UAE: AED 15 BAHRAIN: BHD 1.500 OMAN: OMR 1.500 KUWAIT: KWD 1.200 #21/09 April 26 – May 9, 2020 BYE BYE, BROKERS? Real estate agents were earning $500m a year in commissions. But Covid-19 has left them fighting for their futures An ITP Media Gr oup P ublic ation Arabian Business / Dubai Mumbai London New York For more information IF THE BEST OF BOTH WORLDS IF ONLY there was a place that provided unparalleled access to the fast-growing Middle East, Africa and South Asia markets. IF ONLY there was a place with an internationally recognised legal and regulatory infrastructure. IF ONLY there was a place with an established ecosystem of over 24,000 professionals working across 2,200 top global companies. There is. DIFC. Set up your business in the region’s leading financial hub today. @difcdifc.aewww.arabianbusiness.comSUBSCRIBE NOW +971 4444 3000 www.itp.com/subscription 3 C OVER S T O RY Bye bye, brokers? Real estate agents were earning $500m a year in commissions. But Covid-19 has left them fighting for their futures CU LTURE Middle East braces for bleak Ramadan Muslims across the Middle East are bracing for a bleak month of Ramadan fasting as the threat of the Covid-19 pandemic lingers SPOR T Saudis ready to play ball How a multi-million dollar takeover of English Premier League outfi t Newcastle United can help forge a mutually benefi cial relationship 16 arabianbusiness#arabian businessarabianbusiness By Lubna Hamdan FIR S T WORD q Luxuries like fi tness club memberships are likely to be top of the chops list” 3024 Anil Bhoyrul Deputy Managing Director anil.bhoyrul@itp.com #21/09 April 26 – May 9, 2020 Arabian Business /Contents4 Vol. 21/09, April – May 2020 C ONTENT S 32 LIQUID AS SET S Quarantine reads chosen by editorial team From pandemics to tech giants and rugby heroes to female war journalists, here are the stories we recommend to keep you (mildly) sane during self-isolation 12 THE BIG S T O RY EXPO 2020 DUBAI FUNDS SHOULD BE USED TO BOOST EMIRATE’S ECONOMY If Expo 2020 is to be held 12 months later in 2021 then immediate funds for the world showcase should be channelled into supporting Dubai’s fight against coronavirus, expersts believe Airlines in the Middle East have announced repatriation fl ights for expats who wish to go home to their native countries 34 FIVE THINGS T O KNOW ABOUT... C OMMENT 10 LAW The Covid-19 pandemic situation is currently evolving and ensuing, and its far-reaching effects are not yet assessed fully, says Ashish Mehta THE BIG PICTURE 14 C OVID-1 9 IN E GYP T The Great Pyramids lighten up with blue light and a laser projection with the message “Stay Home” on the Giza plateau outside the Egyptian capital of CairoNOMINATIONS & TABLE SALES ARE NOW OPEN AB LE B SSES ALESSSSAS LELELEESES E ALALALALE LE LE SAS MIMINONTI NONSAT & SS O NSN N NS W NS W ANOW WOWOWWOWW NOW NNSANSATSTIOATIONSNONNNSSONNNIOOMMIN NO ON N IOONIOAT NSINONSMNS & NSAT NO OWW R OWWOWOWW EANO NSSS W NS OW & W ON TT ANO OWOW AR NNOARAR W NONOW & AR O REAREAR NONO NS NNONONOMIN M NSSNSS & NNSNANANANAT NON AMMMINMMI NO OM NAATMMOM TA WO &T NOO TATATTTTTTA OPOPWOOOOPWOWOOON &&&T OP NOP NNPEPEOPOPEOP NNN TAB OPOP N & TA WOPW OOO TAAB ELE OP ETAB OP AB E& SSSSSSESSSS ARRERERERERARREAARARAR EN EARRE TIOTIO T&&E AE SAALE LELELE TI ALSS S&&&&&ATSSATAT S TITIONSNSSSSS RE SSTIOTIONATIIN NONOM OMMMMMM NONO OMMMMOMOMOMMOMOMMMO NONOMIN MI ATNNAMIN ARAR MINMIOMOM AT AAAAAA EAA OM NMI NOMIN OMOM NO OMMINNA NONOMIN NAMINA A NA AAAAAA NANAMOMOM NONNNNNONNNNNNONONN EWW P ENRERE PWOO R OPOP SAT SALE SA IO S SS NS EAR ON PE ONNASTIONANAATATNANAS PWOP SASASSS ESELE SSAASE S&&A ELE S LELESESESE SA ES ESALES ESESES PE AATS&SATNAAT AA WWW REA M ATIOAANA A WOWOWO AAARA NA WEDNESDAY OCTOBER 21, 2020 MEDIA PARTNERSRTNEERRAERNERSPPAEDMMAAMENU PARTNEMENU PAM NERNMEEMMMTNRTAMM NA Celebrating their 16th year,rCeaeeear66trhhe the hhhtHotelier Middle EastddddltEMtr MEMasr AwardsAwAdsAwA awwawawwawaaAdard recognise the best in hospitalityptbnp tas tspityan osseppppsptyta tyat ta ypipynneosbbob www.hoteliermiddleeast.com/awardsdele i rrmiwwardsm aerlrdsdtradawdeho liet itte ecctttwww.wststsmidddw heeaww hdleewm dds/sssddomo.caw hillhSally Whittam Commercial Director Mob: +971 56 104 0567 Email: sally.whittam@itp.com Emma BarnettBmEmBBmeBammmnettrnrrBa BaBBttteeeetett Sales ManagerrSalesaMgna e Mob:MMobbobb +971 52 421 35862252177653582+66 Email:Emmail:EEl:mmai emma.barnett@itp.coman@@mmmabmae mt@nmcomemcop coppt@t@@@@eep.ccppa.baanommom Claudia de Brito Editor Tel: +971 4 444 3 692 Email: claudia.debrito@itp.com Teri DunstanTunsDtuDitr DD nstann tt nnnTTDDriieeer DDita Events Managegs Mana egeMenn s anagergaana rMEEMeevegge Tel:Tel:l::TTelTeTe +971 4 444 322744 37477 44+499273444 3224444 324442324+ 779+ il:Emailllil:Email:: teri.dunstan@itp.comensstom@ster du stdur dcosp.c@@stststtan@itptann@ tp.@it@itomomnndunuuccddddteri.dterttere iri Anthony Chandrannyahhthoannn hnAnA hondraAndAA hntthohnnA Tables Sales ExecutuveSableaS esSeTaTaaTas Ex uxecutuvevxa lelexxaeeeaaTaTaTauEes Tel:Teell:TT l:lll +971 4 444 3685144 444 4 4+36 5368544444++4 33645 Email:aEmail:iam ililmanthony.chandran@itpaa tany.cnthoraran@itp.comhandrchhnynnnhaanhanthony.chandran@itpntp.cohommmrtpdd@ththhdaamp. m Amanda StewartartandatwaartawaewwamaaaAdnAmmmmA International Sales ManageranaggenlesloteioMMMaiInIn ernationn oioeoognoneent Mob:MMM :obbo +44 7908 117 3333813131087333 3 +44 7797733387111333 Email:EEmail:lEamanda.stewart@itp.com amomco@@t@itptp cmanndppwartrdaawartmm it .cmamamanda.stemannndda@itititt@i@itpamp.ppwac.cc #HotelierAwards# o li Adra SPONSORSHIP ENQUIRIES NOMINATION ENQUIRIESEVENT ENQUIRIESBOOKING ENQUIRIES GCCINDEP TH NEWS S U B S CRIBE NOW www.itp.com/subscriptions +971 4 4443000 AD VER TISEMENT EXPER T VIEWS EXCLU SIVE INTERVIEWS PUBLISHED BY AND © 2020 ITP MEDIA GROUP FZ-LLC. 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PO Box 500024, Dubai, UAE Tel: +971 4 444 3000 Offices in KSA, UAE, UK, US, and INDIA ITP MEDIA GROUP CEO Ali Akawi MANAGING DIRECTOR Sue Holt DEPUTY MANAGING DIRECTOR Anil Bhoyrul EDITORIAL EDITOR-IN-CHIEF Rob Corder, rob.corder@itp.com EDITOR Lubna Hamdan, +971 4 444 3466, lubna.hamdan@itp.com DEPUTY EDITOR Bernd Debusmann Jr, +971 4 444 3145, bernd.debusmann@itp.com CHIEF REPORTER Gavin Gibbon, +971 4 444 3845, gavin.gibbon@itp.com HEAD OF VIDEO CONTENT Shruthi Nair, +971 4 444 3264, shruthi.nair@itp.com SUB EDITOR Edward Liamzon, +971 4 444 3474, edward.liamzon@itp.com ARABIANBUSINESS.COM EDITOR Neil Halligan, +971 4 444 3605, neil.halligan@itp.com UK EDITOR Alicia Buller INDIA EDITOR James Mathew STUDIO CREATIVE DIRECTOR Adrian Luca STUDIO MANAGER Abuzar Samo SENIOR IMAGE EDITOR Emmalyn Robles SENIOR PHOTOGRAPHERS Efraim Evidor, Adel Rashid STAFF PHOTOGRAPHERS Aasiya Jagadeesh, Ajith Narendra, Fritz John Asuro, Yuliya Petrovich, Jessica Samson PRODUCTION & DISTRIBUTION GROUP PRODUCTION & DISTRIBUTION DIRECTOR Kyle Smith PRODUCTION MANAGER Basel Al Kassem PRODUCTION COORDINATOR Manoj Mahadevan EVENTS & MARKETING DIRECTOR OF AWARDS & MARKETING Daniel Fewtrell +971 4 444 3684, Daniel Fewtrell@itp.com CIRCULATION DISTRIBUTION & WAREHOUSE MANAGER Praveen Nair CIRCULATION EXECUTIVE Loreta Regencia ADVERTISING GROUP COMMERCIAL DIRECTOR Joe Chidiac, +971 4 444 3121, joe.chidiac@itp.com HEAD OF SALES – AGENCIES Mario Saaiby, +971 4 444 3592, mario.saaiby@itp.com SALES MANAGER Dima Mousseli, +971 4 444 3589, dima.mousseli@itp.com DIGITAL GROUP COMMERCIAL DIRECTOR Joe Chidiac, +971 4 444 3121, joe.chidiac@itp.com HEAD OF SALES – AGENCIES Mario Saaiby, +971 4 444 3592, mario.saaiby@itp.com ITP GROUP CEO Ali Akawi CFO Toby Jay Spencer-Davies CORPORATE WEBSITE itp.com CIRCULATION CUSTOMER SERVICE +971 4 444 3000 WEB arabianbusiness.com8 Vol. 21/09, April – May 2020 Will anyone ever visit a gym again? The Covid-19 crisis has crippled the $100bn global health and fi tness industry. Will it ever recover? equipment that has been used by endless people is likely to mean a large chunk of us decide to chuck away our gym membership for good. The fitness app market was already estimated to be worth $2bn last year – that figure is likely to have doubled in the last two months. This will have huge implications for the industry – not to mention the thousands of personal trainers who face bleak futures. Barry’s Bootcamp, which now has over 70 locations worldwide including here in the UAE, was, according to Bloomberg last year, talking to investors about a potential sale. The price tag? $700m. What is it worth now? Maybe half that? Then again, Barry’s maybe a few of the lucky ones that maintain customer loyalty given its unique offering. (I actually have a friend who is genuinely addicted to Barry’s Bootcamp. She’s probably a gibbering wreck right now). What about Fitness First Middle East, part of the Landmark Group? It has grown from 15 clubs to more than 60 across 51 locations in six countries including the UAE, Bahrain, Jordan, Saudi Arabia and Kuwait. Membership had grown in excess of 12.5 percent in the last 12 months, and its impressive CEO George Flooks was arguably sitting on top of one of the most exciting parts of the Landmark Group empire. When the lockdown is over, he will be watching anxiously how many of his customers come back. Uncertain future In late February, just before the seriousness of the pandemic became clear, Flooks was asked by Arabian Business what he would do if he could run the country for a single day. He replied: “Ban sugar, ban fizzy drinks, ban Coca-Cola, ban Pepsi Cola.” Little did he realise his own product would soon be banned. I hope I am wrong about all this. I have many good friends who work in the industry, they are decent hard-working people staring at an uncertain future. But I fear I am right because one thing the pandemic is doing is changing consumer spending behaviour forever. Luxuries like health and fitness club memberships are likely to be top of the chops list. CONFESSION TIME. THE NIKE Training app, which I downloaded at the start of the lockdown, has a special “Ronaldo voiceover” on some of its fitness programmes. And it’s brilliant, just brilliant. Every now and again, my hero gives me superb motivational advice like “Come on champ, you can do it!” or “Champ, don’t give up!” It’s so, so good, I sometimes start to believe Ronaldo is here, in my front room. And I don’t want to let him down, so I try even harder than ever. Give up? No! That’s not what champs like me are about. Which leads me nicely to the subject of chumps: right now, the world’s $100bn health and fitness market, which has known nothing but staggering growth in recent years, is on the brink of collapse. The lockdown has resulted in a total closure of most of the world’s health and fitness clubs – nearly 50,000 in the USA alone. Here in the UAE, there are an estimated 800 clubs with over half a million members. That’s a massive 6 percent of the UAE population that has a gym membership of some sort. The numbers in KSA, especially for female gyms, have also been rising fast. Doors shut Unfortunately, health and fitness clubs are likely to be amongst the last businesses to reopen. Question is, will anyone still walk through their doors again? Okay, I might be the only person foolish enough to believe Ronaldo is in my front room, but like so many others, I have signed up to at least one of the 250,000 fitness apps on the market. Job insecurity and fear of handling gym Q THE PANDEMIC IS CHANGING CONSUMER SPENDING BEHAVIOUR FOREVER. LUXURIES LIKE FITNESS CLUB MEMBERSHIPS ARE LIKELY TO BE TOP OF THE CHOPS LIST” Q RIGHT NOW, THE WORLD’S $100 BILLION HEALTH AND FITNESS MARKET, WHICH HAS KNOWN NOTHING BUT STAGGERING GROWTH IN RECENT YEARS, IS ON THE BRINK OF COLLAPSE.” u Fitness Last Gym chains may face closures as a result of Covid-19 C OMMENT / ANIL BHOYRUL 50,000 The number of health and fi tness clubs that have closed in the US since the pandemic C OMM ENNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT //////////////////////////////////////////////////////////////////////////////////////////////////// ANGOLD SPONSORSPLATINUM SPONSOR FOR SPONSORSHIP ENQUIRIES Anup Nagpurkar Group Sales Manager +971 4 444 3373 + 971 52895 0931 anup.nagpurkar@itp.com FOR NOMINATION ENQUIRIES Tom Oxtoby Editor +971 4 444 3419 tom.oxtoby@itp.com FOR EVENT ENQUIRIES Teri Dunstan Events Manager +971 4 444 3227 teri.dunstan@itp.com FOR TABLE BOOKING ENQUIRIES Anthony Chandran Table Sales Executive +971 4 444 3865 anthony.chandran@itp.com Visit www.mepmiddleeast.com/awards for more information or contact one of the team today SUBMIT YOUR NOMINATIONS TODAY Wednesday 30th September 2020 The MEP Middle East Awards are an opportunity to highlight the excellence in MEP design and installation underpinning those iconic projects contributing to the evolving construction landscape in the Middle East. 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