WEALTH Magazine / July-August 2011

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GEORGIA GUIDEDBY THE PRESIDENTTHE MOST POPULAR GEORGIAN UNIVERSITIES

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Publisher: Intelligence Group llc. Director and Editor-in-Chief: Zviad Pochkhua. Copy-Editor: Iona Maclaren. Technical Director: Temur Tatishvili. Marketing Director: Lali Javakhia. Communication Manager: Eka Beridze. Layout: Intelligence Design Studio. Writers: Mariam Papidze, Tamar Khelaia, Keti Chkikvadze, Koka Kalandadze. Distribution: Intelligence Group llc. Projected in partnership with National Bank of Georgia. Consulting: Global Idea. Sponsored by: ACT Research, Unicard, Lilo 1, Intourist Palace, Roniko, BasisBank, Goodwill, Diplomatic Vilage, Archi-medes Global Georgia, Georgian Lottery, Caraps Medline, Barambo, Holiday Inn, Rivoli, Sheraton Metechi Palace, Sheraton Batumi, Marriott Tbilisi, Courtyard by Marriott, Radisson BLU Iveria Hotel, Radisson Batumi, Georgian Palace Hotel, Mc’Donalds, Caucasus University, Rakia FIZ, Badagoni, Velagio, MonteNapoleone. Distributed free of charge among corporate and private subscribers. All materials are copyrighted. Copying, reproduction or distribution of text and image materials are prohibited. Address: 17 Mtskheta str. Tel: (+995 32) 2 252 275. Advertise in WEALTH magazine: [email protected] a copy: Tel: (+995 32) 2 252 275 Ext: 3. Letters to Editor: [email protected] | Website: http://wealth.finchannel.com

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RUSSIA AMONG THE TOP 4 VISITING NATIONS TO GEORGIATURKEY LEADS THE LIST, FOLLOWED BY AZERBAIJAN, ARMENIA

A record number of tourists - 1,444,299 - from different countries have visited Georgia since January 2011. Offi cial statistics show a 45% in-crease compared to last year. The biggest number of tourists came from Turkey, Azerbaijan, Armenia and Ukraine.

According to the Department of Tourism and Resorts of Georgia 393,532 tour-ists visited Georgia from Turkey in the fi rst 7 months of 2011 which is 42% growth compared to the last year when 276,793 tourists visited Georgia.


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376,327 tourists visited Georgia from Azerbaijan this year. That shows 46% growth compared to last year’s statistics - the 256,530 Azeri tourists who visited the country in 2010.336,326 Armenian tourists visited Georgia in the fi rst 7 months of 2011, 43% more than the last year, when 234,642 tourists visited Georgia from Armenia.Despite the tense political situation between Russia and Georgia, Russian tourists are number 4 out of the Top Visiting Nationalities. During the last seven months 131,655 tourists visited Georgia from Russia. That is almost twice more than last year’s statistics (87,682).“In 5th place out of the countries which produce the most tourists to Georgia is Ukraine, from where 30,968 tourists visited our country. The number of Ukrainian tourists has also increased by about 23% in accordance with last year when 25,196 tourists visited Georgia for the fi rst 7 month index. 26,236 tourists visited Georgia from Iran, 15,978 times more than last year when 10,258 tourists visited Georgia from Iran. The number of visiting tourists from Iran has increased by about 156% this year,” the Department of Tourism and Resorts told The FINANCIAL.

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The USA, one of the closest political allies of Georgia, is in 7th place among the Top Visiting Nationalities. 13,471 American tourists vis-ited Georgia this year. Their number has increased by about 25% this year, while last year for the same period’s index, the number of

tourists from the USA totalled 10,785. The highest increase in the percent index belongs to tourists from Kazakhstan. The number of tourists from Kazakhstan has risen by 251%. 13,116 tourists visited Georgia in the fi rst 7 months of 2011. This number is 9,376 more than the index of this year, when 3,740 Kazakhstani citizens visited Georgia. 12,973 Israeli tourists visited Georgia this year, while last year the number to-talled 9445. Visitors to Georgia from Israel have increased by 37% this year.

10th place belongs to tourists from Germany whose number totalled 11,699 this year, while their number was 8,718 last year. The number of German tourists in Georgia has increased by 34%.

Together with Tbilisi, the capital of Georgia, the city of Batumi is one of the most popular and most visited cities in Georgia in the summertime. Batumi has become very popular recently as many famous events are held there, including MTV Live and International Jazz festivals.

“Batumi easily makes visitors fall in love with it, with its unique blend of sub-tropical coastline climate framed with rich green mountains and a legendary nightlife. The health-giving qualities of this combination of sea and mountain air is renowned and one reason why some of Georgia can boast twice the world average of centenarians. Batumi is Georgia’s number one beach resort,,


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DEMAND FOR ELITE RESIDENTIAL HOUSES INCREASING

BY MARIAM PAPIDZE


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Demand for elite residential houses in Batumi and Tbilisi has increased, real estate specialists say. It isn’t approaching the level of before the crisis, but it has increased signifi cantly.

Before the economic crisis real estate was experiencing a peak in demand. Flats were being sold in buildings that were still under construction. The August War and eco-nomic crisis signifi cantly infl uenced the Georgian market.Elite residential houses’ prices today vary from 1,500 to 1,800 USD per sq.m, whereas a few years ago it was 1,700-2,000 USD. That’s the price of un-renovated “white framework”. The term of delivery which investment com-panies offer consumers is an apartment ready for deco-ration. Renovations per sq.m cost around 100-150 USD. To buy and completely decorate a house requires about 400,000 USD per 180-240 sq.m.Beside the price reduction dwelling space has also de-creased. Whereas before the crisis consumers demanded 200-300 sq.m apartments, now demand has decreased to an average of 150 square meters.Since the crisis economy-class apartments have had fewer buyers than elite ones. The reason is that the crisis affected the social classes. Affl uent people can still afford to pay solid money for high class real-estate.

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t he basic concept of the Free Zone is to enable entrepreneurs to establish and run sustainable businesses free from all major restrictions and burdens, namely from taxes/

duties, import/export restrictions, local/municipal laws, state red tapes.An entrepreneur operating in FIZ can focus full time on his smooth business expansion in the shortest possible time and with least resources without diverting his attention on Tax/Regulatory and other such matters. Our project - Poti FIZ, covering the territory of 300 hectares, is situated on historic Silk Road between East & West. With the investment of more than 400 million USD including the investment in the Poti Sea Port, we are building world class state of art infrastructure, modern warehousing complex, container storage areas, Business Centers, etc.As Poti FIZ is situated right next to the Poti port, it gives the companies the advantage of lowest cost for import and export due to the very low local logistic/transportation cost. Further notable factor is that there are no taxes applicable in the Free Zone for import/export of raw materials and goods. The territory is well-connected to the railway system and highways connecting to the growing economies of Turkey, Azerbaijan, Kazakhstan and Russia, etc. Poti, situated on the Black Sea shore, is the shortest way from East to Western European countries and vice-versa.Poti FIZ provides the same level of suitability for the companies involved in the new industries such as High Tech, as for the traditional ones, like Agro Business. Having the role of the logistical and manufacturing hub, Poti FIZ is very cost effective option for the companies who want to expand in the new markets of the Caucasus and Central Asia and the EU countries. Due to low cost of power (electricity) and labour, power intensive and industries requiring large labour force, will fi nd operating from Poti FIZ very cost effective and benefi cial. For the initial stage leasing rates in the Poti F.I.Z are very competitive and attractive being one of the

lowest in the Black Sea region. Lease cost for 1sq.m starts from USD 7 per year for manufacturing companies. Hence the early investors stand to gain a lot on long term basis. The rental is fi xed for fi rst ten years. The price for different types of licenses (manufacturing & commercial, General and Special trading, logistics, service, consulting, Banking, contracting) starts from only USD 2500 per year – the lowest in the EU! The services to be provided within the Free-zone include the primary and secondary roads giving complete access to all industrial plots with-in the project area, street lightening, water supply, fi re fi ghting system, sewerage network, storm-water drainage system, electric supply and irrigation network for green-zone areas. The design criteria for each segment of development of infrastructure will be as per the international specifi cations to ensure that the FIZ facilities are comparable to the best in the world. Poti FIZ is already provided with availability of electricity, water, gas and railway. The whole project area is protected with modern camera surveillance system and the security is provided by the Georgian police under a corporate agreement with Poti FIZ management. The project has full and complete support of the Government of Georgia and therefore a very investor friendly free-zone regulation is in place. Poti Free Industrial Zone has received extremely good response from Investors from various countries like USA, Switzerland, Georgia, Azerbaijan, Armenia, Ukraine, Iran, Turkey, UAE, India, Cyprus Republic, etc, and already 53 companies have taken licenses to set-up businesses in Poti FIZ. The investors represent various sectors, such as manufacturing of magnesite, production of edible oil, manufacturing of furniture, manufacturing of ferroalloys, general trading, etc. Some of these companies have started construction of their factories and units in Poti FIZ.

The First Free Industrial Zone

in the Caucasus Region at Poti, Georgia


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During the fi rst two days of August 28,535 tourists visited Batumi, the Black Sea city of Georgia. Among them more than 12,000 were for-

eign tourists, according to the Department of Tourism and Resorts of Adjara. Georgia’s fi rst ever MTV Live music event featuring global superstar Enrique Iglesias contributed to the rise in the number of tour-ists in the region.

In total 400,000 tourists visited Adjara in June and July,” Vaja Diasamidze, Head of the Department of Tourism and Resorts of Adjara told The FINANCIAL. “More than 150,000 tourists came from abroad. We’re expecting another 350-400,000 tourists by the end of August. So far in 2011 5-6 great concerts have been held in Batumi.

Most of the tourists that visited Adjara came from Turkey, Armenia and Iran. Out of 400,000 tourists 50,000 came from Turkey, 38,000 from Armenia, 20,000 from Azerbai-jan, 9,000 from Iran, 4,000 from Ukraine , 3,500 from Israel, 3,500 from Russia and others from Western Europe and America. The number of tourists from the US and UK has increased as well.

A 36 meter-high stage construction was in-stalled on Europe Square. 200 technicians were brought to Batumi for this.

Due to the capacity of Europe Square, MTV Live Georgia concert goers were given ac-cess to a fi rst come, fi rst served basis while many more were able to watch on giant screens erected in Batumi at The Boulevard and also in Theatre Square. 12 thousand turned out to be lucky as they arrived fi rst from 5 to 7 o’clock. According to con-cert organizers, more than 50,000 people watched the concert from giant screens.

Before Enrique Iglesias, jazzman Chris Botti and British musician Sting held a charity con-cert in Batumi, at Piazza. The money was to go to the Oncology Prevention Centre. Rema Gamichava, head of the Centre confi rmed the information: “About 10 days ago we received 340,000 GEL from the Chris Botti and Sting charity concert”.

Starting with the New Year concert with Andrea Bocelli and fi nishing with MTV Live Georgia, Batumi presented 6 shows to Geor-gia and the world this year. Among them was the Black Sea Jazz Festival Batumi 2011 with 26 groups and 150 artists performing. Ticket prices were 40, 60 and 90 GEL. The most expensive tickets sold were to Macy Gray’s performance.

“In general these types of music festivals, concerts and cultural events increase not only the number of local tourists, but also the number of international tourists,” said Maia Sidamonidze, Head of the Georgian National Tourism Agency.

MTV HELPED GEORGIA TO BRING TOURISTS TO ADJARA

BY MAIAM PAPIDZE


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FINANCIAL MAGAZINEBABILON.GE

ALL STREAMING. NO HASSLE.Everything you want to watch — movies, TV shows, photos, and more — streams wirelessly to Apple TV. That way you don’t have to worry about managing storage or syncing to your iTunes library. HD movies and TV shows play over the Internet to your widescreen TV, while music and photos stream from your computer. Either way, all you have to do is click and play. Since Apple TV features a powerful A4 chip, it streams everything effortlessly, without frozen screens or stutters. Video looks crisp and clear. And just like watching a DVD, you can fast-forward through opening credits, pause for a popcorn break, or replay a hilarious scene until you memorize every line.

GET CONNECTED WITH APPLE TVSetting up Apple TV is about as simple as it gets. Just plug the power cord into the wall and connect Apple TV to your widescreen TV using an HDMI cable (sold separately). Since everything streams wirelessly to Apple TV, that’s all you need. Well, that and a comfy couch.

FROM THE MOVIE THEATER TO YOUR HOME THEATERNo more waiting for DVDs or watching stale blockbusters on cable. With Apple TV, you get instant access to the hottest Hollywood titles and new releases — often the same day they come out on DVD. Popular movies are never out of stock and you can rent as many as you want. That’s perfect for those spontaneous movie nights (or afternoons or mornings). Search by top movies, title, or genre. Even read a quick movie review, watch the trailer, and check out the latest ratings from Rotten Tomatoes. Once you fi nd what you’re looking for, simply press Play, and in seconds, you’re watching the opening credits with theater-like Dolby Digital 5.1 surround sound.1 SD rentals start at just $2.99, and HD rentals start at $3.99. You have 30 days to start watching, and once you begin, you can watch as many times as you want in 24 hours.

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Everybody knows that if you make a bad movie that makes money, you can still work because people in Hollywood gravitate toward anyone who holds the

key to what the public wants

RENNY HARLIN , LOS ANGELES TIMES


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$20,000,000 5 Days of War

“You know it’s like, the crew and my cast, we were here to tell a story”, Director Renny Harlin, said on 5 days of August’s premier in Tbilisi. “We did not care what it took to make it. We wanted to tell a story and the world deserved to know the story. And when you’re going to watch this, imagine what they are going to think in America and everywhere else. I hope you enjoy it.”

A drama set centered around the war between Russia and Georgia, and focused on an American journalist, his cameraman, and a Georgian native who become caught in the crossfi re. Filming started in October 2009, in Tbilisi, the capital of Georgia. Filming took 36 days with a budget of 12 million dollars.

According to the Georgian president Mikheil Saakashvili the fi lm was not fi nanced by the Georgian government, but one of the producers, David Imedashvili, said that the initial funding for the project came from a Georgian government fund.One of the buildings of the Georgian Presidential administration was used for fi lming parts of the movie. Some members of the special effects team were Russian and had previously worked on Night Watch (2004 fi lm). The military equipment and personnel used in the fi lm were temporarily lent by the Georgian army.

The fi lm received 5.7/10 on IMDB based on 3,384 votes. Reaction to the fi lm is extremely divided, with almost 35 percent of the rating 10 out of 10, and approximately 20 percent of the rating 1 out of 10. Review aggregate Rotten Tomatoes reports that 80% of critics have given the fi lm a positive review based.

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Sharon Stone did not appear in the fi lm but attended the premiere and a charity event that followed to raise money for the families of those who suffered during the war

As much as 1.5 million lari (about $900,000) was gathered at a charitable dinner in Tbilisi, which was attended by politicians, businessmen, and Hollywood stars who arrived in Tbilisi for the premiere of Five Days of August, Georgian information agencies report Monday. All proceeds will be given the families of those killed in the 2008 Russia-Georgia war.The dinner was set for 160 people, who paid an entry fee of $5,000-$10,000. President of Georgia Mikheil Saakashvili and First Lady Sandra Roelofs, as well as the fi lm’s direct, Renny Harlin, attended the event. Sharon Stone was given a private tour of the presidential palace by the real-life Saakashvili. Appearing somewhat shy and slightly nervous, Stone later was seen joking and laughing with the president. It was Tbilisi’s fi rst Hollywood premiere, and judging by the success of the event, it’s unlikely to be its last.


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21Wealth|FINANCIAL MAGAZINE

5 Days of War, isn’t just an impressive piece of fi lmmaking, it’s a fascinating look at a war that

was barely a blip on the radar screen in the West

THE MIAMI HERALD

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ANDY GARCIA PERFORMING ON PIANO DURING THE CHARITY EVENT IN TBILISI, GEORGIA


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“We see the tragedies that arose so hopefully they won’t happen again,”

Andy Garcia

JULY 2010 24Wealth

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for detailed information please contact: [email protected] Tel in Tbilisi: 2 999 662 facebook.com/airticket

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CAREER“It’s possible to become a billionaire, even without having a business education, as some people are born with a talent which cannot be taught by any business manual”


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“Today we rely on the young generation who might be 35”

“Good education strongly infl uences the future wealth of individuals as it correlates with good work positions and consequently, high salaries. The better the education is, the more degrees the individual has, the more languages he or she speaks, and therefore more in demand the individual is on the job market. All these factors are refl ected in their welfare,” said Dr. Kakha Shengelia, President of Caucasus University. He says that some companies nowadays have faced problems with the graduates of western schools and universities, however there are some exceptions.

“It’s possible to become a billionaire, even without having a business education, as some people are born with a talent which cannot be taught by any business manual” He recalls the example of Bill Gates, who was dismissed from Harvard Business School, but went on to achieve much more than his more successful counterparts. “I strongly agree that if a person has talent, a business education will make sure that the talent is not in vain, and that the talent is put in the right direction. The conclusion from here is that in spite of the fact that a business education is not the only determining factor to becoming a billionaire, it can help a lot,” Shengelia explained. Caucasus University is one of the leading private universities operating in Georgia, incorporating schools of business, law, media, technology, governance, humanities and tourism. In his interview with WEALTH, Dr. Shengelia spoke about the infl uence of business education, current employment trends and the

achievements of post-CSB graduates. “Having a western education has always been very important for companies. Very often the recruitment decision is based on the diploma of job applicants, which means that the diploma of a western university or school is usually considered a competitive advantage.Nowadays however some companies have faced problems with the graduates of western schools or universities. In spite of the fact that they have a very good education, they do not have enough information and knowledge about the local business environment and consequently need some time to adapt to Georgian business. That’s why in spite of the fact that western education is still highly in demand and appreciated, high quality Georgian education is also very important.

Q. HOW EASY IS IT FOR STUDENTS WITH EUROPEAN EDUCATION TO BE RECRUITED BY FOREIGN COMPANIES?A. Students with European education can easily fi nd work at foreign companies due to the fact that the western universities are usually recognised by the employers, and they trust the quality of the education. However some of the local universities have managed to build very strong brand awareness, and the graduates of local high-end universities are also well in demand by foreign companies operating on the Georgian market. The systems of education in Georgia and US are different. Georgian education follows the European, so-called Bologna regulations, while the US has its own regulation system for higher education.I must say that our university uses a mixture of European and American educational systems, which facilitates our international mobility for students’ exchanges for both Europe and the US.

Q. HOW IN DEMAND IS AN EXECUTIVE MBA IN GEORGIA?A. The Executive MBA is becoming more and more popular in Georgia. Caucasus University offers an Executive MBA in collaboration with one of the top European business schools - Grenoble Graduate School of Business, and the demand for this programme is increasing every year, in spite of the fact that the price for an Executive MBA is higher than for a regular MBA. This can be partially explained by the fact that the Georgian market is developing each year and there are a number of specialists who hold an MBA degree. However there are also a lot of people who have already achieved top

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INTERVIEWED BY KETI CHKHIKVADZE

DR. KAKHA SHENGELIA, PRESIDENT OF CAUCASUS UNIVERSITY

positions in their companies and feel that they are suffering from a lack of knowledge, and need some additional qualifi cations which is crucially important for top managers and is a key success factor for top executives.

Q. WHAT ARE THE CURRENT OFFERS FOR EXECUTIVES IN TERMS OF MBA EDUCATION AT CAUCASUS UNIVERSITY?A. Caucasus University’s School of Business offers a Dual Degree programme in cooperation with Grenoble Graduate School of Business (France), which is a pioneering relationship across Europe and the Caucasus, leading towards two simultaneous degrees. Upon completion of this programme students are awarded the Master of Business Administration (MBA) degree from GGSB and the International Executive Master of Business Administration (IEMBA) degree from CSB. This dynamic, fl exible, and demanding programme provides the students with the common toolset they need to succeed in today’s global business environment. We provide the following specialization tracks: global management, management consulting, fi nance, marketing, innovation management, entrepreneurship, business intelligence, project management.

Q. HOW MANY CU STUDENTS ARE ENROLLED IN EXCHANGE PROGRAMMES AND IN WHICH COUNTRIES?A. This year about 90 students of Caucasus University are enrolled in dual degree and exchange programmes. 25 students are participating in dual degree programmes with Georgia State University (USA), Chester University (UK), and Upper Austria University

(Austria). 65 students are participating in exchange programmes with leading universities in the USA, UK, France, Germany, Latvia, Lithuania, Estonia, Austria, and Portugal.

Q. HOW HAS DEMAND FOR BUSINESS EDUCATION CHANGED DURING THE LAST TEN YEARS?A. For the fi rst time the demand for business education is not too high. Due to the fact that the notion - business study - was not known in countries in the post-Soviet bloc, and economic education was more common, people were not so attracted to business education. However with the development of the business sector, the demand for business specialists increased drastically. In the early 1990s commercial banks and other business units were employing mathematicians and foreign languages specialists to business positions, as there were not enough qualifi ed professionals in the sphere on the market. But as such an issue as business education became clearer, people realized that in order to become demanded on the job market, a business education is necessary. I must say that the demand is increasing every year. In this aspect it’s possible to say that the Georgian trends for demand in business education are correspondent to the trends in the western world.

Q. WHAT ADVICE WOULD YOU GIVE TO GEORGIAN GRADUATES ON GETTING THEIR DREAM JOB?A. The main advice for students is to study hard and get all the information which is provided to them during their studies. Those who are motivated, and really would like to reach the top of the summit in their careers will be able to do so. But hard work is really necessary

as nothing in life is free. Students should invest their energy now, but the future ROI of this energy will be very high.

Q. WHICH ARE THE DREAM JOBS OF YOUR BUSINESS SCHOOL STUDENTS?A. The dream jobs are different for students who are studying different specialities, but according to the recent survey conducted at our business school the dream jobs for our students are at the following companies: the “Big Four” (Delloitte, PWC, KPMG, Ernst & Young), Google, Bank Republic (Societe Generale Group), TBC Bank, Bank of Georgia, Geocell, BP, Wissol, IBM, Ferrari, Toyota, USAID, WalMart, Aldagi BCI, Coca-Cola, and other leading international and Georgian companies.

Q. PLEASE COULD YOU PROVIDE STATISTICS ABOUT BUSINESS SCHOOL GRADUATES AND THEIR EMPLOYMENT?A. I’m very proud to say that the level of employment of our graduates is very high. Approximately 95% of Caucasus School of Business graduates are currently employed in public, private, and international companies. Those who are not working are mainly continuing their studies abroad at a graduate and post graduate level.Our graduates are not only working in Georgia, but also for well-known companies the world over, companies like EBRD (UK), AES Kievoblenergo (Ukraine), Societe Generale (Singapore branch), Ernst & Young (the Netherlands), Nissan Design (France), Visas Inc. (Texas, USA), Coca-Cola (Atlanta, USA), General Motors (Germany), International Atomic Energy Agency (Austria), Barclay’s Bank (UK), Oportunista SL (Spain), PWC (Czech Republic), The Business Models Inc. (New York, USA), Procter and Gamble (Switzerland), Global Initiatives (USA), Statoil Hydro (Norway) and many others.

As the fi nancial markets are developing fast in Georgia, the demand for fi nancial specialists is booming every day. The leading banks, the “big four” and other fi nancial consultancy and advisory companies are ready to employ both the fresh graduates and the experienced graduates of business schools. Therefore the demand for fi nance concentration in the business schools is increasing as well.


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Caucasus UniversityTel.: (+995 32) 2 37 77 77Fax: ( +995 32) 2 31 32 26E-mail: [email protected]

Ulrik RasmussenPartner in charge of Western Europe at Pedersen & Partners,a leading international executive search fi rm advising on the recruitment of senior management

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INTERVIEWED BY KETI CHKHIKVADZE

Wealth


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“Nothing Will Replace Work Experience in Recruitment,” Pedersen & Partners

The FINANCIAL

Finance positions, management change specialists and operations managers are the job positions most demanded by companies worldwide in the post crisis period, according to Mr. Ulrik Rasmussen, Partner in charge of Western Europe at Pedersen & Partners.

According to Mr. Rasmussen, emerging market experience, a university degree and knowledge of the English language are essential for getting a job and are at the top of the list of requirements from potential employers.

“At the end of the day nothing will replace the importance of experience and having worked in this environment during recessions. Education is important but not the only thing one will look at during the recruitment process,” Mr. Rasmussen explained.

Pedersen & Partners is a leading international

executive search fi rm with 44 wholly owned offi ces operating in 41 countries. With broad international coverage, the fi rm provides its clients with access to a global pool of high-calibre executives and the cross-sector expertise of its consultants.

According to Mr. Rasmussen an excess of a million executives are registered in the database of the company. Over the decade of its operations, the company has helped hundreds of clients to recruit senior executives and management teams. “Organisations need to carefully consider the time frame for a recruitment project. In our recruitment process average placement period is 4-6 weeks. This is the time taken to identify, shortlist, interview and hire a candidate. However, after the individual is placed it takes 4-5 months time, in senior positions it’s up to six months, for an executive to actually start, due to, for example, terms of notice period,” Mr. Rasmussen said.

“Today turnaround and change of management are very high in the agendas of many companies. Many of the managers who have been around in the companies and have done the job for many years are 45-50 plus now, have seen and tried a lot in turning around businesses. If we went back to many of these guys when they were 20, they did not have undergrad, master or PhD degrees.

At that time having an undergrad was a big enough deal. However they have work experience and can ‘smell’ the particularities of their industry. They know how to manage and build a team. Consequently, the requirements for many senior executives are not necessarily tied to certain degrees

As for languages, English is at the top of the list every single time. According to nationality, Germans and Austrians are always keen on one

F inance positions, management change specialists and operations managers are the job

positions most demanded by companies worldwide in the post crisis period, according to Mr. Ulrik Rasmussen, Partner in charge of Western Europe at Pedersen & Partners.

According to Mr. Rasmussen, emerging market experience, a university degree and knowledge of the English language are essential for getting a job and are at the top of the list of requirements from potential employers.

“At the end of the day nothing will replace the importance of experience and having worked in this environment during recessions. Education is important but not the only thing one will look at during the recruitment process,” Mr. Rasmussen explained.

Pedersen & Partners is one of the leading international executive search fi rms with 44 wholly owned offi ces operating in 41 countries. With broad international coverage, the fi rm provides its clients with access to a global pool of high-calibre executives and the cross-sector expertise of its consultants.

According to Mr. Rasmussen an excess of a million executives are registered in the database of the company. Over the decade of its operations, the company has helped hundreds of clients to recruit senior executives and management teams. “Organisations need to carefully consider the time frame for a recruitment project. In our recruitment process average placement period is 4-6 weeks. This is the time taken to identify, shortlist, interview and hire a candidate. However, after the individual is placed it takes 4-5 months time, in senior positions it’s up to six months, for an executive to actually start, due to, for example, terms of notice period,” Mr. Rasmussen said.

“Today turnaround and change of management are very high in the agendas of many companies. Many of the managers who have been around in the companies and have done the job for many years are 45-50 plus now, have seen and tried a lot in turning around businesses. If we went back to many of these guys when they were 20, they did not have undergrad, master or PhD degrees. At that time having an undergrad was a big enough deal. However they have work experience and can ‘smell’ the particularities of their industry. They know how to manage and build a team. Consequently, the requirements for many senior executives are not necessarily tied to certain degrees

As for languages, English is at the top of the list every single time. According to nationality, Germans and Austrians are always keen on one being able to speak the German language.

It’s very important to have work experience in emerging markets. If you take an executive from London or the States that has never worked outside those markets before, it does not work well if they go to Bulgaria or Ukraine for the fi rst time, and expect processes, procedures, policies

and templates to be the same.

There are different expectations and requirements of the Western individuals within organizations; it’s rather tough going for the fi rst time to the emerging markets. An individual might certainly work well in the United Kingdom, but this does not mean they will be

successful in Georgia, for example. Therefore emerging market experience and university degrees are essential. Some of our clients put MBA or Executive MBA in their wish lists, but it’s not a must. They will hire the best person for the job.” Pe

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The most popular job positions and companies for executives

“Many job positions are typically for fi nance positions today. First of all due to liquidity problems, many companies are low in cash, all are talking of a change of management and are going through cost cutting, looking at resource optimization.Previously in high growth markets where the margins were massive no one looked into details but looked at the volumes of money made. Today it’s once again a fi erce market. We have to go and learn how to operate in mature markets. But in mature markets you have to extract a lot of information, you have third party consultancies providing market information and challenges, which you do not fi nd in emerging markets.Many of our clients have been keen on high level fi nance positions, controllers, fi nance managers and CFOs for generating additional fi nancing and for implementing control procedures for fi nancial departments. The situation is quite diffi cult today as emerging markets are very young, many fi nancial professionals who are familiar with off-shore fi nancing and dealing with off-shore accounts do not have that experience.Today we rely on the young generation who might be 35.The dream companies among executives are always the multinational organizations like Coca-Cola and Philip Morris. Blue chip companies are always at the top of their agenda. However, on the other side, small companies may allow higher commissions as there are no salary brackets. So working with small organizations one may earn more money and grow faster within the organization.”

Hiring activity worldwide

“The demand for executives is very different for different countries. We are today the emerging markets expert that has moved to mature markets. We have entered UK, and we have an offi ce in Germany and Austria. However, we are predominantly emerging market experts, and of course there is a degree of maturity within these countries, which is driving the number of assignments we do.

In Kazakhstan there is huge potential and we are performing quite well there. Many of our clients are active, keen on entering or improving their current organization in Kazakhstan. However, the countries like Moldova, Romania, Macedonia, smaller markets and economies are not really essential for many of our clients to scale or improve the performance as investments are rather small.We are doing rather well in Poland, the Czech Republic, Hungary, Romania and also neighbouring countries. Moreover, we are doing generally well in recruiting in some of the smaller markets. It’s not a priority for the average client now to change the organization due to the scale of the economy.”

The key characteristics of CEOs“The key characteristics of CEOs are probably growth potential and trying something new. Many these days have earned good money so that’s not the main driver. It’s about a new challenge, not necessarily running bigger P&L. These individuals would like to arrive at a new business to try and learn new things, and I think this is key - the new challenge. It is also important to get a salary increase but to be honest this is not the main driver in taking a job. However, when there are big positions available in the market with giant conglomerates, most guys would like to work for the big players for the recognition aspect.”

Outsourcing“We saw outsourced HR departments in the pre-crisis period. During the recession people were laid off or were moved to different departments but still performing the same task. Many of the companies in the post crisis period have put those individuals back to work to keep the expertise. I think HR professionals are vital for an organization. Other executives are not going in-depth, building the payroll and duties of the HR department. We obviously understand the importance of HR which includes building a sustainable long term organization, all kinds of challenge management, retention tools and supporting an organization’s development.In emerging markets HR positions have been taken rather lightly and not considered a very important position. In the recession the need for a proper HR department became more obvious. HR is not about someone just fi lling the database, but adding value to the company and strategic business partner. Currently we do not see many departments being outsourced unless there is a tight payroll as the added value of HR is returning.”

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Tbilisi Free University and Ivane Javakhishvili Tbilisi State University were the most popular universities during the 2011 Unifi ed Entry Examinations. Tbilisi Free University is one of the most expensive one, as well. Studying fee is 6 950 GEL per year for all programs.Studying fee at TSU is 2 250 GEL for all programs. Price is the same (2 250 GEL) for all state universities in Tbilisi.

Caucasus University has the most expansive program in Georgia – business administration. Studying fee is 7 500 GEL per year. The lowest price is 3 900 GEL. But the university doesn’t have high competition.

Studying fee at Georgian University is quite high for business administration programs 6 950 GEL, while for some other programs it goes down to 2 250 GEL.

The the Black Sea International University did not have high competition is spite of its popularity. The contingent was 720 and competition this year. Studying fee here starts from 4 600 GEL. Maximum price is 5 750 for tourism and business administration programs.

The situation is similar at another leading school Georgian-American University. Studying fee here is 6 000 GEL per year.

Studying fee for most programs at Grigol Robakidze University is 4 000 GEL, but for journalism program it reaches to 4 500 GEL and for business administration - 4 850 GEL.

BUSINES EDUCATION

FREE UNIVERSITY Bedia Street / Nutsubidze Plateau I Micro District Tbilisi 0183, GeorgiaTel: 2 2009 - 01; 2 2009 - [email protected]

IJSTUAddress: 1, Chavchavdze Ave., 0218 Tbilisi, GeorgiaTel.: (+995 32) 22 51 07

CAUCASUS UNIVERSITY International Programs Offi ceTel: (+995 32) 2 37 77 77 (ext. 131)E-mail: [email protected]

IBSUDavid Agmashenebeli Alley 13km, 2Tbilisi, Georgia, 0131(+995 32) 2 59 50 05

GAUTbilisi, Chavchavadze Av. Cul de sac 2, #5, Tel: (+995 32) 2 91 50 03/04/08 Fax: (+995 32) 2 91 50 44 E-mail: [email protected]

GRIGOL ROBAKIDZE UNIVERSITYTbilisi, Jano Bagrationi Street, N6 Tel:(+995 32) 2 38 44 06E-mail: [email protected]

FEES

2011

NATUKA GAGUNASHVILI MISS STUDENT 2011 TBILISI STATE MEDICAL UNIVERSITY

PHOTO BY LIG STUDIOJULY-AUGUST 2011

35Wealth|FINANCIAL MAGAZINE

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INTELLIGENCE BUSINESS PUBLICATION WRITTEN EXPRESSLY FOR OPINION READERS AND TOP BUSINESS DECISION-MAKERS

fi nchannel.com

I need you!

HUMAN RECOURCE TRENDS90 % of female HRs prefer to hire a man rather than woman90% of CEOs in Georgia are men90 % of HRs in Georgia are women

SEX DOES MATTER SEARCH CANDIDATES BY ALL POSSIBLE CRITERIAS

www.mycareer.geASSISTING TO BUILD A BETTER CAREER*

JULY-AUGUST 2011 38

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Georgian Lottery is a member of the World Lottery Organization as well as European Lottery and ToTo organization, meeting all their requirements. Despite being a new member, it is already involved in a range of mutual interest-based projects’ realization,

which will contribute to further advancement of this fi eld all around the world.

Georgian Lottery started organizing and conducting national lottery all around Georgia as an exclusive right holder in this fi eld on 1st of October 2009. Currently the Georgian Lottery offers three types of games to its consumers: Instant Games (IG), Lotto and ToTo.

Georgian Lottery tickets are distributed around Georgia to 2,000 selling points.

Lotto is the game which can make people millionaires. This is a simple rules-based engaging game. The player wins a top prize category jack-pot if the ticket numbers match 6 numbers of the balls drawn on the draw date. The draws are conducted twice per week in a live format at one of the leading Georgian TV Channels.

Georgian Lottery has numerous winners of Lotto 6/36, but it is the very game that “gave” Zamira Tordinava an excellent chance to become a millionaire. Tordinava, an internally displaced person from Abkhazia - one of Georgia’s break-away regions, won 4,400,000 GEL. (2,6 )

“Well, fi rstly I changed my living conditions,” said Zamira Tordinava. “To be more precise, I have bought two houses, for my married daughter and me. The only thing I can say is that by winning such an amount of money I have built a bright future for my family, made their dreams come true and given all of them the chance to totally enjoy the rest of their lives.”

She says that being a millionaire is neither diffi cult, nor easy… “You are just a millionaire… It’s kind of a feeling that cannot be expressed verbally.”

Instant Game is very innovative, as all the time the company offers new types of winning tickets to the audience. The last one was Sazapkhulo. For the time being, there are 14 types of IG tickets available on the market and the maximum amount of prize equals 8,000 GEL for a ticket worth 2 GEL. The company claims that all of them are very popular with customers, as it’s very simple and amusing. All IG tickets, are printed in Canada, by Pollard Banknote Limited.

Georgian Lottery offered players a national lottery game based on football - ToTo a year ago. The company publishes the list of 14 football matches and in case a player’s results selected in advance coincide with the fi nal ones, he/she wins a jack-pot. The biggest top prize handed to Mamuka Arveladze amounted to 390,000 GEL.

Georgian Lottery recently started to implement an online Lotto and ToTo games’ project, realization of which will assist customers in saving time and enjoy a new style of playing the games they love. Georgian Lottery has created an account on facebook as well and all the company’s

news, including vacancy announcements, is available there.Currently the Georgian Lottery employs up to 250 individuals. If they

have a vacancy, they announce it and after several recruitment steps the chosen person becomes a member of the Georgian Lottery family.

“The Georgian Lottery family is quite large and includes all employees, winners and the people whom the company donates charity to,” said Natan Turkya, Chairman of Georgian Lottery.

Natan Turkya is a 40-year-old successful businessman from Israel. He has run a few companies around the world. Turkya has been living in Tbilisi for fi ve years.

Q. Who are the most active players of your games?A. Actually our customer circle is composed of people of all ages,

starting from over 18-year-old young people going all the way up to pensioners and the elderly. It covers all social levels regardless of their interests, education, background, origins and so on. However I will note and add that not everybody plays our games to win millions. They fully comprehend that for 2 GEL they can win a few thousand GEL. Having said this, I wish all our dedicated customers as well as potential ones to join our big family of winners.

Q. What kind of feeling is it to be working for a company which makes so many people become rich and happy?

A. Our top priority is to make people happy, to keep their attitude and soul towards us sincere, which does not give us the right to fail them. We want to have as many winners in Georgia as possible, since Georgia is a country facing many problems of a social and economic nature. Therefore, winning our monetary or non-monetary prizes, society has true chances to realize their dreams, to make their family members happy.

Unemployment is one of the biggest problems facing Georgia. So if people can’t fi nd a job, we give them the chance to win. Caring for people is at the top of the list of our assignments, as we can really change the lives of people. For the last two years, we have given back approximately 37 million GEL to the winners.

Q. Do you also dream of hitting the jack-pot someday?A. I believe that everyone has their own dream. But the beauty of the

Lottery is that it provides a real chance to you to fulfi l your dreams. After all you can win millions for just 2 GEL. This is a reality, this is a fact, and everything is in your hands…

I wish everyone good luck and success.


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MasterCard, the global payment solution company, is working actively with Georgian banks to launch MasterCard Mobile

Payments to the local market in the next year, according to Mr. Kemal Uyan, Regional Business Development Director for MasterCard South East Europe.

As of the period of June 2011, the number of issued credit and debit cards in Georgia is 3,399,410. That means that almost every adult in Georgia has their own card. The majority of cards are Visa, which exceeds the number of MasterCard cards by more than ten times.

“MasterCard has focused on mobile payments as we believe in the very near future mobile-based card payments will increase rapidly. The banks will be issuing card-based mobile payments using mobile phones,” said Mr. Uyan.

MasterCard has developed mobile based products, services and platforms. These mobile based technologies and platforms are later provided to banks.

“For NFC we have a service called MOTAPS which enables banks and cardholders to personalize mobile based payments and conduct transactions easily. For remote mobile payments we have another platform which we call Mobile Payment Gateway, it’s actually a platform that the banks and mobile operators can use and leverage existing advanced technologies to conduct remote based mobile payments,” Mr. Uyan explained.

In Georgia MasterCard currently works with: Bank of Georgia, TBC Bank, Liberty Bank, Cartu Bank, ProCredit Bank Georgia and TaoPrivatBank.

“We do not currently have an offi ce in Georgia. Our aim is to build a card business in Georgia and to increase the usage of credit, debit and pre-paid cards for people’s everyday lives. We will be supporting local banks in different terms. As for the local presence, whenever it is necessary , it may be evaluated in the future,” said Mr. Uyan.

Mr. Kemal Uyan is the Regional Business Development Director for MasterCard South East Europe. In this capacity he is responsible for the management of all markets and customer-related activities in the region, including Turkey, Israel and CIS countries.

Previously, Mr. Uyan was Director of Innovation and Operations for MasterCard for more than 10 years, in charge of implementing new technologies across the region. Prior to joining MasterCard, Mr. Uyan served as IT Head & Vice President of major Turkish banks for over 10 years.

“I have been working at MasterCard for more than 12 years. I was responsible for the technology in the past, now I am responsible for the innovative products for business development. As Technology Director I visited Georgian banks and institutions fi ve-six times. Georgia is a very important market for us. We are managing ten countries from European markets of high growth, and Georgia belongs to that region. We believe that the Georgian card market will grow tremendously together with our

support. All our colleagues in our Istanbul and Europe offi ces are regularly supporting Georgian banks and markets in order to develop card-based payments here,” said Mr. Uyan.

Since 2002 MasterCard has offered the contactless payment facility to cardholders. In 2002 the company launched the system in the US and later in 2006, in Europe. The system was fi rst launched in Turkey, where MasterCard issued contactless cards and technologies named PayPass.

“Firstly we issued our MasterCard Paypass cards in card form and later in other forms, like watches, keyfobs and stickers. All of these devices can be used to make contactless card transactions and bring consumers’ everday life fast and convenient payments.

We have introduced all these new technologies to banks in Georgia and we hope that in the very near future all of these technologies will be presented to consumers. Consumers will appreciate the leverage of having the latest technologies to complete fast and convenient card transactions.

“In the most recent stage of contactless technologies we

have introduced mobile payment system NFC in Europe starting from 2009. All mobile payments platforms, technologies, services and products have been proposed to Georgian banks and will very soon be undergoing an implementation stage with Georgian banks.”

Q. What will the global trends in electronic payments be in the nearest future?

A. The global trends in electronic payments will be new technological services,

fl exible solutions for the consumer. While speaking of fl exible and convenient solutions we are referring to convenient and safe retail and e-commerce payments solutions.

Recently we implemented MasterCard secure code. Now debit and credit cardholders are able to make secure, fast and convenient internet transactions. Moreover, different payment vehicles are provided to consumers. You will not need to carry your wallet around with you anymore in the future. You will just have your mobile phone, watch or sticker and will be able to travel and make payments via those. Those are the new

payment instruments that are available for the usage of consumers who are getting more convenient tools to do card-based transactions which in turn decreases cash-based transactions.

I N JUNE 2011 THE NUMBER OF INTERNET TRANSACTIONS MADE BY PLASTIC CARDS REACHED 255,032 WHICH CONSISTED OF

11 MILLION GEL.

IN MARCH 2009, THE GEORGIAN NATIONAL BANK REGISTERED A RECORD NUMBER OF INTERNET TRANSACTIONS - 396,438. THIS CONSISTED OF 3,963 THOUSAND GEL.

IN MARCH 2011 NBG REGISTERED A RECORD VOLUME OF INTERNET TRANSACTIONS - 16,907 THOUSAND GEL (264,609 TRANSACTIONS).THERE ARE 1,482 ATMS IN GEORGIA (JUNE 2011).

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A S OF THE PERIOD OF JUNE 2011, THE NUMBER OF ISSUED DEBIT

CARDS IN GEORGIA REACHED 2,861,554, FROM WHICH ONLY 1,245,076 ARE ACTIVE. THE NUMBER OF VISA DEBIT CARDS (1,175,292) IS SEVENTEEN TIMES LARGER THAN MASTERCARD (69,514).

ACCORDING TO THE NATIONAL BANK OF GEORGIA, AS OF THE PERIOD OF JUNE 2011 THE TOTAL NUMBER OF CREDIT CARDS IN GEORGIA REACHED HALF A MILLION, OUT OF WHICH ONLY 261,869 ARE ACTIVE. THE NUMBER OF VISA CARDS (196,927) IS TWELVE TIMES BIGGER THAN MASTERCARD (17,434).

IN JUNE 2011 THE NUMBER OF TRANSACTIONS MADE BY CARDS CONSISTED OF 4,181,770, WHICH EQUATES TO 691,482 THOUSAND GEL IN TOTAL.

We need to build a global system, architecture all around the world. The network should support the

card payments in all of the countries we are operating in, but we can also actually customize and build local solutions based on local needs.

MasterCard is very keen on implementing innovative products, new services too and loyalty schemes. All these experiences are actually to be provided to Georgian banks. In Georgia banks will be able to leverage the expertise that we have. Moreover we have dedicated resources Istanbul offi ce, in regional offi ce, we have dedicated resources to fraud issues, technological issue, operational issues, and business development issues. Moreover, for the new projects we have, apart from managers and fi nance managers, dedicated resources, product specialists focused on different topics which in turn bring more fl exible projects to the banks and consumers.

Q. Currently two leading Georgian banks - Bank of Georgia and TBC Bank as well as Cartu Bank are developing e-commerce in Georgia. How do you see the future of e-commerce in Georgia and in your opinion, why is this service still not popular in the country?

A. MasterCard proposed a secure based e-commerce transaction method like secure code recently. This will be implemented by all banks over the following years. This will lead to a dramatic increase in e-commerce usage in Georgia but also in all the markets in Europe and around the world.

Five to ten years ago consumers were reluctant to put their card numbers on e-commerce sites. They considered e-commerce transactions insecure. MasterCard technologies and improvements, however, are actually changing the behaviour of consumers. Now everybody is doing e-commerce transactions. People are living quite fast and do not want to wait in queues anymore

now that there is a more comfortable ,safe and convenient alternative.

Q. What can MasterCard as well as the banks do for the rapid development of e-commerce in Georgia?

A. In order to increase e-commerce usage banks need to adopt new systems, implement MasterCard SecureCode and different types of products. So all of these different instruments and products are going to increase e-commerce usage and will rapidly develop the market in terms of e-commerce.

Q. It’s expected that partnership with Google Wallet will be essential for MasterCard business. But services such as Google Wallet or PayPal are not available in Georgia. So what will the solution be?

A. Partnership with Google or PayPal are options that MasterCard can actually provide and propose to banks and the markets. However these are not the only services we are actually limited to in the mobile payments space.

We have platforms and services. Whenever Google or any other Mobile payment instrument is available in Georgia, we will be able to support it. This does not mean that we do not have any other solution than Google service in the mobile space. We can actually provide, build and customize infrastructure based on consumer needs and banks’ requirements.

Q. What is the status of MasterCard in Turkey in terms of web-based electronic payments and mobile payments?

A. MasterCard Istanbul offi ce is operating in high growth European markets and is concentrated on all countries. We are responsible for ten countries including Turkey, Israel, Georgia, Azerbaijan and Kazakhstan. These markets are keen on new services, innovative products, and loyalty schemes. We are working with banks to build those services and products, leveraging our experience which we have gained in the other countries we are responsible for.

No5 .Year:1948 - Jackson Pollock - $151.8MILLIONAdjusted price (in millions): $151.8Original price (in millions): $140Date of sale: 02/11/06Rank at sale: 1Seller: David GeffenBuyer: David MartinezAuction house: Private sale via Sotheby’s

Woman IIIYear: 1953 Artist: Willem de Kooning $151.8MILLIONAdjusted price (in millions): $149.1Original price (in millions): $137.5Date of sale: 18-nov-06Rank at sale: 2Seller: David GeffenBuyer: Steven A. CohenAuction house: Private sale via Larry Gagosian

Irises - 1889 - Vincent van Gogh $102MILLIONPainting: IrisesArtist: Vincent van GoghAdjusted price (in millions): $102.0Original price (in millions): $53.9Year: 1889Date of sale: 11-nov-87Rank at sale: 1Seller: son of Joan Whitney PaysonBuyer: Alan BondAuction house: Sotheby’s, New York

Bal du moulin de la Galette - 1876 - Renoir $132MILIONPainting: Bal du moulin de la GaletteArtist: Pierre-Auguste RenoirAdjusted price (in millions): $132.0Original price (in millions): $78.1Year: 1876Date of sale: 17-may-90Rank at sale: 2Seller: Betsey WhitneyBuyer: Ryoei SaitoAuction house: Sotheby’s, New York

Nude, Green Leaves and Bust - 1932 Pablo Picasso $106MILLIONPainting: Nude, Green Leaves and BustArtist: Pablo PicassoAdjusted price (in millions): $106.6Original price (in millions): $106.5Year: 1932Date of sale: 04-may-10Rank at sale: 7Seller: Frances Lasker Brody estateAuction house: Christie’s, New York

Dora Maar au Chat -1941 - Pablo Picasso $102MILLIONPainting: Dora Maar au ChatArtist: Pablo PicassoAdjusted price (in millions): $102.7Original price (in millions): $95.2Date of sale: 03-may-06Rank at sale: 4Seller: Gidwitz familyBuyer: Boris IvanishviliAuction house: Sotheby’s, New York

Portrait of Dr. Gachet - 1890 - Vincent van Gogh - $139.5MILLIONPainting: Portrait of Dr. GachetArtist: Vincent van GoghAdjusted price (in millions): $139.5Original price (in millions): $82.5Year: 1890Date of sale: 15-may-90Rank at sale: 1Seller: Siegfried Kramarsky familyBuyer: Ryoei SaitoAuction house: Christie’s, New York

Garçon à la pipe - 1905 - Pablo Picasso 120$MILLIONPainting: Garçon à la pipeArtist: Pablo PicassoAdjusted price (in millions): $120.3Original price (in millions): $104.2Date of sale: 04-may-04Rank at sale: 3Seller: Greentree foundation (Whitney family)Buyer: Guido Barilla?Auction house: Sotheby’s, New York

Portrait of Joseph Roulin - 1889 - Vincent van Gogh $101MILLIONPainting: Portrait of Joseph RoulinArtist: Vincent van GoghAdjusted price (in millions): $101.7 ++Original price (in millions): $58 plus exchange of works[14]Date of sale: 01-ago-89Rank at sale: 1Seller: Private collection, ZürichBuyer: Museum of Modern Art New YorkAuction house: Private sale via Thomas Ammann, Fine Art Zurich

Portrait of Adele Bloch-Bauer I - 1907 - Gustav Klimt $145.3MILLIONPainting: Portrait of Adele Bloch-Bauer IArtist: Gustav KlimtAdjusted price (in millions): $145.3Original price (in millions): $135Date of sale: 18-jun-06Rank at sale: 1Seller: Maria AltmannBuyer: Ronald Lauder, Neue GalerieAuction house: Private sale via Christie’s

Picasso fell in love with the 29-year old Maar at the age of 55 and soon began living with her. This painting was done during the year 1941, when the Nazis were occupying France. In the 1940s, the painting was obtained by Chicago collectors

Leigh and Mary Block. They sold the painting in 1963. After that, the painting was never shown until the 21st century.During 2005 and 2006, Dora Maar au Chat, then owned by the Gidwitz family of Chicago, was shown worldwide as part

of Sotheby’s exhibitions in London, Hong Kong and New York. It came up for sale in an auction of Impressionist/Modern works held at Sotheby’s on May 3, 2006 in New York and

making it the second-highest price ever paid for a painting at auction. US$95,216,000. Dora Maar au Chat was bought by Georgian oligarch, Boris Ivanishvili for £62.8 million at today’s prices.

£62.8 million


|FINANCIAL MAGAZINE

Alexander Japaridze

$2.1 B#564 Forbes Billionaires

#45 in Russia Age: 56, Source: Oil

self-made Residence: Moscow, Russia

Country of citizenship: Russia Marital Status: Married

Children: 5

Boris Ivanishvili$5.5 B #185 Forbes Billionaires#24 in RussiaAge: 55Source: Investments , self-madeResidence: Chorvila, Georgia Country of citizenship: RussiaMarital Status: MarriedChildren: 4

Carlos Slim Helu & family

$74 B #1 Forbes Billionaires

Age: 71 Title: Chairman

Organization: Telmex Source: telecom , self-made

Residence: Mexico City, Mexico Country of citizenship: Mexico

Marital Status: Widow Children: 6

JULY - AUGUST 2011 44

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LADY GAGA TOPS CELEBRITY 100BY FORBES

LADY GAGA JUMPS TO THE TOP OF THIS YEAR’S RANKING OF THE RICHEST AND MOST POWERFUL ACTORS, ACTRESSES, ATHLETES, WRITERS AND MUSICIANS PUBLISHED BY FORBES. SHE EARNED 90 MILLION FROM MONSTER TOUR.

Georgian Pride in the World’s Fashion Scene

Maicco at J Summer Fashion Show, Savoy London

T he phenomenal success of J Model Management’s Summer Fashion

Show at the world’s iconic celebrity destination Savoy London on 30 June 2011 marked the invasion of Georgian brand Maicco in the UK fashion scene.Supported by model, entrepreneur, and event director Jessica Minh Anh, who started the new wave of young and multi-talented fashion show organisers, Maicco’s, who accessorized the dresses with pieces of musical instruments, added a jazzy feel to the night. “The collection is very creative, interesting, and colourful. You can’t help but falling in love with it” said BBC WM news reporter.The grand catwalk also showcased stunning collections by top names like Paul Costelloe, Charlotte Sparre, Jaeger London, Addy van den Krommenacker, Gregor Clemens, Danny Tang among many others from over 13 fashion capitals all in one night at the famous Lancaster Ballroom. It combined various styles and textures from posh and powerful dresses by Irish designer Paul Costelloe to the summery and colourful silk dresses by Danish designer Charlotte Spare. Romanian brand Mad Hatter Boutique brought to the show elegant yet very intriguing and imaginative fascinators that tell different stories. Dutch celebrity designer Addy van den Krommenacker brought luxurious couture to the catwalk in the grand fi nale. The highlight of the show was the 11 looks from Macco, which uses the atypical colour palette that includes terracotta, dark greens, gunmetal grey and a host of others to make a statement and gave the entire collection a ‘jazzy’ feel and a breathof fresh air.“What is so special about the show is that J Models took care of the whole backstage preparation and put designers at ease. It was defi nitely a challenge as designers are used to being hands on but I was very much enjoying myself front row. It was an honour to be selected for J SummerFashion Show,” said Maicco.Besides over two hundred international designers, brand managers and representatives

from UK fashion and beauty companies and PR agencies, British TV faces like Jayne Wisener, Kelly Adams, Dawn Porter, and Shaun Smith, VIPs on the red carpet included country ambassadors from Austria,Argentina, Vietnam, Ireland, Lithuania, Romania, Trinidad & Tobago, and Kyrgyzstan.“I love Maicco’s collection, which stands out as the individual in the crowd. It’s charismatic and experimental” said Jessica Minh Anh. We are looking forward to seeing what Maicco has in store for us in his next collection.

Jessica talked with Maicco at the show.

How did it feel showcasing in London at J Summer

Fashion Show?

What is so special about the show is that J Models took care of the

whole backstage preparation and put designers at ease. It was

defi nitely a challenge as designers are used to being hands on but I was very much enjoying myself

front row. Also the location where the J Summer Fashion Show was

held was very iconic.

What are the unique elements of your brand?

Maicco outfi ts are handmade which gives me an opportunity to add geometrical fi gures and

different objects to the costumes. Also I love using distinct colors

and mixing them with each other. I think this makes my collection

unique.

What was the inspiration or this collection?

I live in the three-Seven; The seven days of the week, The seven notes of the gamma and the seven

colors of the rainbow. This all together creates the harmony.

Everyday I have a different mood and each of the day, has its own

sonorousness and color, that’s why each of my outfi ts are different

from each other. This feeling gave me the inspiration for my latest

S/S 2012 collection.

Have you got an idea about the next collection?

Of course I have a lot of ideas. I am going for a vacation and when I turn back I will start making the

A/W collection.

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TbilisiKHATIA

PSUTURI

COOLER THAN USUAL

f ashion is not something that exists in dresses only. Fashion is in the sky, in the street; fashion has to do with ideas, the way we live, what is

happening, Coco Chanel once famously said, proving that style has a greater importance than the brand of what we wear.Street style is often much more important and infl uential than people think, as most people don’t even remember what designers say and most fashion trends come not from design studios but directly from the streets. Tbilisi is one of the best examples of street style trends as most of the people in the city prefer to wear what they see others wearing in the street.Long trousers, totally covered tops and dark colours still dominate, in general, the street style of Tbilisi citizens. Of course there are some true fashionistas in Tbilisi who are completely aware of the latest fashion trends, but then there are some who simply use light colours and short skirts to beat the heat and don’t think seriously about fashion trends.

street

BY TAKO KHELAIA

PHOTOS BY KHATIA KHATIA PSUTURIPSUTURI

i f you take a look at Tbilisi street style you will notice that black is still the dominate colour among Georgians even during the hot summer. It’s almost necessary

to have a good suntan for a person to be as stylish as they can possibly be. So half of Tbi-lisi has a suntan and wears such clothes that highlight their tanned skin.Most Tbilisi females love skinny jeans. Jeans remain one of the best outfi t choices for Tbilisi street style. Cat’s Eye sunglasses and Ray-Bans are some of the most necessary accessories to look good in Tbilisi’s streets at the moment.Stripes are once again popular in Tbilisi, espe-cially among teens. Colourful shoulder bags are now the favourite and most necessary accessory for girls. Many of them wear ballet pumps and Converse trainers on even the hot-test days.Most of the people interviewed by The WEALTH magazine say that they spend from 400 to 500 GEL per month on buying clothes. Online stores have also become quite popular among Georgians, mostly eBay, Amazon, Forever 21 and Victoria’s Secret are dominating. “In summer I always try to feel comfortable and wear cool clothes. I prefer to wear colour-ful, short dresses. I usually look through for-eign fashion magazines, watch fashion shows and that’s how I decide what would be better to wear in the street. I always try to look good. My favourite brand is Diesel and that’s what I usually wear,” Tamta Khurtsilava, 23.

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“I don’t actually use online shops to buy clothes from because it’s always a problem for me to be sure I am getting the right size. I buy most of my clothes in Georgia, but if I am abroad I always try to buy as many clothes there as I can. I usually spend half of my salary on clothing,” said Lika Chitaia, 22.“I order clothes from online shops, mostly from American websites. During a season it costs me on average 200 USD to order clothes. I may not wear clothes that cost thousands but they look good on me. It’s important to have a good sense of fashion and style. I often read fashion magazines and watch FTV in order to see the latest, modern fashion trends. Sometimes I see something original on someone in the street and then try to buy the same thing to emu-late the look,” said Sopo Sidamonidze.Mango, Zara, H&M, United Colours of Benetton, Levis and Diesel are among favourite brands of Georgians.

PHOTOS BY KHATIA PSUTURI

ARCHIMEDES GLOBAL GEORGIA TO ENTER THE RETAIL INSURANCE SECTOR

GIORGI SAGANELIDZE, DEPUTY DIRECTOR ARCHIMEDES GLOBAL GEORGIA.


|FINANCIAL MAGAZINE

Archimedes Global Georgia, only insurance company in Georgia that specializes in corporate health insurance, will provide services for the retail market by the end of the year.

By entering the retail market, the company plans to increase its market share of 7-8% by at least 1.5%. Moreover, with the new offers the company intends to capture 10-12% of the retail health insurance market. “The company’s vision is that the future of insurance in Georgia is in the retail health insurance sector. Consequently we intend to provide different types of products for those who are not yet insured,” said Giorgi Saganelidze, Deputy Director of Archimedes Global Georgia.“In Georgia there are still many who have not experienced the benefi ts of insurance and have diffi culties in taking such a decision. We are working on serious projects which will be available to any individual who is willing to care about his health and future,” added Saganelidze.The product will be targeted at all income segments. Additional benefi ts will include the coverage of expenditures for treatment in foreign countries. Archimedes has already signed a document with a company in Israel. If consequent treatments are not conducted in Georgia, the company takes the obligation to send the patient to a foreign country. Archimedes has already had cases of reimbursing the foreign treatment expenditures of corporate clients.Archimedes Global Georgia is a 100% subsidiary of Archimedes Global, operating in Georgia, Greece and Kazakhstan, soon to enter the Ukrainian market. The company was founded in 2007 and is a 100% Israeli investment. “The share of Archimedes Global Georgia in the whole group is approximately 60-70%. The company has managed to develop farther than the other two representative offi ces,” said Saganelidze.Archimedes Global Georgia only specializes in health insurance and according to Saganelidze intends to focus on this sector over the following two years. Currently the company holds a 7-8% share of the health insurance market. The entity serves more than 120 companies with more than 120,000 insured individuals. The most demanded products at Archimedes are those which cover all important, urgent cases as well as planned check-ups in the case of worsening health. The price of the packages is between 25-35 GEL monthly. There are several reasons why an individual or organization should insure at Archimedes Global Georgia. “Firstly, 90% of those employed at the company have huge experience in the insurance market having worked not only in Georgia but in Europe and Western countries too. Secondly, our company is the only one which has a special quality control department and

cares for its clients fully,” explained Saganelidze. “Moreover, one of the things which differentiates Archimedes from other companies is that almost 80% of clients served are free to choose from which licensed entities to apply for service, covered by a contract.” The total net profi t of Archimedes Global Georgia reached 1.6 million GEL as of 2010. The company managed to reimburse approximately 6 million GEL in 2010, while according to fi rst and second quarter results of 2011 the company has already reimbursed 2.5 million GEL.Saganelidze explained that the profi tability of the company

was governed by several reasons. “The company changed a whole range of directions in operations, recruited more experienced staff and changed its management structure, all of which led to profi tability. The company intends to have improving results with each year that passes,” Saganelidze said.“The demand for insurance products has changed rapidly over the last two years in Georgia. This all started when the

Government launched several projects for health insurance popularization including Cheap Insurance. Now we see that demand has increased not only for products but quality too. Health insurance currently holds 70% of the total insurance market,” Saganelidze said.In Georgia there are on average 1.5 million insured individuals. Out of them approximately a million are engaged in state insurance programmes while 700-1,000 thousand are insured by private companies, leaving a big market for insurance. “There are many SMEs for which the accessibility of insurance is diffi cult compared to large organizations, as the prices and coverage is much higher. Consequently a large number of SME are uninsured. Moreover there is a big portion of people, including in the retail market who do not have the wish nor desire to receive the service,” Saganelidze explained.IFC, a member of the World Bank Group, invested 3 million USD in equity in Archimedes Health Developments to help expand access to health insurance and health services in Georgia. This is the fi rst ever direct investment of IFC in the health insurance sector.“This amount will be used for building two hospitals in Tsnori and Lagodekhi, as well as the development of modern technologies necessary for each organization. At this stage, this is the fi rst direction of the funds’ allocation,” said Saganelidze.Archimedes Global Georgia won a government tender for the reconstruction of two 20 and 25 bed hospitals in Tsnori and Lagodekhi respectively. The total investment in the hospitals exceeds 5 million USD. The hospitals will be ready by the end of the year and will enter into use - one on the fi rst of December, while the other at the beginning of 2012.

“HEALTH INSURANCE CURRENTLY HOLDS 70% OF THE TOTAL

INSURANCE MARKET.”


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MICHAEL SAAKASHVILI I also want to note that in Kutaisi we build the new Chancellery. When I said that we are going to sneak in to Kutaisi, some people, who do not want to understand correctly what we say, said that we were sneaking out of Tbilisi. I want to disappoint them - the Government of Georgia will not sneak out or go out. Of course, the Government of Georgia will continue functioning in Tbilisi, but we shall as well “sneak in” to Kutaisi, as the Government of Georgia shall be everywhere.

SATAPLIA Complex of Imereti caves is located at a distance of 10 km from the town of Kutaisi. The Sataplia itself is located at 500 m above sea level. 98 % of its territory is covered with subtropical young forest of Colchic type. Cave is famous for fi ne speleothems and the nearby dinosaur footprints. The cave tour enters the through-cave on one hillside, crosses the hill underground and returns on the surface where the dinosaur footprints can be seen. The name Sataplia is based on the Georgian word tapli (honey), the place was well known for its bees and the locals came here to colect honey.

PHOTO BY PRESIDENT.GOV.GE


|FINANCIAL MAGAZINE

“Mestia will become the favorite place for many tourists soon. The major

thing is everyone to have a chance to come here for holidays and it could be available for the students, youth and

Georgian sportsmen”

GENERAL CONDITIONS:The Mestia–Atsvali Study Area has good north slopes from the Town of Mestia at 1,400 meters up to the Atsvali Plateau at 1,880 meters with slopes then rising up to a mountain peak at 2,388 meters.Total vertical drop in Mestia is 988 meters, which would qualify for an Olympic or World Cup Men’s Downhill piste.Average temperature: winter –6.4°C / summer +16.4 °CAverage number of daylight hrs – 12.56 hours/dayDescription:Mestia Comprehensive “Development Vision, General Planning and Specifi c Master Plan” prepared by international consultant “EcoSign – Mountain Resort Planners” Ltd, Canada and Geographic,GeorgiaLand for nominal price – 1sq.m =1 GEL/0,6 centRehabilitated roadsMestia International AirportDevelopment area available for hotel and residential multiple dwelling units in the form of townhouses, single family/chalets and summer recreation homes.Reconstructed city centreThe new ski cable way constructed by Leitner-Poma Inc. Length 1400 meters. This N.1 fi xed grip quadruple chairlift is currently being installed at a capacity of 1,000 passengers per hour.Three main ski trails available with diffi culty levels: average (2670 meters) and above average/sports style

(2600 meters)2 Ski lift under constructionImproved communal infrastructure New road constructed from center of Mestia to the ski-stationReconstructed buildings in the city centerReconstructed historic and architectural heritage – “Svaneti Towers”

MODERN INFRASTRUCTUREMestia International Airport-“Kenn Borek Air”Flights operated by Canadian airlineBatumi International AirportNew Poti International Airport (by 2012)New Anaklia – Zugdidi Airport (by 2012 )Kutaisi International AirportZugdidi – Mestia rehabilitated road

EASY ACCESSTbilisi – 497 km – Capital of GeorgiaKutaisi – 244 kmZugdidi – 136 kmPoti – Biggest Port (FIZ) – 208 kmBatumi - Resort and Entertainment Centre – 278 km

MAIN HOTELS:4 star hotel “Tetnuldi “ 34 rooms3 stars hotel “Mestia” 30 rooms3 stars hotel “Svaneti “ 25 rooms

Over 45 Guest Houses in the villagesTotally: 429 number of bedsAccommodation price range for single room40 – 120 GEL

BASIC TOURIST INFORMATION:Transportation – SUVs and mini busses availableGuided cultural tours and sports routesDifferent Museums: Mestia Historical–EthnographicMuseum, Historical– Ethnographic Museum (Ushgulibranch) etc Historical Sites – Protective “Svan” Towers come from the early middle ages and are on the list of UNESCO World Heritage Sites. They were primarily used as defensive structures during invasions. Most of these towers are 20-25 meters tall and have 4-5 fl oors.Mestia has a great potential to become a place for year–round fun and adventure.Resort guests and day use visitors can spend holiday and vacation time in a unique environment that offers a wide variety of seasonal, active and passiverecreation and leisure activitiesSummer in Svaneti offers an array of stunning landscapes, lush and wild fl ora, rare wildlife, fl owing rivers, tranquil lakes and big blue skies.During the summer this gorgeous setting presents countless opportunities for outdoor fun and adventure, including hiking, horseback riding, rafting, fi shing, hunting, camping, exercises in nature and more.

PHOTO BY PRESIDENT.GOV.GE

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THE NORTH USHBA MOUNTAIN (4,694 M) IN THE CENTRAL CAUCASUS, GEORGIA, DURING THE 2005 CZECH EXPEDITION. PHOTO BY JAREK VRUBL

Proposed activities for winter season are Heli-skiing & free-ride, downhill skiing, snowboarding, snow tubing,Nordic spa, ice skating, climbing, kid’s snow play zone, free-style snow parks and etc.Combination of favorable natural conditions and infrastructure create conducive environment for the development of Mestia.The concept of the resort area consists in combining winter and summer recreation through the expansion of an improved ski and snowboarding area in winter with riding, rafting and other summer recreational activities.The resort Vision Master Plan is developed and designed by Canadian company “Ecosign”, mountain resort planners with 35 years experience in this industry.The Mestia-Atsvali Resort Concept has been proposed in two main locations. The ski area and the new Alpine Village area proposed in Atsvali, and an additional village and base is proposed near Mestia Town.A detachable gondola or a pulse gondola with 4 groups of 3 eight passenger cabins per group could act as a “peoplemover” to connect the Town of Mestia with the Alpine Village at Atsvali Plateau.A resort base will include hotels, ancillary commercial facilities, day-use parking, training center, residential multiple dwelling units in the form of townhouses, single family/ chalets and summer recreation homes.Total Net Base Development Area is 96.8 Ha.The Mestia-Atsvali Resort Base could generate a total of over 9,000 skiers from parking and overnight accommodation, which balances with the mountain SCC of 9,000.

The Mestia-Atsvali zone has 8 terrain pods, which have the potential to service approximately 9,740 skiers/snowboarders per day.In order to develop this area at least 14 hectares of base lands would be required.Resort base area development includes access roads, overnight accommodation, commercial space, day-use parking and village pedestrian space.

BASE LAND USE ACCORDING TO TYPES:Village – 29.1Ha; Number of Beds 8 768Main staging zone for skiing, as well a center for shopping, restaurants, pedestrian space and other resort activities. building height is limited to 4 to 5 fl oors and the ground level is reserved for non-accommodation uses.Multi family/townhouses – 26.4Ha; Number of Beds 3 792Attached walk-up units that have their own garage or surface parking area. Townhouses can be up to 3 fl oors.Single family/chalets – 47.9Ha; Number of Beds 3 969Privately owned detached units.Summer recreation homes – 23.75 HaNordic facility – 30HaIncludes amenities such as a sport and fi tness center or cross country skiingcenter and training facility.Day use parking – 3.8HaDay visitors arrive by car or bus to the resort’s parking lots from where they can access the resort’s recreation facilities and commercial amenities

Winter/ski season lasts for 5 month, from December to April.

AVERAGE TEMPERATURE IN WINTER– (-6.4)°CAVERAGE NUMBER OF DAYLIGHT 12.56 HOURS/DAYTOTAL SKIABLE AREA (HECTARES) 188 HATOTAL VERTICAL DROP - 988 METERSHIGHEST ELEVATION - 2300 METERSLOWEST ELEVATION - 1400 METERSTOTAL NUMBER OF SKI LIFTS - 6SCC - 9 000TOTAL HOURLY CAPACITY - 13 242TOTAL VTM/HR (000) - 5 846

The Atsvali ski area mountain development concept, at build-out, will have a total of 6 major lift systems for skiing including a double platter lift and fi ve detachable quadruple chairlifts.After construction lifts will accommodate a total of approximately 9,000 skiers at one time.Two moving carpets would be installed in a beginner/teaching zone.Total Skier Service Floor Area will be 9,172 square meters.

GEORGIAN NATIONAL INVESTMENT AGENCYMINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT OF GEORGIA12 CHANTURIA STR. 0108 TBILISI, GEORGIATEL.: +995 322 433 433E-MAIL: [email protected]

KINGDOM OF ONLINE SHOPS

AT OUR MULTIVENDOR SHOPPING MALL YOU CAN OWN YOUR STORE AND SELL WHATEVER YOU WANT

WHATEVER YOUR WANT

WE OPERATE THE FIRST ONLINE SHOPPING MALL IN CAUCASUS

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BABILON.GE

S H O P P I N G K I N G D O M

EVER

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ONLINE

ONLINE


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R oniko is operating since 1995 on Georgian market. Presently company has 14th optics shops, where more than 80 famous brands are presented. Roniko’s portfolio is enriched by well-known, high-

premium class brands like Cartier, Chopard, Bvlgari, Mont Blanc, Chanel. Also Roniko is an exclusive and offi cial distributor of world-known and bestseller brand RAY-BAN, the global leader in premium eyewear market and by far the best-selling eyewear brand in the world. Company celebrated its 15th anniversary last year. Roniko offers high-quality, complex optical service, including consultation, eye diagnostics, fi tting and selection of spectacles. Each shop of Roniko has professional team. Roniko optics shops have ophthalmological cabinets. Eye diagnostics is performed by modern equipment, and workshop has Essilor’s high-technology equipment.Roniko offers high-quality products for vision correction. These are the contact lenses produced by Swiss company Ciba Vision and lenses for spectacles made by world leading French company Essilor.It is already 15 years as Roniko is permanent partner of worldwide Italian optics company Luxottica Group, which produces eyewears for famous designers: CHANEL; BVLGARI; PRADA; MIU MIU ; RAY-BAN; VERSACE; D&G; PERSOL; DONNA KARAN; KILLER LOOP; OAKLEY; VOGUE; RALPH LAUREN, POLO; REVO; TIFFANY&Co; STELLA McCARTNEY – you can see all these brands at Roniko shops.From 2007 Roniko became the partner of Cartier in Georgia. In the same year the eyewear of Cartier, frames and sunglasses, were represented at the net of Roniko. From the day its existing Roniko had visited more than 30 optics exhibitions. These are the largest exhibitions in Italy, MIDO and in France, SILMO. These exhibitions represent all novelties of optics and fashion industry.Roniko, as innovator and fashion follower. always timely and successfully offers to the customers all novelties of optics fashion tendency and what is most important the prices are always realistic. During last eight months some new brands were added to portfolio of Roniko - Stella McCartney , Swarovski, Dsquared , Silhouete, Polaroid. 3 new optics shops were opened at:1. Marjanishvili 16;2. “Tbilisi Central”3. Chavchavadze 16

Roniko is your best friend in the world of optics!w w w . b l o g . r o n i k o . g e ; w w w . f a c e b o o k . c o m / r o n i k o o p t i c s

OPTICSBest choice for everybody!


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129 a, Aghmashenebeli Avenue, GeorgiaPhone: +995 32 2 18 33 22

BY T

AKO

KHEL

AIA

O ne of the most Luxurious men’s clothing stores in Georgia, Monte Napoleone, plans to add Tod’s, Brunello Cucinelli, Pal Zilleri, Isaia and PT01 to the list of its in- store brands by

September of this year. The store alreadyhas number of clients who spend over 5,000 GEL. According to its offi cials the shop is oriented at businessmen and people of higher incomes.Monte Napoleone was opened in Tbilisi on 5 April this year. It’s an Italian - French brand store dedicated to men which represents such top brands as Zilli, Brioni, Kiton, Corneliani, Canali, Moreschi, Ralph Lauren and Rocco P. According to Kristi Yandala, representative of Monte Napoleone, most are pure Italian brands and the store has certifi cates of each of the brands that prove that these are genuine and original products. “Zilli, Brioni and Kiton produce hand-made clothes and are more expensive than other brands. These brands are very popular with our customers. Our clients don’t have to go abroad as they can feel as if they have visited Italy right here in Georgia. Under the brand of Zilli we exclusively offer our customers such clothes and accessories that are made of crocodile, python and ostrich skins. These kinds of products aren’t widespread in Georgia at all. We have belts that are made from the skin of just one crocodile, which is a very luxurious and expensive product,” Yandala said.According to store offi cials at the beginning they were afraid that due to the slightly high prices they wouldn’t attract a high number of clients, however at the moment the Monte Napoleone store is much more popular and well visited.“Brioni, Kiton and Zilli are some of the most expensive clothing brands at our shop, because they are handmade and the most expensive textures are used in creating them. One suit by Brioni needs 20 people to work on its creation. The jacket takes 48 hours to be made and the trousers - 24 hours. It requires hard work. The brand Kiton is handmade as well. The price of Brioni suit starts from6,000 GEL and goes up to 9,000 GEL. Kiton suit prices start from8,000 GEL and go up to 12,000 GEL. The prices of Zilli belts start from 1,800 up to 4,500 GEL,” Yandala said.“Most of the consumers are completely sure of what they are going to buy when visiting us. Brioni is very popular among our customers. We also have Cornelliani and Canali suits which

start from 2,500 GEL and have some handmade elements as well.“Our consumers are mostly businessmen, members of parliament or Georgians who live abroad and are visiting Georgia temporarily. Most of our clients compare our prices to prices in Moscow and say that we offer them much more competitive prices. We are visited by Americans and Italians who appreciate the fact that Italian brands are available in Georgia.”Via Monte Napoleone is the name of the most fashionable street in Milan, where are located well-known fashion houses, boutiques and showrooms of the most famous Italian designers whose the best brands are represented in the showroom Monte Napoleone..According to store offi cials, Monte Napoleone has the highest quality service and serves its clients with great pleasure and respect. If a man brings a woman with him to the store, the Monte Napo- leone Manager tries to entertain her while the man chooses clothes. The store offers clients real Italian coffee and different juices while shopping.“Foreign businessmen spend much time in Georgia when conducting business meetings in the country. They are able to buy the highest class clothes here and don’t have to fl y back to another country or bring back clothes with them.”“We don’t aim to interrupt or hassle our clients; they are completely free to browse at their own time in our shops. If someone needs help and wants our advice then in this case we are there to help. We are also visited by young people as we have a special line for them. Our young customers usually need more advice from our staff when shopping than our more mature customers.”“Men in Georgia actually pay a great deal of attention to their clothing; you get great queues of people when new collections come in. At the moment we have 25 % discounts on different brands. We give information to our loyal clients via e-mail. We give them a permanent 20% discount card as a present if they buy clothes over 5,000 GEL and automatically become our VIP clients. “70% of our clients are Georgian men and 30% of our clients are foreign, but these are foreigners who know Georgian very well.”7 consultants and 1 Manager work at Monte Napoleone. The store plans to arrange an event specially for its loyal clients soon.

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ACCORDING TO INTERNATIONAL COCOA ASSOCIATION IN JULY, THE ICCO DAILY PRICE AVERAGED US$3,167 PER TONNE, UP BY US$151 COMPARED TO THE AVERAGE PRICE RECORDED IN THE PREVIOUS MONTH (US$3,016), AND RANGED BETWEEN US$3,050 AND US$3,266.

The upward movement in cocoa prices recorded on both the LIFFE and ICE futures markets at the end of the previous

month continued into early July. Although a larger than anticipated global surplus is expected for the current crop year, the prospects for the size of cocoa output for the next crop year (2011/2012) do not appear to be favourable and reports of a supply defi cit may have supported cocoa prices. As depicted in Chart I, cocoa prices in London and in New York attained their highest levels of the month on 5 July, at £2,044 and US$ 3,252 per tonne respectively. In the subsequent trading sessions, the lack of fresh fundamental news and continuous reports of ample supplies of cocoa beans from West Africa led to bearish sentiments in the markets. Within a week, cocoa futures lost four per cent in London, down to £1,957 and fi ve per cent in New York, down to US$ 3,084. Conversely, as shown in Chart III, the value of the commodity complex rose by 0.4% during the same period. However, by the third week of July, cocoa futures rallied in reaction to the publication of favourable cocoa grindings data from Europe and North America. Cocoa prices fell to their lowest levels at the end of the month, to £1,879 in London and to US$3,018 in New York, as a result of the confi rmation of higher arrivals and purchasing fi gures from Côte d’Ivoire and Ghana.In total, cocoa prices fell by fi ve per cent during the month under review, while the value of the commodity complex rose by almost four per cent.

CERTIFIED WAREHOUSE STOCKS OF COCOA BEANSCocoa bean stocks in European warehouses had been depleting in previous months. However, this trend reversed andin July, certifi ed warehouse end-of-month stocks in Europe increased to 177,510 tonnes (up by about 10,000 tonnes compared to the previous month). The warehouses may havebenefi tted from the resumption of operations in Côte d’Ivoire.US certifi ed warehouse end-of-month stocks continued their upward trend and rose to 264,000 tonnes (up by 29,000 tonnes).The stocks development in the two markets has been accompanied by an increase in the price differential between the two markets. The price premium fetched by the London cocoa futures market against the New York market strengthened in comparison with the previous month, and reached US$ 67 by the end of the month.

SUPPLY AND DEMANDAccording to news agency data, cocoa arrivals to ports in Côte d’Ivoire were nearly 1.368 million tonnes as at the end of July compared to 1.1 million tonnes during the same period for the previous season. However, exports of semi-fi nished products from Côte d’Ivoire have decreased. The political uncertainty in the country over recent months had resulted in a temporary closure of many grinding facilities.In Ghana, cocoa purchases continued to increase at a strong pace. Although the country had targeted one million tonnes for the 2012/2013 season, reports indicated that a record output of more than one million tonnes is expected by the end of the 2010/2011 season.On the other hand, in Indonesia, erratic weather

conditions and fungal diseases have led to a decrease in cocoa production for the current season. Output is expected to fall. Grindings in both Europe and North America increased in the second quarter of 2011. The European Cocoa Association reported that cocoa grinding activity had risen by 8.3% to 355,593 tonnes in Europe while the National Confectioners’ Association reported a grindings increase of 6.22% to124,970 tonnes for North America.

WHO ARE THE MAIN MANUFACTURERS OF CHOCOLATE IN THE WORLD?

COMPANY NET SALES 2010 (US$ MILLIONS)

KRAFT FOODS INC (USA) 16,825 MARS INC (USA) 15,000NESTLÉ SA (SWITZERLAND) 11,265FERRERO GROUP (ITALY) 8,763HERSHEY FOODS CORP (USA) 5,703CHOCOLADEFABRIKEN LINDT & SPRÜNGLI AG (SWITZERLAND) 2,602YILDIZ HOLDING (TURKEY) 2,180AUGUST STORCK KG (GERMANY) 2,000ARCOR GROUP (ARGENTINA) 1,650MEIJI HOLDINGS (JAPAN) 1,599


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WORLD’S MOST EXPENSIVE WHITE WINE BOTTLE SOLD A 200-year-old bottle of 1811 Chateau d’Yquem has set a new Guinness World Record for the world’s most valuable bottle of white wine, after it was sold for 75,000 pounds.Wine connoisseur and private collector Christian Vanneque purchased the rare vintage from Antique Wine Company for his new establishment, SIP Sunset Grill in Bali, Indonesia, where it will go on display when the restaurant launches in September, reported the Daily Mail.The costly tipple is prized as one of the greatest wines in the history of Bordeaux and one of the supreme vintages ever produced.It was rated the ultimate “100 points” by wine critic Robert Parker and again 100 points by The Wine Spectator’s Per-Henrik Mansson in 1999.The majority of white wines are not meant to age. In fact, most of them expire in the bottle after just a few years. But Chateau d’Yquem is the exception.The high levels of residual sugar in the wine, combined with the grapes’ natural acidity, serve as preservative agents, which protect it from spoilage.If stored properly, d’Yquem can age for indefi nite periods. There are only a few wines in the world that have these unique properties.

UAE MAN BUYS WORLD’S MOST EXPENSIVE CARA UAE resident has bought a custom-made Bugatti L’Or Blanc – the world’s most expensive car in the world – for an estimated $2.4 million (Dh9 million). According to a Bloomberg report, Bugatti – which makes the world’s fastest cars – has tied up with German porcelain maker KPM in order to fi t in a porcelain caviar tray in the custom-made car. There is little known about the owner of the car except that he owns around 200 exotic cars.The streamlined vehicle, which has a white exterior with royal blue lines, has also been fi tted with porcelain wheel badges, fuel caps and oil caps.The car was introduced recently in Berlin, Germany.The most expensive car title was earlier held by Bugatti 300 Veyron 16.4s with an estimated price of $1.74 million.

LONDON, PARIS, MOSCOW - MOST EXPENSIVE LUXURY SHOPPING STREETS IN EUROPEThe global market for luxury goods has emerged from the fi nancial crisis signifi cantly faster than expected, according to a study of Europe’s most important luxury shopping destinations by Jones Lang LaSalle recently released entitled ‘Glitter and glamour shining brightly - the 100 most renowned luxury brands and their presence in Europe’s metropolitan centres’ London’s New Bond Street is the most expensive luxury shopping street in Europe, with top rents reaching €7,900 per sq m. On Avenue Montaigne in Paris rents reach up to €7,500 per sq m and on Moscow’s Stoleshnikov Lane rents are as high as €7,015 per sq m.Leading international luxury groups have recently reported double-digit sales growth or even record annual sales. Companies’ own store networks have played a signifi cant role in accounting for this success, with business also driven by Asia, particularly the booming Chinese market. The luxury retail sector has also bounced back in Europe; in 2010 one-third of total revenue for some brands was generated with the highest sales recorded in Italy, followed by France, the UK, Germany and Russia.The highest density of international luxury labels can be found in Paris. The top 100 luxury labels operate more than 150 luxury stores, proving the French capital remains Europe’s uncontested centre of fashion and luxury shopping. Only London has a similar density with 125 luxury outlets from the top 100 brands. Milan has just under 90, while Moscow and Rome follow behind with 66 and 59 luxury label stores, respectively.

Starbucks CEO Howard Schultz offi cially rejoined the billionaires’ club since he fell off the wagon in 2007, according to Forbes.Schultz last appeared in our billionaire ranks in 2007 with a net worth of $1.1 billion, enough to be ranked no. 840. From then on, the coffee maker’s shares began a long downward spiral, losing about 80% of their value by late 2008 ... The stock nearly doubled since last fall and recently hit an all-time high.Meanwhile, the Wall Street Journal reports that earlier this month, Starbucks workers in Chile went on strike over their $2.50/hour wages; and yesterday members of a IWW Starbucks Workers Union in New York City protested in solidarity. IWW members are planning another event near the Starbucks headquarters in Seattle.Schultz has come a long way since he grew up in the Brooklyn housing projects. Today, in addition to his CEO job, he co-runs the venture capital fi rm Maveron; and earlier this year he joined Groupon’s board of directors.

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The insurance industry is back to growth, as shown by Swiss Re’s annual assessment of global insurance markets for 2010. Premium volume grew in three quarters of the 78 markets covered in the publication. Growth was particularly strong in emerging markets. At the same time capital and solvency in the insurance industry improved robustly but low interest rates still had a negative impact on profi tability.According to Sigma study, world insurance premium volume increased 2.7% on an infl ation-adjusted basis. Life premiums rose by 3.2%, non-life by 2.1%. Premium growth in emerging markets accelerated. The industry’s capital and solvency improved, while low interest rates weighed on investment income.

GLOBAL LIFE PREMIUMS ROSE BY 3.2%

Life insurance premiums globally grew 3.2% to USD 2 520 billion in 2010. Growth was especially strong in Asian emerging markets and robust in some large European markets. In the US and the UK, premiums declined, though at a more modest pace than 2009. While low interest rates negatively impacted life insurers’ profi tability, they contributed to a strong improvement in the life industry’s accounting capital position by increasing the value of life insurers’ bond portfolios.Daniel Staib, one of the authors of the new sigma study, says: “The dominating picture is that the industry is on the way back to the long-term growth trend. In fact, in some continental European countries, growth in the past year could be said to be very strong because sales of single premium products with comparatively attractive guarantees increased strongly.”In emerging markets, life premiums rose by 13%. South & East Asia was the region that had the strongest growth, at 18%, led by China, with strong demand for both traditional and investment-linked products. Latin America and the Caribbean were not far behind, at 12%, led by Brazil.

NON-LIFE PREMIUM INCREASED BY 2.1% IN 2010

Global non-life insurance premiums rose by 2.1% in 2010. In emerging and newly industrialised Asian countries, the strong economic rebound increased demand for insurance cover. Premium volume rose in Europe and the US as well. Industry capital continued its positive development and rose

to a record high in 2010.Underwriting results deteriorated by most in the US and turned negative in large European markets, in the latter case due to dismal motor results. In the eight largest markets, premium income did not fully cover claims payments and other costs for the second year in a row. “The average combined ratio of these leading markets worsened to 103%, compared to 101% in 2009. Given recent catastrophe loss events, it is clear that global underwriting results will deteriorate further in 2011. This indicates that prices are inadequate. In some markets, such as Italy and the UK, rates began to mount, most notably in the personal motor business, signaling that the underwriting cycle is at long last beginning to turn,” says Staib.

OUTLOOK: STRONG FOCUS ON GROWTH IN 2011

Despite lingering uncertainty, the economic recovery should continue and bolster premium growth in the life and non-life sectors globally in 2011. However, investment income in both life and non-life sectors will remain low given that interest rates will only rise slowly, at best.“In terms of the mature markets, growth in life insurance is expected to turn positive in the US, while in Western Europe, premium growth could slow down slightly, as rising interest rates will make life policies with interest rate guarantees less attractive,” says Staib. Over the longer term, the fact that our ageing societies increasingly need provisions for old age continues to be positive for life insurers. In non-life, the trend is towards higher premium growth in 2011. This trend will strengthen as premium rates begin to get adjusted upwards.The global market share of emerging countries is expected to continue to increase strongly from today’s 14% over the next ten years. China is likely to become the second largest insurance market within a decade (in 2010 it is the sixth largest).The main risks to the outlook are an escalation of the euro sovereign debt crisis or a major oil shortage caused by turmoil in major oil producing countries.The study is the fi rst public assessment of the performance of global insurance markets in 2010. The 78 markets, where data or estimates for 2010 are available, account for 98% of global premium volume. Overall, the report is based on 147 insurance markets.

Georgian egg companies decreased the production of eggs since 2009 as Georgia was experiencing overproduction on the local market. The retail price of the product has increased by 20 percent however.Whereas in 2009 430.6 million eggs were produced, in the year 2010 only 397 million eggs were manufactured according to the National Statistics Offi ce of Georgia.“The Georgian market is saturated with locally produced eggs,” said Kakha Megrelishvili, head of the egg realization department at Koda, the largest egg producing company in the country holding 40% of the market.“The information spread in many print media facilities about imported eggs is partly false when it states that the reason eggs are imported is because they are solely for incubation purposes. The only time when a small percentage of eggs get imported is during the Easter Holidays and New Year as some importers know that demand will be increasing signifi cantly during that period,” claims Megrelishvili.Currently the market is occupied by 7 large and 4 small poultry farms which have recently been added to by one new company “Dezebiani Mamblebi”, located in Imereti.The largest egg producing companies remain: Koda (40%), “Dilis Produqtebi”, “Patardzeuli” and “Kumisi”.Koda sells 8 million eggs a month and the factory’s total capacity to produce eggs is 115,000,000 per annum whilst overall eggs produced locally amount to slightly over 400 million.Despite the fact that the local market is getting more and more saturated, the companies still fi nd it diffi cult to export eggs to neighbouring markets.Throughout 2010 only 195,000 eggs were exported.Out of imports, which increase during holidays (New Year and Easter), the largest share of them come from Ukraine and Bulgaria - 5.1 million and 1.6 million respectively. The other egg export countries to Georgia are the Netherlands - 18,000, Turkey - 107,000, Armenia - 2.7 million and Hungary - 12,000.By April of 2011 already 5 million eggs had been imported and almost all of them from Ukraine - 4.5 million.

INSURANCE INDUSTRYIS BACK TO GROWTH

Rezidor has Opened Radisson Blue - in Batumi, GeorgiaThe Rezidor Hotel Group, one of the fastest growing hotel companies worldwide, has opened its fi rst property in Batumi: The Radisson Blu Hotel, Batumi features 168 rooms and is located in the city center alongside the famous Batumi Boulevard. The hotel is set to offer its guests one of the most luxurious bases from which to explore the stunning Black Sea coast. It is conveniently located in the main business district of Batumi within 10 minutes drive from Batumi International Airport and 15 minutes drive from the Railway Station. The beach and Seaside Boulevard – one of the main attractions of the city – are just a few walking minutes away.

The Radisson Blu Hotel, Batumi offers contemporary rooms including Standard rooms, Suites and Business Class rooms. Designed for style and comfort, the bedrooms feature trendy and modern interior design, and come equipped with complimentary high-speed Wi-Fi internet and world-class bath amenities by Anne Semonin. The majority of rooms offer breathtaking views over the Black Sea.

Two restaurants and three bars pamper every palate: “Medea” Restaurant serves Radisson Blu’s signature “Super Buffet Breakfast” and is open as well for lunch and dinner. It also offers a live cooking station and a wonderful terrace towards the sea. “Medea” Bar with a cozy atmosphere is a perfect place at the hotel’s lobby level. “Clouds”, the grill Restaurant & Bar located on the 19th fl oor in a modern and sleek environment, combines equally stunning views, grilled cuts and selected wines from Georgia and all around the world.

The exclusive Wellness and SPA Center by Anne Semonin is a true heaven of relaxation and wellbeing. The rejuvenating SPA promises to transport both mind and body to the most dreamy of faraway places. A unique place where the senses are awakened with calm settings, a scent of rare oils together with the health club, indoor and outdoor swimming pools will seduce anyone. Guests will be invited to refresh and unwind at the SPA “Ozone” Bar. The Radisson Blu Hotel, Batumi is the perfect professional partner to ensure that business meetings and special events become an unrivalled success. Fully compatible with today’s dynamic business needs, the hotel comprises seven air-conditioned meeting rooms including a Ballroom, all equipped with the state-of-the-art technology. Opening room rates start at USD 220.5 per room per night (excluding breakfast and taxes). www.radissonblu.com/hotel-batumi

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