business-data | Edakulathur Michael Johnson

A new YouGov/ Gulf News poll was released on the UAE’s inflation. The report suggests that standards of living are falling due to high inflation without commensurate pay increases. Inflation estimates from the poll include accommodation (27%), foodstuffs (20%), healthcare (18%), education (20%) and transportation (25%). These figures stand in stark contrast to the Central Bank’s estimates of about 7% for commodities.

TNT expects 20% growth in express delivery market By Shakir Husain, Staff Reporter Dubai: Express delivery and logistics company TNT expects its business to grow 25 per cent in the UAE this year. According to a senior company official, the industry will see a growth of 15 to 20 per cent. This growth trend will be visible across most countries in Asia, TNT regional vice-president Jinendra Sancheti told Gulf News. "World trade is shifting eastwards. Physical volumes of goods are shifting to the East," he said, referring to increase in imports by Asian countries. He said rising commerce would create "exceptional" growth in the express delivery market. Netherlands-headquartered TNT is investing more than Dh10 million in the UAE this year to expand the network and increase its geographical presence. The company is building a Dh4 million warehousing and distribution facility in Dubai Airport Free Zone. "We are investing in all key emerging markets under a $100-million, five-year plan. Dubai is an important economic zone of emerging markets," San-cheti said. TNT has opened a new Middle East road network hub in the south of Jebel Ali Free Zone. The facility will be used to process road shipments to Qatar, Saudi Arabia, Bahrain, Kuwait, Oman and Iran. The company will also build a 5,000-square-metre facility that will house the Northern Emirates collection and deliveries. Possibilities of establishing a presence in the upcoming Logistics City are also being evaluated. TNT's planned expansion is expected to increase its UAE workforce by 20 per cent next year. "We are expecting a growth of 25 per cent in our UAE business. The express market itself will see an average growth of 15-20 per cent over the next few years," Sancheti said. While acquisitions remain part of the company's growth plans, TNT does not see the region throwing up such opportunities. "There are only limited opportunities. Acquisitions are not simple in the Middle East," the official said.

The data picture is sourced from Shuaa Capital.

United Arab Emirates Pharmaceuticals & Healthcare Report Q4 2004 © Business Monitor International Ltd Page 3 Executive Summary Market Summary The UAE is one of the most developed markets in the Middle East, with per capita expenditure at around US$120 in 2003. Market growth should be steady in the short term, with spending set to reach around US$575mn at consumer prices by 2007. Branded medicines dominate the fiercely competitive, highly priced market, and account for over 90% of spending. Market Forecast The UAE pharmaceutical market can be expected to continue to grow steadily in the short term, given the sector’s developed nature; high demand for modern, hi-tech healthcare; and high prices ensuring annual growth of around 8-10%. The market is likely to reach around US$575mn at consumer prices by 2007, equal to US$150per capita. Prescription and OTC Drugs Prescription drugs dominate the UAE’s pharmaceutical market, accounting for around 90% of expenditure, with high demand for modern treatments. This domination should continue in the future, with prescription spending forecast to increase starkly from US$378mn in 2003 to reach almost US$520mn in 2007. The OTC market is also expected to grow notably, albeit from a much smaller base, from US$42mn in 2003 to US$58mn in 2007. Generics The underdeveloped generics market is growing, largely as a result of local industry development, but still only accounts for approximately 5% of pharmaceutical spending. The generics market is expected to grow from US$21mn in 2003 to reach US$28.8mn in 2007. Competitive Environment Foreign investment in the UAE is following a steady upward trend, with UK-based drug giant GSK, Swiss drug major Novartis and US multinationals Wyeth and Johnson & Johnson all revealing expansion plans for the domestic market in 2004. Regulatory Developments The UAE and US government have recently initiated discussions over a possible US-UAE FTA. If an agreement is signed, it is likely to involve a notable tightening of domestic pharmaceutical legislation, a development that could spark an acceleration of foreign investment. Talks, however, are at a very early stage. The UAE’s WTO obligations, with reform due before 2005, should bring a more immediate improvement in conditions for foreign companies and should act as a catalyst for an increase in investment.

Empost's profit rises 59% Staff Report Dubai: Postal services company Emirates Post has announced a 31 per cent increase in first quarter revenue and a 59 per cent increase in profits. The UAE's official postal service company earned an income of Dh117.7 million from January to April this year and made a profit of Dh64.5 million. Sultan Saeed Al Mansouri, Chairman of Empost, attributed the company's improved performance to the successful launch of its value-added services through its subsidiaries. The company's diversification strategy saw the launch of subsidiary company Emirates Marketing and Promotions. It also completed a Dh48 million acquisition of a 60 per cent stake in the money transfer company Wall Street Exchange Centre. Empost Director-General Abdullah Al Daboos said, "The horizontal expansion of our services is reflected in the launch of improved parcel and remittance services to all parts of the world. Stronger partnerships with the private sector and dedications of our staff point to a robust financial performance during 2006." On Empost's diversification, he said it reflects the company's aim to use its vast postal network to launch a variety of non-postal services including logistics, cargo and financial services.

Sharjah container volumes rise Staff Report Dubai: With more shipping lines and their customers using Sharjah Container Terminal (SCT), container volumes have increased significantly, according to the company that manages the terminal. In 2005, SCT handled more than 230,000 TEUs (20-foot equivalent units), 24 per cent higher than the previous year, Gulftainer said. "In the last two years new record throughputs have been achieved," it added. Throughputs in 2006 so far are already considerably higher than those of 2005 for the same period. The January-April volumes rose 33 per cent over the corresponding period last year. "New records continue to be set each month and in April alone containers handled were 45 per cent higher than April 2005," said Gulftainer, which operates SCT and Khor Fakkan Container Terminal (KCT) on behalf of Sharjah Port Authority. "The remarkable econ-omic growth of the UAE has meant that many shippers and consignees now find that it is good to have a choice of container ports to cater for their specific needs dependent on their businesses and their locations in the country," Gulftainer operations manager Peter Richards said.

Foreign direct investment in UAE doubles By Stanley Carvalho, Staff Reporter Abu Dhabi: Foreign direct investment in the UAE doubled last year to $18 billion and is likely to go higher as the economy opens up and new laws come into force, the Minister of Economy said yesterday. "The UAE attracted $18 billion FDI in 2005 and besides being an oil economy, the investments side is large," Shaikha Lubna Al Qasimi said on the sidelines of the German-UAE Economic Forum. "The new laws and changes enhance further openness between the UAE and other countries, facilitating more direct investments." She said tension over Iran's nuclear programme had no negative impact on the flow of investment into the country. She said the UAE had become the third largest re-export centre in the world, reaching out to about a billion consumers. The UAE is aspiring for investments and technology from sophisticated markets, the minister said. "The UAE has 50 per cent of its GDP from the services sector and we require knowledge enhancing investments such as transfer of technology," she said, adding that a lot of German technology has been introduced here. German Minister of Economy Michael Glos said though exports to the UAE had been rising, there was potential for more. Glos met General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and discussed ways to boost bilateral ties.