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The Buzz

Morning briefing: 28 Jan 2013

by Executive Staff January 28, 2013
written by Executive Staff

Economics

Lebanon’s trade deficit widened 6 percent in 2012 to a five-year high of $16.8 billion as Lebanese fuel imports, which are partially being re-exported to Syria, soared.

More from The Daily Star

 

Egypt's president declared a state of emergency and curfew in three Suez Canal provinces hit hardest by a weekend wave of unrest that left more than 50 dead, using tactics of the ousted regime to get a grip on discontent over his Islamist policies and the slow pace of change.

More from The National

 

Iraqi energy officials have signed an oil exploration agreement with a Kuwait-led group, finalising a deal that was altered to expel a Turkish firm amid worsening ties with Ankara.

More from Sky News

 

Companies

Dubai’s government-run oil company says it has started importing supplies from Qatar and is seeking other sources in apparent moves to replace Iranian crude lost because of international sanctions.

More from AFP

 

Nawras, Oman’s number two telecoms operator, posted a 13.4 per cent drop in fourth-quarter profit, a fourth consecutive quarterly decline, as falling revenue from texts and on-network calls weighed on the bottom line.

More from Gulf Business

 

Lebanon’s Byblos Bank posted a 5.9 percent year-on-year drop in profits in 2012 after allocating $66.7 million in provisions for credit losses.

More from The Daily Star

 

Twitter has started commercial operations in the UAE with the Egyptian advertising agency Connect Ads after tripling the number of users in the region over the past year.

More from The National

 

Commercial Bank of Qatar (CBQ), which is eyeing a majority stake in Turkey’s Alternatifbank, posted a 19 per cent jump in fourth-quarter net profit on Sunday on increased lending, but still trailed analysts’ forecasts.

More from Gulf Business

 

UAE investors in stalled schemes being developed by Hydra Properties were again left frustrated yesterday when the auction of a prime package of land owned by the developer was suspended at the last minute.

More from The National

 

January 28, 2013 0 comments
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Comment

Jordan’s apolitical new parliament

by Riad Al-Khouri January 28, 2013
written by Riad Al-Khouri

As violence continued in Syria, Iraq, Egypt, and elsewhere in the region last week, Jordan managed to hold boringly quiet elections for the kingdom’s 17th Lower House of Parliament. These came out as expected, with most of the winning candidates being non-ideological and representing clans. While the king was allegedly seeking a new approach to involve parliament in the naming of the next prime minister and in the formation of the cabinet, the new legislature looks worryingly like its predecessors – largely made up of individuals with few ties to political groups.

The result is a more or less apolitical legislature that will not get in the way of the serious business of ruling the country and preserving its role as a strategic Western ally and asset. A senior regional election-observer summed things up when he told me privately after the results were announced that the regime “got what it wanted.”

The reaction in the country was mute. The few minor post-election riots that did take place were contained via tribal mediation, and the capital Amman was miraculously cleared of campaign posters within three days of the vote – with allegedly 4,100 tons of rubbish thrown away.

Cynics of course might say that it was all garbage from the beginning. For a start, there was blatant gerrymandering of the mostly multi-member constituencies. In these, voters got to elect one person only, resulting in the success of candidates with the larger clan following. The inevitable result was thus a heavy bias in favor of tribal non-ideologues who could be counted on to continue playing the political game as the regime expects.

To help overcome this systemic bias of all previous parliaments since 1993, the outgoing parliament – with the King’s backing – introduced a new National List for the first time. Under this system, 27 individuals were elected based upon national political lines, rather than local constituencies. Despite this, many of these lists were simply the clients of the tribal leaders who head the groupings. These seats ended up being filled by candidates from a score of lists, thus contributing to the fragmentation that will leave the new House of Representatives as putty in the executive branch’s hands (the Senate, the other branch of Jordan’s parliament, is appointed directly by the king, so there are no problems there).

However, the whole exercise was not necessarily bad. The poll was more or less free and transparent, with most people exercising their right to vote without coercion. This was attested to by most of the more than 7,400 local and international election observers who monitored the poll, in addition to several hundred guests from outside the country who included foreign diplomats and other officials.

And even the more cynical among Jordanians couldn’t fail to note the election of a record 18 women – up from 13  – about an eighth of the 150-seat Lower House’s members. Fifteen of these won through the women’s quota already built into the election law in previous polls, two won by direct competition in the 108 constituency seats, and one other won via National Lists, eight of the winners having had previous parliamentary experience. In Jordan’s current situation, this small step forward by and for women is good.

Despite an electoral system that amplifies family, tribal and national divisions, limits the development of a true legislative body, and challenges the stated aim of encouraging full parliamentary government, the overall exercise was positive compared with the 2007 and 2010 elections.  

So, as foreseen in the government’s plans, Jordan’s “reformist” tale is boring the local audience with promises of stability, rather than titillating them with hints of major change. Yet, the current Jordanian crisis – like that of the other countries of the region – is an existential one, so this tinkering with the current system may eventually not work. As the current regional situation deteriorates, Jordan could come under more serious strain; in that case a business-as-usual attitude as exemplified in these elections won’t be enough to save the country’s political system.

 

Riad al Khouri is a Jordanian economist and a principal of DEA Inc, in Washington DC

January 28, 2013 0 comments
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Finance

Understanding Lebanon’s stimulus package

by Joe Dyke January 28, 2013
written by Joe Dyke

Lebanon's economy and particularly its real estate sector are in need of a boost, and so the Banque du Liban (BDL) – the country's central bank – have proposed a stimulus package.

On January 14, 2013, BDL issued Intermediate Circular 313, with the aim of pumping an extra LL2,200 billion ($1.46 billion) into the economy, yet the plan has received little meaningful analysis. 

Click here or on the picture below to see Executive's interactive guide to the package.

January 28, 2013 0 comments
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Society

Out in the cold

by Sam Tarling January 26, 2013
written by Sam Tarling
This makeshift tented community in Lebanon's Bekaa Valley has become home to some 150 families who have fled the conflict in neighboring Syria. The families here live with little protection from the elements in homes made of plastic sheeting and scavenged materials [Photo: Sam Tarling/Save The Children/Executive]
Despite the cold already setting in, many of the children at this camp still lack proper winter clothes and footwear to adequately protect them. More than 300,000 registered refugees have fled the conflict in Syria to neighboring countries [Photo: Sam Tarling/Save The Children/Executive]
A child runs through the mud at the camp [Photo: Sam Tarling/Save The Children/Executive]
Abdulla, 5, has only sandals to protect his feet. "I want a blanket and I want a carpet," he said, fingers and toes chapped from exposure to the cold [Photo: Sam Tarling/Save The Children/Executive]
Roughly constructed, tented homes provide little protection from the cold or the rain [Photo: Sam Tarling/Save The Children/Executive]
The settlement is far more crowded than it was earlier in the year and, with no end to the Syrian civil war in sight, will likely become more so in the coming months, further compounding problems the residents face such as lack of running water and adequate drainage [Photo: Sam Tarling/Save The Children/Executive]
The children and their families living in the camp rely on donors and the UN [Photo: Sam Tarling/Save The Children/Executive]
In Wadi Khaled, North Lebanon, the situation is little better. With just a blanket to cover the windows of the room in which she now lives, Khadiji, 5, and her family face a bitterly cold winter [Photo: Sam Tarling/Save The Children/Executive]
Unfinished and unfurnished, these rooms make for Spartan shelters for families. Fatmeh, 50, (right) said: "We only have seven blankets for nine people, including one I had to borrow from my neighbor" [Photo: Sam Tarling/Save The Children/Executive]
Mona, 16, holds Malak, her five-month-old baby, in the bare concrete room in which she lives. She said "we are using thin blankets to cover the windows but it is very cold at night" [Photo: Sam Tarling/Save The Children/Executive]
Eight year-old Fatma shivers as she sits on the concrete floor [Photo: Sam Tarling/Save The Children/Executive]
January 26, 2013 0 comments
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The Buzz

Morning briefing: 25 Jan 2013

by Executive Staff January 25, 2013
written by Executive Staff

Economics and politics

Libya will strengthen security around its oil facilities, officials said on Thursday, in the wake of a deadly attack on a gas site in neighboring Algeria.

More from AFP

 

The U.N. panel that settles claims for damages from victims of Iraq's 1990 invasion of Kuwait has paid out another $1.3 billion — bringing the total so far to $40.1 billion.

More from Associated Press

 

A combination of pro-government tribal leaders and businessmen looks set to dominate Jordan's next parliament again, after more than 1.2 million voters turned out in what supporters of King Abdullah II acclaimed as an endorsement of his policy of measured political reform.

More from The National

 

Police have clashed with protesters gathering in Tahrir Square in the Egyptian capital, Cairo, ahead of the second anniversary of the uprising that swept Hosni Mubarak from power.

More from the BBC

 

Companies

Early morning fog blanketed the UAE for the third consecutive day on Thursday causing yet more problems for air passengers.

More from The National

 

Iraq's semi-autonomous Kurdistan Regional Government (KRG) has awarded the operatorship of a major oil block to U.S. oil giant Chevron, continuing the consolidation of the region's oil sector into the hands of larger, better capitalized oil companies.

More from Iraq Oil Report

 

January 25, 2013 0 comments
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Economics & Policy

Unemployment in the Middle East

by Benjamin Redd January 25, 2013
written by Benjamin Redd

The International Labor Organization’s Global Employment Trends 2013 was released on Tuesday, January 22, 2013. The body has been recording data on global labor trends since it was established in 1919, and the report provides a snapshot into how working patterns in the Middle East and North Africa are changing.

Click here or on the map below to reveal our interactive graphs.
January 25, 2013 0 comments
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The Buzz

Morning briefing: 24 Jan 2013

by Executive Staff January 24, 2013
written by Executive Staff

Lebanese Prime Minister Najib Mikati said on Wednesday that despite the drop in the number of tourists this year compared to previous years, the banking sector in Lebanon saw its customer deposits surge.

More from The Daily Star

 

Gold could see record average highs this year and next, but its 12-year long bull run may be reaching a plateau as gains get smaller on expectations for monetary policy to stabilise in the United States and other key economies, a Reuters poll showed.

More from Reuters

 

The vice-speaker in Algeria’s parliament, Mohamed Djemani, noted that his country’s relationship with Iran has strengthened recently and voiced the hope that it would continue to do so in the future.

More from Nuqudy

 

Benghazi is seeking to become the development capital of Libya, with a number of new projects lined up.

More from Reuters

 

Jordanians have voted for the first time since the Arab Spring uprisings began in 2010, testing King Abdullah II's unprecedented political campaign to allay public frustration and encourage voting.

More from The National

 

Companies

Kuwait’s parliament approved an amended draft law on Wednesday paving the way for the long-overdue privatisation of Kuwait Airways, state-run news agency KUNA reported.

More from Gulf Business

 

AM Financials, a Lebanese financial institution offering online equities trading, has terminated its operations after the Central Bank withdrew its license.

More from Lebanon Business News

 

Debt-ridden developer Nakheel has announced a 57 per cent profit surge to AED2.017bn for the year ending December 31 2012. The company also saw  revenues come in at  AED7.8 billion, up 91 per cent over the same period.

More from Arabian Business

 

January 24, 2013 0 comments
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Economics & Policy

Mobile phone prices across the Arab world

by Benjamin Redd January 24, 2013
written by Benjamin Redd

The Lebanese are used to complaining about the price of their phonecalls, but are they really so much worse off than the rest of the region?

Executive mapped the price of a phonecall and a text across the Arab world and found some surprising results. Click here or on the map below to go straight to the interactive data.

 

January 24, 2013 0 comments
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The Buzz

Morning briefing: 23 Jan 2013

by Executive Staff January 23, 2013
written by Executive Staff

Gold held near a one-month high on Wednesday but faces a strong resistance at US$1,700 an ounce, as it struggles to attract fresh buying from investors who opted for riskier assets against the backdrop of a global economic recovery.

More from Reuters

 

Brent crude held above $112 a barrel on Wednesday, supported by a brighter outlook for the global economy while investors awaited inventory data from the United States for clues about demand in the world's largest oil consumer.

More from Reuters

 

Israeli Prime Minister Benjamin Netanyahu has pledged to form "start anew," after his alliance won a narrow election victory.

More from the BBC

 

Egypt recorded a 17 percent rise in tourists in 2012 and a 13 percent increase in income generated, the tourism minister said on Tuesday, indicating a steady recovery in the vital industry.

More from Reuters

 

Dubai used its first big debt sale of 2013 on Tuesday to show the world the glitzy desert city-state had well recovered from its credit crisis of four years ago, as investors scrambled to get a piece of the $1.25 billion deal.

More from Reuters

 

Lebanon’s Telecoms Minister Nicolas Sehnaoui has shrugged off allegations made by Future Movement MP Ghazi Youssef that he had embezzled government funds.

More from The Daily Star

 

Companies

The first phase of Doha’s new Hamad International Airport will open on April 1, initially accommodating 12 passenger airlines and low-cost airlines.

More from Gulf Business

 

Bahrain Telecommunications Co reported a 10th profit drop in 11 quarters on Tuesday as domestic competition and one-off charges from a cost-cutting program hurt the bottom line.

More from Reuters

 

The Beirut-based car company W Motors has completed the first prototype of its $3.4 million “ultra-luxury hypercar” and is gearing up to officially launch sales at the Qatar Auto show on Jan. 29.

More from The Daily Star

 

Lebanese nuts maker Al Rifai has ceased its cooperation with Kuwaiti partner Saleh Al Homaizi.

More from Lebanon Business News

January 23, 2013 0 comments
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The Buzz

Morning briefing: 22 Jan 2013

by Executive Staff January 22, 2013
written by Executive Staff

Economics

Brent crude edged up near US$112 a barrel on Tuesday as Japan was expected to pump in more money to boost its economy, adding to positive growth signals from the United States and China in past weeks.

More from Reuters

 

Saudi Arabia, the world’s largest crude exporter, said it cut production last month to adjust to decreased demand rather than to prop up oil prices.

More from Bloomberg

 

Gulf Arab countries have promised Yemen further aid on top of the $7.9 billion pledged by foreign donors last autumn, but an amount has yet to be specified, a Yemeni government minister said Monday.

More from Reuters

 

The Lebanese government’s 50-day plan to encourage tourism with discounts appears to be struggling after two weeks, with many hotels still empty.

More from The Daily Star

 

Rents in Dubai rose 16 percent in 2012 as confidence returned to the emirate's property market.

More from The National

 

Saudi Arabia has called for a minimum 50 percent increase in the capital of the Arab Fund for Economic and Social Development, a leading Arab soft-loan development institution, and urged more commerce between Arab countries.

More from Reuters

 

Companies

German luxury car maker Audi plans to double its Middle East sales to at least 20,000 vehicles a year by 2020, helped by investment in showrooms and service centres, its local chief said.

More from Gulf Business

 

The US$13 billion merger of Abu Dhabi's largest developers could free up stalled projects in the city as the new merged entity rethinks its strategy.

More from The National

 

Shares in Abu Dhabi's Aldar Properties drop 6.1 percent to a two-week low, extending losses since announcing an all-share merger with Sorouh Real Estate.

More from Arabian Business

 

Tamweel, the Dubai-based Islamic mortgage lender, posted a 11.3 percent drop in fourth-quarter net profit on Tuesday, Reuters calculations show, with the company blaming a full-year decline in earnings on provisions.

More from Reuters

January 22, 2013 0 comments
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About us

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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    Executive Magazine
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