Reda Mosallam, General Manager of Truth Economic & Management Consultancy, said: “The government operates in the UAE at the federal and local levels, with a pattern that depends on attracting investments, bringing in technologies, operational efficiencies and financing, in an economic manner that is the business sector, so that the government department moves from the phase of full spending on projects, to work with the system of participation with the private sector, up to the system of alliances, whether in operation or financing through the system of shares in ownership and profits, and leasing of assets for a specified period, noting that this trend is witnessing an increase in achieving the transformation process in the water and energy sector. ”
Reda Mosallam, managing partner of Truth Economic and Management Consultancy, said that Dubai World’s success in paying early debts before its due date is good management of funds despite the difficult global conditions imposed by the Corona pandemic, explaining that early payment was made using asset sales and dividend payments & canceling DP World from the NASDAQ Dubai, which contributed to the strengthening of the debt restructuring process.
Mosallam said that the announcement of this positive news confirms the ability of the Emirate of Dubai to manage its money efficiently and professionally in light of this current crisis, in a way that supports and enhances confidence in its economy and its global position.
Financial expert Reda Mosallam, partner and general manager of the “Truth” Economic & Management Consultancy, said that the authority’s plan for the next 10 years must include how to manage markets during crises and ways to remedy and get rid of their damages and effects quickly, as the authority did during the “Corona” crisis, through a series of measures to deal with the effects of the crisis, pointing to the need to make quick decisions in times of crisis to control the balance of markets and protect the interests of investors.
Mosallam called for the necessity of encouraging family and private groups to convert into a public contribution and inclusion in the move that is of great importance in the march of corporate development and ensuring the smooth succession of generations in family groups, noting the great role that public offerings and inclusion play in creating value for companies, with what they provide of Benefits for companies seeking to implement growth and sustainability strategies.
Reda Mosallam, partner and general manager of «Truth» economic and Management Consultancy, stressed that: “The establishment of a national company for digital payments is a natural development for the continuous growth of the digital economy in the country, which has reached full maturity, especially in the presence of a strong and high-quality infrastructure and system An advanced banker, as well as the proximity of the work in the services of the fifth generation, which enhances and raises the pace of demand for digital services ».
Mosallam added: “The UAE government has clear plans to keep pace with the changes taking place in the world, and thus has gone to establish a national company for digital payments that provide services in a safe and fast manner that guarantees protection and the quality of services provided to all sectors in the country.”
Reda Mosallam, the partner and general manager of “Truth” for economic and management consultancy, described the dividends as a safe haven for investors with their anticipation throughout the year, indicating that some companies may resort to precautionary measures regarding distributions, which is subject to the approval of the general assemblies. He attributed the withholding of distributions or reducing them by companies’ boards of directors to the current circumstances that require caution and maintaining liquidity to pump them into projects and cover operating expenses, stressing that reducing the distribution may be a lesser measure for shareholders than withholding them permanently.
Reda Mosallam, partner and general manager of Truth Economic and Management Consultancy L.L.C, said that the conditions the world is witnessing due to the Coronavirus will create millions of investment opportunities through mergers and acquisitions, especially since many companies suffer from difficult financial conditions.
Mosallam added that Emirati companies with the good financial position and strong solvency will be eligible to seize these opportunities amid expectations of their acquisition and perhaps merger with the aim of strengthening and unifying efforts, indicating that the current time is a good opportunity to study the situation and waiting until the epidemic recedes and eliminates it and then start seizing opportunities.
Mosallam stated that the global economy will not return as it was after the elimination of the Coronavirus, as the mechanisms of the engines of the economy and consequently the regional economies will change, as will the work of the international private funds and organizations specialized in developing the principles of the market mechanism of all kinds.
Mosallam believes that recovery from the effects of corona will take not a little time and that the world will take a long time, in addition to the lessons learned from that grinding crisis that will take a long time to benefit from it and develop solutions for it.
The General Manager of “Truth” company expected a real emergence of specialized funds in the coming period to support and strengthen the economic sectors directed to them, in addition to the expected activity of acquisitions and mergers of local, regional and international economic entities (companies, institutions, and bodies) to restore activity and vitality in those economic entities.
Reda Mosallam, partner and general manager of “Truth” Economic and Management Consultancy Company, said that the SCA’s lowering of the maximum levels of stock decline in the current circumstances represents an important and appropriate decision for the current period in which our local markets witness unjustified and exaggerated declines.
Mosallam added that the Authority has, over the past years, established regulations and enacted the necessary laws for the markets, but in light of the current emergency conditions, the Authority has the right to amend some rules in order to maintain markets and protect investors from the developments that the world is currently witnessing. He pointed out that the decision will give investors enough time to wait and study the situation before making further sales.
“These initiatives constitute a high level of resistance to the current conditions and major support to motivate the private sector to continue with more confidence,” said Reda Mosallam, partner and general manager of Truth Economic Consultancy, expecting the results of these initiatives to be reflected in the economic activity of Abu Dhabi state directly and quickly. , Following the evacuation of the current conditions resulting from the spread of the Coronavirus around the world.
Reda Mosallam, partner and general manager of “Truth” Economic and Management Consultancy Company, said that public shareholding companies represent the backbone of the stock market, as one of the most important elements on which the growth of economic development depends. He indicated that banks are the best performers compared to other public joint-stock companies due to the nature of its activity, the telecommunications sector is also one of the sectors that achieve good results due to the nature of its work and its good results, as well as insurance sector companies like banks and telecommunications with the difference in the size and value of profits achieved.
He pointed out that companies working in the field of construction, building and real estate did not achieve performance according to expectations, but it is expected to see improvement in their performance during the current year 2020.
Mosallam made several recommendations that the listed companies should apply to improve their results, which include commitment to implementing the new corporate governance system and guide issued by the Securities and Commodities Authority, and also applying the internal control system and guide and making sure it is fully and accurately implemented, along with the professional conduct system and guide.
He called for the necessity of tightening control over the work of the boards of the losing companies, which we consider to be the primary cause of the inappropriate results of those companies and to find a formula of understanding with the banking system in tolerating the outstanding debts, assisting the financially troubled companies, and providing more facilities according to binding contracts.