The value and the number of project awards fell 43.3% Q-o-Q and 18.32% Q-o-Q, respectively, in 2Q2011. However, we note that decreased activity is a general trend in the second quarter. Construction dominated awarded projects (29.3% of total), led by Saudi Arabia. There was a notable rise in industrial project awards from Abu Dhabi in 2Q2011. Qatar saw a rise in project numbers, but not value, which is understandable as costlier gas projects are being completed.

Second quarter profit fell 69%, compared with a year ago, as it wrote off its entire 30% investment in Dubai Bank, the lender that was bailed out and taken over by the government earlier this year.

Following a recovery in foreign visitor arrivals to the UAE in 2010, recent data suggest a solid start to2011. In Abu Dhabi, latest figures for first four months of 2011 record a favourable 10% year-on-year (yo-y) rise in the number of tourists (including UAE arrivals) at hotels and hotel apartments, to around694,000 guests. The authorities in Dubai plan to increase their participation in international tourismexhibitions and workshops in 2011, with over 25 campaigns in 10 countries. Latest official statistics showthat the number of guests at Dubai hotels increased to over 1.8mn in Q111, representing good growth of14% y-o-y. In Sharjah, figures for Q111 show reasonable growth of 4.9% y-o-y in the total number oftourist arrivals (including UAE nationals) in hotel and hotel apartments (to about 421,500), while data forApril show an 11% increase in visitors, compared with the same month in 2010. During Q1, Europeanarrivals accounted for some 47% of total visitors, while tourists from the Gulf Cooperation Council(GCC) and Asia accounted for 29% and 11% respectively.HospitalityAbu Dhabi?s hospitality sector recorded very strong performance in the early part of 2011. In the periodJanuary-April, guest nights increased a buoyant 26% y-o-y, to 2.1mn nights. Over the same period,occupancy levels were up 10% y-o-y to 72%, while the average length of stay increased 14% to just overthree nights. Traditional European source markets performed well with arrivals from the UK andGermany both rising 19% y-o-y, and visitors from France and Italy growing a sizeable 35% and 20%respectively. Guests from Saudi Arabia were up 46% y-o-y, arrivals from Russia rose 50% and touristsfrom India ? now a key source market ? increased 29%. In Sharjah, growth in the sector has also beenstrong, with the total number of hotel and hotel apartment room nights sold in Q111 at 478,456, a healthyincrease of more than 16% compared with Q110. The overall occupancy rate f

The newly published UAE Power Report from BMI forecasts that the country?s power consumption willincrease from an estimated 69TWh in 2010 to 102TWh by the end of the forecast period, assuming 4.0%average annual growth. After power industry usage and system losses, we see surplus supply rising fromthe theoretical 11.9TWh level seen in 2010 to 14.6TWh by 2020, assuming 3.8% average annual growthin power generation during the period.UAE power generation in 2010 is put by BMI at 80.8TWh, having fallen slightly from the 2009 level.BMI is forecasting an average 3.2% annual increase to 94.7TWh between 2011 and 2015. Thermalgeneration, comprising coal, gas and oil, is expected to grow by 3.2% per annum during the period to2015, but growth looks set to accelerate later in the decade.We forecast that gas-fired power generation will climb from 79.3TWh to 92.7TWh by 2015, representing97.9% of generation by the end of the forecast period. Virtually all new generating capacity is expected tobe gas-fired. DEWA is looking to invest in a syngas power plant in order to boost power-generatingcapacity in Dubai. The technology used in syngas plants is gaining favour in Europe and North Americaas the quest for low-carbon emitting power generation continues. Following this trend, for practical andstrategic reasons, the UAE has several plans to implement new technologies for its power sector.In September 2010 Abu Dhabi?s state-owned Emirates Nuclear Energy Corporation (ENEC) choseSwiss investment bank Credit Suisse as the financial advisor for its nuclear energy project in the UAE.The UAE plans to build four nuclear power plants with a combined capacity of 5.6GW. Despiteconsiderable solar generating potential, renewable energy is not expected to contribute significantly tooverall generation during the forecast period. The Abu Dhabi government is expected to publish a broadenergy policy that will emphasise its commitment to generating 7% of the total

Etisalat, in a statement posted on the Abu Dhabi stock exchange, said the two companies had "renewed the management agreement, which was due to expire on Dec. 22, 2011 for a period of five years starting from Dec. 23, 2011."