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

VOL 15, Issue 01 January 2013

From the Managing Partner’s Desk

We all “walkedon the edge of the world” while the US teetered on the brink of its financial cliff. There is little doubt that the rest of the world does get impacted by what happens in the USbut a deal has been struck in the final moments, as it was when sovereigndefault was looming a short while ago. The deal, though, seems to have been a veering away from one cliff but towards another in a few weeks time So it is difficult to assess the extent of its effect elsewhere. Having said that though, there are some very promising signs from around the globe – India ‘sindustrial output “soaring”; UK employment rising; closer to home we have thecompletion of Khalifa Port, Dubai trade hitting historic highs, the announcements of infrastructure and housing expenditure in Abu Dhabi, theSheikh Mohammed bin Rashed City or “Dubai 3.0” and the Mohammed bin Rashid SMEFund. This latter one is very welcome as, with most economies, the SME sector is very often a backbone but one that usually finds difficulty obtainingfinance. A roll out to non-national SMEs would also be a welcome addition given the high cost of financing that goes with the perceived risk of the SME.

In thisedition we are very happy to have interviewed Dr. Jamil Ahmed, Managing Director of Prime Health Care Group LLC.

We continue with the IFRS updates – this issue features a new standard,IFRS 12: Disclosure of Interest in Other Entities that is effective for annualperiods beginning on or after 1 January 2013 and an update providing an overview on the IFRS for SMEs. We also have anupdate relating to the new regulations issued by the Securities and Commodities Authority of the UAE, governing foreign and domestic mutual funds.

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

Finally, a very happy and prosperous New Year to you all.

GRAHAM MARTINS