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Comment

A date with the great Satan

by Gareth Smith October 8, 2013
written by Gareth Smith

The phone call between Barack Obama and Hassan Rouhani at the United Nations, the first direct contact between presidents of Iran and the United States in three decades, signals the seizing of a chance to advance relations between the two countries and potentially open up debate over Iran’s nuclear program and US sanctions.

The earlier agreement between the US and Russia over Syria’s chemical arsenal had given Obama the opportunity to reach out to Iran while making it clear Washington regards Iran’s nuclear program as a far more serious potential threat.

The arrival of Hassan Rouhani as president has brought a shift in Iran’s policy towards Syria as well as the US. New foreign minister Mohammad Javad Zarif spoke last month of “grave mistakes” made by the Assad regime that had “unfortunately, paved the way for the situation in the country to be abused.” Former president Akbar Hashemi Rafsanjani directly accused Assad’s forces of using chemical weapons.

Dialogue between Washington and Tehran has two related tracks, the search for a settlement ending the war in Syria, and Iran’s nuclear program. Each needs face-to-face bilateral contact as well as respectively the Geneva-2 conference, scheduled for July and postponed by the US, and the P5+1, the permanent members of the Security Council plus Germany, which has been in nuclear talks with Iran for seven years without significant progress.

The hope for Syria is that both sides realize war is less in their interests than calming the regional Shia-Sunni tension it is enflaming. Wiser counsels in Washington know the road to 9-11 began in the US-Saudi intelligence co-operation and support for militants in Afghanistan in the 1980s.

In Iran, pragmatists argued within months of Mahmoud Ahmadinejad’s arrival in office in 2005 that his assertive Shi’ism would alarm the Sunni Arab establishment just as surely as his questioning of the Holocaust would alienate the US and Europe. Neither, they said, served Iran’s national interests.

Shortly after his election, Rouhani said diplomacy with Saudi Arabia was an urgent priority but the sheer speed of his reaching out to Washington is a surprise.

Improving US-Iranian relations faces a challenge in reviewing grievances. Americans still resent the 1979 embassy seizure and the 1983 bombing that killed 241 in the Beirut airport marine barracks, possibly the work of an Iranian national. A BBC poll earlier this year found 87 percent of Americans viewed Iranian influence negatively, the highest percentage in the world.

Iranian state television often shows images of the floating wreckage of Iran Air flight 655, shot down in 1988 over the Straits of Hormuz by USS Vincennes, with the loss of 290 lives. Rallies regularly evoke Ayatollah Ruhollah Khomeini’s denigration of the US as the ‘Great Satan’.

Rouhani is buoyed by his election victory but knows his fundamentalist critics in Tehran are waiting to pounce. His leeway to reach a compromise is real, but limited. In describing talks with the US Ayatollah Ali Khamenei, the rahbar (leader), expressed the balance between backing negotiations while remaining skeptical of Washington’s motives and intentions.

Arguably the outlines of agreements on both Syria and Iran’s nuclear program have long been evident. A former senior western diplomat told me earlier in the year that world and regional powers should agree that while the Shia would lead Iraq, with minority rights, the Sunni would lead Syria, also with minority rights.

Western desire for ‘objective guarantees’ over the peaceful nature of Iran’s nuclear program might be satisfied by a deal under which Iran would accept intrusive UN inspections and limit the program in scale and in the level of uranium enrichment. The quid pro quo would be easing sanctions that have, among other things, halved Iran’s oil exports and prevented development of its vast gas reserves. Iran has a vaguer requirement: that the US accepts its regional influence as natural and legitimate.

The obstacles are political. As Sayegh Kharrazi, Iran’s former ambassador, put it to me seven years ago: “On both sides, neoconservatives are strong. But neoconservatives cannot make decisions for everyone.”

As ever, the devil is in the details, but the details are discussed only if there is a broader will for agreement. That is the responsibility of leaders.
Gareth Smyth is the former chief Tehran correspondent of the Financial Times

October 8, 2013 0 comments
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Economics & Policy

Behind Lebanon’s newest film

by Maya Sioufi October 8, 2013
written by Maya Sioufi

"Ghadi”, the soon-to-be-released Lebanese movie, is not about the civil war, nor about sectarian tensions; it is about accepting someone who is different. A story with a fantasy twist, it’s a tale of tolerance and of hope; a timely message for the Lebanese in these challenging times. Local movies of its caliber are unfortunately rare, largely due to a lack of financial backers willing to bet on the country’s fragile movie industry. But Ghadi is a story that the producers were determined to bring to the screen with or without significant financial backing.

An unlikely protagonist

The film revolves around the eponymous Ghadi, a young boy with Down syndrome. The specifics of his disorder, also known as trisomy 21, are not as important to the plot as what they represent: difference. The movie is about “accepting people that are different” says Gabriel Chamoun, the film’s producer and CEO of Lebanon based production company The Talkies.

“He was born like this. If we don’t accept him, how can we accept the other differences in life?” asks lead actor and scriptwriter Georges Khabbaz.

Behind a window in a small town

Set in a timeless Christian village, the movie tells the story of music instructor Leba, played by Khabbaz, who marries his high school sweetheart and becomes the father of two girls and Ghadi. Sitting by a window, Ghadi screams day and night, which bothers the local villagers; unable to bear the noise any longer, they demand that Leba send his son out of the village to an institute for children with special needs. For Leba, this is out of the question. Armed with knowledge of sins committed by his fellow villagers, Leba decides to teach the locals a lesson of tolerance. From here the tale takes on a fairy tale twist, as he convinces the villagers that his son is an angel and only makes noise when one of them — a corrupt butcher, a bad-mouthed barber, a thieving policeman, a prostitute, some gossip hungry women among others — commits a sin. Rumors spread that the angel is also capable of fulfilling dreams. Suddenly, the window through which Ghadi looks down on them brings the village’s sinful behavior into check and becomes a window of hope for villagers praying for the fulfillment of their dreams.

Is Lebanon in need of Ghadi today? “Of course,” Khabbaz says. “Lebanon needs hope.”

Inspired by experience

The idea for the script came to Khabbaz out of his experience in the past five years as a theater professor for the children of Lebanese civil association Acsauvel, which provides care for mentally challenged children and adults. Eleven-year-old Emmanuel Kheirallah was handpicked by the film’s director Amin Dora, from Lebanon’s Sesobel association for disabled children, to play the role of Ghadi. Khabbaz wanted them all to play the role.

The villagers of the town believe Ghadi is an angel

 

After extensive casting, Dora kept going back to the pictures of Kheirallah. “I felt this boy needs to be the main character, he looks like an angel” says Dora. The cast also features prominent names such as Antoine Moultaka, founder in 1965 of the Lebanese University’s dramatic art department, scriptwriter Mona Tayeh and actor Camille Salameh, whose theater career began in 1972. Choosing the cast was not the hardest bit for Dora. “To treat the script in a fantasy way without losing its essence” was the most challenging aspect. It’s an endeavor in which he succeeded, bringing home the film’s powerful message while maintaining its fairy tale character.

A risky venture

This is the first time Khabbaz, a renowned theater director and actor in Lebanon, has acted in a film he wrote himself. His previous film experience is minimal, but includes the 2006 movie “Under the Bombs”, which was shown at the 2008 Sundance film festival. When The Talkies’ Chamoun reached out to Khabbaz at the end of 2011 with the offer of producing a feature film, he seized the opportunity. Within two months, he had the script — which had been running for years in his head — laid down on paper. Khabbaz and Chamoun quickly agreed on who would direct the movie: Dora, director and winner of the International Digital Emmy Award for the world’s first Arab web drama series “Shankaboot”. Dora is also behind the Beirut Duty Free’s flashmob commercials, which have over 4 million YouTube hits.

Ghadi's appearances become a major event in the town

 

Production company The Talkies are also new to the movie industry, having never produced a feature film before. Since 1998 they have specialized in television commercials, with clients including Samsung, McDonald’s and Qatar National Bank, while its movie experience has been limited to two short films. After failed attempts at producing feature films due to financing issues, Chamoun was determined to go through with the project, even if that meant — as it ultimately did — bearing the bulk of the not-so-little $1.5 million cost himself.

A costly gamble

With investors squeamish about taking a share of the movie partly because of their reluctance to invest in the Lebanese cinema industry and partly because of the fact that the company was a newbie in the production of movies, The Talkies ended up with a 70 percent stake, compared to an ideal target of 30 percent. The remaining share was taken up by friends of Chamoun: Anthony and Celia Sakkal, and construction company J. Matta Holding represented by Fadi Matta and Samer Dadanian.

“I knew it would be a struggle to fund this movie because it’s our first and there are not many successful [Lebanese] movies other than the ones of [actor and director] Nadine Labaki”, he says. One financial institution that has been venturing into the movie business of late is Lebanon’s FFA private bank, which recently co-financed the Hollywood action movie “Two Guns”, but when Chamoun approached them, they turned down the investment opportunity because of the “high budget for a Lebanese movie,” he says. The Talkies also struggled when it came to sponsors, only managing to get Societe Generale de Banque au Liban on board.

Beyond Lebanon, they secured a grant from Qatari cultural organization the Doha Film Institute, which will be assisting with the marketing of the movie for an international audience. Given that the message of the movie is universal and not specific to Lebanon, Chamoun is convinced the film could do well in countries abroad “especially South America because of its large Christian following”, he says. This is key since to break even Chamoun needs to sell tickets beyond Lebanon. Even if “Ghadi” ticket sales match Labaki’s “Where Do We Go Now?” 325,000 entries record in Lebanon — or just under $1 million in revenues — they will still fall short of covering the movie’s cost. Chamoun is hopeful that 50 percent of the return will come from Lebanon ticket sales, with the remaining from sales of international distribution as well as additional items such as DVDs and Video on Demand, all within 12 to 18 months from its launch date set for October 31.

It remains to be seen whether “Ghadi” will prove profitable for its backers. With a lack of public funding supporting homegrown movies, its financial success could be critical to entice investors and advertisers alike to back the country’s struggling cinema industry. It would be a shame to see the floundering of a Lebanese industry that has been around since 1929, beginning with the silent movie “The Adventures of Elias Mabrouk” followed by the first sound film, “In the Ruins of Baalbeck” in 1936. In the sixties Lebanon’s film industry even competed with Egyptian cinema, the Arab world’s center of filmmaking.

A traditional Lebanese setting with high quality acting and a touching script makes this movie one not to miss. It is all the more essential given its message of tolerance, whether for physical, mental or religious differences. Without crucial support, efforts of this sort — which should be seen not just in Lebanon but throughout the world — will not hit the screens nor be able to give our homegrown talent the audience they deserve. 

October 8, 2013 0 comments
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The Buzz

Business briefing: 8 Oct 2013

by Executive Staff October 8, 2013
written by Executive Staff

Economics and Policy

Cairo is hoping to start announcing details of its investment programme for this fiscal year later this month and Gulf Arab countries have agreed to provide additional financial support, a senior minister said.

More from Reuters

 

Lebanon's automotive sector is doing surprisingly well in the current economic environment, up 4.33 percent in the first eight months of the year on 2012, and in comparative terms, above the GDP forecast of 1.6 percent for 2013.

More from The Daily Star

 

GCC markets are expected to show robust economic growth over the medium term due to economic diversification of their local economies, according to an Ernst and Young (EY) forecast.

More from Gulf Business

 

Companies and Business

Nakheel World LLC, a subsidiary of Dubai World, today agreed to repay almost AED95m ($25.8m) to a private developer which bought a piece of land from it in Dubai in 2008.

More from Arabian Business

October 8, 2013 0 comments
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Business

Reimagining global journalism

by Livia Murray October 7, 2013
written by Livia Murray

Company: Transterra Media

Country: Lebanon

Industry: News

Founders: Jonathan Giesen, Eli Andrews

Ages: 41, 39

Established in: Sept 2012

Number of Employees: 17

Revenues: ½ million

Capital raised: 1.3 million

Awards: Red Herring Top 100 Asia 2013

 

“Two years ago it was like journalism was killed,” says Transterra Media CEO and co-founder Jonathan Giesen, referring to the flood of citizen journalism with the rise of social media that shadowed the Arab Spring. This appeared, Giesen says, as the final deadly blow to the media industry, which had been struggling since the 2008 recession slashed advertising prices, its main form of revenue.

But citizen journalism has not replaced old school reporting. Without a screening process to make sense of the world of online content, it has become at times chaotic. Transterra Media recognized this with the launch of their Beta website in Cairo, three days before the Egyptian revolution. The platform created a network where journalists could upload content that would be reviewed and purchased by broadcasters. “It was completely flooded with citizen journalism, activists, and it was really difficult to sort through the entire morass of content,” says Giesen. “We learned that the open-place market where you just load up photos, load up videos, load up stories, and or pitch stories doesn’t really work,” he says Giesen. Despite the supply of citizen journalism, he explains, the media industry is still driven by the broadcaster’s demand for quality coverage.

Giesen has won a number of awards

 

“The journalism world is still trying to find cheaper ways of getting better and better content from the ends of the earth,” says Giesen. “It’s too expensive to send your correspondent to Syria. It’s too dangerous. If you pick up the wires you’re going to get the exact same coverage that everybody is getting because they’re just sending out one major stream. So the idea is to get custom or tailored footage specific to your broadcasting.”

Transterra Media has since re-vamped and launched as a Lebanese company in September 2012. They have switched to an ‘on-demand’ model, where the broadcaster’s demand drive content specifications. “So for instance CNN or al Arabiyya or al-Jazeera – any one of the main international newspapers will say 'listen, we need footage from Syria. We need a 4 minute news package to broadcast on Saturday from Syria on X topic.” They currently have 236 news companies on their website, with premium buyers purchasing fifteen to twenty five stories per month. The company has so far made half a million in revenues, through a commission of thirty percent off each article.

Journalists must go through a screening or “vetting” process to be plugged into the network. This is a two-step process. “First, we have to get all your information in terms of your skypes, your emails, your twitters, we need to know if you’re a photo journalist, if you’re a video journalist, can you do piece-to-camera, can you get in front of a camera and actually put together a live broadcast… all of the different aspects a journalist could possible do,” says Giesen.

“And then we go through what is called second-level vetting, which is looking at it from a production standpoint so if you’re a video producer what are you shooting on, how can you shoot it, who have you sold to in the past, where did you get published, can you put together a 4-minute news package, can you put together a feature story… we need to know everything about what your capabilities are as a journalist.”

So far they have a network of 1700 journalists in 123 countries, and their goal is to keep building and diversifying their contacts. “We try to get as broad of a territorial reach,” says Giesen. In Syria for instance “we’ve got guys in Aleppo, we’ve got guys in Itlib, Ar-Raqqah, Deir ez-Zor, Damascus. We’re trying to get people in Daraa.”

To speed up communication between the broadcasters and the journalists, they are building an app to be incorporated into the network. This app will enable broadcasters to track the vetted journalists, and pull up their qualifications. “If a bomb goes off and you’re in the area, we know exactly what you can do, if you can provide historical context,” says Giesen. The app would also let broadcasters pair journalists with different skill sets together. “What we’re trying to do is build a network of people that can share resources, share stories, take assignments, change assignments as they are, pitch stories from the field, and then one of the big things is to go piece-and-camera or the liveshot,” he says.

Transterra media is growing with 75 new journalists joining the network every week, according to Giesen. But there are limits to the global news industry. “The conundrum in the industry is that there are only – let’s say there are only 800 really top-level buyers, news outlets that can use our material. There’s a limit. Even if you’re talking about professional journalists there’s only about between five and ten thousand,” says Giesen. “In order to expand our content base we’re gonna have to start finding new ways… either working with social media in a better way, or doing a lot of training to get people up to scratch.”

October 7, 2013 0 comments
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The Buzz

Business briefing: 7 Oct 2013

by Executive Staff October 7, 2013
written by Executive Staff

Economics and Policy

The International Monetary Fund (IMF) has increased its forecast economic growth for the GCC to 4.4 percent in 2014.

More from Arabian Business

 

Some 2,000 jobless Moroccans have marched through the capital demanding the government sort out the nation's unemployment.

More from Associated Press
 

Kuwait believes an oil price of $100-$110 a barrel is fair for producers and consumers, the Gulf OPEC state's oil minister has said.

More from Reuters

 

Syrian President Bashar al-Assad's regime deserves credit for complying with a chemical weapons deal, US Secretary of State John Kerry has said.

More from BBC

 

Companies and Business

Saudi Arabia's Almarai reported a 5.7 percent rise in third-quarter net profit on Sunday, missing analysts' estimates despite what the company described as "the strong performance of core dairy and juice categories".

More from Reuters

 

Riyad Bank, Saudi Arabia’s third-largest lender by market value, posted a 18.8 per cent rise in its third-quarter net profit on Monday due to higher operating income and lower expenses.

More from Reuters

October 7, 2013 0 comments
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The Buzz

Business briefing: 4 Oct 2013

by Executive Staff October 4, 2013
written by Executive Staff

Economics and Policy

A prolonged US federal government shutdown could delay military assistance to Israel and other American allies, the State Department has said.

More from Reuters

 

Saudi Arabia has cancelled its annual address at the UN General Assembly in an unprecedented move in protest against its handling of major issues in the Muslim world.

More from Arabian Business

 

Most Gulf bourses retreated Thursday in cautious investor sentiment ahead of an extended public holiday in mid-October, while strong retail activity lifted Egypt’s bourse.

More from Reuters

 

Companies and Business

Middle East Airlines chairman Mohammad Hout has announced that the profits of the national carrier in the first nine months were slightly less than last year but promised to boost productivity and increase working hours to maintain revenues.

More from The Daily Star

 

Petroleum, the world’s largest liquefied natural gas (LNG) exporter and main source of Qatar’s huge wealth, plans to expand internationally.

More from Reuters

October 4, 2013 0 comments
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The Buzz

Business briefing: 3 Oct 2013

by Executive Staff October 3, 2013
written by Executive Staff

Economics and Policy

The first phase of the onshore oil and gas survey started Tuesday in the Batroun region amid expectations that Lebanon might be sitting on considerable gas wealth in some areas.

More from Daily Star


Iran is preparing a politically risky increase in domestic fuel prices, trying to ease the burden of multibillion-dollar subsidies on an economy severely damaged by Western sanctions.

More from Reuters

 

OPEC's Secretary General says he is comfortable with the market outlook for 2014 and that a forecast drop in demand for OPEC oil is not large, indicating the group may not make big changes to output policy at a December meeting.

More from Reuters

 

Companies and Business

Middle East fund managers are planning to increase investments in Saudi Arabia while withdrawing funds from Dubai, owing to a concern about the latter’s market over heating, according to a Reuters survey.

More from Reuters

 

Qatar's response to allegations of maltreatment of migrant workers in the 2022 World Cup host nation has been "weak and disappointing," the International Trade Union Confederation (ITUC) has said.

More from Reuters

 

October 3, 2013 0 comments
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The Buzz

Business briefing: 2 Oct 2013

by Executive Staff October 2, 2013
written by Executive Staff

Economics and Policy

Israeli Prime Minister Benjamin Netanyahu on Tuesday dismissed a charm offensive by Iran's new president as a ruse concocted by a "wolf in sheep's clothing," and declared that Israel was ready to stand alone to deny Tehran an atomic weapon.

More from Reuters

 

Egypt’s economy will only grow 2.6 percent in the fiscal year ending June 2014, well below the 3.5 percent the government expects to achieve, according to a new poll.

More from Reuters

 

British Prime Minister David Cameron has weighed in on the row over worker abuses in Qatar, saying the state "must do better" after an investigation by a UK newspaper exposed an alarming number of foreign workers dying in the runup to the 2022 World Cup.

More from Arabian Business

 

Companies and Business

Islamic banks in the Gulf's rich Arab oil exporters are likely to keep growing faster than conventional banks, but their advantage in profitability is disappearing, according to a study released on Tuesday.

More from Reuters

 

Qatar has again ranked as the top financial centre in the Middle East, according to to the latest Global Financial Centre Index.

More from Arabian Business

 

The head of Investment Development Authority of Lebanon has said that he expects foreign direct investments to the country would fall by 21 percent in 2013, as the political stalemate and spillover of the Syrian crisis were scaring off potential investors.

More from The Daily Star

 

The head of the European Club Association (ECA), a body which represents Europe’s top football clubs, has been fined over a third of a million dollars by tax authorities for failing to declare two Rolex watches worth around £84,000 ($136,000) when he was searched by customs officials after returning from a trip to Doha funded by the FIFA World Cup 2022 hosts.

More from Arabian Business

October 2, 2013 0 comments
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Editorial

A crude state of affairs

by Yasser Akkaoui October 1, 2013
written by Yasser Akkaoui

September was a silent month. For days on end the Lebanese sat glued to their televisions waiting for the seemingly inevitable American strike against Syria. Daily life hardly seemed relevant in the face of the impending threat and fear of how such a move could turn the region upside down.

The worst part was knowing that the decision that would so deeply affect us was not ours to make. As those in Moscow, Washington, London and Beijing debated our future, we were powerless to do anything but sit silently and wait.

In the end a deal was reached to allow all sides to walk away claiming victory, but this sense of helplessness has permeated Lebanese society in so many ways. Take the country’s offshore oil and gas, which is likely to fundamentally transform the country. Whether it brings about the healthy, wealthy society we want to see or leads us further down the road to being a failed state depends so much on our politicians.

Many of the signs are worrying. Politics is creeping in — the delays of the last month are the result of political interests being put before those of the nation. All sides appear to be jostling for position, seeking to get their share.

This is potentially catastrophic. Our economy is already so deeply politicized that it fails to function. If this were to spill over to oil and gas the cumulative result would be the waste of the country’s underground wealth. This is not mere conjecture, but based on decades of evidence from across the world.

Yet we are not on the streets demanding our politicians put aside their interests and think of the country. We are not campaigning for true transparency and honesty in this most important of sector.

Worse still, part of us has already accepted that there is nothing we can do — the politicians will negotiate a deal in which everyone gets their cut, apart from the people. We feel totally powerless.

This is not good enough. We must work together to ensure that politicians stop trying to get their sliver of the pie, their own little kickback. We must make them so scared of us they can’t help but be honest. And most of all, we must demand that they recognize that these resources are ours, not theirs.

October 1, 2013 0 comments
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The Buzz

Business briefing: 1 Oct 2013

by Executive Staff October 1, 2013
written by Executive Staff

Economics and Policy

Lebanon is expected to host a donor conference in November as the government seeks to secure additional aid to weather the increasing economic burden resulting from the influx of Syrian refugees to the country.

More from The Daily Star

 

Syria’s pound has recovered about 40 percent against the dollar in the past month, gains that Central Bank Governor Adib Mayaleh said were due to the waning risk of a US strike and government intervention.

More from Bloomberg

Wealthy Gulf states are likely to see their oil and gas revenues drop next year but heavy government spending and increasingly energetic private sectors will keep economic growth robust.

More from Reuters

 
 
Companies and Business
 

Lebanon's finance ministry promised Monday to pay the state’s outstanding debts to contractors in four installments before the end of this year.

More from The Daily Star

 

More than $100m of deals have been generated at the 5 Franchise UAE Expo.

More from Arabian Business

 

The Qatar World Cup 2022 could be held in November, according to the new president of the International Olympic Committee.

More from Gulf Business

 

October 1, 2013 0 comments
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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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