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Economic uncertainties within the GCC countries

Economic uncertainties within the GCC countries

Travel AND Tour World published on Monday, July 29, 2019, this article elaborating on the current tourism together with other types of related business activities in the Gulf region. Dubai with its impressive urban development, artificial islands and other coastline attractions has been for a time spearheading the regional shopping and business tourism. The recent economic uncertainties within the GCC countries as well as through the political movements of the US, the EU and all other heavyweights vested interests of the world economy seem to be behind this story.

Tourism slowdown in Dubai’s Jumeirah cuts 500 jobs

Economic uncertainties within the GCC countries

Due to a slowdown in the emirate’s tourism industry, Jumeirah Group has cut hundreds of jobs and according to people familiar with the industry, it weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel.

As per sources hundreds of jobs were slashed recently by the operators of Burj Al Arab along with 24 hotels worldwide.

As the information was private the government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs.

Jumeriah has more than 13,500 employees according to its website and most of the cuts were support roles.

The tourism sector is stalled causing Dubai’s hotels to struggle and the occupancy level was found to be the lowest during the second quarter since 2009.

The average daily rates and revenue available per room fell to 2003 levels as stated by STR, a global hotel data provider.

There has been an oversupply due to new opening ahead of the 2020 World Expo.

The geopolitical tensions, relatively low oil prices, the ongoing real estate and the retail slump has caused Dubai-based companies and real estate developer and banks to cut down their staffs.

New measures have been introduced by the Dubai government to stimulate the economy by lowering business fees and providing long-term visas.

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International Cooperation for Sustainable Development

International Cooperation for Sustainable Development

The Peninsula, a daily of Qatar, elaborated as follows on July 9, 2019, on the Qatari role of international cooperation for sustainable development

Whereas Qatar was taken by surprise on June 5th, 2017, the international community was impressed by Qatar’s composed and firm stance in the face of the blockade and continued provocations of the blockading countries. Maturity of the Qatari diplomacy has since gripped global attention, courted international approbation, and most importantly, captured hearts and minds of Qataris into solidarity. A growing reverence for Qatar’s foreign policy and its key figures is unmistakable both domestically and abroad.

A less celebrated side of Qatar’s international role is that of sustainable development. Hundreds of resolutions and decisions are adopted yearly by the General Assembly, the Security Council and the Economic and Social Council of the UN, enacting and promoting sustainable development goals. Overall, the tie-ins between international cooperation and sustainable development are growing more reciprocal and symbiotic. 

This is evinced by the Millennium Declaration, the Johannesburg Declaration and the thousands of bi/multilateral treaties that have followed on from the UN Conference on Environment and Development in 1992. Since then, sustainability and sustainable development have become the watchwords for international bodies, most prominently the European Commission, the World Bank Group, the G-20 and obviously the UN, so much so they established dedicated offshoot organizations. Continuing to reaffirm commitment to the international community, Qatar has lived up to the (arguably) very ambitious agenda of sustainable development set in 2015.

Largely via Qatar Investment Authority (QIA) and Qatar Fund for Development (QFFD), Qatar has assumed the mantle of financiering, especially for the past several years. Qatar generously funds not-for-profit, philanthropic deeds in development assistance as well as investments in sustainable development. 

View of West Bay, Doha

In one year, 2018, QFFD disbursed more than $500m to hundreds of humanitarian and developmental projects in 70 countries across the world; funding natural disaster relief and recovery in the Caribbean, roadbuilding in the Horn of Africa, microfinancing SMEs in the Muslim World, and rehabilitating healthcare facilities in Arab countries, to name a few. 

QIA, on the other hand, ensures sustainable economic prosperity of Qataris for generations to come by investing in sustainable and profitable ventures worldwide. The $10bn pledged for US infrastructure enhancement and the £5bn for British infrastructure are examples of Qatari investments in international sustainable development.

We are yet to see all of these Qatari accomplishments and financial means complemented and popularised byways of active participation and close engagement with international bodies to further promulgate Qatar’s established role in global sustainable development. Young, well-educated Qataris are now more than ever capable of taking part in the sophisticated, pluralistic discourse on climate change, environmental protection, circular economy, wealth equality and social justice; hot sustainability topics that are increasingly gaining steam in international dialogue. In promoting sustainability and sustainable development, Qatari youth have HH Sheikha Moza bint Nasser as the role model to follow, especially with the recent designation of Her Highness as UN Sustainable Development Goals Advocate.

Domestically, international agreements have been coordinated with Qatari laws and regulations. This harmonisation process is best exemplified by the synchronization of the UN 2030 Agenda for Sustainable Development, Qatar National Vision (QNV) 2030 and the resultant quinquennial National Development Strategies. Qatar facilitated the UN Voluntary National Review of the country’s 2030 Agenda for Sustainable Development to acquire international credibility of implementation. Many nations are still lagging in setting and/or implementing sustainable development goals.

Following the onslaught of the blockading countries against Qatar, strong local faculties in sustainable development would call attention to ways the blockade hinders international cooperation intended to foster sustainable development; and they are many. 

The mere act of obstructing transportation to/from Qatar by stifling international transit corridors is condemnable as it violates the General Assembly’s Resolution 69/213 propositioned by the Secretary-General’s High-level Advisory Group on Sustainable Transport.

Qatar is building educational, governmental and diplomatic capabilities to navigate organizational and intergovernmental synergies of sustainable development. And as sustainable development organizations grow more influential in shaping major international accords, frameworks, standards and policies, Qatari representation is essential to preserve our state’s interest. 

Luckily, collective intelligence in Qatar has recognised that reinforcing alliances and partnerships through concerned UN agencies, and other organizations such as IFC and OECD can very much help perpetuate Qatar’s stability amidst the perils of the region.

Whether we are bracing for more seismic shifts in our regional geopolitics, more chasms, or for that matter, expecting rapprochements, sustainable development remains key to continued Qatari prosperity.

Dr Soud Khalifa Al-Thani is Sustainability Director at ASTAD.

Make your Linguistic Skills even more Powerful

Make your Linguistic Skills even more Powerful

If you’re reading this, you have quite a powerful language. There are 1.5 billion global English speakers – the most spoken language in the world. Why not make your linguistic skills even more powerful by learning other strategic languages? It’s always useful to learn aspects of a language while traveling – phrases in German, French, Italian, Greek and Romanian for your trip across Europe, perhaps. But there are a handful of languages that would be wise to learn, especially as a frequent traveler. Here are the three most useful second languages as per

3 Most Useful Second Languages

Arabic

Make your Linguistic Skills even more Powerful
Credit: Juan Ci/Shutterstock

There are at least 315 million native and non-native speakers in the Arab world, making it the fifth most spoken language in the world. With it, traveling to the Middle East and parts of Africa and Asia is so much simpler (especially since the written language is so different from English lettering). Arabic is the official language of Jordan, Morocco, Saudi Arabia, and a few dozen other countries. It’s also the liturgical language of the Muslim population (around 1.5 billion people), making it highly important to religious scholars and those with an interest in the topic.

Spanish

Make your Linguistic Skills even more Powerful
Credit: Photographee.eu/Shutterstock

Every traveler likely knows a tiny bit of Spanish, but with so many Spanish-speaking countries, it’s a no-brainer to learn in an effort to make your trips easier and more rewarding. There are about 400 million nature speakers in countries around the globe: Argentina, Bolivia, Cuba, El Salvador, Guatemala and, of course, Spain, just to name a few. It’s universally recognized as useful, as it’s the third most studied language in the world behind English and French.

Mandarin Chinese

Make your Linguistic Skills even more Powerful
Credit: Toa55/Shutterstock

If you want to interact with 1.1 billion or so people, you’re going to have to do so in Mandarin Chinese, nearly a billion of which are native speakers. China is expected to become the world’s leading economy by 2050. If you’re in business, it’s a must-know language. It would at least be extremely useful as the country’s worldwide influence increases.

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Could OPEC play second fiddle to US’s oil boom?

Could OPEC play second fiddle to US’s oil boom?

With America’s oil boom, OPEC is stuck in retreat as demonstrated in this June 11, 2019, post of CNN’s. The MENA mainstream media are shouting: Could OPEC play second fiddle to US’s oil boom? In any case, a new world order seems to be taking shape with respect to the world’s energy generation, production and trade.

In the meantime, here is CNN’s view on this seemingly fight between Shale and conventional fossil fuel type of commerce.

Could OPEC play second fiddle to US’s oil boom?

America’s oil boom will break more records this year. OPEC is stuck in retreat

By Matt EganCNN Business

New York (CNN Business) The epic American oil boom is just getting started. OPEC, on the other hand, is stuck on the sidelines. US oil production is on track to spike to a record 13.4 million barrels per day by the end of 2019, according to a recent report by energy research firm Rystad Energy. Texas alone is expected to soon top 5 million barrels per day in oil production — more than any OPEC member other than Saudi Arabia. Oil plunges back into bear market The surge in American barrels — led by the Permian Basin in West Texas — has offset oil blocked by US sanctions on Venezuela and Iran. But all of that US oil is also contributing to a supply glut that last week sent crude into another bear market. OPEC has been forced to scale back its output — a trend that could continue as the cartel tries to prop prices back up. “We continue to see the Permian representing the key driver of global oil supply growth for the next five years,” Goldman Sachs analyst Brian Singer wrote to clients on Monday.

US daily output could soon top 14 million

The shale oil revolution has made the United States the world’s leading producer, surpassing Saudi Arabia and Russia. The ferocity of the US shale oil revolution has caught analysts off guard several times over the past decade. Rystad Energy ramped up its year-end US output forecast by 200,000 to 13.4 million barrels per day. In May, the United States likely produced a record 12.5 million barrels of oil per day, the firm added. All but four million of those barrels were from shale oilfields. That growth is expected to continue. The United States is on track to end 2020 by producing 14.3 million barrels per day, Rystad projects. That’s slightly higher than the firm previously estimated and nearly triple 2008’s output. Of course, analysts could have to rein in those blockbuster forecasts if oil prices crash significantly further. That would force American frackers to preserve cash and pull back on production.

OPEC’s production hits five year low

OPEC remains in retreat as the cartel tries to balance the market by putting a floor beneath prices. OPEC’s oil production tumbled to 29.9 million barrels per day in May, the lowest level in more than five years, Rystad said. OPEC output is down 2.6 million per day since October 2018 — the month before oil prices crashed into the last bear market. Khalid al-Falih, Saudi Arabia’s energy minister, said on Friday that OPEC is close to a deal to extend its production cuts. Those cuts, which Saudi Arabia has borne the brunt of, are due to expire at the end of June. The stock market is ‘spoiled’ by rate cuts” We think that OPEC will at least maintain its output cuts, and maybe even deepen them at their next meeting,” Caroline Bain, chief commodities economist at Capital Economics, wrote in a note to clients on Monday. Rystad dimmed its projection for Saudi Arabia’s oil production from 10.6 million barrels per day to 10.3 million.

Venezuela, Iran under pressure

OPEC’s output could be further hurt by problems in some of its member countries. Iran’s oil exports have plunged because of US sanctions. The years-long collapse of Venezuela’s oil industry has been accelerated in recent months by US sanctions and sprawling blackouts in the South American nation. “There appears little prospect of a recovery in output from Iran or Venezuela any time soon,” Bain wrote. Violence is also threatening oil production in Libya and Nigeria. All told, Rystad Energy estimates 1.3 million barrels per day of oil production is at risk in those four OPEC nations. “Risks to short-term supply are undoubtedly still plentiful,” Rystad analyst Bjørnar Tonhaugen said in the report.

Will crude slide below $50?

Despite all this, analysts aren’t predicting a spike in oil prices. If anything, forecasters are bracing for more pressure on prices, due in part to robust US production. Brent, which has tumbled about 15% since late April to $63 a barrel, should finish the year at around $60 a barrel, according to Capital Economics. The US economy is about to break a record. These 11 charts show why US oil prices, trading at about $54 a barrel, are down nearly 19% since late April. Recent selling has been driven by a spike in oil inventories that suggest demand for crude is deteriorating. Goldman Sachs said that a reversal in the oil demand metrics will be required to prevent US oil prices from sinking below the $50-$60 range.”Our real concern is over demand weakness,” consulting firm Facts Global Energy wrote in a report on Monday. “Have we entered an era where demand will keep falling and we have a lot more oil on our hands than expected?”

Despite a difficult business environment in Iran . . .

Despite a difficult business environment in Iran . . .

APO Group – Africa Newsroom / Press release informs that despite a difficult business environment in Iran . . . , 865 exhibitors from 21 countries present the entire value chain at Iran agrofood 2019. Here it is.

Despite difficult business environment in Iran, 865 exhibitors from 21 countries present the entire value chain at Iran AgroFood 2019

National pavilions of Brazil, China, Germany, India, Italy, Russia and Turkey

TEHRAN, Islamic Republic of Iran, June 5, 2019/APO Group/ —

Despite the currently difficult business environment in Iran, as many as 865 exhibitors from 21 countries will be presenting their products, solutions and technologies “from field to fork” at iran agrofood 2019. More than 40,000 trade visitors from all over Iran and neighbouring countries are again expected. Brazil, China, Germany, India, Italy, Russia and Turkey will be represented with official pavilions this year. iran agrofood consists of the five partial events iran agro, iran food + bev tec, iran bakery + confectionery, iran food ingredients and iran food + hospitality and has been organised by the German trade show specialists fairtrade (www.fairtrade-messe.de) and its Iranian partner Palar Samaneh (www.Palar-Samaneh.com). The 26th edition will take place from 18 to 21 June 2019 at the Teheran International Fairground.

The exhibitors come from Austria, Brazil, China, Denmark, Georgia, Germany, Greece, India, Indonesia, Iran, Italy, Mongolia, Netherlands, Poland, Russia, Slovakia, Spain, Switzerland, Tunisia, Turkey and the United Arab Emirates.

Seven official national pavilions

Brazil, China, Germany, India, Italy, Russia and Turkey are present at iran agrofood 2019 with official national pavilions. The Netherlands and Switzerland are represented through stands of their embassies.

Following the successful participations in 2017 and 2018, Brazil will again be present this year with an official pavilion at iran food + hospitality, organised by the Brazilian Embassy in Tehran. 10 Brazilian companies will present the finest meat, coffee and food from Brazil.

China participates with 19 exhibitors at iran food ingredients, iran food + hospitality and iran food + bev tec.

The official German Pavilion is presented by the German Federal Ministry for Economic Affairs and Energy, in cooperation with the Association of the German Trade Fair Industry (AUMA) and supported by VDMA Food Processing and Packaging Machinery. Altogether 15 German companies take part in iran food + bev tec & iran food ingredients.

Not less than 24 Indian exhibitors display their products at iran food ingredients & iran food + hospitality, supported by the India Trade Promotion Organisation ITPO, the Associated Chambers of Commerce & Industry of India ASSOCHAM, and the Cashew Export Promotion Council of India CEPCI.

For many years Italy has been one of the most important exhibitor nations at iran food + bev tec. While the Italian participation in recent years has been organized solely privately, the 2019 Italian participation featuring 22 Italian exhibitors is for the first time complemented by an official Italian pavilion with the support of the Italian Trade Agency ITA.

The Russian Federation presents itself for the first time at iran agro 2019 with two official pavilions. One from the Republic of Bashkortostan, Russia’s most populous republic. And another from the Kabardino-Balkar Republic in the North Caucasus. Both pavilions are officially supported by the Russian Export Center. A total of 9 Russian exhibitors will present technologies for agriculture, milk production and water treatment.

As in previous years, Turkey will again be officially represented this year at iran food + bev tec & iran food + hospitality. The Turkish pavilion with 11 exhibitors is supported by the Turkish Ministry of Trade.

The 26th edition will take place from 18 to 21 June 2019 at the Teheran International Fairground

Iran agrofood 2019 presents the entire value chain “from field to fork”

Iran agro 2019 – The agricultural event within iran agrofood

At iran agro 2019, 51 exhibitors from 6 countries (http://bit.ly/2Z24ysG) present adapted technologies and solutions for the Iranian market in the fields of crop production, agricultural technology and animal husbandry.  

Iran food + bev tec & iran bakery + confectionery 2019

331 exhibitors from 12 countries (https://bitly.is/2WdkWEJ) take part in iran food + bev tec & iran bakery + confectionery, a who-is-who of the international elite of food, bakery + confectionery, beverage and packaging technology.

Iran food ingredients 2019

70 exhibitors from 11 countries (http://bit.ly/31cyNz2) participate at iran food ingredients 2019, including many of the world’s leading suppliers.

Iran food + hospitality 2019

413 exhibitors from 10 countries (http://bit.ly/2WJU4Ax) present all of their latest food & beverage products and food service equipment at Iran’s leading trade show.

For more information:

Distributed by APO Group on behalf of Fairtrade Messe und Ausstellungs GmbH & Co. KG.

Pictures in high resolution can be requested by email.

Media Contact for Press:
fairtrade Messe GmbH & Co. KG
Ms Nadine Wagner
Public Relations
Kurfürsten-Anlage 36
D-69115 Heidelberg
Tel +49 / 62 21 / 45 65 22
n.wagner@fairtrade-messe.de
www.fairtrade-messe.de

Contact for Exhibitors:
fairtrade Messe GmbH & Co. KG
Mr Paul März
Project Management
Kurfürsten-Anlage 36
D-69115 Heidelberg
Tel +49 / 62 21 / 45 65 13
p.maerz@fairtrade-messe.de
www.fairtrade-messe.de

Contact Iran:
Palar Samaneh Co.
Ms Ladan Maleki
Apt.1, Amin Building (No.18) – Amini Alley
South Shiraz St.
Molasadra
IR – Tehran 14358-93681
Tel: +98 21 88 05 94 57
       +98 21 88 05 94 58
       +98 21 88 05 94 59
Fax: +98 21 88 04 48 17
palarsamaneh@gmail.com
www.Palar-Samaneh.com

fairtrade – Valuable business contacts:
fairtrade (www.fairtrade-messe.de) was founded by Martin März in 1991. Since long, fairtrade ranks among the leading organisers of professional international trade fairs in emerging markets, especially in North and Sub-Saharan Africa, the Middle East and Eastern Europe. Managed by its shareholder and his son Paul März and committed to the values of a family business and the team spirit, fairtrade maintains a powerful network of partnerships throughout the world. fairtrade organizes shows in the sectors Agrofood, CIT Solutions, Energy, Industry and PlastPrintPack and strives for a high level of customer satisfaction.

By means of innovative products and excellent service fairtrade organizes professional platforms for valuable business contacts between exhibitors and visitors. fairtrade is a member of UFI The Global Association of the Exhibition Industry and AAXO The Association of African Exhibition Organisers. The management is ISO 9001:2015 certified.

Palar Samaneh:
Based in Tehran Palar Samaneh (www.Palar-Samaneh.com) has organised over 50 international trade fairs of major importance in Iran over the past 10 years. Having played an important role in the growth of the Iranian trade fair market, Palar Samaneh makes use of this knowledge for the benefit of its customers.

In addition to their exhibition organization department, its stand building unit serves individual exhibitors as well as country pavilions all over the Middle East and the CIS-countries.

China’s Global Investments Declining Everywhere Except for the MENA

China’s Global Investments Declining Everywhere Except for the MENA

Foreign Policy’s INFOGRAPHIC published this article written by AFSHIN MOLAVI on May 16, 2019. It is about China’s Global Investments Declining Everywhere Except for the MENA as clearly showing in Three charts highlight Beijing’s growing interest in the Middle East and North Africa.

As Chinese President Xi Jinping concluded the latest high-level Belt and Road gathering of world leaders in Beijing last month, China’s signature project has seemingly entered a new phase: worldwide acceptance of the Belt and Road Initiative (BRI) as a fact of international life (like it or not). So, with the wind at its back, is China doubling down on its investments worldwide? Not exactly. The total value of China’s global investments and construction contracts actually fell by $100 billion in 2018, according to data analyzed from the American Enterprise Institute’s China Global Investment Tracker. Just about every region saw a significant decline in Chinese investment or construction projects except, surprisingly, for one: the Middle East and North Africa (MENA).

A flurry of Chinese investment and construction projects in the MENA region over the last three years has made it a key geoeconomic partner for Beijing. But surely, in pure volume terms, the MENA region could not have attracted as much Chinese economic activity as sub-Saharan Africa or East Asia, right? Think again. The MENA region ranked as the second-largest recipient of investment and Chinese construction projects worldwide after Europe in 2018, as the chart below shows.


MENA’s Growing BRI Clout

In 2018, the Middle East and North Africa leapfrogged other emerging markets as a destination for BRI projects.

SOURCE: AEI CHINA GLOBAL INVESTMENT TRACKER, 2005-2018; COMPILED AND CONCEIVED BY AFSHIN MOLAVI.

The MENA region ranked ahead of traditional BRI stalwarts East Asia and sub-Saharan Africa last year, recording $28.11 billion in new projects. The region still lags behind both those regions as a whole since the launch of BRI in 2013 and dating back to 2005, but a three-year surge has brought it in closer proximity to the top of the table. That could mean a windfall for Chinese state-owned construction companies as the majority of MENA projects involve construction, rather than foreign direct investment.

Of the 2018 MENA total, nearly three-quarters was targeted at Egypt, the United Arab Emirates, and Saudi Arabia. Those three countries also make up half of the “$20 billion club”—the group of countries with more than $20 billion worth of projects from China dating back to 2005.


Chinese Investment in MENA Countries

MENA countries with more than $20 billion worth of investment and construction projects by Chinese firms since 2005.

SOURCE: AEI CHINA GLOBAL INVESTMENT TRACKER, 2005-2018; COMPILED AND CONCEIVED BY AFSHIN MOLAVI.

The list here is heavily skewed toward regional oil producers, with the exception of Egypt, and most of China’s projects in the region involve construction rather than investment. Despite a recent setback, Chinese state-owned enterprises will likely play a prominent role in Egypt’s ambitious infrastructure program, including the building of a new, gleaming capital city just outside Cairo. Chinese construction companies were vitalin President Abdel Fattah al-Sisi’s ambitious Suez Canal economic zone project.

At the Belt and Road Forum last month, Chinese enterprises also announced a new $3.4 billion investment to build a trade hub for Chinese goods in Dubai’s Jebel Ali Port, as well as a manufacturing and processing hub for animal and agricultural products for the food industry. China’s dramatic ramp-up of projects in the UAE suggests that it sees the country as an important piece of its Belt and Road logistics network.

Other significant nodes of China’s economic footprint in the region are Israel ($12.19 billion), Kuwait ($10.43 billion), and Qatar ($7.27 billion), according to data analyzed from AEI’s China Global Investment Tracker for the years 2005-2018.

China is pouring a lot of concrete and cement into construction projects in the region but what of Middle East exports to China? How is China affecting the bottom line of key MENA states?

The answer broadly: If you have oil or gas, China is likely to be a major export destination.


Exports to China From MENA Countries

China has emerged as a vital export destination for several countries in the Middle East and North Africa. For these countries below, China made the top five in 2018.

SOURCE: IMF DIRECTION OF TRADE STATISTICS; COMPILED AND CONCEIVED BY AFSHIN MOLAVI.

Major oil and gas producers generate significant revenues from Beijing, and China ranks as the top export destination for Saudi Arabia, Iran, Kuwait, and Oman, according to an analysis of data from the International Monetary Fund’s Direction of Trade Statistics.

In some cases, key U.S. allies such as the UAE send nearly three times more exports to China than to the United States, and for Kuwait, Qatar, and Oman, the gap is even starker, with nearly eight times, nearly nine times, and nearly 28 times, respectively, more goods exported to China than to the United States.

For Saudi Arabia, the difference in 2018 was less stark, sending some 30 percent more exports to China than to the United States, according to an analysis of IMF data. Expect this gap to widen as the United States continues to ramp up domestic oil production.

Meanwhile, most North African countries still maintain an export profile heavily dependent on Europe rather than on China, and Israel sends four times more goods to the United States than to China.

You can expect this map to get to darker shades of red over the next decade, particularly as China’s demand for energy—especially natural gas—continues to grow.

Afshin Molavi is a senior fellow at the Foreign Policy Institute of Johns Hopkins School of Advanced International Studies and the editor and founder of the New Silk Road Monitor blog.