Dubai or not Dubai?

August Round-Up

2008-08-26T12:14:00.002+04:00

The last few weeks have seen no shortage of big stories. Controversy, debate, corruption – we have seen it all. To put things in perspective, here are some of the stories that made headlines recently in the Gulf.

•Emirates took delivery of its first of 58 Airbus A380s. The mammoth aircraft touched down on schedule in Dubai on Tuesday, 30th July. Its spacious and luxurious cabin features 14 first-class suites and 76 business and 399 economy-class seats. Adding to a new luxury standard in the skies, first-class passengers will be able to take a shower at 43,000 feet. Additionally, the economy class has also been revamped benefitting from the aircrafts overall superior interiors and hi-tech options. For example, a ‘mood lighting system’ is installed to reduce the effects of jetlag.

•31 years old, Lebanese singer, Suzan Tamim was murdered in her Dubai Marina apartment. This was no petty crime and certainly one of the most high-profile that Dubai has seen. The story has ‘Hollywood’ written all over it with rumours of the stars troubled past which included 2 failed marriages and a string of controversies. According to Gulf News, the star spent much of her short life between courts, police stations and hideouts. Unfortunately, the talented singer’s life ended in equally dramatic fashion with police going on an international manhunt to track her supposed killer. The story continues.

•On August 14th, Gulf News reported that two senior Dubai executives, Istithmar vice-chairman Adel Al Shirawi and chief financial officer Feras Kalthoum, are both under investigation over alleged financial irregularities at their former company, Tamweel. Almost simultaneously, the same paper reported that Nakheel has found itself in the middle of a storm over rumours that its "second in command" - a UAE national - has been arrested for bribery. When asked directly by Gulf News whether someone had been arrested, the Nakheel spokesperson neither confirmed nor denied the allegation. Both Tamweel and Nakheel are major players in Dubai’s property boom. While the former is the largest real estate finance provider in the UAE, Nakheel is Dubai’s premier development company. 3 days after the news broke, investors continued to dump Tamweel stocks. The company's shares fell 4.09 per cent on Sunday, extending the losses to 9.8 per cent in the last two sessions.

•In June, the new Salik toll gate was installed on Al Maktoum Bridge. The event was a trigger for heated debates surrounding the success (or failure) of the whole toll system. With just about a year having gone by since Salik was introduced in Dubai, people used the media to express their frustrations (and, in some cases only, their support) toward Salik. The new toll gates between Maktoum Bridge and Safa Intersection will be operational from the 9th of September.

•The Emirates National Oil Company (ENOC) has introduced a self-service system. Under the system, which is currently being implemented as a trial at 10 stations, customers have to park in front of the pump, switch off their engine, go inside the store and pay the amount they want after mentioning the pump number and desired product. The pilot project has received a mixed reaction from customers citing the pros and cons. One recurring concern seems to revolve around the expected loss of a number of jobs.

•“I kissed a girl and I liked it”.....those are the lyrics of a new song that is the current UK number one and third in the US singles chart. Nothing controversial about that you would think, unless of course the song is being sung by a girl. The song has drawn criticism for promoting lesbianism and promiscuity, and raised fears about the influence of Western culture and music on Arab youths. It has been banned by some radio stations in the UAE.

•As of August 1st, the UAE introduced new visa rules accompanied with new visa charges. As with most rulings, though it was not up for negotiation it didn’t stop people from expressing their approval or disapproval. While perhaps the cost factor is debatable, in general the new rules are a positive move. As was best outlined by Brigadier Nassir Al Minhali, director-general of the Abu Dhabi Naturalisation and Residency Department. "The recent modifications in the laws governing the entry and stay of foreigners in the UAE are intended to put an end to violations of this law and tighten rules for issuing visas by companies and individuals to guarantee they will not do so for trading purposes," he told the official news agency Wam. "These rules, especially those governing tourism visas, will adversely affect this important sector. On the contrary confining the issuance of such visas to authorised companies will give them a chance to achieve their objectives in development and expansion because many visitors used to come to the UAE on visas issued by non-specialised companies or individuals," he said.

•The dollar is finally staging a recovery. As reported in Business 24/7, the currency rose against the pound for the 11th consecutive day on Friday, to $1.85 – its longest winning streak in 37 years. In July, one pound would buy two dollars. At the same time, the dollar climbed to its strongest level in almost six months against the euro, which fell to $1.47. In the past month alone the greenback has risen by nearly five per cent against the euro. While the paper also warns against premature celebrations, fingers crossed we go into the new year with a more positive outlook.

Having said that, the Holy month of Ramadan is almost upon us. If there is any time when we can look back and appreciate what we have, this is it. I am sure we can agree that in spite of the rampant inflation coupled with the stress of daily life, i.e. traffic, heat, Salik, bureaucracy etc, things could be worse. One look at current events around the world and I think we can agree that we still live in one of the nicer places on the planet. On that note, here’s wishing you all Ramadan Kareem and a Happy New Year.

Superlatives vs. Jargon

2008-06-24T12:01:00.003+04:00

On my way to work this morning there was an interesting conversation on Dubai Eye’s Business Breakfast; a radio show dedicated to the region’s business and economy in general. The speakers were talking about Dubai’s addiction to jargon. It seems people in Dubai have moved on from their ‘superlative’ phase into using mind-numbing jargon to describe their services or their companies. One of the most popular words currently doing the rounds is leading. Everybody’s company is the leading one; be it a property developer, a bank or even the small laundry service down the road.

The property sector is perhaps the best point of reference for jargon. It showcases some of the most incredible use of words that sound very good, yet make no sense - an art of writing no doubt. A good one highlighted on the show was the use of the phrase community-style living. And quite rightly, the presenter asked ‘as opposed to what?’. Other words include mixed-use development, global standards, internationally acclaimed, lifestyle, eco-friendly, and green initiatives. While it made for entertaining radio, I am sure there is a serious side; especially when you think about unethical advertising and companies making unfounded claims. On a lighter note, it certainly was better than listening to people moaning about traffic, rents, inflation, blah, blah, blah.

Rent – That Old Chestnut

2008-05-20T11:00:00.000+04:00

It has been quite an interesting week in Dubai. Of course, the announcements and launches are a regular feature and the last few days didn’t disappoint. However, what perhaps made for most interesting reading to many people was a Gulf News report on rising rents.

After torturing and uprooting the ordinary lower and middle class, it looks like the ‘rent issue’ is now also catching up to the commercial sector. We could very well see a reshuffling of the region’s companies to other less expensive, neighbouring countries. However, is that really going to help? After all, it is demand that is the major contributor to price increase. So an exodus of people to another country will inevitably lead to the same problems over there. We have already seen that in Qatar, for example.

What is surprising is that during the same week I saw concerns about rising commercial rents in the region, we had the 13th Annual Middle East Council of Shopping Centres Convention in Dubai. Emirates Business 24/7 covered the event and reported that industry experts were expecting the “explosion in retail real estate development” to last more than a decade. At the same event, Nakheel announced it will be opening more than five shopping malls. These are certainly very bullish statements and gestures in times of rising inflation rates. Whilst we are perhaps still better off than other parts of the world that have been experiencing a major slowdown, the effects are gradually trickling towards the region. We have already seen the price of essential commodities increasing. Of course, we have to applaud the government for controlling these increases. However, with rising oil prices and a global shortage of food supplies, we could see a tightening of the purse-strings by the common man. We could also see diminishing tourist revenue.

The implications of the global slowdown could mean fewer people travelling and hence fewer tourists coming into Dubai. Fewer tourists equals less spending. It is a vicious circle. The good news is that we are not there yet and unless everything that can go wrong does go wrong, the UAE will continue to prosper. On a global perspective, the UAE is still a great place to be in. By all accounts, it is still booming. We have to remember that as a country it is still a relatively ‘new’ state and it is going through several ‘firsts’. Twenty years ago, the country experienced a completely different set of problems. Most of the people who came to the Emirates back then did their time so to speak and have gone on to become extremely successful professional and/or business people. While they undoubtedly worked hard, I am sure without the support of the country and its people many of them would have long chosen the path of migration.

One’s loss is another’s gain

2008-05-13T17:49:00.000+04:00

According to a report in ArabianBusiness.com, the subprime mortgage has claimed over 15,000 jobs since the beginning of the year. The number is expected to rise to almost double that by the end of the year. As expected, most (if not all) of these jobs were in the financial sector. The situation has come as a blessing in disguise for the Gulf region. With the financial and banking sectors screaming for top talent and used to poaching it from their competitors, they certainly could do with the skills and experience of these individuals.

However, the article does highlight a major concern in the shape of the USD vs. Dirham peg. With the exception of Kuwait, this is a regional obstacle and companies need to offer very attractive salaries if they want to compete with other major financial centres like London with its solid sterling pound. The same can be also attributed to other European cities that are riding high on the success of the Euro.

Dubai: the City of Superlatives

2008-04-30T17:47:00.001+04:00

When I first moved here, Dubai’s PR engine had just got going. Today, it is undoubtedly working overtime and the city is all about superlatives; the biggest mall, the tallest building, the most luxurious hotel, the largest advertisement hoarding, etc. There isn’t a day or week that goes by without a major launch or announcement that is a first of its kind or possibly the grandest. Talking of advertisements, the recently published Advertising Spend Report of Pan Arab Research Centre showed that advertising spend in the UAE has reached $1.3bn in 2007 from $869, that’s a 50% increase. Therefore, it came as no surprise when recently Dubai’s Roads and Transport Authority (RTA) announced that within the first two weeks of its Dubai Metro Naming Rights project launch, over one hundred and sixty companies had expressed interest. Another 160 had already submitted official Request for Information (RFI) documents through the RTA website. The project essentially gives organizations and institutions the opportunity to associate their name to 23 stations (from a total of 47 stations). According to a report on ArabianBusiness.com, the RTA has received interest from as far afield as Japan, Greece, Spain, the United Kingdom and India, surpassing all expectations. By the way, in keeping with tradition, the Dubai Metro Naming Rights project claims to be the first programme of its kind, which uses funding raised through a naming rights initiative to improve transport services.

Photos of Dubai

2008-04-29T16:42:00.000+04:00

I just came across a photo album of Dubai on flickr entitled “The World’s Fastest Growing City" (http://flickr.com/photos/broknman/sets/72157594154414242). Well worth a look if you want to see the extraordinary development that’s going on here.

IMF Report

2007-12-18T16:27:00.000+04:00

The latest International Monetary Fund report on the UAE forecasts a 60 per cent rise in GDP from $185 to $294bn from 2007 to 2012.

This study is already outdated and understated, since it assumes that oil prices will remain in the mid-$60 per barrel range for the forecast period. Oil is currently hovering above the $90 per barrel level, and shows little sign of falling.

More significantly, non-hydrocarbon revenues are set to double to $49bn, since domestic investment as a percentage of GDP will continue at the very high level of 21-26 per cent in order to promote economic diversification. Total investment in Abu Dhabi over the decade will be a whopping $161bn (driven by huge oil revenue), $63bn in Dubai and $2bn in Ras Al Khaimah.

Interestingly, there has also been a regional spillover effect from the growth in the UAE economy, with nations such as Pakistan and Egypt benefiting from UAE direct investment, as well as Jordan, Syria, Morocco and Tunisia.

The report comes with a warning. With an economy that is growing so quickly, a key challenge is to contain inflation, driven by housing rental price increases and strong demand growth. Going back to the old dollar-peg issue that I’ve spoken about in previous posts, the IMF says the authorities remain committed to the US dollar peg to the dirham. Most exports and imports are US dollar denominated and that a large proportion of foreign assets are invested in US dollar instruments.

Burj Dubai - Tallest Buildings

2007-12-15T16:35:00.000+04:00

Living in Dubai, I’m used to seeing amazing architectural structures every day. Even so, some of the designs featured in this great little review of skyscrapers are breathtaking (http://www.slate.com/id/2139722/). There is a great image of the 45-story residential tower proposed for Dubai by Ali Rahim and Hina Jamelle., an example of “Digital architecture.

Burj Dubai is conspicuous in its absence, although it seems to be all over the internet at the moment:

(Source: http://www.flickr.com/photos/pete_the_painter/1517577107/)

A number of blogs and websites are carrying stories about the building breaking the record for the world’s tallest freestanding structure. The tower is now more than 555 metres (1,831.5 feet) tall and has surpassed the 553-metre (1,824.9-feet) CN Tower in Toronto, Canada, which has held the record for the world's tallest free-standing structure since 1976. More than 320,800 cubic metres of reinforced concrete and 63,300 tonnes of reinforcing steel have been used in the tower's construction so far, and developers Emaar Properties has opted not to disclose the tower's final projected height. Apparently, they have the ability to add on more floors at a later date to ensure that the tower retains its record-braking status!

Everyone seems to be forgetting the Petronius Platform, a deepwater oil platform in the Gulf of Mexico. It’s a massive 609.9 meters (2,001 feet) high. Some people would say that this is the tallest free-standing structure in the world, although only 75 meters of the platform are above water!

(Source: http://www.flickr.com/photos/ccgd/50315379/)

I know where I’d rather live!

Islamic Finance

2007-12-12T16:23:00.000+04:00

Islamic Finance is now a multi-billion dollar global industry, with over 270 institutions operating in 48 countries and holding more than US$300 billion in assets. As Sharia’a compliant products become more sophisticated they are growing in popularity. ‘Non-traditional’ Islamic funds have grown from just 12 in 2001 to over 100, and there are currently over 120 Islamic equity funds in existence globally totalling US$16bn in assets under management. Western majors are joining the fray by launching similar Islamic equity products.

For those of you who are still in the dark, here is a bite-size guide to the fundamentals of Islamic financing:

Basic Tenets
Islamic banking refers to a system of banking or banking activity that is consistent with Fiqh al-Muamalat (Islamic rules on transactions).

Islamic law prohibits riba, the collection and payment of interest. It also prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as pornography). There is an emphasis on ethical investment. While Islamic law prohibits the collection of interest, it does allow a seller to resell an item at a higher price than it was bought for, as long as there are clearly two transactions.

Amongst the common Islamic concepts used in Islamic banking are profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah).

Fixed-income, interest-bearing bonds are not permissible in Islam. Sukuk are securities that comply with the Islamic law. Total global issues of sukuk – Sharia’a compliant asset-backed securities - are expected to reach US$27 billion this year.

It is generally accepted by Muslim jurists that the operation of conventional insurance does not conform to the rules and requirements of Shariah. They argue that it involves the elements of uncertainty (Al-gharar) in the contract of insurance, gambling (Al-maisir) as the consequences of the presence of uncertainty and interest (Al-riba). Takaful - Sharia’a compliant insurance – is currently growing by approximately 20% per year. Takaful is based on the idea that what is uncertain with respect to an individual may cease to be uncertain with respect to a very large number of similar individuals. Insurance by combining the risks of many people enables each individual to enjoy the advantage provided by the law of large numbers.

Participatory arrangements between capital and labor reflect the Islamic view that
the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing lender to monopolize the economy.

Islamic banks employ advisory consultants to ensure that the operations and activities of the bank comply with Sharia’a principles.

How it works
For example, in an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment. In order to protect itself against default, the bank asks for strict collateral. The goods or land is registered to the name of the buyer from the start of the transaction. This arrangement is called Murabaha. Islamic banks handle loans for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paid).

Objections
Many Muslims and non Muslims have opposed Islamic finance, claiming that it deals in interest but conceals it through legal innovations. Islamic finance bears a striking resemblance to “contractum trinius”, a method devised by European bankers and merchants during the Middle Ages designed to circumvent the Church’s prohibition of fixed interest payments. A set of three separate contracts were presented to someone seeking a loan: an investment, a sale of profit and an insurance contract. Each of these contracts were permissible under Church law, but together replicated the effect of an interest-bearing loan. In early sixteenth century Europe, it was realized that the complete prohibition of lending for profit impeded economic development. This was especially true for the merchants, traders, and industrialists who needed extra capital to expand their commercial enterprises. In the end, Henry the VIII – amongst other things – overturned the ban on interest-bearing loans. "The Act Against Usury" was passed by the English Parliament in 1545, providing for an interest rate ceiling of up to "ten in the hundredth" (ten percent). This became the foundation of English usury law.

Dubai Film Festival

2007-12-09T16:28:00.000+04:00

The Dubai International Film Festival is due to take place this year from December 9-16. Last year the festival showcased a wide selection of features, shorts and documentaries from 47 countries around the world. Algerian filmmaker Jamila Sahrawi took home the grand prize of USD 50,000 and the gold statue for her winning feature, ‘Barakat’.

DIFF, as the organisers affectionately call it, says it has received a huge amount of submissions for its second annual Muhr Awards for Excellence in Arab Cinema. Unsurprisingly, Muhr awards boast some of the most generous cash prizes among international film festivals. The festival also received numerous entries from the UAE. Masoud Amralla al Ali, DIFF’s Artistic Director and the Coordinator General of the Muhr Awards competition, said, “Our long-term goal for the Muhr Awards is to showcase excellence in Arab cinema, which epitomizes the talent and passion that is coming from this region.”

The festival is turning into an effective platform for promoting Arab films. In total, it has received over 300 films that centre on the issues, dreams, and stories of the Arab world. The official website says that “the competition received a higher amount of documentaries than features or shorts, reflecting an interest in the Arab world in cinema verite and news reporting on the many issues facing the region.” The majority of this year’s entries are from the Maghreb and Egypt, followed by Syria, Palestine, Lebanon, and the United States. A broad range of European countries also sent entries, including Norway, Holland, Luxembourg, Greece and Italy.

Speaking the Same Language

2007-12-04T16:21:00.000+04:00

Gulf News has a feature on a linguistics professor at the American University of Sharjah who thinks that the top five languages used throughout the UAE are English, Arabic, Urdu, Malayalam and Hindi (http://archive.gulfnews.com/articles/07/02/20/10105942.html). Dr Fatima Badri, English and Linguistics professor at the American University of Sharjah, says that the empahais on learning English could endanger "mother languages".

The most striking part of her thesis is that, while there is waning interest in Arabic in the Arab world, there are increasing numbers of non-Arabic speakers learning the language. Pointing to Arabic’s decline, the 2003 UN Arab Human Development Report said that only 10,000 books were translated into Arabic in the last millennium - equivalent to the number translated into Spanish every year.

In the “2015 Dubai Strategic Plan” HH Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, stressed the importance of the language in the preservation of the UAE's national identity.
Unesco reckons that over 50 per cent of the world's 6,000 languages are endangered. 96 per cent of the world's 6,000 languages are spoken by 4 per cent of the world's population, and 90 per cent of the world's languages are not represented on the internet. Most shockingly, one language disappears every two weeks.

Book Review - Oil & Development

2007-12-01T16:34:00.000+04:00

Rosemarie Said Zahlan. ‘The Impact of the Early Oil Concessions in the Gulf States’, in Richard Lawless (ed.), The Gulf in the Early 20th Century: Foreign Institutions and Local Responses

Zahlan begins by asserting that the economic, political and social effects of early oil concessions in the Gulf states “are well known and need no elaboration”. She chooses to focus upon the “sequence of phases” which transformed the Arabian Peninsula (almost) beyond recognition. Zahlan notes the strategic importance of the Gulf states in facilitating imperial communications between Britain and India, realised in the various “air agreements” signed between local rulers and the British government. She argues convincingly that British negotiations concerning oil concessions were informed by strategic, rather than economic objectives. It’s worth drawing attention to the conflation of public and private interests which guided such negotiations; the fiercely guarded imperial relationship between local ruler and British representative was expanded to include British oil companies. This was in fact the inauspicious beginnings of a sustained (and arguably on-going) period of oil diplomacy, which in the following decades, would come to colour Anglo-American relations.

Where Zahlan’s analysis really stands out, is in its treatment of shaikhly authority; the transformative effect of early oil concessions upon the nature of rulership in the Gulf states. Oil concessions meant a recalibration of the relationship between Gulf rulers and British imperial power; the profit-potential of exclusive oil concessions empowered rulers to negotiate generous economic terms by forcing oil companies to outbid each other. The benefits of oil were not simply commercial, they were also political. Recognising the umbilical link between British commercial and strategic interests, Shaikh Abdallah bin Qasim, the ruler of Qatar, granted an exclusive oil agreement to a British company in exchange for a guarantee of British military protection against possible attack from the Wahhabi-Saudi state. On a domestic level, the huge revenues generated by oil concessions disrupted the relationship between the shaikh and his people. Oil income reduced the ruler’s dependence upon the shaikhdom’s mercantile community and thus limited the political agency of that community within the internal affairs of the shaikhdom. Zahlan states that “the ruler’s income from the agreements was personal to him and not to society at large”; financial independence considerably reduced the ruler’s accountability to the populous. Zahlan cites Bahrain as an example of how the distance between the shaikh and his subjects widened with the advent of administrative reform. The traditional majlis, which promoted dialogue between the ruler and his people, was undermined by the creation of a “modern” system of government, divided into a serious of departments. It is fair to argue that this bureaucratic division of labour has permanently altered the political landscape of the entire Gulf, ceremonialising (and in the process, trivialising) the tradition of direct contact between the ruler and his people.

Zahlan’s argument concerning the effect of early oil concessions upon the delineation of territorial boundaries in the Gulf is of particular interest. She argues that the commercial imperative to distinguish between disparate concessionary zones was diametrically opposed to the tribalism prevalent in the Arabian Peninsula. This resulted in a number of territorial disputes, “amply illustrated in the esoteric patchwork map which makes up the United Arab Emirates (UAE) today”. Zahlan conducts her analysis of the early oil concessions within three distinct frames; the international, the regional, and the local. This method serves to visually clarify her argument and emphasise the wide range of factors which must be considered in order to fully understand the subject. However, it also serves to oversimplify the subject by failing to stress the overlap between international, regional and local forces in the Gulf states. Having acknowledged this shortcoming, it must be said that Zahlan undoubtedly succeeds in conveying the overall effect of early oil concessions, their profound effect upon social, political economic conditions in the oil-producing Gulf states.

Taxi!

2007-11-28T16:04:00.000+04:00

A fleet of 10 helicopter taxis will be available nationwide from 2008 to transport Dubai executives from A-to-B in an effort to beat congestion.

Car Taxis (the company offering the service) are hoping to roll the service out to the rest of the UAE in 2009.

Hmm, do you think anyone would notice if my taxi expenses suddenly went up in 2008!

INSEAD opens up in Abu Dhabi

2007-11-27T16:05:00.000+04:00

Insead, which already has two campuses in France and Singapore, has opened a centre for executive education and research in Abu Dhabi School Dean Frank Brown commented, “Our presence in the Middle East will be a tremendous advantage to Insead. The knowledge we build there will contribute to enriching our teaching and research activities to the benefit of all our participants. Thanks to the centre, we have an opportunity to have a huge impact on a region that is so important to the rest of the world for many different reasons.”

The new centre will offer both company specific and open enrolment programmes for executives, with a focus on the Middle East. Its inauguration ceremony was held in September at the Emirates Palace Auditorium. His Highness General Sheikh Mohammed Bin Zayed Al Nahyan said: “INSEAD’s move into the GCC’s executive education and development sectors is a landmark development for the region’s local and expatriate business communities. It also serves as a vivid demonstration for the UAE’s growing importance as a global business centre, and is in line with Abu Dhabi’s vision of becoming an internationally recognised venue for higher education and cultural destination.”

INSEAD’s first open enrolment programme for the region will be the Managing People in the Middle East programme, in April 2008. The INSEAD Global Leadership Centre is planning a study on the leadership characteristics of successful women and executives in the Middle East. There will also be a focus on the area of healthcare, with a collaborative research programme which aims to health sector research and promote thought leadership and provide top-tier health sector management education.

UK Taxes vs. Dubai Taxes

2007-11-23T16:10:00.000+04:00

No brainer!

Live in the UK and pay Income Tax, Corporation Tax, VAT, Capital Gains Tax, National Insurance, Inheritance Tax, Stamp Duty and more.

OR

Live in Dubai and pay no Corporation Tax and no Income Tax.

Hmmmmm?

Building Profits

2007-11-20T16:13:00.000+04:00

Just been reading about Damac Holding, one of the UAE’s largest residential property developers. The company has 79 housing blocks under development, and typically sells 80% of the units in a given tower before it begins building. This means that it will have secured 40% of the total built value of the finished site, breaking even before it has started construction!

Think I might be in the wrong business!

DIFC week

2007-11-17T16:30:00.000+04:00

DIFC week will run from 17-24 November 2007. There will be 100 speakers and 12 different events – as far as I can tell that works out at 8.3 speakers per event.

There will be a series of events which come under the grandiose bracket of “Financial Opportunities for the Third Millennium”; lectures on emerging markets, Islamic banking and carbon trading.

Some pretty impressive speakers have been signed up, including Steven Levitt, co-author of the bestselling “Freakonomics”. No doubt the cost to the organisers was astronomical, although I’m sure the Dubai International Financial Centre can afford it (see previous posts). You can view the programme for the week at http://www.difcweek.ae/uploads/pdf/DIFCWeek_Brochure.pdf. It’s not cheap, but if you work for a company with deep pockets then why not persuade/bully them into coming along?!

Book Review - Saudi Arabia: Power, Legitimacy, and Survival

2007-11-17T16:15:00.000+04:00

Reaction Paper - Tim Niblock, Saudi Arabia: Power, Legitimacy, and Survival (2006), Chapter. 3: Faisal and the New Polity, 1962–79

In this chapter, Niblock argues that ever-increasing oil revenues allowed the Saudi Arabian state to consolidate its political hegemony between 1962 and 1979. State income from oil skyrocketed due to increased levels of production and a rise in market value. This had a bilateral effect, reducing the establishment’s economic dependency on tribal and religious units whilst simultaneously facilitating a programme of social and economic development, characterised by the provision of public services and the modernisation of the Saudi industrial sector. These improvements, coupled with extensive administrative and legal reforms, brought the Saudi authorities closer to the people, and abolished the need for tribal and religious leaders to act as negotiators between the royal family and its subjects; “there was little room left for intermediaries”.

The depth of Niblock’s research is demonstrated by his extensive and instructive use of statistics. He states that, “in 1962, the government employed a total of 36,776 administrative and clerical personnel; by 1971 this had grown to 85,184 […] in 1979 the total number exceeds 250,000”. By incorporating a large segment of the population into the administrative infrastructure (26% of the labour force by 1979), the state effectively consumed and integrated much potential opposition, creating a “new middle class” in the process.

Administrative and industrial reform came at the expense of the agricultural industry. Reading Niblock’s research, it is striking how readily the establishment recognised the potential dangers of widespread rural opposition, embarking upon a process of sustained subsidisation which operated alongside a system whereby family members were granted employment by state bodies such as the National Guard. Niblock argues that, “public sector employment constituted an instrument through which potential opposition could be countered”.

The relationship between the state and its subjects became much closer and more direct as the administration continued to skilfully furnish its dependents with a vested interest in maintaining the status quo. Put simply, increased domestic expenditure was a small price to pay for continued political hegemony. Niblock manages to demonstrate this point using a range of statistical sources, without resorting to bold conjecture. Thus, this chapter remains convincing throughout.

Fore!

2007-11-14T13:39:00.000+04:00

There are some great golf clubs here, offering brilliantly conceived and put together courses and world class facilities. Dubai Golf ‘s website will give you a good overview of what’s on offer, including the Emirates Golf Club, the Dubai Creek Golf Club or the Nad Al Sheba Club (http://www.dubaigolf.com/dgo/web/golf.html).

The Emirates Golf Club has been called ‘the Desert Miracle’ because it was the very first all grass course in the GCC region. Today the club is home to two complete championship courses called Majlis and Wadi, and as you might expect the club house is outstanding to look at out both inside and out. The club also great corporate and conferencing facilities.

The Dubai Creek Golf Club is located next to the water and incorporates a yacht club. The UK based “Golf World” magazine recently named the club’s course one of the top 100 in the world.

The Nad Al Sheba Club shares a site with the Nad Al Sheba Racecourse. It is fully floodlit, handy for busy executives who want to squeeze a round in after work. Just be careful to land your ball on the right course!

Broken Record

2007-11-10T16:17:00.000+04:00

“The Dubai Life” reports that UK advertising firm Ad-Air has created the world’s largest advertising banner at Dubai International Airport. The advertisement for Sorouh Real Estate measures 200 by 100 metres and covers 20,000 square metres, equal to three football pitches in sizes. It lies square in the middle of the main flight path, where it will be viewed by an estimated 14 million people over the next year. The site will be illuminated at night. A Guinness Book of World Records inspector has granted the ad official record status

Stephen Jones, managing director of Ad-Air Middle East told The Guardian “It is fitting that our first advertiser should be a real estate company, given the current explosion of property development in the region”.

Sorouh aims to fill the site with one million faces as part of a corporate charity initiative. The company will donate $1 to the UAE Red Crescent for every photograph uploaded free to www.sorouhfaces.com.

Ad-air has rights to 30 airports including London Heathrow, Paris Charles de Gaulle, Los Angeles International, Chicago O’Hare and Tokyo Narita. The price of the ads ranges from £40k to £80k per month depending on location.

Paul Jenkins, MD of Ad-Air said last month the advertisements would appear in “clutter-free environments and moments free of any other commercial messages”.

Check out some images at http://www.thedubailife.com/index.php/main/blog.

Exec-Appointments acquired by Financial Times

2007-11-06T16:42:00.000+04:00

It was announced yesterday that the Exec-Appointments business has been acquired by The Financial Times (part of the FTSE 100 Pearson Group). I have copied the 'official' annoucement below, but this is obviously a fantastic leap forward for Exec-Appointments. We are now associated with the best business media brand in the world. It does feel great to now be part of a company with offices worldwide, and the capacity to help us accelerate our growth and expansion - and to sustain it. What's also important for me is that it really reaffirms our commitment to the Middle East, Asia and other key global locations.

FINANCIAL TIMES TARGETS ONLINE RECRUITMENT LEADERSHIP THROUGH ACQUISITION OF EXEC-APPOINTMENTS
The Financial Times has made a significant move towards securing online recruitment market leadership with the acquisition of leading online recruitment company, Exec-Appointments.

Exec-Appointments is a well-established brand which focuses on the high-earning executive sector and has a major presence in online recruitment. With a successful core product (exec-appointments.com) - which focuses on senior management and which boasts the highest proportion of c-suite, director and senior manager visitors and highest average income visitors to any UK online job site – and two specialist products targeting MBAs and Non-Executive Directors, Exec-Appointments is an ideal vehicle through which the Financial Times can develop the non-print side of its recruitment business.

Synergies between the two businesses made the choice of Exec-Appointments a clear winner. The Financial Times’ global presence, brand and strength in finance markets and jobs complements Exec-Appointments’ strength in non-finance jobs and products and its successful business provides not only a respected reputation and core clientele but also an established technology platform from which the new business can develop. FT Conferences will bring added impetus to Exec-Appointments’ specialist conference and seminar activity.

John Ridding, CEO of the Financial Times, notes: “Online recruitment is a key growth area and while the Financial Times is highly successful in print-based recruitment, this acquisition will allow us to crack the burgeoning web-based sector. We can extend the business into Asia and the US and seriously upgrade our recruitment and training offering to both customers and advertisers.”

“Exec-Appointments’ specialist arms, MBA-Direct.com and Non-Execs.com will be of particular interest to our customers and advertisers and we’ve been aware that we needed to upgrade our general online recruitment offering. With no clear leader in the sector, we believe that Exec-Appointments will rapidly step into the breach.”

Exec-Appointments CEO, Betty Thayer adds: “Although Exec-Appointments has been extremely successful and has established itself as a major player in UK and Middle East online recruitment, joining with the Financial Times will allow UK and international expansion. We have particular strengths in specialist knowledge and customer service which we can now roll out to a wider audience and, in particular, develop the financial sector part of the business. We believe the new offering will increase our appeal to larger corporate clients as well as giving us the opportunity to develop new products, both for Financial Times audiences and for Exec-Appointments customers.”

Offshore journalism

2007-10-31T17:37:00.000+04:00

The Times newspaper has relocated its business desk from London to Dubai for the Times Gulf Business Forum, taking place between 28 October and 4 November 2007.

Journalists will be talking to over 200 CEOs in the UAE, Bahrain and Qatar, discussing regional “commercial trends, new sources of capital and the region’s movers and shakers”. The press release went on to describe “The Gulf As A Crucial Centre Of Global Business”, with business editor James Harding commenting:
“The Gulf is making itself felt in companies and markets around the world. We want The Times […] to be at the forefront of activity in global business. So, for the first time we are moving The Times business desk offshore for a week: a team of reporters, columnists and editors will be based in Dubai and Abu Dhabi looking at the commercial trends that are remaking the Middle East, the new sources of capital that are investing internationally and the people that are transforming the Gulf into an economic powerhouse.”

The Times is currently printed and distributed on the morning of publication in the Middle East under a licensing agreement with the Saudi-based SAB media group. The international edition, printed in the Middle East, is published five days a week, at 64 pages, with a 96-page Saturday edition and the 96-page broadsheet Sunday Times. Tariq Qureishy, CEO of SAB welcomes the initiative, saying that “The Times world renowned journalistic team will be able to deeply engage with the people who are currently shaping this region.”

Air carrier set to float

2007-10-31T15:37:00.000+04:00

News hot off the press is that state-owned air carrier Emirates is considering a stock market floatation. This follows the recent IPO announcement from holding company Dubai World, which said it would give up a 20% stake in subsidiary port operator DP World, one of the world's largest container port operators. Emirates spokesman Boutros Boutros says that the decision to go public "rests in the hands of our owners, the government of Dubai."

Executive Job Update, 30/10/07

2007-10-30T16:20:00.000+04:00

Lloyds TSB International expands corporate product range

Caitriona Ledwidge is moving from Lloyds TSB International in the Isle of Man to join Lloyds TSB in Dubai. She will introduce corporate customers to offshore corporate banking services offered by Lloyds TSB International in the Channel Islands & Isle of Man. Caitriona commented:

'I am delighted to have the chance to relocate to Dubai, and provide Lloyds TSB's many corporate customers with this additional new offshore service. As well as helping our existing clients, I am looking to develop new relationships with businesses based in the region and potential introducers to the bank',

Caitriona’s transfer to Dubai comes as Lloyds TSB expands its corporate banking presence to meet the increasing demands of businesses in the Middle East.

Single currency in the news

2007-10-30T14:25:00.000+04:00

I've managed to get hold of a copy of the UK's Telegraph Business News section, which has an article on the GCC single currency. Some chunks are quite interesting:

"The issue is vital, for the region, for currency markets worldwide and for the US dollar in particular."

“Leaps in the oil price mean the Middle East is once again one of the world's richest regions, pumping money into the City and Wall Street. Most of this cash has been dollar denominated, since the Gulf states receive their oil revenues in dollars.”

“If the Gulf states were to turn their back on the dollar and float a single currency, in doing so stopping their bulk purchasing of American Treasury bonds, the result could be an even sharper fall in the dollar.”

"The dollar's recent weakness has reinforced the arguments in favour of monetry union"

The article thinks the main bone of contention between the different GCC states has been dramatic differences between each state’s oil and gas reserves. Resource rich states such as Saudi Arabia, Qatar and to a lesser extent the UAE, are better placed to invest in projects aimed at economic diversification and increased employment. Oman in particular has voiced concerns that the convergence criteria for monetary union are too restrictive, particularly in the area of public spending. The country’s central bank governor, Homud al-Zidjalihas publically declared, “we do not want to restrict our monetary and fiscal policies at present”.

The article quotes an analyst from investment bank Dresdner Kleinwort as thinking that the GCC are coming from a much tougher starting point than the European countries who banded together to form the euro.

The dollar-pegged Gulf currencies are already running the risk of inflation, and that’s before the widely expected cut in US interest rates. They may be forced to mimic this cut, although Saudi Arabia surprisingly chose not to go down this route when the US Federal Reserve cut rates by half a percentage-point earlier in the year.

Observing how the GCC countries react to the Fed’s actions will tell us a lot about their true intentions. Watch closely.

Executive Job Update, 29/10/07

2007-10-29T16:31:00.000+04:00

Macaulay Joins Credit Suisse

Duncan Macaulay has joined Credit Suisse as Head of Real Estate in the Middle East. Based in Dubai, he will report to Rob Brennan, Head of Global Real Estate Finance and Securitization and Bassam Yammine, Co-CEO and Head of Investment Banking in the Middle East.

Bassam Yammine, Co-CEO and Head of Investment Banking in the Middle East, added: “Duncan brings to the Bank strong relationships and will be an excellent addition to the team as we look to develop a leading real estate platform in the Middle East and deliver the full capabilities of the Bank to our clients in this key growth market.”

Mr. Macaulay joins Credit Suisse from Dubai Investment Group, where he was CEO of their Real Estate and Hospitality group for three years.

More info on expat life in the UAE

2007-10-27T17:43:00.000+04:00

Just found some more background information for anybody thinking about relocating out here. It's an article by a British expatriate banker who has been living in Duabi with his family since 2001, available at http://www.telegraph.co.uk/global/main.jhtml?xml=/global/mentors/dubai.xml

Banking in Dubai

2007-10-26T19:37:00.000+04:00

I've just come across this great photo of the Dubai International Financial Centre:(Source: http://www.flickr.com/photos/alex-photos/499925016/)

Since opening in September 2004, DIFC has attracted high calibre firms from around the globe. The 110-acre free zone is home to the Dubai International Financial Exchange (DIFX), which opened in September 2005.

It's a pretty good deal; companies operating in the DIFC enjoy 0% tax rate on profits, 100% foreign ownership, and no restrictions on foreign exchange or repatriation of capital. No wonder then that over 350 companies, including about 116 financial services firms, are based at the commercial hub.

Earlier this year Reuters reported that DIFC planned to make a series of significant acquisitions, worth more than $2 billion. Gulf Arab investors have spent around $94 billion on foreign mergers and acquisitions since 1997, about two-thirds of that in 2005 and 2006.

Large scale oil producing countries like Saudi Arabia, Kuwait and the UAE are currently experiencing near-record prices for their exports, which they are using to diversify their economies. The popularity of "Sovereign Wealth Funds" is also growing, with vast economic resources now controlled by small groups of petrodollar investors. In the past few years, inflation in the GCC has been low due to what economists call the “low absorptive” nature of the Arab monarchies. To put it simply, there is plenty of money to go around, due to high oil revenues and low population figures. This has created large current account surpluses, providing funds which governments have useed to invest in secure foreign assets.

Bankers in North America and Europe are getting increasingly twitchy about the concentration of so much wealth in the hands of so few investors, arguing that it makes the global economy vulnerable to the whims of foreign governments. Whether they like it or not, it's a phenomenon that's here to stay. Check out this article to find out more; http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/05/ccfunds105.xml

GCC single currency stalls...

2007-10-25T13:05:00.000+04:00

As far back as 2003, the Gulf Cooperation council (GCC) – composed of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE – started taking steps towards creating a unified currency. It is thought that such a move would aid economic integration and compliment moves already taken to ensure the free movement of goods, labour and capital across national boundaries. Collaboration en masse would also afford a degree of economic protection to individual countries. A date for monetary union was set for 2010, and all six countries pegged their currencies to the US dollar in order to help fulfil what economists call “convergence criteria”. The hope was that inflation, interest rates and current accounts could be brought into line, ensuring a smooth transition into the new currency.

That looks unlikely now, as the dollar has been under sustained downward pressure following the turmoil in the American credit markets this summer. Whilst many observers have drawn attention to the “decoupling” of developed and developing economies – the apparent resilience of emerging markets to financial dysfunction in America and Europe – others have noted more subtle manifestations of global economic integration. Events in Wall Street still have consequences for emerging markets such as the GCC, even if they have been slower to assert themselves.

UAE Central Bank Governor Sultan Nasser Al-Suweidi has recently stated that the GCC states are likely to miss the 2010 deadline for the single currency by more than five years. Oman has already pulled out of joining in 2010, arguing that it could not meet the budget deficit target due to the need for increased domestic spending on employment. Furthermore, Kuwait has depegged its currency from the weakening US dollar, arguing that it was suffering from unreasonable levels of inflation. On the other hand, Qatar Finance Minister Youssef Hussein Kamal defended the pegging policy in an interview with Gulf Times, arguing that a weak dollar means more competitive exports:

"Why should I change the peg when 100% of my exports and products are in the US dollar? […] My products look cheaper compared with the non-dollar-pegged products. Otherwise, I cannot sell them."

How will the rest of the GCC play it? Only time will tell, but at this point a single currency looks a long way off.

Don't look down!

2007-10-24T16:25:00.000+04:00

Today I managed to get hold of some great photos from last year’s Dubai Balloon Festival. The event was organised to launch the Dubai Shopping Festival, under the patronage of Shaikh Mayed Bin Mohammad Bin Rashid Al Maktoum. Apparently, he personally granted the organisers permission to stage flights in the restricted “no-fly” area directly over the city. The people in the streets below couldn’t believe their eyes!The festival was held during the last two weeks of the year, and 72 balloons from 18 countries attended. Every morning, a large group of weird and wonderfully shaped balloons (including a turtle and a peacock) took off from Global Village, and afternoon flights were also launched from the Burj Al Arab. Much of the flying took place over the desert, providing some awesome views:The crews and passengers were taken aback at the development which is going on here; the sudden transition from sand to city. Large swathes of the desert have been turned (temporarily) into building sites, where hotels, theme parks, housing developments and business “cities” are shooting up at extraordinary speed:Here's a photo of the “Palm”, which gives a good impression of its size:Some nights, the balloons would gather at the Dubai Creek to stage “night-glows”, tethered to the ground and flaring their burners in synch with music. There was a great response from local people, with many families going along to enjoy the spectacle.

Rumour has it that another festival is planned for early 2008. Hopefully I'll be able to got hold of some more information. In meantime, watch this space.

Rolling in it

2007-10-24T14:05:00.000+04:00

A salary survey conducted amongst 3,000 executives by search firm Napier Scott has found that managing directors at a top firm in Dubai can expect to earn 450,000 pounds ($891,000) a year. This is lower than the average in London, but so are the price/crime/precipitation levels out here!

Executive job round-up (22/10/07)

2007-10-22T12:57:00.000+04:00

Cooper to lead Moody’s in the Middle East
Moody’s Investors Service today announced that Mr Tristan Cooper, Vice President-Senior Analyst in the Sovereign Risk Unit, has relocated from London to Dubai, where he will lead Moody's business in the Middle East region. Mr Cooper commented, “the GCC’s capital markets are characterised by very strong growth trends across a wide spectrum of sectors, both in conventional and Islamic forms,” […] “The growth in analytical resources at the Dubai office reflects Moody's commitment to the GCC region.” Mr Cooper previously held various positions at the Institute of International Finance in Washington DC and the Economist Intelligence Unit in London. He holds a Masters Degree in Modern Middle Eastern Studies from Oxford University in the UK.

IMEX Holdings appointed Chief Operating Officer
International Mercantile Exchange Holdings LLC, the promoters of Qatar's proposed energy exchange - IMEX - today announced the appointment of Patrick Murphy as Chief Operating Officer. Murphy commented, “I am delighted to be appointed COO and contribute to the creation of an energy exchange in Qatar. To develop liquidity in these new markets, we will need detailed trading, settlement and fulfilment processes, which will require collaboration with national and international stakeholders. The potential benefits of such a market for the industry and Qatar are great.”

New senior strategist at Landmark
Landmark Properties, one of the United Arab Emirates leading property consultants, today appointed Mark A. DeSario as Senior Managing Director - Corporate Strategy and Business Development. Commenting on the great potential within the region, Mark DeSario said, “we are very optimistic about the investment and growth opportunities in Dubai and have a very favourable opinion on the opportunities in the broader UAE, GCC and Levant region […] A prime focus for Landmark Properties will be to […] improve the services we provide to our clients, including, a relocation program for companies and individuals moving to the region.”

Calling all prospective expats...

2007-10-21T18:41:00.000+04:00

I’ve just come across an interesting piece on the Telegraph’s website. It’s a refreshingly candid picture of Dubai presented by the director of a publishing company who has lived in the area for over 20 years. The article serves as a useful starting point for those considering relocating to Dubai, and is organised thematically:

Housing
The information provided on housing locations and costs is worth quoting verbatim:

"Those with generous company allowances tend to opt for the Jumeirah and Umm Suqeim area of Dubai, which is close to the beach, near excellent schools and has some lovely villas. However, you pay for the privilege with prices upwards of Dhs160,000 (GBP1 = Dhs7 at time of writing). Next is Barsha (Dhs120,000 plus) and Mirdif where a three bedroom villa can be found from around Dhs100,000 if you hunt around. Apartments range from a two-bedroom at Jebel Ali Gardens (Dhs36,000) – although demand here is so high the waiting list is closed – to a Sheikh Zayed Road apartment for Dhs100,000 plus. Prices are cheapest in Bur Dubai and Satwa (Dhs70,000 plus for a two bedroom)." After the property ownership laws were changed for foreign workers in 2004, it is now possible to buy a property in Dubai. Prices are rising but a two-bedroom apartment overlooking the beach can be had for about two million dirhams. A three-bedroom villa in the Springs is about the same price.

The article warns that property laws are in their infancy and buyers should do some serious homework before taking the financial plunge.

Healthcare
For those wondering about healthcare; a government health card is issued to all residents and enables free emergency treatment at all government hospitals. There are private hospitals too.

Education
There are numerous schools, from nursery right up to university. Many are based on the UK National Curriculum and some are regulated by OFSTED. Private school fees are around Dhs14,000 per term .

Food and Drink
There is also lots of information on eating and drinking in Dubai:

“Pubs, clubs, beach clubs, country clubs. You name it, Dubai has it. The lifestyle here is second to none and it is possible to enjoy it, even if you don't earn a fortune. Alcohol can be served only in licenced premises and the best pubs and clubs are located in the five-star hotels. Eating out is very reasonable and you can have a slap-up meal at a nice independent restaurant (outside hotels, minus the alcohol) for Dhs 70 per person (10 pounds) or at a five-star hotel with a bottle of wine for three times the price."

Sport
There is a thriving expatriate sports scene with plenty of rugby, hockey, football, cricket, tennis, sailing and golf clubs.

Check out the whole article at http://www.telegraph.co.uk/global/main.jhtml?xml=/global/mentors/dubai3.xml. It will give you a good handle on expatriate life in this part of the world.

CNBC and DIFC join forces

2007-10-20T16:32:00.000+04:00

CNBC has signed a multi-million dollar, three year agreement with the Dubai International Financial Centre (DIFC). The partnership comprises cross-platform activities including on-air, online and event driven elements across CNBC channels in the US, Europe, Asia, India and Australia.

DIFC will sponsor CNBC’s new monthly magazine news programme called Gateway to the Middle East with the strapline “Powered by the DIFC, your gateway to growth”. The programme will provide executives around the world with insights into the region, focussing on business trends and executive lifestyle. It will explore opportunities for making and spending money in the region and will feature interviews with the region's business leaders.

Dan McClean, CNBC’s Commercial Director EMEA commented, “The Middle East is a growing and important area for us, with more and more international trade emanating from the region. Research in Europe tells us that 13% of our viewers have investments in the Middle East. Wadi Ahmed, Chief Marketing Officer at DIFC said, “We aim to be a catalyst for regional economic growth and development contributing to Dubai’s position as a global gateway for capital and investment. CNBC provides the ideal platform for us to communicate this message, reaching senior business leaders on a global scale.”

Gateway to the Middle East first airs monthly on CNBC on 24 October, CNBC Europe (at 19.30 CET and 22.30 CET), CNBC World in the United States (at 17.30 EST), CNBC Asia (on at 20.00 SIN/22.30 SYD) and on CNBC-TV18 in India (on 27 October at 15.00 IND).

Online job-hunting in the middle east

2007-10-19T17:18:00.000+04:00

Albawaba.com reports that online recruitment in Saudi Arabia is starting to take off. Edward Musiak, head of a large internet-based recruitment outfit in the Kingdom, says that his clients "received in excess of two hundred thousand job applications for their Saudi vacancies resulting in hundreds of hires”.

We have a similar situation here in Dubai, where senior professionals wanting a change in lifestyle (and weather) are increasingly turning to the internet in order to find out more about life in the UAE, both in and out of the office. If this applies to you, then please feel free to contact me in my professional capacity at exec-appointments. Having done it myself, I can give you a good idea of what's in store!

Top tips for relocating to the Gulf

2007-10-18T14:49:00.000+04:00

Here's a useful article for anybody thinking about taking the plunge and relocating to the UAE:

http://www.shelteroffshore.com/index.php/living/more/expatriates_moving_to_live_in_dubai/

Put it down to experience

2007-10-18T13:15:00.000+04:00

Hooray!

Today The Khaleej Times Online published welcome news to managers throughout the UAE. It reports Humeid bin Demas, Ministry of Labour assistant undersecretary, as stating:

"Any senior staff in an administrative position, who has spent several years in the UAE, will be exempt from having to submit attested copies of their academic qualifications, while renewing their labour contract."

This extends to journalists, technicians, electricians, foreman. However,academic or technical degrees and certificates will still be required for certain professions such as doctors, engineers, accountants, pharmacists and lawyers etc.

Comforting to know.

Executive job update (16/10/07)

2007-10-16T12:53:00.000+04:00

A crowd of new faces at Dubai Holding
Dubai Holding, today announced the appointment of three non-executives to the Board of the Jumeirah Group. This completes the formation of the Board of Directors for the Group.

The non-executives who have joined the Jumeirah Group Board of Directors are: Sir David Michels, who was with the Hilton Group for many years where he most recently held the position of Group Chief Executive; Alan Parker, Chief Executive of Whitbread plc; and Michael Williams who was in charge of development for Mandarin Oriental before he was appointed Chief Executive Officer of the Renaissance Hotel Group.

The non-executive directors join Gerald Lawless, Chairman of the Board, and his Dubai Holding colleagues, Fadel Al Ali, Executive Chairman Dubai Holding Operations, Saeed Al Muntafiq, Executive Chairman of Tatweer and Farhan Faraidooni, Executive Chairman of Sama Dubai.

“With expansion plans to grow our portfolio of luxury hotels and resorts to 57 by 2011, the management board at Jumeirah Group has made yet another important, strategic step.”

Bank dips its toe into the Gulf with new office

2007-10-15T13:45:00.000+04:00

Reters reports that Standard Chartered bank is moving personnel to Dubai.

As governments in the region deregulate industries and companies go public, banks including Merrill Lynch and Deutsche Bank AG have opened offices in the Gulf. This summer Standard Chartered Bank joined the Middle East banking "club", announcing that it was moving 50 to 100 jobs from London to its new Dubai office. This came close at the heels of the bank's announcement that it was opening a regional hub office in Dubai.

"We are very positive about Dubai's potential, and we want to build on our presence there," spokesman Sean Farrell said. He added that the bank doesn't plan to fire anybody, and that it was offering employees special expatriate packages.

Standard Chartered, which conducts most of its business in Asia, plans to take advantage of the economic boom in the Persian Gulf. "Standard Chartered's very positive about Dubai's prospects to be a major financial center and we want to get in early and establish a strong presence," Farrell said. The bank's Dubai office is in the emirate's International Financial Centre, meaning the company will pay no tax on income or profit. Barclays Capital ans Goldman Sachs are among the finance companies that have offices in the DIFC. U.S. oil-services company Halliburton Co. in March also announced that it would move to a new corporate headquarters in Dubai from Houston, Texas.

To read the full article, visit http://www.bloomberg.com/apps/news?pid=20601102&refer=uk&sid=aGn2ei3vW6TA

Executive job update (15/10/07)

2007-10-14T12:52:00.000+04:00

Babcock & Brown expands in Middle East
International investment and advisory firm Babcock & Brown (ASX:BNB) today announced the appointment of Sunny Singh and Simon Kinzett.

Sunny and Simon will join the Middle East team, working from the Dubai office and will focus on the development of opportunities across the range of Babcock & Brown disciplines of real estate, infrastructure and project finance, operating leasing and corporate and structured finance.

Martin Rey, Head of EMEA at Babcock & Brown said, “Sunny and Simon bring considerable regional and sectoral experience to the business. […] “These new roles are part of our selective expansion of Babcock & Brown's geographic presence and the development of our business in the Middle East region.”

Going down the tube

2007-10-13T16:35:00.000+04:00

The main challenge facing Dubai in its much touted quest to cater for 15 million tourists per year by 2010 is not a lack of hotels, restaurants and attractions. It's traffic.

The huge volume of vehicles streaming in and out of the city on a daily basis have have made tailbacks a fact of life (still nowhere near as bad as London). Thankfully, all this is set to change with the construction of the Dubai Metro.

The train network is being built by Dubai Rapid Link (DURL) Consortium which comprises companies including Mitsubishi and the Turkish interest Yapi Merkezi. It will operate above and below ground and will be totally driverless. When completed, it will be the longest automated rail system in the world with a total of 70 kilometres (43.5 miles) of lines, and 42 stations (including 9 underground stations). The first sector will be completed in 2009 at a cost of AED 15.5 billion\ US$4.2 billion.

You can view a map at http://www.dubaimetro.info/en/map/.

The local wildlife!

2007-10-12T17:38:00.001+04:00

(Source: Neil O'Halloran)

Nurturing talent

2007-10-10T17:02:00.000+04:00

The global talent search firm Heidrick & Struggles reckons that "a strategic approach is required to ensure the Middle East develops, attracts and retains the best people to maintain progress". It predicts that Saudi Arabia will rank ninth in 2012 for the quality of its universities and business schools, and that the Kingdom's high disposable income is helping it to attract talent. Heidrick's managing partner Ayman Haddad, said:

"This study provides organisations with an accurate view of where talent is located, now and in five years' time, to help them make better decisions about their human capital requirements. It is not the size of the potential talent pool that matters but how it is nurtured. [...] With its young and rapidly growing workforce, this is an important lesson for the Middle East."

Heidrick Struggles has just set up a formal office in Dubai to help connect the most talented people with the leading organisations in the region.

What a great idea, wish I'd thought of that!

Executive job update (10/10/07)

2007-10-10T12:52:00.000+04:00

Jones Lang LaSalle grows into in the Middle East
Jones Lang LaSalle, the world's leading real estate investment and advisory firm, today announced the appointment of Graham Coutts as International Director and Head of Strategic Consulting for the Middle East and North Africa region.
Mr. Coutts joins the Jones Lang LaSalle MENA leadership team as the firm continues to accelerate its growth throughout the region. Commenting on the appointment, Alastair Hughes CEO for Jones Lang LaSalle EMEA said, “this appointment is further evidence of our strong belief in the MENA markets.” The firm has doubled in size since this time last year and has recently announced the opening of its new offices in Abu Dhabi.

Mr Coutts said, “Jones Lang LaSalle already holds a clear market leading position in the MENA region and I am looking forward to working with my new colleagues - both here in the region but also from around the world.”

Gulf job market – invasion of the british judges!

2007-10-09T15:30:00.000+04:00

A new report published by the influential McKinsey Quarterly sheds new light on the Gulf job market. It argues that the private sector in the GCC states will need to expand the number of medium-to high-wage jobs fivefold in order to soak up the 280,000 new national workers expected to graduate annually. The World Bank seems to agree, revealing that the labour force of the Middle East and North Africa has the fastest growth rate of all the “emerging markets”:

Source: http://lnweb18.worldbank.org/mna/mena.nsf/Attachments/K4D-Nabli-jobs/$File/nabli-jobs.pdf (Well worth a read too!)

Over the next 10 years, Qatar and the UAE will need over 1 million new workers in the fields of information technology, communications, hospitality, construction, finance and consulting services. Sharjah has seen a huge increase in retailing and wholesaling businesses, and Dubai has consolidated its leading role in banking by importing financial regulators to ensure that practices conform to standards set by London, New York and Singapore. The Gulf continues to attract high-quality multinational companies and expatriate professionals, with the FT reporting that retired British judges are carving out lucrative consulting roles! With 110,000 now living in Dubai, there are nearly as many Britons as there are local Emiratis. Jebel Ali now has several thousand resident trading and industrial firms, and is the major base for American corporations selling to the Saudi and Gulf markets. But the UAE is more than just a regional centre for light and heavy industry; its commercial free zones offer an increasingly liberal business sphere, allowing foreign ownership and favourable corporate tax conditions. The service industry has become easily the biggest sector of the economy and the largest provider of jobs.

Whilst this is all very interesting and encouraging, it seems to overlook an important element of the Gulf job picture. Multinational companies consider the wider Gulf as more than a hub allowing access to Europe, Africa and Asia; it is an important economic market in its own right. The arrival of world renowned corporate names has tended to obscure the equally significant growth in local businesses, owned and operated by nationals. An article published in the International Journal of Human Resource Management argues that the competitive business environment has engendered an enthusiasm among multinational and local companies to actively search for the best people, “experimenting with innovative management practices and development models”. Indeed, at the recent Dubai Strategy Forum, HR issues were identified as an important area of focus for the GCC countries. Saeed al Muntafiq, director of the Dubai Development and Investment Authority, believes that “Dubai’s focus now is to become a knowledge-based economy. We need to attract researchers and computer programmers.” Clearly, we’ve come a long way since the days of pearls and dates!

Executive job update (09/10/07)

2007-10-09T12:51:00.000+04:00

Citi Private Bank names new Executive Officer in the UAE
Citi Private Bank, a member of Citi, today announced the appointment of Mr. Mohammed Azab as Executive Director and Chief Officer for its UAE offices.
Mohammed's key focus will be to develop, grow and manage Citi Private Bank’s offices in the UAE as well as develop private banking relationships with high net worth individuals and families in the Middle East region. Through offices in Abu Dhabi, Dubai, Bahrain and Kuwait, Citi Private Bank acts as a trusted advisor to the region's high net worth clients with their wealth management and investment needs, locally and globally.” Citi has been in the Arab World for nearly 50 years and continues to view the region as critical to its global franchise. It is currently present in ten Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait.

Warning – extreme opinions contained within

2007-10-08T18:05:00.000+04:00

"Is this a new Margaret Atwood novel, Philip K. Dick’s unpublished sequel to Blade Runner or Donald Trump on acid? No. It is the Persian Gulf city-state of Dubai."

Writing in the New Left Review, Mike Davis has produced a fascinating and extremely opinionated account of the “new” Dubai (http://newleftreview.org/?view=2635#_edn37). The opening description brilliantly evokes the hyperreal landscape of the city from the air:

"The scene below is astonishing: a 24-square-mile archipelago of coral-coloured islands in the shape of an almost-finished puzzle of the world. […] The ‘Palms’ are connected by causeways to a Miami-like beachfront crammed with mega-hotels, apartment skyscrapers and yachting marinas. Out of a chrome forest of skyscrapers soars a new Tower of Babel. It is an impossible half-mile high: taller than the Empire State Building stacked on top of itself. […]Your jellyfish-shaped hotel, the Hydropolis, is, in fact, exactly 66 feet below the surface of the sea. You round off the afternoon with some snowboarding on the local indoor snow mountain. Outdoors, the temperature is 105°."

This photo seems to sum it up!
(Source: http://www.flickr.com/photos/byfon/404837044/)

Davis’ observations are too detailed and numerous to mention, but his insights are original and thought-provoking. He states that Dubai hopes to attract 15 million overseas visitors a year by 2010, three times as many as New York City. He describes Dubai as being so commercial that its Emir would in fact be more accurately termed a CEO! Since the high prices of the 1970s, savvy re-investment from oil revenues has been the order of the day.

Davis is at his most convincing presenting his arguments about Dubai’s economic development, contending that possessing less oil than other emirates such as Abu Dhabi has been a blessing in disguise. Why? Because it has encouraged its rulers to concentrate on other sources of wealth, cultivating the city a commercial and recreational hub. In his opinion, Dubai has “short-circuited” the commercial evolution experienced in Western Europe, the United States and parts of Asia in order to enjoy “the perfected synthesis of shopping, entertainment and architectural spectacle.”

Dubai will derive all of its GDP from non-oil activities like tourism and finance by 2010. Davis draws attention to the importance of brand in Dubai’s success: "If there was no Burj Dubai, no Palm, no World, would anyone be speaking of Dubai today? You shouldn’t look at projects as crazy stand-alones. It’s part of building the brand."

In many ways, Dubai represents the ultimate capitalist fantasy: “an oasis of free enterprise without income taxes or trade unions”. In an appearnance on ABC News, Hari Sreenivasan said that “one of the ways that this trading town along a creek has reformulated itself into a megalopolis’, writes an abc News commentator, ‘is by throwing in everything and the kitchen sink as incentives for companies to invest in and relocate to Dubai. There are free-trade zones where 100 per cent foreign ownership is allowed, with no individual or corporate taxes or import/export duties whatsoever.’ The original free-trade zone in the port district of Jebel Ali now has several thousand resident trading and industrial firms, and is the major base for American corporations selling to the Saudi and Gulf markets.

Unfortunately he overcooks his analysis at the end, stepping into the realms of intellectual indignation by calling Dubai’s affinity for pastiche and architectural parody “a nightmare of the past”.

Don’t believe everything he says. Some people are too clever for their own good.

History Class - no talking at the back!

2007-10-07T18:11:00.000+04:00

My previous post got me thinking about colonialism, so I went to my bookshelf and had a quick flick through William Cleveland's excellent History of the Modern Middle East. It's a comprehensive and textbook-esque account which is thin on detail but good for reference purposes.

The stuff on Egypt is particularly strong; 25 years condensed down into 5 pages! British intervention in Egypt is identified as “one of the most significant colonial encounters of the modern era”, one which had a profound effect upon Egyptian economic development and political formation. The British had occupied Egypt to restore order after forces hostile to European influence had assumed political control, but the invasion was perhaps equally a response to French imperial ambitions in the region.

What began as a short-term invasion gradually morphed into an occupation. Since Egypt remained an Ottoman province, the original structure of government had to be preserved; native personnel answered to British advisors under the direction of Lord Cromer. Cleveland ends this passage by arguing that the infamous Dinshaway Incident did more than discredit the British occupation and arouse widespread anger.

Cleveland’s account serves as a gateway into the central issues surrounding the British occupation of Egypt, a good base from which to explore the complexities of the period.

Then and now

2007-10-06T15:23:00.000+04:00

Dubai has come a long way in a short space of time. The futuristic cityscapes springing up all over the UAE are a far cry from the small ports and desert oasis towns of yesteryear. . Up until 1956, when the first concrete building was constructed, the population lived in ‘barastri’ homes made from palm fronds. There is a wealth of literature dealing with the history of the so-called “Trucial States”, but it’s worth checking out James Onley and Sulayman Khalaf’s article “Shaikhly Authority in the Pre-oil Gulf” for an account of traditional life in the UAE.

In the age of mobile phones, broadband, 6 star hotels and theme parks, it’s easy to forget that for centuries, the primary industry of the area was pearling.

Pearling fleets were composed of Dhows such as this one.

Just as the ruler relied upon his merchants economically, he depended upon complex tribal allegiances to guarantee the territorial integrity of the shaikhdom. Not much has changed really; the pearlers have been replaced by bankers, hoteliers and construction magnates, but tribal politics still plays an important role.

Perhaps controversially, Onley and Khalaf portray the British presence in the pre-oil Gulf as far more constructive than exploitative; “the Pax Britannica benefited the Gulf shaikhdoms as much as it did the British”. This was of course out of sync with popular opinion in other areas of the Middle East (think Egypt, Sudan, Iraq), which was vehemently against British colonial rule. It shows how through effective diplomacy, antagonistic political and cultural interests can create mutually beneficial international relations. Well worth a read.

Reading List

2007-10-05T14:49:00.000+04:00

Over the next few days I will be reviewing interesting articles related to the Gulf. If you're interested in the history / culture / economy of the Middle East, make sure you check them out.

Impressive growth in cosmetics

2007-10-03T15:29:00.000+04:00

An article recently published at Tdctrade.com reports that the Middle East cosmetics sector has grown 12% annually over the past 3 years, with an estimated sales value of US$2.1 billion in 2007. Last year, the cosmetics and personal care market in the UAE alone was worth more than US$414 million in retail sales, an increase from US$382 million in 2005, according to a recent consumer survey.

In fact, the consumption of cosmetics and perfumes in the region ranks among the highest per capita world wide, with an average purchase per head of around US$334 annually.

Brands such as Christian Dior and Coty are active in Middle East markets, and a number of manufacturers have established subsidiaries in the region. Middle East luxury retailer Paris Gallery is planning to open 40 new retail outlets in the UAE, Qatar and Saudi Arabia - additional to those in Bahrain, Kuwait, the Lebanon and Oman - to meet the new demand for such products.

The full article is available at http://www.tdctrade.com/imn/07072404/cosmetics043.htm

Executive job update (02/10/07)

2007-10-02T12:09:00.000+04:00

Principal Search opens new office opening in Dubai

Financial services headhunting firm Principal Search today announced the strengthening of its presence in the Gulf region with the opening of an office in Dubai. In the last two years Principal Search has placed senior investment bankers and teams in Dubai, Bahrain, Kuwait, Saudi Arabia, Qatar and Turkey as well as filling numerous senior management positions throughout the MENA region including the Chief Executive of the International Mercantile Exchange in Qatar.

The new Dubai office will be led by Adam El-Balawi, who has significant local experience recruiting senior level executives in the MENA region. Having spent many years in the area he has a clear understanding of the business culture, the competitive landscape and the Gulf's evolving position in global financial markets. Taru Oksman-Ison, global head of Emerging Markets, outlined the firm's strategic growth plans and commented, “We already have a significant track record in the Gulf as a leading provider of high level search in all asset classes including M&A, equity and debt capital markets, fixed income and the fast growing Islamic finance market, and the new office will act as central hub for our activities across the region.”

Mark Swan, who heads the firm's MENA business from Istanbul added: 'The strategic decision to open in Dubai, and to strengthen our presence across the Gulf, is driven entirely by client demand as the leading banks, financial institutions and major corporates extend their infrastructure across the region.”

Executive Job Update, 24/09/07

2007-09-24T16:09:00.000+04:00

Eversheds consolidates in Qatar

Eversheds is strengthening its Middle East operations, parachuting a key London Islamic finance partner into its Qatar office. Amjad Hussain is moving to the office as part of the firm’s wider strategy to strengthen its Islamic finance services by focussing on project and energy work. Eversheds also has offices in Dubai.

Head of Eversheds' Islamic finance group Indraj Mangat said: "The aim is to create a group that spans the core Islamic finance centres, including Malaysia, London and the Middle East. Amjad"s move to Qatar is pivotal to this strategy." The launch of the Qatar Financial Centre (QFC) has encouraged more than 50 international businesses to put down roots in the area. Mangat added, “Developing Islamic finance capabilities in the QFC is important to Eversheds. It's going to become even more important in the coming years, so ensuring our team is up to scratch and has enough of the right people is vital. As well as Dubai, Qatar is very significant in that banks and other businesses have turned their attention to it."

Ramadan Kareem

2007-09-20T22:59:00.000+04:00

During the month of Ramadan, exec-appointments.com is donating 1¢ per unique click to Unicef's Children First campaign. Please join us in supporting this worthy cause by clicking on the Unicef button on our Middle East page. THIS CAMPAIGN IS NOW CLOSED.

Update 15 October 2007: Following our recent charitable campaign for the Unicef ‘Children First’ appeal, we are pleased to announce that we had an incredible 140,000 views of the ad which resulted in a significant number of click-throughs boosting our donation to Unicef.

Everyone at exec-appointments would like to express a huge thank you to everyone who participated, which has allowed us to donate a contribution to this very worthy cause, fronted by HRH Queen Rania of Jordan.

We hope that everyone had a great Eid holiday and we look forward to working with you over the next year and beyond.

Ramadan Kareem

2007-09-12T11:50:00.000+04:00

The holy month of Ramadan is marked annually by Muslims around the world as a time for prayer, fasting and charity, as well as spending special time with family and friends.

As this month dawns upon us, Exec-Appointments would like to wish everyone Ramadan Kareem and say a big thank you for the great level of support shown during the past year.

New office location for world's leading executive jobsite

2007-09-04T19:49:00.000+04:00

We are moving in October to new offices in the Dubai Airport Free Zone. The office provides room for our expanding team, with two new members of staff expected to join in October.

Gamal Abdulla, Managing Director for the Middle East, said "Last year we noticed a wide range of European companies wanting to advertise for executives to help them with their Middle East operations. We decided in 2006 that being on the ground in Dubai would accelerate our growth in the region. Dubai is a fantastic hub not only for the Middle East but the rest of Asia and the Far East. The response we have had so far has been phenomenal and our product has been well received by both corporate clients and search companies alike. The goodwill and support we have received has been outstanding."
Sheikh Ahmed Bin Saeed Al Maktoum said “Dubai Airport Free Zone was officially established by the Government of Dubai, pursuant to Law No.2, 1996. Establishing the Free Zone within the boundary of Dubai International Airport was in line with the greater strategy of our Government, to develop Dubai as an international successful center for business, trade and investment. We are proud to offer our investors the most attractive incentive package that would assist them in expanding and growing in a city known not only as a melting pot of world civilizations but also as a getaway to a market exceeding half of the world’s population. Moreover, as a city used to playing host to various world-class international business and commercial events, investors will enjoy the additional benefits of having their business located in one of the busiest airports in the world.”

Farewell London, Hello Dubai, By Gamal Abdulla (In my view)

2007-05-20T15:22:00.000+04:00

THE LAND OF opportunity, the gold at the end of the rainbow, continuous sunshine, crime-free environment, tax-free living; a few examples of the constant images we see on TV and in magazines and newspapers used to describe Dubai to lure us to this new world. But is it really all it’s cracked up to be?

Having spent the past five years of my life in one of the most famous cities in the world, London, I felt that it was time for a change. Fed up and miserable with daily life in the rat race, I was ready to take the plunge into this ‘new world’ promoted all around me. Tasked with the role of opening up a Middle East operation for the global executive jobsite, exec-appointments.com, I made the move that most people only daydream about during their hour-long tube or train commute to work.

To read the full article click here=

exec-appointments.com opens new office in Dubai

2007-05-20T15:19:00.000+04:00

London is the world’s largest financial centre. When will Dubai be #2? What are you doing about it? by Betty Thayer*

London is the world’s largest financial centre. When will Dubai be #2? What are you doing about it?When 75,000 British expatriates are huddled together in less than 50 square miles it does not take long to guess that something big is happening. You may have only been to Dubai or other places in the Gulf for a beach holiday. Clean, safe, affordable. And tax free. One Resourcing Manager I know in a large bank went from a two-up two-down in Canary Wharf to a five bedroom villa with live-in staff. No wonder that top talent now has the Gulf, and particularly the UAE, on its radar screen.And so does exec-appointments.com.

To read the full article click here

exec-appointments.com opens in Dubai

2007-05-20T15:15:00.000+04:00

exec-appointments.com, the leading website for executive jobs, has expanded its operation to the Middle East with a new office in Dubai.

Strategically positioned in the Dubai Airport Free Zone, the new office will provide a much-needed presence on the ground for clients throughout the region. Gamal Abdulla, Middle East managing director, said: 'Dubai is booming at the moment. There's a lot of enthusiasm and energy here. The economy is moving fast and businesses want to succeed. It's a very young and vibrant place and ideal as a hub between Europe and Asia. 'With so much expansion going on, companies need quality candidates for a range of senior roles in financial services, construction, education and telecomms. exec-appointments.com will be the only jobsite based in the Middle East specifically tailored to the senior end of the market.'

exec-appointments.com opens in Dubai

2007-05-03T18:44:00.000+04:00

DUBAI -- exec-appointments.com, the website for executive jobs, has expanded its operation to the Middle East with a new office in Dubai. Strategically positioned in the Dubai Airport Free Zone, the new office will provide a much-needed presence on the ground for clients throughout the region.

Gamal Abdulla, Middle East managing director, said: "Dubai is booming at the moment. There's a lot of enthusiasm and energy here. The economy is moving fast and businesses want to succeed. It's a very young and vibrant place and ideal as a hub between Europe and Asia. "With so much expansion going on, companies need quality candidates for a range of senior roles in financial services, construction, education and telecomms. exec-appointments.com will be the only jobsite based in the Middle East specifically tailored to the senior end of the market."

Contact Gamal Abdulla +971(0)4 214 9535 http://www.exec-appointments.com/