Gulf Insider February 2015

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Issue 121

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Art - Mayasa Al Sowaidi Interview - Jamal Fakhro

BAHRAIN’S NEW REAL ESTATE LAW Protects Buyers and Tenants?

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BAHRAIN’S NEW REAL ESTATE LAW Protects Buyers and Tenants?

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CONTENTS February 2015

WORK Business

INTERVIEW: JAMAL FAKHRO Business

GCC HELPS DRIVE EMERGING MARKETS Property

58

ABU DHABI MARKET GROWING Property

DUBAI’S COMMERCIAL MARKET OUTLOOK Affairs

LIVING DANGEROUSLY

Affairs

62

BRITISH IN AFGHANISTAN

PLAY

14 40 18 44

Travel

26 48

Life

28 50

Style

30 58

Motors

32 62

Art

5 SUPER SUCCESSFUL PEOPLE SHARE TRAVEL TIPS Life

FINE DINING: V-DAY DINNER IDEAS

THE RICH KIDS OF TEHRAN

TOKENS OF LOVE

CAR REVIEW: 2015 VOLVO XC60

MAYASA AL SOWAIDI

The Arabian Review Publisher & Editor in Chief - Nicholas Cooksey Editorial - Agnieszka Piechoska Contributors - Doug Alexander - Hugh Haskell-Thomas - Nicholas Cortes - Joyce Karan - Jacob Tomsky - Bill Daly

COMMENT...

Layout Designs - Dhanraj S Business Development - Redia Castillo Sales Co-ordinator - Syamily James Admin & Finance - Nikesh Pola

The butterfly effect

Photography - Harold Tejada - Bench Medina

A while back I was sitting on the plane waiting for takeoff when the captain announced the flight would be delayed due to a construction crew digging up an unexploded bomb from World War 2. Since it was so close to Frankfurt airport they were shutting down all air operations. The delay meant I missed my connecting flight to Bahrain. Many other passengers were similarly affected. Here we were, a plane of over 200 people in the 21st century, suffering the consequences of a decision made by someone at least 70 years ago.

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

This got me thinking as to how the decisions we make, and particularly those made by political leaders, can have incredibly long-lasting effects.

The decisions made today can have the power to change life for future generations – both for better …and worse.

Published by:

Media P.O. Box 60357, Kingdom of Bahrain Tel: +973 1700 4575 Fax: +973 1772 1722

Printed at Awal Press, Kingdom of Bahrain.

WORK

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

PLAY

The multi-award winning Arabian magazine

The multi-award winning Arabian magazine

WORK

PLAY

for PLAY see page 35

The Arabian Review

Issue 121

for WORK see page 10

The Arabian Review

Issue 121

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

Also inside:

Also inside:

Fine Dining - V-Day Dinner Ideas Car Review - 2015 Volvo XC60 Motors - Luxury Jets

Art - Mayasa Al Sowaidi Interview - Jamal Fakhro

Protects Buyers and Tenants?

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GIFT IDEAS FOR HIM AND HER

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Complimentary Copy

BAHRAIN’S NEW REAL ESTATE LAW

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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.

Registered as Gulf Financial Insider 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.

Inbox

Send your views to info@Gulf-Insider.com The multi-award winning Arabian magazine

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Issue 120

Review

UAE Property Market Affairs

Oil Prices - Domino Effect Bahrain Noor El Ain

Entrepreneurship Awards

The Swimming Challenge

FIT BAHRAIN I’ve been following the recent developments in Bahrain’s sporting arena, and I like what I see.

Events such as Challenge Bahrain and Khalid bin Hamad Swimming Challenge are just what this tiny island needs. International sporting events – when done right – almost guarantee exposure, tourism and infrastructure boost, plus, of course, the economic benefits for the local people. Not to mention promoting sports and much needed healthy lifestyle to the locals.

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A WORD OF WARNING TO INVESTORS The story featured in your article, “International Buyers Conned in UAE,” may seem really confusing for those who don’t know much about the Gulf. How is it even possible to con 700 international buyers out of USD 80 million and walk free?! Well, if you choose to operate your “scheme” in Dubai, you can! The legal processes here need a lot of work before they can be deemed practical. Until then, steer clear from any investments that involve more money than you’re willing to part with.

It’s really great to have the Noor El Ain Festival in Bahrain. We certainly needed such initiative here, and I hope it will grow even bigger over the years.

Thank you for featuring my hometown in your travel section! Moscow is truly worth visiting, and I’m not just saying it because I call this beautiful city home.

Russian culture, architecture, cuisine, and leisure attractions make it a great holiday destination for all sorts of tourists.

I personally recommend it!

Jamal

Yuri

Marcel

Issue 118

Special Feature:

A Guide to Bahrain’s Property Ladder Watch Review

Omega Seamaster Planet Ocean Car Review

Rolls Royce Ghost ll

A CHALLENGE FOR BAHRAIN

Exclusive interview with HH Shaikh Nasser bin Hamad Al Khalifa Bahrain BD2

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PERSONAL RECOMMENDATION

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News

GULF ROUNDUP NEWS AROUND THE GCC AND BEYOND

BUSINESS & AFFAIRS

Zain Partners MIT Enterprise Forum Arab Startup Competition Zain Group announced its strategic partnership of the MIT Enterprise Forum Arab Startup Competition, joining founding partner Abdul Latif Jameel Community Initiatives in the eighth edition of the competition. The application deadline for the competition is February 15, 2015, and the winners’ ceremony will be held in Kuwait on April 20, 2015.

Widely known as MIT, the Massachusetts Institute of Technology is recognised for being one of the leading universities in the world, earning a reputation as a key player in the advancement of the digital age. Founded in 2005, the MIT Enterprise Forum (MITEF) of the Pan Arab Region is one of the 28 worldwide chapters of the MITEF Global, an avid promoter of innovation worldwide, engaging aspiring entrepreneurs in mentorship and networking.

The forthcoming eighth edition of the competition will see over 5,000 individuals and teams, from 21 Arab countries apply to participate within one of three different tracks: Ideas, Startups, as well as a new track initiated this year, Social Entrepreneurship, which focuses on adapting the idea of innovation worldwide.

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Gulf Insider February 2015

Bahrain: Batelco Invests Millions in New Mobile Networks Batelco is currently rolling out its fibre network across Bahrain to deliver super-fast fixed broadband for all areas, in addition to upgrading its entire network system, including its 4G network, to provide faster mobile broadband connections with superior quality. The upgrades will enhance the mobile coverage throughout the whole kingdom. The major networks upgrade, in collaboration with Ericsson, is Batelco A/Bahrain CEO already in process.

Muna Al Hashemi Batelco A/Bahrain CEO Muna Al Hashemi said, “This significant transformation will allow us to offer customers a greater experience and meet their ever-increasing demands. As a customer-centric organisation, we listen to feedback from our customers and strive daily to ensure they are happy with our services. Batelco apologises for any disruption to services while this crucial upgrade work is ongoing.”

Bahrain: Bank Alkhair Appoints New CEO Bank Alkhair announced the appointment of Mr Ayman Sejiny as group chief executive officer. He will be responsible for overseeing the day-to-day operations of the bank and for developing and executing the group’s strategy. Prior to his appointment, Mr Sejiny was the managing director and chief executive officer of Barclays Saudi Arabia.

He was also one of Bank Alkhair’s founding members and previously held the position of board member Mr Ayman Sejiny and chief executive officer of Alkhair Capital Saudi Arabia (formerly Unicorn Capital Saudi Arabia) and board member of Unicorn Bahrain. He has served in a number of leading regional and international organisations, including Citibank and ABN AMRO affiliate in Saudi Arabia (Saudi American Bank – SAMBA and Saudi Hollandi Bank).

News

King Abdullah Passes Away Custodian of the Two Holy Mosques King Abdullah died on January 23, following a short illness. Crown Prince Salman has been named the new king with Prince Muqrin crown prince, according to a Royal Court statement.

The smooth succession indicates stability in Saudi Arabia, according to observers.

Since the death in 1952 of King Abdul Aziz, the founder of Saudi Arabia, the throne has systematically passed down to his sons.

King Salman, credited with transforming Riyadh during his half-century as governor, has a reputation for austerity, hard work and discipline. Born on December 31, 1935, King Salman is the 25th son of King Abdul Aziz. He was appointed governor of Riyadh province at the age of 20. He was appointed minister of defence in 2011. – ARAB NEWS

European Airlines ‘Cannot Keep Up’ with Slick Gulf Airlines, Says Qatar Airways CEO Speaking at a press conference celebrating the arrival of the first of 80 Airbus A350s to join Qatar Airways fast growing fleet, Qatar Airways CEO Akbar al-Baker publicly announced that European airlines ‘cannot keep up’ with the competition offered by Gulf carriers, adding that Qatar Airways, Emirates, and Etihad are now the fastest-growing carriers in the world.

In November, Mr al-Baker accused Europe’s national airlines of being ‘inefficient’ and surviving only because they were protected by European Union policies. His latest comments come as Qatar Airways revealed its plan to develop a system so that all black box recordings can be streamed to the ground while in flight. This new technology will mean that in the event of an accident, ground staff would already have a recording of what took place in the cockpit.

Qatar Airways will be the only airline in the near future using the new A350, which is 25% more fuel efficient, has wider cabins, and is quieter than any other aircraft of its size.

Tamkeen Conducts Orientation Sessions in Bahrain Tamkeen recently conducted a series of orientation sessions in communities around Bahrain, organised as part of Tamkeen’s community outreach efforts which seek to enhance awareness of the various support programmes and services to develop enterprises and Bahrainis in the private sector. Sessions were held in the Islamic Society in Arad, Al-Shakhoura Youth Centre, Mohammad Al-Jowder Majlis in Muharraq, and Hamad Town Charity. The topics discussed focused on the revamped Enterprise Support programme, which was re-launched last September with a host of new convenient features. These improvements include a dedicated online portal for submitting and tracking applications as well as a re-designed assessment model to ensure each enterprise receives customised support solutions to grow and develop.

KHCB CEO Khalil Al Meer

Bahrain’s Khaleeji Commercial Bank Introduces Al Waffer Account 2015 Khaleeji Commercial Bank (KHCB) introduced its new Al Waffer scheme for 2015, in line with its commitment to offering Shari’a compliant products and services to its customers in Bahrain. KHCB raised the bar for itself even further by offering to reward one lucky winner with a 759 m2 luxury villa in Oryx Hills, the residential component of the Al Areen development, a new BMW car, and USD 25,000 in cash – to be drawn in January 2016. The scheme also involves a total of 480 cash prizes and six BMW cars. The 40 monthly cash prizes include a chance for one winner to win a Grand Prize of USD 50,000 or a BMW car each month, in addition to other valuable cash prizes.

Gulf Insider February 2015

9

News

International Self Development Conference to Be Held in Bahrain

Bahrain’s Mumtalakat Said to Sign USD 500 Million Loan Deal

The Bahrain Meditation Centre for SelfDevelopment is organising its third International Self Development Conference titled, ‘The Road to Peace’, which will be held at the Bahrain Chamber of Commerce and Industry from February 10 to 12, under the patronage of HE Sheikh Khalid Bin Abdullah Al Khalifa, Deputy Prime Minister.

Registration fee for the event is BD 60 (USD160); fulltime university students are eligible for a 50 per cent discount. For more information, call +973 1771 2545 or +973 3965 2158.

Bahraini sovereign fund Mumtalakat has signed a USD 500 million five-year loan with a group of banks, sources aware of the matter said, with the cash to be used for general business purposes and to refinance existing debt.

The loan is being provided by the Bank of Tokyo-Mitsubishi, BNP Paribas, Deutsche Bank and Standard Chartered, as well as local institutions Arab Banking Corp and National Bank of Bahrain.

Signed just before the end of 2014, the loan is structured as a revolving credit facility.

Mumtalakat didn’t immediately respond to a request for comment. – ARABIAN BUSINESS

Oman Said to Mull Privatising Part of State Oil Refiner Oman’s government may sell off part of oil refiner Oman Oil Refineries and Petroleum Industries Co (ORPIC) as it revives a privatisation programme in response to weak oil prices, oil minister Mohammad bin Hamad Al Rumhy was quoted as saying.

In its 2015 budget announcement early last month, the finance ministry projected a record deficit and said privatisations would be carried out in the next three years to raise money. It did not elaborate.

Rumhy was quoted by Oman’s Azzamn newspaper as saying ORPIC was one likely privatisation target.

“We have the initial approval from the ministry of finance. After the expansion plan that concludes in 2016, we might offer 15 to 20 per cent of the company to the public.”

Rumhy was also quoted as saying that Oman Oil Co might sell shares in Abraj Energy Services.

Comment could not immediately be obtained from Oman Oil or the oil ministry. – ARABIAN BUSINESS

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Gulf Insider February 2015

GCC States among World’s Worst for ‘Dirty Money’ Flows Both the UAE and Saudi Arabia have ranked among the top ten countries with the highest illicit financial outflows between 2001 and 2010, with Qatar not far behind at number 15, a new report has found.

Some USD 400 billion worth of wealth from crime, corruption, tax evasion and other illicit activities flowed out of GCC nations over a decade, the Illicit Financial Flows from Developing Countries: 2001-2010 states. Conducted by US-based Global Financial Integrity, the study does not include illicit financial flows derived from drug trafficking, human smuggling, and other primarily cash-based criminal activities.

China topped the rankings, losing an average of USD 274 billion a year to dirty money transactions. Saudi Arabia ranked fourth, with an annual average of USD 21 billion lost; the UAE tenth, at USD 10.7 billion; and Qatar 15th, at USD 5.6 billion.

“Regardless of the methodology, it’s clear: developing economies are haemorrhaging more and more money at a time when rich and poor nations alike are struggling to spur economic growth,” said GFI Director Raymond Baker. – DOHA NEWS

Business

BARRIERS TO BOARD EFFECTIVENESS REVEALED IN GCC SURVEY

T

he GCC Board Directors Institute (BDI) last month announced the results of its fourth biennial Gulf Board Effectiveness Survey. The survey gauges the effectiveness of boards and directors’ performance and provides insight into changes and improvements made in corporate governance practices in the GCC. The 40 question survey, which polled board directors from across the six GCC countries, again found that despite positive progress, a strong majority still believe that GCC boards are not as effective as they should be.

“Corporate governance and board efficiency have come a long way in the Gulf but again, this year, BDI’s survey reveals the need for ongoing development,” said BDI Chairman, Mr. Mutlaq Hamad Al-Morished.

Top Three Barriers to Board Effectiveness The first most significant barrier to effectiveness as cited by 71% of respondents were issues related to Board Composition & Directors’ Capabilities, as was also the case in the 2009, 2011 and 2013 surveys. The major factors identified as areas for needed improvement were directors’ skills relating to corporate governance and compliance (69%) performance and talent management (48% each) and risk

12

Gulf Insider February 2015

management (44%).

In terms of composition, the need for greater diversity was a strong theme that emerged among a majority of respondents. 65% believed boards would benefit from a greater number of independent directors despite 38% noting that no independents were presently on their boards. The need for more international board members was also advocated, with 67% of respondents believing the presence of directors from outside the GCC would bring more formality to the table and enhance the level of discussion.

The survey also revealed the need for greater gender diversity on boards today.

While women still comprised on average less than 1% of board seats, respondents generally found the presence of women enhanced interactions in meetings, discipline in discussion, effective probing and conflict management.

The second most commonly cited barrier to effectiveness was the absence of a formal Board evaluation process (47%). According to 62% respondents, GCC boards still have no formal review process in place. Although there was a marked improvement from 2013 when only 16% confirmed a review performance to be in place, this year’s 38% still falls considerably short of global best practices.

The third most cited hurdle to board effectiveness by 44% of respondents was the impact of ineffective board dynamics. This included a perceived decrease in the level of preparation and participation in meetings.

Recommendations The report provides six priority improvement areas and recommendations for boards in the region: Make training for new and incumbent board members mandatory;  Replace ineffective board members and rotate board members more frequently;  Appoint more international and independent board members;  Strengthen the board secretary role (42% of respondents confirmed there was currently no corporate secretary despite the critical role they play in ensuring board effectiveness);  Dedicate more time in the board agenda to talent management and risk management;  Conduct evaluations of a board’s performance annually. 

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Business

OUT IN THE OPEN UNRAVELLING CORPORATE SECRETS Gulf Insider asks Jamal Fakhro, KPMG managing partner, why corporate transparency wins in business.

Y

ou have joined the Pearl Initiative as board member two years ago to help promote the principles of transparency and accountability in the region. How does the initiative help businesses?

Following the financial crash in 2008 a lot of trust has been lost in financial institutions.

These days, people won’t tolerate those who don’t share information – I’m referring especially to lenders and shareholders who have become far more sophisticated. This is where we come in; to educate people – whether they be in universities, businesses, regulatory bodies, or NGOs.

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Gulf Insider February 2015

Greater transparency enables society as a whole to benefit. We’ve been working to achieve this through specialised conferences held across the GCC region.

to function in a healthy way. For that, businesses need to be able to modify their default positions of information provision.

How can a company realistically be transparent when it has competition to deal with?

Of course, not all information is suitable for sharing on a public forum – some of it has to remain confidential for the business’ sake. So, the rule of thumb that we recommend to all companies is to first decide which information is absolutely confidential and which is not – and share the latter. I believe transparency is a must for a society

Where do you see room for improvement in Bahrain?

Today, we live in the age of mania for adding regulations – perhaps too many.

This has created a tick-box culture; as long as you “tick” all the boxes, you’re covered. This way, executives can shrug off moral responsibility for their business actions. Overregulation comes at the expense of common sense and is never good. Ever more regulations are not the answer. Too many regulations have

Business

the years, the business environment has become more complex, and in fact, many major businesses collapsed because of lack of transparency culture.

Are Bahraini family businesses open to these changes?

Yes, they are. They are keen on introducing any change that will potentially benefit them.

What sets the family-owned enterprises apart from other business models?

Typically the directors are major shareholders. Family businesses don’t usually segregate ownership from governance. They will likely select their future leaders favouring family ties over pure merit. That’s why the family boards will carefully decide on the type of

It’s very important that people start applying good corporate governance because it’s the right thing to do, and not just because the law mandates it. proved to be ill considered and do more damage than good, yet they remain on statute books, typically to be built upon with ever more regulations.

But I’ve seen some improvement. The Ministry of Commerce and Industry, in collaboration with the Central Bank of Bahrain, issued a directive on corporate governance a few years back. Big change cannot be done in one go. It’s a gradual process. With that in mind, the ministries did a wise job by initially not enforcing the directive too strictly, allowing time for companies to adjust to the new regime. Now that companies have had that time to comply or explain, the directive is starting to be far more

strictly observed. I wish it was easier and faster, but in the real world, it takes time. We shouldn’t get disheartened as long as there is constant progress. The Government has done its part, now it’s the turn of business.

It’s very important that people start applying good corporate governance because it’s the right thing to do, and not just because the law mandates it. I’m pleased to see this is slowly happening.

How have the patterns of corporate governance changed over the decades?

They’ve changed a lot. Fifty years ago we had far fewer public companies. Over

education and other aspects of the lives of their heirs to ensure they become the best possible leaders, able to carry out strong governance.

What will be the biggest challenges for the private sector in Bahrain over the next few years?

A decline in oil prices will directly affect government spending, which will then effect the business world as most of the major contracts are offered by the Government. It’s hard to predict what exactly is going to happen. I expect that the private sector will face increased fees and taxes, while the Government will need to cut down on spending.

Gulf Insider February 2015

15

Business

HONESTLY, CAN WE GET BY

WITHOUT EXPATS?

their circumstances are an affront to the human rights defined in our religion.

The list can go on and on, but the point I am trying to get across is this: Most of these tasks are being undertaken by expatriate workers because Saudis have shown no inclination to do them. These workers are not taking jobs away from Saudis, but instead are performing a service essential to all of us and in most cases they are doing them well.

Let us not delude ourselves into believing that Saudis today would readily fill these posts and professions.

Our booming construction industry has necessitated the need for large numbers of semiskilled expatriate workers.

A Saudi perspective, by Tariq A. Al-Maeena

T

here have b e e n columns written in the daily press warning against the threat of guest workers in our society. After reading enough of these generalized warnings against the unskilled and semi-skilled expatriate workforce in this country, I have to ask bluntly: Can we really get by without them and exactly who would step in to replace them?

Let us list some of the activities these workers are engaged in. To begin with, our municipal workers are exclusively comprised of large numbers of expatriate workers industriously engaged in keeping our roads and cities clean, and our trash carted away. As our cities strain from a growing population, there is an increase in the amount of litter and garbage that has to be dealt with, and it is being judiciously done by guest workers.

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Gulf Insider February 2015

Our booming construction industry has necessitated the need for large numbers of semi-skilled expatriate workers.

Many are perched precariously high on scaffolds around high rises, daily placing their lives at risk. For them, there is no safety net of comprehensive medical insurance, and working conditions often hover above 40 C with a high humidity factor.

Our streets and roads are constantly being dug up to construct a sewage network. Guess who is primarily involved in the actual digging and setting of the massive pipes for these projects?

It certainly isn’t any Saudi that I know of.

The waste from our septic tanks is flushed out and carted off by tankers operated primarily by workers from African countries. Our factories and other industries employ a large number of migrant workers, often resigned to pitiful living and working conditions and very low wages, but yet the job gets done without complaint. In some cases,

Granted, Saudis are beginning to look at blue-collar jobs in a different light, but there simply isn’t a sizable number of Saudis queuing up for such professions held by expatriate workers.

Let us appreciate their contributions for a change. Many leave homes and families behind to eke out a meager existence and save a little every month to send home. Many are subjected to deplorable living conditions, their rights violated in every form and yet they remain faithful to the task uninterrupted and without protest.

They stick to themselves, are rarely intrusive and more often abused. The hardworking expats are not a threat to society. The real threat lies in the lazy and sluggish attitude exhibited by some of our Saudi workforce whose expectations of salary and benefits far exceed their abilities.

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

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Business

GCC HELPS

DRIVE EMERGING MARKETS Saudi Arabia climbs to the number two spot after only China.

D

ynamism in GCC countries and the large, next-tier economies of Indonesia, Nigeria, Bangladesh, Mexico and Pakistan is offsetting mixed performance in the BRICS countries that powered emerging markets growth in recent years.

The more balanced picture for growth is reflected in the 2015 Agility Emerging Markets Logistics Index, an annual data-driven ranking of 45 emerging economies accompanied by a separate survey of nearly 1,000 global logistics and supply chain executives.

The Index, now in its sixth year, ranks emerging markets based on their size, business conditions, infrastructure and other factors that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution companies.

Large BRICS nations Brazil, Russia, India, China and South Africa have accounted for much of the growth and investment in emerging markets and have dominated the Index. Saudi Arabia climbed to No. 2 in the 2015 Index, ranking behind only China, which has 47 times the population and 12.5 times the economic output.

Gulf states UAE, Qatar and Oman, ranked as having the best “market compatibility” – the most ideal business conditions – among the 45 countries in the Index. They were followed by Uruguay, Saudi Arabia and Morocco.

UAE, Malaysia, China, Oman, Saudi Arabia and Chile led in “connectivity,” indicating they have the best 18

Gulf Insider February 2015

infrastructure and transport links among emerging economies.

“Infrastructure investment and structural reforms that improve the climate for businesses have positioned Saudi Arabia, the UAE, Qatar and Oman to weather the downturn in energy prices,” said Elias Monem, CEO Middle East and Africa for Agility Global Integrated Logistics. “They continue to pursue smart policies that will help them diversify and make them more inviting to the logistics industry as consumer markets and logistics hubs providing high-value supply chain services.”

Bahrain posted strong growth but continues to deal with the aftermath of sectarian tension.

Next-tier economies Indonesia (No. 4 in the Index), Nigeria (27), Bangladesh (28) and Pakistan (25) – all with populations topping 100 million – climbed in the Index rankings. The other large non-BRICS market – Mexico -- held steady at No. 9.

Elsewhere in the Gulf, Kuwait slipped three spots to No. 21 in the Index, and Bahrain fell two to No. 24. To close the gap with its Gulf neighbors, Kuwait needs to accelerate infrastructure investment

4.57%.

For 2015, the International Monetary Fund forecasts average growth for the 45 countries featured in the Index at 4.57%.

Business

and economic reform. Bahrain posted strong growth in the first half of 2014 but continues to deal with the aftermath of sectarian tension.

The picture was mixed for non-Gulf countries of the Middle East. Jordan slipped five spots to 29 in the Index despite strong scores for its business conditions. Jordan has been affected by fighting in neighboring Syria and Iraq, its largest trading partner. Lebanon, also affected by fighting in Syria, fell two spots to No. 42. Turkey, which has a much larger and more diversified economy, was more resilient, holding steady at No. 10 despite fighting on its southern border, concerns about the falling lira and internal political tension.

In North Africa, relatively stable Algeria leaped three spots to No. 34, but Algeria has yet to feel the full brunt of falling oil prices, which have added urgency to calls for economic diversification. Egypt’s slide continued. It dropped from No. 28 to No. 32 despite signs that the current government has halted the decline that began in 2011. Even so, many analysts forecast a strong recovery for Egypt in 2015, and the relative stability brought about by the government has prompted a reconsideration of the country’s

prospects among logistics and supply chain executives. It climbed four spots in the survey to No. 20 among markets thought to be emerging as major logistics markets.

UAE, Qatar and Oman, ranked as having the best “market compatibility” – the most ideal business conditions – among the 45 countries in the Index.

Elsewhere, Tunisia (No. 35) shows signs of stabilizing in the wake of political upheaval but is feeling the spillover of ongoing violence in neighboring Libya.

Libya, torn by extremism and militia

fighting, experienced the biggest slide of any country in the Index, falling seven spots to No. 40.

“A year ago, there was talk of an emerging markets meltdown and of a new ‘fragile five’ based concerns about weakness in South Africa, Brazil, India, Turkey and Indonesia,” said Essa Al-Saleh, President and CEO of Agility Global Integrated Logistics. “Emerging markets as a group turned out to be far more resilient – even vibrant – than expected despite continued sluggishness in the global economy.”

Al-Saleh said a number of developing countries have invested in infrastructure and taken steps to address longstanding problems such as labor and tax rules, investor protections, contract law, property rights, capital restrictions, trade and land-use regulations. He said risks to emerging markets growth in 2015 will come from falling commodity prices, the cooling Chinese economy, U.S. monetary tightening and Russia’s economic woes.

For 2015, the International Monetary Fund forecasts average growth for the 45 countries featured in the Index at 4.57%.

Gulf Insider February 2015

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Business

ADVERTORIAL

“InterContinental Hotels and Resorts are dedicated to providing luxury experiences that meet the needs of guests, without unnecessary excess of opulence. We are known for connecting

Jan Ifcic

INTERCONTINENTAL REGENCY BAHRAIN

WELCOMES NEW GENERAL MANAGER

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seasoned luxury hotel industry veteran, Jan Ifcic has recently stepped in as the general manager of InterContinental Regency Bahrain and the area general manager of IHG Hotels in Bahrain.

Leadership Know-Hows Ifcic’s career in the hospitality industry began in 1992 in Slovakia – his homeland – where he joined IHG. He utilised the following 22 years climbing the career ladder in various IHG properties across Europe and the Middle East, where he served many top managerial positions. As part of his assignments, he had worked and lived in London, Abu Dhabi, Kuwait, Beirut, Egypt, and – most recently – Jordan, where he assumed a role of general manager at InterContinental Jordan.

A graduate of Thames Valley University 20

Gulf Insider February 2015

in London, Ifcic has grown to become an expert when it comes to luxury hotel segment and cross cultural leadership.

He received the IHG President EMEA Special Award for exceptional leadership in 2008, and – under his direction – the iconic InterContinental Jordan was recognised as one of the top performers of the year 2014 IHG AMEA region.

What’s more, this accomplishment followed a successful multi-million renovation programme completion, carried out under Ifcic’s tenure.

Quiet Luxury Asked about his views on the InterContinental brand, Ifcic said, “It is trusted around the world for its superior, understated service and the quiet luxury its guests have come to know and appreciate. It is my pleasure to continue that fine tradition in the Kingdom of Bahrain.

“InterContinental brand is trusted for the quiet luxury its guests have come to know and appreciate.” our well-travelled guests to what’s special in a destination.”

Ifcic, with his attention to customer service detail, appears to have a clear vision on enhancing the guest experience beyond their expectations and delivering results through thorough understanding of how to drive the hotel to greater heights. What are his immediate plans in his new role? “I look forward to build on the inspirational past that is associated with the InterContinental Regency Bahrain and work with our immensely talented team towards further excellence,” he revealed.

Read an exclusive interview with Jan Ifcic in our next month’s issue!

InterContinental hotels and resorts focus on superior, understated service and top quality facilities, but their most basic concept revolves around a showing a genuine interest in their guests.

There are 178 InterContinental properties around the world and 53 hotels in the development pipeline, which will open over the next five years.

For more details, call InterContinental Regency Bahrain on +973 1722 7777.

Property Finance

ADVERTORIAL

ROLLING OUT THE RED CARPET

Arab Bank launches their ‘all-inclusive’ Arabi Premium programme.

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rab Bank’s recently launched Arabi Premium programme has been designed with young professionals, entrepreneurs, and executives in mind, as it offers customers unique banking experience which will save them both time and effort.

WHAT IT IS ABOUT To begin with, a customer will be assisted in a designated service area at the branch by a dedicated relationship officer, who will provide the personalised services. The programme also offers access to a suite of loan products with preferential interest rates and a wide array of bank accounts with added benefits. In addition, customers will be entitled to the Arabi Premium ATM card and Black Visa credit card.

“The Arabi Premium programme is one of the most comprehensive banking 22

Gulf Insider February 2015

“Giving our customers a personalised experience and added privileges throughout our branches in the kingdom,” packages available in Bahrain,” Mr Odeh Al Masri, head of consumer banking in Bahrain, said. “It features a full spectrum of financial solutions that cater to a large and important segment of the community.

“It is multidimensional, giving our customers a personalised experience and added privileges throughout our

branches in the kingdom,” he added.

Another important point to mention is that Arabi Premium members can take advantage of the bank’s extensive regional network and access their accounts anywhere the bank is present.

“This is a show of commitment from Arab Bank – to be there for its customers whenever and wherever they need us,” Mr Al Masri stated.

In addition to these added privileges, members will have access to all of the bank’s channels, including branches, ATMs, Internet banking, and telephone banking services.

For more information, call +973 1754 3000.

Property

QATAR’S NEW $1.5 BILLION

FLOATING HOTEL

T

he Silver Pearl Hotel, designed by New York-based firm M. Castedo Architects, will have 1000+ rooms and an expo centre and is due to be ready before the 2022 FIFA World Cup. The unusual property features two 30-storey semi-circle towers and will be built and operated by Qatari developer Katara Hospitality.

The developers say that between the structures will be a climate-controlled atrium over gardens with sea views and include restaurants and a high-end shopping mall. The glass exterior will be illuminated at night with LEDs to ‘create an illusion of a shimmering pearl glowing in the sea.

The hotel will be accessed by a fourlane elevated causeway. Private yachts and helicopters will also have easy access to the hotel.

The designer said the complex will be positioned above the seabed to have as little impact as possible on the marine environment.

‘A major environmental consultant with extensive marine experience in

Image: m.castedo architects

the area will be responsible for making sure that lessons learned on existing projects such as The Palm and The World in nearby Dubai are incorporated in the development of this particular site,’ the statement said.

Qatar is aiming to increase its hotel capacity from about 15,000 to 95,000 rooms. A recent report by Samba Financial Group fears that following the

tournament, the country’s tourism intake will struggle to support so many hotel facilities. ‘Although the recent growth of the tourism industry in Qatar has been robust, it will be difficult for the country to achieve the level of visitor growth which will garner enough demand to support a 400 per cent expansion in the number of hotel rooms in eight years,’ the report said.

Gulf Insider February 2015

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Property

BAHRAIN’S NEW REAL ESTATE LAW PROTECTS BUYERS AND TENANTS?

T

he government of Bahrain is this month expected to introduce new obligatory tenancy registration procedures, according to leading international real estate consultants, Cluttons.

While the exact procedure and process by which the registration of tenancy agreements will take place is yet to be revealed, the move will help to further bolster Bahrain’s progressive regulatory framework, strengthening the Kingdom’s business friendly appeal that investors find attractive.

Faisal Durrani, Cluttons’ international research and business development manager commented: “Any move to better regulate the market will be well received by the investment community.

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Gulf Insider February 2015

There are of course a number of lessons to be learned from around the region, which we hope the authorities will consider before finalising the new regulations.

“The most critical component of the regulation should centre on what happens at the time of renewal. The current draft proposal calls for an uplift after a period of two years; 5% for the residential market and 7% for the commercial market. Landlords are expected to be restricted on imposing any rent increases on the agreed rate for two years from the start date of the tenancy, or the date of the last increase.

For a market still finding its feet after being impacted by an unprecedented period of national tensions, existing

landlords will have to plan further ahead and will be restricted by the rent caps being proposed. This will inevitably impact bottom lines should the market outperform the proposed uplifts. At the same time however, it is exceptionally positive to see the authorities move to put landlords’ obligations and tenants’ rights into clearly defined laws.”

According to Cluttons, there is no perfect one-size-fits-all solution to this conundrum. In mature markets such as London, rental uplifts are often tied to inflation rates, which allows tenants to better plan for rent increases, while in markets such as Dubai, rent increases are linked directly to a rent index created

by Dubai’s Real Estate Regulatory Authority. For a market like Bahrain, a

Property

similar rent index would likely be the most viable solution.

Deborah Sellers, head of residential property management at Cluttons Bahrain added: “The move is certainly very positive, however there needs to be greater clarity on the process by which tenancy agreements will be registered.

Furthermore, any regulations need to be air tight, with no loop holes for landlords to break lease agreements and implement rent increases in the middle of tenancies. The residential market has only recently begun to demonstrate an increased amount of stability as economic growth across Bahrain picks up gradually. And any regulation needs to be carefully implemented so as not to curtail this. With the new proposals however, tenants look like they will end up being the beneficiaries, rather than landlords.�

The other key component of the legislation is expected to be centered

Tenants look like they will end up being the beneficiaries, rather than landlords on property development. Not only will developers be required to obtain a license prior to seeking planning approval, but a new set of regulations around off plan property sales is also anticipated, with all off plan sales expected to be formally registered.

Developers will also be required to open an escrow account which will be used to hold any proceeds from purchasers and any finance obtained.

Cluttons expects that this will help to address the issue of projects stalling midway through construction and will inject confidence into the market, for buyers eyeing investment opportunities; a move that will no doubt strengthen the Kingdom’s investment appeal across all property segments.

Gulf Insider February 2015

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Property

ABU DHABI

MARKET GROWING

W

hilst still reliant on hydrocarbon revenues, Abu Dhabi’s economy has benefitted from the strong performance of its non-oil segment, with the property, finance and manufacturing sectors all seeing solid growth according to a recent report from Statistics Centre Abu Dhabi (SCAD). In 2013, the nonoil sectors contribution to GDP grew by around 7.4% surpassing the 5.9% growth observed during 2012. In real terms, the total contribution of non-oil sectors reached 48.6% as compared with 47.6% the previous year.

During 2013, the manufactured goods sector recorded annual growth of close to 10%. This growth is becoming increasingly evident within Abu Dhabi’s major industrial zones, with more than 50 investors with on-going construction of production facilities for various light and heavy industrial companies in KIZAD alone.

Another sector which has seen a major upturn is tourism and hospitality.

A recent report from the Tourism and Culture Authority (TCA) has indicated

48.6%

the total contribution of non-

oil sectors reached

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Gulf Insider February 2015

Latest CBRE report reveals latest info on commercial and residential rents, tourism, inflation, and new business registrations.

that over 1.7 million guests visited the capital during H1 2014, constituting 28% growth over the same period last year. The significant growth in visitor numbers means the emirate looks set to meet or surpass its 3.2 million visitor target during 2014. The sector has been buoyed by continued expansion of the emirate’s airline services and a host of new passenger routes.

Although a number of new hotel properties started operations during H1 2014, average occupancy rates also saw some growth, rising by around 8% year on year. This also transcended into higher revenues for the emirate’s hotels. India once again topped the visitors’ rankings with nearly 108,000 guests, a 35% rise year on year.

With a host of upcoming sporting events, including the Formula 1 Etihad Airways Abu Dhabi Grand Prix and the Volvo Ocean Race, we expect to see a solid final quarter for the hospitality industry.

Against the backdrop of a buoyant

Property

economy, Abu Dhabi’s inflation increased by nearly 3.0% during the first eight months. The “housing, water, gas and other fuels” group contributed the largest increase in the CPI, representing around 40% of the overall observed price increment. This was followed by the ‘Furnishings, household equipment and routine household maintenance“and the “Food and beverages” group with 16% and 14% contribution respectively during this period. Overall, stability in housing rentals is seen to be crucial in ensuring that inflation levels are contained at an acceptable level.

Residential Market After a very strong H1 2014 whereby rentals grew by an average of 12%, residential rents in the capital have shown signs of stabilisation. During Q3 average rents increased by just 2%, although the market was fragmented with some properties seeing rates unchanged.

Abu Dhabi has seen strong demand for housing requirements emanating from major corporate clients. Bulk deals arising from the medical, educational, and hospitality sectors to house

locations more livable and importantly attractive to investors.

Outlook Whilst the third quarter produced a relatively subdued performance, improvements in both sale and lease rates are likely to continue, albeit at a steadier pace than was evident during the first half of the year. As has been the trend, the market will remain fragmented with well-located and well positioned properties able to outperform the wider market. On the flip-side, we expect to

Over the past six quarters there has been a revival in the capital’s residential sales market with average prices for key investment locations growing by close to 22%.

Office Market During the third quarter, Abu Dhabi’s office market remained flat with minimal movement in both the prime or secondary rental rates. Average secondary market rents were recorded unchanged at around AED1,150/m2/ annum whilst premium office offerings averaged rents of AED1,850/m2/annum exclusive of service charges.

Figures from the Abu Dhabi Chamber of Commerce and Industry have revealed that the number of newly registered businesses grew by close to 14% during 2013 compared to the previous year. The total number of new business licenses reached 9,000, as compared with just 6,900 during the preceding period.

employees remains a key source of overall residential demand. Over the past six quarters there has been a revival in the capital’s residential sales market with average prices for key investment locations growing by close to 22%.

The creation of more integrated mixed-use developments and the continued expansion and improvement of infrastructure facilities reflects the Government’s vision to make Abu Dhabi a more attractive destination for international guests and resident workers alike. However, whilst there has been significant progress in developing residential elements, many masterplan developments are still lacking planned cultural, retail and community facilities, elements that will ultimately make these

see rental rates drop further for inferior real estate products as competition continues to rise.

However, despite the positive outlook significant challenges remain for the market as a whole, particularly in regards to solidifying the structure of real estate regulations such as ‘Escrow’, ‘Strata’ and the anticipated real estate ‘Price Index’.

With continued strong support from the Government, the property market is geared towards achieving greater maturity in the coming years.

Information provided by CBRE. For full report contact infodubai@cbre.com

Gulf Insider February 2015

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Property

DUBAI’S COMMERCIAL MARKET OUTLOOK

Rising demand for office and industrial space driving up rents across Dubai.

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shortage of prime office space in Dubai, which is being underpinned by robust demand, has translated into strong upward pressure on rents across the city, and a rapidly diminishing supply of Grade A space in more centrally located submarkets and freezones, according to the latest research from international real estate consultancy, Cluttons.

Cluttons’ Dubai Winter 2014 Commercial Market Outlook report, shows that during the third quarter of 2014, rents for prime office space

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Gulf Insider February 2015

reached AED250 psf, which represents a near 14% rise on Q1 and a 25% increase on the same time last year. In the secondary market, strong business activity is fuelling the demand for high quality space, with rents rising by 44% over the past 12 months to reach an average of AED130 psf.

According to Steve Morgan, Chief Executive of Cluttons, Middle East: “Following the usual summer slowdown, the market has regained its strength, with strong demand persisting for welllocated space. Across the business

sectors, the office market remains very active in all segments. We have been recording a steady rise in take up by both existing and new occupiers, with the banking and financial services, real estate and aviation sectors being amongst the most notable.”

The report shows that the most expensive offices remain at the DIFC, Downtown Dubai and on Sheikh Zayed Road, where Grade A space lets for between AED 220 psf and AED 280 psf. There are however exceptions to this range, with space at Emirates Towers for example letting for AED 300

29%

Compared to this time last year, rents are up by 29%

Property

psf, cementing its position as the city’s super prime scheme. Together, these three areas form the city’s core business district, where supply is still limited.

Morgan continued: “It is our view that the Grade A space being delivered at Central Park is anticipated to go some way towards plugging the supply gap for top tier space at the DIFC, where we continue to record a strong level of occupier demand. At the same time however, we expect this new scheme to contribute to further stabilisation in office rents at the top end of the DIFC office market.”

The report also highlights that with

either unavailable or in very short supply, occupiers are now beginning to consider more secondary options.

Cluttons’ international research and business development manager, Faisal Durrani commented: “Sustained demand is expected to come from the fast expanding SME sector as it positions itself as one of the new core pillars of Dubai’s economy. The expansion of the sector is driving requirements for more secondary and tertiary space, and to an extent the market is already benefitting from this. Upper limit rents in Deira (20%) and Barsha (18%) for instance, have shown the most significant rises in

options elsewhere, with DIP emerging as a particular favourite. Further afield, as expected we are witnessing occupiers mobilising to locate in close proximity to Dubai World Central, Al Maktoum Airport and the World Expo 2020 site, as the area grows towards becoming an integrated global logistics hub.

“At Dubai Industrial City for example, average rents have seen a 45% rise over the past 12 months, while at DWC itself, annual land rental values currently hover between AED 2.80 psf and AED 4.20 psf, highlighting the growing importance of this increasingly significant corner of Dubai.”

the city this year, topping out at AED 120 psf and AED 100 psf, respectively.”

Elsewhere in the commercial market, the report shows that rents for industrial warehouses have continued to rise, with average Class 1 rents at Dubai Investments Park (DIP) rising by 13%.

Compared to this time last year, rents are up by 29%, reflecting the strength of demand from occupiers to secure space at DIP, which is viewed as an integrated industrial estate due to the schools and residential elements present. In some instances, basic sheds have seen rents double over the last twelve months to over AED 40 psf.

Durrani comments: “With Al Quoz continuing to evolve as a trendy area, the rising rents are leaving some light industrial occupiers to consider other

Cluttons’ latest report indicates that TechnoPark offers occupiers a chance to establish freezone branches, something not available at any other onshore industrial estate, which is aiding in its increased popularity. The previously announced halal foods and cosmetics clusters are to be complemented by an e-commerce cluster, called Matajircom, which will offer SMEs and multinational occupiers an integrated e-commerce business platform.

The unveiling of Matajircom is underpinned by the Government’s efforts to tap into the region’s AED 30 billion e-commerce market. The GCC alone accounts for roughly half of the MENA region’s e-commerce activity, which is projected to grow by 35% during 2015 (Visa International).

The expansion of the sector is driving requirements for more secondary and tertiary space, and to an extent the market is already benefitting from this. the Grade A supply deficit unlikely to ease in the near term across the city’s office submarkets, attention appears to be turning to Business Bay, which not only represents an extension of the Downtown Dubai and DIFC, but is also where land plots are still available, unlike more core parts of the city. The growth in the strength of demand for land plots at Business Bay is evidenced by the sharp rise in land values, which have risen from between AED 200 psf to AED 250 psf in 2012 to about AED 400 psf today for well situated, prime mixed use or residential plots, representing a 60% to 100% increase in prices over the last 48 months.

Cluttons’ report shows that, with prime office space in desirable centrally located submarkets and freezones remaining

Gulf Insider February 2015

29

Affairs

LIVING DANGEROUSLY ‘WHEN WESTERN AID WORKERS ARE TAKEN HOSTAGE, MY BLOOD RUNS COLD. IT COULD BE ME’

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s an aid worker living in the Middle East, one of the first things you learn is how to drive to the border. Because if your driver is killed when you’re trying to get away? You just have to keep on going. The alternatives don’t bear thinking about. There’s a real risk of injury, kidnap - or worse.

Jo Harrison had a job as a TV producer and a comfortable life in the UK. But she gave it all up to work for a charity in Gaza.

Greta Ramelli (L) and Vanessa Marzullo - kidnapped in Syria. Thankfully they were released in January. Photo: Facebook 30

Gulf Insider February 2015

Many humanitarian aid workers have been killed in Gaza. And now Westerners are being held hostage by Isil - including many aid workers. Such news makes my blood run cold. It could so easily be me.

That’s the reality of life as an aid worker in one of the most conflicted parts of the world.

I’m currently stationed in Gaza. But my work with the charity ActionAid takes me all over the Arab states. It’s a far cry from my previous job in Britain, where I was a TV producer.

Three years ago I decided to quit my job and go to work for a charity. With my TV experience, they deployed me to shoot video during emergencies, take photos and gather stories from local people. I travelled around the world doing this and last year, I landed in Gaza. I made many friends and ended up staying for nine months. Now, it’s one of the areas I cover permanently for ActionAid. I’m constantly in and out.

The injustice I’ve seen in Gaza has really stayed with me. The people are under blockade – essentially they can’t leave what’s one of the most densely populated places in the world. Water is a big issue: more than 90 per cent is unfit for drinking and it often gives people rashes when they bathe in it. The region’s only power plant was destroyed, so there’s a schedule of when the electricity will come on. Most locals spend their evenings in total darkness.

Since there’s no export allowed, the economy is crippled and unemployment is high. 80 per cent of people live on aid.

So, while it’s incredibly dangerous for Western aid workers, like me, to be in such places, there’s really no alternative.

Without us to communicate what we see on the ground, they’d starve - or worse.

I’ve seen the best and worst of humanity. Visiting communities where people have nothing - but still manage to have huge smiles on their faces, makes you realise what’s really important in life.

I have many local friends, too - all over the Middle East. In Gaza, they’re mostly mothers and talking to them is sobering.

The hardest thing, they tell me, isn’t the fear for their own lives, but how they feel when their children ask: “What will I do if you die?”

Affairs

of knickers, my phone and camera chargers, and passport. When I’m working in Gaza, I also have a hibernation kit: bottles of water, tinned food and tin opener. This is in case a battle kicks off and I have to hide out somewhere until it dies down. I haven’t thought about my appearance in months. It’s the least of my worries.

Jo Harrison in Gaza

Jo at work in Gaza The adults too, are suffering from extreme trauma. On top of caring for their families, they have practical responsibilities to consider: rebuilding their homes and finding new ways to

earn money when their factory, office or farm has been destroyed.

As an aid worker, I’m always prepared for an emergency and have a ‘grab bag’ with me at all times. It contains a pair

I’ve seen the best and worst of humanity. Visiting communities where people have nothing - but still manage to have huge smiles on their faces, makes you realise what’s really important in life.

When I read the comments from the mother of Greta Ramelli - the 20-yearold Italian aid worker kidnapped in Syria - my heart went out to her. Responding to criticisms that she shouldn’t have ‘let’ her daughter come to the Middle East, she said: “Can you change your daughter, who has these values and has strong ideals about solidarity and human empathy?”

Despite the danger, I wouldn’t change what I do. It’s shocking and deeply saddening to hear about my fellow aid workers being held hostage.

I hope desperately for their safe release (thankfully they were released in January - ed). But it won’t stop me, or other women aid-workers, helping rebuild the lives of the people of Gaza. After all, if we don’t - who will?

ActionAid is one of the major UK agencies who are part of the Disasters Emergency Committee.

Gulf Insider February 2015

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Affairs

BRITISH IN AFGHANISTAN “Worse than a defeat:” the far-reaching lessons of the British in Afghanistan.

H

ere’s an excerpt from a review of books about the British Army in the western Afghanistan region along the Helmand River from 2006 onward.

It’s by James Meek in the London Review of Books.

Alderson got to set up a counter-insurgency centre for the British army in 2009. This might seem like progress of a kind, were it not for powerful evidence that the war the British and the Americans fought in Helmand wasn’t a counter-insurgency at all. Mike Martin’s extraordinary book [An Intimate War: An Oral History of the Helmand Conflict], based on interviews with 250 people, almost all of them Helmandis, lays out the wrong-headedness of the mainstream Western characterisation of the situation in Helmand from 2006 to the present day as a ‘Taliban insurgency’ against a ‘legitimate government’, which the British were helping stand up after a long, tyrannical deviation from civilised norms.

Martin, a Pashto speaker, a British officer who served in Helmand in the late 2000s and a protégé of both Alderson and Newton, argues that ‘insurgency is a pejorative term, one that is useful to governments in establishing their legitimacy or that of their allies and in defining their enemies.’ Martin believes that the conflict in Helmand should be seen as ‘a continuing civil war’. Because the British were ignorant

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Gulf Insider February 2015

of what was really going on – due, in large part, to their short six-month tours of duty and lack of linguists – they were manipulated into becoming pawns in long-running conflicts over land, water, drugs and power between local leaders.

British commanders in Helmand always knew they began with two big handicaps, over and above the shortage of men and helicopters.

One was that the British army has a history of invading Afghanistan. The other was that they came to Helmand with the intention not only of making it a safer, better place, but of destroying the mainstay of its economy, opium farming.

Afghanistan was (and still is) the source of most of the world’s heroin, and Helmand is the centre of poppy-growing. Most farmers depend on it for their livelihood. It was as if an Afghan army had come to Scotland proclaiming that they would make it better, and that their first step would be to blow up the distilleries and oil rigs. In fact, Britain underestimated the first factor, and misunderstood the second. … The British were hated in Helmand before they’d fired a shot, although generally the locals were too polite to say so. … The reaction to the British arrival was one of astonishment.

A popular local assumption was that the British had come for revenge [for two wars Britain fought in Afghanistan in the 1800s]. ‘From the perspective of the Helmandis,’ Martin writes,

Affairs

‘the historical enemy had just turned up for round three.’ … In Martin’s analysis, seemingly cynical yet backed up by his heroic research, each outside intervention in Helmand – whether from an Afghan government in Kabul, from Moscow, London, Peshawar, Quetta or Washington – has two negative effects, whatever benefits it might bring. First, it lays down new local grievances on top of old ones that remain active. Second, it gives tribal barons new sources of funding and new ideological guises they can exploit in order to settle those grievances. These guises, these idealistic labels concealing the striving for clan or tribal advantage – the ‘mujahedin’ label, the ‘government’ label, the ‘communist’ label, the ‘Taliban’ label, even the ‘pro-British’ label – are what Martin calls ‘franchises’. Agencies from beyond Helmand give local big men money and/or weapons to act in their name, and a cause by which to justify their actions.

The local leaders then bend this external support to personal ends. …

When the Taliban was pushed away in 2001 the ‘government’ franchisees soon re-established themselves. These were the hated mayors, policemen and secret policemen – who set up countless illegal checkpoints to extract tolls from travellers, stole their rivals’ opium and tricked Western troops into sending their personal enemies to Guantánamo – that British forces spent eight years fighting and dying for.

The British, Martin explains, were never fighting waves of Taliban coming over the border from Pakistan: they were overwhelmingly fighting local men led by local barons who felt shut out by the British and their friends in ‘government’ and sought an alternative patron in Quetta. The Taliban provided money, and a ready-made, Pashtun-friendly ideological framework the barons could

The (Local) reaction to the British arrival was one of astonishment.

A popular local assumption was that the British had come for revenge.

franchise. Since the British were hated even before they arrived, recruitment of foot soldiers was easy. … The British and Americans, accordingly, got played; the Pakistanbased Taliban, who were more familiar with the territory, did better out of allowing the Helmandis to attack the British under the ‘Taliban’ brand.

But their success was limited… The Helmandi ‘Taliban’ were following their own agenda. … The small contingent of US special forces based in Helmand between 2001 and 2006 didn’t mean to poison the well for their successors, but that was what they, together with the mujahedin commanders, did. The commanders used the Americans to target their enemies, and get US bounty money, by branding their rivals ‘Taliban’ and having them sent to Guantánamo.

International poppy-eradication efforts were deliberately directed by commanders against rivals’ fields. The commanders attacked one another. They fought over control of the checkpoints used to shake down travellers. They stole opium from one another’s clients.

They stole the opium harvests of the poor. They ruthlessly preyed on anyone whose safety wasn’t guaranteed by the big protection networks. They stole land.

They dragged the Americans into longrunning quarrels.

It is difficult to imagine how the situation for the British could have been less favourable. Their lack of resources, their lack of local knowledge, their mandate to attack the Helmandis’ chief means of livelihood and the popular belief that they had come for revenge would have been bad enough, without an indigenous, Taliban-branded revolt against marauding ‘government officials’ being joined by those very ‘officials’ and their men. To make matters worse, only the top commanders had been taken out of government – those who, no matter how badly they behaved, had the ruthlessness, negotiating skills and authority to bring whole communities on side. The British were left to try to work with – to try to fight for – the secondtier ‘government officials’, often the least capable and most rapacious lieutenants of the dismissed commanders.

Gulf Insider February 2015

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Affairs

IRANIAN FOOTBALLERS

WARNED FOR POSING FOR SELFIES WITH FEMALE FANS

A female fan holding an Iranian flag inscribed with a marriage proposal to Haghighi emblazoned across it.

Alireza Haghighi (left)

I

ran’s footballers have been warned they could face punishment if they take selfies with female fans at the Asian Cup. The head of the Iranian Football Federation’s moral committee said players risked being used as a ‘political tool’ if snapped with female fans.

Women are banned from attending men’s sports events in the Islamic republic but they flocked to see Iran’s games hosted by Australia where no such rule applies.

Head of Iranian Football Federation’s moral committee, Ali Akbar Mohamedzade, issued the warning as photos of players with female fans circulated on social media.

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Gulf Insider February 2015

‘National team players should be aware that they won’t be used as a political tool so that those who take pictures with them don’t use these photos against the players,’ Iran’s Shahrvand newspaper quoted him as saying.

‘So according to this they should not take photos with everyone. If the players don’t respect this, we will be obliged to take action.’

However, there has not been any details on what punishment the players might face.

Enthusiastic male and female fans of Iran, many wearing the team shirt, have been a prominent feature throughout the Asian Cup.

Enthusiastic male and female fans of Iran, many wearing the team shirt, have been a prominent feature throughout the Asian Cup.

The multi-award winning Arabian magazine

PLAY for WORK see page 08

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GIFT IDEAS FOR HIM AND HER www.Gulf-Insider.com

News

GULF ROUNDUP NEWS AROUND THE GCC AND BEYOND

LIFE IN THE GULF Three Stations to Connect Bahrain to GCC Rail At least three train stations will be built in Bahrain that will be connected to the GCC railway network. Bahrain will be connected to the grid through a station in Dammam, via the King Fahad Causeway, that will also be connected to Kuwait, Qatar, and North West of Saudi Arabia, said a report in the Gulf Daily News (GDN).

Bahrain Chamber of Commerce and Industry (BCCI) transportation committee chairman Abdulhakim Al Shemmeri said the stations are planned for construction at the Khalifa bin Salman Port, Bahrain International Airport, and Amwaj Islands.

The deadline to start construction for all GCC countries has been set at the beginning of 2018.

However, Al Shemmeri criticised the government for delays in planning the project.

“We were at a conference in Muscat last week and the BCCI observed what was being done by other GCC countries,” he explained. “Qatar has already started and will begin construction soon; Saudi has already begun building the line connecting the north to the south; in Oman, the planning is almost done. But, in Bahrain, very little is being done.” – TRADE ARABIA

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Exotic Animals ‘Have Replaced Stuffed Toys’ for Children in UAE Exotic wild animals have replaced stuffed toys for many schoolchildren in the UAE and with their parents’ consent, a top official said.

“We noticed that the main problem is related to kids who would like to have [exotic] animals and play with them as a toy. I am mentioning this to draw the attention to who is driving the demand for exotic animals: the demand is from kids,” Dr Elsayed Mohammad, Regional Director at the International Fund for Animal Welfare (IFAW) - Middle East and North Africa, told Gulf News.

“You will see mostly families, not individuals, going to the shop with their kids to buy what range from reptiles to primates sometimes, mammals, and many different species,” Dr Mohammad said. And, this trend involves no specific group, race, or social status.

The comments came during a meeting with Dr Jane Goodall, renowned primatologist, anthropologist and UN Messenger of Peace, who came to the UAE for the official launch of her Roots and Shoots programme last month. – GULF NEWS

Bahrain’s New Traffic Law Soon in Effect

Bahrain will introduce a tough new traffic law from February 8, 2015.

The new law, which was ratified by King Hamad last July, will see punishments for some motoring offences quadruple, according to a report in Gulf Daily News.

The newspaper reported that deliberately jumping a red light could lead to a jail term of up to six months and fines of up to USD 1,326 (BD 500). The new law excludes the controversial plan to ban expats from driving unless their jobs required it. – ARABIAN BUSINESS

News

Banana Island Resort Unveiled in Doha HE Sheikh Abdullah bin Nasser Al Thani, Prime Minister of the State of Qatar and the Minister of Interior, inaugurated the ‘Banana Island Resort Doha by Anantara’, last month. The luxury brand’s first resort in Qatar will be developed by Al Rayyan Hospitality, which developed other hospitality projects in Qatar, including Souq Waqif, London’s Orya Hotel, Salwa Resort, in addition to the hotel and spa at Masila.

KSA: Population Control Policy Debate The Shoura Council decided to present a controversial population control policy document, prepared by the government, to Custodian of the Two Holy Mosques King Abdullah after it was rejected twice by the 150-member strong consultative body.

The Shoura Council has been debating the issue of birth control prepared by the Ministry of Economy and Planning for the past four months.

Saudi economists have emphasised the need for population control to preserve the country’s economic resources. “Families have to apply birth control in order to reduce expenses and provide better education and facilities to their children,” said Fadhel Al-Bouainain, an economist.

He described the Kingdom’s population growth as the highest in the world. According to the latest census, the kingdom’s population has reached nearly 20 million translating into a doubling of the population during the last 15 years. – ARAB NEWS

Bahrain’s Primavera Welcomes Michelin Star Chef Oliver Glowig An extensive panel of local media was invited to Primavera restaurant last month, for the official press announcement of the partnership between Michelin Star Chef Oliver Glowig and The Ritz-Carlton, Bahrain Hotel & Spa. Oliver is a renowned chef for Italian cuisine, who has been credited with two Michelin Stars in his career.

The highlight of the event was the lunch where attendees could taste Chef Oliver’s creations that will be part of the new menu, with the official re-launch of the restaurant due for the spring season, or “Primavera” in Italian.

Less than 25pc in Bahrain Happy with Jobs

Bahrain Noor El Ain Signs Up on Kouponer.com

Less than a quarter of people in Bahrain are happy in their current jobs, according to a new survey. A total of 8,963 people across the region took part in the Bayt.com’s Career Aspirations in the Middle East and North Africa survey, but the number of respondents in Bahrain was not stated.

“The UAE is the most popular destination for Bahrain respondents, who would consider relocating for employment purposes.” Over half of those surveyed in Bahrain said they deserved more from their employer, and almost half were willing to switch careers to find a job with prospects. – GULF DAILY NEWS

In an initiative to offer even better deals for its shoppers, Bahrain Noor El Ain (BNEA) has partnered with Kouponer.com, Bahrain’s premier online e-coupon store.

Visitors on Kouponer.com will find great deals from BNEA’s participating outlets before they go shopping. They can then download the exclusive BNEA coupons from the website, which can then be redeemed at the participating outlet.

For more information, visit www.bahrainnoorelain.com.

Gulf Insider February 2015

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News

Revealed: The Most Punctual Airlines and Airports in the World

Gunshots Fired at Saudi Haia Chief’s Office The office of the head of the Commission for the Promotion of Virtue and the Prevention of Vice (Haia) Sheikh Abdullatif Al-Asheikh came under gunfire after he announced the launch of the Haia’s new charter, Al-Hayat Arabic daily reported.

“There are many members of the Haia who exploit their position, knowledge, and power for personal gains and interests. Many have tried to talk me out of my decision to renew the charter and some have even stalked me,” said Al-Asheikh while explaining that the opposition was due to the fact that the new charter aims to prioritise justice and social service.

Al-Asheikh clarified that corruption is not only spread through the Haia.

“The Kingdom has gone through immeasurable changes during the past few decades. The Haia needs to follow suit and acknowledge that it is no longer the judicial body of the kingdom like it used to be. In the past, the Haia ensured justice for the people by imprisoning convicts and defending plaintiffs.

Haia members used to also pose as police officers ensuring the safety of a neighbourhood. With the development of the country, roles and responsibilities have become more bureaucratic and are constitutionally dispersed among government directorates,” said AlSheikh.

“Many members of society have previously spoken up against the Haia’s retrogressive and violent approach and we have taken that into account to ensure that our regulations serve justice to Saudis and non-Saudis alike,” he added. – SAUDI GAZETTE 38

Gulf Insider February 2015

Saudi Arabian Airlines has been deemed the most punctual airline in the Middle East and the seventh best worldwide, according to the results of a new global report.

The OAG Punctuality League considered flights to be ‘on-time’ if departures and arrivals take place within 15 minutes of the scheduled time stated on the original ticket. The report found that Saudi Arabia Airlines had a score of 89.4 per cent.

To qualify for inclusion in the OAG Punctuality League, airlines must supply data for at least 80 per cent of their scheduled flights or operate a minimum of 18,000 scheduled flights each year.

As a result, only six airlines in the Middle East and Africa meet the OAG criteria to be featured on the list. OAG found that none of the airlines in the region achieved an on-time performance of greater than 90 per cent in 2014. Dubai’s Emirates scored 80.01 per cent and Abu Dhabi’s Etihad Airways was ranked sixth with a score of 56.8 per cent. Ethiopian Airlines is the only African carrier to make the grade. In the airport rankings, Dubai was ranked 14 in the large airports category (those with over 20 million passengers a year) and scored an on-time score of 82.3 per cent. The average for the top 20 airports in the category was 82.9 per cent, with Munich taking the top spot with a score of 89 per cent. – ARABIAN BUSINESS

Saudi Fatwa Banning Snowmen Triggers Heated Debate Saudis in the northern areas drew on their imagination and sense of fun as they braved the cold weather to build snow camels in a rare tribute to the local culture. However, it was not all fun for Saudis after a religious scholar said that building snowmen or snow animals was not acceptable in Islam. The fatwa,

by Mohammad Saleh Al Minjed, said that building snowmen or any replica of an animal, even if it is for fun or recreation, could not be condoned.

Only lifeless things, such as ships, fruit, and buildings could be imitated, the fatwa said.

No date was mentioned about when the fatwa was issued, but it was widely circulated on social networks, triggering a wide and often heated online debate mainly among Gulf nationals. – GULF NEWS

Travel

5 SUPER SUCCESSFUL PEOPLE SHARE THEIR BEST TRAVEL TIPS In their most recent editorial package, “Out of Office,” LinkedIn asked top minds to share their best insights on getting the most out of business travel. Over 60 leaders across all industries provided original posts chronicling their worst traveling experiences, favorite tips for flying, and lessons they’ve learned over years of business trips. Here’s what 5 of these super successful people had to say:

Beth Comstock says that if packing were an Olympic sport, she would be a gold medalist

Halliburton president Jeff Miller wakes up at 5 a.m. local time, no matter where he is

The General Electric chief marketing officer avoids hassles in the event of a last-minute flight change by traveling only with a single carry-on bag.

To make everything fit, Comstock packs light and employs a lightweight, fabric bag with lots of pockets and zippers. She also recommends utilizing hotel laundry services to stretch a small wardrobe (which she builds around a single pair of business shoes) over a long trip.

Though it can sometimes be painful, Miller thinks it’s extremely important to get in sync with his surroundings in whatever city he’s in.

He also recommends going for a run outdoors, not only as a means of recharging the body and soul, but as a method of getting an up-close look at the city that other tourists and businesspeople don’t often get. “In my travels, I’ve run through the streets of every major city of the world. London, Paris, Beijing, Bangkok, Rio de Janeiro, New York,” he said.

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Don Peppers has a foolproof plan to avoid jet lag The self-described “thought leader” and Peppers & Rogers Group founder says that once he gets on the plane, he makes the international timezone his primary time, which changes the timestamps on emails and the time on the computer’s display screen.

Then, he begins the transition for real by only eating and sleeping when he would in his destination city, using a 3 mg dose of melanin to help fall asleep. Once he lands, he furthers his adjustment by exercising in the morning to help set his mental clock and refusing to take a nap (which can make people revert to their original timezone).

HighTower CEO Elliot S. Weissbluth uses his time on planes to disconnect The financial services executive says he appreciates the lack of in-flight distractions because it allows him to put on some noise canceling headphones and let his mind wander.

Weissbluth massages the creative part of his brain by reading novels and long-form non-fiction, and by listening to his favorite music (specifically, Led Zeppelin). “If you want to improve productivity and focus, you need to let your analytical mind rest,” he writes.

Arne Sorenson, CEO of Marriott International, believes the biggest mistake of business travel is avoiding it There’s nothing like meeting colleagues face-to-face, on their turf,” he says. “It not only expands a leader’s perspective, but it also builds relationships that are the foundation of every company.”

Though many leaders gripe that unnecessary travel is costs to much to justify, Sorenson notes that networking face-to-face builds relationships in a way that digital correspondence can’t replace. Sorenson also greatly values the varied perspectives and insights he gains from getting out of the office and exploring new places.

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Life

BILLIONAIRE SHAIKHS IN DUBAI These images are from social media. We can only guess the stories behind them.

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Gulf Insider February 2015

Publicity image for Aston Martin which is presumably delivered to a “billionaire shaikh”

Life

LOVE IS IN THE AIR! V-DAY DINNER IDEAS

For romantic dinner ideas, look no further. Here are some of the island’s best love-themed getaways that’ll put you in that extra-special loved up mood.

FINE DINING

to 11:00 pm (advance reservation is required) Sign Up: +973 1758 6499

PLUMS, PRIMAVERA, NIRVANA, LA MED PRIMAVERA Offer: A toast for two at Primavera Details: Take your beloved one out to a romantic dinner and enjoy a four-course set menu, including a complimentary toast for two (two glasses of bubbly).

Price: BD 45 net per couple Location: The Ritz-Carlton, Bahrain Hotel & Spa, Seef Timings: Every evening from 7:00

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Gulf Insider February 2015

Offer: Valentine’s dinner Details: Romance the one you adore with a delectable Valentine’s Day dinner designed especially for love. The evening will feature chefs’ culinary composition, paired with Sommelier’s selection of a la carte beverages, plus some surprises.

Price: A la carte Timings: February 14 Location: The Ritz-Carlton, Bahrain Hotel & Spa, Seef Sign Up: +973 1758 6499

LEGENDZ STEAKHOUSE Offer: Chef’s Gourmet Menu Details: Chef David Bell presents a unique dining experience, where he will create a tailored five-course menu to let you explore the best food and wine Bahrain has to offer. Each menu will be personalised to your own tastes, with added option of matching wines with your meal.

Price: BD 28 per person Location: InterContinental Regency Bahrain, Manama Timings: Daily, during restaurant opening hours Sign Up: +973 1722 7777

Life

LEGENDZ STEAKHOUSE Offer: Valentine’s Day dinner Details: A four-course menu with one glass of bubbly upon arrival. Enjoy two glasses of house grapes at Elements Pool & Lounge after your dinner.

Price: BD 22++ per person Location: InterContinental Regency Bahrain, Manama Timings: 7:00 to 11:00 pm Sign Up: +973 1722 7777

LINKS Offer: Valentine’s dinner Details: Enjoy the romantic ambience with spectacular golf course views from the floor to ceiling windows and live romantic music. Package includes fourcourse dinner with appetisers, a shared trio of desserts, a welcome beverage, and a rose for the lady.

Price: BD 34 net per person Location: The Royal Golf Club, Riffa Views Timings: February 14 Sign Up: +973 1775 1262

ZODIAC LOUNGE H2O LOUNGE Offer: A special candlelight dinner Details: Includes live barbecue station and unlimited house grape, accompanied by romantic music and décor.

Price: BD 30 net per couple Location: Elite Grande Hotel, Seef Timings: February 14 Sign Up: +973 1756 5888

Offer: Valentine’s dinner Details: Includes selection of finger bites platter and pre-plated special dessert with unlimited house grape, in addition to special music and décor.

Package includes complimentary red rose and heart-shaped cake (400 grams) for each couple.

Price: BD 30 net per couple Location: Elite Grande Hotel, Seef Timings: February 14 Sign Up: +973 1756 5888

THE ROYAL GOLF CLUB Offer: Wow Your Woman This Valentine’s!

Details: Gents, join the Royal Golf Club’s Executive Chef Paul Gindra to learn how to cook your loved one a fabulous threecourse Valentine’s dinner. Classes are open to men only.

Price: BD 30 per evening, per person Location: Riffa Views Timings: February 3 and 4 (two-day course), from 6:00 to 7.30 pm Sign Up: +973 1775 0777

KLUB 360 Offer: Valentine’s themed parties throughout the week Details: Special new signature cocktails and DJ Rico Sanchez will be setting the mood for lovers throughout the week.

Price: Free entry for couples Location: Elite Crystal Hotel, Juffair Timings: February 8 to 14 Sign Up: +973 1736 0360

WAIKIKI AND LA BRASSERIE Offer: Valentine’s dinner Details: Love birds will enjoy open buffet, live grill buffet, chocolates, and roses, in addition to complementary bottle of grape for the first ten couple’s reservations.

Price: BD 30 net per couple Location: Elite Resort & Spa, Manama Timings: February 14, 7:30 pm to midnight Sign Up: +973 1731 3333 Gulf Insider February 2015

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Life

3 LESSONS ON

SEDUCTION, POWER, AND MASTERY

By Robert Greene, bestselling author of 48 Laws of Power

Seduction Seduction involves surprise, which is generally the first thing that disappears after you’ve been in a relationship, and why there’s no more seducing that goes on. Everything is familiar and you’re no longer surprised by the other person.

Great seducers orchestrate surprise and never let relationships become too familiar. A great seducer is able to create moments where the other person sees you do something that they didn’t expect so they build you up in their mind into something perhaps better than what you really are. Surprise overcomes the opposite of seduction, which is familiarity.

Power There’s the obvious direct form of getting power, which is you go kill or rob someone, but since we’re social animals and live in groups, in most cases you can’t be obvious and direct in how you get what you want as people will resent 46

Gulf Insider February 2015

Being a master means experimenting and challenging yourself, trying to do things against the rules that you’ve learned. you. So people learned to be indirect.

And that’s where deception comes in.

We judge things by appearances. If someone appears to be nice, we think they must be. We’re very gullible.

Mastery You’ll never have the patience and the persistence to put up with all the boring parts that go into mastery, the repetition

and learning rules and procedures, if you don’t love what you’re doing. How do you figure out what you love? First, stop waiting for a “lightbulb” to suddenly appear over your head. It’s never the case that you wake up and know “This is exactly what I have to do.” You try things out, some things work, some things don’t work, but be actively going in a direction. Eventually, something clicks.

What’s the first step toward mastery?

Don’t take the job that offers you the most money. You’re after learning. By your early 30s, if you play it right, you’re going to be able to write your own ticket because you have the kind of skills that are so necessary in this world.

The internet is your greatest friend — and your greatest enemy. What it took da Vinci 10 years to learn about anatomy, we can learn in five minutes on the internet. At the same time there are so many distractions so you must develop discipline and ignore these distractions if you want to be great. You have to turn off your phones, and turn off the Internet, and focus. Steve Jobs is the master we most venerate in our contemporary times. This was a man who would disappear, meditate, close the door, no one could come in and see him. He would think deeply on whatever problem it was he was trying to attack.

If you’re able to have that degree of self-control, then the Internet and all its power is an incredible resource to better yourself.

It’s easier to do what everyone else is doing, so very few people enter the next phase towards mastery - the creative phase. Being a master means experimenting and challenging yourself, trying to do things against the rules that you’ve learned. That’s what masters do. They first learn the rules in order to break the rules in order to rewrite the rules. That is how you become a master of your craft.

Life

MORE OF MY BEAUTIFUL BAHRAIN

T

he My Beautiful Bahrain book series is the creation of writer and author Robin Barratt, who lived in the Kingdom for four years and formed the well-known Bahrain Writers’ Circle, now the biggest group of international writers in the region.

The original My Beautiful Bahrain was put together and published in Bahrain in 2012 in order to counter the bad publicity the Kingdom had been having in the international media at around that time. Written by both locals and expats, My Beautiful Bahrain was a collection of personal stories and poetry about life and

living on the island. Now Robin has put together another collection of personal stories, mainly from non- Bahrainis, who call Bahrain their home. There are twenty-seven chapters by 24 writers from almost as many nationalities., each chapter unique and personal to its writer; from giving birth to desert camping.

Also included is some poignant poetry about the island, its people and places.

A must-read for travellers and visitors to Bahrain.

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WHAT TO LOOK OUT FOR IN 2015?

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You can now read our magazines virtually at

www.bahrain-confidential.com Gulf Insider February 2015

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Life

THE RICH KIDS OF TEHRAN

T

he Instagram account Rich Kids Of Tehran reveals what life is like for some of Tehran’s extremely children of Iran’s upper classes, mostly in their teens and early 20s.

The account describes itself as ‘Stuff they don’t want you to see about Iran’.

When Gulf Insider contacted the email address that is linked to the Rich Kids Of Tehran account, we received details about life inside Iran for the young and super-rich.

The owners of the account, who wish to remain anonymous, told us that their pictures provoke a range of reactions and added: ‘They all are different - some are

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Gulf Insider February 2015

positive, some say they are shocked!’

They claimed that ‘Porsche Panamera GTS costs anywhere from $300,000 to $450,000 in Iran and there over hundreds of them in just Tehran alone. Maseratis which are everywhere in Tehran cost just over $300,000.’ They also revealed that ‘the cars all have been imported and there is 40% import tax based on the actual price of the cars valued in Tehran.

The account has created an angry backlash, and a rival account called Poor Kids Of Tehran had been set up to reveal what life is like for the people living in poverty in the city. A report issued last year by the International Federation of Human Rights estimated that between

Life

45 and 55 per cent of the Iranian population lived below the poverty line in the country.

When asked where they thought the money that funded the fantastic lifestyles was coming from despite the sanctions, they replied: ‘That’s the billion dollar question!’

They added: ‘What you don’t see or hear is the same parents of the same Rich Kids Of Tehran are helping and providing jobs for the people in Iran, as well as bringing revenue from import and export to the country. They are factory owners and business men who help the country.’

Since the 1979 revolution, religious rules have required women to cover their hair and dress modestly while in public and also insist men must dress conservatively, and alcohol is forbiden (though these rules are seemingly ignored by many of those in the photos). The country has faced strict sanctions since its pursuit of a nuclear programme was revealed in 2002. The United States and European Union have also imposed further sanctions on the country’s oil exports and banks since 2012 which have harmed the economy.

Gulf Insider February 2015

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Style

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Gulf Insider February 2015

Long necklace by Chopard 18-carat white gold set with 5 bezel set diamonds (3.6 carats) Ref 819502-1001 Price upon request

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Style

FOR HER Portofino Midsize Automatic by IWC Schaffhausen 18-carat red gold case, set with 66 diamonds and a slate-coloured dial Ref IW458108 BD 7,745

FOR HIM Portofino Hand-Wound Eight Days by IWC Schaffhausen 18-carat red gold case, dark brown alligator leather strap, an Ardoise dial, and a transparent sapphire-glass back Ref IW510104 BD 8,085 Watches available at Asia Jewellers.

For more information, calll +973 1743 1177.

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Piaget Altiplano cufflinks 18-carat white gold and onyx Ref G31A2800 Price upon request Piaget Heart earrings 18-carat white gold set with 28 brilliant-cut diamonds (approx.

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Piaget Rose ring 18-carat pink gold set with a brilliant-cut diamond (approx. 0.06 carats) Ref G34UR400 Price upon request

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Jewellery pieces available at Bahrain Jewellery Centre.

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Gulf Insider February 2015

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Gulf Insider February 2015

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Motors

CAR NEWS COVERING THE LATEST UPDATES FROM THE REGION AND BEYOND

THE CRAFTED LINE SPECIAL EDITION LEXUS DEBUTS IN BAHRAIN Ebrahim K. Kanoo announced the arrival of The Crafted Line Special Edition Lexus at the Lexus showroom. The limited edition vehicles bring an even more contemporary edge to the aggressively styled 2015 LS 460 F SPORT, GS 350 F SPORT, IS 350 F SPORT, and ES 350. The new models feature a white nova exterior with contrasting piano black door handles, side mirrors, and a mesh grille. The exterior is complemented with exclusive two-tone black and garnet interior. These vehicles have additional convenience features, which vary by model.

THE NEW FJ CRUISER TRD ARRIVES IN BAHRAIN Ebrahim K. Kanoo announced the arrival of the new Toyota FJ Cruiser, fitted with TRD kit, at the Toyota showroom in Sitra. The FJ Cruiser, with its retro styling has been designed to cope with the demands of the off-road driving.

The new TRD variant’s add-ons include TRD shock absorbers, TRD coil springs, sporty TRD 17” wheels, and TRD exhaust muffler pipe. The FJ Cruiser comes with a 4.0-liter, V6, 268HP engine, a 5-speed automatic transmission, and an active traction control (TRC) and hill start assist (HAC).

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Gulf Insider February 2015

WHY ARE SO MANY CAR MAKERS CHANGING THEIR MODEL NAMES? Mercedes is the latest to change its naming policy as they try to group car names together. The idea is that a car’s badge should show which branch of the “family tree” they come from. Resulting from this new policy the GLS is now the name for what was the Mercedes GL. There is a clear logic to doing this, as it means all Mercedes SUVs now have GL at the beginning of their name. Further, the S signifies it is part of the S-class family (i.e. it’s a full-sized SUV). Likewise the new GLE Coupe is the offroader (GL) sized like an E-class (E) and it’s a Coupe.

So far it all makes perfect sense, but suddenly the logic all falls apart for cars such as the G-Wagen, which continues to be called G? Why? And why is the CLS not called a CLE? Surely its name clashes with the new S-class Coupe? And shouldn’t the SL become an SLS? Car ranges have become complicated. The full Mercedes range has multiplied multiple times since years back when there were just five.

And Mercedes are not alone. Audi’s range will grow to 60 models within the next 5 years. Infiniti recently overhauled its naming policy.

BMW have over the years added 1,2,4,6,8 to their once simple lineup of 3, 5, and 7 series. Fords and Peugeots are also bringing out lots of new shapes as marketing departments decide on new long-tail market segments.

Motors

SAILING HOME TO ABU DHABI …Amazing photos from the Volvo Ocean Race.

A

fter completing over six thousand miles, Abu Dhabi’s yacht ‘Azzam’, which means ‘determination’, recorded some amazing photos of its voyage towards its home port. The six remaining teams in this grueling round the world yacht race sailed into Abu Dhabi in December from Cape Town, resting for Christmas and New Year before setting sail for China on January 3rd.

Gulf Insider February 2015

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Motors

SAUDI YOUTH

IN HIGH-SPEED REBELLION

A

s more and more cars joined in, the procession snaked its way through the sprawling city like a massive hydra, adrenaline-filled shouting peppering the blasting music and the roaring engines. I was driving inside a parade of about a hundred cars, streaming down all four lanes of the ring road at 110 mph, close enough to other vehicles to follow every emotion on their passengers’ faces. Something odd happened. Carried away by the scene, I burst into laughter and shouted in Rakan’s direction, “This is awesome!

This is what I should have been doing all my life!” I was excited to drive fast, to break the law, to belong, even for a night, to a community of agitated young men who were defying the police in a country reputed for its harsh handling of the slightest incivility. Speed had given me a sense of invulnerability I had never experienced before.

We were speeding to catch up with the procession after another drifting 56

Gulf Insider February 2015

show when catastrophe struck. A driver started to spin his Camry ahead of us, in the middle of a group of twenty cars moving at about one hundred mph.

The surprising behavior of the police and Ajib’s conduct pointed to an unspoken alliance between law enforcement and law breakers.

His car began to waltz on the asphalt, sliding with a shriek while presenting its flank to us. It hit another car, hurling

it onto a security rail on the left side of the freeway. The entanglement of cars, skidding fast in front of us, was so terrifying that I stepped on my brakes.

Finding a way out on the right side of the road, I accelerated again to avoid triggering a pile-up.

It was too late: a powerful shock projected us toward the dashboard and then back into our seats. Still accelerating, and with my car making an alarming noise, I looked for a safe spot and pulled over away from the gigantic accident that I imagined was unfolding.

The driver of the other car stopped behind me. I gazed at the highway, expecting to find a heap of cars and wounded drivers. To my bewilderment, the asphalt was empty. All the cars had sped up and avoided the accident my clumsiness should have caused.

A police patrol car soon reached us. Before he opened his window, the policeman popped a captagon (amphetamine) pellet into his Power

Motors

Still accelerating, and with my car making an alarming noise, I looked for a safe spot and pulled over away from the gigantic accident that I imagined was unfolding.

Horse energy drink and swallowed it with a gulp. Seeing that nobody was hurt, stumbling and stuttering, obviously unable to articulate his thoughts, he unexpectedly drove away, soon followed by the other driver. Calling from his car, ‘Ajib told us to fix our car and join them, but I needed the help of more than just a mechanic, and Rakan and I spent the next few hours at the hospital for a checkup.

The accident happened a year after I arrived in Riyadh. I had started my study of drifting in the preceding months, collecting articles, interviewing drifters and their fans, and trying to secure access to a group I would follow and observe. My hopes thinned out after that night, as ‘Ajib became more and more elusive. Like most drifters we approached, he was on his guard, wary of the improbable duo: a French PhD student and the young Saudi professional who claimed to be researching the dynamics of joyriding. In the eyes of

Joyriding in Riyadh doesn’t look at joyriding as an extreme manifestation of Saudi youth criminality. Rather, it looks at both drifting and its criminalization as embedded in global networks of power and knowledge. The surprising behavior of the police and Ajib’s conduct pointed to an unspoken alliance between law enforcement and law breakers that could only be understood by stepping back and looking at Saudi roads, cars, and male youth in the light of the global importance of Saudi Arabia, since World War II, as a major oil exporter, commodity market, and inventor of traditions. The book explores an idea that will sound both simple and obscure: in Saudi Arabia today, road violence is a form of political violence. And by road violence I mean not only the most visible forms of violence that are road rage or joyriding, but also the structural violence that roads, infrastructure, and the automobile system in general inflict on individuals.

Excerpted from “Joyriding in Riyadh: Oil, Urbanism, and Road Revolt” by Pascal Menoret, © 2014 Cambridge University Press. Copy available on Amazon.com.

many, Rakan and I were spies sent by the local police to infiltrate the drifters. To ‘Ajib, my gaucherie and our retreat after such a minor incident were evidence of our suspiciousness: how could he trust such a poor driver and his unfathomable friend?

Gulf Insider February 2015

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2015 VOLVO XC60 Nick Cooksey tests Volvo’s new SUV. EXTERIOR Despite being around for quite some time now, the recently updated XC60 looks modern-day relevant and stands out on the road. Volvo’s blocky shapes of the past are long gone, and the 2015 model comes in a fresh and elegant form.

INTERIOR As I took to the road, I began to appreciate the noticeably lessened outside noise level, due to both the vehicle’s low roof rails that reduce wind noise, and its sturdy body that buffers most of the road imperfections.

Regardless of all the changes, the new and improved XC60 is still evidently a Volvo, not just because of the prominent six-inch logo, but also the understated and simple Scandinavian-like design.

Overall, the interior has a true quality feel to it, with a nice soft leather finishing, the comfortable bucket-style front seats, a large panoramic sunroof, and a spacious boot.

If I had one complaint, it would be the centre console, which appears a bit too complex. Of course, if you own the car you will quickly get used to all the buttons and so it shouldn’t be a problem, but driving the car for the first time it does seem a bit counterintuitive.

PERFORMANCE To put it in the broadest terms, the XC60 is a really nice car to drive. I must say I was genuinely impressed with the power of this eight-speed transmission model.

The new luxury SUV comes in three driving modes, Performance, Elegance, and Eco, the latter of which I did not try – although, given the affordable fuel prices in Bahrain, perhaps Eco’s fuel-saving technology is not necessarily bound to become the sought-after feature among the local car enthusiasts.

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.

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Motors

Starting Price: BD 13,990

SAFETY Over the years, the previously boxy and safe XC60 has been transformed into a sleek and, well, still safe vehicle, with various additional safety options.

The brand has built its name for safety, and – while these days pretty much all other makes can be considered fairly safe – Volvo clearly strives to stay ahead of the competition in the matter.

One of the interesting features I didn’t have a chance to try (as it was not included in the model I drove) was the 360-degree camera that gives you a bird’s-eye view of your car, so you can monitor the obstructions at any angle. The all-round view is enabled by four concealed fish-eye cameras – one integrated into the front, one integrated in each of the door mirrors, and one fitted above the rear number plate. It is a novel and indeed a tempting idea, but certainly not essential.

2014 VS 2015 Without a doubt, the new model’s looks are better than those of its predecessor’s. As for the specifications, two new 2.0-litre, 4-cylinder engines have been added to the front-wheel-drive models, along with a new eight-speed automatic transmission. On the XC60 T5 FWD, a 240-horsepower turbocharged 2.0-litre engine is offered, while the T6 FWD model adds a supercharger to the turbocharged engine for increased low-end performance and a total of 302 hp.

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

The brand has built its name for safety, and – while these days pretty much all other makes can be considered fairly safe – Volvo clearly strives to stay ahead of the competition in the matter.

Price Comparison Infiniti QX60 From BHD17,500

BMW X4 From BD27,500

Kia Sorento From BD8,000

Gulf Insider February 2015

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WHEN A GULFSTREAM

JUST ISN’T BIG ENOUGH

T

he ultra rich who want to fly in style while surrounded by dozens of friends and colleagues are turning to manufacturers of commercial planes instead of relatively puny private jets to buy massive, personalized luxury liners.

Wired reports that the makers of jumbo jets like the 747 and A380 are happily personalizing their planes to suit the outrageous needs and tastes of princes, oligarchs and the like.

In fact, Airbus is so interested in the business that they conducted a ‘billionaires study,’ which concluded that Middle Eastern oil magnates and Chinese captains of industry just happen to like to travel in groups of more than a dozen.

That means that Gulfstreams or Bombardiers, luxurious though they may be, just won’t cut it.

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The makers of jumbo jets like the 747 and A380 are happily personalizing their planes to suit the outrageous needs and tastes of princes, oligarchs and the like.

Instead, the very same cramped commercial jets the typical traveler dreads being herded into are gutted

Motors

and redecorated with fine dining tables, leather chairs, master bedrooms and entertainment centers.

For those in the market for these luxury liners, money is no option.

And it can’t be. Wired estimates that a privatized Boeing 737 goes for $80 million, the even bigger Boeing 747 goes for $280 million and the massive doubledecker Airbus A380 could be yours for a whopping $300 million.

Wired reports that Airbus has sold

some 170 aircraft since opening its private jet branch in 1997.

Each buyer gets to choose from a wide range of customizations to make the private jet his or her own.

‘They want to take what they are used to in their homes or offices into the air,’ Airbus marketing director David Velupillai told the Sydney Morning Herald. ‘As you can imagine, a billionaire is going to spend a bit of money having a nice office and home, so they want to duplicate that kind of lifestyle in the air.’

They feature dining tables large enough for even the most ambitious family dinners, lush sofas and one is even rumored to have come with a bowling alley.

Which should come as no surprise, considering the average buyer’s buying power.

‘Our market is to billionaires, not millionaires,’ admits Velupillai.

Image : Luthensa Technik Creative Design Boeing ©

Gulf Insider February 2015

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Art

MAYASA SULTAN AL SOWAIDI

D

espite her young age, Mayasa’s award-winning contemporary artwork has been showcased at exhibitions held in several Gulf states, including Bahrain, Kuwait, Oman, and Saudi Arabia. Her latest abstract paintings are a result of collaboration with the established artist Omar Al Rashid and another young painter Marwa Al Khalifa, who shared their experience in acrylic painting techniques while working together in the same studio.

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Art

Gulf Insider February 2015

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Off Topic

DUBAI TOPS LUXURY TRAVEL SURVEY Arabian Travel Market to feature International Luxury Travel Market (ILTM) as YouGov report highlights appeal of MENA region as global luxury hotspot.

L

uxury travel trends will once again be a highlighted feature at Arabian Travel Market (ATM) 2015, with the International Luxury Travel Market (ILTM) Middle East showcase matching luxury-focused exhibitors with travel buyers from around the world looking to discover the very best experiences in the region.

Taking place from 4-7 May 2015 at the Dubai International Convention & Exhibition Centre, the ATM line-up will include a two-day ILTM @ ATM programme with a series of pre-scheduled appointments and dedicated luxury travel focused seminars and panel debates to run on 5-6 May. The Atlantis, The Palm will be the Official Luxury and Leisure Host Hotel for the duration of the four-day event, hosting the ILTM buyer group and international buyers from outside the GCC. “A 2014 YouGov Luxury Travel report for the MENA region showed that out of the 1,000-plus regionally based survey respondents, luxury clearly has a home in the Middle East with Dubai ranked in top spot as the preferred upscale destination,” said Nadege Noblet, Exhibition Manager of Arabian Travel Market, WTM Portfolio, Reed Travel Exhibitions.

For more information on Arabian Travel Market 2015, visit www.arabiantravelmarket.com

UAE SOCIAL MEDIA CONNECTIVITY TYPICALLY = 5 HOURS DAILY FOR MOST USERS

A

dults in the UAE own at least four devices each, bringing the UAE in line with the global average, according to a recent study from Connected Life by TNS, the world’s largest custom market research organisation.

However smartphone device ownership in the UAE is over-indexed, meaning consumers own more smartphones compared to the rest of the world.

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The study also identifies that UAE residents are communicating across Social Media channels up to five hours a day, and are fast to follow trends. In fact the UAE ranks ahead of many ‘mature’ markets, particularly when it comes to device-driven services.

The study also shows UAE users are heavily influenced by what they see and read on digital and social channels, with an increasing number emerging as engaging influencers themselves.

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Last Word

3

Regroup When You Slow Down

Take a break and a power nap if you can.

What you need next is a mini version of your morning ritual and review your goals and the progress you’ve made that morning. Harvard research shows nothing is more motivating than progress. Comparing people who tend to give up easily with people who tend to carry on, researchers find persistent people spend twice as much time thinking about what they have already accomplished, self-affirming that the task is doable and they are capable of it.

VERY SUCCESSFUL PEOPLE USE

W

your day.

1

Morning Ritual

High achievers rise early and almost all have a morning ritual.

They wake before demands are made on them and focus on achieving what is important to them. A valuable part of a morning ritual is it effects your mood and gives a feeling of control. Research comparing students of similar ability finds that the distinguishing feature between those who maintain a strong work ethic in their studies and those who give up is a sense of control.

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2

5

Evenings

When energy is high, focus on creative, challenging work.

When energy is low, do busy work.

Research shows afternoon are best for meetings. Also, research shows that when tasks are dull and you’re feeling distractible, friends can make you more productive (even if they’re not helping).

THE DAILY SCHEDULE hat daily schedule do the pros use? What does science say allows us to be most productive? Here’s a proven schedule you can apply to

4

Afternoons

Important Work First Thing

With No Distractions - Many people arrive at the office and immediately get busy with email and meetings, leaving real work for later in the day. Mistake! Research shows 2.5 to 4 hours after waking is when your brain is sharpest. Don’t waste that time on a conference call or staff meeting.

Early morning is also when you’re most disciplined. The longer people have been awake, the more self-control problems happen. Diets are broken at the evening snack, not at breakfast or in the middle of the morning. Can’t do the work of your choice when the day starts? Get in early or work from home before you head into the office.

Though successful people work long hours, the greats almost all take evenings off to recharge.

According to the American Psychological Association, the most effective stressrelief strategies are exercising or playing sports, praying or attending a religious service, reading, listening to music, spending time with friends or family, getting a massage, going outside for a walk, meditating or doing yoga, and spending time with a creative hobby.

(The least effective strategies are gambling, shopping, smoking, drinking, eating, playing video games, surfing the Internet, and watching TV or movies for more than two hours.) … and finally, go to bed. Studies of world-class performers show they all get enough sleep. Sleep loss cripples thinking, attention, memory, mood, quantitative skills, and logical reasoning ability.

Sadly, we can’t all dictate our own schedule. That’s why there are no specific times listed above. But we can all opt to do some things before or after others.

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