UAE news roundup, 31 October 2006

Inflation does not deter Gulf on unified currency. "The council's members - Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain - have pegged their currencies to the dollar in preparation for the currency, which will also be pegged to the dollar at the start but may be traded freely later. . . . The rate of growth in the price of goods within the council has varied from just over 2 percent in Saudi Arabia to over 13 percent in the United Arab Emirates, violating one of the criteria agreed last year."

Etisalat expects to lose 20-30pc market share in UAE. "Etisalat expects Du to secure between 20 and 30 per cent of the domestic mobile phone market within three years of its launch, Julfar said. In order to avoid a corresponding decline in revenues, Etisalat will launch a cost-cutting campaign that will include merging business units to improve efficiency, Julfar said. He said he did not expect major layoffs among the firm’s 10,000 employees. The company also plans to readjust its tariff rates to maximise profits, Julfar said. For instance, Etisalat will increase subscription charges on fixed-line business phones, while reducing rates on international calls, he said."