VAT’s Impact on Business Strategy

Disclaimer: I am not an expert on VAT and I am not providing advice. I am simply trying to expand the discussion around VAT from how it is applied to what it might mean to business strategy. The first point that I want to discuss is the idea that this is a value added tax levied by the government and

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Shuaa rising profits mask questions over provisions and commissions How much of the investment bank's return to profit is due to provisioning changes?

Shuaa last week announced profits of Dh74 million for 2017 versus a loss of Dh132m in 2016. Quite the turnaround. As always, it is important to examine such large differences in financial performance. So our first step is to look where this came from, an increase in revenues or a decrease in expenses. Revenue dropped 32 per cent to Dh135m

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Breaking down FAB’s full-year numbers for a post-merger picture Loan book reduction, interest expense increase

First Abu Dhabi Bank (FAB), the lender created last year from the coming together of National Bank of Abu Dhabi and First Gulf Bank, released its first set of post-merger annual results on Monday. In this week’s column, I’ll be looking at the bank’s pro-forma statements from both last year and 2016, analysing how well the new institution has been

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Personal Productivity Systems Monetizing what you learn about investing and business

For the past three years I have been working with family groups on transitioning their investments and businesses into today’s economic reality via innovative transformative strategies. Basically, I used my experience, detailed in the over 250 articles on this blog and in The National. One of the major obstacles that I faced was executives who did not have a personal

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Good acquisitions, an unfit brand, and Abu Dhabi’s rising international reputation A number of key business events from the past week are worthy of further comment 

While this column has traditionally focused on one key business event or topic that has caught my eye from the past week, there are often several events of note that are worth commenting on at greater length. The past week is a case in point, with key lessons to be learnt about what makes a good acquisition, how calculations about

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Predictions for UAE Business

My economic, business and financial predictions for 2018 and beyond. These are forward looking statements that should not be relied on to make decisions. The US Federal Reserve will continue to raise interest rates. The Fed already signaled it will tighten monetary policy, which is what raising interest rates does, due to the expansionary fiscal stimulus of the US President

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Effectiveness beats Efficiency in Strategy Firms need new revenues not just cost cuts 

Efficiency slowed profit deterioration Effectiveness will replace efficiency as the main strategic goal of UAE companies in 2018. At least, it will for the successful companies. 2017 was the year of efficiency, as companies learnt to do what they used to do with less. Less money, less time, fewer people. Efficiency cut costs and slowed down profit deterioration. As important

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Cash Conversion Cycle Red Flags Changing economic realities mean businesses can quickly face alarming cash shortages

In my work helping companies transform themselves to take better advantage of economic opportunities and to manage risks more efficiently, working capital risks are frequently overlooked even though they are at the front line of risks faced by companies of all sizes. The cash conversion cycle, an important liquidity measure that usually forms the core of a company’s working capital,

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