The year that was 2008

 January

CYPRUS AND MALTA ENTER EUROPEAN UNION AND ADOPT EURO 

JANUARY 2

Mediterranean island nations of Cyprus and Malta join European Union as full members with their currencies converted into euro.

The adoption receives overwhelming response from the people of the two countries with the majority of citizens of the two countries believing the euro will drive prices upward and improve their economies, according to a European Union survey. The leaders of the two nations, the Cypriot President, Tassos Papadopoulos, and Maltese Prime Minister Lawrence Gonzi welcome the move as a new dawn of prosperity for their nations.

TATA UNVEILS WORLD'S CHEAPEST CAR 

JANUARY 11

Tata Motors unveiled the world’s cheapest motor car at India’s biggest car show in the capital, Delhi. The vehicle, called the Tata Nano, will sell for INR100,000 or $2,500 and enable those in developing countries to move to four wheels. The four-door five-seater car, which goes on sale later this year, has a 33bhp, 624cc, engine at the rear. It has no air-conditioning, no electric windows and no power steering.

UAE SIGNS NUCLEAR DEAL WITH FRANCE

JANUARY 6

The United Arab Emirates signed an agreement with France to help acquire nuclear technology for peaceful purposes.

The nuclear deal was signed during French Prime Minister Nicolas Sakozy’s visit to the UAE capital. The signing was witnessed by President His Highness Sheikh Khalifa bin Zayed Al Nahyan. Under the agreement the two countries will form a joint high-level committee to oversee co-operation in the areas of nuclear power generation.

DUBAI PROJECTS DH 11.4BN BUDGET SURPLUS FOR 2008 

JANUARY13

Dubai’s balance sheet will post a surplus of Dh11.4 billion this year, more than double the level of Dh5.1bn in 2007. According to a decree issued yesterday by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, revenues for fiscal year 2008 are expected to touch Dh135.6bn.

ABU DHABI TO BUILD 55,000 HOUSING UNITS FOR LOW-INCOME EXPATRIATES

JANUARY 16

A newly established real estate company, Abu Dhabi Commercial Properties, had announced a budget of Dh20bn for the construction of residential buildings for expatriates, totalling 55,000 apartment units. The plan comes under Abu Dhabi Government’s initiative reduce the gap between supply and demand of affordable properties and control rents from rising.

EUROPEAN BIG FOUR JOIN HANDS TO FIGHT CREDIT CRUNCH 

JANUARY 18

Europe’s top four economies, France, United Kingdom, Germany and Italy, announced joint coordination of efforts to combat financial market instability and voiced hope that the region will weather a credit crunch that central banks are struggling to fight off.

“If there are two words that we should focus on, they are transparency and supervision,” French Finance Minister Christine Lagarde told a news conference after hosting a meeting with her counterparts from Germany, Britain and Italy.

UK AND CHINA TO BOOST TRADE TO $60BN BY 2010

JANUARY 19

Three days after a landmark first visit to China by Indian Prime Minister Manmohan Singh, his British counterpart Gordon Brown arrived in Beijing on his maiden visit with the objective of tackling climate change and boosting two-way trade and investment at the top of his agenda.

Brown’s two-day trip is a first by a European leader this year to China, and has been billed by officials in London and Beijing as being of vital importance to the strengthening of ties between the two countries.

US AND SAUDI ARABIA AGREE ON OIL MARKET STABILITY

JANUARY 21

The US Energy Secretary, Samuel W Bodman, and his Saudi counterpart Ali Al Nuaimi agreed on the need to maintain stability in oil markets. The Saudis displayed their plans to increase output capacity of crude oil, and spoke of the need to increase refining capacity locally and internationally.

GCC PANEL TO SETTLE DISPUTE AMONG MEMBER STATES 

JANUARY 28

The Gulf Co-operation Council (GCC) General Secretariat announced the establishment of a panel for settling trade disputes between member states. The decision was announced by GCC Secretary General Abdul Rahman Al Attiyah at a symposium on the GCC common market hosted by the Saudi Eastern Province Chamber of Commerce and Industry in the Saudi capital of Riyadh. Al Attiyah said the trade settling panel within GCC was formed to allow citizens of member countries to freely involve in trade, financial, economical and all other beneficial activities.

ECONOMIC CITY TO GET $5BN SMELTER

JANUARY 31

Abu Dhabi’s Mubadala Development Company and Dubai Aluminium Company announced a $5 billion investment in Saudi Arabia to set up a green-field smelter complex in King Abdullah Economic City.

The proposed smelter will have a production capacity of 700,000 metric tonnes per annum, with the potential to double the production capacity. Emal International signed an MoU with Saudi Arabian General Investment Authority and Emaar, The Economic City (Emaar EC) for the project.

February

HAMDAN NAMED CROWN PRINCE 

FEBRUARY 2

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE, has appointed Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum as Crown Prince of Dubai. In his capacity as Ruler of Dubai, Sheikh Mohammed yesterday issued a decree, effective immediately, announcing the appointment. He also issued a decree naming Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum and Sheikh Hamdan bin Rashid Al Maktoum as Deputy Rulers of Dubai.

INVESTORS SHIFT TO FOREX TRADING ON STOCK FLUCTUATIONS 

FEBRUARY 3

Investors in the UAE channelled part of their money, withdrawn from the stock exchanges following the continuous bearishness to currencies and property markets.

Currency experts in the country said investors who pulled out part of their investments in stock markets are directing these funds to two major fields, 40 per cent in forex trading and 60 per cent in UAE property market.

CITI CLAMPS DOWN ON UK’S RISKIER CARD USERS

FEBRUARY 4

In a sign of more consumers losing access to loans, Citi-group told some 161,000 credit card customers in the UK that they can use their cards until the first week of March and then they will no longer be able to tap the New York bank for any credit.

NEW REGULATIONS TO HELP PROTECT RIGHTS 

FEBRUARY 7

Dubai Lands Department came up with several new plans to keep pace with the frenetic development and to ensure standards are met  and rights are protected. Besides the escrow account, a property index and classification system would be put in place.

NAKHEEL BUYS LONDON PROPERTY FOR £130 MILLION

FEBRUARY 8

A consortium backed by Nakheel Hotels  bought a landmark London Property for £130 million (Dh975m) from the portfolio of the Queen of England, the Dubai World’s investment arms said. The purchase of the Metropole building and 10 Whitehall Palace was made by International Hotel Investments (IHI), in which Nakheel Hotels is the principal shareholder.

SOCGEN TO SELL STOCK AT STEEP DISCOUNT 

FEBRUARY 11

Societe Generale, the French bank reeling from a trading scandal, launched a rights issue at an extremely steep discount, aiming to raise £5.5 billion (Dh23.65bn) to bolster its balance sheet.

DUBAI BUYS QATAR OMX STAKE

FEBRUARY 14

Borse Dubai bought Qatar Holding’s 9.98 per cent stake in the Nordic stock-exchange operator OMX. The Swedish financial supervisory authority said Qatar Holding has sold its complete stake in OMX corresponding to about 12 million shares.

DUBAI TO INVEST $20bBN IN S KOREA

FEBRUARY 16

Dubai is seeking to invest more than $20bn in South Korea in the immediate future, the head of the Investment Corporation of Dubai (ICD) said in the capital, Seoul. Mohammed Al Shaibani, Chief Executive Officer of the ICD, announced the proposals during a meeting with South Korean President-elected Lee Myung-bak.

CAR PLATE SOLD FOR DH52.2 MILLION

FEBRUARY 17

Abu Dhabi broke world record of selling a car number plate for more than Dh50 million at an auction raising funds for road accident victims and people with special needs.

The single number plate ‘1’ came under the hammer at the sixth Vehicles Number Plate Auction of Abu Dhabi Licensing and Vehicles Registration Department. It was bought by Saeed Abdul Ghaffar Khoury, a young businessman from Abu Dhabi with interests in share markets and real estate, with his highest bid of Dh52.2 million.

ARBITRATION CENTER OPENS AT DIFC

FEBRUARY 18

The Dubai International Financial Centre (DIFC) announced a joint venture with the London Court of International Arbitration to offer dispute resolution services to all business and commercial sectors, providing a cost-effective and timely alternative to civil courts. The venture established new centre for the administration of international arbitration and mediation to complement the independent legal and regulatory framework of the DIFC.

WORKERS START TO GET PAID THROUGH POST OFFICES 

FEBRUARY 18

Emirates Post branches started paying out private company workers’ salaries under a scheme intended to prevent malpractices such as late payment or non-payment. Employees can collect their wages at designated post offices and Wall Street Exchange mobile unites at labour camps.

NASDAQ COMPLETES DEAL WITH OMX

FEBRUARY 28

The Nasdaq Stock Market completed its deal with OMX Ab, creating the world’s largest exchange company, the Nasdaq OMX Group. “Nasdaq OMX Group is a new type of exchange company. It is unique in its ability to serve customers at multiple levels,” said Bob Greifeld, CEO of the group.

As part of the transaction, the Nasdaq OMX Group also became a shareholder in DIFX. 

March

INVESTMENT BODY SET UP 

MARCH 1

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, sponsored the inauguration of the Dubai Government Investment Foundation. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai also attended the event.

ABRAAJ CAPITAL BUYS STAKE IN BOSICOR GROUP 

MARCH 4

Abraaj Capital announced it acquired a stake in the holding company of Bosicor Group positioned to become one of Pakistan’s leading integrated oil companies.

FED TO INJECT $100BN TO BOOST BANKING LIQUIDITY

MARCH 9

The Federal Reserve escalated its efforts to alleviate strained credit markets by announcing dramatic increase in the amount of cash it will direct specifically to the banks and markets that need it most.

ABU DHABI GROUP BUYS GEORGIAN BANK 

MARCH 10

Abu Dhabi Group bought Georgian Standard Bank from the private equity group Salford Capital, which was close to Georgian billionaire Badri Patarkatsishvili who died in February this year.

REAL ESTATE LAW DRAWN UP IN AJMAN 

MARCH 10

A special department was rolled out by the Government of Ajman to regulate the booming real estate sector.

The new Ajman Development and Investment Authority was preparing freehold laws and was to impose escrow accounts and strata regulations similar to those adopted by the  Dubai Lands Department.

“Ninety per cent of the work on creating a structure for the issue of property ownership documents, the registration of developers and setting up escrow accounts has been completed,” said a senior official.

NO REVALUATION FOR NOW 

MARCH 11

The UAE Central Bank’s decision to let lenders borrow in dollars against certificates of deposit (CDs) sent a clear message to the markets that the dirham revaluation would not take place any time soon, said analysts and bankers.

AIRBUS SUFFERS OPERATING LOSSES OF MORE THAN $1BN

MARCH 12

European aircraft manufacturer Airbus suffered an operating loss of more than a billion dollars last year despite record orders for its aircraft, forcing parent firm EADS into the red, company results showed yesteryday.

SOCIETE GENERALE RAISES €5.54BN IN RIGHTS OFFER 

MARCH 12

Societe Generale, France’s second-largest ban, raised €5.54 billion in a rights offer to replenish capital depleted after trading losses and write-downs.

FULL OWNERSHIP FOR FOREIGNERS OUTSIDE FREE ZONES 

MARCH 13

Foreigners are to be allowed full ownership of businesses outside of free zones in a widespread shake-up of the Company Law in the UAE. The changes, announced yesterday by Minister of Economy Sultan bin Saeed Al Mansouri, would apply to only specific sectors. “The legislation will be ready within six months,” said Al Mansouri. “We will allow foreign ownership wherever it helps the economy of UAE.”

GCC STATES MUTUAL INVESTMENT LOW AT $40 BILLION

MARCH 14

Gulf Arab states have mutual investments of about $40 billion (Dh147bn) but the figure is a fraction of their total assets abroad, a regional bulletin said.

Trade among the six Gulf Co-operation Council (GCC) countries also accounted for as little as six per cent of their total commercial exchange in 2007 but the level could be as high as 30 per cent if oil is excluded, said Al Iqtisad AL Khaleeji magazine, which is published by the Dammam-based Federation of the GCC chambers of Commerce, Industry and Agriculture.

FOREIGN INVESTORS GET 14% RETURNS

MARCH 15

Foreign investors in Dubai’s property market saw almost five times better returns through rents than in other countries, said the managing director of a joint venture between Indian and Dubai-based property developers.

DU ANNOUNCES 254 PER CENT GROWTH 

MARCH 18

Du, the UAE’s second telecom operator, announced a 254 per cent growth in sales at its general assembly meeting.

The meeting was convened in the presence of shareholders representing 82 per cent of the company’s capital.

SHAREHOLDERS APPROVE SALE OF AABAR'S ASIAN OIL UNIT TO MUBADALA 

MARCH 20

Aabar’s sale of its Asian oil exploration unit to the Abu Dhabi Government was approved by 30 per cent of shareholders, even after the initial offer was lowered.

“Mubadala’s revised offer was proposed in the third extraordinary general meeting, and 30 per cent of our shareholders showed up and approved it,” Chief Financial Officer Mohamed Badawy said.

DUBAI IS 40TH MOST EXPENSIVE CITY 

MARCH 20

Dubai has been ranked the 40th most expensive city in the world, according to new research “Prices and Earnings” – a comparison of purchasing power around the globe.

However, when the prices including rents are compared, the emirate moved up six positions to become the 34th most expensive city, moving ahead of Athens, Auckland, Singapore and Moscow.

EMAAR SHAREHOLDERS APPROVE 20 PER CENT DIVIDEND 

MARCH 20

Shareholders of Emaar Properties voted to accept a cash dividend of 20 per cent of the nominal value of the share for 2007.

At an annual general meeting (AGM) that contrasted sharply with the virtual screaming match last year, Chairman Mohammed Ali Alabbar rejected demand for a higher cash or share payout, saying the company needed the money to finance expansion. A similar 20 per cent cash dividend for 2006 had disappointed shareholders, sending Emaar’s stock price into a five per cent plunge the next day. 

VISA RAISES $17.9BN IN RECORD OFFERING 

MARCH 20

Visa burned its name into the record books for US initial public offerings, raising $17.9 billion as investor seized on its growth potential and lank of direct exposure to the credit crisis.

 

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