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Emerging markets
emerge winners
As one looked forward to a
relaxed Eid holidays, came the shocking news of Dubai World
asking its creditors for a standstill agreement till May 2010,
for restructuring debt worth $26bn. The developments affected
sentiment across the globe – stock markets across the world fell
by five per cent on fears that this could delay the economic
recovery for much longer. Moody’s and S&P immediately cut their
rating for Dubai-based government related entities and placed
them on credit watch. In a world where perceptions matter more
than reality, the crisis has given a body blow to the emirate’s
reputation as a destination of choice for tourists, investors
and capital. The ramifications of the problem goes much further
than what meets the eye.
Greece, Ireland and Hungary with their high levels of debt have
been among the countries that were hardest hit by the Dubai debt
scare as investors punished their markets amid fears of
contagion. The old rules of selling emerging market assets and
buying traditionally safer developed world markets in times of
crisis have been turned upside down following the debt
standstill in the emirate. In contrast, emerging market bonds
from China and Brazil saw inflow as investors treat them as
havens because of their healthier public finances.
This underlines the changing dynamics of the global economy as
risks of high debt in the industrialised world have become one
of biggest concerns for investors. Many emerging market
economies because of their low debt levels and prudent economic
management are perceived to have weathered the financial crisis
far more effectively than their rich nation peers.
While the emirate’s debt standstill may turn out to be a small
blip for the global economy, it has reawakened one of the
biggest concerns of investors – the high debt burden of many
countries.
Oman has largely escaped a contagion effect, due to its limited
exposure to Dubai. The corporate sector in the Sultanate,
though, has its own set of concerns – the latest being the
government’s drive to raise Omanisation levels across sectors.
Businessmen aver that they need more time to fill the requisite
numbers and a sudden imposition would jeopardise their business.
Our cover story gives you an in-depth take on the issue.
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January - 2010 |
| Cover
Story |
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Striking
the right note
Moulding the manpower
matters with simple solutions has never been easy. But with the ministry
getting into the act to set Omanisation in order, businesses have
to buck up. A report by Visvas Paul D Karra |
Editorial
Emerging markets emerge winners
As one looked forward to a relaxed Eid holidays, came
the shocking news of Dubai World asking its creditors for a standstill
agreement till May 2010, for restructuring debt worth $26bn. The developments
affected sentiment across the globe – stock markets across the world
fell by five per cent on fears that this could delay the economic
recovery for much longer. Moody’s and S&P immediately cut their
rating for Dubai-based government related entities and placed them
on credit watch. In a world where perceptions matter more than reality,
the crisis has given a body blow to the emirate’s reputation as a
destination of choice for tourists, investors and capital. The ramifications
of the problem goes much further than what meets the eye. |
| Other
Headlines |
|
Sand Castles
The Dubai debt crisis has put a question mark on the sustainability
of the emirate’s build-and-they-will-come development model. Mayank
Singh reports |
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The coming rise in interest rates
If the US Federal reserve decides that inflation is its
greatest threat and decides to stop the pumping of cash into the banking
system then the 1994 history could repeat itself with a vengeance
in 2010 |
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Competitive regional hub
MOROCCO provides an excellent platform for reaching a
wide range of international markets due to its geographic location
and cultural ties |
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Understanding different cultures is very important
Abdul Rahman Busaidy is probably the only Omani, who looked
east by landing a top position at Jet Airways, an Indian company.
But then boundaries have never been a barrier for him, writes Visvas
Paul D Karra |
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Simplicity begets success
Taking charge of a mobile reselling company which is on
a roll is by no means an easy task, but Joakim Klingefjord, CEO of
renna, has his task cut out, finds out Visvas Paul D Karra |
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The Yemen Question
It has become clear to GCC officials and international
observers that the collateral damage from conflicts cannot be easily
contained within Yemen’s borders |
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Emerging markets – way to go
David Bloom, Global Head of FX Research, HSBC, was in
Oman to deliver his annual address on currency movements and the outlook
on the world economy in 2010, recently. Mayank Singh catches up with
him on the sidelines of the event |
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GCC’s extraordinary hydrocarbons resources
The hydrocarbons sector largely stands behind GCC’s financial
capability. Latest estimates put the value of sovereign wealth funds
of GCC states at $1.5trn |
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A school with a difference
Professor S Sundararajan, Dean, Gulf School of Business,
shares with Mayank Singh the roadmap of the institute and how it will
contribute in fostering better management practices in Oman |
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A lifestyle statement
David Crickmore, CEO, Amouage speaks to Mayank Singh about
the brand’s foray into leather goods, its retail strategy and his
aspirations about being on the same table with internationally reputed
luxury brands like Gucci, Prada and Louis Vuitton |
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Pre-eminent position
OER became the first of the media to catch up with Omar
Adli Al Sharif and congratulate him on becoming a partner in PricewaterhouseCoopers
Oman |
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A Success Story
Haitham M J Al Lawati just turned 30 last month but despite
his young age he has achieved success that take most people many more
years to achieve. OER chats him up to just to see how he has accomplished
such a feat |
| Regulars |
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