IKEA, the world’s largest furniture group, has said it expects a decline in profits for the next two years due to a potential price hike of its products amid the global supply chain crisis and increasing cost of raw materials.
The Netherlands-headquartered multinational conglomerate’s net profit in the year ended August decreased 17 per cent to 1.4 billion euros
The Netherlands-headquartered multinational conglomerate’s net profit in the year ended August decreased 17 per cent to 1.4 billion euros despite a record 6 percent growth in online and in-store sales across its franchise system to 41.9 billion euros. The company’s profit was down 4 percent in the pre-pandemic fiscal 2019.
The company, which makes money mainly from sales of goods to its franchisees, said in October retailers’ sales totalled a record 41.9 billion euros, up 6 percent on the year and up 1 percent from fiscal 2019 as locked-down consumers spent more than ever on their homes, and despite product shortages.
Privately-held Inter IKEA said in its annual summary that the coronavirus pandemic affected its operating income in FY21. The biggest cause was the steep increase in transport and raw material prices in the second half of the financial year, it added.
In an interview, Martin van Dam, Inter Ikea’s chief financial officer, said that the company is expecting supply disruption to continue along with the increase in raw material and energy prices during the fiscal year 2022.
He added that the fiscal year 2022 will not be easier than the previous fiscal year.
The company would increase prices for the first time since 2019. Van Dam said they want to stay as low-priced as possible, adding that the move does not necessarily mean surges for customers as this depended on how much retailers such as Ingka Group passed on and how much they adopted.
However, he said the hike in prices is unavoidable because of the severity of problems in supply chains.
Inter Ikea spent 250 million euros to mitigate supply chain disruptions, from buying its containers to moving goods by trains rather than by ship.
Shares in Elon Musk’s aerospace and technology company SpaceX have surged on their trading debut in New York, in what is being described as the largest initial public offering in history.
The stock climbed as much as 30% in early trading on the Nasdaq, pushing the company’s valuation above $2 trillion and briefly placing it among the most valuable firms in the United States.
The listing, which raised more than $75bn, marks a dramatic milestone for the firm founded in 2002 by Elon Musk, who has become one of the most influential—and divisive—figures in global technology.
Speaking at a launch event in Texas, Mr Musk said the company’s ambitions extended far beyond Earth. “SpaceX wants to be able to take you to the Moon, take you to Mars, and ultimately beyond,” he said, adding that its teams would “make that happen” for customers.
The billionaire entrepreneur—Elon Musk—has reportedly become the world’s first trillionaire following the surge, according to market estimates cited in the offering’s early trading performance.
The IPO priced more than 555 million shares at $135 each, valuing the company at just under $1.8 trillion ahead of its market debut. Within hours of trading, prices peaked at around $175 per share.
The listing also allows for the potential sale of an additional 83 million shares, which could lift total proceeds beyond $86bn.
Investor demand was reported to be heavily oversubscribed, reflecting strong interest in both space exploration and the company’s expanding role in satellite communications and artificial intelligence.
SpaceX has increasingly evolved from a rocket launch provider into a broader technology conglomerate, incorporating satellite operations and artificial intelligence assets linked to Mr Musk’s wider business portfolio.
Market analysts say the listing is being closely watched as a potential benchmark for other high-profile technology firms, including artificial intelligence companies expected to pursue public offerings in the coming months.
The debut also comes against the backdrop of Mr Musk’s increasingly polarising public profile, shaped by his political commentary, business decisions, and ownership of social media platform X.
Despite the controversy, investor appetite for the company appears undiminished, with strong early demand signalling continued enthusiasm for Musk-led ventures.
International visitors flying to Abu Dhabi with Etihad Airways will automatically receive complimentary medical travel insurance for up to 15 days, under a new initiative launching in July 2026.
The cover will be provided at no additional cost on eligible Etihad-operated flights from July to December 2026, with no application required. It will apply only to passengers whose point of origin and point of sale are outside the UAE.
Travellers using Etihad’s stopover programme in Abu Dhabi will also be covered during their stay, subject to terms and conditions.
The initiative has been launched in partnership with Department of Culture and Tourism Abu Dhabi and will be underwritten and administered by Daman National Health Insurance Company.
Officials say the scheme is designed to simplify travel planning and enhance the visitor experience, particularly during peak tourism periods when the emirate is targeting higher stopover and leisure traffic.
“This initiative ensures we meet that demand with an exceptional, end-to-end visitor experience,” said Saleh Mohamed Al Geziry, Director General for Tourism at DCT Abu Dhabi.
Etihad’s chief executive Antonoaldo Neves said the offer would allow passengers to focus on their visit rather than pre-travel formalities, calling it an example of closer cooperation between an airline and a destination.
Abu Dhabi has been expanding its tourism offerings in recent years, with major attractions including Saadiyat Island, Yas Island and the Sheikh Zayed Grand Mosque, as it seeks to strengthen its position as a global stopover hub.
The Ministry of Human Resources and Emiratisation has unveiled strict new rules requiring private sector companies to pay employee salaries on the first day of every month starting June 1, 2026.
The move, introduced under Ministerial Resolution No. 340 of 2026, is part of a wider push to strengthen wage protection and improve labour compliance across the UAE.
Salaries must be paid on time
Under the new regulation:
Salaries for the previous month must be transferred through the approved Wage Protection System (WPS) or another authorised payment platform.
Any payment made after the due date will officially be considered delayed.
The ministry also stated that companies must provide proof and documentation confirming salary transfers.
What happens if companies delay salaries?
Authorities outlined escalating penalties that become more severe the longer salaries remain unpaid.
From Day 2:
Companies enter electronic monitoring
Warning notices are issued
From Day 5:
Suspension of new work permits may begin
Employers are formally notified to clear the unpaid wages
From Day 11:
Administrative fines apply for repeat violations
Companies may be downgraded to the third business classification category
From Day 16:
Labour disputes may be automatically registered for workers
More permit restrictions could follow, especially for larger companies and sectors such as:
Construction
Transport
Cleaning
Security
Recruitment services
From Day 21:
For companies employing 50 or more workers, repeated violations could lead to:
Referral to public prosecutors
Asset seizure orders
Travel bans on company officials
When is a company still considered compliant?
The ministry clarified that businesses remain compliant if they transfer:
At least 85% of total wages are on time
Employees also won’t be classified as unpaid if missing amounts are linked to legally documented deductions.
Some sectors exempt
The decision excludes:
Short-term permits under three months
Fishing boats
Citizen-owned taxis
Banks
Places of worship
The UAE has long pushed for stronger worker protections, but this marks one of the toughest enforcement frameworks yet for salary delays.
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