Gulf Insider - May 2020

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APRIL-MAY 2020 | ISSUE 182

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Gulf Financial Insider

Contents April - May 2020 Issue 182

26 14 20 23

Keypoint: Implementing VAT for car warranties

24 26 28

What does COVID-19 mean for wages in Bahrain?

14 Simply unparalleled online presence that connects region’s most inspired communities.

38 44 48 50 54 57

Confessions of a woman war journalist The COVID-19 crisis is a difficult time Are expats giving up?

Bahrain BeAware App: What all must you know? 5 trends retailers should know for the post COVID-19 GCC market Bahrain’s financial sector adapts to the pandemic Hotels and hospitals join hands to fight COVID-19 Remote working in the Gulf – Bahrain leads the way Qatar keeps cool CAR - Porsche Taycan Read our Bahrain Test Reviews Online


Knowledge is power

Publisher & Editor in Chief

Nicholas C. Cooksey

Comment...

Editorial

Aswini Vijayakumar

Editorial Contributors

Hugh Haskell-Thomas Nicholas Cortes Bill Daly

Sales & Business Development

Charlie Cooksey

A picture is worth a thousand words.

Layout Designs

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Here's last month’s most 'Liked' #BestInBahrain picture posted to our social media.

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P.O. Box 26810, Kingdom of Bahrain Tel: +973 1700 4575 Fax: +973 1772 1722 Printed at Awal Press, Kingdom of Bahrain. Registered with Ministry of Information approval no. TFI-431©. No part of this publication may be reproduced in any manner without the written permission of the publisher. All Rights Reserved. Views expressed in this magazine are not necessarily those of the publisher. Bahrain Bd2 | KSA sr20 | Kuwait Kd1.75 | Oman ro2 | Qatar Qr20 | UAE dHs20

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The multi-award winning Arabian Magazine

The multi-award winning Arabian Magazine

Women in Business 2020

44,490 People Reached 1,260 Reactions, Comments & Shares

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Gulf Insider speaks to some of the leading businesswomen in Bahrain

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MArch 2020 | ISSUE 181

Bahrain Bd2 | KSA sr20 | Kuwait Kd1.75 | Oman ro2 | Qatar Qr20 | UAE dHs20

Benefit from Cashless Payments FEBrUAry 2020 | ISSUE 180

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The multi-award winning Arabian Magazine

The multi-award winning Arabian magazine

Send us your own photo – it could be featured next! JAnUAry 2020 | ISSUE 179

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Ithmaar Bank

The region’s first biometric bank Interview with Mr. Ahmed Abdul Rahim, CEO DEcEmBEr 2019 | ISSUE 178

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Winners

of the Bahrain Award for entrepreneurship Fourth edition - 2019

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People & Culture

World’s largest 3D-printed building opens in Dubai … completed in just 2 weeks of construction.

Q

uickly gaining popularity as an affordable and sustainable way to build, 3D printing is becoming a go-to construction choice for architects around the world. In fact, one US company, Apis Cor, well-known for its 3D-printed architecture, has just completed construction on the world’s largest 3D printed building. Located in Dubai, the 6,998-square-foot building was completed in just two weeks. Although the company is accustomed to building in various parts of the world, Dubai‘s harsh conditions put its standard methods of printing to the test. Dubai is known for its severe climate, in which the temperatures rise and drop suddenly. As such, the materials used in the printing process for this particular building had to be able to withstand extreme heat and cold. “The Dubai climate is very harsh — temperature and humidity change

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Gulf Insider April - May 2020

World’s largest 3D printed building located in Dubai, the 6,998-squarefoot building was completed in just two weeks. significantly even within a day,” said Nikita Cheniuntai, founder and CEO of Apis Cor. “The material has to behave the same way all the time, despite the changing environmental conditions.” Working on such a large project presented additional challenges. The construction site spanned approximately 7,000 square feet, which, under

normal building circumstances, would require assembly of ample scaffolding. However, because the company’s custom, car-sized 3D printer is mobile, the building was constructed directly onsite faster and more efficiently than a traditional construction project. Along with three workers and a single construction crane, the machine printed out the structure section by section using gypsum-based mixture. Later, traditional constructions methods were used to install the windows and roof, and rebar supports were added to reinforce the walls. The resulting building, which will house administrative offices for the Dubai Municipality, has a white facade that reflects the sun rays. The concrete and gypsum printing materials created by Apis Cor also provide the building with a naturally insulated envelope, keeping the interior at a pleasant temperature year-round.


News Roundup

Bahrain Seen from Al Khobar, Saudi Arabia Due to Reduced Pollution Bahrain is now clearly visible from Al Khobar in Saudi Arabia, a distance of 40 kilometers. This was due to the reduced air pollution from coronavirus lockdowns. Lockdowns restricting travel and industry imposed to halt the spread of coronavirus have

Bahrain: Residents Start Receiving Messages for Random Coronavirus Testing The Ministry of Health is continuously selecting citizens and residents to test for the Coronavirus (COVID-19). Several individuals reported that they have received text messages from the Ministry of Health notifying them of a test schedule. The test will take place at the drive-through testing facility at Bahrain International Exhibition and Convention Centre. The Ministry stated that the tests do not exceed 5 minutes and selected individuals are required to bring a valid ID for identification purposes. Individuals may be accompanied by family members, who will also have the option to get tested, provided that the individuals and their accompanying parties all arrive together in the same vehicle.

Bahrain: Chronic Patients to Benefit from Home Delivery of Medicines

Coronavirus: Two Bahrainis Bring Fashion World to Masks As the world combats the spread of the novel coronavirus, two Bahraini entrepreneurs are adding a little color to an item that is now almost part of everyday life — masks. Noor Khamdan and Nada Alawi want to raise awareness and add enthusiasm to wearing masks. Khamdan’s designs include symbols from Gulf culture, ranging from the traditional ghutra (headdress) or the Bahraini flag to the local viral hashtag #Team_Bahrain. Bahrain has made it mandatory to wear masks outside the home, having eased some restrictions at the start of the Muslim fasting month of Ramadan.

The Department of Health and Social Affairs at the Ministry of Interior has launched a campaign to deliver medicine to patients suffering from chronic diseases, whether at work or at home. Volunteers from different sections of the department are taking part in the initiative under the theme “Your Health a Treasure”. The department will soon launch the initiative electronically to ensure the health and safety of the ministry’s personnel. Gulf Insider April - May 2020

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Finance

Implementing VAT on Car Warranties

T

he motor vehicle industry is rife with complex VAT issues. From manufacturer rebates and incentive payments to dealer financing and the profit margin scheme, finance managers are busy complying with VAT. With the National Bureau for Revenue (NBR) imposing hefty fines for non-compliance, it is more important than ever to ensure the correct VAT treatment is applied.

Repairs under warranty In Bahrain, warranty repairs are generally performed by the motor

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Gulf Insider April - May 2020

The VAT treatment of the costs recovered from the manufacturer depends on whether the cost of the warranty was included in the sale price of the vehicle.

vehicle dealer who sold the vehicle, who then seeks recovery of the costs incurred on the repair from the manufacturer. Recently, the NBR released a public clarification on the VAT treatment of repair services conducted under warranty. A public clarification is essentially the tax authority’s view on the VAT implications – so it is mandatory reading for motor vehicle dealers. The NBR’s view is that dealers do not need to charge VAT to customers for warranty repair services as this service is out of scope for VAT - the repair services are not viewed as a separate supply to the supply of the goods.


Finance

The VAT treatment of the costs recovered from the manufacturer depends on whether the cost of the warranty was included in the sale price of the vehicle. The NBR has stated the warranty cost will be viewed as forming part of the sale price if the cost of the warranty forms an integral component cost element of the sales price of the good sold. If the warranty cost is embedded in the sale price, VAT is only payable

In Bahrain, warranty repairs are generally performed by the motor vehicle dealer who sold the vehicle, who then seeks recovery of the costs incurred on the repair from the manufacturer.

on any margin earned by the dealer when performing the warranty repairs. If the dealer does not earn a margin (that is, only recovers costs from the manufacturer), the costs recovered by the dealer from the manufacturer are out of scope for VAT. The tax authority has not indicated how dealers should calculate the margin on their repair services, but as a tax invoice must be issued for taxable supplies, it seems there is potential for margins to be disclosed. If the warranty cost is not embedded in the sale price, VAT at the standard rate (5%) is payable on the warranty repair services. This could become an irrecoverable cost for overseas manufacturers. The NBR has clarified that extended warranties and repair services

performed by third parties are subject to VAT at 5%. If warranty repair services are performed on goods sold prior to VAT implementation, the repair services may still be subject to VAT. The VAT implications of warranty repair services cannot be ignored merely because they relate to goods sold prior to the imposition of VAT.

What should you do? Firstly, you should determine whether the cost of the warranty is included in the sale price of the vehicles you sell to customers – as this will dictate the VAT treatment of any repairs under warranty. If the warranty cost is included, you should only charge VAT on any margin earned on repairs. You will need to determine your margin, both on services and parts. As the supply is subject to VAT at 5%, a tax invoice should be issued. If the warranty cost is not included in the sale price of the vehicle, you will need to charge VAT on the repair services. Historically, if you have been charging VAT to the manufacturer on the full warranty repair cost, you may have overpaid VAT and should investigate how this can be recovered. If you earn a margin and have not charged VAT at all, you may owe the tax authority money. The above issues equally apply to other retailers that sell goods with a warranty.

Mubeen Khadir is a senior director at Keypoint where he leads the tax advisory function. All opinions expressed in this article are his own. For more, please follow us on Instagram, visit our website or sign up to our weekly TaxFlash. For more, please see keypoint.com or @keypointme. follow us on Gulf Insider April - May 2020

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News Roundup

US Crude Oil Collapses Below $0 For First Time in History

Bahrain: Tamkeen Starts Disbursing Financial Support to Private Sector Tamkeen is supporting the private sector by off-setting the impact of the global spread of the Coronavirus (COVID-19) through the Business Continuity Support Programme. The support programme will be providing financial grants to adversely affected small and micro enterprises to help them cover their operating expenses. The Chairman of Labour Fund Tamkeen, Shaikh Mohammed bin Essa Al Khalifa, noted that Tamkeen has begun disbursing the first installment of the financial support to small and micro enterprises following the successful evaluation of their applications. He added that Tamkeen has received more than 17,000 applications for the Business Continuity Support Programme in a span of two weeks. The financial grants will continue to be disbursed over the next period until all requests are completed.

Bahrain: OFWs Seek Repeal for Hike in Health Insurance Payments The Philippine Health Insurance Corp. (PhilHealth) reiterated it has increased the contribution of overseas Filipino workers to 3.0% of their monthly salary, but opposition to this measure is gaining traction online. OFWs whose monthly income ranges from P10,000 to P60,000 must pay 3.0% (an increase from 2.75% in 2019), the stateowned agency mandated.

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American crude faced a wipeout as US traders confronted the reality of a world awash with oil and nowhere to put it. West Texas Intermediate, the US benchmark, sank like a stone, hitting, then crashing through, historic lows. From a start above $18, at one point it was trading at a symbolic 1 cent a barrel — effectively worthless. When New York trading ended, WTI was in negative territory for the first time ever — minus $37.63 a barrel, as traders were forced to pay others to take it off their hands. “The May crude oil contract is going out not with a whimper, but a primal scream,” said oil analyst Daniel Yergin of IHS Markit. Demand for all energy products has been crippled by the COVID-19 pandemic, which has lopped about 30 percent off normal daily requirements. The historic deal between Saudi Arabia and Russia in the OPEC+ alliance removed less than 10 per cent from global supply. Brent, the Middle East benchmark, also fell on worries about oversupply. However, the decline was less severe, mainly for technical and logistics reasons, and it traded about 7 per cent down at about $26 per barrel. The collapse in the price of US oil comes after President Donald Trump helped broker the OPEC+ supply deal,which he said would save “hundreds of thousands of jobs” in the US oil industry. Since then, the American shale industry’s rig count, the number of wells in operation, has declined sharply as producers either cut production or went out of business.


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News Roundup

Bahrain Converts Public Buses into Mobile Screening Units

Bahrain: Stimulus Package Beneficiaries Receive April Salary Private sector companies have started disbursing April salaries to employees registered with the General Organisation for Social Insurance (GOSI). The move is in line with the royal directives to launch financial and economic stimulus packages in support of Bahrainis working in the private sector and ensure the payment of their salaries for April, May and June, amid nationwide efforts to combat the novel coronavirus (COVID-19). Labour and Social Development Minister Jameel bin Mohammed Ali Humaidan said that most GOSI-registered citizens working in the private sector have been paid their wages for April. The Ministry of Labour and Social Development has announced the opening of communication channels with the concerned citizens, in order to report and register complaints in the event of non-receipt of the wages of the month of April. Employees intending to file complaints for non-receipt of wages are required to dial phone numbers 17873919, 17873918, 17873913, during the official working hours, or send a notification via e-mail insp@mlsd.gov.bh.

Bahrain has converted a number of public transport buses into mobile screening units to support random checks in various blocks. The screening units are fully equipped according to the medical standards. It was first launched on Thursday, April 23, 2020 at the exhibition center in Seef district with a specialized medical team consisting of doctors and nurses. The mobile screening units conducted random tests on people in Manama. The Ministry of Health also said that the mobile screening units will conduct random tests every day in Manama and Exhibition Road at 3 pm and 6 pm respectively. This initiative comes in line with the national efforts to prevent and limit the spread of coronavirus (COVID-19). The Bahrain Public Transport company had recently announced a change to its bus timetable and withdrawal of few services. The buses had also implemented social distancing for the safety of the passengers.

Saudi: Hospital Uses Robot Medic to Treat COVID-19 Patients A robot medic is being used to treat coronavirus disease (COVID-19) patients in a Saudi hospital. The hi-tech machine is capable of carrying out tests and making diagnoses on people suspected of having contracted the killer virus. By using the robot, health officials aim to curb the spread of COVID-19 among medical and nursing staff, as well as patients, while conserving stocks of personal protective equipment and other preventive medical supplies. The robot had been installed with medical devices such as a stethoscope, otoscope, eye camera, and a camera specialized in examining the skin from afar through a built-in highresolution lens. The robot had been given automatic access to isolation rooms and could be programmed to move between them and sanitize after leaving each room. 18

Gulf Insider April - May 2020


News Roundup

Coronavirus: US Authorises Use of Remdesivir Drug for Treatment The US’s Food and Drug Administration (FDA) has authorised emergency use of the Ebola drug remdesivir for treating the coronavirus. The authorisation means the antiviral drug can now be used on people who are hospitalised with severe Covid-19. A recent clinical trial showed the drug helped shorten the recovery time for people who were seriously ill. However, it did not significantly improve survival rates. Experts have warned the drug – which was originally developed to treat Ebola, and is produced by Gilead pharmaceutical company in California – should not be seen as a “magic bullet” for coronavirus. The drug interferes with the virus’s genome, disrupting its ability to replicate. In its clinical trial, whose full results are yet to be released, the US National Institute of Allergy and Infectious Diseases (NIAID) found that remdesivir cut the duration of symptoms from 15 days down to 11. However, although remdesivir may aid recovery – and possibly stop people having to be treated in intensive care – the trials did not give any clear indication whether it can prevent deaths from coronavirus. As much remains uncertain about the treatment regime, Gilead suggests a 10-day dosing duration for patients on ventilators and five days for patients who are not.

Bahrain Receives Hydroxychloroquine from India Bahrain received a shipment of Hydroxychloroquine, following the export approval issued by the government of India. The drug has been used as part of Bahrain’s treatment protocol for active COVID-19 patients. The Ministry of Foreign Affairs reiterated the importance for all countries to unite and join efforts to combat the novel coronavirus (COVID-19) pandemic.

Bahrain: MOH Refers Citizens to Self-Isolate at Home The Ministry of Health has announced the referral of citizens from quarantine centres to selfisolation at home in accordance with resolution no. 25 for the year of 2020, issued by the Minister of Health. The resolution sets out home self-isolation health regulations that suspected and active coronavirus (COVID-19) patients are obliged to follow. The ministry stressed that all those who are ordered to self-isolate are required to sign a selfisolation declaration form and adhere to home self-isolation guidelines for a minimum of two weeks. These measures include downloading the “BeAware” app and wearing an electronic bracelet to enable expedited public health management. The ministry reiterated that these public health procedures have been established to ensure the safety of patients and the community. The ministry noted that citizens who have been relocated to home self-isolation include returnees to Bahrain from abroad. It added that contacts of active cases are already being referred to home self-isolation for two weeks. Patients who have recovered from COVID-19 are obliged to self-isolate at home for a period of 4 weeks, and are tested regularly to ensure they have completely recovered from the virus. Individuals may book a COVID-19 test via the “BeAware” app after the home self-isolation period has ended, and can proceed to the Bahrain International Exhibition and Convention Center on the appointment date provided. Gulf Insider April - May 2020

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People & Culture

AP Images

Confessions of a

woman war journalist It sounds trivial, but for women journalists how you dress matters, far more than it ever does for men - By Ann Leslie

T

he handbag has played a major role in my career as a female foreign correspondent. When some axe-faced bureaucrat, immigration official or security apparatchik points out (correctly) that I do not have the required papers, I heave my handbag on to the desk and insist,

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Gulf Insider April - May 2020

‘Oh, but I do! It’s just that I can’t find them!’ Then I begin searching through the bag, fishing out bits of old make-up, broken car keys, snaps of husband and daughter, eyebrow pencil, airline socks, false eyelashes, broken Kit Kats, parking tickets, a Tina Turner CD, spare tights, dead batteries, empty pill-bottles and an

ancient recipe for Irish stew (which I’ve never made). After a while, the blocking official begins to get exasperated: he does not want to see all this rubbish piling up on his desk, and he does not want to listen any more to the twitterings of this silly woman. Besides, he is by now convinced that failure to produce the


People & Culture

There are snipers everywhere! This is the most dangerous place in the world right now!’

right papers is not sinister, but merely proof that I’m terminally disorganised and batty. Rather than endure any more, he’ll often, with patronising weariness, wave me through. A woman in a danger zone also has the tremendous advantage of being able to employ her bra for several different purposes. If, as in my case, your bra is quite capacious, you can stow in it - apart from your breasts items like press passes, passports, mobile phones, currency, airline tickets, iPods, contact-lens cases, mini recorders, spare batteries, and so on.

heart of the city with troops. No one was being allowed in or out. I’ve found that one of the best ways of getting into an area where religion plays a part in the conflict is to find a mosque, synagogue or church which is in, or next door to, a trouble epicentre. You can then, as a dotty woman, insist that you need to go to this place of worship and of course you want to steer clear of any danger: ‘I’m a mother - what mother would risk leaving her children orphaned?’ There were 1,200 or so foreign journalists, TV crews and peace

Of course, unless you’ve remembered to remove all ironmongery from this bosomy storage area, it will excite metal detectors at airports (or, in one scary example at the Erez pedestrian crossing-point from Israel into lawless Gaza, set off klaxon-like alarms and summon posses of armed security police). Again in Israel I employed ‘dingbat mode’ when trying to get into Bethlehem during the Israeli siege of the city in 2002. Palestinian gunmen had taken refuge in the Church of the Nativity and the Israelis had ringed the

campaigners in Israel that week; those crowded round the barricades at Bethlehem, the majority clad in helmets and flak-jackets, were begging to be allowed to go in. ‘Too dangerous! Get back! Get back! No one allowed in!’ The odd poke in the chest with the barrel of an M16 was a convincing closing argument. I emptied my handbag of all evidence that I was a journalist, abandoned my flak jacket and tried my luck. In the event, I was the only one of the hordes of supplicants allowed to pass into Bethlehem. Perhaps I reminded these frightened

Gulf Insider April - May 2020

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People & Culture

young soldiers of their mothers, a bearer perhaps of some nice kosher chicken soup to see them through yet another terrifying day. I walked, utterly alone, through the deserted stone alleyways, picked my way round dozens of bomb-flattened and burnt-out cars and fly-fizzing mounds of decaying rubbish. ‘Where are you going? And why were you allowed in?’ a helmeted, heavily armed Israeli soldier barked angrily. ‘I’m a voluntary church worker - I’ve got permission to visit a sick priest who’s trapped near Manger Square!’ ‘But you are very stupid! You have no protection! Even we, with all this’ (he tapped his flak-jacketed chest and his M16) ‘can be killed at any moment! There are snipers everywhere! This is the most dangerous place in the world right now!’ I walked extremely slowly towards each Israeli patrol I encountered, a couple of times with my hands up. I dared not take out my mobile phone to ring my worried fixer on the outer rim of the city: a suspicious movement like that would have been a death sentence. It was not easy to persuade these jittery soldiers of my innocence. One of the ways I did so was by saying I was lost 22

Gulf Insider April - May 2020

I walked extremely slowly towards each Israeli patrol I encountered, a couple of times with my hands up. and adopting the ‘dotty old woman who can’t read a map’ routine. I held a map upside-down and peered at it, baffled. ‘I don’t know Bethlehem, do you know it?’ They rolled their eyes: typical woman! Then one of them muttered: ‘Actually, we don’t know where we are either.’ Eventually these young, frightened kids in uniform became enormously protective of me. Each time I left one patrol, its leader would shout out in Hebrew to the patrol round the corner: ‘Hold fire, she’s OK.’ When I was gasping from the heat, a soldier offered me a drink from his water bottle. At one particularly dangerous spot, a patrol detached a couple of soldiers to accompany me, their guns

pointed upwards towards the shuttered windows of the houses as we passed. ‘Snipers . . . snipers.’ And then there it was: Manger Square. I was now a few yards from the Church of the Nativity itself. The walls of the street were plastered with laudatory posters of suicide bombers, who’d posed in advance of their murderous deaths. Just before descending the steps into the square, in an attempt to allay suspicion, I asked the soldiers: ‘By the way, what do you think about Beckham’s broken foot?’ These startling shifts of conversation in the midst of a deeply cruel war occurred here constantly: young Palestinians, even while being shelled by the Israelis, also displayed an intense obsession with the drama of Beckham’s foot. As I often do, I feigned a knowledge of football which I do not possess ‘. But I got nearer to the Church of the Nativity than any journalist would do for at least ten days, and was able to report at first-hand on conditions in the besieged city. Abridged extract from Killing My Own Snakes by Ann Leslie, published by Macmillan. Available from Amazon.com


People & Culture

The COVID-19 crisis is a difficult time -

Are expats giving up?

B

ahrain is home to many, many expatriates. Around 650,000 in fact. There are a lot of different communities – Lebanese, Egyptians, Moroccans, Europeans, Americans, Indians, Filipinos, Bangladeshis, Pakistani, contributing to the well-oiled machine that is Bahrain. The largest expat community is of Indians – more than half of the estimated 650,000 hail from various parts of India. The local Indian community is a thriving segment of the island, with even many national events and fairs taking on Indian themes at times. Holi parties, Onam celebrations, Diwali and many other Indian festivals are celebrated with great pomp year on year. The problems that torment these expats who call Bahrain home are equally large as their presence on the island. So much so, that they end up taking their own lives. Data reveals that in 2018, 37 incidents of expat suicides were reported, while the number seems

Could it be that those who succumbed to suicide were going through similar feelings? We’ll never know for sure. to have significantly grown in 2019. Now, as the world battles with the coronavirus pandemic, four suicides have been reported in Bahrain in just the past two months. All four were middleaged, male Indian expats. While their reasons for taking this misstep cannot be singled out, the timeframe in which these have occurred point to the villain currently wrecking all of human life - the coronavirus. The virus has forced many to put their lives on

hold. Weddings have been postponed, business deals cancelled, salaries cut down, work trips called off, the list goes on and on. Since many Indian men are the single breadwinners of their families, the monthly paycheck matters a lot while businessmen may be on the verge where one deal could make or break their business. *Krishnan, an Indian expat who runs a small tailoring business in Manama said that he’s struggling to pay his loan installments now that demand has almost hit zero. He hopes that the government will consider some sort of relief for expats too for the next 2-3 months as they have nowhere else to turn to. Few others we spoke to said that they felt like failures for not being able to support their families at this time while few said that they could not grapple with the uncertainty of when things may return to normal. Could it be that those who succumbed to suicide were going through similar feelings? We’ll never know for sure. Will we have to report more such cases in the coming days? We hope not. Gulf Insider implores all reading – suicide is not the solution. While the extent of impact is different for different people, we are all in this together. The entire human race is fighting the disease and we will overcome its repercussions. If you feel alone or depressed, speak to a loved one today. Don’t forget, there’s a rainbow at the end of every storm.

Suicide helplines: 3841 5171, 3342 1660, 3625 3753, 3388 2835, 3802 4189 *name changed

Gulf Insider April - May 2020

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Money & Business

What does COVID-19

mean for wages in Bahrain? Mahmood Al-Araibi reviews the impact of force majeure and the pandemic on private sector wages in Bahrain.

T

he COVID-19 pandemic has resulted in the enactment of numerous laws and regulations in an attempt to mitigate the rampant effects which have been witnessed across all sectors. Recently, the Kingdom of Bahrain has introduced a new amendment to the Social Insurance Law which authorises the Kingdom’s pension fund to cover the wages and salaries of approximately 100,000 local Bahraini workers in the private sector for a period of 3 months. The wage support scheme excludes such coverage for expatriate workers. Furthermore, under the Labour Law of Bahrain

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Gulf Insider April - May 2020

employers may resort to Article 43 to implement a 50% wage deduction on employees if said employee is prevented from performing his work due to a force majeure event beyond the employer’s control. The permissible deduction under Article 43 in the present circumstances would be based on the inference that the COVID-19 pandemic is a force majeure event, beyond the control of the employer which prevents the employee from carrying out his/ her employment duties, and which has an effect on the employer’s business. However, the employer may argue that a deduction may


Money & Business

There have been no previous cases in the Labour Court that have considered Article 43, or force majeure issues in an employment context.

only be implemented if the employee was prevented from performing his/her work, and not simply because of the dwindling of the overall performance of the business. In the latter scenario, the employer will nevertheless be required to pay the employee his/her full wages, even if the employer is unable to fully utilise his employees. The defence of force majeure is widely recognised under Bahrain

to place a lockdown on shops and malls and other businesses; this may therefore constitute a valid ground for a deduction under Article 43. Having said that, it is arguable that in sectors where an employee is able to perform his/her work remotely (i.e. working from home), then Article 43 will not apply, and in such cases, the employee must therefore be paid his/ her wages in full. There have been no previous cases in the Labour Court that have considered Article 43, or force majeure issues in an employment context. We are of the view that Article 43 can be relied upon by the employer to reduce an employee’s wages if COVID-19 results in the employee being unable to undertake his/her duties, and said event has resulted in tangible damages to the employer’s business.

law, and the question of whether an employer is able to deduct from an employee’s salary by classifying COVID-19 as a force majeure event requires an assessment of the impact of the pandemic on the business. The Bahrain Civil Code considers force majeure in the context of contractual and tort disputes, and draws a distinction between two forms of force majeure events which make the contract:

Mahmood Salman Al-Araibi is the Head of Litigation at Al Tamimi & Company, located at the Bahrain Financial Harbour. Mahmood is licensed to attend all matters before the Bahraini Court of Appeal and is a Board Member of the Bahrain Bar Society. He is listed as a Certified Arbitrator before the GCC Commercial Arbitration Centre, a regional arbitration hub formed by GCC treaty, which has its regional office based in Bahrain. With over seven years’ experience in dispute resolution and litigation, he regularly represents clients in litigation and arbitration matters relating to construction contracts, maritime law, commercial agencies, insurance, intellectual property, trademarks and copyrights, employment, financial agreements and other corporate and civil disputes, in addition to advising on general corporate and commercial law matters.

 

impossible to perform; and difficult to perform

On the face of it, Article 43 seems to suggest that the wage deduction should be based on a force majeure event which causes an obstacle to the performance of the employment. For instance, the government has decided

Gulf Insider April - May 2020

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People & Culture

Bahrain BeAware App What all must you know? What is BeAware? 

The “BeAware Bahrain” app was launched by The Information & eGovernment Authority (iGA) in collaboration with the National Taskforce for Combating the Coronavirus (COVID-19). It aims to unify efforts toward mitigating the spread of coronavirus by active contact tracing, new case and recovery updates on, test scheduling facility, regulation of those in home quarantine and more.

How to get it? 

The app is available to download free of charge for all on IOS and Android from bahrain.bh/apps.

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People & Culture

for a duration of 14 days, as well as publish health recommendations and highlight global COVID-19 developments. 

e-bracelets iGA has so far provided 30,000 ebracelets, while the app has been downloaded more than 400,000 times, advancing contact tracing efforts and ensuring maintenance of precautionary measures by all. The application is a shining example of how the Kingdom of Bahrain is leveraging technology to safeguard the well-being of citizens and residents.

8000 8001 Government Service Contact Centre

How does it work? 

Once downloaded and registered in the app, self-isolating users are required to ensure their smart devices are charged and that their location services, Bluetooth, GPS and internet connection is on. iPhone users will need to ensure that the ‘Allow Location Access’ is set at ‘Always’. The app utilizes location data to – notify individuals in the event they approach an active case or a location an active case has visited, track movement of – self isolation cases

Self-isolating individuals using the application must identify their isolation location, in most cases their home, by selecting “Set Home Location”. Users can correct location information by calling 444. A waterproof, tamper-proof GPS tracking bracelet is assigned to those in self isolation, which shares real time-tracking information with health workers. Self-isolating individuals must wear the electronic bracelet that will notify the monitoring station when they are 15 meters away from their phone, in which case a warning will be sent. Attempting to remove or tamper with the bracelet is a legal violation. Ministry of Health officials may randomly send picture requests to which self-isolating individuals must respond with a photo that clearly shows their face and bracelet. Violators will face legal penalties, potentially being sentenced to imprisonment for a period not less than 3 months and a fine between BD1,000 and BD10,000, or either one of the two penalties. Self-isolating individuals are also required to schedule a COVID-19 exit test 3 days prior to the end of their self-isolation period. By calling 444 or visiting the Ministry of Health website or using the app features, users in self-isolation may schedule their compulsory exit swab tests 3 days prior to the end of their isolation period. The online reservation system also includes the drive-through testing facility located at Bahrain International Exhibition and Convention Centre. Tests are free and results may be checked on the app or on the Ministry of Health website portal.

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Money & Business

5 Trends Retailers Should Know for the Post COVID-19 GCC Market

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he coronavirus outbreak has created a crisis for retailers globally, with non-essential stores in most countries shut down anywhere between two weeks to two months. The crisis poses specific challenges to the six GCC states, which were relying on economic boosts in 2020 after witnessing a sharp decline in the region’s economic expansion last year. Stringent measures have been adopted by all GCC states. UAE is undertaking mass testing and has completed one million tests. Saudi Arabia, Bahrain and UAE announced they would penalise those who spread fake news related to coronavirus, while Kuwait has ordered the deportation of

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expats who violated the 12-hour curfew imposed in the city. The list also includes national sterilisation drives, strict social distancing rules, precautionary quarantine, and even movement permits aimed at mitigating the spread of the virus. The clear message to stay at home unless absolutely necessary has spurred large numbers toward society toward digital, contactless shopping experiences. And in the digital space, it is the more local and more responsive retailers who win.

1. Consumers will go cashless COVID-19 may provide just the

necessary push toward a cashless society and further digital connectivity. While digital payments have been growing with the advent of Benefit Pay in Bahrain, Mada in Saudi Arabia and Beam and Google Pay in UAE, the demand for contactless mobile payments is expected to further grow and consumers are more likely to choose retailers that provide such options.

2. Import dependency will encourage a shift to local production Coronavirus has increased the demand for non-perishables, as people opt for foods with longer shelf lives, such as rice and noodles, fearing that


Money & Business

global manufacturing will slow down. For fresh produce, the GCC relies heavily on imports, and in the first few weeks after the outbreak prices were shooting up for basic produce such as tomatoes and onions. This in turn, resulted in calls for price regulation and increased import, however, the need to look inwards for agricultural cultivation also came into focus. Saudi Arabia has even launched an “Agricultural Guide” App to support local production and farmers by providing instant agricultural

4. Brand message and communication Even before the COVID-19 crisis, millennial consumers, who are the key consumer group in the GCC, wanted to know what their brands stood for, and this is true now more than ever. Empathetic and locally inclined brand communication, with the goal of being consistent about measures being taken during the crisis is of utmost importance as this cultivated brand image will help once the crisis is over. Talabat is one such brand that has risen to the occasion –they currently provide contactless delivery wherein the delivery executive will leave the food package at a designated area outside the house and leave, while the payment is done online. This ensures zero contact with external elements while also seamlessly getting the food to customers.

5. Single-brand, luxury brands at most risk

COVID-19 may provide just the necessary push toward a cashless society and further digital connectivity.

consultation services via the app. A focus on self-sufficiency and preference for local produce is expected.

3. Demand for pharmaceuticals that can be stored for long periods COVID-19 has led to a spike in demand for paracetamol, zinc supplements and various vitamin tablets such as Vitamin C, as consumers look to boost their immune systems. To hold on to such first-time consumers, vitamins and dietary supplements manufacturers should promote the long-term benefits of taking them to safeguard against illness in the future.

Across the GCC, just as is the case globally, luxury brands will suffer, as such consumers tend to like, see and review before making sizeable investments and are hence less likely to buy online. On the other hand, bricks-andclicks stores like Sephora, which have invested heavily in their online presence, will benefit from the reduced footfall in shopping malls. Other brands that have a strong e-commerce presence can also make up sales online. For bricks-and-mortar establishments it may take a lot more time to bounce back. However, once the risk subsides, customers can be drawn in through a major sale, like the Great Singapore Sale which was used to entice huge spending sprees after the SARS virus left Singapore’s retail sector in tatters. Retailers need to be agile, aware and responsive, in order to survive the crisis. Any hope of recuperating in the future will is futile unless the current focus is on providing agile, localized responses to consumer needs, whether it be by increasing supplies or relying more on e-commerce.

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Money & Business

An Elite summer escape

M

ake it a real summer escape with Elite Hospitality Group. Families can explore the special offer at the Elite Seef Residence Hotel located at the Seef in the center of the Kingdom’s main shopping area - spacious suites with the fun of city life. Elite’s one and two bed room family suites are elegantly furnished in modern leather interiors, with a fully equipped modular kitchen, lavish bathrooms, home theatre system with in-house TV channels, Digital Satellite television system and 24 hour personalized room service with special menus offering lavish choices with great value. The one bed room suite is priced at BD 33 net per night, inclusive of WiFi and breakfast for two. Elite Grande Hotel will help find the time for a real treat with the family.

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Elite is now also catering to your doorstep. Specializing in institutional catering in offices and factories. Nestled in the heart of Seef, close to the largest shopping complex on the island - Bahrain City Centre, their two bed room family suite is a perfect place to unwind in a relaxing atmosphere with personalized service. Each spacious suite is lavishly furnished with grand bathrooms,

complete home theatre systems in each bedroom with DVD, and HDTV Satellite channels, hi-speed Internet access, Direct Dialing facility with voice mail and digital safe-deposit lockers. The two bed room suite is priced at BD 60 net per night. Their offers are open from Eid ul Fitr to all visitors and are valid until the end of September. Elite is now also catering to your doorstep. Specializing in institutional catering in offices and factories, Elite Hospitality Catering supplies to large corporates, banks, factories and ministries. They also cater for all events such as receptions, cocktail parties, BBQ’s, birthdays and anniversaries.

For bookings and more details please call: +973 17 558 200 or visit their website www.elitegrouphotels.com


News Roundup

Coronavirus: US Authorises Use of Remdesivir Drug for Treatment The US’s Food and Drug Administration (FDA) has authorised emergency use of the Ebola drug remdesivir for treating the coronavirus. The authorisation means the antiviral drug can now be used on people who are hospitalised with severe Covid-19. A recent clinical trial showed the drug helped shorten the recovery time for people who were seriously ill. However, it did not significantly improve survival rates. Experts have warned the drug – which was originally developed to treat Ebola, and is produced by Gilead pharmaceutical company in California – should not be seen as a “magic bullet” for coronavirus. The drug interferes with the virus’s genome, disrupting its ability to replicate. In its clinical trial, whose full results are yet to be released, the US National Institute of Allergy and Infectious Diseases (NIAID) found that remdesivir cut the duration of symptoms from 15 days down to 11. However, although remdesivir may aid recovery – and possibly stop people having to be treated in intensive care – the trials did not give any clear indication whether it can prevent deaths from coronavirus. As much remains uncertain about the treatment regime, Gilead suggests a 10-day dosing duration for patients on ventilators and five days for patients who are not.

Bahrain Receives Hydroxychloroquine from India Bahrain received a shipment of Hydroxychloroquine, following the export approval issued by the government of India. The drug has been used as part of Bahrain’s treatment protocol for active COVID-19 patients. The Ministry of Foreign Affairs reiterated the importance for all countries to unite and join efforts to combat the novel coronavirus (COVID-19) pandemic.

Bahrain: MOH Refers Citizens to Self-Isolate at Home The Ministry of Health has announced the referral of citizens from quarantine centres to selfisolation at home in accordance with resolution no. 25 for the year of 2020, issued by the Minister of Health. The resolution sets out home self-isolation health regulations that suspected and active coronavirus (COVID-19) patients are obliged to follow. The ministry stressed that all those who are ordered to self-isolate are required to sign a selfisolation declaration form and adhere to home self-isolation guidelines for a minimum of two weeks. These measures include downloading the “BeAware” app and wearing an electronic bracelet to enable expedited public health management. The ministry reiterated that these public health procedures have been established to ensure the safety of patients and the community. The ministry noted that citizens who have been relocated to home self-isolation include returnees to Bahrain from abroad. It added that contacts of active cases are already being referred to home self-isolation for two weeks. Patients who have recovered from COVID-19 are obliged to self-isolate at home for a period of 4 weeks, and are tested regularly to ensure they have completely recovered from the virus. Individuals may book a COVID-19 test via the “BeAware” app after the home self-isolation period has ended, and can proceed to the Bahrain International Exhibition and Convention Center on the appointment date provided. Gulf Insider April - May 2020

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News Roundup

Bahrain: E-Mall Platform ‘mall.bh’ Officially Launched The Ministry of Industry, Commerce and Tourism (MOICT) launched the eMall platform aimed at supporting licensed commercial enterprises to practise e-commerce activities within Bahrain, in light of the challenges presented by the global spread of coronavirus (COVID-19). The eMall will bring together enterprises that are licensed as e-businesses, with an existing eCommerce website or mobile application. The website provides online payment methods as well as delivery services. Interested enterprises and SMEs may register via www.mall.bh For further information, email info@ mall.bh or call 17359008.

Bahrain Grand Prix to take place in December 2020

Bahrain: All Visit Visas Extended for 3 Months The Nationality, Passports and Residence Affairs (NPRA) has announced the extension of the validity of all valid and expired visit visas for three months. Also, no fees would be taken to correct all types of resident permits until the end of the year. The move aims to reduce the implications of the coronavirus pandemic in the world to enable residents and visitors to correct their situations. The NPRA highlighted that the validity of all visit visas would automatically be renewed for three months, starting from the date of the issuance of the decision. 32

Gulf Insider April - May 2020

The Bahrain Grand Prix, traditionally the second event of the F1 season, was scheduled to take place on March 22, but was rescheduled to December in light of Covid-19 containment measures and increased concerns over health and safety as the virus spread across the world. The rearranged Formula 1 racing calendar for 2020 will climax in the Gulf region with events in Bahrain and Abu Dhabi, according to CEO Chase Carey. On Monday it was announced that the French Grand Prix would become the tenth leg of the 2020 championship to either be scrapped (Australia, Monaco and France) or postponed (Bahrain, China, Vietnam, Netherlands, Spain, Azerbaijan and Canada). Carey said in a statement that plans were to get racing underway in Austria on July 3-5 and carry on through to the season finale in Bahrain and the UAE in December. “September, October and November, would see us race in Eurasia, Asia and the Americas, finishing the season in the Gulf in December with Bahrain before the traditional finale in Abu Dhabi, having completed between 15-18 races,” he said. Early races will take place without fans and UK circuit Silverstone confirmed on its Twitter account that the British Grand Prix, scheduled to take place on July 19, would only go ahead behind closed doors. Carey hoped that spectators would be allowed back “as we move further into the schedule”.


News Roundup

Indian Navy ready to evacuate stranded citizens from the Gulf Indian Navy Chief Admiral Karambar Singh said they were ready to evacuate stranded nationals from Gulf countries amid the coronavirus outbreak that shuttered international travel, South Asian news agency ANI has reported. Singh said the country has a “large diaspora in the Gulf,” and that the Indian armed forces were informed of a plan to repatriate them as soon as the government gives its go signal. “We have readied our ships and will go for the evacuation as soon as we get the go-ahead,” he said in a press conference with India’s chief of defense. Evacuations could involve “more (than one) trips,” the admiral added, and could be a “continuous process depending on the numbers.”

Saudi Arabia to eliminate flogging punishment Saudi Arabia’s Supreme Court is set to implement a directive from higher authorities calling for the elimination of flogging as a form of punishment in judicial verdicts, Okaz Arabic daily has reported. Reports state that the General Commission for the Supreme Court has issued a decision, with a majority vote, stipulating that it should suffice courts to restrict discretionary (Ta’ziri) punishments to a jail term or fine, or both, or alternative penalties. The sources added that it is incumbent upon the courts to implement this principle and not to digress from it whatsoever. Last year, the Saudi Shoura Council member Faisal Al-Fadhil, had called for abrogation of the flogging penalty and restricting it only to Hudood cases, which entail capital punishment, in the Shariah law. The elimination of flogging as a punishment is the latest in a series of steps taken by the Kingdom to modernize its judicial system.

Saudi: E-Platform Launched for Expats Wishing to Fly Home Expatriates who have been issued with an exit/reentry visa or final exit visa and wish to fly to their home countries can now submit an online application through the Absher platform, the Saudi Ministry of Interior announced. The requests will be reviewed and, when approved, applicants will receive a text message containing the details of their flight date, ticket number and other reservation information. Flights will depart from Riyadh, Jeddah, Madinah and Dammam. People who live outside the departure cities will be given enough time to reach them after requests are approved.

Gulf Insider April - May 2020

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Money & Business

GCC countries announce measures to mitigate tax-ing issues

T

he coronavirus pandemic has put most of the world’s economies stunted, with the International Monetary Fund reporting that the world is now facing the biggest economic crisis since World War II. On top of that, the World Bank is forecasting damage of $116 billion in the MENA region alone, which is about 3.7 percent of last year’s gross domestic product. The region is spiraling with the effect caused by the double whammy of falling oil prices and the coronavirus. So far, the GCC has responded by

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GCC has responded by announcing more than $120 billion in collective stimulus packages and emergency tax measures.

announcing more than $120 billion in collective stimulus packages and emergency tax measures. For employers and employees alike, the end of the tax year in the GCC has also come at a bad time as businesses close and uncertainty lies ahead due to the impact of the coronavirus. Almost all GCC countries have announced various waivers on fees and levies, intended to minimize the impact on its residents. Here is a list of the same. Bahrain has announced waivers of tourism fees, industrial land fees


Money & Business

and municipality fees for a period of 3 months, also doubling the liquidity support fund to $530 million. Extra credit is being extended while existing loan installment payments have been deferred by 6 months. The government is shouldering the public’s utility bills for 3 months while municipality rental buildings have waived off rent. Nationals in the private

Bahrain has announced waivers of tourism fees, industrial land fees and municipality fees for a period of 3 months, also doubling the liquidity support fund to $530 million.

sector will be paid salaries out of the unemployment fund for 3 months. Additionally, Tamkeen has announced a Business Continuity Support Program for active Commercial Registrations (CR) having a workforce of less than 50. In Saudi Arabia, the General Authority for Zakat and Tax (GAZT) introduced a general extension of 3 months for filing tax returns and payment related tax for registered taxpayers. The extension applies for Zakat, income tax, withholding tax, value added tax (VAT), and excise tax due for the period from 18 March to 30 June 2020. This means that taxpayers will not have to declare their income for the year until 30 June.

In the United Arab Emirates, both Dubai and Abu Dhabi have introduced measures to help ease the pressure on taxpayers. In Dubai, the government introduced a 20 percent refund on customs duties paid on imported goods and canceled the bank guarantee required to clear goods. Customs clearance fees have also been reduced by 90 percent for three months. Abu Dhabi has reduced industrial land leasing fees by 25 per cent on new contracts and suspended tourism and municipality fees for the tourism and entertainment sectors until the end of this year. Additionally, commercial vehicles have been exempted from annual registration fees while all other vehicles have been exempted from road toll tariffs until the end of 2020. Omani taxpayers have been allowed to pay taxes in installments, and these payments are exempted from additional penalties if affected due to coronavirus. Donations given for the fight against coronavirus are also eligible for deductions from taxable income for the year 2020. Oman has also announced that restaurants would be exempt from tourist and municipal tax until 31 August 2020, and commercial establishments would be exempt from municipal tax until the same date. In Qatar, the corporate income tax filing deadline has been extended for financial years ended 31 Dec 2019 from 30 April 2020 to 30 June 2020. While Kuwait has not announced any specific tax measures yet, help has been promised to commercial banks in the form of cash influxes. Kuwait has suspended fees on point of sales devices and ATM withdrawals. These measures are in line with the IMF’s suggestions, which also put forth that the Middle East should consider cash payouts to the afflicted, similar to America. They also stressed that attempts to stimulate economies will not work at this time and that economic policy response should be directed at preventing the pandemic-a temporary health crisis-from developing into a drawn-out economic recession.

Gulf Insider April - May 2020

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Money & Business

The Pandemic, Stimulus Package and Industrial Sector A look into the key features of Bahrain’s economic stimulus package and how the industrial sector is expected to be affected.

I

ndustries and manufacturers all over the world are grappling with new questions the current situation seems to be throwing at them every other day. Bring into the mix the IMF’s declaration that the global economy is in a recession, and the industrial sector – unless you are a medical equipment producer, is quite sadly and understandably facing a slowdown. In Bahrain, a major chunk of the industrial sector is constituted by Oil and Gas. Aluminum Smelting and Tourism are others. According to S&P Global Ratings, oil markets are now heading into a period of a severe supply-demand imbalance. In line with this, they anticipate a recovery in both GDP and oil demand

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through the second-half of 2020 and into 2021 as the most severe effects from the COVID-19 pandemic moderate. Recognizing the strain this places on a large majority of industries in Bahrain, the government has announced an economic stimulus package of US$11.4 billion to try and minimize the impact on the business community. Key features of the package include: 1. Paying the salaries of all Bahraini private sector employees for three months from April 2020 from the unemployment fund, following constitutional procedures and in line with the Social Insurance Law. 2. Paying individuals’ and businesses’

Electricity and Water Authority utility bills for three months from April 2020 (up to the costs incurred during the same period in 2019), whilst also restructuring government administrative costs to offset additional costs incurred by the government. 3. Exempting all individuals and businesses from municipal fees for three months from April 2020. 4. Exempting all businesses from industrial land rental fees for three months from April 2020. 5. Exempting all tourism-related industry from tourism levies for three months from April 2020.


Money & Business

6. Doubling the Liquidity Support Fund to US$530m. 7. Increasing the Central Bank of Bahrain’s loan facilities to US$9.8bn to allow debt instalments to be deferred and extra credit to be extended. 8. The redirection of all Tamkeen programs (semi-autonomous government agency that provides loans and assistance to businesses) to support adversely affected companies,

According to S&P Global Ratings, oil markets are now heading into a period of a severe supplydemand imbalance.

as well as the restructuring of all debts issued by Tamkeen. To write about Bahrain’s industrial sector without considering the two giant players on the island would be rather impossible, so we looked at Alba’s and Bapco’s coronavirus precautions and reactions:

Aluminum Bahrain B.S.C. (Alba) in Askar

is the world’s largest aluminum smelter ex-China. With one of the biggest workforces

in Bahrain (more than 3000), Alba introduced numerous safety initiatives across the plant and various departments as early as January 2020. COVID-19 awareness sessions for employees and contractors were and are being conducted by Alba Health Care team via video-messaging and online platforms. The company has activated remote working for all employees, in particular women and senior staff. 500 volunteers from Alba are part of TEAM Bahrain, to help fight the spread of COVID-19. Alba has announced its commitment to achieve its production target of more than 1.54 million metric tonne by 2020, while ensuring the safety of its employees and contractors.

Alba has announced three infections among its contractors’ employees, and placed all who came in contact with them under quarantine.

The Bahrain Petroleum Company B.S.C (BAPCO) is one of the oldest oil and gas

companies in the gulf.

Wholly owned by the Government of Bahrain, Bapco is engaged in the oil industry including refining, distribution of petroleum products and natural gas, sales and exports of crude oil and refined products. The company has more than 2500 staff, and owns a 264,000 barrel-a-day refinery, and storage facilities for more than 14 million barrels. Bapco’s health promotion unit held various awareness campaigns for employees, including the enforcement of social distancing protocols and regular sanitization of the massive facility. Informative posters have been put up throughout Bapco, also highlighting the correct technique of hand washing. Also part of the facility, Bapco Club is only offering takeaway services while Awali Hospital held a #ICannotStayAtHome, I’mANurse campaign to raise awareness about the importance of staying in to help limit the strain on medical workers. Since these industries usually see a lot of visitors, it is important that regular sanitization measures are followed. The high concentration of employees in these companies and the significance of their contribution to the national economy are also important factors to be considered. In conclusion, we can hope that the stimulus package declared by the government helps to cushion the adverse effect this pandemic is having on the economy, both globally and in Bahrain. S&P Global Ratings adds further weight to this by revising its outlook on Bahrain to stable from positive which reflects its expectations that Bahrain’s neighbors will provide timely support, as needed, through the expected low oil price environment, allowing the government to continue implementing budget-deficit-reducing measures while also effectively combating COVID-19. Gulf Insider April - May 2020

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Money & Business

Bahrain’s financial sector adapts to the pandemic

O

nline services – cashless, interaction-free, virtual, all of these have become buzzwords , just like sanitation, handwashing and hygiene. Many have resorted to using only electronic money to avoid handling cash after the World Health Organisation (WHO)’s warning that coronavirus could be transferred from handling cash – as it passes so many

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There’s no better time than this to pack away your currency notes and take your banking online.

hands. For those who still use currency notes on a regular basis, the instructions are simple – wash your hands with soap after handling currency. In light of these circumstances, the Central Bank of Bahrain (CBB) has instructed money changers to disinfect all incoming currency notes and wholesale imported notes with Ultraviolet Germicidal Irradiation (UVGI) or isolate them for 72 hours.


Money & Business

According to the report, financial services is the Kingdom’s largest non-oil sector, contributing 16.5 percent to the GDP.

According to the recently published Bahrain Annual Economic Report 2019, financial services is the Kingdom’s largest non-oil sector, contributing 16.5 percent to the Gross Domestic Product (GDP), followed by manufacturing at 14.5 percent and government services at 11.8 percent. As such a crucial segment of the economy, we looked at the measures banks in Bahrain have been taking to prevent the spread of coronavirus. The National Bank of Bahrain (NBB) while increasingly shifting towards a ‘work from home’ environment, implemented a sanitization regime across NBB’s entire network, in addition to providing all customer-facing

Draw” while Al Salam Bank recently announced the winner of their Danat Al Salam Grand Winner remotely, contacting the winner through video conferencing. Al Salam has also announced a #StrongerTogether initiative to support customers, their families, and families of quarantined individuals. The Bank of Bahrain and Kuwait (BBK) reminded customers to take their banking online, through the bank’s mobile banking app, while Ahli United Bank (AUB) is encouraging the use of mobile banking by offering customers a chance to win BD 10,000. Arab Bank’s array of services is also available online, as is Standard Chartered Bank’s.

employees with the necessary personal protective equipment, such as gloves, masks and sanitizers. Bahrain Islamic Bank (BISB) has adopted measures like cancelling all business trips, taking the bank’s Annual General Meeting virtual, apart from instructing over 60% of its employees to work from home. Ithmaar Bank is allowing only a limited number of customers in its branches, and is strongly propagating the use of online banking for transactions. Many banks have also come up with creative ideas to keep customers engaged. For example, Al Baraka Bank didan Instagram live of their “alBarakat

Finally, while all its services are available online for customers, Bank Ila, Bahrain’s first fully digital online bank also implemented a remote working policy for its employees. While branches remain open, all the banks in Bahrain have strengthened their online banking platforms, and are urging customers to choose digital banking over traditional banking channels. There’s no better time than this to pack away your currency notes and take your banking online. While doing so, make sure to keep an eye out for scams and phishing activities, and never share your sensitive information with unverified sources.

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News Roundup

Saudi: ‘Strict, Painful’ Measures to Fight Economic Downturn Saudi Arabia will take strict and painful measures to deal with the economic impact of the coronavirus pandemic, finance minister Mohammed Al Jadaan said in an interview with Al Arabiya TV, adding that “all options for dealing with the crisis are open”. “We must reduce budget expenditures sharply”, Jadaan said. No details of possible measures were given. The world’s largest oil exporter is suffering from historically low oil prices, while measures to fight the new coronavirus are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

Saudi: Flights, Public Transport Suspended Until Further Notice Saudi Arabia will continue the suspension of international and domestic flights until further notice, with the exception of emergency cases, due to the novel coronavirus pandemic. Train, bus and taxi services also remain suspended and people employed in the state sector will continue working from home, the spokesman told a news conference broadcast on state television.

Electric Car Company Lucid Motors Enters UAE, Saudi Markets Saudi-backed Lucid Motors, a rival to Tesla in the electric vehicles market, has announced that it is accepting reservations for its Lucid Air sports sedan in the UAE and Saudi Arabia. In 2018, Lucid landed a $1 billion investment by Saudi Arabia’s Public Investment Fund, allowing it to get the Air Sedan – its first model – into production. A production version of the Lucid Air is expected this year. The first deliveries of the vehicle are expected in late 2021. In a statement, Lucid said that reservation fees are set at roughly $1,000 in both the UAE and Saudi Arabia.The Lucid Air sedan is designed to operate at over 400 miles per charge, alongside up to 1,000 horsepower. Lucid has already manufactured more than half of the expected 80 beta prototypes at its headquarters in Silicon Valley.

Saudia Airlines Deny June Flight Resumption Rumours Saudi Arabian Airlines has denied that flights will resume in early June, despite the website showing domestic flights available for booking. The airline said that it was awaiting official clearance from the authorities to restart air travel. There has been no government decision to resume domestic flights in the Kingdom. In a bid to slow down the spread of coronavirus, Saudi Arabia suspended international flights from March 15 and domestic flights from March 21.

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News Roundup

UAE: Stem Cell Treatment Doesn’t Cure COVID-19 But Fights Symptoms An Abu Dhabi doctor said the new stem cell treatment against COVID-19 “doesn’t provide an entire cure,” but helps patients overcome its symptoms. “It’s a national achievement. This treatment is supportive and doesn’t provide an entire cure. It helps patients overcome the symptoms caused by the virus but doesn’t kill it,” Dr. Fatima AlKaabi, Head Hematology and Oncology at Sheikh Khalifa Medical City, said. Al-Kaabi, who was part of the 28-man team that came up with the treatment, added clinical trials are ongoing. The treatment works by extracting stem cells from a patient’s blood and reintroducing it in an “activated” state to the lungs through a fine mist.

UAE: More Than 150,000 Indians Register to Fly Home More than 150,000 Indians in the UAE have registered to fly home during the coronavirus pandemic, as per the latest figures with the e-registration launched by the Indian missions here. “As of 6 pm on Saturday, we received more than 150,000 registrations,” Consul General of India in Dubai, Vipul told Gulf News on Saturday.A quarter of them want to return to their homeland after losing their jobs, he said. “About 40 percent of the applicants are workers and 20 per cent are professionals. Overall, 25 percent have cited job-loss as the reason for leaving the country.” About 10 percent of the applicants are visit/tourist visa holders who were stranded after the flight suspension and lockdown in India. The rest of the applicants include those with medical emergencies, pregnant women and students, Vipul said. While there are Indians registering to return to various states, the Consul-General said 50 per cent of the applicants are from the state of Kerala. Reports added that the first phase of evacuation is likely to begin with the UAE with distressed workers, especially those from the state of Kerala getting the first priority.

Robots deployed in Abu Dhabi Airport to Fight COVID-19 Abu Dhabi Airports is to use robotic technology to ensure staff and passengers are free from the threat of Covid-19. The company has partnered with Tawazun Strategic Development Fund (TSDF) to launch the new CoDi BOT UGV (unmanned ground vehicle), designed and manufactured by UAE-based company Marakeb Technologies, an affiliate company of TSDF, for the disinfection of viruses including Covid-19. The CoDi BOT UGV is being piloted this month throughout Abu Dhabi International Airport, including in staff areas and cargo facilities, as well as being used as part of cabin sterilisation processes on passenger aircraft. Specifically ensuring aircraft cabins are kept clean and sterile, the CoDi BOT UGV is designed to be able to manoeuvre through airplane cabins, while ensuring the safety of its operators through remote control capability, using realtime video and high-speed 4G data connection. 42

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The UGVs will be operated in conjunction with the extensive range of preventative measures implemented at Abu Dhabi International Airport in response to Covid-19, including thermal screening, nasal swabbing, and polymerase chain reaction (PCR) testing, in line with the recommendations by the Ministry of Health and Prevention (MoHAP).


News Roundup

41% of Oman’s Total Population is Expatriates Expatriates make up over 41 percent of the population in Oman, according to the country’s National Centre for Statistics and Information (NCSI). The latest figures show the number of expats in the Sultanate reached 1,936,830 (41.7percent) at the end of the first quarter in 2020, compared to 42.5 percent at the end of 2019, with 2,030,000 expatriates. NCSI revealed that the population of Oman at the end of March stood at 4,645,249, including 2,708,419 Omanis, representing 58.3 percent of the total population. NCSI’s monthly bulletin of April 2020 showed that 85.8 percent of the total number of expatriates in the Sultanate work in the governmental, private and domestic sectors. Their number at the end of the first quarter of 2020 amounted to 1,662,113 expatriates, including 53,332 people in the government sector – down by 7.6 percent; 1,321,753 people in the private sector (down 7.1 percent), and 287,028 people in the domestic sector (a 3.3 percent decline).

Qatar: Strong winds, rain destroy coronavirus field hospital Strong winds and heavy rainfall destroyed a field hospital in Qatar treating patients with coronavirus, a video circulating on social media shows. Footage from the video shows heavy winds buffeting the hospital, at the Umm Salal area in the north of Doha, as well as an aftermath of the storm showing hospital equipment strewn, apparently destroyed by strong winds. A portion of the video also showed a collapsed hospital roof resting on top of a vehicle. No casualties have been reported but social media users have circulated photos and videos of the incident, some showing people fleeing from the place.

Coronavirus: Tiger in New York Zoo Tests Positive A tiger at the Bronx Zoo in New York City has tested positive for COVID-19 after apparent exposure to an infected worker. The four-year-old female Malayan tiger named Nadia was tested out of an abundance of caution after developing a dry cough and a decrease in appetite. Six other cats at the zoo, including Nadia’s sister Azul, two Amur tigers and three African lions, were also suffering possible coronavirus symptoms. The cats were infected by a person caring for them who had COVID-19 but was asymptomatic or had not yet developed symptoms. All of the cats are expected to recover.

Gulf Insider April - May 2020

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People & Culture

Hotels and Hospitals Join Hands to Fight COVID-19

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ahrain has an abundance of experienced and licensed healthcare professionals, who have contributed to helping keep Bahrain the healthiest Arab country, and in these troubled times are our frontline heroes. At least until the COVID-19 pandemic, which seems to have temporarily put most things on hold, the Bahrain healthcare industry had been growing fast, with several new medical projects planned to take off in the coming years. As of 2017, the Kingdom’s healthcare facilities include, amongst others, 21 hospitals, 95 public centres, 41 specialised centres and 132 clinics. As one of the first few countries to test and effectively use Hydroxychloroquine – the Malaria drug used on an experimental basis to treat COVID-19, Bahrain has emerged as a leader, setting an example for efficient crisis management. The drug has proved to be very effective in alleviating coronavirus-related symptoms like 44

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The inclusion of private hospitals in the coronavirus care space is an interesting development. pneumonia, pain and fever and has contributed in bringing Bahrain’s recovery rate to the highest in the GCC. Until a couple of months back, all coronavirus patients were handled directly by the Ministry of Health, which currently has an isolation and treatment capacity of 2,473 beds and a quarantine capacity of 1,673 beds. The National Health Regulatory Authority (NHRA) announced that while the public, free treatment and quarantine centres will remain open,

treatment options have also been extended to COVID-19 patients and those in quarantine who wish to receive care in a private hospital setting. Few hospital-hotel combinations have been granted licenses in this regard. Individuals arriving from COVID-19 affected countries, or those who have interacted with active cases, and wish to be quarantined in a private facility will be able to do so at the Novotel Hotel, Muharraq, where they will be monitored by a specialised medical team from the Bahrain Specialist Hospital (BSH). The American Mission Hospital (AMH) has tied up with the Elite Resort and Spa on Shaikh Hamad Causeway, while the Royal Bahrain Hospital (RBH) is working with The Grove Hotel in Amwaj Islands in this regard. The Best Western Hotel and Taj Plaza Hotel have been also temporarily converted into quarantine centres by a specialised team from Middle East Hospital. Middle East Hospital is furthermore


People & Culture

Park Regis. From there, we take over. The NHRA also allocates to the hotel individuals who require isolation, and they are assigned to a different “ward”.

What facilities are available to someone who isolates in Park Regis? All three meals – breakfast, lunch and dinner are provided. Dedicated doctors and nurses will attend to patients and 24-hour nursing stations have been set up on every floor.

Can anyone avail this treatment facility? Anyone who approaches us through the ministry can avail treatment and quarantine facilities, free of charge.

What is the sanitation process maintained at Park Regis?

providing medical services for COVID-19 patients at the Park Regis Hotel in Juffair. The hotel has also been set up as an isolation center from midFebruary, free of charge for all. We spoke to the teams at Middle East Hospital and Park Regis Hotel to know more.

How does this work, what is the process to check in? Active cases of COVID-19 who wish to be admitted should call 444. That is the direct Ministry of Health line, and once the ministry does the necessary checks, patients will be transported to

All Ministry of Health protocols are being followed including regular sanitation of the premises, all counters and elevators are being wiped down and disinfected. Employees are required to sanitize before and after each guest interaction. All our sanitization efforts are being regulated and monitored by the Ministry of Health. For as long as the situation exists, we will not be entertaining other guests or providing normal services to the public.

What food will be provided, is it a special diet? There is no specific diet for the

patients, our hotel chefs prepare a daily menu which ensures diverse food choices as we choose to treat the patients and others in quarantine like our guests.

What will happen to things utilized by patients? Everything utilized by the COVID-19 patients and those in quarantine are single-use items. After use, we will destroy these in line with Ministry directives.

How will medical services be provided? The specialized medical team from Middle East Hospital is staying at Park Regis Hotel to provide treatment oncall, and a makeshift hospital has been established in the premises. Patients and those in quarantine are observed at

regular intervals and all the equipment is available on-site. The inclusion of private hospitals in the coronavirus care space is an interesting development. While it is a welcome move for patients seeking to receive private care, it is also heartening to see how star-rated hotels such as Park Regis are coming forward to support the community at this time. Furthermore, it provides a glimpse into the government’s contingency plan for the foreseeable future, for even when movement will slowly resume, isolation could still be required to some extent. Gulf Insider April - May 2020

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People & Culture

A fresh take on

modern living

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he changing landscape of Bahrain’s elegant Juffair district constantly keeps getting new additions. The latest is Lotus Apartments, a luxurious, fully furnished 180-room apartment which boasts of diverse offerings in the very heart of Juffair. The Lotus apartments have a varied range of products, all specifically designed to suit business and leisure travellers. It offers 180 luxuriously furnished, one and two BHK apartments. All the flats are centrally air-conditioned, with luxurious bedding, spacious living rooms with cable TV, kitchens, direct telephone lines, hi- speed wireless internet connectivity, and electronic safes. It features a roof-top swimming pool, a modern gym equipped with cardio machines. It is also equipped with a recreation hall and conference hall to cater to the need of small and medium business meetings and gatherings.

For enquiries, call 36293777 46

Gulf Insider April - May 2020


News Roundup

Kuwait: Around 350 weddings within 42 days amid virus outbreak In spite of the coronavirus scourge hitting the country, this did not prevent people from tying the knot. According to the statistics issued by the Ministry of Justice, it has registered 350 marriage contracts within 42 days. The statistics stated 262 marriage contracts were ratified from March 15 to April 22 last, in addition to issuing 88 marriage permits by the ‘authorized persons’ outside the Department of Legal Documentation. However, the statistics does not include the number of divorces, not because they did not exist during this crisis, but because the ministry informed those who wish to separate that most of the staff working in this department are on leave and must wait until the epidemic ends.

Kuwait: Thousands Register as Amnesty Period for Residence Violators Ends The Ministry of Interior will not extend the amnesty period for residence law violators, which ended on April 30, 2020. According to sources, around 25,000 residence violators have registered to return to their homelands, free of prosecution or fines for overstaying in Kuwait illegally. Such violators are housed in government shelters as of now, undergoing medical tests to be able to return home. The deportation of such undocumented Indians and Egyptians will begin next week, according to Arab Times. However, around 1,35,000 illegal expats are said to still be in hiding, refusing to take advantage of the opportunity to return to their countries. Visa traders who illegally sell visas for marginal labour have been largely blamed for the expat crisis. The time limit may be extended for expats from countries which haven’t opened their airspace for citizens wishing to return.

WHO: “The pandemic is far from over!” Tedros Adhanom Ghebreyesus, World Health Organization Director-General said, the coronavirus pandemic isn’t over. “The pandemic is far from over,” he said at a news conference. He said the World Health Organization “continues to be concerned about the increasing trends in Africa, Eastern Europe, Latin America and some Asian countries.” “As in all regions, cases and deaths are underreported in many countries in these regions, because of low testing capacity,” Tedros said. “This virus will not be defeated if we are not united, if we are not united, the virus will exploit the cracks between us and continue to create havoc. Lives will be lost,” Tedros added.

Gulf Insider April - May 2020

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Money & Business

Remote working in the Gulf – Bahrain leads the way

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he idea of remote work isn’t relatively new. Its roots can be traced back to as early as 1970, when Ford, the same people that gave us the assembly line, decide to allow employees to work from home to cut down on commute time. However, its magnitude has been negligible to say the least. Up until 2010, corporations have argued that a

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Based on the survey results, up to 35% of businesses said they’d soon be asking employees to work from home.

they do not possess the infrastructure to support a Work from Home policy. The advent of better monitoring tools and improved connectivity put an end to that argument, not to mention its proven benefits surrounding employee wellbeing and mental health. Compared to the rest of the world, the Gulf has been largely evasive of the topic, up until the spread of the coronavirus forced governments and


Money & Business

businesses to rapidly adopt remote working policies. A survey by GulfTalent published on March 4th showed that one-third of the GCC’s private companies were willing to implement remote work. The survey received responses from 1,600 companies across the GCC. Based on the survey results, up to 35% of businesses said they’d soon be asking employees to work from home. This consisted of 6% who have just launched work-from-home plans as a result of the coronavirus outbreak,

This was followed by Qatar, UAE and Kuwait at 37% each. In Saudi Arabia 30% of firms indicated plans for working from home, while businesses in Oman registered the region’s lowest rate of possible remote work at just 18%. Despite what these numbers signify, it is important to note how much has changed in a matter of around 45 days. Almost all GCC State have now most have implemented remote work in their public sector offices and have urged private companies to implement the same, wherever possible. Ameena works in a private firm in Bahrain. She said her company was one of the first few to adopt remote working, as early as the first week of March. “It’s been over a month of working from home now, and I still have mixed feelings. I’m mostly happy and thankful to be working from the comfort of my couch, but I also feel there’s no separation of work and home. I find myself working on weekends and designated holidays and am not able to just turn it off, unlike in office where I packed up sharp at 6.” she said.

What is keeping companies from adopting remote work?

Ultimately, remote work is a necessary component of agile businesses which seek to hit the ground running once the economy picks up pace.

5% who confirmed plans being rolled out soon, 12% who were reviewing the concept, combined with a further 12% who already had remote work arrangements prior to the outbreak. Meanwhile, 54% of survey respondents said they had no remote work plans up until a month back from today, while 11% said their firms would definitely not entertain the possibility of staff working from home. Across the region, firms in Bahrain reported the highest rate of remote work plans at 38%. Most companies, whether SME’s, corporates like ALBA or banks such as BBK and BISB, have initiated remote work policies for employees.

Few prominent industrial sectors in the Gulf - such as construction and oil and gas etc, cannot practically adopt distance work strategies. Apart from this, the major challenge is trust. In a physical office environment, trust is hardwired into the space. If an employee is not at his or her desk, productivity alarms go off by themselves. How then can businesses adopt productive remote work policies? A work culture based on empathy is key, according to Ron Thomas, Managing Director of Strategy Focused Group DWC LLC, Dubai. Ultimately, remote work is a necessary component of agile businesses which seek to hit the ground running once the economy picks up pace. Right now, missing out on being digitally accessible – in all aspects, could push businesses back many, many years.

Gulf Insider April - May 2020

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People & Culture

Qatar Keeps Cool Installs outdoor AC and paints roads blue.

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ast year Qatar began using air-conditioning in its football stadiums to keep fans and players cool. But now giant coolers have been installed alongside pavements and in outdoor shopping malls so the temperatures are bearable for people going about their everyday lives. And in Doha, the country’s capital, the Public Works Authority has painted the Abdullah Bin Jassim Street near one the city’s biggest souq markets the colour blue to reduce the temperature of the asphalt by 59-68°F degrees. The blue roads help to lower the temperature because dark-coloured roads absorb the heat form the sun more than lighter ones, which reflect it.

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People & Culture

Cold air will be pumped into stadiums at the 2022 football World Cup, which will be held in the Gulf state, via large cooling nozzles linked up to chilled water.

The blue roads help to lower the temperature because darkcoloured roads absorb the heat form the sun more than lighter ones, which reflect it.

The 18-month-long experiment is on a 250 meter stretch of road and uses a 1mm thick blue coating with a special heat-reflecting pigment. It also contains hollow ceramic microspheres which are designed to reflect infrared radiation. Engineer Saad Al-Dosari said: ‘The temperatures of dark asphalt is 20 degrees Celsius higher than the actual

In the Gulf the average surface temperatures of the water are around 32.4°C. With virtually no clouds or rain in summer, the rising sea temperatures lead to more atmospheric humidity. Jos Lelieveld, an atmospheric chemist at the Max Planck Institute in Germany, said: ‘These areas are warming faster than the rest of the globe, and in certain

temperature because black attracts and radiates heat’. Other cities around the world have also been conducting similar experiments to deal with the extreme heat. This summer, Los Angeles painted its streets in a greyish-white coating which can be 23°F cooler than the black surface. The air conditioning in Qatar works by pumping cold air onto the pavement through cooling nozzles after chilled water is brought to the street via a pipeline. Qatar is especially vulnerable to extreme heat because the country is a peninsula – a piece of land which sticks out into water – on the Arabian Gulf.

cities on top of that you have an urban heat island effect and urban pollution.’ In a bid to help everyone to stay cool, city planners have built walkways and streets pointing north to take advantage of breezes that come from that direction. Talking about the blue road Hossam Almeer, a 30-year-old data scientist working for Qatar Computing Research Institute (QCRI), said: ‘The degree of cooling could have a real impact on our electricity consumption since air conditioning makes up almost 70 per cent of household electricity usage.’

Gulf Insider April - May 2020

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Money & Business

What could happen to your job because of COVID-19?

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usinesses of all shapes and sizes have been hard-hit by the coronavirus pandemic. The GCC is no exception as many companies are struggling to stay afloat, with most their customers staying at home. In such a situation, it is only natural for business to cut down on expenses – and human capital is a significant one. Here’s a look at the different measures governments of all 6 GCC countries - namely Bahrain, Saudi Arabia, UAE, Oman, Kuwait and Qatar have taken to guide everyone struggling to make sense of the employment situation in the time of coronavirus. Bahrain: The government declared a $11.4 billion economic stimulus package, 52

Gulf Insider April - May 2020

which amounts to 29.6% of Bahrain’s annual GDP. Few provisions within that include paying the salaries of all Bahrainis in the private sector, for the months of April, May and June and, suspension of monthly work fees and fees for issuing and renewing expat work permits for April, May and June. Moreover, both private sector and public sector employees have been mandated to work from home unless necessary. Saudi Arabia: The government ordered the distribution of up to 9 billion riyals ($2.39 billion) to Saudi citizens working in private sector companies, covering 60% of their salary for 3 months. Workplace attendance has been indefinitely suspended for all public and private offices and a ministerial decision

allows companies in the private sector to reduce salaries by 40 percent. It also allows termination of contracts owing to the economic hardships resulting from the pandemic. The decision also stressed that employers are not allowed to terminate any employee, unless three conditions are met. Passage of six months since the salary cut was carried out.  Pay has been reduced, annual leave and exceptional leave has been all used up.  Company proves that its facing financial troubles due to the circumstances. 


Money & Business

It ensures that the employee will receive his/her salary if on annual leave within the period of 6 months.

UAE While the public sector has completely shifted to a remote working model, private sector businesses have been allowed to restructure the

workers must register the employees’ information in an online portal called the Virtual Labor Market to match them to other employers. If they are matched to alternative jobs, they would be allowed to move easily to the new job, even while remaining under the sponsorship of the original employer.

Oman The number of employees present in workplaces in government agencies should not be more than 30%. The private sector has also rolled out work-from-home arrangements for their employees and have been urged to refrain from deducting salaries of their employees. This includes possible deductions due to reduced working hours or suspension of duties resulting from the pandemic. Furthermore, the Omani government has urged companies to retain nationals while letting go of expat employees.

Kuwait Government and private sectors are on public holiday till 28th of May. Public has been urged to stay indoors and not venture outdoors unless absolutely necessary. The surfacing of thousands of illegal residents has prompted the government to look into visa traders and a possible tightening of expat visas to the country.

Qatar

The GCC is no exception as many companies are struggling to stay afloat, with most their customers staying at home.

contractual relationship with employees, based on mutual agreements. Business may gradually accept the following: Implementing a remote work system  Granting employees paid leave  Granting employees unpaid leave  Temporarily reducing salaries during the aforementioned period  Permanently reducing salaries 

Businesses seeking to permanently reduce the salary of an employee are required to get approval. For the duration of the crisis, companies that cannot afford to pay their foreign

Private and public sectors have directed 80% of their staff to work from home. The working day has been cut to six hours, from 7:00 am to 1:00 pm. Industrial areas around Doha housing expat workers have also been locked down, apart from a lockdown on Muscat till 29th May. While hiring and firing differ from employer to employer and their financial capacity to tackle the virus-induced slowdown, these mandates have been put in place to minimize employees’ risk of contracting coronavirus and to ensure that the financial setbacks are minimal for all involved.

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Car Bahrain

The Start of a New Era Gulf Insider attends the global launch of Porsche’s first all-electric sports car - the Taycan.

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Car Bahrain

The Turbo S accelerates from zero to 100 kmh in a blisteringly fast 2.8 seconds

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hether you know it or not, the electric car revolution is coming, and it’s going to change the experience of car

ownership. Last September, Gulf Insider visited Berlin for a very special event. Porsche presented to the world its ever first fully-electric sports car. This groundbreaking event was held simultaneously on three continents North America, China and Europe, and broadcast worldwide via live stream. The event locations were specially chosen to be a synonym for the three major sources of sustainable energy – water, sun, and wind: Niagara Falls, on the border between the United States and Canada, represented hydro-power.

A solar farm near Berlin – where we attended - represented solar power. A wind farm 150 kilometres from the Chinese city of Fuzhou represented wind power. The Berlin premiere, which took place on a beautiful German autumn’s day, was opened by Oliver Blume, Chairman of the Executive Board of Porsche AG. He announced to the media that; “the Taycan links our heritage to the future”, adding “this day marks the start of a new era.” I’ve been to many, many, many, car launches in my time. I have to say that the level of excitement from the hundreds of attending motoring journalists was unusually high at this event. So what of the car? Well, the Taycan (pronounced Tie-can) is a four-door high performance sports sedan designed to be driven and enjoyed on a daily basis. It’s certainly pleasing on the eye, bearing a resemblance to the Panamera. To emphasize the Taycan’s green credentials it has an entirely leather-free interior. The first models in the new series are the Taycan Turbo S and Taycan Turbo. They are at the cutting edge of Porsche E-Performance and are among the most powerful production models in the world. Two exceptionally efficient electric machines, one on the front axle and one on the rear axle, make the cars all-wheel drive. Less powerful versions will follow shortly. The flagship Turbo S accelerates from zero to 100 kmh in a blisteringly fast 2.8 seconds, with a top speed of 260 kmh Gulf Insider April - May 2020

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Car Bahrain

30,000 pre-orders taken so far

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Gulf Insider April - May 2020

and a range of up to 412 kilometres before it requires recharging. In case you are wondering how an electric engine can have a turbo – it doesn’t. The word ‘Turbo’ is used purely for branding continuity. The Taycan is the first production car with a system voltage of 800 volts instead of the usual 400 volts for electric cars. This means the battery can

be recharged in about 5 minutes using direct current (DC) from the high-power charging network for a range of up to 100 kilometres. Porsche is investing over six billion euros in electric vehicles over the next three years, and the company predicts that by 2025, every second Porsche sold will have an electric drive. It’s also been announced that the next generation Macan will be all electric. We’d love to tell you how this car was to drive, but unfortunately we were just there to witness the launch. When we do eventually get to drive this very special car, and it has still not arrived in Bahrain, we will pass on our views, but reports so far indicate that it’s impressive in every way. Customer interest has reportedly been huge, with 30,000 pre-orders taken. This car is so new that the Bahrain dealership isn’t able to yet provide details of when it will arrive in Bahrain, or to provide us with approximate prices. But stay tuned for more information as we get it, or contact

Porsche Bahrain on +973 17 459 911


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Photo of the Month

“The New Normal”

Pictured from left to right: Ritz-Carlton management Lamya Sebti, Jeremy Canivet, Bernard De Villéle with Gulf Insider’s Charlie Cooksey

Got some cool car photos we can feature? Send them our way! Editorial@gulf-insider.com

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