venture scene in high-growth markets. The last two years have seen a real surge in tie-ups across all sectors – an important story, as tight credit forces companies to look for new ways of entering emerging markets.
Our feature on page 34
looks at the risks involved in doing business in countries in transition, especially Egypt. The Bahna brothers, of Cairo-based Bahna Engineering, tell us how they defended their business interests during last year’s Arab Spring.
ITALY
GERMANY
Global briefs 4 Indian slums, retailers in Russia, Brazilian beans 6 Global view Renewable energy 8 Cabling the BRICS, automating the outback, African cities
12 Buying up brainpower The outsourcing of research and development 16 Microsoft’s Asian outpost 19 R&D trends Battelle’s latest forecast
2 © 2012 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
FRANCE
CHINA
RUSSIA
Growth focus
Alan Buckle Global Deputy Chairman KPMG International
INDIA
Also in this issue we visit the dynamic joint-
WTO: Russia joins the global trade network p.20
TURKEY
which linked the BRIC nations and others has become less of a common currency, other factors remain that unite them. The rise of middle classes and the spread of wealth, for instance. One startling piece of evidence might be China’s rapidly increasing influence in the rarefied world of art collecting. China’s share of the €46 billion global market for art now stands at about 23 percent. In our cover story on page 42, we look at art investment in high-growth markets, including a profile of Dubai’s go-to guy for contemporary collectors, Ramin Salsali.
CANADA
But while the furious growth
JAPAN
and the debt crisis in the eurozone are taking their toll on emerging markets. Standard & Poor’s warned in June that India may be the first BRIC nation to lose investment grade status, as industrial output dwindles and growth slows. Faltering growth in India, China, and the United States has also pushed down the prices for commodities – bad news for Brazil, for instance, which depends on them. So after weathering the storm of the 2008 crisis, many emerging markets are facing uncertain futures.
Bridging the gap to emerging markets p.24
USA
A sluggish global recovery
Photos: Cover: Isidora Bojovic pp 2-3: KPMG, Frederic J. Brown/AFP/Getty Images, Isidora Bojovic, Nasser Nasser/AP Photo/ddp images, Sinopix/laif Illustration: KircherBurkhardt Infografik
Questions arise as growth slows