Some easy New Year’s predictions: Monday, December 31, 2007
Blessed be the firework makers
Some easy New Year’s predictions: The personal touch
Tuesday, December 11, 2007
Du the math
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.
He must be short on thrills. Despite Du claiming to have passed the one million-customers barrier, a straw poll of friends and colleagues suggests very few people are using a Du number. Etisalat numbers continue to dominate – people still assume mobile numbers start with an 050 prefix. For the most part, the only people using a Du number are new arrivals; many Etisalat customers have booked a Du number, but don’t use it.
This is hardly Du’s fault. With no room to wriggle on price, the UAE’s second mobile operator has limited means to differentiate itself from the incumbent (not helped by both preferring lower case); there is not much of a compelling argument for consumers to shift operators. ‘I have a Du number but Etisalat matches the package, so why should I change,’ says one colleague.
Du has stated it wants 30 per cent of the UAE market by 2009. What it doesn’t say is whether this by market value, traffic or prefix.
Monday, December 10, 2007
Silent Salik
To the surprise of no one 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.
The RTA says the roll-out is part of “a major push to get people to use public transport”, reports Emirates Business 24|7 - though neither the RTA nor the paper bother to provide details of how. No details on tolls either.
There is nothing wrong in admitting this is a tax on drivers. Sailk is expected to raise Dh600m this year; details of how this money is being spent on tackling the traffic problem would be welcome. A public face for the RTA would be ideal.
Sunday, December 9, 2007
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”.Wednesday, November 21, 2007
How to be a popular boss
‘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.’
The crackpot pay hike is not dependent on productivity or experience – though Khaleej Times says ministry staff have “pledged to work harder to further boost the country’s progress and development”. Which is good of them. And, remember, there was a 25% raise last year. It is aimed at combating rising living costs, but is the same as thinking printing more money beats inflation.
Without getting into the merits of whether these federal workers deserved such a dramatic raise, it is extremely unlikely private sector business would issue a blanket wage policy without tying it into some kind of performance/appraisal scheme. It also undermines efforts to attract nationals into the private sector. What private sector boss can match the sweeping generosity of the government? If you’re a national, apply for work at the ministry and sit tight, this says.
Tuesday, November 20, 2007
Crowded fairways
As reported last week, superlative-fixated Dubai is to host the world's richest golf tournament. You can argue whether $20m represents value (selling expensive villas, golf tourism, and go-getting Dubai don't come cheap), though even some within the golf community thinks the money is crazy. The Dubai papers are full of the details this morning - with one glaring exception: what will happen to the 10-year-old Dubai Desert Classic?There's nothing to say Dubai can't host two big tournaments, but with the new $20m scheduled for November 2009 and the Desert Classic due two months later - are they too close?
Monday, November 19, 2007
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
Where there is benefit is in highlighting potential concerns for the future. The report highlights the difference in tax breaks for single and married workers. It also looks at flat-rate taxes and social security contributions.
Many observers say a tax environment is in the UAE inevitable (road tolls, municipality fees and state-owned service providers are already revenue-generating), and a consumer tax is expected to roll out. For expats with children, education is a de facto tax. Residents know they’re being taxed; for those yet to arrive there remains a certain appeal in saying you’re moving to a tax-free country. Losing this tax-free status is a significant step. How the UAE plans to introduce taxes will say a lot about the type of people it wants to attract.
Wednesday, November 14, 2007
Eco, my arse
Could they not have bought a real island, with its own water supply and pre-installed vegetation? Maybe one that didn't need A/C six months of the year.
Or, as Kipp suggests, was it Dubai's tough line on paparazzi that attracted them?
Tuesday, November 13, 2007
Winning friends, influencing people: Part II
ITP's Arabian Business last week ran a story saying work on Emaar's Burj development had stopped, as workers were on strike demanding better pay. By the next day the story was pulled, and no mention was made of the city's biggest labor dispute until an Arabtec press release appeared clarifying it was now business as usual. Yesterday Arabian Business awarded Mohamed Alabbar its Lifetime Achievement award, hailing the Emaar chief's 'far-sighted approach, innovative thinking and flawless execution'.There's no disputing Mr Alabbar's mover-and-shaker credentials, but ITP could be a little less crass with its timing.
Sunday, November 11, 2007
Form is temporary, class is permanent
As ever, the figures are ridiculous but Dubai might have got its sums right. The city wants to sell itself as the ultimate golfing destination (and flog some of those course-side villas) and, good as the Desert Classic is, it's no better than above-average. The city isn't interested in being an also-ran; it wants the best. If paying $20m gets it to the top-table, so be it.
The downside is money will only get you so far. You spend big this year, there could be someone else spending bigger next (Shanghai?). The Dubai World Cup, the world's richest horse race, is not considered the world's best horse race.
For that to happen, and for Dubai's $20m golf, the city must deliver quality. And deliver it continuously. It wouldn't hurt to create some tradition. At the moment the only tradition appears to be 'spend lots of money'.
Thursday, November 8, 2007
Clampdown on the mobile office
Bad news for the Saudi publishing industry: the country's traffic department says it will fine motorists caught reading the paper while driving. Phone users and drivers with children on their lap will also be slapped with a maximum fine of $134, says Arab News, quoted on Kipp. So it's also bad news for Mobily, and more work for nannies.
Wednesday, November 7, 2007
The Vanishing 40,000
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. Strange, seeing as this is the biggest news story to hit one of the biggest industries in what Mastercard this week claimed to be the Middle East's center of commerce.Locally, the Kipp Report is still following the story, mostly from AP reports. It appears the strike action is far larger than even AB was prepared to admit: some 40,000 Arabtec workers are involved, and they're asking for an extra $55 a month, up from a current $109. To put that in context, the Burj's Armani residences, on sale last week, start at $2,500 per square foot.
Tuesday, November 6, 2007
Flights of fancy
“Time matters here and one minute lost can cause a million-dirham loss,” says a
It is, of course, nonsense. It is a gimmick to suggest
In a city as small as
And who misses out on ‘million-dirham deals’ because they were a minute late? If the deal is that important to you, set off earlier. If
Monday, November 5, 2007
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 In reality 37th, sandwiched between
Given that the top 10 are rated for their stability, openness and ‘knowledge flow’ (or the number of patents/innovations produced), having a good airport and an open mind towards business does not seem all that great.
Sunday, November 4, 2007
Innovation over driving
This isn't a car blog, but...there was a 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.
Thursday, November 1, 2007
Hummer: planet saver
Fantastically provocative headline from InfluxInsights this morning: which is better for the environment - a Hummer or a Prius? It picks up an essay from Nathan Shedroff, a graduate of the Presidio School of Management's Sustainable MBA program, that questions whether consumers know the true cost of manufacturing, transport and product life. If a Hummer is made closer to market in a more efficient factory, and lasts twice as long as a Prius, is it really so bad? Shedroff doesn't have the answers, but he'd like consumers to start asking more questions. Think on it, next time you see a 'green' ad message.
Wednesday, October 31, 2007
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:
The brands are nothing more than logos, he goes on to say, the promises they pedal are lies. The promise, he says, takes place in the nitty-gritty of execution; of training people how to welcome customers; how to field calls with enthusiasm; to solve customer problems with determination; to see names where others see only numbers.
Tuesday, October 30, 2007
A quiet word
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.
Monday, October 29, 2007
Ministries can't stop meddling
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?
The meddling is the latest example of a culture of Government interference, and comes in the same week as the UAE commits to backing a Bahraini proposal to set a six-year visa cap on unskilled worker visas. And it is not unique: in the run-up to its presidential election,
Sunday, October 28, 2007
Spain plane pain eased
The UAE and Spain have finally signed to allow unlimited flights (for designated airlines) between the two countries. Which means Dubai residents will soon be able to fly direct to Madrid or Barcelona.Good that this happening, but why has this anomaly existed for so long? And are there other glitches in Emirates network?
Thursday, October 25, 2007
The Dunderhead 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 Wednesday, October 24, 2007
ITP & the art of joined up thinking
Two years ago Jumeirah International rebranded as the simplified Jumeirah. Arabian Business, less than impressed, labeled Jumeirah CEO Gerald Clueless. Or was it Hapless? Or Useless? Either way, it was a cheap play on the Irishman’s family name. The magazine then frothed about the wasted expense of dropping the ‘International’ tag and how the logo looked crap.Tuesday, October 23, 2007
Higher wages don't kill inflation
In 2005 public sector employees in
What this does show is Saudi’s sensitivity to the political impact of rising prices. The country’s huge numbers of civil servants have long benefited from easy work conditions and decent wages. They will be aware the country is enjoying bumper oil revenues, and that the economy is opening up. They want their share; the government wants to keep them happy. If their wages are not buying them as much, pay them more, seems to be the plan.
Thursday, October 18, 2007
Blessed are the Model-Makers
Cityscape, the world's biggest real estate show, and boom time for model-makers. If a fraction of what is planned actually gets built, then the Gulf will be transformed. Kipp has the slides.
Wednesday, October 10, 2007
Devon Burj
Funny. Jumeirah Group is threatening a UK developer with legal action if it doesn't change the Burj-like design of its planned Plymouth hotel. Looks part Burj, part JBH to me.This from the city that is building an Eiffel tower replica full of 'luxury' apartments.
Tuesday, October 9, 2007
Nike's community gamble
If a brand can recognise a specific customer need and do a nice turn in community marketing, it should be win-win, right?Possibly not. The Nike Air Native N7 has been produced in consultation with Native American tribes, will be sold only to Native Americans and a percentage of monies raised will go to Native American health programmes. Nike says Native Americans have wider-than-average feet (up to three width sizes larger than the typical Nike shoe) and that Native American communities suffer from higher than average levels of obesity and diabetes. There are less than 3 million Native Americans according to the 2000 census, and the N7 is a small attempt at tackling some of their problems. Nike hopes to raise $200,000 for welfare programmes.
As I see it, the downside is Nike has admitted its core offer is no use to Native Americans, it does nothing for non-Native Americans with wide feet, and other ethnic groups will want to know 'what do we get?'. It would be nice to think Nike will get round to everyone. As Kipp says: What price the Nike Air Arabia?
Sunday, October 7, 2007
News media, & self-censorship
Good piece on Kipp, via Communicate, on the intimidation of the media, and press self-censorship in the region.It’s like the worst kind of lion taming. Brutalize the animals until they behave, reward them when they do (perhaps with corporate press awards), then unveil your act to the public. “Look, the lions are not restrained. They balance on balls because they want to.”
The crowd politely applauds, but they long ago stopped paying attention to the program – and its corporate sponsors. What they really want is for the animal to bite the lion-tamer in the ass.
I'd like to say this is all the fault of the authorities, but I'm not sure I believe that. This blog is written anonymously - should it need to be? Most of the comments on the Dubai Media Observer blog are anonymous. If more journalists were prepared to speak up, go on the record, and back their colleagues, there might be some progress. Truth is, most expats are content to bumble along knowing they'll move on if the pressure gets too much.
Thursday, October 4, 2007
Business media buzz, or lack of
I've been enjoying Conde Nast's Portfolio magazine online, though I now hear the print version's not been selling too well. Lois Kelly at Foghound has a great piece on how the 'buzz' has not been great: too many high-anxiety stories, not enough inspiration, an absence of trends-to-decipher. A handy lesson for would-be publishers.
Wednesday, October 3, 2007
The hellevator
There are 31 floors in this building, and it can feel like I've stopped at all of them some evenings as the office empties. I read an interview last week with Akbar al Baker, CEO of Qatar Airways, in which he fumed at people pressing the 'up' button when they wanted to go down, and vice versa. If I use the lift here four times a day, this will happen at least once: some dumb fug standing blankly as the doors open at the 11th wanting to up, as we're heading down.Lifts clearly aren't as simple as we think. Maybe the up/down buttons needs more explanation. Or maybe I'm the dumb fug, and Blankly 11 is zipping up and down, double quick.
Tuesday, October 2, 2007
Copy cabs
Abu Dhabi is getting a fleet of London cabs (painted pearly white). The fools think the cabs will be an icon of the city. They won't. With a Guggenheim, Louvre, cookie-cutter F1 track and Warner Bros theme park on the way (and copies of Dubai's Film Festival and golf championship already in place), the UAE capital is fast gaining a reputation for unoriginality. Plenty of cash, no idea.In London, the cabs have become iconic because there are 1,000s of them and they've been running for years. In Abu Dhabi they will just look tacky.
Monday, October 1, 2007
Gazing down, clever branding
The Media City Ramadan tent is sponsored by Schon Properties. Nothing remarkable about that (international company wanting to show it 'gets' Islam), what is clever is they've branded the roof of the tent. With four (and counting) 25-story towers circling the area - along with five low-rise office blocks - there must be plenty of eyeballs looking down. The company is brand building, and big outdoor sites are an obvious route, doing something a little different helps breaks throughWith little regulation on outdoor advertising, expect to see more of this: car roofs, low-rise residential blocks (the Greens is surrounded by high-rise), commercial transport, bald guys.
As ever, there is no shortage of media in Dubai; what is sometime missing is a creative use.
Sunday, September 30, 2007
Big tent, tall building


Went to Emaar's Ramadan tent at Burj Dubai on Thursday night. An excellent extension of the 'Downtown Dubai' brand: modern, Arabic, stylish, quality food, cool music, and a cosmopolitan crowd. The idea is a bit of a risk for Emaar - the area is a building site, you have to drive through an underground car park to find it, directions are lousy, and there are other Ramadan-specialists - so full marks to them for giving it a go. And there wasn't any sales push. Models of the development were tucked away in the entrance, and tables were flyer-free. Now, if they could get a drinks licence, it might make for a great Eid party venue.
Thursday, September 27, 2007
Awash with coffee
"We have very big plans,” says head of international business development Khurram Begg, “it is not the case we are just testing the ground, we are very certain.”