LEGAL EAGLES 2018 B U Y O R S E L L?

Tips from a GREEN ENERGY’S MOMENT

A rapidly evolving legal framework The GCC has the means
underpins the UAE economy.
professional on how investors should and now the will to lead a hi-tech
Who is responsible for its creation? react to stock market corrections revolution in renewables

VOL. 19 ISSUE 07 | FEBRUARY 18–24, 2018

arabianbusiness.com

DUBAI PROPERT Y

How to
make
$1bn
in three
years
The founder of Ellington
Group Robert Booth is
writing his own rules
for real estate success

UAE: AED 15 Bahrain: BHD 1.500

Oman: OMR 1.500 Kuwait: KWD 1.200
 FEBRUARY 18 – 24, 2018, VOL 19 NO.7

26
C OV E R STO RY 32 DUBAI HOTELS
38 32
BUILDING CLASS Three industry
insiders give
Robert Booth left his role their thoughts on
as a senior executive with hotel oversupply,
Emaar to launch Ellington lower consumer
spending, and
Properties. With projects the impact of VAT
long sold out, he is taking on the future of
the market by storm. Dubai’s booming
By Anil Bhoyrul hotel sector.

36 STAR PEOPLE 43 FIRST WORD 41 44

From mergers
and acquisitions
q Davos and Dubai
specialists to are certainly two
wo
intellectual vastly differentt cities,
property rights as are the events
nts they
gurus, we take a hold each year””
look at some of the
most prominent
Shayan Shakeel
corporate attorneys Senior reporter
in the UAE today. shayan.shakeel@itp.com

www.arabianbusiness.com arabianbusiness #arabian business arabianbusiness SUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription

3
C O N T E N TS

1 8 T H E B I G P I CT U R E 22 COMMENT 24 C O M M E N T

His Highness Sheikh Mohammed Bin Rashid Al The financing needs of core The start to equity markets
Maktoum with French Prime Minister Édouard Philippe Islamic countries will remain in 2018 had been strong but
ahead of the World Government Summit in Dubai. relatively high in 2018 volatility has returned to the
global capital markets
Mohamad
Moham
m Damak mak
G
Global ngs
Ratings
Hee of Islamic
Head mic Vikas Sengupta
Financee at Chief Investment
S&P
&P Officer,
Guardian Wealth
Management

2 0 T H E B I G S T O RY

50

Amid the dramatic drop in oil prices,

the UAE and the rest of the GCC are
well placed to take advantage of a
historic shift in the world’s energy mix.

UPFRONT
08 FINANCE
Government debt and US
inflation will weaken the
dollar further in 2018.

09 SCIENCE
The UAE lends a helping
hand to those seeking to
explore space settlement
and habitation.

TRIBUTE THE YEAR OF ZAYED 1 0 F I R ST L O O K

Emirati scientist and inventor Talib Al Hinai on how Sheikh Zayed taught the people of the UAE Inside Dubai’s record-
to believe in themselves at a time when some doubted that the country would fulfil its ambitions. breaking Gevora Hotel,
which has been named
the tallest in the world.
4 6 S TA RT U P 4 8 L I Q U I D AS S E TS
MAP
1 5 UA E
The world’s first
autonomous pod is
unveiled in Dubai.

Entrepreneurs of the How to avoid burnout De-stressing day spas Palestinian art 1 6 L E BA N O N
Week: GymNation A drop in motivation, a sense Four places to unwind, relax comes to Dubai International funding
A low cost, high value fitness of defeat and the inability to and release all your tensions Tabari Artspace gallery for Lebanon in 2017
option sets its sights on the enjoy growth are common after a long, hard day’s work explores the art of lost amounted to $1.68bn,
UAE’s gym-crazed populace. traits among entrepreneurs. full of stress and worries. identity and the displaced. according to a UN report.
4 Vol. 19/07, February 2018
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F I R S T WO R D | SHA
SHAYAN SHAKEEL, SENIOR REPORTER
From Davos to Dubai
Last week’s World Government Summit was far more than
a talking shop for interesting ideas
YOU’D BE HARD-PRESSED
to name a reason why
anyone goes to a snow-
covered alpine town with
a population of 11,000 in a
corner of Switzerland called
Davos – other than to ski or
attend the World Economic
Forum (WEF).
The world’s most exclusive
talk-fest draws roughly
3,000 from the global elite
to grapple with complex
issues facing the world. This
year, according to the WEF,
its attendees committed to
eating less meat.
Of course, that’s a dig and
possibly a harsh one. As
Professor Alberto Alemanno
wrote in Social Europe last
month, Davos has helped
put issues such as climate
change and global inequality
on the map. By banning
all-male panels long before
the #metoo movement, its
organisers have actively
worked to increase female
participation on a stage men
have long monopolised.
Unfortunately, as he also
points out, its participants
also failed to predict the 2008
financial crisis, Brexit and
Donald Trump winning the
US presidential election.
Meanwhile, 6,000km away,
Dubai is doing something
entirely different. The Middle
East’s sunniest experiment
attracts over 15 million
tourists each year to its
beaches, malls and hotels, so
it’s already poles apart as a
destination. But each year it
holds its own congregation
of global thinkers that, unlike
the WEF, seems to be making
6 Vol. 19/07, Feburary 2018
u WGS The Dubai event hosted 4,000 delegates and 130 speakers
all those who attend go “wow”
at what is actually being done
rather than debate what is
theoretically possible.
Not just jaw-jaw
At the sixth World
Government Summit (WGS)
last week, we heard how
Dubai’s government-owned
power utility, Dewa, will
spend AED81bn to generate
25 percent of the city’s
energy through renewables
within 12 years, rising
threefold to 75 percent
by 2050. In doing so,
it will help the UAE, the
world’s seventh biggest
energy producer, reduce
fossil fuel dependence,
state expenditure and per
capita electricity usage.
(Abu Dhabi’s ADWEA is
65%
The percentage of today’s
primary students who will
do jobs that don’t exist today
already building the world’s
largest solar power plant.)
At the other end of the
summit, a 27-year-old UAE
Minister of State for AI, the
only such role in existence,
pitched to the world’s biggest
tech firms how they can bring
efficiency and automation to
the country’s manufacturing
ambitions, while also helping
a new generation develop
employable skills.
That latter goal is being
helped by the One Million
Arab Coders programme
in collaboration with
Facebook, Udacity and the
Dubai Future Foundation.
Meanwhile, a $500m
endowment to educate
Arab youth at institutions
around the world was also
announced at the summit.
If the world was an IT
company, WEF would be
the watercooler where time
is spent talking about “stuff”.
WGS would be the room where
the developers got working.
This contrast is perhaps
no more evident than in
Q THE CONTRAST IS
PERHAPS NO MORE
EVIDENT THAN IN HOW
BOTH EVENTS TACKLED
CRYPTOCURRENCIES”
how both events tackled
cryptocurrencies. At Davos,
global leaders continued to
debate – and were unable to
conclude – whether Bitcoin
is a bubble. In Dubai, UAE
Exchange’s 41-year-old
CEO, Promoth Manghat,
told us he’s betting on the
blockchain behind Ripple
to trial instant financial
messaging services with 100
international banks, because
“10 years from now payment
systems aren’t going to look
anything like they do today.”
Well-deserved praise
In his opening address to
the summit, India’s prime
minister, Narendra Modi,
called Dubai, and by extension
the UAE, “a miracle” and
he’s right: the country is only
46 years old. The plot of land
shaped like a palm tree upon
which luxury apartments
now stand that we can see
from our offices? 15 years
ago, that district was under
water. The only reason it isn’t
now is because there wasn’t
much time spent between
imagining an artificial island
and contracting a developer
to draw up the blueprints.
Davos and Dubai are
certainly two vastly different
cities, as are the events
they hold each year. But if
conversations like the ones
at the WGS continue to
progress the way they are,
Dubai and the UAE could be
drastically different places
in 15 years. Davos, and the
World Economic Forum, on
the other hand, might still
look exactly same.
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arabianbusiness.com 7
 Follow us on ArabianBusiness arabianbusiness #arabian business arabianbusiness

PERSON OF THE WEEK

D I A RY

Q WE ARE PROUD
UAE Exchange
announced that it BUSINESS

TO DELIVER THE
has now adopted EVENTS
RippleNet, Ripple’s ACROSS
enterprise THE REGION

FUTURE OF blockchain network

to facilitate instant,

PAYMENTS WITH
seamless and DUBAI

transparent Dubai International

Health Tourism Forum
RIPPLE”
cross-border
payments – the What: The theme of this
largest exchange year’s event is “Reimagining
and remittance Experience” and it aims to create
provider in the a platform for exchange of
UAE to do so. knowledge and expertise in
this important field.

800
The number of UAE
When: February 20-21
Where: Madinat Jumeirah Arena

Exchange branches Promoth RIYADH

in 31 countries Manghat, Saudi International
across the Middle CEO of UAE
Exchange
Pharmaceutical
East and India. Sciences Meeting and
Group
Workshops (SIPHA)
What: SIPHA is a project
SCIENCE U P/ D OW N aimed at bringing experts and
those interested in the field of
ISSAM KASSABIEH, SENIOR FINANCIAL ANALYST AT pharmacy together for sharing
MENACORP, GIVES HIS VIEWS ON TWO MORE STOCKS and improving pharmaceutical
and health-related practices
When: February 18-20
Where: Al Faisaliah Hotel
EMAAR
MARKA DEVELOPMENT DUBAI
Price at press Price at press
Gulfood 2018
AED0.53 AED5.70 What: The world’s largest food
event returns, welcoming F&B
professionals from around the
YTD d -4.06% YTD u +12.05%
globe. The trade fair promotes
UAE LAUNCHES $545K trade and commerce across
FUND TO SUPPORT Accumulated losses at Marka The company’s strong sectors as varied as beverages,
SPACE RESEARCH have been growing since the year-on-year results and dairy, oils, health, wellness, meat
The UAE has launched a company’s inception and while its improving profit margins have and poultry and other products.
$545,000 seed grant fund management has attempted to proven it is worth investing in When: February 18-22
to support new projects paint a brighter picture, stating – especially for the longer run. Where: Dubai World Trade Centre
into space settlement that cap-ex allocated on acquiring A cash-cow business for the
RIYADH
and habitation. franchises and brands would pay mothership, Emaar Development’s
Established by the Dubai off down the line, the reality is that strategy is sound but was Water Tech
Future Foundation, decrease consumer purchasing initially impacted by its higher Saudi Arabia
the Mohammed Bin power coupled with expensive listing price which deterred What: The event will be exploring
Rashid Space Settlement franchises meant big losses for investors who are used to small the latest developments in
Challenge will finance the firm. The retail holding has caps. Despite current market the water sector as well as
the ideas and help not yet managed to properly volatility, this is one to hold over investment opportunities in the
develop new business restructure its brand. the course of this year. Middle East.
models for living and When: February 19-20
working in space. Prediction: Flat to negative Prediction: Highs at dividend time Where: Marriott Hotel, Riyadh

arabianbusiness.com 9
UPFRONT
F E B R U A RY 1 8 - 24 , 2 0 1 8

“Every UAE national

THE EXPLAINER
is asked to provide
a good conduct
certificate when
applying for job.
Don’t you think it’s
also necessary for
expats as well?”

five-year country of residency.

They can be obtained from a
police force or government
authority in the expat’s home
country, or from the country they
have lived within the past five
years. The document must then
be attested by the UAE embassy
in that country, or the Ministry of
Foreign Affairs in the UAE.

Will it take long? The committee

says that the process is similar to
the procedure for marriage
The UAE Good Conduct Certificate certificates and education
qualifications. So probably.
New regulations mean that all expat workers seeking a job in the
UAE will have to obtain documents demonstrating past behaviour What about tourists and family
members? The new requirement
What is it? UAE expat work Why? The UAE Coordination good conduct and behaviour does not extend to sponsored
visas are now only granted on Committee said the move is part certificate when applying for family members and tourists.
receipt of a Good Conduct and of ongoing efforts to safeguard job. Don’t you think it is also
Behaviour Certificate. the country's national security. necessary for expats to provide And what if I already live here?
FNC member Hamad Al Rohoumi one as well?” According to the committee,
Since when? The ruling was first raised the issue with the long-term residents of the UAE
unveiled in a cabinet resolution labour minister last year and has How does one get one? The seeking a new visa can apply to
last month and came into effect been quoted as saying: “Every Certificate must be issued by Dubai Police or Abu Dhabi Police
on February 4, 2018. UAE national is asked to provide a the applicant’s home country or for their certificate.

A B O N L I N E T H E W E E K I N S O C I A L A N D D I G I TA L SUBSCRIBE: ArabianBusiness

THE COMMENT
q The business
model of a
‘delivery’ startup
is to grow with
investor funds,
making money comes later.
This is not how restaurants
operate so more and more
THE VIDEO: Why medical tourism is pressure will be put on them” THE STORY: Dubai-based currency
set to boom. Jeremy Lawrence and Bernd exchange signs up with Ripple. Anything on
Debusmann discuss what is being done to Amjad Zayed, beneath our story of the cryptocurrency is popular, and this one on UAE
attract the target 1.3 million visitors by 2021. challenge of third-party food delivery services. Exchange led the way for most of the week.

10 Vol. 19/07, February 2018

W H AT T H E Y SA I D
Q For the time being,
we are not about to
implement the
corporate tax”
Obaid Bin Humaid Al Tayer,
UAE Minister of State for
Financial Affairs, on changes
to the UAE’s tax environment.
Q In 2017, Dubai
welcomed 15.8 million
visitors, consolidating
its position as the
fourth most visited
city in the world”
Helal Saeed Al Marri, director
general of Dubai Tourism, says
business events play a vital role
in enhancing the city’s status as
a knowledge and innovation hub.
Q There is really
no excuse for the
continued use of
energy subsidies”
IMF managing director
Christine Lagarde expresses
her views on subsidies at the
Arab Fiscal Forum in Dubai.
arabianbusiness.com
F I R S T LO O K
Gevora Hotel,
Dubai
What is it: The latest addition
to the ever-expanding Dubai
hospitality scene – and the
new holder of the title of the
world’s tallest hotel, which it
has taken away from the JW
Marriott Marquis down the
road in Business Bay. It’s 356
metres and 53 centimetres
high, to be precise.
Where is it: It’s located in what
they call the Trade Centre Area
of Dubai, which essentially
means that canyon of
skyscrapers at the very
beginning of Sheikh Zayed Road
after the World Trade Centre
Roundabout. It’s sandwiched
between Al Attar Tower, owned
by the same group, and the
Ghaya Residences – and two
doors down from the Rose
Rayhaan by Rotana, the world’s
fourth tallest hotel.
C O M PA N Y O F T H E W E E K
CLEARTRIP MIDDLE EAST
Mobile and online travel company
Cleartrip Middle East has posted
its strongest ever quarterly results
in Q4 2017, after a 59 percent
year-on-year increase in bookings
in the MENA region.
“We marked a strong finish
to 2017 with the best quarterly
performance in Cleartrip Middle
u The Gevora is a new world record holder
What’s in it: 528 rooms, which
range from 46sqm deluxe
rooms to 85sqm two-bedroom
suites. There’s also a health
club on the 12th floor with all
the usual gym, studio and spa
elements, as well as the hotel’s
pool and lounge.
What does it look like: The
colour palette is what might be
called “Dubai Luxe”. It’s all dark
brown woods, creams and
off-whites and plenty of gold.
East’s history,” said founder and
CEO Stuart Crighton. “In markets
such as the UAE, we were able to
out-perform the industry by
showcasing a multifold expansion.
“We’re delighted to see that our
investment toward the adoption of
new technologies have started to
yield positive results,” he added.
Where can we eat: There
are several restaurants,
including the all-day dining
offering of Gevora Kitchen
on the Mezzanine floor, the
fine-dining Mediterranean
cuisine called Level Twelve,
and a top-floor restaurant
provide stunning views
across the city.
How much are the rooms?
Rooms will start at around
the AED550 mark.
S H O RT S
$1.8bn
The profit posted by
Dubai-based Emaar
Properties in 2017.
DUBAI BITCOIN
APARTMENTS NOW
SOLD OUT
Fifty luxury apartments
in Dubai with a price tag
in Bitcoin have now been
sold, according to the
UK-based development
team behind them.
11
X X X X X X X S U BJ ECT

Ideas on display at the Edge of Government Summit

An exhibition of new technology in Dubai showcased a series of new tech-based ideas that will transform the future

Transport Noise pollution Public sector Infrastructure Firefighting

A Swedish government-run This new service from a Canada’s Free Agents In a move designed to fix Thermal imaging cameras
railway company, SJ, is start-up called Decibel. programme has been poor road quality, Kenya’s may allow firefighters to
now allowing passengers Live allows entities that designed to fix the problem government is involving “see” in zero visibility, but
to embed a chip implanted create high levels of noise of talent retention and skills local communities via a the pictures are often
under their skin instead of to enter into blockchain- growth in the public sector. smart device placed on impractical and slow. A
using a ticket. In a move based smart contracts “Free Agents” are selected vehicles. It can measure new helmet called C-Thru
driven by customer with people who may be for their attributes rather road conditions in real time allows firefighters to stand
demand, train personnel affected. Companies can than their experience and and identify problems like upright in the smokiest
can scan people’s hands self-regulate noise output they can choose what work potholes – the repair of environments, which
as they enter stations or and issue cryptocurrency to undertake within the which is then assigned to enables them to get in and
board trains. fines if they transgress. Canadian public sphere. local labourers via mobiles. out of fire zones faster.

12 Vol. 19/07, February 2018

 A Theme Park Where Rides
& Movies Come Together

BUY ONLINE TO SAVE TIME & MONEY

motiongatedubai.com
© 2018 DreamWorks Animation LLC All Rights Reserved. ®, TM & © 2018 Lions Gate Entertainment Inc. and related companies. All Rights Reserved. - 20183PJ3HÄN)LSNP\T^^^ZT\YMJVT
TM & ©2018 Sony Pictures Entertainment. Inc. All Rights Reserved. All trademarks and copyrights depicted here in are the property of their respective rights holders. All Rights Reserved.
GCC
Saudi tourism, Iraq reconstruction
and autonomous vehicles in Dubai
SAUDI
Tourism in the kingdom
set to boom – report
ACCORDING TO A NEW
report, issued ahead of
Arabian Travel Market 2018,
recent reforms in Saudi
Arabia – in conjunction with
widespread investment in
the kingdom’s burgeoning
tourism industry – will drive
growth in the hospitality
market at a compound
annual growth rate (CAGR)
of 13.5 percent, higher than
the established markets of
the UAE (10.1 percent) and
Oman (11.8 percent).
Commenting on the
findings of the report, Simon
30 million
The number of tourists Saudi
Arabia aims to attract by 2030,
as part of its Vision 2030 plan
IN FOCUS
u India’s Prime Minister Narendra Modi delivers a speech during the opening
of the World Government Summit in Dubai on February 11
14
Press, senior exhibition
director, Arabian Travel
Market (ATM), which will
take place at the Dubai
World Trade Centre between
April 22-25, said: “Following
recent reforms and the
relaxation of visa regulations,
Saudi Arabia is poised to
capitalise on these factors
as it nurtures a vibrant
leisure and entertainment
sector, supported by a new
generation of hotels.”
Saudi Arabia is expected
to see a vast expansion of its
hotel and resort inventory,
along with a steep increase
in airport passengers, as
Crown Prince Mohammed
Bin Salman continues to
drive economic and social
reforms, including direct
investment in tourism, as it
diversifies its economy.
Riyadh
KUWAIT
Iraq reconstruction needs
international support
Deputy Prime Minister and
Foreign Minister Sheikh Sabah
Khaled Al Hamad Al Sabah said
last Sunday that the Kuwait
International Conference for
the Reconstruction of Iraq
(KICRI)’s main message is for
the international community
to support Iraq during the war
against terrorism and support
its reconstruction.
“Iraq is a resource-rich
country and it needs the support
of its brothers, friends and the
international community to help
through investment projects,
financing Iraqi government
reviewed projects and its
economic development,”
Sheikh Al Sabah said.
The minister expressed
confidence that the conference
will be a platform for the start
of new Iraq, strong in security,
stability and reconstruction.
The minister pointed out
that “Kuwait deals with the
Iraqi government being a
representative of all factions
of the Iraqi people”, stressing
Kuwait’s keenness to affirm the
validity of the government as it
heads towards elections.
d Kuwait is among the countries
helping to rebuild war-torn Iraq
Kuwait City
u UNRWA gets major funding
from Kuwait
Kuwait pledges
more aid for
Palestine
One month after the Trump
administration announced a
drastic funding cut to the
UN agency for Palestinian
refugees, only one country,
Kuwait, has stepped forward
to offer additional funding,
senior UNRWA officials said
last Friday.
The US announced in
January that it would give
$60m to UNRWA – a fraction
of the more than $350m
annual contribution that it
has previously provided to
the agency’s budget.
Kuwait stepped in to
contribute $900,000 and
about 15 donor countries,
including Sweden and Japan,
decided to speed up their
donations to keep UNRWA
afloat, said UNRWA’s
representative in New York,
Peter Mulrean.
Vol. 19/07, February 2018

Dubai
UAE
World’s first
autonomous
Abu Dhabi pods unveiled
Muscat in Dubai
DUBAI’S ROADS AND
Transport Authority (RTA)
launched the first tests of the
world’s first autonomous pods
at the World Government
Summit last Sunday.
The autonomous pods,
launched in cooperation with
Next Future Transportation,
are designed to travel short
q THE SUCCESS OF and medium distances in
dedicated lanes. They can
INITIAL TESTS OF be coupled together in as
THESE UNITS WILL little 15 seconds or detached,
BRING ABOUT A depending on the riders’
destination, in five seconds.
BREAKTHROUGH IN Each pod is equipped
TRANSPORTATION with cameras and
SYSTEMS THAT electromechanical
OFFER INNOVATIVE technologies to carry out
the coupling and detaching,
MOBILITY which can be activated while
SOLUTIONS” the pod is in motion.
Mattar Al Tayer According to RTA, each
RTA director-general pod has an average speed
20kmh, and measures
2.87 metres in length,
25%
The usage of autonomous
2.24 metres in width and
2.82 metres in height, and
weighs about 1,500kg.
transport in Dubai by 2030 “The pilot test of driverless
units is directed by His
Highness Sheikh Mohammed
Bin Rashid Al Maktoum,
Vice-President and Prime
Minister of the UAE and
Ruler of Dubai, in the context
of transforming Dubai into
the smartest city worldwide,”
said RTA director-general,
u Dubai aims to lower emissions Mattar Al Tayer.
arabianbusiness.com
q IFWE DO NOTACT NOW,WE WILL LOSE OUR
HUMANITY,AND THIS IS A DISASTER GREATER
THAN ANY OTHER PHYSICAL DISASTER”
Princess Haya Bint Al Hussein
Chairperson of the International Humanitarian City, a non-profit free zone
UAE
UAE launches Humanitarian
Logistics Data Bank
u Sheikh Mohammed with Princess Haya at the World Government Summit
Princess Haya has
announced the launch of
the Humanitarian Logistics
Data Bank at the World
Government Summit in Dubai.
The database will provide
specialised information to
help affected individuals and
ultimately assist in the fight to
end world hunger.
“The Humanitarian Logistics
Data Bank will facilitate the real-
time collection of data for the
deployment of aid in impacted
regions,” she said in her speech
at the summit last week.
Princess Haya is the wife
of Sheikh Mohammed, Vice
President and Prime Minister
$2.1bn
The value of emergency
humanitarian aid the UAE has
given to countries around the world
of the UAE and Ruler of Dubai.
She is also chairperson of the
International Humanitarian City
(IHC), a non-profit, independent
free zone created by Sheikh
Mohammed in 2003. Its
members include UN agencies,
non-profit organisations and
commercial companies.
“Realisation of the
Humanitarian Logistics Data
Bank’s incredible potential
will depend on dedication,
determination and drive,
not only of the organisations
within the humanitarian sector,
but of individuals. One of the
individuals whose support will
be the wind beneath the wings
of its success, is David Beasley,
executive director of the World
Food Programme,” she said.
The WFP claims to assist
80 million people in around 80
countries every year, delivering
food assistance and improving
nutrition in communities.
15
A R A B WO R L D
Air Arabia targets growth, India and Palestine
cooperate and Iraq looks to increase oil output
Cairo
EGYPT
Air Arabia
expects Egypt,
Morocco to
boost growth
AIR ARABIA EXPECTS EGYPT
and Morocco to drive growth
this year after the low-cost
carrier posted its biggest
profit on record.
Shares rose as much as 2.3
percent in Dubai and were
headed for their highest
close in a year. The airline’s
full-year profit attributable
to owners of the company
rose 29 percent to AED631m
($172m), helping it raise the
dividend to 10 fils a share
from seven fils a year ago.
This year the “good spots
for us would be Morocco,
which is going from strength
to strength, and we’re putting
more capacity on those
lines,” CEO Adel Ali told
Bloomberg TV.
“Egypt is another one
where we’ve grown 100
percent year-on-year and
we may grow more this year,
particularly with tourism
getting back to the Red Sea.”
Air Arabia, which operates
a fleet of 50 Airbus A320
aircraft, has bounced back
after overcapacity and low
yields hurt airlines in the
Middle East in recent years.
140
The number of Air Arabia
destinations across the globe
16
West Bank
PALESTINE
Palestine and
India sign
deals worth
$50m
u Indian PM Narendra Modi with
Palestinian leader Mahmoud Abbas
In his visit to Palestine, the
first by an Indian prime
minister, Narendra Modi
restated his country’s
commitment to Palestine.
Following talks with his
Palestinian counterpart,
Mahmoud Abbas, the pair signed
six agreements worth around
$50m, including the setting up of
a $30m super speciality hospital
in Beit Sahur. Another sum was
set aside for the construction of
a centre for empowering women.
“We rely on India’s role
as an international voice of
great standing and weight
through its historical role in
the Non-Aligned Movement
and in all international forum,”
Abbas said, “and its increasing
power on the strategic and
economic levels, in a way that
is conducive to just and desired
peace in our region,” .
Modi also said India remains
committed to the Palestinian
people’s interests.
Beirut
LEBANON
International Cairo
funding for
Lebanon reaches
$1.68bn in 2017
INTERNATIONAL FUNDING
for Lebanon in 2017
amounted to $1.68bn,
according to an update
released by the Office of the
United Nations Resident and
Humanitarian Coordinator
for Lebanon last week.
This amount includes a
total of $1.37bn disbursed by
donors in 2017 and $309.6m
carried over from 2016 by
implementing partners.
UN agencies and NGOs q WE SHOULD NOT
reported a total of $1.24bn FORGET THAT 1.5
received under the Lebanon
Crisis Response Plan (LCRP)
MILLION LEBANESE
framework last year. This LIVE BELOW THE
represents 45 percent of the POVERTY LINE”
overall 2017 appeal. Philippe Lazzarini
UN Coordinator for Lebanon
The consolidated data
shows a continued high-level
donor support to the country
in response to the impact of Diplomat
the Syrian crisis. Moreover, elected as
donors have also reported an
additional amount of around judge at ICJ
$650m committed for 2018
and beyond for Lebanon. Last Tuesday Lebanese
UN Resident and diplomat Dr Nawaf Salam
Humanitarian Coordinator for was elected as a judge to
Lebanon, Philippe Lazzarini, the International Court of
said the support enabled Justice (ICJ) for a nine-year
partners to provide access to term, the country’s
safe drinking water to more Supreme Judicial Council
than 1.3 million individuals, said in a statement.
help more than 870,000 The appointment ceremony
people to buy food in local
shops and markets, and enroll
more than 400,000 children in
was held at the ICJ Great Hall in
The Hague in the presence of
ICJ president, members and
public schools. scores of officials.
Vol. 19/07, February 2018
 q ENVIRONMENTAL RESPONSIBILITY
IS REFLECTED IN ALL OF OUR SOCIAL
BEHAVIOURS, REGARDLESS OF OUR
PLACES AND ROLES IN SOCIETY”
Yassin Al Khayyat, Minister of Environment of Jordan

Baghdad
Amman
JORDAN
Study calls
for enhanced
protection of
guest workers
Jordan is in a dire need of
joint agreements to protect
the rights of expatriate
q MY MESSAGE TO workers, according to a recent
study by director of Tamkeen
THEM (MIGRANT Fields for Aid, Linda Al Kalash.
WORKERS) IS, ASK The researcher went on to
urge the kingdom to adopt the
FOR YOUR RIGHTS International Convention on
– DON’T BE AFRAID” the Protection of the Rights
Linda Al Kalash of All Migrant Workers and
Director of Tamkeen Members of their Families.
Fields for Aid The Ministry of Labour
preferred not to comment on the
recommendations, noting that
“the Labour Law is now being
discussed at the Lower House,
and Jordan’s adoption of any
agreement should pass through
the representatives”.
“The government should be
aware of the benefits that this
JORDAN
Jordan,
US sign
environmental
agreement
MINISTER OF ENVIRONMENT
Yassin Al Khayyat and US
Assistant Secretary of State
for Oceans and International
Environmental and Scientific
Affairs, Barton J Putney,
signed an agreement
last Monday on a work
programme for technical
environmental cooperation
for the years 2018-2021.
The deal was in line with
the implementation of the
free trade agreement signed
between the two countries
to protect the kingdom’s
environment simultaneous
with promoting sustainable
development. Al Khayyat said
the agreement with the US
aims to bolster protection of
Jordan’s natural environment.
IRAQ
Iraq asks
BP to study
developing
Kirkuk oilfields
Iraq has asked British energy
giant BP to help bolster
production at oilfields
recaptured from the Kurds in
northern Kirkuk province, oil
minister Jabbar Al Luaybi said.
Luaybi told AFP he wanted to
discuss a request for BP to draft
a study on increasing output
when the company’s boss visits
Kirkuk in the coming days.
“I suggested they study my
proposal and I am waiting for
their reply,” Luaybi said.
BP is the biggest foreign
player in Iraq’s oil sector, running
the Rumaila field in the south of
the country which produces 1.5
million barrels per day (bpd) –
almost a third of Iraq’s output
Baba Gurgur, near the city of
Kirkuk, is Iraq’s oldest oilfield.

50,000
The estimated number of migrant
domestic workers in Jordan,
according to government figures
u Jordan has introduced laws that
protect the rights of migrant workers
adoption would bring to both
Jordanian workers outside
the kingdom and expatriate IN FOCUS
workers based in Jordan,”
Kalash told The Jordan Times,
stressing that “migrants and
refugees constitute around
a third of the kingdom’s
population, and this issue
should be considered as Jordan
goes through its Universal
Periodic Review this year”.
The study called for the review
of the Labour Law and other
concerned regulations to limit
the employer’s authority so that
migrant workers are granted the
right to resign voluntarily and to u ‘The Dome’, which serves as a classroom for children of the Zaatari village in
choose a different employer. Jordan, has won an award from the XX Architecture and Urbanism Biennial in Chile.

arabianbusiness.com 17
T H E B I G P I CT U R E

The inner workings.

Sheikh Mohammed Bin
Rashid Al Maktoum,
Vice President and
Prime Minister of the
UAE and ruler of Dubai,
is seen concluding his
meeting with French
Prime Minister Édouard
Philippe ahead of the
opening of the World
Government Summit in
Dubai on February 11.
PHOTO CREDIT: KARIM SAHIB/AFP/GETTY IMAGES
T H E B I G STO RY
How the GCC can benefit from
the great energy shift
Gulf countries are in a perfect position to take
advantage of a historic change
DESPITE A SLOW START, THE UAE AND
the rest of the GCC are well positioned
to take advantage of the seismic shift
that the world energy landscape is
currently undergoing, according to
industry analysts.
A new report called The Great
Energy Shift from global strategic
management consultants AT
Kearney, for example, notes that the
world’s energy markets are currently
experiencing “a massive realignment
that no other commodity seems to be
experiencing” as new technologies are
increasingly implemented; namely
renewable energy.
20
Historical perspective
As the report notes, the last time
such a dramatic shift took place in
the global energy mix was when oil
rose to prominence on a global level,
overtaking coal as the world’s foremost
energy source by the mid-1960s.
The emergence of oil, however,
was notably different from that of the
sources of energy that came before it.
“The key difference between the oil
age and the period in which coal or
wood was developing, was the market
concentration. The supply of coal was
a lot more fragmented, and wood was
everywhere,” explains Eduard Gracia,
an oil and gas strategy specialist at
AT Kearney. “The sources of supply [in
the age of oil] were more concentrated,
both geographically and through the
investments needed. There was a
barrier to entry.”
This concentration worked to the
GCC’s benefit, but in the shift towards
renewables it left them behind much
of the rest of the world. “They have an
abundance of hydrocarbon resources,
so there was less pressure to move into
renewables,” Gracia added. “They had
a very powerful position.”
There is plenty of evidence to
reveal the relative marginalisation of
renewables in this region. For example,
in 2016 the entire GCC generated less
photovoltaic power (0.44 terawatt
hours) than Slovakia (0.53 terawatt
hours), despite the European country
having a tenth of the GCC’s population
and a considerably lower solar
irradiance per square metre.
Vol. 19/07, February 2018

Regional initiatives
BAHRAIN
The Ministry of Electricity and Water
Affairs wants 10 percent of energy
consumption to be met by renewable
sources by 2035. The government
plans to construct a 100MW solar
plant that will provide six percent of
the country’s needs by 2025.
UAE
The government will spend $22bn
over the next five years, with DEWA
aiming for 75 percent of all energy to
be from renewable sources by 2050.
In 2014, Dubai launched the
Mohammed bin Rashid Al Maktoum
Solar Park, while Abu Dhabi is
building the world’s largest solar
plant at Sweihan, at around $870m,
and plans to build a second solar
park in order to ramp up output.
arabianbusiness.com
u Eduard Gracia, an oil and gas strategy specialist
at AT Kearney
Opportunities around the corner
Despite a slow start, the GCC has a
number of distinct advantages that it
can take advantage of when it comes
to renewable energy creation. For one,
irradiation in the GCC is significantly
higher than in the rest of the world, and
countries generally have much larger
uninhabited areas to support large solar
parks, particularly when compared to
Europe or parts of the US.
Just as importantly, the GCC can
count on its strategic position in the
world to attract investment and find
markets for renewable energies, as well
as clean energies such as gas – which
it has in abundance. “Wherever you
put your industry, you want to have a
market. The advantage of this region
is that [it] can balance three different
markets,” Gracia said. “You have
Europe, which is a very big market and a
good place to export stuff. There’s Asia,
and that’s growing very fast, while Africa
is picking up and could grow like Asia.”
It is this geographical advantage
that will allow the Middle East to
hedge its bets with regards to potential
customers. “You will always have a
market with three ways to go,” Gracia
added. “You can also attract talent, and
if you manage to attract that talent,
you’re in a good position.”
An innovation hub?
Rudolph Lohmeyer, vice president of
AT Kearney’s Global Business Policy
Council, noted that the GCC workforce
must be prepared to innovate in order
to take advantage of the shift in its
energy mix. “The Fourth Industrial
T H E B I G S T O RY
Revolution requires a ‘cluster logic’ of
innovation, a critical mass,” he said.
The GCC, however, is well placed in
this regard, he added. “This migration
of skills is a rich domain in science,
technology and engineering. And
countries of this region have a baseline
level of knowledge,” he said, adding
that this doesn’t change the scale of
re-skilling for workforces of the future.
“They have a foundation on which to
build a cluster, but these evolve over
decades so you have to start building
them now. It takes 30 years for a cluster
to form – look at Silicon Valley.”
Future scenarios
The AT Kearney report outlines three
distinct potential macro-level scenarios
that the Middle East might have to
adapt to in the future. Each of these has
its own impact on the energy market.
The first – globalisation 3.0 –
envisions an open global economy
characterised by growth and powerful
private sector actors that dominate
government decisions.
A second scenario is that the world
will increasingly divide into regional
blocs that compete on economic and
technological levels.
The third, and most pessimistic
scenario – which AT Kearney terms as
“islandisation” – envisions a future in
which financial crises, intense regional
conflicts and nation-state competition
are regular occurrences.
“The right answer to the challenges
of the upcoming energy transition is
not just spending cash across the board
and hoping it will bring a return. GCC
governments must ensure that all their
investments make economic sense,
particularly now that their oil revenues
are much smaller than three years ago,”
the report notes.
The report calls for GCC governments
to focus investments on opportunities
that leverage cheap energy sources –
including solar power – an educated
workforce, and their geographic position.
“Others have made the transition
before,” the report concludes, citing
Norway, Canada and Australia as
examples. “There is no reason why
the GCC could not follow the same
path to navigate the upcoming energy
transition.”
21
C O M M E N T | MOHAMED DAMAK, S&P GLOBAL RATINGS’ HEAD OF ISLAMIC FINANCE
Global sukuk market unlikely
to repeat 2017 performance
Global uncertainties, regional tensions and tightening
of money supply means fewer issuances this year
THERE WAS A SPATE OF
global Islamic bond, or sukuk,
issuances in 2017, led by those
from the Gulf Cooperation
Council (GCC) countries.
Saudi Arabia, for example,
issued a $9bn sukuk, the
largest ever issued globally.
There was even activity
from non-core Islamic
finance countries, such as
Hong Kong and, for the
first time, Nigeria, which
22
added to the record volume.
We expect other non-core
Islamic finance countries to
continue to tap the market
with Morocco and Tunisia
$97.9bn
The value of the global sukuk
market in 2017, an increase of
45.3 percent on 2016
both expressing intentions to
issue sukuk in 2018, while the
United Kingdom announced
its intention to go to the
market again in 2019 upon
the maturity of its 2014 sukuk.
The exceptional
performance of these bonds
was driven by good liquidity
conditions both in the GCC
and abroad, alongside
certain countries’ desire to
develop their Islamic finance
industries. In our view,
some issuers, particularly
those in Saudi Arabia, were
able to choose sukuk over
conventional bonds because
they were less pressed for
time to raise funds.
However, the outlook
for sukuk in 2018 is more
uncertain. While we still
foresee significant financing
needs for core Islamic
finance countries such
as the Gulf countries and
Malaysia, tighter global
liquidity conditions,
mounting geopolitical
risks, and slow progress
on the standardisation of
Islamic finance products will
continue to hold the market
Vol. 19/07, February 2018

back from its full potential.
That’s why, in my view, total
sukuk issuance is likely to
decline to between $70bn and
$80bn in 2018, despite the
fact that the financing needs
of some Islamic finance core
countries will remain high.
Rate rises
What are the reasons for this?
Firstly, global liquidity is
likely to tighten in 2018. We
expect the federal funds rate
to increase by 75 basis points
with central banks in the GCC
likely to mirror any increase
given their currency peg
with the US dollar. Similarly,
the European Central Bank
has announced it will start
reducing the pace of its asset
purchases from January
2018, to €30bn ($37bn) a
month from €60bn. We
therefore expect liquidity
from developed markets
channelled to the sukuk
market to reduce.
Positively, liquidity
conditions in the GCC
countries improved last year
and muted economic growth
and declining lending activity
will shift banks’ attention
from lending to capital
market activities. However,
regional and international
investors may be more
cautious given the resurgence
in regional geopolitical risks.
This is significant given
European and US investors
accounted for 28 percent of
sukuk investors in a survey of
34 international sukuk issues
between 2014 and 2017.
We have seen funding
outflows from Qatar’s
banking system of an
estimated $21bn as
of September 30, 2017 –
and we expect this trend
to continue, albeit at a
slower pace. While it
arabianbusiness.com
is true that the Qatari
government’s injection of
$39bn has mitigated some
of this risk, we believe
investors’ perception of the
cohesiveness of the GCC has
changed. Recent shifts in
u DIB is targeting loan growth of between 10 and 15 percent this year
First major
sukuk of 2018
Dubai Islamic Bank (DIB)
successfully issued a $1bn
sukuk in February with a
five-year tenor. It will mature
on February 6, 2023. It is the
first US dollar benchmark
sukuk transaction from the
GCC in 2018.
The issuance emanates
from DIB’s $5bn sukuk
programme and carries a
profit rate of 3.625 percent.
Experts believe this points
towards a strong demand for
DIB’s credit as well as the
confidence which global
investors have in the UAE’s
largest Islamic bank.
The issuance received 120
orders from a diverse investor
base as part of a $1.83bn order
book indicating nearly two
times oversubscription. The
instrument will carry a dual
listing on the Irish Stock
Exchange and Nasdaq Dubai.
q REGIONAL AND INTERNATIONAL INVESTORS MAY
BE MORE CAUTIOUS GIVEN THE RESURGENCE IN
REGIONAL GEOPOLITICAL RISKS”
Saudi’s power structure may
have a similar impact on
investors’ perception of the
region; however, the reform
programme could restore
investors’ appetite
in the medium term.
Lastly, while there has
been progress on the
standardisation agenda,
it is slow. The Accounting
and Auditing Organisation
for the Islamic Financial
Institutions (AAOIFI) and
the Islamic Financial Service
Board (IFSB) issued several
new standards in 2017 aimed
ultimately at smoothing the
process of sukuk issuance.
For example, a standard
for central Sharia boards
has been published, as well
as a standard on disclosure
requirements for sukuk. In my
opinion, standardisation for
cross-border sukuk issuance
is not only achievable but
will boost issuance volumes
and restore the attractiveness
of the instrument to issuers
through a smoother issuance.
Sharia compliance
While sukuk issuance may
decrease in 2018, there are a
couple of interesting trends.
These include the more
stringent application of the
COMMENT
profit-and-loss-sharing
principle supported by
several Sharia scholars.
While we do not opine
on Sharia compliance, we
are of the view that such a
development could deprive
the market of an important
class of investors, the
fixed-income investors, and
ultimately lead to higher
pricing. For a corporate
entity or a sovereign fund,
this trend is likely to reduce
the attractiveness of sukuk
due to legal complexity
and higher costs.
We are also seeing a
broadening of the investor
base to include retail
investors or waqf money,
which some believe could
lift sukuk issuance and
reduce pricing by boosting
demand. Although S&P
Global Ratings’ role is not
to advise waqf investors
[Muslim endowments to
good causes] about asset
allocation, we observe
that they are generally not
after profit maximisation
but rather the fulfilment of
certain social objectives.
In addition, the lack
of a specific regulatory
framework to protect retail
investors and ensure proper
access to information about
risks – as well as limited tax
incentives – leads us to
believe that the retail sukuk
will continue to make a
limited contribution to
sukuk issuance.
The financing needs
of core Islamic countries
will remain relatively high
in 2018. Nevertheless, we
believe certain factors such
as the tightening global
liquidity, geopolitical risks
and a lack of standardisation
leads to an uncertain year for
sukuk issuance globally.
23
 C O M M E N T | VIKA
VIKAS SENGUPTA, CHIEF INVESTMENT OFFICER, GUARDIAN WEALTH MANAGEMENT

u Some stocks on the S&P 500 retreated more than 20 percent from their 2017 highs by the first week of February

Market corrections are part

of any investment lifecycle
Stock market plunges around the world may have looked frightening,
but the underlying economic picture is still positive
THE PANIC IN STOCK MARKETS impact on investments points – has returned to Further, the US
that we have witnessed over across the portfolio, but the global capital markets. government will need to
the last two weeks can be the savvy investor will see The trigger to this was raise more funds to finance
largely attributed to one opportunity where others better than expected the tax reductions following
thing: expectations of rising see fright. employment data in the US President Trump’s Tax Cuts
interest rates in major The start to equity and the strong pick-up in and Jobs Act, which became
economies such as the US. markets in 2018 had been wage growth. These have law in December 2017. This is
Base levels are expected to strong, but volatility – raised expectations that the also the same period when
rise because inflation will marked by daily swings on pace of interest rate hikes the Federal Reserve will be
increase significantly in the Dow Jones Industrial will rise and cause treasury unwinding its balance sheet
2018 and this is having an Average in excess of 1,000 yields to rise faster. instead of buying new bonds.
24 Vol. 19/07, February 2018

Money off the table
Rising interest rates mean
that there is a different asset
class – namely fixed income
– that is expected to provide
good returns and reduce the
previous high dependence
on equities for growth.
Further, higher bond yields
reduce the attractiveness
of investments in equities
due to a bigger discounting
factor for valuing companies.
This is because higher
interest rates reduce the
perceived value of future
corporate earnings and put
pressure on profits.
Rising interest rates also
mean that it is now more
expensive to borrow money
to invest in the stock markets
and speculate. The era of
cheap money, seen for
much of the past 10 years, is
therefore increasingly coming
to an end. Also, when stock
markets fall and there is a lot
of leveraged money in the
stock markets, often driven
by quant funds, the fall is
more severe and faster.
Passively managed funds
(mainly ETFs) and by that
account, funds that cost
less than actively managed
funds (funds run by fund
managers), are the most
impacted during market
falls – largely due to
automated transactions
by these index and sector
tracking funds. Therefore,
in scenarios like this,
investments should go into
portfolios built of actively
managed funds – run by
fund managers who are far
more capable and better at
reacting to global market
conditions and identifying
investment opportunities.
Fund managers of these
actively managed funds
indeed charge higher fees
arabianbusiness.com
than a passively managed
fund, yet so much focus
remains on the “cost of the
fund” that investors often
forget that there is a reason
why actively managed
funds cost more money
in the first place.
Finding opportunity
On the upside, rising
interest rates and inflation
can also be a reflection of
strong economic growth,
increasing wages and more
global trade. Investors need
to remember that the
fundamentals for global
economies remain strong
and corporate profits will
continue to rise in the
short-term and medium-
term. So, the correction can
be seen as a great buying
opportunity for investors
taking a longer-term view
on quality companies,
especially the ones that
now have been brought
down to sensible valuations.
Surely, therefore, market
corrections based on these
economic and fiscal
sentiments should not be
a reason to panic in this
limited horizon.
Treading carefully
This market tantrum,
though, can be seen as a
starting point for events
in a year or two – when the
actual impact of rising
“These are the
times when
investors must
avoid panic selling
– getting out of
markets because
they want to cut
their losses”
COMMENT
q RISING INTEREST RATES AND INFLATION CAN ALSO
BE A REFLECTION OF STRONG ECONOMIC GROWTH,
INCREASING WAGES AND MORE GLOBAL TRADE”
inflation will be seen
and all the current positive
economic forces will not be
The plunge
able to counter the impact in numbers
of tighter job markets and
rising wages.
For many investors, a
correction is simply a sale.
Most smart investors have
been window-shopping
1,175
The number of points the Dow
these past few months, Jones Industrial Average fell on
looking at the stock prices Monday, February 5, its biggest
and then walking away – one-day point drop ever.
knowing that a correction is
around the corner and when
that correction comes, they
would swoop in and buy the
stocks at much better value
$3tr
and then hold onto them for How much the S&P 500 lost
long-term capital growth. from January 26 to February 7.
These are the times when
investors must avoid panic
selling – getting out of stock
markets because they want
to cut their losses. Every
10.4%
long-term investor during This is the percentage loss
the lifecycle of their in the Dow Jones Industrial
investments sees these Average in that same period.
market corrections and
they are great buying
opportunities always.
Some of these corrections
are deep and some last a
$1.1tr
long time, testing the This is approximately how much
investor’s patience. But, the stock market lost between
as long as an investor is the passing of the personal and
confident of the growth areas corporate income tax cuts on
and has a strong rationale in December 20 and February 7.
those growth areas (as well
as the research to back this
up), there should be nothing
to fret about.
I would like to end this
1,071
column with a simple The number of points Japan’s
message: the secret to Nikkei 225 fell on February 6 –
long-term wealth creation its steepest decline since Brexit.
is to stay invested, wait for
corrections, deploy cash,
never panic and to continue
to believe in one’s
investments. Now that the
339
correction has started, the The number of stocks in the
investment mantra must S&P 500 that lost 10 percent of
be: “Don’t wait to invest. their value between their 2017
Instead, invest and wait”. highs and February lows.
25
COVER STORY
By Anil Bhoyrul

Three years ago, Robert Booth left his role as a senior executive with Emaar
to launch his boutique property development company, Ellington Group. The
full order books and waiting lists are a testament to his latest success

ROOM AT
THE TOP
arabianbusiness.com 27
C OV E R STO RY
R O B E RT B O OT H

P
ICTURE THE SCENE. IT’S
2002, and Mohamed
Alabbar and Robert
Booth are sitting in
Al Hakawati café off Sheikh
Zayed Road in Dubai. The
Emaar chairman and one of his
top executives are having one
of their regular catch ups. “He
points to the Defence Lands
across the street and tells me
‘I want to build a development
that the whole world will want
to come and see.’”
Fifteen years later, Alabbar
has gone on to become one of
the world’s greatest ever devel-
opers, with his Downtown
Dubai project the feather in
a very impressive cap. Booth,
who left Emaar in 2014 to start
his own boutique property
company, Ellington Group, is
quite a chip off the old Alab-
bar block himself. He has the
swagger, the charm and most
importantly, the results.
“All our buildings are either
under design or construction.
Those under construction
are 90 percent to 100 percent
sold. We’ve done this with zero
marketing and some good
effective PR. It’s purely been
word of mouth; 50 percent of
the people who come into our
office end up buying some-
thing,” he says.
Founded only two years
ago with co-partner Joseph u Robert Booth moved to Dubai in 2001 after a successful career in his native Canada
Thomas, Booth now has 11
properties under develop- “We noticed the see the release of 14 more, DT1 in Downtown Dubai have
ment spread across MBR City, comprising another 2,400 already won acclaim from
Downtown Dubai, Emirates market becoming units. With an average price of both investors and residents
Hills, Jumeirah Village Circle more sophisticated AED1.2m ($328,000) per unit, for their top quality and, just as
and the Palm Jumeirah. But with an opportunity you can see the doubling of importantly, immaculate after-
these are certainly no ordi- to create a real revenues over 2017 to reach sales service. Take its Belgravia
nary properties. From day one, AED1.5bn ($411m) for this Heights project, due for release
Booth set out to create high-
design-led real year alone. By the end of 2018, shortly – current projections
end properties that replicate his estate company” revenues could have crossed show it will be completely sold
own passion for design, archi- the billion dollar mark since out, again with zero marketing.
tecture and art. The tagline is Ellington’s inception. Booth says: “We noticed the
“Live in Design”, where resi- market becoming more sophis-
dents can enjoy a “community Boutique products, ticated with an opportunity to
within communities”.
It has already brought seven
projects to the market and
AED1.5bn
Estimated revenues of Ellington
personal service
Its marquee projects such as
Belgravia and Eaton Place in
create a real design-led real
estate company and the market
is craving it. There are consum-
sold 1,500 units. This year will Group by the end of 2018 Jumeirah Village Circle and ers out there who are willing to
28 Vol. 19/07, February 2018

u Mohamed Alabbar recruited Robert Booth for Emaar Properties
pay a bit extra for this – either
for renting it or buying a home
in something that’s thought-
fully designed. You need to
be passionate about the busi-
ness. You can take a billboard
on Sheikh Zayed Road and
spend 30 million dirhams for it.
My view is that I’d rather take
that money and put it into our
product. It’s proven to be very
successful for us.”
He adds: “Around 60 percent
of the buyers in Belgravia are
end-users. Investors, however,
move quicker than end-users.
When they see the quality of the
arabianbusiness.com
C OV E R S T O RY
ROBERT BOOTH
u Belgravia is among the big name projects at Jumeirah Village Circle
u Ellington Group joined hands with Architecture firm ANARCHITECT to
create modern communities across Dubai
product, they want to move in
straight away. End-users will
bring in their family and friends
and then explore the option to
purchase the product. And
many end-users, when they
see our product, move in them-
selves as it is much nicer than
where they are staying.”
Walk around Booth’s show
homes – which, interestingly,
are built within his actual offices
in Burlington Tower – and it is
difficult not to be impressed by
the quality, class and attention
to detail. Booth’s biggest push,
and what he believes makes his u RP Heights at Downtown Dubai has been carefully planned
29
C OV E R STO RY
R O B E RT B O OT H

developments stand out from

the rest of the crowd, has been
to develop strong communi-
ties, not just buildings. Small
touches can make a big differ-
ence, such as regularly inviting
his buyers to the site to see the
latest progress, and an onsite
lunch for the workers during
the topping out ceremony.
When Belgravia was handed
over to buyers, he and his part-
ner, Joseph Thomas, person-
ally visited all of the residents
with a gift basket and welcome
note. In January, his team were
back there washing every resi-
dent’s car and leaving a “thank
you” note from Ellington for
living there.
He says: “I’m a great believer
that within every project we
need great communities. We
want to touch customers where
it’s important, and make them
happy. It’s why 30 percent of
our buyers are repeat buyers.
That’s impressive! People come
to our office and buy units and
then tell their friends. Our u A rendering of a living room in Eaton Place, Jumeirah Village Circle
first buyers came through our
sales people and our friends. “If a developer can capture Like many experts, Booth to invest in Dubai in the right
After that, the rest of sales was about five to eight percent of expects the Dubai property product, yes, and also go to the
through word of mouth.” market share, you have a size- market to flat line in 2018, right developer.”
He adds: “We focused on able business. So I went with suggesting that with capital He is also confident that the
every detail in our first building the mind-set of capturing five values under pressure there is market has matured enough to
(Belgravia) – we had 181 units percent of the market share, a softness in the market. make it harder for undercapi-
and 101 of them had zero snags. which I think we can easily He says: “There’s still a talised developers to make an
This is unheard of in the indus- achieve, given the nature of our market out there… the world entry, thanks to new regula-
try. Customers were hugging product and positioning.” doesn’t stop. You still need to tions brought in by the govern-
our sales staff and thanking build homes. Dubai’s capac- ment after the 2009 crash.
them. We have a waiting list to “The government ity is for around 25,000 units He says: “If you look at the
get into the building to rent – was smart as it annually but it does not get previous cycle, there was too
that is remarkable. The rental delivered. The number of units much leverage in the system
yields are 15 percent over what took this leverage actually delivered is around – in Dubai during 2008 it was
you get in the marketplace.” out of the industry 40 to 45 percent less. So there a 100 to 1. Lehman Brothers
through regulation. is an undersupply. There’s went down when they were
Staying focused a softness in the market for at a leverage of 45 to 1. So you
That said, property is no easy Now it is a challenge inferior products that will get can imagine what happened
market to be in. Ellington for for a developer to to nowhere, no matter where to Dubai. The government
now is only focused on Dubai, enter the market” we are in the cycle.” was smart as it took this lever-
which has an annual require- In so-called micro markets age out of the industry through
ment of around 25,000 residen- such as Downtown Dubai and strict regulations. Now it is a
tial units. With Emaar already Dubai Marina he still sees the challenge for a developer to
having captured around 50
percent of the market, that
leaves everyone else to fight for
25,000
How many units a year Dubai
potential for a price rise of up to
three percent – so much so that
“I would completely urge my
enter the market as you need
to be much better capitalised.”
He adds: “The regulations
the remaining share. needs to deliver to meet demand son if he had a million dirhams state that for me to sell a build-
30 Vol. 19/07, February 2018

ing I need to own the land
100 percent. So I should have
20 percent of the building
constructed or I have to post a
letter of credit or a bond with
RERA for that 20 percent. The
leverage now is good, so only
serious players can come in
and top that off with the market
being competitive. Gone are the
easy days and that is because of
government regulations, which
are fantastic for the UAE and
Dubai’s property industry.”
Next steps
So what next for Canadian-
born Booth and Ellington?
For now he says taking on any
projects outside Dubai is just
not on the agenda.
“There’s an old saying in
North America that, as a devel-
oper, if you have to get on a
plane or a train to see a site, it’s
too far away. If you can drive to
it, then develop it,” he says.
arabianbusiness.com
u DT1 is being developed in Downtown Dubai
And Booth has certainly
driven to a lot of building sites
over the years. He started his
career working in Canada
for the gigantic Asian devel-
oper Li Ka-Shing, on a $3bn
Vancouver project. By the age
of just 29, he was in Toronto
working on a project to build
16 high rise towers in Down-
town Toronto.
It was then that a chance
meeting took place which
would change his life. Alabbar
was in Toronto in 2000, and
Booth was invited to meet him
as Alabbar was busy putting
together a masterplan for
Dubai Marina.
“As I got to know him over
the course of the year, we
would meet and talk and have
lunch. One year, he invited me
to come to Dubai,” says Booth.
Moving to Dubai in 2001, he
joined Emaar Properties PJSC,
holding various senior roles,
including CEO of its North
America region and CEO of the
overall Real Estate division. He
was instrumental in the devel-
opment of Arabian Ranches,
Emirates Living, Emirates
40,000
The number of residential units
Robert Booth helped bring to
market while at Emaar
Hills, The Greens, and The
Dubai Marina, bringing over
40,000 residential units onto
the market.
His crowning achieve-
ment was his involvement
with the flagship Downtown
Dubai project, where he over-
saw everything from hiring
masterplanners to launching
the hotel, retail and residential
components, including the
Burj Khalifa. Having defined
international build standards,
he maintains his role at Emaar
as advisor to the chairman,
while serving as an independ-
ent director on the advisory
board of Indian business
conglomerate Piramal Group’s
real estate division, and the STC
Aqalat board that was set up to
monetise the company’s land
bank in Saudi Arabia.
He says: “I was young then,
and in many ways, Emaar was
a start-up too. The joy of creat-
ing something out of nothing
is really fun for me. And now
with Ellington, this is the third
start-up and I’m still excited. I
can do something really inno-
vative and really exciting in
the marketplace. My son asks,
‘How do you have so much
fun at work?’ I tell him it’s like
sports when I go into the office.
It’s not like work, I love what
I do.”
Judging by the numbers, so
do his customers. a
C OV E R S T O RY
ROBERT BOOTH
Why Expo 2020
will be huge
“Dubai in short order has
become a global city. In 2001
when I arrived, the population
of Dubai was 900,000 people.
Today, it’s 2.8 million. But in
reality, Sharjah, which is just
adjacent to Dubai has 1.4
million residents. So we
actually have a metropole
of over four million people.
With Emirates airline and
the lifestyle here, everyone
wants to come to Dubai.
“I look at the vision of the
government. They are
constantly investing in
infrastructure. The WEF ranked
UAE number one worldwide
in infrastructure; higher than
Switzerland and Singapore.
The ports, the rail network,
the roads, the airport is all
burgeoning. We talk of Expo
and the $7.5bn investment for a
six-month show. If you look at
the private and public sector
over that same period, they are
investing over $100bn – they’re
expanding the canal, building
roads, a new airport, more
planes… so whenever you have
a government committed to
growing infrastructure, you
have an economy growing.
“In Vancouver, my home city,
Expo came and went but the
big benefits came after. People
came to Canada and said they
want to buy a home there and
for 20 years it grew because of
Expo. So in Dubai, there will be a
lot of legacy benefits. And more
and more people want to see
Dubai and when they do, they
like it and buy a home here.
So I am gung-ho about Dubai.
“Business cycles are not
going to end. There will be
major and minor business
cycles, there will be ups and
downs, but what I’ve learned
since 2001 is don’t bet against
the vision of Dubai.”
31
XEXAT
F X XUXRXEXHFOESAT
P IUTA
R EL I T Y

Arabian Business talks to three key players

in the hotel space about oversupply, lower
consumer spending and the possible
impact of VAT on the market
By Lubna Hamdan

WHAT
NEXT
FOR THE
DUBAI
HOTEL
SECTOR?
32 Vol. 19/07, February 2018

C
HANGE IS ON THE HORIZON FOR
Dubai’s hotel industry. More
than 50,000 hotel rooms are
expected to be delivered in the
UAE in the build up to Expo 2020, in
order to provide accommodation with
the anticipated 25 million visitors who
will come to the country over the course
of the six-month event.
The question facing the hospital-
ity sector is what will happen when the
Expo is over? Will the market experience
an imbalance of supply and demand,
or will it have matured and learned to
survive on lower occupancy or yields?
More importantly, how will the market
keep up with travellers who are spending
less on accommodation in a city where
most hotels are in the luxury category?
Finally, is it strong enough for hotels
to pass on the newly introduced cost of
VAT onto the customers? Arabian Business
speaks to three industry experts.
Are there too many hotels being built for
Expo 2020?
Olivier Harnisch: Well, I don’t think
there are hotels being built for Expo 2020
specifically, because the event will come
at a time when Dubai is still growing, so
I don’t think there will be too many in
the future. The demand is there, as seen
by growth of between seven and eight
percent a year, and between two and
2.5 million room nights coming onto
the market. While the quality of Dubai
hotels is fantastic, and they are great at
operating around 80 percent occupancy,
supply and demand will not be perfectly
correlated going forward, so there will be
periods of volatility.
This is something that we have to be
ready for as an industry. There will be
periods where, as a hotel manager, you
will have two or three new hotels open up
in your immediate vicinity. The demand
growth will not be able to immediately
absorb that supply, so we’ll have to be
very strong on the commercial side, but
also on the operational side.
Simon Allison: A lot of hotels are being
built in Dubai at present, though this
is more to do with the general expan-
sion of the tourist offering and not just
for Expo. That said, there is always a dip
in demand after a major event like the
Olympics, the World Cup or an Expo and
so there will surely be some softness in
arabianbusiness.com
H O S P I TA L I T Y F E AT U R E
the year afterwards. Of greater concern
would be a general economic downturn
which usually has a much greater impact
on occupancy than a post-event dip.
Does that make it all doom and gloom?
Not really. I remember asking the head
of strategy for a major Dubai firm in
2009 how the Emirate would fare, given
the meltdown in financial and property
markets. “We’re not worried”, he argued.
“Basically, if you live between Cairo and
Karachi and you want to have fun, you’ll
come to Dubai”.
Olivier Harnisch: When occupancy
goes down to 65 percent, which is a
level where most hotels in other parts of
the world make money, we will have to SIMON ALLISON
be able to operate more efficiently and Founder of Hoftel, an invitation-only
flexibly. This efficiency mindset starts network of hospitality property investors
with the way hotels are built. There is
still a lot of generosity in the way hotels
are constructed, especially in areas the
guests don’t see, such as the back of the
hotel and office space.
Does the market need more mid-scale
and affordable hotels?
Tony Ryan: As I have a global role with
JLL, I see this in very different markets
around the world. This is similar to China,
where there was an oversupply in luxury
hotels that needed be filled out with mid-
scale offerings. These can be constructed
at a very significant discount to what you
might expect for a five-star hotel; often at
20 to 30 percent of what it might cost for OLIVIER HARNISCH
a luxury equivalent. CEO of Emaar Hospitality, a group that operates
The rates they offer, allied with an the Address,Vida and Rove hotel brands
aggressive distribution system, also
makes them very compelling financially.
We are increasingly seeing a burgeoning
middle class from India and China who
want high-end, but there is also a vast
number of people looking for mid-scale
hotels. So the growth in mid-scale and
upscale is found right across the globe
and I think it’s applicable in Dubai.
“We are increasingly
seeing a burgeoning
middle class from India
and China who want high
end, but there is also a TONY RYAN
Managing director of JLL Hotels & Hospitality,
vast number of people which develops and executes strategies for
looking for mid-scale” hotel investors, owners and operators
33
F E AT U R E H O S P I TA L I T Y

“The world is used to

VAT. Most countries
have it. It depends on
whether the market is
strong enough for it
to be passed onto
the customer”

Olivier Harnisch: The old perception

that Dubai is only about sun, sea and
shopping is changing. We opened Dubai
Opera a couple of years ago, and in Abu
Dhabi, the Louvre Museum just opened,
so there is a huge diversification in terms
of offerings and attractions.
The Dubai market is a bit atypical
compared to other markets in that over
60 percent of hotel room supply is in the
upscale and luxury category. Yet, there
is an increasing demand for mid-market
hotels. Emaar Hospitality has responded
to that by creating Rove Hotels, a contem-
porary mid-market brand for Generation
Y. More importantly, we should not make
the mistake of thinking that the traveller
that stays in the mid-market hotel has
little money to spend. That is not the case.
There is an increasing number of travel-
lers who consciously decide to spend a
lower percentage of their travel budget on
accommodation. Our goal is to build mid-
market hotels to respond to that demand.
u The UAE’s hotel occupancy rates are expected to increase this year due to strong growth in demand
Do you think hotel brands take too much
of the glory and profit, and too little of One of the reasons we set up standing from both sides as to what
the pain and slow market conditions? Hoftel as an owners’ group is so that they can contribute. Brands these days
Simon Allison: Generally speaking, yes. owners can learn from each other on are effectively a profile for the asset, but
The way the business model works is that how best to deal with this. most importantly they’re about distribu-
the brand takes two to three percent of Tony Ryan: It’s a dynamic relation- tion. And that’s the critical thing that a
the revenue, the top line of the hotel, and ship depending on different markets brand will bring to a hotel. For a location
then another percentage of the operating around the world. It’s absolutely criti- that is relying particularly on inbound
profit. But they’re not affected by what cal that the owner, who is about to traffic, this is where an international
happens under the operating profit, such commit hundreds of millions of dollars brand can really come to the table and
as the insurance, the property tax, and to a particular asset, feels as though he provide much better occupancy, which
the debt. You can actually have a situ- is being listened to and is getting the will reflect in a much higher rate.
ation where the hotel owner is losing best possible return he can from that Simon Allison: On that point, I think
money, but the brand managing the investment. That requires an under- there is a fundamental change happening
hotel is still making a healthy fee. in the industry. Owners do pay a lot for
Generally, experienced owners know distribution – selling the rooms to guests
how to negotiate these contracts quite – and a lot of the distribution is done by
well, so there is a lot more alignment
of interest with the brand. A lot of new
owners, however, don’t. And the brands
98%
The rise in the UAE’s tourist arrivals from
online travel agents, such as booking.com
and expedia.com. So owners are ques-
tioning why they are paying the brands
will usually offer them an initial template Russia in 2017, according to a market these fees for the room nights when, in
which is very favourable to them. review from Colliers International reality, someone else is selling them.
34 Vol. 19/07, February 2018

Then you have a new group of
unbranded, white label operators, who
will run your hotel for you, and then you
have to pay a franchise fee to the brand.
The overall fee might be higher, but the
general perception of the owners is that
those white label operators are much
more focused on your bottom line.
So that’s a challenge for the brands.
Do you think the introduction of VAT
will have a significant effect on the
industry in the months ahead?
Simon Allison: The world is used to
VAT. Most countries have it. It depends
on whether the market is strong enough
for it to be passed onto the customer, or
whether the hotels have to absorb it. And
clearly, with a lot of new supply coming
into markets like Dubai and Saudi Arabia,
a lot of owners will be swallowing that
arabianbusiness.com
u A report from analysts Coface said VAT is not expected to impact on the UAE’s growth
rather than passing it onto the customer.
It also adds another layer of complexity
to all the accounting, so that’s unhelpful.
But again, most of the world has learned
to live with it.
What worries me slightly is that every
year or two there is another additional
cost. When you have extra costs on the
hotel rate, as a customer I think, “Oh, that
is just the rate. I have to pay more”. When
it gets above 25 percent, people will stop
and calculate it. That is when people will
really focus on it, and that could hurt.
90,600
The number of branded hotel keys
expected to enter the UAE hospitality
market over the course of 2018
H O S P I TA L I T Y F E AT U R E
Tony Ryan: I’ve seen VAT introduced
in a host of countries around the world.
On the whole, there is an initial period
of disruption for a year or two until the
market gets used to it and then it’s very
quickly understood. I must point out
that the structure of VAT in the UAE is
very simple in the way it was adopted.
In other countries, such as India,
where there are four or five tiers of
VAT, it is unbelievably complicated in
terms of how a hotel should be applying
VAT to different services provided
by the hotel. So I don’t see this tax as
particularly challenging.
For that reason, the system that’s been
adopted here will be readily absorbed by
the industry, including both domestic
and inbound players. There’s nothing
unusual about this in terms of what’s
happening in other markets.
35

q ESSAM AL TAMIMI IS AN
ESTABLISHED AUTHOR
AND HAS PUBLISHED
NUMEROUS ARTICLES AND
BOOKS ON LITIGATION AND
ARBITRATION IN THE UAE”
– The Legal 500
Telephone: +9714 364 1641
Website: tamimi.com
E-mail: e.tamimi@tamimi.com
arabianbusiness.com
L AW Y E R S L I S T F E AT U R E
ESSAM
AL
TAMIMI
AL TAMIMI & COMPANY
THE FOUNDER OF ONE OF THE GULF’S
oldest and largest law firms has more than
34 years of experience, having grown his
full-service commercial company from a
single office in 1989 to 17 locations across
nine countries. The senior partner is
known for being a driver of legal reforms,
having often called for the revision of
some of the UAE’s “outdated” legislations.
He told Arabian Business last year that
the legal system is finally moving ahead.
“Progress is speeding up a lot... We still
have a lot to do, but the authorities are
dynamic... they hate bureaucracy and
they are empowering people under them
to make changes, too,” he said.
Al Tamimi’s contributions include the
development of laws for the Telecom-
munications Regulations Authority (TRA),
Dubai Internet and Media City free zones,
Ministry of Commerce and Industry, DIFC
and the Abu Dhabi government.
Most recently, he helped the UAE
government launch a long-awaited arbi-
tration law. His main goal, he said, is to
create awareness and strengthen the rule
of law in the Middle East.
Al Tamimi has been awarded the Inter-
national Financial Law Review’s Life-
time Achievement Award and the Gulf
Legal Lifetime Achievement Award. He
founded the UAE branch of the Chartered
Institute of Arbitrators, is a member of
the International Bar Association and the
chairman of the Board of Trustees of the
DIFC Arbitration Institute.
37
F E AT U R E L AW Y E R S L I ST

q YOU GET A FAIR IDEA

OF ASHISH MEHTA’S
CONNECTIONS FROM
THE MOMENT YOU
WALK INTO HIS OFFICE”
– Khaleej Times
38 Vol. 19/07, February 2018

ASHISH MEHTA
ASHISH MEHTA & ASSOCIATES
AS THE FOUNDER AND MANAGING
partner of Dubai’s first licensed,
independent Indian law firm, Ashish
Mehta & Associates, Mehta has become
one of the most visible stars of Dubai’s
legal scene over 24 years of law practice.
The law firm has a diverse range of
clients, from high-profile multinational
and regional companies to ultra-high net
worth individuals and Bollywood stars.
Among those who have praised his work
include the former prime minister of
Pakistan, the late Benazir Bhutto.
Born in New Delhi, Mehta was called
to the Indian Bar to practice law in
1992 and qualified as a Solicitor of the
Supreme Court of England and Wales
in 2000 – a qualification he maintains
with a valid practicing certificate from
the Solicitors Regulation Authority – as
well as in the UAE, including before
the courts of the Dubai International
Financial Centre (DIFC).
The multi-jurisdiction law firm – which
operates in the UAE, UK, India and
Singapore – provides counselling on a
wide variety of complex legal matters,
including corporate matters, commercial
transactions, cross-border investments
and trade, banking and finance, HR and
employment, property and construction,
real estate acquisitions, mergers and
acquisitions, financial restructuring
for distressed assets, arbitration and
mediation, intellectual property (IP), the
creation of offshore structures for wealth
management, private clients and family
matters, general crime and litigation.
Mehta is a commentator on political
and legal matters for a number of news
outlets, on topics ranging from visa
arabianbusiness.com
L AW Y E R S L I S T F E AT U R E
policies to domestic politics and India’s
elections such as the well-remembered
article “Gandhi vs Modi: the race enters
its final stage” in Arabian Business.
He writes a weekly legal column for one
of the UAE’s largest daily newspapers.
Mehta is a recipient of various awards
including the Real Estate Typhoon
Award, Forbes Middle East – top Indian
leader in Arab World, Legal Innovation
Award and Asia Pacific Entrepreneurship
Award. His long list of credentials include
being a fellow at the Indian Council of
Arbitrators, New Delhi, an accredited
arbitrator on the panel of the Indian
Council of Arbitrators, a Solicitor at the
Supreme Court of England and Wales;
a member of the Chartered Institute
of Arbitrators – UK and Law Society of
England and Wales.
Additionally, he is a trustee of the
DPS World Foundation, a legal and
compliance director for the UAE
Chapter of the Institute of Directors, a
legal advisor to the Jawaharlal Nehru
Sports Trust in Delhi and a member of
the managing committee of the Shaheed
Zulfikar Ali Bhutto Institute of Science
and Technology (SZABIST) in Dubai.
Mehta is a strong proponent of corporate
social responsibility. For many years the
firm has provided pro bono legal services
to Indian residents of the UAE through
the Indian Workers Resource Centre in
Dubai, which was established by the Indian
government to help Indian nationals who
need legal assistance in the UAE.
Telephone: +9714 351 8989
Website: amalawyers.com
Email: info@amalawyers.com
39
F E AT U R E L AW Y E R S L I ST

CHARLES
DERSAHAKIAN
CVML

LEBANESE-ARMENIAN CHARLES
Dersahakian is a partner at CVML,
a French law firm based in the Dubai
International Financial Centre (DFIC).
He specialises in corporate and
commercial law and his particular
expertise lies in real estate, retail and
the entertainment sector.
He started his career in Dubai back
in 2002 and his subsequent 16 years of
experience in the UAE have been divided
between private practice and in-house
roles in the GCC region generally
and the UAE specifically. As a result,
Dersahakian is well versed in the legal
system of the UAE having held several
governmental and private roles, such
as chief legal officer at RAK Investment
Authority and RAK Free Trade Zone
(now both entities have merged under
RAKEZ), regional counsel at Unilever,
and legal director at TECOM.
Dersahakian speaks Arabic, English
and French and holds a law degree from
the Lebanese University, and LLM in
International Trade and Commercial Law
from the University of Essex.

q CHARLES IS A HIGHLY
INTELLECTUAL LEGAL
COUNSEL WHO
COMBINES WIDE LEGAL
KNOWLEDGE WITH
PRACTICAL LAWYER’S
EXPERIENCE” Telephone: +971 50 344 4388
– Malek Alkhashashneh, legal Website: cvml.com
E-mail: c.dersahakian@cvml.com
director at Majid Al Futtaim
40 Vol. 19/07, February 2018

SCOTT CAMPBELL
LINKLATERS
THE NATIONAL MANAGING PARTNER
and head of corporate at Linklaters
Dubai since 2005, Campbell has exten-
sive experience in a variety of corporate
finance transactions, particularly public
and private mergers and acquisitions,
IPOs, private equity work, inward invest-
ment and joint ventures. With over 17
years in the Middle East – having first
arrived in 2000 – Campbell is particularly
well-known for his work in the financial
services, telecoms and property sectors.
He is often cited by his clients for his keen
understanding of the region and for his
pragmatic approach to complex cross-
border M&A issues.
Telephone: +9714 369 5811
Website: linklaters.com
E-mail: scott.campbell@linklaters.com
MARWAN ELARABY
SHEARMAN & STERLING
THE EMEA REGIONAL MANAGING
Partner at Shearman & Sterling repre-
sents prominent companies including
ADNOC, EFG-Hermes, Emaar Misr, Gulf
Capital, Ripplewood Advisors, Qalaa
Holdings, Satya Capital and TPG Growth.
He is a partner in the Capital Markets
and Mergers & Acquisitions practices,
but also specialises in private equity and
project development transactions, advis-
ing issuers and underwriters on IPOs and
bond offerings.
Telephone: +9712 410 8123
Website: shearman.com
E-mail: marwan.elaraby@shearman.com
arabianbusiness.com
SIMON
GREEN
CHARLES RUSSELL SPEECHLYS
SIMON GREEN IS THE PARTNER AND
both head of the Dubai office and Real
Estate in the Middle East for CRS. First
arriving in the region in 2008, Green
specialises in real estate and construc-
tion matters, with his main areas of
expertise being large scale mixed-
use developments and infrastructure
projects – particularly public-private
partnerships – as well as city centre
redevelopments, real estate invest-
ments, management, financing and
hospitality projects.
Additionally, Green and his team
regularly advise on foreign direct
investment from the GCC into
commercial and residential properties
in the UK and other parts of the world.
They also act for a number of corpo-
rates, financial institutions, govern-
ments and quasi-government entities
throughout the Gulf.
Telephone: +9714 246 1902
Website: charlesrussellspeechlys.com
E-mail: simon.green@crsblaw.com
L AW Y E R S L I S T F E AT U R E
q SIMON GREEN HAS
PROVEN CREDIBILITY,
BUILT TRUST AND
SHOWN FLEXIBILITY
AND OPENNESS AT
ALL TIMES”
– Raouf Salama, senior
legal adviser, Eagle Hills
Meanwhile, Green has also advised
on the financing and acquisitions of
developments using both conven-
tional and Islamic finance structures.
Green has co-authored a number of
publications related to real estate in
the GCC, and is a regular contributor
to a leading property journal. He has
also been a speaker at a number of real
estate events over the years, such as
the Bahrain Property Exhibition, Gulf
Engineering Forum and the Hotel
Technology Forum.
Notably, Green was praised by the
Chambers Global 2017 (Bahrain) in
its “spotlight table”, highlighting his
“active presence in projects and his
personable approach”. He is ranked
across multiple disciplines in all
the major legal directories, including
The Legal 500 Europe, Middle East and
Africa directories.
41
F E AT U R E L AW Y E R S L I ST
RULA
DAJANI
ABULJEBAIN
HOLMAN FENWICK WILLAN
RULA DAJANI ABULJEBAIN IS MANAGING
partner of HFW’s Middle East regional
office, a role she assumed in 2015.
Abuljebain has been based in Dubai
since 1996 and has been integral to the
development of HFW’s client base
across the GCC, in particular in Kuwait.
She specialises in transactional corpo-
rate and commercial law.
Her practice spans a wide range
of areas, including JVs and mergers
and acquisitions, as well as project,
infrastructure and strategic finance.
She also provides advice to compa-
nies looking to expand their existing
businesses in the Middle East. Abulje-
bain is an English qualified solicitor, a
member of the Kuwait Bar Association
and bilingual in Arabic and English.
Telephone: +9714 423 0555
Website: hfw.com
E-mail: rula.dajaniabuljebain@hrw.com
42
PERVEZ AKHTAR
FRESHFIELDS BRUCKHAUS DERINGER
WIDELY KNOWN AS ONE OF THE REGION’S
leading corporate lawyers with a talent
for negotiation, Pervez Akhtar is the
regional managing partner for MENA
at multinational law firm Freshfields
Bruckhaus Deringer, which is head-
quartered in London, and is a member
of the so-called Magic Circle of British
law firms.
Akhtar focuses on private equity and
mergers and acquisitions in a number
of sectors, such as financial services,
insurance, energy, utilities, transport,
logistics, consumer goods, retail, educa-
tion, healthcare, telecoms and media.
Telephone: +9714 509 9100
Website: freshfields.com
E-mail: pervez.akhtar@freshfields.com
FARAJ AHNISH
HADEF & PARTNERS
FARAJ AHNISH IS AN EXPERIENCED
adviser to government and private
institutions and is licensed to appear
before all Federal Courts of Appeal
of the UAE. Since 1990, he has been
responsible for Hadef & Partners’
day-to-day direction. He assisted
in incorporating many of the UAE’s
premier governmental and publicly
listed companies, has authored publi-
cations, and has a PhD in International
Law from the University of Cambridge.
Telephone: +9712 205 5300
Website: hadefpartners.com
E-mail: f.ahnish@hadefpartners.com
ABDULWAHID
ALULAMA
WHITE & CASE
F RO M T H E F I R M ’ S UA E O F F I C E S ,
Alulama supports clients across a range
of issues including mergers and acquisi-
tions, cross-border transactions, IPOs,
corporate governance and commercial
deals. He has a track record in financial
regulation, debt capital markets, finance,
project finance, real estate and litigation.
A large portion of Alulama’s practice
is also devoted to managing the firm’s
relationships with major UAE-based
clients, something his time as a former
general counsel to a sovereign wealth
fund has given him insight into, and to
whom he continues to provides coun-
sel regarding market developments.
He is an arbitrator under both the
ICC and Dubai International Arbi-
tration Center Rules. Before joining
White & Case in 2012, he was the group
chief legal officer of Dubai World,
and has been involved in senior roles
in the retail, natural resources and
finance industries.
Telephone: +9712 611 3477
Website: whitecase.com
E-mail: aalulama@whitecase.com
Vol. 19/07, February 2018
 L AW Y E R S L I S T F E AT U R E

NASSIF
BOUMALHAB
CLYDE & CO

NASSIF BOUMALHAB IS A BARRISTER AND

solicitor, and a partner in Clyde & Co’s
Middle East Dispute Resolution Group
based in the Dubai office. He is the lead
partner of Clyde & Co’s Middle East
Arbitration Group.
He practises corporate and commercial
litigation and arbitration with an emphasis
on shareholder, agency, management,
distribution, banking, finance and real
estate disputes, and financial crimes, and
represents a wide range of businesses,
including financial institutions and
leading multinational companies in the
leisure and hospitality, energy, transport
and defence logistics sectors.
The Legal 500 ranked BouMalhab
among eight leading individuals for
dispute resolution in the United Arab
Emirates, while Who’s Who Legal Future
Leaders – Arbitration 2017 recognised
Nassif as a Future Leader in Arbitration
globally amongst practitioners aged 45
and under.
In 2017, BouMalhab was selected as
one of 12 members of the task force
to advise the Sharjah International
Commercial Arbitration Centre
(Tahkeem) on the reform of its
arbitration rules. He was subsequently
appointed to the Executive Committee
of the Sharjah International Commercial
Arbitration Centre (Tahkeem).
q BOUMALHAB HAS BEEN RANKED BouMalhab is a Canadian national
AMONG EIGHT LEADING INDIVIDUALS who has appeared as party counsel
FOR DISPUTE RESOLUTION IN THE UAE” in over 35 international arbitration
proceedings administered under a wide
– The Legal 500 range of rules, including the AAA, DIAC,
DIFC-LCIA, ICC, LCIA and UNCITRAL.
Telephone: + 9714 384 4000 He has been appointed as sole arbitrator
Website: clydeco.com or chairman of the tribunal in a number of
E-mail: nassif.boumalhab@clydeco.com
DIAC and DIFC-LCIA proceedings.
arabianbusiness.com 43
F E AT U R E L AW Y E R S L I ST

HABIB AL
MULLA
BAKER & MCKENZIE HABIB AL MULLA

HABIB AL MULLA’S FIRM MADE HISTORY

when it became the first Emirati legal
practice to merge with an international
law firm – Baker McKenzie – in 2013.
It could have been an opportunity for Al
Mulla to take a back seat, but he shows
no signs of slowing down, having being
appointed sole managing partner last year.
Under his stewardship, the firm has
reflected shifting market trends. This
includes setting up dedicated intellec-
tual property and tax practices. The firm
also expects to create a technology prac-
tice as e-commerce and other aspects of
the digital revolution take off in the Gulf.
Al Mulla’s brilliant legal mind has been
called upon to provide expert opinion in
a multitude of cases both in the UAE and
abroad. The UAE’s top legal eagle was also
the architect of the legal framework estab-
lishing the Dubai International Financial
Centre (DIFC), has drafted many of Dubai’s
modern legislative structures, and was the
founding chairman of the Dubai Financial
Services Authority (DFSA).

q BAKER MCKENZIE HABIB AL

MULLA’S MOST IMPORTANT
STRENGTH, BEYOND ITS
PROFESSIONALISM AND ITS
COMMAND OF ALL LEGAL
MATTERS, IS ITS CAPACITY
TO LISTEN TO CLIENTS AND
UNDERSTAND THEIR NEEDS” Telephone: +9714 423 0000
Website: bakermckenzie.com
E-mail: habib.almulla@bakermckenzie.com
– The Legal 500
44 Vol. 19/07, February 2018

RANY
JOSEPH
SADER
SADER & ASSOCIATES
SADER – A FORMER PROFESSIONAL
basketball player – is the managing part-
ner of the Lebanon-based Sader & Asso-
ciates, which specialises in intellectual
property rights issues, entertainment,
distributorship, franchising, media and
publishing law. The firm also serves as an
ADJOU AIT BEN IDIR SIMON RODERICK
NORTON ROSE FULBRIGHT
ADJOU AIT BEN IDIR IS A CORPORATE
lawyer who focuses on mergers and
acquisitions, privatisations, outsourcing,
tender offer processes and international
joint ventures. Ben Idir was previously
based in the Paris and Casablanca offices
and has experience in cross-border
transactions involving leading groups
and investment funds in Europe, Africa
and the Middle East.
She recently helped global insurance
company AIG establish the first Sharia-
compliant insurance policy in the
Middle East and North Africa (MENA)
for merger and acquisitions activity.
Telephone: +9714 369 6332
Website: nortonrosefulbright.com
E-mail: adjou.aitbenIdir@nortonrosefulbright.com
arabianbusiness.com
Telephone: +961 1 499 888
Website: saderlaw.com
E-mail: sader@saderlaw.com
ALLEN & OVERY
SIMON RODERICK IS ALLEN & OVERY’S
regional managing partner. Having
been in the UAE for 23 years, he has
extensive experience in commercial
matters and advising on mergers and
acquisitions transactions as well as
joint venture contracts. His experience
includes the NBD and Emirates Bank
merger, the sale of a strategic stake in
Pakistan Telecom and the Al Futtaim
Group acquisition. He also has inter-
national dispute resolution experience
acting on arbitrations before the ICSID,
the ICC, the LCIA and Dubai Interna-
tional Arbitration Centre (DIAC).
Telephone: +9714 426 7101
Website: allenovery.com
E-mail: simon.roderick@allenovery.com
L AW Y E R S L I S T F E AT U R E
IP and anti-counterfeit legal consultant
for a large number of local, regional and
multinational clients, including L’Oreal,
Louis Vuitton, Burberry, Lacoste, Red
Bull, GlaxoSmithKline and Hermes.
Additionally, Sader is the founder and
president of the Sader Law Research
Center (SLRC), which is affiliated with
the Sader Group. Under his leadership,
the SLRC has worked on a large number
of projects and publications, such as
serving as the project lead and senior
legal expert for the Kuwait Legal Portal
project, the project lead for the UAE
Ministry of Justice’s UAE Official Gazette
Digitisation Project, as well as the Abu
Dhabi Government e-laws project.
As well as his work with the firm and
the SLRC, since 2015 Sader has served
as vice president of the board of Leba-
non’s Brand Protection Group and is the
IP legal advisor for Egypt’s Arab Publish-
ers Association, the Lebanese Scholastic
Publishing Association, and the Emir-
ates Publishers Association. He’s also
considered one of the very few legal
strategists in the Arab region focusing
on the impact of AI and technology in
the legal field.
PETER SOMEKH
DLA PIPER
PETER SOMEKH IS DLA PIPER’S REGIONAL
managing partner, with experience in all
non-contentious aspects of corporate
insolvency and restructuring, acting
for construction firms, financial insti-
tutions, insolvency practitioners and
corporations.
Somekh has experience in analysing
construction projects, leading a team of
English and Arabic lawyers on options
available to lenders in the context of
distressed investments, and imple-
menting the preferred strategy.
Telephone: + 9714 438 6327
Website: dlapiper.com/en/middleeast
E-mail: peter.somekh@dlapiper.com
45

r Frank Afeaki
and Loren Holland
ENTREPRENEURS OF THE WEEK
GymNation’s Frank Afeaki
and Loren Holland
GymNation offers affordable memberships and flexible
no-contract membership options for fitness buffs in Dubai
There are over 800 health and
fitness concepts in the UAE,
but few that are really affordable.
So when industry experts Frank
Afeaki and Loren Holland came
to Dubai three years ago, they
found it hard to justify spending
AED5,000 on a membership.
Having both been part of
low-cost gym chains in Australia
(Crunch Fitness) and the UK
(Xercise4Less), they spotted a
gap in the UAE market for a
similar concept: GymNation,
which charges as little as
AED125 per month with no
upfront fees. Here is how they
46
Arabian Business shines a light on the all-important SME sector
in the region, from success stories and VC news to expert insights
plan on capturing a share of
the $380m fitness industry,
where only six percent of the
population are registered
members of a health club.
q WE MUST STAY TRUE
TO OUR GOALS OF
MAKING HEALTH AND
FITNESS AFFORDABLE”
Most gym membership
schemes have fixed fees, which
are generally higher than yours
and include additional upfront
payments. How will
GymNation operate without
these traditional payments?
Holland: The concept of
GymNation is based on the
low-cost, value-based model,
which has been a huge success
in Europe and the US in several
sectors including hotels and
airlines. Our model focuses on
essentials and cutting out
expensive frills. You won’t find a
sauna, steam room or swimming
pool at GymNation, but you will
find over 500 pieces of the latest
generation gym equipment,
more than 200 Les Mills classes
a month, a ladies-only fitness
section and ample free parking.
We also use a lot of technology
and web-based processes to
reduce our overheads.
What were the biggest
challenges you faced while
setting up the business,
especially as GymNation is
among the few that do not
require advance payments?
Afeaki: Our success is largely
dependent on location and
member convenience. Site
selection is something we were
never going to compromise on.
We looked at over 100 potential
locations over a six-month period
before selecting our first site on
Sheikh Zayed Road in Al Quoz, as
it offers huge space, easy access
to the main road networks and
free basement parking. It is also
an up-and-coming area with lots
of cafés and sports facilities.
Holland: If we had followed our
competitors in insisting on
annual upfront payments, it
would have given us the benefit
of cash flow. But ultimately, we
must stay true to our goals of
making health and fitness
affordable, and allowing
members to pay-as-they-go
on a monthly basis.
Vol. 19/07, February 2018
Do you have expansion plans?
Holland: The health and fitness
market in the UAE is huge and
growing rapidly, so our current
focus is to deliver on local
market potential. Given the
overwhelming demand during
our pre-sell, which has seen
2,000 members already sign
up, we believe there is an
opportunity for up to ten
GymNation sites across Dubai,
and we have tentatively started
to look at other emirates.
What was the costliest part
of developing the gym?
Holland: Setting up a 45,000 sq
ft gym requires a healthy capital
investment, and the business
model is very sensitive to cap-ex
and overheads. Controlling the
fixed costs, with rent being one
of the largest, is fundamental to
us. We have strict parameters
for each and every cost line and
these are continually monitored.
Providing memberships at one
third of the typical market rate,
while operating a profitable
business which delivers the
desired return on investment,
is a fine balance.
Was funding it a challenge?
Holland: We took an early
decision to find investment
partners who could support
us with long-term financial
investments. We decided to seek
partners from a real estate
background, as the long term
success of our business will be
heavily dependent upon access to
the right sites and getting the real
estate financial model correct.
arabianbusiness.com
u Stress, long hours at work and monotonous days are leading to burnout
EXPERT INSIGHT
How to avoid
burnout
A drop in motivation, a sense of
defeat and the inability to enjoy
growth are common traits
among entrepreneurs, who
often take on the majority of
the work load when starting
up their businesses. Jessica
Edwards, curator of co-working
space Next in Wyndham Dubai,
shares her insights on
combatting the factors that
eventually lead to mental and
physical burnout.
STA R T- U P S P OT L I G H T
u The photoshoots are available for anyone in any kind of environment
Start-up offers
affordable
photography
Online platform Lovographer,
a website that provides personal
photography on a budget to
residents and tourists, has
launched in Dubai.
1 Plan and track your
progress within set time
intervals: Every month, plan
short term goals, and focus on
“little wins”. If you have been
investing only in long-term goals,
it is inevitable you will feel let
down if you fall short.
2 Share your achievements
and frustrations: Most
entrepreneurs do not work in a
typical office environment, and
that has its own setbacks.
However, it helps to provide a
platform for you and your
employees where you can share
The service allows users to
book a professional personal
photographer to follow them
around the city and take photos
of them and their friends or
families. The idea is to provide
high quality photographs that
the common public would
normally not be able to take due
to expensive photography rates.
good and bad days with people
in a similar situation, such as
co-working spaces.
3 Find role models in others:
Entrepreneurs are great at
working independently and
drawing their own career paths,
but it is crucial to get inspired by
others as well.
4 Change your scenery:
Working environments have
a tremendous impact on the
quality of work and overall
morale. Working from the same
place, with the same view, during
the same hours enforces a sense
of monotony and can lead to
burnout. Work from a different
space to encourage new ideas.
5 Switch off: Power down your
phone, tablet and laptop. In the
age of social media, which has
given rise to connectivity
overload, it is crucial that you find
a way to disconnect at regular
intervals. Take a few hours away
from your desk to exercise.
S H O RT S
ETISALAT LAUNCHES
PLATFORM TO BOOST
SMBS IN UAE
Hello Business Hub in
Jumeirah Lake Towers
offers services ranging
from banking and
insurance to office
leasing and furniture.
Etisalat currently serves
over 300,000 Small and
Medium Enterprise
(SME) customers in
the UAE.
100,000
The number of new
businesses expected to
open in the UAE over the
next three years.
47
Liquid assets
Pampering: Four deluxe
de-stressing day spas in Dubai
Spend an entire day getting rid of jet lag, physical exhaustion, mental tension or
sleepless nights at these luxurious tension-reliving spas located across the city
1. The Spa at Five Palm
Jumeirah
It has one of the widest range
of treatments aimed at
specific types and areas
of trouble, such as jet lag
therapy, sleep improvement
and body de-stress
massages, as well as guided
meditation. Visitors can also
enjoy the adults-only rooftop
pool featuring hydrotherapy
jets that ease out any
remaining knots. The spa is
open from 10am-10pm, and
prices start at AED200.
2. The Spa at Palazzo
Versace Dubai
The glamorous spa, decked
out in white birch wood,
mother-of-pearl details and
Versace furnishings, is where
you go to spoil yourself.
We highly recommend the
1 2
48
Kundalini massage, which
delivers on its claims to be
“ideal for emotionally
exhausted souls”. Enjoy the
dreamy Jacuzzi situated
below a starry-lit ceiling,
before heading to the hotel’s
Italian-style pool with Roman
columns, signature Medusa
mosaics and Dubai skyline
views. The spa is open
between 9am- 11pm.
3. The Bulgari Spa at
Bulgari Resort Dubai
The recently opened hotel
boasts a rather pricey spa,
but the experience might
well be worth it, as visitors
can enjoy other facilities in
the 158,000 sqm property,
including an indoor heated
pool overseeing city views,
La Spiaggia beach club, and
a yacht club overlooking the
3 4
50-boat harbour. Treatments
at the spa live up to the
hotel’s luxurious brand, and
include five-hour “majestic”
hammam experiences.
4. Armani/Spa at Armani
Hotel, Burj Khalifa
With treatments tailored
to de-stress, the sprawling
luxury spa at Armani is an
ideal getaway for worn-out
individuals, with the Mu body
massage designed to relieve
physical and mental tension.
The design by fashion icon
Giorgio Armani makes it all
the more soothing, with
minimal yet lustrous
elements such as all-black
showers. The best part, of
course, is the chance to relax
at the outdoor pool in the
Burj Khalifa, where the hotel
is located.
ART
London concierge service
launches for Arabs clients
Arabic-speaking associates
can facilitate everything from
accommodation to transport
Black Global Concierge (BGC) claims
to be the first central London-based
luxury concierge service dedicated to
Arab clients in the city, with services
ranging from property searches and
security detail requirements to
transportation and chauffer services.
The founders have a combined 40
years’ experience working with Arab
clients, and have represented royal
family members and heads of state.
STYLE
Palestinian art exhibition
takes place in Dubai
“El Beit” explores themes of
identity through painting,
photography and sculpture
Tabari Artspace gallery in Dubai will
showcase artwork that reflects on lost
identity and displacement in Palestine.
“El Beit”, meaning “the home”, will
continue until March 8, and will feature
Palestinian artists Hazem Harb,
Mohammed Joha and Sliman
Mansour. The contemporary artists
explore themes of identity and
Palestinian society through painting,
photography and sculpture.
Vol. 19/07, February 2018
RESTAURANT REVIEW

Jean-Georges restaurant in
Beverly Hills: as fine as it gets
The new Waldorf Astoria partners with French Chef Jean-Georges to mix
South American flavours and European classics for farm-to-table dishes
By Vered Nisim

First impressions are everything,

and the new Waldorf Astoria in
Beverly Hills has taken the
notion to a whole other level.
Upon driving up to the hotel’s
valet parking, three white-gloved
attendants appear at our car to
escort us to the main, golden
double doors. The new property
has an upscale ambiance indeed,
but the restaurant has a
laid-back Californian vibe:
modestly furnished decor, palm
tree cushions and organic
outdoor seating.
Our culinary expert (AKA our
waiter) and his assistant for the
night help to explain the menu
and recommend dishes. What we
are given is a fabulous medley of
contemporary South American
flavours and European classics in u The refined, airy interior of the latest Jean-Georges restaurant
an elegant farm-to-table
experience. Our first course is
the avocado carpaccio serrano
broccoli and spicy herbal
broth. Don’t let the name
“Even though it is To conclude our meal,
we are brought a piece of
chilli cilantro and lime pizza, of the dish fool you, as it is on the expensive warm dark chocolate cake with
otherwise known as the avocado anything but basic. The fish side, every dollar homemade vanilla bean ice
toast. With its bright green is perfectly cooked with hints cream. The rich chocolate is
spirals, it is almost too beautiful of sweetness penetrated by
spent is definitely paired with a hint of sea salt
to eat, as the crispy sourdough a burst of tart spice. well worth it” and pure vanilla bean.
aligned with the soft texture of The restaurant’s service is
the avocado results in a new unparalleled, while the food is
spin on the basic avocado toast. delicious. Even though it is on the
It tastes as good as it looks. expensive side, every dollar spent
Next, we try the organic kale is definitely well worth it. You are
and watercress salad not just paying for the food, you
with snap peas. While I know in are paying for the experience of a
advance it is not going to be my Jean-Georges restaurant. And if
favourite – I am not big on kale you are up for something more
– it is a great choice if you are casual, or want a place with
into the vegetable. I choose to stunning scenery, head to the
stick to my avocado toast. hotel roof for Jean-George’s
What arrives next is The Rooftop lounge.
something that does not Bill for two people (without
disappoint, the black cod with u Avocado carpaccio serrano chilli cilantro and lime pizza beverages): $114

arabianbusiness.com 49
T R I B U T E | BY TALIB AL HINAI, EMIRATI SCIENTIST AND INVENTOR
d Sheikh Zayed with Sheikh Rashid Bin Saeed Al Maktoum
(left) and Sheikh Ahmad bin Rashid Al Mu’alla (right)
“Anything is possible”
How HH Sheikh Zayed Bin Sultan Al Nahyan taught
the nation to believe in itself
THE FIRST MEMORY I HAVE
of Sheikh Zayed, may God
bless his soul, is from a story
we learned in the classroom
as small children. We were
told how Sheikh Zayed was
driving around the city one
afternoon when he saw
a girl crying outside her
school. He stopped the car,
approached the girl and
found out that her father
was late picking up her
that day. So he sat with her
until the father was able to
fetch her. That image of him
sitting there with her – there
was a photograph of them
together in our textbooks –
is engraved in my memory.
Although I never met
Sheikh Zayed, he was always
present in our lives. We
knew him as “Baba Zayed”
and he was almost as much
a father figure to us as our
biological fathers. You
looked up to him as your
50
childhood hero. I think that
feeling was universal among
Emirati and non-Emirati
children; we all shared this
same sentiment.
What I learned from him
– and it’s a lesson that has
stayed with me ever since –
is the belief that anything is
possible. Sheikh Zayed was
told back in the 1950s that
there was no way he could
build anything here in the
desert. But he challenged
that notion and turned the
country into his dream of a
paradise. Knowing how this
u Talib Al Hinai
story of ours began tells us
that having a strong belief
in ourselves can help us
achieve anything today.
And this is especially
resonant when you consider
that this was 50 years ago,
when man was not yet on
the moon and the UAE not
even a country. In fact, most
of the families back then
didn’t even have running
water. The fact that five
decades on from this time
the UAE is sponsoring a
probe to reach Mars is
something that speaks
volumes for what it has
been able to achieve.
Sheikh Zayed also once
said that it’s men who
make the factories and the
machines, not the other way
round. That belief in human
capital has manifested itself
in the UAE’s investment in
education and healthcare.
The doors were open to
scholarships, particularly
when the nation needed to
build that capability the most.
My own desire to study
has always been driven in
part by the motivation of his
message. The opportunities
I’ve received are the result of
his work, and if we are able
to give back even 10 percent
of what the UAE has given
us then I would feel very
happy – though I don’t think
we would ever be able to
give back what the country
has done for us. But we can
always strive to do our best.
When you live abroad, as
I have done while studying
in the UK and US, there
is almost an assumption
that you must be unhappy
with the status quo. But we
Emiratis know that, even
today, we can to go and
meet our leaders at an open
majlis. We know that our
voice is important and that
we can have our concerns
listened to. This is quite
unique and it has created
a very strong bond that
holds the people and the
leadership together.
There’s a story that
someone once suggested
to Sheikh Zayed that there
were too many foreigners
in the country. He replied
that “the land is God’s
land and the money is
God’s money”. That speaks
volumes for how he was
open to taking in the best of
what people have to offer.
And this again comes from
his belief in human capital.
PHOTO: NATIONAL ARCHIVES
Sheikh Zayed genuinely
loved humanity. He really
believed that human beings
can achieve anything if they
set their mind to it.
Vol. 19/07, February 2018
 2018
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