DUBAI // The UAE can learn lessons from a report into fraud and corruption in the global building industry. The report says it must be eradicated to keep the sector growing.
Time for a New Direction: Fighting Fraud in Real Estate and Construction, published by consultancy Grant Thornton, calls for urgent action on a problem that is estimated to cost companies from 5 to 10 per cent of revenues, or about US$1 trillion (Dh3.67tn) worldwide.
"More companies need to recognise that fraud and corruption has a real cost," said Danny McLaughlin, partner and head of the fraud and forensic division at Grant Thornton UAE.
“Corruption and the payment of commissions is often seen as the cost of doing business. This does not have to be the case.”
Grant Thornton said the UAE is not exempt from fraud threats. It is a pervasive issue and can cost business greatly.
With Dubai making a strong case to host Expo 2020 and Qatar preparing for the Fifa World Cup in 2022, there has been a resurgence in building in the GCC.
The report followed research in Australia, Canada, India, the US and the UK. It said fraud and corruption posed significant threats to building companies’ finances and reputations, and could hinder growth.
It also recommended measures to tackle the problem.
Building companies should ensure they are up to date with information technology.
Frauds should be prosecuted as a deterrent and companies should introduce an internal process to find the best way of dealing with the problem.
“In business, information technology and the internet offer both threats and opportunities,” Mr McLaughlin said.
“Better access to information and data offers great improvements in efficiency and obtaining value for money, but fraudsters can also misuse such technology.
“From a business perspective, the use of data analytics can help not only to identify and thereby prevent fraud, but also allows companies, particularly in the construction sector, to spot poor procurement or contracting practices.”
The report says with the building industry continuing to recover from the global financial crisis, incidence of fraud will also increase.
Companies became more diligent with their finances during the downturn but this level of prudence is now more difficult and arguably less of a priority, said Grant Thornton.
“As a first step, boards should get the subject of fraud on their agenda and board members and non-execs should take real ownership of the issue,” Mr McLaughlin said.
nhanif@thenational.ae
THE SPECS
Engine: 4.4-litre V8
Transmission: eight-speed automatic
Power: 523hp
Torque: 750Nm
Price: Dh469,000
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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.
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Killing of Qassem Suleimani
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
