Gulf Insider July 2016 by Gulf Insider Media

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Whatâ&#x20AC;&#x2122;s the future for Bahrain Tourism? Gulf Insider spoke to industry experts about Bahrainâ&#x20AC;&#x2122;s potential for becoming a destination for international tourism.

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Can Bahrain Really Create Economic Diversity? Business

CAN BAHRAIN REALLY CREATE ECONOMIC DIVERSITY? Business

What’s the Future for Bahrain Tourism? Life

Bahrain Summer Festival Affairs

Manama Shapers: Hala Al Khalifa Property

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Publisher & Editor in Chief - Nicholas C. Cooksey Editorial - Abeer Saeed Parkar

Rising Costs There was a time when employers covered a majority of expenses for the expat worker – accommodation, car (and fuel), school fees, return air tickets to visit home once a year, health insurance and the likely bonus, (or bonuses). Subsidized prices elsewhere kept living costs unnaturally low. Now that subsidies are disappearing across the Middle East, expats have started to feel the crunch. While many high-income expats with generous allowances probably never noticed these figures before, they probably are now as their companies revise expenses. Low-income expat workers however have been living paycheck to paycheck the whole time they were here. Their apprehensions are evident seeing long queues at ATMs and money exchanges at the beginning of every month. The high-income expat workers who are used to lavish lifestyles can adjust to spend less, but what are the expats who were already living on a limited budget supposed to do?

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Arabia’s Intelligent Magazine Established since 2004, Gulf Insider is the multi award winning Arabian business and current affairs magazine that also covers property and expat news, interviews, car reviews, travel features, even a bit of art and fashion.

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CAN BAHRAIN REALLY CREATE

ECONOMIC DIVERSITY?

There is a sense of mixed views amongst the people of Bahrain about the country’s economic outlook as a result of subsidy cuts, increased cost of living and other deterrents that may prevent investors from coming to the Kingdom.

hile some believe current fiscal pressures are a good stimulus to boost economic diversity and improve business friendliness, others share they are more pessimistic now than ever before.

Are Subsidies Bad? Dr. Hanan Naser, Assistant Professor Economics at the Arab Open University Bahrain, explained that subsidies were rampant in the Gulf region mostly to maintain a peaceful social lifestyle, given the benefit of abundant wealth that came

Gulf Insider July 2016

with high oil prices. Blanket subsidies were an easy way for Gulf nations to share that wealth with their own people (nationals) as well as expatriates. The GCC, including Bahrain, became renowned for its low cost of living and tax-free lifestyle, until of course, the plunge in oil prices since June 2014. Dr. Naser explained that such low prices add pressure to both local and international markets. “Although the cost of producing one barrel of oil costs around $56, it was being sold locally at cheap prices, which stands at $28 per barrel, approximately. On the other hand, it was sold internationally at average prices

Dr. Hanan Naser, Assistant Professor in Economics Arab Open University Bahrain

between $78 - $80 per barrel. Taking into account the level of local consumption, which increased to 10 million barrel/year, the gap in revenue, which is subsided by the government is huge, especially after the sharp drop in oil prices.” The current scenario doesn’t leave room for revenue which has decreased by 60 to 70% since last year; it affects the government’s oil-dependent budget and is generally harmful for the economy, especially since prices are predicted to remain the same for another five years according to Dr. Naser. She explains this can be a problem if there is no decrease in government

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spending and oil consumption continues to rise– Bahrain currently uses 10m barrels/year locally and this figure is expected to go up. “Maybe the government’s spending - including the support of subsidies towards goods and services that were not needed must be revised,” Dr. Naser continues. Bahrain’s aims to reel in revenues of BD400m by introducing higher taxes on certain products (such as alcohol & tobacco) and cutting subsidies, which accounts to 20% of state expenditure. “In 2009, subsidies for meat accounted to BD20m, BD1m for chicken and BD14m for other staples,” she shares, “This is a huge amount only for food.” In addition to this, fuel subsidies ranged from 130 to BD189m while electricity & water cost BD100m. Dr. Naser explained that the framework of subsidies has not been structured well from the start and included non-oil subsidies, which can be difficult to support, as is being proven now.

Sovereign Wealth Funds “The more we moved in this direction, the more we went into deficit, eventually running out of surplus wealth,” she

illustrates. Dr. Naser points out that the deficit had become evident in 2008 when the country’s surplus started to decrease. She also mentions that until 2006 there was a lack of transparency around the government’s distribution of surplus revenue, stating that many countries save it separately in sovereign wealth funds, which is a capital protected method of investing in gold, assets, equities and stock markets. Dr. Naser shares Dubai’s and Qatar’s example in this matter which redirected surplus revenue as loans to Singapore and Malaysia for infrastructure schemes, eventually yielding higher returns for themselves. She firmly believes sovereign wealth funds are a great approach to creating economic diversity. She also mentioned that since June,

In 2009, subsidies for meat accounted to BD20m, BD1m for chicken and BD14m for other staples.

2006, the transparency and plans to effectively manage the surplus of revenues in Bahrain have progressed significantly/ Bahrain’s Sovereign Wealth Fund is Mumtalakat, established in June 2006 as an independent holding company to actively manage and grow a diverse portfolio of commercial assets. Since January this year, Mumtalakat has displayed continued efforts to grow and diversify its holdings across various sectors and regions. In January it announced the development of a US$ 40 million copper manufacturing facility in the Kingdom of Bahrain, which will create over 200 jobs and make a positive contribution to the local economy. Two months later, Mumtalakat acquired a 49% equity stake in Asturiana de Aleaciones S.A. (ALEASTUR), a Spanish-based manufacturer of aluminum grain refiners and master alloys, a move that will allow Bahrain to leverage its extensive aluminum industry expertise and strong regional network to enable ALEASTUR to tap into new export markets. Soon after, acquisition of a minority equity stake in Gulf Cryo, the leading regional manufacturer, distributor and service provider of industrial gases based

Gulf Insider July 2016

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in Kuwait, marked Bahrain’s fourth investment in the industrial sector. And in May, Mumtalakat announced its partnership with Regent Properties to acquire interest in a portfolio of highquality commercial real estate assets in the US. It is worth noting that in this regard, the Gulf States has made clear progress in the level of transparency on sovereign funds investments, according latest report on sovereign wealth funds around the world by the US “State Street” financial services company. The Arab Gulf states have shown a significant cooperation during the preparation of the report to give data about the performance of sovereign funds and their investment strategies and management of risks surrounding such investments, which increases the confidence of countries and companies in those funds.

Will Expats Pay the Price? Coming back to Bahrain’s rising living costs, Dr. Naser expresses concern over the ongoing fiscal reforms and harsh cut in subsidies, stressing that removing them within a span of one year spares little room for induction and doesn’t give the economy enough time to adopt new prices. The price of 95-octane gasoline (Mumtaz) was adjusted to 160 fils per litre in January and the price of 91-octane fuel (Jayyid) at 125fils per litre. According to the Bahrain Economic Quarterly report published by the Bahrain Economic Development Board in March, apart from boosting government revenues, the new prices are expected to enhance the efficiency of energy use. Furthermore, the government has increased the duty on tobacco from 100% to 200%. The Ministry of Finance previously reported that 100% tobacco duty has contributed BD59.52m to the government’s revenues in 2013. The US-Bahrain Free Trade Agreement (FTA) however, exempts American brands of alcohol and tobacco from the 200% tax surge. New electricity and water tariffs came into effect in March for the industrial and commercial sectors, Bahrainis with more than one household, as well as expatriate

Gulf Insider July 2016

residents; the first step of a four-year program which will gradually increase tariffs for different usage categories until it reaches 29 fils for power and 750 fils for water in 2019. However, there have been reports of Bahrainis registering additional residences under names of family members to continue receiving utility subsidies and not having to pay more for water and electricity. The new rule allows Bahrainis subsidized utility prices for their primary residence. Dr. Naser explains this puts Bahrain’s 400,000 resident expatriates in a difficult position; 300,000 of whom fall under the low-income labour category. “We can’t live without them,” she points out, stating that many businesses and families in Bahrain are dependent on foreign workers. “Organizations will have to increase their salaries, otherwise

May be the government’s spending including the support of subsidies, towards good and services that were not needed must be revised. we’ll suffer.” Dr. Naser mentions that the current fiscal strategy may solve deficits, but can be problematic for society. She indicates that since industries are also being affected by the new tariffs, their production is expected to decrease, while expenses remain high, creating a trickle-down effect that puts the country in a more critical position. She explains that even if the salaries for expatriates are increased, there will be a decrease somewhere in their allowances or benefits to make up for the overall surge of living costs affecting everyone on the whole, nationals and expats included.

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Inflation Temporary “If the price of meats is increased, it will also affect the price of bread and rice. You cannot serve one without the other. Why will one manufacturer keep their price low while another’s more expensive,” says Dr. Naser, explaining there’s an inter-connection between the various sub-sectors of an economy. According to the latest figures released by the Information & e-Government Authority, the Consumer Price Index (CPI) in March 2016, has increased by 3.3%, compared with the same period of 2015. It jumped 0.5% just between January and March this year. The main upward contributions come from the “Housing, Water, Electricty, Gas and other Fuels” group (up by 4%), “Alcohol Beverages and Tobacco” (up by 27.9%), “Food and non-alcoholic beverages” (up by 3.9%) and lastly, “Transportation” (up by 13.1%).

However, the Bahrain Economic Quarterly report published by EDB claims that the “impact of subsidy reforms on inflation is likely to be temporary.” According to Dr. Naser, inflation is worse than being unemployed. Her observations agree with basic economic theories that advise against raising costs when a country is in deficit. “In 2011, the average monthly income of households in Bahrain was BD500, for a six members family any amount lower than BD337 would be considered below the poverty line back then.” She mentions another research should be conducted to take current prices into account, adding that 116 Bahraini families below the poverty line applied for government support in 2013. She predicts this number will increase as more families apply for support now. That being said, the latest results from the Labour Market Regulatory Authority (LMRA) show that employment

rose by 5.5% in 2015. Meanwhile, unemployment stood at 3.4% and is considered low by historical standards.

Signs of Growth According to EDB’s quarterly report, substantial growth in 2015 in Bahrain’s non-oil sectors such as, Social and Personal Services (dominated by education and healthcare) growing by 6.9% year on year, Construction (6.4%), Hotels and Restaurants (5.9%), Transportation and Communications (5.9%), as well as Manufacturing (4.1%), are signs of economic resilience. “It might look like it’s too late to diversify now, but it’s better than nothing,” Dr. Naser shares. She advises it’s critical for the government to accommodate foreign investments in Bahrain and also support entrepreneurship. She commends Tamkeen for helping small to medium businesses; however she calls for all ministries to work together in creating an informative workforce by increasing transparency and providing clear instructions for investors on how to establish business. Bahrain comes first in the region in the 2016 Index of Economic Freedom and ranks 18th globally as the freest economy. Dr. Naser explains that Bahrain’s skilled workforce, rules & regulations such as 100% foreign ownership and its prime location at the center of the GCC makes it an ideal place to do business, but the private and public sector need to work more closely together. “We have all the attractions to be a business friendly environment, but we are poor in providing initial information and following up within the creation of a business.” Dr. Naser believes Bahrain’s will remain an affordable option for foreign investors once value added taxes are introduced, since its operation costs will comparatively be the lowest in the region.

According to local reports, the Sijilat Commercial Registration Portal launched in May is supposed to speedup administrative procedures and will supposedly allow investors to establish a business in less than a day.

Gulf Insider July 2016

Business

What’s the future for

Bahrain Tourism? Gulf Insider spoke to industry experts about Bahrain’s potential for becoming a destination for international tourism.

I Hameed Al Halwachi

Gulf Insider July 2016

Jerad Bachar

n an interview with Gulf Insider, EDB’s Executive Director of Tourism and Leisure, Jerad Bachar, said that with the increasing cost of living, travel patterns of consumers in the Middle East are expected to change as more families look for vacations closer to home instead of jetting off for long haul vacations. He shared there are currently projects worth $32b supported by the GCC Fund, Bahraini government and the private sector which are largely focused on building the country’s sub-sectors that support the tourism industry and making Bahrain accessible through a more expansive airport and road network, such as the second causeway linking Bahrain and Saudi Arabia. Reflecting increased demand, Bahrain’s tourism market which currently comprises around 6% of GDP is hoping to reel $1bn in revenue by 2020. The Economic Development Board views the Kingdom’s tourism sector as a key area of growth and has been working towards promoting Bahrain as a destination for tourism investments. Bahrain recently launched a new tourism identity under the slogan of ‘Ours. Yours. Bahrain.’ as part of plans to further diversify

Business

the national economy away from its dependence on oil. The new identity was unveiled by the Bahrain Tourism and Exhibitions Authority (BTEA) in April. Jerad Bachar commented during a roundtable discussion at the Arabian Hotel Investment Conference (AHIC) 2016 in Dubai; “With the greater tourism community, we aim to increase the country’s competitiveness and economic contribution to the GDP.”

Positive Signs for Bahrain? According to the World Travel & Tourism Council (WTTC), Travel & Tourism is already an important sector for the Middle East region. In 2015, it generated US$194.5 billion or 8.0% of GDP and supported nearly 6 million jobs, which is 7.8% of total employment. According to WTTC research, government spending on Travel & Tourism in the Middle East is set to grow by 2.6% in 2016, and 3.5% per year over the next ten years. Capital investment in the sector is forecast to rise by 5.2% this year and 5.4% per year to 2026. Manama was named the “Capital of Gulf Tourism 2016” in January by the tourism ministers of the GCC.

More Spaces to Accommodate Visitors According to a report from the Ministry of Industry, Commerce and Tourism, events associated with the kingdom’s new status could increase the volume of tourism between Bahrain and the rest of the GCC by 10-15% in 2016. Saudi travelers, which account for around 70% of all visitors, enjoy direct access to the kingdom via the King Fahad Causeway. Meanwhile, the Oxford Business Group forecasts Bahrain’s tourism to grow by 4.9% annually between 2015 and 2025, with hotels and serviced apartments, known as “aparthotels” as a segment growing at a compound annual rate of 15.2% and 11.4%, respectively, between 2013 and 2018. CBRE’s latest property report particularly highlights development in the hospitality sector, mostly in the 5-star and luxury segment, with significant openings lined up this year. Downtown

Rotana, Wyndham Grand at Bahrain Bay, the Marriot Residence Inn at Water Garden City, Ibis in Sanabis and Ramada City Centre opposite City Centre mall are all projects either completed or in the pipeline. Diyaar Al Muharraq Development recently launched Al Marassi, wherein Emaar Hospitality Group is scheduled to build five new hotels by 2018. Diyar al Muharraq also announced the launch of the second phase of its Al Bareh seafront development, composed of seafront residential plots dedicated for high-end villas, residential plots within walking distance to waterfront parks, and residential investment plots overlooking the main road designated for the

“Bahrain has great potential to become a beach destination. Coordination with the private sector will result in the outcome of increased public beaches as more resorts are developed.” construction of multi-storey buildings. Plots are also being offered for sale on a freehold basis to all nationalities. Projects such as Bin Faqeeh Real Estate Investment Company’s mixeduse property Layan and the King Abdulla Medical City, managed by Arabian Gulf University (AGU), are two more examples of headway in the private sector.

New Identity to Promote Bahrain Tourism Bachar claims Saudi Arabia and Kuwait are being targeted as the biggest base

for regional tourists, while promotion in countries like China and India will attract international visitors. Six tourism offices located in the UK, France, Germany, India, Russia and one GCC country will be opened by the end of this year to promote Bahrain as a destination. “The offices will create a permanent presence in those countries and help build source markets,” he continues. “Developments such as Dragon City Mall and the Avenues, the extension of City Centre and the ongoing airport expansion will change Bahrain’s tourism sector by 2020,” Bachar believes. When asked why the sector remained underdeveloped up until oil prices fell, he explained there are many countries that have just started to build upon the potentials of their tourism sector, and said; “Government agencies are willing to work with us to remove barriers and improve the regulatory framework that supports tourism.” One example of this is the recent adjustment of visa on arrival fees, reduced from BD25 to BD5 for a single-entry visa valid for two weeks and BD25 for a multiple-entry visa valid for three months, whereas the UAE makes no similar charge for tourists entering their country.

Beaches, Cruises & History Gulf Insider asked why Bahrain, being an island, lacks decent public beaches. Bachar told us that he believed that beaches are “usually resort products”. However, as local reports suggest, the insufficient use of Bahrain’s beaches and its untapped geographical potential has been “considered” by the BTEA and it is claimed that this will be one of the main focuses of its new tourism identity. “Bahrain has great potential to become a beach destination. Coordination with the private sector will result in the outcome of increased public beaches as more resorts are developed.” Bachar explains that the development of smaller islands situated around Bahrain, which are currently dormant assets, is a huge opportunity for the tourism and maritime industries to work together in supporting the country as a beach destination. Meanwhile, plans to upgrade the Khalifa Bin Salman Port are underway to support

Gulf Insider July 2016

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more cruise ships and provide facilities for visiting yachts. “We have a product that’s marketable but unknown; we need to create awareness about it.” Bachar mentions Formula One, Spring of Culture and Art Bahrain as great starting points for tourism. BTEA recently announced a two-year plan to promote Bahrain as a wedding destination. Meanwhile, Edamah, the real estate arm of Bahrain Mumtalakat Holding Company, has announced a $928m investment to transform Hawar Islands into an eco-friendly destination with wellness resorts, a bird research centre, a heritage market and restored 100-year-old Hawar mosque. Other plans include a new exhibition centre with a 5000 visitors capacity in Sakhir, close to the Bahrain International Circuit, and Bahrain’s biggest integrated sports stadium featuring a football pitch, an underground shopping complex and Cineplex.

What about Rising Costs? “We are optimistic, not delusional,” Bachar replied when we asked him about businesses suffering in Bahrain 16

Gulf Insider July 2016

“Occupancy in four-star hotels has dropped from 65% in 2014 to 35% this year, slashing revenues by almost 50%.” due to higher costs. He acknowledged that some hotels are struggling due to increased alcohol taxes as well as municipal fees. “These factors do affect the tourism sector, but they won’t be a deterrent to its overall growth in the long-term. These reforms don’t put us at an uncompetitive state with other markets in the Gulf.” He adds it’s all the more reason now to boost Bahrain’s tourism industry and push for economic diversification. Hameed Al Halwachi, Chairman of the the Bahrain Four Stars Hotels Committee, told us that occupancy in four-star hotels has dropped from 65% in

2014 to 35% this year, slashing revenues by almost 50%. “Hotels are busy when companies organize conferences and exhibitions. The taxis, airport, malls and other semi-sectors subsequently pick up business too.” But he says that due to a low number of conventions, Bahrain’s hotels haven’t been able to change their average room rates more than the BD35 to BD40 range. Increased utility costs and alcohol taxes means many four-star hotels are now planning for considerable job cuts. Meanwhile, hotels declined to comment on the subject of alcohol taxes when approached by Gulf Insider. That being said, Al Halwachi told us that he is positive about Bahrain’s new tourism identity and the various initiatives underway. “We are at point zero and facing a delayed start, but this is the right identity for Bahrain. It’s a longterm strategy and I’m assured business will generate in five to 10 years.” He also advises more events to be organized surrounding Formula One to increase average stay from one to two nights, to three to four nights. He also urges the government sector not to increase prices further, especially for those groups that affect the hotel industry.

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NOT TO BE MISSED The Voice Kids Tour July 7 at 7 pm Following the runaway success of Ahla Sawt, the Middle Eastern version of the hit American talent television show The Voice Kids, the show’s grand winner Lynn ElHayek (Lebanon) and the five other finalists, Amir Ammoury and Zein Obeid (Syria), Mirna Hanna (Iraq), Ghady Bchara (Lebanon), and Jouwairya Hamdi (Egypt) join forces in a whirlwind tour across a number of countries for the very first time in the history of the program.

Bahrain

Summer Festival 2016 Now in its eigth year, BSF is an annual festival organized by the Bahrain Authority for Culture and Antiquities in the Kingdom of Bahrain and will run from 7th July to 7th August this year.

eld under the slogan “Your Destination Bahrain”, the Bahrain Summer Festival this year will be filled with regional and international musical and theatrical performances along with artistic activities and creative workshops at Nakhool City. The annual Bahrain Summer Festival has become one of the most anticipated events throughout the region due to its reputation of exciting lineups of live shows from regional and international performers which focus on multi-cultural family-friendly entertainment. Within the festival comes the highly anticipated Nakhool City, which will offer a variety of children’s activities and workshops, located in the tent at the Bahrain National Museum from 7th July

– 7th August. Nakhool and Nakhoola, the adventurous duo and faces of Nakhool City, will welcome all families and friends daily from 4 pm to 9 pm throughout the festival. Along with the company of the beloved duo come exciting activities and workshops for all ages, open to the public. The Bahrain Summer Festival, organized by the Bahrain Authority for Culture and Antiquities, will offer locals and tourists an exciting and entertaining lineup of events, which will start from 7th July up till 7th August, taking place at the Cultural Hall near the Bahrain National Museum.

For more information please visit www.bahrainsummer.bh

Najat Al-Saghira - Legacy of a Legend July 21 at 8 pm A moving ode to one of the towering figures of 20th century Arabic music Najat Al-Saghira, a singer and actress whose illustrious careers spanned over six decades, during which she left a legacy of well over 200 recorded songs and several wellknown Egyptian films.

Flamenco Vivo - Luis de la Carrasca August 4 at 8 pm A wonderful artistic voyage led by the inimitable flamenco dancer and choreographer and singer Luis de la Carrasca and his company “Flamenco Vivo”. Under his direction and guidance, the group, which is comprised of young French and Andalusian dance and music talents, made an indelible mark on the world stage over the past two decades by constantly breathing new life into this traditional Spanish art form.

Gulf Insider July 2016

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Bahrain Moves up

20 Ranks as Most Expensive City Mercer’s Middle East 2016 Cost of Living Survey shows Bahrain went from the 91st rank to the 71st as the world’s most expensive city, as did other cities in the region.

he Middle East has multiple locations situated in the world’s top hundred, with a strong showing primarily from the GCC countries. Several cities experienced a jump in the rankings, as they are pushed up by other locations’ decline, as well as the strong increase for expatriate rental accommodation costs, particularly in Abu Dhabi and Jeddah. Manama, Bahrain sees its ranking at 71st, differing from 91st last year; Riyadh is the 57th most expensive city in the world, a significant difference from its 71st place last year; Doha is 76th, up from 99th last year; Muscat comes in at 94th, jumping from 117th last year; Kuwait City is 103rd, also climbing from 117th position in 2015; lastly Jeddah is 121st, a change from 151st last year.

Gulf Insider July 2016

Dubai and Abu Dhabi have been ranked the most expensive cities to live in the Middle East, according to the survey. The global rankings see Dubai as the 21st most expensive city in the world, a rise of two places in comparison to last year, with Abu Dhabi, 25th in world, changed from 33rd last year. “These rankings uniquely combine day-to-day expenditure on goods and services such as food, clothing and

BD176.67

Total utility bill in 2019 for three-bedroom villa.

transportation, with rental prices. While prices of most goods and services are considered to be cheaper in Saudi Arabia compared with Europe, it is the expatriate rental market that pushes cities like Riyadh and Jeddah up the ranking,” said Rob Thissen, Talent Mobility Consultant at Mercer Middle East. “What this means is that once again, cities in our region have become more expensive to send people to, with expatriates expecting increased cost of living and housing allowances. To the contrary, when sending staff out of the Middle East, multinationals have to be wary that cost of living allowances are likely to go down, and have to clearly explain and communicate this to their staff to avoid lengthy discussions.” The Consumer Price Index released

Life

by Bahrain’s Information & eGovernment Authority in March 2016 shows “Housing, Water, Electricity, Gas and other Fuels”, “Alcoholic Beverages and Tobacco”, “Food and non-alcoholic beverages” and “Transportation” as the main groups causing an increase in Bahrain’s CPI, evidently due to subsidy cuts. The CPI or inflation between March 2015 and March 2016 is 3.3%, economists predict this figure to rise further. According to Dr. Hanan Naser, Arab Open University, rising living costs will also be reflected in the education sector and school fees. (Table 2 shows the annual fees of a prominent British school in Bahrain have jumped drastically between 2015 and 2016.) On a similar note, in January, MP Jalal Kadhem, the parliament’s financial and economic affairs committee vice-chairman, voiced concerns over expat children studying for free at government schools and proposed basic fees to be introduced for non-Bahraini students. He told Gulf Insider that such tax proposals for expats and the private sector in Bahrain could bring in $1 billion (BD400 million) in extra government revenue. Starting this March, subsidies for utilities were gradually lifted as part of a three year campaign that will completely dissolve subsidies by 2019. However, these new rules apply only to expat residents, Bahrainis with more than one household and large companies and industries; Bahrainis will continue paying at subsidized rates. Taking average consumption for a flat to be 3,600 units for electricity and 62.5

units for water, the bill would typically cost BD32.4 for electricity and BD5 for water, before subsidy cuts. But by 2019, the increase in utility bills of a small two-bedroom flat will be BD104.4 and BD46.9 respectively, totaling BD151.3. According to the new tariffs from March this year, the electricity bill for a two-bedroom flat increased to BD46.8 (3600units x 13fils). Next year it will be BD64.8 (at 18 fils/unit), and in 2018 it will be BD82.8 (@ 23 fils /unit). In 2019, this would become BD104.4 (at 29 fils/unit). This means electricity tariff will triple compared to the current tariff, over the duration. Similarly taking the case of water, currently the average tariff for a two room flat is BD5 (@80 fils/unit) with the average consumption of 62.5 units. From March it increased to BD12.5 (200 fils/ unit). In 2017 it will be increased to BD18.8 (300fils/unit) and in 2018 it will be BD31.3 (@500 fils/unit), while in 2019 it will be BD46.9 (@750 fils/unit). Similarly, taking the average consumption for a three-bedroom villa to be 4,230 units for electricity and 72 units for water, the bill would typically cost BD38.08 for electricity and BD5.7 for

BD151.3

Total utility bill in 2019 for twobedroom flat.

Major Inflations This Year Commodity

Before Subsidy Cuts

After Subsidy Cuts

Australian lamb

BD1.5/kg

BD2.6/kg

Local chicken

BD1/kg

BD2.3/kg

Electricity (2-room flat)

BD32.4

BD46.8 (BD104.4 by 2019)

Water (2-room flat)

BD5

BD12.5 (BD41.9 by 2019)

Jayyid Fuel (per L)

100fils

125fils

Alcohol (King Robert 750ml)

BD5.5

BD7

Tobacco (Dunhill 1pk)

900fils

BD1.4

School fees per annum (Yr.8 British curriculum student)

BD4821 (in 2015)

BD5205 (in 2016)

water, before subsidy cuts. But by 2019, the increase in utility bills of a threebedroom villa will be BD122.67 and BD54 respectively, totaling BD176.67. According to the new tariffs from March this year, the electricity bill for a three-bedroom villa increased to BD54.99 (4230units x 13fils). Next year it will be BD76.14 (at 18 fils/unit), and in 2018 it will be BD97.29 (@ 23 fils/unit). In 2019, this would become BD122.67 (at 29 fils/unit). Similarly taking the case of water, currently the average tariff for a threebedroom villa is BD5.7 (@80 fils/unit) with the average consumption of 72 units. From March it increased to BD14.4 (200 fils/unit). In 2017 it will be increased to BD21.6 (300fils/unit) and in 2018 it will be BD36 (@500 fils/unit), while in 2019 it will be BD54 (@750 fils/unit). This means the electricity bill will triple by 2019, while the water bill would rise by 10 times. Gulf Insider spoke to Sameera Ahmed, an expat living in a threebedroom villa with her husband and two kids, who said she was paying around BD23 for utilities last summer, this year she’s paying around BD30 after the new tariffs were introduced. However, she mentions that her family follows good energy conservation habits such as switching the lights and fan off before leaving a room and turning the taps off when not in use. She acknowledges that such practices play a part in how much your bill will cost and shares the example of her relative who also lives in a three-bedroom villa but isn’t so wary about conserving energy. Last year her relative was paying around BD42 in utilities, this year he pays BD50. “I panicked when the new fuel and utility rates were announced. I thought there is no future here and even discussed the idea going back home. Food has become costlier too,” she shares. However alike many expats in Bahrain, she adjusted her budget and realized her family could sustain the hike. But she is concerned about people with lesser buying power; they now have to spend more towards basic necessities without an increase in their salaries.

Gulf Insider July 2016

Affairs GLOBAL SHAPERS COMMUNITY MANAMA

The Manama hub aims to contribute holistically to the ongoing social and economic development of Bahrain through cross-disciplinary and multi-stakeholder means, and by promoting innovation, entrepreneurship, sustainability and youth engagement.

Manama Shapers Interview with Hala Al Khalifa, Deputy Curator and Shaper, Project Manager – Ministry of Education

hy did you choose to be a part of the Global Shapers Community? I am quite heavily involved in the non-profit sector. From a young age, I have always been a humanitarian to the core. There is a part of me that could never simply “leave things be”. I have gotten myself into everything you could possibly imagine, 20

Gulf Insider July 2016

from beach clean ups to awareness campaigns, fundraisers and community outreach programs. My very own ongoing Messiah Complex it seems. The Global Shapers Community seemed like the perfect platform for me; a group of young likeminded individuals who were as passionate and driven as me to make a difference.

What strengths do you bring to the Manama Hub, Global Shapers Community and what are your top three goals as a Shaper? My greatest strength would be my experience in the non-profit sector as well as the strong network I have made throughout the years. My top three goals as a shaper include ensuring that we develop sustainable projects that leave a lasting impact, encouraging youth to be more involved and engaged in community service and socio-economic development, and thirdly, developing my own leadership and project management skills throughout my involvement with the hub. What are some of the challenges facing Bahrain’s education sector currently? 1. Vocational and technical education and training (TVET): there needs to be more alignment between TVET schools and the labor market. The ever changing needs of the industry and global market require a curriculum and education system to continually refine and ensure all students acquire the necessary skills

Affairs

to successfully transition into the labor market. 2. Early Childhood Education: when considering global education and international benchmarks it might be worthwhile for Bahrain to lower the compulsory starting age of attending formal education from six years of age to four or five years of age. The reason being that many children miss out on crucial years of education where the foundations of learning are made and only start school at the age of six, which is the current compulsory age for schooling. 3. Raising the Status of Teaching as a Profession: standards for teaching quality and training need to be improved to encourage more individuals into the field; recruitment of quality teachers into Bahrain schools is an ongoing and recurrent issue. Given the important role of education in everyone’s lives, the status of teachers need to be given greater importance - for the future of our children’s education lies in their hands. 4. Curriculum: in today’s knowledge based economy, curriculum development plays a vital role in improving the economy of a country. The curriculum is the essence of learning, while some parts of the Bahrain national curriculum have been reviewed in recent years, a lot more needs to be developed to achieve quality education.

Please share a past contribution towards your community. Developing the ‘Wish Youth Service Program’ (WYSP) in collaboration with the Royal Charity Organization; the program’s aim is to allow the mentoring of orphaned and disadvantaged youth by high school and university student volunteers. The program includes both community and academic mentoring, which is carried out on a weekly basis for a period six months.

My greatest strength would be my experience in the non-profit sector as well as the strong network I have made throughout the years. Who is you role model and how does he/she inspire you? My greatest role model would have to be my father, may God rest his soul in peace. He was my hero, the surgeon with the steady hands, the one who humored me when I was down and gave me the strength I needed to pursue my dreams. He was also the inspiration

behind founding and developing the Wish Youth Service Program; for when I was experiencing my sense of loss as a somewhat mature and sensible 19 year old – I thought to myself: “how would it feel like for a child to go through with this? To top it off someone who has lost not only one, but both parents?” Thus, after a couple of months of careful thought, planning, write ups and meetings came the birth of the ‘Wish Youth Service Program’ a way not only to honor my father but also to channel my emotions and feelings of loss and grief. What do you do for fun? My hobbies and interests are plenty. I am an adrenaline junkie and adventure seeker, everything from zip lining, wake boarding, kayaking and sky diving. I also enjoy music in all its forms, I play the acoustic guitar (whenever I have the time) and write creatively when I need an escape from analysis, planning and academic writing. Lately I have also picked up the lovely art of cooking, especially during Ramadan it is a great way to kill time while fasting!

The Global Shapers community is a network of hubs developed and led by people who are exceptional in their potential, their achievements and their drive to make a contribution to their communities. Learn more about The Global Shapers community. Visit www.manamahub.org

Gulf Insider July 2016

Property

Bahrain

Commercial and Residential Marketview ECONOMIC OVERVIEW Bahrain looks towards the nonhydrocarbon sector to drive growth, as economic uncertainty on an international and regional level continues, with decreased oil prices and concerns over surplus supply. According to figures released by Bahrainâ&#x20AC;&#x2122;s Economic Development Board, real GDP growth for the Kingdom was 2.9% for 2015 with the non-oil contribution at 3.9% and a contraction in the hydrocarbon sector at -0.9%. Fitchâ&#x20AC;&#x2122;s

Gulf Insider July 2016

credit rating for Bahrain was reported at time of writing at BBB- with a negative outlook. The headline figure of 2.9% is forecasted to be repeated for 2016, with oil sector proportion estimated to rise to 0.5%. The non-oil sector, which has remained relatively stable, despite the wider economic challenges has been dominated by construction, private education, health care and tourism. The Survey and Land Registration Bureau (SLRB) reports that real estate transactions dropped by 6% to just under

Development activity continues with gradually increasing appetite for investment in residential sector. BD 268.2 Million in Q1 2016, down from over BD 286.8 Million in the last quarter of 2015. However, as is shown in the construction sector growth, development activity and project planning continues to gain pace, particularly in the residential, retail and hospitality sub sectors. Reductions in subsidies for utilities and vital commodities, although not well received by residents most adversely affected, are providing a boost to government revenues.

Property

OFFICE MARKET Demand for office space in Bahrain is currently moderate, at best. Space requirements for government sectors and financial centres have decreased. Reluctance by some landlords to reduce rental rates and provide more flexible lease terms has also led to poor occupancy levels in many properties, although attitudes are changing. Developers and landlords of commercial office towers who are able to diversify their offering and provide services, as well as workspace solutions that strive to meet the needs of the modern business, are likely to continue to be more successful in terms of attracting new tenants and maintaining existing ones.

RETAIL MARKET In Q1 2016 Bahrain has witnessed several significant shopping development openings and new project announcements. The provision

of neighbourhood shopping centres and food & beverage solutions has emerged as a major trend. Community retail developments are becoming more comprehensive, providing family entertainment, such as large scale children’s play centres and cinema screens – a prime example being Seef Mall Muharraq. Galleria in Zinj, a Dadabai project offering over 42,000 sq.m of GLA and anchored by the popular Lulu Hypermarket has opened along with the $40 million Bahrain Defense Force initiative, Wadi Al Sail in Riffa. Al Mercado in ‘new’ Janabiya, with a leasable area of 5,000 sq.m and anchored by Al Osra supermarket, is also on track to open in September 2016. Already reportedly 80 per cent pre let, the development is set to provide a range food and beverage

GDP growth for the Kingdom was 2.9% for 2015 with the non-oil contribution at 3.9% and a contraction in the hydrocarbon sector at -0.9%. options for the local community. In the destination mall arena, soon to be added to the options for shoppers in the capital is the upcoming The Avenues on the Manama cornice at Bahrain Bay, expected to open in early 2017. The development will reportedly provide 38,000 sq.m of total leasable retail space and an impressive range of facilities, including: outdoor children’s play areas and arcades, a running track and gym sets, waterfront dining, a traditional style souk, an indoor market , cinema screens and a public park. The Avenues demonstrates that as the relatively small Bahrain market grows in sophistication, competing developments are diversifying and providing a higher level of onsite services to meet customer demands.

RESIDENTIAL MARKET The residential rental market saw little change in the past quarter. Rates have remained stable, overall, with Juffair, Amwaj Islands and Seef District most popular amongst western expatriates seeking accommodation for lease. Reef Island maintains its popularity amongst young professional expatriate s, sustaining circa 90% occupancy across the apartment towers. Reef Island and Seef District benefit from their close proximity to offices, destination shopping malls and entertainment centres. Despite the number of vacancies in the north west of the island, which tend to be the preference of families and those working across the causeway, in Saudi Arabia, the occupancy rates in newer and well maintained compounds that provide facilities have yet to suffer significantly. Q1 2016 has witnessed the launch of notable new freehold apartment developments at Dilmunia, Diyar Al Muharraq and Durrat Al Bahrain. At Durrat Marina – Layan, a Bin Faqeeh Group project is breaking ground on a unique residential project with a private water park. The majority of investors in freehold property to date at Durrat Marina have been local and GCC nationals and it is anticipated that sales for Layan will draw mostly from this market. Juffair remains a popular choice in terms of affordable investment opportunities for both locals and expatriates. The recently announced RM Kooheji & Sons, a $30-million project, Nasmah Star will provide 137 two and three bedroom apartments, including duplex options. At 26 storeys the tower is expected to be completed in 2018. Other developments set to come on stream over the next 24 months in Juffair include Orchid Plaza, Juffair Heights and Spark Residence. Several luxury developments are also to add to future supply in the residential sector in Seef, particularly in the vicinity of City Centre mall.

Bahrain, Commercial & Residential, Q1 2016. CBRE Research 2016.

Gulf Insider July 2016

Art

Ramadan Lights We asked the people of Bahrain to click pictures of decorative lighting around the country in celebration of Ramadanâ&#x20AC;Ś

e are delighted to announce John Crispin Mendoza and Shikha Varma our winners of the photography contest. They have won Iftar vouchers for two at The Domain Bahrain. Congratulations guys! Enjoy a lavish Iftar meal with that special someone! Check out the rest of images we received.

Photo by: John Crispin Mendoza

Photo by: Shikha Varma Photo by: John Crispin Mendoza

Photo by: Shikha Varma 24

Gulf Insider July 2016

Hotel Review

Reem Al Bawadi Award winning, Middle Eastern themed restaurant opens its doors at the Ramada Manama City Centre.

ell known for its authentic cuisine and hospitality and considered by many as home away from home, Reem Al Bawadi’s genuine flavors and unique ambience has made it an established and well-loved culinary landmark. With a menu comprising of popular dishes prepared using age-old

family recipes, Reem Al Bawadi offers something for everyone, making it a home for friends, family and for the curious explorer. The Restaurant also accommodates an exclusive Shisha Terrace facing the sea side, promising you a memorable experience that cannot be beaten whether you are looking to indulge in a

tasty dinner or for hosting special events with family and friends. Established in 2001, Reem Al Bawadi has built its name and a strong clientele by specializing in high quality, affordable Middle Eastern cuisine served in a warm, family ambience. From its beginnings as a single outlet in Dubai, Reem Al Bawadi has grown to become one of the largest, best known and most highly regarded local food and beverage brands. In addition to winning at the influential What’s On Dubai Awards in both 2014 and 2015, it was bestowed the title ‘Best Middle Eastern Restaurant’ at the prestigious BBC Good Food ME Awards 2014. Reem Al Bawadi is a must-visit for anyone looking to taste genuine flavors and experience one of Manama’s favorite gathering places with a spectacular sea view.

For reservations call +973 1710 4026. Ramada Manama City Centre @RamadaMCC @ramadamanamacitycentre Gulf Insider July 2016

Motors

CAR insider

New car launches in Bahrain

Mercedes Benz E-Class

Price: BD24,000

Audi Bahrain unveils two new high-performance models ahead of Audi Sport showroom concept launch

Ferrari GTC4Lusso launch on 26th

Price: BD55,000

Price: BD49,500 26

Gulf Insider July 2016

Price on application

Motors

Nissan 350Z Nick Cooksey shares his thoughts on a 12 year old sports classic!

his car was previously owned as a company car and used by my company’s co-founder, though it had not driven much for the past few years. Despite this, about three grand was spent on it about a year ago, giving it new suspension and all sorts of other jobs that needed doing on it. Anyway, as it was now surplus to requirements I decided it was time to put this 2004 350Z up for sale. But just before I did I thought it would be fun to drive the 350Z for a few days. I am very glad that I did! When I collected the car it was covered in dust, untouched for months. Despite this, the engine roared into life the moment I switched on the ignition. In my line of work I drive all sorts of new cars, from the basic to the super exotic. Despite this, I can say that I am impressed with this Nissan 350Z. It’s deigned to be a fun car to drive with a powerful V6 3.5L engine that knocks out 278 bhp. Credit to the engineers at Nissan for creating a car that drives so well after 12 years. This is a well-built car indeed. Everything works perfectly and it drives like a new car. Nissan’s Z range have an impressive pedigree, starting with the iconic 240Z which was introduced in the mid-1970s to great international acclaim and which revolutionized the affordable sports car market. The 240Z remains an iconic

Credit to the engineers at Nissan for creating a car that drives so well after 12 years. car to this day and I see a couple of these classic still being driven around Bahrain. The latest Z is the 370 which has superseded this 350. It has changed little in general appearance, but has an extra 200cc engine, more horse-power, and a more ‘luxurious’ interior – though I actually like the fairly basic and ‘classic’

interior of the 350Z. This two-seat sports car marked the fifth generation of Nissan’s Z-car line. I hired Croftgate to valet clean the car to make it look like ‘brand new’. It was convenient since they come to you. Two guys from Croftgate spent a couple of hours working hard on both the inside and outside of the car to make it glow. So my final thoughts; I’m very happy that I didn’t sell this car as planned, and think I will keep it for a while – at least for as long as I find it a delight to drive.

Croftgate USA Bahrain provides waterless wash and wax services for cars, boats and bikes every alternate day, at your doorstep with monthly packages starting from BD10.

Gulf Insider July 2016

Motors

Saudi Playboy Meet the 23 year old Saudi billionaire playboy with a fleet of gold supercars.

ince arriving in London in March Saudi billionaire Turki Bin Abdullah, 23, has made international headlines for the extravagant display of wealth which includes a custom $500,000 Aventador, a $500,000 six-wheeler Mercedes AMG off-roader, a $500,000 Rolls Phantom Coupe, a $350,000 Bentley Flying Spur and a $250,000 Lamborghini Huracan — all painted a uniform shade of gold and imported from the Middle East. He and his entourage are regularly spotted cruising around the affluent streets of West London. So who exactly is Turki Bin Abdullah? Britain’s MailOnline interviewed him last month. Although he was reluctant to reveal any sort of personal information, he was happy to talk about his cars, which he described as his ‘passion’. He also revealed his first ever car was a Porsche 911 and that he customises each of his cars, spending hundreds of thousands on each vehicle to have to covered in gold vinyl as it is his favourite - and lucky - colour. He tips parking attendants £50 a time and hands out designer goods to his friends like sweets. MailOnline arranged to meet Bin Abdullah close to Buckingham Palace, at the spot where rich Londoners like to see and be seen in their luxury cars on the weekend. His entourage made 28

Gulf Insider July 2016

a head-turning arrival in the bright gold Bentley and Mercedes AMG off-roader. Summarizing the MailOnline report; “After several minutes the doors of the Mercedes opened and Bin Abdullah’s entourage poured out, a group including his PR man, his security detail and some friends. They then surrounded the Bentley and, finally, the star of the show himself stepped out. Diminutive and baby cheeked he stepped out of the vehicle and shyly shook hands while his entourage attempted to hold back the crowd of interested passers-by. Despite his taste for the eye-catching

the 23-year-old clearly did not relish being the centre of everyone’s attention. Some of the people in the growing crowd had begun shoving one another in order to get a better look at the circus which was unfolding. All of a sudden Bin Abdullah bolted, walking quickly away from the cars while talking on his phone. “His security team nodded at us to follow so we dutifully wandered over to a quiet spot where we were told the interview had to be moved as there were ‘too many people around. We were told to hop in a taxi and to meet Bin Abdullah at London’s opulent Mandarin Oriental and the golden vehicles would follow. But as we pulled away a police car suddenly rolled up behind us after letting out a bleep of sirens. The officers appeared to be asking what exactly the supercars were doing parking brazenly in the middle of The Mall on a Saturday afternoon. After a minute and some gesturing on both sides we moved off. Unfortunately the relief was short lived. As we circled around the busy roundabout at Hyde Park Corner we

Motors

were confused and then rather alarmed when the golden cars carried on going. “We decided to carry on to the hotel and hope they turned up. I sent a text to Michael, Bin Abdullah’s PR man, who sent the reassuring reply ‘We will be there in 5.’ “Half an hour later we were still waiting in the opulent surroundings of one of London’s most luxurious hotels where Abdullah regularly stayed before he got his own apartment in Mayfair. Finally, the entourage and Bin Abdullah turned up. Michael the PR cheerfully told us: ‘This is what it’s like - our plans change all the time!’ “As they settled in with us it appeared some soul searching had been taking place on the journey. ‘He doesn’t want

to do video or pictures,’ Michael the PR man told me. ‘It’s fine - you just ask the questions and write them down.’ He did reveal that all together he has seven gold cars - but has only brought four of them to London, which is one of his favourite cities along with Paris. But Bin Abdullah was very keen to make one point: He resents the implication that he is one of those who drive their cars loudly and anti-socially through West London. He says he never breaks the law and it appears to be a bugbear for him that media outlets in the Middle East have tried to portray him as a feckless driver terrorising London. He said: ‘In two months I have not had a speeding ticket or broken any red lights.”

Gulf Insider July 2016

Affairs

Saudi special forces Saudi Arabiaâ&#x20AC;&#x2122;s Special Forces in military training exercise.

embers of Saudi security forces have been spotted demonstrating their considerable skills during a military exercise in the desert west of Riyadh in Saudi Arabia. One astonishing image appears to show two men wearing black balaclavas and wielding massive guns leaping from the top of two moving police cars. Another photograph shows a huge explosion in the background as a cavalcade of military jeeps rattle past, and another shows military personnel dangling precariously from ropes attached to helicopters. The final image rather bizarrely shows a member of the Saudi security forces having bricks broken over his head during a military exercise.

Images: Reuters 30

Gulf Insider July 2016

Bahrain Culture App

Style

Officine Panerai

he Panerai Manufacture in NeuchĂ˘tel is enhancing the history of the Luminor Marina by presenting the new Luminor Marina 1950 3 Days Automatic, fitted with the new P.9010 automatic calibre with a power reserve of three days. The Luminor Marina was the first great success in the history of the Panerai brand. In the 1990s, after decades of creations produced for the Italian Navy which were for many years covered by military secrecy, the Luminor with the small seconds dial at 9 oâ&#x20AC;&#x2122;clock was one of the models which helped to make the Panerai brand known throughout the world, with its watches becoming icons of contemporary high quality sports watchmaking.

Gulf Insider July 2016

Must Haves

Style BD599

Corneliani

BD79

Spring/Summer ‘16 Introducing the latest collection by the leaders in high-end elegant menswear.

BD129

BD459

BD379

Cufflinks – Price range BD79-109

BD79 BD399

BD159

BD729

Gulf Insider July 2016

Bahrain

Telecom insider TRA Bahrain wins Employer of the Year Award Telecommunications Regulatory Authority (TRA) was announced the winner of the MENA HR Excellence Award for the 1st place category of “Employer of the Year –Public Sector”. The Employer of the Year in the Public Sector Award recognizes government entities for its commitment to supporting employees at all levels through talent retention, employer branding, learning and development, CSR activities, health and safety, and diversity and inclusion. In addition the awards are judged by an independent panel of experts.

Batelco Partners with GCCIA to Launch Batelco Gulf Network (BGN) Batelco, Bahrain’s leading digital solutions provider has announced the launch of Batelco Gulf Network (BGN) in cooperation with the Gulf Cooperation Council Interconnection Authority (GCCIA). The BGN cable system which runs over the GCCIA power grid offers connectivity to all GCC countries, allowing Batelco to provide high bandwidth and capacity to customers and international carriers.

Deputy Crown Prince Mohammed takes Vision 2030 to Silicon Valley The Deputy Crown Prince Mohammad bin Salman is the chairman of the Council of Economic and Development Affairs. His meetings with major companies will be an important feature of his visit to the United States. He is expected to pitch the highlights of Vision 2030 for the benefit of the tech companies. The vision focuses on strengthening the Saudi economy and guarantees continued financial leadership and entrepreneurship. According to economist Hamoud Al-Shadawi the recently approved National Transformation Program 2020, one of the main pillars of Saudi Vision 2030, would attract direct foreign investment and help diversify Saudi economy. 34

Gulf Insider July 2016

MENA car enthusiasts get their dream mobile App A new mobile application for car enthusiasts has been launched as the region’s first social sharing market place combination for car lovers, bridging the gap between social media and e-commerce. Aptly named Dazzled Cars, it is available completely free of charge on iOS and Android and has more than 200,000 social followers in the region. The new app brings together individual car devotees and automotive businesses in one super interactive community. Car lovers share images and videos of their favourite cars “Dazzled” around town and rank the best images shared in their country. The app also features the option to buy and sell cars completely free of cost, with a built in messenger allowing sellers and dealers to interact.

Telecoms

Advertorial

Unlimited Roaming Benefits

Hajj and Umrah add-on returns

Unlimited GCC data roaming add-ons

The special Hajj and Umrah Add-on has returned this year with unlimited benefits, allowing all customers travelling to the Kingdom of Saudi Arabia (KSA) to stay connected with their family and friends while on their spiritual journey this season. Eliminating the hassle of acquiring a local SIM card on arriving to the KSA, VIVA customers can simply opt into the BD 15 Add-on and enjoy unlimited outgoing calls to Bahrain, unlimited incoming calls, unlimited SMS and unlimited data while roaming on the STC KSA network. To subscribe to VIVA’s Hajj and Umrah Add-on, VIVA Prepaid and Postpaid customers can dial *98865# or SMS “ON” to 98865 and enjoy the unlimited benefits for 7 days.

VIVA Bahrain has introduced GCC UNLIMITED data roaming add-ons for customers to enjoy uninterrupted connectivity with family, friends and colleagues whilst traveling. VIVA’s new data roaming add-ons offer a convenient and affordable way for postpaid and prepaid customers to surf the internet while abroad and share their travelling experiences in real-time. All roaming packages offer unlimited data and are valid for 2 days for BD 5 or 7 days for BD 12. VIVA customers can visit the subscriber’s portal www.roaming.viva.bh using their VIVA line and register to any of the roaming data packages.

Gulf Insider July 2016

Business

After Ramadan We ask if shorter Work Weeks can be Productive

Businesses often believe that Ramadan is associated with a slowing down of operations, fewer hours worked and general loss of effectiveness. But pragmatic business leaders don’t think so…

ragmatic business leaders can ensure that the shorter working weeks of Ramadan do add value to their organizations. Rather than worry about the negative effects on business, GCC organizations should focus on improving efficiency, increasing engagement and embracing change during the Islamic holy month. Working more hours does not necessarily translate to increased productivity. The Japanese, for example, consistently reduced working hours since the early 1970s but their productivity continued to rise over this period. The UK was forced to work a 3-day week due to a miners’ strike in the 1970s; however, experts were baffled to find that production fell by only 6%. Most studies indicate with significant fall-off in productivity after 8 hours of working, and the majority of productivity tends to occur between the 2nd and 6th hours of work. Office workers were found to be especially susceptible to deterioration in performance after 6 useful hours of work per day, compared with 8 hours for more manual jobs. 36

Gulf Insider July 2016

Focus on improving the effectiveness of hours worked. What might appear a short term gain in working people beyond the stage where they are really effective can be offset by longer term problems in staff burn-out, errors, retention and recruitment problems as well as significant diminishing returns in productivity. “This is primarily a leadership and management issue. A great leader helps their team work effectively and happily to make the very most of every hour,’’ explains Professor William Scott-Jackson, Chairman of Oxford Strategic Consulting and an expert on HR in the GCC. Working shorter weeks can increase staff happiness and engagement in the long term. Few employees would agree that working more hours makes them happier. Rather, studies have shown that more time spent relaxing, recuperating and enjoying family leads to happier and more efficient workers generally. The shorter work weeks during Ramadan, then, may reward employers with more productive staff all year round. Moreover, employee engagement and

team commitment can be enhanced by the less urgent and informal environment afforded by Ramadan and its associated events. Change can stimulate creativity and encourage innovation. Employers should use the informal environment of Ramadan for team building and brainstorming workshops around Iftar and other social events. Breaking the monotony of routine can help to formulate new ideas within an organization and also build stronger bonds between employees. Ramadan does not have to be an unproductive period for GCC businesses. Instead, business leaders can derive value from the Islamic holy month by focusing on improving efficiency, utilizing informal activities to increase engagement and embracing change in order to increase creativity and innovation within the organization.

Oxford Strategic Consulting is an Oxford and GCC based consultancy that specialises in building human capital across the GCC and Europe.

Opinion

Ask

Each month we will be putting a legal problem to legal consultant Ali Al Jabal to answer.

This month - Consumer rights Problem: I recently visited a shop in a mall, where I intended to buy some clothes. When I approached the cashier, I realized I had no cash. However, I had my credit card on me, so this wasn’t a problem. Upon purchasing the items I was informed by the cashier that there was an additional 3% Credit Card charge. Surprised, I asked why and was informed that this was a compulsory bank charge. Is this even legal? I don’t know what to do; it seems like we are charged for everything these days!

Answer: The Bahraini law clearly prohibits the provider to impose any additional sums as commission on production, goods and services prices when using a credit card. If you ever encounter this situation again, there is a direct Consumer Protection hotline you can call at Tel: 1700 2003 and report the issue to the Bahraini authorities. They should proceed by taking legal action. Moreover, you can inform your credit card company that the service provider

A full service law firm for Bahrain and the Sultanate of Oman, founded in 1995 by

Mr Ali Al Jabal has incurred an additional charge so they may advance to withdraw credit card services from that particular provider.

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Issue

A Moment in Time SWISS LUXURY FOR MEN

The DJ Festival

BAHRAIN’S BIGGEST INDOOR RAVE!

The Goddess of Small Things

SUMMER IN BAHRAIN

AN ARTIST’S JOURNEY TO SELF-DISCOVERY

The Best of Bahrain BAHRAIN BD2 KSA SR20 KUWAIT KD2 OMAN RO2 QATAR QR20 UAE DHS20

The Best of Bahrain

The Best of Bahrain BAHRAIN BD2 KSA SR20 KUWAIT KD2 OMAN RO2 QATAR QR20 UAE DHS20

IN BAHRAIN SUMMER SELF-DISCOVERY AN ARTIST’S JOURNEY TO

Small Things Gulf Insider July 2016 The Goddess of INDOOR RAVE! BAHRAIN’S BIGGEST

Style

Superyacht The superyacht that comes with its own Waterfall.

t’s been reported that a Middle East buyer is making enquiries to purchase a stunning superyacht that replicates one of nature’s greatest wonders. Stiletto, an innovative 351ft vessel, has its own waterfall, which serves as the backdrop to an enclosed swimming pool. The concept yacht boasts a second swimming pool, gym, spa and a massive lounge. An outdoor terrace protected by shading louvres has an enclosed swimming pool and waterfall, a bar and pantry, recliners and steps to a helipad. Terraces at the rear of the yacht surround a swimming pool that is integrated into exterior dining and bar areas, with spectacular views of the sea. Designed by naval architect Ken Freivokh, Stiletto can accommodate 16 to 18 guests in an owner’s suite, six guest cabins and a VIP cabin that can be split into two cabins. There is also accommodation for 30 crew members. The owner’s suite has its own private terrace and hot tub, and overlooks the swimming pool at the rear of the yacht. On the lower deck, guests can retreat to a spa or gymnasium with exercise equipment and large TV screens built into a wall. There is also storage space for water toys and tenders. In addition to a gym and bar, the lower deck has storage space for water toys, including personal watercraft, and tenders.

Gulf Insider July 2016

If it launched today Stiletto would be among 35 largest superyachts in the world. Billed as a ‘rule breaker’ thanks to its sleek design, Oceanco said: ‘She is a superyacht that transcends all preconceived notions of interior and deck layout.’ Stiletto has a maximum speed of 18.5 knots (34 kph) and hybrid propulsion, with two diesel engines and an electric motor that allows for silent operation. It also includes plans for a unique system that reuses wasted energy.

Images: Oceanco

Affairs

The burden of the

expatriate worker

Saudi writer wrote an article titled “Expat workers pose a danger to our country” which appeared in the Saudi Gazette on June 3. To bolster his argument, he mentioned an incident where workers of a construction company who had been unpaid for months took out their frustration by setting fire to a few company buses. The workers had been languishing with promises of being paid for months before being told they would be sent back to their countries without their dues as the company was in financial difficulty. The writer warned: “We have to realize that the large number of expatriate workers in this country could really be dangerous… some of them can pose security threats to this country. In my opinion, such workers are time bombs that could go off at any minute.” Whenever an incident concerning an expatriate worker involved in a wrongdoing is reported in the press, it is usually followed by warnings of the threat these people pose to our society. After reading many of these generalized warnings against the unskilled and semi-skilled expatriate workforce in this country, I have to ask this question: Can we really get by without their presence? Let us take a look at some of the activities these workers are engaged in. To begin with, our municipal workers are exclusively comprised of large numbers of expatriate workers industriously engaged in keeping our roads and cities clean and our trash carted away. As our cities strain from a growing population, there is an increase in the amount of litter and garbage that has to be 40

Gulf Insider July 2016

removed, and this is being judiciously done by guest workers. Our booming construction industry has necessitated the need for large numbers of semi-skilled expatriate workers. Some load cement in mixers, others shovel and dig and some prepare the ground for the foundations on which structures will be erected. Many of these workers are perched precariously high on scaffolds around high rises, daily placing their lives at risk. For them, there is no safety net of comprehensive medical insurance, and working conditions often include a temperature above 40 C with a high humidity factor.

Tariq A. Al-Maeena

Affairs

Our streets and roads are constantly being dug up to install a sewage network. Guess who is primarily involved in the actual digging and setting of the massive pipes for these projects? It certainly isnâ&#x20AC;&#x2122;t any Saudi that I know off. Trees get pruned and grass in public parks mowed and watered diligently by migrant workers. The waste from our septic tanks is flushed out and carted off in tankers driven primarily by men from African countries. And owing to the highly inefficient water distribution network, potable water to our homes is being delivered by tankers driven by Asians. When we have to move around the city and use taxis or limousines, we are usually driven by expatriates. And

when our personal vehicles need to be serviced or repaired, this is generally done by other expats. As we shop for our groceries it is the Asian who bags our purchases and delivers them to our cars. And around the house, if there is a need for plumbing or electrical work, guess who is available to do the job and without much fuss? Want to install curtains or re-upholster your furniture? There are plenty of expatriates who will do the work quickly and effectively. Our factories and other industries employ a large number of migrant workers, often resigned to pitiful living and working conditions and very low wages, but yet the job gets done without complaint. In some cases, their

Instead of criticizing their presence, let us appreciate their contributions. Many leave homes and families behind to eke out a meager existence and save a little every month to send home.

circumstances are an affront to the human rights defined in our religion. Most of these tasks are being undertaken by expatriate workers because Saudis show little inclination to do them. These workers are not taking jobs away from Saudis, but instead are performing a service essential to all of us and in most cases they are doing them well. Does the Saudi writer of the article know where we would be without expatriate workers? Let us not delude ourselves into believing that Saudis today would readily fill these posts and professions. You will never find a substantial number of Saudis queuing for such professions held by expatriate workers. Instead of criticizing their presence, let us appreciate their contributions. Many leave homes and families behind to eke out a meager existence and save a little every month to send home. Many are subjected to deplorable living conditions, their rights violated in every form and yet they remain faithful to the task and work without protest. Theirs is a sizable burden that they are forced to bear. They stick to themselves and are rarely intrusive and more often abused. And if there are a few miscreants among them who get into unlawful activities, are not some Saudis guilty of the same? To wholly target any group or nationality for the misdeeds of a few among them is gross injustice. Should we not get off our high pedestals and recognize that they really are of no threat of any form to our society? The real threat lies in the lazy and sluggish attitude exhibited by some of our Saudi workforce whose expectations of salary and benefits far exceed their abilities. Our guest workers are not a menace or a threat, but a silent and rarely acknowledged or appreciated army of people who oil the machinery which runs the rest of us. Imagine where we would be without them? Let us show them some gratitude for a change.

The author can be reached at talmaeena@aol.com. Follow him on Twitter @talmaeena

Gulf Insider July 2016

Life

e No. l i f o r P r e d Insi

Ahmed Al Morsy Director of Photography and award winning cinematographer

hat do you enjoy most about working as a cinematographer? The ability to create, innovate and visually express using light, shadows, colors, formation and movement and using different lenses to tell a story filled with emotion and special moments and delivering this dramatic situation to the viewer through the image.

Amongst all of your projects, which is your favorite and why? The best work will always be the one Iâ&#x20AC;&#x2122;m preparing to film because of the many possibilities and how it pushes me to imagine and come up with solutions. As well as the excitement and anxiety that goes hand in hand with the process and the deep desire to execute it in a perfect way and present all that is new and unique. Which is more enjoyable and why, shooting films, music videos, advertisements, or television series? I enjoy filmmaking the most, because they are dramatic works that include so many events, developments, crises, solutions, and different narrative stages. These elements are not necessarily present in music videos or advertisements, but they are the essence of cinema. Also, there are no advertising agency producers and clients of stars who want to appear in a certain way. The main element that controls us all is the script and the means of

translating the story onto the screen. What is the most important lesson you learned during your career? The most important lesson I learned was how to be very flexible, diverse, and open to visual solutions that are fitting with the story and the dramatic plot. I also learned how to become flexible in dealing with different production circumstances, ideas, and points of view. Also, giving priority to the most important moments of the story and staying away from showing off as a cinematographer, and focusing on the right form of the story and drama. What is the key to creating a unique work of art? The key is not to compare it to other works, letting the imagination run wild, and working with a well-selected multitalented team on brainstorming sessions before execution. Tell us about your interest of working with new equipments. I like adventure, experimenting, and trying to adapt to different circumstances and ideas, as well as reaching new solutions. Therefore, before any work, I select a lot of new equipment and I challenge myself to use them in the best way possible in circumstances that are no ideal. I try to employ that in the drama of the film in a calculated way and therefore acquire different and unexpected results in most cases. Hobbies and interests: Safaris, scuba diving, experiencing new foods and culture, sports, reading and music.

Photography by: Mohamed Osama 42

Gulf Insider July 2016

Renowned Works: Messages From The Sea (Rasaâ&#x20AC;&#x2122;el Al Bahr) (2010), The Party (Al Hafla) (2013), The Blue Elephant (2014), Aswar Al Amar (2015).

Al Jabal Consultancy Attorneys and Legal Consultants

Mohamed Al Wasti Partner

Khadija A. Al Hussain Partner

Saleh Al Nashabh Lawyer

A full service law firm for Bahrain and the Sultanate of Oman, founded in 1995 by

Mr Ali Al Jabal Mansoor Nadhar Lawyer

Areas of Specialisation: Mohamed Ismael Lawyer

Banking & Finance Bankruptcy & Corporate Restructuring Corporate & Commercial Litigation Dispute Resolution Intellectual Property Rights Insurance Mergers & Acquisitions Private Equity

Project Finance Property & Real Estate Oil & gas Maritime Aviation Debt collection Legal drafting & Contract Reviewing Telecommunication Law

Office No. 703, 7th Floor, Diplomat Tower, Diplomatic Area, PO Box 11455, Manama, Kingdom of Bahrain Tel: +973 17 530 400 E-mail: aljabal@aljaballaw.com Website: www.aljaballaw.com

Society

Capital Club Media Ghabga

business Events Four Seasons Media Ghabga

Gulf Insider July 2016

Society

Diyar Al Muharraqâ&#x20AC;&#x2122;s Annual Media Ghabga Batelco Media Ghabga

Gulf Insider July 2016

Society

Ramee Grand Hotel & Spa Ghabga Unveiling of Al Thurayya Conservatory Garden Ghabga at Intercontinental Regency Hotel

Gulf Insider July 2016

Society

VIVA Ramadan Media Ghabga Gulf Hotel Ghabga

Gulf Insider July 2016

Society

Euro Motors - Media Ghabga Get Together Opening of Bahrainiyat Exhibition

Gulf Insider July 2016

Society

Downtown Rotana Media Iftar Launch of Bahrain International Property Exhibition (BIPEX) 2016

Bin Faqeeh Quran Competition

Gulf Insider July 2016

Last Word

5. Outsource as much as possible. If you don’t have in-house staff to share the workload, consider outsourcing.

10 Lessons Every Entrepreneur Should Learn

6. Build your personal brand as well as your company brand.

Your personal brand will differentiate you from your competitors, give you authority and credibility in your field, and stick with you in the event your company ultimately experiences failure.

7. Work is life, and life’s too short to hate your work. When you’re

passionate about what you do, and when you focus on happiness (both your own and that of your employees’), work isn’t just something you do to fund your “real life.” It becomes infinitely more enjoyable and meaningful, and significantly reduces your chances of experiencing burnout.

8. Hire people who are smarter than you. There will always be people

s entrepreneurs, we all follow our own path. For some, the rise to financial success is a long, slow, painful process. For others, things just seem to magically fall into place. The latter isn’t a result of magic, however, but is the sure sign of an entrepreneur who understands the importance of learning from, adapting to and growing with their business. The following are 10 lessons every entrepreneur must learn in order to build a long-term, healthy and sustainable business.

1. The customer is not always right. We’re told that “the customer is

always right.” We’re expected to bend over backwards to please every single customer, even when they’re clearly and painfully wrong. This maxim, however, can do a serious disservice to ourselves, our employees and our customers. Give your customers the benefit of the doubt, but not at the expense of your (or your employees’) dignity. 50

Gulf Insider July 2016

2.Time is money. Money, customers,

ideas: all resources you can potentially gain more of. Time, however, is the one commodity you’ll always have a finite amount of. One way to ensure you make the most of your time is to delegate many tasks so you can focus on higher level, revenue-generating tasks. As a business owner, you should only do the tasks that only you can do.

3. Not all money is good money.

Avoid clients who take up too much of your time, who consistently have unrealistic expectations, or who you just generally dread working with. It’s just not worth it!

4. There are no cheap shortcuts in marketing. Cheap marketing can

make your brand look cheap. Low-quality content, cheap ads, and “budget” SEO may save you money in the short term, but the damage they do to your brand’s reputation can last far longer.

who are smarter than you. If you’re lucky enough to find these people, hire them. Focus on the things that you’re best at, and give them the freedom to do the same.

9. Best practices may not be best for your customers. It’s easy

to get caught up in doing what others tell you is the “best way” to do something. Problem is, “they” don’t know your customers or clients. Use best practices as a starting point, but adapt them to meet the unique needs of your business and customers.

10. Just do it. Planning, strategizing

and weighing options all have important roles within a business. But there comes a point in time when you just have to do it. The lack of ability to execute a plan will stifle growth, innovation, and progress in any business. There you have it: 10 lessons every entrepreneur must learn in order to build a profitable and sustainable business. Not easy lessons, to be sure, but ones that ensure the best possible chance of long-term success.

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