MOE/DED

The UAE Ministry of Economy (MoE) and the Dubai Department of Economic Development (DED) have signed a Memorandum of Understanding (MoU) requiring their cooperation in trade protection and the planning, development, and unification of procedures related to trade control. The MoU is intended to enhance commercial market regulation and create a competitive environment that both protects society and develops the national economy. The memorandum was signed at the ministry’s Dubai office by Mohammed Ahmed ibn Abdulaziz Alshihhi, undersecretary of the MoE; and Ali Ibrahim Mohammed, deputy director general for executive affairs, on behalf of Mohammed ibn Ali Al-Abbar, director general of the Dubai Department of Economic Development (DED). The ceremony was attended by Humaid Bin Butti Al-Muhairi, assistant undersecretary for companies and control affairs, Abdullah Ahmed Al Hussein, Director of the Control Department, and other key officials. “The importance of this MoU lies in its regulation, unification, and development of procedures governing the control of economic activities in Dubai and the establishments engaged in these activities. This agreement establishes an institutional framework consistent with UAE’s international obligations and Dubai’s own direction in developing its investment environment and the necessary laws and regulations,” said Alshihhi. Ali Ibrahim Mohammed, deputy director general for executive affairs, (DED), explained that the two parties share the same vision of serving the country’s economy and will coordinate efforts to harmonize their plans and goals.

Etihad

Etihad Airways continues to enjoy a record-breaking 2008 with its latest passenger figures for the first six months flying high with a 41 percent rise on the same period last year. The airline is well on track to achieve its target of carrying six million passengers by the end of the year. Highlights of the first half-year results show that the Abu Dhabi-based airline carried 2.8 million passengers during the first six months of 2008, compared to nearly two million for the same period in 2007. And Etihad also witnessed the busiest day in its four-year history on Friday, June 29, with a record-breaking 19,709 customers flown across the airline’s network at a seat factor of 85 percent. The airline achieved average seat factors of 73 percent across its network of 45 destinations between Jan. 1 and June 30. Year-on-year this represents an increase in seat factor of nine percentage points and comes as Etihad continues to expand its global flying program and add aircraft to a fleet that will grow from its current 37 to 45 by the end of 2008. In the second half of the year the airline will introduce non-stop flights from its Abu Dhabi base to five new destinations. James Hogan, Etihad Airways’ chief executive, said: “Etihad’s performance during the first six months of 2008 has been extremely strong against a well documented backdrop of higher fuel prices and economic slow-down in parts of Europe and the Americas.”

BP

Saudi Arabia posted one of the Middle East’s highest oil consumption growth rates during 2007, growing at nearly twice the regional average according to the recently released 2008 BP Statistical Review of World Energy. Saudi Arabia was the world’s largest oil producer in 2007, with output averaging 10.4 million b/d in 2007, equivalent to 12.6 percent of total global production. The country’s proved oil reserves of 264.2 billion barrels make up 21.3 percent of the world’s total and, at current production levels, would last 70 years. Middle East’s proven oil reserves stood at 755 billion barrels, or 61 percent of the world total, while global proved oil reserves amounted to 1.24 trillion barrels. Middle East oil production fell by 1.8 percent to 25.2 million b/d on the back of OPEC production cuts in late 2006 and early 2007. The decline was partially offset by a 7 percent increase in production from Iraq. The 350,000 drop in OPEC production was noticeable on the global oil production total, which fell by 0.2 percent, or 130,000 b/d, to 81.5 million b/d. “The rise in Saudi Arabian demand is very much in line with the worldwide trend we’re seeing of increasing demand from emerging markets,” said Mark Finley, general manager, Global Energy Markets & US Economics. “This year’s Statistical Review shows the world’s energy markets continue to deliver reliable energy supplies despite high and volatile energy prices, although continued weakness in oil supply and increasing emerging market demand also highlight the challenges that industry faces in maintaining secure energy supplies,” Finley explained in Riyadh at the start of a regional tour that will also take him to Kuwait, Oman, Qatar and the UAE.

STC

Saudi Telecommunications Company (STC) has received the Saudi Stock Companies Transparency Award. The award was recently presented to Saudi Telecom by BMG Financial Advisors for the company’s continuous and transparent communications with regional and international financial analysts, financial research companies and investors, both in and outside the Gulf. In consideration of its position as one of the biggest and most important companies in the Middle East, in October 2007 STC created a dedicated Investor Relations Unit to respond to the interest shown by investment companies and financial analysts around the world, with the objective of enhancing the transparency of communications between STC and global financial circles. The unit’s mission is to communicate the company’s strategic direction and financial performance, provide leading investors with information related to their investments, and respond to investors’ inquiries. The unit is also committed to providing local, regional and international financial analysts and investment portfolio managers with the quarterly and annual financial lists as soon as they are published, supported by analytical studies. These studies aim at presenting a fair evaluation of the company’s share price to financial analysts who are interested in publicizing STC’s corporate performance. The unit maintains a presence at regional and international events and participated at the 6th annual conference held by the HERMES Financial Group in Sharm Al-Shaikh. The unit was also one of 80 international participants at the annual Spring European and Middle East Large Cap Conference held by Calyon “Chevro” Bank in Paris, and the UBS Investor Relations Day held in Dubai in June.

Muchos

Jeddah Chamber of Commerce and Industry Chairman Saleh Al-Turki opened a new Muchos restaurant at King Abdul Aziz Street in north Jeddah on Tuesday night. Describing the new restaurant as a welcome addition, Al-Turki said the city was on a regular expansion curse and as such attracted visitors from elsewhere in the Kingdom and overseas. “We need more restaurants to meet the needs of visitors, as well as citizens and residents,” he said. “This is our second branch in Jeddah and have plans to open one in Riyadh next year, and then in Eastern Province, the UAE and Qatar,” Muchos CEO and President Awse M. Jastaniah said. “We offer authentic food from Latin America and intend to expand to become a global Saudi chain,” he added. The restaurant offers food from Mexico, Argentina, Chile, Brazil and other neighboring countries. An engineer by profession, Jastaniah, who studied in the United States and worked for four years as a mechanical engineer, ventured into the restaurant business in 2005 when he opened the first Muchos outlet on Tahlia Street. “Our studies and market research show that the city, which gets a growing number visitors, needs restaurants with authentic Latin American food. Our effort is to meet their requirement without compromising on quality and service,” Jastaniah said.