SPECIAL REPORT: THE LUXURY INDUSTRY REBOUNDS Vol. 15 Issue 8 December 2010
Abdul Aziz Al Ghurair
Sameer Al Ansari
Abdulla Al Awar
CEO PREDICTIONS The region’s leading business
minds share their hopes, fears and strategies Bahrain..............BD 1.0 Kuwait............... KD 1.0 Oman................ RO 1.0 Qatar.................. QR 10 Saudi Arabia.......SR 10 UAE.................. DHS 10
oyster perpetual day-date ii in 18 ct white gold
41 the day-date collection is also available in 36 mm and 39 mm.
Glashütte Original � 165 years of watchmaking art. PanoInverse XL
Glashütte Original. Founder of the German Watch Museum Glashütte.
The PanoInverse XL. A revelation. Given pride of place by design, the extraordinary duplex swan-neck fine adjustment and hand engraved black balance bridge
Bahrain: ASIA JEWELLERS, +973 17 534 444 · Jordan: TIME CENTER, +9626 552 5706 · Kuwait: MORAD Qatar: RIVOLI, +9744 833 679 · Saudi Arabia: ALFARDAN JEWELLERY, +9661 462 8972 · Syria: WATCH
reveal the beauty of the Caliber 66 manual winding movement at the heart of this exceptional timepiece. Find out more at www.glashuette-original.com.
YOUSUF BEHBEHANI, +965 2467 626, Lebanon: ATAMIAN, +9611 256 655 路 Oman: MISTAL, +968 24771444 TOWN, +963 11 3736 115, Turkey: LPI, +90 212 296 7960 路 United Arab Emirates: RIVOLI, +9714 800 rivoli
April 1819. François Constantin takes responsibility for the worldwide business expansion of Vacheron Constantin. During a business trip to Italy, this visionary man coined the phrase which would become the company motto in a letter addressed to the manufacture: « …do better if possible, and that is always possible …».
True to this motto and to the spirit that forged its history, Vacheron Constantin still remains committed to pushing the boundaries of watchmaking in order to provide its clients with the highest standards of technology, aesthetics and nish.
Patrimony Contemporaine Retrograde Day and Date Hallmark of Geneva, Pink gold case, Self-winding mechanical movement Ref. 86020 / 000R-9239
Mall of the Emirates, 1st Floor, Sheikh Zayed Road, Dubai Tel: 04 2221222
CONTENTS Vol. 15
GCC NOW 12 The round-up News, numbers and people from around the region.
COMMENT 22 Mishal Kanoo Greed delays the long road to recovery.
24 Matein Khalid How to gain from currency wars.
26 Tommy Weir A tribute to Vodafone’s Grahame Maher.
28 Chris Bruin Why credit bureaus are a must
ANALYSIS 32 Gold rush COMMODITIES Gold prices edges up after QE2 in the US.
34 Liquid assets RETAIL Region’s energy drink consumption shows growth.
36 Travel tactics TOURISM The Gulf courts Asians to offset decline in traditional markets.
38 Takaful review INSURANCE Analysts debate the credibility of Islamic insurance.
Issue 8 December 2010
The top 100 companies in the GCC
As the economy recovers from the worst recession since 1930s, a collection of the region’s leading CEOs share their hopes, fears and strategies for 2011 with Gulf Business.
42 Back on track REAL ESTATE Dubai Pearl says it can deliver despite gloomy outlook.
FEATURES 66 Green report ENVIRONMENT Profits and protecting the earth go hand in hand.
77 Turning tides LOGISTICS The regional shipping industry says stormy waters are over.
40 New frontiers
83 Aerial ambitions
MARKETS UAE’s emerging market status could open investment gates.
SPACE Dubai’s first satellite has spurred a raft of space initiatives.
LUXURY SPECIAL 88 Prestige profits RETAIL Analysis of the region’s high-end shopping sector.
92 Everlasting beauty PROFILE An interview with Clarins Middle East.
94 Designs on Lebanon RETAIL Louis Vuitton plans to extend Mid-East footprint.
96 Stepping up profits RETAIL Italy exports 10 per cent of high-end shoes to the UAE.
December 2010 gulfbusiness
Editor-in-Chief Obaid Humaid Al Tayer Group Editor and Managing Partner Ian Fairservice Group Senior Editor Gina Johnson Group Editor Catherine Belbin
Editor Alicia Buller firstname.lastname@example.org Business editor Karen Remo-Listana email@example.com Chief Sub-editor Iain Smith firstname.lastname@example.org Editorial coordinator - business Concessa Dâ€™Souza email@example.com Art Director Cris Domdom firstname.lastname@example.org Senior Designer B Raveendran email@example.com Contributors Ryan Harrison; Martin Morris; Adrian Morley; Robert Bailey. General Manager Production and Circulation S Sasidharan Production Manager C Sudhakar
110 100 Business essentials GIFTS High-end shopping ideas for Christmas.
General Manager â€“ Abu Dhabi Joe Marritt firstname.lastname@example.org
108 Travel Explore the Orient Express train journey from Istanbul to Venice.
110 Cars Glenn Freeman tests the new highperformance sedan from Lexus.
30 Letters 43 Executive moves 107 Hotels 115 Data monitor
111 Art Intrigue and scandal governed the last Islamic art season.
122 In your shoes
Win a two-night stay at Yas Hotel Abu Dhabi.
Alicia Buller goes racing with Gordon Ramsay.
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Printed by Emirates Printing Press, Dubai
IN THE NEWS PRINCE MUHAMMAD BIN NAYEF
Saudi interior minister Prince Muhammad helped thwart a recent bomb plot.
for Homeland Security and counter-terrorism, and former CIA station chief in Riyadh, to warn him of the 2010 cargo plane bomb plot. His communication with US and British investigators over the information led authorities to seize two parcel bombs at airports in the Midlands and Dubai. Qatar Airways
Saudi Arabia may be the birthplace of Osama bin Laden and 15 of the 19 hijackers in the terrorist attacks of September 11, 2001 but from this kingdom also hails Prince Muhammad bin Nayef who has helped foil a handful of terrorist attempts. Prince Muhammad, son of minister of interior Nayef bin Abdul Aziz, is the Saudi interior minister in charge of counter-terrorism and the man behind the thwarting of a recent bomb plot which could have brought down two planes. Born in Jeddah in August 30, 1959, he moved to the United States to study for his bachelor degree, with political science as a major. On October 28, 2010, he called US Homeland Security official John Brennan, the US administration’s deputy national security advisor
has confirmed that the intercepted explosive device was carried by two of its planes via Doha. The hidden bomb, a printer cartridge packed with the explosive PETN attached to a concealed mobile SIM card, was posted via freight firm FedEx, and the second device – which was posted via UPS in Yemen
– was also found at East Midlands Airport in the UK. The two explosive devices were addressed to destinations in Chicago in the US. Prince Muhammad and his team impressed the Western intelligence agencies. He appears to be building a network of informers across Yemen, and some terrorism analysts say the tip may well have come from one of his spies, possibly even from inside Al Qaeda, the New York Times reported. The Saudis have stepped up their intelligencegathering efforts in Yemen since last year, when Al Qaeda in the Arabian Peninsula came close to assassinating Prince Muhammad. On August 27, 2009, a suicide bomber posing as a reformed jihadist detonated a bomb hidden inside his body, but only lightly injured the prince.
SOAPBOX We have good relations with America, in terms of military ties, education, health, but politically, no.
I have no fear whatsoever. I strongly believe that the orderbook today is over exaggerated.
Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani gets candid in an interview with the FT, saying they the small state is against military attacks on Iran.
Why ask people to remove flat shoes? What can you conceal in a flat shoe?
Akbar Al Baker,
CEO of Gulf Navigation Holding shrugs off projection that the shipping sector is set to face a supply glut.
Qatar Airways‘ CEO criticises the US policy on aviation security and its ”excessive” screening checks at the airports.
GCC AND THE WORLD DP World has become the first international marine terminal operator to join the Carbon Disclosure Project (CDP), a disclosure and reporting framework used by 3,000 of the world’s largest companies to report
12 gulfbusiness December 2010
their greenhouse gas (GHG) emissions and climate change strategies. The Dubai-based global port operator reduced the absolute carbon emissions of its terminals and businesses by 4.24 per cent
per cent DP World’s target green house gas reduction.
and 3.52 per cent when normalised against TEU throughput against a 2008 base year. DP World has set a goal to reduce GHG emissions at its terminals by 27 per cent by 2013 under its five-year plan.
UNITED ARAB EMIRATES
UAE shifts to recovery mode
The UAE private sector business activity hit a 15-month high in October.
The UAE has entered recovery mode with two prominent surveys indicating a growth in business activity and recruitment prospects. According to the HSBC UAE Purchasing Managers’ Index (PMI), private sector business activity hit a 15-month high in October. The index, which measures
the performance of GCC countries’ manufacturing and services sectors, rose to 53.8 points in October for the UAE, its highest level since the series began, holding above the 50 point mark that separates growth from contraction. It stood at 52.6 in September. Results from the bi-annual Regus Business
Tracker survey show that UAE firms are planning to hire new staff. The study, which interviews over 10,000 businesses around the world, says 36 per cent of the respondents said they intend to increase headcount. Business in the UAE slightly underperformed the global average with 34 per cent.
UAE supports new ruler of RAK Sheikh Saud bin Saqr Al Qassimi was confirmed the ruler of Ras Al Khaimah after his father, Sheikh Saqr, succumbed to a long illness. RAK has been under the leadership of Sheikh Saud since his older half brother, Sheikh Khalid, was deposed as crown prince in 2003 by decree. Sheikh Khalid has campaigned for
several years to regain the leadership, but most analysts believe it is unlikely he will win power. He managed to return to RAK with an armed entourage on the night his father died, but was quickly isolated by federal forces. The UAE supreme council gave its full support to Sheikh Saud.
Dhs122 bn Dhs10 bn The UAE federal budget for the 20112013 period, of which Dhs 41 billion is earmarked for 2011.