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Dubai records significant growth in all key sectors

Dubai records significant growth in all key sectors Staff Report (abdulbasit@khaleejtimes.com) / 30 June 2013 Dubai posted significant growth in all key economic sectors in 2012 and the emirate will continue to maintain its position as a regional and global hub for business and finance, according to a latest report from the Dubai Economic Council, or DEC.  The report revealed that Dubai’s real economic growth during the last quarter of 2012 increased to 5.3 per cent compared to same quarter in the previous year. This reflects the outcome of the growth in two of Dubai’s key sectors — construction and manufacturing —  in addition to transport and storage, wholesale and retail trade, real estate and the financial sector, which altogether contributed to about 90 per cent of Dubai’s gross domestic product. The report stated that there was a decline in the consumer price index, known as inflation, during the fourth quarter of last year by 0.14 per cent compared to the growth in domestic liquidity that amounted to two per cent. The government’s budget deficit fell to less than $2 billion in 2012 as a result of public spending rationalisation. The real estate sector has witnessed significant growth by about 94 per cent compared to the corresponding quarter in 2011. The average price per square metre for apartments has increased to around three per cent compared to the corresponding 2011 quarter. Last year witnessed an unprecedented growth in the tourism sector, which saw tourism indicators increase notable gains. The number of guests in hotel establishments increased by seven per cent compared to the summer of 2011. Tourism activities have contributed in attracting hundreds of thousands of visitors from outside of Dubai and the state. According to the report, it also coincided with the preparation of tourist facilities and hotels and apartments buildings which aim to increase tourist numbers, the number of buildings have increased by 200 and hotel rooms by 80,000. The number of tourists has exceeded 10 million for the first time in the emirate. The average length of stay in Dubai hotels has increased by 3.77 nights, and the result of the high occupancy rate saw an 83 per cent increase compared to 79 per cent in the corresponding quarter of 2011. Dubai’s foreign trade during the last quarter of 2012 also witnessed remarkable growth, as imports totalled Dh186 billion compared to Dh117 billion of exports. Total trade at the end of 2012 was about Dh1.234 trillion compared to Dh1.1 trillion at the end of 2011. Free zones continued to play a major role in the emirate’s trade, with total exports and imports of these areas during the fourth quarter of about Dh95 billion, equivalent to 32 per cent of Dubai’s total trade. As for the banking sector and financial markets, the industry has continued to increase deposits and loans in the banks of Dubai. The merger of Emirates Islamic Bank and Dubai Bank has increased the ability to attract deposits. These trends would continue in light of the high level of demand for investment and the return of economic and commercial activity in the emirate. Money markets were up significantly in local indicators. At the sector level, the real estate and construction sectors lead the engine of growth in the Dubai Financial Market, with the financial services and investment sectors following.   Continue reading

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Egypt violence builds, American among dead

Egypt violence builds, American among dead (Reuters) / 29 June 2013 Two people, one an American, were killed when protesters stormed an office of Egypt’s ruling Muslim Brotherhood in Alexandria, adding to growing tension ahead of mass rallies aimed at unseating Mohamed Mursi. A third man was killed and 10 injured in an explosion during a protest in Port Said, at the mouth of the Suez Canal. Police on Saturday said the cause was unclear but protesters, believing it was a bomb, attacked the party office in the city. Egypt’s leading religious authority warned of “civil war” after violence in the past week that had already left several dead and hundreds injured. They backed President Mohamed Mursi’s offer to talk to opposition groups ahead of Sunday’s protests. The United Nations, European Union and United States have appealed for restraint and urged Egypt’s deadlocked political leaders to step back from a confrontation threatening the new democracy that emerged from the Arab Spring revolution of 2011. The US embassy said in a statement it was evacuating non-essential staff and family members and renewed a warning to Americans not to travel to Egypt unless they had to. The Muslim Brotherhood said eight of its offices had been attacked on Friday, including the one in Alexandria. Officials said more than 70 people had been injured in the clashes in the city. One was shot dead and a young American man who was using a small camera died after being stabbed in the chest. A Brotherhood member was also killed overnight in an attack on a party office at Zagazig, in the heavily populated Nile Delta, where much of the recent violence has been concentrated. Mursi’s movement said five supporters in all had died this week. “Vigilance is required to ensure we do not slide into civil war,” said clerics at Cairo’s ancient Al Azhar institute, one of the most influential centres of scholarship. In a statement broadly supportive of Mursi, they backed his offer of dialogue and blamed “criminal gangs” who besieged mosques for the violence. The Brotherhood warned of “dire consequences” and “a violent spiral of anarchy”. It accused liberal leaders, including former UN diplomat Mohamed ElBaradei, of personally inciting violence by hired “thugs” once loyal to ousted dictator Hosni Mubarak. Opposition leaders condemned the violence. The army, which has warned it could intervene if political leaders lose control, issued a statement saying it had deployed across the country to protect citizens and installations of national importance. In the capital, Cairo, tens of thousands turned out for rival events some miles apart and there was little trouble. A rally included calls to reconciliation. On Tahrir Square, cradle of the uprising against Mubarak, there was a festive atmosphere and a determination to shake Mursi on Sunday. In Alexandria, as several thousand anti-Mursi protesters marched along the seafront, a Reuters reporter saw about a dozen men throw rocks at guards outside the Brotherhood office. They responded. Bricks and bottles flew. Guns were fired. Officials said dozens were wounded by birdshot. The party office was ransacked and documents were burned, watched by jubilant youths chanting against Egypt’s leaders. In Port Said, a bastion of police had suspected an accident but later said a device exploded among protesters. Canal traffic has not been affected by violence. Cairo Calm Protesters gathered round a Cairo mosque after weekly prayers to show support for Mursi. His opponents hope millions will turn out on Sunday to demand he step down, a year to the day after he was sworn in as Egypt’s first freely chosen leader. Mursi, backed by the Brotherhood, has dismissed such demands as an assault on democracy, setting up an angry confrontation. Some speakers reflected fear and anger among Islamists that opponents aim to suppress them as Mubarak did. But there was also talk from the podium of the need for dialogue – a concern also of international powers worried by the bitter polarisation. A few hundred opposition protesters gathered outside the presidential palace, a focus for Sunday’s rally. Mursi has moved elsewhere. Thousands turned out after dark in Tahrir Square, waving national flags and sampling street food. Abdelhamid Nada, a 32-year-old accountant, had come from the provinces with eight friends to camp out “until Mursi goes”. “The Muslim Brotherhood has no plan at all,” he said, standing by his white tent. “They don’t have any economic plan, they don’t have any social plan, they don’t have any political plan.” Strategic Importance The army, which heeded mass protests in early 2011 to push Mubarak aside, has warned it will intervene again if there is violence, and to defend the “will of the people”. Both sides believe that means the military may support their positions. The United States, which funds Egypt’s army as it did under Mubarak, has urged compromise and respect for election results. Egypt’s 84 million people, control of Suez and its peace treaty with Israel all contribute to its global strategic importance. UN chief Ban Ki-moon urged Egyptians to respect “universal principles of peaceful dialogue”. European Union foreign policy chief Catherine Ashton called for peaceful protests, building trust and a “spirit of dialogue and tolerance”. In Alexandria, opposition marchers said they feared the Brotherhood was usurping the revolution to entrench its power and Islamic law. Others had economic grievances, among them huge lines for fuel caused by supply problems and panic buying. “I’ve nothing to do with politics, but with the state we’re in now, even a stone would cry out,” said 42-year-old accountant Mohamed Abdel Latif. “There are no services, we can’t find diesel or gasoline. We elected Mursi, but this is enough. “Let him make way for someone else who can fix it.” It is hard to gauge how many may turn out on Sunday, but even those sympathetic to Islamic ideas are frustrated by the economic slump and many blame the government. Previous protest movements since the fall of Mubarak have failed to gather momentum, however, among a population anxious for stability and fearful of further economic hardship. Continue reading

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Dubai International Airport braces for summer surge

Dubai International Airport braces for summer surge Lily B. Libo-on / 29 June 2013 Summer is here again, the time when a lot of expatriate families pack their bags and fly home, and residents visit cooler climes. Once again, airport authorities and travel advisors are bracing for the busy days ahead and reminding passengers of those dos and don’ts to make travel a smooth rather than harrowing experience. Dubai International Airport is preparing for the rush of not just outbound passengers but also tourists coming in as their numbers grew 18.9 per cent in May. Smart tips for travellers Say goodbye to loved ones at home to save time and avoid congestion at the airport Use online check-in facilities or self-service check-in kiosks in the departure hall to avoid queuing Ensure that each piece of baggage is within the 32kg allowance to avoid delays; you should expect to be charged for baggage in excess of the limit set by your airline Make sure any liquids, aerosols and gels you are carrying are in a clear re-sealable plastic bag. Each item should not be more than 100ml and the total content of all items should not be more than one litre. Unless absolutely necessary during the journey, it is simpler to pack them in your checked-in baggage Remember to put anything metal — watch, jewellery, mobile phone, coins — into your hand luggage well before you arrive at the X-ray machines, and save time at Security Screening As the world’s second busiest airport for international passengers, Dubai International Airport has come up with a number of new initiatives to ease the flow of passengers this summer. Majed Al Joker, vice-president, Terminal Operations at Dubai Airports, said this year was going to the busiest summer at the airport, and it would pose many challenges, “but the entire team at Dubai Airports is committed and ready to keep it smooth and easy for all our customers. Hence, aside from technological solutions, the airport has also boosted the numbers of trained customer service personnel deployed across the facility to assist passengers”. The new initiatives covered all important areas from the kerb to the boarding gates. “To reduce vehicular traffic in the forecourt at Terminal 3, Dubai Airports has rerouted all buses to the car park check-in, while seating capacity of Concourse B has been increased by nearly 30 per cent. Smart e-Gates have been increased to facilitate easy flow of passengers through immigration. Additionally, the introduction of automatic tray return machines in security check areas is also expected to ease the flow of passengers.” Though the fares of most major airlines are rising by 20 per cent, the increase has nonetheless stopped people from travelling to and from Dubai. Liezel Houghes, a British-American consultant in Dubai for the past five years, says that she has accumulated air miles that enable her to get a free air ticket to Turkey and neighbouring European states this Ramadan. “I travel annually towards the end of July and most of August where business slows down a bit due to Ramadan and the heat is soaring high in Dubai. Luckily, this year my travel is free due to my huge accumulation of air miles,” she says. A German specialist, Ludwig Schmidt, who has been here for three years, will go on vacation with his family to New Zealand as soon as the school holiday starts. “The fare is pretty high, yet this is a great chance to see my sisters there. What is important is this summer, we will escape the heat and will be rejoicing in a family reunion out there,” he says. Dubai International has recorded a passenger traffic of nearly five million for six consecutive months, up by 16.8 per cent to 27,124,195 compared to 23,216,893 during the first five months of 2012. In May alone, the airport facilitated 5,218,832 passengers, an increase of 18.9 per cent compared to 4,388,614 in 2012. Paul Griffiths, CEO of Dubai Airports which manages both Dubai International and Dubai World Central – Al Maktoum International, says that as a result of Emirates airline’s and flydubai’s expanding network, Western Europe topped the list of regions with the largest increase in total passenger numbers (+208,393), followed by the AGCC (+189,810), and the Indian sub-continent (+131,364). “Following the launch of flights by Qantas in May after the airline’s tie-up with Emirates, Australia was the fastest growing destination with 50 per cent growth in traffic and Saudi Arabia a close second (40 per cent) thanks to the post-liberalisation boom in the kingdom’s aviation sector.” India remained the top destination country in terms of total passenger numbers which reached 728,259 in May. In terms of percentage growth in passenger numbers, Eastern Europe remained the strongest market (87.3 per cent), followed by Australasia (45.6 per cent) and Asia Pacific (29.5 per cent). “Passenger numbers at the world’s second busiest international hub increase significantly during the season, which this year will coincide with the holy month of Ramadan boosting the traffic further,” Griffiths says. – lily@khaleejtimes.com Continue reading

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