Month: August 2023

According to figures from the central bank, these savings deposits grew by 5.8% each month.
According to the most recent statistics provided by the Central Bank of the UAE (CBUAE), banks in the UAE held savings deposits of Dhs268.6 billion by the end of June 2023. According to state news agency WAM, interbank deposits are not included in this.

According to figures from the central bank, the amount of these deposits climbed by 5.8% each month, or Dhs14.8 billion.

Money saved in UAE dirhams
About 81.6 percent, or Dhs219.17 billion, of the savings deposits were made in the local currency, the UAE Dirham. 18.4% of the whole amount was made up of foreign currencies, worth Dhs 49.44 billion.

Savings deposits in banks have grown significantly.

These deposits totaled Dhs152 billion in 2018. In 2019, Dhs172.2 billion, Dhs215.2 billion, Dhs241.8 billion, and Dhs245.8 billion were added to this amount.
deposits of CBUAE

The CBUAE released its budget for the first half of the year earlier this month. The public budget of the central bank increased by 32.15 percent, or Dh158 billion, compared to about Dh91.4 billion in June 2022.

This growth continued into the current year, increasing by 17.5% from the beginning of the year to reach Dhs552.5 billion at the end of December 2022, an increase of Dhs97 billion over the first half of the year.

The assets side of the budget’s allocation specified that Dhs257.2 billion would be allocated to cash and bank balances for June. Investments kept till maturity were also designated at Dhs211.32bn.

Allocations for loans and advances and other assets totaled Dhs4.18 billion and Dhs41.38 billion, respectively.

Can you picture working in a vibrant, safe atmosphere where you are not taxed on your income? Although it might sound like a pipe dream, in Dubai, this has long been the case.

High-net-worth individuals (HNWIs) are moving to safer nations with lenient immigration and business rules while nations in the East struggle with trade disruptions and sharply rising gas prices. The United Arab Emirates (UAE) is at the top of the list of nations with a net positive inflow of HNWIs due to reasons including excellent career prospects, safety, and ease of relocation. Of the 10.08 million people residing there, 8.92 million are foreigners, proving that the UAE is still a popular place for foreign investors.

To entice foreign investors, the UAE is adopting a number of legislative modifications to its legal framework. For instance, the UAE has established the 5-year Green Visa and the 10-year Golden Visa, which enable foreigners to sponsor themselves for their residency permits rather than needing an employer to do so. Over the past few years, many people have relocated to Dubai, the most populous city in the UAE, as a result of the launch of new programs for remote workers and independent contractors, as well as easier Covid-19 limitations. Foreigners are drawn to Dubai because moving there is simple, affordable, and provides for zero income tax structures.

Over the past ten years as a business owner in Dubai, I’ve learnt a lot about how to successfully launch a firm in this bustling metropolis. Here are three crucial stages for starting a firm in the Middle East’s commercial center, based on that experience.

Step 1: Choose a business activity in step one.

Choosing the appropriate business activity for your organization is the first step. The best strategy to choose a business activity is to first consider your interests and objectives, then conduct market research to see if that activity is appropriate for the audience you are trying to reach. Dubai offers a wide range of businesses in which international investors can prosper because the UAE is one of the top four economies in the Middle East and North Africa (MENA) region. The UAE set a milestone in 2021 for having the fourth-highest MENA region gross domestic product (GDP). E-commerce solutions, real estate, health & wellness, and construction services rank among the top industries in Dubai. It is clear from Dubai’s thriving startup scene that its citizens are receptive to innovative ventures and concepts.

Step 2: Pick a legal system for your business.

In Dubai, investors have a selection of multiple jurisdictions in which to base their businesses. The distinctions between a mainland corporation and a free zone company must be understood. Each jurisdiction has its advantages and disadvantages.On the one hand, opening a company in a free zone can be advantageous if you want to take advantage of 0% corporate and personal tax and 100% foreign ownership. The inability to conduct direct business within the UAE market through a free zone company results in a disadvantage.

On the other hand, opening a mainland company in Dubai enables you to conduct direct commerce within the UAE market, albeit there can be limitations on foreign ownership. You must have a local partner that owns 51% of your company’s shares in order to get certain permits and engage in certain business activities.

In Dubai, there are more than 30 free zones, and they usually serve enterprises in a particular sector. For instance, the Dubai International Financial Center (DIFC), a financial free zone in Dubai, mostly serves professional businesses in the financial services industry, but the Dubai Internet City (DIC), a free zone in the same city, primarily serves computer enterprises in the area. If you want to establish a free zone business in Dubai, you must choose a suitable zone which is free and based on your industry and business activities.

Step 3: Apply for the required approvals in step three.

Last but not least, in order to operate your firm, you must submit an application to get the required approvals. Apply for your license at the Dubai Department of Economy and Tourism (DET), formerly the Department of Economic Development (DED), if you’re establishing a mainland business in Dubai. You must obtain your license from the responsible government if you are establishing your business in a free zone.

You must then submit an application for a business bank account after receiving your business license. To open a bank account, you must, among other things, have a valid UAE residency visa.

Applying for your UAE resident visa and Emirates ID is thus a crucial stage in the process if you want to meet your banking and commercial obligations.

You might need to submit an application for additional licenses and approvals depending on your line of work. For instance, the Dubai Financial Services Authority (DFSA), the DIFC’s financial services regulator, will require a Financial Services Permission (FSP) if you want to establish a business in the DIFC that provides financial services.

I believe that if you take the three steps I’ve learnt from my twelve years of professional experience in Dubai and apply them to your business setup there, you’ll be well on your way to making this global center your home. These measures will provide you access to the UAE’s diversified market, but they may also give you the chance to develop your company into other MENA nations.

According to a concession agreement struck with the Deendayal Port Authority earlier this year, global port operator DP World will invest $510 million to build and run a new mega-container terminal in the Indian state of Gujarat.

The greenfield terminal at Tuna-Tekra in Kandla, with an annual capacity of 2.19 million TEU (20-foot equivalent units), will assist DP World in growing its footprint in Asia’s third-largest economy.

The joint venture among DP World and India’s government-backed National Investment and Infrastructure Fund, Hindustan Infralog Private, was given the terminal’s concession by the Deendayal Port Authority earlier this year.

A 20-year extension is possible for the build-operate-transfer concession, which has a 30-year term.

Sultan bin Sulayem, group chairman and chief executive of DP World, stated that the company will be able to “deliver trade opportunities, by connecting northern, western, and central India with global markets, thereby generating value for all our stakeholders” as a result of the new terminal.

“India has a significant opportunity landscape. In order to encourage the expansion of commerce and industry, the signing of this concession deal “will further strengthen India’s supply chain,” he stated.

According to a statement from DP World, the project, which is scheduled to be finished in 2027, entails building a terminal next to the current Deendayal Port using a public-private partnership approach.

It will include a 1,100-meter berth that can accommodate modern ships with more than 18,000 TEUs.

The berth can be extended to 1,375 meters under the terms of the concession agreement, according to DP World.

According to the announcement, the facility would be connected to a system of roads, railroads, and designated freight routes to accommodate the rising need for logistical solutions.

According to S.K. Mehta, chairman of the Deendayal Port Authority, “The Tuna-Tekra mega-terminal will be among the biggest container terminals to be set up in the country.”

“It will aid in boosting the port’s productivity and cargo handling capability. As one of the busiest ports in India, we are dedicated to improving our ability to serve the country and businesses by easing traffic and promoting trade efficiency.

According to marine research and consulting services provider Drewry, the world’s container throughput will increase from 858 million TEUs in 2021 to 932 million TEUs by 2025.
To help meet rising demand in important trading markets, DP World earlier this month announced plans to increase container handling capacity by nearly 3 million TEUs by the end of the year.

The corporation, which now oversees 9% of the global handling capacity and ranks among the top five port operators worldwide, said that the expansion will increase its overall gross capacity to 93.6 million TEUs.

According to DP World, key markets will see capacity increases this year at Caucedo (Dominican Republic), Yarimca (Turkey), Sokhna (Egypt), and Jeddah (Saudi Arabia), totaling 1.2 million TEUs, 579,000 TEUs, 500,000 TEUs, and 200,000 TEUs, respectively.

Other markets include terminals in Luanda, Dakar, Berbera, and Vancouver in addition to Callao in Peru and Saigon in Vietnam.

With a total capacity of almost 6 million TEUs, DP World now runs five container terminals in India, namely two in Mumbai and one each in Mundra, Cochin, and Chennai.

The ports operator’s total capacity in the nation will increase to 8.19 million TEUs with the addition of Tuna-Tekra.

Globally, the Swiss shop has more than 100 locations and will carry on with its own identity and management.
Rolex, the largest watch company in Switzerland, has made an unexpected acquisition of Bucherer, a 135-year-old luxury retailer, under which both businesses will continue to function as independent brands.

Bucherer will be integrated into the Rolex group once the takeover has received approval from the competition authorities, according to Rolex, which did not disclose the deal’s value but claimed it will increase the company’s global presence.

According to a statement released on Thursday by Geneva-based and privately held Rolex, “Rolex chose to purchase the watch retailer, which was, until recently, an independent entity, following the decision made by Jorg Bucherer to sell his company’s business in the absence of direct descendants.”

Rolex’s “desire to continue the success of Bucherer and maintain the close partnership ties that have connected both companies since 1924” is reflected in this decision, which was made. The two companies have collaborated for almost 90 years, with one supporting the success and expansion of the other.

The Hans Wilsdorf Foundation, the only owner of Rolex, only owns and manages one store worldwide, which is located in Geneva, the company’s home city. It offers its timepieces for sale through authorized merchants all around the world.

With more than 100 sales outlets worldwide, Bucherer, located in Lucerne, sells a number of high-end watch brands. It has stores in Switzerland, the US, England, Germany, France, Denmark, and Austria.

Since 1924, Bucherer has distributed Rolex watches as an authorized retailer, and 48 of its stores carry Tudor watches, which are less expensive than Rolex models.

The watch retailer has watch repair shops and serves as both brands’ authorized after-sales service center.

Rolex and Tudor run their businesses separately, with Tudor having its own CEO.
The management team at Bucherer will remain the same under the acquisition conditions of the most recent agreement, and Mr. Bucherer, the last person to have met and worked with Hans Wilsdorf, the original founder of Rolex, will continue in his role as honorary president of the Bucherer group.

The Rolex group is sure that this acquisition is the greatest move for all of the watch and jewelry partner brands, as well as for all of the Bucherer group’s employees, according to the firm.

As part of its expansion strategy, Bucherer purchased American watch retailer Tourneau in 2018. A year after purchasing The Watch Gallery in the UK, it made the transfer.

After spending was muted in 2020, it picked up in China and the US in 2021, but the war in the Ukraine, rising inflation rates, and supply chain concerns later had an impact on demand.

According to Deloitte, 2021 was the strongest year ever for the Swiss watch sector, with exports increasing to 21.2 billion Swiss francs, breaking the previous record set in 2014 and surpassing pre-coronavirus levels.

According to the consultancy, the US will account for 15% of Swiss watches exported there in 2022, making it the industry’s largest single market for the past two years.

Deloitte’s poll of business executives found that the US is the next major growth market, followed by China, India, and Gulf nations.

While China hasn’t yet restored its export share to what it was before to the epidemic, Hong Kong’s market is still declining. With 30% and 6%, respectively, Europe and Japan continue to be stable.

Over a million watches were produced by Rolex, which is famous for its Daytona, Submariner, GMT, and Master II models, in 2022, and they brought in more than $13 billion in revenue.

Luxury watches are regarded as reliable stores of value, especially in a market that is unstable and where inflationary pressures are considerable, according to Deloitte.

Consumers who buy watches as investments are motivated to do so, per the consultancy’s research, to resell at a higher price (36%), or to diversify their investment portfolio (33%).

Chinese consumers (55%) are most interested in portfolio diversity, while Singaporeans (49%) prefer resale potential and Italians (31%) are most likely to buy a watch for family members to inherit.