DP World, the Dubai-based ports and logistics giant, said the real impact of Covid-19 will be seen from the second quarter onwards after it posted a 1.7 per cent dip in first-quarter shipping container volumes.
The ports operator warned that global trade and container volumes are forecast by industry analysts to decline in 2020, with estimates on the scale of the drop ranging from 3 per cent to 10 per cent, it said in a statement on Thursday.
"The real impact of Covid-19 will be seen from 2Q 2020 onwards," Sultan bin Sulayem, group chairman and chief executive of DP World, said. "The timing of any recovery is uncertain with trade expected to pick-up as and when global economic activity normalises."
DP World said it handled 17.2 million TEU (twenty-foot equivalent units) shipping containers across its global portfolio in the first quarter of 2020, with gross container volumes decreasing by 1.7 per cent year-on-year on a reported basis but up 0.3 per cent on a like-for-like basis.
At its flagship Jebel Ali port in Dubai, it handled 3.4 million TEUs in the first quarter, down 3.4 per cent year-on-year, due to a decline in lower-margin cargo.
DP World, which plans to return to full state ownership, will focus in the near-term on integrating its acquisitions to "drive synergies" and control costs to protect profitability given "the more challenging environment", Mr bin Sulayem said. It will also work on managing capital expenditure to preserve cashflow and maintain its investment grade rating.
"Overall, the outlook is a cause for concern, but we remain positive on the long-term fundamentals of the industry," Mr bin Sulayem said.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
UAE currency: the story behind the money in your pockets
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
Empire of Enchantment: The Story of Indian Magic
John Zubrzycki, Hurst Publishers
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How to get exposure to gold
Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.
A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.
Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.
Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.
London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long
However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
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