Source: Arabian Business.com
=========================================
Abu Dhabi Summary Court has issued an order for the provisional attachment of the bank deposits of Saad Trading, Contracting and Financial Services Company and Saad Holding Company as well as the partners in these two Saudi firms, according to a report.
Giving its decision on a writ filed by a large national bank in the UAE, the court also ordered the provisional seizure of any movable properties in any emirate as well as the major amount of shares they own in a number of companies listed in the stock markets in the UAE, the newswire WAM reported on Thursday.
The attachment order on deposits with the banks operating in the UAE has been enforced with immediate effect through the UAE central bank, which in turn will send circulars to the banks for the attachment of deposits within the limit of $151m, WAM added.
The defendants had signed loan agreements with the bank for credit facilities, the total value of which had reached $151m, it said.
The two firms then had defaulted on repayment of the loans and were being sued by creditors at the local, regional and global levels leading to the deterioration of credit ratings of the subsidiaries of these two companies by international rating agencies, WAM said.
Moreover, a number of creditors had resorted to the seizure and freezing of funds and assets of one of their affiliates, the newswire added.
Wednesday, 18 November 2009
Bouncing a cheque in Dubai
Adding to the story below is the very cautionary tale of an aquaintance who lived and worked in Dubai in the early 2000s. This person returned to their home country and remained there for 6+years. They've just returned to the UAE and started a new job. During the visa check process the authorities have discovered that the person bounced a cheque during their first stint here. The person was arrested on the spot and it turns out that a case had been brought against them in Dubai Court years ago and they'd been found guilty in absentia. The sentence handed down at the time was a 6 month jail term and the person started serving that sentence this week, starting the day after their arrest. Be warned, don't bounce a cheque in the UAE..all the rumours are true.
New job in Dubai ends in jail time
This story seems to back up something I heard recently about a New Zealander, here in the UAE on a week's holiday. He went to visit a friend at their Dubai office. The friend had to leave the office briefly and told the Kiwi to sit at the friend's desk and surf the internet to fill in time while he waited. During the friend's absence, the immigration guys arrived for a spot check, something which happens in Dubai fairly regularly. They saw the Kiwi "working", checked his passport which showed a tourist visa and arrested him for working illegally. No explanations were accepted and the Kiwi ended up in jail for several weeks until his release could be arranged.
Source: 7 Days 17 Nov 09
==================================
Two British real estate agents have been jailed for working without visas just days after starting new jobs in Dubai.
Nick Awalski and David Wynn have now been in Al Aweer jail for three weeks after they were found working on tourist visas.
Awalski had been at his new company just two days when he was nabbed in a visa raid.
A close friend said she was shocked by the arrests and said she hoped it wasn’t the start of a clampdown on foreigners.
“I don’t understand it. Everyone works on a tourist visa while their papers are being sorted out.
Nick and David never intended to break the law,” she said.
Both were arrested in the reception area of the company after labour officials posed as clients wanting to buy an apartment.
Awalski’s heartbroken mother has flown in from the UK to visit him in jail.
“His family aren’t taking it well, they are heartbroken and very worried about his future,” the friend said.
Awalski had previously worked for a major Dubai property company, while Wynn had just arrived from the UK for the new job.
“They had left it to the company to sort out their paperwork, like everyone does,” the friend said.
Wynn, 27, from Reading and Awalski, 30, from London, are due to appeal their conviction and deportation at a hearing scheduled for November 24.
Their lawyer, Abdullah Al Nassar, confirmed that the two men had only just begun working when they were jailed and said it should never have happened.
“It’s just really bad luck,” he said, adding there was no set time limit for companies to obtain work visas and that many employees go for weeks or months without the correct work visas.
An official from the Dubai General Directorate of Residency and Foreigners Affairs confirmed that there is no set time limit for companies to obtain work visas but said that they should file early to avoid legal problems.
He said he could not comment on individual cases.
Source: 7 Days 17 Nov 09
==================================
Two British real estate agents have been jailed for working without visas just days after starting new jobs in Dubai.
Nick Awalski and David Wynn have now been in Al Aweer jail for three weeks after they were found working on tourist visas.
Awalski had been at his new company just two days when he was nabbed in a visa raid.
A close friend said she was shocked by the arrests and said she hoped it wasn’t the start of a clampdown on foreigners.
“I don’t understand it. Everyone works on a tourist visa while their papers are being sorted out.
Nick and David never intended to break the law,” she said.
Both were arrested in the reception area of the company after labour officials posed as clients wanting to buy an apartment.
Awalski’s heartbroken mother has flown in from the UK to visit him in jail.
“His family aren’t taking it well, they are heartbroken and very worried about his future,” the friend said.
Awalski had previously worked for a major Dubai property company, while Wynn had just arrived from the UK for the new job.
“They had left it to the company to sort out their paperwork, like everyone does,” the friend said.
Wynn, 27, from Reading and Awalski, 30, from London, are due to appeal their conviction and deportation at a hearing scheduled for November 24.
Their lawyer, Abdullah Al Nassar, confirmed that the two men had only just begun working when they were jailed and said it should never have happened.
“It’s just really bad luck,” he said, adding there was no set time limit for companies to obtain work visas and that many employees go for weeks or months without the correct work visas.
An official from the Dubai General Directorate of Residency and Foreigners Affairs confirmed that there is no set time limit for companies to obtain work visas but said that they should file early to avoid legal problems.
He said he could not comment on individual cases.
Oprah apologises over Dubai programme
Source: The National
==============================
Harpo, the production company behind The Oprah Winfrey Show, has apologised for misrepresenting Dubai in a segment of the programme featuring women around the world.
Dr Lamees Hamdan of Dubai, an Emirati mother of five and the founder of the Shiffa cosmetics brand, sparked controversy when she appeared via Skype as one of six women featured on the hugely popular US-based show.
The segment began with a voice-over by Ms Winfrey that said: “Thanks to this country’s rich oil supplies, the government provides its citizens with free water, electricity and health care. The best part? No income tax!”
Dr Hamdan said, incorrectly, that water, electricity and health services were free in the UAE. And she referred to the shela and abaya as “cultural” and not religious. She said she does not wear them, although her sisters do.
On Monday, a spokeswoman for Oprah’s production company told PageSix of the New York Post that “it was never the intention of the Oprah show to misrepresent the people of Dubai”.
Many local viewers of the show have reacted. Haif Zamzam from Abu Dhabi wrote on The National website that she was “highly disappointed that people got this worked up about what [Dr Hamdan] said. I feel she said nothing (of substance) that was wrong, except for the fact we don’t pay utility bills. Other than that, it was all spot-on.”
==============================
Harpo, the production company behind The Oprah Winfrey Show, has apologised for misrepresenting Dubai in a segment of the programme featuring women around the world.
Dr Lamees Hamdan of Dubai, an Emirati mother of five and the founder of the Shiffa cosmetics brand, sparked controversy when she appeared via Skype as one of six women featured on the hugely popular US-based show.
The segment began with a voice-over by Ms Winfrey that said: “Thanks to this country’s rich oil supplies, the government provides its citizens with free water, electricity and health care. The best part? No income tax!”
Dr Hamdan said, incorrectly, that water, electricity and health services were free in the UAE. And she referred to the shela and abaya as “cultural” and not religious. She said she does not wear them, although her sisters do.
On Monday, a spokeswoman for Oprah’s production company told PageSix of the New York Post that “it was never the intention of the Oprah show to misrepresent the people of Dubai”.
Many local viewers of the show have reacted. Haif Zamzam from Abu Dhabi wrote on The National website that she was “highly disappointed that people got this worked up about what [Dr Hamdan] said. I feel she said nothing (of substance) that was wrong, except for the fact we don’t pay utility bills. Other than that, it was all spot-on.”
Wednesday, 11 November 2009
The day the Brits burnt down RAK.
Two hundred years ago, Ras al Khaimah was burnt to the ground. Today, experts say, that sacking by a British fleet has directly affected the shape of the UAE.
Thirteen lithographs on a wall of the Sharjah Art Museum show each grisly scene of the British attack on Ras al Khaimah on November 13 1809. Black smoke rises about a town engulfed in flames as soldiers fight door-to-door through the streets of 19th-century RAK.
The battle was the beginning of a new era in the Gulf: that of British control. It led to the General Treaty of 1820 that brought 150 years of peace and trade to the Gulf under the British and ensured a maritime truce between independent emirates that later formed the UAE.
But so brutal was the massacre of 1809 that its violence is still remembered in song and story two centuries later. Mention of the battle still brings pain to those from the area.
Yet if it had not been for the battle of 1809 and the resulting treaty in 1820, most historians agree, the UAE of 2009 would be a very different place.
“Because of that treaty, we have independent emirates,” said Dr Hasan al Naboodha, a history professor at UAE University. “It was divide and rule. Just imagine if the British didn’t come and attack the Qawasim, would you hear today about the emirate of Ajman or Umm al Qaiwain?”
The cause of the battle between the British and the Qawasim, the seafaring tribe that ruled coastal areas on the Eastern, Persian and Arabian coasts, is still hotly disputed among historians today. “The British accused the Qawasim of being pirates and attacking ships but we don’t know exactly what went on because we don’t have local sources from this time,” said Dr al Naboodha.
Contemporary British accounts depicted the Qawasim tribe as an unruly and ruthless group of plunderers and pirates.
Dr Sheikh Sultan bin Mohammed, Ruler of Sharjah, challenged this in his 1986 book The Myth of Arab Piracy, which argued that the British were foreign intruders who sought to expand their power in the Gulf for the East India Company.
Until late in the 18th century, skirmishes between the Qawasim and British were rare. In 1797, however, the Viper, a British ship, was attacked by Qawasim dhows while anchored in Bushire an attack for which Sheikh Saqr bin Rashid, then of Ras al Khaimah, apologised and offered settlement.
In 1804 the British ships Trimmer and Shannon were attacked by Sheikh Qadhib al Qasimi of Lingeh.
In 1806, a treaty was agreed upon by the Qawasim, the British and the British-backed Omanis, long-standing rivals of the Qawasim. Within a few months, relations became strained between the Omanis and the Qawasim over territorial disputes at Qishm and the treaty fell apart.
In October 1808 the Qawasim were held responsible for an attack on the Sylph, an eight-gun British schooner, that killed 30.
The next May, the Qawasim seized the Minerva and took it to Ras al Khaimah with an officer’s wife on board. She was held for ransom. One survivor claimed that the Minerva was attacked by more than 50 dhows in a two-day battle that ended in the deaths of 45 of the 77 on board.
The event fuelled British anger against the Qawasim and a larger confrontation loomed.
Such events were popular in the British media, which, according to Dr Sheikh Sultan, exaggerated the numbers of those killed and vilified the Qawasim.
“It was the power of this saga to stir the imagination, as piracy still does, which ensured it would not be forgotten,” wrote Charles Davies in his 1997 book The Red Arab Flag: An Investigation into Qasimi Piracy, 1797-1820. “Contemporary newspapers, travellers, officers and others all felt moved to write about the Qawasim and British measures taken against them.”
But even before the Minerva incident, the Supreme Government in Calcutta had already made a decision to attack Ras al Khaimah.
A British fleet of 16 ships and more than 1,300 troops sailed from Bombay, now known as Mumbai, on September 14 1809, headed by HMS Chiffone and commanded by Capt Wainwright. The fleet reached Muscat, a British outpost, on the evening of November 11 and reached RAK within a day.
The Qawasim had no way of knowing which of their ports the British would attack. By the time they realised that the target was Ras al Khaimah, it was too late to call for assistance from their ships in Sharjah, Ajman, Umm al Qaiwain or Hamriyah.
Dawn on November 12 brought the first assault from the British in the form of a naval bombardment that pummelled the town’s defences and homes.
The bombardment lasted until dusk. At nightfall, Ras al Khaimah’s leaders held a majlis and decided that they could not abandon their town. A thousand civilians, mostly women and children, were evacuated during the night and the men who remained prepared for battle.
In the early morning of November 13, 600 men from the British fleet landed near the town’s main defences. Forced to leave their boats several metres from the shore, the British struggled through chest-high water to reach the beach where they were greeted with musket fire by the Qawasim.
But numbers were on the side of the British. By midmorning, they had breached Ras al Khaimah’s defences and advanced on the town.
“There was no comparison between the two [forces],” said Dr al Naboodha. “The Qawasim had very, very old weapons that they used to take from other ships they had attacked.”
Although heavily outnumbered, the Qawasim fought the British in the narrow streets, house to house. The battle lasted for hours before the British decided to set the town’s houses alight. At 10am, the Qawasim began a retreat; men swam across the creek to safety, under the cover of smoke from their burning homes.
The next day, the British fleet left to attack remaining Qawasim ports across the Gulf. Over a month and a half, more than 100 Qawasim ships were destroyed.
The British campaign lasted until 1810 but for years afterwards the Royal Navy hunted vessels from the Qawasim ports, fearing that they would rebuild and challenge British naval power again. They also placed an embargo against the export of Indian teak to the Qawasim in an effort to stop them from rebuilding their fleets.
But by 1812, the Qawasim had rebuilt their ships with wood imported from Africa and, before long, were in maritime disputes with the British once more.
In December 1819, Britain resolved to stop the Qawasim expansion once and for all. More than 200 ships were destroyed and towns along the coast, from Rams to Abu Hail, were demolished. The town of Ras al Khaimah was razed to the ground.
These events led to the General Treaty of 1820, putting the Gulf firmly under British control and bringing maritime peace, trade and economic growth.
From then on, Ras al Khaimah, no longer focused on naval expansion, became a trade centre between Persia, India and the bedu-controlled interior.
The treaty of 1820 secured the autonomy of small emirates by splintering Qawasim control and led to 150 years of British governance in the Gulf.
And yet, local historians say that it came at a heavy cost.
“It’s a very sad history, everybody would say that,” said Dr Hamad bin Seray, an associate professor at the department of history and archaeology at UAE University. “People lost their independence.
“It made peace in the Gulf itself but not on the land; there was still a lot of killing and kidnapping inland. The British government wanted peace so its connection with south Iraq and India would be safe. We have a lot of documents from that period and I think a lot was British propaganda that said they came here to develop the area.”
Dr bin Seray, like many from Ras al Khaimah, believes the British response to alleged piracy was disproportionate, considering the suffering visited on the people of RAK.
“Even the excuse of the British government for the attack on RAK was that the Qawasim and people of RAK were pirates, but what did they do? They attacked a couple of British ships, nothing else,” he said. “And they [the British] attacked and killed a lot of people in RAK. The British destroyed all the forts, all the ruins, even the ships, everything was destroyed. They didn’t leave anything.”
Brig Saeed Laha, who runs his own museum in RAK and has spent years collecting the correspondence between the British and the Emirati rulers of the time, said 1809 was a tragedy that must be remembered.
“The people are defending themselves and their country,” said Brig Laha. “By sword, by old rifles, they fought one by one.”
Of course, he added, we may never know which version of history to trust.
“There are many stories and many songs about 1809 but you can’t believe everything,” he said. “The history is different from man to man.”
Source: The National
Photo: National Maritiem Museum
Thirteen lithographs on a wall of the Sharjah Art Museum show each grisly scene of the British attack on Ras al Khaimah on November 13 1809. Black smoke rises about a town engulfed in flames as soldiers fight door-to-door through the streets of 19th-century RAK.
The battle was the beginning of a new era in the Gulf: that of British control. It led to the General Treaty of 1820 that brought 150 years of peace and trade to the Gulf under the British and ensured a maritime truce between independent emirates that later formed the UAE.
But so brutal was the massacre of 1809 that its violence is still remembered in song and story two centuries later. Mention of the battle still brings pain to those from the area.
Yet if it had not been for the battle of 1809 and the resulting treaty in 1820, most historians agree, the UAE of 2009 would be a very different place.
“Because of that treaty, we have independent emirates,” said Dr Hasan al Naboodha, a history professor at UAE University. “It was divide and rule. Just imagine if the British didn’t come and attack the Qawasim, would you hear today about the emirate of Ajman or Umm al Qaiwain?”
The cause of the battle between the British and the Qawasim, the seafaring tribe that ruled coastal areas on the Eastern, Persian and Arabian coasts, is still hotly disputed among historians today. “The British accused the Qawasim of being pirates and attacking ships but we don’t know exactly what went on because we don’t have local sources from this time,” said Dr al Naboodha.
Contemporary British accounts depicted the Qawasim tribe as an unruly and ruthless group of plunderers and pirates.
Dr Sheikh Sultan bin Mohammed, Ruler of Sharjah, challenged this in his 1986 book The Myth of Arab Piracy, which argued that the British were foreign intruders who sought to expand their power in the Gulf for the East India Company.
Until late in the 18th century, skirmishes between the Qawasim and British were rare. In 1797, however, the Viper, a British ship, was attacked by Qawasim dhows while anchored in Bushire an attack for which Sheikh Saqr bin Rashid, then of Ras al Khaimah, apologised and offered settlement.
In 1804 the British ships Trimmer and Shannon were attacked by Sheikh Qadhib al Qasimi of Lingeh.
In 1806, a treaty was agreed upon by the Qawasim, the British and the British-backed Omanis, long-standing rivals of the Qawasim. Within a few months, relations became strained between the Omanis and the Qawasim over territorial disputes at Qishm and the treaty fell apart.
In October 1808 the Qawasim were held responsible for an attack on the Sylph, an eight-gun British schooner, that killed 30.
The next May, the Qawasim seized the Minerva and took it to Ras al Khaimah with an officer’s wife on board. She was held for ransom. One survivor claimed that the Minerva was attacked by more than 50 dhows in a two-day battle that ended in the deaths of 45 of the 77 on board.
The event fuelled British anger against the Qawasim and a larger confrontation loomed.
Such events were popular in the British media, which, according to Dr Sheikh Sultan, exaggerated the numbers of those killed and vilified the Qawasim.
“It was the power of this saga to stir the imagination, as piracy still does, which ensured it would not be forgotten,” wrote Charles Davies in his 1997 book The Red Arab Flag: An Investigation into Qasimi Piracy, 1797-1820. “Contemporary newspapers, travellers, officers and others all felt moved to write about the Qawasim and British measures taken against them.”
But even before the Minerva incident, the Supreme Government in Calcutta had already made a decision to attack Ras al Khaimah.
A British fleet of 16 ships and more than 1,300 troops sailed from Bombay, now known as Mumbai, on September 14 1809, headed by HMS Chiffone and commanded by Capt Wainwright. The fleet reached Muscat, a British outpost, on the evening of November 11 and reached RAK within a day.
The Qawasim had no way of knowing which of their ports the British would attack. By the time they realised that the target was Ras al Khaimah, it was too late to call for assistance from their ships in Sharjah, Ajman, Umm al Qaiwain or Hamriyah.
Dawn on November 12 brought the first assault from the British in the form of a naval bombardment that pummelled the town’s defences and homes.
The bombardment lasted until dusk. At nightfall, Ras al Khaimah’s leaders held a majlis and decided that they could not abandon their town. A thousand civilians, mostly women and children, were evacuated during the night and the men who remained prepared for battle.
In the early morning of November 13, 600 men from the British fleet landed near the town’s main defences. Forced to leave their boats several metres from the shore, the British struggled through chest-high water to reach the beach where they were greeted with musket fire by the Qawasim.
But numbers were on the side of the British. By midmorning, they had breached Ras al Khaimah’s defences and advanced on the town.
“There was no comparison between the two [forces],” said Dr al Naboodha. “The Qawasim had very, very old weapons that they used to take from other ships they had attacked.”
Although heavily outnumbered, the Qawasim fought the British in the narrow streets, house to house. The battle lasted for hours before the British decided to set the town’s houses alight. At 10am, the Qawasim began a retreat; men swam across the creek to safety, under the cover of smoke from their burning homes.
The next day, the British fleet left to attack remaining Qawasim ports across the Gulf. Over a month and a half, more than 100 Qawasim ships were destroyed.
The British campaign lasted until 1810 but for years afterwards the Royal Navy hunted vessels from the Qawasim ports, fearing that they would rebuild and challenge British naval power again. They also placed an embargo against the export of Indian teak to the Qawasim in an effort to stop them from rebuilding their fleets.
But by 1812, the Qawasim had rebuilt their ships with wood imported from Africa and, before long, were in maritime disputes with the British once more.
In December 1819, Britain resolved to stop the Qawasim expansion once and for all. More than 200 ships were destroyed and towns along the coast, from Rams to Abu Hail, were demolished. The town of Ras al Khaimah was razed to the ground.
These events led to the General Treaty of 1820, putting the Gulf firmly under British control and bringing maritime peace, trade and economic growth.
From then on, Ras al Khaimah, no longer focused on naval expansion, became a trade centre between Persia, India and the bedu-controlled interior.
The treaty of 1820 secured the autonomy of small emirates by splintering Qawasim control and led to 150 years of British governance in the Gulf.
And yet, local historians say that it came at a heavy cost.
“It’s a very sad history, everybody would say that,” said Dr Hamad bin Seray, an associate professor at the department of history and archaeology at UAE University. “People lost their independence.
“It made peace in the Gulf itself but not on the land; there was still a lot of killing and kidnapping inland. The British government wanted peace so its connection with south Iraq and India would be safe. We have a lot of documents from that period and I think a lot was British propaganda that said they came here to develop the area.”
Dr bin Seray, like many from Ras al Khaimah, believes the British response to alleged piracy was disproportionate, considering the suffering visited on the people of RAK.
“Even the excuse of the British government for the attack on RAK was that the Qawasim and people of RAK were pirates, but what did they do? They attacked a couple of British ships, nothing else,” he said. “And they [the British] attacked and killed a lot of people in RAK. The British destroyed all the forts, all the ruins, even the ships, everything was destroyed. They didn’t leave anything.”
Brig Saeed Laha, who runs his own museum in RAK and has spent years collecting the correspondence between the British and the Emirati rulers of the time, said 1809 was a tragedy that must be remembered.
“The people are defending themselves and their country,” said Brig Laha. “By sword, by old rifles, they fought one by one.”
Of course, he added, we may never know which version of history to trust.
“There are many stories and many songs about 1809 but you can’t believe everything,” he said. “The history is different from man to man.”
Source: The National
Photo: National Maritiem Museum
"Worst of the downturn over in Dubai": Sheikh Mohammed
Dubai has passed through the worst of the economic downturn, says Sheikh Mohammed bin Rashid al Maktoum, ruler of Dubai and prime minister of the UAE.
Dubai’s aim to become a global economic player is undiminished by the financial crisis and the emirate is well placed to pay its debts, says Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
The speech to foreign investors at an event organised by Bank of America Merrill Lynch came less than two weeks after Dubai raised US$1.93 billion (Dh6.97bn), the first new loan from international markets since the crisis hit last year.
“The worst is over and Dubai is now well placed,” Sheikh Mohammed said in his speech in Dubai. “The global economic crisis, despite its impact, will not deter Dubai’s ambitions of implementing its development plans.”
The ruler’s comments helped pushed Dubai shares to their highest level in a week.
Sheikh Mohammed also expressed confidence that investors would subscribe to a second $10bn bond expected within weeks, after the Central Bank bought the first $10bn in February.
The $20bn bond programme was designed to ease repayments on $85bn in debt built up during the building boom of the past decade. There has been speculation on whether private investors will be interested in the second half of the bond.
“Those who know me trust me when I say that the second part of the bond programme initiated by Dubai recently will be well received by subscribers, and will contribute to settling Dubai’s financial obligations in the coming years,” said Sheikh Mohammed.
He reiterated the strength of Dubai’s links with Abu Dhabi, and told critics of their relationship to “shut up”.
“I assure you that we will be there for each other when we need it,” Sheikh Mohammed said.
Abu Dhabi’s oil and sovereign wealth savings are considered an important support to Dubai’s ability to service its debt, especially since credit markets tightened with the global banking crisis.
Dubai launched the $20bn support fund in response to the financial crisis, which caused property prices to fall, drained liquidity from banks and led to thousands of job cuts.
Defending Dubai’s response to the crisis, Sheikh Mohammed said: “We preferred to wait rather than rush into action, because we are keen to ensure that our major enterprises are restructured to allow them to have the momentum and strength they require to cope with the realities of the new economy.”
In the biggest sale of Islamic bonds in the Gulf so far this year, Dubai raised $1.93bn last month. Economists estimated that Dubai would need to either repay or refinance $10.1bn in debts coming due next year. It will need $12.1bn in 2011, $15.2bn in 2012 and $4.8bn in 2013.
The Government said on Sunday it repaid a $1bn Dubai Civil Aviation Authority sukuk due on November 4. Nakheel, the Dubai Government-controlled developer, is expected to repay a $3.5bn Islamic bond next month with bondholders due to receive more than $4bn in principal and profit.
“The speech delivers important reassurances,” said Eckart Woertz, the programme manager of economics at the Gulf Research Centre in Dubai.
“However, markets don’t operate on political statements but on economic realities on the ground. In that sense, the repayment of developer Nakheel’s bond in December will be an important indication. Narrowing spreads show that the markets have regained confidence in Dubai’s ability to meet its obligations.”
Mr Woertz said a lack of information on Dubai’s debt situation had contributed to market scepticism in the past.
Source: The National 9 Nov 09
Dubai’s aim to become a global economic player is undiminished by the financial crisis and the emirate is well placed to pay its debts, says Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
The speech to foreign investors at an event organised by Bank of America Merrill Lynch came less than two weeks after Dubai raised US$1.93 billion (Dh6.97bn), the first new loan from international markets since the crisis hit last year.
“The worst is over and Dubai is now well placed,” Sheikh Mohammed said in his speech in Dubai. “The global economic crisis, despite its impact, will not deter Dubai’s ambitions of implementing its development plans.”
The ruler’s comments helped pushed Dubai shares to their highest level in a week.
Sheikh Mohammed also expressed confidence that investors would subscribe to a second $10bn bond expected within weeks, after the Central Bank bought the first $10bn in February.
The $20bn bond programme was designed to ease repayments on $85bn in debt built up during the building boom of the past decade. There has been speculation on whether private investors will be interested in the second half of the bond.
“Those who know me trust me when I say that the second part of the bond programme initiated by Dubai recently will be well received by subscribers, and will contribute to settling Dubai’s financial obligations in the coming years,” said Sheikh Mohammed.
He reiterated the strength of Dubai’s links with Abu Dhabi, and told critics of their relationship to “shut up”.
“I assure you that we will be there for each other when we need it,” Sheikh Mohammed said.
Abu Dhabi’s oil and sovereign wealth savings are considered an important support to Dubai’s ability to service its debt, especially since credit markets tightened with the global banking crisis.
Dubai launched the $20bn support fund in response to the financial crisis, which caused property prices to fall, drained liquidity from banks and led to thousands of job cuts.
Defending Dubai’s response to the crisis, Sheikh Mohammed said: “We preferred to wait rather than rush into action, because we are keen to ensure that our major enterprises are restructured to allow them to have the momentum and strength they require to cope with the realities of the new economy.”
In the biggest sale of Islamic bonds in the Gulf so far this year, Dubai raised $1.93bn last month. Economists estimated that Dubai would need to either repay or refinance $10.1bn in debts coming due next year. It will need $12.1bn in 2011, $15.2bn in 2012 and $4.8bn in 2013.
The Government said on Sunday it repaid a $1bn Dubai Civil Aviation Authority sukuk due on November 4. Nakheel, the Dubai Government-controlled developer, is expected to repay a $3.5bn Islamic bond next month with bondholders due to receive more than $4bn in principal and profit.
“The speech delivers important reassurances,” said Eckart Woertz, the programme manager of economics at the Gulf Research Centre in Dubai.
“However, markets don’t operate on political statements but on economic realities on the ground. In that sense, the repayment of developer Nakheel’s bond in December will be an important indication. Narrowing spreads show that the markets have regained confidence in Dubai’s ability to meet its obligations.”
Mr Woertz said a lack of information on Dubai’s debt situation had contributed to market scepticism in the past.
Source: The National 9 Nov 09
Tuesday, 10 November 2009
Japanese builders owed billions for Dubai work
Source: ArabianBusiness.com 8 Nov 09
================================
Japanese companies are owed billions for work done in Dubai, including the metro system, the Japanese consul general in Dubai has said. Japanese construction companies are facing "serious debt problems" amid issues with being paid for work done in Dubai, a top ranking official has said.
Seiichi Otsuka, the Japanese consul general in Dubai, claimed firms are still owed billions of dollars on projects that include the Dubai Metro and Palm Island, UAE daily The National reported on Sunday.
Japanese builders have played a major role in Dubai’s construction boom, spearheading work on the metro and other key projects in the emirate.
“Some Japanese construction companies are facing very serious debt problems,” Otsuka told the paper. “Some companies engaged with the construction of the Metro are facing some payment issues.”
Mitsubishi Heavy Industries (MHI), the lead company for the metro contract, are among those firms affected by non-payment on contracts, the paper added.
“MHI executed the construction of the Dubai Metro and some other contracts and we are still awaiting payment,” said Koji Okamoto, the general manager of the Middle East office of MHI in Dubai. The company has contracts in the Middle East valued at $150bn.
The Japanese government has not discussed the payment issues with the Dubai Government, nor has it intervened with financial assistance to those companies affected, Otsuka said.
“We are in a position to push both sides to make an amicable solution,” he said.
Otsuka told the paper it was difficult to put a figure on the outstanding debt as some payment was due shortly.
Last month, it was reported that some UK contractors were turning down invitations to chase work in Dubai because of continuing doubts over whether they will be paid on time.
According to Nelson Ogunshakin, the chief executive of the UK Association for Consultancy and Engineering (ACE), a large number of UK firms significant number of UK firms are still owed money by struggling developers in the emirate.
In July, the UK government reiterated its call for contractors to be paid by Dubai developers – and said it was "continuing to monitor the situation".
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Japanese companies are owed billions for work done in Dubai, including the metro system, the Japanese consul general in Dubai has said. Japanese construction companies are facing "serious debt problems" amid issues with being paid for work done in Dubai, a top ranking official has said.
Seiichi Otsuka, the Japanese consul general in Dubai, claimed firms are still owed billions of dollars on projects that include the Dubai Metro and Palm Island, UAE daily The National reported on Sunday.
Japanese builders have played a major role in Dubai’s construction boom, spearheading work on the metro and other key projects in the emirate.
“Some Japanese construction companies are facing very serious debt problems,” Otsuka told the paper. “Some companies engaged with the construction of the Metro are facing some payment issues.”
Mitsubishi Heavy Industries (MHI), the lead company for the metro contract, are among those firms affected by non-payment on contracts, the paper added.
“MHI executed the construction of the Dubai Metro and some other contracts and we are still awaiting payment,” said Koji Okamoto, the general manager of the Middle East office of MHI in Dubai. The company has contracts in the Middle East valued at $150bn.
The Japanese government has not discussed the payment issues with the Dubai Government, nor has it intervened with financial assistance to those companies affected, Otsuka said.
“We are in a position to push both sides to make an amicable solution,” he said.
Otsuka told the paper it was difficult to put a figure on the outstanding debt as some payment was due shortly.
Last month, it was reported that some UK contractors were turning down invitations to chase work in Dubai because of continuing doubts over whether they will be paid on time.
According to Nelson Ogunshakin, the chief executive of the UK Association for Consultancy and Engineering (ACE), a large number of UK firms significant number of UK firms are still owed money by struggling developers in the emirate.
In July, the UK government reiterated its call for contractors to be paid by Dubai developers – and said it was "continuing to monitor the situation".
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