RAK Business Magazine, Issue (16), 2022 by New Generation Media

‫مجلــة أعمــال رأس اخليمــة‬

ISSUED BY RAK DED, ISSUE NO. 16, APRIL, MAY2022

HONG KONG

THE VILLAGE THAT BECAME AN ECONOMIC SUPERPOWER

MINISTRY OF ECONOMY

LAUNCHES NEW VISION FOR NATIONAL PROGRAMME ON SMEs

IMPACT OF

COVID-19 AND MARKET FLUCTUATIONS

KARASI

LIVE RAK PLAY

Brings life to discarded tires and barrels

ENJOY YEAR-ROUND SUNSHINE AND NATURE

EXPO 2020 DUBAI A LEGACY THAT WON’T DISAPPEAR Places to visit in the city of AlUla... Bride of the mountains

The former President of Estonia, H.E Toomas Hendrik Ilves

RAK DED AED 7M TO THE BUSINESS COMMUNITY

UAE HAS AN INTEGRATED STRATEGY FOR DIGITAL DEVELOPMENT

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RAK Business issued by Ras AlKhaimah Department of Economic Development to support and develop the business environment and highlight best practices in Ras Al Khaimah.

SUPERVISION SH. Mohamed bin Kayed AlQasimi EDITOR IN CHIEF Dr. Abdulrahman Alshayeb Alnaqbi MANGAGING EDITOR Aisha Obaid Alayyan EDITORS Nebras Shafik AboZidan Mayyasa Sultan AlKendi

NEW GENERATION TEAM Khawla Ibrahim Abdulaziz Alelewi Zina Abboud Zainab Shieha Dareen Abu AlKheer Maher Safyeldin

VISION: Ras Al Khaimah to be the preferred destination for doing business. MISSION: Organizing economic activities and augmenting efforts for business growth and sustainability in a competitive environment that achieves sustainable economic development in the Emirate. STRATEGIC OBJECTIVES: • Promote diversified and sustainable economic growth • Contribute to the organization of the business sector according to the global standards. • Developing the services provided to clients, strategic partners and the business community. • Expanding and enhancing the institutional efficiency of institutional support services and excellence and boosting the culture of creativity and knowledge. INSTITUTIONAL VALUES: • Positive Citizenship: Taking responsibility and meeting all customers’ needs and beyond- If possible. • Institutional happiness: Continuously strive to win the happiness of our employees, customers, partners, and community. • Creativity and Innovation: We want our employees to take initiative with every new, creative and innovative idea. • Integrity and Transparency: We deal transparently with all stakeholders within an integrated institutional governance framework. • Sharing Knowledge: One team with unified knowledge we all share.

Media consultancy

050 899 5669

ngmedia.ae@gmail.com The topics mentioned express the opinion of its author, and do not necessarily represent the opinion of the Department of Economic Development in Ras Al Khaimah. Despite efforts to investigate accuracy, the magazine does not accept responsibility for any errors in the information provided.

info.ded@economic.rak.ae www.ded.rak.ae

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FROM THE EDITOR With the prolongation of the war between Russia and Ukraine, the world will face a severe energy and food crisis, which will confuse global markets with the rise in prices of basic commodities and industrial goods

RUSSIA-UKRAINE WAR... THE ECONOMIC IMPACT

Dr. AbdulRahman Al-Naqbi

TThe Russia-Ukraine war plays a crucial role in affecting the global economy, given that the two countries are the backbone of energy, oil, gas and other resources. They are the baskets of economy, energy, food and minerals, and thus, they are indispensable for the world. The emerging tension has confounded global markets with the soaring prices of basic commodities, industrial goods, and services. That made the developing countries, including some Arab countries, bear the burden of high prices in Europe, especially that the majority import industrial goods from the conflicting parties. Russia is one of the largest producers of oil and gas. The oil price per barrel, therefore, increased at the beginning of the war reaching $140. Although the price declined later, but it remained above $100, which adversely affects economies and leads to inflation. The Guardian noted that natural gas prices in Europe rose by 70% after the invasion of Ukraine. The cost of living, accordingly, is likely to increase, with some countries affected more than others. It is known that Russian gas represents 40% of the energy supply in the European Union. This percentage may rise to 100% in the Czech Republic and Latvia. While Germany has become more dependent on external energy sources in the past two decades, rising to 67%, which is among the highest rates in the European Union. At the food level, Russia and Ukraine together represent more than a quarter of the world’s wheat supply. Ukraine exported nearly 18 million metric tons of wheat out of the total harvest of 24 million metric tons, making it the fifth largest wheat exporter in the world, as per the Guardian report. The largest importers of Ukrainian wheat include China, the European Union, and most importantly the developing world, where the Ukrainian wheat is one of the most essential imports. For example, about half of the wheat consumed in Lebanon in 2020 came from Ukraine. Egypt, which is the largest consumer of Ukrainian wheat, imported more than three million metric tons in 2020, 14% of its total consumption. According to FAO data, Ukraine also exported 28% of Malaysian wheat consumption, 28% of Indonesia’s consumption, and 2% of Bangladeshi consumption in 2020. Fertilizer prices have also risen due to the high gas prices, as Russia is the largest exporter of agricultural fertilizers. According to experts, half of the world’s population gets food because of fertilizers, and if some crops are not fertilized, the crop will drop by 50%. The world is on the cusp of a political and economic crossroads with a protracted war and affected global supplies. Countries tend to restrict their strategic exports to markets to avoid shortages. Consuming countries, for that reason, will suffer greatly from the high bills of purchases, especially in light of the high shipping prices on the other hand.

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CONTENTS

Issue No. 16 APRIL, MAY 2022

PANORAMA UAE has an integrated strategy for digital development

12 The experience of digital

transformation differs from one country to another, If the technology is neutral people and cultures may not.

Hong Kong... The village that became an economic superpower

18 Hong Kong is one of the world’s

leading economic centers, with a thriving capitalist economy based on low taxes and free trade.

BUSINESS Sanad... To support Emirati SMEs’ working capital needs

22 Initiative offers easy-to-access,

flexible loans, with most competitive lending rates to Emirati-owned and managed businesses .

IMPACT OF COVID-19 AND MARKET FLUCTUATIONS

26 It is expected that the inflation

24 6

rate in the United Arab Emirates will be the lowest compared to the rest of the Gulf Cooperation Council countries.

26 COLUMNS 17

The judicial control officers is a A means of demonstrating the appropriateness of the law in a practical manner

Faisal Bin Deyyeh... In ‘Karasi’ we bring discarded tires and barrels back to life

Live RAK Play, MAKE RAS AL KHAIMAH YOUR HOME

OVER THE TOP

32 The most prominent feature of the

project is to motivate the community to adopt a culture of recycling.

progress of Arab Gulf countries’ digital transformatione

36 The reason for the progress is mainly due to the advanced technological infrastructure.

TOURISM 40 Make a video call at the beach,

answer emails on the top the mountains, and Enjoy premium entertainment experiences

AlUla... EXPLORE The World’s Masterpiece

42 one of the oldest cities in the Arabian Peninsula and Saudi Arabia’s first UNESCO World Heritage site

CommerceUp... end-to-end e-commerce technology solution

A new vision for the National Programme for SMEs

From the course of time… Expo 2020 Dubai A legacy that won’t disappear

A new Hiring

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PANORAMA ECONOMIC

NEWS SPOTLIGHT PARTNERS

As part of the Ras Al Khaimah Vision 2030.

Ruler of Ras Al Khaimah launches ‘General Population, Houses and Facilities Consensus Project 2023’

pon the directives of H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, and the monitoring of H.H. Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, the Ras Al Khaimah Government launched the “General Population, Houses and Facilities Consensus Project 2023,” managed by the Ras Al Khaimah Centre for Statistics and Studies (CSS). Sheikh Saud highlighted the importance of the project and its key role in setting future strategic plans, as well as its contribution to the development of key sectors in the emirate. He also pointed out that the population census and statistical data are key tools for keeping pace with the country’s development process over the next fifty years, to achieve its ambitious visions and goals and enhance its global competitiveness. This came with the approval of His Highness the draft general census of popu-

lation, housing and establishments in Ras Al Khaimah for the year 2023, which is implemented by the Ras Al Khaimah Center for Statistics and Studies, within the “Emirate’s Vision 2030” based on meeting the requirements of comprehensive sustainable social and economic development. This census will provide accurate statistical data and information. Which

forms the basis for making right decisions and developing and strategic plans in vital sectors. The population consensus will help cadres realise their full potential and train them in various areas, as well as encourage participation in all sectors, and reinforce the strategic relations between the public and private sectors.

ECONOMIC PANORAMA

NEWS

RAS AL KHAIMAH PLEDGES OVER AED 7M TO SUPPORT BUSINESSES IN 2021 Ras Al Khaimah Department of Economic Development (RAK DED) revealed it had offered a series of incentives and waivers for various business sectors in 2021, valued at a total of AED 7,017,990. This included licenses registered with the Department from sectors affected by the COVID-19 pandemic or infrastructure works, as well as from small and medium enterprises, which sought to ensure business continuity and maintain competitiveness. Exemptions included 83% support for business sectors, 8% for infrastructure works, 7% for establishments affected by the pandemic, 1% for home traders who hold ‘Alghad’ licenses, 0.36% for charitable work, and 0.03% for supporting People of Determination. RAK DED Director General Dr. Abdulrahman Al-Shayeb Al-Naqbi noted that Exemptions reached 100% for activities such as events

management and contracting, exhibition centers, wedding and special occasions halls. Exemptions of 50% were awarded to the nurseries sector. As for hotels or other establishments that were used as temporary quarantine facilities, and establishments selling sweets in the Emirate, the exemption rate was 25%. Dr. Al-Naqbi asserted that the package of incentives and exemptions launched by UAE Government and RAK Government of since the beginning of the crisis have succeeded in curbing the effects of the COVID-19 on economic performance, encouraging licensees to remain in the market, and avoid suspensions or cancelations. During the second year, this package contributed to restoring much of the economic performance and momentum that was registered before the pandemic. Statistics recorded in 2021 demonstrated this recovery, highlighting notable growth of 36% in the number of new licenses, compared to 2020.

RAKEZ, FIRST TO INTEGRATE DIGITAL SIGNATURE THROUGH UAE PASS Ras Al Khaimah Economic Zone (RAKEZ) has taken its digital transformation further with the addition of digital signature feature to RAKEZ Portal 360, an online self-service platform for clients. The new online solution provides ease to investors, allowing them to sign official documents remotely and complete transactions wherever they are. RAKEZ is among the first economic zones in the country to adapt digital signature to its processes. The feature is made possible by UAE PASS, the first national digital identity and signature solution that enables users to securely log in to various government, semi-government and private entity services through their websites and apps, as well as sign documents digitally with a high level of security.

“RAKEZ is now accessible more than ever to our clients through the integration of UAE PASS to our e-services. Our clients can now complete several important transactions, such as submitting business set-up applications, renewing licences and signing Memorandum of Association, without having to physically visit our service centres,” said Ramy Jallad, Group CEO of RAKEZ. “We are working towards streamlining our customers’ journey from A to Z by implementing a range of digital tools. This is among our many other strategies to enhance the ease of doing business within our zone as well as future-proof our organisation, ensuring that we can support our clients in any situation.” Over the past few months, RAKEZ has been achieving significant milestones in terms of digital transformation include the complete online business set-up, and the launching of its ‘one-click shop’ a solution implemented by the economic zone where investors can submit service requests, track the status and settle their balance.

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AL HAMRA ANNOUNCES STRATEGIC FIVE-YEAR GROWTH PLAN WITH AED 1 BILLION INVESTMENT Al Hamra, the leading real estate development and investment company in Ras Al Khaimah, has unveiled an ambitious five-year roadmap, from 2023-2027, to drive sustained growth through strategic developments. This is aligned with the vision of Ras Al Khaimah’s leadership to establish the Emirate as one of the leading investment, business, residential and tourism destinations. Having earmarked an estimated AED 1 billion to achieve these aspirations, Al Hamra will be embarking on a development campaign underpinned by significant additions to its existing real estate and hospitality portfolio and optimisation of existing assets, ensuring strategies are in place for a systematic technology upgrade and enhancing customer experience in retail that will further strengthen the brand equity. The group’s five-year campaign will be driven by a three-pronged approach this year to position itself as the creator of premier lifestyle experiences, quality products, and world-class services in the Northern Emirates by upgrading to innovative branded hospitality, optimizing retail, developing both vertical and horizontal real estate assets as well as investing in value-added services. Al Hamra will also reinforce its reputation as an industry game-changer, bringing in many firsts and bests to the emirate supporting Ras Al Khaimah’s economic growth, tourism strategy and livability agenda. It will also play a key role in attracting inward investments to Ras Al Khaimah, further contributing to the fastpaced development of the emirate. Benoy Kurien, Group CEO, Al Hamra, said: “Led by the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, the emirate offers the best combination of

affordable infrastructure, investment opportunities, new avenues for development and a strategic balance between scalability, risk-management and attractive returns on investment. Al Hamra’s immediate focus will be to further enhance Manar Mall and establish its reputation as the most preferred retail destination that offers a complete family experience in the Northern Emirates. In addition, relaunch plans are being put into place for hospitality, retail, and leisure businesses such as Al Hamra Residence, Al Hamra Village and Residence, Waterfront, Al Hamra Marina & Yacht Club and select F&B outlets. Continued attention will also be given to the group’s residential, hospitality and commercial projects in the Emirate.

RAKEZ, FIRST TO INTEGRATE DIGITAL SIGNATURE THROUGH UAE PASS Ras Al Khaimah Economic Zone (RAKEZ) has taken its digital transformation further with the addition of digital signature feature to RAKEZ Portal 360, an online self-service platform for clients. The new online solution provides ease to investors, allowing them to sign official documents remotely and complete transactions wherever they are. Over the past few months, RAKEZ has been achieving significant milestones in terms of digital transformation. Some of its most recent efforts include the complete online business set-up, allowing clients to register their business from anywhere; and the launching of its ‘one-click shop’ approach through RAKEZ Portal 360, a solution implemented by the economic zone where investors can submit service requests, track the status and settle their balance.

ECONOMIC PANORAMA

CHEQUESCORE, INTUITIVE APP HELPS CUSTOMERS KNOW THE PROBABILITY OF A CHEQUE TO BOUNCE Al Etihad Credit Bureau (AECB) announced the launch of ChequeScore, an innovative mobile application that allows both businesses and individuals to instantly know how likely a cheque issued through a UAE-based bank is to bounce. “ChequeScore will help reduce the number of bounced cheques in the UAE”, said Marwan Ahmed Lutfi, Chief Executive Officer of AECB. “Last year, bouncing a cheque was a criminal offense; however, with the new law decriminalizing this in the beginning of this year, it has become imperative that UAE businesses and individuals assess the risks associated with cheques they have on hand. ChequeScore addresses this uncertainty, and not only is the application intuitive, but fast as well, as it will indicate the probability of a cheque to bounce in mere moments.”

Marwan Ahmed Lutfi

Once a user downloads the ChequeScore app to their mobile device and registers, they can scan a cheque, upload a cheque image, or enter the cheque data manually. By completing the purchasing process, the user will immediately be shown the Cheque Score - a score ranging from 1 to 99% indicating the probability of a cheque to bounce in the next nine months. The score is also colour-coded, with the low probability to bounce coloured in green, medium probability to bounce in amber, and high probability to bounce represented

RAS AL KHAIMAH MUNICIPALITY ANNOUNCES THE FIRST RAK ENERGY SUMMIT Ras Al Khaimah Municipality announces the first RAK Energy Summit to be held under the patronage of His Highness Sheikh Saud Bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah The Government of Ras Al Khaimah considers energy efficiency and adoption of renewable energy to be important drivers for the competitiveness and sustainability of its economy. The RAK Energy Efficiency and Renewables Strategy 2040 targets 30% electricity savings, 20%

NEWS

in red. The Cheque Score is calculated using the issuer’s Credit Score, another product provided by AECB, with cheque issuance and clearance history, on-time payment patterns, and other factors considered that support the predictive nature of this score. As per the UAE Central Bank’s Image Cheque Clearing System (ICCS), there were 21 million cheques issued in the UAE in 2021, with an average value of AED 51,000 per cheque, with a total value of AED 41.6 billion not fulfilled as a result of cheques bouncing from individuals and companies. “Concurrently, the one providing the cheque should ensure that they have maintained a positive payment behaviour history as not doing so would now be showing instantaneously.”explained Lutfi. While ChequeScore went through months of rigorous trial testing before launch to ensure a smooth and hassle-free more than 11,000 cheques a total value of AED 788 million were scanned through the application. “ChequeScore is available for iOS and Android. For more information, visit www.aecb.ae

water savings and 20% renewable energy in the generation mix by 2040. The Strategy, already well underway through a multitude of programs and initiatives, connects with federal strategies and supports the UAE’s commitments to climate change mitigation as part of the UNFCCC. The first RAK Energy Summit will take place at the Al Hamra International Exhibition and Conference Center in Ras Al Khaimah on 4 – 5 October 2022. It will bring together international and regional experts and leaders from the government and the private sector to discuss emerging trends and initiatives in the field of sustainable energy. At the Summit, participants will discuss emerging trends in green buildings, building retrofits, efficient mobility, efficient water use and reuse, solar applications, energy from waste, and many other related topics. To find out more about the Summit, you can visit www.rakenergysummit.com RAK BUSINESS

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H.E Toomas Hendrik Ilves, The former President of Estonia

ECONOMIC PANORAMA

SPOTLIGHT

HOW DID THE SMALLEST BALTIC STATE MANAGE IN A RELATIVELY SHORT PERIOD OF TIME TO DEVELOP AN ADVANCED TECHNICAL CULTURE THAT BECAME ACCESSIBLE TO ALL SEGMENTS OF SOCIETY?

THE FORMER PRESIDENT OF ESTONIA, H.E TOOMAS HENDRIK ILVES

UAE HAS AN INTEGRATED STRATEGY FOR DIGITAL DEVELOPMENT There was no title associated with a country to distinguish it from other countries as much as the name “E-Estonia” was associated with Estonia. This name became a trademark of what is called today the most digital country in the world. In a short period of time, Estonians managed to achieve remarkable success with the e-government, as 99% of official transactions are conducted on digital platforms, including parliamentary elections.

t is an interesting success story for a country that transformation becomethe focus of the world&#39;s is small in size but large with its unique achieveattention? ments at the global digital level. The story begins This is what was highlighted by H.E Toomas Hendrik in 1991, when Estonia gained independence from Ilves, the former President of Estonia and the godfather the collapsed Soviet Union. In order to catch up with the of digital transformation in Estonia, in the following progress made by many neighboring and non-neighborinterview with RAKBusiness magazine. ing countries, Estonia has begun preparing for a unique experience and inferring the future that guarantees it a HE Toomas Hendrik Ilves is considered the godfather of prominent position on the international map. Because digital transformation in Estonia? How were the begineverything begins and ends nings until Estonia became the with education, Estonia began most advanced country in the Estonia started early in the implementing a national project world in terms of the use of the adoption of digital technologies through which classrooms were Internet and technology? until it was able to provide the equipped with computers. By Let me put it this way – the Internet free of charge to all in 1998, all schools were connected beginnings resembled very the year 2000, and this was the to the Internet. In 2000, the much the situation of a group starting point for the government digital transformation government announced free of people, in a train station hall access to the Internet for all. This with large windows looking paved the way for the emergence of the e-government outside, watching the trains come and go by. Though and simplified its work at the national level. Every citinone of those was our own, the one we were waiting zen had an electronic identity card to use in all services for. Estonia regained its independence from the collapswith the highest standards of electronic security. ing Soviet Union only in 1991, while most Western and Northern European countries had already had their How did the smallest Baltic state manage in a relaseason of industrial expansion and economic boom. An tively short period of time to develop an advanced techexample that comes to mind is a comparison between nical culture that became accessible to all segments of the GDP per capita in Estonia and Finland before World society? And how did Estonia experience in full digital War II, and then in 1992. In 1938, Estonia had slightly

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Estonia experienced digital transformation early on, becoming a learning curve through which other countries can identify the elements they need to work on before embarking on their own path towards digitization. higher numbers in this sense than Finland. Fast forward to the first full year of independence, 1992 indeed, and Estonia’s GDP per capita was eight times smaller than in Finland. So, it seemed like there was a lot to catch up on, and in those few years many were wondering where to go or look at. Was it best to follow some existing models of economic development, or to go our own way and make the leap? A risky one, because we did not know exactly where the latter would take us. Modernizing and developing infrastructures like streets, telecommunications, and all that, takes time and resources – especially when you have to do it by overhauling the ‘souvenirs from another world’ those Soviet times left us. Trust me, it did not sound so poetic back then. But while we were doing all that, we also looked into what could give us a competitive edge. Soon we understood that we had to start from a level playing field with other national economies. We understood we had to go digital. Without getting much into archaeology of ICTs, it is enough to recall three things here. On the one hand, those were also the years of the first internet browser Mosaic, less than half a decade after Tim Berners-Lee had invented the HTTP protocol. Secondly, Estonia had a quite technically savvy human capital back then, as many were coming from the formerly Soviet technical universities and schools. And third, but this probably builds upon my own geek past in high school and university times, that involving young

people in the technological development of the country was going to be the key to getting there. Is the Estonian model applicable anywhere else in the world? How are you working on exporting the Estonian experience, and which countries are eligible for this? Here the choice of words is important – if we are talking about replicability, or taking what we did as it is and applying it somewhere else in the Middle East, Africa, Latin America, or Europe itself, then that is not the right approach. While every country can embark on a journey of digital transformation, starting from the prerequisites that this entails, the Estonian experience should not be copy-pasted. Technology might be agnostic, but people, working cultures and so on, are not. What we actively do, instead, is showcase and export elements of our own experience for others to observe, learn, and then act. That is what we have done for years locally, through the e-Estonia brand and plenty of international conferences, such as the Tallinn Digital Summit. That is what we are doing right now in Dubai, at the EXPO2020 Estonian Pavilion. I sometimes take action myself, supporting Estonian entrepreneurs in introducing their virtual products, like we did for instance last year in Dubai with representatives of Global Virtual Solutions and Multicity - Exponaut. We introduced a platform that helps motivated entrepreneurs to easily initiate virtual expos. This has been launched already for business communication between Estonian and Scandinavian real estate developers, architects and engineers, but can be applied to other sectors too. Our process was not entirely flawless, of course. It has been a learning curve, within which other countries can single out elements they need to work on before starting their own path to digital. But there is one thing that may distinguish those that get off on the right foot, compared to

SPOTLIGHT online quickly and focus on growth, taxes are competitive globally and can be filed online too. But all of that does not bypass the rules for establishing and operating businesses that apply to locals too. Our country’s commercial register is maintained by the registration department of the Tartu County Court, and real-time data about all legal entities can be found in the digital e-Business Register. And moving away from the topic of legal entities, necessary checks on people for granting business visas and e-Resident cards are carried out by the Police and Border Guard. Going digital and business-friendly, in that sense, does not equate with extreme deregulation.

others – political will. As a government, you could simply decide to buy stuff or outsource development. And there, things get problematic. Where instead there is the political will to go digital and pursue plans, where decision-makers and interest groups are willing to go through with them, sense of purpose can lead to implementation. And beware, some decisions will likely not be met with cheering crowds, a standing ovation, plebiscitary support. But digital leaders, aside from vision, should have that strength too.

The experience of digital transformation differs from one country to another. If the technology is neutral, people and cultures may not

Estonia encourage foreign investment by launching a number of visas such as visas for startups, digital nomads and digital citizens, and the doors are wide open for those who wish to establish and practice their businesses online, how is this process legally controlled? We do encourage that. Estonia has activated many programs that give people from other countries the opportunity to become part of our own entrepreneurial ecosystem. I mean, already some years ago we had gotten to the point where our national business environment was among the friendliest in the world – so why not open it up for more people to come? Estonia is already a hub and node of attraction for international founders, solopreneurs, global talent that local companies want to attract and hire. Startup visas contribute to that, as the e-Residency program. This on top of a business environment where companies can be established

The Corona pandemic has accelerated digital transformation in many countries, and negatively affected many economic sectors. Is it possible to say in light of digital Estonia that you are one of the countries least affected by the Covid-19 pandemic? I guess it is a bit of a generalization, particularly if you mention how different economic sectors have been affected by the pandemic. As for many, dare I say most other places around the world, some sectors that are very salient to the national economy – such as tourism, leisure, hospitality – have been hit hard. Operators in culture too have fully witnessed the impact of the pandemic. But if we focus instead on COVID-specific digital responses, and the performance of the digital state at large, few can’t say that the Estonian digital state helped things run smoothly even in a dramatically changed situation. You might say it was a global success story how Estonian event organizers digitalized business tourism and went global during the crisis, to counter the fact that hosting events in person is often not possible anymore. By now, Estonian company Global Virtual Solutions has enabled over 100 million virtual tourists to “travel” to Estonia through their RAK BUSINESS

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events. These global clients include, among others, the UN Security Council meetings, NATO and the European Space Week. So many existing solutions had ensured for years already that the public administration, businesses, and citizens would interact with each other in the most seamless and frictionless way. Through electronic identity and one-stop-shop public portals, people and entrepreneurs kept accessing all necessary services without interruption. Data exchange via X-Road, in the background, granted that relevant information would be exchanged between government authorities to enable service provision. All of this was not built in a day, and gave us the possibility to not be affected as significantly as other countries by the spread of the pandemic. Ah, and let’s not forget that Estonia was also among the first European countries to launch a digital vaccination and recovery certificate, before summer 2021.

The e-visa system, flexible business environment and competitive tax system are factors that have helped Estonia become a center for attracting international founders, entrepreneurs and global talent to start their business in the country

UAE is moving at a fast pace towards digital transformation. What do you think of UAE experience? Looking at UAE from the point of view of this conversation, probably I would highlight two things. One, that the UAE has not started to think about digital development when circumstances forced you to. For example, it seems that the pandemic might have served as a booster, but not as the overarching reason why UAE is going digital. The fact this process has started before then, shows that the will to pursue digitalization is very much present. Secondly, even though diverse sectors of the economy and society require different solutions, it does look like the UAE has had a pretty encompassing strategy of digital development so far, that aims to progress along different lines, in parallel. With care and attention to processes and people’s needs, this may accelerate the time it takes to become more of an example of this, on the global stage. In this sense, I believe Estonia and the UAE look into the future in similar ways, and the UAE by all means can present itself too as a case in point of quick development through digital transformation

ECONOMIC PANORAMA

Judge/ Walid ElRefai RAK DED Legal Consultant

THE JUDICIAL CONTROL OFFICERS

A MEANS OF DEMONSTRATING THE APPROPRIATENESS OF THE LAW IN A PRACTICAL MANNER The judicial control officers, in their various positions in the country, shall bear the burden of the practical enforcement of law. That came in consequence of enacting the law and the oral proceedings thereon that took place in preparation for the law promulgation. Here comes the role of judicial control officers in enforcing the law. They are a means of demonstrating the appropriateness of the law in a practical manner. They, therefore, are judges in their positions seeking to enforce law and justice among those who are addressed by such laws. The judicial control officers have rights and duties on which we should shed light. The purpose is to show the key role they play in any society, the nature of their work, their basic rules for enforcing the law, and finally, their role in Ras Al Khaimah Department of Economic Development. Federal Law No. 35 of 1992 amended by Laws No. 29 of 2005 and 35 of 2006 regarding the issuance of the Code of Criminal Procedure and the Article 33 thereof stipulate that “The following shall have the status of judicial control officers: … 10-

LEGAL CONSULTANT

Servants authorized to act as judicial control officers under the laws, decrees and regulations in force”. This Article is the basis for the appointment of judicial control officers in Ras Al Khaimah Department of Economic Development. Law No. 7 of 2016 was issued in Ras Al Khaimah regarding the commercial control and protection of economic establishments. Article 5 thereof, on granting the status of a judicial officer, stipulates that the employees of the competent department are named by a decision of the Crown Prince, the Chairman of the Executive Council, based on the proposal of the Chairman of the Department of Economic Development. They shall be entitled to the capacity of judicial control officers to carry out inspection and control works, and to prove actions that are in violation of the provisions of this law, as well as all the laws in force within the UAE or Ras Al Khaimah or the decisions implementing them. To this end, they may enter the economic establishments and issue the necessary records in the event of violations and take the necessary legal actions. All local authorities and establishments in Ras AL Khaimah shall enable and assist them in performing the tasks entrusted to them pursuant to the aforementioned laws. Based on the previous rules and as per Article 4 of the same law, the status of the judicial control officer has been achieved for the competent employees in the Department of Economic Development in light of their specialization in the Commercial Control and Protection Department. This shall be done in coordination with the authorities related to the control and inspection of economic establishments and by taking what is necessary to achieve the objectives of this law. These establishments must be ensured they are committed to applying the terms and conditions stipulated in the law and all other laws in force in the UAE and Ras Al Khaimah. The law stated that the executive regulations of this law regulate the objectives and duties of each department, while this executive regulations have not yet been issued. Hence, we recommend accelerating the pace of its issuance to organize the work in both of the Commercial Control Section and the Commercial Protection Section. These two sections are influential elements of development in Ras Al Khaimah, and they play effective role in Ras Al Khaimah Department of Economic Development. Below, we address the terms of appointment of judicial control officers, their rights and duties in the department, their accountability, and our final recommendation. Terms of appointment of judicial control officers: The job duties of judicial control officers must be related to the violations which they are charged to control. These duties must be linked to the legislation where monitoring the implementation of the provisions thereof shall be entrusted to the officers. The competence of the control officers of the Department of Economic Development should therefore include control of commercial licenses, protection of economic establishments, consideration of all violations, and examination of all special complaints to determine their validity. The judicial control officer must have the qualifications and experience that are commensurate with the legislation where monitoring the implementation of the provisions thereof shall be entrusted to the officers. They must be able to ascertain the commitment of those addressed by the legislation, and should be fully conversant with the relevant legislation. A judicial control officer must pass the training courses prescribed according to their work nature and specializations. Finally, they must not have been previously sentenced for a crime against honor or honesty for they should be a living example of discipline and adherence to the law of the state. To be continued RAK BUSINESS

A P R I L - M AY, 2 0 2 2

Musa Abdel Moneim Metwally Economic advisor

In October 2020, the government of Hong Kong Special Administrative Region opened its first economic and commercial office in the Middle East in Dubai. This is a great opportunity to consolidate and strengthen Hong Kong’s economic and trade relations with the region’s trading partners, led by the members of the Gulf Cooperation Council (GCC). The volume of trade between the GCC and Hong Kong reached 100 billion Hong Kong dollars (13 billion US dollars) in 2020.

A BRIEF HISTORY OF HONG KONG: Modern Hong Kong has been inhabited since prehistoric times. Nevertheless, until the end of the middle ages it was just a small fishing village of little importance. The city came under the control of the British Empire in the aftermath of the First Opium War (1839-1842), expanding its borders from Hong Kong Island to a wider province including the Kowloon Peninsula and later the new territories. In the mid-20th century, the city was occupied by Japan during the Pacific War, but it was retaken by Britain after the war, and it remained a British colony until 1997.

In 1997 the sovereignty of Hong Kong was transferred to China. Throughout the colonial era, economy was based on the free capitalist system. This period greatly influenced the formation of the modern culture of Hong Kong where “East meets West”, as were called. After the United Kingdom transferred sovereignty of Hong Kong to China in 1997, The Hong Kong constitution stipulates that Hong Kong will exercise a high degree of autonomy in all matters of the country other than the international diplomatic relations and the military structure.

ECONOMIC PANORAMA

PARTNERS

Hong Kong is one of the world's leading economic centers, with a thriving capitalist economy based on low taxes and free trade.

Hong Kong The village that became an economic superpower

RECENT ECONOMIC DEVELOPMENTS: The Hong Kong economy recorded a modest economic growth rate of 0.2% in the first half of 2019. That was a result of the global economic slowdown and the strained trade relations between China and the United States of America. In the second half of the same year, the legislative amendments enacting the extradition law to China increased fears of China’s interference in Hong Kong affairs, in addition to the fears that Hong Kong will no more be a special administrative region and will follow the Chinese laws. This led to the citizens’ discontent and outbreak of riots and violence (people in black clothes).

7.2%

The Growth rate of Hong KOng during the Second Quarter of 2021

6.4%

The Groth Rate during the Third Quarter of 2021

Therefore, the economic activity declined by 3.2% and 3.6% in the third and fourth quarters, respectively. The economy shrank by 1.7% for the whole year, recording the first annual decline since the global financial crisis in 2009. Hong Kong economy recorded a downturn of 6.1% during 2020 due to the negative impact of the Coronavirus pandemic. Hong Kong economy regained its growth recording a growth rate of 7.2% during the second quarter of 2021 and a rate of 5.4% during the third quarter of the same year. The annual growth rate is projected to reach about 6.4% at the end of 2021, compared to a previous forecast range of 5.5%-6.5%. RAK BUSINESS

A P R I L - M AY, 2 0 2 2

KEY ECONOMIC INDICATORS: Economic activity in the Hong Kong Special Administrative Region declined significantly in 2019 as US-China trade tensions escalated and uncertainty increased. Exports and investment, therefore, were negatively affected. The year 2019 witnessed a decline in the private consumption and the number of expatriates following the social unrest that began during the summer of this year. The following table shows the most important economic indicators for Hong Kong, according to the country report prepared by the International Monetary Fund (in December 2019 and before the Coronavirus pandemic).

Statement

2016

2017

2018

2019

Acutal

2020

2021

Projected

Real annual growth rate

2.2%

3.8

3.0%

1.9%-

0.2

4.7%

Unemployment rate

3.4%

3.1%

2.8%

3.1%

3.4%

3.1%

Ratio of fiscal deficit to GDP

4.5%

5.6%

0.0%

0.3%

0.6%

0.7%

Growth rate of merchandise exports

-0.5%

7.4%

-3.9%

2.8%

3.8%

Growth rate of merchandise imports

1.0%-

8.7%

8.4%

5.6%-

1.6%

3.9%

Current Balance /GDP

4.7%

4.3%

5.5%

1.6%

3.9%

stnemyaP fo ecnalaB

• Hong Kong’s GDP was about $365 billion in 2019. • The pace of recovery in the medium term is expected to be slower than previously as the rising trade barriers and the disruption to global supply chains will burden trade related activities. • Hong Kong’s economy is the freest economy in the world. It is highly service-oriented with service sectors accounting for 93.4% of GDP in 2019. • According to WTO reports, Hong Kong is the world’s sixth largest exporter of merchandise trade in 2020. • Global FDI flows to Hong Kong reached 119.2 billion US dollars in 2020, ranked third in the world after the United States (156.3 billion US dollars) and mainland China (149.3 billion US dollars). • Hong Kong ranked fourth in the world in FDI outflows, with a value of 102.2 billion US dollars, following the mainland China (132.9 billion US dollars), Luxembourg (127.1 billion US dollars) and Japan (115.7 billion US dollars). • Hong Kong ranked fourth in terms of FDI stock, with a $1,884.9 billion, following the United States, the United Kingdom and mainland China. It is also the seventh largest investor in the world with $1,953.9 billion in 2020. • Hong Kong stock market ranked third in Asia and the fifth largest in the world in terms of market capitalization by the end of 2020. The number of compa-

nies listed on the HKEx market reached 2,538 companies. The total market capitalization of the Hong Kong stock market amounted to 6.1 trillion US dollars in 2020.

Billion US dollars Hong Kong GDP in 2019

93.4%

The percentage of the services sector in the GDP for the year 2019

119.2

Billion US dollars Global FDI Inflows to Hong Kong for 2020

102.2

Billion US dollars Through which Hong Kong ranked fourth in foreign direct investment inflows

RANKING IN SOME GLOBAL COMPETITIVENESS INDEXES: Competitiveness Index Rank Ease of Doing Business (IMD) Global Competitiveness Ranking Human Capital Index (HCI)

Assessment Year

2020

2021 Rank 5 in 2020

2018

HONG KONG’S FOREIGN TRADE: • The volume of Hong Kong’s merchandise exports amounted to about 504 billion US dollars in 2020. Of the total exports, 71.8% of exports are electronic goods, 1.6% clothes, 1.4% foodstuffs, 1.2% watches, and 20.9% miscellaneous exports. Exports to the rest of the Chinese regions constitute about 59.2% of the total, the European Union by 7.1%, Asian countries by 7.2%, the United States of America by 6.6%, and the rest of the world about 20%. • The volume of Hong Kong’s merchandise imports amounted to about 551 billion US dollars in 2020. Of

ECONOMIC PANORAMA

PARTNERS

12%

75%

Pearls, precious stones &metals

Electrical and electronic equipment

Machinery, boilers and reactors

Others

5% 1% 4%

the total imports, 56% of imports are electronic goods, 12% machinery/ reactors /boilers, 10% pearls/ stones/ precious metals, 3% optical devices, and 15% miscellaneous exports.

UAE - HONG KONG TRADE RELATIONSHIP: The following table shows the development of the volume of foreign trade between the two countries during the previous years: Statement

2015

2016

2017

2018

2019

Exports

634,4

3,915

563,4

724,4

4,453

Imports

296,6 899,6 237,7

965,7

401,8

Total Trade Volume

821,11

Trade balance

(2,256) (3,083) (3,367) (3,142) (3,651)

319,01 790,21 699,11 755,21

• There is relative stability in the volume of the UAE’s exports to Hong Kong during the period from 2015 to 2019, ranging around 4.4 billion US dollars. The UAE ranks the seventeenth in terms of the volume of Hong Kong imports from the outside world • Pearls, gemstones and precious metals exports represent about 75% of the UAE’s total exports to Hong Kong, followed by electrical and electronic equipment by 12%, machinery and boilers by 5%, and finally miscellaneous exports by 8%.

44%

45%

504

Billion US$ Hong Kong’s merchandise export volume in 2020

71.8%

Of the total exports was the share of electronic goods exports

551

Hong Kong’s Merchandise Import Volume in 2020

56%

Of the total imports was the share of imports of electronic goods

Electrical and electronic equipment Machinery, boilers and reactors

Pearls, precious stones &metals Watches Others

• The UAE’s imports from Hong Kong are steadily increasing, reaching about $8.1 billion in 2019 compared to about $6.7 billion in 2015, with an average annual growth rate of 5% during the period from 2015 to 2019. The UAE ranks eleventh in terms of the volume of Hong Kong exports to the outside world. • Imports of electrical and electronic equipment represent about 49% of the UAE’s total imports to Hong Kong, followed by pearls, stones and precious metals by 41%, machinery and boilers exports by 4%, watches imports by 1%, and finally miscellaneous imports by 5%. • The trade balance tilts further in Hong Kong’s favor, as the balance achieved a deficit of about 3.6 billion US dollars in 2019 compared to 2.25 billion US dollars in 2015, with an average annual increase of about 13%.

RAK BUSINESS

A P R I L - M AY, 2 0 2 2

BUSINESS

AED 100M

SANAD

EDB LAUNCHES THE INITIATIVE TO SUPPORT EMIRATI SMES’ WORKING CAPITAL NEEDS 22

TECHNOLOGY MAE IN RAK STUDIES

n line with the UAE’s National Strategy and series of initiatives to support the small and medium-sized enterprises [SMEs] in the UAE and accelerate their post-COVID economic growth, the Emirates Development Bank [EDB] – a key financial engine of the UAE’s economic diversification and industrial transformation agenda – has announced the launch of ‘Sanad’, a post-Covid acceleration initiative. The new AED 100 million initiative aims to extend quick, easy-to-access, and flexible loans to Emirati-owned and managed businesses looking to accelerate the growth of their businesses post the covid – 19 pandemic. Announcing the landmark initiative, Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said: “The launch of ‘Sanad’ is in line with the UAE’s

BUSINESS

TECHNOLOGY

Initiative offers easy-to-access, flexible loans, with most competitive lending rates to Emirati-owned and managed businesses looking to accelerate the growth of their businesses post the covid – 19 pandemic

leadership vision to boost the SME ecosystem and help the overall economic acceleration post-COVID. Our new AED 100 million initiative offers flexible liquidity support to Emirati-owned and managed SMEs with a growth outlook post the pandemic.” Apart from the quick, convenient, and flexible platform, EDB is also offering interest rates which are the most competitive lending rates in the market in both secured and unsecured loan categories. The loans, to be offered at a starting rate of 5.99% per annum on reducing balance basis, seeks to enable Emirati businesses looking to accelerate their economic growth post Covid. Al Naqbi added, “Our new ‘Sanad’ initiative is in line with the country’s economic diversification strategy and part of the bank’s efforts to drive industrial growth and modernization in the country in the next 50 years and beyond. EDB is the only bank in the UAE to provide such first-ofits-kind quick, easy-to-access, and flexible liquidity support to Emirati-owned and managed SMEs post Covid. Moreover, we have designed a suite of expert financial services to enable Emirati owned and managed businesses accelerate their growth post the pandemic.” EDB stated that the loan requests will be processed within five working days through a hassle-free process making the new initiative a quick, convenient, and flexible platform. The credit assessment of the SMEs will be based primarily on their 2019 financials (pre-COVID) with relaxed norms on evaluation of 2020-2021 financial performance. To know more about the Sanad initiative, please visit: www.edb.gov.ae/en/sanad

COMMERCEUP END-TO-END E-COMMERCE TECHNOLOGY SOLUTION CommerceUp, a start-up service provider of cloud-based e-commerce platform, has officially debuted in the MENA region to offer a next-generation end-to-end unified technology solution to its steadily growing CommerceUp is the first e-commerce online business sector. platform to successfully combine the The company’s presence in the simplicity of use, speed to market, region signals the start of its affordability and the flexibility of heightened efforts to redefine bespoke solutions. e-Commerce 2.0 by offering stateof-the-art software, services and infrastructure. Its solutions designed to allow businesses to rapidly and efficiently scale online, thus enabling them to bring their 100 per cent attention to their core products, brand and customers. CommerceUp’s entry to the market comes at a time when the growth outlook on the region’s e-commerce industry remains upbeat. According to Digital Marketing Researches & Reports ,the value of the regional market rose from USD 18.6 billion in 2016 to USD 41.5 billion in 2020. With its technology, CommerceUp guarantees support for the three pillars of e-commerce, which are online storefront, post-checkout operations and customers and sales growth. It offers a single platform that is integrated with key tools that do away with plugin dependency. On its cost-effective platform, companies can build their websites, social media accounts and mobile applications without the need to form an in-house technical team, thus ensuring significant cost savings. The company’s quick-to-launch technology is integrated as well with powerful features that allow marketing and promotion, easy management of inventory, customers and orders and access to third-party service providers such as payment and logistics partners.The platform is best suited for businesses such as fashion and clothing, beauty and makeup, jewellery and ornaments, grocery and daily kitchen items, electronic appliances, perfume and fragrances, sports and exercise equipment, and online marketplace, among others. For more information, please visit www.commerceup.io RAK BUSINESS

A P R I L - M AY, 2 0 2 2

BY MINISTRY OF ECONOMY

NEW VISION FOR THE NATIONAL PROGRAMME FOR SMEs

The Ministry of Economy launched a new vision for the National Programme for Small and Medium Enterprises (SMEs), aimed at providing entrepreneurs and SME-owners in the UAE with several new and integrated initiatives and services. The new set of services are designed to provide national businesses with more growth possibilities and improved market access. During a media briefing held recently, Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs, announced the launch of various initiatives which come as part of the three main programmes presented by the National Programme under a new platform. This further reflects changes in the services provided to citizen entrepreneurs to support them in developing their projects, thereby enabling them to increase their contribution to the country’s economic diversification efforts and growth in line with the goals of the ‘Projects of the 50.’ These programmes include the Government Procurement Programme, the Business Support Programme, and the Financing Solutions Programme. Al Falasi noted that the National Programme for SMEs has so far formed more than 25 partnerships with leading institutions in the public and private sectors, which have been contributing to the development of initiatives and services under the three programmes Al Falasi said: ‘’ Our efforts to develop SMEs and support entrepreneurial projects led by Emirati youth will continue, by providing them with all the facilities and necessary tools to achieve commercial success, business continuity and growth. He pointed out that SMEs today represent 94 per cent of the total companies and institutions operating in the country and contribute more than 50 per cent to the country’s GDP.’’ He said: “Through the new programs and initiatives that we are announcing today, we look forward to achieving further progress in the country’s entrepreneurship system by providing integrated services to UAE national entrepreneurs, serving their business growth and enhancing their market share.” He added that the National Programme for SMEs under the Ministry of Economy is keen to consolidate its role in supporting

Emirati entrepreneurs as a major platform for these business owners to avail it’s the advanced services. Al Falasi clarified that the new services represent a continuation and expansion of the National SME Programme’s efforts during the last phase, and that a dedicated team within the ministry cooperated with various partners and communicated with citizen entrepreneurs to better understand their needs and challenges, and then later developed a new vision which integrates the services, incentives, initiatives and partnerships in order to provide services that consider future needs and keep pace with the ambitions of entrepreneurs. With regard to the new Government Procurement Programme, Al Falasi explained that the Ministry of Economy renewed its partnership with the Ministry of Finance to enable Emirati entrepreneurs to register on the Federal Procurement Platform in a more efficient and seamless manner. The National Programme, in cooperation with the Ministry of Finance, will allocate special workshops on the platform to enable member entrepreneurs to access various information about procurement and contracts available in the Federal Government. The two parties will also form specific committees to look into any challenges facing Emirati entrepreneurs regarding the federal platform. The Minister further noted that the National programme at the initial stage will coordinate with the government procurement of three federal entities namely the Ministry of Education, the Emirates Foundation for Health Services, and the Ministry of Human Resources and Emiratisation. He emphasized that the goal of this stage is to put in place the appropriate processes to ensure the involvement of the federal procurement in serving the needs of citizen business owners, and thereby expand the scope of the initiative to ensure success, achieve the desired outcomes, and provide advanced services that include all ministries and target entities. He continued: “What distinguishes the

BUSINESS launch of this government procurement programme today is the expansion of the entities participating in this initiative, This is made possible through a series of partnerships signed by the program with national institutions. So far, 13 partnerships have been concluded, including the ones with the United Arab Emirates University, Emirates Post Group, Emirates Transport, Zayed University, Emirates Integrated Telecommunications Company (du), Higher Colleges of Technology, Federal National Council of the UAE, Etihad Airways, and Etisalat Group. “We also see a great demand from the private sector and national companies in the country to participate in this initiative and support it in a way that serves citizen entrepreneurs who own small and medium enterprises Efforts in this direction are continuing, and we will announce more partnerships in the coming months to expand contracting opportunities for SMEs that are members of the National Programme. During the next stage, we will also work on developing well-studied indicators to measure the performance of these partnerships and the efficiency of the work mechanisms used to ensure that they achieve the desired results,” he added. In addition, he reviewed the efforts of the National SME Programme to develop the “Business Support Programme” through which, various services are provided to entrepreneurs based on special partnerships forged by the Programme in this regard. These services include: Telecoms service, in partnership with the Emirates Telecommunications Corporation (Etisalat), and will contribute to providing a more efficient and advanced digital services to Emirati entrepreneurs. Accounting and internal audit service through several partnerships held by the National Programme with seven national companies specialized in this field, representing a service from entrepreneurs to entrepreneurs. Enterprise resource planning service through important partnerships that allow entrepreneurs to access effective digitiza-

VISION

The new set of services are designed to provide national businesses with more growth possibilities and improved market access

Dr. Ahmad Belhoul Al Falasi tion of institutional resources as the best way to manage resources The number of commercial licenses in projects, as well as high-level registered for Emirati entrepreneurs consulting services that contribincreased from nearly 23,000 in ute to the development of national 2019 to about 29,000 in 2021, with projects and enable them to grow. a growth rate of 26% Insurance services, where the programme has developed partnerships to provide insurance solutions, especially for health and vehicle insurance programs ‘Incentives programme, through a continuing cooperation agreement with the Ministry of Human Resources and Emiratisation which offers reduced cost in labor recruitment commensurate with the capabilities of small and medium enterprises, making them more flexible. Elaborating on the financing solutions programme offered by the National SMEs Programme, he said for members through an integrated partnership between the National Programme and the Emirates Development Bank. These tools currently include: o The Business Banking Services Application: It is one of the innovative technological solutions that enable entrepreneurs to open their bank accounts within a few minutes and activate them within 48 hours. Al Falasi said that the working group in the ministry will constantly work to develop partnerships and services to serve Emirati entrepreneurs. “Our ambition is for the program’s platform become the main go-to platform for every Emirati entrepreneur, and we will make sure to provide all the tools to meet all major requirements that will enable Emirati entrepreneurs to cope with challenges in the market and contribute to their growth and success.” The Ministry of Economy explained that it provides all information related to the services and initiatives of the National Programme for SMEs on the programme’s website The Ministry of Economy explained that it provides all information related to the services and initiatives of the National Programme for SMEs on the programme’s website www.uaesme.ae, For more Info. uaesme@economy.ae or call 8001222

RAK BUSINESS

A P R I L - M AY, 2 0 2 2

WORLD ECONOMIC OUTLOOK 2021-2022

IMPACT OF COVID-19 AND MARKET FLUCTUATIONS PREPARED BY PRESENTED BY DR. TALIB HASSAN HAYALI ECONOMIC EXPERT, RAK CENTER FOR STATISTICS & STUDIES

The global economic recovery is still contingent on the future of the pandemic, though we entered 2022. The uncertainty of recovery seems to prevail due to the continued emergence of new COVID variants. According to the projections of the World Health Organization, Omicron is not the last variant but the least effect. The Omicron variant has repeated the scenario of closing the borders and canceling flights, celebrations, tourist programs, and others. That made the world unable to see the light at the end of the tunnel, and thus, uncertain about the end of this pandemic and about the liberation of humanity and the global economy from its consequences. According to Bill Gates’ predictions, there is a cautious optimism about the end of the pandemic in 2022. However; the problem is that progress would stay impeded and slowed down. It is a problem of people’s mistrust of governments, while the World Health Organization is silent giving no cheerful news to revive hopes of the global economy instead of waiting for a new mutation. On the economic side, the International Monetary Fund presented four forecasts in 2021 for global economic growth for 2021 and 2022 distributed over the months of January, April, July and October. All these forecasts were optimistic and convergent. The most uneven forecasts for the global economy were those related to advanced economies, including the United States economy and the Euro-zone. The following is a brief summary of these forecasts.

A) GLOBAL ECONOMIC GROWTH FORECASTS FOR OCTOBER 2021:

4.9%

IMF forecast for global economic growth for July 2020 ‫ــــــــــــــــــ‬

4.5 %

Growth forecast for developed countries in a month October 2020 ‫ــــــــــــــــــ‬ In regard to the growth of emerging market and developing economies, it exceeded the growth expectations of advanced economies in all of them and for the current and previous years, except for the expectations of April of 2022 ‫ـــــــــــــــــ‬

urTable (1) on the forecasts of the International Monetary Fund for the world economic growth outlook for October, July and April of 2021 show a discrepancy in the mentioned growth rates on one hand, and between the advanced and developing economies on the other hand. These discrepancies can be summarized in the following observations: 1. The International Monetary Fund projected the global economy to grow in October of the previous year by -5.9%, 0.1 points higher than the projections of July and April. A growth of 4.9% was projected for 2022, 0.4 points higher than the projections of April 2022 while it matched the ones of July. According to IMF experts, the growth projections of developed countries in October of last year were 5.2% in 2021 and 4.5% in 2022, with a 0.4 point increase from the July forecast in the 2021 WEO, and 0.1 point lower than the April forecast of the World Economic Outlook of the same year. The projections of the IMF experts for the month of October 2022 were up by 0.1 point from the July forecast and down by (0.9) point from April of this year. As for the growth of emerg-

BUSINESS

ing markets and developing economies, it exceeded the growth projections of advanced economies for the current and previous years, except for the forecasts of April of 2022, where the projections of advanced economies outperformed developing markets and economies by (0.2) points. For more details, see Table (1). 2. US economic growth forecast increased last year from 5.6% in April to 6% in October, after it was 5.0% in July. In contrary to this year’s forecast, rates took a downward trend projecting a 6.9% growth in the April report forecast. It was reduced in the July WEO by 1.4 %, and then reduced by 0.3% in the October report. Note that the US economy contracted by 3.4% in 2020, while the Eurozone economy by 6.3%. The forecasts of the three reports for the year 2021 were trending downward from 6.5% in April to 5.4% in July to settle at 5.0% in October. The forecasts for 2022 were more stable. For more details see Table (1). 3. The global economy recorded a contraction of (-3.1%) in 2020. The advanced economies recorded a contraction of (4.5%) in the same year, comparing to (2.1%) contraction in emerging and developing economies, a decrease of (2.4%) from advanced economies and (1%) from the

-3.4%

The rate of contraction of the US economy for the year 2022 ‫ــــــــــــــــــ‬

-3.1%

The rate of completion of the global economy will contract by 2022 ‫ــــــــــــــــــ‬

-6.3%

The economy most affected by the pandemic was the Euro-zone ‫ــــــــــــــــــ‬

STATISTICS STUDIES

growth of the global economy. It is worth noting that the Chinese economy is the only economy in the world that achieved positive growth in the pandemic year by 2.3%. 4. Statements of 2020 indicate that the economy most affected by the pandemic was the Euro-zone economy, which recorded a downturn of 6.3% despite all the actions taken to control the pandemic, including closures of borders, travel ban, and others. The economies least affected were emerging and developing Asia with a rate of (0.8%), followed by emerging market and developing economies with a growth rate of (2.1%), although sub-Saharan Africa recorded a contraction of (1.7%) with the different size of the economy and its impact on the global economy. The Chinese economy has not experienced an economic recession. 5. As for the forecasts of the World Bank for global growth published on January 11, 2022, it indicates a decline to 5.5% 2021 and 4.1% in 2022, compared to 5.9% and 4.9% for the same two years. The difference was less than (0.4%) and (0.8%) from the projections of the IMF experts for the month of October 2021. The reasons behind that are the magnitude of risks arising from the pandemic variants, the high rate of inflation, debt, the

RAK BUSINESS

A P R I L - M AY, 2 0 2 2

Emerging market and developing economies remain in a better position in terms of economic growth rate forecasts and international trade

Table (1): Global economic growth forecast 2021-2022 According to the World Economic Outlook for October, July, and April 2021 (%) October Forecast Estimates of IMF experts

Details

Global output Advanced economies United State Euro-zone Emerging market and developing economies China Emerging and developing Asia Latin America and the Caribbean Middle East and North Africa Sub-Saharan Africa Global growth according to market-based exchange rates

July Forecast World Economic Outlook Update 2021*

April Forecast from the World Economic Outlook 2021*

2020 –3,1

2021 5,9

2022 4,9

2021 5,8

2022 4,9

2021 5,8

2022 4,4

–4,5

5,2

4,5

4,8

4,4

5,3

5,4

–3,4 –6,3

6,0 5,0

5,2 4,3

5,0 5,4

5,5 4,3

5,6 5,6

6,9 4,8

–2,1

6,4

5,1

6,5

5,0

6,1

5,2

2.3

8.0

5.6

7.9

5.5

7.6

5.6

0,8-

7,2

6,3

6,9

6,2

5,8

6,0

–4,1

5,2

1,5

5,1

1,1

6,7

0.4

–3,2

4,1

4,5

4,2

4,5

–1,7

3,7

3,8

4,0

3,5

4,0

3,6

–3,5

5,7

4,7

5,4

4,8

5,6

5,3

Ref: IMF - 2021. Global Economic Outlook: Pandemic Recovery - Health Concerns, Supply disruptions, and Price Pressures. Washington DC, October. p. 5-6. * Calculated based on October 2021 WEO forecasts and differences from July and April 2021 forecasts

decline in pent-up demand, and the end of support in most of the world at the level of financial and monetary policies. See Table (2). Amid the global economy conditions resulted from COVID-19 and its variants, the following questions arise. Is the global economy capable of achieving the growth rates projected by the Monetary Fund for 2021 and 2022? Will it end up at the World Bank’s projections, especially in the advanced economies and the Euro-zone in light of the continuing impact of the pandemic, price and debt pressures, and the end of government support policies in the world? Table (2): Global economic growth forecast 2021-2023 According to World Bank estimates Growth rate

2021

2022

2023

World Economy

5.5

4.1

3.2

Advanced economies

5.0

3.8

2.3

European Union

5.2

4.2

2.1

Emerging market and developing economies United State

6.3

4.6

4.4

5.6

3.7

2.6

Japan

1.7

2.9

1.2

China

8.0

5.1

5.2

4.4

3.4

4.6

2.9

Middle East and North Africa United Arab Emirates

2.7

Ref: World Bank Report, World Economic Growth Outlook, Washinton, January 11, 2022.

BUSINESS

B) GOODS AND SERVICES TRADE GROWTH FORECAST - OCTOBER 2021: The IMF experts’ report for the month of October 2021 indicates an 8.2% contraction in the volume of international trade in goods and services in 2020, comparing to 0.9% in 2019. As for their forecast for trade growth in 2021 and 2022, it could be summarized as follows: 1. The October 2021 growth forecast for world trade in goods and services was the same as for July, but it was 1.3 % lower than the April forecast. As for the forecasts for 2022, they have been uneven. While the projections of July decreased by 0.3% from the ones of October, they increased in April by 0.2%. See table (3). 2. As for imports, experts expected an increase in imports of advanced economies by 9% in October 2021, exceeding the expectations for July and April by 0.7% and 0.1%, respectively. Likewise, the expectations for 2022 were 7.3% in October, exceeding the expectations of July by 0.3%, and of April by 0.9%. In contrast to the imports of emerging market and developing economies, which was estimated at 7.1% in October 2021, lower by 0.7% and 3.0% from July and April, respectively. While the 2022 forecasts were equal for the months of October and July, and decreased by 0.3% from the April forecasts. See table (3). 3. As for exports, the October 2021 growth forecast for advanced economies was 8%, which is the same as in July, but it is 0.1 % lower than the forecast for April. In 2022, the October forecast was identical to July by 6.6%, but it is also lower than April by 1.5%. As for the expectations of emerging market and developing economies, it was 11.6% in October of last year, which

STATISTICS STUDIES

Table (3) : IMF forecasts for international trade growth 2021-2022

(%)

October Forecast of IMF experts 2021

July Forecast from the World Economic Outlook Update 2021

April Forecast from the World Economic Outlook 2021

2020

2021

2022

2021

2022

2021

2022

Global output

–3,1

5,9

4,9

5,8

4,5

5,8

4,5

World's trade in goods and services

–8,2

9,7

6,7

9,7

6,4

11,0

6,9

Advanced economies

–9,0

9,0

7,3

8,3

7,0

8,9

6,4

Emerging market and developing economies

–8,0

12,1

7,1

12,8

7,1

15,1

6,8

Advanced economies

–9,4

8,0

6,6

8,0

6.6

8,1

6,8

Emerging market and developing economies

–5,2

11,6

5,8

12,4

4,9

15,6

5,6

Forecasts

Imports

Exports

Primary commodity prices (in US dollars) Oil prices

32,7-

59,1

57,3

61,6

58,1

76,5

61,8

Advanced economies

0,7

2,8

2,3

3,2

2,5

4,0

2,9

Emerging market and developing economies

5,1

5,5

4,9

5,6

5,1

6,1

5,4

Consumer prices

Ref: IMF - Global Economic Outlook 2021: Pandemic Recovery - Health Concerns, Supply disruptions, and Price Pressures. Washington DC, October * Calculated based on October 2021 WEO forecasts and differences from July and April 2021 forecasts.

is lower, as shown in Table (3), in contrast to the expectations of 2022 amounting to 5.8%, which is an increase of 0.9% comparing to July, and an increase of 0.2% comparing to April. 4. Oil prices achieved negative growth of (32.7%) in 2020 as affected by the pandemic and speculation in prices that occurred between some producing countries and Russia before the OPEC + agreement, which led to the collapse of oil prices to (- 37.7%) in March 2020. The IMF experts’ report in October 2021 expected oil prices to reach $59.1 compared to $57.3 in 2022, but reality has changed a lot after the IMF has released those expectations. Oil prices crossed the threshold of seventy dollars and entered the eighty in October 2021. We are now in the middle of January 2022, and prices are expected to reach one hundred dollars. 5. As for consumer prices in advanced economies,

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It is expected that the inflation rate in the United Arab Emirates will be the lowest compared to the rest of the Gulf Cooperation Council countries.

their growth remained low at the level of 0.7%. These countries were striving to raise it to 2.0% in order to ensure the sustainability and development of economy, in contrast to the growth of prices in market economies by 5.1% in 2020. As per the expectations of the three reports of the developed countries for the year 2021, they were 2.8% in October, compared to 3.2% in July and 4.0% in April, in 2022 they were 2.3%, 2.5% and 2.9%, respectively. While growth forecasts for emerging market and developing economies were 5.5% in October, 5.6% in July, and 6.1% in April 2021. Reports expected the economy to grow this year by 4.9%, 5.1% and 5.4%, respectively. It is worth saying that the global economy is now complaining about high inflation rates as a result of the rise in shipping costs and the disruption of supply movement again due to the Omicron mutant, see Table (3).

C) FORECASTS OF THE GROWTH OF THE GULF COOPERATION COUNCIL AND THE UAE - OCTOBER 2021: The projections of the IMF experts in their October-2021 report on economic growth and inflation for the GCC countries in general and the UAE in particular, indicate a number of facts, see Table (4). 1. The GCC countries achieved a growth rate of 2.7% in 2021 and 3.8% in 2022 in real GDP, while the UAE achieved growth rates of 2.2% and 3.0%, exceeding the contraction of their real output by (4.8%) and (6.1%) respectively in 2020 as a result of the pandemic. 2. The inflation rate in the GCC countries was expected to be 2.5% in 2021 and 2.7% in 2022, while in the UAE it was expected to reach 2.2% in 2022 compared to 2.0% in 2021. This rate is among the lowest compared to the rest of the GCC countries. 3. The Fund expected the value of total exports would reach $318.0 billion in 2020, and rise to $369.4 billion in 2021. The Fund also expected the value of imports to reach $329.9 billion in the previous year, after it was %278.5 billion in the year before. The UAE, through the ‘Projects of the 50’, has launched the 10x10 program with the purpose of increasing the country’s exports by 10 percent in 10 key markets. The establishment

3.8 %

The expected GDP growth rate for the Gulf Cooperation Council countries for the year 2022 ‫ــــــــــــــــــ‬

3.0‫ و‬%

Expected GDP growth rate for the UAE for 2022

‫ــــــــــــــــــ‬

2.5 %

The expected inflation rate for the Gulf Cooperation Council countries for the year 2022 ‫ـــــــــــــــــ‬

of the “Higher Committee for Economic Agreements” was also announced. The Committee will undertake comprehensive partnership agreements with eight (8) key markets. The aim of these agreements is to achieve an AED 40 billion annual increase to the UAE’s current AED 257 billion trade volume. 4. As for crude oil prices, their average during the year of the pandemic 2020 remained at $41.5 per barrel, down from %61.4 per barrel in 2019, a decrease of 32%. The prices rose significantly to %67.5 per barrel in 2021 as a result of improving the global economy performance and easing of restrictions, reaching an average of %67.5 per barrel during the period between January-October 2021. In October, oil prices exceeded $80 per barrel and remained at this price until January 2022. It was further strengthened after the formation of the OPEC + alliance last July, in the wake of the fluctuations in global oil markets during the first half of 2021, in addition to extending the agreement to adjust oil production until the end of 2022 instead of April. The production was approved to be increased by 400 thousand barrels per day as of last August to ease price pressures. Note that oil prices now exceed all IMF projections for 2021 and 2022.

BUSINESS

STATISTICS STUDIES

CONCLUSION

The global economy is projected to witness a sharp slowdown caused by the persistence of the coronavirus variants, the high levels of inflation, debt and income disparity Table (4): Forecasts of growth of GCC countries and the UAE 2021- 2022 Forecast of IMF experts October, 2021

Forecasts

(%)

Expert Consumer Price Forecasts, October 2021

2020

2021

2022

2020

2021

2022

GCC countries

-4.8

2.7

3.8

UAE

–6.1

22,

3,0

-2.1

2.0

2.2

Saudi Arabia

-4.1

2,8

4,8

3.4

3.2

2.2

Kuwait

-8.9

0.9

4.3

2.1

3.2

3.0

Qatar

-3.6

1.9

4.0

-2.7

2.5

3.2

Oman

-2.8

2,5

2,9

-0.9

3.0

2.7

Bahrain

–5.1

2,4

3,1

-2.3

1.0

2.7

Ref: IMF - Global Economic Outlook 2021: Pandemic Recovery - Health Concerns, Supply disruptions, and Price Pressures. Washington, October.

In general, all forecasts are subject to change following the global health and economic situation. The global economy is projected to witness a sharp slowdown caused by the persistence of the coronavirus variants, the high levels of inflation, debt and income disparity, the decline of pent-up demand, and the end of support measures at the level of fiscal and monetary policies in various countries of the world. According to the World Bank’s estimates, all these factors may affect the gains achieved in 2021, and thus lead to lowering expectations of most global economies. In its report issued on January 11, 2022, the World Bank projected that the global growth rate of real GDP would decline significantly from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023. This forecast differs from the one of IMF experts for October 2021, see Table (1). Emerging market and developing economies remain in a better position in terms of economic growth rate and international trade forecasts, at least in the October 2021 report, compared to the advanced economies, Euro-zone countries and others. Moreover; the current crisis, which represents a reaction to the consequences of the Coronavirus and its mutants, requires a different role for economic policies and the accompanying pressures in financial markets and commodity trade. Compared to previous crises, the most affected sectors and economies were very hard to be stimulated. That necessitated the end of repercussions of the pandemic, as soon as possible, to achieve stability and enter the recovery phase. This phase requires closer cooperation between countries. Geopolitical tensions, trade conflicts and uncertainty must also be overcome, especially between the United States and its international partners. These factor made governments face more challenges with limited stability and sustainability of economic growth rates.

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OVER THE TOP

FAISAL BIN DEYYEH

ENTREPRENEURS DEVELOPMENT SELF-GROWTH

BUSINESS

ENTREPRENEURS

Faisal Bin Deyyeh combines a hobby with a business represented by “Karassi” to recycle used metal Barrels and tires to turn them into distinctive home furnishings

FAISAL BIN DEYYEH

“In ‘Karasi’ we bring discarded tires and barrels back to life”

From a discarded barrel to a beautiful chair decorating the garden. From a worn tire left aside to a superb table decorating a coffee corner in a house. From various tools that lost their value for which they were originally made to shining masterpieces. In short, this is what Engineer Faisal Bin Deyyeh works on driven by his passion for recycling and protecting the environment Interviewed by Abdul Aziz Al-Alewid

“I have that passion for recycling in all its forms. I watched many videos on YouTube to broaden my understanding of this. Through the Internet I found that tires and some other materials take longer time to decompose in nature, and burning them; too, is very dangerous to the environment. Here I came up with the idea of recycling metal barrels and used tires to turn them into distinct pieces of home furniture,” Faisal said to RAK Business magazine about his beginnings. He continued, “… It is true that I have a government job, but I wanted to diversify my sources of income. Hence the idea of launching ‘Karasi’ project came to combine my hobby with my private project. The government paved the way for young people, and overcame the difficulties that may impede starting their own enterprises. Thus, I launched my enterprise through the Saud Bin Saqr Establishment for Youth Enterprise Development (RAK SME). Through this Establishment, I received support, directions and facilities, in addition to giving the opportunity to participate in many exhibitions and awareness workshops on entrepreneurship. The same was the case with the Khalifa Fund for Enterprise Development. I also got unlimited support from the Department of Economic Development in Ras Al Khaimah through the Al-Ghad license, which allowed me to continue my home-based business and enabled me to work in a legal manner.”

CONTINUOUS DEVELOPMENT: Regarding the details of his work, Bin Deyyeh said, “I started collecting discarded tires from shops, then cleaning and sterilizing them with environmentally friendly materials. Each piece was selected for its appropriate design that I drew for the production of a household good, such as chairs and tables for gardens, councils (majlises), restaurants, schools, and others.” Bin Deyyeh has a tendency in keeping pace with the local public taste and increasing demand for the products of ‘Karasi’. He said, “…at the beginning of the project, I used to use a piece of cloth or leather on the entire chair. With the passage of time I began to mix the heritage-style pieces of Sadu with leather. That gave my items a traditional-modern style, which was more attractive to people. Aiming to keep pace with the public taste, I used colors that are suitable for majlises and lounges, such as red, white, and sometimes light green. I also introduced different designs inspired by the local environment, such as Sadu, which are suitable for lounges, home gardens, and tents. Thanks to God, today I find my products made of tires and barrels spread and used in those places,”

FEELING OF THE IDEA: ‘Karasi’ project has faced many challenges, Faisal said, “I faced many challenges since the idea of the project RAK BUSINESS

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BUSINESS

The most prominent feature of the “Karasi” project is to motivate the community to adopt a culture of recycling, which encourages more community members to take similar steps aimed at preserving the environment

ENTREPRENEURS

Deyyeh said, “away from doing business, perhaps the most prominent and lofty goal of establishing ‘Karasi’ is to disseminate the culture of recycling and encourage community members to adopt this culture. That may be happened by motivating people to benefit from all the waste daily produced. We also encourage shops to acquire this type of furniture in order to reduce the environmental pollution and to preserve the general landscape in the Emirate.” “I have participated in many seminars and training workshops to educate school students and the community about the importance of recycling and preserving the environment. I seek to cooperate with RAK Punitive and Correctional Establishment (Ras Al Khaimah Central Prison) to provide training courses for inmates on the recycling of various waste, in addition to public and private schools and several educational centers in Ras Al Khaimah,” he added.

AMBITIONS PROMISING: was rare in the community. It was difficult to market my products, and the turnout was weak at first. People were doubtful about the idea of using furniture made of used tires and barrels, but over time, they began to accept the idea. The issue of providing the necessary raw materials and tools was also very difficult, but bit by bit I got to know the local market. I was also keen to cooperate with private and governmental institutions to obtain the necessary materials they are unable to dispose in the recycling process, such as Julphar Pharmaceutical Industries and the Department of Works and Public Services.”

PRESERVING THE ENVIRONMENT IS EVERYONE’S RESPONSIBILITY: Like any project, ‘Karasi’ has goals and directions. Bin

“Today, I can say that I have made great strides in this field. Now, I have a considerable experience that motivates me to widen my ambitions toward establishing my factory, in which I can produce professional products in terms of quality and quantity. Thus, I may be able to cover the local market demand and export my products; too,” he said. At the end of this meeting, and based on his unlimited commitment to the environment and future generations, Eng. Faisal bin Deyyeh affirmed saying, “I take great care in ‘Karasi’ project to work in a clean and safe environment free from obstacles and risks, while emphasizing the availability of security and safety equipment which are frequently checked. The aim is to continue the manufacturing process without delay or defect or causing any pollution to the environment”

RAK ZOOM

ONE OF RAK DED INITIATIVES

GULF CEMENT COMPANY

BIANCO LEATHER SPA

Gulf Cement Company was established in 1977 as a Public Shareholder Company in UAE. The factory is located in Ras Al Khaimah – Khore Khwair area and the advantage of bio-situated near the quarries of main and essential raw materials (limestone) as well as its proximity to the Saqr Port, making it easier to import equipments and materials process, and export of products, cement, Clinker and GGBS. The Gulf Cement Company considered as one of major cement producers in UAE. Since incorporation, the Company conducted a lot of improvements and expansions to increase production capacity and efficiency. Scan the following code for more information

Founded by Emirati entrepreneur Ahmed Mohammed Obaid Al Maftoul, in 2016, as the first center specialized in the restoration and repair of leather products such as handbags and shoes from famous brands, has the most highly skilled workers in this field. The project Won in the RAKEZ Business Excellence Awards 2018, Best Small Business in Ras Al Khaimah 2018 ( second place). For more information on this unique project, scan the following code:

PROGRESS OF ARAB GULF COUNTRIES’ DIGITAL TRANSFORMATION Results of the new GCC E-Performance Index 2021 revealed that the six Gulf countries are progressing steadily in their digital transformation with varying degrees of development. The 2021 report was published by Orient Planet Research (OPR), the market research unit of Orient Planet Group (OPG), in partnership with information and communications technology (ICT) expert and independent researcher Abdul Kader Al Kamli. The index showed that the UAE obtained high scores on all its indicators to reach an average score of 67.83. Saudi Arabia came in next with an average rating of 59.01, followed by Qatar (58.50); Bahrain (57.65), Kuwait (55.10) and Oman (55).

UNREMITTING EFFORTS IN THE FIELD OF DIGITAL TRANSFORMATION: Nidal Abou Zaki, Managing Director, OPG, said: “The GCC E-Performance Index 2021 reflects the member states’ steady efforts to achieve global leadership and competitiveness in today’s digital era. Each country is advancing at its own pace, utilizing a coordinated approach to digital innovations in line with its economic and social development agendas. Heavy investments in technological infrastructures and next-generation tools such as artificial intelligence (AI), the Internet of Things (IoT) and robotics 36

are also being made across the region to help accelerate the countries’ respective economic diversification policies. Such investments are crucial to significantly reinforce their non-oil sectors and fast-track their sustainable development goals.” Abou Zaki added: “We can gain valuable insights from the GCC E-Performance Index 2021 concerning each country’s commitment to transition to the digital era, its progress and the opportunities arising from its digitalization journey. The insights will help decision-makers, policymakers, government leaders and business executives to make the necessary actions to step up their digital transition according to their growth strategies. Their approaches should be designed in a way that will make them even more competitive in today’s highly connected and technology-driven society.”

UAE COMES FIRST: Al Kamli, on the other hand, stated: “As shown by the GCC E-Performance Index, the UAE continues to perform strongly across all indicators. This comes as no surprise given its intensified digitalization initiatives that are comparable with the rest of the world. We can expect to see more from the UAE in terms of its digital innovation efforts to sustain its gains and cement its global stand-

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DEVELOPMENT

five most important global indexes: the Global Competitiveness Index (GCI) 2019; the Network Readiness Index (NRI) 2020; the Government AI Readiness Index (GAR) 2020; the Global Innovation Index (GII) 2020; and the UN E-Government Development Index (EGDI) 2020. The five served as the report’s main indicators.

THE REASON FOR THE HIGH LEVELS OF DIGITAL READINESS IN THE GULF COUNTRIES IS MAINLY DUE TO THE ADVANCED TECHNOLOGICAL INFRASTRUCTURE

ing. But other GCC member states are also expected to up their game to future-proof themselves and better prepare for the changes that will come with the unstoppable 4th Industrial Revolution. Overall, in the Arab world, the GCC will remain at the forefront of the region’s digital journey.” The report pointed out the link between better scores and countries with advanced telecommunication infrastructure. Across the GCC, telecommunication-related investments are rising with further growth projections on the Gulf states’ information and communications technology (ICT) spending. In UAE, the government’s ICT expenditure is forecasted to witness a compound annual growth rate (CAGR) of 8 per cent during 2019-2024 as per the findings of GlobalData. During 2019-2024, the same data and analytics company also predicted an increase in the ICT spending of Qatar at 9.2 per cent CAGR; Bahrain, 8.6 per cent CAGR; and Oman, 11.3 per cent CAGR. The scene is no different in their neighboring Saudi Arabia, where the overall ICT spending this 2021 is projected to reach USD 32.9 billion, up 1.5 per cent in 2020, according to an International Data Corporation (IDC) study. To check the region’s digital progress, the GCC E-Performance Index measured the GCC member states’ competitiveness, network and AI readiness, innovation and e-government development. Its findings were based on the

PROMISING OPPORTUNITIES IN DIGITAL TRANSFORMATION: The World Economic Forum’s GCI is defined as the yearly assessment of the drivers of productivity and long-term economic growth. Portulans Institute’s NRI positions 134 economies accordingly based on their performance across 60 variables, while GAR of the International Development Research Centre (IDRC) and the Centre de recherches pour le développement international (CRDI) studies the ability of each country to integrate AI into public service. GII presents data on innovation and is co-published by Cornell University, INSEAD and the World Intellectual Property Organization (WIPO). Lastly, EGDI, as per the UN, explores how digital government can facilitate integrated policies and services across the 193 UN member states. To compute the average of each GCC country per indicator, the research team behind the GCC E-Performance Index adjusted all scores to follow a unified scale of 0 to 100, allowing for ease of comparison. This methodology was adopted given that not all indicators utilize the same scale. The countries were then sorted according to the calculated average, beginning with the highest value. The report presented both the regional and global rankings of each member state per indicator. Regionally, the UAE scored 85.55 on the GCC E-Performance Index’s EGDI indicator and 75 on the GCI indicator. Its scores under NRI, GAR, GII were 64.42, 72.40 and 41.79, respectively. Saudi Arabia’s average ratings were 70 (GCI); 57.97 (NRI); 56.23 (GAR); 30.94 (GII); and 79.91 (EGDI). Qatar’s scores were 72.90 (GCI); 60.26 (NRI); 56.78 (GAR); 30.81 (GII); and 71.73 (EGDI). For Bahrain, it scored 65.40 (GCI); 57.59 (NRI); 54.75 (GAR); 28.37 (GII); and 82.13 (EGDI). Kuwait’s ratings were as follows: 65.10 (GCI); 52.27 (NRI); 50.61 (GAR); 28.40 (GII); and 79.13 (EGDI). Finally, Oman’s scores were 63.60 (GCI); 55.33 (NRI); 52.10 (GAR); 26.50 (GII); and 77.49 (EGDI)

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EXPO DUABI 2020 ENDED WITH A CLOSING PARTY THAT INCLUDED A LARGE GROUP OF INTERNATIONAL SHOWS THAT DAZZLED THE WORLD

FROM THE COURSE OF TIME… Imad Eddine Oubiri

Sr. Advisor - Director of Community and Industry Engagement American University of RAK

EXPO 2020 DUBAI A LEGACY THAT WON’T DISAPPEAR

hat began as an ambitious vision for the establishment of the Expo Pavilion in Japan 50 years ago has flourished into an international expo hosting 192 countries, embraced by the UAE and enriched by greater brilliance, elegance and beauty. Expo 2020 Dubai is the first expo in Expo’s 170-year history to be held in the Middle East, Africa and South Asia, a global gathering that celebrates all humanity, summed up and embodied in the UAE’s 50-year history in a resplendent mosaic: Expo 2020 Dubai. As the finish line began to loom for the launch of Expo 2020 Dubai, reports of the Covid-19 virus began to dominate the news. After a unanimous vote by member states, Expo was postponed until 2021, and only then did Expo 2020 Dubai welcome the world. Expo 2020 Dubai opened its doors to the public on October 1, 2021 with the participation of a glittering group of

international stars, as well as a live orchestra, performing under the illuminated dome of the link at an opening ceremony that will remain firmly in the hands and minds forever. On the edge of the Empty Quarter are the remains of an old shopping mall, Sarouq Al Hadid. Where Archaeologists excavated the ruins in the area, and an artifact discovered by His Highness Sheikh Mohammed bin Rashid Al Maktoum: A uniquely designed ring that inspired the official logo and scheme of Expo 2020 Dubai. With a slogan entitled “Connecting Minds and Creating the Future,” Expo presented three sub-themes that address the key global issues and challenges facing the world today: mobility, opportunity and sustainability. Expo 2020 Dubai combined sustainable design with stunning structures, embodied in stunning and inspiring architecture. Including buildings that can generate power, electricity, produce oxygen, or even maintain the local climate. With more than 250 restaurants covering 62 types of cuisine, including 27 unprecedented innovative concepts and more than 40 street dining outlets, Expo 2020 Dubai offered a wide range of dining and hospitality options to suit all tastes and events. After six months of “Connecting Minds and Creating the Future,” Expo 2020 Dubai closed its doors in a stunning closing ceremony featuring a wide range of international shows, under the magnificent Wasl Dome, lit up with stunning images that dazzled the world

BUSINESS

ILIJANA VAVAN Milestone Systems new Chief Revenue Officer Milestone Systems announces that Ilijana Vavan joins the executive leadership team as the new chief revenue officer, effective February 2022. Vavan’s primary responsibilities include direct oversight of the company’s global go-to-market organization — such as channel strategy, sales operation, partner sales, and digital sales — as well as leadership and mentoring of the global sales team. She will be based in Munich, Germany. Vavan has expertise in commercial sales strategy and has worked in senior sales and management roles as well as technical roles. She joins Milestone from UiPath, where she worked as their regional vice president. At Milestone, she will take a hands-on approach to manage the day-today business and will help the company scale its sales operation, achieve business excellence, and strengthen the structure for the channel business, according to the company.

NEW HIRIGN

JAWAD TOUKNA Joins Dynatrace as Regional Director for Middle East Software intelligence company Dynatrace announced the appointment of Jawad Toukna as the new Regional Director for Middle East. The Dubai-based executive brings 20 years of IT experience to the role where he’ll focus on propelling Dynatrace’s expansion in the region, while building a scalable, collaborative work environment. Aside from his years of industry experience working across the Middle East, Africa, and European markets, Jawad holds an Executive MBA from Harvard Business School and Executive Program for Technology Chief Operation Officer from Stanford University.

ATEED HIJAZI The account executive across the MENA region Leading ESG technology provider Emex has appointed Ateed Hijazi as its account executive across the MENA region. Hijazi will take the lead on client relations in the Middle East and North Africa, and Asia- Pacific. After pinpointing a lack of awareness among MENA businesses surrounding ESG practices,Emex aims to inform businesses about the importance of collecting data surrounding their sustainability initiatives. This will help build trust and enhance engagement with investorsand other key stakeholders. Based in Dubai, Hijazi previously worked at EY as a senior consultant with a focus on compliance and governance, and then to Deloitte where he focused on strategy (including EHS) and business operations.

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TOURISM

LIVE RAK PLAY

MAKE RAS AL KHAIMAH YOUR HOME AND ENJOY YEARROUND SUNSHINE AND NATURE

The nature-based Emirate is extending its popular remote working initiative to offer global professionals the chance to relocate for up to 12 months. From five-star hotels and resorts to captivating scenery, white sandy beaches, and laid-back vibes, check out Ras Al Khaimah for the ultimate working from home location Ras Al Khaimah Tourism Development Authority (RAKTDA) announces an extension to its popular ‘Live RAK Play’ programme, inviting digital nomads to swap an idyllic Zoom backdrop for the real thing and relocate to the Emirate for up to

UPDATE DEVELOPMENT MARKETS

a year. Available now until 30 September 2022, ‘Live RAK Play’ features a range of long-stay offers across numerous hotels with seamless connectivity and discounts on dining, laundry, and car rental. “We’ve seen first-hand the impact of remote working on employee wellbeing,” said Raki Phillips, CEO of Ras Al Khaimah Tourism Development Authority. “Our own company culture, which reflects a host of workplace initiatives to help our people both professionally and personally, has given employees the space to focus on their mental wellbeing. As the government entity with the Happiest Work Environ-

TOURISM

UPDATE

MAKE A VIDEO CALL AT THE BEACH, ANSWER EMAILS ON THE TOP THE MOUNTAINS, AND ENJOY PREMIUM ENTERTAINMENT EXPERIENCES

ment in Ras Al Khaimah and a ‘Great Place to Work’, we’re driven to create even more opportunities and ‘Live RAK Play’ taps into this culture by giving remote workers the chance to call our beautiful Emirate home.” INNOVATIVE WORKING ENVIRONMENT: With an array of new and exciting activities to weave into the daily routine – not to mention an abundance of outdoor activities known to support mental health and reduce stress – Ras Al Khaimah offers the ultimate ‘working from home’ setting. Visitors taking part in the Live RAK Play’ programme can check their emails from the UAE’s highest restaurant, 1484 by Puro, located on Jebel Jais, the highest mountain in the UAE, or take video calls from one of many white sandy beaches. They can even complete the company training module while lounging poolside and enjoying the services at one of the Emirate’s stunning hotels across beach, desert, and city locations. Once done for the day, guests can take advantage of the plethora of experiences available; from a refreshing ocean swim or visit to the spa, to hiking

around Wadi Showka, off-roading in the desert or dining at one of Ras Al Khaimah’s world-class venues. To make the most of their downtime and weekends, they will also receive two complimentary tickets to either Suwaidi Pearl Farm, the only pearl farm in the UAE or Jais Adventure Park, home to the Jebel Jais Flight: The World’s Longest Zipline and much more. A half day-mountain excursion at the Bear Grylls Explorer Camp is also included for a truly unique outdoors experience. Ensuring optimal levels of work productivity in Ras Al Khaimah, the ‘Live RAK Play’ programme offers seamless and complimentary Wi-Fi, as well as discounted rates on laundry, telephone calls and food and beverage. It also provides appealing hotel rates, complimentary airport transfers, car rental deals and enticing offers across Al Hamra Golf Club, outdoor experiences with Adventurati Outdoors, Adventure Sports as well as The Dunes for desert safaris, dune bashing and camping. ‘Live RAK Play’ can be booked at the following participating hotels and attractions:

HOTELS · Hilton Ras Al Khaimah Beach Resort · Doubletree by Hilton Resort & Spa Marjan Island · Hampton by Hilton Marjan Island. · Radisson Resort RAk, Marjan Island. · Jannah Hotel Apartments and Villas. · Hilton Garden Inn. · Doubletree by Hilton Ras Al Khaimah. · Citymax Hotel Ras Al Khaimah. · Action Hotel Ras Al Khaimah. ACTIVITIES · Al Hamra Golf Club · Adventure Sports · The Dunes – camping & safari · Adventurati Outdoor · Suwaidi Pearls Farm · Warrior Group · Low Price Rent A Car So, what are you waiting for? Come and ‘Live RAK Play’ in the nature-based Emirate. Book your package through any of the participating hotels through a travel consultant. For more details, check out: visitrasalkhaimah.com/live-rak-play

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ALULA

EXPLORE THE WORLD’S MASTERPIECE AlUla, The World’s Masterpiece, is one of the oldest cities in the Arabian Peninsula and home to Hegra, Saudi Arabia’s first UNESCO World Heritage site. A land rich in historical, geological and geographical significance, this ancient city, once at the crossroads of The Silk Road and The Incense Route, has only recently been re-discovered by the world.

TOURISM

MY DESTINATION

Alula is among the most important heritage sites in the Kingdom. It has archaeological antiquities, which date back to the Nabataean State, and into the Islamic era and other sites dating back to the two Dadanian and Lahyanian Kingdoms, which controlled the caravan trade. There’s a reason we call it The World’s Masterpiece. There’s magic hidden in the canyons; history written on the walls. AlUla, offers adventurous experiences, outdoor experiences, and more for every type of traveller. In AlUla. There is Winter at Tantora festival, a spectacular celebration of art, music and heritage, There is something to do every day, and night. Here 10 places don’t miss to visit at AlUla:

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OLD TOWN With nearly 900 houses, 400 shops and 5 town squares, the Old Town of AlUla still contains remnants of some of the original stone and mudbrick buildings constructed here. AlUla Old Town is located in the narrowest part of the AlUla Valley. Built on a slight elevation, the town is overlooked by the Musa bin Nusayr Castle, a citadel dating back approximately to the 10th century.

UWAIRID HARRAT It rises 600 feet, with length reaches 180 km and its width is approximately 90 km. It is famous for its rugged terrain and various valleys, and it has volcanic craters. On a straight line along the free, it branches out in the form of very many tongues and arms between reefs and valleys.

THE ARCH Its bridge-shaped structure, which resembles a rainbow flanked by two clouds, is a rare sight indeed. Though you will be enthralled by this sprawling display of sandstone, don’t miss spotting semiprecious desert diamonds on-site. You can eye these multi-colored pieces of quartz embedded in the rock itself and scattered on the surrounding ground.

JABAL ALFIL Set in golden desert sands and climbing three storeys into the Saudi Arabian Sky, is the a we-inspiring Elephant Rock. Unlike the ornate, handcarved facades of nearby Hegra’s Nabataean tombs, the “trunk” and “body” of this monolithic red sandstone beast were shaped by natural forces — millions of years of wind and water erosion.

TOURISM

MADAIN SALEH Also called “Al-Hijr” or “Hegra”, it is the first Saudi site listed by UNESCO as a World Heritage Site for its huge historical significance. Mentioned in the Holy Quran. Tombs dug neatly in Mada’in Saleh still tell the tales of the fallen kings, dignitaries and merchants who for centuries were the rules of the region’s game of politics and trade of the Incense Route and the site served as a link between Asia, the south of the Arabian Peninsula and the Levant, as well as Pharaonic Egypt and the Roman Empire in the Mediterranean. AL-KHORAIBA This site is part of the ruins of the ancient city of Dadan, which was Dadanian Kingdom’s metropolis. It is followed by Lehyan. The two are ancient Arabian kingdoms.

MY DESTINATION

JABAL IKMAH In a beautiful desert landscape warmed by the sun, the largest “open library” in Saudi Arabia sits tucked away in a remote canyon valley. Across the AlUla Valley lie thousands of inscriptions in Aramaic, Dadanitic, Thamudic, Minaic and Nabataean.

JABAL ATHLAB located in the northeastern side of Al-Ula, surrounded by soft rocks and a scenic sandy desert. It is situated on the Siq Road and there is a large carved hollowed rock inside the mountain, referred to by its visitors as the Diwan of Mount Athalab. Jabal Ithlib, the highest sandstone outcrop on the site, which in ancient times was carved with niches, altars and other monuments dedicated to Nabataean deities.

JABAL AL-HAWAR: Is a large, smooth mountain that is narrated that the elegance of the Prophet Of God “Saleh” came out of it and the son of the camel came to him after the neck of the naqa, the mountain is located in the area of stone north of AlUla

HARRAT OWAIREDH It is at the edge of a volcanic plateau overlooking the entire city of Alula. It is used as a terrace and a park that looks out over Madaen Saleh and Heritage Village of Alula. The view becomes even more interesting and beautiful at sunset.

FLYING TO ALULA AlUla international airport (ULH),the newly renovated airport is a beautiful and welcoming entrance into AlUla, located just a 30-minute drive from the city centre. Saudi Airlines, flynas, operates flights into and out of ALULA. Recently, Flydubai has inaugurated its new service to AlUla, becoming the first national carrier of the UAE to offer direct flights from Dubai to to AlUla. Sources: www.experiencealula.com, www.saudiarabiatourismguide.com

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Healthy FatBroccoli frozen ready meals launched in UAE market Start-up company Nowadays Trading has officially marked its entry to the UAE’s healthy fast-food segment with the launch of its one-of-a-kind, market disruptive healthy frozen ready meals. The newly introduced FatBroccoli products features locally produced healthy frozen food with 100% natural ingredients. The nutritious fast-food will be available in schools, gymnasiums, universities, hospitals, petrol stations, government offices, service centres, airports, and other high footfall areas. From UAE, FatBroccoli aims to expand into new territories, such as having 20 outlets in other GCC markets are already in the pipeline.

2022 Patrol Super Safari lands in Abu Dhabi market Al Masaood Automobiles, the automotive arm of Al Masaood Group and the exclusive distributor for the Nissan vehicles in Abu Dhabi, Al Ain, and the Western Region, announced that the 2022 Nissan Patrol Super Safari SUV is now available across its showrooms. The 2022 model sports full aesthetic and technological upgrades that are expected to attract more attention and meet the ever-evolving needs of the regional market. The latest iteration will continue the Patrol’s legacy and deep-rooted heritage in the Middle East, driven by its power and superior off-road capability. 2022 Nissan Patrol Super Safari is available with a choice of three bold exterior colours – black, white, or gold – with a unique choice of grey or gold accents across the roof, bumpers, wheel arches, and spare tyre cover for drivers to create a combination of their choice. In Abu Dhabi, the white colour has reigned the most popular from amongst the model’s colour mix. However, the female customer segment has shown a consistent affinity to the Black with Twilight Grey accents in 2021 and 2022. The striking ‘Super Safari’ decal along the side of the car is complemented by a bold set of 17-inch diamond cut alloy wheels that contribute to the SUV’s head-turning presence.

Jais Sledder...Take A eide through Jebel Jais RAK Leisure and Ras Al Khaimah Chamber of Commerce and Industry are delighted to unveil the opening of the region’s longest toboggan ride, Jais Sledder, atop the UAE’s tallest peak. Already renowned as the epicenter of adventure in the region, the launch of Jais Sledder at Jais Adventure Park will provide an exhilarating new attraction for thrill-seekers and families to enjoy. Visitors can head to the mountains and enjoy a variety of activities, including the Jais Flight, the world’s longest zipline, Jais Sky Tour and the Bear Grylls Explorers Camp. The highest restaurant in the UAE, 1484 by Puro, with its recently expanded terrace and the new rooftop lounge, The View by 1484, also serves up an indulgent menu to keep visitors fueled all day long. To find out more about and to book your tickets, please contact +971 4 815 7333, email info@visitjebeljais.com, visit visitjebeljais.com or follow @jais_adventure_park.

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MARKETS

Haber brings AI driven efficiency and sustainability accelerator to the MENA region Haber, an India based AI start-up, steps into the MENA market with industry-transforming AI technology. It provides solutions that automate tedious manual processes such as sample collection, measurement, analysis and intervention at factories. Haber is entering the MENA region, which is a very promising market, estimated to be valued at $2 billion across industries. The AI solutions will ensure that the industries are at their most efficient as well as sustainable by reducing both water consumption and carbon footprint. Ensuring overall equipment efficiency has been the key behind Haber’s success. Since 2017, Haber has helped the industry save fifty billion litres of water and eliminate half a million tons of carbon emissions.

Vatika Voices Empowers 1000 Arab Women to Launch Successful Businesses Vatika Voices, a unique campaign designed by the leading hair care brand Vatika along with Entreprenelle, a social development & business impact organization, in December 2021 to empower women across GCC and MENA region. The shortlisted women took a 4-day boot camp in their fields of choice covering different disciplines. These included business modeling, idea validation, business marketing, sales techniques and planning, business development strategies, financial planning, and pitching. The online courses ran for over 25 hours through Entreprenelle covering numerous business areas, and providing women with the required tools under each business. The courses provided in-depth knowledge across Fashion, F&B, Marketing, Tech, Sports, Makeup and ten others.

Pacific Prime Dubai Wins Cigna Middle East’s Individual Broker of the Year Award 2021 Global insurance brokerage and employee benefits specialist Pacific Prime Dubai is the proud recipient of Cigna Middle East’s Top Producer of Individual Insurance Business Award 2021. The Cigna team presented the award on February 22nd, 2022, at Pacific Prime Dubai’s office as part of the health services company’s third Middle East Brokers Awards. Upon presenting the award, Leah Cotterill, Chief Distribution Officer of Cigna – Middle East, said, “Cigna is proud of its partnership with Pacific Prime. Their recognition as Cigna’s Individual Broker of the Year is driven by an in-depth understanding, professionalism, and unparalleled service to our clients across sectors. At Cigna, we look forward to continuing our collaboration with Pacific Prime in the years to come.” David Hayes, Regional CEO at Pacific Prime Dubai, was one of the recipients who received the award on behalf of Pacific Prime. “It’s a real honor to receive this award and to be recognized in our industry by an internationally acclaimed insurer like Cigna. This award is a testament to our professionalism and unparalleled servicing of our individual clients. We have worked with Cigna for many years now and look forward to continuing our partnership and achieving more together in the years to come.” RAK BUSINESS

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