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28 March 2024

The year that was 2008

Sheikh Mohammed at the inauguration ceremony of Noor Dubai TV. (IMRAN KHALID)

Published
By Staff Writer

Here is our summary of the top news events from the third quarter of 2008.

 

July

DAMAS LISTS SHARES ON DIFX

JULY 9

Jewellery group Damas International become the first retail stock to trade on the Dubai International Financial Exchanges index. However, listing on the debut day was listless with very limited transactions.

OIL HITS A NEW HIGH OF $147 AMID CONCERNS OF TIGHT GLOBAL SUPPLIES 

JULY 12

Oil prices set a new record near $147 a barrel, boosted by concerns over possible disruption of tight global supplies amid tensions over Iran's launch of test missiles and the threatened renewal of oil-related violence in Nigeria.

RAK DECREE FOR DEVELOPERS 

JULY 14

The Government of Ras Al Khaimah issued a decree making it mandatory for developers wishing to sell off-plan units in real estate projects to open a guarantee account. The decree is on the lines of Trust Account laws implemented by the Dubai Government, which is essentially an escrow account. RAK becomes the third emirate after Dubai and Ajman to incorporate Trust Account laws.

NO DIESEL SALE IN ABU DHABI 

JULY 14

Abu Dhabi's state oil company Adnoc stopped diesel filling services for heavy-duty vehicles at pumps inside the capital after scores of trucks queuing up for cheaper fuel blocked streets in the city for more than a month.

ETIHAD BOOKS 205 PLANES 

JULY 15

The UAE hogged the limelight at the Farnborough International Airshow in the United Kingdom when Abu Dhabi-based Etihad Arways placed $43billion (Dh157bn) worth of orders and options for up to 205 aircraft and the soon-to-be-launched low cost carrier of Dubai, Fly Dubai said it would acquire 54 Boeing 737-800 (next-generations) narrow-bodied aircraft in a deal worth nearly $4bn.

THIRD OF DUBAI'S BUDGET FOR INFRASTRUCTURE

JULY 16

More than 33 per cent of Dubai's budget expenditure in 2009 will be earmarked for infrastructure projects, according to the head of the financial department. This follows the Dubai Economic Department issuing Notice No2 of 2008, which starts the process for drawing up the budget for 2009.

RAK FLOATS DH2BN BONDS 

JULY 16

The Government of Ras Al Khaimah has issued bonds worth Dh2bn to source funds from international financial institutions, said Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah. He said the emirate had been given an 'A' rating by international credit institutions. The emirate, he added, is preparing a new masterplan for both businesses and UAE residents.

DIESEL BLACK MARKET SHIFTS TO RURAL AREAS 

JULY 17

A burgeoning black market in diesel has shifted to remote areas along the Abu Dhabi border. Recent rises in diesel prices in Dubai have given rise to an illicit trade involving hundreds of truck drivers and racketeers benefiting from cheaper prices over the border.

NICKELODEON ARABIA TO GO ON AIR 

JULY 20

Nickelodeon Arabia, the Middle East's first Arabic-language, free-to-air channel dedicated to Arab children aged two to 14 years old, launches on Nilesat and Arabsat, delivering the best in children's multi-media entertainment. It hit the airwaves, kicking off with internationally-renowned animated series, Rugrats.

BUILDING MATERIALS INDEX LAUNCHED 

JULY 20

Abu Dhabi's Department of Planning and Economy issued a price index for basic building materials similar to the consumer price index issued recently to curb manipulation. The building materials price index includes 22 Articles, constituting 90 per cent basic construction materials. The index will help developers and contractors to be aware of price increases.

MUBADALA AND GE LAUNCH $8BN VENTURE 

JULY 23

Mubadala Development Company and General Electric formed an $8bn venture to invest in emerging markets in the Middle East and Africa. Each firm will contribute $4bn in equity over three years to the fund, aiming to reach $40bn in assets, the companies said. The fund may reach $40bn in assets in about a year to 18 months. GE will set up the fund's origination mechanisms initially. GE will also build a research centre in Abu Dhabi's new Masdar City among other ties.

EMAAR WRITES DOWN $45MN FOR ITS US UNIT

JULY 28

Emaar Properties wrote down $45m related to its United States unit in the second quarter, Al Mal Capital said, citing an analyst call.

FIRST AIRBUS A380 SUPER JUMBO ARRIVES 

JULY 30

The first of Emirates Airlines fleet of Airbus 380 superjumbos arrived, landing at the as-yet-un opened Terminal 3 of Dubai International Airport.

DOHA ROUND TALKS COLLAPSE 

JULY 30

Marathon talks on a new wave of trade liberalisation collapsed yesterday after nine days of intense but fruitless negotiations at the World Trade Organisation.

August

UAE LANDS IN WORLD'S TOP FIVE 

AUGUST 13

The UAE has jumped 23 places to notch the fourth position among the most active land markets worldwide in the first half of 2008, as global sales reached $64bn (Dh235bn) during the period, New York-based research firm Real Capital Anaytics said in its mid-year report. China topped the list followed by India and US. The UAE was placed fourth and Singapore fifth.

JUMEIRAH GROUP TO INCREASE PORTFOLIO

AUGUST 14

Jumeirah Group says it is on track to increasing its portfolio to 40 hotels across the world by 2010 and further increase it to 60 by 2012. Guy Crawford, Jumeirah Group CEO says the company is spreading its wings by venturing into academic institutions, restaurants, retails and spas. The Dubai-based hospitality group is also set to increase its workforce by four-fold from 11,000 to 50,000 in the next five years.

VISAS FOR AJMAN BUYERS 

AUGUST 14

Property buyers in Ajman will now be given residence visas after master developers gave a written assurance to that effect to protect developers in the emirate. The visas will be valid for one year and will have to be renewed annually.

PROBE TO IMPACT MARKETS 

AUGUST 17

The police investigation into alleged financial irregularities by top executives at mortgage lender Tamweel and developer Nakheel will cast a shroud of uncertainty tinged with gloom in the stock markets this week. The latest round follow a similar probe into Deyaar Development and Dubai Islamic Bank earlier this year. Meanwhile, Dubai has launched a major anti-corruption campaign against officials in big financial and real estate companies.

UAE WILL NOT INTRODUCE VAT UNTIL 2010

AUGUST 18

The UAE will not introduce value-added tax (VAT) until at least 2010, said a government official, countering reports that it will be implemented in early 2009. Replacing import tariffs with VAT will involve the creation of a "huge infrastructure" and may not be possible unless all GCC states adopt the system together, Saeed Khalifa Saeed Al Marri, Deputy Director-General of the Federal Customs Authority, said yesterday.

ZERO TOLERANCE AGAINST CORRUPTION

AUGUST 18

Dubai will take strict action against all acts of corruption and bribery wherever they occur in the emirate, whether they occur in the public or private sector, Esam Al Humaidan, Dubai's Public Prosecutor said yesterday. He said fighting corruption is at the top of the government's priorities.

EX-NAKHEEL STAFF FACES BRIDE CHARGES 

AUGUST 20

Nakheel's spokperson confirmed that authorities are interrogating a former staff on charges of bribery. The comment came after media reports said Karim Masaad, International Sales Manager for Nakheel, is being questioned by Dubai Public Prosecution amid a widening anti-corruption crackdown.

OFF-PLAN PROPERTY SALES REGISTRATION COMPULSORY 

AUGUST 25

Off-plan property sales in Dubai will have to be registered with the emirate's Land Department and developers will no longer be allowed to charge transfer fees on such sales, according to a new law (Law No 13 of 2008) promulgated yesterday. Any sale or other disposition that transfers or restricts title shall be void if not registered in the interim real estate register, the new law stipulates.

DEVELOPERS REMOVE VISA GUARANTEE FROM CONTRACTS 

AUGUST 26

Master developers in Dubai have removed the clause that guarantees a residence visa for property buyers from contracts they enter into with sub-developers. Emaar Properties has sent a notice to subdevelopers to hold processing of residence visas until further notice. However, master developers that replied to an Emirates Business questionnaire made it clear that they were just "facilitators" and the granting of residence visas was in the hands of the Department of Naturalisation and Residency.

BILLIONS WIPED OUT AS UAE STOCKS NOSEDIVE 

AUGUST 27

UAE markets have fallen so far so fast that the question on every investor's lip is: Have the indices now reached the rock bottom? Yesterday, margin calls triggered downward pressure on the markets; 10 stocks hit 52-week lows on a day of thin trading; and blue-chips bear the brunt as panic snowballs on bourses. The Dubai Financial Market lost 2.38 per cent of its value, or 114.66 points to close at 4706.25 points, close to its critical support levels.

SHEIKH MOHAMMED INAUGURATES NOOR DUBAI TV 

AUGUST 31

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, inaugurated Noor Dubai TV – a new television channel with a worldwide reach. The channel, owned by Arab Media Group, was beamed globally through Arabsat and Nilesat from the first day of the Holy Month of Ramadan.

September

BLACK SUNDAY 

SEPTEMBER 8

UAE investors saw almost Dh30 billion wiped from the value of their shares as both the Dubai and Abu Dhabi exchanges suffered savage losses amid a dire day's trading across the region. DFM plummeted to an 11-month low while ADX slipped to its worst finish since November last year.

BAN ON ATM CARD USE ABROAD 

SEPTEMBER 11

Some lenders operating in the country temporarily blocked international usage of ATM cards as a precautionary measure after the accounts of some customers were compromised. Banks also warned their customers to change their PIN due to the security breach.

LEHMAN FILES FOR BANKRUPTCY, BANK OF AMERICA SNAPS UP MERRILL LYNCH 

SEPTEMBER 16

Lehman Brothers filed for bankruptcy while Bank of America snapped up Merrill Lynch for $50 billion (Dh183.65bn) in a stunning reshaping of America's financial landscape that sent global financial markets reeling.

LEHMAN BROTHERS SUSPENDED IN DUBAI 

SEPTEMBER 17

The Dubai Financial Services Authority said it has precluded Lehman Brothers' branch in DIFC from conducting business while the Dubai Mercantile Exchange said it has suspended the membership of Lehman Brothers' Dubai unit.

TALKS ON SALE OF EMAAR FINANCIAL SERVICES FAIL

SEPTEMBER 17

Negotiations between Amlak Finance and Egypt-based Pharos Holding for Financial Investments to sell off Emaar Financial Services failed. As a result Emaar Financial Services appointed Jassim Ben Hendi as the new chief operating officer to study alternative plans for the company.

DUBAI METRO TESTS LAUNCHED

SEPTEMBER 21

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the trial phase of the Metro on an 11-kilometre experimental track between Jebel Ali and Ibn Battuta terminals. Sheikh Mohammed also inaugurated the Wi-Fi service that will cover the Green and Red lines.

IMF PROPOSES REVISED ANTI-LAUNDERING LAW FOR THE UAE 

SEPTEMBER 22

The UAE may need to strengthen its task unit entrusted with fighting dirty money as part of overall reforms in its anti-laundering law with the aim of covering all sectors and improving efficiency, the IMF said. It noted that the rapid expansion in the country's free zones and an influx of foreign capital into these zones pose another challenge to the UAE's anti-money laundering law that was enforced more than seven years ago.

UAE MARKETS REBOUND SHARPLY 

SEPTEMBER 22

The UAE stock exchanges surged more than 600 points following the US government's $700bn (Dh2.57bn) rescue of its faltering finance sector. After global markets rallied on Friday, UAE equities followed suit with the Dubai Financial Market surging 9.9 per cent to claim its largest one-day gain since January, while the Abu Dhabi Securities Exchange added 5.9 per cent.

DUBAI VIES TO BE THE WORLD'S ISLAMIC FINANCE CENTRE 

SEPTEMBER 23

Dubai Group, a conglomerate of seven private financial institutions, is banking on Islamic finance for its expansion plans. Soud Ba'alawy, Dubai Group's Executive Chairman, said the group's Shariah-compliant subsidiaries – Dubai Banking Group and Noor Investment Group – are in aggressive expansion mode in the Islamic banking arena.

EMAAR WINS $1.2BN COMPENSATION CASE 

SEPTEMBER 23

Emaar Properties won a court order involving $1.2bn (Dh4.4bn) claimed by a Saudi plaintiff. The arbitrators in Saudi Arabia ruled in favour of Emaar Properties in a case filed against the company by Jadawel International. All claims by Jadawel International were rejected by the arbitrators.

CAPITAL MAY CUT RENT CAP 

SEPTEMBER 24

A proposal to reduce the annual rent cap from five per cent to three per cent in the capital is being studied by the Abu Dhabi Executive Council (Adec). A senior official revealed the Abu Dhabi Council for Economic Development (ADCED) has submitted a detailed study to the Adec on the harmful effects of high rents, especially in terms of growing inflation and decreasing foreign investments.

DUBAISAT1 TO BLAST OFF LATER THIS YEAR 

SEPTEMBER 24

The UAE's eye in the sky is ready for launch, it was revealed. DubaiSat1 has been developed by Satrec Initiative in South Korea with the participation of UAE engineers from the Emirates Institute for Advanced Science and Technology (EIAST).

GOLDMAN SACHS GETS $5BN BUFFET BOOST AMID BAIL-OUT WORRIES 

SEPTEMBER 25

Warren Buffet's $5bn (Dh18.36bn) investment in Goldman Sachs brought good news to global markets worried that architects of the $700bn bail-out would not be able to convince US lawmakers to move swiftly. Buffet's Berkshire Hatchaway surprised markets with a deal that could give it a stake of up to nine per cent in Goldman.

DFSA FINES SHUAA DH3.5 MILLION FOR 'MARKET MANIPULATION'

SEPTEMBER 25

Shuaa Capital has been fined a record $950,000 (Dh3.5 million) for alleged market manipulation on the Dubai International Financial Exchange. According to Dubai Financial Services Authority (DFSA), Shuaa attempted to bolster DP World's share price on March 31 – the final day of Shuaa's financial year – by making a series of late bids that were well above the market price.

US DEAL TO CREATE $700BN FUND TO BAIL OUT AILING FIRMS 

SEPTEMBER 29

Congressional negotiators and the Bush administration's top Treasury officials made a breakthrough and were set to sign off on a deal to create a $700bn (Dh2.57 trillion) government fund to buy bad debt from ailing banks in a bid to stem a credit crisis threatening the global economy.

ZERO COMMISSION FOR TRAVEL AGENTS 

SEPTEMBER 30

All travel agents operating in the UAE will start working under a zero-commission system. Until now, agents have received commission of seven per cent of the basic fare from airlines for each flight booked. But under the new arrangements, they will charge passengers a service charge equal to seven per cent of the total price of each booking.