The Flare Edition 16
Sunday, January 01, 2012
Welcome to the 16th Issue of the Flare. As the year end draws to a close, we begin this quarter’s Flare with a round up highlighting the most important trends of the past year for the GCC energy project capex award. In 2011, Contax Partners reveals that the year witnessed the award of c.$70bn worth of energy projects in the GCC as of Early Dec 2011, a figure which is 18% lower than c.$87bn awarded in 2010. Saudi Arabia and the UAE continue to be the leading markets in the GCC accounting for c.70% of all awards in energy sectors. Interestingly, the GCC energy sectors witnessed a project capex award realization rate of 33% in 2011, which is above the 2010 level of 30%. Meanwhile, five sectors revealed project capex realization rates above the market average of 33%, and these were gas processing, metal, oil & gas exploration, power and water. Looking forward, c.$314bn worth of projects are planned for award in the rest of 2011 and 2012, and Saudi Arabia and Kuwait are forecast to lead the investment drive. As we move into 2012, Contax Partners will continue to track how GCC countries measure up in terms of their projects realization rates throughout the coming year.
In addition to the usual Capex review, in this quarter’s Flare we bring you another three new feature articles. In the first article, I will be providing a recap of some of the interesting trends that we have observed during 2011 within the GCC energy industry, and furthermore will be looking ahead at how these trends may shape 2012. These trends include continued penetration of the market by Korean Contractors, enhancements to government investment plans in response to anti-government protesting observed in certain countries across the region, continued strong investment in petrochemicals, refining and oil & gas production, and exchange of information by project owners in order to enhance best practice and improve project execution records. In the second article, VinodKumar Rao continues this theme by looking at the local content initiatives that are being championed among the GCC member countries given the recent spate of unrests across the GCC, and finally, Saiga Chandy provides an interesting update on the measures being taken by various governments in the Middle East in the renewable energy sector, including developments in the nuclear energy segment.
This quarter, the Contax Team reviews two books which may be of interest to you: ‘Crossing the Energy Divide’ by Robert and Edward Ayres, who propose an easy to implement energy management strategy that would bridge the transition from the fossil-fuel based system into renewables and ‘Social Intelligence’ by Daniel Goleman focused on the psychology of human relationships.
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The Flare Edition 15
Saturday, October 01, 2011
Welcome to the 15th Issue of the Flare. As usual, we begin this quarter’s Flare with an analysis of project Capex, with a focus on the new project announcements that have taken place to date in 2011 in order to identify emerging trends in the upcoming energy project opportunity landscape. This analysis reveals that the majority of new project announcements to date have taken place in Saudi Arabia, Qatar and the UAE, representing c.90% of all new project announcements. Furthermore, c.60% of all the new project announcements in Q1-Q3 2011 are within the alternative energy and power sectors, accounting for c.42% and c.19% respectively, whilst secondary sectors with planned investments include the gas processing and petrochemical sectors. This analysis highlights some interesting trends in terms of where upcoming investment is planned from both a country and sector perspective.
In addition to the usual Capex review, this quarter we have three new feature articles hot off the press for you. In the first article, following on from our Iraq article a few editions ago, I take a look at the current project landscape within Iraq to assess upcoming workload, and the strain it is likely to place on critical construction inputs, existing infrastructure and logistics. As momentum builds in Iraq, it is clear that project activity is heating up, and associated challenges will emerge in the coming year. The second article, by Saiga Chandy, takes a look at another interesting country in the region where momentum appears to be building, Kuwait. In a month where Kuwait has pumped its largest amount of oil since 2008, Saiga assesses the ambitious 4 year development plan in Kuwait, and upcoming project opportunities in the country’s energy landscape. In the final article, we take a look at the upcoming investment plans in the power, water and alternative energy space, which reveals continued investment in power and water in the short term, and a strategic switch oriented towards alternative energy in the longer term, which Contractors and Service Providers to the energy industry may need to begin positioning themselves for in order to take advantage of emerging opportunities.
This quarter, the Contax Team reviews two fascinating books: ‘The Daily Drucker’ by Peter F. Drucker, which provides insights and motivational tips on how to get things done; and ‘Catch-up and Competitiveness in China’ by Jin Zhang, which provides a great insight into the history of Chinese Oil Companies.
As summer ends, momentum is building across the region with project activity heating up in various countries. Saudi Arabia has maintained its levels of energy project activity throughout 2011, along with the UAE, whilst Iraq and potentially Kuwait appear to be gathering steam. As we move towards an anticipated peak in project workload in 2013 across the region, ramping up in additional countries such as Iraq and Kuwait will increase the already anticipated strain on commodities and resources across the region. Project Owners and Contractors will need to stay ahead of the game in order to mitigate the risks associated with the energy project landscape across the region, and Contax Partners will continue to report and advise on some of the key issues arising. As a final note, please do send us your comments, questions and any areas of interest or feedback.
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The Flare: Edition 14
Thursday, June 30, 2011
In this edition, we provide some food for thought for many companies operating across the region. As usual, we begin this quarter’s Flare with an interesting analysis of project Capex award for the first half of 2011 versus the first half of 2010. This analysis reveals that project Capex award for H1-2010 and H1-2011 are actually at comparable levels, however the number of projects awarded in each period were quite different, with 150 projects awarded so far this year versus 121 during the same period last year.
In addition to the usual Capex review, this quarter we have three interesting new feature articles for you. In the first article, Vinod Rao provides a status update of Saudi Aramco’s General Engineering Services (GES) Plus Initiative, in which Saudi Aramco seeks to execute all of its FEED and engineering work In Kingdom (IK)by encouraging existing General Engineering Services (GES) contractors to develop JVs with major Out of Kingdom (OOK) engineering firms to establish integrated “super GES entities” (GES+). Five major Contracts have now been awarded, leaving us to ponder whether round 1 is now closed, or other opportunities will arise.
The second article, by Vikas Kumar, looks forward to Qatar’s preparation for the FIFA World Cup of 2022. The Country will witness a strong dose of investment which in turn will open the door to a multitude of opportunities for Contractors in the region, and begs the question, are Contractors positioning themselves to take advantage of this growth? Finally, Mohammad Ahsan provides an interesting overview of the green building initiatives that are taking place in the region.
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The Flare: Edition 13
Thursday, March 31, 2011
As 2011 began, we truly believed that this was the year for change. It seems as though our gut feeling was right! Despite the somewhat plentiful award of projects in the GCC over the past few months, Q1 2011 has been somewhat overshadowed by news of global natural disasters and regional political/civil unrest. As a result, oil prices have risen to above $100 per barrel and it is forecast that, despite increases in supply, prices will continue to increase as oil is traded with higher political premiums. Coming back to the regional level, we are already questioning what this will mean for the National Oil Company (NOC) energy and energy related investment plans and future spending habits? Will projects continue to be awarded as planned, will additional projects be pushed through the pipeline or will they be postponed?
To begin this edition, Nora Ismagilova and Kathleen Bury take a reflective look at the project Capex award related activities that have taken place within Q1 2011 and offer some thoughts as to what may lie ahead for the remaining quarters in 2011.
As a new feature, Nora Ismagilova and Kathleen Bury provide the Contax Partners Top 10 ranking of South Korean Contractors based upon project awards between Jan 2010 and March 2011 – which companies do you think are included and what would be your ranking?
Ann-Marie Carbery Antoun takes a look at the journey of post-war development in Iraq; providing an update on the developments that have taken place over the past few years and examining some of the opportunities that are likely to present themselves in the near future.
Filippo Fantechi and Victoria Cox review two books; The Why of Work: How Great Leaders Build Abundant Organisations That Win written by Dave and Wendy Ulrich, highlights why the sense of purpose is important for an organisation in order to achieve their business goals and ensure greater value creation for customers and external stakeholders. The second book, IT Savvy: What Top Executives Must to Know to Go from Pain to Gain written by Peter Weill and Jeanne Ross, emphasises the role and value that IT brings to business and focuses on the leadership skills that top executives should adopt in order to survive in the digital era.
Finally, Kathleen Bury would like to take this opportunity to let you know that this will be my last issue as Editor. Kathleen will be leaving Contax Partners at the end of March and will be handing over the Editor responsibility to Ann-Marie Carbery Antoun. Thank you for reading the Flare and for your continuous positive comments and suggestions over the years.
In keeping with 2011 being the year of change, we do hope you like the new face life that we have given the Flare and that you enjoy the read. If you have any comments, questions or suggestions, please contact Ann-Marie at theflare@contaxpartners.com.
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The Flare: Edition 12
Thursday, December 23, 2010
2010 has been an interesting year; global markets have continued to struggle and climb out of the ‘valley of despair’, oil prices have bounced around between the $65 and $90 per barrel goal posts and GCC countries continue to spend large amounts of capital to grow their hydrocarbon and associated infrastructure.
To kick off this edition, Nora Ismagilova and Kathleen Bury take a reflective look on the project Capex award related activities that have taken place within the year and offer our thoughts and insight into what may lie ahead for 2011.
Jaivime Evaristo reviews the trends and drivers in the petrochemical sector of the GCC arguing that the high correlation of petrochemical demand to global economic activity and the emerging issues affecting feedstock availability present both risks and opportunities to both Project Owners and Contractors.
Wissam Batran provides insight into the growing dominance of the South Korean EPC contractors in the region and looks to who may be riding the next wave.
Based upon Contax Partners’ World Class Business Development methodology, Tony Bury and Kathleen Bury provide insight into how the level of one’s trusted advisor status early on in a bidding cycle can offer significant rewards and save significant costs.
Finally, Ann-Marie Carbery Antoun reviews two books; the first book, ‘The Powers that Be: Global Energy for the 21st Century and Beyond’ written by Scott Montgomery focuses on the need for country leaders and the ordinary person to not only consider a diversified set of energy sources to address the global energy crisis, but to understand the importance of the decisions that they make regarding their energy usage. The second book, ‘The Vanishing Face of Gaia’ written by James Lovelock describes how Gaia (the Earth) will once again save itself from the environmental problems that the human race has created and that we should actually be focusing our attention on how to save ourselves, the human race.
Over the past few months, the Contax Partners’ team has participated in a number of philanthropic activities and events; in September, the Dubai office volunteered their time to help sort through and pack over 85 boxes of clothes (in 2 hours) and internally raised over AED2500 to support The Pakistan Flood Relief Effort. Our efficiencies were apparently so high that the Pakistan Association Dubai asked if we could come back a second time! In October, the Dubai office participated in the Radisson Blu Shoe Box Appeal which works together with the Red Crescent Society in Dubai to support the UAE’s underprivileged. In November, Filippo Fantechi confirmed Contax Partners’ support as a ‘Hole Sponsor’ at the American Mission Hospital (AMH) Island Classic Charity Golf Tournament. The tournament raised funds for its hospital’s charity care program, new clinics and equipment.
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The Flare: Edition 11
Thursday, September 30, 2010
Despite the slowdown in activity that traditionally takes place within the Middle East over the summer months we have continued to see numerous and sizable project awards across the region. Substantial opportunities continue to present themselves within the market. Gaining an understanding of the factors that affect these opportunities from both a macro and micro perspective through the collection of trusted market intelligence and the development of risk mitigation strategies will significantly enhance your success rate.
To kick off this edition, Kathleen Bury and Nora Ismagilova discuss and offer insights into which of the GCC countries will most likely offer the greatest share of opportunities over the next few years and ask the question: are you targeting the right markets and projects?
Jaivime Evaristo reviews some highlights regarding the tight resource market conditions during the last construction boom in the GCC. He argues that understanding the construction sector’s evolving carrying capacity, through the lens of a systems inquiry, provides an operative mechanism upon which future risks in construction could be rationally priced and mitigated.
Ann-Marie Carbery Antoun and Jaivime Evaristo provide insights into the developing operations and maintenance (O&M) sector within the GCC. They highlight the need for companies, wishing to participate within this up and coming sector, to fully understand the market dynamics such as a customer’s propensity to outsource their O&M in order to target and position themselves correctly and thus increase their chances of success.
Based upon Contax Partners’ World Class Business Development methodology, Tony and Kathleen Bury provide insight into the importance of developing a ‘trusted advisor’ status with your key customers to facilitate the development of customer orientation, key to short and long term business profitability.
Finally, Kathleen Bury reviews two books which focus on what makes exceptional people exceptional and different from the average person (The Extra One Percent by Rob Yeung) and the factors that lead to irrational thinking and ultimately flawed decision making (Irrationality by Stuart Sutherland).
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The Flare: Edition 10
Thursday, July 01, 2010
Within the second quarter of 2010, we have seen a great deal of project award, delay and cancellation activity within the GCC energy project landscape. Successful decision-making in these uncertain times is not an easy feat and the need to truly understand the market in which you operate, from an opportunity, customer, competitor and supplier perspective is ever more critical.
To kick off this edition, Kathleen Bury and Nora Ismagilova discuss the Capex award realisation rate trends that have been seen in the GCC market over the past few years. We look at the market from a variety of angles; countries, sectors and project sizes, and discuss the effects of these trends on each of these categories in turn with a view to answering one question, is history repeating itself in 2010?
Following on from this article, Leonie von Klüchtzner discusses the need and benefits for project owners to identify, adopt and practice best practice project planning and execution process to manage the projects in the region that are becoming larger and more complex.
Ann-Marie Carbery Antoun provides insights into the continued opportunities within the GCC power sector and highlights the need for companies, wishing to participate within this upcoming sector, to position themselves early to increase their chances of success.
Based upon Contax Partners’ World Class Business Development methodology, Tony Bury and Kathleen Bury provide insight into the need for customer orientation in today’s world to heighten the chances of securing opportunities in the short term and ensuring a profitable business in the long term.
Finally, Ann-Marie Carbery Antoun and Jaivime Evaristo review two books which focus on China’s role in the changing global political landscape and stresses the need for people to change the way that they think so as to appropriately deal with the ‘problems and conflicts’ of today’s world. In the first book, ‘When China Rules the World’, Martin Jacques explores how China’s forecast rise as an economic superpower will change the future global ‘balances’ and create a new world. In the second book, ‘Think! Before it’s too late’, Edward de Bono examines the fact that ‘world thinking cannot solve world problems because world thinking is itself the problem’ and uses some of his thinking techniques together with new ideas to demonstrate how we can change the way we think and thus change the level of thinking for the future
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The Flare: Edition 9
Thursday, April 01, 2010
As we come to the end of Q1, it is clear to say that we have seen a definite pick up across the world with regards to economic and business activity. Focusing on the GCC energy and energy related market specifically, we have already seen the award of c.$8bn worth of projects this year and are nearing the finishing line with regards to a number of key projects that have been on our radars for the past few years. So what is next? What are the next major opportunities and markets for companies to focus on?
Thanks to your feedback, we have included a new quarterly feature within The Flare which for this edition acts as our cover story: Contax’s Capex Corner. Within this section, Kathleen Bury and Nora Ismagilova discuss the Capex activity that has taken place over the past quarter and provide insight into the coming quarters which are expected to make 2010 the second year with higher than average spending plans. The question is, are we ready for the next workload peak?
Jaivime Evaristo discusses about the infant industry argument and how it could shape the future of the GCC energy sector. Drawing parallel from two case studies – the Norwegian petroleum system in the 1970s-80s and Saudi Arabia today – Jaivime highlights the fundamental similarities of both markets as governments take the rein to drive employment and industry knowledge /skills transfer.
With all of the recent field award activity in Iraq over the past year, it is becoming clear from our research that the need to fill the skill gaps on the ground is of utmost importance to those looking to operate in the market. In this story, Kathleen Bury sheds some light on this area and suggests that perhaps we should look to other markets that have similar dynamics for lessons learnt and inspiration as to how to deal with this huge feat.
Leonie von Kluechtzner provides insights into how two developments in the area of unconventional gas - the rise of shale gas and the emergence of coal bed methane (CBM) – are affecting the global gas export and the regional LNG markets.
With the requirement for robust business development practices in ensuring that sales are generated for a business, based upon our World Class Business Development methodology, Tony Bury and Kathleen Bury provide insight into the initial and key critical stage of business development; opportunity pipeline development and management.
Finally, Ann-Marie Carbery Antoun reviews two books which focus on the subject of what really motivates and drives us to take certain actions. Firstly, she reviews a book called ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism by Yves Smith. This book highlights the behaviours and role that economists and policy makers had in creating the economic downturn, driven primarily by their self interest of enriching themselves at the expense of others. The second book is Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink. Within this book, Pink challenges the beliefs that people can only be motivated by the hope of gain and the fear of loss and proposes that this carrot and stick mentality can actually stifle creativity. Instead, he states that what motivates us is the ability to grow and develop and realise our full potential.
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The Flare: Edition 8
Wednesday, December 30, 2009
As we come to the end of 2009 and reflect on the past 12 months, most will agree that it has been an extremely turbulent but also interesting year. With c.$60bn worth of energy and energy related projects having been awarded to date this year, the reputation of the gulf being the ‘land of opportunity’ still stands. This has primarily been driven by the fact that project owners are looking to take advantage of reduced Capex costs and ensure that their strategic objectives are met. However, with this splurge in spending comes a number of project planning and execution risks, which for many of us are not new concepts; critical input demand and supply imbalance, overstretched contracting market, poor contractor selection, low levels of construction quality, schedule delays and ultimately cost escalations.
In our cover story, Ann-Marie Carbery Antoun discusses the importance of understanding which contractors are ‘best fit’ for your project and how the undertaking of a robust due diligence process on potential or chosen contractors can minimize the substantial risks associated with project execution.
Following on from this article, Jaivime Evaristo further discusses how subcontractors are expanding their scopes of service to ensure sustainable future revenues and to gain greater visibility with the project owner.
Leonie von Klutchner then discusses and sheds light on the changing gas market. As the market moves from being a sweet and ‘easy’ gas market to a sour and ‘tight’ gas market, it poses a number of challenges for companies operating in the market. However, should the right strategy be developed, this shift could also present huge opportunities for those who position themselves early and well.
Finally, we have reviewed two books which focus on topic of leadership. Firstly, we have reviewed a book called Strengths Based Leadership by Tom Rath and Barry Conchie. This book discusses the importance of identifying one’s natural strengths and assessing the degree to which they will work within a team environment, in addition to providing leaders with a rich paradigm for considering new approaches in attacking organizational priorities. The second book is called The Leadership Challenge by James M. Kouzes and Barry Z. Posner. With this fourth edition, the authors provide us with both theory and case studies to further enhance our understanding of the dynamics of leadership and provide us with practical advice on how to become better leaders.
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The Flare: Edition 7
Friday, October 30, 2009
It is one year since the collapse of Lehman Brothers which created turmoil in global markets and initiated endless reporting on ‘recession’, ‘depression’ and ‘economic downturn’. During this period, we have witnessed strains in financial markets across the globe. Declines in property sales, particularly in the US, have been observed, falls in commodity prices, high unemployment rates, etc., etc., have all been characteristics of the financial crisis around the world, and here in the GCC, at the beginning of the year, many envisaged a year of doom and gloom with few opportunities available within the GCC energy project Capex market. However, as Contax forecast at the beginning of the year, within every negative situation, there is always a positive to be found, and despite declining markets, commodity prices, unemployment, etc., there have been some positive shifts in the GCC energy project Capex market over the past year.
In our cover story, Kathleen Bury discusses and illustrates just how positive the activity that has taken place in the GCC energy project Capex market has been over the past 8-9 months, especially in comparison to previous years. Hopefully you have been able to take a slice of that action. However, if not, she looks to provide you with our fact based view of how we see the remainder of 2009 panning out in terms of project awards. Are you ready and positioned for these future opportunities?
Over the past few months, there have been some considerable changes in the world of Contax. Firstly, following a successful management buyout of Contax by Filippo Fantechi, a new company called Contax Partners has been launched. As Contax Partners, we will continue to support and empower our customers and partners through the provision of our leading business development and advisory services. In addition, Contax successfully completed the sale of our online market intelligence database, Contax Market Intelligence, to MEED in July.
Following Filippo Fantechi’s management buyout and appointment as Chief Executive Officer of Contax Partners, we thought that it would be a great opportunity for us to formally introduce him to you and let him tell you a little bit about himself, what drives him and what his vision is for Contax Partners going forward.
Ann-Marie Carbery Antoun discusses how, given the region’s forecast demand for power over the coming decades and the shortages in gas supply, nuclear energy is being seriously discussed as a viable alternative within the GCC, especially the UAE and Saudi Arabia.
Finally, we have reviewed two books which tackle two different issues that are currently being faced by many of us, either in the workplace or within our personal lives. Firstly, we have reviewed a book called Peaks and Valleys by Spencer Johnson. Following the success of his previous book, Who Moved My Cheese, Peaks and Valleys once again uses a story to demonstrate how one can manage the ups (peaks) and downs (valleys) in ones life and ensure more peaks than valleys. The second book is one called The Portable Mentor by CY Charney. As organisations are being reshaped, resized and reorganized to ensure that they are well positioned for the current future market scenario, it is often the case that people lose a mentor, coach, sounding board and/or confidant in the process. This book looks to try to fill, what is hopefully an interim void and provide you with tried and tested advice to help you find a quick solution to dealing with issues at work, improving yourself, your performance and your career.
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The Flare: Edition 6
Sunday, August 30, 2009
Since our last edition, positive rumblings of ‘we are coming out of the depths of the recession’ are being heard across the world. Whether or not this will in fact be true in the long run is unknown. However, what is clear is that the GCC energy project market is showing significant and positive signs of activity with a number of project owners pushing ahead with their planned investments.
In our cover story, Vikas Kumar and Kathleen Bury look beyond the doom and gloom surrounding the petrochemical market to provide insight into when we believe the next boom cycle will begin and what project owners and contractors can do today to position themselves for the forecasted upturn.
Wissam Batran and Kathleen Bury then explore the ways that project owners are responding to the new trends occurring within the contracting landscape and provide further insight into what steps can be taken to ensure that the ‘best fit’ contractors are identified, attracted and selected at the right price for projects.
Jaivime Evaristo then goes onto shed some light on the issues and pressures that companies are currently facing around liquidity and working capital management practices.
Finally, we have done something slightly different this edition and feature a DVD and a book. Firstly, for those of you who are rugby fans, we feature a DVD called ‘Living with Lions’ that follows the Lions tour of South Africa in 1997. Although appropriately timed as the Lions are currently touring South Africa, the reason for this review is that the film offers significant insight into to the workings of a world-class team and is something that we can all learn from, regardless if you are rugby fans or not! Secondly, we feature a book called ‘Outliers’ by Malcolm Gladwell which looks into what really makes people successful; not from the point of view of what successful people are like, but from the point of view of where successful people are from: their culture, their family and their generation. Gladwell draws likenesses between different groups of ‘successful people’, such as how the careers of successful business men such as Bill Gates and the performance of world-class football players are alike and what top fighter pilots and The Beatles have in common
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The Flare: Edition 5
Tuesday, June 30, 2009
Over the past 2 months, we have continued to analyse and understand the depths to which this recession may go and are trying to understand the new challenges and dynamics that this economic situation is and will pose for all of us in the future.
In our cover story, Sebastian Lagaditis looks at the long term oil supply and demand outlook and highlights the need for further Capex investment, especially by National Oil Companies, to ensure that the forecast undersupply gap is minimized.
Kathleen Bury then looks to provide an introduction to what she consider as one of the most exciting emerging energy markets in the world – Iraq. The first steps towards the opening up of this market have been taken with leading international oil companies of various sizes involved in the first two oil and gas concession bidding rounds. However, once these fields are awarded, questions around the challenges and risks associated with operating in an opaque market such as Iraq poses, still remain.
Jaivime Evaristo takes a look at the current developments and forthcoming increases in aluminium production in the GCC, within the context of the global economic situation, given the region’s diversification agenda. Jaivime highlights that developing downstream industries in conjunction with the upstream initiatives, will not only increase the economic and social benefits within the country, but help countries weather out future economic storms.
Finally, we feature two books that tackle two interesting topics, given the current times. Firstly, we feature a book called ‘Pragmatic Thinking & Learning’ which provides you with a toolkit on how to improve how you can get the most out of your brain and acquire new skills. The second, ‘The Namesake’ looks at the ‘isolation and identify’ challenges sometimes associated with living and growing up amongst different nationalities and cultures.
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The Flare: Edition 4
Monday, March 30, 2009
Since our last edition, the world, as many of us have known it over the past few decades, has changed as the global economy has entered into a recession. Questions such as how deep and long will the recession be and are there still opportunities out there are resonating off the walls of every meeting room. Although we do not proclaim to have the answer to the former question, we do wish to give you some good news within this edition of The Flare as to the latter question – there are still opportunities out there!
In our cover story, Ann-Marie Carbery and Kat Bury are the prime bearers of this good news as they discuss the effects of the credit crunch on the Middle East project Capex market and how it continues to show signs of activity, in particular the cash rich nations UAE, Saudi Arabia and Qatar.
Nora Ismagilova and Kathleen Bury help us reflect on 2008 and the trends that took place within the year and provide further insight as to how we can take advantage of the opportunities that are on the table in 2009.
Further to numerous reader requests, Tony Bury (Contax Chairman) and Filippo Fantechi (Director of Business Advisory and Development) have sought to shed some light as to the effects of the current economic crisis and fluctuating oil price on the future of the petrochemical market in the GCC.
Rui de Sousa highlights how the GCC, driven by government initiatives, are becoming more environmentally friendly with regards to waste disposal. However, despite the potential revenue generating opportunities associated with these practices, comprehensiveness and monitoring of policies is somewhat lacking.
Finally, given the current climate, we feature two books that we consider relatively ‘light reading’. There is enough stress in today’s workplace….by truly understanding your and your team member’s behaviours and knowing how to prevent unnecessary tensions from arising, one can create a stress free work environment. In addition, those who truly give and add value in today’s market will be the ones who succeed in the long run…it isn’t all about how much you can get! We hope you enjoy these books as much as we have!
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The Flare: Edition 3
Sunday, November 30, 2008
As the Middle East continues to drive global project Capex, the existence of nascent, evolving and developed markets and players continues to present a double edged sword of exciting new opportunities and challenges/risks for incumbent and new entrants.
In our cover story, Rui de Sousa highlights how, as a result of tight top tier contractor workloads over the past few years, Korean EPC contractors have successfully entered the market, developed business development and project execution competencies and have thus gained considerable market share despite the perceived challenges associated with working with them.
Kathleen Bury takes a look into the Iranian market and answers the questions which many of our customers have been asking us over the past few months - are there any real opportunities in Iran, and if so, where are they, how do we take advantage of them and what are the risks?
Continuing this risk theme, Ann-Marie Carbery gives us an insightful look into how projects can be executed successfully in today’s overheated market by fully understanding the various risk areas and developing early mitigation strategies.
Finally, we feature two books that have certainly helped us to operate more efficiently and effectively! The need to manage complexity within today’s business environment has become evermore pressing as we try to prioritise the tasks that really add value and develop the way we communicate it. We hope that these methodologies and tips can help you too!
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The Flare: Edition 2
Tuesday, September 30, 2008
As the GCC powers ahead with its ambitious growth plans, we are witnessing a fascinating interplay between rising costs fuelled by capacity constraints and commodity prices, and a more selective approach by contractors on which projects they elect to bid on. How these tensions are resolved may determine the shape and pace of the region’s next round of infrastructure investment.
In our cover story, Laith Amin covers the ultimate currency: crude oil! According to Laith, demand behaviour is proving less responsive to spiraling crude prices thanks to government subsidies.
Kathleen Bury reports on the sharp drop in project Capex in 2008 and its flow on effect on project award schedules. We also look at the surging uptake of wikis and blogs to drive staff productivity and retention. Continuing this theme, our Knowledge & Communities team rounds out The Flare with 5 practical, down to earth tips for using a corporate blog.
Finally, we feature two books showing how new social software tools are being used to build businessrelationships, enable innovation to flourish and create two-way communication with customers and staff. The tools and solutions offered by the authors may be the competitive edge your organisation is looking for!
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The Flare: Edition 1
Wednesday, July 30, 2008
Contax has been working with clients across the Middle East for nearly twenty-five years. In that time, we have witnessed many turns of the economic cycle. Today’s environment places a premium on those organisations able to look forward from today’s capex boom and position their organisation for profitable growth in the years ahead.
In our cover story, Laith Amin highlights the next big source of competitive advantage: Saudization! According to Laith, this new wave of legislation will be the number one driver behind the outsourcing of maintenance in the Eastern Province’s Oil and Gas business! In this brave new world, the winners will be those organisations who have the capabilities to move quickly in adopting local hires as part of a long term strategy.
Continuing the KSA theme, Shaheen Chohan reports on Contax’s recent KSA webinar. Over 100 participants from 5 time zones enjoyed a discussion of the opportunities and challenges awaiting business in KSA.
In this issue, we also put our finger on the pulse of GCC Capex commitment trends before rounding out The Flare with 5 practical tips for project due diligence.
Finally, we feature two books that Paul Eccleston found captivating reading. As we shape our response to the challenges ahead, we may find the issues and solutions offered by the two authors prove pivotal in determining the effectiveness of how well we execute our strategy.
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