Beruflich Dokumente
Kultur Dokumente
Introduction 5
Note 6
Legend 7
Manufacturing 12
Construction 14
Education 19
Other Services 20
Conclusion 21
Introduction
Note
Rating Opinion:
The Credit Rating Opinion is a rating system designed to assess the ability
of a company to fulfill its financial commitments, using a standard scale of
evaluation.
Benefits:
• A credit assessment score given by a credit expert
• An identification of potential risks associated with the rated company
• Reliable data on the rated company and its credit history
Legend
A Credit Opinion is reflected in a 5-level scale and shows the credit limit for the
companies included in the sample:
R € 10,000
@ € 20,000
@@ € 50,000
@@@ € 100,000 and above (Customized Credit Opinion is required)
X Company shows weakness, no credit will be granted
Dubai Economy: Overview
Economic Sectors: Rating Overview
Agriculture & Fishery
Agricultural and fishery activities are a relatively small segment of the Dubai
economy – less than one per cent – but still account for over AED 1bn of Dubai
GDP. This sector will continue to attract attention as food security and water
management issues continue to be at the forefront of people’s minds.
Dubai farms produced nearly 90,000 tonnes of crops in 2005, for a total value
of AED 160m. Fifty-eight per cent of the crops were classified as ‘crops &
fodder,’ 37 per cent were fruits, and five per cent were vegetables. In addition,
farms produced over 38,000 tonnes of milk, nearly 7,000 tonnes of chicken,
and over 111m eggs. Approximately 16,600 tonnes of fish were caught by
Dubai fishermen.
The sector includes firms engaged in traditional farming and fishing activities
as well as businesses providing support services to the sector, in such areas
as irrigation and pest control.
10
Mining & Quarrying
Fourty per cent of the companies are rated with a credit limit of minimal
€ 100,000. Thirty-six per cent of companies received a rating of € 50,000,
whereas twenty-two per cent are limited at € 20,000.
11
Manufacturing
Half of the companies in this sector received a notable “@@@” distinction. One
fourth is rated with a credit limit of € 50,000. The remaining one fourth of the
companies are rated with a limit of € 20,000.
12
Electricity, Gas & Water
Electricity, gas, and water production and distribution make up a small, but
vital, percentage of Dubai economic activity. This sector can be seen as
being divided into two main components: traditional utilities (including service
providers to grid operators) and bottled drinking water. These businesses
have experienced exceptional demand growth over the past several years,
as population growth and an expanding development footprint in the emirate
have created considerably increased need for these services. Between 2005
and 2007, the size of this sector in the UAE as a whole grew at more than 12
per cent per year.
Dubai Electricity and Water Authority (DEWA) provides electric power and
water service to Dubai residents and businesses. To meet anticipated demand
growth, DEWA has recently confirmed its commitment to its AED 72.5bn plan
– first launched in 2007 – to increase the production capacity of water and
electricity. DEWA currently has nearly 6,700 megawatts of power production
capacity and plans to increase capacity by nine per cent by the end of the year.
Water supply is largely provided by desalination; DEWA plans to expand its
current desalination infrastructure to reach a capacity of 333m imperial gallons
per day by the end of the year.
The ratings for this sector are evenly distributed over the credit limits of € 100,000
(@@@), € 50,000 (@@), and € 20,000 (@).
13
Construction
Construction accounted for just over eight per cent of Dubai GDP and employs
over 250,000 workers – nearly one-fourth of the workforce. Despite the recent
slowdown in the global real estate market, there are still hundreds of billions
of construction projects underway in Dubai. Jones Lang LaSalle estimate that
over the next three years, current construction projects will bring nearly 35m
square feet of office space and 90,000 new residential units to market. Over
the next two years, retail space will increase by 50 per cent to around three
million square feet of gross leasable area, with completion of major shopping
centre projects.
Thirteen per cent of this large sector was rated with a credit limit of € 100,000
or above. One third was rated with a limit of € 50,000. Half of the sector was
limited at € 20,000.
14
Trading & Repairing
The trading and repairing space – which includes wholesale and retail trade,
distribution, maintenance, and repairs – is the largest sector of the Dubai
economy, accounting for over one third of GDP in the emirate. As of 2006, this
sector employed 29 per cent of the workforce of Dubai and occupied 60 per
cent of establishments.
One fifth of the rated companies has a credit limit of minimal € 100,000. Another
quarter of the companies was rated with a limit of € 50,000, whereas half of the
companies has a credit limit of € 20,000.
15
Hotels & Restaurants
Hotels and restaurants form the backbone of Dubai’s rapidly growing tourism
sector. Mega-projects in the sector have grabbed headlines around the world,
including the ultra-luxurious Burj al Arab project and the recently-opened
Atlantis Hotel on Palm Jumeirah.
Dubai hotels saw nearly seven million guests in 2008, surpassing the previous
record set in 2007. As of the middle of 2008, 340 hotels were operating in
Dubai. Hotel revenue in the emirate reached AED 15.25bn last year, a 15 per
cent increase over the previous year. The total number of hotel rooms and hotel
apartments in Dubai stood at 49,598 as of the end of 2008. For the second
quarter of 2008, the overall room occupancy rate stood at 80.1 per cent.
The restaurant industry in Dubai reflects the cosmopolitan nature of its resident
population. From world-renowned haute cuisine to neighbourhood eateries,
Dubai restaurants cater to all tastes and serve dishes originating from all
corners of the world. In addition to locally-established restaurants, Dubai is
host to numerous international chains and franchises. Many fast-food chains,
including international brands, have reported steady sales in the UAE in recent
months, suggesting that this slice of the market is holding up well in the current
economic climate.
Twenty-eight per cent of the companies in this sector received a notable “@@@”
distinction. One fifth is rated with a credit limit of € 50,000. Fourty-two per cent
of the companies are rated with a limit of € 20,000. In addition, eight per cent
of the companies are rated as weak.
16
Transport, Storage & Communications
Transport, storage, and communication account for about nine per cent of
Dubai GDP and employs over 90,000 people. Although this sector seems
relatively small, it is critical to the proper functioning of other sectors in the
economy.
Dubai ports are led by Jebel Ali Port and Port Rashid, both part of the DP
World portfolio. Dubai Drydock and JADAF Dubai provide ship repairing and
maintenance facilities to members of the maritime community.
17
Real Estate, Renting & Business Services
The sector accounts for 15 per cent of Dubai GDP, making it the third biggest
sector of the economy. Nearly nine per cent of the workforce is employed in
real estate, renting, and business services – over 90,000 workers.
The companies listed in this specific sector overview fall into four major
categories: general business services, computer services (including various
information consulting services), real estate (including brokerage and property
management), and renting services (including everything from heavy machinery
to passenger car rental).
There are numerous free zones for firms in the business services sector.
Zones hosting information technology companies include Dubai Internet City,
Dubai Silicon Oasis, and Techno Park. Additionally, Dubai Outsource Zone, a
venture of Dubai Internet City, has been set up specifically for firms offering
professionally-outsourced services to corporations worldwide.
Within this sector one fifth of the companies are rated with a credit limit of
€ 100,000 or above. Another one fifth was rated with a limit of € 50,000.
Half of the sector was limited at € 20,000. Five per cent are rated weak.
18
Education
The private education sector in Dubai has witnessed rapid growth in recent
years, as it expands to meet the needs of a knowledge-based economy.
Interest in developing educational organisations in the emirate has led to the
creation of several free zones, including Dubai Knowledge Village (DKV) and
Dubai Academic City (DAC). Both zones offer a base for leading international
organisations to provide education and training to the local population. DKV is
primarily focused on knowledge-based entities – including training centres and
learning support entities – and is host to over 350 educational partners. DAC
is home to traditional primary, secondary, and tertiary institutions from around
the world. Dubai International Academic City (DIAC), which is located in DAC,
caters specifically to higher education organisations, and currently hosts 32
international institutions from all corners of the world.
Among primary and secondary institutions, the private sector is the main
provider of education; more than 80 per cent of students, nearly 150,000
pupils, attend private institutions. The market for higher education is also
substantial. Approximately 12,000 students are currently enrolled in institutions
based in DIAC. The numerous professional training organisations in DKV offer
programmes in a diverse variety of subjects, from Biotechnology to Fashion
Design.
Fourty-four per cent of the companies in this sector received a notable “@@@”
distinction. Thirty-three per cent is rated with a credit limit of € 50,000. Twenty-
two per cent of the companies are rated with a limit of € 20,000.
19
Other Services
Sixteen companies were rated under “other services”. Twenty-nine per cent
of the companies were rated with a notable “@@@” distinction. Seventeen
per cent is rated with a credit limit of € 50,000. Fourty-one per cent of the
companies are rated with a limit of € 20,000. In addition, eleven per cent of the
companies are rated as weak.
20
Conclusion
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