Gulf Insider

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Gulf Financial Insider

GulfInsider -The Arabian Review

Issue 80

MADE IN BAHRAIN

Saudi Arabia

Monthly focus on Bahraini companies making a difference in the community.

World’s biggest tower

This month featuring:

Dubai

Euro Motors Fraser Suites

Expats quitting?

Somalia Pirates

Communication Matters Central Informatics Organisation and TRA President Dr Mohammed A. Al-Amer discusses Bahrain’s future plans.

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Gulf Financial Insider

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Inside this issue...

Made In Bahrain

10. Bahrain

Communication Matters

30. Dubai

Expats quitting

16. Euro Motors Majid K. Alzayani

12. Telecoms

31. Dubai

Problems hit the Palm

17. Fraser Suites

20. Restaurateur

32. Saudi Arabia

41. Facebook

24. GCC

42. Somalia

49. Cars

Roaming Rate Rip-Off

Kurt Zdesar

Transportation Overhaul

World’s Biggest Tower

Pirates

Olivier Briand

Arabic interface for Arab world

The new Porsche 911

COMMENT

GulfInsider

Gulf Financial Insider

The multi-award

Small acts, when multiplied by millions of people, can transform the World.- Howard Zinn

magazine winning Arabian

n Review -The Arabia MADE IN BAHRAIN Issue 80

nies on Bahraini compa Monthly focus ce in the community. making a differen

ring:

Saudi Arabia

This month featu

Euro Motors Fraser Suites

tower World’s biggest

Dubai

Expats quitting?

Somalia Pirates

Communication

Matters

nt and TRA Preside tics Organisation es Bahrain’s future plans.

Central Informa uss A. Al-Amer disc d me ham Mo Dr Bahrain BD2

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Ramadan Fast Lasts Longer High Up Muslims living in the World’s tallest tower in Dubai’s Burj Khalifa had to wait longer to break their Ramadan fast last month, as they could see the sun for longer than those on the ground due to the extreme height of the building.

Dubai’s top Muslim cleric, Mohammed Al-Qubaisi, said those who were above the 80th floor of the half a mile high tower had to wait two minutes longer for their Iftar meal and those above the 150th floor waited an extra three minutes.

“Residents in the 160-floor building also started their daily fasting two or three minutes earlier as dawn descended on them before those living on lower levels.” He said.

“Burj Khalifa residents observed varied timings for sunset and dawn prayers depending on their location level,

however those living on the first 79 floors were subject to the same rules as the rest of Dubai.”

Muslims living in the building which was inaugurated last year, strictly observed these timings during the monthlong duration of the Holy Month of Ramadan in August.

The Grand Mufti at Dubai’s Islamic Affairs Department Dr Ahmed Al Haddad also confirmed the same information to local newspapers. Al Haddad warned air travellers not to break their fast, only when they saw the sun setting and not according to the local times of the countries they were flying over at the time.

Top Muslim Cleric Mr Qubaisi added that under such rulings, people living on mountains were also ordered to break their fast after those at ground level.

Gulf Financial Insider

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Gulf Financial Insider October 2008

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your views

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Issue 79

Send your views to

gulfinsider@ArabianMagazines.com

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Showing Off?

Greedy Taxi drivers?

I particularly enjoyed last month’s luxury article about the Masterpiece London showcase but just couldn’t get my head around the numbers … paying £1.75 million for two sculptures?! Don’t get me wrong, I love art but sometimes I think people have more money than sense. But hey, I guess for many A-listers and royals attending the event the amount is merely ‘pocket change’ anyhow. Sigh …

Taxi drivers out here seem to be slated on a daily basis and it sounds like far too many people are being taken advantage of. When I last used a taxi, the driver took me a long route which I knew was wrong.

I point blank refused to pay the extra as it was obvious he had done it on purpose, these people know every short-cut possible. Even though I have experienced more bad than good, I still have mixed feelings. A friend of mine lost his phone in a taxi, only to be met by the same taxi man over an hour later who returned it because ‘it was the right thing to do’.

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Jealous Art collector-wannabe The multi-award winning Arabian magazine

Gulf Financial Insider

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Issue 78

Bahrain

Training expert engineers

Dubai

DXB vs LHR

Saudi Arabia

Women to sell lingerie

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HSBC ends lounge privilege for its customers?

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LMRA faces a struggle

Bahrain

Top 50 tourist destinations

Dubai

10 years for British businessmen

A Market for Bahrainis Hardworking, dedicated Bahrainis are already in the job market and employers are being encouraged to hire them Bahrain BD2

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The phrase ‘over the top’ doesn’t even begin to describe HAMAD the Abu Dhabi sheikh who carved his two-mile long name in a desert which can be seen from space. The idea is both ridiculous and awesome at the same time. I loved how, after mentioning all of the other ridiculous things he has and has done including owning a 200 rainbow car pyramid (?!), it mentioned he also occasionally helps the public with his vast wealth. Thank goodness for that then.

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We discover a land rarely seen by tourists Bahrain BD2

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Gulf Insider September 2011

Issue 77

My HSBC statement says the free lounge access offered through the Priority Pass card has now been rescinded. I called the bank for an explanation but nobody at the bank seems to know anything about it.

Perhaps Gulf Insider, as Bahrain’s business magazine, should investigate as you might get an answer from HSBC and so be able to notify everyone if HSBC has in fact ended this useful customer service, and if so why.

Like yourself have been unable to get a clear answer from HSBC, who informed us that those responsible for the service are currently out of Bahrain, so we will publish the bank’s comments in the October issue (ed).

Emily Faris

No More Real Estate!

GPIC’s CEO spoke of how badly real estate has been affected by the current financial turmoil in last month’s issue. So why may I ask, everywhere I look there are new buildings going up left, right and centre? Every morning I am woken up by the sound of drilling and hammering on new apartment blocks, many of which are just not needed. Land reclamation is getting out of control and the Island already looks completely different on the world map. Slow down!!

Sleep-deprived local

Where’s my pay rise?

I was overjoyed when I discovered that the government had announced a pay increase for public sector staff, but was shocked on discovering that the pay increase only applies to Bahrainis. I am not a Bahraini, but I know for a fact that I work at least as hard as anyone else and truth be told work harder and have more responsibility than many of my Bahraini peers, as do most other expats working in the government sector. This blatant unfairness has left many of us angry and demoralised. So much for one rule for all!

Demotivated public sector worker

Business Roundup

GOP Gearing up to Commemorate World Maritime Day 2011 The General Organisation of Sea Ports (GOP) is gearing up to host the Bahrain Maritime Festival (BMF) for the second time, joining the international World Maritime Day (WMD) 2011 activities. This year’s theme is “Piracy: Orchestrating the Response”, and will focus on global initiatives to combat piracy and coordinate a cohesive international response to lessen the impact of piracy.

The festival will start on 25th September for four days and aims to generate greater awareness of Bahrain’s growing achievements and developments and further position Bahrain as a pioneer in the global maritime industry.

Director General of GOP Hassan Ali Al Majed said, “The Bahrain Maritime Festival is one of the major initiatives undertaken by the GOP to spread awareness.

We are excited to announce the exclusive line-up of maritime-themed activities and our strategy is to boost Bahrain’s position as a global maritime centre, believing that the BMF is an excellent channel to help us achieve our strategy.”

A photography contest entitled ‘Reflections of the Two Seas’ will also be held for photography enthusiasts and a Kids’ Carnival including activities will all take place at Bahrain City Centre.

Launch of MEPRA 2011 PR industry Awards The Middle East Public Relations Association (MEPRA) the region’s trade association for Public Relations and professional communicators, have announced the launch of the MEPRA 2011 Awards, the region’s leading annual PR industry awards.

The awards will recognise excellence across the region and will be presented on 30th November, discovering the best practices in 14 different categories in the PR industry.

MEPRA Chairman Guy Taylor said, “The popularity of the MEPRA Awards is a reflection of the competitive nature of agencies offering ever increasingly high standards of service to clients. But whilst most entries traditionally come from agencies, we also wish to gain greater participation from inhouse practitioners.”

The MEPRA 2011 Awards reflect the depth of the professional communications industry in the region, covering a range of disciplines and the awards will be judged by a panel of PR industry peers.

Gulf Insider September 2011

7

Business Roundup

ATM 2012 Partners with Mövenpick Hotels in Dubai Reed Travel Exhibitions, organiser of Arabian Travel Market has named three Mövenpick properties as host hotels for its May 2012 event, the Ibn Battuta Gate Hotel, the Mövenpick Hotel Deira, and the Royal Amwaj Resort and Spa on Palm Jumeirah which is scheduled to open in 2012.

The three properties will officially accommodate the ‘Hosted Buyers’ programme, which includes top decision-makers from the leisure, golf, cruise, medical and meetings sector, as well as selected international press, attending ATM 2012.

Group Exhibition Director of Reed Travel Exhibitions Mark Walsh said, “Arabian Travel Market is committed to the Middle East as a leading international travel and tourism destination and our partnership with these three hotels represents an ideal opportunity to align one of the region’s most progressive hospitality brands with our unique event platform.”

The five-star Ibn Battuta Gate Hotel, which opened in October 2010, was recently named Best New Business Hotel at the Business Traveller Middle East Awards 2011 and the 396-room hotel is part of the distinctive Ibn Battuta Gate development, drawing on architectural, décor and culinary influences from the travels of the14th century explorer of the same name. The hotel boasts an opulent grand lobby, five themed restaurants, a Moroccan bar, as well as Diablo, an up-market night club.

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Gulf Insider September 2011

“ATM presents an unrivalled opportunity to showcase our facilities and levels of service to a highly influential audience,” said General Manager of Ibn Battuta Gate Hotel,Philippe Bonnot.

The Royal Amwaj Resort and Spa, which is due to open in 2012, is situated on the crescent of the Palm Jumeirah.

This five-star Asian-themed retreat features individual water villas set around meandering lagoons and a private beach, and top class restaurants serving Thai, seafood and North American cuisine, an exclusive spa, water sports club and comprehensive banquet facilities.

The Mövenpick Hotel Deira, is the latest five-star addition to Dubai’s ‘old town’ skyline. Situated close to Dubai Creek it is located for corporate and leisure visitors alike, in Dubai’s original downtown.

“The combined offering of these three distinctive and very different hotels will allow our hosted buyers and international media guests to get a real sense of the diversity of the tourism product across the Middle East,” said Reed Travel Exhibitions Marketing Manager Lucie James.

“The mutual trade-off in attracting quality buyers and delivering a quality host hotel experience is crucial in driving interest and guaranteeing the attendance of key travel industry players,” added James.

Arabian Travel Market 2012 will be held at the Dubai International Convention and Exhibition Centre from 30th April to 3rd May 2012.

Business Roundup

General Manager to Address Middle East Chemical Week Clarion Events Middle East FZ LLC announced Saudi International Petrochemical Company (Sipchem) General Manager of Product and Technology Development Dr Trevor Hutley will address the Middle East Chemical Week (MECW) on the need for innovation in the GCC petrochemical industry.

The presentation will be delivered at MECW 2011 on 17th October 17. Dr Hutley commented “Even a private company can take a bold step and set up their own Research and Development centre to take control of their future.”

Many top-level industry officials and experts from the UAE, Saudi Arabia, Kuwait and Oman will also be present at MECW 2011, which is regarded as a key platform for petrochemical and downstream players to meet and do business and the event will take place at the Abu Dhabi National Exhibition Centre from 16th to 19th October .

Sony Ericsson Live with Walkman Delivers Unique Social Music Experience for Smartphones Sony Ericsson recently announced the launch of Sony Ericsson Live with Walkman, an Android smartphone that delivers a unique social music experience.

A dedicated Walkman hardware button provides instant access to the music player and users can also like, share and discover content through a deep Facebook integration. The infinite button lets consumers explore even more.

With attractive curved design, a glossy finish and a mineral glass display, the phone has a 3.2-inch screen and a powerful 1Ghz processor. A front facing camera enables Skype video calling, while a 5MP AF camera can capture 720p HD video recording. Sony’s xLOUD™ enhances audio output, while the latest Android platform for smartphones (Gingerbread 2.3) provides access to over 250,000 applications on the Android Market.

Sony Ericsson Head of Product Marketing Nikolaus Scheurer said, “Consumers want smartphones to deliver a rich and social entertainment experience. Rather than a one-dimensional music experience, they want instant and seamless access to new content, combined with the ability to share and connect with their friends. The Sony Ericsson Live with Walkman provides exactly this, in a powerful package with great style.”

New Gulf Air Routes Added Gulf Air, Bahrain’s state-owned carrier, are planing new routes in the Middle East and to Europe to add service to financial centres.

The BD400m that the Gulf kingdom injected into Gulf Air last year has helped considerably as the carrier reorganises and carries out changes.

Chairman Talal Al-Zain said, “Even though we are streamlining the airline, we wanted Gulf Air to reach more destinations. The carrier is one of the most important assets we have as part of the government’s infrastructure policy to attract global players to set up operations in the island nation.”

Gulf Air is one of the Middle East’s oldest carriers and Bahrain has become the sole owner of the carrier. The airline is in the midst of a three-year reorganisation to restore profit as it confronts newer rivals in the region such as Emirates, Etihad Airways and Qatar Airways.

Big Bahrain Rebound Boosts GCC Job Activity Recruitment activity soared by 14 per cent in July driven by a major rebound in opportunities in Bahrain, according to latest data supplied by recruitment firm Monster Worldwide.

The Gulf kingdom, which is recovering from months of social unrest, saw a 46 per cent increase in activity compared to six months ago, Monster said in a statement.

“The Monster Employment Index Gulf’s positive movement in July reflects further escalation in hiring efforts by regional employers to contrast with the subdued levels of late-spring,” said Managing Director of Monster.com Sanjay Modi.

“Across the Gulf, we’re seeing ongoing growth in demand for professionals in finance, legal, HR, and administrative fields.”

Following July’s increase, Monster said four of the twelve industry sectors monitored now registered positive six-monthly growth.

The banking, financial services and insurance (BFSI) sector was the fastest growing in the region over the past six months, registering 19 per cent growth.

Engineering, construction and real estate (up five percent) also continued to record steady long-term growth, however the hospitality sector saw declines of 27 per cent and advertising, market research, public relations, media and entertainment fell 25 per cent.

Gulf Insider September 2011

9

Bahrain

Communication MATTERS Gulf Insider sat down with Dr. Mohammed A. Al-Amer, President of Central Informatics Organisation (CIO) and Chairman of Telecommunications Regulatory Authority (TRA) to discuss company challenges, current campaigns and future plans for Bahrain and its residents.

Y

our latest campaign on number portability has been receiving a lot of feedback and publicity.

Was this campaign launched due to the public’s request? How has the feedback been from the providers’ side - Batelco, Zain, Viva so far?

The ‘I Love My Number’ idea came about a while ago, but it took a long time to get feedback from the public.

The difficulty was for the three different operators to reach a consensus and once people began to register and it was determined that there was sufficient demand from the public, we were able to make the idea a reality. It is helpful to provide this service to the public as it makes things easier for them to keep the number they are used to and so far we are receiving positive feedback.

More and more people have complained about exorbitant roaming charges - what steps has TRA taken to ensure that customers are protected from being unknowingly charged skyhigh roaming costs?

This was a difficult issue because of Batelco’s, Zain’s and Viva’s different arrangements for people travelling overseas. We realised there were many complaints and even I faced and suffered from high roaming charges. GCC roaming tariffs have been introduced with a cost ceiling to combat the problem.This means that within GCC countries, charges will not exceed 249 fils per minute for calls made to Bahrain or to any GCC number.

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Gulf Insider September 2011

The amount of 104 fils per minute will not be exceeded for voice calls made within the visited country, while voice calls received from Bahrain or any other country is not regulated. People now receive a text message as soon as they arrive in another country for them to choose the best operator possible which includes price details. The next step is to agree on data roaming which needs the decision not just of Bahrain but of more countries, making the process slightly longer.

to meet a stranger they had spoken to online which is very concerning.

Cyberbullying affects schools in particular and because it is extensive, it cannot be solved by addressing only one issue, the problem also requires self regulations for personal safety. The campaign has hopefully encouraged parents to become more in tune with their children’s internet activity and build a level of trust. It is very important to conduct periodic studies about cyber issues so we know we are focusing on the right thing.

I want to empower employees and capitalise on the best in people. I want the public to feel part of the change.

Tell us more about what other initiatives you have in the pipeline ...

A DVD has been created to address online safety as part of our ‘SafeSurf’ campaign for parents and children to watch, which will be available to all residents in Bahrain. It will be released very soon and will be available in different languages. A broadband strategy has just been commissioned which will hopefully be finished by the end of the year.

You’ve introduced the ‘SafeSurf’ campaign - how has this impacted parents, children and schools etc. in how they behave when using the internet?

We conducted the initial study last year and were astonished by the results and the magnitude of problems to do with issues of cyberbullying and online safety.

The results found that a high percentage of teenage girls in Bahrain were likely

How long have you been involved with TRA and the CIO, what has been your biggest challenge so far?

When I joined I was already aware that it would be a big challenge to handle, but the team is very strong and I had an agenda and focus when I started. It was very important for me to finish pending projects that should have been completed months and even years before. Improving the services and pleasing customers is the most

Bahrain

challenging task of all. It is important for me to provide the consumer with enough choice regarding tariffs and pricing so it has been an exciting challenge getting where we are today.

As your role as the head of CIO, how are you ensuring that the information and people’s privacy is protected?

The privacy and personal data is protected in Bahrain. It is embedded in several current laws and regulations.

However, there is an attempt by the Government to enact a unified comprehensive personal data protection law that caters for data in the public and private sectors. The proposed law is based on the recommendations and guidelines of the Council of Europe Governing the privacy and personal data protection. This law was prepared by the Government and has been

presented to the Parliament for it’s discussion and approval.

What is your management philosophy?

My management philosophy is simple; it is employee empowerment.

Improving the services and pleasing customers is the most challenging task of all.

It is customer orientation. It is service driven. Capitalising on the best in people, technology and processes to serve consumers in the case of TRA and customers in the case of CIO. I want the public to feel part of the change.

What do you find rewarding about being in your position?

I find it a really satisfying process when I think of a new idea, go through the whole process of putting it together and finally see the idea being implemented. Over the years seeing business grow by the launch of the third mobile operator Viva one and a half years ago and implementing innovative ideas, shows that the hard work eventually does pay off.

What are your future goals?

The service we provide will hopefully be good enough that customer complaints about speed, quality of product, service and prices will be very rare, hopefully non-existent. We try and cater to a broad market and learn from both mistakes and success. Developing our long term strategies and trying to make them as resilient as possible, without relying too much on technology is important. GFI

Gulf Insider September 2011

11

ROAMING RATES

INTERNATIONAL ROAMING RATE RIP-OFF? Gulf Insider investigates whether high roaming rates are justified, or just a great big rip-off? - By Katy Gillett

T

he term ‘ripoff’ is actually listed in various dictionaries. Granted it’s a slang word but it is officially defined as “a product or service that is overpriced or of poor quality.”

Most of us can indeed equate the term with travelling abroad and leaving on your mobile roaming services. Unless you are away for business and you know your company will foot the bill, then we believe very few of us will actually stay switched on. In fact, even if you’re just going for a couple of days, it is far more cost effective to get a new SIM card in the country you’re visiting. This is a situation that’s had us at Gulf Insider scratching our heads for a while now...

Unwitting mobile phone customers are being billed what many believe are extortionate rates for a few and often no phone calls made and/or received, experiencing that all-familiar state of shock when we receive our bill.

As of 1st July, GCC telecommunication service providers decided to reduce roaming charges by 30 per cent, following on from a previous 30 per cent cut on regional rates in September

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Gulf Insider September 2011

2010. This decision was made after the conclusion of a three-day meeting of the telecommunication regulators of all six GCC countries including Bahrain. A GCC official was quoted as saying: “In no case should the charges be allowed to exceed 15 per cent of the charge for an international call.”

Unwitting customers are being billed extortionate rates for a few and often no phone calls.

The fact that they were able to slash the prices by 30 per cent last year and another 30 per cent this year, many believe, just goes to show how ridiculous roaming rates are in the first place.

In a statement to Gulf Insider, Telecommunications Regulatory Authority (TRA) Consumer Affairs

Manager Ms Ghada Al Ghassab admitted that “TRA is not currently regulating international roaming charges. The market is subject to roaming agreements between the user service provider and the visiting operators. The operators have their own agreements between one another and are competing with each other to have the lowest rates for their own subscribers.”

Ms Al Ghassab explained that the local service provider bills the subscriber for the charges by the visited provider in addition to a maximum of 15 per cent margin for the local provider but these rates vary according to the agreement between operators.

So, we ask, our only option is to quite inconveniently switch off our roaming service then? Ms Al Ghassab answers this: “With the increased use of smart mobile phones and the thousands of different applications which require internet connection, many consumers forget to switch off data roaming function on their mobile. Consumers need to educate themselves of the applications that require internet to operate and

ROAMING RATES

True Horror Stories!

Zain – DB180 bill for 4 days in UAE

Gulf Insider reader Natalie Watson, a senior account executive for a branding consultancy, was cut off just two days into a trip to Dubai: “My basic package is meant to be BD25 a month with Zain but I don’t think I have ever paid this amount in a month. I have never used roaming but I went to Dubai for four days and made the mistake of roaming.” Once cut off, she had to ask a friend to pay her bill in Bahrain. Two days later, she was cut off again. The two bills totalled BD180. “It was the emails and data that increased my bill but I was so mad. The only notice I got from Zain was a text four hours before they cut me off asking me to pay my bill.”

Batelco – BD200 for UK trip

Batelco user Debbie Howes went on a trip to England where she left her phone on but never even used it. “I was charged more than BD200 for roaming data costs, which they were not able to give me the details of when I asked. It was highly frustrating as there was nothing I could do; I couldn’t call or text. I keep my phone off when travelling now.”

Viva – BD171 for 3 days in UK despite arranging BD30 limit

make the choice of using this application while roaming or not.”

And so, we set out to question each telecom thoroughly. Well, as thoroughly as possible when it takes two weeks for some telecom representatives to get back to you and others respond with one sentence answers.

We asked Batelco Group GM Media Relations Ahmed Al Janahi why roaming rates are so high – his reply:

I was charged more than BD200 for roaming data costs, which they were not able to give me the details of when I asked.

“Globally, roaming charges overall are higher than local and IDD (International Direct Dial) rates. The charges are set up and controlled by the operators in the visited countries, not by Batelco. We only control the rates for roamers in Bahrain. The main reason is that some of the smart phones have many applications that run in the background thus resulting in automatic updates and pushed e-mails coming through. It is important to know your phone and its capabilities.”

Mother of two and VIVA user Lynne Hardy gave her daughter a Blackberry with a cut off limit of BD30. “We sorted out an alternative service provider in the UK when we went as we knew the bill would start to get higher but we left it on for three days.

Then we found out the BD30 is only applicable in Bahrain and once you go outside the country it can amount to whatever it wants! In our case, BD171 in three days.”

Batelco – BD800 for weekend in Dubai despite arranging BD150 limit

Social media specialist Saad Mohammed shared his two experiences with us. Before heading to Dubai for the weekend he set the credit limit on his phone at BD150 with Batelco.

“When I got there, I made a few phone calls to Lebanon and other neighbouring countries. Seeing as my credit limit was set I automatically assumed that I could call as much as I want and they’d disconnect me at the point I surpassed the limit. But that wasn’t the case as when I got to Bahrain, I was given a bill of BD800!” Saad asked them why to which they replied that credit limits don’t apply when you’re roaming. “Something they never tell you when you’re getting a roaming package.”

On another occasion, Saad used his Blackberry service in Germany. He didn’t use anything but the messenger for about four days but was lumped with a bill of BD70. “That was ridiculous as many telecom operators now have a global Blackberry package.”

Zain - BD111 for Istanbul transit stopover + BD26 to open 1 email

Our very own editor-in-chief, Nick Cooksey, has also a few experiences to share. For instance on a recent trip to Spain he found an addition of BD26 on his bill from Zain for opening just one email! And on another occasion, a stopover of a few hours at Istanbul airport (where just two short SMS messages were sent) resulted in a bill from Zain of BD111.

Gulf Insider September 2011

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ROAMING RATES Mr Al Janahi said that customers have the option of a number of service providers to select from in each country they visit, so advises that customers check before travelling what their best roaming options are. He also states that customers can save up to 80 per cent by only receiving calls rather than generating calls (hardly handy is it?). “For example Batelco has agreements with hundreds of telecom provides all over the world and the best rates for Batelco customers will be available from these international partners. We encourage our customers to visit our website to see the full list of our roaming partners and rates.”

Mr Ayman Al Alawi, Corporate Marketing and Roaming Manager at Zain Bahrain was asked the same question – his reply: “There are several factors leading to why roaming rates are set to this level, with the fact that first and foremost, roaming prices are set by the visited network, which are the wholesale rates, and that makes up the largest portion of the final price customers pay.

Traditionally, the home network simply adds a mark up to the wholesale rate to cover costs, however today due to the evolving market dynamics, different pricing regimes have emerged.”

When asked what could be done to lower the rates, Mr Al Alawi admitted that with the availability of substitutes such as VOIP (Voice Over IP)/social networking applications, prices will naturally go down. “Substitutes to roaming become more apparent within WiFi zones, and thus can allow consumers to reduce costs by bypassing roaming services.

Purchasing local prepaid Sim cards is also an option. Other operators have resorted to a new paradigm to offering roaming services.” This refers to recent initiatives taken by the telecoms such as Zain’s One Network service and Batelco’s Unified Data Roaming package.

“Generally speaking, and with reference to mobile voice services trends, there is a decline in revenues attributed to increased competition, and wider availability of substitutes,” continued Mr Al Alawi. “For roaming services, I believe it’s only a matter of time until rates decline, but it shall take the consensus of the big operator groups to lead this way not only through retail roaming proposition within their networks but offering competitive wholesale rates.”

We also put these questions to VIVA.

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Gulf Insider September 2011

A spokesperson for the telecom replied: “Roaming is an elite service.” Hold it.

I thought roaming was and should be open to everyone, not just the ‘elite’?

He continues: “The purpose of roaming is to keep the customer connected and continue using his lines wherever he goes. Reducing costs is not a decision to be taken from our side alone, it should be done reciprocally; whenever there is a chance to reduce the price with the other operator we will always look to reduce our cost and transfer this benefit to our customers.”

And why, we asked, even when people don’t use their phones, do they still incur high bills? “If customers are really not using their data roaming then simply turning it on cannot incur charges. What may happen, however, is that the phone automatically updates or syncs information over the data network

Substitutes to roaming become more apparent within WiFi zones, and thus can allow consumers to reduce costs by bypassing roaming services. without the user noticing or certain applications that connect automatically to the internet make the connection without the user’s knowledge.”

It’s all well and good the telecoms explaining it to us, as we need all the facts, but we do detect a slight inkling of bias in their responses. We turned to Mr Philippe Baubin, CEO of Lightspeed Communications, for a more neutral opinion. “Bahrain is a small market and when you have 1.2 million inhabitants as opposed to 50-60 million potential customers you can expect different rates but telecoms here are still expensive.

“Another point is the cost of international IP capacity which is very expensive in Bahrain compared with other countries. This is due to the configuration and not enough cables coming in. Otherwise I don’t see any

reason for prices to be so high. The TRA have done a good job in stimulating the market and Bahrain’s regulations in comparison to other GCC countries are much more advanced in my opinion however we do need more competition and investment in these services. There is still room for strong improvement but I am optimistic, especially as the new GM at the TRA seems very open to listen to the operators.”

So far explanations are starting to look fairly indefinite. If we take a look at the case of Europe, we can see how much ambiguity this market creates. For instance UK’s smallest mobile operator 3’s regulatory chief Hugh Davies was reported saying that while operators do need to incur some one-off costs when enabling data roaming, these do not explain the charges. “It costs about the same as it costs at home - plus a little bit extra. And that little bit more is not the same as what consumers are paying.

It’s way too high. It’s the equivalent of walking into a bar in Germany and being told ‘here’s a glass of wine for EUR500 because you’re a Brit or a Spaniard’.”

We’re no expert in telecommunications but after our investigations, we’re not convinced costs aren’t far too high. It just seems that those who stand more chance of profiting from this situation like to make it sound much more complicated than it is. But what we can leave you with is a bit of advice: 1. Before travelling contact your telecom to find out which overseas providers offer the best rates in the country you’re heading to; demand a full list of roaming rates for your reference (Batelco offer this on their website, but the other telecoms do not) 2. Know your phone and its capabilities 3. On arrival make sure you properly read any text messages that are sent to you by your home telecom and providers in the locality; if you have alternative access to internet then turn off your data package 4. Download Skype (or a substitute) on your phone and use that when making and receiving phone calls. ... and one more pearl of wisdom before we go: when you receive that bill... just breathe.

ROAMING RATES

Bahrain’s Telecom Roaming Charges Telecom

Country

Service Provider

Data Rate

eServices/OutBound_Tariff.aspx). In fact we do need to give kudos to Batelco for their relative transparency on rates and efficiency in replying to our questions compared to the other telcoms.

Now let’s break this down: In the case of travelling to Australia, with Batelco as your home service provider, and using Telstra as your host provider: • Download just 1MB of date = BD9.055 • Make a one-minute phone call within Australia = BD0.414 • Make a one-minute phone call to Bahrain = BD0.984 • Receive a phone call from Bahrain for one-minute (at peak time) - BD0.330 • Send one text message within Australia = BD0.177 • Send one text message to Bahrain = BD0.177

(BD per MB)

VIVA

Australia

Yes Optus

9.313

VIVA

Australia

Telstra

11.686

VIVA

Australia

Vodafone Australia

1.588

VIVA

UAE

AREDU

0.177

VIVA

UAE

ETISALAT

0.600

VIVA

UK

O2 UK

6.972

VIVA

UK

3

1.395

VIVA

UK

T-Mobile

3.486

VIVA

UK

Orange

2.354

VIVA

UK

Vodafone Limited

6.277

Batelco

Australia

Yes Optus

9.340

Batelco

Australia

Telstra

9.055

Batelco

UAE

ETISALAT

0.600

TOTAL = BD11.137

Batelco

UAE

Du

0.600

Batelco

UK

Hutchison 3G

1.394

Batelco

UK

Orange

3.485

Batelco

UK

Telefonica UK Limited

6.970

Batelco

UK

Vodafone

6.273

Now that took us five minutes to rack up.

Say you did this once a day for one week that you’re there - you’d have a bill worth BD77.959 and this is a best case scenario if you’re being very careful. But remember, we actively downloaded that 1MB of data. Data is forever downloading in the background of your smartphone (confirmed by every telecom and the TRA) and so your control over this most expensive aspect of the rates is limited. GFI

This table is just a brief look into the world of wildly differing roaming rates.

You need to request these from the

telecoms themselves but in the case of Batelco - they are fully available online (www.e-services.com.bh/

Gulf Insider September 2011

15

Made In Bahrain Monthly focus on Bahraini companies making a difference in the community.

Euro Motors Euro Motors was established in 1998 and has come a long way, positioning itself as one of the leaders in the Bahrain automotive industry.

Gulf Insider spoke to Euromotors Marketing Manager Majid K. Alzayani about the variety of new and second-hand luxury cars on offer.

W

hat differentiates Euro Motors from other car dealers?

Euro Motors offers the widest mix of luxury car brands under one roof, and caters to different customer tastes, preferences and budgets. For example we offer many different types of convertibles ranging from the MINI Cabrio, BMW 6 Series Cabrio, up to the Rolls Royce Phantom Drop Head.

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What finance options do you offer customers?

Euro Motors offers in-house finance on certain vehicles. However, in some cases we offer 0% or interest free finance for special campaigns, as we have been and continue to offer on a selection of our used cars.

What type of vehicles do you sell?

As the name suggests we are authorised importers for European luxury brands such as BMW, MINI, Rolls Royce, Land Rover, Range Rover, Ferrari, Maserati and most recently, London Taxis.

Euro Motors offers all of the various aftersales services and honours manufacturers’ warranties to its patrons.

Do you offer pre-owned vehicles?

What is your policy regarding these?

We do offer pre-owned vehicles. We have a dedicated used car showroom for our various brands. Euro Motors follows strict manufacturer standards such as the BMW Premium Selection 72-point check when inspecting pre-owned BMWs for trade in or re-sale.

What type of aftersales services do you offer a customer?

Euro Motors offers all of the various aftersales services and honours manufacturers’ warranties to its patrons.

We have dedicated workshops for each of our brands including a full body-shop, and our technicians are trained directly

Gulf Insider September 2011

by the manufacturers at our facilities in Bahrain and at their headquarters abroad. Furthermore, we employ modern technologies that allow us to link the vehicles directly to the manufacturer in order to benefit from their knowledge base and best practices.

What is your expectation for the automotive sector in Bahrain for the next year?

Recent events have led to a slowing down of spending in the marketplace in Bahrain. However, my personal expectation is a positive one for the luxury automotive sector over the next year as there have been many initiatives from the government and private sector to foster the continuation of a strong and healthy economic growth in the kingdom. This will be reflected in consumer spending, and no doubt also on luxury vehicles. GFI

For more information, visit the Euro Motors showroom in Sitra or Tel. +973 1775 0750

Made In Bahrain

Fraser Suites Gulf Insider spoke to Fraser Suites Bahrain General Manager Olivier Briand about the company that strives to make a difference within the community.

F

raser Suites Seef Bahrain opened its doors in June 2009 and is renowned for its personalised services and high standards, providing luxurious fully serviced accommodation in the heart of Seef.

What is satisfying about being involved in this type of industry?

The job is satifying as it is certainly not monotonous; meeting new acquaintances and undertaking new challenges daily are just some of the positives in this industry. I glean fulfillment in answering each guest’s unique need and people must be passionate working in this industry especially in hospitality, providing a service to individuals.

What do you find frustrating about the market?

We are slowly expanding, however a lot still needs to be done to attract more tourists. Last June we opened a new ladies’ salon and added another meeting room and we are always looking at new ways to expand. The GCC market is booming with cities like Abu Dhabi and Doha having plenty to offer in terms of quality and infrastructure and hopefully Bahrain will soon be in the same league.

We have the advantage of very strong traditions and cultural heritage here.

What makes you different from other competitors?

Fraser Suites are serviced apartments with the same facilities that you may expect from some five-star hotels. The overall space to live is impressive and you

will find our boutique concept an oasis in Seef Mall with contemporary decoration and state-of-the-art equipment.

I personally find competition healthy and it keeps us on our toes to constantly do our very best. People are not born to become successful businessmen or women and it certainly doesn’t happen overnight, you have to work very hard if you want something.

How do you feel about the Government’s plan for ‘Vision 2030’?

Fraser Suites is proud to announce that a partnership has been signed with Tamkeen that is able to benefit all of our Bahraini employees.

Even at our own level, we all have individual and group targets so I believe a country should also have it’s own long term plans. I’m glad to see that the Government is pushing for every Bahraini to play an active role in the economy.

How do you think businesses like yours can benefit from this Government initiative?

There will be more qualified local manpower on the market however

Olivier Briand

we are still facing some difficulties hiring locals.

Our business are doing our best to maintain the right mix between expats and local employees because going only for expats will keep you away from the reality and the specifics of the country.

Fraser Suites is proud to announce that a partnership has been signed with Tamkeen that is able to benefit all of our Bahraini employees.

What is Bahrain’s greatest strength as far as doing business here in the kingdom is concerned?

Bahrain is leading the way in attracting global companies to enhance its growth story with the GDP growing more than 6 per cent per annum in the past five years.

Frasers Hospitality marked the beginning of a major presence in the Middle East with the opening of Fraser Suites Bahrain in 2009 followed in quick succession with the launch of Fraser Suites Dubai in 2010 and Fraser Suites Doha this year.

What initiatives do you undertake at your own level to entice businesses to patronise products that are ‘Made in Bahrain’?

Since every company’s main asset is it’s employees, we believe that through Bahraini labour force we will add that local touch to the Fraser concept. GFI

For more information, visit Fraser Suites Bahrain in Seef or Tel +973 1756 9333

Gulf Insider September 2011

17

world

WORLD’S DATA MORE THAN DOUBLING EVERY TWO YEARS

T

he EMC Corporation (NYSE:EMC) sponsored IDC Digital Universe study, “Extracting Value from Chaos” found the world’s information is more than doubling every two years, with a colossal 1.8 zettabytes to be created and replicated in 2011.

The study’s fifth anniversary, measuring and forecasting the amount of digital information created and copied annually - analysing the implications for individuals, enterprises, and IT professionals - has huge economical, social and technology implications for big data and other opportunities.

In terms of sheer volume, 1.8 zettabytes of data is equivalent to: • Every person in the United States tweeting three tweets per minute for 26,976 years nonstop • Every person in the world having over 215 million high-resolution MRI scans per day • Over 200 billion HD movies (each two hours in length) - would take one person 47 million years to watch every movie 24x7 • The amount of information needed

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Gulf Insider September 2011

to fill 57.5 billion 32GB Apple iPads.

With that many iPads we could:

 Create a wall of iPads, 4,005-

miles long and 61-feet high extending from Anchorage, Alaska to Miami, Florida.

 Build the Great iPad Wall of China - at twice the average height of the original  Build

a 20-foot high wall around South America



Cover 86 per cent of Mexico City



Build a mountain 25 times higher than Mt. Fuji The forces behind this relentless growth are driven by technology and money. New ‘information taming’ technologies are driving the cost of creating, capturing, managing and storing information down to one-sixth of what it was in 2005.

Additionally, since 2005 annual enterprise investments in the Digital Universe - cloud, hardware, software, services, and staff to create, manage, store and generate revenue from the information have increased 50 per cent to USD4 trillion.

Study Highlights:

• Massive Server, Data Management and File Growth Not Keeping Pace with Staffing: IDC notes that the skills, experience, and resources to manage the deluge of data and resources simply isn’t keeping pace with all areas of growth. Over the next decade (by 2020), IT departments worldwide will experience:

 10X the number of servers (virtual and physical).  50X the amount of information to be managed.  75X the number of files or containers that encapsulate the information in the digital universe, which is growing even faster than the information itself as more and more embedded systems, such as sensors in clothing, in bridges, or medical devices.  1.5X the number of IT professionals available to manage it all.

• Cloud Computing Cost and Operational Efficiency: While cloud computing accounts for less than 2 per cent of IT spending today, IDC estimates that by 2015 nearly 20 per cent of the information will be ‘touched’ by cloud computing service providers - meaning that somewhere in a byte's journey from originator to disposal it will be stored or processed in a cloud. Perhaps as much as 10 per cent will be maintained in a cloud.

world

• The Digital Shadow Has a

Mind of Its Own: The amount of information individuals create themselves — writing documents, taking pictures, downloading music, etc.—is far less than the amount of information being created about them in the digital universe.

• The Liability and Responsibility is with Enterprises: While 75 per cent of the information in the digital universe is generated by individuals, enterprises have some liability for 80 per cent of information in the digital universe at some point in its digital life.

“The chaotic volume of information that continues to grow relentlessly presents an endless amount of opportunity - driving transformational societal, technological, scientific, and economic changes,” said Jeremy Burton, Chief Marketing Officer, EMC Corporation.

Other Key Findings

• New capture, search, discovery, and analysis tools can help organisations gain insights from their unstructured data, which accounts for more than 90 per cent of the igital universe. These tools can create data about data automatically, much like facial recognition routines that help tag Facebook photos. Data about data, or metadata, is growing twice as fast as the digital universe as a whole.

• Business intelligence tools increasingly are dealing with real-time data, whether it’s charging auto insurance premiums based on where people drive, routing power through the intelligent grid, or changing marketing messages on the fly based on social networking responses.

• New storage management tools are available to cut the costs of the part of the digital universe we store, such as de-duplication, auto-tiering and virtualisation, as well as to help us decide what exactly to store, as in content management solutions.

• New security practices and tools can help enterprises identify the information that needs to be secured and at what level of security, and then do so from specific threat protection devices and software to

fraud management systems and reputation protection services.

• Cloud computing solutions – both public and private and a combination of the two known as hybrid – provide enterprises with new levels of economies of scale, agility, and flexibility, compared to traditional IT environments. Long term this will be a key tool for dealing with the complexity of the digital universe.

• Cloud computing is enabling the consumption of IT-as-a-Service . Couple that with the Big Data phenomenon, and organizations increasingly will be motivated to consume IT as an external service vs. internal infrastructure investments.

• The growth of the digital universe continues to outpace the growth of storage capacity. But keep in mind that a gigabyte of stored content can generate a petabyte or more of transient data that we typically don’t store (e.g., digital TV signals we watch but don't record, voice calls that are made digital in the network backbone for the duration of a call).

• Less than a third of the information in the digital universe can be said to have at least minimal security or protection; only about half the information that should be protected is protected. GFI

Gulf Insider September 2011

19

PeoPle

VE

SI CLU

EX

KURT ZDESAR: RESTAURATEUR EXTRAORDINAIRE As Ceo of MeSK Holdings - owner of restaurants Meat Co., Block 338, Aroma Cafe and the soon to open Tangrams, Australian Kurt Zdesar, 39, is an experienced restaurateur with a track record in establishing and developing fine dining restaurants throughout europe.

A

s a restaurant consultant and concept developer, Kurt’s extensive industry knowledge and experience propelled him to build his wildly successful brainchild Ping Pong; as well as Nobu - the first European restaurant in London which received a Michelin star within ten months of opening - the UK’s first Michelin star for Asian cuisine. Aside from currently heading MESK’s restaurants, he’s also responsible for the success of fine dining restaurants, Mews of Mayfair in London and Les Bains Douches in Paris.

Rebecca Cooksey sits down with Kurt to find out a little bit more about what makes him tick.

You left school at 16 and started working at McDonald’s – although you were young had you considered your future at that point?

Actually I always thought I would get into boat building because I love boats and the water. I only took the job at McDonald’s because I liked Big Macs and needed a job as I had just moved to the UK from Australia. What I didn’t realise when I joined McDonald’s was that I was going to learn such a fantastic system of working which was going to benefit me for the rest of my life.

But I was also an entrepreneur from a young age and quite prepared to do most things to make money; whether it was washing cars, cutting lawns for the neighbours through to busking on the streets and playing carols, at Christmas

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Gulf Insider September 2011

time. I was the richest twelve-year-old at school; some kids mocked me until I told them how much I had earned ,and a few copied. This was my first lesson in business - ‘play down your successes’.

Now I had other kids to compete with.

Pride can be destructive.

What did you learn that was so great?

I have never worked in an environment where it has empowered its staff as much as it did at the time. They made us think that we were doing the most important job in the world. Our induction day made us feel connected to America, which made the job seem more exciting. They taught us the importance of customer service. They also gave us great training and support so we all knew what we were doing and they rewarded us for our achievements. I always wanted to work hard, so to be rewarded for it was an added bonus. At the age of sixteen I was in charge of a team who were training other outlets.

The management team had expressions such as ’time to lean, time to clean’ … Technically you never stopped working as there was always something else to do. Every company I’ve been with since have employees who only work around six solid hours out of an eight-hour day if you’re lucky; yet at McDonald’s you worked the full eight hours. I quickly moved into fine dining and eventually hotels. To this day I put a lot of my success down to the McDonald’s

discipline that I had brainwashed into me at such a young age.

One of the big issues that many employees face when employing young people from Bahrain is the lack of both experience and work ethic.

Have you encountered this?

At sixteen you can be excused for not having a skill but by 21 you’re expected to have at least some skill or experience otherwise you’re already behind in the job race. A degree no longer guarantees you a job and it most defiantly won’t automatically make you a manager as it’s the experience that counts in any industry. But I’ve noticed a lot of kids all over the world are lazy these days and want everything given to them.

I gave this advice to my kids - ’choose something that they enjoy and find a way of getting your foot through the door even if you have to work for free to begin with to gain that experience’. Straight away they have something to offer but more importantly they’re actually there if an opportunity presents itself. If you’re lying in bed – it’s going to pass right into somebody else’s hands.

I’ve employed young people in various countries and unfortunately in today’s market many of them have no work ethic and they have nothing to offer a company, therefore they’re already an expense to that company. This is a problem a lot of companies face in Bahrain. They want to employ young people but cannot afford to pay them a good salary and train

People them at the same time. I even approached a hospitality training school and offered to work in conjunction with them by offering practical training skills to students. But I was told this wasn’t possible as they had to be given the minimum wage which is around BD300 and that was just to train them - no company can afford to do that.

So I have a bit of an issue with enforced employment as no one benefits. A company ends up making up positions to employ people for the sake of their quota – which is a huge expense. These people don’t get trained nor are they given any incentive to try because it’s difficult to sack them.

I had a similar experience in Italy when I opened a restaurant with Giorgio Armani. The Italians have a legally enshrined ‘right to work’ and I found the moment a person had survived their probation period (three months) and I mean literally within a day – suddenly jobs that they’d been doing previously were now unacceptable as it wasn’t in their contract.

I understand why governments feel the need to enforce employment but it’s a vicious circle because in the long run everyone loses out – you have loads of people with no ambition and skills who will constantly be in and out of jobs on the minimum wage therefore, no future.

At the same time the constant turnover of staff becomes a big expense for any private company. Obviously you do get exceptions. So I feel these guarantees do not inspire somebody to be ambitious or motivated. Whereas when I started working at McDonald’s I was being paid one pound thirty (GBP) an hour and I knew that I wanted more but in order to make that happen I had to work harder as I had no guarantees. I was motivated by success and the prospect of more money.

Kurt Zdesar

What do you think is the secret to your success?

I have a saying which is not mine by the way, ‘The only one thing that we learn from history is that we don’t learn from history’. Too many people in business believe that what happened to someone else will not happen to them – but it does and I quickly learnt this. So I read up a lot about successful people and surrounded myself with smarter and more successful people than myself so that I could learn from them. It was twofold - whether they liked me or not I was learning from them but at the same time they knew that I knew what they wanted therefore I was a better employee. I wish I knew what I know now then because I would probably do all the same things but better. I am always making mistakes but I try to learn from them.

Gulf Insider September 2011

21

People Of all the different jobs you’ve had which one have you enjoyed the most?

That’s a tough one – I’m fortunate as I’ve loved everything that I’ve done otherwise I wouldn’t have done it. But it would probably be Ping Pong as I’d finally put my money where my mouth was. I gave up a fantastic job working with Nobu. I travelled by private jet and dined with the rich and famous. But I didn’t take the lifestyle too seriously and eventually grew tired of all the travelling and not seeing my family. I also had this nagging doubt that I was riding off the back of somebody else’s concept when I actually wanted to be a founder myself.

So I opened Ping Pong which was a great experience.

Ultimately, it hasn’t been about me but the teams I have worked with which has made it easier to be successful. I may have the vision but it’s the people that you surround yourself with which make it work. That’s where I’ve been lucky as I was able to get the right people and get the best out of them. That’s why within a year-and-a-half we had eight restaurants.

The first one was profitable within the first three months - which is not common for my industry.

We seem to have a culture of Michelin star chefs opening their own restaurants and many fail; why do you think this is?

If we’re to talk about Gordon Ramsay, the guy is making fourteen million dollars a year from TV – so he’s doing something right. But if you look at his restaurants – they’re losing money or closing down. In my opinion, it’s because he’s expanded too quickly and is unable to give his personal time to all his restaurants therefore his eye is off the ball and no one will do it as passionately as he will.

Diners and staff want to see him - not a stand-in.

Despite having 22 restaurants, Nobu has been successful because he has made it his life to be travelling every week to one of his restaurants; his staff knows he can show up at any time. The key for anyone that is growing is not to outflank their managerial capabilities.

In other words, they grow so fast that they promote others above their ability because of the pressure of expansion.

All it takes is one bad review within a chain of restaurant and it can affect

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Gulf Insider September 2011

the whole lot.

How would you describe your management philosophy?

I encourage staff to take some ownership of the business; if they do you will get a lot more out of them. I’m not a tough person and don’t believe in shouting at people and I like to think I treat staff like adults as too many businesses treat their staff like kids. I try to treat everyone equally.

Although I have found that I’ve had to adjust my management style for the Bahrain market (for the expats) and I’ve had to take on a much more non-tolerating approach because if you don’t react to a situation immediately here it will spread very quickly. Also with some staff, it doesn’t matter how much you give because it will never be enough because they really don’t care.

For example you can ‘talk’ to somebody and try and reason with them about their attitude and an hour later it’s as if that conversation never took place. That I found quite strange.

Have you come across a lot of jealousy particularly as you were a manager at a very young age?

Yes but that happens in all industries.

It’s always difficult for your peers to see another person growing. I noticed in the UK for example people aren’t happy to see others succeed, there were also some situations where I was recruited to fill a managerial position over staff that were older than me yet were rejected the position themselves on the grounds of being too young. I put this down to mental age, but this made it a challenge for me to win the staff over. But I have never come across it as much as I have here especially towards my managers. I am very surprised at how involved staff become in each other’s problems. If we have to discipline somebody we will do it behind closed doors but suddenly the whole team has an opinion on how we did it and if we were fair, etc., without even knowing the facts. Staff would rather bicker and complain behind your back than discuss it with you. I haven’t got a clue why this is. At any other time, I would have said 20 per cent has to be spent on your HR and 80 per cent on growing your business; over here it’s the other way around.

What is the biggest lesson you’ve learnt to date?

As an owner – I would say straight away, choose your partner very carefully because it is no different from a marriage. I’ve been presented with many opportunities to set up businesses where money hasn’t been a problem but declined because I haven’t liked who I was getting into business with. Getting money is not actually hard but choosing the right partner is. Also if you invest in a business that you’re not experienced at, get somebody else who is to run your business for you; but equally important make sure they have the experience in that particular country as you have to know your market.

When you look back on your career is there anything that makes you cringe with embarrassment?

Everything has played a part in who I am today so, not really. But I remember when I was first interviewed I didn’t want to bring up McDonald’s and I certainly didn’t want it in my history, but actually as I’ve grown older I’m now proud of it as I can now look back and see it was the first foundation to the path of my success.

What would you do to try and improve Bahrain’s economy right now?

I think what we all need is support from the government and I’m not just talking about large industries. I’m referring to the little businesses too. I have heard of companies moving to Dubai because they no longer have the benefits that they once did here. There used to be a lot of incentive to set up business here but slowly they’ve been removed and now it can be very expensive. I believe the government needs to go back to basics and be more flexible and allow businesses more freedom as before.

Where do you see yourself in five years?

I don’t make plans for myself but within five years, if I find the right investor, I defiantly want to have my own restaurant chain. People are starting to invest again in the UK; the government may be suffering but for individual businesses it’s getting better (at least that was until these recent riots!). But I also want to settle down in LA too. GFI

TRANSPORT

GCC TRANSPORTATION OVERHAUL A World Economic Forum report highlights what the Middle East could be doing for sustainability.

A

report released by the World Economic Forum in collaboration with Booz & Company argues that countries seeking to reduce oil dependency and emissions of their transport sector must support the development, distribution and adoption of new technologies in transport through a structured policy approach, strong public-private partnerships, risk hedging and collaborative financing.

Global transportation and fossil fuels are inextricably linked. More than 60% of the 87 million barrels of oil consumed every day powers the world’s transportation system, and liquid fossil fuels account for more than 96% of the current energy supply to the transport sector.

The ‘Repowering Transport’ report estimates that a USD400 billion annual investment is required to achieve 25% penetration of alternative energy sources (electricity, biofuels, CNG/LPG) from 2010 to 2030 and reduce total oil consumption in transport by 0.5% per year. The capital needed is moderate in relation to the USD740 billion annual expense in global oil subsidies or the global transport industry’s annual USD4,500 billion revenue. Research found that lack of financing for green transportation is not a matter of capital availability but rather of uncertainty in the regulatory environment and challenges in assessing the risk involved.

The report’s proposed two-pronged policy approach to achieve energy diversification involves establishing regulation (fuel taxes, carbon fees) and/

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Gulf Insider September 2011

or setting performance standards that the market can meet independent of the technology choice, while supporting technology-specific policies chosen based on the country’s own competitive advantage.

“Understanding the opportunities and challenges in energy supply across all modes of transport is a highly complex undertaking,” said Nick Pennell, Vice President of Booz & Company. “This report is the first to provide a comprehensive framework identifying critical enablers and ensuring deployment of the broadest range of technologies.”

The Middle East needs a whole new approach to mobility and public transport.

Specifically, the Middle East is prone to rethink its consumption of fossil fuel for transport and mobility. While already having some of the largest CO2 emissions per capita, public transport in the GCC countries only accounts for about 5-10% of all motorised trips.

Urban transport demand is expected to double by 2025 in Middle Eastern cities.

Establishing efficient public transport systems and achieving a public transport share of approximately 30-40% as planned by several GCC countries is not only beneficial to mitigate increasing congestion but also provides a significant

lever to reduce CO2 emissions in the region. “The Middle East needs a whole new approach to mobility and public transport”, says Fadi Majdalani, Vice President of Booz & Company.

“Current emission levels are simply not sustainable. A comprehensive approach of establishing excellent public transport systems and reducing the usage of private cars by means of road tolling, as well as an increase in fuel prices and a systematic demand management are required – and many cities such as Dubai, Abu Dhabi, Doha, Kuwait and Jeddah in the region are actually acting accordingly.”

Also today, freight transport and logistics in the Middle East region are highly inefficient and dominated by road transport. Governments in the region have initiated multi-billion US dollar programmes to establish a rail network in the Middle East/GCC to benefit from the lower emissions of rail freight transport and to accommodate the significantly increased demand. “Rail freight is the only measure to reduce emissions in the transport and logistics sector,” says Ulrich Koegler, Vice President of Booz & Company. “Yet, it is not even enough to offset the emissions which will result from the growth of the sector.

In land transport, a comprehensive programme of tight emissions charging schemes and promotion of modern and emission efficient technologies as well as taxation of fossil fuels is required simply to maintain current levels of CO2 emission. But the sector can do far better. A fundamental restructuring of

TRANSPORT

the supply chains and technology-driven improvements of truck fleet utilisation have been key factors in the reduced emissions sector in Europe.” Also, recent experiences in slow steaming in maritime transport have shown that this process can not only be beneficial to the cost of transport but also reduce fuel consumption by up to 20%.

Still, the Middle East region as a whole has not embarked on a programme of modern and biofuels. “We see Brazil, Germany and many other countries paving the way to complement fossil fuels with bio-generated components”, states George Chehade, Vice President of Booz & Company. “These countries truly invest in CO2-reducing fuels.

Already today’s engine technology can accommodate a significant share of biofuels and we expect that in the near term the technology will allow for up to 30% and more of bio-components. Yet, there are no policies and incentives across the region for the industry to provide such modern fuels. It will not happen on its own – this is a call for government regulation and support to make it happen.”

Also, the automotive industry is working intensively on providing cost-effective electric vehicles. While energy storage of batteries used in electric vehicles is still a significant challenge, the Middle East regions solar power potential could be a great source of energy provision. “Why do we need to wait for Siemens and other Western industry players to come up with programmes such as ‘Desert

This is the time where the Middle East/GCC could truly pave the way for emission-free mobility and transport.

Tec’ to provide solar power on a large scale?” asks Walid Fayad, Vice President of Booz & Company. “Masdar, the Abu Dhabi-based renewable energy company is developing concepts and technologies for 100% emission-free transportation.

This is the time where the Middle

East/GCC could truly pave the way for emission-free mobility and transport.

However, significantly larger innovation and investment efforts are required.”

John Moavenzadeh, Head of Mobility Industries at the World Economic Forum said: “The report finds that oil will continue to be the dominant fuel for transportation over the next 20 years, but innovative partnerships among business, government, academia and civil society markets are accelerating technology development of alternative sources.”

The report sets out a framework to identify the most useful partnerships at each point of the technology lifecycle. Successful partnership case studies at the global and country level are featured in the report, including examples from Canada, Sweden, the UK and the US. The first interactive online data bank for transportation partnerships complements the report’s findings, featuring 50 partnerships so far and is intended to be a resource for stakeholders in the partnership ecosystem of the transport industry: www.partnershipsforenergy.com GFI

Gulf Insider September 2011

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MANAGEMENT

THE CEO SUCCESSION STUDY With emerging economies on the rise, 2010 CEO turnover falls sharply, finds the Booz & Company annual global CEO Succession Study.

I

n 2010, CEO turnover at the world’s largest 2,500 public companies saw its sharpest year-over-year decline (19%) of the past decade, falling to 11.6%, according to Booz & Company’s 11th annual CEO Succession Study. At the same time, the share of companies headquartered in emerging markets grew to more than one-quarter of the world’s top companies, exerting significant influence on succession rates due to both their governance structures and fast growth rates. Also contributing to chief executive tenure is how closely involved headquarters is in operational decision making; CEOs who are more hands-on tend to exit office quicker, according to a new Booz & Company analysis.

The rate of CEOs forced from office fell to 2.2% globally in 2010, declining 36% from 2009 and the lowest rate of chief executive terminations since 2001.

Planned departures declined by 1.4% to 7.7%. Last year, overall succession rates, which also include merger-driven departures, held stable in North America (11.1%) and increased in Japan (18.9%), while falling in Europe (10.2%) and the rest of Asia (also 10.2%).

Booz & Company’s study of worldwide CEO succession patterns examines the degree, nature and geographic distribution of chief executive changes among the world’s 2,500 largest public companies. This year’s report, “CEO Succession 2010: The Four Types of CEOs,” focuses on the role of the CEO and core senior management team, examining how they engage with the businesses they lead and the resulting

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Gulf Insider September 2011

effect on tenure and turnover. Among the report’s key findings:

• Asian economies are becoming the new centre of gravity. China, Japan and the rest of Asia comprised the largest “bloc” in the world’s top public companies, with 895 companies, versus North America’s 772 companies and Europe’s 618 companies. For the first time, almost half the top 2,500 are located outside North America and Western Europe, not only in the BRIC countries but in the “next eleven” emerging

CEOs promoted from within the company have historically produced superior returns for their shareholders. nations. The number of companies in the top 2,500 from BRIC (Brazil, Russia, India and China) has grown 24% on average annually since 2000, while Chinese companies alone now account for one in five new companies in the world’s top public companies.

• China is a major, but not sole, reason for declining CEO exit rates. China’s extremely low turnover rate (5.2%) – less than half the global average – is a major reason for 2010’s turnover decline, and could be attributed to its high degree of government ownership, even in public

companies. That said, important factors other than China are keeping a higher proportion of CEOs in office, according to Ken Favaro, Partner at Booz & Company.

“Lingering recession aftereffects are encouraging companies to keep current leadership in place, and we’ve also seen improved CEO selection and succession practices. Further, given historically high rates of forced turnover, there are fewer CEOs to replace.”

• “Insider CEOs” rule the roost. CEOs promoted from within the company have historically produced superior returns for their shareholders, and last year the gap widened as insiders generated total shareholder returns on a regionally adjusted basis of 4.6%, compared with 0.1% produced by outsiders. Insiders also left office after an average 7.1 years, versus 4.3 years for outsiders. Among last year’s 291 outgoing CEOs, 81% were insiders when they took the chief position.

• CEO tenures have shortened over the past ten years. Overall, CEO tenures were on average 18 months shorter in 2010 (6.6 years) compared to a decade ago (8.1 years). And the length of planned tenures, in which the CEO departs on a date prearranged in agreement with the board, has dropped by 30% over the last ten years, from ten to seven years.

• Long-term trends in governance still hold. Boards increasingly separate the roles of chairman and CEO, especially in North America, where only 14% of incoming CEOs were assigned both titles in 2010, versus 52% in 2001. The practice of appointing an outgoing CEO as board

MANAGEMENT

chairman to apprentice the incoming CEO is growing in prevalence worldwide and was the case 54% of the time in North America last year and accounted for twothirds of the succession events in Japan, where it has long been the norm.

This year’s report includes an analysis of four corporate management models defined by the way the corporate core – made up of the CEO, the core senior management team and key support services —engages with the rest of the business. These are the holding company, strategic management company, active management company and operationally involved company. These four corporate management models clearly influence the CEO’s experience in office, according to Booz & Company.

“Incoming CEOs need to recognise that there are many factors contributing to the amount of time they’ll have to be successful,” said Gary Neilson, Booz & Company Senior Partner. “Particularly if they come in from the outside or run an operationally involved company, their time horizon to make an impact is much narrower than they might expect.

Awareness of their corporate core model can help them lay the groundwork for success early, and perhaps prevent an unplanned exit.”

Additionally, the study found:

• The Middle East comprised 2.2% of the world’s top public companies, with 54

The Middle East comprised 2.2% of the world’s top public companies, with 54 companies. companies. Of these companies, nine, or 16.7%, experienced CEO turnover in 2010; three of which were forced, six planned, said Bahjat El-Darwiche, Partner with Booz & Company.

• The energy sector saw the highest level of overall CEO turnover in 2010 at a rate of 16.3%, well above the

global turnover rate. Materials and telecommunications followed at 14.8% and 13.9%, respectively. The lowest succession rates were in the consumer discretionary (7.2%) and consumer staples (7.7%) sectors.

• Energy companies also claimed the highest forced CEO turnover rate among the sectors studied at 6.2%, a sharp increase over 2009. Healthcare CEOs were also dismissed at a much higher rate than the prior year – from only 0.6% in 2009 to 4.2% last year.

• Conversely, financial services companies collectively saw among the sharpest decreases in forced departure rates, from 5.2% in 2009 to just 2.1% last year. Dismissals within the industrials sector also declined significantly to a rate of just 0.5%. GFI

Booz & Company is a leading global management consulting firm, helping the world’s top businesses, governments, and organisations. For the management magazine ‘strategy+business’ and to read the full study visit strategybusiness.com. For more information visit www.booz.com

Gulf Insider September 2011

27

GCC

GCC countries among best international apparel retail locations

T

hree GCC countries feature among the top five most attractive apparel retail hotspots, in addition to China and Russia, reveals the latest Retail Apparel Index, a study by global management consulting firm A.T. Kearney.

China ranks as the most attractive emerging market for apparel retailers, driven by the country’s large population and the growing disposable income of the middle class. With its compound annual growth rate of more than 20 per cent in recent years, apparel retail in China has grown at a rapid pace, and this trend is expected to continue for the next five years. China was followed in the ranking by two Middle East countries, UAE and Kuwait, then by Russia and Saudi Arabia.

“The high ranking of GCC countries highlights continuing opportunities for regional and international fashion retailers to further grow in these markets. It is important to understand the current concentration and maturity of fashion retail at a granular level, to best take advantage of the growing demand,” observed Dan Starta, partner and managing director, A.T. Kearney Middle East. “The apparel market in the region continues to evolve as we see a growth trend in new luxury retailers entering the market and an expanding base of more mainstream international and regional players,” he added.

The United Arab Emirates holds the second position in the 2011 Apparel Index, driven by a population with a high disposable income and immense fashion consciousness. The expatriate populace and tourism in particular are

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Gulf Insider September 2011

driving forces of consumption in this market. Additionally, the UAE is a regional commerce centre in the Middle East and is a preferred market for entering the region as well as testing new products and retail formats.

Kuwait is ranked number three in the Apparel Index. Key factors driving retail growth in Kuwait are a favourable longterm economic outlook, a sophisticated consumer base with high levels of disposable income and fashion awareness, more women entering the workforce, and a significant expansion in retail real estate. The gross leasable retail space in Kuwait has expanded from 345,000 square metres in 2006 to 1.15 million square metres in 2010.

Saudi Arabia on rank number five with 29.2 million citizens is clearly a retail

hot spot worth watching. Consumer confidence in Saudi Arabia is high and consumer spending is increasing rapidly, with most disposable income spent on food, apparel, health and beauty. Saudi Arabia’s young population (two-thirds under the age of 29), with its high discretionary income are considered key targets by the fashion industry.

“The three GCC countries also feature in the Global Retail Development Index amongst the top 10 retail destinations.

The findings of both surveys are therefore extremely interesting for retailers and mall developers, to ensure they extend the best offerings internationally, across the GCC and definitely in the three very attractive Middle Eastern markets of UAE, KSA and Kuwait,” concluded Starta. GFI

A.T. Kearney Retail Apparel Index, 2011 Rank Country

Market Attractiveness

Retail Development

Country Risk

Score

1

China

37.0

14.3 10.1

61.4

2

UAE

38.8

8.2 11.9

58.9

3

Kuwait

31.4

7.2 9.9

48.6

4

Russia

30.4

8.1 7.8

46.4

5

Saudi Arabia

25.6

7.4 10.9

43.9

6

India

25.8

8.0 8.2

42.0

7

Brazil

23.6

7.5 9.0

40.1

8

Turkey

21.3

7.3 8.8

37.4

9

Vietnam

23.3

6.9 7.1

37.3

10

Chile

16.4

8.3 12.2

36.9

PEOPLE

THE GRILL Gulf Insider grills founder and managing director of Frontline Media Solutions, Mishal Rajab.

W

hat does the future of Bahrain’s economy look like?

Our economy has just encountered a minor speed bump, which we are currently overcoming. Current economical indicators are pointing up and if that means anything it is that the economical future of Bahrain is looking quite bright especially with the wisdom and knowledge of our leaders.

Bahrain is, has been, and will always be one of the most popular business destinations in the Arabian Gulf because of its open market and friendly business atmosphere.

How is your company helping Bahrain reach its 2030 Vision goals?

My company strives to help Bahrain reach the goals of the 2030 vision by trying our very best to enhance the skills and productivity of our resources. We also try to revive certain ignored areas of the market by focusing and investing in those segments.

If you could bring anything to Bahrain that is not already here, what would it be?

Personally, I would love to invite and invest in more entertainment and tourism projects in Bahrain, as I see massive

TO THE POINT: SCIROCCO Comeback of a sports car legend: Gulf Insider very own publisher, Nick Cooksey was given the opportunity to test drive the latest car from motoring giant Volkswagen.

W

e recently had the pleasure of driving a VW Scirocco around the hustle and bustle of Dubai. It’s an affordable car with everyday utility, and front-wheel drive also made it a safe sports car for use every day of the year.

The new Scirocco is essentially a Golf GTI but with a lower, sportier shell. Inside it offers pure driving pleasure, a new powerful design, high-end technologies such as DCC adaptive chassis control and the new seven-speed DSG dual clutch transmission. Although the third generation of the Scirocco follows exactly the same positioning as the first one, Volkswagen very intentionally avoided retro elements.

Two-litre turbocharged engine? Check.

Six-speed DSG gearbox? Yep. Front-

wheel drive? Absolutely. Flat-bottomed steering wheel? Ticks that box. Familiar platform? Of course. Three doors?

Affirmative.

It shouldn’t come as a surprise to learn that VW hasn’t built its new Scirocco from scratch. Not only is it longer, wider and almost 100mm lower, but track widths are up 35mm at the front and a generous 59mm at the rear, while the springs, dampers and anti-roll bars have all been returned. What’s more, the back axle is entirely different to the Golf’s.

capabilities in this field.

Do you think a single GCC currency is a good idea?

Absolutely. This will secure economic stability and will surely eliminate currency instability in the participating markets.

Consumers will spend more freely on consumables from the whole region, be it a house on a beach or a piece of furniture; the easier it is to spend, the more we spend!

What is the best piece of advice you could give to budding businessmen?

Keep your head up. GFI

Compared with the Golf GTI, which admittedly isn’t the snappiest hot hatch, the Scirocco is more agile and energetic.

It also seems to gain speed faster. VW claims the same 7.2sec 0-62mph time for both cars, but given the coupé weighs 38kg less, we reckon that’s rather pessimistic. It moves smartly off the line and once into second and third you’d swear the needles move a bit faster through their arcs.

The two-litre turbo engine is as impressive as ever, with oodles of midrange shove, a decent exhaust note and a nice pop when you change up with the (optional) DSG gearbox. GFI

For more information, and to book your own test drive, contact Volkswagen on Tel. +973 1745 9977.

Gulf Insider September 2011

29

DUBAI

THE STEALTHY EXPAT EXIT

By Annabel Kantaria

W

hen expats leave, should they tell everyone – or could a quick and silent exit be better?

One of my dearest friends left Dubai last month. Aside from simply enjoying each other’s company, in the seven years that we knew each other we worked together, went through pregnancy together, went on holiday together, shared the school runs, spent Christmas together and were always there for each other in the way only expat friends – lacking an extended family in their adopted home – can be.

Our first-born children, now six, have grown up together, their lives entwined like sisters.

Yet, we’re expats and I always knew, deep down, that my friend wasn’t a “lifer”; that there would come a day when she said, “That’s it, we’re leaving,” and I’d be left waving her off with a lonely child to console and a gaping hole in my life.

That day came, and I didn’t even know it. Leaving Dubai for her annual trip home, my friend sent me a final text from the departure lounge, “Have a great summer! I’ll mail you!” and she

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Gulf Insider September 2011

was gone. Two days later, the email arrived, but it wasn’t the chatty one I was expecting. In it, she broke the news that, actually, she wasn’t coming back.

Unable to face saying goodbye to her friends and the Dubai life that she loved, she’d decided not to tell anyone until it was too late. I’m devastated – but would

We adults know we’re expats; that we’re not in our home country and are surrounded by people who’ll eventually leave. it have been easier had she told me in advance?

If she had, we’d have gone through the agony of “final” nights out and leaving dos. Every event would have been tinged with sadness. Inevitably, as my

friend’s leaving date approached, I would have withdrawn a little, relying more on my remaining friends and pulling back my daughter, too, because, difficult as it is for an adult to lose a friend, it’s even worse for children.

We adults know we’re expats; that we’re not in our home country and are surrounded by people who’ll eventually leave. But my daughter doesn’t see herself as an “expat”. She was born here and the only life she’s known is here. That her closest friend should simply disappear is incomprehensible.

“What about school? She’s going to be in Miss so-and-so’s class!” she said, as I explained that she was going to have to make new friends.

You may think it strange, but I don’t blame my friend for not saying goodbye.

For us, it was better that way. She’d arranged a special night out a few nights before she left – with hindsight, she knew it was her leaving do, but all I have is fond memories of a lovely evening – and of a friendship that will no doubt continue, albeit via a Boeing 777 instead of a bicycle. GFI

dubai

problems hit Dubai’s Palm

By Bonnie Malkin

R

esidents of the Palm Jumeirah, Dubai’s man-made island that is shaped like a giant date palm, are being forced to wash in the sea and visit lavatories at a nearby mall after a water pipe in one its exclusive apartment blocks ruptured.

Severe plumbing problems hit the gated, seven-building Oceana complex in July, and so far the property managers have not been able to fix them.

The crisis means that, in temperatures of 42C, Oceana residents have had to endure the ignominy of showering at nearby pools and scrubbing themselves down in the Arabian Gulf. For anyone needing to use the lavatory, there is only one option: public amenities at the local shopping centre.

And management of the Oceana have given no timetable for when the pipes will be fixed.

The dire sanitary situation is a far cry from the glossy images used to sell apartments at the Oceana.

Flats in the complex, which is located on the Palm’s trunk – or Golden Mile sell for between USD420,000 for a onebedroom unit and USD750,000 for a three bedroom apartment.

The company’s website claims that each apartment in the complex provides

“spacious layouts, high quality finishes and panoramic views to the garden, beach and marina”.

Fortunately, the units are also “within walking distance to the Village Centre Shopping Mall”.

While the plumbing problems do not extend to the multi-million pound villas, lavish hotels and apartment blocks on the rest of the Palm, the extravagant project

For anyone needing to use the lavatory, there is only one option: public amenities at the local shopping centre. has not been without its own problems.

Stretching almost four miles into the sea and big enough to be seen from space, the Palm’s trunk and 16 fronds, which were constructed from rock and sand dredged from the seabed of the Arabian Gulf, were once some of the most coveted pieces of real estate in the world – especially among Britons, who

own about 25 per cent of properties on the island. When the first 2,000 villas and town houses on the island went on sale in 2002, they sold out in a month.

Styled by its owner, the governmentbacked Nakheel property development company, as the “eighth wonder of the world”, the Palm captured worldwide attention when David Beckham, Michael Owen and nine other members of the England squad bought “signature villas” there when they visited Dubai en route to Japan and South Korea’s 2002 World Cup. But there has been trouble in paradise.

Some of the “Palm pioneers”, who were among the first to move onto the island, complained of their expensive villas being squeezed together like sardines, skyhigh air-conditioning bills and repeated snags that led some to joke it should be renamed the “eighth blunder” of the world.

Then, during the height of the global financial crisis in 2008, property prices fell by as much as 40 per cent.

The economic turmoil also affected the pace of construction of the artificial archipelago, and two other palms that were being built beside it, setting completion dates back by several years. GFI

Gulf Insider September 2011

31

Saudi Arabia

Saudi Arabia to build world’s biggest tower

Prince Alwaleed bin Talal

T

he world’s biggest tower is to be built for USD1.2billion in Saudi Arabia by the Bin Ladens.

Prince Alwaleed bin Talal said he had signed a deal to build the 3,280ft high Kingdom Tower north of the Red Sea city of Jeddah.

That tower has 160 liveable floors and rises 2,717 feet, making it not only the tallest building but also the tallest freestanding structure in the world.

A model of the world’s tallest tower stands next to Prince Alwaleed bin Talal as he speaks at a meeting

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Gulf Insider September 2011

The sprawling mega project, first announced in 2008, will cover two square miles at its base. It will stand a kilometre high and is the first in a sprawling mega project for a plan called ‘Kingdom City’.

It will include a hotel, serviced apartments, luxury flats, and offices occupying around 852 square miles.

Originally, the intention was to build the tower a mile high - a feat that would mean a 12-minute journey in a lift to get to the top - but there were fears that the soil would not support its foundations.

Prince Talal said the construction would be built by the Binladen group Construction company, Saudi Binladen Group has been given the contract to build the structure, one of seven ambitious projects in the kingdom which is OPEC’s top exporter of oil.

The work is intended to diversify the economy from the crude oil that has fuelled the kingdom’s growth for years.

It also reflects a continuation of the unstated race between the oil rich Gulf nations that are also pumping tens of billions of dollars into job creation and housing for their lower income residents.

In June 2009, KHC signed a deal with Dubai-based Emaar Properties to develop and oversee the

Saudi Arabia construction of Kingdom City and Kingdom Tower.

Emaar, which is partly owned

by Dubai’s government, is the developer of the Burj Khalifa, currently the tallest building in the world.

Alwaleed’s proposed skyscraper would shatter the record for Burj Khalifa, which opened in January 2010. That tower has 160 liveable floors and rises 2,717 feet, making it not only the tallest building but also the tallest free-standing structure in the world.

By comparison, the tallest building in the United States, the Willis Tower in Chicago, stands at 1,451 feet, although counting its antenna towers it rises to 1,729 feet.

Prince Alwaleed wants the tower to ‘send a message of strength’ in tough economic times.

While Jarmo Kotilaine, chief economist at Jeddah-based National Commercial Bank, said: ‘To a significant extent

Incredible: How the world’s tallest tower, to be built in the Red Sea city of Jeddah, will look

these types of projects are confidence and image-building measures. They are used to enhance the identity of a city and to demonstrate a strong, booming economy.’

The One World Trade Center tower being built in New York on the site of the twin towers destroyed on September 11, 2001, will measure 1,776 feet with its antenna spire. It is due for completion in 2013.

Dubai developer Nakheel had planned to build a tower more than 0.6 mile high in the city-state, but shelved those plans in early 2009 as the global economic crisis soured demand for real estate in the emirate.

The Kingdom Tower deal was signed between Jeddah Economic Co., a KHC affiliate, and the Binladen Group, a construction giant. Binladen will hold 16.6 percent stake in JEC. GFI

Eclipsed: The new Kingdom Tower will be taller than the Burj Khalifa in neighbouring Dubai (left) and also New York’s Freedom Tower (right)

Gulf Insider September 2011

33

roundup

Use and Misuse of Social Media in Dubai

Gulf Round-Up

By Annabel Kantaria

Johann Hari: Will Any Other Dubai-bashers be Taken to Task?

The cab driver who took me from Heathrow Airport to my mum’s house last month was delighted to hear that I live in Dubai. For the hour it took to crawl a few junctions around the M25, he bombarded me with questions about what it’s like to live there, how he could get a job, how much he could save in a month, how he could get a visa, and what he’d have to do to get his family there, too.

It was a refreshing change from arriving in the UK last summer, when the public negativity towards Dubai, caused by a clutch of Dubai-bashing articles printed in the British media in 2009, made me nervous to even admit that I lived in the UAE. Last summer, all that people in Britain wanted to know was: Was I sleeping in my car, how many expat cars were abandoned at the airport, and was my devalued house gently crumbling back into the sand on which it was built?

So it’s with some curiosity that Dubai residents have been following the case of troubled but awardwinning journalist Johann Hari, who’s currently suspended from his job at The Independent. It was, after all, Hari’s 2009 article, “The Dark Side of Dubai” that perhaps caused the most outrage amongst those who actually know Dubai, peppered as it was with

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Gulf Insider September 2011

sensationalist gems such as “all over the city, there are maxed-out expats sleeping secretly in the sand-dunes or the airport or in their cars.”

At the time, HH Sheikh Mohammed bin Rashid Al Maktoum, while not specifically mentioning Hari’s article nor The Independent, said in Dubai’s defence, “it is truly sad to find international publications that have usually boasted about factual and precise reporting issuing articles based on mere rumours and baseless speculations.”

Meantime, The National reported that Dubai-based British expat, Chris Saul, in conducting a ‘forensic analysis’ of Hari’s Dubai article in a blog post back in 2009, even then identified holes in the methodology of Hari’s journalism, not least by questioning interviews with two ‘unidentifiable’ characters from whom Hari claimed to have gained much of his information on Dubai.

Hari is currently facing an investigation by The Independent into his journalistic practices. If Hari is taken to task for shoddy journalism resulting in articles that don’t reflect the truth, it sets an interesting precedent for a few more of the famed articles from the Dubai-bashing era. We watch with interest.

The UAE loves its social media.

Whether it’s Facebook, Twitter, blogs, iPhones or BlackBerry Messenger (BBM), this hot and dusty corner of the world has, it seems, got it covered and BlackBerry, with 51 per cent of the smart phone market in the UAE, is the device of choice.

Even Dubai police has got in the action, last month becoming the first police department in the world, I understand, to announce its own BBM PIN for members of the public to use.

But, while social media is great when it’s used responsibly, what happens when you say something you shouldn’t?

How culpable are you exactly?

In July, a British expat found out that Big Brother really is watching when Dubai Courts fined her Dhs 3,000 for posting a Facebook update that was derogatory about the Holy month of Ramadan, then going on to insult her Muslim colleague.

Meanwhile, and more seriously for Dubai Police, a series of misdemeanours carried out by BlackBerry caused authorities in Abu Dhabi recently to introduce a three-year jail term for the ‘spreading of malicious rumours and fake news’ via smart phones and social networking devices.

Specifically, the new law was introduced after a series of BBM rumours was spread by businesses in order to discredit their competitors.

In Al Ain, a rumour was spread that a worker at a beauty salon had tuberculosis; in Ras Al Khaimah, BBM rumours claimed that a dental clinic had been closed down after infecting a patient with hepatitis A, and that a large government hospital had suffered a massive fire.

Even more seriously, Dubai Police itself became a victim to misuse of social media when a BBM containing a link that, when clicked, dialled the emergency number, 999, circulated quickly through the emirate earlier last month. According to the Gulf News, the emergency operations room received 14,000 calls in five hours, an increase of 120 per cent, causing a spokesman from the Ministry of Interior to request that BlackBerry users ’take advantage of technology but desist from using it as a tool of revenge.’

You have been warned.

roundup

Should Naming and Shaming be Allowed?

Members of the public using websites, internet forums and social media to ‘name and shame’ bad drivers and businesses offering bad customer service have been warned by Dubai Police that doing so is a crime that warrants a jail term of up to years and a fine of up to AED 20,000, according a report in The National newspaper.

As public reviews on websites such as tripadvisor.com, blogs and online discussion forums have increased in popularity, the idea of naming and shaming has caught on to some extent in the UAE. A year ago, property developer Emaar said it was going to publish the names of residents at its projects who failed to pay their service fees on time, while the Abu Dhabi Food Control Authority (ADFCA) announced in May this year that it would be naming restaurants and food outlets that faced closure due to unhygienic conditions.

The recent warning from Dubai Police was prompted after an anonymous Dubai resident, set up vigilante website Dubainameshame.com and Twitter account @DubaiNameShame three months ago for members of the public to post pictures or report number plates of cars whose drivers were breaking the law through bad driving or inconsiderate parking.

The concept – to act as a deterrent for those who didn’t want to see their number plate publicised and to publicly shame those who continued to break the law – was born out of a genuine desire to make Dubai’s roads safer, and it caught on quickly with people Tweeting number plates of bad drivers and uploading pictures of cars hogging two parking spaces or parked in disabled bays. It was, however, a concept that laid itself wide open to abuse.

Dubai Police, who are actively battling to reduce the number of road deaths in the emirate from 7.11 per 100,000 in 2010 to zero by 2020, have asked that, instead of publicly naming and shaming reckless drivers, members of the public report incidences to them directly via Twitter, email or on a dedicated telephone hotline to allow them to investigate directly.

The person behind DubaiNameShame has backed down gracefully in the face of the law. The Twitter page now runs a statement saying, “Due to legal reasons we will not be able to tweet any further ‘shame’ tweets!� while the website runs an apology of sorts: “Sadly due to an unforeseen UAE law it has come to my attention that publishing pictures of bad, inconsiderate drivers on the internet through Twitter or any other site is illegal. With this in mind and in order to ensure I follow and respect the laws of the UAE, this site will now be closed while it is redesigned to promote news and events in Dubai and the UAE.�

He continues, “I believe DubaiNameShame was making a positive impact into promoting safer driving but that said I also believe Dubai Police are undertaking some very good awareness programs and initiatives that will lead to a safer environment for us all.� Let’s hope.

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35

book review

Read my tips Julian Birkinshaw, author of Reinventing Management and co-founder of MLab, names 10 books that ought to be on the bookshelf of anyone interested in management innovation.

01. The Future of Management, Gary Hamel (with Bill Breen) Is your company stodgy? Hamel urges you to abandon a command-and-control management style. The organisations that adapt to rapid change, shed legacy management beliefs, embrace unconventional management practices and make necessary changes represent the future of management. (288 pages, Harvard Business School Press, 2007) 02. The Age of Heretics: A History of the Radical Thinkers Who Reinvented Corporate Management, Art Kleiner Kleiner defines a ‘heretic’ as someone fiercely loyal to the company yet identifies truths that defy conventional wisdom.

This book is a collection of fascinating stories that offer wisdom from those who sought and found new ways to lead.

(432 pages, Jossey-Bass, 2008) 03. The Future of Work: How the New Order of Business Will Shape Your Organization, Your Management Style and Your Life, Thomas W. Malone Malone’s book is even more relevant today with the rise of Web 2.0 marketing tools. Since its publication, technology has allowed small firms access to outsourcing, global connections and less hierarchy. Decentralisation has unlocked energy and creativity, creating new markets and relationships. (240 pages, Harvard Business School Press, 2004) 04. Management Innovators: The People and Ideas that Have Shaped Modern Business, Daniel A. Wren and Donald G. Greenwood This concise volume profiles more than

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Gulf Insider September 2011

31 innovators, from Eli Whitney to Peter Drucker. Each person featured is placed within the business and social context of his time, thus providing a much broader context for breakthrough thinking. (272 pages, Oxford University Press, 1998) 05. Strategy and Structure: Chapters in the History of the American Industrial Enterprise, Alfred D. Chandler, Jr. Chandler provides one of the first investigations into how 70 of the largest US companies retooled when facing rapid expansion. He analyses how companies such as DuPont and GM became modern decentralised corporations. (480 pages, Beard Books, 2003) 06. Maverick! The Success Story Behind the World’s Most Unusual Workplace, Ricardo Semler At only 21, Semler rebuilt his father’s Brazilian firm, Semco, by applying radical ideas: allowing employees to determine their own schedules, pay scales and dress codes while reducing paperwork and abolishing bureaucracy. (332 pages, Random House, 2001) 07. Birth of the Chaordic Age, Dee Hock ‘Chaordic’ (from ‘chaos’ and ‘order’) describes a new form of organisation.

Hock believes not only that order can be born of chaos but also that the chaordic age will be the dawning of new individuality, liberty, community and ethics. (345 pages, Berrett-Koehler Publishers, 1999) 08. What’s the Big Idea? Creating and

Julian Birkinshaw Capitalising on the Best Management Thinking, Thomas H. Davenport and Laurence Prusak with Jim Wilson It isn’t enough to recognise a good idea.

Idea practitioners must assess, scan and track ideas to the marketplace. To do this, they must refine the right idea for their organisation, package and sell it all the way to successful implementation. (256 pages, Harvard Business School Press, 2003) 09. Enterprise 2.0: New Collaborative Tools for Your Organization’s Toughest Challenges, Andrew McAfee McAfee’s case studies illustrate how leaders are using Web technologies to discover new ideas, markets and ways to make decisions. This is a must read for executives, strategic planners and information technology leaders.

(240 pages, Harvard Business School Press, 2009) 10. The Wisdom of Crowds, James Surowiecki Surowiecki believes, under the right circumstances, groups are smarter than the smartest individual. He shows how collective wisdom can succeed or fail, with practical applications for any organisation.

(336 pages, Abacus, 2005) GFI

Birkinshaw is a professor of Strategic and International Management, Senior fellow of the Advanced Institute of Management Research and Deputy Dean for programmes in London Business School. His latest book is Reinventing Management: Smarter Choices for Getting Work Done.

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Child Labour

And we think that we are working hard!

This happens even today - Sad But True

Y

ou think that you have problems?

Meanwhile you are no doubt looking at these real life photos in an air conditioned home or office, while sitting in a comfortable chair.

As you can see, not everyone enjoys such comforts. Lets join our hands to stop child labour in every possible way we can!

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Gulf Insider September 2011

Child Labour

Gulf Insider September 2011

39

DUBAI

GIVE ME A BREAK: STOP KNOCKING DUBAI Expat Bill Larkworthy is fed up of hearing people criticise Dubai.

K

nocking Dubai has become the sport du jour of the Western press. The most recent article I read was smug, arrogant, inaccurate and appeared in a pop culture magazine catering to the rich, the spoiled and the vacuous – precisely the sort of characteristics the writer, an English journalist, accuses expat Dubai Brits of possessing.

But I’m fed up with the oft-repeated stories of Dubai’s shortcomings, and I’d like to give my own take on the place.

Do I have credentials? Well, I practised as a doctor in Dubai from the mid-eighties to a couple of years past the millennium, very happy years for me. Happy? How come happy with all Dubai’s alleged problems? Climate, dust, boredom, one law for “them” and one law for “us”, endlessly gridlocked traffic, spoiled young Emiratis, empty office blocks, abuse of Asian workers etc, etc?

For a start, you were safe there roundthe-clock, which is more than can be said for many areas of London or Paris.

Once after taking a taxi from the airport to my home in the early hours, paying off the driver and turning to pick up my suitcase I heard a snort in my left ear. It

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Gulf Insider September 2011

was a horse, a Dubai police horse. Its uniformed rider saluted me, smiled and asked, “Are you happy to be home, sir?”

Several pairs of horseback policemen silently patrol Dubai throughout the night – how often do you find routine police patrols at night in any UK city?

Several pairs of horseback policemen silently patrol Dubai throughout the night – how often do you find routine police patrols at night in any UK city?

And the climate? Admittedly it’s tough in the summer, though the heat is made tolerable with universal air-conditioning and the comparative lack of hedonistic tourists. But for the other six months of the year it is very pleasant, with warm sunny days and cool nights.

Dubai’s governance works; a bit of wasta (influence) does little harm; the culture, although business-orientated, is essentially benign and ceaseless in its vigilance for extremism.

Just a few months ago I was given a piece of extraordinary news: that my memoir had been banned in Dubai. I don’t know why. Perhaps I offended an eccentric sheikh by describing his villa as a sinister black Gothic château. But regardless of the ban, Dubai was good to me, and I wouldn’t dream of retracting the good things I’ve said.

Still, I sometimes wonder if, lurking around the corner is the future that the visionary father of modern Dubai, Sheikh Rashid, repeatedly predicted: “My grandfather rode a camel, my father rode a camel, I drive a Mercedes, my son drives a Land Rover, his son will drive a Land Rover – but his son will ride a camel.” GFI

You can read more of Bill Larkworthy’s take on Dubai and the Middle East in his memoir, “Doctor Lark – the benefits of a medical education” published by Mosaique Press.

SOCIAL MEDIA

FACEBOOK ARABIC RISING On Facebook, Arabic is becoming the language interface of choice for the Arab world. - By Carrington Malin

T

he Arabisation of Facebook is fascinating to watch. Facebook’s Arabic platform is growing at 175 per cent per annum; about double the rate of overall growth, with growth in Arabic speaking users in Egypt and the Levant being over 200 per cent. On the other hand, Facebook English users in the Arab world grew ‘just’ 45 per cent during the same period.

Until recently many marketers pretty much took for granted that the region’s Facebook users were English-speaking Arabs or expatriates, using Facebook in English and representing a fairly elite group of online consumers. It has become apparent that this is now far from being true.

This time last year we pointed out that the number of Facebook subscribers had reached a point where they outnumbered the newspapers being bought across the region: no longer a minority interest.

The Arab Spring put paid to the idea that Facebook appeals to a narrow demographic in MENA. Now, with nearly double the subscriber base of May 2010, users of Facebook’s Arabic interface account for more than a third of all Arab world Facebook subscribers. By the year end, the number of Facebook Arabic users alone can be expected to outstrip

the region’s newspaper circulations, while we may even see Facebook Arabic numbers achieve parity with the use of Facebook English versions.

This process is to be expected and is consistent with a new technology being adopted by a relatively young, highly educated, English speaking audience and then finding greater acceptance from ‘the street’ across the region, reaching deeper into society and also spreading from the cities. It goes without saying that pivotal to this process was the introduction of the Facebook Arabic interface itself in 2009.

The number of users of Facebook’s Arabic interface in the Arab world now stands at nearly ten million, being about 35 per cent of the region’s Facebook subscribers (compared with just 24 per cent in May 2010). As might be expected, Egypt leads in the number of Facebook Arabic users, with 3.8 million users or 56 per cent of its Facebook users opting for the Arabic language version. Fortyone per cent of GCC users overall now use Facebook Arabic and 61 per cent in the Kingdom of Saudi Arabia (the UAE’s adoption of Facebook Arabic being the lowest at just ten per cent).

So, what does this all mean for the region’s marketers? Well, for starters, if

61% of Saudi Facebook users now use Facebook in Arabic

*Facebook Arabic users as a percentage of total Facebook users

you’re a consumer brand you really can’t afford to ignore Arabic in your Facebook marketing. There’s a fast growing audience of consumers on Facebook that are most comfortable using Arabic online and this audience is going to have different demographics, behaviours and content requirements. We can expect Arabic to become the most popular Facebook language version in the region within a year and for the growth in English language users to slow further. In terms of country requirements, Facebook now makes more marketing sense for Egypt and Saudi, where Arabic users are joining the platform in numbers.

The exception to the rule, as usual, is the UAE, which is likely to continue to be unrepresentative of the region with the dominant Facebook language being English for the foreseeable future.

Since Facebook seems to be becoming the region’s premier platform for sharing Arabic content, this is also going to put a premium on Arabic language content generation and so we can realistically expect pressure on the region’s existing skilled resources for the creation of quality editorial material, written, filmed or recorded, for Facebook. GFI

Facebook now has 7.6 million subscribers in Egypt

*Numbers of Facebook subscribers in Egypt May 2010-May 2011

Gulf Insider September 2011

41

Pirates

Spirit of Adventure: Behind the rise of the Somali pirates Michael Nicholson, who was on board the Spirit of Adventure as it was chased by pirates last month, explains why attacks have become so common.

I

t reads like advertising copy for an upmarket cruise brochure. A formal black-tie dinner on the aft deck under the stars, a soft warm breeze wafting off the Indian Ocean, the Comoros behind us, Zanzibar ahead, lobster thermidor and chilled sancerre on the table.

Then: “PAPA-PAPA”, the captain’s familiar voice over the Tannoy. He repeats the code name again followed by “All crews to emergency stations, all crews to emergency stations.” There is urgency in his voice. This is no practice drill. This is the real thing.

The 320 elderly passengers aboard the Spirit of Adventure, most of them Britons, are under attack by Somali pirates.

We file obediently to the lower lounge and the doors are locked from the inside.

There is no panic. But then most of us with silver hair have been in one kind of war or other.

That same night, Wednesday January 12, a large container ship was attacked and boarded only 15 miles away. It and its crew are now held by pirates until a substantial ransom is paid. As of this month, some 40 ships are in their hands and more than 800 crew held captive in these seas south of the Gulf of Aden.

If you want to see where they are, simply click on Google Earth. According to Chatham House, there have been more than 600 reported attacks on ships in the past four years, doing untold damage to the economics of already chronically poor states along the East African seaboard.

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When we finally ended our holiday in the Kenyan port of Mombasa, the port agent told me that ours was the only cruise ship to have berthed there in a year. Containers were piled high in this once busy harbour waiting for any cargo ship brave enough to run the gauntlet and carry them away. There is the same congestion in Dar es Salaam, Tanzania.

For the first time, the pirates have crossed the equator and threaten ports as far south as Beira in Mozambique.

The US government has recently revised rules for its seafarers and now advises its merchant ships to carry armed guards.

This entire coast could be condemned to quarantine.

According to figures released last month, piracy is now costing world trade $16 billion a year. Insurance premiums have trebled, with many insurers refusing cover to ships that go anywhere near the piracy lanes. This means ships must be re-routed, either through the Panama Canal - too narrow for the largest vessels - or around the Cape.

The multinational Task Force 150, to which some 30 navies contribute on a rota basis, has done little to stop the pirates. At any one time there could be a dozen ships on patrol, but this is a vast area, their surveillance is random and even on those few occasions when they could intercept, they do little or nothing.

The US government has recently revised rules for its seafarers and now advises its merchant ships to carry armed guards. The British Royal Navy has shown its muscle only once: in November 2008, a frigate returned fire on pirates who had fired at it, and two of the attackers were killed. But a Ministry of Defence directive since has forbidden RN captains to confront or arrest pirates “for fear of breaching their human rights”.

Some are not so meek. A Malaysian Navy patrol ship opened fire on pirates that had boarded the MV Bunga Laurei off the Comoros. Commandos fired more than 600 rounds before the pirates surrendered.

Perhaps Kenya’s navy has the answer.

Its patrol craft covertly operate a shootto-kill, take-no-prisoners policy. The Tanzanians almost certainly do the same. The safest ships of all are flying the Russian flag: armed guards aboard them simply blow pirate boats out of the water and leave any survivors to drown. Attacks on Russian vessels have abruptly ceased.

But without such military support, what are merchant ships supposed to do if they are attacked? Captains are

Pirates

forbidden from carrying guns; and who could expect the crew, being paid $3 an hour, to risk their lives? One popular measure is to run razor wire around the stern. Caging in access to lower-deck crew’s quarters is another. Then there are high-pressure water hoses. But the most effective measure involves trailing lengths of heavy-gauge steel cables from the stern. When a pirate craft rides over them its propellers are ripped off. Many container ships are now trawling wire mesh behind them the size of a tennis court. Ingenious and cheap.

Hundreds of pirates have been arrested and hundreds released without charge.

Even those few who are convicted get less than the maximum sentence. In the Netherlands a year ago a Somali, having served his prison sentence, was granted asylum because Somalia was considered “too dangerous for him to return to”.

It has even been reported that one of the pirates who held a British couple, Paul and Rachel Chandler, for 388 days has a family in England and intends joining them in the UK as an asylum-seeker.

About 700 suspected pirates are being

held in 12 countries. Who are they? And how many more are currently active?

Surprisingly little has been written about them.

They buy their weapons, including the most up-to-date automatics and rocketgrenade launchers, from the Yemenis.

Their small attacking craft operate from a mother ship, either a large captured fishing vessel or coastal freighter, and they home in on their targets using the most sophisticated GPS systems.

They are known to be supported by Somalis living in Europe, including Britain, and in Canada, which has the world’s largest émigré Somali population.

Reports of their attacks, published in those countries’ newspapers, are sent to the pirates via email, along with advice and information.

The coastal town of Harardhere in Mudug province, 300 miles from the Somali capital, Mogadishu, is the pirates’ central base. It has become a boom town, where pirates drive expensive 4WDs and strut the filthy streets in designer clothes.

There is also a stock exchange where

the proceeds of piracy are traded daily with foreign-based Somali investors staking their money on future ransom payments. Lebanon is where most of the ransom money is laundered.

One drowned pirate, washed ashore near Harardhere, had $150,000 packed into his money belt. Such is the scale and thoroughness of their operation that the pirates have even bought currencycounting machines in Dubai, to check for forgeries.

My mini drama aboard the Spirit of Adventure last month ended without mishap. Our captain, who had seen service as a gunnery officer, cleverly outwitted our attackers.

Within the hour we were back at our dinner tables.Those who had ordered rare steaks probably found them well done.

That was the limit of our discomfort and we were thankful. But there is bound to be a next time somewhere in this ocean.

And next time it may not end as it ended for us. GFI

Michael Nicholson is the former chief foreign correspondent for ITN

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GCC

Gulf Recruitment Companies Exposed!

How to Avoid Bad Practice Examples Mr Munir Mamujee - M2R

T

he GCC has been a breeding ground for recruitment firms to set up business however some are set up with disregard for service, ethics or professionalism. With a transient population, and an urgent need for staff at all levels, some recruitment companies forgo basic principles in search of client business and quick hits.

There is often an ideology that recruiters can offer a diluted and poor service to organisations in the GCC and some are willing to accept this.

Below are the common bad practices that have been mentioned to me and also some advice on how to avoid them.

Now before you all jump up and down, I am sure there are some professional and ethical recruitment firms in the GCC but the examples below are from actual companies, not heresay!

• Beware of recruiters who tell you that their candidate database is unique to them.

No company can prevent job seekers from applying to more than one recruitment firm but this is a tactic that is used to persuade you to use their services. A recruiter cannot bind an applicant so ask them to prove it.

• Recruitment firms can think it

is perfectly fine to headhunt from their clients.

This is common in the Gulf and bad

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Gulf Insider September 2011

practice. If you are looking to engage a new supplier, make 100% certain that this is not one of their methods and most recruiters will not hide this fact.

Beware of recruiters who head hunt their own hires once they are out of rebate so creating another vacancy in your company which they will then hope to fill, again. This is more difficult to police but if your new employee leaves in week 13 and the recruiter TOB is a 12 week rebate, be suspicious.

• Recruiters who send candidate’s

details out without their express permission.

This is done to steal a march in a very competitive market however and is considered unprofessional.

When you receive bulk CVs from a recruiter, it is pretty much guaranteed that these applicants have no idea their details are with you. Candidates may remain unaware that the details have been sent to certain places leading to confidentiality issues.

• Recruiters who will do anything to get candidates to interview.

It has been heard that a certain candidate attended an interview, only to discover that the CV originally sent offered no resemblance to their actual work history.

Some recruiters may do this to get

the candidate through the door hoping that once they are interviewed they will be offered a job regardless. Also, a vast majority of recruiters are targeted on arranging interviews so that a company will get to see 5 applicants when in reality, only 1 is suitable. To combat this problem and to prevent time wasting, do a telephone interview.

The best firms and the only firms you should deal with will offer a consultative approach, be completely transparent and be in constant contact. A good recruiter will show a genuine interest in your business, take time to meet you and build that long lasting relationship.

However, this can only work if you also work transparently, provide feedback and information when needed and treat the recruiter with respect. This is a two way process after all.

There are good ones out there, when you find one, do not let go! GFI

Munir Mamujee is Managing Director of UK multi award winning recruitment firm m2r Ltd and is a frequent visitor to the GCC. He will be in Bahrain and Saudi Arabia between September 17-28, 2011 and can be called on +971 3618 8782 or email munir@m2rglobal.com for more information.

essential rules

Don’t be a Maverick

By AJ

Y

ou can choose to prove you are right or you can choose to win, but usually not both at the same time. Everyday you find yourself in environments controlled by others.

Eventually, if you keep fighting any system controlled by someone else, you will lose count on it. You’re wasting time and energy when you fight the system.

It may be a natural tendency to want to buck the system, and you may succeed, but only in the short term. In the long term you will lose.

Much of your life has been and will continue to be spent playing in someone else’s “ballpark”, operating under conditions that often produce frustration and stress. To achieve your dreams and goals, you must learn to work and operate effectively under those conditions. When you work for someone else and want to succeed in your job and experience the satisfaction of raises and advancement, your only possible strategy is to play by the company’s or the boss’s rules. Whether your way is right or better is irrelevant. Your objective is to win. And if to you winning is defined as getting promotions, raises, developing credibility, and gaining the confidence of the “bigger shots”, you will have to follow rules you didn’t make. You can choose to prove you are right or you can choose to win, but usually not both at the same time.

I was once employed by a billiondollar-ayear Saudi company and I always thought I knew better than top management.

Today, as an employer of a very large workforce, I know that everyone who has ever worked for someone else has had the same thoughts, and often they are correct. I figured if they made me

president the next day that was the smartest move the company could make.

I’d straighten everything out for them within the year. My biggest problem came from the fact that I let people know how I felt. In the corporate world, that does not necessary endear you to the higher-ups.

I became known as a maverick. I was able to keep my job because I was good at it, but I was passed over for promotions and other perks that normally come with the package typical of what happens when you made up your own rules. I believed that they couldn’t afford to fire

I was once employed by a billiondollar-ayear Saudi company and I always thought I knew better than top management. me. And they didn’t. So I got to be right I could do it my way but I was losing and I couldn’t figure out why. I knew I had the talent and at that age I thought talent was all that was supposed to matter.

That, however, is not the way life works.

I knew then what the general corporate attitude towards me was, loud and clear.

I had become necessary nuisance, not one of the gang. I was proving I could bend the rules, but in the process that attitude was costing me the things I wanted most. If I wanted to win the game, I had to play by their rules, like it or not. It became painfully clear that it was

not within my power to change the rules.

My only alternatives were to accept the situation the way it was or leave the company.

I made the choice to accept my job and the rules as they were, instead of how I wanted them to be. I said to myself, Okay, I get paid 25 per cent of my salary for what I know and do, and the balance 75 per cent for putting up with all the nonsense. Once I adopted that attitude, accepting the fact that the company was going to run the way it wanted to run whether I knew better or not, my association with the company began to improve, and over the next couple of years my fortunes also improved.

I doubled my salary in less than four years. After almost losing my job two years earlier, I worked my way up from the ground floor to the bottom rungs of the top-floor executive management in the division by the time I was thirty. Learn this lesson well if you value winning as much as I do: Become a team player or get off the team. However, you can later make a choice to change ballparks.

I finally decided I didn’t want to play the corporate game anymore. I wanted to start my own company and begin to run things my own way. In other words, I built my own ballpark and hired my own players, who now play by my rules.

Accept or change, those are the only two winning strategies. Period. And as you incorporate this strategy into your daily activities, you will findyour life changing in simple but important ways. GFI

AJ’ is a very successful self-made businessman living in Bahrain. He wrote this article for Gulf Insider free of charge.

Gulf Insider September 2011

45

BOOK REVIEW

WHAT IS THE ENDGAME FOR THIS AUTUMN IN FINANCIAL MARKETS?

H

aving just finished reading through the excellent ‘Endgame: The end of the debt supercycle and how it changes everything’

by John Mauldin and Jonathan Tepper, it is interesting to immediately apply its conclusions to the outlook for this autumn.

If you wanted to sum up the outlook for this autumn it has to be brinkmanship and crisis management. No political leader comes close to understanding what needs to be done, or perhaps they simply are too bogged down in daily crises to read Maudlin’s book.

He essentially concludes that a 60year build up of debt imploded in the global financial crisis three years ago and has only been increased since then by government actions. For some nations there is a way out without another much bigger crisis, for others the debt levels are just too big.

The problem is that you cannot judge the exact timing of when it is impossible

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Gulf Insider September 2011

to kick this can down the road any longer. All you can do in assessing that can is examine the relative size of the problem in different countries and come to a conclusion about their relative vulnerability.

Europe is the place to watch for the next stage in the crisis, with the US rather powerless on the sidelines.

On this score Maudlin is surprisingly optimistic about the US so long as it gets to grips with tackling the problem soon.

He offers less comfort for Japan, ‘a bug in search of a windshield’, less surprisingly Greece and parts of Eastern Europe, and the most indebted of all is the United

Kingdom. Even Australia has a house price inflation time-bomb about to undo its two decades without a recession.

He thinks Europe is the place to watch for the next stage in the crisis, with the US rather powerless on the sidelines.

The bond market showdown with the PIIGS of southern Europe plus Ireland is the obvious denouement. But Mauldin reminds us of the situation in Eastern Europe where Austria is painfully exposed to another potential debt implosion.

You get the sense reading this book that we are tip-toeing through a minefield of potential debt implosions, some with the capacity to undermine the entire global financial system. Unfortunately that is the nature of the beast. You can delicately sidestep these issues for years and then quite suddenly they blow up in your face.

That makes it hard to predict the endgame for this autumn but it ought to make any investor very cautious. GFI

dubai

THE HIGH LIFE At.mosphere, recently opened in the Burj Khalifa, is officially the highest restaurant in the world.

It’s a 442-metre lift ride to Level 122 where you can enjoy good company, dinner and drinks alongside breathtaking views.

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Cars

World Class Luxury The new BMW M5 will be arriving in showrooms this December.

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he fifth generation of the world’s most successful high-performance saloon, the BMW M5 arrives in the Middle East this December. The new model combines compelling track performance with the comprehensive practicality of a luxurious business saloon and is an exceptionally dynamic high-performance sports car.

The newly developed four-door combines a high-performance and highrevving 4.4-litre V8 engine with an M Twin Power Turbo package. With twinturbo technology, direct petrol injection and fully variable valve control, the V8 engine produces 560 hp from 60007000rpm and a maximum of 680 Nm of torque from 1500rpm.

The new BMW M5 is also capable of accelerating to 100 km/h in 4.4 seconds, reaching a top speed of 250 km/h, which can be raised to 305 km/h with the M Driver’s Package. Thanks to use of extensive Efficient Dynamics technology,

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including Auto Start-Stop and Brake Energy Regeneration, fuel consumption is cut by more than 30 per cent when compared to the previous model.

The new BMW M5 has outstandingly agile handling and provides a fully variable

The new BMW M5 has outstandingly agile handling and provides a fully variable distribution of power between the rear wheels. distribution of power between the rear wheels.

Exterior styling cues of the new model feature large air intakes in the front bumper to feed the engine and

cool the brakes, aerodynamically optimised rear bumper with a diffuser and unique double-spoke 19-inch M light-alloy wheels.

A luxurious ambience exists within the sports car cockpit with sports seats upholstered in Merino leather and individual roof lining in Anthracite found in the cabin.

BMW Group Middle East Managing Director Joerg Breuer said: “The number of customers who choose to purchase a BMW M model still continues to grow.

However, driving a car boasting the M logo remains an exclusive experience.

The new model is a very different car from its predecessor in terms of design, comfort, technology and engineering, so we are confident that it’s going to be well received.” GFI

For more information, visit the Euro Motors showroom in Sitra or Tel. +973 1775 0750

Cars

Tradition Meets Modernity The all new Porsche 911 Carrera speeds into the limelight at the 2011 IAA Frankfurt Motor Show.

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he completely redesigned generation of the sports car icon features a flat stretched silhouette, yet from the very first glance it remains unmistakably a 911. True to the 911 tradition, the distinctive Porsche design language with its tendons and muscles, exudes power and elegance.

From a front perspective, attention is drawn to the wide-arched wings and the remodelled exterior mirrors are accommodated on the upper edge of the door. Not only is this aerodynamically advantageous, it also emphasises the new design line and visual impression of width.

The all-new, lightweight body is an intelligent aluminium-steel construction, responsible for a significant proportion of the weight reduction.

To complement the modern exterior design, the Porsche designers have created a new interior. The driver is now more closely integrated with the cockpit and like the exterior design, classic Porsche elements can also be found in the interior.

Setting the standard in its class, the new 911 Carrera and Carrera S raise the performance and efficiency bar yet another notch. All versions get by with significantly less than ten litres of fuel per 100 kilometres. Fuel consumption and emissions are up to 16 per cent

lower compared to preceding models.

The new electro-mechanical power steering offers not only Porsche’s typical precision and response but also helps to increase efficiency and reduces the general fuel consumption.

The 911 Carrera with the new 350 hp 3.4-litre boxer engine and optional PDK consumes a mere 8.2 litres per 100 kilometres. With an emission level of 194 g/km CO2, it is the first Porsche sports

Setting the standard in its class, the new 911 Carrera and Carrera S raise the performance and efficiency bar yet another notch.t car to make it below the 200 g/km mark.

The new Carrera S features a 3.8-litre boxer engine delivering 400 hp. Its fuel consumption when equipped with the optional PDK is reduced by 14 per cent (1.5 l/100 km) to 8.7 l/100 km, despite offering 15 hp more horse power.

Performance improvements have been implemented for both models, the Carrera S with PDK manages to accelerate from

nought to 100 km/h in 4.3 seconds.

Pressing the Sport Plus button of the optional Sport Chrono package, cuts that to 4.1 seconds. The Carrera with PDK needs only 4.6 seconds (Sport Plus: 4.4 seconds) to sprint from a standing start to 100 km/h.

Depending on the model, there are other standard or optional active control systems available that further enhance the vehicle’s driving dynamics, including the optional Porsche Dynamic Chassis Control (PDCC) active roll stabilisation system which is available on the 911 Carrera S for the first time. The system reduces lateral inclination when cornering by ensuring that tyres are in an optimal position relative to the road surface and thus able to transmit higher lateral forces.

As a result, maximum cornering speeds are increased; even faster lap times on racing circuits are possible.

The 911 Carrera and 911 Carrera S can be ordered as of now starting from BD34,000 for the 911 Carrera and BD40,600 for the 911 Carrera S (GCC).

First deliveries can be expected in the first quarter of 2012. GFI

For more details, visit the Porche Bahrain Showroom in Sitra or Tel. +973 1745 9911; or visit www.behbehani.com.bh

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Last word Personal observation and comment - This month by Layla Crocker

Desert Sunset Hot and Cold

The heat has never bothered me too much out here and I would rather be too hot than cold any day. Yes it is desperately hot and humid outside but is there really any need to have so many indoor public areas in subzero temperatures? Stepping into the shopping malls is like you have just arrived in Antarctica. I find myself packing a thick winter jacket just to brave a simple shopping trip. Turn the metre up people!

Timing Issues

I have always known how beautiful the sunsets are on the island but have never taken the time to sit down and really appreciate watching them in their full glory. Heading to Bahrain Fort is spectacular but for a real experience I would recommend heading into the

desert near the highest point in Bahrain, Jabal al Dukham. The sun turning a purple colour then completely disappearing is mesmerising and provides the perfect photo opportunity for all snap happy people.

Foodie

Indicators

As a self-confessed food lover it is fair to say I have tried almost every restaurant worth visiting on the island and continue to be impressed with the high standards here. The service is nearly always good and staff are polite and welcoming. There is such a huge choice that you can never get bored and I could happily eat out every night of the week if I felt really lazy. When comparing the prices of some of the top restaurants to similar places in London who charge ridiculous amounts, in my opinion you are getting a great deal. My mission is to visit every restaurant on the island starting from now …

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There is a question I would like to ask drivers here in Bahrain, do you know that in every car there are things called ‘indicators’? No, thought not. I must admit I am not the world’s greatest driver but I am proud to say I am a religious indicator with the philosophy that if someone indicates I will happily welcome them into my lane and expect the same in return (although this rarely happens!) And after my recent (minor) crash, which was not my fault may I add, don’t even get me started on checking blind spots …

While I love the relaxed nature of living in Bahrain for the past ten months compared to the stressful hustle and bustle of some UK cities, I can’t help but notice that most of the time things can be a bit too relaxed out here. I am mainly referring to people constantly running late for pretty much any event on the island which is slowly driving me crazy. At a recent conference it clearly stated the start time as 10am and me, being my punctual self turned up at 9.45am. As it turns out, I needn’t have bothered as two HOURS later I was still waiting for the event to start because of late comers. I have always been time conscious due to my obsessed parents who drummed it into me from a young age that it was rude to be late. People need to stop selfishly running on their own time agenda turning up whenever it suits them or better yet, buy a watch.

Choose your network, keep your number Your phone number is important. All your loved ones, friends and colleagues know you by it. Previously, when you changed networks you couldn’t take your number with you. But things have changed.

Now you can choose whichever network suits your lifestyle and still keep your number. For information on how to port your number simply visit www.ilovemynumber.bh and you and your number can stay together forever.