1 Dated: 10th January, 2010, time: 3.

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Introduction to UAE
The UAE consists of seven states, termed emirates, which are Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah and Fujairah. The capital and second largest city of the United Arab Emirates is Abu Dhabi. It is also the country's center of political, industrial, and cultural activities. The United Arab Emirates has the world's sixth largest oil reserves. and possesses one of the most developed economies in the Middle East. The United Arab Emirates is a founding member of the Cooperation Council for the Arab States of the Gulf, and a member state of the Arab League. It is also a member of the United Nations, Organisation of the Islamic Conference, and the World Trade OrganizationAlthough the United Arab Emirates is becoming less dependent on natural resources as a source of revenue, petroleum and natural gas exports still play an important role in the economy, especially in Abu Dhabi. A massive construction boom, an expanding manufacturing base, and a thriving services sector are helping the UAE diversify its economyAs a member of the Gulf Cooperation Council (GCC), the UAE participates in the wide range of GCC activities that focus on economic issues. These include regular consultations and development of common policies covering trade, investment, banking and finance, transportation, telecommunications, and other technical areas, including protection of intellectual property rights

United Arab Emirates profile

States under United Arab Emirates

Abu dhabi Dubai Sharjah Ajman Umm al-Qaiwain Ras al-Khaimah

2 Fujairah

Real GDP growth

The following is the Gross Domestic Product of each Emirate in the U.A.E. (shown in graph). All data is estimated from 2007. American dollar to Emirati Dirham is calculated with 3.673 DHs to 1 USD pegged exchange rate. Abu Dhabi - 110 billion American dollars or 404.03 billion Emirati Dirhams. Annual Growth rate: 12% Dubai - 54.315 billion American dollars or 199.5 billion Emirati Dirhams. Annual Growth rate: 19.2% Sharjah - 18.622 billion American dollars or 68.4 billion Emirati Dirhams. Annual Growth rate: 13.2% Ajman - 2.722 billion American dollars or 9.99 billion Emirati Dirhams. Annual Growth rate: 27% The three remaining Emirates (Umm al-Qaiwain, Ras al-Khaimah and Fujairah) contribute very little to the overall Gross Domestic Product of the U.A.E. and, therefore, their GDP is not calculated often. The difference between the GDP for the entire United Arab Emirates and the GDP of the four Emirates listed above is about 7 billion American dollars or 25.711 Emirati Dirhams.

Major industries
Aluminum Smelting Cement

4 Fish Processing Fish Meal Natural Gas Liquefaction Oil Production Steel Milling Japan South Korea Thailand India United States China India Germany Japan United Kingdom France Italy

Major exporters

Major importers

Main exports and imports

Debt outstanding
UAE has $184 billion debt outstanding in 2009

SPECIALIZED FINANCIAL INSTITUION

Banks Banking Equipment Bankers Training Institutes Brokerages Exchanges Financial Organizations Financial Services Housing Finance Insurance Investment Companies Foreign bank 28 banks 55 companies 4 companies 43 companies 24 companies 7 companies 6 companies 2 organizations 44 Banks 1 company 2 institutes

SUMMARY

Banking Equipment
OMA Emirates company
Sharjah-based company that markets banking automation equipment, custom-made banking software products, computer stationery, and credit card accessories; products: cash dispensers, vending machines, imprinters etc

Bankers Training Institutes

i.

Emirates Bank Group

Financial group with companies in banking, insurance, financial services, credit cards, investment banking, bankers' training, property investment and real estate services Organization set up to provide professional and quality training and educational programmes, studies, and services for the banking and financial sector and develop UAE human resources

ii.

Emirates Institute for Banking and Financial Studies

Brokerages
i. Century Financial Brokers LLC ii. Al Dhafra Financial Broker LLC
UAE's leading brokers of financial instruments; based in Dubai; products: foreign exchange trading, commodity futures, CFD stocks, Indian stocks & mutual funds, base metals & derivatives Providers of online stock trading services based in Abu Dhabi; division of the ABER Group; offers access to Dubai Financial Market (DFM), Abu Dhabi Securities Exchange(ADX) & the Dubai Gold & Commodities Exchange (DGCX)

iii.

Al Mal Capital

Diversified, multi-line investment bank, licensed & regulated by the Central Bank of the United Arab Emirates & headquartered in Dubai; offers investment products & services for institutions, banks & wealthy individuals

iv.

Amwal International Full-service brokerage firm located on Khaleefa Street, Abu Dhabi; offers
a full range of investment products & services, including trading on the Abu Dhabi Stock Market (ADSM), Dubai Financial Market (DFM) etc

v.

Dubai International Securities LLC vi. MAC Sharaf Securites

Brokerage house registered in both the Abu Dhabi & the Dubai financial securities markets; services include equity brokerage, mutual fund distribution, PMS, advisory & syndication of QIP / pre-IPO issues etc Stockbrokers with licenses on all three UAE markets -- the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX) & the

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Dubai International Financial Exchange (DIFX); located on Sheikh Zayed Road, Dubai

vii.

Orient Financial Brokers

Foreign exchange, commodities & money market brokerage firm based in Dubai; offers online foreign exchange, precious metals, commodities, treasuries, share & stock index CFDs (contracts for difference) services

Exchanges
i. Abu Dhabi Securities Exchange (ADX) Dubai Market iii. Dubai Exchange iv. Nasdaq Gold
Governmental entity set up to provide investors an opportunity to invest capital in the market for the benefit of the national economy

ii.

Financial Government entity set up to create a fair, efficient and transparent

marketplace that serves the interest of the national economy; provides a forum for the trading of securities

& Fully automated, screen-based online commodities exchange based in

Dubai; joint venture between the Dubai Metals and Commodities Centre (DMCC), Government of Dubai, Financial Technologies (India) Ltd, & Multi Commodity Exchange of India

Commodities

Dubai International stock exchange between western Europe and east Asia;
opened on 26 September 2005; offers trading in equities, derivatives, Dubai gold securities, Islamic securities, debt, funds, REITs, ETFs and structured products

(formerly DIFX)

v.

Borse Dubai

Holding company for Dubai Financial Market (DFM) & Dubai International Financial Exchange (DIFX); DFM operates as a secondary market for securities etc, while DIFX deals in equities, Sukuk, conventional bonds & structured products

vi.

Dubai

Mercantile First energy futures exchange in the Middle East; set up as a 50/50 joint
venture between the New York Mercantile Exchange (NYMEX) and a subsidiary of Dubai Holding but the equity stakes have now been more widely dispersed

Exchange (DME)

Financial Organizations
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Arab Monetary Fund

Establishment Member countries 1976
Member Countries (22) are: Jordan, United Arab Emirates, Bahrain, Tunisia, Algeria, Djibouti, Saudi Arabia, Sudan, Syria, Somalia, Iraq, Oman, Palestine, Qatar, Kuwait, Lebanon, Libya, Egypt, Morocco, Mauritania, Yemen, Comoros.

Objective

Regional Arab organization set up to correct disequilibria in the balance of payments of member states, strive for the removal of restrictions on current payments between member states, etc; based in Abu Dhabi

management location

Top management of the AMF consists of the Board of Governors (General Assembly), and the board of executive directors chaired by the Director General Chairman of the board Arab Monetary Fund Head Office is located in the city of Abu Dhabi, United Arab Emirates. The Fund is hosted by the government of UAE.

Arab trade financing program

establishment shareholders Paid up capital objective 1989 44 including Arab financial org.,regional monitory fund, central bank etc USD 500 million Specialized financial institution whose mission is to contribute to the development of Arab trade and to the increase of the competitive capabilities of Arab producers and exporters

Housing Finance
Amlak Finance
Finance company majority owned by Emaar, a property developer in Dubai; provides real estate finance for land purchase, construction, development of existing properties and purchase or construction of commercial properties; also provides auto finance

9 Private Housing Finance Scheme (PHFS)

Scheme by the Emirates Bank group that aims to support UAE nationals to have an appropriate residential property, by granting housing loans to establish, buy or refurbish residential properties without interest up to 25 years for Dubai nationals

Real Estate Bank

Bank that provides real estate credit to UAE nationals, companies & cooperative societies; based in Abu Dhabi, with offices in Dubai; offers loans for real estate projects, manages real estate, manages funds of the Sheikh Zayed Housing Programmed etc

Tamweel Home Finance

Housing finance company based in Dubai; has a variety of home finance options

Financial investment banks

Arab emirates investment bank

Establishment Authorized capital Paid up capital Directors and Management

February 1976 340.9 million 80.00 million Omar Abdulla Al Futtaim Butti Obaid Al Mulla - Chairman - Vice Chairman

Marwan Anthony Shehadeh - Director Chief Executive Officer Auditors Solicitors M/s. Afridi & Angell, Dubai objective AEI Bank's Investment Management Team has a proven track record and is ideally equipped to help its customers benefit from the potential of the world's major financial markets Khaled Sifri M/s. Ernst & Young, Dubai

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Licensed

Licensed by the Central Bank of the U.A.E. as an Investment Bank according to Article 113 of Union Law No.10

Performance of sectors

Industry Sector

Industry is a mega sector which contributes most in UAE GDP. Within its function the Ministry of Finance and Industry is accountable for supervising the organization of the Industry affairs, furthermore, to urge the revenues within the rules and principles of the provisions of the Federal Law No. 1 for 1979. The Ministry shall exercise its functions through the industrial development department, which runs as follows: Prepare studies and researches, and initiates the necessary policies and procedures to organize and develop the industrial activities, and the existing industries, and provide the necessary tools of success. Prepare and evaluate the pre-feasibility studies for the industrial projects, as well as the studies of expansion in the existing factories. Licensing and registration of the industrial projects in the state, and the issue of preliminary approvals to set up the projects, and the licenses for manufacturing production.

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11 Perform the industrial surveys in the state, and furnish information and data or relevancy, disseminate the industrial awareness by issues or Industrial Affairs newspapers, participate in holding of exhibitions, and convening of industrial seminars and conferences. Conferment of privileges for the industrial projects in accordance with the law, issue of price preference certificates, and rehabilitation of the national industrial establishments, according to the rules and conditions followed. co-ordinate and cooperate with the official entities responsible for the industrial development, and organize the communication and collaboration with the gulf, Arab and international organizations and institution

Main industries of UAE

Aluminum Smelting Cement Fish Processing Fish Meal Natural Gas Liquefaction Oil Production Steel Milling

Mega industry of UAE

The gas and oil industry is still the basic and most important of the UAE's industries. In the Emirate of Abu Dhabi, it is run and controlled by the Supreme Petroleum Council under the chairmanship of UAE President His Highness Sheikh Khalifa Bin Zayed AlNahyan, . Abu Dhabi National Oil Company (ADNOC), which was established in 1971, controls the gas and oil affairs in the Emirate. ADNOC is fully owned by the Government of Abu Dhabi, and is the parent company, or owner of all or majority of the shares, of 15 companies known as the "ADNOC Group of Companies". These companies are involved in oil and gas exploration and production, petrochemical industries, marine transportation, distribution of petroleum products, exploration and production services and facilities, and natural gas processing

EMIRATES INDUSTRIAL BANK

Goals and objective The Bank aims both to aid the establishment of new industries and consolidate and strengthen the existing ones

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12 shareholders

Government of United Arab Emirates Abu Dhabi Commercial Bank Abu Dhabi National Insurance Co. Meshreq Bank Emirates Bank International National Bank of Abu Dhabi National Bank of Dubai National Bank of Sharjah Middle East Bank Al Ain Ahlia Insurance Co. Oman Insurance Co. Dubai Insurance Co. Al Dhafra Insurance Co. Arab Emirates Investment Bank

51.0000% 8.6465% 8.2925% 8.2925% 7.4755% 4.1465% 4.1465% 2.5000% 2.5000% 1.0000% 1.0000% 0.5000% 0.2500% 0.2500%

Board of dirctors

H.E. Dr. Mohammed K. Bin Kharbash Chairman H.H. Sh. Ahmed Bin Zayed Al Nahyan Vice Chairman 8 members 10 members 6th Floor, Arab Monetary Fund Building Corniche Road, Abu Dhabi P.O. Box 2722, Abu Dhabi 20th Floor, ARBIFT Tower Baniyas Street, Dubai P.O. Box 5454, Dubai http://www.emiratesindustrialbank.net/

Management team Head office

Branch office

website

Performance of industrial sector

The UAE industrial sector includes food, beverages and tobacco, metals, chemicals, fertiliers, cement, and paper and packaging firms as well as industrial services manufacturers, among others.

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The overall industrial sector weathered the second half of 2008s economic slowdown well on the back of a strong export and re-exports market. However, 2009 remains a challenging year with the manufacturing climate expected to weaken. Heightening the concern is a financing and credit environment that is currently in turmoil. Increased competition and weakened domestic demand will limit manufacterers' ability to pass on costs to end consumers. In addition, it is increasingly difficult to obtain financing amid a tightened credit market which is limiting companies' plans for expansion and putting increased pressure on managing working capital. Whats' more, employment levels, inventories and manufacturers' order backlogs are also sinking

Agriculture sector

Agriculture sector contribute very little in UAE GDP.

Ministry of agriculture and fisheries assist the agricultural sector

Minister of Agriculture and Fisheries:

Saeed Mohammed Al Ragabani

Ministry's Responsibilities and Tasks

Ministry of Agriculture and Fisheries is aiming to achievement of agricultural development plans & programs, formulation of the agricultural policies and initiation of relevant legislations for the

Areas of responsibilities:
Creation of condusive environment for citizens to work in agricultural activities (Cropping, livestock & fishing) Cooperation with local government agents to spread vegetation and combat desertification and land degradation. Encourage Application Supply competent Establishment and support private of to sector pests marketing to contribute & of national to plant & on livestock programs an economical development & endeavors. strategies. framework basis. epidemics control

production and

Tighten control on quality and health safety measures of food and seed products in coordination with the other organizations management of research and institutions. studies centers and extension fields. applied

Cooperation and coordination with the Gulf Cooperation Council states with respect to the agricultural and environmental issues.

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Performance
Although highly arid, the United Arab Emirates has been able to develop a thriving agricultural industry. Despite rapid population growth, it is now self-sufficient in some vegetable crops throughout the year. Small-scale farming based upon exploitation of underground water resources began in desert oases and mountain valleys at least 5000 years ago, but the lack of rainfall made large scale agriculture impossible. Now, modern irrigation techniques and water from deep artesian aquifers and from desalination has made it possible for large areas to be cultivated. There are now more than 100,000 hectares of cultivated land, producing a range of crops, including salad vegetables, potatoes, fruit and fodder, as well as flowers, grown mainly for export to Europe. In traditional mountain farms, production of tropical fruits like papaya and citrus as well as tobacco continues. The Government supports agriculture through preparation of land for farms which are distributed free to citizens, and follows this up with a free agricultural extension service. Farmers are also offered a guaranteed price for produce and subsidized machinery and fertilizers

Financial service sector

Performance of insurance sector
The UAE insurance industry is projected to grow between 5% and 8% this year despite negative impact of the financial crisis on the industry The sector is expected to stabilize this year with the dampening of economic slowdown. Insurance premiums surged from Dh14.59 Billion in 2007 to Dh18.3 Billion last year (2008), resulting in overall industry growth of 25.42%. Property insurance premiums also posted growth of 31.1%, taking premium revenue from Dh11.9 Billion in 2007 to Dh15.6 billion in 2008. Domestic insurers total premiums for property and liability insurance stood at Dh14.5 Billion last year. Claims ratio (excluding re-insurance share) for property and liability insurance declined in 2008 to 57.6% against 62.2% in its previous year (2007)

Performance of banking sector

The UAE's banking sector has weathered the international financial crisis and now stands on solid ground, says Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research. 14

15 "The outlook for all the UAE's banks is very positive," he added. "Without government support the banks would not have weathered the crisis, especially during the difficult first phase. Today, we confirm that the banks have regained the full confidence of their clients. Their performance has improved and sufficient liquidity is available. All of this confirms that the UAE's economy is sound." He pointed out that crises in the banking sector were not new. "There have been crises, the latest of which was the international financial crisis. But undoubtedly we got through them by virtue of wise political leadership, which does not limit the support it gives to the state's institutions, including economic institutions and banks(30 nov)

Performance of stock exchange

due to global financial crisis and Dubai debt crisis ,there was a visible fall in stock exchange market .but now recovery has been seen in the stock exchange market. and every thing is going to be normal now.

Dubai financial crisis

Summary
Dubai world has taken loans from any institution for developing Dubai. it spent lots of money on real estate and now there are no enough buyers to buy property because of global crises. due to this company is not able to repay its loan installments. Since all the loans are guaranteed by Dubai government Dubai has requested his investors to extend his time limit .the total liabilities are almost 80 $ billion. it is not such a big amount to impact on economy but it has a great impact on banking and real estate sector.

Debt does matter eventually

What are the crisis

Dubai crisis called by economists a result of real estate bubble blast when on November 2009, Dubai proposed to delay payment of its debt installment which include Liabilities on DUBAI WORLD $59 billion Liabilities on NAKEEL $26 billion Total debt $80 billion 15

16 All the debts are guaranteed by Dubai government. Dubai World is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading and Nakheel, its property arm, which built The Palm Islands and The World developments

Reasons of crisis
Due to global financial crisis 2009, dubai real estate market experienced slowdown By early 2009,the situation had worsen with global financial crisis taking heavy toll of on the property value,construction and e,ployment. ducbai state is more debt,less eqity. As feburary 2009,dubai foreign debt was estimated approx. 90$billion.it contributes failure of key business of dubai.

Impacts of cisis
banks
There is meaningfull impact on banking across ASIA e.g: standard chartard bank,HSBC,singapor etc beacuase they are most exposed in thet region. Those banks who are providing financial assistance in project are seeing their fuure in danger. Their share prices are falling.

Currency market

Dubai debt fear continues to drive investors away from risk. So market is shapely slow.

Lay off
Due to major fall in construction business the labor is asked to go home.

Depreciation of dirham
Valuation of AED saw a drop.

Commodity market
The Dubai debt crisis seems to be hitting gold prices as investors are shifting their focus to the US dollar from yellow metal. During all major global credit problems, US dollar has been the safe bet -based bullion

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Central bank supporting

Central board has already discussed that its board has discussed pals to facilitate for supporting real estate lending in Dubai as well as rest of UAE. The United Arab Emirates Central Back announced that it would stand behind the foreign and domestic banks in Dubai and also offered additional money in a move to calm the regional markets .The Asian stock markets which had s great fall, rebounded back after the United Arab Emirates moved to contain the fallout from Dubais debt crisis.

Conclusion and findings

Dubai expects financial support from ABU DHABI because it is oil Rich County. And central bank of 80 $ billion. it is not such a big amount to impact on economy but it has a great impact on banking and real estate sector.

Retrieved from
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18 16. www.docstoc.com/docs/19420543/Dubai-crisis 17. http://www.news-relay.com/ 18. www.dailystar.com. 19. blog.mises.org/archives/011119.asp 20. www.youtube.com 21. www.telegraph.co.uk 22. www.expatexchange.com 23. www.araboo.com 24. musicandyou.com/news/uae-exchange-&-financial-services.html 25. musicandyou.com/news/uae-exchange-&-financial-services.html 26. www.arabianbusiness.com 27. www.uaeinteract.com 28. www.ameinfo.com 29. www.bi-me.com/

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