THINK Q2 2011


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THINK Q2 2011

  1. 1. 2 0 1 1G L O B A L I S S U E S I N P E R S P E C T I V E q2
  2. 2. I S S U E 1 7 2 0 1 1G L O B A L I S S U E S I N P E R S P E C T I V E20 thE 2011 globAl 44 thE NEw worlD orDEr 60 AN APPY MEDIUM coMPEtIvENEss forUM China’s exponential growth as an economic Applications development has become big business,This year’s GCF’s had leaders from diverse backgrounds superpower has important lessons for other economies. growing into a multi-billion dollar industry in just a few years.discussing how innovation can add a competitive edge. 52 fooD INsEcUrItY 70 A vIEw froM thE toP 30 MINEr IssUEs – MAJor ProblEM While rising food prices threaten global stability, the A slew of upscale property openings around the After a spate of high-profile incidents, the mining solution may lie in alternate agricultural practices. world are revving up tourism.industry is working hard to clean up its act. 56 sPEllINg sUccEss 74 soN of thE soIl 34 trIcKs of thE trADE Dyslexics’ strong visual and spatial skills The second artist to exhibit under the aegis of Project The theft of millions in carbon credits has made and lateral thinking abilities makes them great 60, Abdullah Hamas’s work is deeply rooted in his heritageregulators sit up and take note. entrepreneurs. and culture.04
  3. 3. “rEcogNIsINg thAt Its coMPEtItIvE ADvANtAgE Is Not thrEAtENED If thE worlD UsEs solAr AND wIND ENErgY, thIs rEgIoN shoUlD sEEK to bEcoME thE EPIcENtrE of thE sUstAINAblE ENErgY EcoNoMY of thE worlD. wE NEED to UsE thE rEsoUrcEs UNDErNEAth thE groUND to crEAtE MorE oPPortUNItIEs for thosE PEoPlE thAt ArE oN toP of It.” ForMEr US PrESIdENT BILL CLINToN78 bEYoND thE boArDrooM regulars opinion Trends in fashion, gadgets and lifestyle for spring 11 sPEctrUM 83 fUtUrE thINKINg 26 cEo sPEAKs 51 thINKINg The best and brightest ideas An energy-efficient offshore to thINK forwArD from around the world marine research centre Meet Magatte Philip Stanton on the new Wade-Marchand, a developments shaping the 17 Art+cUltUrE 85 booKs compassionate capitalist. Middle East A look at the flourishing art THINK reviews the best scene in Saudi Arabia reads this quarter 40 thINK 64 whAt Do roUNDtAblE YoU thINK 69 ProfIlE 86 vIsIoNArY How cross-border bourses are Students from around the Calvin Chin is making Eco-activist and Nobel gaining a competitive edge world discuss if sports can tertiary education accessible Laureate Wangari Maathai through large-scale mergers. be an engine for growth 05
  4. 4. Sagia EdITorIAL AdvISor Fahd M Hamidaddin ProjECT LEAdEr Aseel A Al-Zamil motivate publiShing EdITor-IN-CHIEF Obaid Humaid Al Tayer GroUP EdITor + MANAGING PArTNEr Ian Fairservice GroUP SENIor EdITor Gina Johnson GroUP EdITor Catherine Belbin dEPUTy EdITor Shalaka Paradkar CHIEF SUB EdITor Iain Smith EdITorIAL ASSISTANT Belinda Igaya GENErAL MANAGEr GroUP SALES Anthony Milne SENIor AdvErTISEMENT MANAGEr Rowena Miranda dEPUTy AdvErTISEMENT MANAGEr Omar Al Eit GENErAL MANAGEr – ProdUCTIoN + CIrCULATIoN S. Sasidharan ProdUCTIoN MANAGEr C. Sudhakar dESIGN Design Studio INTErNATIoNAL CorrESPoNdENTS Steve Hill, Joanne Molina, Lisa Vincenti, Dorothy Waldman, Richard Warren, Samia Qaiyum C SAuDI ARABIAn GEnERAL InVESTMEnT AuTHORITy (SAGIA) SAGIA HEADQuARTERS Imam Saud Bin Abdulaziz Road (university Road), PO Box 5927, Riyadh 11432, Kingdom of Saudi Arabia, M T +966 1 203 5555 F +966 1 263 2894 E Y SAGIA InTERnATIOnAL OFFICES CM MIddLE EAST & AFrICA Hatem A Al-Ahmad; E EUroPE Mai Al-Torki; E MY FrANCE Lucile Pons van der Slikke; E CY ITALy Mai Al-Torki; E CMY GErMANy dahlia T rahaimy; E K UNITEd KINGdoM Sara Bouzo; E THE AMErICAS Ahmed Islam; E WASHINGToN dC Ahmed Islam; E EAST ASIA Noriko Sozuki; E WEST ASIA Meshari S. Al-Khaled; E MOTIVATE PuBLISHInG HEAd oFFICE Po Box 2331, dubai, United Arab Emirates T +971 4 282 4060 F +971 4 282 4436 E ABU dHABI E LoNdoN E: InTERnATIOnAL MEDIA REPRESEnTATIVES AUSTrALIA okeeffe Media; E CHINA/HoNG KoNG Emphasis Media Limited; E CyPrUS Epistle Communications & Media; E FrANCE/SWITZErLANd Intermedia Europe Ltd; E GErMANy IMv International Media Service GmbH; E INdIA Media Star; E ITALy IMM Italia; E jAPAN Skynet Media Inc.; E TUrKEy Media Ltd; E UNITEd KINGdoM Spafax Inflight Media; E UNITEd STATES redwood Custom Communications Inc.; E PrINTING Emirates Printing Press, Dubai Motivate Publishing LLC, on behalf of Saudi Arabian General Investment Authority, publishes THINK quarterly. SAGIA and Motivate Publishing do not accept liability for errors or omissions contained in this publication for whatever reason, however caused. The opinions and views contained in this publication are not necessarily those of SAGIA or of the publishers. SAGIA and the publishers take no responsibility for the goods and services advertised. All materials are protected by All rights are reserved. No part of this publication may be reproduced in any material form whatsoever without the written permission of the copyright owner, except as may be permitted by applicable laws.
  6. 6. edit Q2 2011tHinKing on a new planeRejuvenation has been uppermost on our minds as Wade’s “compassionate capitalism” rejuvenated an thinking. It implies THINKing about how routinewe come to terms with the turmoil of recent events, impoverished African economy, thereby creating jobs processes can be made more sustainable, more In TransIT II, 2010, ABdULNASSEr GHArEMwhether wreaked by nature or the financial markets. and wealth. Or in China, where the world’s largest efficient and more profitable. In this issue of THINK, our international country has embraced a new way of thinking to THINK of it as a spa treatment for your mind –correspondents set about finding ideas and become the world’s second-largest economy. Carbon rejuvenating the way you think about the same old,innovations that rejuvenate. credits have rejuvenated the thinking about how same old. Be it profit generation, as exemplified by Magatte businesses can cut emissions and still be profitable.Wade, one of the speakers at the fifth annual Global World-renowned lateral thinking expert Edward Catherine BelbinCompetitiveness Forum organised by SAGIA. de Bono says the way forward lies in value-added Group Editor 09
  7. 7. spectrum tHe rigHtplace at tHe rigHt time wrIttEN bY stEvE hIll revolutionary work in the fields of crop growth and medicine, the world’s mostliveable city, plus new hotels and football facilities for Saudi Arabia make the headlines 011
  8. 8. spectrumoN trAcKThe designs of four stations conceivedby Foster & Partners for the Haramainhigh-speed railway in Saudi Arabia havebeen revealed. The cities of Makkah, Madinah,jeddah and the developing KingAbdullah Economic City in the west willbe connected by the railway, which willprovide a new link for pilgrims travellingduring the Hajj. Islamic architecturaltraditions have influenced the designof 25 metre-high arches in each of thestations, due to be completed by May2013.toP of thE clAssSeven of the 10 most reputableuniversities in the world – and 45 of theleading 100 – are American, according CoUrTESy oF SINGAPorE ToUrISM BoArdto the results of a global poll publishedby Times Higher Education. Harvardwas at the top of the list followed by theMassachusetts Institute of Technology.Two British universities – Cambridge(third) and oxford (sixth) – also feature inthe top 10. japan is the only other nationto break into the top ten with Tokyo growing WealthUniversity in eighth place. surpass Canada, Britain and Switzerland to rankings were based on a survey of become the sixth richest economy in the worldmore than 13,000 academics from 131 by 2050. The report stated that Singaporecountries. retained its position as the globe’s richest sAUDI ArAbIA will become the richest average of more than $98,000 per annum, economy, in terms of GDP per capita by 2050, economy in the Middle East in terms of GDP according to a forecast by Citibank. at $137,710 followed by Hong Kong ($116,639) per capita by 2050 when citizens will earn an It also predicted that Saudi Arabia will and Taiwan ($114,093). Bloomberg Businessweek’s best undergrad B-school for 2011 for thE second consecutive year, the study abroad at an international institution likesPortINg goAlWorld football powerhouse real Madrid museum’s Boost University of Notre Dame’s Mendoza College of Business won top spot in Bloomberg Cass Business School in London or Bocconi University in Milan.has inked an agreement with the Prince thE forD Foundation has contributed $3 Businessweek’s ranking of the best undergraduate The rest of the places in the top 10 wentSalman Foundation to build a sports million towards the final construction costs of the business programmes in the USA. to (in order of ranking): University ofacademy in Saudi Arabia for 300 new building housing New York’s Museum for Students at Mendoza have the option of Pennsylvania (Wharton), Cornell Universitychildren. The Spanish club currently has African Art, which is due to open later this year. studying abroad in countries like Egypt and (Dyson), Ithaca, N.Y, University of Michigan68 academies in 32 countries. The Ford Foundation Lobby will be an South Africa. Second place went to University (Ross), Ann Arbor, Villanova University, Madrid President Florentino Perez said: integral part of the $90-million museum of Virginia’s McIntire School of Commerce Pennsylvania, University of North Carolina“The academy will serve as a marvellous which has been designed by Robert AM Stern (McIntire Undergraduate Business Profile). (Kenan-Flagler), Chapel Hill, Massachusettsalliance and will allow us to open several Architects. Other donors to the museum After McIntire is Emory’s Goizueta Business Institute of Technology (Sloan), Cambridge,others across the 13 provinces of Saudi include David Rockefeller, John Tishman and School (Goizueta Undergraduate Business and Georgetown University (McDonough),Arabia.” the Walt Disney Company. Profile), a programme that enables students to Washington, D.C.012
  9. 9. spectrumsky’sthe limitExPErts IN Qatar are getting creativein preparation for the 2022 World Cup. Dr.Saud Abdul Ghani, head of Mechanical andIndustrial Engineering at Qatar University,has unveiled the design of an artificial helium-filled cloud to float over Doha’s open-airstadiums, shading and cooling the groundsduring matches. E-booKs INNovAtIoN The project will be executed in collaboration rufoof, a bookstore application thatwith Qatar Science and Technology Park. targets the Arab audience with more thanEstimated to cost $500,000, the remote- 4,500 books covering various sectors,controlled cloud will be made of 100 per cent was launched in Saudi Arabia at thelight carbonic materials and fuelled by four Second International Conference onsolar-powered engines, flying at a very high e-Learning staged in riyadh.altitude to block direct and indirect sunrays. The rufoof app download is free Final Frontiers and can be downloaded from itunes. Users can view a wide range of titles in different categories and download DiScovery, naSa’s oldest surviving space shuttle, will be sent to the Smithsonian a sample to have the content available institute for display after being retired from active duty. it racked up nearly 240 even when the device is offline. million kilometres over the course of 39 missions in 27 years, spending 365 days in space. Discovery flew to the international Space Station 13 times and carried a total fAr tEAchINg of 184 astronauts. naSa’s two other shuttles are also set to be retired following the King Abdulaziz University has become end of the space shuttle programme. a member of the SAP University Alliance Programme – a global endeavour that helps faculty members teach students how technology can enable integrated business processes and strategic thinking. Professor osama Bin Sadeq Tayyeb, taking Flight economy-class seats. The remaining jetliners President of King Abdulaziz University, are in the new High Density configuration, said: “We have selected SAP’s business which accommodates 14 business-class and solutions for their functionality to support 327 economy-class seats. teaching, learning and business boEINg AND Saudi Arabian Airlines are range) is scheduled to be completed later this First class seats feature 39.1cm in-seat processes, enabling us to improve teaming up to modernise the carrier’s fleet of year. video monitors with PC power and powered our financial management, maintain 777s to enhance passenger experience. The Eight of the aeroplanes feature Saudi Arabian seat adjustment, while Business Class seats operational excellence, improve cabin modification programme involving the Airlines’ new Business Market configuration, have 30.7cm in-seat video monitors, also with productivity and ensure best-practice.” interiors of 22 Boeing 777-200ERs (extended with 24 first class, 38 business-class and 170 PC power and powered adjustment capability. The university, established in 1967, now boasts 140,000 students. clEAN brEAK Investment in clean energy hit record levels in 2010, climbing 30 per cent to $243 billion according to the latest analysis of global renewable energy markets by Ernst & young. However, there is concern that government spending cuts around the world could restrict continued expansion of the industry. China remains the clear global leader in terms of renewable energy with its wind capacity increasing by 64 per cent in 2010. 013
  10. 10. spectrumPowEr lIstLubna olayan, the CEo of riyadh-basedolayan Financing Company, is thesecond most powerful Arab woman inthe world according to CEo Middle Eastmagazine. olayan Financing was launchedby her father in 1947 and has grownto become one of the nation’s mostsuccessful conglomerates. olayan, whoin 2004 spoke at the WEF in davos,Switzerland is also on the board of theBeirut-based Arab Thought Foundation. top of the crops Regions where water quantity and quality are limited, such as Saudi Arabia and the Middle East, could benefit by growing crops engineered for stress tolerance, which would rEsEArchErs at King Abdullah resistance of current crop varieties. Dr Magdy address the problem of the nutritional needs University of Science and Technology Mahfouz and his research team have been of a growing population and pave the way for (KAUST) have developed technology that looking at a new way of genetically engineering surplus crops to be exported to GM-restrictive could improve the quality, yield and disease plants to tolerate aggressive environments. markets like Japan. the place to BelUPUs brEAKthroUgh vANcoUvEr has emerged as the mostThe US Food and drug Administration liveable city in the world for the fifth successivehas approved the first new treatment for year, under an annual index compiled by thelupus in more than 50 years. Economist Intelligence Unit. Benlysta is an injectable drug A combination of stability, healthcare,developed over 15 years by US biotech culture and environment, education and PHoTo CoUrTESy oF ToUrISM vANCoUvErHuman Genome Sciences. infrastructure helped the Canadian west coast It is estimated that this chronic and city emerge with a score of 98 per cent. Twooften disabling autoimmune disease other Canadian cities were in the top 10, withaffects more than 1.5 million Americans, Toronto listed in fourth place and Calgary fifth.90 per cent of whom are women. Melbourne leapfrogged the Austrian capital ofSymptoms include fever, exhaustion, Vienna into second place.fatigue, joint pains and skin rashes, and The leading US city was Pittsburgh, in 29ththere is no known cure for the disease. position, while New York stayed at 56th.014
  11. 11. INSPIRING OPPORTUNITIESAt Medsecurities, we are geared towards the wealth preservation of our customers.Our drive to perform stimulates a consistent response to the changing marketenvironment by delivering optimal investment solutions to our clients. With visionand thoroughness, our investment products and services offer innovation andflexibility to meet every
  12. 12. art + culture right to the art of it TErMINAL, THE GroUNdBrEAKING ExHIBITIoN By EdGE oF ArABIA, IS HELPING To PUT SAUdI ArABIAN ArTISTS oN THE MAP ANd SHoWING oFF THE CoUNTry’S FLoUrISHING CULTUrAL CrEdENTIALS. wrIttEN bY sAMIA QAIYUM If thoughts about the Kingdom of Saudi Kingdom, ranging from the mountains international cultural relationships, and addressed concepts of travel, Arabia only evoke images of vast deserts, of Aseer to the backstreets of Jeddah. stimulate interest and investment in bureaucracy, privacy and identity great wealth and limitless reserves of It all started back in 2003, when Saudi art. through the eyes of eight leading Saudi crude oil you should think again. British artist Steven Stapleton embarked Following successful exhibitions contemporary artists. The artworks, all An unexpected side of Saudi Arabia on a bumpy bus ride across Yemen’s in Venice, Riyadh, Berlin and most commissioned for this show, ranged has been revealed through the efforts of border with Saudi Arabia. His journey recently Istanbul, Edge of Arabia kicked from photography and sculpture to Edge of Arabia, a grassroots initiative introduced him to young artists at off 2011 with its first major exhibition performance, video and installation. that allows global audiences to better the Al-Miftaha Arts Village in Abha in the Gulf from March 14-April 15 The issue of travelling for people engage with the country’s relatively and ultimately welcomed an isolated at the Dubai International Finance from the Middle East, especiallyScreened unknown art culture. The non-profit arts community into mainstream Centre. Saudi, has changed drastically post2011 organisation brings together a new conversation. Launched in London in Entitled TERMINAL, the highly 9/11. Having said that, more Saudismaha malluh generation of artists from all over the 2008, Edge of Arabia aims to enhance conceptual and experiential exhibition are now travelling than ever before, 017
  13. 13. art + cultureabsorbing new ideas and challengingtheir own ideologies in the process.Both dynamics were reflected in theartworks; and the results were aseducational as they were inspiring, asunpredictable as they were beautiful. a tale of Upon arrival at the exhibition,a “passport” was provided to takeone through the airport setting that 1candidly mirrored the discomforts oftravelling in today’s world. Viewers two citieswere guided from check-in throughto security and immigration, before Taking viewers on a journey of explorationallowing them a moment to pause and illumination between Makkah andand reflect in the first class lounge. venice will be the Saudi pavilion at the 54thContemporary art in Saudi Arabia may venice nascent, but TERMINAL proved Entitled The Black arch, the exhibition willto be surprisingly vibrant, critical and showcase work by Shadia and raja Alem,innovative. two artists who offer two different visions of 3 Curator Bashar Al Shroogi tradition, memory and contemporary issuescommented: “Edge of Arabia has – one as a novelist and the other as a visualcome a long way in terms of the artist. They were chosen after their proposalsdevelopment of the exhibition as were considered to be the most appropriatea whole, as well as the individual for the biennial’s theme, which this year isgrowth of artistic expression of the 2 “Illumination”.artists themselves. TERMINAL pushes The sisters grew up in Makkah andcuratorial boundaries in dialoguing Art Beijing studied classical literature, but it is theirwith audiences via an experiential April 29 – May 2 everyday experiences in the city (thatinstallation. It also marks a maturity China National Agriculture Exhibition annually hosts millions of people from allin the relationship between artists and Centre, Beijing, China over the world) that dominates their work at 4curators working within very tightly the pavilion. Saudi traditions and the Muslimdefined parameters. It is fantastic to see CONTACT Photography Festival Art HK pilgrimage form the exhibition’s backdrop.the artists of Saudi Arabia pioneering May 1- 31 May 26-29 “I grew up aware of the physicalthis curatorial relationship for the first Multiple venues, Toronto, ON Canada Hong Kong Convention and Exhibition presence of black all around – the blacktime in the Gulf.” Centre, Hong Kong silhouettes of Saudi women, the black cloth The Edge of Arabia world tour is Alexander McQueen: Savage Beauty of the Kaaba and the Black Stone,” rajaglobally sponsored by ALJ Community May 4 - July 31 Tim Burton explains.Initiatives and undertaken in Metropolitan Museum of Art, New May 29 – October 31 In turn, the colour becomes the mainpartnership with the Saudi Arabian York, US Los Angeles County Museum of Art, theme of the exhibition itself and also worksGeneral Investment Authority Los Angeles, US to contrast the other part of the work, a(SAGIA). Art Amsterdam mirror image reflecting the present. Black May 11- 15 54th International Art Exhibition – also represents the rich life the sisters leadArt AgENDA Amsterdam RAI, Parkhal (hal 8), Venice Biennale in Makkah; the past full of people, mostlyMiró Amsterdam, Holland June 4 – November 27 pilgrims, stories told by grandmothers andApril 14 – September 11 Multiple venues, Venice, Italy the rich traditions of Islam’s holiest city.Tate Modern, London, England SP-Arte This is Saudi Arabia’s debut at the venice May 12 – 15 Photoespana Biennale. Its mere presence is important on 1. insideRembrandt and the Face of Jesus Pavilhão Ciccillo Matarazzo, São Paulo, June 9 – July 25 many levels, but it is vital for Saudi artists, TERMINALApril 21 – July 18 Brazil Paseo de Castellana, Madrid, Spain who have gained considerable confidence 2. curatorLouvre, Paris, France in the wake of the rise of the contemporary bashar al Art Melbourne Picasso: Masterpieces from the Musée Khaleej art market. ShroogiArt Brussels May 19 – 22 June 11 – October 9 The 54th International art Exhibition will run 3. Brainwash,April 28 – May 1 Royal Exhibition Building, Melbourne, National Picasso, Paris De Young from June 4 to november 27. 2011Brussels Expo, Halls 1 & 3, Brussels, Australia Museum, San Francisco, US Official partners for the saudi arabian hala aliBelgium pavilion include The Ministry of Culture and 4. Concrete arteBA Art Basel Information of the Kingdom of saudi arabia, Block IVArt Chicago May 19 to 23 June 15-19 the saudi arabian General Investment 2010April 29 – May 2 La Rural, Pabellones Azul y Verde, Messe Basel, Halls 1 & 2, Basel, authority (saGIa), saudi aramco, and the abdulnasserThe Merchandise Mart, Chicago, US Buenos Aires, Argentina Switzerland saudi research and Marketing Group. gharem018
  14. 14. art + culturegoing once,going twiceEdge of Arabia continues itscommitment to reinvest in the futureof arts and culture in Saudi Arabia byauctioning six works of contemporaryArab, Iranian and Turkish art on April19 in Dubai. Held in conjunction withthe region’s leading art auctioneer,Christie’s Dubai, at the JumeirahEmirates Towers Hotel, the sale is afundraiser to enable the expansion ofEdge of Arabia’s education programmeand art workshops in Saudi schools anduniversities. The auction reflects the surge ofinterest in the region’s arts duringthe past few years. Local art showsare on the rise, more Saudi artists areparticipating in overseas exhibitionsand more educational institutes arenow offering arts degrees. This groupof iconic works feature highlights fromprevious international exhibitions andit is estimated it will raise in the regionof $150,000:1. The highlight of the sale is a woodand copper dome symbolising theDome of the Rock in Jerusalem byAbdulnasser Gharem, a pioneer ofconceptual art in Saudi Arabia andco-founder of Edge of Arabia. EntitledMessage/Messenger and created in2010, it hides beneath its vast diametera small dove, the symbol of peace.Estimated at $70,000-$100,000.2. Edge of Arabia co-founder AhmedMater lives in southern Saudi Arabiaand is much celebrated for his X-RayIllumination series. The work offeredfor sale, Evolution of Man, is a series offive light boxes showing a petrol pumpin x-ray form slowly evolving into thehead and torso of a man pointing thepump nozzle and then a gun to his 4. Manal Al Dowayan, a leadinghead. Estimated at $22,000-$28,000. Saudi lens-based artist known for her depiction of Saudi women’s issues3. Maharem, a play on the Arabic word through art, is offering the Time 5. Maha Malluh is a photographerused to describe tissues and your close Seduces and Time Betrays triptych. This based in Riyadh. Since recently, she has 6. A Lambda print mounted onfamily, is by Ayman Yossri. In this monumental piece is from her recent begun to work with photograms – one aluminium by Sami Al-Turki entitledwork, the Jeddah-based artist has taken series, which depicts an imagined of the oldest forms of photography Marhabba from the series Washaeg. Ita group of tissue boxes, decorated them conversation between urban inhabitants using photographic paper exposed depicts two figures in the desert beforewith posters advertising classic Arabic and their cityscape, confronting the to light. Unveiled is a large lightbox an expansive sky pierced with sunlight,films from the 1940s or 1950s and complex issues of uncertainty, conflict containing a group of kitchen utensils and became iconic as the marketingstacked them beside and on top of one and constant flux in the relationship. animated with smiling faces. Estimated image for Edge of Arabia Dubai.another. Estimated at $20,000-$25,000. Estimated at $15,000-$20,000. at $5,000-$7,000. Estimated at $5,000-$7,000. 019
  16. 16. World eventThe Saudi Arabian GeneralInvestment Authority(SAGIA) was pleased at theenormous success of theworld’s premier conferenceabout competitiveness:the Fifth Annual GlobalCompetitiveness Forum(GCF), which was heldon January 22-25 inRiyadh, Saudi Arabia.cElEbrAtINg its fifth anniversary, the conference, this year’s themewas Innovation as a Means to Competitiveness, built upon last year’sconference discussion that focused on balancing economic growth andsustainability through competitiveness. The GCF theme was particularly relevant as Saudi Arabia continuesits unprecedented economic growth and continues to build upon thelast five years of social and political reforms. For the past four years,participants at the GCF discussed innovation as a means of developingcompetitiveness in order to build sustainability, drive economic growthand promote responsible development. This year’s GCF was the firstpaperless forum of its kind as all participants had iPads and paper wasbanned. His Excellency Amr Al-Dabbagh, Governor and Chairman of theBoard, Saudi Arabian General Investment Authority, explained theimportance of the conference for Saudi Arabia and the world. “While theGCF is global in scope, it has special relevance for us here in Saudi Arabia.In defining the country’s development strategy, the Supreme EconomicCouncil through the Saudi Arabian General Investment Authority,has committed to achieving world-class economic competitivenessas the platform for enhanced prosperity.” But he also emphasises thatthis prosperity should not come at any price. “To deliver sustainableprosperity, capitalism must be attentive to social, environmental, politicaland financial systems, with which it is intertwined. This imperative isreinforced daily by the pressure placed on the foundations of the world’seconomic well-being. Achieving sustainable competitiveness has neverbeen a more pressing challenge, neither for Saudi Arabia nor for otherforward-looking nations.” According to Citibank’s forecast, Saudi Arabia is set to be the MiddleEast’s richest economy in terms of GDP per capita by 2050. Citibankalso reported that Saudis will have an average wealth of $98,311 by 2050,nearly four times the current rate of $24,200 gross domestic product(GDP) per capita, according to the CIA World Factbook. Saudi Arabiatops the rankings for the Middle East and will be sixth overall on theglobal list by 2050, the forecast showed. In total, the Gulf is estimated tocontribute four per cent of global GDP by 2030 and by five percent by 2050. The GCF launched in 2006 in Riyadh under the patronage of HM King 021
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  18. 18. World event 7 8 9 101. Sagia governor amr al Dabbagh Abdullah bin Abdulaziz, the Custodian of the Two Holy Mosques. It Walt Disney International, agreed saying: “The ecosystem should lay theand former uS president bill clinton started as a gathering of Information, Communication and Technology groundwork for innovation, then management should allow innovatorsat the SFg gala dinner 2. paul (ICT) experts, including Bill Gates, as a vehicle to discuss how these free reign to come up with ideas and be supportive even if they fail.”hawken, environmental activist and technologies enable and encourage competitiveness. Since the success of Former US President Bill Clinton gave one of the most talked-aboutauthor 3. Former uK prime minister its launch, the GCF has been the only event of its kind, functioning as an keynote speeches on the third day of the conference. “In an interdependenttony blair 4. adel m. Fakeih, mayor annual meeting of global business leaders, international political leaders world, innovation has to be built into the model and structure of operations,”of Jeddah 5. chrystia Freeland, and selected intellectuals and journalists to create a dialogue with respect he said. Clinton spoke about innovation and competitiveness around theglobal editor-at-large, reuters to the positive impact organisational and national competitiveness can globe and how it all relates to Saudi Arabia. Often the best innovation isn’t6. ulf henriksson, chief executive and have on local, regional and global economic and social development. dramatic but rather just “doing what we already do better”, he continued.director, apv uK limited Its vision and mission continue to be the same: an annual programme “The iPad is an incredible innovation, but only 15 per cent of the world’s7. his excellency Dr. muhammad of activities attended by global business leaders, international political population has the capabilities to use it.”Sulaiman al-Jasser, governor, Saudi leaders and selected intellectuals who share a common interest in At this year’s GCF, the spotlight was turned on five groundbreakingarabian monetary agency (Sama) competitiveness. The forum is dedicated to fostering awareness initiatives. The first initiative, The Saudi Fast Growth Awards (SFG),8. helmut Schuehsler, managing and enthusiasm around the issue of competitiveness, evaluating the an annual ranking of the fastest-growing companies in Saudi Arabia,partner, tvm capital 9. James S. applicability of competitiveness theory and practice as a tool for launched by SAGIA, awards and highlights Saudi companies that areturley, chairman and ceo, ernst & generating real solutions to contemporary global challenges. creating jobs and spurring innovation. The top three winners for 2010 wereyoung 10. andy bird, chairman, the First Gulf Company, Dnata Travel and Waseel ASP Ltd, respectively.Walt Disney international thIs YEAr’s first conference panel, Innovation as a Means of The second initiative, The Saudi Responsible Competitiveness Index Competitiveness, started by delving directly into the theme of innovation, (RCI) analyses how Saudi companies are building competitive advantage asserting that the future will reward those countries whose competitiveness by managing their social and environmental impacts. Led by the King drives them to create and think ahead. “Innovation is the best way Khalid Foundation and SAGIA, it is supported by the international think- to compete for companies as well as countries,” said panelist David tank AccountAbility. This year’s winners of the King Khalid Responsible Drummond, Google’s senior vice-president of corporate development. Competitiveness Award were Saudi Basic Industrial Company, SABIC During the course of the discussion, four key factors that foster (first), National Commercial Bank (second), International Medical innovation were established: an ecosystem that fosters change, a culture Centre and Dr Fakeeh Hospital (sharing third place). of tolerance towards failure, a supportive regulatory environment and The third initiative, The Most Competitive Youth (MCY), is a strategic availability of risk capital. “These add up to creating the environment that initiative to engage Saudi youth in applying 21st-century skillsets induces innovation,” said Jim Albaugh, president and CEO of Boeing. to improving their communities; inspiring creativity, promoting John Rose, CEO of Rolls Royce, raised in important point, reminding innovation, and bringing Saudi Arabia’s economy to the forefront of the panel that “not all innovation is good innovation” and that often competitiveness. Rayan Al-Dafas, a 15-year-old Saudi student, bagged innovations aren’t commercially viable. Albaugh supported Rose’s top honours this year. The fourth initiative, The Top 100 FDI initiative, observation, citing his experience with engineers at Boeing. He discussed was introduced by SAGIA to recognise top FDI companies, and highlight how each innovation an engineer makes should be respected so as not to their contribution to the Kingdom, the largest recipient of FDI in the discourage the engineer to innovate in the future. Andy Bird, chairman of region and the eighth largest in the world. The fifth initiative, Saudi 023
  19. 19. World event 1 2 3Oxford Leadership, was launched in 2009 as a joint initiative by SAGIA, countries is nearing its level in the OECD industrialised countries and 1. abe m. Sher, founder, chairmanNorth Development Program, and Oxford University’s Saïd Business will surpass it by 2013.” and ceo of aqua Sciences, inc.School. The Saudi Oxford Leaders Event at GCF 2011 highlighted the The future of innovation in the energy field was also a hot topic at the 2. Steven mills, senior vice president,objectives and strategy behind the creation of SOAMLP, the connection conference. The panel The Shift in the Energy Landscape addressed how ibm 3. canadian senator, marie-between leadership development and competitiveness, and showcased diverse technologies to develop clean energy are on the rise. Joe Stanislaw paule poulinthe alumni’s community-based projects for improving Saudi society. of the JA Stanislaw Group discussed how the future is “clean” and Sandra In celebration of Saudi Arabia’s improving to 11th place in the Ease of Wu of Koksai Kogyo Group urged Saudi Arabia to utilise advancedDoing Business Ranking and eighth in global inflows of FDI, the GCF Geographic Information Systems (GIS) in building solar power plants.panel on 10x10: A Case Study highlighted how accomplishments over the She said that satellite technologies will be crucial for selecting land andpast five years have laid an excellent foundation for Saudi Arabia’s future positioning solar panels, and that, using GIS, Saudi Arabia would be ableand it’s global presence. to maximise the productivity of its plants. President Bill Clinton said, “The 10x10 programme represents Saudi Art was also the topic of spirited discussions at the GCF. PaolaArabia’s commitment to thinking in terms of the future — not just Antonelli, senior curator of the Department of Architecture and Designthinking of the present.” at the Museum of Modern Art; Jake Eberts, the award-winning movie Amr Al-Dabbagh praised the success of 10x10, but he also said “this producer of A Journey to Mecca; Jitesh Gadhia, managing director ofis not the end of our competitiveness journey; the future will be even The Blackstone Group; Mona Khazindar, Curator of the Museum of themore interesting. The Economic Cities will become new benchmarks Institut du Monde Arabe; and Venetia Porter, Curator of Islamic andrecognising Saudi Arabia’s second phase competitiveness.” Contemporary Middle East at The British Museum, each presented their In his keynote speech, His Excellency Adel M Fakeih, the current Minister views during the panel, Creative Capital.of Labour, addressed labour force reform in Saudi Arabia. According to HE Panelists discussed how art plays an important role in creating aFakeih, five million jobs need to be created in 20 years to keep up pace with competitive atmosphere. Khazindar showed slides of public art projectswork force growth. He reassured the audience that the Saudi Government and Porter gave an overview of important contemporary Saudi artists,is working to fix this problem and he made three main recommendations: including Manal Al-Dowayan, who is supported by the Edge of Arabia1) focus on job intervention policies that are “Saudisable” (industries where platform for promoting Saudi art. Eberts reflected on how businessSaudis want to work), 2) create economic activities and opportunities that philanthropy can turn creative ideas into powerful cultural forces,deliver high salary jobs and 3) increase nationals’ participation in the private emphasising how “we are able to develop a sense of identity becausesector by creating an equal playing field and restoring fair competition of social interactions”. Gadhia explained how innovation and artisticbetween nationals and expats. Other items that HE Fakeih put on the reform creativity are inseparable and offered suggestions for how the arts canagenda were increasing the cost of foreign workers, giving youth incentives create growth in private-sector work in the private sector, making the labor market more transparent and Other speakers included Janine Benyus, Rahul Singh, Mohammedcreating a social welfare system. Rezwan, Jack Simm. Klaus Kleinfeld, Marco Tronchett-Provera. Jean Pascale-Tricoire, Ulf Henriksson, James Wolfensohn, Professor MichaelIN hIs keynote speech on the global energy outlook 2011, His Porter, Linda Rottenberg, Paul Hawken, Jean Chrétien, Andy Meyers, AmyExcellency Ali bin Ibrahim Al Naimi, Saudi Minister of Petroleum and Zhou, James Carpenter, Atul Punj and John C. Warner, among others.Minerals said, “The world has clearly passed the global economic and “The insights that emerged during the conference were a testament tofinancial crisis and deep recession it experienced in 2008-2009 and the growth and global scale of the GCF 2011,” says HE Amr Dabbagh.entered as of last year a stage of growth which is expected to continue this Next year’s theme will build upon these insights. “The theme will beyear.” He added: “This year might mark an important turning point in “Competitive Entrepreneurship.” This is not the end of our competitivenessthis direction, as oil demand in the emerging economies and developing journey; the future will be even more interesting.”024
  20. 20. industry026
  21. 21. ceo speaKs to tHinKcaptital sm W tH a consc ence MAGATTE WAdE-MArCHANd EArNS A LIvING By wrIttEN bY lIsA vINcENtI INTrodUCING AMErICANS To SoME oF HEr HoMELANd’S NATIvE SECrETS, yET SHE doES So IN A MANNEr ILLUSTrATIvE oF A NEW BrEEd oF CAPITALISTS WHo BELIEvE THEIr joBS Go WELL BEyoNd jUST TUrNING A ProFIT. MAgAttE Wade-Marchand, raised in Senegal, educated in Germany and France, and now living in the United States, is getting ready to launch her latest venture, a high-end cosmetics label At just 35, Wade-Marchand already has one flourishing company that takes traditional beauty recipes from her homeland, and brings under her belt. Founded in 2004, Adina World Beverages introduced an them into 21st century. Wade-Marchand has high-expectations for original Senegalese drink to US consumers, who have become increasing Tiossano Tribe, as her collection is dubbed. thirsty for esoteric, organic beverages. The market penetration of Adina Wade-Marchand is part of a growing number of entrepreneurs who in less than 10 years is impressive: the drink is now distributed through believe that profits do not have to be made at the expense of others most Whole Food supermarkets (the owner of which counts himself and the environment, they understand that every participant, from among the ranks of conscientious capitalists and was among the first CEO to local workers, must reap the rewards of success. Consider to adopt this new business model) and was recently introduced to it a corporate culture with soul; conscientious capitalism is what mainstream grocery chains such as Safeway, Publix and Raley’s. these entrepreneurs, including Wade, ascribe to and they hope it will Yet while establishing Adina in the marketplace, Wade-Marchand become the next major chapter in economics. lost touch with one of her original goals of the company and she feels So when it comes to establishing her latest proposal, Wade-Marchand the founding of Tiossano is her way back. “Adina was founded after is banking on Tiossano to not only help Senegalese workers earn a visiting Senegal and discovering that the traditional hibiscus beverage comfortable living but also to provide them with the tools they need to that I had been raised with was being replaced by Coke and Fanta,” turn Senegal into a haven of entrepreneurship. “Conscious capitalism notes Wade-Marchand, who is now based in the US but makes several is capitalism that’s conscious of its deeper purpose,” she says. “My trips a year back to her homeland, where her family still lives. purpose has always been to transform Africa by providing jobs, by “I knew the only chance that our beverage had of being respected providing innovative education and, most importantly, by providing by Senegalese people would be if it became popular in the West. a new identity for what it means to be African that will change both When I created Adina, hibiscus growing was in steep decline, and by Africans and non-African perceptions.” partnering with (Agribusiness in Sustainable Natural African Plant 027
  22. 22. ceo speaKsto tHinK KEvIN MCNULTy 1 2Products) and the first lady of Senegal we were able to create a thriving What’s more the country exports slightly more than $2.1 billion (chieflyorganic hibiscus industry that now employs thousands of women. Since in fish, groundnuts, petroleum products, phosphates and cotton) while 3then many organisations have been inspired by our visionary approach.” importing more than double that amount in food and beverages, capital As Adina, which received a $30 million venture capital infusion, grew goods and fuels. The nation has been struggling for decades to create aninto a mainstream product, it began drifting away from its initial focus economy that can boost employment rates and income levels, yet change 1. magatte Wade with hibiscuson indigenous African recipes, prompting Wade-Marchand to leave the has come slow. women co-op growers in, although she remains the largest individual shareholder. Often relying on hand-outs of foreign aid for survival, Senegal – and 2. the new product tiossano from “The great irony is that while I have probably founded the most most other African nations, Wade-Marchand contends – would do far Wade.successful US consumer brand ever created by an African, the African better by fostering a spirit of entrepreneurship and enterprise instead. 3. a renewable energy power stationcomponent of the brand has steadily shrunk as the brand became more Furthermore, many non-government initiatives that attempt to create jobs in a remote village.successful,” she says. “Tiossano has been designed to ensure that will not in Senegal and Africa fail due to a lack of understanding by implementershappen again.” that to get a crop like hibiscus grown is just one small factor in the success of an agricultural project. It proves far more challenging to get crops tosENEgAl, wIth Its population of more than 12 million, sits market rather than having them rot in the field without a strong, saleableon the western most tip of Africa. One of the continent’s most stable concept, such as Adina, which serves as the buyer.democracies, Senegal, with its low, rolling plains rising to foothills in “After 40 years of socialism, there was much optimism in 2000 whenthe southeast, is nonetheless plagued by some of the same problems as President Wade was elected,” Wade-Marchand recalls. “Although he madeother African nations. Nearly half of the population is unemployed and some reforms which made it easier to start businesses in Senegal, in moreof those that do work, 77 per cent rely on agriculture to eke out a living, recent years reforms have gotten bogged down in politics and corruption.according to the Central Intelligence Agency’s World Factbook. Senegal is a beautiful country with hard-working, respectful, decent people.028
  23. 23. 1 2 3 4 “We have never had a coup nor civil war, our AIDS rate is similar California to adapt those beauty potions to American product1. the Senegal countryside. to that of the US, we have none of the usual problems associated with standards. In fact, in the initial viability phase, Tiossano will be2. a salesgirl in Dakar. Africa. If we can create a successful manufacturing sector we can produced, marketed and sold exclusively in the US.3. a hotel in the Saly portudal area become the first African success story. In addition to the jobs created “Once we have adequate sales volume to justify moving productionon the petite cote. directly by my company, I wanted to serve as a model to the Senegalese to Senegal we will do so,” Wade-Marchand says, noting that she expects4. a coastal town in Senegal. of how it is possible to create a world-class company. it will take about 18 months to build up enough capital to set up a “I know many Indian entrepreneurs who said that when [IT and production facility in Senegal. “Thus our first impact [on Senegal] will consulting company] Infosys became a global brand it inspired them be to create jobs. In addition, we are devoting 10 per cent of product to create globally competitive companies as well. Today we all consider revenues to the creation of innovative education in Senegal, which will Indians as entrepreneurial, but that was not the case 30 years ago… I empower Senegalese young people to become creators, innovators and want to do the same for Senegal.” entrepreneurs. “In order for Africans to obtain the respect and dignity they deserve, wIth thE fIrst Tiossano beauty products coming to market this it is important that Africans not only escape poverty, but that they also spring, Wade-Marchand has big plans for her current project. Based become competitive globally. By means of the example of my company, just outside of New York, she apprenticed with a tradipractitioner in by the experience of working in my company and by means of the Senegal to learn all she could about traditional recipes and techniques. schools we will create, we will provide a new generation of Senegalese She then collaborated with a professional green chemistry lab in with the skills and inspiration to become globally competitive.” 029
  25. 25. mining The world watched anxiously as 33 trapped Chilean miners were dramatically rescued after an accident last October. Unfortunately, this was but one of a deluge of mining accidents that occurred in 2010, and tragedies continue to occur. As of early March this year there have been 11 additional fatal mining accidents in Chile alone. CoPyrIGHT © MArLI MILLEr, UNIvErSITy oF orEGoN 2 3 4 MAJor AccIDENts in coal mining have made the front pages of Sakin Tuncer. Of particular concern is the damage to the olive trees in the world’s newspapers because of the tragic numbers involved and the the area. heroic rescue attempts. The reality is that the mining of coal and other “Olive trees have been [benefiting] humankind for the past 6,000 years, minerals frequently takes its toll, not just in terms of lives lost, but also whereas the average activity of a mine is around 10 years,” says Mustafa on the environment. Tan, head of Turkey’s National Olive and Olive Oil Council. “And at the Minerals harvested through mining are vital for almost all human end of that 10 years, the mines leave behind environmental damage that activities today from agriculture to manufacturing to the technology takes hundreds of years to heal.” required for alternate energy sources, and the demand for them continues to escalate. In an effort to extract these valuable natural resources from the AlthoUgh mining has been conducted for centuries, prior to earth, the mining industry has gained a reputation for the exploitation of recent years there has been little worry about the safety of people or both its workers and the environment. So is safe, clean mining possible? the environment. Today, these are growing concerns. International With the price of gold skyrocketing, its mining is taking on new organisations such as the International Council on Mining and Metals significance today. Unlike the popular Wild West image of a lone 49er (ICMM), an organisation comprised of 18 mining and metals companies panning for chunks of gold in a California stream, most of the supply that plus 30 national and regional mining associations and global commodity is excavated today is in the form of tiny particles mixed with mud and dirt. associations, have been formed by those involved in this sector to The traditional process uses a cyanide solution to extract the particles. voluntarily address core sustainability issues including the health and Contamination affecting the surrounding ecosystems occurs if water safety of workers and the environment. The list of yearly conferences utilised in this process leaks into the environment, causing substantial devoted to these issues is continuously growing as a testament to the damage to the local ecosystems, often destroying the livelihood of the current anxiety. inhabitants while exposing them to a variety of serious health conditions. The ICMM in a recent survey found that environmental concerns1. anglogold mining operations in In 2000, a pipe carrying cyanide solution burst in Romania, sending (40 per cent) followed by social concerns (28 per cent) were the topSouth africa the rancid chemicals down to the rivers and villages below the mining sustainable development issues for the mining and metals industry.2. open pit mine with half full of site. Eleven years later, people living in the area continue to suffer, with In the late 1930s, deaths from all mining activity in the US averagedwater in north america drinking water cut off and nearly all the fish in the area killed.  over 1,500 annually, considerably more than the 71 fatalities in 2010.3. anglogold’s underground mining Residents in western Turkey recently protested about a gold mining Improved safety policies and enforcement of government regulationsoperations in brazil project in their area. “This process brings an end to vegetable and fruit have helped reduce these numbers. If regulations are strengthened4. a view of the plant at crixas mine farming and stock-breeding. The cyanide mixes with the atmosphere and throughout the world, and effectively and consistently enforced, moreSerra grande in brazil comes back to the soil in the rain,” says Bayramiç District Mayor İsmail fatalities can be prevented and the affects on the environment should be 031
  26. 26. miningless destructive moving forward. Many mining companies, especially thelarger, more heavily regulated ones, have developed official sustainabilitystatements voicing their concern for safety and the environment, a smallbut vital first step. According to Martin Jones, director of the Banro Foundation, whichis involved in the Democratic Republic of the Congo: “With reputablemining companies that (destruction) almost never happens. Any minebeing built today has to be built to global standards. In the Congo, theMining Code of 2003 is quite advanced. It is based on the best miningpractices in Africa and was put together with help from the World Bank.If you do [build according to World Standards] there shouldn’t be anyenvironmental issues.” The increase in awareness in the past few years has also inspiredresponsible companies to take their own initiative to prevent thesedisasters. Among advances being made are those by European Nichol,which has developed heap leach technology that, in addition to beingeffective and cost-effective in extracting the mineral that is used inmaking stainless steel, is a method that considerably reduces carbondioxide emissions when compared with conventional processes. Thesulphuric acid used in the process is recycled to generate steam, which inturn generates more electricity than the project needs. The excess is thensupplied to the local energy grid, thus reducing the need for fossil fuels. Another reportedly more environmentally friendly technology forextracting minerals is the bioleaching utilised by BacTech Environmental,which uses naturally occurring bacteria rather than chemicals such ascyanide and is purported to be a safer method of neutralising arsenic andother toxins in mine site debris or “tailings”.wAtEr MANAgEMENt is another vital aspect of the mining 1process and involves recycling, conservation, quality-testing and stormwater management. Xstrata, which has 40 operations worldwide, with recycled. For one operation in Chile, treated wastewater accounts for 70 1. a view of the plant at crixas mineclose to half in arid regions, is working to lessen their demands on water per cent of the overall water consumed. Serra grande in brazil sources through conservation Additional pressure to clean up the environment is coming from other 2. martin Jones, chairman of the and the increased use sectors of the economy as well. Zale Corporation and 53 other jewellery banro Foundation of recycled water. companies with annual sales of more than $5.75 billion are boycotting Approximately 60 gold from the open-pit Pebble Mine in southwest Alaska, United States.  per cent of the water Open pit mining is a surface mining practice that leaves a huge pit in the used in 2009, the last earth. “Such a large number of jewellers have never taken a stance on a year statistics are particular place before,” Earthworks spokeswoman Bonnie Gestring says. available for, was Some lenders are also taking a stand on mining practices. The loan getting the environment and to promote workplace “We are dealing with a population safety. that really wants to see progress. They Martin jones, chairman of the Banro are perfectly aware the Congo has been it right Foundation, spoke to thINK. “When we first went to the Congo in the autumn of 2004, the first thing left behind. They know they have limited opportunities and that the rest of the world has a higher standard of living, and more bANro is a Canada-based gold we did was to meet with the tribal and opportunities in life. The know they have a exploration and development company that administrative leadership in the regions limited skills base.” is constructing a “phase one” gold mine where we were going to be active, as well in the democratic republic of the Congo, as the government and church officials, The local leaders identified three areas the first of a number of projects there. The and explained to them what our goals they specifically wanted the Foundation to Banro Foundation was created to promote were going to be. We asked them how we address: the social and economic development of could best work with them to make the most 1. Education the local communities, to create jobs and effective contributions to these communities,” 2. Healthcare training for Congolese citizens, to protect he said. 3. Social infrastructure 2032