Investor tips, low borrowing rates and free calls
Cost of borrowing
Entreprenuers looking for loan opportunities should bide their time and wait until the new UAE Credit Bureau is fully established. This is because once the credit reporting system is in full swing, the cost of borrowing, experts estimate, will hopefully fall by up to 30 %. The new bureau consists of two working groups, including 12 banks, the Central Bank and the UAE Banks Federation, which is the industry lobby group. Over the next 24 months, the Bureau will compile a database of individual borrowers and commercial companies operating in the local marketplace. Ultimately, the plan is that customers will be able to see their credit rating and shop around for better loan prices from the banks. Read more here.
Etisalat have announced that all eLife and standalone landline subscribers are to enjoy free national calls across the UAE from June 1. Previously, Etisalat customers enjoyed free local calls – within their own emirate – but now there will be zero charges on nationwide calls. For those with eLife, the quality of call will also be better, as the provider has introduced the region’s first High Definition voice service for landlines. So, once your monthly line rental is paid, you’re set for the month. The free calls only apply to calls made between landlines. Find out more.
Investor highs and lows
If the worst time to buy shares is when everyone else is snapping them up, how can beginner investors avoid buying into price highs, but not wasting cash on low cost stocks? Apparently, simplest yardstick to assess the possible future value, is to look at the dividend yield – the income you received from your shares as a percentage of the share price. This figure allows you to compare yield on the share with other assets. The earnings yield and the p/e ratio are also indicators to observe. For more, read on.