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The Buzz

Morning briefing: 21 Feb 2013

by Executive Staff February 21, 2013
written by Executive Staff

Economics

Oil extended losses for a second session on Thursday, with Brent slipping toward US$115 a barrel after market rumours that a hedge fund was forced to liquidate substantial commodity positions led to the fuel's largest daily fall in 2013 the previous day.

More from Reuters

 

An open-ended strike paralyzed a number of key state institutions and public schools across Lebanon Wednesday as demonstrators threatened to freeze work at a new government department each day until they receive a wage hike.

More from The Daily Star

 

Tunisian leaders have begun the search for a new prime minister to try to lead the North African nation out of its gravest political crisis since an uprising that inspired a wave of Arab revolts two years ago.

More from The National

 

Iran’s economy is not close to collapse, despite increased Western-led sanctions

More from Reuters

 

Lebanon’s Central Bank has sold $2.2 billion of sovereign Eurobonds and swapped LL6 trillion of 2013 and 2014 certificates of deposit with longer maturity ones over the past two weeks, Central Bank Governor Riad Salameh has disclosed.

More from The Daily Star

 

Egypt’s economy grew 2.4 per cent in the last half of 2012, the government said on Wednesday, citing consumer spending as a main driver for an economy battered by two years of political turmoil.

More from Reuters

 

Companies and Investments

Almost half of unemployed Saudi Arabians have never applied for a job, according to a study by the Gulf kingdom's Ministry of Labour.

More from Arabian Business

 

Nearly three quarters of businesses expect to increase their spending this year on mega infrastructure projects in the Middle East, according to a survey by professional services firm PricewaterhouseCoopers (PwC).

More from Reuters

 

Bahrain-based Islamic lender Al Baraka Banking Group recorded a 24 per cent increase in fourth-quarter net income, the bank said on Wednesday, with business expansion and improved asset quality aiding profit growth.

More from Reuters

 

GCC equities are forecast to generate moderate returns in the range of 10 to 15 per cent in 2013 on the back of a steady improvement in overall fundamentals, multiple re-rating and earnings growth, a regional investment bank said.

More from Khaleej Times

February 21, 2013 0 comments
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Society

Book Review: The Lebanese Connection

by Sami Halabi February 20, 2013
written by Sami Halabi

By the third page of Jonathan Marshall’s new book, “The Lebanese Connection: Corruption, Civil War and the International Drug Traffic”, anyone who knows Lebanon can see why the book may be controversial. In one stroke of the pen, Marshall accuses modern Lebanon’s founding fathers Bechara el-Khoury and Riad el-Solh of profiting from the drug trade as they were putting together the pieces that is Lebanon today. By 1990, the glue that held those pieces together, and almost tore them apart, was hashish and heroin. 

The Lebanese Connection is Marshall’s third book about drug trafficking, covering the history of the Lebanese drug industry, its supporters (both internal and external) and the extent to which it constituted a major linchpin in the global narcotics trade from independence until the end of the civil war. In doing so, Marshall runs the gauntlet of implicating major Lebanese families, politicians, political parties, banks, airlines, external actors and intelligence agencies, by name, for dealing in, or at least being affiliated with, the drug trade during that time. 

Any Lebanese citizen reading the book will likely feel a sense of unease and suspicion of any author who points a finger squarely at many of the figures and families that form the crux of today’s body politic, even if it is across sectarian and communal affiliations. Merely listing names of all the actors identified by Marshall would not do his research justice, not to mention the fact that a Beirut-based publication would not last very long after printing them.  

Marshall’s research is extensive; a fifth of the book’s girth is dedicated to notes and appendices. But, by the author’s own admission, the work is nevertheless skewed. It relies heavily on documents he obtained over many years from United States drug enforcement agencies and personal interviews with their agents. He also draws heavily on English-language publications without attributing much bias to publications based out of the US that are known to have a pro-Western slant.

Marshall offers this book as a mere addition to the discourse about what allowed the Lebanese conflict to rage for so long. And even if half of what Marshall says is true, he has proven that the length and devastation of the protracted conflict would not have been possible without the political, financial and international support for Lebanon’s drug industry. 

Yet the principal strength of this work is not that it is well researched or identifies people by their names, but that it is written in a manner which allows readers to appreciate the history, relevance and consequences of how drugs fueled the civil war. Instead of the accusatory tone that most are used to in their national publications, Marshall calmly and matter-of-factly shows how, not just today, but historically the Lebanese authorities have shirked their responsibilities. 

Hashish and poppy farmers never got nipped in the bud because the authorities either colluded with them, did not have the political ability to do so or could not offer them economic alternatives. Marshall details how financial institutions turned a blind eye to the billions of dollars in drug money entering their vaults in the 1960s and 1970s and the apparatus that supported the smuggling efforts from transit routes to “illegal” ports during the 1975-1990 war, as trade value shifted from hashish to the more valuable opium-based products that were either sourced and processed in Lebanon or shipped through.  

When accusations are exaggerated he points out that they are likely not true. This is the case when he deals with Israeli accusations against the Palestine Liberation Organization, Hezbollah or the Syrians, not that he exonerates them either. The bulk of the trafficking, however, is attributed to the Christian militias that controlled the ports along the coast, but he does not fail to mention the political protection the Muslim farmers of the valley received in the first place and the minorities that facilitated the international network of smugglers and mafiosos needed to market the drugs to the West. 

By the end, Lebanese will have an awkward feeling that they are still ruled by figures that ravaged the country for years and paid for it by smuggling drugs. The fact that ordinary Lebanese have been imprisoned for years without trial for acts that pale in comparison to those committed by today’s political class is but further evidence of how the trade has damaged the country. 

 

Note: The original version of this article claimed that the book had been banned by Lebanon's security general. This was incorrect, though it is not on general release in the country.

February 20, 2013 0 comments
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The Buzz

Morning briefing: 20 Feb 2013

by Executive Staff February 20, 2013
written by Executive Staff

Economics

A fall in electricity demand in Iran's sanctions-hit economy led to a 29-percent rise in its power exports over the last 11 months, the state news agency IRNA has said.

More from Reuters

 

Lebanese Prime Minister Najib Mikati’s proposal to allow real estate developers to add an additional floor in return for higher taxes could cause the prices of properties to soar beyond the means of average citizens, economists have warned.

More from The Daily Star

 

Qatar will create a new $12 billion investment firm, backed by blue-chip assets from its sovereign wealth fund, and list it on the local stock exchange, its main institutional backer has said.

More from Gulf Business

 

Companies

The head of Lebanon’s banking association has warned  of the challenges facing Lebanese banks due to new U.S. banking regulations on foreign lenders, criticizing the cost of the measure and its potential violation of privacy laws.

More from The Daily Star

 

Emirates Banks Association is to change its name to UAE Banks Federation, it said in a statement.

More from Gulf Business

 

Etisalat, the United Arab Emirates’ biggest telecom operator, has written down the value of businesses in Pakistan and Sudan by a combined $769 million, blaming tough political and economic conditions and crimping quarterly profit growth.

More from Reuters

 

Ahli United Bank, Bahrain’s largest lender by market value, posted an 11.8 per cent gain in its fourth-quarter net profit, boosted by an increase in net interest income.

More from Reuters

 

February 20, 2013 0 comments
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Economics & Policy

The economy of a refugee camp

by Fernande van Tets February 20, 2013
written by Fernande van Tets

“I am buying make-up to look beautiful for my husband,” proclaims Manal Ahmad Ibrahim, while checking out mascara priced at $1.50. Run by Naqil Bardash, a former hotel manager from Daraa, the shop in the Zaatari camp for Syrian refugees in north Jordan sells second hand clothes, tiger print briefs and even rents out wedding dresses.

A bit further into the camp, the “Freedom Café” offers cheap coffee, tea and conversation. Owner Omar Siran bought his set up — primarily a stove and a gas burner — for $70. Having established it three months ago, he says he now serves hundreds of customers daily. A cup of coffee will set you back $0.50, of which he says he pockets $0.07 as profit to spend on supplies and vegetables for his house.

Bardash and Siran’s stores are but two of the more than 100 that line the dusty street of Zaatari, where a lack of regulation has helped a pseudo free-market develop. Setting up shop is cheap; there are no laws and building materials can be scrounged from around the camp — the benches at Siran’s store were made from UNHCR blankets wrapped around planks of wood. 

Refugees buy goods using their savings or some have work; residents in Zaatari can earn up to $8.50 a day through a cash-for-work program run by various agencies operating in the camp, while teachers earn $310 a month.

A central plan

But entrepreneurs like Bardash and Siran are set to face a shake-up as the World Food Programme (WFP) is changing the way aid is distributed in the camp. Currently, the vast majority of the basic needs of the 120,000 refugees are met by UN agencies and NGOs directly: the WFP distributes bread, lentils, rice, sugar and oil, UNHCR provides tea, tomato paste and hummus, while the Danish Refugee Council provides hygiene kits. Most basics are available for free, but acquiring them involves a lot of standing in line.

But as the numbers of Syrians arriving at the camp has increased rapidly – with over 2,500 per day this week – aid agencies are being forced to rethink their procedures. Under the new system, which will be introduced gradually in the coming months, agencies will no longer hand out resources. Instead, refugees will be given vouchers to spend on what they want in designated larger stores. The first two of these have opened, with another 16 planned and the possibility of more as the population increases.

Due to the peculiarities of the camp’s management structure, many successful shops in the area are excluded from applying to be involved in the scheme. This is because the WFP provides the cash-for-food assistance programs but the running of the camp — and thus the market inside it — is in the hands of the Jordanian government. As such larger stores will be established from which the refugees can buy their goods, potentially undermining those already succeeding.

“The market facilities in the camp will be set up by around 20 local community-based organizations (CBOs); each CBO is linked with local wholesalers in the Mafraq and Zaatari areas,” says WFP Public Information Officer Dina El Kassaby. “This arrangement serves as a link between Zaatari and the surrounding local community.”

The WFP describes the new system of food vouchers as ‘win-win’, as it allows refugees to choose what they buy at the same time as supporting the local economy. The body says part of the appeal is it will lead to a 20 to 25 percent decrease in administrative costs, largely due to the reduced number of costly expatriate staff.

“At present, it takes about $2.4 million per month to run the dry food distribution in the camp which provides food at the value of about $25 per person (per month), while the voucher program will cost slightly more but provides $40 per person,” says Kassaby.

That refugees crave more than the basics can be seen from the wide range of luxury items available elsewhere in Zaatari. Although many stalls sell fresh vegetables and cigarettes — the most commonly cited expenditures by residents — it is also possible to buy television sets, satellite dishes and perfume.

Rahul Oka, an anthropology professor at Notre Dame University who has done extensive research on informal economies in refugee camps, believes that the new system is positive as it increases choice. “When we think of refugees, we think of poor people. Very often we forget the fact that one month ago, or in their recorded memory, they were not poor people; they were engineers, doctors, shopkeepers,” he says. “They are forced to behave as though they are beggars that can’t be choosers.”

Adapting fast

News of the proposed changed does not appear to have hit the stall-owners yet, with most unaware of the coming change when asked by Executive. But Oka expects the traders to adapt quickly, and indeed beat the system. “What do people working in an NGO know about business?” he says. Refugees will be much more tuned in to their fellow Syrians needs, he adds, predicting that the vouchers, because they are backed by the WFP, may work as currency, linking into the current bartering system rather than destroying it.

And while it is the first time WFP has introduced competition into a Syrian camp, the organization isn’t worried. “In general, the more economic activity going on inside the camp, the better,” says WFP’s El Kasseb.

The introduction of the new system is a sign that refugees are settling in for the long haul. Other signs of normality are emerging: weddings are frequent; with the bride and groom often meeting in the camp. Bardash recently bought a second white gown after demand to rent the first one proved so high.

Elsewhere in Zaatari, 20-year old Ammar Kinani has just opened his barbershop on a piece of prime real estate, right next to the camp’s entrance. Kinani is the sixth barber in the camp, serving 20 customers a day. “I had never expected to own my own business this young,” he says. “I was driven to it by the circumstances.”

February 20, 2013 0 comments
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The Buzz

Morning briefing: 19 Feb 2013

by Executive Staff February 19, 2013
written by Executive Staff

Economics

Brent crude held steady above $117 per barrel on Tuesday after settling down for the third straight session the previous day, with traders looking ahead to Italy's upcoming elections.

More from Reuters

 

Gold rose for a second straight session on Tuesday, buoyed by strong physical buying in Asia after traders in China returned from a week-long break.

More from Reuters

 

Lebanese public workers and school teachers will proceed with their open-ended strike Tuesday after the Cabinet failed to convene Monday to approve the long-awaited wage hike and send it to Parliament for endorsement.

More from The Daily Star

 

Central Bank Governor Riad Salameh downplayed Lebanon’s anemic 2 percent growth in 2012, saying that considering the regional situation, “one could not expect to have better than this.”

More from Bloomberg

 

The United Arab Emirates will grant Bahrain $2.5bn for development projects in the Gulf Arab state, part of a regional funding program implemented after a pro-democracy uprising in 2011, Bahrain's state news agency reported.

More from Reuters

 

The United Arab Emirates (UAE) has signed defence contracts worth Dhs5.2 billion ($1.4 billion), including one for unmanned aerial drones, a spokesman for the country’s military said on Monday.

More from Reuters

 

Egypt's annual economic growth rate will hit 3 percent by end-June, below the government's projected 4 percent because of political instability, the Planning and International Cooperation Minister said on Monday.

More from The Daily Star

 

Companies

Shareholders of Dana Gas, the Abu Dhabi-listed energy firm, will vote on March 14 to approve a restructuring plan for its $920 million sukuk after failing to meet maturity of the Islamic bond last year.

More from Reuters

 

Dubai Financial Market Company, the only listed bourse in the region, has returned to profit amid renewed buying interest in Dubai stocks.

More from The National

 

Hopes of progress in the potential merger between Sorouh Real Estate and Aldar Properties has propelled stocks in both companies upwards.

More from Bloomberg

 

February 19, 2013 0 comments
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Society

How to rebrand your company

by Joe Ayoub February 19, 2013
written by Joe Ayoub

We live in a region where it is safe to say that the majority of well-established companies and family businesses tend to be resistant to change. Yet, as businesses wake up to the need to realign strategy with evolving markets and market trends, and as branding becomes recognized for its power to increase revenue, change is increasingly on the agenda.

Change from within

There is a simple truth universally acknowledged among branding experts that any change made to a brand will almost always end up bringing about internal organizational changes as well. This is particularly true when a change in brand strategy or a repositioning of a brand takes place. If we take some examples from the global marketplace, we can refer to Nike, which two years ago announced plans to implement a full range of management and organizational adjustments. These plans went hand in hand with the brand’s strategy to move its global strategy away from a product-driven company toward being a consumer-focused group. Or, in the United Kingdom, when Barclays Bank decided to reshape its services around the customer — the end result entailed changes not only to the products offered but also to the delivery of service, training of staff  and so on.

The point is that today a brand is no longer purely a symbol that acts as a reassurance or sign of good quality for the customer; today a brand is a holistic entity that ties its external customer offerings with how it organizes itself internally. Therefore any change made on the ‘outside’ (in how the brand interacts with customers) will almost always necessitate change on the inside.

Resistance is futile

Even if this restructuring is not apparent at the time change is initiated, it will soon become so. As a company conducts business in line with the new strategy, little by little it will realize which aspects of the organization no longer work and which need some adjustment. This is not something that can be resisted. Even if a company chooses not to restructure internally to reflect its new positioning, the reverberations will make themselves felt, building momentum until the business is struck by a metaphorical tsunami.

I would like to note here that almost all of Brandcell’s clients with whom we have worked on their brand strategy are today facing the need to rethink their organization.

That is not to say that repositioning or changing strategy poses a risk; quite the contrary. When a brand effects change of its own accord, it is a positive thing to be embraced. For it to succeed, however, this new direction needs to engage all elements of the company. Employees need to be involved in and engaged with the change, so that it can be reflected in their future behavior. It is essential for businesses to be aware of this need, to take things gradually and account for them at a certain point. They need to consider their internal managerial changes in terms of restructuring and re-engineering, knowing that just as in chess, when you move one piece on the board it has an impact on the greater picture.

Ultimately, a change in brand strategy signals a desire to adapt to the customers’ needs. With this in mind, the goal can’t be reached simply through superficial means, such as redesigning a logo or creating a new tag line. In the end it is about realizing that brands are becoming agents of change for the        companies themselves.

Joe Ayoub is chief executive of Brandcell

February 19, 2013 0 comments
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Comment

Tunisia’s tourism in need of an Arab Spring break

by Eileen Byrne February 18, 2013
written by Eileen Byrne

In the aftermath of the Tunisian revolution two years ago there was hope that the end of the Ben Ali regime might provide an opportunity for a makeover of the country’s tourism industry. It was time, some said, for Tunisia to move away from its reliance on the ‘cheap-and-cheerful’ package holiday — a  model that dated back to the 1970s, when visitors were cantoned away at beach resorts and had little interaction with locals. The medium-term goal, it was argued, should be to attract more higher-spending visitors to a wider range of holidays and activities, from trips to view desert wildlife to business conferences.

As in other areas of the economy a combination of domestic and international factors is slowing progress. World Bank economists advising the country’s transitional government discovered that banks had lent heavily to financial investors in beach-side hotels who often had little vocation or incentive to grow their businesses along competitive lines. The easy credits often reflected borrowers’ links to Ben Ali’s ruling party, the Constitutional Democratic Rally (RCD), rather than any entrepreneurial skill. Banks knew the courts would not enforce repayment, and today about 33 percent of Tunisian banks’ non-performing loans are related to these beach-side hotels. The phenomenon has received scant coverage in local media, and hotel owners are dragging their feet on a proposal that would see their debts rescheduled and taken off the banks’ books by being transferred to an asset management vehicle.  The result: along the coast from Tabarka in the north to Djerba in the south, by way of Hammamet, Sousse, Monastir and Mahdia, price-cutting by those who benefited from the easy loans intensified amid the drastic falls in visitor numbers following the revolution. Tunisia’s approximately 850 hotels include about 50 that are not commercially viable, and other hotel owners, struggling to pay back normal loans, cannot compete on pricing. Their workers barely get by on low wages.

The Islamist party Nahda had big aspirations for tourism ahead of the October 2011 election. One speaker at its campaign launch was frank, if hardly diplomatic, when he declared: “We are tired of welcoming the poor of Europe!” Experts rattled off ways to woo new kinds of visitors: cultural, desert, sports, Islamic, ecological and medical tourism. Niche tourism for the wealthy, even revolutionary tourism where groups of camera-wearing tourists were already being shepherded past the once-feared Interior Ministry building in Tunis was proposed. Later, savoring its landslide election victory and heading a three-party coalition government, Nahda attempted to reassure a jumpy French media that it would ban neither beer nor bikinis on the beach.

Fast-forward to early 2013 and despite the continuing economic crisis in Europe, visitor numbers, at more than 5.5 million, are recovering. But they are still 14 percent below the levels of 2010, the last year of the Ben Ali regime. Elyes Fakhfakh, a member of the non-religious Ettakatol party and a former manager with French oil company Total, was tourism minister through last year before being appointed finance minister in December as well. His scenario is for steady growth to take visitor numbers to 10 million by 2016, as Tunisia, for the time being, falls back on its existing hotel infrastructure at the classic coastal resorts.

French tourists — still by far the most important national contingent — are nevertheless 28 percent down, compared to falls of 10 percent for German and 6 percent for British visitors. Is the French media’s extensive coverage of Tunisia’s conservative Salafist Islamists a factor in the slow return of the French? Tunisians on Facebook certainly think so. After ‘France 2’ television broadcast on January 17 a documentary entitled “Tunisia under the Salafist Menace”, more than 1,300 Tunisian Facebook users leapt to the defense of their tourism industry, accusing the film-makers of scare-mongering and of sabotaging the 2013 season.

With French planes flying over neighboring Algeria to reach Mali, and Algerian troops’ botched attempt to rescue hostages from Islamist militants at Algeria’s In Amens gas plant, the French-made documentary had touched a nationalist nerve.

Unfortunately events in Mali and Algeria may put a damper on tourism in Tunisia, especially on the “desert tourism” that looked to generate much-needed income in the south. And as for Tunisia’s woefully under-exploited Roman archaeological sites, it seems the dead hand of the old regime needs to be further loosened so that a little fresh air and commercial know-how is let in to generate jobs.
 

Eileen Byrne reports from Tunis for the London-based Guardian and The Sunday Times

February 18, 2013 0 comments
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Society

To Infiniti and beyond

by Nadim Mehanna February 18, 2013
written by Nadim Mehanna

The scene at the Millbrook Proving Ground was beginning to feel like something out of a James Bond film. Our cellphones had been confiscated at the edge of the track. The only camera among us now hung from the neck of a single, vetted photographer. Those in attendance were all highly selected, the elite of the automotive world. Of course, when you’re offered a glimpse of the future, certain precautions must be observed. 

The car we had come to see was the Infiniti Emerg-E, Nissan’s bold foray into the world of electrical supercars. Hand assembled, this prototype would never be bought or sold, never enter production. It would afford us our glimpse of the world to come, then disappear, whisked off to a museum showcase to live on forever as the first of its kind. And what a first it was.

Giving ‘green’ a supercar sheen

The Emerg-E is no hybrid. It is 100 percent electric, with a range-extender power train that kicks in only when needed. At the vanguard of an emerging class, it paves the way for a new generation of supercars. The moment has been ripe for some time. Despite the growing popularity of gas-electric hybrids — sales of Honda’s Insight, the Nissan Leaf and the Chevy Volt all remained strong throughout the fall — supercar makers have remained at the outskirts of the revolution, delving into carbon fiber to cut weight but always relying on the basic principals of thermal combustion to give their cars a surge of power. And while a few other makers, like Ferrari and Audi, have dabbled in concepts, none have ever entered the demonstration phase.  In part, it’s a problem of mechanics; for acceleration and sustained speed, there is no substance yet known to man that can compete with liquid fossil fuels. Hydrogen fuel cells remain uneconomical; battery storage capacity has bottlenecked. Yet these limitations have not stopped the commercial segment of electric vehicles from doing a clipping trade, thanks in part to the stubbornly high gas prices of the past decade. 

The more intractable problem, rather, is that supercar makers face a roadblock in terms of branding and image.  The problem, in large part, is that green vehicles are seen as “sensible” — they’re smart rather than sexy, designed to save money on fuel and lighten your carbon footprint. They’re small, urban, economical. In the high school academy of cars, the eco-car is the skinny kid with the coke bottle glasses and the pocket protector. Sure, he can help you with your physics homework, but he’s never going to get a date.

   

And let’s face it: the people who can shell out $2.5 million for a Bugatti Vitesse are not worried about the cost of gasoline at the pump. They’re looking for speed, for power, for prestige. They’re looking for sex appeal, not sensibility. If a car can embody those qualities and still lighten its load on the planet, great, but first and foremost it has got to meet the basic criteria of the supercar style. 

No compromise — it is still a supercar

Which is exactly why the Emerg-E is such an exciting prospect. Here, at last, is a vehicle that achieves ecological responsibility without compromising the car’s basic charisma. With acceleration of zero to 100 kilometers per hour (km/h)in under four seconds, this eco-car would keep pace in a drag race with any in its segment. 

Power is delivered through its 402 boiler horsepower twin electric motors, one for each of the rear wheels. A third, range-extending engine is also on hand. 

Visually, the Emerg-E would feel at home in a episode of Star Trek. Tapered and sleek, with seamless contours along its 4.5 meter frame, the car is both elegant and edgy in design. It ripples silver, its shell glittering with LED lights. 

Inside, the dashboard flickers with dials and OBD diagnostics. Everything is mapped, everything controlled. 

At the wheel, the supercar experience is emulated, but not duplicated, and you never entirely forget that you are driving the technology of the coming age. Turn it on, and you notice the noise immediately — not the throaty growl of a thermal engine, but something higher-pitched, a drone, a whine. It’s much quieter than a gas-fired engine, but something about it still makes your hair stand on end. It’s the sound of electrons flowing, of a charge rushing along copper wire.

Depress the accelerator, and the car flies. The acceleration is amazing; in  a regular car, you would need a V8 engine to achieve this kind of pull. In the time it takes to draw two breaths, the car has reached 100 kmh. 

After that, the magic flickers. The car has no gear box, meaning it tops out at 141 kmh. The engine is spinning like a table saw, singing like a Valkyrie hitting a high note. There are a few odd sounds from beneath the hood — nothing disturbing, but this is, of course, a prototype, and there are still a few kinks to iron out. In terms of performance the experience is flawless, as the car takes curves easily, its grip and steering never faltering. 

The way of the future? 

And all of this with zero emissions. The Emerg-E emits no more than 55 grams of carbon dioxide per kilometer over a 300 mile range, and can cruise for 30 miles without ever engaging its thermal drive train. 

That this should be the direction of all automobiles, supercar and sedan alike, seems now increasingly inevitable. Whether a decade or a century from now, there will come a day when the pumps creak to a halt, when the oil fields run dry and the last thermal engine chugs to a rusting halt. Perhaps ecological consciousness and the specter of climate change will bring that day sooner rather than later. But when that day comes, the automotive sector will already be well along the road to adaptation. 

Rest assured, Nissan’s visionary concept will not be a momentary aberration. Experiments with liquid hydrogen and even roof-mounted solar panels have failed to produce viable vehicles in any meaningful sense. Only electric cars and gas-electric hybrids have made the gains needed to compete with  traditional thermal combustion. 

In time, and probably not a long time either, we will see the other supercar makers launching demonstrable prototypes of their own, driving standards even higher. But for the moment, at least, Infiniti can bask in its momentary limelight, the sole occupant of a class unto itself. 

February 18, 2013 0 comments
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Economics & Policy

Is Bahrain’s economy stabilizing?

by Benjamin Redd February 18, 2013
written by Benjamin Redd

Two years ago last week, thousands of protesters took to the streets in the tiny island kingdom of Bahrain in the wave of pro-democracy uprisings sweeping the region.

The government cracked down brutally — including using illegal tactics according to the independent commission set up to investigate the events. The result was more protests met by more repression.

The economic effects of the political crisis have been devastating but there are signs that things are finally improving.

Click here or on the chart below to see our interactive guide to the Bahraini economy and uprising.

 

February 18, 2013 0 comments
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The Buzz

Morning briefing: 18 Feb 2013

by Executive Staff February 18, 2013
written by Executive Staff

Economics

Gold rebounded from a six-month low on Monday as bargain hunters resurfaced and jewellers in China returned to the physical market after the Lunar New Year holiday, but a firm US dollar was likely to limit the upside.

More from Reuters

 

A union of public workers in Lebanon will go ahead with an open-ended strike commencing on Tuesday after the government amended a previously agreed draft salary scale in an attempt to assuage private sector concerns over its impact.

More from The Daily Star

 

Companies

The first of two Turkish power boats which are supposed to ease Lebanon’s energy woes arrived in the country’s waters on Sunday.

More from The Daily Star

 

Jordan's Arab Potash Company, one of the world's largest producers of potash, said 2012 net profit fell by more than a third as costs rose, while falling global demand weighed on output.

More from Arab News

 

Dubai-based contractor Drake & Scull has said that the civil engineering arm of its international construction business signed a US$122.5m deal in the Western Province of Saudi Arabia.

More from Construction Week

 

The owner of Lebanon island on Nakheel’s The World development in Dubai has sold it for AED35m (US$9.5m).

More from Arabian Business

 

Abu Dhabi National Energy Company has discovered oil in a new North Sea field off Scotland.

More from Reuters

 

Wataniya, Kuwait's number two telecom operator, reported a 26.5 percent fall in fourth-quarter net profit as more customers failed to offset tougher competition at home and foreign exchange losses in Tunisia and Algeria.

More from Reuters

 

Dubai’s Al Mal Capital is looking to hire up to 20 percent more staff in 2013.

More from Arabian Business

February 18, 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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