An employee hand-stitches the panels of an Adidas AG "Brazuca Replica Glider" football on the production line at the Forward Sports (Pvt.) Ltd factory in Sialkot, Punjab, Pakistan. Asad Zaidi / Bloomberg
An employee hand-stitches the panels of an Adidas AG "Brazuca Replica Glider" football on the production line at the Forward Sports (Pvt.) Ltd factory in Sialkot, Punjab, Pakistan. Asad Zaidi / Bloomberg
An employee hand-stitches the panels of an Adidas AG "Brazuca Replica Glider" football on the production line at the Forward Sports (Pvt.) Ltd factory in Sialkot, Punjab, Pakistan. Asad Zaidi / Bloomberg
An employee hand-stitches the panels of an Adidas AG "Brazuca Replica Glider" football on the production line at the Forward Sports (Pvt.) Ltd factory in Sialkot, Punjab, Pakistan. Asad Zaidi / Bloomb

Pakistan plays perfect through-ball for Messi and Ronaldo at Fifa World Cup 2014


  • English
  • Arabic

Pakistan will be a big presence at next month’s Fifa World Cup in Brazil, although not because of the country’s football skills.

The nation, ranked 159th by Fifa, will not be among the 32 teams at sport’s most watched event. Yet its industry has recovered to join China as a key supplier of official adidas World Cup balls, such as those to be stroked around by stars such as Lionel Messi and Cristiano Ronaldo.

More than 3,000 “Brazuca” balls will be used at the month-long tournament starting on June 12. That is a small but symbolically important part of the millions of adidas and other brands of ball produced annually by factories such as Forward Sports in Sialkot, Pakistan’s main sports manufacturing centre. Businesses there say they have noticed a resurgence of demand amid faster economic growth and as wages have become more competitive with China. Child labour, which had led foreign companies to leave the country, has been clamped down on.

That is reflected in a sign at the Forward Sports factory gate, where workers wait in line at 8am to show their employee card. “We don’t employ people under 15,” it reads. Another sign says not to drop litter, while an open sewer flows on one side of the gate. Many of the workers are on a minimum monthly wage of 10,000 rupees (Dh370), less than the price of a top-line Brazuca ball in the UK or US.

“Now that China’s standard of living is going up day by day, their labour wage is going up day by day,” said Mohammad Younus Sony, head of the Pakistan Sports Goods Manufacturers & Exporters Association, in an interview in Sialkot. “We will have one less competitor. We have a lot of cheap labour, our products are good in price.”

Diego Maradona, Argentina’s 1986 World Cup-winning captain, recently disparaged Pakistan’s footballing credentials, saying Argentine football chiefs knew even less about the sport than the people of the south Asian country. “I’m sure people in Pakistan are good at a lot of things, but I never saw Pakistan play in the World Cup finals,” he said.

He was right about the nation’s tournament record – or lack of one – and also that it has other skills. That is shown by Pakistan’s return to supplying top-quality World Cup balls after a gap of more than 10 years.

At Forward Sports, there is a din of machinery as about 1,800 workers on dozens of assembly lines make balls in various colours, sewing patches of synthetic material together and flipping the ball inside out as stitching is done from the inner side. The ball is filled with air, inspected and put in a circular-shaped machine that improves roundness. Some workers use sewing machines, while others do it the old-fashioned way, stitching patches together using two needles. The workforce includes women wearing the traditional Pakistani long tunic and baggy pants, some displaying nail polish, and others with burqas showing just the face. Typically, employees work eight hours a day for six days a week.

Forward Sports, the country’s biggest manufacturer of match balls for adidas, makes hand-stitched, machine-made and thermo-bonded footballs for the world’s second-largest sporting goods manufacturer, based in Herzogenaurach, Germany. Thermo-bonded balls are of elite tournament quality, while the other categories are of lower standard.

Khawaja Hassan Masood, the Pakistani company’s head of new product development, estimates that his company will supply more than 2 million Brazuca balls of various grades. Most World Cup balls come from China, he said in an interview at the factory.

“Pakistan can regain much lost share of football manufacturing from China, Vietnam and Indonesia,” Mr Masood said. He added that it can raise its share of world football production, which was once 80 per cent, to 50 per cent from 18 per cent in four years. “We get an edge with our labour wages as they are cheaper than China.”

The world’s leading ball manufacturer until the 1990s, Pakistan lost business to China in 2006-09, dropping almost half its global share to 13 per cent, according to research by senior lecturer Khalid Nadvi of the University of Manchester, Peter Lund-Thomsen, associate professor at Copenhagen Business School, and others. China’s rose to 50 per cent from 35 per cent.

Adidas sold 13 million balls in a campaign based on the Jabulani ball in the 2010 World Cup and is confident it will exceed this with the Brazuca, said the company spokeswoman Silvia Raccagni. The official Brazuca match ball retails on adidas’s website at US$160, with lower-quality balls available at cheaper prices.

Adidas, sole supplier of the World Cup ball, declined to give a breakdown of geographical sourcing or details of commercial agreements. Mr Masood declined to reveal production costs or the value of the adidas contract.

Pakistan’s minimum wage of 10,000 rupees a month compares with the lowest minimum in China of 1,010 yuan (Dh594) in Anhui province last year. Overall, Chinese wages have tripled in a decade.

The International Labour Organization has established stitching centres in Pakistani villages to try to prevent under-age labour and stop children working at factories, small shops and in homes.

Sialkot boosted exports 20 per cent to a record $1.05 billion in the year to June 2013, the manufacturers and exporters’ association said. Located in the central province of Punjab, the city also produces Nike sports gloves and Slazenger field hockey sticks.

“A lot of brands have shifted to Sialkot,” said Khawar Anwar Khawaja, chief executive of Grays of Cambridge (Pakistan), a manufacturer of field hockey and cricket products who says he wants to tap the cricket ball export market. “Our exports are very tiny if you compare them to the world. We can double or triple Sialkot’s exports if the government supports us.”

Pakistan has an eager audience for European football. People put up large public screens for Champions League finals, World Cup matches and other big games, while fans wear jerseys of top clubs such as Manchester United and Real Madrid.

“Cricket has been the sport of choice for many years, but the trend has changed in the past 10 years,” said the Karachi United Football Club manager Adeel Rizki. “Regular coverage of European soccer has changed this. A lot more kids are liking football more than cricket now.”

Forward Sports’ Mr Masood isn’t a football fan, so he won’t be glued to the World Cup exploits of Messi, Ronaldo and company.

“A candy maker never has a sweet tooth for his own product,” he said.

business@thenational.ae

Follow us on Twitter @Ind_Insights

What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

You can report an incident to HR or an immediate supervisor

You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline

In criminal cases, you can contact the police for additional support

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
Everton%20Fixtures
%3Cp%3EApril%2015%20-%20Chelsea%20(A)%3Cbr%3EApril%2021%20-%20N.%20Forest%20(H)%3Cbr%3EApril%2024%20-%20Liverpool%20(H)%3Cbr%3EApril%2027%20-%20Brentford%20(H)%3Cbr%3EMay%203%20-%20Luton%20Town%20(A)%3Cbr%3EMay%2011%20-%20Sheff%20Utd%20(H)%3Cbr%3EMay%2019%20-%20Arsenal%20(A)%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
US tops drug cost charts

The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.

Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.

In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.

Some of the costliest drugs worldwide include Lipitor for high cholesterol. 

The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.

High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EKinetic%207%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Rick%20Parish%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Clean%20cooking%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self-funded%3C%2Fp%3E%0A
While you're here
The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

UAE squad

Men's draw: Victor Scvortov and Khalifa Al Hosani, (both 73 kilograms), Sergiu Toma and Mihail Marchitan (90kg), Ivan Remarenco (100kg), Ahmed Al Naqbi (60kg), Musabah Al Shamsi and Ahmed Al Hosani (66kg)

Women’s draw: Maitha Al Neyadi (57kg)

FIXTURES (all times UAE)

Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)

Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)

The specs

  Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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.”

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
HIV on the rise in the region

A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.

New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.

Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.

Access to HIV testing, treatment and care in the region is well below the global average.  

Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.

'Nightmare Alley'

Director:Guillermo del Toro

Stars:Bradley Cooper, Cate Blanchett, Rooney Mara

Rating: 3/5

Turning%20waste%20into%20fuel
%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
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