Dubai eyes timeshare and trade to boost growth and help small businesses

A man drives a water taxi, known as an "Abra" along the creek in old Dubai. The emirate announced new plans to drum up business in the emirate, help retailers and boost trade.
Updated 14 April 2018

Dubai eyes timeshare and trade to boost growth and help small businesses

  • Timeshare mulled to boost visitor numbers
  • Dubai also targets under-pressure retail sector

Dubai plans to lower costs for local retailers, develop a local time-share holiday home market, and further stimulate its SME sector, as part of a raft of measures to stimulate the emirate’s economy.

Dubai Ruler Sheikh Mohammed bin Rashid Al-Maktoum discussed the new measures with a number of leading government officials, the Dubai Media office said on Saturday.

“Dubai has established a clear and well-established economic policy which in turn has strengthened its ability to absorb rapid changes in an unstable global economy in order to achieve sustainable economic growth and enhance its competitiveness at all levels,” Sheikh Mohammed said in a statement.

The emirate’s Department of Economic Development has introduced an initiative to reduce operational costs within the retail sector, in a bid to increase investment. Details of the initiative were not disclosed.

The time sharing initiative, one of a series introduced by Dubai’s Department of Tourism and Commerce Marketing, is intended to promote family tourism via a market for “high-quality” time share holiday homes. The department is targeting between 500-1000 of such holiday units, in order to draw more family tourists and get them to stay longer.

Other initiatives mooted by the DTCM include a move to collect government fees from 3-4 star hotels on a semi-annual rather than monthly basis, in a bid to aid liquidity in the sector.

Dubai’s Department of Finance meanwhile is coordinating with government authorities, providing them with incentives to allocate 20 percent of tenders to SMEs in a bid to boost the sector and diversify the emirate’s overall economy.

Other initiatives discussed by officials include efforts to attract added numbers of tech entrepreneurs to the emirate, moves to stimulate its Islamic finance capacity, and plans to develop a servicing hub for yachts and cruise ships.

Boeing abandons 2019 outlook after 737 MAX aircraft groundings

Updated 24 April 2019

Boeing abandons 2019 outlook after 737 MAX aircraft groundings

  • Boeing’s core earnings fell to $1.99 billion, or $3.16 per share
  • The planemaker said it faced $1 billion in increased costs in the first-quarter ended March 31

Boeing missed sharply-lowered Wall Street estimates for revenue and cashflow in the first quarter and suspended its 2019 outlook, as the world’s largest planemaker continued to suffer from the grounding of its 737 MAX jets.

The company said it faced $1 billion in increased costs in the first-quarter ended March 31, related to the 737 aircraft as it halted deliveries of the grounded planes to customers around the globe.

The company also said it was halting share buybacks.

The fallout of a second deadly crash within months in March has seen Boeing cut production of the jets to 42 aircraft per month, down from 52, and its operating cash flow in the first quarter was around $350 million lower than a year earlier.

Boeing is also spending on developing a fix for an anti-stall software known by the acronym MCAS, which has been a common link in the separate chains of events leading to the two crashes within a span of five months.

The company said it would be issuing a new forecast in the future when it has more clarity around the issues surrounding the 737 MAX.

First-quarter operating cash flow declined to $2.79 billion, from $3.14 billion, missing the Wall Street’s average estimate of $2.82 billion.

Revenue fell 2 percent to $22.92 billion, below analysts’ average estimate of $22.98 billion.

Excluding certain items, Boeing said its core earnings fell to $3.16 per share, in the quarter from $3.64 per share, a year earlier. Analysts had expected Boeing to earn $3.16 per share.