Lebanese ministries told to wait to grant approval for subsidized imports

Lebanese ministries told to wait to grant approval for subsidized imports
A man counts U.S. dollar banknotes next to Lebanese pounds at a currency exchange shop in Beirut, Lebanon April 24, 2020. (REUTERS)
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Updated 08 May 2021

Lebanese ministries told to wait to grant approval for subsidized imports

Lebanese ministries told to wait to grant approval for subsidized imports
  • Finance Ministry to reduce number of subsidized goods from 80 to 30, source tells Arab News
  • Stores report declining sales as food prices surge

BEIRUT: The Banque du Liban has informed the Economy Ministry and other concerned ministries of the need to wait to grant approval for subsidized imports.
The move by Lebanon’s central bank comes as the caretaker government has been unable to secure a social safety net by agreeing to issue ration cards for the poorest families.
Meanwhile, there are no solutions to the problems obstructing the formation of a government to rescue the country from its economic crisis.
Prices of food such as beef and chicken have risen steeply, shocking supermarket customers. Employees at these stores say sales have declined due to people’s inability to pay these higher prices.
A source in the Finance Ministry told Arab News that the state supports “about 80 commodities,” including “wheat, fuel and medicines,” and that the ministry is planning to reduce this number to 30.
Subsidies have been removed from medical devices and supplies. The Medical Equipment and Devices Importers Syndicate said: “This means that the prices of goods (in this sector) will significantly rise.”
Subsidies on over-the-counter drugs are likely to be permanently lifted, but there are no plans to remove subsidies on medicines for incurable diseases.
Monthly subsidies do not exceed $500 million, but the scarcity of financial resources and the government’s inability to undertake reforms has made covering this cost difficult.


Dubai government agency first to approve job titles for remote work

Dubai government agency first to approve job titles for remote work
Updated 17 min 44 sec ago

Dubai government agency first to approve job titles for remote work

Dubai government agency first to approve job titles for remote work
  • Remote work can now be done under normal circumstances, the department said

DUBAI: Dubai Municipality has become the first government agency in the UAE to approve job titles for remote work, state news agency WAM has reported.
Remote work can now be done under normal circumstances, the department said, parallel to its other work setups such as its shifting system.
The move comes as the COVID-19 pandemic has made private, and even public, workplaces rethink ways to continue their operations despite the crisis.
Workplace innovation is not new to Dubai Municipality, as it pioneered flexible work systems for government departments in the UAE in 2007.
The pandemic has also made the municipality accelerate its smart transformation, to make the remote work system effective.


Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage

Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage
Updated 39 min 59 sec ago

Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage

Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage
  • Tuesday’s expansion is in addition to the company’s previously announced plan to invest $1.4 billion in 2021 alone to expand its manufacturing capacity

SINGAPORE: Chipmaker GlobalFoundries said on Tuesday it will spend $6 billion to expand capacity at its factories in Singapore, Germany and the United States amid a chip shortage that is hurting automakers and electronics firms globally.
The US-based company, owned by Abu Dhabi’s state-owned fund Mubadala, said it will invest more than $4 billion in Singapore, and $1 billion each in the others over the next two years. The unlisted company’s Singapore operations contribute about a third of its revenue.
“I think the next five to eight years, we’re going to be chasing supply not demand as an industry,” GlobalFoundries CEO Thomas Caulfield told a media briefing. He added that the company was prioritising automotive customers.
Tuesday’s expansion is in addition to the company’s previously announced plan to invest $1.4 billion in 2021 alone to expand its manufacturing capacity.
The chip shortage, which began in earnest in late December, was caused in part by automakers miscalculating demand for semiconductors in the pandemic. It was aggravated by electronics manufacturers placing more chip orders as work-from-home practices fueled a surge in sales of computers and other devices.
Large chipmakers including Intel Corp. have warned that the shortage will last well into next year. Intel announced in March a $20 billion plan to expand its advanced chip making capacity, while Taiwan’s TSMC said in April it will invest $100 billion over the next three years.
As well, governments, including those of the United States and Japan, have intervened to urge faster supplies. Earlier this month, the United States approved $54 billion in funds to increase US production and research into semiconductors and telecom equipment.
Caulfield said funding for GlobalFoundries’ expansion plan included investments from governments and pre-payments from customers.
The $4 billion investment in Singapore is the first of a phased expansion program planned by the company for the next five to 10 years, the CEO said. He did not specify a total amount.
The new Singapore fab will add capacity of 450,000 wafers per year, taking the campus’s total to 1.5 million, and the company expects to begin production in early 2023. Most of the added production will come online by end 2023.
The factory will make chips for cars and 5G technology, with long-term customer agreements already in place. It will add about 1,000 jobs in Singapore.


Sudan to abolish official customs dollar exchange rate

Sudan to abolish official customs dollar exchange rate
Updated 44 min 14 sec ago

Sudan to abolish official customs dollar exchange rate

Sudan to abolish official customs dollar exchange rate
  • The customs dollar exchange rate has been problematic for importers historically as it has valued the local currency at a higher rate

RIYADH: Sudan has taken the decision to abolish the official customs dollar exchange rate, Asharq Business reported, citing unnamed sources.
Sudan’s Finance Minister Jibril Ibrahim earlier pledged that the government was committed to canceling the so-called customs exchange rate used to determine import duties. It comes amid ongoing fiscal reforms that have been encouraged by the International Monetary Fund and other donors.
The customs dollar exchange rate has been problematic for importers historically as it has valued the local currency at a higher rate than reflected by the black market.
Ibrahim said the government would press ahead with its liberalization program until the country’s economy recovered from previous distortions.
He also said that the subsidy for wheat, cooking gas and fuel oil that is used in the production of electricity will not be canceled this year.
Devaluing the currency is one of a number of economic reforms that Sudan hopes will help it emerge from an enduring economic crisis.

 


Abu Dhabi creates tourism company to promote the emirate

Abu Dhabi creates tourism company to promote the emirate
Updated 51 min 2 sec ago

Abu Dhabi creates tourism company to promote the emirate

Abu Dhabi creates tourism company to promote the emirate
  • Tourism 365 will support ADNEC’s broader rule to position Abu Dhabi as a key tourist destination in the region

DUBAI: The Abu Dhabi National Exhibitions Company (ADNEC) has launched a new company to develop the UAE capital’s tourism sector, state news agency WAM has reported.
Tourism 365 will support ADNEC’s broader rule to position Abu Dhabi as a key tourist destination in the region.
It will work with big industry players in Abu Dhabi and the UAE’s tourism scene, including the emirate’s Department of Culture and Tourism, as well as private firms locally and abroad.
The new company aims to increase leisure visitors in the emirate, and ultimately enhance guest experiences.
While Dubai has long been the UAE's dominant tourism market, other emirates within the country are raising their profile and positioning themselves in slightly different segments. Ras Al Khaimah, the UAE's northernmost emirate is also heavily investing in the sector and targeting outdoor adventure-seekers while Abu Dhabi has in the recent past focused on its cultural offering.
“Over the coming months, Tourism 365 will collaborate closely with other tourism-focused entities, helping to collectively grow the future of the tourism sector,” its executive director, Roula Jouny, said.
“Our subsidiaries will bolster the wider tourism offerings of not just Abu Dhabi, but the UAE as a whole, increasing visitor numbers and promoting the nation’s tourism assets across the globe,” she added.
It comes as the UAE gradually eases travel restrictions for both incoming and outgoing travelers


Lebanon raises price of bread amid crippling economic crisis

Lebanon raises price of bread amid crippling economic crisis
Updated 34 min 27 sec ago

Lebanon raises price of bread amid crippling economic crisis

Lebanon raises price of bread amid crippling economic crisis
  • Lebanon is grappling with the worst economic and financial crisis in its modern history

BEIRUT: Lebanon’s economy ministry on Tuesday raised the price of subsidized bread for the fifth time in a year amid the tiny country’s worsening economic and financial crisis.
The ministry said the reason behind the latest increase is that the central bank has ended sugar subsidies, which adds to the cost of bread production. 
Lebanon is grappling with the worst economic and financial crisis in its modern history — one that the World Bank has said is likely to rank as one of the worst the world has seen in the past 150 years.
The World Bank said in a report this month that Lebanon’s gross domestic product is projected to contract 9.5 percent in 2021, after shrinking by 20.3 percent in 2020 and 6.7 percent the year before.
Lebanon’s currency has lost 90 percent of its value, breaking a record low earlier this month of 15,500 Lebanese pounds to the dollar on the black market. The official exchange rate remains 1,507 pounds to the dollar.
The central bank has been cutting back on subsidies as foreign currency reserves have dropped from $30 billion at the start of the crisis in October 2019, to nearly $15 billion at the present time.
Most Lebanese have seen their purchase power drop and more than half the population now lives below the poverty line. There are severe shortages in gasoline, medicines and other vital products. Electricity cuts last for much of the day.
The government in June last year raised the price of flatbread, a staple in Lebanon, by more than 30 percent — for the first time in a decade. It has since raised the price three times before Tuesday.
The Ministry of Economy says 910 grams (2 pounds) of bread will be sold for 3,250 pounds. It used to be sold for 2,750 pounds before the latest increase.