The new system has the capacity to monitor the prices of 200 commodities on a daily basis.

The Ministry has recently undertaken a pilot phase with some commodities and the results were generalized for other goods.

H.E Al Mansoori said the new system contributes to the stabilisation of consumer prices in the UAE and the continued flow of commodities and predict crises that may occur in the future at both local and global levels, as well as provide policy makers and analysts with the latest available information on all aspects of the lack of supply quantities in order to take the appropriate decision.

Commenting on the implementation plan of the new system, Al Mansoori said that the Ministry of Economy developed an integrated plan to implement the system smoothly and effectively, taking into account the future plans to expand the system and the introduce of new commodities.

Al Mansoori stressed the importance of this system that guide consumers to cheaper outlets, pointing out that these outlets includes more than 80% of the retail market in the country. He stressed that the system is linked with the Food and Agriculture Organisation of the United Nations (FAO), to identify global commodity prices to find out any possible rise.

He explained that most goods that are monitored according to the system are: rice, wheat, poultry, sugar, milk, tea, meat, eggs, oils and fish », pointing out that the outlets that are monitored include cooperative societies in the UAE and its branches, Lulu Hypermarket, Carrefour, Spinneys.

Al Mansoori said the Electronic System for Goods Monitoring is proceeding according to the induction number of common goods, or what is known (bar code) for each commodity either local or global, as the system allows access on the item at retail outlets in the UAE, and find out their prices and quantities received from  customs, or the volume of production locally, and the proportion of the quantities that were sold, adding that the system will provide on weekly basis the prices of basic food commodities globally, and the wholesale price, according to the import bills, which are submitted to the customs ports permanently.

The MoU affirms the RTA’s need for up to date satellite images that show the progress of their infrastructure work on Dubai streets and roads.

The MoU also aims at reinforcing the level of cooperation among specialised local authorities to serve the public interest of the Government of Dubai.

The MoU was signed by Salem Humaid Al-Marri, the Head of the Project Management and Space Missions Department of EIAST, and Abdulla Al Madani, the CEO of Corporate Support Services at the RTA

Al-Marri said: “This MoU is of extreme importance to us as it supports our strategic approach to serve the RTA by helping them improve the infrastructure work done on Dubai roads, and it also highlights the common interests of both organisations to document the different phases of road enhancements through satellite images.”

Al-Marri added: “The infrastructure sector is experiencing a huge leap in development from one level to another in a very short period of time, thus we need to strengthen cooperation among all parties concerned in this vital industry.

“The RTA is pleased to sign this agreement with EIAST, which will inevitably strengthen the geographic information systems mechanism. The agreement will play a vital role in enhancing the efficiency of our road projects through the provision of high quality data and satellite images that are periodically updated. Our joint efforts with EIAST will also promote a culture of creativity and innovation as well as better services to the community” said Abdulla Al Madani, the CEO of Corporate Support Services at the RTA.

Both EIAST and the RTA are in pursuit of various goals through this MoU, most important of which are exploiting the mutual benefit of using satellite images to save resources, strengthening communication between the parties to serve their common interests in the field of developing navigation systems, and exchanging data and expertise in this respect.

EIAST had successfully launched DubaiSat-1, the UAE’s first Earth Observation Satellite in July 2009, and since then the satellite has been transmitting images that had become of great use in several applications.

Its relatively high spatial resolution complements existing Geographic Information System (GIS) databases and enables more efficient monitoring and prediction of natural events such as sandstorm observation, fog forecasts, and determining the quality of water in the area.

16 Emarati engineers from EIAST are currently preparing to launch DubaiSat-2 during the second half of this year. This second satellite is entirely designed, developed, tested and manufactured by EIAST and its strategic partner Satrec Initiative of South Korea, and is capable of producing high quality image data.

DMCC Tradeflow is an electronic system that brings together all parties involved in inventory based financing. Through the platform, owners of goods stored in rated warehouses in the UAE can request warehouse keepers to issue “Tradeflow Warrants” which represent the ownership of their goods. These warrants can be used by the owners to pledge beneficial ownership or transfer title of the stored goods to financiers as collateral in return for working capital.

The new platform has been designed following feedback from DMCC’s commodity members, regional banking institutions, UAE’s warehouse operators and the international marketplace. While building on the basic principles and standardised contractual framework of the GMR, the changes put into place bring increased security features, enhanced user experience, and full audit trails of all user actions to the web-based service.

All features of the platform have been developed according to international trade finance and banking best practices, in addition to facilitating financial institutions’ compliance with Basel III stipulations. As a direct result of demands from financiers from around the world, DMCC Tradeflow also introduced for the first time, a Warehouse Inspection and Ratings Programme for the international commodities industry.

Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “In 2004, DMCC launched the multi-award winning GMR platform, meeting the needs of the global trade finance market. The enhanced platform, named DMCC Tradeflow, builds on our impressive track record and further delivers products and services to facilitate the global commodities trade. We expect to witness increased access to trade finance for not only DMCC licensed companies but for commodity traders throughout the world who use Dubai as a trading hub.”

The new Warehouse Inspection & Ratings Programme benchmarks warehouses against a 5-star rating model based on an extensive set of 400 unique criteria, allowing financiers and owners access to much greater transparency of storage risk. Global logistics service providers Steinweg Sharaf Fze, RHS Logistics and RSA Logistics have already been issued with a Warehouse Rating Certificate. All types of warehouses from all levels can participate in the rating system as soon as they are registered on the DMCC Tradeflow service.

Paul Boots, Director, DMCC Tradeflow, added: “Given the increasing demand for global liquidity, a structured platform that facilitates financiers to lend with confidence in an environment where risks can be identified and mitigated is essential to ensuring the continued flow of global trade. With DMCC Tradeflow we provide just that.”

The agreement was signed by H.E. Ahmed Bin Humaidan, Director General of Dubai eGovernment, and H.E. Dr. Eng. Ali Mohamed Al Khouri, Emirates ID Director General, at the Dubai eGovernment headquarters at HH Dubai Ruler’s Court. Under the terms of the agreement, Dubai eGovernment commits itself to introducing the required central applications for integrating with the infrastructure of the digital identity applications so as to optimise usage of the Population Register and complete the electronic linkage between EIDA and all Dubai government entities.

For its part, EIDA will provide the necessary technological applications to read the data stored in the ID card together with the infrastructure for the digital identity applications and unified identity management in order to verify the identity of clients. EIDA also plans to partner with Dubai eGovernment in developing the concept and general framework for the digital ID project at the Dubai Government level.

The two parties have agreed to employ all available resources to achieve the common strategic goals, particularly the improvement of operational performance, simplification of government procedures, development of services provided to customers, and the creation of effective communication channels to support government integration.

Ahmed Bin Humaidan was positive about the agreement signed with EIDA, and said: “The signing of this agreement is in line with our commitment to actively contribute to the objectives of government integration and the electronic transformation of government systems across Dubai. These aim to realise the vision and directives of H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. We support the digital identity project in view of its positive impact on Dubai’s electronic transformation. We are committed, in the framework of our partnership with EIDA, to implement a series of relevant initiatives and joint ventures, including integrating infrastructure for the verification of the identity card and handling this system.”

Meanwhile, Al Khouri affirmed that signing this agreement coincides with the gradual conversion towards making the ID card a key identification instrument for transactions and services provided by the government and private sector organizations. “This strategic partnership reflects our belief in the use of advanced technologies in improving government performance, considering that the population register and ID card project is part of the UAE’s strategy to become one of the five best governments in the world.”

Commending Dubai eGovernment’s role in easing government transactions and leading the eGovernance process in Dubai, Al Khouri said that the agreement would be beneficial in implementing the strategic objectives of government entities and unifying their efforts at upgrading customer service.

The two parties affirmed their full commitment to pursuing joint ventures and research, including an assessment of the optimum use of the identity system, its data potential for use by Dubai government services and its application for integration with government eServices in Dubai.

Built at a cost of AED 750 million (USD 204.21 million), the new phase comprises 3.5 million square feet of warehouses and retail showrooms equipped with back storage, featuring units measuring 5,000 and 10,000 square feet.

These new facilities double the present size of the current storage facilities, and along with an additional three million square feet of open storage yards that are equipped with asphalted tarmacs and round-the-clock security, bring the aggregate amount of current storage at the light to medium industrial destination to ten million square feet – the largest-of-its-kind under one area in the UAE.

Dubai Industrial City now features a total of 627 eight-meter high warehouses, and 122 retail showrooms with amenities for temperature-controlled and chemical storage, workshops for light industrial activities and machinery operation, in addition to warehouses for general-use.

Abdulla Belhoul, Managing Director, Dubai Industrial City, said: “There is an increasing demand for quality and specialized storage facilities in the market, with a heightened emphasis on health and safety. The launch of the second phase of warehouses at Dubai Industrial City addresses such needs, and will further consolidate Dubai’s position as the current logistics hub in the UAE and the Middle East. It will also spur growth in the nation’s industrial sector, which has grown by approximately 11% in 2011, making it the second largest contributor to the UAE’s economy after the hydrocarbon sector.”

Underlining the health and safety dimension of the warehouses, Belhoul added: “The warehouses are engineered to respond to the sophisticated industrial and safety needs of the diverse light and medium industrial units operating at Dubai Industrial City such as food and beverage, machinery and equipment, as well as base metals and chemicals. The units are subjected to periodic monitoring and supervision by Dubai Industrial City’s Health, Safety and Environment Department to ensure full compliance.”

Located on Emirates Road near the new Al Maktoum International Airport, Dubai Industrial City offers a strategic advantage due to its proximity to major highways and the Jebel Ali Port. Covering an area of 560 million square feet (55 square kilometers), it offers a dedicated manufacturing destination comprising six industrial clusters – food and beverage, base metal, mineral products, chemicals, transport equipment and parts and machinery and mechanical equipment.

The meeting was participated by key entities, including the representatives from the Land and Property Departments, UAE municipalities; Abu Dhabi Conformity and Quality Council; UAE Society of Engineers and Contractors Association; and other concerned parties in the country.

The regulation, which takes effect on 11^th November 2011, mandates companies operating in the UAE to stop using Imperial, US Customary Units, and other system of units other than the SI, in their official and commercial activities.

H.E. Eng. Mohammad Saleh Badri, Acting Director General, ESMA, said: “This workshop complements our extensive efforts to implement the decision to adopt the national system of units, as per Cabinet’s Decree No. 31 of 2006, which states in Article VIII that the SI units is the exclusive basis of the legal units of measurement in the country.

“ESMA has been coordinating and conducting meetings with the concerned authorities, especially with the land and property departments and UAE municipalities, on the replacement of foot as a unit of measurement We have distributed questionnaires to those bodies to study the units used in their transactions and the results showed that there is a serious need to standardise the unit of measurements in the UAE.”

Participants recognised the importance of this federal decision, which aims to support the national economy by unifying the measurement units on the national level, in line with international practices. They also openly discussed the challenges in the implementation of the regulation.

According to Eng. Mohammed Al Mulla, Director of Metrology Department, ESMA circulated this decision to the concerned authorities in the country after it was published in the Official Gazette in its issue No. 523 dated 29^th May 2011.

Eng. Al Mulla commended the cooperation of ESMA’s key partners and their positive response in this regard, and stressed that the success of implementing such decision is achieved through concerted efforts of all parties concerned.

Eng. Al Mulla added: “Going forward, ESMA will coordinate with local and federal agencies for the prohibition of using illegal units of measurement, on various products.

The regulation to replace feet and yards with meter effective 11/11/11 follows the UAE’s introduction of litre instead of gallon as unit of fuel from January 1^st, this year. All oil companies and corporations operating in the UAE have since been using litre as a unit of measurement for the fuel, instead of the gallon.

CFOs across Europe, US, and Asia are looking to alternatives like teleconferencing, reducing business travels, using more efficient shipping methods and increasing prices on products and services. These findings are included in the most recent Duke University/CFO Magazine Global Business Outlook Survey.

Eighty percent of chief financial officers in the U.S. say the high price of oil is negatively affecting their firms, with 61% describing the effects as “significant.”  Among European companies, 71% of CFOs say they have been negatively affected by high oil prices, with even higher responses in Asia (78%) and China (88%).

“We may be reaching a tipping point on the cost of traditional fuels,” said John Graham, professor of finance at Duke’s Fuqua School of Business and director of the survey. “We’re seeing more companies embrace green initiatives and position themselves to become less reliant on oil in the future.”

CFOs in the U.S. have already instituted or plan to institute a number of policies to manage higher oil prices: 53% say they are increasing telecommuting/teleconferencing; 5% are improving facilities management, including reduced lighting and improvements to Heating, Ventilation and Air Conditioning (HVAC) systems; 48% are reducing business travel; and 39% are turning to more efficient shipping methods such as consolidating shipments.

Forty-four percent of U.S. CFOs say their companies have already passed-on the fuel price increases to consumers by raising prices, or have made plans to do so.

European CFOs are increasing telecommuting/teleconferencing (60% of companies), reducing business travel (49%) and raising prices on products and services (44%).

In Asia, 72% of firms have reduced or plan to reduce business travel, 76% are increasing the use of teleconferencing/telecommuting and 73% are improving facilities management. Consumers in Asia will likely feel the pinch from higher fuel prices; 58% of CFOs say their firms will pass on the increased costs.

“While some companies are hesitant to raise prices due to the relatively weak economy, a substantial number are deciding to add fuel surcharges, meaning customers will have to absorb these increased costs,” said Kate O’Sullivan, deputy editor at CFO Magazine.

Chinese CFOs say their companies are using more efficient production processes (61%) and improving facility management (60%) to manage high oil prices. Fifty-three percent are using more efficient shipping methods, and 55% are covering higher fuel prices by raising prices.

Complete survey details and data tables are available at http://www.cfosurvey.org.

Established as per the Ministerial Decree No.788 by the Ministry of Labour (MOL) in September 2009, the process requires all companies registered under the MOL to pay their employee salaries through the system.

The WPS covers all sectors, as registered with the MOL and benefits different categories of labour. It is an electronic salary transfer system that allows institutions to pay workers’ wage via banks, exchange houses, and financial institutions approved and authorised to provide the service.

The following were the objectives of WPS when it was setup:

- Assuring the commitment of UAE to protect worker’s wages

- Taking protective and pro-active measures to reduce labour disputes pertaining to wages

- Worker salaries to be routed through the banking system in a systematic and orderly manner

- Ensure salaries are paid on time

- Declared salaries and other monetary allowances (as per the labour contract) are paid correctly by their employers

- Salaries are received through accredited, secure and efficient channels, i.e., bank account, prepaid/payroll card, over-the-counter and cash collection at exchange houses

WPS involves the following parties:

- Workers: Each and every worker in the private sector and who has a labour card issued by the MOL.

- Employers: Company or institutions registered with the MOL. Government bodies are exempt from WPS.

- Banks: The Financial Institutions which the employer has a bank account with

- Agent: Any bank, exchange house, or financial institution, approved by the Central Bank to offer WPS

Since its implementation, we have seen close to 2.7 million workers and 130,000 employers reaping the benefits of WPS. The chart below, from the Central Bank, suggests the extra-ordinary growth of WPS clients since its inception.

Impact of WPS

In a way, WPS has created a great opportunity for banks and financial institutions to engage their corporate clients in delivering a more efficient and reliable salary transfer service. Gone are the days of workers being at the mercy of their employers with regards to receiving correct salaries at the prescribed salary date. WPS has ensured that workers are paid the correct salaries at the proper time, and any violation by the employer entail immediate suspension of their privileges with the Ministry.

Defaulting companies can be easily identified, and sanctions are simple and yet quite harsh. Defaulting companies are prevented from obtaining new work permits, and this is a good incentive for the company to comply with the WPS.

Another consequence of the WPS is that now disclosures need to be made to the MOL, impacting on the ability of local companies to sponsor the employees of international businesses that do not have a corporate presence in the UAE.

While WPS offers wage protection to all employees, the unskilled workers are the ones particularly vulnerable today. They need special attention, but there are some difficulties experienced in extending the WPS to this sector.

While some banks have shown unwillingness to open accounts for low income workers, it has created opportunities for others to introduce payroll cards allowing workers to receive cash through any UAE-based banks’ ATM machines.

Some banks have invested in allowing corporate to upload the salary file into their electronic banking platforms for further processing and transmission to the Central Bank. Others have tied-up with exchange houses and third party card providers and bundled end-to-end solutions intended for both the corporate and its employees.

WPS process

The following processes are involved:

- Company to open an account with one of the banks for this purpose. They can use their existing bankers, if they have one.

- There should be an agreement between the company and the agent to provide this service for them. Commercial terms are decided and agreed on a bilateral basis.

- The company prepares the wages list and sends it to the bank for onwards processing by the WPS. The delivery channel used can vary but the agent needs to forward an electronic file to the WPS. The MOL provides companies with a tool to create salary files (SIF), which can be used by them to be sent to their respective banks for salary distribution.

- The WPS validates the wage related details with the information registered with the MOL.

- Once validated, these wages are then approved for processing by the banks.

Wage protection System

Challenges for the banks

Banks are facing stiff competition with exchange houses and third party card providers in the following areas:

- Exchange houses and third party card providers do not need an employee account to be opened for salary transfers

- Times in processing transactions relative to exchange house and third party card providers

- Cross sell opportunities on the employee accounts

Key differentiators in the WPS offerings today among the corporate clients:

- Fast and secure way of transmitting the SIF, normally achieved through electronic banking

- Convenience for staff in receiving their salaries, i.e., through payroll card, cash delivery at the labour camps, worksites and accounts

- Potential tie-ups or value-added services relating to remittance services, utility bill payments, over-the-counter shopping

Benefits of the ADCB proposition

- We currently process around 2000 SIF files serving around distinct 1600 customers. ADCB has a success rate of greater than 92% in terms of processing the SIF files. Over 70% is serving our SME client base.

- Fully automated systems to process both SIF and PAF files.

- Customer uploads SIF file through a secured hard token based login and upload files which are then processed using straight through process mechanism. Alerts are generated and transmitted to customers email inbox for various activities done on the file.

- ADCB also has a dedicated service desk for WPS customer to offer them guidance and information for the processing of WPS payments.

Isaac Thomas, Vice President and Heaad of Cash Management, ADCB

WPS is here to stay and will evolve into a more robust mechanism to ensure complete transparency and automation of employee rewards and entitlements for all labour categories. SME companies, given their staff size and efficiency needs, cannot afford to have multiple parties for their banking and WPS needs, and banks on their part, cannot assume that WPS is a trivial requirement. In that sense, both banks and these companies need to work together on a win-win situation with regards to the WPS business.

About

Isaac Thomas is the Vice President and Head of Cash Management, ADCB and has over 21 years of banking experience, primarily in transaction banking and banking technology. In his most recent assignment, spanning two years, Isaac was heading the MENA regional corporate sales for cash management and trade at Deutsche Bank in Dubai. Prior to this he was with Standard Chartered Bank in Singapore and Dubai with the transaction banking team.

Isaac has experience managing clients in a service and sales capacity and has set up and managed premier client service teams at Standard Chartered and Deutsche Bank during his assignments there. He has a Masters in Electrical Engineering and MBA in Finance from the US.

The initiative will enable all stakeholders associated with logistics and related sectors come to work together and strengthen the competitiveness of Dubai’s logistics.

Announcing the launch of the Dubai Logistics Cluster Platform, His Excellency Mr Sami Al Qamzi, Director General, DED, said: “At DED, we believe in the power of tangible action, and today’s Dubai Logistics Cluster Platform launch will mark a new chapter in public private partnerships in Dubai, more so in driving logistics – a backbone of the Emirate’s economy. Dubai has adhered to open market policies and created growth opportunities for regional and international companies in logistics. Our approach has been to facilitate the logistics cluster stakeholders to benefit from the geographic, economic and infrastructural opportunities offered by Dubai.”

He added: “However, it is important that we sharpen our skills continuously. The all-round growth of organisations operating within the Logistics Cluster is a high priority for us. The Dubai Logistics Cluster Platform, through a collaborative and action-oriented approach, will enable us to further boost the competitiveness of Dubai in logistics.”

“Cluster approach and collaboration are especially significant now, as the world economy at large witnesses new and emerging challenges. There are various factors that affect global trade patterns and only a collaborative approach will help us to obtain a complete picture of the prevailing trends, and address them effectively,” explained His Excellency Mr Al Qamzi.

Attendees at the Dubai Logistics Cluster Platform

The launch of the Dubai Logistics Cluster Platform was preceded by a Focus Group, where all key stakeholders in logistics including government and private companies, service providers, educational institutions, related and supporting industries, government institutions and industry associations took part. They discussed the issues related to the business environment and the growth of the companies, as well as potential for stronger collaboration with public sector, which served as the basis for the Cluster Platform.

At the launch event of the Dubai Logistics Cluster Platform, a special panel discussed the key challenges faced by the industry. The panel included His Excellency Abdullah Bin Saleh, Assistant Ministry of Foreign Trade; His Excellency Mr. Ahmad Butti, Director General of Dubai Customs; Dr. Mohammad Al Zarouni, Director General of DAFZA; and His Excellency Abdul Mohsen Younis, CEO of Strategic and Corporate Governance in RTA.

His Excellency Mr Al Qamzi explained: “The Logistics Cluster in Dubai is playing a central role in the Europe-Asia-Africa trade, while also serving as a regional trade hub. The Dubai Logistics Cluster Platform is envisaged to serve as a permanent network that fosters collaboration between various stakeholders in logistics and related services, and lead to increased economic growth and competitiveness.”

The Dubai Logistics Cluster Platform is envisaged to facilitate better communications and synergies, and promote and facilitate interaction among firms, educational institutions, knowledge providers and the public sector to come up with joint specialised education and training activities. It will also facilitate market development through joint marketing as well as policy and action recommendations to strengthen and further develop Dubai’s logistics.

The decision to shift to metre in official and commercial activities, especially in the real estate sector, was announced in August last year. The move is in line with the UAE Cabinet Decision No. 31 of 2006 on the national system of measurement, which mandates the use of international system of units as a basis for the legal units of measurement in the country.

It follows the UAE’s introduction of litre instead of gallon as unit of fuel from January 1^st, this year. All oil companies and corporations operating in the UAE have since been using litre as a unit of measurement for the fuel, instead of the gallon.

A national action committee, made up of representatives of all relevant entities, including the UAE Land Departments, Municipalities and the Abu Dhabi Conformity and Quality Council, agreed upon the date of implementation, 11/11/11.

As per the circular issued by Chairman of Emirates Authority for Standardisation & Metrology’s Board of Directors, HE Dr. Rashid Ahmed bin Fahad, the conversion below can be used as a reference to all business transactions.

1 metre                       =          3.2808399 feet

1 square metre          =          10.7639104 square feet

1 cubic metre             =          35.3146667 cubic feet

1 foot                          =          0.3048000 metre

1 square foot                         =          0.0929030 square metre

1 cubic feet                =          0.0283168 cubic metre

However, beginning November 11^th all entities operating in the UAE will only be allowed to use the International system of Units (SI).

Eng. Mohammad Saleh Badri, Acting Director General, ESMA, said: “People should be used to the metre in response to the UAE’s decision to use a unified system, which is the metric system. In line with this, some of the software used by the UAE Land Departments must be changed. We want to build a UAE infrastructure that is per international best practice that is fulfilling World Trade Organisation – Technical Barriers to Trade (WTO-TBT) requirement.”

The UAE has been using different units of measurement due to the absence of a national regulation that mandates the use of SI. In July 2006, the UAE cabinet has approved the National Measurement System which was prepared by ESMA, in which under Article 8 mandates the use of SI as legal units of measurement.

ESMA has been in extensive dialogue with the land departments across the country since 2009 and has been conducting educational awareness for the last two years.

Badri explains: “The shift could not be done abruptly because first, the software used by the land department need to be changed to comply with the metric system, and second there is a psychological aspect involved in this as well.”