2 0 1 0

G L O B A L I S S U E S I N P E R S P E C T I V E

q1 01
02
timewriter. In 1821 Nicolas Rieussec invented the first chronograph, a revolutionary device with two rotating discs beneath
an index with an ink-filled tip that left a mark on the dials to indicate the time. Taking the essence of his invention, Montblanc
has created a time-keeping masterpiece incorporating the rotating disc technique: the Montblanc Nicolas Rieussec.
Monopusher chronograph, self-winding manufacture movement. 13 3/4 lines, large screw-balance of 9.7 mm, 4 Hz.
Off-centre hour, minute and date display. Second time-zone with day-night display. 30 min. and 60 sec. counters with rotating discs fixed
on the counter bridge. Column wheel control, vertical disc clutch running virtually friction-free. Special toothing for more efficient power
transmission. 72-hour power reserve display, sapphire glass back. 43 mm stainless steel case, alligator-skin strap. Crafted in the Montblanc
Manufacture in Le Locle, Switzerland.

Montblanc Boutiques
Jeddah: Red Sea Mall, Jeddah, 02 657 3939; Corniche Street, Al Hamra, 02 651 1135
| Al Khobar: Rashid Mall, 02 657 3939
www.montblanc.com 03
04
05
 issue 1 3 2 0 1 0

G L O B A L issues in P E R S P E C T I V E

24 Competitive Forces 38 Warming up to the 50 medical intervention

Competition drives productivity and commerce, Cashmere Challenge Is the franchising of top hospital brands, similar to the
causing each company and country to operate at its Behind this luxury fibre is an industry combating shortages, franchising of coffee, the new wave for expanding quality
optimum level. high demand, fraud and environmental destruction. healthcare internationally?

30 Cloud+Clear 42 beautiful investments 54 deadly threat

Evolving and ubiquitous, high technology is bringing The growing vanity business is helping both men and The cost of diabetes in real terms as well as human
the world together in an age of compeitiveness, while women maintain a youthful outlook by means of creams, suffering is escalating as this complex disease spreads around
encouraging collaboration. treatments and procedures. the globe.

34 The Bilbao Effect 46 food, feed or fuel 58 sporting chance

Can another architectural masterpiece repeat the Versitile corn plays a multitude of roles in today’s Athletics can make Olympic champions of
economic effect Gehry’s Guggenheim design had on Bilbao, economy, posing the question, “What is the best use of competitors of all levels, regardless of mental abilities
Spain? resources and production?” or location.

06
 “Whenever you
face a man who’s
playing your
instrument,
there’s a
competition.”
Wynton Marsalis

64 tactical sailing
In an age of fluctuating economies, the business of
78 looking forward
from behind the lens
regulars
high-powered, high dollar super yachts stays afloat by Internationally acclaimed and award-winning photographer 13 spectrum
going green. Faisal Almalki captures images with a new perspective. International achievements present a new perspective on the
world of business and commerce.
68 The lap of luxury 19 art on the edge
When travelling in the Middle East for business or The international art scene reports decreasing prices
pleasure, a plethora of new and soon-to-open hotels offer for masterpieces and increasing interest in Arabic artists.
the ultimate in hospitality. 83 books for thought
The A-List of Business books
74 style 84 thinking ahead
Discover new products that give you and your office Golf Futures
that all-important competitive edge with a powerful, 86 visionary
professional look. Michael Dell

07
COVER PHOTOGRAPHY
Faisal Almalki

Editor-in-Chief Obaid Humaid Al Tayer

Group Editor + Managing Partner Ian Fairservice
Group Senior Editor Gina Johnson
General Manager – Special Projects Jonathan Griffiths

Senior Editor Catherine Belbin catherine@motivate.ae

Features Editor Dorothy Waldman dorothy@motivate.ae
chief sub editor Iain Smith iain@motivate.ae
Editorial Assistant Belinda Igaya belinda@motivate.ae

Group Publisher – Business Neil Presland neil@motivate.ae

Regional sales manager Benjamin Jones benjamin@motivate.ae
General Manager – Production + Circulation S Sasidharan sasidharan@motivate.ae
Production manager Sunil Kumar sunil@motivate.ae
subscriptions Prescilla Monteath prescilla@motivate.ae

design Design Studio

International Correspondents Steve Hill, Joanne Molina, Ruby Rogers, Lisa Vincenti, Richard Warren

editorial advisor – sagia Fahd M Hamidaddin

EDITORIAL LIAISON – sagia Aseel A Al-Zamil

motivate publishing
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Motivate Publishing LLC, on behalf of Saudi Arabia General Investment Authority, publishes THINK quarterly. SAGIA and Motivate Publishing do not accept liability for
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09
010
 q1
2010
Sakrin Mosque, Istanbul,
Turkey; opened 2009

THINK In A New Direction

THINK’s new editorial focus has been expanded to inspire you to reTHINK
and re-examine your opinions on today’s vital issues.

In this issue, THINK contemplates sustainable competitiveness to rebuild

the world’s economic arena, presenting global issues at a time when
innovative thinking is essential for success.

Regardless of who you are, where you are, or what you are, in order to
be competitive today you must redesign your priorities and THINK about
new markets and how to view world opportunities, such as those offered in
the new Saudi Arabia, from a strategic vantage point.

Most of all, we would like you to think with us, and as a global THINKer
we look forward to hearing your thoughts.

Catherine Belbin, Senior Editor THINK@motivate.ae

011
<INBUSINESS>
Bloomberg

with Margaret Brennan

WEEKDAYS
10:00 ET | 18:00 AST

Bloomberg
TELEVISION

017
 GLOBAL
economics
written by steve hill

New investments, travel

accolades, rising rankings and
sky-high building plans indicate
blossoming economic recovery
in an expanding variety of
international sectors.

013
spectrum

Travel Awards
Centre of
attention
More than 70 million people are expected
to visit the Shanghai World Expo, which
takes place from May 1 to October 31.
The event, which has the theme Better
City, Better Life, is set to be the biggest in
World Trade Fair History with around 200
countries and 45 international organisations
taking part. The 5.28 square kilometre site Virgin Atlantic has been voted Best
spans both sides of the Huangpu River and International Airline in the seventh annual
is 20 times larger than the venue for the Travel Weekly Readers’ Choice Awards,
2008 Expo in Zaragoza, Spain. which recently took place in New York.
The Shanghai Expo will also The Business/First Class award went to
showcase the work of many leading Singapore Airlines while St Regis, on Bora
architectural companies, including the Bora in French Polynesia, lifted the Best
Bjarke Ingels Group, whose design for Worldwide Resort prize.
the Danish pavilion features a series of Rome and Italy were voted the best
Copenhagen experiences. Foster and European city and country destination,
Partners’ design for the United Arab with Sydney and Australia taking the
Emirates pavilion, meanwhile, has been plaudits for the Asia/Pacific region.
inspired by the form of a sand dune.

ready for
take off
Saudi Arabian Airlines (Saudia) is set to
Simply capital Common goals
Members of the Gulf Cooperation
Council (GCC) states have moved
Tall story
Burj Khalifa officially entered the
record books on January 4, 2010
modernise its fleet by buying 58 aircraft Germany’s Ruhr River Valley host some 2,500 events this year. a step closer to establishing a as the world’s tallest building at
boasting the most advanced facilities, has undergone such a dramatic Istanbul, Turkey’s largest city, is common currency as well as 828 metres and 160 storeys tall,
including A320s, A321s and A330s, from transformation that it has been also a capital of culture for the year. reaching agreement on a huge but it may not be long before
Airbus. A SR10 billion (US$2.6bn) contract named a European Capital of In celebration, the Ataturk Culture railway network and common Emaar’s “vertical city” is dwarfed
has been signed with the French company Culture for 2010. Centre has been refurbished, power grid network. by an even taller structure. The
to help Saudia meet global challenges. The former industrial heartland, while the Maslak Cultural Centre Four of the members – Bahrain, architectural firm of Skidmore,
which covers a region of five million is opening as a new venue for Kuwait, Qatar and Saudi Arabia – Owings & Merril (SOM),
Most competitive people and 53 cities and towns, is to performing arts. have ratified a pact that will next year who designed the
financial centres establish a GCC monetary council, sky-piercing Dubai
1. Singapore which is seen as paving the way for a tower, is already at
2. London (UK) Riyadh-based central bank. work on a proposal
3. New York (US) The GCC, which also includes for another Emaar
4. Hong Kong Oman and the United Arab project, the 1,000+
5. Zurich (Switzerland) Emirates, has given the green light to metre Kingdom
6. Tokyo (Japan) establishing a railway authority that Tower, which is
7. Dubai Intl. Financial Centre (UAE) will construct around 2,000km of destined to become
8. Frankfurt (Germany) track costing up to US$25 billion. the focal point of
9. Luxembourg And the electricity networks of the ambitious
10. Dubai (UAE) Saudi Arabia, Kuwait, Qatar and Kingdom City
11. Paris (France) Bahrain are to be linked under development in
12. Dublin (Ireland) the first phase of a GCC power Jeddah.
13. Doha (Qatar) grid project. Oman and the
14. Manama (Bahrain) UAE are set to take part in
15. Riyadh (Saudi Arabia) the second phase of
Source: DIFC the scheme.

014
South Africa
ready for kick off
South Africa is not
expected to be a serious
challenger to lift the
2010 FIFA World Cup,
which will be held in the
Rainbow Nation from
June 11-July 11, but the good as gold
first African nation to Gold futures are being tipped to
host the biggest sporting hit record levels in 2010 against
event on the planet is on a continuing backdrop of currency

Top of the table

to a clear winner away depreciations.
from the pitch. Bloomberg reported that gold prices
Auditing company advanced 24 per cent last year, while
Grant Thornton predicts that the football tournament will pump an Saudi Arabia is the leading foreign to the six member countries of the silver experienced its biggest yearly
estimated US$7.46 billion into the South African economy, creating direct investment destination in GCC, followed by the United Arab increase since 1979 as interest grew in
around 415,000 new jobs. the Gulf Cooperation Council Emirates (US$69 billion) and alternative investments.
Construction work on five new sports stadiums, major renovations on (GCC), according to figures Qatar (US$22 billion).
five more and extensive upgrades to airports, plus improvements to the released by the United Nations The figures revealed that more
country’s road and rail networks, will have an impact for years to come. Conference on Trade and than US$90 billion in direct lucky for some
It is believed that the World Cup will attract three million visitors, Development. investments flowed to Saudi The Kingdom of Saudi Arabia remains
while an international television audience of billions will tune in to The Kingdom received just over Arabia from 2004-08 thanks to on course to become one of the 10 top
watch the exploits of players such as Cristiano Ronaldo and Lionel US$114 billion, which equates to reforms aimed at diversifying an most competitive countries after being
Messi, further boosting South Africa’s tourism industry. almost half the total amount sent oil-reliant economy. placed 13th in the World Bank’s annual
Doing Business report.
The country has leapt up the rankings

Between the lines

The Kindle electronic book reader
was a marketing phenomenon
in 2009, and looks set to become
even more popular after online
retailer Amazon’s Christmas sales
of e-books trumped purchases of
traditional hard and paperback
publications for the first time.
The Kindle Reader saves time –
a book can be downloaded on to
in recent years, from 67th position in
2004 to 38th in 2006, 16th in 2007
and now 13th in 2009.
space, as it can currently hold up Saudi Arabia has been listed as
to 1,500 books. It is also good for the best place to do business in the
the planet thanks to the number of Middle East and Arab world for the fifth
trees that no longer have to be cut successive year thanks to a series of
down to be turned into paper. reforms that have greatly reduced the
It is estimated that around three time, cost and complexity of launching
million e-readers were sold in the a company and obtaining the necessary
United States in 2009 and that permits.The report also means that Saudi
number is expected to double this Arabia is ranked above Germany,
year with rivals such as the Sony Japan and France.

the device in just 60 seconds – and
Setting sail
Reader and Barnes & Noble’s Nook
also challenging for customers.
commodities
surge
Construction work is due to begin in 2012 on Utopia, a US$1.1 billion Commodities surged 24 per cent in
ocean liner which has been conceived as a floating luxury residence. 2009, achieving their biggest jump
The 105,000-tonne ship will feature 200 private residences, a 204-room since the 1973 oil crisis according to
boutique hotel, spa, theatre, nightclub, restaurants and swimming pools. the Reuters/Jefferies CRB Index.
Residences will range from two to five-bedroom homes and will vary Copper and sugar prices doubled,
in size from 130 to 610 square metres. while a 78 per cent increase in oil
Utopia, the third passenger ship to be built by South Korean company prices and a ninth successive yearly
Samsung Heavy, will perpetually cruise the world’s oceans, taking in gain for gold helped fuel the rise.
great cultural and sporting events such as the Olympics Games, the Some analysts are predicting that
Melbourne Cup, Wimbledon and the Cannes Film Festival. investment flows into commodities will
Services will include an art historian, personal shopper and qualified continue at the same rate, leading to
medical team. further increases in 2010.

015
spectrum
UK OUT IN FRONT
The UK has retained its ranking as the
leading European location for foreign
direct investment in 2008, according to
Ernst & Young’s seventh annual Country
Attractiveness Survey.
The study analyses actual inward
investment over the past 12 months and
attitudes of global investors regarding
their plans over the short to medium
term.
The UK received 18 per cent of
Europe’s foreign direct investment in
2008, followed by France with 14 per
cent, Germany with 10 per cent and
Spain with six per cent.
But the report’s author warned
that five years of sustained inward
investment growth in Europe came to
an end in 2008, with many companies
suspending geographical and market
expansion, while the true effects of the
global recession have yet to emerge.
Hot
destinations
Abu Dhabi has been named as one of
the top destinations to visit in 2010 by
editorial staff at Frommer’s, America’s
best-selling travel guide series.
The emirate features alongside Santiago
de Cuba, Cuba; the Florida Panhandle
beaches; Hawaii (the Big Island); Salta
Province, Argentina; Mexico City;
Melbourne, Australia; Hanoi, Vietnam;
Kerala, India; Tunisia; Copenhagen and
England’s Isles of Scilly.
016
Brazil in the spotlight
in the world by 2016, with growth to snapping up real estate in
anticipated to outstrip that of rival anticipation of future capital
nations such as Russia, India and growth. One local expert projects
Brazil is being widely tipped positive publicity on the back of even China. Brazilian property prices could
as an outstanding market for winning the rights to host both the International investment appreciate by up to 200 per cent
international property investment FIFA World Cup in 2014 and the consultancy Property Frontiers over the next decade, driven by
this year. Olympic Games in 2016. said: “Property investors from the country’s burgeoning economy
The largest country in South Brazil is widely expected to around the world are flocking and the pending introduction of
America is riding a wave of become the fifth largest economy to Brazilian shores with a view mortgages to overseas nationals.”
Rolling on Space agreement
Rolls Royce, one of the King Abdulaziz City for Science
world’s leading aircraft engine and Technology (KACST)
manufacturing companies, and NASA have signed a
is studying the feasibility of joint statement that allows
establishing a research and for collaboration in lunar and
development facility at King asteroid science research.
Abdullah Economic City’s The partnership recognises
(KAEC) Industrial Valley the Saudi Lunar and Near-Earth
ahead of building a full Object Science Centre as an
production plant. affiliate partner with the NASA
A delegation from Rolls Lunar Science Institute at NASA’s Ames Research Centre in California.
Royce recently visited Dr Haithem Altwaijry, deputy director of the National Satellite
KAEC and also toured King Technology Programme at KACST, said: “The Saudi Lunar and Near
Abdullah University for Earth Object Science Centre’s primary mission is to direct all lunar and
Science and Technology to near Earth object related research within the Kingdom of Saudi Arabia.
discuss collaboration with It will reach out to students in addition to researchers and present fertile
research teams. ground for scientific research.”
The Max Planck Institute of Molecular Cell Biology and Genetics in Dresden, Germany, has topped a poll to find the best
university place in the world to work. More than 2,350 experts took part in The Scientist magazine’s annual survey to find the top
challenge 10 international institutions from countries outside the United States. And the Planck Institute, which employs 400 full-time
researchers, won the accolade after being rated on a range of categories including infrastructure and environment, teaching
and mentoring. The top 10 list featured three British universities – Bristol (third), Dundee (sixth) and Cambridge (seventh) – plus
two from Canada – Dalhousie University, Halifax (fifth) and University of Toronto (10th).
Carved through time.

Discover a region rich in diversity.

Every month, only on CNN International.
cnn.com/ime

In association with

012
 BBC WORLD NEWS is a trademark of the British Broadcasting Corporation, © BBC 1996

018
Never stop asking

Above: Theo
The longest bull run in nearly
a century of art-market history ended
van Doesburg at Sotheby’s in London on September
Right: Tim Burton 15, 2008 with the landmark sale of 56
works by Damien Hirst for a staggering
US$70 million, a record sale for a single
artist. More importantly, perhaps, the
auction also brought to a close a boom
era, for just as the auctioneer called out
the bids, Lehman Brothers was filing for
bankruptcy in New York.
Prior to the sale at Sotheby’s,
the world art market had already
slowed down after prices had risen
continuously since 2003. The market
peaked in 2007 when it was worth more
than US$65 billion, double the figure
art+culture
Art on
the edge
International art markets are seeing
more red than black, but new exhibitions
continue to earn high interest.
n ti a
vince
lisa
n by
wr itte
of five years earlier. Since then the
figure has dropped to around US$50
billion. The first part of 2009 saw sales
freeze, galleries shut their doors and
museums cut budgets, lay off staff or
hike admissions.
Dozens of shows have been cancelled
or postponed around the world, but
worst-hit were US institutions, which
saw much of their sponsorship and
endowment wealth evaporate with the
market losses.
None have been immune from
trouble. The investment portfolio
of New York’s Museum of Modern
Art shrank 23 per cent, to US$610
million from US$788 million, over
d man
hy wal
dorot
nd
the course of last year. In February
2009, the Metropolitan Museum of Art
announced that its endowment lost
US$700 million over the preceding
eight months, or a quarter of its value,
declining to US$2.1 billion.
In November, an exhibition of
Brazilian artist Cildo Meireles was due
to open at the Los Angeles County
Museum of Art after first showing at
Tate Modern in London and the Museu
d’Art Contemporani de Barcelona.
The entire North American tour was
cancelled. Likewise, the Victoria and
Albert Museum’s touring Surreal Things:
Surrealism and Design, which was due to
have been presented at the Minneapolis
019
art+culture

1. 2.
Institute of Arts in February this year, has
now been cancelled. “We have seen some
cancellations of our travelling exhibitions
and it would be foolish to pretend there
are no problems,” says V&A director
Mark Jones.
But it seems the first timid steps toward
a recovery were witnessed at the end of
2009, with some impressive sales at the
major auction houses. Christie’s sold
Raphael’s Head of a Muse for US$48
million, making the Old Master’s artwork
the priciest to be auctioned off last year.
In fact, the recession has presented
museums (and art connoisseurs for
that matter) with a rare opportunity to
acquire important works at lower prices.
“A number of museums are stepping up,
feeling that they could buy things,” notes
Allison Whiting, senior vice president and
director of museum services at Christie’s.

Art Agenda
Centre Pompidou, Paris
Soulages
Retrospective of works by Pierre
Soulages, known as “the painter of
black and light”, as he nears his 90th
birthday.
Until March 8
Istanbul Modern, Istanbul
Time Within Us: Photographs from
Turkey, Russia, and Greece
Photographs from 5 photographers
from each country will be showcased.
Until May 16
Museum of Modern Art, New York
Tim Burton
The eccentric vision of director Tim
Burton’s Gothic fantasies.
Until April 26
Mori Art Museum, Tokyo
Roppongi Crossing 2010: Can There Be Art?
Series of exhibitions, held once every
three years, highlighting artists working
in Japan.
March 20-July 4
Museum of Contemporary Art,
Sydney
Take Your Time: Olafur Eliasson
Works spanning this Danish-Icelandic
artist’s diverse career from 1993 to the
present day.
Until April 11
Städel Museum, Frankfurt Contemporary work East in the 21st century. Sometimes 1. Botticelli
Botticelli from a new wave of Saudi disturbing, sometimes comforting, the 2. Saudi
Eighty works by the artist, his workshop Arabian artists is touring exhibition evokes a myriad of emotions Impressions
and contemporaries, including Idealised the world thanks to the and challenges viewers to rethink
Portrait of a Lady. Edge of Arabia exhibition. their preconceptions and to open their
Until February 28 eyes to the new Saudi Arabia. But the
Looking at the contemporary traditions and heroics of the past, the
Tate Modern, London art landscape, the vision for the Edge roots of an evolving heritage, are still
Theo van Doesburg of Arabia exhibition 2010 is one of referenced, even as the artists look
Works by the pivotal avant-garde strong themes, showcasing the ever- forward to new horizons.
Dutch artist, plus 350 works by other evolving world of what is the new Saudi Launched on its world tour at the
key figures such as Jean Arp, Piet Arabian art scene. The featured Saudi Global Competitiveness Forum in
Mondrian, Sophie Taeuber and more. artists, both male and female, explore Riyadh, the leading global event of
February 4 – May 16 the complexities of life in the Middle its kind, in January 2010, the Edge of
Arabia 2010 exhibition will travel to
Art Dubai, the region’s premier art
event, in March. It will then move
Top 10 Art Sales of 2009 on to the Berlin Biennale in June and
July before travelling to Istanbul, a
Raphael’s Head of a Muse US$48 million (Christie’s) European Capital of Culture this year,
Henri Matisse’s Les coucous tapis bleu et rose US$46.5 million (Christie’s) for an exhibition with the Contemporary
Andy Warhol’s 200 One Dollar Bills US$43.8 million (Sotheby’s) Istanbul Art Fair in November and
Rembrandt Harmensz van Rijn’s Portrait of a Man with Arms Akimbo US$33.2 million (Christie’s) December.
Constantin Brancusi’s Madame LR sculpture US$37.6 million (Christie’s) In partnership with SAGIA and the
Eileen Gray’s Dragons armchair US$28.3 million (Christie’s) Saudi Arabian Ministry of Culture
Piet Mondrian’s Composition avec bleu, rouge, jaune et noir US$28 million (Christie’s) and Information, the UN Alliance of
Alberto Giacometti’s L’Homme Qui Chavire bronze US$19.3 million (Sotheby’s) Civilisations and the British Council,
Edgar Degas’ Petite danseuse de quatorze ans bronze US$19 million (Sotheby’s) this year’s exhibition is expected to
Piet Mondrian’s Composition avec grille 2 US$18.6 million (Christie’s) receive greater accolades than ever before

020
 The photography
of Ream Al-Faisal is
important on many
levels. She is one of
the first women to be
granted permission
to photograph in the
Holy cities of Mecca
and Al-Madinah,
where she captures
the spirituality
and beauty of the
pilgrimage, in spite
of the technical
difficulties. She
says, “I’m neither
traditional, nor
modern. Nor
Mohammed Farea, an architect from Riyadh and one of the youngest contemporary, or
people featured in the exhibition, says that the traditional building style old-fashioned for that
is part of his nation’s heritage and should be preserved in the brightly matter. Perhaps the
coloured, stylised structures in his painting Najd, which was completed in best thing to do is say
2008.”I’m trying to find a way of combining new construction models with my work is a sign of
traditional learning.” love.”

In Merwed, Maha Malluh from Riyadh transforms the viewer into a voyeur
of sorts with photographs of common objects identifiable only by their
outline and degree of translucency. Much as an airport security guard
views intimate belongings in scanned luggage, we must instantly determine
which are threats and which are benign. “Good art... forces you to pause,
to contemplate and think harder about your surroundings.”
Ayman Yossri Daydban from Jeddah creates a buffer between the fictional
world of film and the real world with a crowd of tissue boxes, each with a
colourful poster for a famous Arabic film from the 1940s or 1950s. In both
world’s one often weeps and reaches for a tissue, or maharam, the Arabic
word that relates to both tissues and close family – both act as emotional
buffers against the outside world. “I don’t want anything I make to be still.
My objects must not die. Instead I want to keep them permanently in a
state between birth and death.”

021
art+culture

1. 2. 3.

1. Roppongi Crossing 2010: Can There Be Art?

2. Idols of the Arab World
3. Saudi Impressions
4. ATHR Gallery

4.

while developing cultural links and
opportunities between Saudi Arabia and
the international community.
Seventeen Saudi artists from
throughout the Kingdom exhibited
together for the first time in Edge of
Arabia 2009, exemplifying the new
creative movement and expressing a
range of relationships: with Islam, history,
culture and ecology, among others.
saudi arabian exhibitions
ATHR Gallery
Fifth floor Business Centre, Wing B
Serafi Mega Mall, Prince Mohammed
Abdul Aziz, Tahlia St, Jeddah, KSA
One of the first contemporary art
galleries in Saudi Arabia, ATHR is
committed to creating a thriving
environment for artists from the
Kingdom. Founded by Hamza Serafi and
Mohammed Hafiz, two local art patrons,
its goal is to cultivate an environment
that nurtures and promotes modern
Saudi and Arab artists across the region
as well as internationally. The gallery
participated in Edge of Arabia in London
in 2008 and in the Venice Biennale in
2009, as well as Art Dubai 2009, where it
will once again participate this year. The
gallery exhibits international as well as
regional artists.
Idols of the Arab World
A Pop Art Exhibition
January 24 – February 10
7.30pm – 9.30pm
Featuring works by Hamad Al Saah,
Ali Sultan and Bassem Al-Sharqi, this
exhibition takes the style and themes
of the Pop Art movement in delightful
new directions.
Hewar Art Gallery
52nd floor, Kingdom Tower, Riyadh
Saturday – Thursday, 9.30am-9pm
Promoting art as an important record
of a nation’s cultural identity, the Hewar
Art Gallery organises exhibitions for Akeel Al Awsi
contemporary artists from all over the Works by Paris-based Iraqi artist
world, but especially for those whose Akeel Al Awsi.
work is influenced by the heritage,
culture and environment of the
Arab world. Its extensive permanent
collection of paintings, sculptures,
engravings and calligraphy includes
Artist
work from some of the region’s most Survival
talented men and women, making it a
respected home for Arab modern and Rating
contemporary art. The top 10 current artists expected to
Celebrating its fifth anniversary remain important figures in a decade’s time.
this year, the gallery has three 1. Gerhard Richter
exhibitions planned during the next 2. Jeff Koons
three months. 3. Cindy Sherman
4. Robert Gober
Shape of Light 5. Andreas Gursky
Photography by Her Royal Highness, 6. Damien Hirst
Princess Reem Al Faisal from her 7. Anish Kapoor
Worldwide Travels collection. 8. Bill Viola
9. Jeff Wall
Saudi Impressions 10. Mike Kelley
Works by 13 Saudi artists Source: ArtTactic

022
 “Our reforms demonstrate
our determination
to create the most
attractive destination
for investment
opportunities in the world.
We invite investors to
learn more about the
positive business
environment in the
Kingdom and to join
in the growth of the
business community.”
HE Amr Al-Dabbagh,
Governor of the Saudi Arabian General
Investment Authority

Michael Porter Dr Michael Webb

024
 competitiveness

Competitive
forces
Competition is the intrinsic core of
commerce – to develop and succeed,
countries and companies must produce
at their competitive best.
Written By Joanne Molina

In today’s business environment, competition is about meeting the

needs of the marketplace. While no single country or company can be the best at everything, each one
must be able to satisfy at least a portion of the market in order to remain viable. Creating and sustaining
the ability to compete, ie, competitiveness, is a vital issue, especially for emerging economies.
But what is the relationship between competitiveness and economic development? How is cooperation
in modern society linked to success in the new global economy? Presenting and discussing such issues
is the role of The Global Competitiveness Forum, which was established in 2006 by the Saudi Arabian
General Investment Authority (SAGIA) as an opportunity for global leaders who share a mutual interest
in competitiveness to raise awareness and enthusiasm surrounding the competitive challenges. The 2010
forum will focus on creating an environment for sustainable competitiveness. Important conversations
illustrate how the world’s leading economists and development experts are invested in sustaining
competitiveness in the 21st century and how it is linked to the region’s role in the global economy.
Addressing the competitiveness of Saudi Arabia, SAGIA Governor, Amr bin Abdullah Al-Dabbagh,
says, “We are focusing on attracting investment into those sectors in which the Kingdom has a competitive
advantage – energy, transportation and knowledge-based industries – as this is where we have the most
to offer.”
According to Dr Michael Webb, Senior Manager of the Regulatory Economics Group, LLC, in Herndon,
Virginia, USA, “You need to begin with the essence of economics, which is the study of choice. Specifically,
economists examine the choices people make in a wide variety of contexts, including market contexts
and non-market contexts.” He continues, “In most instances individuals have a wide variety of choices,
particularly over the long-term. To successfully meet the needs of customers an individual, firm or country
should focus on its comparative advantage – in other words, no individual, firm or country can excel

025
competitiveness
in all areas. By specialising in those areas where one has a comparative
advantage, one can provide a superior product. Thus, it is those areas
where one can be most competitive.”
The idea of competition is intrinsic to commerce between humans as
individuals and societies. There is not a point in recorded history where
one cannot witness the impetus of enterprise or the flux of goods and
services as dictated by the viability of one provider versus another. The
idea of competitiveness in trade and industry is, by nature, perpetually
evolving, as its very being is tied together with the fate of a perpetually
evolving world. As Michael E Porter, AllWorld Network Chairman,
Harvard Business School Professor and speaker at this year’s GCF explains,
“Competitiveness is driven by the productivity with which business can be
done in a nation.” The broadness of the statement is telling, as it indicates
that the question of which nations can compete successfully within the
world market is more open than ever. What we refer to as commercial
competition is “something that’s easy to talk about, but difficult to achieve
over the long-term,” explains Lyn Baranowski, Vice President of Vatera
Capital, a pharmaceuticals investing firm in New York, “because being
truly competitive means that you have to get many different things right.”
economic growth and
“Competitiveness drives
sustained prosperity, encouraging
contributes to
entrepreneurship and the creation of new jobs.
Saudi Arabia’s increased competitiveness signals the ongoing
development of a dynamic and diversified
economy.”
Dr Awwad Al-Awwad,
Deputy Governor, Investment Affairs, SAGIA and President, National Competitiveness Council
Since progressing through the industrial revolution of the 19th century
and the digital revolution of the last half-century, the idea of commercial
competitiveness is now entering a truly global stage.
One of the most vital aspects of a given nation achieving and
maintaining a competitive status at a global level is the development of
a social, governmental and economic infrastructure that fosters this goal
– a process which ideally will have the dual effect of improving quality
of life for the nation’s people as a whole. Porter explains, “Productivity
depends on many things, but some of the most important are streamlined
regulations and speed of doing business, good physical infrastructure
in logistics and communications, open and free markets to encourage
competition and the entry of new businesses, well trained and motivated
employees and managers and efficient access to low cost capital.”
John McArthur, CEO and Executive Director of Millennium Promise,
whose mission is to halve world poverty by 2025, explains that providing
opportunity domestically and incorporating social change into a programme
of national competitive viability is also vital for lasting stability and success.
“Economic competitiveness is grounded in productivity, which is in
026
turn a product of human capital, infrastructure, accountable institutions,
natural resource capital and local economic geography,“ he explains. “Basic
investments in child health, maternal health, education, environmental
management and infrastructure are essential…to boosting economic
productivity. Many countries have promoted their competitiveness
through concerted efforts to ensure all elements of society have the greatest
opportunity to contribute to the economy and its self-sustaining growth.”
McArthur stresses that economic competitiveness actually demands a high
quality of life for all of a nation’s citizens.
In addition to improving the quality of life, paving the way for both
domestic and international business investment must also be coupled
by measures that bring about the social and political stability that enables
long-term business growth. Webb emphasises that “the nation should
focus on promoting the rule of law, and specifically adopting institutional
mechanisms that will assuage investors’ concerns that their property will be
expropriated. Investors have a variety of choices regarding the location and
type of investment. Given two projects of equal market risk, but different
political risk, they will always choose the project with lower political risk.”
The opening of markets is a double-edged sword that provides both the
challenges and benefits of ever-increasing competition. Daniel Griswold,
Director of the Center for Trade Policy Studies at the Cato Institute, states it
succinctly – “Competition in a global economy means that producers must
work extra hard to convince consumers to buy their products. Companies
can no longer assume a dominant share of their domestic market.” While
nations with a global business presence established over decades (or
centuries) capitalise on their status as a known quantity, countries seeking
to strengthen and diversify their presence might capitalise on their own
unique advantages – particularly in light of the current global economic
climate. Porter cites Saudi Arabia as an example: “The economic downturn
has made global competition even more intense, and made productivity even
more important to national success. Saudi Arabia has advantages due to its
sound banking system and stable national budget. Now is the time to use
this soundness and stability to grow and diversify. There are opportunities to
attract much needed foreign multinationals to accelerate the efficiency and
technology of business in the Kingdom, and invest in new businesses within Successful, competitive individuals
Saudi Arabia.” sharing their expertise at SAGIA’s
Saudi Arabia certainly seems intent on creating an attractive Global Competitiveness Forum,
environment for international investors. In addition to beating regional 2010
027
competitiveness

“Productivity
depends on many
things, but some of
the most important
are streamlined
regulations and speed
of doing business, good
physical infrastructure
in logistics and
communications, open
and free markets to
encourage competition
and the entry of
new businesses, well
trained and motivated
employees and
managers and efficient
access to low cost
capital,” Porter says.
competition to become the home of the GCC (Gulf Cooperation Daniel Griswold
Council) Bank, King Abdullah has launched the “10 By 10” programme,
an initiative to place Saudi Arabia amongst the top 10 easiest countries self-imposed challenge on the part of the current Saudi government. Porter
in which to conduct business by the end of the year 2010. It is not an emphasises how education and technology are crucial to maintaining a
unlikely goal – over the past four years the country has risen from 67th competitive edge. “Education and technology are the two keys to long-
to 13th place (out of 181 countries) in the World Bank / International term increases in prosperity. Rising productivity is only possible with
Finance Corporation’s Ease of Doing Business rankings. improving skill levels among workers and managers. This goes hand in
hand with improving technology to equip workers with the best tools
The country, which naturally offers extensive tax breaks and and allow companies to produce high quality products with up to date
streamlined routes of investment to foreign companies, has also wisely production methods. Fortunately, initiatives such as Al-Faisal University,
launched a programme providing further tax privileges for investments KAUST, and many others are seeking to address these challenges.”
in six of the Kingdom’s less-developed regions. Another intended spur
for regional development is the establishment of four “economic cities” – Saudi Arabia’s vast stores of energy and financial capital give it
being built from the ground up to the tune of over US$60 billion to, in the a distinct advantage in its bid to place itself favorably as a competitor
words of the Saudi Arabian General Investment Authority, “create over for international business and investment. In terms of having an ideal
a million new job opportunities, homes for 4-5 million residents – and, relationship with investors, Webb’s insight is sage, “There is no ideal
most significantly, contribute US$150 billion to Saudi’s GDP.” relationship that Saudi Arabia or any country might have with its investors.
Along with the courting of potential foreign business partners, the Saudi Instead, Saudi Arabia should focus on broad principles including
government has also made steps toward a more inclusive and incisive establishing appropriate institutional mechanisms. It should focus on its
approach to education within its own country. The King Abdullah University comparative advantages. Energy and access to significant financial capital
for Science and Technology (KAUST), which opened this past September, would represent obvious areas of comparative advantage.” Porter agrees,
not only places a focus squarely on the crucial arena of technology – illustrating that the competitiveness of nations, as that of companies, rests
uniformly agreed upon as a major engine of socio-economic improvement largely on diversification of business interests and opportunities, as well
for any nation – but is also the first co-educational campus in the Kingdom. as a distribution of resources that, over the long-term, proves beneficial
The realisation of the University also represents a reassuring to both the investor and the given nation’s workforce and population.

028
029
communication

CLoud+clear
The key to competition in a period
characterised by constantly
evolving, every-changing, high-speed
technology may be collaboration.

030

Left: Teleconference meeting.
Right: Wim Elfrink, Vice-president
and Chief Globalisation Officer,
Cisco Systems.
Cisco Unified IP
conference station 7936
written by richard warren
globalisation of tech-
nology creates opportunities and challenges, both virtual and real,
as the world continues to shrink. Accessing data and maintaining
communications, especially visual contact, wherever you may be is
rapidly becoming a vital aspect of being competitive and the best way to
achieve this state of constant contact with the rest of the world may be
through technological cooperation and collaboration.
Collaboration is driving the next wave of technological development,
says Wim Elfrink, Executive Vice-president and Chief Globalisation
Officer of Cisco Systems. New collaborative tools such as video and
audio will augment today’s text-based communications in the years
ahead, the company forecasts. ‘Cloud’ computing – an internet-based
development of computer technology where users do not need to have
expert knowledge of the infrastructure that supports them – and greater
mobility for users will also feature heavily.
Visualisation, ie using video, is forecast to become the norm
when communicating in the future. Video links boost openness and
discussions in online meetings, leading to more creativity and faster
decision-making, Elfrink says. Avistar Communications Corp anticipates
that videoconferencing will become easier to use, more available and
ubiquitous, while significantly helping with productivity. New video
conferencing and video phone products already on the market include
Cisco’s TelePresence and the Avistar C3.
According to a study published by Cisco last year, online meetings
that use video can help build stronger relationships between participants
and reduce culture clashes and personality conflicts. However, video
communication can also heighten anxiety and self-consciousness, the
study found, so it recommended that businesses help employees develop
the skills to make the most of these tools.
Video could prove particularly useful in Middle Eastern cultures,
where building a personal rapport is essential in business.
“Video could help accelerate relationship building with ‘high context’
cultures such as China, Japan and the Middle East where relationships
are based on integrity and social interactions,” Elfrink says, “Countries
such as Germany, Sweden and Denmark are characterised by their ‘low
power distance’ culture, meaning that colleagues generally relate to each
as equals, regardless of formal positions. So when people from ‘low power
distance cultures’ interact with people from a culture where hierarchy is
much more rigid, such as the Middle East, video can provide non-verbal
signs of respect to lessen the effects of these differences.”
Just as ‘visualisation’ has become a buzzword in the world of
technological innovation, so has ‘mobility’, whereby people can move
around the world while maintaining continuous contact with people and
online-content.
United States computer manufacturer, Dell, recognises the move
towards increased mobility. The company launched its first smart phones
in Brazil and China in December 2009 and will introduce these products
031
business

elsewhere in the years ahead. Smart phone technology will be the fastest
growing category of handsets, especially in poorer countries that lack the
Above: Cisco headoffice
infrastructure for land lines and where they will serve as substitutes for
Left: John T. Chambers, Chairman
computers, predicts The Economist.
& CEO, Cisco Systems.
Connectivity saturation rates continue to increase, the global economic
downtun notwithstanding. In 2010, there will be 80 mobile phone
subscriptions per 100 people worldwide, with the numbers increasing
annually as new generations of technology expand their capabilities. mobile phone subscriptions
Mobile entertainment bought over the phone is expected to grow by 28 per 100 people, globally
per cent in 2010 to more than US$54 billion, according to the Mobile
Entertainment Forum. 2009
A significant aid to this increased mobility will be the development 73.5

of cloud computing. Today, data centres are geographically dispersed 2010

and operate independently of each other, which means data can only be 80.0

accessed from certain computers connected to a particular data centre’s 2011

network. Studies show that only 10-20 per cent of most business data 85.2

centres are virtualised. By placing all data on the internet, and optimising 2012
storage and computer technology, it should be possible to access 89.6

information anywhere, anytime. This will make it easier for people to

work from home or anywhere else they can go online.
“This blurring of the lines between the workspace and personal space global broadband
will provide employees and employers with unprecedented levels of subscriber lines
flexibility and productivity,” Elfrink says. The increasing demand for PCs, in million
with sales expected to be up around eight per cent this year, will translate
to 2.2billion people using the internet by 2013. 2008
“High-speed networks have become part of the basic infrastructure 396
of any country and, as the foundation of the knowledge economy, they 2009
enable growth and will help to power recovery from the current economic 467

crisis,” he says, “It is essential for governments and business leaders to 2010
encourage universal broadband access to make the most of what high- 531

speed networks have to offer. 2011

“For many countries, broadband networks offer a unique, cost-effective 588

032
 communication

Cisco in brief
n Cisco was founded in 1984 by scientists at Stanford University.
n Cisco went public in February, 1990. Its share price was six cents.
n The company has 63,756 employees worldwide.
n Cisco made US$36 billion in revenue in 2009.
n The company bought seven companies around the world in 2009.
n The company’s Linksys brand received 151 product and corporate
awards in 2008.
n Cisco has won an additional 48 technology awards worldwide.
n Time Magazine’s “100 Most Influential People” list includes John Chambers.
n John Chambers received the first ever Clinton Global Citizen award from
former US President Bill Clinton in 2007.
n John Chambers co-sponsors the Jordan Education Initiative.
n In 2006, John Chambers co-led a delegation of US businessmen to form
Partnership for Lebanon.

But introducing these new technologies is not without its challenges.

Data security is a problem because network-based collaboration
introduces corporate data into a broader environment, which makes
it tougher to protect, says Elfrink, who is concerned about criminal
exploitation.
From personal identity theft to full-fledged corporate espionage,
the possibility of compromised data is a valid concern. The more data
involved, the greater the risk to businesses and individuals
The loss of intellectual property, including proprietary product
blueprints, financial data and merger and acquisition plans, can damage a
company’s reputation, undermine its brand or jeopardise its competitive
edge. Breaches of regulatory requirements for handling sensitive customer
data can reduce consumer confidence and lead to fines, indicating a need
for security awareness training for staff to help mitigate against these
threats.
Tandberg Tactical “While many spammers continue to operate with extremely high
MXP portable video- volumes, some are opting for lower-volume but more frequency in an
communications tool attempt to remain under the radar. Attacks are now driven by profit, not
just notoriety. With this increased focus on the profit motivated attack
there come new methods of attack, making it even more difficult to defend
opportunity to enhance competitiveness while rising above physical against. Attackers now often operate slowly and over a longer period of
“For many and geographical constraints. Countries will see major benefits if they time, using a stealth approach to hide their intentions,” comments Elfrink.
countries, understand the power of broadband networks and are able to implement The effort of overcoming challenges will be worth it, according to
broadband strategies to seize the moment. Not only will these networks improve Elfrink, because these technological developments will contribute to a
national competitiveness across a range of sectors, they will also turn the better work-life balance and the development of sustainable communities
networks challenging global economic environment into an opportunity for new where more people can work from home, reducing the need for
offer a unique, growth, with employment creation driven by the knowledge economy commuting.
cost-effective having a major and lasting impact on a country’s welfare,” says Elfrink. “The shift to collaboration and productivity enhancing tools will help
The latest in cloud technology is expanding the telephone handset to us to be more effective in our daily lives,” Elfrink says, “Collaboration
opportunity become a web-enabled touchscreen device with such applications as a technologies like WebEx and TelePresnce have reduced our travel and
to enhance calendar, SMS and email retrieval, allowing it to connect to the users’ enabled us to spend more time with our families. This is extremely
competitiveness mobile phones so contacts and voicemail messages can be shared. important since over the next five years, 500 million people will be
urbanised and technology will play a significant role in managing this
while rising Cisco and BT came together to launch a cloud-based IP telephony change.”
above service in December 2009 for collaborative voice communications. It Working with governments, the company wants to use the internet to
physical and allows businesses to bring converged voice, mobile and data services to integrate public services, including transport and utilities, so managers
every desktop in their organisation. Available now in Britain, the hosted can respond quicker to problems and plan ahead more easily. This
geographical IPT service will be available to businesses in the United States, Europe, will provide a better quality of life for citizens and improve economic
constraints” Africa and the Middle East this year. development, the company says.

033
034
 architecture

The
Bilbao
Effect
Frank O Gehry’s architectural
masterpiece, the Guggenheim
Bilbao, revived a rusting Spanish
town. but is it still possible to
recreate the bilbao effect in
the current architectural and
economic reality.

written by lisa vincenti

bilbao, before the coming of the

Guggenheim, was noted for its gritty steel mills and shipyards.
After the coming of Frank O Gehry’s groundbreaking design,
the city morphed into an international tourist destination,
home to sleek hotels, designer boutiques and the kind of
swank restaurants once found only in Madrid or Barcelona.
More than nine million tourists have made the pilgrimage
and the museum has generated what some estimate to be
US$500 million in economic activity for the region during its
first three years alone and US$100 million in taxes.
It’s called the Bilbao Effect, and civic leaders from Miami to
Milan to Moscow are banking on it to reinvent themselves. But
despite attempts to emulate  Bilbao by recruiting all-star architects
such as Zaha Hadid, Daniel Libeskind, Sir Norman Foster and
Swiss firm Herzog & de Mueron to design spectacles elsewhere
in the world, very few have succeeded in generating the buzz
and magic of Bilbao. Gehry’s architecture, the Guggenheim’s
art, and the charm of gritty Bilbao have proven an irresistible
combination.
“No one had heard of Bilbao, or knew where it was,” states
Terence Riley, the former director of the Miami Art Museum
and a former architecture and design curator at the Museum
of Modern Art in New York. Nobody knew how to spell it.
It happened in the fall of 1997. The Miracle in Bilbao
screamed the cover of The New York Times Magazine, in which

035
 architecture
1.
Tourism Australia © robert wallace
© paris tourist office – photographe: stephane querbes
architecture critic, Herbert Muschamp, likened the just-
finished voluptuous museum to the reincarnation of Marilyn
Monroe. Even architectural virtuoso Philip Johnson went so
far as to call it the greatest building of our times. But there can
be only so many great buildings, and Bilbaos.
Built on an old shipyard on the edge of the Nervin River
which snakes through Bilbao, the city was the nexus of Spain’s
Industrial Revolution, with its belching factories and iron-
rich mountains. Once the warehouses closed and production
moved offshore to places like China, what remained was
a wasteland of rusted vessels and soot-covered buildings,
a post-industrial vacuum that carried with it a charm of its
own, an edginess to offset the billowing, gleaming sails of the
Guggenheim Bilbao.
“Gehry’s Bilbao has conflated cultural, economic and
political interests, alerting all to what a dazzling object in the
cityscape can accomplish,” explains Robert A Ivy, the editor in
chief of the journal Architectural Record.
Frank Gehry built the spectacular scaled Guggenheim
museum in Bilbao for less than US$100 million 11 years ago.
It paid for itself within a year and spearheaded an economic,
social and cultural revival of the Basque region, which is now
one of the most popular destinations in Spain after years
blighted by terrorist violence.
Its appeal hasn’t waned, even though the travel industry
witnessed one of it’s worst years in decades. Travellers to
036
2.
3.
Bilbao spent US$332 million in 2008, according to a report
released by the Guggenheim, while the museum generated
nearly US$42 million in revenues for that year alone. Since
its opening in October 2007 through 2008, the direct
expenditures of visitors, excluding more than US$431 million
for the treasury and employment (which rose from about 800
to 4,196), was a smashing three billion Euros, not bad for a
building that cost Gehry only US$100 million to build just
more than a decade ago.
QUEST FOR THE NEXT BILBAO
Architects, students and city planners throughout the world
studied the Bilbao Effect, as second-tier cities sought to
repackage themselves with their own architectural trophies.
But none have drawn the hordes that make their way to
Bilbao. In Cincinnati, Ohio, a rust-belt town in the US
Midwest, Hadid’s addition for the Contemporary Arts Center
attracted the attention of architourists, a phrase coined in
2002 to describe those globetrotters stopping by just to soak
up designs. Not too far away, the Milwaukee Museum of Art
commissioned post-modernist Santiago Calatrava to design
its Quadracci Pavilion. In London, Herzog & de Meuron’s
addition to the Tate Modern now is one of the UK’s top three
tourist attractions.
  “Some of our donors who’ve made major contributions
since the Guggenheim opened in Spain have told me they’ve
1. Eiffel Tower
2. Sydney Opera House
3. Frank Gehry
4. City of Arts & Sciences in Valencia, Spain.
Designed by Santiago Calatrava.
5. Sir Norman Foster
6. Zaha Hadid
done so because of that,”  notes Contemporary Arts Center’s
director Charles Demarais “It’s clear that people are excited
about exciting architecture.”
People do go out of their way to visit buildings, but they
were usually ancient works of art like Chartres Cathedral, or
historical monuments like the Tower of London or ancient
sites like the Pyramids of Egypt or the ruins of Machu Pichu
in Peru. Historically, buildings by modern architects were
objects of veneration for students and architects alone, but
they were not paid much attention to by the general public, at
least until Gehry rewrote the rules.
A trip to Calatrava’s hometown of Valencia in Spain and
his vision for the futuristic City of the Arts and the Sciences,
completed in 2004, turned the city into a destination for design
buffs, drawing tourists from rival cities such as Barcelona and
Madrid. So while the spiky, organic shapes of Calatrava have
boosted the number of visitors to Valencia, it hasn’t generated
the widespread enthusiasm of Bilbao.
In Lithuania, civic planners have just completed a
competition for the anticipated Vilnius Guggenheim
Hermitage Museum. The Guggenheim selected Hadid to
build a new museum in Vilnius to open in 2013. “This is an
important project in a move to attract tourists to Lithuania,”
Gediminas Kirkilas, the countrys prime minister says. “It is
also important to Lithuania’s image.” The estimated value of
the project is US$117 million, with the Lithuanian government

to pay 10 to 15 per cent of the total. The museum will build its
own collection and display art from the Hermitage and the
Guggenheim. Arturas Zuokas, a former mayor of Vilnius who
is an organiser of the project, said the museum could draw
400,000 visitors a year, half of them from outside Lithuania.
END OF AN ERA
The Bilbao Decade, as some in the field would call the epoch
ushered in by Gehry’s fantastic creation, inspired a boom
of wild, fantastic structures around the world. The Petronas
Towers in Malaysia, CCTV headquarters in China, Jakarta’s
Regatta Hotel, Antilia residence in India, Aqua in USA, Russia
Tower in Russia and Burj Khalifa in Dubai, are a mere shortlist
of mind-blowing projects recently completed or soon-to-be-
finished. Sure, Dubai is flocked to by tourists around the world
for its architectural luxuries, but there are scores of them. The
power of one building to reinvent a decaying city and capture
the imagination and attention of the world is a rare occurrence.
In fact, in a speech at the opening of his Serpentine Gallery
in Hyde Park, London, Gehry said that the so-called Bilbao
Effect had been misunderstood and is hogwash. A really
successful building, like the Guggenheim, cannot simply be
4.
churned out to order. “It is kind of miracle, you dont quite
know how it happens,” Gehry says. “In the case of Bilbao,
they asked for Sydney Opera House when we started, but
they had a comprehensive plan for the community. Foster did
the subway system, Jim Stirling was doing a train station that
never happened, Calatrava did the airport and everybody did
a vineyard.
“So there was sort of an intent to change the community,
and it worked.”
Jack Pringle, former president of the Royal Institute of
British Architects, adds that while Gehry’s Guggenheim
played a central role in repackaging Bilbao, it was also other
less heralded improvements that made the city’s reincarnation
possible. “Bilbao was a spectacular example of how to
regenerate a city. The lesson to learn is that they had a strategy
which included both infrastructure and iconic landmarks. It’s
the combination of the two that works – a cocktail that can
make the most amazing difference if you get it right,” states
Pringle.
But is Bilbao, and the era of architectural history it
introduced, drawing to a close? Severe architectural recession
on the one hand, grotesque architectural luxury on the other,
Mecca expansion
King Abdullah Ben Abdul-Aziz of Saudi Arabia has backed
a plan to redesign the Holy City of Mecca where devout
Muslims make the Hajj
5.
(pilgrimage) each year.
Zaha Hadid and Foster +
Foster Partners have been
approached to redesign
the centre of Mecca, to
‘re-envisage’ the Al-Haram
mosque and to present
alternatives for Mecca’s
northern expansion. The
hope is that the multi-
zoned, multi-billion dollar
6.
project will create an order
to the site that has evolved
somewhat randomly over
time, make the area more
accessible to pedestrians
and provide views of Al-
Haram from surrounding
areas, while not impeding
vehicular traffic. The vision
is to accommodate more
people – from 900,000 to 1.5 million in the first phase and up
to three million upon completion.
Plans for the redevelopment of Mecca incorporate 130
skyscrapers, including the Abraj al-Bait Towers, which will be
one of the world’s biggest buildings, a 2,000 room hotel,
convention centre accommodating up to 1,500 attendees, a
four-storey shopping mall and heliports.
The scheme, however, is not without controversy.
likely signal the dawn of a more restrained, conscious chapter
in the annuals of world architecture. Worldwide, people and
communities are seeking a return to a simpler life, one that
takes note of the resources spent and consumed, and also
has more of a connection to nature and the natural world.
Sustainability, organic and green will likely be buzzwords of
the next few decades.
“Buildings took on crazy forms, largely because the
computer made it possible for structural engineers to figure
out how to make almost any shape stand up,” pens Robert
Campbell, architecture critic for the UK Globe. “A few leading
international architects became, for the first time ever, media
celebrities. The Bilbao Decade produced some wonderful
buildings, but it was a time when the social purposes of
architecture were sometimes lost. Architecture is supposed to
be about making places for human habitation – rooms, streets,
parks, cities – not merely skyline icons or beach-front palaces.
“Just as one feels a page turning with the arrival of a new
American president, so a page is turning, once again, in the
history of architecture. That’s not to say there isn’t room for
energy and a little madness in the architecture of cities, but
excess backfires when it becomes the norm.”
037
industry

Warming
up to the
cashmere
challenge
written by Ruby Rogers

As the international demand for

cashmere soars TO AN ALL-TIME HIGH,
THE SUPPLY CHAIN IS met with new
challenges.

demand for more of the luxury fibre cashmere is

at a 25 year high, due in part to record-breaking temperatures. Coveted
for its soft, silky texture that is eight times warmer than wool, sales of
some items are up almost 300 per cent. “Cold weather is accelerating
sales as people are buying scarves, shawls, hats, gloves and socks,” says a
spokesperson from Johnstons of Elgin in Scotland, who stocks exclusive
department stores and designers such as Chanel with the luxury fabric.
Mary McGowne, founder of the Scottish Style Awards, feels that the
increase in demand may also be due in part to the global economic
downturn which has spawned an even wider trend – investment fashion.
“A recession forces consumers to think harder about what they spend
their cash on, and people look for items that will provide long-term value
for money,” she is quoted as saying. “Cashmere is a key commodity.”
However, she goes on to comment, quality is key.
Cashmere was once solely associated with luxury brands who sourced
the very best yarns for their well-heeled customers. Spun or knit into
a lightweight fabric, the yarn retains its loft (small air spaces trapped
between the fibres), which makes it warm without weight, making it ideal
for babywear as well as delicate, though expensive, garments for all ages.
Its exclusivity resulted from a scarcity of production; it takes the annual
yield of two to three goats to make a single sweater, driving up the price.
The finest cashmere in the world comes from the goats that graze the
Alashan Plateau, an area in northern China that straddles the Mongolian
border where nighttime winter temperatures plunge to as low as -40C.
The downy undercoat is the goat’s best defence against the extreme
weather conditions, which it sheds during the molting season in the
spring. The fine hair, which is collected with a coarse comb, fetches six
times more money than ordinary wool.
The highest quality of cashmere, pashmina, has been produced in the

038
Cashgora goats in the Pamirs of Tajikistan.

039
industry
valley of Kashmir for over 5,000 years. It is exceptionally light-weight,
soft and warm and naturally occurs in colours ranging from white to
grey, red, brown and black.
For cash-rich cashmere fans and investment fashionistas, it is a question
of when the latest collections hit the stores; for high street shoppers it is a
matter of making their way to the nearest shopping mall where designer
looks for less are served up in generous measures, causing even greater
pressures on the demand of this luxury fibre.
In an age when catwalk styles are snapped up and mass-produced,
one country has paved a path like no other – China. Now producing
approximately two-thirds of the world’s cashmere, followed by Mongolia,
Iran, India and Afghanistan, China has spearheaded a successful
campaign for cheaper cashmere, accelerating production to put prices
within grasp of the average shopper, thus taking this luxury fibre from
the upper echelons of the fashion industry, to the racks of ubiquitous
high street shops.
This might sound like the perfect solution – increasing supply to meet
a growing demand – but the breakneck speed at which cashmere is being
040
produced has meant that the breeding of goats has grown faster than any The number of
other livestock, putting tremendous pressure on the grasslands and rapidly goats to make
turning them into deserts. According to Carol Kerven of Odessa Centre UK,
a firm based in England with links to pastoral researchers and practitioners, Scarf 1
desertification in China has been caused by government policies encouraging
the migration of too many farming people into the grasslands, which were Woman’s sweater 2
formerly only lightly grazed by nomads’ livestock. Also contributing to the
problem are policies to settle these nomads, whose one-time mobility once Man’s sweater 3
protected the grasslands from overgrazing and desertification.
Research from a study by the Asian Development Bank reveals that Overcoat 24
desertification has resulted in a rising number of devastating dust storms.
In the 1950s, China suffered an average of five dust and sand storms each
year; in the 1970s that number had risen to 14 and by the 1990s storms
struck 23 times. More recently, storms have caused billions of dollars in
damages as well as many injuries.
Quite apart from the environmental impact of cashmere is the battle to
clean up its image, tarnished by traders willing to make cuts in order to win
orders. A 100 per cent cashmere label is not always what it says it is, and just like
other precious commodities, there are many grades of quality. For example,
 “In theory,
quality
cashmere
is the ideal
natural fibre
that will
not pill and
will keep its
form for
years, even
generations,
getting
softer the
more it is
used.”

Scottish Cashmere Club

sheep wool blended with dehaired cashmere fibres has been mislabelled as
100 per cent cashmere, reports the US Federal Trade Commission.
“Shorter, courser cashmere comes from new sources imported by
China in the last decade from suppliers in former Soviet Central Asia
[Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan],” Kerven explains.
“Goats in these countries have been interbred in the Soviet era with
Angola breeds. The result is ‘cashgora’, a courser, longer fibre that is not
true cashmere and is cheaper to buy from Central Asian producers.
Chinese manufacturers blend this cheaper cashgora with their own high
quality cashmere to produce a lower cost but poorer quality product.”
To combat the diluting of the luxurious fibre’s image, the Scottish
Cashmere Club, a consortium of the leading manufacturers in knitwear
weaving and yarn spinning, developed a trademark to designate quality
that can only be displayed on products that meet certain exacting
standards regarding origin, length and diameter of the fibre. With such
names as Pringle Scotland, who has been knitting cashmere since the
1870s, and Ballantyne Cashmere, who exports internationally to over
50 countries, Scotland is becoming known for its cashmere in much the
same way as the Swiss are known for watches.
Pringle creative director Clare Waight has transformed the company
from a knitwear label to a luxury ready-to-wear brand. “I’m inspired
by Pringle’s rich legacy of beautiful Scottish cashmere and my aim is to
embrace new approaches to knitwear and honour the brand’s heritage
by creating truly luxurious collections,” she says. True to her word, she
remained faithful to Pringle’s rich heritage for her Spring-Summer 2010
collection, with gorgeous knits in a chic colour palete of white, pale
lemon and grey.
The message to the consumer is to buy from a reputable source to
safeguard against cheap imitations and be prepared to pay good money
for good cashmere – and to look for the Cashmere Club trademark. It’s a
worthwhile investment, says Claudio Masserano of Masserano Cashmere,
a family run company based in the famous textile district of Biella, Italy.
“In theory, quality cashmere is the ideal natural fibre that will not pill and
will keep its form for years, even generations, getting softer the more it is
used. A quality cashmere product is something that becomes part of your
life and the lives of your children. I understand that this idea goes against
the so-called ‘fast fashion’ of today, but I am sure that it will continue to
survive. This is what I have learnt from my grandparents and parents, and
this is what I think about when we create our collections.”

041
business
written by lisa vincenti
The vanity business is positioning itself to come
out ahead thanks to lifestyle trends, emerging
markets and technological advances.
beautiful investments
The age-old quest for eternal youth and beauty is no longer
solely a feminine domain. With an ageing population and men entering
the vanity market, the beauty business, which has taken a hit in certain
sectors, is soaring in others.
Anti-ageing formulas, make-up and skincare products designed
to deliver an immunity boost or mood enhancing qualities have been
made possible by advances in biochemistry. But when creams and
potions aren’t enough to deliver the required results, non-surgical
cosmetic procedures, including injections, microdermabrasion and laser
treatments, increasingly come into play.
Once considered a secret never to be revealed, even top stars like
George Clooney, recently voted most elegant man by Hello! magazine,
now admits to having had cosmetic surgery to correct droopy eyelid skin
and puffy bags under his eyes. “I think it’s important to look awake,” he
commented on The Oprah Winfrey Show.
Despite the world financial upheaval, cosmetic companies Proctor &
Gamble, L’Oreal and Unilever managed to eek out minor gains, ending
2008 with a US$138.8 billion total profit, according to Beauty Packaging
magazine’s annual 2009 round-up. Overall, research company Euromonitor
International predicts that the beauty market will experience an average
annual growth of three per cent, reaching global sales of more than US$337
billion by 2012. But behind the numbers, dramatic changes have been
sweeping the industry, which varies widely depending on the region.
“The message is that there is no one-size-fits-all strategy for success,”
042
says Carrie Mellage, director of consumer products research for
worldwide consulting and research firm Kline & Company. “The unique
features of each country require marketers to think globally, but act
locally, to capitalise on specific opportunities. As an example, the rural
population in Brazil is a huge potential market that depends heavily on
direct person-to-person sales.”
In the United States, the dominant player with an 18 per cent share of
the worldwide market, department stores’ portion of total sales continued
to contract, prompting marketers and retailers to actively engage
customers with incentives. Brands like Lancôme, Estée Lauder and
Clarins have all stepped up marketing directly to customers with online
enticements like bonus gifts and free shipping with purchase, Mellage
says. By contrast, emerging markets, notably Russia, Brazil, India and
China, which are posting double-digit gains, are helping global players
weather the economic storm as consumers in these nations discover
more Western retail concepts. Buoyed by a burgeoning middle-class and
higher consumption levels, increases were noted across the board from
shops including Carrefour, Parkson, Wangfujing, Walmart and Sephora.
“People in the middle and low-income levels have seen a big
improvement in their purchasing power, and they’re spending more on
beauty products. But because value is still important, companies that
offer quality products with midrange price points are among the fastest
growing in the market,” Mellage says.
alamy
Scientific knowledge and technology have brought with them new

products that are actually capable of delivering the benefits of more
youthful skin or plumper lips. And many small players are entering
the field thanks to the internet and social media, which lower the cost
of launching and distributing products. Ultra-niche collections of
nutricosmetics, comprised of ‘nutritional’ actives like rhodiola rosea,
griffonia and superoxide dismutase, and cosmeceuticals, those made of
medical or pharmaceutical grade ingredients, are the coming trend.
“New technologies enable the next big thing. All that has come before
has brought us to where we are today, with a deeper understanding of both
ingredient chemistries and the skin, leading to the most sophisticated
products ever,” notes Karen Doskow, industry manager for consumer
products research at Kline.
Unsurprisingly, as the vanity markets grow ever more
competitive, innovation holds the greatest advantage for staying ahead
of the game. In fact, 2010, promises a new landscape, one permanently
altered by changes in consumer attitudes – innovation and resilience will
be the hallmark of what lies ahead.
Around the world a global lifestyle has emerged, one that stresses
spiritual and physical wellness and well being, with the consumers in
affluent communities wanting to not only look better, but feel better as
well.
“In 2010, consumers will be able to enhance their mood through make-
up and skincare, going beyond aromatherapy and simple use of scent,”
044
Dr Roberto Viel (left)
and Dr Maurizio Viel
Matrimonial
makeovers
In a survey of 512 engaged women and
509 prospective grooms released on
December 9, 2009, more than half the
brides interviewed were considering an
aesthetic treatment prior to their weddings,
largely to look good in the photographs.
n 39 per cent of the men were also
considering procedures, often citing
a desire to be more appealing to their
intendeds.
n 11 per cent of the women and nine
per cent of the men who took part in
the research had already had some
work done.
The most popular procedures
considered by women were:
Botox – 68 per cent
Teeth Whitening – 62 per cent
Liposuction – 55 per cent
Breast Augmentation – 47 per cent
Face plumpers – 43 per cent
The most popular procedures
considered by men were:
Veneers – 78 per cent
Botox – 62 per cent
Hair Plugs – 41 per cent
Liposuction – 33 per cent
Chest (mobs) Reduction – 25 per cent
 Source: goodsurgeonguide.co.uk
says Nica Lewis, director of Mintel Beauty Innovation, of a trend her
company is dubbing “Mood Beauty”, a new space where psychology and
well-being fuse with beauty products by offering psychological benefits
and ingredients that act on people’s neurotransmitters.
There are now multiple tools to help people age gracefully. In addition
to a fresh crop of skincare products, the field of cosmetic procedures, both
surgical and non-surgical, have made looking young not only less painful,
but also more affordable. When Botox hit the market, it revolutionised
the field by offering a relatively pain free option for keeping the years
off. Other injections, including fillers like Restylane and Juvederm, soon
stepped in to add another dimension to the cosmetic business and have
now become de rigueur for the youth obsessed.
However, financial worries did see consumers postponing procedures,
and many providers posted a drop in business due to the poor financial
climate, according to Millennium Research Group, a medical technology
market researcher. The almost US$1.2 billion global facial injectable
market recorded a five per cent drop in 2009 compared to 2008, but the
market is expected to begin to recover this year, and by 2014 to return to
the strong pre-recession growth rates of more than 15 per cent growth.
In the United States, cosmetic surgery procedures posted a major decline,
contracting to 1,669,026 in 2008 from 1,901,049 in 2000; while minimally
invasive procedures (including peels, laser treatments and fillers) nearly
doubled over that time to almost 10.5 million.
“Understanding the ageing process has revolutionised the treatments

George Clooney in 2006 and in 2009
The masculine
mind
In a report dated November 17, 2009, a
study of more than 3,000 men in the UK
by goodsurgeonguide.co.uk, the UK’s only
review and recommendation website for
cosmetic practitioners and clinics, discovered
that the number of men undergoing cosmetic
surgery had increased by 82 per cent since
January of the same year.
Additionally, 64 per cent of those
surveyed would consider cosmetic surgery;
n 21 per cent admitted to having had
Botox or dermal fillers to smooth out the
skin on their face.
n 91 per cent admitted that the increase in
celebrity men having procedures
influenced them.
n Unsurprisingly, men between the ages of
20 and 35 were most open to the idea
of cosmetic surgery.
in rejuvenation and cosmetic dermatology,” says Tanya Kormeili, a
dermatologist and a clinical professor in dermatology at the University
of California in Los Angeles and a contributor to New York-based
Pierce Mattie’s beauty trend forecast. “The new thinking in cosmetic
dermatology prevents deep wrinkles long before they form. Hence, Botox
is now used at the onset of wrinkles, prophylactically, to relax the very
muscles that cause deep wrinkles over time.”
In fact, many consumers no longer view ‘looking young’ as a luxury
for the few but see it as a necessity, especially in a difficult job market
where competition for slots is fierce.
“We did notice a drop in the first part of 2009, but it bounced right
back,” says Cap Lesesne, plastic surgeon and the founder of New York
City-based International Cosmetic Surgery, where about 30 per cent of
the clientele is from abroad. Interestingly, Lesesne created a new line of
cosmetics, available online and at Saks Fifth Avenue department stores,
business
because Saks had suggested he develop a more medical-based product.
“People still need to have work done and it is a very, very competitive
world. They need to look good.”
Lesesne’s experience is echoed by Maurizio Viel and Roberto Viel, who
created a targeted line of skincare products and head the London Centre
for Aesthetic Surgery, which has offices in London and Dubai. “At the
worst point of the global crisis, in November 2008, when markets were at
rock bottom, we saw more injectables being requested and surgery sales
were relatively low. One year on, the demand for surgery is back again in
both London and Dubai,” says Maurizio, noting that many of the centre’s
patients opt for more natural injections, where an individual’s own blood
or fat is harvested for the procedure.
“The public wants something that has essentially no down time, that
has maximum improvement, that is non-invasive, that has no discomfort
and that has no cost,” cautions Dr Robert Singer of San Diego. “They
want magic. That magic pill doesn’t exist.”
045
agriculture

Bio fuel Ferrari F430

046
Food
feed
or
fuel
The versatility of corn as a foodstuff,
sweetener, livestock feed and biofuel has
dramatically increased the demand for
this affordable, sustainable and global
agricultural product.

Written by
Joanne Molina

047
agriculture

Who could have predicted that the strange grain

introduced to European settlers by the indigenous
people of the Americas would shape the economic and human history of
major usages – and the source of most of the contemporary controversy
surrounding the crop – fall into the categories of feed, biofuel and corn
syrup. A majority of the United States’ corn production remains devoted
the New World – and still play a prominent role in the 21st century as an to livestock feed – about 45 per cent of it during the 2007-2008 season,
important resource for global economic development? according to the Nebraska Corn Board (NCB). The sheer volume of
The exponential spread and usage of corn, its contemporary ubiquity above-ground (or epigeous) mass contained in a corn plant as opposed
as a commercial crop debated but nonetheless very real, has taken it from to other cereal grains has made it one of the first choices for silage, a
being the staple food of Native Americans to, by weight, the most heavily fodder that is produced by the harvesting and processing of the entire
cultivated grain in the world. Its popularity as a crop, as well as the plant. It is this same preference by the livestock industries that has put
concerns given rise to by that popularity, is largely due to its commercial corn-for-fodder at odds, by many accounts, with corn-for-ethanol. While
flexibility: corn has gone beyond its initial usage as a food grain to also the NCB’s 2007-2008 statistics showed that the percentage of domestic
become one of the world’s most relied-upon sweeteners, livestock feeds corn used for ethanol was only a little over half the amount used for feed,
and fuel sources. demand for ethanol has grown
While it became a global crop exponentially since 2000 and
centuries ago, corn – or maize, its factors such as a federally mandated
more exact name – is traditionally ethanol production capacity goal of
an American crop. However, 15 billion gallons by 2015 will only
drastically increased demand, serve to spur that increase.
particularly for usage in biofuel, has
spurred production worldwide. In This trend has put the livestock
2007, the United States contributed industry up in arms due to an
almost half of worldwide increase in the price of the corn they
production with more than 300 use to feed their animals. As corn
million tonnes, according to the farmers prepared to take advantage
Food & Agricultural Organisation of a seller’s market in 2008, livestock
of the United Nations (FAO). In the farmers – particularly those
same report, China was a distant raising pigs, which often eat a diet
second, producing about half that consisting almost entirely of corn
amount, with South American and – felt the pinch of feed costs, often
European nations producing only to the tune of tens of dollars per
comparatively fractional amounts animal. However, the overall supply
of the crop. According to the United of corn has also been put into flux

Dow AgroSciences
States Department of Agriculture, by demand. David Lehman, of
production of corn in Saudi Arabia the Chicago Mercantile Exchange
Rick Tolman, CEO of
was 90,000 metric tonnes in 2009 – Group, explained in an interview
the National Corn
45 per cent higher than production that same year that “[ethanol] is
Growers Association
in 2000 and about 22 times more a new demand factor in the corn
than what was produced in 1999. market… It’s doubled, in terms
of its percentage of our corn use in the past two years. However, corn
Corn’s current particular importance can be further emphasised by production is increasing very rapidly as well. Our corn production in the “Thanks to
a comparison to the FAO’s wheat production rankings in the same year, last year [2007] was over 13 billion bushels, and that was up from about
where China ranked first in worldwide production and yielded roughly 11 billion the year before.” technology on
twice the amount of wheat as the US. Yet it is also notable that China still Tolman adds: “Thanks to technology on the farm and in the seed, the the farm and in
produced more corn in that year, by weight, than it did wheat. corn industry has been able to achieve a steady upward production trend the seed, the corn
While some of its popularity as a crop may be attributable to historical per acre, while at the same time reducing inputs and environmental
precedent, a more likely and pragmatic cause is corn’s reliability as a impacts per pound of corn.” industry has been
profitable farming endeavour and an agricultural product headed out to able to achieve
a diversified, largely stable market. As Rick Tolman, CEO of the National The ‘technology in the seed’ that Tolman refers to is agricultural a steady upward
Corn Growers Association, points out, a wide variety of businesses biotech – specifically the development of genetically modified organisms
and industries “stand to gain when we can increase production in an (GMOs). One of the industry’s success stories of the past decade in terms production
economically and environmentally sustainable fashion”. of acceptance, genetically modified corn is one of the few commercially trend per acre,
“Anything that can be made from oil or hydrocarbons can be made grown GMO crops. About 80 per cent of the corn grown in the United while at the same
from carbohydrates or plant material,” he says. In addition to its well- States is modified and maize is the only GMO crop grown commercially
known role as a cereal grain and its usage in the production of corn in the European Union, according to GMO Compass, which specialises time reducing
syrup and ethanol, corn – in particular corn starch – is also used in the in information on genetically modified products. inputs and
production of plastics and adhesives. A byproduct of wet-milled corn Despite being dwarfed by the amounts used for fuel and feed, the environmental
is frequently used by the biotech industry as a culture medium for the relatively small portion of the world’s corn used for direct consumption
growth of micro organisms. by humans is significant in that it mirrors the diversity shown by this impacts per
But despite its diversified applications, the fact remains that corn’s grain in its industrial uses. Maize’s introduction to Europe and its pound of corn.”
048

erstwhile colonies and trade routes during the 1600s has resulted in an
astonishingly widespread cultivation as a direct source of sustenance
across the globe. Relatively similar porridges made from the meal of
the grain can be found in kitchens in South America, the southeastern
United States, northern Italy, Romania and Africa. But it is inarguable
that corn has become even more ubiquitous as a foodstuff since taking
the form of corn syrup.
Corn syrup’s use as an alternative to cane sugar was spurred in the United
States largely because of the high price of sugar within a country with a
long history of sugar quotas. However, its popularity as a sugar alternative
worldwide is less arcane: its cost-controlling appeal for manufacturers and
businesses is coupled with its physical and chemical properties, which deter
unwanted crystallisation in food products and help retain both moisture
and freshness over a longer time during product shelf life. The fact that corn
syrup’s rise in consumption has run parallel and in conjunction with the
industrialised world’s increased consumption of heavily processed foods has
made it a flashpoint for arguments about public health, particularly obesity.
While it is true that corn syrup has found its way into a seemingly endless
array of products, the dietary and nutritional issues stemming from the
industrialised preparation of food are wide-ranging and complex, with no
one ingredient a catch-all culprit.
Dow AgroSciences
“Corn sweetener is metabolized in the body in the same manner as
any other sweetener and has not greater, nor no less role in causing
obesity than any other sweetener. Obesity is a serious issue in the
United States, but it has to do with consumption of too many calories,
not with corn sweetener per se,” Tolman argues.
“This is a marketing issue, not a metabolic issue,” stated David
Klurfeld, national programme leader for human nutrition in US
Department of agriculture’s Agricultural Research Service and editor of
the June 2009 Journal of Nutrition supplement, The State of the Science
on Dietary Sweeteners Containing Fructose. “The real issue is not high
fructose corn syrup. It’s that we’ve forgotten what a real serving size is.
We have to eat less of everything.”
In a sense, the dietary controversy surrounding a seemingly
mundane industrial sweetener is a reflection of the socio-economic
and technological questions surrounding corn in general. Its almost
unmatched flexibility as a crop has given rise to new sets of issues
regarding supply, technology and investment and also cemented its
popularity in the contemporary global market.
How that real and growing demand plays out over time will reveal
much about the future of a world economy where populations and
economies, food and fuel are becoming evermore intertwined and
interdependent.
049
franchising

Medical intervention
Advances in technology have facilitated the globalisation
of medical diagnostics, treatment and expertise. Is the
franchising of top hospital ‘brands’ the next trend in
expanding quality healthcare across the world?

written by lisa vincenti

050
Catherina Hospital, Eindhoven, The
Netherlands by Philips Healthcare

051
franchising

Millions across the globe recog-

nise and seek out the golden arches of McDonalds, assured
of a familiar taste. Starbucks, the world’s largest coffee shop
chain, has loyal customers in 49 countries who’d sooner give
up food than forego a grande caffè latte in the morning.
Even hair salon Toni & Guy has operations in 41 countries.
These super-brands got to where they are by franchising their
businesses.
But is it possible to import the franchise model, one typically
reserved for fast-food chains and more mundane services,
to the proliferation of cutting-edge medicine? The scenario
is so uncommon and complicated that few even label such
expansion efforts by healthcare facilities as a ‘franchise’ by
normally calling them ‘branches’. The Harvard Health Policy
Review was so reluctant to apply the label to the healthcare
field because, according to the term’s strict definitions, money
is at the heart and soul of the matter and “financial gain should
not be the sole goal of [healthcare] providers, patients or the
coordinating agencies”.
The concept of a medical facility expanding to new locales
is a well-established practice. For example, MD Anderson, a
renowned Texas cancer centre, has locations throughout the
Houston area and has expanded to neighbouring states, as has
the Maya Clinic, which now has facilities in three states. Quest
Diagnostics, which provides half of the laboratory testing
services in the United States, also operates in such diverse
locations as Canada, Brazil, Mexico, India, Belgium, France
and Britain.
Exchange and educational programmes have long been
a recognised medical practise for improving healthcare,
especially in remote locations. Associations among hospitals,
such as the relationship between Methodist International and
Emaar Healthcare in Dubai, and state-of-the-art telemedicine
Dr Cosgrove in the operation theatre
technology is designed to provide top quality care in previously
under-served areas.

However, the establishment of an arm of a well-known
medical facility across international borders is still a relatively
uncommon concept. When Ohio-based Cleveland Clinic
announced plans to open a US$2 billion-plus facility on the
newly created Sowwah Island in Abu Dhabi, it was certainly
something new – and an experiment that will be watched with
interest around the world.
“No other academic medical centre from America has ever
done this before,” Cleveland Clinic chief executive officer
Delos M Cosgrove, MD, told THINK. “I’m incredibly excited
about this. American medical knowledge has been held in
significant esteem and we are trying to begin to share that
intellectual capital. The United Arab Emirates is a developing
country that has not had a strong academic background and it
has not trained a lot of medical professionals. They want our
intellectual capital: they want to know how to build a hospital,
how to staff it and how to measure quality. It wants to jump
start its medical healthcare system.”
Although the term ‘franchising’ has been noticeably absent in
the discussions about this association, when an outsider finances
the venture, in this case Mubadala, a government investment
vehicle in Abu Dhabi, it is obvious what this venture is.
and economic development,” states Dominic Montagu, an
assistant professor of epidemiology and biostatistics at the
Exchange and University of California, San Francisco.
Franchising healthcare is certainly an area worth
educational consideration and has been done on a smaller scale in places
programmes like India. One of the pioneers at the vanguard of this new
frontier is the Apollo Hospitals Group, founded in the early
have long been 1980s by Dr Pratap C Reddy, who in three years, along with his
a recognised four daughters, doubled the group’s capacity by franchising.
At the same time, the Chennai-based company went after
medical practise a chunk of India’s booming primary healthcare market by
building 250 franchised clinics. Today, Apollo is one of the
for improving largest private healthcare providers in the world.
healthcare, especially
But the Cleveland Clinic, unlike Apollo, has a long history
in remote locations. reaching back almost a century and has an international
reputation to match. Like its counterpart in the United States,
“As governments of developing countries fall short of Cleveland Clinic Abu Dhabi (CCAD) will be a physician-led
providing widespread access to care, and traditional charity- medical facility served by North American board-certified
focused non-governmental organisations offer limited or physicians and right from the start the new hospital promises
temporary solutions, the private sector presents an opportunity state-of-the-art treatment that will be designed to take advantage
for sustainable scale-up of healthcare services alongside social of the latest technologies in surgery, imaging, telemedicine and

052

1. Siemens operating room of the future
2. Philips computer tomographic imaging
3. Acuson S2000 by Siemens
4. X-ray technology by Siemens
electronic medical records. But can the clinic’s business model
succeed and culture be duplicated abroad?
Long ranked as one of the United States’ top medical
institutions, especially rated for its cardiac medicine and
cardiac surgery, the Cleveland Clinic has long been a preferred
destination for patients from all over the world. However, it is
more than just a hospital at the forefront of medical treatment,
it is a unique business model, one which pays physicians a
salary and fosters a multi-disciplinary approach to healthcare,
and is seen by many as a highly efficient and effective solution
to the ever ballooning cost of medical care.
The Cleveland and Mayo Clinics are the two largest group
practices in the world, where doctors are paid the same salary
every month regardless of whether they perform one surgery or 20.
At most US hospitals, surgeons and doctors work autonomously
and independently of one another, the result for patients is often
extra testing, unnecessary procedures, additional red tape and
little collaboration. Even the clinics’ non-medical practices are
designed to improve outcomes for patients – electronic medical
records let patients upload their health information, such as
weight-loss or blood sugar data, from devices at home.
Cleveland Clinic’s Cosgrove says he hopes the new hospital
1.
Siemens press picture
4.
will establish the clinic as the first US healthcare enterprise
to emerge as a worldwide brand on a par with the Solomon.
Guggenheim Museum in New York or the Louvre in Paris,
both of which have expanded to other parts of the globe.
The groundwork to expand the Cleveland Clinic’s international
presence has already begun. In 2006, the company opened
an outpatient branch in Canada, and has signed a contract
to manage a cardiac centre in Vienna, Austria. In the Middle
East, Cleveland Clinic has managed the Sheikh Khalifa Medical
City, a network of facilities in Abu Dhabi. The magnitude of
the Cleveland Clinic Abu Dhabi undertaking, however, dwarfs
Medical City, with a sprawling 2.2 million-square-foot facility,
designed to be “five years ahead of state of the art”.
“The goal of the project was to create a different
approach to healthcare: a de-institutionalising and blurring
of the lines between hospital and hospitality,” says Alexander
Wu, a principal with HDR, the architect commissioned for the
facility. From the sounds of it, Cleveland Clinic Abu Dhabi
could do for the Cleveland Clinic brand what Bilbao has
done for the Guggenheim, by giving it a new lustre, but more
importantly a highly visible track record globally.
2.
3.
“There have been other US healthcare institutions that
expanded into foreign regions, but this is unparalleled,”
Cosgrove notes, adding that Cleveland Clinic has been treating
patients from the region for over 30 years, since Khalid bin
Abdul Aziz, King of Saudi Arabia came to the Cleveland
Clinic for a heart operation in the 1970s. Many from the Gulf
region followed, including HH Sheikh Zayed who in 2000
had a successful operation and stayed in Cleveland for several
weeks. “Cleveland Clinic Abu Dhabi will be led and staffed
by physicians who are Western trained and board certified,
offering the latest technologies to create an environment that
combines excellent amenities with world-class care. This is a
true extension of the Cleveland Clinic model – addressing the
needs of patients who have traditionally had to travel great
distances for specialty services.”
Although Cosgrove says that the clinic has received enquiries
from 70 different countries looking for clinical capabilities, no
new projects are in the works at the moment. “You have to
manage one well, it takes a substantial amount of effort to do
that well.”
With such a prestigious reputation at stake, it might be
sensible to move slowly.
053
THINK Health

054

The mounting
costs as a result of
diabetes present a
staggering toll on
global economies
written by lisa vincenti
Deadly
Threat
“In two decades, the total number of people with diabetes is
likely to swell to nearly 440 million. To put that in context, that’s more
people than the current population of North America,” says president of
the International Diabetes Federation (IDF) Prof. Jean Claude Mbanya.
The latest data published by the IDF in its Diabetes Atlas shows the
disease is now far more prevalent than just 10 years ago. A condition in
which the body either does not produce enough or does not properly
respond to insulin, a hormone produced in the pancreas, diabetes causes
a range of health complications from blindness to amputation. Each year,
seven million people will develop diabetes and 3.8 million people a year
are killed by complications arising from it, which is similar in magnitude
to HIV/AIDS. In 2000, the estimated global prevalence of diabetes was
151 million, but it has now spiked to around 285 million, representing 6.4
per cent of the world’s adult population, with a prediction that by 2030
the number of people with diabetes will soar to 438 million.
LIFESTYLES IN TRANSITION
Diabetes is a truly democratic disease: its reach is universal, cutting
across cultural, social, political and economic boundaries. So while
Health
many erroneously see this as a condition of higher income nations and
Westernised lifestyles, the major burden of the disease is born by low
and middle-income countries, where access to treatment is limited and
expensive.
A complex interplay of genetic, social and environmental factors
is driving the global explosion in diabetes. In more affluent societies,
lifestyle choices significantly increase an individual’s risk of developing
diabetes. Obesity, smoking, lack of physical activity and poor diet all
contribute to this increased risk. Obesity is one of the highest risk factors
for developing diabetes and as experts watch the world’s waistlines grow
in both developed and developing nations, concern mounts.
While it’s true that many affluent nations, notably the United States,
have adopted some unhealthy habits in the form of poor dietary choices
and a sedentary lifestyle, diabetes is very much associated with poverty.
For low and middle-income countries, economic advancement often
leads to changes in the living environment, which results in altered diet
and activity levels within a generation or two. Consequently, people can
develop diabetes despite relatively low gains in weight. In the developed
world, diabetes is most common among the poorest communities.
055
Health

Wherever poverty drives families to low cost-per-calorie foods and

packaged drinks, diabetes thrives.
“This epidemic is responsible for so much suffering and loss of life,
yet so little is being done to tackle it,” says Mbanya. “Where growing
economies like India and China lead, many will soon follow. Doing
nothing in the face of the epidemic will place significant stress on the
economic development of many countries and will jeopardise the
Millennium Development Goals.”

Economics of Disease
In fact, the loss of life and human suffering aside, diabetes costs the world
billions in not only healthcare expenditures, but also lost productivity.
The World Economic Forum 2009 identified chronic diseases as one
of the most significant risks facing the global economy, exceeded only
by the risks posed by sudden oil/gas price rises, retrenchment from
globalisation, asset price collapse and a slowing of the Chinese economy.
According to the American Diabetes Association (ADA), the US loses
US$58 billion a year from lost earnings due to lost work days, restricted
activity days, low productivity at work, mortality and permanent
disabilities resulting from the disease.
A person with Type 2 diabetes is two to four times more likely to get
cardiovascular disease and 80 per cent of people with diabetes will die
from it, resulting in a loss of 12-14 years. Medical costs for a diabetic are
two to five times higher than for those of a person without it, according
to the IDF. The World Health Organisation (WHO) estimates that up to
15 per cent of annual healthcare budgets are spent on diabetes-related
illnesses.
Prof. Jean Claude Mbanya
The WHO predicted net losses in national income from diabetes and
cardiovascular disease of US$557.7 billion in China, US$303.2 billion
in the Russian Federation, US$336.6 billion in India, US$49.2 billion in spend a staggering US$198 billion, or 52.7 per cent of global expenditure,
Brazil, between 2005 and 2015. The figures are staggering. on diabetes this year, while India, the country with the largest number
“In 25 years, there’s going to be this convergence of the population of people living with diabetes, will pay out a mere US$2.8 billion, or less prevalence* (%) estimates of
getting older, but also many people having had diabetes for a long period than one per cent of the global total. It is obvious that the financial burden diabetes (20-79 years) by
region, 2010 and 2030
of time, and that will lead to higher costs,” says Elbert S Huang, who is in many developing nations rests on the individual. Those living in low-
part of a University of Chicago’s diabetes research team. “Duration of income countries shoulder a larger share of the expense because of poorly Prevalence (%)
diabetes is as important a predictor of complications as glucose.” organised systems of medical care insurance or a lack of public services. 14

Earlier onset and a longer duration directly result in both an increased
cost of treating diabetes and lowered productivity for each person
with the disease.
Diabetes imposes a large economic burden on the
individual, national healthcare system and economy.
Global healthcare expenditures to treat and prevent
diabetes and its complications will top US$376
In Latin America, for instance, families pay between 40 per cent and 60 12
per cent of medical care expenditures from their own pockets, the IDF
10
states. In the poorest countries, people with diabetes and their families
bear almost the entire cost of the medical care. So as global employment 8
shrinks, fewer people have the resources to pay for their care. 6
“The world needs to invest in integrated health systems that can
diagnose, treat, manage and prevent diabetes,” says Professor Nigel Unwin, 4

billion in 2010, and are predicted to jump to nearly a medical officer with the diabetes unit at the WHO. “Governments also 2
US$490 billion in 2030. need to invest in actions outside the formal health sector, particularly
0
The United States alone is projected to in promoting healthier diets and physical activity, to reduce obesity and afr wp saca eur sea mena nac
the risk of Type 2 diabetes. Without effective prevention, diabetes will 2010 2030

overwhelm health systems and hinder economic growth.” *comparative prevalence

In fact, an orchestrated effort that includes businesses, doctors and IDF Diabetes Atlas 4th Edition, International Diabetes Federation, 2009

government is likely to be the only way to tackle the epidemic. Because

diabetes is partly a lifestyle disease, global citizens need to not only learn
of the risk factors associated with the disease, but also have incentives
to make changes in their daily lives to reduce their risk of developing it.
“The epidemic represents nothing short of a global health emergency,”
says IDF President Mbanya. “It is alarming that world leaders stand by
while the diabetes fuse slowly burns. The serious impact on families,
countries and economies continues with little resistance. Governments,
aid agencies and the international community must take concerted action
to defuse the threat now, before the diabetes time bomb explodes.”

056
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Sports

058
Sporting Chance
Two international charities have worked tirelessly to
show the healing and redemptive powers of sport
Written by Steve Hill

059
Sports
Johann Koss may have become an international
icon after winning four gold medals as an Olympic speed skater, but the
moment for him that defines the real value of sport to society came far
from the competitive stage, in the unlikely setting of Eritrea.
The Norwegian was visiting this impoverished country in 1993 as an
Athlete Ambassador for Olympic Aid, a fundraising organisation put
together by the committee preparing for the Lillehammer Winter Games
the following year.
Koss stumbled upon a group of children admiring posters of Eritrean
war martyrs and started to talk to them before a small boy arrived and
grabbed their attention instead.
“I was intrigued,” he says, “so I asked this boy why all the kids ran toward
him. He pointed to his long sleeved shirt... and as we were speaking, he took
off the shirt, rolled it up and tied it into a ball. The boys immediately lost
interest in our conversation, as well as the posters, and began kicking the
‘ball’ around. This experience highlighted for me the power of sport.
“I began to wonder: what if we used sport to show children that
courage, perseverance and dedication will make them strong – not guns?
060
That fairness, respect for one’s opponent and negotiation are the route
to solving conflicts, not violence? That athletes – not soldiers – could
become their heroes and role models? That looking after yourself and one
another is the path to a better life?”
Koss later challenged fellow athletes and the public to donate money
for each gold medal he won, raising US$18 million that was used to fund
a range of programmes, including building a hospital in Sarajevo and
schools in Eritrea.
Olympic Aid, later to become known as Right To Play, has since evolved
from a fundraising vehicle to become a Non-Governmental Organisation
that uses sport and play programmes to improve health, foster peace
among children and communities, and develop life skills in 23 countries
in Asia, Africa, the Middle East and South America.
With Koss at the helm as president and CEO, it trains local community
leaders to deliver projects that reach almost 700,000 children a week, an
increase of almost 100,000 on 2008.
And these schemes, Koss says, have proved to be a powerful platform
for change. “We have seen how sport serves as an effective tool to combat Special Olympics gold medals.

poverty by reducing the risk of diseases that intensify poverty. We know
that sport can reduce stigma, increase self-esteem and improve social
skills, leading to increased employment and lower levels of poverty and
hunger. Sport is helping us work toward the goal of universal primary
education by keeping children in schools and improving academic
achievement,” he says.
“Our programmes also promote gender equality and empower girls
and women, building their capacity as leaders. And we’ve seen how sport
can help combat HIV and AIDS by improving education and access to
health information and by reducing stigma and discrimination. All of
these are success stories for Right To Play, but more importantly for the
communities who have welcomed and taken ownership of our sport and
play programmes.”
Koss, who will be assistant coach for the Norwegian speed-skating
team at the Winter Olympics in Vancouver from February 12-28, is
particularly proud of Junior Leader projects, which aim to give roles of
responsibility to youths between the ages of eight and 17. “These young
leaders develop important life skills like confidence and self-esteem and
build knowledge that will allow them to prosper in the future,” he says.
“We have seen former coaches and leaders go on to become role models
and true leaders in their communities.”
Using sport as a vehicle for change is also central to the
Olympic
Revenues
Construction work and preparations to
welcome the world are in top gear with
less than 1,000 days to go before London
hosts the Summer Olympics and Paralympic
Games from July 27 – August 12, 2012.
Latest projected final constructions costs
for the event are at US$11.95 billion,
according to official British Government
figures, while the overall budget remains at
US$15.4 billion.
The Olympics have plenty of domestic
detractors in the UK, but the event is having
a significant economic effect, helping drive
an ambitious regeneration programme and
the construction of the largest new urban
park in Europe for 150 years.
More than 3,300 people are currently
working on the Olympic Park site,
17 per cent of whom were unemployed
beforehand. And it is estimated that the
Games will help generate US$3.3 billion
in tourism gains.
The word legacy is never far from the
lips of London officials who stress that the
Olympic effect will be felt for generations
to come with five facilities built especially
for the event having a long-term future as
permanent sports venues.
phenomenon that is Special Olympics, whose chairman and CEO is
Tim Shriver. Demand is at an all-time high – and continuing to grow
exponentially – for an organisation that has profoundly changed attitudes
towards people with intellectual disabilities.
Since taking charge in 1996, Shriver has recruited more than two
million athletes around the world to serve over three million people in
175 countries.
He has also worked with world leaders such as Nelson Mandela and
Bill Clinton to advance the growth of the Special Olympics mission,
and spearheaded programmes in developing or war-torn countries
such as Iraq, Afghanistan and Bosnia Herzegovina. Other initiatives
include Healthy Athletes, which has become the world’s largest public
health screening and education programme for people with intellectual
disabilities, and Unified Sports, which promotes acceptance and inclusion
across the globe.
Special Olympics is a year-round community-based movement that
empowers people through sport and is totally unrelated to Paralympism,
which provides an elite sporting stage for competitors with physical
disabilities. Shriver is well versed in finding the right words to detail
these differences, but maintains that the most important aspect of his
job is the ongoing need to work on behalf of those who find themselves
marginalised or suffering from prejudice because of their learning
difficulties.
061
Sports
“There is still a great amount of work to do in continuing to shine a
light on the gift and the value that people with an intellectual disability
can bring to society... when they can be teachers to non-disabled persons,
teaching us lessons about tolerance, openness and caring,” Shriver says.
Sport has proved to be the perfect tool for opening doors and making
changes. “There are prevailing attitudes towards our population that
associates people with intellectual disabilities with people who have no
skill or no value,” he continues.
“But sport can change the identity of a person... in Special Olympics,
you see only a footballer, a swimmer or a runner and suddenly that
becomes a catalytic moment when any prejudice is taken away and
people change to become believers. Our athletes are given the chance to
redefine who they are in a world that doubts them and become valuable
citizens in a world open to possibilities.”
Special Olympics has certainly come a long way since 1962 when
Shriver’s mother, Eunice Kennedy Shriver, launched a summer camp
at her own home for children with intellectual disabilities. The event
was such a success that momentum quickly grew, eventually leading
to the organisation of the first Special Olympics in Chicago in 1968
involving around 1,000 contestants in swimming and track and
field competitions.
Fast forward to 2007 and Shanghai hosted the 12th Special Olympics
World Summer Games, attracting more than 7,500 athletes from 164
062
“There is still a great
amount of work to
do in continuing to
shine a light on the
gift and the value
that people with an
intellectual disability
can bring to
society... when they
can be teachers to
non-disabled
persons, teaching us
lessons about
tolerance, openness
and caring.”

Tim Shriver CEO & Chairman of Special Olympics
countries. These huge gatherings, along with daily activities in villages,
towns and cities across the world, demonstrate the reach of a movement
that now boasts offices in cities as wide ranging as Beijing, Delhi,
Johannesburg, Cairo and Riyadh.
These are worrying times for many major organisations because of
the ongoing global economic slowdown, but Shriver is determined that
Special Olympics funding will not be dramatically hit as a result. “It is a
very tough environment and we’re no different from anyone else in being
affected. But I think we will survive and recover quickly because people
are hungry for what we offer,” he says.
“Arm twisting can only go so far, if you have a deep relationship with
a sponsor, one that has been built year-on-year and is successful and
makes them feel that they are investing in their own future... that’s not a
duty or an obligation to remain involved. We are very strong with these
companies and are part of the fabric.”
One of Shriver’s targets for the next 10 years is to increase the amount of
unified sport being played. “I would like to see Special Olympics in every
school around the world, which I realise is not a mild goal,” he says. “I
believe strongly that it should be a formative experience for kids growing
up wherever they are, we should be exposing children to exceptionality
and making them realise that they don’t need to fear difference.”
Johann Koss and Tim Shriver are among the speakers at the Global
Competitiveness Forum 2010, taking place at The Kingdom Centre –
Four Seasons Hotel, Riyadh, from January 24-26.
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www.motivatepublishing.com/corporatepublishing 063
yachting

tactical sailing
As the world’s largest private yacht readies to
launch, new values embraced as a result of the
economic downturn inspire the sustainable
luxury of the innovative Wally-HermÈs Yacht
written by lisa vincenti

In the early years of the 21st century, all that mattered was the wow-
factor, from mansions to art collections to mega-yachts, as the world’s
super-rich sought to outdo one another. But consumer attitudes, even
among the wealthiest, are changing, as a more eco-conscious and soulful
spirit emerges.
A case in point is the yachting world. So even as the world’s largest
private yacht, the Eclipse – replete with at least two helicopter pads, several
hot tubs, one pool, three launch boats, a private submarine and a missile-
detection system, readies to launch later this year, the shipyards of Monaco-
based Wally, in conjunction with Hermès, is dreaming up a new model of
the mega-yacht, one that has sustainability at its core, without any sacrifice
to amenities. Welcome to WHY, the Wally-Hermès Yacht.
“There is a dramatic sensitivity for the sake of reputation – you don’t
want to be seen as a conspicuous luxury consumer,” says Milton Pedraza,
CEO of the Luxury Institute, which is based in New York. “There has also
been a shift to a more modest footprint in terms of consumption and
social responsibility.”
The growth of the super yachts took off in the past decade as the new
wealthy aspired to live the life of the mega-rich, and yacht sizes grew to
match. Today, industry players estimate about 5,000 super yachts (those
over 24 metres in length) are on the water. In 2008, the last year for which
data is available, 241 superyachts were built at an average cost of US$31
million, with each taking between two and four years to build, according
to the (SUPER)Yachting Index by Camper & Nicholsons, an international
yacht broker.

“The industry is not as busy as yacht builders would like due to the
global downturn in economic terms,” says Michael Jordan, who has been
involved in the design of numerous super yachts. “There is a shift in
global purchasing power away from the 95-metre-plus super yachts to
more 37-metre to 45-metre boats. The running costs are a little lighter!
But the world’s super-rich who are not affected quite as much on costs
are still lining up to have the 150-metre-plus yachts built at places like
Lurssens in Germany.”
According to Jordan, many people are choosing to remodel their existing
yachts instead of purchasing new ones. “Yards such as Pendennis Shipyard
in Cornwall, UK, have full order books but mainly for refurbishment work.
This is where clients who really would like to have a new build but are
finding it a pinch just have their old yacht remodelled,” he says.

064
065
yachting
Across the board, spending habits have changed with frivolous luxury
being replaced by more thoughtful purchases.
“It is a sombre environment out there in terms of luxury because of
the lack of money and the failure of the luxury industry to deliver on
what consumers now see as the fundamentals,” Jordan says, adding that
superior quality, craftsmanship, design, exclusivity, brand heritage and
customer service is what will make the difference going forward. This is
where the Parisian house of Hermès steps in.
Hermès, a fashion label that achieved cult status with its Birkin bag, made
waves a couple of years ago when it unveiled its cross-branded helicopter
complete with Hermès fixtures, such as calf-leather seats, leather-trimmed
controls and a Hermès canvas in the interior. The Parisian atelier followed
this by creating a customised Veyron, a limited edition sports car by Bugatti.
“When we met, in autumn 2007, Luca Bassani Antivari [the president
of Wally] had thought about asking Hermès to accessorise the interior of
one of his boats,” says Pierre-Alexis Dumas, artistic director of Hermès.
“I was impressed by the daring of his projects. My instinct was to get on
board with him and go and seek out new territories in yacht design, but
I had no interest in speed.”
WHY is the embodiment of a new way of thinking and living, one where
the desire for simple, slower living and social consciousness go hand-
in-hand with sophisticated, cutting-edge design. It is a moving island,
developed with the latest and most advanced sustainable technologies,
without a sacrifice in amenities (a seawater swimming pool 25 metres
long and there is room for 12 guests to go jogging).
“We hope to open a new path, to offer a new lifestyle that is different,
serene, contemplative and respectful of the environment, moving slowly
on the water, combining the pleasure of sailing and absolute comfort,”
Dumas says.
The creators of WHY explored a new shape that speaks a different
vocabulary from traditional sharp-nosed vessels cutting through the open
seas. A revolutionary triangular shape, inspired by the cable-handling ships
066
The World’s top
Super yachts
Eclipse
The world’s largest private yacht, measuring
more than 170 metres, will hit the waters
this year. Owned by Russian tycoon Roman
Abramovich, this will be the crown-jewel of
his fleet of yachts.
Everest
This proposed giga-yacht, topping the charts
at 200 metres, would dwarf Eclipse, with
accommodation for 36 passengers and
guests consisting of 17 apartments and
an owners’ private penthouse suite on the
top deck. In addition, the yacht will have
an outside swimming pool with a cinema
arrangement, large gymnasium, sauna, steam
rooms and indoor cinema. With a suggested
price of more than US$500 million, the yacht
is expected to be finished in 2011.
Motor Yacht A
Created by Philippe Starck, the superstar
French designer, A is a deliberate slap
in the face to an industry known for its
used for geo-mining in the North Sea, gives WHY, measuring 58 metres classic conformity. Motor Yacht A, at 119
long and 38 metres wide, a completely different aspect from other yachts. metres, is a private yacht built for Andrey
“Today, we want comfort, slowness, depth,” Dumas says. “My Melnichenko, the 36-year-old Russian
inspiration is the Greek caique, roomy, generous and slow. This eulogy to billionaire industrialist, with a price tag of
slowness is demonstrated in such a magnificent way. A pared-down craft more than US$300 million.
with nothing superfluous about it.”
Dubai
WHY also delves into the core issues on the minds of everyone today, Holding the record for the world’s longest
and was crafted with sustainability at its core. It addresses the problem of yacht, Sheikh Mohamed Bin Rashid Al
consumption and features the most advanced sustainable technologies. Maktoum’s German-built yacht made waves
Eco-friendly features include the use of different sources of energy that are at 160 metres.
managed by a central computer. A diesel electric engine powers the yacht
and its 900-square-metre panels provides solar electricity and WHY will Rising Sun
also be equipped with a telescopic wind-turbine system. A retractable mast Larry Ellison, the founder of Oracle,
with a computer-operated sail is planned to be installed to produce at least reportedly sold half of this 138-metre yacht
30 per cent of energy needed to propel the luxury yacht. to friend David Geffen.
“We provide an answer in a field where clients are responsible for
setting an example, embracing a new ethic,” Dumas says. “What this Octopus
market needs is a boat designed with the environment in mind. This new Microsoft co-founder Paul Allen’s 127-
way of moving on water must give way to a new way of managing energy, metre Octopus is an expedition-like Land
its sources and uses, how to recycle it, etc. The same goes for the choice of Rover for the seas.
materials; we have to limit the effect on the environment.”
Luxury isn’t what it used to be. Conspicuous consumption is frowned
upon and greed has been replaced by a new frugality, according to
research on the spending habits of the wealthy. The luxury market’s
slowdown was partly driven by the super-wealthy’s curtailment of over-
the-top consumption. “It’s not that they don’t have the money – they’re Opposite page: Clockwise
being conservative right now,” Pedraza says. “There’s a lot of soul- Luca Bassani, President & CEO,
searching and a lot of experimenting. It’s a very turbulent period in the Wally; Pierre-Alexis Dumas,
minds of executives. In the next few years, I think we’re going to see some Artistic Director, Hermès; Gabriele
really dramatic innovations from people in the luxury industry.” Pezzini, Design Director; Mauro
With WHY, one example is already here. Sculli, Naval Architect, Wally.
 “The WHY yacht looks very unfamiliar x

but it remains on a human scale. Space is thex

greatest luxury on the sea”x

067
travel

The lap
of luxury
The Middle East is home to some
of the world’s hottest hotels;
check out the THINK guide to
the best before you check in
written by Ruby Rogers

This year numerous new properties are scheduled to open across the region,
most of which were planned in the boom period but still defy the current economic downturn.
Many Gulf-based architects and interior designers are involved with numerous new hotel
projects in Libya, Egypt, Tunisia and other parts of the MENA region, which have been less
severely hit by the world recession. While tourism fell by approximately 13 per cent region wide
in 2009, Bahrain, Jordan, Lebanon and Syria bucked the trend and reported positive growth rates.
The long awaited Asia-Asia hotel in the UAE is expected to open for business, boasting a
staggering 6,500 rooms. Its arrival might seem at odds with the global economic slowdown, but
research by hotelprojects.com reveals that more than 2,100 first class and luxury hotel projects
will be opened worldwide in the next 13 months, proving that tourism remains big business.
Across the Middle East, numerous new international chains and privately owned hotels are
adding to the momentum, setting new standards in design, architecture and hospitality. Giorgio
Armani has chosen to make his debut in the hospitality sector with the opening of the world’s
first Armani hotel in the region during the first quarter.
Meanwhile, the Italian design firm Missoni, best known for their knitwear, is to open their
first Middle East hotel in Kuwait in 2010, following the successful launch of their first hotel in
Edinburgh, Scotland last year.
Saudi Arabia has seen its tourism industry strengthen and, according to a recent study by
Business Monitor International, the Kingdom can expect six per cent growth annually until 2013,
with the total number of hotel rooms rising by 40 per cent over the next three years.
Swiss hotel chain Mövenpick has recently opened its doors in Mecca, Saudi Arabia, a city that
attracts millions of visitors every year. “The Holy City of Mecca is the most important destination
for Muslims around the world, and with over 4.5 million visitors during the Hajj and Umrah
season, we are confident that this new hotel will be a welcome addition to the city,” explains
general manager Omar Boujlid. The message is clear: the Kingdom, and indeed the entire region,
is open for business.

068
Six Senses Spa, Jordan

069
travel

Four Seasons
The legendary Four Seasons hotel chain is synonymous with comfort, Six Senses library, plus a pool with first class views of the hot spring
quality and reliability, but none more so than the Four Seasons Riyadh waterfall. For food, head to any one of the spa’s dining options, including 1. Mövenpick Hotel
in Saudi Arabia. Occupying the 30th to 48th floors of the impressive the sensational Panorama restaurant, which sits on a cliff top overlooking & Residence Hajar Tower
Kingdom Centre in the capital’s financial district, the Four Seasons the Dead Sea and offers front row seats to some stunning sunsets. 2. The Yas Hotel
features 249 generous guest rooms, including 32 suites and 20 long-stay At the top of your holiday agenda should be a visit to the stunning Six 3. Le Gray
residential suites with spectacular views over Riyadh. Senses Spa, which features 10 treatment rooms and a steam cave designed 4. Evason Ma’In Hot
Rooms at the Four Seasons boast all the amenities expected of a hotel to relax and rejuvenate even the most stressed out guest. Be warned, you Springs & Six Senses Spa
of this calibre including high-speed internet access and DVD player. The won’t want to leave.
marble bathrooms are equally well equipped with glass-enclosed showers
and large soaking bathtubs, the best way to unwind after a busy day. Book into: The Evason Ma’In Hot Springs & Six Senses Spa
If you venture away from your comfortable bedroom you will discover Where: Madaba, Jordan
the newly refurbished Four Seasons Health club, offering the very latest Why: The perfect place to retreat and relax
exercise equipment together with a whirlpool, cold plunge pool, sauna, Contact: +962 5 324 5500 or reservations-main@sixsenses.com
steam room and outdoor swimming pool. For more active guests there
are also two indoor squash courts, one racquetball court and two outside
tennis courts. The Yas Hotel
Location, location, location is what sets The Yas Hotel apart from its
Book into: The Four Seasons Riyadh competitors – it is built half on land and half on water overlooking the
Where: Riyadh, Saudi Arabia marina and the Formula One circuit race track. But that’s not all, this
Why: Comfort you can rely on newcomer to Abu Dhabi’s hotel scene is further distinguished by its
Contact: 966 (1) 211-5000 or www.fourseasons.com/riyadh futuristic design, an incredible grid-like structure that can be seen from
miles around and is said to resemble a fishing net.
Step inside and there are 499 contemporary rooms and suites from
Le Gray a spacious deluxe with floor to ceiling glass panels opening out onto
There’s a lot to love about Lebanon’s capital Beirut, which is determined to a private balcony, to a Presidential Suite offering terrace access, lap
shake off its troubled reputation and re-emerge as the jewel of the Middle pool, private elevator, full chef ’s kitchen and a dining room that can “Saudi Arabia
East. For starters, there is its enviable location – perched on a peninsula accommodate up to 16 people.
offering breathtaking views of the Mediterranean Sea and flanked by Relaxation is guaranteed with a visit to one of the rooftop swimming
has seen its
mountains. And then there is its rich history, excellent restaurants and pools or luxury spa featuring 10 private treatment rooms plus a sauna tourism
wealth of leisure activities, which range from water sports to winter skiing. and steam room. industry
Since October 2009, there has been another reason to love Beirut,
namely Le Gray, located in the historical heart of the chic Central District Book into: The Yas Hotel
strengthen
and said to be equally as stylish as the city itself. That may be a bold Where: Abu Dhabi, UAE and according
statement but judging by the cool modern decor of its 87 spacious suites Why: Its distinctive design inspired by a fishing net to a recent
backed by state-of-the-art technology including plasma televisions, Wi- Contact: +971 2 656 0000 or reservations@theyashotel.com
Fi and iPod docking stations, it is more than justified.
study by
So what can you expect when you book into Le Gray? Fresh fruit and Business
flowers delivered to your room daily, walk-in showers and baths, a choice Al Tarfa Desert Sanctuary Lodge & Spa Monitor
of eateries, including a rooftop restaurant offering spectacular views of No expense is spared at the Al Tarfa Lodge in Egypt; its rooms are
the city below, and if this isn’t enough, the PureGray Health Club and Spa individually designed, furnished and decorated, the swimming pool is
International,
offers a comprehensive range of stress-busting treatments. set on top of a sand dune and serviced by a terrace, and private dining can the Kingdom
be arranged amid the surrounding palm groves. What’s more, Al Tarfa can expect
Book into: Le Gray is Egypt’s first eco-friendly lodge, meaning that luxury comes without
Where: Beirut, Lebanon compromising your green ethics.
six per cent
Why: The stunning panoramic views while taking a dip in the rooftop The lodge is located in the heart of Egypt, surrounded by the greenery growth
swimming pool. of the tranquil Dakhla Oasis and set against the backdrop of the desert. annually until
Contact: +961 1 971 111 or reservations@legrey.com Built with local and natural materials using traditional techniques,
the hotel calls upon Saharan mud-brick architecture to create its 20
2013, with the
freestanding rooms and suites furnished with locally sourced products. total number
Evason Ma’In Hot Springs & Six Senses Spa Visitors are free to relax by the pool, indulge in the hotel spa or take of hotel
Prepare to be pampered like never before at the Evason Ma’In Hot part in cultural tours, guided walks, horse riding, 4x4 desert excursions
Springs & Six Senses Spa in Jordan, located 264 metres below sea level and camel rides. This is eco-tourism at its finest.
rooms rising
directly under one of the natural hot spring waterfalls that cascades by 40
into the main pool. Book into one of the resort’s 94 rooms and suites, Book into: Al Tarfa Lodge per cent over
which boast stunning views of the surrounding valley, and indulge in five- Where Dakhla Oasis, Egypt
star features such as butler service, pantry and living room with a games table. Why: Eco-friendly luxury
the next
Beyond your bedroom there is a fully equipped gym, well-stocked Contact: +2 092 9105 007 or info@altarfa.travel three years”
070
1 2
3 4

071
 The Four Seasons Hotels and Resorts, Riyadh

072
 travel

And still Al Tarfa Desert Sanctuary Lodge & Spa

to come…
Hotel Missoni Kuwait
Another fashion house to have dipped a toe
into the hotel market is Missoni, which has
already opened its doors in Edinburgh and
is set to entice travellers to Kuwait in 2010.
Missoni’s boutique hotel empire has been
brought about by a collaboration with Residor
Hotel Group and aims to cater to well-heeled
guests while embracing the distinctive creative
vision of Rosita Missoni – bold, brightly
coloured prints. Watch this space!

Book into: Hotel Missoni Kuwait

Where: Kuwait
Due to open: 2010
Why: Bold and beautiful
Contact: www.hotelmissoni.com

Palazzo Versace
Due to fling open its fashionable doors in
2011, the Palazzo Versace Dubai follows
in the footsteps of its successful sister hotel
on Australia’s Gold Coast, which opened in
2000 offering guests the chance to immerse
themselves in the luxurious world of Versace.
Dubai is home to the second of 15 Palazzo
Versace hotels and resorts slated to be built,
located on the banks of the Dubai Creek and
complete with its own private marina.
For those lucky enough to book into the
luxury designer resort there are 217 hotel
rooms and suites tastefully decorated with
Versace furniture and linen. Numerous
outdoor swimming and relaxation areas Qasr Al Sharq Mövenpick Hotel & Residence Hajar Tower
are scattered across the complex, together If you have ever dreamt of waking-up in a palace, then the Qasr Al Sharq Mövenpick has boosted its presence in Saudi Arabia with the opening of
with the Salus per Aquum Spa and Versace is the place for you. Pure gold, handpicked crystal and porcelain china, its newest property in the prestigious Hajar Tower in Makkah. Aiming to
Boutique showcasing the very latest home intricate mosaics, cultured marble and the finest works of art are just a few appeal to pilgrims and business travellers alike, the Italian-inspired décor,
and fashion collections. Three restaurants of the opulent features that have earned the Qasr Al Sharq its reputation together with a state-of-the-art business centre, satisfies the burgeoning
are set to serve the exclusive clientele for pure indulgence backed by outstanding service. expectations of its guests.
with everything from local to international The spa alone is enough reason to check into the hotel, which boasts Accommodation runs from deluxe rooms to royal suites depending on
delicacies. Jeddah’s only Aquamedic pool that pumps underwater jet streams how much cash you have to splash; all are equipped with HIWI internet
For those who want to linger for longer, specifically designed to massage and relax the body. There is also a fitness and a safe. Boasting 1,204 rooms in total, it’s not surprising that the hotel
there are also 169 private residences area, traditional Hammam, pool with a fully retractable glass roof, and a has five dining options to cater to diverse tastes. Among them are Al
complete with balcony, self-contained variety of healing and wellness treatments Naseem, the hotel’s main dining restaurant offering international and
kitchen, private rooftop terrace and dining Guests have a choice of 46 suites, including the extravagance of the Qasr Al local cuisines; Al Firdaous, which is able to seat up to 500 guests; and
area, plunge pool and private marina berth. Sharq Suite, which features two master bedrooms with ensuite dressing and Hajar, open during high season and serving up Arabic and international
Residents will also have access to the hotel’s bathrooms, private sitting room, office, dining room, fully fitted kitchen and favourites.
concierge and customer care staff, as well as in-suite spa. The hotel’s culinary offerings are also in a league of their own To build up an appetite, visitors can work out in the new fitness centre
the dining, leisure and spa facilities. and include the world famous Bice Italian restaurant, which has fantastic or relax in the steam room, sauna, Jacuzzi, Turkish bath or indoor
views of the Red Sea. What better way to enjoy exotic Saudi Arabia? swimming pool. The choice is yours.
Book into: Palazzo Versace
Due to Open: 2011 Book into: Qasr Al Sharq – a member of The Waldorf Astoria Collection Book into: Mövenpick Hotel & Residence
Where: Dubai, UAE Where: Jeddah, Saudi Arabia Where: Makkah, Saudi Arabia
Why: It’s Versace, need we say more? Why: Old style opulence and world-class dining Why: The views from the top of the spectacular Hajar Tower
Contact: www.palazzoversace.ae Contact: +966 2 659 9999 or qasralsharq.jeddah@hilton.com Contact: +966 2 571 71 71 or hotel.makkah@moevenpick.com

073
style

powerful
perceptions
Communicate a message of confidence, competence and Never forget
with the stylish
power by presenting a professional image whether you are new lacquered
in your office, an airport or on location. memory stick
from Parisian
written by ruby rogers
jeweller Cartier.

Knoll’s award-winning Generation

chair is designed to respond to the
way people really sit, including
Embody, designed by unconventional postures.
Jeff Webber and the late
Bill Stumpf for Herman
Miller, is a health positive
seating experience.

074
Share your
vision with
state-of-the-art
audio and video
from Denmark’s
Bang & Olufsen.

Negotiate from a position

of power at Karim Rashid’s
Uno e Zero for Dellarovere,
the world’s first high impact
fibreglass desk.

075
style

Save My Tie by Hermès

has a reflective
fluorescent stripe that
illuminates the night with
a bit of offbeat humour.

Dress for boardroom success in this

classic yet chic suit by Paul Smith.

Bulgari’s new
Sotirio watch
celebrates the Smooth alligator Oxford
company’s 125th shoes with a rounder
anniversary. shape create a
professional aura from the
ground up by Hermès.

076
Déco, with its micro-crocodile
print, is a stylish personal
organiser from Filofax.

Communicate with
sophisticated glamour with
the golden Nokia mobile.

Soar beyond your limits in flight suit-inspired

corporate dressing by Hermes.

Alpha, by Tumi, organises all

your travel essentials in this
elegant snakeskinesque bag.

Step ahead of the competition

in these architectural-inspired
shoes by Lara Bohinc.

077
 looking
forward
from
behind
the lens
International award-winning
photographer Faisal Almalki
captures the essence of Saudi
Arabia and the world through
his camera lens.

written by dorothy waldman

The Arrival

078
photography

079
photography
Among the names to watch on the international art
scene is that of 33-year-old Faisal Almalki from Riyadh, Saudi Arabia,
who was recently named Photographer of the Year in the third annual
Masters of Photography Cup in Los Angeles (The Color Awards) in the
amateur division. The panel of 36 judges from 18 countries also awarded
him First Place in the Architecture category for his photo Rhythm Nation
II and second place in the People category for his work Happy Together.
In addition to these prizes, a total of 16 of his works were selected as
finalists in six different categories, a tribute to his versatility.
However, these are not his first accolades. He was also named Fine Art
Photographer of the Year at the International Photography Awards, “The
Lucies”, in New York City in 2008, scooped first place in the annual Popular
Photography reader’s contest, as well as gold medals from international
photography competitions in Austria and Qatar. One of Faisal’s photographs
is now on a greeting card in the UK for the Worldwide Wildlife Fund.
Relatively new to the world of photography, he has already amassed
an impressive portfolio that includes a range of subjects – architecture,
abstract travel – and techniques – abstract, abstract architecture and
realistic images. However, regardless of his subject matter, he always
attempts to capture it from a perspective that causes one to pause and
contemplate it in a new way. It may be the way he frames or crops the
image, or the way he utilises the camera to play with light and shadows
that creates his special effects.
THINK asked the talented young photographer about his work, future
and dreams.
How do you see your work evolving?
As much as I enjoy photography, I enjoy the bit of randomness in my
approach to it. I enjoy surprising myself with a few twists and jumps to
new subjects and stories every now and then. Lately, I have started to
feel more comfortable behind the camera and more content with the
new results – even when they are received differently from older works.
I think I’m shooting more what I really want to shoot and showing what
I enjoy seeing.
What would be your dream photographic experience?
It would probably revolve around doing more travel photography. I’d
love to be challenged with travel related stories to capture and then push
myself to try doing it.
Locally, I’d love to spend hours or days shooting inside the main lobby
of the holy mosque in Mecca. I think there are endless stories to tell in
and around it.
080
Do you digitally enhance your photography?
It depends on the image. There are images that only require minimum
digital input [adjustment to light levels and contrast] but other images
that require more care and time. I usually shoot a lot and so I’d prefer to
spend as little time as necessary editing them – unless I have to.
How have your past experiences affected your photography?
Graphically, there was a phase when my fascination with balance and
pattern was evident in my photos, then there are moods when all I try to
do is break that balance. I think my graphic approach is also inspired by
the years I spent in advertising.
Why do you exhibit internationally and enter contests?
Why internationally? Because it’s where the bigger audience is – as well as
the experts, markets, critics, etc. I’ve been blessed to be surrounded by a
very supporting circle of family and friends, and in order to seek honest
feedback I participated in those contests around the world. After winning
a few, my objectives changed and I continued to enter for exposure: for
myself and my credentials – as well as exposure to see others and what Faisal Almalki
they produce.
What has been the value/result/aftermath of these Photography
x x
exhibitions and awards?
Seeing winning works by people from all over the world helped push has really given
x x
me to improve myself and search for the new and good. At first, I used me a new, x x
to shoot only to post my photos online, but photography exhibitions,
magazines and contests offered me a greater audience to shoot for. I think more beautiful
x x
participating in some of these competitions, although costly and at times life – and I was
x x
exhausting, is incredibly rewarding, making me look and evaluate my
photographs differently. already loving
x x
my life. I think it
x x
Could you say something about finding and following your
passion? has a lot to do
x x
Photography has really given me a new, more beautiful life – and I was with how I now
x x
already loving my life. I think it has a lot to do with how I now enjoy
looking at anything – no matter how ordinary or mundane. Suddenly enjoy looking
x x
everything and everyone around me is interesting. at ANYTHING –
x x
What about the business of being an artist? no matter how
x x
After months of deliberation, I think I’ll be ready to do this full time, ordinary or x x
starting in the first quarter of this year. I promise to answer this question
then. mundane. x x
photography

Life in Technicolor

081
photography

”i think x x

participating
x x

in some of these
x x

competitions,
x x

although costly
x x

Rythm Nation II
and at times
x x

Yellow
exhausting,
x x

is incredibly
x x

rewarding, x x

making me look
x x

and evaluate my
x x

photographs
x x

differently.”
x x

082
 books
reviews by dorothy waldman
Architect Zaha Hadid

Library and Learning Centre, Vienna University of Economics and Business, Europe’s largest university focusing on economics and business and ranked by
the Financial Times as one of the top 50 B-schools, 2009.

Peaks and Valleys Inside Rupert’s Brain Ecological Intelligence The New Gulf
Spencer Jonson, M.D. Paul R La Monica Daniel Goleman Edmund O’Sullivan
Simon & Schuster Portfolio Broadway Books Motivate
By the author of Who A contemporary Even when we try Written by a
Moved My Cheese? legend, Rupert to be informed, eco- Middle East expert
Peaks and Valleys Murdoch, the chairman conscious consumers, from the UK, this
is a similarly short, and CEO of News hidden consequences book examines the
simple parable with Corp, has intrigued the may negate our sweeping changes
a profound message world with his business good intentions. Even occurring in this
about how to make acumen that enabled products labelled part of the globe
both the good and him to go from owning ‘green’ frequently have and how modern
bad times work for a small Australian hidden environmental Arabia is changing
you. Focussing on newspaper company to costs. For example, the rest of the world
the highs and lows of a multi-billion dollar international media mogul an organic cotton shirt may have been for the better. By
business as well as whose holdings include newspapers, film coloured with toxic dyes. Unveiling this examining the history of the region from
life, the author distils studios, radio stations, television and cable hidden damage to the environment in what the geological origins of the world to the
the lessons in the story to short, easy to networks, books, internet sites and more. the author calls “radical transparency,” will present time, O’Sullivan examines how
remember, yet quite profound, statements This small volume, written in an intriguing, allow consumers to make smarter purchasing history, geography and the discovery of oil
such as: “Whether you are temporarily readable style, examines his successes and decisions. But this can happen only when have impacted the six Arabian countries
up on a Peak or down in a Valley, ask failures, his gambles and his vision to reveal Life Cycle Assessment, which reveals the that make up the GCC. He then moves
yourself: What is the truth in the situation? how he managed to buy MySpace, Fox and total environmental impact of a product from seamlessly to his predictions of how the
Make reality your friend. Good advice in Dow Jones to create his empire. Though some conception through to disposal, is available emerging forces will grow in affluence and
any situation. fear him, few really understand him. to consumers. influence for a positive result.

083
forward thinking

golf
futures
written by steve hill

It may soon be possible to

conduct business on the golf
course, regardless of climatic
conditions.
Climatic conditions, such as sand or snow blizzards, will
not deter deal making on the golf course, thanks to plans for
a huge indoor centre that could also prove to be of interest
to environmentalists and Middle Eastern markets where
watering costs at the height of summer can bring a tear to the
eye of those paying the bills.
Amsterdam-based architectural company Zwarts & Jansma
has produced designs for a self-contained golfing arena which
would feature 14,000 square metres of training facilities on
synthetic grass, 20 golf simulators and a 34-bay rooftop driving
range.
Golf is the fastest growing leisure activity in the Netherlands,
and the indoor centre aims to help meet increasing demand
from players, and also relieve pressure on existing courses.
The sport has traditionally been linked with business,
hence there are plans to provide related facilities such as
lounges, offices and restaurants to enhance meetings and
transactions.

The Dutch Indoor Golf Arena project enlisted the help of

Nicklaus Design, the renowned company established by golfing
superstar Jack Nicklaus, to help bring their concept to life.
And the end result is an arena that could act as a general
weather-independent sports centre, as well as a focal point
for golf excellence in the Netherlands.
It is anticipated that the arena will also feature a golf shop of
more than 1,000 square metres, a wellness centre with sauna
and spa, and a four-star hotel.
Officials believe that around 170,000 visitors a year could be
drawn to the first indoor centre – due to be realised in 2012 –
www.indoorgolfarena.eu

while there are plans to build further arenas around the world
with developers in Saudi Arabia, the United Arab Emirates,
USA, Italy, France and Scandinavia currently expressing interest.
And the project would have solid green credentials thanks
to the use of solar energy, which would be generated to meet
some of its power demands.

084
085
visionary

written by dorothy waldman

Michael
Dell
Providing the
customer with
exactly what he
wants in a computer
is Dell’s forte.

When Michael Dell

dropped out of college at 19, he had a
thriving business building computers
to his customers’ specifications. To
keep the prices of his computers lower
than other PCs, he eliminated brick
and mortar stores and middlemen by
selling directly to the customer with
the use of order forms, phone orders
and now the internet. Explaining his
marketing model, he said, “Well, we
started the company by building to the
customer’s order. And interestingly
enough, we didn’t do it because we saw
some massive paradigm in the future.
Basically, we just didn’t have any capital
[to mass-produce].”
When his company went public in
1988, it was valued at roughly US$80
million, and in 1992 it was on the
Fortune 500 list of the 500 largest
companies in the world, making Michael
Dell, at 27, the youngest CEO of a
Fortune 500 company.
Today, customers have the option of
buying stock models, or they can select
only those options they need without
being required to get – and pay for –
extras they do not want. Dell considers
listening to and satisfying his customers
a hallmark of his success, stating, “Our
business is about technology, yes. But
it’s also about operations and customer
relationships.”
In 2004 he left his role as CEO, but
courtesy of Dell Inc.

remains on the Board of Directors and

devotes much of his time to the Michael
and Susan Dell Foundation dedicated to
improving the lives of children.

086
Powered by performance
Life is constant. The energy to power society
can be no less. Each and every day Sempra
Energy companies provide reliable, sustainable
energy to millions of people. We take great pride
in owning the largest natural gas utility in the
United States and building large scale energy
infrastructure. This includes one of the largest
thin-film solar sites in North America and joint
development of the most expansive natural gas
pipeline built in North America in the last 20
years. We operate one of the leading LNG
import firms in the United States. Our clean-
burning natural gas power plants produce over
2,600 megawatts of electricity. At Sempra, it’s
not about who we are. It’s about what we do.

© 2010 Sempra Energy. All copyright and trademark rights reserved.

087
088