BIG June Issue

GETS REAL ON DIYAR AL MUHARRAQ PROJECT

A business entrepreneurial lifestyle magazine from the Gulf

VOL:3 NO:6 JUNE 2009

GLOBAL BRANDMiNI Turns 50

REAL ESTATE rental market review

SPECIAL REPORTGCC Economy

DIPLOMATIC FOCUSH.E. Ghassan M. HusainIraqi Ambassador

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GETS REAL ON DIYAR AL

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PUBLISHER / EDITOR IN CHIEF Sameer Uchi

MANAGING PARTNER / GROUP EDITOR Mohd. A. Kayani

GENERAL MANAGER / MANAGING EDITORParitosh V. Palav

ASST. EDITORMahmood Taiseer

CONTRIBUTORSLeila Belpaz

Suhail Al Gosaibi

PRODUCTION MANAGERSachan Chandran

GRAPHIC DESIGNERHaroon Rasheed

Shaji Thomas

PHOTOGRAPHERMani T.

DISTRIBUTION CONTROLLERSandeep Shrivastava

A MAXMEDIA PUBLICATION

EDITORIAL

The Bahraini business community’s ongoing resentment over a couple of LMRA decisions is understandable but hardly appreciable. One needs to consider the fact that the authority has broken the old shackles of the labour market and has a mandate to achieve a multitude of

goals whose benefits will take some time to be clearly visible. The decisions under hot dispute are the BD10 per expatriate levy and the free movement of labour from August 2009. The former decision on the levy has been heavily debated in the parliament and a freeze has been ordered on its collection until next January. However, the abolishing of the reigning sponsorship system will commendably instil greater transparency and freedom for the expatriates. It is apparent that the authority’s reforms formula is based on market feedback taken from both the sponsors and expatriates. Unfortunately, the woes of expatriates weigh much higher than that of the sponsors hence the awarding of the opportunity to freely change their jobs should be seen as an acknowledgement of their contribution towards building the economy for decades. The grossly abused concept of sponsorship will see its demise by August this year thus ushering a pioneering era for Bahrain. I have heard Qatar is expected to follow suite by implementing labour reforms similar to that of our island.

Coming back to the monthly expatriate levy the business community for sure has a lot to reason with. Imagine a construction company with 1000 expatriate workers (mainly low wage labourers) paying BD10000 levy every month or a whopping BD120000 a year! For many companies this might be a huge portion of their profits ultimately affecting their income profile in the short term. The present parliamentary freeze on the same is understandable but then what is the solution? Naturally, the authority is trying to make the expatriate labour expensive so as to make way for more Bahrainis to be recruited and in the process split the levy between itself and Tamkeen which is undertaking numerous training initiatives for its citizens. I believe a solution to this chaos will be to put up a levy based on the class of employment which can be done by segmenting the work profile. For instance, charging BD10 per month levy for companies employing top to middle level executive expatriates and a smaller levy for low wage workers would be more agreeable to the corporate and industrial sector and probably more reasonable.

For sure Bahrain’s labour market reforms are here to stay. It is difficult to shed years of patterns in just one year. No doubt, enough heat is being generated whilst tackling such sensitive issues but one must look at the ultimate picture and work out methods that could yield enhanced productivity and profitability. For sure, sponsorship still exists in its cruellest form even today but the onus lies on us to participate in this change. Truly, the level entrepreneurship is quite wide in Bahrain and it is the bogus and old-school-of-thought companies that need to be awakened fully. Kudos to the Bahraini government for taking up such bold initiatives. Keep it going!

THE HEAT!FEELING

4 JUNE 2009

C O N T E N T SJ U N E 2 0 0 9 . V O L 0 3 N U M B E R 0 6

N E W S We bring the latest news from GCC and international regions.

C O V E R S T O R Y At a time when the real estate market worldwide is hit with recession, the Kingdom of Bahrain’s prestigious Diyar al Muharraq is going strong and is on schedule. BIG talks to Mr. Aaref Hejres, Chief Executive Officer, Diyar Al Muharraq on the development of the project and gets his reflections on numerous issues including environment sustainability.

F E A T U R E S Special Report BIG scans various reports and finds out how the GCC region can beat recession on various fronts provided countries follow strict discipline and chose not be greedy.

Real Estate BIG meets up with rental companies in the Kingdom and finds out how the market is shaping up amidst recession. Diplomat of the Month BIG meets up with H.E. Ghassan Muhsen Husain, Ambassador of Iraq to Kingdom to Bahrain, and discusses the Iraqi-Bahraini relations and gets his views on various other topics. Investment BIG speaks to experts and tries to find out how the GCC region has been building up its investment portfolio abroad. Global Brand Around 25,000 enthusiasts from more than 40 countries converged on Silverstone to wish MINI a happy 50th birthday. BIG brings out the historical perspective of one of the world’s greatest, most fashionable and desired brand. Management BIG takes a cue from the ongoing economic crisis and checks out the inspirational aspect of life that is now seen developing around the world.

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Bahrain’s rental market

Aaref Hejres

5JUNE 2009

J U N E 2 0 0 9 . V O L 0 3 N U M B E R 0 6

C O N T E N T S

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6854 H.E Ghassan Muhsen Husain

MaseratiInvestment Tracking

Company History Contributing effectively to the country’s diversification programme, Qatar Steel Company has successfully demonstrated how strategic thinking can yield consistent results. BIG takes a look at the company’s history and brings to you the making of a steel giant. Car Review

BIG test drives Maserati.

C O L U M N S Leila Belpaz checks out the newly opened affordable fashion outlet in Bahrain.

Suhail G. Algosaibi talks about how personality plays a key role in Marketing.

P L U S Appointments

Lifestyle

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6 JUNE 2009

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VOL:3 NO:6 JUNE 2009

GLOBAL BRAND

MiNI Turns 50

REAL ESTATE

rental market review

SPECIAL REPORT

GCC Economy

DIPLOMATIC FOCUS

H.E. Ghassan M. Husain

Iraqi Ambassador

VOLV :3 N

NOW

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BIG has a dedicated team specifically for answering your business related queries, be they big or small, weird or wonderful! Don’t forget to send your letters, questions, comments, feedback, views and ideas [email protected]

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LETTERS TO THE EDITOR

Dear B.I.G,

Now that the Indian elections came to

an end, do you think the outcome of

these elections that took place in such

an important country is going to affect

the international, or at least the Asian

economy?

Kumar

Dear Kumar,Elections in India are often regarded as one of the biggest owing to its long history of practicing democracy. I believe the people of India’s confidence in bringing back Congress at the leadership is a testament that they a looking for stability and prosperity in the long run. India has already carved a niche for itself in the Asian economic scenario and its contribution has been quite immense, plus the country seems to have not been so much affected by the global recession. So yes, India stands to make a difference.

Editor

Dear B.I.G,

Bahrain, Saudi, and UAE has recently

confirmed the first cases of swine flue in

the region, is there any consequences that

may make any traveler or businessman

think twice before visiting countries that

have already been affected by it. Don’t

you think that the world should have

been well prepared after the experience

of the bird flu?

Naseem Moh’d

Dear Naseem,A prominent fact about any flu is that there is no quick cure to it. Even animals have the right to fall sick, it is only now that we know that when they are affected we are the victims. Swine flu is something new and will take time for us to find some permanent solution to

it. Similarly, when bird flu broke out we were left stranded on what to do, even though come winter and there are still cases of it. With new cases of swine flu breaking out, I am sure authorities will find some solution. In terms of traveling to the US, I don’t think it will be affected since only one off cases are being reported at the moment within the region.

EditorDear B.I.G,

After the incident of the missing Air

France Jet, I think the airlines industry

should re-evaluate itself and stop claiming

that we are in the age of technology and

that these accidents are part of history.

Ali

Dear Ali, Latest investigation reports suggest that the Air France jet might have been subject to hailstorms larger than the size of the tennis ball. Also, if you recall the latest report, Air France has admitted to have ignored their call for upgrading electrical systems since 2007. In this age of fierce competition the airline might have continued doing business without taking these upgrades under consideration. Also, when nature decides your course or date, no amount of technology can help you to beat it.

Editor

Dear B.I.G,

As an expert, do you think that abolishing

the sponsorship system will do anything to

the Bahraini employer? I understand that

Bahrain is now having the backing of Qatar,

but we really need to understand what

LMRA or the Labour Ministry think.

Employer

Dear Employer,I think most of the employers are rushing into controversies without allowing the organisation to run full benefits of the schemes. LMRA is just a year’s old and we feel it is doing the right things, we just need to have patience. It is an effort to boost the overall labour market for the betterment of Bahrain put if we keep on pulling the rug under its feet all the time, things will only become slow.

Editor

GCC NEWS

8 JUNE 2009

Banks expected to axe more jobsBAHRAIN: Further job losses are expect-

ed at Bahrain banks before the end of June,

the head of the Bahrain Bankers’ Union

warned in remarks published recently, af-

ter Gulf International Bank (GIB) laid

off 17 per cent of its local workforce amid

mounting losses.

“I heard a Bahrain bank and others are

talking to their staff friendly and telling

them ‘prepare yourselves for layoffs by the

end of the month’,” Khalil Zainal said.

“We are preparing ourselves for the GIB

case and maybe two or three other banks

who will lay off staff in the next months,”

he said, declining to name the lenders.

GIB laid off a total of 59 Bahrain-based

employees - 37 Bahrainis and 22 expatri-

ates - in late May, out of a total workforce

of 346 in the kingdom. GIB in March an-

nounced a net loss of US$396.2 mn for the

full fiscal year 2008, compared with a net

loss of US$757.3 mn recorded in 2007.

Bahrain Centre for Excellence visits Tamkeen

BAHRAIN: As part of the activities of the

Bahrain Centre for Excellence and its efforts

to set new benchmarks for development in

the Kingdom, a delegation led by the Advisor

to Mr. Mohammed bin Ibrahim Al Mutta-

wa, the Prime Minister’s advisor for Cultural

Affairs, visited the offices of Tamkeen.

The delegation was headed by Mr. Mo-

hammed Al Muttawa and Mr. Abdulellah

Al-Qassimi, Tamkeen’s Chief Executive

in the presence of the Tamkeen’s executive

management team.

Al Muttawa toured the office and spoke

to management and key project leaders about

the different aspects of Tamkeen’s core en-

gagement with Bahrain’s labour market. This

comes as part of the objectives of the Bahrain

Centre for Excellence and its endeavour to

upgrade performance at both the public and

private sectors. They also expressed their de-

sire for further cooperation with Tamkeen

within the framework of efforts to promote

the culture of excellence and implement it in

government and private organisations and

institutions on the kingdom of Bahrain.

“The main objectives of the Bahrain Cen-

tre for Excellence are to create a sustainable

competitive performance indicator for organi-

sations and institutions in both sectors, the

public and the private. The Centre strives to-

wards promoting innovation, education, trans-

parency, and knowledge management. We also

strive towards instilling the culture of excel-

lence and achieving this impact within society

as a whole, focusing on enhancement, empow-

erment, and excellence,” Al-Muttawa said.

“We strive towards instilling the culture of excellence and achieving this impact”

BATELCO SIGNS OSS NUMBER 30BAHRAIN: Batelco has signed a new

One-Stop-Shop (OSS) agreement

with Greece-based OTEGLOBE. This

brings Batelco’s total number of OSS

agreements to 30.

Batelco has previously signed agree-

ments with operators located in many

countries including the UK, Germany,

Italy, Netherlands, Greece, the US, Can-

ada, Hong Kong, Malaysia, Japan, Ko-

rea, Philippines, Pakistan, Jordan, Saudi

Arabia, UAE, Singapore, Oman, Qatar

and Kuwait. OSS agreements comple-

ment Batelco’s range of international

connectivity services such as interna-

tional private leased circuits (IPLC) and

Global-MPLS (GMPLS).

IPLC and GMPLS services are ded-

icated secure international circuits that

ensure an instant connection to transmit

data. They provide a fast, efficient and

virtually error free digital connection, as

well as flexibility of working on a trans-

parent protocol that can be used on any

type of customer network application. It

also provides highly efficient connectiv-

ity that improves data throughput and

organisational productivity.

KALAAM SIGNS KEY DEAL

BAHRAIN: Kalaam Telecom and

Gateway Gulf have signed a strategic

alliance to offer financial and corporate

customers the highest level of network

and systems reliability available in

Bahrain. Kalaam Telecom is one of the

only operators in Bahrain to offer both

diverse and redundant links on the last

mile connectivity.

Diverse and redundant links ensure

a highly efficient level of routing, which

is a mechanism to safeguard system

against any flaws or delays through a

high level of frequency, and therefore

efficiency creating minimal room for

any errors or delays. This agreement

with Gateway Gulf now means that

diverse and redundant routing in

addition to its current efficient mode,

also includes the Internet.

GCC NEWS

10 JUNE 2009

CAPIVEST Shariah Index started

BAHRAIN: CAPIVEST has announced

the next in its series of treasury structured

products, with the launch of the CAPIVEST

Shariah Index, linked to the S&P Europe 350

Shariah Index, in cooperation with a leading

global financial institution. The CAPIVEST

Shariah Index offering of US$50 mn was of-

ficially launched at the end of April 2009.

The product is designed to meet the

growing demand for Islamic investment

products and to provide investors with a di-

rect exposure to the S&P Europe 350 Sha-

riah Index at a time when prices are at the

lowest witnessed in many years, without any

risk to their initial capital.

This unique investment opportunity has

a four year maturity, provides investors with

100 per cent capital protection and 70 per

cent participation in the average quarterly

performance of the Index at maturity, with a

minimum of 4 per cent coupon at maturity in

the unlikely event that the Index returns less

than the minimum protected coupon.

“The launch of the CAPIVEST Shariah

Index is another example of the Bank’s com-

mitment to meeting the increasingly sophis-

ticated needs of Islamic finance investors.

Despite the current state of financial mar-

kets, CAPIVEST’s treasury products have

recorded positive performances. The Shariah-

compliant Capital Protected Equity Fund,

which was the first treasury product launched

by CAPIVEST, won the “Deal of the Year

Award-Bahrain” from The Banker magazine

in 2005. While the second treasury product

will be due for exit towards the end of this

year and is expected to return to investors 100

per cent of the invested capital in addition

to a 10 per cent profit.” Mr. Hassan Habib

Hassan, Executive Director of Treasury and

Financial Institutions at CAPIVEST said.

Mr. Hasan Habib Hasan

BDO Jawad Habib, DHL Express sign agreementBAHRAIN: Global logistics company DHL

Express, Bahrain recently adopted the com-

mendable Tamkeen Career Progression Pro-

gramme (CPP) as a channel of productivity

improvement and career development.

BDO Jawad Habib (BDOJHC), which

manages the CPP, has signed an agreement

with DHL Express, Bahrain. The agreement

was signed recently at the DHL headquarters

in Muharraq by Mr. Bill Todd, General Man-

ager, Bahrain Hub, DHL Express and Dr.

Ehsan Ghurbal, CPP Director at BDOJHC.

According to this agreement, BDOJHC

will assess and then enroll in the CPP 147 Bah-

raini employees from DHL to engage them

in the programme. These employees have dif-

ferent roles in DHL from team leaders, ramp

agent, sorters, to customer service agents. This

initiative is in line with DHL’s HR strategy

of developing talent and Tamkeen’s continu-

ous effort to focus on giving Bahrainis access

to ongoing world-class training that will result

in better career development.

Commenting on this agreement, Dr. Ghur-

bal said, “This partnership marks another im-

portant milestone for us. Tamkeen with BDO

JHC is devoted to meeting DHL’s outlined

requirements and highest international stan-

dards. We believe that training and productiv-

ity are correlated. Programmes like CPP are

designed to systematically develop the knowl-

edge, skills, and attitudes that are required for

any organisation to meet its goals”.

“This launch is another example of our commitment to meeting the needs of Islamic finance investors”

GULF AIR CELEBRATES ENVIRONMENT

BAHRAIN: As part of its continuing

Corporate Social Responsibility(CSR)

programme, national carrier Gulf Air

announced several initiatives com-

memorating the World Environment

Day (WED) being observed world

over tomorrow.

“Gulf Air, as a responsible corporate

citizen, fully endorses the theme for

WED 2009 ‘Your Planet Needs You-

Unite to Combat Climate Change’,”

said Mr. Björn Näf, Gulf Air Chief Ex-

ecutive Officer.

“As one of the biggest employers in

Bahrain, we carry the dual responsibility

of not only being the national carrier, but

also the responsibility of doing our part

in leaving a better world for our children.

It is one of our obligations to look after

and protect the environment. Last year

Gulf Air launched an integrated CSR

programme focusing on three key areas,

namely, climate change and clean air,

waste management and community ser-

vice, with goals to support each.”

Gulf Air has also initiated an internal

volunteering programme where by staff

members will be engaged in initiatives

designed to improve the environment

such as cleaning up beaches.

GCC NEWS

12 JUNE 2009

E.K. Kanoo to open Toyota PlazaBAHRAIN: EK Kanoo has recently an-

nounced that Toyota Plaza, GCC larg-

est Automotive Center, will be operational

very soon. Toyota Plaza is designed to be a

state-of-the art one-stop shop for all the re-

quirements of Toyota and Lexus users in the

Kingdom of Bahrain. This addition further

bolsters Toyota’s leading presence in Bahrain,

which currently operates 6 service and 8 spare

part centres located all around the Kingdom,

and is in line with EK Kanoo’s steadfast com-

mitment to providing the best possible level

of customer service.

Mr. Ayman Shehadeh, Toyota & Lexus

Brand Manager, said Toyota Plaza represents

a true upward shift in the level of services pro-

vided and, “enables us to provide numerous

exclusive benefits to our customers, whereby

we will be able to meet all their automotive

needs with complete ease and peace of mind

under one roof for a truly unique experience.”

The sprawling complex will feature a mas-

sive workshop equipped with the very latest

maintenance and diagnostic machinery. The

workshop, which is capable of servicing 350

cars at the same time, is complemented with

a full range of automotive service facilities,

such as a small Toyota and Lexus showroom

and accessories store, testing area, spare parts

and tire service center, car wash and polish

center, Toyota F1 accessories, a café, a six-

storey car park for 400 cars.

In addition to Toyota Plaza, EK Kanoo

also plans to open a number of other facili-

ties, including a brand new Lexus showroom

and service center in Arad.

First steel mill starts productionBAHRAIN: Bahrain’s first steel reinforce-

ment bar mill has begun production after

receiving government approval. It is also

looking to increase jobs at the facility to

200 in a matter of months.

The Universal Rolling (Unirol), which

took four years to build in the Hidd In-

dustrial Area, has utilised state-of-the-art

technology in steel rolling and manufactur-

ing in addition to the latest quality con-

trol systems. It has an in-house laboratory

in order to guarantee the highest level of

quality and compliance with British Stan-

dard BS 4449:97 grade 460, and American

Standard ASTM A615 grade 60.

“The commencement of production

at our plant comes after big efforts made

jointly by our team of Bahrainis and expats

in addition to the support received from

governmental agencies that made our suc-

cess possible,”said Mr. Mazen Almahroos,

Unirol Managing Director.

“This new industrial entity will reflect

positively on the lives of Bahrainis work-

ing with us, and on the real estate sector

specifically, and the local economy as a

whole,” he said.

“Currently the factory is running at

only a portion of its 200,000 tons per an-

num production capacity, with capability

of covering a huge part of the local de-

mand of the kingdom for this strategically

important product.”

“Unirol currently employs 130 people

and that number is set to increase to 200

within the coming months as production

is ramped up,” he said.

“We will work in the coming months

on training Bahrainis in order for them

to play a bigger role in this new industrial

entity,” he added.

He confirmed that the samples taken

from the trial production were tested by the

Works Ministry and conformity to interna-

tionally recognized standards has been con-

firmed. Engineers from the Ministry visit-

ed the facilities of Unirol and issued their

unconditional approval for use of Bahraini

steel produced by Unirol for government

and Works Ministry projects.

HEALTH OASIS PROJECT LAUNCHED

BAHRAIN: Trowers and Hamlins, the

international law firm, is pleased to have

advised the Royal College of Surgeons in

Ireland on the development and financ-

ing of a large scale specialist healthcare

project in Muharraq, Bahrain.

The US$1bn Bahrain Health Oasis

project was recently launched by His

Highness Shaikh Khalifa Bin Salman

Al Khalifa, the Prime Minister of the

Kingdom of Bahrain at a Foundation

Stone Ceremony. The Bahrain Health

Oasis concept extends over a combined

site of circa 60 hectares of multiple in-

ter-related components and will feature

three keystone projects: the Bahrain

Health Oasis, The King Hamad Gen-

eral Hospital (KHGH) and the Oasis

Private Hospital (OPH).

In support of these core medical edu-

cation and healthcare components, the

Bahrain Health Oasis will also house

Clinical Specialist Treatment Centres,

a Medical Innovation and Incubation

Centre, extensive provisions of offices

for medical and healthcare enterprises,

a five star resort and four star hotels to

include spas as well as a wellness centre,

a public promenade including an exten-

sive array of shops and waterfront cafes,

serviced apartments with managed care,

sports facilities, staff and student ac-

commodation and a high quality public

realm and park.

PROTIVITI SETS UP BFH OFFICE

BAHRAIN: Protiviti Member Firm,

the international business consulting

and internal audit firm, has established

an office in the West Tower of Bahrain

Financial Harbour (BFH). Protiviti is a

subsidiary of Robert Half Internation-

al, a member of the S&P 500 index.

“We are proud that Protiviti has

decided to operate from BFH,” said

Mr. Salwan Uchi, Bahrain Financial

Harbour Holding Company (BF-

HHC) Marketing Director.

GCC NEWS

13JUNE 2009

AUB launches huge prize schemeBAHRAIN: Ahli United Bank B.S.C.

(AUB) has announced major enhance-

ments to its popular MyHassad, savings

scheme. The new structure, aimed at re-

warding customers who save with the bank,

features 6000 prizes on offer including ‘Sal-

ary for Life’ prizes worth BD 6 Mn plus

Grand Weekly Prizes and Loyalty Prizes

worth BD2 mn each.

AUB has to date announced 40 Salary for

Life Winners with prize payouts of BD12

mn. Winners and customers alike value this

opportunity that creates a lasting difference

in their lives in respect to securing their fu-

ture. The new scheme offers 14 Salary for

Life prizes - of which 2 prizes are worth

BD1 mn each, 4 prizes worth BD500,000

each and 8 prizes of BD250,000 each.

In addition, the scheme offers a Grand

Weekly Prize worth BD 50,000 among

other weekly prizes. The scheme offers a

total of 480 weekly prizes aggregating to

BD2 mn in value.

Loyal customers of the My Hassad

scheme are now assured of instant rewards.

A BD2 mn pool has been set aside for Loy-

alty prizes and with 5,500 prizes on offer,

this is by far the best ever Loyalty program.

Menatelecom’s WiMAX strikes successBAHRAIN: In line with its expansion plan,

Bahrain-based menatelecom, an investment

subsidiary of Kuwait Finance House (Bah-

rain), and the first company in the world to

launch a nationwide WiMAX 802.16e end-

to-end network has recently broadened its

reach in The Kingdom of Bahrain as it has

witnessed great success with its subscriber

base exceeding expectations since it was

launched over five months ago.

“We at menatelecom are extremely pleased

with the recorded success of our WiMAX ser-

vice and we are making sure that the King-

dom remains a leader in new and innovative

technology. All the indicators point out to that

direction, as the number of new customers is

steadily growing, subscribers are expressing

their high satisfaction and the general per-

ception about menatelecom and its services

among the public ranks the company at the

forefront of telecom providers in the King-

dom,” Mr. Abdul Razak Jawahery, Executive

Manager Kuwait Finance House - Bahrain

(KFH), representing KFH as Vice Chairman

and Managing Director of menatelecom said.

“In response to this positive image, we

will expand our retail network to include a

new branch in Isa Town within one month

from now, and another branch in Muharraq

the following month,” he said.

“We at menatelecom have been able to

maintain and increase our growth expecta-

tions in terms of financial and operational

parameters. ,” he added.

Since menatelecom started its operations

in Bahrain in 2003, it has continued to re-

lentlessly invest in its network, new technol-

ogies and customer service, realizing that its

success is dependent upon sustained innova-

tion and customer care. menatelecom proved

its excellence and distinction by offering ex-

ceptional services within the context of the

best standards of quality. menatelecom’s 24/7

customer service is the first of its kind for in-

ternet services in the Kingdom of Bahrain.

Mr. Abdul Razak Jawahery

“We at menatelecom are pleased with the recorded success of our WiMAX service”

AL SALAM GETS APPROVAL

BAHRAIN: Bahrain’s Al Salam Bank

said recently shareholders of Bahraini

Saudi Bank had accepted its takeover of-

fer, marking one of the first steps toward

consolidation among Gulf banks this year.

Some 70.15 per cent of Bahraini Sau-

di shareholders approved the takeover

offer on June 1, Al Salam said in a state-

ment on the Bahrain bourse website. The

bank needed approval of 66.67 per cent

of shareholders.

Al Salam said April 22 it offered to

pay BD27 mn (US$71.62 mn) to take

over Bahraini Saudi. It said the offer has

now become unconditional, with the of-

fer period being extended to June 28. The

two entities would have a combined mar-

ket value of about US$470 mn.

The acquisition is one of the first this

year in the Gulf Arab region, where banks

are generally small in size. Some analysts

say the smaller players are ripe for consol-

idation as they look for ways to weather

the fallout of the financial crisis.

Al Salam has said it is looking to make

further acquisitions in Bahrain’s banking

sectors to grow its operations.

BAHRAIN AIR EXPANDING

BAHRAIN: Bahrain Air has expanded

its sales, ticketing and customer services

across Qatar with the opening of a

second office in Doha.

Mr. Ibrahim Al Hamer, Managing

Director and a group of senior

management including Mr. B.K..

Majmudar Corporate Planning

Director and Mr. A. Aziz Alshaer,

Security and Corporate Affairs

Manager attended the opening.

Mr. Al Hamer said to the new office

will make it suitable to book flights in a

more relaxed and stress-free atmosphere.

“Our travellers will not only be able

to enjoy our outstanding services in the

air, but also on the ground,” he said.

“There is increasing demand for

Bahrain Air flights in Doha from both

Qatari nationals and the expatriate

community,” he added.

GCC NEWS

14 JUNE 2009

Ministry of Works announces 2008 Annual Report

BAHRAIN: The Ministry of Works has an-

nounced outstanding achievements in 2008.

677 tenders and projects were issued to a

total value of BD256.9 mn (US$685 mn) as

part of its remit to create a world-class infra-

structure in the Kingdom in alignment with

the Bahrain Economic Vision 2030. The

Ministry’s project budget increased to BD10

mn (US$293 mn) and it managed projects

for client Ministries worth BD108 mn (US$

288 mn). The announcement was made dur-

ing an event held recently at the Crowne

Plaza Hotel, where the Ministry launched its

2008 Annual Report.

The achievements are a continuation of

a trend that has characterised performance

over the past few years. Mr. Fahmi Bin Ali

Al Jowder, Minister of Works, noted during

the event that the Ministry’s efforts are key

to sustained development for the long-term

future of the Kingdom.

“The work of the Ministry is integral to

realising the Bahrain Economic Vision 2030,

the National Strategy and those of the Bah-

rain Centre of Excellence. Our contribu-

tion includes strategic execution across four

themes, which help us to contribute to all

economic, social and cultural sectors in the

Kingdom. These are ‘Public Private Partner-

ships’ where we are engaging private sector

capabilities in implementing projects; as a

‘Key Planning Player’ where our Ministry

occupies a key role in master planning and

implementation in accordance with the Na-

tional Strategy; as a provider of ‘Sustainable

Quality Services’; and as a ‘Leading Profes-

sional Organisation’ where we aim to ensure

our workforce is highly motivated and that

we provide a culture and environment where

knowledge sharing and the power of synergy

and effort is at its heart,” said Al Jowder.

The Ministry is handling more projects

than ever with the expansion of roads and

sanitary engineering networks on course and

in full alignment with the Government Na-

tional Master Plan Development Scenarios.

In 2008 significant advances were made on

road expansion and development projects,

sanitary engineering projects and services as

well as with strategic Government projects.

Local monorail project on trackBAHRAIN: The Bahraini government

plans to start the Phase-2 of the Bahrain

monorail network by the year end.

“We have completed Phase -1 of the

project where consultants carried out a

comprehensive study. It all depends on

finance before we move forward with

Phase-2,” Mr. Fahmi Al Jowder, Minister

of Works, told a press conference recently.

The ambitious multi-million project

will be executed in three phases. Phase

1 consists of a 23km long section of the

monorail. The Minister said this was a big

project, which was heavily financed by the

Bahrain government.

In September, the Cabinet approved the

master plan for the Integrated Transport

Strategy, which aimed to improve alterna-

tive modes of transport to reduce conges-

tion on the roads.

“This incorporated a 180km long pub-

lic transport network, comprising Light

Rail Transit, Monorail, Tramway and Bus

Rapid Transit.

TELECOMS SECTOR SURGES

BAHRAIN: Bahrain’s telecoms sector

continued to reap the benefits of liber-

alisation in 2008, with combined reve-

nues from the country’s telecom opera-

tors reaching BD300 mn (US$796 mn),

representing growth of 6.3 per cent

from 2007, according to data released

by the TRA recently.

Much of the growth was driven by a

rapid uptake of broadband services, with

subscriptions surging by 50 per cent to

reach 110,000 subscribers. The mobile

sector also experienced rapid growth in

2008, with the number of mobile sub-

scribers reaching 1.4 mn in December

2008, giving a mobile penetration rate

of 131 per cent.

Despite this level of saturation, the

rate of growth in the mobile sector in

2008 exceeded that of the previous year.

Indeed, in 2008 Bahrain’s mobile opera-

tors gained more than 324,000 subscrib-

ers, compared with a net increase of

about 208,000 in 2007. Bahrain’s fixed

line sector, which includes a number of

fixed wireless operators, also helped the

country buck a regional trend of declin-

ing fixed line services.

EXCHANGE SIGNS SCB DEALBAHRAIN: The Bahrain Stock

Exchange (BSE) recently announced

that it has signed a Depository

Participant (Custodian) agreement with

Standard Chartered Bank Bahrain.

The agreement allows the bank to

offer custody services to local, regional

and international investors.

“Bahrain is a key market for the

bank and we are bringing in a number

of new products and services to meet

the requirements of both existing and

potential clients,” said Mr. Jonathan

Morris, Standard Chartered Bank

Bahrain Chief Executive Officer.

“The agreement comes as a result of

interest shown by our clients in needing

custody services within the country and

follows on from similar agreements

signed by Standard Chartered with

other stock exchanges in the region.”

GCC NEWS

16 JUNE 2009

BCCI still commited to SMEs

BAHRAIN: Underpinned by its strong 70-

year history and the Kingdom’s rich trade

heritage, the newly relocated Bahrain Cham-

ber of Commerce and Industry (BCCI) has

launched a new strategy designed to aid

SMEs in realising their full potential.

“As the private sector evolves, so must our

role,” explained Mr. Othman Al Rayes, Act-

ing Chief Executive Officer in BCCI.

“Within the framework of Vision 2030,

the BCCI has established the SME Com-

mittee to better serve the private sector and

to maximise its economic contributions to

the Kingdom; while also helping small and

medium enterprises overcome any impedi-

ments to this goal,” he remarked.

“Throughout the committee’s tenure, the

BCCI will strive to support all plans, pro-

grams and policies aimed at the development

of this sector, and to ensure their successful

implementation,” Al Rayes continued.

“Furthermore, to overcome difficulties

faced by small and medium enterprises, the

Chamber will be organising frequent con-

sultative meetings and seminars to enhance

knowledge and facilitate information ex-

change. This will undoubtedly strengthen the

sector and promote innovative and success-

ful business strategies. Moreover, we will be

conducting a number of studies and research

to determine areas that require further atten-

tion,” Al Rayes added.

Among the initiatives undertaken to sup-

port SMEs is the launch of two service centers,

which are currently being under implementa-

tion, on the fifth floor of the state-of-the-art

premises “Bait Al Tijjar”. One of which will

be dedicated to training and supporting small

and medium enterprises as well as individu-

als by providing them with training programs

that improve their performance and capabili-

ties beside developing their creativity. While

the second centre will be dedicated to support

the export activities of SME’s , assist them to

promote industrial exports and provide local

companies with access to new markets, while

also increasing their competitiveness in the

face of regional and global competition.

Tharawat announces “Tharawat Sukuk Fund” BAHRAIN: Tharawat Investment House,

the latest innovative Islamic investment

house in the Kingdom of Bahrain, an-

nounced the launch of its first investment

product the “ Tharawat Sukuk Fund”. The

fund is an open-ended, Sharia’a compliant

investment fund domiciled in the Kingdom

of Bahrain investing around 70 per cent of its

assets in government and corporate Sukuk in

the GCC and MENA areas.

“The launch of Tharawat Investment Fund,

our first investment product, stems from the

fact that we are the Investment Management

partner in the 5th Global Islamic Investment

Funds & Islamic Capital Markets. The fund

aims to preserve capital and achieve high re-

turn for investors through purchasing Sukuk

in primary and secondary markets,” said Mr.

Aref Mohammed Al Alawi, Tharawat CEO.

“The fund also offers investors the choice

to receive the fund’s distributions in cash or

through issuance of additional Units. The

fund targets Accredited Investors from indi-

viduals and organisations that are looking for

investments that generate higher returns than

low and moderate risk bank deposits,”

“As part of our corporate social responsi-

bility and stemming from our belief in shar-

ing our success with all, we have decided to

offer the opportunity to the largest number

possible of potential investors. Therefore, we

set the minimum limit of investment to US$

100,000 and in increments of US$10,000

for those wishing to invest more”, explained

Mr. Al Alawi.

“The Sukuk segment is the fastest growing

segment of the Islamic finance market. The

demand for Sukuk by non-Islamic financial

institutions resulted in an increase of Islamic

securitization transactions by 700 per cent

during 2004 - 2008,” he elaborated

CISCO ANNOUNCES NEW PRODUCTS

BAHRAIN: Cisco, the market leading

ICT company, recently announced the

launch of a number of new products and

services that have been designed to help

the region’s small businesses (SMBs).

The organisation aims to improve the

efficiency and productivity of SMBs

throughout the UAE and beyond, by

enhancing the flow of communications,

future-proofing communications infra-

structure and minimising the time spent

managing technology.

The new solutions announced include

additions to the ‘Cisco Small Business

Pro’ series; a range of products and ser-

vices designed so that SMBs can build,

install and manage systems that sup-

port their evolving technology needs.

Upgrading capability was a key strategy

for the design of these new services, with

components able to be built easily upon

others. One other integral part of the

Cisco Small Business Pro Service pro-

vides SMBs with three years of afford-

able technical support, offering software

updates, next business-day hardware

replacement as necessary and providing

extended access to the Cisco Small Busi-

ness Support Center, which is now avail-

able for the region.

Mr. Aref Mohammed Al Alawi

GCC NEWS

18 JUNE 2009

SCW, Tamkeen sign agreement

BAHRAIN: Bahraini women working for

increased opportunities got a boost recently

with the signing of a key Memorandum of

Co-operation between the Supreme Council

for Women and Tamkeen (Labour Fund).

The memorandum was signed at the

Council headquarters by Ms. Lulwa Saleh

Al-Awadi, the Secretary General of the Su-

preme Council for Women and Dr. Nezar

bin Sadeq Al Baharna, the Chairman of

Tamkeen. The Secretary General welcomed

the move, emphasising that the Council

would tap into Tamkeen’s rich suite of infor-

mation, database and training and empow-

erment initiatives to give Bahraini women

the support they need.

Dr. Nezar bin Sadeq Al Baharna com-

mended the projects and programmes provided

by the Council to the Bahraini women, which

will help in increasing the women contribution

to the national economy and attracting women

to the field of private business management.

Tamkeen has a fine track record of sus-

tained empowerment of Bahraini women,

observed Dr. Al Baharna, adding “We are

delighted to work closely with the Supreme

Council for Women, which, under the lead-

ership of Her Highness Shaikha Sabikha

bint Ebrahim Al Khalifa, has put in place so

many initiatives to broaden the participation

of women in the national sphere. Tamkeen’s

efforts have been recognised by the SCW

earlier, when it was singled out for an award

for its contribution to women’s progress. We

shall continue in our efforts to live up to the

expectations of our stakeholders.”

KFH opens new headquarters BAHRAIN: Kuwait Finance House -

Bahrain (KFH-Bahrain) has relocated its

headquarters in the West Tower of the

Bahrain World Trade Centre (BWTC).

The move to the BWTC confirms the

vision of KFH-Bahrain for expanding its

banking operations.

Mr. Bader Al Mukhaizeem, KFH-

Bahrain chairman officially inaugurated

the new headquarters in the presence of

board members and senior bank officials.

“This move to our new headquarters

is the beginning of our journey to further

consolidate our team and enable us to

work more cohesively in order to address

the challenges that arise on our way for-

ward. Our business success has pushed the

demand for a new headquarters with the

required space to accommodate our grow-

ing needs,” Mr Al Mukhaizeem said.

KFH-Bahrain’s growing team, cur-

rently standing at over 250 staff, is now ac-

commodated on nine floors in the BWTC

including a full fledged branch, enhancing

the ability to continue providing clients

with a high return, professional and per-

sonalised service as well as allowing KFH-

Bahrain to add to its existing workforce.

The BWTC is the perfect location for

KFH-Bahrain to leverage on its position

as a significant player in the local and re-

gional investment markets. The BWTC is

a world-class, fully integrated development

located in the centre of Manama. Viewed

as a model for the future, the BWTC pro-

vides a highly technological infrastructure,

which suits the needs of the banking and

finance sector.

NBB LAUNCHES NEW VISA CARDBAHRAIN: NBB has recently launched

its exclusive Platinum Visa Card. The

card is packed with comprehensive fea-

tures creating a unique package, which

offers cardholders the conveniences,

ease of usage and lifestyle to which they

are accustomed.

The card offers customers a range

of benefits like free access to over 500

premium international airport lounges

through a complimentary Priority Pass

membership, travel accident insurance

up to US$250,000 and special world-

wide discounts and deals with premium

international brands.

Customers will also receive purchase

protection - an automatic short-term

insurance protection on purchases made

through their NBB Platinum card. It offers

cardholders a 24-hour emergency medical

and legal advisory service, through NBB

partners, when they travel abroad.

“We are proud to present the NBB

Platinum card in partnership with Visa.

The card has been designed to assist our

customers’ payment, travel and leisure re-

quirements,” Mr. Abdul Aziz Al Ahmed,

Personal Banking Executive Assistant

General Manager said.

“NBB has consistently been at the

helm of banking in the kingdom through

innovative and consumer-friendly prod-

ucts. We will continue to work and de-

velop products, which benefit our cus-

tomer’s long term requirements and

objectives,” he said.

DUTY FREE SALES SURGING

BAHRAIN: The Bahrain Duty Free

shop complex saw consolidated sales

fall 12 per cent in the first quarter of

the year. However, when like-for-like

adjustments are made for the stopping

of Gulf Air in-flight and cancelled

holiday charter flights, the sales

percentage reflected a modest fall of just

6 per cent on sales.

This is below total passenger

traffic growth which is in line with

the departures showing a 1 per cent

passenger drop versus last year.

Dr. Nezar bin Sadeq Al Baharna and Ms. Lulwa Saleh Al-Awadi signing the MoU

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GCC NEWS

20 JUNE 2009

OGER EYES EXPANSION IN BAHRAIN

BAHRAIN: Saudi Arabian construction

company Saudi Oger recently said it had

US$7.2 bn in building contracts under ex-

ecution and planned to expand into Bah-

rain and Oman to diversify its revenues.

Mr. Ali Kholaghassi, Vice-presi-

dent said on the sidelines of the World

Economic Forum that investors and

homebuyers were still in “sit and wait”

mode, although banks had started to

resume lending. Confidence would

return once wealth funds and private

equity return to the market, said Kho-

laghassi, who is banking on new busi-

ness resulting from Gulf governments’

plans to keep public spending expan-

sionary during the downturn.

“Today it’s a question of how desper-

ate a person wants to sell and how ea-

ger a person wants to buy,” Kholaghassi

said. “Is it the bottom?... You have a few

days of green and then decline, so there

is much confidence building needed.”

Oger, a diversified holding group

with operations in telecommunications,

utilities and real estate, is controlled by

the family of late Lebanese Prime Min-

ister Rafik Al Hariri. The company has

about 12bn UAE dirhams (US$3.27 bn)

of projects under execution in the UAE,

US$1.3 bn in Jordan and US$2.67 bn in

Saudi Arabia, he said.

Bahrain hosts UN’s workshopBAHRAIN: Within the events of Bahrain

International e-Government Forum 2009,

took place from 25 -27 May 2009, in Isa

Cultural Center – Juffair, the first specialised

workshop was held under the title “Measure-

ment and Evaluation Tool for e-government

Readiness- Meter 2” was delivered by Mr.

Richard Kerby, Senior Inter-Regional Ad-

visor, United Nations-Department of Eco-

nomic and Social Affairs (UNDESA).

“Meter 2” is a collaboration between

UNDESA and the Center for Technology

in Government, State University of New

York at Albany, to consolidate the second

version of Meter 2, with technical advisory

for the project from Microsoft. Consisting

of five main pillars, Meter 2 is considered

pivotal to the establishment of a supportive

enabling environment for e-government.

The pillars are; commitment, legislation, vi-

sion and policy, organisation, and technolo-

gy. Within each pillar there are a number of

sub-themes and related statements identify-

ing essential factors, choices and challenges

which can influence the capability of gov-

ernments to effectively harness technology

for government transformation.

The workshop was attended by a num-

ber of specialists in e-government programs

from ministries and governmental authori-

ties concerned with the United Nations e-

Government Readiness Index, in addition

to a number of participants from Singapore,

Kuwait, UAE, and KSA.

BFX appoints 2ConnectBAHRAIN: Bahrain Financial Exchange

(BFX), launching in Q1, 2010, is the first

multi-asset exchange in the Middle East

and North Africa which will be internation-

ally accessible to trade cash instruments,

derivatives, structured products and Sharia-

compliant financial instruments, has recently

announced that 2Connect will be the Ex-

change’s telecommunications service pro-

vider for voice, data and internet services.

2Connect will provide the Exchange

with key infrastructure for the provision

of a voice and data network, equipment

for the transfer of data and the supply of

IP telephony, internet connectivity and the

provision of data centre space for hosting

BFX infrastructure. 2Connect, in addition,

will also provide a suite of service support

packages for the installed infrastructure.

The infrastructure will be essential to

the Exchange in its day-to-day opera-

tions, plug and trade electronic trading

floor and international standard in-house

training academy.

Mr. Nick Bishop, Chief Operations Of-

ficer, BFX said, “We are delighted to have

2Connect as our chosen solution provider

for these services. They showed a sound

understanding of our business model and

the solutions we require.”

GULF AIR TO KEEP ORDERS

BAHRAIN: Bahrain-based Gulf Air

will keep taking delivery of planes it

has ordered from European manu-

facturer Airbus on schedule, its chief

executive said.

Mr. Bjorn Naf told the reporters

on the sidelines of an aviation

conference in Kuala Lumpur that he

saw no signs yet of a recovery in the

airline industry but he hoped for one

by the second half of 2010.

Gulf Air has 35 Airbus planes on

order as of March. It has also ordered

16 Boeing 787 Dreamliner aircraft.

Mr. Richard Kerby conducting the workshop

GCC NEWS

21JUNE 2009

SHUAA Securities adds Jordan to its network

UAE: SHUAA Capital, the GCC’s leading

financial services institution, recently an-

nounced that SHUAA Securities, its bro-

kerage arm, has expanded its regional op-

erations and network with the addition of

its Jordan subsidiary.

SHUAA Securities is the leading broker-

age service provider in the Middle East offer-

ing clients a seamless multi-market trading

experience across all the main regional equity

markets including the United Arab Emirates,

Egypt, Saudi Arabia and Jordan. SHUAA Se-

curities will consistently grow its operations

to give its clients direct access to the majority

of the GCC and MENA brokerage markets

through a single trading account, making it

the premier regional trading hub. This is in

addition to our existing institutional desk

which offers clients access to 14 exchanges

across 12 GCC and MENA markets through

nominee account relationships.

Mr. Mohammed Ali Yasin, Chief Execu-

tive, SHUAA Securities said: “Jordan is an

important addition to our brokerage net-

work and we are now able to offer institu-

tional, HNW and retail clients from across

the region direct access to this market.”

Continuing he said: “Despite the challeng-

ing market environment SHUAA Securities

has been able to significantly increase its

market share across the region and in par-

ticular in the United Arab Emirates where

we ranked as the second largest broker by

transaction value in April 2009 with 5.22

per cent market share”.

“During the same period, we were also

the most active regional member out of all

brokers in NASDAQ Dubai. This reflects a

strong and respected brand across both retail

and institutional segments and speaks clearly

of our unrivalled success and continuity in

the GCC and MENA markets in the face of

volatile economic conditions,” he added.

Kuwaiti women win their first ever parliament seatsKUWAIT: Women won four seats in Ku-

wait’s Parliament in Kuwaiti Parliament’s

election, the first to do so in the Gulf Arab

state’s history in what will be a blow to the

Islamists who have long dominated the as-

sembly. Sixteen women were among 210 can-

didates for the 50-seat assembly, whose new

composition was announced recently.

Kuwaiti women were first given the right

to vote and run for office in 2005, but failed

to win any seats in the 2006 and 2008 elec-

tions, held in this conservative Muslim coun-

try where politics is still widely seen as a

man’s domain. About 384 790 Kuwaitis, over

half of them women, were eligible to vote but

turnout was low with voters worried that the

poll would do little to end a long-running

standoff between Parliament and govern-

ment that has delayed economic reforms.

Kuwait’s ruler, Shaikh Sabah al-Ahmad

al-Sabah, called the election after dissolving

Parliament two months ago to end the cri-

sis and push through a US$5 bn economic

stimulus package. The official KUNA news

agency said liberal candidates Aseel Awadhi

and Rola Dashti came second and seventh in

the third constituency, giving them both seats

in the house. Former health minister Mas-

souma al-Mubarak, who became the first

Kuwaiti woman minister in 2005, and an-

other female candidate, Salwa al-Jassar, also

secured seats in Parliament.

“Despite the challenging market SHUAA has been able to significantly increase its market share across the region”

UAE SEEKS NEW TERMS TO REJOIN UNION

UAE: UAE’s Foreign Minister, Sheikh

Abdullah bin Zayed Al Nahayan, said

that the Gulf state would mull rejoin-

ing the Gulf monitory union if the

terms change, reports said.

Al Nahayan said that the country

would rejoin the union if the neigh-

bouring countries agree to change

some conditions and to set up the joint

central bank in the UAE.

Al Nahayan did not disclose the

specific terms of dispute, however,

he said that the second-largest Arab

economy has withdrawn from the

monitory in protest of a recent May

5th decision to base the joint central

bank in the capital of Saudi Arabia,

Riyadh instead of Abu Dhabi.

He said that up until last year, only

the UAE had been a candidate to host

the joint body that would be respon-

sible for managing and issuing Gulf

currency notes and coins.

Mr. Mohammed Ali Yasin

GCC NEWS

22 JUNE 2009

DSI expands into Telecom Market

UAE: Drake & Scull International PJSC

(DSI) is expanding its existing Infrastruc-

ture, Water and Power (IWP) operation to

encompass infrastructure solutions for the

telecommunication sector.

The addition of Telecom infrastructure

turnkey services is a natural progression for

DSI’s IWP Operation and complements the

portfolio of utilities infrastructure which the

Company has been delivering for many years.

Mr. Tawfiq Abu Soud, DSI Executive Di-

rector of IWP, says entry into the telecommu-

nication industry will diversify the business

and contribute to DSI’s recurring baseline

revenue through value propositions, dedica-

tion, quality and customer commitment.

“We have over 40-years experience in

the construction industry and the creation

of our IWP operation in the last few years

has seen an expansion in our capabilities and

market offering” he says. “Our engineering

knowledge and experience, combined with

our service capacity, geographical reach and

financial strength allow us to expand the DSI

brand into new areas.”

“We are very excited about our new ven-

ture and are looking forward to being involved

in the development of infrastructure which

again serves the ever growing population.”

To oversee DSI’s planned expansion, the

company has recruited Nick Di-Marcello as

General Manager to establish and develop the

business. Holding previous executive positions

with Telecom Operators, Equipment Vendors

and Telecom Service Companies across the

globe Di-Marcello brings a wealth of knowl-

edge and experience to the Company.

UAE’s Al Khaleej sells 100,000

tonnes sugar to PakistanUAE: The UAE’s Al Khaleej Sugar has sold

100,000 tonnes of white sugar to Pakistan

this month, an Al Khaleej company execu-

tive said recently.

“This month we sold 100,000 tonnes of

white sugar to Pakistan, this deal was with the

government,” Mr. Sabri Aweira, General Man-

ager said.Al Khaleej, one of the world’s largest

sugar refineries, last month sold 50,000 tonnes

of white sugar to the country for US$494.40 a

tonne, traders in Pakistan said.

Pakistan was expected to buy up to

600,000 metric tonnes of sugar this year as

the subcontinent ramps up imports of the

sweetener to keep down prices and avoid

dipping into stocks. Pakistan has already

imported about 175,000 tonnes, over a quar-

ter of the expected imports. Pakistan’s latest

sugar crop has fallen on the year to 3.2 mn

tonnes from 4.7 mn tonnes.

Aweira added that the company has already

signed deals with private white sugar traders

in Pakistan, but again declined to disclose the

quantities sold to them. Al Khaleej is expected

to boost sales this year by about 9 per cent, he

said. The global economic recession had little

impact on sales volumes, he added.

SNIPPETS

ETIHAD ATHEEB STARTS IN KSA

KSA: Etihad Atheeb Telecommu-

nications Company said it recently

started high-speed Internet in Saudi

Arabia’s two largest cities, officially

ending Saudi Telecom Company’s

(STC) monopoly.The firm would start

operations in Riyadh and Jeddah, it

said. Atheeb is expected to face tough

competition from STC and two other

firms that won licences last year to of-

fer fixed-line services.

DUBAI TO PAY FOR DENYING PEER VISA

UAE: The Dubai Tennis Champion-

ships announced it will pay a record

US$300,000 (Dhs1.1 mn) fine for

denying Israeli player Shahar Peer a

visa to play at the tennis tournament

this year, reports said. In addition to

the fine, the WTA Tour Board wants

Dubai organisers to arrange visas for

qualifying Israeli players eight weeks

ahead of the event next year.

UAE BANKS TO CUT INTEREST

UAE: Banks in the United Arab Emir-

ates have decided to lower interest rates

on personal loans to 7 per cent, reports

said. The central bank said recently it

had asked banks operating in the Gulf

Arab state for feedback on a proposed

change to interest rates and charges on

personal loans. The cut would affect car,

personal finance and housing loans.

306 NEW HOTELS BEING BUILT IN GCC

GCC: The Gulf countries are cur-

rently constructing 306 new hotels,

with 108,600 rooms worth in excess of

US$140 bn, according to a new study

by research house Proleads. The study,

called ‘Status of Developments in the

Middle East Leisure Industry’, states

that while 2009 will be a challenging

year for the hotel industry, occupancy

levels will pick up to 2008 levels by the

end of 2010 and then accelerate with

real growth by 2013.

“We are very excited about our new venture and are looking forward to the development of infrastructure”

Mr. Tawfiq Abu Soud

GCC NEWS

24 JUNE 2009

UAE personal loans fall 11%

UAE: Personal loans extended by United Arab

Emirates banks fell 10.9 per cent in April

compared with the end of last year, while the

gap between loans and deposits narrowed over

the same period, central bank data showed.

Outstanding personal loans at UAE

banks stood at Dhs201.7 bn (US$54.93 bn)

at the end of April, compared with Dhs226.4

bn on December 31, the central bank said in

a statement on its website.

Loans and advances of Dhs997.7 bn on

April 30 was up 0.2 per cent from the month

earlier, the data showed.

Total loans in February had fallen month-

on-month as banks become more cautious

about new lending during an economic

downturn in the country, where the emirate

of Dubai is suffering from a sharp downward

correction in real estate prices.

Deposits at UAE banks rose 4.2 in

April from December to Dh961.6 bn, the

data showed. The gap between loans and

deposits was Dhs36.1 billion - down from

Dhs71.2 bn at the end of December, the

data showed.

SONY STOPS EXPANSION

UAE: Sony Gulf has put a freeze on

expansion but does not plan to cut

jobs, its managing director said in

comments published recently, after its

parent company announced plans to

slash its workforce by 16,000 as part of

restructuring to combat mounting losses.

Sony Corp. said it lost 98.9 bn yen

(US$1 bn) in the fiscal year through

March, its first annual net loss in 14

years as consumer demand for goods

slumps amid the economic downturn.

“There will be no new staff as there

is no plan to expand,” Mr. Osamu

Miura commented. Miura said the

company would not cut jobs in the

Middle East and Africa.

“We will focus on increasing the

efficiency of our existing staff. Investment

in retailing will be on hold except for

‘scrap and build’ project,” he added.Sony

Gulf employs around 250 staff.

Gulf Capital raises US$477 mn for fund with Credit SuisseUAE: Abu Dhabi-based Gulf Capital has

raised Dhs1.75 bn for a fund launched with

Credit Suisse and aims to complete its first deal

within a month, the firm’s chief executive said.

“The plan is to exceed the Dhs2 bn mark

for the fund which will close in four to six

months,” Mr. Karim el-Solh said at a news

conference. GC Equity Partners II, which

launched late in 2008 with Credit Suisse

Alternative Investments, raised two thirds of

the fund from international investors.

The global financial crisis has slowed

economies across the Gulf Arab region, but

countries are still sitting on surplus revenues

amassed from an oil-price rally that saw crude

prices hit a high near US$150 a barrel in July.

“The speed of investment surprised us,

because two thirds of the investments came

from international investors which is indica-

tive that the region is attracting foreign direct

investment,” Solh said.

Stock markets in the Middle East and

North Africa have been hard hit by global

turmoil and valuations have dropped. Private

equity funds in the region have US$11 bn to

invest after raising a record US$6.4 bn in 2008,

the Gulf Venture Capital Association said.

The fund will focus on buying stakes in

established firms across the Gulf Arab re-

gion in sectors including oil, gas, power,

water, healthcare and education. Solh said it

was in advanced discussions to complete a

private equity deal in the healthcare sector

in a month.

ADIC PLANS S.KOREA INVESTMENTS

UAE: State-owned Abu Dhabi In-

vestment Company (ADIC) recently

said it is diversifying investments into

South Korea and Asia as it seeks to

also attract inward investment. ADIC,

Korea Development Bank and the Ko-

rea Trade Promotion Agency (Kotra)

signed an agreement to help increase

investment flows between South Korea

and the Middle East and North Africa

region, ADIC said.

The agreement lays the groundwork

for co-operation in many areas, includ-

ing cross-border mergers and acquisi-

tions, private equity, infrastructure and

portfolio equity investment.

“This is an important step, which

should lead to some exciting investment

opportunities both in South Korea and

the Mena region,” said Mr. Nazem Faw-

waz Al Kudsi, ADIC’s chief executive.

“The Middle East should not just be

regarded as a source of capital but also as

an investment destination.”

Mr. Karim el-Solh at the event

GCC NEWS

25JUNE 2009

Louvre AD construction starts

UAE: Construction works at Louvre Abu

Dhabi, the first universal museum to be built

in the Middle East, has recently started of-

ficially in the UAE.

Shaikh Mohammad Bin Zayed Al Nahyan,

Crown Prince of Abu Dhabi and Deputy

Supreme Commander of the UAE Armed

Forces, welcomed French President Nicolas

Sarkozy to a commemorative ceremony to

mark the start of the construction work.

In a presentation before dignitaries at

Emirates Palace, Shaikh Mohammad and

Sarkozy accepted a time capsule for the mu-

seum from children from UAE and France

which will be placed in the Louvre Abu

Dhabi at a future date.

Shaikh Mohammad and Sarkozy also in-

augurated a new preview experience of the

Louvre Abu Dhabi, being presented through

July 2 in Gallery One of Emirates Palace.

Titled Talking Art: Louvre Abu Dhabi,

the preview features a brief film about the

design for the Louvre Abu Dhabi by Pritzker

Prize-winning architect Jean Nouvel, an il-

lustrated talk, and a guided tour of selected

artworks specially chosen to demonstrate the

curatorial vision of the Louvre Abu Dhabi.

“Abu Dhabi’s ultimate goal in creating the

Louvre Abu Dhabi, and indeed the entire

Saadiyat Island Cultural District, is to build

a platform for deeper and more meaningful

exchange among people from our own re-

gion and from all parts of the globe,” stated

Shaikh Khalifa Bin Zayed Al Nahyan.

UAE withdraws from GCC’s monetary unionUAE: The UAE will no longer be part of

the long-awaited monetary union among

GCC States, reports the nation’s official

news agency WAM.

”The UAE extends its best wishes for

success to those GCC member states who

will join the monetary union agreement,” a

source at the foreign ministry said recently.

“The UAE’s past record of implementing

the GCC’s resolutions is strong proof of its

belief in joint GCC action.”

The announcement comes only weeks

after the council agreed on Riyadh, Saudi

Arabia as the location of the GCC’s Cen-

tral bank. The UAE expressed “reservations”

at the decision, although officials failed to

explain why. In 2004, the UAE requested to

host the Central Bank as a condition of its

participation in the region’s monetary union.

The UAE is the third nation to disrupt

monetary union talks in the region; Oman

pulled out of the union in 2006, and Kuwait

caused complications when it depegged its

currency from the US Dollar, and pegged it

to a basket currency instead. Squabbles over

the location of the central bank have also

delayed the monetary union’s progress for

months, and in March 2009, officials admit-

ted they may not meet the 2010 deadline.

”The withdrawal of the Gulf ’s second

largest economy from monetary union is a

major blow to the single currency project,”

said Mr. Simon Williams, regional econo-

mist, HSBC Middle East.

“However, we had long assumed that the

single currency would not be launched on

schedule at the start of 2010, and the UAE’s

withdrawal therefore has no meaningful

impact on our view on economic perfor-

mance or on regional monetary policy.”

”The UAE’s withdrawal from the sin-

gle currency project does not indicate any

change in its maintenance of the peg to the

US dollar, nor is it a precursor to a change in

the UAE’s currency regime,” he added.

“Our goal in creating the Louvre Abu Dhabi is to build a platform for deeper and more meaningful exchange among people”

QATAR TO SIGN PORSCHE DEAL

QATAR: Qatar will strike a deal with

Porsche by mid-June that will help the

German sports carmaker to pay down its

nine billion euro (US$12.8 bn) debt pile,

reports said recently.

Mr. Wendelin Wiedeking, Porsche

Chief Executive has already travelled to

Qatar several times and has worked out

two possible options for an agreement

with the emirate, reports said.

Qatar’s Prime Minister said that

Qatar was considering taking a stake in

debt-laden Porsche or other German car

companies after Porsche scaled down a

bid for Volkswagen.

One option is for Qatar to buy up

Porsche’s options for 24 per cent of

shares of Volkswagen via its fund Qatar

Investment Authority (QIA), flushing

cash into Porsche’s coffers and giving

Volkswagen a new major shareholder.

Another option would be for Qatar

to buy a direct stake in Porsche Hold-

ing, which controls the company’s

sports car business as well as its 51 per

cent stake in Volkswagen.

GCC NEWS

26 JUNE 2009

SINGLE CURRENCY MAY BE DELAYED

KSA: Plans by Gulf States to launch a

single currency could be delayed by three

years to 2013, reports said recently.

“It is impossible for the single currency

to be launched within six months.” the

reports said quoting a senior Gulf official.

“I expect the new deadline to be

2013,” the official said.

Last month, the UAE became the

second Gulf nation after Oman to aban-

don the single currency project.

Earlier this year, the GCC abandoned

an initial 2010 deadline for issuing the

common notes and coins, saying a joint

monetary council would determine a

new timetable for issuance.

The UAE left the project in protest

against the decision to base the Gulf

central bank in Riyadh.

Saudi Arabia has said it and other

GCC members will proceed with the

plan and will sign a monetary union ac-

cord. In 2001, the six members of the

GCC had agreed to set up a monetary

union like that of the European Union.

RUBY TUESDAY TO OPEN IN ADUAE: Ruby Tuesday, Inc. says it has

secured rights to open restaurants in

Abu Dhabi, expanding its growth in

the Middle East.

The restaurant chain said its

franchisee, Bin Hendi Hospitality,

plans to open six new restaurants in

Abu Dhabi, the capital of the United

Arab Emirates. Bin Hendi now has

a total of 18 Ruby Tuesdays slated

for development in the United Arab

Emirates. The company said the

Persian Gulf region is one of the fastest

growing areas for casual dining brands.

The Abu Dhabi restaurants will

be developed and opened over the

coming five years and will feature

menu choices, service standards and

decor that are consistent with the Ruby

Tuesday brand in the United States.

Ruby Tuesday shares gained 26 cents,

or 3.8 percent, to close at $7.20.

15% of PR revenues come from SMBs in GCC region UAE: GCC Small and medium businesses

(SMBs) need to look at PR more seriously,

rather than merely as a tick box in their

marketing strategies, according to a regional

marketing communications expert.

Mr. Firas Sleem, Director, UAE Office,

Virtue PR & Marketing Communications,

speaking at the 1st International Consul-

tants Conference in Dubai, revealed that PR

revenues from SMBs in the Gulf was just 15

per cent, which is abysmally low considering

that SMBs control more than 80 per cent of

the total projects.

“Most SMBs in the Gulf are still not

linking PR to their long-term business goals.

Though these companies form the backbone

of the GCC businesses, they are a long way

from effectively leveraging PR for boosting

their marketing strategies”.

“In the Middle East, there is no clear defi-

nition for SMBs. Some classify them on head-

count, others on turnover but still we don’t

know the limits of either criteria. European

Union has started to standardize the concept.

Its current definition categorises companies

with fewer than 50 employees as “small”, and

those with fewer than 250 as “medium”. We

in the Middle East have to have our own cri-

teria for SMBs,” Sleem added.

According to the Planning and Economy

Department in Abu Dhabi, SMBs consti-

tute 94 percent of the total projects in UAE,

followed by 92 per cent in Bahrain, Oman

and Qatar, 78 per cent in Kuwait and 75 per

cent in KSA.

“SMBs in the region don’t seem to dif-

ferentiate between advertising and PR. As

businesses grow, PR expenditure is gradually

growing, but the general trend among SMBs

is to club PR and advertising, instead of look-

ing at them as two separate marketing disci-

plines,” he added.

The conference concluded that SMBs

were not as seriously affected by the crisis as

the large enterprises because they have great-

er flexibility in taking prompt decisions.

“Most SMBs in the Gulf countries are still not linking PR to their long-term business goals”

Qatar offers interest-free loansQATAR: Qatari government employees

across certain categories can now avail of in-

terest free loans, following the ratification of

a cabinet decision, according to a report.

Government employees in the LNG

exporter who have successfully completed

probation periods can now access interest-

free loans to buy cars, manage household

expenses and fund their as well as their de-

pendents’ marriage.

Qatar’s Emir Shaikh Hamad bin Khalifa

Al Thani recently ratified a Cabinet decision

(No. 31 of 2009) identifying types and value

of and regulations covering loans offered to

government employees, it said. As per the

decision, eligible employees will be able to

access loans up to five times of their basic sal-

ary to buy car and meet household expenses.

Mr. Firas Sleem

Shaikh Hamad bin Khalifa Al Thani

SOCIAL RESPONSIBILITY

28 JUNE 2009

Drugs addiction is the spectre that enters

homes and destroys the happiness of any

family. It is the faster and the shorter way

to death. Drug addiction is one of the most

serious social problems of our time around

the world and there are many reasons that

push an individual towards the addiction.

The most important ones are being distant

from religion, bad companionship, and over-

spoiling the children or neglecting them

without keeping close eyes on them.

Here are some of the signs to spot in an indi-vidual who might be addicted to drugs: 1- The person wants to be alone more than

usual. He or she spends inordinate amounts

of time isolated from the rest of the fam-

ily. Excessive need for privacy; keeps door

locked or closed, won’t let people in.

2- Drop in school or work performance;

skips or is late to school or work.

3- Receiving telephone calls at odd hours

and using some strange and suspicious vo-

cabulary.

4- Neglect of religious duties like prayers.

5- Increase or decrease in appetite; changes

in eating habits, unexplained weight loss or

gain.

6- Cycles of excessive sleep.

7- Violent temper or bizarre behaviour.

8- Unexplained need for money; can’t ex-

plain where money goes; stealing.

9- Abnormally slow movements, speech or

reaction time, confusion and disorientation.

10- For smoked drugs, a persistent cough or

bronchitis, leading to coughing up excessive

mucus or blood.

11- Suspected drug paraphernalia such as

unexplained pipes, roach clips or syringes.

12- Needle marks or bruises on lower arm,

legs or bottom of feet.

13- Smell of substance on breath, body or

clothes.

If you find that there a drug addict in your family, try to be calm take the below precau-tions:1- When dealing with a drug addict, we

should act in a very wise and tranquil way

away from cruelty, violence or intimidation.

2- We should be very secretive.

3- Choose the appropriate time to speak to

the addict and give him the chance to ex-

press his feeling, then start advising him.

4- A lot of drug addicts lose their battle

against despair, so try your best to renew

their hopes in life.

5- Search for the reasons behind the addic-

tion wither social or psychological and try

to tackle them.

6- Never give money to the drug addict.

7- The family members should understand

the nature of the drug-addiction treatment

and how to deal with the addict.

8- Ex drug-addicts can be very helpful in the

treatment.

9- Reward the patient and encourage him

whenever he/she achieves any improve-

ment.

10- When treated, the patient should be

welcomed and accepted by all of his family.

11- It’s very important to follow up and keep

an aye on the patient to spot the emergence

of any negative signs or indicators that show

any relapse.

In conclusion, I would like call on the

international community to appeal to every

State that is not a member of the Internation-

al Drug Control Conventions to ask them to

implement its provisions, and to provide a fi-

nancial assistance to those countries that are

countries suffering from problems related to

drug trafficking across their borders.

I would also like to appeal to all minis-

tries, governmental and private bodies to

adopt a vision of an comprehensive and inte-

grated strategy to combat drug addiction and

to coordinate to produce films and programs

to address this phenomenon on television,

radio and Internet sites. I also wound like to

appeal to the clerks to spread the awareness

of the dangers of drugs among people.

I can not help but pay tribute to and

thank all the police officers and workers in

the Ministry of the Interior for their great

effort to address and prevent the entry of

drugs into our beloved kingdom. I would

also like to express my gratitude to the

Anonymous Addicts Community for their

great efforts in helping the addicts.

Contact: [email protected]

A SOCIETAL PERILMohammed Sadiq gives quick tips on how to identify drug addicts and measures to be taken thereof.

DRUGS ADDICTION

YOUTH

30 JUNE 2009

The recently held Youth Round Table (YRT) proved to be a platform whereby various issues were discussed to enhance careers of young Bahrainis.

Young Arab Leaders (YAL) Bahrain in

association with AIESEC Bahrain, hosted

their third Youth Round Table (YRT) on

31st May at the Isa Cultural Centre in Juffair.

This year’s event was sponsored by Tamkeen.

YRT 2009 committee was headed by

Sheikha Hessa bint Khalifa Al Khalifa. The

committee members included Mr. Raed Al

Samaheeji Managing Director, Universal

Trading, Mr. Amin Al-Arrayed, General

Manager - First Bahrain, Mr. Ashraf Bseisu,

Deputy Chief Executive Officer – Solidarity

and Mr. Tariq Al Saffar, Managing Direc-

tor-Fortune Promoseven.

“As Young Arab Leaders, we believe in

creating opportunities for young people

to develop. We believe in guidance and

mentorship as strong tools of development

which can foster better future leaders. We

have joined efforts once again with AIESEC

Bahrain to convey this message. Aiesec Bah-

rain aims to provide young people with an

opportunity to begin their career by taking

their first step through Internship organised

through the Aiesec International network,”

Sheikha Hessa bint Khalifa Al Khalifa said.

She also thanked the partners and the

participating companies of their continu-

ing support to the organisation and further

said: “Aiesec believes in giving young people

the opportunity to experience different work

environments that will add value to their

potential. It is important for companies in

Bahrain to help young people start their

own career and benefit from the energy and

talent of today’s youth in order to increase

our global presence. Members of the Young

Arab Leaders-Bahrain Chapter, have com-

mitted their time and effort and resources in

seeking new ways to engage young Bahrainis

in various programs. The Bahrain chapter is

committed to upholding the eight strategic

objectives outlined by the young Arab Lead-

ers organization: Dialogue Exchange, Entre-

preneurship, Education, Leadership, Youth

Networking, Spreading Modern leadership

Values and Fostering Development of future

Arab leaders, Contributing to the develop-

ment of the region through a set of result

driven initiatives around the most pressing

issues facing the world, and finally to help

bridge the awareness gap between the region

and the rest of the world.”

The underlying aim of the event was to

address graduate employment and recruit-

ment issues through a dialogue among

graduating student and employers based on

awareness and understanding of each other’s

position in today’s market. This year, the

Round Table will weigh on the diverse ca-

reer opportunities available to the Bahraini

youth in light of the current economic cli-

mate. YRT 2009 focussed on the Informa-

tion Communications Technology (ICT),

Cultural and Hospitality Industry.

Around 150 Bahraini graduates en-

gaged in a dialogue with experts from the

ICT and Hospitality industry. The Round-

table provided them with a unique op-

portunity to share experiences, ideas and

aspirations along with identifying compe-

tences that companies look for in the job

market. The panelists included Mr. Aqeel

Al Rayis - Group CEO of Gulf Hotel, Dr.

Britta Rudolph - Counsellor for Heritage

& UNESCO Affairs, Mr. Mohammed Taib

– Director of Technical & Operations at

Telecommunications Regulatory Authority

and Mr. Abdulellah Ebrahim Al-Qassimi,

the CEO of Tamkeen.

Launched in 2007 by YAL Bahrain, the

YRT has since then witnessed a successful

two years run. Young people are a crucial seg-

ment of society; they are the basis for future

development. It has been clearly stressed that

youth are not only the leaders of tomorrow,

but the partners of today. Youth have some

responsibility towards their country.

YRT EXPLORES DIVERSECAREER OPTIONS

BAHRAIN

Cafe

SPECIAL REPORT

32 JUNE 2009

BIG scans various reports and finds out how the GCC region can beat recession on various fronts provided countries follow strict discipline and chose not be greedy.

For the GCC, 2009 will be a year of con-

traction. The combined size of GCC econo-

mies will increase from US$822.2 bn in 2007

to about US$1.04tn in 2008 and it is likely to

fall to about US$923.6bn in 2009. It is esti-

mated that in nominal terms, GCC econo-

mies are likely to grow from about 11.3 per

cent in 2007 to 26.4 per cent in 2008. The

real growth is estimated to reach about 5.2

per cent in 2008 while in 2009, the growth

rate is likely to decline to about 2.4 per cent.

Internal factors that include a credit

crunch, lower growth in public spending,

and lower growth in rental prices will lower

inflation rates in 2009. Besides, imported

inflation will reduce dramatically because of

lower commodities prices and expected de-

flation in the developed countries. All in all,

these factors should decrease inflation rates.

In 2009, M&As will be driven by GCC

governments initiatives to stabilise the real

estate and equity markets and their efforts

to boost market conditions. Furthermore,

the relatively low valuations will encourage

SWFs to acquire stakes in local as well as

international companies. Similarly, low valu-

ations and the pressure to maintain com-

petitive cost base encourage companies to

expand their business by vertical as well as

horizontal mergers.

Earnings growth in 2009 is not expected

to stand out as being exceptional, standing in

the vicinity of 6 - 7 per centYoY for the GCC.

Albeit, unlike 2008, the earnings in 2009 will

not suffer from the substantial investment

losses borne by the companies (banks, invest-

ment banks in particular and other portfolio-

running companies in general), aggregate

earnings and aggregate earnings growth will

nevertheless be weighed down.

The GCC markets have started on the

worst possible note as investors are wary

over the result of 4Q2008 and 1Q2009,

which is reasonably understandable. Assum-

ing that the multiples maintain status quo

(being conservative), if the markets just fol-

low the earnings growth, we will expect a

modest gain in the market returns in 2009.

We understand that the probability of such

an occurrence in the 2H2009 exceeds by far

the probability of the same happening in

1H2009. Moreover, the magnitude of the

rally will be highly dependant on non-fun-

damental factors such as return of foreign

investors and on the investor sentiment and

confidence as well.

GCC ECONOMIC OUTLOOKAfter witnessing a super-spike period during

mid-2008 that reached a record high of more

than US$140 per barrel, oil prices fell sharply

towards the end of the year to trade at less

by 2009-endHOPEFUL RECOVERY

SPECIAL REPORT

33JUNE 2009

FROM SUPERNORMAL GROWTH TO CONTRACTIONThe combined size of GCC economies will

increase from US$822.2 bn in 2007 to about

US$1.04 trn and it is likely to fall to about

US$923.6 bn in 2009. It is estimated that

in nominal terms, GCC economies are likely

to grow from about 11.3 per cent in 2007

to 26.4 per cent in 2008. However, in 2009

the combined nominal GDP of GCC coun-

tries is likely to witness contraction of about

11.1 per cent. The real growth is estimated

to reach about 5.2 per cent in 2008 while in

2009, the growth rate is likely to decline to

about 2.4 per cent.

The region’s largest economy, Saudi Ara-

bia is likely to report a nominal growth of

22.5 per cent and a real growth of 4.2 per

cent in 2008. However, in 2009 the econo-

my is likely to decelerate by about 12.2 per

cent in nominal terms and in real terms it

is likely to grow by 1.4 per cent. This would

be the slowest growth rate for Saudi Arabia

last several years.

than US$35 per barrel. This turnaround re-

sulted in the collapse of five-years of bull-run

in oil prices, which climbed from US$29 a

barrel in early 2003 to a peak of US$147 a

barrel in July 2008. The collapse of oil prices

in the second half of 2008 was the result of a

growing realization that the global economy

will face a sharp slowdown in 2009, leading

to a huge drop in demand for oil.

Oil prices averaged about US$94 per bar-

rel for 2008 and it is forecasted that average

prices are likely to reach at about US$60 per

barrel for the year 2009. Sharp economic

downturns in advanced economies have

started spreading their effects on Asian

economies which were previously considered

recession-proof. On the back of this, world

oil demand is also likely to fall in 2009. At

the same time much depends on the growth

rates of developing countries like China and

India, but these countries have also started

showing signs of a slowdown.

Therefore, oil prices to remain in our pre-

dicted range for 2009 will also require timely

intervention by oil producing countries.

Such a sharp fall in oil prices along with

production cuts by OPEC will also have a

significant impact on economic growth in

the year 2009. The cumulative cuts imposed

by OPEC in 2008 was 4.2 mn barrels a day.

At the same time, further cuts are not ruled

out if oil prices sink further in 2009.

On the back of this, oil revenues, capital

investments and current account surpluses

in the GCC region are likely to witness a

sharp deceleration in 2009, which will have

a significant impact on the real economic

growth of these countries.

Contribution to total GCC earnings

Source : Global Research

GCC Nominal GDP


“Oil revenues, capital investments and current

account surpluses in the GCC region are

likely to witness a sharp deceleration in 2009”

SPECIAL REPORT

34 JUNE 2009

FDI Flow in GCC (in US$bn)

Source: World Investment Report

GCC projects by Sector

Source: MEED Projects, *As of July 2008

Among the GCC peers, Qatar is likely to

remain insulated though the growth rates are

estimated to slowdown in 2009. It is expect-

ed that the nominal GDP of Qatar is likely

to grow by 33.8 per cent in 2008 and in 2009

the growth rate is likely to turn negative of

about 0.8 per cent. The real GDP growth of

Qatar is estimated at about 10.4 per cent and

9.4 per cent in 2008 and 2009, respectively.

Among the GCC countries, Saudi will

be the most affected in real terms in 2009

with growth rates expected to decline to

1.4 per cent. Qatar will be less impacted,

as compared to its GCC peers, with its real

growth expected to decline from 10.4 per

cent in 2008 to 9.4 per cent in 2009. In case

of UAE, real growth rate is likely to reach

5.5 per cent in 2008 and the growth rate is

expected to shrink to 2 per cent in 2009.

The real GDP growth of Kuwait, Oman

and Bahrain is set to reach 5 per cent, 6.4

per cent and 6 per cent respectively in 2008

while in 2009, the real growth of these coun-

tries is likely to decelerate to 2.5 per cent, 3.5

per cent and 3 per cent respectively.

THE BYGONE ERAStrong crude prices during 2008 are expect-

ed to widen fiscal surplus of GCC econo-

mies to a record high, which would be its

highest ever fiscal surplus. The actual rev-

enues could double the what budgeted for

as crude oil prices averaged about US$90-

plus for 2008 while budgeted revenues are

based on average oil prices of about US$40-

50. We expect that combined fiscal surplus

of GCC countries to reach 29.4 per cent of

their GDP for 2008. The fiscal surplus is

expected to reach about US$305 bn. How-

ever, in 2009, declining oil prices are likely

to have a significant impact on hydrocarbon

revenues of GCC countries while the same

time government expenditure should remain

expansionary for further economic growth.

Therefore, we estimate that in 2009, fiscal

balance is likely to decline and reach about

10.3 per cent of their combined GDP.

The loss of more than US$100 in oil pric-

es in the second half of 2008 is expected to

have a strong impact on the region’s balance

of payments in 2009. The oil exporters’ cur-

rent account surplus as a per cent of GDP

“Qatar will be less impacted, as compared to its GCC peers, with its real growth expected to decline from 10.4 per cent in

2008 to 9.4 per cent in 2009”

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SPECIAL REPORT

36 JUNE 2009

is expected to moderate from 27.6 per cent,

estimated for 2008, to reach about 18.1 per

cent in 2009. It is based on the expectation

that oil prices are likely to average out at

about US$60 per barrel in 2009, if the prices

remain in the sub-$50 range than it could

have an adverse effects on the region’s trade

balance, however, chances of oil to trade in

that range are less likely.

Lower oil prices and reduced oil pro-

duction, coupled with a falling demand

for goods and services will translate into a

crash in the region’s export income, trade

surplus and overall current account surplus.

This narrow fiscal as well as trade surplus

will definitely have some impact on the

liquidity position of these countries. On

the back of this, some of the fresh invest-

ment projects are not likely to get material-

ized. At the same time projects which are

there in the pipeline could also get delayed.

However, accumulated surpluses over the

last several years will provide a cushion to

the public spending of GCC economies.

Therefore, liquidity management could be

the key to fund future projects.

INFLATIONARY PRESSURES TO COOLOFFIn the last few months, the world witnessed

a tremendous decline not only in equi-

ties, but also in commodities, as the global

economies witness a recession that is turn-

ing out the worst in decades. Falling prices

across international economies may lead to

excessive deflation that could exacerbate the

global economic condition even further. De-

flation was not in the mind of the investment

world in July of the year 2008 when every-

one’s concern was inflation led by exception-

ally unprecedented high oil prices. The GCC

countries were no different than the rest of

the world. In the beginning of the year, infla-

tion was a major concern, but rising prices

will not be an issue in the new year of 2009.

External and internal factors that had

been fuelling inflation in the GCC coun-

tries are turning around. In terms of internal

factors, three major factors are putting the

brakes on inflation. First, the global credit

crunch translated into a local credit crunch.

This credit freeze in the GCC was due to the

foreign investors withdrawing their cash out

of the local markets.

In addition, foreign borrowing was fro-

zen, which required some firms to find al-

ternative replacements. Locally, the invest-

ment sector was the most to be hurt from

the frozen foreign credit market in which

the banking sector was not able to cover the

huge demand for credit resulting from the

pull-out of foreign lending. Besides, banks

were not ready to take the risk of lending,

even though governments and central banks

took wild measures, including pumping li-

quidity into the system, and loosing-up the

lending requirements. The lack of liquidity is

expected to continue into most of 2009.

Apart from the credit crunch, there is

a sharp decline in oil prices. Even though

OPEC had been cutting production, the

free-fall of oil prices did not stop. Oil price

reached its four year low after breaking an

all-time record in July of 2008, a price tag of

US$147 per barrel. Oil prices are not expect-

ed to be high in 2009. As a consequence, oil

producing countries, especially in the GCC,

will experience a fall in revenues which will

slow their spending capacities. Lower growth

in public spending would decrease growth in

business activities, as public spending in the

GCC plays a big role in the economy. All in

all, most countries will still be able to main-

tain their level of spending in the short term,

even though they may record a budget defi-

cit, thanks to surpluses accumulated during

the previous years. However, any expansion

plans might be put on hold.

Rental prices are also expected to cool

down in the next year. Weighing heavily on

the price indices for all GCC countries, rent-

al increases will slow down in 2009. Prices

had been skyrocketing in the past few years,

which had been a major cause for higher

consumer prices. For example, apartment

rentals increased by 25 per cent during 2005-

2006, and by 18 per cent during 2006-2007

in Dubai, according to Asteco. However,

rentals prices will see a big drop in 2009 be-

cause supply next year will outpace demand.

According to Colliers, supply for commer-

cial space will be more than triple, reaching

5.6mn sqm in Dubai in the coming year.

External factor is mostly represented

by imported inflation, which is expected

to slow down for two reasons. First, Com-

modities ranging from energy, agricultural,

livestock and metals are declining at a rapid

pace. CRB Reuters, a broad commodity in-

dex, reached its peak in July, recording 481

points. Afterwards, the index declined by

more than 34 per cent at the end of 2008,

reaching 314.7 points.

Inflation Rates in the GCC


SPECIAL REPORT

37JUNE 2009

GCC PROJECTSOil revenues in the past five years has fa-

cilitated the GCC accumulating more than

US$1.5tn. The countries used a fraction of

the revenues to spend on projects in order

to develop and diversify the economy. GCC

projects have reached US$2.54tn as of Jan.

05, 2009, a Y-o-Y increase of 57.5 per cent

from US$1.61tn. Most projects are invested

in Real Estate, Oil and Gas, and Power.

Pre-crisis on Sept.1, projects planned or

under way totalled US$2.16tn, Saudi Arabia

and the UAE are the biggest project markets

in GCC, their investments make up 72.6

per cent of total projects in the GCC. De-

spite the fact that being extremely affected

by the financial crisis through their capi-

tal markets and oil prices since Sept.2008,

their project portfolios increased 9.01 per

cent in Saudi Arabia and 27.5 per cent in

the UAE. In the GCC the value of projects

increased 17.1 per cent during the same pe-

riod, of the GCC countries Kuwait posted

a 2.4 per cent growth as opposed to Bah-

rain which increased 36.5 per cent during

Sept.1-Dec.15.

Due to the global crunch many projects

have been delayed in the GCC mostly from

real estate and oil and gas sector which make

up 81.1 per cent of total projects in the GCC.

According to ProLeads, a research firm,

there are 150 projects currently on hold, 88

are in UAE, 54 in Saudi Arabia and 15 in

Kuwait. Reasons are attributed to increasing

building materials cost, decreased liquidity

and slowdown in the world economy. Ma-

jor delayed projects include King Abdullah

Economic City in Saudi Arabia, Asia Asia

Hotel in Dubai, Palm Deira in Dubai, Jaber

Al-Ahmad Hospital in Kuwait, Qatar Pet-

rochemical Complex, and Aramco Dam-

mam oil field.

2009 could be a year of delays and de-

ferred projects, mostly for the private sec-

tor because of the lack of funding. For the

month of December the OPEC crude price

has averaged US$39.6/bl, while the break-

even oil prices of the GCC is US$47/bl.

If the oil averages at US$50/bl then GCC

countries will post a very low budget surplus

or will face budget deficits which will put a

short term pressure on planning or on the

execution of projects. Recently,

Saudi Arabia announced the largest bud-

get (2009) in its history showing that spend-

ing by GCC governments will still be strong

and governments will be the leading entity

to announce new mega projects.

The private sector could take a hit in

2009 due to the lack of funding and tight

liquidity. Even though GCC policy actions

are easing interest rates, still private entities

are announcing new lay-offs and delayed

projects. The major delays could be for the

short term because the efforts made by cen-

tral banks will provide more liquidity in the

system and projects developers will continue

their stopped track.

Prospects for private sector projects in

2009 are cloudy, construction sector unem-

ployment could increase because of lay-offs,

property prices could go down because of de-

creased demand and less liquidity will enter

the sector because of investors backing out,

thus reducing the pace of the projects activ-

ity. The more the delays, the more it will be

costly on the developers. Companies of big

real estate companies in GCC have started to

lay-off workers, delay future expansions, and

their stock prices have reached new all-time

low including Emmar, Nakheel, ArabTec,

Mazaya and Dar-AlArkan. But delayed proj-

ects also have shifted the demand to newly

completed properties, especially in UAE.

Other sectors have witnessed a minimal

hit, including petrochemicals. Kuwait has

cancelled a US$17.4 bn joint venture with

Dow-Chemical. Abu-Dhabi also delayed

the Integrated Gas Development due to

technical problems. This project will transfer

more than 700mn cubic feet. PertoRabigh

of Saudi Arabia is delaying a polypropylene

plant that could produce 700,000t/y to the

end of 1Q2009. Oil prices which took a hit

last year, could affect the fate of the oil proj-

ects. OPEC countries have reduced output

to new historic levels, which shift their focus

from building to delaying and waiting for

costs to decrease. In Saudi Arabia, Aramco

has delayed oil projects with France’s Total

and US Conoco Phillips. Also, Kuwait has a

risk of cancelling Al-Zour fourth refinery.

On the other hand the power sector is

still announcing new projects, Saudi Elec-

tricity is signing a new contract to power

western Mecca, it also plans to award con-

tracts in the next seven years amounting to

SR122 bn. According to MEED, Rabigh

“General trend in policy changes over the past few years suggests an easing of FDI restrictions and a more welcoming climate for foreign investment,

especially in non-oil industries”

SPECIAL REPORT

38 JUNE 2009

Real GDP Growth Rates of GCC countries

Source: World Bank and Global Research

and Ras-Alzour projects in Saudi Arabia and

Salalah project in Oman are scheduled to be

awarded by early 2009. In Dubai, costs have

affected the development of power stations.

New delays has been made on power proj-

ects in Dubai due to rising cost. New real es-

tate projects had put pressure on the Dubai

Electricity and Water Authority (Dewa) to

keep up with the pace of demanded power.

But today a slowdown will give Dewa more

time to develop projects, where its estimated

that Dubai will need 15,000MW in 2015

from 5,000MW in 2007. In Qatar, General

Electricity and Water Corporation (Kah-

ramaa) is considering to expand its power

network that will cost US$18bn in the next

seven years. It is planning to build 29 high-

voltage substations. By 2015 electricity de-

mand will reach 10,000MW, thus we can see

an increase in power projects activity.

Projects in the GCC continue to perform

well and strongly, where in the 1st week of

January, projects have increased by 57.8 per

cent in a year, which indicates a remarkable

growth in one year.

According to MEED, GCC projects have

reached US$2.54bn as of January 5, 2009. In

the short term, projects markets in the GCC

will take a slight hit due to the delays, but

in the long term things should be bright

because the GCC is built on strong macro-

economic factors that will rehabilitate any

projects problems. Moreover, government

backed projects will continue to progress in

2009 as well.

FOREIGN DIRECT INVESTMENTS FDIFDI Inflows in GCC continued to grow and

rose by 20 per cent in 2007 to US$43.0bn

as per the UNCTAD report with much of

the FDI inflows in 2007 concentrated in

away from oil and gas production. Although

the United States has attracted the largest

share of investments from GCC countries, a

growing number of GCC investors are now

moving to Asia, particularly China and In-

dia, to diversify their investment portfolios.

General trend in policy changes over

the past few years suggests an easing of

FDI restrictions and a more welcoming

climate for foreign investment, especially

in non-oil industries. In Saudi Arabia, the

Supreme Economic Council shortened

the list of areas that are closed to FDI in

March 2007. The United Arab Emirates

announced in March 2008 a new company

law to allow100 per cent foreign ownership

of companies in some sectors (compared to

the existing 49 per cent limit) outside the

free trade zone.

TELECOM & INFRASTRUCTURE It is expected that the collective GCC bot-

tom-line to exhibit a growth of 6 - 7 per

centYoY in 2009 with the banking sector

exhibiting the highest contribution as has

been the case previously. The banking sector,

as a whole, may no longer be termed as the

regional favourite in 2009.

Despite the healthy growth of approxi-

mately 9 per cent YoY, its earnings growth

will be overshadowed by the telecommuni-

cations and the infrastructure sectors. The

infrastructure sector, may very well materia-

lise as an emerging sector in terms of earn-

ings potential in the likes of 34 per cent YoY

in 2009, however with limited companies to

invest in, under this sector, investments are

likely to spill-over into the telecommunica-

tion and then to the banking sector.

WHEN TO EXPECT THE SOEXPECTED?The first half of 2009 seems too early a time

for GCC markets to recover from the tur-

moil they went through starting in the last

quarter of 2008, which has continued into

the present year. With muted full year earn-

ings lined up, starting end of January and

lasting till mid-March, expectations and ac-

tual realization of such results will naturally

keep the markets from performing positive-

ly. The first quarter can therefore simply be

anticipated to pass by without any major up-

ward movement in the index. Investors are

anticipated to remain cautious thereafter till

the declaration of the 1Q2009 results and

the equity markets then should see a con-

solidation phase which may last till the end

of the 1H2009.

two countries: Saudi Arabia and the UAE

together accounting for 87.5 per cent of

the total FDI in the region. Qatar also ex-

perienced a significant rise in inflows in

2007 (more than seven times higher than

in 2006). The rise in FDI investments is

mainly on account of a growing number of

energy and construction projects, as well as

a notable improvement in the business en-

vironment in 2007. Also, high oil prices in

the past few years have continued to boost

economic growth rates in GCC which en-

couraged governments to spend heavily on

infrastructure, particularly for revamping

water and energy industries and services, of-

ten in collaboration with private investors,

including foreign ones.

FDI outflows from the region in 2007

also witnessed similar trends and increased

by 90 per cent to reach US$41.5bn, nearly

four times the figure of 2005 with Kuwait,

Saudi Arabia, UAE and Qatar accounting

for almost 95 per cent of the total outflow.

Acquisition of General Electric Co.’s GE

Plastics business by Saudi Basic Industries

Corp., for US$11.6bn in May 2007 account-

ed for 28 per cent of the flow. However, the

largest cross-border acquirers were from the

United Arab Emirates, followed by firms

from Saudi Arabia and Qatar. SWFs based

in the sub region have also accounted for a

major proportion of FDI. Intraregional FDI

in Greenfield projects was also significant,

along with investments in developing coun-

tries, especially China, India and Malaysia.

The GCC countries have built up a

substantial windfall from oil exports since

2002 when global oil prices started to rise.

This has enabled them to accumulate a huge

stock of net foreign assets, estimated at

around US$1.8 trn as per IIF estimates, and

to implement their diversification strategy

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College l i festyle magazine for youth

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#1 Real Estatemagazine

COVER STORY

40 JUNE 2009

DIYAR’SI am inspired by

VISION

With a total investment valued at BD1.2 bn, Diyar Al Muharraq is Bahrain’s largest masterplanned urban development project till date. The project offers a range of housing options and quality lifestyle for all strata of society. It is one-of-a-kind development with a dedicated focus on providing reasonably priced housing and will open up exciting opportunities for a group of society previously excluded from real estate ownership. Diyar is being built as an extension of the island of Muharraq with boundaries extending over an area of 12 square kilometres and potential for around 30,000 dwellings which will include a mix of social housing, apartments, townhouses and villas in a wide range of plot sizes and prices.

- Aaref Hejres

COVER STORY

41JUNE 2009

COVER STORY

42 JUNE 2009

BIG: As the CEO of Diyar Al Muharraq, how have you lent your personal knowledge and experience to spearhead the project?Aaref Hejres: As the CEO of one of the largest

mixed-use master-planned developments in

the Kingdom of Bahrain, the most important

goal for me from the very start has been to

steer the project successfully forward.

Our entire team at Diyar Al Muharraq has

immensely contributed towards achieving

every aspect of the landmark development’s

vision, from the initial inception and master

planning through the design and delivery

phase, including the branding of this unique

venture. On a personal level, I continue to

use my past experience, knowledge and

expertise in strategy to add further value to

the development of Diyar Al Muharraq.

This project is also my personal dream

come true. As an engineer myself, I am

honoured to have had inputs into the

masterplan of the development, and the

pleasure that comes from seeing your own

vision come to life, as a benefit for the

people, is indescribable.

All in all, I am inspired by the vision

of the project and what it will ultimately

mean for the Kingdom, and will continue

to strive for high standards, environmental

consideration and community focus for

Diyar Al Muharraq in the future.

BIG: What kind of initiatives have you taken to make Diyar a truly international project? How are you motivating your team?

A.H: Diyar Al Muharraq will be a blend

of the traditional and modern. The fully-

contained city is being built to extremely

high specifications, and will feature

contemporary homes and communities

which reflect traditional and cultural tastes

and requirements. It will draw on Arabic

culture and traditions, blending them with

contemporary international design and

lifestyle requirements.

During the concept stage, we did

extensive research and traveled around the

globe to incorporate the best features from

targeted projects, and then incorporated our

own ideas which were gathered from market

research in Bahrain to make it more suitable

for the local market.

To start with, we invested a lot of time

to develop a detailed masterplan, which was

revised several times in consultation with

internationally renowned architects and

planners until we reached a version, which

satisfied all of the lofty criteria necessary to

achieve our goals. To match the international

standards, we partnered with some of the

“As an engineer myself, I am honoured to have had inputs into the masterplan of the development, and the pleasure that comes from seeing your own

vision come to life”

At a time when the real estate market worldwide is hit by recession, the Kingdom of Bahrain’s prestigious Diyar al Muharraq is going strong and is on schedule.

BIG talks to Mr. Aaref Hejres, Chief Executive Officer, Diyar Al Muharraq on the development of the project and gets his reflections on numerous issues

including environment sustainability.

COVER STORY

43JUNE 2009

world’s leading technology providers to deliver

the best quality development in the region.

Diyar is the first development with a

dedicated focus on providing a variety of

housing options that encompass all strata of

society and open up new and exciting real

estate ownership opportunities. For the first

time, the Kingdom of Bahrain will have a

community where visitors and residents will

be able to freely access the many beachfront

and landscaped recreation areas and marinas,

as well as all the elements one expects

from such a community including schools,

medical facilities, and commercial outlets

like shopping malls, banks, hotels and a local

services infrastructure.

BIG: Considering the present market scenario, how do you view the conditions for real estate and construction industry? How does it stand to affect Diyar? What measures are you taking to control it?A.H: The crisis has surely affected the

entire Gulf region, with the real estate and

construction sector one the hardest hit.

However, Bahrain’s real estate market is

still strong largely due to the fact that we have

a diversified economy, plus real demand in

this country for housing, and the calculated

methodology most developers in Bahrain

follow when laying out their plans has a lot

to do with that. Also, the Kingdom has been

mostly successful in avoiding speculative

activity and its projects are financed by local

and regional investors.

Diyar Al Muharraq is planned based on

real demand and real value and a need for

the kind of housing the development offers.

The prime objective of our project is to build

a true community, in every sense of the

word, which houses all strata of society in

a sustainable environment. Our focus is on

a secure long term growth and commitment

to the future welfare of Bahrain.

BIG: Talking about human resource development, how is Diyar grooming Bahrainis towards taking up the challenges of challetnging market conditions? What is your expatriate to Bahraini ratio?A.H: Being one of the largest master-

planned developments in the Kingdom,

Diyar Al Muharraq will provide extensive

amenities including schools, medical centres,

parklands, sports facilities, a shopping mall,

banks, a business district, hotels, local services

and modern infrastructure thus creating

thousands of job opportunities for Bahrainis.

As a socially responsible developer

committed to youth and community

“Diyar Al Muharraq is planned based on real demand and real value and a need for the kind

of housing the development offers”

COVER STORY

44 JUNE 2009

development, Diyar Al Muharraq will

sponsor and support students from various

private and public universities in the

Kingdom to unlock their potential and

encourage them to broaden their horizon.

Our ongoing sponsorship initiatives aim to

provide various opportunities for the younger

generation, such as deserving students who

are making outstanding contributions in

their fields. We will continue to collaborate

with top officials from various organizations

in the real estate sector and policy-makers to

work together as a group to develop all strata

of society in the Kingdom.Our Bahraini to

expat ratio is 60:40.

BIG: Could you share your insights into the Diyar project’s developmental status?

A.H: We are currently in the reclamation and

dredging stages of the project, which began

in November 2006. Currently, the project is

progressing ahead of schedule, with 97 per

cent of Stage 1 and 35 per cent of Stage 2 of

the reclamation completed thus far.

The expected completion date for the

first 6 square kilometers of the development

is November 2009. The infrastructure for

the same area will be fully completed by

mid 2013. Also, we expect the first facilities

to be ready for occupation by the first

quarter of 2011.

BIG: Understanding that there is a lot of

drive and orientation towards eco-friendly

projects, how is Diyar shaping up to it? How

are you planning to bring in sustainability?

A.H: I can truly say that Diyar has been a

model of environmental responsibility and

sustainability for projects in Bahrain and the

region. One of the key goals of the Diyar Al

Muharraq development is to offer an enhanced

standard of living for all levels of society by

focusing on the natural and built environment,

in and around the development.

We have always taken our environment

seriously--it is our legacy. We have a sound

and progressive environmental initiative

detailed in our Environmental Management

Plan (EMP), towards which we allocated a

budget of BHD3 million (US$8 million).

We exceed the standards required by the

Bahrain government and have been in talks

with various bodies to improve procedures

required for other projects in the Kingdom.

Another example of this is when we

recently became the first project in the

GCC to commission and adopt an online

environmental management system to

speed up and better monitor environmental

issues, called DIANA.

COVER STORY

45JUNE 2009

We also consult with international

expert environmental bodies as well as

our masterplanners; and locally, with the

Directorate of Environmental Assessment

and Planning (DEAP) and Marine Resources

Directorate (MRD), to ensure that the best

options are selected in terms of environmental

management of the development.

Broadly, our environmental strategies

include marine habitat enhancement

schemes, which encourage regeneration and

repopulation, and the participation in long-

term initiatives to support marine life and

fishing reserves within Bahrain’s waters.

These include funding pre-feasibility studies

for mariculture, building a new fishing

harbour at Ras Rayah, lagoon enhancement,

and the placement of artificial reefs.

Diyar Al Muharraq will monitor the

progress of the rehabilitation program of

the reclamation areas for several years to

ensure its effectiveness. It has also developed

an education and management program

for use by the DEAP and MRD for

ongoing monitoring to ensure the Diyar Al

Muharraq’s intervention continues to meet

pre-determined targets.

BIG: What was the most challenging aspect of your job thus far? How did you overcome it? And what were the results?A.H: Creating a masterplan that involved

an in-depth understanding of the many

complex environmental, technical and

regulatory issues was the most challenging

aspect of the project. The masterplan was

revised several times, as all masterplans are,

until we reached a version we were satisfied

culture to challenge and seek the best alternative

solution in all aspects of the development and

this involves tremendous dedication from

everyone associated with this project. Our

hard work has paid off and our masterplan has

set new standards in the Kingdom. Diyar Al

Muharraq is setting a benchmark in offering

housing across all the income ranges, without

compromising on quality.

BIG: How is Diyar positioned to influence the mass housing market in Bahrain? A.H: Diyar Al Muharraq is distinctive in

that we place social responsibility ahead

of any other objective. We will offer small,

medium and large plot sizes to ensure

that housing is available across all income

groups. Diyar Al Muharraq will make home

ownership more achievable, with one third of

the planned housing units in the affordable

(or reasonably priced) range.

It will offer a range of housing options

from apartments, to townhouses, to family

villas of varying sizes on a freehold basis.

All residences will have access to the same

high standard and wide choice of facilities

available for use by the whole community.

There are approximately 30,000 of these

units planned which will house in excess of

120,000 residents, which is roughly 10 per

cent of Bahrain’s current population. The first

elements of the development are expected to

be ready for use by 2011.

BIG: What’s next for Aaref Hejres? A.H: Unique projects like Diyar Al

Muharraq produce new challenges and I am

looking forward to meeting them.

with, and which covered all of the stringent

criteria necessary to achieve our goals.

We challenged and justified all the

engineering and development decisions before

reaching a final consensus. Our international

consultants Scott Wilson were pushed to

their limits to put in their best efforts and

perform to their maximum capacity.

At Diyar Al Muharraq, we have created a

“Diyar Al Muharraq will make home ownership more achievable, with

one third of the planned housing units in the

affordable (or reasonably priced) range”

REAL ESTATE

46 JUNE 2009

Considered as the lifeline of the real estate

industry in Bahrain, the rental business is far

from showing any signs of being affected due

to recession. In fact, the mid level segment

of the rental market has displayed buoyancy

owing to increased influx of expatriate labour

from neighbouring countries, slashed (high

value) housing allowances and relatively low

out-right purchase of freehold properties.

Another factor contributing for the growth

curve to tilt positively is the fact that the is-

land’s economy is less impacted than neigh-

bours such as Kuwait or Dubai.

Observing the trend, Teresa Sheepwash,

General Manager at RE/MAX, says: “The

rental market is still buoyant and rents are

not reducing. The Bahraini market is per-

forming better than other GCC countries

where rents do seem to be affected.”

Giving a more detailed view, Coryn

Hellewell, Associate Director - Residential

Leasing at Cluttons, cites: “Over the past

few months we have seen a slight drop in the

number of clients looking to rent residential

property. With the arrangement in Bahrain

of having to pay three months rental in ad-

vance, people who are already resident on the

Rentals to

BIG meets up with rental companies in the Kingdom and finds out how the market is shaping up amidst recession.

STAY STEADY

REAL ESTATE

47JUNE 2009

island, have been reluctant to move around,

especially when they are unsure of job se-

curity. However, compared to other GCC

countries, we still feel that the Bahrain resi-

dential rental market is relatively unaffected

by the recession.”Reflecting his thoughts from an economic

point of view, Murad S. Al Ramadan, Man-aging Director, Property One Investment Co., tells us that: “Supply and demand are the key factors on how the market performs, however affordability is a more important factor in determining a rental market per-formance, as of now the number of people who afford to rent is greater than the number of people who afford to buy which means the rental market is still effective. Moreover, property investors now prefer to buy residen-tial / commercial income producing proper-ties with rental yields between 8-10 per cent instead of lands, and we expect demand to increase on income generating properties. Therefore, if we consider the above factors we conclude that as of now there is no reason for a rental market drop down instead the cri-sis has stabilised the rental rates in Bahrain, but the market may experience a slowdown during the coming three months which may eventually affect rental rates slightly be-fore we experience a slow market recovery towards the end of the year. In most other GCC countries except Dubai rental growth rates are likely to stabilise at high rates, rather than come down markedly, because of their

governments ongoing investment programs

in the construction and property sectors.”

THE ECONOMIC FACTORIf one looks at the present global economic

scenario, one may logically expect the GCC

real estate market to be hit hard, which it has

but agents in Bahrain tells us that markets,

ing up their hair after experiencing a more

than 50 per cent drop in their property value

in Dubai thus far, any market correction is

most likely to bring the property value an ac-

ceptable level, but unlikely to touch the same

heights or levels when the investors bought

the properties. Numerous rapid private free-

hold developmental projects also fuelled over

capacity of space in the market. The situa-

tion, thus, is wait and watch.

So how does Bahrain excel in all this? To

begin with the Kingdom’s economy is the

smallest in the GCC region and the coun-

try has embarked on a growth drive that

has seen government’s strategic investment

soaring in various sectors. Added to this

the government’s initiative of undertaking

reforms has put Bahrain given a paradigm

shift of sorts. Also, being the Middle East’s

financial hub has seen the island attracting

international banking talent besides many

skilled professionals in numerous industries

and infrastructure projects. A combination

of these factors has led to a keep the real

estate market afloat, however, the multitude

of mega projects offering freehold properties

are witnessing a drop in investment levels.

Historically, Bahrain has attracted invest-

ment more investment from individuals in

the neighbouring countries, mainly Saudi

Arabia, who travel regularly for business and

tourism. The expatriate and institutional seg-

ment also seems to have slowed down.

In terms of inflation, marginal drop has

been reported in Bahrain within the higher

“The rental market is still buoyant and rents are not reducing. The Bahraini market is

performing better than other GCC countries where rents do seem to be affected”

such as Dubai, had heavy incidence of raised

inflation, hence the effect is much more

prominent than on the island. It is a given

fact that the larger the economy the large the

effect of crisis, and Dubai, for the type and

variety of lifestyle it offers, had pulled invest-

ments from various quarters during the boom

period which ultimately inflated the prices

beyond the consumers’ actual scope. Also,

the corporate sector out there suffered seri-

ous jolts that resulted in severe job cuts across

many industries thus ultimately affecting the

investment cycle. Gone are the days when

everyone, including Bahrain used to bench-

mark their socio-economic developments to

Dubai. Moreover, investors are virtually pull-

segment of the rental market but the mid

to low level segment still remains attrac-

tive. Pranesh Mudaliar, CEO of Conerstone

Brokers Company WLL, explains: “The

rental market in the Kingdom is still holding

strong. Growth in mid-size segment (mainly

the BD500 to 800) is being fuelled by re-

evaluation of expatriate housing allowances,

steady influx of students coming in from

Saudi and Kuwait besides the increase of US

naval force who typically come with a budget

range of BD775 to 995. Companies are not

hiring at the senior management level, hence

there is 5 to 10 per cent drop in rental value.

Bigger properties such as 4 to 5 bedroom

apartments and villas are facing difficulties in

Teresa Sheepwash, General Manager, RE/MAX

REAL ESTATE

48 JUNE 2009

office space the Kingdom still lacks sufficient

office spaces from this category except for the

Bahrain Financial Harbour and the World

Trade Center, more projects have been an-

nounced in Q1 and Q2 of 2008 such as BFB

Tower, Millennium Tower, Platinum Tower,

West End Tower all in the emerging busi-

ness district of Seef which became a target

for corporate relocations for many regional

multinational companies based in Dubai,

Abu Dhabi, and Qatar as the cost of office

space and staff accommodation is cheaper

in Bahrain. Although, most of these proj-

ects has been delayed, or slowed down as a

result of the current market conditions, these

corporate relocation plans has stretched the

demand on commercial property during the

crisis. Additionally, we still predict a slow re-

covery in the H2 2009 as the property prices

have already reached their rock bottom or are

at correction level therefore, there is no other

way except for things to recover. Overall, the

commercial property segment is still stable.”Explaining the trend further, Teresa ex-

plains: “I am surprised that in the current re-cession we are still receiving a large number of requests for commercial space. However, we have noticed that the smaller businesses tend to be looking for something with a low outlay in order for them to assess the Bahrain market before making large financial com-mitments serviced offices are becoming very popular. The supply of villas for commercial use is in limited supply and it takes time to receive the necessary municipality approv-als. A large majority of our clients prefer this type of property as is gives them exclusivity of the property, generally more space for their money and usually more parking than is be-ing offered by traditional commercial accom-modation. Although we do have a number of enquiries for large showroom space in malls and other sought after locations.”

Echoing a slightly different view, Coryn

says: “Rents have dropped off slightly from

land, Zawia 1, Floating City, and Meena 7

and the opening of the Lagoon as the com-

mercial heart of the Islands.”

COMMERCIAL PROPERTYWhat about the rentals for commercial

space? With businesses mushrooming over

the island for sure it is a cause of concern

since market segmentation is subject to the

size of the business.

Murad informs us that: “In terms of com-

mercial property we are talking mainly about

office spaces, and if we talk about Class A

getting rented. However, landlords will con-

tinue to hold on to their prices with expecta-

tion that market will correct itself soon.”

Reflecting her thoughts on the corporate

side of the rental market, Coryn says: “Over

the past few weeks we have noticed an in-

crease in the number of professional expa-

triates arriving on the island, and an increase

in demand for residential rental property.

Majority of our clients are looking to rent

semi furnished villas in the BD1200-1600

price bracket, or fully furnished apartments

in the BD800-1000 price bracket. A typical

4 bedroom villa in the Saar area can range

from BD1200-1800 per month, and a good

quality furnished apartment in areas such

as Seef and Adliya range from BD800-

1200 per month.”

Talking about the market segment, Mu-

rad says: “Most of the enquiries on properties

are on 2-3 bedroom apartments and small to

medium size villas 3-4 bedroom with a rental

bracket of BD600-850 for apartments and

BD900-1200 for villas. Juffair, Adliya, Ma-

hooz, Um AlHassam are the top demanded

places in the Capital, while the demand is

heating up on Amwaj Islands especially with

the completion of main projects like Tala Is- Murad S. Al Ramadan, Managing Director, Property One Investment Co.

REAL ESTATE

49JUNE 2009

their peek, maybe 10 per cent, but rents in

Bahrain have always been below those in

neighboring GCC countries and have there-

fore been less affected. Many companies are

using this period to reassess their require-

ments with regard to the space they occupy

and are looking to move so the market is still

pretty active. Also from the point of view of

international companies Bahrain has been

less affected by the current global recession

than most and is therefore is an attractive

market into which to open operations. It

is still a tough market for those looking to

sell commercial property due to the ongoing

scarcity of credit but this means that there

are good opportunities for those buyers in

the market with access to equity.”

MATTER OF SIZEOne of the most sought-after rental price

bracket in Bahrain is BD250 to 400 range of

apartments, which unfortunately is in short

supply according to agents. However, new

measures are being taken to address the con-

cerns of this bracket and landlords are keen

on developing properties understanding that

the actual value of land and construction is

much lower to erstwhile.

Teresa, further tells us that: “People are

obviously trying to save money and cut costs,

however, in the 5 years we have been in op-

eration there has always been a lot of requests

for this price range and a lack of family

property in the bracket, this is nothing new.

However, a number of very astute owners are

now building apartments in prime residential

locations which are targeted at this lower/

mid range but these are not always suitable

for families of course. We have found that

our client’s expectation of what they will get

for their money has increased, and more and

more landlords are taking these requests on

board when developing new projects. Be-

cause of prices of land and construction over

the past few years, owners have built larger

properties to try to gain a healthy return on

their investments, until the land and con-

struction prices level out there will never be

enough lower range properties around.”

CHALLENGESOne of the major challenges that the rental

industry is facing is the profile of the agents.

Beyond the conventional and proper agen-

cies there are a host of individuals who also

operate in the market. Professional agencies

cite this as a real problem since these indi-

viduals operate on 25 to 50 per cent commis-

sion as compared to them who usually charge

one full month’s rent as commission from the

Pranesh Mudaliar, CEO, Conerstone Brokers Company WLL

landlord. Also, since usually any property for

rent is given out to these individuals the gen-

eral issue is of multiple agents showing the

same property to prospective tenants.

Observes Teresa: “Our particular chal-

lenges are not necessarily directly related to

the properties but more to the attitude of the

prospective tenants and landlords, who have

maybe had experiences with unprofessional

agents in the past. Unfortunately because

there appears to be little legislation govern-

ing real estate in general, there is a tendency

for those that working in the agency side of

the business not to be taken seriously as pro-

fessionals. Prospective tenants Bahrain do

not always understand that very few agents

have properties exclusively in their portfolio

and therefore contact a number of agents to

source them properties.

This of course results in a lot of duplica-

tion and time wasting for all parties. From

the other side, landlords/ owners are now

reluctant to pay a fair rate for agency ser-

vices which results a number of disputes.

It is quite easy for “one man band” agents

to accept a lower rate that the standard one

month expectation in the market, but when

you are an International company with busi-

ness overheads it is not practical to work with

owners that do not recognise the professional

services that are being provided, not only at

the time of the rental being completed but

also the after service.”

On a final note, islanders are worried with

one question these days as to who is going

to buy the numerous freehold properties

that are being developed by mega developers

across the island. While most of the projects

were launched during the boom period with

high cost of land and construction, developers

are seen rescheduling their budgets to fit the

present market conditions. However, prices

for the same have not yet dropped alarmingly

as in Dubai or any other place and owners

have shown the tendency to hold on to their

investments until market shows signs of re-

covery. However, an agency did notify us that

developers should also look at renting their

new properties rather than waiting for sale to

happen as this will at least make more rooms

available and revive the sector until the global

investment situation improves.

DIPLOMAT OF THE MONTH

50 JUNE 2009

is a Great Force toArt

UNITE MINDS

BIG meets up with H.E. Ghassan Muhsen Husain, Ambassador of Iraq to the Kingdom to Bahrain, and discusses the Iraqi-Bahraini relations and gets his views on various other topics. Excerpts:


51JUNE 2009

BIG: Considering the long heritage of Iraqi-Bahraini relations, how do you in-tend and plan to enhance it further?Ghassan Muhsen Husain: The Iraqi-Bah-

raini relations date to back to the civilisations

of Sumer and Dilmun which were existent

thousands of years ago. Hence, it is natural

for both the countries to feel close to each

other historically, culturally and economi-

cally. As far as I am concerned, I have been in

Bahrain for the past five years and have made

every effort to take our relations to the next

level by enhancing the bilateral relations on

various fronts. I have always felt the extreme

warmth and friendliness of Bahrainis right

from the time I’ve my foot here and often

been welcomes with open arms both for-

mally and informally. Also, Iraq and Bahrain

are linguistically link as the island’s Arabic

dialect is close to the one spoken in southern

part of my country. Thus, our relations are

based on a solid foundation and take this op-

portunity to thank the country’s leadership,

government and ministries for supporting

and assisting Iraq in various fields.

BIG: How do you utilise art as your me-dium to further relations?G.M.H: I believe art is a great healer and

plays a big part in uniting minds and ulti-

mately people. As an artist I often come to-

gether with a host of people from different

walks of life, which helps me to spread my

message of peace and harmony. Recently, I,

along with Bahrain’s renowned artist Abbas

Musawi and Tunisian artists held an exhibi-

tion in Tunisia, which was quite successful.

It is through art that we celebrate the Unit-

ed Nations Day, help children with special

needs and poor families.

BIG: What kind of exchange pro-grammes are being conducted between both the countries?G.M.H: Considering the present socio-

economic climate in Iraq we of course need

training and assistance in various fields and

Bahrain has always been in the forefront of

it. Many Iraqi professionals working in the

fields of medicine, nursing, civil defence,

banking and others have been regularly at-

tending symposiums and speciality courses

in Bahrain on a regular basis.

Moreover, in terms of humanitarian as-

sistance, Bahrain recently gave medical treat-

ment to 50 Iraqi children and has always sup-

ported people with chronic medical illness.

BIG: Talking about economic develop-ment which are the areas of co-operation you are keenly looking at with Bahrain?G.M.H: We are working at cooperating

with Bahrain within the communication

and transport sectors including air, sea and

road transport. Without an effective trans-

port link there is no business and trade. As

the ongoing economic crisis starts to fade

off, I believe it will be the right time to

strengthen communication and transporta-

tion ties. As the oil prices are steadily going

up, Iraq will certainly do better in 2010. Iraq

has the largest oil reserves in the world, has

a currency which is quite strong in value and

has a declining inflation that has dropped

from 32 per cent to 15 per cent off late. We

are waiting for the joint ministerial meeting

“I have been in Bahrain for the past five years and have made every effort to take our relations to the next level by enhancing

the bilateral relations on various fronts”


52 JUNE 2009

between Iraq and Bahrain to take things to

the next level.

BIG: So what progress has been made so far in this regard?G.M.H: We received a preliminary proposal

from the Bahraini side for a transport agree-

ment to which we have already responded.

Gulf Air has shown keen interest in oper-

ating cargo routes and had earlier sent two

technical teams to inspect Najif and Bagh-

dad airport; the former is fully functional

now. Also, we granted 14000 visits for Bah-

raini pilgrims last year.

BIG: What sort of business interests have you received from Bahrain side?G.M.H: Recently, JP Morgan Chase (Bah-

rain) officials had travelled to Iraq along with

their British counterparts to survey banking

opportunities. Bahraini companies are mainly

looking at investing in real estate, shopping

centres and facilities. Jawad is already oper-

ating Costa Coffee franchise at the Najif

airport. Also, the governors of Al Anbar and

Salahuddin provinces in Iraq were recently in

Bahrain promoting investments.

BIG: Could you throw some light on the business and trade flow between Bahrain and Iraq? Please cite some statistics and figures.G.M.H: Trade between Iraq and Bahrain

increased nine folds in 2008 to BD9.436 mn

from BD1.3 mn in the previous year. I still


53JUNE 2009

feel this is a modest figure and will go fur-

ther up in years to come. Bahrain mostly ex-

port creams, mineral water, plastic materials

like hats, vinyl polymers, ships and rowing

boats and asphalt reels to Iraq; and has been

importing tractors, paintings and drawings,

lamps and lighting devices, packaging of

medicines for retail sales, fresh dates from

Iraq. For the moment there is one Iraqi

agency and eight investment companies

working in Bahrain. Of course the ongoing

crisis will affect the trade flow between the

two countries but I feel it is a temporary af-

fair as economist are expecting global econ-

omy to start reviving by 2009-end.

BIG: What other programmes is Iraqi government presently undertaking?G.M.H: Young Iraqi diplomats are getting

BIG: You’ve recently laid the foundation stone for building a new Iraqi Embassy in Bahrain? Does this mean an improvement of diplomatic ties? How soon is the project expected to be completed?G.M.H: The setting up of our new prem-

ises is testament of reinstating the cultural,

historical and economic bondages among

two great Arab nations. Ever since my ap-

pointment as the ambassador to Bahrain I

have cherished a dream of embarking on

the project. Today, I feel extremely proud to

have laid the foundation stone of our new

embassy myself. It is a kind of personal and

trained in various aspects of their job in-

cluding enriching their knowledge, writing

reports, improving their language skills, etc.

But this programme is not confined to Bah-

rain only but is a worldwide programme.

official achievement to me. Also, being an

artist I have managed to put my impression

on the exteriors of the embassy by keeping

Babylonian motifs so one can experience the

rich Iraqi heritage first hand. My vision is

to make it a landmark building in the area

as has been done by our mission in Finland,

whereby the Iraqi Embassy out there has be-

come a tourist attraction.

BIG: What kind of personal traits have you lend to the mission?G.M.H: I follow an open door policy and I

motivate my staff at all activities by not dif-

ferentiating between them.

BIG: What are your reflections on the po-litical stability in Iraq, understanding the long-standing war that has affected the country’s economy? G.M.H: We need to practice unity at all

the levels and that is our only way out of

the present crisis. We need to build social

justice and depend on expertise whenever

needed to develop our country and stay

away from foreign influences that stand to

divide our society. Iraq is a rich country but

unfortunately we are witnessing hard times

due to the fact that our previous political

system put our country to catastrophic risks

at the expenses of our denizens and by tak-

ing some hasty decisions that led us to war

and invasion. We now have to confine our

military prowess at national borders and

protect our citizens.

BIG: So what is your message to the Iraqi community in Bahrain?G.M.H: There are around 2500-3000 Iraqis

living in Bahrain and are engaged into fac-

ulties of medicine, engineering, insurance,

education and sports. My only message to

them is: “You are the ambassadors of Iraq

and you should strive to give people the best

of your country all the time.”

“Bahraini companies are mainly looking at investing in real estate, shopping

centres and facilities

INVESTMENT

54 JUNE 2009

Over the past five years there has been

considerable interest in how and where the

GCC countries have been investing their

“petrodollar” windfall. The issue has at-

tracted even greater attention in the recent

BIG speaks to experts and tries to find out how the GCC region has been

building up its investment portfolio abroad.

conditions of global financial turbulence and

concerns about the scarcity of global capital.

We seek to assess the magnitude and de-

ployment of GCC capital flows abroad, and

take a closer look at how they are evolving in

current conditions.

The GCC countries have been running

large and increasing external current account

surpluses since the onset of the oil boom in

2003. The counterpart of these surpluses is,

by definition, invested in real and financial

assets abroad. Over the five years ended June

2008, the cumulative acquisition of foreign

assets by the GCC exceeded US$900 bn.

Because of data limitations, only about 40

per cent of these flows can be identified by

geographical destination or asset class.

Traditionally, the US has been the desti-

nation for the bulk of GCC capital. Indica-

tions are that interest in the US market has

remained strong in recent years, accounting

for almost half of the foreign assets accumu-

lated during the past five years.

The share of GCC capital flows destined

to countries other than the US over the past

five years — some US$450 bn — has found

its way into a variety of asset types in other

parts of the world. Favoured areas have been

Europe, the Middle East and North Africa,

and East Asia. FDI into these areas has

shown particularly strong growth.

The onset of the credit crunch in the sec-

GCC INVESTMENTSABROAD

INVESTMENT

55JUNE 2009

ond half of 2007 triggered increased GCC

demand for US treasury bills and, more sur-

prisingly, US corporate securities. The credit

crunch also reawakened interest in bank de-

posits in leading capital canters after a long

period of decline.

The current turmoil is likely to spur in-

terest in the safety of US government debt.

However, those Gulf funds that emphasise

longer term investment strategies may be

attracted to the comparatively cheap valua-

tions of US and European equities, and are

likely to gradually build up their holdings of

these assets (albeit highly selectively) in the

period ahead.

In a context of growing global financial

turbulence, and persistent concerns about

the scarcity of global capital, there is consid-

erable interest in how the GCC’s “petrodol-

lar” windfall has been deployed. We attempt

to track these outflows by geographical

destination and asset type over the past five

years using a variety of data sources. We also

take a closer look at developments in the

months following the onset of the global

credit squeeze, and make some broad obser-

vations about likely GCC investment strat-

egy going forward.

CAPTURING CAPITAL FLOWS From mid-2003 to mid-2008 oil prices more

than quadrupled, from just over US$30/bar-

rel to US$140/b. The price surge, in conjunc-

tion with incremental additions to export vol-

umes, boosted the GCC’s cumulative export

earnings over the period to about US$2.2

trn. A large, and growing, element of these

earnings was spent on imports of goods and

services as the six states stepped up efforts

to develop the industrial and services base

of their economies. However, such was the

ascent of oil prices that the current account

surplus swelled dramatically from around

US$50 bn in 2003-04 (year ending June) to

almost US$400 bn in 2007-08. In aggregate,

the current account registered a cumulative

surplus of US$912 bn over the period.

A comparatively small part of this was used

to build up central bank foreign exchange re-

serves. The bulk has been channelled into a

variety of other asset classes and into an in-

creasingly diverse array of countries.

While tracking current account flows is

relatively simple, tracing GCC capital flows

is more challenging. GCC capital account

data are fragmentary and suffer from sig-

nificant time lags. Such capital flows data

that are available are generally recorded in

net terms, but even where data on inflows

and outflows are provided, the nature of

outflows is not revealed (other than, for ex-

ample, “debt” or “other”). Thus, it is necessary

to use counterparty data and other interna-

tional sources in order to sketch out a picture

of GCC capital flows. There are three main

international sources:

flows to the U.S. is the Treasury Interna-

tional Capital System (TIC). TIC provides

data on U.S.-resident banking sector assets

and liabilities with foreign institutions, as

well as foreign holdings of U.S. securities.

Though comprehensive, one serious weak-

ness of the TIC data is that it fails to capture

the ultimate owner of a security when it is

purchased via a third country broker-dealer,

or held on behalf of another owner by a third

party custodian.

“Indications are that interest in the US market has remained strong in recent years, accounting for almost half of the foreign assets accumulated

during the past five years”

INVESTMENT

56 JUNE 2009

-

ternational Settlements’ (BIS) Quarterly

Review. This tracks the aggregate assets and

liabilities of its reporting banks against indi-

vidual countries, and includes data for each

of the six GCC states. However, the data do

not reveal the geographical location of indi-

vidual reporting banks, other than the fact

that they are located outside of the US.

-

base on mergers and acquisitions. This pro-

vides detailed information on global merg-

ers, acquisitions, and divestitures by acquirer,

type, value (US$) and premium, and is useful

for tracking major equity purchases (i.e. FDI)

made by GCC companies and governments.

UNIDENTIFIED FLOWS The GCC region has always had preferred

geographical locations over the past two

years, reflecting in turn both the stunning

growth in the investible surplus, and the

emergence of newer, more aggressive GCC

Sovereign Wealth Funds. Put another way,

once relatively safe and liquid investments

have been made, GCC fund managers have

a considerable excess to invest in more di-

verse holdings.

One notable impact of this evolving strat-

egy is the growing volume of GCC funds

being channelled to other Middle East and

North African countries. The MENA re-

gion has witnessed substantial structural

reform progress over the past few years, and

encouraged by growing privatisation, dereg-

ulation and improved regional integration,

the GCC has channelled significant funds

into real estate, energy, telecoms, and equity

markets. Particular countries include Jordan,

Egypt, Morocco and Lebanon.

Until recently, substantial project fi-

nance deals were also helping the region to

retain capital. The Middle East project fi-

nance market was the largest in the world

in 2007, with regional entities selling a total

of US$23.7 bn of bonds last year, up from

US$14.6 bn in 2006. A growing proportion

of this was on Islamic terms, allowing Gulf

investors to tap fixed income investment

opportunities that did not exist previously.

Nevertheless, the impact of the global credit

squeeze in 2008 on GCC credit and capital

markets has been severe, and bond issuance

has been at a standstill since mid-year.

All told, it is estimated that GCC invest-

ment into the broader MENA region (in-

cluding Turkey) at around US$120 billon,

or 13 per cent of the total. This obviously

excludes intra-GCC flows, which have also

grown rapidly in recent years.

Europe remains an important destina-

tion for GCC funds and it is estimate that

Europe attracted some 55-60 per cent of

FDI outflows from the Gulf region over the

period. Notable recent stakes or acquisitions

include the German Industrial Conglom-

erate Mauser Werke, Travelodge hotels of

the UK, and the London Stock Exchange.

Investment in European stocks and bonds

has also continued apace, particularly as

currency diversification has moved up the

GCC’s agenda. Until the recent downturn in

property values, traditional property centres

in the UK, France and Switzerland were also

continuing to attract significant flows of pri-

vate GCC capital. Together, these flows may

have constituted around US$200 bn, or 22

per cent of GCC outflows in 2003-08.

East Asia has been an important destina-

tion for GCC capital over the past three or

four years, particularly for debt and FDI. Ma-

laysia is an important magnet given its pre-

eminence in Sukuk origination. Real estate

and energy projects in China have also been

attractive, as have Chinese equities. More

broadly, Asian telecoms and finance firms

have featured prominently among GCC

deals. All told, we believe that GCC invest-

ments in East Asia amounted to US$120 bn

or 13 per cent of total flows over the period.

The ME project finance market was the largest in the world in 2007, with regional entities

selling a total of US$23.7 bn of bonds last year, up from US$14.6 bn in 2006

INVESTMENT

57JUNE 2009

OUTLOOK FOR FOREIGN ASSET ALLOCATION The decline in global oil prices during the

second half of 2008 has been rapid, with a

peak-to-trough fall of 48 per cent ( July 3

- November 12). The outlook for oil prices

remains very uncertain, but the current ex-

pectation is that prices will average around

US$60/barrel in 2009, not far below the av-

erage for 2007. A slight increase to around

US$75/barrel is envisaged for 2010 as global

demand begins to recover. Given this, it is

expected that the GCC capital outflows

would amount to about US$430 bn between

June 2008 and June 2010. How will this

capital be distributed?

Clearly, the most recent and intensive

period of market turmoil, when a number

of major bank failures and bailouts rocked

global money and equity markets, is likely to

colour the short-term thinking of GCC fund

managers, particularly as a number of them

had taken significant stakes in US financial

institutions. Available data do not capture the

impact of these dislocations on GCC capital

movements, but one can surmise that GCC

investors will have followed the initial “flight

to quality” and reinforced their holdings of

US T-bills, while reducing their holdings of

long-term commercial paper. Thus, it is likely that there has been a

diversion of GCC flows away from equities and corporate debt and into short term gov-ernment paper in the second half of 2008. Nevertheless, the appetite for FDI has not completely abated: one notable acquisition was the purchase by a group of investors from Abu Dhabi and Qatar of up to 16 per cent in Barclays Bank of the UK for a sum of US$12 bn in October 2008.

Moving into 2009, it is clear that OECD growth prospects have been badly tarnished by the recent turmoil (and other factors). US and EU consumers seem likely to continue to retrench and build up savings in the face of falling asset prices. This in turn will likely impair corporate profitability, making both US and EU equities and M&A options less attractive (if cheaper). Slumping OECD de-mand will have a knock-on effect on Asian export growth; nevertheless, China’s pros-pects have improved with the announcement of substantial additional government spend-ing, which should help to stimulate domestic demand. Countries that are less integrated into the global financial system (and more immune from global dislocations) are also likely to become more appealing. Thus, other MENA countries will increase their allure for GCC investors, particularly given their cultural and linguistic connections.

Overall, it is expected that one will see some polarisation of investment flows over the next eighteen months or so, with a bias towards both “ultra safe” securities, such as OECD government paper, and more exotic asset classes such as MENA and Chinese M&A, and corporate debt. Meanwhile, the middle ground of OECD corporate debt and equities, along with some Asian securi-ties are unlikely to regain their allure.

Nevertheless, those Gulf funds that emphasise longer term investment strate-gies may take a more benign view of the current environment. They will likely be attracted by the comparatively cheap p/e ratios of US and European equities, and are likely to gradually build up their port-folios (albeit highly selectively) over the

medium to long term.

Much of the unidentified flows are man-

aged by the GCC’s public investment

funds (or Sovereign Wealth Funds). These

funds employ varying strategies – some

seek to acquire strategic stakes in firms,

others are content to cede control to pro-

fessional portfolio managers. Tradition-

ally, the Abu Dhabi Investment Authority

(ADIA) and the Kuwait Investment Au-

thority (KIA) tended to invest passively, or

indirectly, with holdings in a broad range

of asset classes, such as equity, fixed income

(including Islamic bonds) and alternatives,

but also with large holdings of cash depos-

its (US$200-300 bn in ADIA’s case). In

recent years, KIA has made more direct,

strategic investments. Both institutions

are thought to favour equities (accounting

for perhaps 60 per cent of assets), and are

often overweight Europe, though KIA ap-

pears to have been increasing its exposure

to MENA and East Asia. Financial ser-

vices tend to feature heavily.

By contrast, relatively new public in-

vestment funds, such as Abu Dhabi’s

Mubadala, The Dubai Investment Corpo-

ration, Qatar Holding (part of the Qatar

Investment Authority), and Dubai’s Is-

tithmar typically act as private-equity style

funds, and often have a mandate to create

synergies with nascent domestic industries.

Istithmar, for example, has taken strategic

stakes in aviation and financial services, re-

tail and health care. Outside of the GCC,

it tends to favour the UK and to a lesser

extent the US, and has plans to expand its

presence in East Asia.

The Saudi Arabia Monetary Agency

(SAMA) is not a SWF, though it has a

large portfolio of foreign assets, the size of

which is revealed in its Monthly Statistical

Bulletin. (These amounted to US$433 bn at

end-September 2008, with foreign reserves

worth an additional US$9.5 bn.) Most of

the assets under SAMA’s management are

thought to be invested in liquid, low-risk

bonds and cash and equities. Its holdings

are likely to be heavily weighted towards the

US dollar. The Public Investment Fund has

been mandated to establish the Kingdom’s

first SWF with US$5.3 bn of start-up capi-

tal. It is expected to be closely modelled on

those of Singapore and Norway.

GCC foreign asset accumulation in

2008 (calendar year) is likely to reach

around US$390 bn. However, the stock of

assets is thought to have stagnated given a

poor performance from most types of asset

classes. Merrill Lynch estimates that returns

for all SWFs would have shown negative

growth of 17 per cent in the year to Sep-

tember 2008, based on its estimate of SWF

asset allocation (50 per cent equities, 20 per

cent alternative, 30 per cent fixed income).

Extrapolating from this, and taking account

of both the severity of the financial turmoil

in October, and the conservative bias of

many GCC funds (which would have large

holdings of T-bills), we estimate that GCC

funds under management are likely to have

shown a negative 15 per cent return in 2008.

This would almost offset the impact of the

additional oil windfall, leaving the net stock

essentially unchanged on 2007.

SOVEREIGN WEALTH FUNDS

GLOBAL BRAND

58 JUNE 2009

MINI TURNS

A magnet for fans from around the globe

Around 25,000 enthusiasts converged on Silverstone to wish MINI a happy 50th birthday. BIG brings out the historical perspective of one of the world’s greatest, most fashionable and desired brand.

The third edition of what has already be-

come the legendary MINI United Festival

was held this year from May 22-24, 2009 at

the Formula One track in Silverstone, Eng-

land. Around 25,000 fans from more than 40

countries made the pilgrimage to the world’s

premier gathering of its kind. They arrived

in over 10,000 MINI models, most of them

lovingly individualised. Numerous Ger-

man fan clubs made their way to the venue,

mostly setting out by car on the long journey

to the UK. Even for participants from as far

afield as Russia, the USA and South Africa,

no effort or cost was too great to ensure they

could pay personal tribute to the British clas-

sic on its 50th birthday. Likewise determined

not to miss out on this winning mix of racing

action, music festival and lifestyle spectacular

were a whole raft of celebrities.

As part of the world premiere for the new

Mayfair and Camden special models that

have been produced to mark MINI’s 50th

birthday, the now 75-year-old Mary Quant

– British style icon and inventor of the mini-

skirt – disclosed a long-guarded secret: the

designation “mini-skirt” is not derived from

GLOBAL BRAND

59JUNE 2009

the celebrated brevity of the garment; it

was her much-loved car that inspired her to

choose this name.

To mark the 50th anniversary, MINI

also took the wraps off a reinterpretation of

George Harrison’s flamboyant model. This

one-off, presented to Olivia Harrison on Sat-

urday night, fully met the precise design brief

of the Beatles’ widow. She accepted the MINI

on behalf of the Material World Charitable

Foundation, a charity which George Harrison

founded in 1973. The car will be auctioned

this year to raise funds for the foundation.

“George was a huge MINI fan and he would

have enjoyed this new version. The fact that

the 50th anniversary celebrations for MINI

will also benefit our foundation has made it

an enjoyable as well as meaningful collabora-

tion,” said Olivia Harrison.

But there were plenty more unique mod-

els to get pulses racing among the fans. Brit-

ish fashion designer Paul Smith again pre-

sented the model created by him, while the

designs by David Bowie, Kate Moss, Misso-

ni and the acclaimed illustrator and graphic

designer Alan Aldridge were also on display.

Similarly drawing approving looks were the

original cars from films like “The Italian Job”

and “Austin Powers”.

THE FORMATIVE YEARSA BMW Group company since 1994, the

brand’s concept was always unique – and to

this day the MINI remains unique in all its

features, qualities, and characteristics: It was

fifty years ago, to be precise on August 26,

1959, that British Motor Corporation (BMC)

proudly revealed the result of their develop-

ment activities in creating a new, revolution-

ary compact car. And indeed, the public, right

from the start were able to admire no less than

two new models: The Morris Mini-Minor and

the Austin Seven. This double premiere of two

almost identical four-seaters was of course at-

tributable at the time to the broad range of

brands offered by BMC in the market, but it

was also of very symbolic nature.

Lots of space inside with minimum di-

mensions outside, seats for four passengers,

impeccable driving characteristics, superior

fuel economy, and a very affordable price

– precisely this was the brief the creator of

the Mini, automotive engineer and designer

Alec Issigonis, received from BMC’s top

management. And the brilliant ideas he im-

plemented in developing this two-door for

a family of four had an impact quite suffi-

cient for more than one single car, an impact

therefore carried over successfully to other

model variants.

Precisely this is why the Mini Van and

Mini Estate also appeared on the market

in the very first year of production of the

classic Mini. And ever since the re-birth

of the brand with the market launch of the

MINI in 2001, the principle already applied

successfully fifty years ago has once again

proven its full value: a superior concept is

always convincing in many different variants

and renditions. Both he MINI as well as

the MINI Clubman and MINI Convertible

show their individual strength and unique

character, while right inside they are one and

the same car in particular: a MINI.

Today, fifty years later, we know that only

very few car concepts have survived such a

long time, and none of them has ever been

converted into such a wide range of variants

as the Mini.

One of the reasons for this outstanding

success is that from the start the Mini met

all the requirements of its time, while offer-

ing further qualities in the same process.

Measuring just 3.05 metres or 120” in length

GLOBAL BRAND

60 JUNE 2009

and selling at a retail price of £496, the Mini

was simply perfect for small parking spaces

and low budgets. Through its driving quali-

ties and the charming character of its pro-

portions alone, the Mini was however also

of great interest to the ambitious motorist

seeking not only compact dimensions and

superior economy, but also sporting perfor-

mance particularly in bends as well as indi-

vidual style on the road.

This blend of different qualities re-

mains as popular today as ever before,

with a concept likewise younger than ever.

Hence, the current MINI is also more

up-to-date and, at the same time, more

fascinating than any of its competitors,

combining unparalleled efficiency, lasting

value of the highest calibre, and incredibly

agile handling in the modern mega-city

with unrivalled sportiness and design full

of expression and quite unmistakable.

As early as in 1960, BMC added a Mini

Van to the classic Mini. Then, proceeding

from this van structure with its closed side

panels, BMC introduced an Estate version

with glass windows all round as well as two

rear doors, like the Van.

A very special variant destined more

than any other to create the legend of the

classic Mini made its appearance in the sec-

ond half of the year: the Mini Cooper. John

Cooper, the famous engineer and manufac-

turer of sports cars already a close friend of

Alec Issigonis, had recognised the sporting

potential of this new small car right from

the start, when the first prototypes ap-

peared on the track. So he received the go-

ahead from BMC’s top managers to devel-

op a small series of 1,000 units of the Mini

Cooper featuring a modified power unit

enlarged in size to 1.0 litres and offering

maximum output of 55 hp. The response to

this car entering the market in September

1961 was quite simply euphoric, with only

one further request from enthusiasts every-

where: even more power! So Issigonis and

Cooper enlarged engine capacity to 1,071

cc, raising engine output to 70 hp.

SMALL CAR, GREAT SHOW MINI MARKETINGThe MINI always hits the headlines wher-

ever it appears – even before a new model is

introduced into the market. Innovative and

unconventional marketing campaigns always

flying approach is the launch campaign for

the new MINI Convertible: Eye-catching,

quick-minded and tongue-in-cheek short

films presented in the internet immediately

highlighted the open-air driving character of

the MINI Convertible, arousing great public

response and broad recognition in the film

and advertising industry.

MINI was also the world’s first car

maker to use an interactive print ad with

a virtual 3D model. Applying this innova-

tive augmented reality technology, MINI

bridges the gap between the real and the

digital world, between the two-dimensional

print ad and the three-dimensional product.

Only when the beholder has established an

online connection to the www.mini.de/we-

bcam website and receives the print ad on

his computer’s webcam does the new MINI

Convertible appear on his screen as a virtual

model – live and in all three dimensions.

Like on a stage, the new MINI Convert-

ible is suddenly parked on the advertising

site, true-to-detail 3D data of the car be-

ing connected with the live picture. Then, as

soon as the ad is moved, the MINI Convert-

ible will also move in parallel, naturally in

real time. This allows the beholder to choose

his perspective as he wishes, interacting

playfully with the model.

Unconventional and unmistakable: MINI

marketing as a genuine happening.

All MINI marketing activities show un-

mistakable style and have a high recall factor. A

further feature is their high standard of artistic

excellence, with renowned artists in the world

good for a surprise and generating great ap-

peal present both the MINI brand and the

individual models with full impact.

MINI marketing uses an exceptionally

wide range of communication channels to

establish close contacts with potential tar-

get groups. Supplementing classic activities

in print media, on the radio and television,

MINI’s marketing experts developed inno-

vative online activities right from the start

tailored precisely to the modern, trend-

minded and technology-oriented user of the

world wide web and taking the options of

interactive communication with the public

into account.

Applying this philosophy, MINI sets new

benchmarks time and again not only in the

world of motoring, but also in the world of

marketing. A very good example of this high-

GLOBAL BRAND

61JUNE 2009

of design and film regularly contributing their

creativity to the MINI and the band.

Unconventional marketing is indeed of

particular significance to MINI within the

entire range of communication activities.

Precisely this is why innovative and sur-

prising concepts serve time and again when

introducing new models to reach important

target groups and generate a powerful public

effect with great appeal.

Such campaigns often take on the char-

acter of an artistic happening, the most cov-

eted prizes and awards regularly confirming

the innovative character and wealth of ideas

borne out in the brand’s campaigns.

The Mini marketing experts also kept a

close eye on the worldwide success of tele-

vision, carefully using this new media also

for the Mini. Special TV commercials were

therefore produced for various purposes in the

market, in all cases emphasising selected facets

of the Mini’s character and naturally consider-

ing the cultural context of the local public.

Whether as the perfect solution for con-

gested traffic in downtown Paris or as the

ideal means of transport to the beach in

Australia – the Mini was always presented

as the right car at the right place. Even in a

cartoon it proudly presented its superiority,

full of humour and again with that famous

tongue-in-cheek style.

MAKING A NEW START WITH INNOVATIVE IDEAS. The re-launch of the brand in 2001 also marked a new beginning in marketing care-fully prepared in parallel to the development of the car as such. The main challenge was to establish MINI as the first premium brand

in the small car segment, with MINI to be positioned worldwide as a unique and fully independent brand in its own right – a brand revolving around the concept of enthusiasm and thrilling lifestyle.

These principles of brand manage-ment remain unchanged to this day, with the MINI characterised by its outstanding product substance and progressive technol-ogy, emotional design and agile driving be-haviour as well as almost unlimited options in customising the car. A further significant point is finding and maintaining the right balance of continuity of a brand now going back 50 years and its innovative capacities.

Introducing the MINI, customers the world over for the first time had the opportu-nity to experience premium qualities in a small car. These outstanding qualities and features are indeed to be found in every model made

by the brand, at the same time distinguishing

MINI clearly from the competition.

The same applies to the brand’s appear-

ance in public, where all marketing tools fol-

low a unique, consistently recognisable style.

Graphic elements, colours, the language of

pictures and the MINI concept conveyed in

words and pictures are clearly defined. MINI

is refreshingly different. Through its open-

ness and self-confidence, the brand gains

great acceptance, through its appearance it

arouses curiosity and appeal.

To arouse the attention of the target

group in mind right from the start prior to

the market launch of the MINI, the respon-

sible marketing experts have been taking a

new approach in communication from the

beginning. The magazine “MINI interna-

tional”, for example, regularly portrays se-

lected cities around the globe, focusing on

their particularly creative inhabitants.

Apart from classic communication, other

innovative forms of communication such

as “guerrilla marketing” are also used. And

right from the start in the year 2000 MINI

became the first car brand to use the internet

not only as an information, but also as a po-

sitioning media for the product.

Cars sold till dateOver 5.3 mn classic Minis and since 2001 when BMW Group launched the new MINI, 1.4 mn MINI cars have been sold. In total, 6,7 mn Market PenetrationAvailable in 80 markets Dealership NetworkAround 1,300 certified MINI dealers worldwide Versions of Mini Currently three models in the MINI portfolio: The classic MINI Hatchback, The MINI

Cabrio and the MINI Clubman. In the second half of 2010 BMW Group will launch the MINI Crossover – the first MINI of the new generation models with four doors, a length of over four metres and four-wheel drive.Popular MINI modelThe classic MINI Hatchback Highest selling country or regionDubai 190 units per year Abu Dhabi 89 units per yearLebanon 60 units per yearSaudi 55 units per yearQatar 54 units per year

MINI HIGHLIGHTS

COLUMN

62 JUNE 2009

By: Leila Belpaz

When you hear the name Frills & Foosha,

uniqueness, originality and femininity im-

mediately spring to mind. True to its name,

Frills & Foosha offers young women in their

early 20s to late 40s the ability to stand out

in outfits that bring radiance to normality.

It is more than just a fashion line that car-

ries the latest trends and hottest styles. It is a

statement. You simply cannot dress in a piece

from Frills & Foosha and expect to blend

into the background. And once you turn to

Frills & Foosha there is simply no going

back – you will never again be able to walk

into those numerous stores that overwhelm

the malls and get the joy you once did from

‘ordinary’ mass produced clothing.

The latest fashion line to take the region

by storm is the brainchild of two determined

young ladies whose desire for originality led

them to trek the globe in search of emerg-

ing designers and creative designs. Some

might describe the two entrepreneurs, Sara

Al Pachachi and Joy Kotran as fashionable,

identifying rising trends and having an eye

for unique clothes and accessories. Others

&A new name in affordable fashion hits the GCC

frillsfoosha

COLUMN

63JUNE 2009

might say that they are saviours, making the

dullest dressers more dazzling in exceptional

pieces. The truth is they are, as their fashion

line is, a mixture of all of the above. Their

success comes from how similar yet different

they are from one another and when you put

two different, fashion forward fashionistas

with an eye for style you get something as

remarkably breathtaking as Frills & Foosha.

One brings out her femininity by combining

soft and bold colours and mixing and match-

ing, revolutionising otherwise dull pieces to

something extraordinary that makes every

head turn and converts the most grounded

fashionista green with envy. The other, mixes

hip with laid-back to create a casually chic

style that merges together several trends in

what one can only describe as exceptional.

“We’ve always been into fashion, constantly

looking for pieces that look ‘different’ and si-

multaneously, reflects our individual styles,”

says Sara of their style.

STRONG DESIGN ELEMENTSThe concoction of bold yet subtle, distinc-

tive but conventional and nonchalant yet

refined brings out the best features in each

woman who wears their line. It offers the

transformation from effortlessly chic to el-

egantly sophisticated. It is virtually impos-

sible to be bland when dressed in Frills &

Foosha. The transformation is not about the

clothing itself, but what it also represents.

Nobody wants to go unnoticed and with to-

day’s fashion, it is rare to see someone who

looks effortlessly fashionable. Moreover, a

woman needs to wear her clothes and not let

her clothes wear her. This is what makes the

brand what it is. Each woman can keep the

style she is most accustomed to, be it hippie

or rock-chic, but what Frills & Foosha does

is adjusts that style to make it appear more

interesting and remarkable. With Frills &

Foosha a t-shirt is not just a t-shirt. It is an

identity tag that states who you are, what

you like and how you are different. Confor-

mity is not permitted.

Women love fashion. Therefore, ideally

when one wants to turn into an entrepreneur,

opening a new store is the most sought-after

business. Yet, as one store after the other

opens, one after another also closes down.

Some of those women might be trendy. Oth-

ers might be business oriented. Very few are

both. Instead of opening a store, the ladies of

Frills & Foosha organized a one-day fashion

event to launch the pieces they had gathered

for the Summer Season 2008. Welcoming

guests with bright cocktails, pink muffins and

strawberries dipped in chocolate, the modish

crowd were lost for choice as they browsed

through the array of dresses, shirts, kaftans,

sandals and jewellery from ‘Saluhi’. Describ-

ing the inspiration for their launch, Joy com-

mented, “We wanted to present our collec-

tion in an intimate environment in order to

meet our customers and gauge their feedback

around the pieces and their price tags.

“The first event went really well and since

last June, we have organised at least four

more fashion ‘days’ between Bahrain and

Dubai, to showcase Winter and Spring col-

lections from Regional and International

emerging designers we’ve carefully hand-

picked. We have picked up very positive

feedback from our customers so far and we

still have a long way to go in terms of fulfill-

ing our long-term ambitions,” continues Joy.

In parallel, the pair have set up a Facebook

group which they constantly update with

new arrivals from their selected designers.

Moreover, Frills & Foosha currently plans to

keep its fans on their toes, and will soon be

launching ‘Frills & Foosha’ designed by the

pair themselves.

THE COLLECTIONOther than the staggering collections the

line holds, Frills & Foosha’s sensation is

about the experience. Offering one-on-one

assistance, a browse through the collection is

like having the luxury of a personal shopper

if desired. No one knows fashion more than

those ladies and their helpful manner means

that they are always ready to assist with top

tips, insider’s advise and worthy recommen-

dations, be it through a visit to the launch of

their season’s collection or by sending a mes-

sage through their Facebook page.

Being as business conscious as they are

fashion intelligent, Frills & Foosha has suc-

cessfully adapted to the fluctuating economy.

Credit crunch? Do not fret. The misconcep-

tion that the only affordable trends are ones

that are mass-produced can be put behind

you. Both the top end and reasonably priced

trends can be found in their collection and

as the economy becomes more challenging,

Frills & Foosha have upped their efforts in

tracking down pieces that give designer ap-

peal without the designer price tags. “To be

honest, we grew sick and tired of walking into

boutiques with over inflated price tags and,

on the other hand, walking into stores that

mass-produce their clothes. We felt there

were no shops ‘in the middle’ of the price

scale, whereby we would be able to purchase

items that were not only unique and excellent

quality but also affordable,” explains Sara.

So ladies, there you have it! Instead of

having to bounce from one mall to the oth-

er and jet around the globe in search of the

must-have items of the season, the ladies

of Frills & Foosha do all the hard work for

you. The only effort you need to exert is to

attend the launch of their season’s collection

or simply visit them online on Facebook to

see what is in store and the good news is

that their Summer Season 2009 collection

is ready to hit your shelves this month… all

you need to do is keep an eye out for them

on Facebook.

MANAGEMENT

64 JUNE 2009

orYour

YourLIFE?

MONEY

BIG takes a cue from the ongoing economic crisis and checks out the inspirational aspect of life that is now seen developing around the world.

This was what highway robbers used to de-

mand. We mean the ones that used to ride

horses in the olden days. Which do you value

most: your money or your life? TV and news-

paper coverage of the world financial crisis at

present would lead you to believe most peo-

ple are opting for the money. Terrorism, cli-

mate change, droughts and warfare are being

pushed aside in the rush to beg for mercy at

the shrine of the stock exchange.

Now don’t get us wrong. We don’t mean

to belittle the seriousness of the situation. The

crisis is causing very real, life-changing prob-

lems to many people and to their dependants.

We did however say life-changing, not life-

threatening. Some of you may still argue with

that too. If you don’t have the money, what

value is there left in life?

MANAGEMENT

65JUNE 2009

GETTING SERIOUSThat’s where we believe the situation really

gets serious. The day we put money at the

centre of life is the day we stop valuing the

natural wealth stored within the authentic

self - the inner person we are, have been

since birth and will continue to be until

death us do part. That’s the person who is

the source of:

Æ personal growth, satisfaction and lifelong

desires.

Æ passions that drive potential, store within

a unique mix of natural-born skills,

abilities and talents.

In the last couple of decades or so, hu-

manity has had to come to terms with dra-

matic changes, stresses and pressures to per-

form. It has been made easier by the ready

availability of money to buy almost anything

we want. The sudden loss of that money

availability - and the need to pay back loans

- has reminded us that happiness and finan-

cial wealth are located on two entirely differ-

ent life paths.

Personal values have become vague and

uncertain in deference to the politics of eco-

nomic rationalism in which everything is

measured by the dollar.

VALUE PROPOSITIONSThey say good comes out of all ills. We are

increasingly hearing positive, human re-

sponses to the financial crisis:

Æ Deciding to love the person they are, no

matter what money they have.

Æ Philosophical reflections that life goes on

no matter what,

Æ Appreciating more what they have, rather

than what they would like.

One of our known persons, who owns a

very successful business, has developed what

he calls a minimalist approach to life - enjoy-

ing the fact that, within himself, he has ev-

erything he needs, irrespective of any impact

the financial situation has on his business.

This isn’t a debate on which is right - fi-

nancial worth or self worth. It doesn’t seek

an either/or answer. It’s about respecting

the fact that success is found from within,

utilising all the resources - natural and

material - at our disposal. It’s about re-

specting the dignity and worth of human-

ity - self and others.

We come into the world with nothing and

we will leave it the same way. It’s what we did

along the way, not the money we spent, that

others will remember after we’ve gone.

"Personal values have become vague and uncertain in deference to the politics of economic rationalism in

which everything is measured by the dollar"

COLUMN

66 JUNE 2009

By: Leila Belpaz

DAY OR NIGHTWhen the alarm goes off early in the

morning do you have the urge to smack the

snooze button and if you had the energy to

throw the alarm altogether out of the win-

dow? Or, as soon as you hear the first ring

off the alarm jump out of bed, rush to make

your coffee as you brush your teeth? Some

people have trouble waking up in the morn-

ing and function best when the sunsets

whereas others have their burst of energy in

the early hours of the morning.

THE AGE FACTORTo a certain extent whether you are a day or

night person is related to age. At a younger

age one gets used to staying up late, watch-

ing television, going out partying or simply

pulling all-nighters studying for an exam.

In turn it becomes a daunting task to wake

up early in the morning and so, sleeping in

late becomes inevitable and mornings are

COLUMN

67JUNE 2009

wasted. At an older age, the reality of life

sinks in and it becomes difficult not to put

daytime into effective use. Habit comes to

play, and getting used to waking up in the

morning for work translates into waking

up early during the weekends too and get-

ting things done. It also means that staying

up late becomes a daunting task and nights

become shorter.

Yet, it is not only about age or habit.

Whether you are a day or night person is also

a reflection of your personality. Some people

are ‘busy bees’ who wake up early because

they have a lot to accomplish each day be it

running errands or reaching self-fulfilment.

Putting aside home duties, someone who

enjoys golfing, gardening or diving cannot

postpone such activities until the evening.

They are early-rise activities which require

early morning energy, dedication and com-

mitment. Someone who is a night person

will not be bale to commit to such activities

due to the lack of energy or joy waking up

early brings. On the other hand, the same

person who enjoys waking up early will not

find the energy nor the excitement to stay up

until early morning hours listening to trance

music in a crowded club.

RESCUE EFFORTSWhilst one can be both a morning and a

night person, it becomes quite draining. To

combat this, caffeine comes to the rescue.

For the night person, coffee is the morning

eye opener whereas for the morning person

energy drinks provide the burst of energy to

stay awake at night. So yes, you can be both,

but do you want to be? During university

days you often have the choice of sleeping in

late and scheduling your classes for the af-

ternoon. After that you are doomed to suc-

cumb to the working life that does not have

mercy on night people. You have to wake up

early, you have to stay alert and you have to

continue that lifestyle until retirement.

Does that mean that being a night per-

son is a disadvantage? Traditionally, daytime

is when everything functions normally, flow-

ers boom, cows graze and people work. Once

the sun sets, the workers rest, the cows sleep

and the flowers close. To change that is to

change science and the essence of existence.

Yet, manmade products are now required to

keep things functioning as they normally

should and to alter areas which are required

to function alternatively. It is not just about

caffeine. Late night television shows, restau-

rants that stay open until midnight and clubs

that do not open until midnight all contrib-

ute to changing the normal hours assigned

ing person. If you are expected to put in long

hours in the office, have a social life outside

office hours and also have quality time to

yourself, being able to function just as well in

the evening is also necessary. Not being able

to puts a day person in as much disadvantage

as a night person during the day.

CONCLUSIONAdaptation and flexibility is the key to main-

taining a healthy lifestyle. A balance between

day and night is necessary. The truth of the

matter is, sleeping time is becoming shorter

and waking time longer. Working hours are

pushing into rest hours and in turn leisure

time at night pushes into work time. Inevi-

tably, the world works in wonders and some-

how balances itself out.

for being awake and for being asleep.

Why is it that as humans advance, the

need to make life more stressful increases?

If we were to advance as nature intended,

everybody would be asleep by 8 p.m. which

also means that there are less hours in the

day to be stressed and worried. Yet, for some

reason, technology, globalisation and city

life require that nature be changed. And so,

morning becomes night and night becomes

day. Some people can cope with the changes

whilst others are left to struggle.

Are you a morning or day person? A

morning person would praise himself for

having the energy to function during the

normal early hours without struggling. Yet,

as evening life becomes more demanding it

might not be an advantage to just be a morn-

CAR REVIEW

68 JUNE 2009

The last time we test-drove a car that turned bad with the touch of just one single button was the Maserati Gran Turismo. You would have thought that the four-doored model would be a little more, well behaved for the sake of exuberating panache and poise. But thankfully that is not the case. The all-new GT S is as shamelessly vocal in its display of sporting heritage as its GT sibling…and about time too.

TRIDENTTHRUST

CAR REVIEW

69JUNE 2009

Even before we get into the list of what’s

been changed and what’s not, we’d like to tell

you about the star feature of this drive- the

“Sport” button - we mentioned about in the

first line of this article. Press it and the GT

S becomes…erm…a GTR?!. Literally in the

bat of an eyelid, the engine, gearbox and ex-

haust get their brains rewired and the exhaust

valves open up to give out the throatiest roar

ever heard in the sedan kingdom. Not only

is it loud, but it is so gloriously tuned you’d

instantly want to chuck out that audio system

and put your windows down to grasp in every

last decibel it emits!

SEX APPEALOverall the car hasn’t changed much from

the exterior. The Pininfarina boys who de-

signed this baby knew that they had created

a perfectly sculpted shape that outshone all

their Mercedes, BMW and Audi competi-

tors. There was simply no need to perfect,

perfection! What you have here is a sort of a

David Beckham amongst the likes of say…a

Wayne Rooney, Rio Ferdinand or Michael

Carrick! Its not that the others are bad at

what they do, it’s just that Becks is the per-

fectly chiseled one, of the lot. All he needs to

do now and again, is re-invent himself, say

by…erm… changing his hair-dos, adding on

a few tattoos, a few rings and chains and the

job is done. Although there’s only one thing

which he can’t re-invent himself and that’s

his voice – which is where the GT S really

manages to break the comparison mould!

So instead of getting the human equiva-

lent of re-invention, Masareti gave its GT S

a new black grille with concave vertical fins

instead of a hair-cut, revised headlights and

a pair of oval exhaust tips instead of the tat-

toos and 20inch wheels to make up for the

rings and chains. To be honest the Quattro-

porte has now been completely perfected as

the most sinister looking plutocrat sedan

on the road.

DESIGNER INTERIOROn the inside too, the ergonomics have re-

mained quite the same, although it looks as

through Giorgio Armani had something to

do with the refurbishment. Everything…

or most things to be precise are upholstered

in leather and suede. Whatever else that re-

mains can be dressed up in Carbon fiber or

something called Titantex. Our car came

splashed in a red and black theme and it was

an absolute stunner. Our only qualm was

with the steering wheel’s suede wrapping,

because past experiences with suede wheels

have shown that long term reliability can be

a bit of a problem as sweaty palms and con-

stant movement over suede can lead to an

eroded surface and color.

The only thing we had a bit of an issue

with was the legroom space. For a six and a

half foot driver the car falls a tad bit short

when compared to its Teutonic rivals. The

trunk space too is a bit congested as much

of the cockpit has been crammed into the

rear shell of the car. You can blame the lay-

out of the car for that, with its V8 engine

significantly behind the centerline of the

front wheels where it intrudes on the cock-

pit, although it does deliver the 49 percent

front/51 percent rear weight distribution

that delivers superior dynamics on the road.

POWER LUSTMany people keep asking if the power plant

is a Ferrari V8 and our answer to that riddle

is; the GT S employs a version of the 4,691cc

V8 featured in the Quattroporte S and Gran

Turismo S coupe which is Maserati’s ver-

sion of the same V8 engineered by Ferrari

for use by Alfa Romeo, Ferrari and Maserati.

This means that Ferrari had come up with

the tehcnology but Maserati is building its

own units now! Tweaks to the engine man-

agement system and a new exhaust have

helped liberate an extra 9 horsepower, so

the total output is now rated at 434 hp at

7,100 rpm and 361 pound-feet of torque at

4,750 rpm. When you engage the exhaust

system’s Sport mode, the V8 is extraordi-

CAR REVIEW

70 JUNE 2009

narily loud, especially on the final ascent to

the 7,200-rpm redline. Expect your neigh-

bors to either applaud or swear under their

breaths when you drive by.

Also gone are the days when you would

be scared to hold a hot drink and use the

paddle shift in a Maserati. This glorious en-

gine has found a soul mate in the six-speed

ZF-built automatic transmission. The hard-

ware is familiar — Jaguar and Aston Martin

use the same system — but it’s been tuned

for Maserati. In Drive, the shift action is ef-

fortlessly smooth, or you can slot the lever

into manual and make use of the shift pad-

dles mounted on the steering wheel.

For the 2009 Maserati Quattroporte Sport

GT S, the transmission really does deliver

only manual operation in manual mode. Ap-

parently Ivan Capelli, the ex-Ferrari F1 driver

now employed as a Maserati test driver, once

had a huge accident when a BMW automatic

transmission shifted up a gear, so he insisted

on full manual control for the Maserati trans-

mission. In manual mode, the gearbox will

neither kick down nor change, even when the

engine is on the rev limiter. It feels better for

it, and the way the system automatically blips

the throttle for quicker downshifts is nothing

short of brilliant

“”

Maserati is happy to admit that the Sport GT S is a clear step beyond the Quattroporte and the Quattroporte S and will only appeal to its more enthusiastic customers

CAR REVIEW

71JUNE 2009

overall it is evident that Maserati is coming

on to its own and has finally stepped out of

the Ferrari shadow.

Having said that the Quattroporte Sport

GT S is more like a Ferrari than previous

versions of the sedan, being a little more

focused on performance its predeces-

sors. Among all the premium sedans that

you might spend something more than

BD50,000 upon, the new GT S remains the

eccentric choice, but while your rational be-

ing will lean towards a BMW or Mercedes,

your creative brain and masculine side will

ache for the Maserati.

on the new launch control system and this

car will scurry to 100 km/h (62 mph) from

a standstill in 5.1 seconds, which is 0.3 sec-

ond quicker than the Quattroporte S. Top

speed climbs 3 mph to 177 mph.

THE TRIDENT REVIVED!In terms of sales Maserati broke its all time

sales record last year when the company

raked in a cool $93 million dollars in profit

selling 8,586 cars. Now the turn-over won’t

raise too many eye-brows in the car indus-

try – Chrysler apparently loses more money

then that during coffee breaks annually. But

Maserati is happy to admit that the Sport

GT S is a clear step beyond the Quattro-

porte and the Quattroporte S and will only

appeal to its more enthusiastic customers.

The ride is predictably firm, but it never

felt truly harsh, even on the city streets and

back roads of Manama. Instead, you get a

remarkable level of control. Quit honestly

no other 4,387-pound sedan feels this re-

sponsive to the helm or disguises its mass

with such grace. At times, it feels more like

an M3 then an M5. Fact is, this not a sport-

ier version of a luxury car; but it’s a genuine

sport sedan. And it is genuinely fast. Lean

COMPANY HISTORY

72 JUNE 2009

Nerves of Steel

Formed in 1974 as the first integrated steel

plant in the Arabian Gulf, Qatar Steel Com-

pany (QSC) commenced commercial pro-

duction in 1978 only to later become a wholly

owned subsidiary of government of Qatar.

The plant consists primarily of four units:

1) Direct Reduction 2) Electric Arc Fur-

nace 3) Continuous Casting & 4) Rolling

Mill. With its latest production technology

and equipment, the plant generates an an-

nual production of 1.2 mn tons of molten

steel and a rolling mill capacity of 740,000

tons per year. The total workforce of approxi-

mately 1,250 comprises 12 different nation-

alities. With the exception of the office staff,

the mill is run on a 3 shift system.

Qatar Steel Company gained a reputation

as a manufacturer of first class products. Its

product quality is tailored in accordance with

International standards. The product is sup-

ported by an effective and reliable delivery

and after sales service. Its proximity to the

GCC countries enables it to supply a size-

able portion of the regions' requirements, as

well as Qatar's own domestic need.. Today,

the company is widely recognised as a fore-

most leader in the steel industry, extending

its pioneering commitment from an ex-

pansive mill site located in the heart of the

progressive Mesaieed Industrial City - 45

kilometers south of Doha. The company also

operates a UAE based subsidiary - Qatar

Steel Company FZE.

Inspired to meet the growing demand

for steel in Qatar as well as the region, QSC

has embarked upon a series of initiatives

aimed at increasing its production capacity.

The ongoing modernisation and technically

advanced expansion projects are designed

Contributing effectively to the country’s diversification programme, Qatar Steel Company has successfully demonstrated how strategic thinking can yield consistent results. BIG takes a look at the company’s history and brings to you the making of a steel giant.

COMPANY HISTORY

73JUNE 2009

to produce world class products, which will

further enhance the company’s presence in

the world of steel production.

Plant facilities have come to include a

Midrex process based DRI/HBI Combo

Mega Module, Electric Arc Furnaces with a

Ladle Refining Furnace, a Continuous Cast-

ing plant and Rolling Mills with the latest

automated features. Other auxiliaries include

well-equipped Jetty facilities, a Main Power

Substation, Quality Control Center, Mainte-

nance Shops and facilities for sea/fresh water,

compressed air, natural gas and a Clinic.

Presently, its Qatar plant along with its

offices occupies an area of 707,000 sq. me-

ters, adjacent to which is a further 375,000

sq. meters plot reserved for future develop-

ments. The total employee-base of over 1,650

spans 12 different nationalities and the mill

runs on a three-shift system.

In his recent message Sheikh Nasser

Bin Hamad Al Thani, Director & General

Manager at QSC, said: “Having taken steps

towards pre-empting the growing demand

for steel in the region, our expansion proj-

ects are in full swing and will bring our

annual production of DRI to 2.3 million

tons, molten steel production to over 1.5

million tons and rebars to over 1.5 million

tons in Qatar. Similarly, substantial invest-

ments have been made in Dubai to increase

production of existing wire rod mill from

180,000 MT to 240,000 MT and re-bars

from 50,000 MT to 300,000 MT through

installation of a new bar mill.

As a premier player in the region’s steel

industry with ambitious growth plans in a

competitive market environment, we have

embraced the task of re-branding ourselves

externally and internally, in order to pre- 2001 2002 2003 2004 2005 2006 2007

MT

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

Billet Sales (2001-2007)

"Qatar Steel Company gained a reputation as a manufacturer of first class products. Its product quality is tailored in accordance with

International standards"

pare for all our future endeavours. Through

the promise of making steel matter, Qatar

Steel will continue to strive not only to

maintain but enhance its reputation by a

process of continuous improvement in ev-

ery area of its operations.”

FACILITIES IN DUBAIQatar Steel Company FZE was estab-

lished in August 2003 to meet the grow-

ing demand for high-quality steel wire-rod

products within the GCC as well as in in-

ternational markets.

The company operates two primary fa-

cilities at its 60,000 Sq. meter Jebel Ali Free

Zone site: An upgraded Wire Rod Mill

with an installed capacity of 240,000 metric

tonnes [MT] per annum and the present Re-

bar Mill with an annual capacity of 50,000

MT. The latter is soon to be replaced by a

modern new Bar Mill from VAI–POMINI

with a 300,000 MT capacity.

Rebar Sales 2007

UAE20%

Saudi Arabia12%

Bahrain4%

Oman1%

Kuwait1% Qatar

62%

UAE

n

COMPANY HISTORY

74 JUNE 2009

2001 2002 2003 2004 2005 2006 2007

MT

1,000,000

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

Rebar Sales (2001-2007)

EXPORT

DOMESTIC

572,604144,839

552,552188,501

526,657230,842

442,432339,100

221,921603,925

488,606751,833

556,123914,768

1974 Qatar Steel was established as a

joint venture between Qatar

Government (70%) and two

Japanese Companies – Kobe Steel

(20%) and Tokyo Boeki.

1981 Qatar Steel achieves one million

tonnes production for DR, EF,

CC & RM.

1985 Qatar Steel acquired 1SO9002

Certification.

1997 Qatar Steel was fully owned by

Government of Qatar.

1999 Qatar Steel achieved ISO 14001

Environment Management

Certification.

2001 Qatar Steel achieved GCC

Environmental Award for best

company among GCC for

implementing Environment

Standards and Measurement.

2002 Qatar Steel won accreditation to

ISO 14001 Environment

Management Programme.

2003 Qatar steel achieved 15 million

tonnes production of molten steel

and billets.

2008 Qatar Steel marks 30th

Anniversary.

MILESTONES

ronmental contribution is centred on diffus-

ing dust emissions, which to a large degree

are the results of technology utilised in the

1970s. The revamping of its dust collection

system in the existing facilities is within the

scope of these projects.

As a part of waste management, QSC

continues to study various options to re-

using / re-cycling its production waste.

Palletising DR product dust and EF dust,

recycling of Refractory bricks and extract-

ing iron from slag are some of the pro-

grams under progress. The utilisation of

used tyres as a carbon source in the steel

melting process is an achievement in the

right direction. This project may be able to

contribute to solving or reducing a major

community waste problem.

ENVIRONMENT MANAGEMENT Unlike scrap based steel plants facing prob-

lem of emissions of heavy metal and toxic

chemical, environmentally QSC has big ad-

vantages compared to many other plants in

this business. The most significant advantage

is that Qatar Steel’s production is based on

DRI which uses clean raw material. An Ex-

ternal accredited laboratory has confirmed

Qatar Steel’s very low levels of heavy metals

and dioxin emission.

In addition to spearheading our environ-

ment friendly expansion plans, the com-

pany’s Environment Section coordinates

various projects with internal departments

under an Environment Management Pro-

gram. The company’s most significant envi-

Sh. Nasser Bin Hamad Al Thani, Director & GM at QSC exchanging agreements

COLUMN

75MAY 2009

Suhail Algosaibi owns several businesses including Radical Marketing Consultancy, a marketing consultancy specialising in small and medium sized businesses. For more information visit www.RadicalMarketing.com. This site offers you a FREE marketing email course and a FREE 9-page marketing report entitled “The Top Ten Marketing and Advertising Mistakes Business Owners in The Gulf Make – And How to Avoid Them.”

I’d like to remind you of the Radical En-

trepreneur’s secret to effective marketing.

Quite simply, it’s relationships. People pre-

fer to buy from someone they know, like

and trust. So our job as entrepreneurs is to

develop a relationship with our customers.

And it’s hard to develop a relationship with

our customers without revealing what we’re

really like. Basically, we have to show them

our personality.

Using personality in marketing can even

be viewed as a competitive advantage. Think

about it. Most businesses use dry, stodgy,

brand advertising with just one or two catch

phrases, right? Their basically all just copy-

ing each other. There’s an opportunity for

you to stand out using some personality in

your marketing.

Legendary American entrepreneur Victor

Kiam is a great example of using personality

in marketing. In 1979 he bought the Reming-

ton Electric Shavers company, and a couple of

years later featured himself in all it’s television

advertising. He famously told viewers: “I liked

the shaver so much, I bought the company.”

The ads were so simple and low budget - they

were filmed in his office bathroom - yet ex-

tremely effective, they doubled the company’s

market share in just a few years.

So How do you develop personality in your marketing? Just follow these seven tips:

KEEP THE GOAL IN MIND DON’T BE OVERLY ENTERTAININGLook, the overall goal is to increase sales of

your product or service, not to entertain them.

So use humour wisely and don’t over do it.

AVOID BUSINESS SPEAKFor example don’t say “we provide integrat-

ed marketing solutions to our client base”,

instead say “we work hard to increase your

Hardcore, unadulterated, grassroots marketing and business advice from Bahrain’s most outspoken entrepreneur.

Suhail G. Algosaibi, MBA, MCMI, AP

sales and profits and to make you happy!”

Most businesses try way too hard to sound

intelligent, you can stand out by speaking

plain English (or Arabic for that matter).

Trust me, not only will you stand out, but

your customers will love you for it.

SHOW YOURSELF!Look, no one likes a faceless, emotionless

corporation, so why are you trying to act like

one? Show your picture in your marketing

and talk directly to your customers and pros-

pects. Don’t be a bore, be like the aforemen-

tioned Victor Kiam.

USE “I” INSTEAD OF “WE”Don’t say “we offer high quality products/

services that meet the highest international

standards”, instead you could say for exam-

ple “I stand by my product/service! In fact

I’m so confident that you’re going to love it

that you can try it FREE for 30 days! And

if you’re not totally and completely satisfied,

just bring it back with no questions asked!”

Which of those two statement do you think

will get more attention?

OPEN UP AND SHARE YOUR LIFEIn your frequent communication with your

customers (through newsletters, emails,

blogs and other social media) share your

personal stories with them. Don’t just talk

about your company and products, but talk

about your kids, pets, interests and other in-

teresting things that happen to you.

PROFESSIONALISM IS OVERRATEDLook, I think every business should be ex-

tremely professional in what they do, but

don’t confuse being professional with being

boring. Lighten up! There’s a business-to-

business company in the US that manufac-

tures industrial fans. Their name is Big Ass

Fans (www.bigassfans.com) - really, I’m not

kidding. Their logo is a donkey (ass). One of

the tabs on their website reads “we may be a

little silly but we are serious about fans.” An-

other tabs says “Genius Not at Work.” This is

an extremely successful company by the way.

GIVE OUT FREE INFORMATION AND EDUCATIONAL TIPSIn my newsletters I’ll often share self-

defence and fitness tips (my main areas of

business). I’ll relate that to a specific story I

may have heard in the media, or an incident

that happened to me, and when appropri-

ate I’ll link this to my businesses. Your cus-

tomers and prospects will appreciate and

respect you for it.

That’s all for today my friend. Now go

ahead and implement these X tips and see

your sales soar! If you’re nervous about it

start slowly, and over time do more as you

get more confident.

IN MARKETINGPERSONALITY

76 JUNE 2009

1. SAMSUNG SMXC10 CAMCORDER

The new Samsung SMX and

SMX-C14-C10 Camcorder

bright red, slickly curved accents

in their cases has been released.

Recently announced two

hypertext image stabilisation,

2.7-inch flip-out display

230,000 pixels, Samsung

and Active Angle Lens, for a

“choice”-angle Shooting.

2. HP CONCEPTS BY NIKITA BUYANOV

Bored of grave blacks in

the name of laptops? Nikita

Buyanov has designed concepts

of laptops with innovation

and style that floors – for

Intel/Hewlett Packard. In the

concepts developed mainly in

3ds max (VRay) with some

photoshop corrections, she has

proved her point.

4. APPLE’S NEXT GENERATION IPOD

Apple will add cameras to its

next-generation iPod and iPod

Touch like iPhone. Moreover the

future iPhone models will retain

the handset’s existing shape and

size. Apple’s new line of iPod

touch and iPod nano players

will be launched in September

this year and will with video

recording capabilities.

3. DATEJUST 36MM BY ROLEX

Rolex reveals the Rolex Datejust

36mm. The simple steel watches

with white gold bezel carry a

fine elegance that is as simplistic

as it is elegant. Also available

with yellow gold bezels, the

Datejust 36mm is named so

because of the 36mm case that

has a background in lush soft

pink, silently declaring ‘lady’.

1 2

Lifestyle

3 4

Check out the latest gadgets and a host of other things for fast moving executives

77JUNE 2009

LIFESTYLE

5. CESARE PACIOTTI’S “BECKHAM SHOES”

This sequined eccentricity has

18 karats gold details. Cesare

Paciotti’s “Beckham shoe” is

a strong lace-up shoe, made

of hand stitched paillettes and

with 18 karate gold details.

It is a perfect combination

between classical and eccentric,

with a British style to translate

Beckham personality.

6. MONT BLANC’S TIMEWALKER

The case of the chronograph

measures 43 mm in diameter.

The captivating visual

characteristics of the model

are coupled with supreme

functionality. The standard

chronograph functions are

clearly displayed in red gold on

the black dial protected by the

domed sapphire crystal.

7. NUNO TEIXEIRA’S

TURBILLION

Portuguese designer Nuno

Teixeira has designed an

innovative cooler that lets even

the most demanding user work

on laptop without interruption.

“Turbillion,” the cooling system

comes with three powerful

yet silent fans that keeps your

laptop protected from high

internal temperatures.

8. SAMSUNG ULTRATOUCH

As the newest flagship edition to

the Ultra range, UltraTOUCH

is a truly beautiful full-touch

mobile, boasting revolutionary

touch screen technology,

sophisticated design packed with

multimedia features. Centre

stage is the 2.8” AMOLED

anti-scratch full touch screen,

which offers vivid colours.

5

7

6

8

2 JULY 2008 BIG MAGAZINE

A OINTMENTS

BAHRAIN: Manara

Developments, a

Bahrain-based real estate

development company,

has recently appointed Dr.

Hasan Al Bastaki as its

Managing Director, in line

with the company’s business

vision and growth plans.

Manara Developments appoints Managing Director

BAHRAIN: Bahrain Telecommunications Company

(Batelco) has announced a number of recent executive

management appointments. The 6 Bahrainis who have

been promoted are Ms. Muna Al Hashemi to the post

of GM Consumer Division, Mr. Adel Daylami - GM

Products & Services, Mr. Hamza Ali - GM Product

Development & Strategy, Dr. Abdulla Al Thawadi - GM

Enterprise & Government Business, Mr. Mohammed

Bubshait - GM Fixed Network and Abdulhamid Chehab

- GM Mobile Services.

Batelco announces new Bahraini appointments

BAHRAIN: The Royal College of Surgeons in Ireland

- Medical University of Bahrain announced the

appointment of Professor Sameer Otoom as Dean of

RCSI Bahrain.

RCSI Bahrain appoints new dean

UAE: Iomega International SA,

an EMC company and a global

leader in data protection, recently

announced that Mr. Cizar Nazeeh

Abughazaleh has been appointed

as Regional Sales Manager,

Middle East, Africa and Turkey.

Iomega hires Regional Sales Manager

UAE: Lenovo, a worldwide

specialist in the PC market,

recently announced the

appointment of Mr. Ali Al

Amine as the company’s the

new Regional Transactional

Business Director.

Lenovo expands Middle East team

UAE: McLaren Automotive

has taken the first step in

developing its global business

by appointing Mr. Ian

Gorsuch as Regional Director

of Middle East and Africa.

McLaren Automotive appoints first regional chief

UAE: The Sheraton

Abu Dhabi Hotel and

Resort has announced

the appointment of Ms.

Rejana Muci as Complex

Director of Six Sigma.

Sheraton AD appoints Rejana Muci

UAE: Barclays PLC (Barclays)

recently announced the

appointment of Mr. John Vitalo

as Chief Executive Officer

of Investment Banking and

Investment Management (IBIM)

for the Middle East.

Barclays appoints CEO

UAE: Dell has announced

the appointment of Mr. Dave

Brooke as General Manager

for Dell Middle East,

demonstrating its continued

commitment to the region.

Dell ME appoints new GM

UAE: Tecom Investments, a

leading developer of knowledge-

based business clusters and a

member of Dubai Holding,

announced the appointment

of Mr. Yasser Zeineldin as the

Chief Executive Officer of

eHosting DataFort (eHDF).

Tecom Investments names new CEO

UAE: Vacheron Constantin,

the world’s oldest Swiss

watchmaker in continuous

operations, has recently

announced the appointment of

Mr. Yassin Tag as new Brand

Manager for Middle East and

Indian Subcontinent.

Vacheron Constantin appoints new Brand Manager

QATAR: Ms. Brenda Julia Le

Moine has been appointed as

Director of Residences for the

pre-opening of the Marriott

Executive Apartments Doha

City Center in Qatar.

MEADCC appoints Director of Residences

UAE: Holiday Inn Dubai, Al

Barsha has appointed Mr. Reda

Moukthar as General Manager

to drive the property forward

and to make use of his vast

experience in the hospitality

field to cement the reputation

of the brand’s fantastic new

property in Dubai.

Holiday Inn Dubai appoints GM

UAE: Dana Gas PJSC, the Middle East’s first and

largest private-sector gas company, has announced

the appointment of Mr. Ahmed Al-Arbeed as Chief

Executive Officer (CEO) of the Company.

Dana Gas announces new CEO

UAE: Circle Oil Plc, the international oil and gas

exploration, development and production company

appointed Mr. Ramadan Aburawi to its Board as a non-

executive director with immediate effect.

Circle Oil Plc appoints Ramadan Aburawi

3 JULY 2008 BIG MAGAZINE

UAE: GAC Shipping has

further strengthened its

Marketing team for China,

Hong Kong, Taiwan and

Macau by appointing Mr.

Clarence Chan as its Senior

Marketing Manager, Shipping

Services, for Greater China.

GAC Shipping strengthens China marketing team

UAE: The flagship 5-star

Sheraton property in Dubai,

Sheraton Dubai Creek Hotel

and Towers recently has recently

appointed Mr.Susan Nisbet as

its new Sales Manager.

Sheraton Dubai Creek appoints Sales Manager

KUWAIT: UGB has

announced two senior executive

management promotions to

Assistant General Manager:

Mr. Amine Fehmi, Head

of Financial Institutions &

Marketing and Mr. Hussain

Lalani, Chief Financial Officer.

United Gulf Bank announces AGM promotions

UAE: JWT Dubai has recently


Mr. Rabi’ Sweidan as their new

Managing Director.

JWT Dubai appoints Managing Director

EGYPT: Global Investment

House announced recently the

appointment of Mr. Mohamed

Abdelsalam to head its private

equity funds business in Egypt.

Global Investment House appoints new partner

UAE: National Central

Cooling Company PJSC

‘Tabreed’, the Abu-Dhabi

based utility company

announced that it has

appointed Mr. Sujit S. Parhar

to the position of Chief

Executive Officer.

Tabreed appoints new CEO

OMAN: BankDhofar one of

the fastest growing Banks in

The Sultanate of Oman, has


Mr. Faisal Hamad Al Wahaibi

as the Assistant General

Manager - Retail Banking.

BankDhofar appoints Assistant GM

UAE: Dubai Islamic Bank (DIB) announced recently the

appointment of Mr. Saad Zaman as the Chief Executive

Officer of DIB Capital, a full service investment bank

offering Capital Market, Syndications, Advisory, Asset

Management and PE products / services based in the

Dubai International Financial Centre.

Dubai Islamic Bank appoints CEO

UAE: Tanmiyat Group, a

Middle East developer and

investment company, has

appointed Dr. Marwan Ibrahim

Alahmadi as the new Chief

Executive Officer of the Group.

Tanmiyat Group appoints CEO

KUWAIT: Equate President

and CEO Hamad Al-Terkait

was retained for a second

term as the Vice Chairman

of Gulf Petrochemicals and

Chemicals Association’s

Board of Directors.

Equate President and CEO retained

UAE: Dana Gas PJSC has

announced the appointment

of three new members to its

Board of Directors, Sheikha

Hanadi Nasser Bin Khaled

Al Thani, Mr. Abdullah Ali

Almajdouie and Mr. Nasser

Mohammed Al Nowais.

Dana Gas announces appointments

EGYPT: Mr. Hamed El

Chiaty, Chairman and CEO

Travco Group, was appointed

as a member of the supreme

Council for Tourism.

El Chiaty appointed in Tourism Council

Amadeus Gulf appoints new Director of Sales

UAE: Amadeus, a global

leader in technology and

distribution solutions for the

travel and tourism industry

has appointed Ms.Ghislaine

Elmadi Merhabi as the

Director of Sales to drive

market share in Abu Dhabi

and Al Ain.

UAE: Mr. Leo Holli has been

recently appointed by Towers

Rotana Dubai team as the new

Director of Food and Beverage.

Towers Rotana Dubai appoints new Director

QATAR: Oxford Business

Group (OBG), the highly

acclaimed global publishing,

research and consultancy firm,

has recently appointed Ms.

Marjan Okhowat as Qatar

Country Director.

OBG appoints Country Director

UAE: Abu Dhabi Media

Company, one of the fastest

growing, multi-platform, media

organisations in the region, has

appointed Mr. Frank Mooty as

its Chief Financial Officer.

AD Media Company appoints CFO

KSA: GolinHarris Public

Relations has recently

appointed Mr. John Badenhorst

as its new Managing Director

at their Jeddah office.

GolinHarris Jeddah appoints new MD

Mr. Len Hunt, a veteran auto industry executive has been

appointed Group Director, Automotive, Al-Futtaim and

charged with leading the Dubai-based family owned

business into an era of heightened expectations in the

region’s auto industry.

Hunt heads Al-Futtaim Automotive

LAST PAGE

80 JUNE 2009

Grumpy, are we?BIG takes a satirical look at the present business world.Something insidious happens as men

get older. The world as seen through the

prism of popular culture continues to be

dumbed down. Stupid seems to have be-

come mainstream. This appears to have oc-

curred both in general and business society.

We offer the following for you to judge.

CEOs and their executive teams who pre-

side over share prices which fall, are involved

in scandals, or are sold on to private equity

firms because the executive team cannot get

sufficient value out of the assets are given bo-

nuses on top of extremely high salaries.

Politicians not only get away with plausible

deniability, but seem to believe that it is a le-

gitimate tactic in executing their responsibil-

ity to spend our individual money to build a

collective future society for our children, bet-

ter than the one we were born into. Promises

become core promises and non-core promises.

The truth becomes what people believe is the

truth, not necessarily what is the truth.

People who would be lucky to have a se-

rious following of friends, gain national and

international notoriety based on actions that

would have had them arrested or ostracised

from a society with reasonable morals.

Buzz words dominate business. “Going

forward” is used as a phrase relating to time

used instead of next month or next year, a

minimum of ten times in a morning tele-

vision business news report. If they can do

the opposite of going forward in time, then

we would really be listening. Phrases which

confuse rather than inform become the

norm, for example, “People” becomes “Hu-

man capital”, “Employees” becomes “Associ-

ates” and organisations “Push the envelope”.

Athletes who can perform their particu-

lar skill at a higher level than most others

and are paid astronomical salaries to do so,

become a protected species if they lose their

way and succumb to repeated use of drugs,

both legal and illegal. Compared with the

“man in the street” they get repeated chances

for redemption before the law is applied.

Leaders prefer to pretend that they are

like us; so as not to scare us and possibly

lose our support. They do not see their

role as envisioning and building a better

future, persuading us along the way by the

force and logic of their idea. Rather they

want us to see them as their mates, liking

them and supporting them as evidenced

by opinion polls.

People do not want to take responsibil-

ity for their actions. There is a preponder-

ance of declarations to an ever increasing

social media that “the government must do

something”. Not about issues which can

only be tackled at government level, but

about issues over which we have individual

control; for example, obesity. Current af-

fairs and news programmes rarely inves-

tigate anymore, settling for entertainment

or opinion pieces dressed up as “balanced

reporting”. Only later do we find out how

much of what should have been a neutral

exposé of what actually happened, was

heavily laced with staged filming and opin-

ion to create a newsworthy scene.

New words are created where perfectly

good ones existed. Our favourite is “celebu-

tante”, meaning: A person of high society

and wealth who’s famous just for the fact of

being rich and fabulous; A socialite who is

“famous for being famous”. We would have

thought “shallow” would have done in the

same context.

It seems as though there are a great

many people out there who are not only

dissatisfied with being the best version of

who they can be, but are willing to also set

up their children’s life from birth as one in

search of difference over excelling. Now,

we don’t know whether we are more like

Drucker or Kotler, but we do feel better,

getting that off our chest.

BIG June Issue

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Transcript of BIG June Issue