The UAE is the UK’s fourth-largest export destination, with UAE residents buying £1.6 billion in British goods in the year to April 2016, according to data from the UK’s Revenue and Customs. Chris Ratcliffe / Bloomberg
The UAE is the UK’s fourth-largest export destination, with UAE residents buying £1.6 billion in British goods in the year to April 2016, according to data from the UK’s Revenue and Customs. Chris Ratcliffe / Bloomberg
The UAE is the UK’s fourth-largest export destination, with UAE residents buying £1.6 billion in British goods in the year to April 2016, according to data from the UK’s Revenue and Customs. Chris Ratcliffe / Bloomberg
The UAE is the UK’s fourth-largest export destination, with UAE residents buying £1.6 billion in British goods in the year to April 2016, according to data from the UK’s Revenue and Customs. Chris Rat

Business

The five important things in business right now

The National

June 27, 2016

  • English
  • Arabic

Here’s what you need to know in UAE business and globally on this Monday morning.

• Sterling takes a pounding

It’s all Brexit, Brexit, Brexit this week, and while some are looking on concerned, there are many UK expatriates in the UAE rubbing their hands together as the sterling tumbles. “British expatriates in the UAE and GCC region are taking advantage of the weakening pound, and are remitting money home at very favourable exchange rates,” said Sudhesh Giriyan, chief operating officer of Xpress Money. The pound slipped another 2 per cent to $1.3403 as of 12.58pm Tokyo time, extending Friday’s 8.1 per cent plunge.

• Oil joins the slide

After slumping 5 per cent on Friday, oil prices fell again this morning. The US benchmark West Texas Intermediate fell 26 cents, or 0.55 per cent, to $47.38 and Brent shed 15 cents, or 0.15 per cent, to $48.26. Both contracts have tumbled almost 10 per cent from their 2016 highs touched earlier this month. “While the oil market fundamentals will ensure no major drop in the price of crude, as the UK accounts for less than two per cent of global demand, the oil markets are likely to remain under pressure until the volatility in the financial markets comes down,” EY Services oil and gas analyst Sanjeev Gupta told AFP.

• UAE stock markets

With the global picture so grim, it came as no surprise to see the Dubai Financial Market and Abu Dhabi Securities Exchange General Index caught up in the turmoil yesterday. The Dubai index fell by 4.7 per cent in early trading, before regaining ground to finish 3.2 per cent lower at 3,258.17, its steepest one-day fall since January. Abu Dhabi closed 1.8 per cent lower.

• Dubai to stay strong

Despite the low oil price and an expected easing this year, economists have once again backed Dubai to experience healthy growth in the run up to Expo 2020. Alp Eke, the senior economist at NBAD, said this year's expected easing is "mainly because of a slowdown in construction and real estate". He said: "The drop in growth is negligible, because Dubai will not be severely impacted by the decline in oil prices." Read the full story here

• Governance in focus

If you haven't already, take a look at our special report on governance in the UAE. Is corporate governance correctly carried out in your workplace? Have you say on the topic in our poll here.

business@thenational.ae

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While you're here
Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

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