Steve Bonynge, Managing Director HSBC Insurance Brokers (Middle East), said: “We look to contribute to the development and growth of the Qatar insurance market by bringing over 30 years of international experience.” Stuart Pearce, CEO and General Director

QFC Authority, said: “The QFC has attracted a wide range of local, regional and international financial institutions.”

July 28, 2010

Ras Al Khaimah Investment Authority (RAKIA), a major provider of investment opportunities and one-stop solutions in its free zones, industrial parks and offshore facilities as well as in real estate developments and other ventures, has announced that it recently welcomed a 15-member German business delegation that visited Ras Al Khaimah to explore investment opportunities in the emirate. The German delegation was given a comprehensive presentation highlighting the emerging investment avenues in Ras Al Khaimah, while underlining the distinct advantages of investing in the emirate. In particular the presentation focused on the role and achievements of RAKIA and RAK Ceramics, the world’s largest ceramic tiles & sanitaryware manufacturing company.

“The visiting German delegation was seeking a feasible business opportunity that offers them a steady return on investment, complemented by a tax-free environment and strong government support. The delegation was highly impressed with Ras Khaimah’s offerings and expressed their keenness to leverage the emirate’s geographic location, business friendly policies and incentives to use it as a hub to enter the Middle East market,” said Dr. Khater Massaad, CEO, RAKIA. 

A recent report by RAKIA revealed a 75 per cent growth in the total number of businesses registered in Ras Al Khaimah – comprising local and international investors – during the first quarter of 2010. In the month of March, 115 new businesses registered with RAKIA, setting an all-time record with the most number of businesses registered with the investment authority in a single month. Overall, there are more than 6,500 companies registered with RAKIA, representing investors from diverse non-oil sectors, including industrial, commercial, trading, services/consulting, and media companies. There are 3,030 on-shore companies and a total of 3,500 companies registered through RAKIA’s off-shore facility, which recorded a 90 per cent growth during the first quarter of 2010 over the same period in 2009.
 
In addition, RAKIA is in talks with several more companies from countries including Belgium, UAE, USA, Kuwait, Egypt, Turkey, Italy, India, Germany, France, Pakistan and Canada to set up business ventures and investment activities in the emirate. Up to 66 per cent of businesses registered in RAKIA are from international destinations like Europe, India, USA, Russia, CIS and several Asian countries, while 19 per cent are from the rest of the Middle East. Domestic investors account for the remaining 15 per cent of business registered in the emirate.
 
The German business delegation was accompanied by Germany-based SG Flensburg-Handewitt, one of the world’s best handball teams and the European champions in handball league. The team, which is sponsored by RAK Ceramics Germany, was in Ras Al Khaimah for a training stint as part of their pre-season training campaign. 

DHDA Workshop

Dubai, 27 July, 2010: The Business Excellence Centre at the Department of Economic Development (DED) organised a 2-day workshop on the Dubai Human Development Award (DHDA), for potential applicants this year. The workshop was intended to facilitate the application process by helping companies in conducting a self assessment and then preparing their submission content.

The initiative is part of promoting the cause of national human resources development and ensuring that nationals are provided with an adequate environment for growth and development within organisations.

Mr Alaa Garad, CEO, International Performance Excellence Company, who led the workshop, presented an overview of the criteria for evaluation developed by the advisory body, the application process and other aspects pertaining to the award. More than 18 representatives from major private sector companies participated in the workshop, which was followed by a debate where all questions relating to the award were discussed.

“The Dubai Human Development Award assumes great significance in view of the growing number of young UAE nationals joining the workforce and the increasing challenges to Emiratisation,” said Mohammed Bushanain, Executive Director of the Business Excellence Centre. “The award promotes close co-operation between the government and private sector and encourages companies and establishments operating in Dubai to evaluate and reiterate their commitment to national human resources development.”

The DHDA is open to all UAE-based establishments in the private and government sectors that invest in national human resources and facilitate their growth and development within their organisation. The last date for receiving submission documents for the award is 31 October, 2010.

DHDA is given in three categories – The Dubai Human Development Appreciation Programme (DHDAP), The Dubai Human Development Award and the Gold Category. The award covers a range of economic sectors including trade, manufacturing, construction, professional, services, tourism, healthcare, higher education, financial services and government.

Applications will be evaluated by a team of experts, who will conduct site visits and prepare detailed assessment reports highlighting the existing best practices and the areas for improvement in each company. The examiners evaluate applications on the basis of four criteria - commitment (20 per cent), process (45 per cent), results (29 per cent) and contribution to society (six per cent).

Insurance premiums in the GCC reached an overall volume of $10.6 billion (Dh38.92bn) last year, showing a massive 28 per cent year-on-year growth rate, according to research conducted by Value Partners, a leading global management consulting firm.

This compares to a worldwide growth of 3.4 per cent in nominal dollar terms, implying stagnation in real terms.

“The region’s insurance growth rate sounds impressive; however, it is not nearly as large as it should be,” said Santino Saguto, Managing Director of Value Partners Dubai office.

“Insurance penetration, for example aggregate insurance premiums over GDP, stands at one per cent for GCC countries. In contrast, the developed insurance markets in the US and Europe register penetration rates in the range of 5-15 per cent. Saudi Arabia has a particularly low penetration of only 0.6 per cent, dwarfed in absolute size by its smaller neighbour, the UAE [which] has a penetration rate of two per cent.”

The study also gives an insight into the relative strength of insurance classes: motor insurance is the strongest, followed by health and property. Life insurance is particularly weak, accounting for only 15 per cent of total insurance premiums, compared to 60 per cent in Europe.

“GCC residents seem to buy insurance products only if they have to. It is not by coincidence that mandatory third-party motor insurance is the leading class,” said Saguto. “All other non-life insurance classes, health included, are almost 100 per cent corporate business. GCC nationals expect their governments to cover most risks for them, the majority of healthcare is free and provided by the government.”

Dubai UAE – July 25, 2010 – The UAE’s Consumer Confidence index has shown a slight drop of 2 points,  bringing the index from 103 points in the first quarter of 2010 to 101 in the second quarter. However, the UAE still maintains last quarter’s inclusion amongst the top 10 most optimistic nations according to the latest edition of the Nielsen Global Consumer Confidence Index.

Nielsen’s Global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among approximately 27,000 Internet users in 48 countries throughout Asia Pacific, Europe, Latin America, the Middle East and North America. Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism.

Global consumer confidence cautiously edged up one index point to 93 in the second quarter as confidence increases in booming Asian markets were offset by European consumers’ growing concerns of an escalating debt crisis, which battered confidence levels in 9 out of 24 European markets.  In the U.S., the world’s largest economy, consumer confidence rose two points indicating a continuation on course for a slow, but steady climb out of the recession.

India (129 index points), Indonesia and Vietnam (both 119 index points) were the most optimistic nations in the second quarter of 2010.  Meanwhile, Lithuania (52) and Japan (55) were the most pessimistic nations. The largest drop of consumer confidence was in Spain which plummeted by 10 index points to its lowest level on record at 69 index points from 79 in Q1 of this year.

“Despite bright prospects in Asia, the global economic recovery that was anticipated this year has been hindered by Europe’s ongoing debt crisis. UAE consumer confidence is reflecting this disparity with a marginal drop not impacting its position in the top 10 optimistic nations this quarter,” said Himanshu Vashishtha, Regional Managing Director, Middle East, Pakistan, The Nielsen Company. “UAE consumers realize that the road to full economic recovery will likely take longer than expected and that they should still spend cautiously. With the steep decline of early 2009 well behind them, consumers continue to be comfortable about their financial situation and job perspective this quarter, largely convinced that the worst is over,” he added.

The number of consumers that perceive UAE to be in a recession has dropped three points since the last quarter, with 42 percent of those surveyed believing the recession will be over in next 12 months. The survey also revealed that about 76 percent of the nation’s consumers have changed their spending habits to save on household expenses, even though 64 percent of consumers surveyed said that their state of personal finance is excellent or good for the next 12 months.

“In the UAE, consumers are still focused on repairing their household balance sheets with 50 percent allotting any remaining income (once they have covered their essential living expenses) to savings and paying off debt (34 percent), and focusing on cutting down their car and out of home entertainment expenses,” explained  Sevil Ermin, Managing Director, UAE, The Nielsen Company. “However, since the starting of the summer months, UAE consumers appear set to take that much needed vacation this quarter,” she added.

Globally, concerns about the economy and job security remain consumers’ top concerns in Q2 of 2010. In the UAE, 17 percent consumers cite job security as a main life concern but this number has decreased since last quarter which previously stood at 20 percent. More than half (58 percent) of consumer believe that the job prospects in UAE over the next 12 months will be excellent or good. 

Does the building where you live in have insurance cover to protect you and your valuables from fire or other accidents?
 
Emirates 24|7 found that most residents do not bother to check whether a building is insured or not before moving in.
 
Only when disaster strikes they are aware of the reality, as in the case of several families who lost everything in the recent Kuwait Tower fire in Sharjah.
 
Several of the high-rise residential towers in Sharjah and other Northern Emirates do not have proper insurance cover.
 
For landlords, this amounts to savings in insurance premiums that can run into tens of thousands of dirhams.
 
Speaking to Emirates 24|7, sources in insurance business said many high-rise towers in Sharjah, Ajman and other emirates are leased out without proper insurance cover.
 
This leaves tenants with potential risks, as they were the ones who bore the brunt of the fire in Kuwait Tower, a 14-storey residential building in Sharjah. Most of the tenants lost their valuables and household items in the massive fire that raged for over 12 hours.
 
Many tenants of high-rise buildings who spoke to Emirates 24|7 said they are not aware of any insurance cover for their apartments and buildings.
 
In Dubai, especially in free zones, insurance is a must for leasing buildings and offices. However, in Sharjah and other Northern Emirates, property owners and real estate companies don’t purchase insurance cover as it is not mandatory by law.
 
The value of a multi-storeyed building might run into several millions of dirhams and even an insurance premium of less than one per cent of the property value can be a high amount for the landlord.
 
“We manage several residential buildings in Sharjah and Ajman. We don’t buy insurance cover for them because it is a costly affair and landlords are reluctant to pay any insurance premium. The insurance premium could range between Dh15,000 and Dh25,000,” said the manager of a leading real estate firm in Sharjah.
 
He said prospective tenants also do not insist or check whether a building is insured or not and do not take special insurance cover for their apartments.
 
K Cherian Thomas, Senior Marketing Manager, Al Buhaira National Insurance Company which handles property insurance, said: “It is unfortunate that building owners are reluctant to insure their buildings.”
 
“Compared to the huge amount they collect as rent, the insurance premium will only be a small percentage. For example, if the value of a building is Dh20 million, the annual premium will be nominal.”
 
“There are no clauses in Sharjah or Ajman lease agreements that the building/home should be insured,” he said.
 
Thomas said there are several insurance products available in the market that cover third-party damages or physical damages, but there are few takers for them.
 
“Household items like ornaments, electronic appliances and other valuables can be insured by either the property owner or the real estate company,” Thomas said.
 
Another industry source said: “Medical insurance is now compulsory, so is vehicle insurance. But when you take a home on lease, nobody checks whether it is insured or not. I think there should be a clause in tenancy contracts that ensure that buildings are fully covered for fire and other accidents.”
 
One reason property owners do not take insurance cover for the building is because real estate value goes up with time and insurance premium goes up proportionately.
 
“If the insurance premium is based on reinstate value, the premium will be calculated on the original construction cost of the building.”

The field visits complement the campaign organized recently by the Division with the consumer and food products suppliers including many shopping malls. The visits covered outlets of Union Co-operative Society, Hyper Panda, Mirdiff City Centre, Carrefour, Lulu supermarket, and Spinneys.

“This campaign is part of DED’s commitment to protect consumer rights, and highlights DED’s continued co-ordination with retail outlets to offer foodstuff products at reasonable and consistent prices, especially during the Holy Month of Ramadan,” said His Excellency Mr Sami Al Qamzi, Director General, DED.

“The field visits also aimed at enhancing awareness on consumer protection and ensure the availability of products at suitable prices, and maintain the stability of prices, especially during Ramadan,” added Omar Bushahab, CEO, Commercial Compliance and Consumer Protection Division, DED.

He said that Ramadan Food Baskets provided by the outlets are optional in Dubai due to the low turnout of consumers in recent years.

Stressing on the partnership between DED and the retail sector, Bushahab said: “We look at working together to provide best services to consumers. DED will continue to communicate with consumers and merchants in all outlets to maintain a balance between availability and prices of goods.”

The Commercial Compliance and Consumer Protection Division urged outlets to display clearly an announcement issued by DED on consumer rights with the Division’s toll-free number and website for consumers to communicate with DED.

The Commercial Compliance and Consumer Protection Division will conduct awareness campaign across all major retail outlets in Dubai following the month of Ramadan. The Division conducted an awareness programme that covered more than 3000 traders in Dubai, which aimed at familiarizing them with the rights of the consumer.

July 24, 2010

Al Ansari Exchange, a leading provider of worldwide remittance and foreign exchange services, has been awarded the ‘Superbrand’ status by the UAE Superbrands Council for the fifth consecutive year. Joining the ranks of other top brand awardees from other local industries, the company has been recognised for its achievements as the largest exchange house in the country. Bassel El Bakkar, Assistant Marketing Manager, Al Ansari Exchange, received the award on behalf of Managing Director Mohammed Al Ansari, from Mike English, CEO of Superbrands Council, during the event.