Archive for August, 2008

A business trip to Rio de Janeiro, the home of the hedonistic carnival, is an alien concept to most people. One does not go to Rio to work, one goes to Rio to get away from the stress of work. Perhaps it is the allure of picturesque vistas and the proximity of two of the sexiest beaches, Copacabana and Ipenama, that has encouraged more Business to choose Rio as a M.I.C.E. (Meetings, Incentives, Conference and Exhibitions) destination.

The city of Rio now boasts large state-of-the-art auditoriums suitable for hosting events in very appealing surroundings. Organisers are now able to offer international organisations looking to hold a meeting or exhibition, a comprehensive event package. From organising fairs, congresses, exhibitions, to social gatherings the support services on offer include creation, planning, and production of an event. The technology available covers all the necessary audiovisual equipment, simultaneous translation, transport and travel as well as accommodation in internationally rated business hotels.

Let’s analyse; a growing economy, the largest convention centre in Latin America, over US$ 1 billion in investment to improve infrastructure and a vibrant nightlife perfect for a little indulgence after a hard days work. While the lure of the Carnaval is strong and representative of what Rio de Janeiro has to offer, the current focus is no longer just the pleasure seeker.

A Bit about Rio

Over the last few years Rio has become the preferred destination for conventions, exhibitions and incentive trips. For the past eight years the International Congress and Convention Association (ICCA) has ranked Rio de Janeiro in 1st place, in America’s Ranking, and 26th in the world. From 2003 the number of events organised in Rio has continuously increased year on year and over 200 events have already been confirmed for 2009.

English: Aerial view of Rio de Janeiro city ce...

English: Aerial view of Rio de Janeiro city center, Rio de Janeiro, Brazil. Português: Vista aérea do Centro da cidade do Rio de Janeiro, Rio de Janeiro, Brasil. (Photo credit: Wikipedia)


Ensuring that business visitors to Rio are well looked after, the current 23,000 hotel rooms will be increased to 28,000 over the next few years. With invest in the hospitality sector seen as a strategic, as well as, financial decision many international hotel chains are developing properties in Rio. With an emphasis on offering excellent convention centers, with the capacity to host over 2,000 people, most new hotels are focusing on the lucrative business travel market.

Factoid

  • According to the World Bank, Brazil has a GDP of US$ 967 billion. Earning Brazil a spot in the top ten overall world GDP ranking.
  • According to the World Trade Organisation (WTO) Brazil ranks 28th overall on the list of leading exporter countries.
  • The World Investment Report, list Brazil as the 2nd principal destination of Foreign Direct Investment (FDI), second only to China.
  • Mobile telephone use in Brazil is 86.21 million, with 25.9 million Internet user.

Rio is a city that is buzzing, not just to Bossa nova beat, but with a creative energy since many long-awaited projects are finally complete, validating the investments into newer projects. When Rio hosted the United Nations Conference in 1992 the federal government realised that the revenue generated by the year-round business traveller was worth a substantial investment. Since the conference the government has poured more than US$ 1 billion to develop Rio’s infrastructure. In addition to the millions spent on satellite communications the most obvious investment was the construction of a huge convention centre: RIOCENTRO.

Riocentro

One of the most overlooked aspect of Rio is: Riocentro, the largest convention centre in Latin America. The centre has five large pavilions which offers a total of 571 thousand m² of exhibition space. The centre is strategically located right in the heart of Barra da Tijuca, a modern and rapidly developing area, which is served by large shopping malls, show houses and most importantly the beach.

Barra da Tijuca is located in Rio’s Zona Oeste (Western Zone), which forms the boundary between Zona Norte (North Zone) and Zona Sul (South Zone). The North Zone comprises of Industrial neighbourhoods while the South Zone is full of middle to upper class neighbourhoods nestled alongside beautiful beaches. The boundary between these two zones is home to important museums and colonial buildings.

Accolades

  • Rio de Janeiro was elected best Latin America Destination.
  • American GQ magazine included Rio as one of the top ten best places in world to work according to foreign executives interviewed.
  • The World Travel Awards gave Rio de Janeiro and RIOCENTRO, respectively, the prizes for best tourist destination in South America and best Conventions Centre in South America.
  • Conde Nast’s Traveller magazine included Copacabana Palace Hotel and Caesar Park Hotel in Ipanema, both in Rio, among the best hotels in the world.

The Riocentro has two floors with a built up area of 28,400 m², inclusive of a 2.5 thousand m² hall for exhibitions and an auditorium with 2,400 seats. The hi-tech features of the auditorium include simultaneous translation booths, sound system and projection system. The 2nd floor is spread over a 1000 m² with four rooms capable of accommodating 600 people, in addition, to a bar and service area.

Business amenities available include Wi-Fi networks, presentation equipment and technical services, internal transportation and medical stations, and a parking lot for up to 7 thousand cars. While the convention center is designed with functionality in mind, it does not neglect the aesthetic aspects. The natural lagoons and gardens all add to the tasteful design. The helicopter pad also provides the time-short business executive an excellent mode of transport so as to beat the Rio traffic jams.

Brazilians do it differently –

The etiquette and customs of doing business in Rio are quite different from what most business travellers are used to in most major cities. Some key points to remember when meeting a business associate are:

  • Do exchange business cards and shake hands individually at the beginning of the meeting.
  • Do avoid a group hello or goodbye.
  • Do expect business to be conducted over dinner. In this case, do bring gifts.
  • Do address the Brazilian counterpart with the formal ‘senhor’ (male) plus the surname or ‘senhora’ (female) plus the surname, until you are told otherwise.
  • Do treat the Brazilian counterparts as equals. Do not question their intelligence or background.
  • Do receive third-party introductions, whenever possible.
  • Do schedule meetings at least two weeks in advance.
  • Do expect frequent interruptions and delays at meetings.
  • Do accept invitations to your Brazilian host’s home. Do bring a tasteful gift such as candy or flowers. However, avoid foreign liquors as gifts.
  • Do maintain your patience in conducting business.
Tips for the Business Traveller –

  • Courier/Messenger Services: DHL Tel.: +55 11 3618-3200 / FedEx Tel.: +55 11 5641-7788 / UPS Tel.: +55 0800 109-226
  • Tipping: Beauty salons 10% to 15%; Bars 10% to 15%; Restaurant 10% (automatically included); additional 5% to the waiter/waitress; Hotel 10% (automatically included); Taxi Round up to the nearest Real; Porters and Skycaps R$1 per bag; Room Service 10%
  • Time Difference: Rio is in the Western Standard Time Zone (GMT -3, except GMT -4 from last Sunday in March to Saturday before last Sunday in October)
  • VAT & Taxes: Sales tax is 18%. The hotels in Rio also charge a 5% accommodation tax
  • Voltage: 110V/220V AC, 60 Hz. Two round-pin plugs are standard
  • Exchange Rate: 1 AED = 0.529430 BRL

When To Go

Rio experiences the highest influx of visitors between December to March due to the pleasant weather and for the most part: the five days of Carnaval. With the hordes of pleasure seekers out in full force to take advantage of the overindulgence that is Carnaval, this would probably not be a good time to schedule business, or would it? The most telling effect of the influx of visitors is the sharp increase in prices and the lack of hotel room due to the crowds.

The city’s humidity can be high in summer, with temperatures hovering around and above 28°C (82°F); while October to January are the wettest months. Winter in Rio characterised by temperatures of around 23°C (73°F), with a mix of both rainy and superb beach-going days. If your trip to Rio is purely for business then the weather should not dampen you plans. However, if you plan on celebrating a successful business trip to Rio, then the beach, nightlife and rich culture of one of the most beautiful cities in the world beckons.

Rio, more than just business

The five heady days of Carnaval are not the only attraction that the diverse city of Rio offers. If your business has concluded and you have a some time to spare then there is much more to Rio than just beautiful beaches, and one of the 7 wonders of the World. A quick look around the city will tell you why so many Miss Worlds have originated from South America, but if you can tear your eyes away from the attractive locals the city has much to offer.

The quaint colonial streets where people rely on face to face communicate to relay a message are a sharp contrast to the super fast wireless Internet accesses at most hotels. The magnificent churches pay homage to the city’s 70 percent Catholic heritage. While leafy plazas still reflect the old world charm of Rio, an age before business came before a good afternoon siesta. 

Português: Praia na Barra da Tijuca, na cidade...

Português: Praia na Barra da Tijuca, na cidade de Rio de Janeiro, Brasil. (Photo credit: Wikipedia)


After siestas can fiestas be far behind? Rio celebrates a number of religious festivals, or Festas, through out the year. The Savvy business traveller needs to ensure that no urgent work is scheduled during the week of a Festas. The Festas Juninas, one of the most important festivals, is held during the month June while Festa de NS da Gloris do Quteiro is held in August. One of the largest religious festivals, Festa de Penha, is held every Sunday in October. All festivals are very public displays of faith and belonging with public centers being transformed with colourful stalls, street processions and loud music.

Flight information

Air France –

Flies daily from Dubai – Paris – Rio de Janeiro with an approximate flying time 24h 40mins

Flies daily from Rio de Janeiro – Paris – Dubai with an approximate flying time 35h 20mins

Business Class Fare: AED 13,090 per adult return

British Airways –

Flies from Dubai – London – Rio de Janeiro on Sunday, Tuesday, Thursday, and Saturday with an approximate flying time of 23 Hrs

Flies from Rio de Janeiro – London – Dubai – Sunday, Tuesday, Thursday, Saturday with an approximate flying time 32 Hrs

Business Class Fare:AED 19,840 per adult return

*Ed. Note: Some flights are scheduled to stop en route and may require a change of aircraft.

Where to stay –

Pestana Rio Atlantica is located on the beautiful Copacabana Beach a few minutes from the Financial Center of Rio de Janeiro. The hotel has 217 well appointed rooms with high speed Internet connections in all the rooms. The business center is replete with all amenities and 21 meeting rooms offer ample space for large meetings or conferences.

InterContinental Rio is a luxury hotel that is also one of Rio’s finest hotel for business and events. Located near the beach, the hotel offers views of the famous Sugar Loaf Mountain with dedicated executive floors and suites. The comprehensive business facilities and amenities include 22 function rooms, audio visual equipment, secretarial services and high speed internet access.

Sofitel Rio de Janeiro is the ideal hotel for business meetings and conferences with comprehensive services and facilities for every event. These include 15 function rooms, a business centre, wireless internet access, photocopying, print and fax services. Located on Copacabana beach the hotel offers the business traveller the added advantage of lively nightlife once business has been concluded.

Hotel Booking Details –

  • Pestana Rio Atlantica – International: +1 210-507-5995
  • Sofitel Rio de Janeiro – Tel : (+55)21/25251232
  • InterContinental Rio – Hotel Front Desk: 55-21-33232200

Epitomised by the statue of Christ the Redeemer, on Corcovado Mountain, the outstretched arms are a reflection of the friendly demeanour and generous attitude of the people of Rio de Janeiro. As a melting pot of nationalities, colours and religions, Rio welcomes visitors in all shapes and sizes from all walks of life.

When one envisions the playgrounds of the rich and famous, the image one conjures is of waves as blue as azure lapping gently on the fringes of white sun kissed beaches. While rich business tycoons and beautiful celebrities lounge around chatting to one another, bodyguards remain on the lookout for annoying fans and paparazzi, while valets scuttle cocktails here and there.

The reality of the situation though is that when the rich want to get away, they prefer to vacation in private confines, away from the madding crowd. Although, lounging by the poolside or on sun-drenched beaches while observing other people, for a change, is an emphatic benefit.

Exclusivity 

That is why Australian and international jet-setters flock to Balmy Palmie, Sydney’s answer to St. Tropez. Palm Beach, or Balmy Palmie in true Australian lingo, Pearl Beach and South Coast, all boast celebrity owners such as Nicole Kidman and Australian media mogul James Packer or Russell Crowe and Kylie Minogue.

Kalua, home of Hawaiian businessman Ian Joyce, is a favourite rental holiday destination of the super rich and famous. Before purchasing her own piece of holiday heaven here, Nicole Kidman used to rent the property at US$40,000 per week. Another celebrity who has enjoyed this relaxing getaway by the sunny beaches of Sydney is comedic legend and founder member of Monty Python: John Cleese.

Fact:– US$15,000 a week will get you a chic modern pad nestled in the lush forests of Byron bay overlooking the majestic Pacific ocean. This includes an army of staff from chefs to florists ready to cater to every request while discreetly blending into the background so as not to bother you.

US$35,000 per week will get you a luxurious apartment with all amenities and facilities right in the heart of the Sydney.

Sydney is one of the few cities in the world that offers a bustling metropolis just 20 minutes from the beach. For celebrities such as Greg Norman who prefer a city getaway there are exclusive penthouses in the heart of the city which offer stunning vistas. If you prefer the convenience of a hotel then there are numerous 5-star hotels dotted along the beach or in the central business district. With exclusive valet and personalised attention you can be assured of your privacy and anonymity for the duration of your stay in Sydney.

 

Sydney Opera House 

English: Sydney Opera House with a tall ship i...

English: Sydney Opera House with a tall ship in the foreground (Photo credit: Wikipedia)

The Opera House is the most recognisable landmark in Sydney. Built in 1957 by Danish architect Jørn Utzon this wonder of the world has an iconic curved sail-like roof construction which is considered a miracle of modern engineering. No visit to Sydney is complete without a visit to the Opera House and with 1,500 world-class performances held every year the true culture connoisseur will be spoilt for choice.

Main Presenters:Opera Australia, Sydney Symphony, Sydney Theatre Company, and The Australian Ballet. 

Other Presenters:

Australian Chamber Orchestra, Bangarra Dance Company, Sydney Dance Company, Sydney Philharmonia Choirs and The Bell Shakespeare Company. 

The High Tea experience at the Opera House is a unique opportunity for the affluent visitor to sample a signature menu created by celebrated chefs, followed by an inspiring opera recital or symphony. The concept of High Tea at Bennelong restaurant captures the spirit of Sydney: bold, stylish and contemporary. Guests are welcomed with a  glass of fine Australian wine, a selection of canapés, French pastries, and petit fours. From the elegance of Bennelong’s, with its food created by chefs such as Guillaume Brahimi, to performances by the opera world’s renowned performers, a visit to the Sydney Opera House will satiate the soul of the true culture aficionado.

Harbour Bridge

Celebrate the 75th anniversary of another Sydney landmark this year by taking a walk across the  bridge, which offers stunning views of the Harbour. Exclusive tours allow the intrepid tourist to walk along one of the curves to the top of the bridge, across the peak and back down the opposite curve. For a truly unique experience it is advisable to be at the top of the bridge at twilight, when the city of Sydney starts to light up and a sea of twinkling lights emerge as the golden sun sets in the distant horizon. 

Hot Tips: – The best views of the Sydney Opera House and Harbour bridge are from the Blu Horizon bar located on the 36th floor of the Shangri-la hotel. Cocktails and canapés with the city spread out below as far as the eye can see make for a very memorable diorama.

– For the ultimate Sydney harbour experience charter a private catamaran or super yacht for 20 – 80+ people and enjoy a cruise under the harbour bridge and right alongside the opera house. Add to the experience by including private entertainment from Salsa Latin Floor show to a jazz or blues band.

Watson’s Bay

Located at the southern head of the entrance to Sydney harbour, Watson’s Bay is recognised as Australia’s oldest fishing village. The bay is famous as the landing point of Governor Philip when he first came to Australia, and also for Doyle’s restaurant. Legend has it that on the exact spot where the restaurant is located today was where Doyle sold his daily catch of fish in 1845.

For a long, lazy lunch or a romantic dinner Doyle’s seafood restaurant offers unparalleled service with typical Australian attitude and glorious views of Sydney at its best.

 

Beaches

Immortalised in numerous movies as the epitome of Aussie surf-culture, Bondi is the perfect place to seek anonymity while watching the hordes of surfers ride the majestic waves that crash onto the beach. Trendy restaurants, cafés and ocean-filled pools line the beach-front offering visitors a perfect opportunity to relax and watch the world go by in typical Aussie fashion. After a hard day of surfing or just worshipping the sun, a visit to Icebergs Bar on the corner of Bondi Beach is the perfect spot to experience Bondi’s nightlife. Naturally designed rock pools with crashing waves in the background set the perfect tone for a night of revelry and indulgence.

Manly Beach shoreline is home to some of the very rich and famous with gorgeous beach fronts and smaller intimate coves. Travelling from Manly to Sydney is usually done by yacht or ferry, but a chauffeur drive is also an ideal way to take in the sea views and gorgeous visages of the Sydney Skyline. Manly is also considered Sydney’s premier beach resort with 18 ocean beaches, inlets to swim, sail or surf and a rich heritage and culture.

Getting to Sydney

Emirates

Flies from Dubai – Sydney daily with an approximate flying time 30 hrs.

Flies from Sydney –  Dubai daily with an approximate flying time 30 hrs

First Class Fare: AED 20,090 per adult return  

Thai Airways-

Flies from Dubai – Sydney on Monday, Wednesday, Friday, Sunday – via Bangkok.

Flies from Sydney – Dubai daily via Bangkok.

First Class Fare: AED 18,990 per adult return

Etihad Airlines –

Flies from Abu Dhabi – Sydney daily.

Flies from Sydney – Abu Dhabi daily.

First Class Fare: AED 23,580 per adult return

Beyond the City of Sydney

No trip to Sydney is complete without a visit to the only Australian beach ranked among the world’s top 25 sexiest beaches: Byron Bay. Also on the must do list is a visit to the Blue Mountains with a stay at the Clifftop Lilianfels Blue Mountain Resort & Spa. For the ardent wine collector a tour of Upper and Lower Hunter Valley vineyards is sure to unearth truly rare vintages.

Byron Bay

Out of the 7,000 Australian Beaches, Byron Bay, the New South Wales Beach, was the only one listed among the world’s 25 sexiest by Forbes Traveller. Located on the far north coast of New South Wales, a short hop away from Sydney, Byron Bay was highly rated for its chalky-white sands, temperate weather and frequent visits from dolphins and migrating whales.

Bondi Beach, Sydney. New South Wales

Bondi Beach, Sydney. New South Wales (Photo credit: Australian National Maritime Museum on The Commons)

After research and feedback from industry experts, tour planners, meteorologists and marine biologists, Byron Bay was placed in the exclusive company as Eleuthera in The Bahamas, Lover’s Beach on the Baja Peninsula, and Fiji’s Natadola Beach.

Tour of Hunter Valley Vineyards

Australia is ranked in the top five wine exporters and wine consumers, a true testament to the quality of the wines produced from this part of the world. The Hunter Valley’s unbroken history of winemaking stretches back to 1825, making it home to Australia’s oldest vineyards. Just a 2 hour drive from Sydney, across the Harbour Bridge, is Hunter Valley home to some of the most famous vintages to come out of New South Wales.

The most notable reds from the Lower Hunter valley are long lived Semillion and Shiraz. Most vineyards are situated on red clay soils found at the foothills of the Brokenback range and on the flat creek with sandy soil. Some notable vintages include McWilliams, Mt. Pleasant, Rothbury and Tempus Two.

Upper Hunter region is known as a white wine producer of soft and rich Chardonnays and quick maturing Semillions. Although the climate is warmer the humidity and rainfall is lower. The regions viticultural success is due to the fact that the soil is well drained with moderately fertile black silty loams which overlay alkaline dark clay loam.

The traditional winemaking families are extremely hospitable and offer some expensive vintages exclusive to the New South Wales region. Due to the unique consistency of the soil and climate the wines purchased are rare. It is very difficult to find similar wine anywhere in the world. The Hunter Valley Semillon wines are fresh and limey with a crisp acid backbone and show great potential to mature into classics. The main red variety Shiraz harvested from mid February to early March, depending on vine maturity and crop level, result in wines that are deep in colour, rich in berry fruit with a soft tannin finish.

Factoids: New South Wales/ACT had 432 wine producers in 2007.

Australian wine producers used 118 winegrape varieties to produce straight varietal or blended wines – Shiraz is the most common variety with 80% of producers listing it, followed by Cabernet Sauvignon with 73% and Chardonnay with 71%.

The Blue Mountains

A 90 minute drive west from Sydney or an hour long journey by train, through awe-inspiring scenery, lies the Blue Mountains. The main township Katoomba also known to the aboriginals as ‘shiny, tumbling water’ is home to the Three Sisters rock Formation at Echo point and the luxurious Lilianfels Hotel.

Adjectives such as ‘beautiful’ and ‘mystical’ are often used to describe the characteristic blue haze that envelopes the mountains. The area is also home to the Waratah flowers and other native Australian flora. The best way to drink in the expansive scenery is to ride the famous Scenic Railway, the world’s steepest incline railway, or the thrilling Skyway cable car.

The Lilianfels Blue Mountain Resort & Spa is a European style country house located on a cliff top over the magnificent Jamison Valley. Set amidst two acres of English style gardens, the property overlooks world heritage listed wilderness sites and is a haven for romantic getaways.

An ideal destination for gourmets as well, Lilianfels features the elegant Darleys fine dining restaurant, which boasts modern Australian cuisine. The lasting impression of Lilianfels is the picture perfect image of a fiery sunset reflecting off sandstone cliffs and plunging gorges.

Sydney is undoubtedly one of the world’s greatest cities with sun, surf, and unpretentious soul that is reflective of the easy going Aussie attitude. With a bustling metropolis just minutes away from over 30 beaches you are sure to find your ideal vacation. Due to Sydney being literally on the other side of the world and the stunning naturally occurring facades, rich and possible famous, are choosing Sydney as a vacation destination to get away from the hustle and bustle of work, to relax in anonymity while watching the world go by.

The year 1947, the day 15th August, India gains independence from the British. But, it is a bittersweet occasion, as it also marks a moment of adversity with its current neighbour; Pakistan. Perhaps a harbinger of India’s future as a country rife with contrasts and contradictions. The year 2007, the day 15th August, a relatively sprightly 60-year old, India shows signs of attaining a potential as true as was foreseen by its founding fathers.

On that historic day in 1947, Jawaharlal Nehru, the first Prime Minister of India, raised the Indian Tiranga (Tricolour) flag on the ramparts of Delhi’s historical Red Fort. Watched by millions of newly independent Indians, the moment was heavy with singular thought of the future of a nation reborn. A future envisioned by who all sought to unshackle the enormous potential of the Indian people and the Indian nation.

Standing on the cusp of a glorious opportunity, with a long and rich heritage that stretched back to the Indus Valley civilisation, India was being watched by the world. According to Mark Twain, ‘India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. Our most valuable and most instructive materials in the history of man are treasured up in India only.”

Facts about India –

– India has 18 major languages, 325 languages spoken, with 22,000 dialects.

– A secular nation and home to all the world’s major religions.

– The world’s largest republic for over 60 years.

– The world’s fourth largest economy

– One of the fastest growing IT super powers

– India’s Railways employ the most number of people in the world.

– According to Forbes, India is home to the largest number of billionaires in Asia with 36 Indians on the Forbes ‘100 richest people in the world’ list.

New Beginnings: 1947 – 1990

Post Independence, India was not the economic powerhouse it is today. The country’s literacy rate was just 12.2 percent, while the average per capita growth was approximately 1.5 percent. The average per capita growth, from 1950 to 1980, across the developing world was almost 3 percent. The cautious policies during the tenure of Prime Minister Jawaharlal Nehru and later Prime Minister Indira Gandhi are usually considered the reason for slow economic progress.

As a fledgling economy, and a nation as a whole, India’s economic policies were designed to improve India from the inside-out. Some of the policies implemented during these decades included setting up government run monopolies, regulating private enterprise and discouraging foreign direct investment (FDI). In keeping with the traditions of a pre-independent India, additional policies aimed at empowering the Indian people conversely created a negative impact. Stringent production controls, restrictions on import of foreign technologies and the creation of organised labour unions all considered instrumental in slowing the economy down and lowering overall productivity. 

English: Jawaharlal Nehru, circa 1927

English: Jawaharlal Nehru, circa 1927 (Photo credit: Wikipedia)


It was Nehru who stated, “A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends and when the soul of a nation, long suppressed, finds utterance.” While the visionaries and martyrs of the ‘Quit India movement’ and ‘Swaraj’ (complete independence) profoundly understood political freedom and the need to unleash the potential of the Indian people. They, however, did not quite understand or implement the economic needs of the day.

Cultural Chasm –

– Over 800 million Indians are Hindu, about 80.5% of the country’s population.

– Muslims – 13.4 %.

– Christians – 2.3%.

– Sikhs – 1.9%

– Buddhists – 0.8%

– Jains – 0.4%

– Others (Zoroastrians, Baha’is, etc) – 0.7%

Source: Ministry of Information; AB Research; Indian Census

The Tumultuous Road Thus Far: Post 90’s

Under the leadership of Rajiv Gandhi, one of the country’s most dynamic Prime Ministers, the Indian government began to implement liberal reforms, albeit to a modest degree. A clear indicator of the more liberal policy was the increase in GDP growth to 5.6 percent. However the policies, though well-intentioned, were myopic and resulted in a fiscal crisis in 1990. Perhaps the moment, spoken of by Nehru all those years ago, came in 1991 when the flailing Indian economy triggered critical economic reforms.

In 1991, the finance minister, Manmohan Singh, implemented policies that reduced the government’s stranglehold on foreign trade and Foreign Direct Investments. As a fillip, to increase competition, privatisation of previously publicly owned companies opened the door to adroit entrepreneurs and foreign businesses. While these decisions raised a furore and numerous political debates, the Foreign exchange reserves grew from US$5.8 billion in March 1991 to US$208 billion in June 2007.

The last 17 years have seen India achieve an average of 6 percent year-on-year growth rate. From 2006 to 2007 the Gross Domestic Product (GDP) growth rate touched 9.4 percent, firmly establishing India as the 2nd fastest growing country in the world. With kudos to Manmohan Singh, who is currently Prime Minister, and the IT sector boom in the late 1990s, India has experienced growth of meteoric proportions.

There is no doubt that over the last decade, India has seen a revolution in the Information Technology sector. Lower interest rates coupled with copious amounts of capital has galvanised home grown entrepreneurs.

The new era of privatisation in India has resulted in over a 100 Indian companies achieving a market capitalisation of over US$1 billion. Jet Airways, Infosys technologies, Reliance, Tata Motors, and Wipro have all made the leap from mere domestic companies to internationally renowned brands. Opening the door to FDI has resulted in foreign entities investing in over 1,000 Indian companies listed on the stock market. 125 of the Fortune 500 companies have research and development bases in India.

World Rank

Name

Net Worth (billion)

Company

5

Lakshmi Mittal

US$32.0

Arcelor Mittal

14

Mukesh Ambani

US$20.1

Reliance Industries Ltd

18

Anil Ambani

US$18.2

Anil Dhirubhai Ambani Group

21

Azim Premji

US$17.1

Wipro Technologies

62

Kushal Pal Singh

US$10.0

DLF Group

69

Sunil Mittal and family

US$9.5

Bharti Telecom

86

Kumar Birla

US$8.0

Aditya Birla Group

86

Shashi and Ravi Ruia

US$8.0

Essar

Source: Forbes; AB Research

Even though India is home to some of the world’s richest billionaires; Lakshmi Mittal, Mukesh Ambani, Anil Ambani, Azim Premji and Kush Pal Singh, to name a few, the transition of the country from a land of outdated economics, to a land of fascinating potential is still a hard sell to most foreigners.

A land of contradictions: Prosperity and Poverty

The image most foreign investors have of India are of vast slums, poverty-stricken villages, unkempt roads and a crumbling infrastructure. With good reason, as pollution, corruption, bureaucracy, discrimination, religious violence, child labour is still the order of the day. While the major metropolises are home to 320 million Indians, from actors from the Indian film industry, software engineers and steel magnates, the majority live in rural areas of the country still untouched by technology.

Even though India is a agrarian economy employing 60 percent of India’s labour force, this majority, are the ones living on or below the poverty line. This majority includes 25 percent of Indians earning less than the government specified poverty threshold of US$0.40 a day.

Another not so gratifying statistic is that India is home to 44 percent of the world’s poor and home to the world’s 2nd largest HIV population. Furthermore, at 46 percent, India’s rate of malnutrition, among children under the age of three, is higher than Ethiopia and on par with Eritrea and Burkina Faso. The United Nations Human Development Index, which rates countries by income, health, and literacy, ranks Indian 124th out of 177. Countries that rank ahead of India include the Dominican Republic, Sri Lanka, Syria, and Vietnam.

Although India has been one of the world’s poorest countries, with more than 800 million citizens earning less than US$2 a day, the country has sustained a democratic government for over 60 years. The same government that acknowledged the need to spend US$150 billion over the next five years to develop a world-class infrastructure. The money earmarked includes US$75 billion to revamp the Power sector, US$25 billion for the Telecommunications sector and US$50 billion to upgrade airports, seaports and the road network.

With the often maligned female literacy rate of 54 percent, India is one of the few countries in the world that can boast a female President and a female Prime Minister post-independence. In addition, due to government regulations, village councils must reserve 33 percent of their seats for women; the result: there are more than 1 million elected women in local village councils across the country.

Contrast

– Total GDP of US$ 4,156 trillion ranked 4th in the world while Per Capita GDP US$ 3,737 ranked 118th in the world.

– Total GDP (nominal) US$1 trillion ranked 12th in the world while Per capita GDP US$ 820 ranked 132nd in the world.

Speaking about the government, the booming telecommunications industry and the Indian Institute of Technology, which is considered the world’s best are all still government run. The Indian Railways, which boast the world’s most efficient railway system is government run and officially the world’s largest employer.

The World Wealth Report states that the number of Indian millionaires rose by 20 percent in 2005. In absolute terms, the number of millionaires in India went up from 70,000 to 85,000, a growth rate comparable to any country in the world. For every Indian millionaire, the trickle down effect of this wealth has yet to reach the Rural Indian living below the poverty line.

The land of contradictions continues to amaze. Today, the effect of de-regulation by the government has enabled Indian entrepreneurs to assert their financial clout globally. From Ratan Tata’s US$13.7 billion acquisition of Anglo-Dutch steelmaker Corus Group to Vijay Mallya’s US$1.2 billion investment in Scotch-whiskey maker Whyte & Mackay, Indian businesses are now global conglomerates.

Where is India Headed?

Before the current crop of millionaire businessmen started acquiring foreign companies in various industry segments, India found its niche in the world as an IT superpower. The latter half of the 1990’s saw the government set up Indian Institutes that encouraged Indians to pursue their calling in the IT sector. The rise of well-educated and articulate Indians in addition to a favourable exchange rate spawned a generation of outsource professionals.

While regularly caricatured in movies and comic-strips, the profitability of India’s outsource industry is nothing to laugh at. According to a 2007 report by Credit Suisse, India’s GDP has topped US$1 trillion, making it only the 12th country to achieve this milestone. This economic growth has given rise to a new breed of consumer; young, affluent, a large disposable income and a taste for the good life.

During this era of prosperity, India is helmed by none other than the man who initiated a country-wide economic revival in 1991: Manmohan Singh. It was Sonia Gandhi, leader of the ruling coalition, who chose to abdicate the post of Prime Minister and appoint Manmohan Singh instead. 

India

India (Photo credit: suvajack)


In Manmohan Singh, India did not gain a politician. Instead this chaotic, and often corrupt-labelled Democratic Republic got a man who has unimpeachable integrity, is immensely intelligent, and a qualified economist to boot. With a PhD from Oxford, a track record for running the country’s central bank as well as the Planning and Finance ministry, the breadth and depth of Manmohan Singh’s tenure has helped spur the country toward its economic super power status in recent years.

India on the Fast-Track –

  • India is now the fastest growing wireless market, adding six million mobile-phone users monthly to the 157 million current users.
  • Automobile sales, which reached one million in 2003 after growing 68 percent in five years, will likely touch 20 million by 2030, making it the biggest car market after the US and China, according to the US consultancy Keystone.
  • Indian air carriers, which have 480 aircraft on order to be delivered by 2012, expect domestic traffic to double by 2010 to an annual 60 million passengers.

In the last three years India’s main stock index, the Sensex, has more than tripled. Based on current growth, a study by Goldman Sachs predicts that over the next 50 years, India will be the fastest growing economy in the world. The report states that in 15 years India’s will overtake Britain’s economy, and by 2040 will boast the world’s third largest GDP.

India also has a population that is younger than any other major country with 125 million Indians set to join the workforce in about 10 years. Due to this demographic advantage, Indian professionals will be in high demand, giving rise to a population segment with a significantly higher per capita income and perhaps quicker access to investing in stylish homes, clothes and luxury consumer goods.

All the signs point to an India with a booming economy built on its multifaceted and diverse human resources. A clear indication that the founding fathers knew that the key to economic greatness was unshackling the Indian spirit. To paraphrase an oft used phrase, ‘The future is bright, the future is Saffron.’

As cost cutting has become the order of the day, most airports tend to provide just the basic amenities every traveller expects. Step into most airport business lounges and you will find the ubiquitous reclining chair, average buffet spread and flat screen TVs tuned to generic news channels.

Thankfully, it has become the personal mission of most long haul airlines to eradicate the stereotype of the weary frequent traveller who detests the unavoidable wait at an airport lounge. Taking the onus on themselves, a few select airlines are not just improving airport business lounges but completely redefining the business traveller’s experience. I use the word ‘experience’ because the focus today is on personal comfort, and not just facilities and amenities.

Quick Travel Survey Facts –

– 78 percent of business travellers travelled the same amount or more during 2006

– 79 percent believe that travel benefits their business

– 1 in 5 business travellers travelled more than 500 miles per week

(Source: Barclaycard Business, HRS, ACTE and KDS)

What is the benchmark?

While it is easy to get dazzled by the glitz and glamour of personalised service and fancy food, the question one must ask is: are the essentials covered? What does the businessperson really need, not want, as wants tend to be very personal? There’s that word again; personal.

Location –

Most business travellers tend to use business lounges when they are transiting on their way to their final destination. The lounge is a necessary stop-off but not at the expense of location. Ideally lounges need to be situated near departure gates so that when the last call for the flight is sounded, you still have time to wash down that last canape or hor d’oeurve and amble onto the aircraft. If we are talking 5-star business lounges then perhaps, location, can be ignored for a more effective chauffeur service to the departure gate.

Wireless Internet Access –

With all the large plasma screens and personal televisions showing the latest breaking news, the old fashioned or rather new-fashioned way of keeping up-to-date still holds sway. Logging onto the world wide web and trawling through you favourite news site or blog is still more effective and a much preferred method of news gathering.

So a high speed connection which is accessible via the wireless modem on your laptop is the need of the hour. Very few business travellers go anywhere these days without a laptop. And an additional benefit to tip the scales favourably is a charging port suitable for all models of laptops for the traveller who forgets to pack or loses his charger.

Hot Tip –

Pick up ‘Priority Pass,’ the wold’s largest independent lounge program that offers you access to 500 airport VIP lounges in 275 cities in 90 countries. No matter what class you fly and which airline you travel, use the pass to get away from the chaos and noise and treat yourself to complementary refreshments.

Efficient Customer Service –

A much touted business buzz-word, ‘efficient’, is a very desirable quality in a business lounge. If gourmet food is to be served, let it be served post-haste. It does the business traveller no favour if the food looks great and smells great but when it is time to taste, it is also time to board the flight. Or the dreaded bout of clumsiness that causes a perfectly preserved vintage to stain a perfectly good business suit.

Perhaps a quick and efficient dry cleaner on the premises, in the lounge, for just such an occasion. Better yet a small boutique with off-the wall or bespoke suits for male and female executives, along with other essential apparel would not be amiss. The business traveller might have packed their suits, but they have not packed their wallets.

A few that have got it just right

What the savvy business traveller needs to do is to try and ensure that the unavoidable business trip lands them at one of the airport lounges mentioned below. Expect to find a day spa, tanning booth, personal living spaces, meals prepared by gourmet chefs, secretarial services, and an art gallery. From offering all the essentials, to satisfying a traveller’s wants with amenities that are on par with a 5-star hotel, business lounges that go the extra mile truly deserve a mention.

The Clubhouse by Virgin Atlantic

Virgin Atlantic’s Heathrow Clubhouse is just over a year old and has already made most business travellers’ lists of must visit business lounges. And for very good reason, as the Deli or The Brasserie are designed to tantalise the taste buds of the most jaded business traveller. A state-of-the-art multiscreen, screens films, a variety of programmes and sporting events. The travel weary businessperson has the option of unwinding, if they so choose, with a game of pool or the latest video game on the retro games console. If privacy is the order of the day then the mezzanine hideaway with loungers, day beds and a roof garden ensure a relaxed ambience.

Quick Facts – The clubhouse

– The Cowshed at the Clubhouse is hidden behind a water wall.

– Six steam-rooms and circular hydro spa pool.

– A selection of Cowgroom treatments while you relax in the comfortable Cowgroom chair.

– To pre-book a treatment, e-mail the spa at cowshed.heathrow@fly.virgin.com

What sets the Virgin clubhouse apart from other lounges is the range of spa treatments at Cowshed at the Clubhouse, in addition, to a St. Tropez Tanning Booth. The poolside lounge features a ceiling to floor Japanese water wall that runs gently into an inviting pool. Overall the Virgin Clubhouse is designed to offer the business traveller a complete rejuvenating experience.

The Business Centre by Qatar Airways

Closer to home the Qatar Airways Business Centre at Doha International Airport has taken personalised service to another level. The Business Centre is located in the recently constructed US$90 million Premium Terminal, which extends exclusive access only to first and business class passengers.

As part of the exclusive service the Business Centre provides passengers an e-card that contains biometric personal data from name and passport details to fingerprints. The secretarial services at the Business Centre ensure that all business needs are handled efficiently and professionally. Once business is taken care of, a visit to the spa, jacuzzi or sauna will invigorate you and make the long flight ahead much more inviting.

Gulf Air Business class Lounge

A business traveller by definition is continuously on the move, a veritable dynamo, hopping from city to city attending meetings and presentations. While most lounges focus on helping a jet setter conduct their business more effectively the Gulf Air business class lounge at Bahrain International Airport focuses on the need for a little tranquility.

In addition to a business centre equipped with Apple Mac computers and wireless Internet access the lounge offers a quiet room. With five day beds, an elevated seating area and prayer rooms, harrowed executives have the opportunity to slow down meditate and perhaps be inspired. For frequent flyers Gulf Air proffers a Gold membership with the exclusive benefit of bringing along a travel companion at no extra cost.

Qantas Lounge by Qantas Airways

The Qantas lounge at Sydney Airport is a clear example of the extent business lounges are being redefined. The lounge offers up a stunning 180 degree view of the city of Sydney and Botany Bay, which can be enjoyed while sampling a menu created by celebrated chef Neil Perry. The chair side waiter service allows you to enjoy a meal or drink without having to move to the restaurant.

Transiting passengers in search of an inspiring read can browse the well stocked library or just appreciate the vertical garden designed by Patrick Blanc, the internationally renowned botanist. The deft touches and subtle features of the Qantas lounge are all designed to look and feel similar to a 5-star resort rather than an airport lounge.

Future Perfect –

– Air France will open a new 400 square metre lounge at Tokyo Airport. Designed by Desgrippes-Gobe image agency, the futuristic feel of the lounge will be enhanced with a visual contrast of red and white. The easy-access seats will have a tray table on one arm with a PC socket built into the reading lamp.

– Eos Airlines, the business class carrier, has launched Club 48. More than a lounge Eos describes the gate-side departure lounge at London Stansted Airport as a Club. Upholding the ideal of a stress free, uncrowded travel experience, Club 48 features leather seats, walnut veneers with two 50 inch widescreen TV’s, individual workstations and Wi-Fi access.

Asiana Lounge by Asiana Airlines

Taking a leaf out of Sydney Airports’ business lounge the Asiana Lounge at Incheon Airport gives the business traveller inspiration in the form of art and entertainment. The lounge regularly hosts art exhibits featuring contemporary creations that can be admired or even purchased. Looking to impress the boss? Then nothing says I deserve that promotion more than a spontaneously purchased painting. It might even help you work in more stop overs via Seoul International Airport.

The lounge also features an event hall where regular live performances help reduce the waiting time between flights. Showers, sleeping rooms, full body and foot massage services will refresh both body and mind.

The Wing and The Pier by Cathay Pacific

Not content with offering passengers just one lounge, Cathay has two premium lounges sure to impress even the most wearied traveller. Cathay’s The Wing at Hong Kong International Airport offers two big screen Plasma TVs that keep you updated on events from around the world. The eight shower rooms stocked with towels and other toiletries as well as 34 unique ‘personal living spaces’ are designed for privacy. The shower rooms will help you freshen up while the personal living spaces will provide you the sanctuary to tackle any pending work especially that pesky presentation that is due by the time you arrive at your destination.

If you do not fancy airline food then the Noodle Bar and Long Bar is the perfect place to dine on some delectable 5-star cuisine. The second premium lounge, called The Pier, delivers all the amenities and facilities as The Wing with the added advantage of more room for the business travellers to relax.

Dynasty Lounge by China Airlines

The Dynasty Lounge at Chiang Kai Shek Airport supplies just the right combination of services and amenities to help the business traveller de-stress. With a view to simplicity the lounge gives the weary traveller the opportunity to refresh and relax. A shower room to wash off the travel dust and an hor d’oeuvre service for a quick bite to eat or a self-serve buffet for something more substantial. A wide variety of reading materials helps engage the mind while televisions help occupy the mind and make the waiting time a bit more bearable.

Swiss Lounge by Swiss Air

For most business travellers a common and effective way to relax is a soothing glass of wine or a cold beer while waiting in an airport lounge. The Swiss lounge ensures that if a traveller prefers this oft used formula to get through innumerable transits then they should have ample access at the airport world’s longest bar. Measuring approximately 93 feet the bar is the perfect place to slowly drink in the hustle and bustle of Zurich airport while enjoying a cold beverage or two.

In keeping with most other business lounges the Swiss lounge offers computer workstations for the traveller who prefers to optimise their waiting time by working. Showers are also available to freshen up after a long flight.

Red Carpet Club by United Airlines

The United Red Carpet Club at The Los Angeles Airport features a comfortable lounge with personalised travel assistance and an array of complimentary menu for breakfast and lunch. High Speed WiFi wireless Internet service is also available at many U.S. Locations with fax services for a nominal fee and complimentary photocopy services. LAX has 3 conference rooms that can comfortably seat 6 people and offers useful business amenities such as free local calls, speakerphones and whiteboards.

The United Red Carpet Club is centrally located at over 40 airports in the United States and across the world. Business Travellers can avail Reciprocal Club Privileges when they travel on Star Alliance and US Airways Club.

Top Ten Business lounges in the World

  1. Virgin Atlantic, London Heathrow Airport
  2. Cathay Pacific, Hong Kong International Airport
  3. Qatar Airways, Doha International Airport
  4. Qantas Airways, Sydney Airport
  5. Gulf Air, Bahrain International Airport
  6. Malaysia Airlines, Kuala Lumpur International Airport
  7. China Airlines, Taiwan Taoyuan International Airport
  8. Swiss Air, Zurich Airport
  9. Asiana Airlines, Seoul Incheon International Airport
  10. Air New Zealand, Auckland International Airport

Source: Skytrax.

With the variety of amenities offered at business lounges, most business travellers prefer to dine, rest and take care of business before stepping onto their flight. The time spent in the air is now being used to catch up on sleep or perhaps finally getting around to reading that best seller on how to make a million on your way to the next meeting.


Introduction:

Statistics released by the International Finance Corporation and World Bank Group in January 2007, show that on an average 80 per cent of the total regional business and employment market is made up of SMEs, and this figure is as high as 86 per cent for the UAE.

Small and medium enterprises (SME’s), from a 2 person operation to a 50 strong business, are duly considered the backbone of a country’s economy. In the Middle East alone SME’s make up a sizeable portion of all the businesses incorporated on an almost daily basis. Yet across the board most financial institutions and banks have only recently created specific banking products targeted to the SME sector.

Most entrepreneurs face a catch-22 situation of having to be credit worth to get funding from financial institutions, on the flip side SME’s have to be in business for 1 year or upward to be credit worthy. Even if financing is available, the products available are ‘collateral based lending’ usually offered by traditional banks and finance companies, made up of a combination of Asset-based finance, Contribution based finance, Financial statement lending, Credit scoring and Relationship lending.

Fully secured lending is still the most prevalent form of financing available for SMEs. Most banks still believe that SME financing is riskier than financing medium to large corporate
businesses. The main reason behind this thinking is the higher rate of defaults amongst SME. For this very reason, banks are more inclined to fund SME’s with a track record of at least three years. Traditionally and it has been proved that if a start up can survive it’s first three years then chances of that business being a success increases tremendously.

In some instances Viability based finance is offered in the form of venture capital, but again the business has to project sizeable returns over a relatively short span for 3 years to 5 years. But it is not all doom and gloom for entrepreneurs as this phenomenon is common in most emerging economies.

Bridging the SME Finance Gap:

As stated earlier most SMEs find themselves in the proverbial ‘chicken and egg’ situation most SME’s do not have sufficient collateral required for collateral based lending, and cannot show high returns to justify the risks taken by venture capitalists. In addition, the Middle East markets have little or unreliable information, limiting the effectiveness of financial statement lending and credit scoring.

However, there have been significant changes in the attitudes of banks towards entrepreneurs and SME’s in the Middle East and the UAE in particular. At present there are few avenues of borrowings, on an unsecured basis,
available to SME. Most of the financial institutions offer fully secured. However, some banks have started lending on an unsecured basis. Such type of lending, lower loan values and, may not be suitable for medium size companies.

There are facilities available for loans against collateral and some loans on an unsecured basis. Banks also see this segment as a potential for cross sell opportunities. There are ample opportunities available to sell personal Wealth Management and other related products to the business-owners from this segment.

Additionally, financial institutions are broadening the viability based approach. This approach focuses on the type of business and offers more than just monetary support. With the added emphasis on business development there is a clear reduction in risk and the opportunity for the financial institutions to benefit from the increase in returns.

Lloyds Small Business Award (SBA):

Every year Lloyds TSB organises the Lloyds SBA an event that honours SME in different categories from innovation to Entrepreneurial Start-up Award. The main prize for the Lloyds TSB Small Business of the year Award is US$ 13,614.33 directly credited to the winners account. Reinforcing Lloyds commitment to helping SMEs in this region.

It must be stated that the rate of return or value of returns will not be attractive to venture capitalists (VC), this mode of financing is better than collateral based lending. However, this mode of financing does reduce the risk profile of the business and that is always attractive to Venture Capitalists.

Financial Options Available:

In any economy SMEs play an important role in providing the necessary impetus for overall growth. SMEs act as the lubrication for well run machinery in expanding economies. They provide the continuous churn required to enhance and grow any economy. The economic expansion of the UAE has also led the banks to offer efficient, cost effective and comprehensive solutions for SME financing.

Every bank has its own lending criteria. However, at the minimum level every bank looks for three years of audited accounts from the SME. Based on the products available with a particular bank, additional requirements, like gearing ratios, profitability, management stature etc, are then taken into consideration.

List of banks offering SME Banking Products:

  1. Abu Dhabi Commercial Bank (ADCB)

Abu Dhabi Commercial Bank is one of the UAE’s most successful local banks. ADCB’s SME package offers Financing, Trade Services, Cash Management and Treasury & Investments tailored to meet your requirements. For more information please visit:

http://www.adcb.com

  1. ABN Amro

ABN Amro is an international bank with a global network of more than 600 offices in 50 countries. ABN Amro offers a range of products and services for SME customers, local entrepreneurs and multinational corporate . For more information please visit: http://www.abnamro.com/

  1. HSBC

HSBC is one of the largest banking and financial services organisations in the world. In the UAE, the HSBC group is represented by HSBC Bank Middle East Limited (HBME). HSBC offers a unique ‘SME banking with protection, competitive rates and many more benefits. For more information please visit: http://www.hsbc.ae

  1. Lloyds TSB

Lloyds TSB is a branch of the UK based Lloyds TSB Group, the UAE branch has been operational since 1977 and offers personal, private, business, corporate and offshore banking services. Lloyds has a comprehensive SME portfolio and offers a dedicated relationship manager and many other facilities: Please visit the website: http://www.lloydstsb.ae

  1. Mashreq bank

Mashreqbank psc. is the second oldest Commercial Bank in the UAE having originally been established as Bank of Oman Ltd. In 1967 in Dubai. Mashreqbank     offers convenient SME banking with trade and working capital and merchant overdraft in addition to competitive rates Please visit: http://www.mashreqbank.com

  1. RAKBANK

RAKBANK is the trading name of the National Bank of Ras-Al-Khaimah, a public joint stock company headquartered in the emirate of Ras Al-Khaimah. The bank offers low interest rates, flexible repayment periods, minimum formalities and high loan amounts for SMEs. For more information please visit:http://www.rakbank.ae/

For SMEs that meet the criteria set out by the banks and financial institution there are a range of banking products and services on offer. Based on numerous factors the principal of which is time; banks are providing products and services that help SMEs become more efficient and effective.

To help SME’s manage their business cash flow better, some banking products and financial services offered are; Current Accounts, Fixed Deposit, International Trade Account, FX & Treasury and Cash Management Facilities. Additional products that help keep costs low and generate significant savings are free electronic funds transfer (EFT), free cheque collections, free demand drafts and free inter-branch banking.

SMEs can also benefit from some of the add-ons offered with these products including sweep in facility linked to fixed deposits, local cheque book, personalised payable at par cheque book, monthly statements by courier and e-mail, phone banking, third party transfers through Internet banking – usually at no additional cost.

An entrepreneur or business owner needs to realise and ensure that the services and products offered by a bank or financial institution help in meeting every challenge from day to day administrative details to business expansion. In addition, these packages should help a SME save on huge transaction and transfer fees on their bank accounts.

Advisor Checklist:

A bank or financial institution should be treated as a partner whose aim is to help you; the entrepreneur or small business owner, make the most of your time, money and resources so as to maximize returns. With more than 52 banks in the UAE alone, and more cropping up every month, choosing a bank, that fits your unique can be a daunting task. With most banks offering similar services, its hard to choose the right one. However, here are few things to watch out for:

1.) Location

Close is not necessarily better. Consider whether or not you are willing to pay higher fees for better location, or if lower fees may be worth a little travel. Besides the location, check with the ATM locations. Other factors such as opening hours; telephone and online banking facilities; interest rates and savings options; borrowing facilities; merchant services and introductory offers also should play an important factor while deciding on your bank.

2.) Global or local

MNC banks are great with a wider range of services, but then as an SMB you could be one more company, amongst millions of customers. If your business is largely restricted to the UAE, then do consider a local bank.

3.) Minimum Account Balances

Many banks require balances of in order to get free checking or savings accounts. Consider the amount of interest you might earn on that same amount if placed in a savings account or a CD. also compare the monthly general maintenance fees charged by banks on checking and savings accounts. If you routinely keep enough money in your checking account to meet the minimum balance, gaining interest on that money is a bonus.

However, if you don’t to meet the minimum balance requirements, an interest bearing checking account usually will have a higher monthly fee than a one that does not earn interest. Many banks are now charging high fees for copies of canceled checks,account research and copies of bank statements.

Overdraft protection is a service that can be very helpful to avoid returned check fees. Be sure to carefully review the terms of the agreement before you sign. Some banks are actually offering short term loans as overdraft protection, which requires a credit check and they charge you interest on the money loaned to you by the bank to cover what would otherwise be a bounced check and they might still charge you a fee for the service.

4.) Fine Print

Read the fine print about how the bank calculates fees if you fall beneath this minimum balance. One way is to charge a fee if the average daily balance over one month is lower than the minimum another does it immediately upon the balance falling.

Charges Per Transaction –

Along with the monthly fees that many banks charge, some also charge fees per transaction, such as writing a check, moving money from one account to the other, checking balances at your an ATM, or withdrawing money through an ATM. These fees and really add up. Be sure to ask for and thoroughly review a list of all fees charged by the bank.

5.) Electronic Banking (Internet/phone/mobile)

A fast growing area of most banks is online banking services through which all banking transactions can be done from a your pc with Internet access. Ask if the bank charges a monthly access fee for these services. If you to use online banking services to pay your bills, the bank may charge a monthly fee for this service, although more banks are now offering this for free.

6.) Ask for customer references and a relationship manager

Most banks will ensure that your account is dealt with a dedicated relationship manager. Ensure that you keep lines of communication with you relationship manager open and continuously follow-up and maintain a relationship – it is a two-way street. If you call up only when you ned something it might not be as effective as having an on-going relationship.

7.) Test run

Sit with your accountant to run through 12 months of possible transactions, to help you stimulate your typical month of banking transactions. This will help you plan accordingly.

8.) Weigh alternatives such as Islamic Banking

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits usury, the collection and payment of interest, also commonly called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values).

Other Cash options:

A new model of finance is Bartercard (www.bartercard.com), a unique service network that is not funded on a cash basis but by goods and services exchanged or bartered with other Bartercard members. Unlike traditional credit, debit cards or cheques, a Bartercard transaction requires member businesses to exchange goods and services with each other for ‘Trade Dollars’.

These Trade Dollars are credited to the member’s Bartercard account when goods or services are exchanged. Members can then utilize their Bartercard Trade Dollars to purchase goods and services from any other Bartercard member. Members save valuable cash flow and boost their profitability by taking advantage of the Bartercard network.

Bartercard is committed to helping SMEs grow and achieve financial success by facilitating a trade exchange network that offers dynamic and effective ways of conducting business. Although the concept of barter is thousands of years old, bartering through Bartercard is the most innovative way of combining modern technology, a community of businesses, and indirect and direct marketing channels to improve customer base, sales, profit and cash flow.

Going forward:

The SME market is growing exponentially. New businesses are opening everyday. Banks are also realizing the importance and growth potential of this market segment. Therefore, you will see a lot more focus from the Banks to develop their own products and services aimed at this segment.

Overcoming the biggest hurdle, that of, offering unsecured credit facilities to the SME sector due to lack of financial information available. In the absence of the corporate credit bureau,
banks cannot make an informed decision about the financial health of a company. So financial institutions are adopting a program lending approach towards structuring credit facilities for SMEs.

Banks are already making headway with products and services focused in this segment with a number of new products slated for launch over the year. SME’s who are established for over three to five years would make a substantial base for banks to offer credit facilities. Product offering based on a lending module where companies fitting the parameters would automatically qualify for some unsecured credit facilities could be a reality for some SME.

Introduction:

As small and medium-sized businesses (SMBs) save more data and rely on it more, they are turning to networked storage even under the burden of limited budgets and IT expertise. Data Storage is related to information. Across verticals there is a continuous increase in the amount of relevant business information that needs to be processed and stored. Some of the data needs to be stored for daily retrieval or as long-term records. Data storage provides one of the core functions of any SME, that of information retention and retrieval.

According to industry estimates, the SMB storage market is pegged around US$5 billion worldwide and estimates the growth at close to 13%, with the commercial segment at 11% and the large enterprise and corporate sectors growing at only around 5%. Of this storage pie, the Middle East SMB storage market is as high as 75% to 80% and is expected to expand over the next three-to-five years.

A quick look at certain sectors show that the following have accelerated growth levels and are poised to continue over the next few years:

  • Content Depots, like Flickr, YouTube and Google will consume 25 times as much storage space by 2010 as they do now,
  • Media/ TV: 1000% growth a year due to digitising of the archive and archiving of current and coming content,
  • Banking: Requirements to keep track of financial transactions and records, as well as compliance (Basel II, MiFID, etc.),

Kevin Vine, EMEA Director, said, “In the Middle East, like the rest of EMEA, the market for personal data storage has grown enormously and this need is pushing for larger and capacities and faster data transfer rates.”

Independent analyst group, IDC, has said that the Middle East is on the verge of a data boom, and most regional organizations are not prepared. Software investment in the Middle East remains strong, but only leads to the generation of more data which, in turn, must be backed-up and retrieved for immediate reference in the region’s fast moving organisations. Oil and gas conglomerates, retail, banks, governments, and telcos are all investing significantly in software applications to manage their growing customer base.

Fiona Moon, CommVault Marketing Director stated: “Data growth in the Middle East is progressing faster than most emerging markets, and we believe that this trend will continue. IDC’s view that the region is on the verge of a data boom fully supports our existing position that regional organisations should be moving now to establish a clearly defined storage investment policy the places crucial importance on leading-edge back-up and recovery technologies.”

Across the board, there is still a vast amount of untapped storage to be digitised in the shape of paper records and forms. Data storage technologies and companies is this space need to address the entire life cycle from document capture to archiving.

What is Data Storage?

In layman’s terms, ‘Data Storage’ refers to information recorded onto a form of semiconductor for retrieval immediately such as a random access memory (RAM) and sometimes other forms of fast but temporary storage. Additionally, storage today more commonly refers to mass storage for retrieval after a length of time. The mode of storage utilises optical discs, forms of magnetic storage such as hard disks, and other types slower than RAM, but of a more permanent nature. 

Data storage - old and new

Data storage – old and new (Photo credit: Ian-S)


It necessary to understand the actual definitions of storage and how it relates to memory. The fundamental architecture of Personal Computers featured a hard drive for storage of data and RAM for instant retrieval of applications. However, with the creation of numerous mass storage devices such as Flash Memory, CD’s, and ZIP drives – to name a few – the technical difference between memory and mass storage devices, has been blurred.

Why Store Information?

In a study commissioned by CA, the independent London-based consultancy Gyro International found that demand for new approaches to data protection is growing.<0}
{0>91 Prozent der Befragten gaben an, dass es vorteilhaft wäre, Daten kontinuierlich zu sichern.<}100{>91% of those surveyed said that saving data continuously would be advantageous.<0}
{0>80 Prozent aller Befragten sind mit dem Konzept und der Thematik der Continuous Data Protection (CDP) vertraut. Aber nur 50 Prozent kennen die Vorteile, die CDP für Unternehmen bringt.<}100{>80% of participants are familiar with the concept and topic of continuous data protection (CDP), but only 50% are aware of the benefits CDP brings to a business.<0}
{0>40 Prozent nutzen CDP bereits oder planen, CDP innerhalb des nächsten Jahres einzuführen.<}100{>And finally, 40% currently use CDP or plan to implement it within the next year.

The maturity of a storage market and the assets linked to information, data storage or data protection has a much higher focus. Archiving becomes a necessity due to international regulations and corporate survival alike. The lack of legacy systems allows for SME’s to adopt the newest trends and technologies.

According to Mr. Stephan Wolfs, SWD Business Development Manager, HP Middle East,

“Data protection has become key and HP’s storage portfolio offers solutions for SME’s to implement data protection techniques without the need for unrealistic investments: eg. HP DataProtector backup software is significantly less expensive. Other solutions such as Disk-to-Disk (D2D) and Virtual Library Systems (VLS), receive very good response from the market hinting towards a trend of online archiving.”

Since Middle East customers are facing challenges in harnessing the growth of their Server and Storage infrastructure, they are looking for answers from the vendors to reduce the complexity, increase the utilisation of previous investments and provide tools to predict further acquisition needs. Archiving solutions such as File Archiving Software (FAS) are easy to implement and the Enterprise Integrated Archiving Platform (IAP) is installed in minutes rather than in days. Replication has always been on the forefront, both as a means for data protection as well as Disaster recovery.

“We see increased interest in replication from a DR point of view or to relay SME branch offices with corporate headquarters,” adds Mr. Wolfs. “The Midrange EVA offers array-based replication and tight, integrated failover facilities with the Operating System. True 3-site replication is also available in the HP Storage portfolio. As a leader in servers and storage, HP is uniquely positioned to offer application to storage management.”

One weakness of traditional backups: because data is normally only saved daily (or even weekly) through nightly backups, the reconstructed data is only as current as the most recent tape. In the worst-case scenario for daily backups, all data from the past 24 hours could be lost.<0}

Aaa{0>Deshalb werden mit CDP im Gegensatz zu traditionellen Backup-Verfahren alle Datenänderungen kontinuierlich gesichert. CDP schützt somit rund um die Uhr vor Datenverlust.<}64{>According to Mr. AAccAACDP, in contrast to traditional backup processes, continuously saves all changes to data, thus protecting users around the clock from data loss,” says Mr. Hussam Qasem, Senior Technical Sales consultant at CA. “With CDP, IT managers can “rewind” the saved data to any point in time (rewind technology) and quickly reconstruct the status of that data set.<0}
{0>CA bietet diesen integrierten kontinuierlichen Datenschutz als erster Hersteller in seiner CA Recovery Management Lösung an.<}100{>CA is the first company to offer this integrated continuous data protection with its CA Recovery Management Solution.”

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Types of Storage:

Historically, memory and storage were respectively called primary storage and secondary storage. Broadly defined; Primary Storage is the main memory and is directly accessible from the Central Processing Unit (CPU) while Secondary memory is not directly accessible by the CPU. In addition , there is also Tertiary storage such as a large tape library and off-line storage, which is not connected to a CPU.

Primary Storage or main memory –

Primary storage, presently known as memory, allows the CPU to continuously read information stored in memory. Data actively operated on is stored in the random access memory (RAM). Usually this type of memory falls under the volatile memory category as the information is lost when not powered).

The Advisor Recommends-

By following these quick tips, SMEs can prepare for, select, and apply the best new storage technologies for their needs.

• Take Stock – What are you current storage capacities and capabilities.

• Predictions – Using the current level of capacity estimate your storage needs for the coming year and then 3 – 5 years. Start with the end first, when it comes to storage. Plan ahead for about three years, before you make the necessary hardware purchases.

• Plan of Action – After defining the positives and negatives. Address the critical requirements first and then address the next item on the list.

• Managing the new system – SMEs should look closely at the management systems that come with storage technologies – ideally look for systems that come bundled with advanced UIs (user interfaces) that make it easy to move and manage data.

• Data recovery – Companies often fail to appreciate a sound data backup strategy until their data goes missing. The potential costs of media failure far exceed the financial outlay for a RAID configuration or for offline backup. Here are four strategies for achieving adequate storage capacity and the redundancy needed to keep your data safe.

Secondary Storage –

Any information stored in secondary storage needs to be accessed via input/output channels such as USB slots or floppy disk/Compact Disk drives. Secondary storage is not volatile as it does not lose the data when the device is powered down. The storage capacity of secondary storage is usually much higher than primary storage and data is stored for a longer time. Some examples of secondary storage technologies are: Floppy disk, used for off-line storage, Hard disk, used for secondary storage , Magnetic tape data storage, used for tertiary and off-line storage.

Tertiary storage –

Tertiary storage or tertiary memory is the third level of storage. It is used for archival of rarely accessed information due to the slow information access speeds which are much slower than secondary storage. Tertiary storage is primarily useful for extremely large data, that has to be accessed without human operators. Typical examples include tape libraries and optical jukeboxes.

Factoid – The Alphabet soup:
  1. Read-only storage, used for mass distribution of digital information (music, video, computer programs) include CD, CD-ROM, DVD, Blu-ray Disc, HD DVD
  2. Write once storage, used for tertiary and off-line storage include CD-R, DVD-R, DVD+R
  3. Slow write, fast read storage, used for tertiary and off-line storage include CD-RW, DVD-RW, DVD+RW, DVD-RAM

Off-line storage –

Off-line storage, also known as disconnected storage, is a data stored on a medium or a device that is not under the control of a CPU. The medium is recorded, usually in a secondary or tertiary storage device, and then physically removed or disconnected. It must be inserted or connected by a human operator before a computer can access it again. Off-line storage is used to transfer information, since the detached medium can be easily physically transported. Additionally in case a disaster, for example a fire, destroys the original data, a medium in a remote location will be probably unaffected, enabling disaster recovery.

Most SME’s choose to use secondary and tertiary storage media such as optical discs and flash memory devices, and to much lesser external removable hard disk drives. In enterprise uses, magnetic tape is predominant. Older examples are floppy disks, Zip disks, or punched cards.

Key Elements of Storage:

Backup—and not to mention recovery—is usually a laborious process. To prevent data from being lost, it is usually saved regularly on magnetic tape, which can then be used to reconstruct the data from a backup point in time as needed.

Small and Medium Enterprises (SME’s) are the largest consumers of large inexpensive disks. With mechanical drives now breaking the 1 terrabyte (TB) barrier at prices less than US$0.25 per Gigabyte (GB), many SME’s are utilising large disks in NAS appliances or home-grown file servers.

“However, since Information Governance is non-existent, we don’t see strong Information Lifecycle Management,” adds Mr. Qasem. “Most SME’s don’t backup their data, and when they do, they tend to use optical discs (CDs/DVDs). Of those who backup, most would perform a full-level backup – as they’ve never heard of incremental backup.”

The SME community requires the same levels of data storage and data availability as the Enterprise segment. This evolution is translated in an increase of Enterprise Storage features becoming available for Entry Level and Midrange storage solutions. In order to benefit from these solutions the customer data storage has to be networked, centrally managed, routed and protected. However SME customers don’t want to increase the complexity of their storage systems in order to implement these solutions

Ability to access information –

The information, once stored, should be, easily accessible to a single PC or across a network. As most data needs to updated regularly it is necessary to have quick and easy access to the storage device.

Ability to change information –

Read/write storage is critical so that information can be overwritten at any time. A computer without some amount of read/write storage for primary storage purposes would be useless for many tasks. Modern computers typically use read/write storage also for secondary storage. Although some information can be stored once, sometimes called immutable storage, for tertiary and off-line storage.

Capacity and performance –

Storage capacity is the total amount of stored information that a storage device or medium can hold. It is expressed as a quantity of bits, mega bytes (MB) or Gigabytes (GB). Currently most secondary storage offer in excess of 1 – 500 gigabytes. The storage capacity requirements should be based on requirements and nature of data to be stored.

The performance is the rate at which the information is transferred from the CPU to the storage device. The general rule of thumb is that the faster the rate of transfer the better the device.

Current Method of Storage:

Mechanical hard drives are the most popular, by far. Followed by USB flash drives, flash memory cards, CDs and DVDs. However, many enterprises store backup and historical data into magnetic tapes. Currently there are 6 commonly used storage methods:

Direct Attached Storage (DAS) –

Direct-attached drives–the most common type of add-on storage–come in a single- or multiple-drive enclosure that typically hooks up to your PC via a USB 2.0, FireWire, or eSATA connection (eSATA is the latest and fastest of these types, but you’re likely to need an adapter to connect it to your computer). If you just want the storage drive to back up the internal disk inside the PC it’s attached to, a single drive works fine. A 500GB costs as low as US$175 to a 2 TB drive costing around US$2,000.

Portable Storage

Portable USB hard disks and flash drives are great for travel, for moving large files around the office, and for laptop backup. They can be a serious security risk if lost or stolen, however, so it’s imperative to use encryption software on any drive that might leave the office. The Lexar JumpDrive Lightning and the SanDisk Cruzer series are popular flash drives with strong encryption software. Add-on software like Migo’s Digital Vault ($30) will secure any USB hard disk or flash drive.

Examples of portable drives that you can power through your USB port include Maxtor’s OneTouch III Mini, Toshiba’s Portable External Drive, and Western Digital’s Passport. Prices are typically $100 to $200 for 100GB to 250GB drives. Note, however, that the disks in these compact cases tend to be 5400-rpm laptop drives, which are considerably slower than the 7200-rpm drives used in desktop PCs.

Hot Tip: Online Storage –

SMEs can give employees easy access to shared files from anywhere in the world, by using online storage services. The downside is that they are slower to use than local disks, which makes them a poor choice for storing huge files.

– Yahoo has introduced a new monthly Web hosting service for small and medium sized enterprises (SMEs), priced at US$11.95 a month which provides unlimited hosted storage capacity and bandwidth.

– ElephantDrive.com offers an economical service for businesses (1TB of storage for $350 a year), including selective or automatic backups, encryption, file sharing, Web browser access, and multiple user accounts.

– Carbonite.com’s is ideal for individual computers, offering automatic, continuous backup service costs $50 per year, with unlimited storage.

– Amazon’s S3 Storage offers similar pricing options.

Network Attached Storage (NAS) –

For most small businesses, a NAS drive is the best option for central file storage and backup. NAS drives also provide Web and FTP access to your files, and act as print servers. After initial setup, NAS drives require little administration (a boon for small businesses without IT staffs), and they can be secured with encryption and passwords. For top performance, choose models with gigabit ethernet connections, and make sure you have gigabit routers and switches in your office. Backups can be bandwidth intensive.

Two excellent NAS products designed for small businesses are the Iomega StorCenter Pro 150d ($800 for 1TB, $1100 for 2TB, or $1700 for 3TB) and the Netgear ReadyNAS NV+. Both of these devices are hot-swappable, and they offer RAID 1 and 5 support, gigabit ethernet, Web-based administration, and software for backing up local drives.

Storage Array Network (SAN) –

SAN’s have become common place in the SME segment due to need for more performance and data protection. These are designed for the SME customer and offer peace of mind in term of capacity growth (up to 120TB), and performance.

Disk to Disk Backup (D2D) and Virtual Library Systems (VLS) –

Thanks to the increased affordability and capacity of Disk systems, SME customers are more than willing to backup and safeguard their data on dedicated disk backup systems. Reduced backup windows and the need for quick restores are the main drivers to adopt a D2D policy. While the VLS solution is geared towards 2-stage backup. First to disk and then de-staged to tape, if required.

TAPE –

Tapes that are not accessed don’t use energy, they have an incredible low $/GB cost and can be vaulted in a secure area. For all the new technologies in the market, tape is here to stay. According to Mr. Wolfs, “HP is the uncontested tape leader. This prompts us to further develop this technology. The latest LTO-4 tape technology has more capacity and performance, has embedded 256-bit encryption and is…Green”

Robotic storage –

Robotic storage is used for backups, and for high-capacity archives in imaging, medical, and video industries. Tape libraries may have from 10 to more than 100,000 slots, and provide terabytes or petabytes of near-line information. Optical jukeboxes are somewhat smaller solutions, up to 1,000 slots. Large quantities of individual magnetic tapes, and optical or magneto-optical discs may be stored in robotic tertiary storage devices.

The Future of Storage:

Whatever the future of Storage Media, they will have to meet several requirements. First and foremost these media will have to store more information in a smaller form factor. The ease of use of Flash Drives has greatly contributed to its success, as it is used in all kinds of devices alike. We believe that future data storage media solutions need to offer built-in security, be dependable and become widely accepted as a de-facto standard. However, the example of the Floppy Disk sheds some light on a major concern: Backwards compatibility.

Leading Storage companies:

EMC Corporation – EMC solutions and services help organisations of all sizes design, build, and manage intelligent, flexible, and secure information infrastructures.

Quantum Corp. – the leading global storage company specializing in backup, recovery and archive.

QLogic – is a leading supplier of high performance storage networking solutions, which include the controller chips, host adapters (HBAs), and fabric switches that are the backbone for most global corporations.

Finisar Corporation – enable high-speed communications for networking and storage applications over Gigabit Ethernet Local Area Networks (LANs), Fibre Channel Storage Area Networks (SANs), and Metropolitan Area Networks (MANs) using both IP and SONET/SDH-based protocols.

Fibrenetix Storage Ltd – is recognized for cutting-edge technology and has successfully developed a comprehensive range of enterprise-class RAID and NAS systems that combine quality, reliability, and the best price/performance ratio in the storage industry.

 

Specific to the Middle East customers are very well informed about the need for data storage and protection. Major Storage Industry Associations such as SNIA, hold their yearly conferences in the region. This is a welcome situation, as the market is very quick in adopting new solutions.

As the market for better and more cost effective data storage devices grows, manufacturers of external storage devices will keep developing products that meet the demand of the market. Most external storage manufacturers such as HP work closely with their partners to deliver storage and server solutions to accelerate their business growth while minimizing costs and risks.

Solid State Disks (SSD) are the drives of the future. They host no moving parts, thus eliminating seek time, latency and other elctro-mechanical delays. They offer numerous advantages from faster access, more durability, low power consumption and less heat dissipation. SSD prices are relatively high, but are expected to drop in a year or two, which is all good news for SME’s looking to retain and access valuable data.