Regulating the People Dealers

Finally,some movement on this.

DUBAI: The UAE government has announced plans to shut down the labour recruitment agencies, which charge labourers heavily to arrange for jobs and visas in the country, leaving them with large debts before they even start work.

More here and here.

Dubailand - Disneyland on Steroids

There is no doubt that Dubailand will compete with Eurodisney when it is launched. But you worry when the CEO makes comments like this:

Dubailand's Chief Executive Officer, Salem Bin Dasmal...went on to describe Dubailand as 'Disneyland on steroids'.

It's fine to talk of such comments in jest, but when the CEO does it, you start to worry whether he is ramping it up or indeed, what the negative results of steroids are! It's not an appropriate comment.

The Release

If Naji Rashid al-Nuaimi has been released, this is obviously very good news, but it was as a direct result of meeting the terrorist's demands. Some countries are against doing this, with Britain as a notable example. Where does this leave the UAE in the perception of terrorists? The terrorists canattempt to do as they please to some degree. Either that or as a result of this, the UAE will distance itself from Iraq. There is no best method of dealing with terrorists, in whatever form. But the people they affect can not be ignored.

The US Dollar Decline

I've been keeping a more active watch on the US Dollar recently, as its crash will have a detrimental effect on the Dirham earned here. And while the effects of the decline have a direct effect on numerous issues in the UAE and there are contact calls to appreciate the dirham, it's worth understanding the basics behind what is going wrong in the US. This is it:

Behind the problems of the dollar lies the huge and growing US trade deficit, and the large Federal budget deficit.

The BBC piece provides a basic understanding,if you are interested.

Consumer Confidence

These "surveys" that say that they reflect public sentiment sometimes amount to propoganda. From what I have heard from officials, people on the street, media etc - it appears that people are hopeful over the medium term but are a little worried over the next 2 years.

What struck me is particularly odd was this:


In the latest survey UAE consumer sentiment on employment grew from 69.5 in the second half of 2005 to 77.4, while positive sentiment on Quality of Life jumped from 65 to 74.

I mean compared to the last survey, did they just decide to intervie the new guys at DIFX? I'd be interested in seeing the weighting on the factors, the sample base and what they actually asked. Too often we just get fed information which is just not accurate.

Barclays Dubai Mortgages

The deal that ties Barclays to Dubai Properties is smart for both. Barclays have just entered the mortgage market, and have secured themselves some business, at a time when the property law is coming into place. DP have done well in securing a high calibe name, which will also be good for business as Westerners will attach more of a viability factor to the UAE property market. And as the trust factor will come into play, DP may even gain some business. Either way, the fact that an old financial instituton is in the property market is a big plus for Dubai.

Barclays, which entered the mortgage market in Dubai, two months ago has "has been in discussions with Dubai Properties for several months," said mortgage director, Philip Ward who describes the agreement as a "partnership with a small p." He said Barclays decided to enter the mortgage market in response to strong customer demand, from the UK and Western Europe as well as from those living in Dubai.

The besix workers

Would a minimum wage sort out issues in this regard?

On the other hand, workers say the legal process is slow and employers sometimes simply ignore adverse court rulings. The Besix workers, none of whom wished to be identified for fear of deportation, said they earned far less than the sums promised by labour agents in India. They are demanding a basic fixed salary of 1000 dirhams ($272, €212, £144) a month, with an eight-hour day and an annual holiday.

An Emirati labour official however said that the law was not on the striking workers’ side, as they had signed a contract with their employer on their arrival, and the problem of dishonest recruiting agents was a matter for the Indian authorities.

A statement from Besix’s subsidiary Six Construct said that the salaries and benefits were equal or superior to those of other UAE construction companies. It claimed that a survey of the camps indicated that the vast majority of workers were willing to return to work, and “a few unknown agitators are physically threatening the others”.

Or would a minium wage be abused to pay those who should be paid more?

The theory of FTA

The Free Trade Agreements appear to be at somewhat of a stalemate. There is no doubt that they will be resolved, but from these negotiations come more than an agreement of free trade. What the US want is probably more than what would usually be required from such an agreement.

The difficulty of talks between the US and GCC countries is manifested in two points. The first one is that the US demands are not limited to economic and commercial aspects but also extend to social and labour issues.

However, what they are actively doing is pushing the UAE a littler further towards Western ways. And that may not be such a bad thing, if the balance can be drawn with the Traditional.

More from the Gulf News

When you are in love with Naomi Campbell

If you want to go bling for your birthday,then hiring out 18 floors at the Burj al Arab is the way to do it.

Naomi Campbell’s multi-millionnaire boyfriend Badr Jafar is set to throw her a £1million birthday party next week.

They’re hiring out all 18 floors of the exclusive Burj Al Arab hotel in Dubai and will have a three-day themed party: Sunday’s theme will be “All White”, Naomi’s actual birthday on Monday will be a “Hip Hop” theme and the finale on Tuesday will be “Brazilian Samba.”

The guestlist apparently includes many of Naomi’s celebrity friends including David and Victoria Beckham, and fellow supermodels Eva Herzigova and Linda Evangelista.

Sure seems like a waste of money, but I guess, if you have it....

UAE police have skills

I'll give you my Labour Card, if you show me your dance routine.

Dubai is like stealing your Dad's Car

A take from a traveller to these parts:

You can't believe that anyone would be so far out of their minds to attempt to do something so utterly ridiculous. Don't get me wrong - it is extremely cool but it's the kind of extremely cool feeling you get when you know something won't last much longer. Like when you steal your dad's car and you know he's gonna catch you but while you're driving you don't really care. I guess that's what Dubai feels like to me.

from Jon Eat World

Modhesh to get Family and Friends!

Modhesh, the "Mickey Mouse of the Middle East", won't be going anywhere soon.



Motorists and pedestrians who spot a bright yellow figure with a wide grin at the side of Dubai's roads should not be alarmed.

Sorry, but Modhesh scares me silly, wherever I see him. I wonder whether his family will look as drugged up as he is.

DIC@Malta aka SmartCity@Malta

Investment overseas by Dubai can sometimes lead to heated opposition. Not in the case of Malta.

There is an interview by the Times of Malta with deputy chief executive officer of TECOM, Abdullatif Al Mulla. Also a taste of DIC, which may (or may not ) be what it is really like.

In fact, DIC is almost a victim of its own success: about 200 companies are on the waiting list. And as the complex expands - that is the most common word in Dubai - the space available within each new building is filled within 60 days of being advertised, and that is long before it's complete.

Interview with Abdullatif Al Mulla
Overview of SmartCity
A taste of Dubai Internet City

Worth a read to get an outside view, albeit a little biased.

The UAE Kidnapping Ramifications

The UAE has managed to stay out of any real controversy, on an official level, with regards to insurgence in Iraq and terrorism in general. The fine balance that it sits on between Western and Islamic ideals has just been toppled. And while the UAE has thusfar protected its own soil, to police diplomats overseas is more difficult.

The UAE will not take this situation lightly. Not to put a price on a person's life, but the fact that this is a diplomat, in essence representing the country, this is a direct attack on the UAE.

Expect official and unofficial action to this. We hope that the UAE isn't dragged into what is fast becoming a civil war in Iraq.

We pray for the safe return of Naji al-Noaimi and that Iraq will one day return to peace.

Reuters
Washington Post
BBC

Thursday is the new Wednesday

A standardised weekend (from September) moving from Thursday/Friday to Friday/Saturday is a good thing all in all.

Already well covered at Secret Dubai Diary and UAE Community Blog

Practically, Saturday will be complete gridlock, just like any other day. Great.

Crafty Kandura Computer Criminal Caught on Camera

Is he actually holding that between his legs or has he got a shpeshul compartment?

The Sports Hijab

According to Springwise, who "scan the globe for smart new business ideas", I read about the joint initiative between Capsters and Nike to produce culturally sensitive sportswear.

Capsters is a range of head-accessories that can be used for different purposes. It can be worn for different sports activities but it can also protect you against the wind or cold weather during outdoor activities.

The concept is based on the idea to give Muslim girls and their gymteachers in the Netherlands a safe alternative for the traditional hijab to wear during gym-class. The designs are realised in close co-operation with Muslim girls and an Imam.

Smart concept for the fastest growing religion. Will it catch on? Personally, I think they're quite funky and will allow those who do wear the Hijab to play sport in more comfort. Hopefully this concept will transfer to past just the Netherlands.

Saffron as an example of Re-exporting

Saffron is said to be the world's most expensive spice. Why exactly is this important in the context of the UAE? Well, until recently I thought that Spain was the largest producer of Saffron in the world. I have now been convinced that Iran is the biggest. (I previously though that Iran was probably a close second)



If, indeed, 57% of Iran's saffron passes through the UAE and 90% of the world's saffron is produced by Iran (Spain seems only to be a major re-export market), by a quick calculation, you can deduce that more than half the world's Saffron passes through the UAE, either for use, but most probably for re-export.

Is this wholly important? Not really, even if the numbers are exaggerations, but it is just a prime example of how the UAE does well at
(1) producing the value added; and/or
(2) acting as a tax-free point of transition to the rest of the world.

Blackberry won't be a Raspberry

What I love about the UAE is that when a new product is launched, everyone is all over it as if there's a limited supply. Watch how the introduction of the Blackberry will go crazy as it becomes the new status symbol, the Cayenne of the phone world, if I may.




"The end-to-end BlackBerry solution is now launched in the UAE and fully supported through Etisalat," said Essa Al Haddad, Chief Marketing Officer for Etisalat. "Results from pilot testing show that the market in the UAE is ready for BlackBerry. We are confident that the BlackBerry solution we offer - the handheld devices, software, wireless services and on-site professional services - will all be embraced by the corporate and technology markets. BlackBerry from Etisalat will address the serious business needs of the UAE's high powered, and very mobile, corporate workforce."

Of course, the Blackberry will be a success in the UAE, and RIM are smart cookies to launch here. Perhaps there will be a few that will make the purchase for illusions of grandeur but I am sure that the monopoly telecom provider of the UAE and Research in Motion won't mind one bit. Me - I'm a 2nd mover, let me know when there's one on souq.com.

Tit for Tat

Gimme yours and I'll give you mine. When I first read the title of this piece, I thought someone had got it wrong:

UAE Urges US To Open Up Telecommunications Sector

Indeed no. The UAE is making a stand:

Al-Mansouri said his country would liberalize its telecom sector by 2010, five years prior to the deadline set by the World Trade Organization, should the U.S. agree to open up its market.

"The UAE is suggesting to advance the date to 2010, as a compromise from our side, given that we get something in exchange," Al Mansouri said.

The WTO wants the global telecom sector, currently guarded by governments and protected from competition to maintain high prices, freed from monopolies and government protection by 2015, the paper said.

Why should the UAE open up its Telecoms sector if the US won't allow the UAE to buy into theirs?

Theme Park Lessons

The lessons from Disneyland Hong Kong are apparent. Small theme parks don't work. Dubailand, I assume won't fall down this trap, with the money that is being ploughed in for tourism. The Time Asia article talks about other lesson's learned, notably:

"Disney knows the theme-park business, but when it comes to understanding the Chinese guest, it's an entirely new ball game,"



Hong Kong's Magic Kingdom has so far been a little short on magic. The $1.8 billion theme park, which opened last September, was touted by Disney executives as its biggest, boldest effort to build its brand in China, a potentially vast new market for its toys, dvds and movies. The Hong Kong government—which aggressively wooed Disney and is the park's majority owner"hoped Disneyland would help secure the city's reputation as one of Asia's top tourist destinations. However, the conservative approach of Disney and its partner has produced a pint-sized park that so far hasn't matched visitors' lofty expectations.

With regard to Dubailand, it's all about understanding what the tourists will want from Dubailand and not can be provided, but I'm sure that's under control.

Nationality and Jobs

Everyone knows the hidden preference by employers for nationality is evident in the UAE. Some call it discrimination/racism, some say that it is a requirement for the position. The general speak of job appointments is usually so:

UK/US/AU educated
- White, with a good degree

UAE Nationals will be given priority
- We're trying to be proactive about Emiratisation, but maybe that's a front

Bilingual
- Arab national, don't worry if you're English is not so good

Asian
- We're not paying well

You must be single
- You're in for some hard time, my friend

Fluency in Hindi
- Asian

Send 5 passport pictures
- We went to make sure whether you're good looking enough

I have also seen some shocking adverts inlcuding one actually asking for a certain nationality and looks, but I wont repeat it here. I have also seen a top qualified English guy, fluent in Arabic from a elite university in the UK being rejected at a first round for a "bilingual" position. Equally, I have seen some very intelligent UAE Nationals with Masters Degrees from good universities, being rejected without a look in.

Some of it is requirement. ie if the job requires Arabic, then sure, you are more than likely to need an Arab National. And while the universities here are not yet in the same league as the top ones in the West, it doesn't necessarily mean that the person is less capable. I don't see any of this changing soon, but it might be beneficial if people changed their perception somewhat.

Aside, today, top page of the Gulf News Appointments section:

"Finance Controller - Arab/Asian"

Now, that can be considered as discrimination against those that are white skinned. (and out of context, some dark skinned) There doesn't appear to be any real reason why the the recruitee has to be Asian/Arab.

Someone once said that racial superiority is a mere pigment of the imagination. Whether what we have is discrimination or preference for jobs at hand because of discrimination is a fine line, both of which need to be tackled over the coming years. How to deal with this to banish the stereotype mentality, however, is a tricky, longer-term issue. I may be over-exaggerating the problem, but, there is no doubt that it does exist.

Pegged Common Currency?

I'm a little confused. I thought a GCC Common Currency is on course for 2010, or thereabouts, maybe a year or two late. Let's say it is in place for 2012. That is 6 years from now.

According to Dr Farid Al Mulla, the Chief Executive and General Manager of the Bank of Bahrain and Kuwait,

Dr Al Mulla told reporters after the opening of the HSBC headquarters in Seef, that there was a need to achieve the GCC single currency target as set by the GCC countries. "In my view the de-linking with the US dollar is not possible in next ten years."

So, that would take us to 2016. Does this actually mean that a common currency would be pegged to the US Dollar? Surely not? By 2010, there should be some sort of stability, economic convergence, etc etc to give weight and strength to the currency to exist off its own back.

Someone explain this to me please. Have I missed this fact all along, or is Dr Al Mulla saying that we wont get to a common currency until 2016? Or is this a case of lost in translation once more?

Buying a Goat

If these pictures continue, I'll be visiting this blog daily to get a real taste of culture.



Link: The Image Village

Appointments

There seems to be an inclination for every publication to publish "high profile" appointments to positions in the UAE, and in general, the Middle East. Sometimes these job announcements can grace the earlier pages of the papers, making it seemingly highly important news. This would probably interest niche publications in the West, as it also does here, but for these appointments to be of interest to the general populous, I find a tad bizarre. I can understand why companies in this region may think they have snagged key talent, and lured them away to come to work out here. I can also understand why it is big news for a company to transfer important staff from their Head Office to head up new ventures here - but to make it all headline news? Maybe it warrants a line or two as part of a bigger story - but to make the story about someone specific and weave in some generalities about the company that they will work for makes the story a little boring. Perhaps it's a bravado thing, perhaps it hides inherent problems in the company or perhaps it's just that I am not part of any "scene" to not know the majority of the people and am just bitter. However, I do wish to know if someone is appointed to Modhesh' position of "goodwill mascot" next year.