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

VOL 16, Issue 4 October 2014

From the Managing Partner - U.A.E.

China injects $81bn, continuing mixed messages from US data, “France is sick” and generally muted news from the EU indicate that the world still has a way to go to get on an even keel and drive forward with continuing growth. On the other hand numbers coming out of the UAE seem very positive, be it economic growth, bank credit, inflation or visitor numbers. No doubt these are being helped to a degree by unrest in other parts of the region, but we must not forget that the UAE is not isolated from the international economies. So I think companies are still proceeding with caution but grasp every opportunity that comes their way. And quite rightly so. The recent “No” vote in Scotland means that the substantial amount of uncertainty that the prospect of Scottish independence generated has been dampened down. Hopefully this will help with the outlook for the EU. No doubt further powers will be devolved to the Scottish parliament, which could well give a spur to growth as hitherto un-thought of opportunities may emerge.

Further to a previous editorial, the more widely reported flattening of the property market must be welcome for many. Plenty of areas seem to be at the top of their price bands which could impact demand in other previously less familiar areas of Dubai.

There was a recent article referring to the announcement of the creation of a secondary market in private company shares which, I believe, refers to private joint stock companies. This could be a welcome development providing much sought after liquidity for such shares, even if it is on a matched bargains basis. I understand that it will be ESCA regulated but as yet I have not seen the regulations.

Mr. Gautam Shashittal, Chief Executive Officer, DMCC has kindly consented to be interviewed in this issue which also features an article on the importance of business plans to the success of business operations plus our usual updates.

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