LEADERS Middle East by Lorenzo Jooris

special: uae’s economic and trade outlook

Sheikh Mohammed Bin Rashid Al Maktoum Ruler of dubai, Uae vice president and prime minister.

AN INTERVIEW

WITH THE HONORABLE TONY BLAIR

Turkey

SPECIAL Report

LEADERS ME / No. 1 - 2014

“We have achieved a lot over the last 10 years, but still the best is yet to come.”

Elegance is an attitude Kate Winslet

www.longines.com

Breitling for Bentley

CONTENTS Index

Dubai Ready, Expo 2020

Asia has the world‘s most billionaires

An Interview with Sheikha Lubna Al Qasimi

Conversation with Carlos Slim

Hire Great People – And Exploit Them!

Peter Brabeck-Letmathe

ADVERTISING

Ashoka Chairman Bill Drayton on the Power of Social

Mia Harvey mia@leaders-me.com

Entrepreneurship

EDITOR IN CHIEF Lorenzo Jooris ljooris@leaders-me.com

MKT AND DISTRIBUTION

Rethinking Migration

Oman’s Oil sector

A time for heroes

ARTS DIRECTOR

Sheikh Saleh Abdullah Kamel

The Future of Retail - Mohammed Alshaya

Amer Flehan amer@leaders-me.com

Starbucks a Global Phenomena Howard Schultz

Success Breeds Success Interview with

HRH Prince Alwaleed bin Tala Inteview with Canadian Ambassador / UAE – CANADA:

Strong political and economic ties. Dubai’s Sheikh Mohammed shows how powerful branding

Katie Pattison Hart katie@leaders-me.com

PHOTOGRAPHY Ruper Chesman rupert@leaders-me.com

DISTRIBUTED: TAWSEEL (Distribution and Logistics)

PRINTED: MASAR Printing and Publishing

can be as a leadership tool

Lincoln, Edison and Einstein on innovation

Global Cities: A path towards sustainable development

KOC looks ahead - Sami Al Rushaid

Chamber of one of the world’s busiest cities

Successful People Start Before They Feel Ready

104

Cars, The New MBW M5 Sedan

106

watches

110

The Seychelles, Three hour and a half flight from Dubai

112

Welcome to paradise, Maldives

116

Luxury Boats

118

One&Only Royal Mirage, Dubai

120

Reproduction in whole or in part of any article without prior written consent from the publisher is strictly prohibited. Leaders Middle East/One World Communications FZE is not responsible for any errors or omissions that might occur.

Leaders Middle East is published by One World Communications FZE PO BOX 32429 RAK Media City United Arab Emirates T +971 4 451 7448 F +971 4 330 3365 info@leaders-me.com

INDEX DUBAI, SPECIAL REPORT 10

In just three decades Dubai has grown from a humble fishing village and trading dock to a world renowned international business center. What was once a sun-scorched village occupied by pearl divers and traders is now a .highway to the world

QATAR TODAY - 24 The overall outlook for Oman remains positive in 2013 despite heightened Qatar downside risksToday to global recovery.Gross domestic product grew a real 5.5 percent in 2012, according to an International Monetary Fund estimate, after a 5.0 percent rise in 2010. However, Oman may be adversely affected if oil prices .fall because of worsening global conditions

AN INTERVIEW - 30 WITH THE HONORABLE TONY BLAIR Tony Blair is the Representative of the Quartet – U.S., Russia, E.U., and U.N. – to the Middle East, through which he is focused on working with the Palestinian Authority to prepare the institutions and groundwork for statehood, as part of the international community’s effort to achieve Israeli-Palestinian peace. The goal of the Tony Blair Faith Foundation is to promote respect and understanding .among major religions and to make the case for religions as a force for good

OMAN IN FOCUS - 36 Qatar has successfully demonstrated how visionary leadership, government policies and business can work productively to produce phenomenal economic growth. With each of its projects, be it in sports, infrastructure, culture, education and media, Qatar has firmly placed its footprint on the international .map

AN INTERVIEW WITH DONALD J. TRUMP - 40 Donald Trump is the author of 10 best-selling books, including The Art of the Deal, Never Give Up, The Art of the Comeback, How to Get Rich, Think Like a Billionaire, Trump 101: The Way to Success, Why We Want You to be Rich, and The America We Deserve. He serves on the board of the Police Athletic League, on the advisory boards of Lenox Hill Hospital and United Cerebral Palsy, as Chairman of the Donald J. Trump Foundation, and as Co-Chairman .of the New York Vietnam Veterans Memorial Fund

KUWAIT STORY - 46 His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, fourth son of the late Sheikh Ahmad Al-Jaber Al-Sabah, who was born in Kuwait on June 6, 1929, and educated in the schools of Kuwait and later completed his studies with private tutors. His Highness Sheikh Sabah had been a leading political figure for the past four decades, and headed Kuwait`s diplomacy since 1963 .when he became the country`s foreign minister

TURKEY REPORT - 68 It took a decade of political and economic reforms, a strong parliamentary democracy, a customs union with the EU, and a great deal of ingenuity, but Turkey has done what most emerging markets of the world are dreaming of; it tripled its per capita income from US$3,492 to 10,444 US$ and reduced poverty, while growing its economy more than 8 per cent a year, achieving in the last two years the highest rate of GDP growth after China, to become .one of the worldâ&#x20AC;şs fastest-growing economies

AN INTERVIEW WITH PRESIDENT JAMES MICHEL - 88 James Alix Michel is the third President of the Republic of Seychelles, having been elected to office in July 2006 and re-elected for a second term in May 2011. A keen educationalist, President Michel was directly involved in the creation of the University of Seychelles. At the establishment of the university on 17th September 2009, he was named its chancellor. One of his greatest achievements as President has been the revitalization and reform of the .Seychelles economy

THIS ISSUE S LEADERS CARLOS SLIM HELÚ Carlos Slim Helú studied Civil Engineering at the National Autonomous University of Mexico School of Engineering, where he also taught Algebra and Linear Programming while studying for his degree. In 1965, at 25 years of age, he began to build the foundations of Grupo Carso. Since the 1980s, Slim has been a noted businessman in various industrial, real estate, and commercial fields.

Howard Schultz, 57, is the chairman and CEO of Starbucks. He originally bought the company, then simply a purveyor of high-quality coffee beans, in 1987 and went on to transform it into America›s and the world‘s leading coffeeshop chain: Starbucks currently has more than 16,000 stores in 54 countries and annual revenue of more than $10bn. Having stepped aside from the CEO role in 2000, Schultz famously returned as chief executive in January 2008 after a slump in sales.

BILL DRAYTON

SHEIKH SALEH ABDULLAH KAMEL

Founded in 1980, Ashoka has steadily built a reputation for fostering citizen-led innovation focused on social change. The organization helped originate the concept of social entrepreneurship, working outside of the government and business sectors to find sustainable solutions for societal needs.

Sheikh Saleh Abdullah Kamel is a Saudi businessman, chairman and founder of the Dallah al Baraka Group (DBG). Chairman of ABG and he is also the chairman of the General Council for Islamic Banks. He is estimated to be worth about $5.3 billion, ranking number 12 on Arabian Business list of richest Arabs 2008. Most of Kamel’s business work focus on coded TV channels, trade and civil services.

DONALD J. TRUMP

MOHAMMED ALSHAYA

HRH PRINCE ALWALEED BIN TALAL Prince Alwaleed bin Talal was born in Riyadh and educated in the U.S. He obtained a degree in Business Administration and graduated Magna Cum Laude from Menlo College in 1979 and earned a Master of Social Science degree with Honors from Syracuse University in 1985. Prince Alwaleed was ranked 26th in the 2011 Forbes magazine list of billionaires and is now the largest single investor in Citigroup.

SAMI AL RUSHAID

HOWARD SCHULTZ

MBA, Wharton School of Business, University of Pennsylvania, US. Executive Chairman, Alshaya Group. Chairman, Mabanee, the largest real estate developer in Kuwait. Member: Supreme Council of Planning and Development, Kuwait; Board of Overseers, Wharton; Foreign Director Investment Council, Turkey. Member, Board of Trustees: Arab Thought Foundation; Mentor Foundation International.

HE HAMAD BUAMIM

HE Hamad Buamim was appointed as a member of the Board of Directors of Dubai World in December 2010 and is the Director General of Dubai Chamber of Commerce & Industry, a post he has held since November 2006. He was the Secretary General of Dubai Economic Council, a corporate manager in HSBC Bank, a lecturer of Finance & Banking in the UAE University’s College of Business & Economics.

SHEIKHA LUBNA AL QASIMI Named one of the world’s 100 most powerful women by Forbes magazine, Sheikha Lubna Al Qasimi, minister of foreign trade for the United Arab Emirates (UAE) and 1981 computer science alumna, was awarded an Honorary Doctorate of Science at CSU, Chico’s 2009 Commencement ceremony. Sheikha Lubna was one of the first women in the UAE to obtain a technology degree, and in 2004 she was appointed minister of economy and planning.

Write to PelĂŠ Montegrappa launches writing competition to celebrate the beautiful game and its king PelĂŠ

INFOCUS

THE DUBAI STORY In just three decades dubai has grown from a humble fishing village and trading dock to a world renowned international business center. What was once a sun-scorched village occupied by pearl divers and traders is now a highway to the world.

ubai began its meteoric rise into the global community in the early 1970s. Strategically located at the nexus of three continents, Dubai has a vantage proximity to a market of over two billion people making it a natural nucleus of trade and commerce. Under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Vice President of the UAE, a sophisticated free enterprise environment has been created. World-class infrastructure, ultra-modern facilities, a highly developed financial sector and a westernised business approach, Dubai is now well established as an economic powerhouse alongside London, New York, Hong Kong and Tokyo.

THE MAN BEHIND THE VISION: His Highness Sheikh Mohammed bin Rashid Al Maktoum is the United Arab Emirates, Vice President and Prime Minister and Ruler of Dubai. He was born on July 15, 1949, in the Al Maktoum home in Shindagha, near Dubaiâ&#x20AC;&#x2DC;s famous creek. He is the third of four sons for His Highness Sheikh Rashid bin Saeed Al Maktoumâ&#x20AC;&#x2DC;, Their Highnesses Sheikh Maktoum, Sheikh Hamdan and Sheikh Ahmed.His parents (Sheikh Rashid and Sheikha Latifa) and his grandfather (His Highness Sheikh Saeed bin Maktoum Al Maktoum, the late Ruler of Dubai). On January 4th, 2006, His Highness Sheikh Mohammed bin Rashid Al Maktoum became the Ruler of Dubai following the death of Sheikh

Maktoum bin Rashid Al Maktoum during a visit to Australia, and on January 5th, the members of the UAE Supreme Council elected Sheikh Mohammed the UAE Vice President. Sheikh Mohammed embodies energetic and successful leadership. He is a man of his word; he has insisted on excellence and achieved nothing less; he has defined the role of leadership and fulfilled it. Thanks to his vision, Sheikh Mohammed has competently authored the Dubai success story in record time and put the United Arab Emirates on a unique course, which nations around the world compete to replicate.

Since becoming the Vice President and Prime Minister of the UAE, and Ruler of Dubai, revolutionary initiatives have been rolled out. The year 2007 witnessed unique achievements for Sheikh Mohammed both locally and regionally. On February 3rd, he announced the Dubai Strategic Plan 2015, which aims to bolster Dubai›s leading position in the region and boost its role as an international economic and financial hub. The strategy will be used as a road map for development over the coming years. The past few years have witnessed significant progress in economic and social development: e-government was introduced; the Dubai Metro, a light rail system that transports tens of thousands of commuters daily -- was inaugurated and a significant number of investment companies were established; these companies have formed global partnerships in the fields of industry, commerce, tourism, ports management and real estate investments. A host of other cultural projects were also launched, including the Muhammad the Messenger Museum, the Universal Museums project and the Mohammed bin Rashid Gardens. Sheikh Mohammed set out his comprehensive world view in his book «My Vision,» where he describes his philosophy and his political and economic vision. The Arabic version of the book continues to be a best-seller throughout the Middle East and elsewhere. He offers a detailed account of how Dubai and the UAE have been guided to their present-day status as international centers, renowned for their high quality commercial and financial services, luxury tourism and their drive towards human development and sustainable structure. Through generosity and dedication, Sheikh Mohammed has achieved notable success while shouldering the great responsibility of leading Dubai and the Federal Government.

“The Dubai strategic plan 2015, which aims to bolster dubai leading position in the region and boost its role as an international economic and financial hub.”

303 15

DUBAISTORY

DUBAI READY 2020 EXPO CONNECTING MINDS, CREATING THE FUTURE

The UAE is bidding to host the World Expo 2020 in Dubai under the theme â&#x20AC;&#x2DC;Connecting Minds, Creating the Futureâ&#x20AC;&#x2122;. Every five years and for a period of six months, World Expos attract millions of visitors. The World Expo has never been held in the Middle East, Africa and South East Asia in the history of the event. A World Expo in Dubai in 2020 would be the first to be held in the MENASA (Middle East, North Africa and South Asia) region. As the global community faces ever more complex, and increasingly interconnected challenges, the links between people, societies and ideas have never been more important. Dubai Expo 2020 will be a platform for connectivity to help pioneer new partnerships for growth and sustainability for the future.

World Expo 2020, the international event Dubai is bidding hard to bring home, would feature a spectacular exhibition, pavilions, cultures and business gatherings. What Dubai is hoping to do with it is make it a benchmark for human progress and a roadmap for the way forward. Located on 438 hectares, the iconic design of Dubai Expo 2020 will be an additional permanent legacy to leverage the surrounding facilities and fostering innovation, education and global collaboration. The site’s masterplan has been designed to visualise the country’s Expo bid theme: Connecting Minds, Creating the Future. On the southwestern edge of the city, equidistant between Dubai and Abu Dhabi and connected to 300 global destination every day, the site chosen is one of the largest ever earmarked for an Expo world fair. It will be 10 minutes from Jebel Ali Port and situated next to the new Dubai World Central Airport. The designated site will be able to cater for 247 participants and over 25 million visitors with transport and pedestrian circulation strategies prepared accordingly. Moreover, further connectivity offered through emirates such as Sharjah. The site will also have easy access to several of the city’s main expressways, including Shaikh Zayed Road and the Dubai Bypass Road. Inspired by traditional Arab souqs, the design integrates the UAE’s unique architectural heritage and environment of vibrancy, interactive and trade with the requirements of the Expo to foster the fundamental principles of innovation, partnership and collaboration between participants and visitors. From the exciting energy of the souq to the area for the best practices and innovation, opportunities bounce to form partnership for all nations as well as for private and public sectors inside. Mobility, is the second way that weaves into the fabric of the design of Dubai Expo 2020, where state of art, computer central and logistic system are provided. A fully automated underground system will connect all pavilions and support other facilities and enable invisible services along the opening hours. Moreover, Dubai said it plans build an underground railway system to connect the Al Wasl with the outer pavilions. Dubai is competing against four other candidate cities, Sao Paulo (Brazil),

Ayutthaya (Thailand), Azmir (Trukey), Ekaterinburg (Russia), bidding to host the 2020 edition of the monumental global gathering. The winner will be announced in November following a vote by the 163 member nations of the Bureau International des Expositions (BIE), the Parisbased inter-governmental organisation responsible for the World Expo. By 2020, the emirate will be able to offer enough transport links to accommodate about 25 million visitors to Dubai for Expo 2020. The masstransit options will include zero-emission buses, new Metro stations and dedicated lanes on key arterial roads to take visitors to the planned site at Dubai Trade Centre – Jebel Ali. As 80 per cent of the visitors are expected to use the mass transit, the Metro will be able up to ferry more than 75,000 people a day to the site, while commuters can board one of 750 ExpoRider buses from 35 points across the city. The masterplan for 2020 includes construction of an extension to the Red Line that will take passengers from Jebel Ali to the Expo. In addition to all these, Expo lanes will be provided on the key arterial routes leading the site for the use of official vehicles, ExpoRider busses and taxis. Whatever infrastructure will be built it is an investment for the future. The site will serve as a permanent attraction beyond 2020 and will enhance further the UAE’s long-term appeal as a premier destination for high-profile global events. After the six-month event, the facility of 423 hectares would be further developed as a state-of-theart exhibition and convention centre. The first phase of which would be the indoor entertainment venue to be built for Expo 2020. There will be an institute Zone that encompasses research centres and university focused on fostering collaborative thought leadership between academia, corporations and entrepreneurs. The university would form the core of a new “institute zone” and would include research centres. Legacy’ is one of the key words to be reflected through the Expo 2020 theme and post the mega event, the zone of the site will be transferred into a National Museum commemorating the evolution of the UAE and celebrating the first World Expo for the Arab World.

303

ASIamoney

ASIA HAS THE WORLD‘S MOST BILLIONAIRES Asia has more billionaires than any other continent, followed by North America and Europe, AFP reports according to a survey by a China-based wealth magazine released.

There were 1,453 people around the world with a personal wealth of $1 billion or more as of January, said the Hurun Report, a luxury magazine publisher that compiled the list. Asia had 608 billionaires, North America 440 and Europe 324, it said in a statement. Among individual countries, the United States and China dominated with 408 and 317 citizens respectively on the list, followed by Russia, Germany and India. Mexican telecoms czar Carlos Slim, 73, was ranked as the “Richest Man on the Planet” with a personal fortune of $66 billion. Slim also topped the Forbes magazine annual global rich list last year. US investor Warren Buffett and Amancio Ortega of Spain, founder of fashion brand Zara, were second and third in the Hurun Report list with net worth of $58 billion and $55 billion respectively.

It estimated the total wealth of the world‘s dollar billionaires at $5.5 trillion, roughly the size of the Japanese economy last year. “This past year has seen a rebound in the wealth of the private sector,” it said, adding the net assets of the 10 richest people on the list rose 22 percent over the year, or $250 million a day. Real estate, telecommunications, media and technology and retail were the most common sources of wealth, it added. Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, said the true number of billionaires in the world could be three times higher as some super-rich hid their worth. “Some people deliberately make their wealth a secret because... they gained it through illegal ways,” he told reporters at a press conference. “Some others simply prefer to keep a low profile.” Hoogewerf, an accountant by training, previously compiled the Forbes rich list.

DUBAISTORY

UAE’S ECONOMIC AND BUSINESS OUTLOOK

SHEIKHA LUBNA AL QASIMI MINISTER OF TRADE AND COMMERCE OF THE UAE

Named one of the world’s 100 most powerful women by Forbes magazine, Sheikha Lubna Al Qasimi, minister of foreign trade for the United Arab Emirates (UAE) and 1981 computer science alumna, was awarded an Honorary Doctorate of Science at CSU, Chico’s 2009 Commencement ceremony. Sheikha Lubna was one of the first women in the UAE to obtain a technology degree, and in 2004 she was appointed minister of economy and planning, the first woman minister to serve in the cabinet. A member of the royal family of the emirate of Sharjah, she lectures throughout the world on economic, gender, and equality issues, and in 2005 was nominated for the Nobel Peace Prize.

How would you describe the United Arab Emirates to someone who is unfamiliar with it? The UAE is a success story beyond compare. I am proud of our past, our rich culture and heritage, our spirit of enterprise, our political stability, our visionary leadership, our religious and cultural tolerance, and our relentless pursuit of quality and excellence. The UAE is a land of opportunities for everyone, irrespective of your nationality, culture, religion, gender, or ethnicity. From an economic perspective, the UAE has grown at a phenomenal rate in recent years, diversifying significantly from an oil-reliant economy and launching several pioneering development projects, especially in health care, education, real estate, and infrastructure development. The policy of openness adopted by the UAE’s leadership has been the prime driver in establishing the UAE as the second-largest Arab economy. What are your top priorities as minister of foreign trade of the UAE? My first mission as minister of foreign trade was to strengthen our trade relations with key countries around the world, especially within the Gulf Cooperation Council (GCC). That’s why one of my priorities is to make sure that the UAE maximizes the benefits of the GCC Common Market. Aside from the obvious benefit of enhanced regional trade, the common market strengthens our negotiating position with international economic blocs. My ministry is also coordinating at the GCC level as an economic block to achieve free trade agreements with key trading partners and assume a solid role alongside the World Trade Organization. An important factor for convincing our allies to enter into commercial agreements with us is to further intensify our diversification efforts, to expand the number of businesses we engage in. Given the present downturn, another focus is to discourage protectionism within the region and throughout the world. We need further stimulation of the global economy to expedite the recovery process.

respect and honor they deserve; women should always be considered equal to their male counterparts. This is another area where the UAE is setting a fine example for regional countries. In the UAE today, women have proved their worth in every domain, be it medicine, engineering, media, sports, finance, or politics. During my first cabinet post as minister of economy, my initial challenge was to demonstrate the ability of women to lead and to participate in governance. Today, women in the UAE hold four seats in the federal cabinet as ministers and occupy nine seats in a total of 40 seats in the Federal National Council, the country’s supreme legislative body. This is in addition to a large number of key posts women hold in various ministries and local governments. Among your many accomplishments is developing a customized manifest documentation system for the Dubai Port Authority, reducing cargo turnaround from one hour to 10 minutes, and devel-oping the leading online business-to- business company in the Middle East. What role did your training at Chico State play in such accomplishments? My professors were consultants in the field who sent us to Silicon Valley for our projects and assignments, so I was exposed to real-life scenarios that taught me to be diligent, disciplined, and accurate. My classes were very competitive, and we had study groups that emphasized teamwork, so I learned a lot about leadership and group dynamics. All of these experiences helped me perform above expectations in the organizations I managed and worked for. What drives you in your work? The fact that I have a rare opportunity to make a major contribution to the growth and sustained progress of my country, which I am so proud of, is inspiration enough. I hope to be a role model who inspires other Arab women to fight all obstacles and pursue their dreams.

What is the most important trade issue in your country’s relations with the United States? Today, the UAE is home to more than 30,000 Americans and more than 750 vibrant American-owned businesses. Even in terms of trade relations, we maintain a strong association with the U.S.; we are in fact the single largest export market for U.S. goods and services in the Arab World. Our bilateral trade with the U.S. in 2008 was around $15 billion, representing an increase of 32 percent over 2007’s $11.5 billion. We are also heavily involved in several university and non-governmental organization partnerships with the U.S. that promote knowledge transfer while advancing local capacity. Prominent U.S. universities that have established their own programs and facilities in the UAE include New York University, Michigan State, George Mason, and Harvard University. Moreover, faculty from Johns Hopkins and partnerships with Cleveland Clinic, Harvard Medical School, and Mayo Clinic continue to advise us on public health issues. You have given lectures around the world on gender issues and equality. Why is it important to you to talk about gender issues? What is the most important change that needs to happen to improve the treatment of women worldwide? I am a firm believer that the true progress of a society or a nation can be determined by the way it treats women. Progressive thinking and economic prosperity are meaningless unless women are given the

“I am a firm believer that the true progress of a society or a nation can be determined by the way it treats women.”

Globalperspectives

A CONVERSATION CARLOS SLIM Carlos Slim Helú studied Civil Engineering at the National Autonomous University of Mexico School of Engineering, where he also taught Algebra and Linear Programming while studying for his degree. In 1965, at 25 years of age, he began to build the foundations of Grupo Carso. Since the 1980s, Slim has been a noted businessman in various industrial, real estate, and commercial fields. He currently serves as Chairman of the board of directors of Impulsora del Desarrollo y el Empleo en América Latina, S.A. de C.V. (IDEAL); Chairman of Fundación Telmex, A.C.; Chairman.

22 18

THE SOCIAL ENTREPRENEUR Fundación Carlos Slim Helú, A.C.; Chairman of the Executive Committee of Consejo Consultivo de Restauración del Centro Histórico; and Chairman of Fundación del Centro Histórico, A.C. Slim continues to be active in business although his work is primarily focused on education, health, and employment in Mexico and Latin America through the foundations he chairs and companies in the infrastructure arena. His three sons have taken over the reins of his businesses. Slim has lectured at public and private institutions as well as at international organizations such as the Economic Commission for Latin America (ECLA). He was the first Chairman of the Latin American Committee of the board of directors of the New York Stock Exchange. In December 2008, Slim was nominated a member of Research and Development Corporate Executive Board. Company Brief Grupo Carso (www.gcarso.com.mx) has operations in heavy industry, services, retail, and consumer goods through CICSA, Condumex, Hoteles Calinda (now OSTAR Grupo Hotelero), Nacobre, Sears, Sanborns, and Promotora Musical. Grupo Carso currently encompasses the following holding companies: América Móvil, Grupo Financiero Inbursa, Impulsora del Desarrollo y el Empleo en América Latina (IDEAL), Inmuebles Cars, and Minera Frisco.

can work hard and efficiently in all sectors of the economy. So we have all the desired conditions to be a very attractive place for investments, both national and international. When you look at countries that need to grow significantly, they require investments of 25 to 30 percent of gross national product. Often, the foreign investments are not more than 10 to 15 percent. But in Mexico, foreign direct investments in recent years have been very active, so the potential for more in the near future is very strong.

Foundation Brief The Carlos Slim Foundation (www.carlosslim.com) was created in 1986. With strong social and high impact programs focused on the most vulnerable population, the foundation has directly benefitted more than 29.7 million people. The foundation’s focus is on the following areas: education, health, nutrition, social justice, culture, human development, aid in natural disasters, economic development, protection and conservation of the environment, and aid to Latin America and sister nations, as well as to public and private institutions.

For your businesses, do you see growth coming mainly from within Mexico or from international markets? We have strong growth in Mexico. In the mining business, there are many Canadian companies and nati onal Mexican companies involved. We have to invest around $70 or $80 billion a year in infrastructure and that will create a lot of opportunities. There is also potential growth in housing and real estate. Mexico is a place with millions of people in many areas that have great potential for growth and development.

In light of economic challenges, is this a time of opportunity or is your outlook more reserved? We have a long-term vision, resources, and a healthy company so there are always opportunities to be found in difficult times. With problems in many developed countries now, the private sector will seek out possibilities for investment. In terms of what is going on in Europe and the U.S., with big fiscal deficits and so much unemployment and lack of economic activity, governments need to defer to private investors, who can create the economic activity and jobs that countries need. Economic activity for the business community is significant, especially with such low interest rates. The private sector can create a lot of projects that have better returns. With very lowcost financing and substantial resources in the banking system, a long-term vision is needed for economic activity in many countries. Is there a good understanding of the opportunities for foreign investment in Mexico? Many people focus on the BRICs without looking at the bigger picture. A country like Mexico has strong potential and we have seen a lot of national investment. Mexico has a healthy banking system, healthy macroeconomics, and a good labor pool – our people have proven they

Is the government working closely with the private sector to encourage positive economic activity? Yes. Mexico has instituted a new law regarding public/private partnerships that has been very successful. Many investments have gone in this direction over the past 10 years and, each time, with more intensity. In the future, there will be even more growth of this type of investment. In all areas, public/private partnership is the best way to use private investment for public service. In terms of these issues, what is the public sector role? The only way the public sector can correct a fiscal deficit is by increasing revenues or decreasing expenses. To increase revenues, you can increase taxes, which is tough for people because taxes are already high and further increases crunch a society.

“Many people focus on the BRICs without looking at the bigger picture. A country like Mexico has strong potential and we have seen a lot of national investment.” 23

DUBAISTORY

Paul Sloane is the founder of Destination-Innovation, a consultancy that helps organisations gain competitive advantage through innovation. He is the author of 17 books on problem-solving and lateral leadership. He was described in the Independent as the ‹King of Lateral Thinking Puzzles›.

HIRE GREAT PEOPLE AND EXPLOIT THEM! By Paul Sloane: Talking about his new film , ‘To Rome with Love’, Woody Allen said, ‘I’ve got great people, and they make me look good. That’s the thing; you hire Penelope Cruz, Ellen Page, or Alec Baldwin and they’re great. They were great before they met me, they’ll be great after they leave me. And I exploit them. I look like a hero, but you know, that’s the trick.’ In this quote Allen reveals a secret shared by successful managers, directors and leaders – hire really excellent people and then exploit them. How do you do this? First recruit people who are even smarter than you are. Give them clear goals and then get out of their way. Give them plenty of freedom to develop their own ideas. Work them hard. Give them responsibility. This means that you can do less of the everyday stuff because they will cover it for you. You can then spend more time on highlevel strategic and interesting issues. Maintain a light-touch supervision just to check that they are broadly on the right track. Don’t tell your people what to do. Tell them what the goals are and then ask for their ideas and suggestions. Very often, their best ideas are better than yours. So go with their ideas. Let them implement their own suggestions – they will work twice as hard to prove they were right. Of course you give them the praise and credit for the innovations but it makes you and your department look really good. So there is the secret. Be selfish. Get really talented people to do all the work for you. Harness their ideas. Make them feel empowered and they will drive your organisation and your career forward. Exploit them ruthlessly! The funny thing is, they will love you for it.

“Don’t tell your people what to do. Tell them what the goals are and then ask for their ideas and suggestions.”

Myopinion

WE WILL FAIL TO FEED THE WORLD UNTIL WE FIX THE WATER CRISIS Peter Brabeck-Letmathe led the Nestlé Group from 1997 to 2008, first as CEO, until 2005, and then as Chairman and CEO. In April 2008, he handed over the office of CEO and remained Chairman of the Board of Nestlé S.A.

PETER BRABECK-LETMATHE CHAIRMAN OF THE BOARD AT NESTLÉ S.A

Peter Brabeck-Letmathe serves as ViceChairman of both L‘Oréal and Credit Suisse Group. He is Chairman of the “2030 Water Resources Group”, a Public Private Partnership housed in the IFC/World Bank, Washington. Mr. Brabeck-Letmathe is also the Chairman of the Board of Nestlé Health Science S.A. and of Delta Topco Limited (Formula 1). In addition, he is member of the Exxon Mobil Corporation Board and the European Round Table of Industrialists (ERT), where he is part of the Steering Committee and chairs the Foreign Economic Relations workgroup. Born in 1944 in Austria, Peter BrabeckLetmathe graduated from the University of World Trade in Vienna with a degree in Economics. He has received several awards, including the Schumpeter Prize for Outstanding Contribution in Disruptive Innovation, the Austrian Cross of Honour for services to the Republic of Austria and “La Orden Mexicana del Aguila Azteca”. The University of Alberta (Canada) conferred an Honorary Degree of Doctor of Laws on him and he serves as the Chairman of its External Advisory Board. The world is walking towards a crisis that it barely recognises. In scale and significance, it dwarfs all the others it is intricately connected with. This issue is water. As unbelievable as it sounds, we are running out of it and the window we have to solve this issue is narrow and rapidly closing. O ‪ ver the next 20 years, the world’s thirst for water will grow by 50%. By 2030, water withdrawals will exceed natural renewals by 60%.‪‬‬‬‬ This will have a devastating impact on the quality and cost of the water we all need to survive, but in ways that are perhaps not immediately obvious. The water we drink, clean, and cook with represents only the smallest part of the water we use. Far greater is the 90% of the world’s total supply of water

that we use to grow the food we eat.‪‬‬ This is because it takes one litre of water to produce one calorie of food. Compared to the 34- litres of water we drink, the average daily diet requires up to 6,000 litres of water to grow the crops that find their way on to our plates.‪‬‬ Put this in the context of feeding a growing population and you immediately realise that the acute water shortages, that will directly affect a third of the world’s population by 2030, will also ultimately lead to a critical shortage of food the world over. Less food will result in higher prices and plunge millions into poverty and famine.‪‬‬ We face global shortfalls by 2025 If we continue the way we are using water today, and factor in higher food needs for a growing population, competing water users such as oil and thermal energy, as well as municipal water for a rapidly growing number of urban dwellers; we should expect global shortfalls in cereal production in an order of 30% by 2025. This would be a loss equivalent to the entire grain crops of India and the United States combined.‪‬‬ As we can see, the crises affecting water and food are interdependent. Astonishingly, however, it remains absent from international to-do lists. Suggesting solutions to a formidable challenge My aim is to bring greater visibility to the issue, and to dare to suggest solutions to such a challenge. In practice, many of these challenges are intensely local. This was what first and perhaps most powerfully brought to life for me in March 2004 during a conversation with farmers in the Indian Punjab region. With water tables falling across the region one metre per year, these farmers were dealing directly with the effects of an overuse of water to irrigate fields with pumps originally

subsidised by the government and electricity provided for free. They knew that if groundwater tables continued to fall, their own livelihood would be at risk. But with neighbouring villages likely to continue withdrawing water, and ongoing government subsidies, the farmers saw the utter futility of changing their own habits without effective joint efforts of all major stakeholders in their watershed; and so they wouldn’t. Played out on an international scale, this is the crux: without partnership between all those who share a stake in the problem we won’t make progress towards any meaningful solution. The enormity of the challenge is great, and the need to act is urgent. Here on LinkedIn, and on my blog, I will share some of the thinking and potential solutions that I come across as part of my job and through my involvement in international groups such as the WEF 2030 Water Resources Group (WRG). Addressing the water challenge should also be part of the post-2015 Millennium Development Goals discussion. There is no silver bullet to solving a challenge of this enormity, so practical thoughts on how we can better address this issue are always welcome.‪‬‬

“If we continue the way we are using water today, and factor in higher food needs for a growing population, competing water users such as oil and thermal energy, as well as municipal water for a rapidly growing number of urban dwellers.”

INfocus

QATARâ&#x20AC;&#x2122;S STORY THE QATAR SUCCESS STORY IS ABOUT ENTREPREUNERSHIP, VISION AND THE INGENIOUS LEVERAGING OF COUNTRY RESOURCES.

Qatar has successfully demonstrated how visionary leadership, government policies and business can work productively to produce phenomenal economic growth. With each of its projects, be it in sports, infrastructure, culture, education and media, Qatar has firmly placed its footprint on the international map.

Sheikh Tamim bin Hamad bin Khalifa Al Thani, born 3 June 1980) is the Emir of the State of Qatar. He is the fourth son of the previous Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani. He became Emir of Qatar on 25 June 2013 after his father‘s abdication. Sheikh Tamim has held a variety of government posts within Qatar and also worked to promote numerous sporting events within the country. At 33 years old, Tamim is the world‘s youngest reigning monarch. Sheikh Tamim was commissioned as a Second Lieutenant in the Qatar Armed Forces upon graduation from Sandhurst. He became the heir apparent to the Qatar throne on 5 August 2003, when his elder brother Sheikh Jasim renounced his claim to the title. Since then he was groomed to take over rule, working in top security and economics posts. [3] Working in a government security post, he promoted stronger ties with Saudi Arabia, a neighbor and often contentious rival to Qatar. He is believed to have played a key role in Qatar‘s support for the Libyan rebels who ultimately ousted Muammar Gaddafi. In 2009, he was appointed deputy commander-in-chief of Qatar‘s armed forces. Sheikh Tamim promoted sport as part of Qatar‘s bid to raise its international profile. In 2005, he founded Qatar Sport Investments, which owns Paris Saint-Germain F.C. among other investments. In 2006, he chaired the organizing committee of the 15th Asian Games in Doha. Under his leadership, all member countries attended the event for the first time in its history. That year Egypt‘s Al Ahram voted Tamim “the best sport personality in the Arab world”.[2] Under his guidance, Qatar won the rights to host the 2014 FINA Swimming World Championships and the 2022 FIFA World Cup. Tamim is a member of the International Olympic Committee and the National Olympic Committee chairman. He headed Doha‘s bid for the 2020 Olympics.

On 25 June 2013, the then Emir of Qatar and Tamim‘s father HH Sheikh Hamad bin Khalifa Al Thani revealed his plans to step down as the Emir in a meeting with his close relatives and aides. Tamim then became the Emir of Qatar after his father handed over power in a televised speech. He was the first ruler, in a succession of three Qatari rulers from the Al Thani family, to ascend to power without resorting to a coup. According to The Economist, of his previous sibling rivals to the throne, “One played too much, the other prayed too much.” The transition of power was expected to be smooth, as family members hold many of the nation‘s top posts. Analysts said he would likely be under immediate pressure to reduce Qatar‘s support for the rebels in the Syrian Civil War, which Tamim had previously supported. He would be tasked with overseeing substantial upgrades to the national infrastructure, which have recently gotten underway. While some view Tamim as more religious than his father, most analysts expect him to retain his father‘s largely pragmatic habits of governing – using Islam to further objectives where useful, but not pushing strictly Islamic agenda items such as outlawing alcohol.

Sheikh Tamim heads the Qatar Investment Authority board of directors. Under his leadership, the fund has invested billions in British businesses. It owns large stakes in Barclays Bank, Sainsbury‘s, and Harrods. The fund also owns a share of Europe‘s tallest building, the Shard.

The young Emir‘s transition to power was welcomed by leaders across the World, who expected Tamim to continue the good work in the footsteps of his father and increase Qatar‘s role in vital international affairs including the Syrian crisis and Darfur agreement. Qatar’s economic Outlook: In 2010, Qatar was the fastest growing economy in the world - ahead of Singapore and Turkmenistan, with a real GDP growth rate of 19.40 percent. Since 2008, Qatar has been consistently ranked among the top three fastest growing economies in the world. Analysts believe Qatar will continue its double-digit growth trend for the next few years on the back of rising oil and natural gas prices. Qatars oil and natural gas industries account for 50 percent of GDP, 85 percent of export earnings and 70 percent of the government›s revenue. According to 2010 statistics, Qatar produced 76.98 billion cubic metres of natural gas and an average of 1.213 million barrels of oil per day. Prior to Qatar’s discovery of oil in 1940, the country›s economy was primarily focused on fishing and pearl diving. During World War II oil exploration in Qatar was temporarily discontinued. Then in 1949 oil exportation started again and its discovery in Qatar transformed it’s dormant society and economy into a thriving marketplace. Despite a period of rapid growth between the ‹50s and ‹70s, Qatar’s reliance on oil meant it›s economy faced a downturn during the 1980s to mid-1990s due to falling oil prices and reduced oil earnings. Qatar’s economy eventually recovered during the late 1990s, and has since boomed. Qatar’s Natural Gas Qatar’s oil reserves are expected to run dry by 2023 according to estimates of its current rate of production. Consequently, the Qatari government has diverted its focus and resources to the production of natural gas. At present, Qatar possesses 25.47 trillion cubic metres of natural gas in its proven reserves, which amounts to 15 percent of the world’s total reserves. Qatar has the third largest proven natural gas reserves in the world behind Russia and Iran. Increased Liquefied Natural Gas (LNG) production in particular has driven Qatar’s recent rapid economic growth. With massive expansion projects still in the pipeline, Qatar’s LNG production is expected to grow exponentially once the projects are completed. Despite already being the world’s largest LNG exporter,

Qatar also aims to double their current output of LNG by the end of 2011. Japan›s 2011 earthquake and tsunami disaster is also likely to increase Qatar’s LNG exports. As Qatar’s largest export partner, Japan consumes more than 25 percent of Qatar’s total LNG output. With reduced capabilities of Japan›s nuclear power plants, the country will most likely turn to Qatar for their energy requirements as Japan recovers from the catastrophe. Qatar’s Economic Diversification Qatar’s natural gas industry is an important element to their national vision for economic diversification. The economic downturn that Qatar faced during the ‹80s to mid ‹90s exposed the country›s overdependence on the oil industry. Since then, Qatar intends to reduce it›s reliance on oil through a three-fold process: • Maximise the potential of its natural gas industry while producing a trickle-down effect, • where core competencies and competitive advantages gained from oil and natural gas industries can be transferred into other industries. • Expand the service sector, particularly finance and tourism. The Qatar Financial Centre established in 2005 provides a world class financial and business centre for international financial service institutions and major multi-national corporations. Qatar›s successful bid to host the 2022 Football World Cup has also increased Qatar’s global profile and bring an influx of tourists to the country during the event. Qatar Industry Sectors The industrial sector remains Qatar’s key economic driver, 78.8 percent of Qatar’s GDP in 2010 was derived from the industry sector, while services and agriculture sectors contributed 21.1 percent and 0.1 percent to GDP respectively. Qatar’s rapid economic growth is led by its oil and gas industry, as well as other industries such as petrochemicals, steel and fertilisers. The country has maintained positive growth across all its industries. Industries Qatar (IQ) is the Middle East’s second largest chemical producer behind Saudi Basic Industries Organisations. The organisation has also invested in several expansion projects owing to annual profits of (estimated) US$2 billion. Qatar had the world’s fastest industrial production growth rate in 2010, rising by 27.1 percent from the previous year. This followed double-digit growth trends from the past two years.

Qatar Export, Import & Trade Qatar’s main exports are derived from the industrial sector. In 2010, Qatar’s total exports were valued at US$57.82 billion; LNG, petroleum products, fertilisers and steel are Qatar’s key export commodities. Japan was Qatar’s largest export partner, making up 34.68 percent of Qatar’s total exports, followed by South Korea (22.4 percent), Singapore (10.3 percent) and India (4.86 percent). Qatar operates with a trade surplus, however much of its revenues earned from exports are reinvested into imports that would help sustain Qatar’s rapidly growing economy. This includes machinery and transport equipment, food, and chemicals. The value of Qatar’s imports in 2010 was US$23.38 billion, with 14.43 percent of the imports coming from the US, 8.34 percent from Italy, 8.33 percent from South Korea, and 8.04 percent from Japan.

and urban developments have been built around major oil refineries and seaports. The principality of Mesaieed for example, contains Mesaieed Industrial City, which houses family accommodation as well as the main offices of Qatar Petroleum, Qatar Fertiliser Company, Qatar Steel, Qatar Petrochemical Company, Qatar Vinyl Company, Qatar Chemicals Company, and Qatar Aluminium. Among the 1.7 million people currently residing in Qatar, it›s estimated nearly threequarters are foreign nationals with temporary residency status. Foreign nationals also represented a large majority of Qatar’s 1.202 million labour force. According to a 2008 report by Qatar’s General Secretariat for Developmental Planning, 93 percent of the labour force were NonQataris.

Qatar Economic Structure Qatar’s economic success contradicts its physical size. The smallest member of OPEC, both in land area and population, Qatar is also the third smallest state in the Middle East, behind Bahrain and Lebanon. Located in the Persian Gulf, Qatar is a peninsula that shares its border with Saudi Arabia. Its capital, Doha, is situated in the east on the Persian Gulf and is home to 80 percent of Qatar’s population. The Salwa International Highway links Doha to Saudi Arabia and the upcoming Bahrain-Qatar Friendship Causeway will also facilitate transport between two of the largest financial centres in the Middle East. As part of its economic planning, much of Qatar’s major industrial

“As part of its economic planning, much of Qatar’s major industrial and urban developments have been built around major oil refineries and seaports.”

interviewoneonone

THE POWER OF SOCIAL ENTREPRENEURSHIP Founded in 1980, Ashoka has steadily built a reputation for fostering citizen-led innovation focused on social change. The organization helped originate the concept of social entrepreneurship, working outside of the government and business sectors to find sustainable solutions for societal needs. Ashokaâ&#x20AC;&#x2122;s efforts at launching leaders in social entrepreneurship began in Latin America, Africa, Asia, and Central Europe, and have recently expanded to Western Europe, East Asia, and the Middle East. A precursor t? Web-enabled crowdsourcing tools like Kickstarter and Quirky, Ashoka is actively engaged in finding and nurturing young innovators.

BILL DRAYTON ASHOKA CHAIRMAN 32

its Youth Social Entrepreneurship Competition culminated at last year’s Techonomy conference, with 19-year-old Eden Full winning the top prize for her SunSaluter solar panel technology. Techonomy’s Adam Ludwig spoke with Ashoka CEO Bill Drayton about the inspirations and aims that guide his work, and the role he sees for technology to accelerate global problem solving.

people in the remotest corner of the world can decide to bring change to their community, have access to all the ideas and tools available in the world, and contribute to experimentation and successful change making. Ashoka’s Changemakers pioneered open-source problem solving for the many interests involved in change making.

What led you to start Ashoka? In 1962, when I was 19, I visited India. With introductions from people involved in the U.S. civil rights movement, I was able to visit with several of the leading Gandhians there. The hundred-toone difference in average per capita income between America and India at the time was a stark reality for the people who became my friends there. Action was essential, and given the magnitude of the problem, it had to be significant. But as a college sophomore, I had little wealth or power. I knew that finding an approach with maximum leverage was critical.That’s when I started to realize that the most powerful force in the world is a big idea—if it is in the hands of a great entrepreneur. It’s how a very small investment can make a huge difference. Entrepreneurs almost always have to step out of existing institutions that embody old ways of doing things to build their vision. They need space to demonstrate and refine their ideas, to build an organization, and to figure out how to explain what they’re doing in ways that will cause others to follow them. A very modest stipend allows budding entrepreneurs to quit their jobs and work full-time to refine and launch their vision. Ashoka began with this concept and has evolved into a community of mutual help and collaboration that multiplies the individual entrepreneur’s confidence and strength. It’s an idea that allows us to change the world with extremely modest resources.

How would you assess the impact of the Ashoka Fellows program? Ashoka has 3,000 leading social entrepreneurs, and over half have changed national policy within five years of their selection and launch. Ashoka’s Corporate Executive Board, in last year’s report, found that within the same five-year period, three-quarters of Fellows had changed the pattern in their field at a national level. In these evaluations, the Fellows overwhelmingly described Ashoka’s role as being critical to their success. One example of an Ashoka fellow bringing about change specific to technology is Fabio Rosa, whose program in Brazil cut rural electrification costs 7090%- and brought electricity to vast rural areas of that country.

How have you been able to make this approach successful? We’ve learned how to help hundreds of the world’s leading social entrepreneurs, working on the same problem across the globe, to collaborate. This is a giant step beyond solo practitioner entrepreneurship, and has never been done on this scale in any sector. We look across the work of hundreds of entrepreneurs in a field to identify cross cutting patterns. The old paradigm for successful growth was to master the information and the rules. In a static society that was adequate. But in a world defined by rapid and interconnected change, it is woefully inadequate. The faster things change, the less relevant the rules become. How is Ashoka engaging the influence of rapidly accelerating technology in its work with budding social entrepreneurs? Technology is extraordinarily empowering for Ashoka. Every successful organization has to make the transition from a world defined primarily by repetition to one primarily defined by change. This is the biggest transformation in the structure of how humans work together since the Agricultural Revolution. Organizations must shift away from repetitive-function hierarchies with rules and enforcement and walls. Instead, we must migrate rapidly to becoming a global “team of teams” that comes together in whatever combination necessary to add the greatest value to the changes underway. Building this team would be almost impossible without the web and its associated communications tools. Three

I know you have thought a lot about unemployment and have a specific idea for how it could be reduced in the US. Can you explain? One of the simplest ways would be to eliminate payroll taxes, which would lower the cost of labor in the US by roughly 17 percent and offset that loss of revenues with taxes on materials, energy, pollution, and land. The combined effect of these two actions would change the relative price of labor and goods by roughly 30 percent. The best estimate is that doing so would, over the course of a capital cycle, create roughly 40 million new jobs. It would do so without increasing the debt, picking winners and losers, creating a bureaucracy, delay, or corruption. Both the end and the means are acceptable across the political spectrum. Conservative economists point out that no one actually sat down and decided to increase payroll taxes from one percent to 40 percent of federal revenues. This tax-switching program would merely undo an accidental and deleterious price signal. It would be a huge political win. Older people, people with disabilities, women, young people, those who have been institutionalized, minorities, and immigrants would benefit enormously. (For more on this idea, see www. getamericaworking.org.) For half a dozen years, the world has been moving towards recognizing this needed new framework. A study of OECD countries shows that those with payroll taxes over 40% versus those with payroll taxes under 30 have an 11.5 percent smaller share of their population working. Most European governments and increasingly governments in other parts of the world are cutting payroll taxes. The IMF recommends it. Although the U.S. continues to increase payroll taxes, both parties at different times have advocated payroll tax reductions. The citizen sector and its social-entrepreneurial cutting edge are going to be key here. Even before tackling this core problem, the citizen sector is growing jobs at two and a half to three times the rate of the rest of the economy in advanced countries. That is because it is growing productivity and scale, and now globalization, at a far faster rate than the rest of the economy.

Globalperspectives

AN INTERVIEW WITH THE HON. TONY BLAIR

OUTLOOK ON FOREIGN POLICY Tony Blair is the Representative of the Quartet – U.S., Russia, E.U., and U.N. – to the Middle East, through which he is focused on working with the Palestinian Authority to prepare the institutions and groundwork for statehood, as part of the international community’s effort to achieve Israeli-Palestinian peace. The goal of the Tony Blair Faith Foundation is to promote respect and understanding among major religions and to make the case for religions as a force for good, demonstrated by organizing interfaith education and social action projects to overcome global poverty and conflict. Tony Blair’s Africa Governance Initiative helps some of Africa’s most visionary leaders deliver the change their people need to relieve poverty.

Given the recent developments in the Middle East, are you optimistic about positive movement in this area? There has to be movement, because people have been waiting a long time to get this issue resolved. There is an agreement, more or less, that we need two states for two peoples. We should be able to make progress on this and it’s desperately necessary, because the Middle East as a whole is in turmoil. It’s important that the Israeli-Palestinian issue doesn’t get used in that turmoil. Instead, we need to recognize that this embodies this small bit of land where two peoples are living intermingled side by side and that we need to create the circumstances in which they can do so peacefully. The important thing is to get negotiation back on track as quickly as possible, which we’re working on right now, and to combine that with real change on the ground that improves the lives of the Palestinians, lifts the weight of occupation from them, and gives Israel the genuine sense that its security concerns are being taken into account. You’ve been clear that political leadership is key to driving much of what is taking place in the Middle East, especially around conflict resolution. But how tough is it to find that leadership when there is such uncertainty? The great challenge for leaders is to make tough decisions in circumstances where the consequences are unpredictable. This is why leadership is such a challenging business right now. But one of the things that you learn about leadership is that inaction is also a decision; it’s just a decision not to act and it too has consequences, and those consequences are often more predictable. If we do not move this situation forward with the Israelis and Palestinians at the moment, it will move back, and the consequences of that will be greater tension and violence in the region. We’ve come a long way since 2000 in terms of a more peaceful situation on the ground – we don’t want to go back there. What is your vision for your charity, the Africa Governance Initiative?

The Africa Governance Initiative works alongside the governments of African countries to build the capacity to govern effectively. The great challenge for Africa today is not aid although that is important, particularly in areas like combatting killer diseases – but governance. It’s not just creating transparent and honest government; it’s also about effective government the challenge for governments today is efficacy. Tony Blair visits Rokupa Government Hospital in Freetown, Sierra Leone. So we help governments in Africa prioritize, deliver, and track the performance of the various projects they’re doing. The important thing for all these governments is to create the circumstances in which basic areas like energy, power, agriculture, and infrastructure are working at a level where people see the benefit, which gives them greater faith in politics. Africa has an enormous opportunity now with the development of China, India, and other emerging market countries, which desperately need the resources that Africa has. Africa can develop those resources, but how they do so will crucially effect whether those countries do well or not. What was your vision in creating the Faith Foundation and what are you trying to accomplish through those efforts? The biggest challenge we have toward peace and security in the 21st century is not fundamental clashes of political ideology but fundamental clashes of cultural or religious ideology. If you look not just at what is happening in the Middle East but across the world, there are groups of people who are using religion to further extremism and are creating huge political, cultural, and religious divides. Even in Europe, you now have political parties starting up all over the place that are based on a view that the identity of Europe is under threat; some of those parties are openly Islamaphobic – that is a huge problem. The trouble is that politicians want to say this problem is a political problem, but these people think it is about religion, so if you don’t deal with the religious dimension, you’re not dealing with the problem.

Our foundation is about practical interfaith engagement. We have a schools program that, through the Internet and videoconferencing, provides a secure online facility for exchanges among schools of different faiths across the world. We’re operating in 17 different countries. We have strong support from U.S. Secretary of Education Arne Duncan and we have signed agreements with several governments around the world. We hope to take the idea that, at a very early age, we should educate young people towards religious harmony and interfaith understanding rather than using their religion as a badge of identity in opposition to others. We also have a university program that is focused on research and developing the academic study of religion and its place in the modern world, and that is taking place in about nine universities around the world, starting with Yale in the U.S. We now have an action program that is about using the faith infrastructure in Africa to combat killer diseases, like malaria. So in Sierra Leone, we’re training priests and imams, as well as community workers, to use the mosque or church in the villages, which often won’t have a health clinic or hospital, to train people how to distribute the materials for fighting malaria and to show people how to use it, as well as to encourage them to continue to use it. In the three months that we have been running the program in Sierra Leone, we have reached about a quarter million people. You can mark the difference, because if people use the bed nets and the drugs they’re given, they can significantly reduce death from malaria. So it’s a program based on the notion that we need to encourage harmony among the main faiths and it provides a practical set of programs to do that. In terms of the efforts you and The Climate Group have had on an ambitious post-2012 climate change agreement, is the support there and the dialogue around climate change the right one? Tony Blair talks to female students of The Winchester School, Dubai about interfaith understanding The objective with our climate change plan is to take the commitments countries are prepared to make individually and put them together in a global agreement, and to send a clear direction to their various economies that they’re moving in a green direction. You have to make business a partner in this. And the solution to this will come from science and technology. In countries that are industrializing, like China and India, the people want to consume just as the West has consumed. We have to invent the scientific and technological advancements that will allow us to consume better. Where there are programs in energy efficiency that are effective, we should be implementing them; in those countries where deforestation is rampant, we should be encouraging them to choose a different means of securing their livelihood. So the fight against climate change is to get a global agreement together. It doesn’t have to be perfect, but it will send a strong signal to the international business community that this is the direction we’re going

in and will encourage the development of science and technology, which is key. Is it sometimes tough to be patient with all the challenges an agreement like this has faced? It can be frustrating, but what I’m trying to do in each of these areas is to demonstrate that there is a different way of looking at things that would be more effective and I’m trying to mobilize governments behind that different view. I’m under no illusion that I can single-handedly change the situations. But what I can do is demonstrate, through my philanthropic work, a new idea or a different way of doing something. So in the Middle East, for example, my theory is that you have to build this concept of peace from the bottom up through the economy, through what happens on the ground, as well as a negotiation top down. In Africa, it’s about showing that if we provide the infrastructure of effective government and decision-making, we will need so much less aid because the countries will then have the potential for wealth on their own. In respect to interfaith, it’s about encouraging people at an early age to see their faith as theirs but to also see that there is a faith community in which many different faiths are involved, and showing governments that this is the right way to go so people can start driving these programs throughout their education systems. Likewise, with climate change, my theory is, you have to make business a partner in this, not the enemy. So in each of these situations, it can be very frustrating, but I’m trying to show that, conceptually, we can do this differently and better. In government, you were known as somebody who got things done. Many today suggest there is a lack of that kind of leadership. What makes a successful leader today and how were you able to bring people together and make such an impact? Leadership has never been tougher than it is now, particularly with the economic and financial crisis we have faced over these past few years. But leadership involves two things: understanding the world is changing fast and understanding that we have to change with it. There is no leader today who is not an agent of change; and leaders need to understand that because change is so difficult. When you try to institute change, you get resistance, and sometimes the things you suggest will not be popular, at first. But the essence of leadership is taking responsibility for engaging in that process even though you know you’re going to be pushed back and it’s going to be tough. Leadership is about understanding that we live in a world whose defining characteristic is change and it’s being prepared to make the difficult decisions to translate that change into reality.

leadershipseries

Ian Goldin is the Director of the Oxford Martin School, University of Oxford, and professorial fellow at Balliol College, Oxford. He has served as vice president of the World Bank and advisor to President Nelson Mandela. His many books include Globalization for Development.

RETHINKING MIGRATION By Ian Goldin We live in a dynamic age of global integration, where the reconnection and mixture of the world’s people is challenging dominant norms and practices in many societies. Disintegration and integration are simultaneous and interwoven. Cultural codes adapt. New economies emerge. Innovation prospers. Social institutions struggle to adapt.

across their borders. Migrants are uncommon people, and they often move several times in search of opportunity and safety. Viewing crossborder movement simply in terms of immigration limits a broader appreciation of how networks and economies function in an increasingly integrated world.

To many, the challenges associated with migration are characteristic of our age of postmodernism, multiculturalism, and aspiring cosmopolitanism. Some are nostalgic for an illusory past when people had more in common. Outsiders have always encountered opposition from their adoptive societies. Nevertheless, the direction of history points to the persistent expansion in the boundaries of community. Our cultural and political frontiers have gradually receded.

I question the received wisdom that an increase in the flow of international migrants is undesirable. The rapidly growing field of multidisciplinary scholarship on the dynamics, flows, and impacts of migration makes the case that current ad hoc regulations are poorly suited for a world economy that thrives on openness, diversity, innovation, and exchange.

In the current period, “migration” is defined as cross-border movement, and it has come to be seen as something to be managed—a cost to be minimized rather than an opportunity to be embraced. My view is that it is a key driver of human and economic development and that our future will be strongly influenced by policies regarding migration. How governments craft and coordinate migration policy will determine whether our collective future is defined by a more open and cosmopolitan global society or one that is unequal, partitioned, and less prosperous. Public debates about migration are limited by a lack of perspective of its historical role, contemporary impacts, and future prospects. Let’s shift discussion on international mobility away from narrow national-level immigration debates, toward a more global view of migration. The terms “immigration” and “immigrant” can obscure more than they reveal, because they imply that people move once, permanently—from outside the country to inside when migration for the most part is temporary, repeated, or circular. This perspective also ignores the dynamism of human movement: countries that accept large numbers of migrants also typically send similarly large numbers

Five Principles We propose five key principles that should guide engagement with migrants and migration by governments and international organizations: 1. Extend transnational rights. 2. Promote social and economic advancement for migrants. 3. Widen the umbrella of legal migration. 4. Combat xenophobia and migrant abuse. 5. Improve data collection. A global migration agenda need not be advanced only by official agencies. It should also include businesses, labor unions, diaspora groups, religious communities, and civil society groups. These objectives reiterate recommendations made elsewhere, and there is particular resonance with some of the proposals made by the Global Commission on International Migration (GCIM). Together, they touch on policy areas that require reform in the medium term if the ideal of freer movement will be achievable and sustainable in the long term.

INFOCUS

OMAN IN FOCUS Qaboos was born in Salalah in Oman’s southern province of Dhofar on 18 November 1940, the only son of Sultan Sa’id bin Taymur (d. 1972) and Taymur’s second wife Mayzun bint Ahmad alMa’ashani (d. late 1990s), a Qara woman of the Bayt Ma’ashani clan of Dhofar. Qaboos’ early life was spent in the royal compound in Salalah, where he received private tutoring. In 1958 he went to England for further private schooling before entering the Royal Military Academy at Sandhurst in September 1960. Upon graduating from Sandhurst in August 1962, Qaboos served a one-year tour of duty with the British army in Germany. His education was completed with a private course in local government in England and then a world tour before returning to Oman in late 1964.

Qaboos is credited with the Omani Renaissance: the political, economic, and cultural rebirth of the country in the late twentieth century following the long period of political repression, instability and economic depression under his father, Sultan Sa’id bin Taymur Al Bu Sa’id (1932–1970). Upon his return to Salalah, Qaboos remained isolated from government affairs, except for occasional briefings by Sa’id’s mostly foreign personal advisors, and devoted his time to the study of Islamic law and Omani history. Personal relationships were limited to carefully selected lace officials, and efforts by Sultan Sa’id’s advisors to include Qaboos in the affairs of state were rebuffed. Qaboos did use his limited contacts to express his displeasure with Oman’s political and economic conditions. Oman’s strong Economic Outlook: The overall outlook for Oman remains positive in 2013 despite heightened downside risks to global recovery.Gross domestic product grew a real 5.5 percent in 2012, according to an International Monetary Fund estimate, after a 5.0 percent rise in 2010. However, Oman may be adversely affected if oil prices fall because of worsening global conditions, the central bank said. In addition, the private sector in the sultanate has yet to regain confidence fully, it said. “Profits earned by the private sector continue to remain sluggish. This is holding back private investment in Oman despite large government expenditure.” Oman, which gets about three-quarters of its government revenue from crude oil exports, faced strikes in the oil sector in May and June. The price of Brent crude plunged $40 to as low as $88 per barrel between March and June but has since recovered to around $98. Oman, where oil and gas account for about half of GDP, sold its crude at an average $103 per barrel in 2012. “Going forward, the major policy challenge before the CBO is to strike a balance between sustained growth momentum and price stability in Oman,” the report said. “Reflecting global slowdown, the overall

outlook on domestic prices remained benign in the more recent period.” Annual inflation in the desert country, which has to import essential commodities, eased to a two-year low of 3.0 percent in April from a peak of 5.3 percent in August 2011. Oman lacks a fully independent monetary policy because its rial currency is pegged to the US dollar. Its central bank has been keeping a loose policy stance since early 2009 as inflation slowed sharply from doubledigit rates seen in 2008. “There is scope for the CBO and the government to pursue accommodative monetary and fiscal policies in the rest of 2012 without jeopardising macroeconomic stability of Oman,” it added. The interest rate which it uses to drain excess liquidity from the market has stood at around 0.08 percent at its weekly auctions of deposit certificates. «There may be pressure on the exchange rate if the inflation rate differential between Oman and the US widens further,» the central bank said. Despite a budgeted fiscal deficit of OR1.2bn ($3.1bn) in 2012, the government balance may turn out to be in surplus in 2012 given stillrobust oil prices, the report said. Any shortfall is expected to be financed partly by drawing from reserves, the surplus from the previous year, and issuance of government development bonds, it said. The central bank also said unemployment in Oman was «the single most important problem the country currently faces, but did not provide figures. The IMF said in December that a 2010 census had put the unemployment rate among Omanis at 24.4 percent, although the high number may include many who are not truly looking for work. Omanis accounted for only 14 percent of nearly 1.3 million private sector employees in 2011, the central bank report showed.

report

OMAN’S OIL SECTOR Oman is famed for its striking scenery born of its dramatic geology, but its subsurface composition has also made it a challenging and exciting hydrocarbon environment too. The country has achieved remarkable success with its enhanced oil recovery programmes, and can lay claim to be one of, if not the only hydrocarbon landscape where all three major enhanced production techniques are in execution, and the results have been astounding. Under the stewardship of His Eminence Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas of the Sultanate of Oman, who took on his current portfolio in 1997, the country has reversed field decline and is actually producing 17% more oil than it was in 2007. An achievement made all the more remarkable when you consider production fell 27% between 2001 and 2009. “Oman has a difficult geology, a difficult terrain, both on the surface and subsurface. It’s intellectually very stimulating and exciting. Financially, its very expensive and technically difficult too,” says Al Rumhy. Just as exciting as the oil developments in Oman is its gas story. Looking back on the journey which has made Oman one of the top ten biggest exporters of LNG in the world, HE. Al Rumhy reflects that fortuitous timing and excellent project execution turned a once benign resource into such an important revenue stream for the Sultanate. “The gas industry is very complicated, and as times have changed so too has the outlook for gas. When we discovered gas over and above material volumes in the early 1990s the main question on everybody’s lips was: How can we monetize that resource for the good of the country?” he says.

The conclusion reached was for the Government of Oman to take a majority stake in a new company, Oman LNG, and for partners Total and Shell (5.54% and 30% respectively) as lead upstream shareholders, based on long-term sales agreements with three key Asian buyers. “At that stage the thinking was to go for LNG, and I think that was the right decision at that juncture. We have been very successful, and it was partly down to luck that we discovered gas when we did in the early 90s,” says the Minister. “We began exporting into the LNG world at the end of the century, and ever since the LNG market has been very healthy and probably exceeded, our expectations at that time.” HE Al Rumhy observes that the swift decision-making process enabled construction to begin in the late 90s, which was good timing project-wise, predating the regional mega-project scramble of the 2000s. “We managed to construct the two LNG trains of OLNG, and all that goes with it, including the pipelines and infrastructure at a good time. I really believe the timing of the whole LNG business in Oman came at the right time in our history and since then we’ve never looked back.” The diversification of industries in Oman, whether on the LNG side, the petrochemical side and steel clusters shows the importance attached to gas. Gas-associated industries have contributed to Omani employment, and current estimates suggest LNG and the domestic gasbased industries, including the Oman Refineries & Petroleum Company, which OLNG supports, contribute over 15% of Sultanate’s overall revenue.

leadershipseries

A TIME FOR HEROES By Adam Lent “We’re not putting this back in the bottle [...] The open world is bringing empowerment and freedom.” The Canadian businessman and writer Don Tapscott is optimistic about digital technology›s potential and, in particular, the transformative possibilities it offers to the people he calls the Net Geners. Tapscott has carried out large-scale studies on the attributes of a cohort that is also known as Generation Y or the Millennials: roughly speaking, those people who are now in their 20s and 30s and have grown up in the digital age. He concludes that they tend to place a high premium on self-reliance and education, are broadly tolerant of difference, are open to collaboration and understand the need for civic responsibility. This echoes the work of US historians William Strauss and Neil Howe, who have identified generational archetypes – prophet, nomad, hero and artist – that repeat themselves every four generations. For Strauss and Howe, the Millennials belong to a hero generation: they experience proactive – rather than reactive – parenting, come of age at a time of societal shocks and, by responding to these, evolve into ‹young adults›. They become institutionally powerful in mid-life, focused on the external world and finding solutions to contemporary challenges. Some argue that generational analyses of this sort are limited or that these accounts are distinctly North American. There is no broad consensus on the particular characteristics of the Millennials, nor does everyone agree with the positive reading of newer technologies. Indeed, this cohort has been variously labelled narcissistic, cynical, hedonistic and brand obsessed. Some see the impact of social media and a searchengine culture as alienating and distracting, reducing our capacity to think deeply about the world. What does seem clear is that recent decades have seen a technologyenabled shift akin to the revolutions wrought by mass production in the first half of the 20th century and by flexible production in the second half. A world of innovation and enterprise is emerging, thanks to a new openness driven initially by the spread of Web 2.0 and, increasingly, by rising consumer expectations of ever-greater control over the products and services they purchase. In the new business paradigm, companies are learning that they cannot create productivity, market share and innovation by keeping a fierce hold on processes and information. Only by giving customers, citizens and external experts access to these processes, and allowing them to participate in their design, can organisations match the speed and complexity of their sphere of innovation.

How else do we explain the spiralling interest in 3D printing technology, which gives consumers the power to manufacture goods using opensource software? Or the fact that one of the most potent sources of information in the world is an online, freely available encyclopedia written by its users? This transformation thrives on the resourcefulness, the willingness to engage and the spirit of entrepreneurial collaboration of the millions of people who were once regarded as passive customers or ignorant service users. It is in these very qualities that we find the second reason for optimism. What begins to emerge is a picture of a generation that is more comfortable with taking risks and whose appetite for enterprise is both driven and hampered by economic circumstance. Through research, engagement and practical innovation, the RSA›s project seeks to understand how we can harness and enhance this promise and capabilities and the contribution they will make to pulling us out of the current crisis. As Tapscott argues, unless we understand the Net Geners, we cannot begin to understand the future or how they can shape our world.

“Now, more than ever, we need young people to use their collaborative and technological skills to overcome economic challenges and help shape a more prosperous future.”

globalperspectives

EFFECTIVE LEADERSHIP DONALD J. TRUMP

CHAIRMAN AND PRESIDENT, THE TRUMP ORGANIZATION

Donald Trump is the author of 10 best-selling books, including The Art of the Deal, Never Give Up, The Art of the Comeback, How to Get Rich, Think Like a Billionaire, Trump 101: The Way to Success, Why We Want You to be Rich, and The America We Deserve. He serves on the board of the Police Athletic League, on the advisory boards of Lenox Hill Hospital and United Cerebral Palsy, as Chairman of the Donald J. Trump Foundation, and as Co-Chairman of the New York Vietnam Veterans Memorial Fund. Trump is also the Co-Producer of The Apprentice, and in January 2007, he received a star on the Hollywood Walk of Fame. He is a graduate of the Wharton School of the University of Pennsylvania. Company Brief The Trump Organization (www.trump.com) encompasses global real estate development and global licensing, sales and marketing, property management, golf course development, entertainment, entertainment and product licensing, and brand development. Holdings include the Trump International Hotel & Tower in New York, Chicago and Toronto, Trump SoHo, Trump World Tower at the United Nations Plaza, Trump Park Avenue and Trump International Hotel Las Vegas. Headquartered in Trump Tower in New York, the Trump Organization also owns twelve golf courses, with a links course opening in Scotland this spring. A recent acquisition is the iconic Doral Hotel & Country Club in Miami, which includes four championship golf courses. Their portfolio of golf courses is international and has won many accolades. Additionally, the organization owns the historic Mar-a-Lago Club in Palm Beach. The mega hit reality show, The Apprentice and The Celebrity Apprentice, is now in its twelfth season and continues to receive high ratings. The Trump Organization also owns the Miss Universe Pageant and Trump Model Management, and the Donald J. Trump Signature Collection of tailored clothing is featured at Macy’s. In February of 2012, the Trump Organization was selected as the developer of the famous Old Post Office Building in Washington, D.C.. There is much debate about U.S. competitiveness in the global economy and the future strength of America. You address many of the major issues the U.S. is facing in your new book, Time To Get Tough. Would you highlight your reason for writing the book and the key messages that you wanted to convey? I love America and to see what’s happening to our country is disturbing. We cannot afford four more years of this mess. Obama does not know what he’s doing and he’s been a huge disappointment. As a businessman, certain things are very clear to me and by writing this book I could make them clear to the public. Key messages include the problem of China taking advantage of us on a large scale, OPEC doing the same thing, and Obama doing nothing about it. We are in an economic disaster and there are some things that can be done to help the situation and yet nothing is being done. We also need a tax system that is fair and smart – one that encourages growth, savings, and investment. It’s time to stop punishing hard work and entrepreneurship. How concerned are you about the future position of the U.S. as a world leader? Very concerned. We are perceived as weak and not too smart, and other countries know we’re in big trouble if we don’t get back on the right track. We have huge debts and our leadership is weak. What needs to be done to spur entrepreneurship in the U.S. and with all of the regulations today, is it more challenging to build a company and to compete globally?

Entrepreneurs create jobs and their ability to do so has been hampered. We need an international deal maker in office and Obama is not one. It’s tougher to build a company in the U.S. and to take it global as there are too many roadblocks. Obama’s background in business is not strong and very obvious mistakes have been made. Considering the economy, he has not been a big help. There are great concerns about jobs in the U.S. How can we make an impact on unemployment and what advice would you give to young people entering the job market today? The Keystone Pipeline would create thousands of jobs, for one thing. Why isn’t that going through? I would remind young people that there are always opportunities and to remain positive. When I started as a developer in New York City, everyone said it was a terrible time for real estate and everyone was negative. I went ahead anyway because it’s what I wanted to do and I found opportunities. It’s not easy but you have to be tenacious. You speak often about a lack of leadership in Washington today. What makes an effective leader and are they needed to bring America back strongly? Yes, I speak about it often because it is so obvious. An effective leader needs to know how to negotiate and a certain level of intelligence is required. The President needs to be smart enough to recognize the national security threat China poses in the new frontier of cyber warfare. He has to know what OPEC is doing, to see the benefits of the Keystone Pipeline, and not treat the Chinese like they are royalty. His budget funds the “Arab Spring” with $800 million and the Muslim Brotherhood in Egypt with $1.3 billion in military aid. A day after he released a trillion dollar budget deficit, he hosted China’s future leader Vice President Jinping at the Pentagon with a full honor ceremony. His choices don’t make sense. Those leaders are out there, but they will be walking into a mess. A strong leader and someone with business experience and international knowledge is a must. He or she must have a very strong agenda and stick to it. There is always a buzz about what you are going to do, whether it relates to politics, business, or television. How do you balance all of the areas in which you are involved and what gives you the most fulfillment? Balancing the three areas gives me fulfillment. I greatly enjoy all of them, so the balance comes naturally. Of course, real estate was my first love and I have a golf course opening in Scotland this July, which has been a labor of love and is spectacular. It’s been a long haul getting it done, considering I spent five years looking for the right place, which I found in Aberdeen, Scotland. My mother is from Scotland so there’s a connection there that goes beyond the sport or the business.

highprofileinterview

A CONVERSATION WITH Sheikh Saleh Abdullah Kamel is a Saudi businessman, chairman and founder of the Dallah al Baraka Group (DBG). Chairman of ABG and he is also the chairman of the General Council for Islamic Banks. He is estimated to be worth about $5.3 billion, ranking number 12 on Arabian Business list of richest Arabs 2008. Most of Kamel’s business work focus on coded TV channels, trade and civil services. Under the current economic climate, Sheikh Saleh Kamel did not withdraw or pull back but on the contrary, he is still exploring new business opportunities and investing heavily in the banking idustry especially that the Islamic banking industry needs this investment at a time where the price of oil has been rising and the world is on the verge of economic fall down. It seems that almost everything is falling down into bits and pieces.

“When I started my career in the trading industry, my mother used to constantly remind me of the values of Islam.”

SHEIKH SALEH ABDULLAH KAMEL

CHAIRMAN AND FOUNDER OF THE DALLAH AL BARAKA GROUP (DBG)

Sheikh Saleh Kamel, How did you build your business empire and what are the reasons for your outstanding success? Sheikh Kamel: Well, let me start by thanking you for giving me the opportunity to host me in your prestigious “think tank” – Business Life. Now, with regard to your question, and for the benefit of your respected readers, let me begin by stating that at the outset any venture requires the blessings of Allah the Almighty. Every success depends on the degree of clarity of the Organizational Vision, sound and equitable management system, and finally the overall organizational governance and control. When I started my career in the trading industry, my mother used to constantly remind me of the values of Islam and would speak of usury as against our values. She would always speak of savings and transactions the Islamic way. This greatly influenced me and I did my first contract in the late 60s using mudharaba and musharaka modes of finance with a conventional bank. This sowed the seeds that were blessed and from which, the tree of Al Baraka grew and expanded. I do not wish to say I am successful, because I believe that I am as yet to realise my dream of having true Islamic economic principles. It is upon this that the entire resources of society should be mobilized - according to the principles of Shari’a – and should be utilized for the benefit of society, again according to the principles of Shari’a. Shari’a focuses on the equitable distribution of wealth and rewards efforts, for the welfare of the entire society. What are your comments on Islamic Banking Performance in the Middle East and in the West? Sheikh Kamel: As you are aware, Islamic Banking has grown in size and numbers in the 80s and 90s and is acclaimed to be one of the most powerful sectors of the banking market in the world today. This is because, markets the world over have shown a huge appetite for Shari’a compliant transactions and investment products even though, until recently many people did not really understand such types of transactions. The growth in this segment in the financial industry presented a new opportunity for financial institutions located n the Middle East to export their business outside of the region to serve the large global Muslim population in other countries. I wish to reiterate that the good performance and growth is the effect of understanding and knowledge about Shari’a compliant finance, not only among individuals and customers, but also within central banks, financial institutions and professional bodies. Today, there is a much deeper understanding about these transactions; so people have greater faith in them. Customers across the globe have started to show interest in and their greater

acceptance has resulted in Islamic financial institutions being recognised as fully functional counterparts of conventional institutions. Furthermore, a number of Islamic investments have outperformed conventional investments making conventional banks becoming keen to offer Shari’a based products & services worldwide.

crash of the stock exchange there and also after the 2nd Gulf war. After each and every unrest, we always come back more stronger than before… and this is definitely attributed to the accumulative wisdom of our business elites and political leaders in managing the natural resources gifted to us by Allah, Subanahu watallaa.

Do you think this growth is related to the resurgence of Islamic feeling in the region and therefore vulnerable to the political mood? Sheikh Kamel: No, the sector has been growing for almost three decades now, and is becoming more sophisticated with its products and services offerings. Today, Islamic financial institutions can match most of the products offered by conventional banks in the international markets. Even in Europe, Islamic finance is being seen as something that is open to everyone, not only for Muslims. Clients look for good service at good rates, and for nonMuslims, whether it is Islamic or not, it does not matter. In fact, for many companies, it is attractive to be able to diversify their borrowing activities. For Muslims there is, of course, the added attraction of Shari’a compliance. So I think this growth will continue for some time, and this is why we see most conventional banks in the region opening Shari’a windows or subsidiaries, and some even converting their full operations.

Will there be new Islamic Banks established in Libya, Morocco, Algeria, Tunis and Egypt? Sheikh Kamel: Definitely the answer is yes and as you know, banks are established to meet the financial needs of the societies and as long as these needs exist, the need for banks will exist. I would like to inform you of a good news that I am privileged to have regarding a new bank in Egypt. This bank will be specialised in providing developmental finance and of course in a growing economy like Egypt, the society needs such types of financial institutions. The bank is at an advanced stage of being set up.

Riots and revolutions have hit the MENA region in the past few years. Do you think the region will soon be stabilized? The current turmoil and disturbances definitely has had its impact on the overall economic climate. We have seen fluctuations in the oil prices and other commodities and this will indeed cause a slowdown in the economies of the affected countries and to some extent in the rest of the world. Luckily, until this moment, we have not seen harsh slow down at the global level because of what is going on in the Mena region and Japan. Of course, it is very hard to predict a timeline or volumes or size of the losses so far. We have seen some negative reports and analysis coming from the research centres and rating agencies which I believe, would have caused more damage than the crisis itself. For example, one of the countries which has seen unrest has been downgraded by the rating agencies due to political factors only, with total disregard to the intrinsic strength and the support of the rest of the nations in that country’s region. I am always optimistic about the future as has always been the case in the region. I believe that the region has a lot of resilience and strength and will bounce back again to follow a growth path and a bright future for the rest of the world. We have seen this happening in Dubai most recently and in Kuwait in the 1990 s after the

Sheikh Saleh, does Al Baraka Banking Group have any plans to set up new banks in the above countries? As you know, we have already in Egypt, Tunisia and Algeria, with a strong presence in these three countries. Recently, we had obtained a preliminary approval for operations in Libya, which will as of now be a representative office. Of course we will be waiting for the current unrest to settle down. How were the financial results of the Group? Yes, we have achieved excellent results despite the fact that the year was characterised by great uncertainties for the economies of the industrial world and mixed fortunes for those of the Group’s areas of operations. The economies have been affected in greater or lesser degree by the impact of commodity and hydrocarbon prices and the value of their local currencies on the international exchanges, Al Baraka Banking Group did well to record a 4% increase in operating revenue at US $ 659 million and another year of increased net profit, which grew by 15% to US $193 million. The rise in profitability reflected a 21% growth in Al Baraka Banking Group’s assets, as all major classes of banking assets rose to meet extensive demand from the growing customer base, itself the result of the continuing expansion of the Group network. Most of our subsidiaries extended their branch networks, such that by the end of the year the Group network had expanded by a total of 81 branches, making it around 400 branches in all - our stellar achievements during the year were undoubtedly the acquisition of Emirates Global Islamic Bank to form one of the largest Islamic banks in Pakistan and the opening for business of our new subsidiary in Syria.

This expansion in our representation base across our geographies in turn enabled our subsidiaries to deliver more services and products to their clients, resulting in an increase in our total financings and investments in all major classes. We also maintained progress on our strategy of investing in infrastructure and in strengthening our risk management and operating systems, policies and procedures. Most of the subsidiaries have now completed the transformation to new core banking systems and to achieving Basel II and regulatory compliance milestones, whilst introducing international best practice risk management, AML and Disaster Recovery systems and methodology throughout the group. We were also proud to receive a number of international accolades for our achievements to date – the first “Mediterranean Awards for Global Excellence in Islamic Finance” was awarded at the Malta Islamic Finance Conference, the Hawkamah Union of Arab Banks “Bank Corporate Governance Award” and “Best Regional Bank” at the prestigious Annual Islamic Business & Finance Awards in December. Such tokens of the respect and regard with which we are held by our peers only serve to strengthen our determination and redouble our efforts in our quest for the highest standards in the field of Islamic banking. Unfolding events in a number of countries in the Middle East and North Africa region presage a time of change for many of them. Whilst we cannot know exactly how these events will ultimately impact on the economies of the region nor its business activity in the short term, we nevertheless remain confident that the Group will not be adversely affected in light of its fundamental soundness and financial strength

level, as well as meet the three Shari’a requirements for structuring new products at another level. The three Shari’a requirements for structuring being, - the purpose, the mechanism and the end result that adds value to the wealth or income of the societies in which they are operating in. The fast growth of the Islamic finance sector has clearly thrown up some challenges, not least of which is in human resources, both as financiers and to sit on Sharia boards. What are your views on this? Sheikh Kamel: As you said Islamic Banking has always been growing at a fast rate. But with such rapid growth, you need to build supporting institutions at the industry level. These are needed to address non-core challenges such as R&D and shortage of specialists in Islamic Banking.

Some people say that Islamic banks have not been creative enough in generating new products and have merely repackaged conventional products. Do you think Islamic banking is creatively challenged? Sheikh Kamel: I disagree. In fact, it is the opposite. It is my belief that Islamic Financial Services Industry itself is an innovative initiative. We are more creative than conventional banks. How many innovative products have conventional banks brought to the market in the past 30 years? But Islamic banks are bringing entirely new Shari’a-compliant products into the market which the others now copying. We are the creative ones. But still there are gaps in our product menu. You can never stop putting forward new ideas. Mortgage loans, for example, is one growing area that Islamic banks have yet to fully explore. I am always supporting the view that the Islamic Finance Industry – despite contemporary challenges – is capable of developing initiatives required to adapt to any economic or legal changes. What other areas are under-developed in Islamic finance; Where would you like to see more innovation, sophistication and growth in Islamic financial products and transactions? Sheikh Kamel: Like any other Banking Business, our Industry faces different challenges that need continuous care. At the top of these is the need to expand the current Islamic Financial basket of Products. There is a need for more Islamic Financial Institutions with investment banking focus to develop Islamic Capital markets and to actively participate in project finance type of activities. The industry needs to expand in Sukuk issuance and other related money market products. I have noticed that the Islamic Financial Institutions have already started addressing the liquidity management issue by introducing new products – they no longer depend on the International commodity Murabaha – which is proof that the sector is improving. Furthermore, patrons and practitioners of the Industry need to pay more attention to Shari’a compliance, and particularly, I want to emphasise on the importance of creating new products that meet the requirements of their customer segments at one

“I believe that I am as yet to realise my dream of having true Islamic economic principles. It is upon this that the entire resources of society should be mobilized - according to the principles of Shari’a – and should be utilized for the benefit of society, again according to the principles of Shari’a .”

Interviewoneonone

THE FUTURE OF RETAIL MOHAMMED ALSHAYA

How has the GCCâ&#x20AC;&#x2122;s reatail sector performed in 2012? As in most markets demand from consumers across the Middle East has declined. This is particularly evident in the luxury sector as consumers show more caution in their spending habits and search for greater value. Though malls continue to be popular destinations there is no doubt that the frequency of purchases has slowed down. My view is that the luxury retailers have seen their businesses decline by as much as 25 per cent. How is the Alshaya business performing across the Middle East? Given the signs of slowdown that were already appearing in the last quarter of 2008 we planned accordingly. We were not surprised by the way things have developed this year so overall we are above our expectations in terms of our half year performance. As a total business we are still experiencing single digit growth during 2009. However productivity measures were under pressure as we all geared ourselves for bigger expansion. Some markets in the Gulf have been impacted more adversely than others. Some developers in my opinion have not acted responsibly in these circumstances and have made a difficult situation immeasurably worse by continuing to demand high rents at a time when retailers can least afford it. I would sincerely urge these developers to review this and help to create a win win partnership. Local authorities and developers also need to be careful in my opinion. There is a real threat of oversupply. Particularly of large expensive malls. I would encourage them to look at developing smaller more accessible and convenient shopping strips that serve local consumers and put a hold on licenses given to developing larger malls. Notwithstanding these challenges we are confident in the long term

however and feel that the allure of Dubai as one of the worldâ&#x20AC;&#x2122;s premier shopping and leisure destinations will prove once again irresistible as the global economy improves and the confidence of consumers returns. Some markets on the other hand continue to grow healthily despite global and regional economic conditions. Our businesses in Kuwait have proved to be robust. In the Avenues shopping centre for example consumer traffic is at an all time high and sales volumes are better than last year. We are also seeing healthy growth in markets such as Lebanon and Russia What is the impact of slowdown on company investment? Clearly because of prevailing economic conditions and in some instances the cancellation or postponement of mall projects we have reduced the number of new store openings. Nevertheless we are still on target to open up 230 stores by year end. These will be mainly in the Middle East but also across the other markets we operate in, namely Russia, central and eastern Europe and Turkey. Next year we are already planning to open 150 stores. One exciting element of this continued growth is that a great number of these stores will introduce new and fresh brands to the markets we serve like Office Depot, Payless Shoesource, American Eagle Outfitters, Express Clothing, Pottery Barn and PF changes to name but a few. Our desire to give our consumers greater and greater choice remains as strong as ever. In some instances we have had to close stores and lay off staff. This was to a large extent due to the brand itself having had problems in their home market. Thankfully the numbers have been small. Because of the breadth of our brands portfolio it is relatively easy for us to redeploy staff and resources to support our strongest brands which continue to grow well and as mentioned before our new ones. We have recruited more than 2700 new staff into the business so far this year.

infocus

KUWAITâ&#x20AC;&#x2DC;S STORY His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, fourth son of the late Sheikh Ahmad AlJaber Al-Sabah, who was born in Kuwait on June 6, 1929, and educated in the schools of Kuwait and later completed his studies with private tutors. His Highness Sheikh Sabah had been a leading political figure for the past four decades, and headed Kuwait`s diplomacy since 1963 when he became the country`s foreign minister.

HIS HIGHNESS SHEIKH SABAH AL-AHMAD AL-JABER AL-SABAH His Highness Sheikh Sabah had taken up official duties when he was appointed on July 19, 1954, by the late Amir, Sheikh Abdullah Al-Salem Al-Sabah, as member of the Higher Executive Committee assigned with regulating operations in governmental departments and placing plans for their activities. His Highness Sheikh Sabah was then appointed Chairman of the Department of Social Affairs and Chairman of the Department of Press and Publications in 1957, and after Kuwait`s declaration of independence on June 19, 1961, he was appointed director of both the Department Press and Publications and the Department of Social Affairs and Labor. On August 26, 1961, the Higher Executive Committee - which carried out the duties of today`s cabinet - was formed and His Highness Sheikh Sabah became a member as chairman of the two departments, and late became member of the Constituent Assembly assigned with placing the Kuwaiti Constitution. When departments were regulated into ministries in November, 1962, His Highness Sheikh Sabah came to hold a number of ministerial positions, including Minister of Guidance and Information - later changed to the Ministry of Information. His Highness Sheikh Sabah was also appointed head of the Kuwaiti delegationstotheUnitedNationsandtheArabLeague,andbecameMinister of Foreign Affairs and head of the permanent committee of Gulf aid in February, 1963. As minister, His Highness Sheikh Sabah became a member of the National Assembly (parliament) since its establishment in 1963 and up to today, and witnessed the different constitutional events that took place during that period. His Highness Sheikh Sabah Al-Ahmad AlJaber Al-Sabah, had represented the late Amir, His Highness Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah in many local and international conferences and meetings in recent years. As for the different ministerial positions that His Highness Sheikh Sabah held, he was First Deputy Prime Minister and Minister of Foreign Affairs since the 16th Cabinet formed on October 18, 1998, and the 20th Cabinet formed on February 14, 2001. His Highness Sheikh Sabah was acting Minister of Information from February 2, 1971 to February 3, 1975 in addition to his post as Minister of Foreign Affairs, and was appointed Deputy Prime Minister on February 16, 1978 in addition to his post as Minister of Foreign Affairs. He was appointed Minister of Information on February 9, 1982 in addition to his posts as Deputy Prime Minister and Minister

of foreign Affairs, and relinquished his position as Minister of Information in 1985. He was appointed Deputy Prime Minister and Minister of Foreign Affairs on March 3, 1985, and appointed as First Deputy Prime Minister and Minister of Foreign Affairs on October 18, 1992. On July 13, 2003, an Amiri decree was issued appointing him Prime Minister and assigning him to the formation of the new Cabinet. His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah took oath in a special session after the demise of late amir HH Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, thus becoming Kuwait`s 15th Amir and commencing a new and bright era. Kuwaitâ&#x20AC;&#x2122;s future economic outlook: Kuwait is a small, relatively open economy with proven crude oil reserves of about 96 billion barrels (15.3 km3), i.e., about 9% of world reserves. Petroleum accounts for nearly half of GDP, 90% of export revenues, and 95% of government income. Kuwait lacks water and has practically no arable land, thus preventing development of agriculture. About 75% of potable water must be distilled or imported. Higher oil prices reduced the budget deficit from $5.5 billion to $3 billion in 1999, and prices are expected to remain relatively strong throughout 2000. The government is proceeding slowly with reforms. It inaugurated Kuwaitâ&#x20AC;şs first free-trade zone in 1999 and will continue discussions with foreign oil companies to develop fields in the northern part of the country. In 2007, hydrocarbon industries accounted for well over 95% of the Kuwaiti economy. Diversification of the economy into manufacturing industries remain a long-term issue. Current GDP per capita reached astonishing peak growth of 439% in the 1970s. But this proved unsustainable and contracted by 58% in the 1980s. However rising global oil demand helped register growth of 91% in the 1990s. Diversification is a long-term issue for this over-exposed economy. Industry in Kuwait consists of several large export-oriented petrochemical units, oil refineries, and a range of small manufacturers. It also includes large water desalinization, ammonia, desulfurization, fertilizer, brick, block, and cement plants. During the invasion, the Iraqis looted nearly all movable items of worth, especially high-technology items and small machinery. Much of this has been replaced with newer equipment.

globalprespectives

STARBUCKS A GLOBAL PHENOMENA Howard Schultz, 57, is the chairman and CEO of Starbucks. He originally bought the company, then simply a purveyor of high-quality coffee beans, in 1987 and went on to transform it into America›s — and the world›s — leading coffeeshop chain: Starbucks currently has more than 16,000 stores in 54 countries and annual revenue of more than $10bn. Having stepped aside from the CEO role in 2000, Schultz famously returned as chief executive in January 2008 after a slump in sales. He tells the story of the subsequent turnaround in his recently published book, Onward: How Starbucks Fought for its Life Without Losing its Soul.

HOWARD SCHULTZ

CHAIRMAN AND CEO OF STARBUCKS

How’s business? Despite the fragile nature of the economies around the world, business is quite good. We had the strongest year in our history in 2010 and the last two quarters were consecutive record quarters for the company. So we›re quite pleased. But at the same time we need to be extremely thoughtful and disciplined about what we›re doing because of the nature of the world we›re living in. Unemployment in America is still nine per cent, and in the UK it’s eight per cent. Is it fair to say that China is the biggest area of potential growth for you at the moment? We have 800 stores in greater China and about 400 on the mainland, and it’s a fantastically strong market for us. The Chinese have embraced Starbucks as their own and are using our stores literally as a third place between home and work. Given the emerging middle class and how aspirational they are and their understanding of western brands, we have a very significant opportunity to have thousands of stores in China and I’m quite excited by that. Despite the fact there›s no tradition of drinking coffee in China? Not unlike Japan and most of Asia, these are tea-drinking consumers, but in a very short period of time — we›ve been in China 12 years now — we have created an understanding of coffee. If you walk into one of our stores in Beijing you will see exactly what you see in London, and that is people enjoying coffee, socialising, having meetings. People are still drinking tea but the coffee category is growing and we’re going to be a big part of it. When you returned as CEO, there was a sense that the company had been trying to grow too quickly. What›s the difference now? The kind of growth we’re talking about right now is different. It’s not growth to try and hit a number or satisfy any constituency other than our customers. We’ve learned some lessons and put in place new processes to ensure there›s a tremendous amount of analysis both before and after decisions, whereas in the past, when we were involved in hypergrowth, very rarely did we look back, we were always looking forward.

So at the age of seven I witnessed a kind of fracturing of the American dream. In a way, the vision for Starbucks was to create the sort of company that my father never got a chance to work for, that would value the worker. That precipitated two unique benefits that had never been created in America before: stock options and health insurance for every employee. What are the main lessons you›ve learnt over the last two or three years about turning a company round? You’ve got to have the right strategy and you have to have great execution. But it’s really about human behaviour and it’s about leadership. We›re not in a business that’s technology based, we’re in the people business and leading an organisation that’s so people based means that everyone has to have a reason to believe, everyone needs to be faced in the same direction, and everyone needs to understand that it’s not about thousands of stores, millions of customers or thousands of employees, it’s about one person and one extraordinary cup of coffee and one customer. I also think transformation doesn’t have a finish line and success is not an entitlement, it has to be earned. So we›re not celebrating. We still have a lot to do. How much longer will you remain as CEO? I’ve told the board and our shareholders that I’m here for the long term and won’t be heading out any time soon. Although I’m not sure that›s what my wife wants to hear. Finally, what›s your favourite cup of coffee? My favourite coffee is Sumatra made in a French press. But I have to make it myself!

What’s so special about coffee? It’s a social beverage, it brings people together. I had an epiphany in 1983 walking the streets of Milan and Verona. I was struck not just by the romance of Italian espresso but also by the sense of community that existed in the cafés. It was through that experience that I realised what an opportunity existed, because there was nothing in America like the English pub at the time, there was no social place. The question was, could we create an environment around coffee? You’ve recently been very vocal on the subject of the price of coffee on the commodities market. Why is that? Coffee’s at a 34-year high right now and there is no evidence whatsoever of a supply or demand issue driving that. The question I would ask is: who’s benefiting? In the middle of all this is a litany of different types of very sophisticated financial speculation. It reminds me in a way of the subprime mortgage crisis in America. Perhaps we haven›t learnt our lesson. How has your background informed your business career and your business values? I grew up in Brooklyn, New York. My dad had an accident when I was seven years old, and as a result he was fired. In those days, if you were an uneducated blue collar worker in America and had an accident, there were no benefits or health insurance.

highprofileinterview

SUCCESS BREEDS SUCCESS Prince Alwaleed bin Talal was born in Riyadh and educated in the U.S. He obtained a degree in Business Administration and graduated Magna Cum Laude from Menlo College in 1979 and earned a Master of Social Science degree with Honors from Syracuse University in 1985. Prince Alwaleed was ranked 26th in the 2011 Forbes magazine list of billionaires and is now the largest single investor in Citigroup. Individually and through his foundations, Prince Alwaleed has made philanthropic grants and donations in over 60 countries, totaling more than $3 Billion over the past 30 years.

HRH PRINCE ALWALEED BIN TALAL

FOUNDER AND CHAIRMAN, KINGDOM HOLDING COMPANY

Company Brief Kingdom Holding Company (KHC; www.kingdom.com. sa) maintains holdings in some of the world’s best known companies and brands in an array of sectors including banking, media, information technology, retail, business, health care, entertainment, and tourism. KHC’s investments include stakes in Citigroup and News Corp and real estate holdings including the Four Seasons, Fairmount, and Mövenpick hotel chains, as well as properties like the Plaza Hotel in New York, the George V in Paris, and London’s Savoy Hotel. You have been very vocal about the need for change in the Middle East. What are your thoughts about the changes going on now and what needs to happen to secure a stable future in the region? Several revolutions have taken place in the Middle East and North Africa region, in Egypt, Tunisia, and Libya, and there are others in the making, such as Yemen. Syria is also developing into a dangerous situation. The common denominator among these revolutions is that the people in those countries would like to have a say and participate in the process of shaping their societies. The Arab countries that now have stability but still haven’t latched onto what is happening in our region have to learn lessons and start adopting at least some of what the people want. What more can be done to achieve a better East/West understanding? Following 911/, the gap between West and East widened, and more importantly, the gap between the Arab world and the United States, and to make it even more dangerous, between Christianity and Islam. We have to do our best to make sure the gap is bridged among those communities. We’re doing our best in the world of academia by having centers at the American University in Beirut and the American University in Cairo educate people in our region about the American system and its way of life. We have two centers in the best universities in the U.K. – Cambridge and Edinburgh – and we have centers at two universities on the East Coast of the U.S. – Harvard and Georgetown. We have also established an Islamic center inside the Louvre in Paris. The sponsor of all these centers is the Alwaleed Bin Talal Foundation, whose focus is to find common ground in the worlds of academia, art, and culture in order to bridge the gap as much as we can. HRH Prince Alwaleed bin Talal with Vice President Moody Awori and UNWFP Special Ambassador Abdulaziz Arrukban participate in distribution of UNWFP relief aid packages. What areas are the foundations involved in? We have several areas of concentration: one is focused on bridging the gap between communities and societies and religions; another division focuses on female empowerment in Saudi Arabia; another on alleviating poverty and educating people in our country and our region; and another assists those countries that face catastrophes or natural disasters such as the tsunami in Japan. Has the progress on women’s empowerment been as strong as you had hoped? Any society, community, or country that doesn’t have 50 percent

of its population participating in the system and the society or the advancement of its economic development cannot be functioning normally. Since we began this process several years ago, there have been a lot of moves along that front whereby women are becoming incorporated into the society and system. I use my national, regional, and international presence to advance that cause by giving women the platform to be public, to be vocal, and to ask for equal rights. We’re not asking for more rights for them – just equal rights with men so they can perform their duties on the national front in Saudi Arabia. In comparing the Saudi Arabia of today with that of four or five years ago, there has been a big improvement.Have we reached our goals? No. We are way short of them, but we will keep fighting until we reach our goals. You are the largest investor in the U.S. What are the most important characteristics you look for in deciding to invest in a company? You need good management that you believe will be there at least for three to five years. News Corp., for example, is an international media company. There are many local and regional media companies in the States, Europe, and Japan, but you have no international company involved in media like News Corp., which has interests in Australia, Japan, the U.K., Germany, Italy, America, and Latin America. There is not only good management but good profitability as well. The Four Seasons is a unique brand that caters to five-, six-, and seven-star clientele and it’s difficult to find another hotel management company to compete with it. So it’s making sure that there is value, differentiation, good management, good cash flow, and the potential for profitability and increased value of the share price. Were you surprised by the severity of the economic downturn and have the right steps been taken globally for growth? We only began to see an end to the economic tsunami that began in the summer of 2007 in 2010. Things are stabilizing now and it was a good scaffolding that the government put in place with QE1 and QE2, but right now, it has to be taken out. But there is concern that once you take out the QE2, this will again shock the economic system. I don’t believe it will be shocking, because once you take the scaffolding out, you assume the building can stand alone; otherwise, the construction is bad. It was a nasty blow that impacted the whole world, but we are seeing now indications that the worst is over and we’re getting back out from under it. In terms of investing in the future, many suggest the U.S. is no longer the area for growth and the emphasis is being placed on the BRIC markets and Southeast Asia. Are you more focused on those developing markets? The U.S. is down but not out. There is no growth right now, and for that matter, not in the OECD countries or Japan either. But in the BRIC countries and other countries with high growth rates, there are risks – foreign exchange risks, political risks, and tax risks. The investment climate is not as stable as in the U.S. So you may not get good growth at present in the U.S. and OECD countries, but you have stability. And in the BRICs or third-world countries, you have to be ready for some surprises. At the end of the day, it’s high risk, high reward; low risk, low reward.

What characteristics make a successful leader today, especially in business? A successful businessman has to have a plan and objectives, as well as a mission statement, and has to have the guts to make decisions that sometimes might not be popular short term. You have to be a leader and sometimes make decisions that may not be appreciated by either the community or your managers. Nevertheless, you can’t just be a one-man show. We established these traits at KHC a long time ago, and we are proud of that. Our corporate governance policies preceded all the scandals and problems that took place in the States and before U.S. companies were forced to reform. For example, the relationship between me and my company, Kingdom Holding, was established since we had our IPO. So it was important to me early on. No matter what corporate governance systems you implement, doesn’t it come down to human nature at the end of the day? Sure. Human nature is full of shortcomings, but a good leader will not accept shortcuts or any of the things that taint his name, because once your name is tainted as a leader, it’s very difficult to recoup. You can build a company for 20 or 30 years and in five minutes, you can ruin it with one scandal or problem, no matter how small. So it’s important to keep your name clean and pure. Many on your management team have worked with you for a long time and know you well. If I was talking to them without you in the room and I asked what it was like to work for Prince Alwaleed, what would they say? With me, what you see is what you get. I’m tough, I’m to the point, and I give a manager a second chance for a mistake, but not a third chance. It’s inevitable to make mistakes, because if you don’t take risks you don’t make mistakes, but you have to learn from them. Plus, we have very high standards of ethics – that is very important to me. The norm in the U.S. now is to have high values and make sure that people are honorable, but that should be a given. You shouldn’t have to go through a crisis to understand that this is necessary. Many around the world say there is a lack of leadership today. Do you agree? It’s an evolving situation. Each era has its own leaders in business and in politics. So I don’t believe good leaders have disappeared. But some leaders are worried now and are being careful not to bring about a scandal or problem. But I don’t think that the world lacks leaders in politics, economics, finance, or business. What are you most concerned with globally to make sure we get on the right path? With what is happening in the Middle East and the problems in the U.S. and Europe, there are a lot of challenges, but also a lot of opportunities. In the U.S. specifically, the challenges have to be faced with good leadership

and Congress has to work more closely with the President and resolve the problems. Do you ever turn off the business? I believe in networking, because today business, economics, and finance are intertwined with politics. So in business, you have to be in politics and economics as well, especially in our part of the world. What do you do to relax? You have to have time for work and time for your mind and body. My way of doing business is that no matter how big the crisis, you have to accept it with an open heart and mind; shouting and screaming doesn’t help. Remain composed and absorbed, and be rational in your approach. Any company is only as good as its people. If you don’t have good people, not under you, but with you, each within his or her own field, who are at least equal to you if not better, it won’t work. Because you are working on so many fronts and anyone who claims he can manage all of it simultaneously is going to fail. I believe in what Reagan used to say: “Trust, but Verify”. And if someone does well, you reward him. If he doesn’t do well, you penalize him and give him a warning, but at day’s end, you have to change. What advice would you give to young people today looking for inspiration as to their future? When students graduate, they need an objective and a mission statement, and they need to determine their risk appetite and their direction. It’s the job of the father and mother, as well as the community, to give direction. That is why our communities, societies, and nations have to open up discussion, to give the youth more direction and more opportunity to prepare themselves for being leaders in business, economics, finance, or even in politics. You have touched so many lives through the foundation. Do you ever take the time to appreciate all you have done? I believe in working hard and being successful, because success breeds success and that drives me. But it’s also about helping your immediate community, the society, the nation, and the whole world in general. That’s why we have these different aspects – to help as much as we can in the world.

“A successful businessman has to have a plan and objectives, as well as a mission statement, and has to have the guts to make decisions that sometimes might not be popular short term.”

303 23

diplomaticointerview

Canada established relations with the United Arab Emirates in 1974. Each maintains an embassy in the otherâ&#x20AC;&#x2DC;s capital.

H.E. ARIF LALANI CANADIAN AMBASSADOR TO THE UAE

The ambassador, Arif Lalani, who doubles as Canada’s first Special Envoy to the Organisation of Islamic Cooperation, has been in the country little under a year, arriving in October last year — “As Emiratis like to say — I haven’t spent a summer here yet.” He lives with his “partner in (his) work here”, New Zealand-born Canadian wife Katie, who, in addition to a private sector career, works as a volunteer for INJAZ-UAE, an organisation of corporate mentors who inspire young people to reach their full potential through various skills programmes. The couple are also involved with the Terry Fox runs around the country, which commemorate the efforts of the Canadian athlete and cancer victim to raise the profile of cancer, and have raised more than $5 million for cancer research in the UAE. Lalani, who sits on the Operating Board of Directors of Canadian think tank Centre for International Governance and Innovation (CIGI) (incidentally chaired by the founder of BlackBerry — “a great Canadian game changing invention”) as well as the board of the Munk School of Global Affairs at the University of Toronto, says he has enjoyed every minute of his time in the UAE. Fortunately, the official likes to drive, and says he has been using that vehicle to try to explore all the emirates, which he is still discovering. “I love being in the desert, though I spend a lot of time on the highway between Abu Dhabi and Dubai!” Lalani has also discovered a passion for falconry, and enjoys watching the predatory birds train, race and hunt. He says he is also learning about Emirati poetry, while he has been exploring the local arts scene, including Abu Dhabi Art, Art Dubai and Design Days Dubai. “I would like to have more Canadian artists in the UAE.” What do you think are the successes of the UAE? The UAE is a model of what I call enlightened accelerated development. Through its visionary leaders, it has achieved one of the highest standards of living, anywhere in the world, in just one generation. It is a source of stability, and economic growth throughout the region and globally. It represents for me the “new Middle East” — with a much needed sense of aspiration to be the best in the world. In this respect, Canada supports its efforts to continue to improve on good governance, innovation, education and health. What do you think are the challenges faced by the UAE? I believe the UAE’s major challenge is the diversification of its economy; and concern for stability in an increasingly volatile neighborhood. I also think achieving the Emiratisation goals is a key objective for the UAE. Canadian institutions and Canadians can be partners in this exercise also, in terms of training and capacity building. What are your priorities in your role? To help Emiratis and Canadians understand how important we are to each other — that’s priority one. I believe that the UAE and Canada are strategic partners for the future and I want to help build that foundation. That’s why we announced a shared Strategic Agenda in April where our governments agreed to cooperate on prosperity,

security, and development. What are the relations between the UAE and your country? Our relationship is stronger than it has ever been. The UAE is Canada’s largest export market in the Middle East, trade is up this year, and over 40,000 Canadians live and work here, with 150 Canadian companies doing business here; the UAE is amongst the top 10 investors in Canada. Our foreign ministers have visited each other four times in less than a year, and our Trade Minister will visit soon also. We are so pleased the visa regime has been restored by the UAE government, and we have been part of the nation-building story of the UAE. The Higher Colleges of Technology model was based on a Canadian educational system and the design and construction of landmarks like the first Abu Dhabi Airport and the original Maqta Bridge were built by Canadian firms. And of course the Canadian mint produces the UAE’s dirham coins. In modern times – the iconic Emirates Towers were designed by Canadian architects, the fountains at Burj Khalifa are Canadian, and don’t get me started on Tim Hortons! Is it fair to say the Canadian and UAE governments have had a rapprochement of sorts after the visit by Foreign Affairs Minister John Baird in April? As I said, the relationship is stronger than ever and the foreign ministers are friends. My minister sees UAE Foreign Minister Shaikh Abdullah bin Zayed Al Nahyan as a trusted partner. We understand the strategic potential of the relationship. Canada and the UAE are focusing their efforts on implementing the shared strategic agenda announced in April to cooperate on creating economic prosperity for both countries, strengthening security, and advancing development in third world countries. Is there any intention to review travel visa stipulations for Emiratis travelling to Canada, for ease of travel? It is a fairly easy and simple process for Emiratis to obtain a visa to Canada. We offer a multiple entry visa valid for up to ten years, with a processing time of 5 days, and do not generally request an interview. Emiratis and UAE residents can now also apply through a Canadian visa application centre (VAC), which has longer working hours. Are the UAE and Canadian governments discussing landing rights in Canada for Emirates and Etihad planes, and in the UAE for Air Canada planes? As permitted under our air services agreement, discussions take place periodically between Canadian and UAE civil aviation officials which allow for the review of new market developments. Air Canada and Etihad Airways recently announced a code sharing agreement, which will enhance business and leisure travel between the two countries. Is the Canadian government looking at restoring military personnel in the country? We work very closely with Emiratis on a number of security and military issues here and abroad. For example, the UAE was an important ally for Canada in Nato operations in Libya. I was pleased to see the visit of the Canadian navy ship HMCS Toronto to ports in Abu Dhabi and Dubai in the last few months. We continue to enhance our cooperation.

myopinion

DUBAI’S SHEIKH MOHAMMED SHOWS HOW POWERFUL BRANDING CAN BE AS A LEADERSHIP TOOL

“Sheikh Mohammed and his Dubai could be a source of inspiration for you, if you are a leader, on how you can move your people, customers, and partners by sharing energetic aspirations and walking in front of the joint effort to pursue them.”

By Nicolai Tillisch, the author of Effective Business in The Gulf: Mastering Leadership Skills for Greater Success and the founder of Dual Impact, the Dubai-based consulting and coaching company.

The tennis match lasted some 20 minutes back on February 22, 2005, yet the event itself is a symptomatic element in a unique story about branding and leadership. Andre Agassi and Roger Federer played each other on the helipad of the Burj Al Arab hotel 650 feet above the ground. The photos became instantly circulated around the world, and they are still remembered by impressively many people around the globe. Meanwhile, branding has been on a long and tortuous journey to reach the top management agenda. John Wanamaker, who was one of the advertising pioneers, did honestly highlight a fundamental dilemma: only about half of advertising actually worked, but nobody knew which half that was. The point is still being brought up as if it were only yesterday, even though it is more than a century old and technology makes it possible today to measure marketing quite well. In my work as an executive coach and facilitator, I experience that many business leaders are much less comfortable with taking bold decisions regarding branding than other aspects of their business. One explanation is that a moderate share of these individuals has worked in marketing while climbing the career ladder. Another is that executives are first and foremost accustomed with quantitative analysis, as opposed to qualitative analysis that is also required when understanding and playing with the emotions in a brand. You would probably never have guessed that Dubai and several of its government-related corporations would represent a case example of how effective branding and leadership can go hand in hand, had you been asked just a few decades back. The city center was then a vibrant– but small–and proud–but not rich–enclave covering the banks of its creek. Dubai has made some noise–particularly with its historical mix of Arab, Indian, and Iranian merchants–but nothing that was heard on the world scene. Rather serious branding has helped Dubai step up, as this has been an integrated part in many of its moves. Branding helped lead the way towards what Dubai is today, and the leaders at the very top have been closely involved in branding the emirate. Business partners, expatriates, frequent travelers, and tourists did all have to be convinced that it was all possible. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Vice President and Prime Minister of the United Arab Emirates, has very much the honor that Dubai has taken on its magnetic power and reached around the entire world to attract business and people. He became the ruler in early 2006 and started building the foundation for his achievements already as Crown Prince prior to this. Communication is close to the heart of His Highness, who is also an admired poet; a bestselling author with his book, My Vision; and an

enthusiastic social networker with more than two million followers on Twitter. Monumental constructions that he is behind, such as Palm Jumeirah, Burj Khalifa, and the previously mentioned Burj Al Arab, do speak for themselves when they are pictured in the international press. Dubai plays on a large register of channels and activities to attract people and to give them a unique experience and a feeling of belonging. One of the other many examples is Emirates Airlines, which helps to promote Dubai on its more than 100 destinations and mesmerizes all of its new visitors with a magic video about the emirate before every one of its landings here. While corporations–and other cities and countries, for that matter– define their brands by nicely packaging what they already have, Dubai is as much building on the dream about its continuous progress. This is irrespectively that the metropolis already has much more to offer to many than most other places. Dubai is the single most popular location among international companies to place their regional headquarters for the Middle East and often also Africa or India. The city is in the absolute top league for places to host large conferences. It is increasingly the natural meeting point between the West and the ever-strong East. Dubai serves also as a kind of new oasis for its large neighbor Saudi Arabia, for whom it is everything from a relaxed family hideout during Eids to an attractive honeymoon destination. Middle-class families from anywhere in the world are also putting Dubai on their holiday wish list. A steady stream of major sporting events within golf, horse racing, and tennis lures fans. At the same time, the international jet set makes their regular–and almost mandatory–visits. All this helps paint an attractive future for Dubai, which has also become a safe haven for people who flee countries in turmoil due to the Arab Spring or who are concerned about their place of living and want to establish an additional home in Dubai. For this same reason, large, foreign investments are currently channeled from various places into new serious real estate and other ambitious projects. Sheikh Mohammed and his Dubai could be a source of inspiration for you, if you are a leader, on how you can move your people, customers, and partners by sharing energetic aspirations and walking in front of the joint effort to pursue them. If you are a brand aficionado, then this is also an illustration of a point made by Bill Bernbach, the father of the creative movement within advertising: “Execution becomes content in a work of genius.”

leaders&thinkers

LINCOLN, EDISON AND EINSTEIN ON INNOVATION “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise -- with the occasion. As our case is new, so we must think anew, and act anew. We must disenthrall ourselves, and then we shall save our country.” President ABRAHAM LINCOLN, annual message to Congress - Washington, D.C. - December 1, 1862

It is incredible to think that President Lincoln was already talking about change, innovation and reinvention in the 1800’. We tend to think of stormy presents in today’s world where is difficult to keep up with the pace of technology. Thomas Edison invented the first electric bulb as we know it in 1878. What could possibly be seen as a chaotic present where there was no electricity, where air travel did not exist, and mobile communications where difficult to imagine. The same will be for those looking back on us in the year 2100 looking at the internet as we see electricity of the 1880’. Edison was born in Ohio in the USA in 1847. At school his teacher thought his ideas were crazy and that he might have a learning difficulty. After that, his mother taught him at home. He was full of curiosity and she encouraged him to learn things for himself. Thomas Edison is one of the greatest inventors in history and was responsible for more inventions than any other inventor. He created the first research laboratory, which he called The Invention Factory, probably one of his greatest achievements. Altogether he took out patents on 1093 inventions.

Taking in consideration that the pace of change multiplies as time passes, we can’t even begin to imagine what the year 2100 will bring; the same way Thomas Edison wouldn’t believe what we have created through his light bulb. In the information age, knowledge is power. Education is recognized as being the single most important path to development and to limiting poverty. With knowledge replacing physical and natural resources as the key ingredient in economic development, education and human resource development policies require rethinking. The fast pace of change, an ever developing information age, is bringing a new paradigm on how nations encourage and promote innovation and creativity. Human capital theory views education and training as an investment that can yield social and private returns through increased knowledge and skills for economic development and social progress. The economic argument in favor of knowledge-based education and training is linked to the perceived need of the global economy. It is based on the assumption that economic growth and development are knowledge driven and human capital dependent. Successful innovation requires an abundance of talent and an environment to support it. Few students emerge from secondary or tertiary education with a strong appreciation of the value of innovation in commerce and its contribution to building economic wealth. Employers also cite the general dearth of graduates across many disciplines with the requisite knowledge, skills and attitudes for taking innovative approaches to problem solving. A kid entering the schooling system today will graduate in the year 2024. The top ten in demand jobs in 2012 - Did not exist in 2005. We are currently preparing kids at school for jobs that don’t yet exist. Albert Einstein on Crises “Let‘s not pretend that things will change if we keep doing the same things. A crisis can be a real blessing to any person, to any nation. For all crises bring progress. Creativity is born from anguish, just like the day is born form the dark night. It‘s in crisis that inventive is born, as well as discoveries, and big strategies. Who overcomes crisis, overcomes himself, without getting overcome. Who blames his failure to a crisis neglects his own talent, and is more respectful to problems than to solutions. Incompetence is the true crisis. The greatest inconvenience of people and nations is the laziness with which they attempt to find the solutions to their problems. There‘s no challenge without a crisis. Without challenges, life becomes a routine, a slow agony. There’s no merit without crisis. It‘s in the crisis where we can show the very best in us. Without a crisis, any wind becomes a tender touch. To speak about a crisis is to promote it. Not to speak about it is to exalt conformism. Let us work hard instead. Let us stop, once and for all, the menacing crisis that represents the tragedy of not being willing to overcome it.” After centuries of lying dormant, information is now considered to be a wealth generator, not just in terms of contributing to economic performance of the organization, but as a major contributor to new service-based and knowledge based industries. The information society now creates one out of four new jobs and the number of job vacancies is increasing. The winners will be those who are willing to devote the time and intellectual energy necessary to understand and influence the forces that are shaping the future of the knowledge society. This is why, in a society of the future, education will play an essential role in creating the new way of life specific to knowledge and learning based society. The introduction in the educational system of new teaching techniques is a prerequisite to national economic and cultural success, as well as to increased economic competitiveness. Increasing the population’s level of education will also create a more stable labor market, by decreasing overall unemployment. It is well known that well educated individuals have a higher participation rate on the labor market.

“A successful modern economy is founded on a strong scientific base that has the ability to convert scientific research and knowledge into products and services.” Bill Gates

specialreport

1 - MELBOURNE

GLOBAL CITIES

A PATH TOWARDS SUSTAINABLE DEVELOPMENT

As the world moves into the urban age, the dynamism and intense vitality of cities become even more prominent. A fresh future is taking shape, with urban areas around the world becoming not just the dominant form of habitat for humankind, but also the engine-rooms of human development as a whole. Amidst multiple challenges facing cities today, a focus on poverty reduction and/or responses to the economic crisis is gradually shifting to a broader and more general understanding of the need to harness the transformative dynamics and potentials which, to varying degrees, characterize any city anywhere in the world.

It is really remarkable that only one century ago, two out of 10 people in the world were living in urban areas. In the least developed countries, this proportion was as low as five per cent, as the overwhelming majority was living in rural areas. The world has been rapidly urbanizing since then and, in some countries and regions, at an unprecedented pace. It was only two years ago that humankind took a historic step when, for the first time in history, the urban outnumbered the rural population. This milestone marked the advent of a new “urban millennium” and, by the middle of this century, it is expected that out of every 10 people on the planet, seven will be living in urban areas. In the last decade, the urban population in the developing world grew an average 1.2 million people per week, or slightly less than one full year’s demographic growth in Europe’s urban areas. Asia dominated the picture, adding 0.88 million new urban dwellers every week. Africa was the second largest contributor with an additional 0.23 million per week, dwarfing Latin America and the Caribbean’s 0.15 million weekly increment. Still, a common set of conditions can be found prevailing in all cities, which enable human beings to flourish, feel fulfilled and healthy, and where business can thrive, develop and generate more wealth. These conditions mark out the city as the privileged locus of prosperity, where advancement and progress come to materialize. Eight key elements found in Global Cities

2 - REYKJAVIK 3 - MALMO

Well developed Infrastructure Good Quality of Life Environmental Sustainability Knowledge and Innovation driven economies International Connectivity Compelling Global Identity High levels of Productivity Favorable business environment Well developed Infrastructure - Infrastructure is crucial for the development, functionality and prosperity of urban areas. It provides the foundation on which any city will thrive. Adequate infrastructure – improved water and sanitation, reliable and sufficient power supply, efficient transport networks and modern information and communication technologies (ICTs) – contributes to the sustainability and economic growth of urban areas, promotes the competitiveness of local businesses, improves labor productivity, enhances the investment climate in the city and contributes to its attractiveness. Good Quality of Life - Today no one disputes that quality of life is essential for a city to prosper. The notion is increasingly used by decision-makers, practitioners and urban populations alike. Everyone agrees on its importance, but everyone will also agree that this notion comes with different meanings and facets. Safety and Security are major deterrents to domestic and foreign investment and can cause capital flight. In Africa, more than 29 per cent of business people report that crime was a significant investment constraint. Environmental Sustainability - The prosperity and environmental sustainability of cities are inextricably linked. Urban areas consume huge amounts of environmental goods and services like food, water, energy, forestry, building materials, and ‘green’ or open spaces often beyond their boundaries. This undermines the assimilative capacity of the environment around urban areas.1 For example, the cities of the world generate over 720 billion tons of wastes every year, but in developing regions, even in large, presumably more affluent, cities only 25 to 55 per cent of wastes are collected. 69

Knowledge and Innovation driven economies - In an increasingly knowledge-driven world, positive development in the global economy requires high levels of human capital to generate new ideas, methods, products, and technologies. International Connectivity - Global relevance requires global reach that efficiently connects people and goods to international markets through well-designed, modern infrastructure. Geography has always played an important role in the evolution of cities. Historically, coastal cities and cities in river deltas have been preferred locations – at present, 14 of the world’s 19 largest cities are port cities. However, with advances in transport and communication technologies and also with increasing specialization, other locational factors, beyond positions along waterways, have accelerated the growth and development of cities. Compelling Global Identity - Cities must establish an appealing global identity and relevance in international markets not only to sell the city, but also to shape and build the region around a common purpose. Metro areas that are appealing, open, and opportunity-rich serve as magnets for attracting people and firms from around the world. High levels of Productivity - Enhancing urban productivity is clearly desirable, as it improves competitiveness and, ultimately, the prosperity of any city. More productive cities are able to increase output with the same amounts of resources, generating additional real income that can raise living standards through more affordable goods and services. Favorable business environment - A business-conducive environment is needed for a vibrant private sector, attracting and retaining investment (including foreign direct), creating jobs and improving productivity – all of which are important for the promotion of growth and for expanded

4 - VANCOUVER

opportunities for the poor. Cities such as Singapore, Hong Kong, Seoul, Busan, Kuala Lumpur, Tokyo, Yokohama and Osaka all feature favorable business environments, with beneficial effects on prosperity. Attracting investment from a wide variety of domestic and international sources is decisive in enabling metro areas to effectively pursue new growth strategies. Prosperity in Global Cities Never before had humankind as a whole faced cascading crises of all types as have affected it since 2008, from financial to economic to environmental to social to political. Soaring unemployment, food shortages and attendant price rises, strains on financial institutions, insecurity and political instability, among other crises, Prosperity, as defined by UN-Habitat, is a social construct that materializes in the realm of human actions. It builds deliberately and conscientiously on the objective conditions prevailing in a city at any time, wherever located and however large or small. It is a broader, wide-ranging notion that has to do with well-balanced, harmonious development in an environment of fairness and justice. Prosperity remains one of humankind’s most enduring pursuits across time and space. But it is only in the past few decades that decisionmakers, academics, practitioners and populations have started to measure this important dimension of human development. Some cities are enhancing prosperity though strategic thinking and conscious planning policies. This is the case with Dubai in which took advantage of its privileged geographic location to become the largest re-exporting centre in the Middle East, and today is emerging as a cosmopolitan centre.

Swift global integration, the rapid expansion of a global consumer class, and the rise of urban regions as the engines of global economic growth have ushered in a new era. The global economy no longer revolves around a handful of dominant states and their national urban centers. Competition among Global Cities is more open than ever before. For most of the twentieth century, Paris, London and New York formed the leading triad. Berlin was sidelined in the course of the two world wars. Moscow stood in the Soviet Bloc apart from economic competition. Tokyo was probably the first strong challenger. London, Paris, Tokyo and especially New York will continue to benefit from their legacy infrastructure, and to trade on their open societies, transparent governance and status as safe havens and knowledge hubs, as well as their technological and travel connections, for some time. But is it realistic to assume that they can retain their leading status, with relatively miserly economic and demographic growth? Going Green: What makes a city green? Thousands of cities, big and small, around the world have embraced the green movement over the last few years, with many more following their lead. From innovative recycling programs to adding more green space, it actually is becoming easy to be green around the world. Although there are not established official criterias for ranking the greenest of all cities, there are several key areas to measure for effectiveness in carbon footprint reduction. These include air and water quality, efficient recycling and management of waste, percentage of LEED-certified buildings, acres of land devoted to green space, use of renewable energy sources, and easy access to products and services that make green lifestyle choices (organic products, buying local, clean transportation methods) easy. Top 6 Green Cities Copenhagen: Roughly one-third of all residents of Copenhagen use a bicycle to commute to and from work! Even with those impressive stats, the city plans to push for more bike usage from residents and visitors by about 50 percent over the next three years. The city also hopes to reduce CO2 emissions by 20 percent by 2015 and become the world‘s first CO2 neutral city by 2025. San Francisco: In 2011, San Francisco beat out 26 other major U.S. and Canadian cities in a report by Economist Intelligence Unit in five out of nine metrics including green buildings, transportation, water, energy and air quality. Vancouver: The greenest city in Canada and second greenest in North America (behind San Francisco), Vancouver is aiming to become the world’s greenest city by the year 2020. Home to over 200 parks, Vancouver makes great use of renewable sources for power, with a majority of it via hydroelectric power.

Malmo: Sweden is a country that leads in green electricity solutions. Most of the country’s electricity comes from nuclear and hydropower. A city such as Malmo is contributing to the green project of Sweden with plans to reduce its carbon dioxide emissions by 25 percent between 2008 and 2012. To achieve the city’s target, citizens across Malmo are transforming into sustainable, eco-friendly cooperatives particularly the areas of Western Harbour, Sege Park and Augustenborg. Reykjavik: Thanks in large part to its location; Reykjavik makes use of geothermal energy generated underground from hot springs. The city is able to generate electricity and heat 95% of all their buildings. By the year 2050, Iceland plans to free itself from dependence on fossil fuels and become a hydrogen economy. Already, Reykjavik is harnessing energy and produces electricity entirely from hydropower and geothermal resources.

SCOTLAND - EUROPE‘S GREEN POWERHOUSE

Melbourne: Recently named the world’s most livable city, Melbourne is also finding ways to become the greenest. By 2020 they plan to achieve zero-net emissions thanks to a six-goal plan put in place by the city council which includes strict green building codes and improved city planning. Melbourne is home to an impressive transport network that includes low carbon impact transportation such as Melbourne‘s airport/city Skybus Super Shuttle, which is Australia’s first carbon-neutral public transport operator. Green means business There are genuine opportunities for national and city leaders to reduce carbon emissions and pollution, enhance ecosystems, and minimize environmental risks. The competition to attract international Greenfield investments is stronger than ever. For the first time, all continents are represented in the top 10 Global Cities ranking. While international investors have become more volatile worldwide, Global Cities act as anchors. Europe is still the first source and destination of international Greenfield investments, far ahead of America and Asia and the Middle East. Investors continue to focus on essential criteria to select locations, including political stability, market size, economic growth and talents, but they are also paying increasing attention to infrastructure and R&D quality. The process of making the world’s cities and urban fabric greener and maintaining them in a sustainable way will bring considerable employment opportunities. Upgrading to greener infrastructure generates jobs, whether by improving roads and buildings, establishing public transport networks, repairing and enhancing drainage and sewerage systems or creating and managing efficient recycling services. Many of these jobs will require knowledge of new technologies or working practices, for example, in constructing, installing and maintaining local hydrogen fuel-cell power stations or a network of charging points for electric vehicles. Providing training and support is fundamental to the process, within local authorities and for private companies, particularly small enterprises.

Renewable energies With the largest oil and gas reserves in the world, the Middle East and North African (MENA) may appear to be an unlikely advocate for renewable energy. However with excellent solar and wind conditions across much of the region, an increasingly tight gas market and a growing recognition that hydrocarbon reserves can be put to better use other than generating electricity, renewable energy is attracting unprecedented attention in the MENA region. Renewable energies have the potential to equip the MENA region with centuries of sustainable and clean electricity. However with a decreasing scope for hydroelectric capacity due to a lack of recent rainfall, the power targets that are being set across the region for renewable energy power capacity means that it will fall to both solar and wind energy projects to meet these specific country targets. With a number of renewable energy projects currently being planned, developed or in execution stage around the region including Saudi Arabia, Qatar, Bahrain, Kuwait, Egypt, Algeria, Morocco, Libya, Jordan, Syria and Iraq, and more recently the UAE, never has a time been more crucial to provide detailed information about the region’s long-term plans and strategies for renewable energy in the region.

KUALA LUMPUR

specialreport

PERU: THE UNSUNG HERO OF LATIN AMERICA Peru is located in the central part of South America and borders on the north with Ecuador and Colombia, on the east with Brazil and Bolivia, on the south with Chile and on the west with the Pacific Ocean. Peru is the third largest country in South America after Brazil and Argentina and ranks among the 20 largest countries in the world. The countryâ&#x20AC;&#x2122;s location facilitates the access to markets in Asia and North America.

Peru is the unsung hero of Latin America. With an economy on the rise and a stable government, the Andean country has, slowly but surely, found its feet. And it looks like its rise is not slowing anytime soon: International estimates predict that Peru will be the second fastest-growing economy in Latin America in 2014. According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Peru will remain one of the most economically dynamic countries in the hemisphere with a GDP growth forecast of 5.5 percent – second only to Panama›s. Forecast Economics› predictions are more cautious, but equally positive, with 5.2 percent. The Peruvian Central Bank is even more optimistic, previewing growth for 2014 at 6 percent; the BBVA Research center takes it even further with an estimate of 6.3 percent. The International Monetary Fund named Peru “the leader of economic drive in Latin America,” with a growth of 6.1 percent and an inflation rate of 2 percent for 2014, the lowest in Latin America. Unemployment reached historic lows in 2013, at 5.8 percent as of December, according to Trading Economics. The main force behind all these predictions is mining. Mining investments are expected to total $14 billion in 2014, an annual record, compared to the $8.6 billion worth of projects started in 2012. Peru, as the fifth-largest gold producer in the world, relies largely on mining and mineral production. The increase in mineral production will support Peru’s economic growth over the next few years, even as metals prices have weakened. The projects include British Glencore Xstrata PLC›s (LON:GLEN) $6 billion Las Bambas copper deposit, a $4.4 billion investment in Sociedad Minera Cerro Verde SAA, and Canadian HudBay Minerals Inc.›s (NYSE:HBM) $1.8 billion Constancia project. Peru’s economic freedom score is 67.4, making its economy the 47th freest in the 2014 Index. Its score is 0.8 point lower than last year, with an improvement in trade freedom outweighed by deteriorations in labor freedom and business freedom. Peru is ranked 7th out of 29 countries in the South and Central America/ Caribbean region, and its overall score is above the world average. Over the 20-year history of the Index, Peru has advanced its economic freedom score by nearly 11 points. It has achieved double-digit improvements in half of the 10 economic freedoms, most notably in monetary freedom and trade freedom, which have improved by over 35 points and provide a stable foundation to improve the economy’s engagement in global commerce. Peru’s economy continues to be rated “moderately free.”

specialreport

LEADING AHEAD WITH REFORMS Ollanta Moisés Humala Tasso, born June 27, 1962, has been President of Peru since 2011. A former army officer, Humala lost the 2006 presidential election but won the 2011 presidential election in a runoff vote. He was elected as President of Peru in the second round, defeating Keiko Fujimori. Presiden Humala ran on a platform of “integrated nationalism,” which is understood as actively trying to include all of the various ethnic groups and social classes of Peru to forge a stronger nation. Peru continues to be an explosive mix of ethnicities, special interest groups and social classes, which will make achieving Humala’s vision challenging. His party is “anti-imperialist” and “latinamericanist,” which means that he intends to find solutions to Peru’s problems in political and economic unity among Latin American nations, as opposed to the USA and Europe.

OLLANTA MOISÉS HUMALA TASSO PRESIDENT OF PERU

PERU UAE EXPAND RELATIONS Peru is seeking to harness investment and expertise from Dubai as it plans to build a major logistics zone between its main port and airport. Luis Miguel Castilla, Peru›s minister of economy and finance, was speaking on a trip to the UAE as it looks to bolster inward investment and trade. Mr Castilla held talks with DP World about extending the port company‘s investment beyond its operation of Peru›s leading port, Callao. “They have a concession of one of the terminals in our port. But we are thinking about a broader idea, which is joining our airport and port and creating a large logistics zone. Given the UAE and Dubai‘s particular experience in developing hubs logistically, there may be room for new investments to come along.” Peru has been one of South America‘s brightest economic stars in recent years, recording average annual growth of 6.4 per cent in the decade from 2002 to 2012. But after growth slowed to expand to 4.8 per cent in the first half of the year, the president, Ollanta Humala, has prioritised investments and sped up infrastructure projects. In an effort to drum up funding for such projects, Mr Castilla is on an investment roadshow to the UAE, London and Frankfurt. The UAE is the largest Arab world investor in Peru, ploughing in US$1.3 billion to $1.5bn since 2010. Mr Castilla also met representatives from Abu Dhabi Investment Authority and Mubadala Development. “We showed them the $50bn public-private partnership projects we have over the next year and a half in transportation, subway, roads, airports. We also have projects in energy, gas and oil,” he said. Mr Castilla was accompanied by a delegation of Peruvian business people looking for investment to expand their business overseas. He said he was hoping to sign deals on a double-taxation agreement and investment protection with the UAE, as forerunners for a possible freetrade agreement.

LUIS MIGUEL CASTILLA Minister Of Economy And Finance

Mr Castilla was accompanied by a delegation of Peruvian business people looking for investment to expand their business overseas. He said he was hoping to sign deals on a double-taxation agreement and investment protection with the UAE, as forerunners for a possible free-trade agreement. Last year, Peru exported goods worth $25m to $30m to the UAE after little growth in the previous two years. Mr Castilla hopes to persuade Emirates Airline to start flights to Lima soon. The lack of direct flights mean the flying time between the two countries is more than 20 hours. GDP growth in Peru would be about 6 per cent this year after a â&#x20AC;&#x153;disappointingâ&#x20AC;? start to the year, supported by growth in the United States, China and elsewhere, and domestic reforms, he said. Alvaro Silva-Santisteban, director of the Peruvian trade, tourism and investment office Promperu, seeks greater exposure of his country in the Emirates. Based in Dubai, Mr Silva-Santisteban talks about ways trade and tourism between the two countries can improve. Your office opened in Dubai in September 2011. How has the relationship between the UAE and Peru developed over the past two years? We need to educate both sides - Peruvians and the people in the UAE about the two countries. From the Gulf we estimate 6,000 tourists went to Peru and within 1,000 from the UAE. About 1,000 tourists from Peru visited the UAE last year. In 2012, we had around 19 commercial missions between Peru and Dubai. This year we expect around 24. [Today and tomorrow], a 40-member delegation from Peru will visit Abu Dhabi and Dubai. Among these 30 will be businessmen from Peru. What are the trade figures between the two countries? Last year, Peru exported goods worth between US$25 million and $30m to the UAE. The growth in 2010 and 2011 was very little. But this year is going to be a stepping stone in the relations between the UAE and Peru. From 2010 until now, the UAE has invested between $1.3 billion and $1.5bn in Peru.

ALVARO SILVA-SANTISTEBAN

Director Of The Peruvian Trade, Tourism And Investment Office Promperu

specialreport

PERU’S TOURISM, MORE THAN MEETS THE EYE A rich cultural and historical heritage, amazing archaeological sites, a great biodiversity (coast, highlands, and jungle) and an ever more internationally recognized gastronomy attract each year more tourists from around the world. Today tourism contributes significantly to Peru›s revenues. In 2007 around 1.9 million foreign visitors came to Peru, in 2009 already 2.1 million visited, in 2010 2.2 million and in 2011 over 2.5 million paid the Land of the Incas a visit. And for 2014 Peru expects around 3 million tourist. Peru is one of very few countries whose inventory of tourism resources includes every type recognized by world tourism specialists: Natural locations, with a variety of eco-systems and a high degree of biodiversity in world terms; it is one the few countries in the world that can offer the traveler sun and beaches, snow sports, and adventure in the tropical jungle at any time of year. Historical structures show the signs of civilization from Paleolithic times through various stages of Andean cultures until they reached their prime in the grand buildings of the Incas. Folklore, with expressions of dance, music, gastronomy and crafts that are unique to each one of the regions. No wonder. Even though many foreign tourists mainly come to Peru to visit the archaeological site of Machu Picchu, there are many more that slowly become known, such as Caral, Chavin de Huantar, the Kuélap Fortress, Lord of Sipan and the Nazca Lines.

their surroundings. The agricultural terracing and aqueducts take advantage of the natural slopes; the lower areas contain buildings occupied by farmers and teachers, and the most important religious areas are located at the crest of the hill, overlooking the lush Urubamba Valley thousands of feet below. Hikers, tourists, and the early explorers describe similar emotions as they climb their way through the Inca Trail. Many call the experience magical. Glancing out from the Funerary Rock Hut on all the temples, fields, terraces, and baths seems to take you to another time. Blending in with the hillside itself, many say the area creates a seamless and elegant green paradise, making it a must for anyone who travels to Peru.

7,000 feet above sea level and nestled on a small hilltop between the Andean Mountain Range, the majestic city of Machu Picchu, soars above the Urabamba Valley below. The Incan built structure has been deemed the “Lost Cities”, unknown until its relatively recent discovery in 1911. Archaeologists estimate that approximately 1200 people could have lived in the area, though many theorize it was most likely a retreat for Incan rulers. Due to it’s isolation from the rest of Peru, living in the area full time would require traveling great distances just to reach the nearest village. Separated into three areas - agricultural, urban, and religious - the structures are arranged so that the function of the buildings matches the form of

specialreport

THE CRESCENT AND STAR IS RISING It took a decade of political and economic reforms, a strong parliamentary democracy, a customs union with the EU, and a great deal of ingenuity, but Turkey has done what most emerging markets of the world are dreaming of; it tripled its per capita income from US$3,492 to 10,444 US$ and reduced poverty, while growing its economy more than 8 per cent a year, achieving in the last two years the highest rate of GDP growth after China, to become one of the worldâ&#x20AC;şs fastest-growing economies. Growth has recently slowed as Turkeyâ&#x20AC;&#x2122;s largest trading partner, the European Union, which imports half of its goods, is shuddering from the effects of the prolonged eurozone crisis which is projected to continue in 2013. As a result the Turkish economy grew by 3% in 2012, and is estimated for 2013 to remain at 4.1%.

UAE IS TURKEY’S BIGGEST PARTNER IN THE GCC The country’s social and economic transformations, which have been led by Prime Minister Recep Tayyip Erdoğan since 2003, have become an inspirational model for the Middle East, as Turkey has risen from the ashes of the downtrodden Ottoman Empire to once again become a pivotal player with a strategic role at the crossroads of Europe, the Middle East and Russia. Furthermore its memberships of the G20 and NATO, the European Council, the Organization of the Islamic Conference and the Black Sea Economic Cooperation have also ensured Turkish prestige in international community. The attraction of Turkey’s domestic market of 75 million, together with a young and skilled workforce, are also proving a strong incentive for increased investment and trade, as Turkey’s population is forecast to grow to 92 million by 2050. There have been some bumps in the road in respect to Turkey’s relations with its neighbors. The escalation of violence in Syria continues to worry the region, and the pressure for protective military measures are growing, however Turkish diplomacy has remained staunchly supportive of the Arab League and United Nations to find an acceptable resolution of the conflict. Indeed Turkish diplomacy has looked eastwards with greater solidarity, trade and cooperation with the Muslim world and this has been furthered accentuated as Turkey’s relations with the EU have cooled following the stalling of its accession talks to the monetary union. Turkey is now increasingly developing closer relations with the Middle East, and the UAE in particular. The UAE is today Turkey’s main trading partner in the GCC, with bilateral trade increasing from US$355 million in 2000 to over US$5,3 billion in 2011, with an expected US$7 billion for 2012. More than US$6 billion worth of construction contracts were awarded to Turkish businesses in the Emirates over recent years, most recently the Turkish construction company TAV was awarded the contract for construction of Abu Dhabi Airport, and Yapi Merkezi recently built the world’s longest fully-automated and driverless metro; Dubai Metro, and Turkish Steel is building much of Dubai’s high rise buildings. Tourism and business travel is also increasing as Turkish Airlines announced new flights to the UAE and GCC countries as it expands its Asian and Middle East network. Trade has also increased in logistics, banking, food and retail, with 850 Turkish companies operating in the UAE. UAE businesses have also penetrated the Turkish market with 193 UAE companies operating there in 2012. Turkey’s Ambassador to the UAE, Vural Altay is confident relations with Turkey’s biggest partner in the GCC will be further enhanced as increased political and economic ties are strengthened. “We are experiencing a significant momentum in Turkish-UAE relations. The boom in trade and investment, coupled with the visit of Turkish President Mr. Abdullah Gul to the UAE in January 2012 and H.H. Sheikh Mohammed Bin Zayed Al Nahyan visit to Turkey in February 2012, have ensured a determined improvement of our bilateral relations, which will undoubtedly flourish in the years to come. We share many cultural and historical values, and have a common understanding of the sustaining a prosperous Middle East as a hub for trade, tourism and investment,” he said.

“Turkey is now increasingly developing closer relations with the Middle East”

countryfocus

POTENTIAL INVESTOR’S FIRST PORT OF CALL The country is competitive, prosperous and open to investment.

Turkey is ranked the 13th most attractive destination for FDI in the world, and 9th among emerging countries. It attracted US$ 16 billion worth of FDI in 2011, and is ranks43rd among 144 countries for global competitiveness in the World Economic Forum’s global competitiveness index (20122013-). Turkey’s macroeconomic stability and a healthy GDP of US $73.64 million have improved its overall competitiveness, and the Turkish financial sector is assessed as ‘more trustworthy and finance as more easily accessible for businesses.’ Standard and Poor’s gave Turkey an upgrade in 2012 on its local currency sovereign credit rating, to an investment-grade BBB. In the last ten years the Turkish lira has also gained considerable value and maintained stability, and it is today once again an internationally exchangeable currency, which has ensured that the Turkish banking sector remains one of the strongest and most extensive in the Middle East, Central Asia and East Europe. This combination of economic stability, growth and financial prosperity create the optimal conditions for investment. The potential investor’s first port of call is the Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT), which is responsible for promoting investment opportunities to a global audience. ISPAT gives investors the assistance they need before travelling to Turkey, during their stay, and well as following up on investment opportunities once they conclude their fact-finding missions. International investors can use ISPAT as a reference point and make their business contacts through this agency to all other institutions in Turkey. If travelling to Turkey to explore investment ventures is not an immediate option, ISPAT has a global reach with a network of local representatives in the United Arab Emirates, as well as Saudi Arabia, Bahrain, Kuwait, Oman, and Qatar. Other representatives can be reached in several

European capitals as well as Canada, China, India, Japan, the Russian Federation and the USA. They offer an extensive range of services through a ‘one-stop-shop’ approach. ISPAT’s services are free-ofcharge and provide for market information and analyses as well as industry overviews and comprehensive sector reports. The agency is able to find Turkish companies for potential partnerships and joint ventures and engages in negotiations with relevant governmental institutions for the facilitation of legal procedures in the establishment of business operations. Investors are also advised on how to obtain incentive applications, licenses as well as work and residence permits. What are the investment opportunities? “UAE businesses already have excellent relations with Turkey’s construction sector, but there exists further room for new ventures as Turkey’s construction and contracting sector is now the second largest export generator in the world after China,” said Mr. Ilker Ayci, President of ISPAT. He adds that there are also opportunities in the manufacturing sectors, as Turkey is among the world›s leading producers of consumer electronics and home appliances, as well as agricultural products, ships and other transportation equipment, motor vehicles, textiles and construction materials. The country is open for investment in infrastructure projects in education, energy, defence, health, transportation and other public services through Public and Private Partnership (PPP). While Turkey’s privatization efforts totalled US$ 44 billion in the last eight years, there are still areas which will be privatized, such as infrastructure and energy generation. Considering Turkey’s growing demand for energy which will require more than US$ 100 billion worth of investment in the next decade, there are numerous investment opportunities for energy companies. “The UAE is an important market for Turkey in terms of its exports of fruits, vegetables and animal products, and with further investment and closer relations between our countries, Turkish food products could in the future play an important role in the UAE’s food security,” said Mr. Ayci.

countryfocus

TAV: UAE‘S BIGGEST CONSTRUCTION CONTRACT By winning UAE’s largest ever construction contract, TAV is assured of its position as the ‘undisputed leader’ in the airport construction business

Given their proximity to the Middle East, Turkish contractors have constructed projects in the UAE to the value of $US5 billion, including hotels, towers, villas and also projects that need high level technical capacity, such as metro transportation networks, airports, pipelines and other infrastructure projects. One of the most successful Turkish contractors, TAV Construction, was awarded the construction contract in June 2012, as part of a consortium, to build the Midfield Terminal at Abu Dhabi international airport, which is valued at $US3,2 billion. It is the UAE’s largest ever construction contract and has given TAV assurance of its position as the ‘undisputed leader’ in the airport construction business. This follows a fifteen year track-record of building state-of-the-art airports in Saudi Arabia, Egypt, Turkey, Georgia, Macedonia, Libya, as well as the Dubai Emirates A380 Hangars Steel Roof, and becoming one of the two contractors for the new Doha International Airport and Muscat International Airport in Qatar . In Dubai, TAV also completed four highrise projects, including the Sharaf DG Shopping Mall (Al Sharaf) and the Majestic Tower (Al Memzar). “We believe in the rapid expansion of air services in the Gulf and we aim

to participate in every feasible airport development project in the region in order to capitalise on this growth. The UAE’s aviation sector is thriving, and I believe that we will see a sustained growth in this industry witnessing an increased capacity of up to 400 million passengers,” said Mr. Sani Şener President and group CEO of TAV Construction and its subsidiary TAV Airports (airport management). Mr. Şener has been leading the group since its formation in 1997, and has pioneered its expansion in the GCC since 2003, with $12.5 billion worth of contracts, and operating in 10 countries in the region. TAV can proudly boast to have completed 3 million square metres of projects to date, and has beaten its rivals to lucrative contracts though the use of its advanced technology as well as its highly adaptable and skilled workforce, as well as a good understanding of cultural commonalities. Turkey has the world’s second biggest number of international construction contractors with projects worldwide worth US$206 billion in 94 countries, as well as having 30 of the top 225 construction firms in the world.

countryfocus

FAST AND FULLY AUTOMATED RAIL SYSTEMS

Since its doors opened in 2009, Dubai Metro has revolutionized transportation in the emirate. Turkish railway specialist Yapi Merkezi was behind the construction of this first mass transit system in the Middle East with its modern, fully automated and driverless technology, which was built as part of the Japan-Turkey Metro Joint Venture. It has since been showcased as a landmark project all around the world, becoming a symbol of Turkish engineering. Other projects in the GCC are also succeeding, and recently Yapi Merkezi secured a $2.1bn contract to build Medinah and Meccah Stations of the Haramain High-Speed Rail Network of 450km in Saudi Arabia, as part of a consortium, in a network that will carry three million passengers a year, particularly the Hajj and Umrah pilgrims.

YAPI MERKEZI

The company specializes in heavy construction and railway projects in Turkey and around the world, especially in United Arab Emirates, Saudi Arabia, Sudan, Algeria, Morocco and Ethiopia. It has also completed tunnels, bridges, viaducts, industrial and general service buildings, water collection and supply systems, restoration, strengthening and repair works, and mass housing and city planning. As the first and largest company of the Yapı Merkezi Group, Yapı Merkezi Construction and Industry Inc., in its half a century history, has realized the design and construction of a wide variety of buildings, heavy construction and

railway projects both in Turkey and abroad. Construction of Dubai Metro had started in August 2005 and, with its 75 km length, it is the longest metro project ever constructed in the world under a single contract. The Project is the first mass transit system in the Middle East and it was shown by Construction Week as one of the 10 most important engineering projects constructed in the Arab World. Main contracting entity “Japan-Turkey Metro Joint Venture” (Mitsubishi, Obayashi, Kajima and Yapi Merkezi) has become the biggest Turkish – Japanese partnership ever realized between Turkey and Japan . “Yapi Merkezi will make history as we will connect Europe and Asia, when we complete the new Bosphorous crossing of Istanbul Strait in Turkey. The Eurasia Tunnel will have 5.4km of twin-deck tunnel 25 metres beneath the seabed, and a further 9.2km above ground, linking Kazlicesme and Goztepe, in order to relieve the traffic load of the crossing for Istanbul’s 13 million inhabitants,” says, S. Özge Arıoğlu, Yapi Merkezi’s General Manager . Having completed 1500 km of railways and 275 stations in 34 projects, Yapi Merkezi prides itself in providing safe transport for millions of passengers on daily basis on three continents.

countryfocus

NETLOG LOGISTICS GROUP From 2 trucks to 2000-truck logistics network

It is an incredible story of a Turkish man who had a brilliant vision, and made it happen with just two trucks and a sharp organizational strategy. In 1978 by Şahap Çak started a logistics company with just two trucks, and today he is the President and CEO of Netlog Logistics Group and he runs the international logistics firm with his son Gökalp, with a fleet of 2150 trucks and 3520 employees , as well as over 15,000 subcontractors vehicles as part of its logistics system. Netlog Logistics owns 12 companies, including KTT Container Transport and also has subsidiaries for refrigerated transport solutions as the Intercombi Transport Company for transportation operations in Iraq, Afghanistan, Libya, Turkmenistan and Azerbaijan. Netlog is responsible for the procurement logistics of the United Nations, and also carried food supplies for the International Security Assistance Force (ISAF) in Afghanistan Netlog Logistics is constructing enormous warehouses in the Gulf countries and has plans for US$250-worth of million investments in Turkey. The group aims for US$550 million in revenue by 2015, and looking to buy other logistics companies, and is planning to invest with US$25 million in the Gulf. In 2012 the group started building warehouses in Dubai, Abu Dhabi and Amman, with hopes set high; to dominate the logistics market of the to dominate the Gulf market. “ We load over 16,000 trucks every day and distribute to 81 cities of Turkey. We are also the largest liquid food transporter in Turkey, moving up to 250 bulk tankers a day. This proven track record is an excellent launching pad for our operations in the Gulf, especially in the UAE where large volumes of goods are moved every day. We have the air freight, sea freight and land transport networks established to serve the Gulf with efficiency and speed,” says Gökalp Çak, ViceChairman of the Board of Netlog Logistics Group.

“We load over 16,000 trucks every day and distribute to 81 cities of Turkey. We are also the largest liquid food transporter in Turkey, moving up to 250 bulk tankers a day.”

countryfocus

ASTAY SHOWCASES ONALTIDOKUZ Best known as the hotel developers of the award-winning Four Seasons Resorts ‘Sultanhamet” and “On the Bosphours” in Istanbul, Astay Yatirim has launched its first real estate project “OnaltiDokuz” (SixteenNine) which is billed to be one of the most modern and luxurious sea-side residential developments in Istanbul. The $175 million investment is located at Zeytinburnu and has 496 luxury apartments in three towers that are between 27 and 36 storeys each, together with a 25,000 square metre shopping and leisure area. Apartments have a concierge service, and range from $5,000 to $11,000 per metre in price. “We have been flooded with interest in OnaltiDokuz. Prospective buyers have been able to view 3D visuals, so they can walk around their apartment with 3D glasses, and experience our unique concept of a harmonious living space. With our reputation as a Four Seasons Resort developer, we have been able to given assurance to buyers that the properties we sell rival the quality of the best hotels in the world, said Atilla Öztürk , CEO and board member of Astay Yatirim. With magnificent views of the Marmara Sea and the Bosphorous, the OnaltiDokuz is located on a 30-acre stretch of land, 200 metres away from the sea, and within two minutes walk from a sea-taxi. The property has indoor and outdoor pools, a gym, restaurants, cafeterias, a spa, hairdressing salons, an outdoor sports area and childrens’ playgrounds.

countryfocus

ÇOLAKOGLU METALURJI Colakoglu Metalurji is one of the biggest manufacturers and suppliers of steel and iron products for construction projects in Turkey, which are exported internationally and reputed for the highest quality standards. Çolakoğlu Metalurji is also well known for bringing state-of-the-art technologies to Turkey by investing in a new meltshop and rolling mill for flat products in 2007. At the time the meltshop was commissioned, it had the world’s largest electric arc furnace, modernized by Siemens, and today it is one of the most productive in the world. The steel producer also made the first hot-rolled strip investment of the private sector in Turkey, and has continued to invest in new technologies in order to maintains its position as a pioneer in this industry. “Although in the 20112012- period the demand for steel products slowed down in Europe as a result of the economic downturn, and also in some countries of the Middle East due to the crisis in Syria, I believe the demand will pick up in the coming year in the GCC, where growth in the construction sector is still healthy,”says Ugur Dalbeler, CEO of Colakoglu Metalurji, and also the Vice President of Turkish Iron and Steel Producers’ Association.

With its focus on establishing long-term relationships with its customers, Çolakoğlu Metalurji has always been one of Turkey’s most reliable and highest quality industrial companies. It has always taken steps to improve both itself and the sector. “The steel and iron products manufactured in our facility which includes one of the largest electric arc furnaces in the world are used in the most important architectural projects around the world,” says Ugur Dalbeler, CEO of Colakoglu Metalurji. The company is registered for delivery in warehouses monitored by the London Metal Exchange, and has the ISO 9001 quality certificate, as well as similar quality assurance certificates from Germany, the United Kingdom, Netherlands, Spain, Italy, Portugal, Bulgaria, Hungary and Romania.

countryfocus

LIVING LIKE A SULTAN Turkey is a blend of ancient pleasures and modern delights

Ancient pleasures, with modern delights Ancient cities, exquisite coastline resorts, unrivalled Mediterranean and Middle Eastern cuisine, and lavish bazaars, make Turkey an irresistible holiday destination. You will undoubtedly be mesmerized as you walk in the footsteps of Turkey’s three thousand years of civilisation, catching a glimpse of the cultural imprints of the Greeks, Romans, Byzantines, Mongols, and the Ottomans, or maybe you will prefer to luxuriate in the Turkish baths, the ‘Hamams,’ and then spend hours enraptured in the ultimate shopping experience of the Grand Bazaar of Istanbul. According to travel agencies TUI AG and Thomas Cook, 11 of the 100 best hotels of the world are located in Turkey. The country has a competitive choice of accommodation from the ultra-modern complexes to the historical treasures of bygone eras. It is then no wonder that Turkey has become one of the most popular world tourism destinations, and expected 30 million tourists arrivals in 2012, mainly European travellers, as well as an increasing number of tourists coming from the UAE. In 2011 year, 35,000 UAE citizens visited Turkey and a further 60,000 are expected in 2012 as Turkey becomes an increasingly popular destination for Emirati tourists, especially those seeking to relive the life of a sultan in the luxurious palaces of the Ottomans. Part of Turkey’s tourism success story is Turkish Airlines, which is today known as Europe’s Best Airline, after winning the title at the 2012 Skytrax World Airline Awards for the second year running. One of the fastest growing airlines in the world, Turkish Airlines flies to 200 destinations, including Dubai and Abu Dhabi, as well as cities in Europe, Asia, the Middle East, Africa, North and South America. Turkish Airlines continues to distinguish itself as a unique brand, not only popular with the star footballers of Manchester United, the UK football team it sponsors, but has also introduced a ‘flying chef’ on board its flights to prepare meals for its first and business class

passengers, as well as ensuring lie-flat seats, and international WiFi. With its emphasis on fine dining, the airline’s new Business Class lounge at Istanbul airport has opened with a delicious array of Turkish delicacies, including a kebab and mezze bar, and a delectable dessert station. In October 2012 Turkish Airlines ordered 15 new A330300-’s from Airbus, becoming its seventh order, and a symbol of its rapid expansion plans. Last year the airline flew 32.6 million passengers and has a projected target of 38 million for 2012. Further aggressive growth is expected as a third airport will be built in Istanbul by 2016, to become one of the largest airports in the world with up to six runways and a passenger capacity of 100 million in the short term, and later expanded to 150 million. The President and CEO of Turkish Airlines, Dr. Temel Kotil, says this will reinforce Istanbul’s status as an international hub, conveniently located at the doorstep of Europe, Asia and the Middle East. “Our target is to link Istanbul to every destination in the world in ten years time, and give the passenger the best options for travel. We believe that we should be the first option for any traveller wishing to go from Europe to the middle east, Africa and even into Asia. The idea is that travellers will check Turkish Airlines connections first, because we have a strong network and the best reputation for comfort and service in the air. As we implement our international hub, we will ensure that Istanbul will be the capital of the airline business,” says Dr. Temel Kotil. Dr Kotil is buoyant about the future as he steers the company towards greater heights in aviation growth. In November 2012, Turkish Airlines saw its net profits in the first three quarters of the year take a phenomenal leap to TL 868 million ($480.8 million), representing a 655 percent increase over the same period a year ago.

countryfocus

ROMANCED BY THE OTTOMANS Hotel Les Ottomans is charming boutique hotel, set in the opulent backdrop of restored Ottoman palace in Istanbul on the shores of the Bosphorus. The hotel offers the romance and magic of a bygone era in luxury rooms, together with a spa with a hammam and hot tub, two pools, as well as a private jetty. With only ten suites, the emphasis on personalized service in luxurious ambiance has won the hotel World Travel Awards every year since 2007, ranging from titles such as ‘Europe’s Leading Boutique Hotel’ to the exceedingly prestigious ‘World’s Leading All Suite Hotel & Spa’ in 2012. At the Hotel Les Ottomans, you will meet its owner and general Manager, Ms. Ahu Aysal Kerimoğlu, one of Turkey’s most successful and undeniably most glamorous business women. Having won many awards as a businesswoman in her own right, she made headlines in 2012 as it was announced that she would the first Turkish space tourist in 2014, after purchasing a $95,000 ticket for the unique experience. “Turkey is experiencing a boom in tourism, especially in the luxury market. Istanbul is incredibly popular now. It’s very trendy to come here. I travel to New York twice a year for up to two months. Everybody there is crazy about Istanbul. I am also meeting more guests from the Middle East. Everyone wants to experience the lifestyle of an Ottoman pasha,” says Ahu Aysal Kerimoğlu. Ms Kerimoğlu adds that Istanbul was named 2010 European Capital of Culture in 2010 by the European Union, which boosted its reputation as a tourism capital.

interviewoneonone

KOC LOOKS AHEAD In 1934 the Kuwait Oil Company Ltd. was established by the Anglo-Persian Oil Company, now known as the British Petroleum Company, and Gulf Oil Corporation, now known as Chevron Corporation. The Company activities had extended to include exploration operations, on-shore and off-shore surveys, drilling of test wells, and developing of producing fields in addition to crude and natural gas exploration.

SAMI AL RUSHAID

CHAIRMAN AND MANAGING DIRECTOR (C&MD) OF KUWAIT OIL COMPANY (KOC)

Sami Al Rushaid is currently the Chairman and Managing Director (C&MD) of Kuwait Oil Company (KOC) responsible for all Oil & Gas Exploration and Productions Operations in Kuwait. He was C&MD of Kuwait National Petroleum Company (KNPC) from October 2004 till October 2007. He had enjoyed a long and illustrious career at KNPC where he had held a number of positions including Corporate Planning Manager, Executive Assistant Managing Director (Planning & Projects) and Deputy Chairman and Deputy Managing Director (Manufacturing) before being appointed C&MD of KNPC. He is also Board member of Kuwait Petroleum Corporation (KPC) & a Council member for College of Graduate Studies in Kuwait University. Kuwait has the fourth largest oil reserves in the world behind only Saudi Arabia, Iran, and Iraq. How do you foresee the role of oil in Kuwait’s economy and is the dependence on oil a concern to you, how do you assess the diversification efforts made by the government? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: In Kuwait we are definitely one of the major oil producers and we play a role in the energy sector. We feel that we are part of the world and when there was a high demand for energy and oil in particular we responded positively by producing the maximum in 2008. In regard to diversification, the long term concerns are there and Kuwait should seriously think about diversifying sources of income for the country. You had an important announcement this year that you had reached 3.15 million barrels a day which was the target for 20132014- but Kuwait would like to reach 4 million barrels per day. What are the main challenges and is this goal achievable? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: The main goal is achievable by 2020. The main challenge is that is may seem easy while there are many challenges. In the oil industry we categorize these as three main challenges. The subsurface- reservoirs and their capabilities to produce the amount we want carry challenges. The surface facilities- gathering center, pipelines, and facilities above the ground- need to be built in a timely manner that is consistent with the development of the fields. Third, export facilities like tankage and export terminals also pose a challenge. All three of these elements make up our production challenge and each of them need to be able to deliver and sustain the four million barrels per day capacity. The main challenge we are facing now is producing heavy

oil and the gas reserves needed for the energy sector in Kuwait. We are working on these challenges and seeking assistance from international and service companies to assists us in dealing with these challenges. How much space do you envision for international oil companies to take part in this project and your expansion plans? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: The form that we are advocating is for assistance. Production sharing is not allowed according to the constitution of Kuwait so we only seek assistance from major oil companies. Hopefully we will be able to find a suitable way to reach an agreement with them. For example, recently we reached an agreement with Shell to help assist us in the major discovery of gas. We are also seeking assistance in the areas where we currently do not have enough experience like heavy oil, and Enhanced Oil Recovery (EOR). What is the effect of the global economic crisis on the depression of oil prices? Are you going to reevaluate any of your current projects? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: The spike in oil prices wasn’t comfortable for us but we knew that it wouldn’t last. Over a long period of time we aim and hope that there will be some sort of stability. We had a clear strategy to reach four million barrels per day by 2020 and we went ahead with our plans. When the prices fell we decided not to change our strategy because it was seen only as a short term issue and we believed soon a recovery would happen. Luckily I think we are able to say the worst is over and now we are seeing some stability in oil prices that we are comfortable with (70 to 80 dollars a barrel) for our plans to fall into place. What is your opinion regarding the future of oil? Is there enough to cater to the world’s needs? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: In my personal opinion I think that the demand of energy is directly linked with economic development. If we are talking about the economic development of the entire world then there is a definite need for energy from all sources in order to cope with the growth. I believe fuel, oil, gas, nuclear, renewables, coal will all be needed although oil will always be a major player in the energy scene. We need to also be environmentally responsible and adhere to the environmental legislations whether its clean up or other environmental measures.

“Recently we reached an agreement with Shell to help assist us in the major discovery of gas.”

You have a research team dedicated to capturing carbon and you are working on initiatives to develop solar energy. Can you elaborate and do you see yourselves in the future becoming a renewable energy company? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: This is in our 2030 strategy as a part of being more environmentally conscious and addressing renewable energy in order to meet the increased demand for energy. There has been a very rapid increase for power and the demand for energy will more than double in the next ten to fifteen years and this will be a challenge we need to meet in an environmentally friendly manner. We are going to look at renewable sources of energy- solar energy in particular due to the abundance of sun in this part of the world. The economic benefit from this is that every BTU of energy that we can use from renewable sources frees up oil for export. Are you going to play a major role in the future as a major exporter of gas or will you only cater to your domestic needs and power generation? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: Realistically i think it will only cater to our domestic needs although we have been making discoveries and have undertaken a major aggressive exploration program to go after deep gas reserves. We are very optimistic we will be able to find additional reservoirs of gas, however. Although I donâ&#x20AC;&#x2122;t think we will become major exporters, we are exporting LPG extracted from natural gas in small amounts and this will increase as we increase our production. What is your long term vision for Kuwait Oil Company for 2030 and what is next? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: The 2030 strategy for Kuwait Oil Company

calls for four million barrels a day capacity for production that is to be sustained between 20202030-. For non-associated gas we plan to produce one billion standard cubic feet per day by 2015. The additional exploration activities will hopefully allow us to produce another 1.5 billion cubic feet per day to total 2.5 billion standard cubic feet per day by 2030. This is our vision. What are your worries for the future? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: The major challenge that we have is gas. We see the energy demand in Kuwait rapidly increasing and the gas has great value for the country. During peak demand time in the summer due to power consumption we are importing energy and this is a concern. Additionally, it is cleaner for the environment than the fuel we are burning and also, in the non associated gas production we are not limited by OPEC and we can produce what we want to produce. We can replace the oil that is burned and consumed by power plants to free it for export. Another important challenge in Kuwait that is national workforce development from leadership, to experts and to operators ,as we are dealing with the wealth of the country. As an ambassador to your country and with Kuwait Oil Company being one of the most important companies in Kuwait and even globally, what is your final message to our audience about Kuwait? Kuwait Oil and Gas, Kuwait Oil Company (KOC), Chairman and Managing Director, Sami Al Rushaid: We would certainly welcome anyone from anywhere in the world to come to Kuwait. We are not biased towards the west or the east and we welcome all nationalities. I think visitors will find that the people of Kuwait are friendly and Kuwait is easy to adjust to living in and can consider Kuwait their second home.

â&#x20AC;&#x153;Recently we reached an agreement with Shell to help assist us in the major discovery of gas.â&#x20AC;?

303 23

interviewoneonone

CHAMBER OF ONE OF THE WORLD’S BUSIEST CITIES HE Hamad Buamim was appointed as a member of the Board of Directors of Dubai World in December 2010 and is the Director General of Dubai Chamber of Commerce & Industry, a post he has held since November 2006. He was the Secretary General of Dubai Economic Council, a corporate manager in HSBC Bank, a lecturer of Finance & Banking in the UAE University’s College of Business & Economics, and a Senior System Engineer in Dubai Electricity & Water Authority, which he joined in 1996 at the start of his professional career. HE Buamim is currently Vice Chairman of the World Chambers Federation – ICC in Paris, a member of the Board of Emirates Competitiveness Council, a member of the Board of Directors of Emirates-NBD Bank, Chairman of Emirates Financial Services, Chairman of National General Insurance and Board Member of Union Properties.

H.E HAMAD BUAMIM

DIRECTOR GENERAL OF THE DUBAI CHAMBER OF COMMERCE & INDUSTRY

How is the Chamber’s strategy aligned with the 2012- 2016 Federation of the UAE Chambers of Commerce vision? HAMAD BUAMIM The Dubai Chamber was established in 1965 through a decree issued by the late Ruler of Dubai, Sheikh Rashid Bin Saeed Al Maktoum. He realized the important role that a chamber of commerce would play in supporting the economy, and since then the Dubai Chamber has become a major business organization in the UAE. Over the past decade, company profiles have altered dramatically and are now much more sophisticated than what they were 10 years ago. By updating and refining our products and services in line with differing business needs, we have been able to attract new members and better support and protect the wider business community. Our offices are located in key commercial areas in order to make our products and services more accessible to the business community. They can be found in the Jebel Ali Free Zone (Jafza), Dubai Airport Free Zone (DAFZ), and Al Awir area, as well as at the Department of Economic Development (DED), Al Twar Center, and Dubai Industrial City. Our services have also changed to become more complex as doing business becomes more sophisticated. Not only do we offer documentation services for traders, we also provide legal advice and support, business networking opportunities, and economic research to the entire business community. At the same time, we are helping companies meet international standards of sustainable business through our Center for Responsible Business and resolve commercial disputes in an amicable way through the Dubai International Arbitration Centre (DIAC). Helping our members meet best international practice is part of Dubai Chamber’s strategy. Therefore, we are closely aligned with the strategy of the Federation of the UAE Chambers of Commerce and Industry (FCCI) for the 20122016- period. Earlier in 2012, we hosted and participated in the first workshop for the FCCI team responsible for developing the proposed new strategy. The project is important, and the Dubai Chamber will support and contribute in any way possible to accelerate the development of the strategy, which aims to develop technical and administrative policies based on best international standards. As one of the world’s top 10 business destinations, what are the factors that lend credibility to Dubai as an international business hub? Dubai has a number of benefits for international businesses, which help attract new companies every year from all corners of the globe. These include the city’s strategic location in the center of the map. Dubai offers easy access to several major consumer markets and as such is one of the world’s leading re-export destinations. At the same time, Dubai offers companies a safe and stable environment to do business. The city is geared toward helping companies prosper with business-friendly laws, modern infrastructure, and a diverse and predominantly young workforce. One attraction for international businesses specifically is free zones, which are tax free and allow for full ownership and profit repatriation.

Which regions have you identified as holding significant potential? The main markets we have identified include India, CIS countries, Africa, and Latin America. Dubai historically has strong ties with India and parts of Africa, and we are working hard to build stronger links with many countries, particularly in eastern Africa, by sending overseas delegations and hosting the Eastern African Community Forum in Dubai in October 2012. Meanwhile, Latin American and CIS countries are witnessing incredibly strong growth, and we believe that our members could benefit from the opportunities being created in those parts of the world. What trends have you witnessed in terms of exports and companies applying for membership? Our members’ exports in 2011 reached AED246 billion, which is 14.5% higher compared to 2010. This total is also higher than the peak in 2008, which was AED213 billion. This expansion demonstrates the strength of the trade sector and its importance for Dubai’s economic growth. As for our membership trends, last year we added 10,092 new members, which took our total membership to over 128,000. This was an increase of 8.5%, which points toward the economic growth that Dubai witnessed in 2011. We have seen our membership increase again to over 130,000 in 1Q2012, as more companies choose to set up in the Emirate. What benefits will the ATA Carnet system bring to Dubai, and what motivated the initiation of the system at this stage? The UAE began accepting ATA Carnets for goods for use at trade fairs, shows, and exhibitions on April 1, 2011. The Dubai Chamber is the national guaranteeing and issuing agency of ATA Carnets in the UAE. Known as a “passport for goods,” the ATA Carnet is an international customs document that permits the duty-free and tax-free temporary import of goods for up to one year. The UAE is the first country in the GCC to implement this system, and we are encouraging our partners across the region to also adopt it. In Dubai, there are many trade shows every year, and the adoption of this system will make importing products and goods for display much simpler and more affordable. This will be a major boost for companies working in the sector. We firmly believe it will help attract more exhibitors to Dubai, which was one reason behind our motivation to use the ATA Carnet system.

What lessons were learned from the global liquidity crisis, and how far along the road to recovery would you say Dubai’s economy is? The main lesson learned was about stability. We need to move away from the boom and bust years and focus on achieving sustainable growth over a longer period. And this is not just a lesson for Dubai—this applies to every economy in the world. In terms of recovery, Dubai has come a long way. The country’s key economy drivers trade, tourism, logistics, and financial services have bounced back to their pre-crisis levels. That is not to say we are out of the woods yet, especially considering the financial pressures that continue globally. However, we are certainly on a more even footing. Where in particular can further reforms be implemented to facilitate economic growth? A number of new laws and updates to existing legislation are currently being studied by the UAE authorities, which will help drive business growth. These include a draft of the UAE bankruptcy law, to be ready by the end of 2012. The law is aimed to enable listed and family-owned businesses in the UAE to be rescued, rather than having to go through lengthy liquidation or bankruptcy proceedings should they fall into financial difficulty. This will have the effect of easing restructuring and offering out-of-court negotiations, which in turn will help attract more overseas investments. What is your outlook for 2012 for the Chamber’s activities and the wider economy? In 2012, Dubai Chamber will focus its efforts on enhancing business relations with key emerging markets in India and Africa. In October 2012, we will host the Eastern African Community Forum in Dubai to help build bridges and connect our members with interested companies overseas. This follows delegation visits to Surat and Ethiopia. Generally, we anticipate Dubai’s economic growth to be around 3%-4% in 2012

303 23

globalprespectives

PRESIDENT JAMES MICHEL

PRESIDENT OF THE REPUBLIC OF SEYCHELLES

James Alix Michel is the third President of the Republic of Seychelles, having been elected to office in July 2006 and reelected for a second term in May 2011. A keen educationalist, President Michel was directly involved in the creation of the University of Seychelles. At the establishment of the university on 17th September 2009, he was named its chancellor. One of his greatest achievements as President has been the revitalization and reform of the Seychelles economy. In October 2008 he embarked on an economic reform programme, undertaken with vigor and far-reaching impact, unprecedented in Seychelles history. As President, Mr. Michel has expanded the Seychelles protected areas to more than 50% of the countryâ&#x20AC;&#x2122;s land territory, making Seychelles the first country in the world to do so. As co-chair and founder of the Global Island Partnership, he is an active advocate of sustainable development and the leadership role of islands at the global level. President Michel is the recipient of several international awards and decorations, including the UNESCO Gold Medal of the Five Continents in recognition of his work to promote the ideals of peace, tolerance and his work to sensitize the international community about the vulnerability of Small Island Developing States, the Sustainable Leadership Award of the Delhi Sustainable Development Summit 2013, the Most Innovative People Award (for Natural Innovation) and a Honorary Doctorate from TERI University.

100

BRINGING SUSTAINABILITY IN SMALL ISLANDS STATES

“The life-giving reef systems in the world are depleting. Weather patterns are changing. Islands do not have the hinterland to save our nations from coastal erosion and rising sea level.” One year into your 2nd elected term in office. How would you compare the Seychelles of today with the Seychelles of 2004 when you first took office? what was your first priority when you assumed office? We are striving to build a New Seychelles. This is my rallying call to the nation. It is with humility that I make a few comparisons. In 2004 Seychelles was emerging from 25 years of heavy investments in the social sector and infrastructure. At the same time we were consolidating our multi-party democracy following the re-introduction of political pluralism. Not all of our foreign exchange earnings were reaching the commercial banks. This caused shortages -- and we are a nation of imports. We had accumulated foreign debt because of the expenditures in the future of our newly independent nation. I said in my inauguration speech in April 2004 that I had confidence in the great potential of our country and its people. We had reached a stage in the development of our small republic. We now have to climb new steps. There was the need to work together to harness this potential. We wanted to realise great things for Seychelles. My first priority when I assumed office was to meet with the various stakeholders in our society, among them the economic operators, the non-governmental organisations, youth leaders, the churches and the opposition political parties. I also travelled around the country told hold consultative town-hall meetings with the grassroots. It was important to bring our people together to work for unity, peace, harmony, stability and prosperity. I had to reassure our people that my government would work to preserve the valuable socio-economic foundation we laid during the first two decades of independence. I needed the support of all to steer Seychelles to a new phase of development, where the private sector creates the country’s economic wealth; where all who is able is productive contributes and

benefits. Eight years later Seychelles is not experiencing shortages of goods. The parallel foreign exchange market is the past. Seychelles has its own university. The entrepreneurial spirit is blossoming. The economy is growing at 3% per annum. We have restructured major Stateowned enterprises and continue with the privatization programme. We have a policy of zero-tolerance of corruption. Seychelles is extending its cooperation and friendship network worldwide with its active-diplomacy initiative. This provided us enormous international support during our economic reform undertaking. We have greater fiscal discipline. After the vast investments in social sector and infrastructure in order to render our independence successful, and now with the achievements of the economic reform programme and more educated workers joining the many employment opportunities, I see the realization of the New Seychelles. You have spoken about the need to empower the people of your country. How did you try to do this? Have you been able to achieve this? The basis of empowerment is the education of our people. For a long time education took the lion’s share of the national budget. Through universal education we give equal access to the opportunities of a better life. It is the first big step in empowerment. Now we want our educated people to seize the many opportunities in life. There are many. Government is facilitating access to credit to help people to start small businesses. We also want to help them to grow. Employment possibilities abound. We want our own people to be responsible for their lives, to do productive work, to create wealth and fill the many posts that are now occupied by

101

expatriates. We want all our people to become the real owners of their countryâ&#x20AC;&#x2122;s development. It is happening in the tourism industry. The New Seychelles we are building fosters participation by all citizens in the development. It is empowerment when government offers shares to the staff members and ordinary citizens during the privatization process of a parastatal. That is why we are successful. We are enhancing the community spirit through support we give to NGOs, in order to facilitate their work. We are boosting the culture volunteerism, which empowers people to care for one another, and to give a helping hand in building a better. Perhaps the biggest empowerment project, ongoing now, is giving the people in the districts more say in running the affairs of their communities. It is based on a local government model. I believe that people in the districts know their neighbourhoods better, and they are the ones who can make good decisions on behalf of their communities. Empowerment has many facets. It is a tool to develop a strong sense of belonging, to foster unity, build a caring society and boost our productive capacity. Your Excellency, you have been recognized by UNESCO and other international institutions for your contributions towards sustainability and environmental conservation of your country. Indeed Seychelles is said to be a world leader environmental protection. What can other countries learn from the Seychelles example? The environment is the giver of life, wherever we may be living on our planet. That is why it is of utmost importance that we value the environment and fit our development into it. Although Seychelles is a fast developing country, and very small in land area, almost half of our territory, including whole islands, is preserved. We have strict environmental guidelines for development. We are happy we have been able to keep the greenery of our mountains, the whiteness of our sandy beaches and the turquoise colour of our sea.

102

We feel our future, and that of our children and grandchildren, are more secure. From our example, other countries can learn that although environmental protection costs, it is the price we pay for our very existence. There is no free lunch for human beings. Environment is a great asset. The more we invest in its protection, the more we will derive from it for generations to come. We must also involve all the people. We have environmental impact meetings with the residents in communities to host a major development project. Fishermen are involved in the monitoring of species under threat. All countries can find the balance between development and environmental protection. We need to be courageous and convincing in our approach. Local knowledge, local feelings, play a crucial role. You have championed the causes of Small Island Developing States during your tenure. Is the world listening to the islands and their challenges, especially in the case of climate change? What more can be done? Iâ&#x20AC;&#x2122;m not sure if the world is paying enough attention to the plight of small island developing states. What I know is that Seychelles and SIDS will continue to speak loud about the climate change challenges we face. Seychelles has appointed a climate change ambassador at the United Nations to make our voice heard. For as long as there is no reduction in pollution emissions, we may say the world is not listening. The life-giving reef systems in the world are depleting. Weather patterns are changing. Islands do not have the hinterland to save our nations from coastal erosion and rising sea level. Still I am optimistic. The Qatar environmental meeting of November and December last year recognized the need to strengthen international cooperation and expertise in order to understand and reduce loss and damage associated with the adverse effects of climate change. Elsewhere we read that the demand for fossil fuels is reducing, and that there is competition in tapping

renewable energy sources. More can be done. We need faster actions. We have to admit that our pollution is affecting the environment. Big polluters should take responsibility for endangering the habitats of island nations. We in Seychelles know it is possible to sustain a high standard of living without affecting the environment. The world needs to adapt, fast, to an environment friendly type of development. You have won two elections, will you be aiming for a third one in 2016? How do you wish your people to remember your legacy? The constitution of the Republic of Seychelles allows for a person to serve up to three terms as President. The New Seychelles -- a country with a modern economy, a hardworking people, with a compassionate society and a united people -- is taking shape. This is what I pledged I would be doing for the Seychellois people when I first assumed office as President in April 2004. Is the work accomplished? It will be up to the people and party to decide when the time comes. In 2020 we will celebrate 250 years of human settlement in Seychelles. What I also told the people is that when we mark the anniversary we want to celebrate it as a people who have achieved progress in all aspects; as a people who have made economic and material progress, and also social and spiritual progress; as a united people who are prosperous and happy, who are a true example to the world. This is the legacy I wish to leave behind with the Seychellois people. Finally, what do you believe is the most important quality that a leader of a nation needs to possess in order to be successful? The leader of a nation has to have firm belief in the potentials of his people, accept that all members of the nation matter equally, listen to them and involve them in decision-making and development. The leader has to make available the space for people to realize their full potentials in nation-building.

globalprespectives

SUCCESSFUL PEOPLE START BEFORE THEY FEEL READY By James Clear

“If there was ever someone who embodied the idea of starting before they felt ready to do so, it’s Branson.”

James Clear: An entrepreneur, weightlifter, and travel photographer. He writes about habits and strategies that make it easier to live a healthy life, and share photos and stories on his quest to live healthy around the world.

104

In 1966, a dyslexic sixteen–year–old boy dropped out of school. With the help of a friend, he started a magazine for students and made money by selling advertisements to local businesses. With only a little bit of money to get started, he ran the operation out of the crypt inside a local church. Four years later, he was looking for ways to grow his small magazine and started selling mail order records to the students who bought the magazine. The records sold well enough that he built his first record store the next year. After two years of selling records, he decided to open his own record label and recording studio. He rented the recording studio out to local artists, including one named Mike Oldfield. In that small recording studio, Oldfield created his hit song, Tubular Bells, which became the record label’s first release. The song went on to sell over 5 million copies. Over the next decade, the young boy grew his record label by adding bands like the Sex Pistols, Culture Club, and the Rolling Stones. Along the way, he continued starting companies: an airline business, then trains, then mobile phones, and on and on. Almost 50 years later, there were over 400 companies under his direction. Today, that young boy who dropped out of school and kept starting things despite his inexperience and lack of knowledge is a billionaire. His name is Sir Richard Branson. How I Met Sir Richard Branson Two weeks ago, I walked into a conference room in Moscow, Russia and sat down ten feet from Branson. There were 100 other people around us, but it felt like we were having a conversation in my living room. He was smiling and laughing. His answers seemed unrehearsed and genuine. At one point, he told the story of how he started Virgin Airlines, a tale that seems to capture his entire approach to business and life. Here’s the version he told us, as best I can remember it: I was in my late twenties, so I had a business, but nobody knew who I was at the time. I was headed to the Virgin Islands and I had a very pretty girl waiting for me, so I was, umm, determined to get there on time. At the airport, my final flight to the Virgin Islands was cancelled because of maintenance or something. It was the last flight out that night. I thought this was ridiculous, so I went and chartered a private airplane to take me to the Virgin Islands, which I did not have the money to do. Then, I picked up a small blackboard, wrote “Virgin Airlines. $29.” on it, and went over to the group of people who had been on the flight that was cancelled. I sold tickets for the rest of the seats on the plane, used their money to pay for the chartered plane, and we all went to the Virgin Islands that night. I took this photo right after he told that story. A few moments later I stood shoulder–to–shoulder with him (he’s about six feet tall) and thanked him for sharing some time with us.

Here’s what I think makes all the difference: Branson doesn’t merely say things like, “Screw it, just get on and do it.” He actually lives his life that way. He drops out of school and starts a business. He signs the Sex Pistols to his record label when everyone else says they are too controversial. He charters a plane when he doesn’t have the money. When everyone else balks or comes up with a good reason for why the time isn’t right, Branson gets started. Successful people start before they feel ready. If there was ever someone who embodied the idea of starting before they felt ready to do so, it’s Branson. The very name of his business empire, Virgin, was chosen because when Branson and his partners started they were “virgins” when it came to business. Branson has started so many businesses, ventures, charities, and expeditions that it’s simply not possible for him to have felt prepared, qualified, and ready to start all of them. In fact, it’s unlikely that he was qualified or prepared to start any of them. He had never flown a plane and didn’t know anything about the engineering of planes, but he started an airline company anyway. If you’re working on something important, then you’ll never feel ready. A side effect of doing challenging work is that you’re pulled by excitement and pushed by confusion at the same time. You’re bound to feel uncertain, unprepared, and unqualified. But let me assure you of this: what you have right now is enough. You can plan, delay, and revise all you want, but trust me, what you have now is enough to start. Who you are right now is good enough to get going. We all start in the same place: no money, no resources, no contacts, no experience. The difference is that some people — the winners — choose to start anyway.

“You can plan, delay, and revise all you want, but trust me, what you have now is enough to start.”

What’s the Difference Between Branson and Everyone Else? After speaking with our group, Branson sat on a panel with industry experts to talk about the future of business. As everyone around him was filling the air with business buzzwords and talking about complex ideas for mapping out our future, Branson was saying things like: “Screw it, just get on and do it.” Which was closely followed by: “Why can’t we mine asteroids?” As I looked up at that panel, I realized that the person who sounded the most simplistic was also the only one who was a billionaire. Which prompted me to wonder, “What’s the difference between Branson and everyone else in the room?”

105

lifestyle

THE NEW MBW M5 SEDAN Best of Both Worlds

Sporty performance and sporty appearance. Exclusive M aerodynamic components, M light-alloy wheels and the BMW Individual high-gloss Shadow Line isn’t everything the M Sport package has to offer. The interior is improved by the addition of sport seats for the driver and front passenger, elegant interior trim in Palladium Grey and the BMW Individual roof liner Anthracite. The leather steering wheel, the M footrests as well as the M door sill finishers with chrome inserts and BMW M emblem round off the sporty and high-quality character of the BMW 5 Series Gran Turismo. There are sport sedans, and then there‘s the BMW M5. No other car in recent memory has been able to represent the ideal for this segment as strongly as the Bimmer. For each of its five generations,

106

the M5 has impressively blended sports car performance, sedan utility and luxury ambience. The M5 is a product of BMW‘s performance-tuning M Division. It‘s based on the 5 Series sedan, and historical calling cards include a unique and more powerful engine, a sport-tuned suspension, more powerful brakes, special wheels and tires, and aerodynamicsenhancing bodywork. Though the most recent BMW M5 is the most powerful of the group, any M5 still represents a fantastic choice for a luxury sport sedan. Even M5s from the 1980s and ‚90s were significant performers for their day, though are much harder to find because of their rarity.

The current BMW M5 is all-new for 2012. Like the 5 Series upon which it is based, this M5 is larger than its predecessor, with an improved interior and more traditional BMW styling. Compared to the last M5, however, the current one swapped out the old V10 for a twin-turbo V8, while gaining a more advanced automated manual transmission, a limited-slip rear differential, upgraded brakes and enhanced adjustable drive settings. Unlike the regular 5 Series, the M5 sticks with more responsive and communicative hydraulic power steering rather than electric. Underneath the hood, the M5 packs a twin-turbo 4.4-liter V8 good for 560 horsepower and 501 pound-feet of torque. Rear-wheel drive and a seven-speed dual-clutch automated manual are standard, while a six-speed manual is available. Unlike the high-strung engines that came before it, this turbocharged lump enjoys a mountain of low-end torque and doesnâ&#x20AC;&#x2DC;t let up as the revs build. This is an astonishingly quick car.

How the M5 drives is largely determined by which of the myriad drive settings you choose. Steering weight, suspension firmness, throttle response, transmission shift programming and stability control can all be altered to your exact desire. This differs from regular BMW models with such adjustable settings that conform to three or four combinations programmed by BMW. The overall result is a car that can be docile for a commute and a vicious, corner-attacking machine on a winding road. As always, the current BMW M5 manages to be a high-performance machine that can do double duty as an everyday conveyance. There are several other cars that do a similar trick, but the M5 is the car that arguably inspired them all. Its engine may be a departure from past models, and its size may make it seem a bit unwieldy at times, but thereâ&#x20AC;&#x2DC;s no denying the current M5 maintains its high-speed cred.

107

lifestyle

THE ALL-NEW RANGE ROVER VOGUE For a seamless appearance, the Range Rover Vogue’s exterior features an imposing front grille which combines Dark Atlas and Atlas as well as body-coloured front bumper, vent blades and door handles. A wide choice of interior colours and exterior paints, allow for personalisation and there’s also a selection of striking 20, 21 and 22 inch alloy wheels, with 20 inch 5 Split Spoke wheels as standard. Inside, the interior is upholstered in Oxford leather which provide powered seats, with driver’s memory and front and rear heated seats for additional convenience. The luxury experience is enhanced with a state-of-the-art Meridian* Sound System providing stunning sound quality with 380W. Range Rover Vogue takes capability to new heights with a powerful, state-of-the-art LR-V8 5.0 litre Supercharged Petrol engine. Paired with an eight-speed automatic transmission, the Vogue delivers an exceptional balance of power, torque and improved economy.

108

The all-new Range Rover, the world‘s most refined and capable SUV, has notched up 10 international awards in just three months since production began. The world‘s first SUV with a lightweight all-aluminium body, the new Range Rover takes luxury and capability to a new level, with even greater refinement and enhanced performance and handling on all terrains. The new Range Rover also heralds significant advances in sustainability. The most recent honour came from the AUTOBEST group of motoring writers, naming the all-new Range Rover ‚TECHNOBEST 2012‘. Recent awards also include ‚Dream Machine‘ from Autoweek, ‚Luxury Car of the Year‘ from both What Car? and Top Gear magazines and ‚Best Cars - Import Category‘ from Auto Motor und Sport. The model was also crowned ‚4x4 Category Winner‘ in The Sunday Times‘ Top 100 Cars 2012, among others.

Land Rover Global Brand Director, John Edwards, said: “We are proud of the recognition the Range Rover is receiving from international motoring organisations and publications. It is a fantastic achievement and a great endorsement for the model, which has only been in production for three months. “Its revolutionary lightweight construction is the result of unprecedented investment in technology and engineering which makes it the most refined, most capable Range Rover ever. It is enormously satisfying to see that international judges, as well as customers, are recognising this too.” The all-new Range Rover was launched last October to critical acclaim and is the world‘s first aluminium monocoque SUV, which is around 420kg lighter than the outgoing model. The Range Rover is built at Land Rover‘s new low-energy Solihull facility and there is already strong demand across global markets.

109

lifestyle

WATCHES MONTBLANC NICOLAS RIEUSSEC RISING HOURS

The hour display of this watch is made possible by Montblanc‘€™s new Calibre MB R220, which has a patented mechanism consisting of two rotating discs positioned one atop the other, to show not only the individual 12 hours, but to also indicate whether its day or night. The Arabic numerals 1 to 12 are on the upper disc, which is situated above the bi-color day/night disc. The 12-hour disc rotates continually, while the day/night disc turns in intervals and at variable speeds to produce the desired color change (blue for the night, black for the day) in the cutout numerals. This motion is controlled with the aid of a Maltese cross-shaped mechanism consisting of two cam-like wheels. In addition to this double-disc mechanism, four other disc displays rotate. The day of the week is shown in a window at the 9 o‘clock€ and the date appears in an aperture at the 3 o‘clock This is the latest version of the collection named after the inventor of the chronograph.

A. LANGE & SOHNE GRAND COMPLICATION The German watch brand has developed a timepiece with a host of complications that include chiming mechanism with grand and small strikes; minute repeater; a monopusher type split-seconds chronograph, with minute counter and rattrapante function and jumping seconds accurate to a fifth of a second; perpetual calendar with date, day of week, month in four-year cycle; and moon phases. The movement is a Lange manufacture Calibre L1902, manually wound. The white enamel dial reveals a railway-track minute scale and the four characteristic, symmetrically arranged subsidiary dials. This exclusive collectors‘ item is housed in a 50mm pink gold case comes. It is available in a limited edition of six watches.

110

FORTIS MARS 500 CHRONOGRAPH

So tough it’s worn over the space suit, this is the official watch of the Mars 500 cosmonauts. It’s got a 42mm titanium case, automatic movement with 25 jewels and an Incabloc shock absorber. It’s also water-resistant to 200m, if you happen across a lake on your red planet travels.

TISSOT LUXURY AUTOMATIC

If the standard 36 hours of power reserve doesn’t cut it, the Swiss made timepiece features new Powermatic 80 automatic movement which means 80 hours before it needs to be rewound. Made from stainless steel, the Automatic is also waterproof up to 50m, which is perfect for any impromptu diving excursions.

OMEGA SEAMASTER

What‘s cooler, astronauts or James Bond? It‘s the stuff playground arguments are made of, but when it‘s a toss up between Omega‘s Speedmaster moonwatch or the timepiece flaunted by Britain‘s sheckshiest shecret agent, we reckon its an even match. Features a sapphire crystal face for scratch resistance and a body waterproof to 600m. Does not feature a laser or remote detonator.

OMEGA SEAMASTER PLANET OCEAN

Worn by Royal navy Commander (retired) James bond in fi lms since 1995, this luxe timepiece is water resistant to 600m and packs scratchresistant sapphire crystal glass on both front and back. It also boasts a helium escape valve for when your nemesis locks you in a deep-sea pressure chamber.

AUDEMARS PIGUET ROYAL OAK OFFSHORE GRAND COMPLICATION The mechanical heart of this 44mm timepiece is its three advanced functions, forming what is considered in the industry as the basis of a Grande Complication movement. Its traditional self-winding movement combines minute repeater, split-second chronograph and perpetual calendar functions. In addition to showing legal or civil time, it‘s also equipped with a minute repeater mechanism, enabling it to sound the hours, quarters and minutes on demand. And it houses a perpetual calendar complication which also displays lunar cycles. Last but not least, it affords the possibility of performing timing operations and reading off intermediate or “split” times due to the split-second complication, an authentic Audemars Piguet signature in its Grande Complication models since 1882. The self-winding Calibre 2885 has 648 parts. It is available in a Titanium case (pictured) or an 18K pink gold case. Both models are limited to three pieces each.

ROGER DUBUIS EXCALIBUR QUATUOR

This deep grey watch is made of silicon, chosen for its low weight and its incomparable hardness. It is half the weight of titanium, which is half the weight of steel, yet it is four times harder. The brand also boasts a technological advancement in which four carefully positioned sprung balances work in pairs to compensate immediately for the rate variations caused by the changes in position of the watch when worn. A classic watch operating at a frequency of 4 Hz is considered to be highly precise. But the Excalibur Quatuor operates at a frequency of 16 Hz. As each balance oscillates four times per second, the frequency of the watch is multiplied by four as the balances do not oscillate simultaneously. The timepiece is limited to a production of three pieces. There is a pink gold version of the watch that has a run of 88 pieces.

111

destinationtravel

THE SEYCHELLES THREE HOUR AND A HALF FLIGHT FROM DUBAI

Sailing, diving, fishing and relaxing are the main activities for visitors to the 155 islands of this Indian Ocean archipelago. Mahé, Praslin and La Digue are the most popular islands. Mahé boasts 65 silver beaches, plus an array of restaurants, cafés, bars and casinos in the tiny capital, Victoria. The Seychelles are home to UNESCO-designated sites, coral atoll Aldabra and Vallée de Mai, called the Garden of Eden. Creole is the main language, but English and French are widely spoken.

112

This increasingly popular tourist destination continues to attract more and more visitors from all corners of the globe, seeking the holiday of their dreams. Visitors are spoiled for choice when it comes to the Seychelles. The islands each have their own unique charm be it one of the three main islands or one of the remote private resorts, there is sure to be something to suit everyone’s taste. A burgeoning array of new luxurious hotels and exciting new investment projects herald a new dawn of opportunity in the country. Today, more than ever, Seychelles has the possibility of realizing its huge potential as a destination offering tranquility and quality with value for money - all in surrounds of breathtaking natural beauty. Blessed with the unrivalled diversity of granite and coralline islands, a vibrant Seychellois Creole culture and a reputation for political stability and social harmony, Seychelles has its sights set on bright, new horizons. With nearperfect weather, no cyclones and a complete absence of dangerous and poisonous creatures, Seychelles lives up to its reputation of being a modernday ‘Garden of Eden.’ The Republic of Seychelles comprises 115 islands occupying a land area of 455 km² and an Exclusive Economic Zone of 1.4 km² in the western Indian Ocean. It represents an archipelago of legendary beauty that extends from between 4 and 10 degrees south of the equator and which lies between 480km and 1,600km from the east coast of Africa. Of these 115 islands, 41 constitute the oldest mid-oceanic granite islands on earth while a further 74 form the low-lying coral atolls and reef islands of the Outer Islands. The granitic islands of the Seychelles archipelago cluster around the main island of Mahé, home to the international airport and the capital, Victoria, and its satellites Praslin and La Digue. Together, these Inner Islands form the cultural and economic hub of the nation and contain the majority of Seychelles’ tourism facilities as well as its most stunning beaches. Seychelles‘ 115 islands fall under two distinct groups. The tall granite, Inner Islands cluster mainly within the relatively shallow Seychelles‘ plateau, 4° south of the equator and roughly 1800 km. distant from the east coast of Africa while the low-lying coralline cays, atolls and reef islands of the Outer Islands lie mainly beyond the plateau up to 10° south of the equator. These Outer Islands are divided into five groups: the Amirantes group lying 230km distant from Mahé, the Southern Coral Group, Alphonse Group, Farquhar Group and finally the Aldabra Group, some 1150km from Mahé. Seychelles is a living museum of natural history and a sanctuary for some of the rarest species of flora & fauna on earth. With almost 50% of its limited landmass set aside as national parks and reserves, Seychelles prides itself on its record for far sighted conservation policies that have resulted in an enviable degree of protection for the environment and the varied ecosystems it supports. Nowhere else on earth will you find unique endemic specimens such as the fabulous Coco-de-mer, the largest seed in the world, the jellyfish tree, with only eight surviving examples, the Seychelles’ paradise flycatcher and Seychelles warbler. Seychelles is also home to two U.N.E.S.C.O World Heritage Sites: Aldabra, the world’s largest raised coral atoll and Praslin’s Vallée de Mai, once believed to be the original site of the Garden of Eden. From the smallest frog to the heaviest land tortoise and the only flightless bird of the Indian Ocean, Seychelles nurtures an amazing array of endemic species within surrounds of exceptional natural beauty.

113

The Vallée de Mai Located on the granitic island of Praslin, the Vallée de Mai is a 19.5 ha area of palm forest which remains largely unchanged since prehistoric times. Dominating the landscape is the world‘s largest population of endemic coco-de-mer, a flagship species of global significance as the bearer of the largest seed in the plant kingdom. The forest is also home to five other endemic palms and many endemic fauna species. The property is a scenically attractive area with a distinctive natural beauty. The property contains a scenic mature palm forest. The natural formations of the palm forests are of aesthetic appeal with dappled sunlight and a spectrum of green, red and brown palm fronds. The natural beauty and near-natural state of the Vallée de Mai are of great interest, even to those visitors who are not fully aware of the ecological significance of the forest. Shaped by geological and biological processes that took place millions of years ago, the property is an outstanding example of an earlier and major stage in the evolutionary history of the world‘s flora. Its ecology is dominated by endemic palms, and especially by the coco-de-mer, famous for its distinctively large double nut containing the largest seed in the plant kingdom. The Vallée de Mai constitutes a living laboratory, illustrating of what other tropical areas would have been before the advent of more advanced plant families.

“ITs ecology is dominated by endemic palms, and especially by the coco-demer, famous for its distinctively large double nut containing the largest seed in the plant kingdom.”

114

“One of the largest congregations of nesting green turtles in the Indian Ocean.”

ALDABRA UNESCO WORLD HERITAGE SITE Aldabra was designated a World Heritage Site by UNESCO in 1982 as a prime example of a raised coral atoll and is significantly less disturbed than most other atolls in the Indian Ocean and elsewhere in the world. Aldabra’s unique ecosystems and species make it ecologically and scientifically valuable. Aldabra is the largest raised coral atoll on Earth and is significantly less disturbed than most other atolls in the Indian Ocean and elsewhere in the world. Aldabra is a refuge for many endangered species. These include the giant tortoise, one of the largest congregations of nesting green turtles in the Indian Ocean; the world’s second largest breeding population of greater and lesser frigate birds (Fregata minor and Fregata ariel); the last flightless bird species in the Indian Ocean - the white-throated flightless rail (Dryolimnas cuvieri aldabranus); and a number of endemic taxa of plants and animals.

For more information: Seychelles Tourism Board (STB) PO Box 1262 - Victoria, Mahé - Seychelles Tel: +248 4 67 13 00 - Fax: +248 4 62 06 20 - www.seychelles.com

115

destinationtravel

WELCOME TO PARADISE Blessed with the unrivalled diversity of 2000 coralline islands Maldives has the reputation for proving holidays of a dream.

â&#x20AC;&#x153;Maldives resorts are known as some of the best holiday resorts in the world.â&#x20AC;?

Maldives, officially the Republic of the Maldives, and also referred to as the Maldive Islands, is an island nation in the Indian Ocean consisting of a double chain of twenty-six atolls, orientated north-south, that lie between Minicoy Island (the southernmost part of Lakshadweep, India) and the Chagos Archipelago. The chains stand in the Laccadive Sea, about 700 kilometres south-west of Sri Lanka and 400 kilometres south-west of India. Maldives has deep blue seas, turquoise reefs, white sandy beaches and palm trees. It is also a place full of character, where its people have long spent their days languishing in the very essence of idyll living. While it is the perfect place to sit on a beach and watch a sunset with a cocktail balanced on your hand, it is also a geographical marvel, knowing that there are thousands of fish swimming around the vivid corals just a few feet away from where you sit.

116

Maldives resorts are known as some of the best holiday resorts in the world. One Resort in particular, Meeru Island Resort & Spa , is surrounded by a beautiful lagoon and long stretches of white, sandy beach, is the only Resort on the island of Meerufenfushi, North Male’ Atoll. It is 1200 meters long by 350 meters wide, about 90 acres. Your speedboat transfer from Ibrahim Nasir International Airport is a scenic, 55 minute ride. With an array of Garden Rooms, Beach Villas, Jacuzzi Beach Villas, Water Villas and Honey Moon Suites, Meeru Island Resort & Spa has an option for every holiday maker. Jacuzzi Water Villas are located over-the-water, in the lagoon…a short walk along your private jetty to this secluded and more spacious hideaway featuring a partial open air bathroom, an outdoor Jacuzzi and stairs into the sea. Two main “sister” restaurants, conveniently located to best serve our guests. The Farivalhu, for guests staying at the Southern end of the island and The Maalan, for guests staying at the Northern end of the island, both featuring the same “all you can eat” buffet style meals for breakfast, lunch and dinner, served in the traditional open-air, sand floor, thatch roof dining rooms with a separate table for each room. 1.5 Kilometers of Beautiful White Sand Beach, a Magnificent Lagoon with plenty of Good Snorkeling, 5 star spa facilities, 2 Sparkling Clear Fresh Water Swimming Pools overlooking the Beach with a Children’s Wading Pool are some of the attractions to this island.

For more information: Meeru Island Resort & Spa North Male' Atoll - Meerufenfushi Maldives Tel (960) 664 3157 Fax (960) 664 5946 reservations@meeru.com www.meeru.com 117

LIFESTYLE

LUXURY BOATS

ABSOLUTE 43

ABSOLUTE 56

HORIZONS OF INFINITE PLEASURE

OUTSTANDING COMFORT AND GREAT SURFACES

IPS system, hard top, and new interior designs. While maintaining the highest qualities of the range, the Absolute 43 Sport Cruiser also gives an extra boost to the engines. IPS engines , extended aft platform to enhance outdoor life, pure design for the interiors, and a hard top: with the Absolute 43STC, Cantieri Absolute launched an exclusive project, incorporating some of the highly acclaimed solutions that gave the Absolute 41 Open its success. Maintaining its top-performance features, the vessel creates a fresh way of experiencing the sea in style and elegance, with a high-tech, sporting spirit. NEW TECHNOLOGY. Ever faithful to its philosophy, Absolute introduces not only a new image but also technological innovation: the Absolute 43STC is powered by Volvo Penta engines with IPS transmission, a

system that has changed the world of power, creating a new style of navigation: greater manoeuvrability, better fuel economy, lower noise levels, absence of fumes, and minimum volume in the engine room. LIKE OPEN-AIR ROOMS. Elegant and practical exteriors. The comfortable cockpit, the precious teak that accommodate a U-shaped sofa for seven, the generously sized sun pad, the outdoor range, grill and refrigerator unit for a happy hour with friends, through to the practical locker and the concealed electrohydraulic gangway: everything in the Absolute 43 Sport Cruiser is designed to ensure maximum comfort. And to enhance the enjoyment of outdoor life, the dash extends out, while the hard top provides both privacy and a sense of freedom.

Absolute has realized an exclusive and refined 56 feet, evolution in an already important range, for the line, model and innovation, confirming his family feeling. In particularly its soft lines but with a net design, and the characteristic side with diamond surfaces are perfectly exalted in this yacht. The style of Absolute 56 Sport Cruiser arises from the Research and Development Lab of the shipyard. The superstructure has got a really aggressive ensemble, thanks to the single details, that characterizes it, and from racy lines well connected between them. The boat presents a high line of gunwale, characterized with a many portholes and purposely realized windows and dimensioned to obtain the maximum light in the inner spaces that well integrates with the totality of the design. The cockpit has been studied to offer an outstanding comfort and great surfaces on the open air.

118

The sun deck in the centre of the stern for 4 person hides a garage that could lodge a classic tender or in alternative a jetsky or a jet rib, that thanks to an easy opening that becomes lifting the garage trapdoor, could be hauled directly into the water, taken it on the sides thanks to the lateral platform sections, that contrarily remains settled. The stern platform is easily reachable from the cockpit by the two lateral access. The stern zone at the shelter of the Hard Top has been made with a circular sofa and a central extendable table, a precious plus for dinners and fresh drinks. On a side a service furniture equipped of several comforts, whom a foldaway LCD television. The side windows, that wraps the cockpit, are really wide and with a futuristic design, realized with a wise mix of lines and in the mean time well marked, that allows, to who is comfortably seated to have a view also of the panorama a side of the yacht.

ABSOLUTE 47 DESIGN OPEN AIR Someone waits for the future. Someone has already discovered the Absoluteâ&#x20AC;&#x2122;s world, and the Absolute 47 communicates the maximum of the glamour. Absolute 47 itâ&#x20AC;&#x2122;s the boat that captures for its performances , for the first-rate in relation with space/habitability , for style that puts precious details at the service of technique and design. And with a thread running that combines hi-tech and refinement, that today proposes a more versatile way to live the sea: totally freedom but in respect of privacy thanks to the Hard Top.

SEDUCTIVENESS OF PURE LINES: the new Absolute 47 shows its strong personality also in the interiors design. Here all it studied at the emblem of the comfort on board; from the Hard Top, with wide windows, to the portholes of superior largeness respect to the standard that widen the light, from the height of interiors, near to 2 mt for extend the volumes, from the bathrooms, ample, comfortable with box showers.

ESSENCE OF TECHNOLOGY the boats has been designed for using Volvo Penta engines that, with their propelling IPS technology permit to reach high performances with moderate consumption, less noisiness and absence of smokes. Moreover the joystick for maneuvering gives the mooring an agile and easy maneuver.

119

BESTHOTELSOFME

ONE&ONLY ROYAL MIRAGE, DUBAI

One&Only Royal Mirage is considered Dubai’s most stylish beach resort, where genuine care and hospitality blend with fantasy and tradition, creating an ambiance of Arabian-influenced refinement.

Representing an oasis of calm in the heart of bustling ‘new Dubai’, the resort offers understated elegance and exclusive charm with private coastline and acres of lush gardens. One&Only Royal Mirage consists of three equally distinctive properties: The Palace, the Arabian Court and the Residence & Spa. Within the elegant entrance courtyard of the Residence & Spa lies the Health & Beauty Institute. Architecturally impressive and reminiscent of the great buildings of the region, it captures the values of the environs and ensures each experience is totally distinctive and ceremonial. The Spa and Oriental Hammam offer a service that is dedicated to nurturing beauty and the pursuit of well-being. The resort features some of Dubai’s favorite restaurants, offering a variety of casual and elegant settings, such as the Beach Bar & Grill at The Palace for seafood and grills, Celebrities for international cuisine, Tagine for a truly

120

Moroccan experience and Olives for a Mediterranean buffet. The Residence & Spa offers the exclusive Dining Room, whilst the Arabian Court features Eauzone, casual yet refined with an Asian twist, and Nina, the moody and vibrant Indo-European dining venue. The Rooftop Lounge and The Jetty are among Dubai’s trendiest evening venues.

For more information: VIP contact: Olivier Louis, General Manager T: +971 4 399 9999 Jumeirah Beach, P.O. Box 37252 info@oneandonlyroyalmirage.ae royalmirage.oneandonlyresorts.com

BESTHOTELSOFME

SHANGRI-LA‘S BARR AL JISSAH RESORT & SPA, OMAN The deep turquoise blue water of the Sea of Oman is hypnotic, contrasting vividly with the majestic mountains that rise behind the resort. This is the fascination of Oman.

The deep turquoise blue water of the Sea of Oman is hypnotic, contrasting vividly with the majestic mountains that rise behind the resort. This is the fascination of Oman. The experience is elevated at Shangri-La’s Barr Al Jissah Resort and Spa, Sultanate of Oman. Three hotels await your arrival. And each gets better as you explore. Approaching Al Waha, your excitement heightens as a man-made tunnel through the mountain leads you to a sanctuary facing the Sea of Oman. Al Waha lives up to its name with several swimming pools merging to form a serene oasis. Date palms and traditional Dhofari architecture remind you that you are in Arabia. Lunchtime closes in as you head for the resort‘s focal point, Al Bandar Hotel. Like its name suggests, this hotel is akin to a town with a mélange of fine restaurants. After you savour the exquisite Arabian flavours of tender roasted meats at Al Tanoor restaurant, you decide to take home a piece of Oman with the intricately-designed crafts, jewellery and artwork

from the gift shop and art gallery. You saved the best hotel for last. The palatial Al Husn is indeed as its name implies: a suitably exclusive castle. Rooms and suites are amongst the largest in all of Oman, and it’s almost as if you have walked into a real Arabian palace. It‘s hard to pull yourself away from it all, but Muscat, Oman’s capital just 15 minutes away, beckons. You leave, knowing that wherever you go, you can return to the indulgent luxury of Shangri-La, at Barr Al Jissah Resort and Spa, Sultanate of Oman. For more information: Phone: (968) 2477 6666 Fax: (968) 2477 6677 Email: slmu@shangri-la.com Location: PO Box 644, Muscat 100, Sultanate of Oman

121

ROYALdinning

FINE DINING: HAKKASANABU DHABI Hakkasan Abu Dhabi opened in June 2010, bringing Hakkasan’s awardwinning cuisine and décor to the landmark Emirates Palace. Comprising a restaurant, bar and lounge as well as four private dining rooms, the 16,000 sq ft space is separated by carved wooden screens and latticing that echo the luxurious interior of the London flagship restaurant. Long-time design partner Gilles & Boissier, based in Paris, designed the space with the Hakkasan ethos of the modern ethnic, interpreting it for the United Arab Emirates. Embroidered-finished furniture and marbled Chinese forms enrich the space, and the main dining area is crafted into a wooden, cage-like structure surrounded by stunning blue glass and back-lit by a stainless steel frame.

122

Hakkasan’s signature dishes like Peking duck with caviar and grilled Wagyu beef with king soy sauce are served alongside a set of new dishes created especially for an Emirate clientele. The restaurant is headed by chef Lee Kok Hua, who hails from the London flagship where he worked under head chef Tong Chee Hwee for five years. General enquiries or reservations: Hakkasan Abu Dhabi Emirates Palace West Corniche Road P.O. Box 39999 Abu Dhabi – UAE T: +971 2 690 7999 hakkasan@emiratespalace.ae

303 23