Business sentiment among Dubai traders is at its lowest in five years, prompted by concerns about instability in financial markets, project cancellations and the restructuring of Dubai World.
The findings are in a survey conducted by the Dubai Chamber of Commerce and Industry (DCCI) in the three months ending in January. Its sentiment index fell to 5.7 from 5.9 a year earlier.
Although overall confidence dropped, more than a third of the companies surveyed believed sales would improve this year.
Volatility in international financial markets and the delay or cancellation of projects were cited by respondents as the two main reasons for their negative outlook. Dubai World's efforts to restructure US$26 billion (Dh95.49bn) of debt and the restrictive policies of banks for providing credit were also given as factors.
The survey results reflected the changing economic conditions that Dubai traders would have to adapt to in the post-financial crisis era, said Hamad Buamim, the director general of the DCCI.
"We are changing from a supply-driven economy to a demand-driven economy," said Mr Buamim. "The issue of controlling costs is more important."
More than half of the firms surveyed believed it would take more than a year for the liquidity crunch to ease. A total of 45 per cent said the financial crisis would end within a year, with just 4 per cent believing it would be over by the end of the first quarter.
Smaller companies with less than 10 employees were more pessimistic than larger companies.
Lower profits and lower sales were cited by companies as the biggest impact of the financial crisis.
Generally, companies operating within the consumer goods and general trade industries displayed more optimism than those in other sectors. Across product lines, household goods were seen as showing the least signs of a recovery in demand. Most demand was expected to be seen for general trade items.
About 59 per cent of the companies surveyed believed that obtaining credit would be harder this year, compared with last year. Securing letters of credit from buyers and working capital lines of credit were highlighted as the most pressing financial needs of companies.
Reducing visa fees, introducing easier rental payment schemes and providing comprehensive financial support were among suggestions on how the Government could make business easier for traders.
TechniLine Electronics, an importer and distributor of sound systems, has seen its turnover drop 15 per cent since the financial crisis emerged.
"We are cautious," said Bhagwan Shivlani, the managing director of the company based in Deira. "We've put on hold growth plans until the economy settles down. We've found while our business is down our business expenses, including rental charges, are up."
The DCCI survey was conducted between November and January and covered a sample of 1,400 members operating in the trading sector.
The results of the survey were released on the same day as another report that showed confidence among investors in the GCC declined last month.
The investment bank Shuaa Capital said its GCC investor confidence index fell 8.9 points last month, the second consecutive monthly fall, as a lack of clarity on Dubai World's debt restructuring weighed on investor sentiment.
@Email:tarnold@thenational.ae
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
Favourite quote: “Be the change you wish to see in the world,” Gandi
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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Director: Sharat Katariya
Starring: Varun Dhawan, Anushka Sharma, Raghubir Yadav
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Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Landfill in numbers
• Landfill gas is composed of 50 per cent methane
• Methane is 28 times more harmful than Co2 in terms of global warming
• 11 million total tonnes of waste are being generated annually in Abu Dhabi
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• 50 per cent of Abu Dhabi’s waste is from construction and demolition