gulf insider april 2013

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The Arabian Review Gulf Insider

Issue 99

The multi-award winning Arabian magazineGu

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Saudi Arabia Real Estate Review

DubaiWorld’s Most Expensive Car

InterviewEtihad CEO James Hogan

The Good News BluesExamining thE rolE of Bahrain’s mEdia

32. CarsWorld’s Most Expensive CarContents

more inside...

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Gulf InsiderApril 2013


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InterviewCEO, Etihad James Hogan

22

HospitalityThe JW Marriott Marquis, Dubai

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SportsBahrain’s Favourite Sports Bar

34

36FeatureGreen Lighting

BankingGCC Islamic Banking Assets

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46. ArtArt Dubai 2013

48. Tech PicksYour ultimate gadget guide

49. LifestyleLuxury fashion for the modern man

50. Last WordHumour at the Work Place

Cover Story

16

ContentsThe Good News Blues

Role of the media and the need to give candor its dues

P.O. Box 26810, Kingdom of Bahrain. Tel: +973 1782 2388, Fax: +973 1772 1722

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a division of CG Arabia WLL. No part of this publication may be reproduced in any manner without the written permission

of the publisher. All Rights Reserved. Views expressed in this magazine are not necessarily those of the publisher.

Printed at Awal Press, Kingdom of Bahrain.

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Gulf InsiderPublishers

Nicholas & Rebecca Cooksey

Editor in Chief Nicholas Cooksey

Assistant Editor Melissa Nazareth

Layout Designs Dhanraj S

Admin & Finance Nikesh Pola

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Comments...

“The world is a book and those who do not travel read only one page.” - Augustine of Hippo



Issue 99

The multi-award winning Arabian magazine

Gulf

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DubaiWorld’s most expensive car

InterviewEtihad CEO James Hogan

International Luxury Real Estate Review 20

Art Dubai

46

The Good News BluesEXAMINING THE ROLE OF BAHRAIN’S MEDIA

Farewell Hugo Chavez Last month, Hugo Chavez, one of the most iconic presidents in the world, died at the age of 58. While he was alive, Chavez was a highly controversial figure, calling George W. Bush a drunkard and a “psychologically sick man” and Tony Blair an “imperialist pawn who attempts to curry favor with Danger Bush-Hitler.”

Like him or hate him, Chavez definitely had a huge following in Venezuela as well as the entirety of Latin America. His anti-American and socialistic rhetoric made him an ally of Fidel Castro in Cuba and Ahmadinejad in Iran, and an enemy of the USA and its allies.

But with him no longer in the picture, things will change, and cheap Venezuelan oil will be able to flow into the markets, right?

Wrong.

Whoever succeeds Hugo Chavez will be trapped between a rock and a hard place. Venezuela currently has some of the cheapest gasoline in the world; it’s costing an average of $1 to fill up one’s tank. These low prices are made possible by the enormous amount of fuel subsidies - estimated to be 4.5% of their GDP (for reference, the US spends 4.5% of the GDP on its military). Any attempts to remove these subsidies will be met with enormous resistance from the population, which has long viewed cheap gas as a birthright.

To make things worse, the production of oil from Venezuela has been steadily decreasing due to the lack of reinvesting back into the oil patch and lack of upgrading the energy infrastructure. Instead of investing in the oil sector, Chavez has been spending most of the money on social programs. This decrease in supply combined with increased demand for oil from a growing population means there is much less oil available for exports.

In fact, since Chavez took power in 1999, Venezuela’s oil exports have been cut by half. Chavez leaves his successor, and Venezuela, in a difficult position.

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6 Gulf Insider April 2013

Inbox Readers’ Letter



Issue 97


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Bahrain | Dubai Market View

BahrainNew Labour Law

hits Private Sector

‘Arab Spring’Exploited and Misused

Christine LagardeInterview with IMF Managing Director

Bentley GT Speed 42

Bahrain Tops in Economic Freedom 30



Issue 96


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Reef Arabia Rehabilitating the Gulf’s Marine Environment



Issue 98


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Bahrain Pain or Gain?

Middle EastThe Top Six Brands

BahrainReal Estate Review

Interview - HE Reem Al Hashimy, UAE’s Minister of State 21

Volkswagen Ice Drive - Arvidsjaur, Sweden 44

Interview with Mr Nezar Banabeela, Chief Wholesale & Enterprise Officer, VIVA Bahrain.

VIVA CELEBRATES 3rd Year AnniversaryENTERPRISE MOVES TO SECOND YEAR OF OPERATIONS...

Send your views to [email protected]

Would you like to be a PUBLISHED Photographer? If your photos of Bahrain and the region are good enough, they could be published in Gulf Insider/Areej/Bahrain Confidential magazines. Each month we publish the most impressive images we receive and give full credit to the photographer.

Images must be at least 1mb and can be e-mailed to [email protected] with the subject ‘PHOTO’.

Unique Car-storiesI want to congratulate Gulf Insider for running some of the most interesting car-stories that I’ve ever read. The cars that you pick may be the same ones that most other publications do but the angle that you give your stories or reviews is brilliant. I’m writing this letter after reading the Volkswagen Golf 4Motion story that appeared in your last month’s issue. The write-up transported me to the Lapland! I’m impressed by the car as much as I am by the story. What a powerful machine – over 100kph across snow covered landscape! I’ll take the writer’s advice and make my own trip soon.

Car Enthusiast

Power of the SubconsciousMike Brooks spoke about the Law of Attraction in your last issue. There has been so much hype surrounding this concept since forever! What disturbs me is that most people, at least the one’s I’ve spoken to regarding this are fascinated by the law and think it is rocket science. I look at it as a very logical idea – you think what you become! Changing the dialogue we have with ourselves is necessary to change life-situations which in turn are based on our actions. Another thing I’d like to add here is that only picturising your goal in your mind won’t get you the desired results. You need to work towards it as well!

Salman

Value your Privileges!I read the article ‘Bahrain; Pain or Gain?’ and I couldn’t agree more with the author when he says that the government has provided citizens with every possible support that is needed to live a good life. I find it so difficult to understand why some citizens don’t respect and value the privileges they have. No matter how poor a Bahraini house-hold is, the government ensures that their basic needs are met. As citizens we have a responsibility too; we need to work towards a better future and not depend on the government for everything! I urge the citizens of this beautiful country to use their time to create value for themselves and for Bahrain instead of wasting it on vain activities that disrupt peace.

Reader

All Set for F1 2013I’m a huge racing fan and I just can’t wait for the race weekend, next month! The problem though is the tickets. I’m still in college and buying an F1 ticket burns a hole in my pocket (rather my father’s pocket). I wanted to suggest media publications such as yours to run contests with the tickets as the prize. Yes, I know that’s not a sure shot way of winning; it’s all luck, but then at least there is a probability that I may get lucky. I urge you to please consider this, at least for the coming years if not this year.

Kareem

7Gulf Insider April 2013

Feature Readers’ Letter Inbox

The allegiance of the Security Forces

There were some astute observations in the recent Gulf Insider piece by Nicholas Corfe, Bahrain Pain or Gain and the need for the National Dialogue process to ‘grow’ a measure of confidence between the supporters of both the pro-Government and opposition positions. There is a widespread perception, allegedly supported by the demographics, that the number of Shia in the ‘national security apparatus’ remains unrepresentatively small, particularly in the higher echelons of command.

For many Shia job-seekers, it is a running sore is that the vast majority of the police and security forces at the ‘boots on the ground level’ it is largely made up of ‘Sunni foreigners’ or ‘naturalized Bahrainis,’ people from Pakistan, Jordan and other Islamic countries. It fosters the belief that in the largely Sunni government service, large numbers of Shia ‘foot-soldiers’ could well be seen as a threat to Sunni safety and security.

The Shia allegedly feel that slight sharply, particularly when the police do not live among them, often speak little Arabic, and are frequently labeled as the ‘instruments of oppression.’ While most countries trust their security services not to ‘fire on their own people’ during national turmoil, many Shia are skeptical that applies in Bahrain where they are supposedly associated with acts of tyre-burning and violence. Consequently they simply lack confidence in the police. It also possibly helps explain why Shia youths often viciously attack the police, something that they might be less inclined to do if they were Bahraini, and and moreover, fellow Shia as well.

The greater recruitment of Shia policemen would, I believe, send a strong signal that Sunni Bahrainis, and the Government, are prepared to show a measure of confidence in the Shia to promote the national ethos and security rather than respond to crises along purely secular lines.

Rory TrembathBahrain

Roundabout Re-opening: Good Move?I welcomed Nicholas Corfe’s call for ‘bold

ventures’ and the possibility of building on genuine goodwill (Bahrain: Pain or Gain? Gulf Insider, March) to build the necessary mutual confidence for Bahrain to move forward.

I feel that the re-opening of the highly symbolic Pearl Roundabout, now the Al Farook Junction, the scene of the 2011 disturbances, would be such a measure. The area is at the junction of major road arteries which were closed two years ago as a result of concerns that opposition supporters might flock there and block it yet again. As a result, traffic congestion around Manama has increased enormously and is an irritant to all people now jammed on other arterial roads and largely prevented from gaining easy access to/from the south of the city.

Every day that the junction remains closed to the public, it is a signal that the authorities have no confidence in regulating such a major through-point. The enforcement of unimpeded public access for all, is a question of law and order. It is an issue commonly dealt with by many cities around the world when people protest in public domains, so why should Bahrain not be able to cope as well?

Presumably the authorities have learned a great deal about good and proper policing and crowd control over the last two years. It really is time to ‘suck it and see,’ to open the junction but deal firmly, openly and legally, with any attempts to breach the law. Sure, there may well be activities by hard-liners but the State should be equipped to deal properly with any such incidents. If the re-opening is done in conjunction with accompanying political reforms, the base of support for demonstrations will surely dry up to manageable proportions. It would send a very positive signal to locals as well as the outside world, the Government is in control.

A leap of faith is not always a jump into the dark. Yes, while there is an element of calculated risk in implementing confidence building measures, isn’t that a risk that good governments are capable of managing?

Carson Benning, Bahrain

FACTA concernsThe Foreign Account Tax Compliance Act (FATCA) will require every financial institution in

the entire world to report all their American clients’ financial activities to IRS.If any financial institution fails to comply, they will effectively be cut out of the US

financial system through a 30% withholding charge on every financial transaction of US origin.

Despite the massive compliance costs and issues of breaking local laws, most foreign financial firms and countries have little recourse to resist FATCA.

However, it would seem doubtful that the US would hit China with the 30% withholding charge for non-compliance due to a number of factors. With China holding roughly $1.2 trillion dollars in Treasuries, it’s not as if it doesn’t have any leverage of its own over the US government.

Likewise, the Russian government has recently come out strongly against FATCA saying that it would be illegal in the country as it would go against Russian and international laws.

It is also unlikely that the US government will hit Russia with the withholding charge unless it completely wants to scuttle their touted “reset” in relations. There also are many very real ways that Putin could find to retaliate.

This brings us to what is now a standoff between Russia and China and the US.It appears the US will have to either make serious concessions to win them over, or

back down. Backing down would create two massive gaping holes in global compliance, give other countries courage to resist, and could render the whole FATCA project ineffective.

Nick G.Gulf Insider will be publishing an article

on FACTA next issue.


Gulf Round-upBahrain

BBK’s CSR InitiativeAs part of its initiative for a better community, Mr Abdulkarim Bucheery, Chief

Executive and Mr Reyadh Sater General Manager- Shared Services Group of BBK handed over a sum of BD 47,000 to representatives of various societies in Bahrain including Cerebral Palsy Friendship Society, Bahraini Association for Intellectual Disability and Autism, Batelco Care Centre for Family Violence Cases, Bahrain Association for Parents and Friends of the Disabled, Bahrain Parents Care Home and The Bahrain Historical & Archaeological Society. Over the years, BBK has supported various clubs, charity funds and social groups in the kingdom.

Ferrari’s AccoladeMs Meher Parakh, Marketing

Manager Ferrari has won the prestigious Marketing Manager of the Year award for the Middle East, Africa and India Region (MEA), for achievement of key marketing objectives, compliance and personal dedication to the brand. The award was presented to her at the Annual Ferrari MEA Importer’s Meeting held in Dubai, recently.

Ms Meher Parekh with Mr Marco Sambaldi, Regional Marketing Manger Ferrari, MEA

Citibank Cash Back Campaign

Citibank Bahrain announced the launch of its Cash Back Campaign for their credit card members. This is a unique and innovative balance transfer promotion which assists customers to pay off their other card balances and book them with a Citibank Credit Card at a much lower interest rate.

Customers can now save thanks to low interest rates and also enjoy cash back of up to 20% over installments of up to 36 months. As part of the campaign, customers would be rewarded with up to 20% cash back on transferring their other credit card balances to a Citibank Credit Card.

To apply SMS ‘BTF’ to +973 3917 9401, or call on +973 1758 2484

Qatar Finds First Natural Gas Deposit in 42 Years

Qatar found a deposit with 2.5 trillion cubic feet of the fuel, its first discovery since uncovering the world’s biggest gas field 42 years ago.

State-run Qatar Petroleum, Wintershall AG and Mitsui & Co (8031) plan to develop the reservoir in a 544 square-kilometer (338 square-mile) area called block 4N. Qatar’s North Field, shared with neighboring Iran, was discovered in 1971 and provides the emirate with 900 trillion cubic feet in gas reserves.

“We will start production, God willing, in the next few years” from Block 4N, Mohammed Saleh Al Sada, Qatar’s energy minister, told reporters. “We have already started planning and looking at different engineering options.”- BLOOMBERG


Business News

Dubai to receive first tram by December 2013

The first of eight tram trains will arrive in Dubai on December 11 from a manufacturing facility in France. The 14.6-kilometre tram way along Al Sufouh Road.

Roughly a quarter of tram stations are complete, about one-third of the rail tracks are completed and foundation works in the tram depot have exceeded 90 percent completion.

Al Sufouh Tram will also be linked with the Monorail of The Palm Jumeirah at the entrance of the Palm from Al Sufouh Road to facilitate passenger movement between districts served by both modes.- BIG PROJECT

Bahrain Air CEO breaks silence over airline closure

Bahrain Air CEO Richard Nuttall has broken his silence over the airline’s closure, stating “it was always going to be difficult to be truly profitable”.

Stakeholders of the carrier announced their decision to suspend operations last month, confirming that Bahrain Air would be filing for voluntary liquidation.

An official statement was posted on the Bahrain Air website, which blamed the decision on a number of different challenges, including the suspension of flights to numerous destinations in the midst of Bahrain’s 2011 State of National Emergency.

The suspension was ordered by Bahrain’s government, but an official claim for compensation was denied, according to the statement. In addition, Bahrain Air declared a stalemate in negotiations with the country’s Minister of Transportation (who is also an active board member of Gulf Air).

“We had a good operation and were locally very much airline of choice for a number of destinations. It is widely recognised that a combination of the Arab spring and the political decision to protect Gulf Air put us in an impossible situation,” Bahrain Air CEO Richard Nuttall explained during an exclusive interview with TheAviationWriter.com.

“In a part of the world where almost every other airline is subsidized, and flying from a small Kingdom which is currently going through its own issues, it was always going to be difficult to be truly profitable. However, as a new airline, with a low cost seat configuration, Bahrain Air was always going to be much more efficient than Gulf Air on many Indian subcontinent routes and to seasonal leisure markets,” he added.

“As such, Bahrain Air could certainly have played a role connecting the Kingdom to select destinations at a much lower cost than Gulf Air.” – ARABIAN TRAVEL NEWS

KSA finds 15,000 expat engineers with fake degrees

The Saudi Council of Engineers has found that more than 15,000 expatriates working in the Kingdom in the engineering field are actually holding fake certificates, reported the Saudi Gazette.

Within the public sector as many as 850 fake certificates have also been found, and internet users have lashed out at the council for reducing the issue of fake certificates to mere statistics.

The Saudi Commission for Health Specialties also discovered 1,047 fake degrees in the private health sector and 489 fake certificates in the public health sector.

Anonymous people have since begun posting the names of those working in consultancy jobs and even Shoura Council members on the Internet, accusing them of holding fake degree certificates.

Daily newspaper Okaz has called for the real culprits to be revealed, saying: “We do not want to see a Saudi citizen going to an engineer who is holding a fake certificate to build a house for him and then the house collapsing.” – CONSTRUCTION WEEK

Tourism to contribute 17.4% to Bahrain GDP by 2021

Bahrain’s travel and tourism sector is on track to contribute 17.4% to GDP by 2021, according to the World Travel and Tourism Council (WTTC).

The country’s proximity to Saudi Arabia along with multi-billion dollar infrastructure plans including a 40-kilometre causeway link to Qatar, expansion of the international airport in 2015 and the upcoming opening of luxury and midscale hotels will all contribute towards a 4.5% rise in GDP from BHD 1.5 billion (US $3.97 billion) or 16.5% of GDP in 2011, to BHD 2.3 Billion ($6.16 billion) or 17.4% of GDP by 2021.


Qatar 2022 World Cup spending to hit $115bn

Qatar’s spending on the 2022 World Cup will go up to $115bn between now and 2022, according to a new study by Standard Chartered.

The study says the spending will need to increase during 2013 following lower expenditure than expected in 2012, and added that many of the country’s infrastructure projects should begin later this year.

The government has already put out to tender a number of roads and sewerage development projects as part of a $20bn programme for the next five year.

The bank’s quarterly MENA report said: “In Q1-2013 we have seen positive signs related to Qatar’s spending commitments for FIFA 2022.

“Between now and 2022 we expect almost $115bn of government expenditure on infrastructure projects and FIFA 2022.

The report also highlighted that Qatar would face numerous challenges in the lead-up to the World Cup, including sourcing significant amount of goods – primarily building materials – and construction equipment to support the building boom.

“We expect the prices of building materials and certain raw materials to begin to rise, and domestic transport and logistics costs are also likely to feel the pressure,” it said.

The country requires twelve stadiums, 90,000 hotel rooms, a metro system, and a national rail network.– CONSTRUCTION WEEK

Saudi flight delayed over stewardess’ lack of guardian

A Saudi Arabia Airlines flight from Jeddah to the eastern city of Dammam was delayed over a passenger’s demand that a stewardess be removed from the aircraft because she wasn’t accompanied by a male guardian, Okaz newspaper reported.

Flight 1108 was delayed when a stewardess began to read out and demonstrate flight safety procedures was interrupted by a passenger who asked her “why are you on the plane without a guardian?” the newspaper reported.

The passenger then proceeded to demand the plane not take off until all women unaccompanied by male guardians be removed from the aircraft.

The captain called security who then forcefully removed the objecting passenger and his son and started an investigation, according to the newspaper. The incident caused the flight to be delayed two hours.

Every woman in Saudi Arabia must have a male guardian accompanying her when travelling, usually a husband or father, sometimes a son. Women in the kingdom need the consent of a male guardian to work, travel abroad, marry or to open a bank account.

King Abdullah of Saudi Arabia, who has tried to accelerate the pace of reform in the kingdom, announced in 2011 that women would be able to vote and run in municipal elections starting in 2015.

Last month, the monarch appointed 30 women to the 150-member Shoura Council which was previously an all male body that advises the government on legislation. – ARABIAN TRAVEL NEWS

Dubai expects 15 million tourists by 2015

Dubai Chamber of Commerce and Industry (DCCI) has said the number of tourists visiting the emirate is expected to reach 15 million by the year 2015, Khaleej Times has reported. This will be the result of combined efforts driving new growth through a number of initiatives, as the hotel rooms’ capacity of the emirate is likely to increase to more than 100,000 by 2015, said DCCI director general, Hamad Buamim. The number of guest nights recorded in the emirate last year was 37.4 million with a 14% growth rate, as the revenue of hotel and hotel apartments rose by 17.9% to Dhs18.82bn during the same period, he said.

Bahrain


Business News

The road-link project between Oman and Saudi Arabia, that will open up a direct trade route between the two countries, is expected to be completed by the end of 2013, reports Muscat Daily.

According to officials, the proposed road, which passes through the Empty Quarter, one of the biggest sand

deserts in the world, will facilitate trade between Saudi Arabia and Oman and also pave the way for the economic development of Dhahirah region. Currently, Oman and Saudi Arabia are connected only via UAE for trade.

Speaking to Muscat Daily on the sidelines of the Economic Development Conference for the Dhahirah region at Crowne Plaza Muscat, Khalil al Khonji, chairman of Oman Chamber of Commerce and Industry (OCCI), said that the road link was due to open in 2012 but has been delayed due to the nature of the soil.

The new road will enable direct trade between the two countries and avoid the need for transiting cargo through UAE, which results in additional delays and paperwork for truckers. – CONSTRUCTION WEEK

Oman-Saudi road link to be ready for end of 2013

Qatar plans to attract transit passengers

Qatar is considering a plan to allow some transit passengers passing through Doha International Airport to visit key tourist destinations in the country, the Peninsula has reported. “Any passenger travelling by Qatar Airways and has a transit of eight hours or less will enjoy a new product enabling them to visit tourist spots in Qatar and explore them,” said the chairman of the Qatar Tourism Authority (QTA), Issa Al Mohannadi. QTA is working with Qatar Airways to finalise the scheme, added Al Mohannadi.

Kuwait to build three new citiesKuwaiti housing minister has said the country plans spend billions of dollars

on the construction of some 174,000 houses by 2020, AFP has reported. “Currently, we have more than 100,000 applications for houses from citizens,” Salem al-Othaina told the parliament. “By 2020, we plan to build three new cities with a capacity of 108,000 units... In addition, we plan to create several new residential areas with around 66,000 units,” he said. One of the three cities is planned on the Saudi border, while the other two will be built close to the frontier with Iraq, Othaina said.

Rolls-Royce sales grew 64% in Saudi Arabia last year

Mohamed Yousuf Naghi Motors, the sole dealer of Rolls-Royce Motor Cars in Saudi Arabia, has reported a 64% year-on-year jump in 2012 sales, highlighting the increasing strength of the ultra-luxury car market in the kingdom, Saudi Gazette has reported. Contributing to the brand’s strong performance was the recently-launched Phantom Series II, the company said. The Phantom Series II family, including Phantom Saloon, Phantom Drophead Coupé and Phantom Coupé, went on sale in Saudi Arabia in August. – AME INFO

Qatar, Oman to offer joint tourist visas

Qatar and Oman have signed an agreement to issue a common tourist visa for citizens of 33 countries on arrival at Doha International Airport, the Peninsula has reported. Under the agreement, visa holders can travel from Qatar to Oman without taking a separate visa, provided that the traveller does not go to a third country during the visit. The visa is valid for one month and can be extended for another. The common tourist visa will be issued to citizens of Andorra, Austria, Britain, Canada, Finland, Germany, Hong Kong, Ireland, Japan, Luxembourg, Monaco, New Zealand, Portugal, Singapore, Spain, Switzerland, Vatican, Australia, Belgium, Brunei, Denmark, France, Greece, Iceland, Italy, Lichtenstein, Malaysia, Netherlands, Norway, San Marino, South Korea, Sweden and US. – AME INFO


15mn tourists predicted to visit Dubai in 2015Dubai has become one of the top 10 tourism destinations in the world and can

expect to attract more than 15 million tourists from around the globe by 2015, according to Genesis Consulting ME, a dubai based business planning and marketing services provider.

While Dubai is attracting demand from a wide range of segments including corporate and MICE travellers, it is the leisure market that remains the leading sector, contributing over 40% of total room occupancy in Dubai’s hotels, claims Genesis Consulting ME.

The company’s report goes on to claim that the emirate’s hotel industry recorded an occupancy rate of 80% in 2012, with an average daily rate of AED 1,030.54 (US $280.58) which was 0.9 percentage point and 8.4 per cent higher respectively than the same period during 2011. Moreover, reports from Ernst & Young and TRI Hospitality Consulting highlighted that Dubai hotels were steady for the first seven months of last year when compared with the same period in 2011 while hotels in Dubai recorded a 10.3 per cent increase in revenue.

According to a latest report released hospitality consultants STR Global, Dubai’s hotel room capacity will grow 28.6% in 2013 with 17,409 rooms currently in the pipeline. Additionally, Alpen Capital in its recent report on the region predicted that hotel room supply from 2012-2016 will increase by 5.3% annually in the entire United Arab Emirates (UAE) taking the number from the current 96,992 hotels to 125,383 in 2016.

In addition, medical tourism has also become a growing market in Dubai with health tourism in the UAE growing at 15 per cent annually and over 502,000 patients recorded in 2011 of which 15 per cent were medical tourists compared to 10 per cent of a total of 412,000 patients in 2010. It estimates that medical tourism in the Emirate will have generated AED 6.1 billion ($1.6 billion) by the end of 2012. – ARABIAN TRAVEL NEWS

Qatar to have 21 hotels to come up in 5 years

Qatari business and trade ministry has said the country has lined up a total of 21 new hotels for the next five years as part of efforts to meet FIFA’s projected capacity requirement of 60,000 rooms, the Peninsula has reported. Of the list of planned hotels scheduled to open by 2017, 11 are five-star properties and nine are four-stars, the ministry said. According to official figures, Qatar currently has a total of 77 hotels, of which 80-85% are 4- or 5-star, that have been planned for or currently under construction, which would add another 17,000 rooms to the current levels. – AME INFO

BUSINESS owners in Bahrain who rent space from one of the Kingdom’s five municipalities could soon see their rent bills halved.

According to Gulf Daily News, Bahrain’s parliament voted to introduce a 50% discount for businesspeople within government buildings in a bid to help firms that have struggled as a result of ongoing political unrest in the country.

The country’s public utilities and environment affairs committee’s chairman, Hassan Al Dossary said that many firms have been unable to pay rent to municipal leaders due to a dramatic fall-off in business.

“Many businesses have late payments overdue to the concerned municipality and are struggling to get a profit margin because of the unrest, its effects and the market’s instability.

“The halving of monthly rents is temporary - till the market regains its strength and is able to stand on its feet,” he added.

However, he also said that the municipal government would also make sure that all outstanding rents are eventually recovered, and that Bahrain’s cabinet would eventually decide when to re-introduce full rents. – CONSTRUCTION WEEK

Bahrain businesses offered rent reductions

Bahrain


Business News

Saudi nears two-day weekend for private sectorAuthorities in Saudi Arabia are moving closer to introducing a two-day

weekend for the private sector, which would bring the working week in line with the kingdom’s public sector employees.

According to English language Arab News, the kingdom’s legislative Shoura Council will imminently issue an amended labour law that will bring in a five-day working week for private sector staff.

“The Shoura is currently finalising amendments to 20 articles of the labour law to fix weekly working hours of employees in the private sector,” an anonymous source told the newspaper.

The move comes after authorities in the Gulf’s most populous country returned a study prepared by the council which requested the consultative council reduce private sector working hours from 48 to 40. Private sector employees in Saudi Arabia currently work a Saturday to Thursday week.

Arab News reported that the move to reduce working hours in the private sector was designed to tempt Saudi nationals away from public sector employment.

In November last year, the Ministry of Labour introduced a controversial new policy that would see companies that employ more foreign staff than nationals fined SAR2,400 (US$640) per overseas employer, per year. – CONSTRUCTION WEEK

Kuwait imposes travel ban on 90,000 peopleKuwaiti interior ministry has imposed a travel on 90,000 persons living

the Gulf country as of the past weekend, Al-Qabas Arabic daily has reported, citing security sources. The ban orders, which include 48,000 Kuwaitis and 42,000 nationals of 12 other countries, are based on court rulings, mainly due to unpaid dues, the sources said.

Service charge hikes for residents of Burj Khalifa

Service charges for residential and corporate units in Burj Khalifa, the world’s tallest tower, have been increased by 27 % and 37%, respectively, for 2013.

Owners of residential apartments will have to pay $20 per square foot compared to $15 per square foot in 2012. In 2011 and 2010, the charges were $15 and $14 per square foot, respectively. Corporate suites have seen the highest increase in the charges.

An apartment owner in Burj Khalifa confirmed he had received the invoice for the year, adding the increase was too steep.

“Last year, they kept the charges stable in 2012 compared to 2011, but this year they have increased it significantly. No reason has been given for the hike and they only said it has been approved by RERA,” he claimed.

In a statement to apartment owners, Emaar Properties, the developer, said: “After a thorough review of the current and projected costs, we would like to inform you that the 2013 community service fee for Burj Khalifa has been issued in accordance to rates approved by RERA.” - BIGPROJECT

“As always, payment may be made in four equal instalments using various payment methods at your disposal. To ensure the continuity of service to your community, we request you to kindly make your payments by the dates mentioned on your invoice,” it continued.- BIGPROJECT

Jeddah to move mountains to solve housing shortage

Jeddah Municipality is planning a move to level mountains near the city in order to create room for housing land.

An unnamed local government figure told Arab News that plots will be created from levelled land that will then become part of the government’s land grants for housing.

“The leveling project, which falls within the strategic plan for development of the coastal governorate, will cover areas currently outside the urban confines of the governorate,” he said.

“The plots will be allocated to citizens and, in the case of any encroachments, illegal settlers will be evicted and the structures they built will be razed,” the source added.

He said that the government was preparing to use helicopters to check proposed plots on hills and mountains in northern and eastern parts of Jeddah in a bid to evict illegal settlers, and added that plans were underfoot to extend mast transport systems being developed in the city to new areas. - BIGPROJECT


Top developer says rural migration behind KSA housing crisis

A major private sector developer in Jeddah has called on the Saudi government to work with developers to streamline several processes that cause delays in the construction of housing projects and make it difficult to resolve the housing crisis.

According to a report by Arab News, the Kingdom’s leading developers have backed changes to regulations and the mortgage law as they fear a negative impact on their business and financial capabilities.

“Among the limits and challenges facing Saudi developers, is for example the regulations concerning the Municipality’s issuance of licenses, which must have a shorter processing time from the current minimum of at least two years up to a maximum of four years,” said Riyad Ahmed Al Thaqafi, CEO of Ewaan, at an event in the Kingdom.

“In addition, the government should revise the mortgage law further, as we feel that the implementation of the current draft will have a negative effect on developers and financing companies,” he added.

He said that there was a need for the government to appoint an agency that would regulate land prices to stop price escalation and manipulation. Furthermore Al Thaqafi called on the government to change the community culture of a majority of the population’s belief that they need a 200 or more square metre home in order to own a home. - BIGPROJECT

34% of expats want to leave Saudi Arabia

About 34 percent of foreign workers in the Kingdom seek to return home due to several reasons including rising cost of living.

An HSBC survey has confirmed that most expats in Saudi Arabia find integration difficult and raising children expensive.

According to the survey, the cost of raising children in Saudi Arabia is high with 70 percent of parents noticing an increased cost.

“Moving from our home country is tough, and we had hard time getting things done in the beginning,” said Lina Abu-Auof, an Egyptian teacher who came to Jeddah 10 years ago.

Mohammed Irfan, an Indian IT expert working in Jeddah, said he moved to Saudi Arabia 20 years ago and expected to gain a higher salary.

He said that although he received decent pay, he still was unable to save money. “I found that as much as I earned here, I had to spend all that on children’s school and house rent.”

Samira Qabbani, a Syrian mother of five, said that raising children in Saudi Arabia is difficult. She also stated that raising boys is much more difficult in Saudi Arabia.

“The need to keep children indoors and away from strangers is a major challenge I faced while raising my children,” she said. “In Syria, I used to leave my children to play in the garden next to our home, socialize with their relatives, and even walk to school alone.” - ARAB NEWS

Male UAE nationals expect to earn Dhs27,000 per month

Male UAE nationals expect to earn Dhs27,000 a month after finishing their education and almost nine-out-of-ten would prefer to work in the government sector, according to the results of a survey.

Online recruitment firm GulfTalent.com released data from a study titled “Recruiting Top Emirati Graduates” which showed that a poll of nationals found that 86 per cent of male graduates were keen for government work.

Two-thirds, or 66 per cent, of female graduates also plan to seek employment in the public sector and women workers expect a salary of Dhs19,000 a month.

The survey also quizzed graduates on the firms they are setting their sights on - with Abu Dhabi investment giant Mubadala the most popular company.

The capital dominated the list of most desired employers, with Mubadala followed by Abu Dhabi National Oil Company (ADNOC), Masdar, the Emirates Nuclear Energy Corporation (ENEC) and Abu Dhabi Executive Council rounding out the to five.

UAE private sector firms were the preference of just 4 per cent of male graduates and 10 per cent of females. – 7 DAYS

Bahrain


Business News

Prince Alwaleed challenges Forbes over his billions

One of the world’s richest men is in dispute with Forbes, the publisher of an annual list of the world’s biggest billionaires, over exactly how rich he is.

Prince Alwaleed bin Talal, the Saudi investor whose interests range from the Hotel George V in Paris to a stake in Twitter, announced on Monday that he had “severed ties” with the Forbes billionaires list, accusing it of a “flawed” valuation method that displayed a bias against middle eastern investors.

Forbes, owned by Steve Forbes, ranks the prince as the world’s 26th richest individual, estimating in its 2013 list that his net worth had risen $2bn in the past year to $20bn.

The statement from Kingdom Holding Company, the diversified investment group in which the prince holds a 95 per cent stake, made no mention of the prince’s own estimate of his riches, but a spokesperson for Forbes said he had estimated his wealth at $29.6bn.

Kingdom said it would continue to work with the compilers of the Bloomberg Billionaires index, launched last year as a rival to Forbes’ long-established list, using the market data for which Bloomberg is best known.

By Bloomberg’s calculation, which Kingdom said the prince considered a more accurate measurement and which includes figures provided by Kingdom, his wealth stood at $28bn and he was ranked as the world’s 16th wealthiest person. – FINANCIAL TIMES

Saudi labor ministry plans to retire foreigners at 60The Ministry of Labor has drafted a new law recommending the termination of

the services of expatriates who turn 60.Expatriates over 60 who enjoy considerable experience in a field that is important

to the Kingdom will be exempt from the law, Al-Madinah newspaper reported.An informed source said the ministry and all concerned authorities including

relevant committees at the Council of Saudi Chambers of Commerce and Industry discussed all important aspects of the law before sending it to the higher authorities for approval.

Chairman of the human resources committee at the Jeddah Chamber of Commerce and Industry Dr. Samir Hassan said it is important new legislation is in place to facilitate the process of replacing expatriates who turn 60 with Saudi employees.

He said authorities should prevent any expatriates from circumventing the law by changing their date of birth in their passports. – THE SAUDI GAZETTE

Employers in UAE to be fined for failing to contribute to pension fund

The General Pension and Social Security Authority (GPSSA) is urging private sector employers to register their national employees within one month of hiring.

A GPSSA circular says: “GPSSA is issuing this notice to bring to the attention of all employees in the private sector that, under Federal Law No. 7 of 1999 (Pension Law), employers are required to register their UAE national employees within one month from their date of joining date, after which contributions must be deducted and paid to GPSSA.”

“Failure to register the employees and pay the contributions on the due dates renders the employers liable to fines as stipulated by the Pension Law,” the circular said.

UAE nationals are entitled to a pension after 20 years of work. In order to provide the pension, the GPSSA requires the employer and the employee to contribute monthly payments of 12.5 per cent and five per cent respectively of the employee’s salary.

While the majority of big companies have registered their employees, a small percentage of them and some medium and small fail have failed to do so and so they do not contribute to the pension fund, said a GPSSA official when contacted by this website.

“Medium and small companies are sometimes not aware of this requirement. The circular is aimed at informing employers of their duty and employees of their rights,” the official said.

Employers that fail to register will be fined 0.1 per cent of the salary for every missed month, starting from the second month of the employee joining the company. The employer and employee will also be required to pay the regular contributions for the missed months.


Bahrain The Good News Blues

Nicholas Cortes examines the role of the media and the need to give candor its dues.

THE GOOD NEWS BLUES

Now I am all for ‘optimism,’ seeing the glass half full of spring water rather than half empty. Provided of course that it really is spring water,

and that the bubbles are not mere fizz generated by a spoonful of Alka-Seltzer, which soon goes flat. In other words, it is important to temper optimism with realism and to see things as they really are, rather than as we may wish them to be. And while many news editors in the West discard or downplay good news stories in favour of ones that are “gory or war-ie,” on the basis that they sell newspapers and television coverage, in the Middle East there tends to more promotion of good news stories, going with the glowing headlines.

Here there is a focus on the praise rather than malaise. That may be admirable, but it can also be self- fooling in failing to grapple with the real issues. Like lauding government budget allocations to infrastructure development in big headlines, but then

subsequently finding out later that the money was not spent and the projects were either never started, or completed, and burying the story on Page Eight. Or month after month delivering largely meaningless statistics on traffic fines yet not seeing a commensurate decreasing trend in traffic offenses, or seeing improved traffic behavior. Something is not working! And “bad news” can only be ignored for so long!

Unfortunately in many countries there is a tendency to ignore constructive criticism or see it as somehow ‘unpatriotic.’ Just shrug shoulders and keep on keeping on, with the same failed or failing projects. There simply needs to be more robustness ‘in the system’ to encourage criticism, with the media being more focused on highlighting shortcomings and wrong-doings. Skeptics and questioners of policy and details make for a healthier society.

Many in Bahrain have been incensed

at the foreign media coverage of events in this country since the disturbances, tyre-burning, thuggery and vandalism began in 2011. The foreign media are labeled as biased because the opposition makes much of the running through their access to international outlets and the speedy manner in which they use the social media. They have claimed ‘the language of the disturbances’ so that the international media still claim opposition activists to be ‘pro-democracy’ or ‘peaceful demonstrators,’ despite enormous evidence to the contrary. They claim that “the Shia are 70% of the population,” without any creditable data to that effect, and of course there is the immediate corollary that as a result, the Shia are “oppressed by the Sunni minority.” Their claims about ‘continued torture’ and ‘government inflexibility,’ irrespective of veracity, still somehow find ‘credibility’ in international media circles. Even now!

But it is also important to look at


The Good News Blues Bahrain

Unfortunately in many countries there is a tendency to ignore constructive criticism or see it as somehow ‘unpatriotic.’ the role of the media and government agencies within Bahrain to see if all that could be done, is in fact being done. There are many who believe that the local media and authorities should be faster to respond to opposition claims and blatant fabrications, and simply work smarter. Criticism from international journalists that government phones went unanswered when they sought official views, that often spokesmen merely offered “no comment,” or that journalists were prevented from entering the country, are simply damning in the eyes of many in the international community.

Countering adverse comments is always an exacting and oft painstaking task and the Bahrain Minister for the Information Affairs Authority has rightly suggested that spokespeople should be accorded recognition for the extraordinary hours that they need to put into their jobs. The 24 hour news cycle has been with us for some time, and is not going away. Spokespeople are on call 24/7 and every time that a journalist calls, it affords them the opportunity to put the national view across, whether formally or on a background basis, but it should always be with candor and honesty. Cross journalists at one’s peril for most of them have an elephantine memory, and the metaphorical pen to maintain their enmity. That doesn’t mean cowering or not strongly disagreeing with their assembly of so-called facts, or falsely based assertions, but it does mean being well briefed, concessionary when required, yet resolute when defending a position. “No Comment” is not an option.

Many Western value systems are based on confrontational decision making rather than seeking consensus solutions as is more prevalent in the Middle East. And journalists can be rather insistent in ‘pushing a line.’ Nevertheless, there comes a time for spokes-people to say, “I have listened to what you have said, I have answered your questions, and I have outlined our position. I think that

we should move on.” Spokespeople for the White House and Downing Street do it all the time, they take on the media when their interpretation is perceived as wrong, so why not spokespeople in Bahrain?

There is too a tendency to mistake the role of Public Relations with the role of the media journalist and while there is a role for both in societies and organizations, they are distinctive differences. Journalists generally find ‘PR spin’ an anathema to their craft. When it was claimed that the relative of a Prime Minister was in fact a train robber, there was a subsequent admission that indeed, the fellow was a businessman whose interests were associated with the rail-roads! Clever, maybe, but spin nevertheless, and most journalists very quickly latch on to a bending of the truth, or giving a story ‘gloss.’

The past two years have of course, also seen a plethora of commentators seeking to ‘tell the truth’ about what has been happening in Bahrain. Some have gone down the ‘lowest common denominator route’ by highlighting hypocrisy or inconsistencies in the countries critical of Bahrain. It is a tactic that might give some delusionary comfort in that ‘I’ll tell on you’ manner which best remains in the domain of small children. There needs to be a concentration on what Bahrain is doing ‘right’ and how it is addressing the major issues which is much more constructive than mere name calling.

No, far better to methodically dissect criticism by highlighting falsehoods, not in sweeping statements, but by forensically refuting assertions, point by point. In time, foreign media outlets will come to give less credence to exaggerated or untrue opposition claims and statements and more credence to pro-Government views. But neither should there be an attempt to ‘gild the lily,’ something that even the ‘friends of Bahrain’ sometimes do, and often at a cost of the very credence that they are


Bahrain The Good News Blues

trying to enhance. Openness and candor should be the talisman for all media explanations.

The highly regarded scholar and Bahrain/Iran expert, Mitchell Belfer, last month published an interesting article entitled Two Bahrains: Of Yesterday and Tomorrow, in the glossy on-line publication, Marcopolis, run out of Paris, Washington, Brazil and Prague. Lots of good, sensible stuff and insights, but nevertheless, some eyebrow raising stuff as well!

There is, Belfer contends, no dividing line in Bahrain based on religion or sect, the only dividing line is “between those looking to the future and those whose eyes are transfixed to a mythical past.”

The trouble is that many (most?) people and commentators firmly believe that since the events of 2011, a divide along secular lines has occurred. While it may not be irreparable, for it was not so pronounced before 2011, it is increasingly seen as a factor which has become a reality. The Interior Minister spoke recently of his concerns about the “export of the Shia revolution” by Iran. He rhetorically asked, “Do we need to export a Sunni revolution in response?” “Of course not” he replied, but “belonging to a sect should not take priority over belonging to a nation.” The Minister wisely acknowledged the division, simply because ‘everyone knows there is one.’ Calling black to be white is never going to make it any less black!

There continues to be the international ‘language of secular division.” The allegedly “oppressed Shia” allegedly comprise 70% of the population; that some prominent Shia imams promote secular division and violent confrontation by mainly “Shia demonstrators;” that the Shia are under-represented in Government service and over-represented in unemployment statistics, and that the opposition Wefaq society “do not speak for all Shia.” Belfer is quite

correct that the issue is asymmetrical with most Bahrainis looking forward to their progressive society, with only a few people harking back to a ‘fundamentalist Islam,’ which they want to implement in the future. But that isn’t the same as saying that the events following the disturbances of 2011 have not created a widespread belief, both internally and externally, in a division along secular lines. The purpose of slogans like “Not Shia, Not Sunni, just Bahraini,” is to try and mend that schism which has brought division between Bahrainis.

Belfer also concludes, with a measure of bravura, that there are no war zones in Bahrain. While that may be strictly true in a non-guerrilla sense, tell that to business-people, retailers, restaurateurs, car washers etc, who have seen their businesses diminish or dry up because there are distinct no-go areas, especially at night. Tell that to house-holders who fear sporadic violence, whether through intimidation, retribution or retaliation. Look at how many houses there are in Shia villages with “For Rent/Sale” signs, because people have simply moved away as a result of the security threats.

Belfer asserts that it is a ‘handful of delinquents’ who are responsible for ‘political standoffishness,’ yet despite the best efforts of the police and security authorities, there has been little indication that their resources in terms of man-power and material is drying up. That is despite a significant number of the miscreants currently being in prison. That might even lead to some claims that the opposition is in fact growing and ‘winning’ new recruits. And there is the old adage in these types of struggles – the opposition do not need to win the struggle, they only need to not lose it!

Seldom a week passes without reports of road blockages, violence, increasing incidents of more lethal weaponry and the incidence of explosive devices. True, the opposition may not have too many cards to play in seeking

There needs to be a concentration on what Bahrain is doing ‘right’ and how it is addressing the major issues which is much more constructive than mere name calling.


The Good News Blues Bahrain

concessions from a government broadly willing to compromise on political and social issues. But the opposition’s failure to do little to curb the violence which is damaging to Bahrain’s reputation and parts of the economy, is one such card they do hold. To paraphrase the lyrics of Kenny Rogers, The Gambler, they still ‘hold ‘em,’ and show little willingness to ‘fold ‘em.’ These things may be unpalatable but it is foolish to ignore them.

So indeed, it is important to keep the focus on the underlying strength and diversity of the Bahraini economy, its democratic practices, enviable social welfare programs, its candidness in engaging in national dialogue and compromise, the innate strength of its nationalism and its own concerns about sectarian agendas. It is, in the main, an optimism rooted in reality. The courageous decision to throw open the country to critical foreign scrutiny under the Bahrain Independent Commission Inquiry (BICI) set a precedent for an openness and optimism which must not be squandered by a slowness in implementing the major recommendations, which were accepted by the government.

There is optimism for renewed growth and recovery, and a return to regional eminence but it is also important that people are realistically appraised and informed about short-comings and setbacks. The foreign media and foreign governments have become less vociferous in their criticisms of Bahrain, and official spokes-people are doing a faster and better job. Telling things the way they are, without gloss and spin, is likely to be more beneficial in the long run.

In public life, one gild’s the lily at their peril. Lilies are beautiful flowers in their own right, hardly needing of embellishment and featuring on major ceremonial occasions, birthdays and weddings. But neither should we forget that they also feature at funerals! GFI

The author is a former senior diplomat and political adviser with extensive international experience in strategic and parliamentary affairs, and is currently working in Bahrain

There is optimism for renewed growth and recovery, and a return to regional eminence but it is also important that people are realistically appraised and informed about short-comings and setbacks.


Business Banking

Islamic banking assets with commercial banks in the GCC reached US$445 billion at the end of 2012.

GCC IslamIC bankInG assets

According to estimates by Ernst & Young’s Global Islamic Banking Center, Islamic banking assets with commercial banks in the GCC reached US$ 445 billion at

the end of 2012, up from US$ 390 billion in 2011, with the outlook for the industry remaining relatively positive in 2013. This represents a 14% year-on-year growth, which is considerably lower than the five year average of 19%.

Qatar was the fastest growing market where Islamic banking assets are expected to have grown by more than 23% during 2012. While Islamic banking assets with commercial banks in the GCC grew by 14% in 2012, conventional banking assets grew by only 8.1% - indicating the relative resilience and potential of the industry.

Ashar Nazim, Partner, Global Islamic Banking Center, Ernst & Young said: “We expect a relatively positive outlook for the Islamic banking industry in the GCC. Quality of growth remains under pressure and we expect more Islamic

banks initiating an honest introspection of their operating model, especially with regards to the weak data management infrastructure.”

“Inability of most Islamic banks to generate accurate data and on time remains a serious concern for the management, the board as well as the regulators. Where such information is available, the analysis remains very rudimentary and has not really translated to a true competitive advantage.”

In comparison to their conventional banking peers, Islamic banks remain technologically disadvantaged as software systems are primarily designed for financial institutions based on conventional banking frameworks. While the industry regulators are looking to tackle this issue, it remains a concern for the industry leading to significantly higher operational and commercial risk. In Oman for example, the Islamic Banking Regulatory Framework has recently been introduced, requiring Islamic banking institutions to ensure that

all core banking systems are certified as Shari’a compliant.

“Major investments in transforming the operating model are underway. Discussions with management reveal that a common theme across most banks is ‘to get to know their customers’,” said Nazim.

Global Islamic banking assets with commercial banks are now at US$ 1.55 trillion at end of 2012 and projected to exceed $2 trillion by 2015. GFI

Qatar was the fastest growing market where Islamic banking assets are expected to have grown by more than 23% during 2012.

Islamic banking assets in the GCC grew by 14% in 2012, conventional banking assets grew by only 8.1%

Demand for Sukuk set to grow

Globally, Islamic banking assets grew 50% faster than the growth rate of the overall banking sector


Feature Interview

By James Quinn

IntervIew wIth etIhad CeOJames HoganThe chief executive of Etihad, James Hogan, tells James Quinn how he has transformed the airline’s fortunes, what he thinks about Heathrow and why he’s interested in an Aer Lingus stake.

James Hogan is sitting pretty. He has spent the three hours before we meet in the company of 200 or so bankers, financiers and suppliers delivering Etihad’s financial

results for 2012 and its outlook for the coming years.

With profit after tax of $42m in the year to December 2012 on sales of $4.8bn – compared with a net profit of $14m in the same period a year earlier – the Australian-born airline chief appeared confident and assured as he set out the Abu Dhabi airline’s stall.

With the Middle East airline having grown from a start-up in 2003 to what he refers to as a “global brand” today, Hogan, who earned his wings in the industry at Ansett, BMI and Gulf Air, is pleased with the position the airline is

now in six years after he became chief executive.

When he was asked to transform Etihad in late 2006 it was a shadow of what it is today. A year before he joined, the airline had nine aircraft, was running at 60pc capacity and had 1.5m passengers – or “guests” as he insists airline staff call them – a year. Last year, Etihad had 71 planes, was flying at 79pc capacity and had 10.3m passengers.

It is his global alliance with partner airlines of which he is most proud. The strategy has seen Etihad take equity stakes in four airlines around the world – 29.9pc in Air Berlin, 3pc in Aer Lingus, 10pc in Virgin Australia and 40pc in Air Seychelles.

Hogan refers to it as the airline world’s first “equity alliance”, and argues this is

a far better model than simply joining one of the large airline alliances, such as oneworld , whose members include British Airways, Cathay Pacific and American Airlines.

“I think they’re fractured,” he says of the major alliances.

“The one thing we’ve been able to do is we move fast, we don’t have the bureaucracy of an alliance. Because we have ‘skin in the game’ of our equity partners, we’re as focused on their profitability as our own profitability. Whereas in the alliances, they’re all competing with one another.”

Hogan argues that alliance partners focus on one another’s revenue top line, while Etihad’s equity strategy allows it to have conversations on booking technology, engines, product discussions


Interview Feature

and the best ways of cutting costs.Last month Hogan and the heads of

the four investee airlines visited Boeing to discuss their fleet needs for 2020 and beyond – the first time they have approached a manufacturer in this way.

Hogan is also working on a combined loyalty programme – topbonus – which will merge Etihad’s existing scheme with that of Air Berlin and Air Seychelles in the first instance.

He cites the two partner airlines as prime examples of the equity strategy, pointing out that both are now profitable, having been loss-making before Etihad invested in them.

“People were surprised we’d invest in Air Berlin,” he says of the December 2011 deal which saw the Abu Dhabi airline pay €72.9m to raise its stake from 3pc to 29.9pc. “We saw Air Berlin had huge value with regard to brand and market place presence.

“But 12 months later, one could argue, it wasn’t a bad investment. The business has turned around, it’s profitable.”

The latest airline on his radar is India’s Jet Airways – part of Hogan’s strategy to tap into the air market in the fast growing region.

Having ended talks with rival Kingfisher last year, Hogan won’t be drawn on when, or if, Etihad will invest, but admits that he met the Indian prime minister and other government ministers four weeks ago to discuss the situation.

“When you’re doing any transaction you have to ensure you understand the

laws of business,” he says.“We’re one of the first airlines that’s

looking to take advantage of the changes to the foreign direct investment (FDI) rules, to invest in Jet.

“We’re completing our review of the business and just want to ensure that in whatever stake we take, we’re complying with the regulations.”

Specific areas of concern in India include tax on fuel and “monopoly” airport charges. Etihad spent $70m last month buying Jet’s three slots at Heathrow in a sale-and-leaseback transaction designed to give the Indian carrier a cash injection.

“You’re right, acquiring the [Heathrow] slots means we’re interested to do something. But we have to do it on the right terms,” he says.

The right terms did not arrive with Virgin Atlantic. Hogan admits he spent time looking at buying the 49pc stake in Sir Richard Branson’s airline, which Singapore Airlines eventually sold to Delta last December: “We like the Virgin business, we like the Virgin holiday business, but we just couldn’t get to a point where we agreed and so they moved on.”

Another area where he doesn’t want to give too much away is around Etihad’s ongoing relationship with Aer Lingus, the Irish flag carrier.

“It’s an important stake. We fly in to Dublin 10 times a week and it’s a profitable route for us,” he says.

“We’re working very closely with Chris

[Mueller, Aer Lingus’s chief executive] and his team on what we’re doing with the network moving forward.”

A third bid attempt from low budget rival, Ryanair, for the Irish airline was blocked last month by the European Commission. Hogan says

he always thought the Ryanair bid would be unsuccessful: “Let’s see how things get bedded down. We’re watching it.”

Asked specifically if Etihad will buy a higher stake once the Ryanair bid has lapsed, he said: “We’ll wait until all this is out of the way.”

Hogan’s vision is to build a profitable, sustainable airline with connections around the world, connections that will increase Etihad’s passenger load factors and so increase profitability.

Although the airline has its roots in the Middle East, he is aware of the need to expand geographically, but says five investee airlines may be close to the maximum needed.

And what does he think of Middle East rival Emirates, which is on track to become the world’s second largest airline this year?

“They’re a global brand and in a short time we’ve also become a global brand,” he says.

“The mandate [from the Abu Dhabi emirati] is about a successful airline that’s best in class, the right shape and size, and one that makes money. We don’t intend to be the biggest.” GFI

The latest airline on his radar is India’s Jet Airways – part of Hogan’s strategy to tap into the air market in the fast growing region.


Saudi Arabia Real Estate

Compiled By CBRE

REAL ESTATE MARKETVIEWSaudi Arabia

OverviewSaudi Arabia’s annual Gross Domestic

Product (at current prices) has risen by just over 106% since 2005 and growth is set to continue in all sectors through 2013.

Forecasts vary, but generally agree that oil revenues will remain the engine for continued growth although its impact may be slightly moderated in 2013 by the re-emergence of supply from Iraq.

The non-oil sector is forecast to continue to grow by around 6% in 2013, largely stimulated by domestic expenditure.

The ratings agencies have signalled their approval of Saudi Arabia’s strategy of paying down national debt and investing in infrastructure.

Sovereign ratings remain broadly positive as follows: S&P AA- (stable), Moody’s Aa3 (Stable) and Fitch AA- (Stable).

In the real estate sector, the key issue over the past few years has been the growing problem of ‘social’ or ‘affordable’ housing, which remains largely out of reach for the majority of the population largely due to the lack of financial products available to them.

The reason for the lack of products has its roots in the lack of security for lenders in the event of mortgage defaults. After at least 15 years of debate, the Real Estate and Financing Law was published by SAMA in mid-2012 in an effort to resolve these issues.

Sadly, this has not proven to be the case, with most focus applied to finance companies rather than banks, although several additional


Real Estate Saudi Arabia

laws have yet to be published.It is hoped that the law related

to foreclosures will be specifically addressed in the ‘Execution Law’, but until this is published the issue remains unresolved.

There appears to be some recognition that the lack of a regulated real estate sector is acting against the interests of the Kingdom, however, at this stage there appears to be little consensus as to what the problems are and how they should be tackled.

Key issues remain the activities of brokers, the lack of professional property management and the land trading market.

Office Sector In broad terms the office market in

Saudi Arabia is buoyant with strong ‘latent’ demand for office space. However, in all three of the major cities there is some confusion as to the physical location of the Central Business District and the future office sector dynamics of each city.

For example, when faced with lease renewals and/or requirements for expansion space, tenants in Riyadh are struggling to decide whether they should stay where they are, move to a more ‘prime’ location in northern Riyadh or wait for prestige space in one of the master planned mega office projects such as King Abdullah Financial District (KAFD).

In Jeddah, the picture is more fragmented with new office space of varying qualities emerging all over the city. It is difficult for new and moving office tenants to understand where they should actually be, quite often these decisions are eventually led by the preferences of the senior decision-makers who generally live in the emerging high-end districts of western and northern Jeddah.

In Eastern Province the vacancy rate is substantially lower than in both Riyadh and Jeddah as a result of the strong demand driven by oil and gas companies entering the market, but despite this, significantly less office space is under development.

Even in Eastern Province, what prime office space does exist appears to be

increasingly randomly distributed across the city, although the key issues remain security and vehicle access. For this reason, much of the newer space is located on the various major highways linking the cities of Al Khobar and Ad Dammam.

The last 5 years have revealed an interesting divergence in rental rates for office space that would be classified as ‘International Prime’ space and ‘Local Prime’ space in Riyadh. This reveals that there is currently an undersupply of top quality space of the standard required by international prestige occupiers who also require top quality maintenance and professional property management.

This quality of space is currently only

found in two buildings; Kingdom Centre and Faisaliah Tower. Conversely, the data reveals falling rental rates for ‘Local Prime’ space across Riyadh and this type of space looks set for continued falls as the volume of stock continues to rise.

Office rents in Jeddah have shown a small upward movement in general terms, but there is little or no separation between international and local prime space, largely because there is no ‘International Prime’ office space in Jeddah.

The top and bottom ends of the market have moved (slightly upwards) at the same pace over the last few years and top end rents have risen by 14% over the last five years. The quality of new space in Jeddah is on the rise, but it remains to be seen whether this will be justified by

demand and more importantly, premium rental rates.

Residential SectorThe issue of housing remains a

complicated one for Saudi Arabia. It is estimated that 60% of the Saudi national population, approximately 10 million Saudis, live in rented accommodation. The problem of high land prices hinder the attempts by private sector developers who find themselves largely unable to meet the price requirements of the mid to low-end sectors of society who wish to buy a property.

High net worth Saudis continue to favour land as a long-term investment vehicle, vastly inflating residential land prices and consequently excluding low-cost housing from vast areas of the Kingdom. There is virtually no regulatory framework provided by the Government to govern land trading, and the participants typically take little account of the actual economic (or ‘residual’) value of the land when making their investment decisions.

An additional layer of complexity comes with the current system of land grants. At present, widows and males over 18 are eligible for a residential land plot regardless of income or economic status. However, this process has resulted in large numbers of plots that remain undeveloped because the recipients do not have the financial resources to build out their plots. The Ministry of Municipal and Rural Affairs has distributed around 2.2 million plots in this way, but there is no data recording how these plots have actually been utilised. There is the possibility that most of them remain undeveloped and therefore these grants are proving insufficient in addressing housing needs in the Kingdom. In order to address this, there are proposals for the Government to buy back the lands that they have previously distributed. Of course, if this policy is followed through, the individuals involved will have the money for building a house, but no land plot.

Given the amount that is written on the topic of housing in Saudi Arabia by a wide variety of analysts, it might be worth looking at this subject in detail and challenging some of the assumptions

Key issues remain the activities of brokers, the lack of professional property management and the land trading market.


Saudi Arabia Real Estate

that are being made. Data reveals that current household sizes for Saudi nationals average around 6, which means there are around 2.7 million households. Through natural population growth, the Saudi population is growing by around 2.5% per annum; if we assume a constant household size, this would be equivalent to 70,000 units per annum. The growth in the number of expatriates has recently slowed due to various government initiatives, but remains somewhere around 1% and therefore necessitates an additional 15,000 units per annum (based on similar household sizes). 85,000 units per annum is a reasonable number of houses to be built by the private and public sectors, however it is challenging given the lack of development finance available to the private sector.

In terms of an existing shortage of housing, this is less easy to assess, because it requires an assessment of what the average household size should be. As household sizes have migrated slightly downwards over the last decade (6.08 persons to 5.84 persons) and the average household size in most western European countries is around 2.5 persons, there has been a prevailing assumption that household sizes should be smaller, but that the only thing holding this up is the lack of housing. If analysts assume that the average household size should be 5 for example, this immediately implies a housing shortage of over 500,000 homes. Because this is precisely what many analysts have done, the requirements for meeting housing need growth together with perceived existing shortages are considerably large.

However, this assumption regarding appropriate household sizes can readily be challenged by data from high-income economies in the region such as Qatar and Abu Dhabi, where household sizes for nationals are around 8 and 6.5 respectively. In these economies there is no shortage of housing for nationals and maybe we should start to reconsider whether the shortages calculated by analysts are actually as significant as they are assumed to be. As data below reveals, rental rates in many parts of the Kingdom’s major cities are hardly rising

High net worth Saudis continue to favour land as a long-term investment vehicle, vastly inflating residential land prices and consequently excluding low-cost housing from vast areas of the Kingdom.


Real Estate Saudi Arabia

at all. However, this rarely gets noticed in the same way as those isolated areas where rents are rising fast

There have been some sharp rises in rental rates in particularly popular (‘emerging’) areas of both Riyadh and Jeddah and these have attracted many headlines. However, the graph reveals that in both cities there are also areas that have changed very little during 2012. In Riyadh rental rates have risen by between 1% and 14% for villas with the largest rises being in the central areas. The variation for apartments is less, at between 3% and 10%, with the area under most pressure being the western part of the city.

In Jeddah, the eastern parts of the city have changed very little (around 1%) for both types of accommodation, while the western areas are showing rapid growth at 20% for apartments and 6% for villas. It is likely however, that much of the increase in apartments is driven by new and better quality supply rather than increases on a like-for-like basis.

There is no doubt that much of the existing housing in Saudi Arabia is in poor condition and needs to be refurbished or rebuilt, but there is significantly less time pressure on this process as the housing units do actually exist at present and do actually perform the function of housing. Other housing requirements are in some respects self-inflicted. For example, the large-scale demolition of housing in Makkah has resulted in a need to replace a significant number of units in the city.

TenureCurrent thinking is also focused on the

60% of non-home owners as though this should figure should be nil. However, there is always a need for rental accommodation, to allow for temporary circumstances, employment mobility, social norms and so on. The propensity to buy homes can also vary widely, in Europe for example, the UK has a home-ownership rate of around 70%, while in Germany the figure is only 42%. So, current ownership rates in Saudi Arabia are in fact broadly comparable to those in Europe’s leading economy, Germany.

It would seem then that the issue is not one of the aggregate supply of housing for sale, but a mixture of issues

concerning the right type and price of housing, in the right locations, with the preferred tenure. Large numbers of low-cost housing units have gone unsold, particularly in large-scale masterplanned communities in Southern Riyadh and these were eventually offered for lease after failing to sell. Expectations in terms of unit sizes and prices will also need to be moderated over time, and a secondary trading market needs to be established to enable mobility in the market.

A Saudi national who buys an apartment today generally has to stay there for the rest of his life, with the inevitable consequence that despite pressure on housing, the appetite for purchasing an affordable apartment is extremely modest. In addition, the lack of experience and regulatory framework in the Saudi market with respect to issues such as freehold and leasehold ownership, service charges and the maintenance of common areas will take some time to resolve, but these issues also make the purchase of primary home apartments deeply unattractive to most buyers.

The ability of all sectors of Saudi society to access mortgage finance would stimulate the market significantly, injecting much needed capital into the sector – at present, less than 5% of house purchases are made using mortgage-style financial products. However, the long-documented lack of security for mortgage lenders means that risk is priced into such products, making them unaffordable to all but a few. The latest regulations published by SAMA forming the Real Estate and Financing Law, do not address the key issue of foreclosures. At present, only three new laws have been published, but it is hoped that the two laws still under consideration; the ‘Execution Law’ and the ‘Registered Real Estate Mortgage Law’, will fully address this topic. GFI

To receive the full CBRE MarketView, or for further information contact: Mike Williams, Head of Research & Consultancy, Middle East Research, CBRE Bahrain WLL t: +973 1655 6602 e: [email protected]


Middle East Oil & Gas Market

Arabian countries are known for grand scale projects. The Middle East needs 100 additional Gigawatt of energy within the next 10 years.

Middle east Oil & Gas Market – the PiPeline tO talent and technOlOGy

Oil and natural gas is a fundamental commodity to the global economy. Rising oil prices and demand for energy reflects the

continuing growth in the Middle East. The long-term outlook for refining and petrochemicals industries in the Middle East remains bright despite the global downturn. The main drivers for project development continue to be a combination of high oil and petrochemical prices and economic growth combined with the commitment to invest in domestic infrastructure. According to the Gulf Petrochemical & Chemicals Association (GPCA), the Gulf Cooperation Council (GCC), petrochemical capacity is expected to increase from 77.3 million tonnes per annum (mtpa) to 113 mtpa by the end of 2015, marking a 46% rise. Equally, as high oil prices and the effects of recession force refineries in the US

and Europe towards closure, the global industry is increasingly being driven into emerging markets like the Middle East with its growing thirst for energy.

Rob Howard is AspenTech’s Senior Director of Business Consulting for the Middle East and North Africa (MENA) based in Bahrain and responsible for leading a team of technical consultants who work with Middle East clients to improve the profitability of their engineering, manufacturing and supply chain business processes and solutions. Here, Rob provides insights into the trends across the resource rich MENA region and the key issues affecting

Rob Howard - AspenTech’s Senior Director of Business

Consulting for MENA

Photo Credit: iStock


Oil & Gas Market Middle East

companies’ operational performance. Oil refineries are generally large,

expansive industrial complexes, which convert crude oil into a wide range of products including petroleum naphtha, gasoline, diesel fuel, asphalt base, heating oil, kerosene and liquefied petroleum gas. A typical operation can process hundreds of thousands of crude oil barrels per day. Refineries, in particular, are under enormous pressure to cut operating costs and manage record high and fluctuating crude prices. Decision-makers have to deal with challenges ranging from operational issues, market forces, crude feedstocks delivered outside their control and converting those crudes into the necessary products at specific times.

This has led to a great focus on the downstream supply chain management processes and tools, which result in significant benefits for the refinery. The key is producing products to an exact specification to be made available to customers.

One of the noticeable trends in the Middle East oil and gas sector is the design and construction of a growing number of mega-sites on greenfield sites across the region. This trend covers not only refineries, but also large integrated petrochemical plants.

According to the World Energy Council, the Middle East needs 100 additional Gigawatt of energy within the next 10 years. The Arabian countries are known for grand scale projects. Currently, 113 power, water and energy projects are planned for the region worth a total of 180.4 billion US dollars.

Technology is instrumental in driving high-quality energy management. Energy reduction and energy efficiency is increasingly a priority to oil and gas companies working in the region in terms of driving enhanced profitability and protecting the environment. Together, all of these developments are adding

complexity to the industry in the Middle East and driving demand for solutions that can deliver process optimisation and operational efficiencies.

We are seeing more complicated upgrading and conversion processes to produce more diesel than in the past. These more complex process plants will require more sophisticated, highly-skilled employees to monitor and run them efficiently. Plants in the Middle East are generally becoming more heavily integrated into the global supply chain. As such, organisations will need to become more responsive to pricing fluctuations, to changing demand and to filling niche gaps in their portfolio of solutions. Investment in technology, innovation and talent can play a significant role in helping overcome these challenges.

Technology is vital in helping fill the skills gap in both refining and petrochemical industry sectors. All the large multinational engineering, procurement and construction (EPC) companies are now forming local in-country based companies and, therefore, need to source large numbers of locally-based engineers who then need to be trained. It is widely known that there is a skills shortage the process industries. However, many leading energy and chemicals companies, as well as educational institutes in the Middle East, recognise the importance of nurturing new talent. For example, the ALHOSN University in Abu Dhabi has recently announced that students of its Industrial Engineering Department have been working on energy based projects resulting in prototype logistical support for ADNOC petrol stations. The computerised model optimises supply and service operations while minimising impact on the environment. This type of initiative to develop talent into the industry highlights the region’s willingness to not just invest in technology, but also in its local talent and knowledge. GFI

One of the noticeable trends in the Middle East oil and gas sector is the design and construction of a growing number of mega-sites on greenfield sites across the region.


Cars News

Hyundai’s new 2014 Centennial, now in tHe Middle east

The 2013 Infiniti FX

Middle Eastern car-enthusiasts can now hit the roads in Hyundai’s latest Centennial. The saloon comes with a choice of 3.8 V6 GDi or 5.0 V8

GDi engines. The Middle East is the first region outside of Hyundai’s Korean home market to receive the new model, and prices start from around BD22,619 for

the 3.8 V6 GDi, and around BD26, 390 for the 5.0 V8 GDi, subject to specifications. The V8 5.0-litre GDi unit delivers 430bhp propelling the car from 0 to 100kph in 5.8 seconds. The V6 3.8-litre GDi engine pumps 334bhp.

The Centennial has been enhanced for greater comfort and improved technology. The rear seats have been completely

redesigned and the front seats have also been adapted. Passengers in the back can now enjoy new dual 9.2-inch LCD rear monitor entertainment screens and control their travel experience via a new DIS system. The electronically-controlled multi-link suspension has been fine-tuned, while an air suspension option is also available. Improved tire wheel rigidity, newly designed wing mirrors for less wind noise, quieter engines and improved transmission mounting bracket rigidity help to make every journey as quiet as it is smooth.

Alongside a number of subtle design upgrades to the exterior, the dashboard has been totally redesigned and incorporates a new premium clock created in collaboration with luxury lifestyle design firm, Innes & Lister Inc., while the new centre console sports a cleaner feel thanks to the introduction of a new Shift by Wire gear lever. The cabin exudes quality, with high class leather and wood trim all around.

A Head-Up Display, projects speed and navigation information on the windscreen, allowing drivers to keep their eyes on the road, while a Blind Spot Detection system alerts the driver of any vehicles or objects that are in the car’s blind spots which enhances safety features for the saloon. GFI

Now named FX37, the latest Infiniti FX is features a 3.7-liter VVEL V6 which pumps 329-horsepower and 360 Nm of torque. The SUV has an

advanced Moving Objection Detection which in addition to showing the driver a virtual 360-degree image of the area around the vehicle helps enhance the driver’s situational awareness by providing visual and audible warnings (front or back range object detection) if the system detects moving objects (such as another vehicle) within the displayed image in situations such as when pulling out of a parking space. Using sophisticated image processing


News Cars

technology, the system detects moving objects within the top view (when the vehicle is in park). When starting off or backing up, it detects moving objects crossing within the front or rear views.

Infiniti FX also features Infiniti’s Park Guide Technology to assist with safe and easy parking. The guidance system continuously monitors the steering angle and vehicle position. A bird’s eye-view representation of the parking surroundings is shown on your display. All you need to do is to follow the suggested route shown via colored guide lines.

Standard safety features include a seat belt reminder system, standard Infiniti Advanced Air Bag System (AABS), dual-stage front supplemental air bags with occupant classification and seat belt sensors, seat-mounted side-impact supplemental air bags, and roof-mounted curtain side-impact sand rollover supplemental air bags for enhanced outboard seat occupant head protection.

The 2013 Infiniti FX is offered in seven exterior colors: Malbec Black, Liquid Platinum, Graphite Shadow, Black Obsidian, Midnight Mocha, Moonlight White and Iridium Blue. GFI

Volkswagen brought the seventh generation of the iconic Golf to the kingdom with the launch of he new Golf at the Bahrain City Centre.

Available with a 1.2 litre 105hp and 1.4 litre 140hp four-cylinder engines and a seven-speed dual clutch gearbox DSG, the new Golf is offered at an incredible starting price of BD 7,490 /- with 3 years/45,000km free service, 3

years roadside assist and 5 years extended warranty, unlimited mileage.With the Golf, Volkswagen made safety technologies such as ABS, airbags and

Electronic Stability Control (ESC) accessible to a wider public. Now on board the new Golf comes a whole series of further driver assistance systems. These include multi-collision braking as standard, the proactive driver and passenger protection system (including automatic tautening of seatbelts and closing of windows), the XDS transverse differential lock, also fitted as standard, ACC adaptive cruise control plus Front Assist inclusive of city emergency brake function, Lane Assist, fatigue detection, the latest generation of the Park Assist system and of the Dynamic Light Assist function (automated Xenon full beam). The independent Euro NCAP organisation gave the new Golf four innovation awards for its safety systems.GFI

Visit the Volkswagen showroom in Sitra.

tHe all-new Volkswagen golf

lexus sets Middle east sales ReCoRd

Lexus announced its increase in 2012 sales with 31,288 units sold during the year across the Middle East. This increase has seen Lexus

sales across the region jump by more than 50 % over 2011 making the Middle East a strong growth market for the premium luxury brand.

Maintaining its leadership status in the luxury vehicles category, Lexus continued its dominance with a 36% market share in the GCC. The LX range of SUV’s emerged as the highest selling model with 47 % market share showcasing the outstanding road prowess,

impeccable quality and sheer style unmatched among luxury SUVs.

The new and re-designed models in the Middle East, include the flagship LX570, RX 350 and RX 450h in the SUV segment; and the all-new ES lineup which included the ES 350 and ES 250.

The GS 350 from Lexus received the accolade of being voted Best Executive Saloon at the 2012 Middle East Motor Awards.

The year also saw the introduction of the 2013 Lexus LS line-up which includes the LS 460, LS 460L, LS 600hL hybrid, and the first-ever LS 460 F SPORT GFI

Visit showroom in Sitra or www.ekkanoo.com.bh


Cars World’s Most Expensive Car

By Kim Kelaita

THE WORLD’S MOST EXPENSIVE CAR… SOON TO BE MADE IN THE UAE

It is set to be the region’s first home grown sports car, with a diamond encrusted gear stick, high-tech features and golden stitching. But the W Motors Lykan also comes with

a hefty price tag of $3.4 million. CNN’s Marketplace Middle East checked out one of the world’s most expensive cars at its debut in Dubai.

The glitz and the glamour in Dubai is nothing new...but at this year’s Dubai International Boat Show ALL eyes were ON SHORE with the showing of a 3.4 million dollar car...

Besides the luxury and exclusivity, this car has a flat six-twin turbo 3.8 liter engine, producing 750 horse power and 1000 cubic meter of torque. Makes it go from 0-100 in 2.8 seconds and maximum speed of 395 km/h, it’s one of the fastest cars in the world. It’s also fully made of carbon fiber, it has the first holographic display with interactive motion inside meaning we replaced all the screens with a projector in mid-air that projects all the images in three dimensions. You can control them, hold them and feel them in mid-air like all the movies you see in 20 years, while this car is the only car in the world that has this technology inside.”

With gold stitching on the leather seats, to precious stones used in the head lights…The Lycan will be the first manufactured Arabian sports car…

and ONLY 7 cars will be available for purchase...

Kim Kelaita: Would people really pay this amount of money with all the turmoil in the region?

Ralph Debbas: Ralph Debbas - Chairman/CEO, W Motors S.A.L: “If we’re going to wait until the whole region is at peace and then continue our projects we are never going to continue. Not only is it in the Middle East we have problems, it’s all over the world. You cannot expect the whole world to be at peace to do it, no matter where we are, and we’re expecting everyone to support us especially the Arab world knowing we are making them proud by creating the first brand of cars. So far the response has been very positive and hope it’s going to continue to the end.”

Kim Kelaita: Diamond-encrusted cars, gold-plated iPads and big-ticket items are nothing new in the region, but in today’s economic climate would people really pay 3.4 million dollars for a car?

Dubai based Motoring Journalist Jonathan Castle says the 3.4 million dollar car will sell without a blink of an eye…

Jonathan Castle: Dubai based

Motoring Journalist : People will buy a 3.4 million dollar car in this region, because it’s a 3.4 million dollar car. Pure and simple. And it’s going to sell better here I think than anywhere else, it will certainly sell first here.

And then of course there is always the investment angle….

Ali Jaber: “Yes I would spend 3.4 million dollars on a car, but with 3.4 million I think I would yeah, if there is a rarity behind it. So there you go it’s a pretty good investment, cause if you sell that next year.”

High-end cars mixed seamlessly with more than 400 boats and 19 super luxury yachts some of which go for more than 250 million dollars…

Still, 3.4 million dollars for a car got a lot of head shakes.

Fadi Ghannoum: I don’t know, but I like the idea of the whole carbon fiber base body, 3.8v6 that’s a lot of power. 3.4million dollars is a bit too much for it.

The carmaker says the Lycan is going to be in full production from the United Arab Emirates by the end of 2014...

Only In Dubai! GFI

The article, exclusively edited for Gulf Insider, was provided by CNN’s Market Middle East

Kim Kelaita


Feature Hospitality

Gulf Insider visits Bahrain’s first lounge bar.

Imagine sipping on an exotic drink as you relax on a couch; exchanging a few comments with friends about live Grands Prix in HD. Now imagine sipping on some hot coffee, once

again relaxing on a couch as you catch the flag off for your favourite race; basically having a good time! If you want to realise this imagination then head straight to Shift 7, the sports bar at Elite Resort and Spa, in Muharraq. This F1 tribute bar is always abuzz with car-racing enthusiasts especially during car-racing seasons, though never too crowded.

We move around the bar see exclusive paintings of sports cars, by renowned artists which could easily pass off as professionally shot photographs. Then there are original scaled-down models, miniatures, working models and Formula 1 accessories. Other memorabilia like car tyres, race suits, helmets and engine parts that have been part of past races, adorn Shift 7’s walls. “If you’d fill-up gas in the miniatures you could actually drive them!” exclaims Olga, and adds that the memorabilia is the MD’s personal collection; perhaps the most exclusive and expensive collection, under one roof.

Shift 7 has a spacious interior with specially designed furniture and soothing decibel levels. Located on the 15th floor, it is the highest sports bar and offers a fantastic view of Bahrain’s skyline. One element that I particularly loved is the mosaic tiles that are fitted to create the image of a McLaren. The bar has HD

screens showing live telecasts of all sporting events including like Football, Tennis, Rugby, Superbowl and NBA. The elegant bar counter and contemporary design of the bar area accentuate the motor-sport feel and the sea view is quite spectacular. The lounge area (the non smoking area) is plush and the ideal setting to meet friends and have a relaxed evening. Even the restrooms are adorned with car models – quite an education for any car lover!

Olga tells us about their Karaoke nights where guests enjoy singing songs across languages including Arabic, English and Russian. “We entertain a diverse crowd,” she says, “essentially cosmopolitan; we have guests as young as 22 and as old as 65!” Shift 7 is planning to introduce business lunches and sun-downers soon.

We head outside the sports bar after some delicious finger foods and refreshing mocktails. The warmth of the staff and the friendliness is easy to get used to. Olga points out at the golden Ferrari horse at the entrance; majestically standing on two feet it makes the perfect exit-impression. Keep going back; Shift 7 is a habit easy to make but hard to break! GFI

Shift 7 is located within 5 minutes of the business district and 10 minutes from the airport. Adequate parking space available. For reservations call on Tel. +973 1731 3333

The Ferrari Horse

Shift 7 interior

Ms Olga Bokhanova, Bar Manager

Enjoy exotic drinks at Shift 7

Dr. Lucy LiuQualified practitioner in traditionalChinese Medicine and Acupuncture

Also now available chiropractic and medical massage

Traditional Chinese Medicine and Acupuncture offers relief from chronic pain

Dr. Liu and her team offer specialist treatment for conditions such as:• Diabetes. Weight Loss. Migraine. Insomnia.• Strokes & Paralysis. Infertility. Impotence. Prostatis.• Stress/Nervous System problems.• Poor circulation. Rheumatism. Arthritis. Varicose Veins. Gout.• Joints, Neck, Shoulder & Lower Back problems• General pain relief.

For appointments & consultations please contact:

1766 4088 or 3964 1997Direct line: 3777 8922Under the medical supervision of Bahrain Medical Group


Feature Interview

Have you ever passed by an office building during the night and wondered why the lights are switched on when no one is working in there at the time?

Sheer waste of energy! What’s even worse is when the lighting used is not energy efficient.

YK Almoayyed & Sons Industrial & Building Systems (YKA-IBS), ETAP’s local partner in the kingdom is trying to bring about a mindset change through its comprehensive energy saving lighting solutions. In the business since 1949, ETAP is a well-known European company and provides YKA-IBS the means to be at the forefront in providing lighting solutions. YKA-IBS, through its partnership with ETAP, will be offering lighting solutions, striving for an improved total cost of ownership. Thanks to the use of energy efficient lighting fixtures ETAP fulfills the customers’ needs by using fewer luminaries. That means reduced installtion costs, fewer lighting fixtures to maintain and better energy savings. “We provide a three-fold experience to our customers,“ says Ajit, “one, we create energy saving designs, two we manufacture customised products and three we offer consistent after sales service.” He talks of how their team

takes care of every element, no matter how small – for instance ensuring that the light’s physical design suits the building’s interior!

YKA-IBS has an impressive portfolio including Bahrain City Centre, King Hamad Hospital, Bahrain Financial Harbour, Reef Island, Abraj Al Lulu.

Ajit believes that the future of lighting is LED (Light-emitting diode). He explains that LED technology may be considered expensive at present but in the near future it is sure to become a norm. “The beauty about LED is that there are no lamps as opposed to incandescent light bulbs where you need to keep changing the lamp once it gets fused.” He talks about the initiative by the Ministry of Electricity and Water in Bahrain to distribute one million LED and CFL lights to all households in the kingdom, free of cost. “The population is growing which means increased use of energy and this puts a lot of pressure on depleting resources. This initiative by the government would help reduce energy-consumption in a big way.” He believes the energy that is saved can be utilised for the industrial sector which would boost the economy of the country.

On being asked about what challenges YKA-IBS faces in the market, Ajit points

out that ETAP has an excellent network which they leverage to provide regional and local support to customers. This accessibility and promptness in support is what gives them an edge over competition. He also talks of how energy is virtually free in the Middle East and so bringing about the mind-set change to switch over to green technology is a challenge. “We market our solutions to medium and large scale projects as bringing about a change at this higher level would ultimately trickle down.” Ajit explains how they promote a sustainable outlook to their clients. He believes that a myopic vision will not help. Yes, energy saving lighting is an investment but in the long run cost-reduction is guaranteed. GFI

YK Almoayyed & Sons Industrial & Building Systems General Manager, Mr Ajit Bolar talks to Melissa Nazareth about the brand’s recent tie-up with ETAP Lighting and sustainable energy consumption.

“Green LiGhtinG is the Future”

YKA-IBS, through its partnership with ETAP, will be offering lighting solutions, striving for an improved total cost of ownership.

Since 1949, ETAP has been trusted for

products. The IBS partnership with ETAP has enabled us to provide customers in Bahrain with professional lighting solutions from design to installation.

For further details, visit the IBS showroom and explore a range of smart and green

lighting ideas, or call 17874661.

SMART LIGHTING SOLUTIONS FOR

A GREENER PLANET.

ETAP PRODUCT RANGE:

I I

INDUSTRIAL & BUILDING SYSTEMSSalmabad, Kingdom of Bahrain

Tel: +973 17874661. Fax: +973 17874663www.almoayyed.com


Europe Property

INVESTORS DRIVE GROWTH IN EUROPEAN PROPERTY MARKETE

uropean commercial real estate investment turnover reached €44.8 billion in the fourth quarter of 2012, an increase of 53% on Q3 2012 and 25% on Q4 2011,

according to the final tallies recorded by CBRE.

The increase in investment activity was largely driven by a significant rise in cross-border investment. Cross-border investors accounted for 46% of the total in Q4 2012, up from 36% in Q3 2012 (and 38% in Q4 2011). This increase also goes a long way towards explaining the growth in average transaction size in Q4 2012. The average transaction volume for investors buying in their own market stood at €21 million, increasing to €56 million for cross-border European investors and €89 million for non-European buyers.

US buyers were the most active cross-border investors accounting for 23% of international investment in the second half of 2012. The purchase by US private equity firm Lone Star of over €1 billion of assets in eastern Germany was the most notable deal of the quarter. This was due not only to its size but the relatively opportunistic nature of the buyer and the diversity of the assets acquired. The transaction also suggests that international investor interest may have begun to return to the secondary market.

German investors were the second most significant cross-border buyer in the second half of 2012 but, unlike American investors, German money remained focused on prime property and in key European cities. Paris and Central London accounted for 50% of German cross-border investment. Norway made up the top three cross-border investors this quarter following strong activity by the Norwegian government pension fund (NBIM), which was involved in several of the largest deals recorded in 2012, including the purchase of a 50% interest in the Meadowhall shopping centre in the UK and the sale and leaseback of Credit Suisse’s headquarters in Zurich, Switzerland.

London continued to lead the way as the largest and most liquid investment market in Europe accounting for 21% of activity in the European markets in 2012. International investment activity in London registered a sharp year-on-year increase of 59% in 2012 rising to €13.4 billion compared to €8.4 billion in 2011, with substantial investment coming from Asia and the Americas.

The French market benefited from institutional funds seeking prime office and retail space in Paris and Lyon and increased activity from Middle Eastern sovereign wealth funds. With the exception of the capital from the Middle

East, cross-border investment into Paris came largely from Europe, in contrast to London.

Four of the ten largest transactions recorded in Europe in H2 2012 occurred in Germany, and 26 deals were valued at over €100 million. Berlin, Munich, Frankfurt and Hamburg were among the top ten most active cities for investment in 2012. In contrast to London and Paris, more than half (59%) of investment in these cities was made via domestic investors. Similarly, investment in Stockholm, Oslo and Copenhagen was largely domestic.

Jonathan Hull, Managing Director, EMEA Capital Markets, CBRE, said:

‘Whilst London has been the major beneficiary of inward capital flows to date, we believe a number of other European cities will be seen as more attractive during the course of the year. However, differing risk profiles of investor groups will dictate their depth of interest in individual markets. While there is no imminent prospect of trading volumes returning to the levels of 2006 or 2007, Europe’s major markets are operating at a much improved level of liquidity and the gradually improving economic backdrop in some core markets is likely to facilitate greater cross-border investment in 2013”. GFI

Source : CBRE


Underwater Feature

By Rob Waugh

A New Kind of ‘water wings’

A new hang-glider-esque carbon fibre ‘wing’ lets snorkellers ‘fly’ through the water pulled along by a speedboat.

Divers can hurtle through the water up to 25 feet below the surface - and hit speeds two to three times higher than even world-class swimmers.

The Subwing was invented in the summer of 2010 by Norwegian Simon Sivertsen while on a family holiday to the Mediterranean when he saw some driftwood.

Simon was struck by the idea of using the wood as a float or wing to help him though the water and began making drawings of a prototype.

At a shopping center in Italy, he bought two cuttingboards, a garden hose and connected the two ‘wings’ that hung together, which gave a completely different control.

Now just a year later the ‘Subwing’ has been lauched worldwide with models available online from around $600+.

Matts Westgard, Simon’s cousin, helped him develop the gadget, ‘I am not a free-diver but even I was able to hold my breath for one minute 30 seconds in the end after using the wing. Thailand

was amazing and you could see all the fish and turtles and even sharks as you move through the water.

‘We have found the best speed is around two to three knotts underwater but you can reach speeds of up to seven knotts or 12kmph. Go any faster and the face mask pressure becomes too

much and it is a strain on your kneck. It is amazing to use and you can rotate, roll and even use it upside down.’

Matts said at the moment the ‘Subwing’ was available online but there were plans to begin working with suppliers soon. GFI

Underwater hang-glider lets daredevils hurtle along 25ft below the surface - pulled by a speedboat


Dubai Hospitality

Gulf Insider stays at the tallest hotel in the world.

The JW MarrioTT Marquis, Dubai

How can a hotel be both huge and intimate? Well the new JW Marriott Marquis somehow manages it. This brand new and iconic property offers plenty of public space in

luxurious and comfortable settings. We like this hotel very much, and were constantly impressed by the little details, and that despite there being two towers of 73 floors each, between them containing 1608 guest rooms and suites, we never had to wait for a lift more than a minute.

There’s more than 7,500 square meters of indoor and outdoor event space, including two ballrooms, 9 restaurants, and 5 bars and lounges including a steakhouse, experiential sushi restaurant and a cocktail bar situated on the 71st and 72nd floors. The hotel is also home to Rang Mahal by Atul Kochhar, the first Indian chef to be awarded a Michelin Star.

The 4,000 square-meter Spa and Health Club provides treatments designed to “ensure mind and body renewal” as promised in the brochure. A pool deck covers the 7th floor.


Hospitality Dubai

Major conventions of up to 1,000 people can now visit Dubai and meet, stay and dine, under one roof.

The opening of this hotel means that for the first time major conventions of up to 1,000 people can now visit Dubai and meet, stay and dine, under one roof. It should also be a new hub for those residents of Dubai who enjoy of finer things in life when it comes to restaurants and spas.

This latest edition to the JW Marriott group of properties is now officially the world’s tallest hotel according to The Guinness Book of Records, and last month it threw a lavish party to celebrate its official opening and say a big “hello” to Dubai. We attended their ‘black-carpet event’ (black-carpet being signature to JW Marriott) along with the likes of Donna Karan, founder of the high-end fashion brand DKNY, and British singer Leona Lewis who made a mystery guest appearance and entertained everybody with some of her hit songs, along with various other entertainers – each unique in their own way. There was a speed painter that made the crowds gasp, and a cello duo who between them played the most beautiful music. It really was a great party, very well organised as you would expect, and everybody who was everybody in Dubai seemed to be there enjoying themselves.

We spoke with General Manager, Rupprecht Queitsch, about his plans for the new hotel. He informed us that he isn’t competing with other luxury hotels in Dubai as much as promoting Dubai against existing cities associated with major international conventions such as Berlin and London. He believes that conference organizers around the world are waking up to Dubai’s advantages as an international convention hub and that he will be fully exploiting Marriott’s extensive international network of contacts to attract much new convention business into Dubai. GFI

For more information about the JW Marriott Marquis Dubai or to make a reservation, visit www.marriott.com, or contact the hotel directly online at www.jwmarriottmarquisdubai.com

Room with a view: on looking out of my 64th floor window I realized I was above the clouds (picture taken using my Blackberry).

Interesting Hotel Figures Tallest Hotel at 355m1608 total rooms and suites 882 king size rooms 486 double rooms 236 club suites 4 royal two-level suites 14 F&B outlets 8 retail shops 5,100 sq meter event space


Feature Hospitality

Gulf Insider stays at the first Amari property in the MiddleEast.

AmAri DohA

Located in Qatar’s vibrant capital, Amari Doha, owned by Sharaka Holdings and managed by ONYX Hospitality group’s leading upscale brand, Amari, is very

much a city hotel. We particularly want to talk about the spa here – it’s amazing and makes you feel as if you were staying at a resort hotel. Breeze spa is on the roof top floor of the hotel and provides one double room, two single rooms, one Vichy shower *room, a Turkish bath, a Sauna and a Jacuzzi area. The owner of this luxury marquee has travelled around the world and has been inspired by ideas from all the places that he’s visited, for the spa; perhaps that’s what makes it so impressive. We thought the gym was quite basic. Of course it has very modern running machines but it may not be the gym for the serious body builder!

The hotel is surrounded by quite a bit of building work as there are numerous infrastructure development projects coming up, in the city. Our view from room 905 was of huge work-in-motion. We took a picture of that view and intend

to visit the hotel once more, in a few years and click a picture once again; it would be fascinating to see the change!

Amari is a dry hotel unlike most five star hotels and it is a four to four and a half star hotel. It has a beautiful conservatory – roof terrace and we really like this space. It offers a wonderful view of the city and is a great place to relax.

The quality of service, at Amari is commendable! We happened to forget the laptop charger back home and mentioned this to the General Manager. He assured us that they would have a spare charger at the hotel and would arrange to give it to us – unfortunately they didn’t! Nevertheless, the manager spoke to one of the staff members who had the same laptop, an Acer. She brought the charger from her home, the next day and so were able to work without any difficulty. Now, that is real service and we were really impressed by it!

Amari offers some really good cuisine. They also have two lounges, a restaurant and a pool bar that offer an interesting menu. Musheireb Restaurant serves

delicious Arabic and Thai food – a great place to start the day, with breakfast. At the lounges, you can enjoy a drink over snacks while taking in the beautiful Doha skyline view.

We’d say that for someone who is on a business trip and wants to be pampered, Amari is the perfect location!

*A Vichy shower is a metal arm with five to seven shower heads that runs parallel to a cushioned treatment table, so you can get a shower while lying down. GFI

We particularly want to talk about the spa here – it’s amazing and makes you feel as if you were staying at a resort hotel.


Hospitality Feature

THE DOMAIN BAHRAIN TO OPEN IN MAY

The Domain Hotels has finally made public its plans for its first property, located in Manama’s Diplomatic District. The team behind the project includes a group of international hoteliers with decades of experience, who were seeking to expand on the traditional hospitality model. General Manager, Patrick de Groot, describes it

as a “building just waiting for stories.” The boutique 36 storey property houses 61 luxury suites and 68 rooms

and sidesteps a traditional hotel lobby for an entrance lobby where each guest is greeted by a Domain Manager, who ushers them up to their room to check them in and introduce them to their butler. Rooms and suites are all serviced by floor-butlers, who handle everything once the guest is checked in by a Domain Manager. Although butlers seem very old fashioned, De Groot stipulates that they are “Old World butlers with New World ways”.

The Domain is also home to a spa and health and fitness center spread over two floors. On the 11th floor Vie offers a Resident Spa, Day Spa and Quick Spa, replete with cutting edge therapies and technologies, designed to relax, rejuvenate or revitalise.

The 12th floor houses 375 meters of flexible meeting space, including three tech-enabled boardrooms, three meeting rooms and a pre-function foyer with a capacity of up to 110 guests for dinner. Other facilities include 8 floors of valet-only parking. The Domain also hosts nine high-end restaurants and lounges. GFI

GCC COuNTrIEs rusH TO DEvElOp NEw pOwEr prOjECTs

Rising oil and gas prices combined with increasing domestic power requirements are prompting governments across the GCC to increase investments in

the power and water sector, as well as secure alternative sources of energy.

Installed generating capacity in the GCC is forecasted to reach 170,000MW by 2019, according to the latest data from MEED Insight. The cost of the new build requirement alone will be an estimated $66 billion, with at least the same amount needed to be invested in T&D infrastructure in the next six years.

Confronted with such a massive

demand, governments across the GCC are now pouring money into power and water projects with investments reaching $25 billion last year.

In 2012, Saudi Arabia led the GCC with a total of 148 projects in the power and water sector, investing more than $8 billion; Kuwait followed with 68, valued at close $3 billion. The United Arab Emirates is next with 62 projects, worth a little more than $3 billion; while Oman has 49 projects worth $1.2 billion. Qatar boasts 35 projects worth $1.8 billion; and although Bahrain has only 15 projects, the total value of investment is estimated at $7.3 billion.

“As increased investments in the power and water sector create new opportunities for contractors and project developers, the more we need to ensure that the projects being developed adhere to the highest standards of excellence, especially because they play a role in the progress of the GCC as a whole. The awards programme was established to recognise completed projects, and since its establishment has been a benchmark for project excellence,” said Becky Crayman, Head of Awards, MEED Events. GFI

Bahrain has second largest investment in power and water projects in GCC worth $7.3 billion.


Business Visa Card

Visa registers 19 per cent increase in international spending during Dubai Shopping Festival 2013.

increase in international Spending for Visa

International visitors to the UAE spent over $589 million on their Visa cards during the Dubai Shopping Festival [DSF] 2013, registering a 19 per cent year-on-year growth over DSF 2012,

according to data issued by Visa Inc., the world’s largest retail electronic payments networks and a lead sponsor of the region’s premier shopping event.

The results collected by the company’s VisaVue® Travel data service indicated the month-long retail and shopping extravaganza received spending on overseas-issued Visa cards in the first week of DSF touching $153.35 million [January 3-9, 2013]. The Friday of the first weekend of the sale [January 4, 2013] also witnessed record spending, with over $25 million spent on overseas Visa cards.

The data also revealed that cardholders from Russia, Kingdom of Saudi Arabia and the United Kingdom were the top spenders during DSF 2013, contributing in excess of $82 million, $66 million and $53 million respectively to the UAE economy. Visa cardholders from each of these countries showed significant increase in spending compared to DSF

2012, with Russians spending 34 per cent more on their Visa cards compared to last year’s sale, while Saudis spent 26 per cent more than DSF 2012.

Like the last DSF, Other Retail spending continued on top of merchant categories, with more than $200 million spent during the month-long event. ‘Lodging’ (hotels and apartments) came

in second place with over $138 million spent; while ‘Remaining merchants’ which includes ATM withdrawal, ‘Other travel and entertainment’ and ‘Department stores’ completed the top five spending segments, with over $92 million, $41 million and $22 million spent respectively on their Visa cards. GFI

No Country Transaction Amount

DSF 2013 DSF 2012 DSF 2012 Ranking

YOY change

1 Russian Federation

$82,176,363 $61,303,273 1 (no change) 34%

2 Saudi Arabia $66,834,299 $53,204,116 2 (no change) 26%

3 United Kingdom $53,029,498 $46,372,104 3 (no change) 14%

4 USA $45,137,345 $34,155,187 5 (+1) 32%

5 India $23,569,442 $17,795,135 7 (+1) 32%

6 Angola $18,863,490 $18,287,617 6 (-1) 3%

7 France $16,962,415 $13,645,306 9 (+1) 24%

8 Kuwait $16,491,079 $13,772,829 8 (-1) 20%

9 Qatar $16,084,287 $12,053,061 11 (+1) 33%

The top inbound spending countries during DSF 2013 were:

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Art Art Dubai

Art DubAi 2013

The seventh edition of Art Dubai was held last month at Madinat Jumeirah. 75 galleries across 30 countries participated at the art fair which featured the work of over 500 artists.

Marker 2013 (in its third year), a set of curated concepts, focused on the rapidly evolving nature of cities in West Africa and the way in which these changes impact society.

The fair launched a new programme, Sculpture on the Beach which is an exhibition of large-scale works on the Mina A’Salam beach, a five-minute walk from the gallery halls and adjacent to the Art Dubai Beach Brasserie.

This year, Global Art Forum – a platform for cultural discussion and debate – explored ‘Definitionism’. It featured commissioned projects and research, as well as six days of live talks.


Art Dubai Art

The DXB Store showcased innovative works of many a UAE based designers and artists.

Campus Art Dubai – a new education initiative run in partnership with the Dubai Culture and Arts Authority, was part of the art fair and featured a series of intensive courses for artists and curators living and working in the UAE. GFI


Technology Gadgets

Tech picKsYour ultimate gadget guide!

Samsung Galaxy Grand DuosSamsung’s latest in its range of phablets is the dual SIM Galaxy Grand Duos. Though it has a striking resemblance to Note II, Samsung has managed to imbue an essence of the Galaxy SIII in the device. In addition to standard Samsung features, the Galaxy Grand has a 5-inch TFT LCD (Thin Film Transistor Liquid Crystal Display) offering great clarity in display. It is powered by the latest Android OS - 4.1.2 JellyBean. A rear 8-megapixel snapper offers full HD video recording. There is also a 2-megapixel front camera. Samsung claims that Galaxy Grand uses software that allows the user to forward calls from one number to the other if users have call-forwarding on one SIM and call-waiting on the other. You can opt for different mobile billing plans for either SIM and make the most of competitive call and data plans. It is available in white and metallic blue.

Google GlassIt is a wearable version of a computer featuring all Google applications and its functions. All you have to do is slide on the gadget like a pair of eye-glasses and activate it saying ‘Okay Glass’. The functions include photography, hands-free recording, map (directions), messaging, information search, voice-translation and more – all based on voice commands! It is available in Charcoal, Tangerine, Shale, Cotton, and Sky hues and is pretty durable but light. Though the date to pre-order the Glass Explorer edition is now over, let’s hope this gadget is made easily available soon!

Alcohoot iPhone BreathalyserThis gadget is designed to accurately check your breath and decide if you’ve been ‘partying too hard’! It also verifies if you’re over the legal driving limit for your country. The Breathalyser provides accurate personalised information taking into account your gender and bodyweight. This iPhone prototype device is designed to work with a companion application on your smart phone, provide social networking features and also save lives.

HAPIfork by HAPILABSThe HAPIfork is an electronic fork that monitors your eating habits. It alerts you with the help of indicator lights and gentle vibrations when you are eating too fast; not the best to use at your business luncheon, is it! Every time you bring food from your plate to your mouth with your fork, it is called a fork serving. The gadget measures how long it took to eat your meal, the number of fork servings per minute and intervals between fork servings. This information is then uploaded via USB to your Online Dashboard to track your progress. The HAPIfork also comes with the HAPILABS app plus a coaching program to help improve your eating behavior.


Feature Lifestyle Luxury

LifesTyLeLuxury fashion for the modern man!

Hair Grooming Cream by American Crew Create your own look with this nourishing grooming cream.

The Game by DavidoffA woody-aromatic blend of Juniper Berries, this spring-summer fragrance comes in a gimmicky bottle.

Core Trainer Jacket by NikeHit the gym or the field this summer in Nike’s Manchester United trainer jacket. It offers many of the same features of the premium N98 series, but with slightly more stylish notes.

Last Word

Humour - managing To Have FunN

oted business author Paul Hawken said it best, “We lead by being human. We do not lead by being corporate, by being professional or by being

institutional.” Perhaps that’s why many leaders are embracing one of our most undervalued human resources they have at their disposal – their sense of humor.

Putting humour to work isn’t about employees standing around the water cooler exchanging one liners. Having a sense of humour is about having a sense of perspective and using the ability to find the humour in situations to manage stress and creatively problem solve. Adding humour is about celebrating work, not trivializing it.

Here are a few “guiding lights” to help you manage to have more fun in your organisation.

Take Yourself Lightly Too many of us fall victim to the

dreadful disease “acute professionalism”. The symptoms include a furrowed forehead, high levels of stress and blocked creativity. The cure is simple - learn to take yourself lightly, while still taking your job seriously. When you laugh at yourself, you demonstrate your humanity and encourage others to do likewise. As an added bonus, you take away anyone’s ability to laugh at you.

Be SincereDogs know when we’re not

sincere, so there’s a good chance our employees will too. If you show up Monday

morning with a transplanted Robin Williams persona, staff may be cynical about your new found attempts to lighten the office mood. So be yourself. Practice sharing your own unique brand of humour and only do what feels comfortable for you.

Think Small and SimpleThe biggest factors that contribute

to employee morale don’t cost a lot of money or take a lot of energy; it’s the small things done on a consistent basis that matter. So look for easy opportunities to introduce a little humour - put up a humour bulletin board, create a humour room, include humourous quotes in correspondence and practice spontaneous humour.

Practice Relevant Humour

The more you celebrate humour specific to your office, the more meaningful the humour is. Relevant, work-related humour becomes part of the corporate history and helps teams

to bond around shared experiences. Start collecting a humour file of quotes, cartoons, funny customer questions and anecdotes that relate to your organization.

Practice Safe HumourHumour can break down barriers

as easily as it can build walls, so make sure the style of humour you practice is “safe”. Non-sexist, nonracist, non-religious humour is the order of the day. Also be aware of times when humour may not be appropriate. The safest form of humour? Laughing at yourself.

Give Yourself and Your Employees Permission to Play . . . and then get out of the way. Remember, as a leader, people look to you to set the tone for the office. You have the power to decide whether you’re going to be a roadblock on the inspiration highway or a catalyst for creativity and positive energy. GFI


www.foodexpbh.com

Bahrain International Exhibition & Convention Centre

16-18 April 2013

Showcasing Bahrain’s Food and Hospitality sectors and hosting exhibitors from all over the GCC.

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For further details please contact Amal Abdulla, Senior Sales O�cer on Tel: +973 1755 8898. Mobile: +973 3387 9969, or email: [email protected] A. AlAmer, Senior Sales O�cer, Bahrain Exhibition & Convention Authority (BECA),

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