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Cover Story
February 2013 more inside...
Interview with IMF Managing Director
Christine Lagarde
Contents 18 Dubai
42. Cars
New Bentley V12
30 Bahrain
Market View
Bahrain tops in Economic Freedom
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32
Exploited and Misused
Real Estate Market at a glance
‘Arab Spring’
28 Bahrain
New Labour Law
Bahrain
36 Iran
Why Iran wants the bomb
46. Art
Nature lover turns artist
48. Tech Picks
Latest gadgets and tablets
49. Lifestyle
Your favourite luxury brands
50. Last Word
War against Spammers yields results
“We have
Since its inception, Tamkeen has created more than 180 programmes and enabled more than 65,000 Bahrainis and enterprises in Bahrain to Achieve their Potential. Tamkeen continues to create opportunities for career advancement and enterprise development to further enhance productivity and contribute to the private sector growth and the Kingdom of Bahrain’s national economy. Visit www.tamkeen.bh or call 17383333
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“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” – Charles Darwin
Publishers Nicholas & Rebecca Cooksey Editor in Chief Nicholas Cooksey
Comments...
Layout Designs Dhanraj S
The world is changing. And this is nothing new. Every few hundred years, wealth and power shifts. This has happened so many times before, it’s hard to even keep track. Mesopotamia. Persia. Macedonia. Greece. Roman Empire. Byzantium. Mongolian Empire. Ming Dynasty. Ottoman Empire. Habsburg Empire. French-Bourbon Monarchy. British Empire. Third Reich. United States of America.
Admin & Finance Nikesh Pola Business Development Manager Sueallen Menezes
This change is as old as human civilization itself. And it’s happening again. Decades of unsustainable debt have caught up to the West, and wealth and power are once again shifting. In the case of the US, the government doesn’t even collect enough tax revenue to cover the costs of mandatory entitlement programs and interest on the debt. More specifically, the US government is already in the hole by nearly $250 billion before they actually start paying for government. The US government spent 19.7% of tax revenue on debt interest in 2011. And yet, interest rates in the US are practically zero! Imagine how quickly this will spiral out of control when interest rates start rising, even by a little bit. Of the superpowers throughout history who came before, many were in the exact same position: deeply in debt, rapidly debasing the currency, and ignoring reality. People have always wanted to pretend that everything is just fine, and the wheels can stay on the bus for a long time... far past the point of no return. But when the final unraveling begins, it happens very, very quickly. And history shows that the consequences are tumultuous.
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Issue 97
Bahrain | Dubai
Market View
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New Labour Law hits Private Sector
‘Arab Spring’
Bahrain Tops in Economic Freedom
Exploited and Misused
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Send your views to gulfinsider@ArabianMagazines.com The multi-award winning Arabian magazine
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Fighting Cyber Crime
The cyber crime predictions for 2013 were very disturbing. It is true that precaution is better than cure especially in today’s world where technology is readily available to plan any kind of social or economic disruption. Organizations need to be prepared for the worst and cyber reforms and policies need to be revisited for better safety. The solutions offered by cloud-oriented security services and new intelligence-based security models seem to be quite practical in order to counter the effects of cyber crime. Ryan, Manama
Promoting Art in the Kingdom
Your ART feature on the Artist Bianca Danilov was really refreshing. Although I am not an artist, I really enjoyed looking at her wonderful art collection - maybe because I have lived in Romania and having spent a lot of my time in Romanian art galleries I instantly developed an association with her work. Her strokes on flowers and landscapes reminded me of how beautiful Eastern Europe is and made me just want to go back.
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I enjoy reading your car reviews every month. They are not only entertaining but also very easy to understand especially for readers like myself who don’t understand automotive jargon. I found the Cadillac initiative of organising test drives on the race circuit rather than public highways very interesting. More car companies should try and consider such opportunities not only for journalists but also for car enthusiasts. Car companies in Bahrain are you listening!?
Religious and political tensions are not just limited to Jerusalem but are common in all parts of the world. It’s so illogical to fuel man made differences when we are united on the humanity front. We need to advocate unity in diversity at all levels so that peaceful living may once again become the norm. May this year be a peaceful one for the kingdom and for all countries across the world!
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Bahrain
Gulf Round-up Dubai hotels recorded highest profit margins since 2009 According to a report by TRI Hospitality Consulting, hotels in Dubai, Abu Dhabi, Cairo and Sharm Al Sheikh saw a growth in occupancy and earnings in November 2012, Gulf News has reported. Dubai hotels, which recorded the highest profit margins in 36 months in the region, saw occupancy rates go up 3.1% to 90.8% in November, said the report. Average Room Rate (ARR) in Dubai hotels rose 1.6% to $360.47, while Revenue per Available Room (RevPaR) climbed 5.2% to $327.16. Also, Gross Operating Profit per Available Room (GOPPAR) jumped 12.3%, the highest regionally for November, to $297.15. – AME Info
Stephen Harris
New General Manager appointed to head Jaguar Bahrain dealership First Group of Bahrainis Graduate from Tamkeen’s Occupational Health & Safety Programme The first Graduation Ceremony of Tamkeen’s Training and Employment programme in Occupational Safety and Health (OH&S) in cooperation with Arabian East Training Centre (AETC) was held at the Regency Intercontinental early this year. The first group of graduates comprised of 50 Bahrainis who completed the programme requirements to get the NEBOSH certificate, an internationally-accredited OH&S certificate issued by the National Examination Board in Occupational Safety and Health (NEBOSH). The programme is offered as part of Tamkeen’s initiatives aimed at enhancing the capabilities of Bahrainis and enabling them to penetrate into a viable source of employment. Many of the graduates have already secured employment opportunities with several leading companies in Bahrain, including Bahrain Petroleum Company (Bapco), Naser Abd Mohammed Company (Namco), Mechanical Contracting & Services Company (MSCS), Midal Cables, Gulf City Cleaning Company, and Cebarco Bahrain.
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Gulf Insider February 2013
Jaguar Bahrain is proud to announce the appointment of Stephen Harris as its new General Manager for the Bahrain dealership. With over 25 years of experience in the automotive industry and more than 10 years in automotive business in the Middle East, Stephen will be responsible for leading the continued growth of Jaguar in the Kingdom. Stephen has considerable knowledge about the car industry and has managed large automotive businesses in the UK, Asia Pacific and the Middle East. He aims to offer outstanding levels of customer service that will set Jaguar ahead of its competitors in the region. Confident and excited about spearheading the brand in Bahrain, he said: “I am delighted to be here in Bahrain managing an iconic brand with such a rich heritage making it one of the most prestigious brands in the world”. Bahrain’s exclusive Jaguar dealership is looking forward to the brand’s new journey in the Kingdom and is very positive about it reaching its destination.
Business News
Qatar received 6,000 labour complaints in 2012
No Saudi climbdown on foreign worker levies Saudi Arabia’s labour minister Adel Fakeihhas insisted that the $640 (SR: 2,400) levy per worker being imposed on private sector companies that employ more foreigners than Saudis will be implemented, despite objections from contractors and other industries. In an interview with Arab News, he said the levy was being imposed in order to bridge the gap between the cost of employing Saudis and cheaper expats by raising the cost of foreign labour. “This is not a ministry decision, it’s a Cabinet decision,” he said. The fee will be imposed on firms who employ fewer than 50% of Saudi nationals, and the minister said that firms which refuse to pay will find that the ministry will not issue or renew any work permits until they are settled. “If there are objections through rational cases by people affected by the decision, the ministry will receive these grievances and study them, and then will submit them to the king for consideration. “It is not the right of any organization to refrain from the implementation of the decisions of the Council of Ministers.” He said that the money raised through the levy would not be paid into state treasury coffers but would fund the Kingdom’s Saudization programme, also known as Nitaqat. Subsidies will be given to firms taking on unemployed Saudis and it will support job training efforts. The minister said that around 400,000 new posts had been created since the Nitaqat programme was launched. According to the Kingdom’s Department of Statistics, there are currently around 588,000 unemployed Saudis. “With the high number of expats employed in the Kingdom and the high number of unemployed Saudi citizens, what concerns us most is that in a time when we suffer from unemployment, we find that for every 10 employees working in the private sector, there are only two Saudis for every eight expats,” the minister said. In November, the head of the contractors’ national committee of the Saudi Chambers of Commerce, Fahd Alhamadi, told the Arabic newspaper Asharq Al Awsat that the fees were “illogical and have negative impact on both small and medium companies”. He added that it could lead to many companies closing their doors. – Construction Week
Qatar’s Ministry of Labour received more than 6,000 worker complaints in 2012, the Labour Relations Department has reported. Most of the complaints were for labour-right violations, including denial of end-of-service benefits to those leaving the country permanently, and delays in salary transfers. Employers not giving air tickets to workers to visit their home countries during vacations is another frequent complaint. Some companies were found paying less to female employees compared to men, but officials said that salaries are based on the contract signed between the employer and worker. “It is important for human rights organisations to work with the government, although they have an advisory role,” said Dr. Ali bin Futais Al Marri, chairman of the National Human Rights Committee and President of the Arab Network for Human Rights Institutions. Human rights violations in Qatar are under additional scrutiny as many international organisations are pushing the oil and gas-rich Gulf state to enforce adherence of labour rights in the run-up to FIFA 2022 World Cup. The International Trade Union Confederation is already said to be ready to mobilise workers and football fans with the campaign ‘No World Cup in Qatar without labour rights’ if Qatar does not provide safe conditions for those working on construction sites. Qatar has promised a labour reform before the event, and organisers have said they will ensure contractors adhere to international labour laws at construction projects before the tournament. – Construction Week
Gulf Insider February 2013
11
Bahrain
Saudi Arabia faces engineering skills crunch There is a shortage of skilled, experienced local engineers in Saudi Arabia, which is hampering the growth and development of the local sector, says Saudi Council of Engineers chairman Arch. Hamad N.A. Al-Shagawi. Of the total 170,000 engineers in Saudi Arabia at present, 140,000 are non-locals (this figure can be broken down further into 54,000 Egyptian engineers and 20,000 Jordanian engineers). That still leaves a staggering number of 30,000 Saudi Arabian engineers … But Al-Shagawi points out: “It is not enough. We have a problem in that there is a shortage – maybe not so much in terms of numbers, but in terms of experience, skills. “The skilled people are highly paid all over the world, so why must they come to Saudi Arabia? They rather go to Dubai, Malaysia, Singapore, Korea or the US.” Al-Shagawi says it is virtually impossible for Saudi Arabia to offer commensurate salaries or incentives to attract the level of expertise that is required. This is where the SCE comes into its own in promoting homegrown engineering talent. “The main vision is to promote the services of our companies.” - Construction Week
Bankers want more time to save UAE real estate market UAE bankers have asked for a postponement of 50% cap on mortgages. The Emirates Banks Association met this week to discuss the central bank’s recent tough new limits imposed on mortgage caps for both expatriates and nationals in the UAE. The bankers requested that the UAE Central Bank postpone implementation of the mortgage cap for a month. The bankers would develop guidelines in that month that are the basis for a code of conduct for banks to follow. Bankers believe such code of conduct would give them an effective hand in managing themselves. It would also buffer against overheated markets based on speculation. The Central Bank surprised markets with amendments that cap mortgages at 50% for expats and 70% for nationals. “The majority of the banks operating in the country attended the meeting which was held in Dubai and signed on the request to the Central Bank to postpone implementation in order to pave the way for further suggestions and proposals about these ratios to be discussed with the Central Bank later on,” said a source, who declined to be named. The bankers agreed the Central Bank’s Mortgage ratios will result in negative repercussions for the economy, with the real estate sector majorly impacted.
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Gulf Insider February 2013
Qatar’s ‘culture of nonpayment’ has to change Qatar “now has the reputation for the worst payment culture in the Gulf”, which could pose a threat to its ambitious 2022 World Cup plans, reports the Building Design weekly newspaper of the UK. “Back in 2007, they told us it was a seller’s market, and we had no option to change the terms and conditions, so we all signed up to them,” an architect working in Doha told the weekly. Five years later, some of the same firms are now “owed millions of pounds,” claimed Building Design. “Unless its arcane payment structure makes it easier for consultants to be paid, the fear is that many will refuse to work there.” This could cause further delays on Qatar’s ambitious infrastructure build-up for the FIFA World Cup in 2022. “Qatar is the richest nation on earth, and it is looking to do a massive amount of additional development, but cannot risk a bad press,” one consultant still awaiting payment told the weekly. – Construction Week
VIVA’s “Graduate Development Program” opens new doors for young Bahrainis VIVA Bahrain launched a P r o fe s s i o n a l Development Initiative under the umbrella of its ‘Graduate Development Program’ aimed at nurturing and securing top notch Bahraini talent for the company. This initiative from VIVA aims to offer unique career opportunities coupled with on-the-job learning exposure and a well-thought development and growth plan for the young Bahraini graduates. The ‘Graduate Development Program’ will be executed over a 12-month period, after which trainees with exceptional on-the-job performance and skills will qualify for an internal career opportunity within VIVA and will be offered placements through the normal selection process.
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Feature Interview 1
e v i s u l c Ex w e i v r e t In
Interview with IMF Managing Director
Christine Lagarde By CNN’s Christiane Amanpour
This interview is edited exclusively for Gulf Insider and supplied to Gulf Insider by CNN.
14
Gulf Insider February 2013
Feature Interview Feature
W
hat happens now that one of Europe’s powerhouses, Spain, has been forced to take a bank bailout to the tune of $100 billion? It’s no secret that Greek voters are angry and now people are angry also in Ireland and Portugal because Spain does not have to meet as many draconian conditions as they did for their bailout. Spain has already enacted tough austerity measures and reforms. People there are indignant, literally. The indignados are back on the streets. That’s the Spanish protesters that spawned Occupy Movement here in the United States and around the world. Unemployment in Spain is now a staggering 29 percent. Christine Lagarde, the managing director of the IMF, the International Monetary Fund. I sat down with her as she was working on Spain’s bailout and we talked about some of the worst-case scenarios for Europe. But she started out by outlining what she sees as Spain’s must-do list. Christine Lagarde, International Monetary Fund: What’s really important and probably lacking at the moment is the backstop, backstop meaning, you know, a strong sense that there will be enough always if more funds, more capital is needed to strengthen the system. There is a minority of the system that needs strengthening in order to address vulnerabilities, weaknesses of the system and that’s really essentially our conclusion. Amanpour: Do you agree with George Soros’ assessment that there’s three months to save the euro? Lagarde: He’s -- George’s is very good at setting, you know, sort of deadlines and attracting the attention, which is good, because the -- you know, there has to be attention paid to the current situation. But I think, you know, it needs to happen -- various things need to happen shortly. Amanpour: Such as? Or what we’ve just been discussing? Lagarde: Shortly. Yes. More shortly than three months, I would say. And it’s not to say that there is a
deadline and that the whole, you know, situation is going to unravel. I think the -- you know, the construction of the Eurozone has taken time. And it’s a work in construction at the moment. And it keeps being improved and amended and strengthened over time. Markets are finding it too slow and, clearly, that’s the message that is being delivered. Amanpour: Do you think Greece is going to exit the euro? Lagarde: My hope is that Greece, once it has resolved its current election situation and has a government in place, based on a coalition, I suppose, can actually restore the conditions of a good dialogue and will implement the reforms, and will put in place the measures that are necessary for that country to stay within the Eurozone. Amanpour: Do you think it’s possible, where they are right now? Lagarde: It’s going to be a question of political determination and drive to actually do so. Amanpour: You’ve been asked about what is ailing Greece and you’ve been asked to comment on the personal pain that many Greeks are feeling. And you commented that from your point of view, it would be much better if the Greeks paid their taxes and that that would fix things. Do you still stand by that? Lagarde: Let me put it that way, I have respect for Greece, for the Greek population. And I’m very sorry that my comments were taken in a very -- you know, in a very inflammatory way and created offense. That I very much regret. But equally, I think that tax compliance is a necessary tool to restore any country’s situation, Greece, like others. Amanpour: There’s a -- the front page of “The Economist” is showing the ship of the economy, the ship of state of the economy sinking. You can see right there. And on it is said, “Ms. Merkel, can we start the engines now?” A lot of the onus is on Angela Merkel. Is that fair? Lagarde: Germany is the largest country in the Eurozone that has been very
My hope is that Greece, once it has resolved its current election situation, I suppose, can actually restore the conditions of a good dialogue and will implement the reforms. successful because of the measures that have been taken, because of the sacrifices made by the German population to contain its salaries and to improve productivity and to drive its economy through exports. So now, a lot of the pressure is on Germany to actually help out. But I fully understand, as well, that Germany, in consideration for the help that it could give in starting the engine, will expect that others are also doing, you know, what they had to do. Amanpour: Do you think if Angela Merkel wasn’t a woman, she would get this amount of push back? Lagarde: No. I think it -- well, I think she’s a very strong leader. She’s a very courageous woman. She’s always very keen to understand fully the situation and I think she has a very solid sense of balance, you know. It’s a give-and-take process. It’s a two-way street. And, you know, what’s in it for her, for Germany, what’s in it for others and how do we balance out the situation? Amanpour: But you think she wouldn’t be under such global attack if she wasn’t a woman? Lagarde: Hmm. Well, Germany is Germany and the economic forces are the same. But I think that there is a slight tendency to actually maybe overdramatize, and maybe the media participate in the process, the pressure under which she is. And it’s, you know, Gulf Insider February 2013
15
Feature Interview
Countries cannot carry on growing, creating jobs, if they carry on their back a huge amount of public debt. So there is no doubt that public debt has to be gradually, over time, reduced. surprisingly, and very practically, a maledominated world, where she stands out. Countries cannot carry on growing, creating jobs, if they carry on their back a huge amount of public debt. So there is no doubt that public debt has to be gradually, over time, reduced. How do you reduce public debt? By having less deficit. How do you reduce deficit? By either having significant growth and therefore revenues, or cutting spending. And you probably need to do a combination of both in order to reduce deficit, which will reduce debt, which will allow, in turn, economies to grow and create jobs. Amanpour: Is it about not having the funds or is it about not having the political mechanism and the political will to deal with this? Lagarde: Everybody has skin in the game. Everybody has a stake in this being resolved, because all the economies are vastly interconnected. That’s what President Obama has indicated. There is a clear connection and vulnerability to what is happening else where in the world, particularly when it’s the Eurozone, which is a major trading partner. Amanpour: Christine Lagarde, thank you very much, indeed. Lagarde: Thank you. GFI
This interview is edited exclusively for Gulf Insider and supplied to Gulf Insider by CNN. 16
Gulf Insider February 2013
Property London
2012 breaks record for super prime London residential sales
A
record number of London homes worth £5 million plus changed hands in 2012 as demand for the capital’s residential real estate remained strong in spite of increased taxation, says international real estate adviser Savills. Last year there were just over 400* sales in London worth in excess of £5 million, with a total value of over £4.1 billion, suggesting that buyer confidence in this sector of the market has largely absorbed the increased shock of increased taxation announced in the spring Budget. Super prime properties are now valued at 32 per cent above peak, compared to 23.9 per cent for the prime central London average, according to the Savills prime central London index. Sales continue to be heavily concentrated in the golden postcodes. Two-thirds of these top sales were in the core central postcodes of SW1 (Belgravia), SW3 (Chelsea), SW7 (Knightsbridge), W8 (Kensington) and W1 (Mayfair). The total value of deals in this sector was slightly down on the 2011 peak, a reflection both of lower levels of stock in the very top tiers of the market and a reduction in the exchange rate advantage for most overseas buyers. There were 62 known sales worth over £15 million in 2012, compared to 72 in 2011.
A 6.4 per cent value boost over the course of 2012 (compared to the prime London average of 5.0%) has also boosted the £per square foot value of £5million plus properties in London. The average value climbed to a record high average of £2,370 per square foot, marginally higher (+3.1%) than in 2011. Ultra prime properties worth over £15 million achieved over £3,000 per square foot, demonstrating a clear premium for scale.
New build on top again
The super prime market was boosted by particularly strong levels of new build sales as more stock entered the market. For the first time since 2006, sales of new build homes worth over £5 million exceeded 50, with a total value of over £600m.
This high end new build stock carried an identifiable premium given its ability to meet the demands of ultra wealthy overseas buyers. Average values of £3,329 per sq ft were 53% higher than the equivalent figure for second hand stock in this price range. “Transactions in the super prime market appear to have been much less affected by the tax changes,” says Lucian Cook, director of Savills residential research . “At this end of the prime market, housing wealth tends to be a much smaller proportion of a buyer’s total wealth. This suggests that it will outperform over the next 5 years and should be less susceptible to a slowdown in the coming year.” GFI
*Analysis by Savills research and reflective of all known market sales.
Total prime central London market - £5m+ sales: Year
No (approx)
Total Value
Average Per Sq ft
2006
170
£1.5bn
£1,436
2007
250
£2.9bn
£2,097
2008
210
£2.6bn
£2,207
2009
210
£1.9bn
£1,807
2010
280
£3.0bn
£2,018
2011
350
£4.2bn
£2,296
2012
400
£4.1bn
£2,370
Source: Savills Research Gulf Insider February 2013
17
Dubai - UAE
Dubai Office & Residential
Market View - Q4 2012 Residential Sector Continues to Achieve Positive Growth Levels Despite Increased Supply During the Year.
T
he UAE has registered a solid economic performance for the year, bucking negative global trends that continue to hamper the recovery in Europe and the US. The latest figures from the IMF show a 4.0% growth for 2012, with non-oil sector GDP expanding by 3.3%. This trend is expected to continue during 2013 with the non-oil sectors growing by 3.5%. Dubai’s outlook is increasingly positive with the key real estate
18
Gulf Insider February 2013
sector enjoying an improved year, with the performance of the hospitality and residential sectors particularly buoyant. The market is benefitting from recent Government initiatives and renewed commitment to major infrastructure projects, which are seen to be acting as a catalyst to improving sentiment. During the quarter, the Business Bay Creek extension was reconfirmed, along with major transport related works that will ultimately improve connectivity in the emirate.
The long awaited Real Estate Investor Protection Law is expected to be released early in the new year. The new regulation will help to further solidify the recovery, underpinning investor confidence and crucially regulating the off-plan market. Three delayed developments have now been revived under the Government’s Tanmia project, with two properties located in Jumeirah Lakes Towers and one in the Business Bay area.
Real Estate Dubai
Office Market
Dubai’s office sector has remained broadly stable during the final quarter with average CBD lease rates flat at AED1,450/m²/annum. However, over the course of the year rents have fallen marginally by around 4.0%, due to an increase in tenant movements away from ageing properties to newer, better quality accommodation. Despite a minor decline in the average rate, some prime properties around the CBD have actually managed to grow their headline rents over the past 12 months, aided by the limited supply of good quality and efficient office spaces. The office market has seen a slight increase in leasing activity during 2012, but still fell some way short of matching new supply delivered over the course of the year. This has resulted in
Average Prime Office Rents, 2007-2012
The office market has seen a slight increase in leasing activity during 2012, but still fell some way short of matching new supply delivered over the course of the year. further inflation of vacancy rates across the majority of the emirate’s major business districts. The highest vacancies are found within locations most impacted by strata title spaces, such as Business Bay and Dubai Silicon Oasis. Sole ownership assets within these areas are currently commanding far loftier rents, whilst also benefitting from superior occupancy rates, highlighting the emergence of a two-tier marketplace. Strata title office buildings are still considered unattractive by most large occupiers and corporate tenants, due to
the complexities of multiple ownership across the property and the resulting inefficiencies this creates. Office stock continues to swell as projects launched during the peak of the cycle enter the market. Close to 600,000 square metres of new stock was delivered during 2012, with the majority of this accommodation within freehold developments. Overall office stock in Dubai has increased by 75% since the beginning of 2009, with close to three million square metres completed during this period.
Office Stock Growth
Gulf Insider February 2013
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Dubai Real Estate
Residential Market
The residential sector ended the year in buoyant fashion, with upward trends recorded for both sales and leasing rates during the period. After several years of sustained declines, renewed confidence has returned to the sector, driven predominantly by increasing activity from cash investors. Dubai continues to dominate the region as the major investment destination with its safe haven status firmly cemented. Residential rental rates increased by 16% during 2012, with average apartment lease rates rising 17% year-on-year and 8% quarter-on-quarter . Villa lease rates also continued to rise despite the entry of a significant number of new villa properties, growing 14% year-on-year and 6% during the last quarter. 2012 witnessed the re-emergence of off-plan sales launches in Dubai, with mixed fortunes for the developers. However, Emaar in particular registered very positive sales for its new schemes in Emirates Living, Downtown and the Arabian Ranches. To date, new off-plan developments have been focused on already established locations, with developers looking to exploit a lack of good quality available product in some of the emirate’s more desirable freehold locations. Whilst the return of off-plan launches has so far been modest, a rise in speculative activity is clearly something to monitor closely over the coming year, particularly in light of recent regulatory changes. The UAE Central Bank has moved to cap bank Loan-To-Value (LTV) ratios for first and second homebuyers in the
Appartment Rents
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Gulf Insider February 2013
Dubai continues to dominate the region as the major investment destination with its safe haven status firmly cemented. country. With many local banks accused of over exposure to the property sector in the aftermath of the economic crisis, implementation of more stringent lending procedures would appear to be a reasonable response. The bank circular (dated 30th December 2012) stipulated that first home lending to non-nationals should be restricted to 50%, and 70% for nationals. Second home lending and lending on subsequent properties should be restricted to 40% for non-nationals and 60% for nationals. Clearly, the Government is looking to control speculation in Dubai’s residential sector and avoid further overheating after increasing sales and leasing rates were recorded across much of the marketplace during 2012. However, whilst the move may have a moderate cooling effect on overall sales levels, current market growth is being driven by cash investors rather than end-users. In 2012, Dubai’s mortgage market was estimated at 20 – 30% of total residential transactions, reflecting a high degree of liquidity in the sector. This is a trend that is arguably more difficult to manage and control, at least without further regulation or the implementation of higher taxes and levies on property sales.
Outlook
The office sector is likely to remain under stress during 2013, due to continued supply and demand imbalances caused by the excessive Villa Rents
delivery of strata title stock. Of the roughly 600,000 square metres of new inventory to be completed during 2013, we estimate that close to 60% will be held on a multiple-ownership basis. Based on new and existing office enquiries, absorption rates are expected to increase again during 2013. Although, the weight of existing vacant stock, coupled with new supply, will see the further elevation of vacancy rates over the next 12 months. Rental levels in the CBD area are unlikely to fluctuate too significantly despite expected new supply across much of the market. Office demand in this area remains extremely high, with limited availability of good quality stock. As a result, we can expect to see a further evolution of a two-tier market, with declining rental rates for ageing and multiple-ownership properties, and potential upside in rent and occupancy rates for accommodation within good quality, single ownership buildings. The country’s strong economic performance is anticipated to fuel a further influx of quality workforce over the next 12 months, helping to sustain demand for mid and high end residential units. Overall, the residential sector is forecast to continue its upward trend for sales and leasing rates, although given recent legislative changes, 2013 is perhaps unlikely to match the performance of the current year. GFI
New iPad Technology
The new iPad –
is it time for an upgrade? Apple recently launched the fourth generation iPad which like its predecessors comes in 16, 32 and 64 GB storage variants each with WiFi only or WiFi + 3G. Gulf Insider was given a test device by VIVA and I welcomed the opportunity of putting it through its paces.
T
he new iPad looks exactly the same as the previous models (except for the connector at the bottom) and weighs the same. It uses the same retina display as the previous model which is vibrant, extremely sharp and bright. The screen is so vibrant and clear that it looks almost real. Reading text and viewing photographs on the retina display was fun; sharper text makes reading easier and photographs show more detail. The key difference in this iPad is a faster processor and Long Term Evolution (LTE) support. Apple claims that the new A6 processor is twice as fast as the A5 chip powering the 3rd Generation iPad and can deliver much better graphics performance. However, in practical use there are only marginal differences in performance – apps launch a bit faster than before and pictures snap faster. For everyday tasks such as browsing, emailing, or using social networking apps the new processor does not lead to a significantly better user experience. The real impact of the extra processing power would be noticeable in gaming or other processor intensive apps such as photo editing. The second key difference in this iPad is support for LTE but it seems we will have to wait for a few more months before being able to test that feature in Bahrain. I did consider hopping across the causeway to test the LTE capabilities on the device but unfortunately had to go through the tedious visa process which
A major change in the new iPad is the lightening connector which is much smaller than the previous connector and reversible making it easier to connect. made me decide against it. Just like the previous 2 models, the 4th Generation iPad comes with both front and back cameras. The front camera has been upgraded to 1.2 MegaPixel in comparison to the VGA camera on the iPad 3 whereas the back camera remains the same. I did feel that the cameras could have been further improved, especially the front one. Both cameras take decent quality pictures but still leave a lot to be desired. I do admit that the new feature of making videos is very useful and something that was much needed. The biggest plus of this device is the 8-10 hours of battery backup – a blessing when you are taking pictures, reading or making /watching videos. A major change in the new iPad is the lightening connector which is much smaller than the previous connector and reversible making it easier to connect.
It is also faster when transferring files. However, what really put me off was the fact that it is not compatible with all accessories designed for the previous generation iPads and iPhones. Thanks to Apple’s new “innovation”, the Bose dock that I purchased three months ago for BHD 150 would just be useless and now I can’t even connect the device to my car. I am sure there any many others like me who wouldn’t want to part with their expensive accessories so soon. Considering it was even less than eight months ago when Apple launched the previous iPad, I am beginning to wonder why Apple felt the need to launch the next one so soon? I would say that the new iPad is a good buy for people who don’t already have an iPad. It is not worth an upgrade from the third generation and for most people even the iPad 2 would fulfill their needs. GFI
VIVA offers the long-awaited Apple tablets with an array of attractive and convenient unlimited data plans ranging from BD20, BD25 and BD30 per month that allow customers to connect to the Internet at up to 42 Mbps speed to download movies and apps, and browse the web at amazing speeds with VIVA’s network. The new iPad is available at all VIVA outlets across Bahrain. Gulf Insider February 2013
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Arab Spring Exploited and Misused
Exploited and Misused: The Impossible Discourse of the
‘Arab Spring’ By Ramzy Baroud
A
reductionist discourse is one that selectively tailors its reading of subject matters in such a way as to only yield desired outcomes, leaving little or no room for other inquiries, no matter how appropriate or relevant. The so-called Arab Spring, although now far removed from its initial meanings and aspirations, has become just that: a breeding ground for choosy narratives solely aimed at advancing political agendas which are deeply entrenched with regional and international involvement. When a despairing Tunisian street vendor, Mohamed Bouazizi lit himself on fire on December 17, 2010, he had ignited more than a mere revolution in his country. His excruciating death had given birth to a notion that the psychological expanses 22
Gulf Insider February 2013
between despair and hope, death and rebirth and between submissiveness and revolutions are ultimately connected. His act, regardless of what adjective one may use to describe it, was the very key that Tunisians used to unlock their ample reserve of collective power. Then-President Zine El Abidine Ben Ali’s decision to step down on January 14, 2011, was in a sense a rational assessment on his part if one is to consider the impossibility of confronting a nation that had in its grasp a true popular revolution. Egypt also revolted less than two weeks later. And it was then that Tunisia’s near-ideal revolutionary model became prey for numerous, often selective readings and ultimately for utter exploitation. The Egyptian January 25 revolution was the first Arab link between Tunisia and the upheavals that
Exploited and Misused Arab Spring
Yet despite the repeated failure of the unitary ‘Arab Spring’ discourse, many politicians, intellectuals and journalists continue to borrow from its very early logic. travelled throughout Arab nations. Some were quick to ascribe the phenomenon with all sorts of historical, ideological and even religious factors thereby making links whenever convenient and overlooking others however apt. The Aljazeera Arabic website still has a map of all Arab countries, with ones experiencing revolutionary influx marked in red. Many problems have arisen. What tools, aside from the interests of the Qatari government, for example, does Aljazeera use to determine how the socalled Arab Spring manifests itself? And shouldn’t there be clear demarcations between non-violent revolutions, foreign interventions, sectarian tension and civil wars? Not only do the roots and the expressions of these ‘revolutions’ vastly differ, but the evolvement of each experience was almost always unique to each Arab country. In the cases of Libya and Syria, foreign involvement (an allout NATO war in the case of Libya and a multifarious regional and international power play in Syria) has produced wholly different scenarios than the ones witnessed in Tunisia and Egypt, thus requiring an urgently different course of analysis. Yet despite the repeated failure of the unitary ‘Arab Spring’ discourse, many politicians, intellectuals and journalists continue to borrow from its very early logic. Books have already been written with reductionist titles, knitting linear stories, bridging the distance between Tunis and Sanaa into one sentence and one line of reasoning. The ‘Arab Spring’ reductionism isn’t always sinister, motivated by political convenience or summoned by neoimperialist designs. Existing pan-Arab or pan-Islamic narratives however wellintended they may be, have also done their fair share of misrepresenting whichever discourse their intellectuals may find fitting and consistent with their
overall ideas. Some denote the rise of a new pan-Arab nation, while others see the ‘spring’ as a harbinger of the return of Islam as a source of power and empowerment for Arab societies. The fact is, while discourses are growing more rigid between competing political and intellectual camps, Arab countries marked by Aljazeera’s editorial logic seem to head in their own separate paths, some grudgingly towards a form of democracy or another, while others descend into a Hobbesian ‘state of nature’ – a war of all against all. But reductionist discourses persist, despite their numerous limitations. They endure because some are specifically designed to serve the interests of certain governments – some with clear ambitions and others are simply trying to ride the storm. In the case of Syria, not a single country that is somehow a party in the conflict can claim innocence in a gory game of regional politics, where the price tag is the blood of tens of thousands of Syrians. Western media continues to lead the way in language-manipulation, all with the aim of avoiding obvious facts and when necessary it misconstrues reality altogether. US media in particular remains oblivious to how the fallout of the NATO war in Libya had contributed to the conflict in Mali – which progressed from a military coup early last year, to a civil war and as of present time an all-out French-led war against Islamic and other militant groups in the northern parts of the country. Mali is not an Arab country, thus doesn’t fit into the carefully molded discourse. Algeria is however. Thus when militants took dozens of Algerian and foreign workers hostage in the Ain Amenas natural gas plant in retaliation of Algeria’s opening of its airspace to French warplanes in their war on Mali, some labored to link the violence in Algeria to the Arab Spring. “Taken together, the attack on the U.S. embassy Gulf Insider February 2013
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Arab Spring Exploited and Misused
in Benghazi, Libya, the Islamist attacks on Mali, and now this Algerian offense, all point to north Africa as the geopolitical hotspot of 2013 — where the Arab Spring has morphed into the War On Terror,” wrote Christopher Helman, in Forbes, on Jan 18. How convenient such an analysis is, especially when “taken together.” The ‘Arab Spring’ logic is constantly stretched in such ways to suit the preconceived understanding, interests or even designs of western powers. For example, it is now conventional media wisdom that the US is wary of full involvement in Syria because of the deadly attack on the US embassy in Benghazi. When seen from Washington, the Arab region appears less compound and is largely understood through keywords and phrases, allocated between allies and enemies, Islamists and liberals and by knee jerk reactions to anything involving Israel or Iran. One only needs to compare media texts produced two years ago, with more recent ones. Whereas the first few months of 2011 were mostly concerned with individuals and collectives that had much in common with Mohamed Bouazizi – poor, despairing, disenfranchised, and eventually rebellious – much of the present text is concerned with a different type of discussion. Additionally there are almost entirely new players. 24
Gulf Insider February 2013
The Bouazizis of Tunis, Egypt and Yemen remain unemployed, but they occupy much less space in our newspapers and TV screens. Now we speak of Washington and London-based revolutionaries. We juxtapose US and Russian interests and we wrangle with foreign interventions and barefacedly demarcate conflicts based on sectarian divisions. “Arab awakening is only just beginning”, was the title of a Financial Times editorial of Dec 23. Its logic and subtext speak of a sinister interpretation of what were once collective retorts to oppression and dictatorships. “The fall of the Assads will be a strategic setback to Iran and its regional allies such as Hizbollah, the Shia Islamist state within the fragile Lebanese state,” the editorial read. “But that could quickly be reversed if Israel were to carry out its threats to attack Iran’s nuclear installations, enabling Tehran’s theocrats to rally disaffected Muslims across the region and strengthen their grip at home. It is easy to imagine how such a conflict would drag in the US, disrupt the Gulf and its oil traffic, and set fire to Lebanon.” Note how in the new reading of the ‘Arab Spring’, people are mere pawns that are defined by their sectarian leanings and their usefulness is in their willingness to be rallied by one regional power or another. While the language itself is consistent with western agendas
in Arab and Muslim countries, what is truly bizarre is the fact that many still insist on contextualizing the everconfrontational US, Israel and western policies in general with an ‘Arab Spring’ involving a poor grocer setting himself on fire and angry multitudes in Egypt, Yemen and Syria who seek dignity and freedom. Shortly after the Tunisian uprising, some of us warned of the fallout, if unchecked and generalized discourses that lump all Arabs together and exploit peoples’ desire for freedom, equality and democracy were to persist. Alas, not only did the reductionist discourse define the last two-years of upheaval, the ‘Arab Spring’ has become an Arab springboard for regional meddling and foreign intervention. To advance our understanding of what is transpiring in Arab and other countries in the region, we must let go of old definitions. A new reality is now taking hold and it is neither concerned with Bouazizi nor of the many millions of unemployed and disaffected Arabs. GFI
Ramzy Baroud (www.ramzybaroud.net) is an internationally-syndicated columnist and the editor of PalestineChronicle. com. His latest book is: My Father was A Freedom Fighter: Gaza’s Untold Story (Pluto Press).
World’s Best-Seller Feature
Author of World’s BestSeller visits Bahrain
John Gray
O
ne of the world’s most famous U.S. authors, Dr. John Gray, the Author of World’s bestseller “Men Are From Mars, Women Are From Venus” plans to visit the island on February 20, 2013 – this would be John’s first visit to the Arab World. John plans to hold two seminars at the Diplomat Radisson SAS Hotel in Manama. There will be a morning session for business-owners and private/public sector employees aimed at helping businessmen to better understand their employees and foster work relations between them, and an evening session for general public – a more social and interactive forum to discusses relations between men and women in general. He also plans to talk about his book that sold 50 million copies around the world, was reprinted 10 times in Arabic alone selling about 14 million Arabic copies. Leaders Institute for Training and Development (Leaders), the organizer for the event, has established a dedicated Website: www.leaders-ec.com to post any updated information and to register
for the seminars. Leaders Institute has also established new social media accounts for the events on Twitter and Instagram to publish more information and news. Both accounts are available on @MarsVenusBH .
About John Gray, Ph.D.
John Gray, Ph.D. is the best-selling relationship author of all time and the most trusted voice in relationships today. He is the author of 17 books, including The New York Times #1 Best-Selling Book of the last decade, “Men are From Mars, Women are From Venus”. His 17 books have sold over 50 million copies in 50 different languages around the world. He is an internationally recognized expert in the fields of communication and relationships. His unique focus is on assisting men and women in understanding, respecting and appreciating their differences. John’s advice can be easily used to improve relationships at home and in the workplace. For more than 35 years, John Gray has conducted public and private seminars for thousands of participants.
In his highly acclaimed books, videos and transformational seminars, John entertains and inspires audiences with practical communication techniques. John’s purpose is to create a world where men and women understand, respect, appreciate and ultimately work together. Summit Entertainment (Lionsgate) has purchased the rights to John Gray’s bestseller “Men are From Mars, Women are From Venus” with the intention of creating a feature film and TV series. Summit has hired Harry Elfont and Deborah Kaplan to adapt and direct the title into a romantic comedy, with BermanBraun’s Lloyd Braun and Gail Berman as producers. John has been profiled in major publications across the United States and has made guest appearances on shows such as Oprah, The Dr. Oz Show, Good Morning America, The Today Show, The CBS Morning Show, Live with Regis, Fox & Friends Weekend, Good Morning New York, Larry King Live, and CNN and Company. John Gray lives with his wife and children in Northern California. GFI
Gulf Insider February 2013
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Bahrain - eGovernment
A group photo of the last year’s eGovernment Excellence Award, with HH Shaikh Mohammed bin Mubarak AlKhalifa, Chairman of the Supreme Committee for ICT and Deputy Prime Minister
eGovernment Excellence Award 2013:
Nominations open!
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The Multi-Sector also includes four subcategories; Best ICT Solutions Provider, eEconomy, eEducation and eNGO while the Individuals’ category includes two sub-categories named eCitizen and Best eConcept. For the individuals’ category, eCitizen selection will be decided based on the citizen’s effective participation and volume of transactions conducted on the eGovernment portal during the last year. “The eGovernment Authority strongly believes in encouraging technological initiatives which comply with the recent practices in this field, creating a competitive climate to ensure that efficient high-quality services are provided for Bahrainis and expatriates,” stated eGovernment Authority CEO Mr Mohammed AlQaed. He added that the eGovernment Excellence Award does not only aim to reward the winning projects but also intends to provide opportunities to the disqualified participants to learn and improve from the evaluation committee’s feedback. The committee thoroughly considers each submitted project ensuring that the content fulfills all local and international judging standards. The committee’s final HH Shaikh Mohammed bin Mubarak Al Khalifa honoring report includes remarks Mohammed Jalal, Chairman of GBM-IBM, one of the and instructions from winners of the last year’s eGovernment Excellence Award
rganizing committee of the sixth eGovernment Excellence Award is proud to announce the launch of the nomination period for the eGovernment Excellence Award 2013 that will continue till February 21st, 2013. Under the patronage of His Highness Shaikh Mohammed bin Mubarak Al Khalifa, Chairman of the Supreme Committee for Information and Communication Technology, and the Deputy Prime Minister, the award is open to all participants – individuals, public and private sector as well as NGOs. This year’s awarding ceremony consists of ten categories that are divided into three sectors – Government, Multi-Sector and Individuals. The Government Sector includes four sub-categories; Best eContent, Best eService, eMaturity and Best eProject.
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Gulf Insider February 2013
committee members that can be utilized as a good source of guidance for the disqualified participants to improve upon for next year’s round. Organizing committee of the award has a set criterion that is followed to short-list candidates who are expected to answer a few questions pertaining to their subject matter and are sometimes told to present their findings on flip charts. The jury, comprising of local and international ICT specialists who have professional expertise in the ICT and eGovernment domain, meticulously evaluate the projects following the filed visits and presentations by participants. The award forms part of the eGovernment’s plan to encourage new initiatives in the ICT field, boost up the public and private sector and enhance Bahrain’s image both locally and globally. Winners of the eGovernment Excellence Award will be announced and awarded at the opening of Bahrain International eGovernment Forum 2013 held under the patronage of His Highness Shaikh Mohammed. GFI
For more information on the eGovernment Excellence Award 2013 or for participating in the competition, please visit the eGovernment Excellence Award official website: www.egovaward.bh, or contact the National Contact Centre, Tel. 8000 8001
Enter Bahrain’s most prestigious excellence award
Government Multi Sector Citizen
Inspiring Innovation Under the patronage of H. H. Shaikh Mohammed Bin Mubarak Al Khalifa Deputy Prime Minister and Chairman of the Supreme Committee for Information and Communication Technology The eGovernment Excellence Award recognise exceptional achievements and innovations with the Information and Communication Technology (ICT) sector. It is open to all citizens, private businesses, government organisations and NGOs, who believe in the awards' aim to support and build on the success of Bahrain’s electronic infrastructure and global competitiveness.
Award Categories Government
Multi Sector
Citizen
• • • •
• • • •
• Best eConcept • eCitizen
Best eContent Best eService eMaturity Best eProject
Best ICT Solutions Provider eEconomy eEducation eNGO
Submit entries at www.egovaward.bh email: egovaward@ega.gov.bh or call 8000 8001
Bahrain
Bahrain’s New Labour Law hits the Private Sector The new labour law has brought about major changes in the leave entitlement for private sector employees. As much as it is a reason to celebrate for the employees, it may not be so for employers. 28
Gulf Insider February 2013
A
ll working individuals would have noticed the increase in the number of leaves allocated for the year, however, is this new leave policy well thought out? The Shura Council passed the new labour law on April 23, 2012 despite the difference in opinion over certain articles between the Bahraini upper chamber of the National Assembly and the Parliament. The new law was implemented on September 2, 2012 proposing various changes to the clauses that referred to Bahrain’s employee rights and protection. This gave a great reason for the private sector employees to celebrate. The Members of Parliament (MPs) took a stand to stick with their demanded amendments and succeeded in winning what they termed as a ‘milestone’ for the private sector employees.
New Labour Law Bahrain
Contrary to many private sector employees’ support of the new labour law, the business community of Bahrain has expressed huge rage over the changes. The new law brought about certain changes to the employee leaves allowances: The annual leave for private sector employees are brought at par with their government counterparts and increased from 24 days to 30 days Young people aged between 15 to 18 years old (who are not working on a professional contract) are also promised to get the same leave privileges The new law also increases the length of maternity leave from 45 to 60 days with an entitlement of another 15 days off without pay matching the entitlement given to their government counterparts Sick leave entitlement for the year also increased to 15 days with pay, 20 days with half pay and 20 additional days without pay with a further extension of up to 182 days if ordered by the Medical Commission, a body that is responsible for approving sick leaves, looking into accident issues and evaluating the percentage of disabilities caused by those accidents. Bearing in mind, Bahrain has up to 16 days of public holidays in a year. So a private sector employee who falls pregnant and is not feeling well (which is very probable) can take up to 160 days off in a year! And if she is lucky enough to get an order from the Medical Commission she could be at home for “at least” 182 days. Contrary to many private sector employees’ support of the new labour law, the business community of Bahrain has expressed huge rage over the changes. Many if not most of the businessmen feel that the increasing holidays will make the running of their businesses more difficult and adding additional days-off to the already existing leave entitlement and public holidays, will make many businesses suffer. “We will end up being losers if we have any more holidays than we already have.
If anything, these should be cut,” said businessman and Bahrain Chamber of Commerce and Industry (BCCI) contractors’ committee vice-chairman Nedham Kameshki. The BCCI’s board member and chairman of its youth businessmen committee and disputes and arbitration committee, Khalid Al Amin, said that more holidays pose extra costs to the businessmen. Some businesses in Bahrain have adopted a six-day week in order to make up for the lost output. However, the six-day week is going to be a challenge for the employers to maintain as the Labour Ministry is encouraging companies to adopt a five-day week to put the government and the private sector at par. Someone is definitely paying for this new leave system and it is most certainly the employers and businessmen of Bahrain. General views amongst the business community about the new leave entitlement are that its consequences have not been thought out well. According to some people who Gulf Insider got a chance to speak with recently, the new labour law aims to create popular electoral support for the MPs. “They want to tell people they are doing good things for them and retain their positions,” said Nedham Kameshki. Further to the above, Mr Al Dossary, the Labour Ministry Under-Secretary, has encouraged to continue the practice of companies giving an extra day off during the work week in case a public holiday falls on the days off, that is, if a public holiday falls on a Friday, employees get an additional holiday within the week. In that case, public holidays exceed 16 days estimated for the year earlier. This sounds more than perfect for our private sector pregnant employee! GFI
If you have any opinions on this matter, please contact us on gulfinsider@arabianmagazines.com Gulf Insider February 2013
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Bahrain
Bahrain tops in economic freedom B
ahrain claimed the regional crown and ranked 1st out of 15 countries in the Middle East and North Africa (MENA) region in the 2013 Index of Economic Freedom published by the Heritage Foundation and the Wall Street Journal. According to the report, Bahrain’s economic freedom score is well above the world average. The Kingdom’s economic freedom scored 75.5 making its economy the 12th freest in the 2013 Index. It’s overall score of economic freedom has increased by 0.3 points over the last year mainly due to its improvements in monetary freedom and freedom from corruption. Bahrain’s top ranking reflects its competitive advantage as a location for investments and business ventures in the Gulf region. The report reveals that Bahrain has a cosmopolitan outlook and a modern communications and transportation infrastructure as well as a free trade agreement with the U.S., which makes Bahrain home to many multinational firms doing business in the region. 30
Gulf Insider February 2013
As a regional leader in economic freedom, Bahrain sets a critical example for other countries in the Middle East and North Africa to follow. The report mentions that Bahrain’s transition to greater openness, diversification and modernization is based on its strong foundations of economic freedom. Despite the challenging external and internal environments, Bahrain has maintained above-average levels of economic freedom in almost every measure. It remains a financial hub for dynamic economic activity with high levels of trade and investment supported by a competitive and efficient regulatory environment. However, in order to maintain Bahrain’s success in this ongoing evolution, it is crucial to ensure firm institutionalization of the rule of law by enhancing transparency and judicial independence in the country. The 2013 Index of Economic Freedom is constructed through analysis of 10 specific components of economic freedom, which are grouped further into four key categories or pillars:
Rule of law (property rights, freedom from corruption); Limited government (fiscal freedom, government spending); Regulatory efficiency (business freedom, labor freedom, monetary freedom); and Open markets (trade freedom, investment freedom, financial freedom).
Rule of Law
Private property is secure and expropriation (especially without compensation) is very rare in Bahrain. Even though, the judiciary is generally well regarded and unbiased, the king holds some decision-making authority within the legal system.
Limited Government
Bahrain’s overall tax revenue is about 3.9 percent of GDP. Personal income in Bahrain is not taxed and most companies are also not subject to a corporate tax. However, a 46 percent tax is levied on
Economic Freedom Bahrain
oil companies. Other taxes in Bahrain include a small stamp duty and a recently introduced tax on property purchases. The report confirms that expansionary government spending, part of which was used to help control social unrest in the country, has reached 30.3 percent of total domestic output while public debt remains below 40 percent of Bahrain’s GDP.
Regulatory Efficiency
Bahrain’s regulatory framework is relatively competent. The Corporate Governance Code, introduced by the Ministry of Industry and Commerce, came into force in 2011 building up on the international best practice for corporate governance. Although this initiative has been led by the Ministry of Industry and Commerce, the Central Bank was involved at all stages in the development of the Code and a National Steering Committee on Corporate Governance was created to ensure the best corporate governance practices. The Steering Committee is a representative body of stakeholders
that includes government agencies, academics, the banking and accounting sectors, business associations, and other members of the business community. According to the report, inflation in Bahrain is low. Even though, there is no set minimum wage at the national level, wage increases have exceeded overall productivity growth during the past year. It is unlikely that water and electricity subsidies will be maintained in the long term, but broader reforms and privatizations are likely to be delayed until investor confidence is restored.
Open Markets
Bahrain’s diverse and competitive financial institutions account for over 25 percent of its GDP. The Kingdom has a very open market environment -average tariff rate is very low, non-tariff barriers are relatively few while foreign and domestic investors have access to modern financial services. There are no restrictions on repatriation of profits or capital, no exchange controls and no restrictions on converting or transferring
Bahrain’s top ranking reflects its competitive advantage as a location for investments and business ventures in the Gulf region. of funds, whether associated with investments or not. According to data collected for the 2013 Index of Economic Freedom, countries with higher levels of economic freedom substantially outperform others in economic growth, per capita incomes, health care, education, protection of the environment, and reduction of poverty. Bahrain’s leading position in economic freedom in the MENA region puts the island in the limelight as far as its performance in all economic and social spheres is concerned. GFI Gulf Insider February 2013
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Bahrain
Bahrain Real Estate Market at a glance
R
eal estate in Bahrain has been going through a rough patch especially in the last quarter of the year 2012, not helped by on-going political and domestic tension in the Kingdom which has hit various sectors in Bahrain very hard, especially the banking sector. Even though the country is supported by a well-regulated banking sector, it slowed down tremendously in 2011 while showed some signs of recovery the following year growing its balance sheets by 4.5% and deposits by 8.2% in July 2012. Analysts polled by Reuters anticipated real GDP growth to be 2.8% in 2012. Despite the concern over Bahrain’s domestic issues, both Fitch and Standard & Poors have maintained their relatively positive views of the country’s long-term sovereign credit ratings. Fitch retained
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Gulf Insider February 2013
Bahrain’s foreign currency rating at BBB with local currency at BBB+, while S&P maintained both at BBB. Several GCC states have come forward and offered Bahrain a helping hand, both individually and collectively, to help recover the Kingdom’s growth and development. Collectively, the GCC states, have allocated $10bn to be used for housing and infrastructure development. While, Kuwait has independently announced a grant of $273 million for two projects, the bulk of which is assigned for expanding and upgrading Bahrain’s electricity network. Apart from its plans to promote infrastructure development, the Kingdom intends to initiate a number of other large-scale initiatives. The new growth and development plan includes $4.8bn directed towards the state-owned oil company, $2.2bn investment into the
state aluminium entity and $1.2bn into Gulf Petrochemical Industries Company. In addition, Bahrain is moving forward with its plans to grow gas production from the current 1.5bn cubic feet per day to 2.5bn in 2020.
Commercial Real Estate
Commercial market remained slow in the last quarter of 2012, with only a few movements in or out of the market. The Diplomatic Area continues to suffer from weak demand and low occupancy rates by the tenants primarily due its poor access, passage space and parking areas. Despite the Shaikh Khalifa Bin Salman Highway’s recent expansion into a six lane highway that has significantly improved access for office workers travelling to established commercial areas, demand for the Diplomatic area
Real Estate Bahrain
Several GCC states have come forward and offered Bahrain a helping hand, both individually and collectively, to help recover the Kingdom’s growth and development.
remains bleak. During these times, people are very sensitive to rental rates and are mostly concentrating on minimizing their capital expenditure at the expense of an average location or lesser office space. Following attributes are given preference by mid to premium office occupiers in Bahrain when seeking space at present: 1. location in Seef District 2. fitted-out space 3. parking and access 4. other incentives (rent free periods) Rental rates for commercial areas have been stagnant since the past few quarters, however, the last quarter of 2012 is considered to be the last dip. An expected upturn in economic conditions this year, is building hopes for higher occupancy rates and hence rental rate recovery.
Residential Real Estate
Residential market showed some signs of growth as compared to the slowdown in most commercial areas. Occupancy and rental rates have picked up in the apartment sector while compound locations still show a downward trend. This is probably due to the political instability in the country that is making the Kingdom less appealing to expat families - bachelor expatriates are taking up positions that would otherwise be taken up by people with families hence the improvement in apartment rentals. Rental rates for Amwaj island apartments remained firm together with high occupancy due to the area’s popularity amongst the younger professional expatriates. Even though, apartments in Amwaj are limited with relatively high prices, it continues
to be a high demand area. The most popular locations for apartment hunting continue to be Reef Island and Juffair - the first for its proximity to the commercial office and retail district of Seef together with the availability of new properties, and the second for its selection of competitively priced, brand new properties that are still available. Locations like Mahooz and Adliya, the southern outskirts of the city, are more price-sensitive due to its aging infrastructure. Landlords in this area usually end up leasing their properties to third parties who then lease them for worker accommodation. Investors or consumers will be extremely hesitant to buy property in this environment, and will return to the market only when they see any signs of positive returns. GFI
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Bahrain
First Tamkeen Expo “A Resoundin Success”
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amkeen Expo 2013 was held at the Gulf Hotel on the 7th and 8th of January 2013, highly praised by participants and visitors. The attendees expressed overwhelming interest in the Expo and hoped that it could be an annual event to help them keep the private sector updated on the latest business trends as well as opportunities offered by Tamkeen. It would also enable them to enhance their business and drive economic growth in line with Bahrain’s Economic Vision. “I thought the event was exceptional
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from start to finish, and we thank everyone involved for their amazing support. We managed to get over 100 new business prospects through our participation in the exhibition, which is an outstanding result for us, and I strongly recommend to Tamkeen that this becomes an annual event moving forward”, said Mr. Graham Nugent - Managing Director of Mandevco, Bahrain Tamkeen Expo was held under the patronage of Tamkeen Chairman Shaikh Mohammed bin Essa Al Khalifa following the theme “We Have Achieved”. Around 2,000 people participated and attended
the event that brought together Bahraini entrepreneurs, members of the business community, and an elite group of entrepreneurship experts providing them with a unique knowledge-sharing opportunity. His Excellency (HE) Shaikh Mohammed thanked all the participants and visitors for their support for the success of the event, and stated, “We are immensely pleased with the great response from everyone involved. Tamkeen will take into consideration all the feedback received and look into bringing this event back and possibly expanding it in the future.”
Tamkeen Bahrain
Tamkeen helps accomplish a number of important national objectives to enable the next generations of Bahrainis to reach their potential.
According to the Head of Bahrain’s Silah Academy, Mrs. Ruth Williams, “We found the Tamkeen Expo immensely useful. The layout and venue of the exhibition were wonderful. We managed to network very successfully in terms of attracting candidates to train at the Silah Academy and recruit young Bahrainis as potential candidates for employment, in addition to generating new business opportunities”. Tamkeen Expo 2013 commenced with a conference that was attended by about 400 people. It focused on the leading role played by Tamkeen in the overall national economic development roadmap under the stewardship of His Majesty the King’s reform initiatives and His Royal Highness the Crown Prince Salman bin Hamad Al Khalifa. In the inaugural speech, HE Shaikh Mohammed underlined the strength of
the Bahraini economy and highlighted the measures taken by Tamkeen to create its various programmes which seeked to enhance the capabilities of Bahraini enterprises and individuals in line with the labour market requirements. “Through its initiatives, Tamkeen helps accomplish a number of important national objectives to enable the next generations of Bahrainis to reach their potential. These initiatives set specific goals and offer realistic and innovative solutions to fulfill the aspirations and ambitions of the Bahraini people. Tamkeen’s success, therefore, is directly linked to the success of our citizens and our kingdom as a whole”, he said. He also noted Tamkeen’s efforts in advocating paradigm shifts in business concepts such as micro-financing, SME funding, entrepreneurship, leadership continuous learning and training,
women economic empowerment, employment support, work ethics and best management practices. Tamkeen partners and certified service providers from various economic sectors also participated in the exhibition to introduce Tamkeen programmes to the public and encourage them to benefit from these programmes. Apart from that, a series of interactive workshops were held over the two days of the event that were led by a group of experts. Hundreds of attendees learned key aspects of entrepreneurship, including setting objectives and priorities, improving quality, increasing profits, using social media, applying to electronic tenders and developing marketing techniques. The workshops were conducted by Saer Imad, Enterprise Development & Support Department, Khalifa Fund for Enterprise Development (UAE), Kristina Nyzell, Director of Disruptive Play (Qatar), Ahmad Al-Mutawa, CEO of Al Mutawa Consulting Group (Kuwait), Helen Al-Uzaizi, CEO of the UK’s Mowgli Foundation (UAE), Saradind Kanamaluru, Assistant Manager for Training at Tata (India), Ali Sabkar, Founder and President of Social Media Club (Bahrain), Eric Mills, Founder and President of the National Institute for Social Media (USA), and Faisal Mohammed, Chief of Prequalification & Financial Evaluation Unit at the Tender Board (Bahrain) More than 66,000 Bahraini individuals and enterprises in Bahrain have benefited from Tamkeen programmes so far, and more than 100,000 beneficiaries are set to benefit from these programmes in the near future. GFI
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Iran Nuclear Power
Why Iran Wants
The Bomb
Iran’s unanimous desire to have the security of nuclear weapons puts it on a collision course with the West. By Con Coughlin
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or a country riven by violent political, religious and social divisions, the one issue that is guaranteed to unite Iran’s 75 million citizens is their country’s inalienable right to build an atom bomb. Any discussion of its nuclear programme must, of necessity, commence with the oft-repeated Iranian caveat that its ambitions are peaceful, and that they are focused solely on the development of nuclear power, rather than building weapons. But that claim now looks increasingly threadbare following publication of a recent uncompromising report by the Vienna-based International Atomic Energy Agency (IAEA) which, for the first time, accuses Iran of trying to acquire a nuclear weapons arsenal.
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That is certainly the conclusion most reasonable people will draw from the report, which provides a damning catalogue of wilful Iranian wrong-doing lasting more than a decade. It details Iran’s clandestine efforts to obtain fissile material whose usual application is for the production of nuclear warheads. It confirms that Iran is actively seeking to develop a long-range missile that can be fitted with a nuclear warhead. And it reveals that Iranian scientists – aided by a rogue nuclear expert from the former Soviet Union – have conducted experiments to develop a trigger mechanism for a nuclear weapon. And yet, rather than being dismayed by the IAEA’s findings, which is the instinctive response of most Westerners,
Nuclear Power Iran
I suspect the majority of Iranians will be delighted that, for all their political and economic travails, the report shows that their country is still very much on course to join the world’s elite club of nucleararmed powers. We in the West might be horrified at the prospect of the mullahs getting the atom bomb, but Iranians have a very different take on their country’s nuclear ambitions. Whether they are Islamist hardliners devoted to the rigorous application of Sharia law, or partygoing secularists from the prosperous suburbs of north Tehran, their ideological and political differences disappear the moment there is any discussion of Iran’s quest for nuclear parity with other world powers. Many of the biggest advances in Iran’s nuclear development were made when so-called moderates such as Mr Khatami and former president Hashemi Rafsanjani ruled Tehran. Mr Rafsanjani was responsible for initiating the nuclear programme in the late Eighties, while some of the most controversial developments, such as construction of the underground uranium enrichment facility at Natanz, were built during the reform-minded Mr Khatami’s presidency. Indeed, the CIA’s 2007 finding that, until 2003, Iran was actively working on a nuclear weapon refers specifically to Mr Khatami’s time in office. The widely held national desire of Iranians to reassert the influence their country once enjoyed, when the mere mention of the Persian empire struck fear into the hearts of its enemies, is a factor that should not be discounted lightly. But the more prosaic reality is that ordinary Iranians crave nuclear arms because of a deep-seated sense of insecurity that they are vulnerable to attack by their enemies. Arguably one of the main reasons Iran’s neighbour, Pakistan, has avoided being invaded by its deadly rival India is the fact that Islamabad has a stockpile of nuclear warheads it could deploy as a last resort. Saddam Hussein’s Iraq may no longer threaten Iran’s borders, but there are plenty of other Arab countries that would like nothing more than to see the overthrow of the ayatollahs’ brutal autocracy.
It confirms that Iran is actively seeking to develop a longrange missile that can be fitted with a nuclear warhead. There is unanimity among the major Western powers that a nuclear-armed Iran must be avoided at all costs, not least because the regime’s inherent instability, with different factions constantly vying for power, raises serious questions about who would actually have their finger on the nuclear button. If the weapons were controlled by the more ideologically committed elements within the Revolutionary Guards, would they be tempted to pass them on to their terrorist allies elsewhere in the region? The stream of anti-Western and anti-Israeli vitriol that emanates from the current leadership in Tehran certainly does not provide much reassurance to the West that Iran’s nuclear intentions are benign. The conclusions reached by the IAEA will increase the pressure on Western policymakers to do everything in their power to prevent Iran achieving its ambition, even if it means launching military action to destroy Iran’s nuclear facilities. This is a course of action that no sane person would advocate, particularly given Iran’s highly credible threat to cause havoc throughout the region if attacked. In the immediate future, all the talk at the UN will focus on ramping up the sanctions programme against Iran – and winning the support of China and Russia, which is crucial to its effectiveness – in the hope that the mullahs can be brought to their senses. But given that most experts believe Iran will have the means to build a bomb within a year, military action may become inevitable if sanctions fail. As things stand today, it seems that the very different worlds of revolutionary Islam and Western democracy are determined on a collision course. GFI
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UAE
Customer Service and Pricing Key Drivers for
Shopping Online in the UAE Online shoppers in the UAE are becoming increasingly savvy, with quality customer service ranking as important as competitive pricing when it comes to the motivation for shopping online according to a recent consumer survey* from JadoPado, a new e-commerce experience for consumers in the UAE. 38
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E-commerce UAE
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he survey, titled ‘JadoPado’s Anatomy of E-commerce in the UAE’, delved into consumers’ online shopping habits such as what people typically purchase and what time of the day they like to shop. Among the respondents who had shopped online before, consumer electronics were the most common online purchase (85% of respondents), followed by travel and event tickets (58%), and software and applications (49%). In addition, the typical e-commerce shopper preferred shopping in the later hours of the day, with the majority of respondents making purchases between 4 pm to 12 am. The online consumer is also after instant gratification, with 50% of respondents expecting delivery within three days and a further 24% wanting their products to arrive within 24 hours of purchase. Commenting on the survey findings, Omar Kassim, Founder of JadoPado said: “The survey underlines how consumers today are very discerning. Not only are they looking online for alternatives for the best deals, they are demanding great customer service as well. In order to capture the attention and wallet of online consumers, it is essential for e-commerce businesses to offer high quality experiences that combine topnotch customer service, competitive pricing and speedy delivery.” E-commerce spending in the region continues to grow rapidly, with a study by Visa valuing the market at approximately US$ 2 billion across the GCC last year with the UAE constituting over a quarter of this online spend. Credit card payment remains the most common form of online payment (75% of respondents), with cash on delivery being the second most common mode of payment for e-commerce purchases (55% of respondents). While most respondents to the survey had bought at least one item online in the last 12 months, a small proportion (13%) acknowledged that they have yet to experience online shopping. Security and the inability to touch and test products prior to purchase were highlighted as the primary reasons for not doing so. However, an encouraging sign for the e-commerce market in the region
is that a majority of these respondents (81%) intend to shop online in the next 12 months. “This is an incredibly exciting time for the e-commerce market in the Middle East and the UAE. There is no question that awareness of the availability of advanced security and payment methods in the region’s online space is growing. In the meantime, it is important to recognize that offering different modes of payments such as cash on delivery can speed uptake in the e-commerce market,” Omar Kassim added. GFI JadoPado’s Anatomy of E-commerce in the UAE Key Findings: 1. Most important considerations for shopping online: Pricing - 38% Quality of customer service – 37% Ease of use of e-commerce site – 31% Convenience and speed of delivery – 28% Product selection – 26% 2. Most common online purchases Consumer electronics and IT – 85% Travel and event tickets – 58% Software and applications – 49% 3. Modes of online payment used Credit card – 75% Cash on delivery – 55% Debit card – 28% Paypal – 23% 4. How long are you willing to wait for delivery One to three days – 50% 12 to 24 hours – 23% 4 days to one week – 15% 5. Reasons for not shopping online Inability to touch and test products before purchase – 42% Pricing – 42% Online shopping is complicated – 24%
* A total of 2,052 respondents in the UAE were surveyed. 1,777 respondents have shopped online before, 275 have not.
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Bahrain
Fishermen vs Fishermen B
Why are some Bahraini fishermen resorting to unfair practices against their fellow fishermen? ahrain’s fishermen have recently experienced a blocking off of the sea waters which does not allow them to fish. This hindrance in fishing is caused by some local Bahraini fishermen who are using pipes, tyres and sticks to obstruct successful fishing for others. The Fishermen’s Protection Society has spotted many small boats leaving from Hidd and near the old Muharraq Bridge carrying young men armed with pipes and tyres. The fishermen practicing unfair fishing mark the waters most rich in fish as “theirs” and temporarily take control of that area. This practice of restricted fishing is probably due to the dwindling fish stocks in the Bahraini waters; a problem that the whole of the GCC region is facing over the past few years. Most of the GCC states have experienced similar encroachment of fishermens’ rights both by local and non-local fishermen, for instance, desperate Bahraini fishermen have entered the territorial waters of Qatar, the UAE and Saudi Arabia in the recent years. Who is to be blamed for the deteriorating fish supplies? As per Bahrain’s Fishermen’s Protection Society, the increasing land reclamation, industrial pollution and over fishing has made the Bahraini fish supplies even lower this year compared to previous years. Approximately 3 million tons of sand is taken for construction purposes from Bahrain’s waters each year that disturbs the fish’s natural habitat. Fishermen are also catching immature fish before they
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get a chance to reproduce, further adding to the depletion of fish stocks. Overfishing alters food-chain dynamics and hence the marine environment, a decline in the number of large sharks, for example, can cause an increase in the species of smaller fish which are otherwise eaten. Even though the problem of low fish stocks has been there during the past few years, it has gotten to serious levels at this time of the year as it coincides with the no-breeding season - most fish breed in hot weather. Livelihoods of many local Bahraini people are at risk due to the low fish stocks coupled with unfair fishing. Many are forced to look into other business options. The increasing level of urbanization near coastal areas has also left them vulnerable as it provides them with fewer places to practice their trade. Moreover, since last year when the authorities introduced maps demarcating fishing and shrimping sites, local fishermen started indulging in other activities to make a living as business opportunities for them diminished as compared to previous years. Even though most of these fishermen are left with a lower pay alternative, some of them are lucky enough to get better jobs. “We conducted a study which stated that out of the 400 fishermen in Bahrain about five percent had taken up other lucrative jobs to support their families,” said Mr. Ebrahim, based on the figures revealed last year by the Fishermen’s Protection Society. It is clear to many observers that
there is much more to it than the issue of local fishermens’ rights and security. It would help if the fisheries managers and scientists study fish and their harvest, and regulate both so that overexploitation and undesirable ecological impacts are avoided. It would also help if the government knows how to prioritize between industrial/commercial expansion and protection of marine life; definitely a hard call for the authorities. Fisheries have great importance and play a vital role in the economic, ecological and cultural spheres of Bahrain. The Bahrain Coastguards have recently been ordered to make sure that such practices are brought to a halt with the help of a new radar system that is now being implemented to help monitor regional waters and assure greater security. Gulf Insider called the Bahrain Coastguards a few times to get first hand information about the radar system, unfortunately we were not able to get their attention. GFI
Even though most of these fishermen are left with a lower pay alternative, some of them are lucky enough to get better jobs.
Traditional Chinese Medicine and Acupuncture offers relief from chronic pain
Dr. Lucy Liu
Qualified practitioner in traditional Chinese Medicine and Acupuncture
Also now available chiropractic and medical massage
Dr. Liu and her team offer specialist treatment for conditions such as: • Diabetes. Weight Loss. Migraine. Insomnia. • Strokes & Paralysis. Infertility. Impotence. Prostatis. • Stress/Nervous System problems. • Poor circulation. Rheumatism. Arthritis. Varicose Veins. Gout. • Joints, Neck, Shoulder & Lower Back problems • General pain relief. For appointments & consultations please contact:
1766 4088 or 3964 1997 Direct line: 3777 8922
Under the medical supervision of Bahrain Medical Group
A fusion concept based on the original blending of refined cuisine and creative Japanese gastronomy in a relaxe and sophisticated atmophere. Maki restaurant offers a wide range of exquisite and innovative plates.
Kuwait | Bahrain | Beirut
Bahrain World Trade Center, West Tower, King Faisal Highway, Manama, Kingdom of Bahrain @makirestaurant
@makirest
Tel: +973 1752 2733 or +973 3699 9102 www.olivermaki.com
Cars Bentley GT
Bentley GT Speed Nick Cooksey compares Bentleys new V12 Speed against the current V8.
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ot so long ago, Bentley and Rolls Royce were the same company and there was zero difference between their car models beyond which brand name you wanted to show off to the world. The cars rolled off the same production lines, were built by the same craftsmen, and sold for the same price. All that changed when the company was split up, and these historic brands some time ago have gone off in their own directions, with Bentley going back to its luxury sporting heritage roots, all be it in a high tech way. Enter Bentley’s new GT Speed. The
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company has inserted a more powerful V12 engine into an existing chassis and upped the horsepower from 500+ to 600+. To make sure this massively powerful, massively sized luxury monster can stop safely they have also fitted the world’s largest carbon ceramic breaks to it. Trying to assess the capabilities of this amazing car on the roads of Dubai is a challenge, as Dubai is the Middle East capital for speed cameras and the authorities seem to be placing ever more of them on every major road. But, on stretches of long empty road where these electronic eyes have not yet been
fitted I was able to enjoy furtive bursts of speed and propel myself quickly up to 240kph with plenty more speed to go if I had dared. This is a big car to have just 2 doors, but the doors are very big. In fact everything is big about this motor including presumably the personality and bank balance of the lucky owner. Unlike most cars that I drive, which if not scrapped in a decade will no longer be of any great value anyway, I was very aware that the Bentley will probably outlive the driver and in years to come will continue to be enjoyed by dedicated motorists not even born yet.
Bentley GT Cars
This is a big car to have just 2 doors, but the doors are very big. In fact everything is big about this motor including presumably the personality and bank balance of the lucky owner. Did I have any complaints? Not really. Fortunately I was mostly on fast roads so didn’t need to attempt to park it in a tight space or drive in congested narrow street so was spared that potential ‘horror’. The indicator arm seems to slightly get lost behind the gear paddle and would take a little getting used to, but I should be so lucky to have enough time with this lovely car for that. Oh yes, when you floor the accelerator the speedo flashes “Safety Warning” which seemed a bit nannyish, particularly bearing in mind that the Bentley is otherwise making a statement that the driver is an elite alpha male. Ok, so women can also buy this car, but to most people this is definitely seen as a man’s car and any woman seen driving it people will assume she’s borrowed it from her husband. Not meaning to sound sexist, but just being honest.
I drove the V8 immediately after the GT Speed, an amazingly powerful car in itself, yet I couldn’t help notice how much more energy the Speed has thanks to the extra 20% of power it has under the bonnet. That said, the roaring sounds of the V8 engine is unbeatable and I soon got over it being slightly less powerful while I had an amazing time cruising around in convertible luxury enjoying a perfect Dubai winter’s day. For most people, the 500+ bhp V8 engine will be more than enough. My verdict: if you have the money and want something very big, very special, that is more than just a car, and that will last you forever – buy either one! GFI
To arrange your own test drive contact Ahmed Zayani & Sons W.L.L. Tel: + 973 1723 8822
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Cars McLaren
McLaren MP4 12C Spider Review by Nick Cooksey
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k let me say straight away that this car is something else. In many ways it’s the perfect sports car. Its carbon fibre chassis and many other high technologies keep the car strong and light, while a massively powerful Twin Turbo 3.8 V8 engine knocks out 610 bhp which is similar to the substantially heavier Bentley that I also drove this month. This means that not only is this car fast, but it’s Ducati Superbike fast! I drove this beauty from zero to 100 kph in 3.1 seconds, but I didn’t stop
there and kept my foot on the accelerator hitting 200 kph in 9 seconds. The car was solid and perfectly balanced throughout. Driving it at night with the wind in my hair felt great. This is a truly beautiful car. Now being an all out super fast monster is great in itself, but what makes this car incredible is you could use it as a daily driving car. It’s a savage beast when you need it to be, but you could also drive it to the shops as comfortably as any other car. The term Spider by the way simply denotes that the roof opens up allowing
you to change it from a coupe to enjoy a convertible experience. It weighs about 40 kg more than the coupe because of this, which really is no big deal bearing in mind all its horsepower under the hood. The Spider is just as rigid as the coupe and despite costing more, in the scheme of things I have to wonder why anyone would chose to the coupe over the Spider. GFI
For more information, visit the McLaren showroom in Manama or contact Tel: + 973 3944 3556 or 3777 0682
Jaguar registers highest regional sales Jaguar’s 12MY line-up growth in four years boosts sales by 21 percent
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uxury automotive manufacturer, Jaguar, has announced strong regional sales growth for the first half (H1) of its 2012-2013 fiscal year, that is, the period from April 2012 to September 2012. Jaguar’s sales performance in the Middle East and North Africa (MENA) region reaffirms the importance of this region to the brand – the fifth largest market for Jaguar in the world. Jaguar sales in the Middle East and North Africa (MENA) region went up by 21 percent in H1 (April to September 2012) compared to the same period in 2011, while sales in Bahrain increased by 14 percent against the same period last year. The strong growth in sales in Bahrain was primarily led by the XF, a sports car with luxury saloon features and the XJ, a luxury car with exhilarating 44
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power. It was the Jaguar luxury saloon XF that hit a record with a sales rise of 38 percent during this period as compared to the same period last year. Commenting on the successful first half of the fiscal year, Robin Colgan, Managing Director of Jaguar Land Rover Middle East and North Africa, said: “This performance confirms that demand remains high for our current line-up of vehicles, and with the introduction of new products like our 13MY Jaguar vehicles and the much anticipated F-Type, I am confident we will continue to experience strong growth.” Considering that the introduction of the 13MY line-up has already attracted a positive response from customers in the region, Jaguar sales in Bahrain look to remain strong for the second half (H2) of the 2012-2013 fiscal year. GFI
in the MENA region and 14 percent in Bahrain
Dubai - Underwater Hotel
Dubai to have the world’s largest underwater hotel
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he hotel is the brainchild of Polish company Deep Ocean Technology, assisted by Swiss firm BIG InvestConsult AG. The bizarrely shaped building comprises two large disc-shaped sections, connected by a long narrow shaft containing stairs and a lift. Five legs will separate to two main components, one of which is located underwater, when it is built. Guests will be able to stay in the hotel’s 21 rooms, designed to ‘integrate with the underwater world as closely as possible’. There will also be a dive centre and an underwater bar. The hotel designers say that its modular design means it is transferable and can be moved in case of environmental or economic concerns. The upper pods are also buoyant
and detachable from the main building, doubling as lifeboats, if the hotel is struck by a natural disaster. Bogdan Gutkowski, President of developer BIG, said: ‘Water Discus Hotel project opens many new fields of development for the hotel and tourism sector, housing and city sector in the coastal off-shore areas, as well as new opportunities for ecology support by creation of new underwater ecosystems and activities on underwater world protection. ‘Additionally we would like to create here in the UAE the International Environmental Program and Center of the Underwater World Protection - with Water Discus Hotel as a laboratory tool for oceans and seas environment protection and research.’ Tourism: Bogdan Gutkowski, President of developer BIG, said:
‘Water Discus Hotel project opens many new fields of development for the hotel and tourism sector’ GFI
Read more: http://www.dailymail. co.uk/news/article-2268718/Roomsspectacular-sea-view-Dubai-unveilsplan-worlds-largest-underwater-hotel. html#ixzz2JAy7vifT Follow us: @MailOnline on Twitter | DailyMail on Facebook
Images: Deep Ocean Technology
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Art Nature Lover
Artist Madhvi Dilip recently exhibited her work at Al A’ali Shopping Complex.
Nature Lover Turned Artist
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adhvi Dilip is a passionate Indian artist and alumni of ICS, London where she completed her Masters in Fine Arts in 1997. Born and brought up in Bahrain, she has always been inspired by the rich culture of the island. As a thorough nature-enthusiast, Madhvi’s work reflects her love for flowers, still-life and landscapes. “I started painting at an
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Madhvi Dilip
early age,” she shares, “I express myself with colours and even in life’s toughest moments my creativity is what keeps me going. Colours inspire me, uplift my soul and bring out the best in me.” Madhvi mostly works with oil paints, watercolours, ink, charcoal, pastels, acrylics and fabric paints. The fine lines and curves exposed in her art work add a lot of depth to her creativity. Her first solo
Nature Lover Art
art show followed the theme Nature’s Glory and was held at Linas Café in the Moda Mall. She has participated in a number of art exhibitions and has also been awarded a recognition title “Save the Environment” from BAPCO for her work. Apart from creating and practicing art, Madhvi also conducts art workshops and classes for children and adults both at her premises and the Chinmaya Mission Society in Manama. “Never give up and keep practicing,” advises Madhvi, “someday you will surely reach your goal.” GFI
To participate in workshops or order artwork call Tel: +973 39584936 or Email: madhvid11@gmail.com Like Madhvi’s art on Facebook: Madhu’ Art and to browse through her creations visit www.artslant.com
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Technology Cameras
Tech picKs Latest gadgets and tablets Its time to up-date your gadget list Samsung Galaxy Note II
Samsung Galaxy Camera
Samsung, a big name in cameras and an even bigger name in Android devices brings you the first of its kind Samsung Galaxy Camera. Featuring a 16.3megapixel sensor, it offers easy photo-sharing options using Wi-Fi and other third-party tools – Facebook, Instagram, Twitter, Dropbox. What makes this gadget stand out is its photo quality that is way better than smart phone resolutions. A fantastic 21x zoom and 4.8 touch screen with HD LCD display enhances the photo-shooting experience. Video-shooting is also possible; the camera can record up to 1080p at 30 frames per second. Editing programmes – Photo Wizard and Video Wizard are available for simple edits. User-friendly and stylish, this is a must-buy gadget this year! Price: BD210
TDK Q35 Wireless Charging Speaker
TDK’s latest wireless speaker offers great sound quality and can also be used as a charging device for any unit which is compatible with Qi technology. To charge it, you just have to place the unit on top of the wireless cube. Its Bluetooth v2.1 technology feature allows music to be played even without wired connections. With a rechargeable battery offering good six hours of portable audio, this gadget is ideal for music enthusiasts. Price: BD220 48
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The Samsung Galaxy Note II has a 5.5-inch screen with 720p display. Featuring a 1.6GHz and 2GB RAM, the note comes in three memory options – 16GB, 32GB and 64 GB. It has an 8-megapixel rear snapper and a 1.9-megapixel camera in the front. Excellent connectivity GPRS, EDGE, HSDPA, HSUPA and LTE, Wi-Fi, Wi-Fi Direct, Wi-Fi hotspot, dual band, Bluetooth 4.0, NFC and MicroUSB port, latest software and a user friendly interface makes this gadget a great buy. Price: BD220
Apple’s iPad Mini
This compact alternative to Apple’s traditional tablet line-up has a 7.9” 768 x 1024 pixel panel, a 5-megapixel rear camera and a 1.3-megapixel front snapper. With 7.2 mm thickness only, this one’s a slick piece with a design that is more like the iPhone 5. Excellent connectivity, good memory and a decent battery life puts the iPad Mini on our list. Price: BD125 (for 16GB Wi-Fi only version)
Feature Lifestyle Luxury
Lifestyle Your favourite luxury brands bring you the best in fashion!
For Him… ALDO’s Saradella – Handbag Made of milled aniline leather and hand-waxed on the edges to withstand any rough use, this handbag is your perfect companion to work. The Saradella bag is also available in cognac colour. Calvin Klein – Claren Sneaker Put your best foot forward with CK’s stylish sneakers. The two-tone leather and nylon construction will keep your feet warm and comfortable.
Prada – Saffiano Leather Card Holder This bright red card holder by Prada is the right accessory if you need to step up your formal look for the season. Choose from a variety of colours.
DKNY City DKNY City is a spicy - woody fragrance. The top notes include green pomelo, coriander and white pepper. Sage, vetiver and mahogany form the base of this perfume.
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Last Word
War Against Spammers
Yields Results Organizations specializing in IT security have succeeded in closing down the latest version of the notorious Hlux/ Kelihos botnet.
A
s a result, the proportion of spam in email traffic dropped by 3.5 percentage points and averaged 75%. In absolute terms, this translated into a 20% fall in the amount of spam compared to February. However, the decrease in the amount of unsolicited email did not affect the level of danger inherent in spam: the same proportion of malicious files (2.8%) was found in email traffic as in the previous month. For the third month in a row the
In order to spread malicious code via email, spammers need to keep inventing newer and more resourceful social engineering scams. 50
Gulf Insider February 2013
US topped the rating of email antivirus detections: the share of Mail Anti-Virus detections increased by 1.7 percentage points in the US compared to February and accounted for 14.7% of the overall total. Australia came an unexpected second with 12.4%, having doubled its result for February (an increase of 6.9 percentage points). As was the case in February, Hong Kong occupied third place. In order to spread malicious code via email, spammers need to keep inventing newer and more resourceful social engineering scams. A mass mailing detected on 20 to 23 May offered a prime example of this. The messages in the mailing mimicked a confirmation message from an airline’s online ticket reservation system that referred to a flight scheduled for 20 March. A link in the message led to the installation of a Trojan program that then downloaded the infamous ZeuS/ Zbot, a malicious program is designed to steal personal data from users of online payment services. The most popular themes exploited in spam throughout March were St.
Patrick’s Day, Easter and the launch of iPad 3. It should be noted that the topic of holidays was actively exploited for commodity advertising, whereas the new Apple iPad was used as bait. Promising a free iPad or iPhone is an old, well-known trick which is obviously still effective because the fraudsters continue to utilize it to drag users into pyramid schemes or trick them into clicking on phishing or malicious links. A month ago the recipients of these mailings were mainly being offered an iPad 2 or an iPhone 4S – now it is the turn of iPad 3. “March did not bring significant changes to the top rated sources of spam. The first three places were occupied by India, Indonesia and Brazil,” says Maria Namestnikova, Senior Spam Analyst at Kaspersky Lab. “Although the proportion of spam may have decreased slightly, it is still dangerous and the distributors of unsolicited messages are resorting to increasingly sophisticated scams.” GFI
The full version of thespam report is available at: www.securelist.com
B.I.C.
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