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Contents February 2019 Issue 168

Money and Business

Interview with Mirza Asrar Baig, Founder and CEO of CTM360

Interview with Mehdi Rajan, Brand Director of IWC Schaffhausen

Gulf Insider VAT Special

22 26

Insights from Mubeen Khadir, Head of Tax, Key point

Interview with Sajeev Surendran, Managing Partner of Dhadabhai Advisory

People and Culture

33 37

Careem

54 Facebook Followers

378,030 Simply unparalleled online presence that connects region’s most inspired communities.

World’s Largest Underwater Theme Park

Car News and Reviews

48 52 54

Audi E-Tron 2019 Ram 1500

…and much, much more!

Ferrari 488 GTB

Knowledge is power

Comment...

Publisher & Editor in Chief

- Nicholas C. Cooksey

Editorial Contributors

- Sawsan Abu Omar - Ryan Ernst - Dhanyasree M - Hugh Haskell-Thomas - Nicholas Cortes - Bill Daly

Sales & Business Development

- Charlie Cooksey

- Dhanraj S Layout Designs Admin & Finance

- Nikesh Pola

- Aneesh Mathew Photography

A picture is worth a thousand words.

Distribution Executive

- Mohammed Yousif

Here's last month’s most 'Liked' #BestInBahrain picture posted to our social media. For Advertising Opportunities Call Charlie Cooksey

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The multi-award winning Arabian magazine

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The wizard who believes in making other’s life better

Leading the MoveMent

edX Labs

Chairman, rP Group of Companies

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Bahrain’s Finest innovation & technology taking on Silicon valley

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Celebrating bahrain’s national Day exclusive : interview with the ambassadors in The Kingdom of Bahrain

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News Roundup

Cash incentives offered to private sector employers who hire Saudis The Saudi government has announced that it will offer cash incentives to private sector employers who hire Saudis, according to local media reports. Saudi minister of Labour and Social Development Ahmad Al-Rajhi announced the initiative in Riyadh on Tuesday. Under the programme, the government will offer support for Saudi employees earning between SAR4,000 ($1,066) and SAR10,000 per month, Arab News reported. Al-Rajhi said the programme was one of several initiatives being undertaken in the kingdom to encourage the hiring of nationals in the private sector and increase their participation in the labour market. The kingdom’s Vision 2030 reform strategy aims to reduce local unemployment from 11.6 per cent to 7 per cent and increase women’s participation in the workforce from 22 per cent to 30 per cent. To achieve that, the country has imposed several restrictions on hiring expatriates in certain sectors like retail while also imposing higher fees on foreign nationals. Since November 2012, the kingdom has charged SAR200 ($53) a month for each foreign worker at private sector companies where the number of expatriates exceeds Saudis. This fee increased to SAR300400 ($80-$107) per foreign worker in 2018 and will rise to SAR700-800 ($187-$213) by 2020. More recently, the country has imposed job restrictions in 12 retail roles as part of which those facilities will have to ensure that at least 70 per cent of their staff are Saudi nationals. Local reports have indicated up to 1.22 million jobs held by foreigners could be affected by the new rules.

Saudi: Expat executed in dammam for beating saudi man to death A Pakistani national has been executed in Saudi Arabia’s Dammam for beating to death a Saudi national. Mohammed Bilal allegedly killed Abdullah bin Ali bin Eid al-Harbi by hitting him on his head with an iron pipe following a disagreement between them, the Saudi Press Agency reported. Security authorities arrested the accused, and following an investigation, he was charged with the crime and referred to the general court. The weapon he used was also produced in court as evidence and, after he was found guilty of the charges, he was sentenced to death. The verdict upheld by the appeals court and Supreme Court and a royal order was issued to enforce the death sentence. The execution was carried out in Dammam, in the Eastern Province, the SPA report said.

Gulf Insider February 2019

Saudi: Around 500,000 employees quit labour market in 3 months As many as 554,357 Saudi and expatriate employees have quit the labour market during the fourth quarter of 2018, a section of the local press reported, quoting the General Organization for Social Insurance (GOSI). According to GOSI, there were 9,367,593 employees in the labour market during the last three months of 2017 but their number came down to 8,813,236 in the last quarter of the current year. Riyadh with 3.2 million employees was the largest employer in the Kingdom followed by Makkah which had 1.5 million and the Eastern Province with 1.3 million. Saudis who are actually on the job and are GOSI subscribers are 1.9 million while the expatriates are 7.4 million. GOSI said its Saudi and expatriate male subscribers are 8.5 million while the female subscribers are 810,216. GOSI said there were 7,776 workplace injuries during the last three months which resulted in 16 deaths in the private sector. It said 2,221 suffered injuries after falling down from a height. Other causes of injuries included traffic accidents and excessive exhaustion. As many as 3,372 people are still receiving treatment in various hospitals. A total of 427 Saudi men, 92 women, 7,186 expatriate men and 72 women suffered workplace injuries.

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Events

Day & Night 11th Gulf International Industry Fair 2019

International Brands & Franchise Expo (IBFEX) 2019

When: 5th February 2019 Where: Bahrain International Exhibition & Convention Centre

When: 11th to 13th February 2019 Where: Bahrain International Exhibition & Convention Centre

This event covers key industrial segments including aluminum, steel, alloys, metal, automation, metrology, energy, logistics, manufacturing & industrial security & safety.

The expo will showcase brands from all major sectors in the Middle East seeking B2B and B2G opportunities. This event is going to be the most business focus oriented expo on networking, lead generation, investments, franchising, latest technology, innovation, workshops, and Start-ups.

For more information: +973 17299123 / 17293131

For more information: ibfex.com

Bahrain International Garden Show When: 21st to 24th February 2019 Where: Bahrain International Exhibition & Convention Centre This year, Bahrain International Garden Show will focus on agriculture as an aspirational career choice to meet a growing demand for skilled experts. It is an attractive career choice because of the variety of career options it offers and the skill-set it provides especially in field of agricultural technology and sustainable agricultural practices.

For more information: bigs.com.bh 12

Gulf Insider February 2019

BITEX 2019 When: 26th to 28th February 2019 Where: Bahrain International Exhibition & Convention Centre BITEX, a technology exhibition held alongside with the MEET ICT Conference will bring all ICT companies under one roof to display the latest trends in their field. Hence, the expo aims to strengthen innovative potentials and boost the process of technical restoration of ICT industry.

For more information: bitex.bh

Money & Business

How a Bahrain company is taking on Silicon Valley

Gulf Insider meets Mirza Asrar Baig, founder and CEO of CTM360, to talk about his plans, ambitions, and latest project - EDX Labs.

hat is your ambition?

For world class technologies to be developed in the Arab World and be adopted globally. I want international companies that create tech for the world to start coming from this region. There is a mindset in this part of the world, that it is easier to trade, so why go through all the trouble to invent things? Building technology platforms locally is considered an unrealistic challenge. Previously, there were many times when I was told: â&#x20AC;&#x153;Why are you building it here? Do it in the US where more people will value what you do and adopt itâ&#x20AC;?. Even during my earlier startups, I was repeatedly advised to just brand in the U.S, because we could still sell it here. No, I donâ&#x20AC;&#x2122;t want to just brand

Gulf Insider February 2019

There is a mindset in this part of the world, that it is easier to trade, so why go through all the trouble to invent things? Building technology platforms locally is considered an unrealistic challenge. it here; I want to develop it here too. It is not about making money but more

about making a difference, making an impact. Fortunately, the current wave of tech startups now encouraged by regional governments is helping but almost all of them are either replicas or nearby look-alikes of some global player and intended to serve the regional markets only.

Why did you choose to base your operations in Bahrain? I am in Bahrain because the government here is ahead of the game. The ecosystem still requires a lot of legal frameworks, policies, and procedures, which can provide innovators with the right set of rules and regulations. Bahrain is still at the forefront of this. For example, some countries that are framing their regulations say that the data of the

Money & Business

country cannot be held outside of the country; this then stagnates their technology companies and businesses because they can’t use cloud computing which provides exponential computing power at a very low price. When you take that away from companies you are restricting their potential for growth and advancement. We should rather come up with ways to leverage the cloud. That’s what governments need to do and this will undoubtedly stimulate the technology sector. Bahrain’s government recognized this and embraced it at a very early stage.

So what’s your strategy? Our motto is “We are not here to become machines; we are here to build machines” and we infuse this

message regularly with discussions on how great companies scale to acquire customers across the globe. By leveraging technologies and systems, we are building powerful machines relevant to our space. For example, we are currently acquiring and analyzing large volumes of data from across the internet and will soon publish global statistics in specific areas not done by anyone before; a world-first. I also make it a point of hiring young and fresh minds because they have a passion to prove themselves. Collectively, such actions help build resilience to shrug off critics who question why an international company will use technology invented in Bahrain, or why we dare to think a Bahraini company can compete with Silicon Valley.

We are acquiring data across the globe, and soon we will publish global research statistics in specific areas not done by anyone ever before.

Gulf Insider February 2019

Money & Business

What are the biggest lessons you learned? My biggest lessons are about human beings. How people lack the belief in themselves. You sit there saying you could do this, or do that – so why don’t you? We need to believe in ourselves in order to succeed. Another lesson is that technology right now is being built by putting in too much money, whereas it could be done more efficiently. Yes, it takes time, it takes money, but nowhere near how much most companies spend. If you compare our organization to other international companies, we are operating very inexpensively. There are

companies who spend many millions of dollars doing exactly what we are doing. This means we can do things much more efficiently.

Tell us about the companies you are currently running? We have established 5 companies now. We have CTM360 from which we extracted the EDX Labs component. CTM360 is a cybersecurity department that works in the cloud. Most companies just give you a part of their service in the cloud, not the whole of it because they think it is easier to secure what is not cloudbased. We are comprehensive and serve as an organization’s whole cyber 16

Gulf Insider February 2019

security department. Then we have DMARC360, which provides end-to-end mail delivery, security and intelligence services based on the global framework of DMARC. We have also been Penetration Testing for over 20 years and managed year-long projects while partnering with vendors across the world who brought their consultants to the Middle East. Pentesting is typically done once or twice a year. But that, I think, is not the right way to do it because technology evolves so fast. We have a concept where you can do pentesting every day, and that is PENTEST360.

The biggest challenge is not the people, not the customers, but competitors who will not be happy about our approach. Lastly, we also have MG360 which interacts with banks and merchants to handle their security requirements. We already have contracts with several

banks and are now also expanding to include merchants. We hope to use this platform across the Arab world and beyond. MG360 and PENTEST360 are our own concepts which no one else has done yet. In these two concepts, we are world leaders. All of these technology companies are purely built in-house by EDX Labs, the engine powering each innovation.

What about your latest project, EDX Labs? EDX Labs will help to grow an efficient and economic tech development environment in this region.

It is about looking at any business and bringing in BE3, which is to take out 3 B’s from a business and bring in 3 E’s. You take out branches, brokers, and borders and your business model will certainly grow - but it has to be complimented by bringing in the 3 E’s which are efficiency, economy, and equality. Theory is easy but execution is difficult. We ourselves are doing the same within our own companies. Once achieved, good companies rapidly become great companies.

How do you achieve it? One example is leveraging the cloud. Another is to focus on acquiring and managing Big Data. Through data alone,

Money & Business

EDX Labs is implementing machine learning and artificial intelligence to disrupt the cyber security industry for CTM360. One clear goal is to bring the price down; there are few companies in this line of business right now and their services are expensive. Market dynamics force these vendors to keep their prices high. Ultimately, the biggest challenge will not be people or customers, but competitors who will not be happy about our approach. We want to economize and do things in a manner where we give great value for less price. Overall, EDX Labs will continue to create innovative

The most difficult decision in 2014 was to give up a security system integrator business worth millions to focus on technology development.

technologies that are game-changers to serve global markets.

Your family is involved with you in this have they always been interested in the business? My most difficult decision was in 2014, to give up a security system integrator business worth millions to focus on technology development. My wife Shahnaz was the most supportive in that decision. She encouraged me to take the leap of faith. Frankly, she has been the most important sounding board for my technology ideas and

About EDX Labs EDX Labs is a movement towards innovation through technology with the mission to convert visionary ideas into reality. EDX Labs builds, operates and sustains platforms for the next big original idea.

business strategies. I was also very lucky when it came to my daughter Sana and my son-in-law Arsalan who both gave up their lucrative careers in Dubai to join in my leap of faith. My elder son Abdullah delayed his Master’s degree, and younger Yousef came back from Canada after completing his Bachelor’s Degree, all to join forces to make this dream come true. Maybe because they have all been watching me struggle in developing world-class technologies that it infused the same passion and resilience in them. This definitely gave me a boost to manage the challenge.

CTM360 was recently awarded “Technology Company of the Year” at the MEED Awards in Dubai, UAE. CTM360 was accepted as a full member of the Forum of Incident Response & Security Teams (FIRST). The very first privately held company from Bahrain and the Middle East to be accepted. CTM360 is the only Middle Eastern cyber security company to be rated as one of the top 14 Digital Risk Protection Companies in the world by a Top-Tier Global Research Company.

Gulf Insider February 2019

Money & Business

IWC Schaffhausen From a dream to a global luxury brand Gulf Insider meets Mehdi Rajan, Brand Director of IWC Schaffhausen, about the companyâ&#x20AC;&#x2122;s rich history and global presence.

Gulf Insider February 2019

Money & Business

hat is IWC Schaffhausen?

IWC Schaffhausen was created by an American, Florentine Ariosto Jones, when he left the US for Switzerland with a very bold dream. He wanted to combine the industrial system of watch making with Swiss craftsmanship and expertise. It was by the banks of the river Rhine in the city of Schaffhausen, Switzerland that he founded his international watch company in 1868. IWC Schaffhausen is the dream of an engineer who wanted the best of two worlds.

friends of the brand. For one, it is important to have presence and awareness globally. Every ambassador that we collaborate with is genuinely a friend of the brand. Regionally we have Indian actress Sonam Kapoor, Prince Abdulaziz Bin Turki Al Faisal, Hend Sabri, Raya Abirached and a lot more. All are watch aficionados and engaged with the brand. I think that is what makes these endorsements so successful, because they genuinely love and appreciate the brand. It is something we build organically with them.

IWC Schaffhausen uses celebrity endorsements a lot, why?

IWC Schaffhausen is also associated with conservation projects, tell us about the projects the company is currently involved with.

There are many reasons we collaborate with ambassadors and

We currently have a lot of projects. The Laureus sport for good foundation

The biggest ambition and task we have is to focus on the experience we provide to clients. Buying a watch is an emotional journey, not just a commodity. has the most echo. We are one of the main sponsors of the foundation in helping children overcome handicaps in life through sports. Every year we actively participate in their regional endeavors. We put much support on the local level aside from our global endeavors. We have a special edition watch every year for the foundation, limited to 1500. Part of the proceeds go to the foundation.

We also have partnerships with AMG Petronas Formula 1 team, Fondation Antoine de Saint-ExupĂŠry which fights illiteracy around the world, Charles Darwin foundation in preserving the Galapagos islands, Cousteau Society, and a lot more. The brand is very much aware of its corporate social responsibility and is involved in preservation projects around the world which we take great pride in.

What is the current state of the luxury watch market, and particularly for IWC Schaffhausen? The watch making industry is in a phase of consolidation and rationalization which is effecting all brands. We are focusing on less partners and more partnerships. We want to grow organically, not just spontaneously have presence around the world in multiple malls and such. We are focusing on where we are today and how to improve from there. The biggest ambition and task we have is to focus on the experience we provide to clients. Buying a watch is an emotional journey, not just a commodity. We are putting all our resources, from marketing, to sales, to training, to development, to product, and everyone involved in the company towards experience and customer concentricity.

What are IWC Schaffhausenâ&#x20AC;&#x2122;s future plans? One we are really excited about regionally is re-entering the Saudi market. We have a new boutique opening around spring in Riyadh. We opened a second manufacturial to celebrate the 150th anniversary of the brand. We are also celebrating this important anniversary of the brand by creating a capsule collection of 29 references that pay tribute to our heritage and history. This very limited collection is much sought after in the world.

For more information: IWC Schaffhausen watches can be viewed in Bahrain exclusively at Asia Jewelers, Moda Mall Tel: +973 17431171 Gulf Insider February 2019

Lifestyle

Faberge and AJ Collection

Celebrate Valentine’s Day in Style With Asia Jewellers’ exquisite jewellery and watch collections.

sia Jewellers offers the finest jewellery from the world’s leading jewellery houses. They also offer beautiful timepieces from top brands. If you are looking for that perfect gift for that special person, Asia Jewellers’ may have the choices with their special Valentine’s collection of classic heart shaped designs in diamonds and deep red rubies - from minimalist modern designs to sophisticated fantasy creations. With 12 Asia Jewellers boutiques in Bahrain, locations extend from City Centre Bahrain, Al Aali and Seef malls in the Seef District to boutiques in the Ritz Carlton Hotel and Bahrain’s luxury shopping landmark Moda Mall. Luxurious standalone boutiques include Cartier in Manama and Al Khobar, Saudi Arabia; as well as IWC Schaffhausen, Officine Panerai, Audemars Piguet, Van Cleef & Arpels and Versace in Bahrain.

Call Tel: +973 1753 5344 or #asiajewellers

Gulf Insider February 2019

Paolo Piovan

Faberge and AJ collection

IWC Schaffhausen Portofio Moon Phase edition 150 years

Money & Business

Gulf Insider - Bahrain VAT Special

VAT Insights for Businesses Mubeen Khadir, Head of Tax, Keypoint Group, gives insights and solutions for the common errors that businesses make due to the misinterpretation of VAT.

ith VAT now a reality for all Bahraini businesses – whether or not they meet the staggered registration requirements of the newly renamed National Bureau for Revenue (NBR) – many, if not most of us, have seen multiple examples of errors in tax invoices, inaccurate pricing in supermarkets and misleading advertisements suggesting that goods are VAT-free. Many of these errors – as you would expect with a brand-new law - can be attributed to a misinterpretation

Gulf Insider February 2019

(or lack of knowledge) of VAT. By highlighting some of the most common errors business owners make, we hope to help increase VAT awareness and knowledge and make some of these errors less common.

Setting up your accounting software with incorrect VAT codes:

If you do not set up your chart of accounts with the correct tax codes from the start, the VAT component on sales, purchases and other expenses and payments are going to be processed incorrectly – and the resulting

figures you use on your VAT return will be wrong. Mapping all your transactions to determine the correct VAT treatment for each transaction and getting a VAT consultant to vet – or (even better) guide you in setting up - your tax codes is key to being able to calculate, pay and report VAT accurately.

Recovering VAT incurred on purchases without possessing a valid (tax) invoice: Bahrain has

made tax evasion a criminal offence, punishable by significant fines and lengthy jail terms. Recovering VAT

Money & Business

you have incurred on your purchases without the necessary documentation could make you liable for penalties.

Issuing incorrect (tax) invoices, debit notes and credit notes: In

a VAT environment, the tax invoice or simplified invoice is always the first document a supplier needs to issue. Subsequent adjustments will require the supplier to issue a debit note or a credit note. The Bahrain VAT executive regulations prescribe specific requirements for each of these documents. All of the prescribed requirements need to be met for a document to be considered

valid – invalid documents can result in penalties.

Recovering VAT: VAT is generally claimable on expenses you incur in the course of making your taxable supplies. However, there are items which are specifically blocked or subject to apportionment rules so you cannot recover all of the VAT incurred on purchases. Failing to report or charge VAT on the non-trade sale of business assets: If you are registered for VAT,

you will also be required to account for VAT on non-trade sales, such as the sale of a company vehicle, fixed assets, or even scrap or salvage.

Not apportioning your VAT recovery on mixed use assets and expenses incurred for both private and business purposes: The VAT recovery on these purchases will need to be apportioned based on the expected business use. For example, with passenger cars, during a tax audit you will need to be able to justify to the NBR the basis on which you have calculated the business use.

Purchases with no VAT amounts:

If you are registered for VAT, you will also be required to account for VAT on non-trade sales, such as the sale of a company vehicle, fixed assets, or even scrap or salvage.

Bahrain has exempted and zero-rated a wide range of Items such as basic foods, commercial and residential rent, education and basic health services. In addition, the payment of salary and wages is not be subject to VAT at all. As a result, there is no VAT to recover (as you haven’t incurred any).

Telephone bills: VAT is particularly

complicated for some economic sectors – telecoms is one of them. Always check your telephone bills to check that you have not been charged VAT for services received before 1 January 2019 – or that you have not been charged Bahrain VAT on global roaming charges.

Entertainment expenses, HR benefits and gift rules: Seek

the advice of a VAT consultant before recovering VAT incurred on entertainment costs such as meals, HR benefits for employees, or gifts Gulf Insider February 2019

Money & Business

Gulf Insider - Bahrain VAT Special for clients. There are special rules and restrictions in relation to these expenses.

The sale or purchase of vouchers:

Generally speaking, supply of vouchers with a face-value does not attract VAT. For these vouchers, the VAT should only be accounted for when the voucher is redeemed.

The purchase of second-hand goods: If you purchase a second-hand

item from a VAT-registered business, you may claim the input tax credit on your next VAT return. However, if you purchase second-hand goods from a private seller or a non-registered business, VAT cannot be charged – and so cannot be recovered.

Discounts: VAT should be accounted for based on the total payment (technically known as the consideration) received. If you provide a discount, the VAT is calculated based on the discounted consideration. Similarly, 24

Gulf Insider February 2019

VAT professionals should have a much better understanding of the accounting behind business expense scenarios than most business owners. with ‘two for one’ or ‘buy 10, get 1 free’ offers, VAT should only be calculated based on the total consideration received. Charging VAT for the free item is incorrect – and could expose you to fines and penalties.

Displaying prices inclusive of VAT: Bahrain’s VAT legislation requires

displayed prices to be inclusive of VAT (this is especially important in a B2C retail context such as a supermarket). A restaurant menu that states at the bottom ‘the prices are subject to (or exclusive of) VAT’ or a supermarket shelf price that does not include VAT in the price displayed may result in penalties being applied by the NBR. Developing good record keeping habits and setting up your systems to accurately record your transactions will go a long way towards avoiding many of these mistakes. However, the best way to ensure that you are accounting for VAT correctly, issuing the correct documentation, preparing your VAT returns correctly and aligning your processes with leading practice is to engage the services of a VAT specialist advisor. VAT professionals should have a much better understanding of the accounting behind business expense scenarios than most business owners – so it makes excellent sense to engage a professional to do it for you!

Money & Business

Gulf Insider - Bahrain VAT Special

The Impact of

VAT

Gulf Insider talks to Mr Sajeev Surendran, Managing Partner of Dadabhai Advisory, about the implementation of VAT in Bahrain.

hat protections will private businesses have against miscalculations made by VAT inspectors?

While the chances of miscalculations by inspectors is very rare, the best protection for any private business against such cases is a certified tax expert who prioritizes the best interests of the business and will be able to notice any miscalculations. The team at Dadabhai Advisory prides itself in maintaining the highest levels of service to its clients in this regard.

As many businesses in Bahrain operate on tight margins, how can a business be expected to pay VAT for an invoiced amount that hasn’t yet been paid by the client? A comprehensive impact assessment will have to be performed by the business in order to understand how VAT will affect them in regards to their payments both to suppliers and the authorities. Based on the results of the assessment, the business will have to establish solid financial discipline in its organization to anticipate any adverse liquidity positions that it may fall into.

How money raised from VAT will be spent? Ideally, the government will be using the money collected by VAT to improve the existing public infrastructure present in the country, as well as invest in projects that will provide sustainable returns to the country’s economy.

Which businesses will be most impacted and which businesses least – by the introduction of VAT? VAT will affect all business, however industries such as Real Estate, Healthcare, and Education will be least affected. While it is difficult to go into detail, our tax experts are able to effectively assess the actual impact of VAT on any business operating across multiple industries. Dadabhai Advisory will soon be releasing a comprehensive series of books on VAT and its impact on various aspects of the economy and businesses. 26

Gulf Insider February 2019

Money & Business

What do you expect will be both the most positive and negative effects of VAT for Bahrain? The most positive effects on Bahrain will be the influx of revenue generated by the economy that will help finance the Government’s requirements. However, the negative effects will be felt by final customers who will effectively be paying more for products and services that they used to obtain for a lower price.

and all business eventually have to be registered, the dynamics of the market will even out and ensure that the conditions are at a similar level to what they were before the introduction of VAT. Dadabhai Advisory is able to assist businesses in navigating the initial rough stages of VAT and ensure that they will be in strong positions for when the market has finally adjusted to it.

How will VAT affect Bahrain’s cost of living and inflation? With the introduction of VAT at 5% in the Kingdom of Bahrain, there will be impact on the cost of living and inflation as prices will be raised across the economy and individuals will struggle to meet some of them as easily as before the implementation of VAT, however employers are expected to take this into account when determining increments for working members of the society.

Once VAT is fully operational do you expect the rate, currently at 5% to keep increasing as has happened in other countries that introduced the tax? In the near future, we do not expect the rate to change until the market has comfortably adapted to the current rate, however as with all developing/ developed economies, economic growth is directly interlinked with tax rates, and hence to promote more growth, tax rates will have to rise in order to maintain sustainability.

The most positive effects on Bahrain will be the influx of revenue generated by the economy that will help finance the Government’s requirements.

Several Companies have complained that they are at a commercial disadvantage by having to charge VAT when their smaller rivals are not yet required to do so. For Example, a gold company told us their sales dropped substantially as their customers have moved to smaller rivals who are able to undercut their prices. What advice would you give on this? Undercutting has always been prevalent in Bahrain’s market, both now and before VAT. At some point in the supply chain all business both large and small are expected to pay VAT, and hence it is ultimately up to the business whether to charge it to their customers or not. As the market normalizes to VAT

Dadabhai Advisory WLL, is an Accounting and Advisory service provider in the Kingdom of Bahrain, set up to provide professional services in Accounting, Taxation (VAT), Financial Management, Corporate Policies and Business Process Re-engineering, Transaction Services, Internal Audit, IT Control Services and other management services for the SME and Corporate Clients. For more information, contact +973 1720 5275.

Gulf Insider February 2019

Money & Business

Diversification is working … but more needs to be done Steen Jakobsen, Saxo Bank’s Chief Investment Officer, says higher oil prices are improving the short-term growth outlook for Bahrain/GCC but external factors will pressure the region’s fiscal outlook in 2019.

he governments of Bahrain and the wider GCC region are making good progress in the creation of revenue separate from the oil-based economy, especially with the introduction of VAT, but ignoring the early signs of a global slowdown could be costly to the region, said Steen Jakobsen, Chief Investment Officer of Saxo Bank, the leading fintech specialist focused on multi-asset trading and investing. Speaking at the Al Dana Ferguson Forum 2018 in Bahrain, Jakobsen said: “The recent high oil prices have been positive for the region as it has allowed GCC governments extra time to put in place strong structures for creating

Gulf Insider February 2019

more revenue away from the petroleum economy. This urgency is well-placed, but more needs to be done to diversify GCC economies as I expect that the region will face significant economic headwinds in the next 12 months amongst an increasingly fractious global geopolitical outlook.” Jakobsen outlined his macroeconomic forecast for the GCC region at the Forum and cautioned that external factors could have a negative impact economically on the region in the next year. He said the Middle East remains very dependent on global external factors, especially US policy. The potential for rising US interest rates will drive the US dollar higher, as well as

lead to a higher cost of capital which will also impact the GCC. Meanwhile increased political uncertainty surrounding the trade dispute between the US and China, as well as the growing anti-globalisation sentiment is likely to slow the US and global economy as we enter 2019. “While the geopolitical climate is a significant headwind for regional growth, there are some good economic signals coming out of the GCC region. The introduction of VAT and increasing potential tax revenue from almost zero should be a net positive for the country rating, but it subsequently creates some issues in increasing price levels at a time of a global slowdown, as well as maintaining and attracting expat professionals to the region,” said Jakobsen. He said: “What I have been pleased to see most though is a newfound realism that the region needs to create credible revenue outside the petroleum economy. It’s clear to me that the last oil price crisis did more for structural changes in the region than anything I have seen in my 20-plus years of travelling to the region. Jakobsen was also positive about the growth of SMEs in the region: “The strong support for growing SMEs and reducing the dependency on state-owned enterprises is important structural change that should lead to more competition and stronger growth. Jakobsen concluded the presentation at the Forum by forecasting growth in the GCC region of slightly above the 1.9/2.0 percent seen in 2018, but with a significant downside risk of around 2.25 percent.

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News Roundup

Bahrain: Fake doctor jailed for cheating bank A fake doctor who deceived a bank to obtain loans for a car purchase was handed down 10 years of imprisonment by the First High Criminal Court. According to court details, the accused, an Arab national, teamed up with another man (the second accused) to forge papers showing that he was a doctor and was employed by a leading hospital in the Kingdom. The accused approached the bank’s manager and requested him for a loan to buy a Land Cruiser. “He said he was working as a doctor with a leading hospital at a salary of BD3,000 a month. He also produced ‘all relevant papers to obtain the loans’.” The man successfully deceived the bank staff and bought a Land Cruiser, which he drove to Jordan and sold there with the help of the second accused. A few months after issuing the loans, the bank staff realized that they were cheated as the hospital confirmed that it has never employed the accused.

Bahrain: Second best country in the world for expats Bahrain is the second best country in the world for expats to work according to a new survey from HSBC. The Middle East nation took over the UK, Switzerland or even the United States in terms of career opportunities, progression and fulfilment. Bahrain has surpassed its previous ranking in the 2018 HSBC Expat Explorer Survey as the top destination in the Middle East region for individuals from across the world to resettle and enjoy an exceptional quality of life. Based on responses from 22,318 expats working in 163 countries, the report measured those destinations deemed best for international workers along a The top ten is as series of metrics — such as work/life balance, follows: earnings prospects and career development. It 1. Germany found that select nations in the Europe, Middle 2. Bahrain East and Africa (EMEA) region scored most 3. UK highly. 4. UAE Bahrain is the only MENA nation in the 5. Switzerland 2018 HSBC survey rankings to have improved 6. Sweden its position among the top 10 destinations 7. Singapore considered. The survey revealed that the 8. USA top five countries for expat workers were all 9. Canada outside North America and Asia. The number 10. Hong Kong one spot belongs to Germany.

New oil field to be explored in the North of Bahrain A Memorandum of Understanding (MoU) was signed between the National Oil and Gas Authority of the Kingdom of Bahrain (NOGA) and Eni to document the intention to pursue petroleum exploration of Block 1 which is situated in the northern territorial waters of the Kingdom with water depth ranging from 10 metres up to 70 metres. This follows the successful exploration at Khalij Al Bahrain Basin, which yielded Bahrain’s largest oil and gas find. 30

Gulf Insider February 2019

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The Bahrain based lifestyle and luxury magazine with style and editorial flair that is enjoyed by affluent customers both Arab and Expats. Online edition at www.Bahrain-Confidential.com

194 The Best in Bahrain

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People & Culture

Bahrain to Launch World’s Largest Underwater Theme Park Bahrain announces the launch of the world’s largest underwater theme park, covering an area of over 100,000 square meters.

he eco-friendly project will be undertaken in partnership with the Supreme Council for Environment, Bahrain Tourism and Exhibitions Authority (BTEA) and the private sector. The dive site will have a 70-meter long decommissioned Boeing 747 as its centerpiece, the largest aircraft ever to be submerged. The site will provide an exceptional dive experience as it will include several structures in addition to the aircraft, such as a replica of a traditional Bahraini pearl merchant’s house, artificial coral reefs and other sculptures fabricated from eco-friendly material, all submerged to provide a safe haven

The dive site will have a 70-meter long decommissioned Boeing 747 as its centerpiece, the largest aircraft ever to be submerged.

for coral reef growth and a habitat for marine life. The eco-friendly project will become an international tourist attraction, given its large area, location and unique experience for diving enthusiasts. The dive site will also provide researchers with rich information and data on marine ecology and biology and will be a major boost to the Kingdom’s eco-tourism sector. The underwater dive site will be launched in the coming weeks in partnership with the private sector, local dive companies and clubs and will open to diving enthusiasts and visitors before the summer of 2019.

Gulf Insider February 2019

News Roundup

Around 40,000 driver licenses issued to Saudi women More than 40,000 driver licenses have been issued to women in Saudi Arabia since the ban on women driving was lifted on June 24, Director General of Traffic Department Maj. Gen. Muhammad Al-Bassami told Okaz. “The experience of women driving in the Kingdom is considered pioneering and exemplary,” he added Tuesday after meeting directors of traffic departments. He pointed out that the women driving schools partners with us in implementing the international standard that we seek to apply in those schools and applying quality in the issuance of licenses for women. “We have plans to create 14 driving schools for women in different regions to help ease the waiting list for women to get the license,” he said. “We have opened 22 centres to replace international valid licenses,” he added. On the possibility of revising the fine of the violation of mobile use during driving, which is SR500, he replied: “We are an executive.” As for the date of implementing the traffic points system, he explained that the Supreme Order guarantees a two-year period for driving schools.

Gulf Insider February 2019

Bahrain: MPs vote against vat on electricity, water services The MPs said that the government’s decision to apply VAT on EWA services would overburden the citizens who are already struggling to adjust with the increased expenses. They unanimously voted against the decision. The EWA, earlier this week had announced that electricity and water services would be subjected to VAT. The announcement confirmed that both electricity and water charges will be charged at a standard 5% applicable from January 2019. The move was heavily scrutinised with many calling for the decision to be overturned. MP Mohammed Buhamood said that applying VAT on electricity and water charges places a huge burden on the public. He said that EWA services must be exempted from VAT.

Saudi aims “To be among World’s Top 10 Entertainment Destinations” Saudi Arabia said it expects billions of dollars to be pumped into a nascent statebacked entertainment sector and is eyeing dozens of Western acts, including an exhibition NBA basketball game and a Spanish-style running of the bulls. The kingdom is trying to shake off its ultra-conservative image in a drive to keep tourist dollars at home, lure foreign visitors, create jobs for young Saudis, and improve the quality of life in a country where cinemas and public concerts were banned until recently. The government has put on Arab and Western performances, including a Black Eyed Peas concert last month, that were once unimaginable in a country where bearded religious police patrolled the streets with sticks to guard against public immorality like singing and dancing. At the launch of the 2019 entertainment calendar, Turki al-Sheikh, chairman of the General Entertainment Authority (GEA), listed dozens of events the kingdom hopes to host this year, including auto races, magic shows and theatrical performances. Al-Sheikh said the kingdom aims to become among the top 10 global entertainment destinations and in the top four in Asia, but provided no timeline and few concrete figures for his targets.

News Roundup

Bahrain welcomes around 10.3 million tourists in 2018

Indian workers migrating to Gulf decline by 21% Indian blue collar workers migrating to various Gulf countries for jobs declined by 21% during January-November 2018, compared to the previous year, according to latest data available with India’s external affairs ministry. The total number of Indian migrants cleared by the emigration department of India’s foreign affairs ministry to the Gulf countries for the first eleven months of 2018 stood at about 300,000. Emigration clearance is required for only those job applicants whose educational qualifications are Class 10th failed or below and therefore is not an exact reflection of the overall trend in Indians moving to Gulf countries on employment. Thousands of Indians with higher and professional educational qualifications who are moving to UAE and other Gulf countries are not captured in this data. All top five destination countries in the Gulf such as UAE, Saudi Arabia, Kuwait and Oman have seen a decline in new workers coming from India last year. UAE was the top destination for Indian workers who emigrated to the Gulf countries last year, accounting for about 110,000 of the total workers, followed by Saudi Arabia (about 68,000), Kuwait (about 59,000) and Oman (about 39,000). Declining work opportunities, lower wages compared to the previous years and tightening of the procedures for sending workers abroad by the Indian government are said to be reasons for the fall in the migration of workers to the Gulf countries, considered to be dream destinations by millions of skilled and unskilled job aspirants from India. Labourers, masons, carpenters and technicians were amongst the top category of Indian workers who have migrated to the Gulf countries last year. Uttar Pradesh, Bihar, Tamil Nadu, Rajasthan and West Bengal were the top five Indian states, accounting for a major share of blue-collar workers migrating to the Gulf region in 2018. Among the educated and professionally qualified employees from India, nurses constitute amongst the large chunk of Indians working in the Middle East. In the last five year period, 2014 accounted for the highest number of workers’ migration from India to various Gulf countries, at about 780,000.

Bahrain welcomed around 10.3 million tourists in 2018, according to the Ministry of Industry, Commerce and Tourism. Inbound tourism increased by 6% in 2018 when compared to 2017. The latest statistics released by the Ministry of Industry, Commerce and Tourism and Bahrain Tourism and Exhibitions Authority (BTEA) showed a strong increase in the tourism numbers in Bahrain. According to the statistics, the total nights spent by tourists in Bahrain in 2018 was 9.8 million, marking a 22.3pc increase in the number of nights spent from 2017. In October, it was reported 9.1 million tourists visited Bahrain during the first nine months of 2018, a 5.7 increase in tourism numbers from 2017 during the same period. Apart from the increase in numbers, Bahrain has taken steps such as the launch of Vatel Hotel and Tourism Business School in Bahrain. With an aim to create fully-fledged professionals in the sector, the BTEA launched the hospitality management college in October. The international college will train the national workforce in the hospitality sector as well as provide them with a wide array of exciting career opportunities. According to the Ministry, the tourism sector’s contribution to the GDP has been rising steadily. As of 2018, the tourism sector’s contribution to GDP was close to 7%.

Gulf Insider February 2019

Society

Philippines National Basket Ball Team Press Conference and Meet & Greet at The K Hotel.

Capital Club - Media Lunch

Gulf Insider February 2019

Jotun - Launch of Colour Trends at Wyndham Grand Manama.

People & Culture

Safe with Careem Careem provides safety measures to protect both customers and captains.

afety and security are at the top of the agenda within Careem. A dedicated division within the company is focused on identifying all areas of vulnerability for both customers and captains and creating ways to identify and best prevent any form of danger to either party. With the team director and immediate support for the UAE, based in Careem Headquarters in Dubai, each and every market is served by a local on the ground team to support the market needs. In core markets where safety is a perceived higher risk, Careem invests some $1.3million a year in ensuring captains whilst they are driving customers. Careem protects customers with inride insurance so that in the unfortunate event of any form of accident or issue related to a captain, the customer will be compensated. To ensure a standardized level of safe driving, all captains driving on the platform undergo rigorous background checks, onboarding, and refresher training on how to drive safely and keep their cars road fit for the road. Their vehicles receive a standardized

assessment checking against core mechanical, functional and interior measures- from seatbelts, to tire thread to indicators and lights, cars must pass this test to be on the platform. Careem provides extra motivation for following best practices. Captains are also not permitted to drive more than 12 hours shifts and encouraged to keep themselves physically fit so that they can be alert always. Before a ride begins, the customer can be sure that the vehicle picking them up is driven by the captain displayed in the app. This is visible to both the customer and Careem. The customer’s identification is only disclosed at their will. A customer will be anonymous to a captain until the point that they wish to contact each other. In this instance, the option to “mask a call” when contacting a captain allows a customer to protect their profile and contact number. By adopting best practice for in ride safety, Careem encourages customers and captains to buckle up with their seat belt (cars) and wear helmets (bikes) which are official stipulations for a captain to adhere to. In the event of an incident occurring

during the ride, an emergency hotline is in place for immediate assistance of the customer or captain. When a car breaks down, roadside assistance services are in place to attend the situation and a new captain is sent to the passenger to take them to their end destination.

About Careem Careem is the leading technology platform in the greater Middle East. A pioneer of the region’s ride-hailing economy, Careem is expanding services across its platform to include mass transportation, delivery and payments. Careem’s mission is to simplify and improve the lives of people and build a lasting institution that inspires. Established in July 2012, Careem operates in more than 120 cities across 15 countries and has created more than one million job opportunities in the region.

Gulf Insider February 2019

News Roundup

Oman: More than 65% drop in expat workers entering the country Oman has seen a more than 65% drop in the number of Indian expat workers coming into the country as the ban on foreign labour continues, national daily Times of Oman has reported, citing data from the Indian Ministry of External Affairs. The number of Indians seeking work in Oman through the online e-migrate service decreased from 105,513 in 2010 to 36,037 in 2018. The 65.84% drop in Indian migrants comes the Omani government continues in its efforts to employ more locals over expats. The new Omanisation laws aim to increase the number of locals in the workforce and decrease the dependency on expat labour. Oman has recently introduced a job center that will identify eligible locals to fill in positions that were previously held by foreigners. The country has also banned expats from working in certain positions in higher education, such as director of admissions and registration department, director of student affairs, director of quality assurance and director of the career guidance department. These efforts helped increase the percentage of Omanis working in the private sector. National Center for Statistics and Information (NCSI) data revealed that Indians make up the biggest expat community in Oman, with 662,360 members, of which more than 80% work in the construction sector.

Gulf Insider February 2019

Saudi women granted full control over childbirth procedures The Saudi health ministry has granted pregnant women the right to sign and approve any operation related to giving birth without the consent of a guardian, the ministry posted on its Twitter account. The pregnant women are also entitled to know the state of pregnancy, the gestational age and the expected date of birth, as well as the expected method of delivery (natural, caesarean, assisted). The ministry pointed out that it is within pregnant women’s rights not to cut the perineum at birth unless it is necessary and after oral consent. They also have the right to access to information and the possibility to choose the details of natural birth from a wide range of options. The ministry posted that pregnant women have the right to have a companion at the time of birth, whether from family members or friends. However, this right is possible only if the delivery room permits it and the presence of the companion does not violate the privacy of others who are giving birth, the ministry added. Pregnant women also have the right to freedom of movement during labour, unless it is not allowed by their health condition or the condition of their foetus. The ministry’s post was enthusiastically welcomed by social media users as a “great step forward for women’s rights” in the country.

News Roundup

Dubai residential property market values decline annually

Death of Saudi sisters in New York found to be suicide Two Saudi sisters whose bodies were found taped together on the banks of a New York river committed suicide, the city’s medical examiner said on Tuesday. Rotana Farea, 22, and her sister Tala, 16, were found beside the Hudson River in late October with no visible signs of trauma, dressed all in black with fur-trimmed coat collars. They were tied together at the ankles and waist by duct tape. “My office determined that the death of the Farea sisters was the result of suicide, in which the young women bound themselves together before descending into the Hudson River,” Chief Medical Examiner Barbara Sampson said. After their deaths, a police officer appeared to confirm that the sisters had applied for asylum, but did not provide further detail. They had run away several times from their family’s home in Virginia, where they had not lived since the end of 2017. The sisters had been placed in a shelter but left Virginia in August and set out for New York. There, they stayed in several different upscale hotels and maxed out a credit card, according to an NYPD spokesman quoted by US media. US media quoted police as saying the sisters had indicated that they would rather harm themselves than return to Saudi Arabia.

Dubai’s residential property market displayed an overall 11.1% fall in capital values in 2018, with quarterly declines of 3.1%, according to a fourth-quarter report from ValuStrat. According to the report, the downward trend resulted in 24.7 percent citywide capital value loss since it peaked in mid-2014. On an annual basis, 5 of 26 locations saw single-digit declines, including villas in Palm Jumeirah, Emirates Hills and Al Furjan and apartments in Dubai Marina and Jumeirah Village Circle. Capital values in certain other locations – including the Meadows, Jumeirah Islands, International City, Discovery Gardens, Business Bay and The Greens – fell more than 15% annually. Additionally, an estimated 19,367 apartments and villas – or 43% of the total supply as expected at the start of 2018 – have been completed. Of this total, 9,454 units were mainly located in Dubailand and Jumeirah Village Circle. Residential asking rents were found to have dipped 8.6% annually. On a quarterly basis, however, rents were found to have fallen 1.2%. Compared to the same period last year, listed rents were down 8.9% for apartments and 6.9% for villas. Office transaction volumes, for their part, fell 11.9% compared to the previous quarter, while overall transacted office prices were 9% lower than last year. There was, however, a notable increase of 11% quarter-on-quarter. In the hospitality sector, Dubai’s room count stood at 89,091 as of October, with 24,418 hotel apartments. An additional 2,713 rooms were added during Q4. Citywide, occupancy rates between January and October were 75%, 2% lower than when compared to the same period last year. Revenue per available room (RevPar) declined 7.7%, while average daily rates were 5.5% year-on-year.

Gulf Insider February 2019

News Roundup

Saudi private sector growth: The slowest in nine years

Saudi: Women to start receiving divorce notice by SMS The Ministry of Justice started implementing the new system to notify married women through SMS about a change in their social status in case of their divorce being granted. A new Justice Ministry regulation makes it mandatory for a woman to be notified by text message when a court issues her husband’s divorce decree, Saudi lawyer Nisreen al-Ghamdi said. In the new system, women in the Kingdom will be able to have access to documents related to the termination of their marriage contracts through the ministry’s e-portal, the Saudi Press Agency reported. The new initiative stipulates that the courts will notify the women immediately via text message to their phone numbers registered through the Absher system when a divorce decree is issued by a court. The text message will inform the divorcee of the number of the divorce document and the court that issued it. The ministry stated that the courts across the Kingdom have received a circular to enforce this directive so as to provide beneficiaries assistance in preserving their rights. This will also promote the digital transformation in the ministry with more services being made available to the citizen. The ministry added that a woman could also inquire about her marital status through the ministry’s portal Najiz (https://najiz.moj.gov.sa). The concerned woman can also personally contact the women’s section of the court or at the office of the president of the court to receive a copy of the document. 40

Gulf Insider February 2019

According to the Emirates NBD Purchasing Managers’ Index (PMI), Saudi Arabia’s non-oil private sector grew at its slowest rate in nine years last year. The headline PMI, which collects data from a monthly poll of business conditions in the private sector, averaged 53.8 during last year compared to an annual average of 58.0 over the previous eight years. In December, the PMI fell to 54.5 from a year-high of 55.2 in November, with the rate of job creation slipping to a 20-month low. Despite easing since November, output growth in December remained quicker than the average over 2018 as a whole. The survey indicated that business activity had risen in part due to stronger demand, with companies noting a further – albeit slightly slower – increase in inflows of new business. New export orders were up for a third straight month but only fractionally, indicating that the pick-up in demand was centred on the domestic market. While underlying market conditions were reported to have improved, the survey continued to point to strong competitive pressures across the private sector and, on average, firms reduced selling prices in order to help support sales. Elsewhere, latest data showed the continuation of a weak rate of employment growth across the non-oil private sector. December’s increase in staffing numbers was, in fact, the smallest since April 2017, with the vast majority of companies keeping headcounts unchanged from the month before.

News Roundup

Saudi to increase salaries by 5-6% this year

Saudi plans its own space agency; King’s son named as Chairman Saudi Arabia has announced plans to set up its own space agency, with King Salman’s son named as its chairman. As part of a series of royal decrees to reshape the government, King Salman announced Prince Sultan bin Salman bin Abdulaziz Al Saud as chairman of the board of directors of the Saudi Space Agency at the rank of minister. Prince Salman was the first Arab and Muslim to travel into space in 1985, helping to deploy a satellite for the Arab Satellite Communications Organisation with NASA. The announcement comes just weeks after two Saudi-designed satellites were launched into space from China. The satellites, which were developed by the King Abdulaziz City for Science and Technology, will be used to provide high-resolution images of the planet’s surface from low earth orbits, help with urban planning, monitor movements and changes on the earth’s surface, and provide government agencies with services, in particular, high-resolution images. Known as Sat 5a and Saudi Sat 5b, the satellites were launched from Jiuquan Satellite Launch Centre. The launch of the two new satellites comes as part of the Kingdom Vision 2030 aiming to localise strategic technologies, maximize local content and empower the Saudi youths gain knowledge of advanced technologies in the development and manufacture of satellites.

Saudi Arabia is planning to increase wages of mid-level to senior jobs this year on an average of 5-6% in line with current economic conditions, according to a salary guide by GCCbased recruitment consultancy Cooper Fitch. The guide also expects a 15% rise in women in the workforce over the next 12 months. The kingdom’s biggest driver in the coming year, however, is to balance the employment level for nationals and expats, the guide said. Moreover, Cooper Fitch estimates 4-5% GDP growth in Saudi based on the average price of oil at $71 in 2018, as well as various factors contributing to the diversification of the kingdom’s economy. While the International Monetary Fund (IMF) predicts a lower GDP growth of circa 3%, based on a projected increase in crude oil production, Cooper Fitch expects growth will be higher due to a rise in non-oil activities. The non-oil growth will be in line with Vision 2030, and will see the continued boost of projects such as Red sea, Neom, Riyadh Gate and others, with Saudi being among the most promising economic markets globally. Another driver for growth will rest within privatisation and public-private partnerships, while the implementation of VAT has helped stabilise Saudi’s non-oil-based revenue. It has also created new employment opportunities in the tax advisory and tax consulting space.

Gulf Insider February 2019

Society

Gulf Hotel Celebrates 50th Anniversary.

Gulf Insider February 2019

Price giving ceremony for the winners of Augusta tournament at Royal Golf Club.

CAR News

& reviews

Ferrari 488 GTB

Audi e-Tron

2019 Ram 1500

Toyotaâ&#x20AC;&#x2122;s all-new Supra

Bahrain Car Market News Behbehani will pay your VAT on a new car Buy a 2019 Audi or Dodge now and Behbehani will pay your VAT! With 5 years manufacturer’s warranty, service package and roadside assistance

Audi Centre Bahrain, Behbehani Brothers w.l.l. Call: +973 1745 9933

Al Haddad introduces Mercedes-Benz first aid for minor vehicle damage. Minor damages to your car are annoying and regardless of how careful you are being, they can often happen. Al Haddad Motors introduces SMART Repairs at Mercedes-Benz to repair those minor damages. The Mercedes-Benz SMART Repairs uses the very latest state-ofthe-art repair technology to fix several types of minor damages that are caused by wear and tear, reactions to the atmosphere/nature, and small accidents. Through the Mercedes-Benz Repair Systems you are able to prolong your Mercedes-Benz durability as minor issues are repaired as soon as they occur minimizing the probability of them developing into major issues.

Call - Al Haddad Motors, Call: +973 1778 5454

Toyota’s all-new Supra EK. Kanoo introduces Zero VAT service Ebrahim K. Kanoo, the exclusive distributor of Toyota and Lexus vehicles in Bahrain, has started the new year with a new service campaign for customers to save on Value Added Tax (VAT) at any of the its service centres in the Kingdom.

Ebrahim K. Kanoo B.S.C (c) Call: +973 1726 2262

Gulf Insider February 2019

Toyota premiered its much-anticipated all-new Supra recently at the 2019 North American International Auto Show (NAIAS) in Detroit. It is the first global model of GAZOO Racing’s (GR) sports car series. Ever since first competing in Germany’s 24 Hours of Nürburgring endurance race in 2007, GR has been developing its cars and people through its motorsports activities with the goal of making “ever-better cars.” The knowledge and expertise it has built up over the years have been funneled into bringing the Supra back to life in the form of the GR Supra as a car that people the world over will find fun to drive.

Car Bahrain

Volkswagen 7 seater Teramont As the newest and biggest member of the Volkswagen lineup, the full-size Teramont SUV offers family-ready passenger and cargo volume, as well as everyday usability and utility. An innovative 1-step folding mechanism for the second row seats offers room for effortless third row entry and exit, even with child seats in place, and does not compromise on space and comfort. Passive safety features include the three-point seatbelts for all seats, side-curtain head-protection airbags that cover all three rows, and a reinforced safety-cage construction. From front to back, all these technologies work together to help keep families safe.

Volkswagen Centre Bahrain , Call: +973 17459977

Infiniti Bahrain Announces an SUV for the Electrified Era

The new concept represents INFINITIâ&#x20AC;&#x2122;s plans for high-performance electrified vehicles, offering complete range confidence while signaling a new era for INFINITI design enabled by new technology. The development of new electric vehicle platforms enables the formation of spacious, lounge-like interiors. In the case of the QX Inspiration concept, the cabin has been hand-crafted using traditional techniques and a choice of materials inspired by a subtle Japanese sensuality. New interior technology follows the Japanese hospitality principle of omotenashi, creating a welcoming environment while assisting drivers and connecting occupants to the world around them.

Infiniti Bahrain YK Almoayyed- Infiniti, Call: +973 1773 1773

Gulf Insider February 2019

Car Bahrain

Bentley Continental Gt Convertible Bentley is introducing the all-new Continental GT Convertible. Designed, engineered and handcrafted in Britain – and representing all Bentley knows about creating the world’s most stylish and elegant Grand Tourers. Elegant and sculptural exterior styling harmonises perfectly with an exquisite handcrafted cabin, featuring the highest quality leathers and sustainably sourced veneers. The tailored convertible roof can be deployed or stowed in just 19 seconds, with the car travelling at speeds of up to 30 mph (50 km/h). This transforms the Continental GT Convertible from a luxurious coupe into an open-top Grand Tourer at the touch of a button. Seven different fabric hood colours are available, including an authentic tweed finish for the first time.

Bentley Bahrain, Call: +973 17238822

Special Nissan Patrol SE T2

BMW 7 Series Offers

Y.K. Almoayyed & Sons announced that a special Nissan Patrol SE T2 fitted with Nissan Genuine Accessories, by skilled technicians at Nissan’s state-of-the-art workshop, is now on display at the Sitra showroom. The Patrol SE T2 4.0L V6 producing a 275hp is accessorized with a Window Visor, Chrome Door Mirror Cover, Chrome Door Under Molding, and Stainless Steel Rear Bumper Protector, which gives it a unique look. The SE T2 has Remote Engine Starter System, Rear View Camera, Navigation System, Front 8” LCD Screen and Sunroof. In addition, it is also equipped with Safety features like Front Dual Airbags, Front & Rear Parking Sensors, Tyre Pressure Monitoring System (TPMS).

Y.K Almoayyed & Sons Nissan Call: +973 1773 2732 Euro Motors - BMW Showroom Call: +973 1775 0750 46

Gulf Insider February 2019

Car Bahrain

Audi e-tron

Watts the Story? Gulf Insider attends the International Driving Launch of the latest Audi to hit the streets; quietly!

t first glance, the Audi e-tron 55 Quattro, looks just like you would expect of a new crossover SUV from the company that already produces the Q5, Q7, etc. but this one is the company’s first fully electric production vehicle (EV) which has been long awaited. The e-tron is sized between its two fossil fueled siblings, so has more than enough room for most families, impressing us with its overall looks; it’s a pretty car. We spent a full day with the car in the towns, hills and deserts of Abu Dhabi, providing us with the opportunity to properly review the

Gulf Insider February 2019

practical capabilities of a 400km ranged EV in our local environment. The e-tron has a 95kWh battery that weighs in at a whopping 700kg, a little over 25% of the total car’s 2 and a half tons; it’s heavy! The Lithium batteries live in a fully-sealed container underneath the passenger compartment and drive the two electric motors that help to propel the car to 100 km/h in 5.7 seconds and onwards to its electronically-limited top speed of 200 km/h. The battery can be recharged from a 150kw DC fast charger which will provide an 80 percent charge in 30-40 minutes and can be fully charged

overnight from an 11kw home charging point which is certainly practical enough for general use for a daily driver in most of the Middle East. Like all EVs the e-tron also relies on its regenerative powers that recuperate battery power while coasting and braking. After a very rapid ascent of Jebel Hafeet, 10km of twisting mountainous road, which certainly drained the batteries considerably, the car managed to recover more than 13 km of range from the braking used coming down the mountain; impressive! Equally, the e-tron uses its electric motors to provide the braking with the hydraulically

Car Bahrain

From a driving experience perspective the car is very quick and extraordinarily quiet! With more than 490 lb-ft of torque available in Sport mode

operated brakes only coming into play in extreme situations. From a driving experience perspective the car is very quick and extraordinarily quiet! With more than 490 lb-ft of torque available in Sport mode this car is certainly no slouch, considering its weight, and with almost 30% of this weight at the lowest point of the car it certainly handles very well with just a slight oversteer noticeable when pressed hard into the bends. It rides on

at the front of each door, none of us testing that day managed to get used to these. However, if the display had been in the instrument console, a different story may have been the result in my opinion. From a technology point of view, the e-tron offers all you would expect from a slightly futuristic Audi, delivering a tech-laden cabin and numerous driverassistance features. Its dashboard is packed with high-resolution screens that

air springs and adaptive dampers that provide nicely controlled body motion, delivering a very comfortable ride throughout the day. Audi has also gone to great lengths to reduce wind and road noise, even to the extent of providing rear facing CCTV wing mirror stalks (an optional extra) which both increase the car’s range by a few percent as well as helping in the overall silence of the driving experience. It has to be said that this latter innovation seems to be more of a gimmick than a practical replacement for normal mirrors, with the reflections and glare from the sun here, coupled to their position just below the window

include Audi’s Virtual Cockpit as well as two flush-mounted touchscreens in the center. Adding to the displays, the car comes with an array of cameras and sensors which support its semiautonomous driving modes such as adaptive cruise control and self-parking assist; as expected both of these performed very well during our 500km day out. The interior of the car has Audi’s high quality design and finish throughout and it was pleasing to note that they have chosen not to load the car with futuristic accents or design ideas. This is most likely aimed at wooing more conservative standard SUV buyers to

Gulf Insider February 2019

Car Bahrain

the model, which to all extents is just like any other SUV in the range; a good idea in my opinion. Finally, it is worth mentioning the e-tron’s practical use here in the region in 2019. At the time of writing charging points are few and far between in most areas, which may give rise to some challenges in more extended trips across the region, however the navigation system provides assistance in this, planning your trip from A to B and calculating the most time efficient route based on the location of charging 50

Gulf Insider February 2019

Given the general daily driving cycle for most cars here in the region it is certainly a valid option for your next purchase.

points. This situation will, of course, improve over the coming 1-2 years as all manufacturers are gearing up to deploy fast charging stations at many of the ‘destinations’ that average drivers will visit such as Mall’s, major hotels, multistory car parks, etc. The overall strategy, from a government perspective, is less clear at this time, relying on all EV makers to roll out the infrastructure to support mass adoption, at least in this transition period, but we are sure this will also increase in the near future. In summary, the car is a great execution of the genre, which was both fun and practical to drive. Given the general daily driving cycle for most cars here in the region it is certainly a valid option for your next purchase and a great addition to the growing range of EVs available in the market today. There will be three trim levels for the e-tron and prices will start from around BHD 30,000, placing it squarely into its market segment.

For a test drive or further information, please contact Audi Bahrain on +973 1745 9933.

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Car Bahrain

Ferrari 488 GTB Gulf Insider drives another thrilling pre-owned Ferrari for the day.

hen I collected this amazing car I joined Noor, Euro Motors Ferrari lady, for a quick coffee. In case you don’t know, Euro Motors are famous for serving great coffee. I was in a hurry but didn’t want to leave the coffee unfinished so asked for it to go. It was then, as I climbed into this car’s luxurious cockpit that – horror - I couldn’t find a cup holder. So I relaxed and enjoyed my coffee before setting off. If this car doesn’t have cup holders, it at least does get you from zero to 100km/h time in 3 seconds – which I guess is more important to anyone wanting to own a Ferrari. Just as impressive, it will get you from zero to 200 kmh in under 8.3 seconds – 2 seconds faster than the Ferrari 458 it replaced.

Gulf Insider February 2019

This car is amazingly fast. Obviously I was unable to get anywhere near to test its awe inspiring capabilities on Bahrain’s roads. Rarely did I need to press more than

25% on the throttle to enjoy all the acceleration that I needed or could safely experience. Its twin-turbocharged V8 engine is only 3.9 litres, which is small for a car

Car Bahrain

like this, yet it produces a fantastic 493kW and 760Nm.This car is more than just fast. And the road is no place to attempt to test its limits. Unlike just about every other car in the world that hides its engine under a steel or aluminum hood, Ferrari proudly display their twin-turbo V8 for everyone to see under the glass of the rear hood. Some have complained that the fantastically powerful new turbocharged engine doesn’t sound like a traditional Ferrari. Low revs sound about the same, but when high reving there’s a slight

To arrange for your own test drive of a Ferrari in Bahrain, call Euro Motors on +973 17734734 or email at FerrariSales@euromotors.com.bh

Just as impressive, it will get you from zero to 200 kmh in under 8.3 seconds – 2 seconds faster than the Ferrari 458 it replaced. whistling which is not at all unpleasant, but it’s just different. Still, you do get a whole lot of extra speed to make up for it. There are air scoops, including two huge air scoops behind the doors that provide air for the turbo heat. There’s an F1-derived dual-clutch gearbox that’s smooth in ‘Auto’ and almost instantaneous in ‘Sport’ setting. I didn’t even try ‘Race’ setting.

Steering is beautifully weighted and precise, and the car feels super capable at all time and is a pleasure to drive. And it’s fast! An F1 Trac system, carbon ceramic brakes, and Magnaride Shock Absorbers all come as standard. The interior of this car is full of the highest quality materials and the very latest technology. The steering wheel cluster design of this and other Ferraris beats any other car for design beauty. If Armani designed an Italian sports car it would probably look like this. The car that I drove came with a Passenger Display, a pricey optional extra that allows the passenger to watch the car’s speed and other info on their own screen. This can be fun. I only had the 488 for a day. I believe a car like this needs at least several days to get the feel of it and really start to gain maximum pleasure. I still don’t really know this car, which reminds me… there are in fact a couple of small discreetly located cup holders in the 488 - I just didn’t see them! Gulf Insider February 2019

Car Bahrain

Ramming through the

desert

Gulf Insider experiences the all-new 2019 Ram 1500 through a smooth and rugged desert drive.

ypically, when you think of pick-up trucks you certainly don’t think of luxury and comfort. Personally, when I think of pick-up trucks I think of heavy power, heavy duty, masculinity, large-in-size and strength. When I saw first saw the line-up of the new Ram 1500 at the stunning Meydan Hotel in Dubai, these attributes are exactly the impression they give, yet, when you enter the new models, the level of

Gulf Insider February 2019

comfort and luxury is like nothing I’ve ever witnessed or known a truck to have. The new 2019 model of the Ram 1500 have made a coalition of both premium, high quality truck attributes and luxury. The complete redesign has made the new model better than ever with more strength, comfort, capability and performance… after having the pleasure of being invited down to Dubai to test drive this beauty for the regional launch,

I soon grew a love for this vehicle and realised it’s perfect for everyday use. On the morning of the drive day, we were welcomed at the front of the hotel to a vast fleet of gleaming 1500’s. I moved fast and was lucky to hop into the Ram 1500 Limited – the highest possible luxury specification level in the range. Entering the vehicle using the electric folding side-steps (available only on the Limited), the vehicle looks even larger on the inside with

Car Bahrain

beautiful design, detail and stitching. The new model delivers state of the art technology with the award winning U-connect system – the Limited boasts a huge 12inch touchscreen display. It is the largest screen I have ever seen in any car. It comes with navigation and split-screen capability plus Android Auto, Apple CarPlay and wireless charging pad is standard, also Type-C USB ports that charge devices up to four times faster than a standard USB outlet. Wide

The top-of-the-range Limited also comes with 22 inch wheels, premium leather bucket seats and a luxury wood/ leather wrapped steering wheel. The new Ram 1500 is also offered in Big Horn, Rebel and Laramie trims. The car was excellent to drive both on road and off road – smooth, powerful, quiet and it makes you very high-up above the rest on the road which I like. It also packs quite a punch when it comes to acceleration, certainly more

leather seats with a centre console arm rest the size of a small seat. Plenty of leather and real wood trim with 58% more leather than the competition. Everything inside the car was large and it worked beautifully.

than you’d think for a truck. The 1500 is powered by the legendary 5.7-litre HEMI V8, it packs 395hp at 5,600 rpm and 410 lb.-ft of torque. I didn’t hear or feel the engine until I hit a straight and empty road through the desert

When you enter the new models, the level of comfort and luxury is like nothing I’ve ever witnessed or known a truck to have.

Gulf Insider February 2019

Car Bahrain

The new 2019 model of the Ram 1500 have made a coalition of both premium, high quality truck attributes and luxury.

Gulf Insider February 2019

and slammed the pedal down, thanks to expanded noise cancellation and cylinder deactivation. When you put your foot down, the V8 makes a distinct roar. Great efforts have been put into maximized fuel efficiency as typically trucks can be harsh on the wallet when it comes to fuel consumption. The engineering team has made large overall weight reductions and the new 1500 also features Fuel Saver Technology (cylinder deactivation) which cuts in half the numbers of cylinders used to power the engine â&#x20AC;&#x201C; highly efficient for highway cruising when full power is not required. We really tested it to its maximum when we took it off road and even the most roughest and rockiest terrain was

no issue for the new 1500. We then ventured onto the desert off the beaten track and threw it around in 4x4 mode and it handled brilliantly. A true off road champion and great fun for those who regularly enjoy off-roading. Ram claims that the new 1500 sets a standard so high, the segment will find it hard, if not impossible, to match. I strongly advise you, even if trucks arenâ&#x20AC;&#x2122;t your thing, to at least book a local test drive and try the beast for yourself. Starting price of the car is BD 16,800 with VAT

For more information or to book a test drive, contact the Behbehani Brothers showroom on +973 1745 9955.

Last Word

THIS PHOTO WAS TAKEN 100 YEARS AGO! This photograph looks like it could be out of a Vogue Cover Shoot, but is actually a woman wearing traditional face mask in Muscat, Oman in 1919. Photo by Frederick Simpich Sr./National Geographic Society

Gulf Insider February 2019