benchmark middle east
FEBRUARY 2016 / VOL. 5 NO. 2
Work + Play = Life
Published from Dubai Media City
FEBRUARY 2016
Black gold blues
Economic hopes and woes of the oil-rich states
benchmark middle east
inside
FEBRUARY 2016 / VOL. 5 NO. 2
Work + Play = Life
February 2016
Published from Dubai Media City
FEBRUARY 2016
Black gold Blues
Economic hopes and woes of the oil-rich states
Cover design Geri Batara Sonny
Work
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By the numbers: Infographics ‘Black gold’ has lost its shine: But can Middle Eastern economies evolve fast enough to avoid being dragged down with oil prices?
10: Oil trends in 2016 11 Top Doom and gloom – or another oil boom?
18
How to work in the oil industry Black gold’s dramatic decline is pushing many global oil and gas companies into the red – and recruitment in the industry has been hit hard.
22
What does low oil price mean for me? Oil prices go up, and they go down. But how worried should we be,given the particularly steep downward curve of the last 18 months?
oil price ever recover? 26 Can Speculation is rife as to where the oil price will go, but we have the definitive answer: It’ll be somewhere between $5 and $200...
is UAE moving away from oil? 30 How ‘Petrodollars’ and ‘diversification’ are probably the
two most overused words in the business press when it comes to the economies of the Arabian Gulf.
BOSS: Interview 34 THE Q&A with Chris Faulkner, founder and chief executive of Breitling Energy Corporation.
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Work: Events planner Here is Benchmark’s guide to the top business events of the next two months.
b e n c h m ar k m i d d l e e a s t | O c t o b e r 2 0 15
PLAY First Borns of 2016 42 Motoring: Auto buffs, It is Time to make merry as the
current year brings with it many new offerings from some of the hottest automotive brands
Amazing Venice 48 Travel: “A quality or feeling of mystery, excitement, and remoteness from everyday life.”
insider: Shangri-La Dubai 54 Travel Staring out at Dubai’s Burj Khalifa at night, the city streets far below a neon racetrack, one wonders how George Gershwin’s Rhapsody in Blue – so synonymous with New York – would sound like played on an oud?
56 Fashion for Her and Him 60 Top Five Properties For Rent 62 Top Five Properties For Sale Events planner 64 Play: Here is Benchmark’s guide to going out over the next few weeks.
Desk-side wellness debrief 66 Health: Five ways to boost your health quotient during the nine-to-five!
O c t o b e r 2 0 15 | b e n c h m ar k m i d d l e e a s t
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5
Editor's Note
D
epending on where you lived there was a time when us everyday folk used to quantify how economics impacted our mundane lives on whether it affected the price of fish, or eggs, or tea in China for that matter. Today there is a measure that we are all too aware of, though how many of us truly understand its impact is debatable, and that is the price of oil. Once riding high at more than $100 a barrel that was a boon for us oil-producing Gulf countries, shielded as we were from the excesses of fuel prices at the pumps due to subsidies. Perhaps we might have noticed its impact on air fares, as airlines cited the cost for the reason fares were up (though have you seen ticket prices drop since?). We didn’t really care though, all in all
high oil prices were good – though expats often pitied those back home filling up their cars while paying through the nose for petrol. However low oil prices is a ‘crisis’ entering the subconscious of the masses even here in the Gulf, as petrol subsidies are scrapped (UAE and Oman have both done so) and the word ‘austerity’ appears on the lips of bosses who looked to cut costs. And so this edition we dive into the issues affecting black gold. Ben Flanagan asks if it is still worth looking for a job in the oil industry (and whether you’re better off considering a career in renewable energies). Our megagraphic also details how much, how fast and who is hurting most from the drop in prices. Ben also tackles the biggest question of them all ‘so what does this all mean
for me?’ He also takes a look at the top 10 trends which could shape 2016 for the oil industry. In The Boss we meet someone who could be considered public enemy number one, being known as he is as the ‘Frack Master’. Thankfully we’ve plenty of relief in our Play section this month as we look as some of 2016 first hot releases in the automobile market. We also travel to stunning Venice to capture the romance of this historic city on water, and we check in to Dubai’s Shangri-La hotel to see what it can offer. Of course we’ve got the top five properties to rent or buy, our essential Play and Work calendars, office health advice, and the latest fashion advice for those who have ‘literally nothing to wear’. Scott Armstrong Chief Executive Editor
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benchmark middle east | February 2016
February 2016 | benchmark middle east
Work Infographics
INNUMBERS NUMBERS IN
‘Black gold’
has lost its shine: But can Middle Eastern economies evolve fast enough to avoid being dragged down with oil prices? Only two years ago the region’s oil exporters, notably those of the Arabian Gulf, were enjoying oil at $110 a barrel. In January this year, the price of Brent crude fell below $28 for the first time since 2003. The IMF has warned that, without swift economic reforms, Middle Eastern oil exporters face a combined $1 trillion budget shortfall over the next five years. But Gulf countries are beginning to take important steps — with the UAE, Bahrain and Oman having already cut expensive fuel subsidies. Here are the vital statistics for the Gulf oil industry, its impact on the economy — and what the future may hold.
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February 2016 | benchmark middle east
Cover Feature Infographics Work
OIL PRICES
$27.67
$100
70%
Brent crude oil price low on January 18
Average oil price between 2008 and 2014
Collapse in oil prices since mid-2014
2003 Year in which oil prices were previously this low
Brent crude oil prices January 2014 - January 2016
Dollar per barrel 2015
2014
2016
120
100
80
60
40
20
0 January
April
Future outlook U.S. Energy Information Administration forecast for average Brent crude price
July
October
January
April
July
October
January
$50
$40 2016
2017
SOURCES: Bloomberg | BBC | Opec | US Energy Information Administration | The World Factbook/CIA | International Monetary Fund
J u l y 2 0 15 benchmark middle east | February 2016
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benchmark middle east
February 2016 | benchmark middle east
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Cover Feature Work Infographics
... but how low can it go?
$20s
$16
Morgan Stanley said a barrel could be worth less than $30 if China further devalues its currency
$10
The Royal Bank of Scotland’s prediction
Standard Chartered says oil could fall to levels not seen since 1998
PROVEN OIL RESERVES
Countries with the largest reserves of crude oil, by number of barrels
(In trillion) >250
100-250
50-100
Venezuela
1
Saudi Arabia
2
Canada
3
Iran
4
Iraq
5
Kuwait
6
UAE
7
Russia
8
Libya
9
Nigeria
10
37.1
United States
11
36.5
Kazakhstan
12
25-50
10-25
5-10
298.4 268.3 172.5 157.8 144.2 104 97.8 80 48.4
8
3
30
20
11 Qatar
10 20
13
25.2 24.7
China
14
Brazil
15
Algeria
16
Mexico
17
9.8
Angola
18
9
Ecuador
19
8.8
Azerbaijan
20
15.3 12.2
16
17 1
9
5
6 2 13
12 4
14
7
10
19 15
18
7
b ebnecnhcm a rakr kmmi di dddl el e eeaasstt | FJ u eb hm l yr u2 a 0 r1 y5 2 0 1 6
February 2016 | benchmark middle east
Infographics Work Cover Feature
7,658,000
CRUDE OIL EXPORTS Biggest exporters of crude oil, by number of barrels per day. Estimated figures from 2012/2013
2,000,000 - 3,500,000 3,500,000 - 5,000,000 5,000,000 - 6,500,000
2,733,000 1 Saudi Arabia
2 Russia
3 Canada
5 Nigeria
4 United Arab Emirates
2,411,000
6 Iraq
2,500,000
2,390,000
7 Kuwait
10 Venezuela
1,824,000
1,358,000
11 Iran
8 Angola
1,322,000
12 Qatar
3
> 6,500,000
1,815,000
1,232,000
13 Mexico
9 Kazakhstan
1,220,000
14 Norway
1,365,000
1,218,000
17 Azerbaijan
15 Algeria
811,300
18 Libya
1,158,000
735,000
19 United Kingdom
16 Oman
703,100
20 United States
833,400
629,400
14
4,625,000
500,000 - 2,000,000
2
19 9 17
20
6
11 7 4 1 12 16
15
13
10
5
8
Oil output – barrels per day (bpd) 660,000 bpd
Drop in production outside the Organization of Petroleum Exporting Countries area expected this year by Opec
380,000 bpd
Forecast decline in US oil output this year
Average daily output required of Opec’s 13 members this year
benchmark middle east | February 2016
31.6 million bpd F e b r u Jaur lyy 22001165 | bbeenncchh m a r kk m mi iddddl el eeea as ts t
11 21
WorkFeature Infographics Cover
LION’S SHARE
How crude oil production varies by region Regional shares of crude oil production (Includes crude oil, NGL, feedstocks, additives and other hydrocarbons) %
Middle East
OECD
20
30
40
50
60
70
80
90
100
1973 2014
23.9 24.4 15.7 16.2
Africa
10.1 9.4
China
10
36.7 31.6
Non-OECD Europe and Eurasia
Asia (excludes China)
0
3.2 3.9 1.9
5
Economic fallout of low oil prices Economic growth in the Gulf states is set to slow this year because of the “large and persistent” drop in oil prices, the IMF said in October.
3.25% Projected GDP growth in the six Gulf states in 2015
12 20
bbeenncchhm m iiddddllee eeaasst t | J F maarrkk m ue l yb r2 u0 a1 5r y 2 0 1 6
13% of GDP Gulf states’ forecast fiscal deficits in 2015
19.4%
$360bn
Saudi Arabia’s forecast deficit in 2016
2.75%
Projected growth in 2016
Regional oil exporters’ lost export revenues in the year to October 2015
$1tn+ Cumulative fiscal deficit over the next five years without major reforms
February 2016 | benchmark middle east
Infographics Work Cover Feature
FUEL COST AND SUBSIDIES
The UAE, Oman and Bahrain have moved to cut expensive government subsidies on fuel, in a bid to cut their budget deficits
5% of GDP
Cost of low energy prices in the GCC in terms of foregone revenue
$12.6bn Fuel subsidy burden for the UAE in 2014
The region had benefited from some of the cheapest energy prices in the world: Prices for energy products (USD, January - August 2015) Prices shown before fuel subsidy cuts in some Arabian Gulf countries. Gasoline/diesel prices are per litre. Natural gas prices are per MMBtu. Electricity prices are per KWh. 0
Natural gas
1.54 2.8
Diesel
0.32 0.64
Gasoline
0.3 0.53
Electricity
0.05 0.1
1
2
3
4
5
GCC Average USA (pre-tax)
Saudi Aramco: The world’s energy giant
Saudi Aramco is likely to be valued at well over $1tn
Saudi Arabia is considering a stock market listing for its national oil group, it emerged in January
It produces all of Saudi’s 10.25m barrels a day
SOURCES: Bloomberg | BBC | Opec | US Energy Information Administration | The World Factbook/CIA | International Monetary Fund
benchmark middle east | February 2016
Febru J ualryy 22001156 | bbeennc chhmma a r kr km m i diddl d e leea es ta s t
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Work Top 10
to p 1 0 tr e nds in t h e
OIL INDUSTRY Doom and gloom – or another oil boom? The former very much characterises the economic sentiment in the Arabian Gulf during the first quarter of 2016: In January, the oil price sank below $28 for the first time since 2003, amid a wider climate of layoffs and cost-cutting. Things certainly look bleak for the oil industry – but some are more optimistic than others about what the year will bring. Here are Benchmark’s top trends to watch in 2016. BY Ben Flanagan
1
Oil prices to remain relatively low … Brent crude oil prices dipped below $28 on January 18, in what some said was a reaction to the ending of sanctions on Iran – and many analysts believe that prices will remain low for some time, at least compared to the $100-plus levels seen a few years ago. The U.S. Energy Information Administration expects Brent to average $40 per barrel in 2016 and $50 in 2017. Trevor McFarlane, chief analyst at the Dubai-based Emerging Markets Intelligence and Research, said he expects oil prices to recover to above $50 later this year. “The market consensus is that you’ll start to see the oil price rebound in the second half,” he said. “But still… not until the end of the decade are we going to see oil prices around $100 a barrel again.”
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Top 10 Work
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2
The cure for low oil prices: Low oil prices The end of the era of low oil prices can be summarised by one rather counterintuitive maxim: “The cure for low prices is low prices,” said Mills. “Certainly oil prices can recover… but I expect an extended period of weak prices, even if above today’s levels,” he added. McFarlane agreed that the sooner the oil price hits rock bottom, the sooner it will start to recover. “We tend to be bullish on the way up and bearish on the way down – that’s the way markets work,” he said.
… Yet how low, we don’t know Some however have doomsday-like predictions for the oil price. Morgan Stanley analysts have said “oil in the $20s is possible” if China devalues its currency further, while economists at the Royal Bank of Scotland says that oil could fall to $16. But Standard Chartered has perhaps the gloomiest prediction: That oil prices could hit just $10 a barrel. Yet the truth is, no one really knows where the price will go. “There’s a lot of uncertainty around where the oil price is going to be,” said McFarlane. “Sometimes we need to say that we just don’t know.”
3 Cost-cutting, but not closures McFarlane said he expects cost-cutting in the Gulf energy industry to continue this year. “You’re seeing layoffs. You’re seeing price pressure being applied from the national oil companies to the suppliers. There will be a continuation of this trend,” he said. “2016 is going to be a year for a lot in the oil and gas industry to get through, rather than to thrive.” But costcutting moves won’t go as far as actual closures, said Robin Mills, head of consulting at Manaar Energy, and author of ‘The Myth of the Oil Crisis’. “I expect cost cuts – around 20 to 25 percent – in the Gulf’s oil industry, particularly affecting contractors,” Mills said. “But the Gulf oil industry is low-cost and will be the most robust in the world. Major strategic projects will still go ahead, and fields will not be shut down.”
benchmark middle east | February 2016
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Work Top 10
5
A global oil glut, despite low prices… Despite the massive drop in oil prices over the last 18 months, the world’s producers are still pumping – sending prices even lower. The International Energy Agency warned in its first monthly report of the year that “the oil market could drown in oversupply” unless something changes. The markets could be left with a surplus of 1.5 million barrels a day in the first half of this year, it added.
6
… But US output to decline The Organization of the Petroleum Exporting Countries said in January that it expects production outside the Opec area to drop by 660,000 barrels a day. The United States is expected to see the biggest decline in production, with the country’s output forecast to fall by 380,000 barrels a day. McFarlane said that while many had underestimated the shale revolution, production from the US has indeed slowed. “The expectation is that that will continue throughout the year,” he said.
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7
Iran production in focus Iran currently pumps about 2.9 million barrels per day, but there is some debate over the extent to which it could boost oil production as sanctions are lifted. Iranian officials have said the country is preparing to increase production by 500,000 barrels per day, and could push this to one million. But some oil analysts have cast doubt over Iran’s ability to do this, given that many of its oil fields are aging and in need of investment. The IEA says Iran could add around 300,000 barrels a day of crude by the end of the first quarter. Whatever the output from Iran, Mills said he expects an impact on the market. “Oil prices have fallen unexpectedly low, and extra Iranian oil will keep them low this year. But I expect [an oil price of ] around $40-50 per barrel by the end of the year,” Mills told Benchmark. February 2016 | benchmark middle east
Top 10 Work
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All eyes on China Despite the reaction to the lifting of sanctions on Iran, it is what happens in China that has the far bigger impact on the market, some commentators say. And economic jitters in the world’s most populous country have been sending shockwaves through the industry, says McFarlane. “China remains a kind of panic button for the global economy. We’ve seen a lot of stock market volatility. And when this volatility in China happens… the sentiment very quickly spills into the commodity market,” he said.
9
Less appetite for exploration Some Gulf states, faced with huge budget deficits, are likely to divert funds earmarked for oil exploration elsewhere, McFarlane said. “They need this capital to flow to other areas,” he said. Daniel Ang, an investment analyst at Phillip Futures in Singapore, said that he predicts capital expenditure to be lower, but said that some exploration may continue. “I would think that the main theme [this year] would be lower capital expenditure on development of oil rigs. It is possible that exploration could still be ongoing, however, the checks on profitability of the oil wells would very stringent,” Mr Ang told Benchmark.
10
And finally – some good news Despite the short-term doom and gloom, this period of low oil prices will ultimately be a good thing for the Gulf economies, said McFarlane. The cut in petrodollar income has expedited positive economic reforms such as ending fuel subsidies in markets like the UAE, for example. “In the grand scale of things this low oil price could be a really good thing, because it forces the governments to reform,” said McFarlane. “Again, the UAE government has led the way, I feel, in terms of setting a positive example in terms of cutting subsidies. They need further economic reforms.”
benchmark middle east | February 2016
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Work Recruitment
How to work in the oil industry Black gold’s dramatic decline is pushing many global oil and gas companies into the red — and recruitment in the industry has been hit hard. But what the oil price crash means for jobseekers in the Arabian Gulf’s multibillion-dollar energy business is not such a black-and-white issue Page 20 >
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Recruitment
benchmark middle east | February 2016
Work
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Work Recruitment
L
ayoffs, salary declines and recruitment freezes have been common across many global energy companies since oil prices went into freefall about 18 months ago. The oilfield services giant Schlumberger, for example, cut around 10,000 jobs in the last three months of 2015, when it suffered a $1 billion quarterly loss, adding to the 20,000 redundancies the company announced earlier in 2015. Across the global industry, salaries were down by an average of 1.4 percent in the year to November, according to the annual salary survey produced by recruitment firm Hays Oil & Gas. Almost a third of the respondents to the Hays survey said they had been laid off or made redundant, while 93 per cent of employers said they had made some level of headcount reductions. Gulf recruitment ‘plunge’ In the UAE, there was a 9 percent decline in the expat workforce in the year to November as oil and gas companies were forced to reduce costs, the Hays survey found. A separate survey by jobs website Monster.com found that employer activity in the Gulf oil and gas sector “plunged” over the last year, the only sector to witness such a trend. Exploration is one area that has been most affected by the crash in oil prices, with recruitment in the field having “fallen off a cliff”, said Gary Ward, operations director at Hays Oil & Gas in the Middle East, Europe and Africa. “It’s pointless exploring when everyone is complaining that everyone should be cutting back. And the money is not there to go drilling lots and lots of holes,” he said. Some big global energy companies are suffering elsewhere in the world, and that has had a knock-on effect on recruitment in this region, Mr Ward added. Examples of big global employers aborting projects here include Royal Dutch Shell, which said in January it is pulling out of an $11 billion gas project in Abu Dhabi. So far, so bleak. But the good news is that some recruitment is still going on in the Gulf’s energy sector, with parts of the industry faring better than others, said Mr Ward. “If you splice the industry up into its component parts, some have been decimated. But others are continuing, and there is recruitment continuing to go on,” he said. 20
benchmark middle east | February 2016
Jobs in the UAE oil and gas market 9%
Fewer expat workers in the year to November
38% Of employees said they would consider a cut in salary to retain their job 55% Of employers said the main issue facing the industry is economic instability 72% Feel confident about the oil and gas industry in 2016 4% Drop in the number of employees in the UAE receiving benefits (bonuses, health plan etc) SOURCE Hays Oil & Gas Global Salary Guide
February 2016 | benchmark middle east
Recruitment
Work
there is recruitment going on.” And Gulf countries are still pressing ahead in other areas of the broader energy industry, such as renewables and nuclear, said Mr Ward. “Renewable energy was the long-term plan in the region anyway. Investment in nuclear power stations, wind farms, solar energy, etcetera — those projects still seem to be going ahead,” he said.
‘Recruitment drive’ in UAE While there has been a decline in employment across the Middle East oil and gas industry as a whole – both in terms of redundancies and new job opportunities – not all areas have been hit. There is “still a recruitment drive” going on in the UAE, said Mr Ward. Hays Oil & Gas even announced in January that it has opened a new office in Abu Dhabi, offering recruitment services for permanent and temporary oil and gas contracts. “The UAE actually hasn’t felt the impact too much,” said Mr Ward. “Exploration… has suffered. However, like a lot benchmark middle east | February 2016
of the GCC countries, they are investing still in infrastructure projects. And then you’ve got the operators’ production holding reasonably steady.” Mr Ward pointed to other regional markets such as Kuwait, which is about to launch a massive new refinery, and Saudi Arabia, where he says the national oil company is both still pumping oil, and hiring. “You’ve got major projects for the operating companies – as in [Saudi] Aramco – still going ahead. Some projects that were due to come online, or due to be awarded, they’ve been mothballed, and there’s been a couple of projects cancelled. However…
Salary cuts? Industry salaries offered by local companies are not seeing increases, but are still “holding steady”, Mr Ward said. But he added that the picture is different for some of the large global operating companies active in the region, which have made changes to their salary scales due to the oil crash. “The impact of what is going on outside the GCC is impacting on the global operators, more than the national operators within the GCC,” said Mr Ward. “The national [operators] are very bullish – obviously; Opec is very bullish about continuing to pump at record levels. It may come to an end, we don’t know. It’s almost changing weekly at the moment, what the market is doing.” Factors influencing the wider market include the US shale output, the outlook for large but troubled economies such as China, and the future oil production from Iran in the post-sanctions era. Mr Ward sees a lot of activity in Iran, but says it is unlikely to require the “wholesale recruitment” of expatriate workers. “It is the industry’s understanding that at the moment, with labour law the way it is in Iran, it would be difficult for any foreign companies that might want to go in there to actually walk in with thousands of their own people. I think they would be forced to go down the line of local [recruitment] first.” Returning to the topic of the Gulf region, Mr Ward said it remains to be seen if and when the level of recruitment will return to that seen when oil was above $100 a barrel. Making such a predication would require “a very big crystal ball,” he said. For now, there is a least some recruitment activity taking place. But, as Mr Ward points out, anything could change – and change quickly – given the volatility of the energy markets. “A lot of companies are holding steady. The operating companies are still pushing forward with some of their new projects,” he said. “It’s definitely not doom and gloom here within the Middle East. Now, next week, that could be completely different…” February 2016 | benchmark middle east
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Work Black Gold Blues
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Black Gold Blues
Work
What does low oil price mean for me?
O
by Ben Flanagan
il prices go up, and they go down. But how worried should we be, given the particularly steep downward curve of the last 18 months?
The oil price crash has brought with it an obvious decline in recruitment in the oil and gas sector — but to what extent are those outside the industry really feeling the strain? If you work in another field — anything from accounting to zoology — will you be hit? And what are the broader economic repercussions that will be felt by residents of the Arabian Gulf ? Benchmark drilled deep to answer your questions. Oil prices are heading to $10! We’re all doomed! Hang on a minute. That is one prediction of many — and certainly one of the more pessimistic forecasts. Few believe prices would stay at such a level for long, even if they were to fall so low. Many analysts, including the respected oil industry expert Daniel Yergin, vice chairman of IHS, actually expect the oil price to rebound sometime in the second half of 2016. Yet benchmark middle east | February 2016
the impact has been significant on the Gulf economies: The IMF says the decline in oil prices has led to “a substantial deterioration in fiscal balances”, with deficits across the six members states seen as averaging almost 13 percent in 2015. If the current policies don’t change, the states will remain in deficit of 6.5 percent of GDP in 2020, the IMF forecasts. I’ve never been on an oil rig. In fact, I don’t know the difference between a bpd and a borehole. Will the low oil price impact me? If you live in the Gulf, it is like that you’re already seeing changes. The cuts in government subsidies onfuel, for example, are seen as a direct response to the oil price crash. The introduction of value-added taxes (VAT) is looming, while the prospect of lower government spending is also likely to ripple through the economy as a whole, according to experts. February 2016 | benchmark middle east
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Work Black Gold Blues
Which experts? Take Robin Mills, head of consulting at Manaar Energy, non-resident fellow for energy at The Brookings Institution, and author of ‘The Myth of the Oil Crisis’. He says that the impact of low oil prices on an individual will depend on the industry in which they work — and that it could actually be a good time to launch a business outside the energy sector. “Certainly we will see lower government spending which ripples through the whole economy, affects real estate prices, etcetera,” he told Benchmark. “Subsidies will be cut and some indirect taxes increased. But it can be a good time to develop businesses that don't depend on oil or government spending.” What do other commentators say? Trevor McFarlane, chief analyst at the Dubai-based Emerging Markets Intelligence and Research, says that we live in “government-led economies” — and so lower oil prices will doubtless have an impact on most of us. “If the governments have less revenues they tender fewer pro24
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Black Gold Blues
Work
What about income tax? A country such as the UAE is extremely unlikely to introduce income tax on individuals, even in the fallout from low oil prices, experts say. “I should never say never,” said Jean-Francois Seznec, a non-resident senior fellow at the Atlantic Council, and an expert on Gulf oil. “But they will never introduce an income tax on people, or on families. But they will put income tax on large corporations, especially the manufacturing ones who have benefited from all the state benefits and so on.”
jects, and that impacts all of the companies that we work for,” he said. When will VAT come in? The six Gulf states have been coordinating over the imposition of VAT, and are each preparing draft laws that will likely see the tax, of up to 5 percent of the value of goods, imposed from 2018. Christine Lagarde, head of the IMF, in November publically urged the Gulf states to introduce VAT, along with other spending reforms. The introduction of VAT, if designed well, could raise between 1.5 and 2 percent of GDP in revenue, according to the IMF. What impact will that have on me? If the rate is 5 percent or less, the additional financial burden is likely to be limited — more of a marginal inflationary hike rather than something that really hits your wallet. Crucially, the Gulf states plan to exempt almost 100 food itemsfrom VAT, as well as entire sectors such as healthcare and education — limiting the impact of the tax, especially on lowerincome families. benchmark middle east | February 2016
More tense times coming. And people therefore will be buying less, I think that’s human nature… People know that the good days are somewhat over
So — bottom line — will I be made redundant? It looks unlikely, if broad employment trends are anything to go by. Mr Seznec said that, in the broader economy, he does not expect mass redundancies as a result of the low oil prices and expected fiscal deficits. Anda recent report by jobs website Monster.com found that there was a sharp increase in growth of job postings last year across the Gulf, with oil and gas the only sector where employer hiring activity had fallen. Employer hiring activity in the UAE grew at an average rate of about 16 percent from January to September last year, Monster said. “Largely led by a customer and service-oriented industry, a steady rise in demand was registered for professionals in software, hardware and telecom, finance and accounts, as well as sales and business development,” Monster said. But will I have less money in my pocket than before? Mr Seznec said that middle class residents could see a dip in the quality of life, especially in the wake of ongoing subsidy cuts. “Their very high standard of living, to which the middle class is used to, is going to change. [Government have] cut the subsidies, and all of the sudden they have to pay for gasoline, water and electricity and things of this nature,” he said. “More tense times coming. And people therefore will be buying less, I think that’s human nature… People know that the good days are somewhat over.” February 2016 | benchmark middle east
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Work Black Gold Blues
Can oil price ever recover? S
by BEN FLANAGAN
peculation is rife as to where the oil price will go, but we have the definitive answer: It’ll be somewhere between $5 and $200... That is, at least, the extremely broad range offered by a deeply divided indus-
try, with forecasts depending very much on whom you speak to, and when. Goldman Sachs in 2008 famously — or rather, with the benefit of hindsight, infamously — forecast an impending era of $200-a-barrel oil. In September it revised this, somewhat drastically, saying the price could fall to just $20 this year, in the worst-case scenario. Others have even gloomier predictions, with Standard Chartered saying that oil could bottom out at $10. At the World Economic Forum in January, there were even mutterings that the price could reach a low of $5. Others point to a less alarminglevel of $40 by year-end. Oil still at $40…in 2035? While there is little consensus in the industry, most agree on at least one thing: Oil is unlikely to recover to $100, yet 26
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alone $200, anytime soon. That’s certainly the view of academic Roberto F. Aguilera, research fellow at Curtin University in Perth, Australia, and co-author of ‘The Price of Oil’.
In the book, published last November, the academic forecaststhat the oil price will stand at just $40 by 2035 — something he attributes squarely to the socalled shale revolution in the US. Weak demand due to global economic jitters, a glut in supply and — mainly — the impact of shale are behind the recent 18-month nosedive in prices, says Mr Aguilera. “We believe that the period of high prices we saw over the past decade has come to an end. Because, in our view, the shale revolution in the US is really just a humble beginning,” he told Benchmark. “Its continued expansion, combined with the international spread of the revolution, will assure much more ample oil supplies, and will deliver prices far February 2016 | benchmark middle east
Black Gold Blues
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below the $100 level that we have experienced recently.” Although his book presented different scenarios, with oil at different price points 20 years into the future, Mr Aguilera said the $40 level is looking “increasingly likely” given the trends seen over the last couple of months. More bullish outlook Daniel Ang, investment analyst at Phillip Futures in Singapore, sees oil prices making a much more rapid recovery – but not to the $100 levels seen previously. “I expect prices to peak at about $80 at most in the longer run. As prices stay low for a longer period of time, it is likely that expensive forms of production would continue to feel the pain and thus, cut back on production. It should only be a 28
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matter of time,” he told Benchmark. Mr Ang says he has a “bullish” outlook for this year, with prices set to average $40 in 2016 despite the weak prices seen during the first half. And with sanctions on Iran having been lifted, the market can start to account for that. “The return of Iranian oil has kept the market on a more bearish sentiment, and with this out of the way, prices would account for this and move down in the short term. However, in the longer term, I do not expect to see [many] more major milestones that could bring prices down further,” he said. History lessons We know that what goes up, must come down. But what lessons can we learn from history as to where the oil price
may start rising again? Mr Aguilera said that political events such as the Iranian revolution, and conflicts such as the Iraqi invasion of Kuwait,have been behind historic spikes in oil prices. While he does not rule out geopolitical forces prompting similar increases as those seen in, say, the 1970s, Mr Aguilera says things are a different this time around. And that is due to the widespread availability of shale resources – not just in the US, but in numerous other countries globally. “The difference now is that you have this abundant supply,” Mr Aguilera said. “New technologies are here to stay. And because of that we won’t see shortages for the next few decades.” Certain parts of the Middle East are February 2016 | benchmark middle east
Black Gold Blues
Work
We know that what goes up, must come down. But what lessons can we learn from history as to where the oil price may start rising again?
hotbeds of instability – but the more widespread geographic availability of shale means that local tensions are likely to have a lesser impact, the academic said. “This large supply increase is less concentrated than before. It has diversified supply because shale resources are widely distributed. So the effect there is that the world is less prone to supply disruptions,” said Mr Aguilera. Saudi tactics But for one expert on Gulf oil, history is indeed repeating itself. Jean-Francois Seznec, a non-resident senior fellow at the Atlantic Council, said that Saudi Arabia is replaying tactics it has used in the past in an attempt to drive up prices. In previous oil crises — such as that seen benchmark middle east | February 2016
in 1998-1999 — the world’s biggest crude exporter continued pumping despite low prices, with non-Opec members such as Norway and Mexico eventually agreeing to cut production. “I think this is the policy that the Saudis are playing now, trying to make things so tough on people that they will actually agree to cut. And once they agree to cut, then the price will recover. It maybe won’t go to $120, but the Saudis will make sure it stays between maybe $60 and $80. The Saudis would like $80,” said Mr Seznec. “The production doesn’t have to be cut much, and the Saudis have indicated that they… would work with nonOpec members,” he added. “I think if the Russians would agree to cut production a little bit, say half a million, then the
Saudis would match, and then the price would go back to $50, overnight.” But again, the difference today compared with previous oil price crashes is the ability of the US operators to increase shale production in a matter of months, said Mr Seznec. “The big difference today is… the ability of the shale oil folks to get back in the market very quickly, which is new. And the second one is what is going to happen [with] Iran, how much oil Iran is going to put on the market, and how the markets perceive that,” he said. Mr Seznec sees oil recovering to $50 or $60 within a few months. But can it return to $100 in the short or medium term? “Unless there was actually war between Iran and Saudi Arabia, no,” he said. “And I really don’t see that happening.” February 2016 | benchmark middle east
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Work Black Gold Blues
How is UAE moving away from oil? 30
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February 2016 | benchmark middle east
Black Gold Blues
P
Work
by ben flanagan
etrodollars’
and
‘diversification’ are probably the
two most overused words in the business press when it comes to the economies of the Arabian Gulf. An anticipated shortage of the former brings an urgent need for the latter, as you have doubtless read numerous times over the past decade. But in the last 18 months, the clichés have come true. A sudden shortage of petrodollars – albeit due to the crash in oil prices, rather than a depletion of reserves – has hit the Gulf economies hard. And Dday for economic diversification is here. So have the Gulf states’ long-trumpeted efforts to ween themselves off oil revenues proved successful? Partly, say economists – although there is still some way to go before they kick their habit of overreliance on petrodollars for good. Mixed picture Levels of diversification vary across the region, economists say. Dubai, for example, never had much of an oil economy to begin with, given it holds only a tiny fraction of the UAE’s vast oil reserves. The economies of Abu Dhabi and Riyadh are much more reliant on ‘black gold’. Robin Mills, head of consulting at Manaar Energy, and author of ‘The Myth of the Oil Crisis’, pointed to the efforts made by the UAE to ween itself off oil cash – but said it and other regional states have some way to go in their efforts. “[The] UAE is doing reasonably well by cutting the government budget, removing subsidies and diversifying the economy and sources of government revenue. But there is still a lot more to be done,” he said. “Oman and Qatar have made some progress, Saudi Arabia has ambitious economic reform plans, but they all have a long way to go.” Dubai’s decoupling dilemma Trevor McFarlane, chief analyst at the Dubai-based Emerging Markets Intellibenchmark middle east | February 2016
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gence and Research, said Dubai stands out in the region when it comes to economic diversification. “The real success story that we can hold up is Dubai. Abu Dhabi has made some progress, Saudi has made some investments, Qatar has made some investments as well. But really it’s still Dubai,” he said. That said, even Dubai has not fully “decoupled”, with its economy still being partly correlated to the trends in the surrounding oil markets, Mr McFarlane added. “You can’t underestimate the impact of lower oil prices on the Gulf. No matter what we say about diversification, it is still fundamentally linked. Even in a place like Dubai, which has shown tremendous vision in developing its economy and diversifying its economy, it is very difficult for us to decouple ourselves from the oil economies around,” he said. “If you’re in Dubai, you’re still dependent on Saudi businesses. You’re still dependent on tourists. You’re still dependent on investment flows coming from these markets. So if they all come down it will also have an impact, even in a non-oil economy like Dubai.” Saudi diversification drive Jean-Francois Seznec, a non-resident senior fellow at the Atlantic Council, knows a thing or two about economic diversification in the Gulf. He has been working on the issue for decades, including stints in Saudi Arabia and Bahrain. Mr Seznecpointed to the prominence of Saudi Arabia’s Sabic –one of the world’s largest chemical companies – as proof of some of the successes of Riyadh’s diversification drive. “The great advantage of the low oil prices is that the countries are realising that they cannot rely on being dependent on one commodity. They have to go into downstream, value-added products,” he said. “The Saudis are way ahead of the others on that, because they have a very large chemical industry – one of the largest in
The great advantage of the low oil prices is that the countries are realising that they cannot rely on being dependent on one commodity. They have to go into downstream, value-added products
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Black Gold Blues
Work
the world. They are very big in fertilisers, quite big in metals, they have a big aluminium plant… They have moved forward a great deal.” But Mr Seznec said that the diversification of the economy has not been working fast enough, having been partly overshadowed by the huge rise in oil prices up to 2014. “[Diversification] has been working, but it hasn’t been working fast enough. In other words, the huge rise in oil prices in 2000 to 2010 has hidden, has obfuscated, the non-oil growth,” he said. “And now, all of a sudden, the government realise that [they cannot] be so dependent on oil. They’re going to push it much harder, it seems to me. And they’re going to push education more so that people can be working… they don’t have to rely on foreigners quite as much,” said Mr Seznec. Other likely reforms in the future include more tax on businesses, he added. “Sooner or later the cooperations in Saudi Arabia will have an income tax. Because that’s how the state can finance itself,” said Mr Seznec. “The low price of oil is going to force the countries to modernise their economies.” Sovereign wealth The Gulf states did, of course, make huge global investments outside the energy sector during the oil boom. These ranged from high-profile pieces of prime London real estate to the vast and varied holdings of the region’s sovereign wealth funds. This means that the situation is much different to the oil crash of the mid-1980s, said Mr McFarlane. “These economies are different,” he said. “They’ve saved up incredible assets that they can draw upon. And they should be given credit for that. Look at Nigeria, for example, which hasn’t really done the same job. Look at Russia, which has gone from petrodollars to petro-pennies.” Mr McFarlane said that – despite the doom-and-gloom warnings from some –the era of low oil prices will actually be positive for Gulf economies in the long term. The crash “forces the governments to reform”, he said – pointing to moves such as the cutting of fuel subsidies in the UAE and other regional countries. “This low oil price in my view can be a really good thing in the long term for the region,” said Mr McFarlane. “Sometimes you need a burning platform. Sometimes you need everything around you to put pressure on you, to push you to a better place.” benchmark middle east | February 2016
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THE BOSS
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the FRACK Master WORK THE BOSS
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by Ben Flanagan
hen Chris Faulkner came to speak at an energy conference in Abu Dhabi, the US executive says he was – for some in the audience, at least – the “most hated guy in the room”. This is, perhaps,a surprising admission
from Mr Faulkner, the founder and chief executive of the Texas-based Breitling Energy Corporation. But it’s a touch less surprising when you hear the energy entrepreneur’s informal nickname, one he seems to revel in: the “Frack Master”.
Breitling may not be the biggest company within the troubled US shale sector, but its top exec is certainly one of the industry’s loudest and most unapologetic proponents, appearing regularly on popular US news channels and in other media. Many criticshave claimed that hydraulic fracturing has damaging environmental consequences, although the matter is still subject to heated debate. A landmark study by the U.S. Environmental Protection Agency (EPA) concluded that fracking causes no widespread harm to drinking water. But the findings of the preliminary report have since been called into question – by the EPA’s own science advisers. benchmark middle east | February 2016
But perhaps the key reason why Mr Faulkner faced a sceptical crowd at the Gulf Intelligence UAE Energy Forum, held in Abu Dhabi in January, was the global dynamics between the established Middle East oil producers – notably, Saudi Arabia – and theirrelatively new rivals in the US shale industry. Despite the era of low oil prices, Opec producers are still pumping, and the world has a glut of cheap oil – something that has hit the US shale operators hard, given the relatively high expense of fracking. Mr Faulkner, unsurprisingly, sees light at the end of the tunnel – as he told Benchmark in this interview from his Texas base. His firm has interests in 607 wells in
the US, and operates a much smaller number itself – and it is, surprisingly perhaps, looking for expansion in the Middle East sometime this year. Only time will tell what the audience reaction will be like on the executive’s next visit. Q&A with Chris Faulkner, founder and chief executive of Breitling Energy Corporation Brent prices recently fell below $28, which was attributed by some to the ending of Iran sanctions. What does that mean for shale: Does fracking have a future? I don’t think that the Iran sanctions moved February 2016 | benchmark middle east
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WORK THE BOSS
The Middle East can admit what they want, but those countries are all bleeding cash, because their fiscal budgets are far in excess of where the price of oil is at. And more importantly, the price of oil minus the cost of lifting it out of the ground
the needle very much. I think the underlying fundamentals of where we are – with supply, demand, China, even currency – has caused the number to get to where it is today. The reality is that the price of oil shouldn’t be this cheap. With that said, it’s very difficult to put together a capex budget, and a request to go out right now and drill and frack a new well. Is fracking going on? Yes, we’re refracking older wells right now, but that’s going to cause more supply to come into the market, so you have to be careful there. If you already have a well producing, and you’ve paid for the well, bringing new oil out of the ground, we can make money right now. That’s why you don’t see wells being shut in…. We can still bring incremental oil out of the ground, for 10 to 15 bucks in many of these places, but you can’t drill a new well for that. Predictions of where the oil price is headed vary wildly, from $10 (Standard Chartered) to $40 (U.S. Energy Information Administration). What’s your view on the price going forward to the end of the year? My numbers are that oil goes to $25, bottoms and stabilises and bounces back into the $40s in July, as more supply comes off the market by June. I think Iran has the ability to produce 500,000 or 600,000 barrels. I don’t believe their infrastructure is in good enough shape to produce more than that. 36
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You spoke in Abu Dhabi recently. What are the key trends that you see in the Middle East industry right now? The Middle East can admit what they want, but those countries are all bleeding cash, because their fiscal budgets are far in excess of where the price of oil is at. And more importantly, the price of oil minus the cost of lifting it out of the ground. Yes, they can produce oil very cheaply. But they must sell at a high price. So I think things in the Middle East are not great. What attitudes towards shale did you notice in your visit to the Middle East? Did you get a round of applause after your speech, or were people a little more hesitant? By many people’s accounts, I was the most hated guy in the room, because I was the only American there talking about shale, and I was the keynote. So I set the tone of how America was doing. And I think that my speech and my comments they wish were more negative, that we were in a much more world of hurt. I gave them the truth, even though they wanted to hear about a bloodbath. So, have they succeeded in their mission to cripple the United States [shale industry]? No. If they continue to push the price lower, to their own detriment, will it begin to impact the United States further? Probably so. But if you keep in mind, our production numbers have not come down by any sort of massive amount. There isn’t a bloodbath, there February 2016 | benchmark middle east
THE BOSS
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are not massive bankruptcies. Companies are restructuring, companies are restructuring their debt, and we’re retooling our strategy in the United States. So at some point, somebody is going to have to blink. I think they’re still a bit perplexed as to why we’re not down and out… Somebody as a joke in the room asked me, ‘how low does the price have to go to kill the United States – how do we kill you off?’. And that is obviously strong language, and they were joking. But I think the reality is that they want to know what is it going to take to kill the United States production. And what is your answer to that? I think you see fracking come to a halt at $25, and I think you startseeing people shut in fracked wells at $20 and below. And do you think things will go that way? I think we’ll test $25 and find a floor, and begin to bounce up as production comes offline... We don’t have to make a bullish case to $60 or $70. All we need is to get back to the $40s and to stabilise the price, and we can start getting some breathing room here. Do you envisage ever branching outside of the United States? We’ve looked at assets just recently in Iran, now that the sanctions have lifted. We’ve looked at partnerships in the UAE. International might make sense more at this price of oil. We’ve always said that the United States is our core base, but if you can’t operate and drill in the United States, because the price of oil is too cheap, and it works elsewhere, we’d definitely look at joint-venture opportunities outside of the United States.
We’ve always said that the United States is our core base, but if you can’t operate and drill in the United States, because the price of oil is too cheap, and it works elsewhere, we’d definitely look at joint-venture opportunities outside of the United States ALI MATAR Chris Faulkner Founder and Chief Executive, Breitling Energy Corporation
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THE BOSS
What opportunities do you see in Iran and the UAE? What we’ve publicallydisclosed is that we’re looking at Iranian concessions that are being offered to foreign companies, after the post-sanction environment. We’ve talked now with four different entities in doing joint ventures in the UAE, near Abu Dhabi. You have this ‘Frack Master’ nickname that you seem to embrace. But do you see your role as primarily being as a man of industry, politics or PR? I think it’s a combination of all those three. [If ] you’re trying to educate Washington DC, as to what is happening on the ground, that sort of informabenchmark middle east | February 2016
tion is vital to them making decisions on policy. [Or] whether you are educating the public about the safety of fracking, and why we are not polluting water, or causing earthquakes, or whatever the issue de jour that environmentalists drum up. It’s giving counterbalance, and counterargument to those assertions. Or as a man of industry – we’re supporting a heck of a lot of jobs, and a heck of a lot of oil production, and it’s been a huge success story for America. But there are concerns about fracking. Has there really been enough research done to justify what you are saying in terms of safety?
WORK
I do firmly believe that what we are doing is safe. I live on top of the Barnett Shale, I drink water every single day, and I have no concern that the procedure and the process if followed is completely 100 percent safe. I think drilling offshore is 100 percent safe, but if you have humans involved in a process and they make mistakes, mistakes happen. You have mistakes in mining for coal, you have mistakes in petrochemical, you have mistakes in solar, in wind – and a number of these things all have consequences. This text, based on a phone interview with Mr Faulkner, has been edited for brevity. February 2016 | benchmark middle east
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Work Events Planner Nowhere, perhaps, is better placed than the UAE – both geographically and politically – to host this month’s World Government Summit. The summit, set to be held in Dubai, will bring together more than 150 governments and international organisations, and so “gathering the world under one umbrella”. Everything from the economy, environment and education to the future of technology and healthcare will be on the agenda. It is just one event that shows how the UAE is a valuable place for people to converge, with great wider benefits to society. Here is Benchmark’s guide to the top upcoming business events.
1. Ab1. World Government Summit When | February 8-10 Where | Dhabi The World Government Summit in Dubai has been rebranded for the 2016 edition, and transformed from a forum into an organisation that will launch initiatives and issue reports throughout the year. The summit aims to “answer tomorrow’s questions by preparing for the future and proposing solutions to challenges” faced by governments globally. It will host 50 speakers including: Jim Yong Kim, President of World Bank; Jan Eliasson, Deputy Secretary-General of the United Nations; and Nabil Elaraby, Secretary-General of the Arab League. This year sees the launch of the World Government Summit Award, to honour the government minister who has best led a new and successful project. Price: Check website for registration details www.worldgovernmentsummit.org 40
benchmark middle east | February 2016
There’s nothing better than “simply messing about in boats”, as readers of ‘The Wind in the Willows”, by Kenneth Grahame, will know. The pleasure of being on the water – albeit with a luxury, rather than simple, slant – is what the Dubai International Boat Show is all about. Last year’s event showcased more than 430 of the finest super yachts and leisure craft from across the world, pulling in about 26,000 visitors. This year’s five-day event is set to include live presentations, an interactive zone for sailing tips, watersports events, and a showcase of luxury brands. Probably best not to mention that other marine-related maxim: that the two best days in a boat owner’s life are the day you buy the boat, and the day you sell it. www.boatshowdubai.com Price: Dh60 (one-day visitor ticket)
3. Transport Solutions Middle East When | March 14-16 Where | Dubai World Trade Centre More than one million trucks currently operate across the GCC region, with the number increasing by up to 9 percent each year, according to consultancy Strategy& (formerly known as Booz & Co). So that shows the size of the market targeted by Transport Solutions Middle East, which is geared towards those in the heavy duty road transportation sector. The three-day industry event is expected to attract fleet operators, logistics managers, transport companies and government authorities.
CREDIT: abudhabievents.ae
CREDIT: facebook
2. Dubai International Boat Show 2016 When | March 1-5 Where | Dubai International Marine Club Mina Seyahi
4. I nternational Exhibition for Security & National Resilience When | March 15-17 Where | A bu Dhabi National Exhibition Centre Like it or not, security is a big business worldwide. And the biennial International Exhibition for National Security and Resilience (ISNR), organised by the UAE Ministry of Interior and Reed Exhibitions, is dedicated to it. Organisers say this edition will be the biggest yet, with over 500 exhibiting companies, 18,000 local and regional visitors, and over 200 government buyers and delegation members. Topics on the agenda include intelligence and threats, border and transport security, counter-terrorism and crisis management. There are a total of five events taking place in one venue, including the cheery sounding Fire & Emergency Middle East and Occupational Safety and Health Middle East. Price: Check website for registration details www.isnrabudhabi.com February 2016 | benchmark middle east
When | March 7-12 Where | A l Ain Convention Centre Gems and jewellery mean big business in the UAE, with the market growing at an estimated 7 percent a year, according to TechSci Research. And it’s certainly a business with widespread demand – as the long-running Al Ain Jewellery & Watches Exhibition shows. The Al Ain event is devoted to jewellery, precious stones, branded watches and well-known designers. The show, dubbed “AJWEX”, is open to the public; last year there was a ladies-only day. Price: Check website for registration details www.baderuae.com 6. Paperworld Middle East 2016 When | March 1-3 Where | D ubai World Trade Centre You may write off an exhibition devoted to paper and office supplies as, well, a little plain. But haven’t you ever secretly marvelled at the wonder of the work stationery cupboard — before helping yourself to a more-than-ample share of pens, highlighters and bulldog clips you’ll never use? One suspects that the stationery industry views office kleptomaniacs with delight; there is probably a report in existence about this, all beautifully bound with treasury tags aplenty. Anyway... If you’re in the stationery business in the Middle East, Paperworld is for you. Last year 6,300 interested buyers and decision makers turned up – so it’s big business. You could probably call it a staple of the economy. Price: Trade visitors only; registration compulsory www.paperworldme.com benchmark middle east | February 2016
7. Innovation Arabia 9 Annual Congress 2016 When | March 7-9 Where | Jumeirah Beach Hotel, Dubai
CREDIT: Shutterstock
CREDIT: innovationarabia.ae
CREDIT: www.baderuae.com
5. A l Ain Jewellery & Watches Exhibition 2016
9. Arabian International Home Show When | March 8-10 Where | T he Conrad Hotel, Dubai
This event reflects a belief that innovation is the path towards “a better tomorrow for the Arab World”, according to organisers. The highly scientific Innovation Arabia 9 Congress was preceded by a call for academic papers, and will feature academics and the professional community discussing solutions and challenges for the development of sustainable societies. Key speakers include: Osman Sultan, chief executive of the telecoms firm du; Irina Bokova, director-general of UNESCO; and Maria Neira, director of the Public Health and the Environment Department at the World Health Organisation.
For most people, buying a house marks the biggest outflow of hard cash of their lifetime. But the expenditure doesn’t stop there, as exhibitors at the Arabian International Home Show know only too well. This showcase of the latest home products and services is geared towards both serious homeowners and those in the profession – including architects, consultants and property developers. All well get to meet suppliers across the furniture, outdoor products, DIY, flooring, lighting, decoration, appliance and electronics sectors. Over 100 exhibitors and 3,000 visitors are expected.
Price: Dh2000 (full congress registration price) www.innovationarabia.ae
Price: Check website for registration details www.aihs.ae
8. AccessAbilities Expo 2016
10. Cabsat
When | February 9-11 Where | Dubai World Trade Centre
When | March 8-10 Where | D ubai World Trade Centre
Dubai’s ‘Disability Strategy 2020’ aims to provide equal rights and services to people with disabilities. The big move to make the city fully disability friendly will doubtless be on the agenda at the first AccessAbilities Expo, which is dedicated to the products, services and technologies related to disabilities and rehabilitation. It is geared towards various sectors – including aviation, tourism, public transport and education – and aims to motivate government authorities and privatesector players to change their perceptions of persons with disabilities. One billion people, or 15 percent of the world’s population, experience some form of disability, according to the World Bank.
The Arab world is unique in its TV viewing habits: The majority of TV viewers in the region watch free-to-air satellite broadcasts that span the entire region, from Morocco to Oman. And the Cabsat event, dedicated to electronic media and the communications industry, is geared around what makes this industry tick. The show has been going for an astonishing 22 years, and this year covers areas including satellite broadcast trends, digital broadcasting and in-flight connectivity. More than 15,000 visitors and 1000 exhibitors are expected. The world’s largest TV and film creators will be showcasing content for sale; there will also be an indoor drone and aerial ‘ActionCam’ feature area.
Price: Free with registration www.accessabilitiesexpo.com
Price: Trade Only, check website for details www.cabsat.com February 2016 | benchmark middle east
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Play Motoring
Motoring Play
FIRST BORNs of 2016 Auto buffs, It is Time to make merry as the current year brings with it many new offerings from some of the hottest automotive brands b y F a i s a l M o h a mm e d N a i m
L
ast year was all about major revamps in the auto lineups, but 2016 has delivered a sweeter surprise, with a lineup of brand new models from some of the swankiest labels in the industry including Ferrari, Maserati, and Bentley. Bently is has delivered its first SUV, said to be the most powerful ever made, while Maserati seems to have contacted the SUV fever as well, preparing to launch its first sport utility vehicle in the first quarter of 2016. Lamborghini, Lexus, Mercedes, and Mazda have some noteable new releases. Many are already in the showrooms, and a few will be appearing soon, and they’re all worth keeping an eye out for. Read on to find out why.
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Motoring Play
Me rc e de s B e nz
AMG GT S
Finally Mercedes Benz joins the GT (Grand Tourer) league with the AMG GT S. A successor to the German giant’s now defunct SLR and SLS series, the latest super-car has evolved into a super-sports grand tourer. Very much resembling its predecessor; the SLS AMG, the new GT bids adieu to the gullwing doors of the SLS and the butterfly SLR doors, but retains the long and exaggerated front. Not only meant to impart killer looks, this feature serves a purpose as it allows for the V8 a front-mid engine configuration in which the engine sits ahead of the driver, but still behind the front axle, resulting in a more balanced propulsion. Raw power is provided by the AMG developed dry sump 4-litre V-8 bi-turbo engine, churning out 503bhp at 6500rpm and 650Nm torque at just 1750rpm, hurling the beast from 0 – 100 in just 3 seconds. The GT S tops out at a breathtaking 311kph (electronically restricted). Pity the old 6.2-litre V8 is no more: killed by legislation. The Mercedes GT S is a halo sports car which is truly handsome in its own right, and seems to be aiming straight at the heart of Porsche.
benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Motoring
F e rrar i
488 Spider
Ferrari, the gerent of the sportscar genre, has come up with its latest roadster, the 488 Spider—a drop-top version of the 488 GTB, set to replace the 2012 Ferrari 458 Spider. Other than the removable top, all of the key design features of the 488 GTB remain intact on the latest Spider, including the wide-open front air intake, the air ducts in the hood, the scalloped rear air intakes, and the 458 Italia design cues. The 488 Spider is quite stiff with a space frame chassis made of 11 aluminum alloys and other noble metals such as magnesium, making it 23 per cent more rigid than the 458 Spider it replaces. Although the 488 Spider is 110 pounds heavier than the GTB due to its reinforced structure, Ferrari claims the drop-top is as quick as the coupe. The 488 GTB derived 3.9-litre, turbocharged V-8 mated to a 7-speed dual-clutch transmission delivers the same gut churning 661bhp and 760 Nm of torque, to produce insane acceleration times with a 0-to-100 sprint in mere 2.9 seconds and 0 to 200kph in 8.3 seconds. Top speed, though, has slightly dropped from 330 to 326kph. The retractable roof is carried over from the 458 Spider and remains a twopart, electronically folding top. The rear glass window can be adjusted to three positions to optimise windflow when the top is down. With the top up, the rear glass can be still be lowered to enjoy the gruntyengine soundtrack, but to get the most out of this beauty, it’s better to fly topless.
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benchmark middle east | February 2016
February 2016 | benchmark middle east
Motoring Play
Lamborg hini
HuracÁn LP 580-2
How could the prancing horse ever be spared, but by the charging bull? Aventadors and Huracans are Lamborghini’s answer to eternal archnemesis Ferrari’s GTBs and Spiders, and just a year after its entry-level supercar Huracan’s release, the iconic Italian sports-car brand is debuting the new Huracán LP580-2. The rear-wheel drive LP 580-2 is basically a toned down LP 6610-4, with lopped off front axle, and de-tuned, naturally-aspirated 5.2-litre V10 engine. But don’t take to heart the word ‘de-tuned’ in case of the LP 580-2. The mid-mounted engine delivers 572bhp at 8,000 rpm and 540Nm torque at just 6,500 rpm (pretty much equal to many of the full blown sports-cars). Linked to a 7-speed dual-clutch transmission, the 10-cylinder menacingly propels the coupe from 0 – 100kph in just 3.4 seconds, and to 200kph in 10.1 seconds. Add to that a raging top speed of 318kph, and its easy to see why the LP 580-2 is being lauded as the most engaging and driver-focused streetlegal Lamborghini ever built.
benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Motoring
M as e rati
Levante
Range Rover might soon have many sworn enemies — Rolls-Royce is thinking about an SUV, Aston Martin is also considering one, and there will no doubt be others who come along. But while others remain unconfirmed threats, another super premium SUV, the Maserati Levante, is muscling its way onto the market this year just behind the Bentley Bentayga (Its global debut is slated for the Geneva motor show this March). The car is heavily inspired by the 2011 Kubang concept and the 2014 Alfieri sports car concept, as confirmed by Giulio Pastore, GM, Maserati (Europe Division). Maserati Head and CTO, Harald Wester revealed that the Levante will be based on “100 percent Maserati parts,” borrowing nothing from other Fiat-Chrysler brands, including Jeep. The Levante will be sized and priced between the Ghibli and Quattroporteand, and will use the same V6 and V8 engines, transmissions (borrowing the 8-Speed ZF Automatic Transmission from the sixth generation Maserati Quattroporte), and all-wheel drive system. Initially, the four-wheel-drive SUV will feature Maserati’s 3.0L V6 engine, in two tunings: 350bhp and 425bhp, and by 2018, a 560 plus horsepower V8 will also be added. Named after the Via Emilia Levante in Bologna — where the Maserati brothers dreamt up their namesake company about a century ago; the Levant has the feel of a mid-size luxury crossover, making it strong a potent rival for the Porsche Cayenne and Macan.
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benchmark middle east | February 2016
February 2016 | benchmark middle east
Motoring Play
B e nt le y
Bentayga
We start with the most anticipated release of the season: the Bentley Bentayga. The long awaited unveiling of the much-hyped SUV has been the topic of discussion since 2012, and Bentley Chairman and CEO Wolfgang Durheimer had vowed the Bentayga to be “the fastest, most powerful, most luxurious, and most exclusive SUV ever made”. And though the claims are yet to be proven on the tarmac, on paper it looks like the promise has been kept. The first ever ultra-luxury SUV is armed with Bentley’s 6.0-litre W-12 behemoth, mustering 600bhp, and earth pounding 900Nm torque. The four-wheel drive, has eight-speed automatic transmission with eight driving modes: Sport, Bentley, Comfort, and Custom, plus four off-road modes. The air suspension system offers four ride heights and there is the electronic hill decent system too. The sybaritic giant is claimed to go 0 to 100 in a sports-car-like four seconds and hit a top speed of 300kph. That beats the Porsche Cayenne Turbo S and the Mercedes-Benz GLE 63 S AMG Coupe by roughly 15kph. Each Bentayga will be handmade in Crewe, England; the most skilled hands attending to the finest details most intricately.
benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Travel
Play Travel
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benchmark middle east | February 2016
February 2016 | benchmark middle east
Travel
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“A quality or feeling of mystery, excitement, and remoteness from everyday life.” by scott armstrong
hat is one dictionary definition for ‘romance’, one attempt to sum up in a few short words a concept which conceals a host of complex emotions and beguiling feelings. Ultimately perhaps we shouldn’t try to define ‘romance’ to a scientific extent, perhaps we should just accept the mystery and embrace that remoteness from ‘everyday life’. Or at least that how I feel as I try to write about Venice, searching for words made up of simple letters of the alphabet which somehow encapsulate concepts such as romance, enchantment and wonder. Because all of these words fit this true spectacle of a city, and yet they seem cheap and inelegant, my craft (if one could even call it such) unfit to paint any portrait of this place of many names, ‘La Dominante’, ‘Serenissima’, "Queen of the Adriatic", ‘City of Water’, ‘City of Masks’, ‘City of Bridges’, ‘The Floating City’, and ‘City of Canals’. And yet I’ll try and hope that Venice will forgive my poor attempt. From the moment the traveler arrives at this marvel created from more than 100 islands, interlaced with canals and bridges, it simply captivates. If arriving by train (recommended the Italian train system is excellent) one emerges from the station into the light blinking off the Grand Canal, its shimmering presence palpably alive as it snakes between the stunning centuries-old works of art, otherwise known as buildings. benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Travel
It’s almost impossible not to grin as one takes in the scene as visitors at one end queue for water buses while the smart motor launches which make up the private water taxi service endlessly moor, pick up (refusing to haggle on price) and then head out to their destinations. Weaving between this turbulence are the straw hats and striped shirts of the gondoliers. While all these ingredients should ensure chaos there is a frenetic order to it all, a dance on the Grand Canal in which all know their parts. Choosing the private water taxi should be the only real choice as you watch the sardines try to squeeze on to the water buses to save a few euros. Stepping aboard the motor launch once almost instantly feels (if not looks) like George Clooney. And gliding through the canals, aboard a glamourous time machine as you watch the 14th Century play out in the architecture of the city on your own (for 30 minutes) boat is, in that moment, the height of glamour. That sense of timeless style and sophistication goes into overdrive if you are staying at Venice’s Hotel Danieli. Your launch finally pulls up at the property’s private water entrance, here the trick is not to let your jaw hit the floor and act like you belong – and that’s a hell of a trick to pull off. 50
benchmark middle east | February 2016
February 2016 | benchmark middle east
Travel
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This is a city to totally lose yourself and wander aimlessly, admiring the hidden architecture, the arts and crafts This entrance leads into the heart of the Hotel Danieli, the Palazzo Dandolo built in the 14th Century by the wealthy Dandolos, a noble Venetian family, who were famed for their social gatherings. This sumptuous gothic building has survived the centuries, beginning life as a fully-fledged hotel in 1824 and for hundreds of years has been one of the finest hotels in Venice ever since. The main architectural feature is the four-storied courtyard with arches in Byzantine Gothic style which could be lifted from the pages of Shakespeare’s Merchant of Venice. Once open to the elements this has been transformed into as luxurious a lobby as you are likely to find. The foyer leads to the open stone staircases with balustrades leading up to the furnished rooms and suites, of which the Doge Suite is the height of glamour, with furnishings from the 18th century it is fit for a king, or a sheikh. benchmark middle east | February 2016
Throughout this property that timeless style has been retained so that one feels they are inside a Venetian drama playing out centuries before. In the rooms the bathrooms are Italian marble, the exquisite glass chandeliers are, as you would expect, curated on the nearby island of Murano and underfoot you have parquet flooring covered by intricatelywoven oriental rugs. Neatly hidden away though at the trappings of modern life with free wifi and remote-controlled lighting and curtains. Sitting atop the Danieli is perhaps its crowning glory — the Restaurant Terrazza Danieli. During the months of April to October its al fresco dining is one of the best spots, overlooking Venice’s stunning lagoon. Breakfast here is possibly the greatest way to start one’s day in this amazing city. Not only is the Danieli a beautiful location in its own right, but it also in a fantastic location being a short stroll over February 2016 | benchmark middle east
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Play Travel
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benchmark middle east | February 2016
February 2016 | benchmark middle east
Travel
one bridge — which itself is the viewing platform for the famous Bridge of Sighs — before you find yourself in the iconic St Mark’s Square with its stunning Basilica, the Doge’s Palace and the Museum of Venetian Art. The Danieli is also the perfect place to dive into the mass warren of back streets, alleyways, canals, bridges and gorgeous hidden squares (Campos) which make up the patchwork quilt of Venice. This is a city to totally lose yourself and wander aimlessly, admiring the hidden architecture, the arts and crafts, the restaurants. Venice almost falls over itself to impress, and it doesn’t fail. A final mention for the Danieli is that it forms part of Starwood’s Luxury Collection in Venice, with the global chain somehow pulling off a trifecta of total class with benchmark middle east | February 2016
sister properties at the Gritti Palace and the Westin Europa & Regina. Like the Danielli’s Terrazza both have signature waterfront dining spots which are an absolute must. The Gritti’s Club Del Doge enchanting outdoor terrace manages to be refined and yet relaxed at the same time, with its simple yet mouth-watering Venetian menu it’s the ideal spot for watching the sun glint off the Grand Canal as the Gondoliers ply their trade. Character’s such as Massimo whose broad smile and infectious humour while attending to your needs make an hour or two here a memorably pleasant affair. The Westin’s La Cuisina, again in a stunning setting on the Grand Canal facing the Santa Maria della Salute Church, is an education in food. This is a lesson which
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one should set aside sufficient time to learn from Chef Alberto Fol, whether you opt for A La Carte or his Tasting Menu. Here local dishes from Venice and the region are given his unique twist with surprises in every course. It is simply five-star dining at its best, a sitting in which an artist paints his own portrait of Venice’s glory, with food as his palette and your cutlery as his brush. There can be few cities which has endured such hype as Venice. Throughout the years it has been synonymous with romance, so much so that one could be forgiven for thinking that the reality could not possibly live up to one’s imagination. Happily, for this traveler at least, the exact opposite is true. Venice surpasses my art to capture so heed instead my advice — discover it yourself and write your own story. February 2016 | benchmark middle east
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Shangri-La Dubai S
by Scott armstrong
taring out at Dubai’s Burj Khalifa at night, the city streets far below a neon racetrack, one wonders how George Gershwin’s Rhapsody in
Blue — so synonymous with New York — would sound like played on an oud? For sitting in the Shangri-La Hotel Dubai’s Horizon Lounge gazing out at the world’s tallest building (it still is) illuminated against the dusk it’s hard to think that the composer would have objected to an Arabic twist to his musical portrait of the city he loved. Panning down to the streets below the busy lights of the traffic on the Sheikh Zayed Road blur to create the illusion that a timelapse film is playing out beneath you. All in all it’s a vista to be savoured, especially with something chilled in one’s hand. The Shangri-La Hotel Dubai is one of the venues in the busy emirate that simply works, it does exactly what you need it to, billing itself an oasis in the heart of the city. This traveler had come seeking a comfortable spot from which to assault
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Dubai Mall as a major shopping expedition was long overdue. I knew that this would be a perilous mission that would test my stamina to its limits. This would be no quick raiding party, rather a sustained marathon of a campaign, two days of retail trench warfare that would sap the spirit and drain the soul. Therefore one needed a five-star base of operations from which to launch the forays and the Shangri-La Hotel Dubai more than ably quitted itself for such an endeavor. A luxury retreat to retreat to after hours of forced marching, wading through a quagmire of tourists and locals in the world’s biggest mall (I think it still is?). I’d picked Shangri-La primarily based on past experience, enjoying excellent service at its Abu Dhabi property and being enchanted by its beautiful Barr Al Jissah resort and spa in Muscat, Oman. February 2016 | benchmark middle east
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While the Dubai property perhaps doesn’t have the space of those two properties to roll out horizontally it instead concentrates on climbing high with its luxury offering. Wisely I chose the one-bedroom suite with access to the Horizon Club, the hotel’s excellent club lounge with the generous view and a generous happy hour (with generous staff when pouring), which proved to be just the thing to revive my flagging mind and body after torture at the tills. The suite itself provided a quiet, spacious haven away from the madding crowds of the mall. The private lounge area removed any hotel claustrophobia, giving the guest the room to breathe without tripping up over suitcases (indeed it also provided a handy second bedroom for a teenager son). The main bedroom itself was an equally comfortable affair, the crisp white linen stretched across the huge bed, combined with panoramic views of Dubai intensified the feeling of space and light. Add to that a private dressing area and a huge spa-like bathroom with a deep marble bath for soaking in and a monsoon shower for reinvigoration. To refuel the Horizon Club does offer a selection of snacks but of course the hotel offers a number of choices, with Shang Palace being one of its better known brands, however Hoi An is an excellent alternative serving up food from Vietnam. Perhaps what makes this restaurant stand out is the passion for the food served by the restaurant team, who are entirely Vietnamese. They are rightly proud of the dishes they serve and their enthusiasm is so infectious one could hardly dream of not enjoying the meal set before you. All in all Shangri-La Hotel Dubai serves up a hotel which ticks all the fivestar boxes, and in fairness it probably deserves two ticks in each box. benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Fashion for Her
With Valentine’s Day around the corner, it’s time to get thinking about how to impress that special someone. Not sure where to start? Don’t panic as Bally, Kate Spade and BMW’s new sporty fashion range has it covered.
Bally
Dh5,690 From the boardroom to after-work drinks, this classic black and cream Bond Pocket Bally bag is a musthave this spring. A forever staple designed to complement every outfit.
Bally
Dh7,490 If there ever was a statement accessory, this shocking pick Bally Eclipse evening bag is it. Finished in luxuriously soft leather with a diamond quilt texture, the bag can be worn as a clutch or thrown over the shoulder.
BMW
Dh684 Look chic on the beach with these stylish unisex Motorsport Sunglasses with slightly mirrored ultra-light polycarbonate lenses – the ideal accessory for a sunny day.
BMW
Dh951 For all the fitness fanatics out there, the breathable Athletics Performance Functional Jacket is the perfect choice. It adapts perfectly to the body, and is ideal for a life on the move, whether that’s a stroll in the park, or a morning jog during the chilly months. 56
benchmark middle east | February 2016
February 2016 | benchmark middle east
Kate Spade Kate Spade
Dh140 Rather than wearing your heart on your sleeve, why not let a miniature version adorn your ears? Show your inner romantic with these heart studs - perfect for Valentine’s Day - and every other day of the year.
Dh 1,880 The bold Kate Spade Multi Stripe Kite Bow Back Dress is covered with graphic stripes, loosely inspired by the look of classic maritime flags. The cut, which features cap sleeves and a bow-bedecked back, is ultra flattering. Just add heels for a knockout look.
Kate Spade
Dh350 Soar to new fashion heights with this colourful ‘Born to fly’ gold-andenamel idiom bangle - a simple and elegant touch to any outfit.
Kate Spade
Dh1,310 Pack a fashion punch with this Kate Spade Cedar Street Kite Small Harmony bag. A colourful side kick day or night.
benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Fashion for Him
Sometimes its the small details that make all the difference. Put your best foot forward with a classic shoe, throw on a stylish jacket and refine your look with a simple leather belt and your look is often sorted. Find your new fashion heroes with the new collections from Vans, Timberland, Bally and BMW.
Timberland
Dh1,495
Bally
Dh1,090
Give your look a polished finish with this classic black B Buckle Leather Belt leather belt with sleek metallic accents. A smart and simple must-have accessory.
Need a winter wardrobe go-to that does more than keep you warm? Meet the Bolton Mountain Down Vest. In Harris Tweed wool, this padded number is perfect for a weekend adventure or night out on the town.
Timberland
Dh895
Bally
Dh1,690
This season's update on the classic driver presents itself in the form of the luxurious Dridor shoe, finished in black perforated leather. Classically comfortable.
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Boost your style game with Timberland’s Britton Hill 6-Inch warm lined leather and fabric boot. Durable both in the wearability and fashion stakes, team with a leather jacket and worn out jeans.
February 2016 | benchmark middle east
BMW
Dh605
Designed for men with a need for speed, this comfy yet stylish BMW i Hooded Jacket is designed to match one of the fastest hybrid sport cars in the world, the BMW i8. The multi-functional jacket is made of 100 per cent organic cotton, with roomy pockets and soft hood and is ideally suited for sports and leisure activities.
BMW
Dh497
Perfect for a business meeting or a special night with your significant other, these BMW cufflinks which resemble the iconic BMW car grille is a stylish way to finish your outfit.
Vans
Dh249
Who says fashion can’t be fun? Vans's new fast food-inspired Late Night Pack classic slip on range hits the stores this February and sees a quirky twist on the iconic footwear. With a number of different styles designed with tasty snacks, our pick of the bunch is the hamburger print.
benchmark middle east | February 2016
February 2016 | benchmark middle east
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Play Property
Top Five Properties For Rent
We’ve teamed up with Luxhabitat, Dubai’s only high-end real estate brokerage and interior design company, to bring you our top five choices to rent For more details on all these properties, and more, visit: Luxhabitat, Dubai's only high-end real estate brokerage and interior design company, at www.luxhabitat.ae or scan the QR code with your smart phone
Dh1.1million per year Four-storey villa, Palm Jumeriah The essentials City Dubai Area Palm Jumeirah Development Kempinski Residences Type Villa Availability Ready Lifestyle Private Communities Bedrooms 5 bedrooms Bathrooms 9 (5 ensuite) Built up area 12,277 sq ft Pool Overflow, heated and cooled community pool and overflow, heated and cooled private pool
A beautifully appointed property in the Kempinski Hotel Residence, this stunning villa works perfectly as short or long term rental within the grounds - and with all the benefits - of a luxury five-star resort hotel. Relax on your own private balcony, terrace, or even your own private rooftop swimming pool and enjoy panoramic views of the Arabian Gulf - taking in the majestic Atlantis Hotel - or soak up the beach view to the fronds of Palm Jumeirah and onward to the Marina. The fivebedroom villa comes fully furnished and is finished with a European classical flair with expansive family and entertainment areas and opulent bedrooms.
Dh685,000 per year Fully furnished four-bedroom Palm Jumeirah villa
The essentials City Dubai Area Palm Jumeirah Development Fronds, Garden Home Type Villa Availability Ready Lifestyle Sea-Front Properties Bedrooms 4 bedrooms Bathrooms 5 (4 ensuite) Built up area 5,000 sq ft Pool Overflow private pool
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This gorgeous North West-facing Central Rotunda villa is the epitomy of style and elegance and is brand new to market - and sure to be snapped up by discerning renters. The bright and airy French style open kitchen is perfect for entertaining as is the ample garden patio area off the formal living and dining areas which overlook a private beach and swimming pool. The villa boasts four generous-sized bedrooms with expansive sea views and a large master suite overlooking the Arabian Gulf and the iconic Atlantis hotel. The two upper level bedrooms also offer private balconies. The fully furnished villa also comes with a maid’s room and two allocated parking spots. February 2016 | benchmark middle east
Property Play
Dh230,000 per year Furnished beachside duplex loft in Jumeirah Beach Residence
The essentials City Dubai Area Jumeirah Beach Residence Development Shams Type Duplex Availability Ready Lifestyle Luxury Penthouses Bedrooms 1 bedrooms Bathrooms 2 (1 ensuite) Built up area 1,680 sq ft Pool Community pool
Located in the heart of Dubai's liveliest community with access to an abundance of restaurants, bars and upscale lounges within minutes walking distance, this prestigious and airy Duplex loft is fitted with modern art, custom-fitted wardrobes, stylish furniture and next-generation technology. A jet-setter's ideal place to call home, this loft space is fitted out with every amenity that the discerning resident requires. The apartment boasts two VIP prominently placed parking spaces, an open plan bedroom, open plan living room, two bathrooms and a home entertainment set and surround sound.
Dh350,000 per year 5 bedroom beachfront attached townhouse on Palm Jumeirah
The essentials City Dubai Area Palm Jumeirah Development Palma Residences Type Attached townhouse Availability Ready Lifestyle Sea-Front Properties Bedrooms 5 bedrooms Bathrooms 7 (4 ensuite) Built up area 3,336 sq ft Pool Community pool
With direct beach access to Dubai’s golden sands, this peaceful sea-front townhouse boasts one of the best rentals addresses in the emirate.Stepping into the open plan layout with large and bright windows, the living room has high ceilings and a semi-open, spacious kitchen. Next to the front door there is a laundry and maid's room. One of the five bedrooms is also located on the ground floor — perfect for either a guest room or as a home office. The wide marble staircase will bring you up from the living room to the first floor. All four bedrooms have en-suite bathrooms. Two bedrooms offer beach and sea views and the other two are facing the street.
Dh325,000 per year Three bedroom plus maid’s room apartment, Downtown Dubai
The essentials City Dubai Area Downtown Dubai Development The Residences Sub-development The Residences 1 Type Apartment Availability Ready Lifestyle Lake Surroundings Bedrooms 3 bedrooms Bathrooms 4 (2 ensuite) Built up area 1,902 sq ft Pool Overflow, community pool
benchmark middle east | February 2016
This bright three bedroom apartment boasts floor-to-ceiling views of the famous Burj Khalifa, the lake and dancing fountains and a balcony to you can enjoy the panoramic scenery whilst enjoying the warm Dubai weather. Entering the apartment you arrive at the main hall with two guest bedrooms with en-suite bathrooms on your left and a guest bathroom and large maid's room to your right. Continuing towards the main living area you have a bright and airy kitchen with builtin Bosch appliances and generous-sized breakfast room on one side and on the other you have a large open-concept living and dining room. February 2016 | benchmark middle east
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Play Property
Top Five Properties For Sale
Luxhabitat, Dubai’s only high-end real estate brokerage, gives us the rundown on the top five choices for sale in the emirate
For more details on all these properties, and more, visit: Luxhabitat, Dubai's only high-end real estate brokerage and interior design company, at www.luxhabitat.ae or scan the QR code with your smart phone
Dh12.7million Penthouse, Dubai Marina, La Riveria
The essentials City Dubai Area Dubai Marina Development La Riviera Type Penthouse Availability Ready Lifestyle Luxury Penthouses Bedrooms 5 bedrooms Bathrooms 6 (5 ensuite) Built up area 6,732 sq ft Pool Infinity, community pool
This five-bedroom penthouse is located in the heart of Dubai overlooking Sheikh Zayed Road, the Dubai Marina and the Arabian Gulf. With views showcasing the emirate at is best, the floor-to-ceiling design takes in some in the show-stopping Dubai Marina with its abundance of luxury yachts moored in the azure waters.The apartment is spread of the entire top floor of La Riviera and has been custom-built with an elegant and stylish finish. The large living room and multiple terraces invites residents to entertain guests in complete privacy. Five large bedrooms including ensuite bathrooms also make the apartment also an ideal property for family living.
Dh17.5million 7 bedroomed villa, Al Barari, Dubai
The essentials City Dubai Area Al Barari Development Acacia Type Villa Availability Ready Lifestyle Private Communities Bedrooms 7 bedrooms Bathrooms 9 (7 ensuite) Built up area 16,448 sq ft Plot size 16,404 sq ft Pool Private pool
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This large Acacia villa is the biggest of all four types available in the exclusive Al Barari development, boasting seven en-suite bedrooms, a separate formal and family living and dining areas, family kitchen and service kitchen and additional open-plan family living area. The property also has a study with ensuite, separately-accessed guest room with private plunge pool, laundry, two basement rooms with bathroom, self-contained maids living quarters, a three car garage, a powder room, two private cooled and covered courtyards,lush landscaped gardens, a swimming pool and plunge pool, pool pavilion and spa, roof terraces with roof gardens, covered first-floor terraces, two barbecue areas. February 2016 | benchmark middle east
Property Play
Dh35million 6 bedroom villa, Emirates Hills, Dubai
The essentials City Dubai Area Emirates Hills Development W Sector Type Villa Availability Ready Lifestyle Golf Retreats Bedrooms 6 bedrooms Bathrooms 7 (6 ensuite) Built up area 8,616 sq ft Plot size 21,689 sq ft Pool Private pool
This stylish geometrical home fuses strong Scandinavian design influences with the more traditional interpretations of the Arabian courtyard home. The property is to be sold fully furnished with exquisite branded pieces from the four corners of the world. The villa is comprised of the main house, a two-bedroom guest house and the staff quarters cleverly connected by walls or terraces. As you enter the modern style living room, the sandstone mosaic wall is the most prominent feature of the room. Following the dark stained oak flooring further into the house you arrive at the central lobby and stairs which is amplified by a curved stainless steel stair case leading you to the first floor.
Dh4.8million Three bedroom duplex, Dubai Marina, Dubai
The essentials City Dubai Area Dubai Marina Development Marina Quays Type Duplex Availability Ready Lifestyle Marina Living Bedrooms 3 bedrooms Bathrooms 4 (3 ensuite) Built up area 2,042 sq ft Pool Community pool
This stunning three bedroom duplex is located in one of the most sought after communities in Dubai Marina, Marina Quays and offers jaw-dropping views of the emirate’s famous skyline. Located in the East Tower the two-floor property features full Dubai Marina views from every room and has undergone extensive renovations to bring the utmost in modern luxury. The balcony overlooks the entire Dubai Marina and invites residents and their guests to enjoy everything the area has to offer. The duplex, which also boasts a reception service, two allocated parkings, communal sauna, communal gymnasium, communal bbq and communal squash court, can be optionally bought fully furnished.
Dh2.8milion Two bedroom apartment in Marina Promenade, Dubai Marina
The essentials City Dubai Area Dubai Marina Development Marina Promenade Sub-development Marina Promenade, Paloma Tower Type Apartment Availability Ready Lifestyle Marina Living Bedrooms 2 bedrooms Bathrooms 2 (1 ensuite) Built up area 1,443 sq ft Pool Community pool
benchmark middle east | February 2016
This fantastic two-bedroom apartment is located on one of the higher floors in Marina Promenade - Paloma Tower and offers stunning views of Dubai Marina and the Arabian Gulf. The luxurious and expansive living area adjourns a stylish open kitchen. The master bedroom comes with a spacious ensuite bathroom while the second bathroom is located outside the second bedroom. The Marina Promenade development is one of the most sought after sub-communities in Dubai and is an example of prime real estate not only in the emirate but across the UAE. The development consists of six modern glass high-rise towers positioned right on the waters edge. February 2016 | benchmark middle east
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Play Events Planner Live music to suit all tastes can be found in the UAE this month. Boy band The Vamps – often compared, favourably or otherwise, to One Direction – is playing at the upcoming RedFest DXB, while a slightly older (and indeed *much* older) crowd is expected at the Emirates Airline Dubai Jazz Festival, where Sting, former star of The Police, is set to perform. And then there is the Dubai Classics 2016, which the organiser promises will set “a new milestone” on the classical scene. Here is Benchmark’s guide to going out over the next few weeks. 3. Dubai Duty Free Tennis Championships 2016
CREDIT: shutterstock
When | February 15-27 Where | Dubai Duty Free Tennis Stadium
CREDIT: emirateslitfest.com
1. Emirates Airline Dubai Jazz Festival 2016 When | February 24-26 Where | Dubai Media City Amphitheatre English singer and songwriter Sting (performing with master trumpeter Chris Botti), fellow British musician David Gray, the multi-Grammy award winner Carlos Santana, and the legendary US rock band TOTO are just some of the artists set to appear at the upcoming Emirates Airline Dubai Jazz Festival. The Jazz Fest – as it is popularly known – was launched in 2003 and has attracted thousands of music lovers over the years. The top-tier ticket option gives you access to the VIP terrace, with unlimited beverages all evening (from Dh1,250). Price: Dh325-Dh1,450 per day www.dubaijazzfest.com
2. Emirates Airline Festival of Literature 2016 When | March 1-12 Where | Intercontinental, Dubai Festival City Another Emirates-sponsored event, this time with more of a literary bent. The Festival of Literature is billed as the Middle East’s “largest celebration of the written and spoken word”, and gives visitors the opportunity to meet world-famous authors, attend literary debates and experience the accompanying children’s events. Authors announced for the 2016 edition include: Carol Ann Duffy, the UK Poet Laureate; fellow Scot Ian Rankin, author of the Inspector Rebus thriller series; Simon Armitage, author of numerous poetry collections; as well as – perhaps incongruously – Dom Joly, the British television comedian bestknown for his hidden-camera show ‘Trigger Happy TV’. Price: Check website for ticket information www.emirateslitfest.com
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The Dubai Duty Free Tennis Championships is one of the biggest sporting events hosted in the emirate – and massive news globally, with a worldwide television audience of 400 million people, according to Deloitte. Some of the world’s biggest tennis stars are set to descend on Dubai for the annual tournament, which began life in 1993 as the Dubai Men’s Open. Last year, Roger Federer held off a strong challenge from world number-one Novak Djokovic to claim an historic seventh title. Price: Check website for ticket information dubaidutyfreetennischampionships.com 4. Omega Dubai Desert Classic 2016 When | February 1-7 Where | Emirates Golf Club, Dubai Some of the biggest names in golf are expected at this PGA European Tour-sanctioned event, which was first played in 1989. Previous champions include Ernie Els – the most successful player in the tournament’s history, having won in 1994, 2002 and 2005 – along with current champion Rory McIlroy, who became the youngestever winner in 2009, when he was aged just 19. Practice days will be held on February 1-2, followed by the Pro-Am Tournament, and then the four main rounds from February 4-7. The prize pool stands at a massive $2.65 million – so there’s a lot at stake. Price: Dh75 (Pro-Am Tournament); Dh175/day for main rounds; Dh675 for a five-day pass www.dubaidesertclassic.com February 2016 | benchmark middle east
CREDIT: dubaitour.com
When | March 4-5 Where | Abu Dhabi Sailing and Yacht Club, Abu Dhabi
7. Dubai Tour 2016
The season opener of the ITU World Triathlon Series 2016 includes several categories suited to different ability levels – with some attracting Olympic-standard participants. The ‘Sprint’ includes a 0.5km swim, 20km cycle and 5km run, while the ‘Olympic’ course involves a 1.5km swim, 40km cycle and 10km run. The most hardcore course – known as the ‘Maxi’ race – involves a 2km swim, 80km cycle and 20km run. If that all sounds a bit daunting, all course options can be run with friends or family as a team relay. There are also junior events across several different age groups. It’s being held in the pleasant surroundings of the Abu Dhabi Corniche.
When | February 3-6 Where | Across the UAE
9. Dubai Food Festival 2016
It’s one of the region’s most anticipated cycling events – although some spectators might get more enjoyment watching on TV rather than in person. The four-day Dubai Tour takes place over different stages, spanning many iconic locations in the UAE. All four stages start at the Dubai International Marine Club; the first sees riders race a 179km route to Fujairah; the second is a circular route to Palm Jumeirah (188km); the third is to Hatta Dam (172km); while the last stage is to the Burj Khalifa via a desert detour (132km). A total of 16 professional teams, each with six riders, have been invited to race; British star Sir Bradley Wiggins will be among those participating this year.
PRICE: Dh40+ (juniors); Dh450+ (adult individual entry) www.abudhabi.triathlon.org
CREDIT: dubaicalendar.ae
5. ITU World Triathlon Abu Dhabi
Price: Free to spectators www.dubaitour.com
When | February 25 – March 12 Where | Across Dubai Dubai residents and visitors are in for a waistline-widening treat for the taste-buds this month, with the start of the Dubai Food Festival. The festival’s Beach Canteen, located at Kite Beach, will be open every day during the festival, and include appearances from celebrity chefs, pop-ups stalls from home-grown restaurant concepts, music and activities for kids. The culinary extravaganza also includes the first-ever Dubai Restaurant Week, in which thirty of the best restaurants in the emirate will offer set menus at Dh189. Participating restaurants include the Rivington Grill at Souk Al Bahar (one of Benchmark’s favourites), The Ivy at Emirates Towers Hotel (another favourite), and the Bread Street Kitchen by Gordon Ramsay at Atlantis The Palm.
6. Qasr Al Hosn Festival When | February 3-13 Where | A bu Dhabi The oldest stone building in Abu Dhabi city is the backdrop to this annual celebration of both Emirati culture and the history of the UAE capital. The Qasr Al Hosn fort was home to Abu Dhabi’s royal Al Nahyan family for generations – and so is of great historical significance as the symbolic “birthplace of the emirate”. The Qasr Al Hosn Festival includes displays of ongoing conservation works and archaeological activities at the fort, as well as four themed ‘zones’ – desert, oasis, marine and island – offering a range of interactive activities, reenactments and workshops. Price: Check website for information www.qasralhosnfestival.ae benchmark middle east | February 2016
CREDIT: dubaicalendar.ae
CREDIT: redfestdxb.com
CREDIT: abudhabievents.ae
Price: Check website for details www.dubaifoodfestival.com
8. RedFest DXB 2016 When | February 11-12 Where | Dubai Media City Amphitheatre There are certainly some high-profile events being held at the Dubai Media City Amphitheatre this month. Music fans can expect two days of top acts – spanning the hip hop, RnB and pop genres – in early February. Steve Aoki, Rita Ora, Trey Songz, Fifth Harmony, Adam Lambert, Eva Simons, The Vamps and MistaJam will all be performing on the main stage at Virgin Radio RedFestDXB 2016. Price: Dh400+ (one day) and Dh700+ (weekend) www.redfestdxb.com
10. Dubai Classics 2016 When | February 11 Where | Dubai World Trade Centre Yet more music comes to the stage in the UAE this month. This Grand Gala Concert will “set a new milestone in the classical life of Dubai,” according to the organiser. It is set to feature some of the world’s greatest performers, including the Belgian-Russian violinist Vadim Repin, soloists of the Bolshoi theatre accompanied by world-renowned Italian Maestro Fabio Mastrangelo, and a chamber orchestra from St. Petersburg. Price: From Dh200 www.mpremiere.com February 2016 | benchmark middle east
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Play Health
Desk-side wellness debrief Five ways to boost your health quotient during the nine-to-five! By Sudeshna Ghosh
R
obert de Niro’s latest outing as a retired intern (The Intern, 2015) in a tech startup showed us how some companies actually invest in having an in-house masseuse. But let’s face it, there aren’t that many offices in this part of the world recruiting for wellness experts quite yet. (We looked. There aren’t). But that shouldn’t mean that you let the sedentary lifestyle affect your health negatively. And it can – sitting for extended periods has been associated with increased risk of diabetes, heart disease and other ailments. But, you knew that already, didn’t you? What you may not have known is just how easy it is to incorporate a little bit of wellness into your day, while sitting at your desk. Whilst we cannot emphasis enough the importance of getting up often to walk and move around, you can make the most of your time spent at your desk by making it – and what you do there – consciously healthier. Here’s how:
Do some desk-cercise The Internet is awash with ways in which you can sneak in discreet exercises while sitting at your desk. Whether it’s investing in a desk cycle (equipment that lets you pedal as you type), or simply changing your posture often, it all helps. Here’s a really simple way to stretch your hips while you’re sitting 66
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– just lift one leg to place the ankle on your other knee, to form a 4 shape with your legs. Lean forward while exhaling, then repeat with your other leg. This can help reduce muscle stiffness and lower back pain. Breathe easy Shallow breathing is one of the commonest malaises of our times. Make it a habit to take ten deep breaths every time you complete a task you do regularly – whether it’s after a phone call, or when finishing a short project. You should aim to do this every hour on average. Deep breathing not only alleviates stress, but also reduces inflammation and acidity in the body, helps in detoxification, stimulates the lymphatic system, and improves heart health. Spa your space Something as little as keeping an aromatherapy candle and a few fresh flowers can make a world of difference to how you feel when at work. Fragrances such as lime, lemongrass, orange, mint and ginger are naturally stimulating and energising. And if you are one of those who spend most of your day with headphones on – or better still, can have a small speaker on at your desk choose soothing meditation-style music. Before you know it, your desk will start feeling like a tranquil retreat you’ll want to escape to on weekends too!
Try tomatoes! The Pomodoro technique is a popular time management tool that breaks the day down into 25-minute chunks, with short breaks in between, to boost focus and productivity. We say, take things to the next level, and use the five-minute break in each interval to do something for your health. It could be a short meditation (there are apps aplenty to find these) or it could be getting out to climb a couple of flights of stairs. Or combine different techniques, and voila, at the end of your workday, you’ll find you’ll have notched up more than an hours’ worth of exercise and/or wellness activity. Disinfect The desk is an unexpected hotbed of germs –a UK study revealed that the average keyboard has more germs than an office toilet! (Yes, you can thank all your working lunches for that). To protect your health, clean your desk and everything on it regularly with a disinfectant wipe or a cloth dipped in cleaning solution (easily available in supermarkets). If you must eat lunch al desko, then make it a point to wipe down anywhere crumbs may have fallen immediately. And steer away from the shared office coffee mugs - bring your own and take it home every couple of days to have it thoroughly cleaned. You’ll be lowering your risk of catching common bugs. February 2016 | benchmark middle east