Gulf Insider November 2015 by Gulf Insider Media

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Issue 130

Business

Lifting Iran’s Sanctions Travel

Halal Tourism Leads Global Travel Sector

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Expert views on Bahrain’s economy and agricultural sector

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Are Subsidies “Bad”?

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Volvo XC90 Review

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Contents November 2015

50 WORK Telecoms

Innovation Center by VIVA and Huawei Special Feature

Stepping Towards Reform Business

Lifting Iran’s Sanctions

Property

Dubai’s Most Expensive Apartment Affairs

Anti-bribery and Corruption Report Opinion

A Family Man in Hiding

PLAY

12 40 14 44

Travel

20 46

Insider Profile:

26 47 31 50 34 58

Style

Welcome to Egypt Life

Al Areen Palace & Spa Enhances Local Tourism

Arif Feroze

iPhone 6S Review

Motors

Volvo XC90 Review

Last Word

The Problem in Working from Home

B u si n ess w it h S t y l e

Comment...

Publisher & Editor in Chief - Nicholas Cooksey Business Development - Redia Castillo Editorial - Abeer Saeed Parkar

Gold is making a comeback

Regular Contributors - Hugh Haskell-Thomas - Nicholas Cortes - Bill Daly

After its recent stellar performance, gold might do something it hasn’t done since 2012—that is, end the year in positive territory. Responding to a weaker U.S. dollar, continued contraction in global growth and wide speculation that interest rates will stay near-zero for the remainder of the year, the yellow metal broke above its 200-day moving average and is close to erasing its 2015 losses. It’s no mere coincidence that gold’s breakout coincides with the weakening of the U.S. dollar. For the past year, the strong dollar has crushed these assets.

Guest Contributors - Tariq A. Al Maeena - Rich Hutchinson - Loe Babauta Layout Designs - Dhanraj S Admin & Finance - Nikesh Pola Photography - Shareef Panhatt - Harold Tejada - Bench Medina

Gold has even further upside potential. In India, the world’s largest consumer of the precious metal, the annual wedding and fall festival season has officially begun, which has historically triggered a spike in demand. Gold has also likely benefited in the short term by global geopolitical events such as Russia’s involvement in Syria. We should never welcome war, but the truth is that political turmoil very often has had a positive effect on commodity prices and currencies.

Distribution Executives - Mohammed Yousif - Muhammed Shareef - Rafnaj K P

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Printed at Awal Press, Kingdom of Bahrain.

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Distribution Bahrain: Al Hilal Corporation, Tel. +973 1748 0800 UAE: Jashanmals, Tel. +971 4341 9757

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The multi-award winning Arabian magazine

WORK

PLAY

for PLAY see page 35

BusIness wIth style

for WORK see page 08

Business with style

Issue 130

Business

Lifting Iran’s Sanctions

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.

Travel

Halal Tourism Leads Global Travel Sector

Motors

Volvo XC90 Review

The monthly print edition of Gulf Insider is distributed to Bahrain’s highest spending consumers and decision makers. There’s also limited distribution in other GCC states via airline lounges, duty free, ARAMCO in the KSA, and other strategic locations.

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Expert views on Bahrain’s economy and agricultural sector

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Travel Insider - Welcome to Egypt Motors - Volvo XC90 Art - The most beautiful mosques in the world

Are SubSidieS “bAd”?

Arabia’s most intelligent magazine

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Registered with Ministry of Information approval no. TFI-431©. No part of this publication may be reproduced in any manner without the written permission of the publisher. All Rights Reserved. Views expressed in this magazine are not necessarily those of the publisher. *Articles by these correspondents are the copyright of Telegraph Media Group, 111 Buckingham Palace Road, London SW1W 0DT, England.

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Send your views to info@Gulf-Insider.com Mohammad Qahtani – an inspiration

The multi-award winning Arabian magazine

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Issue 129

Affairs

Salaries expected to increase in Bahrain Interview

Mohammad Ali Al Areen Palace Resort & Spa Motors

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Frankfurt Motor Show 2015

Bahrain real estate Confidence returns as investors see increased development

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Frankfurt Motor Show 2015 Enjoyed the short piece on the motor show that highlights the German car industry, I especially loved the list of 25 stars/cars that shined most. - Mark L.

for PLAY see page 31

The Arabian Review

Issue 128

Please continue featuring motivational figures like him! I was shocked to learn Mohammad Qahtani didn’t speak until he was six-years-old. To read about this individual’s struggle with stammering, fright of public speaking and then going on to win the Toastmasters World Championship sent chills down my spine. A true hero. – Tanner M.

Vice Gang

Cover Image: Harold Tejada

I agree with Dr. Swar, Bahrain needs to protect the women and children who come from broken homes. Before we invest in infrastructure, how about we safeguard our youth? Not everyone can afford a therapist, she’s right, “Nobody comes down to the streets to help the poorest”. – Justina S.

Bahrain to End SuBSidiES?

Lower oil prices adds pressure on GCC over subsidies

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The Arabian Review

BOGUS DEGREES

Can you trust your employees qualifications?

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+ Review of 10 best apps to be organized and save time!

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Gulf Insider November 2015

Bahrain Real Estate Your in depth research about Bahrain’s property market was necessary, I hear many complain about the reforms underway in the country. People need to understand that falling oil prices aren’t exactly the end of the world. The GCC has come a long way since we first struck oil 40 years ago. As a Bahraini, I’m quite confident and optimistic my country has potential to become the next Dubai. – Ahmed K.

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News

GULF ROUNDUP news around the GCC and beyond

business & Affairs

Invest in Bahrain Forum 2015 “Invest in Bahrain 2015” will be held on November 4, at the Bahrain International Exhibition & Convention Centre (BIECC). The forum provides an excellent platform and space for networking and acquaintance of the industrial climate in the Kingdom of Bahrain as well as an opportunity to interact with important policy makers in the government and the private sector. The exhibition to be held on the sidelines of the forum, will be allocated for small and medium sized enterprises (SMEs), in line with the ministry’s vision and strategy at supporting and developing the sector of SMEs. The forum is expected to attract businessmen, businesswomen, investors from Bahrain and GCC and Arab and international economic figures. – Bahrain News Agency

Annual 4% training levy on private sector cancelled Following a Royal Decree, the responsibilities of the High Council for Vocational Training have been transferred to Tamkeen. As part of the transfer, the training levy required by private sector institutions employing over 50 workers that totals 4% of the total salaries of foreign workers has now been cancelled. The Decree has been issued by His Majesty King Hamad bin Isa Al Khalifa under urgent notice and aims to complete the economic legislative infrastructure in the Kingdom by merging some government departments to avoid redundancy in public work, boost productivity and cut expenses resulting in a stronger economic climate. Utilising its extensive experience in upskilling Bahrainis and preparing them for the labour market, Tamkeen will assume new responsibilities that include drafting of vocational training policies and formulating relevant plans.

Gulf Insider November 2015

News

BP to begin north Alexandria gas output in early 2017 British oil major BP will begin gas production at its north Alexandria concession in early 2017, Egypt’s Petroleum Minister Tarek El Molla has said at a news conference last month. The offshore concession’s output will be roughly “450 million cubic feet per day in 2017 and reach 1.2 billion cubic feet per day by the end of 2019,” said El Molla. These volumes will mean a significant boost to gas production in Egypt, a country that has been searching for ways to plug acute energy shortages that have slowed production at many of its energy-intensive industries. BP also confirmed it has been awarded three new offshore exploration blocks in Egypt and that it and its partners will invest $229mn. – Zawya

Oman’s first sovereign sukuk issue attracts strong orders Oman’s first issue of sovereign Islamic bonds has received strong orders ahead of its final pricing. The $520 million (200 million rial), five-year sukuk issue with an ijara format drew 22 orders totalling $872 million (336m rials) during the subscription period, which ran from Oct. 8 to 22, Mohammed Hussain Jawad, advisor at the finance ministry and head of the committee handling the issue has said. Jawad also said the ministry planned a second sukuk issue next year, but he did not elaborate on the size or timing. The issue will give the country’s Islamic banks, insurance firms and funds a badly needed tool to manage their money more efficiently, which could help them to become more profitable. – Arabian Business

UAE is open to imposing taxes The UAE is open to imposing taxes but any decision will be evaluated thoroughly by the government before implementation, the Minister of Economy has said. The minister did not elaborate on what kind of taxes the government is considering imposing nor given any timeline. The UAE has been for a while considering imposing taxes on corporate, tax on remittances and Value Added Tax and some others. The UAE imposing taxes gains importance in view of the ongoing low oil prices due to which the revenues had declined sharply. The Ministry of Finance in August has said that the UAE has been conducting a series of studies on the implementation of a draft VAT (Value Added Tax) law, along with the other GCC countries. – Gulf News

Samer Abdel Kader, Head of SEI Investments (Middle East)

Regional CFO’s and HR Heads expecting strong growth despite challenges 80% of companies expect to see an increase in headcount over the next three years despite mounting macroeconomic and operational challenges, according to SEI’s third annual End of Service Benefits (EoSB) report. The report revealed that 53% of respondents expect Expo 2020 to impact them positively, as opposed to 45% in last year’s poll–while63% of respondents claim that they have felt no negative impact as a result of the change in oil prices. Only 5% of companies surveyed expect major restructuring as a direct result of changes in oil prices. Per the survey findings, finance executives, under continuous pressure to maintain profitability, cited operational costs as a key challenge and cost reduction as a top priority for the year.

Gulf Insider November 2015

News

Saudis get over 322,000 jobs in private sector alone

Emirates celebrates 30-year milestone From its small beginning in 1985, Emirates has come a long way to become a global leader in the aviation industry. In the year after its 1985 inaugural flight from Dubai to Karachi, the airline had 200 employees and operated a fleet of three aircraft, flying 262,000 passengers to seven destinations: Karachi, New Delhi, Bombay, Amman, Colombo, Cairo and Dhaka. By 1994 and 1995, the airline had over 4,000 employees and a fleet of 17 aircraft flying to 34 destinations in 29 countries - numbers which had increased to just under 20,000 employees and 76 destinations in 53 countries by 2004/2005. Now, the airline boasts over 56,700 employees from 168 countries and flies 49.3 million passengers to 144 destinations in 81 countries. Another 267 aircraft - worth $128 billion - are currently on order. – Khaleej Times

SME Majlis – B2B (Meet the Big Boys) Under the patronage of Khalid Almoayed, Chairman of the Bahrain Chamber of Commerce and Industry (BCCI), with the support of the SME Committee, chaired by Mohammed Farouk Almoayyed, the SME Committee have charted an event that will help stimulate the growth for the private sector, showcase potential and create business opportunities for small entrepreneurs. The event, SME Majlis (B2B - Meet The Big Boys) will be a conduit between large corporates & institutions and the SME’s within the Kingdom. It aims to bolster ties and offer SME’s all the support and encourage partnerships that are beneficial to all involved. Each corporate will be assigned its own ‘Majlis’- (an Arabic style seating area for social gatherings) in a semi-formal arrangement, wherein the SME’s and the larger corporate can discuss various business possibilities. The corporates invited to the event will approve the categories of SME’s beforehand so that they get to meet an SME, which is of interest to their organization. Each appointment-based meeting will be 15 minutes long and this would be the perfect opportunity for the SME to pitch their product or service and engage the corporate company to realize their dream. The SME Majlis (B2B - Meet The Big Boys) will be held at the BCCI headquarters in Sanabis on Sunday, 6th December 2015 between 9.30 am – 2.00 pm.

Gulf Insider November 2015

The year 2014 showed a considerable increase in terms of nationalization with 322,358 male and female Saudis landing jobs in the private sector, figures released by the Ministry of Labor (MoL) have revealed. A total of 24,917 Saudi also returned to their old jobs, thus taking the total number of employed nationals to 347,275. - Arab News

Diyar Al Muharraq Signs for Primary Infrastructural Designing Diyar Al Muharraq, one of the leading urban developers in the Kingdom of Bahrain, recently signed an agreement with AECOM, an infrastructure services company, for the primary infrastructure designing within the master-planned development. AECOM’s contractual obligations include providing primary design and construction supervision for all the infrastructural components of Diyar Al Muharraq including roads, grade separation, landscaping, environmental impact assessment, all transportation and logistics requirements and utilities, including the potable water network, sanitary network, electrical distribution network, telecommunications network and waste management. Diyar Al Muharraq a unique master planned city, will offer a cohesive mix of residential and commercial properties.

News

New Appointments at Mindshare UAE, Bahrain, and Morocco

Ziad Abou Khalil

Mindshare, which is part of WPP, is a global media agency network helping clients to make collaborative and adaptive decisions across their paid, owned, and earned marketing in realtime. The agency is pleased to announce several key changes to Mindshare’s teams in the United Arab Emirates, Bahrain, and Morocco.

• In Mindshare Dubai, Travis Harding has been appointed Regional Director – Head of Social Media for the MENA region. Harding is an award-winning digital marketing and social media expert who gained experience at global media agencies. • Managing Director of Mindshare UAE Mazen Fakhoury will transition to a new position, Chief Growth Officer. His primary roles will be managing new business development across the MENA region. • Chief Client Officer Ravi Rao, who has a successful track record in both GCC and India, will become the LEAD of the UAE offices in addition to his role as CCO. • Nizar Abou Saab moves from his position as MD of Mindshare Bahrain to lead Mindshare’s office in Abu Dhabi and MSPLUS a newly launched media company in the UAE. Nizar has been with the company since its inception. • Ziad Abou Khalil has been reallocated from Morocco where he managed the Mindshare office there or the past 5 years, to head Mindshare Bahrain take over from Nizar Abou Saab. • Finally, Boutaina Tazi will become Mindshare Morocco’s newest Acting Managing Director, identifying opportunities to develop further the Mindshare business in Morocco. “These new appointments and changes represent the broad spectrum of talent that embodies Mindshare MENA as an agency,” said Mindshare MENA CEO Samir Ayoub, “Each of these positions is critical in achieving our agencywide goals, and we have chosen the most experienced and innovative team members to leverage their creativity and expertise for success.”

Gulf Insider November 2015

Innovation Center by VIVA and Huawei The Kingdom’s most innovative telecom operator, VIVA Bahrain and Huawei, a leading global ICT solutions provider, have signed a Memorandum of Understanding (MoU) during GITEX 2015 Technology Week, to establish a state-of-the-art Innovation Center that will enable and facilitate the latest technology development for all industries and sectors across Bahrain. This strategic cooperation between both parties will also seek to further enhance VIVA’s customer experience. The MoU was signed by Eng. Ulaiyan Al Wetaid - VIVA Bahrain CEO and Paul Fengnan, Huawei’s Bahrain Country General Manager, during one of the world’s biggest technology events, GITEX 2015, recently held in Dubai. This was VIVA’s fourth successful participation in GITEX, where the telecom operator showcased its wide range of effective solutions that encompass Internet, data connectivity, mobility and Information & Communications Technology (ICT). “Our strategic cooperation with Huawei envisions the establishment of an Innovation Center providing the latest technology to nurture and empower businesses from all sectors in Bahrain. It additionally, reinforces our commitment to enrich our customer experience. Through this agreement, Huawei will also support VIVA to streamline network capabilities and management processes enabling us to continue being at the forefront with the latest technology both in terms of execution and service delivery,” said Eng. Ulaiyan Al Wetaid, VIVA Bahrain CEO. Under the new agreement, Huawei will work with VIVA Bahrain to fulfill its network evolution requirements, by maximizing the efficiency of the operator’s existing network. Through its recommendations of future network technologies, Huawei will support VIVA in developing and exploring new solutions and applications for indoor deep coverage, Cloud Services and much more. Additionally, Huawei will also collaborate with VIVA on talent development in the ICT sector to continue attracting human capital and equip them with trainings on advanced ICT technologies and solutions.

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Special Feature

Stepping towards Reform With more than 20 subsidies cuts in the public sector underway, most recently meat and poultry, Gulf Insider wanted to know if the Kingdom of Bahrain can make up for its underdeveloped agricultural sector. Dr. Jarmo T. Kotilaine

r. Jarmo T. Kotilaine, Chief Economist for the Economic Development Board, reassured that government committees are considering the most effective ways to implement fiscal and technical reforms to reduce government spending, improve citizens’ living standards, support growth in the Kingdom and ensure long-term fiscal sustainability. “Developments in the subsidies system are part of a wider program of economic reforms that have been pursued over recent decades and will help to ensure the system is more efficient and that funds are targeted as effectively as possible,” he explained. The reforms are supported by the government’s Executive Committee, chaired by His Royal Highness the Crown Prince, and the Ministerial Committee for Financial Affairs and Rationalising Expenditure. According to “Bahrain on the Food Security Index 2013”, a whitepaper published by the EDB last year, Bahrain was categorized as a good environment for food security, driven by its ability to stabilize food prices, secure imports, and operate an advanced food safety and nutrition monitoring system. However, the country faces challenges in the agricultural sector due to decreased employment in the industry 14

Gulf Insider November 2015

and resource-related factors that limit production, such as land scarcity, water scarcity and climate conditions. A growing population and urbanization has also put pressure on demand and created an opportunity not yet fully recognized by the private sector. Bahrain is also an open economy with high trade volumes of food and

We depend heavily on imports and this is a region wide reality, unlikely to change in the foreseeable future. other goods imported from 18 main trade partners that supply 84% of food products. Saudi Arabia and Australia lead the foodstuff import basket with 15% of the total imports value. These are followed by India, UAE and the US. “We depend heavily on imports and this is a region wide reality, unlikely to

change in the foreseeable future. But this does not mean that resources cannot be used more rationally or that food security cannot be significantly enhanced,” Dr. Kotilaine stated.

Investing in Alternatives “I believe we need a multi-pronged food security strategy. A number of different options have been considered, but probably the highest potential comes from harnessing new techniques, with various projects underway,” he explained, “Aquaculture is a promising area for food security as well as hydroponic and vertical farming which offers avenues to achieve more from scarce resources.” The reported analysis stressed that agricultural research and development are vital to Bahrain with challenges related to climate and resource endowment. Milestones have been achieved in promoting research and development upon the establishment of the National Initiative for the Development of Agriculture. This initiative was established by Her Royal Highness Shaikha Sabeeka bint Ebrahim Al Khalifa, the Head of the Supreme Council for Women. Under this initiative, The King Hamad Prize for Agricultural Development has allocated a budget of BD80,000 to address agricultural shortcomings, support the private sector in driving

Special Feature

agricultural growth, and encouraging research and development. The scope of the prize will span governorates that will compete to establish modern irrigation systems and technology intensive planting projects. Additionally, the National Initiative has allocated BD30,000 in grants, with extended funding to the Arabian Gulf University (AGU) to develop palatable animal feed from locally available agricultural remains like palm leaves and other leafy greens. The project will assess the financial and technical possibility of local production to supply domestic and regional demand to address the shortages in supply which are driving a continuous steep rise in the price of animal feed. Other research and development by the private sector include AGU’s monitored hydroponics farming system and water security preservation. This is an area where spending can create a breakthrough in the ability to source local demand with technologies such as vertical farming and hydroponics. However, these projects remain limited in size and independent from the broader sector vision.

The Cost of Subsidies According to last year’s report, Bahrain’s universal subsidy program made essential food items affordable across all social classes. Beneficiaries included nationals, residents and corporations, with a large proportion consumed by the hotels and restaurants sector. However, food subsidies increased with rising global food prices. In 2012, food subsidies reached 5% of total subsidies and stood at BD51.9mn, which was a 461% increase since 2004. The heavy dependence on oil revenues to generate fiscal income has triggered rethinking on subsidies across the GCC region and Bahrain is no exception. “The challenge with universal subsidies on food is that they cannot effectively differentiate among consumers based on their needs. In practice, low-income consumers tend to spend less (in absolute terms) on food and therefore benefit from a smaller proportion of the overall subsidies. One of the key objectives of the current committee reviews in Parliament and

Government is to make sure that people’s needs are recognized and especially nationals appropriately compensated for the effects of the subsidy reforms,” Dr. Kotilaine stated. He believes it’s currently too early to say whether the entry of new traders into the market will offer consumers more competitive prices, previously monopolized by the Bahrain Livestock Company. “Bahrain has its own agricultural sector today and has had for centuries,” he stated, “There is a need for it to be more dynamic and change with the times.” Dr. Kotilaine stressed there are significant underdeveloped opportunities in terms of generating more value through product development and processing. “The ultimate objective should be a healthy, sustainable food industry that captures multiple elements of the value chain,” he concluded.

For the full report on Bahrain’s Food Security White Paper, visit www.bahrainedb.com

Gulf Insider November 2015

Special Feature

Are Subsidies “Bad”?

With the Kingdom’s recent cut in meat subsidies, Gulf Insider spoke to several people about their financial concerns and asked leading economist Dr. Akbar Jaffari why he believes subsidies are unnecessary.

Less Revenue Leading to Subsidy Cuts GCC governments are speeding subsidy reforms in an attempt to reduce expenses spurred by declining oil revenue. “Global oil investments will drop a further 20%, the biggest decline in history,” Head of the International Energy Agency, Fatih Birol has said in recent reports. Analysts also predict a recovery period for oil and gas where prices drop and stay low for years before rising. Close to the heels of subsidy cuts in Oman and UAE this summer, the Kingdom of Bahrain has also revised its funding structure which led to higher prices of meat and poultry last month. However, there are mixed reviews in the country about the implementation of the new policy. Some disgruntled traders boycotted red meat, especially in Muharraq’s Central Makret when prices hiked overnight from BD1/kg to BD3.2/kg, causing a drop in demand. More recently, butchers reportedly stormed a Muharraq Municipal Council meeting and demanded government action. Bahrain’s meat dispute is similar to the one in Kuwait’s fish market this August when prices of “King Fish” almost doubled.

Gulf Insider November 2015

Special Feature

The hike led to a ‘Let it Rot’ campaign, gaining momentum on social media and successfully bringing prices back down from $49.5/kg to $29.7/kg. Bahrain’s budget deficit of $4bn has initiated talks of slashing 21 subsidies, in addition meat. Although the government introduced a compensation system online for its citizens (not expats), to receive allocated amounts every quarter depending on family size to make up for the rise in meat prices, not everyone is content. “I’m not going to sign up for this, I think it doesn’t make any difference to me because my family is small with just two children,” says one Bahraini national, “But I don’t know how families with more members will manage the costs, I think the compensation is not enough. We (referring to Bahrainis) usually eat meat thrice a week, but now we might have to reduce that amount.” Recent reports suggest there will be further discussion on revising and doubling the meat allowances for nationals. Meanwhile a Filipino expatriate voiced concerns over the potential rise in electricity and water costs. “I don’t know what I’m going to do,” he said worryingly, pointing to his most recent bill issued by the Electricity and Water Authority. He pays close to BD30 every month in water and electricity costs, around BD70 is subsidized. “If the subsidy is removed I’ll have to pay BD100 per month, in addition to my apartment’s BD200 rent.” He mentioned that most Filipinos don’t consume red meat, so they are unaffected by the price hike, however, they eat a lot of poultry, prices of which rose by a mere 400fils.

The Brighter Side Although there is growing anxiety amongst the expat and national population of Bahrain, the Kingdom’s leading and most outspoken economist Dr. Akbar Jaffari, CEO of Jafcon Consultancy Firm for Productivity Improvement, clarified that subsidies should have been dissolved 25 years ago. “Subsidies are traditionally put in place by nations for specific reasons, on specific items and towards a selected demographic for some time to control a situation until stability returns,” he said.

Dr. Jaffari explained that the oil boom in the 1970s had caused an inflation and was threatening the market, which is why governments introduced subsidies to alleviate the pressure off people. However, by the mid-80s, stability had returned, but the subsidy structure wasn’t revised. “We generalized subsidies for everyone and this sent the wrong message to our nation. Subsidies are not a right; they are a transitional solution to a situation that can be removed once the condition disappears.” In fact, he stated that many governments don’t have subsidies, they have taxes, which is the opposite. He believes that because of the generalized approach in subsidies, Bahrain and the GCC is simply not used to the currently revised structures.

Subsidies are not a right; they are a transitional solution to a situation that can be removed once the condition disappears. “These are waves in the economy, we can’t say this shouldn’t happen, or that cost of living will push expats to leave if employers don’t increase salaries,” Dr. Jaffari noted, “If expats can’t afford living costs, they will have no choice but to leave and then employers have no option but to increase salaries. Meanwhile, we have to revise our priorities and wasteful expenses.” With regards to meat allowance being specifically distributed to all Bahrainis, Dr. Jaffari pointed out that nationals make up for half the population, half of which don’t need any sort of compensation. “I’m a Bahraini, but I strongly feel I’m not entitled to government subsidies. A targeted compensation system will be

more effective than a generalized one.” He also explained that a blanket amount shouldn’t be allocated without carefully addressing the specific needs of the almost 75,000 low-income Bahraini families.

Bahrain’s Lack of Agriculture Meat prices in Bahrain are the cheapest in the world, with subsidized meat products mostly coming from Australia and other imports from Sudan and Pakistan. In comparison, a kilo of lamb costs £5.99 in the UK, while it sells here for BD1 with subsidies and BD3.49 without. Dr. Jaffari continued to explain how the generalized subsidies in meat had actually created partiality in businesses whereby restaurants and hotels made great profits off the government’s money. Restaurant owners declined to comment about the implications raised meat prices have on their business. Presently, Bahrain Livestock Company is the only importer of livestock under the national subsidies program. However, investors are reportedly optimistic that removal of meat subsidies will open the market for other traders now. “We’re not an agricultural economy, we depend on imports and that’s our reality,” Dr. Jaffari stated, “We don’t even have our own vegetables.” He explained that partnering with countries by buying fields in fertile places such as Syria, Oman, Saudi Arabia, Iran and the Far East to grow produce is one way of starting up in the sector. “Within our current time, it’s difficult to catch up in the agricultural division. The next generation should look for solutions in the longer term.”

Subsidy Cuts to Continue Meat costs only account for 5% of the subsidies basket, a parliamentary committee member reportedly said. The government next plan’s to scrap all public subsidies within a year to partly relieve its $4bn budget deficit. “Although there is a sense of momentary chaos, the economy needs to run its natural path.,” Dr. Jaffari ensured, “This is how a free economy works, give it two years and everything will fall in place.”

Gulf Insider November 2015

Business

Living in interesting timeS... Bahrain and other GCC states must prioritise more efficient energy use. The Kingdomâ&#x20AC;&#x2122;s economic growth is expected to slow from 4.0% last year to 2.6% in 2015.

lthough the recent drop in oil prices has made conventional sources of energy cheaper in the GCC, this must not discourage investment in alternative energy supplies, according to a new ICAEW report that provides a snapshot of the regionâ&#x20AC;&#x2122;s economic performance. The report undertakes a quarterly review of

Gulf Insider November 2015

the Middle East, focusing on the Gulf Cooperation Council (GCC) member countries (United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait), as well as Egypt, Iran, Iraq, Jordan and Lebanon (abbreviated to GCC+5). According to the GCC Energy Intensity Project, which began in late 2011, the low prices of fuel, electricity and water

are a substantial barrier to more efficient energy use in the region. In the context of sustained lower oil prices, this is likely to remain the case, especially given expanding energy demand and growing population across the region. In 2011 none of the GCC countriesâ&#x20AC;&#x2122; energy was from alternative sources. This looks set to change following a

Business

surge in innovative research and target-setting on behalf of governments in the region. The UAE, for example, has committed to specific alternative energy targets with Dubai striving to generate at least 5% of its total energy consumption from renewables by 2030, and Abu Dhabi setting a 7% target for 2020. The Mohammed bin Rashid Al Maktoum Solar Park in the Dubai, scheduled to open in 2017, will be able to power 30,000 average UAE homes. The solar park aims to achieve a total capacity of 3,000 megawatts in 2030 once it is completed. With car ownership and usage in the GCC well above the world average, governments are continuing to invest in public transport infrastructure to help reduce levels of energy consumption – and ease traffic congestion. The ambitious $200bn GCCwide railway network is due for completion in 2018, and contracts worth billions of dollars have been awarded for metro line construction in Abu Dhabi, Kuwait, Jeddah, Mecca and Medina. However, such infrastructure will only improve energy efficiency if the rate of public pick-up is

substantial. The private sector can help encourage this public usage, for example by building facilities around major railway stations. The regional move towards limiting or eliminating fuel subsidies will also play a part in minimising car use. Shifting to alternative sources of energy in the water desalination sector will also help curb energy demand in the GCC. Desalination – the process of converting seawater into

According to the GCC Energy Intensity Project, which began in late 2011, the low prices of fuel, electricity and water are a substantial barrier to more efficient energy use in the region. freshwater – is both energy- and cost-intensive, and the UAE, Kuwait and Qatar are among the world’s top nations in terms of desalination capacity. With water consumption rates in the region continuing to swell, many of the GCC countries are considering how to make the desalination process more sustainable. Saudi Arabia’s King Abdullah City for Atomic and Renewable Energy is one such example of the steps being taken by the GCC countries on the road to ensuring long term freshwater supply.

The report also shows: BAHRAIN: Economic growth in Bahrain is expected to slow from 4.0% last year to 2.6% in 2015. The country has relatively low government reserves, compared to many of its neighbours, and this will likely jeopardise a part of planned infrastructure spending. UAE: The UAE’s GDP growth in 2015 should reach 3.9% thanks to more established diversification efforts allowing the economy to grow strongly despite lower oil revenues. Infant industries such as art and culture are likely to experience funding shortages as heightened safety concerns in the region require a reconsideration of spending priorities. Still, non-oil sectors like banking and tourism will contribute to GDP growth. Saudi Arabia: GDP growth in Saudi Arabia over 2015 is expected to reach 2.4%. Last year was the first time in over a decade that the Kingdom posted a fiscal deficit, with government spending in excess of its revenues – something which is likely to happen again in 2015. While in the short term, currency reserves can be used to offset a budget deficit, persistently lower oil prices will require a more significant economic shift through diversification and investment in sustainable sources of energy. Regional safety concerns and increased defence spending also pose a challenge for the Kingdom. Qatar: Qatar’s planned construction project investment of nearly $30bn this year will contribute to strong 6.9% GDP growth, supported by the international expansion of many of its key businesses. An area of risk may be the international investigation into the awarding of the 2020 FIFA world cup, as it may have wider repercussions on international investors’ views of the country. Kuwait: Healthy consumer spending and government investment in key development areas such as youth employment will support 1.7% 2015 growth in Kuwait. A substantial sovereign wealth fund will allow the country to deal with this year’s projected fiscal deficit without major spending cuts, but continuing to develop non-oil industries will be essential. Oman: Oman’s economy is expected to expand by 3.5% in 2015, partially fuelled by infrastructure projects such as the newly-opened desalination plant in Ghubra. Despite the fall in oil revenue, the Sultanate plans to meet all spending commitments (in the short term at least) with a focus on boosting non-commodity sectors such as trade and manufacturing.

Gulf Insider October 2015

Business

Lifting Iran’s sanctions will it boost GCC economies?

ICAEW members and guests gathered at Jumeirah Emirates Towers in Dubai recently to discuss the impact of lifting Iran’s sanctions.

anellists and invited guests discussed the economic impacts of lifting Iran sanctions on the Islamic Republic and GCC countries last month. Speakers included Dr. Theodore Karasik, Geo-Strategic and Political Economic Analyst; Parham Gohar, Co-Founder and Partner at Frontier Partners; Ali Borhani, Founder and Chief Welding Officer at Incubeemea; and Sheila Shadmand, Partner-in-Charge at Jones Day. Investors need to be aware that sanctions are not lifted yet nor expected to be until 2016 at the earliest, they informed. However, even if the deal is implemented, the US primary restrictions will still be in place, prohibiting US companies from doing business in Iran, since there is no specific or general license from the American government that would allow otherwise. As a result, it is critical for investors looking to do business in Iran to seek the necessary legal advice to understand what opportunities and risks may exist in a post-deal world. This should also include conducting due diligence on potential local partners - whether they are based in Iran or neighbouring countries 20

Gulf Insider November 2015

to ensure compliance with anti-money laundering laws. Doing business with sanctioned persons or companies could be subject to legal penalties, which can be in the range of US$ 250,000 per violation. Iran’s economy is expected to grow rapidly over the coming years. This should help the Islamic Republic to become an attractive destination for foreign investors in the medium to long term. GCC economies, particularly the UAE, would be positively affected by sanctions relief and are expected to play significant roles in terms of the investment and trade flows to Iran. According to Iran Vision 2025, the Islamic Republic is expected to attract somewhere in the region of US$1 trillion of investment between now and 2025. Investors would be wise to start assessing Iran from now to determine whether it is a ‘must have’ or a ‘nice to have’ market within their portfolios. “Initially, the UAE could play a similar role to that which Hong Kong plays regarding China. It has the potential to become the gateway to the Iranian market thanks to its historical trade relations with Iran, worldclass infrastructure and best-in-class

Business

logistics,” said Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA). “Investor confidence would be boosted by the fact that the UAE has always been a trusted business partner. Although businesses will eventually go directly to Iran, without requiring any intermediary, this is unlikely to change the UAE’s position as a vital trade hub for the region.” Oil and gas, mining, petrochemicals, infrastructure and manufacturing, will all be among the fast-growing sectors in Iran if sanctions are lifted. Since Iran has been economically isolated in recent times, local business practices should be expected; however,

It is critical for investors looking to do business in Iran to seek the necessary legal advice to understand what opportunities and risks may exist in a post-deal world. this is unlikely to deter foreign investors from doing business there. Change and new transparency laws are unlikely to materialize in Iran without engagement between the government and the private sector as well as the active participation of multinational companies. The event was attended by almost 100 ICAEW members and senior business representatives from the major global and regional financial organizations.

ICAEW is a world leading professional membership organization that promotes, develops and supports over 144,000 chartered accountants worldwide.

Gulf Insider November 2015

Business

The Coming

Silver Bubble Precious metals market analyst Ted Butler (www.butlerresearch.com) explains why he believes silver will be the next great investment.

n asset bubble develops when an undervalued asset which has a compelling investment story and there exists an overall financial environment of sufficient buying power, catches the collective interest of the crowd. For example, by the mid-2000â&#x20AC;&#x2122;s and after years of steady appreciation, residential real estate developed into an asset bubble amid the self-fulfilling cycle of continued gains and the availability of easy credit. As far as great stories go, silver has the best potential story to develop into a bubble. First, it is among the most, if not the most undervalued asset of all by objective relative historical price comparison. In addition, it is at or below its primary cost of production, as evidenced in recent quarterly earnings reports. Silver is both an industrial metal and a 22

Gulf Insider November 2015

Silver is both an industrial metal and a primary investment asset, the net effect being that very little newly-produced silver is available for investment. primary investment asset, the net effect being that very little newly-produced silver is available for investment, perhaps only 10% of the one billion oz produced

yearly (mine plus recycling), or 100 million oz annually. At current prices that comes to less than $2 billion per year. Simply put, there is no other asset class which would require less buying to develop into a bubble than silver. Apart from newly-produced silver available for investment, the amount of previously produced metal available for investment, or world inventories, is also shockingly low. As a result of a 65 year deficit consumption pattern that ended in 2005, world silver inventories have been depleted by 90% from the levels existing at the start of World War II. Today, only a little over one billion oz of metal in accepted bullion industrial form exists with perhaps another billion oz existing in coins and bars. That comes to $20 to $40 billion, where most other asset classes (stocks, bonds, real estate and even gold) are measured in the

Business

many trillions of dollars. And please, never confuse what exists with what’s available for purchase. The conclusion is simple – the asset requiring the least amount of buying to create a bubble is, automatically, the best candidate for developing into the biggest bubble. The fuel for any bubble is total (world) buying power versus the actual amount of an asset available for purchase. Previous, as well as prospective, bubbles in stocks, bonds and real estate grew to many trillions of dollars of total valuation. At $200 an ounce, all the silver in the world (bullion plus coins) would “only” amount to $400

delivery timelines of the metal. As is almost always the case, whenever industrial consumers of a commodity are deprived of timely deliveries, they resort to stockpiling that commodity as a remedy, further exacerbating delivery delays to other users. Thus, the stage is set for something the world has never experienced previously – an asset bubble accompanied with an industrial shortage. Either one, alone, would have a profound impact on the price, but the combination seems both inevitable and almost impossible to contemplate in terms of how high the price of silver could be driven. And it’s

of ounces and completely unrelated to the supply/demand fundamentals have set the price of silver. This “COMEX” price control is both the curse and the promise in that it not only explains the undervaluation, it will explain why it seems inevitable for an asset bubble/ user shortage to develop. And that is what the COMEX silver manipulation is – the key ingredient in the greatest investment potential score ever. If silver wasn’t manipulated, there would be scant reason to buy it in my eyes.

Silver’s unique dual role as a vital industrial material and primary investment asset creates a setup for something happening that has never occurred in any previous bubble. billion, not even a rounding error to the total valuation of stocks, bonds, real estate and, even, gold. In other words, due to silver’s current undervaluation and its shockingly small amount in existence, it has more room to the upside than any other asset class. But I’m not done. Silver’s unique dual role as a vital industrial material and primary investment asset creates a setup for something happening that has never occurred in any previous bubble. As and when sufficient physical investment buying develops in silver to drive prices significantly higher, the industrial consumers of silver, in everything from electrical and solar applications to medical and chemical applications, will likely be subject to delays in the customary

hard to see how intense investment buying wouldn’t trip off industrial user attempted inventory stockpiling or vice versa; it doesn’t matter which comes first. Tying everything together, there is one and only one explanation for why silver is so undervalued and the asset bubble/ industrial shortage hasn’t occurred yet – the ongoing price manipulation. Massive amounts of paper contracts traded between two groups of large speculators (technical funds and commercials), measuring in the hundreds of millions

90%

World silver inventories have been depleted by 90% from the levels existing at the start of World War II. Gulf Insider November 2015

Business

Middle East Investors Market Turmoil in Asia Represents a Long-term Opportunity for Middle East Investors.

n sset management firm has urged investors in the Middle East to recognize the longterm investment opportunities in China, despite the country’s cooling economy. In a new report “Capitalising on the Pacific Decade” Nikko Asset Management identifies Chinese monetary policy, historical context, reforms, on-going anticorruption measures, and the continued growth of private enterprise as a positive long-term backdrop for equity investments in China. The report outlines the firm’s current position on Chinese stocks by highlighting historical examples from the US, Japan and Taiwan, where strong equity growth followed a period of supply-driven deflation. In recent weeks, more than USD$5 trillion worth 24

Gulf Insider November 2015

We advise Middle East investors seeking viable long-term assets to recognize and capitalize on China’s new economic frontiers. of assets have been wiped off global equity markets due, in large part, to weak data from China showing a sharp

contraction in manufacturing and central bank measures to devalue the currency. “While we believe economic growth in China is likely to continue to slow in the short-term, we are encouraged by the regulatory and financial reform efforts by Chinese authorities, and expect that the continued liberalization of capital markets will generate strong medium to long-term returns for Chinese shareholders,” said Yu-Ming Wang, Chief Investment Officer – International at Nikko Asset Management. “China’s eventual recovery and future economic success will be fueled by a growing private sector that will inevitably propel China up the innovation curve and fast track its citizens beyond the ‘middle income trap’,” continued Wang. “This is a dynamic that has played out before in some of Asia’s more mature economies, and the indications are the same for China. We advise Middle East investors seeking viable long-term assets to recognize and capitalize on China’s new economic frontiers.” “Bilateral trade and investment flows between the Middle East and South East Asia have always been strong, pointing to a shared recognition of the stability, opportunity and growth each region offers,” said Wang. “The Middle East is China’s primary oil supplier and China, Japan and Korea supply diversified energy expertise, consumer goods and cars to the Middle East. These are strong, mutually beneficial relationships that should continue to develop.” China imports more than 3 million barrels a day from the Middle East, and regional crude oil exports are expected to reach 70% of China’s total oil imports by 2020, continuing to grow until 2035, according to the International Energy Agency. Qatar has invested in Asian companies Citic, Alibaba Group Holding Ltd. and Lifestyle International Holdings Ltd. In April, it opened the Middle East’s first clearing bank to handle transactions in yuan, aiming to boost trade and investment between China and Gulf Arab economies. Such efforts have increased trade between the Middle East and China by more than 600% in the past decade.

Finance

Affluent consumers in the UAE expect more from their banks

n an increasingly competitive retail banking market, nearly three quarters (72%) of affluent middle class consumers in the United Arab Emirates do not see the value in bank reward programmes, don’t find the benefits interesting and don’t feel they can accumulate sufficient points to redeem rewards. A large proportion (58%) only have a basic main bank account with no fees but also no added benefits and 60% have credit cards that lack benefits such as cashback or air miles. This highlights an opportunity for banks and card providers in the region to differentiate themselves and offer additional services such as insurance, assistance and travel benefits. The study of 4,400 affluent middle class consumers (within the top 1015% income bracket), in the UAE, Brazil, China, India, Italy, Singapore, the UK and USA, reveals the changing attitudes and expectations of this group towards banks. It has found that whilst customers in the UAE are more satisfied with their banks than the other countries surveyed, they don’t feel rewarded or recognised for their loyalty and look elsewhere for additional financial services. Nearly two thirds of customers in the UAE (63%) feel more loyal to brands that provide access to rewards and 63% feel more loyal to companies which offer more personalised offers and communications. As a result, retail banks and credit card

Retail banks and credit card providers in the UAE are missing out on the opportunity to create powerful advocates and attract repeat business from loyal customers. providers in the UAE are missing out on the opportunity to create powerful advocates and attract repeat business from loyal customers. Affluent middle class consumers in the UAE who feel loyal to a brand are prepared to recommend a bank or credit card provider to their friends and family (67%), 64% would be willing to purchase more products from them and 52% will pay a premium to use a service, even if it is more expensive. Banks are losing their position as a ‘one-stop shop’ for financial services, with savvy consumers choosing a range of financial service providers. Customers

are increasingly looking elsewhere for additional services. For example in the UK, the preference is to regularly compare the options for services such as insurance, find the best deal and then purchase direct. In contrast in the USA and Singapore, these services are sought via credit card. However when a customer does buy additional products through their bank, they are more loyal, with over half (54%) of these customers globally less willing to switch provider. This highlights a dual benefit of offering more premium services such as insurance and assistance which will increase revenue as well as enhance customer loyalty. Mark Roper, Commercial Director, Collinson Group says, “Whilst the majority of customers in the UAE are satisfied with their banks, the emergence of alternative providers of financial services and the number of customers on more basic bank and credit card services, highlights the opportunity to retain and grow a portfolio of services with those within the top 10-15% of income. Customers see their accounts as a necessity but don’t feel they offer additional value or reward.” “Banks need to act now to protect their current revenue. Middle class mass affluent consumers are increasingly mobile and expect more from their banks” says Roper.

Gulf Insider November 2015

Property

Dubai’s

most expensive apartment

ubai’s most expensive apartment has gone on sale for $50 million – but it won’t be ready until 2017. Sitting on top of the 25-storey ONE at Palm Jumeirah, the luxury penthouse comes with an infinity pool and spa as well as a 12-space garage. The eight-bedroom suite, which sprawls across 42,477 square-feet, is decked with a staggering 16,641 squarefeet of balcony area. As well as a maid’s quarter, a kitchen with a separate prep room and wall-towall windows, there is a professional barbecue pit and outdoor terrace. Described as a ‘private temple’ the lavish complex is due for completion by 2017 and being constructed by Omniyat and Drake & Scull International. The entire building was designed by New York firm SOMA architects and boasts panoramic views of both the ocean and the city. Other facilities include a gym, hair salon and a cinema. Previously, an apartment in Dubai’s Burj Khalifa building clinched the title as the city’s most expensive property after selling for $16.3million. 26

Gulf Insider November 2015

Images: Caters News Agency

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Property

London Super-prime Property Market

n the aftermath of the election of a majority Conservative government in the UK, a greater degree of certainty in the property market was anticipated and caused some sellers to expect a short-term spike in prices, as high as 10%, especially at the top end; this however has failed to materialise.

Gulf Insider November 2015

Vendors have eventually accepted the fact that buyers of super-prime properties are more price-sensitive and more quality driven. A series of changes in the clamour around property taxes have cast shadow over much of the hype on price expectations over the first six months

of 2015. The succession of tax changes in recent years has made it increasingly difficult to argue that high-value residential property is under-taxed. â&#x20AC;&#x153;From the Middle East on the ground we have seen the super-prime property market investment into London experiencing a number of interesting

Property

trends. New home buyers are seen increasingly driven by the property quality and its level of amenities such as a 24-hour concierge service, secure parking and leisure facilities. Furthermore, buyers have become less focused about the pricy locations of super prime properties or the so-called ‘golden postcodes’ and started to look further afield for value in a high-quality super-prime London pipeline. The map of the £10 million-plus sales in London in the year to 30 June 2015 is wider than three years ago and now encompasses areas like the Southbank.” said Victoria Garrett, Head of London New Homes Middle East

volumes across the whole super-prime market shrank by a fifth. Furthermore, price growth at the £10 million-plus level has underperformed the prime central London average, growing 4% in the two years to June versus 10.3% in prime central London. Further changes in July’s Budget ended the permanent status for non-dom residents and widened the inheritance tax net to property held offshore. A nondom is a UK resident whose permanent home, or domicile, is outside of the UK. Some 114,000 UK residents currently claim to be non-domiciled, of which 1,750 were born in Britain. The status allowed many to only pay tax on UK

30’s more than doubled to 14.8% from 7.1% over the same period. “We’re seeing more young buyers from the Middle East who have made their money in Hospitality, property market or oil industry, in addition we find that decisions by purchasers in the Middle East are increasingly being entrusted to the younger generations of families who are often those occupying the property and who have already spent time living and studying in London.” said Victoria Garrett, Head of London New Homes. The percentage of UK buyers above £10 million continued to grow as the country’s economic recovery gathered

earnings, and avoid inheritance taxes. However, the July’s announcement has vowed to abolish the excuse for nondomiciles to avoid tax on UK homes by holding them in offshore companies. Inheritance tax (on properties worth more than £325,000) will be payable within two years on all UK residential property owned by non-domiciles. Another trend in the super-prime property market in London seems to be the younger age of buyers. Figures indicate that some 18% of buyers were under 40 in the year to 30 June 2015 compared to 10.7% in the preceding 12-month period. Furthermore, the number of super-prime buyers in their

pace. UK buyers rose to 37% in the year to 30 June from 34% the previous year. Percentage of Middle Eastern buyers have as well increased from 11% to 16% over the same period, while numbers of Russians buyers decreased driven by the continuous weak performance of the rouble. Furthermore, recent events in Greece and the Chinese stock market show how economic uncertainty can swiftly boost demand for so called ‘safehaven’ assets like government bonds and property. Super-prime properties in London are still playing such a role, especially for foreign wealth coming from the four corners of the globe.

From the Middle East on the ground we have seen the super-prime property market investment into London experiencing a number of interesting trends. The pre-election hassle over the ‘mansion tax’ have spurred concerns among super-prime property sellers and buyers, and overshadowed an important increase in stamp duty that brought into effect last December and these stamp duty changes were not assimilated by the market while the election was on the agenda. The market post-election has not seen the increase in prices or transaction anticipated but is still finelybalanced, sensible pricing being the key. Despite the fact that Knight Frank super-prime sales rose by a quarter in the year to 30 June 2015, a series of factors including political uncertainty and the new stamp duty rates meant

Gulf Insider November 2015

Affairs

Bahrain to host

the fifth annual Arab Aviation and Media Summit The 2015 Arab Aviation and Media Summit (AAMS) will be held in Bahrain on the 7th & 8th of December 2015 in Manama.

unning in its fifth edition this year, the Arab Aviation & Media Summit is an industry initiative committed to improving the state of Arab Aviation & Tourism. The initiative is braced by many leading organizations such as Airbus Middle East, Air Arabia Group, CFM, CNBC TV and The Sultanate of Oman Ministry of Tourism in addition to many supporting partners; and this year’s edition is held in partnership with the Kingdom of Bahrain’s Ministry of Transportation and Telecommunications and Bahrain Airport Company. The 2015 edition will discuss the status of Arab aviation and tourism under the current political and economic climate, and will see industry pioneers from across the region come together to discuss the growing significance of the partnerships between tourism and aviation. Described as the ‘voice of the

Gulf Insider November 2015

The 2015 edition will discuss the status of Arab aviation and tourism under the current political and economic climate. industry’, the Arab Aviation and Media Summit is the largest assembly of Arab media together with top executives from the aviation & tourism industry. AAMS takes place in a different Arab city every year drawing attention to the host city travel and tourism experience as well as facilitating for a large audience of Governments, decision makers and media to share, learn and exchange.

This year’s Summit will bring together an array of international and regional industry experts, as well as media representatives from across the entire Arab World to exchange ideas and strategies to address the challenges faced by the sector. The summit concludes every year with a white paper draft submitted to regulators and decision makers from both public and private sector followed up by a course of action. The report provides the latest insights on the current trends and challenges faced by the aviation-tourism sector in the Arab world and its impact on social and economic growth. Last year, the event took place in Ras Al Khaimah and drew more than 170 participants from 15 countries.

The summit is open for industry peers and Media. To learn more and to register, visit: www.arabaviationsummit.com or call +971.4.3688219.

Affairs

Anti-bribery and corruption report Bahrain Government enforces strict laws on bribery and corruption in the private and public sectors.

Nearly two thirds of companies indicated that M&A is part of their growth strategy, however global business comes up short when considering ABC risks.  Respondents complain they lack the resources to manage ABC risk, ranking fourth overall among the top challenges facing the survey’s respondents.  A top-down risk assessment would help companies set priorities, but executives admit that an ABC risk assessment is one of their companies’ top challenges.  Data analytics is an increasingly important and cost-effective tool to assess ABC controls. Yet only a quarter of respondents use data analysis to identify violations and of those that do so, less than half continuously monitor data to spot potential violations. A similar proportion of respondents (26 percent) couldn’t say either way. “Despite greater efforts to build ABC frameworks, it’s clear that there are gaping holes in them,” says Petrus Marais, Global Leader of Forensic Services for KPMG. “The problem is particularly acute in the management of third parties who increasingly act as conduits for bribes, making it harder to track. Respondents to the survey admit it’s the biggest challenge in the field of ABC, but they are not doing enough to develop a culture of compliance both among their employees and their vendors and other business associates.” The survey targeted 659 respondents covering 64 countries. 

any organizations are seeking to expand their operations overseas as part of their growth strategies. In Bahrain, as well as around the world, globalization has entered a new phase, posing greater challenges for anti-bribery and corruption (ABC) compliance than ever before. Two factors are creating new issues for companies, according to a recent report by KPMG International. First, a growing number of governments around the world are tightening ABC regulations or introducing new ones as we see in Bahrain. In the light of Kingdom’s expanding corporate culture, the government has introduced Law Number 01/2013 to expand the Amiri Decree Number 15/1976, in order to address bribery and corruption across both the public and private sectors. Second, as companies globalize their operations, they rely more heavily on third parties than before to do business in far-flung parts of the world, often in areas where there is a high risk of corruption. Jeyapriya Partiban, Risk Consulting Partner at KPMG in Bahrain said: “the government has worked hard to enforce strict laws on bribery and corruption.

However, as the global report highlights, with GCC based organizations and businesses increasingly investing overseas, reliance on and managing risk with third parties can be a challenge and adequate controls and monitoring must be put in place.” The survey, conducted by KPMG International with respondents from around the world, shows that companies are rising to the challenge but that a great deal more needs to be done to create a sturdy ABC compliance structure. The main findings of the survey include: There is a sharp increase in the proportion of respondents who say they are highly challenged by the issue of ABC, compared with a survey KPMG conducted almost five years earlier.  As companies continue to globalize, the way they manage third parties poses the greatest challenge around ABC programs, ranking first in terms of auditing third parties for compliance and third in conducting due diligence over them.  Despite the difficulty of monitoring their business dealings with third parties, more than one third of the respondents do not formally identify high-risk third parties. 

Gulf Insider November 2015

Affairs

Jeddah Airport What impression of the Kingdom do visitors get at Jeddah airport?

By Tariq A. Al-Maeena

recently read a report that the airport in Jeddah would be completed by mid-2016. Finally, I said to myself, but with some reservation as such announcements in the past have proven to be no more than public relations stunts aimed at mollifying an increasingly irritated army of passengers and patrons. It was in 2009 that I watched the director of the airport on Saudi TV boldly claiming to the late King Abdullah that the project would be completed by 2012 during the late King’s visit to the facility. He was being shown a variety of models and slides when he bluntly asked when the project would be completed and 2012 was the answer. In January of 2014, Prince Fahd Bin Abdullah, president of the General Authority of Civil Aviation boldly stated that the “new King Abdulaziz International Airport with world-class facilities” would be ready by the end of the year. Well, if my calendar is correct, it is well past 2012 and 2014. In fact, it will soon be 2016. What makes Jeddah airport more noteworthy than other airports in the

Gulf Insider November 2015

Kingdom is that it is the primary gateway for visitors to the holy shrines. It is where first impressions are quickly formed. And this airport has been severely criticized in the past for the lax manner with which airline staff as well as custom and immigration personnel deal with arriving passengers. Tired and haggard from long trips, passengers have complained of long delays at immigration counters staffed by indifferent personnel. And once beyond the experience of getting through immigration and passports and out of the arrival hall, visitors face another dilemma. Jussi, a long-term expatriate from Finland captures the scene very well based on personal experience which visitors can relate to. He writes: “I wish to bring attention to a gross and sad practice that all expats and visitors face upon arriving at Jeddah airport. “When we cross the last gate to the public area where family and friends usually meet passengers, we are faced with countless men in their white thobes all crying: ‘TAXI! YOU NEED TAXI!’ Some ask quietly and discretely, while others surround us and speak loudly.

“After being subjected to so many offers, I ask how much and they say: ‘TWO HUNDRED’ which we ignore and continue walking out to the taxi line outside the terminal buildings. They follow us persistently and then bring the price down to ‘ONE HUNDRED FIFTY.’ “I reject their offer as I do not live far and offer them SR50. The men who act kind of official and try to keep order with their badges agree with the prices and try to get the taxis to accept our offer because we live close to the airport. There are dozens of taxis all waiting for the SR150 customers. “This is shameful and very intimidating, because no taxis should be allowed to be in the arrival hall. Taxis should be controlled as they are in Riyadh and in most all international airports. “Riyadh airport is a long way from the city and the maximum a taxi can charge for the trip is SR 80. This first ‘Welcome to Jeddah’ for foreign arrivals is the worst possible, because it shows the kind of rip-off attitude some people have in this fantastic city. It is the worst welcome, because it takes place in an area that can be totally and easily controlled and organized. “So I accept an offer for SR70 by a private limousine driver who is also fed up with the taxi drivers and drives us three blocks from the airport.” Here’s someone telling it like it is. He does not appreciate having to run through a gauntlet of greedy men soliciting fares upon his arrival. His words reflect the feelings of many who are daily confronted with this chaotic atmosphere as they leave the arrival hall of Jeddah airport. And so a word of advice to the airport authorities. While the airport structure is waiting to be completed perhaps by mid-2016 or later, why not take care of the little things that can be done now, such as organizing this stampede of individuals soliciting exhausted passengers? It will not be your buildings only but the total package that will leave a lasting impression on visitors to the Kingdom.

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

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Opinion

A family man in hiding Tariq A. Al-Maeena

ther people’s problems often hit a nerve, a nerve that invokes passion, anger and the need for justice. Such were my emotions when I read a blog by Ali Shah titled “Our lives-KSA.” Ali Shah, the CEO of Ali Shah Consulting Services (ASCS) runs several blogs. He proudly traces his roots to Makkah, directly through the lineage of Ali Bin Abu Talib. He is the great grandson of Syed Siddique Hasan Al-Qanauji, the ruler of Bhopal state in colonial India. Ali was an infant, barely 60 days old, when he arrived in this country several decades ago. He knows of no other home and has become a successful and enterprising entrepreneur, one who has given back to Saudi society in the form of helping Saudi youth find gainful employment. His other services include providing consulting services to expatriate companies and individuals considering opening businesses in this country. He also runs several blogs. The blog piece in question deals with the dilemma of the visa trade. It reads: “A family man. A man with a wife and three kids. An educated man. He was at my office last night. He had a ‘small’ issue according to someone going through his file. 34

Gulf Insider November 2015

“He is listed as ‘huroub’ (an expatriate worker who has run away from his sponsor). He has had this status for the past two years. For the past two years, his kids have not gone to school. For the past two years, he has been working illegally as a private driver to make ends meet and running from checkpoints. For the past two years, his life has been hell. His wife has lost hope and become depressed. His kids simply watch TV all day. “Why does he have huroub status? His sponsor reported this and gave him this status. And then immediately called him and said: ‘Give me SR10,000, and I will remove this status’. The man sent his sponsor the money and then the sponsor disappeared for a year. “Suddenly, last week a man appeared from nowhere and told this man that he would fix the status and get him transferred to a new sponsor. This gave great hope to the family. But then, the man called him and said: ‘Oh! You are wanted by the police because your sponsor reported that you borrowed SR50,000 from him and did not pay it back!’ “He never borrowed this money and there was no paper to prove he did. “The family panicked and begged for

a solution. The man said that he would discuss the matter with the sponsor and get a solution. The sponsor, according to him, asked for SR5,000 and promised he would take back his complaint from the police and release him as well. The victim paid this money. “When I heard this, I went straight to the police station and by luck found a senior officer whom I knew. I asked him about the policy when it comes to reporting money issues. He said they did not get involved unless it’s a ‘bounced check’ case. “Such claims go to court and he doubted very much that a sponsor would go to court without documentary evidence and even if he did, the judge would summon both parties. “The huroub victim was tricked again. So far, his expenses have reached SR25,000. And he is ‘illegal’. This means if the authorities catch him with this status, he will be deported and blacklisted with his family. This also means he cannot work anywhere. This means the family is barely surviving. What did he do to deserve this? What did his wife and kids do to deserve this? “I told him to leave Saudi Arabia. Be blacklisted. Do not return. He looked at me with a wry smile and asked: after 30 years and penniless? Is this what I get for coming to live and work in the land of Prophet Muhammad (peace be upon him)? “I had no words in response.” While Ali Shah may have been stumped for words, I am angry enough to ask: Why is such a situation allowed to exist? Why have the authorities neglected the crimes perpetrated against expatriates through visa trading and extortion? Who are these sponsors selling their visas in the open market and getting rich off hapless workers? Holding workers in bondage and playing with their lives is no different than slavery. Why are these Saudis allowed to violate the norms of humanity through loopholes in the Ministry of Labor? Would somebody answer please!

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

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News

GULF ROUNDUP news around the GCC and beyond

life in the gulf

dnata travel introduces customized tour packages for Muslim customers dnata travel, has developed new tours and services designed to care for the needs of Muslim travellers. “Holidays Tailored for You,” offers Muslim holidaymakers trip packages that allow them to practice their faith easily at a number of destinations, including exotic beach vacations in Zanzibar, action-packed adventures in Kuala Lumpur and cultural excursions in Geneva. These packages include Muslim-friendly hotel accommodations, many of which serve halal food; have prayer rooms on-site; provide prayer mats, Qurans and Qibla indicators in every room; come with alcohol-free minibars; and offer Ramadan-focused catering options.

National health insurance for Qatari expats from 2016 Batelco Supporting Digital Empowerment Project Both national organizations have collaborated over the years to foster educational programmes that support the youth of the Kingdom of Bahrain. Accordingly, Batelco is delighted to support the Ministry of Education’s Digital Empowerment in Education event which is an extension of the King Hamad Schools of the Future project with its aim to establish ICT as part of the national curriculum. The important project was launched at an event held on October 4th at Shaikh Isa Cultural Hall with Ministry of Education representatives and representatives from 16 schools from across Bahrain.

Gulf Insider November 2015

Implementation of the national health insurance scheme (Seha) for expatriates including domestic workers will begin next year through private insurance providers, the Minister of Public Health H.E. Abdullah bin Khalid Al Qahtani has said. There will be three different basic packages for expatriate workers based on their salary structure. They are broadly classified as white-collar and blue collar workers and domestic helps. Insurance for visitors will cover only emergency services. – Zawya

News

‘Letters of Hope,’ Fighting Cancer Campaign

Hollywood star signs Middle East restaurant deal Mark Wahlberg has revealed plans to bring Wahlbugers, his family’s burger restaurant chain, to the Middle East region. Wahlbugers, which now has 70 restaurants in the chain, is owned by Mark and his brothers Donnie and chef Paul – who runs the business. Wahlberg, who is a producer, said the show has been good for the business, helping it to grow in the US and now has plans to expand into the Middle East region. – Arabian Business

Hilton Introduces the First Global Spa Treatment Membership

Letters of Hope, a collection of unique Arabic calligraphy paintings, is the brainchild of Bahraini painter and photographer Dayana Al Shaikh who has been fighting cancer and campaigning in a number of ways to help the cause of cancer patients. Her paintings evoke hope and beauty in a measure beyond the realm of personal feelings. Dayana hopes to draw on her unshakeable faith and immovable hope to touch the lives of young patients who suffer from cancer and help improve their condition by donating all the proceeds from artworks sold at the six-day exhibition last month. – Gulf News

Transforming hotel spa treatments from an extravagance to a monthly must, Hilton Worldwide has launched a global spa treatment membership, The Spa Club. Hilton Worldwide’s Spa Club will be offered at select Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Curio – A Collection by Hilton, DoubleTree by Hilton and Embassy Suites by Hilton properties around the world. All Spa Club members can select the Spa Club location most convenient to them to enjoy one 50-60 minute massage or facial during Spa Club hours each month at a minimum of a 30 percent discount for a 12-month membership.

Saudis top Middle East ultra-rich list Saudi Arabia and the UAE jointly account for over 45% of the UHNW (ultra-high net worth) population in the Middle East, a new Wealth-X study has found. The wealth-intelligence organization defines UHNW individuals as those with $30mn and above in net assets. Saudi Arabia has the largest UHNW population (1,495 ultra-wealthy individuals) and UHNW wealth ($320bn) in the region, followed by the UAE, said the report. The study also reveals that 57% of the UAE’s UHNW population amassed their fortune through entrepreneurship. Only 8% fully inherited their fortune; and 35% partially inherited and grew their wealth. – Arab News Gulf Insider November 2015

News

David Guetta to hit the decks for Dubai New Year’s Eve party Dubai’s favourite and award-winning DJ will ring in the New Year at the Media Amphitheatre. City The French DJ, record producer and remixer will be smashing in the New Year party with all his monster hits including, ‘Who’s That Chick’, ‘Dangerous’, ‘When Love Takes Over’ and of course, ‘Titanium’. Not new to the music scene in the UAE, Guetta has scored six number one singles, sold more than nine million albums and 30 million singles worldwide and has performed with the likes of Rihanna, Nicki Minaj, Sia and Chris Brown. Tickets go on sale this month. – Emirates 24/7

Alshaya Group to open 30 stores in Mall of Qatar Kuwait-based retail franchise operator Alshaya Group has signed a deal to open 30 retail stores and various restaurants in the upcoming Mall of Qatar development. Collectively these brands will occupy around 18,000 square metres in the mall, a statement said. The $1bn Mall of Qatar project is part of the country’s efforts to increase its retail supply. The mall, situated next to the stadium that is expected to host the 2022 World Cup, is set to open in August 2016 with 500 stores and a Carrefour hypermarket. Experts say Doha’s strong population growth and local customers’ affinity towards luxury make it an interesting market for retailers. According to a report released by AT Kearney earlier this year, Qatar overtook the United Arab Emirates as the most attractive markets for retailers in the Middle East. The country ranked fourth in AT Kearney’s Global Retail Development Index, much ahead of the UAE, which was ranked in the seventh position. – Gulf Business

Gulf Insider November 2015

flynas to launch flights between the Saudi Arabia and Bahrain Saudi Arabian national carrier flynas announces the launch of its third destination within the GCC, Bahrain International Airport in Bahrain, following the United Arab Emirates and Kuwait. The service will consist of three flights per week from Jeddah to Bahrain and three flights per week from Riyadh to Bahrain, with flights commencing on 1st December. Six million Saudis traveled to Bahrain in 2014, an increase of 19.3% compared to the previous year, making them by far the largest contingent of visitors from a total of 6.6 million GCC travelers to Bahrain. The significant increase acts as a strong testament to the growing business and leisure travel between the two countries, spurred by Bahrain’s business-friendly climate as well as its appeal as a weekend leisure destination for Saudi families.

Fake Indian notes float around UAE Money exchanges and their customers have been warned to be cautious as perfect-looking fake Indian currency notes are found in circulation in the UAE. The technology used in printing counterfeit Indian notes is so sophisticated that ordinary people or even exchange employees cannot distinguish them from the original notes. The call for caution has come from a teller with a foreign exchange company in Sharjah, who was recently acquitted by the UAE Supreme Court in a fake currency case, and his advocates. – Khaleej Times

Travel

WELCOME TO EGYPT By Khalid Albaih

Cairo International Airport. Friday, 28 September 2014 5:00 am: Egypt Air coming in from

Qatar. Around 300 people are already in the arrival hall, divided into passport control windows unequally. I glanced from afar and see that the last queue has less people. I make my way over, pushing through the other queues, and find out the last queue is a branch of three queues to window number three. There are only three working windows in the arrival hall.

5:45 am: Still in the queue. There are ten other passport control windows that could be open, but aren’t. 6:00 am: Still in the queue. We all stand 40

Gulf Insider November 2015

united against a new arrival who tries to cut the queue. The officers stand with us and take him away. We all cheer and thank the officers. Then, the new arrival shakes hands with an officer. The officer takes him to an empty window, stamps his passport, and the passenger walks through before us.

6:05 am: Two older Yemeni men and I

all reach the passport control counter at the same time. The officer sadistically clicks on the keyboard while checking my passport. He makes a call on speed dial, leaving it on speaker. After one ring, he cuts the call. Another officer shows up as soon as

the officer hangs up. This is the fastest thing that has happened since I landed. He doesn’t tell me what the problem is. The officers talk to each other about me like I’m not even here.

6:30 am: Squeezed into a broken

stainless steel couch in order after me: Two Palestinians boys wearing boy scout uniforms, an older Syrian couple with a teenage child sitting on the mother’s lap, and a curvy Moroccan lady dressed for clubbing. The Moroccan lady’s “friend,’ an overweight young man from the Gulf awkwardly sits on his knees. Facing our broken stainless steel couch is an old, bulky, wooden desk.

Travel

The word ‘reception’ is engraved on it. Behind the desk a heavy, middle-aged, low-ranking policeman stands. Smoking, ash everywhere. His white uniform is almost yellow. I start texting with Dina from ADEF (the foundation that invited me to Egypt) to explain the situation I’m in. She replies instantly: “Welcome to Egypt.”

6:45 am: Everyone still holds position

on the broken couch. I get called to the office of the basha (high government official).



The media camp. Do you want the organization’s number to confirm?

[no response] 

Is this your first time in Egypt?

No. 

You know anyone here?

I have family here. Egyptians. 

Why are you here?

I was invited to take part in an Arab Media Camp in Ismailia. Do you want to see official invite? No

beard and a ponytail talking on the phone – “Yes, they will deport me back to Gaza ... I’ll come again.” An Arab looking man talking to a group of new comers in broken Arabic – “We been here for two days! Our mom is here with us as well… they take ages with the paper work.” The North African with the Mohawk advises an African man in his early twenties – “They make sure you have food and a roof over your head, it’s a small place but in a few years you will get the passport.”

The officer sadistically clicks on the keyboard while checking my passport. He makes a call on speed dial, leaving it on speaker. After one ring, he cuts the call. 7:00 am: In the basha’s office for a

while. I was told not to speak. The basha is in his mid twenties. He writes on a slip of A4 paper with a blue pen while inspecting my passport with a poker face. Another basha is on the opposite side of the room. There is no computer on either of their old wooden desks.

7:30 am: Five full pieces of A4 paper are in the middle of my passport now. The basha starts speaking to me abruptly: 

What’s your name?

Khalid Why are you here? I was invited to take part in an Arab Media Camp in Ismailia. Do you want to see an official invite? No 

Same questions over and over again. The basha doesn’t write anything during the questioning.

9:30 am: Detention center. A room and

a bathroom with a plumbing problem you can smell. 12 men. Four double beds. Two already occupied. A few scattered chairs. One high window with eight men standing around smoking. I over hear things: A dark skinned older man in a dark gray suit talking in an Egyptian accent to a younger North African-looking man with a Mohawk, wearing a tracksuit – “I had nothing to do with the Russian group’s fake passports! My office told me to help them finish their travel arrangements to Europe. That’s my job! I shouldn’t be here.” A middle-aged, Palestinian man with a

11:45 am: The cleaning lady does not clean, and instead asks if anyone wants cigarettes or food. She accepts any currency and adds two pounds to the price. I order water and a cheese sandwich. 1:00 pm: I wake up to the voice of the officer calling my name. He won’t tell me where we are going. I never got my water or cheese sandwich. “Welcome to Egypt,” the reception officer says as he gives me back my passport.

Gulf Insider November 2015

Travel

Halal Tourism

Leads Global Travel Sector Report suggests Muslim expenditure on tourism set to reach $238bn by 2019.

estinations, hotels and resorts, airlines, and travel agents are increasingly looking to woo Muslim travellers. This is evident by the sudden growth in number of Halal travel conferences and events from Indonesia, Japan, to Spain and the topicâ&#x20AC;&#x2122;s prominence in global media. Compiled for the third consecutive year, The State of the Global Islamic Economy Report examined trends and statistics across key sectors that comprise the US$2 trillion Islamic economy, wherein consumers also include those outside the Islamic faith who share similar values. Research indicates outbound travel expenditures by Muslims globally has

Gulf Insider November 2015

Growth of the Muslim population and its increasing disposable income has caused millions to increasingly take up travel for leisure, adventure and exploration.

increased 7.7%, reaching $140bn in 2013, excluding Hajj and Umrah, and is the highest compared to the US and China. Total global spending during the same period is estimated to be $1,212 billion, making the Muslim travel market to be 11.6 % of global expenditure. That figure is expected to reach $238 billion by 2019. Growth of the Muslim population and its increasing disposable income has caused millions to increasingly take up travel for leisure, adventure and exploration. When Muslims travel, however, they are keen to observe religious obligations such as daily prayers, modesty in clothing, crossgender interactions and Halal Food. Hajj and Umrah (pilgrimage to Makkah) has

Travel

also inspired millions of Muslims to travel away from their homelands, not only for pilgrimage, but to other destinations as well. There is a wide diversity in awareness and adoption of various Islamic practices by Muslim travellers. A big segment of Muslim tourists will travel to global nonMuslim destinations such as Europe and adjust to any limitations by seeking alternatives to Halal Food and religious considerations. Meanwhile, a big segment travelling globally is seeking options that address their religious considerations.

Top source countries of Muslim tourists based on 2013 expenditure are Saudi Arabia, Iran, United Arab Emirates, Qatar, Kuwait and Indonesia. Russia, Germany, United Kingdom and France are the four largest Islamic tourism source markets from countries where Muslims are a minority.

Key Opportunities in Halal Travel Sector The report suggests there is a large overlap between Muslim friendly travel and family-oriented travel that allows for targeting Muslims and non-Muslims alike and the industry should take advantage of that in its positioning and marketing messaging. There are opportunities to offer

themed travel trips to Muslim travellers including Ecotourism, Adventure travel, Wildlife Tours and Volunteerism. Muslims around the globe are eager to travel and try new experiences and businesses should strive to fill this void. For example, Bosnia Travel, based in the UAE, offers philanthropic trips to Bosnia in which visitors interact with the local community and are able to partake in charitable work. A high growth market is the Middle East wherein major hotel brands such as Accor plans to have 100 hotels by 2017. Elsewhere, hotels striving to be

Muslim-friendly should not just focus on serving Halal Food and drink, and providing segregated swimming pools but also ensuring that their entire operation is in accordance with ethical Islamic principles, from financing, to their treatment of employees and giving back to the local community. There is a significant opportunity for investors in businesses serving the Muslim travel market. Halal Food is one such sector that continues to be a main focus in non-Muslim majority markets, including, social media and digital marketing platforms such as CrescentRating — Halal Trip, HalalBooking.com and Serendipity tailormade: a UK-based specialized travel agency.

The Challenges of Niche Marketing Businesses should be wary they do not alienate non-Muslims while serving Muslim needs. There is a need for common standards and a uniform classification method since businesses and destinations use the terms ‘Halal travel’ ‘Halal tourism,’ ‘Muslim-friendly’, and ‘Islamic travel’ interchangeably, making it hard for the Muslim traveller to know what to expect. Muslim-friendly hotels should also discover additional revenue streams since they do not receive income from alcohol that mainstream hotels rely on. Despite demand, there are many five-star hotels and resorts in Muslim countries that ban women from swimming while wearing a burkini (the fully covered swimsuit for Muslim women). This is a setback towards being Muslim-friendly. Most importantly, offering Muslimfriendly services are often affected by the political environment and religious inclinations of the country’s ruling party. Businesses should review how Muslimfriendly efforts would be affected if their current government is replaced by a secular one.

The State of the Global Islamic Economy Report (2014-2015) is supported by Dubai Islamic Economy Development Centre (DIEDC) and is produced by Thomson Reuters in collaboration with DinarStandard.

Facts & Figures The most popular destination countries for Muslim tourists are Malaysia, Turkey and the UAE.



Hajj and Umrah, is a fast growing segment given the major expansions projects underway in Saudi Arabia to accommodate the tremendous demand. Research estimates there was a total 5.7 million Hajj and Umrah international pilgrims (not including domestic) with total expenditure on Hajj and Umrah at $16.2 billion (including air travel) in 2013.



Gulf Insider November 2015

Life

Advertorial

Al Areen Palace & Spa Enhances Local Tourism

Bahrain’s first 5-star in-villa style luxury resort will continue to develop its amenities and expand The Lost Paradise of Dilmun Water Park in partnership with Avenue Ventures.

ed by the holding company and Imaad Zuberi the chairman of Avenue Ventures, the expansion plan includes several attractive and exciting features for both the resort and the waterpark. These new developments will allow both destinations to continue to offer worldclass facilities for guests and tourists. The Al Areen Palace & Spa will continue to increase its wellness center services by offering a wide variety of holistic treatments and expansion of the facilities. Additional resort features to be built include the creation of Bahrain’s longest Cascading Pool with mini slides, a kid’s pool and a prominent alfresco dining and bar along the pool. The Lost Paradise of Dilmun Water Park will expand by adding new water attractions including rides, slides, restaurants and various other infrastructure improvements to the waterpark. “Bahrain is a great country to invest 44

Gulf Insider November 2015

in, with properties such as the Al Areen Palace & Spa and The Lost Paradise of Dilmun Water Park because of its good investment climate for foreign investors,” American partner, Imaad Zuberi said. “Bahrain is the only country in the Middle East with a free trade agreement with the US.” The opulent desert resort spanning over 32 acres, features 78 luxuriously appointed pool villas that showcase Arabian charm with stylish contemporary flair. It is the first resort in-villa style hotel in the Kingdom of Bahrain. The spa is the largest spa in the Middle East boasting world-class technological and rejuvenation features. The Lost Paradise of Dilmun is Bahrain’s biggest water park with over twenty exciting rides, pools and slides catering to all age groups and demographics, especially families. The park’s expansion will continue to offer world-renowned entertainment attraction. The addition

of a new multi-level parking building will better accommodate its growing number of guests. Imaad Zuberi explained both properties have witnessed increased revenues in the last two years, impacting the local tourism sector positively, along with several luxury properties that recently opened in Manama.

The majority of the resort guests and water-park visitors come from the local market (20%), from the Kingdom of Saudi Arabia (45%) and from Kuwait (30%), mostly during public holidays. Al Khobar, the largest Saudi border city, is only one hour away from Al Areen Palace & Spa and The Lost Paradise of Dilmun Water Park. Al Khobar is the base for petrochemicals manufacturers, Saudi Aramco and Sabic. Both companies are ranked among the world’s largest with a global workforce of 100,000 talented and high-income individuals. “Bahrain and its leadership has been credited for securing an attractive investment climate and safety at all levels which contribute to the investment flow. This partnership is based on the good reputation of the Kingdom of Bahrain,” Chairman of the project company, Rashad Janahi said.

Best in no padding, just info!

November 2015

YOUR Guide to the BESTâ&#x20AC;Ś

Bahrain

Events - Page 04 Dining - Page 14 Nightlife - Page 28

Events - Dining - Nightlife

Bahrain101, reveals the best in dining, nightlife, and events in Bahrain.

Issue 07

We do not try to include all places, just the best places.

New Section -

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Life

o. N e l i f o r P Insider

Arif Feroze Freelance Photographer

ow long have you been practicing photography? What is your area of specialization? I’ve been practicing photography for about eight years now and it goes well with my other work that entails TV commercials, documentaries and series. I did a course in Mass Media and Advertising in 2008 when I became curious about photography and filming. I then started working for a production house at the grassroots level to learn whatever I could. I’d say my desired area of specialization is nature and wildlife photography.

Being in the art industry, how do you feel about Bahrain’s market in terms of photography business? Do you take up assignments elsewhere in the GCC? Being a photographer here is tough. In such a small country, it is overrun with many people who own a DSLR and claim to be “pro”. Many offer photography at very low prices which spoils the market. Most people need to understand the difference in the quality of an amateur from that of a professional, and that quality is better than quantity. So far I’ve travelled and worked across the region. I really like working in Oman; the people are lovely and the place is beautiful. What has been your greatest success in your career? Do you feel photographers are recognized enough in the Middle East? An ambitious step was to leave my full-time job and become a freelancer. I was scared and wasn’t sure if I would be able to survive without a steady income. Photographers are being recognized and appreciated here, but a sense of professionalism still lacks. We’re taken for granted, many people don’t take this profession seriously. They think anyone can do this job and that it’s just a matter of clicking the button on a camera. The

right exposure is still not given to people who are good at photography. Bahrain still works on ‘networking’ rather than the quality of a professional’s work. Who or what has been your motivation? I never had a favorite artist, but my motivation has always been National Geographic. I was lucky enough to work with a team from Nat Geo when I started out in Bahrain; they were here to film Hawar Island’s wildlife. I have always been amazed by their work. Photos and videos by Nat Geo are distinguished, vivid and filled with emotion. What is your main ambition and how do you plan on getting there? Where do you see yourself five years from now? I feel a sense of calm and relaxation when I am taking photos outdoors, in the wild. I love every aspect about nature, it can be beautiful and delicate or gruesome and deadly. My ideal job would be to be a travel or wildlife photographer. I don’t know how I’ll get there, but I do know that I want to take photos of nature and learn more about it. Where do I see myself five years from now? I’ll answer that question five years later. Kindly share some advice for aspiring photographers and artists. Display self-confidence without getting too conceited.

Tel: +973 36752528 Blog: www.ariferoze.com Arif Feroze Photography ariferoze

Gulf Insider November 2015

Style

iphone 6S review

Why I regret upgrading from an iPhone 6 to an iPhone 6S. By Dave Smith

bought the new iPhone 6S. Honestly, it’s not much different from the last iPhone. “The only thing that’s changed is everything,” says Apple in its TV ads for the iPhone 6S. But in day-to-day use, I’ve hardly noticed any meaningful differences. The fact that it looks completely identical from the outside doesn’t help. Sure, the cameras are better, photos can now “come alive,” and 3D Touch lets you access shortcuts and new menu options for your apps. But these features have had a minimal impact on how I actually use my phone.

play out before and after each shot was taken. It really helps photos feel more like living memories instead of pixels frozen in time.

Using the iPhone 6S feels no different than using the iPhone 6. The biggest change is not 3D Touch

Here’s what I think of all of these new features:

The cameras.

 Both front and rear cameras offer more megapixels to capture more details in your photos. But you won’t notice much of a difference in photo quality if you mainly view all your photos on your iPhone, like I do. (You’d probably notice the differences more if you ported those images to a larger monitor.) Selfies do look considerably better, but I’m personally not into selfies.

Live Photos.

 This is probably my favorite new feature. I’m not a huge photo-taker, but I do love that I can swipe or touch these photos to see moments



3D Touch.

Despite being a pretty nifty trick (and an addicting behavior), 3D Touch is not all that useful just yet. Most apps don’t work with 3D Touch, and they create unpleasant feedback when you try to press into them. As for the few apps that do support 3D Touch, those work quite well. Being able to immediately get directions in Maps, for instance, or launch your camera’s selfie or video recording modes is pretty neat. But at most, 3D Touch is only saving me one or two extra taps. Some apps, like Apple’s Mail app, don’t actually save me any time

using this feature. “Peek” and “pop” in Mail is just a substitute for tapping on a new email, but it’s no more efficient. It’s fun to use, but it doesn’t feel like a game changer right now. To me, using the iPhone 6S feels no different than using the iPhone 6. The biggest change is not 3D Touch, but all the new camera features, so your opinion of the phone will likely depend on how often you take pictures or notice minute details in your shots. Upgrading from the iPhone 6 didn’t feel worth the price of admission for this new phone. At the same time, I would love this phone if I’d upgraded from an iPhone 5S or earlier. If you missed out on the iPhone 6, this is just a tad more refined and a little more snappy: One great example is Touch ID, which is significantly faster at recognizing your fingerprint, getting you into your phone almost instantly. In general though, the iPhone 6S feels like the most modest “S” iPhone upgrade yet. The new features are cool at best, but only moderately useful. If you own an iPhone 6, you’re not missing much if you choose not to upgrade. Unless you plan on changing the size of your phone — upgrading to a bigger screen, for instance — don’t spend your money this year. Wait until the iPhone 7.

Gulf Insider November 2015

Motors

CAR NEWs covering the latest updates from the region

Ferrari 488 Spider â&#x20AC;&#x201C; Coming Soon To be viewed for the first time in the Middle East during the Dubai Motor Show 10-14th November, the 488 Spider is the most powerful ever mid-rear-engined V8 car to feature the patented retractable hard top along with the highest level of technological innovation and with cutting-edge design. Ferrari was the first manufacturer to introduce the RHT (Retractable Hard Top) on a car of this particular architecture. This solution ensures lower weight (-25 kg) and better cockpit comfort compared to the classic fabric soft-top. Just like previous spider versions, this car is aimed at clients seeking openair motoring pleasure in a high-performance sports car with an unmistakable Ferrari engine sound.

BAIC A1Sedan and Hatchback make their grand debut Motorcity has unveiled an entirely new brand, the BAIC range comprises of passenger cars targeted to the entry level consumers in Bahrain. BAIC A1 hatchback and A1 sedan offer an efficient performance with 1.5-litre DOHC engine delivering a power output of 113 HP with MIVEC variable valve timing technology, mated with a 4 speed automatic transmission. With Eagle-Eye styled headlights and wing-like bumpers, the A1 series provides a strong aesthetic appeal within its segment

and the stylish exterior gives a dynamic look to the cars. The combination of beige and black for the interiors enhances the spacious cabin which can seat 5 passengers comfortably. The BAIC A1 range addresses comfort and convenience features which include sunroof, cruise control, leather upholstery, power windows and mirrors, 6.5â&#x20AC;? touch screen, and a music system with 4 to 6 speakers with USB, MP3, Radio, and AUX socket.

Motorcity has announced an exceptional starting price of BD 2,950 onwards for the A1 range. For more information or to book a test drive call 17 621 162 or visit www.motorcity.com.bh. 48

Gulf Insider November 2015

Motors

Hyundai Marks Three Million Middle East Sales Now firmly established as the second biggest automotive manufacturer across the region, Hyundai arrived in the Middle East in 1976. Almost four decades on, the brand has enjoyed success right across the region. To mark this occasion, customers purchasing Hyundai models can now take advantage of a new 5 years/100,000km warranty package. Having sold over 667,000 units to date, the Elantra is by far the company’s most popular Middle East model. The Sonata, which saw its seventh generation version launched in the region just last year, has recorded sales of over 321,000, while the Tucson took the honours in third place with sales exceeding 242,000 units.

The new MercedesBenz GLE 400 4MATIC Coupé The Revolutionary 2016 Veloster Turbo The 2016 Veloster Turbo derives its power from a 1.6 litre Gamma Turbo GDI engine and a 7 Speed Dual-Clutch Transmission showcasing a perfect combination of manual transmission and automatic transmission. The 1.6-liter turbocharged, engine produces 201 horsepower at 6,000 rpm and 195 lb.-ft. of torque from 1,750 rpm. The 2016 model has received a revised appearance with an 18inch alloy wheel design and wider front grille. Its breakthrough 7 speed dual-clutch gearbox provides quicker shifts and faster accelerations combined with better performance.

Combining the agility of a sports coupé and the versatility of a robust SUV – the new Mercedes-Benz GLE Coupé is set to revolutionise the premium SUV segment that has enjoyed worldwide success since it was established by the leading German luxury automotive manufacturer in 1997. The GLE Coupé is a high performance SUV that is supremely comfortable on any terrain. Adventurous like an SUV, agile and elegant like a coupé, this is an expressive masculine vehicle for today’s SUV driver looking to take on any number of challenges. The GLE 400 4MATIC Coupé is powered by a thrilling 333-hp biturbo V6 engine that, combined with its sleek exterior, maximizes handling and responsiveness. With DYNAMIC SELECT that includes five settings to allow you to personalize the engine, steering and efficiency controls at the flip of a switch.

Gulf Insider November 2015

Motors CAR insider

Volvo XC90 Nick Cooksey drives the latest high tech SUV in Bahrain.

he Volvo XC90 is a 7 passenger luxury crossover, and it’s technologically state-of-the-art! It can park itself, steer itself, keep its distance between vehicles while driving, it can detect pedestrians, and it stops you from driving into oncoming traffic… And it comes with its own smartphone app. This interface is where you control most of features including climate control, navigation, adjust the seats etc., all on one tablet-sized screen. The new infotainment system does not use the usual iDrive-like control knob, instead using a vertically oriented 9 inch iPad like touch screen. On the map, you can pinch or double tap to zoom. From the home screen you swipe left for a panel of vehicle settings or swipe right to cycle

Gulf Insider November 2015

Volvo’s new Drive-E engine is a 2.0-liter four-cylinder with a turbocharger and a supercharger which provides a total output of 320 bhp. through the audio sources and open apps. The home screen displays four informational tabs—navigation, audio, phone, and the most recently used app—that expand for full functionality

when tapped. Climate controls occupy the lower edge of the display regardless of which screen you’re viewing. The 10-way power-adjustable front seats are leather and have their own air conditioning so they kept me nice and cool during the couple of days I had this car. They are also noticeably comfortable. Yes, I know all modern car seats are now ergonomically designed and should be comfortable, but strangely this is not the case – even on some of the more expensive cars. The designers of this car didn’t just follow the crowd, so instead of the usual push button to start the engine as seen in most other cars today, Volvo decided to be different and the XC90’s engine fires to life with the twist of a knob located on the centre consol.

Motors

Starting Price: BD 22,000

comfort and safety that happens to be sporty, and I very much enjoyed driving it over the couple of days that I had it. Its interior is luxurious in the Swedish sense, which means using the best materials while remaining simple and functional. It has a very pleasant feel to it, and with 85.7 cubic feet of space, it has among the largest cargo capacities in its class. Being a Volvo this car is full of the latest and best safety features known to man. It is brimming with all the cutting edge technology including automatic emergency braking assist, lane departure warning, rearview camera, rear parking sensors, 360-degree surround view camera system, adaptive cruise control, lane keep assist, rear collision warning, blind spot monitoring… and much, much more! Volvo is famous for their emphasis on safety, and their most ambitious safety aim to date is their Vision 2020 initiative - to produce cars so safe that by 2020 no occupants will die or be seriously injured in any collision. Volvo say they believe they will achieve this goal.

To arrange your own test drive in Bahrain contact Motor City on +973 1773 6222.

Winner of: 

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The 19 speaker Bowers & Wilkins stereo sound system is excellent, though every time the car goes above 120 kph the volume drops radically and a buzzer sounds twice to tell you off for being so reckless as to be going so fast. This can be annoying, particularly if in highway traffic where you were trying to listen to the radio while driving at a variable rates that take you above and

below this arbitrary speed. Volvo’s new Drive-E engine is a 2.0-liter four-cylinder with a turbocharger and a supercharger which provides a total output of 320 bhp which is impressive, enabling this SUV to go from zero to 100 kph in just over 6 seconds. There’s an 8 speed auto gearbox and all-wheel drive comes as standard. But this is not a sports car, rather it’s a car built for

Car & Large SUV of the Year 2015 - Auto Express New Car Awards Best of the Best Product Design Red Dot Awards Connected Car of the Year 01net.com

Price Comparison Mercedes GL From BHD 38,000

Audi Q7 From BHD 28,200

The author of this article, Nick Cooksey, in addition to being publisher of Arabian Magazines and Gulf Insider Media, is a jury panel member of the Middle East Motor Awards. Gulf Insider November 2015

Motors

Drones come to the Gulf UAE Drones for Good Award Hosted Middle East’s Largest-Ever Drone Zone at GITEX Technology Week 2015.

he UAE Drones for Good Award and Dubai World Trade Centre (DWTC) hosted the Middle East’s largest-ever live drone activation zone at GITEX Technology Week 2015. Unmanned Aerial Vehicles (UAVs), widely known as drones, can range in size from five centimetres to 50 metres and are seeing strong take-up across multiple major industries. Drones are already used in construction to inspect development sites for safety, while healthcare providers are exploring drones as a vehicle to remotely deliver medicine from hospitals to patients. Drones are also being adopted by Smart City planners to support public safety efforts. Demonstrating the growing demand for drones, the UAE Drones for Good Award predicts that the global drone industry will create up to USD 10 billion in economic impact and more than 100,000 jobs by 2025. In particular, the global market for commercial and civilian drones is set to grow at a CAGR of 19 percent from 2015 to 2020, nearly quadruple the rate for military drones, according to BI Intelligence. Regionally, the UAE Drones for Good

Gulf Insider November 2015

Award is driving drone innovation with its annual competition, which saw 800 submissions from 57 different countries in the inaugural event held earlier this year.

The UAE Drones for Good Award predicts that the global drone industry will create up to USD 10 billion in economic impact and more than 100,000 jobs by 2025. A selection of the Drones for Good winners and leading drone manufacturers showcased their pioneering drones at GITEX Technology Week’s new GTX Horizons zone in The Plaza. Alongside

the drones cluster was a state-ofthe-art Robotics display featuring global launches from Robotics Zone Partner DigiRobotics, and a Future of Transport area. Switzerland-based Flyability won the Drones for Good USD 1 million first prize for its Collision Resistant Drone for search and rescue missions. Additional winners included New York University Abu Dhabi, whose drone can help to preserve wildlife in Wadi Wurayah National Park; and Etisalat, whose drones can expand wireless network coverage. “The amount of innovation in drone space is growing exponentially across industries ranging from filmmaking, agriculture, utility inspection, and search and rescue. We’re dedicated to see the creative and innovative potential of this technology continue expanding in the Middle East,” said Michael Perry, Director of Communication, DJI.

For more information on the 35th GITEX Technology Week. Visit: www.gitex.com. For more information on the UAE Drones for Good Award, visit www.dronesforgood.ae.

Art

The most beautiful mosques in the world- Part 3

Badshahi Mosque, Pakistan Lahore is not short of beautiful mosques. The Badshahi Mosque, commissioned by the sixth Mughal Emperor Aurangzeb in the 17th century, is built in red sandstone and marble, and has a courtyard spreading 279,000 sq ft. The mosque’s large minarets were supposedly used for storing zamburahs – light guns – in the Sikh civil war in 1841, while the British used the building as a military garrison during the period of the Raj. Repairs during the 20th and 21st centuries have seen the building restored to a much finer condition than during its time for military use.

Ubudiah Mosque, Malaysia Built between 1913 and 1917, this place of worship in the royal town of Kuala Kangsar, Peninsular Malaysia, is often touted as the country’s most beautiful mosque. With four minarets and a golden dome, it was designed by Arthur Benison Hubback, a British architect who was also behind the Kuala Lumpur railway station.

Gulf Insider November 2015

Art

Sultan Salahuddin Abdul Aziz Shah Mosque, Malaysia Malaysia’s largest mosque can be found in Selangor, Peninsular Malaysia, and is built in modernist Malay style. It has inscriptions by an Egyptian calligrapher alongside bluestained glass windows, and its aluminium dome is covered with steel panels engraved with verses from the Koran. It has the capacity to accommodate 24,000 worshippers.

Faisal Mosque, Pakistan

Wazir Khan Mosque, Pakistan

The world’s fourth largest mosque stands against a backdrop of the Margalla Hills in Pakistan’s capital city, Islamabad. Its contemporary design was conceived of by Turkish architect Vedat Dalokay, and its eightsided concrete shell is inspired by a Bedouin tent and the cubic Ka’aba in Mecca. The Faisal Mosque is described in the book The Kite Runner by Khalid Hosseini. The Foreign Office advises against travel to large parts of Pakistan: check their latest advice before travelling: gov.uk/foreigntraveladvice/ pakistan

Also in Pakistan, in the northeastern city of Lahore, is the Wazir Khan mosque, built in the 17th century under the reign of Shahabuddin Muhammad Shah Jahan. On the “tentative” list for Unesco World Heritage Site status since 1993, it is built in cut and dressed bricks laid in kankar lime, with some red sandstone in the gate and the transept, and is adorned with fresco paintings and tiles, with the predominant colours lajvard (cobalt), firozi (cerulean blue), green, orange, yellow, and purple.

Gulf Insider November 2015

Art

Bahrain’s Photo History

Each month Gulf Insider will publish photos showing Bahrain in past times. To view many more visit Gulf-Insider.com and LIKE Gulf Insider on Facebook to receive new (er… old) Bahrain photos almost daily. Sheikh Isa’s guests Sheikh Isa Bin Ali Al Khalifa ruler of Bahrain (reigned 18691932) in the corner of the room (holding a sheathed sword with both hands a symbol of authority for arab Sheikhs at the time) Yusuf Kanoo on the left mugbil al thukair’s face peeking out on the right in addition to jacques cartier’s white shoe and their walking sticks at Sheikh Isa’s house in Muharraq, March 1911.

Literary Salon Jacques Cartier, seated 3rd from the left in formal arab attire mugbil al thukair and Yusuf Kanoo seated 2nd & 3rd from the right respectively with three unidentified gentlemen (in what appears to be mugbil al thukair’s literary salon at his house in Manama a precursor to the literary salon he founded two years later in 1913 with a number of local literary figures) march 1911. 56

Gulf Insider November 2015

Sheikh Isa’s guests From left to right: mugbil al thukair, Yusuf Kanoo, and jacques cartier on the doorstep leaving after being received by Sheikh Isa Bin Ali Al Khalifa at his house in Muharraq, March 1911.

Art

The Old Customs House The old customs house in Manama, March 1911. (stood on the site of Bab Al Bahrain)

Bahrain’s Freshwater Submarine Springs jacques cartier and his assistants accompanied by their host mugbil al thukair are shown one of Bahrain’s many undersea freshwater springs near the island of Muharraq march 1911.

Bahraini Merchants from right to left: Yusuf Bin Ahmed Kanoo, Salman Bin Hussain Matar, Jacques Cartier, Mugbil Abdulrahman AL Thukair, and an unidentified pearl expert march 1911. (contrary to earlier accounts about the location of this picture local historians believe that it was taken during Jacques Cartier’s visit to the house of prominent pearl merchant, Salman Bin Hussain Matar, in Muharraq)

Al Thukair’s Luncheon (al thukair’s guests) from right to left: Maurice Richard Cartier’s sales assistant, Yusuf Kanoo, Jacques Cartier, host mugbil al thukair, and an unidentified guest at al thukair’s house in Manama, March 1911.

Ready for the Plunge Fully geared up for the dive march 1911.

Pearl Merchants Two pearl merchants at al thukair’s house in Manama, March 1911. Gulf Insider November 2015

Last Word

expected to support it. Google workers, for instance, are encouraged to spend up to 20% of their time on projects other than their own work. Yet when it comes to working from home, the company line is to keep it to the barest minimum, unless it involves putting in extra hours after leaving the office. When even hyperconnected tech companies that want you to take time off work, at work, frown on working remotely, the suggestion that it’s all about controlling employees seems to stand on shaky ground.

The Problem

in Working from Home

f you give employees the right to telework, be careful! Although productivity may increase in the short term, working from home may prevent your teams from working effectively. When Yahoo CEO Marissa Mayer sent a letter to all employees rescinding their right to work from home, gasps of shock were heard across the world. The Yahoo decision brought teleworking back into the spotlight for organizations and their staff. Towering above the should-theyshouldn’t-they debate was this unasked question:

Why Not? Why don’t we all work from home? After all, this is the age of hyperconnectivity, always-on devices, and high bandwidth connections. The intuitive answer would be that many companies worry about losing control of their employees. Yes, remote workers may indeed be more carefree, happier and productive, but that doesn’t mean they’re good for their companies. A company is more than just the work that needs to be done, plus the workers who are there to do it. A healthy organization has a culture 58

Gulf Insider November 2015

We need to be one Yahoo!, and that starts with physically being together. Speed and quality are often sacrificed when we work from home. that allows the sharing of values and ideas, the formation of a corporate identity, and the sense of competitive urgency that allows a company to be agile and innovative. However, working from home can fail to fire up remote workers in the same way as a shared company environment. As a result, companies suffer.

The Case Against Teleworking Resistance to teleworking comes from companies that would normally be

Creativity And Institutional Memory Ultimately a company is only as good as its people. The value of each worker centers on the knowledge they have and the knowledge they can gain. In work environments that see coworkers mingle, some real learning gets done. A lot of information exchange takes place, which allows the very same workers to increase their value to the organization. They’re able to tap into this undocumented flow of information and knowledge. Marissa Mayer’s oft-cited letter to Yahoo employees stated: We need to be one Yahoo!, and that starts with physically being together. Speed and quality are often sacrificed when we work from home. She wasn’t referring so much to the quality of work done as to the qualities that employees bring to a company when they get together. She probably learned this while at Google. It’s a sentiment echoed by Google’s CFO, Patrick Pichette. In an interview with Australian journalist Ben Grubb, he explained Google’s counterintuitive anti-teleworking stance: There is something magical about sharing meals. There is something magical about spending the time together, about noodling on ideas, about asking, “What do you think of this?” Magical or not, the fact remains that teleworking generally doesn’t work well, because corporations still haven’t solved the issues of remote learning, knowledge sharing, or firing up ideas. If that “magic” is to happen, you still need office face-time.

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