The Etihad Airways deal with Alitalia is expected to pave the way for further investment in trade and tourism between Italy and the UAE, according to the Italian ambassador.
On Friday, Etihad took a 49 per cent stake in the debt-laden carrier in return for a €560 million (Dh2.75 billion) investment in an overall deal worth more than €1.75bn that will involve a three-year rebuilding exercise and rebranding of Italy's national airline.
The tie-up, which will increase the number of connections between the two countries and shift some Alitalia staff to Abu Dhabi, has made more deals likely.
Abu Dhabi’s Al Qudra Holding last week bought an Italian resort in Catania, Sicily for €140 million.
“A day before the signing of the Alitalia-Etihad agreement, Al Qudra bought a very important resort in Sicily – the Perla Ionica Resort,” said Giorgio Starace, Italy’s ambassador to the UAE. “It is interesting to see that in the plans that Etihad gave it is talking of establishing flights to other Italian cities; one of them is to Catania. This is very much linked. This is very important.”
Under the deal, Al Qudra will buy and refurbish the Perla Ionica, which will then be operated by Hilton, Mr Starace said. Al Qudra, an Abu Dhabi-based strategic investor, could not be reached for comment.
Mr Starace told The National last month that bilateral trade between Italy and the UAE was likely to grow by up to 15 per cent this year, boosted by demand for industrial machinery in the infrastructure sector in the UAE.
Trade last year between the countries was €6.9bn, according to figures from the Italian embassy in Abu Dhabi. About 80 per cent of that trade consisted of exports from Italy to the Emirates.
The embassy said that two-way trade rose 5.1 per cent last year and was up 56 per cent since 2010.
The biggest component of the southbound flow was jewellery, at €1.25bn. In the northbound direction, boats led at €575 million, while crude oil exports from the UAE to Italy were worth €202m. Trade growth is expected to come from the agriculture and food sector. Demand for Italian companies and machinery is high in the construction sector.
“Tourism will also go through an important boost in both ways. In one month, we issued more that 10,000 visas. It was a record,” said Mr Starace.
Etihad is keen to tap demand for travel from the more than 10,000 Italian citizens and 300 Italian companies that are based in the Emirates. It last month began daily flights to Rome, adding to its existing Milan service. Emirates Airline flies to Rome, Venice and Milan.
Mr Starace added that the collaboration between the two countries will also benefit from the link-up between next year’s Expo Milan and the Dubai Expo in 2020.
“Alitalia and Etihad are the official sponsors of Expo Milan 2015. Together, they will have a joint pavilion. The presence of the Italian companies in the UAE will increase, and the presence of UAE companies in the Italian market will also increase,” said Mr Starace.
“You can imagine the cohesive corporation that we have in front of us … We are building something important for the future of relations of these countries.”
The airline deal will result in the loss of 2,000 jobs at Alitalia, but some staff will be re-employed in Abu Dhabi.
“I don’t think all of them will relocate to Abu Dhabi, but surely an important portion [will be],” said Mr Starace. “The UAE is close to Italy – in terms of distance – and it’s a place that is more and more known by Italians.”
selgazzar@thenational.ae
Follow The National's Business section on Twitter
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
More from Rashmee Roshan Lall
Sunday's fixtures
- Bournemouth v Southampton, 5.30pm
- Manchester City v West Ham United, 8pm
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.5-litre%2C%20twin-turbo%20V6%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E410hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E495Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Estarts%20from%20Dh495%2C000%20(Dh610%2C000%20for%20the%20F-Sport%20launch%20edition%20tested)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Five expert hiking tips
- Always check the weather forecast before setting off
- Make sure you have plenty of water
- Set off early to avoid sudden weather changes in the afternoon
- Wear appropriate clothing and footwear
- Take your litter home with you
Sam Smith
Where: du Arena, Abu Dhabi
When: Saturday November 24
Rating: 4/5
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter