I was driving down Sheikh Zayed Road the other evening when I heard clattering noises coming from the rear of my car.
I ignored it for a couple of kilometres, attributing the sounds to an errant bird hitting the window, perhaps, or some clutter in the boot shifting in an odd way.
But soon enough I was on the side of the road, looking bemusedly at a flat right-rear tyre as the ghostly shapes of trucks whizzed by in the night, their headlights casting moving shadows over the unfortunate scene.
After some rummaging around, I found the jack and stuck it under the spot the owner's manual called the "jack point". I pumped on the handle a few times before realising it wasn't working.
My mobile phone, coincidentally, had run out of battery power earlier in the day. So I waited, and waited. Eventually Shakeel, a Pakistani man driving a Toyota Hilux plastered with a blue Al-Futtaim Carillion logo on its side, came to my aid. He didn't speak much English but he had a jack. We changed the tyre and an hour later - and Dh200 (US$54.45) lighter - I was back on my way.
The story may be a typical one for regular users of the motorway between Dubai and Abu Dhabi. But it also illustrates, in microcosm, how a complex system like a car - or a financial machine - can be hampered by a seemingly incidental problem. Simple tools were there to fix the broken tyre but they didn't work.
Authorities in the UAE appear to recognise that a similar but far more complicated challenge lies before them in repositioning the country's financial and economic framework for a return to stability, growth and prosperity.
Despite Dubai's well publicised attempts to reduce its debt and restructure some financial obligations, the country has not suffered as much as many others.
At the same time, the Central Bank, the Ministry of Finance and the governments of individual emirates have made decisive and important moves to help put things on a sounder footing.
The Central Bank and the Abu Dhabi Government last year lined up $20 billion in financing for the Dubai Financial Support Fund, which is overseeing the distribution of assistance to state-owned enterprises. And the Ministry of Finance injected Dh120bn into the banking system last year.
With the country's financial engines in much better repair, the focus now is on the details of the system. And there the Government is also playing an active role in getting things moving.
Analysts say jump-starting Amlak and Tamweel, the UAE's two major Islamic mortgage providers, may be an important part of the country's economic tyre-changing.
The companies, both of them publicly listed, were very successful in Dubai's property boom, helping extend financing for apartments and villas to eager investors.
They were a crucial lubricant in the boom times, facilitating property purchases that would not have been possible without them and strengthening demand for property.
Amlak and Tamweel have about Dh20bn of Islamic mortgages on their books, according to annual financial statements for last year, comprising about a third of the UAE's estimated Dh60bn mortgage market.
But they have been in stasis for more than a year, after trading was halted and talks began about a merger in late 2008. Both have stopped making loans.
Continuing efforts to stimulate the property sector "will only bear fruit if funding is injected into Tamweel and Amlak, regardless whether as a merged entity or on a standalone basis", says Ghida Obeid, an analyst at Shuaa Capital in Dubai.
"Funding is key to Amlak and Tamweel to be able to tap into the mortgage lending again, which will have a ripple effect on the property market."
As the merger talks continue, led by a committee set up within the Ministry of Finance, Tamweel's chairman has said completing the transaction and re-starting the two companies was "vital for the economy".
"From our side we see some progress," Sheikh Khaled bin Zayed Al Nahyan, the chairman, said in January.
The drawn-out merger talks have been frustrating for investors who haven't been able to buy or sell shares for about 16 months. Yet discussions appear to be nearing a resolution, thanks to some generous plans to inject more money into the merged entity - possibly up to Dh2bn, according to Sheikh Khaled.
As Amlak and Tamweel are merged, the Government of Abu Dhabi has already stepped in to help fill the gap they left, creating Abu Dhabi Finance last year to offer mortgages on numerous projects in the capital.
Low interest rates have helped to stimulate the property sector there and, once Amlak and Tamweel get back to business, the UAE will have a strong pair of home finance companies to bolster the market.
Meanwhile, despite their struggles, there are some bright spots for Amlak and Tamweel. Amlak may not be making loans any more and defaults may be increasing but the company, astoundingly, is still making money on loans to consumers. Last year it reported Dh89 million in profits on retail loans despite large write-downs to account for defaults.
"From a core business perspective, Amlak is still being able to generate reasonable margins on its existing loan book even though we are seeing more pressure in terms of quality," Ms Obeid says.
"Going forward, Amlak's mortgage portfolio is expected to continue tightening yet will continue to generate positive operating income."
That's a rare ray of sunshine for a company that has reported losses for the past few quarters.
It is likely to be a rough journey ahead, to be sure, but with the right tools, a quick tyre change could soon help get the companies - and the local property market - back on the road.
afitch@thenational.ae
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
UAE currency: the story behind the money in your pockets
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The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The schedule
December 5 - 23: Shooting competition, Al Dhafra Shooting Club
December 9 - 24: Handicrafts competition, from 4pm until 10pm, Heritage Souq
December 11 - 20: Dates competition, from 4pm
December 12 - 20: Sour milk competition
December 13: Falcon beauty competition
December 14 and 20: Saluki races
December 15: Arabian horse races, from 4pm
December 16 - 19: Falconry competition
December 18: Camel milk competition, from 7.30 - 9.30 am
December 20 and 21: Sheep beauty competition, from 10am
December 22: The best herd of 30 camels
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
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
AL%20BOOM
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UAE currency: the story behind the money in your pockets
HOW TO WATCH
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UAE central contracts
Full time contracts
Rohan Mustafa, Ahmed Raza, Mohammed Usman, Chirag Suri, Mohammed Boota, Sultan Ahmed, Zahoor Khan, Junaid Siddique, Waheed Ahmed, Zawar Farid
Part time contracts
Aryan Lakra, Ansh Tandon, Karthik Meiyappan, Rahul Bhatia, Alishan Sharafu, CP Rizwaan, Basil Hameed, Matiullah, Fahad Nawaz, Sanchit Sharma
MATCH INFO
Burnley 1 (Brady 89')
Manchester City 4 (Jesus 24', 50', Rodri 68', Mahrez 87')
The fake news generation
288,000 – the number of posts reported as hate speech that were deleted by Facebook globally each month in May and June this year
11% – the number of Americans who said they trusted the news they read on Snapchat as of June 2017, according to Statista. Over a quarter stated that they ‘rarely trusted’ the news they read on social media in general
31% - the number of young people in the US aged between 10 and 18 who said they had shared a news story online in the last six months that they later found out was wrong or inaccurate
63% - percentage of Arab nationals who said they get their news from social media every single day.
Sole survivors
- 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.
