gulf business december 2011
TRANSCRIPT
-
8/3/2019 Gulf Business December 2011
1/116
POWERLETTERSThe regions top business
minds predict the year ahead
THE
VOLUME 16
ISSUE 08
DECEMBER 2011
Bahrain..............BD1.0
Kuwait...............KD1.0
Oman................RO1.0
Qatar..................QR
10
SaudiArabia.......SR
10
UAE..................DHS
10
ye
1996-2011
-
8/3/2019 Gulf Business December 2011
2/116
the explorer ii
EVERY ROLEX IS MADE FOR GREATNESS. SINCE 1971, THE EXPLORER II
HAS ACCOMPANIED EXPEDITIONS AROUND THE WORLD. IT FEATURES A
24-HOUR HAND, WHICH IS INVALUABLE TO SPELEOLOGISTS AND POLAR
EXPLORERS AS IT ALLOWS THEM TO DISTINGUISH DAY FROM NIGHT. THE
LATEST EXPLORER II FEATURES A 42 MM CASE AND IS THE IDEAL INSTRUMENT
TO HELP TODAYS EXPEDITIONS PUSH THE BOUNDARIES EVEN FURTHER.
-
8/3/2019 Gulf Business December 2011
3/116
-
8/3/2019 Gulf Business December 2011
4/116
-
8/3/2019 Gulf Business December 2011
5/116
-
8/3/2019 Gulf Business December 2011
6/116
AVAILABLE AT:
OMEGA Boutiques: BurJuman Deira City Centre
Dubai Mall Mall of the Emirates Mirdif City CentreSahara Centre Wa and at select Rivoli Stores.
Toll Free: 800-RIVOLI
-
8/3/2019 Gulf Business December 2011
7/116
w w w
o m e g a w a t c h e s c o m
PLANET OCEAN"Standing on the Moon looking back at Earth this lovely place you jus
came from you see all the colours, and you know what they represent
Having left the water planet, with all that water brings to the Earth in
terms of colour and abundant life, the absence of water and atmospher
on the desolate surface of the Moon gives rise to a stark contrast.
Buzz Aldrin, astronau
-
8/3/2019 Gulf Business December 2011
8/116
-
8/3/2019 Gulf Business December 2011
9/116GULF BUSINESS/ 7
GCC Today
14 Regional news, people, numbeRs and events
oPINIoNS
24 matein Khalid
The Arab world needs to rethink its development model.
26 dR tommy weiR
People leadership is the need of the hour.
28 taReK miKnas
Change is the way forward for the ad industry.
CoNTENTS12.2011 ers
1 9 9 6 - 2 0 1 1
14
COVER DESiGN: ROUI FRANCISCO
48LEAdING BUSINESS
mINdS FORECASt thE
REGIONS FORtUNES
FOR 2012.
POWERLETTERS
WHATS IN STORE FOR 2012?
THE
-
8/3/2019 Gulf Business December 2011
10/1168 /dECEmBER 2011
BRIEFING
30 banKing
UAEs bankers are packing up their suitcases to head home.
32 libya/gCC
Is the Gul happy with Libyas rising oil production?
34 aviation
GCC airlines went on a shopping spree at the Dubai Air Show 2011.37 FinanCe
The regional Sukuk market enjoyed a record year.
41 Commodities
Is gold losing its shine?
45 RaK
The Northern emirate draws in oreign investors.
FEaTURES
66 the aRab spRings long night
Its been a long road or revolution in the Arab region. Can the Gulcountries help their neighbours during the crucial transition?
74 pRoFile: Flydubaiydubai CEO on why the airline is expanding its horizons.
80 siR RoCCo FoRte hits abu dhabi
British hospitality tycoon launches a fve-star hotel in the capital.
84 a veRy publiC love aFFaiR
Can Emiratisation succeed in the UAEs private sector?
80
CoNTENTS
37
66
30
-
8/3/2019 Gulf Business December 2011
11/116
-
8/3/2019 Gulf Business December 2011
12/11610 /dECEmBER 2011
CoNTENTS
doWNTIME
99 tRavel
Explore history at Shanghais art deco palace, the Peace
Hotel. 102 CRuise
Reviewed: BMW 6 Series 650i.
104 aRt
Christies unveils new sales format in the Middle East.
106 booKs
Gulf Business rounds up a selection of business reading.
109 plaCes to be
Cantonese restaurant Hakkasan opens its doors at the
DIFC.
daTa CRUNCh
93 stats
Regional mergers, acquisitions and bond issuances.
REGULaRS
110 events
The Gulfs top business conferences.
112 gulF business pReFeRRed hotels
A selection of the regions top rooms.
114 in youR shoesDoug Speck, senior vice president, Volvo.
99 109
EdIToR-IN-ChIEF
Obai huai Al tayer
GRoUP EdIToR aNd MaNaGING PaRTNER
Ian Fairservice
GRoUP SENIoR EdIToR
Gina JonsonSENIoR EdIToR
Guio duken
EdIToR
Alicia Buller [email protected]
BUSINESS EdIToR
Jonaan Seik-miller [email protected]
BUSINESS WRITER
Aari Nagraj
EdIToRIaL CooRdINaToR BUSINESS
hila dSouza [email protected]
aRT dIRECToR
tarak Parek [email protected]
dESIGNER
Carlie Banalo [email protected]
JUNIoR dESIGNERRoui Francisco [email protected]
PhoToGRaPhERS
Farooq Salik; Navee Ae; Vikra Gawe; Vicor Besa
CoNTRIBUToRSRyan harrison; Ro micla; Peer Saw-Si; toasBoar; Arian mourby
SENIoR PRodUCTIoN MaNaGER S Sunil Kuar
PRodUCTIoN MaNaGER C Suakar
PRodUCTIoN CoNTRoLLER Binu Puranaran
GENERaL MaNaGER GRoUP SaLESAnony milne [email protected]
SENIoR advERTISEMENT MaNaGER
Abraa Kosy [email protected]
advERTISEMENT MaNaGER
Ajay maews [email protected]
dEPUTy advERTISEMENT MaNaGER
melroy Norona [email protected]
GENERaL MaNaGER aBU dhaBI
Joe marri [email protected]
SENIoR SaLES ExECUTIvE aBU dhaBIhaan Bawazir [email protected]
Prine by Eiraes Prining Press, dubai
hEad oFFICE: PO Box 2331, dubai, UAEtel: +971 4 282 4060, Fax: +971 4 282 4436,[email protected]
dUBaI MEdIa CITy: Office 508,5 Floor, Builing 8, dubai, UAE,tel: +971 4 390 3550, Fax: +971 4 390 4845
aBU dhaBI: PO Box 43072, UAE,tel: +971 2 677 2005, Fax: +971 2 677 0124,[email protected]
LoNdoN: Acre house, 11/15 Willia Roa,Lonon NW1 3ER, UK, [email protected]
EdIToRIaL SyNdICaTIoN dETaILStel: + 971 4 2824060, [email protected]
104
-
8/3/2019 Gulf Business December 2011
13/116
-
8/3/2019 Gulf Business December 2011
14/11614 /DECEMBER 2011
UAE TodAyTo MaRk ThE 40Th annivERsaRy of iTs founDing,wE havE DEDiCaTED ThE opEning Two pagEs of gCCToDay To ThE uaE.
98
76.51
69%
100
Te mber l brrel bll tt te uaE
re t e, mt t erl 10 er cet terld l reere.
Te 2011 etmte er te ere le exectc te uaE, ccrd te Cia wrld fctb.
Te ercete te uaE gDp lt er tt retrde ccted r, ccrd t te ctr Mter
fre Trde, se Lb al Qm.
Te re qre mle cered b ajm, te
mllet emrte te uaE, tted beteeumm al Q d srj.
The UAE turns 40,
but life is just beginning
i te cre rld tr, 40 er mere bl ee.
k d qee e reed r ler, ee r e bee
ed r ler d et te eed deelmet bee
brett, t rd t belee te uaE tll .
Te dcer l ab Db te erl 1960
eml mmet r te ee emrte tt ld eetll
rm te uaE 1971 d mc t bee ceed
debl te bc t elt. Bt te mbt d
te ctr leder, rm se Zed b slt al n
rd, e bee tl dr te t t t ere t
gDp exceeded $300 bll 2010.Te lt ceemet cttl cre d t ct
cr eer ectr. Emrte arle ll becme te rld
lret ertr de-bd rcrt b 2015; te ab Db
ietmet atrt e te rld bet ere
elt d; te ctr bt te rld tllet ter d te
lret mll; te Db itertl fcl Cetre
mjr tertl cl b; Mdr eer te
eld reeble eer d te ctr becme ee r
led rt eet rm l t f1.
Lt er, te ermet et t t becme e
te bet ctre te rld b 2021. arbl, te drem
cld becme relt lt er t tt.
-
8/3/2019 Gulf Business December 2011
15/116guLf BusinEss/ 15
UAE TodAy
2,268,000 Dhs52.2m
1985
The mber t the rld lret hd-tted crpet tht cver the
r the m pryer hll t the sheh Zyed grd Mqe ab Dhb.
The ell prce lcece plte mber
1 cted ab Dhb 2008,
hch hld the recrd r be the
rld mt expeve mber plte.
The yer hch Emrte arle, th trt-p
cptl $10 mll, mde t rt ht, k600, rm
Db t krch octber 25.
$600bnThe mt tht the uaE re et
re predcted t be rth by the ed 2012,
ccrd t the wht-bed ittte
r itertl fce.
-
8/3/2019 Gulf Business December 2011
16/11616 /DECEMBER 2011
GCC TodAy
++++++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
Gemstone bathtub
fetches Dhs6.4mn
DDF in 16% sales spike
The Le Grand Queen bathtub,made from the Caijou gemstone,managed to sell for Dhs6.4million at this years DubaiInternational Jewellery Week.The gemstone is apparentlyknown for its strong healingproperties. Organisers claimthat the luxurious bathtub is therst of its kind in the world.
Dubai Duty Free (DDF) has posteda sales total of $1.16 billion forthe rst ten months of the year,
a 16 per cent increase over thesame period in 2010. Perfumesaccounted for 14.6 per cent of allsales, generating $169 million, withgold close behind on $133 million.
On the Radar Gulf IPO market remains at
The market for initial public offerings
(IPO) in the GCC remained sluggish during
the third quarter of the year with only
two listings in the region, according to
PricewaterhouseCoopers (PwC). Both the
IPOs were in Saudi Arabia and raised a total
of $219 million, with Hail Cement raising$131 million and United Wire Factories raising
$88 million.
Steve Drake, head of PwC Capital Markets
Middle East, said that IPO activity in Q3 had
followed the same sort of flat levels as had
been seen in the second quarter. There were
just three listings in the region during Q2.
This is to be expected over the summer
months and through Ramadan, with any IPO
activity we are likely to see being in the fourth
quarter or more likely into 2012, Drake said,
adding that Saudi Arabia was the strongest IPO
market in the region.
The turmoil we are witnessing in Europeand the US is having an inevitable impact on
the regional credit markets as investor appetite
in the two economic zones for Middle East debt
has historically been strong, Drake said. It
is likely that we will see lower debt issuance
volumes or perhaps a shift towards a heavier
Asian market bias for issuers, he added.
are hr, te CEo Dyr al-Mrrq,
kfh-Br bdry, tted te
cmy ll ce, trd te ed
2011, eerl e rject tt ll clde
r redetl d cmmercl rel ette
deelmet.
al-hr l ted tt te rject ll
rde tble r r emet
Br cety ell rde bt
t te cmmercl deelmet te ld
tte c bee cetre ltcl
el rt te arb r.
You can start anairline with oneaircraft and i canmake moneY forYou in one month.
Ghaith al Ghaith, CEO flydubai speakingat a media roundtable at the Dubai Chamber ofCommerce and Industry.
SOAPBOX
Kuwaits Agility Q3down 42%Kuwait-based logistics companyAgility posted a 42 per centdecline in third quarter net protas revenues from its freightforwarding business dropped.Net prot for the three monthsending September 30 amountedto a total of $29.4 million, down
sharply from the $50.5 millionearned a year ago.
diyAr offErs
BAhrAin projECTs
gETTy
iMagEs
GCC TODAY REgionaL nEws, pEopLE, nuMBERs anD EvEnTs
-
8/3/2019 Gulf Business December 2011
17/116
-
8/3/2019 Gulf Business December 2011
18/11618 /DECEMBER 2011
GCC TodAy
gETT
y
iMagEs
MUBAdAlA BUys EMi sTAkE
ADIB prices $500m Sukuk How to rule
the world like...
Oman Oil has signed an initial pact with the Steel Authority of India (SAIL) to
jointly set up a gas-based steel plant in Oman with an estimated investment of
$3 billion. The plant will have a capacity of three million metric tonnes a year,
according to Indias steel minister Beni Prasad Verma.
The two government-owned firms are still finalising the feasibility report and
are planning to sign a final deal in the next six months.
Te abu Db ilmc B (aDiB)
rced t $500 mll 2016ilmc bd, e te b
ru te del crmed. Te
suu, lted Ld, ll yeld 3.78
er cet. Ctru, hsBC hld,
nmur, te ntl B abuDb d stdrd Crtered ere
te led mer te del.
aDiB eld everl vetr meet
a, Eure d te Mddle Et
lt mt bere u te suu.
Te leder curretly l t
sr-cmlt ud urce
mre trdtl mret dry u due
t lbl cl ccer.
Te b ld $750 mll, ve-
yer suu octber 2010.
suu uce te gCC re
e u rly 2011 t
creed t $14 bll dur te rt
eve mt te yer, ed
t $4.45 bll te crred
erd lt yer, ccrd t Zy.
cm suu Mtr.
Promote yourself
Crue Dub t mt r te rt
cree M: imble gt
prtcl t te Dub itertl flm
fetvl. Te tr eure tt e ly
te tlt uc or wrey
2005 e e jumed te cuc
re lve r kte hlme.
Do your own stunts
frm dl deruly utde te 124t
lr te rld tllet ter, te Burjkl, t jum cr trvell t 60
mle er ur, Crue t d
tut.
Diversify
i 1993, Crue rtered t rmer
et pul wer t rm Crue/wer
prduct d te cmy ce
c-rduced my mve.
love Dubai
ater t Dub r Mi4, Crue
red te cty bl. My mlyd i et ur eve t te ter r,
-rt, dr , , cub
dv, cmel rd, deert due b d
e tll ddt t ll tt tere t ejy!
e d.
brinG in the cash
Tu e t te t-r ctr t
te mmet, e re te t lce t
Tm alle frbe 2011 et d ctr
lt. Betee July 2010- 2011, te ctr
med t cet cl $22 mll.
Oman Oil joins hands with SAIL
ToM CrUisE
Mubadala Development, the
investment arm of the Abu Dhabi
government, has taken a stakein British music publisher EMI
as part of a consortium led by
Sony/ATV. The deal, worth $2.2
billion, will give the investment
consortium rights to EMIs
publishing division.
The companys recording
division will be taken over
by Vivendis Universal Music
Group for $1.9 billion. EMI was
auctioned off by Citigroup and
includes popular artists such as
the Beatles, Coldplay, Katy Perry,Rihanna and Norah Jones.
Norah Jones
-
8/3/2019 Gulf Business December 2011
19/116
-
8/3/2019 Gulf Business December 2011
20/11620 /DECEMBER 2011
GCC TodAy
Ford doubles GCC salesFord saw a 55 per cent sales growth in the
GCC this year and has just opened a $53
million spare parts centre in Jebel Ali.
Its a great year for us, said Hussein
Murad, the director of sales at Ford Middle
East. We are making money, making profits
and selling a lot of cars.
All our new products Explorer, Taurusand Edge have experienced high demand;
almost five times the supply for these
products, he said.
The firm is putting
aside worries about
another recession
hitting the region
and hitting demand.
We cant control the economy, said Paul
Anderson, Ford Middle Easts director of
marketing. So we have to focus on the things
we can control and that is simply introducing
the best products that are available so that when
consumers do buy, Ford is their choice.
adac completes upgrade
PROJECT focus
The abu Dhb arports
Compny (aDaC)
hs completed the
refurbshment nd
upgrdng of Termnl 1 t
abu Dhb interntonl
arport. The project
ncluded n ncrese n the
number of check-n nd
mmgrton counters, n
ddton to the expnson
of the retl nd food nd
beverge spce.
The project ws crred
out over ten months s
prt of the progrmme
to expnd the rports
cpcty nd meet
ntcpted trffc growth.
The rport s presently
undergong mjor mult-
bllon dollr expnson
pln whch hs seen the
constructon of second
runwy s well s thrd
termnl buldng. as the
emrtes flg crrer Ethd
arwys develops, the
rport s eventully hopng
to be ble to hndle 20
mllon pssengers yer.
as prt of the
mprovements, there hs
been 40 per cent ncrese
n the number of counters
n the pssport control re,
whle the rports hotel nd
hosptlty lounges hve
been refurbshed.
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
++++++++++++++++++++++++
On the Radar
TAQA sees sharprise in Q3 net proft
Emke in Saudi expansion
UAE based oileld servicesprovider Topaz Energy and Marinehas established a $380 millionnancing deal with the StandardChartered Bank and the DVB Bank.The arrangement involves therms offshore support vesseldivision, Topaz Marine, and $125million of the money will be usedto fund ships under constructionor new vessels.
TAQA, the Abu Dhabi NationalEnergy Company, has said itsthird quarter net prot morethan doubled to Dhs537 millionfrom Dhs218 million during thesame period a year ago.
The biggest push came fromoil and gas revenues, which rose68 per cent when comparedto the third quarter of 2010, toreach Dhs2.74 billion.
The UAEs Emke Group is planning
to expand in the Saudi Arabian
retail sector through its chain
of Lulu Hypermarkets. Emke is
looking to open new stores inseveral locations in the kingdom
including Dammam, Jubail,
Riyadh, Makkah and Madinah.
Emke is already present in Oman,
Qatar, Kuwait and Bahrain.
Topaz raises $380m
-
8/3/2019 Gulf Business December 2011
21/116guLf BusinEss/ 21
GCC TodAy
UAE BoosT forrolls-royCE
GCC and the world
Dhs1 billion
STATS
ThE aMounT ThaT wiLL BEinvEsTED To RELoCaTE ThE 2013 DuBaiaiRshow To a nEw vEnuE aT DuBaiwoRLD CEnTRaL.
Mieat gup bu Uk hteCtl hll htel, med Mddle Et etr t rldde rtl tel, rced t mre Ld wet Ed Te sder d te st MrtLe htel r rd $300 mll.
Mr htel gr, te 50 er cet er tererte lde lte wlt street Ctl,ll cte t me te tel l-term b rt te del.
Te del ld be cmleted bere te ed te yer.
i know the difficulties, thenegatives, the positives, i will nothang on to power. whoever hangson to power i think is crazY.
Yemens Presidentali abDullah salehtold France24 television that he would leave office within 90 days of anagreement with the GCC.
SOAPBOX
Te om ol Cmy d st kre gs Epse ed reemet t te kre rce Cm t bld te rt e te Djer lt t ct $536 mll. Te clty texected t cme trem tl te ed 2014 dt ll e tt 800 mett.
om ol ld 30 er cet re te lt,le gs Eps te rem 70 er cet d te ertr.
om o, gs eps
Rll-Ryce Mtr Cr teed 70er cet cree uaE be tyer, d te rm CEo t te DbMtr s. Te remm uk crmerl 30 er cet rt cr tere t yer.
or bet mret te us,lled by C, te uk d te uaE.Te Mddle Et ctrbte betee 12er cet t 15 er cet t lbl Rll-Ryce le, d Trte Mller-t,
CEo, Rll-Ryce Mtr Cr. Db r bet mret te rld rctmble cr, erly ll te cr te uaE re tlr-mde.
Lt yer Rll-Ryce ld 2,711 crlblly, d t yer te CEo exectt ell 3,000 cr te bc eteed cmer cdece dcreed emer mret demd.
Betee 2010 d 2011 ele eremre cmrtble t te ecmy,
bt redct tre deelmet dclt e re t mme t lblecmc e-, d Mller-t.
Rll-Ryce rt te BMwr, l t M. Te germld rm recetly tedmree cl relt, clmte tret trd qrter ttry. BMw Q3 retx rtjmed 21 er cet t $2.26 bll,bet lyt etmte.
-
8/3/2019 Gulf Business December 2011
22/11622 /DECEMBER 2011
GCC TodAy
Saudi Arabia has signed a bilateral agreement with South
Korea to cooperate in the development of nuclear energy. The
agreement was signed in Seoul, according to a statement by the
King Abdullah City for Atomic and Renewable Energy.
The pact includes scientific, technological and economic
cooperation between the two nations, and will involve the
design, construction, operation, maintenance and development
of nuclear power plants in the kingdom.
Saudi Arabia signed similar agreements with France and
Argentina earlier this year, while the kingdom is also in talks
with Russia, China, the US, the UK and the Czech Republic
regarding further tie-ups.
Saudi signs nuclear pact
30seconds on the business of
LOGISTICS
i gtc bg bune
n te UAE?
Yes, the UAEs geographical
position enables it to
facilitate major movements
between the Eastern and
Western hemispheres.
And with high quality
infrastructure in place,
logistics is also a highly
competitive business here.
hw quck can ace be
cuee aun te w
fm te UAE?
The country is a hub for all the largest courier
companies in the world Fedex, DHL, TNT
and Aramex. All these companies have frequent
connections all over the world on a daily basis.
ha te a evement f te UAE avatn
ect bte te gtc nut?
Although the infrastructure is in place, I believe
that the UAE is yet to witness a positive impact
primarily due to the global economic climate. In
the long run, it should prove extremely beneficial.
regna, wc cunte ffe te bet
gwt tenta?
Saudi Arabia offers great growth potential thanks
to increasing domestic demand. And with Qatar
hosting the World Cup in 2022, demand for
logistics services in the country will be high.
de paze ffe an eca evce t t cutme?
Parzel offers the automated delivery point system,
through which our customers can make bookings
online and use our machines to drop off or pick up
their parcels.
hw e t wk?
Customers are required to register on the Parzel
website, and they are then assigned a unique
identification number. They can use this number to
book domestic and international shipments online.
Qte ae take n stahub
Qtr Telecm (Qtel) id tt
ai Mbile hldi, te ivetmet
rm it jitly w wit sire
Teclie Telemedi,
icreed it tke
i sire iterted
cmmuicti cmy
strhub by 7.45 er cet.
Te del bri ai Mbile
hldi tke i strhub
t 56.55 er cet d Qtel
effective tke t 14.14 er cet.
Te mve i imed ttki dvte f rwt
rtuitie
t bt it
reece i
utet
ai, ccrdi
t ner
Mrfi, Qtel
gru CEo.
interviewed BY jOnAThAn ShEIKh-mILLEr
oBAid Al QAhAsh
CEo, przel
King Abdullah City for Atomicand Renewable Energy
-
8/3/2019 Gulf Business December 2011
23/116
-
8/3/2019 Gulf Business December 2011
24/11624 /DECEMbEr 2011
OpiniOn
COMMENT
The Asian tiges offe a new way fowad fo the stife
idden Aa wold.
Matein Khalidis und manager in aroyal investment ofce and a writer
in fnance and geopolitics.
Lessons for ArAb economies
tThe developmenT model of TheAsiAn
tigers has created vibrant capitalist enclaves across the Pacific Basin.
The Asian economic miracles emerged from the traumas of war, foreign
invasion, revolution, ethnic slaughter and mass poverty. In Asia, historical
traumas deliver economic growth.
The Arab world experienced multiple traumas as the colonial era
ended. Israels creation ended in a military debacle in 1948 and the
expulsion of the Palestinian refugees. Syria experienced more than a
dozen coups dtat before the Assad regime consolidated power in a
nightmarish dictatorship that is now fighting for its survival. Egypt
reeled from the 1952 Free Officer coup, the Suez crisis, Nassers Soviet
alliance, the June 1967 disaster and the loss of the Sinai to the IDF, theassassination of Sadat, an Islamist uprising in Upper Egypt in the 1990s
and now the revolution in Tahrir Square.
Iraqs modern history is terrifying, from the murder of the Hashemite
King Faisal in 1958 to Saddams wars against Iran and Kuwait, the Baathist
genocide against the Kurds and repression against the Shia, the 2003
American invasion and the terrorist/death squad bloodbath of 2004-2006.
Kuwait was invaded by Iraq in 1990. Lebanon survived the 1975-90 civil
war. Jordan was almost split apart in Black September. Algeria lost a
million people in its anti-colonial war against France and another 200,000
in its civil war of the 1990s. Yemen had multiple civil wars even after
unification. Gaddafis Libya was just surreal.
Yet trauma did not produce economic miracles in the Arab world.
Why? The answer does not lie in autocracy alone since Taiwan, Thailand,South Korea and Indonesias economic miracles occurred under military
dictatorships. Why do Silicon Valleys supply chains for cellphones, laptops
and disk drives lie in Taipei, Bangkok, Penang and Pusan, not in Cairo,
The fall of Three auTocraTs in 2011
by people power uprisings armed
wiTh TwiTTer, facebook and al
Jazeera have changed The rules of
The game.
Amman, Damascus and Algiers? Why did the Arab
world not create an Infosys, a Samsung, a Singtel or
a Taiwan Semiconductor?
Trauma led to an obsessive focus on economic
development in Asia but not in the Arab world.
Why? Firstly, the petrodollar bonanzas since
the 1970s have created rentier economies and
entrenched dictators. I see Joseph Stieglitzs oil
curse in the rubble of Tripoli and Baghdad. Socialist
policies ruined economies, as in Baathist Syria or
the FLNs Algeria. The Arab-Israeli wars nurtured
mukhabarat states that were run by secret police
elites clueless about the capitalist ethos. An Arab
intellectual elite did not emerge to persuade the
pinnacles of power with a vision for reform, though
President Mubarak sought legitimacy in pro-market
reforms after the 2004 devaluation of the pound.
Huge state bureaucracies made privatisation
dangerous for Arab governments afraid of legions of
jobless youths. The education systems in the Arab
world were unable to create a Bangalore, let alone aSingapore. The Cold War subordinated economics to
geopolitics. Intra-Arab trade was miniscule. Political
instability led to the export of more than $1 trillion
worth of private Arab capital to the West.
The exceptions to the dismal economic tragedies
of Arab history were small Gulf microstates that
created trading, logistics or finance hubs, notably
Dubai, Qatar and Abu Dhabi. Bahrain replaced
Beirut as the offshore banking hub of the Middle
East in the 1970s but has now lost its allure after
the tragic events of 2011. Kuwait is paralysed due
to a continual power-struggle between the National
Assembly and the government.Saudi Arabia leveraged its crude oil windfall to
initiate a $130 billion development programme and
$60 billion worth of arms purchases. The prices of
crude oil and LNG are the most attractive measures
of growth, not entrepreneurship or high tech
innovation. The Arab world desperately needs to
rethink its development model, as the fall of three
autocrats in 2011 by people power uprisings armed
with Twitter, Facebook and Al Jazeera have changed
the rules of the game. History has finally gone fast
forward with a vengeance in the Arab world and the
stakes are nothing less than regime survival.
IllusTrATIon:TAr
Ak
PArEkh
-
8/3/2019 Gulf Business December 2011
25/116
To see a list of Visa Business
issuing banks please click on
www.visacemea.com/wv/get_card.jsp
Medical Assistance: Discount on full
Clinical Laboratory and Health Services.
Dining:Special discounts at
restaurants perfect for doing business.
Insurance: Discount on selected
insurance products.
Automotive:Discounts on car
rental and car servicing.
Travel:Hotel discounts and other
travel deals for when you travel or
host out-of-town guests.
Office & Technology:Discounts on
shipping, stationery, company cell
phones, and business electronics.
Effectively manage your day-to-day business
expenses with the Visa Business Card.
Exclusive savings for Visa Business Card Holders:
visit visacemea.com/wv/get_card.jsp
UAE:Star Metropolis Dynatrade Auto Service Al Reyami Interiors Arab Orient Insurance Company Coral Hotels & Resorts and Corp ExecutiveHotels Rotana Hotels and Resorts CompuMe and I2 Egypt: Coral Hotels & Resorts Al Khodeir Stationary Misr October Industrial Co. TNTKSA: Coral Hotels & Resorts GroundLink Kuwait: Safir International Hotel Qatar: Doha Golf Club DHL Express Coral Hotels & Resorts
Lebanon: FedEx Kinkos FedEx Express LebHotels.com Advanced Car Rental
-
8/3/2019 Gulf Business December 2011
26/11626 /DECEMBER 2011
OPINION
COMMENT
Following a year of global surprises, being a better leadershould be the priority in 2012
are you a people person?
its hard to believe that another year
is coming to a close. When I reflect over the year it has been exciting,
exhausting and definitely unexpected. Coming into 2011 few would have
predicted the defining events of the Arab spring, Japanese Tsunami and
the escalating debt crisis. The year has raised lots of questions for leaders.
At the end of each year, I pause and reflect on a particular dimension
from the previous 12 months. Last year, I pondered insights I gleaned from
CEOs. This year I am reflecting on the questions I was asked. Here are a
few of them:
Repeatedly throughout the year, senior leaders asked, How can weenhance our culture? Having rightfully recognised that they did not have
the culture that was going to enable their business to achieve its future
success, these leaders were ready to embark on creating the future culture.
Some organisations claimed they had no culture, but this is not true. Every
organisation has a culture even though it may not be clearly stated or
what they want. But they still have one.
The first step was to settle on the vision for the future. Then we worked
with these organisations to state what the shared values, attitudes and
practices will be. While this was a fun and exciting project for most
organisations, it will fall short of the desired outcome unless socialisation
happens, bringing the created culture to life through the employees. This
happens best through the highly specialised practice of identifying and
bringing to life the desired leader behaviour.Another question was, What do we need to do to grow greater than
the market growth rate? Numerous times I was asked this. The formula
is simple, but putting it into action is very challenging, as it requires a
Some organiSationS claimed theyhad no culture, but thiS iS not true.every organiSation haS a cultureeven though it may not be clearlyStated or what they want. but theyStill have one.
metamorphosis in leadership actions.
First, you need to understand where your
fail point is. Most businesses use their existing
operating box as the measure on how far to push
the boundaries. This orientation only allows for
incremental growth. If you think of growth as going
beyond the outline of the square then you are limiting
your opportunity based upon the past. To visualise
this, draw a square on a piece of paper representing
your current size. Now draw a dotted line around
the square that is at least two times the size of the
square. Lets assume this is your fail point. The area in
between the square and your fail point is your growth
zone. Instead of allowing your growth potential to be
defined by yesterday, allow it to go to the fail point.
Second, you need to understand the workforce
practice of creating competitiveness through surplus
value. This is a very simple concept but ignored daily
across the region. Draw an X and Y axis. The X axis
is workforce input (hours worked) and the Y axis issales output (units created, service, products, whatever
you sell). Currently there is equilibrium between the
two. So the errant thinking is in order to increase
the output, then you need to increase the input
accordingly. This thinking will keep the equilibrium
but to increase your competitiveness you need to move
to surplus value, which is the output growing at a
greater rate than the input.
A repeat question for 2011 was What does it
mean to lead a multi-national workforce? Leaders
need to be aware of and understand the following
realities: first-generation corporate societies, market
life stage starting points and adjustments, beingmulti-lingual in one language and managerial honour
and shame. These are the hallmarks for successfully
leading a multi-national workforce.
As I reflect back over the year there is one question
that I was not asked much about How do I become
a better people leader? Surprisingly, the basic of
people leadership is currently a differentiator across
the region. Leaders lead people, not processes or
strategies (you create those).
People leadership is the cornerstone of becoming
competitive through surplus value and accelerating
ahead of the market growth rate.IllustRatIon:taRak
PaREkh
Dr Tommy Weir, advisor onfast-growth and emerging
market leadership, andauthor of The CEO Shift
-
8/3/2019 Gulf Business December 2011
27/116
-
8/3/2019 Gulf Business December 2011
28/11628 /DECEMbEr 2011
OpiniOn
COMMENT
Einstein said the denition of insanity is doing the same thing
ove and ove again and expecting diffeent esults.
Tarek Miknas FP7 Group CEO
The ad indusTry musT change
weve been saying foryears that it couldnt go on like this. We knew it had to change. Weknew things werent being done right. It was our guilty little secret something that made us feel constant discomfort. And despite knowing
all of this, we just kept doing things the same old way. It was easy, it
didnt make waves, it was the way a lot of powerful people wanted it,
and lets face it we were making good money.
Am I talking about the Arab world in general? Or am I talking about
the Arab worlds advertising industry? Its not hard to tell. Im talking
about both.Theres one thing we all know by now, one thing we have to face up
to now: the old way of doing things is over. From that slap in the face in
Tunisia, through Tahrir Square, the Pearl Roundabout, and on to Algiers,
Sanaa, Jordan, Oman, Libya, Syria and elsewhere its all over. And
accordingly, for anyone who cant face up to this - its over too.
Clients, creatives, media planners, suppliers all of us are going to
have to do one thing. And thats listen. And once weve done this, were
going have to do another thing. We have to change. We have to hear
what were being told by our people, who are not, and never have been,
just consumers. They are our partners. They want it done right; they
expect accountability and honesty; they expect to be treated with respect;
they expect to be told the truth; they expect to be listened to; they expect
to be engaged and they always hope to be part of the solution.So the whole debate about digital as the way forward has to become
a thing of the past. After weve seen the life-altering videos shot on
mobile phones, the monumental influence of Facebook and Twitter, any
brand that hasnt got mobile and online at its heart from now on, is
Weve got to foster the belief
in partnership, mutual respect,
education, clear objectives and
fair reWards.
taking the same kind of risks as Mubarak.
That said, being present in the right channels
isnt the only challenge the quality of the work
shown across all media, including digital channels,
television, outdoor, in print and everywhere else,
just has to become better. We all have to do what
we should have been doing all along the good
stuff; the work thats honest; the work that people
relate to; the work thats a conversation and not an
order; the work that (oh yes) wins awards for the
right reasons.
Weve also got to do something a lot of us
havent yet considered. Weve got to treat one
another properly. Weve got to foster the belief
in partnership, mutual respect, education, clear
objectives and fair rewards.
Weve always known we had to change at
some point. What we know now is that wewont survive if we dont. On the inside, on the
outside, in our behaviour, in everything we do.
This includes our motivations lets stop looking
at short-term profit, and lets tap into the power
of creative communication and its ability to make
things better.
Todays conversations are about solutions.
Thats what our partners want and thats what our
consumers (also partners) want. The briefs we take
from clients should be how to help solve a business
issue and the result, in any form, be it a television
commercial, a microsite or a subtle product
placement, should be a good result.Nobody could have predicted the changes that
were to take place in our region and nobody did.
Its time we question our structures, our recruitment
policies, our integration models and most
importantly, build a sustainable ethos to keep the
faith inside and out.
We know it wont be easy. We accept that it may
be misunderstood and it may well give us problems
on the bottom line for a while.
But theres one thing thats crystal clear as we
look around our region today its time. And its
our time.
IllustratIon:CHarlIEb
analo
-
8/3/2019 Gulf Business December 2011
29/116
-
8/3/2019 Gulf Business December 2011
30/11630 /DECEMBER 2011
briefingREgional tREnDs, analysis anD viEws
The reTurn of remoTe bankers
cash drought
siig ivtt v
cd gll t d
t uae. bt will ty
wlc c?
Battered, bruised and gowg
wk, h Glf vm
kg co oy . i
h p fw moh h g of lm
hv mlpl, wh om ly
ggg h h ky fllg.
sock mk volm hv k o
ll-m low M&a l cvy
h lmo p. Mwhl,
coc mog ov h hlh
of h glol coomy, pcl h
clmo eozo.
iol vm k h
p h Glf oom y hg
h po-co po fg ow
g f. i h p fw moh,
C agcol, dch bk
Cgop hv ll loc h opplymk ck o Loo.
Php h mo hgh pofl w
dch bk Choph Lg, h
of qy cpl mk fo h Ml
e afc, who w mov ck o
Loo f h y d. C
gol h of q am Ky w
lo hom o h uK.
Oh, lk nom Golm
sch, hv c jo qy-l ol.
iol k gowg
cgly chy wh h olook fo
h go wllg o m
gfc gol m, cm
xp y. Yo gog o h
of c kg, wh k
flyg wh l mg, ally
Ho, h of h Ml e fcl
vc pcc P & P, d xcv ch fm. Mo
o 2008 wll gv wo
y mk co. Wh wv
ov h l y ho co
g m. Mo popl hv o
g o, l y w xmly
ffcl fo l ow hy o
hv choc, h .
sc kg wok h go
fo po l o 2007, wh
cm pp h k
o clv lohp wh locl
tExt By Ryan HaRRison
123R
F
-
8/3/2019 Gulf Business December 2011
31/116gUlF BUsinEss/ 31
BAnking briefing
There are banks in
The region ThaT are
suffering because
Their main revenue
sTream is equiTy
markeTs. The onlyway banks can meeT
Their financial
obligaTions is To
decrease cosTs. of
a banks profiT and
loss, 60 per cenT To
80 per cenT is made
up of salaries.
comp. sor xcuv
wr rfrrd d qu m
xpdd cpo of ur
of cvy d rvu. th fld
o mrl. Ovr rc yr h
vlu of ock rdd o Gulf our
h o-dvd. turovr h GCC
droppd o $296 llo l yr
comprd wh hgh 2006 of $1.6
rllo, ccordg o Mrkz, Kuw-
d vm k.
F rd y vm k
h Mddl e fll 42 pr c o $320
mllo h fr moh of h
yr from $551.1 mllo durg h
m prod 2010, ccordg o nw
York-d rrch frm Frm & Co.
tol f 2011 r 71 pr c lowr
h h fr moh of 2008,
wh f pkd $1.1 llo.
sh Phllp, hd of h Menaprcc hdhur so
Ch, d: trdg volum d
vm h Gulf r ll dow,
o h z of offc h rgo wll
corcg. th could lo rcoch
o ohr cor.
thr r k h rgo h
r uffrg cu hr m rvu
rm quy mrk. th oly
wy k c m hr fcl
olgo o dcr co. Of
k prof d lo, 60 pr c o
80 pr c md up of lr,Phllp ddd.
i y o g crrd wy hough,
h y. Cu ck r g w,
u hr hrg kg plc
vm kg, pclly wh
rk mgm, complc d
opro.
alo, hr uoy dmd for
ff prv kg, prv quy,
prol kg d ohr l
growh r.
sud ar g hug oom
prol fc, cr lo, crdcrd, d hom lo hk o
chg morgg lglo. thr
crg umr of prv quy
frm vg h prol fc
comp d h g momum
hy wll urlly crg
hdcou, d Phllp.
aly rgu h hr wr oo
my kr h rgo h hgh
of h oom d h curr rrco
lo oo ggrv. Hgh govrm
pdg d ol oupu lkly x
yr, whch od wll for coom h Mddl e d norh afrc.
th World bk rd 2011 growh
m for h rgo o 4.1 pr c
from 3.6 pr c spmr.
Ccl Hofr, co-mgg prr
of fcl hdhur tylor Hofr,
ddd: Horclly, k hv lwy
hrd vry quckly d l popl go vry
quckly. th hvour h mom
ohg w.h ddd.
Prur o mk vg hom
h lf rol plyr wh ll
ivetmet bk nomur recently
disbanded its Dubai-based equity
research team of several people as a
result of low trading volumes, although it
said some leading regional companies will
continue to be covered by London-based
analysts.
Frce Crdt arcoe closed its
M&A unit in Dubai this year, aiming to
manage deals from elsewhere. It came
after news that investment banking fees
in the Middle East declined 35 per cent
to $316.6 million in the third quarter
compared with the same period a year
earlier, data from Reuters found.
Zurch-bed EFg iterto said
it is closing its ofces in Dubai and Abu
Dhabi as it conducted a global review of
its business. HsBC, Europe bet bk, said it
will stop offering brokerage services to
retail investors in the UAE and focus on
institutional clients. The bank will also
close its consumer operations in Kuwait
as part of a strategic review.
Meanwhile, four investment bankers
from Crdt arcoe MENA operation
Kanhaiya Rathi, Kawtar Benkhraba,
Pravin Chelluri and Rami Barazi have
been hired by UBs in Dubai. They will be
working for the Swiss banks corporate
advisory group, reporting to AlbertMomdjian, according to reports on
Bloomberg.
Credt sue dissolved its Middle East
equities research team.
closing time
choc u o p ck from h rgo.
bu hrd o mg h locl
vor d u wll wlcom
ck h m k wh op rm
wh hy dcd o rur.
-
8/3/2019 Gulf Business December 2011
32/11632 /DECEMBER 2011
BRIEFING LiBYA/GCC
After GAddAfi
back to black
Lbyas supsngly spy un
o ol poucon coul spak mx
lngs n GCC couns.
TExT By Ryan HaRRison
As dramatic comebacks g,
Ly un l pun
n u l. th uny
h lf nly f n w
vl l fl n .
aly pung 600,000 l
y f l n l Nv, Ly n
h p f ng nh gn
fl hlp puh h l l
800,000 y h n f h y, ng
h hn f Ly Nnl ol
c., Nu bun.m nly, nlung
h innnl mny Fun, h
p h uny wul hv
l hn hlf h un. i n
iq lng uggl u pun
f uffng u g
l fl.
ol n h Gcc y hv fun
fful jn n h ln f
Ly un f. el h y
hy unllly n
pun pn f h l
f Lyn uppl. bu nvl
nw h hy wll f pu
u h upu, whh n l
vnu. rln v l wn h
Gcc n Ly hv n y f, u ul ng f Gulf a oPec
pu n d hng ul un
f. Ly nly oPec j
hul u pun f
unng h. Pun
xp gw full py y h
n f 2012 ly 2013.
if h hvu f Ly nw
gvnn nyhng g y, Gcc
l ffl wll hv fgh n h
hn h ng. i h n hwn
Gulf a ny pfnl n
wh h wng f l n.in, pn nlung Wn
ply Hllun, shlug n
b Hugh ng gul p
h uny n uu
n h n f unng full-
w. mnwhl, ng
Uk , pnv f Ly
Nnl tnnl cunl ll cy
xuv nl Lnn hl
u up bh n n h v
ppun n ff.
sn Wll, f gll l
iHs cera, : th nnl
gvnn wn v quly
pl g l up n
unnng. an uh n hnng
uh u f wh hy n
ng l pn. in h h ,
Ly lng pn h hv
xpn, plly v pn
h n wh hng n quly.
th f wll g n f. in h lng
h pnl nn
h n n f Gulf h w
uppv f h g h g
n pw.
H h Ly ngh wul
pl h Gulf vnu f l gvnn f
f nng h.
Wh Ly Nnl ol c.
bun n ply whn h
n Lnn l nh h h wul
fvu u fn f nw n,
ll unl. Unqunly,
lly u n h nnnl
uny, plly gvn h Ly
h 46 lln l f unpp l
v h lg n af n ghh
lg n h wl.
th gg hh f Gcc lpu lly f Ly
nnu nvln n wh
n n lwn n h euzn.
if gll gwh n hn ul pull
l p wn wh .
th n u h h nx fw
nh wll h Gcc fully yng
h euzn , plly hw wll
lv. i ul hv hug p
n vnu f l pu wll
hnng h hn fgh f
h wh Ly.
Libya has not shown GulfArabs preference withawarding oil contracts.
aFP
-
8/3/2019 Gulf Business December 2011
33/116
BLE
AT
UDUBAIMALL..
RD.COM
-
8/3/2019 Gulf Business December 2011
34/11634 /DECEMBER 2011
Dubais upbeat air show
Cleared for landing
L mn vn f d
ld ly k f d
fm Glf ln.
TExT By pETER shaw-sMiTh
70 Airbs A350s, 40 777-300 ERs an six
Boeing freighers on orer, for a oa of
239 wie-boy aircraf worh more han
$92 biion. However, Emiraes was coy
abo he iming an financing of he
Boeing 777 orers, which wi ikey be
sprea o over he nex ecae.Sheikh Ahme cae he 777 he
backbone of he Emiraes fee, b
of he oa goba A380 fee of 60
eivere an 243 on orer, Emiraes
has 16 in service an 74 on orer,
making i easiy he arges operaor
of he sperjmbo. I is no iffic o
envisage he hrea eve perceive by
he wors eaing Wesern airines
from he formiabe power Emiraes
has gaine by is access o wo of he
gobes mos poen aircraf.
WHIlE tHE SuBduEd gobamacro-economic oook is givingmany inernaiona bsinesses case
for concern, ceary no one has o
Emiraes or he powers ha be in dbai
abo he scae of he ownrn. A
press ime, orers oaing $63 biion
were annonce a dbai Air Show 2011,
nerining he exen of he regiona
aviaion boom, an making he even
a mch bigger sccess in financia an
orer-book erms han ha of 2009.
In dbai Air Show 2011s heaine,
HH Sheikh Ahme, chairman an chief
execive of Emiraes Airine, annonce
a day One orer for 50 Boeing 777-300
ERs worh a is price $18 biion, wih
opions on 20 more, worh $8 biion, for
a oa of $26 biion. this was he biggessinge orer in he hisory of he American
manfacrer an a boos afer is ravais
wih he 787 dreaminer.
As he arges operaor of he 777 in he
wor, Emiraes has paye an imporan
roe in eveopmen of he airpane an is
inp over he years has been invaabe in
he eveopmen of he 777 programme,
sai Jim Abagh, presien an CEO of
Boeing Commercia Airpanes.
In aiion o he 50 777-300 ERs
orere, Emiraes has 73 Airbs A380s,
Emirates announced $26 billion
worth of orders at the show
-
8/3/2019 Gulf Business December 2011
35/116GULF BUsiNEss/ 35
aviation BRIEFING
GE Aviaion won $14 biion of engine
orers a he show, some $6 biion of i
evoe o he sppy an mainenance,
repair an overha [MRO] of he GE90-
115B engines o be insae on he new
Emiraes 777-300 ER jes.
the oher eye-opening ea o emerge
from he air show invove he acics of
Qaar Airways chief, Akbar A Baker, in
facing own Airbs in negoiaions over
pricing for a is A320neo orer. In he
en, he chose 50 A320neos, wih five
A380s hrown in, a is prices of $6.4
biion, an was sai o have hmiiae
Airbs wih choice angage referringo eays in he A350 programme. In
aiion, Foria-base Spiri Airines
signe a ea for 45 A320neos an 30
A320s worh $6.8 biion.
the MRO marke in he region ooks
se o boom wih severa payers hoping
o cash in on he boom in regiona civi
aviaion. Emiraes Grop signe a ong-
erm eaership raining agreemen wih
Ros-Royce, aowing Emiraes op
uAE naiona managers o ake par in
Ros-Royces eaership an bsiness
managemen eveopmen programme inhe unie Kingom.
Ab dhabis Mbaaa is areay an
esabishe payer in aviaion hrogh
severa join venres, incing whoy-
owne Ab dhabi Aviaion technoogies
in he capia, an a 70 per cen sake
in Zrich-base SR technics. the
Avance Miiary Mainenance Repair
an Overha Cenre (AMMROC) is a
join venre for efence aircraf MRO
wih Sikorsky, o which lockhee Marin
enere in Janary.
Aviaion ease an finance company
AlAFCO of Kwai increase is orer
for A320neos o 50 from he 30 originay
signe a he Paris Air Show in smmer.
Airbs sai he vae of he ea a is
price was $4.6 biion. the company
aso ook o opions on 30 more. I aso
compee he ransfer of six dreaminers
o Oman Air.
On ay five, he Air Show was
innae by 700 Emirai sens from
uAE coeges an niversiies sporing
coorf scarves an regaia samping
he amosphere of he show in a Fres
day esigne o nerine he appea ofcareers in he aviaion insry.
Wih a 25-conry office nework
areay in exisence, Aircraf broker CB
Aviaion annonce he opening of a
new office in dbai, an name Saee
A Mansori as is vice presien for he
Mie Eas an Africa. We are focsing
effors on hese regions, which, accoring
o goba saisics, wi see growh raes in
oca orism an aviaion oching 20 per
cen of goba figres, A Mansori sai.
I is sai ha he vome of invesmen
in projecs in he Mie Eas wi excee$330 biion over he coming years.
dbai Airpor Expo is o be emoishe
o make way for anoher ermina a
dbai Inernaiona an he dbai Air
Show 2013 wi ake pace a dbai
Wor Cenra in Jebe Ai. Sheikh Ahme
confirme ha Mie Eas Bsiness
Aviaion 2012 wi aso ake pace a he
new Jebe Ai compex. Wih he wo
evens now aernaing each amn,
dbai has firmy esabishe isef as one
of he wors eaing marke paces for
he aviaion insry. Wih a forh majorermina faciiy ner consrcion a
dbai Inernaiona, he reocaion of he
air show ooks se o offer he governmen
of dbai he opion o bi a fifh a
dbai Inernaiona.
looking ahead, the contrast between
Chapter 11 bankrptcy rmors among
uS carriers and the inexorabe ascent of
the Gf carriers cod not be starker.
Congestion and red tape are not making ife
for the Eropean carriers any easier either,
and governments ooking to be on the take
from passenger activity in the form of tickettaxes and environmenta charges are ony
making the strgge more diffict.
this is nohing shor of a major
re-aignmen of marke shares an of
economics of boh scae an capaciy
se, since he new mega airpors in he
Gf area sffer no fying resricions,
aowing he bes iisaion of he newes
an mos echnoogicay-avance fees
fon anywhere in he wor, wroe
dr. Wofgang thome in a repor for EtN
pbishe as monh.
Akbar Al Baker, CEO of Qatar Airways
akbar al baker was said to have humiliated
airbus with his choice language as he attacked
the plane maker for delayed production.
-
8/3/2019 Gulf Business December 2011
36/116
C E N T R A L B A N K O F T H E U A
INTERNATIONAL BANA C C O U N T N U M B E
S a f e r a n d s e c u r e b a n k t r a n s f e
IBAN, the mandatory bank account number for payrolls/salaries,remittances and e-payments, is now effective.
The International Bank Account Number (IBAN) is a 23-digit alphanumeric sequence that has
become the official standard for money transfers (including salaries, international remittances
and e-payments) in the UAE. Your IBAN will be automatically generated and communicated to you
by your local bank.* If you have not received your IBAN by now, please contact your local bank.
Visit www.centralbank.ae
*If you have multiple bank accounts, you will receive multiple IBAN notifications.
SECURITYis what IBAN means
to my business
-
8/3/2019 Gulf Business December 2011
37/116GULF BUSINESS/ 37
finance BRIEFING
Sukuk on the riSet islamc fdg l as jyd a cd
ya as Glf fdg ds gw.
The Middle east sukuk mrkx 2011 n joy moo. Fun
r roug sukuk w r r-fo
yr, o g njoy bfor
fnnc cr.
t currn probm of non-imc
nb europn non v
conr ncy w mp
sukuk, or imc bon, pc on
bnc, rk-rng n -b
pproc. in, imc fnnc fn
n Wrn conom cou
rn ng or wo bou u of
convnon n. sukuk ur py
bonor w cfow gnr
by pcfc , wc r pu no
pc-purpo vc pr of
. i rucur wy o vo
imc probon on nr pymn.
W convnon bon, bun
wou py nr o bonor,
n vnuy rm bon.
t buy of sukuk y r
nk o rvnu proucng , n
or wor, r conomy, y
Yuuf d lornzo, n npnn
sr cor. if rvnu op,
r bckop.
Mor mporny, concp
bn sukuk y r no b
nrumn, bu ybr ook
n prform k bon wn y rcuy form of quy nvng.
tu, nvor buy r of bun
n ffcvy bcom ur,
govrnmn, prnr n bun
nrpr, .
Or y no mr ow you
pn , compn r on ook
o r imc bonor. db
b. an n Guf, propry vopr
Nk bn cu of o of
cpcm. i cou b rgu
Safe aS houSeS?
TExT By RyaN HaRRISoN
sr-compn b nrumn nGCC counr n or Mum rgon.
Nry $17 bon w r roug
sukuk n fr nn mon of 2011,
ccorng o su arb bnk NCB, n
mprv prur from roun $7.6
bon n 2009 n $6.1 bon n 2010.
in 2007 cmx of x-yr boom
for Guf sukuk unc
$18.7 bon.
som n imc fnnc wor y
bg pp of sukuk cncy
compny no ung b n
Over $5 billion in Gulf Sukuk willchange hands in 2012.
The concepT
behind Sukuk iS ThaT
They are noT debT
inSTrumenTS, buT
hybridS ThaT look
and perform like
bondS when They are
acTually a form of
equiTy inveSTing.
-
8/3/2019 Gulf Business December 2011
38/11638 /DECEMBER 2011
BRIEFINGGcc
Fw wou rgu ovrgn u
n counry w wor x rg
Mum popuon cou b cyc. Y
goby, My ccoun for
on r of sukuk mrk, by mo
m bou wo-r. in fr nn
mon of 2011 u $43.5 bon, or
69 pr cn of wor o. evn or
counr conrbu r. t x GCC u combn $16.1 bon or
25 pr cn of o. Nw nrn
yr ncu Ymn, irn n Jorn.
t GCC o wou v bn mor
bu xpr y w nr pry
by unr n mny pr of
MeNa rgon.
a 2012 rrv, Guf xpcng
prnkng of nw unc. Mo
urprng prp Brn, wc
xpc o $1 bon sukuk n
nrnon mrk, brv mov
conrng poc vonc connuo fr up n Kngom.
Mnw, dub imc morgg frm
tmw ugg w conr
ung mu-mon or sukuk, o
on of mr nnouncmn by
a h Bnk n spmbr.
if nx yr urn ou o b nyng
co o grow wn yr,
r r pny of gn for opmm.
t conr bwn eurozon b
wo n GCC imc bon mrk
cou g rpr.
sukuk r rky, up un pon
ur fu.
s, sukuk v prov wy
uccfu mong Guf nvor
crv n rnv o pcuv, b-
vrg Wrn bnkng mo.
Mny y imc fnnc
vc popury rwn from
m pp. Jw a, w frm Kng& spng mngng prnr for
M e offc, y: sukuk
f py n Guf bcu you on
n nvor. i opn o non-
imc nvor n sr compn
on quy.
t propc of ug conrucon
b for m nfrrucur projc
forc mny Guf o urn o sukuk.
Qr, wc fc prp mo
unng k, w ncrngy u
imc nrumn for projc fnnc.
som w b corpor sukuk, uby nvu compn, bu r
mp of govrnmn ookng o
u ovrgn sukuk.
Qr xpc o pn roun
$100 bon ovr nx fv yr o
prpr n vr nfrrucur
rqur o uppor ug nfux of
vor forc o n 2022 FiFa
Wor Cup. t conrucon cor n
su arb n Kuw r m
o pn $420 bon n $63 bon,
rpcvy, ovr nx r yr.
sukuk fvr pr byon
GCC, w rumour
govrnmn of egyp n lby w b
nx on o k pung. Bo
w u sukuk for r mv rbu.
in wk of rvouon
opp egyp ong-m r hon
Mubrk, counry fc rou
fnnc crunc n funng gp
o mor n $12 bon. i woub 80 mon Mum non fr
ovrgn sukuk, fr r c of
rrcon from Mubrk rgm
un imc fnnc nury.
Nl Mllr, global had of ilamc
fnanc at KPMG, ay: it a chanc
to njct nw captal nto a country that
nd nw captal. if egypt dd u
a sukuk t would play nto th ovrall
narratv of Mddl eat ilamc fnanc
trngthnng, vru th mght of
Malaya, h add.
Sukuk iS a Safe
play in The gulf
becauSe you donT
alienaTe inveSTorS.
iTS open To non-
iSlamic inveSTorS and
Shariah complianT
oneS equally.
sukuk pIpElINE 2012IssuER CouNtRy sIzE
aCWa Power Interntionl Sudi arbi $300 million
Etislt Sukuk Compny UaE $1 billion
Sudi Electricity Compny Sudi arbi $1 billion 1.5 billion
al Hill Bnk UaE $500 million - $1 billion
Dubi Bnk UaE $500 million (rumoured)
abu Dhbi Islmic Bnk UaE $544.5 million (rumoured)
abu Dhbi Commercil Bnk UaE $95 million (rumoured)
Skn Holistic Housing Solutions Bhrin $50 million (rumoured)
Dr al Dhbi Compny Kuwit $363.1 million (rumoured) Holding00 million struck since Ester.
-
8/3/2019 Gulf Business December 2011
39/116
-
8/3/2019 Gulf Business December 2011
40/116
-
8/3/2019 Gulf Business December 2011
41/11641 /DECEMBER 2011
BRIEFINGcommodities
Is t yw ta si sta
ati t?
TExT By yaDullah ITallah
The gold conundrum
uncertain times
owngae, a wosening Euozone
soveeign ebt cisis an the ackuste
efomance of many assets ove
investos to incease hoings in go inoe to otect thei weath.
Given gos oven isk mitigation
oeties, it is ikey that investos
wi continue to seek otection fom
economic uncetainty, which shows
no signs of abating. The ong-tem
funamentas fo go emain stong
with a ivese an gowing eman
base coue with constaine suy-
sie activity.
Ovea, go eman eache an a-
time high in vaue tems, ising $57.7
biion in the thi quate, with gobas an go exchange tae funs aso
osting obust gowth.
Goman Sachs, the goba investment
banking giant which usuay cas
coecty on commoities, has aise its
thee-month foecast by seven e cent
to $1,760 an ounce, six-month foecast
by 5.8 e cent to $1,830 an 12-month
foecast by 3.8 e cent to $1,930.
As we exect, go ices wi
continue to be iven in age measue
by the evoution of US ea inteest ates
GOld AppEArS TO have came
own afte a beathess un eaie
this yea that saw ices un u 22 e
cent an omise to coss the $2,000
an ounce baie fo the fist time. But
the ay stae the minute the ice
hit $1,900.16 in August. Since then,
the yeow meta has ithee an
emaine iectioness.
Oinion emains ivie on whee
the yeow meta is heae next: go
bugs say that with the wo (o at eastthe EU) going to he in a han basket
the egenay safe haven meta is just
taking a beathe befoe its next incine.
Go naysayes oint to the fact that
go has ost its steam, evience by the
fact the meta i not beak a ecos
afte Stana & poos owngae
US soveeign atings an the EU has
caeee ove the ege in the ast
few months. Instea, go ices have
emaine ange-boun aong the $1,700-
1,800 ban.
The imotant oint to note is that
go has gone nowhee an that offes
some cue as to whee its heae.
Fo one thing, ets ut things inesective: go has isen by 600 e
cent ove the ast ecae. The fact that
ices havent cashe an ae hoing
steay suggests that this ay has moe
bite than the go oubtes wou ike
to beieve.
Secon, thee is continue buying
of the yeow meta. lots of it. Centa
banks, often seen as key ives of go
ices, bought neay 150 tonnes in the
thi quate, the highest in fou ecaes,
accoing to the Wo Go Counci
(WGC). The banks have been net buyesof go since ast yea, iing into the
meta as a way to boost thei foeign
exchange eseves.
Unsuisingy investment eman
fo go was a key ive uing the thi
quate, sai Macus Gubb, managing
iecto, investment, at the WGC.
To be fai, the WGC is a obby gou
fo go ouces an it has a tenency
to tak u the meits of the yeow meta.
Sti, Gubb has a oint: Inceasing
eves of infation, the US ceit ating
123Rf
The price of gold has risenby 600 per cent over thelast decade.
-
8/3/2019 Gulf Business December 2011
42/116Gulf BuSINESS/ 42
commoditiesBRIEFING
an with ou US economic outlook
pointing fo continue low levels of
US eal ates in 2012, we continue to
ecommen long taing positions in
gol, the bank sai in a note to clients,
aing that the Euozone ebt cisiscoul futhe push gol upwas.
US Global Investos, a mutual fun
investment company, says negative
eal inteest ates in the US will popel
investos to seek gol fo its peceive
safe haven qualities.
Gol an the US geenback ae
negatively coelate an its pobably fai
to say that much of the commoity pice
spike is ue to the US Feeal reseve
pinting ollas with shee abanon.
So its no supise that gol pices
have been eine in as the US olla
ecently tune into a safe haven ue
to the EU cisis an, paaoxically, the
US owngae.
But Fench bank Socit Gnale
notes that the ollas safe haven tag has
limite appeal as the Feeal reseve
coul embak on a thi oun ofquantitative easing by the en of the yea
o ealy 2012.
The bank has cut its outlook fo gol,
but not by much.
Fo 2012, we now expect gol pices
to aveage $2,175 an ounce, vesus
$2,275 in the pevious foecast.
In the shot tem, analysts expect a
bust of cental bank buying an the
holiay season to boost gol pices.
Toonto domino Bank, Canaas
secon lagest financial institution, oes
not sit on the fence when it comes to thepospects of gol:
We expect pecious metals to be a
top pefome in 2012, with gol pices
heaing towas $2,100. Histoy shows
that easy monetay policy an economic/
financial stess ae suppotive fo gol
pices an this envionment is likely
to pesist thoughout the next yea, the
bank notes.
In aition, the much toute love of
the Inian an Chinese consume fo
gol shoul also ensue pices hol up.
But Inian jewelley eman was
own 26 pe cent uing the thi
quate, which sens a contaictoy
signal that consumes ae slowly being
pice out, leaving only speculatos
jumping on the gol banwagon. We can
be cetain that these investos will exit at
the fist sign of touble.While its tough ight now to fin
analysts who ae beaish on gol, investos
woul o well to move with caution.
Fist, we ae in a new ea of global
financial maket volatility, which makes
histoical technical chats eunant.
Makets have vacillate fom ecstatic
highs to epessing lows, an it is
possible that a few key ecisions in
Washington an Bussels coul issipate
the ak clous hoveing ove the global
economy, leaving gol with little cove.
Secon, if the global economycontinues to meane, investos will
be keen to take pofits fom thei gol
holings to compensate fo losses
elsewhee, keeping pices in check.
Thi, as gol has isen 600 pe
cent ove ten yeas, even a mi-size
coection may not be unwaante
an may not signal the complete
an utte ecline of the pecious metal.
But investos who move in at cuent
pices coul fin themselves staing
own a cliff. alifaabia.com
Gold buGs say thatwith the world(or at least the eu)GoinG to hell in ahand basket the
leGendary safehaven metal is justtakinG a breatherbefore its nextincline.
18 Nov 06
200
400
600
800
1000
1200
1400
1600
1800
2000
18 Nov 07 18 Nov 08 18 Nov 09 18 Nov 10 18 Nov 11
$
once
0
-
8/3/2019 Gulf Business December 2011
43/116
-
8/3/2019 Gulf Business December 2011
44/116
-
8/3/2019 Gulf Business December 2011
45/116GULF BUSINESS/ 45
RAKBRIEFING
Te nrtern Emirates eisty annal
bsiness cnerences are drawing in
new investrs.
TExT By PETEr Shaw-SmITh
RAK To ThE fuTuRE
investment
happeed verght. Whe a Emrates
plt, wh was pag fr a ew vlla at
RAK Prpertes, sad 2007 he lved
the dea f t havg t bther wth the
traffc ad fmes f Dba hs dal
rte a mre, cld sese a
qe sellg pt.Last ear, after teamg p wth
teratal evet prmt grp
Hrass, Shekh Sad pt the Aal
Glbal Arab Bsess Meetg Ras
Al Khamah.
Led b charma ad e-ma team,
Dr. Frak-Jrge Rchter, Hrass has
bee rgasg evets ard the
wrld fr sx ears ad ths ear pts
cfereces Valeca, Lxembrg ad
Zrch. Swtzerlad-based Hrass has
bee actve sce 2005.
WHEn you LiVE p the radfrm Wrld Cferece Cetral,
trg t attract peple t cme t
r w mre mdest smpsa s a
challege. Resrcefl Ras Al Khamah s
deterred.
Shekh Sad b Saqr Al Qasm,
Spreme Ccl Member ad Rler
f Ras Al Khamah, s thg f
t a ca hst. Sce takg ver
maagemet f the emrates affars
2003, he has presded ver a flwerg f
ts ecm, w $4.5 bll sze.
Dwtw RAK s t fr the fat-
hearted. Wth pr rads, ad lttle
mre tha a mall ad a qat ad
dated vers f the Hlt Htel, mst
peple ecter t l f the fac
campg the Mssadam Pesla r
a chat wth e f the strgglg cemetcmpa CEos.
Bt the Hamra Resrt ctes t
blssm, wth several ew ametes ad
the pctre pstcard vstas are almst
a match fr the best that Dba has t
ffer. The ew Palace Htel s the heght
f lxr, smpts twhses stretch
as far as the ee ca see, ad a ew
aqa-park ad apartmet develpmets
- cldg a ffshre slad - are gg
p alg the seashre.
The effrt t prmte RAK has t
RAK gateway project.
-
8/3/2019 Gulf Business December 2011
46/11646 /DECEmBEr 2011
BRIEFINGRAK
RAKs business model Relies heAvily
on inwARd investment: officiAls sAy
thAt 39 peR cent of investoRs ARe fRom
indiA, 19 peR cent fRom the middle eAst
excluding the gcc, And 15 peR cent fRom
the gcc itself.
i chose RAK as the emrate has great
potental, says Dr. Rchter. And we
sally chose locatons wth a resort
character. Ras Al Khamah s an deal
locaton to hold or Global Arab Bsness
Meetng. The Rler s a great spporter.
in trth, the qalty of the debate
at the conference dd not match that
sometmes encontered when the bg-
htters converge on Dba. The otcome
of the dscssons seemed to be that the
volatlty cased by the Arab Sprng was
no bad thng for resorcefl Mddle East-
based entrepreners. Bt as a platform
for nvestment n RAK, t was perfect.i have attended a nmber of Horass
meetngs, ncldng last years event n
RAK. They represent a great networkng
and learnng platform, says Wolfgang
Lehmacher, partner and managng
drector for Greater Chna and inda,
of CVA, a global strategy consltng
botqe. They are nternatonal
and local at the same tme, allowng
partcpants to realse vews beyond
the snapshot of the regonal staton
and ntentons.
At a lnch served n two packedadjonng restarants, a Greek PhD from
Cambrdge unversty set ot her desre
to commercalse her companys cancer
research - and how possbly to nvolve
RAK edcatonal nstttons. An indan
bsnessman earnestly entreated a Dba-
based Emrat over hs latest bsness
plan. A German iT exectve who dvdes
hs tme between Pars and Hong Kong
sad RAK, wth more nformaton, mght
be worth a second look. An indan
banker and fnd manager took Shekh
Sad to one sde to mpress on hm the
need to mprove local edcaton.
Recent regonal consoldaton has
corrected nsstanable [projects] and s
refocsng bsness on fndamentals,says Mr. Lehmacher. Ths makes for
sold perspectves n the regon. Ras al
Khamah offers exactly ths perspectve.
it s a dynamc emrate, ntendng to
nvest n knowledge management and
edcaton. RAK represents fertle grond
for many bsnesses.
RAKs economy has held ts own
drng the downtrn and new projects
and warehoses sprng p reglarly. its
bsness model reles heavly on nward
nvestment: offcals say that 39 per cent
of nvestors are from inda, 19 per cent
from the Mddle East excldng the GCC,
and 15 per cent from the GCC tself.
Dr. Khater Massaad, who blt the
largest ceramcs company n the world,
RAK Ceramcs, was on hand to explan
that the RAK investment Athorty, whch
he also heads, s home to over 9,800
companes, of whch 800 are ndstral.
Total ndstral nvestment n RAKiA to
date exceeds $3.5 bllon, he sad.
Alex Thomas, general manager,
marketng, at RAK investment Athorty,
ponted to ncreasng mgraton from
GCC companes as a key to RAKs recenteconomc sccess, althogh he cold
not comment on uAE companes movng
to the emrate. Costs are an mportant
factor, he sad.
RAK has proved remarkably adept at
attractng foregn nvestment and has
sezed every opportnty to sell ts brand
nternatonally. Why dd Dr. Rchter
choose RAK over Dba to host hs
event? Probably becase he realsed that,
ltmately, more new bsnesses wold
be ncbated as a reslt.
We are not a conference organser,says Dr. Rchter. Conference organsers
sally nvte a few star speakers. And
500 people st and applad. We want to
nvolve everybody n an actve daloge;
thats the reason we nclde so many
boardroom daloge panels. Partcpants
sally stay on drng the whole
meetng, [as opposed] to conferences
where speakers come and leave.
And as the new enterprses
mshroom n RAKs ndstral zone,
yo can see why.
Sheikh Saud bin Saqr Al Qasimi, Supreme CouncilMember and Ruler of Ras Al Khaimah.
-
8/3/2019 Gulf Business December 2011
47/116
-
8/3/2019 Gulf Business December 2011
48/11648 /DECEMBER 2011
Its been a spellbIndIng year. as the arab world fought
for freedom, the wIder world battled economIc woes and
an uncertaIn future of Its own. Gulf Businessasked the
regIons top busIness mInds what the future holds In 2012.
THE POWERcompiled BY alicia buller
illustrations BY rom miclat
-
8/3/2019 Gulf Business December 2011
49/116GULF BUSINESS/ 49
cover story
LETTERS
-
8/3/2019 Gulf Business December 2011
50/11650 /DECEMBER 2011
- th ogansan f h plumexng cuns (opec) was
fundd n Baghdad, iaq, n 1960
by v uns. cunly, has 12
mmb uns.
- opec uns suly abu a hd
f h wlds l.
- rnly, h gansan u s
glbal nm gwh fas f
2012 3.6 n fm 3.7 n.
fast facts
Abdalla Salem El-Badri,Secretary General, OPEC
our 2011 World Oil Outlook, which was
released in November, OPEC Member
Countries are expected to invest close to
$300 billion in 132 upstream investment
projects through 2015.
Moving forward, of course, remains
challenging. But such investments are,
as I have often said, the lifeblood of
the oil industry. Without investments
now in exploration, production and
expanded capacity future supplies
may not materialise and future needs
may not be met. And this is something
neither consumers nor oil producers
can afford.
Our Member Countries know this very
well. That is why OPEC consistently
expresses its interest in ensuring the
security of supply to all consumers
and, through its Member Countries,
maintains a commitment to investments
in new projects.
While the current global outlook
provides little security to producers and
investors, we must remember that future
oil supply depends on ongoing and timely
investments in capacity expansion. They
are central to ensuring future supply.
What motivates us is, of course, an
interest in satisfying the worlds energy
needs and striving towards stability in
the market. This is what our Member
Countries always try to keep in mind,
in line with our broader organisational
mission. It is only in this way that OPEC
can continue to be ready to act when
necessary despite what the global
outlook may show.
Giving an assessment of
the global oil outlook for
the short and medium-term
is notoriously challenging.
But offering views on the outlook for
investments in the industry, especially
given recent economic and financial
developments around the world, is even
more difficult.
Continuing unemployment and a
manufacturing slowdown in the US, as
well as a growing sovereign debt crisis
in Europe, have recently prompted OPEC
to revise down its economic growth
forecasts for 2011 and 2012 and,
consequently, oil demand. And despite
rapid growth in developing countries,
great uncertainties remain about a
sustained and broad-based recovery in
the major oil-consuming countries of
the world.
There is also the ongoing challenge
of not having a sufficiently stable crude
price environment. Our industrys growth
requires prices that are neither too high
nor too low and which are stable
enough to continue to attract investments.
We should not forget the experience of
2008 when extreme volatility resulted in
prices rising to nearly $150/b and then
falling to around $30/b by the end of the
year. This led to the postponement or
cancellation of more than 30 investment
projects across our Member Countries.
Despite the complex nature of the
economic challenges, our Member
Countries have an ongoing commitment
to capacity investments. According to
energy
-
8/3/2019 Gulf Business December 2011
51/116GULF BUSINESS/ 51
2011 has been quite an
eventful year for the global
economy, but the UAE has
weathered the turbulence
well and largely remained insulated from
the impact of the Eurozone crisis. The
UAE financial services industry, being
the barometer of the overall economic
climate of the country, reflected this
stability, which is evident from the
reasonably good performance posted by
UAE banks for the first nine months of
the year.
However, during 2011 there was a
visible shift in the thinking and strategy
of most UAE banks. Having overcome
the impact of the 2008 financial crisis,
banks in the UAE have shifted their
focus internally and have been working
to strengthen their systems, processes,
structure and risk management policies.
Banks are, in general, looking
internally for improvement opportunities.
Most of them are revisiting and
re-shaping their medium to long-term
strategies, revamping their distribution
strategies and identifying areas for future
growth. In short, they are spending time
and efforts to build strong fundamentals
to face the new economic reality.
The after effects of the economic
upheaval witnessed in 2011 in the
Western economies will impact the fast
growing economies of Asia, which are
expected to slow down in 2012. This
will affect the UAE and I expect flat
performance or marginal growth for the
UAE banking sector in 2012.
- mhrq h on ol bnk
n h uae (fr db il
Bnk), wh ol of dh70.9
bllon n n pro of dh756
llon n h r nn onh of
2011. th bnk l on h db
Fnnl mrk.
- mhrq nro h r atm
n r r o h uae.
- th bnk opn 54h brnh n
u sq, db, h yr, whh
nl mhrq Gol cnr.
fast facts
h.e. Abdul Aziz Al Ghurair,chairman, Mashreq
Customers will be more demanding
and banks will be under competitive
pressure. Margins will compress,
customers will demand flexibility,
and won't accept a one size fits all
approach. Banks will be expected to
come up with innovative solutions to
meet customer demands. To be able
to compete effectively in a market,
where growth is flat and customers are
demanding, banks will need reorganise
themselves in line with the needs of their
customers. Quality customer service will
be the major differentiating factor.
Since the financial crisis of 2008,
the global regulatory environment has
changed forever and this will ensure that
banks behave more responsibly. Risk
management will take precedence over
profitability and considerations. Liquidity
and capital management will be the first
priority for banks.
Finally, let me add that changes in
the banking regulations and fiscal
discipline, introduced during the last two
years, will make the UAE banking sector
stronger and will foster long-term growth
in the country.
The after effects ofthe economic upheaval
witnessed in 2011 willaffect the UAE, with flatperformance or marginalgrowth for the UAEbanking sector in 2012.
banking and finance
-
8/3/2019 Gulf Business December 2011
52/11652 /DECEMBER 2011
H. E. Mohamed Alabbar,chairman, Emaar Properties
real estate, like just about
everything else in life,
is cyclical. The eternal
challenge for homeowners,
investors and developers is figuring
out which way the cycle is moving, and
when it is most likely to shift direction.
Because in real estate, as in life, we all
want to be ahead of the curve.
We want to buy when the cycle is
down, and sell when its up. And, as
developers, we want to build for not
just current but also future demand.
That sounds awfully simple.
Unfortunately, real estate cycles are
complex things, influenced by countless
factors, both local and global, that make
them hard to predict.
So what do we do? Generally,
we study historical trends, current
leading indicators and ongoing price
fluctuations to assess, as best we can,
the direction of the cycle.
Thats one option. Another is to
focus less attention on the vagaries of
the market and, instead, zero in on
underlying demand, asking ourselves:What do people really need, right now
and in the future, that they cant get?
So lets step back for a moment and
look at our region with a birds eye view.
What do we see? A lot of young people,
including millions who need good jobs
and just as many who require quality
homes for themselves and their families.
Our region needs sustainable jobs and
affordable homes. Its hard to miss this
plain fact.
My belief in fundamentals, in the
importance of going back to basics,
is one of the reasons why Emaar,
which has traditionally focused on
affordable luxury developments,
recently launched a new subsidiary - Al
Dawahi Development, a next-generation
developer of value housing projects
across the Arab world.
At a time when the housing shortage
in some of the fastest growing cities in
the Middle East is estimated at over five
million units, Al Dawahi Development
will address the huge demand for
value housing. Creating a new category
of homes and communities that
provide value to young families, we
will create self-sufficient communities
that fulfill the aspirations of Arab youth
and their families.
A back of the envelope calculation
will show that if we can build
40,000 homes annually, it would take
at least 100 years to meet pent up
demand. Clearly there is room
here for not just Al Dawahi, but many
more developers to enter themarket of value housing. However, it
is important for developers to
implement the right business model
that works on volume and a good
supply chain that offers the best prices
for building materials.
Three years after the worlds financial
system nearly collapsed, we need to
go back to basics. After all, as any
builder knows, every project must start
with a strong foundation.
uae-fon popty titn e
hs bilt so of th conty's ost
stiking lnks, fo th wol'slgst tow, Bj Khlif, to th
wol's lgst ll, dbi mll.
rcing vns fo th
hospitlity n shopping lls
bsinsss of e ccont fo
nly 41 p cnt of totl vn in
th st nin onths of this y.
Fon in 1997, e is list on
th dbi Finncil mkt.
fast facts
real estate
-
8/3/2019 Gulf Business December 2011