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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EU's tax blacklist of UAE questionable It is not clear if the UAE is violating something it agreed to or if the EU is trying to unilaterally enforce rules on the UAE

Earlier this year an ambassador from an EU country asked me if I invested in the EU. I informed him that I didn’t. When he asked me why, I pointed out that the EU had treated two of their members, Greece and Britain, abhorrently, and had tried to punish both countries in ways that made no sense to me. I

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Zombie companies can be harmful

The term “zombie company” has recently entered people’s lexicon as the phenomenon manifests itself in China. Yet this issue did not start with China, it is closely linked to the problems faced by Japan that started in the early 90’s, called Japan’s Lost Decade and sometimes the lost two decades, which arrested the development of their economy for at least

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SWFs as endowments

Different sovereign wealth funds (SWFs) have different mandates. The largest are presumed to have a mandate similar to that of an endowment. The idea is that the state owns a large but fixed amount of a valuable commodity, usually oil, and that this oil is the property of not just the living citizens but also of all future citizens. Therefore,

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Real alternatives to the game of monopolies in the GCC

As the economy continues to be under contractionary pressure, it is high time we took an in-depth look at one of the major constraints to its growth. As we know, it is entrepreneurs building start-ups that form the foundation of any economy. However, as I have argued before, monopolies stifle entrepreneurship. The greater the number of monopolies, the greater the

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Trust but verify: a deeper dive into the UAE’s latest business news

Etisalat’s preliminary 2016 financial statements are available at the Abu Dhabi Securities Exchange. Earnings per share for 2016 operations? Dh0.97. Proposed dividends per share? Dh0.80. This gives a payout ratio of 82 per cent. Rationally, your payout ratio is high when you do not believe that there are any opportunities to invest in and so return cash generated to the

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