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CONTENTS July 2014
TRAVEL
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Conflict of Interest?
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Henry Ford once said, “It is well that the people of a nation do not understand the banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Distribution Executives - Mohammed Yousif - Muhammed Shareef P - Rafnaj K P
He was right about at least one thing-- it’s true that hardly anyone on the planet really understands the monetary system... or the way that central bankers manipulate the entire global economy. I’ve met some seriously smart people who are very high up in finance. Senior bankers, traders, fund managers, etc. And even they don’t really understand it. Everyone just presumes that there are some really smart people who make policy decisions from their ivory towers. We’re told that they know what they’re doing, and we’re just all supposed to trust them. So who gets to pick these “Masters of the Universe”? Governments, right? Wrong.
Published by:
It is the BANKS who pick the directors who pick the presidents who dominate the committees which decides to loan money back to the banks at 0% interest.
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How is this not a MASSIVE conflict of interest? Printed at Awal Press, Kingdom of Bahrain. Distribution Bahrain: Al Hilal Corporation, Tel. +973 1748 0800 UAE: Jashanmals, Tel. +971 4341 9757
The multi-award winning Arabian magazine
The Arabian Review
Issue 114
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. 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. Gulf Insider now also includes: Easy to navigate website that offers online access to the magazine and much, much more. Access to valuable GCC news reported by the international media thanks to a free weekly email service for readers.
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Dear CLWFW – they are both outstanding but in different ways so hard to compare. The Jag’s big and brash, the Boxster’s more compact and ‘practical’, but who buys cars like these based on practicality? Drive them and make your own decision, and feel free to email us your experience - we will consider publishing it – Ed.
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I am staying at the Corinthia hotel in Tripoli, Libya and I’m amazed that there’s a copy of Gulf Insider magazine in my room. please don’t get me wrong – I’m delighted as GI is one of my favorite business type magazines. but why are you distributing it in Libya? Particularly as I see no reference to Libya within its pages. David S.
Market outlook
AFGHAN WAR ... Human faces
Dear David – we are as surprised as you are that Gulf Insider is in your Libyan hotel room and suggest an earlier guest staying in your room brought it with them and left it there – Ed.
INNOVATION IN GCC ECONOMIES
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Food for Thought I would like to thank you for the last month’s book review. You’ve asked all the questions that were troubling me since Tahrir square occupancy started. I’ve been visiting Egypt since I was a teenager. It hurts me deeply to see this lovely country and its warmhearted people in despair. “Why occupy a square?” is on my must-read list. Angela ,35
Status Quo and Emerging Trends
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I loved the car articles last month on the Porsche Boxster and Jaguar F-Type convertibles, as clearly did the guy who reviewed them both. I’m seriously thinking about buying a new sports convertible later this year, so – in all honesty – which is the best car of the two? – Car Lover Waiting For Winter
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Appreciating Good News I’ve been a dedicated GI reader for four years now as I find your business-related news really engaging. Last month I was surprised to see a bit off-the-topic article about skateboarding school in Afghanistan. It’s a beautiful country with a beautiful history. As an Afghani living in the Gulf, I appreciate any positive news about my homeland. Perhaps in the future you could interview Khalid Hussein, the author of “The Kite Runner”. Aarmaan
Honest MBA Article I enjoy Gulf Insider’s honesty, and this was specially so for me with the article last month – ‘Is an MBA Worth the Money?’, as I have been considering enrolling on an MBA. The article gave me a new perspective to consider. Thank you and keep up the good work. Bassam Ali,
Dear Bassam – check out our article this month; Is a CFA the New MBA? – Ed.
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Gulf Round Up News
GULF ROUNDUP NEWS AROUND THE GCC AND BEYOND
Infiniti Appoints Managing Director for the Middle East Infiniti has appointed Juergen Schmitz as its first Managing Director for the Middle East – in a move to enhance the brand’s identity in the region. Having been General Manager for the past three years, Mr Schmitz will assume his new responsibilities with immediate effect, and report to François Goupil de Bouillé, Vice President, Infiniti Europe, Middle East and Africa (EMEA). Schmitz said: “Globally, Infiniti has its third largest market share here, which we and our partners plan to substantially increase in the coming years.” As part of the plan to achieve its growth plans, Infiniti will begin a recruitment drive to add further talent to its regional team.
IATA: Airlines Make Less than $6 per Passenger The International Air and Transport Association said on Monday it expects airlines to record combined net profits of $18 billion this year, amounting to less than $6 per passenger. Revenues were forecast to reach $746 billion, IATA directer general Tony Tayler said in Doha, pointing out that net margins stood to average 2.4 percent only. It sounds impressive. But the brutal economic reality is on revenues of $746 billion dollars we will earn an average net margin of just 2.4 percent,” he said. This amounted to less than $6 per passenger, added Tayler, who was speaking at an IATA-organized annual conference of the airline industry in the Qatari capital. IATA said in March that some 240 carriers representing 84 percent of global air traffic had revised down their profit forecast for 2014 to $18.7 billion from $19.7 billion. Tyler said the industry was celebrating 100 years of aviation in which 3.3 billion passengers will have travelled and 52 million tonnes of cargo transported. In total, some 50,000 destinations are linked through around 100,000 daily flights, while the industry generates more than 58 million job opportunities worldwide. – AL ARABIYA 12
Gulf Insider July 2014
KSA Amending Laws to Monitor Social Media The Saudi authorities are reviewing the AntiCybercrime Law to amend it so as to initiate legal proceedings against social networking sites such as Twitter for allowing accounts which promote adultery, homosexuality and atheism, according to a report published in a section of the Arabic press. Researcher and consultant of new media uses and Shoura Council member Dr. Fayez Al-Shehri told Al-Hayat Arabic daily that there are around 25,000 accounts on Twitter targeting Saudis. There are around 4,500 accounts that promote atheism. Around 15,00025,000 of such accounts are in Arabic language. Al-Shehri noted that organized bodies are behind such targeted attacks, which were earlier conducted through traditional media. – SAUDI GAZETTE
News Gulf Round Up
Saudis Spend 30% of Income on Communication Services Phone bills and Internetbased services provided by telecom companies eat up 30 percent of individual Saudi income, local media reported, quoting data released by the consumer protection agency. Nasir Al-Tuwaim, head of the Consumer Protection Association (CPA), indicated that while the average consumption has been pegged at 30 percent, some individuals spend 50-70 percent of
their income on communication services. He added that the CPA intends to publish the latest findings in relation to the services provided by telecom firms every three months to monitor consumption rates and quality of services. In addition, the association will also rate the telecom providers. Al-Tuwaim noted that the figures released show that consumers spend a considerable amount of time and resources on phone calls and Internet services, despite the adverse economic and health consequences. The CPA chief attributed the high ratio of telecom costs to a number of factors, including the relatively high call price in the Kingdom, which stands at SR0.35 per minute compared to international rates of SR0.07. Telecom charges in the Kingdom are among the highest in the world, he said. He also said that lack of information about telecom charges, especially roaming prices and Internet services, hits consumers hard. – ARAB NEWS
Batelco to Launch New Samsung 4G LTE Mobile Hotspot Batelco is the world’s first telecoms company to introduce Samsung’s 4G LTE Mobile Hotspot device. Users can share a single fast connection with up to ten users simultaneously over Wi-Fi. The super slim device, packed with a powerful battery that can last for up to eight hours. Batelco Consumer Division General Manager Muna Al Hashimi said, “Speed and ease of access is very important these days for mobile users. Everyone wants wireless connectivity no matter where they are. We therefore strive to deliver world class technology to make our customers happy.”
Leaked Emails: Qatar’s “$5m World Cup Bribe” Mohammad Bin Hammam, Qatar’s former top football official, reportedly paid $5 million to help raise the Arab country’s chances of hosting the 2022 World Cup. The UK’s Sunday Times said it had obtained a “bombshell” cache of millions of leaked emails and documents relating to payments made by Bin Hammam who at the time was an executive member of FIFA, footballs’ international governing body. It said the documents show Bin Hammam had used slush funds to pay out the cash to top football officials to win a “groundswell” of support for the Gulf country’s 2022 World Cup bid. “[Bin Hammam] used 10 slush funds controlled by his private company and cash handouts to make dozens of payments of up to $200,000 into accounts controlled by the presidents of 30 African football associations who held sway over how the continent’s four executive (Exco) members would vote,” the daily said. He also hosted “a series of lavish junkets” for football presidents across Africa “at which he handed out almost $400,000 in cash,” the paper said. The Qatari also “met delegates privately to offer further payments while pushing for their support for the Qatar bid,” it added. Bin Hammam, according to the newspaper, also paid $1.6 million into bank accounts controlled by former FIFA vice-president Jack Warner, $450,000 of which was before the vote for the World Cup. The paper said Bin Hammam declined to respond to correspondence and calls last week. – AL ARABIYA
Gulf Insider July 2014
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Gulf Round Up News
Cinemas to Open in Saudi Arabia? An investor has officially requested a license from the Saudi General Commission of Audiovisual Media to establish cinemas in the country, a local business website reported. The commission did not object to the idea in principle, and asked the investor to submit a study of the planned project, Maaal reported. Cinemas are forbidden in Saudi Arabia. If the commission thinks the investment is feasible, it could ask higher authorities to clear the way for movie theaters nationwide, sources reportedly said. While opening cinemas in Saudi Arabia is “inevitable,” challenges remain, Mutlaq al-Buqami, editor-in-chief at Maaal, told Al Arabiya News. “Saudis spend more than $1 billion watching movies in Bahrain and Dubai. This is a big number,” Buqami said, citing unofficial reports. – AL ARABIYA
Dubai House Prices Growth Still Tops World Rankings A number of strict measures undertaken by Dubai authorities, including doubling the property registration fees and increasing the down payment requirements, among others, have begun paying dividends as the growth in prices of Dubai residential property is seen slowing down, according to a new report. Real estate broker and research firm Knight Frank said in its latest report that Dubai continues to top its Global House Price Index annual rankings for the fourth consecutive quarter, with recorded price growth of 27.7 per cent in the year to the end of March. However, the firm noted that measures including the doubling of transfer fees and the mortgage cap are having an impact on the emirate’s property market, as average home prices rose by just 3.4 per cent in the first three months of 2014. The rate at which house prices are rising globally has seen a slowdown, the Knight Frank report suggests. The Global House Price Index has risen for eight consecutive quarters but the rate of price growth slowed in the first three months of 2014, the firm noted. – EMIRATES 24/7
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Union Formed to Protect 120,000 Labourers in Bahrain Unionists in Bahrain claim they are close to launching an official organisation to help protect the rights of more than 120,000 expatriate labourers. Vice-president of Bahrain Free Labour Union Federation (BFLUF), which is establishing the new union, Bassem Kuwaitan told Gulf Daily News that members - expected to be mostly construction workers – would be provided with legal assistance and help with improving their living conditions and gaining health insurance. Workers and employers are now being approached to join the new group. They would be charged a nominal fee of BD1.20 ($3.10) per year. “The number of members is going to be huge and we are working on other areas within BFLUF to accommodate and help these workers,” Kuwaitan said. “The planned union is expected to address issues on wages, safe accommodation, health, safety, insurance and other issues affecting construction workers. “The challenge ahead of us it to encourage companies and even workers to be part of trade unions, as they tend to shy away or ignore us.” – ARABIAN BUSINESS
Gulf Round Up News
PAUL Bakery & Restaurant’s Iftar menu During an exclusive media event held on June 16th, PAUL Bakery & Restaurant’s chefs unveiled their all-new Iftar menu, with each meal said to be crafted to compliment different taste buds. PAUL’s guests will be offered to break their fasting with Jallab – a traditional drink in the Middle East – before choosing between roasted red capsicum soup and lentil soup for appetiser. Next on the menu is a selection of salads including potato salad with asparagus, goat cheese, and mushrooms; and a healthy shrimp quinoa salad – both to be served with freshly baked bread. And finally, the main course features a choice of three meals: beef tenderloin stew with mushrooms and asparagus, served with oriental-flavoured rice; for the health-conscious diners – grilled sea bass filet served with artichoke barigoule and lemon fennel rice; and grilled chicken breast with rosemary and a side of orzo pasta, spinach, and feta cheese. To wrap up the Iftar, PAUL offers either date or raisin tart for dessert. The Iftar Menu will be available during the entire month of Ramadan at PAUL’s Seef Mall and Bahrain City Centre outlets, with a price of BD9.9 per person.
Sofitel Bahrain Launches Layali Al Zallaq Ramadan Tent Sofitel Bahrain welcomed its guests for the launch event of Layali Al Zallaq Ramadan Tent, the hotel’s largest to date, on June 23rd. The Iftar buffet, served in Saraya restaurant, was created by Sofitel Bahrain’s team of expert chefs, for a truly unique experience of Ramadan under The Stars.
Oman Air Celebrates ten Years of its Muscat-Bahrain Service Oman Air celebrated recently the tenth anniversary of its Bahrain service with a series of events involving international diplomats, staff, travel agents, and other valued partners. The celebrations were held at the airline’s offices in Manama, Bahrain International Airport, and the Sofitel Hotel, where senior managers from Oman Air were joined by ambassadors from a number of embassies, business leaders and the media. This event was jointly hosted with the Thai Embassy and Sofitel, with whom a series of promotions were also planned as part of the Thai Week, which ran during the same period.
Doha Housing Shortage ‘Could Create Slums’ Slums will form in Doha if the city does not immediately address its affordable housing shortage, a senior investment executive has warned. Qatar’s population of 2.1 million is expected to rise to 3 million before the end of the decade, with the majority of new people to be foreigners. Al Argan Investment Company chief information officer Ramy Echo said, between now and 2017 about 250,000 homes would need to be built but only 150,000 were planned, leaving a gap of 100,000. Head of research at Silatech, Tarek Coury, said of today’s population about 15 percent were nationals, who either could afford their own homes or were given subsidies by the government. Among the foreigners, about 600-700,000 were construction workers who lived in labour camps, leaving 1 16
Gulf Insider July 2014
million people, of which about 85 percent needed affordable housing. But developers were reluctant to build at the lower price range because the high cost of land made it less financially viable than luxury products. Echo said, typically, affordable housing became unviable when land made up more than 50 percent of a project’s overall cost, which was common across the Gulf. – ARABIAN BUSINESS
News Gulf Round Up
Few Takers for 10,000 Private Sector Jobs Offered to Young Saudis Only 1,760 young Saudi men and women applied for 11,751 vacancies made available by 70 private companies and establishments in the Saudi capital, the center for employment and training at the Riyadh Chamber of Commerce and Industry (RCCI) said in a report covering the first six months of the current year. The report said the vacancies were offered by giant companies operating in the sectors of food, technology services, industry, tourism, contracting, shopping and others. According to the report, the salaries being offered for these jobs ranged from SR4,000 to SR10,000. The report said the vacancies covered a number of specializations, including production line employees, accountants, cashiers, engineers, exhibition managers, salesmen and saleswomen, data entry clerks, technical support staff, customer service officials, operations analysts, health supervisors, personnel affairs specialists, marketing employees, mechanics, receptionists, security guards, drivers, electricians, welders and others. – SAUDI GAZETTE
Mindshare MENA Recognized by Effie Effectiveness Index 2014 Mindshare, which is part of WPP, has once again been recognized as a top performer in the industry by the Effie Effectiveness Index, an annual ranking of the marketing and communications industries’ most effective agencies, advertisers, and brands. Winner and finalist data was compiled by a global network of partners to thoroughly judge each entry with a complex point system, and Mindshare surfaced to the top 3 agencies for the Middle East & Africa region with a whopping 73 points. “When it comes to marketing that matters, innovative thinking simply isn’t enough – work has to be as effective as it is creative. This year, we are very proud to be recognized for both our fresh ideas and our undeniable results,” says Mindshare MENA CEO Samir Ayoub.
Majority GCC Companies Fall Ignorant Victims to Cyber Bugs A majority of companies in the UAE and the Gulf are not even aware that they have been attacked by cyber criminals. According to experts, the number of ignorant victims could be almost 90 per cent of the overall affected. The recently published Microsoft Security Intelligence Report points out that in countries such as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, the infection rates of 10 to 12.9 computers per thousand is nearly twice the worldwide average for infection rates. According to a recent survey result by PricewaterhouseCoopers banks and other financial institutions continue to remain the number one target both globally and across the region. As Nicolas Solling, Director, Technological Services at Help AG, a German IT security solutions provider with offices in the UAE said, a lot of companies here do not know that they are attacked simply because there is no visibility into the security events that is happening in their networks and sometimes the events are very difficult to detect “We actually know that because studies have shown that it has taken almost six months for other people to actually tell them that they have been breached. During these six months the company is living in happy ignorance that nothing has happened. I would say very high percentage of companies fall into this category.” – EMIRATES 24/7
Gulf Insider July 2014
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Insider Bahrain Driving Expats
Bahrain’s roads may soon be cleared of expat drivers, following the recent Shura Council’s vote for a new traffic regulation.
BAHRAIN:
DRIVING EXPATS AWAY I
n the time when Bahrain’s reputation as one of the most progressive states in the region tops the Government’s priorities list, its own decision-makers might have put less than flattering light on the Kingdom. The island’s 675,000-strong expat community voiced the feelings of concern and disbelief, when 15 out of 26 Shura Council members recently voted in favour of the new draft traffic law, including the long-debated Article 20 that calls for barring from driving almost all of the foreigners living and working in the country, with a few “eligible” exceptions. The regulation was inserted into a
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64-article law by the Parliament some seven years ago and has been on the table since then, preventing the entire law from being passed, with majority of Shura Council members fearing that the article might cause an avalanche of repercussions.
The Reservations Despite all the objections raised, the MPs were reluctant to withdraw the article. They argued that once the “resident expatriates living in Bahrain of non-GCC nationality are not allowed to get a driving license unless the nature
By Agnieszka Piechoska of his/her job requires it”, the worrying number of traffic offences in the Kingdom will be no longer a problem, since – they claim – expat drivers are the main reason behind the issue. On the other hand, the critics point out the lack of reliable statistics or study to back these claims. Most of the Shura Council members and even some of the MPs are rather skeptical about not only these justifications, but also the proposed solution, which – according to them – might be impractical or even illegal. So why did they eventually give in? “Although it needed more time for discussion, the Shura Council approved
Driving Expats Insider Bahrain
the Article 20, because the Government is in a hurry to push the new traffic law through,” Mr Ahmed Al Saati, member of the National Institution for Human Rights and MP, told us. “We desperately need new traffic law, because the current one is out of date. We’ve seen a huge development in Bahrain’s infrastructure and the number of cars has increased substantially, plus there are new habits such as using mobiles while driving, which need to be addressed. “But I voted against it, as Article 20 violates human rights. It’s illogical. Plus it puts Bahrain in a very bad light on the international scale.”
The Discussion
We’ve seen a huge development in Bahrain’s infrastructure and the number of cars has increased substantially, plus there are new habits such as using mobiles while driving, which need to be addressed.
Soon after the vote had been passed, the Government bodies, major organisations, and societies spoke their minds on the topic. Bahrain Chamber of Commerce & Industry (BCCI) issued an official statement that it intended to block the law, describing it as “retrograde move for the country’s tourism industry that will stifle business confidence,” referring to Bahrain’s heavily promoted businessfriendly environment. “The new law does not adapt to a fastchanging world, which requires more facilities, streamlined laws, attractive investment environment, and ease of doing business,” it said. Information Ministry too criticised the law, branding it “constitutionally questionable”, with Minister of State for Information Affairs and Government’s official spokeswoman Sameera Rajab reminding that Bahrain has “always been moving forward, not backwards.” The human rights groups raised concerns regarding everyone’s right to freedom of mobility. “From our point of view the Article 20 is breaching the Constitution and international covenants signed by Bahrain. Constitution protects the right of all inhabitants in the country, not only the citizens, and there should be no limitations of the movement of anyone,” Dr Abdulaziz Abul, National Institution for Human Rights President and Council member, told us.
Gulf Insider July 2014
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Insider Bahrain Driving Expats
Worst-Case Scenario The final decision is yet to be made, after the law has been sent to His Majesty King Hamad for ratification. It will then be referred to the Constitutional Court to ensure it is not in breach of the Constitution or doesn’t impede development. With an average expat in the Kingdom commuting every day, be it to the workplace, or – in case of the many stayat-home mums – to transport children to school, or run everyday chores, or driving to the shopping mall or restaurants, nearly all of the workforce opts for independence of driving own vehicle, excluding the low-income workers that usually travel in company-provided transport. Ruling out the car, the alternatives seem to be limited. “It’s not like Dubai. We don’t have a proper public transport system, and the weather is not suitable for walking long distances or cycling. The car is the only option for majority of us,” said Mr Al Saati. 20
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“Constitution protects the right of all inhabitants in the country, not only the citizens, and there should be no limitations of the movement of anyone.” He also believes the situation would cause chaos and frustration among expat community. “This gives a chance for corruption,” he warned. Kuwait could serve as an example, as driving for expats in the country has been restricted since last April. According to Kuwait Times, several traffic department employees have already been involved in issuing illegal driver’s licenses. Adding to this the negative effect on economy, mentioned in BCCI’s statement, with a possibility of foreign workforce leaving the country, tourists hesitating to visit, car rental and insurance companies experiencing losses, as well as banks and other institutions being affected – many experts hope
the implementation of Article 20 will be reconsidered. “I strongly believe that this article won’t be passed. Even Shura Council didn’t approve it easily. Now it’s in the hands of His Majesty, and I am appealing to him not to pass it, and return it for more discussion,” Mr Al Saati said. Dr Abul has similar faith in the Government’s better judgment: “Perhaps it will take time, maybe till the end of the year, but I’m sure the article will be nullified. We should think of better ways to deal with the traffic jams, without violating human rights of anybody.”
When opportunity calls, answer emphatically. The Continental. The luxury of spontaneity.
Continental GT V8 fuel consumption in mpg (l/100 km): Urban 18.4 (15.4); Extra Urban 36.7 (7.7); Combined 26.7 (10.5). CO2 Emissions 246 g/km.
Insider Legal Bahrain
Gulf Insider Special Feature
BAHRAIN LEGAL 2014 A guide to some of Bahrain’s top legal firms (large and small).... and what they specialise in. CHARLES RUSSELL ALMOAYED CHAMBERS AL JABAL & ASSOCIATES ZU’BI & PARTNERS
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BLAKE CASSELS & GRAYDON NORTON ROSE BAKER & MCKENZIE TROWERS & HAMLINS
Legal Bahrain
ZU’BI & PARTNERS ATTORNEYS & LEGAL CONSULTANTS
As Zu’bi & Partners Attorneys & Legal Consultants celebrates its two-year merger anniversary, we take a closer look at Bahrain’s oldest established local law firm.
The law firm’s rich heritage has been passed along over the years, and it has established itself as a top-tier legal services provider not just in Bahrain, but the GCC region and beyond – being regularly recognised by independent legal commentators and publications. When two years ago Hatim S. Zu’bi & Partners joined forces with Qays H. Zu’bi Attorneys & Legal Consultants to become Zu’bi & Partners Attorneys & Legal Consultants, the company truly reinforced its range of legal services and quality legal advice – all from prestigious headquarters at GBCorp Tower of Bahrain Financial Harbour, in addition to the Dubai-based licensed legal office. Today, Zu’bi & Partners’ diverse and multicultural team of experienced lawyers, led by Hatim S. Zu’bi as Chairman and Qays H. Zu’bi as Senior Partner, come from major international law firms, and are licensed to practice law in several leading jurisdictions such as US, UK, India, Pakistan, Jordan, Sudan and Egypt, offering thorough expertise across almost any aspect of local or international law. In fact, Zu’bi & Partners are known
as “school” for local and expatriate lawyers, some of whom have moved on to join major international and regional law firms practicing in neighbouring countries.
The Expertise
Zu’bi & Partners Attorneys & Legal Consultants’ client base consists mainly of Fortune 500 companies and banks, as well as high net worth individuals. The company maintains strategic relationships with prominent regional and international law firms, offering local legal opinions, necessary to close many of the infrastructure or financing deals, which are governed by Bahraini law. With the help of Qays Al Zu’bi Business Services WLL, the firm’s affiliated company which deals with corporate Although Hatim S. Zu’bi & Partners’ related matters, Zu’bi & Partners can Bahrain office was established in offer its clients a “one stop shop” fast 1971, it comes with the legacy of four track legal service including assistance at generations dating all the way back to all stages of business planning process, 1921, when Mr Hatim S. Zu’bi’s late and covering all aspects of Bahraini father, Sharif Ali Obaid Zu’bi, began legislation and official requirements. practising as a leading lawyer throughout Likewise, PRIME Instant Offices the Middle East region. & Business Centre WLL, another affiliate, provides a catalogue of services from leasing of offices, translations, assisting with immigration, residency Zu’bi & Partners is the merged firm of two Banking & Finance and work permits, and payroll long-established Bahrain law practices: Hatim Communication & Entertainment management, among other S. Zu’bi & Partners, the oldest established Company Incorporation / Registration services. local law firm in Bahrain, and Qays H. Zu’bi Intellectual Property Attorneys & Legal Consultants. Their clients Labour & Employment For more information call +973 include private and public institutions, Litigation, Arbitration & Dispute Resolution 17 538 600, write to GBCorp government and quasi-government bodies Mergers & Acquisitions Tower Floor 16, Bldg 1411, Rd – local and international, as well as high net Project Structuring & Financing 4626, Block 346 Bahrain Financial worth individuals. In addition to Bahrain and Securities Harbour District, PO Box 2397, other GCC countries, their team is licensed Manama, Kingdom of Bahrain, to practice law in the USA, England, Wales, Contact: email qzubi@zubipartners.com, India, Pakistan, Jordan, Sudan, and Egypt, Tel: +973 17538600 Email: qzubi@zubipartners.com or visit www.zubipartners.com among others.
The Value of Heritage
Overview
Specialising in:
Gulf Insider July 2014
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Bahrain Legal
BAHRAIN LEGAL FEATURE
CHARLES RUSSELL LLP Q&A with Patrick Gearon, Partner and Head of Bahrain Office.
“Traditionally, the great majority of Bahraini law graduates have only joined local firms and international firms have been almost totally staffed by expats flown in. We are trying to change this model.’’ Overview
team. After such frenetic expansion they are now allowing themselves a period for consolidation.
harles Russell is the only international legal firm head quartered in Bahrain, opening their office which serves the MENA region in 2006. They have both the largest litigation team and more cases by value than any other legal firm in the kingdom.
Specializing in:
C
Under the management of Patrick Gearon, the Bahrain office has been busy this past year. The firm has doubled staff numbers, opened a new Qatar office, moved to a new and much larger office in Bahrain (in the World Trade Centre), entered into an association enabling them to offer services in Saudi Arabia, and introduced an Islamic finance and banking
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Corporate & Commercial
Litigation & Dispute Resolution
Construction & Real Estate
Intellectual Property
Private Client and Family advice
Contact: Tel +973 17 133203 Email: patrick.gearon@charlesrussell.co.uk
Legal Bahrain
Gulf Insider: What differentiates Charles Russell, which is an International law firm, from a “local” firm? Patrick Gearon: There are two types of legal firms in Bahrain; local firms that practice Bahrain law, and international firms that are currently not permitted to practice Bahrain law, but provide international services such as IPOs, commercial contracts, Real Estate transactional services and dispute resolution. When litigating within the courts of Bahrain, International firms are required to partner with a local lawyer. Traditionally, the great majority of Bahrainis have only joined local firms and international firms have been almost completely staffed by expats flown in. We are trying to change this model and have instituted a policy to hire Bahraini national law graduates so we now have Bahrain lawyers working in every department who are able to offer a local perspective and fully understand the Arabic context of issues. To do this we have made a considerable investment in retraining several Bahraini law graduates as English solicitors. This has involved their going through continued training in both Bahrain and the UK. GI: What are you most proud of? PG: We are now one of if not the largest law firm in Bahrain and a number of high profile client wins have brought the firm considerable attention. We position ourselves at what could be described as the “high end” of the market which inevitably means that we are prepared to turn down business when we feel it doesn’t suit our particular areas of expertise. GI: Do you predict any changes in the near term for Bahrain’s legal industry? PG: I believe that over time there
“The Bahrain Chamber of Dispute Resolution has elevated Bahrain as an internationally recognized forum for dispute. It has established a deserved reputation for its process as well as the high quality of its judges. The process of arbitration, rather than litigation, is ideally suited to the culture of the Middle East’’
advantages when it comes to attracting multi-national companies to its shores, thanks not least to its attractive tax regime, the ease of setting up a business here, the high quality of financial regulation and relative low levels of bureaucracy encountered once companies have been established.
will be a relaxation on the current ban on international lawyers practicing in Bahrain’s courts.Though I can understand the intentions for the current ban it falls victim to the unintended consequence that it removes from Bahrain’s brightest and best law graduates the option of working for an international practice. If a Bahraini law graduate does not want to work for a local firm, in effect their only option currently is to leave Bahrain.
GI: How do you charge for your services? PG: Price should never be an impediment for doing business. Charles Russell prices projects based on the value we generate for our clients. We adopt a flexible approach to the way in which we structure our fees. To ensure clients have cost certainty at the outset, we offer a number of fee options (depending on the nature of the instruction) to ensure that we operate within our client’s budgets and expectations. The litmus test for us is the large number of clients we have had over many years and who instruct us in many different legal situations.
GI: What do you consider to be the benefits for international companies doing business in Bahrain? PG: Beyond being by far the best location in the region for quality of lifestyle, Bahrain has considerable
GI: How would you describe the current state of Bahrain’s Legal Industry? PG: The legal industry in Bahrain is varied. No legal system is perfect and Bahrain is no exception. The Court process for civil cases is slow in Bahrain but that is the case throughout the region. We aim to do our very best for our clients within an imperfect system. That said, the Bahrain Chamber for Dispute Resolution has elevated Bahrain as an internationally recognized forum for dispute resolution. It has established a deserved reputation for its process as well as the high quality of its judges. The process of arbitration, rather than litigation, is ideally suited to the culture of the Middle East. GI: Have you noticed any other cultural differences? PG: In Europe and North America, professional and client contacts can be made very fast. I’ve learned that in the Middle East business relationships with clients are built up slowly over time and so requires patience. Trust comes slowly and is very much based on the strength of relationships.
Gulf Insider July 2014
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Bahrain Legal
BAHRAIN LEGAL FEATURE
ALMOAYED CHAMBERS Q&A with Aymen Almoayed, Chairman and Managing Partner
Law education is very empowering, as you are fully aware of your rights.
Overview
A
lmoayed Chambers is a regional legal and strategy firm based in Bahrain with affiliates and offshoots throughout the GCC. They specialise in international law disciplines and complex legal issues, mostly dealing with high net worth clients. Although they have recently doubled in size, they continue to keep their doors open for Bahrain’s most talented, offering internal training programmes for fresh law graduates. Headed by Aymen Almoayed since
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2010, the company is in a process of internal restructuring to gear up for further growth and respond to demand.
Specialising in: Dispute Resolution Corporate Services Strategy
Contact: Tel: +973 17100000 Email: interns@almoayedchambers.com
Legal Bahrain
Gulf Insider: What are your firm’s specific areas of expertise? Aymen Almoayed: We focus on cross-industry disputes, usually spanning more than one country. We also do a lot of acquisitions on behalf of our clients, many of whom outsource all their legal handling to us. GI: What differentiates Almoayed Chambers from others? AA: While most legal firms in Bahrain specialise on small local disputes, we are capable of taking very complicated international cases. Very few firms here can do that, because it requires expertise in laws that apply in different jurisdictions. We are also very systematic in ensuring constant communication between the litigators and the consultants who draft the contracts, so that every single sentence in our agreements relates to a certain case. In most other firms this does not happen, although it is very important. A few additional lines in the contract can easily fix a “loophole” and prevent future problems. GI: What do you expect for the next 12 months to happen for your firm? AA: We are growing strong; we have actually doubled in size. We also started taking very large arbitration cases abroad, which is new for us. And we’re now recruiting quite a lot. We have finally come to terms with the fact that the local calibre that we want is not available right out of the University. That’s why we have developed our own internship training programmes. In the next 12 months we want to gather as many student trainees as possible, and select the best ones. While in other industries there’s no need for that, our problem is the unsatisfactory level of law education in Bahrain. Even the graduates who studied abroad still need a crash course on Bahraini laws upon coming back. GI: What are the major differences between Bahrain’s legal system and that of the Western part of the world? AA: There are three main differences between Bahraini and European or American legal systems. First, the role of the Constitution – while ours is very
large and detailed, the American one is rather brief, and the British one does not even exist in writing. That gives the judges great power. The authority of our judges is much more restricted in this regard. The second difference is time management – the judges in Western jurisdictions take it very seriously. In our system the two or three-month delays for minor reasons are too common. This actually discourages many people from seeking justice, even in serious cases. The third difference is the fact that our judges rely on experts who are the ones to read all the related documents. In Europe the judges read the files themselves.
Our legal system has a serious administration problem. We need to improve our resource management. GI: How would you describe the current state of Bahrain’s legal industry? AA: Our legal industry is doing fine and I believe it will even improve in the coming years. There are many unresolved disputes that have been continuing for the last few years, which are now starting to go to court, as their Statutes of Limitations are about to expire. Plus, Bahrain’s population has increased, so naturally there are more issues. Our legal system, however, has a serious administration problem. We need to improve our resource management. For instance, all the summonses for the particular day are scheduled for the same time in the morning. That means some 40 people show up in the court at the same time, forced to wait long hours for their hearing, and if they’re not present when their turn comes, the hearing gets delayed for a month.
GI: How does Bahrain’s legal industry compare to other jurisdictions? AA: It is much stronger than that of our neighbours’. The only one that comes close is Dubai, with their new laws. If you want to compare the judiciary, we rank really high, too. We are very weak in admin, but our judges are extremely respectable. GI: What would you describe as your proudest achievement? AA: The most recent achievement I would like to recall relates to investment banking, where many people’s funds were misappropriated in a so called Private Placement Memorandums (PPMs) scam. It’s a great feeling to be able to recover the money from people who took it without legal rights, and return it to our clients. We were the only firm who refused to approve PPMs back when almost all the other law firms were making huge profits on doing so. We deemed PPMs illegal right from the start, as they were targeting people who did not have the capability to assess whether the investment was good or not. And then, we found a provision in our law that guaranteed full refund for each and every stakeholder. GI: Most valuable lesson learned? AA: I’ve learnt that as a lawyer I am directly involved in social engineering, which comes with responsibility. If the law defines ‘shouting at someone’ as assault, it will affect how people interact with each other; harsher penalties for parking violations will make drivers change their habits on the road. I also learnt that law education is very empowering, as you are fully aware of your rights. GI: How do you charge for your services? AA: It depends on the case type. The industry norm is either charging hourly or with a fixed fee. If you’re doing transactions, you can charge based on the success. My preference is a fixed fee, although it may be better for the client than the firm, if the case takes longer than initially estimated. However, it also prompts the firm to speed up the process to avoid that.
Gulf Insider July 2014
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Bahrain Legal
BAHRAIN LEGAL FEATURE
AL JABAL
CONSULTANCY Q&A with Ali Al Jabal Managing Partner Overview
F
ounded in 1995, Al Jabal Consultancy is a full service law firm for Bahrain, Oman, and DIFC Courts. With a focus on major expansion, both for their Bahrain and Oman offices, Al Jabal Consultancy’s medium-sized team focuses on complex transactions for major clients both locally and internationally.
Gulf Insider: What is your expertise? Ali Al Jabal: We do a lot of banking transactions, especially Islamic banking, mainly because Bahrain has a very strong finance sector. We represent some major institutions in this regard. We handle various corporate and arbitration cases as well. We also do some criminal cases, but again, most of them are related to banking. GI: What are your plans for the next 12 months? AJ: We are in a process of strengthening our office in Oman, where the market is booming at the moment. We are also planning to expand our Bahraini headquarters, and most probably double in size. GI: How would you describe the current state of Bahrain’s legal industry? 28
Gulf Insider July 2014
AJ: From our point of view, as we specialise in banking, the market is very strong. Bahrain is one of the biggest Islamic banking hubs. It is also a great destination for international banking institutions, because of the solid legal infrastructure, one of the best in the GCC region, as well as the good regulatory system, and – what I think is most important – sizeable manpower of highly qualified Bahraini bankers. As for the quality of legal services, I must say that there is room for improvement in our educational system. The fresh graduate lawyers in Bahrain are often unprepared for their practice and struggle in the beginning. As I myself remember how helpful it was to receive some support from the senior colleagues in the early days of my career, I do my best to help out a number of small law firms. I want them to grow. I believe in young talent and that’s why I have
Specialising in: Banking & Finance Corporate & Commercial Litigation Bankruptcy & Corporate Restructuring Dispute Resolution & International Arbitration Insurance Intellectual Property Rights
Contact: Tel +973 17530400 Email: aljabal@aljaballaw.com made two of my associates partners in our firm. GI: How do you charge for your services? AJ: Most of the law firms in Bahrain work on a case-by-case basis, and charge a fixed amount or a percentage upon finalising the case. In this region, charging per working hours is sometimes hard to implement due to cultural background, but because we provide many corporate consultations on an international level, we mostly charge by working hours anyways. Our rates depend on how often the client comes back to us; the more regular the client, the lower the charge will be. We also have a policy for each case type, for example criminal case cannot be treated the same as consultation.
BLAKE CASSELS & GRAYDON
BAKER & MCKENZIE
Specialising in:
Specialising in:
Blake Cassels & Graydon LLP (Blakes) has an office in Bahrain, as well as an associated office in Al Khobar, Saudi Arabia, through its affiliation with Dr. Saud Al Ammari Law Firm. They have a team made up of local and Western-qualified lawyers capable of advising clients on both a regional and global scale. This is aided by the Firm’s initiatives in other parts of the world including Asia, Africa, India and Europe.
Corporate/Commercial and Regulatory matters Joint Ventures Financing including Project Finance Securities Privatization Litigation, Arbitration and International Dispute Resolution Capital Market Regulations and Licensing Title and Lease issues Competition and Trade laws
Baker & McKenzie is an international law firm practicing in Bahrain since 1998, and in the Gulf for more than three decades. Offices in Bahrain, Abu Dhabi, Dubai and Doha. Having global resources across 46 countries, they handle a range of international and domestic matters. Their multilingual lawyers offer services in both English and Arabic, including documentation.
Banking & Finance Corporate Compliance Dispute Resolution Employment IT & Communications Insurance Mergers & Acquisitions Private Equity Trade & Commerce
Contact: Dr. Saud Al-Ammari Email: saud.ammari@blakes.com
Contact: Tel: +973 17102000 Email: julie.alexander@bakermckenzie.com
Contact: Scott Burrell Email: scott.burrell@blakes.com
NORTON ROSE FULBRIGHT (MIDDLE EAST)
TROWERS & HAMLINS
With a presence in Bahrain since 1979, Norton Rose Fulbright has a long-standing connection with the Ministry of Finance and the Central Bank of Bahrain, as the only legal practice that has advised on all the PPP infrastructure projects in the country.
Trowers & Hamlins client base includes financial institutions, public sector bodies, corporate undertakings, and private individuals. They handle complex cross-border M&A and private equity transactions, and regularly team up with London colleagues to advise on inbound UK deals for Middle Eastern clients.
Specialising in:
Specialising in:
Banking & Finance Construction & Engineering Corporate, M&A & Securities Dispute Resolution & Litigation Islamic Finance Projects & Project Finance Real Estate
Contact: Tel: +973 16500200 Email: joanne.emersontaqi@nortonrosefulbright.com
Banking and Finance Construction Corporate Dispute Resolution Employment and Pensions Energy and Infrastructure Housing and Regeneration International Private Wealth Projects Public sector / Local government Telecoms, media & technology
Contact: Tel: +973 17515600 Email: bahrain@trowers.com Gulf Insider July 2014
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Legal Bahrain
Insider Technology Spyware
CONVICTION OF CYBERCRIMINALS REMAINS
“A CHALLENGE” Online banking transactions through tablet or smart phone is safer as infection of a PC or laptop is higher.
I
nformation security “guru” Mikko Hypponen, Chief Research Officer of F-Secure and best known in the industry as the man who led a team that tracked down the authors of the first PC virus, has revealed that the main sources of cyberattacks are criminals, hacktivists and governments. As the keynote speaker on the third day of the Gulf Information Security Expo & Conference (GISEC) 2014, held at Dubai World Trade Centre (DWTC) last month, Hypponen further revealed that when it comes to criminals, the information security industry is more than capable of tracing and locating them. However, even after initially having these criminals detained, getting a sentence and putting them behind bars for their crimes remains as a big challenge. “We are able to find these guys but are unable to get them convicted,” Hypponen said as he identified some of the most serious malwares that these criminals use. These include Banking Trojans, Ransom Trojans, Credit Card Key Loggers, BitCoin Miners, DDoS Botnets and Clickfraud. As far as hacktivists are concerned, these groups only attack specific websites based on what a person or group advocates. On the other hand, governments like the U.S. infect
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Mikko Hypponen, Chief Research Officer of F-Secure
computers and smartphones for the purpose of surveillance. “The Internet has been turned into a surveillance machine,” Hypponen explained. “I can clearly understand the need for intelligence. But global blanket wholesale surveillance is something else. Just because something can be done doesn’t make it right.” He also revealed that the
“We are able to find these guys but are unable to get them convicted,” U.S. has filed charges against military personnel from certain countries for writing malwares.
Protecting PCs at home and at work
Meanwhile, Hypponen also advised that doing online banking transactions through an android operated tablet is
safer than through a PC or laptop. “The probability of infection of a PC or laptop is higher through the simple browsing of the web,” Hypponen said. “On the other hand, smartphones and tablets only get infected by downloading ‘trojanised’ apps.” In identifying some of the well-known malwares and viruses used by criminals such as Gameover Zeus – a Banking Trojan Cryptolocker – a Ransom Trojan, and Credit Card Key Loggers, he suggested some steps that home and business users can do to counter online criminality. “Firstly, you should constantly do backups,” Hypponen stressed. “You also have to make sure that your systems are always up-to-date, and that you have a dependable security software and firewall.” As far as corporates and businesses are concerned, Hypponen explained that theft from corporate accounts cannot be detected immediately. Thus, he strongly recommended that, “computers used to move money around must not be the same in doing something else”, referring to browsing the web or conducting social media activities. “Criminals target everyone,” Hypponen concluded. “They don’t care who you are or where you are.”
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Insider Technology Mobile
HEALTH DATA SERVICES
THE NEXT TREND IN THE CONVERGED BIG DATA REVOLUTION By Dushko Kantardjiev, Director of Technology Strategy & Control at VIVA Bahrain
H
ealth data has become the next big battlefield among tech companies as a new generation of wearable electronic gadgets and mobile applications allow users to measure heart rates, sleep patterns and exercise activities. Based on what we see in other industries, this is going to bring ongoing change and evolution. Whilst Google is developing a service, GoogleFit, that will combine information from health apps and personal fitness devices, Apple has announced Healthkit which will pull together data such as blood pressure and weight which is now collected by a growing number of healthcare apps on the iPhone or iPad. Samsung, of course, does not observe these trends from afar and they have launched a health platform
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for third-party application developers. All these activities bring medicine and health caretakers closer to patients, by assisting medical professionals to use the technical framework in an efficient and secure way and by educating patients about how to be more selfaware and become equal partners with their caregivers, especially in their virtual relationships.
TRENDS Below are some of the major trends in the health-care domain that will provide guidance for individuals, organizations, and medical practitioners for the health-care landscape ahead. These include popular and visible trends that represent the tip of the iceberg (like cloudbased fitness), as well as more specialised or conceptual developments that lie in the not-so-distant future.
Cloud-Based Wellness Wearable activity-trackers, online services, or mobile health solutions are the most accessible and visible currently. All lead to better results by including gamification in their design. Improving our health or making our activity more efficient can and should be fun by comparing or competing with ourselves or the like-minded and tracking the progress of the performance. Encouraging self-improvement plays a significant element in the stickiness. Examples include FitBit , Jawbone Up, Misfit Shine, Nike FuelBand, Samsung GearFit. All these measure and track some vital statistics of people such as heart rate, time and duration of daily activities and upload them to a personal cloud for review and personalized advise. Sport-inclined people have enjoyed such technologies for many years whether it is for running, cycling, swimming, skiing, mountaineering or any other sport that you can think of. Companies like Suunto, Garmin, Polar, CycleOps, Strava, Runtastic, SportyPal and many other provide solutions that will track your heart-rate, running, cycling, and swimming cadence (speed of footsteps, pedaling turnover or number of swimming strokes), speed, and many other in real time, and post activity in-depth analysis after the session gets uploaded in the cloud. Technologies such as BodyGuardian Remote Monitoring System, or Metria Wearable Technology, IPCS, or BodyTel are setting the stage to seamlessly deliver patient data to doctors. Three
Mobile Insider Technology
components are important to close the eco-system: sensing and fetching the data (through different wearable sensors), compiling the data (through smartphone applications) and interpreting the results (via SaaS - Software as a Service on the Internet cloud). The basis of the concept is that the application that resides on the smartphone of the end-user is being connected in real-time with sensor(s) via Bluetooth and enables (near) real-time tracking of different vital health parameters, wirelessly sending measured body values from patients to doctors or physical and virtual health advisors via the mobile data network.
Meaningful Use of Social Media Medical communication is something that affects all patients and medical professionals worldwide with no exceptions. This is one reason why social media has the potential to become a huge “digital brain.” It will become possible to transmit, share, crowdsource, and store pieces of medical information, either for e-patients or for medical professionals, if such social platforms are used properly. Digital medical communication is a potentially powerful tool, but balance is needed: e-patients cannot and should not break from medical professionals entirely and self-administer care and medicine. No matter how important a role digital will play in our lives, the human touch is and will always be the key in the doctor–patient relationship, and all benefits of the technology shall be used as a mean for facilitation.
BODY OF THE ICEBERG The body of the iceberg consists, however, of fundamental initiatives and concepts that define the framework for the cloud health-services domain. Below is the snapshot of the most relevant:
Digital Literacy in Medical Education - includes digital literacy in the official medical curriculum, e-learning platforms, telemedicine. Modeling Clinical Trials
- use microchips as models of human organs or whole physiological systems for testing of drugs or components without limitations, making clinical trials faster and even more accurate.
Digestible Sensors - are safely-swallowed digital devices and tiny sensors (incl. tiny video cameras) for gathering and storing data and transmitting body temperature, heart and respiration rates and others to an external device. Real-Time Diagnostics in the Operating Room - the intelligent surgical knife, iKnife, uses an electrical current to heat tissue to make incisions with minimal blood loss. The vaporized smoke is analyzed by a mass spectrometer to detect the chemicals in the biological sample. The device thus can identify whether tissue is malignant during an operation in real-time without need to send a biopsy to the pathology lab. Embedded Sensors - as an addition to digestible and wearable sensors; tooth-embedded sensors, for example, can recognize jaw movements, coughing, speaking, and even smoking. Imagine the same wireless technology used in organs providing real-time data from an artificial pancreas or constantly recording EEG. Semantic Health Records - enables access to own medical / health data which is stored in semantic databases which could generate alerts about upcoming medical issues and potential complications. Augmented Reality - represents live view of a real-world environment that is supplemented with computer-generated input, such as sound, video, graphics, or GPS data (think Google Glass or digital contact lenses). This technology enables livestreaming of operations form the surgeon’s perspective, and organizes live consultations. 3-D Printed Biomaterials and Drugs - more and more objects can
be printed with 3-D printers, and the biotechnology industry injects R&D into “printing” living tissues. Printing of cells or drugs might also not be far from everyday use. This capability will restructure the whole pharmaceutical industry and the world of biotechnology. However, regulation will be a huge challenge, as anyone will be able to print drugs containing patented molecules. Bionic ears and simpler organs will be printed at the patient’s bedside; printing transplantable human organs could eradicate waiting lists. Current technological issues such as the lack of available models and blueprints will be solved through crowdsourced and open-access databases from communities of designers. Gulf Insider July 2014
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Insider Business Properties
MIDDLE EAST:
The sovereign wealth funds poise for major impact on global property markets.
GLOBAL PROPERTY INVESTMENT TRENDS
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Properties Insider Business
M
iddle Eastern investors are expected to spend USD180 billion in commercial real estate markets outside of their own region over the next decade, according to the latest research from global property advisor CBRE. Global real estate markets have seen significant inflow of Middle Eastern capital with USD45 billion invested between 2007 and the end of 2013 – seven times the reported activity in its home market. With USD20 billion invested outside their home region in commercial property in the last two years alone – there is strong evidence that Middle Eastern players are increasing their interest and investment allocations to direct real estate. Middle East Sovereign Wealth Funds (SWFs) are now among the world’s largest and most influential sources of capital, accounting for 35 per cent of SWFs Assets Under Management (AUM) globally. When compared to Western and Asian SWFs, these funds currently allocate the smallest share (nine per cent of total portfolio) to alternative assets. A further increase in allocation by Middle East SWFs, even by a small fraction, represents an extremely large amount of capital that would have a significant impact on the global commercial real estate market. The average target allocation to real estate by global SWFs is 7.9 per cent. Applying this to the USD2.2 trillion in AUM held by Middle Eastern SWFs gives a total close to USD175 billion. CBRE has explored a range of scenarios, including faster and slower growth of AUM by SWFs; a conservative estimate puts investment in global real estate by Middle Eastern SWFs at USD130-140 billion over the next decade. Taking this figure with the expected spending of private Middle Eastern investors, as well as property companies and developers, equates to around USD180 billion that will flow cross-border and into global markets over the next ten years. Nick Maclean, Managing Director, CBRE Middle East, commented: “The ‘buy and hold’ strategy adopted by many Middle Eastern investors within their home region and the resultant lack of deal flow opportunities leaves much
unsatisfied demand here. Coupled with increased confidence in global markets and the need for diversification, overseas investment has grown strongly. “Since the Global Financial Crisis, SWFs from the Middle East have become one of the most significant sources of capital in the global real estate landscape.” Close to 90 per cent of all Middle Eastern commercial real estate investment outside of the home region in 2013 was in Europe. This is in sharp contrast to Asian capital that has become increasingly diverse geographically in the last 18 months. While there will be
The ‘buy and hold’ strategy adopted by many Middle Eastern investors within their home region and the resultant lack of deal flow opportunities leaves much unsatisfied demand here.
an increase in allocations towards the Americas and Asia Pacific regions, the majority (80 per cent) of direct Middle Eastern investment will target Europe as it offers diversification, cultural acceptance, high liquidity and market transparency. Around USD85 billion of the total allocation will be invested in the UK, with continental Europe expected to receive USD60 billion – almost five times the level of direct investment by Middle Eastern investors in the previous
decade. Germany and Italy are key targets with Spain, particularly the hotel sector, now a strategic destination. France has developed close ties with Middle Eastern investors in recent years and offers a vast choice of trophy assets, so will continue to attract strong demand for core product and sectors. Jonathan Hull, Managing Director, EMEA Capital Markets, CBRE, commented: “The vast majority of Middle Eastern investors are long-term players looking for wealth preservation and strong high income-producing assets, rather than opportunistic investors playing the cycle for shortterm gains. This strategy favours prime buildings in core markets and often very large lot sizes. Offices feature heavily in their acquisitions, while in the last couple of years there has been greater interest shown in retail and hotels, which extends from a historic focus on the hospitality sector in home markets.” While some increase in interest towards the Americas is expected, the need for Middle East investors to diversify away from US dollar-dominated investments will counteract the fundamental attractiveness of real estate as an asset choice. CBRE estimates that about ten per cent of the capital (around USD18 billion) will flow into the region. This represents an average annual investment of around USD1.8 billion, notably above the USD1.2 billion invested in 2013, which in itself was relatively high by recent standards. The diversification benefits that the Asia Pacific region offers could lead to a change in strategy for Middle Eastern investors. The number of deals completed in the region has been on the increase, but how quickly that interest will crystalize into a more robust pace of acquisitions, rather than a small number of large asset deals, remains to be seen. CBRE expects that the remaining ten per cent of the USD180 billion will be intended for allocation towards Asia Pacific.
The article is based on the CBRE Bahrain’s report published on June 18, 2014. For full report visit www.cbre.bh
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Insider Business Global Wealth
GLOBAL WEALTH 2014:
The latest report on the global wealthmanagement industry offers thought-provoking analysis of the current size of the market.
RIDING A WAVE OF GROWTH
T
he global wealth-management industry delivered a few surprises in 2013, as per the recent findings published in the Boston Consulting Group’s 14th annual report. Excellent growth did not always translate into higher profits. The mature economies of the “old world” and the rapidly developing economies (RDEs) of the “new world” continued to move at different speeds in general, but some developed economies performed extremely well, shifting the playing field. The global private financial wealth grew by 14.6 per cent in 2013 to reach a total of USD152.0 trillion. The rise was stronger than in 2012, when global wealth grew by 8.7 per cent. The key drivers, for the second consecutive year, were the performance of equity markets and the creation of new wealth in RDEs.
The World is Getting Richer The 36
growth
of
Gulf Insider July 2014
private
wealth
With a projected CAGR of 6.5 per cent, private wealth in the MEA region will reach an estimated USD7.2 trillion by the end of 2018. accelerated across most regions in 2013, although it again varied widely by market. As in 2012, the Asia-Pacific region (excluding Japan) represented the fastest-growing region worldwide, continuing the trend of high growth in the “new world.” But substantial doubledigit increases in private wealth were also witnessed in the traditional, mature economies of the “old world,” particularly in North America. Double-digit growth was also seen in Eastern Europe, the Middle East and Africa (MEA), and Latin America. Western Europe and Japan lagged behind with growth rates in the middle single digits. Looking ahead, global private wealth is projected to post a compound annual
growth rate (CAGR) of 5.4 per cent over the next five years to reach an estimated USD198.2 trillion by the end of 2018. Continued strong GDP growth and high savings rates in RDEs will be key drivers of the rise in global wealth.
Millionaires As the debate over the global polarisation of wealth rages on, one thing is certain: more people are becoming wealthy. The total number of millionaire households (in U.S. dollar terms) reached 16.3 million in 2013, up strongly from 13.7 million in 2012 and representing 1.1 per cent of all households globally. The U.S. had the highest number
Global Wealth Insider Business
14.6 %
The global private financial wealth grew by 14.6 per cent in 2013
of millionaire households (7.1 million), as well as the highest number of new millionaires (1.1 million), while the highest density of millionaire households was in Qatar (175 out of every 1,000 households), followed by Switzerland (127) and Singapore (100). Most of the GCC countries made it to top 15 in a ‘density of millionaire households’ category, with Kuwait ranked fifth (9 per cent), followed by Bahrain as sixth (5.9 per cent), while Oman, the UAE, and Saudi Arabia positioned tenth, 12th and 13th, respectively. In ‘ultra-high-net-worth (UHNW) households’ category – those with USD100 million or more – Qatar was placed sixth, immediately preceding Kuwait as seventh, while Bahrain secured 16th place. According to the report, UHNW households held USD8.4 trillion in wealth in 2013 (5.5 per cent of the global total), an increase of 19.7 per cent over 2012.
Regional Variation Strong equity markets helped countries in the “old world”, which have large existing asset bases, to match the rapid growth in assets in the “new world”, which relies more on new wealth creation spurred by GDP growth and high savings rates. Despite remaining tensions following the Arab Spring and the escalation of the conflict in Syria, private wealth in the MEA region increased by 11.6 per cent to reach USD5.2 trillion in 2013. Key drivers were generally high savings rates and continued strong nominal GDP growth in oil-rich countries, such as Saudi Arabia (13.4 per cent), Kuwait (13.6 per cent), and the United Arab Emirates (12.8 per cent). As in all other regions, equities were the strongest contributor. The amount of wealth held in equities rose by 30.5 per cent across major MEA markets, compared with 6.4 per cent for bonds
and 5.7 per cent for cash and deposits. With a projected CAGR of 6.5 per cent, private wealth in the MEA region will reach an estimated USD7.2 trillion by the end of 2018.
Global Overview Private wealth in North America rose by 15.6 per cent in 2013 to USD50.3 trillion, driven by the strong growth of wealth held in equities and moderate nominal GDP growth of 3.5 per cent. Positive factors included an improving job market in the U.S. and a stabilizing economic outlook in Europe. The subpar performance of private wealth in Western Europe – rising by 5.2 per cent to USD37.9 trillion in 2013 – partly reflected low GDP growth, which remained hindered by the lingering downturn in the euro zone. The strong performance of private wealth in Eastern Europe (17.2 per cent growth to USD2.7 trillion in 2013) was driven by increase of 21.9 per cent in Russia, boosted by international rather than local stocks. The solid nominal GDP growth in both China (9.6 per cent) and India (14.2 per cent), as well as high savings rates in those countries – 16.8 per cent and 19.2 per cent of GDP, respectively, were the principal drivers of private wealth in AsiaPacific (excluding Japan), which rose by 30.5 per cent to USD37.0 trillion in 2013. At constant exchange rates, private wealth in Japan rose by a modest 4.8 per cent to USD15.0 trillion in 2013. If the weakening yen is taken into account, however, private wealth in U.S. dollars was lower in Japan in 2013 than in 2012. Private wealth in Latin America continued to achieve double-digit growth in 2013, rising by 11.1 per cent to USD3.9 trillion. However, taking into account the currency devaluations in many Latin American countries, private wealth in the region declined in 2013.
The article is based on the “Global Wealth 2014: Riding a Wave of Growth” report, released on June 9, 2014 by Boston Consulting Group. For full article visit www.bcgperspectives.com
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Insider Profile Ali Al Saeed
ALI AL SAEED
WRITER, RECORD LABEL OWNER, AND BAHRAIN’S ART BOOSTER.
Y
ou are both a writer, and a founder of Elham Arts and MuseLand Records. How did you get involved in all of these? I’ve been into writing ever since I was a child. I wrote my first story, a little comic book, when I was eight. I also used to create these ‘fake’ magazines – I still have a stack of them in a shoe box somewhere. After I published my first book, I started meeting up with likeminded people and that’s basically how Elham was born. That was in 2006. It evolved into a big art movement, and people to this day bring it up, even though
we’ve stopped our activities for the past three years. A couple of years back, together with Faisal Shaikh, frontman of The Relocators, I created MuseLand record label which is now proving another success. You have published “The Randomist” a few months back. How did your audience respond to this rather personal novel?
It’s been heartwarming to hear how people could relate to the book. Bahrainis and expats would tell me that it reminded them of Bahrain they once knew, and that it was real. Someone wrote that the book made them both laugh and cry. That, to me, is the greatest compliment. How would you describe your writing style? Irrational. Reckless. If you had to choose one, what is your greatest passion in arts? It must be music. Even though I hardly play any instrument. My day revolves around music, hearing it, not making it. There is spirituality to music you can’t find in any other art form. At least I can’t. Does Bahrain have homegrown art scene to be proud of? I’ve often believed that what Bahrain has is unique in the sense that it is grounded in reality. It’s underground, it’s grassroots. That’s what we should be focusing on, instead of wasting time on trying to emulate others. It would be easy to say that the art scene is not supported enough, etc. But the truth is, it’s down to the artists. Stop relying on others and forge ways to create a selfsustaining art community. Should we be proud of where we are? Yes. Should we be content with it? No. What are the projects you are currently working on? My next book will be my second collection of short stories, hopefully to come out early next year. I would also love to work on developing a graphic novel, which hinges on finding the right illustrator to collaborate with. As for MuseLand and Elham, the most recent project is launching the fourth edition of our compilation album that features original music from local and regional bands.
Photo by Greg Bal 38
Gulf Insider July 2014
Smartphones Insider Technology
A NEW LUMIA SMARTPHONES – AN IPHONE REPLACEMENT? Hugh Haskell-Thomas reviews the very latest smartphone to hit the market.
t the beginning of June, Microsoft Devices launched the first Lumia devices running Windows Phone 8.1 here in the Middle East. “Lumia smartphones are growing in popularity across the region,” says Arto Nummela, Senior Vice President Microsoft Devices, India Middle East and Africa. “This new chapter in the Lumia story builds on the success of the Lumia 520 for affordable smartphones, and also brings new innovations at the high end.” In the recently launched range are the Lumia 630 (3G Dual SIM), 635 (4G) and 930 (3G/4G) models. The 630 and 635 are aimed at the affordable end of the price range, but still offer a great smartphone experience, with the Dual SIM 630 providing a great way to separate business and social interaction. The 930 has a metal shell which is slightly heavier than some of its competitors and clearly the flagship of the Lumia range. It packs a beautiful new 5” AMOLED screen, 20 Megapixel camera and all the standard applications we have come to expect, Microsoft Office, navigation, etc. The launch colours of green, orange and white, are bright, to say the least, and may take some getting used to – but they look great!
The Action Center, Word Flow and Senses applications are more personal than those offered by any other platform With the new Windows Phone 8.1 interface, Live Tiles provide updates at a glance, Office Mobile, Outlook Mobile, Windows Phone Hubs, and the entertainment experience. I particularly liked the Action Center, Word Flow and Senses that are more personal than those offered by any other platform. The recent acquisition of Nokia by Microsoft has brought together two industry leaders “Exciting times are ahead.” said Jon French, newly appointed Vice President for Mobile Devices in Middle East. We will have to wait and see what these two great teams will do to compete with the likes of Apple and Samsung over the coming years. If the Lumia 930 is any indication, we are all in for some surprises!
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Insider Feature Education
WILL CFA BECOME THE NEW MBA?
T
his month thousands of people around the world filed into examination centres to put themselves through the same agony: the CFA examinations at Levels I, II and III. Historical data suggest that more than half of them are likely to fail at each stage of their attempt. Those pass rates and the sheer complexity of what the students have had to study are beginning to confer a premium on the qualifications they receive. Indeed, some argue that students who have completed all three levels and won the right to put the three letters CFA after their names and be called a chartered financial analyst have an advantage over those with an MBA. “I think there might be a crossing point soon – I think the CFA in the financial industry might soon eclipse the MBA,” says Mark Shackleton, professor of finance and associate dean of postgraduate studies at Lancaster
40
Gulf Insider July 2014
A quarter of those who register to study for the CFA do not turn up for the exam. University Management School. Globally, a quarter of those who register to study for the CFA do not turn up for the exam, says Nitin Mehta, managing director for Europe, Middle East and Africa (Emea) at the CFA Institute. He says the programme of study is so arduous that many do not feel ready. “Only one in five people who start the qualification become CFA charter holders,” he adds. The small number who do pass all three levels contrasts with the experience on MBA programmes. While it can be very difficult to get
into a top-flight MBA programme, once accepted, students can be confident they will finish. “If people sign up for an MBA qualification, there’s an expectation that they are going to get through or be helped through,” says Prof Shackleton. The CFA qualification is also being helped by growth in the number of charter holders. There were 50,647 in 2003, the vast majority of whom were from the US. By 2013, that figure had more than doubled to 108,888 – more than a third of whom were from outside the US. The number is large enough to help the qualification gain traction but small enough to remain exclusive. By contrast, more than 1m people in the world probably hold an MBA. MBAs, it has been argued, do have the advantage when it comes to networking. Here, too, the CFA Institute argues that it can provide a valuable alternative. While study for the three levels is usually done on one’s own, after becoming a charter holder people have the option to join the institute – a global organisation that gives access to continuing professional education and opportunities to network individually and at the many events it organises throughout the year. Then there are cost considerations. Each stage of a CFA qualification costs about $1,000. There is an expectation that, despite the hundreds of hours of study recommended for each level, a person will be able to do it in their own time while in employment. By contrast, MBA programmes often require one to two years full-time study and can cost hundreds of thousands. In the end, educators suggest the choice should come down to your plans and what stage you are at in your career. Andrew Clare, professor of management at Cass Business School says if you want to build a career in finance, it might be a good idea to get a CFA and a master’s degree first. He says: “When you want to go into the management side, that’s when an MBA might help.” Mr Mehta agrees: “If I decided my true vocation lay in finance and investment, I might favour obtaining a CFA qualification first and then getting an MBA later, if I was going to go into management.”
Property Insider Business
REAL ESTATE INVESTMENT POTENTIAL FOR PRIME INTERNATIONAL HOT SPOTS RESIDENTIAL RETREATS
W
hile cities may have been the growth story for the last five years, it is likely to be the city getaway locations that show the best growth in the next five, says international real estate advisor Savills in Spotlight on Prime Residential Retreats. The widely invested and sought after hot spots of the Mediterranean, the Alps, South Africa and the Caribbean were hard-hit in the global economic downturn however 2013 marked a turning point with renewed appetite for leisure property purchases. There are three main drivers behind this recovery. As many prime city markets are becoming more fully valued, buyers are actively looking for alternative real estate markets in which to invest. Prime second homes in the most sought after locations are an obvious choice. Due to more liquidity in the market, investment is returning. Interest rates in Europe are low making overseas property loans more affordable (although lending requirements are more stringent than the pre-crunch era). Equity remains the main form of finance in the less established markets. Thirdly, some jurisdictions such as Portugal, Cyprus and Antigua, are offering ‘golden visa’s to real estate purchasers buying above a certain value. This is acutely boosting demand for resorts and retreat properties. Yolande Barnes, director, Savills World Research, says: “There are strong signs that the recovery which started in major world cities in 2009 is now rolling out to
the hinterland and boltholes inhabited during weekends and vacations by equity rich homeowners.”
The
French Riviera remains the most exclusive and desirable location for second homes and transaction volumes are starting to recover from a low base. An extremely limited pool of stock coupled with demand from buyers around the world means that the long term outlook for prices in this area are positive.
Golden opportunity in Spain and Portugal - After a long recession, there
are signs that the second home market is starting to look brighter. Prices for good quality second homes have fallen by between a quarter and a third from the peak of 2007 meaning that there are still some bargains to be had. In Spain, Ibiza has been the star performer where prices for the best villas in the best spots have recovered to their pre-peak levels. In neighbouring Mallorca, where supply is greater, the markets has remained repressed.
Italy’s international appeal - Italy has
avoided the oversupply seen in Spain and Portugal, however its residential market has struggled. The domestic market has been subdued and mortgages are difficult to come by, especially for international buyers therefore cash buyers dominate. There are some second home locations that have, against the odds, avoided severe price falls, and still attract high end international buyers, such as Venice, Lake Como and Tuscany.
The French Riviera
Income opportunities in the Alps -
The Alpine property market saw prices stabilise in 2013, following falls in 2012 and 2011. Both viewings and transactions increased in 2013, while both where up again – by 200% - in January and February of 2014. Switzerland’s status as a safe haven is an attraction from buyers around the world. Apartments are popular, particularly new build properties with a range of attractive offers such as proximity to the lifts, parking, ‘wellness centres’ and concierge services.
The
Caribbean’s turnaround Residential values fell by around 30% across the Caribbean during the North Atlantic debt crisis, but 2013 saw a return of buyer interest in the region’s second home market. Prices seem now to have bottomed out and transactions are beginning to pick up again. Buyer interest has grown in the most well-known and prominent islands. A dearth of new development during the downturn means that there is little or new supply and so off-plan sales have resumed in the most established markets. Even the sale of individual development land plots is showing early signs of a come-back.
Currency discounts in South Africa
- The Western Cape stands out of as one of South Africa’s most in demand locations for owning residential property,. A week rand puts international buyers in a strong position, having fallen 30% in euro terms, 23% to the US dollar and 24% on sterling since 2011. Gulf Insider July 2014
41
The Bahrain based lifestyle and luxury magazine with style and editorial flare that is enjoyed by affluent customers - both
Arab and Expats. Online edition at www.Bahrain-Confidential.com
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Lifestyle Insider Business
BILLIONAIRE LIFESTYLE
Airbus provides insights into billionaire buying habits Corporate jets are a lifestyle enabler.
activity into the air, because their wider, taller and more spacious cabins allow them to carry more people, in more comfort, than any other business jet,” points out Airbus Chief Operating Officer, Customers John Leahy. “Company executives, family groups and government delegations are more easily accommodated in Airbus corporate jets, because they provide the room for them to continue doing in the sky what they would want to do on the ground,” he adds. The study found that billionaires in the Middle East favour travel to Europe, including the Mediterranean, which can
Airbus corporate jets enable larger groups to take their business and social activity into the air.
W
ith the number of billionaires in the Middle East forecast to grow from some 150 in 2007 to around 220 in 2017, it is more important than ever for those doing business with them to have a greater understanding of their purchasing patterns. A new study[1] provides some new insights. One of the findings is that when billionaires travel, they want to take their lifestyle into the air, and that often
means travelling with an entourage – such as those looking after them and advising them on the ground - which already understands their needs and preferences. Giving wings to their lifestyle, whether it be work, rest or play, is important to billionaires because it helps them to make the best use of their time - as well as making their travel more comfortable. “Airbus corporate jets enable larger groups to take their business and social
be reached in flights of just a few hours. It also showed that differences in billionaires’ buying behaviour can be explained by variations in age, how long they have possessed wealth, and their geographic region. Billionaires in the Middle East have an average age of 61, for example, and tend to be focused on passing on their attitudes and values, as well as their wealth. The study also found that luxury still has a meaning for billionaires, but that it is mostly about having products and services tailored to their needs and making the best use of their time. Airbus offers a complete range of business jets, all derived from the world’s most modern aircraft family, comfortably seating 19 to more than 100 passengers.
Airbus Corporate Jets Billionaires study, carried out by Ledbury Research of London
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Insider Travel Hong Kong
HONG KONG LIVE IT, LOVE IT! By Redia Castillo
H
ong Kong is famous for its vibrant skyline and everexpanding neon-lit skyscrapers that showcase ambition and money. Well-known as a place for retail shopping pilgrimage, this bustling city also features lush-green mountains, beaches, and leisurely rural sceneries. It’s truly a place worth visiting, to experience its vibrant life and fall in love with the city’s splendor.
The Peak - A major tourist attraction and a must-go place if you’re on a short visit. The Peak offers spectacular and panoramic views of the cityscape and its harbours. Enjoy a tram ride on the funicular railway, from the bottom of the mountain up to Victoria Peak viewing deck. The tram station is usually packed and you have to be ready to stand in queue for a long time, though the location is also accessible by taxi and private cars.
PLACES TO SEE
Disneyland - Festival of the Lion King 44
Gulf Insider July 2014
Last month Redia Castillo was invited to experience the beauty and magic of Hong Kong on a media fam-trip organised by Cathay Pacific, in collaboration with Hong Kong Tourism Board (HKTB).
Disneyland
- This is the main highlight of our Hong Kong tour. Located at Lantau Island, this is where the magic happens, a mustsee place for kids and those who are still young-atheart. Allocate one or two full days for Disneyland. Some of the main rides we enjoyed are: the Jungle River Cruise, a guided tour of animated animals around Tarzan Island; the RC Racer, a breathtaking ride
back and forth on a 27-meter U-shaped coaster track; the Festival of the Lion King – we were captivated by this amazing live musical tribute to the life of “The Lion King,” with vocalists, giant puppets, vibrant costumes, and Cirquestyle acrobatic performances; and a visit to the magical Mystic Manor.
Symphony of Lights - Every night
at 8 pm, watch and be dazzled by magnificent display of synchronised music and building exterior laser lights show, featuring more than 40 buildings on both sides of the Victoria Harbour. The Guinness Book of Records holder for the ‘World’s Largest Permanent Light and Sound Show’, it is best viewed from Tsim Sha Tsui Promenade located between the Avenue of Stars and the Hong Kong Cultural Centre.
The Avenue of Stars - Stroll along Tsim Sha Tsui Promenade on the Avenue of Stars and find commemorative plaques, celebrity handprints, descriptive milestones, memorabilia of famous Hong Kong actors and actresses,
Hong Kong Insider Travel
HKTB - Symphony of lights and a life-size statue of famous actor Bruce Lee.
found some places to relax, enjoy the nightlife, and go people-watching.
Lok Cha Tea House - Savor local tea and food at Lok Cha Tea House located in Hong Kong Park. It offers several types of tea and a wide selection of vegetarian dim sum. The place provides a traditional Guangdong-style tea house ambience for diners.
Ozone Bar - Ritz Carlton Hotel -
SHOPPING Hong Kong is filled with shops; one can literally get lost shopping the whole day for a wide variety of items. Most of the shopping areas close at 10 or 11 pm so make sure you visit the places early enough.
Habour City – The largest mall in
Hong Kong is located alongside Victoria Harbour at Canton Road in Kowloon. I was intimidated at first to enter the mall seeing the neon signs outside, most of which featured the luxurious brands such as Louis Vuitton, Cartier, Armani, etc. However, it also houses variety of stores offering fashion, beauty, electronic items, jewellery, and more, which fit everyone regardless of age, culture, and financial background.
Ladies’ Market – This is the place to practice your haggling skills. Walk along Tung Choi Street of Mongkok District and you’ll find great bargains in a one-kilometer stretch street full of stalls with men’s and women’s clothing, accessories, electronic items, souvenirs, and more.
You’ve got to experience having a drink at the highest bar in the world, a skybar and lounge located on 118th Floor of International Commerce Centre (ICC). It has a semi-outdoor balcony section with the open roof where you can feel the breeze and enjoy an amazing view of the city.
Lai Kwai Fong - A vibrant street with clubs, bars, and restaurants, also called the party central of Hong Kong. We went to hard Rock Café and hopped to other bars which are literally located one after another. By midnight, the place turns into a street party where you can see people dancing on the streets and having fun.
GETTING AROUND The transportation during our stay was
WHERE TO STAY Marco Polo Hong Kong - We
stayed at the Marco Polo Hong Kong Hotel located in Canton Road, Tsim Sha Tsui at the waterfront next to Star Ferry terminal and Harbour City. The hotel rooms have an amazing view of the city’s skyscrapers overlooking Victoria Harbour. It is situated at the heart of the main shopping area at Kowloon and just adjacent to the largest shopping mall, the Harbour City. There are three Marco Polo hotels within Kowloon that you can choose from – Marco Polo Hongkong Hotel, Gateway Hong Kong, and Prince Hotel. All are located at a strategic place near the main shopping areas and tourist attractions.
Tel. +852 2113 0088 www.marcopolohotels.com
HOW TO GET THERE Cathay Pacific Airways - We flew with Cathay Pacific from Bahrain to Hong Kong, with a stop-over at Dubai, enjoying our time in a business class cabin – a perfect place to be seated for a long-haul flight. The service was great, the food was delicious, and the seats offered privacy and comfort with a fully-flat bed option. For those who do not have the budget for a business class ticket, but would still like some extra pampering onboard, the premium economy is the best option – available for a very reasonable price, as the airline offers promotional rate until the end of the year. The cabin has bigger legroom for tall people and is located between business class and economy section.
NIGHTLIFE Hong Kong is packed with interesting places for nightlife. After long day of sightseeing and shopping spree, we
arranged by HKTB. However, for regular tourists, one can purchase ‘Octopus Card’, a convenient payment method for an initial amount of HK$ 50/-. It can be used for transportation fares on busses, metro trains (MTR), trams, taxis, ferries, and even shopping at retail outlets – as long as you have enough credit on the card. Hong Kong boasts an excellent sophisticated public transport network, so it’s very easy to get around.
Business Class
Tel. +973 1722 6226 www.cathaypacific.com
Gulf Insider July 2014
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Insider Travel Advertorial
MONTRÉAL:
LEARN, EXPLORE, RELAX
M
ontréal is best known for its intriguing duality, with North American oomph weaving through romantic Old World. Multicultural and innovative, the city’s friendly residents give the visitors a warm welcome. Head to Montréal for a chance to explore its beautiful heritage buildings, make the most of its cultural scene, and simply enjoy its picturesque settings.
LEARN Notre-Dame Basilica This 350-year-old heritage gem is on a must-see list of everyone who enjoys the journey back in time. Recent discovery brought to light the fact that the church has been built on the ruins of the city’s first stone chapel of pilgrimage.
Vieux-Montréal – Old Montréal The oldest area in the city of Montreal,
46
Gulf Insider July 2014
Embrace both the old and new in Canada’s cultural capital and most lively metropolis.
with few remains dating back to New France. Very popular among tourists who enjoy strolling through the VieuxMontréal filled with shops, restaurants, and cafes. It’s not to be missed.
Maison Saint-Gabriel Museum The museum brings history alive, educating the visitors in an empirical way about the rich heritage left by the first settlers to New France. Among others, it features various aspects of rural life of the 17th century, and a garden recreated in the spirit of New France.
Bonsecours Market A century-old two-storey domed public market, one of Canada’s finest heritage buildings, welcomes over eleven million visitors each year. Situated in a close vicinity of Montreal’s popular tourist attractions, it features restaurants and boutiques offering a vast selection of crafts, fashions, jewellery, and more.
EXPLORE Montréal Botanical Garden As one of the largest botanical gardens in the world, comprising 75 hectares of thematic gardens and greenhouses, it features a huge variety of plants originating from almost every place on Earth.
Montréal Insectarium For those who don’t cringe on the thought of finding themselves in close proximity to all kinds of insects, the Insectarium is an interesting option, having overwhelming collection of species. It is the largest insect museum in North America and among the largest insectariums worldwide.
Montréal Biodome This is an utmost treat for nature lovers, offering recreated stunning ecosystems of American continents such as humid
Advertorial Insider Travel
WIDEN YOUR WORLD
WIDEN YOUR WORLD
WIDEN YOUR WORLD
WIDEN YOUR WORLD
tropical rainforest that remains warm despite Montreal’s harsh winter. It is a zoo, a botanical garden, and a nature museum all at once.
and outdoor, making it the world’s largest jazz festival.
RELAX
For the thrill enthusiasts La Ronde, the largest amusement park in Quebec, has over 40 rides and attractions, including the Goliath, one of North America’s highest and fastest roller coasters. It receives about 1.2 million visitors per year.
Just for Laughs Comedy Festival Montréal loves its festivals! The largest comedy festival in the world kicks off every summer, featuring some of the finest stand-up comedians, galas, street art, and theatre productions. Just for Laughs presents 1,600 performances, including 1,200 free outdoor shows to entertain over two million festival-goers.
Montréal Festival
International
Jazz
La Ronde Amusement Park
Turkish Airlines has added Montreal as its tenth destination in the Americas, offering three flights per week. To view the flight schedules visit www. turkishairlines.com, contact the call centre at +90 212 444 0849, or visit any Turkish Airlines sales office.
This event of over 30-year-old tradition brings together more than two millions fans of everything jazz. The concertgoers get to select from 1,000 concerts played at some 25 venues, both indoor
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Insider Business Interview
VLADIMIR DABBAH V ICE PRESIDENT GLOBAL SALES MARRIOTT INTERNATIONAL ME&A
Gulf Insider’s Agnieszka Piechoska discusses GCC travel market and more with Vladimir Dabbah, as he visits Bahrain on a sales mission.
M
arriott International executives from across the globe embark on a sales mission in Bahrain as we speak. What lies behind this
initiative? As part of the annual mission, a number of our General Managers and sales leaders from all the Marriott and Ritz Carlton hotels visit the entire GCC. For us it’s an opportunity to keep in touch with our customers in their own market, as opposed to waiting for them to come to our hotels. The scheme brings amazing results because it gives the true value of an actual face-to-face interaction. We believe in relationship building. With all the modern technology, still nothing can replace shaking someone’s hand and saying thank you. There are currently eight Marriott brands in MEA, out of 18 globally. What other new brands will enter Bahrain and GCC markets? We make every effort to develop the right product and work with the right ownership groups across the region. Only last April, Marriott made a
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very interesting acquisition by purchasing Protea Hospitality Group (PHG), based in South Africa, giving us a distribution of 116 hotels in nine new markets. This way Marriott nearly doubled its presence in MENA to more than 160 hotels, in addition to about 65 hotels planned to open in the region in the next four to five years. We will be welcoming a new addition to Marriott family in Bahrain, as JW Marriott is scheduled for completion in 2016. The 50-storey property will almost double our hotel room offering in the Kingdom. We also have Edition Hotel coming to Abu Dhabi within a year and a half. And very recently, we signed JW Marriott in Muscat, to be finalised in 2017. How do you see the current state of Bahrain’s travel sector? Bahrain has been a very good market for us, from both source and destination perspective. There is massive opportunity coming with close proximity to Saudi Arabia, and the financial sector in Bahrain, not to mention leisure opportunities. Capital investment in Bahrain’s travel and tourism sector is expected to rise 4.9 per cent per annum over the next ten years and Marriott’s focus on this market reflects these positive predictions. What are the GCC travellers like? GCC travellers are very avid, in a sense that most of them know what they want and they travel frequently. We do a lot of education on our behalf about the Middle East market, what makes it unique, and what’s important to Middle Eastern traveller. And I’d say the investment pays off. For many of our hotels, and not just those in the region, GCC tourists are the number one nationality. Marriott’s signature ‘personal approach’ concept fits in very nicely with the Middle Eastern culture. We’ve been here for quite some time and part of the reason is that we maintain that face-toface relationship with our customers, and appreciate the value that they give us.
For information on Marriott International hotels in Bahrain, visit www.marriott.com
INSIDER MOTORS
2015 Ferrari California T
Maserati Ghibli S
AUTOMOTIVE NEWS AND REVIEWS
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Insider Motors Car Review
Nick Cooksey interviews ...
EXCLUSIVE INTERVIEW
TORSTEN MÜLLER-ÖTVÖS CEO, ROLLS-ROYCE MOTOR CARS
I
am in Goodwood, England, to visit Rolls-Royce Motor Cars. They have kindly collected me from Heathrow Airport in one of their cars. My residence for the next few days is Amberly Castle, a delightful English country hotel built within the ruins of an ancient castle and surrounded by private grounds containing lakes, gazebos, and a field containing Lamas!
The next day, over breakfast, I get chatting with a friendly Australian businessman also staying at the hotel. He’s visiting the nearby Rolls-Royce factory to discuss options for the Wraith he’s buying. I learn that many customers like to visit the factory to plan their dream car with the Rolls-Royce Bespoke team, who will happily arrange for a chauffeur driven Rolls-Royce to collect them from
Special centennial edition Rolls-Royce Ghost built to celebrate when in 1913 four Rolls-Royce cars completed the Alpine Trial - the landmark test of automotive endurance of the day, performing without fault and establishing the legend for being the ‘Best Car in the World’.
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the airport, whether it be London’s Heathrow about two hours away, or the nearby airfield where customers will often arrive in their own private aircraft. When I latter visit the factory for myself I am impressed with the way the buildings blend into the surrounding Sussex countryside. This is no accident, the company has gone to great lengths to display their green credentials to the extent that the entire factory roof is covered in grass! Within, skilled engineers take time carefully building super luxury cars likely to still be on the road long after they have passed away - 85% of all RollsRoyces ever built over the past 110 years still exist! I am given a full tour and learn how much care is taken to select the perfect woodwork and leather so only the very best is ever used. I speak with the man who hand paints the coach lines and meet his young female apprentice, one of the few people he feels has the latent talent necessary to learn his skills. I view the cars, in various states of completion, meticulously being prepared for their future owners. I am impressed with all I see.
Car Review Insider Motors
When I eventually meet Torsten Muller-Otvos he greets me with an outstretched hand. He wears an immaculately cut suit and looks fit and relaxed. I begin by asking him what he most loves about his job. He smiles and replies that it’s the sheer variety of activities involved, that he loves travelling the world meeting interesting people, from heads of state to rock stars, who are his customers. He loves being involved in the production of something so special, the intense attention to detail, the buzzing atmosphere of the factory, the people he works with, and hosting dinners for Rolls Royce owners; “an excellent way to learn what owners really want”. Torsten’s management style is straightforward. He says he’s always going the ‘extra mile’ and expecting those around him to do the same. He is obsessive about customer service and writes a thank you letter to every new customer that includes his personal contact details along with an invitation to feel free to contact him at any time.
Torsten Müller-Ötvös speaking with Gulf Insider’s Nick Cooksey
Yes, Rolls-Royce are exploring options for entering the luxury SUV market, but as yet no decision has been made. So what makes Rolls-Royce the world’s leading super-luxury automobile and how does he go about maintaining that position? He says he believes there are no direct competitors to RollsRoyce, whose customers typically are in the lucky position to be able to spend between fifteen and thirty million pounds a year on themselves. These are the type of people who will also purchase fine art, private helicopters, and Swiss chalets. Despite such clear success, is there anything he wishes BMW had done differently since talking our management of the brand in 1998? He thinks for less than a second and replies that the chosen home of Goodwood is perfect, and he would not have changed anything about the model sequence, which started with the Phantom 2; “the best car in the world”. It was a full eight years of purely focusing on the Phantom and its variations before
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Insider Motors Car Review
the company felt the time was right to launch the smaller Ghost. And now they have the Wraith. He believes that the combination of British craftsmanship with BMW technical expertise and support has resulted in an “unbelievably successful recipe”. What does he predict for the future for the super-luxury automobile segment? His view is that luxury is becoming more informal and family friendly. He believes luxury SUVs are the next logical step. Also, that new electric technologies will greatly grow in importance. And yes, Rolls-Royce are exploring options for entering the luxury SUV market, but as yet no decision has been made. RollsRoyce are very sensitive to their brand image and would, he assures me, only endeavor on such a venture if they were certain it fitted with that image. Torsten confirms that a Wraith Drophead is being considered and various options are being explored, but the order books are currently full for the current model so don’t expect any such version within the next two years at least. What plans for the Middle East? Torsten recognizes that the Middle East market is very special for Rolls Royce, with many longstanding and loyal customers. This is reflected in 17% overall growth in the region last year with further growth expected for 2014. The UAE is the third biggest volume country in the world after the US and China - unbelievable when you consider the UAE has a population of only 6 million compared to a combined population of nearly 1.4 billion in the case of the other two countries! He recalls; “when I was recently in the Gulf, a very senior Arab and loyal Rolls Royce customer of long standing congratulated the company on the Wraith, assuring me we had, to use his words; “hit the nail on the head’ with the launch of this model. He adds that the Wraith is also proving popular with women who are starting to purchase more into the brand which was once a near all male preserve.
Newly finished and ready to be delivered to it’s lucky owner.
The Middle East market is very special for Rolls Royce, with many longstanding and loyal customers. I ask what he believes have been the biggest changes he has made since heading the company. His immediate reply; overseeing the tripling of production and boosting capacity while
maintaining quality, boosting the dealer network, and improving the company’s marketing. It’s easy to look around the beautiful Rolls-Royce factory in the heart of the English countryside and take the success of this historic and iconic brand for granted, but in the late 1990s things were very different. RollsRoyce faced shrinking order books and was losing money fast. It’s a credit to BMW’s management expertise that things have turned out as they have. Due to a combination of technological and engineering excellence combined with smart marketing and exceptional customer service, the brand is now both hugely successful and fully self-financing.
Middle East statistics: Sales are up 17% in the Middle East for 2013 compared to 2012 The Middle East region comprises 20% of global volumes for the company Abu Dhabi is the leading market in the GCC (and the world) and has the world’s largest Rolls-Royce showroom while Dubai has just launched the most advanced Rolls-Royce Aftersales Centre in the world. The Middle East includes three out of the top four markets globally for RollsRoyce - Saudi Arabia was the second biggest market in the world last year, and Dubai was 4th Highest growth in the world for the Phantom is in Middle East – 45% in 2013 compared to 2012 Last year Rolls-Royce Motor launched its first dealership in Lebanon. Bahrain is a growing market and last year grew 22%
The author of this article, Nick Cooksey, in addition to being publisher of Arabian Magazines, is a jury panel member of the Middle East Motor Awards. 52
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Car Review Insider Motors
NEW BENTLEY
CONTINENTAL GT V8 S
A
vailable as both a coupe and convertible, the new GT V8 S models offer lowered and retuned sports suspension, sharper steering, and dramatic ‘S’ signature styling cues. Building on the success of the acclaimed Continental GT V8, the new GT V8 S models feature a more powerful version of Bentley’s high-efficiency 4-litre, twin-turbo V8 engine developing 521 bhp (528 PS / 389 KW) at 6,000 rev/min and an immense peak torque of 680 Nm (502 lb.ft) at a mere 1,700 rev/min. The GT V8 S dispatches 0-100 km/h in 4.5 seconds onto a top speed of 309 km/h.
While the elegant coachwork of the Continental GT is inspired by iconic Bentleys of the past, its modern, sculpted design, with crisp, highly defined feature lines, is formed using advanced body construction techniques, achieving class-leading standards of quality and body integrity. The cabin of the Continental GT
provides supreme luxury with soft-touch leathers, wood veneers, polished metals and deep-pile carpeting, hand-crafted in Bentley’s workshops at the factory in Crewe, England. Customers may tailor the specification of the GT V8 S by selecting from a range of optional equipment. The optional Mulliner Driving Specification features 21-inch 7-spoke Black Edition wheels, drilled alloy foot pedals, a ‘jewel’ filler cap and a cabin trimmed in diamondquilted, perforated leather with indented headlining. Other key options include Mulliner dark - tint front and rear lights and Beluga gloss door mirrors to match the Lower Body Styling Specification.
For further information contact AHMED ZAYANI & SONS W.L.L. Tel: +973-17238822
The GT V8 S dispatches 0-100 km/h in 4.5 seconds onto a top speed of 309 km/h.
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Insider Motors Car Review
2015 FERRARI CALIFORNIA T A
trip to Tuscany to test the latest stallion to be launched from the Prancing Horse’s stables was an evocative experience that provided an insight into the engineering prowess of the team at Ferrari and, I am sure, left a few terrified Italians in this driver’s wake! Following the launch of the 458 Speciale, Ferrari has recently unveiled the 2015 California T, its new Sports Tourer. Two cars from the same stable could probably not be more dissimilar; however, can the new California deliver that magical Ferrari experience, so present in the rest of the range? The iconic F-40 was the last Ferrari to use forced induction, suffering the challenges of turbo lag and poor throttle response, never able to deliver the smooth power curves or sound of the traditional naturally aspirated Ferrari engines. However, the effort that the engineers have gone to to ensure that
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Front-engined, turbochargers, V8, respectable boot space, a Ferrari, really? Gulf Insider’s intrepid Hugh HaskellThomas finds out - and gets into trouble for driving too fast!
the two twin-scroll turbochargers and 3.8 Litre engine combine to present a power unit with almost no lag whatsoever, collaborating to deliver a staggering 552bhp and 557 lb-ft of torque that push the car onto a top speed of 316kmh via its 7-speed dual-clutch transmission. With launch control, the car will hit 100kmh in just over 3.5 seconds which sounds incredible when completed inside a tunnel in the Tuscan hillsides! This exhaust note, another focus of the engineering team, was achieved by adding a tuned exhaust to a complex web of equal length manifolds to provide the evocative Ferrari sound even with the turbos, the latter almost unnoticeable other than some wastegate chatter as you change up at the 7,500 redline [grin]. Despite being front-engined, with its rear mounted transmission, magnetic dampers and carbon-ceramic braking system, the pads and discs (incredibly projected to last the entire life of the car),
the handling is precise and predictable. The rear became a little skittish, when pushing over 250kmh and I wished a spoiler would pop out and sit the car back down on the road. Though with all respect, the bumpy country roads slicing through the beautiful Siena landscape were never designed for these speeds. A quick chat with the Ferrari Engineers at lunch time provided a solution to this, leaving the car in sports setting but altering the damping to ‘Bumpy Road’ – a much needed piece of advice, if only it had been at breakfast! A particular joy was to discover that even when all of the computer assistance is turned off, the car never truly ignores what is going on. Coming across a pair of fairly crazy roadside hedge cutters at a ridiculous speed, standing on the amazing brakes, the computer fires back to life and kicks down through the gears to ensure you stop in time; brilliant and somewhat relieving!
Car Review Insider Motors
In the design department, the looks of the new California T far exceed the older model. A combination of Ferrari and Pininfarina designers have worked their magic to produce a sleeker more menacing design. The swept back front light clusters and smiling grille are highlights as is the aggressive rear diffuser. The boot is a little high, but they had to leave some room for the folding roof and luggage; it’s a Tourer after all! The interior has also had a complete makeover, the focus being on the steering wheel, now an F1-Like control center (there are now no stalks at all), and the Human-Machine-Interface (HMI), dash mounted screen to most of us, providing two focal points for controlling almost all aspects of the car and the amazingly
loud sound system; though why anyone would want to listen to Linkin Park when you have a Maranello orchestra two meters behind you is beyond me. The collapsing roof, Retractable Hard Top in Ferrari speak, is both amazingly fast (14 Seconds) and serves to transform the car from a sleek touring coupe to an open top roller skate! Even with top down there is ample room for luggage and, with some clever dropping panels, even skis or a golf bag; Ferrari have clearly thought about the car’s potential buyers, 70% of the over 7,000 cars built per year, will be first time Ferrari owners; they will not be disappointed. So, having drooled over most aspects of this amazing car, where are the gremlins? Well, the HMI screen is angled perpendicular to the dash and not tilted towards the driver, difficult to see at the best of times, at speed and with the roof down, almost impossible. Equally, the Navigation System is not quite finished
California T will be one of the first cars in the world to use Apple’s new CarPlay system. yet, admitted by the Ferrari Test Drivers, as it is not fast enough, nor are some of the directions provided in the right order. However, at launch the California T will be one of the first cars in the world to use Apple’s new CarPlay system, which should resolve these performance issues, if not the ergonomics. Another challenge is the fuel consumption, at pace and at best, even with the weight reductions, turbochargers and aerodynamic lines, the car proverbially drinks fuel. Although
consumption is much better than its predecessor and not an issue in the Middle East, when pushing extremely hard through the Italian countryside to reach another beautiful Tuscan village, we almost managed to drain the 8o litre tank in just 160 kilometres; so keep the credit card handy for those long trips! Having said all of the above, with the roof down, flying through the beautiful Tuscan countryside at over 280kmh, I got told off by the trip organisers, but praised by the test drivers [another grin] it is clear that Ferrari is on to a winner with the new California T. An exhilarating 2+2 with sports car looks and almost race car performance and handling. Thirsty, yes, a little back end happy, yes, but despite the engine in the front, turbochargers and boot space, it most definitely performs, looks and sounds like a Ferrari. Well done, I want one!
For your own test drive in Bahrain contact EuroMotors on 17 750 750 Gulf Insider July 2014
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Insider Motors Car Review
MASERATI
GHIBLI S M
asarati say their target is to sell 50,000 cars this year, despite selling only 6,200 cars last year. Yeah right - we shall see! Anyway, this new release is an important part of their plan for increasing their range to be able to make such massive inroads into the international luxury sports car market. The new Ghibli is basically a shortwheelbase, slightly lighter version of the Quattroporte. Its construction is similar to the Quattroporte and it shares the same drivelines and suspension, though the interior is different.
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Nick Cooksey tests the latest edition to the Maserati range. Ghibli (pronounced “gib-lee” - named for the Italian word for hot desert wind) has great curves - and a great engine beneath the curves. The model I drove had a subtle, rather attractive champagne paintwork (I’m sure Maserati call it by another name). I was given the sportier of the two models available – the “S” has just over 400 horsepower compared to the standard 345 horsepower. Both models have twin-turbo 3.0-liter V-6s mated to an eight-speed auto gearboxe. Maserati engines are finished at the Ferrari factory by robots in a dust free room – I know this because I went to
the Maranello factory and watched the operation from the other side of the glass, and very impressive it was. Inside the Ghibli the cockpit design is uncluttered and uncomplicated. The dash is dominated by a TFT touch screen that operates all sorts of stuff including seat heaters and the rear-window-shade control. But before you can do anything, even adjust the cabin temperature, you must “accept” the lawyer warning on the screen – a sign of the times, I guess. There’s a Maserati clock in the middle of the fascia and the center console has lots of storage space. There’s a spacious 18-cubic-foot trunk, but there’s not much rear leg room for anyone sitting in the back. You can switch on the engine remotely so the AC can cool down the car before you get inside – great for the summer. For most of my drive around the highways of Bahrain I took manual control using the steering column’s paddles. I found this to be a lot more fun than driving in automatic which was noticeably less responsive by comparison. Well, that was until I put it into sport mode which gives the car a
Car Review Insider Motors
You can switch on the engine remotely so the AC can cool down the car before you get inside – great for the summer. more aggressive ‘personality’ and locks out eighth gear. Achieving zero to 100 kph in 4.5 seconds, the more I drove the Ghibli, the harder I found myself driving it and the more fun I was having. This car is designed to be driven hard, which bearing in mind its evocative brand image, it should be. When I finally dropped the car back to the dealership, I was smiling.
To arrange your own test drive in Bahrain contact Euro Motors on +973 17 750 750
Specifications Engine: 3 liter twin-turbo DOHC 24-valve V-6 Power: 404 hp @ 5500 rpm Torque: 406 lb-ft @ 1750 rpm Zero to 100 kph: 4.5 seconds transmission: 8-speed auto + manual shift mode
The author of this article, Nick Cooksey, in addition to being publisher of Arabian Magazines, is a jury panel member of the Middle East Motor Awards. Gulf Insider July 2014
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Insider Motors Car News
CAR NEWS
EURO MOTORS
Unveils Jaguar F-Type Coupé Euro Motors unveiled Jaguar F-Type Coupé on June 17th, during an exclusive evening event held at the Ritz-Carlton Hotel. The unveiling showcased the 3.0-litre V6 supercharged model, which will be available exclusively at the Euro Motors showroom in Sitra with prices starting from BD 30,000.
INFINITI AND Y. K. ALMOAYYED & SONS
Advertising Feature
Launch Ramadan Promotion with On-Road Prices on Infiniti This Ramadan, connoisseurs of luxury and performance are in for a treat. Coinciding with the advent of the holy month of Ramadan, Infiniti has launched its special offers, valid until July 30th, in association with Y.K. Almoayyed & Sons, its exclusive distributor in Bahrain. In addition to the on-road prices across Infiniti models, the customers can avail special offers for finance, service, and accessories. “For those who are seeking to upgrade their drive with peerless luxury and intuitive technologies, there has never been a better time to enjoy the iconic Infiniti experience. This Ramadan, we are offering unbeatable and inspiring prices across the Infiniti line-up in Bahrain, starting from BD 10,995 for the Infiniti G25,” said Paul Baker, GM at Y.K. Almoayyed & Sons. Infiniti’s line-up in Bahrain includes luxury sedans and coupes such as G sedan, Q50, Q60, Q70, and crossovers, as well as SUVs such as QX50, QX60, QX70, and QX80.
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“The Infiniti G25 sedan represents 30 per cent of the overall Infiniti sales in Bahrain. It has a great fan-following among the smart elite,” Mr Baker said. The Infiniti G Sedan comes with a 2.5-litre DOHC 24-valve V6 engine that produces 218 horsepower at 6,400 RPM. The G25 Sedan has a standard 7-speed automatic transmission with adaptive shift control and manual shift modes that offer sequentially selectable Manual Gearshifts and Downshift Rev matching. The promotion can be followed on Infiniti’s social media channels including Facebook and Twitter, or on the brand’s website www.infiniti-bahrain.com During Ramadan the Infiniti showroom in Sitra will be open from 9:00 AM to 1:00 PM and 7:30 PM to 11:30 PM from Saturday to Thursday, and from 7:30 PM to 11:30 PM on Fridays. Customers can either visit the showroom or call on 17732732 to arrange a test drive of their favourite Infiniti model.
Car News Insider Motors
EURO MOTORS
Launches All-New BMW 4 Series Gran Coupé Euro Motors welcomed on June 4th the allnew BMW 4 Series Gran Coupé to its showroom in Bahrain. The car combines the sleek look of a two-door coupé with the functionality provided by four-doors. The range of additional options includes fine leathers for the interior, exclusive wood trims, special door sill finishes, and unique exterior colours.
BENTLEY CONTINENTAL GT3-R Bentley announced the rarest and most dynamic member of the esteemed Continental family of Grand Tourers with the arrival of the new Continental GT3-R. It is inspired by the new Continental GT3 race car that stormed to victory at the second round of the Blancpain Endurance Series at Silverstone, the first UK race for Bentley for 84 years. Blending proven track and road credentials, the Continental GT3-R is limited to just 300 examples.
ALL NEW 2015 TOYOTA YARIS HATCHBACK Ebrahim K. Kanoo B.S.C. launched the All New 2015 Toyota Yaris Hatchback on May 31st, at the Toyota showroom in Sitra. The new model gives off a sporty design with a unique “Catamaran Roof” and L-shaped headlamps, and is powered by a 1.5 L, 107 HP and a 1.3 L, 84 HP engines.
ROLLS-ROYCE WATERSPEED FOR BAHRAIN Euro Motors, the sole dealer of Rolls-Royce Motor Cars in Bahrain, has confirmed that it has been included within a select list of dealers across the globe to offer the ultra-exclusive and Bespoke Waterspeed Collection. With only 35 Phantom Drophead Coupés set to be produced in the Collection world-wide, Bahraini ultra-luxury automobile aficionados now join exclusive international community able to place an order for what is an inspired nod to a unique and storied racing heritage.
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Insider Fashion Interview
DESIGNER SPOTLIGHT:
DANIELA KARNUTS
Bahrain’s fashion scene welcomed last month the red carpet-rocking pieces from Safiyaa, and Gulf Insider’s Agnieszka Piechoska had a chance to take a look at brand’s AW14/15 collection.
Agnieszka Piechoska speaks with Daniela Karnuts (on right)
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Interview Insider Fashion
T
he next season haute couture evening wear by Daniela Karnuts’ Safiyaa continues this classy brand’s dedication to meet the needs of its loyal clientele – powerful and confident women who know their style, choose their own trends, and believe that great looks should never compromise on comfort.
The designs, even patterns, are handmade in-house, using the most luxurious and wearable fabrics. “Our offering in every store is very different,” Ms Karnuts said, “You will not find the same dresses here at Saks Fifth Avenue Bahrain, as at Fifty One East in Doha, or Boutique 1 in Dubai.”
The Powerful Women
Behind the Scenes German-born Ms Karnuts has come a long way since she transitioned from successful career as Fashion Rocks Group’s Commercial Director into a new venture as a globally recognised high-end designer. With no formal training in fashion industry, she took the world by storm. “I was always very passionate about fashion. I often struggled to find the clothes I was looking for, so I decided to create my own dresses,” Ms Karnuts told us in an exclusive interview. The sophisticated designs caught many eyes and before long, Ms Karnuts began selling her garments to private clients under own brand Safiyaa, named after her daughter. She then launched her debut collection of 12 dresses, which was immediately picked out by Dubai’s Boutique 1. A successful sale was followed by expanding collections, until it reached 70 styles for the upcoming season. From what initially was meant to be a personal wardrobe, Safiyaa became a fully-fledged business with own atelier and 14 couture tailors.
Haute Couture Safiyaa garments are sold selectively at luxury boutiques and department stores around the globe, and to private clients, including a large circle of customers in the Middle East.
I want my clients to feel the most attractive and confident. The dress is for the woman, not the woman for the dress. It should accentuate her, and not overshadow.
The classic, elegant pieces are perfect for women whose daily routines include both corporate meetings and high-class social events. The signature stretch fabric makes the dresses comfortable, yet very flattering. So it is truly multi-tasking wardrobe. In Ms Karnuts’ words, she designs for “confident, powerful women that are demure and styleconscious, but not so much trend-focused”.
The Collection Safiyaa AW14/15 collection emanates hues of dark blue, pine grove, and charcoal, with accents of yellow and Chester red, both in shine and matt finish. We saw a lot of clear symmetric lines, cut-outs, and rough edges. Intricate metal-coated French laces, a compelling theme of this collection, really draw your attention. “Patterns are a big feature in the upcoming season,” Ms Karnuts told us, “But because we don’t do prints, I used lace for print-like effect, with Ottoman tilesinspired design.” The concept turned out to compliment really well the signature Safiyaa blend of classic 1940s and 1950s couture with a seasonal fashion angle to it.
Safiyaa AW14/15 collection is available at Saks Fifth Avenue in Bahrain City Centre. For more details call +973 17 2000 or visit www.safiyaa.com Gulf Insider July 2014
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Insider Luxury Watches
MUST HAVES
MEN’S STYLE PICKS LUXURY TIMEPIECES MÉTIERS D’ART HOMMAGE À L’ART DE LA DANSE By Vacheron Constantin Dance class
Model: 86090/000G-994
Stage Performance Model: 86090/000G-994
Available at: Bahrain Jewellery Centre Limited edition - For prices call Tel. +973 1752 0053 62
Gulf Insider July 2014
Hi-Beat 36000 GMT by Grand Seiko Model: SBGH001G Price: BD 2,225
Available at: Ambassador Stores Tel. +973 1722 5513
Rehearsal
Model: 86090/000G-9943
Oman Insider Sail
OMAN SAIL
BREAKS RACE RECORD
O
man’s flagship MOD70 campaign, Musandam-Oman Sail, smashed the Kiel Week Welcome Race record from Kiel to Eckernforde on Saturday, completing the 27.5 nautical mile sprint in one hour 47 minutes and 22 seconds beating the previous record held by SAP Extreme 40 which was two hours six minutes 50 seconds. The 70ft multihull lined up against an impressive 127-strong fleet on the start line in a light 10knot breeze that built to a stonking 20 to 25knot northwesterly as the fleet raced away from the crowds. The mixed European and Omani team onboard the Sultanate’s flagship, led by Irish offshore sailor Damian Foxall, were delighted with the result. Team member Mohsin Al Busaidi, who set his first record when he became the first Arab to sail around the world in 2009, said: “The nice thing about a record is that it lasts a little bit longer than just a result! Breaking the record with an almost 50% Omani crew on the MOD was very special. We had a really good race”.
Musandam Oman Sail crew members
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Insider Art Photography
A
lisdair Miller spent two hours climbing the Burj Khalifa - the world’s tallest building, to capture the incredible pictures showing a spectacular view of
Dubai. Mr Miller, 42, said: ‘I was with a team that inspects the building for any maintenance that needs to be done. ‘This does happen everyday due to the scale and height of the building. To get to the top is no easy task, and it takes nearly two hours. ‘The elevators stop almost three quarters up, then at this level you start to climb steel stairs and ladders. ‘Around 100m meters from the top you have the needle to climb which is the most demanding part. ‘My camera bag had to be hung from a rope below me due to the narrow intersection parts. Your arms and legs feel as if they are on fire.’ Mr Miller, a creative director for an advertising agency in Dubai, described the climb as ‘mind blowing’. ‘Because it was so hot and how fatigued we were getting up there, we only stayed at the top for half an hour as the trip down is just as hard. ‘Looking down at all these miniature skyscrapers and dots of people was mind blowing. ‘As soon as I looked over the edge I could hear my heart thumping and my hands were shaking.’ The married dad-of-one from Dubai also captured a lightening strike in his home city.
IT WAS WORTH IT
FOR THE VIEW! Man climbs world’s tallest skyscraper to take stunning pictures resembling something out of a sci-fi film of Dubai’s futuristic-looking landscape. 64
Gulf Insider July 2014
Photography Insider Art
He continued: ‘This lightning storm lasted ten minutes. I had seen the storm in the distance and I immediately got my kit and raced to this particular location. ‘When the strikes happen, the noise and the white light just sends tingles up your spine - but the rain soon followed and I got absolutely drenched!’
Photographs by : Alisdair Miller / Solent News
Gulf Insider July 2014
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Last word
USA v CHINA
L
et’s remember, this hypothetical war wouldn’t necessarily be anything like what we have seen before; it could be waged with little more than cyber-hacking, satellite-blinding, and a few long-range missiles--which could be enough to establish military dominance. The conservative pundit David Goldman argued recently that the most under-covered story of 2013 was China’s strategic rise. China’s technological capacity is reaching critical mass. In a few years we will see the old China of smokestacks and cheap labor fade into the past and a new high-tech China emerge, ready to compete with the West. There’s no single technological feat that defines this development: China doesn’t need to innovate, only emulate. But the combined effect of a whole array of technological improvements adds up to a daunting challenge to the West. Here’s more of Goldman’s analysis: China’s shore-to-ship missiles can sink a U.S. aircraft carrier 200 miles or more from its shores China now has the most industrial robots of any country China now has the world’s fastest supercomputer Beijing Genomics Institute has the world’s largest DNA sequencing capacity ‘Starting from almost no live surveillance capability 10 years ago, China equaled the US’s ability to observe targets from space for some real-time operations.’ (World Security Institute)”
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Gulf Insider July 2014
So we might take these data points and fast-forward them a decade or two. That is to say, we could multiply Chinese ambition and technology--including all they have stolen from the West, and quickly see that the Chinese are formidable. Indeed, if we extrapolate out present trends to a decade or so from now, we can presume that America will have made even more “progress”--in the fight against climate change, “sexism”, “homophobia”, and “racism”. If these are, indeed, US top national priorities,
While the US frets over sexism, racism, and homophobia, China grows stronger. we might look ahead and see a new power-ratio, in which Chinese muscle dramatically eclipses that of America. Some optimistic Americans, on the political right as well as the left, seem to believe that the US can indulge in anything, and ignore everything, and still remain the world’s richest and most powerful country. The lessons of history, and the merest of common sense, could tell those optimists that they are wrong. Meanwhile, Americans who worry
If the US ended up in a war with China in 5 or 10 years, who would win? about the economic and strategic fate of the US would do well to peruse a 2012 book, Producing Prosperity: Why America Needs a Manufacturing Renaissance, published by the Harvard Business Review Press. The co-authors, Gary P. Pisano and Willy C. Shih--themselves both Harvard Business School profs: “For decades, Americans were comforted by the party line that although other countries were becoming more competitive, our ace in the hole was our ability to innovate and dominate the most advanced industrial sectors”. Yet instead of such “What, me worry?” idiocracy, Pisano and Shih deliver some stone-cold truth: “This characterization no longer represents reality. Other countries now hold the lead in products such as flat-panel displays, advanced batteries, machine tools, metal forming (castings, stampings, and cold forgings), precision bearings, optoelectronics, solar energy, and wind turbines, Furthermore, US dominance of biotechnology, aerospace, and, high-end medical devices, and other advanced sectors is under threat... A combination of company strategies, management thinking, and government policy has led to the gradual erosion of the country’s industrial commons”. The stakes involved are enormous. This kind of de-industrialization process can play out over decades. If, in the end, the ‘manufacturing does not matter’ hypothesis proves wrong - the United States will have a big problem on its hands.
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