Gulf Insider

The multi-award winning Arabian magazine

The Arabian Review

Issue 112

MIDDLE EAST Leading hotels review

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Doha’s new mega airport

PRIVATEPUBLIC SECTOR TANGO What it means

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for Bahrain

FROM ACTION TO ART Inside...

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Gulf Financial Insider

Contents

May 2014 more inside...

Cover Story

18

PRIVATE-PUBLIC SECTOR TANGO What it means for Bahrain

52. Car News

Car Reviews and News

22

36

Bahrain Winners

Rupert Hogg

Bahrain

Interview

24

38

Saudi Conference Examines Sukuk

Doha’s New Mega Airport

Saudi Arabia

28 Dubai

Can Dubai Become the Capital of Islamic Economy?

Qatar

40

Middle East

Market Review: Hotels

50. Men’s Fashion Massimo Dutti

34

Abu Dhabi

Residential Property Market

48

58. Motoring

Yousif al Thawadi

Photography – Syed Sohail Ali

Profile

Mercedes-Benz GL500

62. Art

The Arabian Review

Comment...

Publisher & Editor in Chief - Nicholas Cooksey Admin & Finance - Nikesh Pola

The richest man in Asia is selling everything in China

Business Development - Redia Castillo

Li Ka-Shing, the richest person in Asia, has a net worth in excess of $30 billion, much of which he made being a shrewd property investor.

Layout Designs - Dhanraj S Photography - Shareef Panhatt - Redia Castillo

He was investing in mainland China before it became the thing to do. Now, Li wants out. Since last August he’s been selling his Chinese holdings and sold his final holding just last month. He now no longer has any property investments in mainland China.

Contributors - Melissa Nazareth - Hugh Haskell-Thomas - Rogier Van Zaventer - Ramzy Baroud - Nicholas Cortes - Redia Castillo - Phil Darby - Mohammed Alshoaiby - Bill Dally - Agnieszka Piechoska

So what does he see that nobody else seems to be paying much attention to?

Simple - China’s credit crunch. After years of unprecedented monetary expansion the Chinese government has been desperately trying to reign in credit growth.

The shadow banking system alone is now worth 84% of GDP according to an estimate by JP Morgan. The IMF pegs total private credit at 230% of GDP, jumping by 100% in the last few years.

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

Historically, growth rates of these proportions have nearly always been followed by severe financial crises. And Chinese leaders are doing their best to engineer a ‘soft landing’.

If they’re successful, the world will only see major drops in global growth, stocks, property, and commodity prices. If they fail, the spillover could become pandemic.

Published by:

There are implications for the entire world. Plus China could imperil the entire global financial system by dumping a portion of its US Treasuries to defend the Yuan.

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

You’d think that a major credit crunch with far-reaching consequences in the world’s second largest economy and largest manufacturer would be constant front-page news.

Printed at Awal Press, Kingdom of Bahrain.

But it’s not!

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 112

MIDDLE EAST

Leading hotels review

QATAR

Doha’s new mega airport

PRIVATEPUBLIC SECTOR TANGO What it means

KSA

Euromoney Conference examines sukuk

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.

 Access to valuable GCC news reported by the international media thanks to a free weekly email service for readers.

FROM ACTION TO ART

Visit www.Gulf-Insider.com

NEW SEC TIO N!

Bahrain Grand Prix through the lens

Inside...

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.

Gulf Insider now also includes:  Easy to navigate website that offers online access to the magazine and much, much more.

for Bahrain

Cover Image: Syed Sohail Ali

LATEST CAR REVIEWS AND NEWS

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For Middle East news updated daily visit

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Registered as Gulf Financial Insider with Ministry of Information approval no. TFI-431©. No part of this publication may be reproduced in any manner without the written permission of the publisher.

All Rights Reserved. Views expressed in this magazine are not necessarily those of the publisher. *Articles by these correspondents are the copyright of Telegraph Media Group, 111 Buckingham Palace Road, London SW1W 0DT, England.

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Send your views to info@Gulf-Insider.com Are Journalists Safe?

The multi-award winning Arabian magazine

The Arabian Review

Issue 111

DUBAI

World’s 7th most expensive city

GCC

Market outlook

AFGHAN WAR ... Human faces

INNOVATION IN GCC ECONOMIES

MINI COOPER vs VW GOLF R

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Inside...

…and in the Bahrain economy

For Middle East news updated daily visit

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The multi-award winning Arabian magazine

The Arabian Review

Issue 110

Also inside

Bahrain/India Relations

A lot has been spoken and written about the safety of journalists globally. I must have been a teenager when I watched the movie about how Irish journalist, Veronica Guerin was shot dead. It is a story of how courage was betrayed by corruption and left a deep impact on me. Recently a Pakistani journalist’s car was shot at on its way from the airport to the studio. Also, the French journalists who were released had been held hostage for 10 months in Syria. These people do so much to bring out the truth so that we, the common man may make well informed choices and protect our rights and our-selves. What are we as a society doing to protect them? Are we betraying their sacrifices with our indifferent attitude? It would be great if Gulf Insider runs an article on this topic.

Caitlin, 27 years, Writer based in Dubai

New ties; new opportunities

BMW 6 Series 650i review

Photography Accolade

High Net Worth

Super Yachts in Dubai

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The multi-award winning Arabian magazine

The Arabian Review

Issue 109

BAHRAIN

Ladies First Dear Editor, thank you for putting together such a bold and intelligent magazine month after month. I really enjoy reading Gulf Insider, both the magazine and your website; the website is very well updated with the latest news from the region; kudos to you and your team!

I noticed that most of the content in your magazine is targeted towards a male readership. There are a lot of thinking women in Bahrain and the Middle East. It would be great if you run features on business women’s fashion, women entrepreneurs and achievers and the likes.

Gulf Insider has noticeably changed its look and content and I love it!

The layout and design is commendable as are the photographs that you use in your features. I particularly liked the images in ‘Human Faces Behind Afghan War’ last month; the pictures actually speak to you! Good job!

Thank you for your kind consideration!

Raul Baylosis, 40 years, Graphic Designer

Jenna, 31 years, Sales Manager

Sara Al Shaikh, 31 years, Entrepreneur

The Art of Hatred Iran’s “Down with America” competition (GI’s April issue) might seem quite offensive to most of the straight thinking people out there, regardless of their political inclinations.

I however choose to find it hilarious, as it goes way beyond me and I’m worried that my common sense might be lost if I try to comprehend the idea.

ME’s #1 economically free country - official

QATAR

Real Estate Report

EGYPT

Demoralized Tourist Industry

Would you like to be a PUBLISHED Photographer?

If your photos of Bahrain and the region are good enough, they could be published in Gulf Insider/Areej/Bahrain Confidential magazines. Each month we publish the most impressive images we receive and give full credit to the photographer.

OBJECTS OF DESIRE

Images must be at least 1mb and can be e-mailed to submissions@ArabianMagazines.com with the subject ‘PHOTO’.

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Bahrain

NEW’S ROUND-UP

Why Is Kuwait Falling Behind?

The Guardian Apologizes To Dubai’s Sheikh Mohammad Over False Claim The Guardian has published an apology to the UAE Vice President and governor of Dubai, Sheikh Mohammad bin Rashed al-Maktoum, for claiming that his office had placed an advertising with an Italian fashion agency for the recruitment of a number of female assistants to help in shopping during a trip in Europe.

The Guardian amended its article and added a footnote saying: “UAE vicepresident and prime minister and ruler of Dubai Sheikh Mohammed’s office has contacted us to confirm that no request, or authorization, for recruitment of assistants related to travel has been made by the palace or his office. We are happy to clarify that and apologize.”

The amended version of the article states that “a wealthy Dubai sheikh is scouring Venice for a small army of female assistants to help him spend his cash.” It did not however identify who the Sheikh is.

The Guardian’s story doesn’t however explain why the newspaper didn’t contact the Sheikh’s office for confirmation or denial before publishing the story. – AL ARABIYA 8

Gulf Insider May 2014

With a youthful, well-educated population, strong relationships with both neighbours and world powers, and a strategic location on the Gulf, major oil producer Kuwait should be as dynamic a hub for the region as Dubai or Doha.

But while others in the Gulf have powered ahead, attracting foreign investment and developing infrastructure, Kuwait has stagnated, frustrating the people of a country once seen as a Middle East trailblazer.

This frustration is especially evident among young Kuwaitis, cosmopolitan and often educated abroad, who complain of bureaucratic red tape and dysfunctional politics, but also acknowledge complacency among their fellow citizens.

Kuwait’s system of government handouts and well-paid, comfortable state jobs also blunted calls for change, whether in politics or in the state-reliant economy, observers say.

Sandwiched between Iraq and Saudi Arabia, the country is one of the world’s richest per capita, and more than half of its 1.2 million citizens are under 25.

Kuwait’s leaders point to political deadlock in parliament that makes it difficult to get things done. But many observers say the government’s frequent personnel changes, layers of bureaucracy and general ennui are also to blame.

One thing that infuriates young Kuwaitis on a day-to-day level is how much easier it can be to do business in other Gulf countries – even next door in deeply conservative Saudi Arabia.

“If I need to go to a government department, I cancel my whole day because I know I will spend the whole time there,” said Shawaf, 24, who set up his company Dolsten in late 2012. – ZAWYA

HSBC Bahrain and Gulf Air Join Forces Again Offering Value Added Travel Incentives HSBC and Gulf Air have recently renewed their agreement to provide their mutual customers with an enhanced value-added travel experience through a joint promotion, which will be valid until 31st December 2014. The offer entitles all HSBC credit cardholders to a ten per cent discount on both Gulf Air Falcon Gold class and Economy class, when they book their tickets through Gulf Air’s official website (www.gulfair.com). In addition, HSBC credit cardholders can avail 30 per cent discount when visiting Gulf Air Falcon Gold lounge at Bahrain International Airport. Mr Esam A. Hameed AlHammadi, Gulf Air Country Manager Manama Sales Office, and Ms Shakofa Asghar, HSBC’s Head of Retail Banking and Wealth Management, both expressed their pleasure in renewing the joint value-added partnership.

Business News

India’s Pain Is UAE’s Gain – Indian Expats Buy Up Gold Jewellery If any nation is happy about India’s gold import curbs it is the UAE, where bullion traders are registering brisk sales given the restrictions on the import of the precious metal in India.

The curbs on gold in India have raised demand for gold and diamond-studded gold jewellery among expatriate Indians and visitors from India to the UAE. “The UAE’s gold trade has become the de facto beneficiary of the Indian government’s tough stance on domestic consumption. There is almost a 16% difference on a per gram basis, in buying gold ornaments in the UAE as compared to buying gold in India,” said an official at a store in Dubai’s gold souk.

The UAE is the top destination for gems and jewellery out of India, with volumes totalling at $14.37 billion last year, followed by Hong Kong at $9.86 billion, and the US at $4.79 billion. – MINEWEB

Dubai Cost Of Living Rising At Highest Rate Since 2009 Rising housing and food prices have pushed Dubai’s inflation rate to the highest since 2009, with the cost of living in March up 3 percent on the year before.

Housing and utility costs, which account for almost 44 percent of consumer expenses, were up 4.8 percent, and rose 0.4 percent month-on-month in March, Reuters said, quoting data from the Dubai Statistics Center.

The cost of food and drinks also rose 4.8 percent from a year earlier and gained 1.2 percent from a month earlier.

Inflation is now at the highest level since August 2009, the year the global financial crisis caught up with Dubai and brought state-owned Dubai World and its subsidiary Nakheel to a debt standstill.

Property rents and purchase costs have risen dramatically in Dubai as the local economy bounced back from the economic downturn.

Dubai has had the largest rise in annual property values globally, with an increase of 21.7 percent, the London-based property consultants Knight Frank said in September.

Dubai To Build Largest Ever Expo Site Dubai is to build the largest ever Expo site at Jebel Ali Dubai World Central (DWC) ahead of hosting the event in 2020 at a cost of between $2-4bn.

And Cynthia Corby, audit partner, construction industry leader, Deloitte Middle East, revealed ‘secondary infrastructure spend’ will be upwards of $8bn, and will include construction opportunities in the transport, hospitality, retail and commercial sectors.

She said: “With Dubai winning Expo 2020 we will see renewed confidence in the already improving construction industry. In a market that relies upon confidence and optimism, this is a much-needed stimulus to create momentum for a renewed development and economic cycle.”

It is estimated that up to 30% of the potential 300,000 jobs created by Expo 2020 will be in the construction sector.

The government has also announced that all new and existing construction projects are going to be fast- tracked to be ready for 2020.

However, Jesdev Saggar, managing director, Infrastructure and Capital Projects, Deloitte Corporate Finance Limited, urged a level of caution as the Emirate continues its recovery from the economic crisis that enveloped the world in 2009.

– CONSTRUCTION WEEK

Samsung Digital Printing Solution Launch Universal Enterprises have launched the latest photo copiers and printing devices from Samsung into the Bahrain market. This was through a launching event last month at the Crowne Plaza Conference Center in Manama.

Visit Gulf Insider May 2014

9

News Business

UAE Salaries Set To Grow Faster In 2014 The 2014 edition of “Employment and Salary Trends in the Gulf” revealed that 2014 will be a year of stronger employment growth and higher salary rises. The report showed that Saudi Arabia was the leader in job creation in 2013, with 62 per cent of companies increasing their headcount last year. The kingdom was followed by the UAE and Kuwait.

GulfTalent’s survey also found that across the GCC, more companies expect to increase their headcount in 2014 compared with last year, with 75 per cent of companies in Qatar to create jobs this year. The positive development is primarily due to the execution of major infrastructure projects gathering momentum, partly in preparation for the 2022 Fifa World Cup. This is followed by companies in Saudi Arabia and the UAE, with 63 per cent and 57 per cent of companies looking to create jobs, respectively. Even companies in Bahrain are showing signs of improvement in job creation as the political situation stabilises further: 30 per cent of companies expect to increase their headcount, compared with only nine per cent in 2013.

Broken down into sectors, healthcare topped the table with 80 per cent of companies having created jobs in 2013, driven by heavy government investment in the sector and more countries making health insurance mandatory for employers.

According to the survey, telecom and retail sectors competed for second position.

Hospitality and retail will dominate job growth in 2014, with 61 per cent of companies in the hospitality sector planning to increase their headcount. Fifty-seven per cent of firms in

Bahrain To Limit Rent Hike To 5% The Bahraini parliament has approved legislation to cap rental increases at 5 percent a year.

The new maximum is half the current 10 percent allowed.

Rents across the Gulf have been rising amid a recovery from the property recession that hit in 2009-10.

Steve Mayes, director of sales and agency at real estate consultancy firm CBRE Middle East, welcomed the move, which he said demonstrated the “the government of Bahrain’s far-sightedness.”

“The recent rental cap announcement is an important piece of regulation that seeks to limit future volatility in the Bahrain markets. Without it we could potentially expect to see rents rising above an affordability limit, and so affect Bahrain’s competitive environment,” Mayes added.

The legislation requires the approval of the Shura Council and King Hamad bin Isa Al Khalifa.

– ARABIAN BUSINESS

10

Gulf Insider May 2014

the retail sector will create jobs, driven by the region’s rapid population growth and increasing penetration of retail outlets in more remote locations.

Across most of the GCC, private-sector salaries are forecast to rise at a faster pace in 2014 compared with the previous year.

Oman, where employees are expected to enjoy an average pay increase of eight per cent, leads the field. Saudi Arabia has the second-highest rate with a projected average increase of 6.8 per cent, followed by Qatar at 6.7 per cent and the UAE at 5.9 per cent. Kuwait and Bahrain are forecast to have the region’s lowest salary increases — projected at 5.8 per cent and 3.9 per cent, respectively. While the salary increases are higher than the previous year, they continue to be below the levels seen before the global financial crisis.– KHALEEJ TIMES

Dubai Rent Rises ‘Unsustainable’ Housing rents in Dubai are rising by “unsustainable” levels – something that may push more and more tenants to relocate to the northern emirates a new study has said.

Average annual apartment rents for new tenants in Dubai increased by 5 per cent over the three months to the end of March while villa rents rose 3 per cent, property broker Asteco reported today.

Asteco brokers reported that rents in International City and Jumeirah Lakes Towers rose by the highest amounts during the first quarter of 2014, both increasing by 11 per cent to Dh50,000 and Dh105,000 for one-bedroom apartments.

Rents in Dubai Marina also increased by 10 per cent during the three months to the end of March, the company said to stand at an average of up to Dh140,000 for a one-bedroom flat.

At the same time rents for villas at The Springs rose 13 per cent during the period to stand at Dh220,000 for a three bedroom villa.

“This continued rise in rents could herald the start of a flight to affordability for budget sensitive Dubai residents, who may well consider relocating to Sharjah, Ajman or further afield in the Northern Emirates,” said John Stevens, the managing director of Asteco. – THE NATIONAL

News Business

National Group National Group’s newest venture, Update Advertising, was launched during the Food & Hospitality and Health & Wellness Expo last month.

Gulf Hotel Bahrain appoints Zaher Kassir as a director of Business Development and Strategy The Gulf Hotel Bahrain added a new member to the executive management team, as the hotel appointed Mr. Zaher Kassir who holds Lebanese nationality as a Director of Business Development and Strategy, where he will be working under the direct supervision of the Gulf Hotel’s General Manager.

The General Manager of Gulf Hotel Bahrain Mr. Rahim Abu Omar said, “The appointing of Mr. Zaher Kassir lines with the hotel’s plan of development and modernization of the local and international Hospitality market researches as he has more than 15 years of experience in sales and marketing and proved through his career that he has a professional vision through his continuing studies to the needs of the tourism and hospitality market strategies.”

12

Gulf Insider May 2014

General Director of TRA Bahrain Receives Award for Leadership Excellence General Director of Telecommunications Regulatory Authority (TRA) in the Kingdom of Bahrain, Mr. Mohammed Bubashait has received the Leading CEO for Excellence award at the 11th Leading CEO awards ceremony, which was organized and presented by the Middle East Excellence Awards Institute in Dubai.

The Institute has conducted over 20 years of research and field studies in government and private institutions to identify the best achievements in management and honor leaders and i n s t i tu t i o n s that have been able to bring about change and contribute to building organizational excellence.

Liam Farrell, Director of Branding Unisono

Unisono Wins International Accolade Bahrain based Unisono received its fifth REBRAND 100 Global Award for its work rebranding Arab Link, a subsidiary of Abu Dhabi Islamic Bank, UAE. The REBRAND 100 Global Awards are one of the highest accolades in the branding industry, annually recognising the world’s 100 best strategic and creative projects.

Unisono was again awarded top honours for both its strategic and creative brand repositioning solution, ranking in the top 25 out of 100 global rebrand projects recognised by the program. Having received five prestigious REBRAND 100 Global Awards in just four years, the independent consultancy is recognised as one of the best branding agencies worldwide.

News Business

School In UAE Held 15 Pupils Hostage Till Parents Paid Overdue School Fees An investigation has been launched following claims a private primary school in the United Arab Emirates held 15 of its pupils hostage until their parents paid their fees.

The children, who are pupils at Nibras Al Iman School, in Sharjah and are seven and eight years old, will give evidence to a three member committee next Monday at a hearing which is expected to take two days.

An investigation is to be carried out following claims the school held 15 pupils hostage because they had not paid their fees.

The alleged incident came to light after the mother of a girl being held called a radio station in Sharjah and told them what had happened.

She said she was not allowed to take her daughter home until she had paid the school fees which were late.

The committee investigating the allegations will be made up of two education zone officials and one person from the legal affairs section.

A Palestinian mother accused a school in Sharjah of banning her son from getting on the school bus unless his fees were paid.

Meanwhile a Jordanian mother Mariama Saleem, whose son was banned from using a school bus, told The National that her son, 10, that a member of staff goes into each class and reads the names aloud of all the children whose parents have not paid.– DAILY MAIL

14

Gulf Insider May 2014

Obama “Stupid And Short-Sighted” On Bahrain – Former US Ambassador The United States has not done enough to support the Bahrain government since the Gulf state was beset with Arab Spring demonstrations three years ago and the handling of the crisis by President Barack Obama’s administration has been “stupid and s h o r t - s i g h t e d ”, a former US Ambassador to Bahrain told Arabian

Business in an interview.

Joseph Adam Ereli, who served as US Ambassador to Bahrain from June 2007 until June 2011, has been a harsh critic of Washington and the Obama administration’s policies in the Gulf State.

“I would like to make clear I am not a fan of US policy towards Bahrain right now. I don’t think the United States has been supportive enough of the government.”

Ereli said he believed Washington had “pulled an Egypt” in Bahrain, referring to what he believes was the Obama government’s failure to properly support Hosni Mubarak, the former Egyptian president and long-standing American ally, who was removed from office three years ago during the height of the Arab Spring movement.

“I mean, we have not acted as faithful and steadfast to partners who are a strong, trusted ally. The reason I think we have pulled an Egypt is because I mean we threw Hosni Mubarak under the bus in a very unseemly way.”

“My take is that it is a very difficult situation for everybody. The government wants justice and peace and responsible governance and I think different parts of the population want reform at different speed and reconciling all those different demands or expectations is complicated and challenging and frustratingly difficult.”

His replacement in Bahrain, Thomas C. Krajeski, was recently heavily criticised in an official report by the US Department of State for having “a reactive ‘seat of the pants’ leadership” and for not nurturing relationships with key government officials.

“I think the current ambassador is carrying out US policy, like all ambassadors do,” Ereli said without addressing Krajeski specifically. Instead he reiterated his criticism of the Washington administration and calls on them to do more to support the Bahrain regime in its hour of need.

“I think what America should be doing is standing foursquare behind the government and behind the king, because that is the political centre of gravity in Bahrain and it is the indispensible element to the solution and so second guessing, doubting or undermining the government is wrong.

“I think we’ve totally botched our approach and relationship with the opposition… We have made things more difficult… and that’s I think is what has contributed to the difficulties there.” – ARABIAN BUSINESS

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Understanding risk and diversification in your portfolio is essential, says Barings Understanding risk and diversification in your portfolio is essential, Barings  Barings’ annual study of the bestsays and worst performing asset classes shows European

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AndrewAsset Cole, Barings Investment European equities, top New performer in by Baring London, 23 April the 2014: research Management (Barings) intothe thedata bestcarefully and worst performing 2012, continued to outperform in 2013. Manager, comments: “Returns in both Not surprisingly, gold was the worst asset classes over the past seven years shows that European equities, the top performer in 2012, continued to and we feel investors However, American equities by North America Europe in 2013 were intoperformer London, 23North April 2014: New research Baring Assetand Management (Barings) the best last andyear worst performing boosted by investors prepared to will to has become more reached the in top spot,However, which weNorth believe outperform 2013.

American equities reachedbeing the top spot, which we need believe beenmuch driven by fearful asset classes the past seven yearspay shows that European equities, the top 2012, continuedcommodity to before weinsee this particular higher multiples for the given level of performer has been drivenover by continued economic continued economic growth in the US withearnings. good employment data,prepared strongerto retail sales, a to recovery in house prices favour.

They reached have been do return growth in theinUS withHowever, good employment outperform 2013.

North American equities the top spot, which we believe has been driven by “Currently we continue to see data, stronger retail sales, a recovery and improvement in consumer confidence.this as confidence about the economic continued economic in the USinwithoutlook good employment data,ofstronger retail sales, a recovery prices world ongoing growth in in house the developed on both sides the Atlantic in house prices andgrowth improvement and expect these economies to grow improved even though actual earnings consumer confidence. and improvement in consumer confidence. at or that above trend inremains 2014, which Theresearch research reflects the for 2013 were constantly revised lower.

The also also reflects the improving environment in Europe, however it is clear volatility in a means “The story in Japan is a little different that inflationary pressures should be improving environment in Europe, number of major asset classes,remains with manywhere of the best and worst performingwere assets changing dramatically from one abated forvolatility the moment.

Equities however it is clear that volatility earnings expectations The research also reflects the improving environment in Europe, however it is clear that remains in a remain constantly revised one higher, though the preference and wewith expect in a number major(see assettable classes, with The year to theofnext below). study provides explanation why our multi-asset investing an them number classes, with manymarket of the best and worst performing assets changing dramatically fromother one asset to perform better than derated through that process many of of themajor best asset and worst performing unrestricted mandate to dynamically moveasinto and out of asset classes has found classes favour with investors looking to but not at the same nervousness the economic assets one year tochanging the nextdramatically (see tablefrom below).

The study providesabout one explanation why multi-asset investing withlevels an as we witnessed in 2013. ” outlook in Japan impacted valuations. year to the next (see table below).

The achieve their targeted returns with less volatility than investing in equities alone. unrestricted mandate to dynamically moveWe into outoptimistic of asset on classes has found favour with investors looking to areand more the economic study provides one explanation why outlook for Japan than the consensus, multi-asset investing with an unrestricted achieve their targeted returns with less volatility than investing in equities alone.

Source: Baring Asset AssetManagement Management 31.12.13.

Figures above for the asset shown in sterling total terms. return As terms.

Source: Baring asas at at 31.12.13 . Figures above areare for the asset classclass shown in sterling total return at As theofend each calendar the at end eachofcalendar year. year.

1 are for the asset class shown in sterling total return terms. As at Source: Baring Asset Management as at 31.12.13. Figures above

16 Gulf of Insider May 2014 year. the end each calendar

1

Business Private-Public Sector

PUBLIC - PRIVATE SECTOR

PRIVATE-PUBLIC SECTOR TANGO WHAT IT MEANS FOR BAHRAIN

By Nicholas Cortes

E

conomists have a habit of making everything sound complex although invariably, the world itself, has become a more complex place. But in the macroeconomics scheme of things, old JM Keynes, who died in 1946, still carries the pilot light when it comes to dealing with booms and busts.

Permit me to put the macro JMK view, alas rather crudely.

In times of busts, governments should use fiscal and monetary means to stimulate their economies by creating a demand for employment. Often this means “pumping money” into vast infrastructure programs, so that the salaries of new workers go into buying coffee, Coke and corn-flakes, consuming, so stimulating services and industry to produce more, and employ more, who in turn spend more, etc, etc.

It is a principle graphically illustratively by the term, “bathtub multiplier;” all that ‘liquidity’ sloshing around and spilling over into other parts of the economy, so stimulating growth.

Then, as growth picks up, governments ‘recoup’ their stimulatory investment through increased taxation revenue, fees and duties. So the community is better off, thanks to new infrastructure, which in turn stimulates furthers economic multipliers.

And if governments don’t have the funds to splash out on stimulatory projects, why borrow it and repay the debt when the money comes rolling in, and reduce spending.

Indeed, stimulatory packages have been instrumental in getting much of the interconnected world economy back into very modest growth following the contagion of the 2008 Global Financial Crisis, through, in part, the broad Keynsian model deployed by Presidents Bush and Obama.

Now, in many countries where governments undertook similar monetary and fiscal strategies, investment is returning, albeit with a cautionary, over-the-shoulder look.

And some of those governments want the Private Sector to do the front running.

This is so especially where governments which have accrued significant debts as a result of borrowings to fund pump-priming initiatives and hope furtively, that the Private Sector will take up the economic slack by investments of its own, and financing new job creating projects.

Or by selling off to private operators, those previously sacrosanct “Government institutions,” such as postal services, transport systems, waste management and 18

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Private-Public Sector Business

With ‘cheap labour’ as a key factor in any labour intensive investment, such as the construction industry, there is not much leverage for labour market reform.

utilities, which “everyone knows,” were once the very foundations of the Public Sector.

And the driver in most of these government hopes, has been the need to service an almost constantly growing government debt, much of it brought about by generous welfare payments to its citizenry, and in the administration of public services..

Bahrain is no exception. The Minister of Finance recently conceded that the level of subsidies, (presumably in conjunction with free health care and educational costs, unpaid utilities debts, and aviation losses, coming particularly at a time of slow or negative investment growth) is simply unsustainable. The increasing public debt ceiling level, which last year rose by over 40%, is also unacceptable to the Parliament.

The GCC $10 billion aid fund for Bahrain following the destabilizing events in the wake of the February 2011 disturbances, have undoubtedly brought some stimulatory relief, but will only be sustained if it brings with it, a good measure of structural reform, greater productivity efficiencies and a security situation conducive to attracting more widespread foreign investment.

With ‘cheap labour’ as a key factor in any labour intensive investment, such as the construction industry, there is not much leverage for labour market reform. This is despite some foreign embassies and Human Rights groups’ calls for a minimum wage and changes to the “Free Visa” scheme, both of which would considerably add to operating costs. Unions remain weak and in all likelihood, wage structures will remain low.

The ‘slashing of red tape’ has been much promised over many years, and each such new mention is met with a rolling of eyes, although there has been a welcome increase in the availability of on-line government services heralding some greater efficiencies.

Much is also being done under Bahrain’s “Look East” policy, and there have been Head of State visits to India, China and Thailand while

there have been visits to Bahrain at Head of Government level from Japan and South Korea, all with the objective in attracting mutually beneficial trade and investment – in both directions.

Business activities with the UK and France have been similarly vigorous.

In all instances, there have been large accompanying industry delegations, which have valued the access and focus brought about by a State visit to engage in exploring contacts at the micro-economic level.

The Private Sector too, is playing a complimentary role in developing a fertile investment climate, and by providing jobs for Bahrainis.

And ‘vroom, vroom,’ goes the old multiplier.

The government will therefore be pleased by recent foreign predictions of 12% growth in the GDP over the next five years if, as has long been its focus, the economy is diversified significantly beyond the hydro-carbon sector, particularly if predicted falls in the price of oil eventuate, as global supplies rise.

Just think of Iran back in the supply business, just think fracking.

Population growth in Bahrain and raised living standards together with creeping inflation, have created extra burdens on government, especially in relation to ever increasing (unsustainable) subsidies.

The Government in providing world class infrastructure has done some of the “hard yards,” such as increasing the debt ceiling and promoting growth through its spending, but more structural reform awaits.

It is also a time for the Private Sector to step up to the plate and show that it is more than just a “pinch hitter,” and then only in the good times.

The Public and Private Sectors, working closely together, other things being equal, offer the best prospect of ameliorating the sharpest effects of booming … and busting.

The author is a former senior diplomat and political adviser with extensive international experience in strategic and parliamentary affairs, and is currently working in Bahrain.

Gulf Insider May 2014

19

Middle East Economic Growth

PUBLIC - PRIVATE SECTOR

PUBLIC - PRIVATE SECTOR IN GULF ECONOMIES

New Report Identifies Five Actions to Stimulate Innovation and Sustain Long-Term Economic Growth in the Middle East.

A

s Gulf economies step up efforts to diversify beyond oil, success depends on participation and buy-in from the “megacommunity� of stakeholders to achieve the essential task of shifting capital and workers from government jobs into growing industries, says Booz Allen Hamilton (NYSE:BAH).

After a half-century of growth and modernization, the Gulf Cooperation Council (GCC) countries have many positive economic elements already 20

Gulf Insider May 2014

Economic Growth Middle East

in place – including infrastructure, political stability, and continued oil revenue – but future prosperity requires new alignment between government, business, and education. In a report released today, the global management and technology consulting firm examines how these stakeholders can work together to rein in government deficits, accelerate private sector employment, and create a national workforce suited for success in the global economy.

Booz Allen worked with the Economist Intelligence Unit (EIU) to identify and analyze roadblocks and opportunities for diversified economic growth in four of the six GCC nations: Oman, Qatar, Saudi Arabia and the United Arab Emirates. Among the key findings: in all four countries, investments in information technology and cybersecurity are accelerating growth in the communications sector. Other high-potential sectors include financial services, healthcare, and tourism.

However jump-starting these industries requires that capital and workers be shifted from government jobs – an enduring challenge for leaders across the GCC. In the report, Booz Allen recommends five major actions that leaders can take to build thriving, diversified and more competitive economies: 1. Initiate public-private partnerships Applying the concept of “megacommunities” to this complex problem recognizes that no single organization has all the resources or authority to solve a problem by itself. Success lies in the ability to create public-private partnerships that transcend individual missions in favor of shared interests – and responsibilities – in reaching the Gulf nation’s economic goals.

2. Launch incentives and reforms to boost private sector growth “Make-order” jobs for nationals may provide short term results and the appearance of economic progress but they cannot be sustained without government subsidies.

Instead, governments should foster private sector growth that generates income from a

variety of thriving, diverse industries.

Starting with high-potential sectors like communications and healthcare, efforts can include providing seed capital for entrepreneurs, building innovation hubs, and nurturing national champion companies to compete regionally and nationally.

3. Refocus subsidies to build a competitive workforce By a wide margin, GCC nationals prefer working for the government over private business. In fact, in three of the four countries surveyed, more than half of employed nationals are employed in the public sector, compared to 20 percent in the UK. Wage subsidies and mandated employment may provide a short-term fix, but they ultimately stifle innovation, pride, and motivation. Longterm success depends on the ability to

help get programs on the right footing.

Such efforts will provide government and business leaders the information they need to make fact-based decisions when designing and implementing national economic strategies. Metrics add measures of accountability, and they help monitor and recognize achievement as programs progress.

5. Mount a national communications campaign to drive support and participation The success of economic restructuring hinges on citizens’ embrace of national economic and development programs.

A persuasive communications campaign can show the link between long-term economic success of the GCC nations to healthy private-sector economies.

Additionally, the focus on wages and hours should shift to the value of training

The Gulf Cooperation Council (GCC) countries have many positive economic elements already in place – including infrastructure, political stability, and continued oil revenue. offer competitive pay, an attractive work environment, and workers with the skills to compete in the global marketplace.

One way to address these issues is to provide businesses with short-term subsidies to hire and train nationals.

and the quality of one’s skills. Ultimately, merit-based work cultivates personal responsibility, accountability and motivation - values that are as crucial to the individual as they are to the nation’s shared success.

4. Test, measure, and evaluate the impact of policy initiatives before and during implementation Before any new initiatives are implemented, governments can assess the potential impact with metrics, simulations, and pilot programs.

Effective measurement, however, requires stakeholders to put in place information systems and processes for collecting, sharing, and analyzing data.

Decision-support systems can also

To view the full report visit http://www. boozallen.com/GCC-Economic-Growth.

Booz Allen Hamilton is a leading provider of management consulting, technology, and engineering services to international governments in defence, intelligence, and civil markets, and to major corporations, institutions, and notfor-profit organizations.

Gulf Insider May 2014

21

Bahrain Projects

BAHRAIN WINNERS

IN SEARCH FOR GCC’S BEST PROJECTS

M

EED has announced the names of Bahrain’s projects of the year in the national round of the MEED Quality Awards for Projects 2014, in association with Mashreq.

After a rigorous judging process, MEED revealed that Bahrain’s projects of the year are: The Ministry of Works’ North Manama Causeway projectand Bahrain Petroleum Company’s (BAPCO’s) Install Refinery Waste Water Treatment Plant project.

The North Manama Causeway project, tsubmitted by Hyder Consulting Middle East, which was named Bahrain’s winner in the Transport Project of the Year, represents a major part of Bahrain’s National Vision to upgrade the existing national strategic road plan, along two routes: the King Faisal Highway and the Al-Fateh Highway. The project includes a 2.4 kilometre-long, 100 metre-wide reclaimed causeway, two marine bridge crossings and a separate loop-shaped flyover, primarily to allow for free-flow entrance to the growing Business Bay district.

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“This is the largest transportation project in the history of the Bahrain Ministry of Works. It features public beaches and improved access to the diplomatic area, Bahrain Bay and Financial Harbour, and the future Manama Lagoon. We are honoured to have been recognised as one of the best projects in the Transport category,” said David Yau, Project Manager for Bridges at Hyder Consulting.

BAPCO’s Install Refinery Waste Water Treatment Plant project has been named Bahrain’s Sustainable Project of the year. The project is part of the company’s Environmental Strategic Plan whichwill provide secondary treatment to the refinery’s waste water to meet the discharge limits set by Bahrain’s Supreme Council for the Environment.

“It is based on a 4-stage membrane bio reactor technology, which will be the first of this size in any refinery waste water treatment worldwide. With this project BAPCO and Bahrain are put on the world map for using innovative technologies in environment conservation,” saidA. Jabbar A. Karim, General Manager Major

The North Manama Causeway project, submitted by Hyder Consulting Middle East, which was named Bahrain’s winner in the Transport Project of the Year.

Engineering Projects, BAPCO. National winners were also selected from projects completed in Oman, Qatar, the UAE and Saudi Arabia.

The GCC winners of the annual MEED Quality Awards for Projects 2014, in association with Mashreq will be announced on 12 May 2014 at Sofitel Dubai, The Palm Resort & Spa, Dubai, UAE.

INDIAN AROMA

Saudi Arabia Sukuk

SAUDI CONFERENCE EXAMINES SUKUK FINANCING FOR INFRASTRUCTURE PROJECTS Sukuk could unlock financing for the region’s USD 1 trillion worth of infrastructure projects.

T

he Euromoney Saudi Arabia Conference will provide a platform for key players in Islamic finance and infrastructure – including NCB, the Saudi Kuwait Finance House, ACWA Power, HSBC Saudi Arabia and Bechtel – to discuss the Saudi Arabian government’s priorities and strategic direction, and the roles of international investors, contractors, and public-private partnerships in funding infrastructure investment.

Co-hosted with the Saudi Ministry of Finance, the 9th Euromoney Saudi Arabic Conference will be held under the theme of “Innovation, Competition, and the Changing Dynamics of Globalisation,” and will run on 6-7 May 2014.

The region is facing rapid population growth and urbanization, with the United Nations projecting that the GCC’s urban population will increase by 36 percent from 36.4 million in 2010 to 49.4 million in 2025. In response, countries in the GCC and other MENA countries like Iraq are investing USD 1 trillion in 117 major infrastructure projects across construction, utilities, transportation and logistics sectors, which are set to be

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Gulf Insider May 2014

completed by 2030 according to a report from EC Harris.

The Kingdom of Saudi Arabia, with the GCC’s largest population and economy, has USD 375 billion worth of infrastructure projects in the pipeline.

To finance these massive projects, the Kingdom is increasingly turning to Shariah-compliant Islamic finance, such as sukuk, in part due to the lower levels of risk and more predictable rates of return.

Richard Banks, Regional Director, Euromoney Conferences, said: “The MENA region will need to raise significant funds to meet its infrastructure needs in the coming years, and Islamic finance will play a key role in enabling governments to do this.”

“We are bringing global experts together with senior executives with practical experience within the Kingdom to discuss the issues surrounding sukuk and examine the road ahead for projects and Islamic finance,” he added.

Total global sukuk issued is set to grow from USD 130 billion in 2014 to USD 237 billion in 2018. Leading MENA, the Kingdom of Saudi Arabia issued USD

8.69 billion worth of sukuk in the first nine months of 2013.

One key point of discussion will be the public-private partnership funding model for the Riyadh Public Transport Project, one of the world’s largest public transport systems under development. The Riyadh Public Transport Project is slated to cost USD 22.5 billion, including 176.5 km of rail and 85 stations, according to the ArRiyadh Development Authority.

Bechtel, the United States-based engineering, construction, and project management firm, led a consortium that won a USD 9.4 billion contract to design and build two of the Riyadh Public Transport Project’s lines, totalling 63.3 km. Executives from the company will take part in panels during the conference, outlining how public-private partnerships are playing a key role in infrastructure investment and sharing their experiences on the project to date.

The Conference will take place at the Al Faisaliah Hotel in Riyadh on 6-7 May 2014, and is expected to attract more than 1,200 delegates from all over the region and beyond.

Saudi Arabia Business

DIVERSIFICATION IN SAUDI ARABIA KSA Anticipates Shift from Oil to Knowledge-Based Economy with Record Non-Oil Exports and Development of Economic Cities.

F

urther progress on economic diversification has the potential to shield the Kingdom from the next economic slowdown, according to key financial players set to attend the 9th Euromoney Saudi Arabia Conference taking place in May 2014.

The steps being taken towards diversification – and the challenges that still remain – will be examined by banking and investment experts attending the event.

During the economic slowdown, oil exporters like the Kingdom largely absorbed economic shocks by providing capital and guaranteeing deposits, according to the World Bank.

To shield against any future economic slowdowns, especially if it were to affect oil prices, the Kingdom’s leaders are increasing budgeted government expenditure to a record SAR 855 billion in 2014, driving non-oil exports that reached a record SAR 206 billion in 2013, and rapidly developing industry-specific Economic Cities across the Kingdom.

This increased spending is working in parallel with labour-market reform projects initiated by the Ministry of Labour, aiming to increase the number of opportunities for Saudi nationals, and

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Gulf Insider May 2014

increase the growth rate of jobs available in the private sector.

Economic Diversification Guided by ‘Long-Term Strategy 2025’ Financial leaders from The World Bank, Al Rajhi Capital, HSBC, Jadwa Investment, BNP Paribas, Gulf International Bank, Saudi Investment Bank, NCB and Investor for Securities will discuss the impact of these policies at the Euromoney Saudi Arabia Conference taking place on 6 May. Speaking on the success of economic diversification, the Kingdoms’ non-oil exports reached a record SAR 206 billion in 2013, a rise of 9.2 percent from 2012, according to a recent report from Al Rajhi Capital. In 2014’s balanced budget of SAR 855 billion, a record high in budgeted government expenditure driving the economy, which is predicted to reach 4.0 percent real GDP growth in 2014.

Construction, retail, transport, manufacturing, and communications are all posting strong growth this year, according to Jadwa Investment.

Spending in 2014 is focused on three key areas: education (SAR 210 billion), healthcare (SAR 108 billion)

Speaking on the success of economic diversification, the Kingdoms’ non-oil exports reached a record SAR 206 billion in 2013, a rise of 9.2 percent from 2012. and infrastructure (SAR 66.6 billion).

This spending will support educational institutions and students studying abroad; medical and recreational facilities; and transportation, ports and airports, and industrial projects.

Further fuelling economic diversification are the Kingdom’s four Economic Cities being developed by the Saudi Arabia General Investment Authority. By 2020, these are slated to generate USD 150 billion in GDP and create 1.3 million jobs.

The event will take place at the Al Faisaliah Hotel in Riyadh on 6-7 May 2014.

Dubai Islamic Economy

CAN DUBAI BECOME THE

CAPITAL OF THE ISLAMIC ECONOMY? Prof Laurent Marliere considers challenges to make Dubai the Babylon of the emerging Islamic economy.

T

he term Islamic economy can be considered through various angles. Minimalists would say it refers to the economies of the 57 member states of the Organisation of Islamic Cooperation (OIC) or to products defined by Sharia compliance, such as finance and food.

Maximalists believe it is one segment of the global economy, which focuses on Islamic consumers, regardless of location. I personally follow the approach focused on the consumer and demand.

Islam and Muslims are a global paradigm with specific needs and requirements that need to be serviced accordingly.

The fact that large forums like the World Islamic Economic Forum (WIEF) hold their annual gatherings in non-Muslim countries is evidence that the Islamic economy is a worldwide phenomenon.

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Gulf Insider May 2014

In Asia, people tend to refer to the “Halal industry” to describe the Islamic economy.

In terms of figures, one could consider the 1,65 billion Muslims who constitute the Ummah as the market of the Islamic economy. I ponder this, as Muslims across the world are heterogeneous in their consumption habits and, besides, Islamic products could also be potentially interesting to non-Muslims.

According to an insightful survey conducted by Thomson Reuters in 2013, the global expenditure of Muslim consumers on food and lifestyle sectors was $1.62 trillion in 2012 and expected to reach $2.47 trillion by 2018. Islamic financial assets in 2012 were estimated at $1.35 trillion in total disclosed assets and growing at 15-20% a year in most core markets. This report estimates the

potential value of Islamic banking assets in its core markets to be $4.1 trillion.

Islamic finance, which is one of the most mature sectors of the Islamic economy, is unable to make a real breakthrough because of the very fact that it is industry-driven and not marketdriven. Financial institutions like Noor Islamic have erased the term “Islamic” from their brand, HSBC Amanah no longer offer Sharia-compliant products and services in the UAE and the UK and the Islamic Bank of Britain (IBB) encounters profitability issues.

The Islamic economy is one of the most innovative segments of the world’s economy. It still needs to be conceptualised and therefore offers tremendous opportunities for an authority with sound leadership.

Dubai has proved in recent years that

Islamic Economy Dubai

Dubai has proved in recent years that it has the capacity to handle financial challenges and great infrastructure projects.

it has the capacity to handle financial challenges and great infrastructure projects. If the vision is backed by the righteous means both in terms of finance and knowledge, the rise of Dubai as key player of the sector can be achieved. International macro financial institutions like the Islamic Development Bank (IDB) or the World Bank should step into the project.

The world map is no longer focused on the Atlantic or the link between the US and Europe. The new planisphere is focused on the Pacific and makes Dubai a potential regional capital, a metropolis of Asia and, perhaps even the business capital of Africa, which fails to develop a secure centre. The geo-economics of Dubai makes it more accessible than Malaysia from Europe and easily reachable to the Muslim populations of

Africa, the Levant, the GCC and Asia.

The Islamic economy does not solely belong to Muslims. It is a universal industry segment. Dubai has managed to combine an Eastern and Western cosmopolitan culture, which makes it easier to carry out business and trade than in other neighbouring countries.

The legal and judiciary systems in Dubai guarantee the necessary security for business and FDI. Starting from scratch is a strength: everything can be invented! However, it would be unwise to simply mimic what others have done. Merely copying what Malaysia has done is unrealistic because the Malaysian model, although a great lesson to the world, is not a complete success since it has not managed to conquer more than a regional space! It has failed to become global.

To become a capital, Dubai is going to need to attract new companies, corporations and investors to its soil.

Tax can play a decisive role. Dubai authorities may underestimate that factor, as it appears exotic to their local daily life. However, tax pressures in the West are climbing at the same time as traditional tax havens are under scrutiny and pressured by strong political and legal measures, mainly issued by the US and the UK (Fatca legislations, etc.), whose citizens are heavy users.

In most off-shore jurisdictions, one only finds a tax haven and a beach haven.

In Dubai, you find a tax haven, a beach haven and a trade haven… a real added value for many Western corporations willing to relocate.

If handled properly, and kept an “on-shore” jurisdiction, Dubai and the UAE can pretty much play the role of Luxembourg in the European Union.

The GCC will increase its integration in the coming years, like the EU did.

Dubai can be a competitive player in this economic union.

The development of the Islamic economy will require support services of high standards which are available in numbers in Dubai, such as law firms, audit & accounting services, banks, certificatory bodies, and brokers.

Dubai can use the professional services firms’ home networks and client portfolios to facilitate the relocations of their clients to the Dubai International Financial Centre (DIFC) and elsewhere.

There are 68 international law firms and 400 banks there already. There is great potential to create a spider effect boosted by tax incentives.

We live in a complex and sophisticated world. What was halal yesterday might not be today. Take the example of a fish: today, it can be raised on a fishing Gulf Insider May 2014

29

Dubai Islamic Economy

farm and fed a cocktail containing pork meat, wrapped in a pack full of alcoholbased ingredients and transported in a container that carried haram products the day before. The process of halalization can become universal, as can the demand. It is linked to the supply chain of the products. Dubai becoming a logistical hub means it can take a share in a “supply chain model 2.0”, tailored to the halal industry.

What are Dubai’s challenges?

A short-term or even mid-term view is problematic. If the sole aim is to make Dubai a nice-looking fiancée to present at the World Islamic Economic Forum (WIEF) in October then you risk building on sand instead of concrete. The project deserves, and requires, a long-term plan based on pillars that will explain what the Islamic economy will be in 10 or 20 years!

A myopic short-term plan to simply state that “we are the capital” is not enough. A careful strategic analysis on how to sustain this leadership position needs to be implemented.

In such a huge macroeconomic project, the micro management of smaller items can carry people away – that’s what I call the camel view! But success requires a falcon view from the top down…

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Gulf Insider May 2014

People need to be realistic on the calendar and agenda. It should take at least a year to create a solid roadmap.

Before you build a Burj Khalifa, architects require time to plan the work of art.

Otherwise, you create a mere gadget and risk disappointing or upsetting people. Many observers in the Muslim world are now looking at Dubai with a smile on their face. Will the promise be kept? What will be the outcome?

Islamic finance is a mix of money and regulations. It should be a mix of money, marketing and fewer regulations. It is likely that the Islamic economy embarks on a similar journey, where simple things are made complicated by regulators, lawyers and scholars, carrying away the one who should be the real beneficiary of the Islamic economy: the consumer!

The Islamic financial industry is struggling with its products and needs some clearly-defined directions, or strong recommendations, to address major issues: its growth and profitability.

The market positioning of the majority of Islamic products is religious, not financial. Hence, IFF (Islamic Financial Institutions) are failing to penetrate into the mass segments of the Muslim consumers, let alone attracting nonMuslim customers. The religious positioning of the products helps them attract the religious segment, which is

thin and shallow. Once this segment is exhausted, institutions find it very hard to penetrate the remaining segments of the market, including the most valuable segments. Religious consumers buy conventional products because they do not see the value of the Shariacompliance of the product.

Dubai should learn from the mistakes of the Islamic finance industry and launch a smarter paradigm.

Unlike many local observers, I do not believe that Dubai will beat London in the near future as the capital of Islamic finance. The City of London still has some assets and the historical status of world capital that Dubai has not yet achieved. But in the segment of the Islamic economy, Dubai can definitely become the leader provided that its authorities fuel the proper resources and intelligence into the project. If Dubai becomes the world capital of the Islamic economy than it can become the world capital of Islamic finance… not the other way around.

Laurent Marliere lectures in “Marketing for the Islamic markets”. He is the London-based CEO of ISFIN, a worldwide advisory present in 65 countries and focusing on the Islamic markets. He can be contacted at LM@isfin.net.

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Real Estate World Cities

FUTURE REAL ESTATE MARKETS New 12 Cities report studies the real estate markets of the leading world cities.

N

ew York and London have been named as leading international cities in a new report from international real estate adviser, Savills. The firm classes cities on their prominence and fame, as well as economy and size; factors that will determine the cross-border investability of their real estate and their future as well as their current ‘world class’ city status.

In 12 Cities, the Savills ‘X-Factor’ world city characterisation looks at a combination of global competitiveness, together with measures such as

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Gulf Insider May 2014

connectivity, international visitors and web search data, to determine overall world city status. Behind New York and London, using these metrics, Singapore and Paris start to rival the two leaders, while Moscow, Mumbai and Rio de Janeiro are less-established leading global cities in the top tier of twelve in the study.

“Our definition of a world city is not just based on size or economic prosperity, but other less tangible factors,” says Yolande Barnes, director of Savills World Research. “These include fame, prominence, international reach

and investability – all factors that are not revealed by population and GDP figures alone.

“The redrawing of the global economic map is having a significant impact on real estate markets. ‘New world’ economies, notably China and India, have recently seen weakened growth, while older industrialised economies, including the USA, UK and Japan, are now recovering more strongly than many commentators anticipated.

“As a result, the runaway real estate growth of ‘new world’ cities has abated and in some cases, such as Mumbai and

World Cities Real Estate

THE CITY X-FACTOR RANKING

Savills Overall World City characterisation

Resi cap growth H2 2013

Resi rental growth H2 2013

Gross resi yield

Gross resi yield net of 10 year Govt Bond Yield (‘net

World city ranking for resi investors

3.1% 1.5% 2.4% 1.2% 0.5% 3.9% -2.3% 0.1% 0.5% -5.5% -2.0% -9.6%

2 4 3 5 6 1 10 8 7 11 9 12

of gilt’)

1= 1= 3= 3= 5 6 7 8 9 10 11 12

New York London Paris Singapore Hong Kong

Tokyo Shanghai Dubai Sydney Mumbai Moscow Rio de J

3.7% 7.1% -0.8% 0.4% -3.6% 2.8% 2.7% 20.4% 5.2% -5.0% 2.2% 7.1%

1.0% 2.3% 0.4% -0.3% -1.1% 0.4% -1.1% 28.7% 3.5% -9.2% 2.6% 0.0%

6.1% 4.5% 5.0% 3.8% 2.9% 4.6% 2.3% 5.5% 4.8% 3.3% 5.8% 5.1%

COST OF

COMMERCIAL INVESTMENT RANKING*

RESIDENTIAL INVESTMENT RANKING*

Office yield

(based on net of gilt measure)

Office yield net of 10 year Govt Bond Yield (‘net

World city ranking for office investors

1.8% 0.5% 2.4% 1.6% 0.3% 3.5% -0.2% -1.3% 3.3% -0.3% 1.4% -6.2%

4 7 3 5 8 1 9 11 2 10 6 12

of gilt’)

4.8% 3.5% 5.0% 4.1% 2.7% 4.2% 4.3% 4.1% 7.5% 8.5% 9.3% 8.5%

(based on net of gilt measure)

ACCOMMODATING

BUSINESS

Live-work space cost per employee per year

$112,000 $115,000 $107,000 $76,000 $123,000 $74,000 $44,000 $72,000 $60,000 $28,000 $70,000 $30,000

Livework cost ranking

3 2 4 5 1 6 10 7 9 12 8 11

The strength of investment markets in new economies are personified by Dubai’s highgrowth real estate centre.

Source: Savills World Research

prime Hong Kong, it has reversed. The strength of investment markets in new economies are personified by Dubai’s high-growth real estate centre. Its revival is indicative of a market recovering from very full price corrections after 2008.”

The indicators for real estate investment The Savills X-Factor overall city characterisation does not necessarily reflect traditional measures of economic or real estate costs and values, it speaks to the longer term stability and attractiveness of a world city destination.

The three cities with the highest X-factor also appear in the top 4 for investors in residential real estate, however, they are also in the top 4 most expensive destinations for employee live-work costs.

To understand the true appeal of residential and commercial real estate as an asset class in each city, Savills has again compared gross rental income to the income available from 10 year government bonds in each country, creating a ‘net of gilt’ yield. This, they say, gives a true measure of the performance of real estate compared to the local risk environment.

By this measure, Tokyo provides the highest returns in relation to bonds and has started to be favoured by more adventurous investors who understand the singular character and risks of Japanese real estate markets. New York too provides some compelling gross yield levels which have encourage increasing investor interest.

Taking the market temperature (based on GDP to residential capital values measure) In 12 Cities, Savills identifies Hong Kong, Shanghai and, most notably, Mumbai residential real estate values as looking most vulnerable to correction.

New York and Sydney look to be markets with greatest scope for growth, while London and Dubai residential prices appear on the higher side of average, particularly the cities’ prime markets, but are still some way off the hottest cities.

“Non-prime mainstream housing stock is now an attractive buy for investors,” says Barnes. “On a world stage, London’s mainstream values look cool, while Dubai and Hong Kong look

more fully valued. We now expect that secondary and even tertiary markets in our world cities could offer superior growth compared to prime over the next five years.”

As the tapering and eventual demise of quantitative easing takes effect, the global growth in asset prices will inevitably slow. We expect to see rental growth and capital growth eventually realign.

With bond yields and interest rates likely to rise soonest in Asia, rather than the industrialised West, it is in this region that we expect to see the most stress in overstretched markets in the short term.

* Based on Savills Executive Unit (SEU).

Gulf Insider May 2014

33

Abu Dhabi Property

ABU DHABI

RESIDENTIAL PROPERTY MARKET “Economic evolution underpinning long term sustainability of residential property market in Abu Dhabi”, says report.

A

bu Dhabi’s gradual economic diversification is helping to deliver long term sustainability to the emirate’s residential market, according to the latest research released by international real estate consultancy Cluttons.

Cluttons Abu Dhabi Spring 2014 Residential Market Outlook report, points to the emirate’s strong economy, which is showing significant signs of change.

The non-oil sector continued to expand its share of the economy, accounting for 45% of total GDP in 2013 and up from 43% in the previous year, which is helping to ensure the sustainability of growth in the residential market by aiding in the long term diversification of the buyer and tenant demand base.

Key sectors driving growth in the housing market are the tourism, hospitality, education and healthcare sectors, which is translating into robust population growth and demand in terms of the volume and nature of property requirements.

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Gulf Insider May 2014

This resurgence in demand is coupled with a market that has been depleted of new supply for a number of years and this is driving values, while also stimulating a widespread return to development.

Steven Morgan, Chief Executive Cluttons Middle East, said: “Abu Dhabi’s economic evolution is underpinning the long term sustainability of the residential property market. The market has already seen the quarterly pace of residential value growth stabilize at close to 7% over the past two quarters. Despite the moderation in the rate of acceleration, values across the City’s relatively small freehold residential landscape currently stand 47% up on this time last year, highlighting the depth of buyer demand.

This is also enhancing Abu Dhabi’s attractiveness to international investors, some of whom are keen to capitalize on rapid rebounding in values.”

Highly sought freehold apartments experienced the strongest performance in Q1 (6%), with Al Reef Downtown (9%) showing the greatest level of growth.

In the villa market, Al Reef Villas (6%) was the strongest performing primarily because of its relative affordability when compared to other submarkets in the city.

The economic diversification is also positively influencing the lettings market, with corporate transactions taking entire towers for staff housing common place.

The rapid removal of stock from the supply line will continue to sustain the upward pressure on rents.

“We expect this trend to persist during 2014, but the ongoing growth in rents across the city will drive larger corporations to contemplate longer term solutions for staff accommodation”, adds Morgan. “We expect to see a sharp increase in long-term lets, which will reduce stock levels in desirable locations.

As a result, we anticipate a growth in partnerships between corporations, developers and land owners, with buildto-suit options coming to the fore.”

The lettings market is however still expected to remain buoyant. The

Property Abu Dhabi

KNIGHT FRANK RELEASES

GLOBAL CAPITAL MARKETS SPRING 2014

A

ccording to Knight Frank’s latest Global Capital Markets report, global transaction volumes for commercial property are set to see growth of at least 15% in 2014, which will take the annual total to well in excess of US$600bn.

Global transaction volumes for commercial property (retail, offices, industrial and hotels) amounted to US$536.7bn in 2013 - a rise of 18% on 2012 and the highest total since 2007.

The amount of investment capital emanating from China and the Middle East has increased sharply. Real Capital Analytics data shows that, in 2013, Chinese investment in global markets tripled to at least US$14.3bn. Over the same period, Middle Eastern sovereign wealth funds doubled their acquisitions to US$18.8bn, with the UK and US firm targets. This trend is expected to continue apace, with the range of target markets likely to broaden. vibrancy will in part be aided by the recent removal of the Rent Cap in November 2013. Morgan commented, “Landlords were able to adjust rents to perceived market levels rapidly and clearly longer term tenants would have felt this the most. In fact some tenants have reported increases of up to 50% at renewal. The announcement has helped to drive churn in the market as value seekers are being driven to more affordable submarkets such as Al Reef.”

“As these sub-markets come to life with improved infrastructure and amenities, more people will continue to be drawn to them. The market is undoubtedly meandering through a settling period following the removal of the Rent Cap, but the thickening supply pipeline may offer some respite to tenants, particularly if we see corporates begin to exit the private rental market in favour of build to suit options.”

Knight Frank’s Director of Capital Markets, Joseph Morris, said “Property yields continue to offer a significant margin over government bonds in most markets. While pricing at the prime end of the market will remain keen, yield compression will slow, as investor attention gradually shifts towards higher-yielding opportunities which offer good prospects for growth.”

Knight Frank’s Research Manager for the Middle East, Khawar Khan, said, “The weight of capital seeking exposure to real estate continues to increase, with investors being drawn to the asset class by its income-producing qualities, the improving availability of debt and a steady recovery in global occupier markets. As a result, global investment volumes should comfortably exceed the US$600bn mark in 2014.“

GROWTH DRIVES PRIME OFFICE RENTS IN SAUDI ARABIA

W

hile real GDP growth in Saudi Arabia slowed from 5.8% in 2012 to 3.8% last year, the effect was overstated by the 0.7% contraction in the Kingdom’s hydrocarbon sector. However, the finance, insurance, real estate & business services, as well as the public administration sector, grew by 4.9% and 3% respectively.

Key highlights Last year Saudi Arabia weathered events in Egypt and Syria relatively well, recording GDP growth of 3.8%. While the oil sector saw a slight decline, the non-oil private sector recorded strong growth with construction, transport, storage and communication sectors performing well.



Year-on-year Grade A rents across the Kingdom recorded an increase of 6% with Jeddah out performing Riyadh and the Eastern Province

 Demand,

historically driven by the public sector, looks set to be underpinned by growth in the nonoil private sector



Grade A rents will remain stable in the short term while Grade B rents will soften as new stock is released to the market

Vacancy will increase as supply comes online, however, phasing of large developments should smooth any dramatic effect on rental performance.

Gulf Insider May 2014

35

Interview Cathay Pacific

TRAVEL

RUPERT HOGG

Cathay Pacific’s new Chief Operating Officer Gulf Insider’s Bill Daly goes to Hong Kong to learn about Cathay’s strategy, and how it effects the Middle East.

H

ow does Cathay Pacific maintain a competitive edge, specifically as regards the Gulf Carriers Emirates, Etihad and Qatar Airways?

Rupert Hogg: We have always had competition and to deal with it we focus on our award winning customer experience. Important in this is our Premium Economy Class which is a total enhancement of our Economy Class experience in terms of value and comfort.

And don’t forget that within 5 hours of our home base we have half of the world’s population and within 3 hours we have one third. This is an enormous market on our doorstep. Cathay Pacific is a genuine network carrier and our passengers from this huge population can reach Europe or North America with a mere one stop in Hong Kong as opposed to two stops when flying with the Gulf carriers.

We have a very big trans-pacific business which is difficult for others to compete with due to the geographic advantage of Hong Kong’s position.

What do you see as Cathay Pacific’s greatest strength?

We are a 100% customer focused airline.

Our customers require a premium service and that is what we give them. We are an independent company, not government owned, so we survive, thrive or otherwise by selling our services.

Our fleet of aircraft is among the youngest in the world and we reinvest heavily in interior fit out as per our passengers’ requirements.

And

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Gulf Insider May 2014

Rupert Hogg obviously, none of this would be possible without the most loyal, dedicated and passionate staff.

The Kangaroo route (Australia to London) has a long history and tradition for Cathay Pacific. How have the expansions of Dubai, Abu Dhabi and Doha as hub airports impacted upon your business?

There has been some impact but

Cathay Pacific Interview

Cathays high end business and premium economy class are in demand and strong sales at the front end of the aircraft far outweigh any drop in yield on economy seats.

Also, we feel that the preference of passengers on the Kangaroo route is to transit through Asia rather than the Middle East.

Cathay Pacific is synonymous with Hong Kong. How important is the relationship between an Airline and its home base airport?

It is vital to have a strong homebase carrier to anchor an airports hub operations. If you compare Bahrain and Dubai, both of which were commercial and leisure connection points at a major aviation crossroads, Bahrain as a destination and hub was hampered by capacity and restructuring issues in its home carrier, Gulf Air, whereas traffic to and through Dubai has boomed, anchored by Emirates Airlines.

Only a strong homebased carrier has the werewithal to create the incoming traffic and make them connect with the outgoing flights.

Is the expansion of low cost carriers in the Asian region having an impact on your business?

We compete well against the low cost carriers and we are very happy with our current strategy of focusing on our customers requirements for a quality service.

How important is the cargo side of your business?

It is important in that it contributes about 21% of our annual revenues but due to oversupply in the industry combined with weak demand, yields have fallen and I doubt that any airline in the world is making money on their cargo operations.

In total, we carry more than 120,000 tonnes of cargo per month, more than half of which is uplifted on passenger flights.

Our Boeing 777 passenger aircraft have 20 tonnes of “belly space” each so on 5 London flights, that is 100 tonnes per day that we can sell and that’s just on passenger aircraft.

Unlike most other major carriers, Cathay Pacific has not purchased any Airbus A380’s. Why not?

It’s not a foregone conclusion that every major carrier has to use A380’s!

Rather than a pack 500 people into one aircraft, we would rather have lower capacity aircraft but at the same time, make more frequent trips. Again, going back to focusing on offering a service which our customers require, we know that our passengers like the frequency which we offer on our schedules.

Larger aircraft would result in less frequency.

We have a very big trans-pacific business which is difficult for others to compete with due to the geographic advantage of Hong Kong’s position.

Cathay pacific, the world’s 14th largest airline in terms of revenue passenger kilometres and the 7th largest in freight tonne kilometres, is the international flag carrier of Hong Kong.

The airline is majority owned by the private English company, Swire Pacific with Air China Limited having a reciprocal ownership by and in Cathay Pacific.

Cathay Pacific Airways staff number 21,900 worldwide and the airline flies to 182 destinations in 42 countries with it’s fleet of 139 aircraft.

Gulf Insider May 2014

37

Qatar Mega Airport

TRAVEL

DOHA’S NEW MEGA AIRPORT Gulf Insider takes a last-minute tour before HIA’s long-awaited inauguration.

W

hen Gulf Insider was invited to sneak a peek of Doha’s brand new Hamad International Airport (HIA), shortly before its launch date was officially announced, we could not hold our excitement.

After all, we are talking about one of the largest mega-projects in the world, with estimated USD 15 billion worth investment, more than 1,000 specialists involved, and a potential of providing thousands of job seekers with employment opportunities.

The design and construction of this state-of-the-art terminal began as early as 2004, followed by many interruptions.

The final opening date was eventually set for April 2013, but it too was cancelled, with only a few hours’ notice, due to unsatisfactory safety related issues.

The latest inauguration date was not yet revealed when we visited the HIA premises, although as per the most recent updates, it might be up and running by the time you read this

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Gulf Insider May 2014

magazine, provided the infamous delays and last minute cancellations are left behind.

A several-year delay of the airport’s phased opening, although seemingly unplanned, only added to the suspense, sparking all sorts of speculations on possible reasons behind holding back the project’s completion.

Rumours aside, according to Chairman of New Doha International Airport (NDIA) Steering Committee Mr. Abdulaziz Mohammad Al Noaimi, the delays were a result of changes requested during construction to expand the project, as well as challenges they faced regarding some contracts.

Our first thought, as we approached the water-themed construction, was that it actually looked quite beautiful – for an airport or any other major building come to that. Replicating its natural bay and water-side setting, The HIA’s wave-like shaped roof, with the transparent façade beneath, makes a grand impression.

The water theme is evident throughout,

be it a beautiful manmade lagoon in the front of the terminals, or the sail boatsshaped VVIP Emiri Terminal.

As we entered the HIA Passenger Complex, we noticed how the project looked complete and ready to start its operations.

To continue with the main motif, the interior’s acoustics were perfectly designed to amplify the water sound effects, heard throughout the terminal.

Other stand-out features include two five-star hotels, a swimming pool, a spa, squash courts, and even a bamboo forest, plus the place is filled with several art installations, promoting both local and international artists.

What’s also worth a mention is that the airport’s design is, we are assured, ecofriendly. A highly advanced technology was used, with the main focus on environmental protection, such as water efficient landscaping, or a curtain coating the building’s walls to reduce solar exposure.

In addition, the project became the

Mega Airport Qatar

The interior’s acoustics were perfectly designed to amplify the water sound effects, heard throughout the terminal. largest conservational program in the Gulf region, when over 6.2 million cubic meters of improperly disposed waste was removed from the site and disposed of properly in an engineered landfill.

Qatar Airways (QR) are surely among those looking forward to the official launch of HIA, which will handle the airline’s busy operations as their new home base - one of the first international airports to be specifically designed with the Airbus 380 in mind.

Ranked number one in Skytrax’ 2012 World Airline Awards, the carrier has a network of 136 destinations and is expanding its fleet, adding on average

The HIA’s wave-like shaped roof, with the transparent façade beneath, makes a grand impression.

one new aircraft every 12 days.

This world-class hub airport will add significant value to the overall travel experience of the QR passengers, many of whom have complained in the past about low quality of services and facilities at Doha International Airport.

Gulf Insider May 2014

39

Middle East Hotels

TRAVEL

MARKET REVIEW MIDDLE EAST HOTELS

The information in this article is extracted from EY’s ME Hotel Benchmark Survey which provides a monthly performance overview of leading hotels in the Middle East.

E

gypt

- Cairo’s hospitality market has registered the largest drop in RevPAR in the year 2013, as compared to 2012 of the countries surveyed within MENA. Due to the continued political instability and security concerns plaguing the city during the year, RevPAR decreased by 41.2% compared to the previous year. Although there was no change in ADR between 2012 and 2013, average occupancy in the city decreased from 38% in 2012 to 22% in 2013.

Both Hurghada and Sharm El Shaikh have witnessed a drop in RevPAR in

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Gulf Insider May 2014

December 2013 of 22.6% and 23.1% respectively when compared to December 2012. Sharm El Shaikh ADR dropped from US$50 to US$44 during the same period, coupled by a decrease in average occupancy of 9%.

Lebanon - The Syrian conflict has

had a significantly negative effect on its neighboring countries’ hospitality markets. During the full year 2013, average occupancy in Beirut amounted to 51%, a decrease of 3% from 2012, with average room rates decreasing from US$201 to US$169 during the

same period, which resulted in a drop in RevPAR of 20.8%.

Jordan - Jordan’s hospitality market

also witnessed a decline in Key Performance Indicators due to the Syrian conflict, with RevPAR during the year 2013 falling by 8.4% compared to 2012, from US$105 to US$96, mainly due to a decrease in average occupancy during 2013 of 8% during the same period.

Bahrain – Manama has witnessed an

increase in RevPAR of 10.8% during 2013

Hotels Middle East

Manama has witnessed an increase in RevPAR of 10.8% during 2013 compared to 2012, due to governments efforts in stabilizing the political situation

RevPAR, or revenue per available

room, is a performance metric in the hotel industry, which is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy percentage.

Comparisons are usually best considered between hotels of the same type.

ADR = Average Daily Rate, one

compared to 2012, due to governments efforts in stabilizing the political situation in Bahrain during the year. Average occupancy in the city increased from 37% in December 2012 to 42% in December 2013.

Jeddah - Jeddah recorded a 9.3%

increase in RevPAR during the year 2013 compared to 2012, mainly due to an increase in corporate demand in the city as well as the lack of new supply of 4 & 5 star hotel rooms during 2013.

Kuwait - Kuwait City, have witnessed

an increase in RevPAR of 3.7% in 2013 compared to 2012, although approximately 753 new room (mix of 4 & 5 star hotels) have come online in 2013, most notably the Jumeirah Messilah Beach Hotel & Spa.

Qatar - In December 2013, Doha’s ADR was recorded at US$245 compared to US$301 in December 2012, while average occupancy levels remained

relatively the same at 62%. The drop in ADR has decreased RevPAR from US$190 to US$153 during the same period.

Doha hospitality market witnessed a decrease in RevPAR of 5.4% in 2013 when compared to 2012, mainly due to a decrease in ADR from US$265 in 2012 to US$252 in 2013.

Dubai - Dubai’s hospitality market witnessed positive growth on all Key Performance Indicators in the year 2013 compared to the year 2012. During 2013, approximately 2,780 new branded hotel rooms all within 4 & 5 star hotel segment were added to Dubai’s hotel supply, which include but are not limited to Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, the Oberoi hotel in Business Bay, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha. Dubai’s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, showing a jump in ADR from US$261 in 2012 to US$278 in

of the commonly used financial indicators in hotel industry to measure how well a hotel performs compared to its competitors and itself (year over year).

One should combine ADR, occupancy and RevPAR (revenue per available room) to make a sound judgment on hotel performance.

2013, resulting in an overall increase in RevPAR of 5.9% in the same period.

Abu Dhabi & Al Ain - Both Abu

Dhabi and Al Ain witnessed an increase in RevPAR in the year 2013 compared to 2012, of 7.4% and 13.5% respectively.

Abu Dhabi ADR’s increased from US$195 in 2012 to US$207 in 2013, while Al Ain ADR recorded only a slight increase in ADR of 2.4% compared to the same period. However average occupancy levels in Al Ain increased from 65% in 2012 to 72% in 2013.

The information in this article is extracted from EY’s ME Hotel Benchmark Survey which provides a monthly performance overview of leading hotels in the Middle East.

Gulf Insider May 2014

41

Qatar Tourism

TRAVEL

QATAR UNVEILS TOURISM STRATEGY 2030’

T

he Qatar Tourism Authority (QTA), officially unveiled the ‘Qatar National Tourism Sector Strategy 2030’ last month. Drawing inspiration from the Qatar National Vision 2030 and the National Development Strategy 2011-2016, they have set out a roadmap for the State’s tourism sector.

The National Tourism Sector Strategy 2030 envisions positioning Qatar as ‘a world class hub with deep cultural roots’.

The Strategy was developed through a nationwide consultative process led

by QTA and involving public and private sector organisations, civil society, key industry stakeholders, and opinion leaders. “Tourism is a vital pillar in Qatar’s development efforts and a key driver of socio-economic growth in the country” said Issa bin Mohammed Al Mohannadi, QTA Chairman. “The Strategy will help reinforce Qatar’s regional and international standing as a premium destination.”, he added.

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Gulf Insider May 2014

The Strategy is set to expand the economy, grow the number of SMEs, and encourage entrepreneurship and a greater role for the private sector in the economy. By 2030, it is set to increase tourism’s total contribution to the national GDP, enhance the total tourist spend in Qatar to nearly $10.7 billion dollars, and achieve a greater balance in the breakdown of tourists to Qatar by market of origin and purpose of visit. More than 60 new strategic tourism development initiatives are in the pipeline, with the first of them having already been launched in January 2014.

Hassan Al Ibrahim, QTA Director of Strategy, commented, “Our aim is to have the tourism industry contribute a total of 5.1% to GDP by 2030, up from 2.6% today. US$ 40 to 45 billion of investments by the government and the private sector will make this vision a reality.”

In 2012, 1.2 million visitors made their way to Qatar, mainly from KSA and the

other GCC countries. “Our target is to attract 7 million visitors to Qatar from all over the world by 2030,” said Al Ibrahim.

Towards achieving this goal, QTA has already set up satellite offices in London and Paris, with eight more international offices set to open in the near future in key outbound markets.

The National Tourism Sector Strategy 2030 builds on the current growth in tourism in Qatar and the development of first-rate infrastructure that has created an environment highly conducive to tourism through the exponential increase in the number of quality hotels and the construction of an advanced transportation network. The new Doha Exhibition and Convention Centre (DECC) is scheduled to open in 2014 and will be a game-changer for the MICE sector. Also opening in 2014 is Hamad International Airport, which is destined to become an important hub for transit passengers.

Advertorial

TRAVEL

DISCOVER GREECE

THE HISTORICAL CAPITAL OF EUROPE, THIS SUMMER

G

reece has always been an attractive destination to international tourists and visitors, with its many attractions ranging from the country’s historic and architectural monuments to its Mediterranean coastlines.

Athens, believed to be the birthplace of Western civilization, has weaved its ancient roots across the city’s landscape, creating breathtaking views against the backdrop of modern city-life.

From the Acropolis’ fortified town and the impressive ancient ruins of the Temple of Olympian Zeus to the National Garden of Athens, the city has something for every traveller.

Renowned for its antiquity and influence, Athens offers a wide selection of small art galleries and museums alongside major institutions like the National Archeological Museum and the National Art Gallery on Michalakopoulou Street.

During the five-year economic downturn, Athens spawned a new form of creative

No trip to Athens would be complete without tasting the local cuisine, famous for its souvlaki, grilled vegetables and meats topped with yogurtbased tzatziki sauce. For a taste of a traditional and lively Athens, a visit to Plaka and Monastiraki offers bars and cafes in these classic Athenian neighborhoods.

Getting there:

During the five-year economic downturn, Athens spawned a new form of creative energy and artistic expression through graffiti and street art that has transformed the city into a contemporary canvas. energy and artistic expression through graffiti and street art that has transformed the city into a contemporary canvas.

Gulf Air offers four direct and conveniently-scheduled weekly flights to Athens. the airline has, over the past three years, engaged in a comprehensive re-fleeting and product enhancement strategy as well as fully renovated its Falcon Gold lounge at Bahrain International Airport, and maintains its award-winning onboard Sky Chef and Sky Nanny (making travel with children easier).

For more information visit gulfair.com Gulf Insider May 2014

43

Qatar Food Festival

DINNER IN THE SKY Gulf Insider gets up-to-date on fine dining trends at Qatar International Food Festival.

Image: www.marhaba.com.qa

A

s the cranes slowly lifted our custom-designed dining platform 60 meters up in the air, while we watched the chef prepare our meals in the central serving station, we finally began to truly enjoy our time at the fifth Qatar International Food Festival (QIFF).

Keeping in mind that the main concept behind QIFF’s Dinner in the Sky was the thrill that comes with it, we were positively surprised at the quality and tasteful presentation of the food served to us, as we contemplated a breathtaking view of the bay spread beneath.

This unique activity was made possible by Qatar Tourism Authority, who partnered with Qatar Airways as the main sponsor to organise the event last March, with the aim of highlighting the latest fine dining trends, and a special focus on original blends of Qatari and Brazilian cuisines.

With over 50 stalls of Qatar’s top restaurants scattered around the Museum of Islamic Art Park for the food lovers to explore, along with an array of

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Gulf Insider May 2014

live events and activities, the annual fourday festival had drawn quite a crowd.

For those who didn’t find an idea of open-air high altitude dining as appealing as we did, QIFF’s Diplomatic Club BBQ Donut offered a chance to enjoy a barbeque feast while floating around the bay in a donut–shaped vessel.

Alternatively, the visitors could master the art of cooking at Qatar Airways Cooking Theatre, which featured live demonstrations by celebrity chefs, as well as the international chefs of Qatar Airways, who proudly describe their onboard cuisine to be that of a five-star quality.

A diverse music entertainment – from Doha Jazz, through electronic violinist Patricia Mae, to DJ performances – reflected the organisers’ efforts to entertain the families with as many “wow factors” as possible.

As part of the festival, scores of celebrity chefs flew in from all over the world, joining Doha’s top restaurants much to the dining guests’ delight.

All in all, we were pleased to notice

The visitors could master the art of cooking at Qatar Airways Cooking Theatre, which featured live demonstrations by celebrity chefs. that one of the main themes prevalent throughout this year’s QIFF was healthy food, with plenty of wholesome traditional dishes on display.

Considering a very current issue of high obesity and chronic disease rates in Qatar and the region, with some 40 per cent of Qataris, majority of which are children, falling into the obese category, perhaps going back to a simple native cuisine, as opposed to the highly popular fast food option, would be worth considering.

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THE REAL TASTE OF ITALY RIALTO BARBAQUE NIGHT – Every Wednesday

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Unwind with your friends and family and feast to your heart’s desire on sizzling fresh meat cuts and fish, grilled and cooked to order. A healthy spread of salads on Buffet and Preplated desserts top your barbecue dinner. With plush Outdoor Al Fresco laid back atmosphere and relaxed—the right start to an enjoyable weekend!

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Gulf Insider May 2014

45

Hospitality Marriott Residence

TRAVEL

THE MARRIOTT RESIDENCE, BAHRAIN Gulf Insider’s Agnieszka Piechoska makes herself at home at Residence Inn by Marriott Manama Juffair.

I

f your lifestyle involves a great amount of business traveling, you will probably agree that it gets quite trying at times, not to mention lonesome, with countless hotel stays eventually merging into this one generic and forgettable experience.

For those fed up with such a state of affairs, Residence Inn by Marriott Manama Juffair takes hospitality to the whole next level.

The integral concept of this luxurious brand is to offer the travellers a unique blend of five-star hotel conveniences with an at-home atmosphere.

And indeed, my first and lasting impression upon arriving at the venue was that of a warm, cozy feeling, credit for which goes entirely to the approachable front desk team.

The staff here has earned an impeccable reputation, with one of

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Gulf Insider May 2014

them, I later learned, having been nominated for the prestigious Marriott Award of Excellence, which honours Marriott International’s employees for outstanding job performance.

So if you choose to book one of their studio, one-, two-, or three-bedroom suites, be ready for some serious pampering, from the moment you make a reservation until your departure.

As the service is tailored to every customer’s individual preferences, all your detailed requests are immediately stored in the internationally linked checkin system, which means that whenever you come back to any of Marriott’s 3,700 hotels, the staff will be able to recreate your previous experience as if you never left. Whether it’s your favourite bottled water brand, or the way you like your bed sheets to be folded, they are already ahead of you.

“Such personalised approach is not our going the extra mile; it is actually in line with our standard service,” I was told by Marriott Residence Inn Director of Sales Mr. Reggie Titus, as he showed me around the hotel.

The idea of a week-long stay away from the comfort of my home didn’t seem to be a problem anymore, after seeing the venue’s spacious suites, all of which come with separate sitting area, fully equipped kitchen, high-speed internet connection, breakfast service, home delivery from Marriott Executive Apartments’ excellent Skywalk Café, and even groceries delivery.

As I explored the usual hotel facilities, such as gym, sauna, swimming pool, and business services, I was surprised to find a self-service laundry room, which is available to all guests in addition to a regular laundry valet services.

Marriott Residence Hospitality

As the service is tailored to every customer’s individual preferences, all your detailed requests are immediately stored in the internationally linked check-in system. made necessary arrangements.”

Add to all these perks the fact that Marriott Rewards Elite Loyalty Program has been rated number one in Best Hotel Rewards Programs, and it is clear why many guests happily return on a regular basis.

“This is a part of our efforts to create a community environment for the residents. The room is equipped with sitting area and TV set, and more often than not our guests get a chance to meet their neighbours here,” Marriott Residence Inn Director of Rooms Operations Mr. Bartlomiej Mart explained, as he joined us for coffee at the breakfast lounge located on the ground floor.

The long-stay residents also get plenty of opportunities to socialise one-on-one with their neighbours and hotel management during the monthly

cocktail receptions, usually held at the Residence Inn or Marriott Executive Apartments property.

However Mr. Titus sees it, to me it does look like going the extra mile after all, especially when even the most unusual demands are fulfilled.

“I’ll give you an example,” Mr. Mart proposed, “Not long ago we received a heart-warming request from the wife of one of our long-stay residents. As she was based in US, she wanted us to arrange a surprise birthday party for her husband, on her behalf. We were immediately sold on the idea, and

“We have successfully created a truly casual environment for our guests, rather than formal,” Mr. Mart emphasized, “We want everyone to get that relaxed family feel during their stay. In fact, many times we grow attached to our longstay residents and get quite emotional whenever it’s time to bid farewell.”

For more information, you can call +973 1736 2900 or visit the website www.marriott.com

Gulf Insider May 2014

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Feature Profile

PROFILE

Yousif Al Thawadi, Bahrain’s 51-year-old Ironman triathlete.

H

ow did you get involved in competitive running?

I began running casually about six years ago, after a friend of mine and a wellknown professional runner, Mohsin Al Sharif, suggested that I give it a try. I joined local running groups, started taking part in short races, and – most recently – I competed in a triathlon.

One could say I’ve come a long way since the days when I would struggle with a mere three-kilometre distance.

Pushing your body to extremes, in what ways do you feel physically different at 51, than you did at say 31 or 21?

As a matter of fact, my fitness level has greatly improved since my twenties or thirties, when my main activities involved mostly cruising in a car. At 51, I am healthier than ever, and I am planning to remain this way.

Most people seem to let themselves go around a certain age, why do you think that is, and what is it that makes you different?

To me, this is more of a mental issue, rather than age itself. I am not different than anyone else; I just made a commitment to myself and worked consistently to reach my goal.

What advice would you give to the readers who consider joining in the next Ironman race?

This competition is very intense and quite monotonous at times, so you need to be committed 100 per cent to it. I followed an intense six-month crosstraining programme, and paid attention to the right nutrition, which is essential.

Was there any part of the triathlon for which you felt you weren’t fully prepared?

I can say I was mentally and physically ready, although I did find the swimming part extremely uncomfortable. Imagine over 2000 people simultaneously dive in, as the sound of the gun goes off.

It felt like a whirlpool, with everybody getting in the way of each other.

Has your success inspired others?

A few of my colleagues, both female and male, have already decided to take up the challenge. I hope my example proves to people of all ages that if you put your mind and commitment to it, everything is possible.

Yousif Al Thawadi

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The Ironman Triathlon covers a total of 226 km, including 3.8 km of swimming, 180 km of cycling, and a full 42.2 km marathon, which Mr Al Thawadi completed in an impressive 12 hours, 37 minutes and 16 seconds. He was the only GCC national to represent the region in Melbourne this year.

G-sensor watch Luxury

YOURS FOR US$625,000 Richard Mille launches its Sébastien Loeb tribute G-sensor watch.

W

ith his hands furiously working the steering-wheel of an 875hp Peugeot 208, as it scorched up Colorado’s Pikes Peak hill last summer, in a record eight minutes and 13 seconds, it is unlikely that Sébastien Loeb had much opportunity to check the time.

That has not, however, stopped Richard Mille from releasing a USD 625,000 limited edition wristwatch in the nine-time World Rally champion’s honour.

While some might say the timepiece is nothing more than a gimmick, with its G-force meter to gauge how hard the wearer’s body is being accelerated, slowed down, or shoved sideways in extreme situations, it truly reflects the current notion of the world of haute horlogerie.

A fine watchmaking has gradually become less about the business of timekeeping and more about the demonstration of technical prowess.

A fine watchmaking has gradually become less about the business of timekeeping and more about the demonstration of technical prowess.

In that regard, the RM 36-01 Tourbillon Competition G-Sensor Sébastien Loeb is undeniably impressive.

The rotary G-sensor might be a mere 17 millimeters in diameter, but it contains 50 components, and can display forces of up to 6G, with an option of setting the direction in which the force is to be measured.

The eye-watering price of the RM

36-01 is further accounted for by the exceptional materials used for the parts, with remarkably strong carbon fibre case band, grade-five titanium movement baseplate and bridge screws, and sapphire crystal dial.

The engineering that has gone into this watch almost rivals that of Mr Loeb’s record-breaking Peugeot. The manual winding movement features a tourbillon escapement, 70 hours of power reserve, a shock-resisting freesprung balance wheel, and a modular time-setting mechanism that is separate from the main movement for ease of maintenance.

Even the winding crown is special, featuring a “gate system”, similar to that of a car’s gear lever.

But if you have the inclination to own an RM 36-01 – and you have the necessary funds – you will probably have to drive as fast as Mr Loeb to get one, as only 30 pieces are being made.

Gulf Insider May 2014

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Fashion Massimo Dutti

MEN’S FASHION

MASSIMO DUTTI SPRING / SUMMER 2014 50

Gulf Insider May 2014

Get the summer look with Massimo Dutti’s seaside inspired collection.

Massimo Dutti Fashion

Available at all Massimo Dutti’s Bahrain City Centre. Tel. +973 1717 2325

Gulf Insider May 2014

51

Car News

CAR REVIEW

CAR NEWS Car Reviews and News

BMW 7 AND 6 SERIES GRAN COUPÉ “dominate” luxury market in Bahrain

BMW Group’s flagship 7 Series model continues to dominate the luxury sedan segment along with the BMW 6 Series Gran Coupé, according to Euro Motors, the BMW Group importer in Bahrain - both models accounted for a combined growth of 36.5 per cent for the first quarter of 2014 compared to the same period last year.

BIC HOST KARTING SPRINTS FINALE Bahrain International Circuit (BIC) last month staged the ninth and final round of the 2013/2014 Bahrain Karting Sprints Championship. The BKSC is comprised of both the Bahrain Rotax Mojo Max Championship and the Sodi Sprint W Series (BRMMC). The BRMMC is for Rotax kart owners, while the SSWS is for arrive-and-drive competitors.

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Gulf Insider May 2014

NEW BENTLEY

Set For GCC Arrival The new sporting Continental GT V8 S, is set for a Q3 arrival in the Middle East. Available as both a coupe and convertible, the new model brings added excitement to the Continental range with lowered and retuned sports suspension, sharper steering, dramatic ‘S’ signature styling cues and a distinctive soundtrack from the uprated V8 engine.

The GT V8 S coupe dispatches the 0-60 mph sprint in just 4.3 seconds (0-100 km/h in 4.5s) onto a top speed of 192 mph (309 km/h). The performance of the GT V8 S convertible is equally impressive, reaching 60 mph from a standing start in 4.5 seconds (0-100km/h in 4.7s) and a top speed of 191mph (308km/h).

Deliveries for the Middle East region start in August 2014.

NEW FERRARI 458 SPECIALE The new Ferrari 458 Speciale was launched in Bahrain last month by Euro Motors at a special event attended by the Ferrari Formula One racing team at the Ritz-Carlton Hotel.

News Car

NISSAN ME

among Top Record Breaking Brands

Nissan’s ‘Patrol Challenge’ media campaign has been recognized at the prestigious Festival of Media Global Awards.

In order to build brand awareness in the Middle East the Patrol Challenge was launched. The unique challenge saw an unmodified Nissan Patrol haul a 170-ton cargo plane for more than 50 yards, winning the Guinness World Record title for ‘Heaviest aircraft pulled by a production car’, smashing the previous record by 15.

NISSAN GT ACADEMY COMPETITION at Bahrain City Centre

JENSON CHOOSES ROLLS-ROYCE When In Bahrain

British Formula One World Champion Jenson Button swapped his single-seat track car for a refined and luxurious Rolls-Royce Ghost supplied by Euro Motors for his personal use while in the Kingdom during the recent Formula 1 Gulf Air Bahrain Grand Prix weekend.

Y.K. Almoayyed & Sons and Nissan Bahrain last month offered Practice Sessions of the Nissan GT Academy 2014 competition at Bahrain City Centre. GT Academy is a collaboration between PlayStation and Nissan that uses the virtual world of the Gran Turismo game to unearth real-world racing talent. The fastest gamers can progress to regional Finals and ultimately the winner could become a professional Nissan racing driver. In photo, Gulf Insider and Arabian Magazines publisher Nick Cooksey gives it his best.

BMW 2 SERIES ARRIVES EuroMotors welcomed the arrival in Bahrain of the new BMW 2 Series last month with a media launch at the Royal Golf Club in Riffa. The name, 2-Series, is based on BMW’s rationalization of its model designations reserving odd numbers for 4-door sedans and even numbers for 2-door coupes and coupe-like cars.

PORSCHE’S ALL-NEW MACAN The world’s first sports car in the compact SUV segment, the Macan, was revealed by Porsche Centre Bahrain, Behbehani Brothers w.l.l., at The Gulf Hotel in Manama, last month.

The introduction marks Porsche’s pioneering move into a new segment. Equipped with a 3.0-litre V6 biturbo engine, delivering 340 hp, the vehicle accelerates from 0 to 100 km/h in 5.2 seconds (when equipped with the optional Sport Chrono package) and reaches a top speed of 254 km/h. The name Macan comes from the Indonesian word for tiger

Gulf Insider May 2014

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Car News

NEW US$25 MILLION SHOWROOM for Jaguar Land Rover

Euro Motors, announced their new two-level showroom, designed especially for Jaguar Land Rover, which is expected to open in April 2015. The USD 25 million worth outlet will be located adjacent to the existing Euro Motors showroom in Sitra, and will cover the area of 5,000 square meters. Commenting on the scale of the investment, Zayed Al Zayani, Managing Director of Jaguar Land Rover said: “This is Euro Motors’ most aggressive investment strategy on showroom development in recent years. It will not only reinforce our status as a leader in our category, but also set a benchmark for all other dealers in the industry.”

MOTORCITY LAUNCHES BRAND NEW SHOWROOM

for Volvo, Subaru and Citroen

Motorcity has officially launched their new dedicated showroom last month, which hosts Volvo, Subaru, and Citroen. Mr Waleed Kanoo, Chairman of Motorcity, welcomed the guests at the launch, and added: “Motorcity is a perfect example of synergy between various brands of different origins, different characteristics and strengths in the automotive industry.” The showroom is organised into three main areas for each brand, featuring specialised customer service desks, as well as a dedicated clients lounge area, and in-house exclusive lifestyle boutiques.

On the occasion of the new showroom launch, Motorcity has announced a very special offer on its entire range of brands and models. You can find the details on the Motorcity’s new website (www.motorcity.com.bh).

TOYOTA Unveils Most Advanced Hybrid Technology in Modern Racing TOYOTA Racing took the wraps off the new TS040 Hybrid, the car which will take the team into the 2014 FIA World Endurance Championship (WEC) and a new era of hybrid powered motorsport. The new car represents the most advanced hybrid technology in modern racing and made its competition debut at the season-opening Six Hours of Silverstone race on 20 April.

TOYOTA is taking on rival manufacturers with a car that benefits from 480PS of all-wheel drive hybrid boost in addition to the 520PS produced by its 3.7-litre V8 petrol engine, taking maximum power to 1,000PS. The new powertrain has been developed in line with revised WEC technical regulations, which put an emphasis on fuel economy.

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ly al d n tio ze na gni am r te o r In Rec rog P

Join this unique, powerful, dynamic and easily applied course led by renowned leadership and development trainers.

Leadership Development Program Unleash Your Full Leadership Potential

• 18 – 19 May, Abu Dhabi, UAE • 21 – 22 May, Dubai, UAE

• 25–26 May, Manama, Kingdom of Bahrain • 27–28 May, Kuwait City, Kuwait

Don Power, has extensive background in sales and marketing over 35 years. This experience includes senior sales management positions in the automotive industry before entering the top end of the commercial property market with the international property firm, Richard Ellis's Australian Office.

Don is the Managing Director of Power+ Executive Evolution Australia.

Julie is an Executive Coach, Corporate Trainer and a Master Practitioner in Neuro Semantics and NLP. She has been at the forefront of training and team development for many years having worked throughout Australia and more recently in Asia where her talent for executive development and innovative training style have made for a lively and entertaining executive development experience.

Julie Burkett is the Managing Director of Paradigm Training Australia.

Benefits of Attending Include: • TWO highly acclaimed, international executive coaches and corporate trainers presenting • Learn a proven system of leadership and performance enhancement • THREE months on-going leadership and executive evolution coach support • Pre-course questionnaire to identify your specific training needs • Comprehensive course manual workbook • Certificate of Attendance (Corporate Coaching) upon demonstration of competence • Strictly limited number of participants

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Car Jeep

CAR REVIEW

JEEP CHEROKEE 2014

Does it line up to Jeep’s iconic 4x4 image? Review by Nick Cooksey 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.

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Jeep Car

J

eep is an American brand whose product range currently consists solely of sport utility vehicles and off-road vehicles.

Jeeps were produced in 1941, making it the oldest off-road vehicle ever made, and the first civilian models were produced in 1945. It inspired a number of other light utility vehicles, such as the Land Rover which is the second oldest 4-wheel-drive brand.

For historical as well as iconic reasons, Jeeps are expected to be good for offroading, perhaps more than any other SUV. This is a tough standard for the company and not something I was really able to test for myself in this Cherokee, though I have had the pleasure to have been off-roading in the Cherokee’s rugged stable mate, the Jeep Wrangler.

The Wranglers’ power, lightness and overall ability to climb sand hills and get itself out of all sorts of sticky situations so impressed me that I told myself that if I were to buy an SUV purely for offroading, the Jeep Wrangler would be my first choice.

Well, the Cherokee is no Wrangler – it doesn’t pretend to be and isn’t designed to be, but if you’re looking for a solid SUV to be used mostly for the road, but with the option of taking it off for a bit of rough from time to time, then this could be a fair compromise. The Cherokee is far more ‘civilized’, more comfortable on the road, though it clearly has off-road capabilities.

The exterior has modern lines while retaining a look that says it’s still a Jeep.

Under the hood there’s a 3.2 litre 24 valve V6 available that offers 271 horsepower and is capable of pulling 4,500 pounds!

A 9-speed automatic transmission sends power to the front wheels or all four wheels. Driving around Manama I found the ride to be smooth, and surprisingly quiet.

There are three drive setups. Active Drive I apportions drive to the rear wheels, disconnecting them when not needed. Active Drive II adds the ability to vary torque from front to rear and locks the front and rear together for maximum traction. Active Drive Lock is for off-roading and adds a locking rear differential to the above setup.

The suspension has been improved

from the previous model and makes the ride higher by an inch.

Inside, the vinyl and plastics are functional and soft to the touch. The leather steering wheel is nice and thick to hold. There is a large LCD in the instrument panel and a big 8.4-inch screen powers the infotainment system.

in this car. The front passenger seat has a hidden cubby under the cushion, there’s a place on top of the dash, door pockets, map pockets, a place for your mobile phone next to the USB port, a tiny pocket in the door armrest, and in front of the center armrest is a cavity for holding something shaped unlike any

The Cherokee is far more ‘civilized’, more comfortable on the road, though it clearly has off-road capabilities.

Bluetooth audio streaming and messaging enables read aloud via textto-speech software or displayed on the screen when parked. Drivers have the option to reply to these messages with standardized responses such as “I’m running late. Sent from my Jeep” There’s a rear camera with dynamic trajectory lines fitted as standard.

Optional extras include blind spot monitoring, forward collision alert, lane departure warning systems, and adaptive cruise control with stop-and-go.

And finally – I couldn’t help but notice the huge amount of storage spaces

object I have ever seen. Pockets have sturdy rubber inserts that can easily be pulled out and cleaned. In the back there’s hooks to hang bags.

It’s as if the people at Jeep set themselves a challenge to create as much storage locations inside the car as absolutely possible. This vehicle is a dream for people who love to store stuff.

To arrange your own test drive in Bahrain, contact Ahmed Zayani & Sons on + 973 17-238 822

Gulf Insider May 2014

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Car Benz GL500

CAR REVIEW

MERCEDES-BENZ GL500 Nick Cooksey spends a day with Mercedes top of the line SUV.

T

he GL500 is a very big car, measuring over 5 meters in length and weighing 2.5 tons.

It is for big families that need an SUV and want to travel in supreme comfort. If you need to carry seven people in Business Class luxury, at high speed, with the option of driving both on and off road, this may just be the car for you.

The GL is for those who believe the ML, Mercedes biggest selling SUV, isn’t quite big enough for them. It’s approximately 30 centimeters longer than its ML sister, with which it shares many components. The extra length allows the GL an additional row of seats.

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Gulf Insider May 2014

The luggage area is a bit tight when all seats are in use, but electronically at the push of a button the rear seats fold and there’s much more space.

The GL-Class looks solid and impressive. The model I drove had the optional AMG body kit that makes it look more aggressive. The huge grille further added to its road presence.

Despite this being a monstrously big car, step on the accelerator and you would think you were driving a performance car. Its 4.6 liter bi-turbo V8 engine knocks out 429 BHP and 700 Nm of torque, and the adaptive suspension makes the GL feel like its gliding along the road, and there’s very little engine

sound when driving in normal mode.

Switch to sport mode and the GL lowers itself, suspension becomes stiff, steering becomes tight and acceleration becomes faster – zero to 100 kph in just 5.8 seconds! And if that’s not fast enough (er.. really?) there’s always the AMG version.

Mercedes claim that the latest 2014 GL is 18 per cent more economical than its predecessor. It’s also better looking.

Inside, the GL is fitted with luxurious materials, and real wood trimmings. It’s also full of all sorts of safety features and other useful technology like park assist, adaptive cruise, blind spot detectors, drowsiness detection and

Benz GL500 Car

Mercedes claim that the latest 2014 GL is 18 per cent more economical than its predecessor. It’s also better looking.

The Specs     

Engine Turbocharged 4.6L V8 Gearbox Seven-speed automatic Power 435hp @ 5,250rpm Torque 700Nm @ 1,800rpm Fuel economy, combined 11.5L/100km

Pre-Safe, which prepares occupants for an impact, lane change assist, satnav, climate control, reverse parking camera, rear seat entertainment, Bluetooth, internet and more. There’s nine airbags (dual front, front and rear side, side curtain and a driver’s knee airbag.

If I did have to find any fault, I found the wing mirrors to be a bit small though I

suppose it can be argues that the blind spot detectors compensate for this.

There is a 360 degree camera which is available as an optional extra and is a major help for parking, as you get a birds-eye view of your surroundings, making squeezing into even the tightest spots relatively easy. I don’t know how much this option costs but I feel anyone who buys a GL without it would come to regret such a decision.

Sadly I didn’t get the chance to take the GL off road so I cannot discuss its offroading abilities, but based on my overall experience of this car I would be surprised if it didn’t impress.

To arrange a test drive in Bahrain contact Al Haddad Motors on +973 17-785-454

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 May 2014

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BIC Drag and Drift

DRAG AND DRIFT NIGHTS @BIC

B

ahrain International Circuit (BIC) is hosting highly popular Drag and Drift Nights, sponsored by Ebrahim K Kanoo and Motor City. Scores of fans turn up at each event either to take part or watch others in action, the last was held last month on April 14.

At these events, drag racing and drifting lovers of all skill levels can put their abilities to the test in their very own cars or motorbikes.

BIC’s world-class quarter-mile drag strip, which is a member of the prestigious National Hot Rod Association (NHRA) Worldwide Network plays host to all the drag racing. The drifting takes place along a special course at BIC’s car park.

Safety standards of the highest international level are followed at all times during the evening’s events, ensuring that both drivers and spectators can enjoy the action with peace of mind.

As part of the drag racing programme, BIC is offering the popular Dragster Xperience which gives participants a taste of pure adrenaline as they are taken from zero to 100kph in just one second – The Dragster Xperience costs BD40 per person.

Also drifters give their all as they take on the sharp turns of a challenging course. Their maneuvering and car control skills are put to the test as they 60

Gulf Insider May 2014

attempt to swerve and powerslide across the tarmac in the least possible time.

Both activities can be enjoyed for a single fee of BD10. Participation in just the drag racing or the drifting costs BD7.

Registration can be done on site from 5pm, and the action is held from 6pm to 11pm.

Those who would like to experience the drag or drift as a passenger can get into a friend’s car for an additional BD4 for each event.

All vehicles must go through mandatory safety checks before being allowed to take part.

Spectators can purchase tickets for BD2 apiece.

All the action on the strip can be enjoyed from BIC’s Batelco Grandstand, where fans have the most comprehensive view of the straight. Those watching the drifting can be seated at a grandstand alongside the course.

To find out more about Ebrahim K Kanoo Drag and Drift Night, powered by Motor City, visit the circuit’s official website, www.bahraingp.com, or call the BIC Hotline on +973-17-450000.

Louis Vuitton Feature

LOUIS VUITTON

CARBON FIBRE LUGGAGE FOR BMW I8

PUTIN’S NEW ORDER IN THE MIDDLE EAST

V

ladimir Putin has almost by stealth transformed himself into an historic Russian figure.

Since 1999 Putin’s growing power transposed itself in foreign affairs and nowhere did Russia’s reemergence on the world stage have more impact than in the Middle East. Russia’s new role and identity had its roots in the late Yeltsin era but Putin has subtly deflated the balloon of US power by cleverly manipulating developments in the Middle East including Iraq, Lebanon, the PalestinianIsraeli conflict, the Syrian revolution

By Talal Nizameddin

and other regional issues.

Yet twenty years earlier Russia was a very different place, and as it took its first fragile steps in a world full of dangers, the Middle East was not a top priority. This book charts the remarkable conversion in Russian Middle East policy that developed after the turning point in 2005-2006, which mirrored Putin’s turn to unbridled authoritarianism. It remains to be seen whether Putin’s increasingly pugnacious Middle East policies can be reconciled with Russia’s long term interests economically and strategically.

L

ouis Vuitton has created a tailormade set of carbon fibre luggage for the BMW i8 comprising two travel bags, a business case and a garment bag. To ensure optimal use of space, the luggage items have been tailor-made to fit perfectly into the interior of the BMW i8.

The understated carbon-black travel bags all bear the unmistakable chequered Damier pattern – a Louis Vuitton hallmark – and a laser-etched Louis Vuitton signature. Black and electric blue used in the microfibre lining take their cue from the trademark brand colours of the BMW i8 and bag handles are made from dyed natural leather.

All items in the collection come with leather name tags and the iconic Louis Vuitton padlock with the exception of the garment bag.

The Louis Vuitton luggage series are available upon request in a selection of Louis Vuitton stores worldwide.

‘It is impossible to understand the contemporary Middle East without understanding the interests and role of the Russian Federation. Nizameddin provides an innovative analysis of the foreign policies pursued under Putin’s presidencies in this explosive region.

If you read just one book on Russia and the Middle East, read this one.’ — Peter J.S. Duncan, Senior Lecturer in Russian Politics and Society, School of Slavonic and East European Studies, University College London.

‘Talal Nizameddin has written a fascinating book on an important topic. This is a most useful guide to anyone trying to understand Putin’s overall strategy in the Middle East as well as providing some answers to those of us wondering why Russia continues to support the Assad regime in Syria.’ — Mike Bowker, Senior Lecturer in Politics at the University of East Anglia, UK, and author of Russia, America and the Islamic World.

Gulf Insider May 2014

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Art Photography

FROM ACTION TO ART

Gulf Insider’s Syed Sohail Ali’s outstanding shots take us closer to the fast-moving world of F1.

A

Bahrain-based sworn art enthusiast, Syed Sohail Ali has been working with camera lens since 2005, with an eye for motorsport and landscape photography and a passion to fuse both. Holding managerial position at Cathay Pacific, Syed shares his spare time between honing his guitar playing skills and building his creative portfolio, which includes some truly captivating images shot during all the major motorsport events in Bahrain and UAE. In addition to working with Gulf Insider at F1 events, his photographs have been featured in Top Throttle Motorsport Magazine, Performance Magazine, 24X7 Bahrain Online Newspaper, and various online motorsport websites. Be it Formula One or V8 Supercars Championship, you can be sure to find him on the front line, capturing the action. His latest project was the coverage of this year’s Bahrain Grand Prix, and we are delighted to present the remarkable results.

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Syed Sohail Ali

Photography Art

Gulf Insider May 2014

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Art Photography

His latest project was the coverage of this year’s Bahrain Grand Prix.

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The Bahrain based lifestyle and luxury magazine with style and editorial flare that is enjoyed by affluent customers - both

Guide to Arabian life, luxury and fashion!

Complimentary Copy

Arab and Expats.

Online edition at www.Bahrain-Confidential.com

137 Issue

Bahrain Gets ‘REAL’ Reality TV Looking For your Dream Home?

Discovering Bahrain’s Heritage

Luxury Homes in the UK

The Arabian Horse

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Last word

D

GULF INSIDER MEETS RED BULL TEAM PRINCIPAL

CHRISTIAN HORNER

Horner insists Red Bull will not be giving up their Formula One world titles without a fight.

uring last month’s Bahrain F1 Grand Prix, Gulf Insider was invited to have dinner with Christian Horner at the Red Bulls team principal to discuss his strategies and tactics (at least those he felt he could share for publication).

Despite the cramped kitchen facilities of the Red Bulls team base, one of the villas in the paddock at BIC, the Spicy tomato soup – made from fresh ingredients, and the entrecote that followed was as delicious and well presented as any five star hotel, proving that these F1 racing teams don’t just seek the very best drivers and mechanics for their teams, but the best chefs also.

Anyway, what did I learn from Mr. Horner? Well, after four years of Red Bull domination of F1, the team is now having to chase Mercedes who are the new stars having surpassed all their rivals in technical innovation and who have mastered the new regulations for this season far better than anyone else.

Horner said: “It’s a big gap we have to close on Mercedes - we are down by a long way on straight-line performance compared to Mercedes, but our guys are working hard on closing that gap.”

Horner added that he was hugely impressed with how his team had been able to make such considerable improvements in such a short period of time, particularly taking into account the dire technical troubles they suffered from during testing performances in Bahrain just a few weeks earlier when Red Bull cars appeared unable to even finish a race.

With China next up, Horner said; “In China, Mercedes again will be extremely difficult to beat. Once we get back to Europe we must start to make inroads.”

UPDATE Since our meeting, Vettel has begun F1’s new era in the unusual position of fielding questions over his form following the impressive start to the season made by his new team-mate Daniel Ricciardo.

With neither the driver nor his team attempting to hide Vettel’s current problems, Horner explained “Sebastian’s having a tough time at the moment because he hasn’t got that feeling from the car he’s looking for”. Horner, however, is sure Vettel’s loss of form will only be temporary, adding; “He’s a team player at the end of the day”.

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Gulf Insider May 2014

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