A Quarterly Newsletter from the UAE and Oman member firms of the PKF International Ltd.

VOL 13, Issue 2 April 2011

From the Managing Partner - U.A.E.

Regional unrest and environmental disaster have come at a time when economic recovery was starting to show some momentum, subject to some individual country woes. With the world so intimately linked from a financial perspective this has and will, in all likelihood in the short term, put a cautionary brake on recovery as investors and risk-takers sit back to consider the possible ramifications of recent events – will oil go up or go down; what will happen to stock prices in various countries; will there be a shortage of Japanese produced goods; how much and where will sovereign funds be injected; where could unrest happen next; where will development happen next.

Whilst the short term may have a degree of uncertainty, these events may well cause another boom in the region as latent and hitherto under-deployed wealth is brought to bear. The UAE in particular with its developed infrastructure and safe haven characteristics is likely to play a major role here as investors re-establish bases from which to develop opportunities that will no doubt arise in the near term.

Fixed assets are very often a major part of many balance sheets, but their physical verification, recording and control is very often not really considered until the auditor comes knocking at the door. Our Back-Office Services Director, H. Cooper, has written an article on this oft over-looked area of company operations and accounts and how he and his team have been assisting clients by getting fixed asset registers knocked into shape.

In this edition we are very pleased to have had the opportunity to interview Mr. Mohamed Abdul Ghaffar Hussein, Chairman of Hepworth PME LLC, Technopack and Kangaroo Plastics. We also have our usual free zone and offshore updates.

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

GRAHAM MARTINS