A List of Major Gulf Projects June 5, 2008
Posted by mylastresort in analysis, bahrain, qatar, saudi arabia.Tags: Abu Dhabi, Al-Uqair Tourism Development Project, Aldar - Yas Island Project, construction, Culture Village Project, Dubai, Duqm New Town Project, Forecast, King Abdullah Financial District Project, kuwait, Masdar City Project, Mohammed bin Rashid Gardens Project, oman, Outlook, Projects, Sama Dubai-The Lagoons Project, saudi arabia, Tatweer Badawi Project, uae, United Arab Emirates
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Here is a list of major projects currently underway in the Gulf:
Kuwait
Silk City Project, Value $77 billion
Planned completion: Q4 2030
Current stage: Planning
100% Tax on Luxury Goods June 4, 2008
Posted by mylastresort in analysis.Tags: analysis, bahrain, Doha, Dubai, gcc, Gulf Cooperation Council, kuwait, Markets, oman, qatar, saudi arabia, Tax, taxation, uae, Value added tax, VAT
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The Gulf Cooperation Council (GCC) is planning to introduce up to 100% tax on ‘harmful products’ & luxury goods likely to include cigarettes, luxury cars, private planes, & yachts, among others. A team has been commissioned to list items that could be liable to the new tax from 2012. The GCC team looking into the proposed taxes would next meet in October. The GCC has already set 2012 as the deadline for implementing a new value added tax system.
Each of the Gulf countries suffers from lack of productivity and sophisticated staff, including a very bureaucratic environment in the public sector. The GCC is just that multiplied by 6, therefore I doubt any decision will be made anytime in the next 20 years regarding taxation (if anything useful).
Some notes to consider:
The rich - are the powerful - therefore taxing their latest toys will not make them very happy buying in their own countries and will therefore register items across borders. A good example would be to buy the yacht and register it in Yemen, for instance, and then take it to Dubai marina. This is a simple way to avoid taxes. This will move the companies to areas where the wealthy will pay a more reasonable rate than the 100%.
There will be an increase of ‘wastas’ (quanxi) at the ports and customs to avoid paying the tax. We are already bombarded by having to payoff officials to get the latest DVD, book or game in to the country just imagine bribing one of them to bring in a Ferrari, this will take things to a new extreme.
The Governments DO NOT need any extra income. The future plans and growth in Dubai, Bahrain, and Qatar all involve a marketing plan that clearly states ‘a tax free’ incentive for company’s & employees to relocate. Although everyone knows the slow pace of government policies any threats such as this will deter future companys/individuals from relocating.
Oman index at record highs June 2, 2008
Posted by mylastresort in analysis.Tags: Amwal Investment, Gulf, investment, oman, Omani Index, Ominvest, Record, Shantonu Roy, Shell Oman Marketing, Stocks
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“There are reports in local newspapers that Voltamp’s IPO is oversubscribed six times”- Shantonu Roy, Amwal Investment
Gulf bourses gain $60 bln in April April 27, 2008
Posted by mylastresort in analysis, bahrain, saudi arabia.Tags: Dubai, kuwait, Market Cap, Money, oman, qatar, Stocks
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Gulf bourses shrugged off global market turmoil and surged ahead by more than $60 billion in April despite fluctuations in the previous month. The figures show that the UAE, Saudi Arabia, and Qatar were by far the best performers. Starting at $1 trillion during the first of April, the market caps in the GCC grew to $1.126 trillion by todays (Sunday’s) opening.
“This year is expected to be a good one based on the market and economic fundamentals. But you have to expect instability from time to time because of speculation in some markets, mainly in Saudi Arabia and UAE bourse.”
- In a report by the AMF
Here is a detailed list of the exchanges increases (by region):
- Dubai’s International Financial Exchange (DIFX) – $8 billion
- Qatar’s Doha Securities Market – $19.8 billion
- Kuwait Stock Exchange – $1.2 billion
- Oman Stock Exchange- $2 billion
- Bahrain Stock Exchange- $1.5 billion
“All GCC markets have emerged as gainers so far this year and this shows their exposure to overseas markets is minimal… Another reason is that many foreigners are scared of volatile global markets and are finding a safe haven in this region… Since most of the listed companies are expected to make higher profits this year, the investors’ gains will be more”
- Ziad Dabbas, National Bank of Abu Dhabi.
Oman inflation figures April 13, 2008
Posted by mylastresort in analysis.Tags: CPI, February, January, oman, Omani, Riyal
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Omani inflation has shown that the annual inflation rate has increased, in February, to 11.11% from 10.12% in January. The jump was mainly driven by 19.6% jump in ‘food and beverage’ costs. A rise in rent was reported at 14.1%. The Gulf countries have all the warning signs readily available to them to act NOW in an attempt to save their economies from an apparently impeding crisis.
Gulf currencies collapse 40% April 8, 2008
Posted by mylastresort in analysis, bahrain, qatar, rumors, saudi arabia.Tags: AED, bahrain, BHD, Central Banks, Currencies, Dirham, Dollar, Dubai, gcc, Gulf, kuwait, KWD, oman, OMR, qatar, Revaluation, saudi arabia, Saudi Riyal, US
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Many have called for a revaluation of Gulf currencies from the historical dollar peg. The flood of liquidity and rapid inflation has been hailed as a warning to the falling interest rates, decline of the US Dollar, and record high oil. The loss in value of the Gulf currencies has been partially responsible in the rise of inflation. The inflationary pressures, which should govern an increase in rates by the central banks, have created markets so liquid that deposits are being quoted at negative rates. The list below shows the Gulf currencies depreciation, in value, due to the Dollars decline.
Gulf currency reform meeting today April 6, 2008
Posted by mylastresort in analysis, bahrain, qatar, saudi arabia.Tags: Arab, Central Banks, Dirhan, Governers, Gulf, oman, qatar, Reform, Riyal, saudi arabia, Single currency, uae
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The Gulf central bank governers last meeting was six months ago. In the meeting the governers decided not to revalue their currencies in anticipation of a single currency union (plan of 2010). Since their meeting:
- UD Dollar has fallen 14% against the Euro
- US Federal Reserve lowered rates 6x
- Inflation in the Gulf has almost doubled
As Saudi Arabia claims that it has no currency reform plans, Qatar and UAE, have publicily announced that they are rethinking their pegs. It will be interesting to see how todays meeting turns out…
Gulf central bankers to discuss revaluation April 3, 2008
Posted by mylastresort in bahrain, qatar, saudi arabia.Tags: Arab Gulf, bahrain, Bank, Central Bank, Doha, Governers, Gulf, inflation, kuwait, Meeting, oman, qatar, Revaluation, Revalue, uae, United Arab Emirates, US Dollar
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On April 6 and 7 Gulf central bank governers plan to meet to discuss removing obstacles to planned monetary union at a meeting in Doha, Qatar. The Gulf countries are under pressure to revalue in the quickest time to minimize effects on their economies. The countries are planning a joint revaluation against the dollar in an effort not to hinder plans for a single currency in 2010.
The implementation of new regulations along with discussions into the depegging. Weak Gulf currencies are dettering foreign labor from choosing jobs in the region. Recently foreign workers called a strike to demand higher wages as inflation soars.
“The meeting will look into the matter of preparing for monetary union between states of the Gulf Cooperation Council, and ways to speed up performance and remove obstacles”
- Central bank of Kuwait statement
The 6 Arab gulf countries will be meeting to discuss the revaluation of their currencies against the US Dollar, amid soaring inflation and falling interest rates.
Asian average monthly salary – chart April 2, 2008
Posted by mylastresort in analysis, bahrain, qatar, saudi arabia.Tags: Arab, Asian, Average, Average wages, Averages, bahrain, Employee, Expat, Expatriate, Gulf, kuwait, Monthly, Monthly Salary, oman, qatar, saudi arabia, Wages
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A chart developed by EDB last month shows the average monthly salary for Asian expatriates in the Arabian Gulf. I am not familiar with ‘EDB’.
The accuracy of the data is questionable.
