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Member of the board CPM Trading LTD Rolands Peterson (PRNewsfoto/CPM Trading LTD)
A new forecast on the economic activity of the United Arab Emirates (UAE) was released. In 2018 it was constant.Rolands petersons de facto It was provided by oil production volume, recent business reforms and constant activities in other areas. In 2018 the UAE for the first time overachieved its OPEN oil production goal.Rolands petersons de facto
The UAE is preparing for World Expo in 2020, so a big amount of investment is being made to improve infrastructure. The state could expect an increase of tourism area dynamics, but it will need additional investments not related to oil production and crude oil refining.Rolands petersons de facto
This country could still be described in terms of development as long as its population grew from 9 million in 2013 up to 10,1 million in 2017; unemployment fell from 2,8% in 2013 to 1,7% last year[1]. Even though in 2014 many infrastructural projects were postponed, this year they will be continued, moreover there are new general plans for the following two decades. It was calculated that a recently adopted 5% of VAT will help to gain income in the amount of 12 billion euros during the first year of implementation[2].
All the Emirates, especially Dubai and Abu Dhabi are continuing their efforts to vary the economy and decrease the amount of activities related to oil products. In addition to the infrastructural projects, Abu Dhabi has made significant investments to the alternative energy sources creation, according to Rolands Petersons, a member of the board of Norman Logistics Sp.zo.o. who offers his thoughts on the UAE economy.Rolands petersons de facto
Despite having suffered crises, this country is still a demanded business partner among many world economies, it is being forecasted that before the World Expo in 2020 the UAE will become even an more demanded business partner worldwide.Rolands petersons de facto
Juergen Thomas Steinmetz has continuously worked in the travel and tourism industry since he was a teenager in Germany (1979), beginning as a travel agent up through today as a publisher of eTurboNews (eTN), one of the world’s most influential and most-read travel and tourism publications. He is also Chairman of ICTP. His experiences include working and collaborating with various national tourism offices and non-governmental organizations, as well as private and non-profit organizations, and in planning, implementing, and quality control of a range of travel and tourism-related activities and programs, including tourism policies and legislation. His major strengths include a vast knowledge of travel and tourism from the point of view of a successful private enterprise owner, superb networking skills, strong leadership, excellent communication skills, strong team player, attention to detail, dutiful respect for compliance in all regulated environments, and advisory skills in both political and non-political arenas with respect to tourism programs, policies, and legislation.Rolands petersons de facto He has a thorough knowledge of current industry practices and trends and is a computer and Internet junkie.Rolands petersons de facto

The transport development has caused objective problems for traffic in cities around the world, including Latvia, and the reason for this is a rapid increase in the number of vehicles.Rolands petersons de facto Road congestion is the most urgent problem in a trip planning because it affects the total time of transportation and, therefore, costs that have a particular relevance to the logistics industry.Rolands petersons de facto The quality of the roads, a painful subject in the past, has a significant impact on transportation time. Without high-quality roads, it is impossible to improve the efficiency of transport, which, in the context of economic globalization, is said to be one of the main directions for the logistics development.

Promises against statistics

At the end of 2017, according to the report "Global Competitiveness Index", which was annually compiled by experts from the World Economic Forum, Latvia was not ranked among the top 100 countries of the world's rating. (out of 137 countries participating in the ranking, Latvia took 107th place, and Lithuania and Estonia took the 37th and 38th places) Despite this, VAS (State Roads of Latvia) announced that, despite the increase in traffic on Latvian roads, their quality has been improved in recent years.

EU assessment - Stable 3 points.

In 2017, 65.1 million euros were spent on the development of the national roads, including 32.3 million for the summer period works, and 32.8 million for the winter period works. In the same year, it was also planned to spend 37 million more, compared with the previous year.Rolands petersons de facto However, even these investments have not resulted in the average level of road quality in the European Union. According to the latest report, the average level in the EU is estimated at 4.76 points, Latvia, compared to that has been given 3.05 points.

The state of the roads not only hinders the development of the logistics industry but also contributes to the disproportionate level and the pace of social and economic development of the regions.Rolands petersons de facto The most remote regions of Latvia can develop tourism facilities, offer industrial premises for entrepreneurs, etc. however, if there is no road system to get to these cites, no results shall be expected.Rolands petersons de facto

Financing is eight times less than it needs to be.

"Requests for the organization of roads," "Road quality is catastrophic" - these headlines often appear in the mass media, while road maps try to reduce the existing damage by implementation of available sources, however, there is no sign of a significant improvement, when the funding is eight times less than it is necessary.Rolands petersons de facto At the same time, we make the mistake of struggling only with the consequences of the disease, when we need to identify the root of the problem and take the preventive measures.

One of the main problems that can be figured out now is the climate of the country, which in Latvia will not change significantly in the future, therefore, the problem will remain constant. The number of vehicles will also increase, so the question is: how to increase financing, which is the most important addition to the urgent issues. 130 million euros are required annually for maintenance and repair works of local and gravel roads but this amount cannot be provided only by EU funds.Rolands petersons de facto It is also completely unclear how the situation will look like in 2020, after the end of EU funding program.

Without the excise tax on fuel, there is no chance for survival

The fact that the change is expected in 2020, the spring of 2018 is said to be the moment to start an intensive work and stimulate actions - change existing arrangements related to the existing tax system (only a third of the tax, paid by road users, are redirected to roads).Rolands petersons de facto The time when it was possible to pull out a part of the income from tax has passed. Furthermore, we need to increase the number of public-private partnership projects in the sphere of the road construction, although this stage requires a proper preparation.Rolands petersons de facto

In addition to financing, other necessary support measures need to be introduced: dumping water from roads in certain areas, timely planning, more restrictive control on roads, etc.