Skycity, a subsidiary of Abu Dhabi Airports Company (ADAC) which is responsible for developing and operating the Abu Dhabi Airports Free Zone, has welcomed the first group of customers including a variety of local, regional and international companies to the first phase of the Abu Dhabi Airport Logistics Park.
These companies will enjoy a wide range of Free Zone services such as company registration, licensing, leasing and rapid visa processing for employees in a ‘one-stop-shop’ environment. Some of the other benefits include duties and tax exemptions, foreign ownership, repatriation of capital and profits, and other benefits traditionally offered at any Free Zone setup. Read the rest of this entry »
Dubai Biotechnology and Research Park (DuBiotech), a major life sciences hub in the Middle East and member of the TECOM Investments, recently organized a grand dinner for China-based biotechnology companies. It was attended by His Excellency Gao Youzhen, Consul General of China in the UAE, Mr. Marwan Abdulaziz, Director of Business Development at DuBiotech, senior TECOM representatives among various other existing and potential business partners of DuBiotech. The dinner came as a positive response DuBiotech’s roadshow in China during October last year, comprising of visits to 30 companies in Shanghai and Beijing. Read the rest of this entry »
His Highness Dr Shaikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, has issued a decree setting up the Sharjah Health Care City (SHCC) to be supervised by the Sharjah Health Authority.
The SHCC, a health and medical free zone, will be a corporate body with full financial, administrative and legal powers, according to the decree. It aims to promote Sharjah as an international hub for health care and other related activities. Read the rest of this entry »
According to the Minister of Commerce and Industry, H E Sheikh Saad bin Mohammed bin Said al Mardhouf al Saadi, Oman has
witnessed an increasing growth in its economic zones in 2011 with total investment in the industrial estates reaching US$9.4bn.
The government places great importance to the industrial sector, particularly to the industrial zones in the country, as RO100mn have been allotted for expanding as well as improving the infrastructure of industrial estates in the coming phase. Read the rest of this entry »
IFRS for SME is a solution in response to international demand from both developed and emerging economies for a rigorous and common set of accounting standards for smaller and medium-sized businesses that is much simpler than full IFRSs.
IFRS for SMEs will:
- Provide improved comparability for users of accounts
- Enhance the overall confidence in the accounts of SMEs
- Reduce significant costs involved of maintaining standards on a national basis.
An SME financial statement does not require complete IFRS and as IFRS was designed to meet the needs of equity investors in companies in public capital markets, they cover a wide range of issues, contain a sizeable amount of implementation guidance and include disclosures appropriate for public companies.
Financial statements of SME does not need the above, but, require a more focused on assessment of short-term cash flows, liquidity and solvency. The objectives of developing IFRS for SME were to meet user needs while balancing costs and benefits from a preparer perspective.
The IFRS for SMEs is derived from full IFRSs with appropriate modifications based on the needs of users of SME financial statements and cost-benefit considerations.
Most of the principles in full IFRS for identifying and measuring assets, liabilities, income and expenses have been simplified, topics not relevant to SMEs have been omitted, and the number of required disclosures has been significantly reduced. To further reduce the reporting burden for SMEs revisions to the IFRS will be limited to once every three years.
The IFRS for SMEs will also provide a platform for growing businesses that are preparing to enter public capital markets, where application of full IFRSs is required.
The IFRS for SMEs is separate from full IFRSs and is therefore available for any jurisdiction to adopt whether or not it has adopted the full IFRSs. It is also for each jurisdiction to determine which entities should use the standard. It is effective immediately on issue.
The publication of IFRS for SMEs is a major breakthrough for companies throughout the world. For the first time, SMEs will have a common high quality and internationally respected set of accounting requirements. The benefits will be felt in both developed and emerging economies.
The economic recovery in the United Arab Emirates is gaining strength, supported by a favorable global environment but subject to increased regional uncertainty.
Growth reflects stronger tourism, logistics, and trade in the emirate of Dubai; and large public investment spending in the emirate of Abu Dhabi, including through Government- Related Entities.
Higher oil prices are also contributing to a marked improvement in the fiscal and external positions of the country. Inflation rate at consumer level is expected to remain moderate at 4.5 percent in the country despite a rise in food prices internationally. Property rents continue to decline. Besides, the UAE’s unemployment rate is at low level of 4.2 percent.
However, it must be noted that risks to the country’s economic recovery remain, including from possible economic spillovers of regional events. In particular, the current re- pricing of geopolitical risk in the region could lead to more challenging market conditions, which may put pressure on the entities that need to roll over external borrowing.
Forecasts indicate the UAE real GDP will grow by five per cent this year and a similar rate in 2012, considering the expected growth of six per cent in emerging economies, this rate of growth in the UAE is good. The UAE and Saudi Arabia will be among the countries leading growth in MENA.
Besides high oil prices, growth in the UAE would be fueled by a surge in the tourism sector, citing a 70-80 per cent jump in hotel occupancy in the first few months of 2011. Trade would be another strong growth sector and the current political unrest in MENA would give a strong push to Dubai as a key commercial centre in the world.
A sharp increase in the UAE’s trade sector this year and next year can be expected and the other sectors that will contribute to growth are telecommunications and transport besides in addition to infrastructure and financial services sectors.
The UAE’s GDP, the second largest in the Arab region after the Saudi economy, expanded by around 3.2 per cent in 2010 after shrinking in 2009. Real GDP recorded one of its highest growth rates of 7.4 per cent in 2008.
Strong oil prices will ally with an upsurge in tourism, trade and communications to lift the UAE’s economy by nearly five per cent in 2011, sharply higher than the growth rate in 2010.GDP growth will remain at a high level in 2012 and the level is considered as one of the best growth rates in the Middle East and North Africa.
India’s overall growth of gross domestic product (GDP) at factor cost at constant prices, as per advance estimates was 8.5 per cent in 2010-11, representing an increase from the revised growth of 8 per cent during 2009-10, according to the monthly economic report released for the month of July 2011 by the Ministry of Finance. The index of industrial production (IIP) rose to 8.8 per cent in June 2011, year-on-year, on back of manufacturing and within that, the capital goods sub-segment. During April-June 2011-12, the IIP growth was registered at 6.8 per cent as compared to 9.6 per cent during 2010-11.
India has entered the club of top 20 exporters of goods and reclaimed its position among top 10 services exporters in 2010. India’s goods exports rose by 31 per cent in 2010, helping it to improve its world ranking moving up two places to 20 from 22 in 2009.
India’s FDI gathered momentum with the inflows growing by 310 per cent in June 2011 to touch US$ 5.65 billion. It is the highest monthly inflow during the last 11 years. The total FDI stood at US$ 16.83 billion during January-June 2011, nearly 57 per cent higher than the US$ 10.74 billion received during the same period last year.
The eight core infrastructure industries grew by 5.2 per cent in June 2011 as compared to the growth of 4.4 per cent in June 2010. In addition, exports in terms of US dollar, increased by 46.4 per cent during June 2011. On the back of such facts, India’s GDP is projected to continue to grow at a brisk pace of 8.8 per cent in 2011-12.
India has been ranked at the second place in global foreign direct investments (FDI) in 2010 and is expected to remain among the top five attractive destinations for international investors during 2010-12,
Non-resident Indian (NRI) inflows in the first quarter of 2011-12 has witnessed a rise of 38 per cent as compared to the same period in 2010-11. NRIs invested US$ 1.54 billion in various NRI deposit schemes during April-June 2011.
India’s foreign exchange (Forex) reserves have increased by US$ 1.6 billion to register US$ 318 billion during the week ended August 19, 2011, according to data released by the Reserve Bank of India (RBI). The increase in Forex is largely attributed due to valuation changes.
The Government has approved fund raising worth Rs 60,950 crore (US$ 13.24 billion) by companies through external commercial borrowings (ECB) or foreign currency convertible bonds (FCCB) for infrastructure projects in the financial years 2009-2011.
India’s merchandise exports have registered an increase of nearly 82 per cent during July 2011 from a year ago to touch US$ 29.3 billion, according to a release by the Ministry of Commerce and Industry. Exports during April-July 2011 reached US$ 108.3 billion, up 54 per cent over the same period a year ago.
The Indian automobile industry, the seventh largest in the world, has currently estimated to have a turnover of US$ 73 billion, accounting for 6 per cent of its GDP, and is expected to record a turnover of US$ 145 billion by 2016. India’s automobile industry is expected to grow by 11 to 13 per cent in the fiscal year ending March 2012, according to Pawan Goenka, President, SIAM. The Indian automakers sold 143,370 cars in June 2011, added SIAM.
Demand for two-wheelers has increased by 16 per cent in June 2011 to over 880,000 units, as compared to 761,000 units in June 2010, according to data released by six of the eight domestic two-wheelers manufacturers.
The growth of Indian agriculture and allied sector was a top agenda in Budget 2011-12 presented by Mr Pranab Mukherjee, the Union Finance Minister. He has estimated that the agriculture and allied sector would grow by 6 per cent in 2011-12.
Software as a Service (SaaS) is estimated to grow by 20.7 per cent in 2011 amounting close to Rs 538 crore (US$ 116.85 million) as compared to 2010 where it was close to Rs 445 crore (US$ 966.60 million), according to IT advisory firm Gartner Inc.Approximately 75 per cent of SaaS delivery can be regarded as cloud services as per Gartner, which is on its way to exceed 90 per cent by 2015. Customer relationship management (CRM) is the largest market for SaaS, which is expected to reach Rs168.83 crore (US$ 36.67 million) in 2011 to represent 32 per cent of the total CRM market.
Growth Potential Story
India’s consumption growth story is expected to maintain its course of about 14 per cent growth over the next three years driven by three factors-inclusiveness, mix changes and specific consumption categories, as per senior analysts Vijay Chugh, Ashvin Shetty and Shariq Merchant in the report ‘The Indian Consumer: a robust operator in an uncertain world’.
India will emerge as the second largest steel producer by 2013 with an installed capacity of 120 million tonnes (MT), riding on high levels of growth, construction, housing, real estate, automobiles and agriculture, according to Mr Beni Prasad Verma, Steel Minister. The demand for steel in the country is growing at an average of 10 per cent, which may even exceed to 12 per cent in the near future.
The number of millionaire households in India will grow from 2,86,000 to 6,94,000 between 2011-2020, at a growth rate of 143 per cent, as per a study by the Deloitte Center for Financial Services. Among emerging markets, India is likely to have the highest per capita wealth among millionaires with US$ 4.25 million — placing it ahead of the US. In comparison to other BRIC (Brazil, Russia, India and China) nations, India is likely to experience the largest growth at 405 per cent in total wealth held by the millionaires.
The International Accounting Standards Board decided not to extend the relief from restatement of comparative figures currently provided by IFRS 9, which allows an entity not to restate comparative figures if it decides to adopt the standard before 2012.The International Accounting Standards Board has proposed in its Exposure Draft Mandatory Effective Date of IFRS 9 to move the mandatory effective date of IFRS Financial Instruments to annual periods beginning on or after 1 January 2015.
Earlier application would continue to be permitted. The ED does not address other specific transition issues for IFRS 9, including the prohibition against applying IFRS 9 to items that have already been de-recognized at the date of initial application, which the IASB had indicated it may reconsider. The ED does not discuss how the effective date of IFRS 9 should relate to the effective dates of other projects but confirms the importance of the timing of the insurance project (IFRS 4 Phase II) when setting an effective date.
The ED poses questions for public comment on the proposed date of 1 January 2015 and the IASB’s tentative decision not to change the current requirement in IFRS 9 on comparative figures. The comment period of the exposure draft closes on 21 October 2011.
The IASB has published an ED proposing to defer the mandatory effective date of IFRS 9 to annual periods beginning on or after 1January 2015, with earlier application permitted. The comment period of the ED closes on 21 October 2011. The IASB recently extended its time line for IFRS 4 Phase II and has not yet set a publication date for the insurance standard.
The IASB recently extended its IFRS 4 Phase II timetable and now plans to make a decision on whether to re-expose or move to a review draft of the standard by the end of 2011, or during the course of 2012. It will set a publication date for a final IFRS 4 Phase II standard in due course. The deliberations on the insurance project are ongoing and the IASB has not yet made a decision on the effective date for the future IFRS 4 Phase II standard.
Extension of relief from the requirement to restate comparative figures until the mandatory effective date of IFRS A single effective date for all the phases of IFRS 9, as well as the revised IFRSs on insurance contracts, revenue recognition, and leasing. Many insurers asked the IASB to delay IFRS 9 to achieve alignment with IFRS 4 Phase II.
First of all, the delay of the IFRS 9 effective date gives insurers more time to prepare for IFRS 9. Additionally, allowing insurers sufficient time to make the necessary system changes and to prepare adequately for transition. Considering that the IASB does not expect to issue an IFRS 4 Phase II standard in 2011, it would be impossible to fully align both standards for adoption under the effective date currently in IFRS 9 (1 January 2013)
Silver has taken over gold as the most rare precious metal, read on and discover why we should buy silver in this current uncertain economy.
Silver mining demand aren’t enough to meet the current demands. Silver is often a by-product of mining copper, lead, zinc and gold. Getting silver is a bonus for mining companies.
Worldwide economic growth mainly in China & India, results in more goods being produced. Silver is the indispensable metal in most electronic goods as it is the most electrically conductive, thermally conductive and reflective.
The declining Dollar With confidence dwindling in fiat currencies such as US dollars and Euros, people and investors are turning to real money which have withstood centuries, such as gold and silver.
A further intriguing fact related to this topic is the rising tide in investing demand – Gold and silver, are also known as commodities. Recently, there have been an increase in commodities demand. Gold is peaking now, and silver, the more neglected real money with gold, will gain investor‘s demand as people realise the gold prices are too high.
Gold/Silver Price Ratio – Gold and silver price ratio have always been 1:16. The current ratio is 1:69. Apparently, there is potential for silver prices to move closer to that of gold’s as silver is becoming more rare compared to gold in the current era.
Demand for gold has bounced back after the downgrade in Italy’s long-term credit rating by the Standard and Poor’s to A from A-plus, indicating a weak economic scenario in the Euro region. Any indication for further monetary stimulus would be seen as bullish for the Precious Metals.
Silver also closed in the green as prices took support from rising gold prices but sharp gains were capped as being an industrial metal it also took cues from movement in the base metals pack. Investment demand for the white metal saw redemption in holdings yesterday by 34.83 tonnes from the iShares Silver trust.
The International Copper Study Group said the world copper market was in deficit by 130,000 tons during the first six months of the year. Supply fell short of demand by 286,000 tons during the same period in 2010. Copper prices came under pressure on Tuesday declined by more than 1 percent on the LME as macroeconomic concerns dominated market sentiments. Prices on the LME touched a 9 – ½ month low as poor global economic prospects led to worries over future demand for the metal.