TED You know you’ve seen the now infamous acronym some­where before. And though to many it remains vague, those in the know react to it with enthusi­asm and shameless recognition of a near-addiction.

       As sky blue as it may sound, TED is a US-based non-profit dedicated to spreading “ideas worth sharing.” Today, an estimated half a billion individuals worldwide are familiar with the con­cept, with a particularly important pro­liferation in the Middle East, especially over the past couple of years.

       The California-born TED concept, founded by American architect Richard Saul Wurman in 1984, started as a series of conferences with experts present­ing ideas in technology, entertainment and design. But since its inception, “TED talks” evolved in both style and content, currently offering insight into all realms of life by speakers that include anyone from Bill Clinton to Bill Gates, political prisoners to behavior psychologists, international noble prize winners to local entrepreneurs.

       The core of the non-profit’s work continues to be an annual series of conferences in California, with a more recent set of chapters opened in the UK under the name TED Global. Over the decades, it has expanded through a number of TED-related events and activities that take place worldwide.

       Attending the live event costs $1000, a hefty price tag that many TED loyalists say guarantees attend­ees are wholeheartedly engaged. But in the year 2004, limited access to the phenomenon was broken as 20 years into its creation, the non-profit went virtual.

       “Once online, TED talks changed forever,” said half-British half-Italian Girogio Ungania, who has been smitten with the phenomenon since then, and who attended TED Global in the UK in 2005.

       According to him, putting the talks on the web only nurtured people’s desire to be part of the live confer­ence, regardless of its price tag, as anyone from wealthy people to house wives or students, who save up for sev­eral years, attend the gathering, said Ungania, who is executive director of Zayed University’s Media Initiative in Dubai.

First, it means great news to our inves­tors. Our mission is to serve our inves­tors and this was achieved through this exit. Our Gulf Opportunity Fund (GOF) invested $65 million in Redington in November 2008 for a 26 percent equity stake, and the sale, once finalised, will generate gross proceeds of $114.8m (including $2.1m in dividends already received) representing a gross $49.8m capital gain, net IRR of 17 percent and a 1.7 multiple of our investors’ equity investment.

      Secondly, the sale proves that we adopted the right strategy in partnering with companies with solid growth pros­pects. The sale has enabled us to realize the value created through strong organic growth over the past three years as well as the add-on acquisition which we worked with the management team to execute in November 2010, and which gave the company a 49.4 percent stake in Arena, the second largest distributor of IT prod­ucts in Turkey.

       This transaction also follows a series of profitable exits we’ve made in the West over the past 24 months. It underscores, again, the effectiveness of our value enhancement model in driving growth and profitability, and our ability to pro­duce capital gains to our investors under different market conditions.

What other exits did Investcorp make recently?

Let me put it in figures: in the past 20 months we distributed back to clients more than $1.5 billion from the success­ful exits we made.

      In the past six months alone, we ex­ited Accuity Inc, a former subsidiary of SourceMedia Inc and we arranged the highly profitable sale of W South Beach debt securities, which closed in Janu­ary 2012. Total realization proceeds to Investcorp and its clients were $412m.

Why did Investcorp’s net income fall to $5.3m in FY12 H1 as against $56.2m in FY11 H1?

You have to know that our fiscal year starts on July 1 and ends on June 30. Last year, particularly the second half, was a difficult year for hedge funds glo­bally. The drop was mainly due to the macro economic situation created by the eurozone sovereign debt crisis. No one in the world was immune from it. However, despite this worldwide situ­ation, our business operated well and we managed to distribute more than $412 million of proceeds from success­ful exits, and we raised $735 million from investors.

       Our fee-based income showed ex­cellent results such as a 14 percent in­crease from client business activities, reaching $82m, and our corporate in­vestment asset-based income grew by 90 percent to $65.4m, compared to the first half of Fiscal Year 2011.

       We have a long-term view on our hedge funds business. It has been per­forming well over the past 17 years with positive returns in all of those years ex­cept in 2008.

How do you think hedge funds will perform in 2012?

We are a listed company and I am not allowed to make any forecast. How­ever, there is substantial evidence that 2012 will continue to see significant in­stitutional funds committed globally to hedge fund investing. While hedge funds underperformed their long-term targets in 2011, they still maintain some abil­ity to generate relatively non-correlated returns, which is a major selling point at a time when virtually all other assets have become increasingly correlated.

What kind of feedback are you get­ting from your clients these days when the eurozone is struggling, and what is your advice to them?

We have witnessed during the past few years, and since the global financial crisis in 2008, a continuous commitment from investors to alternative investments. Our ability to successfully place 10 deals in the post-crisis period, since the beginning of FY10 (three deals in H1 2012 alone), is tes­tament to the appetite to such opportunities.

      Since its inception in 1982, Investcorp has focused on bringing the best invest­ment opportunities to our client base. We have acted as a bridge between Gulf inves­tors and the best opportunities in the West, which come in different shapes and sizes.

Our advice to them is always to diversify. Part of their investments should be allo­cated to alternative investments, but they need to choose the right asset manager. The latter should have deep experience in the markets he operates in. We achieved good results for our investors.

       A complementary shift is happening on the debt side, with Saudi’s issue of its first ever quasi-sovereign sukuk, or Is­lamic bond, in late Janaury. For the first time, a government entity, rather than a company, is coming to the bond market to raise funds. Saudi’s General Authority for Civil Aviation, or GACA, raised $15 billion Saudi Riyals, or $4 billion, from the sale of the sukuk. Not just a first for a government entity – this is also the big­gest sukuk sale in the kingdom to date.

       “The move is not a surprise; though Saudi Arabia is the biggest economy of the Islamic world, it lags far behind coun­tries such as Malaysia when it comes to developing Islamic finance instruments like sukuk,” said Mohamed Gouali, head of investment banking at Al Mal Capital in Dubai, who used to work at Al Rajhi Bank, the largest Islamic bank in Saudi Arabia. “Since Saudi is facing huge competition in this area, it could no longer af­ford not to act with an impacting initia­tive such as this.”

       The sukuk, which matures in 2022, was oversubscribed three times, mark­ing the thirst for such an offering by local institutions. The sukuk was only offered to residents in Saudi Arabia and was not open to foreigners. Funds will go toward the expansion of the King Abdul Aziz In­ternational Airport in Jeddah, which is the largest city after Riyadh in Saudi Arabia.

       “We see here singular ambition and commitment from the Saudi govern­ment aimed at implementing a large scale benchmark for the sukuk market and revi­talizing corporate debt issuance,” said Mr

It’s a factual déjà vu. The UAE and Qatar indices missed the upgrade bus again in December after they failed to qualify in June 2011 for MSCI’s emerging market index. The market ana­lysts’ response was mixed, but the GCC stock markets and investors jumped with excitement after some positive news emerged from Saudi Arabia.

       It was reported that Saudi Arabia was planning to open up its stock market to foreign investors. The kingdom’s Capital Market Authority, which regulates the Tad­awul stock exchange, is likely to take a final decision in the first half of this year. So, the news about MSCI and the Saudi market in December 2011 kept speculators busy for a while before everyone packed their bags and went for a year-end break.

       Coming back to MSCI, let’s examine what the index stands for and what would be the benefits for the UAE and Qatar markets.

        It is an index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market per­formance in global emerging markets. The Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 26 emerg­ing economies: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Paki­stan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.

        Emerging markets are considered rela­tively risky because they carry additional political, economic and currency risks. They certainly aren’t for those who value safety and security above all else. An in­vestor in emerging markets should be will­ing to accept volatile returns – there is a chance for large profit at the risk of large losses. An upside to emerging markets is that their performance is generally less correlated with developed markets. As such, they can play a role in diver­sifying a portfolio (and thus reducing overall risk).

We are seeing in the streets of the Arab World confirmation of the fact that au­thoritarianism is not stable. In our world, which is so connected and where people know what is going on outside of their small villages, people will insist on their freedom, and if not given a way to secure freedoms peacefully they will take them violently. I worry about what has hap­pened in the Middle East as reforms come too late. Now, instead of reforms, we have revolutions. The people in the Middle East are not going back. The Egyptians are not going back to Mubarak, the Tuni­sians are not going back to president Ben Ali. The game is over. What comes next? The first evidence is not so good. We have seen the Islamists, who were the strongest and most organized political forces, take power in the two elections that have been held. I think we’ll probably see more of this, because underneath the authoritar­ian regimes, democratic political forces were not allowed to organize. But the Islamists organized in radical mass, and now are very strong. But when people have to govern, not just talk, but actually govern, they find that there are certain con­strictions, there are certain limitations to what they can do.

      People on the streets in Egypt and Tu­nisia were seeking freedom, but also a bet­ter economic life; they were seeking jobs, they were seeking a way to get out of pov­erty. Now, if the islamist program is: “elect us and we will make your children suicide bombers and we will impose shari’a law”, that is not an answer to: how will we give you jobs?

      I believe for Islamists to keep power they will have to find ways to answer the question: How must we give you jobs? In Iraq and Kuwait, in the first rounds of elections, the Islamists stood very well, but in the second and third rounds, they didn’t do well at all. More moderate forces were elected.

      We are not powerless when all of this comes out. The challenge before the United States or Europe or Israel is to give support to the moderate forces – through economic development, through the training of civil society; it is to help channel some of the anger that is in the streets into more democratic institutions. so when we think about the future of this

We started with our very first hybrid vehicle in 2008. We launched the Lexus LS 600, and this was the very first hybrid car to come into the Middle East. Since then we’ve come a long way because at the beginning of 2011 we launched the Lexus CT200h as well. Lexus has been very strong globally in terms of hybrid technology, and we will launch more hy­brid vehicles in the UAE in coming years.

What has been the response to hybrid vehicles from this region?

The fuel is cheaper here and environmen­tally consciousness, if you will, compared to the other markets. Having said that, for Lexus there are two things that are really important. First of all, it’s just the right thing to do for Toyota Motor Corporation, and the Lexus brand is part of our pledge that we are doing things in a way that makes tomorrow better than today. The hybrid technology strategy is a part of our long-term strategy, making it a common-use technology for our customers.

For the second part, and that’s where I think the key discussion is, there is aware­ness building with our consumer base here with the market. The UAE is in the leadership position in terms of having the dialogue around what’s right for the future in terms of what should be happening in the transportation industry. At a very sen­ior level in the government we know that there is the appetite to go toward a more environmentally respectful approach. Based on those two points, we have a very positive outlook in terms of where we are going to go with the hybrid technology in the future for the UAE market.

Are there any other big players in the hybrid technology section in this region?

So far we are probably the strongest in terms of the type of technology we are providing. Lexus, by far, I would say, is the strongest in terms of our strategy with the hybrid technology, especially with the Lexus brand, is combining two very opposite extremes, which is environmen­tal impact with performance, and that’s where I think we are unique, and defi­nitely, the Lexus hybrid drive technology that we use is probably one of the most advanced in the world.

Please tell our readers a little more about hybrid technology.

There are two basic forms of hybrid vehi­cles – mild hybrids and full hybrids.

Mild hybrids are the vehicles that al­low for an electric motor supported by a unique battery to provide incremental en­ergy to the petrol engine that is running the car. So, it is a supplemental energy source.

A full hybrid actually provides the electric motor a separate energy source battery pack, which actually allows the vehicle to be driven entirely on the electric motor. So it allows the petrol engine to actually switch off, so in terms of emissions and fuel efficiency, it is by far more impactful in reducing the emis­sions. On all Lexus hybrid vehicles, for example, when you are applying the brake, the energy created by the pads and the heat that is generated is used to recharge the battery, so you never have to plug in the battery.

Where are most of these hybrid vehicles sold?

The key driver has been the North Ameri­can and European markets, led, of course, by government motivation, but also the fuel-economy ratio has become more im­portant over there and the awareness level is quite high there as well. Gradually, this is becoming a global phenomenon.

How many hybrid cars do you sell in a year?

We don’t usually publish our volumes, so I can’t talk about that, but overall, in terms of percentages, hybrid cars consti­tute a small percentage of our total sales. In the middle of 2012, we are launching a new hybrid, which is going to be phe­nomenal, and I think that is going to ac­celerate our mix of hybrids substantially.

Do you think that hybrid technology will be the future of the global auto industry?

Right now our stated objective from the manufacturer, Toyota Motor Corporation, is that this is the most feasible, accessible and affordable technology that is avail­able to reduce the impact on the envi­ronment. And, as you know, every brand is working on many different streams; you have fuel cells, ethanol, flex fuel, diesel, hybrid, electric plug-in. What to­morrow’s technology enables we don’t know, but for Lexus the future is hybrid. We are using that technology beyond the environmental story as it is actually a performance story for us.

Currently, the region’s leading retail and hospitality conglomerate is poised to exceed an annual turnover of $5 billion by 2015. The projection comes on the back of the Group’s milestone accomplishment of more than 1,000 outlets encompassing 18 million square feet of retail space across its portfolios in the Middle East and India.

      The group’s growth over the past four decades has witnessed the development of in-house brands that have emerged to become market leaders. Centrepoint, Ba­byshop, Splash, Shoe Mart, Lifestyle, Beautybay, Iconic, Emax, Home Centre, Q Home Décor, Max and Shoe Express are some of the home-grown brand names under the Group’s umbrella. In addition, Candelite, the Landmark Group’s latest retail offering, is already garnering a mar­ket positioning as the unique confection­ery and savory store in the Middle East.

       In a statement, the chairman of Land­mark Group, Micky Jagtiani, said, “We started with a single Babyshop store in Bahrain in 1973 with an initial capital of $6,000. Today, we have grown to become a major force to reckon with in the retail space. In the first two decades, we opened a steady number of six outlets. The year 1990 proved a turning point for the group when we shifted our headquarters from Bahrain to the UAE and opened our first Shoe Mart store. It was around the same time that we strategically decided to take on an aggressive growth path. Nearly 20 years later, we are indeed proud to have surpassed the 1,000-outlet milestone. We consider our accomplishments a sign that we are on the right path to achieving some of our ambitious corporate objectives.”

       Landmark Group’s development has been sustained by a structured expan-

 Post-liberation Libya has seen many military fiefdoms emerge, a disturbing trend that could lead to the country eventually being demarcated into militarized zones of influ­ence. Gunfire crackles through the nights, but it is no longer celebratory; instead, militias are settling scores between them­selves, fighting over turf, launching raids on suspected loyalists to the old regime or resisting government’s attempts to impose itself; the intense fighting simply high­lighting the army’s incapacity to deal with the challenges.

The government appointed a chief of staff and head of the airforce in January, but rival groups in the country’s East im­mediately dismissed the move as illegiti­mate. In a sign that the New Libya would be as disputed by new and old guards as it would be divided along regional­ist and tribal lines, a body naming itself the Military Council for Burka appeared. Largely composed of officers from Lib­ya’s Gaddafi-era army, it dismissed chief-of-staff designate Yousef al-Manqushi, a Misratan-born officer who grew up in Benghazi and whose background pleased these two most powerful rebel factions, appointing instead its own chief of staff, basing itself in the eastern city of Baida.

       Baida is a small town with a large his­tory: it produced the former Libyan King whose son returned to Libya in Decem­ber to attend independence anniversary celebrations and contest a position in a new Libya, and it was the birthplace of current Libyan strongman and head of the National Transitional Council Mustafa Abdel Jalil. In years past, it was known for being the hometown of former Libyan leader Muammar Gaddafi’s wife Safiah.

       Two months after the creation of an interim Libyan government that split the ministries of Defence and Interior equally between military powerhouses, Zentan and Misrata, Libya still lacks a national force capable of keeping the country together. Harassed by a small army of Western diplomats, spies and security professionals, the government is trying to eradicate the armed militias who hold strategic points in Tripoli and seek to parlay them into political influ­ence. But repeated deadlines have gone unheeded: three evacuation dates in De­cember passed unmarked with the excep­tion of the last one when interim Prime Minister Abdel Rahim el-Keib came out to state – almost apologetically – that it

      As the euphoria over Arab revolutions hangs heavy in the air, there are some who have already started counting the costs of uprisings in the region. Global advisory firm Geopolicity was the first to crunch the hard numbers. It said the popular protests in 2011 in North Africa and the Middle East – known as the Arab Spring – have cost the region more than $50 billion. Egypt, Syria and Libya paid the high­est financial price, but without a regional support program, the effects of the Arab Spring could be regressive, it said.

      However, the oil-producing na­tions that have avoided or suppressed rebellions have benefited the most. Us­ing data from the International Mon­etary Fund, the group said countries that have experienced intensive civil distur­bances or conflict during the Arab Spring are expected to lose the most in the short term.

      Libya, Syria, Egypt, Tunisia, Bahrain and Yemen have all been hit hard eco­nomically. Their costs to GDP amount to $20.56 billion, while costs to public fi­nance total $35.28 billion.

      In Yemen and Libya public expendi­tures have fallen alongside public revenues as governments collapsed. There has been a 77 percent fall in revenues in Yemen and an 84 percent fall in Libya. These figures do not take into account losses to human life, infrastructure damage and business and foreign direct investment losses.

      However, the region as a whole is ben­efiting economically from the Arab Spring. Oil-rich countries that have suppressed or avoided uprisings are set to gain the most.