DP World, the world’s fourth biggest port operator, is undeterred by developments in Djibouti and the company which recorded 7.3 per cent growth in 2017 net income, is looking for more investment opportunities in Africa.
“Africa is a very important market,” DP World’s group chairman and chief executive, Sultan Bin Sulayem said in Dubai on Thursday. “We know in Africa there are risks and like in any business there is nothing without risks but the opportunities are big. As a company, we are better positioned than many to invest in Africa.”
The Nasdaq Dubai-listed company, whose 2017 profitability was boosted by strong performance in its core regions - the Middle East, Europe and Africa; Asia Pacific and Indian subcontinent; and Australia and Americas – has faced some challenges in its African operations this year.
Last month, the port operator said Djiboutian authorities took control of the Doraleh Container Terminal from its fully-owned entity that designed, built and operated the terminal after winning the concession in 2006.
The company has subsequently commenced arbitration proceedings before the London Court of International Arbitration to protect its interests, it said in its February 23 statement.
Mr Bin Sulayem said Djibouti’s arbitrary move does not bode well for the country and continent.
“As far as Djibouti is concerned, what they have done is unfortunate. This is sad thing really… the action they have taken,” he said. “It will basically make it more difficult to attract investment in general and banks will be very careful in financing in Africa.”
Mr Bin Sulayem downplayed the headwinds in Republic of Somaliland, another African market where the company is investing to develop the Port of Berbera. The disagreement between the governments of Somalia and Somaliland has worsened. Somalia's lower house of Parliament rejected a tripartite deal by DP World to grant Ethiopia a 19 per cent stake in the port. Mogadishu contests the way the deal was struck, while Somaliland said it has the right to the enter into any commercial agreement.
“It doesn’t really concern us because Somali Parliament has no [jurisdiction],” he said of the parliamentary vote this week in his first public remarks on the ongoing tiff between the two African governments. “They can only make noise and they can only make statements but actually on the ground Berbera [Somaliland] has agreements with many countries around the world, with many companies and it is within their laws.”
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Read more:
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DP World expects 10% growth in 2017 gross container volumes
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Within Africa, DP world is looking at Kenya for investment opportunities and is awaiting Kenyan government’s decision to privatise Mombasa port facilities. Ports in war-torn Yemen are also on DP world’s radar and it would look at expansion possibilities once the country is safe enough for operations, he said.
"As a company they did really well as in any business sometimes expansion efforts work and sometimes they don’t. DP World has successfully expanded its business in many geographies and became a global player," said Tariq Qaqish, managing director of asset management at Dubai-based financial services firm Menacorp. "Africa does have the potential of growth and if you have support of African governments the rewards are there. I think in each market there has to be evaluated individually."
The company earlier on Thursday said its full-year profit attributable to shareholders before separately disclosed items climbed to $1.2 billion on the back of market share gain and strong volume growth in its global portfolio.
Improvement in global trade is expected to keep the company growing "ahead of the market” as contributions from new developments rise in 2018, the company said in a bourse filing. DP world recorded a year-on-year 15.1 per cent growth in net income on a like-for-like basis at constant currency. Its revenue for the period advanced 13.2 per cent to $4.7bn, while cash from operating activities for the period also climbed to $2.4bn, up from $2bn recorded at the end of 2016, it said.
“Our significant cash generation and investment partnerships, leave us with a strong balance sheet and flexibility to capitalise on the growth opportunities in the industry and deliver enhanced shareholder value over the long term,” Mr Bin Sulayem said.
“We have made an encouraging start to the year with current trading in line with expectations. As we look ahead into 2018, geopolitical headwinds in some regions pose a challenge but we expect to continue to grow ahead of the market and see increased contributions from our recent investments.”
Port operators globally struggled to maintain profitability in the first half of 2017 as global trade expansion was crimped by slower economic growth. Economic activity and trade momentum picked up in the latter half of 2017 as oil prices rose, helping companies such as DP world to improve their growth forecast on the back of increased gross container volumes.
DP World handled 10.1 per cent more in gross container volumes on a reported basis in 2017 and expects the volume expansion to continue in 2018. The company handled 70.1 million twenty-foot equivalent units (TEUs) last year amid broad-based growth across all regions. In the UAE, the company handled 15.4 million TEUs in 2017, up by 4 per cent year-on-year, it said in a February statement.
Beyond Africa, the company is committed to investments in India and is evaluating a deal in Russia, he said without giving the size of potential investment in or the timeline of Russian deal.
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The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
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CREW
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Basquiat in Abu Dhabi
One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi.
The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier.
It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.
“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi.
Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October
Naga
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French Touch
Carla Bruni
(Verve)
How they line up for Sunday's Australian Grand Prix
1 Lewis Hamilton, Mercedes
2 Kimi Raikkonen, Ferrari
3 Sebastian Vettel, Ferrari
4 Max Verstappen, Red Bull
5 Kevin Magnussen, Haas
6 Romain Grosjean, Haas
7 Nico Hulkenberg, Renault
*8 Daniel Ricciardo, Red Bull
9 Carlos Sainz, Renault
10 Valtteri Bottas, Mercedes
11 Fernando Alonso, McLaren
12 Stoffel Vandoorne, McLaren
13 Sergio Perez, Force India
14 Lance Stroll, Williams
15 Esteban Ocon, Force India
16 Brendon Hartley, Toro Rosso
17 Marcus Ericsson, Sauber
18 Charles Leclerc, Sauber
19 Sergey Sirotkin, Williams
20 Pierre Gasly, Toro Rosso
* Daniel Ricciardo qualified fifth but had a three-place grid penalty for speeding in red flag conditions during practice
Key fixtures from January 5-7
Watford v Bristol City
Liverpool v Everton
Brighton v Crystal Palace
Bournemouth v AFC Fylde or Wigan
Coventry v Stoke City
Nottingham Forest v Arsenal
Manchester United v Derby
Forest Green or Exeter v West Brom
Tottenham v AFC Wimbledon
Fleetwood or Hereford v Leicester City
Manchester City v Burnley
Shrewsbury v West Ham United
Wolves v Swansea City
Newcastle United v Luton Town
Fulham v Southampton
Norwich City v Chelsea
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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
KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.