Some stock markets suffer from a case of too much information. In the US, for example, even the smallest corporate news and most insignificant rumours are reported and scrutinised. In the UK, too, the grittiest details of the tiniest companies are invariably out there for investors to look at. It's as easy as pie, for example, to find out that the Headlam Group, a floor-coverings company worth a mere £155 million (Dh872.9m), derived 85 per cent of its revenues from business in the UK last year.
In the UAE, it's just the opposite. Virtually any investor, stockbroker, mutual fund manager or investment banker you ask can tick down the list of ways in which companies here don't disclose enough, aren't friendly to foreign investors or don't report on time. Market chatter and news stories are routinely denied by top executives, yet they sometimes turn out to be true, leading investors to lose trust in management and start believing the rumours.
Announced share buy-backs are often not completed. Press releases come out in Arabic only, leaving some investors to sort through news stories to get the information they need. The demand for more and better information, both from companies and the Government, could hardly be stronger.
"A colleague of mine prints out press releases and puts them into Google translator to get them in English," says Ali Khan, a director at Arqaam Capital, an investment bank in Dubai. "Those kinds of things are clearly a concern from a corporate governance and transparency point of view. What we're also lacking is a calendar of when various economic indicators are released, whether it's an index of real estate prices, consumer spending or sales of durable goods. I think that is a major gap, and it creates an environment for rumours, which is obviously not healthy."
The dearth of information is particularly frustrating because there is little doubt that this country's best companies are some of the strongest in the world, especially when it comes to construction and property development, in which the UAE's biggest players excel. Though they aren't all top-flight companies, and though some have run into trouble because of the global financial crisis, they nevertheless have undertaken some of the most ambitious projects in the world, both in size and architectural brilliance. Western developers can't hold a candle to their audacity and skill. And yet despite their obvious draws, these companies' stock prices have fallen dramatically in the past few months. The stock price of Emaar, the Middle East's largest developer and the force behind the Burj Dubai, the world's tallest building, has slid by more than 80 per cent this year.
It would be presumptuous to say stocks would have performed a lot better this autumn if companies were more open with investors. It is hard, after all, to separate the contagion of the global financial crisis from all the other factors that affect stock prices. But in the long run it's no exaggeration to say the biggest disease affecting our downtrodden markets - and the most significant challenge facing governments and regulators as they push Dubai as the region's financial capital - is one of too little information.
Unfortunately, old habits die hard. Companies in the UAE have grown used to raking in profits and seeing their stock prices rise even as information flows more like the drip-drip of a broken tap than a raging river. Yet amid the ongoing global financial turmoil, which has made the Dubai market index the seventh-worst performer in the world in the past three months, companies must get used to a new reality - one in which they deftly handle news and information.
Instead of threatening legal action and appealing to regulators if things go wrong - as Union Properties did this summer after Morgan Stanley issued a report suggesting property prices in Dubai might fall 10 per cent next year - companies should explain why what they are hearing is misguided, or confirm and dispense with negative information.
The markets in the UAE need more speech, more information, more news, more transparency. You can build the tallest building in the world, turn an open sea into an archipelago and bask in the glory of tax-free profits, but you won't be taken seriously by investors everywhere until you open your books. Shares entitle investors to ownership, and no reasonable shareholder will be satisfied until companies start treating them as owners.
But it would be irresponsible to end this column without taking stock of the progress made in the past year to improve transparency and investor relations. A new organisation called the Middle East Investor Relations Society was formed this summer, headed by Arif Amiri, Emaar's senior director of corporate governance. And there were intense discussions last week on the subject at the Dubai International Financial Centre. People are beginning to clamour for a bridge across the UAE's wide information gap.Yet until companies open up relations with investors and show that they have the guts to respond to bad news with grace instead of fury, the UAE will remain a scary place to invest.
afitch@thenational.ae
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Afghanistan fixtures
v Australia, today
v Sri Lanka, Tuesday
v New Zealand, Saturday,
v South Africa, June 15
v England, June 18
v India, June 22
v Bangladesh, June 24
v Pakistan, June 29
v West Indies, July 4
UAE currency: the story behind the money in your pockets
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
Manchester City transfers:
OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)
INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m
ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho
ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)
Uefa Champions League semi-finals, first leg
Liverpool v Roma When: April 24, 10.45pm kick-off (UAE) Where: Anfield, Liverpool Live: BeIN Sports HD Second leg: May 2, Stadio Olimpico, Rome
MATCH INFO
Karnataka Tuskers 110-5 (10 ovs)
Tharanga 48, Shafiq 34, Rampaul 2-16
Delhi Bulls 91-8 (10 ovs)
Mathews 31, Rimmington 3-28
Karnataka Tuskers win by 19 runs
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
What are the influencer academy modules?
Mastery of audio-visual content creation.
Cinematography, shots and movement.
All aspects of post-production.
Emerging technologies and VFX with AI and CGI.
Understanding of marketing objectives and audience engagement.
Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
More than 2.2 million Indian tourists arrived in UAE in 2023 More than 3.5 million Indians reside in UAE Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
Penguin
Daniella Weiss and Nachala Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
