Springtime in the Arab world will be forever associated with revolution and civil unrest after the events of last year but in the West it means only one thing: tax season.
The rest of the world barely notices the marvels of nature reawakened for piles of receipts overflowing from shoeboxes and old plastic bags. Choruses of newly hatched chicks are drowned out by the thumping of calculator keys and anguished groans accompanying yet another spreadsheet that refuses to add up.
But even though most are hardly burdened with such trials in the UAE, reviewing the past year's finances when the days start to lengthen is a hard habit to break - for me at least.
Last year should have been a great one for Middle East and North African economies. And it was for some of those that depend on oil and gas.
The average price of Brent crude hit a 150-year high last year of US$111.26, up about 30 per cent on 2010.
Never before in a century and a half of oil production has the annual average price ended above $100, according to records kept by the US Energy Information Administration.
But, as is always the case with finances, the huge boost to revenues and the value of energy assets across the Middle East and North Africa is only half the picture.
Liabilities also hit new highs.
The world's thirst for oil might have grown at an average 1.2 per cent, with demand rising by about 4 per cent in China alone, but it was supply, or rather the fear of a lack of supply, that forced oil prices so high for so long last year.
It was the Arab Spring, chiefly the civil war in Libya, that sparked much of the panic.
In less than two weeks in February and March last year when fighting intensified across the country controlled for four decades by Colonel Muammar Qaddafi, the spot price of Brent crude rose by $15 as about 1.5 million barrels per day of Libyan oil were lost from the market.
While that rapid price rise reaped dividends for other oil producers, such as the UAE and Saudi Arabia, it wreaked havoc on most other economies in the region, especially the non-oil and gas exporters who ought to be among the Emirates' closest and most dependable trading partners.
A recent study of IMF data by Geopolicity, a UAE-based economic think tank, showed that the events of the Arab Spring led to more than $20.5 billion (Dh75.2bn) in losses to GDP in Libya, Egypt, Tunisia, Syria, Yemen and Bahrain last year alone.
The same data shows losses to public finances would be in the region of $35.2bn for a total hit from the Arab Spring of more than $55bn. Never mind the almost unquantifiable socio-economic losses to productivity and infrastructure, which would doubtless add up to tens of billions of dollars more across the same countries.
Opec countries, meanwhile, are estimated by the International Energy Agency to have made oil revenues of about $1 trillion last year, with those in the Middle East accounting for about $700bn to $800bn of that total.
The liabilities associated with the Arab Spring, therefore, could easily amount to 10 per cent of that regional total, wiping out a good third of the annual average gain they helped to build.
Back of the envelope accounting such as this may seem simplistic to macroeconomists but it does serve one important purpose.
The simple accounting of these headline gains and liabilities shows clearly that a dependence on too few sources of revenue leads to unhealthy fluctuations in markets and economies.
This is why projects such as Kizad, the UAE's Khalifa Industrial Zone Abu Dhabi - a man-made island two-thirds the size of Singapore just off the capital's coast - is so vital to the development of the nation and the region.
The giant international trade hub is designed to dilute the country's dependence on oil revenue and fuel the next stage of development to create opportunities for jobs and wealth across society.
A similar policy of diversification should be a priority for all the region's developing economies if springtime is to become a less taxing time of year in future.
jdoran@thenational.ae
Company%20Profile
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Company%20profile
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Our Time Has Come
Alyssa Ayres, Oxford University Press
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Common%20symptoms%20of%20MS
%3Cul%3E%0A%3Cli%3EFatigue%3C%2Fli%3E%0A%3Cli%3Enumbness%20and%20tingling%3C%2Fli%3E%0A%3Cli%3ELoss%20of%20balance%20and%20dizziness%3C%2Fli%3E%0A%3Cli%3EStiffness%20or%20spasms%3C%2Fli%3E%0A%3Cli%3ETremor%3C%2Fli%3E%0A%3Cli%3EPain%3C%2Fli%3E%0A%3Cli%3EBladder%20problems%3C%2Fli%3E%0A%3Cli%3EBowel%20trouble%3C%2Fli%3E%0A%3Cli%3EVision%20problems%3C%2Fli%3E%0A%3Cli%3EProblems%20with%20memory%20and%20thinking%3C%2Fli%3E%0A%3C%2Ful%3E%0A
Thank You for Banking with Us
Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The bio:
Favourite holiday destination: I really enjoyed Sri Lanka and Vietnam but my dream destination is the Maldives.
Favourite food: My mum’s Chinese cooking.
Favourite film: Robocop, followed by The Terminator.
Hobbies: Off-roading, scuba diving, playing squash and going to the gym.
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday, February 8 v Kenya; Friday, February 9 v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Who is Ramon Tribulietx?
Born in Spain, Tribulietx took sole charge of Auckland in 2010 and has gone on to lead the club to 14 trophies, including seven successive Oceania Champions League crowns. Has been tipped for the vacant New Zealand national team job following Anthony Hudson's resignation last month. Had previously been considered for the role.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
More from Mohammed Alardhi
Thor: Ragnarok
Dir: Taika Waititi
Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson
Four stars
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
A new relationship with the old country
Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates
The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:
ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.
ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.
ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.
ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.
IN WITNESS WHEREOF the undersigned have signed this Treaty.
DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.
Signed
Geoffrey Arthur Sheikh Zayed
SPEC SHEET
Display: 10.4-inch IPS LCD, 400 nits, toughened glass
CPU: Unisoc T610; Mali G52 GPU
Memory: 4GB
Storage: 64GB, up to 512GB microSD
Camera: 8MP rear, 5MP front
Connectivity: Wi-Fi, Bluetooth 5.0, USB-C, 3.5mm audio
Battery: 8200mAh, up to 10 hours video
Platform: Android 11
Audio: Stereo speakers, 2 mics
Durability: IP52
Biometrics: Face unlock
Price: Dh849
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Five famous companies founded by teens
There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:
- Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate.
- Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc.
- Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway.
- Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
- Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
COMPANY%20PROFILE
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Killing of Qassem Suleimani