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HH Sheikh Mohammed Bin Rashid Al Maktoum has approved several projects as part of the emirate’s Traffic and Transportation Plan 2030. These include the Shindaga Crossing (to replace the current tunnel), several new marine stations, expansion to the Burj Khalifa metro station and a 120 mt JBR pedestrian bridge.

Emaar Properties continues with its recent flurry of launches; this time sees the release of two towers (52 storey and 46 storey) – Act One and Act Two. These residences, overlooking Dubai Opera, will house 718 luxury apartments.

Damac Properties is set to sell individual plots in its Akoya Imagine project, with prices starting at US$ 163k. The developer is also launching Tower 108 in JVC – a 33-storey building of serviced apartments, to be operated by Damac Maison de Ville.

A JV between Nakheel and Spanish hospitality giant, RIU Hotels & Resorts, has started work on the US$ 245 million, 4-star, 800-key resort hotel on Deira Islands. Situated on a massive 3.4 million sq ft plot, the project is slated to open in Q1 2019. Other developments on the man-made islands include Deira Mall and Deira Islands Night Souk.

UAE-based Dhabi Contracting LLC won a US$ 409 million Nakheel contract to build its 2 million sq ft Al Khail Avenue retail, dining and entertainment hub, including 350 outlets and a 252-key, 18-floor hotel. Located on the edge of JVT – a 13k residence community – the project is set for completion by early 2019.

Nakheel is also planning to launch a Dine-In Cinema in its 1.4 million sq ft The Pointe development, adjacent to Atlantis The Palm. The facility will be managed by Reel Cinemas, part of Emaar Entertainments, who earlier signed a contract for a 14-screen operation in Al Khail Avenue mall.

Adjacent to two of its other attractions, Dubai Safari and Pet Market, Dubai Municipality announced that its 20k sq mt, US$ 6 million Crocodile Park will open by the end of the year.

MarketView reported that residential property prices have fallen 12% on average, over the past 12 months, and 2% quarter on quarter – the 6^th straight quarter of falls, resulting in a 12% year on year decline. CBRE put a slightly lower estimate on Q2 prices falls and expect an average dip of 3% – 5% in the coming months.

According to the latest RICS report demand for commercial property fell for the third quarter in a row caused by the ongoing economic slowdown and a disappointing take-up of increased supply.

Latest STR figures confirm that the Dubai hospitality sector (along with the rest of the region) continues to face tough market conditions. In June, occupancy levels sank to just 51.2%, compared to 67.5% a year earlier. Other indicators headed south, including average room rate (down 9.2%), revenue per available room falling 31.1% to US$ 88.30, total revenue per available room to US$ 187 and gross operating profit per available room to just US$ 12. (Currently, the emirate has 67 hotels, with 20.9k keys, in the pipeline to be built prior to Expo 2020).

June passenger traffic fell 1.0% to 5.9 million compared to a year earlier, although H1 numbers were up 5.8% to 40.5 million. Both June and YTD cargo figures for Dubai International were positive – up by 3.9% to 226k tonnes and 3.8% to 1.28 million tonnes respectively.

Wilo is expanding its operations in JAFZA South and is to build new offices, a warehouse and training academy on a 8k sq mt site. The German pump manufacturer expects the new facility to open in late 2017.

According to Qatar-based Al Maya Group, the owner of the failed BHS franchise in the UAE, five branches of the UK retailer will close, including four in Dubai – Al Ghurair Centre, Dubai Mall, Festival City and Lamcy Plaza.

The Fathima Group is set to develop a US$ 19 million, 100k sq ft food manufacturing plant, as well as a US$ 30 million corporate office and logistics centre in DIP. The UAE-based retailer is also set to spend a further US$ 54 million to open four hypermarkets in the country, two in Saudi Arabia and one in Thrissur in India.

According to recent reports, UAE personal debt has risen 7.5% to US$ 117.2 billion over the past year, equating to an average resident outstanding of nearly US$ 12k. It appears that as remuneration levels are not keeping up with increases in living costs, such as housing and education, people are having to borrow more.

DP World has signed an agreement with US company, Hyperloop One, to study the operation and financial viability of a tube-based transport system, for use at its home base of Jebel Ali. Reportedly the pods used – for both cargo and people – can travel at an impressive 1.2k kph.

The port operator has also seen its long-term issuer default rating upgraded by Fitch from BBB- to BBB, with the credit agency maintaining the company on a stable outlook.

Although H1 revenue was up 10.2% to US$ 2.0 billion (and 2.5% on a like to like basis), DP World has cut back on its ambitious expansion plans, in the wake of the global economic slowdown and softer market conditions. It will now delay both the 1.5 million unit expansion due for Terminal 3 until next year and construction of Terminal 4 until a later date, when trade conditions so warrant.

Shuaa Capital posted a Q2 loss of US$ 14 million, as revenue dipped 25.0% to US$ 12 million. The Dubai-based investment bank attributed the disappointing results to a US$ 15 million impairment charge, (relating to its SME lending unit, Gulf Finance), low oil prices and volatile financial markets. In June, the Dubai Banking Group, the global Shariah compliant financial investor of Dubai Group, divested its 48.3% shareholding in the firm to Abu Dhabi Financial Group for a reported US$ 98 million.

Another offshoot of Dubai Holding, Dubai Financial Group, has sold its 11.8% share in Egyptian investment bank EFG-Hermes to Natixix. Although no figures were available, the deal could be worth just over US$ 100 million. (In 2014, the ultimate holding company, Dubai Group, negotiated a US$ 10 billion creditors’ restructuring programme).

There have been mixed results emanating from the June reporting season. Amanat Holdings posted a US$ 6.5 million H1 profit – up from US$ 400k a year earlier. Meanwhile Amlak Finance recorded a six fold increase in half yearly profits from US$ 4 million to US$ 24 million, largely on the back of one-off sale of land plots in Q1. However, because of increased provisions (US$ 8 million) and a fall in real estate prices, the company made a Q2 loss of US$ 10 million. Damac saw a slowdown in Q2 profit, with a 37.6% slide to US$ 242 million, and H1 results down 27.0% to US$ 529 million.

Marka, a retail firm with 50 outlets and a further 19 to open this year, posted a US$ 5 million loss, despite an 18.2% hike in quarter on quarter revenue to US$ 24 million. Another company in negative territory was Dubai Parks & Resorts reporting a Q2 loss of US$ 16 million – almost four times the deficit recorded in the same period last year. Opening in October, the theme park expects first year revenue of US$ 654 million and a marginal loss of US$ 10 million followed by profits in the ensuing two years of US$ 29 million and US$ 68 million respectively.

Still in negative territory, Arabtec reported a Q2 loss of US$ 51 million, compared to a US$ 196 million deficit a year earlier, despite a 20.9% hike in revenue to US$ 589 million. The developer indicated that it has a current project portfolio of US$ 6.2 billion – 12.5% higher than this time last year.

Despite income from its properties rising 29.3% to US$ 10.6 million, Nasdaq Dubai-quoted Emirates Reit posted a 63.8% slump in Q2 profits to US$ 9.4 million.

The DFM opened on Sunday at 3524 and fell back 1.3% to close the week on 3472 by Thursday (18 August 2016). Volumes, on the last day of trading were at 122 million shares, valued at US$ 53 million, (cf 122 million shares for US$ 53 million, the previous Thursday). Bellwether stock, Emaar Properties, was down US$ 0.03 to US$ 1.93, whilst Arabtec was US$ 0.01 higher at US$ 0.42.

Brent crude continued its recent upward trend, closing the week US$ 3.81 higher at US$ 50.89; gold was also up – US$ 15 – to US$ 1,357 at Thursday’s (18 August 2016) close.

This week saw the death of one of the most corrupt sports administrators and the arrest of a leading Olympic official. Joao de Havelange was President of the Brazilian Sports Confederation for 25 years to 1973, President of FIFA from 1974 – 1998, Honorary President of FIFA from 1998 – 2013 and a member of the International Olympic Committee from 1963 – 2011. In 2012, Swiss prosecutors found that he and his son-in-law, Ricardo Teixeira, had taken at least US$ 41 million in bribes for World Cup marketing rights.

Meanwhile Ireland’s now infamous ticket tout, Patrick Hickey, president of the European Olympic Committee, was arrested in Rio for being involved in a lucrative ticket-scalping scheme. It is alleged that he could have made a US$ 3 million profit by using his status to help “transfer tickets to an unauthorised vendor who would set high fees and disguise the transaction as a hospitality package.”

Last November, IAAF president (from 1998 – 2015) Senegalese Lamine Diack was arrested in France on suspicion of corruption and money laundering. It was alleged that he had received Russian kickbacks for covering up positive doping tests of their athletes. A later World Anti-Doping Agency report stated that corruption was “embedded” in the world athletics body and that Diack was responsible for organising and enabling the conspiracy and corruption.

Recent events just serve to confirm that along with the shenanigans of Sepp Blatter and his cronies, sporting world bodies, such as the IOC and IAAF are just as rotten as FIFA. It does not take too much imagination to think that other sports could be tarnished by the same brush.

Cisco Systems is set to cut its 70k workface by 20%, as the network equipment maker focuses on shifting its core business from hardware to software-centric. The US company is not the only tech giant laying off staff and follows the likes of HP Inc (33k), Microsoft (18k), Nokia (15k) and Intel (12k).

The Walmart-owned supermarket chain, Asda, one of the UK’s “big four”, posted its 8^th successive quarterly fall with a Q2 7.5% drop, following a 5.7% decrease in the previous quarter. A five-year US$ 2 billion investment plan to revive the supermarket’s fortunes, which will see reduced prices and enhanced ranges, aims to keep in touch with Sainsbury’s, Tesco and Morison’s along with the ever expanding threat of the newcomers – Aldi and Lidl.

It is interesting to note that online sales in the UK now account for 14.2% of all retail purchases having jumped 16.7% in July. One company taking advantage of this change in consumer buying habits is Amazon. The online retailer, having already invested US$ 6.0 billion in the country over the past five years, is planning a 55% jump this year in its workforce to 15.5k.

The bad man of UK retailing, Sir (?) Philip Green, has been told not to “swan about” on his newly acquired US$ 131 billion super yacht in Greece and return to sort out the mess he left when he sold BHS for US$ 1 to former bankrupt Dominic Chappell. The retail chain collapsed in April with 11k job losses and a US$ 900k pension black hole affecting 22k former staff.

A UK study has revealed that 23% of all insolvencies in 2015 were the result of late or non-payment of accounts, with the problem rapidly deteriorating. If there were a government strategy to address this problem, then many of the 16k SMEs that failed last year would still be adding value to the economy.

Unemployment figures in the UK continued to fall – in Q2, 52k fewer meant that 1.64 million (equating to 4.9%) people were out of work whilst 31.8 million were in employment at the end of June. Pay growth – at 2.3% – also improved on the previous month. These are the best employment figures since August 2005.

Despite a seasonal increase in tax receipts, UK’s budget surplus at US$ 1.3 billion was lower than market expectations and 16.3% lower than the surplus in July 2015. Q2 public borrowing, at US$ 31.0 billion, was 11.0% lower than a year ago but this is still below the government’s 26% target; this in turn restricts what Chancellor Philip Hammond can do to boost the post Brexit economy when he launches his autumn budget later in the year.

Although CBA posted a 3.0% hike in annual profits to US$ 7.0 billion, another credit agency has voiced their concern. Low wage growth, historically low interest rates, surging house prices and record household debt are the main drivers that prompted Moody’s to down grade Australia’s banking system (as well as the big 4 banks – ANZ, CBA, NAB and Westpac) from stable to negative. Private sector credit has jumped 12% to 155% of GDP since January 2014, as bank profits fall following the commodity slowdown. (This week, Woodside Petroleum posted a 50% slump in H1 profits to US$ 340 million, on a 9% hike in revenue to US$ 1.9 billion, as BHP recorded a massive US$ 6.4 billion annual loss).

While it has issued earlier warnings the same agency has maintained the country’s prized AAA rating – one of the few in the world. Moody’s reaffirmed its stable outlook on the basis that Australia has managed somehow to escape much of the economic malaise faced by other developed countries.

However, the country that relies a lot on its Chinese relations (especially trade and travel) could be heading for a bumpy ride. Earlier in the year, the Turnbull government blocked the Chinese from acquiring S Kidman & Co, that owned almost 1% of the country’s landmass, and this week stopped them bidding for power generator, Ausgrid. Worries about security were deemed more important than economic benefits. To add to their woes, it seems likely that another leading trade partner, USA, may lean on them to assist if freedom of navigation in the South China Sea becomes more of a problem and action has to be taken. How the Chinese would react will not be to the liking of Australia – a country that will find itself Between A Rock And A Hard Place!

Dubai Municipality is still considering the whereabouts of a new tourist landmark, Dubai Steps – potential locations include Dubai Creek, Dubai Marina and Union Square. The 100 mt, 500-step structure will be unique because it will lead to nowhere.

Following its success with its initial release last month, Dubai Properties launched phase 2 of Bellevue Towers project, located in Business Bay. The 23-storey tower will house 300 apartments and be ready for hand over in 2019.

The IMF notes that the quality of loans to Dubai households has improved, as the ratio of non-performing accounts has fallen from 10.0% to 4.9% over the past three years – a sure indicator that this realty slowdown will not have the same negative impact as occurred after the GFC.

The authority estimated that Dubai’s average residential prices dropped 11% in 2015. Meanwhile JLL has indicated that over the past 18 months prices have fallen 15%, with villa prices in Q2 down 5%. Chestertons’ MENA reported that Q2 villa prices nudged 0.7% higher, whilst ValuStrat indicated a 1.1% decline over the same period.

As usual for Dubai realty, there are a plethora of conflicting reports about the state of the market. Phidar estimate that, quarter on quarter, there were 3.7% and 1.1% falls in apartment and villa prices. The firm expects further declines over the next 18 months, as institutional buyers and occupiers keep out, citing reasons such as the strong greenback and the uncertain economic climate. Land Sterling also reported Q2 falls in apartment prices – but at the much lower rate of 0.4%. On the other hand, Reidin has reported 1% increases in Q2 property values. Seven surveys, seven different findings!

A recent federal government directive sees SMEs, which are members of the Youth Project Development Organisation and owned by Emiratis, no longer requiring a bank guarantee to continue their businesses. The aims of the exercise are to encourage young locals to embrace the competitive knowledge-based economy and support their progress in a slowing economy.

One of Dubai’s lesser known free zones is Dubai Science Park and, as the name suggests, one of its main aims is to foster the growth of the UAE’s science sector. Among the facility’s 300 companies are a mix of SMEs and international companies, many of which will relocate to DSP’s new twin towers, on their completion early next year.

Thumbay Group has announced that it plans a US$ 327 million investment to build 6 hospitals and 12 clinics in various countries including the UAE, Egypt, India, and Qatar. Last month, the Dubai-based company had indicated it would spend US$ 163 million in the UAE on various healthcare and residential projects.

Following claims by the three biggest US carriers – American, Delta and United – that Gulf carriers, including Emirates, received massive government subsidies, it seems that the State Department, having studied the complaints, will take no formal action. The US administration has indicated that it will continue its commitment to the Open Skies policy and noted its economic benefits for the US economy.

Budget airline flydubai is travelling further afield, with news that it plans to fly to Bangkok, as from November. There seems to be a growing trend for such carriers to move away from just their traditional 4-hour or less routes to include longer-haul destinations. More effective and improved aircraft make this jump possible – the new Boeing 737 Next-Generation can now fly 37% further (up to 5.5k km) than older models.

A BMI report estimates that, following a decade of annual 17% asset growth, regional banks are set to see a marked decline to an average of 6%, over the next four years. The main driver is the slump in oil revenues, resulting in governments having to make good fiscal deficits, utilise local banks and reduce their spending.

Having already invested upward of US$ 900 million in Turkey, Dubai-based Abraaj Group has closed its 2014 Abraaj Turkey Fund I, which had raised US$ 486 million. The fund has already made two investments and focuses on mid-sized businesses that rely on domestic consumption, such as healthcare and logistics.

According to a recent study by TopHotelProjects, Dubai and Abu Dhabi have a combined total of 155 hotels projects (with 47.7k rooms) in the pipeline, with a further 28 (6.3k keys) in the other five emirates. Most will be ready for Expo 2020, with 56 and 58 slated for opening in 2017 and 2018 respectively. The top 10 Dubai hotel projects are:

DP World reported a 1.2% increase in H1 gross container volumes on a like-for-like basis, handling 31.4 million TEUs (20’ equivalent units). Stronger results from Europe and India made up for “challenging” market conditions in Australia and Latin America, as well as a 6.0% domestic fall, as lower-margin cargo continued its downward trend.

The Dubai Chamber of Commerce and Industry has seen its membership grow 4.3% to 193k in the first half of this year; most of the new 8k members were SMEs. In H1, registered businesses recorded exports and reexports, totalling US$ 37.6 billion, with Saudi Arabia, at US$ 12.0 billion, the leading destination.

Privately owned Dubai-based Pacific Controls is reportedly in discussions with banks, in relation to a US$ 381 million debt restructure plan. The tech company, founded in 2000, is making use of a special mechanism, introduced by the banks, in order to help such companies affected by the likes of slow payments and working capital issues.

After four months of price increases, the Ministry of Energy has announced that Special 95 will drop 8.5% to US$ 0.44 per litre and diesel by 4.9% to US$ 0.48 for the month of August,

It is reported that the Emaar Properties Chairman, Mohammed Alabbar, has acquired 9.9% of Aramex from its founder, Fadi Ghandour, in a deal worth US$ 142 million. Its Q1 profits were up 11.9%, at US$ 26 million, and Q2 by 45.9% to US$ 34 million, compared to the same period in 2015.

Emaar Malls, 85% owned by its parent Emaar Properties, posted a 11.2% hike in Q2 profits to US$ 125 million, as revenue rose 10.3% to US$ 214 million.

Nakheel recorded a 4.0% hike in H1 profit to US$ 804 million, as it has handed over 1.2k residential units YTD. The developer also opened its first hotel, a 251-key property managed by Accor, located by the newly opened Dragon Mart 2.

Etisalat posted impressive Q2 consolidated results, indicating a 51.0% hike in net profit to US$ 627 million, as revenue moved 2.0% higher to US$ 3.62 billion. The telecoms company, with a 163 million-subscriber base, has declared a US$ 0.109 interim dividend.

Dubai Islamic reported a credible 11.1% hike in H1 net profit to US$ 545 million, as revenue jumped 16.9% to US$ 1.15 billion and impairment charges declined; Q2 profits were up 5.2% to US$ 272 million. Both net financing assets and customer deposits expanded by 12.0% to US$ 29.7 billion and 13.6% to US$ 34.1 billion respectively.

The DFM posted a 31.2% slump in H1 net profit to US$ 38 million, with Q2 profit down 59.6% to US$ 15 million. With overheads remaining relatively flat at US$ 13 million, the disappointing figures were the result of a 22.4% slide in revenue to US$ 62 million, of which US$ 50 million was attributable to operating income and the balance from investment returns. Trading value on the bourse in H1 was down 32.8% to US$ 18.9 billion. (The DFM is planning a new location in Business Bay, having received a 10k sq mt plot of land, valued at US$ 63 million, from Dubai Properties).

The DFM opened on Sunday at 3544 and fell back 0.7% to close the week on 3519 by Thursday (28 July 2016). Volumes, on the last day of trading, were at 164 million shares, valued at US$ 86 million, changing hands, (cf 461 million shares for US$ 156 million, the previous Thursday). Bellwether stock, Emaar Properties, was down US$ 0.04 to US$ 1.87, whilst Arabtec fell US$ 0.01 to US$ 0.40.

Brent crude continued its downward trend, closing the week US$ 3.50 down at US$ 42.70 – whilst gold was marginally higher by US$ 1 to US$ 1,332 at Thursday’s (28 July 2016) close.

Saudi Aramco has awarded a consortium, headed by Hydrocarbon Engineering (LTHE), a US$ 1.6 billion contract to develop the second phase of the Hasbah Offshore Gas Field.

BP reported a 44.6% fall in Q2 underlying replacement cost profits to US$ 720 million, as margins slid and oil prices remained low. The company also took another US$ 5.2 billion charge to cover liabilities from the 2010 Deepwater Horizon disaster, with the final bill being US$ 61.6 billion in legal fees, compensation pay-outs and government penalties.

McDonald’s reported a 3.6% fall in revenue to US$ 6.3 billion, whilst Q2 same-store global sales rose 3.1%; however the US increase was only 1.8% (compared to 5.4% the previous quarter). These returns were lower than market expectations, leading to some analysts predicting a further slowdown – and even a sector recession – within the next 12 months. On the bourses, leading fast-food chains – including Wendy’s, Red Robin Gourmet Burgers, Texas Roadhouse Inc and Noodles & Co – have seen worrying dips in share prices.

Troubled Mitsubishi, Japan’s 6^th largest carmaker, had a disastrous quarter, as profits sank more than 75% to US$ 44 million, with revenue down 14.0% to US$ 4.1 billion. Nissan fared better recording a US$ 31 million Q2 profit, down 11.0%, as revenue fell 8.5% to US$ 25.0 billion, not helped by the strong yen. On the other hand, Peugeot Citroën more than doubled H1 profit to US$ 1.3 billion despite a fall in revenue and deliveries.

Although Airbus posted a 15.8% hike in H1 profits to US$ 1.96 billion on flat revenue of US$ 32.1 billion, it suffered a US$ 1.56 impairment relating to its gearbox problems with its military A400M model (US$ 1.15 billion) and other problems with the A350.

Malaysia Airlines has placed a US$ 5.5 billion order with Boeing for 50 Boeing Max planes as it continues to overhaul its aging fleet. The airline, taken over by the government following the MH370 incident, expects to return to profitability within three years and be listed on the local bourse thereafter.

Air France/KLM is still making losses; however, there has been an improvement with H1 2016 loss of US$ 125 million better than the US$ 174 million in the same period last year.

Deutsche Bank came in with worrying Q1 figures, as profit fell a disastrous 97.5% from US$ 877 million to US$ 22 million, with revenue falling 20.0%. Although its legal costs fell from US$ 1.32 billion to US$ 132 million, the bank still has to settle four large litigation cases, including forex manipulation and misselling of mortgage-backed securities.

As expected, Verizon Communication has acquired Yahoo, with the US telecoms firm paying US$ 5 billion for its search and advertising businesses. The deal does not include the company’s shareholding in Alibaba and Yahoo Japan, said to be worth in excess of US$ 40 billion. Yahoo posted a US$ 4.4 billion loss last year, when its share value plummeted by 34%; in Q1, it recorded a US$ 99 million deficit. Verizon’s Q2 profits have slumped 83% to US$ 702 million.

For the second quarter in a row the number of iPhones fell – this time by 15% to 40.4 million units in Q2; prior to this, sales of iPhones had never fallen since their 2007 launch. Apple posted a 27.0% drop in quarterly profits to US$ 7.8 billion on the back of a 14.6% fall in revenue to US$ 42.4 billion. As the smartphone accounts for up to 67% of the firm’s turnover – and sale numbers expected to dip over the coming months – profit improvements are not expected in the short term.

As active users rose only 1.0% to 313 million, the market was disappointed with Twitter’s Q2 revenue figure of US$ 602 million, even though it was up 20.0%, compared to the same quarter in 2015. The company seems to be moving to more of a breaking news and live video medium than just a social communication platform.

SABMiller shareholders are holding out for a better offer from brewing giant AB InBev, especially now that the pound has depreciated since Brexit. The previous offer valued the company at US$ 100 billion (£70 billion) which would now be worth US$ 92.4 billion. Now the offer has been upped to US$ 104.3 billion (£79 billion). If the deal were to go through, the new entity would produce almost 30% of the world’s beer.

Despite a major decline in fuel prices, American Airlines saw a 44.0% fall in Q2 profits to US$ 950 million, citing increased payroll costs, lower revenue and taxes, as the main reasons for this turnaround in fortunes. The world’s biggest airline also had a marginal reduction in revenue to US$ 10.32 billion.

The world’s last video cassette recorder will be produced by Funai Electric Co later this month. In 2000, the Japanese electronics made 15 million units, of which 70% were for the US market. Last year, with production down to an uneconomical 750k and the company facing mounting supply problems, the decision to cease production was taken.

Yet again another case of blaming Brexit – a Baker & McKenzie’s Global Transactions Forecast estimates that a disorderly exit from the EU could result in a reduction of US$ 1.2 trillion in mergers and acquisitions. However, the global M&A sector had already fallen 16.0% to US$ 1.5 trillion in H1, prior to the 23 June Brexit vote.

A former close ally of IMF chief Christine Lagarde has appealed a court decision forcing him to repay US$ 441 million; this was the sum that Bernard Tapie, also a confidante to the then-President Nicolas Sarkozy, was paid as compensation for a 1993 case against Credit Lyonnais. As French finance minister in 2008, Ms Lagarde approved this unusually high pay-out and now stands accused of negligence, with a possible (but highly unlikely) jail sentence in the offing.

With lethargic growth continuing, it is highly unlikely that Japan will meet its 2020 nominal GDP target of US$ 5.7 trillion by as much as 10%, with an estimated primary deficit of US$ 874 million. Abenomics is clearly not working for the world’s third largest economy and this despite a huge QE package, record low interest rates and structural reforms. Like the IMF, Prime Minister Shinzo Abe has a tendency to amend growth forecasts on a regular basis – and all downwards. On Wednesday, the government announced yet another stimulus package – this time totalling US$ 266 billion, in an attempt to get the economy moving.

Indicating that near-term risks have diminished, the Federal Reserve did not move on interest rates, maintaining them at record lows of 0.5%. The fact that household spending was higher, as unemployment rates head the other way, seem to be precursors of a hike in September, although inflation at 1.6% is still below the target number of 2.0%.

Much has been written about the shenanigans associated with 1Malaysia Development Bhd. Following US prosecutors alleging that at least US$ 3.5 billion has been misappropriated, 1MBD’s board has said that its 2013 and 2014 audited financial statements should not be relied on; at the same time, Deloitte, its auditors, resigned. The fund is under investigation in several countries, including Luxembourg, Singapore, Switzerland and US, for alleged corruption and money laundering. For Dubai residents and 1MBD stakeholders, it is going to be a Long Hot Summer!

With developers continuing to scale back on completion of launched and often pre-sold projects, the number of new homes handed over in Q2 totalled only 2.8k; industry expectations were that up to 40k residences would be handed over this year – in fact that number will struggle to reach 15k, with only 5k units delivered so far in 2016. Indeed, according to a Cavendish Maxwell report, 71% of units, that were expected to be handed over, have been delayed and a further 12% placed on hold. This tightening of the supply pipeline should negate any further price falls, as demand continues its upward trend.

Figures from the Dubai Land Department indicate that in H1, US$ 13.1 billion, from 21.8k transactions, were invested in the Dubai realty sector. Of that figure, five nationalities accounted for 57.4% of the total – UAE – US$ 3.3 billion, India – US$ 1.6 billion, Saudi Arabia – US$ 995k, UK – US$ 902k and Pakistan – US$ 728k.

Cavendish Maxwell have reported marginal Q2 declines in both Dubai apartment and villa prices, whilst over the past 12 months falls have been at 6% and 4% respectively. Meanwhile rents are showing marginal declines. The sector is still suffering from tight liquidity, consumer confidence and high deposit requirements from the financial institutions.

Core’s latest report sees a general softening in Dubai office rents, as stock levels continue to rise with a further 7.3 million sq ft, being built, adding to the current 90 million sq ft portfolio. In Q2, the property broker estimated that there were price falls of 10% in JLT, 6% along SZR and 3% in Business Bay, although Tecom and DIFC bucked the downward trend with rentals up 10% and 6% respectively.

Yet another Damac launch this week – this time phase 1 of The Beach at Navitas Hotel & Residences, comprising 3-bedroom apartments, with prices starting at US$ 341k. The 5-tower residential and hotel development will be located within the massive 55 million sq ft Akoya Oxygen project and will have all resort type facilities, including artificial beaches.

Al Shafar General Contracting will be the main contractor for the Vivanta by Taj hotel, to be built in JLT. Piling work has already started and completion date is set for Q4 2018.

The 304-key Aloft Dubai City Centre Deira, due to open in Q1 2018, will have an outdoor rooftop VOX Cinema. The property will also utilise Starwood’s keyless entry, allowing clients to use their smartphone for room access. The hotel will be Majid Al Futtaim’s 11^th in the country, whilst it will become Starwood’s 26^th, with a further 17 in the pipeline.

If Kleindienst, the firm behind Dubai’s The Heart of Europe development, have their way, the company will soon have the region’s first honeymoon destination. It is developing St Petersburg Island, a heart-shaped island, as a 5-star resort especially for newly-weds.

According to the Dubai Statistic Centre, Dubai’s permanent 2015 population was 2.4 million, with this figure boosted by the daily influx of 1.1 million souls, who live in other emirates but work in Dubai.

An agreement between the World Economic Forum, the UAE government and the Dubai Future Foundation will see the 2-day Shaping the Future annual meeting taking place in the emirate in November. The gathering will build on the work of the Global Future Councils.

The Al Naboodah Construction Group is expecting revenue to climb 75% this year, to US$ 954 million, as new management aims to better utilise related company links with its offshoots, including Arcon ready-mix concrete business, National Plant and Equipment and Trans Gulf (MEP).

Four-year old Careem, the local online taxi booking service, plans to spend US$ 100 million on R&D over the next five years. The company, with three million registered users, has already added 50 engineers in Pakistan and will open further centres in Egypt and Germany.

The 2016 Skytrax World Airline Awards saw Emirates voted the best airline in the world, as well as scooping the world’s best inflight entertainment and best regional airline.

Dnata continues on its acquisition trail – this time it has bought a majority shareholding in the UK’s Air Dispatch, with no monetary details available. This subsidiary of Chapman Freeborn Group provides loading services to airports in Prague and Warsaw and has Cathay Pacific, Qantas and Qatar Airways among its client base.

Although ME carriers posted an 11.8% jump in May air passenger numbers, compared to 4.5% the previous year, capacity increased by more – 15.6% (compared to the global average of 5.5%). IATA estimate that 2016 profits for the region’s airlines will rise by 14.2% to US$ 1.6 billion whilst the global increase will be lower at 8.5% to US$ 39.4 billion. (Some airlines must be making losses if Emirates, US$ 2.27 billion, and Qatar Airways Group – US$ 824 million – made such recent impressive profits).

According to Al Ansari Exchange, UAE expats remitted US$ 1.4 billion to their home countries over the last week of the holy month of Ramadan – 20% higher than last year, and three times the daily average. In 2015, the UAE Central Bank estimated that a sum of US$ 23.9 billion was remitted.

Although the June Emirates NBD Economy Tracker Index is marginally up to 54.6, it is still below the 3-year trend. However there were welcome signs of improvement in two main sectors – retail at 58.2 and tourism at 54.1; even the maligned construction segment had a positive reading of 51.5. Despite these rays of sunshine, there was no improvement in employment numbers, in contrast to the past four-year upward trend.

The June Emirates NBD UAE Purchasing Managers’ Index posted a monthly fall from 54.0 to 53.3 that is lower than the 3-year 56.3 average. One contributing factor to the sluggish figures could be attributable to the start of the holy month of Ramadan. However, non-oil private trade continued to improve, as higher output and new orders shored up a marginal improvement in the sector.

UAE’s Q1 direct non-oil trade, at US$ 73.4 billion, was slightly down on the same period in 2015; 40.2% (or US$ 29.5 billion) of the total emanated from Asia, Australia and the Pacific, whilst Saudi Arabia was the leading regional partner. Imports – at US$ 45.3 billion – comprised 61.6% of total trade, with reexports, at US$ 15.4 billion, and exports of US$ 12.7 billion making up the balance. Whilst the country’s trade momentum has been somewhat subdued, the slowdown in global trade is reflected in these figures. (Credit Suisse has predicted a 2.9% growth this year for the country’s non-oil economy, followed by 3.7% in 2017).

With its US$ 500 million Tier 1 Sukuk, Noor Bank’s listing became Nasdaq Dubai’s 11^th of the year and brought the total value of Shariah bonds on the exchange to US$ 44.6 billion.

The DFM opened on Sunday at 3371 and regained all the previous week’s losses and more, rising 3.0% to close the week on 3472 by Thursday (14 July 2016). Volumes, on the last day of the trading, were at 530 million shares, valued at US$ 187 million, changing hands, (cf 289 million shares for US$ 116 million, the previous Tuesday). Bellwether stock, Emaar Properties, surged US$ 0.11 to US$ 1.83, whilst Arabtec also moved north by US$ 0.02 to US$ 0.41.

Brent crude recovered somewhat and closed the week US$ 0.97 up at US$ 47.37 – whilst gold headed the other direction – down US$ 30 to US$ 1,332 by the Thursday (14 July 2016) close. (Iran’s oil exports at 2.6 million bpd have almost reached pre-sanction levels).

It came as no surprise to see Which? reporting that several UK banks have been charging customers several times the fees, compared to payday lenders. It seems that for borrowing US$ 130 for 28 days, customers of HSBC, Lloyds, RBS and TSB could be charged between US$ 104 and US$ 117 – four times higher than the maximum charged by a payday loan institution.

It seems that the seven bidders to acquire Tata Steel’s UK operations will now face serious international competition, as the Indian conglomerate has decided to “look at alternative and more sustainable portfolio solutions for the European business”. At least three major players – China’s Hebei Iron & Steel, India’s JSW Steel and ThyssenKrupp AG – could be interested in JV agreements with Tata Steel. There could be several sticking points in relation to the inclusion of its UK business, employing 15k, including resolution of the US$ 950 million British Steel pension fund liability and government assistance with any bailout.

Boeing could lose out on a potential US$ 25 billion order, with the House of Representatives passing a motion to block US aircraft sales to Iran. Any ban would have to be approved by the Senate. In January, Airbus won an Iranair order for 118 units, with Boeing later reaching a similar preliminary agreement.

Mitsubishi Aircraft Corp’s attempt to break the Embraer and Bombardier duopoly in the regional jet sector received another boost with a 20-aircraft order for its 92-seat MRJ90 from leasing company Rockton; this comes after a similar order earlier in the year from Aerolease Aviation LLC.

Meanwhile, Airbus has announced that it will cut the delivery of its A380s form its current annual level of 27 to 12 per annum as from 2018 – a sign of disappointing sales and a shorter than expected life span?

Pokemon’s first foray into mobile gaming hit the jackpot as GO’s runaway triumph saw the company’s shares jump 86%, to gain US$ 17.0 billion in just two days of trading, following its 06 July launch. Since the app, that has been released only in the US Australia and New Zealand to date, is free, Pokemon investors are unlikely to reap the dividends that the game’s success should warrant.

After last week’s Amazon announcement that it was creating 1k jobs, the UK received another fillip on Monday with news of a further 2k new jobs, as a result of a government agreement with Boeing. The deal involves expanding the US planemaker’s UK research operations and the purchase of 9 Boeing P8 maritime patrol aircraft.

Saudi Arabia’s Kingdom Holding has lost US$ 40 million because of the recent fall in sterling. The company agreed to trade its US$ 3.2 billion stake in FRHI Holdings – owner of the Raffles and Fairmont brands – for a 5.8% share in the French hotel group, Accor, US$ 339 million cash and other assets, including a stake in California’s Claremont Hotel and increasing its stake in London’s Savoy to 58.8%.

Three major elections were settled this week. Following his success, Prime Minister Shinzo Abe, Japan has slashed two major forecasts – growth from its January estimate of 1.7% to 0.9% and inflation from 1.2 to 0.4%. With the three arrows of Abenomics – monetary, fiscal and structural – continuing to miss their target, it is inevitable that a further stimulus package (up to US$ 200 billion) will soon be implemented.

The markets initially reacted favourably to news that the incumbent Australian Prime Minister, Malcolm Turnbull, scraped home, a week after the actual election. However, the Conservative leader will face many problems including the distinct possibility of a credit rating cut of the country’s coveted AAA status, declining consumer confidence and a ballooning trade deficit.

Theresa May became the UK’s Second ever Prime Minister and the 13^th in the Queen’s 64-year reign. Her first job appeared to be the axing of the Chancellor George Osborne to be replaced by Philip Hammond. The markets seemed to take the ministerial changes in their stride, with Thursday’s closing of sterling at 1.32 to the US$, FTSE 100 at 6662 and FTSE 250 at 16775.

Following May’s blip, when only 11k new jobs were created, normality returned to the US economy with June figures coming in at a healthy 287k. The jobless rate – measured by the number of unemployed actually looking for work – rose 2 notches to 4.9%, whilst the monthly wage growth was a disappointing 0.1% (2.6% year on year). If there is further encouraging economic data in the coming weeks, a Fed rate hike could be on the cards for September.

Now that a revision has been made to the level of its capital assets, brought about by the number of aircraft imported by leasing companies and other reclassifications, Ireland has amended last year’s impressive 7.8% growth to a spectacular 26.3%. The country’s economy has been bolstered by the fact that it is the home of many overseas companies, redomiciling there for favourable tax reasons.

The IMF has revised forecasts for the Italian economy in the wake of the Brexit vote – to under 1% this year (from 1.1%) and 1% in 2017 – down from 1.25%. Other analysts indicate even lower growth for the Eurozone’s third biggest economy. In the unlikely event that the country fully implemented all recent reforms, it would probably only reach its 2008 peak after a further decade; this compares to other eurozone countries that would be 25% higher by 2025. Italy’s cause will not be helped by high unemployment level, bank debts totalling US$ 398 billion and a rising public debt, currently at 132.9% of GDP – with only Greece in a worse state.

The EU has been beset with internal problems largely of their own making – structural weaknesses, high unemployment and soaring debt levels. Nevertheless the EU has been looking for some excuse to explain its miserable economic performance over the past few months and has been handed one on a plate – the UK Brexit.

Now this is one of the main factors behind the IMF’s decision to cut its 2017 growth forecast for the bloc from 1.7% to 1.4%, with 2016 marginally down to 1.6%. Others include political and economic uncertainty, market volatility and falling investor confidence. (The IMF has a past record of consistently changing forecasts downwards on a regular basis).

A bigger worry to the EU has to be the state of its banking system; for example, Italy may need external assistance as its financial institutions are awash with bad loans. However, the IMF’s main concern is Deutsche Bank which it considers the biggest single risk to the global financial system of the world’s top 29 banks. If that were to suffer, then expect carnage in the markets.

A US Congressional report seems to confirm what many already know – big banks have too much sway with governments. It seems that although HSBC was accused, in 2012, of money laundering for drug cartels – and subsequently paid US$ 1.9 billion in settlement – it never faced criminal charges nor saw any of its top officials prosecuted. The report alleges that the UK government “influenced” the outcome and “hampered” the probe with Chancellor George Osborne “intervened in the HSBC matter by sending a letter to Federal Reserve Chairman Ben Bernanke… to express the UK’s concerns regarding US enforcement actions against British banks”.

Although not the only entity, Goldman Sachs has a history of apparent collaboration with global governments and institutions. In 2009, it is reported that the bank received US$ 20 billion in bailouts, payments and backstops under the Obama administration – that year it paid out US$ 16.2 billion in bonuses. Interestingly, the likes of Robert Rubin (Treasury Secretary in the Clinton administration), Henry Paulson (Treasury Secretary – Obama) and Mark Patterson (Chief of Staff Treasury) were three of many who had previously held important positions In Goldman Sachs – as Co Chairman, CEO and lobbyist respectively.

Governor of the Bank of England, Mark Carney, spent 13 years with the bank in various countries. President of the ECB, Mario Draghi, is not only a member of the lobbyist Group of Thirty but also worked for Goldman Sachs from 2002 – 2005. Even Prime Minister, Malcolm Turnbull, was MD Australia and partner in the bank for four years to 2001.

The latest episode sees the former head of the EC, Portugal’s Jose Manuel Barroso, taking up a job advising the US bank on the consequences of Brexit – this comes 20 months after he stepped down from his presidency. There is something called conflict of interest or is it that some of out politicians, bureaucrats, fat cats and financiers are benefitting, at our expense, Living In The Gangsta’s Paradise?