UAE Digest Oct '10

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UAE Digest, October 2010 l 1

October 2010

DH 5

Published from Dubai Media City

LEGAL

Wage protection scheme INVESTMENT

Precious silver REAL ESTATE

Boom & Bust review FASHION

Is the luxury market alive?

DUBAI

FASHION WEEK gets going....

MANAGING EDITOR

:

K Raveendran ravi@sterlingp.ae

PUBLIShER & MANAGING DIRECTOR :

Sankaranarayanan sankar@sterlingp.ae

GENERAL MANAGER

:

Radhika Natu radhika@sterlingp.ae

DIRECTOR FINANCE

:

Anandi Ramachandran anandi@sterlingp.ae

Editor

:

Linda Benbow linda@sterlingp.ae

Deputy Editor

:

Manju Ramanan manju@sterlingp.ae

Associate Editor

:

Vanit Sethi vanit@sterlingp.ae

DEsign

:

EDitorial

Ujwala Ranade ujwala.art@gmail.com

Accounts

:

Sujay Raj sujay@sterlingp.ae

Circulation Supervisor

:

Ibrahim hameed

2 l UAE Digest, October 2010

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Contents

DUBAI FASHION WEEK 8 Gold and silver set new highs As world stock markets continue to fall, it is high time to consider precious metals, according to Peter Cooper.

10 Gitex The premier technology event completes 30 years

13 TECHNO

Imagine that

UAE Digest, October 2010 l 3

IN THE

Grace period for vehicles with expired registration

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.E. Mattar Al Tayer, Chairman of the Board and Executive Director of the Roads & Transport Authority (RTA), has directed to extend the grace period set for RTA to start writing-off vehicles whose registration had lapsed more than two years ago up to January 2011 instead of October this year, in order to allow motorists extra time to have their vehicles tested and registered in accordance with the system in place in the Emirate.

The CEO of RTA Licensing Agency Ahmed hashim Bahrozyan stated that the Agency would start writing off vehicles whose registration had lapsed more than two years back or those whose owners failed to renew their registration and have them removed off roads & streets as of the new set timeline; in order to safeguard the safety of road users in Dubai Emirate and realize RTA vision of Providing Safe & Smooth Transport for all.

“Failure to turn up a continuously operated vehicle for a comprehensive check-up for more than two years renders it a non-safe transport means and accordingly poses a threat to its driver, passengers and cargo besides putting the road users in the Emirate in extreme jeopardy,” said Bahrozyan.

“By taking this course of action, RTA is targeting a big chunk of motorists who do not bother to renew their vehicles registration which had expired long ago. Through pursuing this erroneous attitude they are exposing their lives as well as other peoples’ lives to danger, and rendering their vehicles liable to damage as the years pass by, due to the lack of maintenance and repair of faults which keep mounting up,” he continued.

“Vehicle licensing service is being made available at different geographical zones across the Emirate 24-hours a day in addition to the RTA website to save the time and effort of vehicle owners.

RTA has also enhanced its e-services such that the owners of new vehicles, which do not need testing or those which have been tested, can renew their vehicles registration online,” said Bahrozyan in a final remark.

Worth-mentioning is that RTA has linked more than 44 insurance companies with the traffic system such that the details of the insurance certificate and the vehicle will be available online. The array of RTA licensing e-services provided include inquiry about any vehicle, renew vehicle registration, inquiry about driving license, renew driving license, review offences and pay fees, and inquiry about distinguished number plates.

HH Sheikh Majed bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, bowled the first ball at a new 12 lane centre called Switch Bowling in Dubai’s Ibn Battuta Mall, featuring state-of-the-art technology being used for the first time in the Middle East.

The centre also caters to corporate events and team building activities as it features leisure amenities through topof-the-line billiards tables at the Q’s billiards club and four karaoke studios, in addition to a conference room and a food and beverage menu. It also offers value-added treats to its more youthful patrons as a number of computers are available for various networking games at “Networkx”

4 l UAE Digest, October 2010

Ice Land Water Park opens in Ras Al Khaimah Ice-themed water park serves as first phase of family entertainment destination WOW RAK Ice Land Water Park, the widely anticipated ice-themed water park and part of the 125-acre WOW RAK theme park and resort destination in Ras Al Khaimah, was officially launched last month. The water park, designed to accommodate over 10,000 guests daily, opened its doors to the public on September 29 with more than 50 exhilarating water attractions and water slides. Ice Land Water Park also showcases a number of landmark attractions including the world’s largest manmade water fall and the largest rain dance pool in the world.

Managed by Polo RAK Amusement, a joint venture between India’s Polo Amusement Group and RAK Properties PJSC and RAK Investment Authority, Ice Land Water Park is equipped with a full set of in-house utilities, including four megawatt power generation, a water desalination plant capable of producing 525,000 gallons a day and water filtration systems to maintain the four million gallons of pool water, to ensure uninterrupted enjoyment to the visitors. The facility has also been designed to be eco-friendly as it is equipped with two water recycling plants that will recycle water to be used for horticulture purposes.

The Penguin Falls located at the entrance of Ice Land Water Park is the world’s largest manmade water fall that stands 120 feet tall and 540 feet wide with 100,000 gallons of water cascading down its contours each minute. Penguin Bay, an interactive water play area, is the largest rain dance pool in the world measuring 30,000 square feet and offering shaded discos, open

Drive-in movies Fujairah Media Group will open a first-of-its-kind Arabian themed drive-in cinema in Fujairah on 10/10/10 at 10pm. Branded as Arabian Cinemas, the state-of-the-art facility with 3D theatre technology will be an outdoor entertainment complex featuring four drive-in digital theatres that together can accommodate more than 800

discos, rain showers and the ‘Rock Hoppers Den’, which is a fully equipped stage with acoustics and theatre lighting for pulsating performances. Rain dance and on the spot contests will be a regular feature of the Penguin Bay. Other novel attractions of Ice Land Water Park include the Aqua Games, a regular-size soccer field with soft turf, shallow water and rain showers to offer a unique soccer experience; the Coral Reef, which offers real-life snorkelling experience in a manmade coral reef complete with live fish; and the Tundra Baths, forerunners of the modern-day spas and Jacuzzis that carry with them a legacy of therapeutic powers of hydro massage.

There is also the Kids Cove, a dedicated play area for the toddlers with shallow waters, miniature slides and a sand pit; and the Slide Zone with 24 water slides emerging from five towers from heights of up to 110 feet, giving visitors a majestic view and a unique experience as they slide down heavily themed snow-clad mountains and mountain streams.

Offering a unique panoramic view of the Al Hajar Mountains in the east and the Arabian Gulf in the north, Ice Land Water Park also provides a complete range of food and beverage choices to visitors, including food court outlets, buffet and ala carte dining options and platter foods. The venue also has car parking for almost 2,500 vehicles and 75 buses, while the shaded seating areas can accommodate up to 2,000 guests. Walkways are also covered with synthetic turf to prevent slips and provide comfort to bare feet from the heat.

The entire park is covered by an integrated RFID system to include ticketing, access control, lockers, food court and merchandising transactions. Trained lifeguards, wireless radio network covering all critical areas are also part of the safety mechanisms adopted by the facility.

cars at a time so that patrons can view some of the best movies from Hollywood, Europe, the Middle East and Bollywood. Shawarma and eatables and refreshments are available or have a shisha served directly to your vehicle.

The complex also provides a recreation area for children, with a playground, arcade, picnic area and miniature golf course UAE Digest, October 2010 l 5

Colors channel launched on Pehla packages

Bollywood actor Akshay Kumar in the reality TV show Khatron ke Khiladi on Colors channel

Viacom 18 Media Pvt. Ltd, an equal joint venture between Viacom Inc. and Network18, one of India’s leading entertainment conglomerates, has launched its flagship channel, Colors, in the Middle East. The channel will be distributed on DTH exclusively on Pehla packages in all Middle East and North Africa countries through Arab Digital Distribution Company (ADD), the leading DTH player in the Middle East and the North African region. Colors will also be available on cable and IPTV in the UAE through e-Pehla packages on E-Vision and on Du and in Qatar through Q-Tel. After successful launches in the US, the UK, and Australia -New Zealand, Colors now aims to entertain the widespread South Asian community residing in the Middle East and North Africa with its popular fiction series, reality shows and blockbuster Bollywood films. Additionally, the channel is also looking at capturing the local Arab and Arab expat audience, particularly the young generation that is familiar with Bollywood entertainment.

Viewers in the Middle East now will be able to watch the most popular Indian fiction shows including Balika Vadhu, Uttaran, Laagi Tujhse Lagan and Naa Aana Iss Des Laado on the same day as the Indian telecast. They can look forward to an exciting line up of big ticket reality shows including Fear Factor: Khatron Ke Khiladi x 3, hosted by Bollywood’s reigning queen, Priyanka Chopra and Bigg Boss Season 4 featuring the most wanted superstar, Salman ‘Dabangg’ Khan on the channel.

A Bollywood extravaganza awaits them as Colors readies to premiere the latest and the biggest Hindi blockbuster films in the months to come. The exciting movie line-up on the channel includes Akshay Kumar starrer, Khatta Meetha and Tees Maar Khan; Salman Khan’s mega-blockbuster, Dabangg; Ajay Devgn’s gritty thriller, Once Upon A Time in Mumbaai; Sanjay Leela Bhansali’s much awaited, Guzaarish featuring Hrithik Roshan and Aishwarya Rai; Priyanka Chopra’s Saat Khoon Maaf; Sonam Kapoor starrer, Aisha and Abhishek Bachchan-Deepika Padukone starrer Khelein Hum Jee Jaan Sey, amongst others.

Hard Rock Cafe Dubai opening soon The new Hard Rock Cafe Dubai located at Festival Centre is now on its final stage of completion. According to Philip Evans, Director Commercial & Retail Leasing, Al Futtaim Group Real Estate, this latest Dubai landmark will start operating very soon. The brand new 26,400 square foot cafe will have the largest rock and roll shop and the largest guitar in the world.

Saadiyat Island, a natural breeding ground for the endangered Hawksbill turtle, saw the final nest of the 2010 season hatch this summer, with the hatchlings making their way along the beach to the ocean where they will spend the rest of their lives.

Once mature the female turtles will return to Saadiyat to lay their own eggs 30 years from now. In 2010, more than 350 eggs hatched on the northern beach of Saadiyat Island, making it one of the most successful recorded hatchings to date. The deep sandy beaches and natural dune system make Saadiyat Island a safe and protected breeding environment for the turtles. As development progresses on the Island, it will be carefully managed through TDIC’s environmental programme

6 l UAE Digest, October 2010

CHARITY

A flood of charitable events

S

ony Gulf, the regional arm of consumer electronics giant Sony, has contributed $100,000 towards flood relief efforts in Pakistan. The company coordinated with the Pakistan Red Crescent Society to ensure the benefits of its community involvement initiative adequately reached the victims of recent floods in Pakistan.

Osamu Miura, Managing Director, Sony Gulf, said: “We extend our sympathies to people affected by these natural disasters. Our contribution validates Sony’s continued commitment to humanitarian relief throughout the world. We believe it is our responsibility to provide the necessary assistance that will enable them to rebuild their future.”

Also, RUS Aviation, the UAE based aviation service provider, has pledged its support to the Pakistan human relief operation by offering free transportation of United Nations World Food Programme (WFP) cargo to the flood affected areas.

The WFP, which is one of the largest providers of humanitarian relief material to disaster affected regions around the world, has been at the forefront of relief effort in Pakistan during the floods that have ravaged the country and have left over 2 million people homeless.

“This national disaster in Pakistan has caught the world’s attention to an extent that has not been seen before. As an organisation that has been involved in some large cargo movements, we could not just stand and be onlookers,” said Saleh Al Aroud Managing Director, RUS Aviation.

“With WFP’s outreach into the most remote areas of Pakistan which have been extremely challenging, we felt the right synergy. We had all the logistics, transportation and supply chain in place and we are glad that this partnership worked out well,” he added.

Sterling Publications was a gold sponsor at a charity suhoor last month, with staff attending the evening meal, and giving generously to voluntary collections and auctions held during the evening.

The event was organised on behalf of the Mohammed bin Rashid Al Maktoum Humanitarian & Charity Establishment.in aid of the Pakistan flood disaster. Volunteer residents across Dubai pitched in to ensure that they continued to raise awareness of the absolute devastation that has wreaked havoc across an area the size of England. Aid is still required for the many homeless or affected villagers and residents, especially with the approach of the cold and extreme winter.

Pakistan Women’s Forum invited all nationalities to a high tea in Dubai at its annual International Cookery Contest which provided a platform to raise funds in support of relief for the victims of the recent floods. The afternoon included spot prizes, games, quizzes, a raffle draw, an International Talent Show, dances from India, Bangladesh and Pakistan and a high tea. In addition, all ladies were encouraged to bring food, medicines, clothing and blankets for a collection appeal and cash donations were made at the Red Crescent boxes situated in the hotel lobby.

First ladies of more than 18 consulates based in Dubai attended, dignitaries from other Ladies Associations were there as well as dignitaries from Emirates Business Women Council with Sheikha Hind Abdul Aziz Al Qasimi being the chief guest of the event. Madam Sahar Madani, President of Diplomatic Ladies in Dubai and the wife of the Consul General of Saudi Arabia was the Guest of Honour.

UAE Digest, October 2010 l 7

INVESTING

Gold and silver set new highs As world stock markets continue to fall, it is high time to consider precious metals, according to Peter Cooper.

G

old prices are hitting record highs at the moment with investors worried about future inflation and unsure about bonds and stocks. But Peter Cooper, argues that silver is likely to prove a better investment than gold over the next few years.

“I am old enough to remember silver breaking $50 an ounce in 1980” said Editor and Publisher Peter Cooper.

“Thirty years later and silver is still less than half that previous high. That makes it easily the cheapest and most undervalued commodity, let alone precious metal.” he points out that the centuries old average ratio of the silver to the gold price is 15. Today it is four times higher at 60. That leaves a lot of room for silver to outperform gold as precious metal prices really lift-off.

From what Cooper understands, the banks quietly adjusted their silver future positions during the summer. “That helps to explain why silver did not fall in August with stocks under pressure,” he said. “It should have been sold off as an industrial commodity used in electronics among many other manufacturing processes. But it was not. Silver is acting again as a precious metal.”

Silver has to more than double in price just to equal its all-time high set 30 years ago. And it has to more than quadruple in price just to regain its historic ratio to the gold price. And that comes on top of it keeping up with a rising gold price.

So if the price of gold quadruples to

8 l UAE Digest, October 2010

$5,000 as expected within two to three years, then silver has the potential to rise 16 times just to regain its historic relationship to the gold price or to $320 an ounce. If it overshoots the average, as markets almost always do, then a 20-fold increase in the silver price to an all-time high of $400 is on the cards.

“Today, as world financial markets look to re-run the mid-70s, I predict that silver will reach $150 an ounce, with gold peaking at around $5,000.” he recalled that then as now, a massive credit expansion produced a huge bust in property followed by stock prices and that governments re-inflated their economies to counter this deflation.

“It could be different this time but history shows that financial markets follow predictable patterns, again and again.” he went on to say that after an initial price deflation there will be a period of retail price inflation even though

stock and real estate prices will stay low, and bond prices will tumble.

“If we look at the fall in house prices and stocks in the mid- to late-70s scenario, then things do look similar.

Governments have again been taking desperate measures to counter a financial crash, and signs of inflation are already emerging in places as far flung as China and the UK. The next shoe to drop will surely be the bond market which does not respond well to increases in interest rates. This leaves gold and silver.” he observed that silver appears to be the only commodity not to have passed its previous all-time high of three decades ago. “history could be set to repeat itself and this could be a golden era for precious metal investors,” Cooper suggested.

Indeed, Cooper’s latest book released last year, already pegged gold at these dizzy heights. ‘Dubai Sabbatical: The Road to $5,000 Gold’ is published exclusively on Amazon.com.

“My money is on silver, but a mixed portfolio is the sensible way to tread,” he said, cautioning that silver too is volatile. he noted that silver fell by more than gold in the 2008 sell-off due to margin calls in a falling stock market.

“Today, silver is priced less than 30 years ago and could be considered the most undervalued asset around. This makes it a good investment, perhaps the best of all but wait for silver to bottom out in tandem with the stock market around October time; buy it then” he concluded.

BUSINESS

Many Middle Eastern companies lack risk policy Comparative study of UK & ME organisations shows significant gap in risk management adoption

A

comparative “Although our plans and conduct periodic risk assesssurvey of UK and survey indicates ment reviews (UK, 71.5 per cent); and 46 Middle Eastern an upward trend per cent update their risk database after companies conin risk manageproject completion (UK, 39.6 per cent). ducted by Collaboration, Manment adoption Risk management studies are of signifiagement and Control Solutions in the Middle cant value to the region, where project and (CMCS) shows that 59 per cent East, it also shows investment failures commonly trace back of Middle Eastern respondents more room for to poor strategies. have a risk management policy improvement in UAE-based CMCS is a regional in place, as opposed to 73.5 terms of policies provider of project portfolio management per cent in the UK. Of those and practices. solutions for project-driven businesses.

Middle Eastern organizations Project-based It uses advanced solutions from Oracle that do have policies, 59 per companies are Primavera, hard Dollar, Deltek, EcoSys, Bassam Samman cent fully implement the policy especially encourADePT, eTimeMachine, and Synchro to and adhere to pre-defined procedures aged to enforce better risk management meet the unique needs of various sectors for risk management, compared to 73.4 frameworks in light of the volatility of such as Engineering & Construction, per cent in the UK. The results highlight their markets. While projects are inherPower, Energy & Process, IT & Telecomthe need for more improvements to the ently risky, a better understanding of munication, and Government. region’s risk management attitudes and potential hazards and how to prevent or practices. A risk policy is an indication deal with them puts a company in a more Percentage of organisations with Risk Policy in place of whether senior management considers advantageous position, which makes risk management important to their busisound business sense,� said Bassam Samness success or not, and has to do with the man, CEO and Founder, CMCS. commitment to adopt risk management Survey results also showed that, across the organization. among Middle Eastern firms with risk The study, which focused mainly on management provisions, 53 per cent project-based construction firms, analysed develop a complete risk management the degrees of adoption of formal risk plan for each project (UK, 69.3 per cent); management policies and procedures and 53 per cent formally implement their the importance given to risk management as a tool for business success. Among the Percentage of organisations which have a Risk Policy in place key findings from the Middle East were that 45 per cent of firms with formal policies have a dedicated Risk Management Officer to handle the process (UK: 51 per cent); 49 per cent do not start projects without a complete Risk Register (UK: 69.6 per cent); 61 per cent assess each risk against the probability of occurrence and impact (UK: 79.2 per cent); and 69 per cent of management identify risk response actions for high-exposure risks (UK: 72.3 per cent).

UAE Digest, October 2010 l 9

GITEX 2010

Where geeks converse with gadgets In its 30th year, the Gitex has long established itself as the premier technology show of the region

By Vanit Sethi

I

t gets bigger every year, and quite often better too. With more halls added to the main venue at the Dubai International Conventions and Exhibitions Centre at the World Trade Centre, exhibitors and visitors have more space to display their wares and move around in ease. Buyers and sellers have a little more privacy to discuss their deals.

And the Gitex, unfailingly, manages to attract crowds, despite economic recovery being slow and painful.

What is it about this technology event that attracts hordes of visitors from within the country and the region, year after year?

Is it the lure of new gadgets and gizmos available at heavily discounted prices? Is it the attraction of life-changing technology that pulls in the nerds as well as the herds?

Or is it just the hype surrounding it?

Most exhibitors are convinced there’s 10 l UAE Digest, October 2010

nothing quite like the Gitex in this region. Their sales justify their appearance every year. For computer geeks, it is a ‘must-see’ event that they cannot afford to miss for the world. Most visitors are, however, programmed to make a beeline to the WTC, and more particularly, to the Airport Expo for the Gitex Shopper – a more lively event, undoubtedly, than the main one.

For those looking for new products and launches, there were quite a few. For those looking forward to meeting tech honchos, there were Steve Guggenheimer (Corporate Vice-President at Microsoft) and Randi Zuckerberg (Facebook founder Marc Zuckerberg’s sister). For those wanting to broaden their IT knowledge, there was a two-day conference on ‘Cloud Computing’ – the latest buzzword in the digital realm (see box). Thus, there was

no dearth of reasons to attend the Gitex – to each his own.

New launches At the event, Microsoft Gulf introduced a wave of innovative new software solutions under the title of the ‘New Efficiency’ in line with its commitment to using technology to accelerate economic recovery. The new offerings -- Windows 7, Microsoft Windows Server 2008 R2, and Microsoft Exchange Server 2010 -- have been developed specifically to enable businesses to address their most pressing business concerns and strengthen their ability to deliver innovation to the marketplace. The new generation of technology innovations work together to help reduce costs and complexity for businesses.

Microsoft also announced the

availability of a new line of Windows phones in the Gulf region, available in a broad range of styles and prices. With a Windows phone, people can navigate their instrument easily with the touch of a finger and browse the internet on a great mobile browser. People can also connect to a new service that allows them to back up and share data from their phone to the Web. The phones are available from Microsoft partners HTC and Acer at all major retailers throughout the UAE. Then, Samsung Electronics, reinforced its R-Series and N-Series laptops at Gitex. The new R-Series models include the R440, strengthening on Samsung’s 14-inch screen size segment, and the R590 with premium specifications, which builds on the success of its predecessor, the R580. The N-Series new models include the N150P, the second generation model of the N150 available in a wide range of colors, and the N210P, a value-for-money, thin and stylish Netbook.

Samsung also offered visitors a first look at the newly launched Samsung Galaxy Tab for the duration of the show. Powered by the Android Operating System 2.2, the Samsung Galaxy Tab is the first of the company’s tablet devices, representing a new category of mobile products for the company.

Etisalat Business Solutions announced a series of promotions to give customers attractive savings across its entire product and solutions portfolio. In terms of its Business Connectivity services, customers subscribing to the BusinessOne broadband 3 MB/4 MB package received the BlackBerry Storm smartphone for free with the promotion valid until November 18.

Etisalat also announced it has completed the design and implantation of the most modern mobile infrastructure, which is compatible with the latest wireless standards including WiMAX and LTE, within the world’s tallest building, Burj Dubai, to be officially inaugurated on January 4, 2011. Etisalat confirmed that its award-winning fixed-line service, eLife, will also be available to

Ali Farmawy, Vice-President; Richard Reynolds General Manager, Windows Commercial Product Business Group; Steve Guggenheimer Original Equipment Manufacturer Division; and Charbel Fakhoury, Regional General Manager, Gulf Region; during the launch of new Microsoft products at Gitex-2010

all offices, restaurants, shops, hotels and apartments.

Meanwhile, the UAE Government increased its presence three-fold at Gitex 2010, compared to last year, reinforcing the investments that are being made to boost the UAEs e-infrastructure and transform the country’s digital community. This year, the event saw for the first time, participation from the Emirate of Abu Dhabi Judicial Department, the Ministry of Education and Tanmia (The National Human Resources Development and Employment Authority).

Other government entities included Abu Dhabi Police, Ajman Freezone Authority, Datel Systems & Software, Dewa, Dubai Municipality, Dubai Naturalisation and Residency Department, Fujairah Freezone Authority, Ministry of

Economy, Ministry of Labour, Ministry of Social Affairs, Prime Minister’s Office, Ras Al Khaimah Freezone Authority, RTA and Sharjah Airport International Freezone. The Dubai e-Government enclosure increased its space by three times over last year.

At the event, Ford unveiled its latest driver-focused innovations and technologies with the regional debut of the all-new 2010 Ford Taurus, the Official Gitex Technology Week Car. Ford’s participation marked its second consecutive year as the automotive partner for the region’s largest information and communication technologies platform.

With such an array of attractions, it’s no wonder the Gitex continues to be one of the most popular and awaited events in Dubai.

UAE Digest, October 2010 l 11

This is IT! Here’s a list of infotech buzzwords that one must know in today’s digital world Cloud Computing This is the latest buzzword to hit the techie world. Though it sounds new-fangled, in essence it is nothing new, as it is just another world for Internet-based computing. What is new, however, is that a lot of softwares saved in hard discs will gradually move to the Web for downloading. So, instead of receiving your PC pre-loaded with certain types of programs, you can choose what you want directly from the Internet.

While it’s still slow to catch on, considering that security issues remain of prime concern to many multinational establishments and government departments, much of what we do today on computers is ‘cloud computing’. For example, email services, social networking sites, chatting, blogging are all in the realm of the Cloud. Three types of Clouds are being talked about – Public, Private, and Hybrid. Public Cloud is the Internet, Private Cloud is an internal network, and Hybrid Cloud is a combination of the two.

The just-concluded Gitex 2010 held a two-day conference on ‘Cloud Computing’ where international technology experts tried to sell the idea to decision-makers in the Gulf.

Social Networking Starting off in a rather modest way, social networking is a phenomenon that is taking over our lives. Old acquaintances and long-lost friends are coming out of oblivion to re-establish contacts in the virtual domain. What they do now is captured instantly in words and pictures and transmitted across continents within their worldwide circle of contacts.

While Myspace and Orkut arrived earlier, Facebook literally changed the entire social networking landscape. What Marc Zuckerberg conceived along with his buddies as a close-knit group of university pals expanded into a worldwide network, cutting across all barriers. It is said if the number of Facebook users were to constitute a nation, it would be the third largest in the world today. Other sites such as Twitter and Linkedin have their niches in celebrity and professional circles.

Marc’s sister Randi delighted the Dubai audience with her presence at the Gitex-2010, where she spoke on the Facebook culture, censorship issues and security concerns.

E-Commerce/E-Government With the proliferation of Internet usage across countries, more businesses and governments are finding it beneficial to have their online presence generate revenue while making things easier for consumers and citizens. Buying and selling things on the Internet has been going on for a while now (check out e-Bay, Amazon etc), but governments too are discovering the advantages of having their footprint on the 12 l UAE Digest, October 2010

Web. So, paying your utility bills, renewing your licences, downloading application forms, registration procedures, filing tax returns etc – a number of things can now be done sitting at your desktop.

The Dubai Government’s services have proved to be very popular with citizens and residents in the UAE.

BPO/KPO In the current age of recession, Business Process Outsourcing (BPO), which was a new ‘mantra’ in the 1990s, is now being derided in the West for stealing away jobs from the local market and exporting them overseas. India has been the biggest beneficiary of this trend, so much so that ‘bangalored’ has come to stand for ‘outsourced’ – named after the southern Indian metropolis Bangalore, whose IT industry has made a killing on BPO. This is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, but now primarily used to refer to the outsourcing of IT services. In the US, outsourcing has become a politically contentious issue with President Barack Obama refusing tax-cuts for businesses sending their jobs overseas, and it is expected that during his visit to India in November, BPO will figure in high-level government talks.

KPO or Knowledge Process Outsourcing is the next higher level of BPO, where not just business processes, but knowledge processes are also outsourced. Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled and educated staff. KPO firms, in addition to providing expertise in the processes themselves, often make many low-level business decisions. KPO is expected to generate even more political heat in recession-hit US.

Technological Convergence Technological convergence is the tendency for different technological systems to evolve towards performing similar tasks. Convergence can refer to previously separate technologies such as voice, data and video that now share resources and interact with each other, synergistically creating new efficiencies.

Today, we are surrounded by a multi-level convergent media world where all modes of communication and information are continually reforming to adapt to the enduring demands of technologies, changing the way we create, consume, learn and interact with each other.

Convergence in this instance is defined as the interlinking of computing and other information technologies, media content and communication networks that have arisen as the result of the evolution and popularisation of the Internet as well as the activities, products and services that have emerged in the digital media space.

TECHNO

Imagine that

By Linda Benbow

I

magine a starlit evening with yellow planets and silvery stars twinkling randomly in the sky. Can you see Orion’s Belt or The Plough?

Imagine whisking out your camera and, full of bonhomie for the wonders of nature, clicking the overhead scene to enjoy another time. A photo of the sky without the haze emitted by the world below. Wake up, it’s just a dream. There is no commercially available camera that can capture those twinkles in the pitch black. But at Canon Inc. there are a lot of dreamers in the Research & Development department who have been working on the idea and, at Canon Expo 2010, held in Paris recently, they showed a prototype which will be able to do this and more within the next few years.

The company’s R&D section has been working overtime with 2,204 patents being granted in the United States of America during 2009, placing it fourth among all corporations. During that year the company invested ¥304.6 billion in R&D, accounting for 9.5 per cent of sales.

It proved its worth by showing a number of prototypes at the Expo, as well as demonstrating new items which were launched in various categories. The idea was to introduce new products for the home and office plus demonstrate how innovations impact a wide range of new business areas within consumer imaging products, office equipment, print production, broadcast and communications, medical systems and security solutions.

Phew, and you thought they just made cameras!

Mr Fujio Mitarai, Chairman and CEO of Canon Inc., explained the company’s overall strategy for the next five years, which included those for the imaging industry of tomorrow, new products and services, showcasing of recent acquisi-

tions of products and technologies; and insights into how Canon is implementing cross media imaging. It was attended by employees from Europe and across the Middle East and Africa, their clients and customers, journalists and businessmen.

With all these new ideas abounding it was a pleasant surprise to learn that ‘old’ is ‘new’ in the world of eco-friendliness with a return to old-fashioned human workers as opposed to new fangled robotics and other energy consuming machinery. In cell production, products are assembled by small teams of workers.

This approach enables the company to fine-tune product mix, volume and timing to match market demand.

In March 2010, Canon became the majority shareholder in Océ, one of the world’s leading providers of document management, print products and services for professionals. It exhibited the broadest portfolio of production and large format print systems available to the professional print market. Integration planning by the two companies is well

Pixma Mg8150 camera “The styling concept is to blend well with a variety of interior settings. i used a glossy black rectangular casing, which at first glance appears static and simple. but i took meticulous care to create surfaces, curves and edge lines that would reflect light in a way that emphasises the beauty of a room’s interior.” … Hiroki nakinishi, Designer

A new Consultancy Services business will see Canon collaborate with Accenture to enter an emerging European enterprise information and media management market, predicted to be worth $9.6 billion annually. This new organisation will draw on Canon’s expertise and heritage in information and imaging solutions and Accenture’s leading business management consulting services to target large enterprise companies. The new business is focused on delivering to large organisations a framework to overcome the challenges faced when managing information and media across multiple channels.

An example of this could be to enhance customer experience in a retail bank by streamlining customer facing processes, resulting in halving the time taken to open new accounts

A visual experience that combines the real and virtual worlds in real-time in which the user not only ‘sees’ images in a visual space, but also controls and creates them

UAE Digest, October 2010 l 13

Print free origami patterns downloaded from the Canon website and make your own ornaments

underway and initial steps to combine the two product portfolios are now being taken in Europe, Middle East and Africa.

Océ is already selling a range of Canon devices through its channels and Canon will start to sell its first Océ products at the end of the year.

What would you do if you had thousands of papers filed away for the past umpteen years? One solution is to scan them and save them, as Crédit Lyonnais, a private bank specialising in private wealth management has done by digitising all its documents associated with loan applications and streamlining the associated workflow process.

Another believer in scanning and digital saving is Dorma, a global manufacturer and supplier of door technology products and systems, who captured their paper based information such as delivery notes/invoices, with greater speed and accuracy into their supply chain management system (SAP-based). This has resulted in faster payment and invoice processing as well as cost savings.

“This is a concept exhibit and full commercial use is not yet determined” explained Mr. Yoshiyuki Masuko, Senior Director, Medical Systems Division, Canon Europe, when talking about new medical imaging technologies such as a Photoacoustic Diagnosis device which would be used for looking inside the human body by using optics and ultrasound technology - a non-invasive and radiationfree device which will provide assistance in the early detection of breast cancer and related malignancy diagnoses.

The company is proposing a new computer-aided image diagnosis technology which helps physicians make diagnostic judgments by combining an enormous volume of past images and clinical data.

14 l UAE Digest, October 2010

The next-generation of X-ray imaging will allow dose reduction through wave phasing. High contrast images can be obtained by using original image restoration technology and a 2D X-ray device with an ultra-high aspect ratio. There will be up to 90 per cent dose reduction compared with conventional X-ray imaging. It will also give high-contrast imaging, ideal for soft tissue, which would not be possible with conventional X-ray imaging.

Other systems that are now commercially available include:

Digital Radiography The Mobile C-arm is an integrated digital radiography system equipped with a newly developed X-ray Flat Panel Detector. A high-frame rate linked with the high-sensitivity of an CSX sensor means that a much lower dose of X-Ray radiation is required to provide high quality images, for both static images and mobile fluoroscopic live video. Through the wide C-arm depth, a broader coverage of the patient’s body parts is possible in intervention and orthopaedic surgery.

Eye Care Cross media imaging, capturing high quality images of the retina to generate an exact 3D representation using two medical projectors with the images depicted on speciality printers.

New Medical Solutions Developments Cross reference Information Sharing system under XDS-I, a landmark in hospital IT solutions that links medical information and output equipment to help healthcare professionals in different

TSE 17mm f/ 4L & TS-E 24mm f/3.5L 11 camera “I revamped the design to improve on previous models’ ease of operation and manipulation. The layout works so that when the lens is attached to the camera body, the users fingers can find the levers effortlessly. At the same time, I was careful not to make the levers too long so that they would not get in the way when the camera is in use.” Masahito Owada, Designer locations to make diagnostic decisions quickly prior to surgery, etc.

Canon has 70 years experience in medical imaging, specifically in the fields of radiography and eye care. In February 2010, the company acquired Polish company OPTOPOL, a leader in Optical Coherence Tomography for eye care, which is the technology used to aid in the early detection of retinal diseases. This is an area expected to see significant growth as age and lifestyle related diseases such as diabetes, which can be detected early by changes in the retina, become more common.

With plenty of new ideas to think about and technicalities to mull over, it was amusing to see the amount of suits that walked past a toy area, ignoring the cute animals that sat on a shelf. But further watch-and-see noticed that most of the businessmen and businesswomen returned to the shelf to see how the toys fitted into the working environment, and whether they could have one to take home. The retail section of the company, with its CCTV cameras and point-of-sale scanners, had added a bit of fun to their area. The origami creatures, along with other patterns to choose from, are freely available on the company website along with folding instructions. Bon chance.

ENTERTAINMENT

New lagoon cleaning boat in Sharjah Efficient boat collects up to 100kg of recyclables daily from polluted waterways during trial phase

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andeef, a division of Bee’ah, The Sharjah Environment Company – has introduced an innovative and highly efficient lagoon cleaning boat to its existing fleet of environmental upkeep vehicles.

According to Operations Director, George Yanos: “Tandeef made the decision to introduce a lagoon cleaning boat to Sharjah waters after hearing the community’s concerns regarding the state of the area’s waterways. Tandeef had the boat designed and built in Sharjah and so far it has proven to be highly efficient and easy to maintain.”

The simple fisherman-style boat – currently in its trial phase

– features custom-built ‘side wings’ and is able to collect up to 100kg of recyclables per day; that is double the amount that was being collected using Tandeef ’s old boats.

Tandeef ’s newest boat was put to water during the summer and is being closely monitored by the company’s research and design team. Since its pilot phase began on the waterway along the Corniche of the Al Khaled Lagoon, the boat has undergone minor design changes to improve efficiency.

As a result of the floating recyclers’ success, Tandeef is currently preparing to build a second boat, with a flotilla of five additional boats expected to be introduced in future.

UAE Digest, October 2010 l 15

Sustainable multi use of water in district cooling New system to prevent water loss in cooling’s daily operations Emirates Central Cooling Corporation (Empower), the largest district cooling service provider in the region, has adopted a world class innovative system in water recycling to reuse the chilled water several times aiming at remarkably saving energy.

Ahmad Bin Shafar, CEO of Empower said: “Empower tops its priority in preserving water resources through reducing the consumption of water used in providing district cooling services to its clients.”

“The Executive Council in Dubai has ordered all district cooling companies in the emirate not to use desalinated water in its operations and to use sea water and recycled sewage water instead. This aims at conserving the energy resources of the Emirate for sustainable development. Community segments have to adopt the principles of energy conservation as their core values so that future generations will gain the maximum benefit,” explained Al Shafar.

He added: “Very few are the district cooling companies in the world which use this system. It is our belief that adopting this

system will contribute in saving water resources in light with the population increase. In this part of the world cooling is essential for more than eight months a year, and this makes it more imperative to not only take what the modern world has to offer but also go the extra mile by innovating new technologies for the good of our children.”

Compared with conventional ACs, district cooling are 50 per cent more efficient from conventional cooling. In addition to water saved with the use of this innovative system, Empower managed to reduce the electricity loads in Dubai by providing district cooling service to a wide array of projects in the emirate including Mirdif Gate Buildings, Dubai International Financial Centre, Dubai Healthcare City, Jumeirah Beach Residence, Culture City, Business Bay and City Of Arabia.

Recycling print cartridges Move to help reduce emirate’s technology waste Dubai Municipality has joined hands with HP Middle East in a major environmental initiative to recycle toner cartridges, a move that will help reduce technology waste in the emirate.

The ‘What goes around comes around’ campaign, organised as part of the HP Planet Partners Programme provides a free, easy, state-of-the-art return and recycling service for original HP toner cartridges. Recycled plastic from collected cartridges will be used to produce new original HP cartridges as well as other products.

“The PC Refurbishment Centre collects used PCs, printers and other accessories from the public and private establishments as well as from individuals and refurbishes them by updating the programmes carrying out the necessary maintenance and send them to poor and needy people all over the world, including schools and voluntary organisations,” said Hamdan Al Shaer, Director of Environment Department “HP was the first computer manufacturer to operate its own recycling centre in 1997 and now we have the only closed-loop ink cartridge process on the planet. We’re on our way to recycle over two billion pounds of products and materials as part of our constant endeavour to reduce technology waste,” he said.

16 l UAE Digest, October 2010

As per the Planet Partners Program, HP has installed a number of empty cartridge collection boxes in different organisational units in the Municipality. The turnaround time for delivery and box collection is five working days.

Ahmad Bin Shafar HP Planet Partners Programme is a free service available in over 50 countries, regions and territories and 265 million units of inkjet and HP LaserJet cartridges have been collected through the programme so far.

It is estimated that 300,000 tonnes of carbon dioxide equivalent (CO2e) emissions were avoided through HP’s recycling activities in 2008. To date, HP has recycled 1.71 billion lbs of electronic products and supplies.

In 2008, HP used 10.5 million pounds of recycled plastic resin as raw material in the manufacture of Original HP print cartridges, keeping more than 320 tractor loads of plastic from landfills.

EDUCATION

Shadow education Professor Mark Bray says statistics do not adequately highlight the intensity of private tutoring

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hadow education, or private supplementary tutoring, is not being given adequate importance because of the priority accorded to mainstream tutoring. however, it strongly impacts the financial and social status of individuals and school systems, as it reflects the changes initiated in mainstream education and resonates with people worldwide, according to Prof.

Mark Bray, Chair Professor Director of Comparative Education Research Centre at the University of hong Kong.

Prof. Bray shared his research findings and personal comments during a lecture on ‘Confronting the shadow education system: what government policies for what private tutoring?,’ which is also the title of his most recently published book.

The event, held at the Dubai School of Government, a research and teaching institution focusing on public policy in the Arab world, was attended by academic professionals and executives from Dubai and the UAE. Focusing on the shadow education system of private supplementary tutoring, Prof. Mark Bray examined its scale, nature and implications in a range of settings and identified the possible government responses to the phenomenon. he said: “Supplementary private tutoring can have positive dimensions. It helps students cover the curriculum, provides a structured occupation for young people outside school hours, and offers income to the tutors. Shadow education may also have negative dimensions, as gauged from the South Korean experience. If left to market forces, tutoring is likely to maintain or even increase social inequali-

Prof. Mark Bray

ties and can create excessive pressure for young people who have insufficient time for non-academic activities. Additionally, school teachers providing extra tutoring in exchange for fees from their own pupils is definitely another serious problem.”

Prof. Bray also discussed the cost associated with private tutoring, which has long been vigorous in East Asia, but is also currently emerging in Africa, Western Europe, North America, and Australia with deeper roots in Eastern Europe. According to published surveys, Greece’s expenditure in 2007 on private tutoring amounted to €1.7 billion.

In 2009, Germany spent €1.5 billion, whereas in South Korea it reached a total of $24 billion in 2006, equalling 2.8 per cent of its Gross Domestic Product (GDP).

As for the UAE, and according to the Abu Dhabi household survey in the

fourth quarter of 2009, nearly 27 per cent of Emirati families with children spent an average of Dh1,436 per month for private tutoring, equivalent to 4.8 per cent of a monthly household expenditure. Yet, no research has been published regarding the intensity of tutoring, such as the number of hours in a week or frequency during a year.

Education expert and DSG Acting Director of Research Dr. Natasha Ridge said “Prof. Bray’s discussion was enlightening. Understanding and researching can help regulate tutoring and divert private coaching in a direction that can benefit the society and the school system.”

Professor Mark Bray has taught at the University of hong Kong since 1986.

Earlier, he was a secondary school teacher in Kenya and Nigeria, and taught at the Universities of Edinburgh, Papua New Guinea and London. In 1995, he became visiting research fellow at the World Bank in Washington DC, and from 2006 to 2010 was Director of UNESCO’s www. iiep.unesco.org/” \t “blank” in Paris.

The Dubai School of Government (DSG) is a research and teaching institution focusing on public policy in the Arab world. Established in 2005 in cooperation with the harvard Kennedy School, DSG aims to promote good governance through enhancing the region’s capacity for effective public policy. Toward this goal, it also collaborates with regional and global institutions in delivering its research and training programmes. In addition, it organises policy forums and international conferences to facilitate the exchange of ideas and promote critical debate on public policy in the Arab world.

UAE Digest, October 2010 l 17

The new academic year is under way University campuses offer several new graduate and under-graduate programmes Dubai International Academic City (DIAC), a member of TECOM Investments Education Cluster, started the academic term in mid-September with students enrolled in over 30 universities within the cluster. The campuses offer over 300 higher education programmes including diplomas, undergraduate degrees and post-graduate degrees. The 2010-2011 academic year will also witness the launch of several new programmes by institutions such as Manipal University Dubai, University of Wollongong in Dubai (UOWD) and American University in the Emirates.

Heriot-Watt University and Manipal University Dubai have announced expansion plans that include construction of additional buildings.

Dr Ayoub Kazim, Managing Director, TECOM Investments - Education Cluster, said: “Over the years, Dubai has made significant strides in fostering an education hub for the region. We are well-poised to register further progress as a formidable academic centre. We believe Dubai International Academic City has taken the right step in this long journey to become renowned worldwide for excellence.”

Manipal University Dubai currently has 1,600 students and offers undergraduate and graduate programmes in Biotechnology, Information Technology, Management Studies, Media and Communications, Fashion Design, Interior Design and Bachelor of Engineering. The university recently announced plans for a new 250,000 square feet campus in DIAC that will feature library facilities with reading hall, state-of-the-art infrastructure with modern academic amenities, sports complex and a food court. Starting this academic year, it has introduced 18 l UAE Digest, October 2010

Dr. Ayoub Kazim

Bachelor of Engineering in Computer Science and Bachelor of Science in Animation programmes to keep pace with the increasing demand for new courses.

American University in the Emirates has introduced new programmes including Bachelor’s Degree in Law and Business Administration, Master of Arts in Diplomacy and Master of Business Administration.

University of Wollongong Dubai (UOWD) offers a new Doctor of Philosophy (PhD) programme. Along with the recent accreditation of the Doctor of Business Administration (DBA), the new course makes UOWD the first nationally accredited private university in the UAE to offer PhD and DBA programmes.

Rob Whelan, President, UOWD, said: “UOWD had its biggest enrolment ever in Spring 2010. There has already been significant interest in our doctoral programmes, with over 600 ‘expressions

of interest’ thus far for the limited number of seats available. Interestingly, almost 50 per cent of the enquiries are from UAE nationals. These candidates will now be able to pursue an international standard doctoral programme in Dubai without having to travel overseas.”

Heriot-Watt University, one of the UK's leading universities for business and industry, set up base in the TECOM Investments Education Cluster in 2005 offering a range of courses both at the undergraduate and graduate levels. HeriotWatt held a ground-breaking ceremony in July 2010 for a new campus in DIAC that is set to treble its capacity and significantly expand its course offering. As a part of the new development, the 300,000 square feet state-of-the-art modern and eco-friendly complex will be set up, extending the 1,500-student campus to accommodate a further 3,000 enrollments.

Prof. Ammar Kaka, a Vice-Principal of Heriot-Watt University, Executive Dean and Head of Heriott-Watt University Dubai Campus, said: “Our intake has grown by 30 per cent, compared to September last year, matching the growth level of the previous year. A number of new programmes are being offered this September including MSC in Finance, Business Management with International Marketing, Business Management with HRM, Business Management with Finance and International Accountancy and Finance. Programmes such as Civil Engineering, introduced last year, have been very successful and we have seen at least a 50 per cent growth in students’ intake this year. We are now proposing to introduce 10 extra programmes for September 2011 in line with our plans to move into the new purpose-built campus.”

Standardised higher education systems An expert in professional education has urged Arab colleges and universities to standardise their programmes.

Mark Andrews

Referring to the Bologna Process, which created the European Higher Education Area by making academic degree and quality assurance standards more compatible across Europe, Mark Andrews, MENA Director, Edexcel said: “Education is not only what we learn in college or university. Students should be equipped to acquire lifelong learning after graduating. We urge Arab governments to invest more in training their manpower especially since 20 per cent of the population in the Arab region are in the 15 to 24 age group.”

Arab states have to make education reforms their top priority if they want to achieve socio-economic development. The quality of higher and further education in the Arab world is in danger of lagging behind other regions and the entire system requires urgent reform in an effort to ensure this does not happen.

Andrews said pan-Arab universities should modernise the courses they offer and alter the way they operate. The European Commission has published a modernisation agenda for universities which has been widely welcomed by member states and main stakeholders in higher and further education. Moreover, the Bologna Process, through its promotion of pan-European curricular reforms has facilitated the establishment of the European Higher Education Area.

In contrast, the educational systems in the Arab world vary from one country to another. Lebanon, Morocco and Tunisia have adopted the French education system, while other countries typically follow either the American or British systems.

Andrews added: “Arab countries should unify their education systems through a Bologna-type accord. At a later stage, once a strong educational base has been established, Arab colleges and universities should work on enhancing their cooperation with colleges and universities worldwide so that they ensure that their certificates are recognised globally.”

Andrews added that Arab colleges and universities should also interact more with international universities through exchange programmes and professors’ delegations and common research work.

Cambridge ranked world’s No.1 university A new report issued recently has ranked Cambridge as the world’s top university, based on research quality, graduate employability, teaching and how international the faculties and student bodies are. Compiled

by QS TopUniversities.com the report has already received widespread coverage in the world’s media.

The University of Cambridge, which recently celebrated its 800th anniversary, is known throughout the world for the quality of its research and teaching, and for its contribution to education globally through its publishing and international qualifications departments. Regional managers from two of these key international qualifications departments – Cambridge ESOL and University of Cambridge International Examinations (CIE), have welcomed this news.

Every year, more than three million people in 130 countries take Cambridge English language exams run by the University’s Cambridge ESOL department. The range of tests that are recognised by over 11,000 universities, employers and government departments.

Zara Shahid Khan who works with Cambridge ESOL in the Gulf region explains: “We’re very proud of this accolade as it reflects the University of Cambridge’s commitment to education around the world. We apply these principles to the work we carry out when raising the standard of English language ability in the Gulf.”

Operating in 160 countries around the world, and with over 200 schools in the Gulf Region, CIE is the world’s largest provider of international qualifications for 14–19 year olds. CIE offers a broad range of internationally recognised qualifications, designed to develop successful students worldwide. These include Cambridge IGCSE and Cambridge International A Level, taken by 14-19 year olds in the region for over 20 years and internationally recognised by universities worldwide.

UAE Digest, October 2010 l 19

Zayed University offers ICAEW certificate Zayed University’s Institute for Community Engagement (I.C.E.), the university’s outreach arm to the wider community whose mission is to support the economic and social development of the UAE, has become a Partner in Learning of ICAEW (Institute of Chartered Accountants in England and Wales). Through the deal, I.C.E. will offer ICAEW’s Certificate in Finance, Accounting and Business (CFAB) to its corporate clients.

CFAB is aimed at those who wish to develop a general knowledge in finance, accounting and business fundamentals.

It is a stand-alone qualification but can also be used as a stepping-stone towards the renowned ACA (Associate Chartered Accountant) qualification. The certificate has been available in the Middle East since January 2009. It consists of six modules, including business and finance, management information, accounting, law, assurance and taxation principles.

The certificate can normally be obtained within one year and assessments are done online.

Zayed University’s Center for Professional Development, part of I.C.E., provides a range of training and consulting projects and specialises in offering corporate training for business and government to help improve employee effectiveness. Its clients include National Bank of Abu Dhabi, Mashreq Bank, Emirates NBD Bank, Ministry of Finance, and the UAE Central Bank.

Brighton College in Abu Dhabi appoints founding headmaster School to Open in September 2011 Brendan Law has been appointed as founding Headmaster of the Abu Dhabi campus of the leading UK school Brighton College. Brighton College and Bloom Properties had signed a joint venture in 2009 to establish a series of schools around the world, using the college’s brand. Scheduled to open in September 2011 in the heart of Abu Dhabi island at Bloom Gardens community, a development of exclusive new villas, the new school will cater to children aged 3-18 years, though admissions in the first year will be for children aged 3-14.

Lord Skidelsky, Chairman of Governors of Brighton College and an eminent economist, said: “We were looking for someone who had experience of both senior and junior schools with a proven track record in school leadership.

Brendan Law ticks every box. He spent much of his career in a senior management role at Bedford School – which topped the International Baccalaureate league table in the UK this year – and the remainder as Headmaster of Westbourne House School, the leading 3-13 junior school in southern England and one of the best in the UK.” Brighton College Abu Dhabi will draw heavily on its highly successful model, bringing an elite high school education to Abu Dhabi for the first time. The aim is to produce wellrounded, highly educated young people for entrance to leading UK and US universities.

Brighton College, Abu Dhabi has been designed to provide distinct centres for sport, academic, as well as the visual and performing arts; the three areas will be linked by spaces for outdoor learning and social interaction.

20 l UAE Digest, October 2010

LEGAL

Wages protection system The Ministerial Decree 788 of 2009 (Protection of Wages) came into force on 1 September 2009 in the United Arab Emirates. The WPS was implemented in stages and now all employers are required to comply. In this article DLA Piper Middle East LLP respond to the questions they are frequently asked.

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he WPS was designed to protect ‘blue collar workers’ by allowing the Ministry of Labour to create a database that records wage payments in the private sector to help guarantee the timely payment of wages in accordance with the UAE Labour Law. however, we are aware that there is some uncertainty surrounding its scope and application.

Does the WPs currently apply in the ‘Free Zones’?

No. The WPS applies to all institutions registered with the Ministry of Labour across all sectors and industries in the UAE. Therefore the WPS does not currently apply to companies established in the Free Zones in the UAE. We understand, however, that some Free Zones are considering implementing their own Wages Protection System and in fact, JAFZA currently requires all companies to submit monthly salary certificates which list the name of all sponsored employees against which employees’ signatures are required to confirm that all payments have been received. It should also be noted that pursuant to the UAE Labour Law (which is applicable to all UAE ‘Free Zones’ with the exception of the Dubai International

Financial Centre (“DIFC”)) all salaries in the UAE should be paid in UAE Dirhams although we understand that this is not currently enforced in many of the Free Zones. Of course, employers should bear in mind that the Free Zones could change their enforcement policy at any time.

i have received notice from the Ministry of labour that i must comply with the WPs or face penalties, what should we do to comply with the WPs? The WPS requires employers to transfer the payment of their employees’ wages electronically via agents authorised by the UAE Central Bank (a full list of authorUAE Digest, October 2010 l 21

ised agents is available on the Ministry of Labour website (http://www.MinistryofLabour.gov.ae/pdfs/Agents List011009. pdf).

The WPS also requires that employees’ wages are paid at least once a month or on the dates specified in the employment contract if the employment contract specifies payment of wages at more frequent intervals (“Due Date”).

• • •

•

•

The employer should open an account with one of the banks operating in the UAE (if it does not already have an account open).

The employer should enter into a contract with a WPS agent that is authorised by the Central Bank of the UAE to provide the service.

The employer should issue instructions to its bank to transfer salaries to its employees. These instructions should be accompanied by a detailed salary list and a copy of the list shall be sent to the agent.

The WPS will send employees’ details as well as the salary transfer instructions electronically to the Central Bank of the UAE, who will then forward those details to the Ministry of Labour database in order to make sure that the details received correspond with those registered with the Ministry of Labour.

The WPS will send the approved information to the appointed agent in order to start paying the wages.

What penalities can be imposed if we fail to comply with the WPS? Where wages are not paid within a month of the Due Date then the employer may be refused further work permits for up to three months after the date the employer is 22 l UAE Digest, October 2010

in compliance with the WPS depending on the number of previous violations.

Where these sanctions are ineffective against the employer, the Ministry of Labour, at its discretion, may prohibit any other companies under common ownership with the errant employer from receiving further work permits until court proceedings to consider further sanctions have been concluded or until the violation is rectified.

To date there appears to be a lack of enforcement of the WPS by the Ministry of Labour. However, we expect that now the final stage of implementation has passed (31 May 2010) that the Ministry of Labour will scrutinise compliance with WPS more closely.

Can we continue to pay employees salaries into foreign bank accounts?

Our current understanding of the legal position is that it is unlikely to be possible for employers to pay salaries into foreign bank accounts. Our understanding is based on the wording of the legislation which clearly requires salary to be paid into an employee’s bank account in the UAE. There is no reference to any exemptions from this obligation in the legislation. We continue to hear rumours that companies have been informed by the Ministry of Labour that exemptions

from the WPS are possible. However we have made enquiries with the Ministry of Labour and have been advised that it is not possible to apply for an exemption from the WPS at present. The Ministry of Labour officials with responsibility for the implementation of the WPS have advised that they were considering allowing those employees occupying senior/managerial positions to be paid into a foreign bank account abroad although this has not yet been implemented.

Is there anything else we need to consider?

We are aware that it is a fairly common practice in the UAE for an employer to delay cancelling a departing employee’s residence visa and work permit in order to provide the employee with more time in which to stay in the UAE. During such an extension the employee does not receive any salary. Such a practice may now not be possible under the WPS which requires employees to be paid monthly. Employers should cancel visas within a reasonable period to comply with the immigration laws in any event.

Employers may also have to consult with employees who are currently paid in foreign currencies or overseas to explain that the employer is now under a legal obligation to pay salary into local UAE bank accounts.

Employers may also have to consider lodging new standard government contracts of employment with the Ministry of Labour if salaries have been reduced to ensure that the wages payable to employees match the salary details held by the Ministry of Labour.

We shall keep you updated of any developments on the WPS.

FASHION

Luxury has a long history Matthias Schuler, CEO of Roger Dubuis, talks about the changing market in luxury goods

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oger Dubuis was founded in 1995 and, positioned on the cusp of haute horlogerie and adhering to its exacting and exclusive criteria, the brand established its head office in 2001 in Meyrin, Geneva, where two buildings housing ultra-modern industrial equipment were constructed for manufacturing. In scarcely eleven years, the manufacturer has created its 28 often highly complicated movements.

While their technical characteristics require the most traditional horological savoir-faire, their production and manufacturing rely on cutting-edge expertise.

All watch movements bear the ‘Poinçon de Genève’ and, since 2003, have been equipped with the manufacturer’s own balance-spring, positioning the brand’s products at the very apex of prestige haute horlogerie in Switzerland.

An exuberant and original jewellery line was added to the company’s portfolio in 2004. In search of a new lease of life, the Roger Dubuis Manufacture joined Richemont (one of the world’s leading luxury goods groups) in 2008, becoming the ninth watch manufactory to join this very exclusive group. This is an extraordinarily favourable union for the ‘enfant terrible’ of Geneva’s exclusive watchmakers as it will benefit from all the advan-

tages that come from being a member of Richemont.

How has the economic crisis affected the luxury sector?

The last 18 months or so has been a challenging period. The global economic crisis, which stemmed from the over-expansion of credit, saw consumer confidence in most markets collapse in late 2008 after a boom period up to September of that year.

The crisis has structurally changed the market. The market is more concentrated: larger brands gaining market share and clients are paying more attention to detail. The crisis has as a consequence made deep changes in consumer behaviour, as we have experienced with our clients: they focus more on quality, they are looking for experiencing the brand (service), they want understated luxury items and they purchase more carefully.

What’s the plan for the company in uaE, saudi, Qatar, Kuwait, bahrain, oman and lebanon?

For the next years, we are planning to focus our attention on our distribution. We want to have a very exclusive distribution network in this region with the best possible partners, the best stores and the best

Matthias Schuler

“The crisis has structurally changed the market” Matthias schuler

UAE Digest, October 2010 l 23

visibility. We have started already opening Corners in the Gulf region, and by the end of the year, one third of our distribution network will be in the form of Corners or Shop-in-shops. We will keep expanding in the near future.

Can you tell us the size of the luxury watches in the Middle East – per centage market share for dirhams or dollars?

As per the ‘Federation Suisse de l’horlogerie’ report, for the first seven months of the year (Jan-July), 2010 is 20.6 per cent above 2009, and 8.4 per cent below the same period in 2008, in value.

What is interesting to notice though, is that when we take a close look at the Unit Wholesale Value, the Middle East average is 9.38 per cent higher than the global average. The gap was only 5.22 per cent in 2009, while at its peak - just before the recession - the gap was 16.27 per cent.

Basically, this indicates that the effects of the recession are still here; however, their impact is fading away slowly, but surely. We believe that next SIHH will allow us to confirm this positive trend.

As for the UAE, it has ranked for the same period as the 10th importer of Swiss watches with a total of $312 million (316.9 million Swiss Francs). This is approximately 3.63 per cent market share in comparison with the rest of the world.

Greater China (Hong Kong and mainland China) takes the lead with a total of $2.22 billion (2.25 billion Swiss Francs) worth of Swiss watches imported in the country, accounting for 25.75 per cent of the Swiss exports.

The impressive thing, is that the import per capita in the UAE, is amongst the highest in the world after Hong Kong and Singapore.

How many boutiques have around the world? How many you are planning to open?

We have 170 points of sales worldwide and currently have six boutiques in Geneva, Shanghai, Hong-Kong (2), Kuala Lumpur 24 l UAE Digest, October 2010

into opportunities.

The crisis has intensified competition and companies had to adapt their offer to the market to ensure their viability.

Brands had to create more awareness by educating consumers about product quality and brand heritage: customers pay more attention to the content (movement) of the watch than before and are looking for sustainable brands. In addition to that, companies must differentiate themselves.

Last but not least, brands also had to focus on customer relationship management to personalise one-to-one contacts and services.

Easy Diver SED Tourbillon watch

and Singapore. Soon, Kiev, Bangkok and Moscow will be opened.

What are the special markets in this region?

Each region and each market has its own specificities, its own taste and its own challenges. The Gulf region, as a whole, is quite special. We have noticed that customers here are quite well aware of the latest novelties and latest trends. Accordingly, the Gulf customer likes to see a novelty reaching the market first. This was one of the main reasons why we had our latest watch - the EasyDiver - launched in Dubai before anywhere else in the world.

How has the crisis affected the watch industry?

As said previously, the crisis has structurally changed the market including, for the watchmaking industry: lots of small companies disappeared and larger companies had to revise their global strategy in terms of products, communication and distribution. We have taken advantage of this difficult but challenging period to optimise operations and transform them

What new models are being offered this year?

Roger Dubuis will unveil its new watch collection at the 2011 SIHH (17-21 January). Until then, we keep it secret; I can only tell you that we will be presenting a new watch collection for men, one for ladies as well as new chronograph movement. New models will be exposed, including some declinations of dials of models recently presented.

Do you think the luxury sector will continue to grow?

The luxury market and the watch industry will keep growing if companies keep in mind that customers behaviour have changed in their way of purchasing: watch brands must keep developing their creativity while offering watch with a ‘true content’. Clients are looking for quality associated to creativity with a true value for money ratio.

When did the Luxury industry started globally?

Luxury has a long history: let’s refer to the famed Silk Road that started in China in the second century BC! Regarding the hard luxury industry, I would say that it has been strongly developed after the Second World War and by then, the industry has developed more exceptional and extravagant products!

TASTE

It’s all about chocolate The month of September was all about chocolate at Park Hyatt Dubai, where the international chocolatiers of Felchlin, Switzerland showcased the art of making confectionery

By Linda Benbow

L

ed by internationally acclaimed pâtissier Anil Rohira of Felchlin Switzerland, the hotel’s pastry team highlighted the ultimate extravagance of Switzerland’s culinary heritage. Ever since the tasty secret of the cacao tree was discovered, chocolate has become one of the world’s finest treasures.

Chef Anil explained that the best way to know if his desserts and confections are tip-top is to see the reaction of the hotel staff themselves when offered a piece of chocolate as they pass by while doing their duties.

“Before the food goes out to the public, it is nice to get an honest reaction from the behind-the-scenes staff,” he explained.

There are so many chocolates in the market, all with different enticing wrappers, how do you know what a good chocolate is, and what a bad chocolate is?

Read the ingredients section of the wrapper; the fewer the ingredients the better the chocolate, usually, especially if it has cocoa butter listed. You don’t want to see vegetable fats or homogenised shortening on there, or oil. is it true that dark chocolate is best?

It is not true that dark chocolate is a better chocolate because of its intense taste and bitterness. Do not buy labels which say ‘bitter’ or ‘bitter sweet’ or ‘extra brut’ because these are flavouring terms that indicate either over-roasting of cocoa beans – for bitterness – or additions to make it

Chocolate veloute on a chocolate twirl

in terms of bitterness and acidity. The ones from South America will be fresh and fruity.

Why do people feel good after eating chocolate?

Chocolate triggers the release of endorphins in the brain – similar to going for a run on the treadmill – to give a feel-good rush.

Anil Rohira

sweet. Try to identify fruity notes, because this is a fruit, in the roasted beans which should give a pleasant taste, not an over-roasted or burnt bean which gives a bitter taste.

What is your favourite chocolate?

If I am talking as a professional I prefer a darker chocolate because it is so strong in personality, flavour and aroma and gives better opportunities to combine it with fruit, nuts and fillings.

If I am talking personally, as a delight, or pick-me-up, I prefer a lighter, sweet, milk chocolate. are cocoa beans from different countries of differing qualities?

A 65 per cent bean from West Africa and a 65 per cent from South America, although the number is the same, the flavour profile will be totally different. The West African ones will be more intense

Can chocolate be used for savoury dishes?

Yes, it can also be used for cooking savouries. I use it sometimes in pastry to give a “je-ne-sais-quoi” aspect, and I have seen it used in gravies and sauces to give an amazingly rich and smooth taste.

The hotel arranged for separate cookery classes for adults looking for hints for their next dinner party where tradition met innovation with a specially composed Felchlin dessert menu featuring such irresistible delights as a Trio of Rose. Anil shared his versions of brownies, chocolate mousse and small confections.

Children had their own cooking classes delighting in baking cup cakes and chocolate chip cookies.

The hotel’s pastry boutique joined in the fun by displaying Rohira’a range of exquisite desserts and pralines, one more tempting than the next. Guests could buy a Chocolate Passion fruit Cake, Grand Cru Chocolate Bars and Pistache Pralines.

UAE Digest, October 2010 l 25

ENTERTAINMENT

Dancing the night away David Guetta, one of the world’s top DJs and house music mixologists, confirmed as the headline act of the multi-stage, all-night outdoor dance festival Creamfields Abu Dhabi 2010

T

he news that all UAE dance fans have been waiting for is finally here as Flash Entertainment announces that the biggest DJ in the world, David Guetta, will headline Creamfields Abu Dhabi 2010 on December 9th. Dance music living legend, David Guetta is one the world’s top DJs and house music mixologists. he has been touring since his Grammy Award-winning 2009 album ‘One Love’, taking his signature sound of quirky, electro, house and dirty pop to dance fans around the world. Guetta is also one of the worlds most in demand producers and has worked with some of music’s biggest stars including Madonna, the Black Eyed Peas, Kelis and Akon.

Now in its second year, Creamfields Abu Dhabi will once again give electronic music fans of all ages an unforgettable night, as Yas Arena on Yas Island – a new location for this year’s event - is packed with over 20 international and regional DJs. The concert will run from 6.00pm to 4.00am. Over the coming weeks, Flash will announce a number of other global super stars to join David Guetta on the bill.

Talking about his forthcoming appearance in Abu Dhabi, David Guetta said: “I’m really looking forward to headlining Creamfields Abu Dhabi 2010.

Although it will be the first time I have played in the city, I have been to the UAE before and I know just how passionate people are for dance music” “I have seen the other names that are due to play this year and it’s a fantastic line-up; I almost wish that I wasn’t playing so I could enjoy the music and just party with everyone,” he added.

Performances at Creamfields will be held on three different stages providing electro fans with the very best local, regional and international trance, underground and commercial dance music. This year Flash plans to introduce a more eccentric programme of the weird and the wonderful so it’s not just the talent that keeps fans entertained throughout the night.

26 l UAE Digest, October 2010

About Creamfields Creamfields is produced by the people behind the clubbing brand Cream, based at the nation nightclub in Liverpool. It set out to provide the clubbing world with a bespoke large-scale outdoor event and has gone on to become the most popular and renowned open air electronic music festival in the world. Famous for bringing together genre-breaking pioneers from across the DJ and live music spectrum, the structure of the festival features the enormously successful Live outdoor stage and between 8-10 ‘DJ only’ arenas. other Creamfields festivals attracting crowds of tens of thousands have been held in many other countries such as Buenos Aires (Argentina), Andalucía (spain), Punchestown (Ireland), Rio de Janeiro, Curitiba, Belo Horizonte (Brazil) and Wrocław (Poland). the brand has been recognised by the industry and has scooped awards for ‘Best Dance Festival’ 2004 & 2005 in the UK Festival Awards and was Voted ‘Festival event of the Year’ in the House Music Awards 2005.

CINEMA

A comprehensive film market Buying into the reel world of films

T

he Dubai International Film Festival (DIFF) has taken the wrappers off the largest and most comprehensive film market in the Arab world, a multi-faceted initiative that will create unprecedented access to film and talent from the Middle East, Asia and Africa.

The new Dubai Film Market will work ‘from script to screen,’ covering every aspect of cinema from conceptualization to distribution. It will house the Dubai Film Connection, the Festival’s successful co-production market; the Dubai Film Forum, its popular hub for talent development, funding, workshops, and networking; Enjaaz, the Festival’s dedicated post-production support programme; and the proven Dubai Filmmart, previously known as the Dubai Film Market, specialising in content trade, acquisition and distribution.

As the only gateway of its kind between the major film centres of Europe and South East Asia, the Dubai Film Market will represent and further the cinema interests of the more than 60 nations of the Middle East, Africa, South and Central Asia. In doing so, the unified market also cements Dubai’s reputation as an international hub for cinema capital and services.

The Market is also expected to accelerate the Festival’s exponential growth.

Since its inception in 2004, DIFF has drawn ever larger numbers of high-profile delegates, realised projects of scale and produced exceptional results in a short period of time. In three years, the Dubai Film Connection has driven forward 46 film projects, with more than 13 films completed and an additional nine nearing

completion. This year, 15 new projects from the Arab world will be showcased, selected from hundreds of entries.

Enjaaz, the most recent of the DIFF ‘script to screen’ initiatives, supported seven projects in their pilot phase in 2009 and intends to boost another 15 fiction features and documentaries this year. The post-production programme awards between $20,000 and $100,000 to emerging Arab filmmakers to help take their work from the last stage of development to the screen. Enjaaz’s 2009 showcase includes the award-winning Zindeeq and Zelal, recently screened at the Venice Film Festival.

In two years, Dubai Filmmart fielded more than 530 films, prompting more than $2 million in trade deals for more than 130 films in 2009 alone. DIFF offers industry buyers films at their fingertips, via a digital screening system linking sales agents to filmmakers and buyers and eliminating the need for booths.

In 2009, the high-tech system recorded more than 3,350 screenings.

In tandem with its public dimension, the Festival’s business component has been well received around the world.

Industry buyers including Memento Films, France; Fortissimo, the Netherlands; Canada’s E1 Entertainment; India’s Alliance Media & Entertainment; Australia’s SBS Television, the United States’ Shoreline Entertainment, Iran’s IRIB, Belgium’s RTBF, the Walt Disney Company, Moviemax Italia, hBO and

NBC Universal are among its repeat attendees. The entire Arab world’s broadcasters, including Al Jazeera, Rotana, ART, MBC, Orbit Showtime and regional distributors, are represented.

Last year, DIFF drew more than 1,600 accredited industry delegates from 69 countries and 1,500 members of the press, both all-time highs.

“The new Dubai Film Market will reflect a marked upgrade to the way we work, to ensure we offer the most effective and efficient environment for business year-round,” said Shivani Pandya, Managing Director of the Dubai International Film Festival. “From December 2010, delegates will be able to view the current crop of cinema, meet emerging and recognized talent, acquire films, meet the key decision-makers in the Arab, Asian, African and international film worlds, and develop business partnerships. In short, the new Dubai Film Market opens up the world for business.”

Last year’s sixth Dubai International Film Festival also recorded 50,113 admissions for its 168 films from 55 countries, including 29 world premieres, 13 international premieres, 77 Middle East premieres and 33 GCC premieres.

DIFF also disburses more than $575,000 in prizes through its Muhr competition, and participating filmmakers also receive in excess of $400,000 in project grants, completion funds and post-production support.

The seventh edition of Dubai International Film Festival 2010 will be held from December 12 to 19 in association with Dubai Studio City and supported by the Dubai Culture & Arts Authority.

Dubai Duty Free, Dubai Pearl, Emirates Airline and Madinat Jumeirah are the principal sponsors.

UAE Digest, October 2010 l 27

CINEMA

Showing at cinemas during October Ondine Ondine is a lyrical modern fairy tale that tells the story of Syracuse (Colin Farrell), an Irish fisherman whose life is transformed when he catches a beautiful and mysterious woman (Alicja Bachleda) in his nets. his daughter Annie (Alison Barry) comes to believe that the woman is a magical creature, while Syracuse falls helplessly in love. however, like all fairy tales, enchantment and darkness go hand in hand. Written and directed by Neil Jordan - and shot against the Irish coast’s magical backdrop by cinematographer Christopher Doyle - Ondine is a story of love, hope and the unwavering belief in the impossible.

Paranormal Activity “I will show you fear in a handful of dust.”

– T.S. Eliot, The Waste Land After a young, middle class couple move into what seems like a typical suburban ‘starter’ tract house, they become increasingly disturbed by a presence that may or may not be demonic but is certainly most active in the middle of the night.

Especially when they sleep. Or try to.

This film has been rated R for language.

Scott Pilgrim vs. the world Michael Cera plays Scott Pilgrim; he explains the character Q: in your own words, how would you describe the movie?

A: I think it is sort of like a cartoon with real people.

Q: scott Pilgrim is an interesting character because on the surface, he resembles you or me but then, he can become this almost superhero in a world that he created for himself.

A: Edgar Wright created that whole world. So much thought went into it and his ideas were fully realised by the time the whole cast even showed up.

Q: one never presumes from scott’s demeanour that he has these extraordinary physical abilities and yet they come out quite organically.

A: It is like a musical with action. In a musical, the actors will just break out into song with no explanation and you just go with it. We play by those same rules.

Q: The fight coordinators that were brought in previously worked with Jet li and Jackie Chan. Can you walk us through a little what those experiences were like having to do wire work and flips?

A: Those experiences were amazing. Those guys were incredible and impressive and had such discipline.

28 l UAE Digest, October 2010

REAL ESTATE

Eight years in review - legislating for Dubai’s first ‘boom and bust’ cycle Cityscape Global 2010, an interesting forum to compare the state of recovery of dented real estate markets around the globe two years on from the start of the financial crisis

By Lisa Dale

A

s a real estate lawyer based in Dubai, I have found it fascinating to see how the Dubai Government has dealt with its first ‘boom and bust’ cycle that has occurred over the last eight years. In more mature markets such as the USA and many parts of Europe, it is fairly much taken for granted that the necessary laws and regulations are in place to provide for both scenarios. however, when hh Sheikh Mohammed Bin Rashid Al Maktoum announced in May 2002 that real estate in designated areas of Dubai would become available for ownership by foreigners on a freehold basis, there were virtually no specialised laws and regulations in place to accommodate this burgeoning real estate market. The task has therefore been to systematically introduce the necessary new legislation, first to cater for the off-plan sales model largely adopted

by Dubai’s developers, and latterly to address the tensions and conflicts that have ensued between developers, investors and financiers as the flow of money ran dry in late 2008.

The legislative process started with Law No (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai.

This Law provided that foreigners would

be permitted to own real estate in certain areas of Dubai as approved by the Ruler.

Regulation No (3) of 2006 listed the first twenty-three so-called “designated areas”. The list included the majority of the developments then under the course of construction in ‘new Dubai’, including Nakheel’s Jumeirah Palm Island and International City projects, Dubai holding’s Jumeirah Beach Residence and Business Bay projects and Emaar’s Emirates Living (Emirates hills, The Lakes, The Springs, The Meadows) and Arabian Ranches projects.

In 2007, we saw the creation of Dubai’s Real Estate Regulatory Authority (“RERA”), a governmental authority attached to the Dubai Land Depart-

Will Dubai’s real estate market see a recovery?

UAE Digest, October 2010 l 29

ment. Over the last three years, RERA has played a crucial role in developing and supervising Dubai’s real estate regulatory framework. Its first task was the implementation of Law No (8) of 2007 Concerning Guarantee Accounts of Real Estate Developments in the Emirate of Dubai, often referred to as the ‘Escrow Law’. The main aim of this Law was to provide protection for purchasers’ money invested through off-plan sales in developments under construction in Dubai.

More particularly, Law No 8 introduced a requirement for all developers to register both themselves and their projects with RERA and to establish an escrow account for each project for the receipt of purchasers’ money, to be used solely towards the development costs of the project.

Following the enactment of the Escrow Law in 2007, we saw the enactment in 2008 of Law No (13) of 2008 Regulating the Interim Real Estate Register in the Emirate of Dubai. The aim of Law No 13 was to provide protection of purchasers’ rights pursuant to off-plan sale contracts by the registration of such contracts on a newly established Interim Real Estate Register maintained by the Dubai Land Department.

Alongside Law No 13, we saw the enactment of Law No (14) of 2008 Concerning Mortgages in the Emirate of Dubai. Law No 14 established a legislative framework for the registration of lenders’ pre-mortgage interests on the Interim Real Estate Register, as well as mortgages on the main Real Estate Register, together with mechanisms for the enforcement of the same through to eventual mortgagee sale of a property by public auction. Originally intended to provide banks and other financial institutions with the confidence they needed to lend against property in Dubai, Law No 14 turned out to be a timely piece of legislation to deal with the new phenomenon of mortgage defaults brought about by the financial crisis and subsequent property market decline.

The Strata Law, Law No (27) of 2007 on Ownership of Jointly Owned Properties in the Emirate of Dubai, was another major piece of legislation enacted during 30 l UAE Digest, October 2010

the boom years. The implementing regulations to this Law were enacted as Directions in April of this year and developers are now working toward the implementation of compliant strata schemes for their existing projects. Amongst other things, the Strata Law and its Directions empower property owners to jointly manage their communities and buildings. Along with self-management comes transparency and fairness on issues such as service charge levels, contracting with service providers, and the use of common areas and facilities.

The foregoing legislative initiatives each aim to bring regulation, protection and fairness between parties in a positive property market. But what measures has the Dubai Government introduced to address the tensions and conflicts that have ensued between developers, investors and financiers since the flow of money ran dry in late 2008? There is no doubt that Dubai’s off-plan development market has been severely impaired by a classic Catch-22 scenario during the last two years: banks have not been able to lend to purchasers, purchasers have not been able to pay developers, developers have not been able to fund their construction activities and have in many cases ceased or slowed down construction, purchasers have sought to use developers’ failure to

construct as a basis to claim breach of contract and grounds for non-payment, and so on. In this way many projects quickly reached deadlock.

As regards measures taken to address the Catch-22 scenario referred to above, firstly we have seen the enactment of Law No (9) of 2009 amending Law No (13) of 2008. More specifically, Article 11 of Law No 13 in its original form established a process for a developer to terminate an off-plan sales contract in the event that a purchaser defaulted in his payment obligations. Once a sale contract was terminated, Article 11 required a developer to refund to the defaulting purchaser all money paid by him after deduction of an amount not exceeding 30 per cent of such money. Article 11 was drafted in an environment of rapidly escalating off-plan property prices when measures were required to discourage developers from terminating sale contracts in order to resell units at a higher price elsewhere. The change of circumstances brought about by the credit crunch in late 2008 brought an end to this concern.

Instead, it became imperative to ensure that in cases where developers sought termination of a sale contract due to nonpayment by the purchaser, the measure of compensation that a developer could expect would be directly related to his own

progress toward completion of the project and fulfillment of the sale contract. Thus Law No 9 introduced a regime whereby the compensation that a developer could claim in the event of his termination of a sale contract was linked to the stage of construction reached on site. For example, if a developer has not commenced construction for reasons outside his control the developer is entitled, pursuant to Law No 9, to forfeit not more than 30 per cent of the amounts paid by the purchaser. However, if a developer has completed at least 80 per cent of the project, he is permitted to retain all amounts paid by the purchaser and claim the balance of the purchase price from the purchaser as compensation. These provisions were confirmed by Executive Council Resolution No (6) of 2010 that was passed earlier this year, but this Resolution went

further by also establishing grounds upon which a purchaser could seek termination of a sale contract due to the developer’s breach. The Resolution also introduced the grounds upon which RERA could take action to cancel a development project and the process to be followed after such cancellation.

A final welcome legislative initiative this year was Decree No (4) of 2010 Regulating the Ownership of Land Granted for Industrial and Commercial Purposes in the Emirate of Dubai.

This Decree introduced a mechanism to enable holders of industrial or commercial granted lands in Dubai to convert their granted title to freehold title upon payment of a fee assessed against the market value of the land in a deemed ‘unimproved’ condition. The benefits of having freehold title rather than granted title include the ability to mortgage the property to raise capital and to sell the property on the open market (subject to applicable nationality restrictions).

As regards Dubai’s ability to capably deal with the rising volume and specific nature of real estate disputes, we have seen a number of specialised dispute resolution forums introduced in the last two years, namely: the new Property Court;

We have seen a number of specialised dispute resolution forums introduced in the last two years the so-called ‘Bounced Cheque Committee’; and the two Special Judicial Committees established to resolve disputes involving Dubai World and the property finance companies Amlak Finance and Tamweel, respectively. These new forums supplement the already existing Rent Committee and Dubai International Arbitration Centre as popular forums for dispute resolution.

Will Dubai’s real estate market see a recovery? Yes, of course, but it is unlikely that we will see property prices and rental values returning to their dizzying heights of mid-2008. History has shown that real estate ‘boom and bust’ cycles of varying extents are inevitable; the issue is how we deal with their causes and effects. As the foregoing attests, Dubai’s legislative machine has shown its ability to address market needs, in good times as well as bad. For now, Dubai has the opportunity to attract new businesses and residents through its offer of high quality, affordable accommodation and first class city infrastructure…and there begins another cycle.

Lisa Dale is Partner & Head of Property at Al Tamimi & Company

UAE Digest, October 2010 l 31

CITYSCAPE

Talking points of Strata law and regulation

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he Cityscape Connect business breakfast was held ahead of Cityscape Global which was staged from 4 - 7 October 2010 at the Dubai International Exhibition and Convention Centre. Attended by more than 80 property executives, legal advisers and investors, the business breakfast was called to explore the legislation and regulation of the real estate market.

The impact of the recent Strata law - which sets out a framework for how homeowners can manage jointly owned buildings and developments - presented much debate, especially around the subject of service charges, the practicality of owner associations and the implication of short falls in maintenance funds.

The discussion was moderated by Blair hagkull, Chairman, Jones Lang LaSalle MENA, who said a recent investor sentiment survey conducted, revealed the number one priority for investors, with regards to decision making, across the broader region right now was regulation and legislation.

CEO and Managing Director of Strata Global, Kent O’Brien, said the regulations recently brought in were very good, but added: “Unfortunately what we are seeing at the moment are a number of schemes being thrown together, with residential, retail and commercial components all in one homeowner association - I just hope that some of the developers look at that in a more educated way.”

Michael Lunjevich, Partner, head of Commercial and Real Estate at hadef & Partners, mentioned the importance of the Escrow law - which came into effect in 2007 to regulate the sale of off plan property. he said this was the ‘first major step towards regulating a market.’

“Lessons that can be learnt from the Escrow law are that when you try and regulate a market, you need to consider the economic issues around the industry.”

Mr Lunjevich also talked about regulation and how to make people comply. he

32 l UAE Digest, October 2010

Blair Hagkull

award for 2009 was at the fifth consecutive year in Cityscape Global 2010.

UP, with a portfolio of iconic landmarks in commercial, residential and leisure developments such as Green Community®, Uptown Mirdiff®, Index™ the 80 storey multi-purpose building offering state-ofthe-art offices for multinational corporations at DIFC;Limestone house™ and MotorCity®, showcased its flagship project, the 38,000,000 square feet MotorCity development that includes residential, commercial and retail amenities such as: Uptown MotorCity®, Green Community®, MotorCity® and Control Tower™.

said: “Over the last three years, we may have learnt that self-regulation doesn’t really work that well. Of course, bringing in regulations may not work that well either, because some people don’t comply.

In my opinion penalties and deterrence are a way to make people comply. They may not voluntarily comply but if they know there’s a stiff penalty of a huge fine or imprisonment that’s going to be made publicly knowledgeable then they’ll soon come into compliance quickly.”

Union Properties showcases residential, commercial and retail offerings Union Properties PJSC (UP), an investment developer with property development history that spans over two decades and a recipient of the ‘Superbrands’

Index is the creation of the reputed awardwinning architects Foster & Partners, a leading firm of architects in the United Kingdom whose dedication to the art and science of minimalist design has resulted in yet another iconic creation

Limestone House has exclusive lift access serving a limited number of apartments with secured parking entry and access control to operate the designated elevator to the resident’s home