FROM THE MANAGING PARTNER’S DESK

The recent detailing and apparent substantial acceptance by banks and creditors of the Dubai World restructuring plans is expected to bring back some stability to the local markets and enable contractors to resume paying their own creditors where this had become a problem. This demonstrates the commitment that all have to the future of the Emirates and the willingness and ability to deal with the obstacles that the present crisis has placed before us. The experience means one is more readily enabled to deal with any fallout from the Greek, and possibly Spanish, problems and any other significant restructurings that may become necessary.

It has been reported that a new Federal law on small and medium enterprises (SMEs) is to be introduced this year. It will outline the definition of SMEs, the procedures for establishing SMEs and their capital requirements. This would be an ideal opportunity to introduce the application of the International Financial Reporting Standard for SMEs that was issued last year. The preface to the IFRS states that it is the jurisdiction that determines which entities can apply the standard and the simpler accounting and disclosure requirements will be a much lighter burden for such companies at a time when they are in their developmental stages. It will be interesting to see to what extent the new standard will find acceptance in the local market.

In this edition we have an article on “DIFC – The Financial Free Zone”  written by Ms. Priya Kapoor, Assistant Manager in our Management Consulting Department.

We are very pleased to have had the opportunity to interview Mr. Sharafuddin Sharaf, Group Vice President, Sharaf Group, in this edition.

We also have our usual updates from Oman and from our Offshore and Free Zone team in this edition. 

Please feel free to write to updates@pkfuae.com if you would like to express an opinion on any matter inside.

GRAHAM MARTINS