Abu Dhabi tops the global rankings for liveability in the Middle East, followed by Dubai. Courtesy: DCT Abu Dhabi
Abu Dhabi tops the global rankings for liveability in the Middle East, followed by Dubai. Courtesy: DCT Abu Dhabi
Abu Dhabi tops the global rankings for liveability in the Middle East, followed by Dubai. Courtesy: DCT Abu Dhabi
Abu Dhabi tops the global rankings for liveability in the Middle East, followed by Dubai. Courtesy: DCT Abu Dhabi

S&P assigns investment grade rating to Emirates Development Bank


Sarmad Khan
  • English
  • Arabic

S&P Global Ratings has assigned an "AA-" investment grade rating to the UAE-owned Emirates Development Bank, citing the strength of its capital base and expected growth in its lending operations.

The stable outlook reflects the rating agency’s view of the credit standing of the country's federal government, EDB said on Monday.

The bank, which was also assigned a "gcAAA" long-term GCC regional scale rating by S&P, is well-positioned for growth. It has committed to maintain a robust capital base backed by the federal government.

“The ratings play a very important step for EDB’s future strategy and aspirations,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and EDB chairman.

This rating also “reinforces the bank’s position and ability to mobilise financial resources” and expand its funding and loans operations as it plays its part in the UAE’s economic diversification, he said.

S&P’s rating action comes after Fitch Ratings affirmed "AA-" issuer default ratings with a stable outlook for EDB last month.

The rating agency said it “believes EDB is well positioned for growth” and has “good access to various funding and liquidity sources”.

“EDB has also been authorised by the government to issue bonds on behalf of other federal entities within the overall borrowing plan of $5 billion,” said S&P.

“However, there are no current plans to do so.”

The lender, which was founded in 2011 through the merger of Emirates Industrial Bank and the Emirates Real Estate Bank, aims to provide Dh30 billion ($8.17bn) in financing over the next five years over the next five years to support the UAE's efforts to strengthen its industrial sector. It plans to fund industries such as health care, infrastructure, food security and technology and help to create 25,000 jobs during the period.

The UAE, the Arab world’s second-biggest economy, unveiled Operation 300bn – a strategy to raise the industrial sector's contribution to gross domestic product from Dh133bn to Dh300bn by 2031.

This involves the creation of about 13,500 new companies in the industrial sector measures to raise industrial research and development spending from 1.3 per cent to 2 per cent of GDP by 2031.

“The ratings are a major milestone and recognition of EDB’s strong financial profile, as well as an endorsement of its prudent future growth plans and sound risk management practices,” said Ahmed Al Naqbi, who took over as chief executive of EDB in May.

The lender said it will continue to follow its “new strategic mandate” to support the UAE’s diversification through the funding of individual clients, small and medium enterprises and companies in priority industrial sectors in the UAE.

EDB revealed plans in April to partner with five banks to boost lending and raise the growth of the country's industrial sector.

Last week, it signed an agreement with Commercial Bank of Dubai to offer credit guarantees and co-lending to SMEs in priority sectors.

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Jetour T1 specs

Engine: 2-litre turbocharged

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The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

McIlroy's struggles in 2016/17

European Tour: 6 events, 16 rounds, 5 cuts, 0 wins, 3 top-10s, 4 top-25s, 72,5567 points, ranked 16th

PGA Tour: 8 events, 26 rounds, 6 cuts, 0 wins, 4 top-10s, 5 top-25s, 526 points, ranked 71st

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

Uefa Nations League: How it Works

The Uefa Nations League, introduced last year, has reached its final stage, to be played over five days in northern Portugal. The format of its closing tournament is compact, spread over two semi-finals, with the first, Portugal versus Switzerland in Porto on Wednesday evening, and the second, England against the Netherlands, in Guimaraes, on Thursday.

The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.

Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.

UAE currency: the story behind the money in your pockets
Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

Education reform in Abu Dhabi

 

The emirate’s public education system has been in a constant state of change since the New School Model was launched in 2010 by the Abu Dhabi Education Council. The NSM, which is also known as the Abu Dhabi School Model, transformed the public school curriculum by introducing bilingual education starting with students from grades one to five. Under this new curriculum, the children spend half the day learning in Arabic and half in English – being taught maths, science and English language by mostly Western educated, native English speakers. The NSM curriculum also moved away from rote learning and required teachers to develop a “child-centered learning environment” that promoted critical thinking and independent learning. The NSM expanded by one grade each year and by the 2017-2018 academic year, it will have reached the high school level. Major reforms to the high school curriculum were announced in 2015. The two-stream curriculum, which allowed pupils to elect to follow a science or humanities course of study, was eliminated. In its place was a singular curriculum in which stem -- science, technology, engineering and maths – accounted for at least 50 per cent of all subjects. In 2016, Adec announced additional changes, including the introduction of two levels of maths and physics – advanced or general – to pupils in Grade 10, and a new core subject, career guidance, for grades 10 to 12; and a digital technology and innovation course for Grade 9. Next year, the focus will be on launching a new moral education subject to teach pupils from grades 1 to 9 character and morality, civic studies, cultural studies and the individual and the community.

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Manchester United v Club America

When: Thursday, 9pm Arizona time (Friday UAE, 8am)

Dubai Women's Tour teams

Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport 
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club 
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team