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January 2013 more inside...
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Cover Story
Bahrain’s Artificial Reefs
Contents
43. Cars
New 2013 Jaguar XJ
12
28
New General Manager at Kempinski
Regional Economic Outlook
Feature
MENA
18
36
Disaster Recovery Survey
Most Attractive Destination?
Research
22
Abu Dhabi
Rental Gap Widens
Dubai
42 Cars
New 2013 Cadillac ATS
46. Art
Inspired by the Outdoors
48. Tech Picks
High-end Digital Cameras
49. Lifestyle
New-year Picks by Your Favourite Brands
50. Last Word
Stop Worrying About Sales
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Cui Bono? In the days of ancient Rome when the republic was still a republic, Lucius Cassius, one of the city’s most venerated consuls, famously coined the phrase cui bono. It means as a benefit to whom?, and Lucius Cassius, inquisitive and analytical by nature, was always asking the question... whether he was investigating a crime or unravelling political corruption. Even as far back as the ancient Romans, someone always benefitted.This simple dictum still applies today, especially when governments pass stupid laws and policies. For example, the Department of Homeland Security decided that air passengers need to be bathed in radiation, so they went on a shopping spree buying $100,000 body scanners.
Publishers Nicholas & Rebecca Cooksey Editor in Chief Nicholas Cooksey Layout Designs Dhanraj S Admin & Finance Nikesh Pola Business Development Manager Sueallen Menezes
Who benefits? Why, avid body scanner promoter and former Secretary of Homeland Security Michael Chertoff, reported as having had questionable ties to Rapiscan Systems. Three guesses as to what they make. Sometimes the corruption is so obvious it’s just painful. There are some who believe that systemic overleveraging will eventually cause the international money supply, and prices, to collapse. There are also some who believe that perpetual printing and easy money will lead to substantially higher prices. Cui bono? In a deflationary scenario where price levels fall, it is the savers... people who have been responsible with their money... who benefit. In an inflationary scenario, it is the debtors... people who have been irresponsible with their money... who benefit. Which of these two groups is calling the shots? Why, the latter, of course. Governments, and particularly those in the West, need inflation. It’s the only way they can keep the party going and pay down their debts. Governments also benefit from inflation in surreptitious ways. In inflationary environments, wages tend to increase rapidly. As a result, workers in progressive tax systems end up being pushed into higher tax brackets, even though their inflation-adjusted wages have actually decreased. This constitutes yet another form of theft, and it primarily affects skilled, middle class workers, as well as those living on fixed pensions... all for the benefit of a fiscally irresponsible political class. And as we know, it is the political class that makes the rules, and it is to their benefit to inflate away their debt. The writing is on the wall, and the history is right there in front of us. The multi-award winning Arabian magazine
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It’s sad to see that the Takaful market is unable to grow and reach its potential due to multiple factors. Many people have resorted to Islamic banking or at least are familiarised with its main concepts since the recession hit. Living in a region that is the hub of Islamic Finance after Malaysia, it is crucial that Bahrain does its very best and benchmarks itself against the more prominent finance companies around the world. Soha, Manama
New Report Reveals Why
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Issue 93
Dubai Market View
It seems Dubai’s market is performing very well compared to Abu Dhabi. Certainly the aviation sector is one where Dubai always sees development, even at a time when the industry’s been hit hard internationally. Apart from that, sales activity has been concentrated within already established locations; hopefully this will change once new projects emerge, such as villa communities. In any case, I feel Dubai shows prospect of a bright future, especially since the real estate market has seen a 15 per cent increase quarter-on-quarter. Riyaz, Adliya
VIVA Bahrain’s Success
I’d like to truly applaud VIVA in achieving so much in such less time. I believe the telecom company has really come a long way and established itself as a successful business in Bahrain. As explained, it’s crucial to grasp onto innovation and apply it to your business; otherwise you might just get left behind. As each day goes by, more and more companies are embracing different forms of media to expand business. It is an ever-growing field and becoming prominent as it develops. Saleh, Juffair
New Payment Option
I was really glad to learn about Qatar Airways new payment option whereby customers can book their seats online and then pay at a local office. This is extremely convenient for those who don’t have a suitable credit limit. Even though it’s a minor change, Qatar Airways has still made a good decision especially since there are some people who are still skeptical of purchases over the internet. Certainly, booking online and completing the transaction with an executive face-to-face will add to the client’s feeling of assurance and security. Ms. Parkar
Bahrain
Real Estate Review
Saudi Arabia Market View
Government Tamkeen
Would you like to be a PUBLISHED Photographer?
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Salvatore Romano Ramee Grand Hotel & Spa
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If your photos of Bahrain and the region are good enough, they could be published in Gulf Insider/Areej/Bahrain Confidential magazines. Each month we publish the most impressive images we receive and give full credit to the photographer. Images must be at least 1mb and can be e-mailed to submissions@ArabianMagazines.com with the subject ‘PHOTO’.
Bahrain
Business News Jaguar Land Rover signs letter of intent with Saudi Arabia Mr Azzam Yaser Shalabi, President, National Industrial Clusters Development Program in Saudi Arabia and Dr Ralf Speth, CEO, Jaguar Land Rover signed a formal Letter of Intent stating an automotive partnership between the luxury Car Company and Saudi Arabia. Discussions are at a preliminary stage, although opportunities have already been identified in aluminium component production. The Saudi Arabian Royalty and government have expressed their support towards the initiative as this would boost the countries industrialisation plans. Jaguar Land Rover has quite a few projects in the pipe line and will announce them in 2013.
Eyad Sater, Jamal Al-Hazeem and Yousif Hassan Yousif cut the ribbon.
BMI Bank inaugurates bigger branch to better serve Tubli’s growing community BMI Bank launched a new full-service branch in Tubli. Mr Yousif Hassan Yousif, Director – Banking Supervision Directorate, Central Bank of Bahrain and Mr Jamal Al-Hazeem, CEO, BMI Bank were present at the official inauguration along with other bank officials. The bank is strategically located to serve customers residing in Jidali, Zinj, Um Al Hussam, Adhari, Tubli, Isa Town, A’ali, Zaid town, Saraya and Sehla. The new branch will offer a suite of financial products and services designated for business and personal requirements including premier banking solutions, flexible loans, retail banking services including the Bank’s flagship retail product Ayadi Savings Scheme and SME products.
Eng. Azzam Yaser Shalabi with Dr Ralph Speth
Mindshare Launches CSR Programme Global marketing agency, Mindshare, recently launched its corporate social responsibility program for orphans in Bahrain. The children were taken to Bahrain International Circuit where they experienced the track’s adrenalinefilled go kart racing. Mindshare collaborated with the Royal Charity Organisation (RCO), which is dedicated to serving the needs of Bahrain’s widows and orphans, in order to identify deserving beneficiaries and organise logistics.
Participants at Bahrain International Circuit 8
Gulf Insider January 2013
Business News
Lexus Global Hybrid Sales Exceed 500,000 Milestone Lexus, the leading luxury brand in the world, has sold globally more than half a million Hybrid vehicles since 2005 and until the end of November 2012. In addition the brand has seen line-up expansion and positive market response, going from 26,000 units in 2005 to 113,000 in 2012. Four Hybrid models were launched in the GCC region, starting with the LS600hL which was launched in 2010 and received a huge response from the customers who seek progressive luxury, followed by three new Hybrid models CT200h, GS450h, and RX450h which were launched in 2011 and 2012.
Bahrain Toyota Material Handling Division’s Accolade Toyota Material Handling Division at Ebrahim K Kanoo was awarded the Sales & Customer Support Excellent Performance 2011 Award, at the annual Toyota Material Handling International Distributor Conference which was held in Yokohama, Japan. Mr Hisham G. Andraos, Tech & Sales Manager at Toyota Material Handling Division at Ebrahim K Kanoo received the award from Mr Onishi, President of Toyota Material Handling International.Toyota Material Handling Division provides industrial and commercial companies with high quality equipment such as forklifts and lifting trucks, also the Ground Support Equipment for Airports, supported by a wide network around the Kingdom offering professional after sales services.
Charity Run by Alba Aluminium Bahrain B.S.C. sponsored the American Women’s Association’s Cherry Tree Trot 2012. The race was held at the Bahrain International Circuit in Sakhir. Cherry Tree Trot is a biennial event organised to raise funds for various charities in Bahrain that support the physically and mentally challenged. Its goal is to involve them in the race with volunteers available to push wheelchairs as well as running or walking alongside the visually challenged athletes. Top officials from Alba and the American Women’s Association committee were present for the event.
Basim Al Sharqi, Alba Chief Support Functions Officer presents the cheque to Tosin Arowjolu, AWA President in the presence of other Alba officials and AWA Committee Members
CPI Financial awards Diyar Homes “The Best Real Estate Investment 2012” Diyar Homes, a real estate development subsidiary of Kuwait Finance House-Bahrain(KFH-Bahrain), was honoured with “The Best Real Estate Investment 2012” award at the CPI Financial Islamic Business and Finance Awards Gala Dinner Ceremony held in Dubai. On receiving this accolade, Mr Abdulhakeem Alkhayyat, Managing Director & CEO, KFH-Bahrain and Chairman of Diyar Homes commented, “Winning this prestigious award demonstrates that Diyar Homes was able to prove that there is a real demand in the Bahraini real estate market for local housing needs.” He added that it confirms the success of the Bahraini real estate workforce, whether it be engineers, architects or contractors. Gulf Insider January 2013
9
Bahrain
Reef balls in Bahrain’s waters.
Bahrain’s Artificial Reefs Reef Arabia talks about rehabilitating the marine environment. Bahrain Artificial Reefs Reef Tower and Barracuda Photo by Hani Bader
Three hamour fish in a Reef Ball 10
Gulf Insider January 2013
Under the auspices of the Supreme Council for the Environment (SCE), Reef Arabia, in association with Environment Arabia Consultancy Services, was commissioned to design, construct, deploy and monitor ten artificial reef complexes (comprising over 2600 reef units) at strategic locations within Bahrain’s waters. The key objective of this ambitious project is to replenish and sustain Bahrain’s currently dwindling fish stocks through the provision of essential fish habitat, with a view to expanding the project should this initial phase prove successful. It was decided at the outset that the US patented Reef Ball unit would be the mainstay of the artificial reef design although indigenous designs which reflect Arabian architecture (the ‘wind tower’) and mimic the natural topography of the seabed (the ‘ridge module’) have been included. The majority of reef unit types, including all Reef Balls, are constructed at Reef Arabia’s manufacturing facility in Riffa, using a high strength (50+ MPA) marine-grade concrete mix. The Bahrain Artificial Reef Project seeks to increase the productivity
Reef Arabia Bahrain Close-up of a reef ball, now home to many fish species...
Reef Arabia also aims to increase environmental awareness and promote public participation and educational programmes. Eco-Tourism and Educational Potential
of Bahrain’s commercial fisheries in the long-term. Many target species such as the Orange-spotted grouper (locally referred to as hamour) have declined in numbers in recent years, primarily as a result of the combined impacts of habitat destruction, in particular dredging and land reclamation activities, and overfishing. It is essential that the artificial reefs are afforded adequate protection to allow associated faunal and floral communities, including fish communities, to become established. Only when those species which have initially been attracted to the artificial reefs have been given the opportunity to settle and successfully reproduce over several generations will there be a tangible increase in fisheries productivity. If fishing in the vicinity of the reefs (but not on the reefs themselves) is effectively managed in the long-term then the benefits to fishermen, through increased catches, and ultimately the fisheries economy as a whole, may be seen.
Reef Arabia’s objectives include the enhancement of private coastal developments with artificial reefs as a form of environmental compensation, in addition to creating underwater marine theme parks, and promoting eco-tourism in Bahrain. The tourism sector can benefit from the presence of artificial reefs, through the provision of prime SCUBA diving sites, especially for private developments. As intriguing diving locations, artificial reefs support a diverse range of marine fauna and flora, in addition to the numerous species of fish they attract. Over fifty fish species have been recorded to date on the Bahrain Artificial Reef Project, together with a variety of other marine organisms. Protection of the reefs as a fisheries resource is a priority and any recreational activities on these reefs should be managed with mechanisms in place to ensure such activities do not reduce the diversity and function, and ultimately the productivity of the reef ecosystems in the long-term. The involvement of schools is also a very important element which Reef Arabia is promoting, by providing hands on educational experience for the
younger generation to learn more about artificial reefs and how to protect the marine environment. GFI
For more information, please visit www.reefarabia.com Tel. +973 1753 3259 Fax +973 1753 3754 Email: info@reefarabia.com
About Reef Arabia Reef Arabia was established in January 2012 and comprises local and internationally based marine biologists who provide real solutions in mitigating environmental impacts. The company is one of the largest authorised suppliers in the GCC of a wide range of artificial reef units including both licensed Reef Ball units and locally designed structures. Reef Arabia specialises in the design, construction and deployment of artificial reefs, in addition to site selection (site investigations to make sure the reefs are in suitable locations), monitoring, and coral transplantation & relocation. Reef Arabia also aims to increase environmental awareness and promote public participation and educational programmes.
Gulf Insider January 2013
11
Bahrain
Mr Puneet Singh
New GM At Kempinski Bahrain Gulf Insider meets up with the new General Manager, Mr Puneet Singh.
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Gulf Insider January 2013
Hospitality Feature
Kempinski for a cause…
The luxury hotel is involved in numerous corporate social responsibility programmes and is always looking out for new opportunities to help. Unused food from Kempinski’s kitchens, make their way to the many pets under the care of Tony the Dogfather. As a festive initiative, Kempinski had a ginger bread decoration every Friday, until the end of December 2012, outside T-Spoon the proceeds of which went to The Palm Association. The hotel has numerous other projects in the pipeline which they choose to reveal at an appropriate time, so watch this space!
K
empinski Grand & Ixir Hotel, located at Bahrain City Centre, arguably the island’s most happening shopping destination, appointed their new General Manager in September this year. “I’ve been with Kempinski for the last 20 years and have seen it evolve especially over the last five years,” shares Mr Singh who has rich experience in the hospitality industry. “Kempinski Bahrain is as much focused on Bahrain’s residents, that is the local community as it is for overseas guests,” he says and immediately cites an example to better explain the hotel’s strategy to brand itself as a hub for locals, “unlike many other hotels, Kempinski offers access to the hotel pool area for people coming to have brunch here. This enables families to experience the hotel and adds to the fun for the kids; it’s all about families.” Mr Singh cites another innovation ‘Lady in Red’. It is similar to the European concierge concept but rather than guests being required to walk over to a desk, they are approached and welcomed by a lady dressed in red. She is in effect a walking concierge who advises and directs guests as needed. This idea has been introduced at Kempinski hotels around the world since 2008. One of Kempinski’s unique recruitment methods is Career Day where they
When recruiting talent, the most important characteristic I look for in a candidate is attitude. tap their internal talent-pool for intercompany transfer. This is an excellent opportunity for employees to meet GMs of many Kempinski hotels under one roof on a single day and discuss career and transfer options. Mr Singh talks about a Career Day that he attended in Abu Dhabi the week before he met us, saying that it had a ’90 percent success rate’. He shares, “When recruiting talent, the most important characteristic I look for in a candidate is attitude.” He believes that Kempinski more than matches their rivals when it comes to hospitality and service adding with a smile, “Even on the few occasions when we do receive a complaint from a guest it is as often as not followed by a compliment about our staff such as ‘but your people are so nice’.” Regarding future innovations in the luxury hotel sector, Mr Singh believes that the ultimate in luxury is, at least for
his typical guests who are often in high powered positions, time with a ‘human touch’. He recognises that many guests at Kempinski have fast-paced schedules and his team does everything in their power to cater to the needs of these guests. An example of this is easy checkins at the hotel where guests are invited to relax on a sofa while a staff-member takes care of all their arrangements. A mobile check-in service has further been introduced for guests who need ultrafast check-ins so they can go straight to their rooms on arrival. We ask Mr Singh why he chose a career in the hospitality industry. “It was a natural choice,” he replies, “I realised at a young age that I love working with people and that I love cooking and restaurants.” He further tells us how he finds the various aspects of his work, which expose him to different cultures and an understanding of different people, highly gratifying. Mr Singh loves Bahrain’s cosmopolitan culture and easy-going lifestyle. He enjoys interacting with the people here and believes that his stay in the kingdom will be a memorable one just like his ‘all-time favourite experience’ - Kempinski Istanbul, a city where he was based for several years; we hope even better! GFI
For bookings contact Tel: +973 17171000 or visit www.kempinski.com/Bahrain Gulf Insider January 2013
13
Feature Cyberhackers
2013: Advancing Threats, Advancing Opportunities
“I
genuinely believe we are only a whisker away from some form of catastrophic event that could do damage to the world economy or critical infrastructure,� says Art Coviello, Executive Vice President EMC, Executive Chairman RSA, The Security Division of EMC. Coviello believes that while the trend of targeted cyber-attacks will largely continue, the underlying tactics and the people behind these tactics will continue to evolve, ultimately changing the larger security landscape in 2013. Organizations must now more than ever, approach security with the assumption that a security breach will occur and look beyond traditional security practices to leverage more intelligent systems to provision comprehensive protection. Below are his predictions for the upcoming year: 1. The hackers will likely get even more sophisticated. Evidence of criminals collaborating with rogue nation
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Gulf Insider January 2013
states, exchanging methodologies, buying and selling information, and even subcontracting their respective capabilities expands their collective reach and enhances their mutual learning curves. 2. Increasing investments to provision pervasive mobility together with the steady adoption of cloud services will expand the attack surfaces at the expense of the perimeter. 3. Changes will occur whether security teams are ready or not and enterprises will realize the need to address the critical skills shortage of security professionals 4. National governments will continue will continue to struggle to legislate on rules of evidence, information sharing and reforming privacy laws. Lack of privacy reform is particularly troublesome based on today’s realities because many organizations have literally been put in the position of violating one set of privacy laws if they take the necessary steps to protect information, which they are
legally obligated to do based on another set of privacy laws. 5. It is highly likely that a rogue nation state, hacktivists or even terrorists will move beyond intrusion and espionage to attempt meaningful disruption and, eventually, even destruction of critical infrastructure. 6. Responsible people in organizations from all verticals, industries and governments will move to that newer intelligence-based security model and pressure governments to act on our collective behalf. 7. There will be significant uptake in investment for cloud-oriented security services to mitigate the effects of the serious shortage in cyber security skills. 8. Big Data analytics will be used to enable an intelligence-based security model. Big Data will transform security enabling true defense in depth against a highly advanced threat environment. GFI
Feature ME Enterprises
Middle East Enterprises Need to Look Behind the Cloud to Uncover Hidden Costs Enterprises in the Middle East should be aware that there are a number of hidden costs lurking behind the cloud and they need to keep their eyes open in order to avoid incurring huge costs in the long run.
A
nalysts forecast that over the next three to five years the market for cloud-based contact center solutions will grow at a rate of about 18 to 20 percent. Compare that to the growth of premise solutions, which is in the low single digits and forecast to plateau or even diminish over the same period. It is therefore essential to be aware of what is hidden behind the cloud cover. When Cloud computing first moved on to the IT horizon in the Middle East, many of the headlines focused on how this future
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hosting option would save businesses money. Experts and vendors alike touted the potential savings that cloud solutions could offer to companies. However, as with most things in IT, the picture became less clear the closer you got to it. In fact, as many businesses have since discovered there can potentially be a number of hidden costs to cloud computing that may lead to an overall increase in expenditure. Dave Paulding, Regional Sales Director for UK, Middle East and Africa, Interactive Intelligence says that Cloud computing
Feature ME Enterprises Feature
When a company signs up for a cloud computing service, the most common contracts are for a set cost per user per month, for a fixed duration.
certainly has far less costs than the traditional way of acquiring technology – for a start, it removes the range of expenses associated with on premise and IT communications systems. However, to reap the significant cost savings that cloud solutions can bring, businesses need to adopt a cautious approach when choosing a provider and be clear about every upfront and ongoing cost associated with it. Choosing the right service is vital to not only save costs, but also to improve their visibility and predictability.
When a company signs up for a cloud computing service, the most common contracts are for a set cost per user per month, for a fixed duration. Ideally, any so-called ‘hidden costs’ that might be expected from a service should be included in this rate. Having a fixed manageable cost is a very attractive proposition for CFOs, the budget visibility makes it very easy for companies to predict their monthly IT spend and is ideal for today’s cost conscious businesses. The industry’s most successful cloud computing providers are flourishing, not only because of the benefits of their products but because they offer a fixed financial model for organizations to take advantage of. The key is that providers still provide a known fixed price for any bespoke work. This is one of the areas where many of the cost ‘surprises’ tend to creep in - when a company wants to change its contract, whether it is moving premises or increasing or decreasing the number of users, or expanding and adding more services. It’s not about the usage costs – the hidden costs come in with any integration or development which may be required, in fact, any kind of customization of the solution. Some providers are not clear about such costs and these could be ongoing depending on the nature of the solution. True cloud based applications should allow the user to manage and administer any changes to cut out the neverending developing, integration and adaptation costs. One way of doing this is for vendors to limit the amount of customizations and changes to the system to keep
costs down and therefore ensure that the cost passed on to the customer is lower. It makes it easier to maintain multiple customers on the same hosted platform. If they’ve all got different, unique requirements it is inevitably more complex and costly to manage. Other common hidden costs which can fall outside of the normal monthly subscription fees could range from something as simple as telephone costs, which are determined by how the system is designed and how the business connects to the solution, to data retrieval, or to something more significant like purchasing additional bandwidth to increase internet traffic. Cloud services obviously rely on fast and reliable broadband connectivity. A slow service could have a huge impact on productivity if employees are not able to access applications as quickly as they need to. Likewise, if connectivity is lost, then work is likely to come to a standstill. Both of these scenarios have to be considered carefully when looking at the service offered by an ISP and what they charge for the bandwidth required to use the cloud. So clearly, the hidden costs that businesses need to be aware of are not just about providers offering transparent pricing, it is just as important to consider the impact the cloud service can have upon business operations. Not all clouds are the same and businesses need to examine how a service is delivered, as this can have a great impact on control, which in itself is costly. As cloud applications and their underlying architectural platforms become more robust, so too will discussions around the ‘true’ costs of the business systems that incorporate them. CIOs and C- level executives involved in the decision to migrate to the cloud need to make sure they fully understand the up front and ongoing costs involved. The fixed monthly or yearly costs may be black and white but the cost for set up, implementation and customization is still largely a grey area for several providers. Businesses don’t need this additional financial black cloud hanging over them, every single cost should be fully documented and understood so there are no hidden surprises. GFI
Gulf Insider January 2013
17
Feature Disaster Recovery Survey
The Disaster Recovery Survey The Disaster Recovery Survey 2012 looks at the maturity of backup and disaster recovery strategies in the Middle East. It aims to understand how backup transformation can help companies prevent data loss and systems downtime.
T
he research shows that the main causes of data loss and systems downtime are the failure of internal IT systems and disruptions caused by malicious activity. This compares to just 13% of respondents citing natural disasters as a cause of systems downtime or data loss. In response to such incidents, improving security is seen as key with 44% of businesses having improved physical security and 43% digital security, this despite the fact that security breaches were the third most common cause of
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data loss and downtime. Meanwhile, 37% of respondents stated that they have reviewed and changed procedures for IT systems backup and disaster recovery following an incident. The study, commissioned by EMC and conducted by independent research company Vanson Bourne, identified that there are measureable business impacts from systems downtime, with the top three cited as: 1. Loss of employee productivity: 43% 2.  Loss of loyalty: 37%
customer
3. Loss of revenue: 28%
confidence/
Systems failure resulted in, on average, nearly two lost working days for each of the businesses in the survey. Based on an average eight hour working day, this is the equivalent of 32,000 man-hours lost for a company employing approximately 2,000 employees. Additionally, each organization lost an average of 133GB of data during a 12 month period. Given that 1MB of data is approximately the equivalent of 25 email documents in size, losing 133GB of data would be the equivalent of losing 3.325 million emails. The research has also highlighted that businesses are not protecting valuable
Disaster Recovery Survey Feature
Businesses in the Middle East are failing to take advantage of insurance premium benefits that a comprehensive disaster recovery plan can engender.
82% of Businesses in Middle East Might Not be Able to Recover Lost Data and Systems.
customer data, with only 23% having a disaster recovery plan in place for CRM applications. Businesses in the Middle East are also failing to take advantage of insurance premium benefits that a comprehensive disaster recovery plan can engender. 25% of the organizations surveyed are offered reduced premiums by their insurance provider according to the strength of their IT systems backup/ disaster recovery strategy. However, 57% of the organizations surveyed did not know if their insurance provider offered such reduced premiums – or they had never considered it at all – highlighting a missed opportunity for many businesses. For backup and disaster recovery purposes, 52% of companies surveyed still rely on tape. Beyond tape, 48% of companies still rely on the outdated CDROM for backup storage for disaster recovery purposes. Currently, only 41% of businesses in the region are using modern, disk-based backup and recovery solutions. Preparedness for routine disruption or more significant incidents starts with a next-generation backup approach that
leverages disk with data deduplication and network based replication technologies. The survey shows the reaction after disruption is to spend more on backup and recovery, but the damage is done in terms of time and money during a downtime as well as longer term damage to customer loyalty. Within the finance sector, it is notable that only 22% of businesses surveyed believe they are currently not spending enough on backup and recovery. While 69% of businesses to have experienced data loss within the sector stated that they had experienced it due to security breaches, the financial sector also reported hardware failure as a major cause of systems downtime, with 68% of respondents having had experience of this. GFI
• For more information on the survey conducted in the ME visit: http://emc.im/ EMCDR2012 • For more information on the survey conducted in the EMEA visit: http:// emea.emc.com/microsites/2012/emcbrs-survey/index.htm
Gulf Insider January 2013
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Feature Personal Data
Personal Data: Threat in Digital Economy Lack of Trust in Use of Personal Data Threatens Digital Economy, Says New Report.
T
he Internet economy in the G-20 is larger than the GDP of Brazil or Italy and is expected to nearly double to USD4.2 trillion by 2016. However, this growth could be severely limited without an effective set of “trade rules” to ensure the appropriate flow of personal data. Rethinking Personal Data: Strengthening Trust, a new report from the World Economic Forum, produced in collaboration with The Boston Consulting Group, suggests that appropriate use of personal data can create enormous value for governments, organizations, and individuals. It can help achieve new efficiencies in business, tailor and personalize new products, help respond to global challenges, and empower individuals to engage in social, commercial, and political activities more effectively . Personal data, however, remains an asset without clear trade rules and, as a result, is at significant risk of not yielding potential value. High-profile securitydata breaches are commonplace. Individuals are increasingly concerned about intrusions into their privacy and the possibility of their personal data being used for purposes of which they do not approve. Companies are unclear about what they can and cannot do with
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Gulf Insider January 2013
personal data and are either standing on the sidelines or forging ahead with an unclear understanding of liabilities and the potential for negative impact on their reputations and brands. Governments are proposing various laws and regulations to protect privacy while also aiming to encourage innovation and growth. The question is how to establish a clear, robust set of rules that will enable appropriate data flow and fit the speed at which today’s hyperconnected world moves. There must be clear rules and accountabilities but also sufficient flexibility to deal with a rapidly moving, complex, and uncertain set of needs and opportunities. The report analyzes these challenges and outlines concrete steps that stakeholders can take, focusing on three areas:
• Upgrading Protection and Security. Focus on how to protect privacy and secure personal data against intentional and unintentional security breaches and misuse. • Agreeing on Rights and Responsibilities for Using Data. Establish consensus on rights, responsibilities, and permissions for use of personal data that recognize the importance of context and the need
Appropriate use of personal data can create enormous value for governments, organizations, and individuals.
to balance the interests of multiple stakeholders. • Driving Accountability and Enforcement. Hold organizations accountable for protecting and securing personal data and using it in accordance with the rights and established permissions for trusted flow. Joerg Hildebrandt, Partner and Managing Director at BCG Middle East said, “The findings of this report are equally relevant for the Middle East where the digitial economy is becoming an important component of many countries’ GDP. To give one example, the Saudi Internet economy is projected to rise to SAR107 billion by 2016, representing 3.8 percent of GDP. Trends such as this, combined with several other indicators (the growth of social media, the high rates of internet and mobile phone penetration etc) point to increasing levels of connectivity which would further facilitate the flow of personal data in the region. This means that dialogue about the frameworks required for the use of this personal data is becoming increasingly important”. GFI
A copy of the report can be downloaded at www.bcgperspectives.com
Data Management Feature
Data Management: ME Companies With data growing 80% year on year, Middle East companies need to adopt cost effective modern approaches to be effective.
B
usinesses in the Middle East are under immense pressure to manage massive amounts of complex data. Information levels are estimated to be growing at up to 80% year on year and the biggest challenge associated with that comes from the dramatic increase in managing unstructured data from emerging sources – desktops/laptops, audio/visual files, images, databases, social media and a variety of other data types that are prominent in an organisation, but frequently managed in ‘silos’. This unrelenting growth is a major force driving the ‘Big Data’ debate, which is further compounded by the universal adoption of virtualisation, the rapid shift to cloud-enabled services, the influx of mobile computing devices, demand for 24x7 operations and increasing consolidation. Data management expert Simon Gregory, Business Development Director at CommVault Systems says that whilst Big Data brings with it a lot of good regarding new ways to create information that offers real business value it also presents a new set of challenges for the IT department as organisations struggle to find ways in which to keep pace with more demanding service levels for recovery and collapsing backup windows - which often leads to overloaded
networks and a tendency to turn to more costly alternatives. A fundamental issue here appears to simply be that there just isn’t enough time, resources or budget to manage, protect, index and retain massive amounts of unstructured data. The negative side effects of Big Data, which include risk, complexity and cost, clearly need to be met head on if the positive benefits are to win out. There is an alternative approach, which is to adopt a unified data management strategy which collapses data collection operations into a single solution enabling the copying, indexing and storage of data in an intelligent, virtual repository that provides an efficient and scalable foundation for e-Discovery, data mining, and retention. Such an approach also enables data analytics and reporting to be performed from the index in order to help classify data and implement archive policies for data tiering to lower cost media. This also serves to reduce the total cost of ownership. Whilst there are many ways to create Big Data, organisations that want to take control of the data mountain would be advised to consider adopting a ‘Copy Once Re-use Extensively’ (CORE) strategy if they want to manage Big Data cost effectively in the long term. The key benefits to CORE are simple:
Big Data brings with it a lot of good regarding new ways to create information that offers real business value it also presents a new set of challenges for the IT department. • Process data once • Store data once • Retain data once • Search data from one place • Centralise policy management • Automate tiering of data while
maintaining hardware and storage flexibility
• Synchronise data deletion and automate space reclamation
A single data store would empower businesses to streamline data preservation and eliminate data redundancy during the review process which is now considered to be one of the major causes of skyrocketing data management costs. The ability to more easily navigate, search and mine data could fundamentally mean that Big Data is finally viewed as an asset to the business, not a hindrance. GFI Gulf Insider January 2013
21
Abu Dhabi - UAE
Rental gap widens as quality rules The Roost in Abu Dhabi
Prime developments sustain rates while vacancy levels increase in older buildings; demand for mid-to-low budget apartments boosted by visa renewal-accommodation link, says latest Asteco report.
T
enants living in Abu Dhabi have been taking advantage of select new prime developments offering high quality finishes and amenities at competitive rates after 7,400 apartments and 1,675 villas were added to the UAE capital’s property market since the start of 2012. According to the latest Q3 2012 report from UAE property management company Asteco, many of the quality developments have generally been able to sustain their current rental rates over the last quarter given strong levels of demand. However, landlords of older buildings formerly considered prime, have seen vacancy levels increasing and rates falling as tenants relocate. “Consequently there is a widening rental gap between prime developments and the rest of the market,” said Elaine Jones, CEO, Asteco. “In addition, the new regulations being implemented linking the renewal of residency visas with accommodation arrangements is starting to impact the
22
Gulf Insider January 2013
Real Estate Abu Dhabi
market with an increase in demand for mid-to-low budget, two-to-three bedroom apartments in central Abu Dhabi,” added Jones. Apartments in good quality developments such as Al Raha Beach, Marina Square, and Shams Abu Dhabi, saw rental rates fall 3%, 2% and 1% respectively, linked to the amount of supply available in these developments. In Marina Square, rental rates start at AED 95,000 for a two-bedroom apartment. It’s a different story for apartments in older, less sought after buildings with inadequate parking, which witnessed falling rents of between 4% and 8%. A lower quality two-bedroom apartment in Central Abu Dhabi, now commands in the region of AED55,000 to AED65,000 per annum. Villa rental rates were relatively unchanged, with Al Reef showing the largest fall of 4% over the past quarter. Villa rental rates in Al Raha Gardens, Hills Abu Dhabi and Golf Gardens were generally unchanged on average. At the
top end of the market a four-bedroom villa in Saadiyat Beach now rents for a minimum of AED 275,000, whereas at Al Reef four –bedroom villas will only cost a prospective tenant between AED125,000 and AED 130,000. “Tenants are willing to pay a premium for quality, waterfront living in a mixeduse setting that has a community aspect,” said Jones. Apartment sales in Abu Dhabi during Q3 2012, followed a similar trend, to that of the rental market with sales prices for quality properties falling by an average 2% across the board. A two-bedroom apartment in the popular Al Bandar development at Raha Beach now costs AED11,724 per square metre. The villa sales market in Abu Dhabi saw limited transaction activity, therefore villa prices remained generally unchanged. Commercial leasing activity continued to improve as quality office space became available at attractive terms. With over 24,000 square metres of leasable space, Nation Towers, which will be ready for
The renewal of residency visas with accommodation arrangements is starting to impact the market with an increase in demand. tenant fit-out by the year end, is already 90% pre-leased, with heavy demand from government entities. “The bulk of requirements remain for small (less than 300sqm), fitted space at competitive rates,” added Jones. GFI
For full report visit: http://www.asteco. com/uae/dubai/research-library-listing
Gulf Insider January 2013
23
Dubai - UAE
Dubai Rents Up
and sales flat in Q3
Q
uality residential developments in Dubai built upon their strong performance in Q2, with average rental increases in Q3 2012 of 2% for apartments and 3% for villas. Residential sales prices were relatively unchanged, even though increasing numbers of units were advertised at inflated prices, while the commercial property market remained subdued due to a lack of demand, according to the latest Q3 2012 report from property management company, Asteco. Apartments on Sheikh Zayed Road and Downtown Dubai showed the greatest rental increases, with a two-bedroom apartment annual leasing rates up 6% at AED105,000 and up 4% at AED120,000 respectively. Leasing rates for villas followed a similar steady trend, with the Palm Jumeirah leading the way with a 7% increase. A three-bedroom house now rents for AED325,000 per annum on average. The Springs and the Arabian Ranches were next in line with increases of 5% and 4% respectively. Three-bedroom villas were leasing for AED125,000 per annum in the Springs while similar properties in the Arabian Ranches were leasing for 24
Gulf Insider January 2013
AED145,000 per annum. “The increasing rental rates are due to the lack of a certain unit type, whether that is larger three-bedroom units in towers or smaller townhouses in villa communities,” said Elaine Jones, CEO at Asteco. “The reason for the shortage of a particular unit type is either the low number of units initially available or high occupancy rates within certain developments,” she added. Asteco also witnessed increased rates in some of the emerging communities such as Jumeirah Village, which can in part be put down to the increased demand as infrastructure, landscaping and the retail offering improve. “It is also true that increasing rents in more established developments and the consequent outflow of residents unwilling or unable to pay the hiked rate, are adding upwards pressure to the rental rates,” commented Jones. Overall sales prices in Q3 2012 remained stable after the steady increases which were recorded at the beginning of the year. The summer coinciding with Ramadan resulted in lower enquiry levels and consequently no significant pickup.
Apartment and villa rents up 2% and 3% respectively since Q2 2012; real sales prices unchanged; commercial property market quiet, says Asteco Q3 2012 report. Apartment sales were relatively unchanged since Q2 2012 - the only movement was seen in the Greens, which recorded a 3% increase, edging up to AED8,800 per square metre. Apartment sales prices in DIFC and the Palm Jumeirah, still the most expensive areas, both commanded AED14,000 per square metre. There was also little movement with villa sales, which were flat across the board. Once again the Palm Jumeirah is still the most sought after with villas changing hands for AED17,200 per square metre, compared with AED5,400 per square metre in Jumeirah Village. The commercial market has also been rather passive since the beginning of June, which was reflected in the office sales and rental rates, which remained unchanged. “One trend we have noticed is that tenants and or buyers of office space are demanding significant discounts and incentives before committing. This is likely to continue as more supply enters the market,” said Jones. GFI
The full Asteco Dubai Q3 2012 report is available online at www.astecoreports.com
Report GCC
GCC Asset
Management Industry
A
diversified asset management industry has emerged in the GCC over the last decade, according to a study conducted by Markab Advisory and sponsored by Qatar Financial Centre Authority. The study, Asset Management Industry in the GCC: Growth Dynamics and Contours of the Next Phase of Evolution, says that despite its youth, and especially in the aftermath of the financial crisis, the industry has shown signs of maturity and consolidation. It has tremendous potential to graduate to the next level of sophistication. Private equity (PE), rather than mutual funds, will be the main arbiter of growth of the region’s asset management industry, says the study, which explores the growth and dynamics of the regional asset management industry and highlights the role that the industry can play in improving the global competitiveness of the GCC region. The Study has assessed the new factors shaping the next phase of regional economic growth and their impact on the future growth and evolution of the asset management industry in the GCC region. It discusses specific dynamics of the industry, unique growth drivers and particular challenges and weaknesses that will likely affect the growth of the industry. Against the backdrop of the global financial crisis, the Study takes a closer look at the GCC region with an indepth coverage of key asset classes and investor groups. The Study also presents a blue print for the future growth of the industry and identifies areas of focus for regulators and policy makers. The key findings of the study include:
• Although the mutual funds industry has registered phenomenal growth during the last decade, future growth 26
Gulf Insider January 2013
of mutual funds will be predicated on depth and diversity of the capital markets. Limiting factors, which include a restricted number of actively traded stocks, concentration of market values in a few sectors and mutual fund investors’ home bias, might hinder growth in mutual funds’ market penetration, which stands at less than 3% of the aggregate market capitalisation;
The Study has assessed the new factors shaping the next phase of regional economic growth and their impact on the future growth. • In the past ten years or so, a quiet revolution has taken place in the PE sector in the GCC. Standing at US$ 15 billion (some estimates indicate up to US$ 18 billion), the industry is equal in size to the equity mutual funds industry (unlike developed countries where the PE industry is a fraction of the size of the mutual funds industry). Following its humble beginnings in the early 2000s, the industry has been through a boom and bust cycle in the last ten years. The industry today is leaner and stronger and is positioned to become a dominant contributor to the growth of the asset management industry over the next 4-5 years;
• Investor configuration is changing. International and regional institutional investors will be the main sources of capital for PE funds. Asian investors, particularly institutional investors from China, are more likely to consider PE investment platforms. Precedents have been set and more examples are likely to follow. The GCC’s Sovereign Wealth Funds will continue to remain internationally focused, but can play a key role in niche sectors, such as infrastructure funds. Family Groups and High Net Worth Individuals have been among the largest and most significant participants in the regional asset management industry. They will resume their strong role progressively as they iron out legacy issues and rebuild liquidity; • PE will possibly be the key asset class with the highest growth potential. Within this domain, growth capital, small and medium enterprises and infrastructure are the most attractive asset classes. Smaller funds sector specialization, investor activism and strong corporate governance will define the shape of the PE industry. Established players, especially those with successor funds, will continue to attract investors most; • Fixed income funds and Real Estate Investment Trusts are at very early stages of evolution and face specific challenges; • Islamic asset management is fast developing as a common thread among all asset classes. The GCC region is naturally positioned to take leadership in this space and become a global hub of Islamic asset management activities; • Regulators and policy makers in the region need to play a leading role in creating an enabling environment for the growth of the asset management industry. Critical areas of focus include reforming corporate and commercial laws, attracting foreign investors and fund managers, building asset management ecosystems, creating Shariah hubs, ensuring public sector commitment to indigenous asset management platforms, and building complementary propositions for the regional financial centres. GFI
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Report MENA
Regional Economic Outlook Growth spreads across MENA in 2012 despite the strain of historic transitions.
T
the International Monetary Fund (IMF) launched its Regional Economic Outlook Update for the Middle East North Africa, Afghanistan, and Pakistan region (MENAP). The Outlook, titled “Middle East and North Africa: Historic Transitions under Strain”, takes into consideration the near-term risks to the macroeconomic stability of the Arab countries which have increased due to a combination of political transition, pressing social demands, and an adverse external environment. While these risks were contained to some extent during 2011, faltering growth, rising unemployment and continued fiscal and external pressures, IMF expects 2012 to be an equally challenging year. According to the report, MENAP oil exporters benefited from high oil prices which shielded them from the impact of the Eurozone crisis and its amplifications. The GDP growth of these countries decreased in 2011 to 4% but is projected to increase back up to 5% in 2012. In 2011, the MENAP oil exporters’ combined external current account surplus almost doubled
28
Gulf Insider January 2013
IMF expects the average real GDP growth for MENAP oil importers to increase slightly to 2.7% in 2012.
Feature MENA Report
As stability returned to other oil producing countries, the GCC will return to normal oil production levels and its GDP growth will settle around 5.3%.
• GDP growth of regional oil exporters expected to pick up in 2012 to almost 5% after recording 4% in 2011 • GCC continues to be regional growth driver with GDP growth projected at 5.3% in 2012 • Average GDP growth of regional oil importers expected to recover to below 2.7% in 2012, from 2.2% in 2011 • The financial support of the international community is critical for regional oil importers
approaching US$400 billion. Continued government spending due to intensified social demands and higher oil prices, will support to the non-oil sector, which is projected to grow at 4.5% in 2012. As their oil production increased in 2011 to compensate for oil supply decreases, the GCC countries’ GDP growth reached 8% last year. As stability returned to other oil producing countries, the GCC will return to normal oil production levels and its GDP growth will settle around 5.3%. Masood Ahmed, Director of the IMF’s Middle East and Central Asia Department, said: “Middle East oil exporters are benefitting from high oil prices, and we expect GDP growth to strengthen and become more broad-based this year. Nonetheless, fiscal vulnerabilities to falling oil prices have increased, and structural challenges remain, such as the need to create jobs for growing workingage populations and to further diversify the economies.” Dr Nasser Saidi, Chief Economist at DIFC commented: “As the transitions taking place across the region continue, and with the depressed global environment, it is inevitable that economic growth will be impacted, even though the GCC and other oil exporters are continuing to benefit from high oil prices. Job creation is the clear economic and social policy priority and highlights the importance of having an inclusive agenda that supports and accelerates the growth of the private sector, notably SMEs and family businesses. It also highlights the need for the effective mobilisation of funds and the channelling of resources to meet the growing infrastructure and capital investment needs of the region. A cooperative and formal financing solution is required and I believe it is an opportune time to set up
a dedicated Arab bank for reconstruction and development that could tailor solutions to the needs of individual nations in MENA, while catering for regional infrastructure projects that would support greater regional economic and financial integration.” 2011 was a difficult year for MENAP oil importers . The social unrest and resulting decline in tourism and investment as well as higher energy prices and slower global growth, weakened economic activity and resulted in a decline in its growth to 2.2%. With lingering concern over social instability and policy uncertainty, tourism an important source of jobs and foreign exchange receipts and private investment are likely to slowly recover this year. IMF expects the average real GDP growth for MENAP oil importers to increase slightly to 2.7% in 2012 with the main near-term downside risk being a potential large increase in oil prices which would impact these countries’ external balances. The IMF report also highlights the gross external and fiscal financing needs of MENA oil importers, which are projected at about US$90 billion and US$100 billion in 2012 and 2013 respectively, and the consequent need of a timely official financing. Mr Ahmed added; “2012 is another challenging year for many oil-importing countries in the region, and in particular for those undergoing transition. Growth is faltering and unemployment is on the rise, and many countries are faced with diminished policy space, having eaten into their foreign exchange and fiscal buffers in 2011. A joint and sustained effort is needed to help these countries navigate through this challenging period and set out an economic vision that is fair and inclusive.” GFI
Gulf Insider January 2013
29
Feature Secret Justice
Suffering in Silence Robbed and Ruined by a UK Court on CIA Orders ... and We Couldn’t Tell a Soul: A Chilling Story of Secret Justice.
D
espite the years of cruel reality, Margaret Bentham still seemed incredulous as she told her story, a story she once thought she could never share. But with quiet dignity she summed up the ordeal she and her businessman husband Stuart, a former British Army officer, have endured at the hands of the CIA. ‘We were robbed of a business worth millions,’ she said. ‘We were plunged into
30
Gulf Insider January 2013
financial ruin. But the worst thing was, not only were we deprived of justice, we couldn’t tell a soul.’ In an exclusive interview, Mrs Bentham told Britain’s Mail on Sunday how the CIA decided a civil court case about the Afghan mobile phone company he had helped to establish was too ‘sensitive’ to air in public. It used draconian legal powers to shut down the case – so destroying not only the Benthams’ livelihood, but any
By David Rose
prospect of redress after Mr Bentham alleged the company had been stolen from him. ‘We lost our £5million flat in Belgravia,’ said Mrs Bentham, 50. ‘We’d had a thriving telecoms business in London employing 23 people, and we lost that too. The gagging order imposed by a US court meant I couldn’t even tell our friends what was wrong or Stuart could have gone to prison. It was absolutely
Secret Justice Feature
Mr Bayat had the connections to acquire the licence to build Afghanistan’s first mobile phone, internet and international call system
Kafkaesque.’ Even now, Mr Bentham could be extradited and jailed if he gave an interview. The Benthams’ nightmare was made possible by a US legal procedure known as the State Secrets Privilege. But an alarmingly similar system will soon exist in Britain, if the governing coalition’s current Green Paper on Justice and Security becomes law. Such secret judgments have never been permitted in Britain. Under the Green Paper, they would become routine. The background to the alleged fraud against Mr Bentham, 63, and his business partner Lord Michael Cecil, 52, a brother of the Marquess of Salisbury, goes back to 1998, when they went into business with Ehsanollah Bayat, a Kabulborn American citizen on friendly terms with the highest echelons of the Taliban government and particularly its leader, Mullah Omar. Mr Bayat had the connections to acquire the licence to build Afghanistan’s first mobile phone, internet and international call system – Mr Bentham and Lord Michael the business expertise. But Mr Bayat had a secret: he was an informant for the FBI, the main US domestic counter- terrorism force. The link made an opening for Operation Foxden, a scheme the FBI planned to run jointly with the National Security Agency (NSA), the US electronic eavesdropping organisation. The NSA offered $30 million and technical assistance. The plan was to build extra circuits into all the equipment installed, enabling the US to ‘record or listen live to every single landline and mobile phone call in Afghanistan’ and ‘monitor the telephone gateways channelling international calls in and out of the country – gateways already being used by Bin Laden, Mullah Omar and their associates, thanks to the satellite phones given by Mr Bayat to Taliban ministers as gifts’. By the beginning of 2000, after all the main partners had made several visits to Afghanistan, the project was at an advanced stage, and could have been fully functional within months – 18 months or more before 9/11. But just as the project seemed to be
on the brink of coming to fruition, it was wrecked by a ‘turf war’ between the FBI and NSA on one side, and the CIA, which wanted to control it. The consequence, as the agencies bickered in Washington, was that nothing happened for 20 months. By the time these bureaucratic obstacles had been cleared, it was too late. A meeting to get the scheme going again, attended by Mr Bentham and Lord Michael, took place in New York in a hotel overlooking the World Trade Centre on September 8, 2001 – three days before the attacks. Mr Davis commented: ‘Of course, we cannot say for certain that if US intelligence agencies had managed to tap the Afghan phone network sooner, we would have intercepted evidence in time to stop the 9/11 attacks, but it seems quite likely.’ After 9/11, the Taliban were toppled by US-led forces. Very soon after that, Lord Michael, Mr Bentham and their colleagues, working with Mr Bayat’s company Telephone Systems International (TSI), installed the very network that had been planned two years earlier. The Britons ordered and paid for most of the equipment and ran the project out of London. Once operational in April 2002, the firm became a licence to print money and is now said to be worth in excess of US$ 1 billion. Official US documents, signed by Mr Bayat in May 2002, state that Mr Bentham and Lord Michael each were entitled to 15 per cent of the shares: their holdings, in other words, should now each be worth more than $160 million. Instead, said Mrs Bentham, she and her husband are in straitened circumstances, and live in a rented house, dependent for holidays on hospitable friends. In the autumn of 2002, having offered to buy out Mr Bentham and Lord Michael for a ‘derisory’ sum that did not even cover the cost of the equipment they bought, Mr Bayat sued them for ‘deceit and conspiracy’, and, simultaneously, simply denied they had any legal entitlement to shares in TSI. They had copious documentation, and, their lawyers believed, a cast-iron case. But the US intelligence agencies
Gulf Insider January 2013
31
Feature Secret Justice
Partners: Mr Bentham, left, Mr Bayat, centre, and Lord Michael, far right in Taliban-ruled Kabul in 1998
feared the consequences if the truth about their infighting emerged and they were determined to stop that truth from emerging. First, they offered Bayat $1 million for his legal fight – part of a more general plan to exclude British citizens and British agencies from the ongoing phone intelligence operation. Then, when the Britons’ lawyers refused to back down, ‘CIA officers threatened them, warning the whole case would be shut down if they continued’. Finally, in November 2004, came the use of the State Secrets Privilege. The effect was not only to close down the case immediately, but to expunge all trace from court records. Lord Michael and Mr Bentham were subject to a gagging order so severe that when they tried to reopen the case in London, they were forbidden on pain of contempt of court from discussing any aspect of the intelligence background with their own lawyers. ‘The State Secrets Privilege meant that the US agencies were restricting what could be said in court in England,’ 32
Gulf Insider January 2013
Mrs Bentham said. ‘I couldn’t speak to friends, and I felt pretty sure our phone calls and emails were being monitored. Meanwhile, legal fees meant we were facing a colossal drain on our cash. Imagine: you have to sell your home, but you can’t tell anyone why. It’s only now, after the parliamentary debate, that at last people know.’ The worst moment, she recalled, was when the State Secrets Privilege was deployed. ‘They showed the judge some kind of statement that we couldn’t see, and he shut down the case next day for reasons we weren’t allowed to read. And that’s the kind of thing that’s going to happen here if the Green Paper becomes law.’ Later, she said, the Benthams’ American lawyers asked a US judge whether their British lawyers could see the secret judgment and gagging order in strict confidentiality, so that at least they could advise them whether they should try to pursue the case in London. The judge refused. They also tried to get the State
The plan was to build extra circuits into all the equipment installed, enabling the US to ‘record or listen live to every single landline and mobile phone call in Afghanistan’ Secrets Privilege reversed in a federal US appeals court. They lost again – and the appeal court’s 17-page decision is also strictly secret. Mrs Bentham said: ‘The lesson is that the US legal system is perfectly willing to condone the theft of our assets. What gets me is that one of the main reasons the British Government has justified the Green Paper is to protect American secrets.’ GFI
Rental Index Real Estate
WORLD CITY
RESIDENTIAL MARKETS Capital growth cannot outpace rental growth indefinitely In world city residential markets.
S
lowing capital growth in the world’s leading residential city markets during last year and the first half of this year have allowed rents to catch up. Consequently, yields have been pushed out. As buyers’ appetite for risk slowed against the backdrop of global economic uncertainty, rental growth exceeded capital growth in many cases. Average growth across the Savills World Cities rental index averaged 4.1% in the year to June 2012, compared to 2.1% capital value growth putting average yields at 4.4%. “The top world cities are continuing to attract people to live and work and, even if investor and owner-occupier appetite falters for a period, incomers will still need accommodation and will continue to become tenants,” says Yolande Barnes, director of Savills Global Research. “The fundamentals of demand for accommodation remain strong and the outlook for the rental market is positive across the index.” New York, ranked number 6 in terms of capital value growth, dominates the rental yield table, grossing 6.9% by mid 2012, way out ahead of bottom placed Shanghai, with an average yield of just 2.4%. “New York’s market illustrates the permanent tension between rents and capital values,” says Barnes. “There comes a point when high yields become a compelling ‘buy’ signal. New York seems at or close to that tipping point.”
“By contrast, capital value growth cannot outpace underlying rental demand forever, and rents eventually catch up as incomers flood into the high demand world cities. In Mumbai and Shanghai landlords are looking to push up rents as capital value growth falters, driven by an inevitable investor desire to boost income returns after a sustained period where capital growth has hugely outpaced rental growth.” This trend has improved Shanghai’s investment fundamentals, Barnes believes, but there has been a huge gap between rental growth and capital value growth over the past five and a half years. Rents have risen by an average of just 10.3% while capital values have risen 137.3% due to investor speculation
in real estate price growth rather than income creation strategies. This is the most extreme polarisation of rents and values in any world city market. GFI Notes on the index: The Savills World Cities Index differs from other international real estate indices in that it measures not just the prime markets of each city, but takes account of the mainstream by measuring a basket of properties – dubbed the ‘Savills Executive Unit’ or SEU – to give the truest possible indication of all market price movements on a like-for like basis. Importantly, it has been designed to allow international audiences to compare the cost of accommodating a core business team in each city.
World Cities ranked by Gross Yield June 2012 City
Gross Yield June 2012
Rent change Rent change Jan-June 2012 June-Dec 2011
New York 6.9%
Rent change since June 2005
1.8%
6.2%
12.7%
Moscow 5.6% 5.4%
3.7%
56.0%
London 5.0%
14.7%
1.7%
0.1%
Sydney 4.9% 3.35%
3.4%
27.9%
Paris 4.8% 0.0%
4.9%
26.2%
Tokyo 4.1% 0.0%
-1.1% -12.1%
Singapore 4.1% -1.0%
4.2%
Mumbai 3.3% 5.0%
0.0%
77.8%
Hong Kong 2.9% -0.1%
-2.5%
24.5%
Shanghai 2.4%
2.2%
10.3%
1.9%
88.7%
Source: Savills Global Research World Cities Index Gulf Insider January 2013
33
Afghanistan True Lies
I
spent last year in Afghanistan, visiting and talking with US troops and their Afghan partners. My duties with the Army’s Rapid Equipping Force took me into every significant area where our soldiers engage the enemy. Over the course of 12 months, I covered more than 9,000 miles and talked, travelled and patrolled with troops in Kandahar, Kunar, Ghazni, Khost, Paktika, Kunduz, Balkh, Nangarhar and other provinces. What I saw bore no resemblance to rosy official statements by US military leaders about conditions on the ground. Entering this deployment, I was sincerely hoping to learn that the claims were true: that conditions in Afghanistan were improving, that the local government and military were progressing toward self-sufficiency. I did not need to witness dramatic improvements to be reassured, but merely hoped to see evidence of positive trends, to see companies or battalions produce even minimal but sustainable progress.
We watched as two Afghan men emerged, mounted a motorcycle and began moving toward the Afghan policemen in their vehicles. Instead, I witnessed the absence of success on virtually every level. My arrival in the country in late 2010 marked the start of my fourth combat deployment, and my second in Afghanistan. A Regular Army officer in the Armour Branch, I served in Operation Desert Storm, in Afghanistan in 2005-06
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Truth, Lies and Afghanistan By Lt. Col. Daniel L. Davis (US Army)
and in Iraq in 2008-09. As a representative for the Rapid Equipping Force, I set out to talk to our troops about their needs and their circumstances. Along the way, I conducted mounted and dismounted combat patrols, spending time with conventional and Special Forces troops. I interviewed or had conversations with more than 250 soldiers in the field, from the lowest-ranking 19-year-old private to division commanders and staff members at every echelon. I spoke at length with Afghan security officials, Afghan civilians and a few village elders. I saw the incredible difficulties any military force would have to pacify even a single area of any of those provinces; I heard many stories of how insurgents controlled virtually every piece of land beyond eyeshot of a US or International Security Assistance Force (ISAF) base. I saw little to no evidence the local
governments were able to provide for the basic needs of the people. Some of the Afghan civilians I talked with said the people didn’t want to be connected to a predatory or incapable local government. From time to time, I observed Afghan Security forces collude with the insurgency. And I can relate a few representative experiences, of the kind that I observed all over the country. In June, I was in the Zharay district of Kandahar province, returning to a base from a dismounted patrol. Gunshots were audible as the Taliban attacked a US checkpoint about one mile away. As I entered the unit’s command post, the commander and his staff were watching a live video feed of the battle. Two ANP vehicles were blocking the main road leading to the site of the attack. The fire was coming from behind a haystack. We watched as two Afghan
True Lies Afghanistan
Some of the Afghan civilians I talked with said the people didn’t want to be connected to a predatory or incapable local government. men emerged, mounted a motorcycle and began moving toward the Afghan policemen in their vehicles. The US commander turned around and told the Afghan radio operator to make sure the policemen halted the men. The radio operator shouted into the radio repeatedly, but got no answer. On the screen, we watched as the two men slowly motored past the ANP vehicles. The policemen neither got out to stop the two men nor answered the radio - until the motorcycle was out of sight. To a man, the US officers in that unit told me they had nothing but contempt for the Afghan troops in their area - and that was before the above incident occurred. In August, I went on a dismounted patrol with troops in the Panjwai district of Kandahar province. Several troops from the unit had recently been killed in
action, one of whom was a very popular and experienced soldier. One of the unit’s senior officers rhetorically asked me, “How do I look these men in the eye and ask them to go out day after day on these missions? What’s harder: How do I look [my soldier’s] wife in the eye when I get back and tell her that her husband died for something meaningful? How do I do that?” One of the senior enlisted leaders added, “Guys are saying, ‘I hope I live so I can at least get home to R&R leave before I get it,’ or ‘I hope I only lose a foot.’ Sometimes they even say which limb it might be: ‘Maybe it’ll only be my left foot.’ They don’t have a lot of confidence that the leadership two levels up really understands what they’re living here, what the situation really is.” On 11th September, the 10th anniversary of the infamous attack on the US, I visited another unit in Kunar
province, this one near the town of Asmar. I talked with the local official who served as the cultural adviser to the US commander. Here’s how the conversation went: Davis: “Here you have many units of the Afghan National Security Forces [ANSF]. Will they be able to hold out against the Taliban when US troops leave this area?” Adviser: “No. They are definitely not capable. Already all across this region [many elements of] the security forces have made deals with the Taliban. [The ANSF] won’t shoot at the Taliban, and the Taliban won’t shoot them. “Also, when a Taliban member is arrested, he is soon released with no action taken against him. So when the Taliban returns [when the Americans leave after 2014], so too go the jobs, especially for everyone like me who has worked with the coalition. In all of the places I visited, the tactical situation was bad to abysmal. If the events I have described - and many, many more I could mention - had been in the first year of war, or even the third or fourth, one might be willing to believe that Afghanistan was just a hard fight, and we should stick it out. Yet these incidents all happened in the 10th year of war. How many more men must die in support of a mission that is not succeeding and behind an array of more than seven years of optimistic statements by US senior leaders in Afghanistan? No one expects our leaders to always have a successful plan. But we do expect and the men who do the living, fighting and dying deserve - to have our leaders tell us the truth about what’s going on. Naturally, I am not authorised to divulge classified material to the public. But I am legally able to share it with members of Congress. I have accordingly provided a much fuller accounting in a classified report to several members of Congress, both Democrats and Republicans, senators and House members. GFI
A non-classified version is available at www.afghanreport.com. [Editor’s note: At press time, US Army public affairs had not yet ruled on whether Davis could post this longer version.]
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Dubai - UAE
Dubai remains
“most attractive destination� for private investors in GCC
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Real Estate Dubai
Dubai emerged as the top investment target for both investors from the UAE and those from all other cities.
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luttons, the real estate specialist, has released the findings of its first Middle East Private Capital Survey. This report set out to examine investor sentiment within the Arabian Gulf region, specifically intra regional investor sentiment, attitude and behaviour of high net worth individuals (HNWI) in Abu Dhabi, Dubai, Manama, Muscat and Riyadh. The report found that Dubai remains the most attractive destination to private investors within the GCC region, with Riyadh and Doha emerging as strong secondary and tertiary target locations, respectively. Despite Eurozone uncertainty dragging down the performance of the broader global economy, the Middle East is the only global region to have recorded positive growth in total HNWI wealth from 2010 to date. This corresponds with IMF predictions of an average GDP growth of 3.4% across the Gulf Cooperation Council next year and expectations for Gulf States to outperform major western economies. It is therefore unsurprising that the number of HNWI looking to invest regionally is 60% higher than in 2011, and that 80% of those surveyed are very likely to make an investment in the region during 2013. Dubai emerged as the top investment target for both investors from the UAE and those from all other cities surveyed, with 80% of HNWI very likely to make an investment in Dubai during 2013. Within Dubai itself, HNWI interests are split across several sectors: residential (40%), hotel and leisure (40%) and retail and malls (20%). Typical budgets for Abu Dhabi’s HNWI seeking residential assets in Dubai range from AED 50 million to AED 80 million, with multi-storey G+8 to G+12 tenanted residential buildings which contain some mixed-use and good covenants, topping wish lists. Aside from Dubai, Saudi Arabia’s residential market (20%) and Doha’s office (7.5%), hotel and leisure sectors (7.5%) remain high on the lists of Abu Dhabi’s HNWI. For investors based in the Bahraini capital, Riyadh’s residential market (15%) and Doha’s residential, office and hotel and leisure
sectors (5% each) are also of high importance. For HNWI from Muscat industrial assets in Riyadh (20%) and Doha’s hotel and leisure sector (15%) come second to Dubai. After Dubai, the Kingdom of Saudi Arabia emerged as the next most desirable investment destination for the region’s HNWI, with those in Abu Dhabi (20%) and Manama (15%) stating that residential property in Riyadh was high up on their target lists, while the Saudi capital’s industrial assets topped Muscat’s HNWI interests (20%). 60% of Riyadh-based investors identified Dubai’s residential, office and hotel and leisure sectors as sought after asset classes. The abolition of all restrictions on foreign property ownership in May 2012 has helped to propel Istanbul on to the radars of the region’s HNWI, with 60% of those surveyed naming the Turkish capital as an emerging destination of high interest. Doha, which was awarded the right to host FIFA’s World Cup 2022, is also experiencing an upturn in investor interest as the country plans to undertake up to US$150 bn of infrastructure development over the next 10 years in the run up to the event. Specifically, the Qatari capital’s residential and hotel and leisure sectors are of particular interest for the region’s HNWI according to the survey. Ian Gladwin, CEO at Cluttons, notes: “Dubai’s improved attractiveness, as a result of the regional geopolitical tensions, coupled with the emirate’s economic recovery has in effect created a ‘perfect storm’, which Dubai is benefitting from tremendously.” He adds: “It is clear that real estate assets continue to take precedence when it comes to regional investment activity. That said, given the ever changing economic climate, coupled with the long lasting effects of the ‘great recession’, a clear strategy focussed on building diverse asset portfolios within the Middle East is beginning to emerge, with the region’s stock markets, alternative investment funds and gold helping to balance out investors’ portfolios.” GFI
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Tehran Loopholes
Tehran, Lipstick and Loopholes I
was born in this place, I know Tehran, I’ve got friends here. Soon I’ll have to head back to Paris, where I live. My return ticket, with Iran Air, is ready. One slight concern, nothing really: I need to renew my Iranian passport. To renew my passport I have to get, amongst other things, Islamic-style ID photos: no hair appearing beneath the scarf, no visible make-up, no smile. Basically you have to produce a picture of a woman looking straight at the lens when, in her day-to-day life, she isn’t allowed to look men in the eye. In order to compose a photograph like this - and it really is a composition, not a snapshot - I absolutely have to find a professional photographer. They’re used to this sort of exercise: they have at their disposal a range of thick plain scarves,
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make-up remover for eyes and lips, and a long coat with a collar that buttons right up, in other words all the paraphernalia needed to transform an ordinary woman - whatever length her hair, however much make-up she’s wearing, and whether she’s wearing a print dress or jeans and a t-shirt - into an Islamic woman. The way an Islamic woman looks has been carefully thought out. It means something: the veil covering her head represents martyrs’ blood shed during the Iran-Iraq war (more than a million dead on the Iranian side); the buttons on her collar, pressing on her throat and choking her slightly, are an allusion to the healthy state of her husband’s or brother’s honour, for the simple reason that those buttons ensure no one can see her female flesh.
By Mrs Nahal Tajadod
People who grow rich in Tehran eagerly spend their money on the beaches of Dubai. I go out and, after a few minutes’ hesitant walk along collapsing pavements punctuated with electrical cables, I catch sight of the two photo studios. They’re not far apart. I stop in front of the Ecbatana studio’s window display and read the words written on the glass: WE CAN FILM AND PHOTOGRAPH ALL YOUR SPECIAL OCCASIONS. As I glance at the photos dressing the shop front, I see a bridegroom in profile,
Loopholes Tehran
with slicked back hair. He is holding a bouquet of white roses towards an absent bride. You see, current law forbids displaying photos of women in any kind of shop window. In the next picture another groom is opening the door of a Mercedes decorated with flowers and ribbons, to reveal a silhouette that I can only assume is his betrothed although all I can make out are her feet, just touching the ground and crammed into tight shoes with stiletto heels. I spend a long time looking at this picture which strikes me as slightly subversive. The Islamic powers actually forbid women wearing high heels because the clicking of a woman’s heels as she walks could always arouse a good Muslim, therefore provoking dangerous sensations. For a moment I picture Wall Street with its hundreds of women in court shoes running in every direction, blissfully unaware that they are unleashing better emotions in New York brokers than Viagra can produce. The invisible bride must have been given them - these abbreviated shoes - as a present, probably from her future sister-in-law who’d just got back from a trip to Dubai or somewhere else. Ah, Dubai and the Iranian middle class! For the last fifteen years all that Iranians can dream about is spending long weekends in the highly concreted paradise that is Dubai. Getting there doesn’t require endless insurmountable procedures at the consulate to obtain a visa, or knowledge of English, German or Swedish. Most of the shops are run by fellow-countrymen, and Persian is spoken and heard everywhere. People who grow rich in Tehran eagerly spend their money on the beaches of Dubai, in their swimming costumes, with a glass of whisky in their hand and a horizon full of high-rise buildings behind them. Here their lucky wives can go out without Islamic scarves, aerating their fake blonde hair to the whims of the wind, the hot wind of the Arabian desert, even strolling about the foyers of large hotels in shorts and blouses, and bringing home gifts. I step into the shop where, as everywhere, portraits of the Ayatollah Khomeyni and the current Supreme Guide Ayatollah Khameneyi have pride of place. I explain that I’ve come for passport photos. ‘Very good,’ he says, ‘this way.’
The photographer points at a beige coat and advises me to put it on because my blouse strikes him as too creased. I restrain myself from telling him about Issey Miyake’s famous pleats and do as I’m told. As I put the coat on I try not to inhale the smell that I imagine is impregnated in it, the smell of shanbelileh, a herb found exclusively in Iran which, when used in cooking, only leaves the eater’s body after days and days of washing. Half of Iran is steeped in this smell, the other half in the reek of petrol. Since childhood I haven’t been able to bear the smell of shanbelileh. I put the coat on and, just as I feared, recognise exhalations of the wretched plant. I throw the garment down on a chair and explain to the photographer that my ruffled blouse won’t ‘ruffle’ the authorities at the Ministry of the Interior that I’d prefer
Touching a woman’s hand could arouse a man, making him completely lose control and leading away from the path of righteousness. to stick to it and he can start getting his equipment ready. ‘Very well,’ he says. He leads me to the studio, adjusts the height of the seat, goes round behind the camera, comes back out and, with a finger that smells of cigarettes, rubs away the subtle traces of my lipstick and zips my blouse up further. Then he holds my chin still and runs his hand under my scarf to tuck away a rebellious lock of hair. What sort of verdict would a doctor of religion reach confronted with this situation: a woman alone with a stranger in a dark room, letting him stroke her lips, her neck, her chin and her hair without saying a word? ‘Hell in the next world, prison in this one,’ the learned soul would reply. I look at the lens without smiling and hold my breath. He takes the picture.
My mobile suddenly rings. A call from Paris. I answer in French and now, for the first time, I make an impression. All of a sudden they stop using the informal form of address. After a moment’s silence the salesman and the photographer, Hassan and Morad (those are the names they call each other), offer me a chair and a cup of tea. I want to pay and leave, but they insist. In the end the two men confide in me with their hopes: what they really want is to go somewhere - anywhere in Europe. In order to achieve this they have to fill in a request for a Schengen visa. Hassan opens his briefcase and hands me two forms in Swedish. I tell them I don’t speak Swedish, can’t read the form and am even less equipped to fill it in. Sweden is the chosen country for Iranian emigrants because Iranians who refuse to leave Sweden when their visas run out are almost immediately put up in prefabricated houses with a view of the sea, or at least a lake. The Swedish government also provides them with a free telephone card to call home as often as they like. A special card opens the doors to Ikea for them so they can decorate their temporary houses to their own liking, and a psychologist sees them regularly, free of charge, to avoid any nostalgia spoiling their time in Scandinavia. Acting on the advice of informed friends, an ageing Iranian woman from a modest background once told the psychologist that what she missed most in Sweden was her car and chauffeur. The very next day a Saab driven by Karl, a blond, blue-eyed chauffeur, was put at her disposal for two hours a day, at the government’s expense. ‘Write in French, it doesn’t matter,’ they reply. I pick up my pen and fill in the boxes for their names. I ask them for their dates of birth using Christian dating. Morad runs his hands through his long hair in a gesture that is clearly quite a habit and admits that he doesn’t know it. Neither does Hassan. They don’t have their passports on them. They announce that they will bring them to my house that evening with the photos. ‘I have to go out with my husband this evening,’ I say. I feel they’re on to my subterfuge straight away because they point out that they could leave the
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Tehran Loopholes
package with a neighbour or with the caretaker in my building. ‘You could just fill in the forms tomorrow morning and slip them under the shop door. Whenever suits you.’ Now I’m feeling reassured: I won’t have to see them again. I agree and take the forms. ‘How much do I owe you?’ I eventually ask, purse in hand. Speaking in unison, they refuse any payment point blank. When I insist, they decline my offer again: ‘No, no, you don’t owe us anything.’ I persevere. Still in vain. In the end I give in. I know that there are limits even to Iranian tard, the affectation of refusing out of politeness the things you most want: at a dinner party, for example, when someone offers you another helping and you’re dying to have some, you say no, no thank you and no again. I understand that I mustn’t press my point and that, in their way, the photographers are sincere in their refusal. ‘Why do you want to leave Iran?’ I ask before going out. Once again Morad sweeps his hair off his forehead with both hands, then without raising his voice, says: ‘Iran is a cage.’
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I leave and we do not shake hands, a gesture outlawed by the Revolution: since the Islamic Republic was instated it has been forbidden and seen as contemptible because touching a woman’s hand could arouse a man, making him completely lose control and leading away from the path of righteousness. Like all Iranian women, I took a long time learning not to shake men’s hands. Like them, I initially confined this ban to men in the outside world, in administrative roles, at universities or hospitals. But it was not long before doubts crept in. In a family gathering, for example, should I shake hands with strangers invited by my parents? One childhood friend descended from the Qadjars - the royal dynasty before the Pahlavis - suddenly became a strict Muslim and stopped shaking women by the hand. I wasn’t up to speed on this transformation and when I bumped into him at my aunt’s house and started towards him with open arms to kiss him as I always had, he hastily backed away. At the time I thought that, having married a practicing Muslim, he wanted to avoid kissing any other woman but when I held
Like all Iranian women, I took a long time learning not to shake men’s hands. out my hand to him he backed away even further as if in panic. And there’s more. The new laws forbid not only contact with a stranger, a na mahram, a man who is not part of the immediate family - father, brother or son - but also forbids looking him in the eye. I was used to smiling at any man, shaking his hand, possibly even kissing him on the cheek and looking him in the eye but then, like all other women and absolutely overnight, I had to restrain myself: no smiling, no proffering a hand or a cheek and (hardest of all) no looking at the person I was talking to. Learning to look away - who’d have thought! GFI
This is an edited extract from Tehran, Lipstick and Loopholes, by Nahal Tajadod. Available from Amazon.com
MEMA Awards Feature
Bentley Continental GT V8, “Premium Luxury Coupe” for 2012
SG Hyundai Veloster, “Best Hatchback” for 2012
Middle East Motor Awards 2012
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he Middle East Motor Awards (MEMA), one of the Middle East automotive industry’s most prestigious awards was held at Sharjah. It was an initiative of the Expo Centre Sharjah with support from the Sharjah Chamber of Commerce & Industry. A panel of 17 distinguished & expert automotive journalists were the judges. GFI
Some MEMA Award Winners Bentley Continental GT V8 -
“Premium Luxury Coupe”
McLaren Automotive - “Car of the Year”, for its debut model - 12C & “Best Super Car SG Hyundai – “Best Hatchback” for Veloster Porshe 911 Carrera S Coupe “Best Premium Sports Coupe”, Porshe 911 Carrera S Cabriolet – “Best Premium Sports Convertible” and Porshe Boxter – “Best Sports Convertible’ Mercedes Benz ML 350 “Best Premium Large SUV” Mercedes Benz ML63 AMG “Best Performace SUV”
Mr George Willis, Managing Director of Porsche Middle East with his awards
Mr Mark Harrison, Regional Director of McLaren Middle East & Africa with his awards
Ford Explorer bags the ‘Best Mid-sized SUV’ title for 2012
Mercedes Benz GLK “Best Premium Mid-size SUV”
Accolades for Bentley, “Premium Luxury Coupe” of the year Gulf Insider January 2013
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Cars Cadillac
New 2013 Cadillac ATS T Nick Cooksey tests the latest Cadillac at the Yas Marina Circuit. he Cadillac ATS is an all new entry into the market and has been designed from scratch. The guiding principle while designing it was to create a car that is ‘nimble, quick and fun’ and in fairness to Cadillac they have achieved it. In designing this all new car, Cadillac looked at the highly successful BMW 3 Series and the company confesses that the 3 series was in many ways their guiding light in the ATS development. This new car is the lightest in its segment. It may be a small Cadi, but still it’s a Cadillac! The car comes in three versions and the two that I tested were 2.5 litre and 3.6 litre engine versions which are expected to be sold in Bahrain in price ranges of BD13, 500 and BD17, 500 respectively. I can confirm that I considered both cars to be great and particularly the 3.6 litre version that pumps out an impressive 321 Bhp which propels the car from 0-100 kms/h in under 5.5 seconds. I give full credit to Cadillac for arranging journalists to test drive their new car on a race circuit rather than public highways where speed limits and
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other safety considerations such as oncoming traffic would prevent us from really exploring the capabilities of this machine. Infact Cadillac arranged for the motoring press to compete in ‘timed laps’ around the circuit and I’m pleased to report that yours truly came in with not only the fastest time but I was ahead of the journalist who came in second by a full 5.5 seconds (coincidentally the same time that it takes the car to do 0-100kms/h). I very much enjoyed driving this car! Despite its clear sporting aspirations and abilities it has a feeling of luxury as well as being filled with the latest technological innovations including MAGNETIC RIDE CONTROL - unique for this segment, BREMBO BRAKES, DRIVER SAFETY ALERT SEAT and REVERSE TECHNOLOGY that will stop the car from being reversed into inanimate objects such as a lamp post or perhaps a small child. Hurtling around the circuit, I also was aware of the car’s excellent 5050 weight distribution. Another feature I noticed was the change in the overall feel and performance of the car when activated onto sports mode. Okay, so
This new car is the lightest in its segment despite the fact that they’ve used premium materials. It may be a small Cadi, but still it’s a Cadillac!
most cars now have this option but in the case of the ATS it seemed to turn the machine into a completely different beast. It’s almost like having the choice of driving 2 different cars at the press of a button! The ATS is being noticed and has already won a number of prestigious awards. It’s a fun car for anybody who really loves driving. GFI
For a test drive contact National Motor Company at Tel: +973 17 457100 or visit the showroom at Sitra.
Jaguar XJ Cars
New 2013
Jaguar XJ
Nick Cooksey reviews the latest Jaguar XJ
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rive the new Jaguar XJ and you’re sure to turn a few heads around! The car competes with luxury cars of the likes of Audi A8 and Mercedes S-Class and is undoubtedly a great combination of class and comfort. The new Jag features an improved engine system and two additional gears. It comes in an all-wheel drive version as well. For me, the new Jag XJ is all about luxury. Fitted with a powerful 3.0 V6 engine which pumps out an impressive 335Bhp the car zooms from 0-100kph in just 5.7seconds. It further has an eight-speed automatic gear box which makes it a pleasure to drive on Bahrain’s highways. Bearing in mind that it is a bigsized luxury car its power and agility are very impressive. The new XJ has a standard Blind Spot Monitor which detects vehicles that may not be visible in the rear-view and side mirrors and an Automatic Cruise Control which helps to maintain safe distance between your vehicle and the one in front. The car has a luxurious and spacious interior. The satellite navigation system, should the driver desire is now also available in Arabic and offers fast access to data. An impressive 825-watt 20speaker system offers to make your music sound even better while you drive this luxury sedan. There is a rear-seat entertainment system as well and this includes two 8-inch screens, a portable touch screen controller and digital wireless headphones. You can also enjoy a great view from the glass roof; the dark tint and reflective coating offer maximum protection from sun’s heat – perfect for the hot summers in Bahrain. All said and done, I like the car! GFI
For a test drive call Tel: +973 1 770 7070 or visit the showroom at Sitra. Gulf Insider January 2013
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Feature Jerusalem
Revealed, Jerusalem
in All Its Terrible Beauty Charles Moore reviews Jerusalem: The Biography by Simon Sebag Montefiore.
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hen I first visited Jerusalem 30 years ago, I was shocked, like most people, by the disparity between the myth and the mess. The city which, of all places in the world, is most holy to most people, was a place of chaos and conflict, wire and roadblocks. I was there again last week, and the situation is little better. But when you come to think about it, why should this disparity be surprising? Religion expresses the difference between man’s reach and his grasp. It is about what can never, until the end of time, be resolved on Earth. So it would be absurd to expect a city on which a faith centres – let alone a city sacred to three faiths – to be all quiet and orderly like Canberra or The Hague. It will be a place whose meaning is too great to bear. And so it is perfectly logical to sing the Psalms in praise of Jerusalem – no other city has ever had such a songbook – and yet to see what Jesus means when he exclaims: “O Jerusalem, Jerusalem, which killest the prophets, and stonest them that are sent unto thee…” Some will reply that the history of Jerusalem is proof of the stupidity of human literal-mindedness: why cannot people see that “the city on a hill” which true religion seeks to build is only a spiritual and not a physical concept? Why fight over tunnels and mounds and
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narrow passageways? Why seek God in the barren rocks of Judea, and not in your heart? It is true that the story of Jerusalem gives as many examples of human cruelty, greed, hatred, pedantry, vanity, fanaticism and stark raving madness as the history of anything anywhere. But it is not possible for human beings who, whatever our spiritual condition, exist in this world in a particular time, place and bodily form, to make an absolute distinction between the physical and the metaphysical in the way we think about things. The three Abrahamic religions – Judaism, Christianity and Islam – are all inextricable mixtures of the historical, geographical and human with the ideal and the eternal. It matters that King David and Jesus Christ and Mohammed actually existed. It matters that Jews and Muslims do not eat pork, and that Christians’ most sacred rite involves bread and wine. It matters that Sinai and Galilee and Mecca and, above all, Jerusalem are real places. You cannot just decide to forget all these things, or to make them different. Religion is not an abstract theory, though abstract theories support it. It involves the story of people’s actual encounters with God. Simon Sebag Montefiore understands this. I thought at first that his lack of theological training would make this book superficial, but in fact it makes him
Jerusalem Feature
It is true that the story of Jerusalem gives as many examples of human cruelty, greed, hatred, pedantry, vanity, fanaticism and stark raving madness as the history of anything anywhere.
exceptionally sympathetic to the city whose story he tells. He is not trying to impose some theory upon it. He just wants to tell the tale of its terrible, beautiful, God-intoxicated, squalid (and surprisingly louche) life. I recommend, of course, that you read the book from cover to cover (635 pp). There is never a dull page. But a delightful way to get the flavour is simply to read the plentiful footnotes. Here is one: “The oldest pub in England, the Journey to Jerusalem, in Nottingham, dates from Richard’s Crusade.” Another, about the sheet used by the mayor to surrender Jerusalem to General Allenby: “The Arab boy holding the historic bedsheet stuck the broomstick into the ground, but it was purloined by the Swedish photographer. The British threatened to arrest him, at which he surrendered it to Allenby, who gave it to the Imperial War Museum, where it remains.” A third, about the bomb placed by Irgun Jewish terrorists in the King David Hotel in 1946: “One of those killed was Julius Jacobs, a cousin of the author and a British civil servant who happened to be Jewish.” And did you know, as another footnote explains, that the chasubles worn by Armenian priests in St James’s Cathedral, Jerusalem, are made from the tent in which Napoleon slept at Jaffa? Another curious but eloquent fact which the author supplies is that only one Palestinian Arab, the 18thcentury Bedouin Zahir al-Umar alZaydani, has ever ruled a substantial part of Palestine. Part of the skill of this book is that it enables the reader to feel sympathy with – and disgust at – all parties. Romans, Crusaders, Ottomans, Russians, Arabs, British, French, Americans, all get their moments of glory. His tale of the defeat of the old Jerusalem Palestinian families is particularly touching. This book does not make the reader take sides. It tells the tragic story of one of our great human non-sequiturs – the belief that, if we love something, we must possess it. GFI
Jerusalem: The Biography by Simon Sebag Montefiore is available from Amazon.com Gulf Insider January 2013
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Art Painting Bahrain
Inspired by the Outdoors Artist Bianca Danilov shares her art, a reflection of her love for nature.
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ianca Danilov is a Romanian artist and has been a painter of flowers, landscapes and non figurative ideas for over 20 years. She has had numerous exhibitions of her work in Romania, Italy, France, Saudi Arabia and Bahrain. An avid traveller, she says that her inspiration comes from landscapes and local architecture of the places she visits. Bianca has been a Bahraini resident for over two years now. “I feel that I have become a part of this wonderful country and I’m enjoying giving something back through my art,” she says. She had an art exhibition in June last year at Art Centre, near Bahrain National Museum. She will be participating in the upcoming Art Festival at Al A’ali Shopping Complex from 17th to 25th of January 2013. 46
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Painting Art
I feel that I have become a part of this wonderful country and I’m enjoying giving something back through my art. Bianca Bytes! Your message to aspirant artists in Bahrain: An artist is a creative specialist. A little imperfection gives grace to one’s work and a sense of freedom too. Don`t be afraid to try different types of media and exhibit your art for everyone to see! Your take on the Art scene in Bahrain: It has changed a lot especially during the last year. We’ve had a lot of different art programmes which have taken Bahrain’s art space to a whole new level.
Bianca can be contacted on bia_danilov@yahoo.com
You work with: I used to work only with watercolours and oil paints but I`ve recently discovered acrylics and I think it is a wonderful medium. GFI
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Technology Cameras
Tech picKs High-end Digital Cameras!
Pick your favourite from the best, must-have cameras to capture the most perfect moments. Sony NEX-5N
It’s all the performance of a DSLR in about half the size and half the weight. Get a perfectly pocket-sized 16.1MP interchangeable lens camera made for capturing beautiful stills on the go at up to 10 frames per second. Record in Full HD 1080/60p or 24p video, take astonishing pictures in low-light with the large Exmor™APS HD CMOS sensor or get beautiful panoramic shots in 2D or 3D. Put control at your fingertips with the highly responsive, conveniently tilt-able 3.0” Live View touch screen LCD.
Nikon D7000
The Nikon D7000 DSLR is impressive with a 16.2 MP CMOS sensor, six frames-persecond framing rate for up to 100 shots and full 1080p HD movies with full-time AF. With twin SD card slots, a 100 per cent viewfinder and bright 3-inch LCD for Live View operation, the camera is extremely versatile in the field. The magnesium alloy top and rear covers, special weather and dust seals plus 150,000 cycle-rated shutter system give it a pro feel.
Canon PowerShot S100
A sophisticated pocket-friendly point-and-shoot digital camera that has the power advanced users and enthusiasts need to create standout images. It incorporates the Canon HS SYSTEM, now featuring the new DIGIC 5 Image Processor for enhanced image quality and amazing low-light performance. The fast f/2.0 lens helps you tackle unfavourable lighting and capture breathtaking portraits with beautiful, shallow depth-offield. 12.1 Megapixels ensure crisp, richly detailed images, and a 5x Optical Zoom provides an excellent all-around range to shoot near or far.
Sony Cyber-shot DSC-RX100
Exquisite image quality and high-end handling are available for the first time in a truly compact camera. The Cyber-shot® RX100 features a massive 1” sensor and large-aperture F1.8 lens with integrated control ring for intuitive access to settings. Combined with supreme ISO sensitivity, you’ll enjoy richlydetailed results with remarkably low noise even in challenging lighting conditions. 48
Gulf Insider January 2013
Feature Lifestyle Luxury
Lifestyle Check out the latest fashion picks and add more glam to your style.
For Him…
Kenneth Cole New York Men’s Loafer Textured leather and a stylish diagonal seam add a modern touch to the Top Class EB loafer from Kenneth Cole New York.
Tommy Men’s Ribbon Inlay Belt This classic Tommy piece will be sure to add an preppy edge to your look. Thin men’s leather belt with Tommy branded ribboning. Leather. Imported.
Oakley Crosshair Sunglasses The durable ultra-light C-5 alloy frame is sleek and comfortable for all-day wear and the Three-Point fit holds lenses in precise optical alignment so your eyes dont feel stressed.
Metal Nature by Michael Soho Only the highest quality Austrian crystal was used to create these shimmering cufflinks.
For Her… Kate Spade New York Gold Coast-Georgina The leafy byways and Georgian gems of Chicago’s gold coast neighborhood were the inspiration behind the design of this crossquilted, pebbled leather handbag. It features a chain-embellished shoulder strap and pockets aplenty to keep things organized.
Jones New York Embellished Cardigan Bold jewels at the crew neck of Jones New York’s embellished cardigan offer an oldworld touch echoed by a bow in back. Available in classy gold lurex.
Anne Klein “Beacon” Drop Earrings The Anne Klein lifestyle appeals to a modern woman – with collections that are clean and polished. The brand carries on its heritage with designs that convey the look and feel of luxury.
Steve Madden Women’s Tarrah Pump Strappy and stylish, the Steve Madden Tarrrah pump goes even more glam with a golden platform and heel.
Gulf Insider January 2013
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Last word
Stop Worrying about Sales By Mike Brooks
S
omeone once said that worrying is praying for things you don’t want to happen. What a great saying, and, like all sayings, there’s a lot of truth in it. When you think about it, praying is when you concentrate on one thing and then you meditate or “pray” on it to the exclusion of all else. Usually, too, when you pray you put a lot of emotion into it and, of course, you have a lot of faith in what you are praying about. When you think about it, isn’t that what you do when you worry about something as well? Think about all the time you spend worrying about not making enough sales. Usually what happens is that you begin to concentrate on all the reasons why you’re not closing enough deals - the economy, lack of good leads, competition, deficiencies in your product or service, etc. - and then you start dwelling on all the negative consequences of not making sales - not having enough money to pay your bills, then losing your job, not finding another, etc... After a while, all these thoughts add up and before you know it you’ve invested a lot of energy and emotion into the horrible outcomes you’ve made up and within a few days or weeks you’ve built up enough evidence to support the faith you’ve developed that things just
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Gulf Insider January 2013
aren’t going to work out. When you look at it this way, worrying really is similar to praying for the things you don’t want to have happen! There is a better way. What all top producers do is have an unyielding faith that things are going to work out as long as they keep taking action, change their actions as their results dictate, and most of all, they know they must stay focused on the results they do want to happen. You see, they know that whatever they dwell on long enough eventually
Must stay focused on the results they do want to happen. manifests itself, and they know the key to their success starts with visualizing their goals as already having been accomplished, and they then just keep working towards them until they are. I found one of the best examples of this attitude in the book “Siddhartha” by Hermann Hesse. The book is about the Buddha and his journey to enlightenment. Before he became the Buddha, Siddhartha (as he was known) was successful at anything he undertook,
and his close friend, Govinda, once asked him how he was able to so easily manifest any result he set his mind to. Siddhartha’s answer was beautiful in its simplicity, and powerful in its wisdom. He simply responded, “It is easy. I simply do not allow any thought that is contrary to what I want to enter into my head..” That is the essence of spiritual power, and it is the antithesis of worrying. All strong leaders, top performers, and great achievers share that kind of attitude on one level or another. I suspect that the closer to that ideal you can get, the faster and easier your manifestations are. It’s simply the law of universe. The wonderful thing for all of us is that while we may not be able to act with the faith of the emerging Buddha at all times, we can recognize when we are worrying or being negative, and we all have the power to switch our thinking to the positive outcomes we know are possible. And the more we do this, the better actions we will take and the better results we will get. In this way life is a self-fulfilling prophesy and our destinies truly are in our own hands. And when we have this kind of knowledge, what is there really to worry about? GFI
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