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Sprache. Kultur. Deutschland. EDITORIAL

he story of 13-year-old Suliman Salem drew sympathy from all quarters – in late September, surgeons in Bremen removed a piece of shrapnel from the Libyan T teenager’s back. He’s still a paraplegic, but at least he’s alive. The war in Libya is over – for now – and has disappeared from the headlines. But the victims have not reco- c o vered so quickly, and Libya’s health care system is falling apart. It needs help if it is to be v e r i able to treat people, and it needs partners to participate in establishing a modern health l l u s t r care system (page 38). a t i o n : L e s p r e n One by one, the oil pumps are starting up again, and in the long term, the Libyans g e r will be able to pay handsomely for medical expertise – we have therefore devoted this issue of zenith to the health care sector. AGOCO is sure to have a prominent role: for decades it was considered a reliable, though neglected, stepchild of Muammar al-Gaddafi’s National Oil Company. »We were told what to do; we had to deliver,« says spokesman Abdeljalili M. Mayuf (page 30). But then the company stood up to be counted, making its mark on the global political scene by breaking with Gaddafi at the beginning of the uprising in eastern Libya and selling oil to the rebels. Was the fall of the regime an »AGOCO revolu- tion«? The Russians and Chinese, who supported Gaddafi to the end, will find it »parti- cularly hard going in Libya now«, warns Mayuf. His words give pause for thought not only for the Russian energy giant Gazprom but also for several German compa- nies. BASF subsidiary Wintershall, for example, is producing in Libya again, but also has a joint venture there with Gazprom. Will contracts that were once considered se- cure now be reviewed?

All eyes are on the upheaval taking place in North Africa – the German government is among those who want to support the change with economic and development aid. This leaves German investors in countries that have not experienced the Arab Spring feeling marooned. As Christoph Partsch points out, there is plenty of »low- hanging fruit« ripe for the picking in Algeria (page 24). But also the »oil dorado« of Angola is also worth a closer look (page 26). Business pioneers have been enthusing about opportunities in Iraq for years, but will the investment promises still be valid after 2012? Iraq’s future once the US troops depart is truly uncharted territory, but that is precisely why Ingo Sahlmann, an entrepreneur in a variety of sectors, believes now is the time to take risks (page 12). The recently unveiled »German City« in Bagdad is a beacon of daring and audacity – a new suburb to host businesses and 25,000 residents. We will report regularly on progress in the coming year.

There is much to do in Africa, the Middle East, and South and Central Asia, so from next year, zenith-BusinessReport will appear bi-monthly, plus special editions.

BusinessReport 4/2011 03 CONTENTS

PUBLISHED BY Deutscher Levante Verlag GmbH UPDATES FOCUS HEALTH CARE Linienstrasse 106 D-10115 Berlin 06 Aluminium, gems, and bonus miles 38 The Libyan patient News from India to Niger A health care system confronts collapse phone: +49.30.3983.5188-0 e-mail: [email protected] PROFILE 42 Good genes required for Dubai web: www.zenithonline.de 12 »When things get quiet, it’s too late!« The Emirate tries to attract biotechnology

EDITOR-IN-CHIEF: Ingo Sahlmann establishes enterprises in Iraq Daniel Gerlach 44 Saudization overdue?

MANAGING EDITOR: Nursing crisis in the Kingdom Marcus Mohr MONEY AND POWER 46 The superchip EDITORS: 14 Expanding into the abyss Mohamed Amjahid The Palestinian economy The UAE want all electronic files Robert Chatterjee, Nils Metzger thrives on credit. When will it crash? 48 Would you like a facelift with that? AUTHORS AND CORRESPONDENTS: Mathias Brüggmann, Dr. Renate 17 Back to school after the Arab Spring Plastic surgery in Beirut: new bust and Dieterich, Dr. Christian Hülshörster, Berlin invests in educational cooperation nose can be bought on credit Christoph Dreyer, Yasemin Ergin, Andreas Hackl, Alexander von Hahn, 18 »Worse than drought« CONSUMPTION Dr. Christoph Partsch, Romy Rösner, Katrin Sandmann, Christoph Sydow, For months Moroccans have been protesting 50 Persil vs Tide, Apple vs ABM against water giant Veolia Björn Zimprich Brands wars for the Middle East 22 The cycle of cynicism There’s a problem with sanctionig Iran 52 Turkish spirit – global standards The ads market at the Bosporus

ILLUSTRATIONS: 24 Who’s afraid of Algiers? Lesprenger German businesses pay the bill for not having ARTS AND BUSINESS had a revolution in Algeria ART DIRECTOR: 56 Treading softly Lesprenger, Berlin 26 Our deep belief in helping Why Oriental carpets are so sought after PRINTED BY: Kazakhstan’s ambassador to Europe and GCC GmbH & Co. KG Nato is proud of his homeland’s achievements 58 MY ... BEIRUT ADVERTISMENTS AND DISTRIBUTION: Clubs, restaurants, and recommendations [email protected] for the extended business trip

ADVERTISEMENTS RATES: COMMODITIES No. 2, 1 January 2011 62 PERSONAL ASSISTANT 28 »We want people to see us as a second Dubai« Agenda entries and latest news How money is made in oil dorado Angola PRINT RUN: fron the sun deck English edition: 14,000 German edition: 6,000 32 »It would be very difficult for provided with Safi Airways flights Russians and Chinese« Abdeljalil M. Mayuf, information director of Libya’s COPYRIGHT: All rights reserved. Neither this publi- revolutionary oil company AGOCO, interviewed cation nor any part of it may be re- produced or transmitted in any form 36 Challenge the Indus or by any means without prior per- Pakistan’s cotton industry expects the next flood mission. Named articles present their authors’ views. ISSN 2193-0481

illustration: FXFOWLE

04 BusinessReport 4/2011

UPDATES Miles & More halal style? Germans living in the Gulf States can pass air miles on to family members

t is estimated that airline bonus miles worldwide are worth several hundred billion euros – hard currency that can so- I metimes be quite difficult to spend. Occasional flyers often don’t accumulate enough points in their accounts to ‘spend’ them on a flight before they expire, and the terms and conditions have become a hot topic in Internet forums. Bonus miles are strictly linked to the account holder only and not transferrable, even though flight rewards can be gifted to others. But some airlines in the Middle East are making excep- tions: Lufthansa, which has been operating in the Gulf and in Pa- kistan, Iran, Lebanon and Egypt, is one airline that now allows the »head of the household« to enrol his wives, children, relati- ves and domestic employees in its bonus »Miles & More family programme«. Any miles they accrue are credited to his account. If you’re male and the head of a household residing in Dubai, According to Lufthansa spokesman Jan Bärwalde, »this is the on- whether expat or local, you can now earn air miles from trips to ly region for which we have made an exception, and it is for pu- and from Dubai taken by members of your family. rely cultural reasons«. When zenith asked whether the airline’s special offer had an- ything to do with certain aspects of sharia (in that a woman can travel only with her husband’s permission, according to some ultraorthodox Jews, or American Mormons able to participate. schools of thought within Islam), the idea was rejected. Rather, It is not cultural practices that determine who may participate, Lufthansa was simply adapting to local customs. but the main place of residence. Germans – if they live in Dubai The programme is not being offered to Muslims in Europe, – may also accumulate »miles« based on flights made by »those Africa or Asia, it is pointed out. Nor are tribal leaders in Yemen, under their protection«.

FIGURED

… is what analysts are predicting for Ni- rights, the China National Petroleum ger for 2012. So far, the country’s per ca- Company. pita GDP has ranked among the lowest Early last year, Niger was inadvertently 12.5 % in the world. The Sahel republic’s only responsible for the price of oil going sky- claim to fame is its deposits of uranium, high when reports of an alleged milita- which French nuclear power company ry putsch in the capital, Niamey, trigge- economic Areva is exploiting. Oil production is red prompt action by American com- being ramped up in the Agadem Block modities speculators. But they had growth ... in western Niger, and there are already confused Niger with its neighbour, Ni- reports of disputes between the govern- geria, one of the world’s biggest expor- ment and the holder of the exploitation ters of oil.

06 BusinessReport 4/2011 UPDATES p p i i c c t t u u r r e e : : E S m h e e n r a g l h d u s n f g o r L E i n l e / p h l Emerald fever i a c n e n t s s e d b y C r e a from the East t i v e C o

m Celebrity events trigger a boom in trade in m o

n colourful precious stones – Bollywood joins in s A t t r i b u The price of emeralds, rubies and sapphi- the stone with injections of resin that only t i o n

- res rose considerably in 2011 – at some po- become visible when the stone is heated,« N o n

C ints, the world average price for even a me- says one appraiser. o m dium-quality carat was approximately 20 Ever since Angelina Jolie attended the m e r c to 25 per cent more than it was a year ear- Oscars in 2009 sporting high-carat emerald i

a Indian film star Madhuri Dixit is the l - N lier. Volatile stock market prices and ex- earrings by US designer Lorraine Schwartz, o »face« of the emerald industry. D e

r change rates made precious gems a finan- demand has rocketed. »Schwartz triggered i v s

2 cially attractive investment as well as a be- an emerald euphoria that is still strong,« . 0

G autiful one. Mainly, however, it was growing says Menachem Jundef, an internationally market in India, which has always been a lu- e n e r

i numbers of nouveau riche Indians and renowned jewellery dealer based in Berlin. crative one for precious stones. Holding c Chinese that pumped up the market. The »Middleton Effect«, based on the company Pallinghurst Resources, which is Trade in coloured gems, warn the ex- sapphire ring with which Prince William investing in the exploitation of emeralds, perts, is much more speculative and risky proposed to Kate Middleton, created simi- rubies and amethysts in Zambia and Mo- than trade in diamonds: it attracts new de- lar momentum. zambique, says it intends to do so in an en- alers who compete with the old hands and In 2011, the finest sapphires reached top vironmentally friendly way and will direct don’t always pay enough attention to qua- prices of EUR 50,000 per carat. Emerald some of the profits towards reforestation lity. »Sometimes they even hide defects in dealers now want to fan the flames of the and promoting biodiversity. i l l u s t r a t i o n : H

a Its fiercest competitor is the Qatari com- d i n

u Legislation pany Qatalum. Free of the former re- g r o

h strictions on how it can invest, DUBAL is o to fit the goal now better placed to compete for the scar- ce bauxite deposits in Australia and South Aluminium giant DUBAL allowed America. At the beginning of November, to issue bonds and expand Mubadala signed off a contract for the Sheik Mohammed al-Maktoum has con- production of pet coke in Jiangsu, China verted huge industrial group DUBAL to a – Dubai is not involved. Behind the sce- new legal form. The former »Dubai Alu- nes, the two emirates are vying for control minium Company« is now known as Du- of EMAL. In March 2011 it was revealed bai Aluminium Corporation but is still sta- that Abu Dhabi’s offer to its neighbour of te owned. Previously, DUBAL was not per- shares in DUBAL, and therefore a greater mitted to make investments outside share in EMAL, had fallen through. Dubai, hence its 2007 joint venture with The existence of the new DUBAL raises The Gulf States are competing for the best Abu Dhabi government fund Mubadala: interesting questions about its potential in- industrial location for aluminium. the result, EMAL, soon became a global volvement in other countries. Now that it Sheik Mohammed is intent on winning. player and is to open the world’s largest can issue bonds, it will be able to grow in aluminium smelter in Abu Dhabi in 2014. leaps and bounds.

BusinessReport 4/2011 07 UPDATES

ARCHITECTURE

08 BusinessReport 4/2011 UPDATES

Museum corporate style

The plans abound with the trendiest terms for tenders for major public construction projects: The »Museum of the Built Environment« that New York architectural firm FXFOWLE is planning in Saudi Arabia will showcase »how ancient and modern ideas of sustainability influence the future of an environment shaped by humans«

FXFOWLE’s concept of the form of the museum is inspired by the world cultural heritage cities Madain Salih (Al-Hijr) and at-Turaif, which comprise religious buildings and monumental tombs in the middle of the desert. One would hope that the museum will have a livelier feel. The façade will trigger associa- tions with erosion and cut stone.

Founded in 1979 by Bruce S. Fowle, the firm has made a name for itself on the design scene as a reliable industrial enterprise rather than for stylistic innovation. The opening date has been set for 2014. rendering: FXFOWLE

BusinessReport 4/2011 09 UPDATES

ARCHITECTURE

The plan sounds mind-bogglingly impressive but the designers at FXFOWLE seem content to be vague about detail at this stage. Even the content of the exhibits is to be a surprise. But it is definitely going ahead – excavations for the foundations in the newly planned King Abdullah Financial District of Riyadh started a few weeks ago. The museum will also have an auditorium and a monorail station. The useable area will be approximately 34,000 square metres. rendering: FXFOWLE

10 BusinessReport 4/2011

PROFILE

FORTUNE p i c t u r e : p r i v a t e »When things get quiet, it’s too late!«

Ingo Sahlmann runs a restaurant, a construction company and a business services company in Baghdad. His first trip to Iraq took place against the background of a very sensitive mission. What happened next was totally unexpected

Ingo Sahlmann: the guests arrived at his wedding in armoured vehicles. by Katrin Sandmann

hen coffee cups from a cer- most Iraqis who, of course, never even tain restaurant become cove- see it unless they hold one of the highly W ted objects, you know the re- sought-after access passes. staurateur is doing something right. The Ingo Sahlmann, 49, a restaurateur and cups from »Dojo’s Diner« are prestige ob- businessman from Essen, Germany, has a jects – even found nestled amongst fami- blue access pass that opens virtually any »Mortar rounds, ly photos on the desks of German diplo- door. A blue pass signifies that the holder mats at the embassy in Baghdad. »The re- has made his mark, is well connected in two or three staurant is one of the few places where the political, business and diplomatic you can go for a quiet beer and feel rela- communities. times a week« tively safe of an evening.« Sahlmann’s company, GSI Business Ser- Dojo’s Diner is situated in the inter- vices, began in 2007 with a rather mo- national zone, formerly known as the dest contract – to supply 5,000 screws to »Green Zone«. Since the war began in the US embassy in Baghdad. »The profit 2003, the suburb, home to most govern- was something like 500 dollars,« he ment buildings, foreign embassies and laughs. It was six months before he was company headquarters, has been walled able to pay his staff. But GSI went on to in and subject to tight security. To put it bigger things, including construction, ser- politely, the place feels unreal, out of vices and hotel and restaurant operations. touch with the realities of daily life for GSI provides accommodation for US-

12 BusinessReport 4/2011 PROFILE p i c t u r e : A s h l e y

Pursuing profit B r o k o p

where risk is at its / U S A i r

highest F o r c e

Until 2008, there were almost daily attacks in Baghdad’s international zone. Nowadays the suburb is comparatively safe.

AID in Baghdad and containers for a Na- two or three times a week.« He leaves the One can imagine that a cool head, coupled to training centre, and has numerous ser- zone only rarely, as the risk of being kid- with self-confidence and faith in God, is vice contracts within the UN compound. napped is still very high. the prerequisite for moving a business to Sahlmann tells us he has around 100 em- His company is keen to provide con- Baghdad. Sahlmann has all three. With a ployees, but is silent regarding turnover sultancy services to foreign companies, background in business studies, he was a and profit. He’s a member of the Private especially from Germany, that want to business development manager for a Ger- Sector Development Council, a World get involved in business in Iraq. It alre- man armaments company, seeking new Bank initiative to promote private enter- ady provides logistical support to seve- lines of business in northern Iraq, a Kur- prise in Iraq. ral Middle Eastern companies and one dish area, in 2006. Nothing came of it, but Tall and powerful-looking, Sahlmann from the United States, which are set- during his travels he fell in love with an stands out in a crowd – as do his projects. ting up representative offices. »Partners- American colleague, who had been in Iraq The latest is a business hotel right next to hip with the Iraqis is difficult. It’s not for some time already. At a time when ter- the restaurant, the room rate USD 300 per enough just to turn up every two months rorist groups were bombing churches in night. Situated in the international zone, for a few days.« Iraq, they got married in one, Sahlmann it could become a good meeting point for But even the best-laid plans turn to cu- sporting a rose in his buttonhole, his bri- German business people. If they turn up, stard from time to time – on a daily ba- de in a white dress. The guests travelled to that is. The really large companies are the- sis, in fact. Right now, the authorities ha- the reception in central Baghdad in ar- re, of course, although often under anot- ve temporarily closed the restaurant and moured vehicles. her name and represented by Iraqis. But there are no hamburgers or beer to be had Nobody in the Baghdad business com- medium-sized companies are noticeable at Dojo’s Diner. Sahlmann has little to say munity knows what will happen after US for their absence. Sahlmann confirms what on the subject. Officially, it has to do with troops leave Iraq at the end of the year. we’ve heard many times before: Turkish permits. Regular customers suspect that a Thus far in his career, however, Sahl- companies are in the lead, closely followed jealous competitor is behind it. »We’re mann has always found business in the by the French. »Only the Germans are he- using the down time to redecorate and midst of risk. »By the time things have sitating,« says the frustrated entrepreneur. make improvements,« says Sahlmann. quietened down here, it will be too late »Of course it’s not particularly safe here. »We’ll probably be open again next week to get involved in a big way,« is how he We get mortar rounds or rocket attacks already.« sees the future.

BusinessReport 4/2011 13 MONEY AND POWER

DEBTS p i c t u r e : d g e

Expanding into the abyss The Palestinian economy subsists thanks to external aid, but funds seldom arrive on time and are contingent on the bigger political picture. The present boom is being financed entirely by borrowed money – and economists are warning that the system will collapse by Andreas Hackl

zz Tawil takes a felt pen and draws a wing,« says Tawil, wearing the grim ex- big circle on the flip chart in his of- pression of an economist predicting a I fice. The little arrows along the line stock market crash. represent the individual elements within Tawil is not the only one to hold this a stand-alone system. »The Palestinian view. More and more experts are warning Boom town Ramallah. The economy in the West economy is a closed monetary cycle,« he that the system is fatally reliant on politi- Bank is on the up and up. Prices for consumer explains. Tawil, the managing director of cal developments and the reliability or goods and property are rising. And Palestinians Sharakeh, a micro financing network in otherwise of donors, who are not always are borrowing money so they can participate. Ramallah, adds symbols to the diagram: cooperative and sometimes even default. It a worker, whose wages are paid by a con- was October before the Authority received struction company; the construction com- USD 200 million from Saudi Arabia that pany, which contracts to the Palestinian had been promised for March 2011. Alge- their jobs as a result. It was even worse in Authority; and the Authority itself, which ria and Kuwait were months behind on 2006, when the EU and the USA cancelled finances its projects with funds donated by payments. The US Congress scratched USD more than USD 1 billion in aid after Ha- the European Union, the United States, 200 million to punish the Palestinian go- mas won the elections. If international do- Saudi Arabia and other Arab states. »Apart vernment for applying for membership of nors were to respond to contemporary po- from a few small investments, external aid the United Nations. According to official litical events with a similar boycott, the ef- is the only thing that keeps the money flo- statistics, several hundred Palestinians lost fects on the Palestinian economy could be

14 BusinessReport 4/2011 MONEY AND POWER

neration has no desire at all to be inde- pendent or take risks. »Set up your own company? Forget it! Politically, we’ve end- ed up with a youth culture that puts a sta- ble income above national resistance and the future of Palestine,« says Izz Tawil, who- se micro financing network also lends mo- ney to people who do not have a perma- nent income. According to Tawil, more than 42,000 low-income earners, or 25 to 30 per cent of all borrowers, draw down lo- ans from 11 micro finance organisations. »Our clients are particularly at risk in ti- mes of crisis. A woman who gets a loan to start a business has no chance of success if the economy does not get an injection of funds from outside.« That’s just how it is in those parts of the system where there is no money at all. »The banks will survive«

The weakest link in the chain of depen- dence, however, is the Palestinian Autho- fatal, not least because it has become over- a vagabond, but to achieve that he’ll have rity itself. By far the biggest Palestinian ly reliant on loans, which have become a to take out a loan. borrower, it owes a total of USD 1.016 bil- way of life at all levels of the economy. A monthly salary of USD 350 is enough lion. More than a third of the USD 3.4 The worried financial expert does not to borrow USD 10,000,« explains a banker billion of current credit relates to admi- need to look far afield for evidence of this at the Arab Bank in Ramallah – where, it nistration. If administrative employees are dependence: his receptionist at the Sha- seems, everybody lives on borrowed mo- paid late, or paid only half their wages, as rakeh office, 24-year-old Muhammad, ney. Cars, houses and even mobile tele- happens all too often, their own loans will earns USD 300 a month. A second job in phones can all be purchased with loans, so rapidly mount up and become a serious the afternoons and evenings in a coffee there is an enormous temptation to indul- poverty trap. house earns him an extra USD 400. Soon ge. There is a downside to the ‘credit cul- A severe crisis like that of 2006, with aid to become engaged, he needs an apart- ture’,however, in that banks will only con- non-existent, could have fatal consequen- ment and a car, which every married man sider borrowers creditworthy if they have ces for the compartmentalised economy. is obliged to have if he is not to look like steady employment. Hence the younger ge- The big question is whether insolvency on >>

BusinessReport 4/2011 15 MONEY AND POWER

the part of the Palestinian Authority would zed businesses more than anyone, accor- Ramallah has all the appearances of a boom trigger a chain reaction that would also ding to their umbrella association, the town. On the face of it, there is nothing ab- bring the banks down. Palestinian Contractors Union (PCU), out daily life to suggest that the realities of A total of 18 banks are represented in the which represents the 750 local compa- the Israeli occupation are curbing the po- West Bank and the Gaza Strip by 223 bran- nies that pay the wages and salaries of 28 tential of the West Bank economy and par- ches. Ten of the banks are foreign and eight to 30 per cent of all Palestinian employ- ticularly that of the Gaza Strip. However, are Palestinian. The banks are the strongest ees. The construction sector represents »until we have an independent Palestinian link in the system of interlocking depen- 28 per cent of GDP, says PCU spokes- state, we will be dependent on international dencies. Shireen al-Ahmad from the Pale- man Adal Oudah, including those who aid,« comments Ghassan Khatib, a spokes- stine Monetary Authority (PMA) believes benefit indirectly. man for the PA, on the economic outlook. He it is highly unlikely that any credit bubble The vast majority (80 per cent) of the says that, to keep the system functioning in could actually cause a crash in the current companies that undertook construction the meantime, they are working on revising environment. »The banks can cope with projects on behalf of the authorities we- the government’s budget. It’s a promise that huge shocks. People trust the banks and re not paid money owing to them since not all Palestinian companies believe. are investing in them more and more. And March until eight months later. Many the loans are building up,« she says. The to- were forced to borrow more money – Wouldn’t it be better tal capital of Palestinian banks has risen to with bad outcomes in some cases: »In the around USD 9 billion, while the percenta- last two years, borrowing more money to turn down offers of ge of borrowers unable to repay their lo- has sent 30 companies into bankruptcy.« money from outside? ans has sunk from 14.5 to 2.6. Smaller The smaller construction companies are banks, which are more vulnerable during the worst hit, as they invest a great deal a crisis, are tending to merge with larger in order to implement a project, but very Some take a more radical position regar- ones, she says. quickly encounter problems with cash ding external aid: Bashar al-Masri, for Nevertheless, the Authority’s dependence flow. »In situations like that, everything example, is a Palestinian billionaire who is on aid creates a high risk. »More than 40 you earn from a project ends up in the building a stand-alone city for 40,000 re- per cent of the credit portfolios of all banks banks’ hands,« complains Oudah. »Banks sidents in the West Bank, by the name of is linked to the PA and its employees. A are not going to cooperate. In fact, they Rawabi. As far as Masri is concerned, aid political shock like the one in 2006 would actually do quite well out of the govern- from other countries should be stopped turn that 40 per cent into a risk factor over- ment’s payments crisis. But the private altogether, so that a Palestinian economy night,« al-Ahmad points out. sector could work with us if this finan- can develop. »Things will have to get wor- That kind of scenario strikes fear in cial uncertainty continues or even gets se in order to get better,« he says, quoting the hearts of the owners of medium-si- worse.« an ancient Arabic proverb, stating that Pa- lestinians will have to make sacrifices in order to give up external assistance. He wants his mega-project – funded almost Selected economic data from the Palestinian Autonomous Regions entirely by USD 800 million from Qatari Diar Real Estate – to be a model of politi- 2008 2009 2010 cally independent business development. gross domestic product (in USD billions) – 13.0 – The funder is owned by Qatar’s ruling fa- gross domestic product (change from previous year, as a percentage) – 8.0 – mily, but he says there is no question of population (in millions) – 3.9 4.2 this being another form of politically mo- imported goods and services (in USD billions) 3.8 – – tivated external aid. He believes that the exported goods and services (in USD billions) 0.5 – – investment in Rawabi will pay off for the inflation rate (change from previous year, as a percentage) – 2.5 6.0 investors over the long term. »We Palesti- current account balance (in USD billions) 12.0 12.8 – nians are stubborn,« he says, waving out the current account balance (change from previous year, as a percentage) – 6.7 – window towards the Israeli settlement of Ateret, on a nearby hill. »One day, that sett- lement will be a suburb on the outskirts of sources: CIA World Factbook; IMF (International Financial Statistics) Rawabi.«

16 BusinessReport 4/2011 MONEY AND POWER

DEVELOPMENT

cation generally compared to other countries in the same region. According to UNICEF, Back to school 34 per cent of the Egyptian population is il- literate, while the figure for Tunisia is only 22 per cent. Almost 358,000 of the country’s after the Arab Spring 10.5 million citizens are currently studying at a tertiary institute and, according to the If the change in Egypt and Tunisia is to take hold, Tunisian statistics authority, about 60 per cent of the students are women. With their academics need opportunities on the job market. French heritage, graduates also have excel- The German government is putting 50 million euros lent command of a European language, and they find it easier than their Egyptian coun- a year towards transformation partnerships, and terparts do to get their voices heard in glo- much of it is going into cooperation in tertiary bal economic dialogue. But more and more Tunisian acade- education by Renate Dieterich and Christian Hülshörster mics are setting their sights on Germany, where the DAAD has been providing a programme aimed at top Tunisian stu- ermany and Egypt can look back in Tahrir Square in January 2011 were young dents in engineering-related disciplines on more than a century of coo- tertiary students or graduates whose despair for the last 30 years. G peration in the areas of educa- at the dearth of job prospects emboldened Cooperation between German and Tu- tion and research – from Tübingen doc- them to protest against the systems in their nisian universities is set to become even tor Theodor Bilharz, who discovered the respective countries. When 52 per cent of the closer, with EUR 50 million budgeted for cause of bilharzia (schistosomiasis) in the both 2012 and 2013 for transformation Nile in the 18th century, to the founding partnerships. Subject to approval by the of German schools early in the 20th cen- More scholarships German Bundestag, much of this money tury, to the German University in Cairo in and better quality will be put towards cooperation at the ter- 2003. The German Archaeological Insti- tiary level. The DAAD is preparing new tute has been involved in Egypt for more assurance tenders designed specifically to strengthen than 100 years, promoting quality coope- local structures in the long term by me- ration in cultural and educational policy population is aged under 25, but youth un- ans of university partnerships. Particular together with the Goethe Institute and the employment, especially among academics, attention will be paid to quality assuran- German Academic Exchange Service (DA- is running at 30 per cent and higher, poli- ce for the courses offered and to the em- AD). The »German-Egyptian Year of tics and the social order become explosive. ployability of graduates. Germany has Science and Technology 2007« gave birth Hence education in Egypt and Tunisia much to offer here, as it already runs bi- to the German-Egyptian Research Fund ranks very high on the German govern- cultural courses in Cairo and Amman in and GERLS, a jointly funded scholarship ment’s list of priorities for transformational which Germans and locals study side by programme for Egyptian doctoral stu- partnership projects. In a guest editorial for side to gain dual qualifications that pre- dents that awards up to 81 scholarships the Egyptian daily Al-Masri al-Youm in Fe- pare them for a globalised job market. each year for extended stays in Germany. bruary this year, German foreign minister Despite their long history together, the Guido Westerwelle promised young Egyp- Dr Renate Dieterich heads the new DAAD significance of the recent Arab Spring for the tians »more academic exchange opportu- section entitled »German-Arabic Transfor- future of German-Egyptian cooperation is nities, more scholarships and vocational mational Partnership – Cultural Dialogue«. not yet clear. What is very clear is that the training initiatives«. revolutionary movements in Tunisia and Similar support will be channelled to- Dr Christian Hülshörster heads the DAAD Egypt both have a lot to do with education. wards Tunisia, which provides good uni- group entitled »North Africa and the Middle Many of the demonstrators who assembled versity education and a high level of edu- East«.

BusinessReport 4/2011 17 MONEY AND POWER p i c t u r e : d g e

The estuary of the river Bou Regreg in Rabat. A new marina is under construction here, and a comfortable tram links the suburbs. Rabat is developing – but poor quality basic services are giving rise to protests.

WATER SUPPLY »Worse than drought«

French group Veolia Environnement is the global leader in water management, its success based on public-private partnerships with local authorities. But customers in Morocco are rebelling, accusing Veolia of negligence and even corruption

by Mohamed Amjahid

18 BusinessReport 4/2011 MONEY AND POWER

ike thousands of other residents of Rabat, lied in the pipes, before the water hits the sea. »Veo- Morocco’s capital city, Abdeslam Belfhil has lia isn’t interested, because conventional chemical pu- L taken to the streets almost every Sunday for rification of waste water is its core business.« In Ra- the last six months. Belfhil is the local coordinator bat, however, even the chemicals are apparently app- for AMDH, a Moroccan human rights organisa- lied far too sparingly. tion. But these demonstrations, unlike those in ot- Rabat’s residents only really become aware of the her Arab countries, are not about bringing down a problem during the hot summer months when they dictator. Most Moroccans hold their king in very go swimming to cool off – and emerge smelling of hu- high esteem, unconditionally, uncritically. Here on man and industrial waste. But when safe drinking wa- the Atlantic, at the picturesque estuary of the Bou ter becomes more expensive, everyone is affected, espe- Regreg river, demonstrators are shining the spotlight cially poor people. In a contract with the municipal on another »dark power«, one that usually represents authority in 2002, Veolia was promised a special sup- something good: the French utility company Veolia plement of one dirham per cubic metre of water. The Environnement. special arrangement was limited to a 12-month peri- »Veolia, dégage – Veolia, piss off!« – says a placard. od, but »Veolia is still awarding itself the supplement Picking up the refrain, Belfhil says: »In Tunisia and and nobody is doing anything about it,« says Mehdi Egypt, the people won through, and the stakes were Lhlou, an economist from the National Institute for even higher there!« Statistics and Applied Economics (INSEA) in Rabat. In Rabat,Veolia not only manages potable water and Since Veolia came on the scene, the price of water waste water, but various divisions of the group are al- has gone up. Water is charged for by the cubic metre so involved in waste removal, power supply and pu- everywhere in Morocco, so users pay more the more blic transport. It may not sound unusual for a city li- they consume. But customers in the other main cities, ke Rabat to have problems with the way public facili- including Fez and Marrakesh, where water has not yet ties are organised, but dissatisfaction with poor water been partially privatised, pay less than half as much management has increased markedly in the last few as those in »Veolia’s« cities, Rabat and Tangiers. In months. Casablanca, where Suez Environnement, the other While most coastal cities in the world are not exact- French mega-supplier of water services, operates, pe- ly the best place to look for a ‘pure nature’ experien- ople are also demonstrating against privatisation. ce, the odour in Rabat is particularly pungent. In the The contracting parties agreed to the special sup- historic suburb of Salé, next to the bathing area, a hu- plement for Veolia in Rabat in 2002 »to finance urgent ge grey pipe discharges directly into the sea. »Ten years special investment in modernisation of the waste wa- ago,Veolia undertook, in a binding contract, not to dis- ter network«. Lhlou says this investment has not yet charge any more untreated waste water into the oce- been made, whereas the Veolia head office told zenith: an,« says Belfhil, »but nothing has changed.« The en- »We have invested, and will continue to invest, in the vironmental impact will be on a colossal scale, he waste water system in Rabat.« warns. In the 1980s, when Hassan II still ruled his king- Veolia is slow to take up new, environmentally dom with an iron hand, the municipal water supply friendly technologies, because it thinks they will thre- system was fully functional. To retain the feudal po- aten its traditional business,« says Nikolas Weth, a wa- wer of the royal family, based on control of agricul- ste water expert who says that Veolia has turned down ture, Hassan II commissioned the building of dams his environmentally friendly waste water proposals that eventually benefitted both small farmers and ci- several times. Weth and his engineering firm Drausy ty dwellers. To this day he is remembered as the »King supply a ‘green’ water purification method that is app- of Water«. >>

BusinessReport 4/2011 19 MONEY AND POWER p i c t u r e Young people in Rabat protest against the power : A C

M of the water behemoth. A lone ‘Veolia = Israel’ E

M joins the sea of ‘Veolia, piss off!’ placards. a r o c

Mehdi Lhlou pines for the past, at least in this respect. He remembers Rabat’s water works as being just as pro- fitable and productive »as the London water works«. In the mid-1990s, the city partially privatised its waste water treatment, but a Spanish-Portuguese con- sortium failed at the task. Then Veolia stepped in. »It was in a bad state when they took over, but they’ve ma- de it even worse,« complains Lhlou. Water became more expensive and now costs 200 per cent more than it did then, as Moroccan newspapers and magazines including Tel- Quel and l’Economiste have reported.Ve- olia is unpopular further afield, too. »The managers protect their core business with ruthless lobbying rat- her than with entrepreneurialism,« says Jean-Luc Tou- Selected data on water supply in Morocco ly, a former top manager with Veolia in Paris. Touly says he was fired in 2006 for criticising Veolia’s »cor- rupt practices« and »generally problematic business available fresh water in billions of cubic metres, per annum model for water«, while Veolia says he has a personal Morocco 29.0 vendetta against the company. Touly has since foun- comparison value: MENA region* 198.7 ded ACME, the »Association for a Worldwide Water consumption of available fresh water resources, as a percentage Contract«. Public-private partnerships (PPP) have become po- Morocco 43.4 MENA 116.7 pular with governments and private investors around the world as a way of providing a variety of public ser- consumption of fresh water by sector, as a percentage vices but Touly is adamant that »as far as water sup- agricultural use Morocco: 87.3 ply is concerned, this model leaves poor people without MENA: 88.1 access to clean drinking water«. household use Morocco: 9.8 In Rabat and beyond, opponents of privatisation of MENA: 8.2 waste water services appeal to the United Nations industrial use Marokko: 2.9 MENA: 3.7 Charter of Human Rights, which lists access to clean drinking water as a basic human right. At the vote in availability of drinking water for residents, as a percentage July 2010, France was among the countries that pres- urban Morocco: 99.0 sed for a more far-reaching text. President Sarkozy’s MENA: 96.0 business delegations usually include several Veolia re- rural Morocco: 56.0 presentatives and relations between the Group and MENA: 81.0 the government are excellent. With a turnover of EUR 35 billion, Veolia is at the pinnacle of the water sector source: FAO aquastat (2008) worldwide and can still see many more markets to *MENA region: Egypt, Algeria, Bahrain, Djibouti, Iraq, Iran, Yemen, Jordan, conquer. »Veolia is now looking at the Middle East, the Qatar, Kuwait, Lebanon, Libya, Morocco, Oman, Palestinian Territories, Sau- di Arabia, Syria, Tunisia, UAE Mediterranean and, most especially, Africa,« says To- ny Clarke from the Canadian think tank »Polaris In-

20 BusinessReport 4/2011 MONEY AND POWER

stitute«. Clarke speaks of Veolia’s ‘carefully-thought- jects in the region we work with reputable organisa- through approach’ to opening up new markets, which tions like the World Bank and the French develop- his institute has analysed in an unpublished study. ment aid agency Proparco,« it states. From Nairobi to New Orleans, Milan to Sydney, the- Human rights activist Belfhil is particularly disap- re are distinct similarities: secret contracts running pointed with the city council. »We’ve been on the for decades, complaints from local human rights streets for months calling for democracy and prote- groups about restricted supply of potable water and, sting against Veolia and ›politicians for rent‹, but the eventually, allegations of corruption. people who could do something about it are acting un- The partial privatisation of Berlin’s water services concerned, as if there weren’t any problems.« in 1999 is a particularly well-documented case. The then »grand coalition« (CDU and SPD) had, in effect, Veolia Environnement is number one in water created a legal basis for Veolia and contracts stayed con- management worldwide. Its predecessor was fidential until a referendum by the Berlin senate for- the ‘Compagnie Générale des Eaux’, founded in ced disclosure. Berlin and Veolia created a new form 1853 and later taken over by the Vivendi group. of publicly owned enterprise, in which the city took In 2000, the water services segment was split all the risks. off under the brand Veolia Environnement and In Rabat, too, demonstrators are protesting the lack listed on the New York stock exchange, among of distance between Veolia and the city’s administra- others. Ten years later it had an annual turno- tion. »All of a sudden anyone who was pulling strings ver of EUR 35 billion and a net profit of EUR 580 million. The latest dividend was EUR 1.21 in the deal with Veolia was living in an eye-catching per share. Veolia is the fifteenth-largest villa,« claims Lhlou. Veolia will not tolerate such ac- company in France. cusations. »We work according to a strict code of ethics that does not allow corruption. To finance our pro-

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OPINION The cycle of cynicism The sanctions against Iran are stupid and counterproductive – we are strangling the very people we should be supporting. Respectable business people and young, pro-Western Iranians are the ones who suffer. Is it all about not losing face?

by Mathias Brüggmann p

i rom well-known German coffee ding and, more specifically, the de facto c t u r e brands to JVC camcorders, Osram ban on all legal transactions, have forced

: Mathias Brüggmann H a bulbs and Hewlett Packard toner commerce underground. Investigators ha- n is an editor at d

e F l

s cartridges, if it can be bought for cash, ve their work cut out for them with smug-

b Handelsblatt, a l a t t German daily you’ll find it in one of Teheran’s bazaars. gling and »cash-in-the-suitcase« transac- business newspaper. There are goods from Europe, Japan and tions on the rise. Formerly the paper’s the USA, despite the ever-tougher sanc- The cost of imported goods is rising as Moscow correspondent, he now covers tions that the UN, EU and USA have im- evasive transactions and the use of cash the Middle East and the Persian and posed on the regime of the mullahs. If se- payments instead of bank transfers push Arabian Gulf region. cret service reports from Western coun- costs higher and higher. Ordinary people, tries about Iranian nuclear scientists the ones who should not be affected, are coming closer to creating an atomic bomb suffering. Barely any Iranians can afford and announcements by Iranian agencies to study abroad any longer, because they regarding progress on uranium enrich- cannot transfer the fee. By refusing to ad- ment are to be believed, the sanctions ha- mit Iranian high school graduates to uni- ve been ineffective, and as far as basic con- versity courses in the natural sciences, ma- sumer goods are concerned, all they have ny countries are hurting both themselves done is push prices up. and the Iranian opposition. We, the West, This shows that sanctions against Iran are making it more difficult for many simply don’t make sense. Coercive mea- young Iranians to learn about and appre- sures of this sort can even be totally coun- ciate life away from the strict religious terproductive: restrictions on legal tra- control in their home country.

22 BusinessReport 4/2011 MONEY AND POWER p i c t u r e : I r a n N e w s N o w . c o

President Ahmadinejad tells his people Why should a decent German business- m that the disastrous economic, social and man have to say goodbye to business part- fiscal results of current Iranian policies ners in Iran with whom he has been trans- are the results of Western sanctions, so acting fully legal import and export deals the sanctions have also backfired in the for decades? What is left of the tradition sense that they allow the Teheran regime of the German economy as a reliable bu- to divert attention from its own failures. siness partner? How are the sanctions da- Gradually we are pulling the rug from maging the image and standing of our under the feet of Iran’s medium-sized firms in the wider region? And why are the companies. Already hard-pressed by the Chinese and Russians, and in some cases vast and steadily increasing economic ex- also the Swedes and Americans, supplying pansion of firms within the orbit of the things that our politicians do not allow Revolutionary Guard, these companies are German companies to supply? finding the doors to external trade clo- The office of the German Chancellor sing in their faces. Without access to re- has stipulated a »strategy of discourage- placement parts from abroad, you can’t ment«. Officials at the Federal Office of continue to manufacture your product. Economics and Export Control have been The problem is now affecting even indu- instructed to put Germans off doing bu- stries that could hardly be more removed siness with Iran by deliberately delaying from Iran’s controversial nuclear pro- export licence applications. This – com- gramme, including the production of de- bined with pressure from the United Sta- Consumer goods from JVC camcorders tergent. tes – has led to Daimler ending its coo- to HP toner cartridges are available in peration with Teheran vehicle manufac- Tehran’s bazaars. Though prices have turer Iran Khodro Diesel and stopping risen, the goods are still available. But Why are Russians, assembly of the E-Class in Iran. Meanw- who really benefits from the sanctions? Chinese, Swedes and hile, over at Peugeot and Renault – in the adjacent building in the same factory – Americans supplying new models roll off the production line re- what Germans are gularly. The German government is har- ming the German economy and nobody for as long as the Iranians remain isolated, not allowed to? is saying anything. they can do nothing more than dream of All the while, Russia is loading the di- exporting gas and participating in the Na- The Iranian sanctions are wrong. There ce. Officially, Moscow is involved in the bucco pipeline to Europe. The Kremlin- is plenty of proof, including a study by UN sanctions, yet it was the Russian sta- owned Gazprom still has a monopoly on US economist Amanda Licht, who disco- te-owned company Atomstroyexport that supplies from Central Asia for the Euro- vered that heads of state of countries af- built a nuclear power station in Bushehr, pean energy market. fected by sanctions or an embargo actu- in southern Iran, and supplied the fuel It all goes to show how absurd the sanc- ally retain power for longer. Still there is rods. On the one hand, the Kremlin re- tions are. As Roland Popp, a Zurich rese- one big question that almost nobody peatedly poses as an advocate for Teheran archer into the Middle East, puts it: »Ma- seems to be able to answer: how do we and puts off new rounds of sanctions. On ny Western governments see sanctions as find a way out of the ruinous cycle of ever- the other, Moscow is busy making the a good compromise between doing no- tougher sanctions without losing face? most of the situation for its own benefit, thing and all-out war.«

BusinessReport 4/2011 23 MONEY AND POWER

OPINION

Since March 2011, Ministers at national Who’s afraid of Algiers? and federal state level have withheld sup- Algeria, the biggest country in Africa, wants port from German businesses, while lea- ders of other states have been coming and German technology. But Berlin is deaf to signals going in a steady stream and flying back from the Maghreb – and to calls from the home feeling very satisfied. Former French commercial sector for political support. Prime Minister and now Special Envoy Je- an-Pierre Raffarin, whose role includes Has the Arab Spring rattled the German government supporting French businesses in North to such an extent that it’s afraid to make a move? Africa, even managed to override an un- fortunate 2009 piece of legislation accor- by Christoph Partsch ding to which foreign investors may own only 49 per cent of a company. Because negotiations had begun before the law took he principle of ‘low-hanging fru- Libya in terms of oil and gas reserves, it effect, the French interested party was al- its’ comes up as early as Economics is only an hour’s flight away from Italy lowed to own the company outright. T 101: first take care of the big cu- or Spain, so that it would be possible to Clearly, it is possible to find solutions stomers whose needs are easily serviced and lay electricity cables connecting it to both in Algeria. But Germany hangs back, over- who will provide extensive orders in the fu- those countries to supply Europe with so- ly cautious. Is it because Algeria has not ture. But Germany’s foreign policy seems to lar energy. Europe may very soon need experienced an ‘Arab Spring’? Germany operate on the opposite principle: this ye- Algeria as a supplier, just as Algeria relies doesn’t seem reluctant to sell Leopard ar, Chancellor Angela Merkel visited Ke- on supplies from Europe. tanks to Saudi Arabia, also yet to expe- nya, an economically irrelevant country mi- Furthermore, Algeria has a very positive rience the Spring. Yet it hesitates to lend red in corruption, while Foreign Minister opinion of Germany, having received sym- its support to solar energy plants in Al- Guido Westerwelle, who wants to streng- pathetic/favourable support from Bonn, and geria and help a struggling industry. Ber- then civil society in Africa, is sensibly – then Berlin, since its independence in 1962. lin is considering sponsoring delegations though unsuccessfully – seeking contacts German products and workmanship are of business people to Denmark to study on the continent. At least we have him to well regarded. In March 2011, the Algeri- its public procurement system but there thank for the boycott that freed Benghazi! an government announced a renewable are no equivalent delegations focussing energy programme involving investment on water treatment in Algeria. Could the- of USD 130 billion in order to provide 40 re possibly be change on the horizon? The Spain and France per cent of the national energy require- Ministry of Economic Affairs is planning dispatch top ment from renewables by 2030. Unlike the a joint economic commission for March German government’s energy plan, this is 2012. This would be an opportunity to politicians to support a realistic one: two photovoltaic plants make up for lost time, build bridges and their countries’ worth EUR 300 million each have already finally demonstrate the support from the been commissioned. That the Algerians German economy that Algeria has been businesspeople hold Germany in extremely high regard asking for. in such matters is evidenced by the fact

Any atlas shows that, after the division of that they even published an official bro- p i c t Sudan, Algeria has the largest surface area chure on renewable energies and energy ef- u r e : of any country in Africa. Unlike every ot- ficiency in the German language. p r

Dr Christoph Partsch, i v a t her African country, however, it does not However, the first contract was awar- the managing director e suffer from rampant government debt but ded to Spain. The Spanish Prime Minister, of the German-Algerian is sitting pretty on massive gold reserves Jose Luis Rodriguez Zapatero, personally Chamber of Commerce, totalling around USD 150 billion and supervised the tender. German company is a lawyer specialising in company law foreign exchange reserves of around USD Centrotherm AG won the second contract and corporate criminal law. 170 billion. Not only is it second only to – entirely unaided.

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SPECIAL GUEST Our deep belief in helping Twenty years after his home country’s independence, Yerik Utembayev, Kazakhstan’s ambassador to the EU and Nato, sums up what he considers a remarkable success story, and explains Astana’s commitment to its regional responsibilities

azakhstan is the ninth largest partners. In 2010, the bilateral goods tur- The exports level of Kazakh hydrocarbons country in the world, it occupies nover had increased by 30 per cent, in 2010 to European countries reached K a key geopolitical and geo-strate- amounting around USD 28 billion. Ac- USD 10 billion. Out of a total 71 million gic position in the Central Asia region. cordingly in the first half of 2011, the vo- tons shipped out 80 per cent goes their Having celebrated the twentieth anniver- lume of bilateral trade has already rea- way. We are the third largest supplier, be- sary of the independence in 2011 we re- ched more than USD 25 billion – USD 7 hind Russia and Norway, of energy carriers call various challenges related to the for- billion more compared to last year’s indi- to the EU among non-OPEC countries. mation of our statehood, national econo- cator. Since 1993 up to 2010, the total in- Last year we produced more than 2 mil- my, and civil society: our country managed flow of direct investments from Europe lion tons of petroleum gas – a 123 per to generate a firm ground for development to the Kazakh economy amounted to mo- cent increase from 2009. Out of this, ab- and turned out to be an active participant re than USD 50 billion, including more out 1,6 million tons have been exported of international relations. In 1994, gross than USD 10 billion in 2010. In its turn, to European countries. domestic product per capita in Kazakh- Kazakhstan is the EU’s premier trading Also in 2010 Kazakhstan, together with stan hardly amounted to more than USD and investment partner in Central Asia. In Russia and Belarus, established a customs 700 – in the beginning of 2011 GDP has 2010, Kazakhstan ranked 30th on the ge- union for the common market of their grown more than twelve times and now ex- neral list of EU trade partners and 20th in »Eurasian Economic Community«. Cu- ceeds US 9,000. Kazakh total GDP in 2010 terms of goods supplied to the European mulative GDP of three countries amounts amounted to about USD 146 billion, its market. to more than USD 3 trillion, industrial annual growth having reached 7 per cent. In investments, Kazakhstan actively potential is estimated to be USD 600 bil- In the country’s development these cooperates with the European Investment lion, the agricultural output amounts to achievements were also backed by a deci- Bank (EIB). At present, the EIB has allo- around USD 112 billion and the scope of sion by decree of President Nursultan Na- cated a framework loan in amount of EUR the consumer market comprises more zarbayev to close the Semipalatinsk nu- 300 million for the Central Asian country. than 165 million people. clear test site and the renouncement of It has also received a mandate to invest In January 2012, we will launch the the fourth largest nuclear arsenal in the EUR 1.5 billion in Kazakhstan. Still, espe- »Common Economic Space« (CES) which world as the legacy of the Soviet Union. cially in terms of interaction in the ener- can become a reliable partner for the EU The European Union is one of Ka- gy sector, Kazakhs are interested in further as well as a bridge between Europe and zakhstan’s leading trade and investment deepening of the cooperation. the dynamically developing countries of

26 BusinessReport 4/2011 MONEY AND POWER

the Asia-Pacific region. CES will provide goods turnover amounted to USD 14.1 ly 2011, Kabul submitted an application to easy access to production facilities of goods billion, which for January to August 2011 to grant it observer status with the SCO. and services, based on general rules and has already reached USD 12.2 billion. We Meanwhile, Kazakhstan has introduced norms, also access to natural resources, continue direct interaction with China wit- into the OIC’s »Astana Declaration« long- their transportation, and commodity mar- hin the framework of multilateral structu- term commitments of OIC members to kets, as well as to new technologies. In res, particularly within the »Shanghai Coo- the establishment of peace, stability and terms of economic integration, Kazakh- peration Organization« (SCO). social and economic restoration of the Is- stan supports the idea of establishing an Since June 2011 Kazakhstan chairs the lamic Republic of Afghanistan (IRA). For Eurasian union. Simultaneously, it dee- Organization of Islamic Cooperation. As its part, the Kazakh government provides pens and enhances cooperation in the Cen- such it intends to promote rapprochement humanitarian aid to Afghanistan on a re- tral Asia region in bilateral formats. between the West and the Muslim world. gular basis. We have, for example, alloca- In Uzbekistan, Kazakhs investmented In the light of recent events in those ted USD 2.3 million for the construction into around 200 operational production countries of North Africa and the Middle of schools, hospitals, and roads in the IRA. facilities, engaged in the processing of agri- East, the so-called »Arab spring«, who are Upon President Nazarbeyev’s initiative, cultural products, trade, food, machine- also members of the OIC, Kazakhstan in- we continue to implement an educational building, light industry, metal works. The tends to take part in the stabilization pro- programme for the Afghan youth, which cesses in the region and supports the coun- envisages the provision of training in Ka- tries in their transition periods – with the zakhstan for 1,000 Afghan students, who To promote help of OIC mechanisms and institutes. will receive civil specialties. The first group rapprochement Especially against the background of of Afghan students, 153 persons, already the last events having occurred in Libya, has arrived in September 2010. In 2011, we between the West and Kazakhstan considers it important to have welcomed another group of 179 stu- the Muslim world maintain security for civilians and for the dents. The Kazakh government has allo- restoration of stability. Kazakhstan sup- cated USD 50 million out of the national ports the preservation of the sovereignty budget for these purposes. bilateral goods turnover for 2010 amoun- and the territorial integrity of Libya, the In our deep belief, such socially focu- ted to USD 1.6 billion and increased by strict observance of national and inter- sed and non-military projects will help 31,6 per cent compared to last year. national law norms and in so doing re- Afghanistan and its young generation to All the while, Kazakhstan assists Kyr- spects the choice and political will of the adapt to the realities of the present-day gyzstan in stabilizing its internal situation Libyan people. Kazakhstan is ready to pro- world and will create a stimulus for the de- and is one of its leading foreign trade part- mote the mobilization of all OIC resour- velopment of a civilized state and the in- ners. In 2010, the volume of bilateral goods ces to render assistance in the settling of stitutes of civil society as a whole. turnover was USD 590 million. In this the situation and in overcoming the hu- neighbouring country we have over 400 manitarian crisis in Libya. joint ventures with the participation of As well, Kazakhstan as OIC chair In the p

Kazakh capital in the energy, transporta- context of developing of regional coope- i Yerik Utembayev is the c t u r tion, building materials, and banking sec- ration, it is necessary to note the problem e

Republic of Kazakhstan’s : k a tors. Also, Kazakhstan provided humani- of Afghanistan. Within the SCO frame- z

ambassador to Belgium a k h tarian aid to Kyrgyzstan of more than USD work, the member states make efforts to s and Luxemburg, as well t a n

20 million in total. establish »anti-terrorist, anti-drug and fi- e as chèf de mission at m b a

At the same time, Astana maintains good nancial belts« round Afghanistan. The s

the European Union’s institutions and s y . neighborhood relations with Beijing, too. »SCO-Afghanistan« Contact Group has b Nato’s headquarters in Brussels. e In terms of economic cooperation in 2010, been established; consultations on Afghan we witnessed a stable growth: bilateral problems are held on a regular basis. In Ju-

BusinessReport 4/2011 27 COMMODITIES d e t r o p The woeful lack of n U

0 infrastructure in Luanda . 3 e k

i is hampering major l A e r construction projects, a h S but the government is n o i t u sticking firmly to its plan. b i r t t A s n o m m o C e v i t a e r C y b d e asa dos Frescos, a supermarket in s n e c i Luanda, went too far in January l / s 2011 when it charged USD105 for n o C m a ‘golden melon’. Imported from Portu- m o c

u gal, the fruit was no doubt delicious, but - n a that was not the point. The melon shot to M : e r fame as a symbol of luxury and the ex- u t c i p ploding prices of imported goods in a country known until a few years ago on-

INVESTMENTS ly for its gruesome, decades-long civil war, where most people still live in poverty. Yet newspaper headlines along the lines of ‘More and more people dream of Ango- lan citizenship’, as seen recently in O Pa- »We want people ís, are not uncommon. Now, while Europeans mired in the eu- ro crisis may dream of many things, an to see us as Angolan passport has probably never been on their »wish list« – until recently, that is. Official statistics show that, since the war ended in 2002, several hundred thousand a second Dubai« Portuguese have applied for Angolan citi- zenship. The former Overseas Province of Luanda, the capital of Angola, is one of the Angola, which gained independence in most expensive cities in the world. 1975 after a bloody colonial war, accords its citizens economic privileges that are As part of the recovery after decades of civil not available to foreigners. war, the construction industry and the consumer Rui Santos, a Portuguese with an An- golan passport who opened a ladies clo- goods and financial sectors are attracting thing boutique in Luanda a few months companies from Asia, Europe and South America. ago, proudly shows us his latest offering The margins are as thrilling as the – a wedding dress made mainly of polye- ster. »I can buy this dress in Europe for circumstances with which the businesses have around USD 200 and sell it here for to do battle daily 3,000,« says Santos. With margins like that, business is going very well, though most of his income comes from proper- by Romy Rösner ty, as rents in Luanda are rising steadily. Santos also works as an agent for repre-

28 BusinessReport 4/2011 COMMODITIES n o i t a c i d e D n i a m o D c i l b u P l a s r e v i n U 0 . 1 O C C s n o m m o C e v i t a

sentatives for foreign companies, taking a e r C percentage of their profits. y b d e

Angola has oil and produces nearly two s n e c i million barrels a day. It does not produce l / s

any consumer goods or capital goods. De- o t n a mand for imported goods is high and ma- S r a s ny foreign companies have picked up on é C o the whiff of success in the air. Airline boo- l u a P kings are a reliable indicator – business Street signs are virtually non-existent, even in the centre of Luanda. Foreigners ma- : e r u t class seats to Luanda are usually booked king false turns become the target of police officers raking in »warning fees«. c i out. The national airline, SonAir, now of- p fers direct flights to Houston, Texas for the employees of American oil companies. ce of the Angolan oil company Sonangol. Luanda feels frenzied and dynamic. Tall There are about 300,000 Portuguese in The apartment is on the 10th floor of an office buildings and luxury hotels are Angola, and even more Chinese. The city’s unappealing building whose lift has not springing up everywhere you look in the bars are a meeting place for Brazilians, functioned for many years. Water is deli- centre of town. But the standard of living South Africans, Americans, French, Spa- vered by tanker. Things are no better in is not great and there is no cultural life to nish and a few Germans. Most are male. his office, only 300 metres away. When speak of. Still, there is a cinema, housed in »For families, life is better in Portugal. It’s Chinese labourers were working on the the »Belas Shopping« centre. And the go- not so dirty there and the infrastructure building next door, they cut the wrong wi- vernment is very proud of the way things and schools are better,« says Eliseu Gaspar, re and there was no electricity for two are developing. It launched a plan for himself an Angolan and the vice-president weeks. When he’s not walking to visit a transforming the capital in 2008. André of the Angolan Industrial Association business contact, Severino likes to drive Mingas, the presidential adviser for town (AIA). His wife and children live in Lisbon. planning, unveiled the model for the vision Anyone who intends to stay in Luanda »We’re sorry, but in a television interview, saying: »We want more than briefly, and has the means, finds people to think of us the way they think a home in Luanda Sul. The only downsi- the consulate of Dubai – with amazement and curiosi- de to living in this elegant suburb is that does not have internet ty.« Upgrading »Marginal«, the waterfront if you work in the CBD, you have to leave promenade, will be the cornerstone of the home at dawn to beat the traffic. Luanda access today« redevelopment. labours under the weight of impossible Angola’s reconstruction is being financed numbers of vehicles and a serious lack of the dark blue Audi the president gave him. by China, which has provided more than infrastructure. Presidential adviser José Se- Traffic lights and street signs are a new ad- USD 10 million in loans over the last 10 verino, who owns a timber factory and se- dition to the Luanda cityscape. Severino is years. In exchange, contracts are awarded to veral companies that manufacture super- lucky: he is well known and no corrupt Chinese companies, which keep costs down ior furniture, came up with a way of avo- police officer would dare sting him with a by housing their Chinese employees at the iding the stressful commute: he and his »warning fee« for turning when he wasn’t construction site rather than providing ex- wife moved into an apartment in the cen- supposed to, something that foreign ma- pensive accommodation elsewhere. Ango- tre of the city, right next to the head offi- nagers have to put up with all the time. lan workers don’t even get a look-in. >>

BusinessReport 4/2011 29 COMMODITIES n o i t a c i d e D n i a m o D c i l b u P l a s r e v i n U 0 . 1 O

Brazilian construction group Odebrecht is C C s one of the largest construction companies n o m

in Angola, and another Brazilian compa- m o C

ny operates a sugar cane plantation for e v i t a biofuel production. The locals are fonder e r C y

of the Brazilians than they are of the Chi- b d e nese, not least because they employ An- s n e c i golan workers and train their employees. l / s

Third in the popularity stakes is South o t n a

Africa, the former enemy. South African S r a s

President Jacob Zuma visited Angola in é C o l

2009 accompanied by more than ten of u

An offshore drilling platform off the coast of Angola. The oil company brings its em- a P his ministers. The French president came : e

ployees from Houston, Texas, into Luanda on charter flights. r u t c

too, in 2008. After the »Angolagate« con- i troversy over French weapons deliveries p during the civil war, the relationship bet- ween France and Angola had been strained, but Luanda acknowledged the visit from The signals are perfectly clear: Luanda Whoever brings the Paris by showing greater appreciation of expects Berlin to show more goodwill, French companies. and much, if not all, depends on deci- most ministers is the German authorities are well aware that sions made by the government. Ultima- winner political gestures are the key to winning cu- tely, the offices of the Delegation of Ger- stomers. Trade between Angola and Ger- man Industry and Commerce were ope- The lack of political support is not the many quadrupled between 2005 and 2008. ned only because President dos Santos only problem for companies wanting to When President José Eduardo dos Santos approved the project personally during do business in Angola. Getting a basic visited Germany in February 2009, the Mi- his official visit to Germany. There are 30-day visa can take weeks. The process nisters of Economic Affairs of both coun- not enough funds and staff available to is complicated and has become even trik- tries signed a joint declaration on closer establish German institutions and initi- kier in recent years. Not infrequently, trade relations. According to local civil ser- atives over the long term, it is claimed. At consulate staff blame the intermittent vants, Angola’s minister, Manuel Nunes the annual »German-Angolan Economic Internet connection with Luanda. Ango- Júnior, was pretty grumpy about it. Nego- Forum«, held since 2008, »it’s usually the la does not issue multiple-entry visas, so tiations on the wording of the agreement case that while several Angolan ministers applications for the second and third vi- continued right up until the night before travel to the event, you will hunt in vain sa are lodged with the consulate even be- it was signed, and the whole thing nearly even for one German minister,« com- fore the first trip. Of course, a work visa collapsed at the last minute. plains one Luanda business representati- is required if you want to do business. A second agreement was to have been ve. There may be a state secretary, at the By the time the visa is finally approved, signed during Angela Merkel’s visit in Ju- very most. At this year’s forum in Mu- up to two years after the first application, ly 2011, but this time it was Luanda that nich, some participants were outraged the EUR 1,000 fee is considered forgot- determined the pace of the summit. The when the state of Bavaria sent only the ten, but only for employees of Angolan chancellor’s delegation left without having head of a section within its Ministry of companies or those who operate their accomplished its mission, leaving the am- Economic Affairs. The significance of her own branch in Angola. bassador to finish the job, those in the relatively lowly status was not lost on the C. Woermann has been involved in An- know revealed later. Angolan guests. gola since 2005 selling construction equip-

30 BusinessReport 4/2011 COMMODITIES

Selected economic data for Angola

gross domestic product activity and forecasts in billion US dollars

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 population (in millions) 18.0 18.5 19.0 19.6 20.2 current account balance (in USD billions) 7.2 -7.6 7.3 11.9 7.9 investment rate (as a percentage of GDP) 16.2 15.2 11.6 12.7 12.8 change from previous year, as a percentage: current account balance 8.5 -10.0 8.9 12.0 7.3 inflation rate 12.5 13.7 14.5 15.0 13.9 84.2 75.5 82.5 99.3 109.0 imported goods and services 45.6 7.4 -20.6 13.6 20.3 exported goods and services 27.3 22.4 -35.0 24.0 45.7 change from previous year, as a percentage 13.8 2.4 3.4 3.7 10.8

source: IWF (World Economic Outlook September 2011) source: IWF (World Economic Outlook September 2011)

ment, generators and the like. Business was suspected, in 2010, of having bribed authors did not provide any evidence for went well – until the 2009 financial crisis. several Angolan civil servants. A former the accusations, and former Bundesbank Angola suffered from the fall in the price Angolan general, Manuel Hélder Vieira, president Ernst Welteke, now consulting of oil to a much greater extent than any ot- nicknamed ‘Kopelipa’ is alleged to have to an Angolan bank, turned to the legal her southern African country. The go- obtained ‘priority commercial property for system to prevent the report being pu- vernment fell behind in repayments to the the company. ‘Kopelipa’ is the main sha- blished. tune of billions of dollars. Major projects reholder of the Angolan subsidiary of Mer- Chancellor Merkel’s visit to Luanda was were put on ice. C.Woermann, which now cedes. In 2005, Volkswagen AG put its plans an opportunity for Welteke to get together employs 100 Angolans, is still waiting for for an assembly plant in Angola on ice with old acquaintances, but the delegation overdue accounts to be paid. »Construc- when the former chief of VW subsidiary did not even stay a full 24 hours. Ricardo tion projects are taking a long time to get Skoda, Helmut Schuster, was caught trying Gerigk, Head of the Delegation of German going again, and you couldn’t say that the- to line his own pockets by means of que- Industry and Commerce in Luanda, would re is a new boom,« says Detlev Woermann, stionably structured companies. have liked to combine the visit with an eco- the managing partner of the Hamburg pa- nomic forum. »What the Angolans really rent company. Corruption suspected want is great spectacles. A German chan- Meanwhile, members of the elite group cellor and 100 German companies in An- around President Santos, which controls everywhere gola would have been a great spectacle pic- most of the private sector, are doing fine. ture,« says a disappointed-looking Gerigk. The big players, including numerous for- Such incidents are not the only reason why At least Merkel managed to fit in a bu- mer generals, have billions in the bank. nearly all expat companies are regarded siness breakfast and a meeting with Presi- The middle and lower classes have a secu- with suspicion. This year, a document pu- dent Santos before laying the foundation re income in the form of ‘gazoza’ – the blished by the »Informationsstelle Südli- stone of a building for airline caterer LSG small bribes that are par for the course in ches Afrika« (Southern African Informa- Sky Chefs. The German government had Angola but more likely to make life a mi- tion Centre) suggested that almost all the been searching for a »visible investment« for sery for businesses than to help them get German companies with a presence in An- a while and the new building, right next to around the bureaucracy. Even Daimler AG gola were involved in »dirty deals«. The the international airport, fitted the bill.

BusinessReport 4/2011 31 COMMODITES p i c t u r e : p r i v a t PETROLEUM e

»It would be very difficult for Russians and Chinese«

Abdeljalil Mohamed Mayuf, information director of Libya’s Arab Gulf Oil Company, about old deals, new partners, and the demise of the National Oil Company

interview: Alexander von Hahn

zenith: Dr Mayuf, you have ten returning from his trips to Europe, spent more than two decades working Americas, Asia with contracts concluded in the Libyan oil industry. on terms only known to him and a few ot- Abdeljalil Mohamed Mayuf: I started wor- her officials from the government. You see, king for AGOCO in the early nineties. In no transparency, no clarity. All we had to »We need to Qaddafi’s Libya the oil sector was under do was to deliver – not discuss or even un- very strict control of the state. The Natio- derstand, what government policy in the see benefits nal Oil Company, NOC, established in the oil and gas sector was. seventies, has dominated the industry even for the Libyan before the Ministry of Energy was abolis- Yet the years leading up to the revolution hed in 2000. The NOC was in charge of all were particularly good for the Libyan sales of Libyan energy resources, as well as energy sector – new contracts, licenses, people« regulating the legal and operational fra- projects ... mework for those foreign companies which Yes, but please don’t forget that we were worked in Libya. After the end of sanc- subjected to international sanctions for al- tions access to oil and gas resources often most thirty years! While other oil-produ- became the question of loyalty or toleran- cing countries were building their econo- ce towards the Qaddafi regime. Shukri mies we spent our money on Soviet-ma- Ghanem, then president of NOC, was of- de weapons and armaments. Much of our

32 BusinessReport 4/2011 COMMODOTIES

»All we had to do was to deliver – not discuss or even understand,

Dr Abdeljalil Mohamed Mayuf is spokesman for the Arab what govern- Gulf Oil Company (AGOCO), founded in 1979 as a subsidiary of Libya’s National Oil Company. Its oil fields are in the east of the country, its head office in Benghazi. ment policy was« Before the uprising, the company was producing 40 per cent of Libya’s oil. In March 2011 it broke away from Gaddafi.

production assets need total replacement ted the revolution from the start by pro- trol over Brega and Ras Lanuf refineries. or modernization, we need new technolo- viding moral and financial help to the re- That was the task for our new army and gical solutions, new infrastructure, we need bels. We gave them food, transportation, our field commanders. to step up the exploration. Only thirty per shelter. From the start we were the revo- cent of Libya has been explored so far. lution’s driving force. Did it take long to find buyers? Not really. People were willing to help us. Which means you need to get as much The »AGOCO revolution«? From all over the world – traders from Ame- foreign investment as possible. You may say that. We have made every- rica, Switzerland, other countries. We still This seems to be problematic taking thing possible for the revolution to suc- work with them today because now we are into consideration the current state of ceed, including most of the financial assi- importing oil products to the country, not affairs in the country, devastated stance needed. We were selling oil already only selling oil. We are a big trading com- by the civil war. in March, even earlier, from February 21, pany, providing new Libya with all it needs. I don’t think you have to ask me why we from the very beginning. Under Qaddafi had to do it, why we had to get rid of we were not allowed to trade and we had An »oil trader from Switzerland« – Qaddafi and his people. Yes,from the eco- no experience in it. But where was no ti- do you mean Glencore? nomic point of view war is not the best me to waist, and we built a team of traders Yes, Glencore, and Dutch company Vitol. remedy. We have lost almost half of oil who – often by telephone book and inter- production and now have to spend mil- net – were able to find buyers for our pro- Moving on to the future Libya: what role, lions to catch up. But AGOCO suppor- ducts. And it was vital for us to keep con- do you think, will the NOC play in the

BusinessReport 4/2011 33 COMMODITES p i c t u r e : p r i v a t e

national oil sector? gotiations, but I am sure it would be very de oil. This is fine, though before the re- Actually, I don’t see the NOC playing any difficult for the Russians and the Chinese volution they were pumping out twice as role at all. In fact just two months ago we- to have new agreements or concessions much. ’ve petitioned the Transitional Council to work in Libya after supporting Qaddafi till abolish the NOC and, instead, create a Mi- the end. The oil produced has to be delivered to nistry of Oil and Gas. international market. Is it sold by you? Wouldn’t it better to let the past Yes,because so far no one else is exporting So you started to think about the future be the past? Libyan oil. Only through the AGOCO ter- long before the end of the revolution? Another problem are the Libyan assets in minal in Tobruq. We – and by that I mean not only AGO- Russia and China. We have practically no CO, but also other companies and unions information about them. Others provided And how do you distribute the profit? that signed that petition – asked Ali Tar- us with quite an accurate account, but we We remain the only importer of gasoline, houni and Mustafa Abdul Jalil to consider have practically no information from the- diesel and naphta to Libya – it costs a lot replacing the NOC with an government se two countries. This may prove to be an- to supply the whole country. Then AGO- institution responsible for the overall ad- other miscalculation on their behalf. CO also has to pay back something like ministration of the industry: legal, techni- two billion dollars of credit which was gi- cal and safety regulations, environmental But you welcome Western oil companies ven to us to import oil products during control, issuing licenses for the explora- and are willing to open up the country the revolution. The rest goes to the provi- tion of new fields, development of infra- for Western capital? sional government and, indeed, to our ac- structure. At the same time every compa- Of course. We need investment, we need count to pay salaries and other related ex- ny will be responsible for production and expertise and know-how. Currently, we ha- penses. At the moment we produce almost will be accessing the markets directly, rat- ve seven national oil companies and an- 250,000 barrels per day. Before the revo- her than through an intermediary. other thirty service companies. It is not a lution that used to be 425,000. The who- problem to have another few enterprises le of Libya currently produces only 540,000 Might it as well be that the »cancellation« developing oil and gas fields – Libya has a barrels per day. During the war many oil of the NOC will bring about the revision lot of potential and everyone is welcome. wells were closed and the process of re- of existing business arrangements – no The only criteria are the benefit of the Li- opening may take time – two or three NOC, no contracts? byan people and our long-term economic months. Currently, AGOCO opens ten to I don’t think it’s possible. Of cause, in so- development. Only two weeks ago I visi- twenty wells per week and we expect to me cases, the revision might be necessary. ted the German company Wintershall, their reach the 400,000 barrels per day level by Like the contracts signed between the NOC concession in the Libyan desert. They’ve al- February. So, our financial situation will and the Russian company Gazprom.I ready resumed production and now are improve dramatically. can’t comment on the current state of ne- pumping out 60,000 barrels a day of cru- Will a new Libyan government, as soon as it is formed, continue signing produc- tion sharing agreements, or will it be ta- king the path chosen by the new Iraqi go- »Actually, I don’t see vernment, which, instead of PSAs, awards service agreements? the National Oil Company This remains to be seen. At the moment there’s not much thinking about the way the Libyan economy will be run. We’ve just playing any role at all« managed to succeed with our revolution – people haven’t yet started to think about the future economic policy. Politics – yes.

34 BusinessReport 4/2011 COMMODOTIES

»A democratic Libya

can afford many political Don’t you think the break-up of the NOC will lead to the break-up parties and oil companies« of Libya into independent or semi-independent regions with their own oil based economies, their Economy – perhaps a little later. Regarding What about a privatization own tribal and social life? the form of our future cooperation with of AGOCO? I don’t think so. After all, this is the first ti- the oil majors: during the last five years we An IPO in London, perhaps? me we’re able to build a democratic Libya, used to sign exploration and production We don’t discuss it now, but it is an inter- which can afford many political parties sharing agreements with many Western esting topic. All depends on the policy of and oil companies, a diversified industry companies. Perhaps we will do the same in the government which is to be formed. base. You know, energy is not the only way future. But what’s important is the way the- And not only a government – we have to out of poverty. We have great potential for se contracts will be concluded and execu- elect a parliament and to create, not re- tourism, agricultural development, infra- ted. We need transparency, we need to see form, a new political system. The role of structure. And we have many partners benefits for the Libyan people, not for one the energy sector is important, but it has around the world willing to support and family or the group of people. to serve the interests of the nation. work with us.

The Global Charter Broker Your wish is our passion “Anything at all, we provide it.”

www.lhcharter.com COMMODITIES

TEXTILE INDUSTRY Challenge the Indus One year after the great flood, Pakistan’s cotton exporters have recovered astonishingly fast and well. But there is sure to be another flood soon – and Pakistan is not prepared for it by Christoph Sydow p i

housands died, tens of thousands run textiles factories profitably. The un- c t u r were left homeless, and an area stable security situation makes foreign in- e : D u

twice the size of Germany disap- vestors wary of becoming involved in the r z a

T n peared under water when a devastating Indus region. C i r a flood struck much of Pakistan just over a Textiles are critical to Pakistan’s econo- n o /

year ago. Hundreds of thousands of hec- mic development. The textiles sector ge- l i c e n

tares of cotton fields, representing almost nerates more than half of the country’s ex- s e d

30 per cent of last year’s harvest, were de- port earnings but Islamabad essentially ig- b y C r stroyed. As a result, the steadily increasing nores it. The government has not yet taken e a t i v price of the most sought-after textile in the any measures to prevent a repeat of the e C o world rose even faster, quadrupling within catastrophic floods. Dykes are still not high m m two years. In March, the price of cotton on The next rise in the price of cotton is enough and are in need of repair, and the- o n s A

the world market reached a record USD just around the corner. re are still no flood-plain areas that could t t r i b

212 per bale. It has now stabilised at a re- relieve other areas in the event of an emer- u t i o latively high level, settling at just over USD gency. The government has either not clai- n S h a

100 per bale. from artificial fibres, whose profile is gro- med donations promised by other coun- r e A l i

After last year’s patchy performance, the wing in the textiles sector, this would me- tries for flood protection or has not app- k e 3 . textiles sector worldwide is expecting the an a 1.5 per cent increase on the previous lied the money for that purpose. In a 0 U n

2011/12 harvest to be the biggest in years. season. However, the ICAC estimates ha- situation where global warming means p o r t According to estimates by the Internatio- ve not factored in the possibility of the that extreme weather events like those of e d nal Cotton Advisory Committee (ICAC), world economy slowing down, which 2010 will become more frequent, it is on- which represents 42 cotton-producing could depress demand. ly a matter of time before the next dis- countries, Pakistan is expected to produ- Despite starting from a better basis than astrous flood along the Indus. ce 2.3 million tonnes of ‘white gold’,an in- in 2010, Pakistan’s cotton and textiles in- If even only part of Pakistan’s cotton crease of just on 20 per cent after the night- dustry faces problems. Bizarrely, despite harvest were to fail, consumers in Germa- mare of 2010. Pakistan is the world’s last year’s floods, there is now too little wa- ny would notice. »Because of the high fourth-largest producer; only China, In- ter, and most cotton plantations require worldwide demand, we don’t have the op- dia, and the USA harvest more cotton. irrigation. Long-term statistics show that tion of turning to another country to sup- Matching the increased supply comes a average rainfall is decreasing, while the pri- ply us,« explains Felix Ebner from Ger- constant increase in demand. The ICAC ce of fuel for the pumps and generators re- many’s national textiles and fashion asso- estimates that approximately 24.7 million quired for irrigation is going up. To make ciation. Margins are low, and that means tonnes of cotton will be processed in matters worse, many hours are lost to po- that customers and consumers will soon 2011/12. Despite the growing competition wer blackouts that make it impossible to start to »feel the pain« of price rises.

36 BusinessReport 4/2011

HEALTH CARE

Libya’s health system, a leaky ship even before the civil war, due to the failures of the Gaddafi regime, is now a complete wreck. The market abounds with opportunities – and risk – for hospital construction companies and medical technology suppliers. The number one priority, however, is emergency aid for Libyans themselves

38 BusinessReport 4/2011 HEALTH CARE p i c t u r e : M é d e c i n s S a n s F r o n t i è r e The s Libyan patient by Christoph Dreyer

Many of the injured were treated across the border in Tunisia and hospitals there are espair isn’t quite the right word, but the- still overloaded. »Médecins Sans Frontières« re is a sense of desperation in the words are providing emergency services. D of Abdelminam Benhalim as he describes the state of the health system in his native Libya. With decades of experience as an anaesthetist in ho- spitals there, he came out of retirement instantly when the revolution against political leader Mu- ne carry out simple procedures like vaccinations ammar al-Gaddafi broke out. Now a member of and routine examinations. the crisis unit in the Ministry of Health established »The situation is absolutely miserable,« says Abu by the transitional government, he spends his da- Bakr Traina, the medical coordinator in Misrata, ys trying to organise treatment in other countries the city that was besieged by Gaddafi’s troops for se- for severely injured patients and track down me- veral months. »We don’t have enough beds, enough dical supplies for hospitals. medicine, or enough staff.« The main hospital has »Everywhere you look, there’s a gap,« says Ben- been destroyed and there are no specialist hospitals. halim. »We don’t even have enough plaster.« Ma- In the entire city, there are only ny laboratories are not operating because they ha- 110 beds for trauma patients and ve no supplies. »We can’t even get simple blood test a pathetic nine intensive care beds. »We don’t even have reports. We have the equipment, but not the cons- New cases arrive from the front enough plaster« umables.« every day, usually 50 or 60, but The civil war has put the Libyan health system sometimes as many as 200. Ap- to the ultimate test. Caring for 10,000 injured pe- proximately 12,000 people have been injured in the ople is a Herculean task for a country with very fighting in Misrata and the surrounding area since little experience of war, especially when there are February. In order to help as many people as pos- ongoing power blackouts and occasional shootouts sible, doctors usually operate on patients the day in the cities. At the peak of the battles there were they arrive and send them home the next. reports of hundreds of rotting corpses in the ho- Because of the lack of facilities and supplies, tho- spitals. Some places did not even have running wa- se in charge have opted for large-scale evacuations. ter. Basic medical care was weak before the war and Every second day or so, the injured are sent abroad. fell apart afterwards, reported the World Health So far, Traina says, 2,600 people have been sent to Organisation (WHO) in mid-2011. The system was »Egypt, Jordan, Tunisia,Malta, Greece, Turkey and Ita- not even managing to treat war casualties, let alo- ly. All those countries are looking after our patients.« >>

BusinessReport 4/2011 39 HEALTH CARE p i c t u r e : U N H C R / H é l è n e C a u cessful vaccination campaigns against polio, me- x asles, tetanus and whooping cough, among others. In 2009, life expectancy was 72, and the infant mor- tality rate of 19 in 1,000 live births was not even a third of the international average. Efforts to establish the private health care sector were half-hearted. The World Health Organisation, reporting on a comprehensive survey undertaken in 2007, criticised inconsistent rules that created an unpredictable environment that was preventing private hospitals from investing. Specialist hospi- tals gained operating permits, but the criteria for the awarding of permits and for subsequent in- spections were vague. Doctors of the »International Medical Corps«, on a Behind these occasionally acceptable perfor- rescue ship, stabilising a patient who was injured in mance indicators lay a health system plagued with the siege of Misrata in May. uncertainty, corruption and shortages. Specialist care outside the main cities was so patchy that so- me Libyans never got to see an optician or derma- tologist, Benhalim tells us. It was not uncommon for specialist hospitals to be closed for years on end for construction work; But Libya’s closest neighbours are overwhelmed by money often ran out after a project had begun. So- the needs. Around 500 seriously injured patients in metimes the actual goal was simply to open a pro- Tunisia are reportedly still waiting for help that is ject officially on Revolution Day, even if there we- nowhere to be found. During a visit to Libya in re not enough staff to man it, says Benhalim. And October, Germany’s Minister of the Economy, Phil- Traina describes how Gaddafi’s legacy makes the ipp Rösler, promised to accept some war casualties problems in Misrata even worse. »We are the third- in Germany; the first have since arrived. largest city in Libya, with a population of 450,000, The problems in the Libyan health system are but our main hospital was closed for renovations exacerbated by the fact that thousands of doctors for five years. Just when it was beginning to be func- and nurses, including the foreigners who had been tional again, it was destroyed by Gaddafi’s tanks. plugging human resources gaps in the system for That’s why there’s no actual hospital here.« years, fled before the war began. There is a serious Family medicine has always been deficient in Li- and chronic shortage of qualified bya, so during peacetime, many Libyans went to Dependent nurses, due to the lack of proper hospitals and specialist clinics with minor com- training courses. »We don’t have plaints, monopolising capacity that should have on hospital tourism specialists for the operations we been allocated to more serious cases. need to do – neurosurgeons, va- Added to that were the long-term consequences scular surgeons, orthopaedic sur- of the sanctions against the Gaddafi regime during geons,« says Traina. »And we urgently need quali- the 1980s. Standards fell because Libyan doctors, fied intensive care nurses.« who had received very good training initially, we- Libya’s health system was desultory even before re unable to go abroad for professional develop- the civil war, though there were some praisewor- ment. For years now, WHO has been noting shor- thy accomplishments under Gaddafi. The public tages in certain specialties, including cardiology, system provided free medical care for all citizens. radiology and anaesthesia, as well as a lack of qua- There was comprehensive obstetric care and suc- lified nurses.

40 BusinessReport 4/2011 HEALTH CARE

Many Libyans therefore opted for medical tourism. you are looking for: insulin, antiretroviral drugs, che- The government even provided LYD60 million motherapy supplies, immunosuppressants, psychia- (EUR 35 million) towards such trips every year, tric medication, vaccinations, blood products, labo- WHO said in its 2007 report, and this was supple- ratory materials, dialysis supplies or laboratory cons- mented by personal funds. »Basically, medical ca- umables. »Our dialysis equipment comes from re could not have functioned without hospital tou- abroad,« says Traina, of his facilities in Misrata. »The rism,« says Bassam Helou of Transumed, a compa- equipment still works, but we don’t have any spare ny based in Koblenz, Germany, that builds turnkey parts, and we don’t have the right hospitals. Before the revolution, he was negotia- dialysis fluid.« ting to build several multidisciplinary specialist ho- Circumstances forced medical Triage for spitals, as his contacts said that there was much still technology companies that have investments to be done in their country – not least because tre- been in Libya long term to switch atments abroad did nothing to provide emergen- to providing emergency assistan- cy care for those still in Libya. ce. Otto Bock Healthcare, a medium-sized compa- The arbitrary nature of the regime was a further ny from Duderstadt in Lower Saxony, Germany, for problem. »There was no real hospital planning, just example, has been involved in Libya for 20 years ›personal gifts‹ from the Gaddafi family,« explains and has built three centres in Tripoli and Bengha- Helou. »Overnight, it would be decided that certain zi, where 50 to 60 orthopaedic technicians adjust firms from certain countries should construct a cer- arm and leg prostheses to their patients’ individu- tain project.« The contractors were expected to start al needs. Before the war, perhaps two or three thou- construction immediately. »A lot of projects were bu- sand prostheses were needed per year, estimates the ilt to shell stage but were never operational.« firm’s regional representative, Karl Heinz Burghardt. Such imponderables created immeasurable risk Now there are hundreds more people whose limbs for foreign investors. »There was no statutory fra- have been amputated because of war-related inju- mework. You might be given a work permit at the ries. The exact numbers are unknown. beginning, but a few months later, they would de- »Each technician can make about two prosthe- cline to issue you with an entry permit. That un- ses per week,« Burghardt estimates. With the cur- predictability deterred investors.« rent staffing level, it will take a very long time to help As head of Transumed, Helou hopes that the all the amputees who need prostheses. Otto Bock new government will provide better legal regulation Healthcare is considering bringing in technicians of investment opportunities, and that he can ma- from Egypt and Tunisia to help it work through the ke progress on projects that were at the planning backlog more quickly. stage before the revolution. »I see opportunities for Helou has also shifted his sights to emergency German companies,« says Helou. »I can imagine it medical assistance and is trying to organise treat- becoming a very promising market, especially for ment in Germany for children with complex inju- diagnostics, paediatrics, metabolic disorders, acu- ries. In his view, Germany should make a move in te care and cardiology. There are some great busi- the diplomatic arena to make up for abstaining from ness opportunities in those areas.« the UN resolution on military intervention in Li- The heavily centralised procurement system has bya. »In Libya, we got the impression at the begin- also proved problematic over the last few months. ning that Germany did not back the revolution.« Before the revolution, medicines and medical pro- Any country seen to be lagging behind with in- ducts were ordered by Tripoli and distributed throug- vestment, waiting until the situation has stabilised hout the country. Supplies on hand locally were very politically, is running the risk of achieving quite the limited. In the chaos of war, it became even more dif- opposite. »You can’t wait until everything is in pla- ficult to obtain specialised medication for diabetics ce,« says Helou. »People need help now. If this re- and cancer patients. WHO believes that, months af- volution fails, it won’t be easy to argue against the ter the war, the cupboard is bare no matter what radical forces.«

BusinessReport 4/2011 41 HEALTH CARE

BIOTECH

sign and user friendliness, but the com- pany finds it almost impossible to match Good genes the prices of its Asian competitors, since products of this type are usually compa- tible only with others from the same ma- required nufacturer, which pushes prices up even further. Eppendorf’s latest annual report shows less than 2.9 per cent of turnover, approximately EUR 1.3 million, coming for Dubai from the Middle East. There are now dozens of manufactu- Life sciences are one of the best performing rers, particularly in the Indian subconti- sectors in the United Arab Emirates. nent, supplying Middle Eastern markets with cheap laboratory equipment. Some, A free trade zone and the liberal legal like The Life Sciences Delhi, supply turn- framework are attracting giants in the field, key laboratory set-ups from freezers to mainly from India high-performance centrifuges, all ‘Made in India’ and available 24/7 on the company website in Arabic. They benefit from by Nils Metzger strong links with laboratory customers worldwide via portals like tradeindia.com. It is worth remembering too, that many he term »life sciences« is a clumsy pical example of the way the authorities people working at UAE biotech companies one, covering as it does both the handle these matters: engaged couples in either have family roots in India or studied T practical scientific side and the en- the United Arab Emirates are now requi- at an Indian university. gineering and process technology aspects red to be tested for hereditary diseases and of the biosciences. Researchers and tech- genetic defects before they marry, which Asian companies nicians develop multidisciplinary labora- guarantees a steady stream of lucrative tory equipment and optimise work pro- business for screening suppliers. »The key undercut Eppendorf cesses. While Germany is occupied with question at the moment is how to reduce discussions about controversial patents costs and make screening more effective,« for gene sequences, the Arab states of the says Sanjida Ahmed, who heads up the Sanjida Ahmed from Eastern Biotech fol- Persian Gulf are pulling out all the stops company’s research section. The bulk of lowed a different path – she studied in Ja- to build the region’s reputation as a base the operating costs in laboratories come pan. In her opinion, changing mores in so- for high-tech companies. from equipment that wears out, like pi- ciety may make Dubai even more attracti- DuBiotech, an industrial estate owned pettes and gene sequencers, as well as ve in future: »Abortion is legally prohibited, by the government company Dubai Hol- consumables for the series of tests. but public hospitals are becoming more ding, has attracted the largest number of Hamburg specialist equipment manu- and more flexible about making exceptions companies since 2005. Fifty-two compa- facturer Eppendorf is the largest German for special circumstances,« she says. If po- nies, ranging from local dentistry research company operating in the Emirates, even litics permit, the situation in Dubai may de- laboratories to pharmaceutical companies though the main role of its Dubai branch velop along the same lines as in the Ne- Merck and Pfizer, have now set up shop in is simply to coordinate business rela- therlands, which has accommodated thou- the tax-free desert setting. tionships with its licenced dealers in the sands of women from countries with strict Eastern Biotech, another new arrival, is region. As many awards from professional anti-abortion laws since the early 1980s. the region’s largest supplier of genetic in- bodies confirm, Eppendorf’s products are So there is potential for the medical tou- vestigative procedures. Its success is a ty- prime examples of innovative product de- rism market segment to grow.

42 BusinessReport 4/2011

HEALTH CARE p i c t u r e : N U P C O

Officials from the Saudi National Procurement Company for Medical Supplies: medical supplies and technology can be bought in, but what about nurses?

NURSING CRISIS Saudization overdue? The Kingdom of Saudi Arabia is investing billions in the building of new hospitals and reforming training for health professionals

or the last year, Saudi Arabia’s he- Commission for Health Specialties, fami- The Kingdom is also investing substantially alth policy has been to ensure that lies withdraw all support from a woman if in infrastructure. The 55,000 beds in the exi- F the majority of workers in the he- she decides to become a nurse. sting 400 or so hospitals will not be enough alth sector are locals. Until recently, the for a population that is expected to grow to situation has been quite different: »In Sau- Moving away from out-dated methods 29 million by 2015. 19 per cent of the natio- di Arabia a Westerner emerging from an nal budget is now spent on health care, with anaesthetic haze after surgery might for a Nevertheless, Saudi Arabia is still paying USD 18 billion set aside for the building of moment imagine he is back in his home for expertise from outside and internatio- 121 new smaller specialist hospitals and the state,« says British newspaper The Tele- nal employment agencies are jam-packed renovation of 66 existing such hospitals, ac- graph in the »Expat guide to Saudi Arabia« with positions vacant for doctors. A study cording to a Ministry of Health plan relea- on its website. by the »German Orient Institute« in March sed in June. It’s an open door for manufac- This is partly because half of all Saudi 2011 noted, however, that change is under turers of medical equipment. Indeed, im- Arabian student nurses drop out of trai- way in nursing training. Training is mo- mediately following last year’s National ning. The lowly status of nurses is such a ving away from frontal instruction by a Dialogue, Health Minister Abdullah al-Rabia pressing problem for Saudi Arabia that the teacher at the front of a classroom to in- scored such a substantial increase to his bud- »National Dialogue«, an initiative by the corporating more practical components get that the German medical journal Ärzte- royal family to promote internal reform, is and using English as the language of in- Zeitung could not resist rubbing its hands in addressing the matter. According to Sabah struction so that nurses will be able to com- glee as it announced: »Saudi Arabia a mag- Abu Zanada, an expert from the Saudi municate with foreign doctors. net no longer only for pilgrims.« mmo

44 BusinessReport 4/2011 HEALTH CARE

ORTHOPAEDICS

A North German YOUR CHALLENGE: OUR AREA OF treatment for Arabia SPECIALIZATION Federal state Lower Saxony and its most succesful FOR OVER health care provider, Otto Bock, jointly lead up 15 YEARS to the Middle East’s trade fair »Arab Health« with a special event of their own SUPPORTING INTERNATIONAL ASSIGNMENTS WITH UNMATCHED he second »German-Arabic Sym- to know latest developments for artificial PROFESSIONAL posium on Advanced Orthopae- limbs for double transtibial amputees in SERVICES T dic Treatment Concepts« will be a comparison to able bodied athletes. held on 22 and 23 January in Dubai wit- Issues regarding education, teaching, an hin the framework of the Arab Health management of trauma care are to be con- 2012. During two days, international phy- nected; patient assurance and clinical path- WE KNOW THE ISSUES sicians, therapists, orthopaedic technici- ways will be topics of presentations as well AND PROVIDE ans, and manufacturers will be brought the newest insights about incidents with TAILORED SOLUTIONS together for an open discussion of the la- mass casualties and post-traumatic conse- test developments in the field. quences. FOR SMOOTH AND This event, taking place for the second The topics covered during the sympo- SEAMLESS MANAGEMENT time, has been initiated by the North Ger- sium will also be included in events which OF EXPATRIATES man federal state of Lower Saxony toget- will continue during the most important he- her with its partners Otto Bock Healthca- alth care trade fair of the Arab world in the re, global leader of innovative products German Pavilion from 23 to 27 January. for people with limited mobility, and the Established over three decades ago, the THE orthopaedic clinic of the Hannover Me- Arab Health Exhibition and Congress is BDAE GROUP dical School. the largest international health-care event WE SUPPORT YOU in the Middle East and the second largest From accident victims to in the world. Held at the »Dubai World WITH OUR Olympic champions Trade Center«, it’s to present more than KNOWLEDGE AND 60 countries and planned to attract over EXPERIENCE This year, the symposium will be opened 65,000 medical professionals from across by Lower Saxony’s minister of economics the world.

Jörg Bode under the motto »from acci- ! BDAE GRUPPE ! dent victims to Olympic champions«. The CONTACT KÜHNEHÖFE 3 event will explore multi-disciplinary and NGlobal 22761 HAMBURG innovative therapies in the fields of trau- Dr Anne Hopert FON +49-40-306874-0 FAX +49-40-306874-90 ma surgery and of orthopaedics. Jointly, phone +49 (0)511 89.7039.16 [email protected] the participants will, for example, learn e-mail [email protected] www.bdae.com

BusinessReport 4/2011 45 HEALTH CARE i l l u s t r a t i o n : L e s p r e n g e r

DATA

amount of information that gets lost as pa- The superchip tients move between the national health system and private clinics. According to EIA, the authority responsible for issuing Now Abu Dhabi health authorities want to store the identity cards, about a third of all me- patients’ health records on their identity cards. dical files are either never passed on or Useful transparency or erosion of Emiratis’ privacy? reach their destination incomplete. Meanwhile, the implementation of a statutory health insurance scheme in Du- It was a huge administrative exercise – Negotiations are under way as to how the bai is not going as smoothly as planned. since 1 November, all citizens of the Uni- new ID cards might be made to replace the Local media have reported that the ex- ted Arab Emirates have been required to long-standing insurance cards that citi- pensive package of features known as register for a new personal identity card. zens also use, explained Zaid al-Siksek, »Enaya«, intended exclusively for civil The new card is supposed to make it ea- Director of the Health Authority of Abu servants, is to be revised after careful exa- sier for them to deal with government Dhabi (HAAD). Health records could al- mination. To keep costs down, the agencies and make purchases, and stores so be stored on the card, Siksek said du- HAAD is planning to introduce a semi- fingerprints and an individual electronic ring the fifth Abu Dhabi Medical Con- public insurance scheme based on the signature on a chip. But the government gress at the end of October. The main Daman Health Insurance model in Abu isn’t stopping there. thing that prompted the step is the vast Dhabi. metz

46 BusinessReport 4/2011 Niedersachsen. German for Business

Niedersachsen, the logistics state, connects the world by sea, air, road and rail through its central location, where the conti- nent´s north-south and east-west transportation routes inter- sect. It is the home of Volkswagen, Airbus, Salzgitter Stahl, Meyer Werft Shipyard, Continental and TUI, to name a few. Hannover is known for the world’s biggest trade fairs as CeBIT and Hannover Messe.

• 8 million inhabitants • Hannover, state capital, 516,000 inhabitans. • centered airport in Hannover

Niedersachsen’s economic strengths

Logistics Energy Automotive Food industry Life Sciences

• Nine seaports, plus JadeWeser • A broad energy mix: natural • Volkswagen Group is one of • Niedersachsens food industry • Niedersachsen is home of Port – Germany’s only deep- gas and crude oil, biomass, the world’s biggest car manu- chain: crops, livestock farming, around 250 life science compa- water port – from 2012 wind power, offshore and facturers food safety, and food processing nies solar energy • Comprehensive network of • Some 700 businesses in supply • One in two chickens, one in two • More than 11,000 healthcare logistics hubs: an excellent • A leader in all sectors of industry potatoes, one in five litres of milk professionals, over 200 high- infrastructure for intermodal renewable energies: intensive produced in Germany come from grade hospitals, clinics, rehab- transport use and development of the • High degree of research in the Niedersachsen ilitation facilities technologies of the future automotive sector

– Trade & Invest

Niedersachsen Global, NGlobal, is the foreign trade and inward investment agency of the State of Niedersachsen. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to Niedersachsen companies that seek to enter into foreign markets. For more information visit us online and get in touch with us at: www.nglobal.com

For more information please contact – www.nglobal.com HEALTH CARE

PLASTIC SURGERY

Would you like a facelift with that? Innovations dreamt up by Beirut’s plastic surgeons – including ducking out during the lunch hour for a beauty treatment paid for by a loan from the bank – have made the world headlines and turned their city into one of the hottest markets for ‘appearance’ business

by Björn Zimprich

ven the ancient Egyptians were be- known of these, was first heard of in the be- hour. »These days, you can go and have a tre- auty fanatics. Papyri confirm eff- auty industry in the early 1990s, but there is atment during your coffee break.« The line E orts at plastic surgery in the Nile now a whole string of similar products with between cosmetics and beauty surgery is Valley as early as 1,600 BC. In the 21st brand names like Estelan, Deflux and Re- blurring all the time. century, it is Beirut’s turn to become the stylane. Restylane was one of the first ‘fil- The growing Lebanese market is bursting focal point of beauty surgery in the Midd- lers’, products based on hyaluronic acid, with beauty businesses. Silkor supplies laser le East. There are more than 300 appea- which has the almost magical property of technology. Fattal distributes implants ma- rance surgeons in the city, and beauty cli- being able to store up to six litres of water de by Mentor. DIMA Healthcare, UPO and nics stacked sky-high in the tall buildings per gram. It’s a »secret« that Eline Nehme, others supply Beirut’s beauty surgeons with in suburbs like Hamra and Verdun. Manager Sales and Marketing for Medica, a vast range of products and staff. Improving a wrinkle here, flattening a which sells Restylane and many other fillers chin there … people in Lebanon are far less and special equipment, calls the »call for wa- inhibited than those in Europe about ad- ter«. There will be a product or item of »Injections mitting to resorting to surgery and even go equipment to do whatever you want done: go beyond age shopping immediately after the operation inject wrinkles, rejuvenate the skin, enhan- sporting nose bandages. Spending several ce the lips or reshape facial contours. or gender« thousand dollars on self-beautification is not Injections go beyond age or gender. The- considered embarrassing at all. Rather, it is re’s a product to suit everyone,« says Neh- Among the expat pharmacists is Roland Toh- a way of showing how rich one is. me in a conference room on the 12th floor me, 37, who practices at several different cli- One factor that has made people much of the Mallah Centre in the Beirut suburb of nics. Today he’s at the »Beirut Beauty Clinic« less resistant to the idea of interfering with Jal el Dib. Medica is a market leader, with of- in the suburb of Zalka. Smog from traffic on nature for the sake of beauty is the advent fices in Dubai and Saudi Arabia and an an- the Zalka Highway has faded the façade of of non-invasive methods. There is not a drop nual turnover of USD 30 million. Beirut is the ten-storey building, but inside, every- of blood to be seen, and the scalpel is usu- a regional office. Fillers offer a number of ad- thing revolves around beauty. ally left in the drawer. Instead, patients re- vantages, especially for busy people, enthu- Black lacquered wood, a white tiled floor ceive subcutaneous injections of a variety of ses Nehme. Not only is there no blood in- and modern art works in bronze adorn the medically active substances. Botox, the best volved, but treatment lasts no longer than an rooms on the fourth floor. The whole area

48 BusinessReport 4/2011 HEALTH CARE p i c t u r e s : B j ö r n ^ Z i m p r i c h

Sami Saad is chairman to an Specialist Roland Tohme is a Eline Nehme, representing Medica, interest group, promoting Lebanon’s familiar face at seceral beauty sells everything the beauty industry beauty business. clinics in Beirut. could want.

is immaculately clean. Patients sitting in the terest per annum, so it only just pays its A new nose waiting room can be watching television on way, but Mezher admits that where it has plasma screens or leaf through the adverti- been worthwhile is in the profile it has gi- without the wait sing brochures that showcase the latest trends ven the bank, with media coverage all over and techniques in appearance medicine. the world, including on CNN and the BBC. summer. »Most of my customers are Leb- Dr Tohme is unreservedly optimistic ab- One might expect to find the market anese who live in other countries and Arabs out the future: »Everyone in Lebanon is tal- saturated, considering that Lebanese have from the Gulf, but I did have two patients king about beauty operations. Everyone’s been able to borrow money for appearan- from Germany just recently,« says Sami thinking about it, even the middle class and ce surgery for years now, but new clinics Saad from his clinic in Hamra, Beirut. people at the bottom of the heap. They sa- are opening all the time and the existing Saad is Chairman of LSPRAS, the »Leb- ve their pennies for an operation. I can’t see ones are expanding, thanks in part to »be- anese Society of Plastic, Reconstructive any end to the boom.« auty tourism«. Between 10 and 40 per cent and Aesthetic Surgery«. The organisation For those who feel that saving money is of the patients in Beirut’s clinics come from is passionate about safeguarding and pro- wasting time, there are special offers. First abroad, drawn by the good prices. Why moting the reputation of Lebanon’s beau- National Bank will lend up to USD 5,000 for not, when a top surgeon will do a nose job ty industry internationally. From 25 to 27 appearance surgery. The idea came from the for just USD 2,000? November, it held the second internatio- bank’s marketing manager, Maher Mezher. My research shows that treatments costs nal congress of beauty surgeons in Beirut, »After the war with Israel in the sum- two or three times more in other Middle hosting experts from the USA, Canada, mer of 2006, we launched the ›plastic sur- Eastern countries, particularly in the Gulf Belgium and Germany. gery loan‹. It was quite deliberate – after states. We have doctors here who studied The congress was to feature live opera- all the war and destruction, we wanted to and trained in Europe and the USA. And tions as a form of professional develop- turn things around, set an example,« says when they’re not working, it’s a great pla- ment for local surgeons. Such commit- Mezher. It has certainly been very suc- ce to live, with beautiful Mediterranean ment reveals Beirut’s determination not cessful PR-wise: »Calls to our loans de- beaches and holidays in the mountains.« to let anything get in the way of its posi- partment shot up from 50 a day to 400. We Some clinics offer all-inclusive packages tion as the »capital of the beauty industry«. have between 2,000 and 3,000 customers like »nose, bust and beach«. Some custo- And nobody doubts that the boom will a year.« The bank charges 5.5 per cent in- mers even came from faraway Australia last continue.

BusinessReport 4/2011 49 CONSUMPTION

HOUSEHOLD GOODS p i c t u r e : H e n k e l

Moroccans buys Tide, E g y p Egyptians stick to Persil t Brands aren’t meant to rule our lives, but life sometimes turns out like that anyway. The strange tale of washing powder brands in Morocco and Egypt

by Mohamed Amjahid

Persil »Abaya« keeps the fabric nice and black.

ewlyweds, a freshly scrubbed plains a loyal customer. In 10 years, the wives found the idea of »Made in Germa- shirt collar, the tiniest hint of a 215-gram box has gone up by only the ny«– repeated incessantly in the adverti- N smudge – it almost led to divor- equivalent of five euro cents. For »ages« it sements – so compelling that, according to ce. Thank goodness for »Tide«, the was- has cost five dirhams, or around 50 euro Henkel, they are »100 per cent satisfied«. hing powder that housewives know saves cents. »We advertise very assertively on the the- marriages! The 1960s advertisement is still There is little point anyone else trying to me of German technology and it hits the playing somewhere in the backs of the compete in this market, at least for German mark,« says Hend Khalil from Henkel’s minds of Morocco’s housewives, still bu- company Henkel, which owns Persil and Middle East section. In the advertisement, sily washing, when they send their children does not have a presence in Morocco. On- a plumber wearing a shirt and tie tells a cu- down to the corner shop to buy a packet ly the British-Dutch Unilever has dared try stomer that Persil will be particularly ea- of Tide. The product with the orange and sy on her washing machine, whereupon blue logo is especially popular with poor this Egyptian lady henceforth also »only people, who also use it as dishwashing li- There’s only one buys Persil«. The special product for the quid, an all-purpose cleaner in the kit- laundry product black abaya, the cloak that some Muslim chen and bathroom, hand soap and, if women wear, is very popular in Egypt, and they are really, really poor, as shampoo. its luck with its Omo brand, and shares the in Iran and the Gulf states. Tide has been around in Morocco sin- Moroccan market with Procter & Gamble. While Persil is used mainly for machi- ce the 1950s, when it was found only in For the poor, however, nothing has chan- ne washing, Tide was designed with a dif- the barracks of American soldiers. Parent ged. They still buy Tide. ferent technique in mind. The number of company Procter & Gamble was quick to At the other end of the Mediterranean, washing machines being sold in Moroc- spot a gap in the market and erected its most Egyptian housewives swear by a dif- co is increasing, but most customers – first factory in Casablanca’s industrial zo- ferent brand. At least a quarter of them go around 80 per cent – still wash by hand, ne. It now produces approximately 250 mil- along with the slogan »Doing the washing using a board. So German television vie- lion boxes of washing powder a year, sel- means Persil«. It all started in the 1960s, wers see an updated version of a 1969 ad- ling 700,000 a day. The best way to use it when washing powder imported from vertisement, featuring a smiling, down- is in 40-gram portions, »because people Düsseldorf quickly found its way from to-earth woman who says, over and over value the price stability of the brand,« ex- Lebanon to Egypt. And Egyptian house- again, »I only buy Tide!«

50 BusinessReport 4/2011 CONSUMPTION Do you prefer the OFFICE SUPPLY tangible? Ctrl+Cmd+Gulf Subscribe to the print edition Arab Business Machine was the exclusive agent for Apple of our renowned zenith-BusinessReport for USD 55.00/AED 200.00 products in the Middle East for many years, but the Emiratis’ dearth of strategy did nothing for their reputation amongst Mac fans. Now Apple is severing the cord by Nils Metzger

pple does not have a visible, acti- tisements that had appeared in the Emi- ve presence in the Middle East. The rates became clear. Apple was going to set A official reseller, Arab Business Ma- up its first online store for the region. »The chine (ABM), hides inside the two stores Middle East has huge potential,« said Ap- opened since an exclusive deal was signed ple CEO Tim Cook enthusiastically, if so- in Dubai. »Apple would be completely ir- mewhat vaguely, at a press conference. relevant if there were not Mac fans here The beginning of the end of the rela- too,« complained user Mazen al-Angary in tionship with ABM came back in 2007, February 2007 in his blog at MyMac.com. In those days, anyone who wanted an Ap- ple product had to have it mailed from an- Could FaceTime other country or talk to an unlicensed de- be pornographic? aler, which meant getting a device without the manufacturer’s warranty. when the iPhone arrived on the scene and Essentially, what has happened in the Apple concluded exclusive contracts with meantime is that Apple products have be- telephone companies in the region rather come a status symbol amongst the urban than with ABM’s parent company, Midis middle class in the Gulf. »We are having Group. Further down the line, that meant difficulty meeting the demand. There are that ABM did not benefit from the exo- long waiting lists of people wanting an dus of Blackberry customers when the go- iMac,« reports Chafik al-Kinany, the ma- vernment of the United Arab Emirates de- naging director of Saudi electronics chain clared Blackberry’s encoded data services itechia. To offset the hefty import duties illegal in 2010. and freight charges, he sweetens the bill by Neither ABM nor Apple is willing to adding extras like tickets to motor sport speak to the media about its plans for events. Sales are going so well that Kinany the future. But Apple customers in the has set aside most of the space in his se- Middle East are still not on an equal foo- ven stores in Riyadh for Apple products. ting compared to the rest of the world. In the US, Apple’s traditional base, word The much-vaunted video telephony ap- finally got through that there was a roa- plication »FaceTime« has not yet been ring trade in unlicensed Macs in the Midd- released in Saudi Arabia and the UAE le East. Early in 2011, rumours were rife because it contravenes the strict condi- that Apple intended to get rid of ABM tions for IP-based communication – ap- and open branches of its own. Finally, in parently because it could be used for por- September, the meaning of the job adver- nographic purposes.

Or order the PDF for free BusinessReport 4/2011 51 under [email protected] CONSUMPTION

ADVERTISEMENTS B i l d q u e l l e : A l a m e t i f a r i k a Turkish spirit, global standards

Turkey’s advertising industry is developing rapidly and becoming one of the most promising markets in the world. The country’s most successful agencies are those that stay in touch with regional values

by Yasemin Ergin

n 2004, a television advertisement sho- ly the campaign but also the name of the itage building in the Istanbul suburb of wed Dutch footballer Pierre van Hoo- new drink: »At first, Ülker rejected ›Cola Besiktas, where the company has its he- I ijdonk, who was contracted to Istanbul Turka‹ as a brand name outright. We had adquarters. From the outside, there is litt- club Fenerbahce at the time, drinking a can to fight long and hard to get them to ac- le to indicate that advertising for the big- of Cola Turka – and immediately growing a cept our idea, but we were proved right in gest markets in Turkey (as well as Ülker, moustache. Previous ads for the same brand the end,« he remembers. the client list includes Turkish Airlines, showed American film star Chevy Chase de- At the end of 2003, Ataoglu set up his Turkcell and Garantibank) is produced he- veloping typically Turkish – and entirely po- own agency, Alametifarika, with some of re: just an understated sign by the door- sitive – characteristics after enjoying the soft his most talented colleagues. The strate- bell and an installation made of orange drink. »Cola Turka, the cola that makes you gy they had used to good effect for Cola fluorescent tubes that form the words Turkish,« goes the slogan. Turka became the trademark of the new »Science, Art and Technology serving The ads, which hit the spot at exactly company: modern, original and expensi- Commerce«. Inside, Sumer – in jeans, a the right time with their humorous de- ve advertising that could hold its own an- simple white blouse and dramatic jewell- monstration of Turkish identity and self- ywhere in the world in terms of quality, ery – shows sample advertisements on her confidence, gave Turkish foodstuffs com- with content oriented around typically iPad, while another member of the team pany Ülker a market share of 20 per cent Turkish values and themes. serves cappuccino. In the next room, hip- almost immediately. One of the movers »Regional spirit, global quality,« is how looking young creatives sitting on a sofa and shakers behind them was Turkish ad- Yasemin Sumer, a co-founder and depu- are enjoying the morning brainstorming vertising guru Ugurzan Ataoglu, then still ty managing director of Alametifarika, session. Creative Director with the Istanbul branch describes the agency’s recipe for success. Alametifarika quickly became one of of the international agency Young & Ru- She is sitting in a light, airy room on the the most successful agencies in Turkey and bicam. He and his team developed not on- ground floor of a tastefully renovated her- is now the strongest of the nation’s inde-

52 BusinessReport 4/2011 CONSUMPTION

Modern campaign with local flavour: Alametifarika puts its recipe for success to work for its star clients.

pendent advertising companies. The Tur- Taking Turkey’s cultural and regional pe- kish market is still dominated by big mul- culiarities into account obviously works. The younger tinational agencies like Saatchi & Saatchi, Sumer: »We were the first to come up with generation has a TBWA and BBDO, which all have Turkish the idea and we’ve stuck wholeheartedly staff in branch offices in Istanbul, wor- with this strategy for many years now. Yes great appetite for king for Turkish clients. Except for Ala- we’re creative, yes we look to the West, and metifarika, most Turkish-owned agencies we orient ourselves to European standards brand-name are minnows competing with the inter- and always have the markets and strategies products national giants. It is not possible to mea- there in mind. But we make sure we never sure their success by comparing turnover, become detached from the region we live because Turkish agencies do not release in.« Most Alametifarika campaigns featu- understand it, in a modern, cosmopolitan that information. Instead, the agencies’ re Turkish faces and Turkish music or sto- city like Istanbul, where all the advertising profiles in the media, measured in terms ries. For a series of television spots for mo- agencies are based? Yes, says Burcin Tor- of television minutes, advertising space bile telephony company Turkcell, the team top, 35, one of Alametifarika’s creative di- and magazine pages devoted to their re- travelled to all corners of Turkey and pres- rectors. »We’re in the thick of things he- spective campaigns, give a good idea of ented the country and its people in all their re. Normal Turkish life is all around us he- which creative team is leading the race in regional and cultural diversity. »In the be- re in Besiktas. We don’t have to live out any given year. ginning, most people just smiled at us,« in the sticks to understand our country. Alametifarika has been number one or says Sumer, »but now many agencies have You can do that just as well here if you get two amongst the »top ten« successful agen- taken the idea on board.« out of the fancy suburbs. It’s not difficult cies in Turkey for years, the only Turkish- Is it really possible, though, to plumb if you also watch Turkish television se- owned agency to even make it into the list. the depths of the Turkish soul, to really ries and entertainment shows from time >>

BusinessReport 4/2011 53 CONSUMPTION

Founded in 1994, Turkcell – Turkey’s largest mobile telepho- ny provider, with 34 million customers and an annual revenue of almost USD 6 billion, was a great catch for Alametifarika.

54 BusinessReport 4/2011 CONSUMPTION p i c t u r e s : p r i v a t e

In the beginning, most people just Her boss, agency founder Ugurzan smiled at us,« says Yasemin Sumer, Ataoglu, is happy: »We were Alametifarika’s deputy managing proved right in the end.« director.

to time rather than just art house cinema compared to those in other countries. But strong regional brands that have the po- or ‘Mad Men’ (an American series about a there’s a lot happening, and we’re deve- tential to do well on the international mar- fictional advertising agency in the 1960s).« loping really fast.« kets. Jeans brand Mavi and electronics Tortop, who enjoys snowboarding, In Turkey, unlike in other countries in group Beko are already blazing the trail. funk music and independent cinema and the region, advertising did not have to in- There is much to attract companies to in- turns up to our interview wearing a car- vent itself from the ground up. There was vest in advertising for the Turkish market. digan and gumboots, also knows how ad- already a long tradition of advertising, so Though still very small by internatio- vertising is made in the West.A few years a well-established, fully functional indu- nal standards, Turkey’s advertising sector ago, she worked for Hamburg agency stry has been in a good position to relate is the fastest-growing market in Europe. Springer & Jacoby when Turkcell com- to a young, steadily growing population In the first half of 2011, TRY 2.27 billion missioned a campaign aimed at Turks li- hungry for brand-name products and a (Turkish lira, equivalent to EUR 922.7 mil- ving in Germany. The several months she lion) was spent on advertising, a 24 per spent at the agency’s head office in Ham- BBDO’s head man cent increase on 2010. The year before burg did not reveal any great behind-the- that, the growth rate was a whopping 36 scenes differences: »Of course, there are praises Turkey’s per cent. By comparison, Germany’s ad- specific cultural things to be observed vertising sector grew 2.3 and 2.7 per cent when it comes to humour or certain co- advertising industry in the last two years. des. On the whole, though, advertising When the board of BBDO, an interna- and creativity are universal. We don’t work higher standard of living. While the glo- tional advertising and marketing agency very differently from our German colle- bal financial crisis has also affected Tur- based in New York and with branches in agues.« There were a few small differen- kish markets, purchasing power has stay- 79 countries, held its annual general mee- ces when it came to the production faci- ed stable around the Bosporus and the ef- ting in Istanbul last May, the choice of de- lities, which are simply further ahead in fects have not been as severe as in other stination was no accident. Interviewed by the West. In Turkey, for example, it has parts of Europe. The huge growth poten- Turkish newspapers, CEO Andrew Ro- only recently become possible to train ca- tial in the Turkish advertising industry is bertson was enthusiastic about the state of mera operators specifically for adverti- due in part to the fact that comparative- advertising in the host nation. Turkey had sing. »Our spots were always filmed by ly few global brands have a presence in the potential to become the »leading star« top directors, but it makes a difference Turkey at this stage. There is still plenty for in advertising worldwide, he said. Coming whether someone is used to telling a sto- the consumption-happy Turkish shoppers from the head of the third-largest com- ry in 90 minutes or has learned how to tell to discover and enjoy in retail-land, so munication network in the world, the it in 40 seconds. That’s why so many Tur- conditions are perfect for businesses and wording of the prophecy sounded almost kish advertising spots are pretty lame advertisers. As well, there are numerous Oriental.

BusinessReport 4/2011 55 ARTS AND BUSINESS

CARPETS

The business is thriving on mythical powers: the Oriental carpet – be it from North Africa or Central Asia – swept into European palaces and even Russian folklore.

Treading softly Usually barely noticed, trade with Islamic carpets has established a niche with European and American collectors – against all challenges of this highly specialized business. Of all things political conflict in the Middle Eastern region has even supported this trend

by Alexander von Hahn

hough the Arab spring swept across an carpet was am epitome of the magic, development of the situation in the Midd- the Islamic world surprisingly litt- enigmatic Orient’«, says Edward Gibbs, le East. You may not be particularly inter- T le has changed in European auc- head of the Islamic department at Sothe- ested in what is happening there, but you tion rooms and galleries selling Islamic art. by’s. Though his London auction house can’t ignore it.« The Arab Spring has Elisabeth Parker, Head of Rugs and Carpets began selling Islamic art relatively recent- brought this interest to a new height. Dif- at Christie’s in New York, is content with the ly, the less than five million pounds of the ferences between Christians and Muslims, sale’s results: »It continues to remain true 2001 sale turnover look pale compared to tribal politics, Islamic doctrines, Shia and to itself – all the top lots are sold above the the record 64 million pounds of the eve- Sunnis are explored by world’s leading jour- estimate.« What is true for Middle Eastern ning sale this year. Together with textiles nalists. Colourful documentaries talk about politics is not necessarily true for Islamic the auction house sells Islamic metal wa- culture, history, world of adventure. »Peo- art – the market is as predictable as ever. re, ceramics, manuscripts and contempo- ple are attracted to everything different. Carpets remain popular among the Eu- rary art from the region. Though 9/11 is one of the lowest points of ropean collectors. Persian, Turkish, Mo- Paradoxically, Gibbs attributes this suc- our relationships with the Muslim world it roccan carpets were traded here for cen- cess to what he calls a »background noise«: is also a beginning of the surge of interest turies. »Like an old Russian icon, a Persi- »Since 9/11 the whole world follows the in Islamic art«, concludes Gibbs.

56 BusinessReport 4/2011 ARTS AND BUSINESS » T h e Trade of antiquities is connected to politics class of Turkish art collectors. »As Turkey colourful, covering floors by made-to-or- F l y i n in more than one way, the confrontation prospers, as it gains weight in internatio- der Persian carpets«, comments Nazmiy- g C a

r between the US and Iran is an example. nal affairs, more and more people are pre- al. Carpets were kept for centuries, passing p e t

« »We would like to be associated with cul- pared to pay top price for something from one generation to the next. – V

i ture and history, not nuclear weapons, or which only a decade ago was considered Not any more: »People rarely pay much C t o r Islamic fundamentalism.Yet, when talking to be a »niche product«. It might be spe- for what they regard as nothing more than V a s

n about Iran most people think of politics, culative – the demand is on the rise. But an interesting decorative element«, conti- e z o

v not art«, complains a London carpet dea- it may also be a reflection of the long- nues Nazmiyal. »Most of my American ( 1 8

8 ler, who lost many of his American clients term commitment to the Ottoman art«, clients look for smooth palette and co- 0 ) because of the embargo on all things Per- says Mark Dance of Bonham’s in London. lour structure, which is supposed to fit sian. First imposed by the US government Turkic rugs exhibit remarkable consi- into the interior, not to dominate it. Ger- soon after the 1979 Islamic revolution, the stency of design and colour throughout mans, on the contrary, prefer tribal rugs embargo was recently considerably broa- centuries and across the vast region, stret- with bright colours and strong, geome- dened. »Indeed, the market’s reaction was ching from Qashgai of Iran in the East to trical shapes. So do Italians, who collect negative«, says Mark Dance, carpet expert Sarajevo in Bosnia in the West. Nomads rugs passionately and often without much at Bonham’s auction house in London. and travellers, Turks used carpets for all regard to the overall condition. For them »Persian carpets are a large segment of the sorts of purposes: furnishings, travel ac- the most important criteria is the rug’s trade, while American collectors are among cessories, even architecture. Elaborate geo- aesthetic quality.« Also, »bigger« does not the most affluent when it comes to rare metric compositions, ornamental bands, always means »better«: »Monumental car- pieces of exceptional quality and prove- and elements of various rug design were pets are difficult to sell. Especially after nance.« Traditionally considered to be on to signify tribal and ethnic identity of the the financial crisis«, finds Nazmiyal. par with Flemish tapestries or Sèvres por- owner, reflect his social status. It was also »Small«, however, may also be a problem celain when it comes to luxury and splen- to warn off the evil spirits and to protect – modestly-sized prayer rugs fall out of dour, Iranian carpets, and caviar, became the livelihood of the family. »Tribal art is context in a European apartment – »car- off-limits for most of the overseas clients. always about power, strength, vitality. An pets business is a challenging field.« The void was soon filled by the Turkish original tribal rug always arouses curiosi- »What we have now is the ›change of and Caucasian rugs, their growth in value ty, provokes discussion. Ultimately, it guards‹«, says Detlef Maltzahn, head of surprising even the most seasoned pro- Rippon-Boswel & Co. in Wiesbaden, Ger- fessionals. After the collapse of the USSR, many, by their own accords the only spe- Caucasian rugs flooded the market, the Functionalism cialist auction house for antique rugs prices dived. Yet, recent auction records versus tradition worldwide. Dusting rugs is considered old- put those Caucasian textiles back to the fashioned, even archaic: »The new genera- market’s »front row«. In 2008, a Chelab- tion prefers the convenience of a floor he- erd Kazak, which belonged to the estate of brings people closer to the understanding ating, functionalism prevails over tradi- the glamorous East Coast heiress and so- of true nature of creativity and imagina- tion.« Almost every German auction house cialite Helen Hope Montgomery, was sold tion«, says Parker. has a rug sale with prices ranging from a by Freeman Auctioneers for the record »If there is anything in common bet- few dozens to a few hundred Euros. And USD 341,000. ween Freud and Warhol, it is their interest even at these levels much remains unsold. »Rugs from the Caucasus – Azerbaijan in Islamic rugs«, concludes Jason Naz- Yet, the market for Islamic carpets is and Dagestan – are quite popular with de- miyal, founder of the Nazmiyal Collec- on the rise. In a world often devoid of in- alers, collectors, and interior decorators«, tion of New York. He is a proud owner of timacy and personal touch Islamic car- says Elisabeth Parker. »Bright colours, a late 19th century Zeigler Sultanabad pets find their devoted followers. »Carpet bold, geometric designs, exuberance of from Sigmund Freud’s London residen- collecting is not a past time. It is not even composition make these pieces particu- ce. The rich and powerful use to collect a hobby. It is like crossing a desert by tra- larly attractive for almost every category rugs for centuries. »It is hard to imagine velling from one oasis to the next. It is li- of buyers and every interior, whether mo- a European court portrait without an Is- ke being married, growing old together. dern or traditional.« lamic carpet or drapery. With central he- The more you know, the more you want Anatolian rugs and Ottoman carpets ating in limited supply, most of the pala- to know. An investment of a lifetime«, says are particularly sought after by a rising ce owners went for something soft and Maltzahn with a smile.

BusinessReport 4/2011 57 MY ... BEIRUT Enjoy doing business with Phoenicians

Rooftop nightclubs, beautiful beaches, ski resorts only one-and-a-half hours away – cosmopolitan Beirut offers business travellers than most other Arab League capital cities

by Björn Zimprich

Beirut was known as the Paris of the East, side buildings with 20-year-old bullet ho- home to jet-setters, famous for its glitz les, Ferraris belonging to tourists from the and glamour, stylish architecture, high Gulf States parked next to 40-year-old prices and transitory relationships. The Mercedes limousines occupied by decre- 1990s brought the »Hong Kong look«, and pit taxi drivers who aren’t sure how they- glass towers and big business came to ’re going to make ends meet. A litre of pe- town. Solidere, the construction company trol now costs almost a euro and tips are owned by former President Rafic Hariri, all the more important these days. Those who was murdered in 2005, rebuilt the interested in property markets will want inner city, which had been laid waste by to head for the seaside suburb of Raouché. 15 years of civil war, virtually overnight. The trip by taxi will cost between USD 7 Beirut was – and still is – a city of ex- and 10. You’ll know when you’ve arrived tremes. There are fancy boutiques along- when you see the famous landmark Pige-

58 BusinessReport 4/2011 MY ... BEIRUT p i c t u r e : B e r t i l v i d e t / l i c e n s e d b y C r e a t i v e ons’ Rock. Enjoy the view while you eat at ta moves at snail’s pace in Lebanon. The C

o An impressive m »Bay Rock« or »Petit Café«, where the Leb- package costs USD 376, excluding taxes m o n anese mezze are excellent and a meal of an and a service supplement. s glow of A t t entrée and meat main course won’t set If you prefer to stay in the centre of the r i b u exclusivity t you back more than USD 20. city, you’ll find an elegant home at the i o n

S The »Mövenpick Hotel«, situated clo- »Phoenicia«, opposite the »Saint Geor- h a r e se to Pigeons’ Rock, is a nice place to stay, ges« yacht club, from USD 256 a night, A l i k e with indoor and outdoor swimming pools with free use of the business centre for Things are much quieter now, but not to- 3 . 0 and its own shopping centre. It advertises business guests. The streets and monu- tally stable. Former President Rafic Hari- U n p

o a »Business and bundle of benefits« pak- ments around the venerable hotel tell the ri and his convoy fell prey to a bomb at- r t e d kage featuring high-speed Internet access, dark side of Lebanese history. The near- tack barely 50 metres from the Phoenicia ocean view rooms, a breakfast buffet and by »Holiday Inn«, for example, is a me- in 2005. The assassination triggered the free use of conference rooms and the bu- morial to the 15-year civil war. Central- »Cedar Revolution«, which led to the Sy- siness lounge, as well as late checkout (6 ly located, with views to western and ea- rian occupying troops being expelled. p.m.), the last a particularly useful featu- stern Beirut, it was a coveted base for the Ready for a nightcap after a hard day’s re since most flights depart Beirut in the militias. Yasser Arafat was based here un- work? Beirut’s pub scene is livelier than evening. The »high-speed Internet« claim til the Israeli army drove him out of Bei- you might think, and the hotel bar is by is not entirely believable, however, as da- rut in 1982. no means your only choice. 2008 Club of the Year »Skybar« is legendary. Located at

p BIEL, the »Beirut International Exhibi- i c t u

r tion and Leisure Centre«, it exudes an im- e s :

J pressive glow of exclusivity, and you’ll ha- e s u

s ve to book well in advance to get a table. G .

P A good way to impress the people you are a s t o

r doing business with is to book before the trip, then turn up – apparently on the spur of the moment – at the Skybar reception, tell them your name and be shown to your table. A nice evening out can cost several hundred dollars and you’ll often hear pe- ople in Beirut drop into the conversation that they »know someone who reserves a table at Skybar every week.« Another rooftop option is the less ce- lebrated »White«. Perched atop the bu- ilding housing the publisher of the new- spaper al-Nahar, in Martyrs’ Square, it boasts a fabulous view of the Mediter- ranean and the Lebanon Mountains du- ring the day. Heading out of the centre on the mo- torway toward the east, you come to »Be Over 18« (BO 18). It’s difficult to see un- Sunset is a lovely time for a leisurely stroll along Beirut’s corniche. less you know what to look for, but any ta- xi driver should be able to take you there >>

BusinessReport 4/2011 59 MY ... BEIRUT

Greenbacks welcome for USD 6 to 10. Passing the critical eye of match those of St. Moritz, but neither the bouncer, you descend a long stairca- do the prices. And your Facebook friends se below ground level. Later in the eve- will be amazed when they see the first ning, hydraulic pumps open the roof, re- après-ski photos from your business trip vealing a starry sky to shouts and cheers to Beirut! from over-18 revellers. Quite often, to save money, it’s a good In the banking capital of the Levant there idea to spend a weekend between out- are plenty of ATMs that accept internatio- bound and inbound flights, but a Satur- Restaurants, bars, nal eftpos, Maestro or credit cards, but it’s day night in Beirut doesn’t mean you ha- clubs, and always worthwhile bringing a fistful of well- ve to miss out on the German football worn US dollar notes. The dollar is a han- league. Rue Monot is lined with British- hotels in Beirut dy, widely accepted method of paying for style pubs, Premier League on every te- things in shops, taxis or cafes. levision screen. The barkeeper the »Gree- Conversion is not difficult, as a dollar is dy Goose« is happy to switch channels worth about LBP 1,510. You don’t even ha- to the German League if you ask. There Al-Balad, Rue Ahdab, Downtown, ve to check the newspaper each day to see will be pictures, but not always sound – phone: +961.1 985 375 what the exchange rate is doing, because but then few viewers would be interested the Lebanese pound is tied to the US dol- in the Arabic commentary on the Dubai Al-Falamanki, Rue Damas, Sodeco, lar. While the ups and downs of the US cur- Sport channel anyway. phone: +961.1 323 456 rency have had the Lebanese economy on The beach is the place to be from May a rollercoaster lately, it makes life easier for to October. On Sunday afternoons, peo- Bay Rock Café, Avenue Général visitors to Lebanon. ple mosey along to the beach clubs on the de Gaulle, Raouche, Lebanese Mediterranean coast north of phone : +961.1 796 700 the city. From here to Byblos, the pictu- Saving the spirit of bygone times resque Nest, there are no public beaches. Skybar, BIEL Pavillon, Downtown, through years of civil war: Entry to a beach club costs USD6 to 22. phone: +961.3 939 191 Beirut’s luxury hotel »Phoenicia«. Depending on the location, there may be more on offer than just sand and sea. Bo- hotels: nita Bay, south of Batroun, has live bands, and the exclusive »Eddé Sands« also has swimming pools. Or opt for one of the InterContinental Phoenicia, beaches south of the city and travel Rue Minet El Hosn, Ain El Mreisseh, through the banana plantations of Da- phone: +961.1 369 100 mour Bay, perhaps to »Oceana Beach Res- Home to film stars and heads ort« and avoid the chaotic traffic between of state. p i c t u r

Beirut and Jounieh. www.phoeniciabeirut.com e : I n

The winter months bring pleasures of t e r C quite another kind. Qornet es-Saouda Mövenpick Hotel & Resort Beirut, o n t i n

(3,083 metres) and Mount Sannine Avenue Général de Gaulle, phone: e n t a

(2,628 metres) rise steeply from the co- +961.1 869 666 l H o t

astline, and the Faraya ski field is only Beirut’s only resort hotel with direct e l G r

90 minutes’ drive away. The ski lifts, access to the beach. o u powder snow and pistes may not quite m.moevenpick-hotels.com/beirut p

60 BusinessReport 4/2011 MY ... BEIRUT

Beirut i l l u s t r a t i o n by Blackberry : z e n i t h Beirut newbies with a Blackberry no lon- can put the money saved to good use in ger need to lug a guidebook around. An Beirut’s nightclubs. app for the ubiquitous business mobile Last year, Blackberry users were threa- devices, linking to the online portal Bei- tened with the loss of data services provi- rut.com, was launched at the end of Sep- ded by the Canadian manufacturer, RIM, tember 2011. Easy-to-find tips and high- when the governments of several Arab lights can be accessed with just a click. countries, including Lebanon, threatened The app has lists of hotels, restaurants and to block them. The company was refusing local authorities, and a directory of busi- to provide national authorities with the re- nesses in greater Beirut by type, as well as levant encryption codes. The ‘Blackberry upcoming cultural and festive events. The affair’ now seems to have been resolved. package is free to Blackberry users, who www.beirut.com/Blackberry

Everything you need to know: the new Beirut app reveals what’s up, what’s ‘in’ and where to go. Airport Code: BEY »Rafiq Hariri Airport«, named after the murdered President, is the gateway to Leb- anon. Since 2010, German airline Ger- mania has offered twice-weekly flights p i from Berlin, the only direct connection year and tickets can cost up to four times c t u r e

between the two capital cities. Lufthansa as much in summer, when many expat : A i r flies direct from Frankfurt to Beirut. Lebanese visit home. Budget airline Air p l a n e

State-owned Middle East Airlines Arabia flies between Beirut and Sharjah - P i c t

(MEA) will become a full member of the Airport. u r e s .

»Skyteam« programme in 2012, and flies A taxi trip from Rafic Hariri Airport n e t

from Düsseldorf and Frankfurt up to fi- to the CBD costs about USD 30. Busi- / B u l ve times a week, so frequent flyers with ness travellers with a business visa have e n t K

Air France, KLM, Alitalia, Delta and Aero- a shorter wait in the arrivals hall. Other a v a k

flot now have another way of earning air visitors are usually given a free two-week k o r miles. visitor visa. It’s best if there are no Israe- u MEA flies to the Gulf states several ti- li stamps in your passport. For longer mes a week, Emirates, Etihad and Qatar stays, you will have to apply to the state Airways even more frequently. Prices va- security service for a long-term visa – a ry considerably according to the time of process that is sure to test your nerves.

BusinessReport 4/2011 61 PERSONAL ASSISTANT p i c t u r e : I m STOP PRESS r e S o l t / l i c e n s e d b y Bauer C r e a t i v e stems tide C o m m A few days after construction company Bauer AG from o n s Schrobenhausen, Germany, had warned its shareholders A t t r

i not to expect a profit this year, it scored a bullseye. In b u IN OUR UPCOMING EDITION t i o November, it concluded an MOU with the Iraqi Mini- n S

h stry of Water Resources for renovations to the country’s a r e

A buildingconstructions largest reservoir in Mosul, northern Iraq, over the next l i k e six years. The total project worth is USD 2.6 billion. The- 3 Up isn’t the only way . 0

U re were a few details to be finalised, the company said, n p o

r but it was fairly sure of winning the contract. The final t e d AGENDA documents should be signed in the coming months.

3rd AHK-MENA Economic Forum EXPOMED Istanbul Democratisation – Opportunities – 11 to 13 April, Istanbul, Turkey Futures Markets There’s almost nothing left of the Emirates 12 December, IHK (Chamber of »sick man of Europe«. The Turkish Commerce) Frankfurt am Main economy has left its feeble EU cou- fires FIFA The lack of democratic participation by sins behind. Not even Brazil, Russia, the people of North Africa has never held India or China can keep up with it. In October, Emirates Airlines unexpectedly announ- German companies back from involve- However, the health sector has not ced that it would probably not be renewing its ad- ment in the region. This conference will exactly been a driving force in the pro- vertising agreement with football’s international go- take a closer look at how recent events cess, and this trip organised by the have opened up new opportunities. German Export Promotion Agency is verning body after the 2014 world cup. As the main www.frankfurt-main.ihk.de intended to unleash the real movers sponsor, Emirates signed an eight-year contract worth and shakers in the sector. USD 195 million in 2006. FIFA said it was »puzz- Medical Specialists: Strengthening www.gepa2.de led«, because the relationship had always been »very the Health Education Cooperation between Germany and the Near and Energy & Water Conservation Expo positive«. Emirates’ marketing boss Boutros Boutros Middle East 18 to 20 June, Manama, Bahrain criticised FIFA’s public image, hinting at the recent 12 January, Berlin Bahrain’s Minister of Energy wants to corruption scandal, saying that image was »more The Ghorfa (Arab-German Chamber of make the point that there is more to than just an internal problem« for FIFA. »They we- Commerce and Industry) health forum him than meets the eye, so he is ho- is still the most significant Arab-Ger- sting conferences on environmental to- re the only client where people asked us ›Why are man conference for the medical profes- pics. His record so far is not particular- you supporting them?‹« sion. What the »Near and Middle East ly impressive: the best thing Bahrain Association« (NUMOV) has to offer al- did this year to save energy was to can- ternatively, we can’t say: organisers did cel the Formula 1 Grand Prix. Indian faces not provide us with any information. www.beca.bh www.numov.org Turkish International Oil & Gas the music Arab Health 2012 Conference and Showcase 23 to 26 January, DIDEC Dubai, 21 to 22 March, Ankara, Turkey An Indian businessman from Dubai has paid a United Arab Emirates The big get-together for the Turkish oil USD 9.6 million fine for manipulating share pri- Higher, faster, farther. Surely it hardly and gas sector, with a focus on logi- ces. The British Financial Services Authority fined needs more advertising? Without a stics and energy transport. As a transit Rameshkumar Goenka, one of the richest busi- doubt, Arab Health is the key trade country, Turkey occupies a strategically fair for medicine and health technolo- important position, a trump card that nesspeople in the Gulf region, for abusing insider gy in the MENA region. »Can you af- state-owned Botas Petroleum Pipeline knowledge about Reliance Industries. It was the lar- ford not to come?« ask the organisers Corporation and others bring out in gest fine ever imposed on an individual by the FSA, confidently, while fascinated obser- negotiations month after month. but mere pocket money compared to the USD 92.8 vers keep an eye on ever-increasing www.turoge.com market volumes. They’re right – you million fine that the US Securities and Exchange can’t afford not to. Commission imposed on disgraced hedge fund www.arabhealthonline.de manager Raj Rajaratnam.

62 BusinessReport 4/2011 A D V E R T I S E M E N T Eurabia

Pages of the German-Arab Association (DAG)

ear DAG members and rea- The DLF office, which was established and expertise, runs advanced training ders, the German-Arab Asso- by a DAG delegation to Tripoli in October courses and organises and coordinates acu- Dciation (Deutsch-Arabische Ge- led by Professor Scholl-Latour, and its te humanitarian and medical aid. sellschaft, DAG) outclasses other groups German »mover and shaker«, Dr Bassam It will also become the first port of call and non-governmental organisations in Helou, have already laid the foundations for companies wanting to enter the Li- terms of synergy with its interesting con- of the humanitarian work. The office is byan market – a place where businesses tacts and member organisations and long currently working with a German part- and institutions can access legal advice track record of bringing together people ner to set up a prosthetics workshop in and assistance with official formalities. with a strong affinity for the Middle East. Libya to assist people injured in the war. Everyone involved is committed to pro- Help is urgently required, because neit- moting democracy in Arab countries in a her Libya itself, nor Tunisia, which has spirit of teamwork and cooperation. The already done a lot to help, can handle the latest DAG initiative is the German-Liby- consequences of war unaided. an Forum (Deutsch-Libysches Forum, As a forum where Libyan and German DLF), which aims to motivate partners institutions and businesses can interact, and stimulate supportive relationships the DLF facilitates networking amongst Deutsch-Arabische that will help Libya rebuild and develop. partners, promotes the exchange of experts Gesellschaft FACES OF THE DAG

Dr Bassam Helou, born in Syria in 1946, is Professor Christoph Rangger, born in Ali Memari Fard, born in Iran in 1959, is a a member of the advisory board of the Austria in 1961, is a specialist in ortho- member of the DAG board. He has more expe- DAG. In 1991 he founded Transumed paedics and casualty surgery at Kranken- rience than most of the ups and downs of busi- GmbH, a medical technology company haus Nordwest in Frankfurt. A long-stan- ness in the Middle East. Having developed a re- that builds turnkey hospitals. His support ding member of the DAG, he works with volutionary cement grinder that uses half the was instrumental in getting the DAG’s Dr Helou to provide preliminary medical energy of conventional grinders, he is pushing partner organisation, the German-Libyan care for Libyan war wounded. ahead with the project despite bureaucratic Forum, established earlier this year. He barriers. Mistakes are the only real way to le- has already been involved in helping arn, which is what makes him such an impor- wounded Libyans in Germany. tant adviser to and member of the DAG. A D V E R T

Dispatch I S E M E N T EUROPEAN ROAD MAP FOR NORTH AFRICA

Arabic revolutionaries have seen off their former dictators in North Africa with breathtaking speed. With NATO’s help, Libyan insurgents finally took the capital, Tripoli. The revolutions in North Africa and unrest in other parts of the Arab world have profoundly changed the way the West sees these countries. They have begun the journey, but will they get to »destination democracy«?

BY HARALD MORITZ BOCK

Who would have thought it possible, on- to reap the benefits of their revolution, that he would personally see to impro- ly a year ago, that the despots and nepo- not live in tent settlements amongst the ving the allocation of visas to business tists of North Africa would become ans- rubble. Having been through similar ex- people and students from Mediterranean werable to their citizens, before an Islamic periences in 1945 and 1989, we Germans countries: »It is unacceptable that it is so judge? The Tunisians were the first to see are uniquely fitted for the task. difficult for businesspeople and students their money-hungry president descend, It is time for the big political founda- to visit an export-oriented country like after years of being cosseted by Europe, in- tions that have representation in the Arab Germany.« He also promoted German in- to a state of such fear and dread that he world to step up to the plate. They have vestment in Libya: »I am aware that the- abandoned everything and fled. Next it their finger on the pulse of the mainly re is stiff competition in Libya, but the was the turn of his neighbour, eccentric youthful population. Their perceptions philosophy undergirding German foreign dictator Muammar Gaddafi, who was cor- and comments on how things are deve- policy is to establish a long-term rela- nered and killed in his birthplace, Sirte. loping deserve more weight and support. tionship between equals.« Despite the pro- But will the revolution, which has been But Germany’s demonstration that aid mise of improvements, the red tape driven mainly by young people, really for redevelopment is not just empty words around the visa application process has bring about the rule of law and new civil must go beyond just the target countries. not yet been untangled. society institutions, with justice for all? The litmus test of whether we really want Europe must not impose conditions on Each of the three North African countries to ensure similar environments on both the Arabs’ road to democracy. It needs to is developing in its own way. The results sides of the Mediterranean, and whether open up a bit and look further afield. Tur- of the elections in Tunisia were a surpri- we are really serious about seeing the birth key has become a role model for many se only to the ill informed. The hue and of functional democracies and commu- Arab countries, including in the political cry raised in Western media about the nities protected by the rule of law, is whet- arena. Apart from a few splinter groups, consolidation of Islam in Tunisia is a pro- her we open our borders to the wounded, Islamic political parties have changed di- duct of ignorance, xenophobia, exagge- crippled victims of the war, for whom rection and taken on board the desire of ration and Eurocentric arrogance. there is no hope of treatment at home. the people for democracy. They are not in Radical Islamists and opponents of the The German government’s plans are a the majority, but for most people, they Western defence pact seized upon NA- step in the right direction but do not go are the only trusted basis from which to TO’s »targeted killings«, which were far far enough, given the pathetic state of the deal with the legacy of corruption from from a textbook example of compliance health sector in Libya. regimes that were protected and propped with international law. We must now ju- The official Libyan spokesman on Eu- up by the West. Our role should be to stify and explain our actions and imme- ropean affairs, Ali Zaidan, expressed his support them, rather than instantly pu- diately come up with new measures that indignation about the situation at an event nishing them by labelling them as poten- are acceptable to all. We Europeans have organised by the German minister of fo- tial hotbeds of terrorism and making it al- to live up to our role as the guarantors of reign affairs, Guido Westerwelle, at the most impossible for them to get visas. democratic change in the region. Speedy Melia Hotel in Berlin on 29 September. One of Germany’s biggest political parties aid is needed if the fateful cycle of reven- Zaidan abandoned diplomatic restraint also has a religious background and va- ge and retaliation is to be broken. A Eu- and sharply criticised Germany’s restric- lues. We should emphasise what we have ropean version of the Marshall plan is re- tive policies on issuing visas to war casu- in common rather than the differences quired. The people of North Africa want alties. Westerwelle responded by saying that come between us.

Eurabia Pages of the German-Arab Society A D V E R T

I Parquet S E M E N T

HH The Emir Sheikh Sultan Bin Mohammad Al-Qasimi, the ruler of Sharjah, launches the German version of his book, »My Early Life«, published by Georg Olms Verlag, at the Frankfurt Book Fair.

right to left: UAE ambassador HE Mohammad Ahmed Almahmoud; Dr Sultan Bin Mohammad Al-Qasimi, Dr Amr Abdel-Hamid, Harald M. Bock, DAG Secretary General.

EYE TO EYE GERMAN-ARAB ENCOUNTERS

After the panel discussion on »Opportunities for Libya – Forward into the future«, in the Tuscany Room at the Würzburg Residence.

left to right: Harald M. Bock, HE Dr Aly Masednah El-Kothany, Norbert Hufgard, Oliver Jörg, Dr Klaus U. Hachmeier, Dr Konrad Schliephake, Professor Dr Eckhard Pache.

A DAG delegation visited Libya for four days, from 2 to 5 October, to assess the humanitarian situation.

left to right: Professor Dr Christoph Rangger, »Nordwest« clinic, Frankfurt am Main, Rainer Eberle, German ambassador to Libya, Dr Andreas Greither, CEO Agenolap, Susanne Osthoff, Professor Dr Peter Scholl-Latour, DAG President, Mohamed Elhoni, East Area Security Supervisor libyana mobile phone, Dr Bassam Helou, CEO Transumed, Harald M. Bock, DAG Secretary General. A D V E

Travel & events R T

Contacts I S E BUSINESS M E N February 2012 – GCC delegation to T Abu-Dhabi, Dubai, Sharjah, Qatar and Ambassadors of the German Arab Association Oman Lead by: Birgit Kemphues, Honorary You are interested in doing business with or in Germany? Consul to the UAE for Science and Rese- You don't have a contact yet and need a first reception centre? arch. Please phone the DAG office to re- Our German Arab Association Ambassadors will help you gister or ask for an itinerary. and provide you with first information for your market March 2012 – delegation to Algeria entry to Germany. Lead by: DAG Vice-President Ulrich Kienzle EDUCATION Kuwait Sudan / Khartoum Starting on 26 January 2012 – Mr Khaled Al-Hashani Dr. Mohamed Abushama delegation to Najaf, Iraq Phone +965 24829964 73 Phone +249 9122 566 46 visits of the holy sites in Najaf, Kerbala, Email [email protected] Email [email protected] and Baghdad; lectures, discussions; visits of the »Hauza« educational institution of Libya / Tripoli Tunisia / Souani-Djerba Shiite scholars, and other institutions for Mr Adel Mohamed Mr Jochen Klinckmüller dialogue and Islamic studies; exchange in Phone +218 914001712 Phone +216 98 664531 workshops and development of relations Email [email protected] between Western-Christian and Arabic- Oman / Muscat Shiite confessions; planning of future en- Mrs Heiderose F. Moossen Tunisia / Zarzis counters Phone +968 92010 246 Mrs Ulrike Schulz NEW YEAR’S RECEPTION Email [email protected] Phone +2162 528 1257 10 January, at the French Cathedral, Email [email protected] Am Gendarmenmarkt, Berlin Saudi Arabia / Riyadh Revolution celebrations with representa- Mr Jochen Hundt United Arab Emirates / Abu Dhabi tives from Tunisia, Egypt and Libya: Phone +966 504 233 752 Mrs Birgit Kemphues among other items lecture by Rachid al- Email [email protected] Phone +971 55 5 10 69 50 Ghannouchi, leader of the Tunisian Nah- Email [email protected] da movement, legalized only since 1 March 2011

DAG services for member companies Published by Deutsch-Arabische Gesellschaft e.V. Organisation of trips to Arab countries for business groups Calvinstraße 23 Information about specialist conferences in Arab countries and Germany D-10557 Berlin Access to DAG partner services in Arab countries Germany Advertising on the DAG website and the DAG magazine, EURABIA Phone +49 (0)30 / 80941992 Organisation of Arab language courses and crash courses Fax +40 (0)30 / 8094 1996 Courses to prepare managers for work in Arab countries [email protected] DAG head office and Cologne branch office as contact points www.d-a-g.de Regular discussions with business councils of Arab embassies Editorial supervision Harald Moritz Bock, Organisation of German-Arab specialist conferences DAG Secretay General Information service for visits to Germany by Arab government and Honorary President business representatives His Royal Highness Prince Faisal Referrals to Arab business associations; facilitation of contacts via DAG Bin Abdulmajeed Bin Abdulaziz Al Saud board members President Information about Arab business associates Professor Dr Peter Scholl-Latour Preparation for staff intending to visit Arab countries Job vacancies and offers – DAG online service Information about calls for tenders by government departments in Arab Vice Presidents Dr Ernst J. Trapp, countries Trapp Construction International GmbH Assistance in the event of difficulty obtaining a visa Oliver Jörg, MdL, Chairman CSU Würzburg Ulrich Kienzle, Eurabia Pages of the German-Arab Society TV journalist Taking Root.

The success of international cooperation projects is highly dependent on t

“Integrated Water Resources Management (IWRM)”, comprehending the interests, the potential and the cultural context of the at Cologne University of Applied Sciences and the University of Jordan, respective partner. In German-Arab development cooperation as well, con- Jordan tent in recent years has increasingly expanded beyond the specialist-tech- www.iwrm-master.info nical level to include overarching economic, social and political questions. t
“Renewable Energy and Energy E!ciency for the MENA Region This is why the DAAD supports the establishment of bicultural Master’s (REMENA)”, programmes with Arab countries. In these programmes, German and Arab at the University of Kassel and Cairo University, Egypt students acquire not only up-to-date technical know-how, but also regional www.uni-kassel.de/remena knowledge and intercultural communication skills. t
“International Education Management (INEMA)”, The following bicultural Master’s courses have thus far been funded within at Ludwigsburg University of Education and Helwan University, Egypt the scope of this programme: www.inema-master.com

anzeige_end_200x260_englisch.indd 1 11.08.2011 20:31:00 www.pwc.de Know where the journey leads

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