Thrillingly sensible

Emaar Malls has inked a deal with Sega Corporation to develop and operate indoor theme parks. Emaar plans to spend $4bn opening 100 malls across the Middle East, North African and Indian subcontinent. Sega is a global leader in interactive entertainment facility operations.

I can't find anything to fault in this. Good business marrying up with another good business to create a better business. I'm sure large sums were involved, but that shouldn't detract from the business sense.

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In praise of...rain

Rain in the desert is a wonderful thing. Nourishment to parched ground, damping down dust, and, for Dubai, helping wash away the grime of a polluted city; it has also tested Dubai business.

• Road builders will be examining their drainage systems

• House builders will be praying the new roof is water-tight

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King of the Roads

If nothing else, at least now Dubaians realize the importance of Sheikh Zayed Road. Close the road, the city stops.

Business may grumble that Monday's public holiday – the fifth consecutive working week interrupted by a holiday – was called late, but it was unavoidable. For security reasons, the visit of George Bush to Dubai is not something that can be flagged in advance. If the authorities then choose to close down the city's main artery for 10 hours, along with closures on feeder roads, then there is little option but to tell people to take the day off and stay home.

It is a pity Bush never got to see the real city, warts and all. The presidential bubble must think the world is full of clear roads, and smells of fresh paint.

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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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Pirates of the Arabian

Almost every office I've worked in has used hooky software, the building here is happy to allow Chinese DVD hawkers to go door to door, and holidaymakers include trips to Karama on their itinerary (my Christmas guest bought four handbags, one watch and a purse). I have friends here who are first name terms with their supplier of fakes, one recently had an order of Paul Smith shirts knocked up for less than 70ds (full retail price: 700ds). And they weren't bad.

The UAE claims to stringent laws have kept piracy and counterfeiting under control. "While it is a serious matter in the entire Middle East it is not so serious here due to stringent measures and tough laws introduced since the mid-1990s," Mohammed bin Abdul Aziz Al Shihhi, Planning Sector Undersecretary, tells Emirates Business. "The UAE takes the issue very seriously as it is directly linked to foreign investment."

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Class, not exclusivity, for sale

One of the major, modern headaches of ambitious brand owners is how far to take the brand. Pressure on revenue says roll out the brand into new territories (or categories); protecting what you have says don't dilute the magic.

Starbucks is in the middle of such a headache, Fast Moving Consumer Goods giants such as Unilever and Proctor & Gamble face it every day. Right now, the Louvre, icon of France and Paris' star museum, must be having its own internal wrangle.

The museum inked the latest stage in its deal to open a Louvre Abu Dhabi. There are $525m-worth of good reasons why France-Museums made the 30-year deal; the question now is how far do they take this roll out? Can we expect Louvre Rio, Louvre Cape Town or Louvre Auckland?

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When bureaucrats meet business

As Kuwait's banking community tells its country's lawmakers to stop meddling in monetary policy, Saudi's Shoura Council is stepping up its interference in small business issues. An incredibly detailed new law, awaiting Council of Ministers' approval, plans to govern the summer opening times of sheesha outlets, decide when highway food stops must close, and the winter hours of amusement arcades.

The Shoura Council says the law is the result of two years of research and study. It reiterates that all shops should be closed during prayer times, regardless of the season.

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New media, old habits

Authorities yesterday finally allowed a family member to meet detained Saudi blogger Fouad Al-Farhan in prison, Arab News reports. Al-Farhan's father-in-law met him for one hour inside at Jeddah's Dahban Prison where the Saudi blogger has been held for the past 27 days.

The 32-year-old Jeddah-based, the first Saudi blogger to use his real name, has been interrogated for 15 minutes every day since his arrest. The authorities have not explained the reason for his detention, other than to say he violated "non-security regulations".

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Toilet paper

This morning's Financial Times leads with 'Dollar fear sparks rush to oil and gold', the Wall Street Journal also goes with oil ('Oil Hits $100, Jolting Markets'). Emirates Business 247, the UAE's month old business newspaper (advertising slogan: 'Hungry For Dominance?') goes with 'Sheikh Mohammed the leader of change'.

This, according to Emirates Business, is a news story. Presumably this time last week Sheikh Mohammed wasn't a leader of change, but, perhaps thanks to some change of policy over the new year break, he now is. Whatever, Emirates Business' gushing 400 words don't tell us much – other than that tomorrow is the second anniversary of Sheikh Mohammed's ascension as the vice president, Prime Minister and ruler of Dubai.

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More sex in the city

Women make up less than one per cent of executive boardroom membership of Dubai Financial Market-listed companies. Of the 371 boardroom members, just three are women. And none are based in the UAE.

There are many ways to read this Emirates Business survey, but 'less than one per cent' is 'less than one per cent' whichever way you slice it. In Norway, 36 per cent of boardroom members are women – and there is a government target of 40 per cent.

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Blessed be the firework makers

Some easy New Year's predictions: Dubai's fireworks suppliers will enjoy a bumper start to the year, those looking for a second-hand, barely-used Lexus will find a bargain, and February Fridays at Mall of the Emirates will be a living hell. Welcome to 2008. Welcome to Dubai Shopping Festival.

A DSF press release, helpfully reprinted by Gulf News, informs us weekend firework displays will last 20 minutes (2007's were a paltry three minutes), more than 90 Lexus and Nissan cars will be raffled (only to appear next day at 4x4 Motors), and visitors numbers will be up from 3.5million to nearly 4m.

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The personal touch

As Dubai involves itself in ever larger, and more diverse international deals, it is nice to be reminded that not every deal is based on hard cash and bottom lines. We're told Sri Lanka's decision to revoke the work permit of its national carrier's CEO – a guy out in place by Emirates – will have an "extremely negative" impact on talks with Emirates over the renewal the contract to run the airline.

Never underestimate the power of the personal relationship, particularly, according to the Financial Times, when as many as 70 percent of businesses, either private or listed, are family controlled. Forty per cent of the Fortune 500 companies still under family control.

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Do the math

In a meeting with Coca Cola senior management a couple of years ago, the company's regional md revealed how his life is governed by a continuous check of Coke's retail presence. Every day, in shops, on planes, in bars, at vending machines, was spent checking whether Coke was beating Pepsi?

In this morning's Emirates Business 24/7, Osman Sultan, CEO of Du, admits to a similar compulsive disorder: he says he feels a "quiet sense of achievement" every time he answers a call from an 055 prefix.

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Silent Salik

To the surprise of no one Dubai's Salik road toll system is to be expanded to all major roads and bridges in the city. Electronic gates will be installed on Emirates Road, Al Khail Road and Al Ittihad Road by 2009. Salik will also be introduced at Shindagha Tunnel, Business Bay Crossing and Maktoum bridge.

Since Salik was introduced in the summer, the RTA has inched towards some degree of public interaction. There has been a sharp increase in the number of RTA ads appearing in press and billboards. It is now advertising its complaints line: 800 9090, http://ecomplain.dubai.ae, or fax to 04 206 5532. It might have been nice to flag up some concept of dialogue before the next phase of expansion: a suggestion that public feedback might be taken into consideration.

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Tough business

The UAE is a regional business center, UAE companies make the international news, the country needs a daily business paper. This appears to be the logic behind Arab Media Group's relaunch of its Emirates Today title to Emirates Business 24/7. The new paper debuted on Sunday 9 December with the publisher confident it will become "an integral part of the life of top executives and decision-makers in the private and public sectors as well as a reference for investors".

Good luck to them. Given the difficulties in securing a license to print new newspapers (and ITP's inability to launch a daily business title), Business 24/7 could be a spoiler from AMG – 'if we can't crack the market with a general newspaper, we'll pioneer the business daily sector'.

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Cultural mash-up

Recent studies by the World Economic Forum and Moutamarat/Insead have highlighted regional business leaders' concerns about the supply of qualified personnel in the Middle East and particularly in Dubai. Industry trade magazines covering fields from marketing to manufacturing have also written articles about the difficulties companies face in hiring good staff.

While I wholeheartedly agree with the sentiments reflected in these findings, I would suggest that we in Dubai should start looking at things differently, especially in terms of how we calculate the caliber of our human capital. This is particularly true in industries such as communications, where creativity and innovation are at the heart of what we offer clients.

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Now go ask your boss for a 70% raise

'Federal government employees, both nationals and expatriates, have hailed the directives of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai to raise their salaries by 70 per cent.'

I bet they bloody did.

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Beyond tax-free

The UAE has one of the world's most attractive personal tax environments according to a new global survey of expatriate hot spots by Mercer. I don't know how long it took Mercer to compile the report (it canvassed 32 countries) but the UAE section should have easy enough: note for next year, guys, there is no direct taxation here.

At first glance the report, Mercer's Worldwide Individual Tax Comparator, makes bland enough reading. The UAE is top, what more do we need to know. It is cost-of-living and competitiveness reports that we're most interested in. How or how much expat workers can get for their dirham overseas. Or what it costs to rent a two-bed apartment in downtown Moscow, Bangkok or Cape Town.

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The Vanishing strike

AP says 40,000 construction workers in Dubai are on strike and refusing to budge. Strangely, the local media fails to report this.

It is one of Dubai's flagship developments, being carried out by one of the city's most ambitious companies and will create an iconic image for the Gulf. So when work grinds to a halt as workers demand an increase in pay you might expect the local news to take an interest?

Yes, and then no. Arabian Business yesterday reported workers on the Burj Dubai were striking for the sixth day running. The 3,000 Arabtec-contracted laborers were refusing to leave their camps and work on the world's tallest building had ground to halt. This morning, AB has pulled the story, and there is no mention in any of the other local media.

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Flights of fancy

"Time matters here and one minute lost can cause a million-dirham loss," says a Dubai businessman, fluffing up an Emirates Today story on the launch of a new helicopter air taxi. The service is hailed as an innovative solution for go-getting business champions to beat Dubai's traffic snarl-ups.

It is, of course, nonsense. It is a gimmick to suggest Dubai is an every-second-counts kind of town; that businessmen are whisked for meeting to meeting, concluding mega-bucks deals. The reality is that most meetings drag on for hours, are interrupted by endless mobile calls, and that you leave without a decision being made. In 10 years living in London, a city with far worse traffic and far bigger deals, I never once heard of a businessmen using a helicopter to make an intra-city trip.

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Who remembers 37th place?

Mastercard is in town pushing its Worldwide Centers of Commerce Index and while there are few surprises in the top 10 (see if you can list – one point per city, bonus point for the right ranking), it seems puzzling to see Dubai only at number 37. Puzzling, that is, if you believe all the IPO announcements, takeover deals and real estate mega-project launches make Dubai the center of the world.

In reality 37th, sandwiched between Bangkok and Kuala Lumpur, is no bad effort given how much Dubai has progressed over the past 10 years. But Mastercard's assessment seems to be damning it with faint praise: The region's air and cargo traffic hub, Dubai also claims a flexible business climate that makes it optimal for growing companies.

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Innovation overdrive

Great story in the Wall Street Journal last week: a former SAP exec, flush with $200m of venture capital backing, plans to overhaul the automotive business model. Why can't the car industry be more like the mobile phone industry, is the basic gist of his argument.

Shai Agassi has no experience of the auto market, but he does have a very clear goal: to change the way electric cars are sold. Car makers will sell the shell of a car (the handset), he will sell the battery and top-up power (the SIM card and call credit).

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Promises and lies

The difference between what a company promises, and what it actually delivers is known as the 'brand gap'. Here are some words of wisdom from Mark Stevens in Brand Week:

'Then there's clubby little Starbucks. The brand says, in effect, "Your home away from home. Your second living room. Your refuge from the rigors of the day."

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Speak, not strike

The UAE government says it will deport the workers rounded up after riots at a Jebel Ali labor camp. The Labor Ministry called the protests "uncivilized" (stones were thrown and police cars damaged) and that it won't tolerate illegal strike action.

The workers can't say they weren't warned. The authorities have always insisted on a zero tolerance approach to labor relations, and that they will listen to any legitimate complaints. It can point to progress on contract disputes, wage increases, working hours, accommodation, transport, and summertime breaks.

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Let them eat cake

The meddlesome Ministries are at it again. The UAE's Higher Committee for Consumer Protection, under the Ministry of Economy, is telling private business what they think constitutes a right and proper price rise. Water, rice, cement and fast food suppliers are affected.

The move is a response, reportedly, to a 30% price hike by Oasis water during the summer. Consumers complained and the Ministry felt it should act. Could they not have told consumers to buy another brand of water?

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Travel: good for business

In 1492 the Christian monarchs Ferdinand and Isabella won control of Spain, forcing the Moors to leave the Iberian peninsula after seven centuries of rule. Today, for UAE travelers wanting to get from Dubai to Madrid or Barcelona it must have seemed the Spanish were still holding a grudge. Despite the huge growth in Emirates and Etihad, and with Spain being one of Europe's busiest tourist destinations, it has been impossible to fly direct between the UAE and Spain.

That is set to change following a deal to allow the designated airlines of each country to operate unlimited weekly flights in each direction with any type of aircraft. The deal also includes cargo services.

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Swimming with sharks

There is research that gives you fresh insight, and there is research that confirms what you already know. A report this week from Zurich International Life which tells us expats in the Middle East are loathe to use financial advisors, is very much in the latter category.

While one in three expats say savings and investment is their number one priority, less than 10% turn to financial advisors for advice. Most prefer to take advice from family and friends, 38% work things out for themselves. Worryingly, just 2% of expat Arabs use financial advisors.

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Business lessons from comic books

A regular plot line in the comic book stories of Kipp's youth was the use of the 'congratulations, you're our one thousandth customer' device. The trick could be applied to pie shops, toy stores and football clubs, and the figure would change to suit the tale. The lucky customer would then be gifted a large cash sum/year's supply of pies, and be rescued from some terrible fate.

I say all this apropos of Air Arabia recently announcing it had carried it five millionth customer, a tidy figure given the airline has been running for only four years. The news was tucked away in a financial report, and while it would have made good reading for market analysts it seems to be a wasted marketing opportunity.

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Hit by inflation? Raise wages!

In 2005 public sector employees in Saudi Arabia were handed a blanket 15% increase in wages. The gift was not dependent on pay scale or performance; with the economy booming the Saudi government reckoned its huge number of civil servants, all Nationals, deserved a slice of the action.

Two years on and inflation in the Kingdom is running at a seven-year high. Rents in August were up a record 12.1%, with food product prices up 6.6%. Puzzled by this, the government has convened a special council to look at ways of tackling inflation. The panel has just recommended a pay rise for both private and public sector workers.

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Hare-brained 6-year cap on expats gathers pace

The Gulf states have possibly the highest reliance on foreign labor than any region on earth. It is estimated more than one third of the GCC population is made up of foreign workers. Every industry, from banking to media to construction to aviation is propped up by overseas talent.

The situation has led to much grumbling from GCC labor ministers. "In some areas of the Gulf, you can't tell whether you are in an Arab Muslim country or in an Asian district," Bahrain's Labor Minister Majeed Al Alawi told the media last month. He is now proposing a six-year limit on unskilled workers in the region, a proposal the UAE says it will support at next month's meeting of GCC labor ministers in Riyadh.

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