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UAE free zones could still attract smaller firms despite new law, says Moody's


DUBAI: UAE free zones may still attract smaller businesses despite new rules allowing foreigners to start a company without an Emirati shareholder, said a Moody’s analyst.
The law, which comes into effect from June 1, allows full ownership for foreign investors. Before this was only possible in dedicated business parks known as free zones.
The change has created uncertainty over the future role of such free zones as the country ramps up efforts to boost investment amid fierce regional competition to attract foreign companies.
“The removal of the foreign ownership limits for on-shore businesses reduces one of the major competitive advantages of free zones over on-shore investment,” Thaddeus Best, an analyst at Moody’s Sovereign Risk Group, told Arab News. ”However, the new FDI law still generally requires higher minimum capitalization levels for onshore businesses compared to the free zones. As such, free zones will still be more attractive for micro, small an ....

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Malaysia's growth potential strongest among its peers — Moody's


KUALA LUMPUR (April 7): Malaysia s growth potential is stronger than its peers, according to Moody s Investors Service sovereign risk group vice president and analyst Christian Fang.
During its Inside Asian Series Media Roundtable, Fang noted that while incomes in the Malaysia are slightly below the average in its peer group which includes countries such as Indonesia, the Philippines, Thailand, Latvia, Mexico and Ireland they are still higher than other emerging markets (EMs) in the region.
Our estimate to Malaysia s growth over 2021 to 2024 will be among the highest in its peer group. Here when I am looking at its peer group, I am referring to A2 to BAA1 peers. Malaysia is rated A3 with a stable outlook, he said. ....

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The Great Suck-up Begins


The Great Suck-up Begins

NEW GLOBAL TRANSLATIONS PODCAST EPISODE: How can countries ensure people have what they need to get lasting employment? Hosts Ryan Heath and Luiza Savage talk with leaders about the structural changes needed to help workers. Listen
Washington s long, local disorientation is over today.
While media headlines have focused on barricades, and surface conversation is about the small groups of armed soldiers patrolling the city on foot, the real emotion underlying it all is relief. From embassy patios to lobbying shop Zoom calls, you hear versions of the same thing: “I know how things work again. I know who to kiss again,” in the words of one ....

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Iraq's currency devaluation will ease near-term liquidity pressures, Moody's says


Faced with the twin shocks of dwindling oil revenue and the coronavirus-induced economic slowdown, Iraq devalued its currency by about 23 per cent against the US dollar on December 20, the first time the peg was adjusted since 2015.
The Central Bank of Iraq set the exchange rate at 1,450 dinars per dollar, from a peg of 1,182 dinars, for sales to the finance ministry. The dinar will be sold to the public at 1,470 and to other banks at 1,460.
According to Moody’s, Iraq government revenue dropped more than 40 per cent during the first 10 months of 2020 compared with the same period in 2019, while the fiscal deficit widened to $12.5 billion. Sharply lower oil prices also weakened Iraq’s current account balance and led to a significant decline in central bank foreign currency reserves to $50.1bn in November 2020 from $63.5bn in April 2020. ....

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