United Arab Emirates Companies Invest In Serbia

Representatives of Serbian government and “Al Dahra” company from United Arab Emirates have signed a document which will allow the company to invest 100 million euros in irrigation systems and 100 million euros in shares of eight agricultural collectives.

The contract also predicts that “Al Dahra” invests in building food processing factories. Talks will be held with representatives of that Fund about potential line for long-term crediting of individual agricultural producers so that they could obtain new production equipment, says Serbian finance and industry Minister Mladjan Dinkic.

He also mentioned the possibility of first bank from UAE opening on spring in Serbia.

UAE Investing In Serbia

Minister of Finance and Economy Mladjan Dinkic has signed a pre-contract on investments in Serbian agriculture with the Al Dahra company in Abu Dhabi.

The pre-contract with Al Dahra company predicts that the agri-industrial company invests around 200 million euros in eight agricultural state-owned farms in Serbia.

“El Dahra will invest an amount of 100 million euros in building the irrigation systems and purchase of modern equipment, while an extra 100 million will be invested in gaining 80 percent of stake in mutual firms, in which the state will keep the 20 percent of ownership”, says the statement by the Finance Ministry.

The UAE company will, besides strengthening the capacities in agricultural complexes, hire local farmers as collaborators, because it intents to sell the product surplus to foreign markets, using the company’s trading network consisting of many countries.

Minister Dinkic signed with his colleague Obaid Humaid a contract to avoid the double taxation.

Leave Serbia If You Dislike New Rules!

Serbian Finance Minister, Mladjan Dinkic, has presented a bill on financial obligations.

Changes in the current law represent an attempt to regulate the sector of financial obligations. Many small businesses have been forced to declare bankruptcy after large companies, big supermarket chains especially, failed to settle their debt towards small suppliers for far too long.

Leader of United Regions of Serbia party, Mladjan Dinkic, says he wants to send a message to all trade chains they are free to leave Serbia if they fail to meet the 60-day deadline for settling financial obligations towards their suppliers, in order to make space for the firms able to live up to their obligations.

Dinkic has announced the deadline for settling financial obligations is going to be set at 45 and 60 days for businesses and individuals respectively. The same applies to debts of the private firms and individuals against the state.

”We do not wish to water down the new law. It will either be strict or it will not be passed”, Dinkic said.

The law is supposed to come into force on March 31, 2013. Its implementation will not be retrospective.

The average time for settling financial obligations in Serbia has been 134 days, compared to the regional and the EU averages of 69 and 40 days respectively.

Serbian state institutions often fail to timely meet their financial obligations as well.

Jat Airways At The End Of Runway?

Serbian government is planning to restructure and rebrand the national air-carrier Jat Airways by the end of the year.

Serbian Finance Minister, Mladjan Dinkic, says that the current situation in the company is unsustainable. He sees declaring bankruptcy of Jat Airways as a necessity.

Serbian Transport Minister, Milutin Mrkonjic, says the government has already decided to form a separate company that would carry Jat Airways debt load in order to allow a new national air carrier to start afresh.

Serbian Finance Minister is to present a comprehensive plan for Jat Airways at one of the forthcoming government sessions. The government has refused a request from Jat Airways for further 35 million euros worth of subsidies.

According to Minister Dinkic, there are two possible scenarios for resolving the issue. If Serbia decides to form a new air carrier alone, it will have to provide the state guarantees, worth 140 million dollars in order to fulfill the existing obligation to lease 12 Airbus planes.

However, minister Dinkic says the preferable option would be a partnership with the United Arab Emirates state-run airline Etihad. He says that the principle objective of the cooperation would be construction of a cargo terminal at “Nikola Tesla” Belgrade airport, which would serve as a springboard for Serbian food export.

In 2011, the estimated loses of Jat Airways were 27 million euros. In 2010, Serbian government failed to sell the company to both Turkish Airways and Baltic Aviation Systems, while two years prior an auction collapsed due to lack of interest.

Serbian media recently reported Belgrade was negotiating to sell the airline to Air Asia. However, the Malaysian company denied its interest in the purchase.