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In simple terms, inflation rates measure what has happened to consumer prices over the latest 12-month period. But what increases inflation? Well, economic growth is generally followed by a stronger and growing labor market, which means that unemployment is down and wages are increasing. This increases consumer’s disposable income and increases the cost of wages for companies. Both of those factors push prices up for consumers, which in turn, increases inflation rates. This is where interest rates, inflation’s best friend, comes into play. Shortly after inflation increases, interest rates begin to increase to control inflation (generally to 2%). Governments increase interest rates to incentivize people to save a larger chunk of their disposable income and decrease discretionary spending, in turn, decreasing consumer prices.

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The UAE and Saudi governments have finally implemented the Value Added Tax (VAT) system on the 1st of 2018, after more than year of planning. Many business and individuals are still struggling to grasp how to handle this new tax system. The VAT was set at 5% in both countries and is expected to stay at that rate. This rate applies to almost every good or service one purchases daily, with the exception of certain specified items stated by each government.

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Artificial intelligence is starting to have a great impact on the transportation sector worldwide. Self-balancing electric flying vehicles are pushing the future means of transportation to a whole new level. The first certified multicopter was tested in Bruchsal, Germany last year. Since then, different countries and companies around the world have shown interest in this new technology.

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The Gulf Corporation Council (GCC) countries have come together to reach an agreement regarding implementing the VAT (Value Added Tax) system by the end of 2018. This agreement may come as a surprise to many people, since the GCC region was known for its tax-free perks and massive income from oil. However, the circumstances now prove to be otherwise. The plunge of oil prices since last year has immensely reduced government revenues, making it a necessity for the GCC countries to find new sources of revenue and diversify their portfolio.

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On Sunday, NASA issued a press release announcing they had just signed an agreement with the United Arab Emirates. The agreement signifies cooperation between NASA and the UAE Space Agency in aeronautics research, space exploration, and the peaceful use and habitation of outer space. Other objectives covered by the agreement include collaboration in Earth and space science research, the establishment of educational programs, and outreach to relate the global benefits of space travel. Possible future cooperative projects include the joint use of certain airspace technologies, ground-based research facilities, and antennas. Above all, the agreement seeks to strengthen the diplomatic and economic relationships between the United States and the United Arab Emirates.

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Dubai has been one of the fastest growing economies in the past 3 decades, if not the fastest. Dubai has been all over the news and social media for quite some time now, and everyone is amused by its dramatic changes. It distinguishes itself with its ultramodern architecture, skyscrapers, and luxurious shopping. It’s also known for its indoor skiing, housing the tallest skyscraper in the world, “Burj Khaleefa”, and building man-made islands such as the “Palm Jumeirah”.

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It has been almost a year since the expiry of the 75-year-old concession of Abu Dhabi with western oil companies. Having been working as service providers and not getting paid in oil this past year, the Western oil companies are among the hopefuls to win the bidding for Abu Dhabi’s new oil concession. These companies are hoping to keep their stakes in the Persian Gulf, which is the one of the few major oil-producing areas that allows international companies to hold direct shares. Now they are worried about losing their stakes because of the rising interest of Asian oil companies in this lucrative oil business.

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As Brazil is busy finishing the last construction for the 2014 World Cup, Qatar, the host of the 2022 World Cup, has started its infrastructure improvement plan to welcome its guests from all over the world. This preparation has really brought Qatar into the eyes of investors with high expectations for economic gains. Qatar is not alone, as we see millions of “host money” from foreign investors has pushed the UAE’s stock market also to a new high. This blog will give you the overviews of Qatar’s and the UAE’s economy in the recent years and will explain the reason why Qatar and the UAE have experienced growth in foreign investment.

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For those of us who drive, we are well aware of how unavoidable major traffic can be. While en route to work or on a road trip, it can be a nuisance to have your estimated time of arrival continually pushed back. But can you imagine consistently attempting to travel somewhere, while living in a city with congested roadways? In Dubai, this is a daily reality. As an affluent city in the United Arab Emirates, the number of cars has grown so much that traffic is a rising issue for the country. Orthodox methods to combating the problem such as increasing prices of parking, fuel, and insurance have proved fruitless so government leaders are seeking a new strategy: putting in place an income threshold for the ownership of vehicles.

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Generating international sales is a difficult task for many small businesses around the world. However, there are a countless number of strategies and opportunities that allow businesses of all sizes to accomplish this challenging feat. In fact, one of the best ways to drive intentional sales for your business is to attend international trade shows where you can display your product to interested buyers. The video posted below by the United States Department of Commerce uses the Health Show in Dubai to explain the benefits of attending an international trade show!

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The flash of Dubai has captivated the world for the past decade.  But thoughts of skyscrapers built on sand with borrowed cash rather than a concrete future has been incepted into the minds of the world.  The opulent structures have created a city within a city – an oasis surrounded by relative poverty.  Consequences of such lifestyles and myopic philosophies are not latent in nature; they may be apparent tomorrow, next year, and even for the next generation.  While the world outlook for 2013 is positive in many ways, it would be arrogant to assume all liabilities will be paid by the end of this year.

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Dubai was always seen as the future and had unimaginable developments throughout the emirate. After tough economic times Dubai had temporarily stopped many of its large glamorous projects. Why is it then that Nigeria has invested US$52.2 million into the emirate’s property market in the first six months of this year? Without ever stepping out of Dubai airport Central Bank of Nigeria official, Osita Nwanisobi, was convinced to buy a flat in Dubai. He believes Dubai is a guaranteed return on investment and sees it as a world center.

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For centuries, Dubai has served as a key crossroads for global trade.  The convenient location of the United Arab Emirates between Europe, Asia, and Africa has positioned this growing city to serve as a major logistical intermediary between many foreign markets.  With the development of emerging markets such as China and India, there is a growing opportunity for Dubai to expand its logistical dominance in the modern world economy.  The construction of Al Maktoum International Airport, which will become the largest airport in the world, signifies Dubai’s commitment to this growth strategy. 

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Nowadays many companies are becoming more environmentally conscious and are looking for new business practices that support sustainability. A company called Neutral Fuels in the United Arab Emirates has developed an innovating process that promotes sustainable development while also generating a healthy profit. Neutral Fuels converts used vegetable and cooking oil from local fast food restaurants to biodiesel so that it can be used to fuel trucks. This waste conversion process has had a tremendous impact on the environment and oil production in the United Arab Emirates.

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There are many markets for U.S. goods in the Middle East and North Africa but the largest single market happens to be relatively new. Formed in the 1970s, the United Arab Emirates is the largest single market for U.S. goods in the region and the 19th largest market globally. The United Arab Emirates is a federation composed of seven states located on the Arabian peninsula. As new, large-scale infrastructure projects continue to develop, this market will remain a prominent source of opportunities for United States exporters.

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Dubai, one of the seven emirates of the United Arab Emirates, faces major environmental problems after years of rapid urbanization and business growth. Located in the desert south of the Persian Gulf, Dubai’s biggest challenge is providing fresh water to its residents. However, the city has many other problems including waste management and sewage treatment operations. Despite being situated on vast oil reserves, the region is also running low on energy sources to support its lifestyle. On top of these complications, the United Arab Emirates (UAE) is preparing for a population boom this upcoming decade. Therefore, concepts of sustainability and environmental issues are becoming very important to businesses and citizens of Dubai.

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As globalEDGE has discussed in the previous posts for this month’s blog series, not only are frontier markets growing extremely fast, they also have a lot of systematic risks. These risks can range from extremely prohibitive government regulations to a communist run government that feels it’s appropriate to expropriate private assets when it deems necessary. To transition to a stable growing economy these countries must remove these risks and increase its population’s education and consumption. These will create sustainable investment opportunities and the increase in consumer spending will continue to fuel economic growth.

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Trends in the Aerospace and Defense Industry have been shifting lately; what was once a primarily domestic industry has started to become global in nature. As highly populated nations such as China and India become more open to global markets, international suppliers will seek to fill their demands. What are some of the things we can expect to see from the global Aerospace and Defense market in the near future?

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The Burj Dubai Towers (now renamed the Burj Khalifa) opened for business this Monday after about six years of construction. At 2,727 feet (828 meters), the tower is the tallest man-made structure in the world, beating out the KVLY-TV mast in Blanchard, North Dakota, United States and the Guangzhou TV & Sightseeing Tower in Guangzhou, China (which was topped-out in 2009 at 610 meters). Check out this video from Al Jazeera for an interview with Bill Baker, the chief structural engineer at designing firm Skidmore, Owings & Merrill LLP.

 

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In October of 2008, Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum formally established Al Nassma - a chocolate producing company. It is not just another chocolate brand however. What distinguishes it from other brands is the fact that Al Nassma chocolate is made with camels' milk and is the first of its kind.

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The domination of English literature and jounalism did not stop users of other languages from contributing to the diversity of global communication. Arabs are a good example of this. Taking advantage of wealth from oil export, they are making efforts to ahieve the popularity of Arabic literature worldwide. For example, on Oct 15th, Bloomsbury announced at the Frankfurt Book Fair that it will launch an Arabic Language publishing house in Qatar. Another multimedia centre is going to be stationed in Abu Dhabi, the United Arab Emirates' capital. The purpose of these centres are to train and develop Arabic talent in jounalism, publishing, or broadcasting, who can hopefully build to the success of Egypt's Alaa Al-Aswany and Afganistan-Born Khaled Hosseini; both of them have been international bestsellers. In fact, lots of western readers have interest in Arabic literature, and the recent promotions of Arabic literature are to fulfill "the desire of ordinary people in the west and in the arab world to engage with each other."

Full article can be found here www.guardian.co.uk/world/2008/oct/16/middleeast-germany.

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Amidst fears of a global slump, and the assumption that the Middle East will not be immune to it, the property developers of Dubai, located in the United Arab Emirates, continue to build, build, and build some more. As businessmen in the world’s hottest real estate market, who can blame them? Dubai’s annual growth rate has been a steady-near 18% since 2001, and it doesn’t seem to be slowing down anytime soon.