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![SAMA CEO
SPEAKS TO THINK
THINKING
ABOUT A
UNIFIED
CURRENCY
DR MUHAMMAD SULAIMAN AL-JASSER, GOVERNOR OF THE SAUDI ARABIAN MONETARY
XTHE ADOPTION OF A COMMON CURRENCY, WITH THEX
AGENCY, SHARES HIS THOUGHTS ON THE TOPIC OF A UNIFIED CURRENCY XRESULTANT REDUCTION IN CURRENCY CONVERSION COSTSX
XAND ELIMINATION OF EXCHANGE RISKS, SHOULDX
WRITTEN BY DOROTHY WALDMAN
XPROMOTE INTRAREGIONAL INVESTMENTS.”X
HIS EXCELLENCY DR. MUHAMMED SULAIMAN AL-JASSER
THE recipient of the 2010 Achievement Award of the Arab
Bankers Association of North America, His Excellency Dr Muhammad
lowering of transaction costs and removal of exchange rate uncertainty
will contribute to raising intraregional trade.
Sulaiman Al-Jasser has been the Governor of the Saudi Arabian Monetary “ e adoption of a common currency, with the resultant reduction
Agency (SAMA) since February of 2009. He joined the International in currency conversion costs and elimination of exchange risks,
Monetary Fund (IMF) as Economic Adviser to the Executive Director for should promote intraregional investments. It will also be conducive to
Saudi Arabia in 1988, eventually becoming the Executive Director at the investment by foreigners in the region. Moreover, the introduction of a
IMF, a post he held until 1995. From 1995, until his current appointment, common currency will serve as a catalyst for stronger integration and
he served as Vice Governor of SAMA. deepening of nancial markets.
Dr Al-Jasser has also served as a member of the Saudi Arabian “It will foster the integration of money markets across the common
Negotiation Team on the accession of Saudi Arabia to the World Trade currency region and lead to a uniform short-term interest rate structure.
Organisation and was honored with the King Abdulaziz Medal of the e introduction of a common currency will also be associated with
First Order for his services to the Kingdom of Saudi Arabia. the pursuit of a common monetary policy and more disciplined scal
With a vast experience in the realm of international monetary policy, policies by the member countries.”
the current Chairman of the Gulf Cooperation Council (GCC) Monetary However, Dr Al-Jasser, who earned both his Master of Arts and PhD in
Council is eminently quali ed to discuss the topic of a single currency, economics from the University of California in 1981 and 1986, respectively,
which has been seriously and vigorously debated within the region during recognises that in spite of these profound bene ts, for a monetary union
recent years. ough the suggested goal of nalising an agreement that to be successful, certain safeguards must be implemented.
provides for a single currency to be used among the GCC states is highly “Fiscal discipline is crucial for the success of the monetary union.
unlikely at this point due to stalled negotiations, Dr Al-Jasser recognises Without it, large di erences in member countries’ scal stances can
many bene ts to such an economic agreement. create tensions, leading to policy disagreement and hindering other key
“ e adoption of a common currency will bring a number of economic macroeconomic convergence requirements for the smooth functioning
bene ts,” he states. “It will eliminate the currency conversion costs of the union, such as price and nancial stability,” he says.
involved in intraregional transactions and remove the disturbances “Member countries must, therefore, be subject to scal convergence
CORBIS
in relative prices arising from nominal exchange rate uctuations. e criteria [budget de cit/GDP and debt/GDP] and adequate budgetary
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![THINK
ROUNDTABLE
SINGLE MINDED
“THE PROBLEM WITH MONEY IS THE NATURE OF IT BEING
X X
X SOVEREIGN. BECAUSE IT IS SOVEREIGN, IT THEN REQUIRES YOU X
TO USE FX [FOREIGN EXCHANGE] AND TO MANAGE FX YOU
X X
THE GLOBAL ECONOMIC CRISIS HAS REOPENED THE DEBATE ON THE WORKABILITY HAVE TO MANAGE VOLATILITY, AND TO MANAGE VOLATILITY
X X
OF A COMMON CURRENCY AMONG A GROUP OF NATIONS.
WRITTEN BY DOROTHY WALDMAN
YOU HAVE TO USE SPECULATION. THE SINGLE, NUMBER ONE
X X
UNDERLYING REASON FOR THE GLOBAL ECONOMIC CRISIS WAS
X X
WHEN the earliest explorers began to discover new e major disadvantage is not economic, but rather political, because of
XNOT THE BANKERS BUT THE FAILING MONETARY SYSTEM. THIS X
peoples and products, and di erent ways of accomplishing trade,
rudimentary barter transactions between individuals to exchange goods
the inevitable loss of sovereignty in controlling certain aspects of monetary
and scal policy within a member country. e recent economic crisis,
X MONETARY SYSTEM IS NOT DESIGNED FOR GLOBAL ECONOMIES, X
and services became outmoded. It meant that new ways of doing business including Greece’s highly leveraged public debt estimated at 120 per IT IS DESIGNED FOR SOVEREIGN ECONOMIES.”
X X
had to be established to accommodate these new realities of expanded cent of GDP, illustrates how the policies of one country within such an
trade and commerce. economic union can a ect all the countries within the grouping, in spite
Almost from the very beginning, governments (whether headed by of safeguards initially put into place. A public debt of this magnitude is
the chief of a nomadic tribe or elected president or prime minister of a in violation of the Maastricht Treaty of 1992, which limits the amount of
world power) and economists (regardless of what they were called at the debt a member country can incur to 60 per cent of GDP.
time) have focused their e orts on the goal of making trade transactions e thesis of Nobel Prize-winning economist Robert Mundell, who is
more e cient, resulting in the creation of money, stock exchanges and sometimes referred to as the conceptual father of the euro, states that in
international arbitration. Fluctuations in values and exchange rates international nance, a government can have only two choices among
between the currencies of di erent nations has thus lead to a debate three options: (1) stable exchange rates, (2) international capital mobility
regarding the feasibility of the creation of a single, uni ed currency and (3) domestic economic policy autonomy (such as full employment,
among various groupings of countries. interest rate policies and counter-cyclical scal spending).
In the latter half of the 20th century, the possibility of creating a His vision requires sovereign states to give up domestic economic
common, uni ed currency was contemplated by the European Union policy autonomy in exchange for the bene ts of cross-border capital
(EU), the members of the North American Free Trade Agreement mobility and stable exchange rates. e political importance domestic
(NAFTA) and the Gulf Cooperation Council (GCC). However, only the economic policy plays within a country presents stumbling blocks for
euro, which was introduced on New Year’s Day 1999, has become a reality. nations negotiating an agreement regarding the establishment of a
e AMERO (the suggested NAFTA currency) has slipped into obscurity common currency.
and the establishment of such a currency is still under consideration
within the Gulf States, with the initial goal of 2010 inauguration date DISSENSION RESULTS when the goals of di erent countries come
extended, perhaps to 2013 or beyond. into con ict. For example, one country may use interest rates to fuel
ere are many advantages of having a uni ed currency according to its expansion and this may cause in ation in another, or if one country
Benita Ferrero-Waldner, former European Commissioner and member accumulates large debt from domestic policies. To eliminate such
of the board of wind turbine manufacturer Gamesa in Spain, who is a problems, member countries must agree in advance to forego a certain
passionate advocate of the common currency concept, even though she amount of self-determination and sovereignty of internal scal policy for
is well aware of the controversies surrounding it. the greater good.
“First of all, within the di erent countries you have one currency. You is presents the problem of the sovereignty of member nations. James
have transparency, you don’t have any more di erent exchange rates, you Fierro, the founding partner of Venture Resources, an organisation
don’t evaluate or devaluate with regards to another one. ere are many, involved in the identi cation, development and nancing of emerging
many bene ts,” she says. growth companies says: “ e problem with money is the nature of it
Among the recognised bene ts are signi cant savings in the cost being sovereign. Because it is sovereign, it then requires you to use FX
of transactions within the currency zone from not having to convert [foreign exchange] and to manage FX you have to manage volatility, and
currencies. is can lead to the development of wider markets for goods to manage volatility you have to use speculation. e single, number one
and services; the increased ease in attracting investment and improving underlying reason for the global economic crisis was not the bankers but
competitiveness on the world markets; improved opportunities for the failing monetary system. is monetary system is not designed for
planning and strategy formulation; and, until recently, the anticipation global economies, it is designed for sovereign economies.”
that economies as part of a massive market would not uctuate as Interestingly, he goes on to explain how this is bringing about a retro
dramatically as in the past from boom to bust, therefore adding stability. trend – the return to the barter system. “We found out that most of
“Di erent currencies add volatility to your investment outlook. You the biggest companies in the world are engaged in some form of non-
invest from your local currency into a di erent currency,” said Jens Yahya monetary trade. ey don’t usually call it barter; they refer to it as o set
Zimmermann, managing partner of New Silk Route Growth Captial, trade, counter trade, reciprocal trade or industrial participation trade,”
at the Global Arab Business Meeting (GAB). By not having the risk of Fierro says.
currency uctuations, investment decisions are based on anticipated “Why does GE sell a US$150 million power generating turbine to
return, not exchange rates. China and take payment in coal and frozen chicken? For me this is almost
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![HEALTH
NOT JUST A
FEMALE PROBLEM
Often wrongly considered a disease that just
afflicts older women, breast cancer does not
discriminate according to gender or age.
Although it is about 100 times less
THE FIGHT
common among men than women and
its incidence in relation to the population
has remained stable in the past 30
years, approximately 2,000 men will be
diagnosed with breast cancer this year in
AGAINST
the United States alone, about one per cent
of total cases, and close to 400 men will
die from it.
The prognosis for men has generally been
considered worse than that for women, but
BREAST CANCER
that is largely due to the fact men tend to get
a diagnosis at a later stage as they often do
not believe they can get it.
“Actually [breast cancer] is easier to find
in men,” says Dr Stanley Waintraub, of the
John Theurer Cancer Center in New Jersey.
“Men may ignore symptoms such as lumps,
pain in the breast or discharge from the
ACROSS THE WORLD, CASES OF BREAST CANCER ARE INCREASING AS MORE WOMEN ARE nipples.”
DIAGNOSED, BUT A RANGE OF INNOVATIVE PROGRAMMES ARE SHOWING THAT A POSITIVE Recent research published online in the
PROGNOSIS IS STILL POSSIBLE. Journal of Medical Genetics has revealed
that men, like women, who carry the BRCA2
genetic mutation, have a higher risk of
WRITTEN BY DOROTHY WALDMAN
contracting the disease – 7.1 per cent by
the age of 70 and 8.6 per cent by the age
of 80 – so these men should be particularly
IN 2010, over one million women will be
diagnosed with breast cancer and about half a million will die from the
cent in areas where adequate services are not available – in high income
countries fatality rates are less than half that.
vigilant about early detection.
Richard Roundtree, known for his role as a
maverick, macho private investigator in the
COST OF NEW CASES OF
disease. Once considered an a iction most likely to strike a uent white In emerging economies, breast cancer is a relatively new concern for BREAST CANCER BY COUNTRY film Shaft, thought doctors were questioning
women in industrialised areas of North America and Western Europe, both women and medical professionals. Currently, the average woman his masculinity when he was diagnosed in
breast cancer is on the rise throughout the world, representing one in 10 diagnosed in Kenya can only wait for her death; in South Africa only Total Cost (US$) 1993. “Every opportunity I get,” he says,
of all new cancers diagnosed and almost one in four cancers in women ve per cent of cancers are caught in the early stages when they are most Australia 377,837,261 “I am very vocal about the fact that breast
worldwide. curable; and Pune in India has only one comprehensive breast cancer Bangladesh 3,422,972 cancer is not gender specific.”
Today, nearly four million women are living with breast cancer and facility for the 3.5 million women it is supposed to serve, resulting in half China 176,821,281 Former Kiss drummer Peter Criss, known
many of these live in highly developed countries. However, by 2020, the of all the women going entirely without treatment. France 1,535,292,360 as Catman, was treated for the disease in
World Health Organisation anticipates a 50 per cent increase in cancer Mammography machines, the single most important tool in early Germany 2,089,246,140 2008 and has some sage advice for men
and 70 per cent of all new breast cancer cases worldwide will be in detection, are available in the Ukraine, but a shortage of lm requires Guatemala 2,421,188 who discover a lump in their breast. “Don’t
developing countries. that doctors choose between taking the recommended two-view image of India 48,796,462 sit around playing Mr. Tough Guy. Don’t
In countries with access to state-of-the-art diagnosis, survival rates are a patient’s breasts and taking a one-view image of twice as many women. Netherlands 404,546,601 say: ‘It’s going to go away.’ It might not and
beyond 80 per cent and closer to 90 per cent in some areas. In the United In Venezuela, some hospitals have the equipment for large biopsies, a Saudi Arabia 16,924,099 you might not see life anymore and how
States, where one out of eight women will be diagnosed with breast sophisticated procedure for early detection, but the cost of actually using United States 16,097,364,800 beautiful it is,” he says.
cancer during her lifetime, an estimated US$68.1 billion is spent each it presents a prohibitive challenge, with one hospital reporting that the UAE 4,735,500 This is a message that the John W Nick
year to diagnose and treat the disease. procedure has not been preformed in three years. Unsurprisingly, more Foundation, which provides support and
e situation is di erent in much of the rest of the world. e number than 70 per cent of all cancer deaths occur in countries where resources information on male breast cancer, hopes
of patients diagnosed with curable breast cancer drops to about 50 per for diagnoses and treatment are limited or non-existent. men take heed of.
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![PLANET ENVIRONMENT
03
02
01 Local woman at Mekong river near South
Vietnam 02 In the last 10 years we have lost
nearly half of all our wild tigers 03 Icebergs in
Northeast Greenland 04 World Wildlife Fund
wetlands conservation programs help individuals
01 earn a living 04
01
to reverse this course, enlisting the aid of businesses and governments Today, it is not merely society’s impact on the environment making overdrawing our natural assets,” argues Glenn Prickett, senior vice- economic metrics with indicators of well-being, including subjective
around the world. headlines, but also the e ect of a depleted planet on well-being and
“Just as a few lonely president at Conservation International, a Washington DC-based measures of life satisfaction, which have become quite sophisticated (HPI
“ e next few years will be a critical period for the future of our planet,” health. Lifestyles are changing and consumers in more developed regions economists warned us organisation that works with governments and companies (including uses data from Gallup, World Values Survey, and Ecological Footprint).
says Jim Leape, director general of WWF International. “We have huge are returning to the basics, where sustainable, environmentally friendly we were living beyond Starbucks and Wal-Mart) to make conservation part of their business. e index assesses social and economic well-being in the context of
challenges ahead of us, but I’m con dent that we can rise to them.” products, be they grown at local farms or purchased from high-end “Mother Nature doesn’t do bailouts.” resources used, looking at the degree of human happiness generated per
In fact, the WWF, a non-governmental agency founded in 1961, has luxury goods makers, are becoming mainstream requirements. No longer
our nancial means e global nancial crisis of 2008 has morphed into something far quantity of environment consumed.
named 2010 the International Year of Biodiversity. “[It is] a year when does being an environmentalist mark one as a member of a fringe group. and overdrawing larger than merely serving as a marker of a major worldwide recession. “HPI is striving to measure a better future,” Marks says, adding that one
the world will set new targets to protect and conserve our environment As a larger slice of the consuming public has begun to insist on a our nancial assets, It has become a symbol of what is wrong with our current economic appeal of the GDP, has been that it presents a simple message: up is good;
for people and nature,” according to Chief Emeka Anyaoku, its former proactive approach to sustainability with regards to the products and model – a model where success is measured on an unsustainable down is bad. “HPI is trying to mirror that simplicity, using one number
president. ose goals include reducing the world’s global footprint to service they purchase, forward-thinking corporations have adopted new
scientists are warning us model of growth based on production. Furthermore, it has witnessed a as a headline indicator.”
pre-2000 levels by 2020; with an overall target of staying within earth’s strategies in response. More and more in the business community are that we’re living beyond rethinking among some economic analysts and players who now ponder As a steward of sustainability and environmental conservation,
capacity by 2050. No easy feat considering that the Swiss-based agency beginning to view sustainability and environmental conservation not as our ecological means the fundamental nature of what it means to be successful not only as a the WWF has undertaken an massive campaign to further it’s agenda
saw revenues drop by $4m to $598m last year. a cost to the bottom line but as a way to drive future pro tability and business or nation but as society as a whole. Using strict measures such of conserving biodiversity and reducing society’s impact on the
ensure survival. However, time is running out – and quickly.
and overdrawing our as gross domestic product, sales or even new store openings is antiquated environment. “Businesses realize that their supply chain can be at risk if
NONETHELESS, it continues to devote more expenditure on “We have only this generation to get sustainability and the environment natural assets.” to these forward-thinkers. ey say that these markers fail to take some they are using natural resources that are depleting fast, and particularly
conservation e orts. And, perhaps more importantly, is that corporate and right,” Leape notes. Plants, animals, fungi and microorganisms form of the most important, though far more di cult to measure, criteria of vulnerable to cost volatility,” notes WWF’s Jennifer Meunier CHANGE
government support of the WWF agenda continues to grow – signaling a complex, interconnected web of ecosystems and habitats providing success into account, including well-being and happiness. TO Eleni Androulaki. “Moreover, companies realize that they can reduce
that a shi in attitude toward the state of the environment and society’s humanity with clean water, breathable air, food, medicine, energy and “ e GDP suited a di erent era and now we need a metric for our times,” costs by being more sustainable – for example, using more energy
impact on it, is taking place among top business leaders and policy makers. more. ere are already millions of people around the world who are says Nic Marks, a fellow at the London-based New Economics Foundation e cient buildings results in reduced CO2 emissions and lower energy
Since 1985, the WWF has invested more than $9bn in more than feeling the consequences, in rich and poor countries alike. Power and founder of its Centre for Well-Being. “During the Second World War, costs. Companies also stand to gain additional bene ts from proposing
05
11,000 projects, spending $366m on conservation programmes in 2009 shortages, uncertainty over food security and water availability, and production was important. A er the war was the need for rebuilding. We’re sustainable products to consumers – including an improvement of their
(the most recent gures available), up from $302m in 2008 and $286m increased vulnerability to natural disasters and diseases are making 05 Leonardo DiCaprio way past that. We need to account for our ecological footprint and see how overall image.”
in 2007. is comes amid a decline in income from $684m in 2007 to headlines on a daily basis. we’re operating on the planet. e GDP is o en precisely wrong in that it’s Yves Manfrini, a fund manager of Union Bancaire Privee, Switzerland,
$598m in 2009, a time period that saw record increases coming from the “Just as a few lonely economists warned us we were living beyond not measuring progress, just the making of stu .” adds: “In a world of shrinking resources, those who rst recognise the
corporate (up to $70m in 2009 from $68m in 2007) and government (up our nancial means and overdrawing our nancial assets, scientists 01 Drought in french guiana- e foundation developed a new marker for measuring the success need for sustainability and adopt appropriate strategies will succeed best
to $130m from $99m for the same period) sectors. are warning us that we’re living beyond our ecological means and mangrove tree of nations, which it has dubbed the Happy Planet Index. HPI combines in future global competition.”
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Uploaded byGlobal Competitiveness Forum - GCF
THINK ( Q3- 2010 )
The document discusses several global issues and events: 1) The IMF warns that the US and Europe face the worst jobs crisis since the 1930s with 30 million jobs lost globally since the recession began. 2) Saudi Arabia is building the world's largest desalination plant and has signed contracts for water projects worth over $1.7 billion to supply water to cities. 3) Confidence in the Saudi domestic market is improving according to a survey, with business leaders becoming more optimistic and consumers returning to shopping.
THINK ( Q3- 2010 )
- 1. 2 0 10 G L O B A L I S S U E S I N P E R S P E C T I V E 01
- 4. I S SU E 1 5 2 0 1 0 G L O B A L I S S U E S I N P E R S P E C T I V E “VOLUNTEERING IS A NECESSARY PART OF CREATING A VIBRANT AND DYNAMIC CORPORATE ENVIRONMENT...YOU UNCOVER ASPECTS YOU HADN’T PREVIOUSLY BEEN ABLE TO SEE” KLAUS KLEINFELD, CEO, ALCOA 24 THE FRUITS OF IMAGINATION Introducing an internationally-acclaimed creative lm 50 THE FIGHT AGAINST BREAST CANCER Breast cancer is on the rise around the world, but new 64 FALL FOR COLOUR Where to spend and what to buy to stay on trend REGULARS OPINION project that challenges world hunger. technologies mean that the odds of surviving are greater than ever. this autumn. 13 SPECTRUM 32 SAMA CEO SPEAKS TO THINK THINK spans the globe for creative new ideas THINK talks exclusively to H.E. Dr Muhammed Sulaiman Al-Jasser, Governor of SAMA, on the topic of a unified GCC currency 26 THE POWER OF 10 54 THE BIGGER PICTURE 68 WANDERLUX 19 PICTURE PERFECT Saudi Arabia committed to become one of the top ten Growing understanding of cost-e ective but Travellers might have tightened their belts and stayed A look at the growing popularity of artistic photography along 36 THINK ROUNDTABLE with some of its brightest new talent most competitive destinations in the world by 2010. Goal environmentally sound practices is propelling industry in a home last year, but this year, they’re not skimping. The euro been operating since 2002 but the recession has reopened the debate on the workability common currencies achieved; what next? more sustainable and socially responsible direction. 83 FUTURE THINKING 74 PROJECT 60 Efficient living in future New York 39 FORWARD THINKING 44 PUTTING PEOPLE FIRST 60 ASSET MANAGEMENT rough “Project 60”, the newly established Economic 85 BOOKS The World Future Society’s Futurist of the Year, Theodore J Gordon, looks at factors that can alter the fate of the world Klaus Klein eld, CEO of aluminium company Alcoa, Despite serious concerns about the planet’s future, the Cities Authority will showcase the best in contemporary Everything you need to know on why it’s nice to be important, but it’s more important to World Wildlife Fund is optimistic about change, and more Saudi art, starting with the work of Ola Hijazi. 86 VISIONARY 40 WHAT DO YOU THINK? be nice. heavyweights are joining the cause. Dr Craig Venter Graduate and post-graduate students discuss the future of capitalism 06 07
- 5. SAGIA EDITORIAL ADVISOR Fahd M Hamidaddin EDITORIAL LIAISON 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 catherine@motivate.ae FEATURES EDITOR Dorothy Waldman dorothy@motivate.ae CHIEF SUB EDITOR Iain Smith iain@motivate.ae EDITORIAL ASSISTANT Belinda Igaya belinda@motivate.ae GENERAL MANAGER GROUP SALES Anthony Milne anthony@motivate.ae GENERAL MANAGER SPECIAL PROJECTS Ashish Limaye ashish@motivate.ae GENERAL MANAGER – PRODUCTION + CIRCULATION S Sasidharan sasidharan@motivate.ae PRODUCTION MANAGER C. Sudhakar sudhakar@motivate.ae DISTRIBUTION Nayeem Dakhway nayeem@motivate.ae DESIGN Design Studio INTERNATIONAL CORRESPONDENTS Ashlee Beard, Steve Hill, Joanne Molina, Glenn Freeman, Lisa Vincenti, Laura Collacott SAUDI ARABIAN GENERAL INVESTMENT AUTHORITY (SAGIA) SAGIA HEADQUARTERS Imam Saud Bin Abdulaziz Road (University Road), PO Box 5927, Riyadh 11432, Kingdom of Saudi Arabia, T +966 1 203 5555 F +966 1 263 2894 E Info@sagia.gov.sa SAGIA INTERNATIONAL OFFICES MIDDLE EAST & AFRICA Hatem A Al-Ahmad; E mena@sagia.gov.sa EUROPE Mai Al-Torki; E europe@sagia.gov.sa FRANCE Lucile Pons van der Slikke; E france@sagia.gov.sa ITALY Mai Al-Torki; E italy@sagia.gov.sa GERMANY Dahlia T Rahaimy; E germany@sagia.gov.sa UNITED KINGDOM Sara Bouzo; E uk@sagia.gov.sa THE AMERICAS Ahmed Islam; E americas@sagia.gov.sa WASHINGTON DC Ahmed Islam; E americas@sagia.gov.sa EAST ASIA Noriko Sozuki; E japan@sagia.gov.sa WEST ASIA Meshari S. Al-Khaled; E singapore@sagia.gov.sa MOTIVATE PUBLISHING HEAD OFFICE PO Box 2331, Dubai, United Arab Emirates T +971 4 282 4060 F +971 4 282 4436 E motivate@motivate.ae ABU DHABI E motivate-adh@motivate.ae LONDON E: motivateuk@motivate.ae INTERNATIONAL MEDIA REPRESENTATIVES AUSTRALIA Okeeffe Media; E okeeffekev@bigpond.com.au CHINA/HONG KONG Emphasis Media Limited; E advertising@emphasis.net CYPRUS Epistle Communications & Media; E nasreenk@epistlemedia.com FRANCE/SWITZERLAND Intermedia Europe Ltd; E administration@intermedia.europe.com GERMANY IMV International Media Service GmbH; E j.hoffmann@vhb.de INDIA Media Star; E ravi@mediastar.co.in ITALY IMM Italia; E lucia.colucci@fastwebnet.it JAPAN Skynet Media Inc.; E skynetmedia@y2.dion.ne.jp TURKEY Media Ltd; E mediamarketingtr@medialtd.com.tr UNITED KINGDOM Spafax Inflight Media; E nhopkins@spafax.com UNITED STATES Redwood Custom Communications Inc.; E brigitte.baron@redwoodcc.com 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 copyright. sagia.gov.sa 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. EDIT 2010 WINNER’S CIRCLE In this issue THINK focuses on the rewards of winning Such goal-setting approaches are also re ected within the through uni ed strategic and tactical approaches. cultural landscape, a rich tapestry that is unfolding further e joining of hands to form the worlds largest human across the region. ribbon to create awareness of breast cancer; the uniting of e environment is also inextricably tied to global countries to create a stronger single currency and economic survival and success, with the new Saudi Arabia leading zones - each of these outcomes is achieved only through regional progress in enhancing the environmental agenda at goal orientation, careful manoeuvring and evaluation. all levels, from individual through to corporate and political. In addition to planning, leadership qualities are Only through leveraging each of the above concepts, paramount in achieving success in all disciplines of life, combining thought and action, can we stand atop the whether cultural, social, political or economic. winners podium and continue the perpetual drive for Fostering collective, critical thinking and encouraging success. debate at all levels is just as important. is creates knowledge and opinions that can be leveraged in achieving Catherine Belbin, Group Editor individual and national goals. THINK@motivate.ae CORBIS A cancer cell 011
- 7. LEADING THE WAY WRITTEN BY LAURA COLLACOTT From the memoirs of Britain’s former Prime Minister to the strong position of the Arab world in the economic downturn, there is plenty catching the eye across the globe 013
- 8. SPECTRUM JOBS IN CRISIS LIFE BLOOD THE International Monetary Fund (IMF) is SAUDI Arabia is to build the world’s largest warning that the United States and Europe face desalination plant having signed a deal with the worst job crisis since the 1930s. e labour Doosan Heavy Industries & Construction for market is in dire straits. “ e recession has le a US$1.46billion facility in Ras Az Zawr. It will behind a wasteland of unemployment,” says have a capacity of 228 MIGD (Million Imperial IMF chief Dominique Strauss-Kahn, stressing Gallons per Day), enough to supply 15,000 that joblessness could cause an explosion of people, and use the combined processes of unrest and destabilise democracies. Multi-Stage Flashing and Reverse Osmosis. According to a joint IMF-ILO (International Water is a heavily pressurised resource in Labour Organisation) report, 30 million jobs the region and demand grows as quickly as have been lost since the downturn; the majority desalination plants can be built. Kuwait was Money matters in richer economies, and 210 million people are the rst country to build a desalination facility A recent customer poll into the Best now without work. Compounding the problem, in the 1960s and today more than 50 per cent Domestic Cash Management Bank and its resolution, the experts anticipate that of all desalination occurs in the Middle East, voted the Saudi British Bank (SABB) as growth, when it rebounds, will be less labour with 24 per cent in Saudi Arabia. top in the field. The survey, conducted intensive and require fewer workers. Globally, In addition, the country has signed contracts by Euromoney, was based on feedback industry needs to create 45 millions jobs a year for the construction of a freshwater pumping from cash managers, treasurers and to just tread water. station to deliver water between Taif and Baha. financial officers worldwide who were e leaders of the ILO and IMF are calling e deal is worth US$283million and when asked to rate the services provided by Memoirs of a upon governments to commit to policies complete will supply 80,000 cubic metres of their lead cash management bank. It is that focus on job creation and e ective social desalinated water daily from the plants in the third year running that the bank has Prime Minister dialogue, mitigating the threat of unrest. Shuaiba and Shaqeeq to four additional cities. walked away with the award. Since stepped down as Prime Minister “Tackling the jobs crisis is not only critical for “This award clearly demonstrates that ©UNESCO/ADA of Great Britain, Tony Blair has turned his hand to many things, including being a meaningful global economic recovery, but also for social cohesion and peace,” Strauss-Kahn RISING CONFIDENCE our approach to cash management is being well received in the Kingdom. Middle East Peace Envoy. He has now adds. CONFIDENCE in the Saudi Arabian domestic We are committed to delivering top penned his book, A Journey, which describes his life as a political leader. CULTURAL UNDERSTANDING market has improved, supporting recovery, according to a recent survey by Banque Saudi SAUDI HOSTS GLOBAL FORUM quality service and are focused on creating tailor-made solutions based In it, you can read first-hand about the Fransi. Business leaders are beginning to take LEADERS from international business and politics will gather in Riyadh, Saudi Arabia for the on our customers’ needs,” says David difficult decisions it takes to run Britain UNESCO and Saudi Arabia have together “Saudi Arabia wanted to tackle all problems more investment risks for higher returns, while 2011 Global Competitiveness Forum (GCF), held from 22 to 25 January. Dew, managing director of SABB. “This domestically and internationally; the launched the King Abdullah Programme, an through dialogue that deepens the common consumers are returning to the shops. Executives Entering its h year, the GCF is an annual meeting of top business executives, international technical strength, combined with our highs, the lows; the conflicts, the peace international initiative to promote a culture of values of nations and cultures,” says Prince are still proceeding warily, but more are prepared political leaders, selected intellectuals and academics who share an interest in global extensive foot print in the Kingdom and negotiations; the reforms and the internal dialogue and peace. Faisal Abdullah, Education Minister. to take bullish moves. competitiveness. Paul Hawken, internationally acclaimed environmentalist, businessman and our global reach has positioned SABB as struggles. Blair seeks to illuminate behind- To mark the occasion, representatives from He stressed the importance of nding e Eurozone debt crisis a ected sentiment author, is among the con rmed keynote speakers at this year’s event, which features a cast of one of the strongest cash management the-scenes political life, draw out lessons UNESCO and e Kingdom o cially opened a solution to the Palestinian problem and in the third quarter, but businesses have global leaders from business and politics. banks in Saudi Arabia.” on leadership in difficult, challenging a pertinent cultural exhibition that displays 23 of promoting world peace through the mitigated this by planning increased e program is designed to create a discussion platform for various international stakeholders times and project his opinions on the paintings by top artists from around the world, encouragement of peaceful coexistence production capacity and new sta hires. on a broad range of topics. Innovation is the theme of the 2011 GCF, with each annual forum shape of the new world order to come. Twenty Windows on the World. between faiths and cultures. Of course, a higher oil price also underpins cra ed around a central focus. Combating fraud con dence, as do perceptions of improved real Delegates from past events include Tony Blair, former British Prime Minister, James Dr Abdulaziz Al-Khwaiter of the Finance Community estate prices and better share performance. Wolfensohn, 9th President of the World Bank and Michael Dell, Founder and CEO, Dell Inc. To learn more about the GCF, agenda or speakers you can visit www.gcf.org.sa Ministry spoke at the Consumer Protection from Fraud and Counterfeiting forum conscience In an effort to instil a sense of social EMERGING WEALTH INSURING SAUDI INFLATION DIPS to stress that commercial fraud and counterfeiting are issues that have responsibility among business people in Saudi Arabia, The Red Crescent is EMERGING markets are poised to be worth US$80trillion in two decades, more than ve THE Saudi insurance sector is ripe for mergers does not happen this year, it will happen next INFLATION in Saudi Arabia has eased from an 18-month peak of 6.1 per cent to 5.9 per cent. is HIGH ENERGY role at regional and international levels. “Every Arab country should comply with negatively affected consumers and the wider public. He says that the government, working to establish Friends of the Red times what they are worth today, according to and acquisitions, according to Ali Al-Subaihin, year or the year a er. e catalyst would be is the highest among the Gulf crude producers. THE Council of Ministers in Saudi Arabia reforms and agreed upon resolutions and show in conjunction with the private sector, Crescent committees at all chambers research by Goldman Sachs. CEO of Tawuniya. He said authorities are keen for the regulator to intervene and suggest that e governor of the Saudi Arabian Monetary has underlined its support for e orts to a high degree of credibility and seriousness has taken a collective stand to eradicate of commerce and industry across the China is set to become the world’s largest stock to develop the employment market for the some rms merge or for some rms to seek Agency (SAMA), Muhammad Al-Jasser, says ensure energy security. Chairing the Cabinet in implementing resolutions,” a Cabinet commercial fraud and counterfeiting. Kingdom. market, thanks to fast economic expansion and growing population and reduce dependency the regulator’s approval to merge,” says Ali Al- the rises are a result of increased global food meeting, King Abdullah spoke about statement said. The First Arab Forum for Consumer The policy aims to exchange ideas that a growing capital market. A report by the IMF on oil, having licensed 30 new insurance rms Subaihin, speaking at theReuters Middle East prices and believes monetary measures are recent communications to develop good e Cabinet urged the international Protection from Fraud and Counterfeiting will help to promote humanitarian and anticipates that emerging economies will expand dealing largely in health and motor insurance, Investment Summit. powerless to curb rising in ation. working relations with the Syrian President community to extend all-out support to has brought in new recommendations philanthropic activities with the support 6.4 per cent in 2011, compared to just 2.4 per which is not currently compulsory. “ e sector is ripe for consolidation. It does Experts believe the in ationary pressures are Bashar Assad; Iranian President Mahmoud Pakistan to help the country recover from the for Saudi Customs to limit the supply of of business people. Committees will be cent in developed countries. Few of these companies have been able not look like the regulator will license more di cult to manage in the short-term as they Ahmedinejad; and Egyptian President Hosni recent oods that killed hundreds of people fake products, which have so far been charged with arranging appropriate Timothy Moe, the report’s author, estimates to gather the scale necessary to become insurance rms. For us, we will consider any are in uenced by global trends and only rental Mubarak. and rendered thousands more homeless. It also effective. They have cleared the country’s ways of collecting donations, holding that institutional investors will buy US$4trillion pro table, leading analysts to believe that viable opportunity, the only problem is that we in ation can be pragmatically challenged ere are also calls in the Cabinet to agreed to sign MOUs with Lebanon, Vietnam name from the strict regular watch list, activities and hosting relevant in equities to raise their stake in emerging mergers and acquisitions will be required. have yet to nd the right opportunity.” with structural xes and the building of more strengthen the Arab League co-operation in and South Korea to improve youth welfare, particularly in relation to the protection of programmes. markets from six per cent to 18 per cent. “Consolidation is bound to happen, if it housing units. order for the organisation to play an e ective agriculture and water respectively. intellectual property rights. 014 015
- 9. SPECTRUM GENESIS DESIGN BY RADO SOFITEL LUXURY HITS KSA EASTERN PROVINCE THE So tel Al Khobar e Corniche, the latest luxury hotel to open in the popular Eastern Province of Saudi Arabia, has opened in Al Khobar, an important regional economic OPEC’s half- centre reputed for its luxurious malls, pedestrian streets, and numerous cafés and century restaurants. In September, OPEC, the organisation “Consistent with the So tel luxury brand’s representing the countries that claim three- image and positioning, we are con dent that quarters of the world’s proven reserves, So tel Al Khobar e Corniche will be the marked its 50th anniversary. landmark property for the So tel brand in the The organisation played a key role Kingdom of Saudi Arabia and will complement in restoring the price of US$70-80 per our other properties of the region,” said Sami barrel – the range it feels is appropriate Nasser, So tel Vice President, Middle East, for consumers and producers – during Africa and Indian Ocean. the latest recession. Senior officials in Located on Saudi Arabia’s east coast, the Libya, however, have claimed that this elegant hotel looks out over the Arabian Gulf figure should rise to US$100 per barrel and o ers views over both the city and the because the rising cost of imports has sea. e hotel’s interiors were created by, WA eroded members’ income: wheat prices International, imbibed with the spirit of the have risen by over 50 per cent as a Orient, whilst the powerful silhouette of the result of the Russian drought, a market building dominates the coastline. that Libya buys heavily from. So tel Al Khobar e Corniche joins other Acting as the industry’s only regulator, So tel hotel properties due to open in Bahrain, OPEC has the power to influence price Egypt and Mauritius in 2011. and supply and is set to have a more critical role going forward as world demand increases and supplies become more limited. Although non-OPEC production is forecast to grow, over the longer-term, forecasters believe that OPEC’s market share will increase thanks TOURISM BUILDING TOWARDS SUCCESS to ongoing exploration. DRIVE SAUDI Arabia awarded US$6.5billion worth of IN order to tap into a niche market of construction contracts in the second quarter of Cancer research conservative tourism, the Saudi Commission 2010, almost double the value of contracts in the AstraZeneca and Cancer Research UK for Tourism and Antiquities is launching rst quarter and a trend likely to continue. have taken a new drug into clinical trial a programme called “Umra Plus”. is will Most spending has been in the sectors of that could revolutionise the treatment of encourage pilgrims to extend their stay in the energy and residential real estate, and the sector cancer. Kingdom and visit previously inaccessible sites has been boosted by massive government AZD-3965 blocks cells’ ability to such as the ancient Nabatean city in Madaen spending on infrastructure as well as stated generate energy and therefore survive – Saleh and the remains of the famous railway government priorities that have spurred a AstraZeneca’s development department linking the Levant with the holy city of Mecca. US$344million in maintenance and operations number of mega-projects. are to see if this can be of benefit to In an e ort to enhance the quality of contracts to keep the country’s airports clean, e construction sector in the country is cancer treatment. At the end of the trial the tourism provision in the country, the landscaped and operational. forecast to grow by 6.4 per cent in 2010 and will the pharmaceutical giant has the option commission has proposed that Saudis working All initiatives form part of an overall strategy contribute 10.4 per cent to GDP. Employment by to develop the drug further or surrender in the sector are sent abroad for familiarisation to increase tourism receipts and boost the construction companies accounts for a staggering the rights to Cancer Research Technology and training to improve service standards as sector’s contribution to non-oil GDP to 11 per 40.4 per cent of the workforce. It is growing at a to secure a different partner, maximising they disseminate their learning on their return. cent over the next two decades. It currently faster pace than the hydrocarbon sector, which is the chance of the drug reaching patients. e government has handed out brings 6.5 per cent of the non-oil GDP. expected to grow by 4.4 per cent this year. r 5.5 AUTOMATIC / HIGH-TECH CERAMICS / WWW.RADO.COM 016
- 10. ART+CULTURE PICTURE PERFECT AS THE INTEREST AND DEMAND FOR PHOTOGRAPHY CONTINUES TO INCREASE, THE VALUE OF VINTAGE AND CONTEMPORARY WORKS IS RISING. WRITTEN BY DOROTHY WALDMAN WORKS by Robert Frank, Richard shot by Irving Penn in 1957, embodies but actually went for US$86,500 while other art forms, photography requires Avedon, Irving Penn and Ansel the majestic essence of the Spanish Marilyn Minter’s Swarve from 2005, the artist to actually be in the presence Adams were among the most sought artist as well as the timeless elegance of sold at the middle of its estimated range of the subject, determining what is a er pieces at the recent auction of the renowned photographer. It sold for at US$31,250. to be photographed and what is to be outstanding photographs held on US$182,500, considerably more than A summer sale at Sotheby’s of excluded, how and what angle to frame October 8 by Phillips de Pury & the estimated US$80,000-US$120,000 Photographs from the Polaroid the photo at and exactly which moment Company in New York. predicted prior to the sale. His 1951 Collection exceeded the expectations for to grasp, all of which are highly Estimated to yield between photograph Chef made an impressive the entire sale a er just the rst night. subjective. US$100,000 and US$150,000, Robert showing, bringing US$134,500, four A new record was set for Adams with Photography has found an avid Sotheby’s New Franks’ 1955 Trolley - New Orleans is times its predicted selling price of his iconic mural-sized prints, which new following in a generation that is York undoubtedly one of the pillars of classic between US$30-40, 000. achieved the top ve prices of the rst intrigued by the fusing of science and Photographs American photography and it sold Other photographic masterpieces night’s sales. Clearing Winter Storm, art to interpret reality by freezing time, from The for US$158,5000. Richard Avedon’s included in this unprecedented sale Yosemite National Park, from 1942 sold capturing an instant that can then be Polaroid Brigitte Bardot, Hair by Alexandre, Paris that included Robert Mapplethorpe’s for US$722,500, well above its high manipulated to expand the limits of Collection Studio from 1959 is among his most Calla Lily from 1986 which went for estimate of US$500,000. creativity and the perception of reality. Ansel Adams celebrated and rare portraits and was US$74,500, a number of works by e high prices being paid for roughout the world, photography Canyon de estimated to bring a sum in the same Ansel Adams, as well as the more recent photography are an indication of the and photography exhibitions are Chelle National range as Trolley, but actually sold for Paradise 23 Sao Francisco de avier, resilience of the market, according increasing in importance and Monument, US$170,000. Brasil, omas Struth’s 2001 work that to Vanessa Kramer, director of popularity, as illustrated by the number Arizona Pablo Picasso a la Californie, Cannes, was estimated at US$60,000-80,000, photographs at Phillips de Pury. Unlike and range of exhibits on o er. 019
- 11. ART+CULTURE Parcours de TravaliMaison 01 Europenne de la Photographie, Paris Karl Lagerfeld, the renowned France- HIGHEST based German fashion designer, o ers some impressive surprises in his PRICES innovative, experimental photographic PAID FOR work. If the exhibit merely featured his work in fashion, it would still be PHOTOGRAPHS worth seeing, but this proves to be so much more than that with intriguing 1. 99 Cent II Diptychon (2001), portraits, landscapes and architecture. Andreas Gursky His work ranges from silkscreen (Three prints of the same photograph) cityscapes to Lichtenstein-inspired Pop- US$3,346,456, February 2007; like pictures to a neon-encircled self- US$2,480,000, November 2006; portrait in his e Beauty of Violence US$2,250,000, May 2006 series, which features Italian model Baptiste Giabiconi. Until October 31. 2. The Pond-Moonlight (1904), Edward Steichen Brasilia, 1500 Gallery, New York US$2,928,000, February 2006 Celebrating a half century of Brasilia, tonal values that were re ected in the largest exhibition of art from Islamic the purpose planned and built development of the Vienna Secession. culture. e celebration will also include 3. Kremlin of Tobolsk (2009), capital in the centre of Brazil, the He is considered the master of the several exhibitions, lectures and cultural Dmitry Medvedev 1500 Gallery in New York, which autochrome, a technique with rich, programmes, including installations US$1,750,000, January 2010 specialises in Brazilian photography delicate colours. from the original 1910 exhibition (which and photographers, is displaying From October 2 to January 23, 2011 featured more than 3,600 pieces and 4. Nude (1925), Edward Weston vintage photographs of the city. set new standards for the research and US$1,609,000, April 2008 Curated by Murillo Meirells, the images Facing East, Davidson College, reception of art from Muslim countries) capture the planning, construction United States as well as contemporary art, design, 5. Georgia O’Keeffe Hands (1919), and inauguration of the capital city e works of three US-based artists photography, architecture and fashion, Alfred Stieglitz during the late 1950s. e architectural, of Middle Eastern descent look at the with displays designed by innovative US$1,470,000, February 2006 gurative and photojournalistic images concepts of identity and “otherness’ Egyptian architect Samir el Kordy. in the Brasilia exhibition highlight the in a multimedia exhibition that Until January 9, 2011. 6. Georgia O’Keeffe Nude (1919), idealism of the socialist government examines traditional structures and the Alfred Stieglit, and its team of visionary urban contemporary visual culture. A Sense of Being, Saudi Pavilion at US$1,360,000, February 2006 planners, architects and landscape From October 14 to December 8. Shanghai World Expo 2010 designers, including Lucio Costa, Oscar More than 130 contemporary works of 7. Untitled (Cowboy) (1989), Niemeyer and Roberto Burle Marx. Changing Views: 100 years after art created by 23 Saudi contemporary Richard Prince Until November 27. the Exhibition Masterpieces of artists express a sense of being through US$1,248,000, November 2005 Muhammadan Art in Munich, Haus faith and respond to global and local Heinrich Kuhn, Musée de der Kunst, Munich issues. e exhibition, under the 8. Nautilus (1927), Edward Weston l’Orangerie, Jardin des Tuileries, e Future of Tradition – e Tradition auspices of the King Abdulaziz Center US$1,082,500, April 2010 Paris of Future will mark the centennial of the for World Culture at Saudi Aramco, Pictorialism, an international includes photography, calligraphy, 9. Athènes Temple de Jupiter olympien pris photographic movement around the poetry, paintings, sculptures, de l’est (1842), beginning of the 20th century that animations, videos, and installations. Joseph-Philibert Girault de Prangey was closely linked to Alfred Stieglitz Until October 31. US$922,488, 2003 and Edward Steichen, strove to create photographic images that rivalled the Photography Through the Eyes of 10. The Great Wave Sete (1857), artistic merits of painting. Heinrich Saudi Arabian Women Gustave Le Gray Kuhn, one of its central gures, A recently released book, Photography US$838,000, 1999 01 New was known for his experiments rough the Eyes of Saudi Arabian Installation of with printing techniques such as Women, by Saudi Arabian 11. Joueur d’Orgue (1898-1899), the Modern Art gum bichromate. Work like this is photographer Rania Abdel Razek, a Eugène Atget Galleries included in the exhibition, as well photography teacher at Dar Al-Hekma US$686,500, 2010 Museum as his progression from Romantic College, features a collection of images Associates/ Impressionism to a less detailed, by Saudi female photographers. It 12. Andy Warhol (1987), LACMA almost abstract style that emphasised spawned an exhibition focusing on the Robert Mapplethorpe, 02 Red the study of light, emphasising the 02 artists’ perspectives. US$643,200, 2006 OverLook, 2009 020
- 12. ART+CULTURE SHOOT LOCALLY, SHOWGLOBALLY JURY HRH Princess Reem Al Faisal CATEGORIES Photographer Born in Jeddah, Saudi Arabia, she studied Individuals may submit in up to three of Arabic Literature at King Abdul Aziz the following categories. University in Jeddah and photography at SAUDI ARABIAN PHOTOGRAPHERS HAVE BEEN Speos School in Paris. INVITED TO PARTICIPATE IN A THINK PHOTOGRAPHIC Design & Architecture Buildings, COMPETITION BY SUBMITTING A RANGE OF sculpture or even architectural details Rachel Hotchkiss viewed from different angles and Creative director, Image Source PHOTOGRAPHS THAT HIGHLIGHT THE DIVERSITY perspectives, perhaps contrasting the Rachel Hotchkiss leads the team responsible OF THEIR COUNTRY. contemporary and historic, or focusing for the creation of both photographic images WRITTEN BY DOROTHY WALDMAN on the beauty of geometry or exquisite and motion clips and sets the creative “SAGIA BELIEVES THAT brickwork, offer talented artists rich and strategy. Her role is to conceptualise, ART IS A REFLECTION diverse possibilities to capture Saudi visualise, conceive and produce OF CREATIVITY AND Arabia in fresh, creative ways. contemporary creative products. INNOVATION. IT IS Michal J Steckiw MOST IMPORTANTLY A UNIVERSAL LANGUAGE, Identity Visually explore the questions, Jury panel moderator & consultant, A BRIDGE BETWEEN “Who am I?” “Where do I come from?” projects manager COUNTRIES, CULTURES and “Where do I belong?” to facilitate Michak Steckiw founded MJS Creative AND PEOPLE. THINK an understanding of the Saudi Arabian and works with the creative industry and MAGAZINE, AS A NEW culture in the international arena. international design bodies in Canada, VOICE OF SAUDI ARABIA United Kingdom and Poland. He also HEARD BY GLOBAL Development Underscoring the new is involved in Design Weeks in Qatar, BUSINESS AND THOUGHT competitive Saudi Arabia, this category Australia, Cuba, Italy and Spain and the LEADERS, IS PROUD focuses on advancements in such areas World Design Congress in Beijing. He is TO COMMUNICATE as education, healthcare, infrastructure, also a photographer. THE KINGDOM’S industry, science and the economy. DEVELOPMENT AND TRANSFORMATION THAT UNVEILS Culture & Society Images of people Andrea Springer EXCEPTIONAL BUSINESS and events, those that tell a story in that Programme director, World Design Capital OPPORTUNITIES. one instant, even without words, are Andrea Springer currently works for the TODAY’S Saudi Arabia is rapidly visual arts and media experts who will Saudi culture and history. For me, light is Bernado, one of the panel of judges. AND THERE IS NO the theme of this category. Think of the International Council of Societies of Industrial transforming itself into one of the judge the submissions: “Photography one of the many manifestations of God. In addition to encouraging great BETTER MEANS OF photo accompanying a news story about Design – an initiative that seeks to showcase most competitive economies in the is one of the most e ective ways Every photograph is a pattern of light and photography, this competition also COMMUNICATION THAN a celebrity or important event that says cities that have leveraged design as a tool world and it is becoming one of the of reaching out to an international shade. For me, my photography is a way challenges the artists to do much THE ART CAPTURED BY more than the words. Submissions may to improve social, cultural and economic most lucrative markets for strategic audience with a story or projected to praise God’s glory in the universe,” more – to change perceptions. “As a THE LENSES OF SAUDI’S be in either colour or black and white. development. investment. Saudi Arabia is also image. It transcends linguistic, she says. media professional, it’s exciting to be TALENTED PEOPLE”. FAHD M. HAMIDDADIN home to creative, talented people who religious and political barriers. It serves e tenets of good photography will part of something that can change the GENERAL DIRECTOR OF MARKETING Natural Beauty Be it sand dunes Adam Scholes are proud of their country’s culture, as a point of connection between a also be at the forefront of the judging. perceptions and expand the concept AND COMMUNICATION, SAGIA that stretch past the horizon or a single Global creative Director, JWT progress and aims for the future. photographer and his audience across Rachel Hotchkiss, the creative director of art as a tool to improve the world blossom, the scale and possibilities of Daniel Bernardo An unconventional artistic talent who has To communicate the new Saudi various cultural codes.” of Image Source, another judge, adds: we live in, bringing to life the essential for supporting Saudi youth and the photography of nature in the unique Lead designer and creative director, worked in music, videos and print, Adam Arabia to the world, THINK is Photographers submitted up to ve “When considering the question, what creative thought,” Bernardo says. feel strongly about the patriotic regions of the Kingdom is almost endless. InSkin Media Scholes has won numerous awards in a sponsoring the National Photographic entries, in up to three of the seven makes a good image, I always respond – All entries must were submitted by implications the competition brings. Daniel Bernardo is co-founder and chief variety of media, including a Silver Lion at Competition 2010. All photographers categories that re ect di erent aspects an image that is personally unique and October 31 for judging and the winners Meanwhile sponsor Bravo, sees THINK Documentary Record an actual event, designer of Lodren Studio, an independent Cannes and a D & AD Pencil and Poster of in Saudi Arabia – amateur or of the new Saudi Arabia. e categories carries an individual thought, opinion will be announced online at a later date, magazine as an ideal way to reach its not altered by the camera or technology, experimental design house in Brazil, and the Year. professional, young or old, regardless of were selected to allow for a three or idea, but communicates globally.” with cash prizes awarded to those who CEO class readership. e exhibition to accurately document a person, place, has a cultural and artistic background that gender – have been invited to capture dimensional view of the Kingdom. Art, especially photography, has come rst and second. Additionally, design is sponsored by Focal Design. issue or significant historical event at includes social and environmental design, their vision of the Kingdom of today to However, in addition to re ecting their the power to stir emotions with the the winning photographs will appear a particular moment in time. The event art direction, anthropology/sociology and PRIZES communicate the theme of ink Saudi country, the photographers will also capturing of a single instant in time in future issues of THINK and all high DATES should have taken place between 2009 history of art. First Prize: US$15,000 Arabia: Capturing Advancement in provide insights into their own values and to facilitate change, which is one quality photographs will be shown in a e exhibition of entrant’s work will be and 2010. Second Prize: US$8,000 Design, Economy and Society. and their approach to their art, providing of the challenges of this competition. special exhibition. held in Jeddah at the Ana Special Mall Iva Babaja Best in category: Awarded to the Appreciating the reality that art an even deeper look into the essence “In an ever changing world, creative on the November 17 and in Riyadh at Advertising/Commercial Create an Designer and Photographer, Vice-President, best in each of the seven categories: re ects the essence of the culture and and creativity of those who live, and are professionals face the challenge to SPONSORS the end of November, where the winning image designed to sell a product, idea Icograda/International Design Alliance US$1,000 (3,750 SR) the people that created it, THINK has therefore products of, what is to much of express through their work the thoughts e competition is sponsored by photographs and approximately 50 of or brand. Whether fashion, retail, music, Babaja is currently creative director at Euro selected photography as the medium the world the Saudi Arabian mystique. of society. is is a vital task that Toyota Land Cruiser, Abdullatif Jameel, the best participating photos will be design or other, use an avant-garde or RSCG agency in Zagreb and founder and Winning photographs will be published for this competition to communicate Some may view their art much as HRH sometimes is overwhelmed by business celebrating the 60th anniversary of displayed. traditional approach, but be creative and president of the Association for Promotion in THINK magazine. All high-quality the wonders of contemporary Saudi. Reem Al Faisal, a photographer who is demands and the wrong idea that production of the rst 4x4 cars in objective. Special effects and equipment of Visual Culture and Communications photographs will be showcased in a According to Michal Stecklw, one also a judge. “I like to de ne myself as extraordinary cannot be found in the Saudi Arabia; Al-Watan Newspaper, Submissions can be viewed at: are permitted in this category. (VIZUM). She has worked extensively with special exhibition. of the international jury of respected a Muslim artist, sprung from my native ordinary moments of life,” says Daniel is the media partner, and is known www.thinksaudiarabia.com various international art organisations. 022 023
- 13. ART+CULTURE THE FRUITS OF a work of this level. Utilising our simple expertise and limited resources to get the best out of what we can do. For example, we were having trouble with IMAGINATION sound during video capture due to the fact that we don’t have a sound system. We were forced a er that to record the whole voice in one shot in one of the studios and then merge it with the video. We also used normal lighting, AMONG THE WINNERS AT MICROSOFT’S ANNUAL IMAGINE CUP not cinematic lighting, because it is COMPETITION WAS A SAUDI ARABIAN TEAM, LED BY AL-MUHANNAD AL- very expensive. KADAM,WHO CREATED A FILM ABOUT CONQUERING WORLD HUNGER THAT What was it like to represent WON SECOND PLACE IN DIGITAL CATEGORY. WRITTEN BY DOROTHY WALDMAN Saudi Arabia in Poland? It was really a great feeling to represent IMAGINE a world without hunger, to another, yet our spirits dream of my country. e wonderful thing is that imagine a world where resources are solving all problems of all spirits in the my representation ended up winning used wisely and people voluntarily world, no matter what the problem is in a eld that nobody else has won help others, then imagine how you or what spirit it is, thus, our spirits are before me in a worldwide competition. can be the catalyst to bring about dreaming. It is an outstanding feeling to receive these changes. ese were among congratulations from all our Arab the challenges students tackled in Which came first, the story or the colleagues. eir congratulations were Microso ’s annual Imagine Cup graphic possibilities? always: “You are a pride for Arabs. competition in 2010, where young e idea of using graphics was there You raise our heads your victory is our people were challenged to use the from the beginning. We agreed to put victory.” is is one of the amazing power of their imaginations and the work together in this way, using expressions that still resonates in my technology to create a powerful visual motion graphics to present the facts mind and heart. message that can help change the world. and gures. e scenario was written More than 325,000 high school, based on available graphics possibilities. What’s next? college and university students from I have launched my next movie, Obama 113 countries participated in the What were some problems you Free Homaidan, which appeals to US competition. e winners in the 11 encountered and how did you President Barack Obama to use his categories were celebrated at an awards solve them? constitutional power of presidential ceremony in Warsaw, Poland, where the special e ects and clever computer ere were no severe problems – pardon to set free a Saudi man jailed for First Lady of the United States Michelle manipulations, the team created an Alhamdulillah – maybe resources sexual assault. I am aiming in the movie Obama relayed via video a message entertaining, educational lm that can shortage, since we are students, were to in uence US public opinion and reach that summarised the purpose of the be viewed at http://www.youtube.com/ annoying. But, with Allah’s Blessing we Obama with the hope that he would use challenge. watch?v=Q8A-F VeuU could use the simplest resources to get his powers to pardon Al-Turki. “ e ideas you are generating and Al-Kadam, who is also an the ways you are turning those ideas accomplished photographer, is a into action and into real solutions for student in the architectural department real problems is truly remarkable,” at the King Fahd University of she said. “ rough your ingenuity, Petroleum & Minerals. In an exclusive you are literally changing the world. interview, he told THINK about You are giving birth to new ways of his experience working as part of thinking, new ways of doing and new Dreaming Spirits. ways of learning. And isn’t that what imagination is all about?” What was your inspiration for the Let Us Eat Together, developed by name Dreaming Spirits and for Dreaming Spirits, a team of students your film? from Saudi Arabia led by Al-Muhannad e most important relationship that Al-Kadam, was awarded second connects us, before nationality, colour place in the Digital Media category, and language, is the human spirit. the rst win by a Saudi team. e Spirit is found in all of us, despite our short lm looks at world hunger and di erences. It is the one aspect that presents a solution that anyone who doesn’t change ere should be some can a ord food can participate in to humanity and love in human spirit help the less fortunate. Using graphics, is amount of love di ers from one 024 025
- 14. THINK 10X10 THE THE KINGDOM’S PERFORMANCE IN KEY INVESTMENT, ECONOMIC AND EASE OF DOING BUSINESS REPORTS CONTINUES TO IMPROVE, BUT THE COUNTRY’S AMBITIOUS PLANS FOR THE FUTURE POWER SHOW THAT IT IS NOT RESTING ON ITS LAURELS. OF 10 WRITTEN BY JOANNE MOLINA THE Saudi Arabian General Investment Authority (SAGIA) was proud to announce the extraordinary success of its 10x10 programme, more competitive, we will become larger recipients of FDI. A competitive investment environment attracts investment, which allows existing achieved when the Kingdom was ranked 8th for Foreign Direct Investment companies to grow, which opens the doors for new companies to form, (FDI) by the United Nations Conference on Trade and Development and ultimately leads to job creation and sustainable economic growth. (UNCTAD) earlier this year. As THINK was going to press, Saudi Arabia Investment, simply stated, is the oxygen of any economy.” was also awaiting the outcome of the World Bank’s 2010 Doing Business e Kingdom’s new ranking de nitively re ects the realisation of its Report, which would further secure its position among the top 10 most 10x10 programme. Established less than half a decade ago in 2006, it was competitive business destinations in the world. launched by SAGIA to enact reforms and promote targeted investments “Being in the top 10 means that, objectively speaking, at least according to with the goal of creating an economically competitive environment and independent international ranking agencies such as the World Bank’s Ease positioning Saudi Arabia among the world’s top 10 most competitive of Doing Business Report, Saudi Arabia is the most conducive environment economies by 2010. It sought to target, meet and exceed the criteria of for business in the world. And if investment goes where it is most welcome, internationally acclaimed agencies that evaluate countries’ performances which it does, then it means that investment will ow into Saudi Arabia, as globally competitive economic powers. which it has,” says His Excellency Governor Amr Al-Dabbagh. ese rankings convey vital qualitative and quantitative messages about “I imagine also that it could be seen to convey our ability to deliver on an the Saudi Arabian economic environment to the international business objective, which began ve years ago when we launched our 10x10 initiative, community. “Messages are subjective, rankings are objective. We are the which was to become among the top 10 most competitive economies in the world by 2010. And moreover, if it’s the case that countries that have high best place to do business in the world according to objective reports. I imagine, and it is our experience so far as indicated by the UNCTAD X“OUR NEXT GOAL IS ENCAPSULATED IN THREE NUMBERS, X rankings and/or have shown signi cant gains have done so by showing report, that investors will act on the favourability of the climate and X60, 24 AND 7. THE GOAL FOR OUR ECONOMIC CITIES IS X consistently superior performance in key macro and microeconomic areas, investment will increase, which is the very point of creating a better then we are one of those superior performing countries.” business climate,” Al-Dabbagh explains. X THE ULTIMATE IN COMPETITIVE DESTINATIONS, BY PROVIDING X Al-Dabbagh also acknowledges how numerous other vital accomplishments have helped accelerate the Kingdom’s success. “ e e initiatives stemming from 10x10 laid the foundation for Saudi Arabia’s rapid and sustained economic success, which has dramatically XALL GOVERNMENT SERVICES IN 60 MINUTES, 24 HOURS X Kingdom is also ranked by UNCTAD as the eighth largest attractor of FDI in the world, which is a con rmation of the correlation between contrasted with the recent worldwide nancial downturn. Foreign Direct Investment into the Middle East sustained a six-year continuous increase, X A DAY, 7 DAYS A WEEK.” X competitiveness and FDI in ows,” he says. “Of course, as we become even growing to US$90 billion in 2008, a time when the rest of the world was HIS EXCELLENCY GOVERNOR AMR AL-DABBAGH 026 027
- 15. THINK 10X10 FDI STOCK BY SECTORS IN 2009 (TOTAL US$ 147.1 BILLION) MAJOR PROJECTS AND COMPANIES / FOREIGN INVESTORS NATIONALITY BANQUE SAUDI FRANSI France SAUDI HOLLANDI BANK Netherlands SAUDI ARAMCO MOBIL REFINERY CO., LTD. SAUDI ARAMCO LUBRICATING OIL REFINING SABB (SAUDI BRITISH BANK) Netherlands BANK AL-JAZIRA Pakistan (SAMREF) USA CO. (LUBEREF) USA ARAB NATIONAL BANK Jordan THE MEDITERRIANEAN & GULF INSURANCE & SAUDI ARAMCO SHELL REFINERY CO. (SASREF) ARAMCO-TOTAL REFINERY France SAUDI INVESTMENT BANK USA, Japan REINSURANCE CO. MEDGULF Bahrain, Lebanon Netherlands SAUDI CHEVRON PHILEPS COMPANY USA 8.3% 3.1% 14.4% RABIGH REFINING AND PETROCHEMICAL COMPANY Japan SAUDI POLYMERS COMPANY USA EASTERN PETROCHEMICAL CO. (SHARQ) Japan ETIHAD ETISALAT CO. (MOBILY) UAE SAUDI METHANOL CO. (AL-RAZI) Japan MOBILE TELECOMMUNICATIONS COMPANY SAUDI YANBU PETROCHEMICAL CO. (YANPET) USA SAUDI ARABIA (ZAIN) Kuwait ALCATEL-LUCENT FRANCE (BRANCH) France 10.9% SAUDI CHEVRON PHILEPS COMPANY USA SAUDI PETROCHEMICAL CO. (SADAF) USA GULF STEVECORING COMPANY LTD. Kuwait JUBAIL PETROCHEMICAL CO. (KEMYA) USA SABIC TERMINAL SERVICES CO. (SABTANK) Netherlands SAUDI METHANOL COMPANY (AR-RAZI) Japan SAUDI ETHYLENE & POLYETHYLENE COMPANY France 16.7% NATIONAL METHANOL CO. (IBN SINA) USA AL-JUBAIL FERTILIZER COMPANY (AL-BAYRONI) Taiwan 5.3% SAUDI EUROPEAN PETROCHEMICAL COMPANY (IBN ZAHR) 01 02 Italy, Arab Countries ARABIAN INDUSTRIAL FIBRES CO. (IBN RUSHD) Arab Countries su ering major losses due to the global recession. Saudi Arabia’s in ows of great leadership in the Kingdom, especially by His Majesty, King grew 57 per cent to US$38 billion, the largest amount in the region. Abdullah bin Abdulaziz, the Custodian of the Two Holy Mosques, who is ARABIAN BEMCO CONTRACTING CO. LTD. Lebanon According to the 2010 World Investment Report published by UNCTAD, the chief architect behind the vision,” Al-Dabbagh says. AL-MABANI GEN. CONTRACTORS COMPANY LTD. Lebanon Saudi Arabia succeeded in attracting further FDI investments during 2009, And it is under the leadership of Al-Dabbagh that SAGIA has brought MIDDLE EAST ENGINEERING & DEVELOPMENT CO. LTD. Korea led largely by investments in industry. Total FDI in ows amounted to competitiveness to the top of the national agenda with the 10x10 initiative, TECHNIP SAUDI ARABIA LTD. France 10.5% 7.7% AL SAFI DANON CO. LTD. France US$35.5 billion and although these in ows were lower by seven per cent which has become a model programme for economic competitiveness ABB CONTRACTS CO., LTD. Swiss UNITED SUGAR COMPANY United Kingdom than the total FDI in ows attracted during 2008, they contributed to raising and investment. JAN DE NUL SAUDI ARABIA CO. LTD. Belgium. MODERN PRODUCTS COMPANY Swiss the internal FDI stock value to US$147.1 billion by the end of year 2009. CONTRACTING AND TRADING CO. (CAT) Lebanon FUTURE PIPE INDUSTRIES L.L.C. Netherlands Analysis of FDI into the Kingdom reveals that some of the world’s greatest IN ADDITION, striving to meet and exceed the recommendations JUBAIL ENERGY SERVICES COMPANY (JESCO) Italy economic powers have looked to Saudi Arabia for investment. e sources and criteria of these three external measures of evaluation, SAGIA infused NATIONAL PIPE COMPANY LTD. Japan of the largest FDI in ows during 2009 were the United States, with an FDI the private sector with the spirit of competition by launching strategic 12.2% 6.5% AL-SALAM AIRCRAFTS CO. LTD. USA in ow amounting to US$5.8 billion, followed by Kuwait (US$4.3 billion), the internal domestic initiatives, such as the Saudi Fast Growth 100 initiative. UAE (US$3.8 billion), France (US$2.6 billion) and Japan (US$2 billion). is national programme promotes entrepreneurship and innovation by e achievements of the 10x10 competitiveness agenda were possible recognising Saudi Arabian businesses with the fastest revenue growth 4.3% because the programme continuously benchmarked itself against three over a ve-year period. internationally recognised measures: the World Bank/International Another internal device to measure and create a competitive SINO SAUDI GAS LIMITED China ARABIAN DRILLING COMPANY France Finance Corporation Ease of Doing Business index, published in the environment for economic growth is the Saudi Arabian Responsible LUKSAR ENERGY LIMITED Russia SAUDI HALLIBURTON LOGGING CO. LTD. USA annual Doing Business report; e United Nations Conference on Competitiveness Index (SARCI). is multi-year initiative assesses ENIREPSA GAS LIMITED Italy, Spain DOWELL SCHLUMBERGER SAUDI ARABIAN Trade and Development’s measurement of FDI in ows into countries, the strength of participating organisations’ strategies, management, EMAAR -ECONOMIC CITY (KING ABDULLAH ECO. CITY) UAE SHAIBA WATER & ELECTRICITY CO. Malaysia RABIGH ARABIAN WATER & SOUTH RUB’ AL-KHALI COMPANY SRAK CO. LTD. USA published in the World Investment Report; and e World Economic engagement processes and performance systems as well as ranking the BAITEK REAL ESTATE CO. Kuwait JUBAIL WATER AND POWER CO. Bahrain ELECTRICITY CO. Japan France, Netherland STROYTRANSGAZ BRANCH Forum’s Global Business Competitiveness Index, published in the annual most socially responsible companies in Saudi Arabia. AMLAK INTERNATIONAL FOR REAL ESTAT DEVELOPMENT & FINANCE CO. / UAE JUBAIL ENERGY COMPANY USA TYHAMA POWER GENERATION CO. LTD. Bahrain SCHLUMBERGER MIDDLE EAST SA USA Global Competitiveness Report. Organisations with exceptional SARCI results receive recognition in e Doing Business report concentrates on aspects of the business the form of the King Khalid Responsible Competitiveness Award, given environment, such as procedures and regulations regarding starting to the top three most socially responsible companies on the SARCI. In businesses, employing workers and enforcing contracts. e World 2010, three outstanding companies – National Commercial Bank, Al Investment Report ranks countries according to their performance in Fanar Company and Zamil Industrial – were presented with King Khalid REFINED PETROLEUM PRODUCTS ELECTRICITY, GAS AND WATER SUPPLY FINANCE SERVICES & INSURANCE attracting FDI in ows. e Global Competitiveness Report assesses the Awards for Responsible Competitiveness to mark their achievements as CHEMICAL & PETROCHEMICAL INDUSTRIES REAL ESTATE TRADE longer-term e ects of reform on broader themes of competitiveness. responsible business leaders. OTHER INDUSTRIES CONTRACTING OTHER ACTIVITIES 01 Riyadh, Saudi Capital e Kingdom’s success would not have been possible without e winning companies earned recognition for their ambitious, MINING, OIL AND GAS TRANSPORT, STORAGE AND COMMUNICATIONS 02 Al Jubail industrial plant exceptional leadership. “ e new World Bank assessment is evidence balanced and responsible business programmes, which combine 028 029
- 16. THINK 10X10 IMAGE COURTESY OMA JOSEPH POON 01 02 01 leadership with e ective management systems. SARCI measured the A remarkable history of public partnership and internationally 01 Kingdom Centre, Riyadh 01 The proposed new international became fully operational, thanks to a shared commitment to enhancing dealing with construction permits and in November 2008, the Riyadh companies against primary drivers of responsible competitiveness: the recognised accomplishments, in conjunction with an unwavering 02 Irrigation at Al Jubail Industrial airport in Jeddah the Kingdom’s business environment and tremendous collaborative Municipality enabled builders to immediately secure temporary building state of health and safety, employee bene ts, charitable giving, resource dedication to reform, made this rapid advancement in the Kingdom’s City e orts among SAGIA, the Ministry of Commerce and Industry, the permits. Indicating an unwavering dedication to the Kingdom’s economic e ciency, product innovation, consumer education and responsible international rankings possible. In 2009, Saudi Arabia became one of the Riyadh Chamber of Commerce, the O cial Gazette, the General development, the Riyadh Municipality’s new policy reduced the overall lobbying. e National Commercial Bank was recognised for being top 20 most competitive countries for protecting investors. It strengthened Organisation of Social Insurance (GOSI) and the Department of Zakat time required to deal with construction permits from 125 days to only 94. the rst Saudi Arabian business to produce a world-class sustainability investors’ legal rights during the past year by clarifying speci c protections TOP 20 COUNTRIES FOR TOP 20 COUNTRIES IN and Income Tax (DZIT). Building on the momentum of these and other reforms in 2008, Saudi report, Zamil Industrial was noted for its environmental management a orded by the Companies Act, part of the Regulation for Companies. FDI INFLOWS DOING BUSINESS 2010 Integrating personnel from these public authorities as well as from a Arabia reached a ranking of 13th in the World Bank/IFC’s 2009 Doing programme and Al Fanar was praised for its commitment to reducing Saudi Arabia has demonstrated through its commitment to reform and notary public and a private bank, the Uni ed O ce e ciently consolidates Business report. For the fourth straight year, the Kingdom’s e orts to counterfeiting and its focus on customer satisfaction. investors’ security that there has never been a better time to invest in one COUNTRY 2009 RANK FDI INFLOWS (US$ BN) COUNTRY 2009 RANK 2008 RANK CHANGE into one entity all of the interactions and procedures necessary to start strengthen its economy were met with an enthusiastic response from U.S. 1 130 Singapore 1 1 0 e Saudi Oxford Advanced Management and Leadership Programme of the Kingdom’s many internationally competitive economic sectors. China 2 95 New Zealand 2 2 0 a business. While the previous system required entrepreneurs to spend foreign investors, as FDI in ows in 2008 increased by 57 per cent over engages public and private sector leaders in an educational environment France 3 60 Hong Kong 3 4 1 days shuttling among di erent agencies, the pioneering Uni ed O ce those in 2007 to more than US$38 billion, making Saudi Arabia the to discuss leadership challenges and design innovation strategies, the THESE LARGER ambitions were realised by enacting numerous Hong Kong 4 48 U.S. 4 3 1 allows an individual to register his company, announce its incorporation, world’s 14th-largest recipient of FDI in ows by 2009 – and eventually the United Kingdom 5 46 U.K. 5 6 1 nal component of the SARCI, which created an atmosphere where domestic measures to create an internal infrastructure that would Russian Federation 6 39 Denmark 6 5 1 open a bank account, and register with GOSI and DZIT under one roof. top 10 rankings of 2010. Saudi companies can implement the necessary changes that helped the accommodate the needs of foreign investors. Recognising the centrality Germany 7 36 Ireland 7 7 0 Entrepreneurs can now visit the Uni ed O ce one day and receive their e future goals of Saudi Arabia re ect the Kingdom’s exceptionally Kingdom to achieve its top 10 rankings. of investors’ rights to the Kingdom’s overall competitiveness, the Ministry Saudi Arabia 8 36 Canada 8 8 0 commercial registration the next, if not on that very same day. progressive and overachieving ambitions – the same competitive India 9 35 Australia 9 9 0 e extensive e orts to establish leadership that would advance their of Commerce and Industry emphasised that the current law requires Belgium 10 34 Norway 10 10 0 To meet the needs of foreign industry and construction investors, qualities that secured the nation its unparalleled upward mobility in its competitive economic agenda included the establishment of the National companies to immediately notify shareholders of a director’s con ict of Italy 11 31 Georgia 11 15 4 SAGIA enlisted the help of legal experts to analyze the construction international rankings. In the near future, the Kingdom aims to create Competitiveness Center (NCC). It monitors, assesses, and supports the interest in a transaction and to announce the incident on both its own Luxembourg 12 27 Thailand 12 13 1 permit process and potential areas for improvement. Research found that a domestic infrastructure that surpasses technological and bureaucratic Netherlands 13 27 Saudi Arabia 13 16 3 enhancement of competitiveness in Saudi Arabia. Under the direction website and that of the Tadawul (Capital Market). Brazil 14 26 Iceland 14 14 0 the licensing process costs only US$6,345 – not US$11,534 as previously e ciency, productivity and stability not only in the Middle East, but of the President of the NCC, Dr Awwad Al-Awwad, Deputy Governor Similarly, the ministry pointed out that the Companies Act empowers British Virgin Islands 15 25 Japan 15 15 0 reported: a signi cant discrepancy that would attract enthusiastic across the world. for Investment A airs at SAGIA, the NCC has successfully pursued the minority shareholders to order inspections of a company without the Ireland 16 25 Finland 16 11 5 investors. In addition to streamlining procedures, ensuring that “Our next goal is encapsulated in three numbers: 60, 24 and 7. e goal Australia 17 23 Mauritius 17 24 7 competitiveness agenda and driven reforms essential to the Kingdom’s approval of a general shareholders’ meeting. As in the case of construction Canada 18 19 Sweden 18 17 1 accurate information about doing business in Saudi Arabia is reported for our economic cities is the ultimate in competitive destinations, by growth. permit costs, clarifying existing legislation and regulation highlighted Singapore 19 17 Korea 19 23 4 internationally is crucial to developing the Kingdom’s competitiveness, providing all government services in 60 minutes, 24 hours a day, 7 days “Our progress would not be possible without the invaluable cooperation the importance of clearly promulgating laws and publicising critical Spain 20 15 Bahrain 20 18 2 as publications like Doing Business extensively impact the decisions of a week,” Governor Al-Dabbagh says. “You can’t sleep because you just and shared vision of our partners throughout the government and the information. Source: World Investment Report 20010, United Nations Conference on Source: Doing Business, World Bank/IFC, 2009−2010; NCC analysis investors and entrepreneurs internationally remembered you forgot to renew your driver’s license and it’s 2am on private sector,” Dr Al-Awwad says. In June 2008, the Uni ed O ce for commercial registration in Riyadh Trade and Development Saudi Arabia has also successfully streamlined its process for Sunday morning? Pop in, we’ll sort it out in no time.” 030 031
- 17. SAMA CEO SPEAKS TOTHINK THINKING ABOUT A UNIFIED CURRENCY DR MUHAMMAD SULAIMAN AL-JASSER, GOVERNOR OF THE SAUDI ARABIAN MONETARY XTHE ADOPTION OF A COMMON CURRENCY, WITH THEX AGENCY, SHARES HIS THOUGHTS ON THE TOPIC OF A UNIFIED CURRENCY XRESULTANT REDUCTION IN CURRENCY CONVERSION COSTSX XAND ELIMINATION OF EXCHANGE RISKS, SHOULDX WRITTEN BY DOROTHY WALDMAN XPROMOTE INTRAREGIONAL INVESTMENTS.”X HIS EXCELLENCY DR. MUHAMMED SULAIMAN AL-JASSER THE recipient of the 2010 Achievement Award of the Arab Bankers Association of North America, His Excellency Dr Muhammad lowering of transaction costs and removal of exchange rate uncertainty will contribute to raising intraregional trade. Sulaiman Al-Jasser has been the Governor of the Saudi Arabian Monetary “ e adoption of a common currency, with the resultant reduction Agency (SAMA) since February of 2009. He joined the International in currency conversion costs and elimination of exchange risks, Monetary Fund (IMF) as Economic Adviser to the Executive Director for should promote intraregional investments. It will also be conducive to Saudi Arabia in 1988, eventually becoming the Executive Director at the investment by foreigners in the region. Moreover, the introduction of a IMF, a post he held until 1995. From 1995, until his current appointment, common currency will serve as a catalyst for stronger integration and he served as Vice Governor of SAMA. deepening of nancial markets. Dr Al-Jasser has also served as a member of the Saudi Arabian “It will foster the integration of money markets across the common Negotiation Team on the accession of Saudi Arabia to the World Trade currency region and lead to a uniform short-term interest rate structure. Organisation and was honored with the King Abdulaziz Medal of the e introduction of a common currency will also be associated with First Order for his services to the Kingdom of Saudi Arabia. the pursuit of a common monetary policy and more disciplined scal With a vast experience in the realm of international monetary policy, policies by the member countries.” the current Chairman of the Gulf Cooperation Council (GCC) Monetary However, Dr Al-Jasser, who earned both his Master of Arts and PhD in Council is eminently quali ed to discuss the topic of a single currency, economics from the University of California in 1981 and 1986, respectively, which has been seriously and vigorously debated within the region during recognises that in spite of these profound bene ts, for a monetary union recent years. ough the suggested goal of nalising an agreement that to be successful, certain safeguards must be implemented. provides for a single currency to be used among the GCC states is highly “Fiscal discipline is crucial for the success of the monetary union. unlikely at this point due to stalled negotiations, Dr Al-Jasser recognises Without it, large di erences in member countries’ scal stances can many bene ts to such an economic agreement. create tensions, leading to policy disagreement and hindering other key “ e adoption of a common currency will bring a number of economic macroeconomic convergence requirements for the smooth functioning bene ts,” he states. “It will eliminate the currency conversion costs of the union, such as price and nancial stability,” he says. involved in intraregional transactions and remove the disturbances “Member countries must, therefore, be subject to scal convergence CORBIS in relative prices arising from nominal exchange rate uctuations. e criteria [budget de cit/GDP and debt/GDP] and adequate budgetary 032 033
- 18. SAMA CEO SPEAKS TO THINK 02 procedures for maintaining scal discipline. e achievement of scal cannot be ignored. ey graphically illustrate the need for safeguards and convergence should receive the highest priority before the introduction the potential need to enforce compliance to speci c criteria. of the common currency. “It is highly desirable to form monetary unions for obvious reasons. “Compliance with the scal convergence criteria is essential on a However, member countries must play by the rules and strictly adhere to sustained basis during the transition to the common currency. us, the prescribed convergence criteria to ensure their durable success,” Dr improvements related to one-o Al-Jasser says as a recommendation to measures or temporary positive terms any group of sovereign nations, including of trade shock would not be considered those of the GCC who are considering a sustainable. A monetary union uni ed currency. “Indeed, events in the ultimately needs to be complemented Eurozone point to the necessity of having by co-ordination between scal and better balance sheet management at the monetary policy.” government and banking system level.” is co-ordination between scal and e role of each nation’s central bank monetary policies, especially between would not be dramatically altered, he 01 HE Dr participating countries, may, however, says, but there may be certain restrictions. Al Jasser prove to be a signi cant hurdle as such “National central banks should continue addressing co-operation may be construed as a to carry out all standard central banking SAGIA’s requirement for each member state to 03 operations involving the common annual Global forego a certain level of autonomy and currency. However, these operations Competitiveness sovereignty. should be in line with the dictates of the monetary union central bank.” Forum in Riyadh “ e introduction of a common currency will involve a loss of With the multitudinous bene ts to countries sharing a uni ed currency, earlier this year independence in pursuing monetary and exchange rate policies by the THINK asked Dr Al-Jasser whether he thought the time had come to 02 Opened in common currency countries individually,” Dr Al-Jasser admits. “However, consider a worldwide uni ed currency. Admittedly, this is not on any 1986, the 25km this will not be of much signi cance for the GCC countries as these universal organisation’s agenda, but it is an intriguing concept to contemplate. long King Fahd countries have already been co-ordinating their monetary, nancial and “A worldwide uni ed currency could be part of one’s wish list against Causeway links other policies, and their exchange rates have remained almost unchanged a backdrop of diverse economic structures,” he says. “However, that is the Kingdom to for a prolonged period under a similar pegged exchange rate regime.” impractical as the world tried the gold standard before. Moreover, for one Bahrain Although the common bonds of the GCC countries may promote a currency to succeed, the world would need to have e ective policy co- 03 SAMA Head level of voluntary compliance not necessarily connecting the countries ordination. It will be extremely di cult to co-ordinate economic policies 01 office that use the euro, the recent di culties the Eurozone has experienced in a group as diverse as the world is.” 034 035
- 19. THINK ROUNDTABLE SINGLE MINDED “THE PROBLEM WITH MONEY IS THE NATURE OF IT BEING X X X SOVEREIGN. BECAUSE IT IS SOVEREIGN, IT THEN REQUIRES YOU X TO USE FX [FOREIGN EXCHANGE] AND TO MANAGE FX YOU X X THE GLOBAL ECONOMIC CRISIS HAS REOPENED THE DEBATE ON THE WORKABILITY HAVE TO MANAGE VOLATILITY, AND TO MANAGE VOLATILITY X X OF A COMMON CURRENCY AMONG A GROUP OF NATIONS. WRITTEN BY DOROTHY WALDMAN YOU HAVE TO USE SPECULATION. THE SINGLE, NUMBER ONE X X UNDERLYING REASON FOR THE GLOBAL ECONOMIC CRISIS WAS X X WHEN the earliest explorers began to discover new e major disadvantage is not economic, but rather political, because of XNOT THE BANKERS BUT THE FAILING MONETARY SYSTEM. THIS X peoples and products, and di erent ways of accomplishing trade, rudimentary barter transactions between individuals to exchange goods the inevitable loss of sovereignty in controlling certain aspects of monetary and scal policy within a member country. e recent economic crisis, X MONETARY SYSTEM IS NOT DESIGNED FOR GLOBAL ECONOMIES, X and services became outmoded. It meant that new ways of doing business including Greece’s highly leveraged public debt estimated at 120 per IT IS DESIGNED FOR SOVEREIGN ECONOMIES.” X X had to be established to accommodate these new realities of expanded cent of GDP, illustrates how the policies of one country within such an trade and commerce. economic union can a ect all the countries within the grouping, in spite Almost from the very beginning, governments (whether headed by of safeguards initially put into place. A public debt of this magnitude is the chief of a nomadic tribe or elected president or prime minister of a in violation of the Maastricht Treaty of 1992, which limits the amount of world power) and economists (regardless of what they were called at the debt a member country can incur to 60 per cent of GDP. time) have focused their e orts on the goal of making trade transactions e thesis of Nobel Prize-winning economist Robert Mundell, who is more e cient, resulting in the creation of money, stock exchanges and sometimes referred to as the conceptual father of the euro, states that in international arbitration. Fluctuations in values and exchange rates international nance, a government can have only two choices among between the currencies of di erent nations has thus lead to a debate three options: (1) stable exchange rates, (2) international capital mobility regarding the feasibility of the creation of a single, uni ed currency and (3) domestic economic policy autonomy (such as full employment, among various groupings of countries. interest rate policies and counter-cyclical scal spending). In the latter half of the 20th century, the possibility of creating a His vision requires sovereign states to give up domestic economic common, uni ed currency was contemplated by the European Union policy autonomy in exchange for the bene ts of cross-border capital (EU), the members of the North American Free Trade Agreement mobility and stable exchange rates. e political importance domestic (NAFTA) and the Gulf Cooperation Council (GCC). However, only the economic policy plays within a country presents stumbling blocks for euro, which was introduced on New Year’s Day 1999, has become a reality. nations negotiating an agreement regarding the establishment of a e AMERO (the suggested NAFTA currency) has slipped into obscurity common currency. and the establishment of such a currency is still under consideration within the Gulf States, with the initial goal of 2010 inauguration date DISSENSION RESULTS when the goals of di erent countries come extended, perhaps to 2013 or beyond. into con ict. For example, one country may use interest rates to fuel ere are many advantages of having a uni ed currency according to its expansion and this may cause in ation in another, or if one country Benita Ferrero-Waldner, former European Commissioner and member accumulates large debt from domestic policies. To eliminate such of the board of wind turbine manufacturer Gamesa in Spain, who is a problems, member countries must agree in advance to forego a certain passionate advocate of the common currency concept, even though she amount of self-determination and sovereignty of internal scal policy for is well aware of the controversies surrounding it. the greater good. “First of all, within the di erent countries you have one currency. You is presents the problem of the sovereignty of member nations. James have transparency, you don’t have any more di erent exchange rates, you Fierro, the founding partner of Venture Resources, an organisation don’t evaluate or devaluate with regards to another one. ere are many, involved in the identi cation, development and nancing of emerging many bene ts,” she says. growth companies says: “ e problem with money is the nature of it Among the recognised bene ts are signi cant savings in the cost being sovereign. Because it is sovereign, it then requires you to use FX of transactions within the currency zone from not having to convert [foreign exchange] and to manage FX you have to manage volatility, and currencies. is can lead to the development of wider markets for goods to manage volatility you have to use speculation. e single, number one and services; the increased ease in attracting investment and improving underlying reason for the global economic crisis was not the bankers but competitiveness on the world markets; improved opportunities for the failing monetary system. is monetary system is not designed for planning and strategy formulation; and, until recently, the anticipation global economies, it is designed for sovereign economies.” that economies as part of a massive market would not uctuate as Interestingly, he goes on to explain how this is bringing about a retro dramatically as in the past from boom to bust, therefore adding stability. trend – the return to the barter system. “We found out that most of “Di erent currencies add volatility to your investment outlook. You the biggest companies in the world are engaged in some form of non- invest from your local currency into a di erent currency,” said Jens Yahya monetary trade. ey don’t usually call it barter; they refer to it as o set Zimmermann, managing partner of New Silk Route Growth Captial, trade, counter trade, reciprocal trade or industrial participation trade,” at the Global Arab Business Meeting (GAB). By not having the risk of Fierro says. currency uctuations, investment decisions are based on anticipated “Why does GE sell a US$150 million power generating turbine to return, not exchange rates. China and take payment in coal and frozen chicken? For me this is almost 036 037
- 20. THINK OPINION ROUNDTABLE FUTURIST WRITTEN BY THEODORE J GORDON, THE WORLD FUTURE SOCIETY’S FUTURIST OF THE YEAR THE STATE OF THE FUTURE INDEX THE MOST RECENT SOFI IS BASED ON A SCENARIO OF A SERIOUS LOOKS AT FACTORS THAT CAN ALTER CONTINUING RECESSION. THE FATE OF THE WORLD AND OFFERS ALTHOUGH PAST ANALYSES HAVE SUGGESTIONS THAT MAY SECURE A SHOWN A GENERALLY FAVOURABLE EUROZONE BETTER TOMORROW. OUTLOOK, SOFI PROJECTS A COUNTRIES DECLINING LEVEL FROM 2010 More than 320 million Europeans use the euro across 22 countries: MEASURING TO 2020 AS THE WORLD WORKS THROUGH ITS FINANCIAL THE STATE DISARRAY. Andorra* Luxembourg Austria Malta e most recent SOFI is based on a scenario of a serious OF THE Belgium Monaco* continuing recession. Although past analyses have shown Cyprus Montenegro* a generally favourable outlook, the recession SOFI projects Finland Netherlands a declining level from 2010 to 2020 as the world works FUTURE France Portugal through its nancial disarray. Even so, considering future Germany San Marino* developments tends to brighten expectations, as shown by Greece Slovakia the curves in the gure below, with the upper curve rising at Ireland Slovenia a rate approaching the 1990-2005 era. 01 02 03 Italy Spain Some of the Millennium Project’s work has illustrated Kosovo* Vatican City* how the SOFI might be used to help decision makers choose unbelievable. e reason they do it is money is simply not available. When “Today we are living in a globalised world. And in a globalised world, bene cial policies by demonstrating the e ects of proposed you start digging deeper on why money is not available – it goes back to one player cannot make up against the others. I am a defender of the Estonia is expected to begin using the policies on the Index. e SOFI approach provides a the design of the monetary system. Non-monetary trade is actually an bigger groups, although you forego sovereignty in some ways. I think for euro in 2011. WILL the world of our children be better than our own? while there is no way to compute most of the linkages, the mechanism for studying the relationships among the items in extremely e cient transaction except that it has to be done in a bilateral the bene t of higher importance, the bene t of your country, yes, I would Lithuania and Latvia are expected to join We look around and see fewer wars but more terrorism; judgements of experts are used to assess the probabilities of a system – how making a single change ripples throughout a trade – there is no paper work, no FX and no mismanagement.” go for it. I would do that as an analogy to what we have been doing in the the Eurozone in the next few years and diminishing infant mortality but higher social costs as the occurrence and timing of the consequences of these “game- system, in other words, creating some positive and intended Is the concept of a common currency still relevant today, in light of EU. ere was a moment of risk, but I think we have been going ahead begin using the euro. elderly population expands. Some things are improving and changing” developments. consequences as well as unintended results. ink tanks current events? According to Ferrero-Waldner, it is. “I was ghting for with a better coordination of scal and economic policies.” European Union members not part of the others are worsening. So how can the question be answered in several countries have constructed SOFIs for their own the euro as State Secretary for Foreign A airs in Austria. Indeed I think Whether a common currency is in the best interests of an individual Eurozone and who therefore who do not responsibly? country, and one Gulf country has included the method in the uni ed currency is a very important step forward. As we have seen country can only be determined by those involved, and their willingness use the euro are the United Kingdom, Consider the stock market: some stocks are up, while others its national planning process to inform policy making and now in the crisis, there has to also be at least a coordination of economic to co-operate and co-ordinate common goals and policies for the united Denmark and Sweden. are down. e condition of the market as a whole would be Many variables appear likely to continue ■ R&D expenditures establish targets for their early warning system. policies. It’s very important,” she says. bene t. And this is as political as it is economic. *Non-EU members that officially use the euro as their currency. hard to understand without composite indexes. On the social to improve despite the pressures of the ■ Clean energy use e SOFI and the global collection of expert opinion stage, United Nations Development Programme (UNDP) recession. ■ Food availability (used in the SOFI to obtain the judgements needed for its computes the Human Development Index (HDI) to compare Variables that seem likely to continue ■ Population in countries that are free computation) are part of a larger movement in planning COMMON CURRENCY AND THE GCC social conditions among countries; the HDI is composed of improving include: ■ GDP per capita known as “collective intelligence”. measures of life expectancy, income and education. ■ Literacy rate ■ Number of refugees Collective intelligence systems seek synergies among data, All indexes have a dark side: they tend to wipe out ■ School enrollment information and human judgement, using so ware and IS A COMMON CURRENCY NECESSARY IN THE GCC AND WOULD IT di erences among groups and hide variations in the ■ Countries having or thought to have plans Some may change for the better. hardware, which provides feedback to produce (nearly) just- components of the index that lead to overall ups and downs. for nuclear weapons Variables that were worsening but may in-time knowledge for better decisions. e interaction and BE BENEFICIAL TO THE REGION? THERE ARE MANY FACETS TO CONSIDER. Also, almost all deal only with history and the present and do ■ GDP per unit of energy use improve include: feedback among these elements allow each to bene t from A SINGLE currency within the GCC and the The practicality of a common currency is Shahid Kazi, General Manager, ValuStrat 01 Benita Ferrero-Waldner not forecast. ■ Number of major armed conflicts ■ People voting in elections the other. accompanying common economic policies could dependent on co-ordinated financial integration, Consulting, at the same meeting remarked, “Going 02 Robert Mundell Ten years ago, the Millennium Project, an independent ■ Population growth ■ Forest lands A global climate change situation room has been built in bolster foreign direct investment as well as trade banking regulations and payment and settlement now to our region, the Arab world, we have to 03 James Fiero non-pro t global participatory futures research think tank, ■ Physicians ■ Prevalence of HIV Gimcheon, South Korea, focusing collective intelligence on agreements between member countries, paving the systems; transparent and improved economic question what is the basis of the issuance of our constructed the rst State of the Future Index (SOFI). In a ■ Internet users climate change. Other applications – from nations to business way for sustainable growth. A common currency decision making; and the standardisation of currencies. Let’s not talk politically, let’s just think unique global study, judgements of experts from around the ■ Infant mortality And some which worsened in the past – will bene t from this new way to synthesise information and may also be able to establish the GCC as a global economic statistics across the region. A regional logically… all the economies, all the financial world were used to choose the variables that such an index ■ Life expectancy at birth two decades seem poised to continue to judgement to help improve decision making at all levels. force alongside the dollar and the euro, becoming an monetary authority and monetary policy and experts and all the stakeholders in the system need ought to include and the relative importance of each. e ■ Women in parliaments worsen. important element in the challenges of globalisation. procedures must be established. to sit down and set what is the basis of our dirham, SOFI is based on forecasts of these variables. It answers the Variables that have been worsening and may However, a single currency project also has At the Global Arab Business Meeting in Ras Al riyal or dinar. question: is the outlook for the future improving? However, there is a risk of reversal in some continue to worsen include: Theodore J Gordon is the Senior Research Fellow of the Millennium political significance. “The formation of a GCC Khaimah, Mohammed Al- Barwani, chairman of MB “Yes there are some logistical constraints such as e SOFI calculation also considers the consequences of variables that had improved in the past. ■ Levels of corruption Project which he co-founded. He was also the founder and President monetary union would create a political and Holding, Oman, commented: “I think yes it would be the current peg to the dollar, but these issues are future events that could change the trends of each variable, Variables that had improved but may change ■ CO2 emissions of the Futures Group and a founder of the Institute for the Future. He institutional environment that would facilitate greater easier, but all GCC currencies are really dollar-based. resolvable if our intentions are right. This is my strong for example how a large-scale accident at a nuclear power direction include: ■ Unemployment is the author of numerous books and papers dealing with futures regional policy co-ordination,” points out Masood So although in different countries of the GCC, we advice to the Arab world – to have an audited basis plant might later a ect global fossil fuel consumption, or how ■ Population with access to improved ■ People killed or injured in terrorist attacks research methodology; much of his work has been associated with Ahmed, director of the Middle East and Central Asia have currencies with different names, forget about the on how these currencies are issued.” the advent of a strong global protectionist movement among water sources ■ Global surface temperature anomalies the Delphi method, Real Time Delphi, Trend Impact and Cross Impact department at the International Monetary Fund in names, underneath it is the US dollar. So in reality we exporting nations might a ect overall availability of food. ■ Poverty: people earning under ■ Total debt service Analysis. He also was Chief Engineer for the upper stage of the Washington. almost have a common currency. “ About 100 such developments have been considered and US$1.25 per day Saturn V rocket used in the Apollo programme. 038 039
- 21. WHAT DO YOU THINK WHATDO YOU THINK? ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW ?KNIHT UOY OD TAHW WHAT IS THE FUTURE OF CAPITALISM IN THE GLOBAL ECONOMY? GRADUATE AND POST-GRADUATE STUDENTS DISCUSS THE ISSUE AND PUT FORWARD THEIR IDEAS. WRITTEN BY JOANNE MOLINA “ A SPECTRE is haunting Europe – the spectre of Communism,” proclaimed Karl Marx and Friedrich Engels in e When that happens, energy is mustered to address the latter. When markets fail to deliver the outcome that societies value, we legislate, Communist Manifesto, published in 1848. eir query into how capitalism’s or we revolt; if we don’t move, we sink, and usually not all in equal parts. tenets impact labour, culture and society seems to have gone out of vogue Markets – and other putative sociological constraints – provide the conduit with the fall of the Berlin Wall and the rise of a thriving capitalist economy through which to organise economies; individuals edit them. in countries such as post-Communist Russia and China. e current staying power of capitalism resides in the latter. Globalisation, But today, as the political, cultural and social structures of nations however de ned, may produce political-economic outcomes that will a ect attempt to accommodate the later stages of advanced capitalism, it may di erent sociological groups unequally, or even ine ciently. Whether be prudent to ask if the questions posed by the spectre haunting Europe capitalism survives a rapidly transforming global economy could hinge on in the 19th century are still worth asking. the ideological latitude accorded to individuals to muster the responsiveness It is no coincidence that interdisciplinary critiques of capitalism, necessary to address crises when they emerge. We can’t predict the results. such as those in the novels of Charles Dickens, the writings of textile It bears remembering that there is not one form of capitalism, or two – and furniture designer William Morris and even the contemporary there are many. It’s something to celebrate.” controversial British gra ti artist Banksy, have appeared alongside the Heidi Hiebert, international studies, American University rise and dominance of this economic model. Heidi Hiebert earned her MA in international economics from the Graduate Given the proliferation of capitalist models in both developed Institute of International Studies in Geneva, Switzerland. Hiebert has worked for XWHEN MARKETS FAIL TO DELIVER THE OUTCOME THAT SOCIETIES X VALUE, WE LEGISLATE, OR WE REVOLT; IF WE DON’T MOVE, and developing nations, as well as contemporary concerns with the the World Economic Forum in Geneva and Decision Resources, a former affiliate psychological, economic, environmental and social implications of its of Arthur D Little Inc in Boston, Massachusetts and Berlin, Germany. X X preeminence, we asked a group of graduate and postgraduate students what they believe the future of capitalism might be. Both Karl Marx and Joseph Schumpeter, polar opposites with WE SINK, AND USUALLY NOT ALL IN EQUAL PARTS. MARKETS – X X During a discussion at a Washington think tank some years ago, regard to capitalism, agreed on one point: whether one called it ‘creative destruction’ (Schumpeter) or ‘order in disorder’ (Marx), capitalism AND OTHER PUTATIVE SOCIOLOGICAL CONSTRAINTS – PROVIDE X X a participant half-jested that on the evening of November 9, 1989, American diplomats were sipping cocktails at a villa in Wannsee, the progressed on the basis of a fundamental principle of disruption. For decades, the common view found itself rewarded by the idea that THE CONDUIT THROUGH WHICH TO ORGANISE ECONOMIES; X X southern section of Berlin. Upon returning home, they were stunned to witness crowds pouring into the streets. this disruption would provide a relatively constant rising tide, and we in our boats, both small and large, could comfortably set sail on the waves of INDIVIDUALS EDIT THEM. X X e scholar Ted Hopf has made the argument that the end of the Cold the various market indices. What changed all of that, as we all know, was War was not predicted, in part, because the question was never asked in the sort of disruption that causes people to re-evaluate the safety of their the rst place. We are, alas, hapless; or are we? ideas, leading to a new disruption where the forces of regulation are in a History happens, with its announcement typically and indi erently pitched battle with the previous forces of deregulation. eluding diplomats and scholars alike. Francis Fukyama’s famous So what does this bode for the future of a once again questionable declaration that history may have come to an end in 1989 should capitalism? Certainly not the post-capitalism of a vague Communist deliver the point home that the tempting practice of proclamations and freedom, for one aspect that is only recently coming into view for thinkers predictions is unseemly in scholarship. of the market is just what a participant in capitalism is – the rational actor We cannot know, or predict, the future of capitalism in an era of who plays a utilitarian game, or the irrational consumer who thinks only of globalisation. However, we can search our minds or look to scholars, what can be gained now without regard to the consequences of the future? whose reasoning powers may help us discern hints about its sustainability. As things stand, the latter de nes the market and its members, and no Two scholars – Albert O Hirschman and Karl Polanyi – come to mind higher principle guides their relations. Until one does, the market will be in this regard. Both theorists describe a sort of built-in resilience that guided by the principle of disruption, and the seesaw of productivity and characterises modern-day economies. disaster will mirror this.” For Hirschman, economic systems never draw from their full potential WC Swedlow, philosophy, DePaul University – it is this ‘slack’ in the system that is available and called upon when WC Swedlow received his Bachelor’s degree from the University of California, problems arise. For Polanyi, who coined the term, ‘double movement’, Santa Cruz, and recently received his PhD in philosophy from DePaul University. economic systems undergoing rapid transformations and growth are His book, Against the Personification of Democracy: A Lacanian Critique of typically characterised by lags in terms of addressing the social fallout. Political Subjectivity, was published by Continuum in 2009. 040
- 22. WHAT DO YOU THINK LEADERS e emergence of the capitalist system has revolutionised the Of course, we need to bear in mind the enormous intellectual work that ways people live, it has rede ned their wants and needs and has will be required to demonstrate the possibility and viability of such an S au d i A r a b i a radicalised the ways markets operate. Since the rst industrial revolution, idea. But I believe that such a process would encourage us to think about the successive ‘technological innovation surges’ the extent and limits of our moral and political that followed contributed in bringing an communities, and, ultimately, what distinguishes ‘‘ ‘‘ unprecedented standard of living and in forming us from others at the international level, which I today’s civilisation. think will be crucial in discovering alternatives to However, the shortfalls of capitalism of the current capitalist system.” Very valuable event for Executives turbulence and self-destruction were predicted by early economists such as Smith, Marx, and David Schwartzman, neuroscience, Oxford University Rida Kaj, CEO, , KSA 4 Interactive Works ops Schumpeter. Today, such shortfalls are evident, David Schwartzman recently completed his PhD in for example, in the widened gap between the cognitive neuroscience at Oxford Brookes University in rich and the poor, the credit crunch causing the the UK, where he also received an MA in science. recent economic meltdown and the deteriorating environment. e advent of the internet, impressive e future of capitalism should pursue technological innovations, vast nd Sustainable Development as a guiding vision to improvements to communications and tte balance the social, environmental and economic transportation infrastructures and the reduction dimensions. Especially as the ght against of trade barriers are all contributing factors to a n 5 Great Reasons To climate change gains momentum and enforces smaller, atter world. Every day the human race wit Dr. Kapla a direction away from fossil fuels and towards OIL-BASED COUNTRIES, is becoming increasingly exposed and accessible cleaner and greener energy. Oil-based countries, SUCH AS SAUDI ARABIA, to its varied constituent cultures. Capitalism has such as Saudi Arabia, have an opportunity to HAVE AN OPPORTUNITY done wonders in making this happen – it has continue to lead the world energy markets by TO CONTINUE TO LEAD improved both the standard and quality of living pursuing such a transition. THE WORLD ENERGY for many nations. Dr. Robert Kaplan – Whether it is Social Capitalism or Natural MARKETS BY PURSUING e story is not all rosy, though. Among other Capitalism, the kind of capitalism that must SUCH A TRANSITION. things, critics have accused capitalism of widening rclass be sought a er in the future is the kind which the rich-poor gap. e nancial crisis has shed LIVE and IN PERSON NOURA MANSOURI concerns the less developed world and provides much light on the capacity of unregulated human a platform where developed nations could assist in alleviating poverty, greed and its destructive consequences. Hence, along with the bene ts aste eradicating illiteracy, and developing economies. e kind that Amartya of globalisation, there are broader and deeper systemic risks that all Sen teaches on the liberty that people should have ‘to live the kind of governments involved in the free market world should proactively life they have reason to value,’ and the one which Mohammad Yunus address. M rede nes into a ‘New Kind of Capitalism’ that cares for society’s most Moving forward, I see it as necessary to allow the resilient red pressing needs. entrepreneurial human spirit to ourish but under a moderate degree of C- atu Noura Mansouri, doctoral student, Queen Mary University of London government/third-party regulation to contain this growing systemic risk. 1 Noura Mansouri is a Saudi doctoral student in managing energy technology e combination would allow capitalism to evolve in a manner that is Le 1 Fe innovation and policy for sustainable development at Queen Mary University more bene cial (than detrimental) to humanity. ve of London in the UK, where she has also completed her MBA in Technology ink of a rm as a powerful member of society. Taking into account l Exc Churchill’s observation that ‘the price of greatness is responsibility’, a lusi lan Exploitation and Management. She has received her BSc in Management v e Dinn r. Kap Information System at Dar Al Hekma College in Jeddah, Saudi Arabia, where corporation should act like a responsible member of society – one that she has also received Diplomatic Training in collaboration with The Fletcher gives back as much as it derives from its environment. I believe that er wit D School, Tufts University, USA. for capitalism to succeed the symmetry principle will be much more prominent in shaping our future and sustainability will be its main driver. As we look on with hope that the current nancial train wreck A case in point is Saudi Arabia with its God-given oil reserves. It has the is coming to an end, voices are being raised which demand huge potential to take global environmental sustainability to a whole new level. increases in the regulation and curbing of capitalist excess. Capitalism, like Almost a decade ago, Bill Clinton publicly stated that the Kingdom VISIT www.iirme.com/bscsaudi for more information any system, has remained largely untested, the test has recently come in the should not simply aim to be the oil capital of the world but the energy form of the global economic crisis and capitalism has categorically failed. capital of the world. rough conscientious capital allocation, it has the Karl Marx predicted that capitalism would ultimately su er from a capacity to utilise its oil revenues to transform the currently decentralised cycle of worsening crises, each crisis serving a temporary rejuvenating renewable energy eld into a brand new globally centralised industry – function but bringing closer the day when the system will no longer one that would defy the myth of there being mutual exclusivity between Headline Sponsor Supporting Sponsor Associate Partner Associate Partner be able to manage its internal contradictions. I believe that the era of enormous wealth and environmental sustainability. nancial liberalisation is coming to an end. Yet, unlike in the 1930s, no Jamil Fahmy, MBA candidate, The George Washington University In association with In association with ES Consulting credible alternative to this system exists on the horizon. Jamil Fahmy is a 2012 MBA candidate at the George Washington University So where do we go from here? Perhaps one way to address the structural School of Business with a vested interest in international finance and challenges the world is encountering in the elds of international nance, sustainability. He is from Jeddah, Saudi Arabia. He has been working on the Co-Sponsors Sponsors Exhibitor Media Partners Event Partner Organised By economics, development, and the environment is to explore the feasibility structured derivatives desk of a prominent regional commercial bank based in of public policy at the global level? Saudi Arabia. 042
- 23. CEO INDUSTRY INTERVIEW KLAUS KLEINFELD, CEO OF ALCOA, THE WORLD’S THIRD LARGEST PRODUCER OF ALUMINUM, PUTS A LOT OF STOCK IN AIDING THE COMMUNITIES HIS MULTINATIONAL COMPANY HAS OPERATIONS IN – AND IS PROUD THAT HIS WORKFORCE FEELS THE SAME WAY. WRITTEN BY JOANNE MOLINA PUTTING PEOPLE FIRST “ WE have an obligation to win the license to operate in the communities where we do business,” declares Klaus Kleinfeld, CEO of New York-based Alcoa, the world’s leading producer of primary aluminum, fabricated aluminum and alumina. Employing around 59,000 people in 31 countries across the world, it has been named the most admired metal company for 27 consecutive years by Fortune magazine, whose “admired” ranking is the authoritative index of corporate reputation in the United States. Kleinfeld’s nuanced philosophy of leadership and management bring keen insight into the needs of the international marketplace, securing Alcoa’s future success. “ e role and task of the CEO will probably always remain the same and that is to lead people,” he says. Kleinfeld acknowledges the importance of not only hiring the best employees but also making sure that everyone is aligned and can work together as a team. “Nobody is perfect but a team can be,” he re ects. “Motivating a team is about showing people that they can achieve what they believed to be impossible.” His belief in the power of harnessing the talent of individual players to forge a dynamic team has created a progressive atmosphere that extends to every facet of the company’s global presence. Alcoa has produced solutions to environmental issues, and helped create and sustain important social and quality of life-based projects in each community in which they do business. One of Alcoa’s premiere forward-looking projects has been its 044 045
- 24. INTERVIEW 01 02 nancing that represents the other 20 percent. Alcoa and each of the the construction industry. “It will be one of the most technically advanced partners will invest $900 million over a four-year period and will be mills in the world,” Kleinfeld says. responsible for its pro rata share of the project nancing, in addition to e natural, environmentally friendly quality of aluminum has also speci c completion commitments. allowed the company to rapidly diversify its products and services while Alcoa will provide its extensive industry knowledge, management maintaining its position as an environmental leader. “We are blessed expertise and support during the design, construction and operation of because aluminum is a miracle metal,” Kleinfeld says. 01 the mine, re nery, smelter and rolling mill. It will also arrange the supply Approximately 75 per cent of all of the aluminum ever produced of alumina feedstock to the smelter from outside the Kingdom until the since 1888 is still in active use today. For the ninth consecutive year, project re nery comes on stream. Alcoa and Ma’aden will work with Alcoa (NYSE:AA) has been selected as a component of the Dow Jones collaboration with Ma’aden, the Saudi Arabian Mining Company, to aluminum smelter and rolling mill for the Ma’aden Alcoa joint venture leading international and local rms on the design and construction of the Sustainability Indexes (DJSI). Alcoa was named to both the World and develop a fully integrated, world-class aluminum industry in the Kingdom. aluminium industry, it is also the site for Ma’aden Phosphate Company’s complex, including Wagsta , which will supply the joint venture’s vertical the North American Indexes. e Dow Jones Sustainability World Index “I am fortunate to have been able to work with His Royal Highness Prince integrated chemical and fertiliser facility, which is due to begin operation direct chill casting complex with t-ingot, rolling ingot and extrusion (DJSI World) comprises the leading companies in terms of sustainability Faisal bin Turki Al Saud and SAGIA. ey have been uncompromising in in 2010. billet casting equipment. e contract includes capital equipment and around the world, and captures the top 10 per cent based on long-term their support and determination to make the Ma’aden Alcoa aluminium At the ground breaking ceremony in June, Abdullah Busfar, Ma’aden’s technology to produce aluminum rolling ingot and extrusion billet at economic, environmental and social criteria out of the biggest 2,500 joint venture a success,” Kleinfeld says. Vice-President (Aluminium, Strategic Business Unit) and Project the casting complex, currently under construction and scheduled to start companies worldwide. e Dow Jones Sustainability North America Established as a Saudi Arabian joint stock company in March 1997, Management said: “ e team has worked very hard over a long period production in 2013. Index (DJSI North America) captures the leading 20 per cent in terms of Ma’aden facilitates the development of Saudi Arabia’s non-petroleum of time to bring the project this far, and it is from today that we actually sustainability out of the largest 600 North American companies. mineral resources and diversi es the Kingdom’s economy away from begin to see it on the ground in Ras az Zawr. It is a landmark day not only INITIALLY, the joint venture will develop a fully integrated industrial According to the company’s 2009 sustainability report, Alcoa’s advances petroleum and petrochemical sectors. In July 2008, Ma’aden o ered 50 for Ma’aden and Alcoa but also for the aluminium industry in the Gulf complex, including a bauxite mine with an initial capacity of 4,000,000 included performing life cycle assessments of aluminum-containing per cent of the company’s shares for subscription in a successful $2.46 and for the diversi cation of Saudi industry.” metric tonnes per year (mtpy), an alumina re nery with an initial products, including computer laptops, automotive space frames, truck/ billion initial public o ering (IPO). Capital investment will be approximately $1.8 billion, subject to the capacity of 1.8 million mtpy, an aluminum smelter with an initial trailers, city buses, and aluminum bottles; conducting third-party, Located at the port city of Ras az Zawr, the location for Ma’aden’s completion of detailed feasibility studies and environmental impact capacity of ingot, slab and billet of 740,000 mtpy, and a rolling mill with peer-reviewed life cycle assessments of aluminum beverage containers minerals industry complex, a 77km/sq site, 90km north of Al Jubail on assessments. Ma’aden will own 60 per cent of the joint venture; Alcoa will 01 Reforestation, Western Australia initial hot-mill capacity of between 250,000 and 460,000 mtpy. e mill and automotive parts in association with the European Aluminium the Arabian Gulf coast, will become the world’s largest fully integrated control the remaining 40 per cent o through an investment partnership 01 Barra Grande hydropower plant 02 Alcoa’s sustainable development, will focus initially on the production of sheet, end and tab stock for the Association, U.S. Aluminum Association and International Aluminium aluminum complex. In addition to housing the alumina re nery, in which it will own 20 per cent, and its partners will participate through in Brazil Huntley Australia manufacture of aluminum cans, and potentially other products to serve Institute; continuing reductions in absolute greenhouse gas emissions 046 047
- 25. INTERVIEW 02 01 03 in 2009 that resulted in a 44 per cent reduction from 1990 levels; and NGO, said: “Alcoa is raising the bar quite high and is creating hopefully processing improvements in their Global Primary Products group, which a new model of how mining projects can be established in Amazonia reduced direct greenhouse gas emissions by more than one million without creating new waves of deforestation in the region.” tonnes over 2008. In the form of $18 million in investments, which Alcoa has committed Alcoa is also the rst aluminum company to receive a Cradle to Cradle to as its operating licence, the company will help provide much needed certi cation from MBDC (McDonough Braungart Design Chemistry), infrastructure to the Juruti region. In addition, Alcoa will invest an a global sustainability consulting and product certi cation rm, when additional $30m in voluntary investments covering projects that include it was awarded silver certi cation for its primary aluminum. Cradle the creation of a new regional hospital in Juruti as well as the expansion to Cradle certi cation is an independent environmental certi cation of a preexisting hospital (prior to this, many people in Juruti had to travel process for materials and products that assesses the total impact of a by boat for 12 hours to get medical attention). product on human health and the environment. In addition, the investments will foster the creation of two new technical “Cradle to Cradle certi cation is landmark recognition of the uniquely schools to teach residents skills to improve their career opportunities for sustainable characteristics of Alcoa aluminum,” says Kevin Anton, generations to come, and the creation of three deep-water wells for fresh chief sustainability o cer for Alcoa. “ rough this certi cation, Alcoa water needs. ese wells provide cleaner water to the city residents and can assure its customers the company is continuing to improve the will likely improve overall health conditions in the city. sustainability of our metal from initial production through use and then Kleinfeld’s commitment to humanitarian goals is also personal and recycling.” he is proud that his employees feel the same way. In April 2010, he Kleinfeld lauds Alcoa’s e orts surrounding the development of their received the 2010 Ripples of Hope Award from City Year New York for mine in the Juriti region of Brazil, a project striving to meet and exceed his personal commitment. “ is award from City Year belongs to all of standards that will allow both the environment and the community in the the Alcoa employees who volunteer alongside City Year Corps members area to thrive. In partnership with the municipal administration of Juruti at PS 48 and at e Point Community Center in the South Bronx,” said and in agreement with the community, Alcoa launched the positive agenda. Kleinfeld, humbly acknowledging his team. With investments of $50 million the package of actions includes rural Approximately 90 per cent of Alcoa’s worldwide operating locations and urban infrastructure, health, education, culture, the environment, now have community programmes, and Alcoa and Alcoa Foundation public security and social assistance. ese are voluntary actions on the invested more than $34 million in the communities in which the company part of the company that have been agreed to directly by the community operates worldwide. following public hearings that resulted in the licence being granted for “Volunteering is a necessary part of creating a vibrant and dynamic 01 Can reclamation, Tennessee USA setting up the Juruti mine. corporate environment,” Kleinfeld says. “You see the many dimensions 02 Fabricated aluminum products, One of the greatest results of these initiatives has been creating a of the people you work with and uncover aspects you hadn’t previously Samara Russia foundation for agency on behalf of the Juriti community. Its e orts have been able to see. Ultimately, its a vital bonding experience for personal 03 Bauxite processing Juruti mine, been so extensive that Conservation International, a leading sustainability and collective growth.” Brazil 048
- 26. HEALTH NOT JUST A FEMALE PROBLEM Often wrongly considered a disease that just afflicts older women, breast cancer does not discriminate according to gender or age. Although it is about 100 times less THE FIGHT common among men than women and its incidence in relation to the population has remained stable in the past 30 years, approximately 2,000 men will be diagnosed with breast cancer this year in AGAINST the United States alone, about one per cent of total cases, and close to 400 men will die from it. The prognosis for men has generally been considered worse than that for women, but BREAST CANCER that is largely due to the fact men tend to get a diagnosis at a later stage as they often do not believe they can get it. “Actually [breast cancer] is easier to find in men,” says Dr Stanley Waintraub, of the John Theurer Cancer Center in New Jersey. “Men may ignore symptoms such as lumps, pain in the breast or discharge from the ACROSS THE WORLD, CASES OF BREAST CANCER ARE INCREASING AS MORE WOMEN ARE nipples.” DIAGNOSED, BUT A RANGE OF INNOVATIVE PROGRAMMES ARE SHOWING THAT A POSITIVE Recent research published online in the PROGNOSIS IS STILL POSSIBLE. Journal of Medical Genetics has revealed that men, like women, who carry the BRCA2 genetic mutation, have a higher risk of WRITTEN BY DOROTHY WALDMAN contracting the disease – 7.1 per cent by the age of 70 and 8.6 per cent by the age of 80 – so these men should be particularly IN 2010, over one million women will be diagnosed with breast cancer and about half a million will die from the cent in areas where adequate services are not available – in high income countries fatality rates are less than half that. vigilant about early detection. Richard Roundtree, known for his role as a maverick, macho private investigator in the COST OF NEW CASES OF disease. Once considered an a iction most likely to strike a uent white In emerging economies, breast cancer is a relatively new concern for BREAST CANCER BY COUNTRY film Shaft, thought doctors were questioning women in industrialised areas of North America and Western Europe, both women and medical professionals. Currently, the average woman his masculinity when he was diagnosed in breast cancer is on the rise throughout the world, representing one in 10 diagnosed in Kenya can only wait for her death; in South Africa only Total Cost (US$) 1993. “Every opportunity I get,” he says, of all new cancers diagnosed and almost one in four cancers in women ve per cent of cancers are caught in the early stages when they are most Australia 377,837,261 “I am very vocal about the fact that breast worldwide. curable; and Pune in India has only one comprehensive breast cancer Bangladesh 3,422,972 cancer is not gender specific.” Today, nearly four million women are living with breast cancer and facility for the 3.5 million women it is supposed to serve, resulting in half China 176,821,281 Former Kiss drummer Peter Criss, known many of these live in highly developed countries. However, by 2020, the of all the women going entirely without treatment. France 1,535,292,360 as Catman, was treated for the disease in World Health Organisation anticipates a 50 per cent increase in cancer Mammography machines, the single most important tool in early Germany 2,089,246,140 2008 and has some sage advice for men and 70 per cent of all new breast cancer cases worldwide will be in detection, are available in the Ukraine, but a shortage of lm requires Guatemala 2,421,188 who discover a lump in their breast. “Don’t developing countries. that doctors choose between taking the recommended two-view image of India 48,796,462 sit around playing Mr. Tough Guy. Don’t In countries with access to state-of-the-art diagnosis, survival rates are a patient’s breasts and taking a one-view image of twice as many women. Netherlands 404,546,601 say: ‘It’s going to go away.’ It might not and beyond 80 per cent and closer to 90 per cent in some areas. In the United In Venezuela, some hospitals have the equipment for large biopsies, a Saudi Arabia 16,924,099 you might not see life anymore and how States, where one out of eight women will be diagnosed with breast sophisticated procedure for early detection, but the cost of actually using United States 16,097,364,800 beautiful it is,” he says. cancer during her lifetime, an estimated US$68.1 billion is spent each it presents a prohibitive challenge, with one hospital reporting that the UAE 4,735,500 This is a message that the John W Nick year to diagnose and treat the disease. procedure has not been preformed in three years. Unsurprisingly, more Foundation, which provides support and e situation is di erent in much of the rest of the world. e number than 70 per cent of all cancer deaths occur in countries where resources information on male breast cancer, hopes of patients diagnosed with curable breast cancer drops to about 50 per for diagnoses and treatment are limited or non-existent. men take heed of. 050 051
- 27. HEALTH NO AGE LIMIT IN THE PINK A record-breaking attempt at forming the largest female human chain Contrary to popular thought, it is not just marked Saudi Arabias Zahra Breast Cancer Associations contribution to older women who need to worry about the Kingdoms breast cancer awareness campaign in October 2010. older cancer, young girls are at risk, too. At the time of going to press, thousands had registered and the A four-year-old girl, probably the youngest Zahra Breast Cancer case of secretory carcinoma of the breast Association was on and one of only a few children around track to making history. the world to suffer from a malignant breast The attendance of tumour prior to puberty, was the youngest representatives from the breast cancer survivor to participate in Guinness World Book of Toronto’s Weekend to End Women’s Records was confirmed, Cancers in Cambridge, Ontario in in witnessing and verifying September. Last year, a 10-year-old girl in the formation of the worlds California was also diagnosed with breast largest female human pink ribbon chain. cancer. Both of these brave youngsters Awareness is the first step in curing breast cancer, a disease which is underwent mastectomies. the leading cause of cancer deaths amongst women in Saudi Arabia. Thankfully such cases is extremely rare According to the latest Saudi Cancer Registry report, more than and the disease is treatable. 10,000 cases of cancer were treated here in one year alone, with Less rare is breast cancer in young breast cancer accounting for 24 percent of treated cancer cases. women. In the 15 to 39-year-old age group, Breast cancer is a huge challenge for women in Saudi Arabia breast cancer accounts for about 25 per - awareness and education about this disease is a key element in cent of all cancers in females, which rises curbing this challenge, said HRH Reema bin Bandar bin Sultan, who to 39 per cent in the 35 to 39-year-old heads up the important initiative. I am convinced we can help reduce age group. One in 20 women with breast the spread of breast cancer in Saudi Arabia with early detection and cancer are diagnosed before the age of 40. strong awareness campaigns. Typically, early detection is less likely HRH Reema explained the idea for the record attempt, which is part in younger women and their cancers are of their campaign, A Womans Stand, is all about creating a unified more aggressive than those found in older stand against breast cancer. I have had family members and friends 01 02 women, resulting in lower survival rates. diagnosed with breast cancer, and this strengthened my determination to become an agent of change and break this vicious cycle, she said, adding that she first learned of the formation of the Zahra Breast Although the costs in terms of human su ering are incalculable, Brazil and 20 per cent in China could be preventable through lifestyle Cancer Association, the sponsor of this event, on the same evening as measurable costs for medical expenses including hospital stays, surgery, changes such as a reduction in alcohol intake, an increase in physical a close friends breast cancer diagnosis. GLOBAL INVESTMENT IN chemotherapy and radiation, associated non-medical expenses such as activity and maintaining a healthy weight. CANCER RESEARCH, 2009 Dr Modia Batterjee, spokesperson for the campaign, said that travel expenses for treatment, specialized equipment and home services, Interestingly, research by Cancer Research UK indicates that women although breaking the world record would be an important feat, the and loss of productivity are soaring as the number of cases diagnosed who migrate from low to high-risk countries typically also experience awareness it has already built is key: The most important result is escalates. increases in occurrence, suggesting a strong e ect for lifestyle or 19,238 educating people and helping to decrease the occurrences of breast A report by the American Cancer Society found that cancer cost the environmental factors. e roll of oestrogen in breast cancer has raised 4,244 cancer in the Kingdom. world US$896 billion in 2008, about 1.5 per cent of the world’s entire the possibility that certain environmental contaminants, including PCBs GOVERNMENT The female chain will be a symbol of womens strength, commitment gross domestic product. New breast cancer cases alone account for and pesticides such as DDT, that mimic the female hormone, may well 6,461 and support for one another. By attempting to break the world record US$28 billion in 2009, US$13 billion in medical costs, US$8 billion in be involved. Cases of breast cancer amongst the residents of Seveso in for the largest human awareness ribbon, we wanted to gain huge 1,360 non-medical costs and productivity losses of around US$700 million. Italy who were exposed to a 1976 industrial accident and people living public exposure and show people that when you stand together, great e best possible way to deal with the costs of cancer “is not to have in Chapaevsk in Russia, who su ered contamination from a nearby CHARITABLE 03 things can happen, she said. it in the rst place”, says Dr Robert C Young, former president of the chemical plant also suggest a link between breast cancer and dioxins. 625 HRH Reema added: When people find out what we are doing and American Cancer Society. “So the focus on prevention makes great However, until breast cancer is eliminated as a threat, early detection 1,205 Meanwhile, innovative schemes are necessary to increase both why, they automatically ask us: How can we help? What can we do? sense.” In 2009, global investment in cancer research was around US$19 is the best way to control costs with the best possible outcomes. A report awareness and positive outcomes. One such scheme is currently being The support from the Saudi community has been great and we really HEALTHCARE & UNIVERSITY SYSTEMS billion. Organisations such as the Susan B Komen Foundation, which by the US Preventive Services Task Force announced a decline in cancer planned by the Africa Oxford Cancer Foundation to distribute Tamoxifen foresee the event as being a great success. 149 funds breast cancer research, and the Zahra Breast Cancer Association death rates in the US by almost two per cent a year between 2001 and 2006, to selected women who discovered lumps at breast-examination clinics In addition to this highly visible event, the Zahra Breast Cancer 1,870 bring awareness to combat breast cancer through education and support. which some consider the positive result of early detection as well as other held in village churches as a precautionary measure, in anticipation of Association also organises numerous functions to educate and Although a genetic predisposition to breast cancer is evident, research factors. Interestingly, when the UK introduced its national screening 3,322 stabilising or reducing the tumour burden in up to 50 per cent of the create awareness about this disease, including educational lectures, Funding indicates that as many as half of all breast cancers occur in women who programme in 1988, there was a marked increase in the incidence of (US$m) patients, greatly reducing the overall costs of treating the disease. workshops and printed materials for women, along with scientific 0 5,000 10,000 15,000 20,000 have no known speci c risk factors, indicating that other factors must be breast cancer as previously undiagnosed cases were detected. 01 Acuson X300 ultrasound, Siemens In spite of the huge variations in detection and treatment, there is training programmes for doctors and other health professionals. TOTAL PHARMA INDUSTRY (TOP 24 COMPANIES) involved. Other than gender, age (81 per cent of cases occur in women Although there is a tremendous need to detect and treat breast cancer at US EU REST OF WORLD 02 Dr. Modi Batterjee, campaign still room for optimism. e increasing visibility of breast cancer due There are a number of other schemes in the Kingdom also seeking aged 50 and over, with nearly half of all cases diagnosed in the 50-69 the earliest stage, these needs have to be balanced by the ability to provide spokesperson and founding member to education and fund-raising initiatives has helped remove the stigma to raise awareness of breast cancer. These include an official breast age group.), lack of or delayed childbearing and higher hormone levels these costly technologies and services, requiring innovative problem of Al Bidayah Center and resulting isolation from the disease while enabling research that is cancer awareness website, an early detection program and the Zahra appear to correlate to incidence. solving. As imaging and other diagnostic tools are made available 02 New technologies from Siemens developing cures and discovering causes and means of prevention. Touch boutique, which provides patients with prostheses, wigs and A 2009 World Cancer Research Fund report estimated that 38 per cent in underserved areas and as the world’s population ages, a backlog of help in the early detection of breast In a perfect world, there would be a cure, but until that time comes, other specialised items. of breast cancer cases in the US, 42 per cent in the UK, 28 per cent in undetected cancers may be revealed. cancer there is still much each of us can do to increase the odds for survival. 052 053
- 28. CORPORATE RESPONSIBILITY LIVING in a healthy, sustainable environment should not be a luxury. As the queries and analyses of the BP disaster in the 01 Gulf of Mexico continue, the global community has a renewed interest in questioning where a business’s responsibilities lie in relation to complex and interconnecting environment concerns. e link between curbing factory emissions, utilising alternative energy sources, mandating recyclable materials and maintaining stringent policies against deforestation and the productive use of agricultural resources are inexorably bound to addressing world hunger, poverty, health and economic stability and growth. Given the elaborate structure of investment, as well as a legal and nancial commitment to their stockholders, businesses must make di cult decisions to maintain a positive balance sheet and address increasing ecological concerns. Public outcry and the actions of international institutions that monitor the ow and distribution of global capital and investment, such as the World Bank, are necessitating the creation of new methods to ensure both corporate and environmental stability. In September, the World Bank announced the appointment of 01 Daniel Kammen, Professor in the professor of energy Daniel M Kammen of the University of California, Energy and Resources Group Berkeley, as the organisation’s Chief Technical Specialist for Renewable in its strategy, a company can even become an engine of growth. ere is 02 Philips Master LED Green Products Energy and Energy E ciency. is new position was created to provide evidence of this with the Philips Green products proposition, currently strategic leadership on policy, technical and operational fronts in order to contributing to more than 30 per cent of Philips’ sales. enhance the impact of the Bank’s renewable energy and energy e ciency To further address these challenges and the timely guidelines of the UN, “REAL PROGRESS activities, as well as to expand its role as an enabler of related global Philips launched its EcoVision5 programme, with the following three dialogue. main targets for 2015: rst, to bring care to 500 million people; second, CAN ONLY BE However, some of the world’s top global corporations are also leading to improve the energy e ciency of their overall portfolio by 50 per cent; MADE IF ALL the eld with conscious and determined e orts to adopt technological and third, to double the amount of recycled materials in its products, as and industrial standards and practices that accommodate or even exceed well as doubling the collection and recycling of Philips products. STAKEHOLDERS the bars set by third-party environmental analysts. De Bruin also explains the recent re-evaluation of how companies are TAKE UP THEIR choosing to tackle environmental issues. “ e challenges for combating ENERGY environmental concerns in general over the last decades – not speci c RESPONSIBILITY.” “One of the biggest challenges for our society and, thus, for our industry, to our industry or to Philips – were related to the erroneous perception is to improve the quality of people’s lives – particularly in new and that focusing on nding environmental solutions costs money, at the THE BIGGER emerging markets – while managing the resulting ecological footprint,” detriment of economic bene ts,” he says. says Henk de Bruin, head of the corporate sustainability o ce for Philips. In the marketplace, being publicly amenable to these concerns was e Netherlands-based Philips is a diversi ed health and well-being generally frowned upon because it was perceived as catering to needs company, a world leader in healthcare, lifestyle and lighting. other than business. “Businesses that paid attention to the impact of De Bruin cites the United Nations’ Millennium Development their activities on the environment and on society were pegged as ‘so ’. Goals as being a crucial guidepost for the company’s environmental Fortunately, this perception issue is shi ing. Focusing on environmental PICTURE advances. “With only ve years le until the 2015 deadline to achieve and social issues, or what we simply call sustainability, now is becoming the Millennium Development Goals, Philips strongly supports this call to a mainstream business consideration and an expectation from customers action. We believe that a ordable, accessible and accountable healthcare and stakeholders,” de Bruin says. solutions with a light ecological footprint are essential contributions to However, according to de Bruin, responsibility for the environment reaching these UN goals,” he says. is “light ecological footprint” is lies not just with international agencies or corporate initiatives. “Real another industry challenge requiring constant improvement, and energy progress can only be made if all stakeholders take up their responsibility,” and materials are key elements in this process. he suggests. Philips’ philosophy of environmental responsibility has evolved over is includes a combination of responsible agents: business, non- MULTINATIONAL BUSINESSES ARE, OF COURSE, ALWAYS LOOKING TO TURN A the past few decades and broadened its scope, beginning with energy, government organisations and consumers. “Governments can facilitate GETTY/GALLO IMAGES PROFIT, BUT A GROWING UNDERSTANDING OF ENVIRONMENTALLY SOUND waste, water and emission management in manufacturing, followed by a level playing eld for business and citizens. Non-governmental PRACTICES BY SOME COMPANIES IS HELPING TO PUSH THEIR INDUSTRIES IN A green product development, supply chain management and collection organisations can in uence governments, business and the public at large. GETTY/GALLO IMAGES and recycling. Provided this is properly and consistently managed by Customers can take these various forms of information into account in MORE SUSTAINABLE AND SOCIALLY RESPONSIBLE DIRECTION. 02 dealing with reputational risks and business opportunities in a balanced their purchasing behaviour and business can provide solutions for their way, there is no principal con ict attending environmental needs and the needs – closely following trends and carrying out market research by WRITTEN BY JOANNE MOLINA needs of a business. By embedding environmental and social challenges taking environmental aspects into account,” de Bruin says. 054 055
- 29. CORPORATE RESPONSIBILITY “THE MOREINTENSIFIED DAIRYING with on-farm sustainability advice. It also funds research across a broad range of areas, including forage research to produce grasses that support higher BECOMES, THE MORE CARE WE milk production per hectare, genetic research to improve the productivity of NEED TO TAKE TO MITIGATE THE herds and research to develop science-based tools to reduce nutrient losses. “ e more intensi ed dairying becomes, the more care we need to RISK OF ENVIRONMENTAL IMPACTS. take to mitigate the risk of environmental impacts,” Ferrier says. “New NEW ZEALANDERS ARE VERY Zealanders are very environmentally aware and while they are very conscious of Fonterra’s major role in the economy, they are not prepared ENVIRONMENTALLY AWARE AND to see environmental values traded o for economic gains.” WHILE THEY ARE VERY CONSCIOUS Climate change is another challenge Fonterra is prepared to tackle. “We have the challenge of growing production to feed a rapidly growing OF FONTERRA’S MAJOR ROLE IN world population without exacerbating climate change. Globally, dairy THE ECONOMY, THEY ARE NOT emissions account for 2.7 per cent of total greenhouse gas emissions. at’s relatively low, but nonetheless, the dairy sector recognises that PREPARED TO SEE ENVIRONMENTAL improving our carbon footprint is a key element of sustainable milk VALUES TRADED OFF FOR production,” Ferrier says. For Fonterra, this is a very topical issue given New Zealand’s response to ECONOMIC GAINS.” climate change is the introduction this year of an Emissions Trading Scheme. From 2015, this will include agricultural emissions – it is the only country in the world currently making this commitment and it is a signi cant one given our greenhouse gas pro le, where agriculture accounts for 47 per cent of total emissions (with dairying 19 per cent of those). Fonterra’s response has been to take the lead by de nitively determining the carbon footprint of its major export products. is has enabled it to identify where emissions reductions e orts should be directed – which is primarily on farms, where 85 per cent of emissions in their carbon footprint occur. It is also driving down emissions in the business. Its energy reduction project, one of the largest energy e ciency programmes in New Zealand, saved 320,000 tonnes of carbon dioxide, equivalent “GLOBALLY, WE relative to 2003 levels, last year. “As a cooperative, our farmers are our stockholders as well as supplying MUST ACT ON the raw ingredients for our global production company. We do not view 01 THREE FRONTS: WE the environment as something separate from our business, it is our business and because of this innate connection to the land environmental MUST CLEAN UP responsibility is at the core of everything we do,” Ferrier says. 02 PASTURES NEW ENVIRONMENTAL Environmental responsibility for Fonterra is also a form of civic “Farming, by its very nature, relies on the environment for its survival ingredients and it sells to 140 countries – every continent in the world 01 Andrew Ferrier, CEO of Fonterra responsibility. “ is responsibility is shared throughout the organization, and while practices have certainly changed over time there has always except Antarctica. One third of its revenue is consumer products, which 02 Marco Tronchetti Provera, DAMAGE CREATED from the grassroots farmers to the top management team and we take MOTORING ON been a fundamental understanding that we have to treat the ecosystems have leading positions in consumer dairy in Australia, Asia, the Middle chairman of Pirelli IN THE PAST, WE our leadership position very seriously. Being the largest and most “I believe it has become clear that all of us on the planet have a great that support our industry with the greatest of care,” says Andrew Ferrier, East and Latin America. visible company in a relatively small country like New Zealand puts us responsibility toward future generations, one that cannot be put o CEO of New Zealand-based company Fonterra. “Whichever way you look at our business, there is one inescapable MUST LIVE AND constantly under the spotlight and New Zealanders rightly demand the until some later date when it is more convenient. People currently in Fonterra, New Zealand’s largest company with an excess of $11.7 billion conclusion: we have to be sustainable, both environmentally and MANUFACTURE IN highest standards of environmental custodianship, regardless of how leadership positions must take this responsibility especially seriously,” in revenue, is a cooperative, wholly owned by farmer shareholders. In economically. To produce in-demand dairy products, farmers need to be many export dollars we bring in the door,” he asserts. argues Marco Tronchetti Provera, chairman of the Milan-based Pirelli, a country that exports 95 per cent of the milk it produces, Fonterra is con dent of making a return, but they also need to be con dent their land A SUSTAINABLE But there are still incredible challenges that Fonterra will have to a company active in the tyre and real estate sector among others. It is a responsible for 95 per cent of all national dairy exports and accounts for can sustain higher production, so our relationship with the environment is WAY, LIMITING face in the future. “ e greatest challenge between agriculture and the premier supplier to the automotive industry, which pollutes heavily, and a quarter of New Zealand’s total exports. Its the biggest supplier to the something we take very seriously. Sustainable co-operative performance environment is going to be feeding a global population that is forecast to bears responsibility for investment in the future. globally traded market for dairy, exporting more than two million tonnes is a major component of our growth strategy,” Ferrier says. NEW DAMAGE TO reach seven billion next year and nine billion by 2050,” Ferrier reveals. “Globally, we must act on three fronts: we must clean up environmental as of July 2010, and it is the largest dairy processor in the world. New Zealand’s natural geography allows dairying to be increasingly THE ENVIRONMENT, “ at’s an extra two billion people to nd food, water and shelter for over damage created in the past, we must live and manufacture in a sustainable “We have a major role in meeting dairy demand globally and there is regarded as the most pro table use of agricultural land. Unlike many the next 40 years in a world that is already pushing past the limits of what way, limiting new damage to the environment, and we must invest in no sign of that demand abating. e global population has quadrupled parts of the world, where cows are housed indoors and fed grain, the AND WE MUST we can safely sustain.” innovation to discover new paths for a sustainable future,” Provera explains. over the past 100 years. e World Health Organisation is forecasting country’s herds are predominantly grass fed from farm pastures. is is INVEST IN It’s Fonterra’s view that in order to feed the burgeoning global At Pirelli, the philosophy is for the company to take responsibility for that the demand for food will double by 2050 – just 40 years away. Dairy viewed by Fonterra as a major competitive advantage, both in terms of population in the years to come, trade barriers need to come down and itself on each front, along with its stakeholders. “With consumers, we is nutrient dense, so it will have a critical role to play in nourishing the production costs and the value consumers place on products from “clean, INNOVATION TO subsidies be removed so that ine ciencies in the agricultural industry are must educate them and o er them environmentally friendly products world’s growing population, but this cannot be done at an unacceptable green” New Zealand – but it does impose environmental challenges. DISCOVER NEW worked out of the system. e company has built a substantial knowledge at an a ordable price. We have an obligation to our stockholders to do environmental cost,” Ferrier explains. On farms, for example, the focus is on practical steps farmers can take base on how to do this and is keen to share it with the world. It is working business correctly and for a pro t, and our approach to this is to focus on In a typical year, Fonterra collects approximately 20 billion litres of to protect water quality, such as excluding stock from waterways, riparian PATHS FOR A with other producers around the globe to help bring nutrition to people quality and innovation,” Provera says. milk – around 14 billion litres in New Zealand. It processes products planting, nutrient budgets which minimise fertilizer use and adopting SUSTAINABLE for the least economic and environmental cost. “Quite simply, our future “With our suppliers, we are very selective and we require them to at roughly 28 sites in New Zealand and have another 60 sites around best-practice irrigation techniques in full compliance with management survival depends on it and that’s a challenge we think is worth putting be sustainable, too. With our local stakeholders, we are attentive to the the world, 10 of them in Australia. Two-thirds of its revenue is dairy regulations. Fonterra spends around $5 million a year supporting farmers FUTURE.” our good name on,” Ferrier says. communities where we are based and fund hospitals, universities, social 056 057
- 30. CORPORATE RESPONSIBILITY welfare andenvironmental projects. And, of course, we are attentive industry. “ at is where governments come in,” Provera says. “For to the health, safety and well-being of our own workers. We believe example, as long as petroleum-based energy is cheaper than solar “THE CONSUMER responsibility for the environment lies with everyone and we begin at or wind power, companies trying to sell alternative energy will not IS NOT ALWAYS SO home.” succeed. Governments need to support the research needed to make Pirelli has always been focused on the environment and acted early to clean technology cheaper and they need to help transitions take place by ENVIRONMENTALLY create a sustainability steering committee and a corporate sustainability setting standards and forcing change in industries, and in some cases by SENSITIVE AS department, which guides it in everything it does. “We have devoted footing the bill.” scientists and engineers researching how to clean up the environment Provera also notes that consumers have to be amenable to TO SPEND MORE and exist in a more sustainable way, and we have registered patents accommodating these challenges. “ e consumer is not always so MONEY FOR A for such things as turning city waste into clean fuel and ltering diesel environmentally sensitive as to spend more money for a product that is emissions to eliminate tiny particulate matter that pollutes and causes better for the planet, so this is an area where the free market needs a PRODUCT THAT cancer,” Provera says. little boost from governments.” But he also adds that “the challenges for IS BETTER FOR “We have consistently upgraded and rebuilt our factories, and built new Pirelli are o en bureaucratic: too many di erent regulatory standards, factories with attention to energy and water savings and low emissions. too many jurisdictions to register the same patent in, high costs, high THE PLANET, SO Our newest factory, which will begin production next year, will be solar taxes, uneven competition. But we are a company that has always been THIS IS AN AREA powered and will be built with special smog-eating cement.” driven by research and development, and this will continue.” Europe has set quality standards for tyres in terms of fuel consumption, Pirelli’s enthusiastic attitude towards innovation is also a part of its WHERE THE FREE as well as safety and noise levels. “We apply these standards all over the risk-prevention philosophy. “Such truly unfortunate disasters, such as MARKET NEEDS A world, whether or not governments are calling for them. We are rolling out the BP disaster, con rm my conviction that governance based on strong new fuel e cient tires, including creating a new segment of ‘green’ tyres risk prevention is a must. Companies should be able to ensure they are LITTLE BOOST FROM for SUVs and developing cyber-technology so that a chip will be able to doing their utmost to prevent any potential negative environmental or GOVERNMENTS.” communicate asphalt conditions to the car through the tyre, thus both social impact that could be caused by their activities,” Provera says. increasing safety and improving environmental impact,” Provera says. He is very philosophical about the past, present and future of the “We are eliminating pollutants like highly aromatic oils and we are using industry and Pirelli’s forward-thinking strategies. “I, myself, cannot yet sustainable materials. Our research focuses on ‘green performance’, which imagine a world without driving, a world without automobiles, or a means solutions that are both environmentally sound and high-performance, world without oil extraction,” he says. “We thus need to work with what including standards for racing tyres. By the end of 2011, 40 per cent of our we have, focusing more and more on research not only to simply develop, revenue will be generated from environmentally friendly products.” but to develop in a sustainable way. Technology is a good thing; it is the Even so, cost-e ective solutions to environmental challenges are still key to nding sustainable solutions. I am con dent that if we focus our as much of an issue for Pirelli as they are for the rest of the automotive e orts and resources in this direction we will nd them.” 058
- 31. PLANET ENVIRONMENT A M “Anyone who believes exponential growth can go on forever in a nite S A world is either a madman or an economist,” activist and economist Kenneth E S N Boulding once famously quipped. Scientists and a new breed of green- E A minded leaders have been fervently warning T G businesses, governments and consumers for the past decade that the earth has E DESPITE DIRE reached maximum capacity PREDICTIONS – and change has to come REGARDING THE and come soon, or else. M LOSS OF THE EARTH’S BIODIVERSITY, THE Were Boulding alive today, he would likely have expanded his analysis to include all nations, corporations and consumers, who believe we can WORLD WILDLIFE continue along the route of unabated global consumption. e day the FUND CONTINUES planet exhausted its renewable resources o cially arrived on August 21, TO BE AN ARBITER OF 2010, with human consumption being nanced for the remainder of the E year by digging into the planets non-renewable reserves – and by 2050 CHANGE, AND MORE society will need two planets to keep up with the current demand for CORPORATIONS AND goods and services. GOVERNMENTS ARE “If you spent your entire annual income in nine months, you would probably be extremely concerned,” says Mathis Wackernagel, president NOW THROWING N of Global Footprint Network, a California-based environmental research THEIR WEIGHT BEHIND organisation that tracks global biocapacity against human demand. “ e ITS EFFORTS. situation is no less dire when it comes to our ecological budget. Climate change, biodiversity loss, deforestation, water and food shortages – these WRITTEN BY LISA VINCENTI are all clear signs that we can no longer nance our consumption on credit. Nature is foreclosing.” T Today, according to Global Footprint and UK-based think-tank nef (the New Economics Foundation), which have developed a measure of the world’s ecological footprint, humanity requires the equivalent of 1.5 planets to provide the resources consumed yearly and absorb waste. ey say that our use of more than the earth can renew has resulted in everything from climate change and greenhouse gas build-up to species Charuplaya treefrog (Hyla callipleura) extinction, biodiversity loss, depleted sheries and soil erosion. A crisis Manu National Park, Peru is at hand and the World Wildlife Fund (WWF) is stepping up e orts 060 061
- 32. PLANET ENVIRONMENT 03 02 01 Local woman at Mekong river near South Vietnam 02 In the last 10 years we have lost nearly half of all our wild tigers 03 Icebergs in Northeast Greenland 04 World Wildlife Fund wetlands conservation programs help individuals 01 earn a living 04 01 to reverse this course, enlisting the aid of businesses and governments Today, it is not merely society’s impact on the environment making overdrawing our natural assets,” argues Glenn Prickett, senior vice- economic metrics with indicators of well-being, including subjective around the world. headlines, but also the e ect of a depleted planet on well-being and “Just as a few lonely president at Conservation International, a Washington DC-based measures of life satisfaction, which have become quite sophisticated (HPI “ e next few years will be a critical period for the future of our planet,” health. Lifestyles are changing and consumers in more developed regions economists warned us organisation that works with governments and companies (including uses data from Gallup, World Values Survey, and Ecological Footprint). says Jim Leape, director general of WWF International. “We have huge are returning to the basics, where sustainable, environmentally friendly we were living beyond Starbucks and Wal-Mart) to make conservation part of their business. e index assesses social and economic well-being in the context of challenges ahead of us, but I’m con dent that we can rise to them.” products, be they grown at local farms or purchased from high-end “Mother Nature doesn’t do bailouts.” resources used, looking at the degree of human happiness generated per In fact, the WWF, a non-governmental agency founded in 1961, has luxury goods makers, are becoming mainstream requirements. No longer our nancial means e global nancial crisis of 2008 has morphed into something far quantity of environment consumed. named 2010 the International Year of Biodiversity. “[It is] a year when does being an environmentalist mark one as a member of a fringe group. and overdrawing larger than merely serving as a marker of a major worldwide recession. “HPI is striving to measure a better future,” Marks says, adding that one the world will set new targets to protect and conserve our environment As a larger slice of the consuming public has begun to insist on a our nancial assets, It has become a symbol of what is wrong with our current economic appeal of the GDP, has been that it presents a simple message: up is good; for people and nature,” according to Chief Emeka Anyaoku, its former proactive approach to sustainability with regards to the products and model – a model where success is measured on an unsustainable down is bad. “HPI is trying to mirror that simplicity, using one number president. ose goals include reducing the world’s global footprint to service they purchase, forward-thinking corporations have adopted new scientists are warning us model of growth based on production. Furthermore, it has witnessed a as a headline indicator.” pre-2000 levels by 2020; with an overall target of staying within earth’s strategies in response. More and more in the business community are that we’re living beyond rethinking among some economic analysts and players who now ponder As a steward of sustainability and environmental conservation, capacity by 2050. No easy feat considering that the Swiss-based agency beginning to view sustainability and environmental conservation not as our ecological means the fundamental nature of what it means to be successful not only as a the WWF has undertaken an massive campaign to further it’s agenda saw revenues drop by $4m to $598m last year. a cost to the bottom line but as a way to drive future pro tability and business or nation but as society as a whole. Using strict measures such of conserving biodiversity and reducing society’s impact on the ensure survival. However, time is running out – and quickly. and overdrawing our as gross domestic product, sales or even new store openings is antiquated environment. “Businesses realize that their supply chain can be at risk if NONETHELESS, it continues to devote more expenditure on “We have only this generation to get sustainability and the environment natural assets.” to these forward-thinkers. ey say that these markers fail to take some they are using natural resources that are depleting fast, and particularly conservation e orts. And, perhaps more importantly, is that corporate and right,” Leape notes. Plants, animals, fungi and microorganisms form of the most important, though far more di cult to measure, criteria of vulnerable to cost volatility,” notes WWF’s Jennifer Meunier CHANGE government support of the WWF agenda continues to grow – signaling a complex, interconnected web of ecosystems and habitats providing success into account, including well-being and happiness. TO Eleni Androulaki. “Moreover, companies realize that they can reduce that a shi in attitude toward the state of the environment and society’s humanity with clean water, breathable air, food, medicine, energy and “ e GDP suited a di erent era and now we need a metric for our times,” costs by being more sustainable – for example, using more energy impact on it, is taking place among top business leaders and policy makers. more. ere are already millions of people around the world who are says Nic Marks, a fellow at the London-based New Economics Foundation e cient buildings results in reduced CO2 emissions and lower energy Since 1985, the WWF has invested more than $9bn in more than feeling the consequences, in rich and poor countries alike. Power and founder of its Centre for Well-Being. “During the Second World War, costs. Companies also stand to gain additional bene ts from proposing 05 11,000 projects, spending $366m on conservation programmes in 2009 shortages, uncertainty over food security and water availability, and production was important. A er the war was the need for rebuilding. We’re sustainable products to consumers – including an improvement of their (the most recent gures available), up from $302m in 2008 and $286m increased vulnerability to natural disasters and diseases are making 05 Leonardo DiCaprio way past that. We need to account for our ecological footprint and see how overall image.” in 2007. is comes amid a decline in income from $684m in 2007 to headlines on a daily basis. we’re operating on the planet. e GDP is o en precisely wrong in that it’s Yves Manfrini, a fund manager of Union Bancaire Privee, Switzerland, $598m in 2009, a time period that saw record increases coming from the “Just as a few lonely economists warned us we were living beyond not measuring progress, just the making of stu .” adds: “In a world of shrinking resources, those who rst recognise the corporate (up to $70m in 2009 from $68m in 2007) and government (up our nancial means and overdrawing our nancial assets, scientists 01 Drought in french guiana- e foundation developed a new marker for measuring the success need for sustainability and adopt appropriate strategies will succeed best to $130m from $99m for the same period) sectors. are warning us that we’re living beyond our ecological means and mangrove tree of nations, which it has dubbed the Happy Planet Index. HPI combines in future global competition.” 062 063
- 33. AUTUMN TONES Amouage’s Oriental Oud candle from the new Oud home Encased in walnut, Tivoli Audio’s new collection imbues interiors with the woody fragrance of anniversary model, the Model 10 table radio, Agarwood, evoking the intoxicating scent of autumn. brings you the the best sounds of the season. Available from Gazzaz, 30th St AKA Prince Sultan Bin Tivoli Audio M10, Available from Dubai Audio Abdulaziz St, Riyadh; amouage.com Centre Sheikh Zayed Road, PO Box 32836; dubaiaudio.com For after hours glamour, Valextra’s Handy clutch bags are well worth the trip to Milan. This seasonal triumvirate of navy, ocra and marasca offers the ideal match for any ensemble; Protect your coveted iPad in the tones and valextra.it textures of the season with Tod’s calfskin and crocodile iPad cases. Ground Floor Centria Mall, Olaya Street, Riyadh; tods.com AUTUMNAL TONES INSPIRE A WINTER RICH IN COLOUR. STAND OUT IN THE MOST DAZZLING HUES OF THE SEASON. WRITTEN BY ASHLEE BEARD FALL FOR COLOUR TRENDS are notoriously cyclical, and as forecasters astutely point out, Chloé’s Darla epitomizes the during times of economic struggle, fashions become brighter and designs sophisticated femininity of the become bolder. Manufacturers turn to chromatherapy in an attempt to celebrated French fashion house. coerce customers back into retail therapy, luring us with warm autumnal Finished in soft calfskin in the colours of tones, from deep Bordeaux and russet reds, to invigorating tones of apple the season, these chic little numbers are Stylish storage comes courtesy of Dutch artists green and orange – a favourite this season. Each shade plays an important the ideal office accessory. Scholten & Baijings for Established & Sons, ideal psychological role as tools to instil calm, energy – even productivity – Available from Saks Fifth Avenue, for stashing away your favourite things. as commercial interior design teams and leading corporations have Kingdom Shopping Center, Olaya Street, Established & Sons, available from discovered. Strength, power and leadership, make a bold statement this PO Box 11321 Riyadh; chloe.com Four, Shuwaikh Industrial Area, Mahdi season. Habeeb Building, Block 7, Str 12, Office 8, Shuwaikh; establishedandsons.com Belt up in Aquascutum’s cozy chartreuse wool suit, guaranteed to become a perennial Creative Cycle’s unique custom-built Battle favourite. Aquascutum, Axe, created by master bike builder Doug available from Villa Keim, is the ultimate road warrior. Moda, Moda Mall, Made to order; creativecycles.com Bahrain WTC, Manama, Kingdom of Bahrain; aquascutum.com 064 065
- 34. AUTUMN TONES Walnut with sycamore marquetry marks out master cabinet maker David Linley as a true craftsman, as the Garrick desk set attests. Available by mail order, David Linley, 60 Pimlico Road, London, SW1W 8LP; davidlinleyfurniture.com With Montblanc’s limited edition Vintage Chronographe on your wrist, it’s impossible not to watch the clock. This new member to the venerated Collection Villeret 1858 features a stylish spiral Be the king of the urban jungle and show your shaped tachymetre and predatory prowess with Louis Quatorze’s audacious telemetre, circumscribed in an printed briefcase. Louis Quatorze; louisquatorze-paris.fr 18kt red gold case. Kingdom Centre, 1st Floor, Riyadh; montblanc.com Warm mahogany tones single out Riva’s new Aquariva by Marc Newson as the most stylish speedboat of the season. The limited edition Aquariva by Marc Newson is available from Gagosian Gallery, 555 West 24th Street, New York NY10011; gagosian.com SHO JI FU JII06 Add a shot of colour to your desktop while 4 maintaining order in style with Danese Milano’s Bumblebee magazine holder. Take the stress out of Spend too much time in taxis? Be the envy of the stopovers with Mandarina Gucci’s Winter 2010 Obviously Scandinavian design boardroom with Duck’s Drop Plus. Its bold, collection features group Front have. Moroso’s quirky ColorWare’s custom sturdy polycarbonate shell earthy country colors Wood chair is inspired by the classic coloured iPhone stands out on any luggage for urban living wooden bead seat cover; moroso.it G4. ColorWare; carousel, ensuring a quick colorwarepc.com getaway; mandarinaduck.com 066 067
- 35. LUXURY TRAVEL EXPERTS PREDICT THAT THE WORLD TRAVEL MARKET WILL CONTINUE TO GROW, AND TOURISTS AREN’T SKIMPING. THINK DISCLOSES THE INSIDE TRACK ON FUTURE TRAVEL TRENDS AND THE FINEST NEW HOTELS ACROSS THE WORLD. WANDERLUX PACK your bags; next year will be the year to travel. At the start of 2010, we reported that the Middle East was to defy the recession quality. Holidaymakers are reducing the number of holidays they take but up-grading the quality of accommodation they stay in.” at has with a host of new luxury hotel openings, legacies of the boom years. meant an increased demand for all-inclusive packages in ve-star resorts: While it has been true that properties have been plumping their pillows Travellers are prepared to spend on their holidays but they don’t want to and opening their doors across the world, the question on everyone’s lips pay for hidden extras. has been whether there is enough demand for ve-star travel to keep Dr. Rag. Gabriele Zerbi, CEO of H.r.c,(CastaDiva), a luxury hotel chain them in business. on the shores of Italy’s Lake Como, is in accord: “ e ve-star luxury Traditionally, high-end hotels are kept alive by a healthy mix of sector is not a ected by the crisis. is may not be the same for the three executive and wealthy leisure travellers. Over the last couple of years and four-star properties, but the fact that there are very few ve-star corporate and domestic purses have been snapped rmly shut and jittery luxury properties in Italy protects this sector.” hoteliers and commentators wondered if things would ever be the same He also believes that luxury is also evolving. “Today there is a new again. concept of luxury; a type of luxury that’s younger, less formal and less Travel slumped in 2009, falling by around 13 per cent across the region, rigid. Dynamic, cultivated people nowadays want to have their emotions leading the World Travel & Tourism Council (WTTC) to gloomily claim stimulated, they want new experiences but, more than anything, they at the outset of 2010 that it was likely to be a at year for travel, pointing want a service that matches their individual personality.” out that international airlines saw passenger numbers dip dramatically. Tourists are predicted to roam domestically and internationally, short But it seems that things are on the turn. and long-haul, as households up their spending on holidays having According to the UN World Tourism Organization (UNWTO), reined themselves in last year. But, unfortunately for airlines, they’re international travel has jumped seven per cent, but the Middle East has likely to continue their disfavour for business class, with the vast majority led the pack with a 20 per cent growth in tourist numbers. Whatever of leisure tourists saying that they will continue to y economy and more the realities of this year’s performance, both the WTTC and UNWTO business customers sticking with premium economy tickets. agree that the tourism market will grow steadily over the coming decade, Not that carriers have been disheartened. Middle Eastern airlines are starting next year. capitalising on the weakness of their Western counterparts and growing Perhaps buoyed by this news, the new project announcements that have at a staggering speed. Emirates put in a $9.1 billion order at this year’s been so scarce this year have begun once again. Notable in the Middle East Farnborough Air Show and forges ahead with a dedicated terminal for is Orascom Development’s news that it is to splurge US$245 million on two its A380s at Dubai Airport. Etihad Airways posted double-digit growth Four-Seasons managed hotels, slated to be ready by the end of 2011. for the rst half of 2010. Qatar Airways has orders and options for 178 at the hotels planned are Four Seasons properties is a sign that there news planes and plans to go ahead with 15 new destination launches in remains an appetite for luxury travel. In fact, high-end hotels have seen the coming 12 months. the most demand and are back up to the levels of three years ago a er Not to be outdone, Western airlines are pursuing a vigorous mergers occupancy in these properties increased by 10 per cent in the rst half and acquisitions frenzy to adapt their business models to a new world of 2010. Here in the Middle East, a recent survey by STR Global shows travel order. United and Continental have been approved to form a ‘super that 49.7 per cent of hotel rooms under construction in the region are airline’; BA has merged with Iberia and eyes other potential take-overs in ‘luxury’ and ‘upper upscale’. Marriott Hotels has reported second quarter a bid to keep up, despite being troubled by industrial action; Lu hansa pro ts that beat expectations and anticipates that room rates will likely has acquired three additional European airlines and anticipates that rise again by the end of the year when corporate bookings resurge. e international mergers will continue apace. willingness to splash out on luxury trips is a sign that people are once With hotels and airlines aligned in their determination, all that remains again con dent in their nancial stability. is a mighty tussle for market share. Travellers should take full advantage Paul Nelson, spokesman for the World Travel Market, says: “ e global as the airlines and hotels attempt to woo customers with attractive o ers Castadiva hotel nancial downturn has seen a number of people switch from quantity to and bene ts. 068 069
- 36. LUXURY TRAVEL 02 03 01 Praia de Luz – elegant lounge bar LAKE COMO, ITALY at Park Hyatt Goa Resort and Spa e Castadiva is the chicest ve-star resort to open on the shores of its own pool and butler’s kitchen – some even have views as far as the iconic 02 The Castadiva Lake Como in a century. A short 55km drive to the heart of Milan, the Table Mountain. Privacy is assured by delicate hedges of camellia and co ee 03 Fine dining in Hotel Verta Castadiva is gaining in popularity with those in search of a less formal, jasmine and you can enjoy guilt-free indulgence, safe in the knowledge that individual destination for those in the know. e former lakeside every e ort is being taken on your behalf to minimise water and electricity residence of the famous opera singer Guiditta Pasta, the luxury resort consumption. And if you like the artwork, ask Gra for more details – all the brings a new dimension to the Como hospitality landscape. pieces have been selected from his private collection. Nestled in the gardens are secluded luxury villas, apartments and even Back in the main lodge, you can take advantage of a private dining a spectacular independent duplex t for a rock star. George Clooney, still room, conference facilities and even a boutique cinema. one of the Lakes’ most celebrated celebrities, and his Italian television Book into: Delaire Graff Lodges & Spa personality girlfriend have already tried and tested it. Where: Cape Town, South Africa e piece de resistance, however, is the 1300 square metre spa, which Why: The best views in the Stellenboch The travel and tourism industry employs has been conceived to resemble the set of a James Bond movie. Contact: +27 21 885-8160, www.delaire.co.za approximately 235 million people and e dual occupancy thematic spa suites are perfect for honeymoon couples. generates over 9.2 per cent of world GDP e oating swimming pool and deck, which converts into a magni cent GOA, INDIA From 1950 to 2005, international tourism show fountain at night, adds to the romance of the idyllic resort. Spread over 46 acres, the Park Hyatt Resort and Spa, conceptualized as an arrivals expanded at an annual rate of 6.5 Book into: Castadiva, part of the Tais Collection Indo-Portuguese village, resembles a lively picturesque town full of fragrant per cent, growing from 25 million to 806 Where: Lake Como, Italy plant- lled courtyards and gardens, linked by Venetian canals, bridges and million travelers. Why: Contemporary operatic style resort – the newest five-star luxury resort cobbled streets. e hotel blends vibrant elegance with high drama to recreate In 1950 the top 15 destinations absorbed to open in Italy this summer. the cheerful and relaxed atmosphere of a small Goan village. 88 per cent of international arrivals; in Contact: +39 31 32 511, www.castadivaresort.com At the heart of the resort village, a collection of four recently refurbished 2005 that figure was down to 57 per plaza restaurants o ers a variety of culinary delights, each with a select cent, reflecting the emergence of new CAPE TOWN, SOUTH AFRICA menu of authentic food and lively open kitchens, as well as indoor and destinations, many of them in developing e Delaire Gra Estate is an established destinction that re ects the outdoor seating. An in-house cinema provides evening entertainment for countries. wealth of South Africa’s diamond and wine trades. Owner Laurence Gra , those who have time on their hands and prefer the indoors. e warm By 2020 international arrivals are founder and Chairman of Gra Diamonds, bought this estate straddling the décor of the rooms, with a sunken mini swimming pool and outdoor expected to surpass 1.5 billion people. Stellenboch and Franschhoek districts and vowed to turn it into one of the shower, make them unforgettable. Many of these are expected to be retired leading restaurants and boutique hotels in the world-famous vineyard region. Book into: Park Hyatt Goa Resort and Spa Baby Boomers. He’s done a good job. You’ll nd a delicious series of 10 private lodges set Where: Goa, India The five most visited countries last year against breathtaking hillsides with all the facilities you and your party could Why: Its distinctive Indo-Portuguese style, excellent facilities and warm were, in order, France, USA, Spain, China need. Choose from a two-bedroom Owner’s Lodge with log replace and ambiance 01 and Italy. private heated pool, or cosy up in a smaller one-bedroom lodge, also with Contact: +91 832 272 1234, goa.park.hyatt.com 070 071
- 37. LUXURY TRAVEL 01 02 LUANG PRABANG, LAOS DUBAI, UAE Most people wanting a taste of South East Asia make a beeline for ailand, e opening of the Armani Hotel in Dubai marked the rst of the 01 Armani Hotel Dubai but to do so is to spurn one of the most regal cities of the region. Luang internationally celebrated designer’s hotels. Housed in the base of Burj 02 Alila Luang Prabang Prabang, the cultural and spiritual capital of Laos, is found on the banks Khalifa, the world’s tallest building, the property has been personally of the Mekong River, which snakes languidly towards the sea. As a former designed by Giorgio to bring interiors su used with his understated style. colony, the city boasts a fusion of laid-back French-Laotian culture, with e focus is on luxurious quality. Each room is clad in opulent fabrics co ee and croissants sitting alongside golden-roofed temples amid the and leather, the bathrooms are nished in green bamboo marble from jungle. ere is nowhere better to stay in the city than the Alila Luang Brazil, while the living spaces are furnished with bespoke oak tables with Prabang. Built on a heritage site, it channels colonial sophistication a liquid metal nish. It is minimalism taken to a new level, but the sharp without forsaking any modern luxuries. Secluded but just 10 minutes lines and graphic design schemes are precisely evocative of his distinctive from town, you can retreat to a sanctuary of plush calm a er a busy day signature clothing. Be sure to take advantage of the exceptionally helpful exploring and enjoy tranquil gardens, real res, natural spa therapies and sta in nding your way around – you risk getting lost if you don’t. gourmet meals. ere are only suites here, all of which open onto either Book into: Armani Hotel Dubai a private garden, pool or pavilion – two even have exclusive tower access Where: Dubai, UAE for the ultimate in panoramic dining. Why: Be among the first to experience the designer’s hotel Book into: Alila Luang Prabang Contact: +971 4 888 3888, dubai.armanihotels.com Where: Luang Prabang, Laos Why: Perfectly combines luxury with cultural distractions and outdoor pursuits LONDON, UK Contact: +856 71 260 777, www.alilahotels.com/luangprabang Since 1889, the very name ‘Savoy’ has stood to mean the very best in classic hospitality; it was the rst to be lit by electricity and the rst to LONDON, UK have ‘ascending rooms’, or li s as we now know them. e iconic London e Von Essen group of hotels counts amongst its properties a Castle hotel has been closed for three years in a refurbishment project that took frequented by Britain’s Henry VIII so you can be pretty sure that you’re going twice as long and cost over twice as much as planned. Problems have to encounter something special when you book in. e newest to launch is plagued the development, now, under the Fairmont banner, the company the Hotel Verta in the heart of London. Sitting alongside the London Heliport awarded the management contract, but the sta are prepped and ready in Battersea, it might be one of the best aerially connected spots in London, to reopen the former palace for business on 10/10/10. perhaps excluding Heathrow airport, which would be signi cantly noisier. It e new incarnation blends original Edwardian grandeur with combines old world, ve-star values with boutique service, artisan decorative Art Deco glamour and the latest, discreet technological conveniences, avours and views over the historic River ames. Rooms combine the best maintaining its ve-star service standards. Many of the 269 rooms in classic design – with period art deco furniture and locally relevant books and suites have views of the River ames and London City, while and maps – with contemporary technology including at screen TVs, WiFi the signature suites have been styled a er some of the hotel’s and touch pad heating and light controls. And when you get hungry, call highest pro le guests. e Royalty among them has given rise to a roomservice for the very best in modern European cuisine, from lobster spectacular two-bedroom Royal Suite which previewers say is ‘ t for thermidor to the humble burger, as you watch helicopters descend. a King’. Book into: Hotel Verta Book into: The Savoy Where: London, UK Where: London, UK Why: Unrivalled location if you prefer to travel by air Why: The rebirth of one of the world’s grandes dames hotels Contact: +4420 7801 3500, www.hotel-verta.co.uk Contact: +44 207 420 2300, www.fairmont.com/savoy 072
- 38. EXHIBITION PROJECT 60 THE NEWLYESTABLISHED ECONOMIC CITIES AUTHORITY (ECA) IS MARKING ITS ESTABLISHMENT WITH THE LAUNCH OF AN INNOVATIVE NEW ART SCHEME, SHOWCASING THE VERY BEST IN CONTEMPORARY SAUDI ARABIAN ART. DESIGNED TO SUPPORT THE CULTURAL DEVELOPMENT AMBITIONS FOUND IN SAUDI’S ECONOMIC CITIES, “PROJECT 60” WILL INVITE CONTEMPORARY SAUDI ARTISTS TO LEND THEIR ARTWORK – 60 PIECES IN TOTAL – TO THE NEW ECA OFFICES IN KING ABDULLAH ECONOMIC CITY FOR A THREE- MONTH DISPLAY. THE INITIATIVE ALSO INCLUDES A COMMITMENT FROM THE GOVERNMENT’S ECA, WHICH ENSURES ITS SERVICES WILL BE OFFERED IN NO MORE THAN 60 MINUTES, ALL DAY LONG, THROUGHOUT THE ENTIRE WEEK. 074 075
- 39. EXHIBITION 03 06 01 02 THE Economic Cities Authority (ECA) has identi ed an opportunity to utilize its headquarters as a platform to expose Saudi art to the diverse and create sustainable jobs (an estimated 1.3 million of them) for its burgeoning populace, authorities are establishing dedicated economic 01 02 audience of business and political gures who frequent the o ces on a daily cities. SAGIA estimates that the forward-thinking, sustainably designed basis. Project 60 will also serve to highlight one of the ECA’s most exciting and environmentally-minded cities will contribute US$150 billion to the initiatives, 60/24/7, a service to make government and non-governmental GDP by 2020, not to mention a high quality of life for residents. ey 05 services available to residents and expatriates, individuals or businesses, are intended to provide continuous improvement to the Saudi Arabian within 60 minutes of their request, any time of the day. investment environment. Four of the six planned new economic cities Modern artist Ola Hijazi’s will be the rst to display her most recent are currently under development – King Abdullah Economic City, work in the head o ce, under a scheme which communicates ECA’s Prince Abdul Aziz bin Mousaed Economic City, Jazan Economic City cultural mandate, which recognises the fundamental role vibrant culture and Knowledge Economic City – in conjunction with UAE real estate plays in supporting a successful city, especially where parks, museums developer, Emaar Properties. 04 and other cultural provisions are diminished. Over a 1,000 of the world’s free zones were surveyed and the 60 deemed e authority is focused on developing an urban ecosystem within most successful were meticulously studied to determine key success 01 Symphonyat 4 the Economic Cities that simultaneously fosters the mutually supportive factors during the economic city development process. e resulting 02 Symphonyat 10 elds of business and culture. Project 60 will allow the organisation to products are intended to create vibrant centres of excellence in several 03 Muwashahat 11 open a creative dialogue surrounding the mandate, which recognizes that sectors. 04 Washmiyat 9 culture is integral to the liveable cities. 05 Darwishyat 1 e scheme will be inaugurated through an opening reception jointly- THE MOST prized of the new cities is the King Abdullah Economic City 06 Washmiyat 15 hosted by ECA and King Abdullah Economic City developer Emaar. e (KAEC). It represents a US$27 billion investment driven by the government 03 local and international business and diplomatic community, in addition but funded by the private sector, the largest private sector project in the 01 Ola Hijazi in her studio to the art community in Saudi Arabia, will be invited to view a regularly- region. And in order to encourage private investment, authorities have 02 Economic Cities Authority, refreshed showcase of cutting-edge Saudi artwork, year-round. been actively removing barriers to trade to make the new cities among the exhibition venue e economic cities stand as physical proof that the oil powers are not world’s easiest places to do business. 03 Darwishyat 22 complacent in their oil weath. Saudi Arabia may be one of the world’s When completed, KAEC will be the size of Washington DC, housing wealthiest nations, but it also has a large, youthful population. In an e ort and employing up to two million people. Six key components are intended to diversify the economy away from a dependency on hydrocarbons to create diversity of economic opportunity: a sea port, industrial zone, 076 077
- 40. EXHIBITION 02 03 04 01 Muwashahat 10 02 Kulsumyat 4 03 Symphonyat 7 04 Kulsumyat 1 01 078 079
- 41. EXHIBITION OLA HEJAZI www.olahejazi.com Born inTripoli, Lebanon, Saudi artist Ola Hejazi has been based in Jeddah since she was raised there as a child. Considered one of the leading abstract expressionist artists in the Kingdom, Ola’s trajectory as an artist can be traced back to the Saudi Art Center in Jeddah where she first experimented with oil painting in 1995. She has gone on to develop her skills in printmaking and portraiture through a host of courses in the best art schools internationally, including the Chelsea College of Art and Design and the Slade Art 02 School at the University College of London. Her work follows the theme of abstraction and traditional symbols, with a pronounced use of primary colours and Arabic calligraphy as a clearly distinguishable common thread. She is constantly drawing on her educational background in Arabic literature, seeking inspiration from the poetry of Mohammad Darwish or the music of the iconic Umm Khulthoum in her latest series Darwishiyat and Khulthoumiyat. Ola likes to express her form of ‘truth’, as she sees it, through a combination of bright colours and often written words on the canvas, relaying through her images a rich array of human emotions. None of her pieces are titled, a deliberate move so that viewers are not confined in their interpretation of her work. Her work has steadily evolved throughout the years, expressing stronger opinions about her own design. There is more colour, more detail, and more tension in her work. In her last series 03 Tattoos, she introduces black onto her canvases and uses numbers and geometric shapes instead 01 Washmiyat 4 of the free form calligraphy that has dominated 02 King Abdullah Economic City her earlier work. 03 Darwishyat 9 In addition to her private painting endeavours, 04 Washamyat 24 she enjoys working to foster artistic talent with 01 05 Darwishyat 4 children and also trains teachers to develop their experiences in order to teach their students in a 04 05 more creative way. “The visionary inspiration and imagination in not a technical skill learned in school,” she says, educational zone, centre business district, nancial island and residential are invited to establish a hub in the heart of the globally important Saudi “but rather to my personal belief, a gift from God. districts, including 25,000 hotel rooms to accommodate guests, notably market. This is the only way I can explain the source on their way to pilgrimage. Low-cost energy provides the main enticement for foreign investors. of any idea I may have during the creation With access to the Red Sea, and a key strategic location between Jeddah and But not the only enticement. e Kingdom has been actively developing process.” the Holy Cities of Mekkah and Medina, the city also incorporates a special its human resource pool by supporting its highly-educated youth One of Saudi Arabia’s leading and most sea terminal for these pilgrims. In addition, it is intended that the port will population through vocationally relevant higher education programmes. celebrated female artists, she has participated make KAEC a global hub for light industry, providing good transport links and Developing a Cultural Strategy for the Economic Cities will add another in countless group exhibitions internationally, proximity to the rich natural resources found in Africa and the Middle East. dimension to the urban environment that will cater to the young and including Qatar, Jordan, France and Egypt. Maximising the natural resources available in the Kingdom itself educated demographic who seek out these types of lifestyle amenities. With Preceding her display for Project 60, Ola is also a goal. Petroleum resources will provide low-cost feedstock long term plans to include cultural landmarks, such as museums and art has exhibited solo shows at Atellier Jeddah in for a range of petroleum derivatives, including plastics in a so-called centers, “Project 60” is just the rst showcase of a broad development plan 2001, Europia Gallery in Paris in 2007 and a ‘Plastics Valley’ where automotive, biomedical, construction and food to infuse creativity and innovation into the fabric of the Economic Cities. permanent collection at the SAGIA headquarters packaging applications will be co-located. Knowledge-based industries e exhibition will be open for viewing from November 2nd, 2010. in Riyadh since 2007. are welcomed to the city; education is prioritized; nancial services Athr Gallery www.athrart.com is Project 60’s Gallery Partner. 080 081
- 42. FUTURE THINKING THE EFFICACYOF EFFICIENCY THE CONCEPT OF A SELF-SUFFICIENT NEW YORK COULD POINT THE WAY TO HOW PEOPLE LIVE OF THE CITIES IN THE FUTURE. WRITTEN BY STEVE HILL EFFICIENT LIVING MACHINE is an imaginative and And the vertical connections on the grid system – rising Oxygen produced on these grids would be circulated dramatic view of how New York could look in the not too from current and planned stations on the city’s Metro lines throughout domestic buildings to enhance living comfort, distant future as an energy self-su cient metropolis. – would be crucial in overall design terms, helping generate while rainwater would be collected and puri ed before being In this world, virtually everything residents require would enough electricity, food, heat and oxygen for the E cient recirculated, ready to be consumed by residents. be within easy reach thanks to an overlapping grid system Living Machine to be completely self su cient. e rms of LEDarchitecturestudio and HIDDENOFFICE that ows between buildings, becoming home to o ces and Electricity would be generated by the use of wind turbines have collaborated to produce these concept proposals, which residences as well as generating new public spaces for parks, plus highly concentrated photo voltaic and hydrogen are described as a way “to revise the city… and above all an recreational facilities and even farms, improving the livability systems. e length of the food chain would become much attempt to imagine what could take place in another way”. of the city. shorter thanks to the close proximity of farms to the eventual Residents, they add, could be o ered di ering lifestyles In this new city, nothing and no one is rooted to the ground, destination of products. on di erent levels of the grid, with the density of functions with residents no longer needing to have their own cars because And the fermentation of organic waste from the farm and the enabling people to move conveniently from the o ce to a the public transport system would be so convenient and e cient. city itself would help produce a source of heating for residents. park or farm. 083
- 43. BOOKS REVIEWS BY DOROTHY WALDMAN ERICK VAN EGERAAT Erick van Egeraat won first prize in 2007 for his concept design for the National Library of the Republic of Tatarstan, Russia. Embedded into the hill, a multi-functional atrium is at once a meeting point, boulevard, gallery, living room, garden and educational facility, with the intention of encouraging citizens to use the resource freely. ICONOCLAST: A NEUROSCIENTIST THE BUSINESS PLAYGROUND: WHAT THE DOG SAW AND GOOD VALUE: REFLECTIONS ON REVEALS HOW TO THINK WHERE CREATIVITY AND OTHER ADVENTURES MONEY, MORALITY AND AN DIFFERENTLY COMMERCE COLLIDE Malcolm Gladwell UNCERTAIN WORLD Gregory Berns Dave Stewart & Mark Simmons Penguin Books Stephen Green Harvard Business Prentice Hall This collection of articles, Allen Lane Press In today’s highly which all originally As the world began its Defining an iconoclast world, there are many appeared in The New plunge into economic as a person who does businesses trying to Yorker, share the unique crisis in 2008, Stephen something that others say compete on the basis observations of Malcolm Green, chairman of cannot be done, Gregory of quality, price and Gladwell, the highly- HSBC, began reflecting on Berns, who holds the timing. However, to regarded author of The history, politics, religion, Distinguished Chair of be truly successful you Tipping Point, Blink and philosophy, literature and Neureconomics have to be creative to Outliers. The title essay is about Cesar economics to understand the deepening at Emory University yet translates technical discover unique ways Millan, a dog whisperer. Interested in what gloom surrounding global affairs. Beginning findings for a broad audience, reveals of doing things better or goes through the minds of people, Gladwell with an examination of how globalisation how successful people think differently. differently from everyone else. Most cultures first wanted to know how Millan was able has affected human history, he progresses Recognising the natural roadblocks focus on structure and uniformity rather than to calm animals, then realised that the towards the future. With the seemingly that inhibit innovative thinking – flawed on the risks associated with creativity. This real question was what went on inside the contradictory goals of reducing poverty perception, fear of failure and the inability entertaining book applies the magic of dog’s head. Other essays ponder financial while reducing carbon emissions, businesses to persuade others – he examines a host creativity that we all innately possessed as scandals and disasters, such as the crash and people must develop new ways to of successes to illustrate and explain how children to business by providing a plethora of the Challenger space shuttle, or wonder interact and react with each other for the breaking through these barriers allowed of idea-inducing games to recharge the about decision-making in a world of both individual and communal good in order to these individuals to earn their iconic status. creative juices. too much and not enough information. produce lasting value. 085
- 44. VISIONARY THE rst-ever synthetic life form to be birthed in a laboratory has been created by Dr John Craig Venter, performance recognised as one of the world’s leading scientists for his Powered by contributions in genome research. Every letter of the genetic code of a single-cell bacterium was synthetically replicated at the Craig Venter Institute in Rockville, Maryland, a er more than a decade of work at a cost of $40 million. To mark the genome as synthetic so its replication can be traced, strands of watermarked DNA containing a coded message were introduced into the cell. Life is constant. The energy to power society can be no less. Each and every day Sempra Energy companies provide reliable, sustainable PIONEERING SCIENTIST, DR CRAIG VENTER,IS THE FIRST PERSON TO energy to millions of people. We take great pride SYNTHECISE A LIVING ORGANISM in owning the largest natural gas utility in the IN A LABORATORY. United States and building large scale energy WRITTEN BY DOROTHY WALDMAN infrastructure. This includes one of the largest “ is is an important step, both scienti cally and philosophically,” Dr Venter says, marking a new era thin-film solar sites in North America and joint when life can be made to bene t humanity by absorbing pollutants from the atmosphere and even producing development of the most expansive natural proteins for life-saving vaccines. e economic value of this discovery has been estimated gas pipeline built in North America in the last to be more than a trillion dollars; if his vision of creating algae that can be converted into fuel – a Venter project in 20 years. We operate one of the leading conjunction with ExxonMobil – comes to fruition. Some see this achievement as a signi cant breakthrough, LNG import firms in the United States. Our assuring Dr Venter the Nobel Prize. Other scientists argue that it is not a new kind of life form because the cell clean-burning natural gas power plants produce behaves like any other of its kind, while still others view it as an apocalyptic Pandora’s box. over 2,600 megawatts of electricity. At Sempra, Although opposed to the war in Vietnam, it was during his dra ed tour of duty as a medical corpsman with the US Navy, it’s not about who we are. It’s about what we do when he cared for wounded soldiers, that the former surfer and night clerk ar Sears department store developed a desire to study medicine that would lead to scienti c research. He entered the State University of New York, Bu alo, leaving in six years with a doctorate and then joining the National Institute of Health, where he developed a rapid method of nding genes, ultimately becoming entwined in an international patent controversy. Regardless of the furowre that sometimes surrounds his work, Dr Venter’s most recent discovery is “a de ning moment in the history of biology and biotechnology” according to Mark Bedau, a philosopher at Reed www.sempra.com College, Portland, Oregon. Dr Venter was listed on Time EVAN HURD magazine’s 100 most in uencial people in the world list in 2007 and 2008. 086