We take a look at the fuel price rise, the end of Emirates’ 777-200, tricky times for property brokers, personal debt and Middle East investment in the UK.
Fill your car up before Saturday
Was anyone correct in predicting the new fuel prices? The government's new free market pricing was announced on Tuesday, with petrol set to rise by 24 per cent and diesel to fall 29 per cent from August 1. The pros and cons of the changes have been the centre of much debate during the past week, but the full reaction has been felt now that the pricing is known - and the verdict has been mixed. Residents living in and around cities will not notice a great difference - maybe a rise of Dh100 or so a month if they average a tank of petrol per week. Commuters between Abu Dhabi and Dubai, however, may need to trim back on other expenses to cover the increase. From a business perspective, it will be interesting to see how it affects car sales in the coming months. Is the increase big enough to drive buyers away from the 4x4 showrooms? And will the move reduce the growth in the number of cars on the roads given the rapid population growth in the country? Ian Oxborrow
Farewell to a frequent flyer
The YouTube video is entitled "The last flight of A6-EMF" and it is oddly poignant. Posted on Tuesday, the 2m 02s clip from Emirates airline is its farewell to a plane. This tribute has a fallen-hero feel to it. Cue the tinkly piano music and the slow shots across the fuselage as the airline's manager of aircraft assets, Philip Audsley, says: "Today we are witnessing the retirement of Echo Mike Foxtrot, which is the last remaining Boeing 777-200 in our fleet." As Emirates adds new planes, the 777 has come to the end of its life cycle with the airline. As the video continues we see Echo Mike Foxtrot, denuded of livery as part of its preparation for burial, backing out of its hangar at night. A glow bursts from the hangar as the big doors slide open, sideways for the wings and upwards for the tail. We meet the crew who will fly the plane to an airplane graveyard in America where it will be dismantled. Their itinerary takes the plane from Dubai to Boston and then onwards to Arizona for its final touchdown. Rob McKenzie
Dubai, Singapore, or Hong Kong?
These are testing times for property brokers in Dubai. We revealed last week that S&K Estate Agents, known as Smith & Ken, had shut up shop as workers arrived at the office in Concord Tower to find the front door smashed. Then on Tuesday an email dropped into our inbox notifying that the company had filed for bankruptcy, with all 80 staff in both its Dubai and Los Angeles offices losing their jobs. A statement from the firm's shareholders said: "After years of profitability, we believe the brokerage market is saturated – too many agencies without the population and investment to match. Also, many smaller competitors dropping fees to one per cent per transaction to win the business has made it increasingly difficult for larger brokerages to compete." Figures from Dubai Land Department on Wednesday confirmed the depth of the slowdown, with transactions falling 69 per cent year-on-year during the first half. Despite these apparent difficulties, David Godcheaux, the chief executive of Dubai-based Core Savills, told us that "some of the brokers complaining about costs should try to open up in Singapore, Hong Kong or even in Paris." Ian Oxborrow
Tales of indebtedness
Our special feature on personal debt made for somewhat harrowing reading. Expats told how they had racked up debts that stretch almost to the length of telephone numbers. And these case studies were just a handful of the many of whom contacted us in recent weeks to either share their story or seek help. Accumulation of the debt had been caused initially by misfortune - loss of job, family illness - but there was also the inability to say 'no' to extra credit cards which lead to a snowball effect of the interest being paid. According to the latest figures available Marwan Al Lutfi, head of the Al Etihad Credit Bureau, about 3.1 million residents have 6.69 million active loans, and those numbers are up 10 per cent from the end of December. With the credit bureau now operating, hopefully situations such as the one the Olivera family found itself in, will become few and far between in coming years. Ian Oxborrow
Middle East finance in London’s back yard
Great Scotland Yard has become the latest London landmark to be snapped up by Middle East money. Lulu Group International said it had paid £110 million (Dh626.6m) for the Edwardian building which was the headquarters of the Metropolitan Police more than a century ago - and plans to turn it into a hotel. The property is near 10 Downing Street and Trafalgar Square, and joins a list of some of the UK capital's most august property, such as Harrods and The Savoy, as well as more modern developments such as Canary Wharf and The Shard, that have been the chosen destination for Middle East investment. This comes at a time when Middle East buyers will soon be responsible for three in 10 London property purchases, according to CBRE. And the Middle East connection will be felt once again in a couple of weeks when the new English Premier League season kicks off. Ian Oxborrow
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