Mrs. Sheila Gittens at The Global Business...

Spring/Summer 2012

OffshOre TechnOlOgy cOnference 2012 MecAcc DOOr KnOcK 2012 ABcK gAlA

ABcK & The Us chAMBer Of cOMMerce The glOBAl MeThAne InITIATIve (gMI) & KUwAIT

Mrs. Sheila Gittens at The Global Business Conference

Travel

Texas

FG Synergy is a consortium of three distinct yet entwined business opportunities targeting the food service industry, primarily in the MENA region. The three business verticals are: • Distribution, • Franchise, • Special Projects.FG Synergy’s key business initiative is to provide end to end supply chain services to include contract logistics, warehousing & distribution, freight management and inventory management. Our objective is to establish FG Synergy as the distributor of choice in broad line, specialty and systemic distribution channels of branded product lines in the MENA region

Premium Choice Distributors is the Online distribution arm of FG Synergy that represents a one stop shop distribution model, providing an entire gamut of end to end supply chain solutions currently focused on Premium US food products (center of the plate meat & seafood items).

DistributionExplore new business opportunities in food and non-food market segments by developing a ONE STOP SHOP distribution model that provides the entire gamut of end to end supply chain services under one roof.

Establish FGS as the distributor of choice in broad line, •specialty and systematic distribution channels of branded product lines

Become the major sole source distributor for a large segment •of the franchise market regionally and then globally Establish foot holds for future business in emerging markets•

Position ourselves as a service provider of choice in regional and emerging markets by growing a scalable service business that can rapidly and efficiently respond to market demands while providing significant benefits and opportunities to our customers, suppliers and stakeholders.

FranchiseFrenetic lifestyles with increasing westernized habits as well as large customer base with high per capita food consumption provide numerous opportunities in this market segment within GCC and MENA region. FGS will rope in recognizable fast food brands which includes but not limited to superior logo, quality, name and reliable service associated with the brand and product.

Western Breakfast & Lunch Concept•Western Style Philly Sandwich Concept•Mexican Foods•Chicken Concept•

Special ProjectsExplore business opportunities with definite scope and timeline that can leverage full line food and non-food distribution expertise. United Nations project opportunities in MENA region

Establish commercial supply chain to/from emerging •markets; Afghanistan & IraqFranchisor in Afghanistan•Emerging Markets •

Publications CommitteeFred ShuaibiGae Lyn Anderson

Editor-in-ChiefAmerican Business Council, Kuwait

Managing EditorGae Lyn Anderson

ABCK Board of DirectorsGregg Stevens (Chairman)Scott Beverly (Vice Chairman)Fred Shuaibi (Secretary) Lionel Gittens (Treasurer)Gae Lyn Anderson Tarek Al MoussaLabeed AbdalEric LangBrian FreemanJassim QabazardLuis Suarez Jafar Behbehani (Honorary)Isabella Cascarno (Ex-Officio)

ABCK Executive DirectorMuna Al [email protected]

ABCK Executive AssistantMeera [email protected]

ABCK OfficesSalwa-Block 11, Street 7, Building 15 (Pillars Apt. 2)Telefax: (965) 2563-4042Mobile: 6698-4999Website: www.abckw.org

Design and LayoutA T M Rahman Mahin

Printed byAl Assriya Printing Press Publishing & Dist. Co. W.L.L.Tel : +965 22423543 / 22423583 / 22433532Fax: +965 22420364E-mail: [email protected]

The Correspondent is the quarterly magazine of the American Business Council-Kuwait. The content or opinions expressed in the Correspondent are not necessarily those of the publishers or ABCK. While every effort is made to ensure the accuracy of the contents of the Correspondent, no liability can be assumed by the publishers or ABCK for any inaccuracies.

Cover : Spring/Summ

er 2012

Advertisers’ Index : Spring/Summer 2012Premium Choice Distributor IFCQ8 Realtor 6FDC 19UNITED 21American United Group 25

Citi Bank 27NOC 41Travel Guard 48Basic Organic Pet & Feed 49KGL Holding BC

MEssAgEs Chairman’s Message 3 Publication Committee 5 MissiOn stAtEMEnt 2Us EMBAssy ROw ABCK & the US Chamber of Commerce 7 Global Employment Initiative (GEI) 37gEnERAL MEEtings 27th Annual ABCK Gala 8 1st Annual ABCK Business Summit 10 Environmental Safety in Kuwait 12

The New Labor Law in Kuwait 14COnfEREnCE Sheila Gittens at The Global Business Conference 16 Offshore Technology Conference 2012 18sPECiAL EvEnts The Global Methane Initiative (GMI) and Kuwait 20 MECACC Door Knock 2012 22sPECiAL fEAtUREs Citi Celebrates International Women’s Day 26 Building your own Library 29 Expatriates and the Legal System in Kuwait 34 DOING Business in Kuwait 35intERviEw Hertz: Technology driving growth in the GCC 28 DARNOFA: Building Business Management and Leadership Skills 32vOLUntEER Kuwait Dive Team 30 Agility: A CSR Leader in Kuwait 38BUsinEss American brands 36 Kuwait Offset Program and the National Offset Company 40REPORts MECACC 2012 DOOR KNOCK OVERVIEW 50 FATCA UPDATE 56sPORts 11th Annual ABCK Golf Tournament 42tRAvEL Texas: Happy Trails in the Lone Star State! 44 Travel Insurance gives you that Peace of Mind 48ABCK BOARD Of DiRECtORs 58CORPORAtE MEMBERs 60ADvERtisE in ABCK 61ABCK MEMBERsHiP APPLiCAtiOns 62EnviROnMEntAL fOCUs gROUP MissiOn stAtEMEnt 64ABCK CALEnDAR Of EvEnts & fOCUs gROUPs: 2012 IBC

The Correspondent Magazine is Issued FREE by the ABCK

22 MECACC Door Knock 201218 Offshore Technology Conference 2012

Mission StatementABCK

The American Business Council Kuwait (ABCK) is a non-profit organization dedicated to the promotion and development of American business and American business interests in the State of Kuwait.

ABCK strives to promote better awareness of American businesses, products, and services in Kuwait.

ABCK provides a forum for American businessand business interest and advocates the enhancement of the business climate within the State of Kuwait.

ABCK seeks to proactively promote an understanding of the challenges and issues facing American business interests operating abroad.

Mission sTaTeMenT

American Business council - Kuwait Magazine | summer 20122

Chairman’s Message: Gregg stevens

Dear members and friends of ABCK:

Springtime in Kuwait always allows for new ideas and fresh

experiences. This springtime has certainly proven to be that

for our ABCK membership.

In mid February, we observed our 26th Anniversary and

had our first Business Summit! We were very pleased to

have VIP’s from the governments of Kuwait and the US

and business community join us for these two memorable

events in ABCK’s history. HE, the Ambassador of the

United States to Kuwait and Mrs. Matthew Tueller honored

us with their presence, which gave them an opportunity

to visit with old friends from past assignments to Kuwait

and from around the world. We are very grateful to them

and the members of the Commercial Section of the US

Embassy for their continued support. With the rebuild of

the Radisson Blu and the advent of a Business Summit,

we chose to move our venue to the Marriott Courtyard

and the Al Arraya Ballroom in downtown Kuwait City.

As with any new venue, there was a learning curve. The

attendance at both events was “sold out” with participants

appreciative of having the opportunity to celebrate both

our anniversary and the opportunity to renew friendships.

Based on the energy that came from the Business Summit,

many follow up meetings have been planned and we look

forward to enhancing this opportunity for the coming

year!

I want to thank the US Department of Defense for their

support at our Business Summit and inviting the ABCK

to join them for their Vendors Conference. Col. Robert

Cheatham, Commander ASG Kuwait and Col. Mike Rogers

along with their very able staffs made both events highlights

for the Defense Business Community.

The Environmental Focus Group has really taken off with the

visit of senior members of the Kuwait EPA and the US EPA

visiting with the members of this group. Brian Freeman and

his group continue to provide us with insight to the needs

of Kuwait and business opportunities for those members

who are involved with issues of the environment.

The Golf Tournament was once again well attended with

record numbers! As in years past our sponsors made

this event a memorable occasion for the players and

Ambassador Tueller honored the winning teams. We are

very hopeful that the participants in this event that are

not ABCK members will join us either as Corporate or

Individual members.

The Commercial Section of the US Embassy organized

the “Kuwait Delegation” to the Offshore Technology

Conference in Houston, Texas. It was an wonderful

opportunity for me and fellow Board Member, Tareq Al

Moussa, to network with other members of the delegation,

interested companies in the US and Kuwait Oil Company

executives. As a part of the events, the Bilateral US Arab

Chamber of Commerce held a very impressive reception

honoring leaders from throughout the Middle East and

North Africa. More on the conference is in the following

pages of the Correspondent.

Fred Shuaibi went to the MECACC annual Door Knock in

Washington, D.C., where over 175 members of congress

were visited by the Door Knock Delegation. Fred will report

to us the outcome of the status of the new FACTA law,

trade issues discussed, and the continuing conversation

concerning US Tax Status for expatriates. A dinner was

hosted by the US Chamber of Commerce where the efforts

of Lionel Gittens, our Treasurer, were recognized by the US

Chamber in fully recognizing the ABCK as an AmCham with

full member credentials. More on this will soon appear on

our website.

Springtime and summer in Kuwait is also a time for change

in our board and representatives of the US Government. We

bid farewell to Isabella Cascarrano, our Senior Commercial

Officer. Isabella has been a wonderful supporter of ABCK

and has served on the board as the Embassy’s “ex officio”

MessaGe

AMerIcAn BUsIness cOUncIl - KUwAIT MAgAzIne | sUMMer 2012 3

MessaGe

member. Other departing board members are Tareq Al

Moussa, President of MRC, and Eric Lang, Director of

Supply Core. I look back on the contributions of both these

men with admiration for their business accomplishments

and wish them well in their future contributions to our

community in Kuwait. Eric’s leadership with the Defense

Focus Group and Education Group has been superlative

and will be a difficult act to follow by the new leaders of

these groups.

We are all looking forward to our annual elections meeting

at the US Embassy on May 29th! With seven very capable

candidates, this coming year will bring new ideas and new

opportunities for the board I am certain. Whether a board

member or not, members of ABCK are encouraged to take

on leadership roles in our programs and focus groups. In

the coming year, the board will reach out to members to

lead and participate. If you have a desire to be a part of the

very successful programs of ABCK, I encourage you to step

forward.

Many thanks go out to Gae Lyn Anderson and the staff

at KGL for this magazine and their work on creating our

new look! As with all volunteer organizations, it is always

challenging to pull together articles, ads, and items of

interest. We encourage you to use this vehicle to “tell your

company stories”. It is widely distributed both in Kuwait

and US, so let us know of the accomplishments of your

Kuwait teams. It would be great to hear about individuals in

your companies who we can highlight as well! Our Kuwait

companies are doing a great job in promoting US brands

and we are always thrilled to hear of your experiences

going on in the Kuwait community.

Special thanks to Labeed Abdal for taking on the leadership

role in developing our website! It is a work in progress

and I highly encourage everyone to take the time to visit

often. Changes are made often and important information

concerning Kuwait Government Tenders is part of weekly

updates. During the coming year, we will see many new

additions to the website and are hopeful that we can make

it a premier destination for the “web surfers.” Check your

links to make sure that we have your current information!

In the coming summer and New Year, I am very hopeful

that our corporate member companies and individuals will

invite more individual members to join us. Our American

citizens in Kuwait are all welcome to join us and it is a

perfect venue to get to know our Kuwaiti hosts.

No Chairman could be more proud of the contributions

that our very capable staff provides to us in planning and

executing our programs and membership pursuits. Kudos to

Muna Al Fuzai in bringing our membership numbers to new

highs and to Meera Ibrahim for pulling together the many

coordination items that go into making us so successful.

Since this will be our last issue of the Correspondent prior

to the holy month of Ramadan, I wish all the joys and

blessings that Ramadan brings. Ramadan Kareem and Eid

Mubarak!

Sincerely,

Gregory J. StevensChairman


ediTorial

Summer is quickly approaching, and I must say this has been one of the loveliest springs I have experienced in my 7 years in Kuwait. The temperatures were cooler than usual and I have enjoyed driving around Kuwait admiring the lovely residential (and commercial) architecture and landscaping (which I believe is some of the best in the Middle East) as I listened to Frank Sinatra, Barbara Streisand, Kenny G, and Mantovani. This relaxing music has enhanced the view even more with the greener grass, trees, and gorgeous flowers in bloom everywhere these past 3 months. Many have commented to me they don’t remember a more lovely spring in Kuwait, as we have all enjoyed taking a break from the heat. In the USA at this time of the year, we “spruce up” our homes, clean up our yards, and invite friends and family to enjoy the warm evenings with us at annual outdoor cookouts. There was one cotton-farming family in my community who hosted an annual 4th of July at their lodge, after divulging in too much food, we then played volleyball in Greasy Creek to work off some of the calories. It was great fun falling down in the shallow water as we went in for that “slam dunk” to make a point for our team. It amazes me how much food, music, publications, movies, fashion, interior design, art, and landscaping – the creative arts industry – are very much an important part of our lives. This reminds me, hope you will enjoy the new face of the ABCK magazine, Correspondent, which is the collaborative efforts of KGL, Al Assriya Printing, and the ABCK Board of Directors and staff, too many to name here, so thanks to all of you. The creative arts industry has produced many entrepreneurs, who teach us “how to” efficiently and effectively. These are the skills which make us sought after and “marketable,” even in economically stressful times, good ol’ American ingenuity.

In the USA at this time of the year, we have 3 very important National holidays that come one month after the other: Memorial Day, the last weekend in May, is to remember those men and women who have made great sacrifices for America; Flag Day is on June 14; and, of course, most Americans’ favorite, the 4th of July celebrating our Independence. These are the times that most of us gather with our family and friends to enjoy the summer picnics, barbeques, and take advantage of the good weather before cooler days in the fall and snow and ice in winter. It is also the time of the year that we are reminded of the great sacrifices of those who came before us who have made it possible for us to enjoy what we have today: a nation that provides innovation, motivation, and inspiration to many in the world through our diversity, creativity, persistence, and enterprising entrepreneurial spirit. We are also reminded of our great US Constitution (hope you enjoy the picture of it with Mrs. Sheila Gittens on the front cover on her recent trip to DC) which states we have the right to “life, liberty, and the pursuit of happiness.” I believe we must be the only nation

in the world whose Constitution states we have the right to pursue what makes us happy, without causing intentional hurt or harm to others, of course. How wise our forbearers were to include happiness as a qualifying factor equal to life and liberty. According to psychology’s Subjective Well-Being (SWB), happiness is one of the qualifying factors of a good life.

Each summer when home for the annual vacation, I look forward to watching Paula Deen, the Barefoot Contessa, Giada, Emeril Lagasse, Bobby Flay, and others on the Food Network Channel to gather some new recipes to try out on my family. It is fascinating how people have used their entrepreneurial spirit to create an effective and efficient use of our desires for delicious food, gorgeous architecture, and landscaping and other areas of home appeal and human interest not only to entertain, but have also managed to turn it into a profitable business. These are some of the things I love about the American “pioneer spirit,” how we take simple skills and develop it into a business. Paula Deen’s story reminds me of my family when my mother tried to start her own catering business in DC and I used to make sales calls for her when I was in high school. My mother has prepared meals for the Robert Kennedy family and Sergeant Shriver family in the DC area; Bob Considine, who was a columnist for the New York Times, in New York; and the Kings Ranch in Texas among others. We had troops in our home at Christmas, and people from Embassy Row in DC at Thanksgiving. My mother thought it was important to share our holidays with those who were not able to be with their families at these times. It would be wonderful if some of the terrific chefs on the Food Network were to do a show for our troops, I am sure they would love some of “Mom’s (and Dad’s) home cooking.” Whoever said that America does not have its own cuisine and culture has not ever eaten stuffed turkey, collard greens, pumpkin pie, barbeque, Mississippi Mud Pie, cornbread, Baked Alaska, or a Texas steak!

These ideas of free enterprise, entrepreneurial motivation, and inspiration from others success stories, have opened the way for women and men to pursue countless opportunities for progress, professional development, and personal profit and gain. We are a nation founded on ideals, innovation, and motivation developing them efficiently and effectively. It is part of why Americans are sought after from creating business strategies to developing business opportunities. I believe we are living in a golden age of elegance from food to fashion…and true elegance is simple and classical…keep up the good work, enjoy our National holidays, and may you have a pleasant summer vacation…

Gae Lyn AndersonManaging Editor

Publication Committee, ABCK Magazine

Food, the Flag, and Free Enterprise…


eMbassy row

The American Business

Council of Kuwait (ABCK)

is a US professional

organization operating

under the auspices of the

U.S. Embassy of Kuwait.

It acts an advocate for

American business interests

and American Companies

in Kuwait and recognizes

the importance of furthering

American and Kuwaiti

business interactions. Our

primary mission is to be

highly involved with the US

community in Kuwait to engage them with the local

Kuwaiti businesses here.

The ABCK is a member of the Middle East Council of

American Chambers of Commerce (MECACC) and a

member of the US Chamber of Commerce. However,

in early 2012, the ABCK Board of Directors under the

Chairmanship of Mr. Gregg Stevens took an active

role in reemphasizing their participation in the US

Chamber of Commerce. This task was actively followed

by Mr. Lionel Gittens, ABCK Treasurer, and presently

we are in the final stage of fulfilling all the necessary

requirements to be represented as AMCHAM-Kuwait.

However, the American Business Council of Kuwait

will continue to hold the title of ABCK, due to its past

history.

The US Chamber of

Commerce is the world’s

largest business federation

representing the interest

of more than 3 million

businesses of all sizes,

sectors and regions, as well

as state and local chambers

and industry associations.

Therefore, the ABCK has

chosen to be a part of this

organization to expose its

members to a greater front

in US businesses around

the world. One of the most

important information services provided is in connection

with trade inquiries received by the U.S. Chamber.

During the course of any one year, the International

Division receives hundreds of such inquiries. In this

context, expanding U.S. trade would serve as a valuable

reference for business information of all types.

The American Business Council of Kuwait will highly

benefit from its involvement in the US Chamber of

Commerce in receiving information on export-import

trade leads, business and Government contacts. It will

include participation in trade delegations and other

activities of the US Chamber of Commerce; and will

host an information center for custom duties, tariff

regulations, and discussion at higher official levels on

topics, such as the Double-Taxation Treaty.

ABCK & the US Chamber of Commerce

Lionel Johnson VP, Middle East Affairs

US Chamber of Commerce

Lionel GittensTreasurer

ABCK

Muna Al FuzaiExecutive Director

ABCK


General MeeTinG

27th Annual ABCK GalaFebruary 15, 2012

The American Business Council of Kuwait hosted its 27th Annual Gala at the Marriott Courtyard from 7-9pm. Welcoming remarks were made by the ABCK Chairman, Gregg Stevens; and The Honored Featured Guest Speaker was HE Ambassador Matthew Tueller of the US Embassy. Other honored guests included Ambassador Abdulla Bishara, Mr. Sulaiman al-Shaheen, and Sheikh Fawaz Salman al-Sabah. Mrs. Muna al-Fuzai, Executive Director of ABCK, made relevant business remarks in regards to the event, and introduced the cultural performances presented by LoYac, Kuwaiti young people who performed with gorgeous costumes, music, and contemporary and traditional choreography in celebration of Kuwait’s National Day and Liberation Day. The Switchback band performed later in the evening. The evening included a specially selected menu at this Black Tie/National Dress event with Kuwait dignitaries in attendance, more than 30 embassies represented in Kuwait, and over 150 guests. Exhibitors at the Gala included: DOW, Doha Bank, Labeed Abdal Law Firm, KGL, AGT, Marafie Kuwaitia, Global Freight, Media Box, and Posta Plus.


General MeeTinG

Business Summit: 1st Annual ABCK Business SummitFebryary 15, 2012

The 1st Annual Business Summit of the ABCK was held at the Marriott Courtyard on February 15 from 9am-2pm with lunch break at 12pm. Topics included: Defense with Mr. Anwar Jawdhar representing National Offset and Colonel Robert Cheatham, ASG-Kwt, which was facilitated by Scott Beverly of the ABCK Board of Directors. Panelists included PARC – LTC Bob Brinkmann and Maj Matin Crouse. Energy was facilitated by Mr. Sadak Hassan of KOC, who is a Petroleum, Oil & Gas Consultant, with the Featured Guest Speaker – Mr. Antoine Samaha of DOW. The Finance session was facilitated by Mr. Nadeem Shafi of Ernst & Young regarding the financial challenges in the current global economy. Panelists included: Mr. Ozgur Kutay, General Manager of Citi Bank and Mr. Ahmad Al-Mehza, General Manager of Doha Bank with the Featured Guest Speaker of Mr. Abdulaziz Al-Nabhan of Al-aja Holding Company. The Business session was well represented with a very informative power point presentation made by Eng. Jassim Qabazard of Qabazard General Trading and Contracting Company. His presentation was entitled: Doing Business in the State of Kuwait. The Guest Panelists for this session in-cluded: Ms. Natalie Baker who is Economic Officer at the US Embassy and also Isabella Cascarano, who is the Commercial Officer at the US Embassy. The event was very well attended with approximately 80 attendees who gave feedback that the event was informative, enlightening, and relevant for business professionals.


General MeeTinG

March ABCK General Meeting: Environmental Safety in KuwaitMarch 30, 2012

The focus of the March ABCK General Meeting was on the Environment. The event was held on March 30 at the Crowne

Plaza at 6pm in the evening, including a buffet dinner. The Featured Guest Speaker was Dr. Sami Yakoob, the Project Man-

ager at Kuwait Integrated Environment Management Support who spoke on Kuwait Environment Objectives and Strategies;

also on the agenda was Mr. R. David Dejohn, who spoke on Behavioral Based Safety, along with showing his video on the

same subject. He is the KOC Behavior Based Safety Project Manager. The evening was concluded with Bedoor Al-Shebli,

who is the Newair Project Manager at MRC Metal Recycle Company, who spoke on the importance of recycling in the State

of Kuwait. Mr. Brian Freeman, ABCK Board of Director, was the facilitator for the evening’s event. All the guest speakers

were given plaques of recognition for their efforts and thanked for their participation at ABCK.


General MeeTinG

April ABCK General Meeting: The New Labor Law in KuwaitApril 24, 2012

The April ABCK General Meeting was facilitated by Mr. Labeed Abdal, ABCK Board of Directors member. The Featured

Guest Speaker was Professor Jamal al-Nakas from Kuwait University, Law School Faculty, and also private law firm owner

who discussed the new Labor Law in Kuwait. Other Guest Speakers included: Mr. Taylor Partridge of the US Embassy in

regards to the coming elections to be held in the USA in Noember 2012 and the voting procedures of US citizens living

abroad. Mr. Michael Combrinck, the founder and editor of EEK!, the expat newsletter in Kuwait also spoke on the history,

purpose, and focus of his newsletter. Mr. Jeff Kvistad, who represented the Boy Scots of America, spoke on leadership and

participation in Kuwait of the Boy Scouts organization.

The meeting was held at the Failaka Room at the Radisson Blu on April 24 including a buffer dinner for over 50 guests.


In February, I had the honor of being appointed by US Ambassador Matthew Tueller to represent the US Business Community in Kuwait at the first “Global Business Conference” hosted by Secretary of State Hillary Clinton in Washington DC. On February 21 and 22, I was joined by representatives from over 120 countries including US business support organizations, US private sector executives, senior US Government leaders from the White House, Departments of State, Commerce, Treasury and Energy as well as the Office of the US Trade Representative, the Export-Import Bank of the US, Overseas Private Investment Corporation and the US Trade and Development Agency. The goal of the conference was to highlight how the US Government can promote US businesses abroad, a key point in President Obama’s agenda to accelerate American economic renewal, as well as to increase US exports, attract new investment to the US and to create American Jobs.

In Secretary Clinton’s opening address, she spoke of the importance of international trade and global investment and the roles they will ultimately play in the global economic recovery. “At the State Department ... we have worked to position ourselves to lead in a changing world where security is shaped in financial markets and on factory floors, as well as in diplomatic negotiations and on the battlefield. That’s why more than 1,000 economic officers in six continents are working with American companies, chambers of commerce, local businesses and local and national governments to open markets and find new customers. At the same time, we’re forming new partnerships with companies, universities, NGOs, and philanthropies to put private sector ingenuity to work solving some of our most difficult global challenges and driving sustainable development.” Clinton’s message also addressed many of the obstacles faced by internationally based US companies. “We recognize that for all the tantalizing opportunities of foreign markets, there are still significant obstacles that make it harder for American businesses. Some of these are familiar hurdles: corruption, red tape, outdated protectionist policies. But we are also confronting new challenges, like the so-called tollbooths that force unfair terms on companies just to enter or expand in a market, like forced technology transfers, government-abetted piracy of intellectual property, and preferential treatment for state-owned or state-supported enterprises. The United States is committed to a global economic system that is open, free, transparent, and fair. We’re pushing for reforms that allow more people in more places to participate in the formal economy – especially women, who represent enormous untapped economic potential but are still marginalized in many markets.”

Sheila Gittens atThe Global Business Conference

In closing, Clinton reminded the audience that “American companies today have the best, most productive workers in the world. They have the best technology, the most talented innovators. And many, many are sitting on large cash reserves. Foreign leaders often say to me, “Where are the American businesses? How come they’re not here competing for this construction contract or that mining deal? What are they waiting for?” As I’ve described today, this Administration is doing everything we can to help American companies, large and small, compete and succeed. But ultimately, we know it’s up to you. We can’t help you if you’re not hungry enough to get out there and compete for the business that is going to be available. So it’s up to American business leaders to hire, to train, retrain your employees, to invest, to support education in America - all of which are key factors in our future success, our innovation, the kind of economy we’re creating for the 21st century. But we also need you to take informed risks that have always been the key to success. We need to recapture America’s dynamism and sustain our global leadership.”

Also speaking at the opening ceremony was Mr. Thomas Donahue from the US Chamber of Commerce who pointed out that the goal to double US exports in the next five years is achievable but only by moving forward and thinking big, with aggressive policies and new partners. With over 300 active trade agreements around the world, Donahue reminded the gathering that to strengthen our economy in the US we need to advance our policies for commercial businesses in the international theatre.

Senior Advisor to the President, Mr. J Bryson joined the opening address and spoke about the actions they had

ConferenCe

Sheila Gittens and the US Constitution in Washington, DC


implemented in the President’s office to assist with the global recovery. He touched on areas such as new advanced manufacturing, tax code changes to encourage companies to build in the US, new trade agreements with India, and how all of these efforts would lead to new jobs.

The CEO of Boeing Aerospace was an invited member of the opening panel and spoke strongly about how the US must put into place policies that allow the US to be economically competitive with other governments and on how damaging sanctions without multi-lateral cooperation were in creating no-win scenarios for US companies reiterating Secretary Clinton’s statement that “We will not stand by when our competitors don’t play by the same rules.”

After the opening addresses, the conference moved on to several break out sessions targeting specific geographical areas and economic topics. I attended the session on Creating Effective Public-Private Partnerships, with panelists Kris Balderson, special representative for the State Department’s Global Partnership Initiative; Maura O’Neill, US Agency for International Development’s Chief Innovation Officer and Senior Counselor; and Laura Asiala, Director of Corporate Citizenship at Dow Corning. The session underscored the need to find new types of public-private partnerships, new mechanisms for sharing technology and new ways to align the private sector’s business interests with development goals. A SWOT analysis was conducted for us to determine strengths and weaknesses in different partnership models and determine the opportunities for the future. Much of the discussion focused on key geographical areas including Africa, East Asia and Pacific, Europe, Eurasia, South and Central Asia and the Western Hemisphere. The needs and opportunities in the Middle East were not a high priority to the panelists and little time was taken to discuss this emerging economical goldmine.

The second session I attended was focused on the US Government Sanctions Policy. The panelists for this session included Jose Fernandez, Assistant Secretary for Economic and Business Affairs at the State Department; Barry Carter, Professor of Law at Georgetown University; and Adam Szubin, Director of the Office of Foreign Assets Control at the Treasury Department. This session addressed the national security policies as related to sanctions and their effect on the abilities of US businesses to operate in the global market. Much discussion took place regarding the Iranian trade ships traveling to the UAE to purchase banned US goods for transport back to Iran stressing the point that without multi-lateral support, the sanctions have little true effect.

On the second day of the conference, the break-out sessions were focused on specific geographical issues. I attended the session targeting the Middle East and North Africa. The opening remarks for the session were given by Principal Deputy Assistant Secretary Elizabeth Dibble and focused on three key areas: facilitating business, promoting trade, investment and financing opportunities. During the

Respectfully submitted by Sheila GittensPresident of American General Trading and Contracting Co. W.L.L. (AGT)

session, I brought the panel’s attention to the needs of US businesses in Kuwait when I spoke about the detrimental effects of having limited representation or US Government support in Kuwait, about effects of the implementation of American standards on business practices in the country, and the need for both more exposure in the US for what US companies are accomplishing in Kuwait as well as financial support to assist funding opportunities for key US interests in the country.

The panelists presented a great deal of information in several areas and highlighted the moves the US Government was making to support internationally based US companies. The greatest benefit from the summit was in the networking I was able to do among the other invitees. Learning what impacts they were able to make on their local business communities, the inroads the various Business Councils/Chambers of Commerce were making in each country, and the goals and targets they were focusing on proved to be very informative. Several attendees mentioned that their organizations were setting up ways to enhance international employment opportunities of new college graduates by establishing internships in their overseas locations, an area that I suggest the ABC-K explore.

Overall the opportunity presented by the conference to discuss the impacts our business efforts can make on the global economic reform was rewarding. Each of us is capable of significantly contributing to the recovery in some way. As international business executives, and as Americans, we have a duty and an obligation to help lead, by example, and show the world the results of the true American entrepreneurial spirit. In closing, I wish to express my sincere appreciation to Ambassador Tueller for extending to me the invitation and for the honor of representing my fellow businesspeople at this global conference.

Secretary of State Hillary Clinton and the Vice President of the USA Joe Biden at the Global Business Conference


In 1976 I attended the OTC at the Astrodome in Houston and it could have easily been visited in a morning or afternoon with time to talk to every company and view their products and services. In 2012 there were over 11,000 exhibitors spread over an area 10 times the size of the original Astrodome area with companies and interested buyers filling every available hotel space within the 40 mile radius of the Oil Capitol of Texas, Houston.

Due to the great planning and support of the US Embassy Commercial Section led by Isabella Cascarano and the delegation organizer, Dina Al Shawa, the Kuwait Delegation represented a huge cross section of the Kuwait Oil and Gas Community. Among the delegates were ABCK Chairman Gregg Stevens and Board Member Tareq Al Moussa. New ABCK Corporate member Tareq Al Wazzan of Aref Energy also joined the delegation.

Others joining the group were Adel Abdul Aziz Aljasem, Asst. Undersecretary of the Ministry of Oil; Ahmad M. Al-Rasheed, Deputy Managing Director, Kuwait Oil Company; Mudhaf Al Mudhaf, MD, Alghanim International Oil & Gas; Faisal A. Ayesh, President, Alkhorayef; Khalid H Al Saif, MD, National Petroleum Services Company (K.S.C.C); Saud J. Al-Nashmi, Chairman and CEO, Ultra Horizon Company; Hassam Marafie, Chairman and MD, and Riyadh A. Edrees, Gas & Oil Field Services Company; Ahmad Saleh, Manager, Petroleum, Raith Engineering & Mfg Co.; Ahmad A. Dick, GM, Khuff General Trading and Contracting Co.; Shankar Chandramouli, Al Omar Center for G. Trading and Contracting; Saad Al-Ganbar, Chairman and Mohammed Meghani, VP, Oil and Gas Division, Joint Scentific Group-Kuwait; Mohammad J. Alqattan, VP, Business Development, Al-Dorra Petroleum Services; Adel Tarabay, Exec. Director, Oil and Gas, United

Gulf Enterprises General Trading and Contracting; and Amer Tabash, GM Projects, Al-Rashed Holdings.

The Commercial Section made everyone feel welcomed and informed concerning the events that were significant at the conference. Some of the “social activities” that were sponsored was a reception on Monday, April 30th given by the Bilateral US Arab Chamber of Commerce and a special dinner honoring the Kuwait Delegation sponsored by the US Embassy Kuwait-Commercial Section. While there was a lot of talk by those interested in Oil and Gas seminars and symposia being presented at the conference, members of the US Department of Commerce were very interested in information concerning upcoming trade delegations to Kuwait from the United States. On behalf of the ABCK, support for these missions and planning for meetings with our Kuwaiti members and friends was warmly received by DOC representatives in the Southwest US. More to come on this as the missions are formed and dates announced.

Hopefully, with the experience had by both our Kuwait friends in the Oil and Gas Industry, government representatives, and corporate members of the ABCK, the 2013 conference will be a target highlight of the educational and marketing year.

Tareq al-Moussa commented that the OTC was a huge success and was definitely worth the trip for him. Moreover, he stated, “I managed to establish some great contacts and found amazing technologies that can assist us here in Kuwait. I think we will be signing some cooperation agreements and will be doing some joint marketing agreements as a result of this trip.”

Respectfully submitted by Gregg Stevens, Chairman ABCK

ConferenCe

Offshore Technology Conference 2012Kuwait delegation of the OTC Conference in Houston at dinner at the Taste of Texas


environMenT

The Global Methane Initiative (GMI) and KuwaitABCK hosted an Environmental Focus Group meeting led by ABCK BoD, Brian Freeman, featuring guest speakers from the Environmental Protection Agency (EPA) in Washington, DC. The meeting was on May 9, 2012 at the Radisson Blu featuring Mr. Don Robinson of the EPA and Mr. Roger Fernandez. The Global Methane Initiative (GMI), a voluntary, multilateral partnership, targets emissions abatement, by recovering and using of the greenhouse gas (GHG) methane. Launched in 2004, GMI is the only international effort of its kind to specifically target methane. This is accomplished by focusing on five main sources of methane emissions: agriculture, coal mines, landfills, municipal wastewater, and oil and gas systems. GMI helps countries to recognize and achieve their potential for reducing methane emissions. Kuwait, being a major producer of both oil and natural gas, could stand to benefit greatly from a partnership with GMI.

After carbon dioxide (CO2), methane (CH4) is the most important manmade GHG, accounting for more than a third of total anthropogenic (manmade) climate forcing change at 14 percent of global GHG emissions. Methane is considered a “short-term climate forcer,” with an atmospheric lifetime of only 12 years. However, its ability to trap heat, called its “global warming potential,” is 72 times greater than that of CO2 when compared on a 20-year basis.

The production, processing, transmission, and distribution of oil and natural gas together form the second largest anthropogenic source of methane worldwide, releasing an estimated 1,600 million metric tons of carbon dioxide equivalents (MMTCO2e) of methane into the atmosphere in 2010.

Methane emissions in the oil and gas production sector often come from storage tanks. Storage tanks, used to hold both crude oil and gas condensate, can vent anywhere from 140 to 14,000 cubic meters (m3) of natural gas and light hydrocarbon vapors per day. GMI recommends installing a vapor recovery unit to capture the vented gas for fuel use or to be recovered into a gas sales pipeline. In the United States, one company installed vapor recovery

units on 9 tank batteries, which ended up recovering nearly U.S.$90,000 worth of natural gas per month!

Reciprocating compressors are another large source methane emissions. These compressors have a packing material around the piston shaft and are designed to leak a small amount of gas during use. Compressors with old packing can leak up to 80 times more m3 of natural gas per hour than compressors with new packing. Therefore, GMI recommends that companies monitor the gas leaking from these compressors and replace the packing when it becomes economically sensible.

At all oil and gas facilities, gas leaks and so-called “fugitive emissions” are inevitable. These emissions can result from old, corroded, or broken equipment. However, since natural gas is colorless and odorless, these leaks can often be difficult or impossible to detect with the naked eye. To combat these emissions, GMI touts its Directed Inspection and Maintenance (DI&M) program. With DI&M, companies use infrared (IR) cameras and other measurement techniques to identify and quantify fugitive and leaking gas emissions. Once leaks are identified, companies can repair the cost-effective leaks while enjoying favorable returns. DI&M programs can be tailored to any need, and the payback period is nearly immediate!

Don Robinson of the EPA and Roger Fernandez, both of Washington, DC with Brian Freeman, ABCK BoD member



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Introduction:

The Middle East Council Of American Chambers Of Commerce “MECACC” held its Door Knock 2012 during the period of , May 6th-May 11th, 2012 at Washington , DC. This timing was to ensure that MECACC’s message gets through to members of Congress before the 2012 elections eclipse the debate on Capitol Hill.

This year’s Door Knoc included the MECACC and the U.S. Chamber of Commerce jointly hosting a reception and dinner at the USCOC Headquarters. The event took place on Tuesday, May 8, 2012. The theme of the reception and dinner was “A Partnership Of Trade Between The G.C.C. And The U.S.” MECCAC honored that Deputy Secretary of State, Thomas Nides, who was the Keynote Speaker and Guest of Honor. Joining him at the podium was Congressman Mick Mulvaney (R-SC/5th), who discussed the legislation that could enhance trade, increase U.S. exports and create jobs in the United States.other noted speaker was Her Excellency Hoda Al Nuno, Ambassador of Bahrain to Washington. Opening remarks were made by Lionel Johnson, Vice President for Middle East North Africa Affairs of International Division at the US Chamber

of Commerce, and Anne Jafery, Chairman of MECACC. Additional members of the House and Senate were invited to attend. Also in attendance were Ambassadors from the GCC countries, additional U.S. dignitaries, and business leaders from major U.S. corporations active in the Middle East markets. The Kuwait Chapter was recognized at the event by the Mr. Lionel Johnson at the event.

MECACC Door Knock Daily Meetings

The MECACC Door Knock teams conducted over 200 meetings on Capitol Hill at both houses of the Senate and the House of Representatives. The meetings targeted members of key committess to present MECACC’s Door Knock issues,and these are as follows;

1) The SENATE

At the Senate the meetings, we touched bases with the following Committees;

• Appropriations Committee• Armed Services Committee• Banking Committee

reporT

MECACC Door Knock 2012Summary Report

MECACC GCC Delegation to Door Knock 2012


• Commerce, Science & Transportation Committee• Finance Committee• Foreign Relations Committee• Small Business Committee

2) The HOUSE OF REPRESENTATIVES

• Appropriations Committee

3) KEY CONGRESSIONAL COMMITTEES

• Armed Services Committee• Banking Committee• Foreign Affairs Committee• Science, Space and• Technology Committee• Small Business Committee• Ways and Means Committee

4) JOINT CONGRESSIONAL COMMITTEES

• Joint Economic Committee• Joint Taxation Committee

MECACC Door Knock 2012 ISSUES

Background:

MECACC Chairman, Anne Jafery, and the Capital Capitol Group “CCG” have worked very hard to solidify the Door Knock plans for 2012. Last year, MECACC conducted a Mini Door Knock towards the end of 2011. Since then CCG has conducted dozens of follow up meetings with the offices in which we were attempting to persuade and to become aware of our recent efforts. Thus, due to the failure of the Super Committee to reach any kind of agreement over the deficit, caused automatic tax increases and spending cuts that are slated to go into effect in January 2013. A great deal of discussion about tax reform is expected on the Hill as we head into the spring and summer. It is, however, unlikely that any comprehensive agreement can be achieved considering the divisions between the House, the Senate, and the Administration. In all of this positioning, there is some positive news -- Representative Dave Camp and the Ways and Means Committee are likely to soon issue a plan for international tax reform. The plan would seek to transition the United States from a worldwide system of taxation to a territorial system. This territorial based system will not just apply to corporations, but individuals as well. This gives MECACC a real plan to support during Door Knock in order to make progress with our lobbying campaign.This background information and findings prompted the selection of this year’s Door Knock lobbying campaign issues.

MECACC Door Knock 2012 Theme focused on:

AMERICANS ABROAD = U.S. EXPORTS = JOBS AT HOME

The above formula was used to represents issues related to the US local Economy, Employment, and Exports.

Door Knock 2012 issues were centered around the followings:

ISSUE 1: Protect and increase the foreign earned income exclusion”FEIE”

a) Trade Issues

The issues related here are aimed at pointing out that the Foreign Earned Income Exclusion “FEIE” is not brought as a tax issue, but rather as a trade issue and export increasing mechanism which leads to creating more jobs at home as an ultimate result.This issue is in line with the US trade policy related to export.This issue was presented to highlight the importance of Americans living and working abroad who definitely can increase export by promoting American products and services.The more the issue is presented to Congress the more likely it will have more chances to be recognized as a trade issue in the process, and this can make a difference.The Door Knockers sensed a change in reception during the meetings. The Door Knock support material that was presented at each meeting during the week long campaign was very informative and factual at the same time.

The US is the only industrialized country that taxes its citizens based on citizenship rather than territorial location. Other industrialized countries encourage its citizen to seek more jobs abroad to increase export. MECACC’s request was only for U.S. tax policies to be harmonized with those of our major competitors to promote exports and to create jobs in the U.S.

b) Competitiveness Issues

• The goal of U.S. trade policy is to harmonize international taxes and tariffs to promote a level playing field in international trade. This is the primary reason why the US does not levy a tax on product exports. However, our current tax policies on the foreign earned income of Americans working abroad are a tax on exported services which puts Americans at a significant disadvantage -- and damages our export competitiveness.

• The employment of each American overseas directly reduces the ranks of unemployed Americans. The issue was presented on the basis of how Americans abroad will lead

Fred Shuaibi with Congresswoman Jackie Speier and Christopher Johnson of ABCGR


to a significant change in exports, especially from the GCC Gulf Region.Thus, the FEIE presents another challenging issue to have Americans abroad to be competitive with others to be able to obtain jobs overseas which currently increases the number of employed Americans, and thereby assists in increasing exports, which can help to create jobs at home in the process. Thus, efforts of MECACC in this sense aims on behalf of its members to highlight their issues of concern. The meeting’s summary results showed that decision-makers who met with the Door Knockers have noted the competiveness issues as very valid arguments that are destined to find its way to a review of the US Tax and Export policies in view of the current local economy.

ISSUE 2: Repeal FATCA

Conclusion

• MECACC has informed the U.S. Congress about how this Act was “slipped into” the Hiring Incentives Bill of 2009 and was not properly reviewed; most in Congress were not even aware of the content of the law, let alone the implications.

• FATCA will significantly discourage foreign investment in the United States due to the threat of withholding 30% of their funds. FATCA will negatively impact U.S. businesses and American entrepreneurs operating in global markets; it has already turned American citizens into pariahs in MECACC, and they will support the repealing of FATCA based on the facts related to its process foreseen negative consequences in the future, and its impacts on trade, financial institutions, and individuals.

a) FATCA Background

• Starting in 2014 (moved from 2013), foreign financial institutions (FFI) will be required by the U.S. government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of U.S. citizens to the IRS. This law requires foreign financial institutions (FFI), such as your local bank, stock brokers, hedge funds, pension funds, insurance companies, trusts, etc. - to report directly to the IRS all their clients who are “U.S. persons” (citizens and green card holders living in the USA or abroad). The penalties for the institutions that do not cooperate are steep.

• FATCA also requires U.S. citizens who have foreign financial assets in excess of $50,000 (in some cases) to report those assets on a new Form 8938 to be filed

with the 1040 tax return starting in the tax year 2011. Instructions for form 8938 were published in December 2011.

b) MECACC Supports Repealing FATCA In 2012

• FATCA legislation will destroy the lives of the average, honest, and hardworking Americans no matter where they live. Reporting on foreign bank accounts, pension plans, annuities, and property just because you hold these assets overseas is discriminatory.

• Penalties for non-willful failure to report can quickly amount to $50,000 – this is what you could get for simply having “forgotten” to include something that the IRS believes qualifies.

• If this isn’t bad enough, think what will happen when foreign banks, insurance companies, and financial institutions begin refusing Americans as clients and divesting in U.S. securities. Foreign investment in the U.S. amounts to $21 trillion and $10.5 trillion of this is invested in U.S. securities. A KPMG survey indicates that only 36% of financial institutions will comply with FATCA leaving 64% considering divesting out of U.S. securities. If even a fraction of those foreign investors divest, the loss to the U.S. would be in the trillions of dollars. This at a time when the U.S. economy desperately needs more foreign investment, not less.

Conclusion:

The Door Knock 2012 campaign strategy was applied and meeting results were very encouraging based on presenting the two issues planned for the Door Knock. MECACC will conduct Door Knock follow-up on Capitol Hill through its Consultant CCG. CCG will inform MECACC Chairman of any development or issues that requires alarm to MECACC members. There will be certain follow-up initiatives or a mini Door Knock to pursue action as needed.

Summarized by: Fred Shuaibi from MECACC’s Door Knock 2012 Campaign.

L - Jenny Townsend of MECACC in

Washington, DC with Fred Shuaibi

R - Fred Shuaibi with Congressman

John Runyan of New Jersey



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Kuwait – On March 8th 2012, Citi

colleagues in more than 50 countries

participated in a company-wide global

commemoration of International Women’s

Day (IWD), an important celebration

of the economic, political and social

achievements of women worldwide.

IWD has been observed since the early

1900s and in 1977 the United Nations General Assembly

designated March 8 as International Women’s Day.

“Citi recognizes the vital contributions of women worldwide

and considers this day an opportunity to reinforce our

commitment to support female colleagues and clients on

their journey from ambition to achievement,” said Ozgur

Kutay, General Manager for Citibank NA Kuwait. “We value

the leadership and contributions of women throughout our

company and in our individual’s lives. We are also proud

to serve female clients around the world as they start and

grow businesses, build assets, and secure their financial

futures.”

To underscore the importance of women to Citi’s success,

Citibank NA Kuwait invited Dr. Samira Al-Saad, Founder &

Director of Kuwait Centre for Autism and Board member

of world Autism Organization, to share her experience as

a leader in the Kuwaiti community and to shed light on the

centre she established.

Citi’s IWD celebrations at Citibank NA Kuwait comprised

of diverse and enriching local activities. These included

distribution of a decorated glass of flowers,

a bundle of sweet chocolates, staff get

together lunch, and the day ended with

cup cakes distribution to all the women

in the office.

In connection with IWD, the Citi

Foundation will be at the United Nations to

announce its support for Calvert Foundation’s new Women

INvesting in Women INitiative (WIN-WIN)™, an effort to

invest at least $20 million in high-impact organizations and

projects worldwide that create opportunities for women

lacking access to traditional credit and funding sources.

The funding will make it possible for women borrowers to

build small businesses, improve their living conditions, and

invest in education and childcare in order to build more

stable and prosperous futures.

Citi, which recognizes diversity as a competitive

advantage and business imperative, has been recognized

for its comprehensive diversity and employee benefit

programs that foster professional advancement and offer

flextime hours, telecommuting, paid maternity leave

and employee assistance programs. Citi has more than

142,000 female employees located in more than 130

countries, 55 women’s groups globally, and 61 employee

networks and affinity groups in the U.S., Canada, the U.K.,

and the Republic of Ireland, including networks focused

on heritage (African, Asian, Hispanic, Native American),

military veterans, people with disabilities, women and

working parents.

Female employees stand with Dr Samira (7th from right)

Citi Celebrates International Women’s Day with 24 Hours of Global Events

CelebraTion


inTerview

1. Can you provide some background on Hertz, and in particular the Hertz International division?

Hertz is the world’s largest general use car rental brand, operating from 8,500 locations in 150 countries worldwide, with a wide range of makes and types in a global fleet of more than 500,000 vehicles.

Hertz also operates one of the world’s largest equipment rental businesses. Hertz Equipment Rental Corporation offers a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 315 branches in the United States, Canada, France, Spain, Italy, China and Saudi Arabia, as well as through its international licensees.

Hertz has a strong presence in the Middle East and Africa region, with a regional corporate office located in Dubai.

Hertz Kuwait is one of 11 franchisees operating a total of 66 locations in the Middle East. There are also 23 Hertz franchisees with 161 outlets in Africa, each offering a wide range of car rental and leasing services.

2. What significant progress have you seen in the car rental business over the past 10 years?

During this period there has been a major transition towards booking car rentals online and through call centres, especially in the more mature markets.

More and more people are now doing their research online and buying their products and services online, and this is a trend that will continue.

3. What is the strength of Hertz in the car rental industry?

Hertz is in its 93rd year of delivering quality car rental solutions to leisure and corporate customers. Product and service innovations such as Hertz #1 Club Gold, Worldwide Online Check-in, specially designed NeverLost® satellite navigation systems, and unique cars offered through the

company’s Prestige, Family, Fun/Adrenaline and Green Collections, set Hertz apart from the competition.

The Hertz brand is synonymous with the very highest standards in customer service, and in the Middle East and Africa, as around the world, we take great pride in maintaining the most modern and well maintained fleets available in the markets where we operate, offering a wide range of vehicle types to suit every individual requirement.

4. How has Hertz been affected in the current global economic situation?

There is still an element of caution as a result of economic factors, although we are now seeing more positive signs of renewed travel.

Obviously, the political imbalance in some markets has had an impact, and in this region the changing political landscape has made business environments like the UAE more attractive for corporations in terms of relocation or establishment of regional HQs. Saudi Arabia and Qatar have also been beneficiaries in this regard.

5. What are the significant changes you foresee in the car rental industry over the next 5 to 10 years?

Here in this region we are going to see a dramatic transition to online bookings. This is moving at a rapid pace because such a large percentage of the population is made up of young people who have grown up with social media and mobile applications which are driving growth.

6. Are there any major challenges in the car rental industry specific to the GCC, and what do you think will help to have a significant, positive impact on the car rental industry?

We don’t see any major challenges specific to the GCC region. In a positive direction, we expect to see a significant growth in business as a result of the increase in inter-regional travel, with the advent of low cost airlines making regional travel affordable to more people.

Technology driving growth in the GCC

Cristiana StefanRAC Manager, Hertz International

Raed Turjuman GM, Northern Gulf Trading Co. – Kuwait


In the ABCK office, there is a “members” library. These are books you can borrow, read, and return on the “honor system.” All of these books have been donated to ABCK by expats who were leaving Kuwait or just cleaning out items they no longer needed. There is a sign-out sheet at the ABCK office, so you can just browse the hundreds of books that are there, everything from business strategies to cookbooks for you to check out.

If you are ever in the Washington, DC area, I want to encourage you to visit the National Library of Congress. It is one of the most impressive libraries in the world complete with a bibliophile’s ambiance. One of the libraries I visited that was just a delight to my soul was the library at the Biltmore in Asheville, North Carolina. It resembles the typical old library of wooden bookcases and tables, leather chairs, and thousands of books. The house was built in 1895 by George Vanderbilt. Of course, most of the outstanding universities in the USA, such as Harvard, Yale, and George Washington in DC, have fantastic libraries.

Listed below are some books I highly recommend you add to your own personal library to read. One of the first jobs I ever had, I was assigned to work with an efficiency expert for one year, and what I began to learn from him, got me hooked on books on strategy.

Up the Organization by Robert Townsend •The Autobiography of Lee Iacocca •How to Stop Worrying and Start Living by Dale Carnegie •How to Win Friends and Influence People by Dale •Carnegie

The Power of Positive Thinking by Norman Vincent Peale •

books

by, Gae Lyn Anderson

The One Minute Manager by Ken Blanchard and Spencer •Johnson

Any book by Leo Buscaglia •The Road Less Traveled by M. Scott Peck, MD•Think and Grow Rich by Napoleon Hill•The Richest Man in Babylon by George Samuel Clason •The Celestine Prophecy by James Redfield•The Monk who sold his Ferrari by Robin Sharma•The Secret by Rhonda Byrne •8 Cousins by Louisa May Alcott (just delightful)•Ruth Hall by Fannie Fern•One Hundred and One Famous Poems compiled by Roy •J. Cook

Mistral by Frederic Mistral – won the Nobel Prize in •literature for recording the language of Provence in Southern France

Bibliophile is defined as one who likes to read, collect, and admire books. There is one gorgeous painting that I believe will describe me in retirement, The Book Worm by Carl Spitzweg in 1850 (just hope I don’t fall off the ladder). Some tips for selecting and reading books: choose from the genre you enjoy the most (ie: business, etc); create a relaxing area that is just for you to read (comfortable chair, table with lamp), and play some classical music, if you like. Remember to take notes, underline, and/or highlight information you like. Happy Reading!

building your own library and the

ABCK Library


inTerview

1. Can you provide some background on DARNOFA?

Well that should be easy since there is only a little bit of history to tell you! This company was recently formed as a partnership between my wife, Nouf Al-Shatti, (hence Nofa) and the DAR means something like a “villa” or “big house”. So in essence it is “The Big House of Nofa” but has a much nicer meaning in Arabic, so she tells me.

After living here for a little over two years, I realized that there were opportunities to deploy strong business management and leadership skills in Kuwait. In a lot of instances, I have found things move at a much slower pace than in the U.S. and companies with Western management have trouble adapting. So my idea in forming DARNOFA was to put the best of both worlds in one; the drive and determination from my military leadership and business management skills together with the local understanding, patience, and expertise of my business partner and wife Nouf Al-Shatti.

Our current operating areas encompass a startup cargo, courier, and freight forwarding company, a small packing and moving agency, and a security and investigation agency. In the future we look to move into the realm of logistics revolving around recycled products.

2. What significant changes have you witnessed in the business over the past 10 years?

In the past 10 years, business seems to have moved from a deep understanding of customer needs and wants to a more “pro forma” or “tick the box” approach. Today, the business model also seems to have moved to a “Profit before People” or “Win at any Cost” approach, which is unfortunate. Being

raised up my father used to tell me that a good deal was when both parties involved had their needs satisfied.

Customer satisfaction and service must be the most important part of business. It is, always has been, and always will be my belief that if you: 1) Focus on deep customer satisfaction; 2) Set goals to meet the needs of customer, your team, and the business; and 3) Work smart AND hard, then your product, your team, your company, will always come

from a place of positive energy, which will always result in a better product, service and company. I think that you will always succeed, at least in the long term, over companies that focus on fear, greed, or corruption, which are inherently negative.

If deep customer satisfaction, focus on meeting needs, and working hard is part of your corporate mentality, then you will win return customers and new customers by referral from your satisfied customers. Of course, you must also provide the best products and service you can and stand behind everything you do.

The great companies of the future will be those that follow these basic approaches. The most admired (and profitable) companies today like Apple, Google, Kuwait Oil Company, Chevron and others all follow these approaches. The Google’s and KOC’s of the future are small companies today, with a solid respect for their employees, their customers, and a love of doing the job or making the product the right way every single time.

3. What is DARNOFA’s strength?

Well I believe DARNOFA’s true strength comes from the owners and their mixed skills and knowledge. From what I have witnessed many companies are hesitant to enter into agreements with companies or partnerships because they have to, in essence, make an agreement with an unknown…That unknown is the Kuwait partner. In order to own and operate a business here they have to find, through due diligence and other processes, a person they can trust to enter into a partnership with.

I feel, what I can bring to the table, is a solid framework of trust, built on the network of military and civilian contacts I have come to know throughout my military service and professional career, and use that history to market myself

DARNOFA: Building Business Management and Leadership Skills in Kuwait

“DARNOFA’s true strength comes from the owners and their mixed skills and knowledge”


and my company as a viable option for U.S. Companies to use in order to formulate companies and partnerships within Kuwait.

Since my partner is my wife, and our company is tied together through marriage and business, I believe it gives us an advantage for doing business with American-based companies who value these factors and who can ultimately have someone to be held accountable. This business is the future of my family as well as myself and I understand it means performing in a way that satisfies the client as well as creates a profit and an environment for which my employees look forward to being part of everyday.

4. How has DARNOFA been affected in the current global economic situation?

One thing this recession has shown me is opportunity. I have seen an opportunity to do things better, smarter, faster and cheaper. That’s an opportunity unique to this downturn. I believe companies are coming to the GCC because there are real opportunities to grow and capture market shares that just aren’t available anywhere else. Kuwait and the GCC are growing and expanding at a time when other places aren’t necessarily doing the same. So this downturn for me, and those I seek to do business with, is a prime opportunity. I feel many more American companies will soon follow to the GCC as they begin to realize the true potential and value the GCC, especially Kuwait, has to offer.

5. What are the significant changes you foresee in business in the next 5 to 10 years?

I think this goes along with what I was saying in question #2 and that is a more “People” centered approach. Going back to serving the customer, anticipating their needs, providing valuable products at the very point customers realize they need them, and caring for and valuing the people within your organization. I think a move to a strong culture within a company is the way we are headed, or at least the way we “need” to be headed. Those companies that survive will be the companies whose employees “love” their job, and “love” coming to work, and end up feeling fulfilled through their experiences and interactions within their organization.

I also see more “participation” by employee partners in the enterprise. I believe that it makes sense for employees to be partners and participate in some of the value that

they generate. Participating in value generation is a way to ensure that the most creative and valuable of your employees are tied to generating great ideas and products for your business. In that way, both the employee and the owner win.

To achieve this, I prefer a more “hands on” approach to business management, which directly translates into less email chains and more personal conversations, fewer memos and more face-to-face interactions. Technology doesn’t need to be used simply for technology’s sake. Instead it should be a supplement rather than a substitution. I believe that personal leadership and personal management is in the heart and soul of successful business.

Closing

In closing I would like to thank Mr. Eric Lang, of ABC Kuwait for introducing me to ABC and its excellent program and network. Without you I would not have found the group of solid business professionals and I am thankful you took the time to bring me into this group.

I would also like to thank Mr. Gregory Stevens, Chairman, ABC Kuwait Council for giving me the motivation and courage to step up in the business world in Kuwait. You are a true inspiration Sir and I thank you.

I look forward to many more ABC events here in Kuwait, the opportunity to volunteer my time and talent, as well as the chance to make friendships and business relationships here with both Americans and Kuwaitis. Thank you.

“I believe that personal leadership and personal

management is in the heart and soul of successful business”

Business Partners and Owners of DARNOFA: Mr. David Simon of the USA and Nouf al-Shatti of Kuwait. The company is based in Kuwait. They can be reached at:Email: [email protected]: 6777.3539


leGal

Q1. Can you explain the Legal System in Kuwait?Ans. The legal system in Kuwait is based on the Latin Civil Law, which is highly influenced by the Egyptian law that is mostly derived from the French School. Nevertheless, the Islamic Sharia is fully applied in family law matters.

The legal cases are classified into Civil, Commercial, and Criminal categories. The Penal Code governs the general provisions applicable to crimes. Commercial laws are applicable for the commercial disputes that will be governed by the Commercial and Civil Procedures Law and the Law of Evidence.

The concept of precedent is not generally followed as a mode of practice, yet decisions of higher courts are respected.

Q2. Please give a brief description on the court system in Kuwait?Ans. The court structure is categorized in hierarchical order. The Courts of First Instance, The Courts of Appeal, and the Court of Cassation are the three levels. The Courts of First Instance (“Kulya Court’) handles civil, commercial, personal status, and penal matters. It is the lowest court in this hierarchy. Judgments from the Court of First Instance are considered to be appealed before the Court of Appeal.

The criminal courts are further divided into two circuits to handle the criminal matters related to misdemeanor and felony based on the gravity of the crime.

The Courts of Appeal, which has a panel of three judges, serve as the second level for objection. The Court of Cassation, incorporated to the system in 1990, is the apex court in the hierarchy and serves as the final court of appeal.

The Constitutional Court was established by Law No. 14 of 1973, which holds the exclusive authority to interpret the constitutionality of legislation and is authorized to review election procedures.

In 1995, the Ministerial Court was introduced to the system to impeach the ministers under the Criminal laws.

Q3. Can you explain the enforceability of a decree/judgment of a foreign court in Kuwait?Ans. The Kuwaiti Lawmakers are vigilant to define the

settled provisions regarding the enforceability of a decree/judgment of a foreign court and arbitral awards in Kuwait.

There are some prerequisites to recognize and enforce a foreign judgment, such as the said judgment must be final and enforceable. Furthermore, foreign judgments must be delivered by competent civil or commercial courts as per the laws, procedures and practice prevailed in the country.

Pursuant to the Code of Civil & Commercial Procedure, a foreign judgment cannot be enforced in Kuwait until it has been granted an exequatur (Writ of Execution) by a competent court in Kuwait.

The applicant for the exequatur has to produce sufficient evidence to enable the court to ascertain whether the foreign judgment meets the required conditions for enforcement like it was issued by a competent court, etc.

Q4. Is it possible for an expatriate to approach the court or Government Authorities directly?Ans. Off course, yes. The Constitution of Kuwait guarantees equality before law and equal protection of law to the citizens and expatriates alike. It enables the expatriates to approach the courts or any Government authorities freely, they will be able to enjoy the same consideration and courtesy as citizens.

Q5. Are the expatriates entitled to defend their cases in the Courts of Justice in Kuwait without the assistance of an attorney?Ans. Yes, The Constitution of Kuwait says ‘An accused person is presumed innocent until proved guilty in a legal trial at which the necessary guarantees for the exercise of the right of defense are secured’.

An expatriate person is eligible for equal consideration with the citizens and entitled to plead his case under civil, commercial, labor, family and rent laws before the Courts of law by himself without a Lawyer or Attorney.

However, under Criminal law, the parties are not allowed to appear before the court without a lawyer or Attorney in the felony cases, but it is possible in the misdemeanor cases.

The main obstacle, which prevents an expatriate from enjoying this privilege is the language barrier. The official language of all the courts of law in Kuwait is Arabic.

Expatriates and the Legal System in Kuwait Attorney Labeed Abdal

Email: [email protected]


DOING Business in KuwaitThere are many business councils in Kuwait, such as the American, French, German, and Indian. There are also Business forums, such as the British, commercial circles of the Canadians, and business groups of the Italian Embassy.

These bodies are not far from the local business community and are considered an integral part of its body. As foreign partners can only join the local business environment by being a partner in a local company (41/59) or have a local commercial agent, it is important for various countries seeking to do business in Kuwait to be properly connected to a local business partner.

For that reason, their voice must be heard, as it is worth it to facilitate their needs and encourage more foreign investment participation in the Kuwaiti market.

Moreover, as per the nature of those bodies in working under the umbrellas of the commercial sections in their respected embassies, it is highly expected that they will add to the general needed facilities in the commercial procedures through recommendations and explaining concerns regarding the business process, which includes both local and foreign share holders.

I personally believe that Kuwait and the Kuwaiti business environment must highly consider those recommendations to increase its benefits in doing the business processes and procedures with a mix of experiences from important and various parts of the world who will only add value to the Kuwaiti business community. These international business entities are an intricate part of Kuwait’s success in business.

Labeed AbdalEmail: [email protected] / [email protected]


business

When I arrived in Kuwait nearly twenty years ago, there was no McDonalds, no Gatorade, and no Celestial Seasons tea? Today, Kuwait has McDonalds and Gatorade, but where is Celestial Seasons and the other quality American brands?

Al Shaya Company has devoted great effort to bringing in American restaurant chains to Kuwait, but many FMCG items (i.e. Fast Moving Consumer Goods) that we know and love in America are not represented in Kuwait. Why? Part of the problem is that Kuwait is a small country to negotiate exclusive distributor rights. However, some companies I’ve researched only require a minimum order of a few containers a year for such a privilege. Other brands want a company to develop the whole Gulf region which may not be a problem. Countries like the UAE, for example, can be given sub-distributorship rights.

However, the largest obstacle is just a lack of market knowledge. Slowly but surely, exotic food brands from Asia, Australia, and Europe continue to appear on the shelves of LuLu Center, Sultan Center and the Coops. But where are Celestial Seasonings, Arizona Iced Tea, and Lender’s frozen bagels?

How many of the following American brands have you seen in Kuwait? A-1 Steak Sauce, Act II Microwave Popcorn, Agri-Link Foods, Nabisco, Alka-Seltzer, American Almond, American Roland Food Corporation, Apple Jacks (Kellogg’s), Apple Time, Archway Cookies, Argo Cornstarch, Arm and Hammer Baking Soda, Aunt Jemima, Aunt Nellie’s Vegetables, Azteca Foods, Baker’s Chocolate, Baker’s Coconut, Balance Bar, Ball Park Franks (beef), Barnum Animal Crackers, Bays English Muffins, Beatrice Cheese, Beech-Nut Baby Food, Berstein’s Italian Dressing, Bertolli Olive Oil, Best Foods, Best Foods Dressings, Betty Crocker, Betty Crocker Brownie Mixes, Betty Crocker Muffin Mixes, Bigelow Tea, Birds Eye, Bisquick, Bite Bunch Snacks, Blue Boy, Blue Diamond Almonds, Boboli, Bob’s Red Mill, Buitoni, Breyer’s Yogurt, Bridgford Foods, Brooks Chili, Bruce Food Products, Bumblebee Tuna, Brummel & Brown, Bush’s Beans, Butterball, Butter Buds, Cadbury’s, California Sun Dry, Campbell’s Healthy Request Soups, Carl Buddig, Carnation Baby Formula Baby, Carolina Enriched Rice, Casa Fiesta, Castlberry’s Food Co., Snow’s/Doxee, Bunker Hill Foods, Cattleman’s Sauces, Celeste Pizza, Celestial Seasonings, Challenge Butter, Cheese Nips, Cheese Whiz, Cheez-It

– Keebler, Chex Party Mix, Chicken of the Sea, Claussen Pickles, Clif Products, Comstock Pie Filling, ConAgra Foods, Contadina, Contadina Foodservice, Cool Whip, Country Crock, Country Time Drink Mix, Cream of Wheat, Creamora, Crisco, Crysal Light, CSR Sugar Products, Cuisinart, Curtice Burns Foods, Dannon, Dean Foods, Digiorno Pizza, Dijonnaise, Del Monte, Diamond Walnuts, Digiorno Pizza, Dole, Domino Sugar, Duncan Hines, Dundee Hazelnuts, Eagle Brand Sweetened Condensed Milk, Eagle Mills, Earth’s Best Baby Food, Edy’s Ice Cream, Egg Beaters, Eskimo Pie, Equal, Excelsior Foods, Farman’s Pickles, Fisher Nuts, Five Brothers, Flanagan’s Sauerkraut, Fleischmann’s Yeast, Folgers, Foxy Fresh Vegetables, Franco-American Gravy, Frank’s Red Hot, French’s, Fresh Express, Gardenburger, General Mills, Gerber Baby Food, Ghirardelli Chocolate, Gilroy Foods, Godiva, Golden Grain, Golden Valley Microwave Foods, Good Humor, Gorton’s, Goya Foods, Grandma’s Molasses, Gravy Master, Green Giant, Greenwood Beets, Guiltness Gourmet, Haagen-Dazs, Hammon’s Black Walnuts, Handi-Snacks, Hawaii’s Own, Healthy Choice, Healthy Request, Hellmans’ Dressings, Heluva Good Quality Foods, Hershey Foods, Hidden Valley Ranch, Hodgson Mill, Holsum Butter-Krust Bakers, Honey Maid Graham Crackers, Honeysuckle White, Husman’s Snack Foods, I Can’t Believe It’s Not Butter Home, Iron Kids Bread, JELL-O, Jet Puffed Marshmallows, Jif Peanut Butter, Jiffy Mix, Johnsonville, Karo Syrup, Keebler, Keller’s Specialty Butters, Kikkoman, King Oscar Sardines, Klondike Bars, Knorr, Knouse Foods, Knox, Kool-Aid, Kozy Shack Puddings and Desserts, Kraft Foods, LaChoy, Lamb Weston, Land O’ Frost, Land O’Lakes, La Restaurante Tortilla Chips and Salsa, Lawry’s, Lee Kum Kee Oyster Sauce, Lender’s Bagels, Lifesavers, Libby’s, Life Cereal, Lincoln, Lindt, Lipton Tea, Little Debbie Snacks, Log Cabin Syrup, Lohmann’s Vegetables, Louis Kemp Seafood, Lucky Leaf Pie Fillings, Lunchables, Mahatma Rice, M&M’s Bakery, Mallomars, Malt-O-Meal, Marie Callenders, Mariner’s Cove Soup, Marshmallow Fluff, Martha White, Matthew’s Snacks, Mauna Loa, Maxwell House, McKee Foods, McKenzies, Melissa’s Specialty Foods, Millstone Coffee, Minute Rice, Minute Tapioca, Miracle Whip, Mission Foods, Molinos de Puerto Rico, Mott’s Applesauce, Moon Pie, Mrs. Butterworth’s, Mrs. Paul’s, Musselman’s, Oscar Mayer, Miller’s Blue Ribbon Beef, Miracle Whip, Mootown Snackers, Motts, Mrs. Butterworths, Mrs. Paul’s, Mrs. Smith’s, Mt. Olive Pickles, Mueller’s Pasta, Nabisco,

Nalley Fine Foods, NatraTaste, Nasoya, New England Confectionary Company, Newman’s Own, Newtons, Nilla Wafers, Nissin Foods, None Such, Marzetti, Mincemeat, Norbest, Nutrasweet, Nutter Butter, Old El Paso, Olean, Ore-Ida, Ortega, Pace Foods, Pepperidge, Peter’s Chocolate, Pierce Foods, Planters Peanuts, Polly-O, Pop Secret, Popsicle, Pops-Rite Premium Popcorn, Post Cereal, Premium Saltine Crackers, Progresso Quality Foods, Purity Foods, Ragu, Ramen Noodles, RC Fine Foods, Ready Crust – Keebler, Real Lemon, Reckitt & Coleman, Reddi-Wip, Redi-Base, Red River Cereal, Red Star Yeast, Rhodes Bake and Serve Frozen Dough, Rice-A-Roni and Pasta Roni, Rich’s Online, Rit Dye, Ritz CrackersRoland Foods, Ronzoni Macaroni, Rosetto Pasta, Ruiz Food Products, Saffola, Sara Lee, Sargento, SeaPak, Seneca Foods, Seven Seas Dressing, Shake ‘N Bake, Silver Floss Sauerkraut, Skippy Peanut Butter, SnackWells, Snow’s, Snyder’s of Hanover – Pretzels, Snyder Snack Foods, Solo Cyberkitchen, Starkist Tuna, Steens Syrup, Stinson Seafood, Stouffer’s, Stove-Top, Success Rice, Sue Bee Honey, Sunbelt Snacks and Cereals, Sun-Maid, Sunny Delight, Sunrise Soya Foods, Sun-Rype, Sunshine Biscuits, Super Moist Cake Mix, Sure-Jell, Swanson Broth, Sweet ‘N Low, Sweet One, Swift & Co., Swiss Miss, Take Control Spreads, Tastykake, TCBY, Teddy Grahams, Thank You Pie Filling, Thank You Pudding, Thorn Apple Valley, Tim’s Cascade Chips, Tofutti, Tombstone Pizza, Top Ramen, Torani, Total Cereal, Triscuit, Uncle Ben’s, V8 Vegetable Juice, Van de Kamp’s, Velveeta, Vita-Spelt, Wheat Thins, White Lily Flour, Wilderness Breakfast Toppers, Wilderness Pie Filling, Wilton Enterprises, Wish-Bone Salad Dressing, Yoplait, Yuban, Yves Veggie Cuisine, or Zatarain’s?

Finally, the buyers working in Kuwait’s major food wholesalers are not from America or have never been to America, so they are unaware in the American brands and what can sell in Kuwait. Take a company like Kraft Foods that has over 100 beverage, cheese and dairy foods, snack foods, confectionery, and convenience food brands. Yet in Kuwait, we have Kraft’s Oreos, but not Kool-Aid and Corn Nuts and also not Sanka!

We want more American brands in Kuwait!

Maxine Meilleur is the owner of a small business in Kuwait and is a consultant experienced in brand acquisition. [email protected]

Where a re t h eAMERICAN BRANDS


As a leading player in the international logistics sector, Agility recognizes that global presence in business demands a strong commitment to social responsibility. Agility leverages its logistics expertise, global network and multicultural workforce to provide humanitarian disaster relief, support employee led community projects, and improve sustainability in supply chains.

Through Agility’s Humanitarian Emergency Logistics Program (HELP), the company assists the humanitarian community with international disaster response operations in some of the most challenging environments. To date the company has responded to 22 emergency disaster response operations in Indonesia, Philippines, Bangladesh, Lebanon, Chile, Haiti, Pakistan, Samoa, India, Sri Lanka, Thailand, and Myanmar.

Agility is also a foundational member of the Logistics Emergency Teams (LET), a cross-company partnership to support humanitarian relief efforts during natural disasters. The LET initiative was launched in Davos under the auspices of the World Economic Forum. The LETs are designed to allow the humanitarian community to make a single phone call and access the combined and orchestrated services of four major logistics corporations.

volunTeer

Agility: A CSR Leader in KuwaitAgility’s Community Volunteer Program supports employees that are interested in engaging with their local communities in support of youth, education, disaster response, health and the environment. Through this program, Agility brings its resources, expertise and people to the table to help local communities in their growth and development. These projects included conducting global education drives, renovating elementary schools in rural Sri Lanka, Vietnam and Indonesia, supporting The Great Football Giveaway projects in Angola, Rwanda, Uganda, and Tanzania, and supporting orphanages in Sierra Leone, Kuwait and

Ethiopia.

Agility recognizes the importance of preserving our natural resources, whilst also understanding that the complexity of these issues demands global dialogue and awareness building. Agility is working with the

World Economic Forum to identify best practices in reducing carbon in the supply chain, actively engaging employees on how to reduce the company’s carbon footprint, and working towards helping customers understand the environmental implications of their purchasing decisions.

To date, Agility has completed over 500 projects in over 60 countries, positively affecting over 500,000 people.

An Overview of Agility’s 2011-2012 Projects in Kuwait:

Boston University Students Visit AgilityAs a part of its focus on youth and education, Agility frequently hosts students from different schools and universities around the world. The visits include a tour of Agility facilities to give students an inside look at the logistics industry. In June 2011, a group of students from Boston University’s Department of Political Science visited the Agility premises in Kuwait.

During their visit, the students toured the facilities and were given an overview of the logistics industry and Agility’s global activities. In Kuwait for a summer study abroad course, the students had also met with officials from government and private organizations in Kuwait as a part of their research on politics, culture, economics, and the oil and gas industry in the region. Agility was of particular interest as a provider of specialized logistics services to the energy sector globally.


RunQ8 2012 to Boost Road and Traffic Safety Agility partnered with the Fawzia Sultan Rehabilitation Institute (FSRI) to establish and organize RunQ8, an annual 10km charity run under the patronage of His Excellency Sheikh Ahmad Al-Humoud Al-Jaber Al-Sabah, Kuwait’s Deputy Prime Minister, Minister of Defense and Minister of Interior. Held on January 28, 2012, RunQ8 2012 supported two initiatives: first is the Porsche Early Childhood Traffic Safety Education Project, which will teach local school children about being safe

passengers and understanding road and traffic safety rules. The second is the Post-Crash Rehabilitation Training Center supported by Zain, the leading telecommunication company in Kuwait that helps those affected by traffic accidents. This includes drivers, passengers as well as family members that suffer the loss of a loved one in an accident.

2.5 Tons of Plastic Waste Recycled By Mosques during RamadanAgility Kuwait and its subsidiary the Metal and Recycling Company (MRC) helped collect and recycle an estimated 2.5 tons of plastic waste from local mosques during the month of Ramadan, 2011. Partnering with the Ministry of Awqaf, the companies coordinated with five mosques in Kuwait to collect, sort and recycle plastic disposables thrown away following public Iftar and Suhoor meals served during the month of Ramadan.

Agility Employees Celebrate Earth Day 2012 in KuwaitAgility employees in Kuwait celebrated Earth Day 2012 with a range of activities focused on giving back to the environment. The activities commemorating the 42nd anniversary of Earth Day spanned a week and covered tree plantings, car pooling and a recycled art competition.

On April 19, Agility employees and executives took time out from work and planted over 350 trees within the Agility premises in Sulaibiya with a goal to reduce the impact of carbon emissions. This brings the total count of trees planted by Agility employees in Kuwait in the last four years to

6,350. During the week of April 22, employees participated in carpool week by riding together to and from work to ensure there were less cars on the road. This led to lesser fuel consumption and more unpolluted air in the atmosphere.

A recycled art competition encouraged employees to recycle everyday materials made of plastic, paper or metal into works of art. Employees enthusiastically submitted entries individually or as teams to produce both functional and attractive pieces for display. The best entries received exciting prizes for their use of recycled material and creativity.


Kuwait Offset Program was established in accordance with the Council of Ministers’ Decision NO. 694/1992, and was managed through the countertrade “Offset” Department within Kuwait Ministry of Finance (MOF). Almost two decades after its inception, the National Offset Company (NOC), a state owned Shareholding Corporation, commenced operations on September 2006, to manage the Offset Program on behalf of MOF as per the management contract signed between both parties.

OUR VISION

Developing Kuwait offset program to play a prominent role in achieving the strategic development goals of the State of Kuwait.

OUR MISSION

To implement the offset program within Kuwait’s overall strategic economic objectives through establishing viable long term business ventures between foreign offset obligors and Kuwaiti entrepreneurs.

Future Strategy of the National Offset Company

To Achieve value added benefits to Kuwait economy through concentrating on the creation of long-term business partnerships between foreign offset obligors (or their specialized foreign representatives) and the Kuwaiti private sector entrepreneurs, granting mutual benefits to both and fostering Kuwait sustainable economic growth through supporting the economic role of the private sector and achieving the Offset Program objectives.

Objectives of Offset Program:

To benefit from the Kuwait government contracts those are subject to the offset program rules and regulations through the transfer of economic benefits from these foreign contractors to the Kuwait economy. It seeks to achieve such benefits through the establishment of long-term partnerships between foreign contractors that are subject to Offset (or their representatives of specialized foreign companies) and Kuwaiti private sector entrepreneurs, leading to the achievement of the following objectives:

Transfer appropriate advanced technologies to Kuwait, 1. and facilitate their integration into the local economy;

Creation and development of high-skill professional 2. jobs for Kuwaiti nationals.

Support professional training of Kuwaiti Nationals.3.

The Role and Function of the National Offset Company

Managing the offset program efficiently and effectively •on behalf of the Kuwait Ministry of Finance.

business

Directing foreign companies to implement their •commitments towards Kuwait Offset Program by implementing long-term partnerships with the Kuwaiti private sector, in accordance with international standards, ensuring transparency and conformity with corporate governance principles.

Supporting the State of Kuwait efforts to promote and •attract foreign investments.

Creating lucrative investment opportunities for foreign •companies, leading to the achievement of value added benefits to the Kuwait economy.

Motivating committed foreign offset obligors to support •offset projects that lead to the transfer of advanced technology, know-how and managerial expertise to Kuwait.

Contributing to the privatization efforts of the State of •Kuwait and supporting the role of the private sector in the national economy.

Supporting committed foreign offset obligors and •provide them with all possible facilities in their investment activities in Kuwait.

NOC SERVICES

Supporting foreign Offset obligors in all legal and •organizational aspects pertaining to their offset projects.

Supporting and assisting foreign offset companies in •understanding the business environment in the State of Kuwait.

Support foreign offset obligors in developing strategic •business relationships with Kuwaiti private sector entities.

Assisting foreign offset obligors in identifying and •developing offset projects that coincide with the Offset Program objectives.

Assisting foreign offset obligors in proposing and •developing offset projects initiatives that are compatible with the general economic policy of the State of Kuwait.

Kuwait Offset Program and the National Offset Company



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NOC Corporate Eng Ad.pdf 1 3/22/12 4:05 PM

11th Annual ABCK Golf Tournament4 May, 2012

Under the patronage of HE Ambassador Matthew Tueller, the ABCK held its 11th Annual Golf Tournament on Friday, May 4 at the Sahara Club. It was a 4-man 18-hole Texas scramble complete with no handicaps. A reception was given on May 3 at 6pm at the Sahara Club for late registration; followed by breakfast on May 4 at 6am and lunch was served at 1pm on May 4 with Ambassador Tueller as the Featured Guest Speaker. The list of winners at the ABCK Golf Tournament are as follows:

• FIRST : H. Al Azem, M. Joujou, F. Bester, S. Letoaba• SECOND : R. Coleman, H. Jones, R. Zayat, L. Moskaliliuk• THIRD : D. Sims, S. Dunning, C. Bambrook, J. Kehoe• Nearest to pin (Hole 14) : Michael Pihlblad• Nearest to pin (Hole 8) : Lloyd Parker• Longest Drive : Nadeem Shafi

sporTs


Travel

HoustonHouston was incorporated June 1837. Their GDP is amazing, there are only 22 countries in the world that have a higher GDP at $385 billion annually. As far as restaurants, there are many, such as the Taste of Texas for true Texas steak lovers. Also, there is Hugos, which is a famous high end Mexican restaurant popular with business clientele; and also Ninfas. Macy’s, which used to be the famous Foleys in downtown Houston, is a great place to shop (my mother and I used to shop here when I was in elementary school). The original store was opened in 1900. The Galleria hosts such stores as Nordstroms, Tiffany, and many more. One of the Historic Hotels of America, the Lancaster, is located in the heart of the Central Business District and Houston’s theater district, which host many culinary and entertainment establishments. A visit to the Astros ballpark is a must to take in a truly American sport, baseball! You can visit the Houston Zoo, the NASA’s Johnson Space Center, the Museum of Natural Science, the Gerald Hines Waterfall, and the Museum of Fine Arts. The Reliant Staduium is home to the NFL team, the Texans. As you can see, there is plenty to do in Houston. The King Ranch, founded in 1853, is not far from here, and I highly recommend visiting one of the most historic ranches in the world (ie: Ford even has a truck named after it). My mother worked for the King Ranch back in the 1950s and

Recently, some of our ABCK Board of Directors attended the OTC Conference in Houston, so I thought it would be appropriate to do a travel article on the place of my birth,Texas; and dedicate it to Barbara, Jody, Cynthia, Buddy, Ava, Hot Rod, and Del.

Happy Trails in the Lone Star State!Texas…

By, Gae Lyn Anderson

60s, and on occasion we went with her and played with their son, Beau. (Note: my father was a Chief Engineer who transported the oil from the GCC to the USA at this time.) Also, you can go to the beaches on the Gulf of Mexico, just one hour by car from Houston to Galveston or Corpus Christie. Cozumel is a famous island for scuba diving just off the coast of Mexico, which I really enjoyed, and then you can take a ferry to visit the Mayan Indian ruins in Mexico at Coba and Tulum dating back as far as 1,000 years.

Johnson Space Center, NASA

Houston skyline


Dallas – aka the Big DDallas was incorporated in 1856. The 100 year old Adolphus Hotel is located in the Historic District in Dallas. My daughter and I ate lunch there when she was on a class trip in Middle School; it’s quite lovely and worth the visit. There is plenty to do in Dallas as well visiting the Metroplex, Victory Park, and the famous House of Blues. The Dallas Arts District houses the Dallas Museum of Art, the Crow Collection of Asian Art, the Morton H. Meyerson Symphony

Center, Annette Strauss Artist Square, and the Nasher Sculpture Center. At the Arboretum, you will find 66 acres of lovely flowers in bloom in every season; or head to the Dallas Zoo. Shopping abounds at the Highland Park Village, the North Park Center, the Galleria, or Horchow. The Mews is the store loved by interior designers with over 90 stalls of antiques. It is located in the Design District of Dallas. There are several restaurants to enjoy, such as the Zodiac Room

at Neiman Marcus founded in 1907, the Mansion on Turtle Creek, Bread Winners for breakfast, and the Bijoux on West Lovers Lane. In the summer, you can find the Dallas Farmers Market on Pearl Street. Remember to enjoy the State Fair of Texas in the fall each year, and attend a rodeo to enjoy true Texan hospitality. The George W. Bush Presidential Center and Library is expected to open in September 2013.

Dallas Museum of Art

Rodeo

The Adolphus Hotel in Dallas


San AntonioIn 2005, I visited San Antonio for the annual TESOL Conference. It was quite a delight to visit one of the loveliest and most historic cities in Texas. The Alamo is located in San Antonio, and is the famous place where Colonel William Travis of Texas, the Tejano, and the volunteers from Tennessee (hence, this is why Tennessee is called the Volunteer State) met with Santa Anna in 1836. It is here that one of the famous battles in the fight for Texas independence was held. Across the street from the Alamo is one of many historic hotels, the Menger Hotel in San Antonio. It was opened in 1859 by William Menger. Legend has it that Captain Richard King, founder of the famous King’s Ranch, is reported to have had a personal suite here in which he disposed of his great

wealth and said farewell to his family and friends in 1885. There is also the gorgeous River Walk where you will find many restaurants, art galleries, and shops. You can also take a horse-carriage ride around the Historic District of San Antonio, complete with a tour guide detailing its history. There are over 40 golf courses, and one of the world’s top 20 Golf courses is located here, La Cantera. Moreover, you can enjoy the San Antonio Zoo, the Children’s Museum, the San Antonio Museum of Art, and fun night in Southtown’s First Friday Art Walk. In addition, you can take the family to SeaWorld and the Japanese Tea Garden. From here, I rented a car and headed out to enjoy the Texas Hill Country and visited several vineyards, New Braunfels, Texas, and drove toward Austin.

New BraunfelsNew Braunfels is a lovely old pioneer town first settled by Germans and was established in 1845. It is an authentic pioneer town, which is on the National Historic Register. The Gruene Hall is the place where you will find traditional Western music and jazz. It looks just like a setting from one of those good ol’ cowboy movies with John Wayne. Across the street is the famous Gristmill River Restaurant. It is an open-air cotton gin that sits along the Guadalupe River. It is one of the most pleasant dining experiences I have ever had, and the food was fabulous. They serve traditional American-style food, such as country fried steak, mashed potatoes, catfish, hamburgers, onion rings, and ice tea in mason jars. At the Gristmill, I met some of my family’s childhood friends who used to have a circus that traveled around Texas back in the 1950s and 1960s. It

The Menger Hotel in San Antonio

The Alamo in San Antonio

Entrance to San Antonio Zoo


was just a delightful experience to reminesce the fun times I had with my siblings. Each year they host a Wurstfest in November, the German version of Oktoberfest.

Austin This is the capital city of Texas and was incorporated in 1839. You can get guided tours at the State Capitol. The Driskill Hotel is one of the most famous historic hotels in Texas built in 1886 by the cattle baron, Jesse Driskill. Then visit the Bob Bullock Texas State History Museum and the Mayfield Park Cottage and Gardens. The Zilker Park hosts an annual Shakespeare Theatre in the Park in the summertime. The Lyndon Baines Johnson Library and Museum is in Austin, and also the University of Texas. One of the famous

restaurants to eat at is Sam’s Bar-B-Q; this type of food is King across the southwest and in the south in the USA. In Tennessee each year in May, they host a Bar-B-Q cooking contest and people come from all over the USA, including Texas to compete for the best Bar-B-Q in America (ie: it is known as “showie” or “meshwee” in the Middle East). If shopping is on your list of things to do in Austin, then The Maya Shop and Barton Creek Square Mall are the places you want to check out. Happy Trails to you in Texas!

Gristmill River Restaurant

Bob Bullock Texas State History Museum in Austin

University of Texas


The excitement of travel - be it the planning, the journey, the new sights and sounds - these experiences all make up some of our most exciting memories, and these can remain with us for ever when our travel is free from any worries. This is the importance of travel insurance, as it gives you complete peace of mind when traveling.

Here in Kuwait, overseas travel is becoming more popular. In 2011 the number of travelers flying from Kuwait increased to 4.2 million passengers according to the Kuwait Airport authorities and for this year, the number of travelers is expected to exceed 4.4 million. At the same time Chartis Insurance has seen an increase of 20% in the number of people buying Travel Insurance as travelers understand the benefits of Travel Insurance.

You can though, never predict when your dream trip may turn into a nightmare due to some unfortunate event that happens while you are traveling. There are hundreds of circumstances that could cause you to cancel your trip, return home early or force you to seek emergency medical treatment while traveling. According to the International Federation of Health Plan, the average cost of hospitalization in United States is USD 15,000 and

in Europe the cost averages USD 5,000. And these costs could rise dramatically if the patient requires emergency evacuation or transportation by ambulance.

So it really pays if your travel investment is protected and you are able travel the world in complete freedom.

Travel Insurance by Chartis gives you that comprehensive protection.

In the event of an unforeseen event occurring, travel insurance will provide compensation for injuries, disability or death. Coverage also includes expenses incurred as a result of an accident or illness, travel inconvenience and travel assist.

And Chartis’ Travel Insurances is backed up by superior customer service here in Kuwait and around the world, especially at the time of a claim.

So the next time you travel, make sure your get the peace of mind you deserve with Chartis Travel Insurance

For more information on travel insurance please contact:

CHARTIS MEMSA Insurance Company Limited (Kuwait Branch) on 22474260/1/2/3 or visit our website: www.chartisinsurance.com

Travel

Travel Insurance gives you that Peace of Mind


Travel Guardwill be with you

‘Our innovative travel products,24 hour worldwide assistance

services and decades of experience mean we go farther to ensure our

clients enjoy stress-free trips.We will accompany you,

wherever your travels take you!’

“All products are written by insurance company subsidiaries or affiliates of Chartis Inc. Coverage may not be available in all jurisdictions and is subject to terms and conditions of the actual policy.

For additional information, please visit our website.

www.chartisinsurance.com

Whereveryou go

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MECACC’s dedicated teams of Door Knockers fanned out across Capitol Hill to conduct over 175, targeted meetings, with key leaders who have a high degree of influence over the outcomes of our legislative agenda. These teams were comprised of articulate and compassionate American business leaders who live and work on the Arabian Peninsula.

We continued our everlasting work to educate Congress and their staff about the Foreign Earned Income Exclusion in the context of job creation, exports, trade and economic growth. This effort remains a defensive play as well as an attempt to level the playing field for Americans living and working abroad. The FEIE has always been a juicy and tempting revenue raising opportunity for too many Members of Congress. MECACC’s presence on the Hill again reinforced our message:

AMERICANS ABROAD=U.S. EXPORTS=JOBS AT HOME

This year, MECACC added our evolving position on FATCA to our legislative agenda. Just a week after MECACC’s Door Knock, our message is being re-enforced by a massive lobbying push, conducted by a powerful array of special interests, and targeted at Congressional Leaders and the Department Of The Treasury. The battle on this issue has only just begun.

Door Knock 2012 featured an unprecedented joint event and Gala Dinner hosted by MECACC and the U.S. Chamber of Commerce. Approximately 200 government leaders, business leaders from the private sector, and allies and friends of MECACC packed the Hall of Flags at the USCOC Headquarters and the program included speakers such as Deputy Secretary of State Thomas Nides, Bahrain’s Ambassador to the U.S., Ambassador Houda Nonoo, U.S. Congressman, Mick Mulvaney, MECACC Chairman, Anne Jafery, and USCOC Vice President of Middle East Affairs, Lionell Johnson. MECACC is proud to enjoy this closer working relationship with The Chamber.

CCG has compiled and analyzed the results of each Door Knock meeting in 2012. That spreadsheet is attached at the end of this report. We have completed most of the required follow up from the Door Knock meetings. Further follow up opportunities are being scheduled with potential coalition partners inside the Beltway. CCG has been seeking input from this year’s Door Knock participants in order to improve the event in anticipation of robust attempts after the elections to make major changes to the U.S. tax system. Next year’s Door Knock will be vital to the success of MECACC’s legislative agenda

To That End, CCG hopes to gain approval from MECACC to conduct a relationship building tour to all of MECACC’s member AmChams in the GCC in late September and early October. We would like to recruit persuasive and experienced MECACC leaders to attend as many of these

meetings with our constituent organizations as possible to help us spread the word through the region that there exists greater strength in numbers. A greater cooperation between our groups will result in opportunities for all to grow and gain influence together while more effectively advancing the mission statement for MECACC.

DOOR KNOCK 2012 WEEK IN REVIEW

2012 Mecacc Door Knock

The 2012 Annual MECACC Door Knock convened on Sunday May 6, 2012 and lasted through Friday May 11, 2012. Door Knock 2012 included more than 14 MECACC Door Knockers who gathered in Washington, D.C. for the event in order to conduct a massive lobbying push on Capitol Hill and with the Administration. Special thanks go to the MECACC Door Knock teams that traveled from half way around the world to successfully influence decision makers in Washington.

2012 Door Knock Orientation Briefing

The 2012 Door Knock orientation kicked off at 5:00 pm on Sunday May 6, 2012 at the Phoenix Park Hotel. Each Door Knocker received a welcome package containing materials such as a week-long Door Knock agenda, specialized MECACC gifts, lapel buttons and visitor’s information about Washington, D.C. MECACC Door Knockers also received a professional briefing manual and a seminar was conducted on the following topics: a description of the MECACC Door Knock delegation; a spatial orientation to Capitol Hill and D.C.; an overview of key Congressional Committees and their functions; ten points to more effective lobbying; an overview of MECACC’s take away materials; an overview of numerous supportive materials to MECACC’s lobbying arguments and training on MECACC’s meeting results questionnaire.

Morning Briefing Sessions/Afternoon De-Briefing Sessions

In order to attend all of the targeted meetings, the MECACC delegation was divided into teams of two Door Knockers and deployed across Capitol Hill each day of the week. Since there were so many new and energetic Door Knockers this year, new Door Knockers were paired with experienced Door Knockers so that they could learn from teammates who were familiar with getting MECACC’s message across on Capitol Hill. CCG was available to brief each team every morning on the history of their meeting targets, the committees those targets serve on, the significance that each target has in MECACC’s agenda and the outcomes from each meeting that MECACC hoped to obtain.

Daily de-briefings were also scheduled at the close of each day’s Door Knocking activities. The de-briefings enabled

MECACC2012 DOOR KNOCK OVERVIEW


the teams to learn from one another’s experiences and gage our progress throughout the week. The de-briefings also enabled MECACC to fine tune its lobbying strategy as information was gained.

Mecacc/Uscoc Gala Dinner And Reception

Our Gala Dinner at the U.S. Chamber of Commerce was the best attended event that MECACC has held in Washington D.C. in over 10 years. The event grew so large that we had to change the venue three times to accommodate the ever swelling numbers of people who registered for it. The Hall of Flags was packed with business leaders interested in exporting to the GCC, government officials from the Hill and the Administration as well as many potential allies from

other Washington based groups who have an interest in individual countries under the MECACC umbrella. CCG has spent much of this past week meeting with those groups to create strategic alliances where we can.

FATCA UPDATE

Door Knock teams visited 13 Members of the House Financial Services during Door Knock 2012. MECACC’s teams visiting these particular Members of Congress had the following message:

• Starting in 2014 (moved from 2013), foreign financial institutions will be required by the U.S. government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of U.S. citizens to the IRS. This law requires foreign financial institutions (FFI) such as your local bank, stock brokers, hedge funds, pension funds, insurance companies, trusts, etc. - to report directly to the IRS all their clients who are “U.S. persons” (citizens and green card holders living in the USA or abroad). The penalties for the institutions that do not cooperate are steep.

• FATCA also requires U.S. citizens who have foreign financial assets in excess of $50,000 (in some cases) to report those assets on a new Form 8938 to be filed with the 1040 tax return starting tax year 2011. Instructions for form 8938 were published in December 2011. MECACC Supports Repealing FATCA In 2012

• FATCA will destroy the lives of average, honest and hard-working Americans no matter where they live. Reporting on foreign bank accounts, pension plans, annuities, and property just because you hold these assets overseas is discriminatory.


• If this isn’t bad enough, think what will happen when foreign banks, insurance companies and financial institutions begin refusing Americans as clients and divesting in U.S. securities. Foreign investment in the U.S. amounts to $21 trillion and $10.5 trillion of this is invested in U.S. securities. A KPMG survey indicates that only 36% of financial institution will comply with

FATCA leaving 64% considering divesting out of U.S.

securities. If even a fraction of those foreign investors divest, the loss to the U.S. would be in the trillions of dollars. This at a time when the U.S. economy desperately needs more foreign investment, not less.

Conclusions:

• MECACC informed The U.S. Congress about how this Act was “slipped into” the Hiring Incentives Bill of 2009 and was not properly reviewed; most in Congress were not even aware of the content of the law, let alone the implications.

• FATCA will significantly discourage foreign investment in the United States due to the threat of withholding 30% of their funds. FATCA will negatively impact U.S. businesses and American entrepreneurs operating in global markets; it has already turned American citizens into pariahs in the international world of finance as foreign financial institutions close off banking relationships.

• FATCA is not necessary and requires heavy administrative costs that exceed any potential for additional tax revenue; the IRS already has many other tools to go after tax evaders. FATCA is an unacceptable manifestation of U.S. financial imperialism that imposes U.S. law on the rest of the world; this can lead to a systematic destabilizing of international financial markets

Moving Ahead On Fatca

While FATCA was a new issue being discussed during our trips to The Hill, the issue has ignited since our initial meetings in Congress. The Government Accountability Office issued a report this week and has disclosed that, as the implementation of FATCA should provide the Internal

Revenue Service (IRS) with a substantial amount of new information, Congress has asked for a review of how it plans to manage that information.

Given that FATCA was enacted to improve tax compliance with regard to foreign accounts and entities, and cross-border transactions, the GAO’s objectives were to assess the IRS’s approach for implementing the FATCA requirements, to assess the extent to which the IRS has developed plans to use the information from FATCA to improve tax compliance, and to determine the extent to which the IRS is incorporating leading practices to develop its cost estimate for implementing FATCA.

Following its review, the GAO has ascertained that the IRS has taken initial steps to implement FATCA requirements in line with normal implementation practices, including establishing a team to manage the implementation process and issuing guidance and proposed regulations, and it has also involved external stakeholders in the implementation process.

The IRS has also communicated initial information to its staff. However, although the IRS assessed the risks of some aspects of FATCA implementation, it has not consolidated existing risk assessment information or future risk assessment plans into an overall risk assessment. Without a consolidated assessment, the GAO noted, there is less assurance that all risks have been comprehensively identified.

In addition, the GAO has found out that the IRS plans to compare multiple sources of information to identify


US taxpayers and FFIs failing to comply with the FATCA requirements and, more broadly, taxpayers failing to report their overseas income. However, while the IRS has begun to discuss how it will use information to improve compliance, it has not yet completed or fully documented a broader strategy for doing so.

For example, it has not developed key internal milestones for accomplishing the tasks necessary to enable it to use FATCA information to improve taxpayer compliance or performance measures to assess the cost and benefits of its compliance efforts.

Nor, has the IRS developed a comprehensive resource estimate for FATCA implementation. Without a timeline to develop the estimate, the GAO concludes, the IRS may not be able to develop a reliable cost estimate and therefore risks not communicating key cost information to Congress and IRS management in time for them to make decisions affecting the implementation of FATCA.

Therefore, in order to improve FATCA implementation, but recognizing that IRS is phasing in implementation, the GAO recommended that the Commissioner of Internal Revenue take the following three actions, which may evolve over time: develop a consolidated risk assessment; complete a broad strategy, including a timeline and performance measures, for how the IRS intends to use information collected based on the FATCA requirements to improve tax compliance; and establish and document a timeline for completing a comprehensive FATCA cost estimate.

The Foreign Account Tax Compliance Act can still be repealed. FATCA presents what military planners call a target-rich environment for, first, rendering unenforceable the partnership agreement and the FATCA regulations, and then for final repeal of this monstrosity.

Indeed, teams of lobbyists are being deployed this week and next to The Hill in a well-funded and coordinated attempt to bring down FATCA.

Powerful Members of Congress, including Congressman Charles Boustany, have been leading a new charge in The House of Representatives to repeal FATCA.

The Private Equity Growth Capital Council seems to be spearheading the lobbying push. This week the PEGCC sent a letter to regulators urging changes to the Foreign Account Tax Compliance Act in an attempt to open a dialogue regarding several hurdles the industry would have to clear to comply.

The 12-page letter sent Monday to the U.S. Treasury Department and the Internal Revenue Service calls for a more efficient process for private equity firms with foreign funds or non-U.S. investors required to register as foreign financial institutions, as well as some leeway when dealing with foreign investors unwilling to comply.

The ultimate objective of the PEGCC is to make the compliance process more efficient and effective for both the regulators and the regulated entities without impacting the substantive goals.

Among the changes called for by the PEGCC in the letter, the lobbing group wants a centralized compliance process for firms. Right now, FATCA calls for private equity funds

classified as FFIs and all the holding companies that house investments to enter into separate foreign financial institutions agreements.

Without a centralized compliance option, many private equity fund families may be forced to have hundreds of special purpose vehicles enter into separate foreign financial institutions agreements in a manner that would not be effective for regulators or for regulated private equity firms.

CCG will keep MECACC updated as events unfold inside the Beltway that could shape the future of FATCA.

FEIE UPDATE

The political landscape going into Door Knock indicated that there would be little chance to increase the Foreign Earned Income Exclusion in this Session of Congress.

House Budget Committee Chairman Paul Ryan had introduced a hard-core GOP budget. His committee passed the package in a 19-18 vote. Two Republicans voted against it. No Democrats voted for it. Partisanship was in full swing.

Last year, a Ryan budget passed the House in a 235-193 vote. No Democrats voted for the GOP plan. Only Republicans voted yes. Four GOP members voted no. Two Republicans and three Democrats didn’t vote.

When Senate Majority Leader Harry Reid brought the House package to the floor, five Senate Republicans voted no, and the measure failed 57-40. The Ryan budget, however, fared better last year than President Obama’s plan, which the Senate rejected 97-0 in May.

The Senate hasn’t passed a budget since April 29, 2009.

Neither the latest Ryan budget nor Obama’s February spending plan is likely to pass this year. The Democratic Senate won’t go for the GOP cuts, and House Republicans won’t go for Obama’s tax increases. But the two plans will be fodder in the 2012 election, providing voters with a stark choice.

In the midst of politics and the hype of an election year, MECACC had a key role to play and Door Knock 2012 came at an important time.

First, many budget proposals and tax plans being debated about in both the House and Senate call for an end to the Foreign Earned Income Exclusion in order to raise money in those proposals. The FEIE has been, and always will be, seen as a juicy revenue raiser to those who are simply convinced that it is an unfair tax giveaway for the rich. This is a notion that MECACC warned against during Door Knock as dangerous to American exports and job creation in the U.S.

Please note as well that the power of the overseas American constituency has always been diluted because, while large in an aggregate number, they are spread out across all 435 Congressional Districts. This means that they do not account for a large segment of voters in any one Congressional District. Finding champions to take up our cause becomes more difficult for overseas Americans than other constituent


groups because of this factor. This problem also makes it easier for some Members of Congress to target the FEIE as a revenue raiser with no ramifications at the ballot box on Election Day. This will be our constant fight this year.

Second, Congressman Dave Camp and other leaders on The Ways and Means Committee have been pushing to transform America’s tax system from a worldwide system based on citizenship to a territorial based system. This is a key, emerging concept in Congress that MECACC reinforced and encouraged.

MECACC Door Knock Teams stressed that while such a system is desirable for corporate taxation, the taxation of individuals under a territorial based system would level the playing field for Americans abroad. Leveling the tax playing field will make it less costly for companies operating abroad to hire American workers and stop the outsourcing of those jobs to foreign nationals.

Third, exports and job creation have been key themes for Republicans, the Obama Administration and Democrats in Congress as well. MECACC’s Door Knock 2012 helped to inform decision-makers about the FEIE, not as a tax issue, rather as an exports and jobs issue.

DOOR KNOCKERS ARTICULATED MECACC’S OFFICIAL POSITION ON THE FEIE:

PROTECT AND INCREASE THE FOREIGN EARNED INCOME EXCLUSION AMERICANS ABROAD = U.S. EXPORTS = JOBS AT HOME

Economy, Employment and Exports

• The nation’s unemployment rate stood at 8.2% in February 2012, with over 15.9% total from those giving up searching for jobs.

• The current number of unemployed workers is 13.7 million & over 24.7 million unemployed and underemployed.

• Total U.S. exports of goods and services in 2010 were $ 1,831 billion, compared to $ 1,571 billion in 2009 and $ 1,839 billion in 2008. Our trade deficit, however, grows by over $1.1 billion A DAY – from jobs that should be taken by Americans.

• The National Export Initiative was started in March 2010. The objective of this initiative is to “enhance and coordinate Federal efforts to facilitate the creation of jobs through the promotion of exports”. The goal is to double exports to $3.1 trillion by 2015. The initiative identified financing, advocacy and assistance for American businesses to locate, set-up shop, and win new markets as its first three goals.

• According to U.S. Department of Commerce statistics, one in every eleven manufacturing and agricultural production jobs in 2010 was created by exports. This represents American’s indirect and direct efforts. We have specific, identifiable experiences that can be shared where Americans working abroad in positions such as purchasing agents/ managers, new business managers, financial analysts, CEOs, CFOs, general managers, school head masters,security consultants, business consultants, bankers, and virtually any other business-related profession repeatedly influence organizational decisions that cause

adoption or continuation of U.S. products.

• American citizens working abroad are our foremost proponents of export-driven commerce. Because of current U.S. tax policies on foreign earned income, American and foreign firms have to pay 30-35% more to employ an American citizen overseas compared to the cost of employing nationals from other Western competitor countries. This policy undermines U.S. job creation by promoting foreign labor alternatives.

• The National Export Initiative cannot succeed without having more Americans working abroad to promote U.S. products and services. Increasing exports requires a tandem approach at home and abroad to increase exports and make the U.S. more competitive in the global market.

Competitiveness Issues

• The goal of U.S. trade policy is to harmonize international taxes and tariffs to promote a level playing field in international trade. This is the primary reason why the US does not levy a tax on product exports. However, our current tax policies on the foreign earned income of Americans working abroad are a tax on exported services and put Americans at a significant disadvantage – and damage our export competitiveness.

• The employment of each American overseas directly reduces the ranks of unemployed Americans through an ‘absent worker’ effect. For every American who is gainfully employed overseas, there is one less person seeking work in the US (and drawing unemployment and other government services and benefits). Other industrialized nations understand this concept well with probably the most recent visible example being the EU which actively moves to level the playing field and otherwise protect the rights of its workers to seek employment in other member nations. Additionally, the recycling of the earnings of Americans working abroad provides a further boost to the US economy through purchases of goods, services, and investments.

• According to PriceWaterhouseCoopers, the U.S. is the only industrialized country to tax foreign earned income based on citizenship rather than on residence. PWC further stated that this is a major example of the failure of the U.S. to harmonize its tax policies with international tax practice.

• Competing industrialized nations, notably the U.K., Canada, Germany, France, Japan, China, and Russia, aggressively target exports as a major source of earnings and employment. These countries subsidize their exports through the elimination of taxes on the foreign earned income of their citizens working abroad. These countries actively exploit U.S. tax policies by encouraging their nationals to take jobs overseas that would have otherwise been held by Americans if competition was on a level playing field.

• An increase in Americans working abroad increases U.S. exports through a “pull effect” as a result of these products and services. Increasing exports requires a tandem approach at home and abroad to increase exports and make the U.S. more competitive in the global market.


Conclusion • The U.S. is no longer the world’s sole supplier of state of the art technology, products, and services.

• Expatriate American workers support U.S. economic growth and domestic job creation.

• U.S. tax policies need to be harmonized with those of our major competitors to promote exports and create jobs in the U.S.

Frequently Raised Objections

1. Given these difficult economic times, now is the time to raise revenues by eliminating tax preferences for expatriates.

Response: The Section 911 Foreign Earned Income Exclusion promotes job creation in the U.S. With more than 20 million Americans out of work, job creation should be the priority. We are currently allowing competitor nations to under-price us and promote their exports at our expense.

2. PAYGO rules require revenue offsets for all tax cuts in order to eliminate deficit spending.

Response: The projected cost of maintaining or increasing the Section 911 Foreign Earned Income Exclusion does not factor in government revenues from jobs and GNP created through exports. In addition, earnings of Americans working abroad are recycled back into the U.S. economy through purchases of goods, services, and investments.

3. Why should we give tax breaks to expatriates that are not available to U.S. based employees?

Response: We should actively pursue tax incentives that increase exports and promote job creation in the U.S. The savings of government benefit payments resulting from reduction of the unemployed and the lower consumption of government services due to the ‘absent workers’ is a realistic (but un-scored) offset for the un-levied taxes. The improvement in quality of life for families being lifted from the roles of unemployed far exceeds the quantifiable cost savings. Due to the fact that other western countries charge no income tax on foreign earned income, the individual Americans’ perceived tax benefit is usually netted by the overseas employer.

4. Why don’t American corporations fight for the Section 911 Foreign Earned Income Exclusion?

Response: Our tax code incentivizes American corporations to hire non-Americans for their foreign operations. American companies have therefore made the decision to hire non- Americans for their foreign operations, because they are approximately 30% cheaper to employ than Americans.

FEIE LESSONS LEARNED DURING DOOR KNOCK:

MECACC conducted more than 160 meetings on Capitol Hill with a focus on the FEIE.

Persistence pays. A message that we heard consistently on Capitol Hill was that MECACC’s persistence is paying off. Many of the meetings during Door Knock were conducted

by staff that had been visited during past MECACC Door Knocks and were already well versed on our issue. Our persistence and branding on the Hill has kept many doors open for MECACC and made scheduling the Door Knock meetings an easier sell during a very busy time on the Hill. The Door Knock reinforced our message, once again, and at a critical point in time. The exercise confirmed that sustained, well-coordinated, and robust Door Knocks conducted each spring are helping MECACC hammer away on our strategy.

Between Door Knock 2011, the Mini-Door Knock in late 2011 and this year’s Door Knock in 2012, MECACC representatives have been through the doors of more than 60% of all Congressional offices in this Session of Congress. Of those offices a special emphasis was placed on meeting with Members in the House that sit on The House Ways and Means Committee, The House Appropriations Committee, The House Budget Committee, The House Committee on Energy and Commerce, The House Foreign Affairs Committee, The House Small Business Committee, and the Majority and Minority Leadership. In The Senate MECACC focused on meetings with Members on the Senate Appropriations Committee, The Senate Budget Committee, The Senate Finance Committee, The Senate Commerce Science and Transportation Committee, The Senate Foreign Relations Committee and Majority and Minority Leadership. This “hand to hand combat” on The Hill has enabled MECACC to push our message, staffer by staffer, office by office, and with genuine anecdotal evidence that our ability to sell American goods and services depends on our policymakers helping to level the playing field for our sales force.

One conclusion that most Door Knockers came to was that the 2013 Door Knock will be vital to the future of the FEIE. There will be a new Congress, and possibly, a new Administration. Most Members and Hill staff agree that there will likely be a real attempt to revamp the tax code in 2013, without an election looming, and with the winning side feeling that there is a mandate for change. An early Door Knock in 2013, possibly in March, will enable MECACC to make our case before any real major tax reform takes shape.

Door Knocker also uncovered more than 40 Members of Congress who expressed an interest in having a MECACC Trade and Export Event in their Districts and States. CCG is sending these Congressional offices proposals outlining the potential events and CCG is scheduling follow-up meetings to ascertain which offices are very serious about hosting an event. CCG will propose 10 potential Trade and Export Events to the MECACC Steering Committee based on the location and potential for various Members of Congress to advance our FEIE agenda as well as our FATCA agenda.

Offices currently interested in having a Trade and Export Event in their District include:

1. Rep Tom Latham (R-IA/4th) Appropriations

2. Rep Steve Scalise (R-LA/1st) Energy & Commerce

3. Rep Charles Gonzalez (D-TX/20th) Energy & Commerce; House Administration


4. Rep Steve Austria (R-OH/7th) Appropriations

5. Rep Allyson Schwartz (D-PA/13th) Budget; Foreign Affairs

6. Rep Scott Tipton (R-CO/3rd) Agriculture; Natural Resources; Small Business

7. Rep John Carter (R-TX/31st) Appropriations

8. Rep Adam Smith (D-WA/9th) Armed Services

9. Rep Mike Kelly (R-PA/3rd) Foreign Affairs; Oversight & Government Reform

10. Senator Al Franken (D-MN) Judiciary; Energy & Natural Resources

11. Rep Lee Terry (R-NE/2nd) Energy & Commerce

12. Rep Hank Johnson (D-GA/4th) Armed Services; Judiciary

13. Rep Ted Deutch (D-FL/19th) Foreign Affairs; Judiciary

14. Rep Ed Markey (D-MA/7th) Energy & Commerce; Natural Resources

15. Rep Cory Gardner (R-CO/4th) Energy & Commerce

16. Rep Austin Scott (R-GA/8th) Agriculture; Armed Services

17. Rep Steven Palazzo (R-MS/4th) Armed Services; Science, Space & Technology

18. Rep Jim Sensenbrenner (R-WI/5th) Judiciary; Science, Space & Technology

19. Rep C.W. Bill Young (R-FL/10th) Appropriations

20. Rep Mario Diaz-Balart (R-FL/21st) Appropriations

21. Senator Amy Klobuchar (D-MN) Joint Economic; Judiciary; Commerce, Science & Transportation

22. Rep Tom Rooney (R-FL/16th) Agriculture; Armed Services; Select Committee on Intelligence

23. Rep Andre Carson (D-IN/7th) Financial Services (FATCA)

24. Rep Mike Honda (D-CA/15th) Appropriations; Budget

25. Rep Marlin Stutzman (R-IN/3rd) Agriculture; Budget; Veterans Affairs

26. Rep Ed Whitfield (R-KY/1st) Energy & Commerce

27. Rep Donna Edwards (D-MD/4th) Ethics; Science, Space & Technology; Transportation & Infrastructure

28. Rep Michele Bachmann (R-MN/6th) Financial Services (FATCA)

29. Rep Gary Peters (D-MI/9th) Financial Services (FATCA); Small Business

30. Rep Bob Gibbs (R-OH/18th) Agriculture; Transportation & Infrastructure

31. Rep Heath Shuler (D-NC/11th) Budget; Transportation & Infrastructure

32. Senator Mark Kirk (R-IL) Appropriations; Banking, Housing & Urban Affairs

33. Rep Trent Franks (R-AZ/2nd) Armed Services; Judiciary

34. Rep Diane Black (R-TN/6th) Budget; Ways & Means

35. Rep John Barrow (D-GA/12th) Energy & Commerce; Veterans Affairs

36. Rep Jon Runyan (R-NJ/23rd) Armed Services; Natural Resources

37. Rep Walter Jones (R-NC/3rd) Armed Services; Financial Services (FATCA)

38. Rep Rob Woodall (R-GA/7th) Budget; Rules

39. Rep Jeb Hensarling (R-TX/5th) Financial Services (FATCA)

40. Rep Kathy Castor (D-FL/11th) Budget; Energy & Commerce

41. Rep Brad Miller (D-NC/13th) Financial Services (FATCA); Science, Space & Technology

CCG PROPOSES THE FOLLOWING OPTIONS FOR OUR WORK ON THE FEIE ISSUE:

I. We should not overlook the historic shift that the Ways and Means Committee has taken in relation to advocating a territorial based tax system. This movement should be encouraged and assisted by MECACC with the angle of covering overseas Americans in an overall proposal as well as corporations. Any real legislation on this front will then be driven by corporate America as well as groups like ours. This movement, if successful, is one of the best chances MECACC has ever had at achieving our overall objective of no taxation on income earned abroad.

II. As mentioned earlier, MECACC should set high attendance goals from well qualified, potential Door Knock participants. The 2013 Door Knock should be robust and timed well. This effort will be an excellent opportunity for MECACC to get our FEIE message out early in a new and ambitious Congress without the din of an election year in the background. Additionally, if Door Knock participation increases next year, it should help to build unity within MECACC and the participants can then inform their chapters as to the important, ongoing work that MECACC is doing on behalf of all AmChams in the GCC.

III. It is recommended that MECACC conduct as many Trade and Export Events as possible in 2013 to gather as many champions for our FEIE cause up front in the new Congress. These events strongly promote our mission of helping potential American exporters to explore opportunities for sales and job growth in the GCC market. They showcase each Member of Congress as forward thinking policy makers who are focused on job growth and exports. They allow MECACC to help our new friends politically. And, these champions will be more likely to lead on our issue once they realize what good they can do for the economy by helping to level the playing field for Americans who live and work abroad.

IV. While the progress on the Ways and Means Committee is an encouraging opportunity for MECACC, CCG suggests that MECACC create additional opportunities to at least raise the FEIE from its current low level. MECACC should call on its proponents such as Congressman Mulvaney, Senator DeMint, Congressman Moran, and Congressman Meeks to reach out to the other 30 lawmakers who have already co-sponsored the Working American Competitiveness Act and get them on board again in the next Session of Congress to co-sponsor a stand-alone Bill once again on raising the FEIE to $175,000.00 per-year, with an inflation adjustment included annually. New champions we accumulate through Trade and Export Events should be recruited to find supporters as well. Once coordinated and sponsored, this new legislation could ultimately be included as an amendment or a rider to a larger omnibus tax or trade package.


reporT

CCG has been monitoring FATCA on The Hill and we have been following up on the issue as events around FATCA are rapidly unfolding. In May, 2012 Door Knock teams visited 13 Members of the House Financial Services Committee to make our case to those leaders. MECACC’s teams visiting these particular Members of Congress had the following message:

• Starting in 2014 (moved from 2013), foreign financial institutions will be required by the U.S. government under the Foreign Account Tax Compliance Act (FATCA) to report information regarding accounts of U.S. citizens to the IRS. This law requires foreign financial institutions (FFI) such as your local bank, stock brokers, hedge funds, pension funds, insurance companies, trusts, etc. - to report directly to the IRS all their clients who are “U.S. persons” (citizens and green card holders living in the USA or abroad). The penalties for the institutions that do not cooperate are steep.

• FATCA also requires U.S. citizens who have foreign financial assets in excess of $50,000 (in some cases) to report those assets on a new Form 8938 to be filed with the 1040 tax return starting tax year 2011. Instructions for form 8938 were published in December 2011.

MECACC Supports Repealing FATCA In 2012

• FATCA will destroy the lives of average, honest and hard-working Americans no matter where they live. Reporting on foreign bank accounts, pension plans, annuities, and property just because you hold these assets overseas is discriminatory.


• If this isn’t bad enough, think what will happen when foreign banks, insurance companies and financial institutions begin refusing Americans as clients and divesting in U.S. securities. Foreign investment in the U.S. amounts to $21 trillion and $10.5 trillion of this is invested in U.S. securities. A KPMG survey indicates that only 36% of financial institution will comply with

FATCA leaving 64% considering divesting out of U.S. securities. If even a fraction of those foreign investors divest, the loss to the U.S. would be in the trillions of dollars--This at a time when the U.S. economy desperately needs more foreign investment, not less.

Conclusions

• MECACC informed Members of The U.S. Congress about how this Act was “slipped into” the Hiring Incentives Bill of 2009 and was not properly reviewed; most in Congress were not even aware of the content of the law, let alone the implications.

• FATCA will significantly discourage foreign investment in the United States due to the threat of withholding 30% of their funds. FATCA will negatively impact U.S. businesses and American entrepreneurs operating in global markets; it has already turned American citizens into pariahs in the international world of finance as foreign financial institutions close off banking relationships.

• FATCA is not necessary and requires heavy administrative costs that exceed any potential for additional tax revenue; the IRS already has many other tools to go after tax evaders. FATCA is an unacceptable manifestation of U.S. financial imperialism that imposes U.S. law on the rest of the world; this can lead to a systematic destabilizing of international financial markets

MOVING AHEAD ON FATCA

While FATCA was a new issue being discussed during our trips to The Hill, the issue has ignited since our initial meetings in Congress. The Government Accountability Office issued a report this week and has disclosed that, as the implementation of FATCA should provide the Internal Revenue Service (IRS) with a substantial amount of new information, Congress has asked for a review of how it plans to manage that information.

Given that FATCA was enacted to improve tax compliance with regard to foreign accounts and entities, and cross-border transactions, the GAO’s objectives were to assess the IRS’s approach for implementing the FATCA requirements, to assess the extent to which the IRS has developed plans to use the information from FATCA to improve tax compliance, and to determine the extent to which the IRS is incorporating leading practices to develop its cost estimate for implementing FATCA.

CCG has learned that following its review, the GAO has ascertained that the IRS has taken initial steps to implement FATCA requirements in line with normal implementation practices, including establishing a team to manage the implementation process and issuing guidance and proposed regulations, and it has also involved external stakeholders in the implementation process.

FATCA UPDATE


CCG has also learned that The IRS has also communicated initial information to its staff. However, although the IRS assessed the risks of some aspects of FATCA implementation, it has not consolidated existing risk assessment information or future risk assessment plans into an overall risk assessment. Without a consolidated assessment, the GAO noted, there is less assurance that all risks have been comprehensively identified.

In addition, the GAO has found out that the IRS plans to compare multiple sources of information to identify US taxpayers and FFIs failing to comply with the FATCA requirements and, more broadly, taxpayers failing to report their overseas income. However, while the IRS has begun to discuss how it will use information to improve compliance, it has not yet completed or fully documented a broader strategy for doing so.

For example, it has not developed key internal milestones for accomplishing the tasks necessary to enable it to use FATCA information to improve taxpayer compliance or performance measures to assess the cost and benefits of its compliance efforts.

Nor, has the IRS developed a comprehensive resource estimate for FATCA implementation. Without a timeline to develop the estimate, the GAO concludes, the IRS may not be able to develop a reliable cost estimate and therefore risks not communicating key cost information to Congress and IRS management in time for them to make decisions affecting the implementation of FATCA.

Therefore, in order to improve FATCA implementation, but recognizing that IRS is phasing in implementation, the GAO recommended that the Commissioner of Internal Revenue take the following three actions, which may evolve over time: develop a consolidated risk assessment; complete a broad strategy, including a timeline and performance measures, for how the IRS intends to use information collected based on the FATCA requirements to improve tax compliance; and establish and document a timeline for completing a comprehensive FATCA cost estimate.

The Foreign Account Tax Compliance Act can still be repealed. FATCA presents what military planners call a target-rich environment for, first, rendering unenforceable the partnership agreement and the FATCA regulations, and then for final repeal of this monstrosity.

Indeed, teams of lobbyists are being deployed this week and next to The Hill in a well-funded and coordinated attempt to bring down FATCA.

Powerful Members of Congress, including Congressman Charles Boustany, have been leading a new charge in The House of Representatives to repeal FATCA. CCG feels that The Private Equity Growth Capital Council seems to be spearheading the lobbying push. This week the PEGCC sent a letter to regulators urging changes to the

Foreign Account Tax Compliance Act in an attempt to open a dialogue regarding several hurdles the industry would have to clear to comply. The PEGCC has shared that letter with CCG and MECACC.

The 12-page letter sent Monday to the U.S. Treasury Department and the Internal Revenue Service calls for a more efficient process for private equity firms with foreign funds or non-U.S. investors required to register as foreign financial institutions, as well as some leeway when dealing with foreign investors unwilling to comply.

The ultimate objective of the PEGCC is to make the compliance process more efficient and effective for both the regulators and the regulated entities without impacting the substantive goals.

Among the changes called for by the PEGCC in the letter, the lobbing group wants a centralized compliance process for firms. Right now, FATCA calls for private equity funds classified as FFIs and all the holding companies that house investments to enter into separate foreign financial institutions agreements.

Without a centralized compliance option, many private equity fund families may be forced to have hundreds of special purpose vehicles enter into separate foreign financial institutions agreements in a manner that would not be effective for regulators or for regulated private equity firms.

MECACC is actively engaged on this issue and CCG will keep MECACC updated as events unfold inside the Beltway that could shape the future of FATCA. For now, MECACC can rightfully claim that we were among the very first business associations to bring this side of our issue to the decision makers in Congress who will ultimately shape the future of FATCA.


bod

Chairmangregg stevens

Companyinternational Business Consultant

Telephone2563.4042

[email protected]

Term: May-2014

Secretaryfred shuaibi

CompanynDR international

Telephone2242 6037

[email protected]

Term: May-2014

Board MemberLuis suarez

CompanyKAPiCO group Holding Co.

Telephone2563 4042

[email protected]

Term: May-2013

Board Membertareq Al Mousa

CompanyAgility Defense & government services

Telephone2498 1100

[email protected]: May-2012

Vice Chairmanscott Beverly

CompanyKgL Holding

Telephone1888 700 Ext. 219

[email protected]

Term: May-2014

TreasurerLionel gittens

CompanyAmerican general trading & Contracting w.L.L. (Agt)

Telephone2563 4042

[email protected]: May-2012

Board MemberEric LangCompanysupplyCore M iddleEast

Telephone9760 2496

[email protected]

Term: May-2013

Board Membergae Lyn Anderson

CompanyKuwait University

Telephone5548 3052

[email protected]

Term: May-2012

ABCK BOARD OF DIRECTORS


Board MemberJassim QabazardCompanysons of Mohammad Hussain Qabazard gen. trading & Contracting Co

Telephone22461196

[email protected]

Term: May-2013

Board MemberBrian freeman

Companyintegrated Environmental solutions

Telephone2563 4042

[email protected]

Term: May-2014

Ex-Officio Board Memberisabella Cascarano

CompanyUs Embassy-Commercial section

Telephone2259 1354

[email protected]

Executive DirectorMona Al fuzai

CompanyAmerican Business Council

Telephone2563 4042

[email protected]

Board MemberLabeed Abdal

Companythe Law firm of Labeed Abdal

Telephone22433707/17/87

[email protected]

Term: May-2013

Honorary Board MemberJafar Behbehani

CompanyDesert star trading Co.

Telephone2484 9830

[email protected]

Executive AssistantMeera ibrahim

CompanyAmerican Business Council

Telephone2563 4042

[email protected]

ABCK ExECuTIvE STAFF


Corporate Members

MeMbers

Corporate Regular

Corporate Associate


AdvertisewiththeCorrespondentwhichisthequarterlymagazineoftheAmericanBusinessCouncil-KuwaitandthepremiermagazineoftheAmericanBusinessCommunityinKuwait.ItispublishedfourtimesayearbytheAmericanBusinessCouncil-KuwaitundertheauspicesoftheCommercialSectionoftheAmericanEmbassyinKuwait.

When you Advertise in the Correspondent you are guaranteed a circulation of 1500 magazines which are personally addressed to:

• Chairmen,CEOsandManagingDirectorsofleadingAmerican&Kuwaitibusinesses. • Ministersandseniormanagersin30Kuwaitiministriesandgovernmentoffices. • TheAmbassadorandCommercialSecretaryateveryembassyinKuwait. • American Business Council Chairmen andAmericanAmbassadors and Commercial Secretaries

throughouttheGulf. • Foreigntradeandeconomicministers,andleadersofAmericantradeorganizations. • U.S.DepartmentofCommerce,WashingtonD.C.

Your Advertisement will be viewed by the major decision makers in the market. Get maximum exposure and value for your money.

Gatefold YoumayalsoadvertisewithaGatefoldDouble,thefrontcoveropensouttorevealaGatefoldFrontPageoffullcoloradvertising.AllthisforthecostofonlyKd 1000.Alltheabovesizesareavailableinmonochromeatareductionof20%onthecolorrate.Discountsareonlyavailableformultipleinsertions.AdvertisementsizeisA4.

To give your advertisement a competitive edge, place an advertisement in the Correspondent. For further information or to view back issues of the Correspondent, contact Meera Ibrahim Telefax: (965) 2563-4042 Email: [email protected]

full PaGe Color Kd 300

inside front Cover Kd 500

double PaGe Color Kd 500

inside baCK Cover Kd 500

1/2 PaGe Color Kd 200

baCK Cover Kd 600

1/4 PaGe Color Kd 130

Give Your Business the Right Edge.Advertise in the

adverTise in abCk


forM

application for Corporate MembershipAmerican Business Council – Kuwait Application for Corporate Membership

Business Name: ____________________________________________________________________________

Mailing Address: ___________________________________________________________________________

Phone Number: _________________________________ Alternate Phone: _____________________________

FAX Number: _______________________ Website: ______________________________________________

Country of Registration: USA Kuwait Other (specify) _________________________________

Type of Entity: Corporation Partnership Other (specify) _________________________________

Membership Category Applied For:

Corporate Regular: Requires ownership of 49% or more by an American citizen, an American

registered business entity, or an entity that is owned 49% or more by an

American citizen or American registered business entity.

Corporate Associate: Requires association with one or more American products as the Exclusive

representative of such product(s), or as the sole registered agent of an

American company providing products or services into Kuwait, or are an

entity for which the sale of American products constitutes a significant portion

of the business of the Company.

Provide a brief description of the Company’s business, products and/or services within Kuwait:

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

_________________________________________________________________________________________

Do you have an interest in an existing Focus Group? No/Yes – Which one? Banking/Finance Defense

Education Environment Health Infrastructure/Transportation Oil/Gas

Would you be interested in starting an Industry Focus Group? No/Yes – What Industry? __________________

Representation:

Authorized Representative (one only): Chairman GM/CEO Other _______________________

Name of Representative: _____________________________________________________________________

Telephone: ___________________ FAX: ___________________ E-Mail: _____________________________

Designated Members*: (Please include a Corporate Individual Application for each person listed)

1. __________________________________________ 6. __________________________________________

2. __________________________________________ 7. __________________________________________

3. __________________________________________ 8. __________________________________________

4. __________________________________________ 9. __________________________________________

5. __________________________________________ 10. _________________________________________

*NOTE: 10 Corporate Individual Memberships are included in the registration for a Corporate Regular Member. 5

Corporate Individual Memberships are included in the registration for a Corporate Associate Member. An unlimited

number of Additional Corporate Individual Memberships may be designated by the Corporate Member upon submission of

a Corporate Individual Member application and payment of the Corporate Individual Member dues for each applicant.

Fee: Corporate Regular – KD 1000 Corporate Associate – KD 1000 Corporate Individual – KD 45

Make checks payable to “American Business Council – Kuwait” or “ABCK”

CORPORATE MEMBERSHIP


forM

individual Member:Eligibility for IndividualMembership is open to those individualpersonswho1)have aphysical presencewithinKuwait, 2) are aUS citizen or the spouse of aUS citizen, 3) are the owner or soleproprietorofaUSbusiness,4)areemployedbyacompanywhoiseligibleforCorporateMembershipbutwhoisnotamember*,5)areanofficialrepresentativeoftheUSgovernment,or6)areaUScitizennotlivinginKuwaitwhodoesasignificantportionofhis/herbusinesswithinKuwait*

Corporate individual Member: Eligibility for Corporate IndividualMembership is open to those individualpersonswho1)haveaphysicalpresencewithinKuwait,2)whoseprimaryemploymentiswithaCorporateRegularorCorporateAssociateMember,and3)whohavebeennominatedbyhis/heremployer.

Name of Applicant: __________________________________________________________________________

Home Address: ______________________________________________________________________________

Spouse’sName: __________________________________E-Mail: ____________________________________

BusinessPhone:___________________BusinessFAX:__________________Mobile:____________________

HomePhone:_____________________HomeFAX:____________________Pager:_____________________

Contact Preference:

PreferredABCKwritteninformationsentvia:E-mailBusinessFAXHomeFAX

Citizenship:

Nationality:U.S.KuwaitOther__________________PassportNo.:_______________

KuwaitCivilID:_________________USVotingState:_______________USVotingDistrict:______________

Business Affiliation (required):

BusinessName:____________________________________________YourTitle:________________________

MyBusinessis:CorporateRegularMemberCorporateAssociateMember

EligibleforCorporateRegularorCorporateAssociateMembershipNotEligibleforCorporateMembership

this application is for: CorporateIndividualMembership-FeeKD45-Forthoseindividualswhosecompaniesarecorporatemembers (No fee if individual is included in Corporate Membership) IndividualMembership–FeeKD60Membershipis:NewRenewal

use of information: IherebygivemypermissionfortheABCKtoincludethefollowinginformationinthemembershipdirectoryoftheABCK:

AllinformationmaybeusedOnlyBusinessInformationOnlyPersonalinformation

Applicant’sSignature:__________________________________________DateSigned:__________________*Membership requires review and approval by the ABCK Board

(For ABCK official use only) FeepaidAmount:_____________DatePaid:______________FeeincludedinCorporateMembership

BoardReviewRequiredApprovedNotApprovedDate:_______________

application for Corporate individual or individual Membership

INDIVIDUAL MEMBERSHIP


The American Business Council Kuwait (ABCK)

Environmental Focus GroupChair: Brian Freeman

Mission StatementThe ABCK Environmental Focus Group strives to encourage both Kuwaiti and American

Business doing business in Kuwait to conduct their business in an environmentally sustainable

manner. The ABCK Environmental Focus Group endeavors to promote public awareness and

responsibility to enhance the environmental condition of Kuwait and the Arabian Gulf and

encourage compliance more fully with environmental regulations.

The ABCK Environmental Focus Group will work to more clearly define the environmental

issues in Kuwait and their impacts to the local community. These activities will be in concert

with efforts to work with all stakeholders to promote enhancement of existing environmental

regulations, promote and support governmental efforts to correct and remediate environmental

impacts, and strengthen and support responsible governmental agencies involved with the

responsibility of environmental stewardship.

E N V I R O N M E N TA LF O C U S G R O U P

E N V I R O N M E N T A L F O C U S G R O U P

E N V I R O N M E N T A L F O C U S G R O U P F O C U S G R O U P

Mission sTaTeMenT


Calendar

Month Date Type Topic

June

12 BOD ABCKoffice

13 FocusGroup Oil/Gas

19 AnnualGeneralMeeting Defense

25 FocusGroup HR/Training

September GeneralMeeting TBD

October GeneralMeeting TBD

November GeneralMeeting Thanksgiving

December GeneralMeeting Christmas

ABCK Calendar of Events & Focus GroupsJune - December 2012

ABCK Location MapTheABCKEnvironmentalFocusGroup(EFG)wasactivein2011sponsoringmeetingsdealingwitharangeoflocalconcernsincludingrecycling,environmentalcompliance,andpublicawareness.Becauseourmissionistwo-fold-tohelpUSbusinessesinKuwaitoperateinasustainablemannerandtopromoteUSenvironmentalrelatedgoodsandservices,theEFGhaslookedatbothcompliancerelatedtopicsaswellasnewtechnologyandsustainablebestpractices.GueststotheEFGcamefromdifferentnationalbusinessforumsincludingtheBritishandFrenchembassiesaswellasparticipationfromKuwaitPetroleumCorporation.MeetingtopicshaveincludediscussionsofthecurrentKuwaitiregulationsandhowUSmilitarybasesarenotfollowinglateststandards,materialrecyclingincludingafieldvisittoKuwait’slargestrecycler-theMetalRecyclingCompany(MRC),technologyreviewsofsewageclean-up,TheEFGsponsoredamonthlymeetinginwhich2seniorKuwaitienvironmentalleaderspresentedtheirviewsonnewprogramsandcurrentthreats.Futureactivitieswillincludeco-sponsoringeventswiththenewlyformedKuwaitsectionoftheAir&WasteManagementAssociation,celebratingthe20thanniversaryoftheExtinguishingofthelastKuwaitioilfireinNovember1991,andanothermonthlymeetinginJanuary2012.

Mrs. Sheila Gittens at The Global Business...

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