NEWS FROM THE UAE
Excerpts from UAE Dailies

UAE inflation surges 9.3pc

DUBAI — JUN 21: UAE’s inflation surged 9.3 per cent in 2006, driven largely by soaring housing costs and the impact of the falling value of dollar, the Ministry of Economy said. The ministry, revising slightly downwards its October 2006 inflation forecast of 10 per cent, said the surge in inflation, from 6.3 per cent in 2005, was because of a steep increase of 15.3 per cent in housing costs, which represented 36.1 per cent of household expenses, in 2006.

While transport and telecommunications costs — with a weighted average of 14.9 per cent on the Consumer Price Index (CPI) — increased 9.5 per cent  in 2006, food, drink and tobacco prices, accounting for 14.4 per cent, rose 5.6 per cent.

Furniture and education costs, recorded the smallest increases, at 2.4 per cent each. The CPI comprise eight groups household expenses.

While a 31.5 per cent fuel price hike in 2005 triggered a price increase, the surge in 2006 was caused by rent increases as housing supply fell short of population growth.

According to the ministry statistics, while housing units grew from 404,430 in 1995 to 789,646  in 2006, population grew from 2.4 million to 4.1 million in the same period, leading to a steep rise in rents.

According to the ministry, the falling value of the dollar, to which the UAE dirham is pegged, also made goods and services imported from Europe more expensive.

Shaikha Lubna Al Qasimi, Minister of Economy, said in the statement that the government is trying to bring down inflation through measures including forcing companies to reduce prices.

The Ministry of Economy has placed caps on rents, cinema tickets, baked goods, animal feed, juice and dairy products, and cement this year in a bid to contain inflation.

Shaikha Lubna said the Gulf region has been witnessing a higher rate of inflation on the back of surging oil prices and the repatriation of Arab capital from overseas.

“The inflation number is high but not surprising considering the rate of demand growth, supply constraints, and high levels of liquidity in the economy,” Simon Williams, an economist with HSBC Holdings Plc., was quoted by Bloomberg.

However, economists and analysts hold a different view and believe that the underlying inflation in the UAE could be between 18 per cent and 20 per cent.

The International Monetary Fund (IMF) said the influence of rents is being underestimated in consumer inflation in the UAE. The rent weightage of 36.1 per cent in the consumer price index basket is based on a survey conducted in 1994, the IMF said while pointing out that it was concerned about the lack of any official data in the UAE to monitor inflation.

Mohsin Khan, Director of the IMF’s Middle East and Central Asia Department, said the UAE’s inflation, which was predicted to be an average of 9.9 per cent in 2006, is being underestimated because it is calculated using an outdated formula.

“Rents are the primary cause of the UAE’s high inflation,” he said recently.

Khan said inflation rates in the GCC — where GDP is expected to grow at a slightly slower pace in 2007 as oil prices and output drop — should ease in 2007 amid a cooling in real-estate prices.

“We believe inflation will slow down in both the UAE and Qatar, but any declines will be marginal. We initially expected inflation to drop more, but now we believe it will only drop marginally,” he said.

According to IMF, inflation in the UAE is expected to fall to 8 per cent in 2007. Price growth in Qatar will fall by 1.8 per cent to 10 per cent over the same period, according to the IMF.

“Growth is still very strong in both countries, and it is maintaining inflation rates up but its gradually decreasing,” he said.

HSBC bank also predicted that UAE’s annual inflation rate would be seven per cent in 2007, dropping to 6.5 per cent in 2008.

Maintaining that increased spending is fuelling inflation, IMF said inflation for all the Gulf states combined would fall to 4.3 per cent in 2007 as more supply of housing becomes available in the UAE and Qatar, which had the Gulf’s highest inflation in 2006.

According to UAE Central Bank Governor Sultan bin Nasser Al Suwaidi, inflation in the UAE comes mainly from higher rental rates, is expected to subside as new housing units and office space come to the market in a few months from now.

Morgan Stanley argues that the official GCC inflation data significantly understate the actual level of inflation, as services are significantly underweighted in the price indexes.

Other shortcomings, at least in the UAE, include the lack of imputations for missing data and different reference periods for the base price and expenditure weights.

In the GCC, the lowest inflation rate is in Saudi Arabia, at 1.79 per cent in 2006, and highest rates are in the UAE and Qatar where population growth has outpaced the provision of accommodation, resulting in a sharp increase in rents, Institute of International Finance said.

Economists believe that a seven per cent rent cap that came into effect in January is also not expected to curb UAE inflation to a great extent.

According to HC Securities, the devaluation of the US dollar against other currencies and the heating up of the economy have also rippled through the UAE economy in the form of higher prices

KHALEEJ TIMES

Anti-Salik feelings find expression on Internet

DUBAI — JUN 21: “We don’t need Salik in Dubai. Leave it tax-free, Salik-free, crime-free. How many more crimes will come up to pay for Salik? Think. Go away Salik.”

This is just one of the many entries posted online by a Dubai resident. With the Roads and Transport Authority all set to introduce Salik, the new road toll system from next month, a majority of the people are quite unhappy and critical of the new system.

The latest way to show their displeasure is the Internet where people are posting anti-Salik statements in large numbers. The opinion polls have been posted in two of the petition sites and are turning a lot of heads at the moment. The general view favours scrapping of the toll system for the time being, more time allowance for people to understand it and reduction of toll charge.    Shyam Krishnan, an employee with Oracle, who posted a link at the ‘petitionspot.com’ against Salik said, “I wanted to make the people write their comments on Salik. I think that the whole thing has been a hurried affair. Salik should be postponed for the time being. And the petition has received many comments so far with all talking the same. The RTA should give more time to the people to understand the complexities of the tolling system. And the gates should be for certain areas like the heavy traffic zones or the fast lanes. In addition to this, the toll fee is also very high which will have a bad impact on the taxi fares. The same can be said about other forms of transport, too. I don’t think that it is going to do any good.”

Another link posted at ‘petitiononline.com’ has already got more than 3,000 entries. People are demanding reduction of toll tax from Dh4 to Dh1. Advice is also being given to the RTA to first be over with their ongoing projects like the Dubai Metro before the introduction of Salik. Then, there are some who are talking about Salik being a clear money-minting exercise and some even demanding carlifts to be made legal for reducing traffic.

Similar anti-Salik statements have also been posted in ‘Zoglo.com’. “These remarks and suggestions show that people are not ready for Salik. This new toll system will never be able to reduce the traffic. The RTA should consider this for the welfare of the people of Dubai. Otherwise the middle class people would suffer even more,” said Harish Sandhu, who works in Dubai Media City.

The RTA officials stated that though people had the freedom to have their say, they should use the RTA official website to post their comments and suggestions.

“We have an official website and people can click into the ‘feedback and suggestions’ section and post their comments. And the RTA will look into it. Salik is aimed at reducing the excessive traffic in Dubai and to give a breather to the daily commuters,” said an official spokesperson.

KHALEEJ TIMES

DSS fiesta opens today with much to offer for one and all

DUBAI — JUN 21: The much-awaited Dubai Summer Surprises, which opens in Dubai today, is surely set to enthral visitors, tourists, and residents with its 72 days of fun and entertainment activities offered at various shopping malls and other popular venues in the emirate.

Celebrating its tenth anniversary this year, DSS organisers say the summer fiesta is poised to attract over 2.16 million visitors, an increase of 15 per cent from last year. Besides, an increase in visitor expenditure is predicted to cross the Dh3 billion mark, a 20 per cent increase on last year’s figure.

Running until August 31, the 10-week fiesta will have all the surprises of this year’s edition kick off simultaneously, and run for 72 days instead of dividing them over 10 weeks as was the case in the past editions, where one week was allocated to each surprise. Besides, the 10 surprises have been planned to cater to every age category, including children, teenagers, and adults.

A new addition has been made to the 10 Surprises this year, Comedy Surprises, which will showcase laughter in its best forms. The other surprises include Food, Heritage, Art, Flower, Knowledge, Cartoon, Nature, Adventure, and Global.

Preparations have been in full swing at shopping malls, Dubai airport and the Airport Expo for weeks, with placards and advertisements and the all-time favourite mascot, Modhesh, himself promoting the fiesta. Among the many venues, residents and visitors can catch the Best Of Dubai Summer Surprises (DSS) action at the Modhesh Fun City at Airport Expo.

The Modhesh Fun City with its 30,000 sq mt area will offer the Best Of Entertainment, Fun And Learning Opportunities, returning to the sprawling Airport Expo Dubai with bigger attraction.

The largest indoor theme park of its kind in the region, the Modhesh Fun City opens its doors to the public today with a grand 10th year opening celebration of DSS 2007. Traditionally, the Fun City has been the venue for major DSS themed weeks’ openings, mega shows and national celebrations since its inception in the year 2000. Built annually during the summer, the large indoor facility offers fun, entertainment and learning opportunities to hundreds and thousands of guests, including children, teenagers and adults.

Bigger scale

Says Yousif Mubarak, DSS Events, Operations and Services Director: “Coinciding with the 10th anniversary celebrations of DSS, Modhesh Fun City this time around has been built on a much bigger scale. The total area of this unique recreational facility is 30,000 sq mt which will house several zones, including some new ones such as the Story Teller Zone, Library and Pet Zone. The zones have been so designed so as to cater to a wide spectrum of interests.

“While the Fun City mainly caters to children, it has dedicated leisure and relaxation areas for their parents in the form of a Family Food Court, kiosks and a coffee shop. The Fun City, with its larger premises, is equipped to handle large crowds especially on weekends and of course, there is ample free parking available for ease and convenience of the visitors. We invite everybody to come and have a first hand experience of the new-look Modhesh Fun City,” adds Mubarak.

Based on the theme of Fantasy of Modhesh, the all-time favourite DSS mascot, the Fun City is decorated predominantly in blue, green and yellow. Welcoming the guests at every step would be the main host Modhesh in various shapes and sizes. In fact, the guest welcome begins right from the bridge entrance on the main road towards Airport Expo where they will find Modhesh ushering motorists in with a Modhesh Fun City banner. The bridge leading towards the venue will also be decorated with colourful festoons, flags and Modhesh cutouts holding banners with Modhesh Fun City, Modhesh Saloon and Family Food Court, giving a fair idea to the visitors about what lies ahead.

New-look Modhesh Fun City

The Modhesh Fun City in its new look offers a lot more besides a refreshing and bright decor. The ceilings of the halls are in bright hues too, giving it a total funfair kind of look. The Central Hall is divided into various zones where children as well as their families can spend time playing, relaxing and having fun. There is the Library, Nursery, Lego Zone, Toddler Zone, Coffee Shop, Modhesh Store, E-zone, remote control cars, Mini Stage, Arts and Crafts, Hamtaro, Fulla inflatable play areas, Fencing, Story Teller Zone, Fun Fair, and Redemption Games. All throughout Modhesh will be present with banners and signs indicating the directions to the various zones and areas.

The exhibition hall square columns have branding banners with Modhesh exhibiting his various talents while the ceilings are adorned with colourful hangings complementing the theme of the Fun City.

The Library is well equipped with books for children of all ages. Younger ones will have colourful fancy furniture to sit and read some of their favourite stories. The Library leads to the Nursery Zone where children can spend time playing or just relaxing and reading under supervision of well trained staff. This is followed by the Toddler Zone and Lego Zone. The latter, with an area of 14m by 7m, has the entrance shaped as a big truck. Offering lego games and blocks appropriate for children of different age groups, this zone could be favourite for kids who want to exercise their architectural abilities. The Toddler Zone entrance with Modhesh sitting in a toy train and teddies flying with colourful balloons will surely attract the little ones. The toddlers can enjoy the toy cars, balls pool and the climbing wall in their own zone.

The Modhesh Store

Right next to it is the Coffee Shop where refreshments and snacks would be available with ample seating capacity. While the toddlers have a blast in the Toddler Zone, their parents can relax over a cup of tea or coffee. The Modhesh Store built in a circular shape will be stocked with Modhesh merchandise, including stationery items, games and toys, beach items and gifts and souvenirs among others.

The Tech Zone or Remote Control Car Zone will follow next. The area of this zone is 11m by 21m and will have computers for games and remote control cars in a designated area for children to play with.

Next in line is the Mini Stage to host some interesting programmes followed by the Arts and Crafts Zone. Modhesh will be holding a set of colours with smiling colour palettes, welcoming visitors to this zone. The zone hosts art and craft activities as well as training and entertainment under the supervision of one animator and five volunteers. Decorated in bright colours, the ‘animal chairs’ for children to sit down are particularly fascinating.

Riot of Colours

There is Hamtaro and Fulla – the inflatable play areas for kids and fencing areas by Dubai Fencing Federation. Then there is the Story Teller Zone where children can listen to their favourite stories. Redemption Zone and Balloon Zone are located next. Modhesh Studio, Modhesh Saloon and Modhesh Stores are situated in the East Exhibition Hall flaunting fun decor and a riot of colours.

KHALEEJ TIMES

Three face trial for coercing woman into flesh business

DUBAI — JUN 21: The Dubai Criminal Court on Tuesday started the trial of 29-year-old Indian woman T., another 25-year-old Indian M.K., and 27-year-old Pakistani Z.S. on charges of human trafficking and physical assault of 23-year-old unemployed Indonesian woman K.S.

The Indonesian woman who escaped from the clutches of the three accused after a police intervention, had filed a complaint that she was forced by them into the flesh trade.

During the police interrogation, K.S said she escaped from her sponsor’s house after one of her woman friends advised her to leave the sponsor to get a better job.

She said she initially stayed with a woman who handed her over to two Bangladeshi nationals. The two Bangladeshi men in turn allegedly ‘sold’ her to two Indian nationals in Al Ain, who later, allegedly, offered her to T. and M.K. in Dubai for Dh4,300.

The Indonesian woman alleged that T. and M.K., along with Z.S., took her to several vice dens in Dubai. She said they used to beat her every day to coerce her into prostitution.

However, the woman managed to flee after a police source helped her escape from the flat she was being put up. She filed a police complaint against the three accused at Rafa Police Station in Bur Dubai.

The police set a trap and arrested T. red-handed while offering the victim for Dh4,300 to a police decoy.

Z.S., unaware that T. had been arrested, agreed to offer the victim for Dh3,000 to the police CID official. But he too was caught red-handed and was arrested in Al Baraha area. 

During the interrogation, T. confessed she had paid Dh4,300 for the woman and Z.S. confessed he had offered the same woman to the police decoy.

The forensic report confirmed the Indonesian woman had been beaten up and she underwent 20 days medical treatment in connection with the injuries she had sustained during her physical assaults.

KHALEEJ TIMES

Employer should pay sponsorship transfer fee

ABU DHABI — JUN 21: Minister of Labour Dr Ali bin Abdullah Al Kaabi yesterday said that instead of workers, sponsorship transfer fee should be paid by employers and sponsors.

The minister stressed that the workers are not supposed to pay any fee in order to complete formalities regarding issuance or cancellation of labour cards, healthcare, visas and transfer of sponsorship.

Dr Al Kaabi was speaking during the open session at the Ministry of Labour (MoL). He met about 25 applicants who came to the session with their problems.

When a company owner asked Dr Al Kaabi to transfer a labourer’s sponsorship, the minister told him to pay the transfer fee, instead of asking the labourer to pay for it.  Dr Al Kaabi advised the owner to wait for two days till the approval of the unified fees to facilitate sponsorship transfer. The minister transferred many cases to the settlement and conciliation committee for action. The cases included requests for work permits, fine exemptions and sponsorship transfers.

KHALEEJ TIMES

Amnesty: More flights planned in September

DUBAI — JUN 21: Officials of the two Indian carriers, Air-India and Indian, yesterday said they would run additional flights for amnesty-seekers in September, if the situation demands.

Talking to Khaleej Times, senior officials of both the airlines said discussions were on with Indian consulate officials regarding concessional fares, too.

Abhay Pathak, regional manager of Indian, said, “We had meetings with Indian consulate officials. Our calculation says that the crowd would come in from September. At present, the condition is normal. But if they come, we would adjust them in our scheduled flights.”

He added, “There could be additional flights, too, if the situation demands. If the consulate wants, we are ready to open up a separate counter in the consulate from where people can inquire about the flights and also buy tickets. At present, we are not considering a discount in ticket prices.”

Air India officials, too, stated that the need of additional flights would be dealt with according to the situation. As Jayshree Ramachandran, AI regional manager, Dubai and the Northern Emirates, said, “Right now there are no amnesty-seekers coming in. After July, there would be plenty of capacity in the flights. We are discussing the possible decrease in fares and will take a decision by the end of this month. If we see a big rush, we have to think about other options, like additional flights. But at the moment, we don’t feel it is necessary.”

Meanwhile, the application collection centres set up by the Indian consulate all across the country, are being visited by amnesty-seekers in large numbers.

KHALEEJ TIMES

du sets an example in mobile recycling

DUBAI — JUN 21: In support of the National Mobile Recycling Initiative recently announced by EnviroServe and the Telecommunications Regulatory Authority (TRA), du has launched a campaign among its staff encouraging them to donate their old or used handsets.

A number of mobile phones have been gathered at collection points located in du offices in Dubai Media City Building 14 and Shatha Towers.

The recycling campaign has been launched with a view to ensuring that mobile phones do not end up in landfill and damage the environment, with the slogan “Don’t let your old or broken mobile phone damage the natural beauty of the UAE.”

Phones, batteries, chargers and accessories which are beyond repair are recycled, and the plastic components are used in the manufacture of traffic cones, bin liners or buckets. Metals such as copper, platinum, silver and gold are extracted through waste-to-energy processes.

Batteries are also recycled, and are put to use in jewellery, new batteries, copper pipes, or sometimes even in mobile phones again.

Commenting on the milestone initiative, Osman Sultan, chief executive officer of du said: “The telecom sector has the potential to offer many social benefits, including minimizing travel, energy saving, reducing pollution and recycling. By incorporating recycling and conservation efforts into our every day routine, we can ensure a safer world for our children.”

Sultan added: “It’s important to consider the whole life cycle of a telecom device such as the mobile phone and understand its influence on nature, while it is being used and when it reaches the end of its life cycle. For example, a mobile battery can pollute 600,000 litres of water.”

KHALEEJ TIMES

Need to fight cyber crime stressed

ABU DHABI — JUN 21: Zayed University (ZU) and Abu Dhabi Police organised a ceremony on Tuesday to honour 19 officers of Abu Dhabi Police who completed the ‘High-Tech Crime Investigation Professional Certificate Programme’ launched at ZU in cooperation with the George Washington University of the US.

Brigadier Mohammed Al Awadi Al Menhali, Director-General of HR in Abu Dhabi Police, said, “The Abu Dhabi Police Headquarter never spares the efforts to develop the police officers’ skills to meet new challenges. This programme came in light of the directives of the UAE leaders to enhance security in the country.”

Dr Eva Vincze, Director of the High Tech Crime Investigation Programme at the George Washington University, said, “The problem of cyber crime has reached global proportions and no one is safe any longer from the threats of hacking, identity theft, fraud, invasions of privacy or even terrorism.”

“No one group  or nation can effectively fight this threat. It is vital that the law enforcement agencies of the world come together in a collaborative effort. With the successful completion of this Certificate Programme, the Abu Dhabi Police Department has taken the first step towards joining this fight. The students were highly motivated and we were incredibly impressed with their performance. We welcome them and know that they will be valuable addition to this virtual conflict. We look forward to a long and productive relationship with ZU and the Abu Dhabi Police,” added Dr Vincze.

Commenting on the event, Dr Dianne Martin, Dean of the College of Information Technology at  Zayed University, said that the officers learnt how to preserve and recover electronic evidence and perform the technical forensic analysis of the actual data and  technical  interpretation.

KHALEEJ TIMES

Building falls into busy road

 
ABU DHABI - JUN 21: Motorists and pedestrians on a busy Abu Dhabi street had a miraculous escape when a building marked for demolition collapsed yesterday afternoon.

The five-storey building at the junction of Najda and Khalifa Streets collapsed in a heap after workers demolishing it had left the site for their lunch break. The debris filled Najda Street, at the traffic lights opposite the Royal Le Meridien Hotel.

According to eyewitnesses, it was a lucky change of the signal that saved many lives. The building, which was situated right at the traffic junction, collapsed just after the signal had turned green and all waiting vehicles had crossed the junction.

Only a car approaching the signal sustained damage, though the driver escaped unhurt.

Had the structure collapsed when the light was still red, said bystanders, the debris and concrete slabs would have fallen over the waiting cars.

“It was about 2.55pm when I saw the building come tum bling down and lots of dust and huge concrete slabs falling on the street after the cars had crossed the signal,” said Mir Bassam, an witness.

“I saw a car approaching the signal as the building collapsed. But the driver was able to brake in time and make a quick U-turn to escape. Since the area was filled with dust, I could not see and thought the car was under the debris.

“When the dust cleared I saw the driver getting out unhurt, but his car was damaged,” he said.

Another eyewitness said even a slight delay in the signal turning green would have turned the area into a disaster zone.

“It was a miracle and a blessing from the almighty that saved many lives. This building was standing tall this morning, and see now – it is just a mound of debris,” said Murad Bukhsh.

The building was old and well known. It was known as the Adma-Opco (Abu Dhabi Marine Operating Company) building.

After the incident the flow of traffic was halted for almost two hours.

Immediately after the incident, Civil Defence teams and Traffic Police patrols were at the scene. Within two hours the road was cleared and traffic returned to normal.

A Civil Defence official, who asked not to be named, confirmed that there were no casualties reported.

He blamed the company responsible for demolishing the building for the accident and said an investigation will be launched to find out the cause behind the collapse of the building.

He also said the accident questions the safety and technical measures taken by demolition companies in the city.

 
 
EMIRATES TODAY

Work on bypass to begin soon
 
 
DUBAI - JUN 21:Work on phase three of the Dubai Outer Bypass is expected to start soon with the Roads and Transport Authority (RTA) awarding the Dh289 million project to a contractor yesterday.
The road, which starts from the Jebel Ali-Lehbab Road and extends 25km in the direction of Abu Dhabi, will have six lanes in each direction. The unnamed contrac tor will complete the third stage of the project as work is currently under way on phases one and two.

The total length of the new road is 72km, while the cost of construction amounts to Dh947 million.

 
 
EMIRATES TODAY

Girls jailed for theft
 
DUBAI - JUN 21: Two teenage girls have been convicted of shoplifting after being caught on surveillance cameras.  Iranian students FR and BI, both 19, stole accessories worth Dh1,950 from Debenhams department store at Mall of the Emirates, Dubai Misdemeanour Court heard.

Security guards watched as the girls placed the items in their pockets, then arrested them.The two were each jailed for a month and given a threeyear suspended sentence.

In a separate case TA, 33, from Pakistan, was arrested at the Carrefour store in Shindagha after being caught on camera taking three pens and a box worth Dh10.65.

He then picked up a can of juice and went to the cashier but paid for only the drink.

Security officers moved in, found the other items and he was arrested. He received the same sentence as the girls.

EMIRATES TODAY

Dubai - Beach perv deported

Dubai - Jun 21: A 24-year-old Jordanian man has been deported after being found pleasuring himself in public on Jumeirah Open Beach. Police discovered the pervert acting innapropriately while sitting under a tree and facing the beach shortly after returning from a swim.

He was immediately arrested for carrying out an inappropriate act in a public place and admitted the crime to Public Prosecution and when he appeared in court. Judges at the Court of First Instance ordered the man, known as MY and identified as a computer engineer, to be deported immediately from Dubai.

The court spared him a prison sentence stating that he was young and it was his first offence and that deportation was sufficient.

SEVEN DAYS

Hammered to death

Dubai - JUN 21: A mechanic brutally murdered his friend by hitting him over the head with a hammer after the pair argued about a holiday, a court has heard. The argument occurred after the victim asked for some time off work from the defendant’s brother.

After this was refused he returned to the garage he worked where he became involved in a slanging match with the defendant, during which time the victim is alleged to have threatened to assault him. The accused is alleged to have left the room to grab a hammer which he then used beat the victim to death with.

The victim’s body was then dumped in a used tyre store. The man denies all the charges against him.

SEVEN DAYS