Daily Personal Finance Insights – High risk
SME too high risk for bank loans
The Dubai Chamber of Commerce and Industry indicates total bank lending to SMEs (small and medium enterprises) in the UAE is only around 3.85% of total business bank loans, despite their high contribution to GDP and employment. In spite of their contribution to the economy, SMEs are considered high risk as the discontinuation levels are very high.
Investing - equities or bonds?
Bonds are becoming the stock pickers’ forecast for the next bubble. Bill Gross of Pimco, the largest global bond broker, is predicting the demise of bonds and rise of equities. But tread cautiously, as equities are not for the faint hearted. Patience and understanding value is paramount, especially with the volatility of the Dubai and Abu Dhabi bourse. Investors are advised to keep an eye on international markets.
UAE economic decline by 2020
A recent study The Economist Magazine Intelligence Briefing predicts a gloomy outlook for Gulf oil revenue from 2020 onwards. As new green technology takes a firmer route in the global economy The Economist predicts economic decline in the UAE unless it can significantly decrease its reliance on oil revenues. However Sami Al Qamzi, director-general of the Department of Economic Development, has said economic growth in the Emirate is steady and heading towards sustainability.
Wages going up
A new Salary Guide from recruiting specialist Robert Half indicates salaries in the UAE will rise by 5.3% in 2013. The guide indicates technology and finance related jobs are the highest in demand.
Twenty-two people were killed in a road traffic accident in Al-Ain. Bad driving is the number-one topic that Dubai residents vent about online. The per-capita death toll on UAE roads is among the highest in the world, according to the World Health Organization.
On a brighter note
The Nabadat initiative created by Dubai Health Authority (DHA) and the Mohammed bin Rashid Charity and Humanitarian Establishment which offers heart-related treatment to Emiratis, expatriates and foreigners who either cannot afford it or do not have the treatment readily available, helped 21 people undergo successful operations last month. More than 300 people have been treated since Nabadat launched in 2007, the charity having covered costs of approximately Dhs 360,000 for each patient.