SKYLOUNGE 2017 - I

Spring/Summer 2017SKYLOUNGE ‫مجلة على العقارات وإدارة ال رثوات‬Top Real EstateOpportunities inCrete In Conversation with Ellen Hansen, Owner of Kreta Eiendom S.A. PROPERTY INVESTMENT ALTERNATIVE INVESTMENTS PRIVATE WEALTH Cyprus Why not buying land in USA ? FX - Turbulent Times Crete Citizenship by Investment: St. Lucia What’s News in Dubai ? USA ∙ Caribbean EB5 - Investor Visa Wealth AdvisoryKBA



Editor’s NoteDear Readers,We once again take you with us on our travels around the world and present toyou the most beautiful retreats. Aman Resort is well known for its exceptionalhotel & spa resorts all over the world. One of them in Utah, Amangiri, hasdefinitely caught our attention.We have Ellen Hansen from Crete presenting us her beautiful properties, thusexplaining also the Greek Residency Program.Speaking of residency programs, we will also look into the US EB5-Investor Visaand highlight opportunities which lay ahead when investing in “acres” and whynot? The “land” of opportunities, so let’s dive in…with an excursion into thegreater area of Houston/Texas.St. Lucia stays on our radar as this beautiful Caribbean Island recently opened upfor its attractive citizenship by investment program.Keeping up with the UAE - It seems there is no stopping of UAE’s fast pace in thenear future: modernisations, countless new projects, innovations etc. (includingthe appointment of the world’s first Happiness Minister), we highlight some ofthem. Uncertain times, volatile markets, Brexit and so on, Adam Cobbold fromCity Forex shows us the impact on the currency exchange market and explainshow to make the best out of it.Cosmetic doctor to the stars, Dr. Rita Rakus invited us to her prestigiousKnightsbridge Clinic. With over 25 years of experience in non-invasive cosmeticsolutions, Dr. Rita Rakus has attracted a celebrity following and earned her thetitle “London Lip Queen”.Moving through the water like a fish or feeling like James Bond on an underwatermission? It’s possible - with the latest gadget (yacht owners simply must have),it’s called “seabob”. We had a look.We hope you enjoy this issue.Yours sincerelyMarisa Z. Ramirez



Managing Editor ‫مدير التحرير‬ Marisa Zahra Ramirez ‫مشاركة الجمهور‬ Audience Development Kathrin Kostin CONTENTS Middle East Correspondent ‫الشرق الأوسط‬ Hassan Khalouf (Dubai) 10 Private Wealth: Succession Planning ∙ Family Office Julia V. Silva (Bahrain) 17 Private Wealth: Fiduciary ∙ Trust & Corporate Services 26 Foreign Currency Exchange South East Asia Correspondent ‫جنوب شرق آسيا‬ 34 Luxury Real Estate: Cyprus Budi Tahsin 50 Outlook GCC: United Arab Emirates 80 Luxury Real Estate: Crete ∙ Spain Business Development ‫تطوير الأعمال‬104 Business Aviation Kathrin Kostin119 USA: Buying Land ∙ EB5 Investor Visa Temi Abass132 Bespoke Luxury Travel150 Saint Lucia: Luxury Real Estate ∙ Citizenship by Investment Production ‫مدير الانتاج‬171 Luxury Gadgets Temi Abass188 Medical Tourism Top Destinations Art Director & Photo Editor ‫تصميم فن الصورة‬ Index Elizabeth Rodriguez Marketing & Sponsorship ‫تسويق‬ Kathrin Kostin Publisher & Founding Editor ‫الناشر والمدير العام‬ Dr. Khalid B. Amar Yakhloufi Contributors ‫المساهمين‬ Ellen Hansen (Kreta Eiendom) Severine Cosma (Comlux) Antonis Pisharas (Aristo Developers) Patric Collet (LT Switzerland) Dr. Rita Rakus (London Clinic) Antonia Torr (Howard Kennedy) Emily Mailer (Howard Kenndy) Dansi Kurban (Premier Group Texas) Richard Gaona (Comlux) Special thanks to ‫شكرا للجميع‬ Adam Cobbold (City Forex) Aman Resort (Amangiri Utah) Martin Oser (CAYAGO AG) Alexandre von Heeren (Mandaris) Jennie Heal (Supreme Auctions) Becky Kramm (Comlux) Maria Buchner (Blue Reef Estate) National Archives of UAE Boston Consulting Group Dubai International Financial Centre Caricos Published by KBA Enterprise Limited Penhurst House, Suite 11 Battersea Park SW11 3BY London United Kingdom www.kba-enterprise.com Tel. +44 (0) 208 088 1077 Fax.+44 (0) 207 101 3490 United Kingdom London / Email: [email protected] United Arab Emirates Dubai / Email: [email protected] Tel. +00971 (0) 552384116 INTERNATIONAL DISTRIBUTION US-$ 15,80 ∙ £ 10,50 ∙ € 13,50 ∙ AED 70 Main distribution across GCC countries: United Arab Emirates ∙ Kingdom of Saudi Arabia Qatar ∙ Oman ∙ Kuwait ∙ Kingdom of Bahrain & in designated Private Jet Charters en route from and to the Gulf region Every possible effort has been made to ensure that the information presented in this publication is accurate at the time of going to press and the publishers, editors, contributors and advertisers can accept no responsibility for any errors or omissions. No part of the magazine, including text, photographs, illustration, advertising layouts or other graphics may be reproduced in any way without prior written consent of KBA Enterprise Ltd. The views expressed in this magazine are not necessarily those of the publisher who accepts no responsibility for any loss incurred due to reliance on the information provided in this publication. © KBA Enterprise Ltd.





Private Wealth Growing WealthManaging Wealth Protecting Wealth

YOUR WEALTH, OUR EXPERTISEInternational Fiduciary & Private Family Office Services For discreet, personalised, trustservices, or advice on family office matters, from experienced professional advisers, contact: Opus Private Limited, PO Box 139, 9-12 The Grange, St Peter Port, Guernsey, Channel Islands, GY1 3JL T +44 1481 754700 F +44 1481 728600 [email protected]

dvertorial Howard Kennedy LLP he firm provides a wide range of services across six targeted groups: real estate, retail and leisure, financial services, TMT, sports individuals and HK One (HNW). It provides legal services combined with detailed sector knowledge to an international, corporate and personal client base. These range from national and global organisations, SME’s and owner managed businesses through to family offices, entrepreneurs and their funders and high-net worth individuals. Principal areas of work Howard Kennedy comprises of five departments: corporate and commercial, dispute resolution, employment, private client and family and real estate. Corporate & Commercial The department’s Dispute Resolution The department’s services include; services include; M&A, capital markets with a general commercial litigation, real estate dispute particular focus on venture capital trusts and resolution, media litigation, arbitration and mediation, enterprise investment schemes, AIM, corporate defamation and human rights, business crime and real estate, intellectual property, commercial regulatory and personal injury. contracts, business advisory and tax, business recovery and reconstruction, financial Private Client & Family The department’s services regulation, immigration and international include; contentious trusts and probate, tax planning, banking and finance. estate planning, establishment of trusts both in the UK and offshore, Court of Protection work, marriage and Employment The department’s services include; partnerships, divorce and break up, work and issues board level advice, discrimination and involving children. harassment, confidentiality and business protection, disciplinary and grievance issues, Real Estate The department’s services include; international workforce issues, TUPE, Tribunal planning, construction, development, commercial and High Court claims, redundancy and investment, finance, real estate disputes, business reorganisation programmes, employment occupation, plot sales and residential real estate contract preparation, whistleblowing and policy acquisition and disposals and leasehold guidance. enfranchisement. Sector Groups The firm operates six cross Clients The firm provides a full range of personal and departmental groups; real estate, retail and business services to an established client base leisure, financial services, TMT, sports comprising national and international organisations, individuals and HK One (HNW). These draw on SME and OME businesses, entrepreneurs, their funders expertise from across all the legal disciplines and high net worth individuals. Clients include: within the firm. The combined knowledge of the Ballymore Properties Limited, Galliard Homes, Melrose lawyers within these sector teams offers deep Plc, City & Docklands, Sydney & London Properties insight into the industries in which the clients Limited, Allied Irish Bank, Santander UK plc, Grange operate. This enables us to provide timely, Hotels, Mills & Boon, Pandora, Yum! and Pizza Hut. relevant and commercial advice to meet their specific needs. International Howard Kennedy is the UK member of two global networks Meritas and Lawyers Associated Howard Kennedy LLP. Worldwide (LAW). The firm has built up close working No. 1 London Bridge, relationships with the firms in these networks but it is London, Greater London not limited by them. Outside these networks the firm maintains relationships with wide range of firms that UK SE1 9BG have relevant skills that is useful to its client base. The Tel +44 (0)20 3755 6000 firm works with these firms globally and offer a central Fax +44 (0)20 3650 7000 hub for inward investment into the UK for their clients. DX 144370 Southwark 4 www.howardkennedy.com10

HK One: The legal concierge service for high net worth individualsoffering a multi-disciplinary approach drawing on the extensiveresources of Howard Kennedy dispute resolution HK One is uniquely positioned financial distress to offer you a comprehensive and employment multi-disciplinary range of services ip and data protection to help you protect, manage and grow your business and my investments investments now and to plan forreputation management the future. corporate taximmigrationThe UK’s position as a global centrefor business, as well as having oneof the highest standards of living inthe world, a thriving market andadvantageous tax regime for you asa high earner, may understandablybe attracting you to invest here.Our immigration team, workingclosely with our exclusive contactsand other teams across the firm,have extensive experience helpingclients relocate their business tothe UK and advising on the manyother issues associated with UKimmigration. 11



An approachable, professional,commercial and responsive law firmproviding excellent value and support to our clients, both domestic and international.

Emily Mailer Head of HK One sector group Emily’s background primarily relates to advising High Net Worth individuals in relation to their Wills, trusts and Estate planning, having been a member of the firm for 15 years. As an experienced private client solicitor, Emily has a Recent experiences broad practice with specific expertise in the following areas: Acting for the attorney of a high net worth individual who no longer had capacity to • Advising individuals and their families regarding make changes to her Will or make disputes concerning Wills, estates and trusts, on substantial lifetime gifts to family matters such as the validity of Wills, claims relating members – this required careful to the removal of executors or trustees, or negotiation with other family members in allegations such as breach of trust. order to make a successful application to the Court of Protection for an order to • In an ageing population, providing advice to execute a new Will and authorise families where a family member may no longer be substantial lifetime gifts for inheritance tax able to manage their affairs by reason of incapacity planning purposes. and where necessary making an application to the Court of Protection. Acting for the executors of a well-known artist in the course of both the • Proving advice to families regarding the administration of his estate and in the transmission of wealth between generations. context of claims brought by family members for reasonable financial Emily offers a bespoke service to individuals and provision from the estate. their wider family members and, when resolving disputes, takes a commercial and pragmatic view to Acting for well-known television achieve a resolution. personalities, entertainers and actors and others in the music industry in relation to Emily Mailer their Wills and estate planning, to ensure Head of HK One successful transmission of wealth between No. 1 London Bridge, generations of a family as well as London, Greater London recognising the specific requirements for these individuals, for example, their UK SE1 9BG intellectual property rights and wider Tel +44 (0)20 3755 5584 reputation management. Fax +44 (0)20 3650 693514

Antonia TorrHead of ImmigrationIf you have funds of over £2 million, you are also in a beneficial position as the UK Investor VisaScheme allows you to live in the UK and establish a business with fewer entry requirements.However, the circumstances and opportunities for Your immigration adviser can also look into theyou and your business are unique and the UK’s best method of bringing in your staff with you,immigration laws can be a complex labyrinth to helping to make the transition as seamless andnavigate. You need dedicated support and advice, stress-free as possible. If you are already locatedfocused on your particular needs and goals. in the UK, you may also require immigration advice to enable you to secure the bestWe provide you with a dedicated legal adviser who international talent to grow and develop yourwill work closely with you to determine your business. Our team can guide you through thebusiness goals, advise you of your rights and intricacies of sponsor licences, immigration visaopportunities and effectively facilitate any applications for staff, employment contracts, taxapplication process. and corporate structuring. Our objective is to support you with seamless advice from a unifiedAs well as helping you through all the practicalities team of selected advisers who are all experts inof securing entry into the UK, your adviser also their respective fields.works closely with our Private Client Team to helpyou navigate the complexities of the UK tax regime In all cases we work hard to make the process ofand ensure that your immigration options take into your relocation as successful and efficient asaccount the best tax planning strategy for you and possible, with a bespoke approach tailored toyour business. We also have an excellent network your goals and the particular needs of yourof exclusive contacts which enables us to help you business.with the many other associated issues, such asthe transfer of assets, setting up or diversifyingyour business in the UK and real estate investment. Antonia Torr Head of Immigration No. 1 London Bridge, London, Greater London UK SE1 9BG Tel +44 (0)20 3755 5835 Fax +44 (0)20 3650 6770 15

Dr. Thomas Goergen Co-founder

Swiss wide roots, worldwide networks Our clients are our first priority Legal and Tax Advice Fiduciary and Accounting Services Trusts and Companies Investment Funds and Structured FinanceBASEL ZURICH ZUG MALTAMandaris Ltd. Mandaris Ltd Mandaris Ltd. Mandaris Group (Malta) Ltd.St. Alban Anlage 46 Beethovenstrasse 49 Bahnhofstrasse 23 Forni Complex 1E, Level 24052 Basel 8002 Zurich 6300 Zug Pinto Wharf, Valletta WaterfrontSwitzerland Switzerland Switzerland Floriana, FRN 1913T. +41 61 285 17 17 T. + 41 43 344 33 55 T. +41 41 500 01 15 T. 356 2779 1900Fax + 41 61 285 17 77 Fax +4143 344 33 66 Fax +41 41 500 01 16 Fax +356 2713 2410 www.mandaris.com

Interview with Mr Alexandre von Heeren, of Mandaris AG, based in Switzerland 1. Your firm offers corporate & fiduciary-, trust services, investment funds and structured finance as well as legal and tax advice to international high net worth clients. Please tell us more about your company and what makes you so special? Alexandre von Heeren Lic. iur., LL.M. (International Mandaris is serving individuals and companies in Banking and Finance Law) Managing Partner, Chairman all aspects of asset structuring and of the Board of Directors administration, most often in the context of cross- clients benefit from our broad in-house or when needed readily available external know how. border situations. We operate out of Malta and Solutions must be well planned and continuously monitored to ensure compliance in the multiple Switzerland, with the local teams essentially different areas. working as a single cross-jurisdictional group. In 3. Many wealthy Arab clients do not want prescribed investment products but instead addition to the more classic trust and fiduciary require solutions which are tailored to their needs. How do you accommodate these services offered since 1933, we are offering the requests? set-up and administration of financial instruments Within Mandaris almost every solution is specifically tailored to the client’s needs. Every such as investment funds and securitisation. client situation is personal, every requirement is different and so are Mandaris’ answers to it. Combining the two services may often permit to Standardisation is rarely compatible with such situations. The offering of standardised solutions is achieve the best possible results. Our clients know a different business strategy for a different type of client. that they can rely on us to take care of all aspects of their asset structuring, from a technical and, mainly in case of family structures, from a personal side. We combine classic values with sustainable solutions, in anticipation of long-term developments. 2. How do you provide solutions for your clients within the increasingly complex tax landscape? Mandaris core competence is to navigate the complex international environment and offer solutions that are compliant with the relevant tax (including automatic exchange of information), legal, accounting, administrative and last, but not least family challenges. Our senior advisers are all covering a specialist area and each situation is dealt with as a team, thereby ensuring that th18

“Our clients are our first priority4. How do you maintain transparency between 6. Malta has introduced an “Individual Investoryourself and your clients ? Programme” aimed at high networth individuals looking to secure a second passport - How doesTransparency takes high priority within Mandaris this work?as transparency is the basis for reciprocal trustthat is essential for a fruitful long term The citizenship within MIIP programme is grantedrelationship. An important part of this is our to foreign individuals and families to thetransparent and foreseeable charging and development of Malta satisfying of course certaininvoicing procedure. Clients will soon also have a specific criteria. The key advantages include24/7 secured electronic access to all key access to a stable, friendly, EU country located indocuments and information with regard to their the Mediterranean and free travel to up to 160solution. countries and possible tax advantages. The application must be submitted to Identity Malta5. With a volatile market and oil prices down to a by an ‘Accredited Agent’. The procedure takesrecord level, many Arab family offices are time and the applicants should be resident intending to outsource their succession planning to Malta for 12 months before the application for aexperts abroad (offshore jurisdictions) safe- passport can be submitted. As an ‘Accreditedguarding their assets for their next generation. Agent’ Mandaris is authorized to represent clientsWhat advice (trust services) do you offer them. and guide them through the process to guarantee the application runs smoothly.The protection of assets should not be confined toa diversified asset management strategy, but also 7. What is your strategy servicing more wealthyintegrate the geographical and legal diversification Arab families from the GCC within the next 3as well as multi-generational planning. All of this is years?achievable through trusts and similar structures.In fact, the risk that materialises more often than The strategy of Mandaris goes well beyond theothers are disputes within the family itself. The next three years or a specific region. We serverisks, threats and goals must first be properly some clients for two or more generations. Theseidentified in order to be able to select the may originally have started in a specific country orappropriate legal structure and the most suitable region and over time spread or redomiciledjurisdiction. It is therefore crucial to properly elsewhere. In these cases we “travel” with ourunderstand the client’s circumstances. clients. The GCC is obviously a region with many well situated families with personal or financial interest across the world. It has always been and continues to be a very important region for Mandaris. We thank you for the interview. 19

“The consultancy firm that puts you first Private Client Services The interests of an individual or a group of individuals are at the heart of our service: legal and tax matters, inheritance planning or setting up and administering companies. Tax advice for private clients Examining all taxation issues on a national and international level constitutes an integral part of comprehensive financial planning. Our experienced specialists can show you ways to optimise both your privately owned assets and those of your companies. We think about tomorrow today, which enables us to advise you on choosing the best framework for your tax planning – not only in Switzerland, but also abroad. We help private clients from abroad to take up residence in Switzerland and negotiate tax rulings. Naturally, our services also include handling your tax returns and requests for reimbursement, checking your tax assessments and calculations, preparing objections and taking legal recourse and representing you in front of taxation and tax law authorities. Inheritance planning What you have built up can become a burden for you and your descendants unless you think thoroughly and in good time about inheritance and your legacy. Thanks to our forward-looking inheritance-planning service, you do not need to worry about a generational change. Transferring your private and business assets and dealing responsibly with your inheritance requires detailed knowledge, sensitivity and experience, especially in an international context; our specialists have been specifically trained for this. Several of them have a great deal of experience in setting up corporate structures such as foundations and British- and American- style trusts. Mandaris has a subsidiary which operates exclusively as a trustee. Legal advice for private clients Our legal experts can put a great deal of specialist knowledge in the field of asset management, matrimonial property law, inheritance law and international business law at your service. Drawing up marriage and testamentary contracts, wills and executor mandates, and dealing with the distribution of estates, Swiss and other company and contract law, fiscal and banking law are all important elements of this work. We are also happy to prepare expert opinions for you.20

“ We always get personalThe complex interactions in a globalised world should be met with a holistic approachto asset and corporate management. Mandaris has the necessary expertise and insightto do just that.Interface between private and corporate assetsA company often represents a major part of the total assets of a private individual. We can act as yourpoint of contact on all matters of investment and finance, while taking account of your privatecircumstances. We can assess your company, support you by producing feasibility studies and help youwith setting up or buying/selling a company or property. We will monitor your holdings for you and canprepare shareholder commitment contracts and other contractual material.Family officeAssets have to be cared for and organised on a daily basis, especially if some members of the familymove abroad or your family’s assets are located in more than one country Family governance and strategic planning for family members and their assets then become critical if the family’s assets are to be preserved for future generations. Our family office service spares you this demanding task. Thanks to our collective expertise and reliable contacts with well-known international specialists, we can work with you to find solutions that more than meet your needs. Our family office team delivers tailormade services under one roof, helping you to restructure, manage and safeguard your assets – thereby relieving you and your family members of this burden. Corporate Client Services For operating companies, our services encompass advice on legal and tax issues, salary administration, accounting and corporate consultancy, advice on compliance, serving on management boards andTax advice for companies providing fiduciary services.For us, taxes are not an impenetrable tangle, but a clear thread running through all our detailedplanning. By analysing all aspects of taxation – both national and international – our experiencedadvisers and internal and external experts will explore the best ways of optimising the tax situation foryour company.When choosing the best tax planning structures in Switzerland and elsewhere, we also take account ofyour future needs. We can assist foreign companies with setting up a company in Switzerland andnegotiating tax ruling. Of course, our services also include handling tax returns of all kinds and claims forreimbursement, checking your tax assessments and calculations, preparing objections and taking legalrecourse and representing you in front of taxation and tax law authorities. 21



“ Shouldering responsibility for your companyCorporate consultancy and fiduciary functionsWith our business administrators, accountancy and fiduciary experts, your finances are in safehands. They will apply their technical Knowledge and experience to organising your finance andaccounting systems (financial, operational, debtor, creditor and payroll accounting, consolidation) orother company operations as effectively and efficiently as possible. Management organisation,staffing, performance management, finance and investment matters, business appraisals andquestions of social security or VAT all come within our remit. When it comes to financial constraintsor divesting assets, we will advise and assist you. We help out by providing interim managementservices. In your business transactions, we offer our services as fiduciary owner or escrow agent. Instructed to act for corporate bodies As a result of our many years of experience and our knowledge of company law, we are familiar with the requirements for companies of all sizes and will sit on management boards in Switzerland or elsewhere. Our closeness to our clients enables us to respect the special circumstances of family- owned companies. We will also act as administrators or liquidators and play the role of mediators in achieving a successful outcome. If you are in the process of buying or selling a company, we can help you with the legal, financial and fiscal due diligence procedures.ComplianceDo you lack the capability to handle the risks resulting from legislation on compliance and duediligence? Our Compliance Team will advise you if you wish to reorganise or strengthen yourcompany’s system of controls. We handle all compliance issues for you, allowing you to keep risksunder control and get on with your job.Legal advice for companiesWe help you with setting up your company and applying for residence and work permits for you.We also represent you before the authorities. We can advise you on legal issues such as how todraw up company and shareholder commitment contracts or employment contracts for youremployees and managers, as well as expatriates.We work with your legal advisers in other countries in the complex field of international businesslaw. We support you in converting your company to a different legal entity, relocating your headoffice in Switzerland or abroad, handling mergers, restructurings and liquidations. 23

MALTA RESIDENCY & VISA PROGRAMME Launched in August 2015, the Malta Residence and Visa Programme (MRVP) is a fast and efficient way for foreign investors from non-EU countries to obtain a valid European residence permit legally. Under the Malta golden visa program, non-EU citizens can acquire a Malta residence permit promptly allowing the investor and their family to enter and/or live in Malta, as well as to travel freely to all EU Schengen Area countries including Switzerland. Once in possession of a Maltese residence permit, there is no need to apply for a Schengen Visa in order to visit EU countries such as Germany, France, Spain, Italy, Portugal, or Greece. Financial Contribution To qualify for a Malta golden visa, an investor must make a monetary contribution to the Government of €30,000. A non-refundable administrative deposit of €5,500 is due upon application submission, while the remaining amount does not need to be paid until after approval in principle. Real Estate Purchase or Rental To be eligible for the Malta residency program, an investor must rent or buy a qualifying property in the country. To qualify by buying real estate, an investor must purchase a property in Malta for at least €320,000. If the property is located in Gozo or the South of Malta, the minimum purchase amount is €270,000. To qualify by renting real estate, an investor must lease a property in Malta with a minimum annual rent of €12,000. If the property is in Gozo or the South of Malta, the minimum lease amount is €10,000 per year. Qualifying Investment The aim of the Malta Residence and Visa Programme is to attract foreign direct investment to the country in order to create jobs and wealth which will enhance the nation's standard of living. Consequently, candidates for Malta investor visas must make a qualifying investment in Malta of at least €250,000. To be eligible for the golden visa program, this investment must be made in accordance to the terms set out by Identity Malta, and must be retained for a minimum of five years. Additional Considerations In order to obtain an EU golden visa Malta, applicants must be 18 years of age. Applicants must also provide an affidavit stating that they have an annual income greater than €100,000 arising outside of Malta, or are in possession of capital of not less than €500,000. All Malta residence program candidates must also pass a stringent due diligence process, and must not have a criminal record or be involved in any criminal activity. Mandaris’ team and its affiliated partner companies have the necessary expertise and insight to advise on all aspects of the Maltese Residency and Visa Program.24





Foreign Currency Exchange

Company Portrait City Forex Managing foreign exchange risk during periods of high volatility Over the past year, currency values have the shops. There is a long way to go before fluctuated wildly against each other. It will not the trade deficit is closed but the weakening have escaped many people’s attention that of the currency is said to be helping to re- following the UK’s vote to leave the EU, the balance the economy, something the bank of pound has weakened by around 15% across England is keen on, in order to reduce the the board. For any business involved in balance of payments deficit in the UK and international trade, this kind of volatility can boost completeness. have a significant impact on profitability if not effectively managed. When it comes to conducting international business, you will be facing either a great Those importing coffee or machinery from opportunity to capitalise on an increase in overseas will frequently be quoted prices in competitiveness or worrying about how to foreign currency, but when selling compensate for the weak pound when domestically will be accepting their home delivering payments in local currency abroad. currency and this will create a dilemma. An importer will face the choice of either raising If you are based abroad, you will also face the prices and becoming uncompetitive, or dilemma of volatility. Moreover, the starting retaining prices and becoming unprofitable. In point may will already be disadvantageous. practice, most importers have made a Emerging market currencies tend to be weak, compromise between the two. especially where the US Dollar predominates as the accept currency of choice. The Exporters, may be able to avoid currency accepted way to assess how weak or strong a fluctuation risk by invoicing in their home currency is, is through looking at Purchasing currency, but there are occasions, particularly Power Parity (PPP) otherwise known as the for smaller companies with large overseas Big Mac index (note graph below). In the last clients, when they are forced to price in the year, and for the first time, commentators buyer’s currency, so that they can be easily have started talking about the pound as an assessed against international competitors. As emerging market currency for this reason. a result, UK manufacturers, domestic real estate vendors, financial services and tourism Whether it is major events such as the in the UK have all had a shot in the arm in the decision to leave the EU, or simply managing last year. medium term volatility, you need to protect the rate at which you calculated your costing UK Exports have grown 5.8% since the Brexit level or expected profits. vote, and contrary to many people’s fears the UK economy was one of the fastest growing in the OECD during 2016/17. It is widely accepted that any deterioration in investor sentiment has been offset by the weak pound, and domestic consumerism sentiment has not yet shown signs of having been too badly dented, despite slightly higher prices in28

nterview with Adam Cobbold fromCity Forex in LondonSo what can be done in order for companies torecognise, measure and manage the riskassociated with currency movements eating intotheir profits?There are simple steps and tools available in (ii) Forward Contractsorder to achieve this: This involves fixing an exchange rate (based on1. Ensure the pricing is realistic the current rate) for a purchase of a specificToo often, an importer will quote re-sale prices amount of currency on a future date. Generally,based on the exchange rate of that day itself. To only a small deposit is payable, which is then offensure that you are not already exposed to set at maturity. This is a pure protection tool,adverse currency movement, before you can since your exchange rate is fixed. It is ideal if youeven think of buying the currency, either add a have 30, 60, or 90 days invoicing terms, orbuffer for the exchange rate to your pricing (3-4% projects lasting many months. City Forex offersshould be adequate if you expect a response up to 18 month forward contracts or evenwithin a couple of weeks) or explain that you potentially longer. Bear in mind, however, thatreserve the right to requote if the actual you are obliged to carry out the purchase whenexchange rate fluctuates adversely by more than the contract date arrives (most banks and othera certain percentage by the time you receive providers will also allow you to specify a ‘window’confirmation of the order. You can see from both period of a few weeks or even months in which tothe GBP/USD and GBP/EUR graphs, that the settle, rather than a specific day, and this ispound has been trading within clearly defined known as a flex, window or time option forwardranges for much of the past year. Equipped with contract).this information decisions can be made aboutaccommodating fluctuations in the way described (iii) Foreign currency optionsabove. These provide a greater level of flexibility and a wider range of risk/reward choices. They can2. Decide on which tools to use offer a mixture of the ‘opportunity’ offered byAs soon as you, as an importer, confirm your buy spot foreign exchange (i.e., if the market movesorder in a foreign currency, you have a currency in your favour, you can take advantage) andexposure that you need to manage. You need to protection, such as offered by forward foreignwork out which products you will utilise to exchange. This mixture, of course, comes at apurchase the currency. There are three basic price, either in the form of a ‘premium’types: (appropriate, since this is a form of insurance) or in the form of a built-in penalty (such as the(i) Spot foreign exchange obligation to purchase at a less attractive rate, orThis involves purchasing currency at the current leveraged option that may force you to purchaserate, and is designed for delivery within two days. or sell more than you might normally wish to).Many companies wait until the invoice due date The selling of these products is highly regulatedand then purchase in this way, but this is a because they need to be applied in the mostmaximum risk, maximum reward strategy, rather expert way to your business model. They shouldthan adhering to any kind of risk management only be considered very carefully and with a fullstrategy, since the entire invoice amount is understanding of all terms.exposed to the risk of exchange rates movingsteadily adversely until the due date, and theresulting currency conversion being moreexpensive than originally budgeted for. 29

3. Design and implement a simple strategy If you are implementing a strategy on an invoice-by-invoice basis, then this is very Common sense might tell us that the easy, and you can probably cover even up to obvious balanced approach to risk 100% of your exposure straight away on management is to purchase half of the forward contracts, if you so wish. If you are required currency on a forward contract as not (e.g., if you are implementing a strategy soon as the exposure is confirmed (once you based on expected future sales) then you confirm your import order), and then to probably don’t want to over-commit to leave the remainder to purchase on the spot cover as yet unknown liabilities. In this market. In this way, whether the market situation, it is advisable to work from the moves up or down between invoice receipt expected minimum exposure and trade any and due date, you gain on half of the excess using a spot trade. amount. However, this approach is too simplistic because there are other variables (iii) What is my appetite for risk? that will determine the mix of products. Here are the questions that you should be If you are generally more risk tolerant, then asking yourself: weight your currency purchases towards spot, or indeed multiple forward contracts. If (i) How close is the current exchange rate to you are very risk averse, and would rather my “costing level” (the rate used to remove all currency exposure risk from your originally quote a price to your client) by contract, then cover 100% on a forward the time the order is actually confirmed? basis. If it is in your favour and very close to the (iv) Do I have a view on where exchange current exchange rate, you will probably rates are heading? want to protect more than 50% of the invoice amount straight away, by taking out If so, and if you believe your home currency a forward contract on as much as 100% for will strengthen, you can put off purchasing what you will need to pay or expect to currency on the forward market. Beware, receive. If there is a large difference in your however, that the markets are extremely favour between the two rates (i.e. you are in fickle, and it is impossible even for major no danger of losing money on the foreign banks to accurately predict future direction. exchange element of your costing) then you It is common to want to guess the future of may want to book less than 50% and watch currency, but currency markets are the most the market for opportunities to successively unpredictable of markets, and you do so at increase your cover as they arise and only your peril. enter the market if this situation changes. In this situation, you can effectively use stop- loss orders or OCO (one Cancels the Other) market orders. (ii) How much visibility do I have on my future currency exposures?30

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(v) Am I likely to receive any foreign currency that I can use to pay this invoice? If so, you can reduce your exposure, and Several foreign currency specialist offer therefore your cover, by this amount, if this type of consultative approach when you so choose. But bear in mind that you transact with them, free of charge. It is foreign currency receivables may well have also the case that the exchange rates they their own ’costing level’ that may not offer are generally more competitive than match up with your liabilities. You may also large commercial banks. Today more than not want to muddy the waters by mixing ever it is important to as much as possible contract funds in your accounting, instead control the risks posed by currency preferring to cover each exposure on a fluctuations. Currency movements over the case-by-case basis independently. Keeping past year have had enormous, and in some things separate will make future cases calamitous consequences. The reconciliation far easier. uncertain current economic and political outlook is likely to prolong this volatility on Do you really need a foreign exchange the exchange markets, so now more than exposure risk management policy? ever it is prudent to see if there is anything else you can be doing to protect yourself. If you report to anyone else, if you want to apply a certain risk approach to your Adam Cobbold, business in general, if your profit margin is Sales & Dealing Supervisor. Adam has worked in tight and a fluctuation would be significant, the FX industry for over 8 years and has built up a if the exposure itself is a significant part of high level of knowledge in international markets. your business, or if you want a level of Adam has a Bachelors degree from Coventry forecasting certainty, then yes, absolutely University and Masters degree from Essex University. you should have a clear policy that you implement every single time. Without one, you are playing an incredibly unpredictable market with your company’s funds. Where can you get assistance on this? Since most small companies are not in Adam Cobbold their bank’s list of top ten customers, it is Sales & Dealing Supervisor rare for them to receive consultation on City Forex Limited the vagaries of the foreign exchange 145 Leadenhall Street, London, market. Having someone who understands EC3V 4QT - United Kingdom your business requirements and who can Tel: +44 (0)20 7621 0090 advise not only on risk management but Mobile: +44 (0)7876 574 922 also help you time your currency DDI: +44 (0)20 3196 2185 conversions to take advantage of favourable conditions, can amount to thousands on your bottom line, and will also leave you free to concentrate on running your business.32











CyprusAt the eastern edge of the Mediterranean Sea lies the beautiful island of Cyprus.It is an island rich in culture, proudly boasting over 9,000 years of history.It is the third largest island in the Mediterranean Nicosia, located in the east of the geographic centre ofafter Sicily and Sardinia and covers an area of the island, is the capital of Cyprus and has aapproximately 9,250 square kilometres. Cyprus is population of approximately 330,000. The secondsituated in a prominent location and is the stepping largest city, Limassol, is situated in the south-west andstone between the three continents of Europe, Asia has a population of around 240,000 inhabitants.and Africa. Limassol is the principal seaport in Cyprus and is anThe abundant natural wealth of Cyprus along with its established player in the shipping industry. It is also adominant position created an attraction for many of thriving industrial centre and a popular location forhistory’s conquerors. These included the tourists. Larnaca, the third largest city has aPhoenicians, Assyrians, Franks, Venetians, Ottomans, population in the region of 195,000 and includes theBritish and many others, who throughout history all region of Ammochostos, also known as Farmagusta.stamped their mark on the island with untold Located in the south, Larnaca boasts the maindisasters and human tragedies. However, Cyprus has international airport, an International Free Trade Zonecontinually managed to retain its Greek identity. and a rapidly growing tourism industry. The smallestRoman theatres and villas, Byzantine churches and city on the west coast of Cyprus is Paphos. With amonasteries, castles of the Crusaders and Medieval population of about 92,000 inhabitants and a verycastles, Ottoman mosques and prehistoric strong tourist industry, Paphos is the location for thesettlements are all testament to the fact that Cyprus second international airport.experienced many races of people trying their Cyprus has a presidential system of government, inutmost to conquer and gain control of the island. which the President of Cyprus is elected in a secret ballot by the population for a term of five years. The House of Representatives is the legislative body and consists of 56 elected members, who also serve a five- year term. The legal system is based on English and EU law. Cyprus is a member of the United Nations, the European Union and the Eurozone, the Commonwealth and the Council of Europe.

dvertorialAristo Developers Aristo Developers is one of the largest Property Developing companies in Cyprus, as well as the largest private land owner on the island with more than 30 years of extensive experience in the construction and Real Estate sector. Aristo Developers emanates as one of the largest property developing companies on the island of Cyprus. Aristo Developers is one of the largest Property Developing companies in Cyprus, as well as the largest private land owner on the island with more than 30 years of extensive experience in the construction and Real Estate sector. The Company's professionalism and expertise combined with a wide range of tastefully designed projects, a highly professional after sales service, invaluable property management and strong commitment towards its customers, have allowed Aristo Developers to become the market leader. Since its establishment, the company has developed a plethora of projects on the island of Cyprus. Spanning over three decades, Aristo Developers is internationally-renowned for its exclusive locations and credible building techniques. Currently and with a property portfolio over fifty projects, the potential buyer is presented with an impressive range of freehold properties which include apartments, townhouses, (privatised) private residential developments, exclusive villas, retirement havens and luxurious golfing estates. In addition to its vast portfolio, Aristo Developers includes an extensive selection of plots and large-scale developments, suitable for investment purposes. Our philosophy Guided by our strong roots, principles and successful history, we continue to strive for an even more dynamic future respecting our clients, associates, community and environment. Achievements Aristo Developers’ success history is accredited worldwide. The company’s reputation for quality and reliability is endorsed by international organizations such as the NQA (National Quality Assurance / ISO 9001) and the Cyprus Chamber of Commerce and Industry. Aristo Developers is also a member of the FIABCI International Real Estate Federation and the EU Eco-Management and Audit Scheme (EMAS). In April 2007, Aristo Developers became a member of the Dolphin Capital Investors Group of Companies – the largest institutional investor in the holiday home sector in south-east Europe. Dolphin Capital Investors are listed on the AIM (Alternative Investment Market) of the London Stock Exchange. As a parent company, Aristo Developers maintains a group of subsidiary companies that support its current business operations. 39

INVESTMENT CRITERIA ANDCONDITIONS1. Cyprus EU Citizenship may beobtained through a secure propertyinvestment of €2 million, providedthe property/ies is/are residential.2. The investment can be a singleproperty or combined propertyportfolio.3. The main investment may besold after a period of three (3)years, however, the investor mustalways maintain / purchase aproperty with a value of at least€500,0004. Clean criminal record is required5. The investor’s parents areentitled to apply for CyprusCitizenship by Exceptionprovided that they have purchaseda permanent residence of at least€500,000 plus VAT. BENEFITS OF THE CYPRUS EU CITIZENSHIP PROGRAMME FAST AND SIMPLE Cyprus EU Citizenship by Investment can be obtained within 3 months NO RESIDENCE REQUIREMENTS Investors must visit Cyprus at least once every 7 years FREE MOVEMENT Citizens have the right to live, work and get an education within the European Union, Free movement of goods, services and capital, Visa-free travel to over 158 countries including the EU and Canada PROTECTION Protection by the diplomatic or consular authorities of any EU country LANGUAGE There are no language requirements NO DONATION No donation to the Cyprus Government is required RIGHT TO VOTE All European Citizens have the right to vote and stand for European Parliament Elections DUAL CITIZENSHIP No need to renounce previous nationality as dual citizenship is allowed VALID FOR LIFE Citizenship can be passed to future generations by descent ELIGIBILITY All nationalities are eligible for the programme NO TAX CONSEQUENCES No tax consequences unless one opts to become a tax resident in Cyprus

Venus Rock - Imperial Residences Villa, Golf Property Location: Venus Rock Golf Resort, Pafos Conjuring a sense of Mediterranean elegance a hamlet of opulent homes at the renowned Venus Rock Golf Resort, offer a refreshing sense of luxury, complimented by the resort's unparalleled beauty. Nestled on an elevated site, commanding sweeping coastal and golf course views, the privileged owners of these residences, will reap the rewards of world-class facilities at Europe’s largest golf-integrated spa resort. Aristo Developers, the market leader in the development and management of superior residential developments and major tourist projects across Cyprus, have combined exceptional elements of this project to create a uniquely integrated community that can evolve with the Venus Rock Golf Resort. KEY FEATURES • World-class villas which will redefine the level of quality and luxury living in Cyprus. • Nestled within the Venus Rock Resort, one of Europe's largest, golf-integrated spa resorts.• The owners of these luxurious golf villas will have access to a variety of amenities and services available within the resort. • Attention to detail with excellent, quality finishes and specifications. • Furniture and Landscaping packages included. • Exceptional golf and sea views. PRICES FROM : €2.035.000 EXCL. VAT (€2.136.750 INCL. 5% VAT*, €2.421.650 INCL. 19% VAT**)*Reduced VAT rate of 5% may be applicable subject to approval by the authorities **Normal VAT rate presently in effect in the Republic of Cyprus 41

Venus Rock - Imperial Residences Villa, Golf Property Villa, Golf Property42



V enus Rock - Imperial Residences Villa, Golf Property Villa, Golf Property44

V enus Rock - Imperial Residences Villa, Golf Property Villa, Golf Property 45

Diversified ProductAristo Developers is a pioneer in the fields of design and construction, developing diverse projectssuch as golf resorts, water parks, schools and shopping malls. Some of these include: • Venus Rock Golf Resort (www.venusrock.com) • Paphos Aphrodite Water Park (www.aphroditewaterpark.com) • International School of Paphos (www.paphosinternationalschool.com) • Kings Avenue Mall (www.kingsavenuemall.com)International DimensionWith offices in Cyprus and abroad, including a large network of professional associates fromaround the globe, Aristo Developers upholds a firm worldwide presence with an effectualpersonalized approach for its potential customers. The company maintains its own offices in thefollowing countries: Cyprus, Greece, United Kingdom, United Arab Emirates, Russia and China.Head office Dubai Mobile: +971 5 063 50865Aristo Centre ARISTO Developers LLC Office: +971 4 506 94018 Apriliou 1st Street Petros Ioannides Fax: +971 4 320 3794CY-8011 Pafos, Cyprus Head of UAE Office [email protected]. Box 60269 CY-8011 Millennium Plaza Hotel,Tel.: +357 26 841 800 Office No. 2201-01,Tel.: +357 99 21 31 21 Sheikh Zayed Road,Fax: +357 26 9 38 290 Dubai, [email protected]







‫ما الأخبار في الإمارات العربية المتحدة‬Crown Prince of Abu Dhabi Sheikh Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President Mohamed bin Zayed Al Nahyan and Prime Minister and Ruler of DubaiWhat’s news in UAE?