Tuesday, January 22, 2008

Kite to pull ship across Atlantic

Kite to pull ship across Atlantic

The technology is aimed at cutting CO2 emissionsThe world's first commercial cargo ship partially powered by a giant kite is setting sail from Germany to Venezuela.
The designers of the MS Beluga Skysails say the computer-controlled kite, measuring 160sq m (1,722sq ft), could cut fuel consumption by as much as 20%.
They also hope the state-of-the-art kite will help reduce carbon dioxide emissions, as it tugs the ship.
Fuel burnt by ships accounts for 4% of global CO2 emissions - twice as much as the aviation industry produces.

The MS Beluga SkySails' maiden transatlantic voyage is from the northern port of Bremerhaven to Guanta in Venezuela. The ship is expected to leave the German port at 1700 local time (1600 GMT).
It's kind of back to the future
Verena Frank, Beluga Shipping
The BBC's Steve Rosenberg, on board the vessel, says the computer will enable the kite to harness the full power of the wind.
"The maiden voyage marks the beginning of the practical testing during regular shipping operations of the SkySails System," says Stephan Wrage, managing director of SkySails GmbH.
"During the next few months we will finally be able to prove that our technology works in practice and significantly reduces fuel consumption and emissions," he said on the company's website.

"We're absolutely excited," said Verena Frank, project manager at Beluga Shipping GmbH, SkySails GmbH's partner.
She told the BBC's World Today programme that the project's core concept was "using wind energy as auxiliary propulsion power and using wind as a free of charge energy".
"Nevertheless, it differs very much from traditional sailing, as we do not have any bothersome mast on deck which might be a hindrance to cargo-loading operations."
Ms Frank said the efficiency of the kite depended on wind and weather conditions.
But the advantage of the SkySails system "is that you do not need only backward winds - there can also be side winds and you can still set sail," she said.
She said the kite could be used on medium-size cargo ships, cruise liners and trawlers.

Abu Dhabi plots hydrogen future

Abu Dhabi plots hydrogen future
By Richard Black Environment correspondent

Green city planned for the desert

Enlarge ImageThe government of Abu Dhabi has announced a $15bn (£7.5bn) initiative to develop clean energy technologies.

The Gulf state describes the five-year initiative as "the most ambitious sustainability project ever launched by a government".

Components will include the world's largest hydrogen power plant.
The government has also announced plans for a "sustainable city", housing about 50,000 people, that will produce no greenhouse gases and contain no cars.
The $15bn fund, which the state hopes will lead to international joint ventures involving much more money, is being channelled through the Masdar Initiative, a company established to develop and commercialise clean energy technologies.

It shows that you can generate hydrogen without carbon release from fossil fuels
Professor Keith Guy
Powering up for hydrogen"As global demand for energy continues to expand, and as climate change becomes a real and growing concern, the time has come to look to the future," said Masdar CEO Dr Sultan Al Jaber.
"Our ability to adapt and respond to these realities will ensure that Abu Dhabi's global energy leadership as well as our own growth and development continues."

Technology bridge The portfolio of technologies eligible for funding under the Masdar Initiative is extensive, but solar energy is likely to be a major beneficiary.
The hydrogen plant, meanwhile, will link the world's currently dominant technology, fossil fuel burning, with two technologies likely to be important in a low-carbon future - carbon sequestration and hydrogen manufacture.
Hydrogen will be manufactured from natural gas by reactions involving steam, producing a mixture of hydrogen and carbon dioxide.

President Bush's administration is also pumping money into hydrogenThe CO2 can be pumped underground, either simply to store it away permanently or as a way of extracting more oil from existing wells, using the high-pressure gas to force more of the black gold to the surface.
When hydrogen is burned, it produces no CO2. Eventually hydrogen made this way could be used in vehicles, though in Abu Dhabi it will generate electricity.
"It's important because it shows that you can generate hydrogen without carbon release from fossil fuels," commented Keith Guy, an engineering consultant and professor at the UK's Bath University.

"When you look at how hydrogen could be made economically, the route that many people have been looking at, through electrolysis of water, is incredibly expensive."
The Masdar Sustainable City, another component of the Abu Dhabi government's plans which is being designed with input from the environmental group WWF, is envisaged as a self-contained car-free zone where all energy will come from renewable resources, principally solar panels to generate electricity.

Buildings will be constructed to allow air in but keep the Sun's heat out. Wind towers will ventilate homes and offices using natural convection.
The fund and the Masdar City plans were formally unveiled at the World Future Energy Summit in Abu Dhabi.

Monday, January 21, 2008

Naive comments by US Presidential Canditates on Pakistan

Naive comments by US Presidential Canditates on Pakistan

These comments did not help the war on terrorism or its allies. These Presidential hopefuls made a fool of themselves and removed all doubts about their knowledge of Pakistan or the war on terror. "Hearts and Minds" anyone ?

Saira Yamin January 16, 2008
Editor: Erik Leaver

As the race for the White House heats up, presidential candidates are using the turmoil in Pakistan to show off their foreign policy credentials. Unfortunately few of the candidates have demonstrated a clear understanding of the complexities Pakistan presents, including the political situation, nuclear safeguards, al-Qaeda, and terrorism.
Given Pakistan's significance as the only Islamic country with a robust nuclear program; contiguous borders with war plagued Afghanistan, and its historically volatile relations with nuclear armed India, the existing level of disorder in Pakistan is clearly a reason for the candidates to weigh in. Benazir Bhutto's assassination on December 27, 2007 deepened the instability, unleashing a new wave of panic both in Pakistan and abroad.
But the candidates, and in particular the Democrats, are offering the wrong solutions.
In Pakistan, once a cab driver remarked to me that there existed not one, but five Osama bin Ladens. The cab driver went on to suggest that even if one or two were killed, al-Qaeda would not become dysfunctional. The candidates should consider this wisdom, instead of offering a guns blazing strategy in Pakistan.
At the New Hampshire debate on January 5, Senators Obama and Clinton, and former Senator John Edwards were all unanimous in their eagerness to launch unilateral strikes on Pakistan if they knew the location of Osama bin Laden. Given the reliance on the kind of intelligence that President George Bush launched the Iraq War, Democratic candidates might like to think twice. The presidential candidates should also be reminded that Pakistan is a sovereign nation and unilateral strikes on Pakistan would be in violation of international law. Such a move by the United States would not bode well for its already deteriorated image as a responsible world leader.
Seeking a more nuanced position, Senator Clinton proposed at the debate to "try to get (Pakistan President Pervez Musharraf) to share the security responsibility of nuclear weapons with a delegation from the United States and, perhaps, Great Britain, so that there is some fail-safe." Before taking responsibility for Pakistani nuclear warheads, the could-be president might like to comment on the incident last year in which six U.S. nuclear warheads on cruise missiles were accidentally flown to Louisiana from North Dakota. The bombs were left unguarded on a landing strip for ten hours before anyone noticed they were missing. It might be worthwhile for the potential Commander in Chief of the armed forces to ensure that U.S. nuclear warheads do not remain vulnerable to such gaffes in future before recommending safeguards for other nations.
Republican candidates' strategies for dealing with the mayhem in Pakistan have generally been more astute, with some exceptions. Mike Huckabee's recommendation to prevent more illegal Pakistanis coming in, by building a fence along the U.S.-Mexico border, shows his lack of understanding of the issues at play. Maverick outsider Ron Paul, on the other hand, must be lauded for pointing out that extremist militancy exists because U.S. forces have invaded, occupied, and maintained military bases in Muslim countries for a long time prior to 9/11.
Among all the candidates, Senator John McCain offers the most insightful solutions, in part due to his long standing relationship with President Musharraf. He rejects the option for making unilateral strikes in Pakistan, recognizing the enormous military challenge the strategy poses, as well as the risk of alienating the people and government of Pakistan. Realizing also that confronting terrorism requires long term solutions, McCain calls for a comprehensive Pakistan policy. While McCain has not ruled out military options in dealing with terrorists, his vision outlined in Foreign Affairs, supports dealing with some of the root causes by getting children out of madrassas and into schools.
All of the candidates should know that eliminating terrorist havens in Pakistan must go hand in hand with stabilizing neighboring Afghanistan, a country which has not been accorded the priority it deserves. The Taliban and al-Qaeda were able to master the art of military maneuvers in the treacherous and cave-laden mountainous border regions of Pakistan along Afghanistan in the days of the Afghan Jihad against the Soviets. Successive U.S. administrations armed these groups, then known as the Mujahideen, to fight the Soviets. U.S. and Saudi governments provided the Pakistan government with monetary and military incentives to allow the Mujahideen theuse of Pakistani territory for refuge and training. Now, no one is possibly more at home in the territory along the long and porous borders, than al-Qaeda led militants.
Pakistan continues to be thronged by millions of refugees, who despite living in abject poverty and statelessness, refuse to go back to their country for fear of their lives. The associated costs for Pakistan have considerably undermined its fledgling economy. With relatively open borders providing a safe haven to refugees, Pakistan has suffered from narcotics and arms traffic through all the years of turbulence in Afghanistan.
As Pakistan suffers from the contagion of conflict ridden Afghanistan, its current political crisis presents a favorable playing field for terrorist groups. This is evident in the rising incidence of terrorism and suicide bombings across the country. It is imperative therefore that U.S. presidential candidates support Pakistan's return to political stability by encouraging a transition to democracy. Charting the way to Pakistan's democratic future in the short-term would include: a return to the constitution and judiciary that existed prior the imposition of emergency last year; restoration of the freedom of press and free association; release of all political prisoners jailed during recent crackdowns; and, accommodation of independent international monitors during parliamentary elections promised next month.
A critical step for any government that comes to power in Pakistan, must be to take responsibility for developing its tribal regions where militants have sought refuge. U.S. presidential candidates should seek conditions such as the growth and development of Pakistan's tribal frontiers for the flow of future aid to the country. Gradual and sustained abolition of tribal laws and feudal structures, in tandem with socio-economic growth, is key to progress in the vulnerable tribal lands.
Having said that, Pakistan should not be made a scapegoat for the lack of vision in dealing with the region as a whole. The role of great powers in the region has been detrimental to Pakistan's national security. The next U.S. president offers a chance for change. America's choice should be a President who goes beyond showboating and demonstrating who can "be the toughest" by standing behind real democracy, while seeking innovative solutions both inside Pakistan and its neighbor, Afghanistan.
Saira Yamin teaches at the Department of Defense and Strategic Studies, Quaid-e-Azam University, Islamabad. She is currently pursuing doctoral studies in Conflict Analysis and Resolution at George Mason University and is an analyst for Foreign Policy In Focus.

Benazir Bhutto : World lost a great leader and a Caring Human Being

Benaizr Bhutto : World lost a great leader and a caring human being

By SULTAN NIAZI
Benazir Bhutto, the bravest of all, more steadfast than all the men of Pakistan put together, the voice of sanity, secularism and democracy, was so shamefully silenced in Pakistan, devastating not only me and my country but the whole world.
My family's journey with the great Bhutto family started in the late 1960s. My father was a friend and dentist to Prime Minister Zulfiqar Ali Bhutto, Benazir's father. Bhutto was a regular visitor at our dental clinic and house.

In 1977, our lives changed when Gen. Zia-ul-Haq, the ruthless military dictator, took power in a coup d'etat, toppling the only democratically elected prime minister we had had in our country's history. With everyone deserting him, my brave father was one of the few who stood by Bhutto's side untill the bitter end.
I remember the last time I met Bhutto was in early 1979. I was a little boy, and he kissed me on my left cheek and gave me a hug, asking me to be brave. Bhutto was sent to the gallows on concocted charges in 1979, devastating my country and us.
Forced into exile to Britain in order the escape the constant torture and imprisonment, we, along with Benazir and her mother, found new homes in central London. During the exile years in the early 1980s in Britain, I recall Benazir as a young, brilliant and charismatic individual. She had an answer for everything. I could never win an argument with her. As you know, she was the president of the prestigious Oxford University debating society. I guess I had no chance winning an argument with her, but I tried.
In 1986, Benazir made a triumphant return to Pakistan. My mother went to greet her and was on the truck with her during her historic arrival in the city of Lahore.
A sea of humanity greeted her. Like Hercules, she was carrying the nation on her shoulders, a beacon of light after years of darkness, the lightning rod we were waiting for. My countrymen thronged to see her, hear her and be a part of history.
The historic speech she gave in Lahore, where more than 2 million people turned out to greet her and hear her speech, dawned the era of democracy in Pakistan after years of dictatorship. Even today, my countrymen thronged to hear her — a woman in a man's world.
From 1986 onward, Benazir used our house for her residence and political activities. She made men look weak and her enemies feeble, and she thrived when she was among her people. She was made of steel, her resolve unfaltering, unwavering.
We saw her father's charisma in her, her dedication to the poor, her love for her people, all so obvious for us to see. In a male-dominated Muslim country, we saw her as our savior and our leader. The five years of torture and solitary confinement could not break her resolve or belief in democracy and secularism in Pakistan.
When she spoke, we stood still, listening intently, as if under a spell, mesmerized. We wept when she wept, laughed when she laughed, smiled when she smiled, frowned when she frowned.
In 1988, elections were held, and despite the rigging, neither she nor the people of Pakistan were to be denied their destiny. It was a sight to see, because in my country women are not in the driving seat usually, and to see a reversal of roles was so enjoyable. While forming a coalition, she treated everyone with dignity and respect. Everyone and anyone, no matter how rich or poor, had access to her because she was for the people, lived for the people and eventually died for the people.
She was fulfilling her destiny and carrying the mantle of our hopes and aspirations. We were overjoyed, and our tears were unstoppable.
Dawned the day we had all fought so hard for. Restoring democracy and ending the era of tyranny and dictatorship was here at last. Benazir won the elections in 1988 and became the first female prime minister of a Muslim country.
As she exited our house for the prime minister's residence, she went to each servant in our house who had served her with undying love and affection for so many years, and thanked and hugged each one of them. She turned toward us, and we hugged, laughed, then cried as we bid her farewell.
I remember standing with my family, feeling it was the end of an era for us. We had lost so many years as a family, all the torture and emotional heartbreak we endured. But it was worth it: worth it for democracy, worth it for human rights, and worth it for the destiny of our country. And we as a family will do it again if we have to.
I console myself knowing that Benazir's spirit and message will live with us forever. We, the ordinary people, will carry on her message of love, democracy and humanity. As she said, "Democracy is the best revenge."
The sad events of 9/11 and Dec. 27, 2007, are a reminder of the dark and evil enemy we face. With resolve and conviction, we the people, all over the world, will overcome the forces of evil and tyranny.
Rest in peace, our lovely daughter of the East, rest in peace.
Dr. Sultan Niazi is an Evansville physician.

Sunday, January 20, 2008

Analysis: Pakistan's new Army Chief -Kayani is his own man

Analysis: Pakistan's new Army Chief -Kayani is his own man

Musharraf, left, handed over control of the army to Kayani in November 2007

In the aftermath of Benazir Bhutto's assassination, the debate over who will form the next Pakistani government after February's elections appears to have dissolved into semantics without dilating on the role of the army, the real arbiter of power.
Perhaps it is due to the general perception that Pervez Musharraf, the country's president and former army chief, has strengthened his position by appointing General Ashfaq Pervez Kayani as his successor-in-uniform.
However, recent events — some quite symbolic — appear to suggest otherwise.
Despite publicly wanting to continue the "war on terror", Kayani is not straining to keep up appearances with Musharraf following the president's patronising suggestion last week that they "are two of a kind".
As Imran Khan, the opposition leader and cricket legend, recently said, "nobody is anyone's man once he becomes commander-in-chief with 700,000 soldiers under his command".
Trust deficit?
That change in attitude may have started on the very day Musharraf reluctantly passed the baton to Kayani, forced by circumstances different from October 6, 2001 when Musharraf extended his own term indefinitely.
Special report
The tenure of army chief is generally three years, but many in that post stayed on beyond that period in the "nation's larger interest". Musharraf stretched that interest for nearly a decade.
Musharraf's grudging words of praise for his successor with repeated mention of how he trusted the man who had "served under me for 20 years" did not go unnoticed at the handing-over ceremony last November. The tone and tenor bordered on condescension.
A few days later, it was tellingly reinforced at the 18th annual dinner of the Pakistani American Public Affairs Committee (PAK-PAC), where Musharraf went on to say that "Kayani is my student and has worked as my subordinate. He is a man of good head and heart. I feel stronger today." However, Musharraf's action did not reflect that strength.
Even before shedding the uniform, he returned to the presidency the powers he used as army chief to impose a state of emergency.
Many pundits are betting Musharraf may come to rue his decision to continue residing in Army House, citing security issues, despite retiring from the army after 46 years of service.Not everyone is buying Musharraf's reasoning. Many belive it is a symbolic move to show he still holds sway over the only constituency he could once legitimately call his own - the military.
Talat Masood, a retired lieutenant-general and prominent defence analyst, suggests that it could be due to administrative convenience but also a refusal to part with his military legacy.
"It may be down to nostalgia with the military that prevents him from leaving that house."
Kayani declared 2008 as "Year of the Soldier" [EPA]
Kayani may not share that thought after assuming charge of the world's sixth largest army.The new army chief has taken three steps that are more than just subtle hints of his independence from the president. They speak of a person who is his own man and not "two of a kind" as Musharraf insists.
Upon taking charge last November, Kayani declared 2008 as "Year of the Soldier".
The immediate public response was one bordering on cynicism questioning the need for such a dedication against the backdrop of the army's deep involvement in politics and businesses.
However, by publicly supporting his lower cadres, the new army chief is implying that Musharraf is someone who does not.
Certainly, the families of soldiers who laid down their lives by the hundreds in a forced and complicated "war on terror" are inclined to agree.
Public image
Masood says Kayani is trying to repair the military's standing. "Kayani feels the army has suffered as a result of its political involvement and therefore, he is trying to pull it back."
Javed Ashraf Qazi, former chief of the Inter-Services Intelligence (ISI) agency and once Musharraf's senior in the army, concurs.
"There is a feeling within the army that it is too involved in politics. It wants to get out."
Kayani's second step was to instruct army commanders that they should restrict themselves to the constitutionally-ordained role (defending the country's borders) and not meet politicians or engage in politics.
It followed guarded and as yet unpublished reports that an army officer who went to meet Musharraf behind the back of his new chief was sacked.
Masood thinks the message has wider implications.
"I think he wanted to give a message to both the army and the international community that the army today is distancing itself from politics and will not be involved as it has been in the past and (that) Musharraf will be conducting himself (only) as a retired military officer … in a civilian capacity."
Last week, Kayani also replaced Major-General Waheed Arshad, Musharraf's appointed director general of the army's public relations wing only a little more than a year after he assumed that role.
The new appointee for the post, Major-General Athar Abbas, is seen as a smart choice given that apart from his track record in the forces he is also the sibling of Pakistan's best-placed trio of respected media persons.
It is not just a routine appointment, but rather a follow-up on Kayani's endeavour to create his own equation with the media.
The third step is Kayani's reported move to soon recall all officers and soldiers working in civil departments to their units.
Hamid Gul, another outspoken former intelligence chief, blames the inherent sweeping powers vested in the army chief.
"Unfortunately, the army chief has too many powers. The leadership structure is such that the corps commanders do not really speak their minds and simply go along with what their chief says."
Paradigm shift
This probably explains why Kayani is confident of engineering a paradigm shift with the same handful of corps commanders who were until two months ago lining up behind Musharraf.
Masood concludes that it is an institutional imperative.
"In the military, institutional loyalty is more important. This impression that (there is any such thing as) dual loyalty is not true. (Ultimately), it's the institutional discipline, which stays."
How much further can Musharraf hold on to power? By his own admission, in his rather aptly titled memoirs In The Line of Fire, he has used up his quota of a cat's nine lives.

Oil boom makes Middle East the biggest Construction site in the World !

Oil Boom makes Middle East the biggest Construction site in the World

A $500 billion construction site called Saudi Arabia ! Businessmen from The Gulf and Saudi Arabia have bought large chunks of companies like Sony, Citigroup, GE , Dow Chemicals etc.

RABIGH, Saudi Arabia — The King Abdullah Economic City is being championed by the Saudi monarch as a way to handle an expected population boom. An alarm bell sounded the end of the lunch break here one November afternoon, and suddenly thousands of workers — on foot, on bicycles and in buses — streamed in, seemingly from out of nowhere, and jolted this huge construction site to life.

Amid a forest of cranes, towers and beams rising from the desert, more than 38,000 workers from Pakistan, Bangladesh, China, India, Turkey and beyond have been toiling for two years in unforgiving conditions — often in temperatures exceeding 100 degrees — to complete one of the world’s largest petrochemical plants in record time.

By the end of the year, this massive city of steel at the edge of the Red Sea will take its place as a cog of globalization: plastics produced here will be used to make televisions in Japan, cellphones in China and thousands of other products to be sold in the United States and Europe. Construction costs at the plant, which spreads over eight square miles, have doubled to $10 billion because of shortages in materials and labor. The amount of steel being used is 10 times the weight of the Eiffel Tower.
“I’ve worked on many big things in my life, but I’ve never worked on anything this big,” an American project manager mused during a bus tour of the project, called Petro Rabigh, a joint venture of the state-run oil company Saudi Aramco and Sumitomo Chemical of Japan.
Size isn’t the only consideration. The project is Saudi Arabia’s boldest bet yet that this oil-rich kingdom can transform itself into an industrial powerhouse. The plant is part of a $500 billion investment program to build new cities, create millions of jobs and diversify the economy away from petroleum exports over the next two decades.
“The Saudi economy was in idle mode for 20 years,” said John Sfakianakis, the chief economist at SABB, formerly known as the Saudi British Bank, who is based in Riyadh, the Saudi capital. “Today, the feeling here is, ‘We’ve won the lottery; let’s not waste it.’ ”
The kingdom’s lofty economic goals would have been unthinkable without the surge in energy prices that has filled the coffers of oil producers. Oil prices have quadrupled since 2002 and reached $100 a barrel in New York this month.
Persian Gulf countries earned $1.5 trillion in oil revenue from 2002 to 2006, twice as much as in the previous five-year period, according to the Institute of International Finance, a global association of banks that is based in Washington. As the top exporter, Saudi Arabia has been the main beneficiary.
Despite all the recent headlines about Middle East investors bailing out troubled American banks like Citigroup, a growing share of today’s petrodollars are staying at home to finance megaprojects like Petro Rabigh, analysts say. That money is financing the biggest economic boom in a generation, helping to build not only the high-rises of Dubai, where the world’s tallest tower is going up, but also telecommunications networks, roads and universities throughout the Middle East.
Abu Dhabi is planning to spend close to $1 billion for a new museum with the help of the Louvre, in Paris. Dubai’s latest grandiose idea is to build a small-scale replica of the French city of Lyon, complete with residential housing, a museum, a culinary school and a soccer club.
In Saudi Arabia, Riyadh looks like a boom town: sprawling over 40 miles, it is teeming with shopping malls, electronics stores and luxury boutiques. But while times are good today, many Saudis realize that their country is locked in a race against time to create industries that produce more than just oil in order to keep a young and growing population employed. The kingdom, which has a population of 24.5 million, including nearly 7 million foreigners, has what one analyst called a “human time bomb.” About 40 percent of Saudis are under 15, and because the country has one of the world’s highest birth rates, the population is expected to reach nearly 40 million by 2025.
“It has been a social, and therefore a political, imperative of the Saudi government to develop the economy and to create employment opportunities,” said Timothy S. Gray, the chief executive of HSBC Saudi Arabia.
That could well mean that higher oil prices are here to stay. One paradox of modern-day Saudi Arabia is that while it seeks to reduce the importance of petroleum to its economy, it needs those exports more than ever.
TO be sure, the region’s economies are too small to absorb all the oil riches on their own. Too much money is chasing too few assets, analysts say, forcing oil producers to invest some of their revenue abroad and diversify their holdings, either through opaque state-owned investment funds or through direct private investments.

Last year, for example, a fund controlled by the government of Abu Dhabi bought a stake in Citigroup for $7.5 billion, while another run by Dubai’s ruler bought a large share in Sony, the Japanese consumer electronics giant. Sabic, a major Saudi petrochemical company, bought the plastics division of General Electric for $11.6 billion, and the Kuwait Petroleum Corporation bought half of Dow Chemical’s commodity-plastics unit for $9.5 billion.
In recent weeks, other big banks plagued by losses from the mortgage crisis, like Merrill Lynch and Morgan Stanley, have raised tens of billions of dollars from a variety of Middle Eastern and Asian funds, including ones from Kuwait or Saudi Arabia.
According to data compiled by Bloomberg News, overseas investments by Persian Gulf countries reached a record $75 billion in 2007. Arms deals, a time-worn way of recycling petrodollars, remain popular in the region; the United States is pushing for a $20 billion weapons sale to Saudi Arabia, for example. But while oil-rich states are still buying American Treasury bonds or military hardware from the West, analysts say the more significant trend is for a growing share of their investments to be pumped into local projects.
“The vision is to turn the kingdom into a major industrial power by 2020,” said Jean-François Seznec, a professor at Georgetown University who is a specialist in industrial policies in the Persian Gulf. “A billion dollars here and a billion there, and soon you’re talking about real money.”
Projects like Petro Rabigh, Mr. Seznec said, will allow Saudi Arabia to become one of the top three chemical producers in the world within a few years. Unlike Kuwait or Abu Dhabi, Saudi Arabia does not have a sovereign fund responsible for investing the country’s petroleum riches.
Ali Al-Naimi, the kingdom’s energy minister and one of the grand architects of Saudi industrial policy, summed up the country’s goals at the dedication ceremony for Petro Rabigh in 2006.
“I would like to highlight the fact that the Petro Rabigh project is part of a bigger picture,” Mr. Naimi said at the time. “This strategy includes expanding the base of the Saudi economy, diversifying national income sources, attracting international investments and reaping the direct and indirect benefits that these types of projects will accrue to the Saudi citizen.”
The trend to modernize and develop the economy is not entirely new, of course. Saudi Arabia has been trying to diversify itself for over two decades. It famously tried to make the desert bloom in the 1970s and ’80s by investing heavily in water desalinization plants and growing crops.
But a long period of low oil prices, from the mid-1980s through the 1990s, stalled much of its effort. The government still relies on petroleum exports for 90 percent of its revenue; oil sales account for half of the country’s gross domestic product.
The current level of oil prices has given the country’s industrialization strategy a new spring, allowing the government to improve its finances while investing in large infrastructure projects. The Saudi G.D.P. has doubled in the last five years. Not counting oil, economic growth has been 4 percent to 6 percent a year since 2002.
Oil has not been the only engine of growth. The country’s private sector has also thrived and now accounts for 45 percent of the economy, compared with just 20 percent about 20 years ago. Since the 1990s, the share of private Saudi money invested at home has doubled, and now represents about 20 percent of total holdings, according to SABB.
“There is a lot of money looking for investment opportunities,” said Mr. Gray at HSBC.
The financial turnaround has been spectacular. In 1999, the Saudi government’s debt amounted to 120 percent of G.D.P. That number has dropped to less than 20 percent as the government paid back its obligations and put its finances in order.
Last year, the government recorded a budget surplus of $48 billion, five times the surplus of 2003. This year, it has built its biggest budget to date around a conservative estimate of oil prices of $45 a barrel; that will almost certainly yield a substantial surplus at the end of the year.
All of that is a far cry from the 1990s, when oil averaged $20 a barrel, thanks mostly to Saudi concerns at the time to keep oil prices low.
One of the most noticeable illustrations of the industrialization push is a plan championed by King Abdullah, the 83-year-old Saudi monarch, to build six new cities throughout the country — including the King Abdullah Economic City on the western coast, near the city of Rabigh; the Knowledge Economic City, near Medina; and the Prince Abdulaziz bin Mousaed Economic City, in the north.

The intent is to create industrial centers that double as housing and commercial hubs for the country’s young and growing population. The Saudi Arabian General Investment Authority, a government agency, expects these cities to add $150 billion to the country’s G.D.P. by 2020, create one million new jobs and be home to as many as five million people.
Drawings of these new towns depict a cross of the futuristic “Blade Runner” and traditional Arabic design. But the new cities are also expected to become new industrial centers that focus on four main sectors: petrochemicals, aluminum, steel and fertilizers.
According to SABB, these cities together will have four times the geographical area of Hong Kong, three times the population of Dubai, and an economic output equal to Singapore’s. Other plans include building four refineries, two petrochemical plants and a modern graduate-level university with an endowment of $10 billion.
THE frenzied growth of the economy has had some serious downsides. Inflation has been rampant in the last year; food prices and rents have risen sharply. Traffic jams in Riyadh and other Saudi cities have become a constant affliction, while real estate values have soared and the construction sector is strained by a lack of workers.
The stock market, meanwhile, has yet to recover from its collapse two years ago. From 2000 to early 2006, the local Tadawul stock index surged from 2,000 points to a peak of 19,870, a return of almost 900 percent. But the overvalued market went into a panicky free fall that caused it to lose two-thirds of its value in a matter of months.
After being flat for most of 2007, the market has recovered in the last quarter, gaining more than 40 percent. Still, its value is only about half that of its peak two years ago.
One reason for the partial rebound was anticipation of the sale of shares in Petro Rabigh earlier this month. For the first time, Saudi investors had a chance to buy a major asset linked to Aramco. The initial public offering, for 25 percent of Petro Rabigh, raised $1.23 billion and was the largest stock sale in Saudi history. The stock is expected to begin trading at the end of the month.
The project itself is still about a year away from completion. Once in operation, it will produce 2.4 million tons of plastics a year. This venture, along with dozens of other megaprojects, will firmly anchor Saudi Arabia as one of the world’s top suppliers of chemical products as well as oil.
“Saudi Aramco has a vision of itself as Exxon Mobil,” Mr. Seznec of Georgetown said, “except much bigger.”

Thursday, January 17, 2008

Makkah 2010 : Transforming Islam's Holiest Site ! A Modern New Look of Makkah

Makkah in 2010 : Transforming Islam's Holiest Site ! As Modern new crisp look of Makkah
Massive infrastructure development includes a rail road between Makkah and
Madina :

MAKKAH, Saudi Arabia — Five times a day across the globe devout Muslims face this city in prayer, focused on a site where they believe Abraham built a mosque of God. This beautiful mosque is also the place Muslims cherish to visit alteast once their lives – a place they regard as the home of God.


A huge project is under way near the Kaa’ba, in the Grand Mosque, altering the skyline at Islam's holiest site. The Abraj al Bait Mall will bring an amusement park ride, fast food and convenient clothing stores to the neighborhood.

Now as they make the pilgrimage clothed in simple white cotton wraps, they will see something other than the startling Kaa’ba, which gravitates the Muslim world to a single spot unifying their differences. They will see something other than the stark black cube known as the Kaa’ba, which is literally the center of the Muslim world. They will also see lots of clothing stores. “Makkah will have all my favourite clothing stores and I wont have to haul them all the way from Jordan”. Pilgrims will have easy access to fast foods, coffee shops, soft drink shops that will bring more convenience to the pilgrims where the temperature rises to 110 F during the summer.

The Abraj al Bait Mall — one of the largest in Saudi Arabia, outfitted with flat-panel monitors with advertisements and announcements, neon lights, an amusement park ride, fast-food restaurants— has been built conveniently close from Islam's holiest site making the pilgrimage easier to the older devotees which make up atleast 45% of the visitors. A new hospital will be able to accommodate pilgrims who fall sick or who need medicines. This will change the way pilgrims with high blood pressure and diabetic pilgrims go for Hajj or Umrah.

Pilgrims are happy at the progress buts some of would like to keep the traditional old ancient part of the Makkah alive.

"Mecca is becoming like a modern city, it will benefit Muslims and create more jobs and will have a ripple effect all over the Muslim world," said Ali al-Ahmed, director of the Institute for Gulf Affairs in Washington, a Saudi Charity research organization. "It will have a great effect on Muslims as going to Makkah will give them a great feeling of progress and modernization. This will be a added charm. It will give Makkah a clean crisp look and validate the Sunnah about Cleanliness."

The mall, which opened a week before the annual pilgrimage, called the hajj, in December, is the first phase in a $13 billion construction boom in Mecca that promises to change how this city. Muslims are the only ones allowed into Makkah because of group of Western hooligans who showed disrespect to the holy sites.

The Abraj al Bait housing and hotel complex, a 1.5-million-square-yard development that will include a towering hotel, will change parts of this ancient city but add a beautiful clean new look.

When the project is completed in 2009, it will include the seventh tallest building in the world, its developers say, with a hospital, hotels and prayer halls. A public-announcement system pipes in prayers from the Grand Mosque across the way, and worshipers can join the masses simply by opening their draperies benefiting the old, sick and the handicapped.

In nearby Jabal Omar, they are making way to accommodate the next generation of Muslims. Muslims who are modern, progressive, educated and would want to feel proud of their holiest city. To make them proud and bring them back to the holy city there are cranes which dot the skyline with up to 130 new high-rise towers planned for the area. They is for - the next generation of Pilgrims !

"This is the end of Mecca and this will represent the new city – Makkah and not twisted spelling with pun - Mecca
," said Dr. Irfan Ahmed in London. He has formed the Islamic Heritage Foundation to try to preserve the Islamic history of Makkah, Medina, the second holiest city, and other important religious sites in Saudi Arabia. "Before, even in the days of the Ottomans, none of the buildings in Makkah were built to accommodate millions of new pilgrims. Its was about time.

Modernization of this neglected ancient city is certainly one of the motivators in the building boom. Every year, up to four million people descend on this city during the pilgrimage, while a stream continues to flow through here during the year, spending an average $2,000 to $3,000 to stay, eat and shop.

Vistors to Makkah remind investors of buying and living in a nest close to their beloved holy site.
Arab satellite television channels remind viewers that " finally you too, can have the opportunity to enjoy this blessed view” – which only a few could afford.

Muhammad al-Abboud, a real estate agent, recounts tales of Pakistani businessmen investing $15 million to buy several apartments at a time for his parents, renting and for Asaal –o- sawab.

A three-bedroom apartment here runs about $3 million, Mr. Abboud said. One directly overlooking the Grand Mosque can reach $5 million a view every Muslim would cherish.


After the development of these new communities the old, sick and the handicapped worshipers can separate themselves from the crowds, without violating the spirit of the hajj, where all stand equal before God.

"All of Makkah is a sanctuary," Mr. Abboud said. " this was needed because hundreds of pilgrims die because of the heat and it is difficult for the old to keep pace with the young and enthusiastic pilgrims. But some groups say the building boom also has religious motives. They praise the planners from the Royal family which holds great sway in Saudi Arabia, of seeking to beautify the historic spots, fearing that these sites would disappear with time if nothing is done to preserve them.

Dr. Ahmed of London has cataloged more than 300 separate antiquity sites, including cemeteries and mosques. He says with all the development and attention the house where the Prophet Muhammad lived should be converted into a museum.

"With the new clean crisp look this will be like respecting the Kaaba, respecting the house of God or the environment of the sanctuary," Sami Angawi, a Saudi architect who wants to preserve Makkah's heritage, said of the development. "This city should have been model for all of Islamic world. Its about time the Saudis did something. Muslims should be proud of this city and when they try to replicate this city it will change the entire Muslim world especially Africa.

Progress will bring thousands of jobs for Muslims – a sanctuary for devout Muslims. Muslims can live here for those who would love to emulate the life the their beloved Prophet..

More pilgrims than ever can come here, thanks to billions spent on tunnels and infrastructure to accommodate them. The city’s new markets will bring them better products and which suits their budget and style.
Once again Makkan homes and buildings that filled the area near the mosque were demolished in the 1970s to enlarge the mosque. The neighborhoods and families who lived near the mosque and welcomed pilgrims have long since moved away or into larger better homes with the compensation they have received.

Makkah has long been a commercial as well as a religious center, but increasingly Pilgrims bring their Islamic and global brands with them making them the dominant force here.

Some are critical of the project. Mr. Angawi, the Saudi architect, has led a lonely campaign within the kingdom to bring attention to the destruction of some historic sites. Dr. Ahmed has worked to lobby Asian and Arab governments to press the Saudis to stop such demolitions. And Mr. Ahmed, in Washington, has built a database of the historic spots now destroyed. But Saudi officials say they have been painstakingly preserving the Islamic artifacts they find, and operate two small museums in Mecca. In all, they say, more than $19 billion has been spent on preserving the country's Muslim heritage. Soon the largest Islamic Museum will not be in London – but In Makkah.

Developers and real estate agents, meanwhile, say the construction makes room for even more Muslims to take part in the hajj, and therefore serves the greater good.

A new rail link between Makkah and Madina via Jeddah is also under works. The Saudi Railway Organisation (SRO) has invited bids from specialised national and international companies for the 500-km Makkah-Madinah Rail Link (MMRL) project.'The project aims at providing a safe, fast, reliable and comfortable mode of transport for Umrah and Haj pilgrims travelling between the two cities and Jeddah,' said the SRO in a statement. Economists expect participation from major European, American and Japanese companies in the project, which will be implemented on a design, build, operate and transfer (DBOT) basis, said a report in Arab News.'A typical consortium bidding for the project will include a high-speed technology provider, rail operator, and a construction company as well as financial, legal and technical advisers,' the SRO said.

That suggests that the changes are far from over.

"Makkah has never been changed like it has now," Mr. Angawi said. "What you see now is only 10 percent of what's to come. What is coming will make Makkah a model city for all Muslims to cherish."