Five talking points from the week in UAE business

Stephen Lock / The National.

Courtesy Abu Dhabi Planning Council

Faisal Al Nasser / Reuters

Satish Kumar / The National

We take a look at aviation updates from the Paris Air Show, the possible end of UAE fuel subsidies, Reem Island’s master plan, Saudi stocks and Dubai’s tall towers.

The big bus in the sky

The Paris Air Show this week has provided another sounding board for airline CEOs, and in particular Qatar Airways' Akbar Al Baker and Emirates' Tim Clark. While Mr Al Baker was as colourful as ever in his comments ("I don't give a damn about the ILO - I am there to run a successful airline") following a report on discrimination against women, Mr Clark was more focused on the actual aircraft, and in particular the Airbus A380. Airbus has failed to win a new customer in more than two years for its giant in the skies, but admitted that it is considering a stretched version of the plane. Emirates, which has already ordered 140 A380s, then urged Airbus to go even bigger than the "stretched" proposal that could add an extra 40 to 60 extra seats. And that begs the questions: Just how big can a passenger jet get? And will Emirates get what it wants from Airbus? Ian Oxborrow

The end of fuel subsidies in the UAE?

At 47 US cents per litre, the price of petrol in the Emirates is lower than in many other countries, which have a habit of heaping taxes onto fuel. But the local price is still higher than in several other countries in the region – Saudi Arabia, Iran, Oman, among others – and more immediately, the price has not dropped in line with oil's retreat on international markets. Recently, a member of the Federal National Council asked why that was the case. This week the federal energy minister, Suhail Al Mazrouei, explained that subsidies play a role in the price rigidity. "[Petrol prices] are subsidised, and subsidised heavily, and we are doing the study to see how much subsidies are and to see how much we can reduce it partially or fully," the minister said. "Subsidies always encourage higher consumption and discourage conservation, and that is a concern." He said a report on the matter is to arrive in October. Rob McKenzie

Reem Island’s expansive future

Less than a decade ago Reem Island was a construction site. From the larger Abu Dhabi island it appeared on the horizon, in a couple of senses. Nowadays Reem is one of the most popular landing spots for new arrivals to the capital and its population has reached 20,000 residents. The challenge for its development is not getting it started but defining its end. On Monday, Abu Dhabi's Urban Planning Council announced its approval for a master plan drawn up by the island's three developers – Tamouh, Reem Investment and Aldar Properties. The plan calls for up to 10,000 hotel rooms, 210,000 residents, 11 new private schools, three new private hospitals, Civil Defence and Police facilities and 500,000 square metres of public parks and open space. Rob McKenzie

Foreign flows into Saudi will take time

Monday was the day international investors had long dreamt of: the first day when qualified financial investors (QFIs) could invest directly in Saudi equities for the first time. The day itself however was a bit of a let down; instead of catching light, the Tadawul instead fell 0.86 per cent, with only seven equities attracting the attention of the new investors. HSBC was the only foreign institution to confirm its QFI status on the first day. The slow start didn't exactly come as a surprise, however. Most foreign investors are still taking their time to fully digest the foreign investment regulations and brief their clients, or waiting for the price of Saudi equities to come down closer to their emerging market peers before taking the splash. Many of the bigger institutions will be waiting for Saudi's inclusion in the MSCI Emerging Markets, expected anytime from May 2017, before tucking in. Monday will still go down as a historic day, but the foreign flows will take some time to gather pace. John Everington

Dubai moves to be world’s tallest once more

Just as Dubai is set to lose its claim of having the world's tallest building, it appears likely to gain a slightly different accolade in the same bracket. On Tuesday, the architect was announced for the Burj 2020 tower - said by the Jumeirah Lakes Towers master developer DMCC to be the world's tallest commercial tower when complete. Tall buildings specialist Adrian Smith + Gordon Gill Architecture (AS + GG) has been chosen for the gig and it's easy to see why with the company's track record. Its founders worked on the design of the Burj Khalifa, and also the Kingdom Tower in Saudi Arabia, which is set to eclipse the 828m Burj when finished in 2019. One can only speculate as to the height of the Burj 2020 given that the architect is just moving into place, but what we do know is that it will have to top New York's One World Trade Center at 541m to keep Dubai on top of the world when it comes to tall building categories. Ian Oxborrow