Author: OBG Admin

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Trusting the market: Real estate investment trusts continue to attract investment to non-residential segments

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Mexico’s real estate sector has been witnessing the growth and impact of real estate investment trusts (REITs), known locally as Fideicomiso de Infraestructura y Bienes Raíces (FIBRAs). These are vehicles for real estate portfolio management which rely on the issuing of real estate certificates to investors. As of early 2015, nine different REITs were active in the Mexican market, investing in and managing property portfolios in office, retail and industrial real estate, as well as hotel units. Because they can use their financing mechanisms to

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

After a piece of the pie: States eye economic benefits of expanding the MICE segment

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With Mexico regaining its spot among the world’s top 10 tourist destinations in 2014, it is no surprise that the meetings, incentives, conferences and exhibitions (MICE) segment is becoming increasingly dynamic. Recognising the segment’s importance, particularly for states that have traditionally been primarily sun and sand destinations, state authorities are now developing strategies to raise their competitiveness, with a view to attracting a bigger share of events. The current investment in MICE infrastructure is set to increase the country’s capacity and will also contribute to a diversification of MICE destinations across the country in the medium term. By The Numbers According to a study by

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Changing landscape: Introduction of public investment vehicles helping to shape hotel market dynamics

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The Mexican hotel industry has been in recovery mode since 2009, after feeling the effects of the economic downturn from the 2008 financial crisis and the breakout of the H1N1 virus in 2009. According to consultancy firm Jones Lang LaSalle (JLL), the industry posted average annual growth of 4.7% on occupancy rates and average daily rates in the period from 2009 to 2014, while revenue per available room grew at an annual average of 9.5%. Six consecutive years of improving performance has, once again, raised

Niamkey Isidore Tanoé-CEO-Atlantique Finance

A maturing market: Pharmaceuticals companies adjust business strategies to changing market dynamics

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The continued increase in market share of low-cost generics, coupled with the consolidation of purchases by the institutional market led to slower revenue growth in pharmaceuticals for human use in 2014. Nonetheless, the strengthening of Mexico’s regulatory framework is opening up new opportunities. Market Fundamentals Generating annual revenues of around $13bn, Mexico’s pharmaceuticals industry is among the 15 largest in the world and second only to Brazil ($16bn) in Latin America. According to investment promotion agency ProMéxico, the industry represents 0.6% of overall GDP and 3.6% of manufacturing GDP. Figures from the National Chamber for the Pharmaceuticals Industry (Cámara Nacional de la Industria Farmacéutica, CANIFARMA)

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Dynamic efficiencies: Government establishing a network of agro-industrial clusters

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In an ongoing effort to increase the competitiveness of Mexico’s agriculture sector, the government of President Enrique Peña Nieto is working to establish a national network of agroparks – agro-industrial clusters that concentrate various parts of the production value chain, from storage to processing, value addition activities and logistics services. The concept, which is part of the government’s Programme for Agrofood Productivity and Competitiveness, is expected to spur dynamism in the agro-industry sector and expand the country’s export potential considerably. National Network In October 2013, the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación, SAGARPA)

George Richani-CEO-Al Ahli Bank of Kuwait

Looking east: Trade with Asia is growing and diversifying

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Following a collapse of the international shipping market, in 2012 the container route from Shanghai to the Gulf through Dubai experienced the second-highest freight rate growth in the entire intra-Asian region. This is part of an emerging trend, with GCC-Asia trade maturing. A relationship that was once just based on energy demand is diversifying and the GCC is seen as a viable market for Asian goods and investment, a crucial transit point – given its developed infrastructure – for the fast-growing markets of Africa, and a high-quality producer of goods and services in its own right. SHIFTING PARTNERSHIPS: The change in emphasis of GCC trade

Pham Hong Hai-CEO-HSBC Vietnam

A healthier business climate: Government reforms seek to attract new investment through public-private partnerships

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The Kuwait Development Plan 2015-20 looks to address a range of challenges and hurdles that have hindered the country’s economic development strategy over the last five years. While 2014 proved to be a stellar year in terms of projects awarded and implemented, the government has recognised that reforms are required in order to maximise the country’s development potential. The government has indicated that the country needs to reform two key areas in order to maintain steady growth in its discussions with the IMF. These include

Enda Kenny-Prime Minister of IrelandEnda Kenny-Prime Minister of Ireland

Safe and sound: Ensuring long-term financial stability is a government priority

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While Kuwait’s banking sector fared well in the wake of the 2007-08 international financial crisis compared to many GCC states, the sector regulators – the Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA) – have nevertheless worked to shore up the industry to ensure its long-term stability. Since 2008 the government has introduced a raft of ambitious legislation aimed at instituting best practices in risk management and corporate oversight, with the overarching objective of protecting bank investors, retail customers and corporate clients alike. This effort has largely been successful. As of September 2014 the capital adequacy ratio (CAR) in Kuwait’s banking industry

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Setting the wheel in motion: New development plan lays out an ambitious project agenda

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After setting out a broad outline of the country’s second five-year development plan in August 2014, the government approved the KD34.15bn ($117.65bn) strategy in February 2015. The announcement builds on a successful year of project implementation in 2014 and emphasises a commitment from the authorities to maintain capital investment, despite the plunge in oil prices. Moreover, it provides a welcome boost for the country’s growing private sector. SPECIFICS: The Kuwait Development Plan (KDP) 2015-20 puts into motion the government’s broad goal of transforming the country into a regional trade and financial hub by 2035. The plan is a two-pronged strategy to push through major economic

Jazeera Airways: Aviation

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THE COMPANY: Established in 2004, Jazeera Airways operates as a low-cost carrier from Kuwait and flies to high-demand business, leisure, family and weekend destinations such as Dubai, Bahrain, Beirut, Alexandria and Cairo. The company first listed on the Kuwait Stock Exchange (KSE) in 2008, and as of early 2015 Jazeera operated a fleet of seven Airbus A320 aircrafts. The company is now catering to almost 20 destinations. Jazeera is one of the key large-capitalisation stocks listed on the KSE and is part of the KSE-15 Index. The firm is also one of the top 25 companies in Kuwait with a market capitalisation of KD218.4m ($752.43m).