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Fastive Fun at the Radisson SAS

The American Business Council-Kuwait marked the end of 2005 with its annual Christmas party at the Radisson SAS Hotel on December 17.

Upon walking into the festively decorated function room, the seasonal feel of the evening was immediately established for all attendees, as the adults were given Christmas Carol booklets, and their children a pouch full of candy. These welcoming gestures set an appropriate tone for an evening that was characterized by generosity and cheer.

The five person choir for the evening consisting of Hedy Memendec, Jemima Jocelyn, Smitha Mathew, Deepa Hendriques and Lisa Schrier did much to enhance the festive spirit of the occasion and were warmly received by the audience for their efforts. Another musical highlight was provided by Hedy Memendec who played an exquisite piano solo whilst the diners enjoyed their meal.

Top billing on an occasion like this went, as it has to of course, to Santa Claus whose arrival sent shivers of anticipation through an expectant crowd of children of all ages. Sitting in their time—honoured place on the knee of the busy geriatric, the smiling youngsters received a gift each. Before departing for his wintry home, Santa called on three more special people to occupy his patella-pereh: ABC's Chairman, Mr. John Hohol ick, its Executive Director, Kim Campbell, and its Executive Assistant Meera Ibrahim, all of whom were rewarded for being especially good boys and girls that year.

Generosity in the form of individual and corporate sponsorship of the evening's events was recognized by John Hoholick when he thanked those concerned for their support. The corporate sponsors who provided the evening's raffle prizes were Bader Sultan & Bros. Co.; Refreshment Trading Company; Al Hozaimi Group; Marina Hotel; Radisson SAS Hotel; MTC; PWC and Al-Bahar & Bardawil. Mr. Hoholick also expressed his and the ABC's gratitude to Toby Switzer, Emad Al Zaben, Jeff Flanagan, Edward Cars and Minda Hedges for their sponsorship of the choir dinner.

A wonderful evening was concluded with rousing renditions of Frosty the Snowman and Jingle Bells that sealed the occasion's festive mood and sent everyone home happy.

Kuwait Laws Declared Non-Taxing

Income tax avoidance is one of the main incentives for expatriates who choose to come to live in Kuwait. Yet, even though most individuals manage to avoid its burdens, it would be wrong to suppose that this is the case for everyone, as was lucidly explained by Mr. Farooq Ladha, a Tax Partner at Ernst and Young, in his presentation to the American Business Council's February meeting at the Crowne Plaza Hotel. Tax laws have in fact been in place in Kuwait since their establishment in principle by an Emiri decree of 1955; the passing of Law 23 in 1961 formalized their foundation.

Mr. Ladha began by outlining the types of company that are subject to tax in Kuwait. These range from non-Kuwaiti corporate entities that have been incorporated outside Kuwait to companies operating through an agent. Franchises and foreign shareholders in mixed companies incorporated in Kuwait are also liable to tax.

Having outlined who is liable to pay. Mr. Ladha then explained what things can be taxed. These include the buying and selling of property (but not just the buying of it), sales of goods and services, the letting of property and the operating of any manufacturing, industrial or commercial enterprise in Kuwait. Basically, all income earned from operations within Kuwait and from off-shore work connected with onshore operations is taxable, unless the company is protected by one of the many tax treaties that Kuwait has with a number of countries.

Companies can, however, limit their tax liabilities by declaring salaries and insurance premiums paid outside Kuwait, the payment of an agent's commission (up to 3% of revenue), Head Office overheads and lease rentals. Once these have been factored in, companies are then charged according to the amount of profit that they have made, up to a maximum of 55% on taxable income of KD375, 000 ($1 .300, 000).

Mr. Ladha then went on to describe the processes that are operated by the Department of Income Tax (DIT). Having inspected a company's books and records, the D1T will make its assessment of liability. Should there be any objections to the final assessment amount; companies have the right to appeal. To ensure compliance with the tax processes, the DIT has been empowered by two specific Acts, Ministerial Order 44 of 1985 and Ministerial Order 8 of 2004.

The more recent changes in Kuwait's tax laws and practices were Mr. Ladha's penultimate focus for the evening. Chief amongst these is the introduction of the Direct Foreign Capital Investment Law (DPCJL) which offers a range of benefits for potential foreign investors including a 10 year tax holiday for their share of profit in a project. Foreign nationals also enjoy full or partial exemption from customs duties and other government dues for approved projects.

To conclude, Mr. Ladha outlined some proposed tax reforms, such as the possible reduction of tax rates to a band between 15 and 20%. Income tax on individuals such as entrepreneurs and on anyone who earns in excess of KD3O, 000 is also likely. Sighs of relief were breathed by most of those seated in the room.

Mr. Ladha's presentation was followed by two five minute speeches, the first by Mr. Alan Tadayon of Leaders Enterprise who outlined the nature of his company's work in Kuwait. In the second speech, Mr. Cal Jungqvist, the President of the Overseas Security Advisory Council, briefed members on the prevailing security situation in Kuwait.

To close the evening, Kuwait Airways gave away three return tickets to a variety of destinations in a free raffle draw that the company had generously provided.

CBK Analyses Gulf Economic Trends

The current state of GCC financial markets and the range of business opportunities now open to the banking sector were the central themes of a Commercial Bank of Kuwait (CBK) presentation on March 18 at the Movenpick Hotel. The presentation was made jointly by Mr. Fawaz Alayyar, a Fund Manager from the Investment Department, and Ms. ElhamY. Mafhouz CBK ?s Head of International Banking and Acting General Manager.

In reviewing the performance of and outlook for GCC financial markets, Mr. Alayyar identified current economic trends. The governments in the region continue to enjoy healthy budget surpluses and the economies of all member states are flush with liquidity, largely on the back of high oil prices. Opportunities for investment have also increased markedly with a significant increase in listed companies. In 2005, this was clearly demonstrated by a 90% growth in the value of CCC markets.

This growth has been achieved despite the ongoing concerns about stability in the region and the possibility of terrorist attacks. Interest rates that have been favorable for so long are also a potential problem. In the first quarter of 2006 though, there have been mixed trends. Despite major economic growth, stocks have been hit by high selling pressure, largely because investors have been liquidating share assets to prepare for upcoming IPOs. Thus, even though liquidity in the market has been affected, the combination of new issues and high capital expansion will improve the situation.

In her part of the presentation, Ms. Mahfouz opened by giving an overview of Kuwait?s current political and economic status. She pointed out that as one of the GCC?s more liberal states, Kuwait offers the assurance of some stability, particularly as the country takes steps towards even greater democratization. With the world?s fourth largest oil reserves at its disposal, the country has a solid basis for future development especially now that the price of oil has reached record levels. Income from oil has been largely responsible for the government?s strong net asset position.

Ms. Mahfouz then concentrated on the banking sector in which there has been continued strong performance in 2005. This has been driven by a combination of economic growth, favorable interest rates and the strong growth of fee based income. Kuwait?s five national banks now have consolidated assets of $66.5bn.

To conclude her talk, Ms. Mahfouz focused on CBK?s profile and outlined aspects for its development in a market place that has been made even more competitive by the introduction of four foreign banks. She pointed out that, as well as seeking to maximize shareholder value by demonstrating excellence in leadership and innovation, CBK is committed to developing corporate citizenship by actively participating in the development and improvement of the State of Kuwait.

In outlining the bank?s development strategy, Ms. Mahfouz identified CBK?s intention to consolidate its position as a leading retail and corporate bank by offering a new range of products and services to cater for new growth opportunities and to focus on new areas such as private banking, Project finance and corporate finance. Looking further afield, CBK has obtained permission from the Central Bank of Iraq to establish a branch in the Kurdish area of northern Iraq, and it intends to further develop trade and customer links with both lraq and Saudi Arabia.

The American Business Council-Kuwait held its April General Meeting in the Ritz Hotel. Salmiya. The keynote speaker for the evening was Dr. Waledd Aldahi a Consultant in Endocrinology and Diabetes at Mubaral Alkabeer Hospital, who gave a detailed and fascinating presentation, entitled Understanding Diabetes.

Getting on Board

The United States Embassy was the venue for the May meeting of the American Business Council-Kuwait. The main speaker for the evening was the United States? Ambassador, Mr. Richard LeBaron, and the main item of business was the election of six members of the ABC-K?s Board of Directors.

Opening the meeting, ABC Chairman, Mr. John Hoholick, outlined the format for the meeting and explained that the evening?s election would determine which six of the nine candidates would serve on the Board of Directors for the year 2006/2007. All nine candidates were then afforded the opportunity to make a short presentation about themselves and their reasons for wishing to serve on the Board.

Mr. Hoholick then invited Mr. Erik Hunt, the Commercial Attaché at the United States? Embassy, to address the meeting. Having briefly described the nature of his and his organization?s work in Kuwait, Mr. Hunt emphasized the importance of the evening?s election, congratulated outgoing and incoming Board members, and said how much he was looking forward to working alongside the Board to consolidate and develop trade and business links with Kuwait.

Similar sentiments were expressed by the United States? Ambassador, Mr. Richard LeBaron, in the preamble to his incisive speech on market access and economic outreach. Having done so, Mr. LeBaron then went on to outline some of the main priorities for the development of effective and equitable trading partnerships between U.S. and Kuwaiti businesses.

Whilst recognizing some of the ways in which Kuwait has moved towards creating the appropriate environment for freer trade, Mr. LeBaron said that the country still had much to do to enhance its status as a member of the World Trade Organization. He was particularly critical of the continuing abuse of intellectual property rights and of the state of the country?s tax laws, both of which, he argued, require urgent attention to ensure that the country adheres to agreed WTO standards. Mr. LeBaron also identified more widespread privatization, the reduction of bureaucratic burdens and a greater commitment to the improvement of educational opportunities as priorities.

In the remainder of his address, Mr. LeBaron turned his attention to the achievements of the ABC-K and identified a number of ways in which it could help effect the types of change that he had outlined. Chief amongst ABC-K?s achievernents, he argued, was its commitment to outreach programs in iraq.

Doing Business with the U.S. Military

The practices and procedures associated with doing business with the United States' military were the foci of the presentation given jointly by Lieutenant Colonel (LTC) David Pershing and Captain (CPT) Melinda Demott at ABC-K's June General Meeting, which was held at the Radisson SAS hotel.

Using guidelines published by the Army Contracting Agency (ACA) as a main reference point, LTC Pershing and CPT Demott outlined some of the key features of how to develop a business relationship with the United States military.

In that document, there are detailed guidelines on the specifics of this type of business arrangement, along with some sound advice on the principles which govern the sort of relationship that an accepted trading company can expect.

As is the case in any business relationship, LTC Pershing explained, success is achieved by knowing and responding to the needs of your customer, and through delivering a product or service at a fair price.

Those general principles aside, there are some more specific things that have to be borne in mind when dealing with the Army, or any US government agency for that matter. Chief amongst them, perhaps, is the stipulation that government procurement personnel are required to use competition to the maximum practical extent.

Both speakers also referred to other general information about how to establish such working relationships. Much of this is available online at a number of websites.

The ACA's home page at aca.saalt.army.mil offers the most pertinent guidance and links to other relevant sites.

It was also pointed out that any company that wishes to help supply the Army should first consult the Army contracting Agency Vendor Guide. Following this, potential contractors are advised to browse the Army Single Face to Industry (ASFI) website. Before being granted any contract, businesses are subject to a rigorous verification process. Evidence of proper certification and a profile of the company and its past performance are closely scrutinized.

The audience was also reminded about some of the basic requirements for U.S. and non U.S. companies to begin work with the U.S. Army. All businesses, - individuals and government entities must have a valid and active DUNS (Dun and Bradstreet) number and all companies must obtain a Contractor and Government Entity (CAGE) code.

U.S. and non U.S. companies also have separate requirements to fulfill. U.S. firms have to register with the Central Contract Registration (CCR) Data Base and they must provide a tax identification number.

Non U.S. companies arc required to register as a NATO Contractor and Government Entity (NCAGE) so that they can be given an NCAGE code. They must also get a value added tax exemption number.

After the presentation LTC Pershing and CPT Demott fielded a number of questions from ABC-K members. Anyone who wishes to find out more procedural information might find the following websites useful. The locations of Dun and Bradstreet office locations can be found at: www.dnb.com. Information pertaining to Central Contracting Registration is available at www.ccr.gov

Investing in People

The work of the Kuwait Fund for Arab Economic Development (KFAED), particularly in the support of young Kuwaiti professionals in the private sector, was (the subject of the presentation given jointly by Jean-Pierre Zacaropoulos, the General Manager of Fluor Kuwait and John Grandia the company's Project Manager at the American Business Council- Kuwait's September General Meeting, which was held at the Crowne Plaza Hotel, Farwaniya.

Before the main presentation. however, the audience was welcomed back by ABC-K's Chairman, John Hoholick, who made a series of announcements, c hiefly pertaining to administrative matters such as the launch of the new website (www.abckw.org), and the need for a new Executive Director. Details about forthcoming events such as the ABC-K Trade Show and its golf tournament, and the terms and conditions of an array of membership benefits ? such as the publication of the RTI Shopping Guide and use of the Embassy Gift Shop ? were also announced.

In his introduction to the presentation, Mr. Zarcopolus outlined in some detail the history and development of the KFAED. Founded in 196 1 by the late Emir, Sheikh Jaber Al-Ahmed Al Sabah, when he held the post of Minister For Financial and Economic Affairs, the Kuwait Fund has made significant contributions to the development of developing nations, not just Arab ones, across the world. Through its generous economic support, KFAED has helped transform the economic progress of some of the world's poorest countries, largely through its contributions of carefully targeted loans and grants.

In 2002, the KFAED altered its mandate in an attempt to encourage young, well-qualified Kuwaitis to work in the private sector. It was this development that was the focus of Mr. John Grandia's section of the presentation.

Broadly speaking, the KFAED's program is designed to find highly-motivated and academically capable graduates, young people who can be trained in a range of business environments and industrial sectors. Selection of the candidates is based upon their fulfilling a rigorous set of criteria, and monitoring of their performance is carefully and professionally managed.

The program is structured around four clear stages, st arting with an admissions procedure that demands consistently high grades at University and excellent references that attest to the candidates' conduct and diligence. The need for them to be able to adapt to the demands of a range of cultures is also scrutinized.

Following their selection, the candidates have to complete three lengthier phases. In the first of these, they have to work in teams to complete a range of testing assignments whilst under strict time pressure. Completion of the Phase involves their presentation of their study objectives to representatives of companies in the private sector.

During the six months of Phase Two, the interns are provided with carefully chosen work placements in European or American firms where they are given training, heft)rc returning to Kuwait for the final Phase, their three month stint with a private sector company. Throughout these intensive training periods, the intern is bound to the Fund by a contract, one that provides generous financial support.

For Mr. Grandia, the benefits of the scheme are considerable. During its involvement in the scheme, FLUOR has trained a number of individuals and has offered employment to those who have impressed. Being able to pick and choose from a carefully selected batch of trainees has meant that the company has been able to select already proven hard-workers. The scheme has also ensured that the Kuwaiti government has begun to create a pool of expert local employees, individuals who can effectively do jobs that have been traditionally given to expatriate workers.

Making the Right Connection

Presentation Matters

Christmas Festivity

April General Meeting

ABC-K Welcomes Adnan Al-Bahar and Highlights Upcoming Tradeshow

The American Business Council of Kuwait held its May general meeting at the Crowne Plaza Hotel on April 25, 2005. Chairman of the Board, John Cobb, opened the meeting by introducing Mr. Hani Kafafi, General Manager of Crowne Plaza Kuwait, who gave a brief presentation about the Intercontinental Hotel Group.

He was followed by the ABC-K Executive Director, Kimberley Campbell, who addressed upcoming ABC-K events including the Board of Directors election, member volunteer opportunities, and the objectives of the upcoming ABC-K Tradeshow.

Jaidaa Shennawy, Public Relations Manager for the Crowne Plaza, discussed the ?Buy American? Tradeshow that would promote American products and services provided by both Kuwaiti and American companies.

She announced that the main sponsors of the event were American General Trading and Contracting Company (AGT) and the Arab Times and the co-sponsors were Kuwait Reconstruction House (KRH), Holiday Inn, and Tejari.

The keynote speaker was Mr. Adnan Al-Bahar who gave an insightful presentation about the long-term economic and financial outlook for Kuwait, the Gulf, and the greater Middle East. Mr. Al-Bahar explained that Kuwait was a democratic country which meant that decisions had to be debated in order to make sure that each perspective is heard. As a result, democratic decisions take more time than those made by a central leader who commands that a particular policy be followed. He suggested that Kuwait was going through democratic growing pains which some of the other Gulf countries had not experienced yet.

The members in attendance were extremely interested in Mr. Adnan's assessment for Kuwait's future development and were anticipating a very successful ABC-K trade show.

ABC-K May General Meeting Hosted by Ambassador Richard Lebaron

The American Business Council-Kuwait May General Meeting was hosted by HE Richard LeBaron, United States Ambassador to Kuwait. Over 150 members and guests came to the meeting and enjoyed discussing business issues around the Embassy gardens. Each member registered to vote for the Board of Director's elections to be held later in the evening.

The meeting was called to order by Board of Directors Chairman, John Cobb, who began the meeting by greeting everyone and noting that the last three United States ambassadors to Kuwait had been members of the American Business Council ? Kuwait. Mr. Cobb pointed out the strong relationship between the Embassy and ABC-K, particularly under Ambassador LeBaron's tenure thus far.

Peter Alois, Senior Commercial Officer of the United States Embassy Kuwait, greeted guests and introduced the Commercial Section staff members who he explained were dedicated to helping American business people who are either operating in Kuwait or who want to come to Kuwait.

In his keynote message, Ambassador LeBaron encouraged the American Business Council of Kuwait by expressing that the organization was on the right track with the recent changes that it was making. He stated that he was impressed with the functions and activities that ABC-K had been involved in over the past few months.

He also applauded the work that Kuwait had done since the threat from the north was no longer a major security concern. He highlighted that Kuwait was working toward more transparency and was beginning to work toward making itself a business-friendly country. He said that Kuwait was continuing to work on fair investment and tax laws. He implored the American business community to continue to have dialogues with business and commercial organizations in Kuwait and that the two countries could put their ideas together and make things happen. He indicated that the embassy would give its support to enhance the interactions between the two communities.

Ambassador LeBaron expressed the importance of having more cultural and student exchanges between the two countries to help build an even stronger cultural bond between them. He stated that education is extremely important and that he wanted to see more Kuwaiti students go to the United States to study.

On another note, the ambassador pointed out that the plight of the Bangladeshi cleaning company workers was just the tip of the iceberg of the treatment of foreign laborers in Kuwait and that the United States was encouraging the Kuwaiti government to abide by the International Labor Organization's standards for treating workers. He also recognized that for many American companies in Kuwait, the labor subcontractors were somewhat removed from the day-to-day work of American business people, yet he stated that American businesses needed to pay attention to the laborers and how they were being treated and paid. The Americans should expect high standards to be met.

Ambassador LeBaron spoke of, ?the significance of Kuwait as a key ally to the United States. This administration has chosen a path for Middle East development and the US interests will be served by a steady influx of democracy in the region. Kuwait concluded that women should have full political rights and the new environment developing within the country points to a plan for long-term security and stability.?

He also highlighted the importance of the economic front in Kuwait. He explained, ?Conversation continues regarding economic reform although the progress has been slow. Taxation, investment laws, labor laws, intellectual property protection, and the development of a Trade and Investment Framework Agreement are at the top of the list for progress in Kuwait.?

Ambassador LeBaron explained that while growth in Kuwait has been over 15% for two years consecutively, it has been rather impetuous development. As a result, there needs to be more discussion about security and economy from a long-term perspective.

Later in the evening, the elections for the new ABC-K board members took place. The candidates introduced themselves to the membership and spoke about their potential role in the future of ABC-K. Members voted and ballots were submitted as the meeting drew to a close. ABC-K appreciated the ambassador's words and is now looking forward to a bright future with the newly elected leadership.

June General Meeting

The ABC-K June General Meeting was held at the S.S. Dannah restaurant. Outgoing ABC-K Board Chairman, John Cobb, turned over the chairmanship to John Hoholick who commended John Cobb for his dedication to ABC-K as Chairman of the Board for four years. He then welcomed the membership and congratulated the new ABC-K board members. He also acknowledged the Crowne Plaza Kuwait public relations and design teams for their outstanding work on the "Buy American" Tradeshow.

Begining the business meeting, the first five-minute speaker Mr. Alvaro Barbi of Foster Wheeler briefed the attendees about the company operations and advancements in the oil and petrochemical industry. He explained that the company has a track record of global success in the world market and highlighted the most recent developments in Kuwait.

Nawaid Aussaf, the second five-minute speaker from Neo-Technology Company, explained that his company provided products and services for network security solutions. Neo-Tech also provides software development that is focused on customer requirements ranging from web-based to windows-based applications.

John Hoholick introduced the keynote speaker of the evening, Lieutenant Colonel John Hess from the United States Army Contracting Command SWA-Kuwait. Lieutenant Colonel Hess gave the membership an assessment of the current needs of the Army and practical information on the process for participating in supporting American soldiers through contracting. He pointed out that the Army had substantial requirements to support the needs of the soldiers and the mission of Operation Iraqi Freedom. The Army needs a wide array of products and services from transportation, laundry, food and water to accommodations.

Lieutenant Colonel Hess also noted the large contracts that have been awarded recently. He stated that doing business with the Army could be quite a profitable venture.

Gary Templin, a civilian member of Lieutenant Colonel John Hess' staff, followed by giving a clear and detailed presentation on the process of doing business with the United States Army.

Second Lieutenant Carlos Sigcho discussed the Team Vendor Pay Operation with the U.S. Army. He explained how a company supporting our nation's War on Terrorism would receive timely and accurate payments with unequaled service and support.

After the presentations, Lieutenant Colonel Hess fielded questions from the audience. Throughout the evening, he continued to answer questions and discuss the needs of the Army with many businesspeople who were providing or who wanted to provide products and services to the United States Army.

American Independence Day Celebration July 4th on July 1st

The American Business Council ? Kuwait held its annual Fourth of July event at Kempinski Julai?a Resort. Members and guests arrived in the morn i ig to enjoy a full day of outdoor and indoor activities. Each guest received refreshing cold tropical drinks throughout the day to keep them refreshed between activities. Participants of the event enjoyed swimming in the three?ticred swimming 1)001 dial resembled a lush, idyllic tropical island with a cascading waterfall.

The adventurous visitors went out into the glittering Arabian Gulf on jet skis or found l.heir way up onto an ocean water trampoline. Some sat under beach umbrellas and cabanas while others rested tinder the palm trees enjoying the warm summer breeze.

Later in the afternoon some people vcnt into the coolness of the Underground? to play indoor arcade games, pool, video games, and air hockey. Others worked out in the fitness center with personal trainers available with their expertise for the ABC-K group. Young children enjoyed watching videos, reading, doing arts and crafts. and playing in the sand while being supervised by Kempinski?s professional recreation staff.

Afer an active day, the Kempinski staff served typical July 4th barbeque fare including steaks, chicken. and hamburgers cooked on large open grills These were complemented by a selection of tasty salads, vegetables, and deserts that would be the envy of any backyard American harbequc.

As the day was waning, Meera Ibrahirn, ABC- K Executive Assistant, conducted raffles and a host of outdoor beach games and competitions including sack races, relays, three-legged races, and wild games of beach volleyball.

After enjoying a beautiful red sunset, the group settled by the tropical gazebo to enjoy cool drinks and each other?s company. Overall the day helped develop new friendships, strengthen old ones, and created an atmosphere that seemed almost to stretch to the shores of our lovely United States.

October 2005 ABC-K General Meeting

The ABC-K October general meeting convened at the Palms Beach Hotel. Johnnie Johnson, Vice Chairman of the Board of Directors, presided over the meeting. He introduced new Corporate members Fluor Corporation, Leaders Enterprises, Oxford Learning Center, and Al Ahlea Circle Cleaning Company.

The five minute speaker for the evening was Colonel Chris Campbell (USAF. Ret) of Kuwait Reconstruction House (KR H) and Secretary of the ABC-K Board of Directors. He explained the range of services that KRH offers its clients and the company?s plans for expansion. The KRH core lines of business include its much-respected Logistics Support Services. The company has also been growing its commercial, construction, and real estate lines in recent years and has recently broadened its scope into international agency operations.

Presentation with perspective on possible future goals of the ABC-K. Drawing from his over thirty years of service to American businesses around the world through the United States Department of Commerce and Foreign Commercial Service, he encouraged attendees to aggressively pursue new opportunities and to not be shackled to old business models or old methods.

After having worked with seven American Chamber's of Commerce and one American Business Council worldwide, he noted the important role that these organizations have in the international business community. He explained that any American company wanting to do business in Kuwait should make the offices of the Foreign Commercial Service and the ABCK two of its highest priority stops upon arrival to get input and guidance. Because of the wide lobbying and advocacy, brainstorming ideas and initiating key governmental visits and aiding in trade promotion for rebuilding Iraq. However, he did maintain that in certain areas ABC-K had an edge over the commercial service and should not deem working together was always necessary. The future is bright for ABC-K and American business in general in the State of Kuwait.

Mr. Alois highlighted some key issues that he encouraged the ABC-K membership to stay abreast of engaged in. In particular, he stated that the Offset Program, Kuwaitization, and corporate taxation are issues that the Kuwait government should know that the ABC-K is paying attention to. He noted that the Kuwaiti government is discussing reforming its tax laws which could mean that American companies in Kuwait could possibly be required to pay back taxes on profits from as far back as 1973 and even as far back as 1955. Furthermore, in trying to privatize some of its government entities, the Kuwaiti government is encouraging its people to move into the private sector. Private sector Kuwaiti and American companies wilt be confronted more and more with bringing Kuwaitis into their work forces. Therefore, American business people should be able to understand the goats and challenges of being a part of this objective.

Kuwait's pursuit of an American/Kuwait Free Trade Agreement is certainly of interest to many Kuwaiti companies, Mr. Atois noted, and ABC- K should express its support of the FTA. The areas that an FTA would address are key areas that American businesses are confronted with consistently in Kuwait such as inefficiency and lack of transparency. The issues of promoting intellectual property rights, sanctioning workers rights, reducing customs duties, and improving investment and market access are of key importance to American companies in Kuwait. He emphasized that all of the reforms that A Free Trade agreement implementation would necessitate are good for business. Understanding and coping with key cultural anti business differences from the United States to Kuwait will be crucial to success.

Mr.Alois asked where American businesses in Kuwait stood on these issues. He argued that for ABC-K to be effective, the American business community should realize that ABC-K is its organization and, therefore, must support it, unite under the ABC- K umbrella, target key issues, come together with an agreement on its positions. package them, and present them. ABC-K needs to go to the American and Kuwaiti governments, the American Chamber of Commerce Headquarters and ask them what they are doing about these key concerns and make a clear statement on the standpoint of American businesses in Kuwait. Mr. Alois suggested that the organization define its positions and write them in a clear two to three page report. Further, he recommended that ABC-K document the amount of money American businesses invest in Kuwait, how many people they employ, how many jobs they create and use the strength of the group as leverage rather than speak only as an individual or as one company.

Finally, Mi: Alois urged the American Business Council ? Kuwait to help itself become more effective by educating its members and the American business community and by increasing its visibility. He said that the organization should continue lobbying and that the Door Knock program in April and May was a good delivery system. He said that the ABC-K should continue programs such as its visit to the Kentucky World Trade Center in September, its participation in the Re-build Iraq Tradeshow in Amman, Jordan, and its undertaking its own tradeshow in April.

In closing his presentation, Mr. Alois, encouraged the ABC-K membership to continue to pursue the wide variety of business opportunities in Kuwait.

After Mr. Alois closed his keynote address, Johnnie Johnson awarded him with a certificate of appreciation and thanked him for his devoted and respected support of the American Business Council ? Kuwait. To top off the evening, the ABC-K membership enjoyed the Palms buffet meal and further networked with one another enjoying the genial and relaxed atmosphere.

The Greening of Kuwait

The role of research and development in the commercialization and conversation of the environment were the key themes of a fascinating presentation made by Dr. Samira Omar of the Kuwait Institute for Scientific Research at the American Business Council?s November meeting, which was held in the Hilton Kuwait Resort.

Broadly speaking, KISR?s objectives are to advance scientific and applied research as related specifically to industry, energy, natural resources and food resources whilst serving the objectives of the economic, technological and scientific development of Kuwait.

Also central to Dr. Omar?s presentation was the idea that economic development need not entail an environmental cost; the two are not necessarily mutually exclusive terms. This is clearly set out in one of the strategic objectives related to food and biological sciences, which identifies the development of technologies required for the conservation and sustainable utilization of renewable natural resources. The enrichment and development of food production in certain strategic products, and the establishment of model production projects based upon research results and experiences gained in collaboration with the private sector, are the other two main priorities.

To meet these objectives, KISR is involved in wide- ranging research projects. These include aspects of animal production, soil irrigation schemes, the remediation and rehabilitation of contaminated soils and the evaluation and sustainability of fisheries resources.

This whole-hearted commitment to such schemes has yielded a variety of fascinating research data and, more importantly, it has brought practical benefits in the form of technological advances and the development of new products. Dr. Omar illustrated this with a series of stills that traced the development of tissue culture technology for mass date palm production.

Most impressive of all, however, has been KISR?s commitment to environmental projects. As Dr. Omar pointed out, it has, for instance, been hugely instrumental in the development of conservation areas such as Sulaibiya Field Research Station and the Sabah Al-Ahmad Nature Reserve. Other areas that it would like to see protected have also been identified in cooperation with the National Biodiversity Committee.

To support the broader aims of encouraging biodiversity in these protected lands. KISR has begun to develop native plant seed production technology and has, for instance, established a nursling hank of indigenous plants, ones that will be reintroduced into their natural habitats. It is also hoped that a breeding program for endangered wild animals will lead to their reintroduction into the wild.

To conclude, Dr. Omar outlined the ways in which K 1 SR aims to use a range of media, including brochures, films and children?s books, to raise public awareness about the values of biodiversity and the importance of protecting native species and ecosystems. Mote ambitious are the plans that KISR has to encourage eco-tourism through visits to Places like Sulaibiya Field Station, and by offering Open Days at KISR research facilities.

Dr. Omar?s presentation was followed by two live minute speeches by representatives of Motorola and Peregrine Development International. Motorola?s Country Manager. Mr. Hussam Al Attab, outlined the latest developments in mobile communications technology and described the current state of world coverage. Mr. Dennis Wright. President of Peregrine Development, informed attendees about the types of operation that his company are involved in and committed to.

Fastive Fun at the Radisson SAS

The American Business Council-Kuwait marked the end of 2005 with its annual Christmas party at the Radisson SAS Hotel on December 17.

Upon walking into the festively decorated function room, the seasonal feel of the evening was immediately established for all attendees, as the adults were given Christmas Carol booklets, and their children a pouch full of candy. These welcoming gestures set an appropriate tone for an evening that was characterized by generosity and cheer.

The five person choir for the evening consisting of Hedy Memendec, Jemima Jocelyn, Smitha Mathew, Deepa Hendriques and Lisa Schrier did much to enhance the festive spirit of the occasion and were warmly received by the audience for their efforts. Another musical highlight was provided by Hedy Memendec who played an exquisite piano solo whilst the diners enjoyed their meal.

Top billing on an occasion like this went, as it has to of course, to Santa Claus whose arrival sent shivers of anticipation through an expectant crowd of children of all ages. Sitting in their time—honoured place on the knee of the busy geriatric, the smiling youngsters received a gift each. Before departing for his wintry home, Santa called on three more special people to occupy his patella-pereh: ABC's Chairman, Mr. John Hohol ick, its Executive Director, Kim Campbell, and its Executive Assistant Meera Ibrahim, all of whom were rewarded for being especially good boys and girls that year.

Generosity in the form of individual and corporate sponsorship of the evening's events was recognized by John Hoholick when he thanked those concerned for their support. The corporate sponsors who provided the evening's raffle prizes were Bader Sultan & Bros. Co.; Refreshment Trading Company; Al Hozaimi Group; Marina Hotel; Radisson SAS Hotel; MTC; PWC and Al-Bahar & Bardawil. Mr. Hoholick also expressed his and the ABC's gratitude to Toby Switzer, Emad Al Zaben, Jeff Flanagan, Edward Cars and Minda Hedges for their sponsorship of the choir dinner.

A wonderful evening was concluded with rousing renditions of Frosty the Snowman and Jingle Bells that sealed the occasion's festive mood and sent everyone home happy.