Gulf Insider March 2013

The multi-award winning Arabian magazine

Gulf Financial Insider

GulfInsider The Arabian Review

Issue 98

Bahrain

Pain or Gain?

Middle East

The Top Six Brands

Bahrain Real Estate Review

Volkswagen Ice Drive Arvidsjaur, Sweden 44

Interview -

HE Reem Al Hashimy, UAE’s Minister of State

VIVA celebrates

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3 Year Anniversary rd

Enterprise moves to second year of operations...

Interview with Mr Nezar Banabeela, Chief Wholesale & Enterprise Officer, VIVA Bahrain.

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Cover Story

March 2013 more inside...

Interview with Chief Wholesale & Enterprise Officer, VIVA Bahrain

Nezar H. Banabeela

Contents

44. Cars

Volkswagon Ice Drive

22

32

Pain or Gain?

Real Estate Review

Bahrain

26

Middle East

Six Middle East Companies Influencing the World

28 GCC

GCC Economic Developments & Outlook 2013

Bahrain

35

Abu Dhabi

Residential Market

46. Art

Inspired by childhood memories

48. Tech Picks

Your ultimate gadget guide

42

49. Lifestyle

Social Media

The 5 mental attitudes

Feature

Luxury fashion for the modern man

50. Last Word

GulfInsider

Gulf Financial Insider

“A gem cannot be polished without friction, nor a man perfected without trials”. – Seneca

Publishers Nicholas & Rebecca Cooksey Editor in Chief Nicholas Cooksey

Comments...

Layout Designs Dhanraj S Admin & Finance Nikesh Pola

The best place to be born The Economist recently published a report that ranked countries based on a variety of factors-- long-term economic prospects, safety, quality of family life, etc. to conclude where children born in 2013 have the best chances of living a prosperous life. Then they compared their 2013 rankings against a similar survey conducted in 1988. The results are intriguing. Twenty five years ago, the United States topped the charts as the best place in the world to be born. France, West Germany, Italy, Japan, and the UK were all in the top 10. Today, the US and Germany are tied for... 16th, well behind Singapore (#6) which was in the bottom quartile 25 years ago, and Taiwan (#14) which wasn’t even on the list back then! Japan, France, and the UK come in at 25, 26, and 27 respectively in 2013, behind, for example, Chile (#23) which was also not ranked in 1988. It’s all a prescient reminder of how things change; this has been a constant throughout human history. There’s alway been some tribe, kingdom, empire, country, etc. that’s the biggest, wealthiest, most powerful in the world. And it’s constantly changing. Countries rise, fall, and in some cases, cease to exist altogether. This is difficult for many people to accept. When you grow up believing that your country is ‘the best,’ it’s easier to ignore reality than acknowledge facts.

Business Development Manager Sueallen Menezes

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Ministry of Information approval no. TFI-431© Copyright 2009. Arabian Magazines is a division of CG Arabia WLL. No part of this publication may be reproduced in any manner without the written permission of the publisher. All Rights Reserved. Views expressed in this magazine are not necessarily those of the publisher.

Issue 98

Bahrain

Pain or Gain?

Middle East

The Top Six Brands

Bahrain Real Estate Review

*Articles by these correspondents are the copyright of

Volkswagen Ice Drive Arvidsjaur, Sweden 44

Telegraph Media Group, 111 Buckingham Palace Road, London SW1W 0DT, England.

Interview -

HE Reem Al Hashimy, UAE’s Minister of State

VIVA CELEBRATES

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ENTERPRISE MOVES TO SECOND YEAR OF OPERATIONS...

Interview with Mr Nezar Banabeela, Chief Wholesale & Enterprise Officer, VIVA Bahrain.

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MEDIA AGENCY OF THE YEAR & MEDIA NETWORK OF THE YEAR AT MENA CRISTAL 2012-2013.

Congratulations to our clients and the Mindshare team.

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Send your views to gulfinsider@ArabianMagazines.com The multi-award winning Arabian magazine

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Issue 97

Bahrain | Dubai Market View

Bahrain

New Labour Law hits Private Sector

‘Arab Spring’

Exploited and Misused

Bahrain Tops in Economic Freedom

30

Bentley GT Speed

42

Interview with IMF Managing Director

Christine Lagarde Bahrain BD2

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Holiday Hullabaloo

The article on Bahrains’ new labour law really intrigued me. Does the private sector or for that matter even the public sector need so many holidays! I’m a 21-year old doing my internship with one of the kingdom’s big brands. I look forward to going to work every day because there is so much to learn. We need to drop the laid-back attitude! It’s not just about contributing to the organisation or the economy but also our individual growth and self-actualisation goals.

Sumaya

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Esprit de Corps?

I agree with Christine Lagarde that Spain needs to take up the bank bailout and speed up the revival of its credit rating before the situation gets worse.

It’a all about team work and other European countries need to be supportive of this. Like renowned economist John Nash put it that the best result will come from everyone in the group doing what’s best for himself and the group! A myopic vision won’t help. Financially uplifting each country will do the Eurozone as a whole, good in the long run.

Adel, Riffa

Issue 96

Destination Valentine’s!

McLaren Spider: Beauty & Beast

Reef Arabia Rehabilitating the Gulf’s Marine Environment

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Issue 95

Dubai

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Market View 2012

MENA

Abu Dhabi

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The $16m Firework Party

Kalpana, Juffair

Rebel Dashti, Arad

Market View

Wealth Insights Page

I just can’t get over the Mc Laren Spider – what a car! It’s got style, power, comfort...

I’ve never really driven it and so was surprised that the convertible can very well be used for routine commutation. Now that makes this machine ‘the complete sports sedan’! I’ve already booked my Spider – my birthday gift to myself…call me spoilt but I’m just a car enthusiast!

I really loved the concept of Dubai’s underwater hotel. It looks so beautiful and romantic! Though not uncommon, the fact that the upper pods are buoyant structures is commendable – really intelligent engineering. I hope this project is completed soon. Dubai is a great tourist destination and I really look forward to my stay at the hotel.

Kuwait

Would you like to be a PUBLISHED Photographer?

Interview

VIVA Bahrain

If your photos of Bahrain and the region are good enough, they could be published in Gulf Insider/Areej/Bahrain Confidential magazines. Each month we publish the most impressive images we receive and give full credit to the photographer.

New Report Reveals Why

MANAMA

is a better city than Milan, Lisbon, Istanbul and Moscow Bahrain BD2

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Images must be at least 1mb and can be e-mailed to submissions@ArabianMagazines.com with the subject ‘PHOTO’.

Bahrain

Gulf Round-up

Bluewaters (Photo: Goverment of Dubai Media Office)

Travel agents struggle with Bahrain Air fall out The privately operated airline which was Bahrain’s second national carrier shut down its operations, citing political unrest in the Gulf nation and hinting at the government’s decision not to bail them out.

According to a statement on its website, passengers booked with the airline will not receive a refund on their tickets.

“If you have not completed your journey, you will regrettably have to make your own arrangements and purchase new tickets if necessary. As such, no employee of Bahrain Air can provide refunds or provide you with an alternative airline ticket. This process is now governed by Bahrain’s bankruptcy laws in accordance with Bahrain’s Commercial Companies Law. Nabeel Kanoo, director, Kanoo Travel said he wasn’t sure exactly how many of Kanoo’s client’s had booked tickets with Bahrain Air but said: “we are hoping the numbers aren’t many.” – ARABIAN TRAVEL NEWS

Meraas to start $1.6bn Bluewaters islands in April Meraas has said that it plans to build a $1.6bn (AED: 6bn), mixed scheme off the coast of Jumeirah Beach Residence known as Bluewaters, from April.

The firm presented the project to Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum, who approved plans for its construction. The project includes a large leisure element, including the world’s largest ferris wheel.

The wheel, known as Dubai Eye, will cost $272m (AED: 1bn) to build and will be a focal point of the attraction. It will be 210m high and offer views along Dubai’s coastline of the Palm Jumeirah, Burj Al Arab and the Burj Khalifa.

The firm has forecast that the project, which will have separate entertainment, retail, residential and hospitality zones, will attract more than three million visitors a year. It will be connected directly to the mainland from a roadway linking from Sheikh Zayed Road. The project will also have its own monorail system linking from the metro station, and a pedestrian bridge to Jumeirah Beach Residences’ beachfront. A cable car will also bring people to the entertainment piazza.

Meraas Holding chairman Abdullah Al Habbai said: “The ‘Dubai Eye’ will serve as yet another iconic structure and will distinctively dominate the Dubai skyline. We are confident ‘Bluewaters’ will develop into a key attraction for the UAE, further enhancing Dubai’s status as the preferred global entertainment and retail hub.” – CONSTRUCTION WEEK

Kuwait to investigate allegations Kuwait is scrutinising the award of the Subiya Causeway and the Al-Zour North Power Plant, worth a combined $5bn, to foreign contractors after its parliament voted to probe irregularities in the tenders, according to Middle East Online.

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Gulf Insider March 2013

In response to a number of MPs who claimed political bargaining and secret deals were involved in the contract awards, Kuwait’s political assembly agreed to form a special panel to investigate the matter.

Twenty-three MPs voted for the proposal, which was rejected by the government, against 20 members who opposed it.

The five-MP panel must now conclude its probe within three months.

Minister of Electricity, Water and Public Works Abdulaziz Al Ibraheem warned MPs that the probe panel will send a “wrong message to investors”, especially to foreign contractors.

Several projects and developments have been stalled in Kuwait in recent years as political parties have argued about their implementation – CONSTRUCTION WEEK

Business News

Middle East travel sector on ‘tipping point’ from offline to online The founder of Singapore-based travel search site Wego has said that the region’s travel sector is right on the “tipping point” between moving from an offline industry to an online one.

Ross Veitch, who this month opened a new office in Dubai’s Internet City said this was the perfect time for Wego to enter the Middle East market for as predicted “the next 18 -24 months” would see a huge shift towards the online booking.

“I think it’s inevitable that a large percentage of travel being booked offline today will inevitably migrate online as it has done in other markets,” said Veitch.

“The big question is how fast that transition happens and it is part of our mission to accelerate that process.”

“I think it’s going to flip very quickly. In the next 18-24 months you will see a large shift. A lot of people still seem to be hesitant to use credit cards online but I think that will change very quickly – we’ve seen it happen in other markets.

Look at India; it’s a great case study of how the business went from offline to online almost overnight.

“In most markets it seems to go along relatively slowly and steadily and then it reaches a critical mass and I think we will soon see that happening across the Middle East. Airlines, hotel chains, they are all investing a lot in their e-commerce strategies; and people like us entering the market offering a well-designed service, this will help too.

“We think we are here early enough; we are here for the duration and we are going to do our bit to take the market from offline to online.”

Asia-Pacific based Wego - which uses metasearch technology to search the internet across hundreds of travel websites for the best rate - adds to a growing list of international online travel companies eager to grab a slice of the burgeoning online travel sector in the Middle East by launching Arabic websites tailored to the local market.

Veitch said he anticipated more international players would enter the region which would spur the growth of the market.

“You’ve seen some of the big Indian OTAs investing here – Cleartrip is very visible in Dubai as is Makemytrip - both are great companies and very well funded with great technology.

They willl help catalyse the market.

Veitch added that the growth in online booking was also being spurred by a younger generation of travellers who want to save money.

“There’s a generational shift that’s happening too – it seems that in this part of the world, if you’re from a certain generation if you want something done you ask someone else to do it for you. So you call your travel agent, or your assistant who calls your travel agent. For younger people who arevery familiar with the technology and being in control – picking their seat, shopping around and making sure they’ve got exactly what they want – online booking is more natural for them.”

“Most importantly you are going to save money if you come online – if you come to us to search a hotel room you are searching 100 different websites. You see the whole marketplace.

If you walk into an offline travel agent you would trypically get access to the rates from one chain that he’s negotiated.”

- ITP

UAE Petrol is Most Expensive in GCC The UAE has the most expensive petrol in the GCC, a study by Kuwait’s Organisation of Arab Petroleum Exporting Countries (OAPEC) reveals. The report claims this is explained by suppliers importing gasoline from other countries that follow market prices, despite the fact that the UAE has the fourth-largest oil reserves in the world.

In the UAE, regular petrol cost AED 1.52 per liter and premium was AED 1.78 per liter at the end of 2011. In comparison, Saudi Arabia, the world’s most significant oil exporter, priced petrol at 45 fils for regular and 60 for premium in the same time period. Qatar petrol cost 70 and 80 fils respectively in Qatar, while prices were AED 1 per liter in Bahrain and AED 1.2 per liter in Oman.

The UAE was also found to contain the third most expensive petrol in the Arab world as a whole, behind only Syria and Tunisia. In Syria, the comparative cost was AED 2 and in Tunisia it was 2.56. NUQUDY

Gulf Insider March 2013

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Bahrain

Ransom malware head arrested in Dubai

A Russian man accused of being a key figure behind the notorious and hugely successful Reveton “police ransom” malware, which has successfully blackmailed thousands of PC users across the world, has been arrested in Dubai, Spanish police announced.

Unpicking exactly what has happened will be difficult – such gangs are global concerns with multiple outlets – but the arrest could be of major significance.

According to security firm Trend Micro, which said it had collaborated in tracking down the perpetrators, police traced the unnamed man through its payment channel which funnelled through Spain.

Payment is the one weakness for ransom malware, which depends on typically blackmailing its PC victims into sending money in order to have control of their PCs unlocked and ‘returned’ to them.

Reveton’s attack method was to convince infected users that they had been detected as having committed a non-existent computer crime and that they should pay a fine to a police force localised to the victim’s home country.

Failure to do so would render the PC unusable or make it impossible to access files bar the ability to open a web browser in order to pay the ransom.

This was accepted in PaySafeCard/ UKash vouchers, which were, Trend said, laundered into real cash before being forwarded to the arrested man’s gang.

Police said the Spanish operation netted one million euros per year, likely only a fraction of what was being made globally. A further ten people associated with the operation were also picked up, including Ukrainians, Russians and Georgians, police said.

“These arrests are a tremendous result from the ongoing work and collaboration between the Spanish police and Trend Micro’s eCrimes unit, which works extensively and collaboratively with law enforcement authorities across the globe,” said Trend Micro.

The exact number of victims will likely never be known – and new victims are still being claimed by Reveton even now – but must run to hundreds of thousands

at a minimum.

In August, the FBI warned US consumers about Reveton after being “inundated” with reports of infections.

Ransom malware has grown into a major headache for police forces, partly because it has affected the SME sector especially badly, sometimes in conjunction with targeted attacks on small businesses, including one small Australian medical centre that had its entire database encrypted.

Exactly how many crime hubs are using the ransom technique is hard to know; Reveton is certainly not the only such campaign out there. A recent Symantec report estimated the profits from ransom attacks as being huge.

It is unlikely that the arrests will make more than an important dent in both Reveton or ransomware in general.

“Before we all start celebrating, it must be said that in our opinion, based on our research of the Police Virus [Reveton], there is more than one group behind the attacks,” commented Luis Corrons of antivirus firm Panda Security.

“We’ve reached this conclusion after having studied multiple variants of this malware over time and having detected numerous striking differences among them.” - CNME

GCC to invest $36bn in port development GCC countries are allocating $36bn to further develop their port infrastructure amid increasing foreign non-oil trade volumes.

Saudi Arabia is going ahead with their port infrastructure development with more than $750mn allocated to Dammam’s King Abdul Aziz Port.

The plan includes the launch of a second hi-tech container terminal in 2015 with capacity for 1.8 million twenty-foot equivalent unit (TEUs) per annum.

“The UAE, and its neighbours are fast becoming a more cohesive maritime and air trade power that will provide a vital link between the Far East and Australasia. Europe and North America; and with over $36bn investment into port transportation in some of the Gulf’s key destinations, the future potential for trade growth is unlimited,” said Chris Hayman, chairman of Seatrade.

The Jizan Economic City project will also include port infrastructure plans while the north-western port of Dihba

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Gulf Insider March 2013

will get a new $46.4mn container terminal. Two additional terminals, valued at $38.4mn will be constructed at King Fahd Industrial Port in Jubail while Jeddah Islamic Port is forecasting an average increase of 10.9% through to 2016.

Against this backdrop, the International Association of Ports & Harbours (IAPH) will meet in the UAE capital Abu Dhabi from March 19-20, 2013, for the third annual edition of the World Ports & Trade Summit at the St Regis Saadiyat Island Resort. – BIGPROJECT

Business News

Lebanon recorded less property deals by foreigners in 2012

Dubai’s new boom assumes short memories Dubai has rediscovered its appetite for grand designs. A replica Taj Mahal four times bigger than the original, the world’s biggest Ferris wheel, several new mega-malls, and over 100 new hotels are amongst a raft of extravagant projects aiming to boost tourism in the emirate. But lingering debt woes from its last boom-and-bust cycle should hopefully reduce the risk of runaway spending.

The strategy isn’t quite a repeat of the one that led the emirate to the verge of bankruptcy in 2009, when Dubai was left hanging by a debt-fuelled real estate bubble and a series of high-profile overseas acquisitions at aggressive valuations. The economic fundamentals have improved. While residential and commercial real-estate prices remain well below their peak, there is room for new investment in retail and tourism. Hotel occupancy rates were at 90 percent last year, says Ernst and Young. Shopping malls in central areas are packed. New Bollywood theme parks and an expansion of giant Chinese malls will support the emirate’s push to woo more visitors from Asia and further align its economy to fast growth markets the east.

Dubai is drawing on its relative strength in infrastructure and as a regional safe-haven. The city-state currently enjoys around 10 million foreign visitors in a year, five times its population. Tourist numbers could grow substantially if Dubai can convince a larger chunk of the 58 million passengers that landed in Dubai International last year to turn their transit into a short break.

Yet Dubai has said little about how it will fund its bold endeavours.

That’s a sensitive issue. Lenders to flagship conglomerate Dubai World and property developer Nakheel have been promised 100 percent repayment of their loans but have to wait until at least 2015 to get any money back as part of a multi-billion restructuring plan contingent on asset sales which are yet to materialise.

Dubai as a sovereign only raised $1.25 billion in public debt markets last year. The island project featuring the giant Ferris wheel will alone cost $1.6 billion. Local banks are already overexposed to government-related entities. It is also unclear how readily foreign ones will lend directly to firms like Meraas Holding, owned directly by the ruler of Dubai and dubbed by analysts as “the new Nakheel” because of the multiple mandates it has won. Royal ownership, after all, provided little protection to those that loaned billions to Dubai Holding.

The region can ill afford another boom and bust. Unless memories are short, lender restraint may help prevent that this time round. – ZAWYA.COM

According to statistics published by Lebanon’s Directorate of Land Registry, the number of real estate sales in the country fell in 2012 but the total value of transactions grew by 3.8%, The Daily Star has reported. The number of transactions declined by 9.9% in 2012, following a more acute drop of 11% in the previous year, although the value of sales transactions grew by $330m to $9.175bn in 2012, compared with $8.841 billion in 2011. Sales to foreigners registered a decrease of 8.9% in the volume of sales, the data showed. – AME INFO

Egypt unveils new strategy to boost tourism Egyptian tourism minister Hisham Zaazou has unveiled plans to boost cooperation with global travel firms in a bid to revive the country’s tourism sector, Daily News Egypt has reported. The plan aims to raise Egypt’s current tourist numbers 20% to 13 million annually by the end of this year. As part of the proposed plan, the ministry is to launch joint advertising campaigns with foreign countries, as well as launching a new campaign on Google, as 30% of the search engine’s visitors use it for tourism purposes, Zaazou said. – AME INFO

Gulf Insider March 2013

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Bahrain

BBK Jackpot Winner!

Al Hayrat, BBK’s unique savings account announced the winner of the grand prize draw for 2012 – Ms Shaikha Ali Saleh. The draw was held under the supervision of Mr Yasser Buallay, Ministry of Commerce Representative and other bank officials. The winner was presented with a cheque for $500,000 by Mr A Karim Bucheery, CEO of BBK at the main branch. All investments made by 20th December 2012 were eligible for the draw. Al Hayrat 2013 scheme promises a total prize value of $2,500,000, including another draw for $500,000 in May, and an grand prize of $1,000,000 by the end of the year. Other amazing surprises to Al Hayrat customers such as the Ramadan weekly draws totalling $150,000, 20 monthly prizes amounting to $100,000 and loyalty prizes worth $50,000 are also up for grabs.

Qatar Airways: Now Closer To You Do you fly Qatar Airways? Well, then your life just got easier! The mammoth airlines in order to meet growing customer needs, has launched a new mobile application for BlackBerry, Android and iPhone handset. A new mobile website has also been introduced.

Customers can now search and book flights, check flight status and follow travel alerts all with much more ease. In addition, members of the airline’s Privilege Card Frequent Flyer Programme can fast track their booking by logging in with their membership number.

Over the next few weeks, Qatar Airways will launch services to a diverse portfolio of new routes, including Phnom Penh, Cambodia (February 20th); Chengdu, China (March 19th); Chicago, USA (April 10th); and Salalah, Oman (May 22th).

To download application visit www.qatarairways.com/ mobile and to browse through mobile website visit www.qatarairways.com

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Gulf Insider March 2013

Mindshare’s Accolade at MENA Cristal Festival Mindshare, an agency dedicated to innovative brand development for its clients, was recognised at MENA Cristal Festival for outstanding achievement in several creative campaigns. The event was held at the luxurious Mzaar Mountain Resort and Spa near the snow-capped peaks of Mt. Lebanon. This year’s theme was “The Future is Now” and was inspired by Felix Baumgartner, the Austrian skydiver who became the first man the break the sound barrier in a free-fall parachute jump in October 2012.

In addition to receiving seven awards in multiple categories at the show on February 6th, Mindshare was awarded the two most prestigious titles: “Media Agency of the Year” and “Media Network of the Year”. The awards list included Gold and Silver awards for the “Speed Personified” campaign for Nissan, Silver and Bronze awards for the Infiniti and its BCI campaigns, two Bronze awards for the campaign featuring LG’s washing machine, and a Silver award for the Nike “Sticker Wall” campaign.

Business News

Third Annual GCC Productivity Conference

Kempinski’s Accolade Kempinski Hotels, recognised Kempinski Grand & Ixir Hotel at Bahrain City Centre as the property recording the largest growth in the Middle East and Africa region in 2012 in their Global Sales & Marketing Conference last month, at Kempinski Emirates Palace, Abu Dhabi.

Since the opening of the property in Bahrain, in September 2011, the hotel has firmly established its presence amongst the other 5-star hotels on the island. The Bahrain property experienced the largest growth out of the 16 properties in operation in the Middle East and Africa region in 2012.

Building on their success in the region, the Kempinski Group have plans to expand its presence in Saudi Arabia with new luxurious properties opening in the next two years in up-and-coming key cities across the Kingdom, including Al Khobar in October 2013, Riyadh in 2014 and Jeddah in 2015.

Origin Consulting Group is hosting its 3rd Annual GCC Productivity Conference on 5th and 6th March 2013 at Bahrain Conference Centre, Crowne Plaza. The event is supported

by Tamkeen and is bringing for the first time in the Kingdom of Bahrain, world-renowned productivity expert, Laura Stack, MBA, CSP. The them of the conference is ‘Productivity & Leadership Strategy’ which is not only in tune with the current global situation but will also pave the way for proper identification and analysis of the causes of low productivity within the work force.

Chaired by speech coach and motivational speaker Mohamed Abdulla Isa, this conference promises to change our outlook towards productivity so we can become more effective with lasting results for good.

For more information email registration@origin.com.bh or call on Tel. +973 17 55 2878 or visit www.origin.com.bh

BIC set to host Formula 1 2013 Bahrain International Circuit (BIC), in cooperation with national carrier Gulf Air has begun the official 60-day countdown to the region’s biggest and most highly anticipated sporting and social event - 2013 Formula 1Gulf Air Bahrain Grand Prix.

The annual festival of top-class motor racing and entertainment takes place on April 19th, 20th and 21st at BIC in Sakhir. This will be the fourth round of the 2013 FIA Formula 1 World Championship. The all-new slogan for this year’s race is “Imagine Your Moment”. Last years event witnessed a crowd of up to 70,000 people. BIC authorities expect an even larger turnout this year.

In addition to the racing championship there will be international support races including the single-seater championship - GP2 Series. GP2 will be holding its second round of the 2013 season in Bahrain. There will be other entertainment programmes ranging from musical performances, stage shows and mesmerising acts to carnival rides, parlour games and dazzling exhibitions. Entertainers from all over the world including countries such as France, Kenya, Mexico, Portugal, Switzerland, Japan, China and India are invited.

For tickets visit www.bahraingp.com or call on Tel. +973 1745 0000 Gulf Insider March 2013

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Bahrain

Keypoint To Provide Comprehensive Solution The US Department of the Treasury and the Internal Revenue Service (IRS) issued comprehensive final regulations for Foreign Account Tax Compliance Act (FATCA), in January this year. The act was framed to address instances of tax evasion by US citizens and American passport holders who invest money abroad through offshore accounts maintained outside the US. Key point, in Bahrain has set up a specialised team for FATCA compliance lead by Mr Ranjith Kumar. The team has rich experience in business services domain and will be working with partners having expertise in technology, tax and legal domain to provide comprehensive solutions for institutions in the region.

“Financial institutions that do business with US ownership, and individuals who are identified as US persons under the act are expected to review customer information to comply with FATCA requirements,” said Mr Wajid Al-Jallad, Managing Director at Keypoint. Account holders who fail to provide such information to the financial institution will be identified as recalcitrant – a withholding of 30 percent will be applied on US source income and certain payments due to the account holder, and also payment of US source income and certain payments due to non participating financial institutions.

The financial regulations for FATCA provide additional certainty for financial institutions and government counterparts by finalising the step-by-step process for US account identification, information reporting and withholding requirements for foreign financial institutions, other foreign entities and US withholding agents. The final regulation incorporates feedback from global governments, financial institutions and industry bodies. Till date, over 50 countries are in discussion with the US authorities for implementing FATCA through bilateral agreements.

BBK Registers Growth for December 2012 BBK declared a new profit record of BD 42.4 million in 2012, compared to BD 31.8 million in 2011. Some excellent decisions were made during the year in respect of BBK’s Treasury and Investment portfolio, particularly in the case of fixed income opportunities, which resulted in remarkable growth in net interest income from investments, as well as in FX and other investment income. A number of strategic initiatives were implemented throughout 2012 including the launch of the new premium banking service, Al Wajaha. This offers a bouquet of financial privileges and unrivalled package of features and benefits specially tailored to meet the banking, travel, and lifestyle needs of BBK’s most discerning customers. Another initiative was the launch of the revamped Secura brand which offers a new range of insurance and saving products designed to meet customers’ insurance needs. Enhancement of service delivery to customers was also focused on.

Special services to cater the needs of special needs customers were launched; certified sign language speaking employees catered to hearing-impaired customers and dedicated parking and wheel chair access was made available. BBK also started SMS banking, eStatements on mobile phones and the upgrading of telebanking.

CFA Society Bahrain congratulates new charterholders at the 7th Annual Charter Award Ceremony The President and Board of CFA Society Bahrain, the Kingdom’s pre-eminent association for local investment professionals, hosted its seventh Annual Charterholder Ceremony. Mr. Khalil Nooruddin, President of CFA Society Bahrain, recognised 18 new charterholders in the presence of nearly 80 guests and society members at Bahrain Bourse premises in Bahrain Financial Harbour.

Over the last five years, CFA Society Bahrain has grown its number of new charterholders by 72%, making it one of the largest CFA societies in the Middle East region.

There are now 129 CFA members and charterholders in Bahrain, comprising portfolio managers, analysts, chief investment officers, chief executive officers, investment advisers, pension plan investment officers and senior financial consultants 14

Gulf Insider March 2013

Bahrain - eGovernment

HH Shaikh Mohammed bin Mubarak Al Khalifa, Deputy Prime Minister inaugurates Bahrain IT Expo 2012

All Set for Bahrain International

eGovernment Forum 2013

An invitation to exchange information, experiences and expertise in ICT

U

nder the patronage of His Highness Shaikh Mohammed bin Mubarak Al Khalifa, Deputy Prime Minister and Chairman of the Supreme Committee for Information and Communication Technology (ICT), Bahrain is ready to host one of the landmark events in the region.

The forum will be held from 8th to 10th April, 2013 at the Ritz-Carlton Bahrain Hotel & Spa. The event is being organised for the sixth consecutive year by the eGovernment Authority (eGA) in cooperation with Bahrain Internet Society (BIS) and Project Management Institute Arabian Gulf Chapter (PMI-AGC).

This year, the forum will comprise various themes along with two-day discussions presented by internationally recognised speakers, experts in ICT and other eGovernment fields. More than 700 global and local delegates will be attending the forum. Internationally and locally recognised companies will showcase their top achievements in the ICT industry. Some of the key topics that will be addressed at the forum will include: 16

Gulf Insider March 2013

 Innovation and Open Data  Mobile Trends  Cloud Computing and Shared Services  Social Networks  eGovernment There will be six specialised workshops animated by renowned figures from civil society organisations. The event will also witness selected winners of the eGovernment Excellence Award 2013 being honoured by HH Shaikh Mohammed bin Mubarak Al Khalifa, Deputy Prime Minister, and Chairman of the Supreme Committee for Information and Communication Technology.

This expo is an opportunity for all

attendees to enhance partnerships between various sectors; pave the way for joint venture investments between local and international companies and strengthen potential areas for joint cooperation and common interest. The forum’s core focus will be on supporting ICT initiatives, boosting related sectors as well as developing and upgrading IT aspects in the light of the recent global technological developments with the aim of providing solutions to sustain economic growth and development programmes. GFI

For more information and registration visit www.egovforum.bh or call on Tel. 8000 8001

Participants and delegates at last year’s forum

BeneďŹ t from innovative ideas that inspire Want to know about the latest in cloud computing, social media, digital innovation, open data and more? Participate in the Bahrain International eGovernment Forum 2013 and hear about it all straight from international experts.

With a series of workshops and an exhibition on the latest online thinking from the region to beneďŹ t from, prepare to be inspired at a forum that will open your mind to a world of possibilities and innovation.

8th – 10th April, 2013

|

The Ritz-Carlton, Bahrain Hotel & Spa Organized by:

Visit egovforum.bh or call 8000 8001

Co-Organizers:

Bahrain

VIVA Celebrates rd 3 Year Anniversary

Enterprise Moves To Second Year Of Operation Gulf Insider interviews Mr Nezar Banabeela, Chief Wholesale & Enterprise Officer, VIVA Bahrain.

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Gulf Insider March 2013

VIVA Bahrain

V

IVA Bahrain launched its Business Division in March last year. Since then, it has received a very good response from corporate customers across Bahrain. “Our Business Division has increased its customer base weekly,” says Mr Banabeela, who has over a decade of experience in the telecom sector and is currently managing the Wholesale and Enterprise solutions for Bahrain’s businesses and government organisations. He adds, “We had an estimate figure in mind and the actual figures have been higher than expected, which is great! Response from corporate customers usually takes longer than retail customers. Catering to the business segment needs is different from servicing retail customers. Business brands need to be more careful as, if they loose a business customer it’s usually for a good two to three years before they can be brought back on board.”

Mr Banabeela confirms that customers are driven not only by price but also by quality and brand image. How do

customers perceive VIVA Bahrain? “We provide true value to our customers,” asserts Mr Banabeela. Perhaps that’s one of the reasons why the telecom marquee had a smooth sail last year despite tight markets. “Telecom services are an essential element of business function no matter what the situations are,” he says, “so business customers don’t really stop using our services, rather they just prioritise expenses. We as a dedicated telecom service provider offer customised solutions to suit their preferences.”

Mr Banabeela told us that VIVA Bahrain educates customers about its services and prioritises getting well-informed feedback from them. At VIVA Bahrain, teams are built to offer comprehensive services to customers; this helps in building a long term relationship with them. Teams at VIVA Bahrain are well equipped with the tools to cater for various customer needs. The organisation also educates its staff by providing certificated courses which enhances their potential to meet customer demands.

At VIVA Bahrain, teams are built to offer comprehensive services to customers; this helps in building a long term relationship with them.

Tackling competition through product and service differentiation especially in the telecom industry can be quite a challenge. So how does VIVA Bahrain handle it? “It’s not something that we’ve achieved overnight,” says Mr Banabeela.

“Since the launch of VIVA Bahrain, we have managed to transform the shape of telecom industry on the island. For instance, initially there were only two submarine cables operating from Bahrain.

Today there are 13 land connections Gulf Insider March 2013

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Bahrain VIVA

due to VIVA Bahrain’s access to Saudi Telecom Company’s network.” And how does the customer see this benefit?

“There are now multiple systems and backup options which results in better resilient connectivity and higher speed.”

He further explains how today it’s not just about meeting existing demand but also creating it, based on extensive research on customer wants and needs.

Mr Banabeela offers more examples of VIVA’s achievements; VIVA Bahrain has been declared as ‘Best Service Provider’

by Bahrain’sTelecom Regulatory Authority Report 2011-12. It is also the biggest brand providing wholesale services in the kingdom and the fastest for data transfers. VIVA Bahrain serves more than 80 percent of the financial institutions in the kingdom.

We ask him about his vision for the future of the telecom industry.

“I believe there will be deeper levels of customisation, where the service providers should proactively understand, fulfill and create customer needs,” he says. He explains how, for example 20

Gulf Insider March 2013

the service provider will not just send bulk messages offering one-servicefits-all promotions; rather it will cater to customer needs on a one-on-one basis.

He also talks of how new technology encourages working from home. “British Telecom has deployed a remote worker strategy which allows employees to work from home and go to the office only when they have meetings,” he says. Not only does this give employees more freedom and a better work life balance, but it is also good for society as there are clearer roads with fewer vehicles that results in less cost for companies and reduces environmental pollution. Mr Banabeela feels that if more companies adopt this style of working then telecom companies would be operating within completely different dynamics. For instance, the design of telecom services demanded by businesses would change.

Does VIVA Bahrain see 2013 as a promising year, particularly for its Business Division services? “Despite operating in a mature market, we see that customers are constantly looking

Our operations will revolve around innovation and thought leadership, creating new solutions based on our customers’ requirements and demand generation. out for new efficient and user-friendly services,” he says. “So, I would say that this year and the coming years are going to be challenging, however, technology is changing every six months and so a major chunk of our operations will revolve around innovation and thought leadership, creating new solutions based on our customers’ requirements and demand generation.” GFI

Interview Feature

Interview with the UAE’s Minister of State

HE Reem Al Hashimy She talks about how Dubai is now bouncing back and has high hopes that a successful bid to host the World Expo in 2020 will only further the Emirates growing ambitions.

R

eem Al Hashimy: The World Expo happens in Dubai but it’s a World Expo for the world and that is an important part of what we’re trying to position. This has to be a World Expo for other nations and countries, and the business community, to come and get involved. This can’t just be about us. But even if you look at who ‘us’ is – we have over 200 nationalities living in the UAE so we’re already a very multicultural, cosmopolitan, active society.

John Defterios: It’s interesting – the Middle East and North Africa, South Asia is a market of two-and-a-half billion people. It’s something that the ruler of Dubai often talks about as marketing positioning for Dubai, but no country from that broad region has ever won an expo. So this is, I would imagine, a pretty compelling argument you’re putting forward to those that are voting.

Reem Al Hashimy: The merits of the city and the merits of the country: the strong infrastructure; the geographic positioning between east and west; the seamless operation between our port facilities and our airport; the connectivity. You really

will be able to bring people together and really do justice to the Dubai World Expo theme of ‘connecting minds, creating the future’.

John Defterios: Some would say, after the 2008, 09, 10 crisis when you had a real estate bubble in Dubai, is it necessary to make the big leap or a big pitch for something like this, for an expo? What’s the argument, the counter-argument, that you shouldn’t be spending money, and just allow a phase of rebuilding?

Reem Al Hashimy: Dubai has proven, in the last couple of years, its ability to rise above and beyond its challenges – to really show some incredible progress, incredible economic growth. Our tourism numbers are shooting; people are coming because they gravitate towards this country, and this city, that provides a value proposition that hasn’t been found in other places. But there’s something else about us John – we’re not complacent. And we want to continuously have stronger and better offerings because we also recognise it’s a highly competitive world.

John Defterios: Very interesting, in the last few years Brazil and Russia

as emerging markets have secured World Cups and winter games and summer Olympics and the rest. Is that an argument that you’re putting forward – that they’ve had their fair share and Dubai should get something on a grand scale as a city, or as an emirate?

Reem Al Hashimy: The fact that you’ve never had one isn’t enough – we believe that you also have to show what it takes to be able to deliver. And Dubai has delivered. I mean, if you look at the global mega-events that Dubai has hosted, if you look at the fact that seventy percent of Fortune 500 companies are based out of Dubai – ninety percent of which are also in the SME business – it is a very vibrant, robust and growing place. And last year John, we had more than 52 million visitors coming through Dubai Airport. So, when we think of what 2020 will offer: it will offer a diverse, exciting international profile for the World Expo visitor, but also the World Expo participant. GFI

This interview is exclusively edited for Gulf Insider, and is provided to Gulf Insider by CNN’s Marketplace Middle East.

Gulf Insider March 2013

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Bahrain

BAHRAIN; PAIN OR GAIN? I A successful National Dialogue is a ‘no brainer.’ - By Nicholas Corfe f I can compound the metaphor, Bahrain is on the cusp of a watershed, the pointy end of a defining moment. The long awaited resumption of a National Dialogue, the first after the 2011 attempt to garner national reconciliation in the wake of the events at the then Pearl Roundabout,

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remains in process, albeit shakily. But then, such bold ventures are usually difficult, more art than science, cajoling than compromise, all parties jockeying for advantage before and during the talks, and always with the threat of a walk-out by some, to heighten intensity.

Where ideological divisions are jagged,

there are bound to be tensions.

There is no hiding that Bahrain has faced tough times since the beginnings of the Arab Spring. Opposition elements were swept along by regional hype whereas ironically, if the political freedoms and social welfare support already enjoyed by all Bahrainis were in

Pain or Gain? Bahrain

In many ways Bahrain already provides broad based support for all its citizens and would be the envy of any well-run Welfare State.

place in countries like Egypt and Tunisia, there might not have been an Arab Spring at all! Bahrain’s polity needs ‘tweaking’ and evolutionary change rather than revolution, greater educational and job opportunities for Shia, especially in Government service. In many ways Bahrain already provides broad based support for all its citizens and would be the envy of any well-run Welfare State.

While the 2011 firing on demonstrators was a huge error of judgment for aside from the death toll, brought damaging international opprobrium which has lingered, and gave a huge fillip to the protest movements at home and abroad. The King’s invitation to the Bahrain Independent Commission of Inquiry (BICI) for a ‘warts and all’ investigation into events and make recommendations, was an extraordinarily brave call and muted much early criticism. The Government implemented many of the Recommendations, although not as speedily or fully as some might wish. But there is also an international understanding of Bahrain’s ‘good intentions,’ that they ‘take time,’ especially the legislative and executive processes as well as bringing attitudinal changes, such as turning a closed ‘police culture’ into a system of openness and transparency.

The Government ‘bought time’ and this left the opposition, particularly the Wefaq Islamic Society, whose participants walked out of the first National Dialogue, bereft of a positive strategy to maintain relevance. They have accepted the Rulership and no longer agitate for its overthrow. They continue to hold largely meaningless rallies in commercial areas or during so-called martyr’s funerals, which invariably lead to confrontation with the security forces. The Molotov cocktails of supposedly peaceful demonstrators are answered by volleys of tear gas, and video footage is instantly on social media sites. This led to widespread international criticism from human rights advocates, the US and UK governments, and the UN Secretary General. In the last few months, while fringe groups continue to carp, the mainstream media has largely ignored the daily inflammation in Bahrain and even the “mass demonstrations” on the Second Anniversary of the initial unrest, received scant coverage.

Wefaq has only recently condemned the continuing acts of wanton violence and property damage (but refuses to do so in the context of the National Dialogue) although some clerics and hard-line elements claim the violence will continue until “the people’s demands are met,” irrespective of the National Dialogue. Wefaq gauges that their continued ‘fighting while negotiating’ tactic, famously employed in wars in Vietnam, Iraq and Afghanistan, will keep up the pressure to win concessions. So the violence will continue especially in the lead up to the Formula One race.

But the Bahrain Government is not going anywhere, the Rulers have widespread support, the country is hardly ‘war weary’ or lacking in fundamental security and certainly not nearing a collapse of will. More-over, Gulf Insider March 2013

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Bahrain Pain or Gain?

There are numerous promising signs that some measure of economic recovery is now occurring following the ravages of the Global Financial Crisis and the 2011 events. it is backed by the Gulf Cooperation Council, politically, financially and militarily.

The edge at various rallies has become increasingly sectarian, a trait commensurate with other troubled parts of the region. There is a pungent belief that Wefaq stands for an Islamic fundamentalist agenda (especially in relation to gender divide and the role of women) not dissimilar to that practiced in Iran, which is an anathema to most Bahrainis who take pride in their open, welcoming and tolerant society. Many believe many Shia would openly support the Government if there was less intimidation and retribution by hardliners, especially within their village environment. Increasingly there are claims that hard-liners have hijacked the opposition agenda and that Wefaq carries little clout “at the battlefront.” In fact, the Molotov cocktails, increasing use of bombs and guns and the death of policemen have lost the ‘peaceful demonstrators’ some of their moral suasion and credibility.

There are a numerous promising signs that some measure of economic recovery is now occurring following the ravages of the Global Financial Crisis and the 2011 events. As a result of the $10 Billion (Over 10 years) GCC Development Program granted to Bahrain – a ‘GCC Marshal Plan’ - the country could be awash with funds which will mainly be plowed into infrastructure developments for profound long term benefits. There are investment opportunities in housing, construction, road systems, airport 24

Gulf Insider March 2013

improvements, petro-chemicals and oil derivatives, pharmaceuticals, aluminum, utilities, and tourism development.

Investment has been flowing into the industrial sector, particularly into industrial parks, with 88 new projects in 2012 worth a $1.5 billion, up from $1.28 billion in 2011. GDP growth expected to realise 3.9% in 2012, is forecast to reach 6% in 2013.

According to projections by the World Travel organisation, Bahrain’s tourism sector will contribute 17.4% of GDP in 2021, boosting its current revenue of $3.97 billion to $6.61 billion, and focusing largely on Saudi Arabian visitors, sporting and cultural tourism and Bahrain’s prominence as a ‘medical facilities island.’

Even though Bahrain’s draft 2013-14 budget projects expects returns from oil revenues based on $90 pbl (Up from $80 in 2011), it is still prudent planning price with oil currently around $112 pbl.

Furthermore, Bahrain remains the easiest regional place in which to conduct business with its largely open commercial environment, a soundly based, fairly diverse economy, and according to the Wall St Journal, ranked among the world’s Top 20 most economically free nations, certainly the most free in the Middle East. It has a well regulated Central Bank authority and a good Telecommunications authority.

Unemployment is relatively low at less than 4%. It is widely regarded as the most open and democratic country in the Gulf with constitutionally recognized freedoms, generally pro-Western

attitudes, and provides an enviable lifestyle based on tolerance and mutual respect. It prides itself as the region’s leading financial centre (banking and insurance), a role it took from Lebanon during the 1970’s-80’s Civil War, and has largely retained it ever since. It remains the leading banking location, particularly in Islamic banking.

So far, so good!

But there are also dark clouds causing anxiety.

The Budget deficit is increasing. If Bahrain is to balance its future budgets, it will need an international oil price of $122 pbl in 2013 and $126 pbl in 2014 (It was $51 in 2006). It will also need a continuation of (at least) the 50% gifting of production from Saudi Arabia’s Abu Safa oilfield, which is expected to boost its yield in 2013. Oil now provides a worrying 88% of Bahrain’s national revenue (economists had hoped it would be only 83%). In 1980, dependence on oil was 55% and in 2011, only 21%. There has been an increase in overall domestic production due to new exploration and better exploitation techniques, and while the non-oil Budget share increased with greater economic diversification in the last two years the disturbances have led to significant shrinkage.

The Government has sought to alleviate social tensions and raise living standards through greater funding of welfare programs and through increasing subsidies to maintain low food, fuel and utilities costs. It also provides free health care, education, free and low-cost housing, and generous social welfare

Pain or Gain? Bahrain

support. Domestic subsidies will cost Bahrain nearly $4 billion by 2014, a cost that the Finance Minister suggests is unsustainable given that it will raise the deficit to $18.5 billion, or 6.6% of GDP. The subsidies apply to all living in Bahrain, rich and poor, and while the Government wants to limit application to the needy, the Parliament consistently finds that unacceptable and says that the subsidies should continue to cover all Bahrainis.

Expatriates, who also benefit from the subsidies, now contribute employment and health care levees.

Currently, the Ministry for Electricity and Water is owed close to BD 200 million in unpaid fees and charges.

Other Ministries claim they are unable to undertake civic development programs due to the unavailability of foregone revenue. Work has halted on numerous road constructions and building programs as contractors are owed millions for work already done and Bahrain’s ‘Dress Circle’ of prestige office buildings and hotels around its futuristic Financial Harbour, stands largely unfinished. Many expatriates left Bahrain as work dried up and there is now a vast oversupply of both commercial and domestic properties. Some major housing and prestigious apartment developments stand uncompleted because developers used upfront payments for Ponzi-type speculation in a boom they thought ‘would never end.’ The lack of regulation and the pressure for legal challenge and litigation, especially by international creditors, has damaged Bahrain’s reputation as an investment destination

and dried up most investment in the sector.

Bahrain’s surviving airline, Gulf Air (Bahrain Air collapsed earlier this month) is losing millions of dollars annually and cannot even meet its $180 million fuel charges debt, let alone Government service charges. Continuing Parliamentary and Government imbroglios on route oversight arrangements and endemic management woes, continues to hobble Gulf Air, once the region’s largest airline, in its attempts to trade its way out of continuous losses.

The diminution of non-Arab foreign investment has been accompanied by some companies and banks retaining their offices in Bahrain, but moving some functions to elsewhere in the booming Gulf region. There is a view in some quarters that ‘good times’ may not come back, that the wave of opportunity has in fact passed Bahrain by. Other regional countries have built up their own credentials as financial centres and with their vast revenues from oil, gas, general business and their ultra modern facilities, they can offer extremely attractive terms to encourage investors.

A successful National Dialogue which genuinely addresses the grievances of all parties and which lays out a pathway for possible compromise, with change or reform as a first step, is a major requirement to ensure credibility. It will be beneficial if the acts of violence and discord cease, although the prospect is slim. While there will undoubtedly continue to be protests, it will have much greater resonance if it is conducted both

peacefully and constructively, but Wefaq has claimed it doesn’t “control the street.” Issues such as a fully elected government and electoral advancement will take time to evolve for they require a maturation of the electorate, the political processes, and confidence building in democratic institutions, to ensure that the aspiration of an eventual one-personone-vote leads neither to a tyranny of the minority, nor the majority. Nor the domination of secular politics, which for so long in its modern history, Bahrain has successfully avoided.

This round of the National Dialogue will not miraculously resolve all issues, but it can offer hope and a start, the chance to build on genuine goodwill, if that is indeed the intention of all parties to the dialogue. The politics of peaceful protest has its place in every democratically based society, but it can never be a substitute for governance reliant on properly constituted representation, the rule of law and the genuine independence of the judiciary. The National Dialogue affords Bahrain this opportunity to show that the country is united, remains a progressive, relevant and tolerant destination, a laudatory investment hub providing probity, the highest of ethical business standards, and above all, a safe, attractive place in which to live and work. GFI

The author is a former senior diplomat and political adviser with extensive international experience in strategic and parliamentary affairs, and is currently working in Bahrain Gulf Insider March 2013

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Feature Middle East

Six Middle East companies influencing the world Six companies from the Middle East – Emirates, Saudi Aramco, Qatar Airways, Etihad Airways, SABIC and Elsewedy – have featured in the Boston Consulting Group’s (BCG’s) 2013 ‘Global Challengers’ report.

T

itled Allies and Adversaries, the report identifies 100 ‘global challenger’ companies from the emerging markets that are growing so quickly that they are reshaping industries and surpassing many traditional multinational companies.

Allies and Adversaries is the fifth in a series of BCG annual Global Challenger reports identifying the fastest-growing companies in the emerging markets to help leaders and their companies capitalize on the opportunities created by these seismic shifts in the global economy.

In Allies and Adversaries, BCG finds that global challenger companies are outpacing household names in the U.S. and Europe and are having a profound impact on the global economy.

They come from 17 countries—with

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Gulf Insider March 2013

companies from Colombia and Qatar joining the list for the first time. Also for the first time, the global list includes companies from the financial services, health care equipment, and electronic commerce sectors.

In the past five years, these companies—many of them little known in the West—have added 1.4 million jobs, while employment at the nonfinancial S&P 500 stayed flat. Their average revenue was $26.5 billion in 2011, the most recent year for which figures are available, compared with $21 billion for the S&P 500’s nonfinancial companies and $20 billion for the entire S&P 500.

In the same year, they purchased more than $1.7 trillion of goods and services and invested more than $330 billion in capital expenditures.

“If ever there was a wake-up call for

Our four Middle East challengers for 2013 have equally promising forecasts, and are playing a significant role in the global economy. business leaders in the West, this is it,” said David C. Michael, coauthor of the report, head of BCG’s globalization practice, and coauthor of a new book called The $10 Trillion Prize: Captivating the Newly Affluent in China and India (Harvard Business Review Press).

“We have been monitoring the rise

Middle East Feature

In 2013, the Middle East is represented by four global challenger companies and maintains its share in the BCG Global Challenger top 100 list over previous years.

of global challenger companies for nearly a decade, and the ambition of these companies—what we call the accelerator mindset—has never been stronger.”

Global Spotlight on the Middle East

In 2013, the Middle East is represented by four global challenger companies and maintains its share in the BCG Global Challenger top 100 list over previous years. The region is also home to two ‘graduate’ companies in the 2013 report.

Maintaining their status as global challengers, Saudi Arabian chemicals giant SABIC and Egypt’s Elsewedy, a leading manufacturer of electrical wires and cables, continue to impress with their scale, international market

positions and excellence in operations in the latest BCG study.

New to the list are Abu Dhabi’s Etihad Airways and Qatar Airways, two of the fastest growing airlines in the Middle East. Both companies have been leveraging the region’s favorable geostrategic location as a transportation hub at the crossroads of Asia-Pacific, Europe, and Africa.

In addition to these four global challengers, Emirates and Saudi Aramco have joined the BCG challenger ‘graduate’ list. This list contains companies that have moved from global challenger to global leader status in recognition of their outstanding achievements, rivaling or often exceeding the achievements of long-established incumbent players in their respective industries.

“The Middle East upholds it reputation as a truly dynamic region as we witness global challengers emeriti Emirates and Saudi Aramco establish themselves as true international players. Emirates Airline has reported a remarkable record of 24 consecutive profitable years, and its orders for the Airbus A380 superjumbo airliner exceeded that of any other airliner by three times. Similarly, Saudi Aramco is the largest gas and oil company in the world, and has engaged in ventures all over the globe in its quest to become a global integrated energy business,” comments Thomas Bradtke, Partner and Managing Director in BCG’s Dubai office and originator of BCG’s Global Challenger report series in 2006.

“Our four Middle East challengers for 2013 have equally promising forecasts, and are playing a significant role in the global economy. The number of passengers transported through and

within the Middle East has grown 15% per annum over the past years, due in large part to the significant investments that challengers Etihad and Qatar Airways have been making in meeting the needs of the global middle class.

These megacarriers, along with emeritus Emirates, are reshaping the international aviation landscape. SABIC and Elsewedy are playing equally influential roles in transforming the chemical and manufacturing industries,” Bradtke concludes.

Methodology for Selecting the 2013 BCG Global Challengers

Produced by BCG’s Global Advantage practice area, the report is based on a comprehensive screening of thousands of companies from emerging markets conducted by BCG experts in each such market. Companies generally need to have annual revenues totaling at least $1 billion and overseas revenues of at least 10 percent of total revenues, or $500 million. The screening measures the size of each company relative to other challengers and to multinational competitors in their industries. It also analyses each company’s international presence, the number and size of its international investments, its M&A activity over the past five years, and the strength of its business model. The team excludes those companies that pursue only low-end, export-driven businesses. GFI

A copy of the report can be downloaded at www.bcgperspectives.com Gulf Insider March 2013

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GCC Economic Development

GCC

Economic Developments and Outlook 2013

By Dr Gıyas Gökkent, NBAD’s Group Chief Economist • GCC nominal GDP reached about US$ 1.56 trillion in 2012, up from US$ 1.44 trillion in 2011 • UAE economy to grow by 3.2% in 2013

2

012 was a record year in many respects. It was the second consecutive year with the average price of oil above US$ 100 per barrel. The average price of crude oil (Dubai, spot) was the highest ever at US$ 109.1 per barrel and up from US$ 105.5 per barrel in 2011. Oil production by the GCC region was also at a record level, with crude oil output averaging about 17 million barrels per day. GCC region nominal GDP also reached a new record high at about US$ 1.56 trillion, up from US$ 1.44 trillion in 2011. In aggregate, the GCC region continued its climb and became the 12th largest economy in the world, behind 11th ranked Canada. Saudi Arabia accounted for 47% of the GCC economy, while the UAE accounted for 23%. Qatar and Kuwait accounted for 12% and 11% of the GCC economy, respectively. Oman and Bahrain accounted for about 5% and 2%. GCC real GDP growth rate slowed from an estimated 7.4% in 2011 to 5.3% in 2012. Saudi Arabia accounted for about

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Gulf Insider March 2013

48% of the GCC real GDP growth rate, while the UAE accounted for 25%.

For the first time ever, GCC value of exports reached US$ 1 trillion, up from US$ 932 billion in 2011. This is almost double the 2009 level of US$ 526 billion.

UAE value of exports accounted for about a third of the GCC total. Value of oil and related exports rose to a new record high of US$ 692 billion, up from US$ 644 billion in 2011. GCC is estimated to have registered a trade surplus of US$ 558 billion in 2012 (up from US$ 529 billion in 2011), again a new record.

Services account remained in deficit, while workers’ remittances were a record US$ 77 billion culminating in an aggregate current account surplus of US$ 346 billion, equivalent to 22.3% of GDP. Saudi Arabia accounted for 52% of the GCC current account surplus with US$ 178.5 billion. UAE current account surplus is estimated at US$ 32 billion (8.8% of GDP) in the same period.

GCC budgetary expenditures rose to a record US$ 491 billion, up from

US$ 467 billion in 2011. Nevertheless, the aggregate budget surplus was substantial at US$ 222 billion, equivalent to 14.3% of GDP reflecting the buoyancy of hydrocarbon revenues. UAE economy is estimated to have registered a consolidated fiscal surplus equivalent to 7.8% of GDP, the best performance since 2008.

In 2013, real GDP growth rate in the GCC region is expected to slow to the slowest pace since 2009 at about 3.8%.

UAE economy is forecast to grow by 3.2% year-on-year. The main culprit for the slowdown is expected to be a flattening in hydrocarbon sector growth. The crude oil output of the four GCC OPEC members rose to 16.3 million bpd in August 2012, but has since declined every month and stood at 15.2 million bpd in January 2013.

Saudi Arabia accounted for about 73% of the decline in output amongst the GCC OPEC members in that period.

The price of oil has been resilient and high in historical terms, but stopped its steady climb since 2009. The average

Economic Development GCC

GCC trade surplus is forecast to ease to US$ 492 billion, while the current account surplus is estimated at US$ 270 billion. breach of its comfort level.

Non-oil sectors are forecast to grow by a healthy 5.4% y-o-y in 2013, spearheading overall economic activity given the slowdown in hydrocarbon activity. GCC nominal GDP is forecast to rise to US$ 1.61 trillion in 2013.

UAE nominal GDP is projected at US$ 368 billion.

GCC trade surplus is forecast to ease to US$ 492 billion, while the current

account surplus is estimated at US$ 270 billion (16.8% of GDP). The fiscal surplus is forecast to ease to US$ 171 billion (10.6% of GDP). UAE is forecast to register surpluses in its current account and budget equivalent to about 8.5% and 6.8% of GDP, respectively. Oil prices at these levels will continue to allow GCC to accumulate international assets and retain their usual role of being capital exporters. GFI

Saudi Arabia

2010

2011

2012

2013

Nominal GDP ($ bn)

526.8

669.5

727.3

753.9

Real GDP (%)

4.75

8.5

6.8

4

Total hydrocarbon export revenue ($ bn)

215.2

317.6

347.2

312.6

United Arab Emirates

2010

2011

2012

2013

Nominal GDP ($ bn)

283.9

338.7

358

367.5

Real GDP (%)

1.3

4.2

4

3.2

Total hydrocarbon export revenue ($ bn)

74.6

111.6

122.3

117.9

GCC region continued its climb and became the 12th largest economy in the world.

Kuwait

2010

2011

2012

2013

Nominal GDP ($ bn)

119.9

160.9

173.2

176.9

Real GDP (%)

11.4

6

6.6

3.9

Total hydrocarbon export revenue ($ bn)

61.8

96.7

102.4

98.2

Qatar

2010

2011

2012

2013

Nominal GDP ($ bn)

127.3

173.5

187.5

197.7

oil price in the January to mid-February 2013 was essentially unchanged from the same period in 2012. US Energy information Administration is forecasting a decline in the Brent crude oil spot price to an average of US$ 105 per barrel in 2013 and US$ 99 per barrel in 2014.

This compares with an average price of US$ 112 in 2012. The driver for lower oil prices is expected to be a rise in supply from non-OPEC sources, particularly from North America. Our estimates are currently based on an average oil price of about US$ 103 per barrel in 2013 and slightly higher in 2014 on the assumption that OPEC will curtail output to maintain

Real GDP (%)

16.7

14.1

6.2

5.4

Total hydrocarbon export revenue ($ bn)

72.6

105.5

109.9

109.5

Oman

2010

2011

2012

2013

Nominal GDP ($ bn)

59.2

72.7

80.2

82.8

Real GDP (%)

6

5.3

5

3.9

Total hydrocarbon export revenue ($ bn)

25.2

33.3

36.5

34.8

Bahrain

2010

2011

2012

2013

Nominal GDP ($ bn)

25.7

29.0

31.0

32.3

Real GDP (%)

4.3

1.9

3.7

3.9

Total hydrocarbon export revenue ($ bn)

10.2

15.4

14.8

13.9

Gulf Insider March 2013

29

Abu Dhabi - UAE

GOVERNMENT INITIATIVES REMAIN KEY DRIVING FORCE IN ABU DHABI Abu Dhabi’s economy is forecast to grow 5.7% annually during the period 2013 - 2016.

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he Abu Dhabi Department of Economic Development (ADDED) has reported GDP growth of around 3.9% during 2012, and an average forecast of 5.7% for the period 2013 – 2016.

Oil related revenues remain the key contributor to the emirate’s economy, although the non-oil sector is expected to see stronger growth in the medium term, rising by an average of 6.5% annually over the next four years.

Government expenditure in physical and social infrastructure will continue to fuel economic activity and ultimately help to drive short to medium term growth in the capital.

The year concluded with a number of important announcements from the UAE Central Bank regarding the regulation of the country’s mortgage market.

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.

These rates, amongst other criteria, are now being assessed under a formal review process. The results of this consultation period are expected to be announced later in the year.

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Gulf Insider March 2013

Office Market

Abu Dhabi’s office inventory continues to rise unabated, although demand for office space remains largely passive.

Over the next three years, as much as 1.5 million square metres of new office space could be delivered to the market. Given current demand levels, this is expected to result in rising vacancy rates.

Both prime and secondary locations are suffering from a reduced number of tenant requirements, resulting in an increasingly competitive environment for the capital’s landlords.

Prime rents have remained static during the quarter at around AED1,6001,900 sqm/annum.

As has been the trend historically, Government and quasi-public occupiers remain the primary source of new office demand, particularly for good quality accommodation. During 2012, around 60-65% of total market take-up was directly attributed to Government related entities.

Overall, Q4 2012 saw a marginal change in rental values with an average drop of around 2% from the previous quarter.

Outside the prime locations, leasing conditions are becoming increasingly depressed, as the market submits to the pressure of growing supply levels and weak occupier demand. As a result,

Real Estate Abu Dhabi

Average sales rates for residential apartments targeted towards the upper middle and upmarket segments now range between AED 9,650 – AED 13,400/per/sqm.

secondary offices are experiencing higher rental deflation, with lease rates now ranging from AED700-1,250/sqm/ annum, falling by around 2-4% during the quarter.

Residential Market

The capital’s residential stock has grown at a compound annual rate of close to 4% over the past five years, rising from around 180,000 units at the end of 2007 to reach 230,000 units at the of 2012.

Over the next three years as many as 45,000 new properties could be delivered, with most units emerging in master planned communities outside the existing city centre, with Reem Island seeing the majority of this activity.

Although, these locations are becoming more accessible and attractive for occupiers, the lack of properly developed infrastructure and operational facilities remain off-putting for certain segments of the market.

The downward trend in average rental rates continued during Q4, falling by close to 4% from Q3. The biggest drop was observed for larger units with 3-bed types falling 5%, whilst studios and 1-bed units posted a smaller decline of around 3%.

Lease rates for typical 2-bed and 3-bed properties were observed at AED 125,000 and AED 150,000 per year respectively.

The sales market remains subdued, with transactions proving scarce over the past quarter, whilst prices have stagnated.

Average sales rates for residential apartments targeted towards the upper middle and upmarket segments now range between AED 9,650 – AED 13,400/per/sqm. The higher price points observed are for completed units within ‘Investment Zone’ areas such as Al Raha Beach and Al Reem Island.

The market is eagerly awaiting a final ruling on the Central Bank’s proposed mortgage cap, after local financial institutions have provided their feedback to the relevant authorities post an initial consultation period.

Should tighter lending limits be enforced, we are likely to see a decline in new mortgages as end-users struggle with rising deposit requirements. GFI Gulf Insider March 2013

31

Bahrain

BAHRAIN REAL ESTATE SECTOR AWAITS UPTURN

A

lthough the Kingdom continues to witness an ongoing political stalemate, both Fitch and Standard & Poors have maintained their relatively positive views of Bahrain’s long-term sovereign credit ratings.

Although both agencies indicated their ongoing concern over the lack of dialogue or a pathway to the resolution of domestic tensions, Fitch maintained Bahrain’s foreign currency rating at BBB with local currency at BBB+, while S&P maintained both at BBB. The EDB announced that during the second quarter, non-oil growth was up 8.1% on 2011 and analysts polled by Reuters at the end of the third quarter, said they anticipated real GDP growth to be 2.8% in 2012.

The Kingdom’s economy has long been underpinned by a well-regulated banking sector but the political crisis in 2011 hit the retail banks in particular

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Gulf Insider March 2013

very hard. However, they have bounced back in 2012, growing their balance sheets by 4.5% and increasing deposits by 8.2% in the year to July 2012.

The other GCC states have been quick to show their support for the Kingdom through a series of initiatives both individually and collectively.

The GCC states have collectively allocated $10bn for use in developing the Kingdom’s housing and infrastructure.

Kuwait has independently announced a grant of $273 million for two projects, the bulk of which is earmarked for expanding and upgrading Bahrain’s electricity network.

In addition to this major infrastructure development, the Kingdom is planning a number of other large-scale initiatives, including $4.8bn directed to the stateowned oil company, $2.2bn into the state aluminium entity and $1.2bn into Gulf Petrochemical Industries Company.

In addition, Bahrain is moving forward

with major plans to grow gas production from the current 1.5bn cubic feet per day, to 2.5bn in 2020.

Prince Alwaleed bin Talal has also indicated strong support for the Kingdom by announcing that both Rotana media group and Alarab news channel will be relocating their headquarters to Bahrain.

On a slightly more disappointing note, escalating costs for the construction of the ‘Friendship Causeway’ linking Bahrain to Qatar have prompted a review of the project which seems likely to delay its completion by several years.

Office Market

The office market continued to be quiet in Q4, with few movements in or out of the market and a slowdown in ministry movements. There continues to be weak sentiment for the new and existing space in Diplomatic Area

Real Estate Bahrain

The GCC states have collectively allocated $10bn for use in developing the Kingdom’s housing and infrastructure.

now and barring any major unforeseen events, we consider that this to be the bottom of the current rent cycle.

This does not necessarily mean that there will be a rapid return to rental growth as the market enters the next phase, but it does mean that we are now all waiting for the anticipated upturn in economic conditions which should lead to the absorption of existing empty spaces and ultimately, rental rate growth.

Residential Market

which continues to suffer from poor access, circulation and parking despite the loss of many tenants over the last few years.

Spatial requirements continue to be focused on the smaller end of the spectrum and occupiers remain highly sensitive to rental rates and continue to seek fitted offices in order to minimise capital expenditure.

The new buildings which continue to be offered on the traditional ‘shell and core’ basis remain deeply unattractive to the market, and there is a standoff between potential tenants and landlords over the capital expenditure required to occupy available spaces.

The Shaikh Khalifa Bin Salman Highway, which essentially forms the northern cornice, has recently been expanded into a six lane highway in places and this has significantly improved access along this stretch of highway for office workers travelling

to established commercial areas such as Diplomatic Area. However, access within Diplomatic Area itself remains problematic, and the appeal of the area remains weak.

Mid to premium office occupiers in Bahrain continue to prioritise the following attributes when seeking space at present: 1. location in Seef District; 2. fitted-out space; 3. other incentives (rent free periods); 4. parking; and 5. access.

The oil and gas sectors together with the Sharia Insurance companies drove a limited amount of demand growth for a while, but these are all now largely accommodated and even reorganisation activity amongst Government ministries is on the wane.

Office market rental rates have remained steady for several quarters

The residential leasing market continues to show some life despite the slowdown across virtually all major employment sectors. Activity continues to pick up in the apartment sector and rental rates have finally stabilised in most areas. However, we note that many of the compound locations continue to see a very slight slip downwards in both occupancy and rental rates. This combination of factors appear to indicate that the troubled political environment in Bahrain is making the Kingdom less appealing for expatriates with families with the shortfall being taken up by expatriates on bachelor status.

The lack of available and/or suitable accommodation in Eastern Province, Saudi Arabia, together with the more relaxed environment for westerners in Bahrain, is driving housing requirements for the growing number of expatriates employed in Saudi Arabia, which is in turn being driven by the oil and gas boom in particular. However, this is creating a very site-specific opportunity in Bahrain, primarily for those compounds in and around the Hamala area (on the west coast of the Kingdom), from which expatriates can undertake the daily commute to Eastern Province via the causeway.

In the apartment rental sector, rates at Amwaj islands remain firm together with high occupancy, and the area remains popular among the younger professional expatriate crowd. Although there have been several high profile apartment project failures in this area, there are few new properties available and choices for incoming tenants are relatively limited and prices relatively high. The most popular locations for apartment tenant Gulf Insider March 2013

33



Bahrain Real Estate

Rates at Amwaj islands remain firm together with high occupancy, and the area remains popular among the younger professional expatriate crowd. enquiries continue to be on Reef Island and in Juffair, the first for proximity to the commercial office and retail district of Seef together with the availability of new properties, and the second for the selection of competitively priced, brand new properties that are still available.

Amongst the more price-sensitive expatriate population, Adliya and Mahooz, which lie on the southern outskirts of Manama, remain the key locations, but the presence of large, ageing properties has led to the growing phenomenon of unscrupulous landlords leasing their properties to third parties who then lease them for ‘worker accommodation’ purposes. These buildings often end up with high numbers of male expatriate tenants and are located in the middle of otherwise normal residential districts.

Attempts to regulate this type of activity have come to nought so far, with the major stumbling blocks being proof and enforcement.

Residential sales continue to pick up albeit slowly and in specific pockets.

It remains difficult to address the 34

Gulf Insider March 2013

needs of the ‘affordable’ market for a number of reasons. Site assembly and infrastructure are often complex, land prices remain completely out of line with commercial realities, Government regulations often do not allow creative solutions from the private sector and mortgage finance remains expensive. At present, this sector remains largely off the development radar, with developers either engaged in middle or high-income building projects or seeking to assist the Government in its programme of social housing projects.

Even the upper income sales sector has been affected, particularly with respect to the apartment sector in which a number of high profile, high cost projects failed and remain unresolved with investors suffering as a result. Investors or end users will be extremely cautious when buying off-plan in this environment, and will return to their caution of a decade ago, when buyers only bought what they could actually see.

In the social housing sector, it seems work on the first batch of homes on the

reclaimed island of Northern Town is finally due to begin, over a decade after the project was first launched. Although the project was initially envisaged to accommodate over 75,000 homes, the island has languished without infrastructure or proper road connections for many years and the announcement of a first 500 homes has been widely welcomed. Most of the Government’s expenditure in attempting to resolve the 50,000 strong housing waiting list problems will be derived from the $10bn GCC Marshall Financial Support, but this number of units will take many years to complete as the waiting list continues to grow.

The social housing problem is the inevitable result of demographic pressures increasingly building in the low-income sectors of the Bahraini population, and it may be that the promises originally made on the basis of an entirely different demographic structure may well have to be revisited by the Government. GFI Source: CBRE

Abu Dhabi - UAE

Signs of growth in Abu Dhabi residential market Cluttons, the real estate specialist, has found that areas of Abu Dhabi are defying the overall trend of declining rent prices.

A

reas which have benefited from the recent development of good quality residential communities, such as Raha Beach, Raha Gardens, Al Reem Island, Saadiyat and Al Reef, have all demonstrated rental price increases over the last six months which appear set to continue throughout 2013.

The increases are linked to general market demand. This is being driven by an influx of people moving to Abu Dhabi from both Dubai and outside the region, as well as relocating within the city from older buildings, which lack equivalent facilities to the modern developments.

The general standard of living and quality of build has improved in Abu Dhabi, which has also encouraged movement within the marketplace.

The recent decree that all government employees, as well as those who work for government-affiliated companies, must live within Abu Dhabi has helped fuel residential property demand. The Dubai to Abu Dhabi migration is expected to continue throughout 2013 as existing leases in Dubai expire. Indications are that tenants working across various sectors including the airline, construction, energy and professional services industries are moving to Abu Dhabi.

Average rents in Abu Dhabi have also become more affordable whilst Dubai rents have begun to rise, bringing the most sought-after areas of both cities closer together. For example, the average

rent of a two bed apartment in Dubai Marina is AED 125,000 per annum, while the average two bed apartment rent in Al Reem, Raha Beach and Saadiyat range from AED 105,000 – 145,000, dependent on quality. This has helped to encourage people to relocate to the capital.

Recent announcements on future developments, investment into infrastructure and real estate, and the Sorouh/Aldar merger have also helped bring confidence to the marketplace.

There are many positive signs that, as long as Abu Dhabi continues to offer enough jobs and improved lifestyle, people will continue moving to the city.

Raha Beach and Raha Gardens: These areas have seen rent increases that are linked directly to the decree, accounting for 40% of the enquiries. Low supply of stock within these locations has helped to drive up prices with developments proving to be popular with people moving to the city - – 18% increase on two bed villas. Current average rent AED 160,000 per annum Al Reem: This district has also benefited from the decree, accounting for 25– 30% of enquiries for the location. The development is well located with easy access to the city. The buildings within Al Reem benefit from having good facilities and have attracted people previously living in older buildings on the island, accounting for approximately 30% of all

enquiries - – 10% increase on two bed apartments. Current average rent AED 105,000 per annum Saadiyat: Has also benefited from the decree. While rent increases are marketdriven, they are also influenced by the phased delivery of new apartments, which has helped to maintain demand – 25% increase on two bed apartments.

Current average rent AED 145,000 per annum Al Reef Villas: This has proved to be an attractive option for families and people looking for villas at a more affordable rate. The villas offer good value for money for people wanting more space - – 17% increase on two bed villas. Current average rent AED 95,000 per annum The average two bed rent in older buildings on the island is currently AED 95,000 per annum, a 10% decrease over the past 12 months. The increased supply of new apartments is expected to put downward pressure on rents across the island as people choose to relocate to newer buildings.

Landlords in older buildings will be forced to further lower rents as vacancy increases, in order to secure a return on their investment. The redevelopment of older buildings will also be crucial to protect rents and reduce vacancy levels, if they are to compete with new stock entering the marketplace. GFI Gulf Insider March 2013

35

Bahrain - Elite Hospitality

Oasis Membership Club Lodging at Elite Seef Residence & Hotel just got better!

G

et ready for some top-of-therung pampering at Oasis Club!

The luxury and hospitality marquee is inaugurating the new space in Elite Seef Residence & Hotel, located in Seef District. The Oasis Membership Club is Elite’s first loyalty programme and is designed to offer both existing and new clientele access to the benefits of the flagship hotel.

This is an exclusive addition to the existing facilities offered within Elite Seef Residence, which already hosts a temperature regulated pool, a contemporary poolside restaurant, a poolside bar, conference and banquet halls, a health club and kids play area.

Annual Oasis membership benefits include free stays at the hotel,

redeemable gift vouchers and discounts to the hotel’s various facilities.

Elite Seef Residence offers luxury accommodations with proximity to the islands main shopping and business centers and has a high-class clientele

including business travelers and visiting families. GFI

For queries and membership call on Tel. +973 1755 8200

THE WORLD’S FASTEST GROWING BOAT SHOW COMES TO BAHRAIN  Knotika Boat Shows officially announce the dates for Bahrain Boat Show International (BBSI) 2013.  Over 120 leading international marine brands to exhibit.  20% of Expected Growth, Estimated Number of Visitors to surpass 18 000 people.

T

he 4th Bahrain Boat Show International is on this month.

Spanning 3 days, the organisers expect BBSI 2013 to be the biggest and most impressive show yet and have announced that the largest fleet of mega yachts is heading to our island for the occasion.

BBSI 2013 will be held over 50,000 m2 of land and water exhibition space with over 120 marine brands expected to display their products. What will be different about this year’s event is the brand new Outdoor Show. This year, BBSI

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Gulf Insider March 2013

hopes to attract not only its corporate, marine enthusiasts and boat owners but also families and sporting fans.

This year organisers expect to draw in approximately 18,000 visitors, of whom 30% are anticipated to be from neighboring GCC countries.

The previous Bahrain Boat Show International witnessed 15,000 visitors.

While still catering for its boating clientele, there will also be an exhibition of various outdoor recreational lifestyle products including 4-wheel adventure,

camping, the latest bicycles, sporting gear, and clothing to suit all interests, ages, and budgets. In addition, there will be lots of live entertainment, games, activities, and boat trips to keep everyone entertained and happy for the day.

The Bahrain Boat Show International 2013 will take place at Amwaj Marina on 28th, 29th and 30th March 2013 from 3 pm to 10 pm every day. GFI

For more information visit www.bahrainboatshow.com

Real Estate Feature

THE WORLD’S 10 MOST EXPENSIVE

RETAIL MARKETS

Hong Kong is the world’s most expensive global retail market, according to new research from global property advisor CBRE Group, Inc. (CBRE).

C

BRE’s quarterly survey, which tracks the top 10 most expensive prime global retail markets, continued to find historically low construction rates of prime retail space, leading to low availability levels and fierce competition. This dynamic is driving record rents across many global retail markets, including those ranking among the most expensive, such as Hong Kong, London, Paris and Sydney.

Hong Kong is firmly established at the top of the rankings, with prime rents holding steady during the fourth quarter of 2012 (Q4 2012) at $4,335

per square foot per annum to defy a deceleration in retail sales due to current global economic uncertainty. Demand in Hong Kong has remained relatively muted as many retailers have grown less aggressive with their expansion or entry plans given the market’s lofty rent levels.

Retailers throughout Hong Kong have generally become more selective in their requirements and, the best, prime units are still in high demand, while off-prime or secondary units attract less interest.

Overall, CBRE’s prime retail rankings saw little change during Q4 2012. Prime rents have stabilised at historically elevated levels due to a scarcity of, and preference for, prime space in locations with the greatest degree of visibility. Tourism throughout Asia, Europe and the U.S. has principally supported the prevailing stability in prime rents.

As the only Americas city in CBRE’s top 10 rankings, New York has performed

particularly well over the past year, driven by strong tourism trends and demand from international retailers. In contrast to extensive shortages for prime space seen in markets such as Hong Kong, Paris, London and Sydney, new supply in New York came online at an accelerated pace along Fifth Avenue. The new supply is being marketed at all-time record high rents; as a result, the overall asking rent on Fifth Avenue rose 16.5% year-overyear to a record high of $2970 per sq. ft. per annum.

While most global prime rents were stable during Q4 2012, London and Paris both witnessed measurable prime rent growth - with 10% and 27% quarterover-quarter growth, respectively - due to persistent demand from international retailers. Paris, in particular, climbed four positions in the rankings relative to Q3 2012. Even with quarterly growth of 27%, Paris is expected to see further prime rent growth due to increasing demand for space in the city’s best locations. Throughout Europe’s top retail locations - Paris, Moscow and London in particular - there was a divergence in performance between primary and secondary locations, as the latter continues to experience falling rents and rising vacancies.

The supply of prime space was tight elsewhere throughout the Asia Pacific region, which helped maintain rent levels in Sydney, Melbourne, Beijing and Tokyo.

In Sydney, demand from international retailers (especially from the US) is high with many new will brands set to enter the market in 2013. GFI

Gulf Insider March 2013

37

Cars Review

Infiniti’s Accolades

The automotive brand bags advertising awards and ‘SUV Of The Year’ title.

L

ess than a year since its introduction to the region and the all-new Infiniti JX has been awarded as the ‘SUV Of The Year’

by BBC Top Gear Middle East and has witnessed an overwhelming response here. The SUV’s sturdy exterior matches the power exhibited by its 3 .5-liter 24-valve V6 engine that pumps an impressive 265 bhp.

A spacious interior offers passengers

great comfort. The second row seat rotates to allow those who want to hop onto the third row, to do so with ease.

Fitted with top quality trimmings the inside of the car looks as posh as the chassis. The entertainment system is great with a 13-speaker setting, television monitors offering good clarity and the standard MP3 and CD/DVD players. The JX 35 features a first of its kind Backup Collision Intervention System which

The McLaren P1

T

he 3.8-litre twin-turbo V8 petrol engine in the McLaren P1 is a new version of the familiar M838T unit, that has been significantly upgraded to optimise cooling and durability under the higher loads. The lightweight electric motor, developed by the McLaren Electronics arm of the Group, produces 176 bhp and is unique to the McLaren P1. The motor produces maximum torque of 260Nm instantly from a standstill, greatly increasing the throttle response.

The McLaren P1 can be driven in a variety of modes, powered by the engine and electric motor together, or solely by the electric motor. This optimises residential driving with near-silent running.

38

Gulf Insider March 2013

automatically engages brakes in case of a possible collision that the driver may be unaware of.

Infiniti also received a Sapphire (silver) and Emerald (bronze) Cristal for its inventive use of print media for advertising campaigns, at the recently held Mena Cristal 2013 awards. GFI

For a test drive call on Tel. +973 1773 2732 or visit the showroom in Sitra

Review Cars

The Drag Reduction System used on the McLaren P1 increases speed by reducing the amount of drag on the rear wing. This helps rapid power delivery for high performance acceleration. The system immediately deactivates when the button is released, or if the driver touches the brake pedal. The light-weight battery supplies great power. Complex cooling systems help to maintain cell performance and reliability. In addition to the battery being charged via the engine, there is a plug-in charger which can recharge the battery, from empty, in only two hours. GFI

GT-R Track Pack Edition in the Middle East

D

eveloped by Nissan in collaboration with Bilstein and NordRing Corp, the GT-R Track Pack is lighter, faster, offers great grip and boasts a track-tuned chassis with enhanced braking performance – perfect for the racetrack! Other track-focused features include the unique six-spoke lightweight RAYS alloy wheels, which are finished in a special black quartz chrome colour, and additional brake cooling ducts and air guideswhich help reduce brake temperatures by around 50 degrees during track use.

The car has no rear seats keeping in tune with the track friendly design.

The part-leather front race seats, meanwhile, have a special covering for extra grip under hard cornering. Affectionately known as ‘magic cloth’ by Kazutoshi Mizuno, the creator of the GT-R, the high friction fabric covers the face of both seats and ‘sticks’ to the clothes worn by the driver and passenger to hold them in place under track driving conditions.

Although the GT-R Track Pack has been created to lap circuits, the car remains fully road legal. The dampers can be adjusted to a softer setting at the flick of a switch when the car is to be driven on the road.

An upgrade on the MY2013 GT-R, the GT-R Track Pack features a handbuilt 3.8-litre twin turbo V6 exhibiting substantial rise in power. When using the standard R-Start mode, the Track Pack moves between 0-100 km/h in just 2.7seconds under ideal track conditions. There is an eight-way power control for the driver’s seat, a 30GB hard drive HDD Music Box sound system, satellite navigation, rear-view camera, a 7-inch LCD multi-function central display. GFI

Gulf Insider March 2013

39

Cars Review

The All-new Bentley Flying Spur

B

entley claims that its latest Flying Spur is the most powerful four-door model ever!

It will make its global debut at the 2013 Geneva Motor Show in March.

The saloon features an athletic design that combines traditional Bentley styling cues with a sporting stance and contemporary details. The interior

includes 600 new parts including the sun visors, grab handles, armrests and some of the front console and controls carried over from the previous generation.

A powerful 6.0-litre, twin turbo W12 engine, coupled to a ZF eight-speed transmission pumps 616 bhp and 800 Nm of torque.

Central infotainment is controlled through a high resolution 8-inch touch-

screen interface while infotainment features can be controlled by voice activation. The Naim for Bentley Premium Audio System, featuring redesigned separate subwoofers for improved bass extension and 1100 Watts of power, is available as an option for those wishing for the ultimate in-car audio experience.

Two 10� LCD screens are installed to the backs of the front seats.

The saloon is available in both four- and five-seat configurations. Customers may also specify an optional glass sunroof at no additional cost. An optional Climate Boost function features an enhanced blower system for improved cooling of the rear cabin.

Customers can choose to include the Mulliner Driving Specification including five additional hides, expanding the number of available shades to 17, and five further wood veneers. A new 19-inch Classic wheel is fitted exclusively to the new Flying Spur, either bright-painted or with a diamond turned finish. GFI

The All-new Nissan Pathfinder comes to the Middle East

I

ntroduced more than a quarter of a century ago, Nissan Pathfinder set the bar high for the generations that followed. Each successive Pathfinder design has remained true to that original premise while evolving to meet the changing needs of its owners.

Now, with the introduction of the all-new fourth generation, not only does Pathfinder provide capability with spacious seating for seven, and an intuitive 4 Wheel Drive System, but it also resets the standard for the segment with an unprecedented level of premium style, comfort, fuel economy and thoughtful technology.

The Pathfinder has an adventure-

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Gulf Insider March 2013

ready look with wheel-oriented muscular fenders and a strong, stable stance.

The upper body features an open cabin with large windows which can be complemented with an available Dual Panoramic Moonroof, to enhance AllNew Pathfinder’s open, airy interior environment.

A spacious interior features rich leatherappointed seating surfaces; ventilated, heated and cooled front seats; sliding second row seats and an advanced Bose Audio System with 12 speakers.

The Around View Monitor provides the driver a virtual 360-degree image of the area around the vehicle. The instrument panel includes Advanced Drive-Assist Display (standard on every model) which features a 4.0-inch LCD colour display, and utilises 3D-effect graphics to relay key information right in front of the driver.

The SUV has a good entertainment and infotainment system. GFI

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Feature Social Media and Workplace

‘LinkedIn’ or ‘locked out’

is there a digital divide in your workplace and what does it cost your business?

Jill Boggiss, Inside Change

T

eaching on a number of management and HR related programs has put me in contact with many Bahrainis benefiting from Tamkeen funding of their professional development.

And the experience is making me think differently about various business processes.

Teaching a topic makes you think just as hard as learning a topic, and hearing different views about what works is always interesting. In this case it has made me think about the way managers are taught to manage staff performance and I have been thinking about the ‘consequences of the digital divide’ in the workplace (and the opportunities

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Gulf Insider March 2013

Jill Boggiss

that this could offer). The usual human issues of contact, straight talking and clear communications notwithstanding I wonder if social media could help to improve the experience.

In particular I have been thinking about how social media could support the performance management process to be more productive, more useful and as a ‘live’ tool to give feedback on results more quickly to improve performance in real time.

I was introduced to Adel Maymoon, a young Bahraini entrepreneur, who knows his stuff about social media. He is an advocate for social media over traditional channels of communication

when it comes to marketing spend. In terms of his working relationships he takes time to be strategic rather than get caught with campaigns or tactical work and so he wants to have at least a year to support organisational learning. I was struck by his traditional approach in terms of contact time and his unshakeable belief that print and broadcast are gone forever (I can’t imagine a world without print at least). It is “all about owning your own channels and sending relevant and timely communications”. And in some ways that is so for managers tasked with delivering a certain part of the annual business plan.

So I asked him what would happen

Social Media and Workplace Feature

if the hierarchy was turned on its head and those who know how to use these channels effectively (usually younger staff members) get to decide how to communicate and they mentor those who don’t (usually older staff members and sometimes senior managers) about how to engage people in order to boost the bottom line results.

“Organisations need to realize that they are no longer in control of access to the Internet during working hours. Harness the power of these channels by becoming the favorite channel.

This will change the whole skills set of marketing and communications staff as well as those in HR and it will also put pressure on managers and CEO’s to have interesting things to say much more efficiently.

He said “younger people ‘chunk’ messages down and communicate more regularly – they are more visual, use You Tube more, share photos– and use a range of free apps to get messages out – learn from their skills, do some of what they do” In our discussion I was surprised that he doesn’t think at all in terms of ‘generation gaps’ and challenged me about whether this exists at all. And rather crushingly he thinks of himself as ‘older’ (he is 29), clearly I am beyond older (in years if not in spirit).

So what can we learn from social media that can be adapted to support managers to turn performance management into a true engagement process.  Remember you create connections through shared interests  Pay attention to the metrics – they tell the story about engagement  Your communication should be timely and relevant and easy to access  Dates and ‘events’ can be

Teaching a topic makes you think just as hard as learning a topic, and hearing different views about what works is always interesting. managed very well using an integrated mixture of channels  Entertainment and education can go hand in hand  Just in time content is better than out of time content  It is important to have real relationships as well as virtual contact.

The hierarchy still exists on paper and is symbolized with offices, perks and formal authority but we are increasingly working in networks that cross organizational boundaries and the ‘Wirearchy’ as outlined

by Harold Jarche in his social learning blog (jarche.com) creates huge opportunities for all of us.

In his blog he explores the impact of social learning and comments, “Our dominant frameworks for structuring work are currently hierarchical structures, like corporations and bureaucracies. But these structures are failing us, as the world gets so networked that traditional command & control structures cannot deal with the rapid change and increasing complexity.”

A report published by the World Bank highlights the fact that young people will be dominating the workplace over the next ten years “The large number of youth in the Arab world will continue to add pressure on the labor market over the coming years – approximately a third of the total population is currently below the age of 15, and a further third is aged 15-29. In consequence, tens of millions of young people will enter the

Source: http://blog.silkroad.com/index.php/2012/10/social-mediapolicy-workplace-collaboration-infographic

region’s work force over the next ten years needing to find jobs either at home or through regional labor mobility”* *e4e Realising Arab Youth Potential Report, April 2011 So giving the last word to Adel – how does he believe employee engagement can be supported through new media? And what is his advice to Bahraini managers in terms of engaging with the coming ‘net’ generation and how to motivate them?

“Don’t be scared of the technology, you can master it – be more concerned with what you say and how this connects with your staff and their interests. Focus on what you need to say – the same rules apply - you have to communicate topics that people are interested in – if you are dull or being irrelevant this will be simply be magnified through new channels – if you are interesting you will gain a following” We would love to know what you are doing in your company to make your organisation more effective, contact Jill Boggiss if you have ideas that are working and that you can share with our readers. GFI

Jill Boggiss is a guest contributor to Gulf Insider. She runs her own consulting business, Inside Change, which specialises in waking people up to their potential so that they get more from life and contribute more at work. For more information contact; jill@insidechange.org www.insidechange.org

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Cars Volkswagen Ice Drive

Sledging in Lapland – German style!

Volkswagen Ice Drive – Arvidsjaur, Sweden

A

balmy winter’s day in Bahrain, 21 degrees, light wind, wonderful.

One phone call and 3 flights later and I was shivering in minus 20 Degrees, 100km south of the Arctic Circle. Why, you might ask? Why indeed! The 2013 Volkswagen Ice Driving Experience – an enlightening, challenging and exciting 5 days that tested driving skills, concentration and endurance; simply fantastic.

Arranged by Volkswagen Middle East, the event revolved around Arvidsjaur, a small town of around 7,000 people in the heart of Swedish Lapland. The tourist guide on the plane gave some clue as to the selection of this remote location for the week’s activities - the town’s name means the generous lake, which, after four months of preparation, it most certainly was. Cleverly honed by the town’s inhabitants, the lakes surface is turned into a 50cm thick ice rink, where

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By Hugh Haskell-Thomas,

a motley group of motoring journalists could learn to drive all over again! Our view of this ‘ice playground’ as we flew into the town’s small airport gave a fleeting glimpse of the fun yet to come.

The first day began with an introduction to our instructors, some initial instruction in the dynamics of driving on ice, provided by the program’s senior instructor Ronnie Wechselburger, Guinness World Record Holder for Tightest Parallel Parking), and an initial look at our transport for the week, the new Volkswagen Golf 4Motion.

With barely a chance to finish coffee we were bound for the lake in a snaking convoy of these amazing cars on snow covered roads at over 120km/hour; a first indication of the prowess of the cars in ensuring the safe arrival of the convoy despite the efforts of Swedish truckers flying past in the opposite direction in clouds of snow.

With the instruction to gradually turn

off all forms of electronic assistance, we were confidently guided through a suite of routines that boosted our techniques and skills for the race track yet to come. Small slalom courses soon became almost straight, drifting circles became dancing arenas and a bland open area was transformed with a few cones into a giant football pitch where these nimble cars and their not so nimble dance partners slowly began to hone their skills. A highlight for me was winning the ‘Penalty Shoot Out’, an exercise of reversing the car as fast as one could dare, pivoting it 180 degrees at the last minute and ‘kicking’ the metre high football – 27 metres the result; 1-0 Bahrain!

As the days and nights progressed the pace and our skills increased to a point where we were confidently drifting and power sliding the cars around ever more complex race tracks carved into the

Volkswagen Ice Drive Cars

A highlight for me was winning the ‘Penalty Shoot Out’, an exercise of reversing the car as fast as one could dare.

ice by the evil minded caterpillar drivers. “Turn in, inside, Inside, Inside, apex 1, apex 2, exit1…” the constant call of our instructors over the radio were a constant challenge and inspiration for some of the most exhilarating driving this writer has ever experienced! Not since blasting 65 ton tanks across the snow covered hills of Germany have I had such immense fun and, it has to be said, in a worthy chariot developed and honed over the past forty years in that same country; the Volkswagen Golf excelled in the snow!

In its latest release, this nimble, brilliantly focused machine helped most of the ageing journalists in our group believe they had become the next Kimi Räikkönen, well, until an ever tightening curve, too much speed and no grip saw many of us climbing the snow covered banks of the track to bask in the icy sun and await the ever present Touareg and tow rope to pull us,

red faced, back onto the racing line.

“Turn in, inside, inside….”, here we go again!

However, a trip to Lapland would not be complete without some experience of the more common forms of travel and sustenance when the snows really set in. A herd of skidoos, menacingly ticking over at the edge of the forest, provided a completely different driving experience from the first three days. These amazing 800cc, 150 BHP monsters whisked us through the narrow forest tracks at scary speeds, effortlessly accelerating to over 100kph across the vast snow covered wilderness. At minus 17 degrees, the electrically heated hand grips and foot wells were a welcome relief to the icy wind tearing at our helmets and fighting to freeze every nerve in the body.

A trip back to our wooden tepee beside the race track provided a fitting end to an exhilarating week with local chef’s serving reindeer

and fresh salmon cooked in the centre of this traditional shelter.

However, this ‘end’ proved to be short lived with a sudden raucous sound bellowing through the walls; one last surprise had been arranged by Volkswagen.

Madly dashing out into the cold night we were dazzled by the LED lights of a Rally prepared Golf R spinning effortlessly around, covering us in a spray of Lapland’s icy powder. One after another, Ronnie took each of us on a flying lap of our training ground, pirouetting this 800BHP monster effortlessly from corner to corner, grinning and giggling as he did so. A USB stick plucked from the dash of the car provided a lasting memory of an amazing experience and visual proof that our week’s efforts were no match for a car balanced on the edge by a magician!

Inspired, you should be. Motivated to go, I hope so. The Golf 4 Motion, the stunning location, amazing instructors and the adrenaline rush combine to provide the VW Ice Driving Experience – go if you dare, but go you must. Visit www.volkswagen.de for details – the trip is available to all – every driver should experience this once in their driving life! GFI

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Art Childhood Memories

inspired by childhood memories Artist Mireille Merhej

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Childhood Memories Art

M

ireille Merhej, a popular artist in the Arab World, launched her first solo show – Nostalgia – last month at the wellknown Art Sawa gallery in Dubai. Currently based out of Beirut, she moved to Paris after completing her AA in Graphic Design and BA in Fine Arts. She further went on to obtain her Masters in Decorative Painting there.

Mireille’s paintings, at first glance look familiar to the work by artists like Jacque de la Villegle, Mimmo Rotella and Raymond Haines, who have adopted the iconic style of de-collage or ripped street posters.

Though a closer look reveals that, the images are Acrylic paintings.

Since 2000, Mireille has been working with renowned Lebanese interior designers – painting murals, ceilings and walls with different techniques and textures for residential and commercial spaces. In 2009 she abandoned her work to create her own creative art work, mostly paintings on canvas for which she draws inspiration from her childhood memories and images from magazines news papers or pictures taken by the artist herself.

“In my works, I try to transform scattered images floating in my mind into an interesting work of art.” – Mireille Merhej GFI

Gulf Insider March 2013

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Technology Gadgets

Tech picKs Your ultimate gadget guide!

Eurostar ePad Femme

The world’s first tablet made exclusively for women, this 8-inch capacitive screen tablet adapts to a modern woman’s diverse lifestyle. This tablet comes in a light shade of pink, features 16 GB ROM flash storage space and is powered by the latest 4.0 version of the Android Ice Cream operating system. In addition to preloaded applications that include Google Talk, Android Market, Facebook, Twitter, Skype, YouTube, Gmail, Dictionary, Encyclopedia and games the tab also has women centric apps like yoga, fitness, cooking, health and entertainment, just in time for women’s day. Other accessories include a power adapter, ear phones, USB cable, various capacity Micro SD cards and a leather case.

Price: BD61.5

BlackBerry Z10

Everyone’s talking about the new BlackBerry!

The first full-touch device powered by BlackBerry, the Z10 comes with a 4.2-inches display and pixel density of 356 dpi. It’s slightly bulkier than competitor smartphones.

Its dual core Snapdragon S4 of 1.5GHz makes it faster and fun to use. It features RAM of 2GB and has a 32GB expandable memory.

The 2-megapixel front snapper supports 720p video and rear shutter of 8 megapixels, 1080p recording.

Price: BD267

Nokia Asha 310 Da Vinci Mobile Technology Kite Tablet

The Italian electronics firm unveiled the Kite Full-HD. The tablet has two operating systems - Android 4.0 Ice Cream Sandwich and Ubuntu 12.04. Users can easily switch from one OS to the other. Light to hold the tab has a 10.1-inch capacitive multi-touch IPS display which offers great clarity. Its Samsung Exynos 4412 quad-core combined with 32GB of internal memory and 2 GB of DDR3 is said to be one of the best hardwarecombinations for a tablet. Users can avail of two cameras are also available, a VGA snapper in front and a 2-megapixel at the back. The tab is due to release sometime this month.

Price: BD155

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Nokia fans have a reason to smile! Asha 310 is a new and powerful combination of Dual SIM plus Wi-Fi in the same device, a first for Nokia smartphones. This newest addition to the Asha Touch family of smartphones features a 3-inch scratchproof, capacitive touchscreen, 2-megapixel camera and comes with 4GB memory card with support for a further 32GB of external memory. Users can enjoy a wide range of applications that make socialising and staying connected easier. The smartphone is available in black, white and golden light.

Price: BD40

Feature Lifestyle Luxury

Ray-Ban – Wayfarer

Laya by Ne’emah Playing on sweet vanilla tones surrounded by a musky number, this unisex fragrance is your next fashion elixir!

A season’s must-have, Wayfarer sunglasses come in a contemporary colour palette! They are also available in a polarised lens option.

Lifestyle Luxury fashion for the modern man!

Clinique – Dark Spot Corrector Tommy Hilfiger – Men Chronograph Time just got precious with this stylish piece by Tommy Hilfiger.

Sway your wrist in style!

Stressful lives are so common today and they sure can take a toll on your skin. The solution is here – Clinique’s Dark Spot Corrector serum reduces the appearance of sun spots, dark spots, acne scars-on all skin types and tones in just four. It also helps reduce ingrown hair.

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Last Word

The 5 Mental

Attitudes of Winners

By Mike Brooks

S

uccess in life starts by first developing and maintaining an expectant attitude of success.

Simply put, all top performers expect that they are going to succeed, and because of this they consistently take the actions that lead them to achieve their goals and become successful.

It is their mental attitudes that allow them to meet obstacles, set backs and temporary failures with a new resolve to keep trying, or to try something different, until they succeed.

If you are serious about changing your life, then get in the practice of working on your mental attitude first. Adopt these 5 mental attitudes of winners to powerfully change your ways of thinking and to permanently change your results.

1. Understand natural law. There are

many absolute laws in the universe - the law of gravity, the laws of mathematics, etc. The most powerful law in terms of your success is the law of attraction.

In short, whatever you hold in your consciousness you will manifest in your life.

So if you don’t like your results, then look at their source (your thoughts, expectations and beliefs), and work on changing those first. Once you do, your results will automatically change.

2. Stop blaming. So many people blame the economy, their boss, their family, etc., for their failure. But the truth is this: 50

Gulf Insider March 2013

You are 100% responsible for your life and your results. Winners accept this and that’s where their power comes from.

When you accept 100% responsibility you then gain access to 100% of the solutions.

3. Stop struggling. Success is easy

because all results are simply an out picturing (a physical manifestation) of what we hold in our consciousness (our beliefs). The reason most people struggle (and fail) is because they try to achieve something without first changing their mental attitudes.

Winners recognize and work on changing their attitudes and beliefs and expectations first, and then they easily and naturally take the actions that lead to the achievement of their goals.

4. Live life’s formula. Most people live

under the false belief that if they HAVE a lot of money, then they would DO the things that would allow them to BE happy. This is totally backward.

The real formula for success is to first “BE”- act, feel and live in your mind as if you had already achieved your goal and then you will naturally DO the things (take the actions) that will enable you to HAVE what you want. This is life’s true formula, and the sooner you live it, the sooner you’ll experience success.

5. Stop worrying. All thoughts turn into

things. If you constantly worry about not

If you are serious about changing your life, then get in the practice of working on your mental attitude first. having enough money, you will never have enough money. If instead you develop a money consciousness (see the banner at the end of this ezine for MP3 hypnosis recordings to help you do this), then you will attract all the money you need. Believe me, there is enough money in the world for you to have the things you want!

Carefully monitor your thoughts right before you fall asleep at night and first thing in the morning. Then ask yourself, “What am I asking from the universe every single day?” Chances are, what you are dwelling on has already shown up in your life.

I hope these 5 mental attitudes of winners resonated with you. Like gravity, they work in and on your life whether you consciously practice them or not. The key is to understand and use them purposefully to achieve the results you want. Once you do, you will manifest success. GFI

Bahrain International Exhibition & Convention Centre

16-18 April 2013

Beverages and Soft Drinks

Health and Organic Foods

Food and Beverage Technology

Food Processing Technology

Ready to Eat Products Frozen Foods

Showcasing Bahrain’s Food and Hospitality sectors and hosting exhibitors from all over the GCC. Organised by

Fine Dining Hotels and Restaurants

Supported by

Sponsored by

Media Partners

For further details please contact Amal Abdulla, Senior Sales Officer on Tel: +973 1755 8898. Mobile: +973 3387 9969, or email: amal@beca.bh Anas A. AlAmer, Senior Sales Officer, Bahrain Exhibition & Convention Authority (BECA), Email: anas@beca.bh, Direct line: +973 1755 8854. Direct Fax: +973 1755 5513.

www.foodexpbh.com