Category: Business

  • Emirates NBD eyes Turkey for opportunities

    Emirates NBD eyes Turkey for opportunities

    Gregor Hunter

    Dec 6, 2011

    financeEmirates NBD is planning an overhaul of its customer service practices as it attempts to drive up the size of its consumer banking business.

    The biggest bank in the UAE by assets, Emirates NBD is aiming to generate 50 per cent of group revenues from its retail banking operations, said Rick Pudner, the bank’s chief executive.

    “We’re going to go back to basics and tweak our efficiencies,” he said. “The key priority is making the bank hum. It’s working well, but we need to fine-tune and make it more efficient.”

    The bank’s international expansion would focus on organic growth, particularly in Saudi Arabia and India, though Mr Pudner signalled that the bank was seeking takeover targets in the Middle East as European banks look to sell assets in the region.

    “Turkey is important to us, and we continue to search the region for what we think would be a good fit,” he said.

    The bank is also preparing for its first sukuk launch, which Mr Pudner said was due in December.

    Mr Pudner was speaking on the sidelines of a conference to announce a tie-up between IBM and Tanfeeth, the bank’s newly launched “shared services” subsidiary, which will seek efficiencies and cost savings across the entirety of the bank’s operations. IBM will provide services and training as Tanfeeth establishes itself in the region.

    “Banks come under pressure sometimes in terms of quality of service,” Mr Pudner said. “This is a real key initiative for me as a banker to make sure my customer service improves significantly over the next few years. We’re going to invest what we need to invest to make this work.”

    Emirates NBD has invested more than Dh100m in Tanfeeth, the first company of its kind in the Middle East.

    Consumer lending accounted for Dh2.8bn of the bank’s operating income in the third quarter, 38.4 per cent of the bank’s total. However, this business is the most costly division in terms of general and administrative expenses of any of Emirates NBD’s business.

    ghunter@thenational.ae

    via Emirates NBD eyes Turkey for opportunities – The National.

  • Biden: Turkey has a serious potential in talent and entrepreneurship

    Biden: Turkey has a serious potential in talent and entrepreneurship

    Balkan Business News Correspondent – 06.12.2011

    Zaman – Turkey’s much touted entrepreneurial spirit, combined with the benefits of a high performing economy, is set to place the country among the world’s top economies by 2023. “The next Steve Jobs may well be a Turk,” according to US Vice President Joe Biden.

    On a visit to Turkey, the US Vice President addressed a group of businesspeople at the second Global Entrepreneurship Summit in Istanbul, praising Turkey’s economic achievements in the last decade, such as tripling the size of the economy, record breaking exports, and increasing per capita income.

    Biden referred to Apple’s founder Steve Jobs, giving a striking example of Turkey’s innovation potential: “I was not surprised to hear our Ambassador to Ankara saying that the next Steve Jobs may be from Turkey. He might even be among us here. Turkey has a serious potential in talent and entrepreneurship,” Biden told the audience at the forum’s opening speech. Turkey is one of the key economies of the world, and is in the position to realize its potential, Biden added, speaking of Turkey’s goal to enter the top 10 economies of the world by 2023, the centennial of the Republic.

    The US Vice President stressed the importance of supporting innovative ideas in order to flourish, noting the success of companies like Apple and Google. Source: IIT

    via Balkans.com Business News : Biden: Turkey has a serious potential in talent and entrepreneurship.

  • A Baklava Republic: Greece Regressing From EU Into Recklessness of Turkey and Beyond

    A Baklava Republic: Greece Regressing From EU Into Recklessness of Turkey and Beyond

    headshotVanessa Andris

    Leadership and Organization Effectiveness Consultant; Executive Coach, World Bank Group

    It is not at all unreasonable that any intelligent person trying to make sense of Greece’s recent maniacal antics is now desperately asking, “What is this, a banana republic?”

    Well my friend, no, not exactly. This is a Baklava Republic.

    Welcome to a country stuck in its own syrup. A place where a prime minister, Mr. Papandreou, calls for a public referendum on a bailout deal without even notifying the finance minister who has spent months negotiating the deal with the lenders and his fellow Greek ministers. A republic where one egomaniac, Antonis Samaras, can autocratically hold an entire terrified nation and trembling world markets hostage by refusing to sign an agreement- which he publicly says he agrees to.

    Greece, a country which a year ago seemed centuries ahead of the Arab Spring is now regressing so quickly into the most hideous practices of Baklava Republics that any kind of spring for them seems light years away.

    The Greeks have exasperated their supporters and all but exhausted even the EU, the stakeholder with maybe the most to lose from their demise. They have displayed such primitive responses to difficulties that no one in the global community really wants to deal with them anymore.

    In one year, and particularly in the last month of unpredictable counter-productive episodes, the Greeks have virtually alienated themselves from the civilized world they themselves fathered centuries ago.

    If you think that what Sarkozy and Obama said about Netanyahu while their microphones were on was bad, imagine what they and the EU and IMF might rightfully be saying about the Greeks. And note the Baklava parallels between the Greek and Israeli leadership, starting with a lack of transparency and ending with complete impossibility.

    Since the debt crisis began, we have watched our beloved Greece, dizzy with fatigue and despair, teetering on the fulcrum of its future, leaning first northwest like an insecure sophomore posturing to fit in with the polished seniors of the EU.

    Then suddenly like all people under stress, reverting to her primal training on how to survive. Swooning now east to circle around the Mediterranean tragically re-identifying herself with cousins from ancient civilizations that have made minimal progress in their development; Turkey, Iran, Iraq, Syria, Lebanon, Israel, Palestine, Jordan, Egypt, and even Libya.

    These are the Baklava Republics, a continuum of countries related by variations on one pastry, characterized by a pathetic lack of process skills, rule of law as it serves individual agendas, leaders incapable and disinterested in self-regulation, and proud of their willingness to destroy any and everything in the name of defending their dignity.

    A string of countries differentiating themselves from the rest of world with a combination of primary commitment to face-saving, a need to create drama, and a defiance of reality so insanely illogical and destructive that people world-wide see them as nuts.

    Not sure whether a given country could be considered a Baklava Republic? Here’s a litmus test: Are the leaders instantly insulted by anything that can be construed as questioning their honesty or good intentions? Is their best defense acting as if they have been monumentally offended? Do they regularly elevate issues to fight or flight dramas?

    From Samaras to Ahmadinejad, we see the masters of Baklava Republic tactics regularly enact a predictable but no less maddening three-act drama.

    Act One: Outrage: A question about duplicitous behavior is met with incredulous anger; “You dare to question me?”

    Act Two: Arrogance: “You have insulted me and anyone who would be so ill-mannered is so far beneath me that they are unworthy of my cooperation.”

    Act Three: Threat: “I am a victim, rightfully volatile now because of your behavior. Either provide me a face-saving way to get out of this or I will sabotage this process, set fire to the whole country, commit mass invasions, and/or make my child a suicide martyr. It’s dignity or death.” (Additional Baklava Republic specialty: Add concocted conspiracy theory and implication that the alleged perpetrator is evil, sinful, or crazy to Act Two).

    When I recently suggested a commonality among these countries to a senior IMF economist who had told me that Greece’s books were in worse shape than those of a Third World country, the idea of a geographic region of Baklava Republics was immediately dismissed. “No. Turkey is doing quite well.”

    Huh? Boy does Ergodan have you right where he wants you…and right where the Greeks had you when they and you wanted them to join the EU.

    Turkey under Ergodan has become the most sweetly disguised of the Baklava Republics. The reason that the world assumes Turkey has evolved from being a banana or Baklava state is because Ergodan controls the media, and therefore, in true face-saving fashion, manipulates the profile of Turkey that the outside world sees.

    But once you cut through the honeyed layers, you see that Ergodan’s autocratic domination and disregard for rule of law is only degrees different from that of Gaddafi, Mubarak, Assad, Hussein, Ahmadinejad, and Samaras; just better polished to look more politically correct. In some countries Baklava is made with walnuts; in others pistachios or almonds. But nut varieties aside, baklava is baklava.

    Park for a moment the notions that Ergodan has sold the world through his public relations campaign and ask three citizens on the streets of Istanbul what they think about Ergodan. All will tell you what they told me:

    “We are afraid of him. Every day he is increasingly limiting the rights of individuals. Ergodan rule is replacing the rule of law with whatever suites his agenda from Islam tradition and his own ambitions. He is embedding human rights violations into our culture and using intimidation to prevent us from speaking up. Internet is controlled. He has been holding hundreds top level journalists, academics, and scientists in jails for over a year without even charging them.”

    If that is not enough to convince you that Ergodan is deceiving world powers or seducing them enough to collude with him about the validity of his economic standing for their own purposes (one of which Greece did with the EU), here is the clincher I hear repeatedly from Turkish citizens: “Don’t believe that our economy is booming. Ergodan makes up the numbers, releases them to the press he controls, and here in Turkey things are not good.”

    Independent data confirms that Turkey is not only not above any of the Baklava Republics but may be one of the worst. Asli Gurkan of the World Bank writes, “Despite Turkey’s successes in macroeconomic stability and poverty-reduction, the participation of women in economic life is abysmal. Turkey was among the lowest scoring countries in the 2010 World Economic Forum Gender Equality Gap Report and scored 126th out of 134th in the UNDP Gender Inequality Index. What is more worrisome is that women’s economic participation rates have been declining in the last decade.”

    Research on domestic violence and violence against women in Turkey by the General Directorate of the Status of Women states that 41.9 percent of the women in Turkey face physical and sexual violence, 49.9 percent of women in lower income groups are being victimized and 28.7 percent in higher income families.

    Last week Turkey’s parliament became the first national assembly to ratify the new Council of Europe “Convention on preventing and combating violence against women and domestic violence.” Now let’s hope that signing a treaty actually translates into change.

    Turkey also needs to demonstrate greater respect for human right related to religious tolerance. After expressing concern about restrictions on freedom of expression, U.S. Vice-President Joe Biden, visiting Turkey this week stated that the continued closure of the Halki Theological School that trained generations of Greek Orthodox patriarchs “is an anomaly and an unnecessary mark against Turkey’s international image.”

    The best that can be said about Turkey now is that it is in a state of opportunity with a leader who is competent in managing both internal and external affairs. Whether Ergodan will bring integrity to the image of Turkey he is projecting or just continuously improve his skill at hiding the truth remains to be seen.

    On the other side of the Aegean, the only thing left separating Greece from the rest of the Baklava Republics is that Greece is not yet guilty of a history of violating human rights. Perhaps this is a line that the fathers of democracy can never cross. But if Greece does not remain in the EU and basic resources become acutely scarce, as may now be inevitable EU or no EU, the impulse to manage desperately violent people by means bordering on human rights violations will surface.

    Time will tell if this will happen and if even approaching this boundary of behavior will shock the Greeks into gaining some self-control. Or if, since we are talking baklava, why bother avoiding the obvious metaphor, Greece will crumble into bite-size morsels to be eaten by duplicitous Turkey and others awaiting her demise.

  • Turkey’s Babacan: euro crisis not dampened desire to join EU

    Turkey’s Babacan: euro crisis not dampened desire to join EU

    TOKYO | Tue Dec 6, 2011 4:59am EST

    Dec 6 (Reuters) – The debt crisis in the euro zone has not dampened Turkey’s desire to join the European Union, Deputy Prime Minister Ali Babacan said on Tuesday, as it seeks to carry out political reforms to meet conditions of membership.

    Speaking at a news conference after meeting with Japanese cabinet ministers, Babacan also urged European countries to act decisively to deal with the sovereign debt crisis there, warning of global consequences if they fail to get their act together.

    “We hope that EU member states who have problems do their homework, and everybody keeps their houses tidy and clean,” he said.

    “They should be careful about their budgets and they should do reforms … When there are holes in budgets, no matter how much the European Central Bank prints money it’s not going to be enough. They have to close the holes first and then put money in.”

    The ECB is likely to cut interest rates on Thursday and offer ultra-long liquidity operations to support banks, while leaving the door open to further measures to fight Europe’s debt crisis if governments agree fiscal reforms.

    Babacan said that it was important for Turkey to improve in areas such as the rule of law and the quality of democracy in order to meet the political criteria of EU membership.

    However, the minister, who is responsible for overseeing the economy, said that the EU was no model for Turkey in terms of economics.

    The world’s 16th largest economy is expected to grow 7-8 percent this year after expanding 9 percent last year. Turkey is also aiming to reduce its debt-to-GDP ration to 32 percent by the end of 2014 from the current 39.8 percent, Babacan said.

    Last month he said that Turkey’s 2012 growth forecast of 4 percent might be negatively affected if the debt crisis in Europe worsens.

    A rising Muslim democracy, Turkey began accession talks with Brussels in 2005, but progress has been hobbled by tensions between Ankara and EU member Cyprus as well as opposition within France and Germany.

    President Abdullah Gul said last month that delays in Turkey’s negotiations to join the EU were becoming “insulting”, warning that support for EU membership among the Turkish people could be lost.

    But Babacan said the timing is “not very important as of now.

    “For us what’s important is keeping the membership target … We applied in 1959. We are very patient.”

    via Turkey’s Babacan: euro crisis not dampened desire to join EU | Reuters.

  • PROFILE-Turkey’s Central Bank Governor Erdem Basci

    PROFILE-Turkey’s Central Bank Governor Erdem Basci

    Position: Governor of Central Bank of Turkey

    Incumbent: Erdem Basci

    Date of Birth: Aug. 9, 1966

    Term: April 2011 to April 2016.

    erdem basci

    Key Facts:

    — As deputy central bank governor for the last eight years, Basci has been at the heart of Turkey’s transformation from an economic basket case to a stable, fast-growing economy.

    — The respected former academic, who has taught in Turkey and Britain, is the architect of the bank’s unorthodox and widely criticised strategy of countering a worryingly high current account deficit through a policy mix of lower interest rates and higher required reserve ratios.

    — Basci, 45, is a contemporary of Economy Minister Ali Babacan. Both their fathers ran businesses in Ulus, the traditional heart of Turkey’s capital Ankara, and he served as an aide to the minister before joining the bank.

    — Basci’s wife wears the Islamic headscarf, reason enough in 2006 for the country’s then-president, staunchly-secular Ahmet Necdet Sezer, to veto him as governor on ideological grounds.

    — Having inherited record low inflation levels, with consumer price inflation standing at 4.26 percent in April, Basci is now running a Turkish economy that will show close to double-digit inflation for 2011, with a lira currency that has depreciated by around 20 percent.

    — To contain inflationary pressures and help protect the lira, the central bank shifted to another controversial strategy in late October by using the overnight rate corridor to tighten liquidity, while leaving the policy rate, the one week repo rate, at a record low 5.75 percent. Bankers feel the new methods create uncertainty and would prefer the policy rate to be used as the main monetary tool.

    — The economy is expected to have grown by 7 percent in 2011, slowing from 9 percent in 2010. But, due in large measure to the euro zone’s debt problems, there are concerns that Turkey could face a hard landing in 2012 at a time when the bank should be reining in inflation, making Basci’s job that much trickier.

    via PROFILE-Turkey’s Central Bank Governor Erdem Basci | Reuters.

  • “Halal Whisky” Brand ArKay Launches

    “Halal Whisky” Brand ArKay Launches

    “Halal Whisky” Brand ArKay Launches

    Posted by Barry Silverstein on December 2, 2011 05:30 PM

    viskiIslamic law forbids the use of alcohol — and that means about a quarter of the world’s population cannot enjoy the taste of whisky. At least not until now.

    Enter ArKay — the world’s first alcohol-free whisky-flavored beverage that has been halal-certified (halal signifies the substance in permissible under Islamic law).

    The brand came about when a group of friends were drinking and sharing ideas, according to Zeshan Ahmed, VP of Sales for Arkay Beverages. “They felt there was a hole in the beverage market that needed to be filled with something like this,” Ahmed told brandchannel. “They were looking for a flavor that would be well known and universal. The flavor of whisky came to mind. It took five years to develop the rich flavor and smell that is the trademark of ArKay.”

    While ArKay mimics the taste of whisky, it is classified as a soft drink since it contains no alcohol. It conforms to halal guidelines and meets the ingredient requirements of both the US Food and Drug Administration and the European Economic Community. The beverage will be available in both one-liter glass bottles and 12-ounce aluminum cans. The packaging uses green and gold as the primary colors and carries a design that is vaguely Arabic in look and feel. The word “ArKay” appears to be almost handwritten in black letters. Ahmed calls it “a great fresh brand approach.”

    The name “Arkay” is as unconventional as the product itself, and it came about serendipitously. One of the original owners of the company spilled hot coffee at himself at a meeting and was asked, “Are you OK?” According to Ahmed, “the other owner had an epiphany and shouted ‘Arkay’ and that’s when the name came about.”

    While the company refers to the product as “halal whisky,” Ahmed says ArKay targets “people who can’t drink due to medical reasons and religious beliefs.” The brand, he says, “was designed for everyone to enjoy.” Since it tastes and looks “exactly like traditional whisky,” ArKay can be used for drinking straight up, on the rocks, or with soda and mixers.

    Headquartered in Fort Lauderdale, Florida, Arkay Beverages is currently looking for wholesalers and retailers both in the U.S. and worldwide.

    In recent years, brands have recognized the value of the Muslim market and have started to create halal-certified foods and products. In the U.S., for example, a $200 billion market of six to eight million American Muslims is still fertile ground for brand marketers and is just beginning to attract the attention of major marketers. While the halal market is roughly equivalent to the Kosher foods market, the number of products targeting the Kosher consumer is much greater.

    Clearly, Arkay Beverages hopes to fill a gap with its halal whisky, both in the U.S. and globally.

    More about: ArKay, Whiskey, Alcohol, Booze, Islam

    via “Halal Whisky” Brand ArKay Launches.