Business

EU to cut VAT to pave way for cheaper internet, bicycles, solar panels

European Union finance ministers agreed on Tuesday to change EU rules so that they can cut the Value Added Tax (VAT) on goods and services linked to fighting climate change, health protection and making the EU more ready for the digital age.
At the same time they agreed to phase out by 2030 some of the existing lower VAT rates on fossil fuels or other goods that add to greenhouse gas emissions, to help the 27-nation bloc reach its target of not emitting any CO2, in net terms, by 2050.

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The EU’s standard minimum VAT rate on all goods and services is 15 percent, except for a list of exemptions where the reduced VAT rate must be at least 5 percent. Actual tax rates applied vary between EU countries and between products. Some countries have also agreed on special rates for specific products.
The ministers also agreed that reduced VAT rates and exemptions for chemical fertilizers and chemical pesticides would remain in place until January 1, 2032, to give small-scale farmers more time to adapt.
The deal will allow governments to apply lower VAT rates on products and services making the economy more fit for the digital age, like internet access and live streaming of cultural and sports events.
Wary of the experience of the COVID-19 pandemic, the ministers agreed to add to the list of goods enjoying lower VAT rates health protective equipment like face masks and other medical gear and items considered essential for the disabled.
Lower VAT will also be possible on products linked to fighting climate change like bicycles, green heating systems, and solar panels installed in private homes and public buildings.
The lower rates will become possible once the European Parliament is consulted on the agreement which could take until March 2022.

Business

Region’s first-of-its-kind 3D printing facility for aviation parts opens in Dubai

Paradigm 3D opened the doors to its state-of-the-art $5.44 million (Dh20 million) 3D-printing facility in Dubai on Thursday — the first in the Middle East capable of producing parts in accordance with the aerospace-specific EASA Part 21G regulation.

Outfitted with industry-leading industrial 3D printers from NASDAQ-listed Stratasys Ltd., the facility will initially focus on producing parts for the region’s aviation industry.

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The 10,750 sq ft. factory in the Jebel Ali Industrial Area will initially have a production capacity of approximately 2,000 additively manufactured parts per year, with expectations to grow to around 20,000 per year over the next decade. Typical components produced at the facility will include aircraft interior components for seating, lavatories, electronic cooling ducts, environment control system ducting, wire guides, filter boxes, micro vanes, gaskets, component connectors, air intake manifolds and more.

As officials explined, the USP of the process at the facility is essentially the ease of use, reliability, repeatability — printing engineering grade thermoplastics with long intervals between maintenance and autonomous operations.

The event was notable for the presence of Scott Crump, Co-Founder of Stratasys, recognized globally as the godfather of 3D printing, a technology that is transforming industries worldwide. In fact, it is Crump's groundbreaking invention — Fused Deposition Modelling (FDM) — that has become synonymous with 3D printing itself.

Paradigm 3D’s factory, in the Jebel Ali Industrial Area, will feature world-class industrial printers from Stratasys, establishing the UAE as a hub for fast-growing additive manufacturing segment. (Supplied)

Across the world, leading aircraft and cabin interior product manufacturers including Boeing, Collins Aerospace, BAE Systems, Airbus, Diehl Aviation, Safran Seats, use additive manufacturing systems from Stratasys. “What makes Paradigm 3D’s facility unique is that it is the only 3D printing service provider in the Middle East that will be certified to produce 3D-printed parts for private and commercial aircraft,” said Stratasys EMEA President, Andreas Langfeld. “Having this capability in Dubai will reduce the lead time for replacement parts by weeks, possibly even months, helping airlines keep their planes in operation more predictably. This will not only reduce operational costs, particularly around logistics, but it will also reduce the environmental impact associated with transportation of these spare parts.”

Paradigm 3D has partnered with Stratasys’ long-time Dubai-based partner, The Design to Manufacturing Company (theD2Mco) and Latvia-based certified aerospace production company, AM Craft which holds an EASA Production Organization Approval (POA).

The industrial 3D printers at the new facility were installed by theD2Mco and they will be responsible for 24-7 uptime and support.

AM Craft will enable Paradigm 3D to become the first qualified manufacturing site outside the European Union under their certification and will support Paradigm 3D in achieving local production approval. This affords the company the ability to offer regional manufacturing capabilities to local airline operators.

“We are committed to collaborating with Paradigm 3D and Stratasys in supporting the UAE government’s vision for its manufacturing sector through initiatives such as Operation 300bn. The use of Stratasys 3D printers for primary production applications sets this facility apart from others in the region, and enables it to confidently serve the needs of customers in highly regulated industries such as aviation. We see clear potential for this new plant to serve not only the UAE market, but the entire region,” said Kyriakos Papantoniou, group executive director at theD2Mco.

Typical components produced at the Paradigm 3D facility include aircraft interior components for seating, electronic cooling ducts, environment control system ducting, wire guides, filter boxes, micro vanes, gaskets, component connectors, air intake manifolds and more. (Supplied)

“Airlines operate globally, and the Paradigm 3D facility will enable both regional and global aerospace companies to benefit from decentralized and on-demand manufacturing. We are aiding Paradigm 3D to enable them to become a one-stop-shop for designing, manufacturing and postprocessing certified aircraft components exactly when and where they are needed for immediate installation on aircraft which will be the state-of-the-art capability from the certification and technology perspective,” said Janis Jatnieks, CEO of AM Craft.

Following the anticipated success of the Jebel Ali manufacturing plant with airlines, Paradigm 3D intends to expand its focus into other industry verticals. “We see additive manufacturing as a core growth enabler for manufacturing in the region. The UAE’s appetite for innovation, and the government’s support for projects that leverage industrial 3D printing, means the country is perfectly positioned to be a hub for real digital manufacturing revolution,” Mohamed Juma, co-founder and owner of Paradigm 3D added. “Proving our abilities in the highly regulated aviation sector will serve to validate the numerous advantages of 3D printing. It will enable us to expand into parallel sectors, such as oil & gas and other industrial applications.”

Dar Al Arkan launches first 3D printed villa to support sustainable construction

Move to promote Dubai as a regional, global hub for 3D printing tech gathers momentum

Business

Supermarket franchisee Spinneys Dubai plans IPO in 2024 second quarter

Spinneys Dubai LLC, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is planning an initial public offering of the business in the second quarter of 2024, three sources with direct knowledge of the matter said.
Albwardy Investment, the franchise’s 100 percent owner, hired Rothschild & Co to advise on the planned IPO, the sources said, requesting anonymity as the plans are not public.

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It invited banks this week to pitch for roles in the offering, expected to be up to 30 percent of the company, the sources added.
Spinneys, Albwardy, and Rothschild did not immediately respond to Reuters’ requests for comment.
The potential IPO of Spinneys Dubai, planned on the Dubai Financial Market, would add to the small but growing regional food retail sector.
Americana Restaurants, the Middle East and North Africa franchisee of fast food restaurants KFC and Pizza Hut, as well as a seller of frozen foods, debuted in a dual listing in Abu Dhabi and Riyadh in December.
Lulu Group, a hypermarket and mall operator, expects its IPO in the first half of 2024, its chairman said earlier this month, adding that it hired Moelis & Co to advise it, confirming an October 2022 Reuters report.
IPO activity in the Gulf is expected to pick up after the pace slowed from an exceptional 2022, when Saudi Arabia and the UAE led new listings, raising nearly $22 billion — more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
Middle Eastern companies still raised $5.3 billion in the first half of this year through 23 market debuts.
Spinneys Dubai operates more than 65 stores across the UAE, its website says. In addition, it operates at least seven stores in Oman, Albwardy’s website says.
Albwardy, which says it has annual turnover above $1 billion, also owns the franchise rights to upmarket British supermarket chain Waitrose.
Founded in the mid-1970s, it has a hospitality portfolio that includes several Four Seasons hotels and food distribution investments that include Nestle UAE.
Other sectors in Albwardy’s portfolio are industrial and engineering, commercial and insurance, agribusiness, and properties.

Saudi PIF agrees to buy 30 pct of Tamimi supermarket’s share capital

Dubai retailer GMG to operate French supermarket chain Géant in UAE

Business

Private lender Blue Owl plans to open Abu Dhabi Office in Middle East expansion

Private credit lender Blue Owl Capital Inc. is working to open an office and hire a team in Abu Dhabi focused on capital raising, a move to help strengthen its relationship with wealth fund Mubadala Investment Co., according to a person with knowledge of the matter.

The office has become a priority for Blue Owl as it expands its presence in the Middle East, said the person, who asked not to be identified as the details are private. The private credit lender recently secured a $1 billion investment commitment from the Abu Dhabi wealth fund.

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Representatives for Blue Owl and Mubadala declined to com-ment.

Blue Owl, which has about $150 billion under management, is one of the largest players in the private credit market. Some of its recent deals include a $2.65 billion debt package to support Francisco Partners and TPG Inc.’s acquisition of New Relic Inc. as well as a $2.7 billion financing to help fund BradyIFS’s acquisition of Envoy Solutions.

Blue Owl has also been formalizing plans to open an office and hire a team in nearby Dubai to tap into growing demand from Middle Eastern wealth funds in alternative assets. The firm plans to invest directly in the region once the new offices are established, the person said.

The Middle East offices will add to the nearly dozen locations around the globe where the firm already has a presence including Hong Kong, London, Singapore, and Tokyo.