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(c) w w CONTENTS September 2020 COVER INTERVIEW ENERGY 38|Nuclear Power in the United Arab Emirates 11|Built to Last: the Quest for Social and Business Sustainability INSURANCE MANAGEMENT AND FINANCE 40|Beirut Explosion: Cache of Ammonium Nitrate Blamed 22 | Water Shortages Compound for Blast Killing Dozens, Desperate Situation in Beirut Injuring Thousands 24 | The UNRCO and ICD 42 | Gulf Insurance Group Announce Formation of Announces Net Profit Growth Advisory Committee for of 21.4% at KD 9.8 Million their Awqaf Research Project (US$ 32 million) for First Half of 2020 26|Al Baraka Banking Group Achieves a Net Income of 44 |Saudi Re Named Exclusive US$ 90 Million in the First Reinsurer for Inherent Defects Half of 2020 Coinsurance Program 28 |Jordan Islamic Bank Best Islamic Bank in Jordan for 46|ICIEC and OeKB Sign MOU to the Year 2020 Interview: Wafa Fayez Saab, Managing Director and board Boost Exports and Investments member of Tinol Paints International into OIC Countries 30 |Bank of Bahrain and Kuwait and Ithmaar Holding to Discuss Acquisition Plans 32 |Qatar Can Play a Vital Role in Srilanka’s Strategic Expansion 34 |Bilateral Opportunities Between Qatar- India MAIN STORY 50 |Critical Challenges Facing Desperate situation in Beirut: Following the explosions that took Syria place in Beirut, UNICEF and its implementing partners install water tanks in Karantina Hospital, schools & buildings - Source: UNICEF INFORMATION INDUSTRY 58 |GROHE Goes ZERO – GROHE Achieves Carbon-Neutral Production 30 | News From Around The World 54 | Middle East Markets QUICK NEWS 56 | First Look on Lebanon 8 | Middle East Scan 60 | Middle East Event 28 | Market Brief Calendar gig Announces Net Profit Growth of 21.4% at KD 9.8 Million 62 What’s New? for 1st Half of 2020: Khaled Saoud Al Hasan, gig’s CEO | Business Life (ISSN 1606-0067) published in Lebanon, by Business Life. Editorial, Executive, Circulation, and Advertising Offices: Gharios Bldg., Shoukri Ghanem Street, Beirut, Lebanon. Company and regional subscriber rate $50/year. Lebanon subscriber rate for individuals only $50/year. Rest of the world $200/year. Send address changes by e-mail to [email protected]. All rights reserved. Reproduction in whole or in part without written permission is prohibited. BUSINESS LIFE SEPTEMBER 2020 w 3 EDITORIAL Publisher and Editor in Chief The Ammonium Nitrate Bounty Afaf Issa Confiscated cargo of explosive material stored at Responsible Manager Beirut port. Ignorance or mischief? Afaf Issa Contributors Mona Sahli Marwan Hakim Photographer Raji K. To put your ads contact us at: Tel / Fax: (961-1) 370074 e-mail: [email protected] To subscribe contact us at: Tel / Fax: (961-1) 370074 Email: [email protected] For your opinions e-mail: [email protected] Catastrophe: Aftermath of the 2020 Beirut explosions (image credit: Freimut Bahlo) On the web: www.businesslife.net he story of the 2,750 tonnes of biggest explosion of ammonium nitrate ammonium nitrate that caused in human history. one of the biggest explosions The devastation left Beirut in shock. T began in 2013 when Moldovan- The explosion caused a 3.3 to 4.5 magni- flagged cargo ship MV Rhosus started its tude earthquake. Windows were blown voyage from Georgia to Mozambique. in. Flying pieces of broken glass left The dangerous cargo was to be delivered thousands injured and killed many. At to an African explosives company but the site of the blast, nine firemen and one technical problems caused the ship to firewoman lost their lives in a heroic at- make a stop in Beirut. Once in Beirut, the tempt to extinguish the fire. Around the situation quickly deteriorated with the port cars were blown off the ground and ship being assessed to be not seaworthy drivers severely injured. For days to come and the owners were unable or unwilling toxic fumes engulfed the city. to pay port fees. The cargo of ammonium Naturally, people are asking for an- nitrate was placed in a hanger at the port swers. Was all the ammonium nitrate still and the boat was left to deteriorate further there at the time of the explosion or was until it eventually sank in 2018. For 6 long some of it traded illegally? Why didn’t years the vast amount of explosive mate- anyone take action to relocate the danger- rial was abandoned at the port despite ous substance to a less populated area and 6 official letters over that period made stored with the necessary safety precau- by port officials imploring the judiciary tions? Why were repeated calls for action and other officials to take action on this from port officials left unanswered? ever-present danger. The 4th of August a fire got out of control at the port and the ammonium nitrate exploded into a mushroom cloud with shockwaves be- Please recycle this magazine ing felt as far as Cyprus. The end result: Afaf Issa (Malak Issa) 200+ dead, ten times as many injured and Editor in Chief, hundreds of thousands left homeless. The BUSINESS LIFE SEPTEMBER 2020 w 5 LETTERS www.businesslife.net Fitch Upgrades Tunis IsDB Group Private Hassan Ahmed The Coronavirus pandemic is wreaking economic activity reaches 2019 levels; just Re's National IFS Sector Action AlEfrangi, New Rating to 'AA(tun)' Response to COVID-19 CEO Ahli Bank havoc on global economies and Bahrain was 20% believe that we will return to pre- especially hit to worsen an already fragile COVID economic levels by Q1 of 2021. economy that was bailed out in 2018 with Cash flow management will have to a $10bn aid package by Saudi, the UAE and remain at the top of the private business August 2020 Kuwait. And this despite a winning strategy owner’s agenda and play a key part of the to fight COVID-19. family business’ risk assessment and plan- Hayatt Mohamad ning over the coming months. Muscat, Sulatanate of Oman Cash flow emerged as one of the greatest Rising Up to concerns in the face of current uncertainty the Challenge NEOM, the Saudi $500bn futuristic city by 49% feel satisfied with how their boards the Red Sea announced in October 2017 by of directors responded to the crisis, and 32% of Education Saudi Crown Prince Mohammed bin Sal- were very satisfied During man’s (MBS), was envisioned to be managed 34% said that the biggest economic by robots, be entirely powered by renewable impact of the pandemic was the increased Difficult Times energy, lit by an artificial moon, and become speed of digitalisation President Rev. Dr. Paul Haidostian addresses economic as well as academic challenges a haven for high-tech industries. Fredric Loizos Its construction is gathering momen- LETTERS tum with recent multi-billion dollar sign- ings, alongside other related gega projectss Please send your e-mails to: Lebanon.........LBP5,000 U.A.E................Drhm12 Jordan.....................JD2 Egypt......................EP5 Algeria................DZD200 Tunisia.....................TND4 Saudi Arabia.........SR12 Bahrain..................BD1 Oman.....................OR1 Europe.................Euro4 Libya..........................L.D4 Yemen......................YR10 [email protected] Kuwait...................KD1 Qatar...................QR12 Cyprus...................C£1 U.S. & Canada..........$4 Morocco...............MAD33 Syria.....................SYP150 The giga-projects, include Amaala, the Red Last issue’s main story: Sea Project and Qiddiya. Please include your name, address, After the Coronavirus and Low Oil It is an exciting project that I am looking and phone number. Letters may be Prices, Oman’s Future is More forward to visit once it is finalized. edited for clarity and space. Global PAUSE Joseph Spears The Gulf states helped the Palestinian Beirut, Lebanon To include an image in the ‘Pause’ sec- people with billions of dollars, which kept tion, send an e-mail to: Palestine alive. As the private sector moves from emergency [email protected] and ask for more response to managing the new realities, information. If your image is chosen, Hamed Abdallah the majority (51%) of survey respondents you will be awarded US$50, and a one Kuwait, Kuwait believe it will be another 18 months until year subscription. PAUSE French President Emmanuel Macron tours at Beirut Seaport 6 w BUSINESS LIFE SEPTEMBER 2020 MIDDLE EAST SCAN Algeria Algeria will allow its private sector to set up banks as well as air and sea transport com- panies for goods and passen- gers to reduce spending, Pres- ident Abdelmadjid Tebboune said recently. The move is part of wider reforms by the OPEC member to cope with K A Z A K H S T A N financial problems caused by a sharp fall in energy export GEORGIA UZBEKISTAN · ARMENIA AZERBAIJAN KYRGYZSTAN revenues, the main source of TURKMENISTAN state funding for the North T U R K E Y TAJIKISTAN African country.