On April 15, the first gyroplane to receive a CofA debuted at AERO 2015, one of Europe’s largest aviation sector events, in Friedrichshafen, Germany. The CAA granted a type certificate to Rotorsport UK’s Cavalon Pro, thereby making it eligible for a CofA and subsequent commercial use. Gerry Speich, Rotorsport’s managing director, accepted the certificate from CAA general aviation unit leader Tony Rapson, who pledged his organization’s commitment to supporting the success of the UK’s general aviation sector. This follows the strategy of the CAA General Aviation Unit, which seeks to generate new market opportunities via the creation of a vibrant general aviation industry.
In February 2015, the United Kingdom Civil Aviation Authority (CAA) put forth a proposal to allow factory-built, type-certified gyroplanes to receive Certificates of Airworthiness as opposed to Permits to Fly. The proposal would allow for the commercial use of gyroplanes and served as a response to a recent request by Rotorsport UK, which sought a Certificate of Airworthiness (CofA) for its type-certified gyro aircrafts. Aiming to address the lack of international airworthiness requirements for gyroplanes, the CAA gathered a working group of industry manufacturers and specialists. The aviation experts then drafted a supplement to Section T of the British Civil Airworthiness Requirements that would allow gyroplanes to qualify for CofAs under the guidelines of the International Civil Aviation Organization. The proposal also led to the launch of a formal consultation, in which the CAA called on gyroplane owners and operators to view and comment on the proposal until March 13.
On April 15, the first gyroplane to receive a CofA debuted at AERO 2015, one of Europe’s largest aviation sector events, in Friedrichshafen, Germany. The CAA granted a type certificate to Rotorsport UK’s Cavalon Pro, thereby making it eligible for a CofA and subsequent commercial use. Gerry Speich, Rotorsport’s managing director, accepted the certificate from CAA general aviation unit leader Tony Rapson, who pledged his organization’s commitment to supporting the success of the UK’s general aviation sector. This follows the strategy of the CAA General Aviation Unit, which seeks to generate new market opportunities via the creation of a vibrant general aviation industry. The United Arab Emirates is currently drafting an investment law that would permit complete foreign investor ownership of firms in certain key industries. According to the country’s Economy Minister, Sultan bin Saeed Al Mansouri, the new law has entered an advanced stage of drafting. However, he didn’t indicate which industries the law would affect or specify when the law would be passed. Drafting and enacting major laws in the United Arab Emirates often takes multiple years. Until the new law passes, foreign investors may not own a majority percentage in any United Arab Emirates firm, unless the company is in one of the country’s economic “free zones.”
In the past, United Arab Emirates investors have opposed such reform, fearing that native companies might suffer from the foreign competition. However, recent drops in oil prices have bolstered the nation’s drive for diversification. The nation’s leaders hope that the proposed law, when enacted, will attract attention large number of foreign investors with the capacity to significantly expand the nation’s economic base. Mansouri has not confirmed exactly how the new law will work, but some finance professionals have suggested that it would require foreign-owned firms to bring new technologies into the country in sectors that are the most important for national growth. Government officials have previously expressed a desire to attract new technologies to key industries like aerospace. The drafted law comes at an important time in economic development. Last year, foreign direct investment in Emirati firms rose 25 percent. Mansouri stated that the government hopes to make foreign direct investment total 5 percent of gross domestic product in the coming years. In order to facilitate international legal negotiations, the International Chamber of Commerce (ICC) met during its Supply Chain Financing Summit in October 2014 to create a commonly shared understanding of supply chain finance terms that are now defined differently by various bodies and nations. Over the course of nine hours, 11 individuals discussed and drafted the set of definitions that will be released to the finance industry in January 2016.
Inconsistencies in language about trade financing have led to confusions and made it difficult to compare and negotiate across global supply chain finance services and products. Many of the issues surrounding supply chain financing lie not in using the same word to mean different things, but rather in using a multitude of terms for what is essentially the same solution. These terms mostly vary according to geographical locations, thereby making it extremely difficult for international parties to reach an agreement without intermediaries familiar with the various terminologies presented. For this first round of term standardizations, the ICC focused primarily on finance terms related to the supply chain, such as forfaiting, factoring, supplier finance, invoice discounting, and pre-shipment. These terms apply to a wide range of products and solutions in international trade, and language consistency is crucial for moving forward in this sector. Supply chain finance continues to grow at a rapid pace and business opportunities will only become more abundant with increased use of the Internet and other communication technologies. In addition, bank and non-bank entities have become involved in the industry, making now a critical time for creating a standardized vocabulary, especially in terms of cross-border trade. Positioning itself as one of the next global hubs for wealth management, Abu Dhabi is following the Singaporean model of banking instead of the more traditional Swiss model, which is largely based on secrecy. The new international financial center Abu Dhabi Global Markets (ADGM) has declared such secrecy an obsolete system. By adopting transparency, ADGM aims to propel itself, and Abu Dhabi as a whole, to a level in the banking industry on par with global institutions like the Basel Committee on Banking Supervision.
According to a report recently released by London-based international policy think tank Chatham House, the member states of the Gulf Cooperation Council alone use more primary energy than the entire continent of Africa. Moreover, this demand is predicted to double in 10 years if current growth rates of consumption do not slacken. In a world continually pressed by increasing energy demands, this is troubling news.
To address this issue, the UAE-UK Business Council hosted a forum during Abu Dhabi Sustainability Week in early 2015. A number of dignitaries from both countries attended the event, including experts involved with the oil and gas industries, environment and climate change, and local utilities. The focus of this year’s forum was on tightening business and information links between the UK and the UAE. The hope is to stir innovation in the field of energy efficiency, especially with regard to urban design, building efficiency, and water desalinization. These issues are of critical importance in the booming Gulf States, where an influx of investment places an ever-increasing demand on local resources. By joining together, leaders in the UAE and the UK are aiming to produce economically and environmentally viable solutions to the region’s growing energy demand before it becomes an unmanageable problem. Forfaiting, a practice that raises money for international trade, has changed significantly in the past 20 years to include more concepts, structures, and instruments. As a result, experts from the International Trade & Forfaiting Association and the International Chamber of Commerce released the first-ever guidelines for primary and secondary markets in 2012. Called the Uniform Rules for Forfaiting (URF), the guidelines provide rules governing international forfaiting transactions. Following standardized rules for forfaiting can eliminate risks, speed up transactions, and improve cash flow.
The forfaiting market is valued at more than $300 billion annually, and the URF serves as standard rules for bankers and other forfaiting users around the world. It provides clear definitions and practical model agreements that help to reduce disagreements between users and ensure that individuals and financial institutions around the world adhere to best practices for forfaiting. Several controversial subjects covered in the URF include forfaiting agreements and conditions in the primary market, liabilities, payments under reserve, and confirmations and conditions in the secondary market. An invaluable resource for all members of the international trade finance community, the URF is available in English and French. Both providers and recipients of finance transactions benefit from forfaiting. The practice encompasses buying and discounting trade and receivables related to trade, and it opens up provisions of finance to the global trading community. The ICC-ITFA Task Force on Forfaiting comprises about 20 members from banks and other financial institutions, and the group meets regularly to create booklets and presentations about forfaiting and the URF. Additionally, the task force answers questions and publishes opinions on forfaiting and the URF and strives to educate the trading community about the versatile financial practice. As the global forfaiting community expands, two international groups have partnered to foster cooperation between trade bodies. In February 2014 in Milan, International Forfaiting Association President Paolo Provera and Erik Timmermans, secretary general of the International Factors Group, signed an agreement of cooperation, recognizing the growing association between the trade finance and open account receivables finance communities. Members of the IFA and the IFG can now attend educational and networking events from both associations, and the groups will work together as much as possible to develop initiatives. Members also are encouraged to join each other’s associations so that they can share knowledge and best practices.
IFA, which was founded in 1999 and has more than 140 members, works with the international factoring, invoice finance, and asset-based lending communities to build business relationships and encourage good practices in the worldwide forfaiting industry. In the fall of 2014, IFA became the International Trade and Forfaiting Association, rebranding itself and expanding its board from seven members to nine. The association remains a safe and profitable place for members to do business with one another. IFG, an international trade association with 160 members, advocates for the invoice finance, factoring, and asset-based lending communities through education to support economic growth and employees. Based in Belgium, IFG is composed of a network of regional groups that enable members to meet and discuss local issues that affect them. All members remain globally connected through IFG’s international communications and events. IFG now has members in 60 countries, and membership is available to all providers who are active in the industry. The association strives to expand its membership by offering its members cost effective, value-added services. |
AuthorDr. Shahram Shirkhani works on behalf of prominent multinational corporations and financial institutions in addition to private entities based in Iran and surrounding countries. Archives
February 2016
Categories
All
|