Our Move Towards A Greener Future

We seek excellence in every aspect of our business and have commited ourselves to minimizing the environmental impact
from our business operations.
With companies focusing on shifting towards being more technological and environment concerned, we too are striving towards
attaining that goal by managing waste generated from our business operations according to the principles of reduction, re-use
and recycling. We are further reducing our consumption of resources and improve the efficient use of those resources
We are sure our readers will appreciate the move to Focus e-Newsletter and your collective efforts shall help us in attaining
our goals. Would appreciate to know your views and suggestions about our Focus E-Newsletter, you may contact me at
adel.maniar@crowehorwath.ae, Tel: +968 9321 0567.
Adel Maniar
Director - Compliance & Communications
Horwath Mak

Dubai Expo 2020:

Beginning of a new era
It is hard to miss the fact that Dubai is a candidate city in the
Expo 2020 bid. With its winning intentions plastered across
billboards and websites, the emirate has set out to woo one
and all with its promise of transforming the economy once the
city wins the bid for this coveted international exhibition.
Should Dubai be awarded as the host city of Expo 2020, it
would be the first time the event has come to the MENASA
(Middle East, North Africa and South Asia) region. Expo 2020
is a significant opportunity for Dubai to share its unique
talent, exchange ideas with sister nations and explore new
avenues of collaboration. With the UK and France backing
the emirates bid to host Expo 2020, the sentiment for Dubais
winning candidacy is internationally upbeat.

Why Dubai?
In a very short period of time, Dubai has risen from the very
grains of the desert, gracefully turning into the pearl of the
Gulf. A modern city, with skyscrapers competing to reach the
highest cloud, thats Dubai.
Dubai, given the current consequences of the Arab World, is
almost a miracle. With 2.106 million people living in Dubai,
and over 180 nationalities, Dubai is the definition of bridging
the gap between countries of different backgrounds. Its a
place where people from all the corners of the Earth come
together to exchange not only ideas, but also cultures.

Contents

Page

Dubai Expo 2020: Beginning of a new era

1
UAEs Real Estate Market
2
ISA-600 Special Considerations
3
Client Profile
3
Hadith 4
Contacts 4

Tourism, construction and hospitality are the sectors set to see

monumental growth, and even the mere preparation for the bid has
thrown Dubais economy into frenzy. An economic impact report
released by the Dubai government has estimated that 90 per cent
of employment opportunities between 2018 and 2020 would arise
from the lead up to the expo. Out of this 90 per cent, 147,000
jobs would be created just within the travel and tourism sector. For
every new expo employee, approximately 60 additional jobs will be
sustained across the MENA economy.
For Dubai and the UAE, the expo will throw the spotlight on the
countrys potential as a growing business hub thus boosting its
profile internationally. Besides the typical benefit of enhanced
infrastructure, the UAE could expect positive global media
exposure. Emiratis could show the world, particularly the business
world, that the country is an open, tolerant, affluent place keen to
do business. There would be an obvious boost to tourism and job
creation along with the construction industry picking up pace due
to the infrastructure development.

Expos effects not traditional

The announcements of infrastructure development in the emirate

are already in place if Dubai wins the bid to host Expo 2020. The
Roads and Transport Authority (RTA) has already announced that
the expansion plans of the red line will be fast-tracked in November
if the city wins the bid. Dubai Metro, which began operations during
2009 with the red line, has recorded 43,552, 110 users during the
last six months.

For Dubai and the UAE as a whole, hosting such a highcaliber exhibition could fuel the future pillars of the economy.

The key objectives as d3 are to facilitate the on-going growth of

the Emirate and to facilitate employment across the value chain.

Also, because of its geographical location and Emirates

Airlines as one of the leading airlines in the aviation industry
serving almost all the corners of the world, Dubai is the kind of
place that offers everything and this city has taught its people,
its to think, and most importantly, do big.

Retail Segment
According to Business Monitor International, the UAEs retail
market will be worth Dhs151m by 2015. The remarkable growth
seen in the sector over the past twelve months was in part due
to 12% growth of Dubais luxury goods market. d3 aims to
capitalize on this market potential by becoming the center of
gravity for design, fashion and luxury as businesses within these
industries flock to the Emirate to showcase their creations to
one of the most diverse communities of consumers in the world.

Tourism

growing this figure in line with Dubais Tourism Vision 2020, the
Emirate has the potential to eclipse London as the capital of
retail spending.
As stated by His Highness Sheikh Mohammed Bin Rashid Al
Maktoum, Vice President and Prime Minister of UAE and Ruler
of Dubai, once said, Most people talk, we do things. They plan,
we achieve. They hesitate, we move ahead. We are living proof
that when human beings have the courage and commitment
to transform a dream into reality, there is nothing that can stop
them. Dubai is a living example of that.

Tourists account for 40% of global luxury spend so the potential

of this market in terms of revenue generation is substantial. By

Dr. Khalid Maniar

Founder & Group Managing Partner
Horwath Mak
khalid.maniar@crowehorwath.ae

UAEs Real Estate Market

4. Department of Real Estate Registration of

Sharjah (DRER):

The Real Estate Market of U.A.E. was once considered to be the

most lucrative real estate market of the world giving substantial
and quick returns to the investors. Presently, with established real
estate governing bodies & stringent regulations on developers,
investors shall again find the real estate market flourish.

It governs the registration of real estate projects and the issue

of permission for the sale of units in jointly owned buildings in
Sharjah. Licenses may be issued only to UAE and GCC nationals;
exceptions when stated otherwise by the Ruler

Due to the significant losses suffered by investors & mortgage

providers associated with the real estate sector in UAE, most
become hesitant towards the market & its economy. Following
Dubais regulations of governing the real estate market, other
Emirates have also inked the laws and set up governmental
departments overlooking the affairs of the Developers and
investors. Below is a brief overview of real estate governing
bodies in UAE.

1. Real Estate Regulatory Authority of Dubai (RERA):

Allows companies that are registered with the Dubai Department
of Economic Development (Dubai DED), with real estate
development activities noted in their trade licenses, to engage
in development activities. Such Dubai DED companies must
be 100% owned by UAE nationals. In addition there are is a
set of mandatory registration documentation required by the
Developers to be submitted to Dubai Land Department.
Pursuant to Law No 8 of 2007 (Escrow Law), only RERA
registered developers may apply to open an Escrow account.
Submission of the developers projects audit report is an
essential requirement by RERA

2. Abu Dhabi Department of Economic Development

(Abu Dhabi DED):
Any company intended to carry out real estate development
should apply to the Abu Dhabi DED for a commercial license that
would enable it to mention real estate enterprises, investments
and management as one of its authorized activities. There is
no restriction for foreigners or GCC national own companies to
apply for a license to engage in development activities

3. Ajman Real Estate Regulatory Authority (ARRA):

It is pursuant to Amiri Decree No 11 of 2008 regarding the
establishment of ARRA and Amiri Decree No 8 of 2008 as
amended by Amiri Decree No 12 of 2008.

5. Ras Al Khaimah Investment Authority (RAKIA):

It is pursuant to Amiri Decree No 22 of 2008 concerning
Guarantee Accounts of Real Estate Developments in the Emirate
of Ras Al Khaimah.
RAKIA maintains a special register called the Register of
Developers that records names of developers licensed to carry
out real estate developments

A Prediction of The Future:

Presently Middle East remains lucrative for global property
investors.
The current value of infrastructure projects in the GCC is
estimated at $408.8bn. Driven by strong growth, the U.A.E. still
holds the lions share of infrastructure projects, accounting for
$187.2bn.
So what makes the markets rise substantially and then fall at
an even more substantial rate? There are many factors to this,
well explained, including careless financing by mortgage lenders
and high speculation in the market. U.A.E. is now much more
strengthened in terms of regulatory bodies overlooking the
affairs of Developers and investors in the market.
Analyzing the current scenario, property speculators are back
in Dubai, aiming to make their fortunes by buying properties for
cash, then selling them within months, weeks or even days. Its
a sign, some people fear, that Dubai risks repeating the mistakes
of the past.
Dubai is certainly monitoring the market more closely now than it
did before the crash and this shall in-turn make the market more
secure from an investors point of view.
Farhan Aqil
RERA Audit Manager
Horwath Mak
farhan.aqil@crowehorwath.a

Audits of Group Financial

Statements
ISA-600 Special Considerations
Definitions
Group Engagement team Primary auditors who are solely responsible to form
an opinion on the group financial statements.
Component auditor An auditor who perform work on financial information
related to a significant component for the group audit.

Responsibility
The group engagement partner is responsible for direction, performance
and supervision of the engagement, compliance with professional and legal
requirements and the group audit opinion (unless required by law, no reference of
the component auditor to be made in the group audit report). (ISA-600, Para-11)

Considerations for the group engagement team

Understanding the groups business nature, its components, internal
controls, LEPEST factors, use of service organization, polices, related
parties, control environment.
Assessment of the risks at the group and component level and their
responses.
Establishing overall audit strategy and materiality of the group.
Designing the nature, time and extent of audit procedures at the group level.
Competence of the component auditor.
Reviewing the planning, risk assessment and audit working papers of
component auditor and directing for additional procedures (if required).

Consolidation
The group engagement team will consider the following;
The consolidation process, instructions issued by group management to
components and evaluation of any fraud or possible management partiality.
Appropriateness of consolidation adjustments.

Subsequent events
The events between the accounting year end date and group audit report signing
date may require adjustments to or disclosure in the group financial statements
(Para 38 & 39).

Communication with component auditor and those

charged with governance
Regular communications with both are vital for the group engagement team to
ensure quality of work and to form appropriate opinion.
Nauman Ahmed
Senior Auditor
Horwath Mak
nauman.ahmed@crowehorwath.ae

Free Zone Profile

DuBiotech was launched in 2005 by His Highness
Sheikh Mohammed bin Rashid Al Maktoum, as
the first cluster in the region dedicated to Life
Sciences. DuBiotech is the major Life Sciences
Cluster in the Middle East, with a community of
over 120 Life Sciences companies; including Big
Pharma, Biotech, Biomedical device companies,
Contract Research Organizations (CROs), Venture
Capital firms and Life Sciences service providers.
It further offers 160 laboratory units with over
256,000 sq. ft. of leasable area, 10 million sq.
ft. of prime land and over 25 warehouses with
approximately 5,000 sq. ft. of area.
DuBiotech provides a regulated environment
and guidelines to assist clients in complying with
applicable Federal and Local laws and align with
the Parks vision.
The main objectives of the Science and Regulatory
Affairs department at DuBiotech are to:
Collect data related to targeted industry and
identify research areas of interest to the region
Develop alliances with research and
academic institutes to set up collaborations
with the targeted industry
Develop and implement Codes of Practice
(COP), providing guidelines to the industry
operating at DuBiotech
Develop alliances with government agencies to
facilitate and improve regulatory compliance.
Chandra Sekaran
Business Service Manager
Horwath Mak
chandra.sekaran@crowehorwath.ae

In the merit of the gain obtained by ones own work

On the authority of Al Miqdam (may Allah be pleased with him) who reported that:
The Messenger of Allah (may Allah bless him and grant him peace) had said: Nobody has ever eaten a better food than that
gained by ones own work; and that the Prophet David (may peace be upon him) used to eat from his own work.
This Hadith was reported by Al Bokhari, Abou Daoud, An-Nasai and others.
Khalid Mehmood, Partner Assurance & Advisory Services, Horwath Mak, khalid.mehmood@crowehorwath.ae

Office Directory
HORWATH MAK AUDIT OFFICES
UAE HEADQUARTERS
Level 21, The Prism, Business Bay
Sheikh Zayed Road,
P. O. Box 6747, Dubai, UAE
T +971 4 447 3951, F +971 4 447 3961
Contact Person: Zayd Maniar
zayd.maniar@crowehorwath.ae

JEBEL ALI
LOB 16, Office No. 16309
P. O. Box 262794, Jebel Ali, UAE
T +971 4 881 0902, F +971 4 881 0906
Contact Person: James Mathew
james.mathew@crowehorwath.ae

DUBAI INTERNATIONAL FINANCIAL

CENTRE (DIFC)
203 Liberty House,

P. O. Box 506705, Dubai, UAE

T +971 4 325 9900, F +971 4 325 9911
Contact Person: Saad Maniar
saad.maniar@crowehorwath.ae

DUBAI MULTI COMMODITIES CENTRE (DMCC)

Unit 28-G, AU Tower, Jumeirah Lakes Towers
P. O. Box 93084, Dubai, UAE
T + 971 4 453 9505, F +971 4 4539605
Contact Person: Nimish Makvana
nimish.makvana@crowehorwath.ae

SHARJAH
Suite 1501-1502, Golden Tower,
P. O. Box 6954, Sharjah, UAE
T +971 6 544 4344, F +971 6 573 0741
Contact Person: Atik Munshi
atik.munshi@crowehorwath.ae

HAMRIYAH FREE ZONE

LOB 2, G-16, Hamriyah Free Zone,
P. O. Box 49578, Sharjah, UAE
T +971 6 526 2031, F +971 6 526 2034
Contact Person: Saji George
saji.george@crowehorwath.ae

ABU DHABI
Office suite 602, 6th Floor, Tessco (UTS
Carrier) Building, Electra Street,
P.O. Box 109460, Abu Dhabi, U.A.E.
T: +971 2 678 1130, F: +971 2 678 1170
Contact Person: Nirav Patel
nirav.patel@crowehorwath.ae

AL AIN
F 6 Omeir Travel Agency Bldg.
Street 114, Abu Baker Siddiq St.,

P. O. Box 67461, Al Ain, UAE

T +971 3 766 6395, F +971 3 766 6394
Contact Person: Abraham K. Mathew
abraham.mathew@crowehorwath.ae

FUJAIRAH
51, Fujairah Insurance Bldg,
P. O. Box 1650, Fujairah, UAE
T +971 9 222 2005, F +971 9 222 3335
Contact Person: Surya Narayan
surya.narayan@crowehorwath.ae

RAS AL KHAIMAH
F-26, BC#1, Business Park, RAK Free Zone,
P. O. Box 16086, Ras Al Khaimah, UAE
T +971 7 204 6434, F +971 7 204 6435
Contact Person: Atik Munshi
atik.munshi@crowehorwath.ae

CONSULTING OFFICES
Dubai
Horwath Mak Business Consulting
1403, 14th Floor, Al Reem Tower, Al
Maktoum Street, Deira,
P.O. Box 82315, Dubai, UAE
T +971.4.2367588, F +971.4.2367589
Contact Person: Ilyas Manjara
ilyas.manjara@crowehorwath.ae

Contact Person: James Mathew

james.mathew@crowehorwath.ae

DUBAI

DUBAI

Horwath (UAE) Consulting

Level 21, The Prism, Business Bay Sheikh
Zayed Road,
P. O. Box 185708, Dubai, UAE
T +971 4 447 3959
F +971 4 447 3961

Horwath Mak International Consulting

401, ART Tower, Al Mina Road, Bur Dubai,
P. O. Box 118863, Dubai, UAE
T +971 4 393 0101, F +971 4 393 1513

Management Consultancy
Contact Person: Shashi Ashok
shashi.ashok@crowehorwath.ae

Information Technology
Contact Person: Binit Shah
binit.shah@crowehorwath.ae
International Taxation
Contact Person: Farooq Ladha
farooq.ladha@crowehorwath.ae
Islamic Finance
Contact Person: Khalid Mehmood
khalid.mehmood@crowehorwath.ae

SHARJAH
Horwath (UAE) Consulting

1904, Tower 400, Al Soor Road

P. O. Box 69605, Sharjah, UAE
T +971 6 551 5030, F +971 6 551 5020
Contact Person: Mahinda Medagedara
mahinda.meda@crowehorwath.ae

DUBAI
Horwath Mak Executive Resourcing
Level 21, The Prism, Business Bay,
Sheikh Zayed Road
P O Box 62303, Dubai, UAE
T: +971 4 447 3852, F: +971 4 447 3862
Contact Person: Robert Richards
robert.richards@crowehorwath.ae

OVERSEAS OFFICES
OMAN

OMAN

AZERBAIJAN REPUBLIC

AFGHANISTAN

Horwath Mak Ghazali LLC

8th Floor, Trade Center, MBD East
P O Box 971, P C 131
Muscat, Sultanate of Oman
T +968 2481 3989
F +968 2481 3915
Contact Person: Davis Kallukaran
davis.kallukaran@crowehorwath.om

Al Ghazali Management & Economic

Consultants
8th Floor, Trade Center, MBD East
P O Box 971, P C 131,
Muscat, Sultanate of Oman
T +968 2481 3989, F +968 2481 3915
Contact Person: Amarjeet Majumdar
amarjeet.majumdar@crowehorwath.om

Mak Azerbaijan Limited

Suite 19-20, Building 2, Saiyan Road 2,
P O Box AZ 1023
Baku, Azerbaijan Republic
T +99412 492 7856
F +99412 437 4126
Contact Person: Zamin Husseynov
zamin.husseynov@crowehorwath.ae

Horwath Mak
6th Floor, Kabul Business Centre,
Shah Rahey Now, Kabul, Afghanistan
T +93 783 544 922
M +93 784 008 491
Contact Person: Muhammad Gul
imran.gul@crowehorwath.ae