Gulf Insider Dec 2012 by Arabian Magazines

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December 2012 more inside...

Cover Story

Contents 10 MENA

Mena Wealth Insights

12 Feature

Salaries in MENA

Technology

MENA Needs Better Integration of ICT

MANAMA

32. Real Estate

Dubai Market View 2012

Telecom

VIVA Bahrain

Advertorial

Bahrain National Life Insurance

Business

Key Issues in the Islamic Insurance Market

36. Real Estate

Abu Dhabi Market Review

42. Cars

All New Range Rover

46. Art

Painting from Within

48. Tech Picks

Innovative Tablets & Smart Phones

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“There are only two mistakes one can make along the road to truth; not going all the way, and not starting.” - Buddha

Publishers Nicholas & Rebecca Cooksey Editor in Chief Nicholas Cooksey Editor Abeer Saeed Parkar Layout Designs Dhanraj S

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Companies in Saudi Arabia will now be fined for employing more foreign workers than locals under tough new labour laws.

Business Development Manager Sueallen Menezes

Saudi Arabia’s labour ministry brought the controversial policy into force this November and firms having a majority of foreigners in their workforce must now pay a fine of 2,400 riyals a year for each excess foreigner. While foreigners make up about one third of the total Saudi population, the figure is much higher within the working population. Foreign workers are believed to make up nine out of 10 of the private sector workforce, highlighting the huge dependence on expats. The fines won’t apply to other GCC nationals. This is the latest effort by the Saudis to restrict foreign labour and is a worry for expats living in the region, especially if other GCC members follow suit. Last year, the Saudi government introduced a quota system for private firms forcing them to employ a minimum number of Saudi employees. Those who fail to meet the quotas face tough restrictions on applying for future foreign worker visas. The labour ministry claims it has created almost 400,000 jobs for Saudi workers through the launch of this system although it has been criticised by companies for causing rising wage bills. One British expat living in Riyadh said: “The tide is definitely turning against foreign workers”.

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Bahrain Automotive Review Picking up speed for the remainder of 2012 Sponsored by Bahrain BD2

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Mixed Messages in Bahraini Real Estate

It was a relief to read about Bahrain’s almost stabilizing real estate sector. I’m just glad the market’s doing well and not worse, even though it’s a shame it didn’t improve much. The USD10 billion GCC fund allocated to Bahrain following last year’s social unrest is a good move by the government. However, there are still more than 50,000 households on the social housing waiting list and this signals a strategic error somewhere in the system. Housing funds are available but delegating and starting construction seems to be the deterrent issue.

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As highlighted in the interview with Dome Café’s director, Shaikh Hamad Bin Khalifa Al Khalifa, it’s important for business owners to be involved in their organizations. It’s nonstrategic to set up a business and assign the foundational work to someone else. A new venture is like a helpless newborn, so don’t start if you’re not 100 per cent committed. Regarding franchises, I think Dome Café’s director said it really beautifully, “it’s ignorant to think that a food business is just plug and play.” Najaf, Riffa

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Food Business Not Plug and Play

I had a pleasant time reading about uplifting service cultures and the importance of keeping customers happy. However, I (and many highend organizations) believe that employees have rights too. It’s crucial that one keeps an eye out for his/her workers and make sure they’re at ease with the work culture and load. Otherwise an employee’s dissatisfaction may translate into poor customer service output. Incentives, recognition and awards are scary words for the giver, but it can go a long way for the receiver.

I spotted my son browsing through the automotive special last month, drooling over the loads of car reviews featured. You have a younger audience to cater to now! Jokes apart, the automotive sector is truly picking up this year and I commend all those who have helped this sector of Bahrain’s economy. This is news worth sharing globally because it signifies that customers are willing to invest in Bahrain and life has returned to normal. Sunaiha - Busaiteen

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Bahrain

Business News Alba supports Invest in Bahrain Forum

BIC Renews Business Relationship with Mindshare

Alba sponsored the Invest in Bahrain forum last month which was held at the Bahrain International Exhibition & Convention Centre. The forum was organised under the patronage of His Royal Highness the Prime Minister, Prince Khalifa bin Salman Al Khalifa. Invest in Bahrain forum showcased Bahrain’s attractiveness as an investor friendly economic destination and key incentives provided to investors in setting-up a base in Bahrain.

Mindshare, an agency dedicated to innovative brand development for its clients, has announced a successful pitch of media services to the Bahrain International Circuit (BIC), one of the world’s leading motorsports venues. Mindshare has been responsible for the BIC’s media operations since 2009, promoting the Formula 1 Gulf Air Bahrain Grand Prix with other motorsport activities hosted at the world-famous venue. In a pitch process involving four other agencies, BIC has once again chosen Mindshare to be their official media partner.

Gulf nations to compete in Sailing Arabia – The Tour Gulf nations will once again battle it out on the Arabian Sea for the 3rd edition of Sailing Arabia - The Tour from 10th to 25th February 2013. It is the only pan regional off shoresailing race that delivers 15 days of sailing action across four different countries and seven beautiful marinas located in Bahrain, Qatar, United Arab Emirates and Oman. The race will start in Bahrain on 10th February and will continue on to Qatar. The boats will be racing on to UAE (Abu Dhabi and RasAl Khaimah) before sailing around Oman’s peninsular to Musandam and finally reaching Muscat for the closing ceremony.

BNI Gold Sponsor of Tamkeen Business Quiz Show

Bashayer Dhaif, Manager Corporate Communications

Gulf Insider December 2012

Zahraa Taher, Managing Director of FinMark

Tamkeen and FinMark Communications have announced Bahrain National Insurance (bni) as a Gold Sponsor of the Second Annual Tamkeen Business Quiz Show. For a second year, bni has offered its support to the Quiz challenge, which aims to foster engagement between Bahrain’s business community and the public as well as to highlight the key companies and industry sectors, which make the Kingdom of Bahrain a leading financial and business hub in the region. This year’s industry quiz nights will be held on 2, 4, 5 and 6 December 2012 and the Grand Finale will be on 11th December. The industries featured by the show are: Banking, Insurance, Telecommunications & Technology and Industrials.

Business News

eGovernment Authority Wins ‘Best Public Sector Organisation of the Year’ in Middle East

Award presented to Major General Doctor Sheikh Salman bin Attiyatulla Al Khalifa

King Hamad University Hospital Receives Award King Hamad University Hospital was awarded the Healthcare Deployment of the Year at the ITP Middle East ICT Achievement Awards 2012 ceremony in Dubai recently. KHUH was awarded in recognition of its innovation and vision in the use of RFID, Asset Management and Real Time Location Systems to improve the quality and efficiency of patient care. It was recognized as the most technologically advanced hospital in the Middle East. The solution was deployed by Azimuth WLL, a locally based Systems Integrator. The award, the 2nd year running for Azimuth’s customers, is a pinnacle of achievement in the healthcare arena in the Middle East and Bahrain.

Mindshare Media Summit Provides Push Forward for Industry Mindshare, an agency dedicated to innovative brand development for its clients, recently concluded its 3rd annual Media summit at the Dubai Marina, UAE. The unique event brought together some of the brightest minds in technology and marketing, focusing on the theme, “Generation Multi-Screen”. Through a number of engaging presentations, the summit took a winding journey of discovery into the potential future of our ‘multi-screened’ world in which smartphones, tablets, laptops, desktop computers, and televisions have taken a dominant role in daily life. Over 300 attendees from a range of industries, from marketing professionals to business leaders and media, participated in the event.

In an international ceremony held recently in Chiang Mai, Thailand; FutureGov Award 2012 awarded Bahrain’s eGovernment Authority the Public Sector Organisation of the Year in the Middle East Award. The Authority celebrated as the sole Arab nation to gain such recognition for its high-quality initiatives and programs as well as remarkable efforts in the development of utilizing ICT in government work. The award honours the administrative excellence in government, education or healthcare institutions through benchmarking programs in the GCC region.

eGovernment Authority Policies and BPR Directorate Director Dr. Zakareya Ahmed Al-Khaja receiving the award.

Qatar Airways Introduces New Payment Options for Booking Qatar Airways has announced the introduction of an enhanced booking feature where customers can pay for reservations made on its website or local office. The new solution offers greater flexibility to passengers who can now create bookings online and pay for these bookings in cash at a local Qatar Airways reservations and ticketing office. Payment must be completed within 24 hours of creating the booking online. Qatar Airways does not charge any additional booking fees when bookings are made through its website and payment is made at their local office (subject to terms and conditions). Once payment for the booking is made, passengers can then check-in online and also select their preferred seat and meals. Passengers who prefer to pay with credit cards can still complete their travel arrangements online.

Gulf Insider December 2012

Business MENA

mena Wealth Insights MENA’s wealthy remain optimistic in the face of adversity as report reveals the power of persistence.

inety one per cent of Middle East high net worth individuals (HNWIs) agree that viewing failure positively is essential for an economy to grow, in comparison to 74% globally. Compared to those in Western economies, respondents from the MENA region tend to have a more positive view of setbacks,

show greater persistence and better see the benefits of overcoming adversity, according to the latest report in the Barclays Wealth Insights series. The overwhelming majority of respondents in the Middle East (91%) and Asia (80%) believe that viewing failure positively is essential for an economy to grow, whilst these figures

 91% of wealthy individuals in the Middle East believe viewing failure positively is essential for an economy to grow, according to the latest edition of Barclays Wealth Insights  74% of respondents in Saudi Arabia agree that if their business is failing, an entrepreneur should persist rather than cut their losses  73% of Qatari respondents, the highest globally, believe they have learnt a great deal from their past setbacks, and 85% feel they have bounced back quickly from them

Gulf Insider December 2012

drop to 71% and 69% in the US and Europe. In addition, respondents in Asia and Central & South America are far more positive about the opportunities presented by the recent global crisis (53% and 60%) compared to the US and Europe (44% and 42%). Launched in 12 November and based on a global survey of more than 2,000

MENA Business

HNWIs comprising entrepreneurs, business leaders and investors, the report, If at First You Don’t Succeed… Mapping Global Attitudes to Adversity, provides an in-depth study into the different ways in which individuals around the world view and respond to setbacks. The report explores how different cultures value traits such as persistence and optimism, the role of luck and how entrepreneurs view setbacks as a stepping stone to future success.

Respondents Report

More respondents in the Middle East (81%) than any other region believe that past failure in entrepreneurial endeavours increases the chance that a new business will succeed. This attitude to failure is further demonstrated when respondents were asked whether they would hire an individual who had experienced entrepreneurial failure; within the MENA region, Saudi (89%) and Qatari (86%) respondents confirmed that they would, compared to 61% of UAE respondents. Elsewhere, just 42% and 47% of respondents in the UK and Japan respectively would hire someone with a failed enterprise on their CV. This figure drops to just 25% in Monaco. The research on persistence reveals that 74% of Saudi HNWIs are of the view that entrepreneurs should persist if their business is floundering, as opposed to cutting losses. Within the MENA region, 36% of Qataris are most likely to cut their losses when the business is underperforming. However, an overwhelming 100% believe that past failure will increase chances of future success in entrepreneurial endeavours. The report reveals that respondents believe that being successful is significantly reliant on ‘skills/intelligence’ and ‘effort/hard work. On average, over a third of respondents attributed success to these factors (35% each). Chance and connections, on the other hand, are seen as much less important factors, at 16% and 15% respectively. In the MENA region, the UAE ranks highest when it comes to belief in ’skills/intelligence’ and ‘effort/hard work’, at 35% and 36% respectively. In Qatar, respondents believe that 34% of success is due to chance which is the highest of all

countries surveyed. Dr. Greg B. Davies, Head of Behavioural Finance at Barclays, warns against being too self-assured, commenting: “Strong belief in skill rather than luck could give you a degree of over-confidence in future decisions. This mindset can be hazardous to the long-term security of a business, or to an investor, as you end up taking more risks on the assumption that your success has been wholly attributed to your own good decisions.” When asked about learning from failure there are variations within the MENA region amongst respondents who have experienced failure. Respondents in Qatar 73% (the highest globally), UAE 45% and Saudi 34% cite that they have learnt a great deal from past failures. When these respondents were asked if they were able to bounce back

Within the MENA region, 36% of Qataris are most likely to cut their losses when the business is underperforming. quickly from failure the responses were similar; 85% in Qatar agreed with this statement, compared to 45% in Saudi and 37% in UAE. The report reveals a contrast in the number of people who see themselves as entrepreneurs in Western versus Eastern economies. According to the research, just 29% of respondents in the US and 30% in Europe regard themselves as entrepreneurs, compared to 47% in Asia, 50% in the Middle East and 55% in Central & South America. In addition, 56% of these entrepreneurs globally say that they learned a great deal from failure, compared with 41% of nonentrepreneurs. Rory Gilbert, Managing Director and Head of Wealth and Investment

Management, Barclays, Middle East and North Africa, said: “Traditionally, many regard Europe and North America as entrepreneurial hotbeds, but these findings support the widely held belief that we are seeing a global shift, with a fear of failure perhaps holding these ‘established’ economies back. Governments across the globe have highlighted the crucial role that entrepreneurs will play in kick-starting the global economy, so understanding their psyche, their culture of perseverance and how this differs across regions will be critical in making this opportunity become a reality.”

Global Grit

The report reveals some significant findings relating to the mindset of individuals in different regions. In the Middle East, 83% of respondents agree that anyone who works hard enough can become a successful entrepreneur. The corresponding figures from the US and Europe are just 49% and 44% respectively. The report reveals the personalities of entrepreneurs in different regions of the world, with those in the East determined to overcome setbacks and persevere. There is perhaps another element at play though, as the broader economic climate and mindset of governments, regulators and businesses impact on the ability of entrepreneurs to succeed. Paul Ormerod, an economist and author of Why Most Things Fail…And How to Avoid It, suggests that setbacks are inevitable and long-term success relies on having clear risk mitigation policies in place. He comments, “The usual approach is to try to predict potential problems and then put plans in place to stop them from happening. But you cannot avoid failure. You’ll never get round this fundamental problem, no matter how smart you are. It’s inherent to all evolving systems, which is exactly what human social and economic systems are. Therefore, we come back to the power of persistence, which the East appears to be embracing. The questions are what the West needs to do counter this potential power shift, and what the longer term implications are.” GFI

Gulf Insider December 2012

Feature Salaries in MENA

Salaries in MENA Expected to Grow 6% in 2013 Salary Increase Survey paints positive picture for MENA employees in the coming year.

on Hewitt, the global human resources business of Aon plc (NYSE: AON), have announced the results of it’s annual Middle East Salary Increase Survey 2012. The report, based on inputs from a comparator group of over 500 organizations from 26 sectors in the Middle East, suggests that there will be an average salary increase of 6.08% in 2013. Aon Hewitt has been conducting the survey on an annual basis across the globe for 36 years and launched it in the Middle East for the first time in 2009. The survey is conducted in nine countries in the region, including: Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and United Arab Emirates. Among the participating organizations, Egypt-based organizations have indicated the highest salary increase projection for 2013 at 9.5%. After being impacted by over 18 months of political turmoil, Egypt-based organizations in fact gave lower than previously projected raises during 2012 (having projected 10.4% in 2011 and then actually giving 8.4%) albeit remaining higher than those of Europe or the rest of the Middle East. In the GCC, an average salary increase of 5.4% was projected for 2013, the same as the projection made in 2011 for 2012, indicating that organizations continue to show confidence in the economic stability of the region. The report highlighted differences between the GCC countries, with Bahrain12

Gulf Insider December 2012

based organizations giving the lowest salary increase projection for in 2013 (4.4%), and Kuwait-based organizations forecasting the highest at 6.2%. Martin McGuigan, Head of Reward Consulting, Aon Hewitt Middle East said: “All macro-indicators have shown that the economic scenario continues to move in a positive direction with corporates continuing to show confidence in the 2013 economic outlook. At large, there are no further reductions in the salary increase projections for the next year which is good news for employees. We have also observed that organizations have increasingly been linking salary rewards to performance, which is a healthy trend and indicates the increasing maturity level of the market.” The report also highlights that fewer organizations in the Middle East are thinking about salary freezes. Only 1.3%

of organizations in UAE have projected a salary freeze in 2013 compared to 4.1% in 2012. The major exception to this trend is Qatar where at least 8% of organizations have projected a salary freeze in 2013 against 2.4% which froze salaries during 2012. This may be attributed to the high salary increase given to Qatari National employees in 2011, with organizations now trying to induce market competitiveness to normalize the impact. The salary increase projection for Qatar for 2013 is also stable at 5.6%, equal to the actual salary increase this year. GFI

The survey is part of Aon Hewitt’s suite of evidence-based, research-led studies including Qudurat, Best Employers Middle East (BEME), Total Compensation Measurement (TCM™) and People Risk Index (PRI®).

Country variations Country

Anticipated Salary rises in 2013

Actual Salary rises in 2012

Change

Bahrain

4.7%

4.4%

+0.3

Egypt

9.5%

8.8%

+0.7

Jordan

6.6%

6.1%

+0.5

Kuwait

5.8%

6.2%

-0.4

Lebanon

6.0%

6.4%

-0.4

Oman

5.6%

5.4%

+0.2

Qatar

5.6%

No Change

Saudi Arabia

5.8%

No Change

United Arab Emirates

5.1%

5.2%

-0.1

Feature Technology

MENA Needs

Better Integration of ICT B The Global Information Technology Report 2012: Living in a Hyperconnected World, was released by the World Economic Forum and INSEAD Business School. It published its Network Readiness Index (NRI) that ranks five GCC countries in the top 40 list globally.

Gulf Insider December 2012

ahrain, Qatar, the United Arab Emirates, Kingdom of Saudi Arabia and Oman, ranked at 27th, 28th, 30th, 34th and 40th respectively on the NRI, demonstrating that they have embraced ICT to boost their country’s competitiveness. On the other hand, countries in the Levant and North Africa still lag behind and face important challenges to fully leverage ICT. Jordan ranked (47), Tunisia (50), Egypt (79), Lebanon (95), Morocco (91), Algeria (118), and Syria (129). In general, elevation of ICT on the national competitiveness agenda coupled with a disciplined approach to national ICT plans execution and impact monitoring translate into stronger economic and social impacts. “Digitization has contributed $27bn in economic growth for the MENA region between 2007 and 2010 and generated 1.3 million jobs in the same period,” said Karim Sabbagh, Senior Partner and Global Head of Communication, Media and Technology Practice at Booz & Company. Sabbagh said, “With the right efforts and ICT capabilities

Feature Technology Feature

systems in place, it has the potential to continue doing so in the future, generating $30bn in economic growth and creating an addition one million jobs over the next three years, in a part of the world that needs them urgently.” “Despite top 30 rankings, the MENA region in general, and GCC in particular is vulnerable on the global ICT competitiveness scale,” said Milind Singh, Principal at Booz & Company. “After gaining an average of four positions between 2009 and 2010, the top four GCC countries (Bahrain, Qatar, UAE and Saudi Arabia) surrendered their competitive momentum with an average regression of two positions in 2011. Only Kuwait has grown significantly, gaining 13 positions - albeit from a low starting position of 72.” All North African countries have also declined in ranking this year, with Tunisia leading the pack with a 15 position drop. Egypt (five position drop), Morocco (eight position drop) and Algeria (one position drop) confirm the declining trend. Booz & Company explains that the decline in GCC ranks is not driven by deterioration in a particular area, but a faster progression by other countries. As a matter of fact, GCC countries have exhibited significant achievements in selected areas: Four GCC countries rank in top 10 on Importance of ICT to Government Vision - Qatar (2), Saudi Arabia (5), Bahrain (6), UAE (7), with Oman a close 11th. GCC countries also fare very well on Government procurement of advanced technology, with Qatar being the global leader and Saudi (3), UAE (5), Oman (12) and Bahrain (17), all in the top 20. GCC countries also fare well in having a supportive business and innovation environment, with Qatar (2), Saudi (7), Bahrain (11) and UAE (21) all in top 20. Still, decline in the overall ranking stresses the need for accelerated and more effective action in translating government vision into national ICT policies, putting in place required enablers, and driving effective execution and impact monitoring. The UAE, in particular, has slipped six positions and surrendered regional leadership, after steadily gaining ranks between 2007 and 2010. Most UAE indicators continue to rank between the 25th and 50th rank, with a few exceptional

ranks above and below the band. With world class telecom infrastructure, access to international talent and supportive business and operational environments, Booz & Company experts assert that the UAE is well positioned to regain its competitive position, with the enactment of the right policy initiatives, stakeholders’ engagement models, and performance enablers. UAE already ranks 5 on Government procurement of advanced technologies, 7 on importance of ICT to government vision, 14 on mobile phones penetration, and 15 on mobile cellular tariffs. At the same time, UAE ranks 55 on international internet bandwidth per user, 79 on e-Participation, 72 on mobile broadband penetration. “Digital applications offer unprecedented potential for economic, social and political development,” said Bahjat El-Darwiche, Partner at Booz & Company. “Policy-makers need to be aware of both growth and transformational opportunities, and how they can craft policies that promote ubiquitous digitization in a timely manner. They must facilitate the creation of new models enabled by digitization at a faster pace than the old models are breaking down.” Under the theme Living in a Hyperconnected World, the report explores the causes and consequences of living in an environment where the Internet is accessible and immediate; people and businesses can communicate instantly, and machines are interconnected. “Hyperconnectivity is redefining relationships between individuals, consumers and enterprises, citizens and state, and we are beginning to see fundamental transformations in all areas of the economy and society,” said Robert Greenhill, Chief Business Officer, World Economic Forum. The NRI uses a combination of data from publicly available sources and the results of the Executive Opinion Survey, a comprehensive annual survey conducted by the Forum in collaboration with partner institutes, a network of over 150 leading research institutes and business organizations. This survey of over 15,000 executives provides insight into areas critical for networked readiness. GFI

Digitization has contributed $27bn in economic growth for the MENA region between 2007 and 2010 and generated 1.3 million jobs. Booz & Company recommends five priorities for policymakers to accelerate digitization and maximize its socio-economic impact: • Elevate digitization on the national agenda: Ensure that national policy and senior government stewardship provide the platform for progress; create a plan for digitization that is tracked and monitored, with accountability residing at senior levels of government. • Evolve sector governance: Segregate regulatory and policy roles; clarify both ownership and accountability for ICT and digitization. • Adopt an ecosystem philosophy: Address the convergence of telecommunications, media, and information technology; develop a strategy that addresses all stages of the value chain in a holistic way; and consider the local ecosystem as well as export opportunities. • Enable sustainable competition: Develop a competitive ICT model that stimulates both innovation and adoption, while ensuring sector sustainability and investments. The end game is to create a capabilities system in-country that will allow each nation to advance against its own agenda and in a competitive manner - and do so sustainably. • Stimulate demand: Invest in boosting digitization usage and service adoption; ensure that public services are available through e-channels.

Gulf Insider December 2012

Bahrain

VIVA BAHRAIN MANAGING THE OPPORTUNITIES OF THE LATEST TECHNOLOGIES

Gulf Insider talks to Andrew Hanna, CCO of VIVA Bahrain, about why itâ&#x20AC;&#x2122;s essential for a business to recognise and be able to quickly act on fundamental new trends, both social and technological.

Andrew Hanna, CCO VIVA Bahrain

Gulf Insider December 2012

Telecom Bahrain

IVA Bahrain, a part of the STC (Saudi Telecom Company) Group, launched commercial services just over two years ago in the Kingdom. Recently, VIVA (under the STC umbrella) represented Bahrain at GITEX Technology Week 2012 in Dubai for the first time and used the opportunity to showcase its stateof-the-art technology. At the event,Gulf Insider met Andrew Hanna, the CCO of VIVA Bahrain who spoke about VIVA Bahrain’s product innovations and how the company is adapting to fast changing consumer behaviour. “We have showcased a number of firsts in innovation and value,” Andrew began, “VIVA Bahrain introduced credit bundles, post-paid product formats, smartphone and tablet plans, unlimited packages and on-net calling.”

VIVA Bahrain has also been able to positively impact the telecommunications market by introducing the first HSPA+ network, the fastest broadband service in the Kingdom at 42Mbps, and the launch of high-tech devices such as the Windows Phone 7 and the iPhone 4. With regards to VIVA’s first experience in GITEX, he mentioned that it was fascinating to look around and see various products

A company can become irrelevant in the technological industry if it’s unable to grasp on innovation and act quickly upon it. and services on offer at the exhibition. Within two years of its entry into Bahrain’s telecommunications sector, VIVA Bahrain has achieved a new best-in-class benchmark as the third market entrant by attaining solid financial and commercial results using a simple, innovative and tailored approach, which has been possible by its cutting edge mobile and data network. Andrew explained that his target is to spot opportunities and act quickly. “Currently we’re noticing a trend towards social media and consumer behaviour changes in the market,” he said. He went on to explain how difficult it is to predict future customer behaviour and gave a couple of examples of past unexpected behavioral changes. “SMS was nothing more than an add-on feature to mobile phones when introduced. The designers and engineers had no idea how important it would become to users,” adding; “take a look at social media. Five years ago, it was seen by many as just a trend, few predicted just how important social media would become to so many in so short a timeframe.” Andrew noted however that though it is essential to embrace social media, it can often be a double-edged sword for businesses. “Social media needs to be managed very wisely. It’s great to be engaged in real time with customers and get feedback,” he said, “But on the flip side, social media can be used negatively too.” He then went on to speak about the danger of companies becoming irrelevant in their industries, whilst concluding that it’s crucial to grasp on innovation and quickly act upon its application to your products - a target VIVA Bahrain aims to develop and provide. GFI

Gulf Insider December 2012

Bahrain Advertorial

EXCLUSIVE AL WAJAHA ACCOUNT BY BBK REDEFINES PERSONALISED SERVICE A unique banking service that offers unparalleled financial, travel and lifestyle privileges.

Mr A Karim Bucheery BBK’s Chief Executive

BK, Bahrain’s pioneer in retail and commercial banking, recently launched the exclusive Al Wajaha Account. It is specifically designed for connoisseurs of excellence and redefines personalised service and luxurious living. Account holders can benefit from Al Wajaha which comes with the Visa Infinite debit card. Al Wajaha account holders also experience first class priority treatment, personalised benefits whenever they visit any BBK branches and Financial Malls. They can also gain recognition of their exclusive status around the world

Gulf Insider December 2012

through their Al Wajaha Visa Infinite debit card and are entitled to privileges such as the Priority Pass, which allows immediate access to over 600 airport business lounges around the world, concierge services and special dining and lifestyle services from Visa. BBK’s Chief Executive, Mr A Karim Bucheery said that “We cherish the relationship with our customers and always pay very close attention to our customers’ needs. Our new Al Wajaha banking service has been designed to go above and beyond those needs and offers an unrivalled package of exclusive features and benefits.” Financial benefits include special interest rates on loans, preferential rates on fixed deposits, an overdraft facility, higher Point of Sale spending limit and higher ATM withdrawal limits, concessions on safe deposit lockers, and reduced fees on a number of bank services. Account holders are also privileged to receive expert financial advice and the personal attention of their very own relationship manager, as well as a dedicated banking section in an elegantly designed Majlis Al Wajaha in BBK’s main branch, direct access to Branch Managers and specially designated Al Wajaha parking areas at all BBK branches

and financial malls. The program also incorporates complimentary, comprehensive multitrip travel insurance for everyone in the family when a trip is paid for with the Al Wajaha Visa Infinite debit card. This allows savings on travel insurance and ensures complete security and coverage. Al Wajaha Account holders also have access to worldwide, 24/7 assistance from BBK as well as from the Visa Global Emergency Services’ and can receive help with travel arrangements, complimentary medical assistance, obtaining legal advice and professional childcare referrals as well as obtaining emergency cash that can be delivered directly to their hotel. Accepted worldwide, the Visa Infinite debit card provides cardholders with exclusive out-of-hours store access, extended warranties and purchase protection. In addition, Visa can facilitate urgent payments by communicating directly with the retailer, service provider or hotel to authorise any necessary payment; providing cardholders with convenient, stress-free shopping experiences. GFI

For more information about Al Wajaha Call Tel: +973 1720 7770 or visit www.bbkonline.com

Bahrain Advertorial

BAHRAIN NATIONAL LIFE,

PROVIDING LIFE AND HEALTHCARE INSURANCE look at bnl’s new website and variety of services IN BAHRAIN Aavailable for Corporates and Individuals.

ahrain National Life (bnl) is a subsidiary of Bahrain National Holding (BNH) and the only local company that offers a range of life and healthcare insurance. The company was established more than ten years ago, and their first website was launched last month as part of their service to clients. Kulvy Gordon, Customer Services & Quality Manager, bnl told us, “We are very excited about our first website launch and creating a long-term journey with our clients, following them through their life paths,” adding, “bnl offers services from start to finish, ranging from child education, retirement plans, savings and healthcare insurance.” The website, www.bnl4life.com, features information about Corporate and Individual Products, a customer care page detailing ways to place complaints, make suggestions and reporting fraud, plus a glossary of insurance 20

Gulf Insider December 2012

terms. The glossary and other terms or products mentioned in the website are clearly explained in a generic and comprehensible manner, making them easy to understand for people who are not familiar with insurance or financial “jargon” concepts. bnl’s Corporate Schemes include employee benefits for life, healthcare and savings. The Corporate Plans range from Group Credit Life Insurance, Group Life Assurance, Group Savings Scheme, Key Man Assurance, Essential Healthcare Plan, International Student Plan, Premier Healthcare Plan, Ta’asheera Healthcare Plan and Tele-Medicine Plan whereby clients can seek second medical opinions. The Individual Schemes also include Decreasing and Level Term Assurance, Future Education Plan, Future Security Plan and Unit Linked Insurance Plans. Robert Grey, bnl General Manager, said “We are very pleased to have

launched our own website and are sure our clients will find it easy to use, helpful and informative”. “We also have a virtual feature known as the bnl Café where we provide general health tips and educate readers on ways to prevent diseases,” Kulvy said, “We want to mould our services to be more than just an insurance company, connecting with our clients on a more friendly level.” Bahrain National Life Assurance Company B.S.C. (c) is a 75 per cent owned subsidiary of Bahrain National Holding and is the only local company specializing exclusively in providing a wide range of life and healthcare insurance products and services for businesses and individuals. GFI For more information contact Tel: + 973 1758 7333 www.bnl4life.com

Bahrain National Life

launches

its new website www.bnl4life.com

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www.bnl4life.com

Feature Business

The takaful market, especially in the Middle East, is being held back from achieving its true potential by a number of factors, according to the participants of a Roundtable.

Key Issues in the Islamic Insurance Market

ccording to a new report, Takaful, the Shariah-compliant form of insurance, holds tremendous potential but continues to be challenged by multiple factors such as a limited product range, noncompetitive pricing and a supportive regulatory framework, especially in the Middle East. The report, Opportunities and Challenges in the Middle East Takaful Industry, summarizes & examines panelist commentaries made during the 2012 Takaful Roundtable discussion. Organized by Zawya in partnership with Emirates NBD and FWU Group, the roundtable provided an opportunity for industry leaders and decision makers to convene and participate in an open dialogue on the Takaful industry. “The Takaful industry has come a long way, paving the way for a distinctive bancassurance offering within the GCC,” says Shekhar Krishnamurthy, head of retail assets and liabilities, consumer banking and wealth management 22

Gulf Insider December 2012

at Emirates NBD. “Having said that, the success of the Takaful industry is dependent on the active participation of the providers in creating general awareness of the product value. It also requires engagement with distributors to deliver on innovative products matching client demand and market requirements.” In spite of a high growth rate in demand for such products in the UAE, for instance, takaful remains a small segment of the insurance pie. In 2011, the overall UAE insurance market grew by 10%, whereas the takaful segment is expected to have grown by 30%. Takaful remains a very small segment of the market, at about 7.5%. Commenting on the Takaful roundtable and the report’s findings, Mr. Sohail Jaffer, Deputy CEO, FWU Global Takaful Solutions said: “The recent Zawya roundtable was a valuable forum to exchange industry views and perspectives on the fast growing takaful business in MENA, South East Asia and

other OECD growth markets. Key drivers for takaful include full transparency of product terms and conditions, surplus sharing and a sustainable customer value proposition. Increasingly major banks in the region have widened individual customer choice by offering suitable long term takaful savings plans and financial protection.” Other issues discussed at the roundtable include the importance of training takaful teams; finding talented resources; implementing effective distribution solutions; public awareness of takaful and its benefits; and the availability of Shariah-compliant investment options for takaful providers. The role played by government regulation was also discussed. Comparisons were made with the support given to the takaful industry by regulators in Malaysia. GFI

The full report, entitled Opportunities and challenges in the Middle East takaful industry, is now available on Zawya.com

Middle East Business

Middle Eastern Business Confidence Rises in Spite of Volatility

sharp decline in business confidence in many rapid growing economies is raising a warning flag that global business may face continued volatility for some months to come. In the Middle East, confidence levels have increased, climbing 8 points in the Regus Business Confidence Index (from 125 to 133) since April 2012. Business confidence in some of the world’s leading growth economies has dropped significantly over the last six months. Despite the fall, levels of business confidence in rapidly growing economies still remains well ahead of levels in mature economies – yet this setback should act as a warning flag for businesses across the world to stay nimble and expect further volatility before a general global upturn, finds the latest Regus Business Confidence Index (BCI) based on the views of more than 24,000 senior business people from 92 countries. Confidence among small businesses in particular has flatlined in both mature and developing economies, and given the important role of small and mediumsized enterprises as an engine of growth and provider of jobs, this finding is of particular concern. Access to affordable credit and cash-flow management were among their biggest concerns, highlighting the need for flexible, payas-you go business services allowing businesses to remain flexible and agile. “It’s clear that there’s been a stagnation in business confidence, accompanied by significant falls in some rapidly developing economies since our last BCI

Confidence among small businesses in particular has flatlined in both mature and developing economies, and given the important role of small and medium-sized enterprises. report in April,” said Joanne Bushell, VP for Middle East and Africa, Regus. “This suggests that slowing trade with Europe and Western economies, combined with a host of national factors, is taking its toll. If there is some good news it’s that, globally, the proportion of companies reporting revenue growth is stable while profits increased slightly.” Joanne said: “We were particularly struck by the lack of any improvement amongst entrepreneurs and small businesses. In order to improve their cash situation, respondents identified affordable and flexible business services – especially for overheads such as workspace, administrative support and sales/marketing. 45% of respondents, for instance, reported that one of the major burdens during the downturn has been inflexible property leases. Flexible

services allow businesses to be more agile and free-up cash for investment without relying on credit at a time when it is so difficult to secure.” GFI

Key Findings and Statistics  Global confidence levels have

shown little change compared to six months ago; down 2 percentage points to 111 since April 2012.  The proportion of Middle Eastern companies reporting revenue increases rose marginally from 49% in April 2012 to 52%; however, profits fell from 45% to 40%;  More than three-quarters (78%) of Middle Eastern respondents reported that they were satisfied with their government’s support strategies for business;  The following issues are major challenges to small businesses and start-ups:  administrative tasks (35%)  finding reliable suppliers (35%)  sales (33%)  cash-flow (26%) Respondents also highlighted key measures for government to introduce that would substantially help small businesses and start-ups. These are:  low interest loans (48%)  tax exemptions (47%)  information services (47%)

Gulf Insider December 2012

Dubai - UAE

The Titanic is a restaurant, bar and lounge that offers European contemporary cuisine and is headed by Michellin Star and British celebrity chef Marco Pierre White. The restaurant is designed in the style

RECOMENDED HOTELS

the new MELIA DUBAI

ast month we discovered the new Melia Dubai, part of Spain’s Melia chain of luxury hotels and their first property to be introduced in the Gulf. The hotel has a boutique, modern style look and features an array of facilities and services for its guests.

It’s situated in an unusual and ever so slightly out of the way location however, but it’s worth making the effort to experience this funky little hotel. Melia Dubai’s most appealing features are the roof top pool deck and its rather special in house bar and restaurant.

of the Titanic, without the sinking feeling of course. Melia Dubai’s exclusive “The Level” Floor located on the 7th building floor offers more luxury and provides panoramic views over the city’s skyline. GFI

For more information and bookings call Tel: + 971 4386 8111

60% of users consider the loss of financial data

the most dangerous threat.

here are many computer threats that can cause headaches for users. Among them, the most damaging are those which threaten the safety of our valuable information or, even worse, its confidentiality. And of all the personal data we store online, financial information is what gives us greatest cause for concern: 60% of users surveyed by Harris Interactive in 2012 said the exploitation of financial info was their biggest fear. Information about passwords for online services comes a close second – 58% of users are concerned about the loss or

Gulf Insider December 2012

theft of this data by cybercriminals. Next, in descending order, come personal email and documents, address book contacts and different kinds of multimedia files. Despite their obvious concern about data safety, however, a considerable number of users store information on poorly protected mobile devices. In particular, 15% of respondents use their tablet to make credit card purchases online, work with electronic payment systems or to perform other financial operations; 12% perform the same activities using their mobile phone. About one third of all users

(31%) entrust their personal information to their home computer or laptop. What do users do to protect sensitive data? According to the results of the Harris Interactive survey, just under half of respondents (46%) choose to back up all their devices. 30% of users resort to encrypting valuable information, while another 32% protect documents with a password. These measures are obviously not sufficient in themselves, but coupled with high-quality antivirus software they can ensure a decent level of protection. GFI

Feature MENA

Results of the Q3 2012 MENA asset management survey

he latest quarterly survey of the QFC Authority/FTSE Global Markets MENA Asset Management Survey, shows that access to liquidity is the prime concern of the region’s investors. The survey, sponsored by the Qatar Financial Centre Authority (QFCA), describes the changing perception of political/economic risk within the region and outlines current thinking about the necessity of deepening the region’s investment infrastructure. Some 393 firms were approached for information of which 84 responded, either by phone, fax or email. From these returns we have extrapolated the analysis of the responses of asset managers, with an acknowledged $74,883 million worth of assets under management (AUM). Although quarter on quarter trends in asset allocation can obscure longer term structural changes in geographic preferences of investment firms, because the MENA region has been subject to socio-political disruption through 2011-2012, we expected more dynamism among investors in terms of geographic asset allocation. While there are clear national differences in the way that investors approach investment to the MENA region, there is a clear disposition among survey respondents to invest locally. Over one third of respondents have all their assets invested in the Middle East and North Africa. Only a handful claimed to have none invested in MENA. The survey finds too that there is also more dynamism in asset allocation among those funds with approximately 80% of their portfolio in the domestic market. They exhibit a marked willingness to shift capital when necessary. In this regard, the survey is an important bellwether

Gulf Insider December 2012

of the shifts in investor thinking about political/market risk. Investors remain positive about Saudi Arabia. The survey also finds that investors have noted the improving fortunes of the UAE states, and have now brought the emirates on par with Qatar in terms of overall investor sentiment (see the chart below). Qatar alone had been the second most popular investment destination in the first quarter survey. Respondents to this latest survey also think that future investments in Egypt will be dependent on the country coming to terms with the IMF. Political deadlock

While there are clear national differences in the way that investors approach investment to the MENA region. in Kuwait has also had a negative effect on investor approaches to the country. As an investor in Saudi Arabia says, “It is all about sentiment and hope.” The survey also shows a growing desire by the region’s investors to enjoy region-wide consistency in regulation and passportable investment product; a fact that should provide the region’s lawmakers with food for thought. Particularly in the GCC, the region’s investors see the potential for market liberalisation, new investment product and harmonized regulation to help deepen both the region’s capital markets and offer endinvestors improved and more efficient investment products. “It is heartening to hear investors desirous of the opportunity

to offer their clients improved and more cost-effective investment products. The region’s investment market shows the potential that can be achieved by working and investing cross-border and, at the same time, driving and encouraging local market change, which is how it should be,” says Francesca Carnevale, Editor, FTSE Global Markets. The next quarterly survey will concentrate on the deepening of the region’s investment infrastructure and the findings will be released in January 2013. GFI

Mapping market change: Main survey findings  Investors remain positive about

Saudi Arabia, Qatar and Oman; and Dubai enjoys a comeback  Investors remain bearish on Europe, but very positive on South America and Africa  Investors keen to see coordinated efforts between countries to improve the regulatory environment and achieve more efficient capital markets  HSBC clear front-runner as a provider of custodian services to the region’s investors  Investors keen to achieve passportable investment product  Investors frustrated by constrained liquidity across the region  Investors keen to see more sophisticated products introduced (including derivatives, but under proper regulation)  Investors worry about Lebanon and Jordan, and to a lesser extent Kuwait, as political unrest waxes and wanes across the region

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Issue 79 â&#x20AC;˘ December 11

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GulfInsider -The Arabian Review MADE IN BAHRAIN

BAHRAIN

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

This month featuring:

Bahrainâ&#x20AC;&#x2122;s History in

TAIB Bank

Exclusive:

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Bahrain

Manama :

Low Risk City Manama is Lower Risk City than Milan, Lisbon, Istanbul and Moscow. Sana’a and Damascus are cities with the highest risk in the region and the world.

anama is among the lowest risk cities in the region, with a rating that puts it ahead of international business hubs such as Milan, Lisbon, Istanbul and Moscow, according to the findings from the 2012 People Risk Index, created by Aon Hewitt, the global human resources business of Aon plc (NYSE: AON). The Aon Hewitt 2012 People Risk Index measures the risks that organizations face with recruitment, employment and relocation in 131 cities worldwide by analyzing 30 qualitative and quantitative factors across five areas including,

Gulf Insider December 2012

demographics, education, government support, talent development and employment practices. Manama ranks 49th among the 131 cities covered in the Index and is the fourth-highest ranked city in the Middle East, behind Dubai, Doha and Muscat. Manama also finished higher on the People Risk Index than leading Asian business hubs such as Shanghai, Beijing, Kuala Lumpur, Jakarta, Colombo, Bangkok and Mumbai, and European capitals such as Rome, Krakow, Budapest and Belgrade. When it came to Middle Eastern cities, Manama was followed by Riyadh, Tunis,

Cairo, Amman, Tehran, Algiers and Rabat on the list, while Sana’a and Damascus were ranked the lowest of all cities involved in the survey. Based on Aon Hewitt analysis, MENA cities can be divided into two groups. The first group consists of cities with relatively low-risk ratings and includes the GCC cities (Dubai, Doha, Muscat, Manama, and Riyadh). The second group of cities, with relatively high risk ratings includes Tunis, Cairo, Amman, Tehran, Algiers, Rabat Tripoli, Baghdad, Sana’a and Damascus. Some additional key findings of the people risk factors are highlighted below.

Feature Bahrain Feature

Manama ranks 49th among the 131 cities covered in the Index and is the fourth-highest ranked city in the Middle East, behind Dubai, Doha and Muscat. there is great uncertainty in terms of government support and relations. In contrast, the low-risk MENA cities faced minor civil unrest and political changes and the economic stability in these countries is evident even during the Arab Spring, allowing employers to keep their workforce plans and manage capacity of talent over a longer time, with less disruptive and costly events. “This period is an inflection point in the development of the region; companies’ decisions on operating in the region are impacted by government limitations on expatriate workforce employment and incentives for employment of local talent”, says Radhika Punshi, Head of Applied Research and Solutions for Aon Hewitt in the MENA region.

Demographics risks are those associated with labor supply, the economy and the society. The key risk factors that differentiate the low risk MENA cities from the high risk group include the higher workforce productivity due to a more stable economic environment, future availability of workforce due to younger population composure and population inflow. This thus increases the workforce pool that companies can access. In contrast, there is a higher rate of emigration in the high risk group reducing the pool of available workforce in those cities.

Government Support: Risks associated with government policies that help or hinder the management of people. The key risk factors that differentiate the high risk MENA cities from the low risk group are primarily attributed to higher terrorism and political risk and violence and crime. In the recent Arab Spring (The Arab Spring refers to the series of demonstration and protest occurring across Middle East and North Africa that began in Tunisia in December 2010), the high risk cities were more affected with higher political and economic instability as the cities experienced significant parliamentary and policy reforms. Thus,

Education: Risks associated with finding qualified professionals. The key risk factors that differ between the low risk MENA cities from the high risk group include literacy rates, and secondary and tertiary enrollments. The low risk cities typically have high literacy rates of approximately 90% compared to the high risk cities with literacy rates that range from 56% to 83%. In addition, there is comparatively lower enrollment rates which would affect the availability of entry-level and professional talent thus increasing the recruitment risk for companies. Talent Development: Risks associated with the quality and availability of adequate recruiting and training resources. The low risk MENA cities have better quality training and educational institutes thus increasing the availability  Gulf Insider December 2012

Bahrain

The key risk factors that differentiate the high risk MENA cities from the low risk group are primarily attributed to higher terrorism and political risk and violence and crime. of good quality talents at different levels from entry, professional and managerial levels. In addition, low risk MENA cities have much lower levels of brain drain and more qualified talent from high risk MENA cities seeks out opportunities in the low MENA cities due to their higher salaries and better working environment. This thus imply that there is a trend of decreasing supply of qualified talents in the high risk cities, worsen by the insufficient training by government, private institutions and companies. Talent in high risk cities is not ready for entry level, technical or managerial positions. 30

Gulf Insider December 2012

2012 People Risk Index - Rankings of Cities in the Middle East and North Africa Region 29. Dubai

56. Riyadh

114. Amman

126. Tripoli

42. Doha

90. Tunis

115. Tehran

129. Baghdad

47. Muscat

112. Cairo

117. Algiers

130. Sana’a

117. Rabat

131. Damascus

49. Manama

Thus, companies in high risk cities are required to invest in sourcing the right talent or qualifying the talent they have access to. E m p l oy m e n t P ra c t i c e s : R i s k s associated with employing people at a given location, such as health care and retirement benefits, occupational health and safety, and equal opportunity. The low risk cities in MENA had lower risk in employment practices enabling organizations to adjust their workforce quickly to changing circumstances with relatively low cost. These cities have modest redundancy restrictions allowing greater flexibility for organizations in downsizing or restructuring operations. In contrast, the high risk cities have greater restrictions and companies will face greater difficulty and cost in downsizing workforce in these high risk cities. These

cities also have medium-high to high risks in terms of healthcare and retirement benefits as the governments do not provide significant support. In addition, cities in the MENA have a general trend of a lack of equal opportunities across the workforce which can severely limit the available pool of workforce. GFI

Download Aon Hewitt’s 2012 People Risk Index and check the portal for an upcoming Highlight Report on Talent Management Post the “Arab Awakening” for more details on employer risk related to talent management in the Middle-East and North-Africa: www.aonpeoplerisk.com The 131 cities were selected based on population size, rate of population growth, level of business investment and geographic spread among the cities covered.

Qatar

Qatar: Business Optimism Index Dun & Bradstreet South Asia Middle East Ltd (D&B) in association with Qatar Financial Centre (QFC) Authority have prepared D&B Business Optimism Index for Qatar for Q2 2012.

otwithstanding the Arab Spring and growing uncertainty faced by the countries in the Middle East, Qatar continues to enjoy robust economic growth and stability compared to many of its peers in the region. Being an energy exporter, Qatar will continue to record huge budget and current account surpluses as oil prices are expected to remain high. According to IMF estimates, exports of crude oil and refined petroleum products in 2012 will be USD 35.5 bn, while LNG and related exports will amount to USD 61.3 bn. The current account surplus is projected at 26.3% of GDP for the current year. According to estimates by the Qatar Statistics Authority, the mining & quarrying sector contributed 58.3% of Qatarâ&#x20AC;&#x2122;s total nominal GDP in 2011. The GDP of this sector for 2011 is estimated at QAR 364.46 bn, an increase of 52% over the previous year. In Q4 2011, the gross value added of this sector is estimated at QAR 96.11 bn, which represents an increase of 41.9% compared to Q4 2010. The real GDP of the mining & quarrying

sector grew 15.7% in 2011 compared to 2010. However, during 2012, real GDP for the sector is expected to drop below 3%, as Qatar met its targeted level for liquefied natural gas output in 2011, leaving little room for LNG to remain the key driver of high economic growth rates in 2012.

Factors Impacting Business

Among the issues expected to adversely affect operations in the second quarter of 2012; shortage of skilled labour and availability of finance continue to be ranked by businesses as the primary influences on their business. Inflationary pressure is the leading concern for 8% of the respondents. 31% of the firms do not expect any negative factors to impact business operations. Other factors that might influence business operations in Q2 2012 which have been cited by respondents include market conditions, competition, and lacklustre global economic growth.

Also, 36% of the firms plan to invest in business expansion in Q2 compared to 45% last quarter; while 31% will not invest in expansion. In the oil & gas segment, availability of skilled labor and inflationary factors are leading concerns, but for 28% of the respondents there are no negative factors that could adversely impact business operations in Q2 2012. Other factors cited by respondents include no new projects, the exchange rate, government policies and project delays. Business optimism indices are commonly used to get a better understanding of the growth expectations of the business community and its response to current developments within an economy. Issued quarterly, the D&Bâ&#x20AC;&#x2122;s Business Optimism Index for Qatar is based on an extensive survey conducted amongst the Qatari business community. The next Business Optimism Index for Qatar will be released in July 2012. GFI

For more information visit: www.qfc.com.qa Gulf Insider December 2012

Dubai - UAE

Dubai Market View 2012 T

he UAE continues to see positive economic growth whilst foreign direct investment (FDI) is also on the rise. The World Investment Report 2012 by UNCTAD, indicates that FDI into the country during 2011 witnessed a huge increase of nearly 40%, totalling US$7.7 billion compared with US$5.5 billion in 2010. Investment outflows have also expanded, growing by 8% during 2011 with total volumes reaching US$2.2 billion compared to US$2.0 in 2010. However, the figure is still well below 2008 levels where US$15.8 billion was achieved. According to recent data released by the National Bureau of Statistics, the UAEâ&#x20AC;&#x2122;s non-oil foreign trade grew by nearly 23% to just under AED928 billion during 2011, with Dubai accounting for the major share with 76% followed by Abu Dhabi with 15% and Sharjah with 7% of the total. Further positive economic signs were evident in Dubaiâ&#x20AC;&#x2122;s aviation sector as 4.4 million passengers passed through Dubai airports during the month of May, taking figures above 23.0 million for the first five months of the year. Passenger

Gulf Insider December 2012

Real Estate Dubai

• Foreign Direct Investment (FDI) into the country grew by nearly 40% in 2011 compared to 2010. • The UAE’s non-oil foreign trade grew by nearly 23% to just under AED928 billion during 2011, with Dubai accounting for the major share with 76%. • 4.4 million passengers passed through Dubai airports during the month of May, taking figures above 23.0 million for the first five months of the year. • Average Prime office lease rates remained unchanged for the sixth straight quarter, while secondary and tertiary locations continue to contract. • The residential market for both villas and apartments have shown positive growth during the quarter representing an average increase by 5% and 2% respectively.

numbers are now up 13% on the same period last year. The real estate transactional market remains on a positive track led by the residential sector. According to data sourced from Dubai Land Department, total residential transactions during the second quarter registered 3,165 compared to 2,745 in Q1, 2012. This represents a 15% increase quarter-onquarter. The total value of these transactions was recorded as AED4.0 billion against AED 3.1 billion in Q1, 2012. This translates into AED7.1 billion worth of residential deals during the first half of the year, with an average transaction value of AED1.2 million. As has been the trend in previous quarters, recent sales activity has been highly concentrated within established community locations rather than new and emerging projects. The office transactional market remains comparatively weak as the majority of occupiers continue to favour a leasing approach. Total office sales for the quarter were valued at AED605.8 million from 518 transactions, an increase of 34% when compared to AED451.3 million and 350 transactions in the previous quarter.

Residential market

the residential market in Dubai continues to outperform the commercial office sector with average lease rates for apartments and villas reflecting

The real estate transactional market remains on a positive track led by the residential sector. positive growth during the first half of 2012. A notable rise in sentiment has been evident from both owners and investors and this has resulted in some localised price growth for well-positioned products. Average apartment lease rates across residential districts registered growth of around 2% quarter-on-quarter, although apartments remain in negative territory on a year-on-year basis. Lease rates in established community locations have been appreciating at notably higher levels, outperforming the wider market. Popular areas such as The Greens, Downtown Dubai and Tecom C have witnessed an average increase in the range of 5-8% over the previous quarter. Occupancy rates are also on the rise as limited new supply and the availability of facilities and amenities have made these locations highly sought after for tenants. Newer districts continue to feel the pinch on performance with lease rates in the emerging location of Jumeirah Village for example, witnessing a 5% drop during the quarter, while Dubai Sports



Apartment Lease Rates – Q1, 2008 to Q2, 2012

Source: CBRE

Gulf Insider December 2012

Dubai - UAE

Villa Lease Rates – Q2, 2009 to Q2, 2012

Source: CBRE

City, Motor City, International Media Production Zone and Business Bay remained largely unchanged. Villa lease rates remain very strong, largely due to the limited availability of stock. Rents during the quarter increased 2%, taking average growth for the first half of the year to 5%. The highest growth was noted for villa units ranging from two to four bedrooms. Although there are major villa projects in the pipeline expected to enter the market in phases during the coming months, it is unlikely that this new supply will have a significant impact on lease and occupancy rates in established locations. However, new and emerging villa communities may initially see rise of competitive offers as investors look to avoid void periods amidst new supply.

Office market

prime office lease rates during the quarter ranged between AED970 and AED2,040/m²/annum reflecting a widening deviation in CBD rental rates when compared to the previous quarter. However, the overall average rate remained largely unchanged at AED1,500/m²/annum. The divergence in rents is largely

Gulf Insider December 2012

Prime Office Lease Rates – Q1, 2008 to Q2, 2012

Secondary Office Lease Rates – Q2, 2008 to Q2, 2012 the result of relocations out of ageing properties within the CBD, forcing lower asking rents upon subsequent release back to the market. Landlords of older properties within the CBD area are likely to struggle to maintain existing lease and occupancy rates moving forward, and this could result in average rents falling slightly after six straight quarters without movement. However, premium properties which are currently in very short supply, are likely to be able to command a notable premium and we may see a limited upturn in rents in the medium term. The secondary market remains under more stress due to the emergence of new supply and the negative implications of strata ownership that is afflicting the majority of emerging accommodation in areas such as Business Bay. Lease rates for the secondary market now range between AED590/m²/annum and AED1,400/m²/annum, with the highest rents in this category for buildings in the Tecom area managed by the Tecom Authority and the lowest in locations such as Jumeirah Lakes Towers, Business Bay and Tecom C areas. GFI

Source: CBRE

Outlook

the residential transactional market is forecast to maintain its positive footing during the remainder of the year. However, transaction volumes may be more constrained in Q3 due to the slowdown during summer and Ramadan wherein historically, the Middle East’s markets remain more subdued. Prime office lease rates are expected to remain relatively stable during the second half of the year, although the emergence of higher specification accommodation from the SCB Building could actually see the top end of rental rates rise. The DIFC market is likely to see mounting downward pressure on lease and occupancy rates, driven by an influx of strata owned space from private developers. However, occupancy rates within the more popular DIFC managed office properties are anticipated to remain high as a reflection of the two-tier market that is now emerging within the project.

This report was prepared by the CBRE Dubai Research Team which forms part of CBRE Global Research and Consulting

Abu Dhabi - UAE

Abu Dhabi

Market Review

ccording to the National Bureau of Statistics, the UAEâ&#x20AC;&#x2122;s non-oil foreign trade grew to AED927.6 billion during 2011 with Abu Dhabi accounting for 15% of this total. Figures released by the Abu Dhabi Chamber of Commerce and Industry have forecast private sector growth of 6.4 percent in 2012. Private sector contribution to GDP in 2011 was estimated at AED218 billion and is forecast to reach AED232 billion in 2012. Abu Dhabi International Airport continues to see an impressive expansion of passenger numbers with over 4.6 million recorded during the first four months of the year, representing growth of around 20%. In a move intended to further regulate the real estate sector, the government has recently announced new requirements relating to the provision of rental contracts and attested utility bills for family/spouse visa processing only. The rule is currently deferred for expatriates under company visa

Gulf Insider December 2012

Real Estate Abu Dhabi

sponsorship, giving temporary relief for the sizeable number of expatriate workers who could be directly impacted by these amendments. A recent report from the Department of Economic Development indicated that 2,161 new commercial licenses were issued in Abu Dhabi during the first quarter of the year. This took the total licenses registered in the emirate to 105,953. Continued growth in commercial activities is translating into some additional requirements for commercial accommodation and housing for employees and their families. However, at this stage new supply is outstripping new demand, resulting in growing vacancy rates across the market.

Office market

overall, activity in the Abu Dhabi office sector remains sluggish with the emirate’s moderate economic recovery so far failing to drive forward any real upswing in the real estate sector. With a large volume of new supply being delivered, further lease rate declines before the year end are inevitable. Although some notable commercial occupiers are actively seeking space in the market, many tenants appear to be waiting for the bottom of the current

Average vs Prime Office Lease Rates – Q2-2009 to Q2-2012

rental cycle before seriously pursuing new space requirements. Prime office rents during the quarter

Prime office rents during the quarter remained flat at around AED1,600 – AED1,900/sqm. remained flat at around AED1,600 – AED1,900/sqm, although rental variations were evident depending on the specific tenant and overall incentive package offered. With ever growing office stock, more competitive and creative incentive provisions are being utilised as part of standard leasing procedure. With many companies exercising a cautious business approach, coupled with rising vacancy rates, landlords are facing a mounting challenge to source tenants and maintain occupancy rates without sacrificing headline rents, particularly within older buildings. Secondary and inferior office products continue to suffer from widespread rental deflation which has averaged 8% since the start of 2012. A widening rental disparity has also become evident between good quality high specification products and lower-grade accommodations, with rents for poorer spaces now observed from as low as AED750/sq m. The most prevalent demand segment remains companies seeking small accommodation sizes from 300 - 500 sqm. However, despite the subdued nature of the market as a whole, there are a few notable leasing transactions in excess of 2,000 sqm that are under discussion within prime commercial developments at Etihad Towers, Sowwah Square and Nation Towers. As market uncertainties slowly dissipate, a more active leasing market should start to emerge with increased demand expected from the private sector, although this looks unlikely to take place during the current year. In addition to the effects of the traditional summer slowdown, anticipation of further rental reductions later in the year is influencing some occupier decisions to delay their real estate leasing requirements.



Gulf Insider December 2012

Abu Dhabi - UAE

Prime Residential Appartments Rents – Q2-2012

Average Rents for Residential Appartments – Q2-2008, Q2-2012

Outlook

Residential market

the flow of new residential units continues, with a large number of highend developments being completed this year, helping to diversify the existing product mix. With an expanding array of new waterfront properties and prime quality towers in central locations now available, there is growing interest from mid to highincome occupiers in search of an upscale lifestyle experience that was previously out of reach in the capital. Abu Dhabi’s rapidly changing residential landscape has resulted in a fragmented marketplace with specific areas and developments outperforming the wider market. This trend is envisaged to continue as inventory levels expand as more quality product is delivered. The residential market continues to witness declining rental rates with Q2 2012 seeing a fall 4% over the previous quarter and 24% from the same period

Gulf Insider December 2012

last year. However, this is in contrast to some new luxury schemes such as the St Regis Residences and Etihad Towers where rental values have remained broadly static over the period on the back of solid occupancy rates, strong corporate interest and the continued flight to quality. The recent amendment to Abu Dhabi’s visa law has drawn mixed reactions from the market and shared concern amongst lower-income expatriates who may be directly impacted by the potential amendments. Affordability remains a key concern for a large portion of the capital’s populace, but the proposed visa rules may have the impact of increasing housing costs for the relatively high proportion of the population that is currently residing in shared accommodation. Should the government choose to implement and enforce the no-sharing policy, the demand for smaller residential unit types could well escalate, inevitably to the detriment of larger properties.

Deflationary pressures are likely to persist during the second half of 2012 as new supply continues to outpace growth in demand and heightened competition aggravates already falling rents. As a fragmented marketplace increasingly becomes apparent, location and quality- specific disparities are likely to widen as tenants look to exploit opportunities as the market edges closer to the bottom. This will mean rising office vacancy levels in secondary locations and inferior quality properties as occupiers look to upgrade amidst availability of greater options in the market. GFI

This report was prepared by the CBRE Abu Dhabi Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. For more information contact: matthew.green@cbre.com

Advertorial Cars

Nissan Altima 2013 Nick Cooksey takes the latest Nissan for a spin

’ve been seeing quite a bit of the new Nissan Altima lately, having attended its launch events in both Bahrain and Dubai, and spending a day driving it around the roads of the UAE just last month. This month I was with the car yet again as I borrowed it for the day to drive around Bahrain, and thoroughly enjoyed the experience!

The Altima is Nissan’s bestselling car model in the world, and the 2013 incarnation is by far the best they have ever produced. It is packed with all sorts of cutting edge technologies to make your driving safer, more efficient, and even fun. I will not list everything here, but the things I immediately noticed was that the outside look of the car is a big

VOLKSWAGEN MIDDLE EAST

CELEBRATES ITS MOST SUCCESSFUL YEAR

olkswagen Middle East reported a 22 per cent increase in sales and also announced its collaboration with Rotana Group. The yearlong partnership between Volkswagen Middle East and Rotana Group was celebrated with a performance by Arabic star Wael Kfoury, who is signed to Rotana Audiovisual, and the world premiere of his new music video featuring a Volkswagen Touareg. Highlights that make 2012 a successful year are increased annual sales and the launch of the Passat and new Polo Sedan that complete Volkswagen’s full portfolio of the region. Launched in September 2012, the Polo Sedan has a 1.6 litre 105 HP engine

and a six-speed automatic transmission and includes 15 inch alloy wheels, dual airbags for driver and passenger, ABS, spacious interior. While the Passat has a 2.5 17 0HP engine with a six-speed automatic gearbox and is available in four trim levels. Commenting on the successful year and the event Mr. Thomas Milz, Managing Director Volkswagen Middle East said, “As a new member of the Volkswagen Middle East team, I am delighted to see the success that has been achieved over the course of 2012. Also, with the support of our dealer partners, we can now offer our Middle Eastern customers the complete range of Volkswagen models. This demonstrates our long-term commitment to the

improvement over the last model, with a noticeably wider and lower stance which gives it a more ‘aggressive’ look. On getting into the car, the next thing very apparent is that the interior of the 2013 model is of a particularly high specification compared not just to the last model, but also compared to all other rival models in its class. As I was driving under normal traffic conditions I was unable to really push the car and experience how it handles at high speed, but it certainly feels comfortable and solid when you put the foot down. In fact the seats are particularly comfortable and this is apparently due to Nissan using space age technology in their seat design. All in all, the car looks and feels far better than it should for the market segment that it is in. Nissan deserves to be very proud of what they have achieved with the Altima. GFI

For your own test drive in Bahrain contact YK Almoayyed & Sons on +973 1773 2732, or visit the Nissan showroom in Sitra.

Gulf Insider joined Volkswagen Middle East for a star studded event at the Yas Marina Circuit, Abu Dhabi. Middle East.” Sales in 2012 increased by 22 per cent from January to October, compared to the same period last year, making Volkswagen the fastest growing volume manufacturer in the region. Discussing the exclusive partnership with Rotana Music Mr. Thomas Milz, Managing Director, Volkswagen Middle East said: “The partnership with Rotana Goup is a great fit for Volkswagen Middle East. People in the Middle East are passionate about music and cars, and the strong sense of individuality that they express through both interests.” The collaboration will see Volkswagen Middle East supporting Rotana Music and its artists at events throughout the region next year. GFI

Gulf Insider December 2012

GCC Insurance

GCC Insurers face a crossroads A Analysis highlights deterioration of GCC insurersâ&#x20AC;&#x2122; profitability.

Gulf Insider December 2012

GCC study highlights an insurance profitability deterioration trend over the last four years across the top 30 conventional insurers dropping from 28 percent in 2007 to 9 percent in 2011, according to A. T. Kearney, a global management consultancy. Strong market pressure on all insurance segments is driving down the profitability of GCC insurers. Motor premiums, for example, have decreased by 23 percent over the past three years in the United Arab

Emirates. In medical insurance, healthcare provider costs have increased as much as 50 percent over the same period, while return on investment still remains low at 3.9 percent, down from 10.9 percent four years ago. â&#x20AC;&#x153;Insurers are competing on prices for motor to gain market share at the expense of profitability. In medical, insurers without a structured approach to managing healthcare provider network management are failing to limit price increases and

Insurance GCC

A.T. Kearney Insurer’s profitability has strongly decreased over the past five years with 2011 reaching a new low

68%

The insurance market growth remains promising in the GCC but insurers must maintain profitability to benefit from this growth.

struggling to pass on the full cost increase to clients,” said Cyril Garbois, Partner and head of A.T. Kearney’s financial institutions practice Middle East. Overall, technical profitability across business segments has reduced by 10 points over the past four years across the GCC. According to the analysis, lower technical profitability and suboptimal investment strategies are key contributors to the continuous decline. Insurers also suffer from lack of scalability of their operations. Operational and staff costs have increased much faster than the development of their business activity over the past four years. “Administrative and staff expenses have increased two times faster than business activity. This is mostly due to inefficient processes combined with a lack of proper integrated systems. Increasing size should provide insurers with the opportunity to leverage scale and decrease their costs,” said Cyril Garbois, Partner, A. T. Kearney. According to the study, unsuitable investment strategies have reduced investment income profitability by 17.5 percentage points. Experts said insurers must consider that financial markets might not provide strong returns. Establishing dedicated asset and liability management (ALM), distinct from the traditional finance function, secures commitments to policyholders by ensuring capital is always available

to meet periodic asset value shortfalls. Effective ALM permanently evaluates liquidity needs and develops appropriate investment and asset allocation strategies limiting volatile financial returns. Nevertheless, many insurers have managed to limit their insurance portfolio losses with more efficient reinsurance programmes. From 2007 to 2011, indeed the top 30 GCC insurers have increased their retention from 48 to 57 percent of gross written premiums. “Leading insurers are taking confidence in their underwriting capabilities and progressively retaining more premiums. They are also managing more balanced treaties with reinsurers capturing greater values from reinsurance,” said Cyril Gourp, Principal, A.T. Kearney’s financial institutional practice Middle East. The insurance market growth remains promising in the GCC but insurers must maintain profitability to benefit from this growth. As current market trends— combined with inefficient operations— are expected to erode insurers’ capital across the GCC, now is the time to create a road map for sustainable growth and continued profitability and to steer clear of potential profitability collapse. “Building pillars of profitability now will prevent further declines in the future and, if addressed comprehensively, will prime insurers for a rebound,” concluded Gourp. GFI Gulf Insider December 2012

Cars New Range Rover

THE ALL-NEW RANGE ROVER Nick Cooksey tests the worldâ&#x20AC;&#x2122;s most refined luxury SUV in the mountains of Morocco.

he Kingdom of Morocco is a beautiful country with the Mediterranean Sea to the North East and the rest of the coastlines facing the Atlantic Ocean and consists of a stunning mountain region. It was here I had the pleasure of driving the all new fourth generation Range Rover and I was not disappointed. I felt secure driving the Range Rover around the mountains of Morocco. This ultimate luxury car is beautiful and has the ability of never looking out of place, whether driving up a mountain or parked outside a fancy restaurant in Monte Carlo (or Manama). The exterior sees minimal necessary changes; a modern interpretation of iconic design cues, the most distinct features being the imposing grille, signature headlamp graphics and a smoother aerodynamic shape. Under the skin, there are revolutionising, radical changes such as the worldâ&#x20AC;&#x2122;s first lightweight all-aluminium monocoque SUV body, making the Range Rover weigh 420kg less and 39 per cent lighter than the previous model. In addition to the strong and rigid lightweight body, a new aluminum front and rear chassis has been developed with completely re-engineered four-corner air

Gulf Insider December 2012

New Range Rover Cars

How is the All-New Range Rover Better than Before?  The world’s first SUV with aluminium construction makes it 39 per cent lighter.  Lightweight suspension and unique Terrain Response® technologies.  Reduced noise levels for a serene cabin.  More legroom and spacious rear for executive class luxury.  Substantially improve cornering abilities.

Enjoying a morning coffee high in the Atlas mountains, arrived at by driving up dirt tracks inaccessible to most other cars.

The all new Range Rover delivered sharp cornering and was much tighter on the road compared to the previous model...

suspension. While the luxurious ride has been retained, the vehicle’s handling and agility have been significantly improved. The new suspension architecture delivers flatter, more confident cornering, with natural and intuitive steering feel. I noticed the all new Range Rover delivered sharp cornering and was much tighter on the road compared to the previous model. The interior is spacious and luxurious and features all the latest state-of-the-art technologies known to man. Before creating the new car, the Range Rover team asked customers what they would like to see changed in the upcoming model. The typical response was to keep it as it is, just make it better. It seems almost sad that most buyers of this amazing car will only ever use it on the road when it’s capable of so

many feats that it’ll leave other SUVs standing (literally). I thought it would be impossible to drive the car through hills and ravines as I took the Range Rover to the mountains under the watchful eye of the team. I was expecting to be impressed and I surely was. The Range Rover handled the rough terrain with ease and comfort. I found it strange to sit in such a luxurious and comfortable cockpit with the AC on and my favourite songs playing while outside the Range Rover was climbing a mountain. Occupants will feel serene isolation thanks to the rigorously optimised body structure and acoustic lamination of the windscreen and side door glasses have significantly reduced noise levels. Customers have the choice of three powerful V8 engines. The all-new Range

Rover’s luxurious interior features an excellent Meridian surround sound music infotainment system and more legroom to stretch out and enjoy it!. Seats are made from the finest leathers. Other specs include, soft door closing, powered upper and lower tailgates, Dynamic Response active lean control and Intelligent Emergency Braking, alloy wheels up to 22 inches and Executive Class seating package for rear passengers. The Executive Class seating option provides two individual rear seats with memory functionality, massage, nine degrees of recline and an extended centre console. The lavish ambience is enhanced by a central armrest with coolbox option, four-zone climate control and sophisticated mood lighting along the console. In my eyes, the all-new Range Rover is retaining its place as the ultimate luxury SUV with its unmatched capability and supreme refinement. GFI

For a test drive contact EuroMotors at Tel: +973 1775 0750 or visit the showroom in Sitra. Gulf Insider December 2012

Kuwait

Kuwait spends $16million on biggest firework display

uwait won a place in the Guinness Book of Records last month as it celebrated the golden jubilee anniversary of its constitution by staging the biggest fireworks display of all time. Fireworks illuminated the skies above Kuwait City as 77,282 fireworks were launched over an hour. The event marked 50 years to the day since the late emir Sheikh Abdullah al-Salem al-Sabah announced that Kuwait had become the first Arab state in the Gulf to issue a constitution and have a parliament. GFI

Gulf Insider December 2012

Image source: AP, EPA, AFP/GETTY IMAGES from www.dailymail.co.uk

Fireworks Kuwait

Gulf Insider December 2012

Bahrain

PAINTING FROM WITHIN

B Artist Archana Prakash translates the splendour and colours of Bahraini Heritage, Nature and Women with her creative flair. 46

Gulf Insider December 2012

orn and educated in Bahrain, Archana Prakash is a Marketing Executive and one of many expatriates that mould the beautiful Kingdom and add value to its heritage. Archana has been painting since she was 14 years old. Her mother, Ella Prakash, is a painter and runs her own art gallery. In addition to her natural talent, Archana learnt the art of painting from observing her motherâ&#x20AC;&#x2122;s work from childhood. The young artist says her inspiration for the hobby comes from within and she is most at peace when she paints. Archanaâ&#x20AC;&#x2122;s paintings are inspired by beauty; most of her collections are themed around Bahraini heritage, nature and women. She uses pastels, oil colours and water colours for her illustrations.

Painting Art

Archana has participated in art competitions during school years and occasionally exhibits her paintings in art galleries. She wants to expand her creative talent professionally and is working towards a future of fashion illustration and designing. In a short advice to all budding artistic talents Archana says that “Nothing is impossible, it’s a fortunate gift from God to be talented. To put that talent in its right place is our part and wonders will not come easy until we fulfill that duty. I say live for the passion you have, there is no greater thing that one can do to achieve happiness.” GFI

Archana’s paintings are available at Ella Art Gallery. Customized paintings can be ordered by contacting the artist at Tel: +973 3348 2769 Email: archana.anzar@gmail.com

Gulf Insider December 2012

Technology Tablets and Smart Phones

Tech picKs Innovative Tablets & Smart Phones With Christmas just a few days away, itâ&#x20AC;&#x2122;s time you check out the latest gadgets for loved ones and yourself! Apple iPhone 5

Thin, sleek and capable the iPhone 5 is 18 per cent thinner and 20 per cent lighter than its predecessor. It features a 4-inch display and a larger Retina display at 326 pixels per inch. So the games you play, the words you read, the images you see and the apps you love look and feel incredibly vivid and lifelike. With the new A6 chip, just about everything you do on the iPhone 5 is noticeably faster including better delivery of graphics and battery life.

WacomIntuos5 touch Medium

very

For creative professionals such as photographers, designers and illustrators or anyone who desires professional results, the Intuos5 touch Medium Pen Tablet combines Wacomâ&#x20AC;&#x2122;s most advanced pen technology with multi-touch functionality. With 48.4 square inches of working area, this tablet provides ample workspace for most tablet users.

Gulf Insider December 2012

Buffalo MiniStation Extreme

A shock-resistant external hard drive that provides 1TB of disk space. When plugged into a standard USB 2.0 port the disk manages read and write speeds of around 30MB/s. Plugged into a USB 3.0 port, however, the write speeds leap to an average of 85.73MB/s, with read speeds a very good 94.87MB/s. It includes US Military-grade shock protection and shock absorbers that surround the hard drive and Buffalo states it can withstand falls of up to two metres.

Amazon Kindle Paperwhite Patented built-in light evenly illuminates the screen to provide the perfect reading experience in all lighting conditions. Features new hand-tuned fonts - 6 font styles, 8 adjustable sizes and 8-week battery life. Holds up to 1,100 books - take your library wherever you go.

Feature Lifestyle Luxury

Lifestyle The latest selection of luxurious items to make life a little more glamourous!

For Him…

Prada – ‘Dipped Sneaker’ Two-tone construction and sleek styling define a classic sneaker with sporty flair.

For Her…

Calvin Klein – ‘Encounter’ Eau de Toilette Calvin Klein Encounter captures the essence of masculinity in all of its complexity with sophisticated layers of confidence, power and mystery.

Burberry – ‘The Britain’ A finely crafted Swiss watch, a brushed finish distinguishes the rounded steel case and bracelet, while a black dial stands out to display the date and threehand time.

BOSS Black – ‘Cristano’ Fine leather structures a sleek belt fronted by a slim, polished buckle.

Anne Klein - ‘Saturnalia’ Colorful enamel and crystals stripe a curvaceous gold bangle with sparkling contrast. Givenchy - ‘Beyond’ Milky faux pearls and semiprecious stones bead a comfortable stretch bracelet embellished with crystal stations and a logo plate.

MICHAEL Michael Kors ‘Signature Tote’ A chic, polished look that works day or night, corporate or casual. Dot-print monograms cover a slick patent tote with lots of pockets and a divided interior for expert organization.

Kate Spade New York ’La Pavillion’ A logo-engraved plaque graces the patent-leather exterior of a compact iPhone wristlet that stylishly stashes your phone along with cards and cash.

DKNY - ‘Nolita’ Multicolored crystals that add fun sparkle to the wide bezel framing and a pearly three-hand watch dial. A polished bracelet completes the sleek look. Gulf Insider December 2012

Lastword

Employment Scams Western Union offers tips to help consumers avoid becoming victims of job scams. Job seekers should be particularly wary of ‘easy money’ offers.

nternational Labour Organisation (ILO) has recently downgraded its Global Employment Outlook forecast for 2012 and 2013, revising upwards global unemployment rates to 6.1 per cent this year and 6.2 per cent in the next. The rate of unemployment is expected to rise in the Middle East from 10.2% in 2011 to 10.5% by 2013 (ILO Global Employment Outlook projections – April 2012). And, while job seekers are scouring the ‘Net and classifieds on the hunt for jobs, scammers are doing the same thing, except they’re on the hunt for unsuspecting victims. Consumer frauds targeting job seekers flourish, particularly online, during tough economic times. They generally start with a too-good-to-be-true offer - work from home and earn thousands of dollars a month, no experience needed - and end with consumers out of a ‘job’ and out of money. “Earnest people looking to make an honest living are often preyed upon by sophisticated scammers luring them in with ‘easy money’ offers,” said Shelley Bernhardt, Director of Consumer Protection at Western Union (NYSE: WU), a leader in global payment services. “But there are warning signs that can help

Gulf Insider December 2012

people steer clear of employment scams, like claims of guaranteed employment and having to pay up-front fees.” Knowledge is key to avoiding becoming a victim and, while there are lots of variations, job scams generally follow one of two patterns: 1. Scammers pose as ‘recruiters’ pitching offers of guaranteed employment or as ‘employers’ extending job offers on the condition that victims pay up-front for things like credit checks or application or recruitment fees. Victims pay, but job offers never materialize. 2. Scammers pose as ‘company’ representatives and seek sensitive personal and/or financial information from victims under the guise of doing credit or background checks. They target victims later on for identity theft. Here are some more tips to keep in mind: • If an offer sounds too good to be true, it probably is. With job scams, fraudsters lure people in with ‘easy money’ offers like high wages for little or no experience and promises of guaranteed employment. • Be skeptical of any job offer where you

have to pay money up front.

• If you’re communicating with anyone

by email, check for common red flags like poor grammar, misspellings, character/ spacing mistakes, and excessive capitalization. Look for use of generic email addresses rather than specific business email addresses. • Be cautious when dealing with people who say they currently live overseas or are out of the country on business. Scammers tell victims this to explain why they can’t meet in person. Be cautious also if they prefer to communicate via e-mail only. • Don’t send money to anyone you don’t know and trust, especially people you’ve never met in-person. There are trusted and reliable ways for people to send money to family members and friends. However, it is important to remember that a money transfer can be paid out to the receiver within a short time - even minutes - and after the money is paid, consumers cannot obtain a refund, even if the transfer was the result of fraud. GFI

For more information visit: www.westernunion.com/stopfraud

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