Tips for starting a restaurant in Dubai

Costs to consider when opening a restaurant

• Licence
• Rent
• Permissions
• Staff training
• Capital costs
• Staff visas
• Opening stock
• Collaterals
• Website
• Sponsor fees
• Accounting software
• Occupational health cards
• Equipment testing
• EPOS system
• Fire fighting test certificate
• Insurance
• Working capital
• Restaurant consultant
• Accountant

Dos

• If you have an area in mind for your food establishment, make sure that you do your research first by looking at footfall and demographics to ensure there is the target audience to service.

• Do prepare a business plan with full financial forecasts before committing any expenditure.

• Do ensure you have your restaurant food offering and menu established before you make any equipment purchases. We have seen businesses that purchase kitchen equipment before the food offerings have been decided upon which leads to huge amounts of capital being wasted.

• Do cost out your menu fully so that you can establish a pricing policy that covers your fixed overheads. Menu cards should be prepared with the exact ingredients and costing.

• Do engage a specialised restaurant accountant to assist with your financial forecasting and monthly reporting.

• Prepare a detailed marketing plan and utilise delivery channel providers, such as Deliveroo and Zomato. These online platforms could add an extra 40 percent on your sales each month.

• Do prepare a fully comprehensive competitor analysis in order to understand their pricing and product offerings.

• Do prepare a full milestone analysis as part of a fully rounded project management plan.

• Do check the permissions and NOC’s required from your landlord.

• Do check the power requirements of your restaurant equipment and ensure the restaurant unit you choose can support these.

Don’ts

• Don’t choose the first unit a real estate broker offers you. Many landlords will only offer a couple of month’s grace period on the rent and delays obtaining permissions could eat into your working capital.

• Don’t over estimate your first year’s sales.  Be realistic with your financial forecasting to avoid under capitalising your restaurant venture.

• Don’t try to open a restaurant on your own if you do not have any restaurant experience. The majority of restaurant ventures that fail in Dubai are down to owners trying to do everything themselves with no previous knowledge of the F&B sector or Dubai.

• Don’t overprice your menu offerings. With so much choice for the consumer in Dubai, getting your pricing right is fundamental to business success.

Top three ways new businesses can succeed in Dubai

Up to 80 per cent of new companies fail in the first 18 months

Dubai is a global hub for innovation and entrepreneurial initiatives. Here, an entrepreneur investing in an SME is meant to succeed. The government is on your team, and any resource you require is readily available. So, if you’re thinking of starting your own company, take my advice, there are only three things you need.

Up to 80 per cent of new companies fail in the first 18 months. That leaves behind a huge graveyard of ghost dreams. I have started six companies in my career, five of which are still operating. The one that died was a clothing brand. I was 25 years old, and I didn’t research the market well. I lost money and time, but I think the whole project was open and shut within six months, so I learned young to cut and run when I’m in a losing investment.

But why did I fail? What went wrong? Founders of failed companies agree that the top three reasons new businesses fail are:

1. MARKET: They provided a product/service that the market wasn’t demanding.
2. MONEY: They ran out of liquidity.
3. MASTERY: They didn’t have the right people on the team.

I call these the 3Ms of entrepreneurial success.

MARKET

Clearly, my precious clothing brand fell flat on the market. I had great designers, and an amazing supplier, but the market didn’t want my better-than-theirs, super-cool shirts and hats. There was no demand, so my product was what we call a ‘push’ product. It needed a lot of investment in marketing in order to push the product to a market that was not demanding it. With enough money invested in marketing, you can successfully transform a push-product into a pull-product (something in demand). But if I had kept going, I would have run out of money and failed on the money aspect as well. So I had the mastery, but not enough money to compensate for being weak on the market. My advice: invest in some market intelligence and don’t go for it unless you are 80 per cent sure that you have something that the market wants. Alternatively, make sure you have enough money to push.

MONEY

How much is enough? Well, that depends on what you’re trying to sell, to whom, your cost of goods, taxes, overhead, labour, and other indirect expenses. My advice is to start lean. Spend as little as possible for at least a year. My first marketing materials I made myself. One of my early successful companies was a media production company, and guess who the first editor was? Yes, I even learned Adobe Suite to keep labour costs low. Eventually, I made enough to hire editors and buy great equipment, but my initial capital was only Dhs35,000, and that was enough because I kept my operations lean. The Dubai Chamber of Commerce is a good source of information on where and how to access financing options in Dubai.

MASTERY

In Good to Great, Jim Collins said that where you’re going isn’t nearly as important as who you’re travelling with. I agree. There is not enough market or money to compensate for a lack of mastery. My first company was an education provider, and when I built our first official offices, I didn’t include an office space for myself. My assistant asked me where I was planning to sit, and I told her that I’d be either at the boardroom table or in a café downstairs. When asked why, I was thrilled to tell my team that they didn’t need me, the company could run without me, and it was due to their perfect blend of competence and character. Each member of the team was a master in their specific role, and with that kind of team, failure is nearly impossible. A big-man desk in a big-man office communicates high power distance in a company. The more mastery is present in your people, the less that hierarchy is required. My advice: be patient and picky. And for the record, it’s much easier to build competence than character.

With a strong market position, you don’t need much money. And with a lot of money, you can compensate for a weaker market position. Mastery is the only ingredient that’s non-negotiable. In a start-up, you don’t have the extra resources to compensate for bad character or a lack of competence.

With these three key ingredients, your business will succeed. Dubai is a great incubator for turning dreams into legacies. Count yourself lucky to be living in a country where the government is on your mastery team.

Source: gulfbusiness

Top 10 tips for doing business in the UAE

1. Be prepared to negotiate on prices

You will not always achieve your 1st price in the UAE. Everyone loves a bargain so be prepared for this.

2. Build your network

Referrals and word of mouth are some of the best marketing tools in the UAE, there are plenty of professional networking groups out there to help you with this.

3. Be personal

Business is often conducted face to face or over the phone with less reliance on email. Don’t launch straight into a sales pitch; ask after family and the well being of the person you are meeting first. People buy from people they genuinely like.

4. Meetings

These are often rescheduled or start later than planned, be prepared to be flexible. Lobbies of hotels can be good for meetings as they are easy to find but if you are discussing money or issues, a private meeting room such as those found in Business Centres are ideal.

5. Start up costs

Don’t get caught out. There is a lot to think about when starting your business here – office, company formation legalities, sponsorship. A Business Centre/Business set up company can make this very easy for you.

6. Be culturally aware

To be taken seriously by local people, make sure you dress modestly. Be aware of working restrictions during periods such as Ramadan when Muslims are fasting. Let your local client take the lead with greetings, handshakes between male and females can be unacceptable to some.

7. Business cards

Carry plenty. There is a heavy emphasis put onto business cards and it is customary to present these at every meeting with someone you have not met before.

8. A good business address on your stationery gets respect

Prime locations relevant to your business that are easy to find will be best for your company.

9. Keep up to date with legislation

The rules are constantly being updated. You will need a local trade licence and all staff will need visas to work in Dubai. Luckily there are plenty of Company Formation specialists who can help with this.

10. Understand the difference between DED and free zone licensing

A DED licence gives you 49% ownership of your company while a free zone licence gives you 100% ownership but you cannot sell products directly in Dubai

Source: oryxworldbusinesscentre

Business Startup | 5 Do’s And Don’ts To Make Your Business Profitable

5 Do’s in business startup Dubai

1. Select a local sponsor, a UAE national for local business startup

You need to get acquainted with the various facts associated with business startup in Dubai and avoid the problems encountered while launching a profitable enterprise in the UAE.

There are plenty of business opportunities available in Dubai, as well as in other Emirates of UAE. However, if you really want to start a business which must exploit the potential of Dubai then you need a locally registered LLC business.

A UAE national must be taken as a 51% partner who is called a local ‘sponsor’. A local company provides the freedom to locate the business anywhere in the city. For a business startup in Dubai this is a boon because it affords the best choice of locations to suit your budget.

A sponsor must be paid a yearly fee which can be negotiated. Do develop a rapport with your sponsor so that he is ready to help you in sorting out any problems you may face along the way with authorities.

2. Select a Free Zone if you wish to own your business 100%

Keep in mind that the only way for a business startup in UAE to start without taking a UAE national acting as your partner is to locate your business in one of the Free Zones. This is not practical for businesses that must be in city markets like restaurants and retail stores. Also businesses that work with the government have to be registered with a local sponsor.

Not to mention the fact that purchase or rental in a Free Trade Zone district might be high for your budget to handle.

For a business startup, Free Zones offer three great advantages

• 100% ownership
• Speedy start up
• Duty Free customs boundary.

3. Select a Location that optimizes suitability, convenience and costs

Another important step in planning a business startup in Dubai is to determine the most suitable location for the business. Setting up a profit-based enterprise in the city wouldn’t do you much good despite the growing economy if you’re customers or clients can’t reach you.

You need to set up your business in an area that is most profitable for your business or most convenient to your business. A location in the right city can be selected for a shop or an office most known for the type of product or service you are dealing with.

If you are planning a Free Zone company then you must make the selection based upon the criteria of distance, costs and if it is suitable for your product, business model and trade requirements.

A tenancy contract must be concluded. If you’re aiming to start a small-scale enterprise, then the basic amenities, like telecommunication, storage, and space inside the establishment is the basic concern that must also be satisfied. Other services available in the commercial property can vary greatly.

4. Confirm your Visa eligibility and requirement

For a business startup in the UAE a visa permitting you and employees to live in UAE is essential to run your business.

Visas are allowed for almost all businesses.

However their number varies according to a variety of criteria such as the size of the office, nature of business, category of the employee or the investor.

If your business startup in Dubai is a local company then you definitely need to work with your sponsor to get your visas – at least the first time.

Business visa application in Dubai is not as strict as most would think since the bureaucracy is quite open to foreign investors planning to set up shop in the city — any business is good business is the motto here.

However, you need to have your sponsor apply a visa for you as the investor of your business startup.

Aside from your passport and other legal requirement, a letter is also needed from your sponsor to highlight his or her, or your personal information, reason for the visa application, and the likes before processing.

Subsequently you may be allowed to apply for the visas of your employees if your sponsor agrees to give you the authority.

5. Hire a registration agent to take you through the process of business startup

Hiring a business advisory firm to register your business startup may be your best option.

These consultants will not only hold your hand right through the setting up process but will also actually register the company for you. And will help with opening your bank account, arrange for an auditor, do your renewals and offer you nominee services.

You may find their expertise in dealing with the local government bureaucracy and with Free Zone Authorities to be of great help in planning and itemizing the your business startup costs.

In most cases, these firms offer a team of experts to plan out your company registration from scratch — this includes the strategies you need to follow in order to smoothly set up your business, itemizing potential costs, offering licensing and location options, coming up with solutions for potential business hurdles, and so on.

Also, they will take care of all the necessary requirements to help you to have your business registered legally with minimal problems on your end.

Financing is usually not available to business startups. If you are unable to pay for the start up costs, perhaps you should wait before taking this step.

5 Don’ts in business startup Dubai

1. Do not register your company in a Free Zone without taking a look at the available office sizes and preconditions

Often the published information for a Free Zone gives a wide choice of offices. The actual availability keeps changing. A business startup normally looks for the cheapest option.

It is probable that when you actually go for registration of the company you may find that only certain office sizes are available. This will throw your budget into disarray.

It may be too late to change your Free Zone then. Or it may happen that certain offices allow only 1 visa that too only for investor and not for the employees. So do not proceed until all aspects about the office are confirmed.

2. Do not make firm plans based only on published information

Before you finalize the plans for your business startup it is prudent to confirm the validity of the published information.

Rules change in Free Zones and also in the local Department of Economic Development for business registration.

Do not go ahead until you have confirmed your assumptions through a business set up consultant or by actually contacting the relevant authority.

You may discover that some papers may be needed or that some nationalities need special permissions or that some requirements may be waived if you request or negotiate.

3. Do not choose a license category blindly without confirming if it allows your business model

In the UAE, it is not difficult to devise a business model that will not need a change. Very often much change or at least some tweaking is needed.

Make wide possibilities and confirm whether your planned license category allows you all the activities that will be likely in the business model you are planning. Do not choose a license category that is too narrow.

4. Do not open a bank account without confirming the bank charges

Banks levy varying charges. For a business startup these can amount to a substantial sum for a bank dependent operation. Always confirm the requirements and charges beforehand. Do not choose a bank based on only the reputation.

5. Do not sign a sponsorship with local sponsor without a written legal agreement

Your business startup may need a lot of support initially. A local sponsor may want to charge separately for some services.

Do not go ahead with sponsorship until both sides have agreed on what to expect from each other and a written agreement is drawn up and attested in the local court. Do not rely only on verbal understanding.

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9, New LLC Company Setup
10, Business consultancy
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All you need to know about local sponsorship in the UAE

It is very important for foreign investors to understand the role and functions of local sponsors

One of the challenges to start and operate a business in the United Arab Emirates ‘mainland’ is the element of the local sponsor owning 51 per cent of the business.

Historically, the legislation in Gulf states has only allowed partial ownership to expat businessmen. It is now changing and a number of GCC states are passing new legislations and establishing free trade zones allowing 100 per cent foreign ownership.

However, in the mainland, it is still a 51 per cent (local) and 49 per cent (expat) shareholding structure.

Hence, it is very important for foreign investors to understand the role and functions of local sponsorship. Here we will tell you everything about local sponsorship in UAE.

WHAT

Local sponsorship is a compulsory condition for a person of foreign origin who wants to establish a business in the UAE mainland. This condition doesn’t apply to freezones. There are three types of local sponsorship and the selection is based on your business activity.

Types of sponsorship

The three types of local sponsorship include corporate sponsorship, individual sponsorship and the association with a local service agent.

Corporate Sponsorship – When a UAE national company owned by locals holds 51 per cent of the share and liabilities of a company owned by an individual or group of partners of foreign origin. In this case, the business is sponsored by a company, rather than an individual.

It is a myth that the local sponsor will share only the company’s profits; it is accountable for all the actions.

When – Works when you want to set up a limited liability company, a trading company or a manufacturing unit.

Individual Sponsorship– When an Emirati national in his/her individual capacity becomes your sponsor. It is not necessary that he/she is also operating a business in the same domain. The individual may be a professional, a government employee in the UAE or a businessman.

The Emirati will also hold a 51 per cent share and a 51 per cent liability of the company. In this type of sponsorship other options are also available. The local sponsor can hand over the power of attorney to the foreign partner and ask for a fixed annual fee.

When – Works when you want to establish a trading company or a limited liability company

Local Service Agent – When a professional – a doctor, an engineer or an artisan – wants to set up their business by offering professional expertise. In this case you will require to appoint a local service agent. This agent will merely act as a representative of the company in all administrative dealings with government departments (for immigration and ministry of labor formalities). He/she will not hold a 51 per cent share of your company.

The remuneration of the agent is normally agreed on an annual fixed fee basis and is a matter of commercial agreement. It can vary depending on the social and family prominence of the service agent and the precise contribution he/she makes to the business.

When – A local service agent can be appointed in following cases –

• For professional licences
• For branch of foreign companies
• For representative offices

Source: gulfbusiness

Big 5 exhibitors eye $2t construction industry

The Big 5, the largest construction and building industry showcase in the Middle East, opened on Monday at the Dubai World Trade Centre with more than 3,100 exhibitors showcasing their products and services targeting region boasting a vibrant construction pipeline of around $2 trillion worth of projects.

The event was inaugurated by Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance and Industry.

dmg events, organisers of the four-day event, said the exhibition assumed greater significance as Dubai is driving the new round construction boom in the region.

The value of Dubai's construction projects in the execution and planning stages is expected to reach a record of $390.7 billion this year. A total of 13.7 per cent of these projects, which are valued $53.5 billion, are currently under progress despite the oil slump.

A report estimated that the total spend on infrastructure projects related to Dubai Expo 2020 might reach up to $18 billion, with estimated development costs of the Dubai South area between $8.1 billion and $8.7 billion.

The UAE, one of the world's most attractive construction markets, hosts a robust construction pipeline of more than $700 billion, over one-third of the GCC's pipeline, according to the recent report "Powers of Construction: 2016" by the consultancy Deloitte.

Legoland Dubai's Castle Kingdom and Building Experience joins the Abu Dhabi Midfield Terminal, Al Habtoor City Theatre, Dubai Opera, and NAS Arena are some of the UAE projects that won Tekla Global Building Information Modeling (BIM) Awards for their leading use of 4D digital models that can enhance productivity and collaboration.

"This year has been a seminal moment for GCC construction innovation, and 2017 will see continued momentum with government BIM directives, 3D printing and pre-fabrication, and BIM gaining wider take-up. The UAE's strong showing in international awards demonstrates the country's standing as a global BIM leader," said Paul Wallett, Regional Director of Trimble Solutions Middle East.

The Big 5 is expected to draw 75,000 participants along with national pavilions from all major exporting countries in East and West. This year, the teams from France, Italy and Brazil are in force with their innovative products.

This year's Big 5 edition has several key features including dedicated product sectors, live product demonstration, a one-day Excellence in Construction Summit, a tools demonstration besides a brand new floorplan layout clustered in five product sectors. The five product sectors in which exhibitors are grouped this year are: Building Interiors & Finishes, MEP Services, Building Envelop & Special Construction, Construction Tools & Building Materials, and Smart Building & Design technologies.

Another key highlight of the show is the dmg events' strategic partnership with Dubai Economic Council for the debut "Excellence in Construction Summit" on the sidelines of the expo. Taking place today, the summit will draw 500 industry leaders to discuss current and future trends of the construction sector in Dubai, the GCC region and beyond. Besides this, the giant construction expo will also feature key events such as the FM Expo, PMV Live and Middle East Concrete thus providing complete building solutions.

Source: khaleejtimes

Dubai makes it easier to pass driving tests

The Roads and Transport Authority of Dubai (RTA) has unveiled its smart yard initiative, a key phase of testing driver licence applicants. The yard is fitted with sophisticated technological devices and a testing vehicle that gives accurate and credible results.

Ahmed Bahrozyan, CEO of RTA Licensing Agency, said: "The smart yard is fitted with five surveillance cameras - four of them outside the vehicle to guide the examinee to the locations of the five manoeuvres (movements). The fifth camera is fitted on board the test vehicle to verify the identity of the driver during the test. The vehicle is equipped with more than 20 sensors to help the examinee avoid collision in case of approaching any obstacle.

"The yard is fitted with sensors that automatically transmit images of the test once the vehicle passes through them to a processor that spots mistakes made by the driver. The captured images are then transmitted to an interactive screen in a control tower installed in the testing yard where a staff will retrieve results and use them in the assessment of the examinee.

Advantages of smart yard

> The examiner can monitor more than one examinee at a time, which means reducing the number of examiners by as much as 35 per cent

> It will enable handling more applicants and accordingly reducing the waiting lists

> Complaints of some examinees that their test results are impacted by perceptions of controversial mistakes on the part of examiners can be eliminated

Source: khaleejtimes

Is it a good time to buy gold? Price reaches record low

Gold dropped to its lowest in 5-1/2 months on Friday and was set for a second weekly decline, dragged down as the U.S. dollar soared after comments from the Federal Reserve bolstered expectations U.S. interest rates would rise next month.

Spot gold had fallen 0.6 percent to $1,208.56 an ounce by 0225 GMT, after marking its lowest since May 30 at $1,204.99 earlier in the session.

U.S. gold futures earlier dropped nearly 1 percent to $1205.0 an ounce. The dollar index hit its highest since April 2003 and was set for its biggest weekly gain in a year after Fed Chair Janet Yellen provided a strong signal that U.S. interest rates would likely increase by year-end.

"Yellen's comments and a stronger dollar have pulled down the entire precious metals complex. Gold will be on a downtrend for now," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central. "People are speculating that Trump's policies will improve companies and equity markets, and lots of them are going to stocks and currencies. Gold has lost a bit of its safe-haven asset status." The election of Donald Trump as U.S. president has done nothing to change the Fed's plans for a rate increase "relatively soon", Yellen said on Thursday in Congressional testimony.

Gold is highly sensitive to interest rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. Spot gold may drop towards $1,172 per ounce, as it has broken support at $1,210, according to Reuters technical analyst Wang Tao. But Macquarie analyst Matthew Turner said in a note that it was not certain that Trump's economic policy would be "gold negative".SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.61 percent to 920.63 tonnes on Thursday from 926.26 tonnes on Wednesday.

Meanwhile, silver was down 0.53 percent at $16.57 an ounce and platinum fell 1 percent to $921.49. Both metals were set for a second consecutive weekly decline. Palladium fell nearly 2 percent to $712.97 an ounce, but was set to post a third weekly rise.

Source:khaleejtimes

$8 billion budget for Expo 2020 Dubai

The budget for the Expo 2020 Dubai site is estimated to be between $8.1 billion and $8.7 billion, according to the latest BNC report commissioned by The Big 5.

Situated midway between Abu Dhabi and Dubai, the Expo 2020 site will be served by a world-class road network, a brand-new extension to the Dubai Metro system and three international airports, Expo 2020 organisers announced.

The Al Maktoum International Airport will be expanded in order to handle up to 200 million passengers by 2020, thanks to an investment of approximately $32 billion.

Josine Heijmans, The Big 5 Event Director, said: “The airport is part of the secondary infrastructure that will support the Expo 2020 Dubai. This project is not entirely dependent on hosting the event, but responds to the rise in expected numbers of travellers to Dubai.”

Bringing together more than 180 nations and an international audience of 25 million visitors, the Expo 2020 Dubai is currently under development on a 438-hectare area in the Dubai South district.

According to BNC’s report for The Big 5, $30 million is being allocated to develop the Expo Village at the Dubai Exhibition City in Dubai South. This project, which is currently in the tender phase, consists of a residential development providing full-time housing facilities for participating countries’ staff working on the Expo. After its completion, expected by 2018, pavilion construction activities will start.

The UAE Pavilion will cost approximately $30 million. The 15,000 sqm project will include exhibition areas, an auditorium, food and beverage outlets and VIP lounges.

Designed by Spanish architect Santiago Calatrava and inspired by a falcon in flight, the UAE Pavilion will be located in Dubai South.

The Big 5 2016 construction event will be held from November 21-24 at Dubai World Trade Centre.

Source: 7days

Air Arabia profits up

Low-cost carrier Air Arabia has recorded a Dhs297 million net profit for the third quarter of 2016 – up 26 per cent compared to Dhs235 million reported in the corresponding period of 2015.

For the three months ending September 30, 2016, the airline carried 2.27 million passengers, a 14 per cent increase compared to Q3 2015.

The airline served over 2.27 million passengers in the third quarter of 2016, a 14 per cent increase compared to 2 million passengers in the same period of last year.

Sheikh Abdullah Bin Mohammed Al Thani, Chairman of Air Arabia said: “The strong third quarter and year to date performance is a reflection of Air Arabia’s commercial and operational strengths supported by the company’s commitment to deliver high value air travel to its customers and return on investments to its shareholders.”

He added: “Despite challenging trading conditions driven by excess capacity in the market, political instability in some markets and the effect of lower oil price in the regional economies, we remain confident about the long-term prospects for the low cost industry in region and our ability to continue with our growth plans while delivering our value-for-money promise to our customer’s everyday”.

The low-cost airline served over 6.3 million passengers in the first nine month of 2016, a 14 per cent year-on-year increase.

Air Arabia completed 13 years last month, maintaining its continuous record of profitability since its first year of operations.

The carrier added five new routes to its global network during the first nine months of 2016 from its operating hubs in the UAE, Morocco and Jordan.

Source:7days

How will Donald Trump’s victory impact finances and investments in UAE?

After the American public voted in Republican nominee Donald Trump as President-elect last week it sent shockwaves through politics and the global financial industries.

With such a surprise result and with any change in political direction creating uncertainty, the result will undoubtedly affect world economies and, ultimately, the investments of residents in the UAE and the Middle East.

Here, Hamzah Shalchi, regional manager at Guardian Wealth Management, reviews the predicted financial impacts.

STOCKS

“In the run-up to the election, when it became clear that the result was no longer a given, markets had begun to react and thus, both stocks and bonds moved lower. How markets will react in the coming weeks is unsure but Barclays predicted that the S&P 500 would nosedive by between 11 to 13 per cent in the event of a Trump victory.”STOCKS

BONDS

“The US benchmark 10-year yield has only recently recovered from the 39 basis points (0.39 per cent) fall inflicted by the Brexit vote. Now experts believe the benchmark could slip at least 10 basis points (0.1 per cent) again, although Trump’s planned tax cuts and infrastructure-spending could, in time, drive them back up.

“Energy industry bonds are likely to rebound after two years of major losses thanks to Trump’s public support for fossil fuels. History tells us that the stock market performs better under a Democratic president.

“Over the past 100 years The Dow Jones Industrial Average has produced average returns of 82.7 per cent under a Democratic president, compared to the 44.8 per cent average returns under a Republican government.”

CURRENCIES

“As Trump continued to gain on Clinton in the election results, the US dollar began to fall against the British pound, euro and Japanese yen and this is expected to continue as uncertainty hits the market over fears about his policies. For example, immediately in the hour following the election results, the US dollar plummeted by around 4 per cent only to recover slightly post-Trump’s victory speech.

“By voting for Trump, the US has essentially taken a giant leap into the unknown and historically such moves have a negative impact on the relative value of currencies. “As the UAE dirham is pegged to the US dollar, it is likely to be impacted by the fluctuation against developed currencies such as the British pound and Swiss franc.”

COMMODITIES

“In times of uncertainty, nothing glitters quite like gold. Investors looking for safe-havens often turn to precious metals such as gold, silver and platinum when the value of the dollar falls against other currencies. “Additionally, natural gas prices will fall and oil prices could get a lift.”

WHAT’S NEXT?

“Whether it’s a slight ripple or giant shockwaves, investors can be certain that whatever happens next in the US will impact the whole world. “It is difficult to predict what markets will do next, however, remaining invested through periods of volatility can provide stronger returns than attempting to second guess what will happen.”

Source: 7days

Smart vehicle under trial at Dubai’s Business Bay

Dubai’s Roads and Transport Authority (RTA) has teamed up with Dubai Properties to carry out trials of smart vehicles across parts of Business Bay.

The trial operation of autonomous vehicles, each capable of lifting 10 persons, is being carried out over a 650m track in Business Bay District.

The step follows the first and second phases of the trial operation of smart vehicles in Dubai World Trade Centre and the Mohammed bin Rashid Boulevard.

Ahmed Bahrozyan, CEO of RTA’s Licensing Agency and chairman of its Smart Vehicles Committee, said responses to questionnaires floated by RTA spurred the trial operation’s third phase.

“Autonomous vehicles have continued to accomplish their success, as proven by the sustained riders satisfaction rating derived from the experience at the Mohammed bin Rashid Boulevard between 1 September and 5 October this year, where the overall satisfaction rating clocked 95%,” he said.

“The debut of autonomous vehicles experience in the Dubai World Trade Centre last Ramadan yielded satisfaction rating of 92% according to inputs of two questionnaires conducted by RTA.

“Visitors were lifted over a month from ground car parks to the main restaurants, hotels, and landmarks at the Mohammed bin Rashid Boulevard on the route of the vehicle.”

Dubai Media Office reported that Bahrozyan said RTA is considering expanded deployment of autonomous vehicles across Dubai’s metro stations, malls, and tourist spots.

The agency is also working to draft rules and legislations geared at the implementation of Dubai’s smart mobility strategy, he added.

Source: constructionweekonline

Dubai to Abu Dhabi in 12 minutes: It’s happening…

The Hyperloop is no longer just a pipe dream: in fact, if the technology stands up the first system will be in the UAE, possibly within five years…

There’s been speculation for a while, but it’s just been confirmed that the first Hyperloop will be built in the UAE. This means passengers will be able to travel between the emirates at 1,200 kilometres per hour (the max speed of a Boeing 747 is 825 kilometres per hour).

How do we know it’s happening here? Well Hyperloop One, the leading Hyperloop company in the world, has just signed a deal with RTA to intensely study building the first system here (for both passengers and cargo).

So yes, that means a journey from Dubai to Abu Dhabi will take only 12 minutes.

When will it all start? Well they’ve said that they could have an operational system connecting Dubai to the capital by 2021. 

“We are now at a stage where, from a technological point of view, we could have a Hyperloop One system built in the UAE in the next five years. Our agreement with the RTA is the biggest step yet towards achieving this goal,” explained Rob Lloyd, CEO of Hyperloop One.

“Imagine stepping out of your villa in Dubai, into a self-driving vehicle that resembles your living room,and arriving just 48 minutes later at your office in Riyadh. That is what Hyperloop One can deliver,” explained Josh Giegel, Hyperloop One’s President of Engineering. Here’s a vision of the start of that journey happening:

HOW WILL HYPERLOOP WORK?

If a Hyperloop system develops around the world it will change the way we travel says Bjarke Ingels, the founder of BIG, a design firm working on the project:

“Collective commuting with individual freedom at near supersonic speed: we are heading for a future where our mental map of the city is completely reconfigured, as our habitual understanding of distance and proximity – time and space – is warped by this new form of travel.”

 The Hyperloop would likely be a bunch of small pods (rather than one large train) and would be on demand, leaving when you want to leave, and going directly to your chosen station.

The infrastructure will be made up of large tubes that run between destinations, and the pods will hover in these (they’d levitate rather than be on tracks). The environment within the main tube will be controlled so that there will only be a very small amount of air in the environment, creating a suction of sorts, so that the pods move from one end to the other (very, very quickly – kind of like a parcel in a postal shoot). They’re working on plans to run them either underwater or above ground.

Remember the transport pods that will take you from New York to Beijing in just two hours? Or from Abu Dhabi to Dubai in 15 minutes?

The plan shows that Hyperloop One intend to connect the two emirates, which are 150km apart. The map reveals that they are looking into connecting Dubai Airport, the Burj Khalifa, Dubai Marina, Al Maktoum Airport, Abu Dhabi Airport and the centre of Abu Dhabi (with offshoots to the major ports too):

Hyperloop One is partnering with the RTA over the next three months, and by the end of that period they say they’ll be able to show the government that their network will reduce congestion in Dubai by 20 per cent and will reduce emissions by a strong 30 per cent.

“I love that we’re working on something that’s cutting edge, and that can hopefully improve people’s lives, give them back more free time,” explained James Coutre, director of Product Engineering at Hyperloop.

Source:whatson