ByteDance: India’s

account freeze a
harassment page 10

Monday, April 5, 2021

33,153.21 10,440.50 50029.83 1,728.40

GCC states look beyond COVID-19 by Dow +171.66 pts QE -16.8 pts sensex +520.68 pts Gold +0.75 %

rethinking role of expats, tax page 9 Price percentage Price percentage 24.95
Brent 64.86 +3.38 % WTI 61.45 +3.87% Silver +1.70 %

Qatar’s healthcare industry to Investors give

a thumbs-up

reach $12 bn by 2024: Report

Qatar’s first pharmaceutical factory ‘Doha Pharmaceutical Industries’ expected to start production by mid-2021
Satyendra Pathak
Doha
Medical tourism is expected to gain
prominence in Qatar and be a focal
point for the government’s strategy to
diversify the economy away from oil,
according to a report from Mashreq
and the research firm Frost & Sullivan.
With the gradual emergence of top-
notch tourism infrastructure and visa-
free access to more than 80 countries,
the report said, Qatar is on the right
track to developing as a world-class
medical tourism hub.
The Mashreq-Frost & Sullivan re-
port forecasts that the private sector
will play a bigger role in healthcare in-
frastructure and delivery in the future
in Qatar.
“This is in line with the Ministry
of Public Health’s long-term target of
reaching 5,700 hospital beds by 2033,”
the report said.
Over the past few decades, the re-
port said, Qatar’s government has been
investing heavily in developing an in-
tegrated healthcare system that offers
high-quality services.
As a consequence, the healthcare
industry has witnessed unprecedented
growth and is estimated to reach $8.8
billion in 2020 and $12 billion by 2024,
reflecting an incredible growth of 360
percent compared to 2010.
Sustaining this pace, Qatar’s health-
care system is likely to outperform its
GCC neighbours within the next few
years.
There has been a significant expan-
sion of infrastructure and range of ser-
vices in the Qatari healthcare system.
The number of hospital beds reached
3535 in 2018, marking an additional
908 beds since 2016.
“The Qatari government is con-
stantly trying to upgrade the quality of
its health services by using advanced
technology and international expertise.
Together, the medical device, medical
imaging, and IVD markets are estimat-
ed to be worth $0.35 billion in 2020,”
the report said.
The market for medical equipment,
in particular, is expected to grow over
the next five years. Currently, the mar-
ket relies on imports led by the US, fol-
lowed by Europe and Asia due to the
current lack of local production capac-
ity in the area.
“Qatar is also pursuing various
R&D initiatives and giving high pri-
Qatar on right track to becoming medical
tourism hub with the gradual emergence
of top-notch tourism infrastructure
ority to scientific research in support
of Qatar National Vision 2030 goals.
Although Qatar’s pharmaceuticals
industry is still in its nascent stages,
numerous start-ups and research
projects are helping to establish the
country as a centre for academic ex-
cellence and Medtech R&D,” the re-
port said.
“Public-private partnerships will
be further explored to achieve several
healthcare-related goals. The private
sector will be given a larger role in the
government’s ongoing plans to develop
a national health insurance scheme as
well as provide better healthcare ser-
vices. As an example, the government
invited bidders from the private sector
to design, build and operate three hos-
pitals on state-owned land in Qatar in
2019,” the report said.
“Qatar is redrafting the public-pri-
vate partnership framework to follow
best practices. This will likely attract
foreign investments into the country
and support the development of the
pharmaceuticals and medical devices
markets,” it said.
“New ventures will have a positive
impact on the ongoing self-sustaina-
bility efforts of the Qatari government.
As such, the first pharmaceutical fac-
tory, Doha Pharmaceutical Industries,
is nearing completion. This first of its
kind factory is expected to start produc-
tion by mid-2021 with over 150 medi-
cines in the first phase of production
and 300 in the second phase,” the re-
port said.
Providing a general view, the report
said that the GCC hospital revenues
are predicted to grow by 5.8 percent in
2021 with the healthcare sector poised
for strong growth on the back of a surge
GCC healthcare growth on track to return to
pre-COVID-19 levels with hospital revenues
predicted to grow by 5.8 percent in 2021
in medical devices, a growing branded
generics market and increased invest-
ment in infrastructure and innovation.
The strength of rebound suggests
that healthcare growth is on track to
return to pre-COVID-19-levels when
the region had the highest healthcare
infrastructure investments with a ma-
jor increase in the number of hospitals
and beds.
“Hospital revenues heavily im-
pacted by a COVID-19-induced drop
in outpatient visits and elective surgery
volumes are forecast to bounce back
strongly in Q1 and Q2 2021 in most
GCC countries,” said the report.
The report noted that the number
of hospitals almost doubled in most
countries, and at least 80 percent of the
hospitals and primary care clinics built
in the GCC were driven by government
initiatives and expansion plans.
Karim Amer, head of Healthcare
and Education, Mashreq Bank, said
the GCC healthcare sector is on the
cusp of a promising recovery, with
clear evidence of growth in domestic
drug manufacturing to bring down
the portion of imported medicines,
and the enormous scope for techno-
logical investment – particularly in
AI, analytics, electronic health re-
cords and robotics.
“For investors and innovators with-
in the healthcare ecosystem, the Gulf
is unquestionably full of opportunity.
Increasingly digital opportunities are
driving new trends, for example, soar-
ing demand for e-commerce services
will most likely result in a doubling of
e-commerce providers by 2030. This
shift to digital health will only continue
to emerge in prominence moving for-
ward,” said Amer.
to latest
OPEC policy
Agencies
Saudi Arabian stocks out-
performed on Sunday with
advances led by its banking
and petrochemical shares af-
ter OPEC+ paved the way for
easing of oil production curbs.
Other GCC markets struggled
for direction with investors
awaiting the next big clue.
Saudi Arabia’s benchmark
index traded 0.7 per cent
higher at 9,963 points with
petrochemical and banking
stocks leading the advances.
Saudi-led OPEC+ decided
in their Thursday meeting
to gradually ease oil output
curbs in coming months, a
move that could add to the
kingdom’s revenues if oil
prices do not slide consid-
erably. Lenders and energy
companies will be the biggest
beneficiary as they rely heav-
ily on oil money.
Sabic, Saudi Aramco and
Advanced Petrochemical all
made upward movements
with Riyad Bank, Banque Sau-
di Fransi and Al Jazira Bank
joining the rally. However,
the biggest boost came from
Saudi National Bank which
jumped 3.6 per cent adding
to its gains after it completed
merger with Samba Financial
Group and is now solely trad-
ing as a merged entity.
The lender, which has
named Ammar Abdul Wahed
al-Khudairy as its new chair-
man on Sunday, is trading up
more than 30 percent year-to-
date as investors appeared to
cheer the merger with $239
billion in combined assets.
The consolidation of the two
banks comes at a time when
volatile oil prices and weak
economic growth are pushing
lenders merger in the region.
Abu Dhabi Securities Ex-
change edged up 0.2 per cent
at 5,953 points in what was
its sixth consecutive gain.
Gulf Cement, Arkan Building
Materials and International
Holding were among the big-
gest gainers, while Abu Dhabi
Aviation scaled up 3 per cent
after it made public its plan
to acquire Falcon Aviation
Services. The index gains
were limited by First Abu
Dhabi Bank, which slipped
0.3 percent.

Namaa Doha launches high-end villas project at The Pearl Qatar

Units are open for
reservation through
real estate brokerage
companies
Tribune News Network
Doha

Namaa Doha Real Estate has bro-

ken ground on the 49 high-end villas
Giardino Village project at The Pearl
Qatar. With construction progress-
ing at a steady pace, completion of
the project is scheduled for the third
quarter of 2022.
The project offers promising in- Namaa Doha Real Estate CEO Abdulaziz The exclusive development features a mixture of properties ranging from 470 to 2,427 sqm as well as completed villas, villa plots, and low-rise building plots with a
vestment opportunities at 49 stan- Muhammed Hamad Al Mana ground floor and three to five additional stories.
dalone villas. Each villa comprises
two levels, a basement, and a pent- villas at Giardino Village. This is in makes great headway in preparing interested in The Pearl’s top-tier available offers, one can visit www. building plots with a ground floor
house in addition to a private pool line with the company’s belief in for the FIFA World Cup 2022, now neighbourhood. namaa-doha.com. and three to five additional stories.
and parking spaces. providing luxury projects in the lo- only one year away. Namaa Doha Namaa Doha Real Estate has Giardino Village is located on The project is undertaken by
Commenting on the launch of cal market that meet customers’ as- Real Estate is proud to play an im- announced that units are open for a tranquil enclave in close proxim- Namaa Doha Real Estate, recently
the project, Namaa Doha Real Estate pirations, in addition to providing a portant role in these efforts and be reservation through real estate bro- ity to The Pearl’s retail centres of established in 2020, as the youngest
CEO Abdulaziz Muhammed Hamad calm haven at strategic locations.” an important anchor in the history kerage companies approved by the Medina Centrale and Porto Arabia. real estate developer in the country.
Al Mana said, “We are proud to an- “These endeavours are boosted of sustainable development of the company. Interested buyers can also The exclusive development features New projects are expected to be an-
nounce Namaa Doha Real Estate’s by positive trends that are projected country,” Mana said. take advantage of bank financing a mixture of properties ranging from nounced by the developer during the
first foray into real estate with the across the local market which is wit- The project presents a unique options to reserve a unit. For more 470 to 2,427 sqm as well as com- course of the year as it seeks to ex-
flagship development of high-end nessing great stability as the country opportunity for investors who are details about the company and the pleted villas, villa plots, and low-rise pand its range of properties.

QIB customers can now pay for Uber, Careem and Talabat using Absher points
Tribune News Network
Doha
Qatar Islamic Bank (QIB)
has announced further en-
hancements to its compre-
hensive Absher Rewards
Programme, adding leading
transportation and food de-
livery service provider in Qa-
tar to its extensive network
of Absher points’ redemption
partners.
With the new updates,
QIB customers can now ex-
change their Absher points
against e-vouchers as pay-
ment methods when using
the Uber, Careem and Talabat
Building sales
generate QR258
mn in a week
Tribune News Network
Doha
Registered property
sales in Qatar between
March 21 and 25 generated
QR431.5 million, the latest
Ezdan Real Estate report
has said, citing figures from
the country’s Real Estate
Registration Department.
Building sales dominat-
ed these deals, generating
QR258 million and mak-
ing up 59.8 percent of the
total sales value during the
period.
Seven municipalities
— Umm Salal, Al Khor, Al
Thakira, Al Doha, Al Rayy-
an, Al Shamal, Al Daayen,
and Al Wakra — saw varie-
ties of property sales dur-
ing the period. The deals
included sale of vacant land
lots, residences, multi-use
buildings, multi-use land
lots and residential build-
ings, the report, which is
sponsored by SAK Partner-
ships, said.
Doha municipality came
on top in terms of trans-
Ezdan Real Estate Company runs more than 22,800 residential
units, and around 790 commercial units inside Doha and its
environs, including Al Wakra and Al Wukair.
Explainer: Starving for more chips in a tech-hungry world
Agencies
As the U.S. economy rebounds
from its pandemic slump, a vi-
tal cog is in short supply: the
computer chips that power a
wide range of products that
connect, transport and enter-
tain us in a world increasingly
dependent on technology.
The shortage has already
been rippling through vari-
ous markets since last sum-
mer. It has made it difficult for
schools to buy enough laptops
for students forced to learn
from home, delayed the re-
lease of popular products such
as the iPhone 12 and created
mad scrambles to find the lat-
est video game consoles such
as the PlayStation 5.
But things have been get-
ting even worse in recent
weeks, particularly in the auto
industry, where factories are
shutting down because there
aren’t enough chips to fin-
ish building vehicles that are
starting to look like comput-
applications in Qatar.
The redemption process
only takes a few clicks, and
can be done easily, and at
anytime from anywhere via
the QIB Mobile App or the
dedicated Absher web portal
(absher.qib.com.qa). After
logging in, customers can tap
on “redeem partners”, and
then select “Uber Qatar”, “Ca-
reem” or “Talabat Qatar” to
access the dedicated redemp-
tion pages, and then click on
the “redeem now” button.
After confirming the points’
redemption, customers can
immediately receive e-vouch-
ers to be used as a payment
action value through the
sale of a residential build-
ing in Fereej Bin Omran.
The transaction generated
QR23 million. The property
is 1,653 square metres in
area and was sold at a price
of QR1,293 per square foot.
The report also high-
lighted some of Ezdan’s
milestone projects, includ-
ing its office project in Umm
Ghuwailina. It is located in
the vicinity of Corniche and
provides lots of services to
tenants, including car park-
ing, and overlooks the main
road which enhances the
businesses renting these of-
fices. The project features
128 offices in different sizes.
Ezdan Real Estate
Company runs more than
22,800 residential units,
and around 790 commer-
cial units inside Doha and
its environs, including Al
Wakra and Al Wukair. The
company continues to in-
vest in the real estate sector
and contribute to real es-
tate development in Qatar
on a large scale.
ers on wheels. The problem
was recently compounded by
a grounded container ship
that blocked the Suez Canal
for nearly a week, choking off
chips headed from Asia to Eu-
rope.
These snags are likely to
frustrate consumers who can’t
find the vehicle they want and
sometimes find themselves
settling for a lower-end mod-
els without as many fancy
electronic features. And it
threatens to leave a big dent
in the auto industry, which by
some estimates stands to lose
$60 billion in sales during the
first half of his year.
“We have been hit by the
perfect storm, and it’s not
going away any time soon,”
said Baird technology analyst
Ted Mortonson, who said he
has never seen such a serious
shortage in nearly 30 years
tracking the chip industry.
Is the pandemic to blame?
Sort of. The pandemic
Economy & Business
method when using these se-
lected services in Qatar.
QIB customers can earn
GCC states look beyond COVID-19
by rethinking role of expats, tax
Tribune News Network
Doha
PwC on Sunday launched the
latest Middle East Economy
Watch, ‘The GCC rethinks ex-
pats and tax as it looks beyond
COVID-19’.
Considering the changes in
the region over the last year,
this issue looks at two trends
in the GCC which predate the
crisis but have been ampli-
fied by it, as diversification
becomes more important than
ever: expats and taxation.
Labour reform develop-
ments in the GCC are indica-
tive of a broader trend of re-
thinking the roles and rights
of expatriates, who were long
assumed to be temporary resi-
dents in a transitional phase of
development. As governments
look ahead to transform the
region and create new avenues
of growth, opportunity and re-
silience, the value of talented
and wealth-creating expats
should not be ignored.
Bassam Hajhamad, Qa-
tar Country Senior Partner at
PwC, said: “Qatar has led the
way on long-term residency
schemes; focusing on improv-
ing worker rights and their
wellbeing. For the same rea-
son, a minimum wage was set
last year for all workers.” Add-
ing: “These labour reforms im-
plemented over the past years
have been welcomed by the
international community, who
applauded the country’s move
to a more dynamic and attrac-
tive labour environment.”
Richard Boxshall, Mid-
dle East Senior Economist at
PwC Middle East said: “As the
region looks to diversify, it is
better appreciating the value
of expats as entrepreneurs,
investors, consumers and, in-
creasingly, as taxpayers. These
changes in residency and la-
bour rights have attracted and
retained high-value expats,
while at the same time improv-
ing the business environment.
We expect these long-term
residency schemes to continue
being a major development in
prompted chip factories to
start shutting down early last
year, particularly overseas,
where the majority of the pro-
cessors are made. By the time
they started to reopen, they
had a backlog of orders to fill.
That wouldn’t have been as
daunting if chipmakers weren’t
then swamped by unforeseen
demand. For instance, no one
entered 2020 expecting to see
a spike in personal computer
sales after nearly a decade of
steady decline. But that’s what
happened after government
lockdowns forced millions of
office workers to do their jobs
from homes while students
mostly attended their classes
remotely.
Are other factors at work?
Yes. Both Sony and Micro-
soft were preparing to release
highly anticipated next-gen-
eration video game consoles
for their PlayStation and Xbox
brands, respectively, that re-
quired more sophisticated
Absher points every time
they engage with the range of
Bank’s products and services,
Labour reform developments in the GCC are indicative of a broader trend of rethinking the roles and rights of expatriates, according to PwC.
the coming years as we look to
attract, and retain, the world’s
top talent and investors.”
Qatar was the first to
launch the long-term residen-
cy scheme in 2018, followed by
Saudi Arabia in 2019 and the
United Arab Emirate’s with its
Golden Visa, which is available
to select investors and talent
from around the world.
Although the GCC has gen-
erally been a no tax, or very
low tax zone, the tax environ-
ment is now changing rap-
idly, spurred by the challenge
of lower oil prices since 2015
and by a growing apprecia-
tion, particularly over the last
year, that the clean energy
transition requires a rethink
of the region’s model. Efforts
to diversify both economies
chips than ever. To add to the
demand, wireless network
providers are clamoring for
chips to power ultrafast “5G”
services being built around the
world.
President Donald Trump’s
trade war with China prob-
ably didn’t help either. Some
analysts believe the Trump
administration’s blacklist-
ing of Huawei Technologies
prompted that major maker of
smartphones to build a huge
stockpile of chips as it braced
for the crackdown.
Why is the auto industry
bring hit so hard?
Stay-at-home orders drove
a surge in consumer electron-
ics sales, squeezing auto parts
suppliers who use chips for
computers that control gas
pedals, transmissions and
touch screens. Chip makers
compounded the pressure by
rejiggering factory lines to bet-
ter serve the consumer-elec-
tronics market, which gener-
such as transferring their sal-
aries for the first time, open-
ing fixed deposit accounts, us-
ing their QIB Credit and Debit
Cards, in addition to register-
ing for the QIB Mobile App
and Internet Banking portal.
“In line with our com-
mitment to offer the most
comprehensive ways to re-
ward our customers, and to
support with the demand
for transportation and food
delivery services in Qatar
during these unprecedented
times, we have extended our
list of Absher points redemp-
tion partners to include the
popular applications; Uber,
and public finances are finally
beginning to make progress,
but the challenge is to pre-
vent those two objectives from
working against each other.
A majority of the tax in-
creases since 2017 have come
from VAT, applied so far in
three countries, and from
so called “sin tax” excise du-
ties, applied everywhere but
Kuwait. Together, VAT and
excise tax raised around $24
billion, more than a quarter
of the total tax revenues in
2019. The tripling of VAT in
Saudi Arabia in July 2020 and
the launch of VAT in Oman in
April should see the take dou-
ble again to about $47 billion
in 2021, nearly half of all GCC
taxation. The other major in-
crease has come from Saudi
ates far more revenue for them
than autos.
After eight weeks of pan-
demic-induced shutdown in
the spring, automakers started
reopening factories earlier
than they had envisioned. But
then they were hit with un-
expected news: chip makers
weren’t able to flip a switch
quickly and make the types of
processors needed for cars.
How are automakers deal-
ing with the shortage?
They’ve canceled shifts
and temporarily closed fac-
tories. Ford, General Motors,
Fiat Chrysler (now Stellantis),
Volkswagen and Honda seem
to have been hit the hardest.
Others, most notably Toyota,
aren’t being affected as dra-
matically. That is probably
because Toyota was better
prepared after learning how
sudden, unexpected shocks
can disrupt supply chains
from the massive earthquake
and tsunami that hit Japan in
Monday, April 5, 2021
Careem and Talabat,” said
D. Anand, QIB’s General
Manager - Personal Banking
Group.
“Transportation and food
delivery services are amongst
the most necessary everyday
services that we all use nowa-
days, and they will become
even more accessible for all
QIB customers with the pos-
sibility to pay using cashless
solutions with our Absher
points programme.”
Customers can also
choose to redeem their Ab-
sher points against vouchers
to shop at the Mall of Qatar,
shop from all Al Meera su-
Arabia’s expat levies, phased
in since 2017, which raised
approximately $15 billion in
2019 alone.
Boosting the tax take is a
high priority, particularly for
the countries with the least
fiscal space and reserves, such
as Oman, Bahrain and, to a
lesser extent, Saudi Arabia.
However, there are risks that
the increasing cost and com-
plexity of taxes could weigh on
local businesses, particularly
during this difficult period of
recovery from the pandemic,
impeding efforts to attract for-
eign investment to help move
economies beyond oil, and
potentially generating social
discontent.
One response has been
to grant temporary exemp-
2011, said Bank of America Se-
curities analyst Vivek Arya.
The harder hit automakers
have diverted chips from slow-
er-selling models to those in
high demand, such as pickup
trucks and large SUVs. Ford,
GM and Stellantis have start-
ed building vehicles without
some computers, putting them
in storage with plans to retrofit
them later.
GM expects the chip short-
age to cost it up to $2 billion
in pretax profits this year from
lost production and sales.
Ford is bracing for a similar
blow. Chip makers probably
won’t fully catch up with auto-
industry demand until July at
the earliest.
How will this affect people
who want to buy a new
car?
Expect to pay more. Sup-
plies of many models were
tight even before the chip
shortage because automakers
were having trouble making
09
permarkets in Qatar, or settle
their Ooredoo, Vodafone or
Kahramaa utility bills.
Absher points can also be
used to book flights with over
900 airlines, book a room
from over 450,000 hotels or
rent a car from more than
150,000 car rental offices in
more than 150 cities world-
wide. Customers also have
access to the online shopping
store specialized in redeem-
ing points with thousands
of products across different
categories, ranging from elec-
tronic items, personal and
household items from lead-
ing brands.
tions. Most GCC states of-
fered these during 2020,
particularly to firms in the
sectors most affected by lo-
cal lockdowns. Even before
the pandemic, Saudi Arabia
was providing exemptions
for manufacturing firms and
small-to-medium enterpris-
es to the burdensome expat
levy. Short-term exemptions
are beneficial, but businesses
also need longer-term pre-
dictability to facilitate invest-
ment and risk-taking.
Richard added: “With
careful design, tax policies can
be used to encourage positive
outcomes and can potentially
provide a win for revenue gen-
eration, a win for cost of col-
lection and, importantly, a win
for competitiveness.”
up for production lost to the
pandemic.
IHS Markit estimates that
from January through March,
the chip shortage reduced
North American auto produc-
tion by about 100,000 vehi-
cles. In January of last year,
before the pandemic, the U.S.
auto industry had enough ve-
hicles to supply 77 days of de-
mand. By February of 2021 it
was down almost 30% to 55
days.
Will other popular prod-
ucts be affected this year?
Samsung Electronics, one
of the world’s biggest chip-
makers, recently warned that
its vast line-up of consumer
electronics could be affected
by the shortage. Without spec-
ifying which products might
be affected, Samsung co-CEO
Koh Dong-jin told sharehold-
ers that a “serious imbalance”
between the supply and de-
mand for chips could hurt
sales from April through June.
10 Monday, April 5, 2021 Economy & Business

FB data on over 500 mn

accounts found online
ByteDance: India’s freeze on
Agencies

Details from more than

500 million Facebook users
have been found available
on a website for hackers.
The information ap-
pears to be several years old,
but it is another example of
the vast amount of informa-
tion collected by Facebook
and other social media sites,
and the limits to how secure
that information is.
The availability of the
data set was first reported
by Business Insider. Ac-
cording to that publication,
it has information from 106
countries including phone
numbers, Facebook IDs,
full names, locations, birth-
dates, and email addresses.
Facebook has been
grappling with data se-
curity issues for years. In
2018, the social media gi-
ant disabled a feature that
allowed users to search
for one another via phone
number following revela-
tions that the political firm
Cambridge Analytica had
accessed information on up
to 87 million Facebook us-
Unclaimed: $700,000
ers without their knowledge
or consent.
In December 2019,
a Ukrainian security re-
searcher reported finding a
database with the names,
phone numbers and unique
user IDs of more than 267
million Facebook users —
nearly all U.S.-based — on
the open internet. It is un-
clear if the current data
dump is related to this da-
tabase.
“This is old data that
was previously reported on
in 2019,” the Menlo Park,
California-based company
said in a statement. “We
found and fixed this issue
in August 2019.”
An attempt to reach the
leaker over the messaging
service Telegram was not
immediately successful.
Alon Gal, co-founder
of Israeli cybercrime intel-
ligence firm Hudson Rock,
said Facebook users should
be alert to “social engineer-
ing attacks” by people who
may have obtained their
phone numbers or other
private data in the coming
months.
bank accounts is harassment
Action in the absence of any material evidence or prior notice, as required by Indian law: ByteDance
Agencies
China’s ByteDance has told
an Indian court that a gov-
ernment freeze on its bank
accounts in a probe of pos-
sible tax evasion amounts to
harassment and was done il-
legally, according to a court
filing.
ByteDance in January re-
duced its Indian workforce
after New Delhi maintained a
ban on its popular video app
TikTok, imposed last year af-
ter a border clash between In-
dia and China. Beijing has re-
peatedly criticised India over
that ban and those of other
Chinese apps.
An Indian tax intelligence
unit in mid-March ordered
HSBC and Citibank in Mum-
bai to freeze bank accounts of
ByteDance India as it probed
some of the unit’s financial
dealings. ByteDance has chal-
lenged the freeze on the four
accounts in a Mumbai court.
None of ByteDance In-
dia’s employees have been
paid their March salaries due
to the account freeze, said

from 2010 BP oil spill fund two people familiar with the
matter. The company told
the court it has a workforce of
ByteDance has told an Indian court that a government freeze on its bank accounts in a probe of possible tax evasion amounts to harassment.

Agencies Restaurants, seafood markets, 1,335, including outsourced to requests for comment over and other financial dealings at least three executives, the

Louisiana’s treasurer says

the state is holding more than
$700,000 that has so far gone
unclaimed by people and busi-
nesses affected by the 2010 BP
oil spill in the Gulf of Mexico.
That’s the worth of class
action settlement checks
that have never been cashed,
Treasurer John Schroder says
in a news release.
The amounts range from 8
cents to more than $68,000.
More than 100 of the un-
claimed settlements are for at
least $1,000.
The money, now in the
state’s unclaimed property
fund, comes from the Deepwa-
ter Horizon Trust Fund that
BP established to pay claims.
fishermen, shrimpers and oil
industry-related companies
are among the people and
businesses for whom the mon-
ey is intended.
Schroder’s release says
that, as of Tuesday, 167 people
had claimed $165,000 from
the trust fund through the
state unclaimed property pro-
gram. More than $700,000 in
trust fund money remains in
the program.
“If your livelihood depends
on the Gulf of Mexico, then
you need to search our data-
base,” Schroder said in the re-
lease. “This is your money. We
want you to claim it.”
People can search for un-
claimed property at www.la-
treasury.com.
personnel.
In the 209-page court
filing lodged on March 25,
ByteDance told the High
Court in Mumbai the authori-
ties acted against the com-
pany without any material
evidence and gave no prior
notice, as required by Indian
law, before such “drastic ac-
tion”.
Blocking accounts “during
the process of investigation
amounts (to) applying undue
coercion,” ByteDance argued.
It is “intended, improperly, to
harass the petitioner.”
India’s Directorate Gen-
eral of Goods & Services Tax
Intelligence, and the finance
ministry which oversees it,
did not immediately respond
the weekend.
The details of the tax in-
vestigation have not previ-
ously been reported. The tax
agency told ByteDance last
year it had reasons to believe
the company suppressed cer-
tain transactions and claimed
excessive tax credits, the filing
shows.
ByteDance declined to
comment on its court filing
but told Reuters on Tuesday
it disagrees with the decision
of the tax authority. HSBC de-
clined to comment, while Citi-
bank did not respond.
The court declined to
grant ByteDance immediate
relief in a brief hearing on
Wednesday. The next hearing
is scheduled for Tuesday.
The bite
● None of ByteDance India’s
employees have been paid
their March salaries due to
the account freeze
● ByteDance in January
reduced its Indian
workforce after New Delhi
maintained a ban on its
popular video app TikTok
● Beijing has repeatedly
criticised India over that
ban and those of other
Chinese apps
The investigation centres
on potential evasion of taxes
related to online advertising
between ByteDance India and
its parent entity in Singapore,
TikTok Pte Ltd. TikTok did
not respond to an email seek-
ing comment.
ByteDance told the court
its India workforce includes
800 people working in its
“trust and safety” team that
supports activities like con-
tent moderation overseas.
The company has “robust
business plans in India and
is not contemplating winding
up,” it said, urging the court
to lift the freeze on the ac-
counts.
The tax agency started
investigating the company in
July. It inspected documents
at the company’s office and
summoned and questioned
filing says. Authorities also
asked ByteDance to submit
documents, including in-
voices and agreements signed
with some clients.
ByteDance representatives
“appeared multiple times” be-
fore tax officers and provided
documents, the filing says.
TikTok, one of India’s
most popular video apps be-
fore it was banned, has faced
scrutiny around the world.
Under then-President
Donald Trump, the United
States alleged the app posed
national security concerns.
The new administration of Joe
Biden has paused a govern-
ment lawsuit that could have
resulted in a de facto ban on
TikTok’s use there.

Japanese business confidence up for third quarter in a row

DPA
Tokyo
Business confidence
among large Japanese manu-
facturers rose for the third
straight quarter amid a re-
covery in the coronavirus-hit
economy, the Bank of Japan’s
latest Tankan survey showed
on Thursday.
The headline reading for
the manufacturing sector
rose to plus 5 from minus
10 in December after hitting
minus 34 in June, its lowest
level in 11 years, due to coro-
navirus-induced restrictions.
The reading, which
turned positive for the first
time in six quarters, was bet-
ter than the median forecast
of minus 2 by analysts sur-
veyed by Kyodo News.
Positive numbers on the
Tankan index indicate the
extent to which optimists
outnumber pessimists.
The central bank’s survey
also showed large manufac-
turers expected the index to
edge down to plus 4 in the
second quarter of 2021 amid
fears of a resurgence of coro-
navirus infections.
Business sentiment
among medium-sized manu-
facturers climbed to minus
2 from minus 17 in Decem-
ber while the index for small
manufacturers rose to minus
13 from minus 27, the survey
showed.
The index of large non-
manufacturers’ sentiment
rose to minus 1 in March
from minus 5 three months
ago, the survey showed, as
hotels and restaurants con-
tinued to be battered by the
Covid-19 pandemic.
Large corporations in
the manufacturing and non-
manufacturing sectors ex-
pected their investment to
rise 3 per cent for the new
financial year through March
2022 from the previous year,
according to the survey.
Japan ended the coro-
navirus state of emergency
that was in place in Tokyo
and its surrounding three
prefectures on March 21 de-
spite growing concerns about
a new spike of infections
Business sentiment among medium-sized manufacturers in Japan and increasing cases of new
climbed to minus 2 from minus 17 in December. strains of the virus.
The state of emergency
was declared in the four pre-
fectures in early January and
seven other prefectures were
added to the measure six
days later.
It was lifted in Tochigi,
north of Tokyo, in February
and six other prefectures ear-
lier this month.
Japan confirmed 2,843
new cases on Wednesday,
exceeding 2,800 for the
first time since January 31,
and 49 Covid-19-related
deaths, according to Kyodo
News.

‘computational creativity’

Robot artist sells art for $688,888, now eyeing music career
Agencies
Sophia is a robot of many talents
— she speaks, jokes, sings and even
makes art. In March, she caused a
stir in the art world when a digital
work she created as part of a col-
laboration was sold at an auction for
$688,888 in the form of a non-
fungible token (NFT).
The sale highlighted a growing
frenzy in the NFT market, where
people can buy ownership rights to
digital content. NFTs each have a
unique digital code saved on block-
chain ledgers that allow anyone to
verify the authenticity and owner-
ship of items.
David Hanson, CEO of Hong
Kong-based Hanson Robotics and
Sophia’s creator, has been develop-
ing robots for the past two and a
half decades. He believes realistic-
looking robots can connect with
people and assist in industries such
as healthcare and education.
Sophia is the most famous
robot creation from Hanson Robot-
ics, with the ability to mimic facial
expressions, hold conversations and
recognize people. In 2017, she was
granted Saudi Arabian citizenship,
becoming the world’s first robot
citizen.
“I envisioned Sophia as a
creative artwork herself, that could
generate art,” Hanson said in an
interview.
“Sophia is the culmination of a
lot of arts, and engineering, and the
idea that she could then generate
art was a way for her to emotionally
and visually connect with people,”
he said.
Sophia collaborated with Italian
artist Andrea Bonaceto, who drew
portraits of Sophia. Sophia then pro-
cessed his work via neural networks
and proceeded to create a digital
artwork of her own.
then processed that, adding that
image to her knowledge and painted
more strokes on top of her original
piece.
In a tweet on Sophia’s account,
the work was described as the first
NFT collaboration between an “AI,
a mechanical collective being and an
artist-collector.” “As an artist, I have
computational creativity in my algo-
rithms, creating original works,” So-
phia said when asked what inspires
her when it comes to art. “But my
art is created in collaboration with
my humans in a kind of collective
intelligence like a human-artificial
intelligence hive mind.” Sophia’s
The close-up of the head of Sophia is seen at Hanson Robotics studio in Hong Kong. artwork selling as an NFT is part of
a growing trend. In March, a digital
The digital work that sold for cal artwork painted by Sophia. artwork by artist Beeple — whose
$688,888 is titled “Sophia Instantia- The buyer, a digital artwork real name is Mike Winkelmann —
tion”, and is a 12-second video file collector and artist known as 888 sold for nearly $70 million, shatter-
which shows Bonaceto’s portrait with the Twitter handle @Cryp- ing records and making it the most
evolving into Sophia’s digital paint- to888crypto, later sent Sophia a expensive digital artwork ever sold.
ing. It is accompanied by the physi- photo of his painted arm. The robot Henri Arslanian, Pricewa-
terhouseCooper’s Global Crypto
Leader, said that NFTs give people
“bragging rights” of the assets that
they own.
“And what is really amazing
with NFT is that it not only allows
you to actually show to the broader
world that you own this, but it re-
ally creates this bond between the
holder of the NFT and the artists,”
he said.
It also allows art to be sold with-
out traditional intermediaries, so
that artists can connect directly with
buyers without being constrained by
galleries or auction houses, Arsla-
nian said.
Sophia will carry on painting,
Hanson said, and the next step in
the robot’s career could be that of a
musician. She is working on several
musical works in a project called
Sophia Pop, where she collaborates
with human musicians to generate
music and lyrics, he said.
 Monday, April 5, 2021 11
Economy & Business
OBG Report

Can infrastructure projects drive

emerging markets’ COVID-19 recoveries?
Emerging markets are expected to be a key engine of growth for global infrastructure investment in the years ahead

Tribune News Network
Doha
Many emerging markets are
turning towards infrastructure
projects to stimulate the economic
recovery from the coranvirus pan-
demic, with a particular focus on
green and sustainable develop-
ments, according to the Oxford
Business Group (OBG).
Despite the broader downturn
last year – which the IMF says
resulted in the global economy
contracting by 3.5 percent – the
number of newly announced in-
frastructure projects actually in-
creased by 5 percent, according to
analysis from global financial data
company Refinitiv. In total, 2,550
new projects were announced in
2020 with a combined value of
$739 billion.
Of these, 56 percent were clas-
sified as sustainable, primarily
made up of renewable energy pro-
jects in the solar, wind, biomass
and hydroelectric segments. This
was the fourth consecutive year in
which the number of sustainable
projects increased, rising from
808 in 2016 to 1,437 in 2020.
A majority of infrastructure
projects announced last year were
in the power sector (63.7 percent),
followed by transportation (11.4
percent), leisure and property (7.9
percent), and oil and gas (5.6 per-
cent).
While the majority of these
projects were in Western Europe
(604) and North America (419),
297 were announced in Latin
America and 257 in South-east
Asia.
In terms of the latter, Vietnam
connected more than 9 GW of so-
lar power to the national system
over the course of 2020 – increas-
ing the country’s overall solar ca-
pacity eight-fold relative to 2019
levels. Meanwhile, in June the
government approved a further 7
GW in wind power projects.
Sustainable development to
drive growth
Looking ahead, growth in the
volume of infrastructure projects
is expected to continue into 2021,
as restrictions ease and govern-
ments look to stimulate their
economies.
An example of a potential
infrastructure-led recovery is US
President Joe Biden’s proposed
multibillion-dollar “Build Back
Better” plan, which aims to re-
pair much of the country’s physi-
cal infrastructure – such as roads,
shift, renewed investment is nec- South and South-east Asian con-
In a nutshell essary to bridge the ongoing infra-
structure gap. Despite an increase
struction market in 2020, UK
data analytics firm GlobalData
● Despite the economic slowdown, infrastructure projects increased by in projects last year, the world has has projected the sector will ex-
5.5% in 2020 long been underinvesting in infra- perience a significant rebound in
structure. 2021.
● Infrastructure development is likely to be a key growth driver this According to the Global Infra- One country looking towards
year structure Hub, a G20 initiative, infrastructure as a major eco-
the world is facing a $400bn gap nomic growth driver is the Philip-
● Green or sustainable projects are those most likely to increase in in infrastructure investment this pines. While many projects under
demand year, a figure that could cumu- the flagship “Build, Build, Build”
latively grow to $15trn by 2040 plan were delayed last year, the
● Asia is leading the way for emerging market infrastructure if current rates of spending con- government has made attempts to
development tinue. revitalise them in 2021.
In January it was announced
Asia leading the way that a Chinese consortium would
bridges and airports – while also 500bn this year. Emerging markets are expect- finance the $940m Subic-Clark
investing significant amounts in Global examples of major ed to be a key engine of growth for cargo railway project, while in
new broadband internet develop- sustainability-minded infrastruc- global infrastructure investment March the Department of Pub-
ments and green energy projects. ture strategies include the EU’s in the years ahead. lic Works and Highways said it
From a global perspective, €1trn European Green Deal plan, According to projections from had hired an additional 1000 en-
green developments are once which envisages massive invest- insurance company Swiss Re, gineers to fast-track a series of
again expected to be one of the ment in sustainable projects to en- of the $66bn in infrastructure “Build, Build, Build” projects.
major drivers of infrastructure sure the bloc is climate neutral by spending expected between 2021 Infrastructure development
growth, spurred on by growing 2050, and China’s Belt and Road and 2040, some $43bn is to come across the region is also expected
demand for renewable energy and Initiative, which is placing greater from emerging markets. Much of to be supported by international
governmental efforts to meet car- emphasis on sustainable infra- this will be driven by emerging institutions. In March the Green
bon reduction targets. structure in the wake of Covid-19 Asia (including China), which will Climate Fund announced that
As OBG has outlined, the value through its Green Silk Road plan. account for $35bn in infrastruc- it would allocate $300m to the
of green bonds defied the Covid-19 Elsewhere, significant invest- ture spending over the period. Asian Development Bank-man-
economic slowdown to reach a re- ment is also expected in telecom- The region is also expected to aged green recovery programme,
cord high of $269.5bn last year, munications infrastructure fol- see a spike in infrastructure pro- which will provide technical as-
according to the Climate Bonds lowing the rapid uptake of digital jects in the short term. sistance and concessional loans
Initiative, a figure that some sug- services throughout the pandemic. After Covid-19 prompted an to 20 green energy projects across
gest could be as high as $400- As global demand patterns 8.5 percent contraction in the South-east Asia.

What Biden’s new $100 billion plan for broadband means

Agencies
The problems with U.S.
broadband networks have
been obvious for years. Ser-
vice costs more than in many
other rich nations, it still
doesn’t reach tens of millions
of Americans and the compa-
nies that provide it don’t face
much competition.
Now the Biden admin-
istration is promising to do
something about all of those
issues as part of its proposed
$2.3 trillion infrastructure
package. The plan, which
would devote $100 billion to
get all Americans connected,
is more idea than policy and
lacks a lot of important detail.
But it sketches out a strik-
ing new vision of activist gov-
ernment measures intended
to improve high-speed inter-
net service, following decades
in which the government has
largely left the job to private
companies.
What is Biden’s proposal?
It would spend $100 bil-
lion to “future-proof” broad-
band as part of an eight-year
infrastructure plan, calling
high-speed connections “the
new electricity” that’s now a
necessity for all Americans.
(For history buffs, that’s a
reference to the Rural Elec-
trification Act — Depression-
era legislation that sped the
extension of power lines to
farms and rural communi-
ties.)
It could signal a major
policy shift toward lowering
the high cost of internet ser-
vice, rather than just handing
money to broadband provid-
ers for building out networks.
“Americans pay too much for
internet,” the plan bluntly
states.
It pushes for greater
competition that could lower
prices, by encouraging and
supporting networks owned
or affiliated with local govern-
ments, cooperatives and non-
profit organizations. Current-
ly, roughly 20 states restrict
municipal broadband. Prior-
itizing such networks could
give them a leg up when the
government doles out money
for extending service.
“The most important
thing about what President
Biden has done in the pro-
posal is that he’s redefined
the digital divide,” said Larry
Irving, a top telecom official
in the Clinton administration.
“The simple act of recognizing
that poverty is a bigger indi-
cator of lack of access than ge- tisan issue, but Republican Republicans’ concerns
ography is a huge statement.” leaders of the House and Sen- echo those from industry.
It’s not clear how the ate Commerce committees The cable lobbying group
Biden administration plans to called Biden’s approach on NCTA said the White House
bring that about. broadband wasteful. “risks taking a serious wrong
Rep. Cathy McMorris turn ... by suggesting that the
Why is this necessary? Rodgers of Washington, the government is better suited
The pandemic has made Republican ranking mem- than private-sector technolo-
clear that millions of Ameri- ber of the House Energy and gists to build and operate the
cans are not online, a problem Commerce Committee, said internet.” The NCTA also said
that isn’t limited to rural are- Biden’s plan would “hurt it was worried about price
as but includes cities too. The private investment in our regulation. The Biden docu-
White House says more than networks without actually ment does not mention price
30 million Americans don’t closing the digital divide.” controls.
have access to high-speed She called for trimming Jonathan Spalter, CEO
internet at all, and millions regulations on building in- of the lobbying group USTe-
more can’t afford it. frastructure to help prompt lecom, said that prioritizing
The divide persists even investment. Sen. Roger investments in government-
after the government has Works on fiber-optic installation being carried out in Norton. Although Wicker of Mississippi, the owned broadband is “exactly
spent billions encouraging the US government has spent tens of billions of dollars to close the Republican ranking mem- the wrong approach” since
broadband providers to con- digital divide, tens of millions of Americans still aren’t online. ber of Senate Commerce, taxpayers will get the bill if
nect far-flung and often iso- said the proposal “opens such networks fail. He also
lated communities. From policy has been an ongoing in areas that do have inter- the door for duplication and claimed that broadband pric-
2009 through 2017, federal mistake, said Gigi Sohn, an net even if it’s slow — what’s overbuilding.” es are already falling.
spending on such programs official in the Obama-era FCC. called “overbuilding.” Congressional Democrats The Labor Department
totaled $47.3 billion, accord- “A lot of what we have is very have recently introduced ma- says pricing for telephone
ing to a government watch- slow,” she said. The White Will Congress support jor broadband legislation of services, which includes in-
dog report. An additional $20 House now says it wants this plan? their own, including a $94 ternet plans along with phone
billion is lined up over the “future-proof” networks “in The $2.3 trillion infra- billion bill from Sen. Amy service, has dropped about
next decade for rural broad- unserved and underserved structure plan has its detrac- Klobuchar of Minnesota and 7% over the past decade. In-
band, and another $9 billion areas,” so they don’t have to tors. Some Democrats are Rep. James Clyburn of South ternet service costs, which in-
for high-speed wireless inter- be rebuilt again years later disappointed because they Carolina, the House Majority clude things like web hosting,
net called 5G in sparsely pop- because they’re out-of-date. wanted more. On the other Whip, who both said they ap- have risen 2%. A think tank
ulated regions. Billions more Exactly what those terms hand, Senate Minority Leader proved of the White House’s with a lot of tech-industry
flowed to broadband from the means for what gets built and Mitch McConnell of Kentucky approach. funding, New America, says
three huge relief packages en- where isn’t clear, either, and called it a “Trojan horse” for prices are higher in the U.S.
acted during the pandemic. many Republicans oppose tax hikes. What does Big Broad- compared with Asia and Eu-
America’s rural-internet putting federal funds to work Internet access is a bipar- band say? rope.