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Sunday, 6 November 2011

Vision dims for Abu Dhabi - International | IOL Business | IOL.co.za

Abu Dhabi, the emirate that bailed out Dubai in 2009, set out to avoid the pitfalls suffered by its Persian Gulf neighbour with a decades-long plan to replace oil revenue with industry and tourism as drivers of growth.

Now those plans needed to be scaled back as companies behind some of the sheikhdom’s biggest developments cut jobs and postpone projects, said Ghassan Chehayeb, the associate director of research at Dubai-based Exotix.

Delays include beachfront apartments, the first office building that makes more energy than it uses and branches of the Louvre and Guggenheim museums.

Earnings tumble as airlines face new turbulence

Hefty falls in earnings for aviation giants Singapore Airlines and Emirates are the clearest signs yet of fresh turbulence just three years after the 2008 financial crisis wreaked havoc, analysts said.

The two companies, regarded as among the industry's most well-managed carriers, cited escalating fuel expenses and growing unease over the global economy as the main drag on profits.

Both airlines rely heavily on intercontinental passenger and cargo traffic to drive earnings and the decline in profits announced Thursday reflects the severity of the situation facing the sector, analysts said.

Jet leasing firm DAE cuts orders further - The National

Dubai Aerospace Enterprise (DAE) has scaled back its purchase orders for Boeing jumbo jet freighters, opting for fewer, smaller airplanes.

The Dubai company, which leases out aircraft, has switched five of its 15 orders for the 747-8 to the 777, with the five new airplanes to be leased to Emirates Airline, Bloomberg News reported.

"We are constantly working with our customers to evaluate how to best suit their needs," Jim Proulx, a spokesman for Boeing, told Bloomberg News.

From a creek to a river of success - The National

Decades ago, when Dubai was little more than a small city in a large desert, it set about the expensive and laborious process of dredging the Creek.

The aim was simple - to give dhows easier access.

But it turned out to be the first in a series of policy decisions leading to the establishment of an operation further down the coast that now accounts for about a fifth of the emirate's economy.

Panel rules for Citigroup in dispute - The National

An arbitration panel in New York has ruled against theAbu Dhabi Investment Authority (Adia) in its dispute with Citigroup over a US$7.5 billion (Dh27.54bn) investment.

The ruling, which was handed down on October 14 but not announced publicly at the time, puts an end to the two-year disagreement in which Adia had alleged "fraudulent misrepresentations" by Citigroup in the dealings leading up to the transaction.

"An arbitration panel issued a final award and statement of reasons finding in favour of Citigroup on all claims asserted by the Abu Dhabi Investment Authority in connection with its $7.5bn investment in Citigroup," the banking company said in its quarterly earnings.