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

VOL 14, Issue 04 October 2012

From the Managing Partner - U.A.E.

A couple of issues ago I wrote of conflicting economic indicators at a macro level that would, in all likelihood cause business managers to be cautious in planning and to not be too keen over unnecessary exposure to risk.

I also see this at a more micro level – two major business houses announcing that they are actively in talks regarding the possibility of IPO next year but, on the other hand, I have seen a report stating that legal action is now being taken with respect to another group as agreement cannot be reached on a major debt restructuring.

This all comes at a time when Abu Dhabi’s credit rating has been re-affirmed at AA when the US is on watch! More contradictions indeed.

Together with many of our clients and, indeed, my colleagues in other firms, I am seeing a sustained “uptick” in business at a time the rest of the world seems to be continuing to be troubled.

Overall, therefore, the country is doing something right. Indeed, the very recent troubles in the region are likely to bring added impetus to the benefits felt from the “Arab Spring”.

We are pleased to interview Mrs. Simona Musso, who recently opened a restaurant on Reem Island in Abu Dhabi offering authentic Italian fare. We offer her our best wishes.

We continue with the IFRS updates – this issue features a new standard, IFRS 11 Joint Arrangements that is effective for annual periods beginning on or after 1 January 2013.

The issue also includes an update featuring some of the changes to the income-tax law of the UK which, potentially, could adversely affect individuals who own property and visit the UK frequently.

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

GRAHAM MARTINS