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

VOL 18, Issue 1 January 2016

From the Managing Partner - U.A.E.

Firstly, in this January edition, and as usual, I would like to wish all our clients and contacts Season’s Greetings and a very Happy and Prosperous New Year. This comes at a time when sentiment may be cautious to say the least. But I believe that with careful management we could all have a good year.

“A loose tightening” – an oxymoronic phrase to describe the 0.25% Fed rate hike accompanied by the “gradual tightening” of the market, presumably to reflect an intended more frequent but small increases in Fed rates in the future. The immediate impact seemed to be a jump in equity markets, when you might expect the reverse. This probably occurred because a rate increase was already priced in but what was not could have been the “gradual tightening” reference. Certainly the US Dollar also benefitted. A couple of days later, though, prices seem to have drifted back down again. Locally, amidst an already illiquid lending market, this is likely to make it even harder for companies to access bank lending as lower oil prices continue to soak up liquidity at the banks.

We feature a guest article from PKF Jordan which elucidates how the HR function can optimize organizational performance. Updates relating to Oman and the offshore world are also featured in this issue.

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

GRAHAM MARTINS