Dubai driver takes Indian Government to court

Armed with charter of rights for Non-Resident Indians, his case is now in Kerala High Court

Kamaruddin

Taking up the cudgels on behalf of millions of fellow Non-Resident Indians (NRIs), living across the world, an Indian driver working in Dubai has taken the Government of India to the court.

Seeking information from the government under the Right to Information (RTI) act, about the number of overseas Indians and the state of their welfare, Kamaruddin Valiyavalappil knocked on the court doors when he was denied information.

The court then ordered the concerned authorities to furnish the information within six months, which Kamaruddin alleges was never acted upon by the authorities, forcing him to sue them in the Kerala High Court.

Using the platform of the Federation of NRIs, Kamaruddin has now designed detailed welfare charter for overseas Indians demanding more rights and respect for those who contribute to the economy through their remittances which run into billions every month.

It’s not that Kamaruddin dragged the government to the court of choice, the court’s door was knocked only after exhausting all other options of getting the information and government’s attention towards expats’ plight.

Before approaching the Kerala High Court, Kamaruddin wrote to the Prime Minister of India Dr. Manmohan Singh, including his long charter of demands for expatriate welfare, but found no response.

His law suit calls for action against the Indian Government, represented by the Foreign Secretary Nirupama Rao, Kerala State Government represented by Chief Secretary, Indian Minister of Overseas Affairs, Vayalar Ravi, and other concerned officials, who according to him, have not responded to the Kerala High Court’s directive to provide him vital information that he requested as per the Right to Information Act.

Speaking to Emirates 24|7 on the sidelines of a press meet he called to announce the High Court’s decision to move a contempt of court trial against the government officials he said: “Since they are supposed to give details to an Indian citizen, I approached the Kerala High Court with the help of a leading advocate, Ram Kumar, seeking justice. I have been spending part of my regular salary to fight this legal battle, which is for the welfare of my fellow overseas Indians.”

The driver who works for a company based in Jebel Ali and is in the Gulf for over two decades is ready with a charter of rights.

The annual remittances by Indian expatriates is several times the total defence budget or education budget and remittances by overseas Keralites exceed the total Central Assistance to the State, he stated in a memorandum submitted to Dr Manmohan Singh in January 2009.

Few resources are allocated for overseas Indian welfare in successive Central Government budgets, he argues, criticising the political parties and religious groups that neglect  NRI issues.

His charter of demands includes, among others:

- Rehabilitation and implementation of welfare measures for expatriates returning home due to job loss

- Declaring an expatriate policy in tune with the Indian Constitution, ensure voting right for all NRIs, reserve seats in the Indian Parliament and Assemblies for  NRIs

- Protection for the families and assets of NRIs, using part of the fund collected from the Customs and Immigration Departments

- Pensions for retired NRIs the same way ex-servicemen are given

- Interest free loan to applicants seeking job abroad

 

Three-day holiday for Hijri New Year and UAE National Day

Three-day holiday for Hijri New Year and UAE National Day

Public and private sector to be closed from December 1-3

The Ministries and public institutions will close on Thursday, December 01, 2011, and resume on Sunday, December 4, according to the circular issued on Friday by Humaid Al Qattami, Minister of Education and Chairman of the Federal Authority for Government Human Resources.

According to the circular, the Islamic New Hijri Year 1433 holiday has been moved to Thursday, December 1, as it coincides with the National Day holiday from December 2  to December 3, 2011.

Al Qattami congratulated President His Highness Sheikh Khalifa bin Zayed Al Nahyan; His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses Rulers of emirates, UAE people, Arab and Muslim countries, on advent of the new Hijri Year and UAE National Day anniversary.

Holidays for private sector

Next Thursday,  December 1, 2011 will be a paid holiday for all workers of the UAE's private sector to mark the Islamic New Hijri Year 1433, the Ministry of Labour said in a statement.

The New Hijri year holiday was moved by the Ministry to next Thursday - December 1.

Next Saturday December 3, 2011 was also announced by the Ministry as a paid holiday for all workers of the UAE's private sector in celebration of the 40th anniversary of the UAE's National Day, according to the Ministry's statement.

The Ministry extended greetings and best wishes to President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His HIghness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai; Members of Supreme Council, Their Highnesses the Rulers of the emirates, the UAE People and Arab and Muslim countries, on advent of the new Hijri Year and the occasion of the UAE national day.

Bank holiday

Banks will close their branches on Thursday, December 1, 2011, to mark the 40th anniversary of the UAE National Day as well as the New Islamic Hijri year, the Central Bank of the UAE announced in a notice.

"Banks are required to ensure that their ATMs are properly stocked with cash at all times," the Central Bank's notice said.

 

'Floating city' to come up soon in Maldives

'Floating city' to come up soon in Maldives

Man-made island might be the solution for the country's forecast inundation issue

Building a “floating city” of 20,000 houses next to Male, capital of the Maldives, may be the answer for the tiny nation’s agony of finding a new homeland for its populace as some of its coral reef islands face an imminent threat from the rising sea level.

Although Dutch Docklands, a Netherland-based sustainable floating architecture specialists, has already signed up with the government of Maldives to build a “commercial” floating development, comprising a golf course, convention centre, private islands, valued at $1 billion (Dh3.67 billion), it has proposed the idea to build “affordable” housing for the locals.

The company will soon unveil the first floating island with six to eight affordable houses that people can see, feel and walk.

“It is not only about reinforcement of tourism, but also reinforcement of society. It is about giving and taking. We want to share our know how, gained from commercial projects, with the less fortunate and provide them with affordable floating housing,” Paul van de Camp, Chief Executive Officer, Dutch Docklands, told us.

Over 80 per cent of their 1,190 islands are no more than a meter above sea level, with Male being one of the most densely populated islands in the world. The government had previously thought of buying land from other countries and moving its people there.   Maldives is also in need of over 20,000 houses between now and 2022 and they have no more land to build those.

“We are working on the master plan, which we have already partly presented to the government and the President of the Maldives, in which we make affordable floating islands. We can provide them with a whole ‘floating city’ of 20,000 houses next to Male,  where the locals can live in floating houses.”

Golf course designer competition in Dubai

Dutch Dockland will also be announcing of the name of the designer’s for their $500-million 18-hole floating golf course soon after this year’s Dubai World Championship.

“We have selected already six top golf course designers, who will each, just after the Dubai World Championship, give a full presentation how they think they can assist us by making not only the first floating course, but also the most environmentally friendly golf course in the world. Soon after this we will then announce the winner,” van de Camp informed.

The course, which will be connected through underwater tunnels, is due for completion in 2015 at the latest. It  will be located around 15 minutes by boat from the airport to attract all residents and visitors.

 

5 ways for Indian expats to make a killing from all-time low rupee

5 ways for Indian expats to make a killing from all-time low rupee

Rupee dives to 14.34 vs. Dh1 and 52.67 vs. $1; From property to fixed-income options, here’s how to profit

The Indian rupee declined to its lowest-ever level of Rs14.34 against the dirham (Rs52.67 against the US dollar) at 8.30am UAE time (4.30am GMT) on Tuesday morning, with a number of experts warning that it could tumble even further in the coming weeks.

As fears about the eurozone debt and the global economy as well falling local stock markets provoked further selling of the currency, the local unit plunged to 52.50 against the greenback as foreign exchange markets opened, causing further problems for the Indian central bank as it tries to rein in near double-digit inflation.

Analysts warn that deteriorating economic indicators in India and across Europe bode ill for the Indian currency, which, with a decline of 17.8 per cent since the beginning of 2011, is already the worst performing major Asian currency this year.

A section of experts believe that now that the rupee is in uncharted territory, it could fall to as low as Rs58 against the US dollar – or Rs15.79 against the dirham – in the first half of 2012. This suggests that the rupee could decline by more than another 10 per cent in the next six months or so, which will in turn hammer Indian equities and local investments.

Indeed, it is time for non-resident Indians (NRIs) to look at options to maximise this favourable remittance window, which may or may not last long. After all, the last time the rupee weakened to such levels was back in Q1 2009 – when it plunged to Rs14.17 against the UAE dirham on March 9, but bounced back in less than three months and, in fact, strengthened to Rs12.78 on June 6, 2009.

In the past year or so, the rupee has traded in a wide range against the dirham – from Rs11.95 on November 7, 2010, to Rs14.34 this morning. One dirham fetched Rs12.17 on January 1 this year – in other words, NRIs earning in US dollars (or dollar-denominated currencies such as the dirham, riyal or dinar), have got a salary hike (in rupee terms) of almost 18 per cent since the beginning of the year and an even steeper 20 per cent since August 2, 2011.

But as every expatriate knows, this gain is only notional – after all, we spend a majority of our earnings in the currency we earn and in the country we earn it, and only remit perhaps a small proportion of our income every month. So, obviously, it is that small proportion that has gained – not the entire income.

Still, a falling rupee – hurts as it does India’s economy as imports into India become expensive – is an opportunity for NRIs to benefit from the most favourable exchange rate in more than two years. Here’s how:

1. Remit, remit, remit

Whether you want to buy a house or a just few shares in the Indian markets, the first step to making any kind of investment is to transfer funds into an NRE / NRO account in order for them to be gainfully deployed. Now you might want to accumulate your resources – the next salary for most employees is due within a week or so and you might want to wait for it.

With the Reserve Bank of India (RBI) in public claiming that they will not intervene to buoy the sagging rupee this time, experts say the currency has some way further to fall. In that case, it may be safe to wait for an even better exchange rate although foreign exchange markets are extremely volatile at the moment and there’s no guarantee that the RBI, and with it the rupee, will not take a U-turn.

Still, it might be a good idea to club your remittances in a single tranche rather than break it up into different, smaller slivers as there is a fixed cost associated with remittance.

2. Explore fixed income options

Indian banking is at the peak of the interest rate cycle, with the country’s banks offering very attractive deposit rates on fixed income products – around the 10 per cent per annum mark. With most investors today hoping for a return ‘of’ investment rather than a return on investment, that is definitely something worth considering, especially because the current favourable exchange rate makes the principal all the more beefier.

Moreover, these investments are extremely safe, and with India’s interest rate differentials with other markets at quite attractive levels, this is an option that NRIs should consider as part of a broader portfolio of investments. A fixed income investment made now will hold good for the tenure of the deposit even if the RBI starts revising interest rates downwards from January next year, in line with economists’ expectations.

3. Prepay that mortgage

A good number of NRIs have taken out home loans with Indian banks for properties in India. With a peaking interest rate cycle, the interest burden on that mortgage has grown especially onerous in the past couple of years. It may be time to borrow cheap – UAE banks and those in other Gulf states with a fixed peg to the dollar try to track US interest rate movements and are therefore currently offering personal loans at low interest rates.

Even though interest rates in the Gulf are higher than those in the US, they are much cheaper than those in India – so it might make sense to borrow from a local bank here and remit a lump sum taking advantage of the favourable exchange rate to prepay your mortgage in part or full.

However, when deciding to go for a prepayment by borrowing afresh, make sure you do the math on the difference in interest rates between your banks in India and the UAE/other Gulf states, and add to the equation any prepayment penalty/fees your Indian bank might charge you. Prepay only if you're making a reasonable saving in interest outgo.

4. Invest in Indian equities

This advice comes with a strong disclaimer – the Indian stock market is already undergoing a correction, and could easily fall another 10 to 15 per cent from here on. Global ratings agency Moody’s recently downgraded the country’s banking sector while its peer Standard and Poor’s has warned that India’s inadequate infrastructure is a major block to growth push.

But as the world renowned investor Warren Buffet once famously remarked – be fearful when others are greedy, and greedy when others are fearful. As markets reach their lows, it may be prudent to keep the cash ready and jump on the bandwagon once they’re on an upswing.

The one thing that investors will do well to remember is to never try to catch a falling knife – i.e., do not try to time the stock markets, and enter only once the current rout is evidently over. And of course, do your research on the shares you’d want to buy – or, better still, take the advice of a good broker or investment manager.

5. Buy a house

Just as the previous investment option, investors will do well to study the market closely before taking a call. Experts maintain that properties in most metro cities in India are becoming overpriced and that real estate values in India could fall in the near future as economic growth slows down due to a lack of export demand coupled with domestic woes.

In fact, research firm Macquarie yesterday downgraded India’s economic growth forecast for the next fiscal to below 7 per cent while warning that the country’s GDP expansion outlook is on a slippery slope. In this case, it might be prudent to scout for properties in second or third tier Indian towns where there hasn’t been much price appreciation so far and therefore the potential is higher while the downside remains limited.

Again, one of the things to keep in mind when taking on a fresh mortgage is that this favourable exchange rate will not stay forever, and so ensure you will be financially able to continue making the payments even once the rupee gets dearer by up to 25 per cent.

In the end, what you’d like to do with the extra rupees that your dirhams are earning today depends on your individual circumstances and investment objectives, but do remember the golden rule of investment – what goes up, comes down. And vice-versa.

 

Dh1 = Rs14.19; near all-time lows

Dh1 = Rs14.19; near all-time lows

Rupee down 18% in 3.5 months

Published Monday, November 21, 2011

After flirting with the Rs14-mark for almost a week, the UAE dirham this morning surged past that magical number for non-resident Indians (NRIs) at 3.40 GMT (7.40am UAE time) on Monday, November 21, 2011. The rupee fell to Rs14.1953 versus the dirham at 2.55pm UAE time (10.55 GMT).

The rupee last traded at these low levels – below 14 versus a dirham – only for a couple of weeks in March 2009, and then remained above that level for 32 months. Now, with the rupee once again plunging to such lows, remittances from the UAE and across the world are expected to surge as NRIs take advantage of a favourable conversion rate.

Asia’s worst performing major currency this year slumped for the fifth consecutive session this morning and is now within sight of its record low of Rs14.21 versus the UAE dirham (Rs52.20 versus the US dollar) as oil importers bought dollars and subdued shares heightened fears of foreign fund outflows.

Indian stocks tumbled again this morning after plunging the whole of last week, and the BSE Sensex closed down for the eighth consecutive session - down 425 points to 15,946 – its lowest showing in more than two months.

The strengthening dirham and a constantly weakening Indian rupee has recently seen up to 20 per cent spike in remittances from the UAE’s Indian expatriate community, a senior official of one of the largest money remittance agencies in the country told 'Emirates24|7'.

“In the initial stages of the current depreciation, we saw a sudden and major increase in remittance volumes,” Y Sudhir Kumar Shetty, COO – Global Operations, UAE Exchange, said in emailed comments to this website. “Compared to the normal trend, volumes increased by more than 20 per cent,” he confirmed.

“There [is an] increase in volumes as and when there is a significant depreciation in the rates,” Shetty said, adding that the initial surge has subsided. Experts believe that many non-resident Indians (NRIs) may have already sent their savings home at a favourable exchange rate. “Now the upsurge has come down and the flow is somewhat normal, though uptick is there,” Shetty said.

“It’s not a normal feature on the volume rise as most of the remitters remit home on monthly basis irrespective of the rate movement,” Shetty added. The remittance surge, however, might return if the downward trend in the rupee persists and it tests its previous lows, especially as the Reserve Bank of India (RBI), the country’s central bank, is sticking to its guns and said it won’t intervene to prop up the worst performing major Asian currency this year.

“Let’s not lose sight of the fact that there is a global dynamic here. And to try and resist or try and do something for which we do not have a capacity, we may run out of capacity, in a situation global forces are pushing it along, is also a risky strategy,” RBI deputy governor Subir Gokarn said in a TV interview last week.

The rupee is now down more than 18.3 per cent in three-and-a-half months – from 44.07 against the dollar (11.998 against the dirham) on August 2, the rupee slumped to 52.14 on Monday, a level it last saw on March 12, 2009, and is within touching distance of breaching the low of 52.20 against the US dollar (Rs14.21 against the UAE dirham) that it registered in that month.

The strength of the dollar (and dollar-denominated currencies such as those in the GCC region) has resulted in huge money transfers to India, already the world’s largest recipient of remittances. According to the World Bank’s Migration and Remittances Factbook 2011, India is the largest recipient country of remittances, receiving $55 billion in remittances in 2010.

However, despite the rupee remaining weak and repeatedly making new multi-year lows, a section of experts believes that now that the rupee has broken the 52-mark, it could go as low as 58 against the dollar (15.79 against the UAE dirham).

One such expert is Laurence Balanco, Asian Technical Analyst, Credit Lyonnais Securities Asia (CLSA), a brokerage and investment group. “The rupee at a minimum price will retest the Rs52 level [against the US dollar], which are the previous highs. A break above that will open a road for a move up to Rs58 area,” Balanco said in a televised interview with CNBC-TV18, an Indian business news channel.

“The emerging market currencies have been weakening, which is the general theme of dollar strength versus emerging market currencies. The technical set up for that is the dollar strength against emerging market currencies,” Balanco added.

 

Fake cell phone users in UAE to face disconnection from Jan 1

Fake cell phone users in UAE to face disconnection from Jan 1

Counterfeit phone dealers can be fined up to Dh1,000,000

Published Monday, November 21, 2011

 

Is your mobile fake? If so, it’s time to change the handset as the Telecom Regulatory Authority (TRA) has joined hands with UAE telecoms to disconnect service to duplicate handsets from January 1, 2012.

Both etisalat and du have said its services to such handsets would be suspended. In a new campaign to raise awareness and discourage the use of fake mobile phones in the UAE, TRA has also threatened to fine dealers involved in such trade.

According to Article 74 of the UAE Telecommunications Law anyone found manufacturing or supplying telecommunications apparatus that does not comply with the regulations, to be used within the state, can be penalised with a fine of anything between Dh50,000 and Dh1,000,000.

The decision could see an end to several dozen mobile phone dealers specifically operating out of the Dragon Mart in Dubai. Most of them sell counterfeit phones of popular models including Nokia, Blackberry and Samsung.

A fake BlackBerry Bold can be obtained for just Dh600, while a Samsung model with Wifi and all applications preloaded is being sold anywhere between Dh400 to Dh800.

Mobile users have also been warned of health risks following the use of handsets that have been released into the market without proper tests and checks.

According to the TRA, fake phones are especially prone to battery leaks or explosions, releasing highly corrosive or poisonous chemicals. The low quality assembly also means radiation levels go unchecked, the batteries tend to drain faster, and signal reception is usually much weaker.

TRA Director-General Mohamed Nasser Al Ghanim said issues of counterfeiting and piracy have a tremendous impact on the economy and intellectual property rights.

“Fake mobile phones are also low quality devices that have been manufactured without the proper tests and checks. In addition to performance issues, the use of such devices could have a significant impact on personal health and safety,” he said.

Those involved in the sale of fake mobile phones will be given a notice and a fine, while in some cases licenses could be withheld as a consequence of regulations not being met.

Both etisalat and du customers have been urged to SMS their International Mobile Equipment Identity (IMEI) of their mobile phones to a specially created short code ‘8877’. The IMEI code will be displayed on most mobile handsets by dialing *#06#.

Customers using a counterfeit device with a fake IMEI number will receive an SMS message notifying them of the same, and all telecom services, including calls, texts and internet will be disconnected.

 

Luxury calls: Vertu unveils Dh55,000 phone in Dubai

Luxury calls: Vertu unveils Dh55,000 phone in Dubai

Why make calls or browse the Net when you can get 007-kind of services along your luxury pocket pal?

Last week, Vertu, Nokia's luxury mobile phone arm and world's leading manufacturer of handcrafted phones, unveiled Constellation, its first-ever touchscreen phone, in Dubai.

While that sounds ancient, technology-wise, this is a device that affords its owner the power to clear skies or recoup assets from another country or enter some of the world's most respected private members clubs – all at the touch of a button – or a few. And if that sounds James Bond-ish, well it is.

But let's begin from the fact that the world's first touch screen phone was launched perhaps in 2000. Is this really how long it took Vertu to come out with a touchscreen?

"No, we've never had a touchscreen phone before," says an unapologetic Steve Amsutz, Vertu's global head of sales. "We launched the Constellation Quest, our first smartphone, exactly a year ago," he adds. "This year, after two-and-a-half-years of development, we are proud to present the first touchscreen phone."

Proud, sure, but for a phone company that boasts of being the Rolls-Royce in mobile phones, isn't it a bit late? "Apple kicked off the touchscreen concept three-four years ago and the whole industry has moved on from there… it was kind of a challenge for us," he says, explaining that Vertu's lead time – the time it takes for product development from concept to store – is quite longer than the mass market manufacturers.

 

Why's that so? "Simply because we put in much more attention to detail – the craftsmanship required to engineer a phone from the material we use takes much longer than for, say, plastic," he says. To be fair, Vertu uses unconventional material such as ceramic, precious stones and space-grade aluminium in its handcrafted phones.

For its latest pocket pal, the Constellation, the luxury phone-maker boasts of using sapphire crystal for the screen, an 8 megapixel camera with an intricate ruby surround on the shutter key, polished ceramic pillow, surgical grade stainless steel with satin and polished finish, highest quality leather on the back plate of the phone as well as Vertu's unique high fidelity sound system.

"That's why we are coming behind the pack – however, we have now caught up in terms of technology," he claims, adding that the company is "very happy with the speed of this device." He swears by the clarity of the screen, going as far as giving me an impromptu demo of the Ghost Protocol clip showing Tom Cruise performing his famous Burj Khalifa stunts – talk about tailoring the spiel to the audience!

Amsutz says the Vertu product offering is based primarily on three overlapping offerings – pioneering design (what he calls 'the heritage of Vertu'), technology (where the company is satisfied for having finally 'ticked all the boxes') and the third, perhaps the most important pillar, services, where he claims Vertu is putting the most emphasis and development resources.

"Vertu is building a whole new world of exclusive services that are actually part of your device," he says. The price-tag? Starting at €4,400 (Dh22,000) for an entry-level Constellation (Satin Brown), the most exclusive Constellation (Red Gold Mixed Metals) can set you back by a neat €10,900 (Dh55,000). But for the uninitiated, don't for a moment think that you get just a mobile phone for that price.

"Once you insert your SIM card into the device, you will be prompted to register with Vertu services – you will then decide to go (or not) through a 'fitting call; which will help us understand your passion points," he says. This helps the company to offer products and services geared to the customer's taste.

The famous Vertu Concierge, legendary for getting things done, is only a tap away, he says. "The Concierge, accessible via a dedicated key on the handset, can arrange anything from bespoke gifts to money-can't-buy events and experience and are 100 per cent committed to fulfilling a Vertu owner's every request," says Amsutz. With experts based in city hubs around the world, the service provides dedicated lifestyle assistance round-the-clock in eight global languages.

"The phone is 'location aware' – meaning that the moment I land in a new city, I am offered a City Brief, which tells me what to do and, sometimes more importantly, what not to do in a particular place," he adds.

The device also comes pre-loaded with three unique applications that Vertu's sales director claims are "relevant to the times that we live in". And that's where the Vertu customer wins his cash back – metaphorically speaking.

The first app is about the physical security of the customer and his or her team/family. "We have signed a partnership with Protector Services Group (PSG), a global security provider that organizes private surveillance for the Vertu customer.

We can help you recuperate assets that you may have left behind in another country, we can organize private jets – and clear the skies for VIPs to reach a particular airport. There is a world of security services beyond the typical bodyguard services that can be provided by PSG," he says.

The second app – perhaps a little less relevant in the Middle East – is the wine service. Vertu has partnered with Berry Brothers and Rudd, one of Britain's oldest wine merchants, to provide information about wine blends and vineyards.

Vertu owners can submit questions at any given time for an almost immediate response, as well as the "Identify a Bottle" feature, which allows users to photograph the wine label of any bottle to receive identification, tasting notes and advice about similar wines from a team of experts.

The third app is about access to some of the world's most exclusive clubs. "We are signing partnerships with clubs across the world – right now we have about 10 locations in the world, including the Key Club in Hong Kong and Shanghai, Core Club in New York, St James Club in Paris and the Monte Carlo Club in Dubai – where you can enter the club free of charge, a certain number of times a year," he says.

Of course there are other exclusive concierge services that are being lined up - door-to-door transfers of your luggage, access to airport lounges, and plenty more, he promises.