Restrictive labour rules are the biggest hurdle to doing business in the UAE, a new survey of executives shows, even as overall confidence in the economy improves.
Companies have become significantly more optimistic about business conditions since the depths of the financial crisis, according to the latest survey by the management consultancy Oliver Wyman and the polling firm Zogby International. But confidence of senior executives in government policies has dipped in the past year.
The survey last month polled 141 senior executives in the UAE and Saudi Arabia about their confidence in the business outlook and the state of government policy.
A total of 45 per cent of UAE executives polled felt business conditions had improved, an increase by 30 percentage points on the number of positive responses in October 2009. In Saudi Arabia, 78 per cent of businesses believed conditions had improved.
Oliver Wyman intends to use the results to provide feedback to the Federal Government about priorities for policy reform.
"In a region with US$100 [Dh367.27] oil price and continued double-digit growth, a lot of the policymaking questions get pushed under the table," said John Turner, a partner at Oliver Wyman in Dubai. "Before oil prices again go over $100 and the coffers are refilled, this is a prime time to address these policy issues revealed through the financial crisis."
The Government has said it plans to relax rules surrounding the private sector to create a more flexible environment to attract foreign investment and create jobs. Laws are in the pipeline to allow greater foreign ownership of companies and some labour rules have also been reformed in recent weeks.
The results of the survey, however, suggest companies feel more needs to be done.
More than half of surveyed executives in the UAE said their confidence in government institutions had either been moderately or greatly undermined in the past year. In Saudi Arabia the figure was closer to 40 per cent.
The drop in business confidence may be related to unhappiness with important systemic issues, Oliver Wyman said.
Restrictive labour regulations were cited as a hurdle by 43 per cent of UAE executives and 39 per cent in Saudi Arabia.
Visa rules for expatriate workers and families, unrealistic nationalisation quotas and complex hiring or firing restrictions were seen as challenges surrounding labour regulations.
Limited access to financing was cited as an issue by 34 per cent of UAE executives and 30 per cent of Saudi executives.
Many companies have struggled to obtain finance since banks tightened lending conditions during the financial crisis. Loans turning sour caused lenders to become more risk averse.
Excessive collateral requirements and high interest rates were viewed by respondents as the biggest issues concerning access to finance.
The survey also shed light on what businesses believe to be the biggest threat to business conditions. Nearly three-quarters of UAE executives said outside macro-economic shocks were the biggest threat. Terrorism, regional military conflict and ethnic or religious tensions were viewed as far smaller risks.
The poll is conducted every six months across private and public-sector firms.
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
The Bio
Favourite Emirati dish: I have so many because it has a lot of herbs and vegetables. Harees (oats with chicken) is one of them
Favourite place to go to: Dubai Mall because it has lots of sports shops.
Her motivation: My performance because I know that whatever I do, if I put the effort in, I’ll get results
During her free time: I like to drink coffee - a latte no sugar and no flavours. I do not like cold drinks
Pet peeve: That with every meal they give you a fries and Pepsi. That is so unhealthy
Advice to anyone who wants to be an ironman: Go for the goal. If you are consistent, you will get there. With the first one, it might not be what they want but they should start and just do it
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Match info
Deccan Gladiators 87-8
Asif Khan 25, Dwayne Bravo 2-16
Maratha Arabians 89-2
Chadwick Walton 51 not out
Arabians won the final by eight wickets
The specs
Price, base / as tested Dh1,100,000 (est)
Engine 5.2-litre V10
Gearbox seven-speed dual clutch
Power 630bhp @ 8,000rpm
Torque 600Nm @ 6,500rpm
Fuel economy, combined 15.7L / 100km (est)
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.
Representing%20UAE%20overseas
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Miguel Cotto world titles:
WBO Light Welterweight champion - 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017