Dumb Bahrain tastes Dubai's strike strife

Dubai, so often the pioneering driver of economic development in the Gulf, is well used to having neighbors copy its ideas. There must be a sense of satisfaction this morning to see the neighbors also get lumbered with some of the downsides. Workers on Bahrain's Durrat al Bahrain project are striking over pay and conditions, and their bosses appear to have no idea how to sort the problem.

Media reports claim more than 1,000 workers are now locked in their camp, as the bosses on the $6bn project scratch their heads. The workers have been on strike for the past two days demanding better pay, hot water, better medical facilities and other basics such as lights in the toilets. They are being paid $150 a month and have been encouraged in their complaints; the Indian Ambassador says his government is planning to impose a minimum wage of $265 for all Indians in the Gulf.

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Early contender for Quote of the Year

"A lord with billions in Great Britain cleans his own car on a Sunday morning, whereas people of the Gulf look for someone to hand them a glass of water from just a couple of meters away."

So speaks Majid al-Alawi, Bahrain's labor minister, quoted in Asharq Al-Awsat. Fond of the colorful quote, he says the Gulf is in danger of being swamped by an "Asian tsunami" of expat workers because locals are too "lazy" and "spoilt" to do simple tasks themselves, and that the threat is "worse than the atomic bomb or an Israeli attack".

I've heard these sentiments expressed several times in expat hostelries, but hadn't expected it from a government minister.

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Tax: enough chat, get on with it.

More mutterings about tax in the Gulf, this time from Bahrain. Khalifa Al Dhahrani, speaker of the Bahrain Parliament called for levying taxes on profits of foreign commercial institutions. As usual in these things he did not specify the tax rate or suggest a date for applying the new regime.

"Bahrain has limited sources of income and relies heavily on oil to fund its spending. Now it needs to diversify its sources, expand its financial assets and preserve the rights of the future generations," says Al Dhahrani, reported in Gulf News. "It is only fair that foreign investors should contribute to the expenses by paying taxes."

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From first to third

For a time it had all looked so promising. With the FIA concerned about maximizing the viewing figures for the opening race of the F1 season, and the incumbent Melbourne GP unable to push back its start time, Bahrain was suddenly slated to take pole. With Abu Dhabi joining the calendar in 2009 the odds had looked good for a two-week swing through the Gulf next year. Extra publicity, more time with the teams, better marketing opportunities.

A week on and it has all fallen in a heap. Melbourne will continue as race one, Malaysia is at two, Bahrain at three. It is no disaster but, if no one even remembers who came second, third really is anonymous.

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Wanted: buyer with a plan

The Kuwaiti government wants to sell an 80% stake in loss-making national carrier Kuwait Airways, state news agency KUNA said earlier this week.

The news comes as Oman gets to grips with its own Oman Air and Bahrain takes on full responsibility for Gulf Air.

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Safe landing

After 33 years of going nowhere, Gulf Air has made one safe landing that promises to reverse its fortunes. With Oman completely pulling out of the beleaguered airline at a dramatic extraordinary general assembly in May, Bahrain has regained its 100 percent ownership. Most believe the latest turn of events will help the kingdom redefine its priorities and establish itself as a tourism destination using Gulf Air as a catalyst. It’s a case of better late than never as the airline, by its own admission, was bleeding over $1 million a day and even more if other costs such as financing are included. Another estimate suggests that the carrier’s accumulated losses and costs, including for 2007, would amount to 254 million Bahraini dinars ($675 million). Gulf Air was founded in 1974 and was owned equally by the governments of Bahrain and Oman, after Qatar and Abu Dhabi withdrew in 2002 and 2005 respectively. Read More...