Industry Update

The UK's data privacy watchdog has fined the Marriott Hotels chain £18.4m for a major data breach that may have affected up to 339 million guests. The Information Commissioner's Office (ICO) said names, contact information, and passport details may all have been compromised in a cyber-attack. The breach included seven million guest records for people in the UK. The ICO said the company failed to put appropriate safeguards in place but acknowledged it had improved. The first part of the cyber-attack happened in 2014, affecting the Starwood Hotels group, which was acquired by Marriott two years later. But until 2018, when the problem was first noticed, the attacker continued to have access to all affected systems, including: names, email addresses, phone numbers, passport numbers, arrival and departure information, VIP status, loyalty programme numbers etc. On that basis, the ICO said Marriott had failed to protect personal data as required by the General Data Protection Regulation (GDPR).

Source: https://www.bbc.com/news/technology-54748843

Abu Dhabi Commercial Bank (ADCB) reported Q3 2020 net profits of Dhs1.366bn, which were 3 per cent lower year-on-year, although it was up 11 per cent quarter-on-quarter. It reported a nine-month net profit from January-September 2020 of Dhs2.802bn, down 33 per cent compared to Dhs4.196bn in the corresponding period last year. Operating income increased 2 per cent sequentially to Dhs2.991bn in the third quarter this year, while its operating expenses were 14 per cent lower year-on-year at Dhs1.102 billion.Net impairment charges were recorded at Dhs504m, 25 per cent lower quarter-on-quarter on account of higher recoveries and releases.

Source: https://gulfbusiness.com/uaes-adcb-posts-q3-2020-net-profit-of-dhs1-3bn-down-3-y-on-y/

David Einkorn’s Greenlight Capital hedge funds rose 7.7% in October -- his best monthly performance all year -- after the value investor added to his short wagers. Greenlight’s October return pared this year’s losses to 9.6%, according to an investor update viewed by Bloomberg. It was Einhorn’s fourth straight positive month. “We are now in the midst of an enormous tech bubble,” Einhorn told investors in a letter this week, saying he had added a set of bets against “mostly second-tier companies and recent IPOs trading at remarkable valuations.” He also told clients his working hypothesis was that Sept. 2 was the top and the bubble had already popped. Homebuilder Green Brick Partners Inc., the primary driver of Einhorn’s gains in the third quarter, was a strong performer in October as well, with shares climbing 11%. The company is benefiting from low interest rates and pandemic-driven demand for single-family detached housing.

Source: https://www.bloomberg.com/news/articles/2020-10-31/einhorn-makes-7-7-in-october-after-adding-to-bubble-basket?srnd=premium-middle-east

Tata firm Tanishq plans to launch an exclusive 'UAE-inspired' design collection to woo Emirati customers. The $8.4 billion gems and gold jewellery market in the UAE, already bursting with Indian retail chains, is about to see the entry of Tanishq, a retail unit of Indian conglomerate Tata Group. Tanishq, making its foray into the international market with an exclusive showroom in Meena Bazar in Dubai, is busy finalizing plans to launch an exclusive ‘UAE-inspired’ design collection to woo Emirati customers. The Tata Group firm will also be offering specially curated jewellery and watches to attract the large multi-ethnic population in the UAE, besides the Indian diaspora.

Source: https://www.arabianbusiness.com/retail/453977-how-indian-giant-tata-aims-to-shake-up-the-uae-jewellery-market

Pizza Express will cut 1,300 more jobs across its 370 UK restaurants after sales dipped amid more coronavirus cases and restrictions. The losses come weeks after the firm said it would cut 1,100 jobs and close 73 restaurants. No further restaurants will close, it says, with this volley of losses split across the remaining sites. City centres are worst hit by the restrictions, it said, as diners stay at home or order food in."Our aim throughout these extremely challenging times has been to keep our team members and customers safe and to retain jobs for as long as possible," Zoe Bowley, Pizza Express managing director said. "Unfortunately, the recent increase in Covid-19 cases is again causing footfall to decline across the UK. "The company didn't say which roles are likely to be cut, nor which locations will lose staff.

Source: https://www.bbc.com/news/business-54740003

Dubai-based private equity firm Gateway Partners has acquired a 40 percent stake in the Gulf franchise of coffee and breakfast chain Tim Hortons in a deal reported to be worth $50 million, according to reports. The franchise is owned and operated by Dubai fashion and lifestyle retail conglomerate Apparel Group. Arabian Business has contacted Gateway for comment. Information on the company website states the investment was made in February this year.

Source: https://www.arabianbusiness.com/travel-hospitality/444606-dubai-based-gateway-partners-takes-40-stake-in-tim-hortons-gulf-franchise

Debenhams says it has struck deals with landlords to keep most of its 142 stores open after it fell into administration last week. It has agreed terms on 120 branches and is in "advanced" talks on the remainder of its estate, it added. But seven stores will not reopen when the government lifts coronavirus restrictions on non-essential shops. However, the department store chain acknowledged a "handful" more sites could be at risk. Chief executive Stefaan Vansteenkiste said: "I'm delighted with the progress we are making with our landlord discussions, which reflects the pragmatic view the vast majority of them are taking of the current market conditions.

Source: https://www.bbc.com/news/business-52330268

Dubai-based Shuaa Capital has revealed a net profit of AED47 million ($12.8m) in its annual results. The company, which was created by the merger of Shuaa Capital and Abu Dhabi Financial Group (ADFG) last year, held its first general meeting virtually where it reported an EBITDA of AED186m ($50.6m), including merger costs. Jassim Alseddiqi, chief executive officer of Shuaa Capital, said: “Shuaa’s management team is committed to continuing to deliver on the synergies and sustainable value arising from the merger with ADFG.

Source: https://www.arabianbusiness.com/banking-finance/445264-dubais-shuaa-capital-announces-128m-annual-net-profit

U.K. Chancellor of the Exchequer Rishi Sunak extended a government program that pays most of the wages of employees furloughed because of the coronavirus, averting potentially thousands of job losses. The three-month Coronavirus Job Retention Scheme will now run until June 30, Sunak said in an e-mailed statement on Friday. The extra month could add an extra 14 billion pounds ($17 billion) to the program’s expected cost of 42 billion pounds. Business leaders had warned that unless the program was extended, companies would have to start to process of laying off workers as soon as Saturday because employers are required by law to hold a 45-day consultation period before making redundancies. Carolyn Fairbairn, director general of the Confederation of British Industry, said on Friday “thousands” of jobs were at risk.

Source: https://www.bloomberg.com/news/articles/2020-04-17/u-k-extends-virus-job-retention-program-to-avert-mass-firings?srnd=economics-vp

Sir Philip Green's Arcadia group is serving notice on landlords to walk away from more than 100 stores by the end of the summer. The fashion group owns brands such as Topshop and Dorothy Perkins and has 550 stores across the UK, but all are shut due to coronavirus restrictions. Arcadia was struggling before the pandemic. In 2019 it did a deal to survive with landlords to cut rents and close 23 stores - and 12 more closed this year. Like other retailers grappling with the fallout from deserted high streets and a collapse in sales, Sir Philip's retail empire has been thrown into turmoil.

Source: https://www.bbc.com/news/business-52333380