A Quarterly Newsletter from UAE and Oman Offices

VOL 12, Issue 1 January 2010

From the Managing Partner’s Desk

I am writing at a time when the world seems to be in the throes of uncertainty with regard to its view about the UAE generally, and Dubai in particular, as a result of “doomsayers” reporting with what appears to be a degree of “schadenfreude” on the announcement of Dubai World’s intended debt restructuring and the Dubai Government stating that it has not guaranteed Dubai World’s debts. All around the world there are plenty of very sizeable companies that have restructured or filed for protection in the last fifteen months with substantially greater debt than the apparent $26 billion that Dubai World is now referring to but without the accompanying hue and cry. Transparency and timing are, I think, aspects that all of us are coming to terms with, realising that these promote stability rather than volatility; trust rather than suspicion; confidence rather than uncertainty. Adequate due diligence is also not to be ignored.

The UAE (and we should talk UAE, not individual states) has ample financial depth – the Central Bank’s provision of liquidity facilities to local and foreign banks combined with the take-up of another $5 billion bond by National Bank of Abu Dhabi and Al Hilal Bank and the repayment of Nakheel’s Sukuk and the more recent Dubai World support package of $10 billion from the Abu Dhabi Government demonstrate this all too well. Again, the small size in relation to financial packages in other countries lends credence to the view that the outcry appears to be overly pessimistic.

In this edition we have article on Turning around failing Organisations, lessons from the BBC and the New York Police written by Patrick McHale of PKF UK LLP.

We are privileged to have had the opportunity to interview Saadi Rais, Partner of Rais Hassan Saadi Group, which is appearing in this edition. We also have our usual updates from Oman and our Offshore and Free Zone team, in this edition.

Please fee free to write to update@pkfuae.com if you would like to express an opinion on any matter inside.

GRAHAM MARTINS