Traditionally, summer months mark slow business season worldwide, with August officially established as a holiday in many countries. In UAE, business activities continued on slower pace. Here are some of the most significant events from the last few weeks:
- Data released by VISA has revealed that cash withdrawals in the UAE is 10 times higher than purchases – cash withdrawals amounted to AED 31.66bn while purchases were at AED 3.44bn in 1Q2011.
- The UAE Central Bank has revealed that a new payment services will be added to the Payment and Settlement Systems (UAESWITCH), allowing debit cards to pay for purchases, bills and money transfer among individuals.
- The UAE PM issued two decrees to aid financial activity: one, to establish a federal credit information company as public joint company owned by the federal government and based in Abu Dhabi; two, to establish a government council for financial harmonization comprising representatives of local and federal government.
- The UAE Ministry of Economy has established a specific committee to follow up with all issues related to GCC custom and certificate of origin.
- The Ruler of Dubai issued a law amending DIFC Law No 9 of 2004 appointing a higher board at the DIFC that will be chaired by the DIFC President and members appointed by a decree. The decree issued has stated that Sk. Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai, has been appointed chairman of the board, and Abdul Aziz Al Ghurair as Deputy Chairman, Hussain Al Qemzi, Abdul Fattah Sharaf, Eisa Kazim, Abdullah Saeed Gobash and David Eldon as board members.
- Nakheel launched the first tranche of its long-delayed Dh4.8 billion ($1.3 billion) Islamic bond in line with its five-year restructuring plan.
- ADIA has restructured its external equities department, separating indexed funds from active funds as part of a more focused strategy. Dubai’s foreign trade rose 26% at annual rate to AED 451bn in first five months of 2011.
- The EIBOR (all maturities) rose for first time in six months after consecutive drops in the week ended Aug 25 – six months was at 1.68% compared to 1.67% in mid-Aug and 2.48% a year ago.
- Dirham future contract for one month reached its lowest level in the past 15 years reflecting a high demand for dirhams and lack of liquidity for dollar futures.
