Jake Larsen, the head of music for Nokia's Middle East and Africa operation, says the region is a very interesting territory because of physical distribution.
Jake Larsen, the head of music for Nokia's Middle East and Africa operation, says the region is a very interesting territory because of physical distribution.

Online music dream is real



Residents of the Emirates received their first official word last week that the iTunes Music Store, the biggest global music retailer, might be on its way to local markets. While Apple officials were coy, saying any such talk was premature, the Telecommunications Regulatory Authority (TRA) said it was negotiating digital copyrights for content associated with the popular service. Regardless of how far along the talks are, the news got attention. Karim Sabbagh, a partner with Booz and Company, says it is a prime example of how far the regional digital media industry has come and how far it has the potential to go. Indeed, it would be remarkable if the iTunes Music Store were to open here anytime soon. Apple has taken a cautious approach to emerging markets to this point and has not even managed to roll out the service in every European country due to EU trade restrictions. Japan, Australia and New Zealand are the only countries outside of North America and Europe to have the store. More than 6 billion songs have been downloaded from the site since 2003. Still, the idea seems somehow less far-fetched looking back at the past 18 months of digital music development in the UAE. During that time the country has become the regional base of two major digital music stores, while its domestic telecommunications companies have also taken a piece of that action. The first store was GETMO Arabia, a joint venture launched in June last year between the Abu Dhabi Media Company, which owns and publishes The National, and what was then called Arvato Middle East Sales, a subsidiary of the German media giant Bertelsmann. Bertelsmann has since sold the company to Mondia, a Dubai company, and it has been renamed Arvato Mobile Middle East. That effort was followed up six months later when Nokia, the largest global seller of handsets, opened its first Nokia Music Store in the Middle East in the UAE. Together, the efforts cemented the nation's place as the regional leader of online music. Those ventures showed it is possible to secure regional rights from record labels to sell music legally online in the region, a task the TRA claims it is now working on with Apple. But a little more than a year in, the issue of whether it is possible to make money from such rights in the region remains open. The challenges that have kept music labels out of selling their digital products in the region - piracy, low broadband penetration, limited payment options and phone companies demanding a large share of transaction fees - are still evident, even if factors such as broadband penetration are rapidly improving. The question is whether the opportunities presented by a music-hungry population of which fully half is under the age of 25 are worth the risks. For Nokia, they were. The Finnish company opened its second music store in the Middle East and Africa region in the UAE in December last year and is pleased with it so far. The first store was opened in South Africa. "We're happy with the results," says Jake Larsen, Nokia's head of music for the region. "It's given us a good foothold in the region." The company does not release separate music sales figures. Nokia is the only online music store to bring the four major record labels and the Arabic-music powerhouse Rotana to regional listeners, as well as more than 2,000 independent labels. It did so largely because the global reach of its store and penetration of Nokia mobile devices gave it leverage with labels that few companies could match. With more than a billion mobile phones in the market, many of them built to play music, Nokia claims to be the largest seller of mobile music devices in the world. That has helped it reach global licensing deals such as the agreements it has with Sony, Universal, EMI and Warner Brothers. However, even when the pressure of a global pact was not pulling Nokia towards the Middle East and Africa, the opportunities to finally make money out of the region often were, Mr Larsen says. "The Middle East and Africa is very interesting territory because, in terms of physical [distribution], there wasn't a very organised market," he says. "So the labels are particularly interested in these areas because they can now monetise them, which they couldn't do before. "The whole of Africa was just a vacuum with no organised physical sales. All of it was piracy, so the idea of being able to move into this region and actually make money at it is exceptionally appealing to labels." Mr Larsen would not disclose details about the agreements Nokia makes with music labels except to say the labels and music publishers get paid for each song sold through the store. Just how much the labels get paid remains a sticking point for online stores without Nokia's leverage. GETMO Arabia has not been able to attract the full slate of major labels or Rotana, making do with Sony, Universal and an array of Indian labels and Arabic labels such as Melody Entertainment and Mazzika. The amount that some major international labels want up front for licences, on top of taking as much as 70 per cent of each transaction, is prohibitive given the realities of the Middle East market, says Scott Weeman, the general manager of GETMO Arabia. "The problem with the international labels is their sizeable advances, which put people off taking serious risks, especially in this region where you need to be entrepreneurial and flexible," he says. "It's a big barrier to entry." Arabic music labels tend to be easier to deal with as they sell rights for the recorded track and the songwriter's publishing credit at one time. While international music has to be cleared by both the record label and the music publisher, there is no payment system in place because almost no Middle East country has a performing rights organisation to collect royalties. Even without songwriting royalties, the deals driven by record labels leaves online sellers little room for manoeuvre. "If you want to give away 70 per cent of your revenues, you can get a licence," Mr Weeman says. "That makes the business quite difficult when you've got 30 per cent to play with." Despite that difficulty, the main sticking point for a retailer such as iTunes is not securing rights. Issues such as rights theft and infrastructure play a big part. "I have my doubts about publishing and licensing being an issue," he says. "It's whether iTunes sees it as a region that make sense to them, looking at piracy, looking at payment methods.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

UAE currency: the story behind the money in your pockets
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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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'Panga'

Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

Rating: 3.5/5

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Mobile phone packages comparison
Stage 2 results

Caleb Ewan (AUS) Lotto Soudal 04:18:18

Sam Bennett (IRL) Deceuninck-QuickStep 00:00:02

Arnaud Demare (FRA) Groupama-FDJ 00:00:04

4 Diego Ulissi (ITA) UAE Team Emirates

5 Rick Zabel (GER) Israel Start-Up Nation

General Classification

Caleb Ewan (AUS) Lotto Soudal 07:47:19

2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:12

3 Arnaud Demare (FRA) Groupama-FDJ 00:00:16

4 Nikolai Cherkasov (RUS) Gazprom-Rusvelo 00:00:17

5 Alexey Lutsensko (KAZ) Astana Pro Team 00:00:19

The Equaliser 2

Director Antoine Fuqua

Starring: Denzel Washington, Bill Pullman, Melissa Leo, Ashton Sanders

Three stars

Barbie
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Greta%20Gerwig%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Margot%20Robbie%2C%20Ryan%20Gosling%2C%20Will%20Ferrell%2C%20America%20Ferrera%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3Cbr%3E%3C%2Fp%3E%0A
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The 12 Syrian entities delisted by UK 

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

Company%C2%A0profile
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UAE currency: the story behind the money in your pockets