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GCC investors purchase 1% of EU’s issued bonds for Europe’s recovery: official

By Lina Ibrahim

ABU DHABI, 13th January, 2022 (WAM) — The European Commission hopes to attract more GCC investors and financial institutions to fund its €800 billion NextGenerationEU programme, than the current one percent, said Johannes Hahn, EU Commissioner for Budget and Administration.

NextGenerationEU is a temporary recovery instrument to help Europe repair the immediate economic and social damage brought about by the COVID-19 pandemic. Its focus is to direct investments mainly into green transition and digitalisation from now till the end of 2026.

Since June 2021, the European Commission has rolled out five issuances and raised around €71 billion in long-term EU-Bonds, and short-term EU-Bills.

"I have to admit that the engagement of the [GCC] region is still below our expectations. So far, the share on all these issuances [from GCC investors and financial institutions] is around one percent. There is much more potential as we are sharing same interests," Hahn, who was on a business trip to the UAE, told the Emirates News Agency (WAM).

The EU Commissioner explained that a potential lack of knowledge about the European Union and how it works, and its tasks and legislations could be the reason behind the slow response. However, "sharing the same assessment and views" when it comes to climate change and the need for green transition can be a driving force behind attracting more investors from the Gulf region.

"Talking to colleagues and partners at least for the time being here in the UAE, there is a huge interest in green bonds and green transition," Hahn explained.

"I think GCC countries go hand in hand with the EU to lead by example, to invest in green transition," he emphasised, adding that this can be a very profitable business with at least 2 million jobs expected to be created across Europe by 2026 because of the programme.

"It is about the future of sustainable investments and here in the Gulf region, they have similar approach and understanding. That’s why we should join forces."

On 12th October 2021, the European Commission issued its first-ever NextGenerationEU green bond, raising a total of €12 billion that will be used to fund green and sustainable investments across the EU members.

"The money we raised was by far the biggest amount of green bonds being raised in one issuance globally," Hahn said, adding that the Commission intends to raise at least €250 billion in green bonds out of the total €800 billion by the end of 2026.

He also highlighted the UAE’s key role in green transition as the host of COP28 in 2023.

"It’s not by chance that the UAE will host COP28 in 2023. For this, we have also discussed a closer cooperation. We have agreed about all the climate targets, but now we should focus on how to achieve these targets," the EU Commissioner said.

"That is only possible if we are all [the global actors] invest in green transition."

One of the EU’s targets is to make Europe the first climate-neutral continent by 2050. Meanwhile, the UAE’s response to climate change is to decarbonise its economy and achieve net-zero emissions by 2050.

According to Hahn, the NextGenerationEU’s €800 billion package, combined with the EU’s Multiannual Financial Framework (2021-2027) of €1.2 trillion, will see investments of at least 30 percent in green projects and 20 percent in digitalisation.

When asked about the impact of Brexit on EU’s finances, Hahn said that it has had a "significant" impact as the UK was the second largest economy and a net contributor to the budget.

"It is really a significant loss, and it is certainly damaging our general performance," he said, anticipating, however, that things should improve and both sides should return to good neighbouring relations soon.

Meanwhile, the US Federal Reserve has announced that it might raise interest rates this year to address inflation. When asked if this policy can affect Europe’s funding programme, the EU Commissioner ruled out that "at least in the short or medium terms".

"We have to see how things evolve. But in general, I think it will not have a big impact, at least in the short and medium term, for instance, on our bond issuing programme and the attractiveness of them," he said.

WAM/Ibrahim Shukralla

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Emirates

World Free Zones Organization Launches its New Corporate Identity

The World Free Zones Organization (World FZO) has launched its new corporate identity, which coincided
with its 10th anniversary. The launch came during the 10 th World Free Zones Organization (World FZO) World Congress in Dubai held under the theme ‘Zones and the Shifting Global Economic Structures – Unlocking New Investment Avenues’, In conjunction with the launch of its new corporate identity, the World FZO announced its new vision, mission, and purpose. Its new vision focuses on driving global economic progress, sustainability, and inclusive growth through empowered free zones, setting the benchmark for economic advancement. As part of its new mission, the World FZO aims to engage with free zones from around the world by supporting them through knowledge
sharing, networking, advocacy, and consulting, enhancing their positive impact and contributions to economic and social development in their respective countries.
The World FZO reaffirmed its commitment to its core values while enhancing its approach by adopting the
latest practices and keeping pace with rapid global changes. This forward-thinking approach enables the
organisation to reshape prevailing perceptions and highlight its distinctive and innovative methods.
With its new identity, the World FZO also emphasise its dedication to launching purposeful and transparent initiatives that solidify its role as a catalyst for positive change on the global stage.
The organisation’s new corporate identity represents its three strategic pillars: Impact, Influence, and Trust. Its focus on Impact will drive sustainable growth and effectiveness, ensuring that free zones remain at the forefront of socio-economic development and innovation. Under its second pillar, Influence, it seeks to shape the future of global trade and investment by advocating for policies that foster growth and opportunity for businesses and communities. Furthermore, by building Trust, the organizations will reinforce its role as a steadfast ally, providing the advocacy needed to navigate an increasingly complex and evolving global landscape. The organisation’s key objectives for its new phase include opening new investment horizons and reinforcing social contributions by supporting net-zero initiatives.
The World FZO remains focused on fostering trade relations and partnerships between economic zones in its member countries, while broadening its activities to encompass emerging economic sectors. These sectors align with the demands of the era, including artificial intelligence, digital trade, the Fourth Industrial Revolution, and advanced technologies.

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Emirates

Dubai Customs Launches Innovative Training Program to Enhance Emiratisation Efforts

– Specialized Vocational Program Under "Masar 33" Aims to Train and Employ 80
Citizens
– Sultan Bin Sulayem: Our Plans Align with National Vision and Goals
– Abdulla Mohammed Busenad: A Strong Commitment to Supporting
Nationalization Efforts in the UA

Dubai Customs is launching a significant initiative to train and employ 80 new high school graduates as “Customs Inspectors.”in line with the vision of the Dubai government and contributing to the goals of the Dubai Economic and Social Agenda, along with the leadership’s commitment to invest in citizens and increase Emiratisation rates.
This initiative is part of the department’s commitment to enhance the participation of citizens
in the economic development process and to support the UAE Centennial 2071 Plan goals
by investing in the youth and equipping them with the skills and knowledge necessary to
keep pace with global changes. The department has allocated a vocational program in
customs inspection for candidates selected from Ru’ya Careers UAE 2024, providing them
with professional training for seven months both domestically and internationally before they
take up available positions. This initiative is part of the pioneering “Masar 33” program
designed to meet Dubai’s agenda goals by mobilizing all resources and development plans
to ensure the highest quality of life for citizens in the emirate. “Masar 33″aims to enhance
the competitiveness of Emirati talent through various initiatives, professional programs, and
scholarships, establishing Dubai Customs as a cornerstone for advancing the national
human development system, boosting its efficiency and productivity, and increasing its
participation in economic sectors to meet Dubai’s leading aspirations for the future.

Program Objectives:
The vocational program aims to nurture and train new high school graduates by enhancing
their professional skills in line with the Dubai government’s vision. It seeks to integrate
citizens into the labor market from early stages, ensuring their future success and
competitiveness. Additionally, it focuses on building the capabilities of customs inspectors on
scientific and advanced training foundations to address security risks and protect the
community and economy from customs evasion and smuggling, achieving a 100%
nationalization rate in customs inspection at Dubai Customs.

Active Participation:

H.E. Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports,
Customs and Free Zone Corporation, stated that the organization is committed through its
various initiatives and programs aimed at training and qualifying citizens to actively
contribute to the success of the UAE’s national vision, which is fundamentally based on the
Emirati workforce. He praised Dubai Customs for diversifying its projects in line with the
Dubai government’s plan and its social and economic agenda, enhancing the
competitiveness of citizens in the labor market for both the public and private sectors under
an ambitious strategy to encourage and promote nationalization policies.

Attracting Citizens:
H.E. Dr. Abdulla Mohammed Busenad, Director General of Dubai Customs, emphasized that
the department provides a range of specialized programs at the highest levels to attract
young citizens and involve them in the development process. Through “Masar 33” which
aligns with the objectives of the Dubai agenda and the leadership’s vision for enhancing
nationalization in both the public and private sectors, the programs enable citizens to gain
knowledge, field experience, and technical skills necessary for joining the labor market
through the approved career path. He noted that the initiative to train recent high school
graduates in customs professions builds upon Dubai Customs’ previous achievements in
qualifying citizens and the positive results attained through a series of diverse programs
covering the most in-demand job sectors. The department remains committed to enhancing
the efficiency of citizens and providing them with the professional opportunities they seek,
reinforcing its commitment to supporting nationalization efforts in the UAE.

Four Pillars:
Mohammed Al Ghaffari, Executive Director, Human Resources Division at Dubai Customs,
announced the opening of applications for the customs inspector training program during the
Ru’ya Careers UAE 2024 and provided the link to the official Dubai Government Jobs
website. The program is designed around four main pillars: digital skills programs, behavioral
programs, customs science programs, and security programs, alongside practical training in
the department’s customs centers and external training in collaboration with strategic
partners, which includes a comprehensive professional guidance program. He stated, “The
programs provided by Dubai Customs are increasingly popular among young citizens,
confirming the success of the department’ efforts in attracting national talent to shape future
leaders in customs work through various academic and specialized professional paths. This
offers new graduates the opportunity to qualify for roles in Dubai Customs, with 80 vacancies
allocated for graduates of the customs inspector training program.”

 

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Emirates

DCO Secretary-General commends Global Digital Compact at Summit of the Future

Deemah AlYahya, Secretary-General of the
Digital Cooperation Organization (DCO), said that “the digital divide the world faces today is
multifaceted, encompassing gaps in digital intelligence, computing capabilities, gender, and
skills,” in a speech at the Summit of the Future held during UNGA79 in New York.
In her speech, delivered after the UN General Assembly adopted the & Pact for the Future’ and the
‘Global Digital Compact’, AlYahya warned that “The AI and computing divide represents a
significant barrier, as some nations advance rapidly in AI innovation and deployment, while
others struggle to keep pace.
At the same time, the gender digital divide continues to limit women’s access to technology and
opportunities, and the skills divide leaves many without the digital competencies essential for
success in a fast-evolving economy. If we do not address these interconnected challenges, we
risk leaving entire communities behind.”
AlYahya praised the Global Digital Compact for “lays out an ambitious roadmap for an
inclusive, open, sustainable, fair, safe and secure digital future for all,” emphasizing that “It is a
bold vision, but the real challenge is translating these goals, principles, objectives, and
commitments into action, especially as we strive to achieve the SDGs.”
AlYahya highlighted that “at the Summit of the Future, the DCO proudly launched the Digital
Economy Navigator (DEN), an innovative tool that provides detailed insights on digital economy
performance across 50 countries. This initiative is just one of the many ways we are turning the
principles of the Global Digital Compact into action.”
She explained that “while DEN is a vital resource, it is only the beginning. In the spirit of
networked multilateralism, we must foster collective efforts to the GDC’s ambitious goals,
objectives, and commitments. I call upon every country, organization, and individual to join
forces in this critical endeavor.”
The Digital Economy Navigator (DEN) evaluates digital economy performance through three
intersecting dimensions: Digital Enablers, Digital Business, and Digital Society. Within these
dimensions, 10 pillars synthesize and summarize key aspects of countries’ digital economy, and
use of digital technology application from 102 indicators gathered from respected secondary data
sources, in addition to proprietary survey data of more than 27,000 participants across the 50
countries.
In addition to the launch of the DEN, on the sidelines of UNGA, DCO signed an agreement with
the United Nations Development Program (UNDP) to enhance digital cooperation and accelerate
digital transformation across the world, to support efforts aimed at achieving the United Nations
Sustainable Development Goals by 2030.
It also signed a memorandum of understanding with the League of Arab States (LAS) to
accelerate the inclusive and sustainable digital economy, enhance relations and exchange experiences and knowledge, and accelerate the process of digital transformation and economic development.

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