Long-term view to weather the economic storm



Sovereign debt threatens to burst the stitches of the world's banking system, and global financial markets are responding with alarming volatility. Even more ominous is the news that the world's biggest banks, worried of mountains of bad debt, are reportedly again growing wary of lending to each other.

And this time many governments, waist-deep in debt themselves, would be more hard-pressed to provide bailouts and stimulus spending. So a new crisis could be more severe than the one triggered by the collapse of Lehman Brothers three years ago next week.

European and US political leaders have been staring at this growing credit crisis for months like deer mesmerised by headlights, grudgingly making only minimal moves toward solving the problem.

In Europe, mortgaged economies in Greece, Portugal, Italy, Ireland and Spain just are not going to pay back their debts by pinching pennies. As the euro zone scrambles to cobble together bailouts, the failure to face up to restructuring is causing uncertainty. And uncertainty is breeding the fear that can make this a self-fulfilling prophecy.

But for the UAE and the Gulf region, the crisis is neither direct nor imminent. However the global economy fares, there will be demand for oil, although a new recession would slash oil prices.

Already some regional economic indicators are not encouraging. As The National's Business section reports today, an index of corporate purchasing activity in the UAE sank dramatically in August compared to July. And newly published World Economic Forum rankings on competitiveness - a good measure of the capability to respond as economic conditions change - had the UAE slipping from 25th last year to a still-respectable 27th out of 142.

But the metrics do not tell the whole tale. The UAE, and Abu Dhabi in particular, began years ago to find ways to diversify the economy away from just oil extraction.

The oil sector now accounts for less than half of Abu Dhabi's gross domestic product, which is indicative of a nationwide move away from reliance on natural resources. Policies on education, infrastructure, the quest for foreign investment, energy supply, the growth of free zones and other issues have been welded into a comprehensive strategy for diversified development.

With 20-20 hindsight we might wish these plans were further advanced, but there is a solid footing to weather an economic storm if it comes.

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

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

UAE squad

Humaira Tasneem (c), Chamani Senevirathne (vc), Subha Srinivasan, NIsha Ali, Udeni Kuruppuarachchi, Chaya Mughal, Roopa Nagraj, Esha Oza, Ishani Senevirathne, Heena Hotchandani, Keveesha Kumari, Judith Cleetus, Chavi Bhatt, Namita D’Souza.

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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SPECS

Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now