Who's Who GCC 2009 Magazine by Xavier Reig

OCTOBER 2009

GCC OVERVIEW Comprehensive analysis of all GCC member states

GCC INFRASTRUCTURE Building the future of the Gulf

GCC ECONOMY The changing face of commerce in the Gulf

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FOCUS International only works with audited media all around the world to assure our clients that our guides reach the highest profile of readers possible. It is to ensure our clients that we are one of the very few media companies that can reach out globally through other media outlets. Our editorial focus is to inform our high profile readers on the business, investment and tourism opportunities. Focus Internationalâ&#x20AC;&#x2122;s publications present an insiderâ&#x20AC;&#x2122;s perspective of the business potential of a country, giving readers an extensive economic overview of its economy, sector by sector, based on exclusive, in-person interviews with top executives and key government officials. We assure quality and a long-term commitment to our customers.

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Dear Readers, When one thinks of a political and economic union of member states, you could have previously been forgiven for thinking only of the European Union, but that is no longer the case with the progressive thinking GCC states. We have recently seen the Gulf Cooperation Council take enormous strides in improving trade relations the world over, beginning with the GCC common market which led to greater integration within the GCC. The economically inspired political reforms have since gathered pace with the Free Trade Agreement signed with EFTA. Experts had predicted a lengthy slump in the Gulf market due to the historic global economic downturn, but you will not see the respective governments of the GCC sitting on their laurels as they remain committed to their plans of investing a mind boggling US$1.5trn on infrastructure and construction over the next six years. These are certainly exciting times. Whether you are travelling to the GCC for business, to top up your tan on the beach, or to invest in the region, you will be greeted by its hospitable inhabitants with a culture that is as rich in its history as its diversity. This issue features the great business and political leaders of the GCC, from the small enterprises to the mega corporations. They have all played their part in building their communities, and it has been in a privilege to sit down with them to address the multitude of challenges that they face and discuss their future roles in ensuring the member states continue to move forward. Layla Hall Project Director

P.O Box 121828, Dubai. U.A.E Tel : +971 (0) 4 509 5590 Fax : +971 (0) 5 509 6797 www.focusinternational.com

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Project Director Layla Hall

Project Co-ordinator Ferda Gode Business Analyst Imran Saddique Editorial Contributor Mohamed Berray Edited and Designed at Spenta Multimedia www.spentamultimedia.com Editorial Team Anaita Vazifdar Baishali Chatterjee Benaifer J. Mirza Hardika Panchal Kanika Punwani Nikhil Subramaniam Regan Luis Rohit Paul Tanmoy Goswami Zainab Barodawala Art Director Rishita Chandra Graphic Designers Milind Parkar Riddhi Mehta

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OCTOBER 2009

Overview 06

GCC Overview

New Vistas

World Stage

14 16

A bird’s-eye view of the futuristic national visions of the GCC member states. With a prosperous history behind it, Abu Dhabi is diversifying and looking beyond oil. A magnet for global investors, Dubai’s story is inspiring the entire Gulf region.

Solid Foundations

Sky is the Limit

Kuwait, already the fourth richest country in the world, is looking to scale even greater heights.

Changing Face

Even Keel

Building Blocks

Surging Ahead

Serving Qatar

Greener Pastures

Express Delivery

Health Capsule

Holistic Health

Open Doors Saudi Arabia wants to establish itself as a modern industrial powerhouse while preserving its Islamic heritage.

Holding Fort

Propelled by its keen sense of modernity and respect for tradition, Bahrain has become an icon of the new-age Gulf.

Change Game Driven by a forward-looking leader, modern Oman is an inspiring story of liberalisation, social reforms and broad-based growth.

Future Perfect Qatar posted its eighth consecutive budgetary surplus in 2008, but the petrodollar phenomenon is not all that defines the country.

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Infrastructure The infrastructure sector is seeing major activity and helping build a strong base for the GCC’s bright, bold future. Reem Emirates Aluminium. Tamouh. Akwaan Properties. Bahrain Bay. Qatari Diar. Green Crescent Insurance Company. DHL Express Bahrain. Dubai Health Care City. Seha.

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Economy 34

Gulf Course

United Front

The world has known the Gulf as the Petrodollar Giant, and the Giant is now finding new reasons to roar in the global marketplace. In a world where the comfort of numbers is often the key determinant of progress, a monetary union between the GCC member states needs no hard-selling.

Wealth Watch

The ‘How’ Factor

Leading Light

Front Runner

Oil and energy

47 48

Energy Hub

Even as the petrodollars continue to flow, the GCC nations are at the forefront of research and implementation in renewable energy sources. Energy City Qatar.

Al Hilal Bank. Qatar International Islamic Bank. Al Baraka Banking Group.

Tourism 57

Tourism Boom

Racing Ahead

Ads in Motion

Driving Ahead

Forward March

Leading the Way

Flying High

Vision Inovest Inovest Bahrain.

Building Trust Al Badie Group.

Driven by Vision Bin Jabr Group.

Growth Path Al Jaber Group.

Small and Medium Enterprises 50

Talent Hunt

Attention to Detail

Leading by Innovation

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Driving Force

The Gulf is home to some of the world’s largest sovereign wealth funds.

Family Groups 46

Millions continue to flock to the Middle East for a spiritual journey, to soak in the sights or just to relax. Abu Dhabi Motorsports Management. Inmotion. Ali & Sons. Vision Hotel Apartments, Le Royal Meridien. Kuwait Crowne Plaza. Aviation Club Dubai.

Khalifa Fund. Baker Tilly. Al Aas Group. Control Contracting and Trading Company, Abu Dhabi Services Office, ADCOM Manufacturing.

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FOCUS

GCC OVERVIEW An introduction to the GCC member states

The UAE The world will be hard-pressed to find two more exciting stories of diversification and futuristic planning than Abu Dhabi and Dubai – the shining jewels of the United Arab Emirates (UAE).

HH Sheikh Mohammed Bin Rashid Al Maktoum

set to make headlines in the times to come.

HH Sheikh Khalifa Bin Zayed Bin Sultan Al Nahyan

Abu Dhabi, the capital of the UAE, owns 95% of the UAE’s oil and 92% of its natural gas resources, which have been responsible for its consistent position at the top of the GDP chart in the Emirates. But in synch with the GCCwide drive for sustainable development, it has now crafted the Economic Vision 2030 under the visionary supervision of His Highness Sheikh Khalifa Bin Zayed Bin Sultan Al Nahyan, aiming to build an empowered private sector, foster strong international relationships, optimise resources and uphold values and culture. Dubai, the other beacon in the UAE, is also gearing up with its own Strategic Plan 2015 under the leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum. Already in an enviable position as a retailers’ paradise, a tourism hub, and a hotspot of real estate and construction activity, the UAE’s twin pride look

Saudi Arabia Saudi Arabia has traditionally been at the apex of Islamic glory by virtue of being home to the holy shrines of Mecca and Medina. It also wears the crown of being the largest contributor to the GCC’s total GDP, creating an enchanting mix of wealth and cultural heritage. In due recognition of the kingdom’s importance in the region, its capital city Riyadh has been chosen as the seat of a pan-GCC central bank GCC Monetary Union. But then, with

great powers come great responsibility. To reduce its dependence on oil and also promote a climate of growth for homebred talent, the Saudi government has devised the National Vision 2020, which seeks to establish “a diversified and prosperous economy that guarantees the existence of rewarding job opportunities and higher levels of economic welfare for the Saudi citizens, and provision of education and health care for the population to equip the labour force with adequate skills, in addition to preserving the religious values and cultural heritage of the Kingdom.” Under the leadership of His Royal Highness King Abdullah Bin Abdul Aziz Al Saud, Saudi Arabia looks set to start an exciting journey of balancing high tradition and modern financial infrastructure. Kuwait Kuwait literally means ‘a fortress built near water’, and the country has

HH Amir Sabah Al-Ahmad Al-Jaber Al-Sabah

HRH King Abdullah Bin Abdul Aziz Al Saud

shown enough resilience to justify its name. Once ravaged by the Gulf War, Kuwait has not only sprung back to financial health, becoming the world’s fourth richest country in the process, it has also scripted an engaging story of economic diversification and prudent

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FOCUS policy-making. Though the recent economic crisis has forced a rethink on many of the country’s financial sectors, His Highness Amir Sabah Al-Ahmad Al-Jaber Al-Sabah has moved forward with his vision of social and economic liberalisation. Kuwait today produces 10 per cent of the world’s oil and its National Vision 2020 lays out a plan to further increase this with the help of cutting-edge technology and worldclass human expertise. The country is using its enormous clout in the oil sector to tailor its future plans, which includes strengthening its already robust fiscal and external positions. On the cards is a comprehensive plan to fast-track privatisation and structural reforms, including topnotch administrative support. The fortress of the Gulf stands tall amid this atmosphere of change. Oman When His Majesty Sultan Qaboos Bin Said took over the reins of Oman in 1970, the biggest challenge facing him was converting its traditionally insular economy into a magnet for global investors. An equally, if not more, daunting task was to iron out the factionalism that had blocked Oman’s social and political development for years. Almost four decades down the line, the Sultan stands proudly at the helm of one of the Gulf ’s most peaceful kingdoms, and also one of its most inspiring economic turnaround stories. An active promoter of trading

HM Sultan Qaboos Bin Said

FOCUS INTERNATIONAL and diplomatic goodwill between its powerhouse neighbours as well as global behemoths like the US, modern Oman has become synonymous with unfettered progress and free-thinking policies. National Vision Oman 2020 is an attempt at chartering the next episode of this change game. A blue print for longer-term growth, the national vision is being projected by the government as a watershed in Oman’s evolution into a competitive economy, helping it break free from the Gulf ’s conventional and hitherto exclusive link with petroleum resources.

envisages Bahrainis further raising their disposable incomes and making inroads into the many industries hosted by the country as skilled professionals, thereby reducing the dependence on expatriates. Qatar Qatar has for long enjoyed the world’s attention for the kind of lifestyle

Bahrain “At the heart of the Economic Vision (2030) lie the aspirations for our economy, government and society in

HE Hamad Bin Khalifa Al-Thani

HM Hamad Bin Isa Al Khalifa

accordance with the guiding principles of sustainability, competitiveness and fairness,” reads the blueprint for Bahrain’s long-term growth. No tall order this, because the country has established a long-standing reputation for being a leader when it comes to blending economic growth and social dynamism. Bahrain is truly a global microcosm within the Gulf universe, boasting of some of the finest aggregations of socio-economic influences from around the world. Not only has His Majesty Hamad Bin Isa Al Khalifa’s country led the way in the Gulf when it comes to modern education systems and lifestyle, it also made headlines by becoming the first GCC state to sign a free trade agreement with the US in 2004. The next era of development will be shaped by the Vision 2030, which

common in Western European countries, but that need not be the paradigm any more. His Excellency Hamad Bin Khalifa Al-Thani’s spirited administration has brought Qatar to the threshold of ultimate glory in the global economy, provided it meets expectations by surpassing Luxembourg as the country with the highest per capita GDP next year. In addition to building on its position of strength in natural gas – of which it is the world’s third largest producer – Qatar is eyeing all-round progress in the next 20 years as part of its National Vision 2030. This framework for holistic growth stresses human, social and environmental development as much as it does economic growth, in order to establish Qatar as a “knowledge-based economy characterised by innovation; entrepreneurship; excellence in education; a world-class infrastructural backbone; the efficient delivery of public services; and transparent and accountable government”. Modernisation along with heritage preservation and managed growth as opposed to uncontrolled expansion should help elevate Qatar as the model state it wants to become. n

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new Vistas

The capital of and largest oil producer in the Emirates, Abu Dhabi has enjoyed a prosperous history. Its future vision involves looking beyond oil and towards more diverse sectors. HH Sheikh Khalifa Bin Zayed Bin Sultan Al Nahyan President, United Arab Emirates, and Ruler, Abu Dhabi

he capital of the United Arab Emirates (UAE), Abu Dhabi is the hub of all political activities in the Emirates as well as the residence of the Emirati Royal Family. The state is run primarily by an Executive Council which is chaired by the incumbent Crown Prince. The members of the Al Nahyan family are the hereditary rulers of Abu Dhabi. The most influential of these rulers was His Highness Sheikh Zayed Bin Sultan Al Nahyan. Sheikh Zayed was declared ruler of Abu Dhabi in 1966. He was instrumental in the formation of the UAE and was elected its first president in 1971. He was known for his foreign policy skills and played a major role in the formation of the GCC through his credos of open dialogue and cooperation as well as through his commitment to Arab solidarity. After his demise in 2004, Sheikh Zayed was succeeded by his son, His Highness Sheikh Khalifa Bin Zayed

Much of Abu Dhabi’s history is linked with the achievements of Sheikh Zayed. Al Nahyan, the current President of the UAE. Sheikh Khalifa has retained several of his father’s values and beliefs,

and continued the social development of the UAE. His major contribution to the UAE has been towards building a stronger national defence. The current deputy of the Armed Forces is His Highness Sheikh Mohamed Bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi. Under the able guidance of Sheikh Khalifa and Sheikh Mohamed, the government of Abu Dhabi has developed the Abu Dhabi Economic Vision 2030 and the Abu Dhabi Plan 2030: Urban Structure Framework Plan. Geography The westernmost and largest of the emirates, Abu Dhabi occupies almost 87 per cent of the UAE. It is bordered by Oman on the southeast and Saudi Arabia on the west and northwest. Its principle cities are Abu Dhabi City and the oasis city of al-Ain. Abu Dhabi is primarily a desert, surrounded by approximately two dozen coastal islands with another six islands located further in the Arabian Gulf. Population Recent census figures place the population of Abu Dhabi at approximately 1.5 million making it the most populous Emirate in the UAE. Similar to the other Emirates, Abu Dhabi has a large expatriate

population. A little over 20 per cent of its population comprises UAE nationals. History Much of Abu Dhabi’s history is inextricably linked with the achievements of Sheikh Zayed, who is responsible for the all round development of the UAE and Abu Dhabi. It was under his rule that the idea to create a federation of seven states was realised, and consequently he was elected the first president of the UAE in 1971. The UAE flourished under his rule, and the Supreme Council re-elected him every five years until his demise in 2004. Under Sheikh Zayed’s impetus, the UAE focused on oil revenues, making it one of the highest rankers in the Arab world in terms of GDP per capita income. The Sheikh was also environmentally conscious. His efforts in the areas of agriculture and forestation earned him the epithet of the “man who turned the desert green” from the Daily Times, and a Golden Panda Award from the World Wildlife Fund. By focusing on issues such as health, education, infrastructure and women’s empowerment, Sheikh Zayed ensured that the oil wealth generated by the UAE was used not only for economic development, but also for social development.

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FOCUS INTERNATIONAL

Economy Abu Dhabi is the largest oil producer of the UAE, owning 95% of its oil and 92% of its natural gas resources and, thus, has historically had a high GDP. However, like the rest of the UAE, Abu Dhabi is moving away from its dependency on oil and using oil revenues to invest in diversifying its economy. In accordance with this goal, the government has published the Abu Dhabi Economic Vision 2030.

and financial services will be the key focus areas under the plan.

Abu Dhabi Economic Vision 2030 The Abu Dhabi Economic Vision 2030 is a long-term plan focused on transforming the Emirate from an oil dependant economy to one with a focus on knowledge-based industries.

reached when complemented by social development. In this pursuit, the vision aims to develop education and health services and focus on providing fair employment to all nationals.

Economic Development By concentrating on the non-oil sector, the vision aims to achieve 7 per cent annual economic growth till 2015 and 6 per cent thereafter for the next 15 years. The non-oil sector is expected to account for 50 per cent of Abu Dhabi’s GDP from 2015 onwards. The government plans to achieve this growth by encouraging investment and entrepreneurship with the goal of creating a more global business environment. Tourism, telecommunications, pharmaceuticals

The kingdom will launch six Economic Cities that will pump in US$150bn to its GDP.

Infrastructure and environment The vision further links economic development to better road and transport facilities while at the same time bearing in mind Sheikh Zayed’s commitment to the environment. Government Finally, the vision maintains that development of the aforementioned areas is only possible through a review and improvement of government and legal processes. Abu Dhabi Plan 2030: Urban Structure Framework Plan Supplementary to the Economic Vision is an Urban Structure Framework Plan which concentrates on infrastructure development. The plan takes into account that Abu Dhabi may need to accommodate a

Challenges Looking forward, Abu Dhabi’s challenges lie in discovering the human capital required to facilitate building the planned infrastructure projects, keeping in mind the high standards of quality put forth in its proposals. Additionally, Abu Dhabi will have to factor in growing inflation rates without compromising on the developmental elements of its plan. Finally, it will be interesting to see how the UAE’s withdrawal from the GCC monetary union plays out for Abu Dhabi. n

Photo Courtesy ADTA

Overview The vision identifies a set of immediate economic priorities which include developing a globally integrated business environment, an effective fiscal policy, an efficient labour market, and a skilled workforce. The vision identifies nine pillars that will work as guidelines for aligning all policies. These pillars include an empowered private sector, strong international relationships, optimization of resources and maintaining of values and culture, and a continued contribution to the federation of the UAE. Furthermore, the vision will focus on four interlinked key areas: Economic Development, Social and Human Resource Development, Infrastructure Development and Environmental Sustainability, and Optimisation of Government Operations.

Social Development The government recognises that true economic development can only be

population of 3 to 5 million by the year 2030 and plans infrastructure growth accordingly. The framework covers the following agendas: • Sustainability, which includes maintaining a commitment to environmental preservation. • A Unique Environment, which involves ensuring the conservation of Abu Dhabi’s natural heritage • An Evolving Culture, which necessitates creating new development keeping in mind the best interests of all income levels. • Identity and Opportunity, which implies retaining Abu Dhabi’s image of an urban and progressive city with modern amenities, without losing the natural identity it sustains by virtue of being surrounded by the desert and the sea. • Excellence and Livability, which entails developing a set of principals to monitor the quality and quantity of new infrastructure projects. • Connectivity, which involves creating a comprehensive transportation network.

Emirate Palace Gates

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world stage

From a small sheikhdom to an irresistible magnet for global investors, Dubai is an inspiring story that epitomises the Gulf today. Driving the Emirate is a strategic vision for a sustainable future. HH Sheikh Rashid Bin Saeed Al Maktoum Emir of Dubai

nitially a desert town known predominantly for its pearl exports, Dubai has today emerged as a retailers’ paradise, a tourism hub, and a hotspot of real estate and construction activity. A lot of the credit for this transformation goes to its current ruler Sheikh Mohammed Bin Rashid Al Maktoum. Sheikh Mohammed, who is also the Prime Minister and Vice President of the United Arab Emirates (UAE), has been the key visionary behind several real estate projects, such as the Palm Islands and the Burj Al Arab Hotel, which have provided a tremendous boost to tourism in Dubai. In February 2007, Sheikh Mohammed announced the Dubai Strategic Plan 2015, a guideline to further strengthen Dubai’s economic position, both internationally and regionally. The Sheikh is also known for his charity work. In 2007, he set up the Mohammed Bin Rashid Al Maktoum Foundation with an endowment of US$10bn. The foundation works on improving and increasing the reach of education through initiatives such as the ‘Dubai Cares’ campaign. Geography A part of the UAE, Dubai lies within the Arabian Desert. It shares it borders with Abu Dhabi, Sharjah and Oman. Its location on the coastline of the Persian Gulf and its proximity to India

has made it an important port for the import and export of goods.

allowing Dubai to govern most of its affairs independently.

Population Dubai has a population of 1.4 million. It is the most densely populated of the seven emirates of the UAE. Dubai is a city of immigrants, and Emiratis comprise only 17 per cent of its population. The high expatriate population has its roots in the discovery of oil in the 1960s, which saw an influx of Indian and Pakistani workers into the city. The Lebanese civil war in the 1970s lead to another wave of immigrants seeking refuge; and the Persian Gulf War of 1990 saw several foreign trading companies moving their Gulf headquarters to Dubai.

Economy Till the early 1900s, Dubai’s economy was largely dependent on the export of pearls. However, with the introduction of artificial pearls in the market and the Great Depression of 1929, the pearl industry took a big hit. The discovery of oil in 1966 changed the face of Dubai’s economy. The government’s decision to use oil revenues to develop the tourism, trade and service sectors of the Emirate transformed it from just a port of trade to the bustling metropolis it is today. The establishment of the Jebel Ali Free Zone – a port which provided foreign companies with unrestricted export and import capabilities – was a critical step in the development of Dubai. Its success led to the opening of other free trade zones, such as the Dubai Internet City, Dubai Maritime City and Dubai Knowledge Village. Additionally, investments in tourism proved lucrative and yielded high returns. The returns on investment from trade and tourism have been especially important for the Emirate as it has lower oil reserves than its neighbours. Today, Dubai has gained the reputation of being a “centrally-planned-freemarket-capitalist” economy. Real estate, construction, trade and tourism

History Initially a dependency of Abu Dhabi, Dubai became a separate sheikdom in 1833 under the Al-Maktoum dynasty. In the following decades, and even after the formation of the UAE in 1971, Dubai and Abu Dhabi continued to clash over border disputes. A formal compromise was finally reached in 1979, which handed over control of most of the UAE to Abu Dhabi while

The discovery of oil in 1966 changed the face of Dubai’s economy.

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FOCUS make up the bulk of its revenues, with oil and gas contributing less than 6 per cent. Dubai Strategic Plan 2015 In 2007, the Dubai Strategic Plan 2015 was launched with the punch line “Dubai…where the future begins”. The plan provides an approach to strengthen and develop Dubai’s most promising economic sectors. Through this framework, the government aims to increase the annual GDP of the UAE to US$108 bn. The plan seeks to maintain Dubai’s reputation as a lucrative market for investment by pursuing five main goals – economic development; social development; security, justice and safety; infrastructure, land and environment; and public sector excellence. Broad objectives The underlying vision of the Dubai Strategic Plan 2015 is to achieve increased economic development and government modernization while simultaneously building human resources, sustaining prosperity and protecting national and public interest. Some of the main objectives of the plan are as follows.

FOCUS INTERNATIONAL Economic and social development Between 2000 and 2005, Dubai witnessed phenomenal economic growth, with its real GDP growing at a compounded annual rate of 13 per cent. In the process, Dubai overtook not only its GCC counterparts but also emerging behemoths India and China and developed economies such as the US and Singapore. The Strategic Plan aims to strengthen this development by sustaining a real GDP growth rate of 11 per cent over the next 10 years and increasing productivity by 4 per cent per annum. Additionally, the plan aims to improve education, healthcare, and social service systems for inclusive growth. Infrastructure, land and environment Real estate and construction have played a major role in Dubai’s economic boom. The plan aims to maintain and increase in land and infrastructure projects, while simultaneously focusing on sustainable development through effective utilisation of energy and land. Major emphasis is being laid on the development of the Dubai Metro and on building road networks.

Security, justice and government The government recognizes that efficient executive, judicial and security systems are crucial for maintaining growth, prosperity, and diversity. Accordingly, the Strategic Plan focuses on enhancing Dubai’s reputation as a safe city, developing a fast, fair and transparent judicial system, and acknowledging international human rights norms. Challenges Recent events in the global market, especially the drastic drop in real estate prices, have admittedly affected Dubai’s projected GDP growth. The main challenge for Dubai now lies in recovering from this recession, which adds even greater weight to the policy of economic diversification. Additionally, Dubai needs to develop a national talent base and decrease its dependency on expatriates. Most importantly, like all mega cities located at the intersection of hectic economic and social transformation, Dubai too needs to maintain the fine balance between a global attitude and local sensitivities. The future has truly begun. n

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OPEN DOORS

Oil behemoth Saudi Arabia wants to establish itself as a modern industrial powerhouse while preserving its Islamic heritage. National Vision 2020 will be the soul of this transformation. HRH King Abdullah Bin Abdul Aziz Al Saud Ruler of Saudi Arabia

he Saudi monarchy is the central institution of the Saudi Arabian government. The Basic Law of Government adopted in 1992 states that the Quran is the constitution of the country, which is governed on the basis of the Shari’a (Islamic Law). The country has been ruled by HRH King Abdullah Bin Abdul Aziz Al Saud since 2005. The king had in the past held important offices, including that of Second Deputy Prime Minister (1975) and Crown Prince and Deputy Prime Minister (1982). He has been noted for his contributions to the development of the National Guard and for fostering strong foreign relations. Geography Saudi Arabia lies in the Arabian Peninsula, with the Red Sea and the Gulf of Aqaba to the west and the Persian Gulf to the east. Divided into 13 provinces, its neighbours include Jordan, Iraq, Kuwait, Qatar, the United Arab Emirates, the Sultanate of Oman,

Saudi Arabia is the land of Islam, which is the world’s second largest religion. Yemen, and Bahrain. Saudi Arabia has the world’s largest continuous sand desert called the Rub Al-Khali or Empty

Quarter. The kingdom’s oil region lies mainly in the eastern province along the Persian Gulf. Riyadh is the capital of Saudi Arabia. Population In 2008, the population of Saudi Arabia was projected to be around 28 million. Once a land of nomadic tribes, over 95 per cent of Saudi’s population is now settled, thanks to rapid economic and urban development. Descendants of pilgrims, mostly Turks, Iranians, Indonesians, Indians and Africans, can be found in settlements along the Red Sea coast. As with other GCC countries, Saudi Arabia too is home to a large Asian expatriate population, primarily from India, Pakistan, Bangladesh, Indonesia and the Philippines. History Saudi Arabia is the land of Islam, the world’s second largest religion. The Islamic calendar commences in 622, the year of the hegira, or Muhammad’s flight from Mecca. Though several invaders tried to control the peninsula, it was the Ottoman Empire that wrested power by 1517. The peninsula was divided into separate principalities in the middle of the 18th century. In 1745, Muhammad Ibn Abd Al-Wahhab started calling for reforms in Islam. By 1811, Wahhabi leaders had successfully waged a

jihad, a holy war, aimed at uniting the peninsula. However, by 1818, the Wahhabis had again been ousted by the Ottomans together with their Egyptian allies. King Abdul Aziz Ibn Saud (1882-1953), a descendant of the Wahhabi leaders, can be regarded as the creator of the Kingdom of Saudi Arabia as it is known today. It was during his tenure that Saudi Arabia discovered its oil reserves (1938). Temporarily hampered by World War II, the Kingdom started production in full swing in 1949, thereby laying the foundations of a prosperous nation. In 1992, the now deceased King Fahd launched a series of political reforms to define the basic statutes of government and the procedures for royal succession. In addition, the reforms created provisions for the setting up of a national Consultative Council run by appointed members who hold advisory powers pertaining to issues of public interest. In 2005, Saudis voted in a municipal election after more than five decades. Another new chapter in Saudi national life was scripted when it joined the World Trade Organisation (WTO) in the same year. Economy Saudi Arabia accounts for more than 50 per cent of the total GDP of the

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FOCUS GCC region. The government plays an important role in the kingdom’s industrial activity through the public sector. However, in recent years, the private sector has risen as a major stakeholder in economic diversification. In 1999, the kingdom declared its intent to start privatising electricity firms, following the ongoing privatisation in telecommunication. About 40 per cent of the kingdom’s GDP now comes from the private sector. Oil riches have played the most significant role in shaping the high standard of living that most Saudis are today accustomed to. According to a study by PricewaterhouseCoopers, the Saudi capital Riyadh will be among the 50 richest cities in the world by GDP in 2020. However, the substantial growth in population has increasingly become a drag on the government’s efforts to further elevate living standards. Lopsided dependence on petroleum revenues has been another co ncern, though industry and agriculture now occupy a larger stake in the economy. Saudi Arabia and oil Saudi Arabia commands more than a fifth of the world’s proven petroleum reserves. It enjoys enormous clout in OPEC as the world’s largest petroleum exporter. The petroleum sector accounts for roughly 80 per cent of the kingdom’s budget revenues, 45 per cent of its GDP and 90 per cent of its export earnings. Over 95 per cent of all Saudi oil is produced by Saudi ARAMCO – the world’s largest fully integrated oil company – on behalf of the Saudi government. Economic planning Economic plans in Saudi Arabia have increasingly acted as a platform to divert revenues earned in the oil sector for the uplift of its relatively underdeveloped industrial sector. Infrastructure was the focal point of the first two development plans

The kingdom will launch six Economic Cities that will pump in US$150bn to its GDP.

FOCUS INTERNATIONAL covering the 1970s. The kingdom made giant strides during this era, tripling the reach of paved highways and recording a 28-fold increase in power generation. Appreciably, the spotlight shifted in the third plan (1980-85) to education, health, and social services. It was during this period that the two industrial cities of Jubail and Yanbu were largely completed. The kingdom’s basic infrastructure was deemed to have been almost complete by the fourth plan (1985-90). This period was important for the rise of the private sector in the economy, accounting for 70 per cent of non-oil GDP by 1987. The fifth plan (1990-95) marked another watershed through its focus on national defence, efficient governance and social services. Most importantly, it charted out the agenda of ‘Saudiisation’ of the economy by creating more opportunities for Saudis in the private sector and reducing the dependence on foreign labour. The sixth plan (1996-2000) highlighted the importance of diversifying economic activity, and the seventh plan (2000-2004) carried this agenda forward with greater stress on role of the private sector in the economy. The ongoing eighth plan (20052010) has continued along the tunes of economic diversification, but it has also added significant notes on education, tourism and the mainstreaming of women in Saudi life.

A key component of the government’s future plans are the six proposed Economic Cities. These cities being developed by the Saudi Arabian General Investment Authority are expected to contribute US$150bn to the Saudi GDP and catapult the kingdom into the ten most competitive economies of the world by 2020. The centrepiece of the project is the King Abdullah Economic City, spanning an area of 173 sq km and consisting of an industrial zone, a sea port, residential areas, a sea resort, an educational zone and a central business district. Challenges Though Saudi Arabia has been able to weather the economic shocks during the recent crisis, its growth rate has taken a hit. In a country considered to be ruled by one of the most authoritarian regimes in the world, greater civil society participation in socio-economic developments will be another challenge. As the country marches on with the target of transforming itself into a knowledge economy, human resource development among the indigenous population will also be a decisive factor. Being the largest member of the proposed GCC monetary union, Saudi Arabia will have to shoulder the additional burden of playing the role of a regional integrator, a challenge that should keep the nation engaged in the times to come. n

National Vision 2020 National Vision 2020 seeks to establish “a diversified and prosperous economy that guarantees the existence of rewarding job opportunities and higher levels of economic welfare for the Saudi citizens, and provision of education and health care for the population to equip the labour force with adequate skills, in addition to preserving the religious values and cultural heritage of the Kingdom.” Banking on the success of this plan, the government expects the kingdom’s per capita income to reach US$33,500 in 2020.

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HOLDING FORT

Kuwait is the fourth richest country in the world and supplies 10 per cent of the world’s oil. The country is looking to scale even greater heights riding on its National Vision 2020. HH Amir Sabah Al-Ahmad Al-Jaber Al-Sabah Ruler of Kuwait

n Arabic, Kuwait translates as ‘a fortress built near water’. With the distinction of being the fourth richest country in the world, modern Kuwait is indeed a formidable fortress in the hydrocarbon-hungry global economy. The country has been under the leadership of Amir HH Sabah Al-Ahmad Al-Jaber Al-Sabah since 29 January 2006. Before ascending to the Amiri Diwan, he occupied important portfolios in the foreign and information ministries. HH Sheikh Nasser Al-Mohammed Al-Ahmad AlJaber Al-Sabah is the prime minister of Kuwait. Kuwait is a constitutional monarchy, as laid down by the constitution of 1962. Governance is the prerogative of the Amir-led Council of Ministers, while legislative powers are vested in the 50-member National Assembly, which is the oldest elected parliament

among the Arabian countries in the Persian Gulf. Geography Kuwait is located in the northwestern part of the Arabian Gulf. The north and north-west region is bordered by Iraq. To the south and south-west is the Kingdom of Saudi Arabia. Due to its location, it acts as a natural passage to the north-east of the Arabian Peninsula, escalating its commercial importance. Kuwait occupies an area of 17,818 sq km and consists of nine islands. Politically, it is also divided into six governorates. The Amiri seat is located in the old part of Kuwait City. Population The population of Kuwait is approximately 2.6 million. More than 65 per cent of Kuwait’s population is composed of expatriates, though they are rarely granted citizenship. Indians form the single largest foreign ethnic group in Kuwait. History The earliest recorded history of Kuwait dates back to 1613, which is also the point of origin of the Amiri Al-Sabah family.

Under the reign of the Al-Sabahs, Kuwait flourished as an important port of commerce and had one of the largest sea fleets in the Persian Gulf. As with most of the Islamic world, Kuwait also came under the Ottoman power, but the Anglo-Ottoman convention of 1913 recognised the Amir as the autonomous ruler of the country. Foreign relations and defence affairs were under British control from 1899 until independence in 1961. The first export of oil, to Britain, took place in 1946. The Gulf War of 1990-91 ravaged the state, but it bounced back spending more than US$5bn in repairing its severely damaged oil infrastructure. The Al Sabahs returned to power after the end of the war, re-establishing the elected parliament which has become increasingly assertive in recent years. In the historic election of May 2009, four women were inducted to the National Assembly, marking a new dawn in Kuwait’s polity. Economy Kuwait’s economy is largely fuelled by oil production. With a reserve of 104 billion barrels, the country supplies 8 per cent of the world’s total oil. The demand for Kuwaiti oil is projected to grow up to 4mbpd by 2013. Total oil and gas exports are projected to reach US$35.2bn in 2009, whereas non-oil exports are expected to reach 4.7 per

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FOCUS cent when the total export of goods is at 40 per cent. About 95 per cent of the oil production in Kuwait comes under the control of Kuwait Oil Company (KOC), one of the 10 subsidiaries of the Kuwait Petroleum Corporation (KPC). KOC currently produces 2.4mbpd of oil and 1.2bcft of associated gas. The Burgan oilfield is the second largest in the world and is the source of the bulk of Kuwait’s oil. Apart from petroleum, the country has a well-developed banking sector led by the National Bank of Kuwait, which is one of the largest in the Arab world. Other major industries include shipping, water desalination, construction and tourism. Infusion of capital in the non-oil sector on the back of nine successive years of budgetary surplus (US$113bn) saw the sector eclipsing the growth rate of the oil sector in 2007, the first time this had happened since 2002. The country has simultaneously focused on strengthening its ageing oil infrastructure with a series of upstream and downstream projects worth US$51bn leading up to 2013. Economic diversification is currently the cornerstone of policy and planning in Kuwait. One of the most significant cogs in this process is the development of Madinat al-Hareer (The City of Silk), spread over an area of 250 sq km and estimated to cost US$94bn. The city will feature the Burj Mubarak al-Kabir, a natural desert reservation of 2 sq km, in addition to comprehensive business and tourism attractions. With the signs of weakness seen in the second half of 2008, the Kuwaiti authorities’ top priority is to stabilise the financial scene and cushion the economy from the global slowdown. However, the overall performance in 2008 was strong. Real GDP growth touched 6.4 per cent, as compared to 2.5 per cent in 2007, a result of higher oil production and robust non-oil GDP growth. Inflation peaked at 11.7 per cent (y-o-y) in August and started to moderate towards the end of 2008. Admittedly, the global financial crisis has affected the financial system, and a major hit was felt when the Kuwait Stock Exchange (KSE) Index

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fell by 50% in the aftermath of the Lehman Brothers fiasco. Though the forecast for 2009 is for a 1.2% contraction in the real GDP, correct policies may prevent things from worsening. The Central Bank of Kuwait has declared a stimulus package of US$5.17bn to help struggling companies and revive demand and liquidity. The IMF has lauded Kuwaiti authorities’ prudent macroeconomic policies, which have shielded the country’s strong fiscal and external positions.

Structural reforms will be an important growth driver for Kuwait. National Vision 2020 A central objective in Kuwait’s National Vision 2020 is increasing oil production to 4mbpd. To achieve this target, the country has secured access to top expertise, including international contractors, manufacturers and experienced and skilled manpower. The National Vision 2020 envisages the following action plan for KOC, which will play the driver’s role in the fulfilment of the vision. • Adopt a non-conventional drilling system and a judicious water management system. • Develop hydrocarbon reserves, infrastructure and operational capability to optimally tap market opportunities. • Focus on technically challenging reserves in Northern and Western

Kuwait and maintain production capacity in Southern and Eastern Kuwait. Kuwait’s long-term growth aspirations also include water security (nearly 75% of Kuwait’s water needs to be either desalinated or imported) and environment preservation. Challenges IMF Directors have stressed that Kuwait has to fast-track structural reforms in order to stimulate privatesector investment. It will be equally important to put in place clearer processes pertaining to business activities, such as those related to new business registration. Removing administrative bottlenecks and enhancing land access for private businesses and individuals also remain imperative for higher output. Though Kuwait’s medium-term outlook remains healthy, the sharp decline in oil prices in the near term may affect its balance sheet. Liquidity in the market remains tight; the slowdown in the financial and construction sectors and the fall in oil prices have added to the pressures on the economy. The government has to be careful about the effects of any large cuts in oil production. Credit squeeze and asset price deflation could pose additional risks to the financial system. In the medium term then, the main challenge will be to stoke non-oil GDP growth via private investment, which has already been recognised as a key policy driver. And with Amir Al-Sabah holding fort, no challenge appears too big. n

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even keel

Propelled by its keen sense of modernity and respect for tradition, Bahrain has become an icon of the new-age Gulf. National Vision 2030 will build on this platform. His Majesty Hamad Bin Isa Al Khalifa King of Bahrain

nown for its liberal worldview and modern infrastructure, Bahrain has established itself as a melting pot of global economic and cultural influences while simultaneously upholding its Islamic heritage. Notably, unlike some of its peer countries in the region, Bahrain does not owe its prosperity only to oil but also to the creation of an indigenous middle class. Bahrain is a constitutional monarchy and is ruled by King Sheikh Hamad Bin Isa Al Khalifa. Educated in England, King Hamad’s chief contribution has been towards the development of the country’s defence forces. He has also taken keen interest in science and technology, sports and the preservation of Bahraini history and traditions. According to the constitution of 2002, the Bahraini parliament consists of the Consultative Council, fully appointed by the king, and the Council of Representatives, popularly elected for four-year terms. The prime minister, appointed by the king, is the head of the government. HH Sheikh Khalifa Bin Salman Bin Hamad Al Khalifa has served as Bahrain’s prime minister since its independence in 1971. Before becoming prime minister, Sheikh Khalifa held several executive offices including President of the Monetary Council and the State Council. HH

Sheikh Salman Bin Hamad Bin Isa AlKhalifa, the crown prince, is another key administrator. Sheikh Salman holds a master’s degree in History and Philosophy from Cambridge and is also the chairman of the Economic Development Board. Geography Bahrain is an archipelago of thirty-three islands in the Persian Gulf, located to the east of Saudi Arabia. Almost the size of the Isle of Man, this tiny nation does not share a land border with any other country. More than 90 per cent of Bahrain’s area is desert land. It is strategically placed as a transit point for the region’s petroleum. Bahrain is divided into five governorates and has Manama as its capital. Population Bahrain’s small population of 727,785 is highly urbanised, and almost a third of it is composed of expatriates. According to the 2001 census, 80 per cent of Bahrain’s population follows Islam and the rest is a composite of Christians and other communities. History The Al-Khalifa family gained control over Bahrain from Persians in 1783. In the 19th century, Bahrain signed a series of treaties with Britain — then the dominant power in the

Persian Gulf — making it a British protectorate. This helped the country stabilise its polity and economy, and it soon became a thriving trading centre. Early in the 20th century, Bahrain started shaping itself as a modern state, witnessing a spate of major social reforms between 1926 and 1957 under the rule of Sheikh Hamad Ibn Isa AlKhalifa. It got its first modern school in 1919, while the first girl’s school in the Arab Persian Gulf was opened in 1928. Oil was discovered in 1932, freeing the country from its dependence on pearl diving. Bahrain achieved independence in 1971. Under the reign of King Hamad Bin Isa Al-Khalifa, Bahrain has furthered its agenda of political and economic reforms and has played a critical balancing role in diplomatic developments between its larger Gulf peers. It became a pioneer in commerce in the GCC region with the signing of the free trade agreement with the US in 2004. Economy Bahraini officials claim that theirs is the most diversified economy in the Gulf, and not without good reason. Since independence, Bahrain has gradually moved away from being an oil economy to a centre for petroleum processing and refining and banking. In 2004, Bahrain signed a free trade agreement with the US — a first for

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FOCUS Arab states, adding sheen to its status as one of the freest economies in the world. Thanks to its excellent transport and communication infrastructure, Bahrain has become a lucrative business locale for global firms seeking to tap the Gulf market. Foreign direct investment in Bahrain has risen from from BD0.2bn in 2003 to BD1.1bn in 2006. A strong financial sector (Islamic banking in particular) and robust growth in professional services, logistics, ICT and manufacturing sectors has helped the country in reducing the contribution of oil and gas to only 11 per cent of its GDP. In 2008, the City of London’s Global Financial Centres Index named Bahrain the world’s fastest growing financial centre, further reinforcing its emerging status as a broad-based powerhouse. Apart from oil and financial services, tourism and construction are important contributors to the Bahraini economy. Economic Vision 2030 “At the heart of the Economic Vision (2030) lie the aspirations for our economy, government and society in accordance with the guiding principles

FOCUS INTERNATIONAL of sustainability, competitiveness and fairness,” reads the blueprint for Bahrain’s long-term growth. Building on the significant strides made towards diversification, Economic Vision 2030 seeks to convert the country into a meritocracy that will help all citizens achieve a high standard of living. Under King Hamad’s guidance, the country is committed to instituting an administrative framework that will guarantee prosperity and well-being based on bankable social assistance, high-quality health care and modern education. This will be achieved through a mix of the following: • Ensuring that economic growth creates medium- to high-wage jobs and raises incomes in all segments of society. • Creating a level playing field in the job market for Bahrainis through immigration reform and the revision of labour laws. • Helping Bahrainis attain mediumto high-wage jobs through support programmes and lifelong training. A key objective enshrined in the Vision statement is the doubling of the disposable income of all Bahrainis by 2030. The private sector, which currently creates only 1,100 jobs per annum with a monthly salary higher than BHD500 for Bahrainis and about 2,700 jobs for expatriates, will need to be significantly strengthened to achieve this goal. In tandem, the local population will have to be endowed with the skills that make them desirable as employees in multinational companies. Economic Vision 2030 notes that the most competitive economies of the world place a premium on human resource development and on attracting and retaining the right person for the right job. “Globalisation and increasing competition make the country’s current reliance on cheap expatriate labour unsustainable…as

emerging global centres of low-cost manufacturing are gradually eroding this edge,” deems the government. As a result, it has identified the need to pursue an aggressive agenda of advanced training, heightened labour productivity and innovation, with particular emphasis on the applied sciences. A system ensuring constant monitoring and incentive provisions has also been envisaged to help motivate all stakeholders increase their output.

Bahraini officials claim that theirs is the most diversified economy in the Gulf. Apart from tangible economic ends, Economic Vision 2030 also seeks to establish parameters for fair competition in accordance with international laws and respect for human rights norms. This is in keeping with the country’s objective to woo sustainable development and establish itself as a model that other states can follow. Challenges As with the other countries in the GCC, Bahrain too finds itself at a crossroads. Faced with increasing pressure from the BRIC economies, Bahrain must push itself towards a whole new paradigm of growth, part of which it has already achieved through the unveiling of Economic Vision 2030. Equipping its underutilised workforce to take on the challenges of a multinational business setting will be the foremost task. In addition, the country will need to create enough engaging opportunities for the increasing numbers of college graduates in the country. Bahrain also scores a little below par when it comes to growth in labour productivity and indigenous scientific innovation – problems that are intertwined with the yet developing private sector and the oversized public sector. Creating a reliable medical infrastructure for its rapidly aging population and setting benchmarks for transparent governance will be critical goals as well. n

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change game

Driven by a forward-looking leader, modern Oman is an inspiring story of liberalisation, social reforms and broad-based growth. Vision Oman 2020 is the soul of this story. His Majesty Sultan Qaboos Bin Said King of Oman

redited with the distinction of being the most peaceful nation in the Gulf, Oman has been led by His Majesty Sultan Qaboos Bin Said since 1970. Educated in England and well versed in international polity, the Sultan has driven a long programme of civic and diplomatic reforms to establish Oman as an important stakeholder in the global order. During his tenure, the Sultanate has made significant strides in basic education, international relations and essential infrastructure. The latest, and perhaps the most ambitious, addition to his agenda is ‘Vision Oman 2020’, which aims to transform the once insular Omani oil economy into a liberal haven for non-oil industries. Geography Oman is located on the southeast coast of the Arabian Peninsula. It shares its borders with the United Arab Emirates, Saudi Arabia and Yemen. Notably, Oman has strategic access to the Strait of Hormuz, which is a transit point for 90 per cent of the Persian Gulf ’s oil.

Oman recognises the importance of reforms and partnerships to stay astride the rapidly changing global economy.

The Sultanate is divided into nine governorates and regions. The governorate of Muscat is the economic, political and administrative hub, offering a balance between traditional Omani ways of life and modern developments. Muscat is also the most heavily populated region in the Sultanate. Population Oman’s population stood at a little over 2.5 million in 2006. Like other countries in the Gulf, Oman is home to a large expatriate community, with numbers adding up to 600,000. Nearly half the total population lives in Muscat. History Before Sultan Qaboos Bin Said’s ascent to power in 1970, Oman’s political landscape was fraught with factionalist clashes between the emperor, who ruled over the ‘exterior’, and the Ibadite Imams, who controlled the ‘interior’. The parts under monarchic control were ruled with a strong isolationist bias, and there were virtually no external relations between Oman and its neighbours. The conflicts climaxed with the Dhofar Rebellion between 1965 and 1975, with leftist groups taking on the Sultanate. The rebellion was quashed with Iranian aid, and when Qaboos Bin Said rose to the helm, Oman had only one direction to venture in.

The new Sultan launched a large-scale modernisation and liberalisation programme, and one of his early priorities was to foster healthy diplomatic relations with neighbouring countries in the Gulf. With this in view, Oman joined the GCC in 1981. A historic border dispute resolution agreement was signed with the United Arab Emirates in 1991. Another crucial shift in Omani politics was scripted with the inclusion of women in the Consultative Council Majlis al-Shura in 1997, and the first female minister was appointed in 2004. Economic Reforms and Partnerships Oman recognises the importance of reforms and partnerships to stay astride the rapidly changing global economy. Accordingly, it has evolved from being an isolated economy to one that maintains a robust relationship with all its Arab neighbours and other important trade partners. The country has pledged its allegiance to the GCC ‘single currency, single market’ regime to be launched in 2010 and is also part of the Indian Ocean Rim Association for Regional Cooperation, which includes 18 nations. A free trade agreement with the United States took effect on January 1, 2009, removing tariff barriers on all consumer and industrial

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FOCUS products. A peaceful social climate, a strong banking system and a relaxed tax regime have added to Oman’s bid to establish itself as an attractive investment destination. WTO Membership Oman’s credibility as a partner in commerce received a shot in the arm when it signed the accession protocol to the WTO in Geneva in 2000. The Sultanate has since enacted and amended several regulations to conform to WTO standards, especially in the realm of customs valuation and intellectual property rights. The services sector has witnessed significant liberalisation, attracting FDI and technological expertise. The government has also put in place a strong framework to prevent moneylaundering and combat the financing of terrorism. Vision Oman 2020 Economic planning in Oman is based on active consultation between the government and non-government bodies, with the Ministry of National Economy drawing out five-year development plans. By 1995, Oman had completed four five-year plans. It was time to pause, drawing on experience to produce a new vision of Oman’s economic future. Vision Oman 2020 is a blue print for longer-term growth, projected by the government as a watershed in Oman’s evolution into a competitive economy. It seeks to diversify the economy’s revenue sources, helping it break free from its dependence on oil. As indicated by Salim Bin Hamad Al Kimyani, chairman of the economic committee at the State Council, the Sultanate will make efforts to attract heavy industries and nurture small and medium enterprises by providing best-in-class infrastructure in the areas of transport, education, water and electricity, and technology. Broad Objectives According to the plan, by 2020, crude oil is expected to account for only about 9 per cent of the GDP from a staggering 41 per cent in 1996. From less than 1 per cent in 1996, gas is

FOCUS INTERNATIONAL expected to grow to about 10 per cent. The industrial sector is also expected to increase its share in the pie from 7.5 per cent in 1996 to 29 per cent by 2020. The following sections outline the planned development in some of the main focus areas. Infrastructure Oman is at the cusp of a major churn in infrastructure to support its industrial aspirations. Prominent among the new projects is the development of the Sohar Industrial Port, which has already secured a USD1bn long-term lease agreement with VALE, the world’s largest iron-ore company. Another massive infrastructure project is underway at Al Duqm, which will include an airport, a crude export terminal, a refinery, a free trade zone, a port, dry dock, commercial and residential areas and a tourism development zone. The project is slated for completion in 2012. Yet another important chapter in Oman’s evolution was the setting up and expansion of Knowledge Oasis Muscat, which saw the entry of Oracle Corporation, Microsoft, Hewlett Packard and Motorola into the country. Gas Oman’s gas resources are larger than its oil resources; gas exports are not subject to quotas either. The industry rides on the Sultanate’s favourable location at the foot of the Arabian Sea, enhancing proximity to Far Eastern markets. To bank on these advantages, Oman has sanctioned huge investments in sea port infrastructure for LNG super tankers. A prime example is the USD700mn LNG train in Qalhat in the Sharqiya region.

accelerate private participation, attract FDI, and increase the ‘Omanisation’ ratio of the industry to 80 per cent. Dubai International Properties has already struck a deal to develop a AED3bn lifestyle resort, and Egypt’s Orascom is also bringing up three resorts for USD70mn. Challenges Privatisation and human resource development will be the key to absorbing Oman’s growing labour force in non-oil industries. While world bodies like the IMF have lauded the progress made by the Sultanate

Vision Oman 2020 is a watershed in Oman’s evolution into a competitive economy. in this direction, the challenge will be to contain inflation and simultaneously sustain growth through economic expansion. To the Sultanate’s credit, it has embraced prudent policy making and unfettered investments in economic development at a time when it is easy to be conservative, allowing it to be placed right alongside its GCC peers when it comes to post-recession economic recovery. It is this forwardlooking vision that makes Oman an inspiring story of our times. n

Tourism The tourism industry has also been identified as an important growth driver. Vision Oman 2020 seeks to establish Oman as a regional travel and tourism hub, increase tourism’s share in the GDP to at least 3 per cent,

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Future perfect

Qatar posted its eighth consecutive budgetary surplus in 2008, but the ‘petrodollar’ phenomenon is not all that defines the country. It wants to be a model state for the GCC, and it means business. HIs Excellency Hamad Bin Khalifa Al-Thani Emir of Qatar

ith the highest per capita GDP in the world (IMF), petroleum-rich Qatar is no stranger to the posh lifestyle common in Western European countries. It posted its eight consecutive budgetary surplus in 2008, but the ‘petrodollar’ phenomenon is not all that defines the country. Under the leadership of Emir Sheikh Hamad Bin Khalifa Al-Thani, Qatar has also made laudable progress in human development, moving up from 57th to 35th on the Human Development Index between 1997 and 2007. Emir Al-Thani has ruled Qatar since 1995. He has spearheaded the development of Qatar’s prized hydrocarbon resources and is also the guiding force behind ‘National Vision 2030’, a strategic framework for sustainable growth. A diplomat with a global outlook, he has been honoured the world over, with titles including the Order of Oman and the French Order of Grand Officer of the Legion d’Honneur. The Emir is assisted by Prime Minister His Excellency Sheikh Hamad Bin Jassim Bin Jabr Al-Thani. In an administrative career spanning almost 30 years, he has occupied several important positions including that of External Affairs Minister. The partly elected Advisory Council, the Planning Council

and the Municipal Council are the other important government offices in Qatar. Geography Qatar is situated in the Southern Arabian Gulf and is surrounded by Saudi Arabia, Bahrain, the United Arab Emirates and Iran. It is divided into 10 municipalities and has Doha as its capital. Population Qatar has a population of approximately 1,647,000, almost two-thirds of whom are expatriates working in the petrochemical industry. The sex ratio is skewed (more than three males to every female) by the high number of single working men present in the country. History Qatar was a British protectorate from 1916 to 1971. Oil was discovered in 1939, but the turning point for the Qatari economy and polity came in 1949 with oil exports and offshore payments. Following independence

Qatar’s socio-economic planning is predicated upon the spirit of collaboration between the state and civil society.

from the British, Qatar joined its Arab neighbours to form the GCC in 1981. In 1997, Qatar got its first stock exchange. Al Jazeera, the first statefunded satellite TV channel, was also launched in the same year. The 1998 election to the prestigious Chamber of Commerce and Industry marked Qatar’s first democratic experience. The election was momentous for Qatari women, who could now contest for and lead state offices. Administrative history was created with the new constitution of 2004, which promulgated the creation of an Advisory Council with legislative powers, the right to approve the budget and question cabinet ministers. Two-thirds of the Council is composed of directly elected members. Economy Qatar’s stellar growth story has quite literally been ‘fuelled’ by its enormous oil and gas riches. Qatar holds 15 billion barrels of oil reserves and more than 900tcf of proven gas reserves in the north field, which is the largest nonassociated gas reserve in the world. Oil production currently stands at 843,000b/d and is regulated by OPEC quotas. Two-thirds of Qatari oil goes to Japan. In natural gas production, Qatar is third in the world after Russia and

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FOCUS Iran. It aims to achieve a production of 45mt by 2010, which would catapult it to the top of the chart. The LNG complex at Ras Laffan has provided a huge impetus to Qatar’s economy and attracted investments from global giants like ExxonMobil, TotalFinaElf, Mitsui and Marubeni. Looking Beyond Petroleum Qatar recognises that a wealthy economy drawing exclusively on nonrenewable resources like oil and gas is an inherently flawed model, and that the state must be committed to alternative routes of development for the sake of the generations to come. This is the cornerstone of a new government philosophy that seeks to achieve broad-based growth touching all aspects of life in Qatar. As a reflection of this, the Qatar Science and Technology Park was established in 2004 to attract local and global IT investors. The successful hosting of the 2006 Asian Games in Doha helped the country showcase its spectacular infrastructural prowess. In the works is the Energy City in Lusail – Qatar’s largest township construction project so far. The tertiary sector received a further boost with the founding of the Education City in Doha, which hosts the Weill Cornell Medical College and the Carnegie Mellon University among others. In the telecom space, Vodafone became the second public mobile network and service license holder in Qatar, having started operations on 1 March 2009. The print media industry is also expanding with the addition of new English and Arabic titles. To top it all, the financial services industry has received a major fillip with the development of the Qatar Financial Center as a conduit for the trillion-dollar investment landscape in the GCC.

FOCUS INTERNATIONAL the National Vision is the prerogative of the General Secretariat for Development Planning, which is tasked with the formulation of a National Strategy. The framework is a response to the five main challenges facing the booming nation: • Modernisation along with heritage preservation to all-round • Commitment development of the current as well as future generations • Managed growth as opposed to uncontrolled expansion • Size, quality and development of the expatriate community • Economic growth along with social development and environmental management The National Vision stresses four key ideals for the achievement of these goals: • Human Development – development of all its people to enable them to sustain a prosperous society. • Social Development – development of a just and caring society based on high moral standards, and capable of playing a significant role in the global partnership for development. Development • Economic – development of a competitive and diversified economy capable of meeting the needs of, and securing a high standard of living for, all its people both for the present and for the future. • Environmental Development – management of the environment such that there is harmony between economic growth, social development and environmental protection. In the government’s own words, one of the key imperatives facing Qatar is the development of a “knowledge-based economy characterized by innovation; entrepreneurship; excellence in

Qatar’s National Vision 2030 serves as a framework for achieving balanced growth. education; a world-class infrastructural backbone; the efficient delivery of public services; and transparent and accountable government”. To sum up, Qatar’s National Vision is underpinned by the goal to secure “reasonable and sustained rates of economic growth” in order to ensure “a high standard of living for this generation and for future generations.” The government has set about to achieve this by wooing “(f )inancial and economic stability characterized by low inflation rates, sound financial policy and a secure and efficient financial system.” However, it is worth noting here that though economic growth is the centrepiece of Qatar’s roadmap to 2030, the rest of the world would do well to appreciate the Emirate’s commitment to other areas of life. It can be easy to lose sight of the social and environmental cudgels taken up by a country that is aspiring to be the richest in the world at tearaway speed, but Qatar clearly wants to spare itself such omissions from the international community. Thus, its emphasis on public-private partnerships and changes both driven by and oriented towards citizens is a key note in this new chapter of its national life. In a nutshell then, Qatar has adopted a framework based on responsible and inclusive growth. The country’s socioeconomic planning, as laid out in the National Vision, is predicated upon the spirit of collaboration between the state and civil society. The aim –to eventually establish Qatar as a model state within the GCC universe. n

National Vision 2030 Underpinning the hectic developments in all spheres of modern Qatari life is the National Vision 2030, which serves as a framework for the economy to achieve balanced growth as opposed to chaotic expansion. The execution of

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Solid foundations The infrastructure sector is seeing major activity and helping build a strong base for the GCC’s bright, bold future.

Amir HH Sabah Al-Ahmad Al-Jaber Al-Sabah Ruler of Kuwait

he Louvre in Abu Dhabi? Soon, this will not seem like a general knowledge test gone wrong. With the Emirate’s planned infrastructure expenditure, the French museum is set to open a branch in the capital of the UAE by — if work goes as per schedule — 2012. This will be the centrepiece of a cultural district that is geared to attract even more tourists and to diversify Abu Dhabi’s oil-dominated economy. Yet another development is the world’s first carbon-neutral and zerowaste city, Masdar City, currently in its first phase of construction in Abu Dhabi. Designed to be a centre for technology innovation and R&D, the city is attracting industry leaders and researchers, one of which is the International Renewable Agency (IRENA), which recently decided to locate its new global headquarters in Masdar City. The UAE is the leading builder of infrastructure development projects in the GCC, with almost US$105bn

There is no time like the present. This holds especially true in the GCC member states, where now is an excellent time to invest.

worth of projects planned and under construction. Hot on its heels is Saudi Arabia with US$17.9bn worth of ongoing projects and US$50.3bn worth of projects being planned for the future. Together, Qatar, Kuwait, Bahrain and Oman have infrastructure projects valuing approximately US$70bn planned and presently under construction. Committed focus There is no time like the present. This holds especially true in the GCC member states, where now is an excellent time to invest. With a planned collective spending of US$1.5trn on infrastructure and construction projects from 2009 to 2015, it certainly looks like the sun is shining on this region of the world. Despite the global slowdown, GCC governments are committed to mitigate the effects of this turmoil and to boost their economies through strategic infrastructure development. A drop in construction costs within the region, coupled with the advantage of substantial reserves and accumulated revenues from previous years when oil prices were at an all-time high, are contributing factors to this investment in infrastructure. A report by HC Brokerage found that countries such as Saudi Arabia have the “financial ability to support their spending programmes

and boost their economies through non-oil dependent revenues.” Thus, expenditure in the infrastructure sector is set to remain relatively intact. Apart from the UAE, which can boast of its art appeal and ecoconsciousness, other GCC member states are also flying high when it comes to infrastructure. Saudi Arabia, the largest construction sector in MENA, plans to build several new cities as economic hubs and to expand its petrochemical industry. The government is encouraging privatisation and public-private partnerships and plans to invest US$300bn in infrastructure between 2008 and 2010, with the focus being on expanding and modernising key sectors such as healthcare and education. An expected US$200bn will be the minimum investment for water and power projects to meet the demand forecast over the next 15 years. In October 2008, it was reported that at least 285 civil construction projects worth more than US$260bn were in progress or in the design phase in Saudi Arabia. No shortcuts in Qatar Saudi Arabia’s oil-rich neighbour, Qatar, is currently at its peak when it comes to construction. The country has set itself an ambitious target — zero dependence on oil by 2020 — and,

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The Louvre in Abu Dhabi

in order to achieve this, the Qatari government has set aside US$130bn to develop the state’s infrastructure and diversify its economy. According to a recent HC Brokerage report, the population in the GCC is expected to grow by 2 per cent in 2009, mainly driven by growth in Qatar, Abu Dhabi and Saudi Arabia, where thriving expansion plans are in progress. Incidentally, the UAE’s population growth is expected to come from Abu Dhabi; accordingly, the Abu Dhabi government is committed to invest upto US$168bn in capital expenditure until 2010, which will be the main driver to the growth in the UAE, said the HC report. The outlook for Qatar’s construction industry is positive, with the report stating that this is a relatively low-risk one and that the industry will grow by 14.6 per cent in 2009. One of the largest projects in Qatar is Diar’s Lusail Development, with a total cost of US$5.5bn.

GulfTalent.com, of the strength and resiliency of the Kingdom’s economy. Qatar followed Saudi Arabia with 13 per cent as of the first half of 2009, compared to 9 per cent during the similar period in 2008. Oman moved marginally from 2 per cent to 3 per cent in the same period under review. Although Abu Dhabi’s percentage share of job vacancies increased from 14 per cent to 23 per cent, overall, the UAE suffered the biggest decline in job opportunities in the Gulf. Bahrain and Kuwait also showed a slowdown in recruitment. According to GulfTalent.com’s findings, demand for infrastructure-related functions

Demand for infrastructure-related functions soared by 142 per cent, reflecting massive spending. soared by 142 per cent in the same time period, reflecting massive spending by GCC governments this year on transportation systems. With so many new marvels in the pipeline and the GCC states reaping the best use of resources available to them, the future looks rosy for the infrastructure industry in this region of the world. n

Abu Dhabi Performing Arts Centre

Opportunity chest As of the first half of 2009, reports of advertised job vacancies saw Saudi Arabia at the top of the list of Gulf countries — an indication, according to leading online recruitment portal

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Sky is the limit With its commitment to unique design and constant innovation, Reem Emirates Aluminum has revolutionised UAE’s skyline. Derek Bruce

Founder & CEO, Reem Emirates Aluminum

he first thing that comes to mind when one speaks of the United Arab Emirates are the stunning buildings that make up the skyline. Groundbreaking technology is used to erect some of the most visually captivating buildings of the modern era. And Reem Emirates Aluminum (REA) is the front runner when it comes to servicing the up-and-coming demand in architectural finishes and metal works in the islands. Take the Barwa Commercial Avenue project in Doha, Qatar, spanning 6.8km. The complex contains shops and a retail area on the ground floor and the mezzanine level with residential and office areas on the first and second floors. REA has been awarded the curtain wall contract for Buildings Type 1 and 2, covering more than 3km of the whole development at an impressive contract amount

of QAR168.5m. The curtain wall is made of Schüco Mullion/stick system with double glazing, composite metal claddings, secondary structural steel structure and stainless steel entrances and is due for completion in June 2011. “When I started this business, many people told me that I was too ambitious and that I will never achieve all of what I wanted. It’s now good to hear what these same people are saying. So am not going to say anything right now about what will happen 3 years from now. Come back after 3 years and you will see for yourself,” says founder and CEO Mr. Derek Bruce. The USP of REA’s work is their unique design. Its team is made up of experts gathered from around the world, with no less than 25 years experience in working with some of the largest curtain wall companies in Australia, Europe, South East Asia and the Middle East. REA prides itself on its ability to provide design solutions from scratch, without using predesigned proprietary systems: each project is designed as a tailor-made solution without compromising the architects initial intent. All designs are created by Mr. Bruce himself. Their office itself is a remarkable piece of work.

“The inspiration of this building is significant with regards to how we approach the market. Abu Dhabi is a coastal location, so we wanted to have a building which not only represents where we stay, but also our theme. The theme of water is that you can’t stop it, and it takes any shape – waves for instance are also unstoppable. The top of the building was therefore built in a curvy shape representing a wave. The building itself is round, representing the competition. So the shape of the building represents our theme, and we are the strongest company right now in the whole of the UAE,” Mr. Bruce says. “The most important aspect of our work is that we offer something new and completely unique to the market. As part of our new available technology, we integrate solar power technology into our panels, which means we also provide electricity to our buildings we construct. Many companies undertake single aspects of our work, but very few of them provide all of them together as one piece integrated into each other.” “We have developed proven, costeffective, energy saving technologies that will become the norm across forward-thinking places like Abu Dhabi which are already implementing sustainability guidelines,” says the confident CEO. Fuelling his confidence are REA’s patented technologies which have been validated internationally.

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FOCUS Talking about its purpose-built factory, Mr. Bruce says that it is the largest in the UAE and is conceived to provide custom-made architectural cladding elements with a particular emphasis on the designing and manufacturing of unitised curtain wall panels. With the opening of this new factory, REA is to be the largest high-tech façade designer and fabricator of architectural curtain walls and cladding in the UAE. The factory will be capable of producing 60,000sq m of curtain wall panels every month. REA’s strength lies in the fact that it does not just create ideas. It has an architect’s vision as well, much like a fashion design house. “Our basic activity is to take an architect’s intent and expression of how he wants a building to look like and provide it with an external skin. In effect, we are tailors that put together the external outfit for a building,” the CEO adds. “Every building has different expressional demands and needs. Before we start our projects, we put into perspective our design through the use of a 3D machine that produces a mock structure of how the building will look like when completed.” REA’s list of projects is truly remarkable, from the first one – the Reem Island – to the ambitious Etihad Towers. Like all first projects, Bruce

FOCUS INTERNATIONAL holds the Reem Islands closest to his heart. “The first project is usually the most memorable. The AED300m Reem Island project, where we did 16 buildings, was our first project. We were new at the time and did not have a system that we had tested and fabricated. So we started everything from scratch and yet successfully completed the project,” Mr. Bruce says. Etihad Towers, a project managed by the Jumeirah Group, will feature five towers in excess of 300m and will include a 60-storey luxury hotel. But REA is not resting on its past laurels. In their effort to constantly innovate, the REA team is churning out ways to make their designs more efficient keeping in mind ecology and natural energy resources. With a firm grasp in the UAE markets, REA is now looking to expand into other countries. “Attracting international clients is part of our strategy. Our actual plan is to set up one or two super factories around the world that can ship products to our sub offices all around the world. Within the GCC, we intend to go into Saudi, Jordan, Libya, and Qatar, as well as other countries like Turkey, Bulgaria, India, and China”, Mr. Bruce adds. China has emerged as a huge market for REA. With its eye set on modernising the landscape, Chinese

authorities have been commissioning out-of-the-ordinary buildings. “A lot of Chinese companies were gearing to supply products from China to the rest of the world, but when the US crashed, they were affected…we have work here, and because of that, we form an integrated alliance useful for all of us”, Mr. Bruce sounds buoyant. And REA has made good profit due to this strategy of alliances. “Our factory is completely full with production, there are many opportunities available for us as many companies have closed due to the recession and we are getting the extra business. We are recruiting an extra 100 workers and introducing a night shift. We have covered last year’s turnover in the first 4 months of this year, our target is 150 per cent more than last year’s actuals and we are in line with that with our growth this year.” Extending his supervision over all aspects ranging from machinery procurement to design and architecture, the all-rounder Mr. Bruce believes in leading by example. And there is no doubt whatsoever that with him at the helm, Reem Emirates Aluminum will fabricate an attractive facade for the region. n

The theme of water is that you can’t stop it, and it takes any shape.

The Reem Emirates Aluminum headquarters in Abu Dhabi

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changing face Largely responsible for the Abu Dhabi you see today, Tamouh, the pioneering real estate developer of the city, believes that with its expertise and resources, it can achieve anything it dreams of.

gnore the media reports of Baghdad. Overlook the Palestinian and Israeli hostility. Keep aside, for a while, the negative reports the media feeds you daily. Focus on the positive growth that the Middle East has displayed in the last few years. Abu Dhabi, one of the largest cities of the United Arab Emirates is growing, thanks to the pioneering real estate developer, Tamouh. Started in 2007 as a corporate entity at Cityscape Abu Dhabi, Tamouh has developed some key projects, which today define Abu Dhabi. These include Marina Square, the City of Lights, Fantasy Island, Meena Plaza and Towers, and Royal group Headquarters. Involved in a number of other projects, which are likely to see completion in five years, Tamouh prides itself in always keeping to deadlines and yet building an infrastructure of which the citizens will be proud. Joe Ong, CEO, Tamouh, explains the company’s expansion plans to enable them to offer a wider range of real estate services, “The launch of the two new subsidiaries is a significant

step towards business expansion and is part of our long-term growth strategy in the Emirate of Abu Dhabi.” The two new wings are ThreeSixty Estates Management, to provide sales, marketing, property and facilities’ management, and Paragon Malls established as a retail mall operator. Since Tamouh deals with wholesalers and not retailers, the company is relieved that it has been largely unaffected by the recession. Its operations span India, Libya and Russia and with the support of its partners, the government and local private investors, Tamouh is confident of changing the face of Abu Dhabi in a matter of a few years. Having achieved far more than expected since they started, Tamouh is especially proud of Marina Square. A complex of 14 blocks of residential buildings and 3,440 apartment units, when fully occupied, Marina Square

will accommodate approximately 8000-10,000 residents, a 60,000 sq m shopping mall and 500,000 sq ft of office space. “We are very excited about Marina Square, as it is being delivered on time, as promised, by the end of this year. We expect residents to move in by the first quarter of next year; with the current market situation, we can do nothing better than to show people we are living up to our promises. Marina Square is not only a project we, at Tamouh, are proud of but Abu Dhabi is proud of as well, as it serves the entire city,” shares Mr. Ong. Abu Dhabi is a transformed city today and, as opposed to the world’s perception, is one of the safest and most lucrative places to be in. Tamouh is proud to have established itself as one of the leading developers which have played an important role in transforming Abu Dhabi. n

Tamouh is very excited about Marina Square as it is being delivered on time, as promised.

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Building blocks

In less than two years, Akwaan Properties has built an impressive portfolio, developed a strong network in the real estate market and is ready to take the infrastructure world by storm. Mohammed Saleh Alkhalil

CEO and Managing Director, Akwaan Properties

ridging the gap between construction companies and the businesses that use what these companies build, Akwaan Properties was started as a closed stock real estate company in the Kingdom of Saudi Arabia in mid-2007. With the objective to develop land, residential and commercial projects, Akwaan has a clear mission – to be one of the largest real estate companies in Saudi Arabia, Middle East and North Africa. Today’s barren and undeveloped land is tomorrow’s industrial parks, shopping malls or residential complexes, thanks to Akwaan’s determination and expertise.

The brains behind the bricks Mr. Mohammed Saleh Alkhalil, CEO and Managing Director, Akwaan Properties, is a name to reckon with in the real estate industry on the global arena. His experience is vast — with over 20 years in investment and development real estate, strategic planning, contracts management and being regional and international coordinators for various organizations, Mr. Alkhalil knows the industry like no one else. As the Founder and Chairman of ERA Middle East, he is a part of one of the largest real estate services’ networks in the world. Further, as the Deputy President of the National Real

The company can assist foreign companies enter the Saudi market. Estate Committee in the Chambers of Commerce and Industry Council in the KSA, his experience and knowledge of the industry is unparalleled. Mr. Alkhalil is clear on what he and his team at Akwaan is offering his clients — a wide portfolio of products and investments which have the highest chances of yielding profits. In less than two years of establishment, Akwaan has succeeded in surpassing industry standards with its meticulous research and an active risk management programme. “Akwaan is stronger than its competitors in a number of aspects, namely joint ventures and alliances, focused market expansion strategy and land holdings, among other things,” says a confident Mr. Alkhalil. Feathers in the cap After successfully marketing, designing and launching its first significant project in the Riyadh industrial estate, Bilda Building and Design City (Gross Building Area of 84,000 sq m), Akwaan has taken upon itself the task to build six other Bilda Building and Design Cities in the other major hubs of Saudi Arabia by 2014. The master planning for the Business Park covering 40,000

sq m worth US$130mn is complete, and Akwaan still has much more on its plate. After finalising the feasibility study and finding strategic partners and locations for the projects, shopping centres, lifestyle and community centres, neighborhood malls, mixed use developments in addition residential compounds and open air shopping destinations are all on the cards in the next few years. Beyond barriers According to Mr. Alkhalil, not only is Akwaan a strategic player in various economical sectors in the Saudi market, the company also has alliances with master planning consultants in the UK, US and Germany. “We can also assist foreign companies (from Russia, South East Asia and other parts of the world) enter the Saudi market and provide them with high premium return projects. During these times of financial crises, Akwaan will play on its strengths of acquiring a huge land bank geographic and product diversity, and human capital assets amongst others to carve a niche for itself in the industry.” With a vision to grow into a market leader by bringing in its expertise, research facilities and networks, Akwaan Properties is well on its way to becoming the real estate giant on which the world can depend. n

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Surging ahead

Bahrain Bay, a re-development project on reclaimed land, has weathered the recent economic challenges, emerging on track and closer to completion. Bob Vincent

CEO, Bahrain Bay

ahrain Bay, a project by Arcapita, an international investment bank, will be a teeming city built around the Manama waterfront. A mix of retail, commercial and residential properties, this project has made significant progress constructionwise, notwithstanding the global economic slowdown. Roadblocks in the property development sector may have resulted in extension of timelines and performance criteria but the commitment and interest in the project has not waned in the least bit. Today, there are 16 third party developers (TPDs) on board, such as CapitaLand, Al Jomaih Investments, Kooheji Group, and Khaleej Capita An aerial view of Bahrain Bay’s latest developments

(Remza). “The TPDs come from all around the world including the Middle East, Asia, and Europe,” says Bob Vincent, CEO, Bahrain Bay, who has more than 25 years experience in development projects worldwide.

A unique concept The essence of Bahrain Bay is to blend the most precious natural resource — water — with urban development. Mr. Vincent says, “It will see the best in architecture and design to create a series of vibrant neighbourhoods, forming a community that will combine the tranquility of a waterfront location and urban vitality.” The USP of this project lies in its design, which is as imaginative as it is functional. The central island , which is connected by two bridges , is ensconced in a crescent-shaped landmass that houses the residential as well as commercial structures. “Committed to establishing and maintaining a new urban standard, Bahrain Bay has created and focuses on four foundations that define our philosophy; Scale and Aesthetics, Social Equity, Community Fabric and Tomorrow’s Environment. As the development evolves further, these foundations will guide us to realize the high standards we have set for ourselves,” explains Mr. Vincent, who has also been a strategic advisor to Macquarie Bank Property Investment Banking.

Making strides Recently, the trough structure to the Manama High Street was completed, which also heralds the beginning of

Bahrain Bay will see the best in architecture and design. the installation of the infrastructure works by Bahrain Bay Development and Bahrain Bay Utilities. Another landmark is the near completion of the ramp and tunnel, which will provide access from Raffles City’s underground parking. Mr. Vincent expects the completion of the infrastructure and third party work, and also the sale of the remaining pockets of land to happen in three to five years. “Bahrain Bay has attracted global investors to the country, created jobs and, once completed, will help put Bahrain on the map as a ‘one to visit’ tourist destination,” he says. With multiple residential areas, impressive promenades, a yacht club, Raffles City Bahrain – an area solely housing high rise apartments, penthouses, five-star serviced residences and landscaped villas – and the iconic Four Seasons Hotel, Bahrain Bay, which will also serve the country’s economy, will surely find a place on every tourist’s must-see list. n

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Serving Qatar

Keeping in mind local traditions, culture and architecture, Qatari Diar aims to build a beautiful Qatar which would be full of sustainable commercial, cultural and social communities for the citizens. Dr. Hassan Al Fadala

Deputy CEO Operations, Qatari Diar

country is often judged by the quality of its infrastructure, especially by the rest of the world. Qatari Diar Real Estate Investment Company, owned by the state-controlled Qatar Investment Authority, was started in 2004 to help build a beautiful environment and sustainable communities in Qatar that would capture the world’s attention. After years in the education sector, Dr. Hassan Al Fadala took over as deputy CEO Operations Qatari Diar Real Estate Investment Company, in the year 2008. “Our mission is to promote a better quality of life, by creating distinguished legacy developments at par with international standards. Our company, in a unique position as an arm of the government, has attracted blue-chip international partners to our projects,” says the DCEO. One of Qatari Diar’s biggest milestones is the groundbreaking Lusail project, by which the company and the Qatari government have effectively served the people. This project includes a series of sustainable developments across the Middle East and Africa, and overseas in the UK,

France and Cuba. Qatari Diar handled all the aspects to be kept in mind for real estate development including facilitation of building permits, free design advice, sessions with architects, etc. Recognising the importance of partnership in the industry to which Qatari Diar belongs, the company is highly proud of the organisations with which they work. Selection of partners depends on the value offerings and the company’s alignment with Qatari Diar’s vision and long-term aspirations. “When you want to be the best, you choose only the best to work alongside your company. Qatari Diar’s commercial partners are ‘best-in-class’

category leaders, such as architects Lord Norman Foster Associates, Michael Graves & Associates and Murphy Jahn Inc, international engineering firm Arup, and design planning firm Spillis Candela,” shares Dr. Hassan. Involved in around 40 projects across the world, Qatari Diar has its hands full with a high-profile clientele spanning across Oman, Egypt, Yemen, Morocco and in various parts of Europe. Undeterred by the economic downturn the world is facing, Qatari Diar is determined to change the face of the country to reflect the past, the present and the bright future of this growing kingdom. n

Lusail Commercial Boulevard

When you want to be the best, you choose only the best to work alongside your company.

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greener pastures The Green Crescent Insurance Company aims to change the face of the health care insurance sector with its flexible services and Mr Giacomo Bernadelli global partnerships. Managing Director, Inmotion Carl Sardegna

CEO, Green Crescent Insurance Company

wo of the largest emirates of the UAE, Abu Dhabi and Dubai are seeing major reforms in the health care sector. The result of which is the recent law that makes it mandatory for employers to provide health insurance to expatriate employees and their dependants. This comes as a blessing to expatriates, as earlier, those in the low-income bracket could not avail of good health care facilities. Here’s where the Green Crescent Insurance Company (GCIC) steps in to provide feasible but high-quality health insurance cover. It is the 66th company to be listed on the Abu Dhabi stock exchange and the IPO, which opened in June has registered a subscription of nearly 70 per cent. Having started operations in November 2008, the company is driven by the mission ‘Your health first’ and therefore provides world-class health care at affordable prices. With the aim of changing people’s perception about health insurance, the company plans to initiate campaigns that educate citizens about the importance of health. Global reach Normally, it has been observed that locals go to Europe and Southeast Asia for treatment and medication while expatriates head to their native country. Hence, GCIC has tied up with various health care providers to ensure excellent

service worldwide. “We are working with three groups that provide us with the network that is necessary. We work with NAS who are well-established in the UAE and have a very good reputation within the marketplace. In the US we have access to the Aetna network and HTH Worldwide, and between the three, we cover 180 countries,” says Carl Sardegna, CEO, Green Crescent Insurance Company. The company believes in making the process as simple and convenient for the customer as possible. “We have one card that people can use all over the world. From the customer’s point of view this is great, as it reduces all the hassle and patients don’t have to worry about it not being recognised when crossing the border. We are totally flexible; our whole product is based on sitting down with the client to discuss their needs benefit by benefit,” explains Sardegna who has also been the head of Bluecross in Maryland (USA), a health insurance company that insured approximately 60 million people. GCIC allows customers to make changes to their insurance plans to suit individual needs. a healthier future Sardegna feels that it is the responsibility of the company to make citizens aware of the importance of a healthy lifestyle and also educate them

The company is driven by the mission ‘Your health first’. about methods of treatment. He says, “Two-thirds of healthcare costs can be attributed to chronic illnesses such as diabetes and hypertension. The big issue is compliance; we know how to diagnose and the appropriate course of treatment.” He believes that this is a win-win situation for all. “The member wins, the client wins because he has a healthy employee and they lower their costs, and the health insurance company wins because they also lower their costs,” he explains. Speaking of winning, the company has also had an important victory in the short span of its existence. It is close to achieving its targeted revenue of AED100mn, as 30 per cent of the goal has already been achieved within the first two months of the year itself. So, what is the secret behind these impressive figures? “Persistence is critical, and a management philosophy that gives responsibilty and authority to others. I like to empower my staff. You have to allow people to give their input, it allows people to progress,” says Sardegna. With advanced technology, wide reach and health awareness campaigns in place, GCIC is set to make its mark. n

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Express delivery

As 2009 marks the 40th anniversary of DHL, Mark Benton, Country Manager, DHL Express Bahrain talks about the company’s achievements and shares his vision for the future. Mark Benton

Country Manager, DHL Express Bahrain

ounded in San Francisco in 1969 by three entrepreneurs — Adrian Dalsey, Larry Hillblom and Robert Lynn — DHL has become today the global market leader in international express and logistics. The company has had a strong presence in Bahrain for over 30 years, offering multimodal transport and logistic solutions, with the core being International Express Time Definite services. Despite the economic slowdown, when it comes to Bahrain, DHL plans to stay put. Stating that the company is “committed to Bahrain”, Country Manager Mark Benton says, “We have no intention of leaving; Bahrain offers unique benefits as a base for any business operating in MENA.” The reasons for this loyalty to the Kingdom are manifold. “Bahrain has first class business and physical infrastructure located in a geographically strategic position. It is well serviced by the global business community. Add to that the local culture and Bahraini people, and it is a great place not only for business but (also) to live,” Mr. Benton elaborates.

Strong foundations Mr. Benton would know. On leaving school, the New Zealander spent ten years in the British Army, before entering the Transport and Logistics

Recovery in MENA will be more rapid than in some other areas.

industry in his home country. “I joined DHL Express in New Zealand in 2000 and after a few years, moved to DHL Express Saudi Arabia Operations, then on to Country Manager Oman,” he narrates. DHL was the first Express Company in the Middle East and Bahrain and its investment in the Kingdom is a testament to its commitment. Benton talks of the multimillion-dollar investment in its Middle East hub at Bahrain Airport. “This is ongoing and continues to develop today,” he says. He is justifiably proud that the company has received recognition awards from Bahrain Government and internationally recognized institutions as an “Employer of Choice”. Recently, DHL Express Bahrain launched DHL Easyshop. “This is a web-based service that enables customers purchasing goods online to have their shipments sent to them,” Mr. Benton explains. Bahrain was the Global pilot and development site for the ‘shop globally, delivered locally’ service. Committed to the cause Mr. Benton’s optimism extends beyond Bahrain. “While no one has escaped the current economic conditions,

MENA still remains an area of relative opportunity. I think recovery in MENA will be more rapid than in some other areas,” he elucidates. “Strategically, we are working on developing further links between MENA, Europe and the Americas. The recent launch of our Boeing 777 freighter from Europe to Bahrain and to Asia, plus a 747 freighter connecting to the USA is part of this.” Fast forward The company also plans to expand into China and India. In a dynamic world, Benton is open to change. “Any process that assists in crossing borders is welcomed. A GCC monetary union will help this and is an important step towards an economic union,” he opines. Over the next three to five years, the company’s focus is on “maintaining and expanding our market leading position in MENA, being the preferred Express and Logistic partner.” And Mr. Benton need not lose sleep over this. After all, with DHL’s core values revolving around making customers successful and simplifying their lives, the company is certain to surge ahead. “Internally, we are focused on ‘Respect and Results’, with high levels of employee involvement, openness and responsibility,” he says. “Look after your customers, look after your people; and they will look after you.” n

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Health capsule

Medicine is no longer a bitter pill to swallow, thanks to Dubai Healthcare City providing every possible medical service of the highest quality to the Middle East and surrounding regions. Dr. Ayesha Mohamed Abdullah

Senior Vice President, DHCC

ealth care is a universal concern, not confined to one particular caste, nationality or social status. If your well-being is a priority, the right place to turn to is Dubai Healthcare City (DHCC). Located in Burj Dubai, in the heart of the city, this highly regulated institution, recipient of the Dubai Quality Award in April 2009, provides modern medical services of supreme quality to the UAE, the whole of the Middle East, and surrounding regions. According to Dr Ayesha Mohamed Abdullah, Senior Vice President, DHCC, the aim of DHCC is “to create an integrated centre of excellence for health care, wellness, education and research.” Overseas appeal DHCC’s fame is not limited to the Gulf region; abroad, it has found favour with major players in the global health care sector. It has partnered with the Dubai Bone & Joint Center (DBAJ) and Boston University (BU) in an initiative to provide the region with diverse health care practices. Apart from this, the prestigious Harvard Medical International (HMI) is a key strategic collaborator, working with DHCC to develop the latter’s capabilities and service offerings in the areas of medical education, health care delivery, and research.

These links have greatly benefited DHCC, enabling it to meet quality standards in health care. Dr. Abdullah explains, “As one of the leading providers of health care and medical education in the region, DHCC is always keeping abreast of international best practices and working toward implementing these practices in the UAE.” Winning streak Not for naught are these efforts. Earlier this year, DHCC received the Dubai Quality Award, which recognizes organizations that are role models in business performance. “Achieving best practice has always been at the forefront of our strategy — both internally and with our customers and stakeholders. To receive recognition from the DQA for our efforts is a

Dr. Abdullah receiving the prestigious Dubai Quality Award

major accomplishment for everyone that is part of DHCC. I look forward to DHCC gaining more laurels in the years to come,” Dr Abdullah said on winning the award. DHCC lays great emphasis on participative health, with several public campaigns highlighting diabetes, smoking, and breast cancer — the last winning several awards including the Silver Lion in Cannes. “We maintain a strong commitment to improving the quality of health care

DHCC’s fame is not limited to the Gulf. and public engagement in the whole region through collaborating with our global, regional and local health care partners,” states Dr. Abdullah. With over 80 clinics and 1,400 professionals offering services that include eye and dental care, obstetrics, orthopaedics, plastic surgery and urology, as well as future projects that promise to provide a lifeline to the global medical fraternity, DHCC certainly seems to be the ideal one-stop health shop. For more, log on to http://www.dhcc.ae. n

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Holistic health

In a bid to provide first class health care to its citizens, the Government of Abu Dhabi created Seha, which has held onto its promise of delivering international standards locally and plans to continue doing so. Carl V. Stanifer

CEO, Seha Abu Dhabi Health Service Co.

he Abu Dhabi Health Services Company (ADHSC) was born on December 29th, 2007 under Emiri Decree No. (10) of 2007 and is owned by the Government of Abu Dhabi. Its corporate name is Seha, which means health in Arabic. As part of its reform initiatives and in keeping with the vision of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, the government wanted to break up hospitals, clinics, doctors and provisional health care from the regulations. Doing so meant improved quality, financial accountability, selfsufficiency and also greater patient satisfaction. “Our mandate was to create that separation and then to improve the quality, the patient satisfaction, financial accountability, to become self-sufficient financially. So it was a three-pronged strategy from the Government’s standpoint: to separate payers, regulators, and provisions and to create a health system that could sustain itself, eventually financially, and at the same time, improve the quality and patient satisfaction, and clinical health care,” explains Carl V. Stanifer, CEO, Seha Abu Dhabi Health Service Co. Working with the best Seha is a public joint stock company whose vision is to provide superior

quality health care through an array of world-class providers. Currently holding 12 hospital facilities 2,644 licensed beds, and more than 40 Ambulatory and Primary Healthcare Clinics, Seha is undoubtedly one of the largest employers in the Middle East with more than 15,500 doctors, nurses and other clinical staff and administration. And that’s not all; Seha has some impressive names on its list of partnerships too that include Johns Hopkins Medicine, Cleveland Clinic, Bumrungrad International, New England Center for Children, Vamed, and Vienna Medical University. “We are now beginning to look at certain aspects of our clinical offering, and partnering with the expertise that we will get through management contracting,

Trust is of utmost importance in health care and Seha recognises this. and also through entrepreneurial joint ventures. We are looking to our existing partners first, the ones that are providing us with managerial services, and also looking at other places whilst keeping in mind others that we can begin to trust in the business,” says Mr. Stanifer. A good example of this is their dialysis service, which is in great demand. “We’re partnering with

another company in an entrepreneurial sort of joint venture mode to carve all the dialysis services away from where they are now, scattered throughout all of our hospitals, into one capital that’s got a really direct focus on delivering dialysis care,” explains Mr. Stanifer. Other than this, they have also initiated an organ transplant program at Sheikh Khalifa Medical City. Building trust In the health care sector, trust is of utmost importance and Seha recognises this. Mr. Stanifer believes that in order to establish trust, it is imperative to make visible improvements. He feels that one way of doing this is to get their hospitals certified by the Joint Commission on Accreditation of Hospitals so as to give consumers a guarantee of quality. Another important step towards building customer confidence is to increase the number of Western Board Certified doctors, specialists and consultants. “But again you have to back that up with real service. So it’s a combination of improving the product and then getting validation for that. You still have to constantly ask your patients, ‘Are we doing a good job? If not, why?’ We do this through third party patient satisfaction surveys and continue to sample our customer reaction to our products,” adds Mr. Stanifer. n

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Gulf course The world has known the Gulf as the Petrodollar Giant, and the Giant is now finding new reasons to roar in the global marketplace.

including construction, tourism and information technology. Such a paradigm shift requires a rewiring of a nation’s economic life, its foreign relations, and even its social structures, often through partnership. This is where the Gulf Cooperation Council (GCC) assumes significance. Founded in 1981, the GCC today ranks among the most powerful international conglomerates in the world. Together, its six members with a shared history and heritage are crafting a new vision for the future driven by economic reforms and broad-based growth. Optimism runs high in the GCC, deriving support from all economic indicators – be it GDPs, taxation, sovereign ratings, project outlays, or the performance of equity markets. Here is a brief overview of what makes the GCC a shining jewel of the GEMs (Global Emerging Markets) universe.

n the slippery arena of international trade, the Gulf has enjoyed a position of unmatched strength as the custodian of the world’s oil and gas. Led by Saudi Arabia in oil and Qatar in natural gas, the region – steeped in unique cultural traditions that are still sacrosanct – has been on the fast track to progress. The oil and gas industry has benefited from the presence of an eclectic mix of expatriates from all over the world, introducing it to the very best in modern technology. Most significantly, petroleum demand is set to skyrocket again led by energy guzzlers India and China, more than offsetting the loss in recession-hit developed countries. Add to these their commitment towards economic diversification, and it is little wonder that the Gulf countries today are among the fastest growing in the world. Gulf Cooperation Council – joining forces Amidst this breathless growth, however, things are changing with alarming certainty. As hydrocarbon resources dry out, economies find themselves compelled to woo diversity. Policy makers need to make provisions for other, sustainable, industries,

GDP and foreign assets The IMF predicts the Gulf ’s GDP to reach US$1,210.112bn at the end of 2009 from US$1,022.62bn in 2007. As the proverbial icing on the cake, Qatar is set to upstage Luxembourg as the country with the highest per capita GDP by next year. Also, according to

a McKinsey report, Qatar and Kuwait will increase their foreign assets by a significant 18 and 17 per cent, respectively, justifying their claim to McKinsey’s ‘power brokers of the future’ tag. McKinsey also took note of some of the new channels of growth adopted by governments in the region. These include Saudi Arabia’s plans to build several new Economic Cities and Abu Dhabi’s emphasis on building new cultural institutions, such as a branch of the famed Louvre Museum, as well as its aim to construct the world’s first carbon-neutral city, Masdar. Masdar is also the headquarters of the International Renewable Energy Agency (IRENA). Tax regime Traditionally, one of the main attractions of the Gulf as an investment destination has been its benign tax regime. Thanks again to the opulent oil and gas industry, governments in the region have been far less reliant on tax income than some of their peers around the world. Please refer to the table on the next page for details on the tax rates applicable in each country.

GCC member states – hard facts Country

Area

Population

Currency

GDP

Per apita GDP

Bahrain

741 sq km

727,785

Bahraini Dinar (= US$0.37)

$26.7bn

US$37,200

Kuwait

17,818 sq km

2,691,158

Kuwaiti Dinar (= US$0.27)

US$149.1bn

US$57,400

Oman

309,500 sq km

3,418,085

Omani Rial (= US$0.38)

US$67bn

US$20,200

Qatar

11,586 sq km

1,647,000

Qatari Rial (= US$3.64)

US$85.35bn

US$103,500

2,149,690 sq km

28,686,633

Saudi Riyal (= US$3.75)

US$582.8bn

US$20,700

83,600 sq km

4,798,491

Emirati Dirham (= US$3.67)

US$270bn

US$40,000

Saudi Arabia UAE

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Country

Corporate income tax rate

Kuwait

15% and 0% tax on stock market investment

Oman

0% - 7.5%

Bahrain

46%

Qatar

5% - 35%

Saudi Arabia

25% - 45%

UAE

10% - 50%

Sovereign ratings Since 1996, no GCC country has seen a downgrade in its sovereign rating by Standard & Poor’s. In fact, the region has been rewarded with 14 upgrades and an average longterm foreign currency credit rating of ‘A+’. The outlook remains stable for all sovereigns. Abu Dhabi leads the region with a foreign currency rating of ‘AA/ Stable/A-1+’, followed by Saudi Arabia at AA-/Stable/A-1+. Obviously, this track record comes as a huge boost to the region’s efforts to create an environment of trust among those who hold the strings of the world’s biggest purses. Equity markets Following a period of severe corrections in 2005-06, the traditionally volatile GCC equity markets have gradually established themselves as sought-after investment targets. The first set of international investors in the Gulf arrived in early-2007, lured by poor sentiment, low valuations, and the prospect of being the first to tap these relatively virgin markets.Even in the worst days of the 2005-06 bust, the Gulf retained its underlying appeal, thanks to its low correlation with the fluctuating fortunes of international equity markets. Added to this, restrictions on foreign investments and the high volume of domestic retail trade insulated the Gulf from the currents affecting the international liquidity scene. These factors gave the region a definite edge over other GEMs, including the BRIC markets, though the correlation quotient of markets like Dubai have inevitably gone up in the recent past. As a result, the GCC markets registered sizeable losses in the aftermath of the global meltdown.

However, with a 35% rebound in US equity markets from their March lows, investors are again scouting for ‘riskier’ assets that offer value outside the US. The UAE markets remain the hotspot for foreign investments, credit to their extensive brokerage coverage and outward-looking marketing strategy. The Dubai and Abu Dhabi stock exchanges scored a major point when they participated in road shows in the UK and the US to liaise with foreign institutional investors. In another key development, HSBC was awarded a share license to trade directly on the Dubai and Abu Dhabi stock exchanges, becoming the first global investment bank to earn this distinction. Another heartening trend has emerged in the area of financial partnerships, with many local majors from a wide array of industrial sectors entering into joint ventures with foreign entities. Experts note that this will provide a a shot in the arm for the region’s credibility by triggering better corporate practices, including more transparent disclosures.

Project outlay The GCC countries have announced projects worth USD1.86trn in construction, industry, oil & gas, petrochemicals, power and water etc. The UAE leads with declared projects worth USD848bn, followed by USD460bn by Saudi Arabia and USD269bn by Kuwait. Qatar, Oman, and Bahrain have announced projects to the tune of USD190bn, USD64bn and USD33.5bn, respectively. Changing gears Far from resting on its strong economic foundation, the GCC countries are scripting a remarkable agenda of reforms with an eye on the future. As we have discussed in the country sections of this publication, most countries in the region have adopted ‘national visions’ focusing on longterm growth. While world bodies like the IMF have praised the efforts made by the governments towards economic diversification, containing inflation and ensuring socially inclusive growth would be challenges to reckon with. Of course, it helps that while the world watched in awe, these countries engineered an infrastructure and investment revolution, thanks to years of saved petrodollars and futuristic policies. Their next target – ensuring that all roads lead global investors and technocrats to the ‘Gulf course’. n

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UNITED FRONT The IMF projects the GCC’s gross domestic product to exceed US$1,210bn in 2009. In a world where the comfort of numbers is often the key determinant of progress, a monetary union between the GCC’s member states thus needs no hard-selling.

The UAE hoped to have Abu Dhabi as the headquarters of the regional central bank

“I

“It was the best of times, it was the worst of times.” – Charles Dickens in ‘A Tale of Two Cities’ Perhaps the richest paradox of our times lies in the way fierce competition for economic gains has coexisted with the propensity to make a collective fist of it. We need only look at the proliferation of high-profile economic groups to make sense of this trend – the European Union (EU), the G8 and the G20 to name just a few. Individually, each member of these groups is party to the race for a sustainable future for their own peoples. Geopolitical pressures have taken over from tectonic ones in shaping the face of our planet, and the

epicenter of most of these pressures lies in every nation’s mandate to amass more scant resources and investment capital for a sustainable future. Potent ground for conflict, one would imagine. However, thankfully, most of the stakeholders in this race seem to have realized that the world has had enough. Competition based

Convergence is the new guiding light of international trade. on cannibal foreign trade policies is simply not an option. In a world where borders are fast becoming fluid, it is another ‘C’ word – convergence

– that has captured the imagination of economies as diverse as Western Europe and the Middle East. Convergence in this context is not the antithesis of competition; it is simply the more sensible face of things. It is a worldview that respects and values interdependence while simultaneously preparing a nation to be self-reliant. The proponents of this worldview argue that economic collaboration can help harness far greater benefits than isolationism. For evidence, they point at the single market regime in the EU and its unlocking effect on human and financial capital. This act of union between some of the world’s most affluent countries has created a whole new territory on the globe as it were,

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FOCUS marked by a fascinating exchange of goods, services and intellect. Thus, though its superstructure is based on a bond, what the union has in effect created is a newfangled sense of freedom, and all the member countries are richer for it. Consider this as evidence: notwithstanding initial pitfalls, the euro has emerged from the recent economic crisis with a reputation stronger than the dollar’s. Taking its cues from the success of and lessons delivered by such cooperative efforts, another traditionally rich region has started making strides towards the formation

Trade levels between GCC countries is on the rise. of a monetary union by 2010. All eyes are on the member states of the Gulf Cooperation Council as they prepare to reshape one of the world’s most strategic cogs – the hydrocarbon haven of the Middle East. Why unite The Gulf states have aspired to create a robust, unified trading bloc along the

FOCUS INTERNATIONAL lines of the EU as part of a concerted response to globalisation. Currently, the governments and central banks of Saudi Arabia, Bahrain, Qatar and Kuwait have come on board and are deliberating over the best policy measures to activate the union. Such an alliance theoretically rests on sound ground, and here’s why. A good starting point for appreciating the logic of a union within the GCC is the shared history and traditions of the member countries. Apart from their socio-religious and demographic similarities, their identity as the oil and gas capital of the world is a convenient unifier. For those interested in economic logic, a critical datum would be the current low level of trade between these countries, at 6 per cent, a clear indicator of the vast potential yet to be tapped. Indeed, just taking crude oil out of the equation makes the figure jump to 16 per cent. Even as the participating countries work out the minutiae of the union, intra-GCC trade is increasing, which strengthens this case. In addition, a monetary union will aid the establishment of a common market in the GCC and infuse greater liquidity in the GCC capital markets

through foreign direct investments within the member states. Apart from local benefits, a currency bloc will drive up the GCC states’ influence over international financial trends. It will endow the states with greater flexibility and spending powers and provide a consistent pitch to the region’s economic pursuits in the world stage. It is also expected to boost production efficiencies and lend scalability to commerce. As recent experience has shown, it is well nigh impossible to remain insulated from the snowballing effect of global fiscal troubles, no matter where they originate. As such, it makes sense for economies showing compatible patterns to turn this interconnectedness into a virtue. Since the time they were pegged to the US dollar two decades back (with the exception of Kuwait), the GCC economies have shown significant economic convergence, which makes them apt candidates for a united front. Interest rates imposed by the central banks in the region have closely tracked the movements in the US Federal Reserve, barring a brief period of divergence in 2006. Further, a common external tariff was set up

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FOCUS in 2003, taking forward the agenda of integration. Another important factor that brings the GCC states closer is their openness to labour, capital and goods mobility. The Gulf has been traditionally viewed as the receptacle of the worldâ&#x20AC;&#x2122;s best talent and technological capital, a factor that will serve the region in good stead once a completely free and fluid playing field is put in place, along the lines of the EU. Beyond the lure of economic rationale, a common market will make for better social infrastructure. All GCC citizens will be treated on par in their economic activities, and they will also gain freedom of movement and residence. Some of the immediate benefits will include employment in the private and public sectors, social security, real estate ownership, uniformity in taxation, and seamless access to education, health, and social services. This is consonant with the long-term national visions drawn

up by most of the GCC member states, which place a high premium on social development along with economic growth. Roadmap Saudi Arabia, Bahrain, Qatar and Kuwait have signed an agreement to chart out the relationship between monetary union institutions and their respective central banks. The agreement also delineates the legal and legislative responsibilities of the member countries. The Saudi capital, Riyadh, has been chosen as the seat of a regional central bank. This is in recognition of Saudi Arabiaâ&#x20AC;&#x2122;s preeminence in the GCC GDP pie. The central bank will be responsible for administering all policies related to the single currency regime, including the exchange rate, forex reserves and the issuance of currency notes and coins. The countries have decided to retain the dollar peg for the new common currency. The four countries planning to introduce a common currency will sell

off central bank loans granted to public companies. In line with the EU model, the draft agreement prohibits central banks from lending to the public sector, which is meant to prevent them from subsidising the public sector in their respective countries. Admittedly, the road ahead is not without its challenges. A key task for the policy makers will be to ensure

Riyadh will be the seat of the new regional central bank. that the act of union does not impinge upon the essential autonomies of the participating states. Synchronising the affairs of economies as huge as these will also require astute political and economic planning. Notwithstanding these factors, officials from the region have expressed optimism that the proposed union will have covered substantial ground by the end of 2009, as per the directives of the GCC Supreme Council. n

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Wealth Watch The Gulf is home to some of the world’s largest sovereign wealth funds, which boast of a much-needed global outlook and well-diversified portfolios.

overeign wealth funds (SWFs) were formed to enable the oilrich Gulf nations to invest their budget surpluses in liquid assets and treasury securities. Today, the Gulf is one of the biggest hubs for SWF activity, accounting for more than a third of the total assets held by such funds across the world. The Abu Dhabi Investment Authority (ADIA), established in 1976, is the world’s largest sovereign wealth fund with US$627bn in assets. It is followed by the Saudi Arabian Monetary Agency (SAMA) with an asset base of US$500bn. Growth engine The SWFs have acted as vehicles for the Gulf countries to venture into growth sectors in other geographies, ranging from real estate and construction to hospitality and private equity. The global diversification of SWFs allows them to invest in the best business opportunities, spread their risks and divert their funds overseas, thus preventing the overheating of their local economies. In a giant move exemplifying all these benefits, ADIA acquired a 75 per cent stake in New York City’s landmark Chrysler Building for US$800mn, taking advantage of falling property prices and rising oil revenues. Although one of the most prominent, this wasn’t the first jewel of the New York skyline

to be bought by foreign investors. In May 2008, a consortium comprising Boston Properties, Goldman Sachs Real Estate Opportunities Fund (backed by funds from Kuwait and Qatar), and Meraas Capital (Dubaibased real estate private equity firm) bought the General Motors building on Fifth Avenue for an estimated US$2.8bn, making it the single largest asset transaction of the year. Saving the world From being viewed as a world unto itself to an equal and interested participant in the affairs of the world at large, the Gulf has made tremendous strides in enhancing transparency levels and commanding the trust of the global business community. And this is not a stray success story, as the changing face of SWFs will testify. SWFs in the GCC region have played a vital role in salvaging the fortunes of the world economy in the aftermath of the recent crisis. They have actively supported the bailouts and stimulus activities for western companies, in what is surely the beginning of a new era in financial diplomacy. For instance, the Kuwait Investment Authority (KIA), the world’s oldest sovereign wealth fund with a portfolio of US$203bn, bailed out America’s biggest bank Citigroup with a US$6bn cash infusion last year,

giving it a 6 per cent stake in the firm. This strategy is useful on two counts. First, it helps the GCC economies in taking forward their agenda of integrating themselves internationally. Second, it is instrumental in achieving risk diversification and growing stakes in different asset classes, which can open up trading blockages and instil trust. Partners for tomorrow Over the years, sovereign funds have established themselves as partners in their governments’ socioeconomic strategies, a significant part of which involves building international good will and enhancing the reputation of the region as a trade partner. The R&D joint venture between US giant General Electric and Abu Dhabi’s state-owned Mubadala Development Company, which has assets of US$14.7bn, is a good example of this. Mubadala’s 5 per cent stake in Ferrari also indicates increasing emphasis in a diversified investment strategy. As oil prices recover from the lows seen during the early part of the crisis, GCC SWFs are expected to

SWFs are a key part of the Gulf’s attempts at economic diversification.

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FOCUS escalate their participation in foreign businesses. Though such activities will generate normal profits, they will help break down economic and psychosocial barriers and create a new paradigm of partnership. Though the global financial crisis may necessitate some changes in their operations, SWFs will continue to play an important role in shaping the economic exchanges between the Gulf and the rest of the world. The following section illustrates the collective might of the SWFs in each of the GCC member states. BAHRAIN MUMTALAKAT HOLDING COMPANY (US$14bn) Bahrain Mumtalakat Holding Company, the main investment

division of the Bahrain government, was founded in 2006. Focused on local investments, the fund derives capital primarily from oil. State-owned enterprises make up the bulk of its portfolio. The fund is currently in the process of diversification. OMAN OMAN INVESTMENT FUND The Oman Investment Fund (OIF) was born out of a Royal Decree in 2006. The Government of Oman is the sole stakeholder in the fund, and the Financial Affairs and Energy Resources Council (FAERC) is its governing body. OIF undertakes diverse equity, private equity and real estate investments around the world. OMAN STATE GENERAL RESERVE FUND (US$8.2bn) The Oman State General Reserve Fund was founded with the objective of managing the investments of the Sultanate of Oman. The fund is owned by the Government of Oman and governed by the Ministry of Finance. QATAR QATAR INVESTMENT AUTHORITY (US$62bn) The main agenda for the Qatar Investment Authority is to help the economy achieve diversification over a period of 10-15 years. The fund focuses on real estate, private equity and investment funds in global markets (US, Europe and Asia). SAUDI ARABIA SAUDI ARABIA PUBLIC INVESTMENT FUND (PIF) (US$5.3bn) Founded in 1971 to help develop the Saudi economy, PIF began investing in domestic joint-stock ventures in 1974. In 2008, PIF launched a new SWF with a long-term and globally poised outlook. SAMA FOREIGN HOLDINGS (US$500bn) Saudi Arabian Monetary Agency (SAMA), the central bank of the Kingdom of Saudi Arabia, ranks among the biggest SWFs in the world.

UAE ABU DHABI INVESTMENT AUTHORITY (ADIA) (US$627bn) Established in 1976, AIDA is wholly owned by the government of Abu Dhabi. The fund is an independent legal entity governed by senior executives appointed by Royal Decree. Threefourths of AIDA’s assets are managed by external managers. The largest SWF in the world, AIDA pumps in equity capital in developed as well as emerging markets and is also invested in sovereign and corporate debt, real estate and infrastructure. KUWAIT KUWAIT INVESTMENT AUTHORITY (KIA) (US$203bn) Based in Kuwait City, the KIA invests in the Gulf and international markets and has a branch office in London. The authority traces its origin to the formation of the Kuwait Investment Board in 1953 as part of Sheikh Abdullah Al-Salem Al-Sabah’s vision of using oil revenue for sustainable development. The body is responsible for ensuring that 10% of Kuwait’s total oil revenues are diverted to the Reserve for Future Generations. The KIA is headed by the Minister of Finance. n

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The ‘How’ Factor It is a fitting tribute to Abu Dhabi’s robust banking sector that Al Hilal Bank, set up amid the throes of the global financial crisis, has managed to grow into a formidable name. Mohammed Berro CEO, Al Hilal Bank

l Hilal Bank is the only bank in the UAE that is fully owned by the Abu Dhabi government through its investment arm Abu Dhabi Investment Council. The bank offers Shari’a-compliant consumer, corporate, retail, and treasury products to a wide array of industries including real estate, oil and gas, aircraft and shipping, retail and wholesale, hospitality and tourism and telecommunication and transportation. Al Hilal Bank is known for its commitment to the ‘how’s of banking – how it structures its branches, how it identifies and relates to its target market and how it packages and delivers its solutions to suit the needs of its customers. This permeates all areas of its operations, be it the Government Division, the Corporate Banking Division or the Institutional and Investment Banking Division. All these divisions are supported by the Product and Structuring Division which provides Shari’a structuring expertise. Established in 2008 with a capital of AED4bn, the bank has already loaned out AED1.25bn and aims to increase this to AED2bn by the end of 2009. Its assets are split in the healthy ratio of 30:70 between the retail and corporate businesses. CEO Mohammed Berro believes that there is space for everyone

in the UAE banking sector, and competition has in fact played a key role in the sector’s advancement in terms of technology, products, human resources, services and deliverables. “We can now compete globally”, he claims, “and this is due to a free, open and competitive market.” On the back of its strong showing so far, the management wants the bank to become the address of Islamic banking in every viable market. With this in view, Al Hilal will be extending to the Kazakh market this year in what is being billed as a big development for the bank. Growing and Giving Back The experienced team at Al Hilal Bank has already completed several significant transactions, such as the financing of an aircraft for Etihad last year for which it even won an award. It also participated in a series of transactions for the Dubai Finance Group last year. Recently, Al Hilal Bank was involved in a large transaction for DEWA (Dubai Electricity and Water Authority). In March-April 2008, Al Hilal Bank established a 100 per cent owned Islamic insurance subsidiary to further expand its range. Al Hilal Bank has also developed a reputation for giving back to the society. It is actively seeking to create an investment-savvy generation by

disseminating knowledge on Islamic banking practices. That apart, the bank is contributing to the development of an investment-friendly climate in Abu Dhabi, in synch with its 2030 Vision. “It’s all about you” With its emphasis on customer convenience and honourable Shari’acompliant offerings, Al Hilal Bank has developed a growing clientele among Emiratis as well as non-locals. It pioneered the ‘Financial Mall’ concept in Abu Dhabi to provide world-class facilities to all categories of customers. The Mall Branch is segmented across kids, youth, ladies, priority and mass retail segments and features a coffee shop, an airline desk, an Etisalat kiosk and a ‘Walk in Drive out’ concept auto showroom. From mobile banking, SMS banking, an extensive branch network and automatic teller machines to

Al Hilal Bank is known for its commitment to the ‘how’s of banking. cash and cheque deposit machines, automated safe deposit lockers, credit cards and deposit accounts, Al Hilal Bank has grown into an umbrella institution aligned with the exciting story that is Abu Dhabi. n

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Leading light

Despite the global crisis, the Qatar International Islamic Bank (QIIB) has carried on with its agenda of strengthening Qatar. This makes it a symbol of optimism and goodwill. Abdulbasit Al Shaibei

CEO, Qatar International Islamic Bank

“M

y biggest achievement, I believe, is that I could grow my bank from a small one…to a large financial institution in Qatar and the region. Now we have many full-fledged branches in Qatar,” says Abdulbasit Al Shaibei, the proud CEO of Qatar International Islamic Bank (QIIB). Mr. Al Shaibei is an ex-central banker who has functioned as the head of investment and foreign exchange as well as international investment at important banks in Qatar before joining QIIB. Under his leadership, QIIB has maintained its distinction of providing comprehensive solutions to its clients while strictly following the tenets of Shari’a. The bank is active in personal loans, corporate loans, small businesses and other direct investments. QIIB is particularly focused on Qatar’s small enterprises, which are in need of financial attention. The bank’s clientele includes a large number of expatriates in addition to Qatari nationals. Talking about what makes his bank unique, the CEO refers to the vision of its Board of Directors – to ensure stability at the bank’s executive level and facilitate teamwork. QIIB also scores when it comes to the adoption of technology and best-in-class training for its employees. “We believe in our responsibility towards our customers,

shareholders, employees and our community”, says the CEO. This is in line with QIIB’s vision to be the most successful Islamic bank in the region and rise to service levels provided by the most reputable banks in the world. Building Qatar Despite the international crisis, “Qatar is going to be the best performing economy in the world,” says a confident Mr Al Shaibei. The economy rests on strong fundamentals, and the proposed single currency will further boost the banking sector in the entire GCC region, he opines. QIIB has the distinction of not losing sight of its commitments to the future of Qatar, despite tightness all around that has forced many to abandon growth plans. As proof of its optimism about the future, QIIB has started building its new headquarters in Doha – a 44-storey building at the West Bay. The bank has also made significant contributions in training and developing Qatar’s national workforce. Pioneering presence QIIB was the first bank in Qatar to issue an Islamic bond for the local government in 2003. It was also behind the establishment of the Syrian International Investment Bank (SIIB), the first Islamic bank in Syria.

QIIB was the first bank in Qatar to issue an Islamic bond for the local government. Continuing its tradition of breaking new ground, QIIB has applied for a new bank in Sudan. The CEO is enthusiastic about the future of Islamic Banking in the MENA region and believes that QIIB will play a frontline role in this area as well. QIIB stresses the importance of sound business ethics, prudent management, corporate governance and risk assessment which will help create more stability in the country. The CEO emphasises the importance of fairness and transparency for sustainable growth in the financial sector. He also reminds everyone that under the government’s leadership, Qatar is an irresistible force in the global financial arena. “My message is that Qatar is the ideal place to invest. Qatar has become the icon of the world now. Many investments are coming here – not just in the energy sector, but in other areas such as education. Our Education City has become a role model for many others in the region and outside. Some world class educational institutions have already set up campuses here,” he signs off. n

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Front runner

As one of the world’s leading international Islamic banks, the Al Baraka Group is charting a unique path – based on the principles of the Shari’a – which combines social commitment and profitability. Adnan Ahmed Yousif

President and CEO, Al Baraka Banking Group

he Al Baraka Banking Group, or the Al Baraka Group, is a joint stock company based in Bahrain and listed on the Bahrain Stock Exchange and the NASDAQ Dubai Stock Exchange. It is an international Islamic bank with a Standard and Poors long and short-term credit rating of BBB- and A-3 respectively. The Al Baraka Banking Group (ABG) offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Shari’a. As one of the leading international Islamic banks, the group has a wide geographical presence in the form of banking units and representative offices in 12 countries, which in turn provide their services through 300 branches. These banking units are the Jordan Islamic Bank, Jordan; Al Baraka Islamic Bank, Bahrain; Al Baraka Islamic Bank, Pakistan; Banque Al Baraka D’Algerie, Algeria; Al Baraka Bank Sudan, Sudan; Al Baraka Bank Limited, South Africa; Al Baraka Bank Lebanon, Lebanon; Bank Et-Tamweel Al-Tunisi Al Saudi, Tunisia; The

The group has a wide geographical presence in the form of banking units and representative offices in twelve countries.

Egyptian Saudi Finance Bank, Egypt; the Al Baraka Turk Participation Bank, Turkey; the Al Baraka Bank Syria (in its formative stages), and an ABG representative office in Indonesia. Islamic banking The Al Baraka Group is grounded in the fundamentals of Islamic banking and Adnan Ahmed Yousif, the group’s President and CEO, ensures that these principles are followed rigidly. “In Islamic banking philosophy you have to be a part of your community and contribute to it. When you provide financing, you need to provide it for a need and not for something enjoyable. One of the cornerstones of our philosophy is that we have to create added value to the country and the economy. We pass on all the money that we receive from non-acceptable businesses to charities and also contribute from our own resources,” says Mr. Yousif. The Al Baraka Group has delivered consistent profits to its stakeholders and it has a successful business model. This model is based on four principles of success that its President has laid down. According to Mr. Yousif, “You have four elements of success, you need the right capital, the right management (which is the people), the right market and, these days, you have to have IT. If one of these elements is missing, you

cannot succeed. We focus a lot on the people and consider them a part of the capital.” Corporate identity The Al Baraka Group had grown as different units over the years and has only recently taken on a corporate identity as a unified banking group – a move that has yielded immense benefit to them. Mr. Yousif is concentrating on strengthening the group even as it expands at a steady rate. “When we acquire units, we always prepare them to start from the beginning. Many big institutions have faced some difficulties when they acquire units because sometimes you might buy a bank and then discover that the loan portfolio is more difficult than expected. Therefore we always want to start operations from the beginning, because it is something we are good at,” says Mr. Yousif. Mr. Yousif also has big plans, and great admiration, for Bahrain. “We are this small island surrounded by big countries. You have to think big but also think about your size. As a country, we enjoy many benefits that people don’t appreciate. We have security and good relations with the ruling family, who I have always admired. We haven’t reached our full potential, but with our limited resources we can still live and enjoy life. Being rich but not having security is worth nothing,” he says. n

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Vision Inovest

Bred in the spirit of dynamism, innovation and result-orientation, Bahrain’s Inovest, formerly known as Tameer, continues to expand by aggressively capitalising on opportunities. Mohammed Abdul Khaliq

Executive Director Business Development, Inovest

shari’a-compliant investment company which was bred in the spirit of dynamism, innovation, and result-orientation, Inovest is one of the best-known names in Bahrain. Its principal areas of business include asset management, private equity and venture capital, and real estate investment. In the past six years, Inovest (formerly Tameer) has grown from a US$16mn closed shareholding company to a US$107mn publicly-listed company on the Bahrain and Kuwait stock exchanges. During this period, the company reflected an impressive financial performance, with continuous year-on-year growth in Assets Under Management (AUM) and profitability. Milestones Mohammed Abdul Khaliq, Executive Director Business Development, Inovest, believes the company has done very well since its transformation to Inovest from Tameer, which was a big milestone in the company’s history. “The transformation of Tameer into Inovest is in itself a significant milestone. In the short time since our official inauguration in the last quarter of 2008, we are proud to have launched two very innovative products. The first is the Bahrain Water Technology Co, an initiative in which Inovest aims to establish a first of its kind facility in the

Kingdom of Bahrain for manufacturing water filter cartridges for distribution to household and commercial sectors in the MENA region. The second significant milestone was the announcement of a BD30mn Inovest Real Estate Investment Trust (IREIT), which was established with the principal purpose of acquiring income generating properties in GCC,” he says. For the moment, Inovest is focused on expanding its business reach within the GCC initially and then within the rest of the MENA region. However, their business model favours an opportunistic approach, whereby, investments in a place are based on the potential of returns rather than its geographical location. Some of the key projects by Inovest include landmark developments such as Bahrain Investment Wharf, Durrat Marina, Dannat Resort (KSA), Tala Island, and Adhari Park. According to Mr. Khaliq, the Bahrain Investment Wharf project was a major landmark for Inovest, “A number of companies are part of the Inovest umbrella, including Tameer and its family of subsidiaries. Accordingly, there is a constant stream of projects being worked on in a crosssection of sectors. One of the projects was the Bahrain Investment Wharf (BIW), which is one of the largest

development projects in Bahrain, and the only privately-owned, operated and managed industrial park in the Kingdom. Covering an area of 1.7 million square metres in the new Hidd Industrial Development Zone, the groundbreaking project is a mixed-use industrial, business, logistics, information technology, commercial and residential development estate. We are especially proud of the fact that the project will help to expand Bahrain’s light and medium manufacturing industry.” Viva la Bahrain Mr. Khaliq believes Bahrain has handled the economic crisis well and he is committed to Bahrain’s Vision 2030. He says, “Though the world is collectively dealing with the throes of an international economic crisis; Bahrain has buoyed itself with a stringent regulatory environment and diversified approach to business expansion. The country remains largely a developing market that holds the promise of an increasing number of business and investment opportunities across a range of sectors.” n

The company has recorded continuous growth in assets under management.

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Building trust With a long history of participation in national development, the Al Badie family and Al Badie Group are names that inspire respect in the global investor community. His Excellency Mohamed Joa’n Al Badie Chairman, Al Badie Group

l Badie Trading Establishment, the first company in the Al Badie Group, was founded in 1967 – even before the foundation of the UAE state in 1971. Since then, the Al Badies have been among the few families that have actively contributed to nation building. Never say No ABG is unmatched in the breadth of its expertise, with frontline presence in property development, investments & partnerships, travel & tourism, health care, and defence to name a few. Chairman His Excellency Mohamed Joa’n Al Badie sums up the Group’s unique strength: “We never focus on investment in a specific industry; we look at market demand and work aggressively on finding an international partner that will work with us on delivering the project as envisioned.” Another critical differentiator is the company’s identity as an end-toend services provider and not just a distributor or agent. The Group takes pride in not refusing any project, no matter how challenging it is. “We will develop any idea,” he says, “(for instance), we put a team together and

Al Badie wants the whole world to be a part of the exciting Abu Dhabi story.

invested to create a partnership with Minsk Tractors to develop the highest transporters in the world. (We also created) a military tank with Sabiex from Belgium…the first of its kind in this region.”

company Mirvac to address the real estate space across the entire MENA region, the Rotana Hotel Capital Centre, the Centro Hotel, and the Construction Worker Residential City.

Leadership Chairman Al Badie, a formidable name in the UAE and founder-member in the board of directors of the National Bank of Abu Dhabi (the second largest in the UAE), believes that the success of the company owes to its engagement with its people. “We all work together and help each other”, he says. A selfmade man, Al Badie has been working on his dream of building Abu Dhabi since age 18 and is proud of the role his company is playing in taking forward the Emirate’s vision.

Health care More than 15 years ago, Al Badie Group established The Life Diagnostic Centre in downtown Abu Dhabi, which is counted among the most highly reputed medical facilities in the region. As a part of its continued commitment to social development, the Group is now developing a 200bed hospital on a 45,000sq m site in Khalifa. The goal is to relieve the over-burdened private hospitals in the Emirate and create a sustainable health care infrastructure for the rapidly growing region.

Key projects Property development Property development is currently a key thrust area for the company. Topping the chart is the AED700m Beach Towers project in Abu Dhabi’s prestigious Al Reem Island, set for completion in 2010. A glittering tribute to the Emirate’s 2030 vision, the luxurious tower will offer premium fishing, unparalleled views and a host of other exciting amenities. Other important projects on the roster include a JV with Australian

Message to the world The Al Badie Group invites the whole world to be a part of the exciting Abu Dhabi story. “Abu Dhabi is stable and provides a safe and enjoyable lifestyle,” believes the chairman. “(We have) efficient infrastructure, low-cost power supply, no tax and cheaper labour costs”. With its proven model of growing with the nation, notwithstanding the recession which hasn’t really had much effect on the UAE, the Group has earned its right to sound optimistic. n

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Driven by vision With a gamut of companies under its umbrella, the Bin Jabr Group continues to be an influential model for sound business practices, setting industry standards for growth through intelligent investment choices. His Excellency Saeed Bin Jabr Al Suweidi Chairman, Bin Jabr Group

he Bin Jabr Group began in the early seventies with a single company sponsorship agreement with Thomson-CSF, later renamed Thales. Since that time, the Bin Jabr Group has grown exponentially and today represents an impressive array of some of the world’s most prestigious companies. After only three decades, the Bin Jabr Group’s portfolio of activities includes both private and governmental entities in the areas of defence, health care, retail, construction energy and manufacturing among others. With its success in attracting top companies and their earned reputation for excellence and integrity, the Bin Jabr Group has become one of the largest and most influential financial groups in the Middle East. Trust and excellence The Bin Jabr Group has been guided by the philosophy of its Chairman, His Excellency Saeed Bin Jabr Al Suweidi, with trust and excellence as its cornerstones. “As one of the industrial pioneers in UAE, we look ahead with a desire to focus on the nation’s further industrial growth and global leadership by being an active part of it. At Bin Jabr, we believe that a company’s excellence is not measured merely by the number of businesses it has developed. We believe, and promote,

a lifetime commitment to care for the environment and society, and its preservation for future generations. Bin Jabr is committed to its pledge of energy conservation, and supports the intelligent use of resources to curb destructive environmental impact on the nation and the world,” says the chairman. The Bin Jabr Group has been successful in forming a string of partnerships with some of the world’s leading companies in different sectors. One of its most notable milestones was a joint venture with Jan De Nul in the dredging and creation of Port Zayed in Abu Dhabi. Bin Jabr Group’s contributions were equally important in assisting the UAE Armed Forces through its communications contract with Thales. Bin Jabr Group’s multimillion dollar contract with Tatra to develop a superior and highly sophisticated 8x8 vehicle, grew into what is now a substantial and important business in military vehicles. Its interest and expertise in the military area also saw it enter into an agreement with Tawazun Holding for collaboration on setting up a joint venture company for the development of the Nimir military vehicle, a contract that was awarded to it. Nimir is an offroad extreme utility military vehicle, designed and manufactured by Bin Jabr Group through its facility in Jordan.

The core aim of the group is to take the oil and gas, military supplies, and industrial equipment manufacturing arms to other GCC countries. “We have just initiated a joint venture with Sagem where they will work on track control systems and infrastructure in the UAE,” says Mohammed Saeed Al Suweidi, Director, Bin Jabr Group, who has also played a big role in the growth and development of the group. New horizons According to the director, the company wants to enter the agricultural sector as well. “We want to head into the agricultural business in the Middle East and Africa. Food export is big business in the region and we want to take advantage of that. In addition, we are trying to move to the North African region with all of our existing businesses here and are gaining more and more penetration in Saudi Arabia. We are currently moving there with oil and gas. But despite new projects, the core aim of the group is to take the oil and gas, military supplies, and industrial equipment manufacturing wings to other GCC countries and establish our presence there,” says Mr. Al Suweidi. n

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GRowth path

Since its inception, the ever-diversifying Al Jaber Group has aligned its growth and vision with that of the Abu Dhabi government to ensure that it contributes to the growth of the nation. His Excellency Obaid Khaleefa Jaber Al Murri

Chairman, Al Jaber Group

he Al Jaber Group was started in 1970 as a company that focussed primarily on the construction sector. The idea was to complement the great economic boom that was taking place in Abu Dhabi during that period by creating a professional company capable of executing all sorts of infrastructure and construction projects. The company has taken many strides since then and has grown manifold, not only in terms of its turnover but also in terms of its portfolio and the number of people that are employed by it. Today, the Al Jaber Group is a privately owned multifaceted group of companies based in Abu Dhabi, providing its professional services in the construction, heavy lifting & logistics, industrial and trading sectors.

in excess of 50,000 and a total asset base exceeding AED10bn, the group is geared to meet the constantly changing demands of the market by investing in the latest engineering and information technology. The company is headed by its Chairman, His Excellency Obaid Khaleefa Jaber Al Murri, who has always believed in aligning his company’s objectives to that of his nation. “Ever since we established the Al Jaber Group, we had a clear vision of catering to the needs of our country; and we worked intensely and closely with the Abu Dhabi Government to ensure that we can contribute to the boom the country was witnessing. We

The Al Jaber Group has diversification as one of its cornerstones. In step with the government The group’s strategy involves a continuous quest for opportunities in new markets, in addition to enhancing its large portfolio with new products and technical innovations to maintain its market leadership. With a workforce

DEMAG CC 8800-1Twin Crane

were fortunate to be operating in Abu Dhabi as we have been getting limitless support from the Government. Since the early days we were able to preplan and launch business entities that would help us provide comprehensive services and products,” says His Excellency Al Murri. The Al Jaber group draws a large part of its strength from the leadership of His Excellency, who believes in keeping his people together. “I believe in sharing the inspiration and delegating power and knowledge. I am very pleased that great numbers of our staff are with us since we established the group. These are the real partnerships in our business,” he says. Diversification The Al Jaber Group has diversification as one of its cornerstones and the launch of Al Jaber Aviation recently was also part of the diversification process. “Our vision for the coming years is to continue building what we already established. I believe in expansion and diversification; expansion both vertically and horizontally, and diversification to reach out to more industries and sectors. But the key factor is diversification; I am confident that a diversified group of companies is more flexible to face challenges, and at the same time very capable of handling a variety of projects.” n

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talent hunt

The Khalifa Fund is supporting the development of small and medium businesses in the UAE by offering good business opportunities for young Emiratis in both the industrial and service sectors. His Excellency Dr. Ahmed Khalil Al Mutawa Executive Director, Khalifa Fund

he Khalifa Fund was established with the objective of offering business opportunities to Emirate entrepreneurs and to help nurture medium-sized businesses in the UAE. The fund has been working in tandem with Abu Dhabi’s strategic economic development in various sectors and assisting in the creation of Emirati businessmen and businesswomen with capabilities to support and participate in the ongoing economic growth and development of the Emirate of Abu Dhabi. It aims to work towards building and sustaining an economic environment of international standards. Funding success The Executive Director of Khalifa Fund is His Excellency Dr. Ahmed Khalil Al Mutawa. He has been working closely with the fund and has been with it since its inception. The Abu Dhabi government has given the Khalifa Fund AED1bn as the initial funding and this amount is doled out by the fund in three categories. “The financial support has come as a grant from the Government, and we are managing that grant of 1 billion dirham. Khotwa, the first category, is ‘the step’. Bedaya is ‘the beginning’ and this category is to help entrepreneurs to start up new businesses and provides for a grant of a maximum of AED3mn. Zeyada

has a cap of AED5mn and it is for an existing business that the entrepreneur would like to expand because he sees opportunity,” says Mr. Ahmed. So far the fund has approved projects in the range of AED290mn – 176 projects, most of them in Bedaya, with an average of 1.6 million dirham per project. Some of them have already started and are doing very well. Dr. Ahmed feels the fund has a unique way of functioning, “The uniqueness of the Khalifa Fund is that we are with the entrepreneur from the beginning to the end. When he walks in with a certain idea, the counsellor sits with him to understand what he wants and to judge whether it really fits his

So far the fund has approved projects in the range of AED290mn. capabilities, knowledge and experience. He then goes through training, which is sometimes mandatory to understand how to write a business plan and understand financial flows. Once we find that the candidate is ready to take on the challenges, there is a special committee that sits and interviews the applicants and looks at the feasibility study that they did with the counsellor, and then it goes to the board for approval.”

Most small and medium enterprises (SMEs) fail in the first three years of business, which is why the Khalifa Fund keeps a close watch on entrepreneurs who have received money from it. Besides ensuring that the funds are not misappropriated, this enables them to recommend training for the entrepreneur in an area that he may not be good at. Such attention to detail goes a long way in making the start-ups successful. The Khalifa Fund is also working for the betterment of women in society through the Khotwa scheme. Dreaming big Dr. Ahmed has big plans for the fund’s future. “Khalifa Fund wants to shift into a higher gear. We want to target high impact entrepreneurs. These are the likes of Bill Gates and Michael Dell. We will find them through 3 channels – they could be out there working, so first you identify who are the potential candidates; and they could be in their last years at the university; or they could be in high school with some aspirations. So we are going to have programs for high schools and universities, like a competition to create projects. Through these projects, we will find out who are the good ones. We will then get them internships, develop them and work with them,” he says. n

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Attention to detail

M. Krishnamurthi, chairman, Baker Tilly MKM, chartered accountants, talks about his company’s success, which has been achieved through hard work and keeping a keen eye on detail. M. Krishnamurthi

Chairman, Baker Tilly MKM

he chartered accountancy firm, Baker Tilly MKM, was established in 1973 when Munim Al Rubaie, the Group Managing Partner, first started its operations in Baghdad after qualifying as a chartered accountant from England and Wales. Since then, the company has grown from a single office location to multilocation offices in the Middle East. Its chairman,

M Krishnamurthi, is the senior-most chartered accountant in the firm. A dedicated and hard-working man, Mr. Krishnamurthi wants to make his firm one of the best in the world. “Our focus is to make Baker Tilly one of the top firms in the UAE and around the world. We have already established offices in Sharjah and Ras Al Khaima, and we are looking forward to opening

offices in Qatar, Iran, and Oman,” he says. Mr. Krishnamurthi maintains that the company owes its success to their attention to detail. “We have the best chartered accountants, the best personnel that we can lay our hands on and in the line of our operation we pay special attention to minor issues that the big companies tend to overlook.” n

Way to the top

The Al Aas Group has emerged as one of the leading companies in the UAE and is now eyeing the international market after a successful three and a half decades of being on the top. Khaled Omar Al Aas

Chairman, Al Aas Group

ne of the biggest companies in the Middle East, Al Aas owns many subsidiary companies,and works in different fields like manufacturing, contracting and general trade. The group’s activity covers civil, electrical, agricultural, medical works, gypsum industries, electrical industries and plastic industries, and Al Aas has been doing this for nearly

four decades. Established in Al Ain City in the United Arab Emirates in 1971, Al Aas soon became one of the leading companies in the UAE. Al Aas’ profile has grown leaps and bounds due to their services and good reputation. At present, Al Aas exports their products to Jordan, Egypt, Saudi Arabia, Qatar, Bahrain, Yemen and Algeria.

All this is possible through the leadership and guidance of Mr Khaled Omar Al Aas, the Chairman. The Al Aas Group consists of General Trading Group, Arabian Group for Gypsum Industries and Decors, National Contracting Group, Arabian Contracting Est, Al Tufiq Contracting Est, and Sabaa For Electrical and Mechanical Contracting Est. n

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Saleh M. Muqattash CEO, CCTC

Leading by innovation

or someone with a background in banking, taking an entirely new path and setting up his own electromechanical company can be very daunting and well nigh impossible. That, however, is exactly the path Saleh M. Muqattash took when he left the Central Bank to start the Control Contracting and Trading Company, which is now an offshore company and a renowned name in the Middle East; playing a key role in Abu Dhabi’s realisation of its Vision 2030. Control contracting continues to expand its expertise in the engineering and construction sector while placing particular importance on its clients and the need to provide quality service. Mr. Muqattash, however,

Juma Khadim Rashed Al Muhairy Chairman, ADSO

Principled success Strong arsenal O

ne of the leading players in the defence game, ADCOM Group is an old hand at analysing markets and staying on top despite difficult times. Established 20 years ago, the ADCOM Group specialises in the development of military products; Advanced Directing System (ADS),

wants to do more. “It is my wish to create, invent, and offer something to the people of the Middle East. The reason why I am progressing in my current field of business is because I like to be the brain behind unique innovative projects and see them from start to end. My most recent initiative is to establish a ship-building industry. These ships will specialise in oil drilling and will be different from traditional concepts used in building military ships or recreational facility boats,” he says. “As part of our objectives, we bring together business opportunities and innovative thinking with the hope of making life better for the people,” says Mr. Muqattash. n

he Abu Dhabi Services Office (ADSO) was set up in 1968 in Abu Dhabi by its late founder Philip Khoury. From its humble beginnings, the ADSO has grown phenomenally over the years to become the ADSO Group of Companies with its head office in Abu Dhabi and branches in Dubai, Sharjah, Al Ain, Al Ghuaifat, Al Maziyat and associated offices in other major Gulf cities. Under Mr. Khoury’s leadership, the company became a provider of allied services like transportation, cable and pipelaying, networking, earth and civil work, equipment hire and preparation of project sites and camps among other things. The company has been fortunate to have an able leader in

the form of its current chairman, Juma Khadim Al Muhairy, take on the mantle from Mr. Khoury. According to Mr. Muhairy, trust has played a big role in the company’s success. “Our business model is based on trust and flexibility between the manager and the employees. We also rely on trust between our company and other companies coming to work with us, and with our clients,” he says. With Mr. Muhairy believing completely with His Highness’ vision for the country, ADSO has also played a big role in the economy. “Our biggest achievement is that we have remained standing amidst all the economic problems of our times. We are strongly rooted in the economy,” he says. n

and the manufacture of UATs and drone targets. ADCOM Manufacturing is a joint venture between the UAE Armed Forces and the ADCOM Group, which owns 75% of the total investments. Though ADCOM Manufacturing was established to meet the demands of the local market, it has expanded to many GCC and European markets. As General Manager of the ADCOM Group, a lot of responsibility lies on Mohammed Khalifa Al Ghafli. “Our strategy is different — we don’t manufacture things and force people

to buy them. We manufacture what people want. For instance, we were the first to manufacture armed vehicles in the UAE,” says Mr. Khalifa. “UAE has implemented a new system of information gathering for military personnel and we are the role models in the business,” ADCOM logo he says. n

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Driving force

Even as the petrodollars continue to flow, the GCC nations – energy powerhouses of the world – are at the forefront of research and implementation in renewable energy sources.

s the world moves towards becoming more energy efficient and every nation seeks to reduce its carbon footprint, the GCC nations are taking massive strides in becoming more environmentally responsible and looking for alternative sources of energy. With the availability of vast amounts of open land as well as the highest solar radiation levels, the GCC countries are suited for harnessing solar energy to meet their requirements. Despite moderate wind speeds, even turbines can be used as a source of generating power. As a tribute to the GCC nations’ commitment to do their bit to prevent climate change, the UAE has been awarded the headquarters of the International Renewable Energy Agency (IRENA). Once the headquarters are complete, the International Renewable Energy Agency will become the world’s only international agency to have its headquarters in a developing nation.

The decision to set up the headquarters in Masdar City, Abu Dhabi, was taken during a meeting of the 136-member nations of the IRENA, and was a near unanimous one. Masdar is the ideal place for the IRENA headquarters as it will be the world’s first carbon-neutral, zero-waste city powered entirely by renewables. Masdar will have no cars and people will move around using automatic electric vehicles that move on a subterranean level. The airconditioning will be solar powered. The Gulf countries have already been at the forefront of adopting new energy sources – Bahrain’s World Trade Center is the world’s first building to incorporate wind turbines into its design and architect Atkins is currently working on the second for the UAE. Qatar has the world’s largest liquefied natural gas (LNG) train and Dubai was the world’s first city to require, by law, a level of green-ness in every new building. In fact, Abu Dhabi

was recently voted the Sustainable City of the Year at London’s Global Renewable Energy Awards in London. Experts believe that the GCC nations have the potential to meet their energy need from three main sources – nuclear, sun and wind. Being a desert terrain, the Gulf has an edge over other areas in having longer periods of sunshine, while the wind velocity in the region is also ideal to produce energy from windmills. Some countries have already taken measures to utilise these sources to generate energy, including building nuclear plants in the UAE, the construction of a methanol complex in Oman based on palm trees and the establishment of a USD7mn centre for the development of renewable energy at the King Fadh Petroleum and Minerals University in Saudi Arabia. Experts believe regional states will push ahead with such projects despite their high costs – estimating that the six GCC countries could pump about USD200bn into 120 renewable energy projects in the next two decades. GCC countries have enough solar and wind potential to generate electricity that could meet all their needs without using the oil and gas wealth. Meanwhile, a plan to link the electricity grids of the six GCC countries is also underway to ensure that the nations are flush with electricity while the renewable sources gather steam. The power grids of Saudi Arabia, Kuwait, Qatar and Bahrain have already been linked as part of the USD1.4bn power connection project. The UAE will come on board in 2011 and Oman will also be joining soon. Even as the Gulf region looks at renewable energy sources, the petrodollars continue to flow. GCC nations control 45 per cent of the world’s recoverable oil deposits and a third of the global gas wealth. The Kingdom of Saudi Arabia alone has the world’s largest proven reserve of oil at 214 billion barrels. Goldman’s commodities research analysts expect oil prices to reach USD90 per barrel in 2010, which puts the six-member GCC in a favourable spot – despite the downturn – to gain from a return of the petrodollars. The

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region as a whole will once again reemerge as a leading capital exporter, which will make a significant difference to real growth in 2010. The six-nation alliance earned US$364bn from oil in 2007, which reached US$636bn in 2008 and is projected to reach USD657bn in 2009. Oil powerhouse Saudi Arabia’s earnings in 2008 and 2009 will be just under US$700bn. The six states, which boast just less than half of the world’s proven crude reserves, produce around 16 million barrels per day, or just under one-fifth of the world’s consumption. World energy demand is expected to spike by 1 to 2 per cent every year over the next 15 years. It is expected to reach an annual demand of 107 million barrels per day by 2020, partly as an anticipated consequence of growth in China, India and other Southeast Asian economies, thereby ensuring a steady inflow of capital into the GCC countries. The Middle East has a reserves-to-production life of 92 years and is expected to play a pre-eminent role in the global energy theatre. The leaders of the GCC countries realise, however, that oil resources are finite. The forays into renewable energy will not only make the region self-sufficient in terms of energy needs and help the environment, but will also help the nations maintain their position as the principal energy exporters in the

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world. It speaks volumes about the wisdom and foresight of the leaders of the nations that the money gained

from oil exports is being invested heavily in the development of new energy sources. n

Oil reserves as at end-2008 Country

Thousand Million Barrels

% of Total

Reserves to Production (R/P)

Kuwait

101.5

8.1%

99.6

Oman

5.6

0.4%

20.9

Saudi Arabia

264.1

21.0%

66.5

Qatar

27.3

2.2%

54.1

UAE

97.8

7.8%

89.7

Notes: Proved reserves of oil — Generally taken to be those quantities that geological and engineering information indicate with reasonable certainty can be recovered in the future from known reservoirs under existing economic and operating conditions. Table compiled by OPEC.

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Energy hub

Energy City Qatar, the Middle East’s first energy business destination, promises to be a fully integrated and intelligent cluster catering to the needs of the energy industry. Hesham Ismaeel AbdulRahman Al-Emadi

CEO, Energy City Qatar

ith a GDP growth rate that is hovering around 13 per cent even in these troubled times, a per capita income figure which is set to be the highest in the world, and its strategic location in the Gulf, which holds 60 per cent of the world’s oil reserves in its kitty, the small nation of Qatar has a lot going for it. To leverage all these advantages and to add to the nation’s appeal as an investment hub, the Qatari Diar Real Estate investment company is developing the Middle East’s first energy business destination, the Energy City Qatar, as part of the development of Qatar’s newest city – Lusail. Setting benchmarks Energy City Qatar has been conceived with the purpose of providing a nodal point which will offer players in the energy industry ease of interaction and communication as well as economies of scale and easier access to opportunities and decision makers at all levels. Hesham Ismaeel AbdulRahman AlEmadi, an industrial investment expert and veteran in the energy sector, dons the mantle of the CEO of Energy City Qatar. He is convinced that Qatar is the ideal location for the Energy City. “Energy City Qatar has been conceived as Qatar lies in the heart of the Gulf energy arena. With Qatar’s immense reserves of natural gas, its

development of its kind, equipped dramatic success in the monetarisation with state-of-the-art facilities and of those reserves, its socio-political services. As the Middle East’s first liberalisation and business friendly energy cluster, first e-city and the first reformist identity, Qatar’s pull as IT city, Energy City Qatar will be filled the energy centre of the Gulf is ever with a diverse mix of energy related increasing,” says Mr. Al-Emadi companies, multiple customers, The Energy City is concentrating its services on three levels. At the industry level, it will attract energy companies and related industries, thereby providing a single point access to the regional energy industry. At the corporate level, it will allow Night view of Energy City Qatar companies to settle down easily and gain suppliers and peers in a vibrant, access to the decision makers; and at innovative environment.” the residential level, it will make life attractive and provide a ‘live, work and Looking ahead play’ solution. Mr. Al-Emadi says that Energy City Besides these, there are many Qatar will serve as a starting point factors that give the city a unique for other energy cities — in India and identity and position, both in the Gulf Libya — which will also be under his and in the world. According to Mr. Alaegis. “The experience gained from Emadi, “Energy City Qatar will be the constructing Energy City Qatar will world’s most technologically advanced allow us to reach a level of perfection and expertise that will definitely The city will provide contribute in both the efficiency and single point access to the effectiveness in building and launching regional energy industry. the other cities,” he adds. n

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Tourism boom

The travel industry was also hit by the economic slowdown but still millions flock to the Middle East for a spiritual journey, to soak in the sights or just to relax.

s one of the industries to have suffered most due to the economic crisis, tourism it would seem is a stagnant sector. But you could call the GCC an exception with tourists still coming in every year for a unique experience. In its July 2009 report, the World Tourism Organisation (WTO) revealed that there was a sharp decline in tourism rates. The number of tourists in May and June of the year has declined by 7.7 per cent compared to the same period in 2008. But a ray of hope comes in the form of the Arab countries, as statistics show that they are better prepared to overcome the tourism crisis than any other area in the world. The Middle East has had the highest tourism growth rate in the world - an increase of 11 per cent in 2008 compared to 2 per cent in the rest of the world and the WTO expects tourism in Arab countries to increase by 2-6 per cent this year. In addition, statistics issued by the Syrian Ministry of Tourism also points towards a growth in tourism in the Middle East. An estimated 116,109

Tourism in the GCC states has done exceptionally well despite the recent economic crisis.

tourists arrived in Arab countries in the first quarter of 2009, compared to 94,158 tourists in the same period in 2008, a growth rate of 23 per cent.

at improving infrastructure as part of an effort to boost tourism revenue and employment opportunities for its citizens.

Saudi Arabia Saudi Arabia has recently launched several initiatives as part of a multibillion dollar effort to boost tourism in the kingdom. Developing tourism is a high priority for the government as Saudi Arabia is trying to make its economy less dependent on oil, particularly in light of the plunge in crude prices. By far the most visited region in the Middle East, Saudi owes much of it to the places of religious importance – Mecca and Madina – in the kingdom. Religious tourism accounts for about 2/3rd of all revenue generated in the country. Besides these holy sites, there is an earnest effort to attract the tourists through a showcase of the kingdom’s riches. The National Museum in Riyadh is one such attraction. One of the largest impediments to tourism growth in the kingdom is its infrastructure capacity. The country’s shortcomings are most evident during Haj, the annual pilgrimage of three million Muslims to Mecca, which creates many problems due to overcrowding. Recognising this, the Saudi government has approved a US$38bn tourism programme aimed

Oman Oman is spending billions to boost tourism as part of a strategy to diversify its economy. But while the country is keen to attract more visitors, it is even more determined to protect and showcase its culture and traditions. Under a new strategy called Vision 2020, the government is teaming up with private sector operators in multibillion dollar projects to boost major tourism projects. The country hopes that the new initiative will enable it to attract 12 million tourists annually by 2020, as compared to the annual figure of 3.2 million at present. One of the key projects has been the expansion of Muscat International Airport, which includes a new terminal building, an additional runway, and an upgrade to the existing runway that will enable it to handle the Airbus A380. When it is finished in 2011, the airport will be able to accommodate more than 12 million visitors annualy. Also in the pipeline is the development of 10 new resorts over the next five years, including the newly opened Muscat Hills Golf and Country Club, the US$7bn Blue City complex,

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FOCUS and the Wave, a US$4bn beachfront resort. But besides these projects, Oman is striving hard to protect its centuries-old culture, traditions and natural sites. Its main strategy is to attract a niche market of high-spending visitors, rather than hordes of tourists. Increased connectivity to Europe through Oman Air will get underway in September. Last but not least, Oman is sure to attract sports enthusiasts and adventure junkies during the 2010 Asian Beach Games, which the Sultanate will host in Wudum Al Sahil near Muscat in December next year.

Dubai, one of the world’s mega cities, is already famous as the construction hub of the Middle East. Bahrain Already a big hit with sports enthusiast, Bahrain is an example for the rest of the Middle East when it comes to boosting tourism. With its annual Formula One Grand Prix drawing millions, Bahrain is now looking seaward for another masterplan. Dubbed Nurana, Bahrain’s most inspiring waterfront address will overlook the majestic Bahrain Fort and is close to the exclusive Seef area. It is set to comprise a vibrant mix of villas, sea-view apartments, exciting retail, entertainment and commercial spaces. Tourism is already a booming sector in the country. The industry accounts for 10 per cent of Bahrain’s economy. The main tourist attractions in the country are Museum of Pearl Diving, Bair Al Qu’ran (Quran House), Shaikh Isa’s House, Tree of Life and the King Fahad Causeway. Besides these, the country is famous for horse riding, pearl diving and its golf courses. Kuwait The Kuwaiti economy is mainly dependent on proven crude oil reserves of about 96 billion barrels, ie about 10 per cent of world reserves. Petroleum accounts for nearly half of GDP, 90 per cent of export revenues, and 5 per cent of the government income. For the business traveller,

who wants to take a break Kuwait’s national museum is a good start. Located in Kuwait City, the museum features artifacts reflecting the social, economic, political and religious life of the Kuwaiti people. It houses the Dar Al-Athar Al-Islamiyyah (DAI) or the Al-Sabah collection of Islamic art, one of the most comprehensive collections in the world ranging from early Islam to the 18th century. Besides, Bayt AlBadr (Al-Badr House) and the Sadu House are other attractions. UAE Abu Dhabi is eyeing a 59 per cent growth in cruise passenger arrivals this season. Despiter being heaviest hit due to the economic slowdown, Dubai and Abu Dhabi still draw tourists from around the world. Forecasts by the Abu Dhabi Tourism Authority (ADTA), which manages UAE’s tourism industry, point to approximately 199,113 arrivals in the season as compared to a passenger arrivals total of 125,200 last season. This is just one of the many positive results of Abu Dhabi and Dubai’s aggressive tourism promotion. Abu Dhabi’s has a lot to please tourists. Besides its shopping malls and sports events, Abu Dhabi has a few heritage sites as well. The Emirates Palace, Al Hosn Palace, Sheikh Zayed Mosque are a few of them and you can watch locals relaxing at the Corniche and the Heritage Village. Dubai, one of the world’s mega cities, is already famous as the construction hub of the Middle East. With the world’s tallest tower, the Burj Dubai, being built in the city, it is sure to draw in the traveller looking for a quirky holiday. Dubai is also famous for its shopping festivals and malls - Dubai Mall and Mall of the Emirates. And the beaches of the Arabian Gulf, the vibrant nightlife in the city are also attractions for the tourists. It truly has everything a traveller

needs. Besides these, the Burj Al Arab is a great option to stay in luxury and style. Qatar Qatar is fast becoming the sports capital of the Middle East. Having hosted the 2006 Asian Games, it is also the home of the prestigious tennis tournament the Qatar Open. Besides, the country is host to a number of golf and racing events. It will also host the football Asia Cup in 2011. From a tourist’s point of view, the Museum of Islamic Art is the shining beacon of Qatar. The understated and elegant design of the building has become a landmark of the capital city, Doha. With its proximity to the pristine Arabian Gulf, adventure sports like scuba diving, windsurfing, jet-skiing, water-skiing on artificial reefs are major crowd-pullers. In stark contrast, the desert near Khor Al Udaid offers the thrill of off-road safaris. Qatar Tourism and Exhibitions Authority has promised a 400 per cent increase in the number of luxury hotel rooms by 2012 to accommodate the surging visitor numbers. The number of luxury rooms in hotels will climb from 7,000 to more than 29,000 by 2012, the QTEA claims. n

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RACING TO SUCCESS Part of Abu Dhabi’s grand Vision 2030, the Yas Marina Formula One circuit promises to be a new benchmark for motorsport. Richard Cregan, CEO, ADMM LLC, talks about how the circuit could make Abu Dhabi one of the most sought-after business and leisure destinations in the world.

bu Dhabi, the capital of the United Arab Emirates, refuses to rest on its laurels. Already touted as the richest city in the world and an important business destination, the Government has a grand vision of where it wants to see Abu Dhabi by the year 2030. An important step towards that end is the establishment of the Yas Marina Formula One circuit at the strategically located and scenic Yas Island. The construction of the circuit is on and is taking place with clockwork precision ahead of November 1, when it will host the first Formula 1 Etihad Airways Abu Dhabi Grand Prix.

Trendsetter Still under construction, the Yas Marina Formula One circuit has already received praise from experts, with Formula One President Bernie Ecclestone calling it “one of the most exciting tracks I have ever seen”. And with good reason, for the Yas Marina is a very sophisticated and technically advanced track. To use the word ‘difficult’ for the construction of a circuit like this in less than three years is an understatement — a fact that the Government of Abu

Dhabi is acutely aware of. To adhere to the time frame, the Government of Abu Dhabi invited Aldar Properties PJSC, the leading developer in the Emirates, to form Abu Dhabi Motorsports Management (ADMM LLC), a joint venture in charge of constructing and operating the circuit. ADMM has one of the best brains in the business, Richard Cregan, as its CEO. Adjoining an exclusive marina, the circuit offers a stunning backdrop to the on-track action. It is also one of the best places for Formula One enthusiasts to watch the race as it features the only hotel in the world — the Yas Hotel — to have a Formula One track running through it. The circuit design is another innovation which ensures at least 30 per cent views of the track to all grandstand spectators, which is more than any other Formula One track in the world. Leveraging opportunity Before becoming a part of ADMM in 2008, Mr. Cregan had been with Toyota as the General Manager and Team Manager of Toyota F1. As a passionate and hard-working individual who has spent his entire life contributing

It is also one of the best places for Formula One enthusiasts to watch the race as it features the only hotel in the world — the Yas Hotel — to have a Formula One track running through it.

to Formula One, Mr. Cregan’s equity should go a long way in Yas Marina’s ascension to the title of the mostsought after race track in the world. In any case, Mr. Cregan is determined to do that and more. “Yas Marina Circuit is going to put Abu Dhabi on the world stage in terms of motorsport. The F1 is obviously for us the main event, going out to an audience of over 600 million people, it’s up there with the Olympics and the FIFA World Cup, but there will be many other events at the Circuit. We have a drag strip for drag racing, the circuit will be used for 6-8 major events per year including other major motorsport events,” he says. The Yas Marina Formula One circuit is just one of the many attractions on Yas Island. It will also feature the first ever Ferrari theme park — Ferrari World Abu Dhabi — which will be the world’s largest indoor theme park and will house the world’s fastest rollercoaster. The commercial parks and the island’s fifteen-minute distance from the Abu Dhabi airport also make it an ideal business destination. The Government of Abu Dhabi and Mr. Cregan see the Yas Marina Formula One circuit, with all its facilities, as a major draw for tourists as well as business travellers. It is also expected to enhance Abu Dhabi’s image as one of the best business and leisure destinations in the world. n

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Ads in motion

Inmotion’s innovative combination of advertising and reasonably-priced car rental service has helped the company make headway in Mr Giacomo Bernadelli Abu Dhabi. Managing Director, Inmotion Giacomo Bernadelli

Managing Director, Inmotion

ften a great business idea comes out of trying to find one solution to fill in the gaps in the market. Giacomo Bernadelli saw the need for a reasonably-priced outdoor media space provider and also a car rental service which didn’t cause much damage to the wallet. From this unique position, Inmotion was created in May 2008. It has only been in existence for a little over a year but has created ripples in the outdoor advertising space. The Abu Dhabi-based company has attracted brands like Virgin, Lacoste, Mountain Dew, Tropicana, Sunglass Hut and Homes ‘R’ Us. Simple Idea Inmotion’s idea was simple. They came out to provide advertisers visibility through their fleet of cars and also provide people a reliable and cheap car rental service. So a tourist to Abu Dhabi can hire their car for DHS10 per day. “With the influx of foreigners into the country, the demand for car rental in Abu Dhabi is very high, and the whole initiative was just waiting to be taken upon. These are ideas that are implemented in many other places in the world, and they were just waiting to be a success here in the Emirates,” Bernadelli, the Managing Director of Inmotion says.

But car rental is not the only service Inmotion provides. They also have to keep the brands advertising with them in mind. And to be an effective medium, Bernadelli and his team have to implement some rules. “Our services are pretty easy and simple. Customers can enter our stores and register for a car and get one on the spot. We don’t ask for registration fees or credit card information. Registration on our system is all that is required. Our cars cost DHS10 per day. In return, the client adheres to some conditions. For example, the

Inmotion has attracted brands like Virgin, Lacoste, Mountain Dew, Tropicana, Sunglass Hut and Homes ‘R’ Us. client should agree that our cars are used for advertisements, and that every car rented should be driven at least 30km a day,” the Managing Director says. “Some other conditions are that cars rented in Dubai could only be driven in Dubai, and not outside the rented area, and that cars could not be rented for more than seven days. If cars were to be driven outside the areas of their rent, like on the highways, the advertisement on the cars will not be

effective, so we implement strict rules. Added to these, the client should keep the car clean,” Bernadelli adds. Broad Spectrum He adds, “We also try to coordinate the two businesses: in a sense, if an advertisement client is more interested in advertising in the Marina area, we respond by renting those cars only to people going to those areas. That way, our advertisements are targeted.” But it was not always smooth sailing for the company. There was the initial worry that the Middle East people will not warm up to the idea of renting cars. “When we started, we were concerned that it is not the culture of the people in the Middle East to rent cars. Our initial focus was on corporate clients wanting to advertise their products,” Bernadelli says. “We also targeted the working class, whom we thought might be willing to rent cars. But we realised that everybody was interested in the concept, especially the expatriate community working in the UAE. In terms of ‘rent a car’, the majority of the clients were primarily European or American. Though at the moment, we are getting interest from a lot of local people. So we have people from all over the spectrum,” Bernadelli says. n

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Driving ahead

Ali & Sons has led the way when it comes to bringing in world-renowned automobile manufacturers to Abu Dhabi. Shamis Al Dhaheri

Managing Director, Ali & Sons

t has been three decades since Ali & Sons first appeared on the scene and yet their stock seems to be rising with each passing year. Ali & Sons Company LLC was established in 1979 and began its march to the top by providing quality services to the oil and gas industry. However, this was only the beginning. Under the dynamic leadership of the Chairman, His Excellency Ali bin Khalfan Al Mutawa Al Dhahry, Ali & Sons diversified its activities and operations. Diversified growth Today, Ali & Sons is an established operator in the automobile, oil and gas, retailing, contracting, property management, manufacturing, information technology and merchant banking sectors. The group has 19 subsidiaries operating in more than nine sectors and its name is associated with some of the most renowned brands in the world. Prestigious names such as Audi, Volkswagen, Porsche and Sulzer have worked with Ali & Sons to make headway into the UAE markets. But despite the slew of international names, Ali & Sons has a proud list of their own brands. These have gained significant market share by building on the groupâ&#x20AC;&#x2122;s strength and quality of products and services. These brands

include Amwaj Jewelry, Sidra Village and Eurostar Rent-a-Car. The latest feather in their cap is the tie-up with Audi. Ali & Sons Motors Co LLC is the official Audi importer for Abu Dhabi and Al Ain and has been for nearly 20 years. The current model range at Audi Abu Dhabi comprises the A3, A3 Sportback, A4 Saloon and Cabriolet, the A5, A6 and S6, TT Coupe and Roadster, the A8, S8, the Q7 and the R8. But Audi plans to double the number of models in its portfolio. The growing range as well as increased sales of core models has significantly increased their presence in the Abu Dhabi and Al Ain markets with sales up nearly 20 per cent in 2008. The leadership of Shamis Al Dhaheri, the Managing Director of Ali & Sons LLC that has brought rich rewards.

values and principles, attracting and retaining talented people and executing a disciplined and consistent business process. n

Prestigious names such as Audi, Volkswagen, Porsche and Sulzer have worked with Ali & Sons.

Looking ahead In the future, the Ali & Sons group will continue to provide its clients,and partners with superior products and services. This will be accomplished by building an organisation with strong

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Forward march

Launched in 2006, Vision Hotel Apartments’ success comes from constantly adapting to change according to the needs of tourists and business travellers. Richard Haddad

General Manager, Vision Hotel Apartments

ast becoming the most soughtafter tourist and business destination in the UAE, Abu Dhabi has very unique needs. And one of those is building structures that target tourists arriving on business but staying a little longer to take in the sights of the city. Vision Hotel Apartments is the premier option for the sure-footed

business traveller since 2006. The fact that the hotel was started much before Abu Dhabi’s emergence as a Middle East hub, shows the foresight of the management. Richard Haddad, General Manager of the property considers the Vision Hotel Apartments his biggest achievement. And his forwardthinking attitude has helped make

Vision the foremost brand in the service apartment sector. A 21-floor tower with 126 wellappointed and luxurious suites, Vision Hotel Apartments is located in the middle of the Central Business District of the city. The hotel understands the needs of business travellers and has adapted the service apartment concept to suit all types of guests. n

A royal experience With its world-class services and unique design, Le Royal Meridien has withstood the global economic crisis and stands out in the heart of Abu Dhabi. Imad Diab

General Manager, Le Royal Meridien

n the heart of Abu Dhabi is a unique structure. Meridien is not only a trusted and reputed name in the hotel industry but also renowned for innovating when it comes to design. And the tradition continues with Le Royal Meridien, Abu Dhabi. Located on the beautiful Arabian Corniche, the hotel is in close proximity to the business and commercial districts.

The hotel provides everything that an international traveller wants — almost all rooms have a stunning view over the Arabian Gulf and the hotel also offers a variety of prime dining and recreational facilities. The pièce de résistance is the revolving rooftop restaurant — Al Fanar. “We have Italian, French, Asian, Irish, and international cuisine. We

also have chefs from four different countries working here,” says General Manager Mr. Imad Diab. Mr. Diab stressed that despite the economic crisis, the hotel has actually seen an increase in revenue. “Our current occupancy (85 per cent) is less than our occupancy last year, though our actual revenue is 14 per cent higher than last year,” he beams. n

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LEADING the way

The recently refurbished Crowne Plaza hotel in Kuwait offers a unique blend of luxury and wellness under the able leadership of its Director of Operations. Hani Kafafi

Director of Operations, Intercontinental Hotels Group

ith its three hundred rooms and suites, one of the largest leisure areas in Kuwait and the widest variety of food in the city along with a spa and aqua-tonic pool, it is little wonder that the Crowne Plaza hotel has been acknowledged as one of the finest hotels in Kuwait by business and leisure travellers alike. The hotel is owned by the Intercontinental Hotels Group, whose experienced Director of Operations, Hani Kafafi, is in charge of the hotel. In capable hands Mr. Kafafi has a wealth of experience behind him and has thorough knowledge of the hospitality industry, which he puts to good use in the dayto-day operations of the hotel. Mr. Kafafi has been with the group since 1979, operating the Holiday Inn, the group’s other property, at the Sphinx, Pyramids and Salalah before taking up managerial positions and being handed charge of the Crowne Plaza. “Mixing the restaurant business and the hotel business is very exciting. The restaurant business is a very fast business and you need to act with a high sense of urgency in order to prosper. I like to think fast and implement changes in many things. I am not afraid to make mistakes because that is the only way I learn. This is part of my philosophy and this is how I have

grown over the years,” says Mr. Kafafi. Mr. Kafafi’s philosophy has done wonders for the hotel, which houses eight speciality restaurants catering to almost 2500 people every day. So, while the Al Ahmadi International Restaurant offers the biggest and best selection of buffets in the city with an open kitchen and different world cuisines every night, the Sakura JapaLeanese Restaurant provides a taste of authentic Japanese cuisine with a classical sushi bar, teppanyaki counter, and five private tatami (dining) rooms. The Al Noukhaza Seafood Restaurant, the Ayam Zaman Lebanese Restaurant, the Shabestan Iranian Restaurant, the Rib Eye Steak House Restaurant and the Viaggio Italian restaurant cater to people with different tastes and allow the guests to taste something different whenever they are at the hotel. Wellness and luxury The hotel has been renovated recently with all the rooms and suites having been refurbished with all possible modern amenities. The Crowne Plaza Kuwait now also boasts of a

The most important thing for the group is its management culture.

leisure space of 10,000 square metres housing a comprehensive range of leisure facilities, providing guests an environment of well-being, relaxation and enjoyment. The 24-hour Nautilus Fitness Center includes gymnasiums for kids and ladies, a squash centre, cardio area, personal training centre and an outdoor swimming pool. Mr. Kafafi believes that the aquatonic pool is a major draw for leisure and business travellers alike. “There are only six aqua-tonic pools in the world, and one of them is here. The aqua-tonic pool is a 650 square metre indoor pool with four different water temperatures. In-pool services require clients to spend one and a half hours in the pool where every single muscle is massaged and they lose five hundred calories,” he says. The presence of the fitness centre, spa and aqua-tonic pool coupled with the restaurants and refurbished rooms make this hotel an ideal place to stay. Yet, according to Mr. Kafafi, it is the staff and the experience of the stay that make people come back to them, “The most important thing is our management style and culture at the Intercontinental Hotels Group. We do the right thing no matter the situation may be and we care about our customers. Above all, we recognise people’s ability and let you know that we appreciate every effort you make.” n

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Flying high

It has been at the top of the pile for nearly two decades, but the Aviation Club Dubai is not resting on its laurels. Gerard Kearney

General Manager, Aviation Club Dubai

t is no easy feat staying at the top for nearly two decades and Aviation Club Dubai with its unique fusion of world-class hospitality, sports and leisure facilities has managed it with great aplomb. Owned and managed by Dubai Duty Free, it was opened in 1991 under the patronage of His Highness General Sheikh Mohammed Bin Rashid Al Maktoum. Every February, it becomes the centre of attention in the mega city, as it plays host to some of the biggest tennis stars in the world. The Dubai Tennis Stadium, which is the venue of the prestigious Dubai Tennis Championships, has seen the the likes of Roger Federer, Andre Agassi, Goran Ivanisevic, Venus and Serena Williams and Lindsay Davenport play. The stadium has also been voted the “best venue” by none other than the players for three consecutive years. Besides sports, the stadium has hosted big-name concerts, with artists like Sting, Geri Halliwell, Gloria Gaynor, The Gypsy Kings and Enrique Iglesias performing at the venue. But there is more in store. Aviation Club is planning to expand the stadium in association with the Dubai Sports City. But the piece de resistance will be the new hotel coming up in summer 2010. Gerard Kearney, the General Manager of the Aviation Club elaborates, “This hotel is going

The hotel will have all the world-class facilities that are associated with a luxury five-star hotel. to have approximately 295 rooms and we’re expecting to be able to open it in June or July next year. It would be an important landmark in the city by the time it’s finished. There are certain restrictions because this area is very close to the airport, so there will only be nine floors. But, rest assured, it will have all the world-class facilities that are associated with a luxury five-star hotel.”

Besides the hotel, the sports project is also very close to Mr. Kearney’s heart. “We’re in partnership with Dubai Sports City at the moment, where we’re going to build a new tennis stadium as the existing capacity is too small for the future. We’ve had very good usage of it over the past 13 years. And we’re actually working on 15000 seats at the moment with Sports City. Along with that we will also open an Irish Village at that location and pretty much mirror what we have done successfully here on this side,” Mr. Kearney adds. This constant endeavour to improve an already world-class facility bodes well for the company’s future. n

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