The last two weeks have been troubling for Russia, as the value of the rouble plunged to an all-time low and continued to decline against the US dollar. It was troubling for ordinary Russians, troubling for the political leadership, and troubling, indeed, for many parts of the world, including this one.
Start with the rouble’s latest woes: earlier this week, the credit rating agency Standard & Poor’s revised its projections for Russia’s sovereign credit rating, raising the prospect that it could move into junk territory for the first time in a decade. That affects ordinary Russians, who remember all too well the destruction of their savings in the 1990s. But it also has a significant impact on Russian companies, which will find it even harder to access credit. Those with existing loans in dollars or euros will find it more expensive to pay off the debt.
This region understands the root cause of some of Russia’s troubles pretty well. The rouble tumbled on the back of lower oil prices because revenue from it funds a substantial part of Russia’s budget. For the Gulf states too, oil’s falling price means less money flowing into the coffers, but the impact is obviously greater on cash-strapped countries.
This could make for greater amiability. If Iran begins to feel the squeeze of lower oil prices, it may rethink its support for Bashar Al Assad in Syria, for militia groups such as Hizbollah and the Houthis, and, perhaps, even its nuclear programme. Poorer now, Russia too may be forced to tone down its aggressive support for the Assad regime.
That said, the impact of Russia’s woes will also be felt by the UAE’s businesses. Russian tourists make up a big contingent of visitors to Dubai and the Northern Emirates. This time of year, when Russia freezes, is precisely when they prefer to come, sunbathe and shop. The rouble’s weakness against the dollar – to which the dirham is pegged – means they have less to spend and may decide the trip is too expensive anyway. There are risks and rewards of living in an interdependent world. Even those who have never been to Russia can be affected by the seeming failure of Putinomics.
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.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
Company%20Profile
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Titan Sports Academy:
Programmes: Judo, wrestling, kick-boxing, muay thai, taekwondo and various summer camps
Location: Inside Abu Dhabi City Golf Club, Al Mushrif, Abu Dhabi, UAE
Telephone: 971 50 220 0326
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
The%20specs
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Company%20Profile
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Abu Dhabi racecard
5pm: Maiden (Purebred Arabians); Dh80,000; 1,400m.
5.30pm: Maiden (PA); Dh80,00; 1,400m.
6pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (PA); Group 3; Dh500,000; 1,600m.
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (Thoroughbred); Listed; Dh380,000; 1,600m
7pm: Wathba Stallions Cup for Private Owners Handicap (PA); Dh70,000; 1,400m.
7.30pm: Handicap (PA); Dh80,000; 1,600m
COMPANY%20PROFILE
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