Dubai Shopping Festival 2013 dates released

Festival will be held from January 3 to February 3, 2013

 

The 18th edition of the Dubai Shopping Festival will be held from January 3 to February 3, organisers have announced.

The Dubai Events and Promotions Establishment (DEPE), an agency under the Department of Economic Development, aims to build on the huge success of last year’s event and will again project “Dubai at its Best” as its marketing slogan and promises a rich and varied programme of events.

“Our stakeholders and partners were very positive with our main message last year and were very excited about it, to the extent that most of them incorporated “Dubai at its Best” into their own individual campaigns and products, which sent a strong message to the world that Dubai brings out the best of everything during the festival,” said Laila Mohammad Suhail, DEPE CEO.

“This year, again with the help of our strategic partners and sponsors from the private and public sectors, we are planning to capitalise on this success and reaffirm this statement through a diverse offering of shopping, competitions and entertainment.”

Launched in 1996 under the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, to position Dubai as a leading tourist destination, Dubai Shopping Festival stayed true to its slogan “One World, One Family, One Festival” and has attracted more than 42 million visitors from across the world, who have spent close to Dh100 billion.

Laila indicated that the dates for DSF 2013 were decided in consideration of the spring break in neighbouring countries and some international target markets, but also stressed the importance of announcing the dates of the event as early as possible to allow many stakeholders to plan for the events.

“Government agencies, event organisers, the retail and hospitality sectors, tour operators, tourists and many others would benefit from knowing the dates of DSF in advance. This announcement also comes as part of enhancing the Dubai Calendar brand, the gateway for a more eventful Dubai and the official point of reference for all events happening in Dubai across the year,” said Laila.

In addition to the shopping and prizes, hundreds of other events and activities are planned, from international concerts, musicals and shows, to sports, outdoor and fashion events.

Air India Express cancels key Eid holiday flights from UAE

Air India Express cancels key Eid holiday flights from UAE

Passengers booked to fly between August 16 and 22 being informed that flights have been cancelled

Air India Express has cancelled several key flights scheduled to fly during the Eid holidays.

Passengers who had booked their tickets to fly between August 16 to 22 are being informed that their flights have been cancelled and they need to make alternate arrangements.

The airline has not given any reason for why it is cancelling the flights except that passengers are being informed well in advance and that they should look for alternate flights.

Following the cancellations, affected passengers will now have to pay more than 150 per cent to book flights on private airlines for the same dates. Most flights are fully booked for Eid holidays.

Jayanthan one of the passengers says he had planned his holidays well in advance and the announcement is nothing but a shocker. “Tickets are at its peak. A one way ticket to Calicut is now costing me Dh2,000 plus. I had initially booked the Air India Express ticket for Dh1000,” he said.

The airline has cancelled flights to most major destinations in Kerala such as Trivandrum, Cochin and Calicut apart from other destinations in India.

However it is still not clear how many passengers have been affected. Travel agents too are clueless about the cancellations and say they were not informed in advance. There was no official comment available from the airline.

Meanwhile according to reports, Air India Express has announced new schedule of flight operating from the Middle East to Mangalore and Mumbai, effective July 23.

The Mangalore-Kuwait-Mangalore flight will operate on three days - Mondays, Wednesdays and Fridays and will depart at 5.45 pm from Mangalore.

The Mangalore Bahrain flight will now operate on Saturdays and will depart Mangalore at 10 am.

The Mumbai flight will operate on Mondays and will depart at 10.30 am.

Best options to rent an apartment for those moving out of shared accommodation

Best options to rent an apartment for those moving out of shared accommodation

Studio flats in Sharjah and Ajman comparatively cheaper than those available in Dubai

Now that the confusion on whether to provide tenancy contracts and utility bills across the UAE to get the residence visa renewed is over, families living in shared accommodation will have to look out to rent an apartment.

And if International City or Dubai Academic City, where rents for a studio apartment range between Dh17,500 and Dh19,000, it may still exceed the budget of those earning a minimum Dh4,000 per month salary, the only alternative is to move to the Northern Emirates. Moreover, if the family has one earning member (his spouse isn’t working), then those earning the minimum salary of Dh4,000 pm can find the best alternatives in Sharjah or Ajman, where a studio apartment is available for less than Dh850 a month (read: only rent). The apartment size could vary between 350 and 400 square feet.

Sharjah, however, allows three people to share a studio apartment, but there is no such limit yet applicable in Ajman.

A salaried individual in the UAE can sponsor his family provided he earns a minimum salary of Dh4,000 per month (pm) and has his own accommodation, or earns Dh3,000 pm with company accommodation.

KK Ashraf and his family share a three bedroom apartment in Karama, Dubai, with two other family. He says he currently is paying Dh1,700 per month in rent.

“We have been sharing the apartment with my friend’s family for the past three years. Previously, we were sharing a villa in Al Rashidiya. We were never asked for a rent contract. I am a bit confused about whether to move to Sharjah and save on rent, or pay more than 35 per cent of my salary for housing in Dubai.”

Usman Ali, who shares an apartment in Bur Dubai, says he moved to Dubai to avoid the peak hour traffic of Sharjah. He pays Dh2,000 per month for the shared accommodation.

“I know I can get a one-bed apartment in Sharjah. I moved here as I work close by. Our only hope to stay in Bur Dubai totally depends on the authorities as you don’t know they might reconsider their decision again,” he mentions.

On Tuesday, Major General Nassir Al Minhali, the Ministry’s assistant undersecretary for naturalization and residence, confirmed that expatriate applicants must produce a tenancy contract for the renewal of their visas

The new rule is intended to allow authorities to locate their residence as “addresses given in previous applications are not clear or accurate.”

He said those sharing accommodation must also present proof of their residence by submitting a tenancy contract or utility bill in their names.

“The decision is not targeting any party or property group but it will serve those departments seeking accurate data about foreigners’ residences…this measure is not exclusive for the UAE as it is enforced in all advanced countries.”

So if you are looking for a house, here are the best (cheapest) alternatives for families:

Sharjah

-Studio and one bed apartment in Rolla : Dh10,000 to Dh14,000 pa

-Studio apartment in Al Qulaya: Dh15,000 pa

-Studio apartment in Al Taawun area: Dh19,000 pa

-One bed unit in Al Mina Road: Dh17,000 pa

-Studio apartment on Al Wahda Road: Dh13,000 pa

-Studio, one bed units in Al Buteena: Dh13,000 to Dh17,000 pa

Ajman

-Studio, one bed units in Falcon Tower: Dh13,000 to Dh16,000 pa

-Studio apartments in Al Naemiyah: Dh10,000 pa

-Studio, one bed units in Horizon Tower: Dh12,000 to Dh15,000 pa

Dubai

-Studio apartments in Skycourts: Dh18000-22,000 pa

-Studio apartments in Deira: Dh20,000 pa

-Studio apartments in International City: Dh17,500 to Dh19,000 pa

-Studio apartments in Dubai Academic City: Dh18,000 pa

-Studio apartments in IMPZ: Dh17,000 pa

 

Visa on Arrival Rules

Majority of visitors to UAE will have to obtain a visa prior to entering the emirate. Citizens of certain countries (GCC nationals and nationals of listed countries) do not require visa prior to arrival at the UAE airport. For the rest, who do not fall into this category, there are other efficient systems in place.
The kind of visa required by you to enter into UAE will depend on various factors such as your nationality, purpose of visit, and duration of stay. The visa rules change from time to time. Although, these details are an endeavour from our side to keep you updated, you are advised to check with your regional UAE embassy or consulate or the Dubai Naturalization and Residency Department, to keep yourself updated.

Visa Exemption

If you are a national of any GCC country, you do not require a visa to visit the UAE. You only need to produce your GCC country passport on arrival at the entry point in the UAE.

Visa on Arrival

Visitors falling under the below categories will receive visit visa on their arrival at the airport:
GCC Residents: Residents who are not GCC nationals, but, have high professional status, such as business men, company managers, accountants, auditors, engineers, doctors, pharmacists, or employees (and their families) working in the public sector, drivers and personal staff under their sponsorship, are all eligible for non-renewable 30-day visa on arrival, at approved points of entry. However, a valid passport with valid GCC residence stamp, along with proof of employment in the country of residence, may require to be produced for this category.

Nationals eligible for visa on arrival

Nationals belonging to the following countries will be granted visa on arrival in Dubai and UAE. Therefore, no prior arrangements have to made, and the visa stamp is free on arriving at the Dubai International Airport or other airports in UAE. However, this list may vary from time to time, and it is therefore advised that you check with your airline or local UAE embassy before entering UAE.
United Kingdom, United States, Germany, Italy, Netherlands, Luxembourg, France, Belgium, Switzerland, Sweden, Austria, Portugal, Denmark, Norway, Greece, Ireland, Iceland, Monaco, Spain, Finland, Andorra, Vatican, Liechtenstein, Marino, New Zealand, Australia, Brunei, Japan, Singapore, San Marino, South Korea, Malaysia, and holders of Hong Kong SAR passports.
Note: Effective 2nd January 2011, Canadian nationals require a visa to enter the UAE. They are not eligible for a free visit visa on arrival in the UAE. They will have to apply in advance for a UAE visit visa or UAE tourist visa.

Sponsored Visa

In case, you do not fit into any of the above mentioned categories, you will require a sponsor for your visit, and the sponsor will have to apply for the visa on your behalf. Valid sponsors are those who fit into any of the below mentioned categories:

• Hotel and Tourist Companies. They can apply on your behalf, either for a Visit Visa (with validity period of 30 days), or Tourist Visa (valid for 30 days) or Service Visa (valid for 14 days).
• Airlines and Airline Handlers who can apply on behalf of their crew members for a 96-hour Transit Visa
• Other UAE-based organizations. But, they can apply only for Visit Visas and Service Visas
• Individuals (Friends or Relatives) who already reside in the UAE, can also apply on your behalf for a Visit Visa, but, may be subject to certain guidelines.

Amer mobile visa service

The General Directorate of Residency and Foreign Affairs in Dubai is said to have introduced a mobile visa service to organisations and individuals in Dubai. You need to call 800-5111 to arrange for the visa, and the staff of the Amer Service can visit you if required, at an additional fee. The operating times are 08:00-20:00hrs (Sunday to Thursday only).

Distinguished Guest System (DG System)

This is a special service for people who frequently visit Dubai (Managers, Business men, and VIPs) of all nationalities. The service offers special amenities allowing the D G to enter city several times during a limited period (as specified by the sponsor), and execute transactions at a faster pace, by issuing visa electronically through the system during each visit. The D G will be mostly be given E-Gate card for entry/exit purpose.
Establishments can register for the DG System. The person seeking the DG system should not be less than 18 years of age. This service is open to all nations eligible for visa-on-arrival at UAE. However, the applicant should have entered UAE previously by visit visa.

Visit Visa for Dubai, Abu Dhabi and Sharjah

The Visit Visa is applicable to tourists, who intend to spend more than 14 days in the UAE, and those coming for family visits as well as those on long-term business visit. It requires the sponsorship of UAE resident or any company or hotel licensed to operate within the country.
Visit visas for immediate family members can be obtained by residents (sponsors) with monthly salary of minimum Dh.4000 or Dh.3000 (with accommodation). The short-term visit visas are valid for 30 days, while long term visas stand valid for 90 days. However, no extensions are permissible beyond this period.
A refundable deposit fee of Dh.2000 guarantee from expatriates who intend to sponsor spouse or first-degree relatives is imposed. The visa is valid for entry within 60 days from date of issue and is renewable for another 30 days, if required, although a fee of Dh.500 is charged for renewal.

Documents required for visit visa

• Typed application form
• Copy of sponsor’s passport and family member’s passport
• Photo of family member
• Marriage contract attested by Ministry of Foreign Affairs or UAE Embassy (in case of sponsoring spouse)
• Attested birth certificates (if sponsoring children)
• Relationship proof from the Embassy (if the relationship cannot be proved from family names in sponsor’s passport)
• Attested job contract if sponsor works in private company / salary certificate if working in public sector
• Travel insurance

Visit Visa Application Process

• Visit any authorized typing office and get application typed.
• Visit DNRD and submit it, along with required documents to the visa section.
• Send a copy/original visa document to your relative. If only the copy was sent to family member, submit the original at the airport or DNATA counter at DNRD.
• For more info, visit DNDR

Visit Visa Fee

Short term visa: Dh.620 (application fee + typing fees)
Long term visa: Dh.1120 (application fee+ typing fees)
A deposit of AED 1000 to be paid, which can be reimbursed after your relative has left the country.

Visit Visa Renewal

Visit visa renewal is possible only once in UAE. The new visa rules suggest that on expiry of visa, you must leave the UAE for a month before re-entering the country.
However, there are conflicting information seen about whether visit visa is renewable. The DNRD visa site says visit visa is not renewable. Therefore, visit the website DNDR from time to time, to keep yourself updated about the changing rules.

Tourist Visa

Tourist Visa is a special category of Visa under Visit Visa, which could be obtained for individual tourists from East and West Europe, Bulgaria, Turkey, Ukraine, Poland, Russia, Albania, Hellenic Republic, St. Lucia, St. Kitts Navis, Cuba, Mexico, Bermuda, Cuba, Guyana, Belize, French Guiana, Martinique, Barbuda and Antigua, Kingston, St. Vincent, Palao and other non-defined American nationalities, South Africa, Thailand, China, Singapore, Cyprus and Malta.
The Tourist Visa permits the holder to stay for duration of 30 days and is non-renewable. The visa requires sponsorship of hotels and tour operators who bring in visitors from the said countries.

Multiple Entry Visa

Multiple-Entry Visas are issue to business visitors who have a relationship with either a multi-national or other reputed local company, and are frequent visitors to the UAE. This sort of visa is valid for period of six months from the date of issue with a 30-day duration period. The validity is non-renewable and the visa costs Dh.1000.
Those seeking Multiple Entry Visas will have to enter UAE on a visit visa and obtain the Multiple Entry Visa while in the country. The visa is stamped on the passport.
German Citizens: The German Citizens (tourists or business people) need to apply to the UAE embassy in Germany for a one or two year multiple-entry visa. No sponsor is required. The maximum duration of stay should not exceed three months a year.
US Citizens: The US Citizens (tourists or businessmen) can apply to the UAE embassies in the US for one to ten year multiple-entry visas. A sponsor is required and the visa will be granted free of charge. The maximum duration of stay should not exceed six months per visit.

Transit Visa - 96-hour Visa Transit Passengers:

The transit passengers stopping in at Dubai International Airport for a minimum of 8 hours are eligible for the 96-hour Transit Visa, provided they are sponsored only by the Airlines, and their applications confirm onward booking to a 3rd destination.
For transit passengers or those holding special permits, or for a visit or mission, the passport or the document should be valid for a minimum of three months.
Citizens from countries such as Afghanistan, Somalia, Niger, Iraq and Yemen are not eligible for 96-hour visa on arrival.

Kindly note: Visa rules are subject to sudden change without warning. The UAE Embassy in your country or the Dubai Naturalisation and Residency Department (DNRD), the relevant authority in the UAE, is the only source of information that can be relied upon. The validity period for a free visit visa on arrival change often.

UAE Visa Rules

General information about visa requirements and different types of visas in the UAE has been listed below. However, the visa regulations are subject to change and therefore, should be verified with the travel agent or nearest UAE embassy or consulate or your airline before travel.
Citizens from 33 countries listed herein do not require visas prior to arrival at the UAE airport. Nationals from GCC countries do not require a visa to visit the UAE. They only need to produce their GCC country passport at the entry point in UAE. However, people entering the UAE for employment, will require a visa which could be obtained through their employer or sponsor. The kind of visa required for entry into the UAE is dependent on several factors such as nationality, purpose of travel, duration of stay etc. A penalty charge of Dh.100 per day is imposed on visitors who overstay.

Visa on arrival granted to following categories:

AGCC Residents: are residents who are not GCC nationals, but hold high professional status such as Company Managers, Accountants, Auditors, Business People, Engineers, Doctors, Pharmacists or employees working in public sector, their families, drivers and personal staff sponsored by them, are eligible for non-renewable 30-day visa on arrival at approved ports of entry. National Citizens of the following countries: UK(with the right of abode in UK), France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Switzerland, Austria, Sweden, Norway, Denmark, Portugal, Ireland, Greece, Finland, Spain, Monaco, Vatican, Iceland, Andorra, San Marino, Liechtenstein, United States, Canada, Australia, New Zealand, Japan, Brunei, Singapore, Malaysia, South Korea and holders of Hong Kong SAR passports will be granted a free of charge visa for a single visit upon arrival in the UAE. It should be noted that this list is subject to change from time to time and it is therefore best to check with local UAE embassy or the airline used for travel to UAE.

Visa not required for:

AGCC Citizens: Citizens of Arab Gulf Co-operation Council member states, including Kuwait, Bahrain, Qatar, Saudi Arabia and Oman do not require a visa. Visitors, who do not fall into any of the said categories, will require a visa and a sponsor for their visit. The sponsor usually applies for the visa on behalf of the visitor. Valid Sponsors: Hotel and Tourism Companies can apply for visas on behalf of the tourist for a Tourist Visa with 30 days validity, or a Service Visa valid for 14 days or a Visit Visa valid for 30 days which could be extended by another 30 days. Airlines and Airline Handlers are eligible to apply on behalf of their crew members for a 96-hour Transit Visa. Even other organizations based in the UAE may can apply for Visit Visas and Service Visas. Individuals (friends or relatives), who are already residents in the UAE, subject to guidelines, can also apply on your behalf for a Visit Visa.

Entry Service Permit:

An Entry Service Permit is applicable to the following categories and their families, such as Company Manager’s representatives, Account Auditors, Sales Managers, delegations from companies or establishments to carry out commercial activity in the UAE, consultants sought by the UAE companies to perform certain urgent tasks. The visa will have to be used within 14 days from date of issue, as it is non-renewable. This type of entry permit will be issued only for urgent purposes, and the holder may enter and depart the UAE through any airport. The Entry Service Permit Visa can also be availed by nationalities authorized to obtain a tourist visa, as per the decision by the Ministerial Council.

Visa delivery service to airport:

Visit visas and entry permits obtained by sponsors for visitors to UAE should be normally delivered minimum three hours in advance to the airport before the arrival of the visitor. Visitors will have to look for a DNATA or DNRD visa delivery counter at the Dubai International Airport or near the arrivals area.

Short Term Visa Types:

Other visit visas all of which require a deposit of Dh.1000 include:

Student Visit Visa

The student must be registered at the UAE University (for short-term courses) and should already hold a residence visa (for long-term course). It can be renewed twice for Dh.500.

Conference/Exhibition Visa

Is valid for 30 days for Dh.100 and is non-renewable

Medical Visit Visa

Is renewable for 90 days for Dh.500 and costs Dh.1000.

Property Visa

For most if not all of Dubai Property purchases, these pieces were suspended. Inquire with the appropriate government authority in Dubai with the master developer. Do not however take the word of the property developer or the real estate agent.

Investor Visa

For Expats who invest a minimum of Dh.70,000 share capital under a business partnership with a UAE national. This visa has a 3-year validity with a visa fee of Dh.300.

Mission Visa

There are a couple of types of mission visas in Dubai and UAE area. A 90-day visa (be careful, that’s not necessarily three months) is called a mission visa and it is for the express purpose of permitting expats to be employed there for short time; it is also for probationary workers. The sponsoring company applies for it at the department of labor. It may be multi-entry and/or renewable. A visa for special mission entry is good for 16 days and is referred to as a Dubai transit visa (do not confuse this with the transit visa that is good for 96 hours). It is good only for single entry and cannot be renewed.

Parent Visa:

UAE residents can sponsor parents for a period of one year, which could be renewed under special permission from the FNRD. A refundable deposit of Dh.5000 (per parent) and visa fee of Dh.100 will be charged.

Kindly note: Visa rules are subject to sudden change without warning. The UAE Embassy in your country or the Dubai Naturalisation and Residency Department (DNRD), the relevant authority in the UAE, is the only source of information that can be relied upon. The validity period for a free visit visa on arrival change often.

Where to get best dirham-rupee remittance exchange rate in UAE

Most money exchange houses in the UAE have long queues as the Indian rupee crossed the Rs15 to a UAE dirham barrier, but some exchanges are offering better rates than others.

Emirates 24|7 did a spot check on some of the exchanges in the country to check the rates on offer for the Indian rupee versus the dirham.

Of the prominent ones, LuLu Exchange seems to be offering the best deals.

At 10.30 am today, the executive at the exchange said the rupee rate was Rs15.12/per dirham and if the amount to be remitted was higher (Dh50,000 as quoted by the website) he could give a better rate of Rs15.13.

UAE Exchange, on the other hand, said it was offering Rs15.04/dirham and the rate could go up to Rs15.1/dirham if the amount was Dh50,000 and above.

Thomas Cook Al Rostamani Exchange, at around 10.30am, was giving Rs15.03/dirham but was willing to offer Rs15.07/dirham if the amount to be remitted was higher.

Al Ansari Exchange gave a uniform rate, which remained the same irrespective of the amount to be remitted. At 10.30 am, the rate offered was Rs15.06/dirham.

With the Indian rupee slumping to its worst ever exchange rate against the US dollar - and, therefore, the UAE dirham and other dollar-pegged Gulf currencies - Indian expats in the region are taking advantage of sending home as much money as possible.

The rupee once again hit fresh lows this morning, trading at Rs15.23 against the UAE dirham (Rs55.92 against $1) at 10.30am UAE time (6.30am GMT) on Wednesday, May 23, 2012 and if expert comments are to go by, the currency could lose more value in the future, with some seeing Rs16/dirham a possibility.

 

Glass walkway to connect Burj Khalifa with Dubai Metro

820m long pedestrian link planned for visitors

The world’s tallest building, Burj Khalifa, is set to meet its match in the shape of an almost equally long glass walkway that will directly connect the iconic tower and the adjoining Dubai Mall with the Burj Khalifa/ Dubai Mall Metro Station.

In a statement Tuesday, Emaar, the master developer of Downtown Dubai which includes Burj Khalifa, Dubai mall and a host of other iconic attractions, said its Emaar Malls Group had launched a project to build an 820-metre long (just 8 metres short of the Burj Khalifa itself) glass-encased pedestrian link.

The Dubai Mall Metro Link, to be constructed by Dutco, will have five travelators, or moving walkways, in each direction – ten in all – with the air-conditioned and automated walkways capable of ferrying more than 13,500 individuals every hour. There will be a central walkway that will give additional space for pedestrian use.

Mohamed Alabbar, Chairman, Emaar Properties, said: “The Dubai Mall is one of the most visited tourist, retail, and leisure destinations in the world. While the mall offers covered parking for over 14,000 vehicles, we have been evaluating various alternatives to further streamline visitor traffic and add to their convenience. The Dubai Mall Metro Link will also serve visitors to Burj Khalifa and the various attractions in Downtown Dubai.”

The travelators will move at an average speed of 0.5 metres/second, starting at the Burj Khalifa/The Dubai Mall Metro station entrance pod and travelling through the Downtown Dubai development before connecting directly with The Dubai Mall.

Scheduled to be operational in 2013, ‘The Dubai Mall Metro Link’ is one of the longest pedestrian walkways that links the Dubai Metro with any retail development, and is expected to significantly enhance the convenience of visitors to the mall and Burj Khalifa, Emaar said. It is also billed to reduce vehicular traffic within the immediate vicinity of the mall, located in the heart of Downtown Dubai, the flagship mega development by Emaar Properties, described as ‘The Centre of Now.’

“The Dubai Mall Metro Link will contribute to the sustainable transport initiatives developed by the Dubai Government. At its peak capacity, the travelators can carry over 13,500 people per hour, and is being developed to the highest international standards. It has been designed to accommodate maximum visitor traffic, both to The Dubai Mall, Burj Khalifa and to Downtown Dubai, especially during the festive season,” Alabbar added.

With The Dubai Mall Metro Link, visitors will have an air-conditioned passage from the Metro to the mall. Allowances are also being made for future connections to Emaar Square and Boulevard Plaza offices and linkages with the Emaar Boulevard, which hosts several lifestyle events including the popular Emirates Classic Car Festival. Pedestrians also have the option of using The Dubai Mall Metro Link, even if they are not Metro passengers.

The Dubai Mall Metro Link is elegantly designed in glass with views of the Downtown Dubai development including Burj Khalifa. It will also open a new marketing avenue for multimedia advertising displays along the walls of the pedestrian link. Designed with the highest safety features, The Dubai Mall Metro Link will incorporate add-on features such as exit routes along its length and access stairs.

Rupee edges to 2012 low: Your dirhams could soon fetch Rs15.25

Rupee edges to 2012 low: Your dirhams could soon fetch Rs15.25

Swiss bank UBS says the rupee could hit 56 to the dollar on the back of India’s severe deficit drag

The Indian rupee is currently at Rs14.39 against the UAE dirham, with rising dollar demand from importers and a weak economy expanding an already wide fiscal deficit.

The rupee traded at Rs52.89 against the US dollar on Wednesday, a little lower than the 2012 low of Rs53.30 that it made on January 3, 2012.

While the rupee recovered some of its losses next month, rising to Rs48.60 against the US dollar by February 4, 2012 (Rs13.23 against Dh1), it has since lost 9 per cent in three months.

With global ratings agency Standard and Poor’s maintaining a negative outlook on the Indian economy, analysts maintain that the rupee could soon fall to Rs56 against $1, or Rs15.24 against the dirham.

According to Swiss investment bank UBS, the rupee could hit 56 to the dollar, which would mark a record low. The bank cited the prospect of slowing flows on the back of India’s “severe” deficit drag, the need to “repair” its balance sheet and regulatory ambiguity that has reached a “crisis point.”

“In these conditions, there is very little policy easing. So companies and government must now become more efficient if they want to retain/induce that extra dollar from overseas,” UBS economist Philip Wyatt said in a recent report.
Last month, UBS downgraded India’s shares to ‘neutral’ from ‘overweight’, saying China is a better bet.

Experts maintain that the ongoing policy paralysis at the central government level in India and a rising imports bill are factors that will continue to put pressure on the beleaguered rupee, which recently made a lifetime low of Rs14.62 versus the UAE dirham on December 15, 2011.

Further, India’s apex bank, Reserve Bank of India (RBI), which has in the past come to the rescue of the rupee whenever there have been sharp movements in exchange levels, is being seen as a passive onlooker this time around by traders, who believe that the RBI may be lacking the inclination and, more importantly, the firepower to make any substantial difference to rupee’s levels.

Global risk-aversion on the back of concerns that the Euro Zone could slip back into another recession are making international investors shy away from making any fresh investments in emerging markets such as India, leading to the rupee being one of the main under-performing currencies over the past month.

“Not much is likely to change in the near term. We do not expect RBI to intervene aggressively, but it will continue with its intervention strategy of only stepping in to curb excessive depreciation without defending a particular level,” Abheek Barua, chief economist of HDFC Bank, said in a note.

 

Rents hiked as Al Tayer fire-victims look for place to stay

Trust sharp businessmen to exploit a tragedy. And this is what seems to be happening in Al Nahda area of Sharjah in the wake of a major fire at the locale's prominent Al Tayer building.

A fire early on Saturday morning has rendered some 2,500 people homeless for the past three days. Unwilling to overstay their welcome with families and friends, quite a few of them have been out looking for alternate accommodation in neighbouring buildings - especially tenants of the 8 and 9 series of apartments - the worst affected by the fire.

Tenants have been allowed to visit their apartment to inspect fire damage and to salvage essentials, but they have not yet been permitted to live in their flats on safety concerns. Electricity and gas supply also remains disconnected.

"I want to live in the same area as I have my life sorted out with facilities in the area such as restaurants, grocery, laundry, car-lift etc. My children have friends there and we are happy there. But when I went to a neighbouring building they had raised the rent of their 2-bedroom apartment by Dh5,000 since the fire," said a Al Tayer resident.

"I had been interested in that building as its facilities are superior. I have been keeping track of rents there as I was going to move out from Al Tayer building in July this year and had already budgeted for the rent which was Dh42,000. On Monday, when I went there, they offered me the same 2-bedroom flat for Dh47,000 with a take-it-or-leave-it attitude," he said.

"I cannot stay in our old building anymore. I just can't. We have lost a lot in the fire, we have not been able to go to work, our lives have changed and these people are just interested in what they can get out of people who are already in trouble," added his wife.

Another resident said he had gone to look for an apartment in an adjoining building.

There the rent was raised by Dh2,000 since the fire.

"The only buildings that continue to offer the same old rent are the ones that we cannot live in. They are mostly used to accommodate large number of sharing' bachelors and we are family people," he said.