August 2020

National companies overcome the repercussions of “Corona” with moderate profits

Reda Mosallam, partner and general manager of “Truth” for economic and management consultancy, affirmed that the direct reasons leading to the coherence of the companies ’results are the full coordination between local governments and the federal government to follow up the devastating effects of the pandemic, develop appropriate solutions to confront it, and also summon the Crisis Management Committee and the sustainability of its meetings, which issued a set of incentives. And important barriers during the pandemic, expecting a significant improvement in corporate results during the second half, in light of the government’s success in controlling the pandemic.

He said that the companies ’results showed unexpected performance and important results that prove the strength and durability of their financial positions, which is mainly due to several factors, on top of which is the superiority of the state’s infrastructure in its comprehensive sense, in addition to the strength of the economy and financial surpluses represented by sovereign funds, in addition to government incentives and state ownership. An advanced government administration that has the best tools to support and support its economy in accordance with international best practices.

He added that the state has a professional banking apparatus that works according to a system compatible with the best international practices, as well as the presence of crisis management ready to face disasters and crises of any kind, and therefore the listed public shareholding companies operate in this environment and climate, as they are practicing their business in a model incubator to carry out these businesses with confidence.

July 2020

The Board of Directors of the UAE Central Bank holds its first meeting chaired by Sheikh Mansour bin Zayed Al Nahyan

The Board of Directors of the UAE Central Bank held its first meeting after the appointment of Sheikh Mansour bin Zayed Al Nahyan as Chairman of the Board.

The Emirates News Agency stated that Sheikh Mansour directed to support the financial stability of the country and to promote the digitization of the banking sector.

Experts: Fruitful partnerships in the energy sector achieve reliability of supply

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. ”

Experts: Early repayment confirms the durability of Dubai’s economy

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.

June 2020

A road map for developing local financial markets until 2030

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.

“Union for Digital Payments” is a step towards the future

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.”

April 2020

“Corona” prompts listed companies to withhold and reduce their dividends

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.

Expected activity for acquisitions and mergers after Coronavirus

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.