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

VOL 15, Issue 02 April 2013

From the Managing Partner - U.A.E.

“Shams”, the Arabic word for sun. An appropriate name for the UAE’s AED 2 Billion solar power plant, Shams 1, inaugurated last month. Everyone recognises that hydrocarbon fuel cannot last forever and, indeed, that the emissions therefrom are harmful to the environment. So the development of a concentrated solar power plant can be seen as a first step by the UAE Government in providing a secure, sustainable and environmentally friendly source of power for the country. Whilst the 100 megawatt plant is capable of providing power to only 20,000 homes, the fact that it is Shams 1 would indicate that there could be more to come. What is equally important is the support services and products that will be required around the continued operation of the project and the development of human capital that has arisen from its implementation, all of which will go towards spurring growth in such an important sector of the world economy.

The other report that caught my eye was that of a “Happiness Index” and the UAE being ranked 17 and a conference being held in Ajman ahead of International Happiness Day. A very difficult thing to measure but I understand is based on perceived levels of corruption, life expectancy, a sense of community or support, freedom of choice, etc. A country’s wealth is not built upon GDP per capita alone but also upon these “softer” items that presumably promote productivity. Happiness of course can be relative, making it all the harder to rank but could this become a significant contributor to a country’s overall ranking?

We are very pleased to feature an interview with Mr. Ramesh Ramakrishnan, Chairman, Transworld Group of Companies in this issue.

This issue also features a new standard, IFRS 13: Fair Value Measurement that is effective prospectively, for annual periods beginning on or after 1 January 2013. We also have updates relating to the proposed real estate investor protection law – Tanweer and on the Sultanate of Oman’s budget for 2013.

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