Category: Business

Business

Dubai extends closure of restaurants, hotels and events until further notice

head dubai April 16, 2020 No Comments

All inbound tour operators, hotels, restaurants, venues and event organisers in Dubai are to remain closed until further notice, according to Dubai’s Department of Tourism and Commerce Marketing (DTCM).

The authority said in a circular this week that the precautionary measures taken to curb the spread of Covid-19 will be extended indefinitely.

“In line with Dubai Government Precautionary measures to ensure the health and safety of its residents and visitors, we extend all the Precautionary Circulars on the website until further notice.

Business

COVID-19: Abu Dhabi banks offer loan and financial relief to customers affected by coronavirus

head dubai March 26, 2020 No Comments

Dubai: Abu Dhabi-based banks have announced a package of initiatives to support the emirate’s individuals and businesses as the country fights the coronavirus disease (COVID-19), in line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

First Abu Dhabi Bank, Abu Dhabi Commercial Bank Group and Abu Dhabi Islamic Bank in coordination with the Abu Dhabi Department of Finance and Department of Economic Development, have put together 17 financial initiatives for individuals and SMEs.

All Abu Dhabi banks had announced last week various measures to support their customers affected by coronavirus outbreak.

Relief for retail customers include:

– Payment deferral of 3 months for retail loans of affected customers with zero charges and interest waived for the deferral period

– Interest-free installment offers on loans for school tuition until June 30

– A payment deferral of one month will be available on request for all customers holding personal loans, auto loans and / or mortgage loans with no service charge

– Reduction in bank charges by 50 per cent on early settlement of loans for eligible customers (until June 30)

– An increase in the Loan to Value ratio (LTV) by 5 per cent for first-time home buyers

– Full refund of processing fees for foreign currency credits on cards for due to cancellation of travel plans, and

– Reduction of 50 per cent in late payment charges on credit cards.

For SME customers, these banks will defer up to three months of installments for all loan types. The banks are also working with all customers to ascertain the COVID-19 impact on their cash flows, to provide further support in loan restructuring or deferment.

Business

US approves $2 trillion stimulus

head dubai March 26, 2020 No Comments

Washington: The US Senate approved a historic $2 trillion rescue plan to respond to the economic and health crisis caused by the coronavirus pandemic, putting pressure on Congress to pass the bill quickly and send it to President Donald Trump for his signature.

The massive legislation passed on a 96-0 vote after days of intense negotiations between Senate Republicans and Democrats, who demanded changes to the bill introduced last week by Senate Majority Leader Mitch McConnell.

The package includes an unprecedented injection of loans, tax breaks and direct payments for major corporations and individual taxpayers to help the US economy get through an abrupt shutdown as people avoid social interaction and businesses close to keep from spreading the coronavirus.

More than 68,000 people in the US have been infected with the deadly respiratory disease and some economists warn that unemployment could hit 30 per cent.

The House was scheduled to vote on the legislation Friday. Trump had urged Congress to act “without delay” and said he would sign the legislation immediately.

Who gets what

The package provides for about $500 billion in loans and assistance for big companies, including struggling airlines, as well as states and cities. There is a separate pot of about $350 billion for small businesses.

$800billion

What the US passed as economic stimulus during the financial crisis of 2008.

For individuals the package provides direct payments to lower- and middle-income Americans of $1,200 for each adult, as well as $500 for each child. Unemployment insurance would be vastly expanded. There also is money for hospitals, some of which are on the verge of being overwhelmed.

The size of the stimulus package is unprecedented, dwarfing the approximately $800 billion Obama stimulus that passed five months after the 2008 financial crash. Together with Federal Reserve actions, the legislation amounted to a $6 trillion stimulus, according to White House economic adviser Larry Kudlow, or about 30 per cent of annual GDP.

Business

It’s Sheikh Mohammed Bin Zayed’s birthday today

head dubai March 11, 2020 No Comments

UAE royals, citizens and residents alike have taken to social media to wish His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, on his 59th birthday.

Sheikh Mohamed is the son of the late Sheikh Zayed bin Sultan Al Nahyan, Father of the Nation and the first President of the UAE, and the brother of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. Sheikh Mohamed is married to Her Highness Sheikha Salama bint Hamdan Al Nahyan, and has four sons and five daughters.

Sheikh Mohamed is known for his laughter and down-to-earth demeanor, famously offering to give a lift home to a young girl who was crying on the pavement waiting for her father. When the girl refused, saying she had been instructed not to get into strangers’ cars, the Sheikh insisted on waiting with her until her parent came to pick her up. The story went viral on social media, after a picture was taken of the ruler sitting on the ground with the child.

Business

UAE’s NMC Health receives four serious bids to buy it

head dubai March 9, 2020 No Comments

Dubai: There are four interested parties in the fray to acquire NMC Health with the deadline set to end today for submissions. One or two more potential investors could still throw in their bids in the few hours left, according to informed sources.

Among the four bids, one is from Abu Dhabi investment powerhouse Mubadala, another is from Hussain Sajwani of Damac, and a third from GKI, an Italian healthcare focused firm.

As per London Stock Exchange rules, there’s a 28-day window for official bids to be made after a listed company first announces that a bid was made,” said a senior source at a local bank. “It’s been 28 days since NMC announced that it had received bids from KKR and GKI. KKR has since said it’s no longer interested.

“But there are other parties who definitely are – NMC remains the biggest healthcare operator in the UAE; it has regional aspirations and it is profitable.

“The debts of $2 billion are what is going to be an issue; plus the lack of clarity on the exact holdings of its three principal shareholders, including that of the founder Dr. B. R. Shetty.”

LSE requirements

All takeover bids need to be formally submitted to NMC by close of business on March 9. “You never know – a new offer could still be made,” said another source.

Incidentally, NMC Health shares on London Stock Exchange are still in temporary suspension. But outside of the stock exchange, the company’s shares are being actively sought.

In recent days, news came out that a “custody” bank, which was holding NMC shares pledged to it by one of the principal shareholders, had sold some of it.

It is believed that they were sold for 12.5 pounds a share, above the 10 pounds that the shares were quoted on LSE before they were suspended.

Since December, there have been other instances of banks selling off such blocks of shares belonging to Dr. Shetty and former vice-chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi, and Saeed Mohamed Butti Mohamed Khalfan al-Qebaisi.

It is now believed that the three own less than 10 per cent of shares in NMC from the once lofty holdings of 40 per cent plus.

Business

Coronavirus: UAE airlines react to flight suspension to and from Saudi Arabia

head dubai March 9, 2020 No Comments

Dubai: UAE airlines have released statements regarding the temporary suspension of flights between Saudi Arabia and the UAE.

A statement from Etihad said, “Etihad Airways, the national airline of the United Arab Emirates, has suspended temporarily all flights between Abu Dhabi and the Kingdom of Saudi Arabia, in response to a directive from the General Authority for Civil Aviation, Saudi Arabia, to help prevent the spread of the Covid-19 virus.

“The airline operates up to 12 flights per day between Abu Dhabi and Saudi Arabia. It has cancelled a total of seven flights today between Abu Dhabi and the Saudi cities of Riyadh, Jeddah, Dammam and Medina, and is now advising passengers who were booked to travel today.”

The statement added, “Another four flights which were en-route to Saudi Arabia at the time of the directive were permitted to land. When flights arrived in Riyadh, Jeddah and Dammam, nationals of Saudi Arabi were permitted to disembark but all other passengers remained on the aircraft, which will return to Abu Dhabi. The fourth flight operated to Medina to repatriate Umrah passengers.

“In addition to the flight suspensions to and from the UAE, Saudi Arabia has also banned Saudi nationals and Saudi residents from travelling to countries including the UAE and on passengers travelling from or transiting through Bahrain, Kuwait, Lebanon, Syria, Italy, Egypt and Korea.

“Etihad Airways is working closely with regulatory authorities in the United Arab Emirates and Saudi Arabia and is continuing to monitor this situation closely.

“For passengers impacted by the flight cancellations, procedures are in place for fare refunds or for flight changes when services resume. Etihad will continue to provide updates on this situation as information becomes available.”

A statement from Emirates read, “The Kingdom of Saudi Arabia have issued a directive, which takes immediate effect, suspending operations from several countries including the UAE to all airports in The Kingdom of Saudi Arabia in an effort to control the spread of the COVID-19 virus. This includes all flights to Damman, Jeddah, Medina and Riyadh on 9, 10, and 11 March. As previously updated, operations to Medina have been cancelled up to and including EK809/810 12th March 2020.

“Affected customers due to the cancellations for tickets issued on/before 09th March can opt to; rebook to alternate date of travel till 30th June, travel voucher for ticketed value, or get a refund.

“Customers should contact their travel agent or Emirates office for further support with their rebookings. Customers across the Emirates network holding tickets for final destination Kingdom of Saudi Arabia will not be accepted for boarding at their point of origin until further notice.”

Fly Dubai said, “Following a directive from the Authorities in Saudi Arabia flydubai flights to and from Saudi Arabia have been cancelled until 12 March.

“Passengers who have booked to travel to Saudi Arabia and would like to talk to us about their journey, can telephone our Call Centre on (+971) 600 54 44 45, send an email to letstalk@flydubai.com or send us a private message on Facebook.

“We apologise for any inconvenience caused to our passengers’ travel plans.”

Gulf News awaits response from Air Arabia.

Business Fashion

5 ARAB WOMEN ROCKING THE WORLD

head dubai March 9, 2020 No Comments

Not all heroes wear capes, some of them wear nail polish, skirts and stilettos. Today, 8th of March we want to praise the role of 10 amazing arab women that are breaking the rules and changing stereotypes.

As women we don´t get enough recognition for the amazing things we are doing, challenging the world, beating huge obstacles while taking care of the family and loved ones.

Being a woman is hard. There is a long list of ladies changing the world and making history that deserves recognition and applause. We have created a list of 10 we very much admire and follow from DFN. They are all well known in the region, and we think it is about time, we pay a little tribute to these amazons

5 AMAZING ARAB WOMEN

1. DIALA MAKKI

Speaking of fashion and class is talking about Diala. She has become the voice and bridge between fashion designers and the Arab audience and consumers. Diala has been a strong advocate for realistic beauty and ethics when it comes to social media. She raise her voice every time is necessary. Diala is the perfect example when I say that beauty comes from inside

2. SHAHAD SALMAN

Being a model is hard enough, but being a model with a skin condition makes it a million times harder. The modeling industry can be really hash; on top of that social media can be a monster hard to deal with. Shadah has proven her strength and the importance of the message she is trying to give to the world.

3. HUDA KATTAN

Being a woman entrepreneur is something relatively new in the world. Not often we hear the “boss lady” speech. Executive women, owner business women, you name it. It is a kind of new world for us. Huda has created not only a brand, but has lead and open a path for the generations behind us. What she did is much more than running a business, she changed the business game.

4. GHIZLAN GUENEZ

Representation matters, and is not just a phrase. We all need to be fit in, somewhere, somehow. Ghizlan creating the first online destination for women who want to dress modest in luxury is helping two different groups of women that until now felt there wasnt a place for them to shop and feel they are important.

5. ASEEL ALHAMAD

Pioneers are called crazy until the rest understand the importance of standing up. Oh boy, how much I know about it! Aseel is a woman ahead of her time and she leading the change for many women in Saudi Arabia. There is many ways to do history, she choose to do it from behind the wheels. At DFN you have a fan club!

Business

How hotels in the Middle East are coping with coronavirus impact

head dubai March 5, 2020 No Comments

Dubai: Hotels in the UAE are following airlines in asking their staff to go on unpaid leave, as the hospitality sector battles the full impact of the coronavirus on demand.

The move to sanction unpaid leave will impact mostly on middle-level managers rather than the daily operations staff for now, hotel sources say. Several properties in Dubai and Abu Dhabi are already pressing ahead with the move, which would, they believe, help them to drastically cut down on costs. Employees have been told to utilise all outstanding leave-in-lieu days and proceed on unpaid leave. (There are some who do get paid as well.)

That’s not all – other steps being taken by hotels to reduce costs include closing full floors to save on utilities, a temporary freeze on new hires and replacements, and postponing non-essential purchases. The UAE hotel industry had responded with similar steps back in 2001, after the World Trade Center attacks in New York put the brakes on global travel, and during 2009-10, when the economy was hobbled by the financial crisis.

A senior hotel industry executive said that hotels in the mid-tier space are even changing their food and beverage suppliers to minimise costs. For instance, “They are buying Brazilian meat at half the price instead of from the US or Australian meat,” he added.

Lower rung employees such as waiters and contract workers (who are there for banqueting and catering services, gardening and pest control) are not affected by this move. Employees are forced to take up the proposed option of going on leave or face redundancy.

Slash and then some more

At entry level 5-star hotels, rate have been slashed to Dh300 a night to try and convince travellers to book with them. At the luxury end of the hospitality market, properties are finding even rates as low at Dh1,200 a night is not winning them guests. (Some hotels have countered this demand dip by offering “staycation” packages for UAE residents.)

“I recommend hoteliers in regions affected by the coronavirus to offer special discounts to attract bookings and check all options to reduce fixed costs at the earliest,” said Dr. Tassilo Keilmann, CEO of Wellness Heaven Hotel Guide. “Some affected hoteliers have reduced their staff temporarily – if permitted by contracts. Other hoteliers have shut down parts of their hotels to save energy and reduce workload on their service personnel.”

While luxury hotels have not been hugely affected by cancellations caused by the virus outbreak, mid-tier ones that target corporate travellers have been affected. With firms like McKinsey and Ernst & Young have put strictures on corporate travel for their staff, business-related trips have nosedived. This is keenly felt by hotels.

Event cancellations have further compounded the hotel industry’s woes. With travellers from China, Italy and from within the GCC all but disappearing, hotels are among the worst hit. The general sense of caution related to travel and being in public places is weighing on occupancy and average daily rates.

Business

Emirates said to switch marketing and communications firms

head dubai February 26, 2020 No Comments

Dubai’s Emirates airline and global marketing and communications firm Havas Media are ending their relationship after six years, replacing it with IPG Mediabrands, according to media reports.

In a statement sent to marketing-interactive.com, a Havas Media Group spokesperson was quoted as saying that the firm had “enjoyed a tremendous partnership” with Emirates.

“Our teams around the world are very proud of the growth that we have achieved together, and we wish them continued success and prosperity in the years to come,” the spokesperson added.

According to some media reports, the account is worth an estimated $200 million each year.

In response to a query from Arabian Business, an Emirates spokesperson declined to comment on the matter.

According to the website, in 2017 Havas Media renewed its contract with Emirates through 2020. The agency was tasked with managing the airline’s global media strategy and planning across 150 countries – including high-profile campaigns featuring Pele, Ronaldo and Jennifer Aniston.

IPG Mediabrands has yet to confirm the reports.

Emirates currently works with a number of firms around the firms, including IPG’s Weber Shandwick for PR in Singapore and Malaysia and Publicis Worlwide in China.

Business

Emirati entrepreneur Sara Al Madani to launch at least three firms in 2020

head dubai February 26, 2020 No Comments

Emirati serial entrepreneur Sara Al Madani has plans to launch at least three companies in 2020, including a tech firm that allows high-profile personalities to earn money for video “shout-outs” to their fans.

Al Madani – a board member of the UAE Ministry of Economy’s SME Council and of the Sharjah Chamber of Commerce and Industry – has already founded a number of companies. Among them are Social Fish, a marketing, branding and social media consultancy based in Dubai and Los Angeles, as well as Proposal Cupid, an events company specialising in proposals, engagements and weddings.

In an interview with Arabian Business, Al Madani said that the companies she is launching in 2020 include HalaHi, a company that allows celebrities to send personal video messages to fans.

“It’s a way for celebrities to engage with their audience in a very organic, fun way. It’s [meant] to create a bridge between people and those they idolise, their role models,” she said.

“It also helps the role models be down to earth and engaged with their fan base – and to monetise it and make money out of it,” Al Madani added.

According to the firm’s website, celebrities and ‘influencers’ will be able to earn between $20 and $500 for a single video – often of 30 seconds of less – and take away up to 70 percent of their earnings.

Using the platform, the celebrity is able to choose the videos they wish to do and set their own price.

HalaHi is officially due to be launched in March.

Additionally, Al Madani revealed plans to launch a fitness meal prep company – Fitbar – that is currently being “tested out” on the market.

Influencer Management

Lastly, Al Madani said that later this year she plans to open up a talent management agency that hopes to address one of the most common issues she sees with influencers in the region: mismanagement.

“I’ve seen the way that agencies manage talent. They take the influencer, and make them a money machine, but don’t teach them how to manage their finances,” she added.

“Agencies kill talent and give them an expiry date,” Al Madani said. “They teach them that everything is money. They become so commercial that their shelf life is short. If you’re commercial, someone is always going to come along who is better than you.”

Madani, however, said that she could potentially open more companies this year.

“Do I have more capacity to start more businesses? Yeah. I can go 10 more if I find the ideas,” she added. “Three months ago I had no idea I was going to open these three companies.”

The key, she said, is acting quickly on the ideas.

“If you don’t do it, someone else will. Then you’ll end up working for them,” she said. “If you have a thought, put it in action, or let it go and don’t stress.”