December month fascinates me ever since I was in my diapers. Every year when the month pass through it gives me mixed emotions. Both happy and sad. I am happy that I could be part of a Global celebration and also cherish the birth of Jesus Christ being a Christian. I am sad because, it's the last few moments of the year which caution me of the upcoming challenges and reminiscence of the passing year.
It's been nearly 3 years now residing in Dubai and my wife reminded me of the gala celebration with all family members in town. In the last fall we couldnt merry with the whole members of the family . That is a strong reason for celebrating X'MAS this time. I couldn't resist much.
Children are agog with the festival mood and the first thing they insist me is to place an order for an indoor Christmas tree. A search in the nearby shopping malls made my nerve chill after looking at the price tag. I have decided to have a try at the local market for a cheaper version. A friend of mine guided me to the inner roads of Deira. After several attempts we could locate a retail shop selling decorative items. At one go you feel the items were dirt cheap. It amused me further on realising that a cramped shop of this sort is storing a hell lot of materials. All China made.
The sales man was insisting to buy some original stuff rather than the one which was displayed. He kept saying that the original stuff (kept in the godown) would be durable in the long run and its quality is much superior. But I insisted for a basic model among the items displayed. It would cost me only 1/4th of the price I have seen in the supermarkets. The sales man is not budging. Now he demands only a little higher for the so called original stuff than the cheap one which is displayed in the showroom. When he saw I am not relenting his next offer was tempting. Almost at par with the price tag of the Original item. Orginal stuff for the price of a cheap one. I was skeptical because the new item is also some Chinese stuff except the packing and the price has finally nosedived to half from what he has asked earlier. My friend winked his eyes and gave an agreement nod. I am sold. At least I should respect his suggestion . He has taken the pain of coming with me to an interior place for no purpose of him. With some weight lifting steps we could carry the pack and walk a few miles to reach our car. Thank god the weather was graceful and moderate.
Children couldn't resist the temptation for seeing the tree unfurled. In no time unwrapping is done and to my surprise the whole set need to be assembled from the scratch. When I dig through the stems I could see some broken pieces of balloons and decor foil papers. My intuition proved to be right. The tree was an used one but in a new carton pack. The sales guy was certain that I would not come back to his shop for an exchange weathering the climate carrying the heavy box and bothering the parking issues in Deira. My lawyer mind kept insisting for a retaliation but my common sense prevented to proceed further. My mind kept reminding me -It is not worth it. I would loose more money if I carry the stuff back. I phoned him the other day but he defended with some petty excuses but had to surrender finally. I Just cautioned him firmly so that he will not continue the same Modus Operandi with others. Let it be my Christmas gift in disguise to him. After all Christmas is all about gifting. The best gift one can give is to forgive someone for a fault done intentionally or otherwise.
The whole incident prompted me to write this blog with a touch of business . Now a days the imported chinese items are flooded in the market. You could get anything from a portable and illuminated nativity set to self blinking stars for christmas. China is the largest exporter in the world. It has become the 2nd largest economy surpassing Japan recently. Despite its global dominance in exports it lack credibility as a democratic nation. The news about the nobel laureate Mr. Liu Xiaobo is still warm. He is under house arrest with no access to any one expect the disguised Chinese military men. All he did was he opposed the one party communist system in the country. He will celebrate the Christmas ( I guess he is not a christian) & New Year under surveillance and no freedom to visit or exchange greetings even with his close relatives. It still haunts me the portrait of Liu Xiaobo being kept at a chair as a symbolic presence at the 2010 Nobel price ceremony as his own government has prevented him from reaching the venue to accept the awards which was considered to be noble among all awards.
Julian Assange is a celebrity now. He is constantly harassed by several governments for publishing cable transcripts containing secret diplomatic messages. The Guardian reported the version of Assange -"Why punish the messenger instead of the the actual culprit?" is something to ponder seriously. He is on legal bail now for an offence purportedly created to chain him. Come what may Justice shall prevail. He has to wear an electronic jewellery all the time while on move which provides an indication of his movements. He has to report atleast once in day before the police. But he is provided a laptop. He will have his X'MAS within the four boundaries. Away from his own family and country men. His X'MAS is in limbo for what he has done to the journalist community. Reporting fearlessly and against the mighty US and its alliances.
Greece is still struggling to recover from the economic mess it had created in yester years. The Austerity measures implemented by the govement at the like of EU is showing no sign of improvement. The pictures appear now a days in the front page of international newspapers were alarming. The protesters clashing with government and the bleeding faces are a common sight these days. Spain is under scanner. Other EU members like Italy, Portugal and Belgium shall soon follow the suit. Christmas is still a pain for many of its citizens despite the fact that they want to consider otherwise. Let peace be upon them.
A picture appeared in International Herald Tribune recently --An Irish lady selling all her belongings for a song was heart breaking and touching. She plans to migrate to other country.The economy has crashed. Once a dominant player in the international arena has succumbed to perils. Liquidity infusion by peer country members has found no avail. Ms. Angela Merkel, the German Chancellor is against the bail out. How long a stronger nation can support the weaker and that too because of its own actions? She is quite right on her views. But others are not convinced. Can Ireland guarentee its citizens a fun filling christmas season? Only time will tell.
Let's forget these instance for a moment. Think about Palestine and Israel. Bethlehem, the birth place of Jesus Christ is surrounded by israeli forces. Huge wall seperate the Jerusalem from other regions. The famous church which was once the home ground of Christ is deserted. The restrictions put forth by the israeli authorites make the worship a ceremonial affair. Tourist who long and desire to see the holy land are scared to visit the holy place. It's a war like region. How can anyone celebrate the Christmas at this atmosphere?
I hope Mark Zukerberg will have a new way to celebrate this christmas. The social networking king might have got a different plan to celebrate. Bill Gates and his Melinda foundation is planning to have a Christmas celebration for the underprivileged class. Warren Buffet's(world's third richest man) plans is yet to be announced. Carlos Slim, the Mexican billionaire ,the world's richest, still plays hide and seek game. Brad pit and Angelina Jolie are holidaying this season at an unknown location. Let's respect their privacy. After all they are celebrities in their own world.
Corporates are still in red and yet out of woods. GM has paid back all what they owe to the US government with some innovative business strategies. It took a downturn for the GM to think out of the box. BP is still struggling to settle the claims by those affected by the oil leak. It owes billions to US as compensation. Many of its assets are under hammer to settle the dues. Employers around the world are worried. Cash flow deficit is a daily topic in management meetings. Unemployment is the biggest concern faced by governments. The most distressing question, reported by Newsweek, is HOW WOULD THE COMPANIES HANDLE THEIR DEBT IN 2011? FT has reported that many of the corporates in US and Canada have cancelled their Christmas celebration this time and have asked the employees to do it on their own.
World poverty is rising at unprecedented levels. Let me not take this space to highlight as it is known to most of us. How can anyone celebrate Christmas peacefully? I have no clue.
I am neither a celebrity nor a corporate honcho to be compared. But as like any one who observes the economic situation I too live in a fear of uncertainty. But my family disagrees to part away with the celebration mood. They have their own reasons. They say why would anyone forfeit the celebration for others? After all one only reap what he sow. I had no satisfying explanations to offer. Christmas song from my system is playing aloud. Let me also join the gang and not spoil others mood. My inner mind keeps reminding me of the factual state.It is now in questioning mode. I may not have any answers and even if I have no one is interested to lend their ears.
Let the celebration continue. MERRY CHRISTMAS, To all my friends, Colleagues, well wishers and my bizsense blog readers.
Antony Konnoth
bizsense.blogspot.com
Thursday 23 December 2010
Friday 17 December 2010
SEATTLE ORDINANCE- BIG THREAT TO YP COMPANIES IN US & GULF
SEATTLE ORDINANCE TO YP INDUSTRY -- GO GREEN OR OWN UP.
Finally, I have got a straight topic specific to my own industry to jot down few inputs with my legal pen. The topic may now have been an already notified subject to many of my colleagues and friends in the industry . This posting is solely intended to those who are interested in some serious readings to know in detail about the announced Ordinance in the US, limiting the reach and usage of Yellow Pages particularly in the city of Seattle in Washington, and the likelihood of being implemented in other US states and finally its impact in the Gulf Asian regions.
City of Seattle is familiar to most of us being spotted as the Head Quarters of the corporate giant Boeing ( HQ Now in Chicago).This legislation Per Se could cost the yellow pages industry billions of Dollars. Furthermore it could even spread to other continents. I won't be surprised if a similar kind of legislation creeps into some of the legislative domains of the Middle East countries in the near future. Though it is cliché to say 'Middle East catches cold when US sneezes' the usage still amuse people.
SEATTLE ORDINANCE - A BACK TRACK
US have an impeccable history as the paradise of right's activist and freedom fighters. Anyone who is deprived by the acts or deeds of any other individual, state or business can sue them in the Court of Law for an appropriate remedy and may reinstate the rights. Usually these kinds of actions are mostly initiated either by some activist group or politicians to gain popularity and recognition. The alternative step being, one can individually or by forming groups could approach the authorized representatives of the state or any Senate member for initiating draft legislation . Council members can also initiate these kinds of legislations citing the public interest involved. Once the final draft is made ( Around 14 drafts were prepared before finalizing the Seattle Ordinance) the paper is put forth in the Council for ratification. Once it gains the support of the majority it will be considered as the law in force either with immediate effect or later application . Environment is a popular issue now with many US politicians and they usually leave no stone unturned to achieve their objective. It is no surprise that the issue was taken up with full vigour and steam by the Seattle City Council.
In the mentioned case, Seattle City Council has passed an Ordinance forcing the Yellow Pages companies to cut down the number of books being published / printed keeping in mind of the environmental concerns. The ordinance also imposes certain regulations and fees to yellow pages companies. It requires the publisher to pay $100 as license and $0.14 per book and $148 per ton towards advance recovery fees. What the legislation aims is to collect the cost of recovering, recycling and disposing of the old copies from the Yellow Pages companies once the new edition is released. The Seattle city council is trying to set up a model where the producer, rather than the community, pays for the cost of recycling the products. Books becoming muncipal waste and eventually reaching as landfill were a great concern with many states.
It is speculated that if this model is adopted, three of the major Yellow Pages companies in US like AT &T, Super Media & Yellow Book would end paying more that half a million dollars yearly as expense alone. Advance recovery fees would be $10 billion if other 20 major publishers in US join the fray.
A suit is filed in the district court of Washington by Dex One, SuperMedia and Yellow Pages Association (YPA) challenging the ordinance citing the violation of interstate trade and privacy rights of Seattle residents. Subsequent to this suite a new website http://www.yellowpagesoptout.com/ is also created by the association for providing the residents to opt out from the yellow pages distribution network. Those who prefer not to receive Yellow Pages annually can log on to the site and opt out without citing any reason or explanation. This brave move is intended to get a favourable decision from the judiciary though the final out come is uncertain. Judges have ample discretion on environmental matters. To please community watch dogs many publishers are now trying to recall their other language editions from the press. The Spanish language variants published until now by some US YP companies intended for the ethnic segment got a huge blow below their belt. The grapevine is that the editions are now off press to save millions.
Publishers have also started using new ink which is non toxic for the printing job. The selection of paper are now from wood chip pulp intended to considerably reduce the mass felling of trees and eventually making the used paper easily recyclable and decomposable too. Yellow Pages users are divided on this issue. Many find online content satisfying their need and search requirements. But Majority still expect the yellow book on their desk as a reference source and possibly may be to continue experiencing the classic search method.
Winning a suit at the District Court of Washington may not be a difficult task for the consortium but there is a high probability that its contentions will be rejected by superior Courts since major environmental issues are involved here. The strange part is that News papers and magazines are exception by law on this issue being the pillar of democracy and one indispensable to the society. They need not comply with the ordinance. Freedom of expression enshrined in the US constitution would come to their rescue.Yellow pages industry is worried, not because the product is extinct or bankable no more,but its organic growth is struck with impediments which are beyond its control and purview.
THE IMPACT OF THE SEATTLE ORDINANCE IN GULF
Yellow Pages companies in Gulf Asian regions are closely monitoring the implications of the Ordinance. The issue may be debated in the UN once taken up by any member nation who relentlessly promote Green Environment. Many countries shall become the signatories in future. The compulsions from the international community may force other nations also to follow the suite.
UAE is spared for the moment-- being a non signatory to the treaty on the sustainable use of environments and it Monarchic nature is surely a game stopper. Law applicable in UAE permits no one either Resident or Citizens of UAE to approach any Court here for developing this kind of law. They also cannot challenge the rule even if it is proclaimed as a decree at a later date. UAE doesn't have a comprehensive and written constitution like US or India. Fundamental rights are something unheard of. Public demand and and compulsion are out of question since it has no audience here.
The situation is both Good and Bad for Yellow Pages companies here. GOOD, for the simple reason that the yellow pages companies should waste no time to plan and develop a sustainable business model favourable to the environment. It is BAD, since the profits and revenue are affected at least in the short term.
Be glad that the Print to On line transition is now gaining momentum in UAE before any decree is made in the line with or similar to SEATTLE ORDINANCE urging companies to comply with clean environment terms.Yellow Pages companies are aware of this and I'm sure will eventually adapt to the challenges in place.
Antony Konnoth
bizsense.blogspot.com
Finally, I have got a straight topic specific to my own industry to jot down few inputs with my legal pen. The topic may now have been an already notified subject to many of my colleagues and friends in the industry . This posting is solely intended to those who are interested in some serious readings to know in detail about the announced Ordinance in the US, limiting the reach and usage of Yellow Pages particularly in the city of Seattle in Washington, and the likelihood of being implemented in other US states and finally its impact in the Gulf Asian regions.
City of Seattle is familiar to most of us being spotted as the Head Quarters of the corporate giant Boeing ( HQ Now in Chicago).This legislation Per Se could cost the yellow pages industry billions of Dollars. Furthermore it could even spread to other continents. I won't be surprised if a similar kind of legislation creeps into some of the legislative domains of the Middle East countries in the near future. Though it is cliché to say 'Middle East catches cold when US sneezes' the usage still amuse people.
SEATTLE ORDINANCE - A BACK TRACK
US have an impeccable history as the paradise of right's activist and freedom fighters. Anyone who is deprived by the acts or deeds of any other individual, state or business can sue them in the Court of Law for an appropriate remedy and may reinstate the rights. Usually these kinds of actions are mostly initiated either by some activist group or politicians to gain popularity and recognition. The alternative step being, one can individually or by forming groups could approach the authorized representatives of the state or any Senate member for initiating draft legislation . Council members can also initiate these kinds of legislations citing the public interest involved. Once the final draft is made ( Around 14 drafts were prepared before finalizing the Seattle Ordinance) the paper is put forth in the Council for ratification. Once it gains the support of the majority it will be considered as the law in force either with immediate effect or later application . Environment is a popular issue now with many US politicians and they usually leave no stone unturned to achieve their objective. It is no surprise that the issue was taken up with full vigour and steam by the Seattle City Council.
In the mentioned case, Seattle City Council has passed an Ordinance forcing the Yellow Pages companies to cut down the number of books being published / printed keeping in mind of the environmental concerns. The ordinance also imposes certain regulations and fees to yellow pages companies. It requires the publisher to pay $100 as license and $0.14 per book and $148 per ton towards advance recovery fees. What the legislation aims is to collect the cost of recovering, recycling and disposing of the old copies from the Yellow Pages companies once the new edition is released. The Seattle city council is trying to set up a model where the producer, rather than the community, pays for the cost of recycling the products. Books becoming muncipal waste and eventually reaching as landfill were a great concern with many states.
It is speculated that if this model is adopted, three of the major Yellow Pages companies in US like AT &T, Super Media & Yellow Book would end paying more that half a million dollars yearly as expense alone. Advance recovery fees would be $10 billion if other 20 major publishers in US join the fray.
A suit is filed in the district court of Washington by Dex One, SuperMedia and Yellow Pages Association (YPA) challenging the ordinance citing the violation of interstate trade and privacy rights of Seattle residents. Subsequent to this suite a new website http://www.yellowpagesoptout.com/ is also created by the association for providing the residents to opt out from the yellow pages distribution network. Those who prefer not to receive Yellow Pages annually can log on to the site and opt out without citing any reason or explanation. This brave move is intended to get a favourable decision from the judiciary though the final out come is uncertain. Judges have ample discretion on environmental matters. To please community watch dogs many publishers are now trying to recall their other language editions from the press. The Spanish language variants published until now by some US YP companies intended for the ethnic segment got a huge blow below their belt. The grapevine is that the editions are now off press to save millions.
Publishers have also started using new ink which is non toxic for the printing job. The selection of paper are now from wood chip pulp intended to considerably reduce the mass felling of trees and eventually making the used paper easily recyclable and decomposable too. Yellow Pages users are divided on this issue. Many find online content satisfying their need and search requirements. But Majority still expect the yellow book on their desk as a reference source and possibly may be to continue experiencing the classic search method.
Winning a suit at the District Court of Washington may not be a difficult task for the consortium but there is a high probability that its contentions will be rejected by superior Courts since major environmental issues are involved here. The strange part is that News papers and magazines are exception by law on this issue being the pillar of democracy and one indispensable to the society. They need not comply with the ordinance. Freedom of expression enshrined in the US constitution would come to their rescue.Yellow pages industry is worried, not because the product is extinct or bankable no more,but its organic growth is struck with impediments which are beyond its control and purview.
THE IMPACT OF THE SEATTLE ORDINANCE IN GULF
Yellow Pages companies in Gulf Asian regions are closely monitoring the implications of the Ordinance. The issue may be debated in the UN once taken up by any member nation who relentlessly promote Green Environment. Many countries shall become the signatories in future. The compulsions from the international community may force other nations also to follow the suite.
UAE is spared for the moment-- being a non signatory to the treaty on the sustainable use of environments and it Monarchic nature is surely a game stopper. Law applicable in UAE permits no one either Resident or Citizens of UAE to approach any Court here for developing this kind of law. They also cannot challenge the rule even if it is proclaimed as a decree at a later date. UAE doesn't have a comprehensive and written constitution like US or India. Fundamental rights are something unheard of. Public demand and and compulsion are out of question since it has no audience here.
The situation is both Good and Bad for Yellow Pages companies here. GOOD, for the simple reason that the yellow pages companies should waste no time to plan and develop a sustainable business model favourable to the environment. It is BAD, since the profits and revenue are affected at least in the short term.
Be glad that the Print to On line transition is now gaining momentum in UAE before any decree is made in the line with or similar to SEATTLE ORDINANCE urging companies to comply with clean environment terms.Yellow Pages companies are aware of this and I'm sure will eventually adapt to the challenges in place.
Antony Konnoth
bizsense.blogspot.com
Saturday 11 December 2010
QATAR BAGS FOOTBALL WC VENUE, NOW UAE EYES HOSTING OLYMPICS.
OIL & GAS JOKES ?
All of us knew QATAR was relentlessly trying for some big events to showcase its image to the world. Many say this was actually intended to show other Arab countries in the region. Qatar was predominantly down rated by fellow peers despite its GDP growth and gas reserves. The time has come for the nation to act. It showed up with a bang. World Cup football is coming to Gulf. Kudos to Al Thani family- the present ruling family of Qatar.
An event of this sort is the first of its kind in the region. Accolades were cabled from other Arab countries by their top honchos. Many had in fact restricted the appreciation only to some formal exchanges of words. International media aired some dissenting notes to the actual fallout. No doubt ,countries like England, US and Japan are dissapointed. British PM, Mr.David Cameron even flew with football icon Beckham for a last minute pitch but to end up in vain ( not for 2022).
Year 2022 is a long way to go for a sports event like this. Other contestants who were missed out in the race are up in arms. Knowing the corrupt and dubious track record of FIFA there are credible reasons to belive it. All what we could garner is that the deal is squared of with absolute majority favoring Qatar, barring very few others. FIFA is all out to award the event for this region. Reason being, it want to take football out of the traditional turfs. Qatar was a perfect choice. But we did not see this vigor and enthu in the past years when ALGERIA and EGYPT had tried for hosting it but failed miserably. Never mind.. Football lovers in the region are elated. Expats have no qualms. Let the game of football win.
But there are other issues for Qatar. Despite its money reserves and on bound economic factors the infrastructure is challenging. It took several years for the gulf nations to understand that Oil & GAS alone will not make a nation prosper. Global Image too is paramount. The event hosting is an image building exercise. At least 12 full fledged stadiums are required to conduct the round matches. Qatar has just 4 and some with fewer facilities. They need to develop around 8 international stadiums from scratch. This is in addition to other practice match spots. On top of it the biggest challenge would be the scorching temperature. Qatar is really smart to convince the FIFA of its obligation to keep the temp below 27 degrees by installing cooling mechanisms inside the stadium. Technology is the King. There are unconfirmed reports that it had created a model stadium for the inspection of FIFA authorities. If these facts are to be believed, Qatar's 'never say die' attitude should be appreciated. It has dared to travel in an unknown path and left a trail for others to follow. It has banked on its experience too. Having hosted the under 19 foot ball world cup earlier also worked in favour for Qatar. We also cannot forget the adminstrative capability of Qatar while they conducted the Doha Asian Games. Almost $50 billion is budgeted for the world cup event and for other related business activites. Business is flocking to Qatar. All eying the multi billion dollar project annouced as part of the event.
All these success and efforts were ignored or sidelined in other parts of gulf region. The press too has taken sides.One of the major dailies of UAE, Khaleej Times did not even print the announcement in its front page. It has kept instead few columns in the sport page considering as a under rated news. Gulf news did the opposite. There was a front page news coverage with some stunning phots. But others restricted the news only to its editorials.
UAE should be in a dilemma. No second thoughts on that. The face of Gulf was expecting the event to miss the region by all means. The news was stunning. Another nation in this region has stolen the mantle to host an international event. This is good for football lovers but bad for nation like UAE atleast business wise. Tourism was predominantly focused to Dubai (business tourism), Muscat (Nature tourism) and Saudi ( relegious tourism). Sports tourism is something never ventured out or figured. UAE has recently started to explore this business model. Formula One (just concluded), International Cricket Matches ( Pakistan is the permanent opponent for any one day !), FIFA club matches ( starting soon) are some events in their kitty. More tourist would flow than in any other season when a sports event having substantial news making capability takes place. Hotel occupancy ratio is high than any other times. The rates are premium. They would make 3 times more money than in any other season. Other business opportunities are aplenty.
To counter this or not ,UAE is now weighing the possiblity of bidding for 2020 Olympics. One advantage is that the event shall take place in 2020, two years ahead of Qatar World Cup. The nation could take a first mover advantage. Olympics is for all and not restricted to just one sports. A global viewership is certainly guarenteed. Image make over is in place. All would vouch that UAE is struggling to keep its image with other GCC nations as the most vibrant and happening place. It can't digest another gulf nation taking the place once it has occupied and dominated. UAE may not have any animosity with her fellow nations. But its business case proves otherwise. It's a competitive world. Sustaining one's glory is an ever challenging job. UAE is simply exercising that option.
It just heard the good news from FIFA chief Mr. Sepp Blatter that Qatar could consider giving the opportunity for her neighbours in the region too for hosting some of the world cup matches. One or two matches in UAE? Well anything could happen.
All expats in this region is curious. They have sets their eyes glued to media for this. Let's hope both nations shall exibit some great sportsmanship for the world to cherish.
Antony Konnoth
bizsense.blogspot.com
All of us knew QATAR was relentlessly trying for some big events to showcase its image to the world. Many say this was actually intended to show other Arab countries in the region. Qatar was predominantly down rated by fellow peers despite its GDP growth and gas reserves. The time has come for the nation to act. It showed up with a bang. World Cup football is coming to Gulf. Kudos to Al Thani family- the present ruling family of Qatar.
An event of this sort is the first of its kind in the region. Accolades were cabled from other Arab countries by their top honchos. Many had in fact restricted the appreciation only to some formal exchanges of words. International media aired some dissenting notes to the actual fallout. No doubt ,countries like England, US and Japan are dissapointed. British PM, Mr.David Cameron even flew with football icon Beckham for a last minute pitch but to end up in vain ( not for 2022).
Year 2022 is a long way to go for a sports event like this. Other contestants who were missed out in the race are up in arms. Knowing the corrupt and dubious track record of FIFA there are credible reasons to belive it. All what we could garner is that the deal is squared of with absolute majority favoring Qatar, barring very few others. FIFA is all out to award the event for this region. Reason being, it want to take football out of the traditional turfs. Qatar was a perfect choice. But we did not see this vigor and enthu in the past years when ALGERIA and EGYPT had tried for hosting it but failed miserably. Never mind.. Football lovers in the region are elated. Expats have no qualms. Let the game of football win.
But there are other issues for Qatar. Despite its money reserves and on bound economic factors the infrastructure is challenging. It took several years for the gulf nations to understand that Oil & GAS alone will not make a nation prosper. Global Image too is paramount. The event hosting is an image building exercise. At least 12 full fledged stadiums are required to conduct the round matches. Qatar has just 4 and some with fewer facilities. They need to develop around 8 international stadiums from scratch. This is in addition to other practice match spots. On top of it the biggest challenge would be the scorching temperature. Qatar is really smart to convince the FIFA of its obligation to keep the temp below 27 degrees by installing cooling mechanisms inside the stadium. Technology is the King. There are unconfirmed reports that it had created a model stadium for the inspection of FIFA authorities. If these facts are to be believed, Qatar's 'never say die' attitude should be appreciated. It has dared to travel in an unknown path and left a trail for others to follow. It has banked on its experience too. Having hosted the under 19 foot ball world cup earlier also worked in favour for Qatar. We also cannot forget the adminstrative capability of Qatar while they conducted the Doha Asian Games. Almost $50 billion is budgeted for the world cup event and for other related business activites. Business is flocking to Qatar. All eying the multi billion dollar project annouced as part of the event.
All these success and efforts were ignored or sidelined in other parts of gulf region. The press too has taken sides.One of the major dailies of UAE, Khaleej Times did not even print the announcement in its front page. It has kept instead few columns in the sport page considering as a under rated news. Gulf news did the opposite. There was a front page news coverage with some stunning phots. But others restricted the news only to its editorials.
UAE should be in a dilemma. No second thoughts on that. The face of Gulf was expecting the event to miss the region by all means. The news was stunning. Another nation in this region has stolen the mantle to host an international event. This is good for football lovers but bad for nation like UAE atleast business wise. Tourism was predominantly focused to Dubai (business tourism), Muscat (Nature tourism) and Saudi ( relegious tourism). Sports tourism is something never ventured out or figured. UAE has recently started to explore this business model. Formula One (just concluded), International Cricket Matches ( Pakistan is the permanent opponent for any one day !), FIFA club matches ( starting soon) are some events in their kitty. More tourist would flow than in any other season when a sports event having substantial news making capability takes place. Hotel occupancy ratio is high than any other times. The rates are premium. They would make 3 times more money than in any other season. Other business opportunities are aplenty.
To counter this or not ,UAE is now weighing the possiblity of bidding for 2020 Olympics. One advantage is that the event shall take place in 2020, two years ahead of Qatar World Cup. The nation could take a first mover advantage. Olympics is for all and not restricted to just one sports. A global viewership is certainly guarenteed. Image make over is in place. All would vouch that UAE is struggling to keep its image with other GCC nations as the most vibrant and happening place. It can't digest another gulf nation taking the place once it has occupied and dominated. UAE may not have any animosity with her fellow nations. But its business case proves otherwise. It's a competitive world. Sustaining one's glory is an ever challenging job. UAE is simply exercising that option.
It just heard the good news from FIFA chief Mr. Sepp Blatter that Qatar could consider giving the opportunity for her neighbours in the region too for hosting some of the world cup matches. One or two matches in UAE? Well anything could happen.
All expats in this region is curious. They have sets their eyes glued to media for this. Let's hope both nations shall exibit some great sportsmanship for the world to cherish.
Antony Konnoth
bizsense.blogspot.com
Saturday 4 December 2010
Is CANADA finding foe in UAE or vice versa?
This is one big question among many gathering steam in the minds of many expats who are living in UAE. If the diplomatic sources are to be believed the issue is getting hotter as days goes by. Lately,Financial Times (FT) and other prominent international dailies has revealed some interesting facts which is worth pondering. I am sure many of us knew this information and the news before hand.
Etihad and Emirates being the top airline companeis in UAE were flying 3/7 to the Canadian capital. They were supposedly incurring substantial loss since flights were operating only for 3 days in a week despite their full operational capacity. The crew and support staff has to locate in Canada even for those non operating days in a particular week and subsequently pay for their stay and bear operational expense. The airline companies were demanding in full steam for more landing rights for the rest of the days in a week. No doubt If they could garner the lost days to their productive list by flying they could perform much better. At least this the reason aired by Mr Tim Clark the president of the Emirates. I am convinced, it sounds a business case here. Ethihad doesn't beg to differ ( Let us hope Mr.James Hogan CEO- Ethihad, shall vouch for it). But Canadian authorities are not willing to budge. Let us presume that they have their own reasons.
UAE is upset as like any other nation in such a scenario. If defence sources are to be trusted UAE was providing a military kind of base for Canada in her land to accomplish some military committments put forth by NATO and UN. Not forgetting here the compulsion and consent of Uncle Sam (US). Now this facility stands withdrawn by UAE or atleast now in the process of declining further base/stay. Canada view this as retaliatory step by UAE for declining more landing rights to the two airlines.
Canadian PM Mr. Stephen Harper and foreign minister Mr. Lawrence Cannon have a dissenting view. Almost 27000 Canadian nationals residing in UAE are taking sides. At least many of them want Emirates and Ethihad to operate daily to Toronto and other locations. They might have not considered the position of Air Canada and the purported protectionist policy of the Canadian government. Convenience matters. Canadians are no exception! We agree.
ExIm and trading is effected now. UAE and Canada were regarded as long standing trading partners and the business transations are worth billions. The business community has started lobying for an amicable settlement. At least they know it their money is at stake than anyone esle.
The paramount question is can a nation decline the continuance of a military base of another country in its land allowed years back based on the common trust and other security reasons for some trivial reason like decling extra landing rights to its airline companies in the other country? Landing rights or Military base - Which has more weightage? Let the prudent men decide.
Etihad and Emirates being the top airline companeis in UAE were flying 3/7 to the Canadian capital. They were supposedly incurring substantial loss since flights were operating only for 3 days in a week despite their full operational capacity. The crew and support staff has to locate in Canada even for those non operating days in a particular week and subsequently pay for their stay and bear operational expense. The airline companies were demanding in full steam for more landing rights for the rest of the days in a week. No doubt If they could garner the lost days to their productive list by flying they could perform much better. At least this the reason aired by Mr Tim Clark the president of the Emirates. I am convinced, it sounds a business case here. Ethihad doesn't beg to differ ( Let us hope Mr.James Hogan CEO- Ethihad, shall vouch for it). But Canadian authorities are not willing to budge. Let us presume that they have their own reasons.
UAE is upset as like any other nation in such a scenario. If defence sources are to be trusted UAE was providing a military kind of base for Canada in her land to accomplish some military committments put forth by NATO and UN. Not forgetting here the compulsion and consent of Uncle Sam (US). Now this facility stands withdrawn by UAE or atleast now in the process of declining further base/stay. Canada view this as retaliatory step by UAE for declining more landing rights to the two airlines.
Canadian PM Mr. Stephen Harper and foreign minister Mr. Lawrence Cannon have a dissenting view. Almost 27000 Canadian nationals residing in UAE are taking sides. At least many of them want Emirates and Ethihad to operate daily to Toronto and other locations. They might have not considered the position of Air Canada and the purported protectionist policy of the Canadian government. Convenience matters. Canadians are no exception! We agree.
ExIm and trading is effected now. UAE and Canada were regarded as long standing trading partners and the business transations are worth billions. The business community has started lobying for an amicable settlement. At least they know it their money is at stake than anyone esle.
The paramount question is can a nation decline the continuance of a military base of another country in its land allowed years back based on the common trust and other security reasons for some trivial reason like decling extra landing rights to its airline companies in the other country? Landing rights or Military base - Which has more weightage? Let the prudent men decide.
Monday 22 November 2010
My Trip to Oman and some fascinating business facts
Recently I have been to Oman for a leisure trip but found some amazing facts which I think should be shared to all who are keen on economic matters specific to GCC region.
Drive to Oman was truly a fun filled experience and very much longing especially with my family after some hectic work in Dubai. The journey was a lengthy one being held up at the border for 5 hours just to obtain the tourist visa. Blame it on the holidays declared at this part of the region. Dubai vehicles loaded with people were a common sight on the roads. The highway to Oman is just awesome and a clog free drive was an experience. Having being maintained the greenery on sides throughout the highway is something one should envy of. Kudos to the authorities who have done a marvellous job though it was meant to attract the visitors expressly.
Now straight to business. At one go you won't find any high raises or structures in Muscat. I realised that Oman has chosen to grow horizontally than vertical, being gifted with abundant land with fertile regions. Not to forget that it is next to Saudi in land area. I was wrong in under estimating that the infrastructure is less developed in Oman compared with other GCC countries. It's wise for a nation like Oman not to invest money on tall buildings and artificially jack up the prices or intentionally create scarcity of dwelling / commercial spaces.
It's also worth to note that the country is focused now to increase their non oil revenue from 20:80 to 30:70. Certainly a good move considering the fact that the intended ratio is maximum since oil and gas is the back bone of its economy and cannot be forgotten. A 10% is a brave move towards de risking its dependence on gas.
Our visit to Oman was coincided with the national day. The whole street was decked with flex of HH Qaboos, the current ruler of Oman. The streets were lit with color neons to mark the celebration. A night drive too was equally thrilling. Needless to mention here that Oman is gifted with some virgin beaches for a fun filling day out. Qurom beach, around 6KM from the city is simply awesome with its natural beauty.
His Highness Sultan Qaboos is very keen to develop the education sector. His recent announcement to provide millions worth scholarship for the higher education of the students is equally encouraging and commendable. Tourism is another area were some major developments are happening. No doubt the nature is on their side. Sun kissed deserts, wadis and green misty mountains are enthralling for any visitor.
I was told that couple of years back Oman was literally thrown out of map by floods. Most of its structures and roads were vanished. Even now you could see red poles warning the drivers on water level indication throughout in a highway. But after few years Oman was back on track and any one now could hardly notice the scar. HH Sultan Qaboos is now an international figure being at No.10 among the most influential Arab personalities.
Commodities barring fuel seems to be on a higher side. Food and essential items are no exception. But I could fill gas on an empty tank with just 5 RO (50 Dhs). In Dubai I should be paying nothing less than 75Dhs for a full tank of fuel in my small car.
What Dubai could learn from Oman is its consistent growth with planned strategies. Real estate is on a controlled path. Wave Muscat - a residential and commercial project in the city is promising and shall be released soon by authorities. Bookings are happening even now though many plots are sold out.
Oman is certainly growing in the right direction. The country never follows a 'me too' strategy. It's unique in every step. Sultan Qaboos is certainly proud of his country. His fellow subjects are too happy and still cherish the fact that he opened the democratic doors by enabling the selection of the representatives by election to the Majlis. By shedding some of its conservative approach Oman could be a super power among the GCC countries in the near future.
Drive to Oman was truly a fun filled experience and very much longing especially with my family after some hectic work in Dubai. The journey was a lengthy one being held up at the border for 5 hours just to obtain the tourist visa. Blame it on the holidays declared at this part of the region. Dubai vehicles loaded with people were a common sight on the roads. The highway to Oman is just awesome and a clog free drive was an experience. Having being maintained the greenery on sides throughout the highway is something one should envy of. Kudos to the authorities who have done a marvellous job though it was meant to attract the visitors expressly.
Now straight to business. At one go you won't find any high raises or structures in Muscat. I realised that Oman has chosen to grow horizontally than vertical, being gifted with abundant land with fertile regions. Not to forget that it is next to Saudi in land area. I was wrong in under estimating that the infrastructure is less developed in Oman compared with other GCC countries. It's wise for a nation like Oman not to invest money on tall buildings and artificially jack up the prices or intentionally create scarcity of dwelling / commercial spaces.
It's also worth to note that the country is focused now to increase their non oil revenue from 20:80 to 30:70. Certainly a good move considering the fact that the intended ratio is maximum since oil and gas is the back bone of its economy and cannot be forgotten. A 10% is a brave move towards de risking its dependence on gas.
Our visit to Oman was coincided with the national day. The whole street was decked with flex of HH Qaboos, the current ruler of Oman. The streets were lit with color neons to mark the celebration. A night drive too was equally thrilling. Needless to mention here that Oman is gifted with some virgin beaches for a fun filling day out. Qurom beach, around 6KM from the city is simply awesome with its natural beauty.
His Highness Sultan Qaboos is very keen to develop the education sector. His recent announcement to provide millions worth scholarship for the higher education of the students is equally encouraging and commendable. Tourism is another area were some major developments are happening. No doubt the nature is on their side. Sun kissed deserts, wadis and green misty mountains are enthralling for any visitor.
I was told that couple of years back Oman was literally thrown out of map by floods. Most of its structures and roads were vanished. Even now you could see red poles warning the drivers on water level indication throughout in a highway. But after few years Oman was back on track and any one now could hardly notice the scar. HH Sultan Qaboos is now an international figure being at No.10 among the most influential Arab personalities.
Commodities barring fuel seems to be on a higher side. Food and essential items are no exception. But I could fill gas on an empty tank with just 5 RO (50 Dhs). In Dubai I should be paying nothing less than 75Dhs for a full tank of fuel in my small car.
What Dubai could learn from Oman is its consistent growth with planned strategies. Real estate is on a controlled path. Wave Muscat - a residential and commercial project in the city is promising and shall be released soon by authorities. Bookings are happening even now though many plots are sold out.
Oman is certainly growing in the right direction. The country never follows a 'me too' strategy. It's unique in every step. Sultan Qaboos is certainly proud of his country. His fellow subjects are too happy and still cherish the fact that he opened the democratic doors by enabling the selection of the representatives by election to the Majlis. By shedding some of its conservative approach Oman could be a super power among the GCC countries in the near future.
Friday 5 November 2010
It seems Emirates (Airline company) is flying too high!
EMIRATES v ETISALAT
Emirates have started up like a small aviation company with just 2 Air crafts borrowed from (PIA)Pakistan International airlines. The recent P&L (Profit & Loss) statement shows it has a whooping $ 3.2 billion as profits. An extra billion compared with the overall profits of the telecommunication mammoth Etisalat. How do these corporates make these profits all year( or decade) round? All I could cherish is Emirates didn't had a piggie back ride like Etisalat on a monopoly pitch. But it always had a sovereign clout to boast of. Oil boom era, surplus oil reserves and subsidized rates et al provided a non turbulent sky ride. Oil was selling for $18 a barrel then ! Geographical position of Dubai and its easy access to Europe & Asia ( Other continents too) alike made this a fun ride.
There were customers who are ready to shell more money for a quality sky experience. There were business reasons to do it. Dubai was considered as the business hub. Bahrain somehow hold its blanket as the regions financial hub (Dubai may refute it). How long does this fun ride continue? All I can say is as long as they keep their customers happy. Are they doing it? At least some media reports and customer survey proves otherwise. No doubt the flight load factor keeps better with more happy customers in place. Once averse to budget and economy pricing have started thinking on similar line by introducing FLY DUBAI. Has the airline kept up its motto of low rates is something yet to be heard of.
Thanks for your reading.
Saturday 23 October 2010
Etisalat Profit Decline
MONOPOLY- BOON OR BANE?
Recently I have come across an article in a leading Arab daily on the Q3 results of Etisalat. The stats shows a drastic decline in the profits of Etisalat in UAE. 1.75 bn from 2.25 bn a year back. They have ample reasons for it but a simple math wont support the claim. Study shows the decline in profit share is due to the aggressive marketing of Du in the region.
The stats is an eye opener for Etisalat. An Expat in this region would tell how the monopolistic approach of Etisalat have hampered the ambition of a common man to be in touch with his/her people in the other part of the world.. The call charges were exorbitant and was considered to be the highest among in the region or perhaps in the world.
In India we have authorities to take care of the exploitation of market by corporates. Monopoly & Restrictive Trade Practise (MRTP) laws are in place for a check and balance. Hope some restrictive laws would be in place in this region too.....
Solicit your comments.
Recently I have come across an article in a leading Arab daily on the Q3 results of Etisalat. The stats shows a drastic decline in the profits of Etisalat in UAE. 1.75 bn from 2.25 bn a year back. They have ample reasons for it but a simple math wont support the claim. Study shows the decline in profit share is due to the aggressive marketing of Du in the region.
The stats is an eye opener for Etisalat. An Expat in this region would tell how the monopolistic approach of Etisalat have hampered the ambition of a common man to be in touch with his/her people in the other part of the world.. The call charges were exorbitant and was considered to be the highest among in the region or perhaps in the world.
In India we have authorities to take care of the exploitation of market by corporates. Monopoly & Restrictive Trade Practise (MRTP) laws are in place for a check and balance. Hope some restrictive laws would be in place in this region too.....
Solicit your comments.
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