Gibraltar Business Magazine Spring-Summer 2022

Spring - Summer 2022

SITTING DOWN WITH...

John Isola, newly-elected President of the Chamber of Commerce

RE-ENTERING THE WORKFORCE

NFT ART EXPLAINED

DOWNTOWN GIBRALTAR

WITH CLUBHOUSE GIBRALTAR GIBRALTAR

NEWwAGE INVESTMENTS INVESTMENTS

GEARS UP FORLAUNCH LAUNCH FOR

WITH CLUBHOUSE

NEWwAGE

GEARS UP

THE VOICE OF

Gibraltar Chamber of Commerce

The

Issue #11

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FOREWORD : A DELICATE BALANCE Publication of the latest increase in inflation to 7.6 per cent came as less of a surprise than more of a confirmation of what many had been expecting. Some of the causes of such a sharp increase in prices in the last twelve months were foreseeable at the start of the year: interruptions in the global supply chain following the Covid pandemic and a squeeze on the oil supply as factories and businesses resumed full time operations after two years of start/stop production.

Russia’s attack on Ukraine may have been viewed as a possibility at the start of the year, but the effects of its war have compounded the upward pressure on prices. And the longer the conflict lasts the greater the likelihood that inflation’s unwelcome return will become a longer-term fixture in everyday life.

The wholesale oil price is well below its all-time high but the prices of refined product such as petrol and diesel have been hitting historic records in recent months. The reason is that refining capacity in Europe is stretched, particularly for diesel, and a lot of this has historically come from Russia. Locally the Government has sought to ease the pain by reducing duty on fuel ahead of this year’s budget. It has given some respite to drivers and to businesses but the move will cut Government revenues at a time when it needs every penny.

The extensive set of embargoes imposed by Europe on the Kremlin has had consequences for the whole of the EU: the upward pressure on prices of all goods, but particularly fuel has to a great extent been self-inflicted. This was probably all part of Putin’s plan with the calculation that the EU might complain but would recoil from any serious measures against Russia for fear of provoking a wider conflict.

Prices of goods have inevitably risen as well since Gibraltar is so dependent on imported goods, either from the UK or increasingly from Spain or elsewhere in Europe. As we commented in the Chamber’s Annual Report, local businesses have been forced to pass on these price increases as their own financial reserves have been pummelled by the last two years. They are now trying to rebuild their finances so that they can plan for new opportunities and new investment. This will take time.

It will come as no surprise that in the same way the Government is having to be cautious about future spending plans. Over the last two years it has had to borrow like never before to meet its budget commitments. Although much of this additional borrowing has been at low interest rates it is due to be repaid in the next two years. In the likely event that the debt is rescheduled it is likely to be at higher interest rates. The Chamber understands the Government’s position as many members share the same predicament.

With this in mind your board has written to the Chief Minister urging him not to increase the costs of doing business in Gibraltar in the forthcoming budget.

Instead, it has suggested that the Government should look to achieve savings by seeking increased efficiencies from various civil service departments.

Following last year’s sharp increases in social insurance, rates, electricity and the minimum wage, local businesses have been looking to make efficiencies and reduce costs where they can. In July this year the next, much larger tranche of companies will be obliged to begin making pension contributions for their employees.

If local businesses are to stand a fighting chance of adapting to the new trading environment, either with or without an agreement with the EU, then they must be given the time to rebuild their finances. If their costs continue to rise at rates which reflect the much higher levels of inflation then they will be forced to adjust their cost bases accordingly. The implications of that will be cuts in jobs and a concomitant reduction in government revenues as well, at a time when we can all least afford it.

EDITOR-IN-CHIEF

Sophie Clifton-Tucker editor@gibraltarbusiness.gi

DESIGN

Justin Bautista justin@justinbautista.co.uk

Gibraltar Chamber of Commerce PO Box 29, Watergate House Casemates, Gibraltar GX11 1AA

Edward Macquisten Chief Executive Tel: +350 200 78376 Fax: +350 200 78403

info@ gibraltarchamberofcommerce.com

No part of this publication may be reproduced without the permission of the Gibraltar Chamber of Commerce or the publishers.

COVER PHOTOGRAPHER: Alastair Sanchez

CONTENTS WHAT’S IN THIS ISSUE? NEWS 07

26

LATEST BUSINESS NEWS

SPOTLIGHT… 14

SITTING DOWN WITH… John isola, newly-elected ¡Cf›r6›>C>adr6 Crdd

BUSINESS FEATURES 19

20

24

HOW WILL THE PROPOSED TREATY AGREEMENT AFFECT GIBRALTAR BUSINESSES? Speaking with local business owners about their concerns regarding the Treaty, and how it r[a›¡da[[¡Cf¡¡¡T

29

32

35

GOVERNMENT SPENDING PLANS FOR THE UPCOMING FINANCIAL YEAR A brief overview of the expenditure across various sectors, including pictorial representations.

NFT ART EXPLAINED A chat with Pedrol Terol, COO and Co-Founder of Crypto Art I¡[afOar›>C¡Cf˝r[˝df› in NFT crypto art and the art exhibition in Gibraltar.

36

THE FUTURE OF CRYPTOCURRENCY With the recent crash in the global ›rfdaX›OC¡›r here to stay and what is in store for the future of cryptocurrency?

INTRODUCING DOWNTOWN GIBRALTAR The Downtown Gibraltar BID project gears up for launch party, and unveils the area’s new ‘Downtown’ branding.

AN UPDATE ON PRIVATE SECTOR PENSIONS IN GIBRALTAR A¡˛C›>›>›r a fr[df› f¡Crf¡7CdCf›>UKO a[[d[r¡CfGCa[›aa required to provide access to a workplace pension plan to all [C7C[d[r¡T SOVEREIGN GROUP FURTHER EXPANDS ITS FOOTPRINT IN THE MIDDLE EAST Sovereign Group announces the acquisition of PRO Partner GrfPPGgOrfr6›>6rdr¡› rdaf6rda›Crfaf corporate services providers in the Middle East.

BENEFITS OF WORK PLACEMENTS FOR CLUBHOUSE MEMBERS How Clubhouse Gibraltar helps individuals re-enter the ˛rX6r˛C›>¡r›6rd[ra[ rdafC¡T

38

DELOITTE’S 5 MILLION FUTURES STRATEGY HAS REAL LOCAL IMPACT 5 Million Futures seeks to address Cfa[C›r˝rdCf7aC¡ ›ra›Crfafd[rdf›O dr˛Cf7CfC˝Ca[¡˛C›> the skills needed to succeed in ›ra¡rfrdT

40

AT YOUR SERVICE Why technology and Hungry MrfX>a˝afCdr›af›r[›r play in the future and resurgence of the hospitality industry in Gibraltar.

42

KPMG LAUNCHES COMPETITION TO FIND GIBRALTAR’S BEST TECHNOLOGY INNOVATOR GCa[›a>a¡6r›>¡››Cd IrCfKPMG¡rd›C›Crf›rf ›>dr¡›Cffr˝a›C˝›>fr[r7 leader.

45

BEGBIES TRAYNOR GROUP Professional Services Consultancy B7C¡fr a T GrdaX¡ the rebrand of the CVR Global overseas operations with a reception for clients, contacts, and friends.

PEOPLE ON THE MOVE 46 KAAN KORHALILLER Trusted Novus Bank

BRIAN CAETANO & ISABELLA LOMBARD Hassans

NEWS

APPROPRIATION BILL NEW & QUARTERLY COVID FUND GAMBLING STATEMENT PUBLISHED ACT The Appropriation Bill for the financial year 2022/23 was published last month on the 3rd of May.

The Bill provides for Consolidated Fund appropriation of expenditure for the year 2022/2023 in a sum not exceeding £553m, as well as £1m being provided for exceptional expenditure for the McGrail Inquiry.

A sum of £66.9m is provided for Improvement and Development Fund for the capital costs of Government maintenance and projects. Additionally,

£275.8m is sought for the recurrent expenditure of Public Undertakings.

A sum of £6.6m is also provided for the capital expenditure of Public Undertakings.

The fund statement shows that £227.3m has already been attributed to this fund since the beginning of the pandemic up to 31 March 2021, with a further £135m contributed during the 2021/22 financial year.

(Figures and graphs provided on page 20.)

PRIVATE SECTOR PENSIONS REGIME COMMENCES 1ST JULY The auto-enrolment of private sector pensions continues with a 1st July start.

‘Large’ companies with between 101-250 employees will need to provide access to a workplace pension plan (in addition to the existing State Pension) for their permanent staff.

Upon joining the pension scheme, the Act makes it compulsory for both employer and employee to contribute a minimum amount each week or month

A Command Paper on a draft Bill for an Act to repeal and replace the Gambling Act 2005 was issued on 31 May this year. A consultation period on said Paper will be open until the close of August 2022. The Gambling Division will now be holding a series of workshops and consulting with the Gibraltar Betting and Gaming Association.

Gibraltar’s Licensing Authority has previously only considered licensing ‘blue chip’ companies with a good reputation in other jurisdictions with regard to gambling. However, appropriately funded start-ups and expanding operations looking to wholly or partly relocate to Gibraltar will now also be given consideration.

(depending on payment schedule) to employees’ pension funds.

The Gibraltar Financial Services Commission (GFSC) as Pensions Commissioner is tasked with ensuring that all requirements are complied with by the set date, as well as with maintaining a Register of Employers Maintaining Pension Plans.

(More on page 32)

Spring - Summer 2022 | 7

GIBRALTAR BUSINESS

CODES OF CONDUCT

ISSUES FOR RETAIL SECTOR The Office of Fair Trading (OFT) in March issued Codes of Conduct for the Retail Sector. These codes will serve as best practice guidance for businesses that retail in goods to ordinary end consumers.

The OFT hopes the code’s introduction will bring much needed clarity for both businesses and consumers should disputes arise from purchases. In particular, it will assist in terms of expected redress outcomes and timeframes for this.

This should in turn avoid escalation of disputes between consumers and businesses as the code is designed to codify silent areas of existing legislation.

The code of conduct is accessible from the Office of Fair Trading’s website: www.oft.gov.gi/documents/ codes-of-conduct.

VIRGIN VOYAGES BECOMES NEWEST CRUISE COMPANY TO CALL AT GIBRALTAR

The Valiant Lady, from the cruise company Virgin Voyages, made its first inaugural call to Gibraltar on Sunday 8th May. This new ship will call at Gibraltar Port a total of 5 times in 2022. This follows the inaugural visits of two further cruise companies this quarter: Le Bougainville and the Costa Deliziosa.

8 | Spring - Summer 2022

The Valiant Lady, with a gross tonnage of 110,000 and measuring 278 meres long, has a maximum capacity of 2,860 passengers. During its visit to Gibraltar, the ship carried a total of 753 passengers and 1086 crew.

This year will see 184 calls booked; just 13 fewer than in pre-pandemic times, signalling a steady resurgence of Gibraltar’s maritime tourism industry in the wake of the effects of the pandemic.

NEWS

GIBRALTAR INTRODUCES

NEW LEASE

New regulations setting the standard for market integrity in the virtual asset space were published this quarter, with the aim of setting the highest standards for market integrity, while recognising the diversity of the assets and activities within the virtual asset marketplace.

A new lease over the dockyard premises has been granted to Balaena Propco Limited, part of the Balaena Limited group of companies who last month announced their acquisition of Gibdock.

NEW VIRTUAL ASSET LEGISLATION

The amending regulations add a 10th Regulatory Principle to Gibraltar’s Financial Services (Distributed Ledger Technology Providers) Regulations, which stipulate that all DLT Providers operating in Gibraltar

conduct themselves in a manner which maintains or enhances the integrity of the markets in which they participate.

In addition, and consistent with the approach to the other 9 Regulatory Principles, the Gibraltar Financial Services Commission (GFSC) has published a Guidance Note which sets out its expectations of DLT Providers in this context. The guidance note can be viewed at bit.ly/3vlKdld.

FOR DOCKYARD PREMISES

The lease provides for environmental safeguards and an apprenticeship scheme, as well as d demonstrating confidence in Gibraltar’s economy during this period of recovery. The lease provides for a change of control protections not previously included.

Noisy works will no longer be permitted outside of the hours of 8am to 8pm, and there will be a transition to shore power (cold ironing). This will have to be provided under the lease obligations within three years.

Spring - Summer 2022 | 9

GIBRALTAR BUSINESS

Student Experience

Better in Gibraltar

Less time travelling to and from university means more time for you Discover a better student experience 10 | Spring - Summer 2022

unigib.edu.gi

NEWS

NEW SUPERYACHT BERTHING FACILITIES

MAIN STREET BID

As part of the multimillion-pound investment in Ocean Village and Marina Bay, new superyacht pontoons have now been installed.

After years of planning, the Main Street & Surrounds Business Improvement District (BID) project will finally launch this month on Tuesday the 28th of June, under the name Downtown Gibraltar BID Company.

AT MARINA CLUB OCEAN VILLAGE & MARINA BAY Once complete, these new berthing facilities will be the first choice in Gibraltar for superyachts that visit the region, offering powered berths with best-in-class ancillary services and amenities.

Continuing the Marina Club development, over the next 12 months 144 waterside apartments across five buildings, with accompanying resort decks will be delivered.

LAUNCHES THIS MONTH

Downtown Gibraltar BID Company will run for a term of 5 years in line with the Business Plan that was voted in by the majority of the businesses in the BID area. The Business Plan was informed by the Businesses in the area and will be run and managed by businesses for businesses.

Everyone in the BID area will be levy payers, but to fully grasp all the benefits at no extra cost and get your invitation to the launch, register now and become a Member by visiting https://downtown.gi.

(More on the Downtown Gibraltar Bid on page 29.)

Spring - Summer 2022 | 11

GIBRALTAR BUSINESS

EGOV REGISTRATION With many local residents reporting issues trying to register their occupation of property, often inputting their details several times but then being met with an error notification, the Gibraltar Government has extended the deadline from Tuesday, 24th May 2022 to 31st July 2022.

Albert Isola, Minister for Digital and Financial Services, commented that he hoped the extension and new support measures will help people to register - in particular older citizens who may find the process more challenging.

The Register of Occupation Act 2021 requires all residents to register and detail the names of all persons who are residing in their property, and those who fail to do so could face a fine. This has resulted in long queues forming outside

12 | Spring - Summer 2022

the Government’s gov.gi Customer Service hub in Main Street not only with those who were unable to register successfully online, but for those who don’t own iPhones or have access to computers. “People are attempting to register online but the system is not allowing them to,” was one of the comments on social media.

The Register will help to ensure that only those persons or local residents who are entitled to have access to benefits and public services can do so. It will also facilitate the delivery of government eServices and avoid the need for duplication across Government departments as well as cut down on the abuse that exists in parts of the local housing market.

GIBRALTAR BUSINESS

INTERVIEW WITH NEWLY-ELECTED CHAMBER PRESIDENT, JOHN ISOLA Feature by Sophie Clifton-Tucker Editor John Isola is the newly-elected President of the Gibraltar Chamber of Commerce, taking the reins from Christian Hernandez who held the position for an impressive nine years. During this period, John served as Vice-President, shadowing Christian and assisting him with all of his responsibilities.

“This has particularly been the case during the pandemic when Christian and I worked very closely together in working with Government in CELAC, to develop the BEAT measures to assist local businesses,” explains John. “I am very grateful to Christian for his dedication to the Chamber as a director and during his tenure as President of which the last two years were particularly challenging and difficult at every level.”

In his new role John will be tasked with serving the Chamber and its members, which he describes as “a great honour, especially during these interesting but challenging times”. It is also significant for him at a personal level as he follows his father, who was President on two occasions, and his maternal grandfather, who served as President after the war and who holds the record as the longestserving President in the history of the Chamber. “I would like to state now that I have no intention of breaking either of those records!” John quips.

The pandemic undoubtedly impacted everyone and everything, including the Chamber. “This has brought into perspective how we need to improve and possibly change the way that we engage with our members so that we can better represent their concerns and opinions into the future. I want to see the members becoming much more involved in the Chamber’s activities.” John reveals.

The Chamber is now working on a new website, which they hope to launch shortly, and from there, other projects will follow.

PERSEVERING THROUGH A PANDEMIC In the early days of the pandemic, HM Government of Gibraltar created a committee called CELAC or the COVID Liaison and Advisory Committee, which was headed by the Chief Minister and included all the relevant Government departments and agencies, all the various private sector associations representing the various sectors of the economy as well as the trade unions.

The main objective of CELAC was to work together to protect Gibraltar’s workforce and to keep the economy going through the pandemic. At the time, nobody knew how long it would last or how bad things

would get. It was a very uncertain time for everyone, for business owners, for employees and for their families.

The numerous meetings held culminated in the introduction of the BEAT measures to assist businesses and their employees with the aim of ensuring that employees could keep their jobs and that businesses were kept alive so that they would be ready to return to an active status in a very short space of time once the pandemic was over.

The Chamber was actively involved in CELAC with the President and/or Vice President attending all of the lengthy meetings, many of which were held online. Many of the measures included in BEAT were as a direct result of the submissions and lobbying made by the Chamber in these meetings. “Nearly all of the submissions and requests that we made were adopted and these were implemented quickly,” John recounts. “I think that this made a very big difference to local companies as it gave them the certainty that they needed when overheads continued but their sales had collapsed in a matter of days or weeks.”

As the worst of Covid appears to be over in Gibraltar, trading has picked up considerably for the sectors affected as tourism returns, but there is still

Businesses need to be competitive; the jurisdiction needs to be competitive.

14 | Spring - Summer 2022

some way to go before we can say that our businesses have returned to prepandemic levels. As John confirms: “Businesses expect this summer to be good but, treaty negotiations aside, there is concern that the medium-term outlook is not good once the post-pandemic ‘feel good’ factor wears off. Inflation is starting to bite and the effects of the war in Ukraine is putting additional pressure on the price of goods and services. The concern has to be that many of these businesses have eaten into any reserves that they may have had prior to the pandemic despite the help from BEAT. The recent increases in other costs such as social insurance have also dented their finances.”

Regarding the increased costs attributed to the rise in corporation tax, social insurance, and minimum wage over the past year, the Chamber strives to assist the private sector by providing support, lobbying Government, and ensuring that the members’ concerns are heard. “The costs of doing business in Gibraltar can be directly linked to the future prospects of the economy as a whole and therefore of direct relevance to the well-being of the community. Businesses need to be competitive; the jurisdiction needs to be competitive. Competitiveness is not just about the financial cost but also about efficiency and the need to mitigate excessive bureaucracy and red tape.”

If costs continue to rise or if the administrative burden on business continues to increase, Gibraltar’s competitive aspect risks being challenged, which may result in some businesses looking to move to other jurisdictions with the drop in Government revenue that would result.

John believes that this falls within the remit of HMGoG. “It is understandable that over time businesses will need to contribute to the huge costs that the Government has incurred in tackling COVID. But Government should also be looking at meeting some this cost through its own efficiencies by introducing better controls, cutting out waste through the elimination of outdated practices and through the introduction better and faster e-Government.”

In addition, the Chamber takes its responsibility to look after the interests of its members seriously, as well as taking into account the wider community in consultation with its members

Photography © Alastair Sanchez

GIBRALTAR BUSINESS

In whatever scenario the Chamber will consult its members and work with the Government to assist businesses in facing up to those challenges. when making representations to the Government – as any other representative body should.

THE ROLE OF THE CHAMBER 2022 Ultimately, the Chamber’s main role is to represent their members’ interests as best as they can. This can be in the form of bringing to the attention of the Government the concerns and opinions of its members, and of the business community as a whole. Since the Brexit referendum and the subsequent announcement on New Year’s Eve in December 2020, the Chamber has been heavily involved in making a number of representations to Government on the effects of Brexit and the possible consequences to businesses of the different scenarios that may result in the future.

John shares: “We have also worked with other organisations and the Government right through the pandemic. Additionally, we have worked on issues ranging from the reform of Business Licensing and issues of unfair competition to tourism, where the Chamber has prepared a paper on the reforms that in the opinion of the Chamber need to be introduced if Gibraltar is to grow in this area and avoid the risk of being left behind.”

Photography © Alastair Sanchez

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In the past few years, we’ve experienced a number of first-time challenges, such as Brexit and the pandemic, but how has this impacted Gibraltar’s economy? Thus far, Brexit has had a relatively limited impact on our economy, although there has been some disruption to imports from the UK of products of animal origin. These have been overcome with costly solutions or by importing British products already in circulation in the EU. The pandemic affected other sectors significantly; many businesses lost six months of trading entirely. “No business can survive that sort of hit without

FEATURE

some form of assistance,” admits John.

“The worst-affected sectors have been hospitality, tourism-related services and non-essential retail. It is only thanks to the BEAT measures that Government introduced that many of the businesses in these sectors were able to continue trading through the pandemic” GIBRALTAR’S FUTURE REGARDING THE TREATY How does John see the Chamber’s role evolving in the next 4 years – the initial duration of the Treaty, if it gets signed?

“I don’t expect the Chamber’s main role of representing its members to change much. However, what may change are the issues. Clearly this will depend on the outcome of the current Treaty negotiations, but if there is no agreement with the EU then I expect all businesses in Gibraltar to face all sorts of difficulties and challenges. However, if there is an agreement culminating in a Treaty the issues will very much depend on what is negotiated. In whatever scenario the Chamber will consult its members and work with the Government of the day to assist businesses in facing up to those challenges as well as ensuring that they are well placed to take up the opportunities.”

The uncertainty amidst Treaty discussions is worrying all businesses, as there will likely be significant shifts for many sectors. For example, the intention of having a free-flowing border will result in changes for those businesses that trade in physical goods. On the other hand, there are also likely to be opportunities that will hopefully balance out any possible negative consequences.

There is still some way to go, but the parties involved in the negotiations (Gibraltar, Spain, the UK and EU) appear to be optimistic that an agreement can be reached.

How does the Chamber see the Treaty

No business can survive that sort of hit without some form of assistance. impinging on Gibraltar’s commercial footprint? And what will the Chamber’s role be in supporting local businesses beyond this? “All the indications are that if the negotiations culminate in a Treaty that this will be positive for both Gibraltar and the Campo de Gibraltar. As demonstrated in both of the Chamber’s Economic Impact Studies, the growth of Gibraltar’s economy has had a very positive impact on the economy of the Campo de Gibraltar. So Gibraltar’s prosperity has been shared with the Campo for many years as our economy has seen non-stop growth for the last three decades.”

This has undoubtedly had a bearing on the situation today where all parties to the negotiations recognise the importance of reaching a successful outcome. The Chamber was one of the founding members of the Cross-Frontier Group which has lobbied far and wide to ensure that this message has got through.

John concludes: “I think that it is important that with a Treaty we can ensure that the prosperity will continue to be shared, not just for four years but for much longer. Provided that this comes about, I doubt if anyone will want to undo something that is working positively for the benefit of the communities on both sides of the frontier.”

BECOMING A MEMBER OF THE CHAMBER Why should a company, large or small, become a member of the Chamber? What can the Chamber do for them?

Any business, large and small, can

become a member of the Chamber.

John explains: “If you pay business rates and taxes, if you use roads and employ people, if you are overwhelmed by red tape or experiencing problems in dealing with various government departments, then the Chamber is here to help you.”

In a small jurisdiction such as Gibraltar, it is both helpful and reassuring to have a reliable, independent and wellconnected voice to represent you – and this is precisely what the Chamber sets out to do.

“We use our influence, experience and contacts to represent and lobby on behalf of Gibraltar’s business community at all levels. We have been doing this for local businesses for the last 140 years. Over time, businesses change and fashions come and go, but provided we keep getting the fundamentals right we will keep doing what we have been doing for the next 140 years as well.

“With a growing number of members, the Chamber can represent the local business community more effectively and this will be of greater benefit to all of our members. I would encourage anyone reading this interview that is not yet a member to visit our website or call our office to find out how we can help them.”

For more information or to become a member, visit www.gibraltarchamberofcommerce.com, or call +350 200 78376.

We use our influence, experience and contacts to represent and lobby on behalf of Gibraltar’s business community at all levels.

Spring - Summer 2022 | 17

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HOW WILL THE PROPOSED TREATY AGREEMENT?

FEATURE

AFFECT GIBRALTAR BUSINESSES? Feature by Jo Ward Freelance Journalist Chief Minister Fabian Picardo recently said that Gibraltar is “within touching distance of a historic treaty” regarding its relationship with the EU. In May, Fabian Picardo stressed that “nothing is agreed until everything is agreed”, but told the Gibraltar parliament that he believes consolidated treaty drafting will be able to start in the coming weeks.

So what will the proposed Treaty mean for small businesses in Gibraltar?

We talked to the owner of a long standing interior design business who thinks that small businesses need more support.

“There is no doubt that Brexit has negatively affected our company,” she says. “The issue has mostly been around shipping because previously we could get things delivered into Spain and then go and pick them up ourselves, pay our own tariffs and bring them into Gibraltar.”

There is another problem surrounding different coding for different fabrics.

“Previously we were able to consolidate our fabrics under one code, so for instance ten different rolls of fabric would come in at £15, but that now costs £150 just to get through customs because there is a different tariff for each type of fabric.”

Whatever happens going forward with the Treaty, these problems will remain for small businesses. “The shippers in Gibraltar have sole monopoly and because we have got to get our goods in they can charge what they like - and they have got every justification with the cost of petrol going up etc., but the prices for getting anything into Gibraltar now are absolutely astronomical.”

“Retail businesses are suffering and will continue to do so, particularly now

that The Office of Fair Trading (OFT) has recently issued a Code of Conduct for the Retail Sector,” says our contact.

The Code states that ‘If goods are faulty within six months from purchase, there is a presumption they were faulty at delivery and it is for the trader to prove otherwise’. “This makes businesses very vulnerable because clients are able to go back to the shop and return the item.”

Our shop owner cites an item that was returned because it had gone rusty but that had clearly been kept outside even though it was for interior use only. “It’s all stacked up against the retailers and there is nothing to help us.”

The possible introduction of VAT in Gibraltar is causing uncertainty.

Historically, the economic future of Gibraltar has been tied in to its ability to maintain open borders for trade, so

Retail businesses are suffering and will continue to do so.

the introduction of VAT would have a detrimental effect on the retail and wholesale sectors and it would add yet another complication for local businesses struggling to trade in the aftermath of the Covid-19 pandemic.

The OFT’s Code of Conduct for Retailers is available to read and download at https://bit.ly/3tLfPiL.

GIBRALTAR BUSINESS

GOVERNMENT SPENDING PLANS FOR THE UPCOMING FINANCIAL YEAR

Her Majesty’s Government of Gibraltar published its Appropriation Bill on the 3rd of May, budgeting for expenditure for the financial year ending 31st March 2023.

Under the constitution, no expenditure can be incurred until authorised by Parliament. This Bill will, once passed into law, provide the government with the authority it needs.

In his speech the Chief Minster, the Hon. Fabian Picardo, described the financial effects of the Covid pandemic on both the level of revenue and extra costs associated with it. The pandemic caused additional costs of £362m for the financial year to the 31st March 2022.

Additional expenditure of £40m is

provided for under the Covid Response Fund, in the current budget. He also described how Covid impaired the two traditional heads of income, duty and corporation tax. The extent by which duty and corporation tax contribute to overall revenue can be seen in the green section of last year’s pie chart below.

Total Revenue (2022/23) £633.5m

20 | Spring - Summer 2022

FEATURE

Expenditure is set out in the six parts of Schedule 1 of the Bill as follows:

GBP Millions

1. Consolidated fund expenditure

£553m

2. Consolidated fund contributions

£70m

3. Consolidated fund exceptional expenditure

£1m

4. Improvement and development fund expenditure 5. Recurrent expenditure of public undertakings 6Capital expenditure of public undertakings

£67m £276m £7m £974m

A pictorial representation of each of the expenditure sectors can be seen in the pie chart depicting last year’s overall government expenditure: A detailed analysis of each of the above expenditure headings is set out in the Bill (www.bit.ly/AppropriationBill22), the first part of which can be found on the facing page.

Total Expenditure (2022/23) £684.2m

Details of the expected revenue remains unknown at this stage. However, details of revenue in the past four years are shown in the bar chart below:

Revenue in the year to 31st March 2022 was £684.2m.

It would be reasonable to expect revenue in the year to 31st March 2023 to be equal to or more than this amount.

Spring - Summer 2022 | 21

GIBRALTAR BUSINESS

CONSOLIDATED FUND EXPENDITURE 2022/2023 1 Treasury 2 No.6 Convent Place 3 Office of the Chief Technical Officer 4 Customs 5 Income Tax 6 Parliament 7 Human Resources 8 Immigration and Civil Status 9 Financial Secretary’s Office 10 Government Law Offices 11 Office of the Deputy Chief Minister 12 Civil Aviation 13 Environment 14 Collection and Disposal of Refuse 15 Upper Rock Tourist Sites and Beaches 16 Education 17 Gibraltar University 18 Heritage 19 Culture 20 Driver and Vehicle Licensing 21 Technical Services 22 Social Security 23 Statistics Office 24 Economic Development 25 Procurement Office 26 Justice 27 Gibraltar Law Courts 28 Policing 29 Prison 30 Equality 31 Civil Contingency 32 Gibraltar Regulatory Authority 33 Town Planning and Building Control 34 Office of Fair Trading 35 Fire and Rescue Service 36 Airport Fire and Rescue Service 37 Housing 38 Employment 39 Youth 40 Sport and Leisure 41 Digital Services 42 Information Technology and Logistics Department 43 Broadcasting 44 Financial Services 45 Gambling Division 46 Health and Social Care 47 Gibraltar Health Authority – Elderly Residential Services Section 48 Care Agency 49 Drug & Alcohol Awareness & Rehabilitation Services 50 Utilities 51 Business 52 Tourism 53 Postal Services 54 Port 55 Maritime Services 56 Gibraltar Audit Office 57 Supplementary Provision

£26,364,000 £6,655,000 £336,000 £11,002,000 £2,814,000 £1,683,000 £5,077,000 £9,268,000 £785,000 £6,438,000 £2,797,000 £2,987,000 £15,890,000 £7,849,000 £4,624,000 £62,885,000 £1,000,000 £1,739,000 £3,420,000 £1,653,000 £3,722,000 £25,633,000 £578,000 £16,398,000 £339,000 £2,278,000 £2,160,000 £17,549,000 £4,132,000 £1,140,000 £387,000 £2,400,000 £1,184,000 £650,000 £5,496,000 £3,350,000 £10,161,000 £1,865,000 £668,000 £7,341,000 £1,505,000 £7,130,000 £5,550,000 £3,875,000 £938,000 £125,315,000 £23,369,000 £19,330,000 £510,000 £56,977,000 £893,000 £2,173,000 £4,013,000 £7,028,000 £1,237,000 £1,292,000 £9,000,000

£552,832,000 22 | Spring - Summer 2022

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GIBRALTAR BUSINESS

Introduction caption goes here

NFT ART EXPLAINED Feature by Gerry Kelly

Feature by Jo Ward Freelance Journalist Firstly, what is an NFT? It means nonfungible token, and non-fungible means that these cryptographic tokens are unique and can’t be replicated. NFTs can be used to represent ownership of unique items such as a jpg image, music, or, as in this case - digital art, and each one has a distinct serial number, with the transaction history of each NFT stored on the blockchain.

For six days from 29th April to 4th May, Crypto Art Island, in collaboration with Wise Art, held Europe’s first NFT art fair at XAPO Bank in Casemates where twenty-five world-renowned NFT artists exhibited exclusive NFTs for investment purposes.

Pedrol Terol, COO and co-founder of Crypto Art Island, explains how his involvement in NFT crypto art came about. “My career has always been in the art world, but more on the music side, and from there I started managing artists – sculptors and painters in traditional art,” he says.

Pedro tells how his company was working on different ideas and projects including a movie with a Spanish producer, and that when they were looking for the person to do the special effects they got in contact who someone who works

24 | Spring - Summer 2022

typically with Netflix America. “Over a weekend he designed a digital ring and was astounded when the three digital copies of this ring each sold for $1.5 million, so he quickly convinced me that crypto art was going to be the next big thing in the art world.”

Explaining that he started to get attention from artists who wanted to be involved in crypto art, Pedro says that they then decided to hold a physical exhibition so that investors could not only access the art by computer or blockchain, but so that they could talk to the artists. “What we are seeing is a different way of looking at and investing in art.”

Pedro says that the NFT craze hit new highs in March 2021 when Christie’s auctioned off a digital collage by digital artist Michael Winkelmann, known professionally as Beeple, for nearly $70m, immediately making him the third-most expensive living artist in history.

“At Crypto Art Island we provide a platform for artists who are already famous in crypto art but we also help artists make the transition from traditional art to digital art,” Pedro says. “The art exhibition in Gibraltar included artists that have an established reputation such as Javier Arrés or Gala

What we are seeing is a different way of looking at and investing in art.

Mirissa who are already selling their crypto art for a lot of money, as well as other artists who have just started creating crypto art.” Carol Carpenter is an abstract watercolour artist who was one of those artists who wanted to make the transition to crypto art. “We made a project with a 3D immersion inside her paintings, mixing art with the new digital possibilities and we added some unique music,” Pedro explains.

NFTs are giving more power to content creators than ever before. Traditionally, artworks have been collected by museums or galleries who then sell them to private collectors, but crypto art can be freely shared with the public on social media sites like Instagram or Twitter

FEATURE

without any monetary transactions involved, so anybody can look at it, but only the owner can see something that has been encrypted in that artwork by the artist. “We have an artist who has created an NFT that interacts with the person watching it,” Pedro says. “This NFT recognises how your eyes move around the picture and moves where you look - so if you keep your vision still for more than five seconds in one part of the NFT, it will take you inside to another secret NFT.” So in Pedro’s opinion is investing in NFT’s a good idea? “Some people buy crypto art for $5,000 and go on to sell for $20,000, and now people who invest in crypto coins are also investing in crypto art.” However, prices depend heavily on demand and the prevailing market conditions. The majority of NFTs reside on the Ethereum cryptocurrency’s blockchain, a distributed public ledger that records transactions, and although Parasol_printing_ Abril 2021.pdf

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20/04/2021

the recent cryptocurrency crash saw the value of Ethereum drop to as low as $1,704.05 per coin, Pedro maintains that the value of the art bought for $5,000 would have kept its price.

Crypto Art Island’s next physical exhibition will be held in Madrid in October this year where Pedro says they will exhibit not only crypto art but also video games and art of the metaverse.

The metaverse is a broad term for Web 3.0 (the upcoming third generation of the

The best place to live will be in the metaverse.

internet where websites and apps will be able to process information in a smart human-like way) that will change the way we socialise, work, play video games and interact. “The best place to live will be in the metaverse,” Pedro comments.

“The future is bright for NFT art, or for any NFT,” Pedro states. “Imagine in the future that we will be able to have meetings in the metaverse using avatars, but we will also have to time to disconnect and have social interaction with others as well, particularly in terms of art in a physical gallery.”

NFTs potentially open up exciting opportunities for both art collectors and artists, the former gaining verifiable proof of ownership with an NFT art platform and for the latter, those artists who have previously struggled to enter into the traditional art market, being able to explore new gateways with NFTs.

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GIBRALTAR BUSINESS

THE FUTURE OF CRYPTOCURRENCY With the recent crash in the global cryptocurrency market, is crypto here to stay and what is in store for the future of cryptocurrency?

Feature by Jo Ward Freelance Journalist

Was it panic over inflation and fears of a potential recession that was behind the crypto market crash? We ask Sam Buxton, CEO at Damex (Digital Asset Management Ltd.), a licensed and regulated cryptocurrency trading company, about his thoughts on the future of cryptocurrency.

“The crypto space has been around for over thirteen years now and there have been several other crashes or corrections and every time there has been a fair amount of FUD (‘fear, uncertainty, and doubt’) in the market in the belief that this is a grand Ponzi scheme and there is no sustainability and real future,” Sam explains, going on to say that there has been billions of dollars’ worth of investment into the cryptocurrency space and that governments and massive institutions are still building and investing in infrastructure in this industry for a reason.

“This is an industry that will have serious implications on the way we live and go about our lives in the future and it is hard to fathom what those would be - similar to a way in which it would be hard to fathom the implications of Facebook and social media in our lives back in 2006/7 when people first started talking about it - except maybe it is amplified because blockchain and cryptocurrency’s industry is finance and the economy whereas social media was more communication and information.”

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This is an industry that will have serious implications on the way we live.

“Cryptocurrency and the blockchain industry is absolutely here to stay,” says Sam Buxton “It is not going anywhere, the recent market crash or correction or bear market recycles are not specific to the cryptocurrency industry. There was a specific event that triggered this sell off which was the collapse of a specific DeFi (decentralised finance) project protocol called Luna - UST or Terra Luna – which is a sector of the cryptocurrency or the blockchain industry that has been put to test in the last couple of weeks.”

Sam comments that whether DeFi has a future or not is potentially what’s been most in question recently as far as decentralised stable coins and currencies are concerned, but that the overall industry - the blockchain and cryptocurrency industry - is here to stay.

Asked if the layman, such as myself, should panic if they have invested in cryptocurrency, Sam is keen to point out that the layman should see this as a really nice discount and opportunity to buy in at

50% cheaper than what the markets were two weeks ago.

“This market is in its nascent phase and therefore it is extremely volatile, so the trends can seem exaggerated - the selloff isn’t at 10%, it is 50% decline - but if you look historically the growth versus the sell-offs is only up trending and if you look at the size of the market - not only the prices but the size of the addressable market – in 2018 there were under 20 million people in the world that traded cryptocurrencies and last year there were 200 million,” Sam states.

“That’s ten times growth in under two years in the addressable market and the stats haven’t come out yet, but I wouldn’t be surprised when they come out later this year that that’s up to half a billion people globally now.”

In his opinion, Sam says that over the next couple of years there will likely be multiple billions of people interacting with cryptocurrencies and blockchain technology and when there is more adoption and more usage it stabilises the

FEATURE

market, and that is something that we will see in the future.

Historically, Gibraltar has been a global leader in cryptocurrency regulation.

Gibraltar recently published a 10th Regulatory Principle amendment requiring crypto firms to respect the integrity of markets in which they operate.

Sam explains that the cryptocurrencies are traded on marketplaces - in other words exchanges - where if you want to buy £20 worth of bitcoin you go to a marketplace, put your order in and that order is then matched by people selling their cryptocurrency at the exact same time, so you’re essentially engaging in a P2P transaction on the marketplace or exchange.

“If you want to sell £20 worth of bitcoin at this price and there are a thousand people around the world that are willing to buy that from you at that price, that exchange is done,” Sam clarifies. “The other way in which it happens is where you go to an exchange, put your order in and there is actually no buyer to fulfil your sale order and therefore the exchange comes in and buys it off you, and then you start to enter into what is market making on secondary markets or exchanges.”

Market making is where the exchange, or somebody in partnership with the exchange, creates the liquidity and ensures that there is always enough buy or sell side for it to be a good exchange to come and do business with. “But within that there is a fine line between creating an environment which is good for customers because you want to be

able to satisfy your customers’ orders but then there is a very fine line between what is ethically ok and where it starts to become quite grey and shady where these market makers are actually manipulating prices,” Sam says, going on to state that if there is very low liquidity - low volume on an exchange - then the market maker is effectively the Mafia and can create synthetic environments . “That is where there is a thin line and I think that what the regulators are trying to do is to ensure that the exchanges that come to Gibraltar - because we have a lot of big names coming here now - are operating their marketplaces in very transparent and ethical ways.”

Querying how the 10th Regulatory Principle can be implemented if everything is untraceable and anonymous, Sam explains that there are some cryptocurrencies that are completely anonymous – such as cryptocurrencies like assets where one asset is transferred from one wallet to another - that is completely anonymous and there is no traceability. “In Gibraltar, the regulatory framework is such that you are not allowed to trade those assets - you can’t trade the likes of Moneros, eCash, Pirate Chain and all these cryptocurrencies that are completely anonymous - the regulators don’t support those specific assets,” he says. “What the regulation covers is not the assets, it is the actual regulated exchanges and how they operate - so it is not the same - they are mutually exclusive and the anonymous characteristics are specific to assets whereas the regulators are honed in on the gatekeepers of the industry which are

the exchanges that we regulate in - so they are mutually exclusive and they are two different things.”

So how can the FSC (Gibraltar Financial Services Commission) enforce this outside of Gibraltar? Sam replies that he doesn’t think they can. “The FSC can only enforce it on to the companies that they regulate here who might operate outside of Gibraltar,” he says. “What we can say is that the marketplace and our industry needs to make sure that the bad actors slowly fade away and I think that what the regulators have decided to do with the 10th Principle is definitely putting their foot forward and incentivising other jurisdictions to follow those too - to ensure that as an industry we continue moving in the right direction.”

“It is a brave move, because you don’t want to create an environment where your regulated entities are operating at a distinct advantage, which sometimes can be the case, but it is brave because you run the risk of actually losing market share,” Sam comments.

“As far as I’m concerned if you have to choose between losing market share or creating an environment where you promote best practices - I know which one I would go with and that is promoting best practices in our industry, and if there is a loss of market share I believe it is in the short term and therefore the regulators and our government have a long term prospective.

“Cryptocurrency and the blockchain industry is absolutely here to stay,” says Sam Buxton Spring - Summer 2022 | 27

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FEATURE

The Downtown Gibraltar BID project gears up for launch party, and unveils the area’s new ‘Downtown’ branding.

Feature by Sophie Clifton-Tucker Editor

Spring - Summer 2022 | 29

GIBRALTAR BUSINESS

Over three years of meticulous planning and lengthy discussions with the Gibraltar Government and business owners will finally come to a head at the end of the month, with the formal launch of the Downtown Gibraltar Business Improvement District (BID).

BID BENEFITS ‘Downtown’ encompasses the Main Street and surrounding areas; those businesses which fall within this region will benefit from a multitude of services and improvements to our bustling town centre, including: • • •

Reduced business costs through preferred supplier programs & other initiatives Better marketing & promotional events Networking meetings & events

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• • • •

Ongoing business support Landscaping & planting to nurture a greener, aesthetically pleasing town centre Access to key town centre performance information Regular patrols by our Town Rangers

•

•

OBJECTIVES The BID Company is a ‘not for profit’ company, limited by guarantee, governed by a voluntary Board of Directors, made up of local businesses, who will be directly accountable to all BID levy payers and responsible for delivering the BID projects and services and maintaining the BID objectives. These are to: •

Direct and deliver over £4,000,000 of investment over the next five years;

•

Carry out exciting projects and events to drive footfall and spend in the town area, raise its profile, help its continued recovery and develop its position as a vibrant destination for local residents and visitors alike; Give businesses the support they need to flourish by driving down business costs, providing business development opportunities, being a strong voice, championing your interests; and Improve the trading environment, making our town area a better place for you to do business, as well as a better place for you, your staff and customers to enjoy.

Downtown Gibraltar BID Company will run for a term of 5 years in line with the Business Plan (viewable at www.mainstreetbid.com) that was voted

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in by the majority of the businesses in the BID area. The Business Plan was informed by the Businesses in the area and will be run and managed by businesses, for businesses.

THE LAUNCH Following the successful vote in favour of setting up a BID during an independent and confidential postal ballot at the end of 2021, the BID Project Team are gearing up to formally launch on the 28th of June 2022.

Jace Tyrrell, Chief Executive of New West End Company, will be in attendance as an official guest speaker for the launch.

New West End Company is the UK’s leading BID and business partnership for London’s West End, representing the people and organisations behind the world’s largest retail destination. It delivers management and marketing services to over 80 streets within London’s retail heartland including Bond Street, Oxford Street and Regent Street.

Its aim is to drive the change to create a truly unique and sustainable West End experience, unlock the barriers to economic growth and further strengthen the commercial success of the area with its 150,000 employees and £2bn annual contributions to UK GDP. Jace leads the representation locally and globally of 600 businesses across retail, leisure and real estate in London’s West End with a property portfolio of £3.5bn and an annual turnover of £10bn. He is a company spokesperson and member of the Board.

The BID team are looking forward to introducing Downtown Gibraltar, and subsequently fostering a cleaner, greener town centre that will enhance experiences for visitors and locals alike, whilst facilitating better marketing and networking opportunities for business owners.

To receive your invitation to the launch, and to get the most out of what the BID has to offer, don’t forget to register at downtown.gi.

VACANCY Downtown Gibraltar is looking for a motivated individual with excellent interpersonal skills to fill the role of ‘Downtown Liaison’.

The Downtown Liaison will be at the core of our work and serves to ensure a high-quality welcome, and experience for our visitors. You will also create a useful, harmonious and productive working relationship with businesses by sharing appropriate information, outlining opportunities and resolving issues.

The role of the Downtown Liaison is to be a visible presence on the streets within the area and to act as the eyes and ears of the company monitoring, reporting and escalating appropriate matters.

Applicants must have: 1. Previous experience in a face-to-face customer contact environment 2. A minimum of 2 years previous work experience gained from any industry To apply, please send your CV and cover letter to stuart@downtown.gi.

Spring - Summer 2022 | 31

GIBRALTAR BUSINESS

AN UPDATE ON PRIVATE SECTOR PENSIONS IN GIBRALTAR Feature by Feature by Gerry Kelly, Sovereign Group CEO

The Private Sector Pensions Act 2019 was introduced to ensure that every member of the Gibraltar community will be financially protected in their later years.

32 | Winter - Spring 2022

SPOTLIGHT

The Private Sector Pensions Act 2019 was introduced to ensure that every member of the Gibraltar community, including those working in the private sector, will be financially protected in their later years. Like the ‘auto enrolment’ pensions regime in the UK, the Act makes it compulsory for all employers in Gibraltar to provide access to a workplace pension plan, in addition to the existing State Pension, to all eligible employees.

Should an employee choose to join the pension scheme, the Act also makes it compulsory for both the employer and employee to contribute a regular minimum amount – 2% of earnings – to the employee’s pension fund.

Implementation of the Act was deliberately phased to give smaller employers more time to adjust to the new requirements. The first applicable date was 1 August 2021, when ‘Enterprise’ employers (those with over 250 employees) were required to provide a workplace pension plan to any employee who requests it.

The second tranche of employers will be impacted this year, when ‘large’ employers – those with over 100 employees – are required to provide a workplace pension plan for their employees by 1 July 2022.

The deadlines for employer compliance under the phased implementation are as follows: • ‘Enterprise’ employers (over 250 staff) – 1 August 2021 • ‘Large’ employers (101 to 250 staff) – 1 July 2022 • ‘Medium’ employers (51 to 100 staff) – 1 July 2025 • ‘Small’ employer (15 to 50 employees) – 1 July 2026 • ‘Micro’ employer (14 employees or less) – 1 July 2027 REGISTRATION The Gibraltar Financial Services Commission (GFSC) is appointed as Pensions Commissioner under the Act to ensure that the requirements are complied with by both employers and the administrators of pension schemes.

The GFSC is responsible for establishing and maintaining a ‘Register of Employers Maintaining Pension Plans’. Every eligible employer is required to register, within 90 days of the dates above, by submitting the following information:

• Documents evidencing the pension plan and evidencing the participation by employees.

• The name, occupation, qualification and address of each person on the board of trustees and/or the name and address of the administrators of the pension plan.

• Details of all employees participating in the pension plan.

• Details of any employees who have elected not to participate in the pension plan.

• The details of any employees who do not satisfy the eligibility criteria to join the pension plan, together with an explanation as to why.

Once the GFSC is satisfied that an application complies with the Act, it has 21 days to acknowledge the application and enter the details of the employer and its employees onto the register.

ONGOING REQUIREMENTS Employers are further obliged to inform the GFSC – within 30 days of the event – in respect of any of the following events: • A new employee being employed.

• Termination of employment or redundancy of any employee.

• Any material changes in the terms of employment of any employee.

• A decision to join a pension plan

by an existing employee who had previously decided not to join.

SPANISH-RESIDENT WORKERS The position of Spanish-resident workers in Gibraltar, as to whether contributions to their Gibraltar pension plan will be accepted by the Spanish Ministry of Finance (Ministerio de Hacienda) for Spanish tax relief purposes, has not yet been clarified.

As a result, we are seeing many Spanishresident workers electing not to participate in pension plans provided by employers in Gibraltar. Hopefully this issue will be addressed as part of the ongoing negotiations to establish Gibraltar’s post-Brexit relationship with the European Union.

SOVEREIGN PENSION SERVICES (GIBRALTAR) To assist Gibraltar employers of any size to meet their new ‘auto enrolment’ pension obligations, Sovereign Pension Services (Gibraltar) can design and set up Occupational Pension Schemes that will satisfy all the criteria under Private Sector Pensions Act. We also have the capacity and expertise to administer these pension plans on behalf of Gibraltar employers, such that clients can be assured of the maximum business benefit and the minimum business disruption.

Spring - Summer 2022 | 33

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FEATURE

SOVEREIGN GROUP FURTHER EXPANDS ITS FOOTPRINT IN THE MIDDLE EAST Sovereign Group, the Gibraltarheadquartered independent global provider of corporate, private client and retirement planning services, is delighted to announce the acquisition of PRO Partner Group (PPG), one of the foremost company formation and corporate services providers in the Middle East.

as global investment picks up.

This strategic acquisition combines the regional strength of PPG in the UAE, Qatar, Oman and Saudi Arabia with the global reach of Sovereign Group to deliver tangible benefits and opportunities to the clients and staff of both parties.

“In staffing terms, this partnership brings our headcount in the Middle East and Africa to almost 200, making us one of the best resourced corporate service providers in the region. It also gives our client base a platform in Oman and Qatar for the first time. We are very excited by this acquisition and are delighted to welcome PPG staff and clients to the Sovereign Group.”

WHY THE MIDDLE EAST? Sovereign opened its first office in the Middle East in Dubai in 1998. Since then, the region has experienced significant growth as the Gulf nations look to diversify their economies away from a reliance on oil and Sovereign has extended its footprint by opening further offices in Bahrain, Abu Dhabi and Saudi Arabia.

Foreign direct investment (FDI) inflows in the GCC increased by 12.4% to USD27.7 billion in 2020, led by strong increases in inflows into Saudi Arabia, Oman and the UAE, according to the UN’s annual World Investment Report (WIR), released in June 2021.

The upward regional trend is expected to continue as new laws bed in – notably, the UAE’s FDI Decree, permitting 100% foreign ownership of onshore companies, and Saudi Arabia’s Private Sector Participation Law, setting out a clear framework for privatisation as Public Private Partnerships (PPPs) – and

“We have been looking to expand our presence in the Middle East and Africa region and to increase our capacity in the corporate client market and I believe we have found a great fit in PPG,” said Sovereign Group CEO Gerry Kelly.

WILL GIBRALTAR BENEFIT FROM THIS ACQUISITION? Yes. Gibraltar is our Head Office and many of our Group functions are centralised here. IT, legal, compliance and finance are all Gibraltar-based and additional resourcing will be required in all these areas following the acquisition.

It will also be of benefit to our existing client base if they are doing business, or intend to do business, in the Middle East, and it will further be of interest to our many Gibraltar-based business introducers. Doing business in a foreign market can be difficult and having a local firm with Sovereign’s Middle East exposure, expertise and experience will be a great advantage.

IS SOVEREIGN LOOKING AT FURTHER ACQUISITIONS? Yes. Since launching in Gibraltar in 1987, Sovereign has since grown into one of

the largest independent corporate and trust service providers in the world with more than 500 employees. We have established a global office network and currently manage over 20,000 structures for a wide variety of clients – companies, entrepreneurs, private investors or highnet-worth individuals and their families.

Our assets under administration now exceed £20 billion.

We expect to see further consolidation in the trust and company sector over the coming few years and are actively looking for other opportunities in Gibraltar and elsewhere that match our investment criteria. Last year we acquired STM Fidecs Management Limited (FML) and STM Fiscalis Limited here in Gibraltar.

These came hard on the heels of our acquisition of First Rock Trustees in Gibraltar in 2020.

It was precisely with acquisitions like this in mind that Sovereign moved to occupy larger premises providing 1,300sqm of office space on Main Street in 2020, a substantial investment in the future of our business on the Rock. We now employ over 150 staff in Gibraltar and have become one of its most significant private sector employers. We will continue to look at expansion both in Gibraltar and elsewhere.

For more information, visit www.sovereigngroup.com or call +350 200 76173.

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GIBRALTAR BUSINESS

BENEFITS OF WORK PLACEMENTS

FOR CLUBHOUSE MEMBERS How Clubhouse Gibraltar helps individuals re-enter the workforce with support from local companies.

It looks as though the worst of the Covid pandemic has passed but the experience of the last two years or so is likely to have lasting effects on many individuals who have had to suffer the mental anguish of successive lockdowns.

What the pandemic did reveal was the extreme toll which mental illness can take on the individual and on their families and those who are close to them.

The effects of this can be devastating and in some cases, people have been forced to leave their job as they find the stress of dealing with mental illness too much to deal with.

It is not always obvious that someone is suffering and the historic stigma associated with mental illness and depression has tended to bury any public acknowledgement that anything is wrong.

Yet it is this lack of acknowledgement which can lead an individual to distance themselves from their peers and from their families. This leads to a loss of confidence and fear of rejection. In turn this follows a downward spiral into a sense of worthlessness and isolation. Loss of interest in people or daily activities is mixed with lack of energy, increased anxiety and increased irritability. Once this isolation sets in it can be very difficult

36 | Spring - Summer 2022

to break the cycle.

Clubhouse Gibraltar has been helping people who have struggled with depression and other mental illnesses to get back on track, rebuild their confidence and rebuild their lives. It has a very dedicated team of volunteers who help people in a number of ways.

Since it was set up in 2009 Clubhouse has been working with local companies to find work placements for individuals who are ready to take on new challenges following a period of mental illness.

Getting back into the workforce continues to be a high priority for people living with serious mental illness: usually four out of five people with mental illness are unemployed. It is a difficult cycle to break. Without the self-esteem or motivation to apply for a job, people cannot begin to gain the confidence and sense of worth to demonstrate their ability in the workplace and if they do not have a job, they cannot begin to develop their skills or regain their self-assurance which many others take for granted.

Fortunately, Clubhouse has been helping individuals to regain their lost confidence and re-enter the workforce one step at a time.

It is not always obvious that someone is suffering.

Clubhouse helps people re-enter the workforce through their Transitional Employment Programme placements (TEPs).

TRANSITIONAL EMPLOYMENT PROGRAMME (TEP) Transitional Employment is a highly structured programme for people returning to work in a local business.

Transitional employment is specifically designed as a vocational rehabilitation programme where a member can gain or re-gain the skills and confidence necessary to have a job and be employed in a ‘real world’ position. It is not a way for an employer to get free labour.

The employer is demonstrating their commitment by helping an individual to develop their skills and confidence in the workplace. The feedback from local employers has been very encouraging.

FEATURE

Placements take place at the employer’s premises and are usually part-time (between 10-20 hours per week).

This enables people undertaking the placements to their build confidence through the job as they learn (or relearn) skills and get used to being in a structured working environment.

In these placements, Clubhouse works with each employer to prepare the position for each candidate and develops an ongoing relationship with the employer. Clubhouse provides onsite training and support during each work placement. Individuals on a TEP receive a wage at or above the minimum wage from the employer for the work they undertake. Clubhouse Gibraltar staff provide training, support, and absentee cover on all positions. No formal interview is required. After an initial period is agreed with the employer, the employee might move to a placement with another employer or in some cases move to independent employment.

A number of prominent local employers are currently participating in Clubhouses’ TEP scheme and the Chamber has been asked if it would promote the scheme to its members in the hope that other local employers

would also offer one or more placements.

Kathleen Victory, HR Manager at Saccone and Speed said that the company is a big supporter of Clubhouse’s TEP programme. “We have really enjoyed our experience with the Clubhouse programme and it has been lovely to see how well they have progressed during their time with us. They have been a great help working in our busy accounts department and the work has given them a real sense of purpose as well.”

Asked why Marks & Spencer decided to offer an employment placement to a Clubhouse member, Chris Walker said, “As a prominent member of the business community we wanted to play our part and give some of these people a stepping stone back into the workplace. We currently have two Clubhouse members working with us.”

He told Gibraltar Business that company’s experience of working with Clubhouse “had been fantastic. They are very helpful in preparing for a placement and are always on hand if we have any questions. Our staff have also been very happy to interact with the Clubhouse members and it’s been really great to see these people develop in confidence whilst they have been working with us.

For us the individuals benefit and the staff benefit so it works well for everyone.”

If you think that your company would be able to participate in Clubhouse’s Transitional Employment programme, send an email to Clubhouse’s CEO, Tania Aguilar at admin@clubhousegibraltar.com. It is a very worthwhile cause and your company and staff would be helping someone to get their lives back on track.

We wanted to play our part and give some of these people a stepping stone back into the workplace.

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GIBRALTAR BUSINESS

DELOITTE’S 5 MILLION FUTURES STRATEGY HAS REAL LOCAL IMPACT

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FEATURE

Deloitte has developed a social impact strategy called 5 Million Futures (5MF) which aims to help five million people around the world get to where they want to be through access to education and employment. 5MF seeks to address inequality by overcoming barriers to education and employment, empowering individuals with the skills needed to succeed in today’s economy.

We are focussed on maintaining ‘togetherness’

At a local level Deloitte has worked with Clubhouse Gibraltar over the past 18 months to raise money to support the vital work which Clubhouse does in the community. As well as fundraising, it has raised over £14,000 for the charity - staff from Deloitte have worked actively with Clubhouse by supporting members with soft skills training as part of Clubhouse’s Positive Pathways programme. Deloitte has also donated laptops so that Clubhouse members can update their skills for using Word and Excel programmes.

Deloitte’s Managing Director, Reshma Bhambhwani said, “Over the last 18 months we have worked hard to implement a number of initiatives to make our staff comfortable with the ever-changing working environment as a result of the pandemic. We are focussed on maintaining ‘togetherness’ by implementing various creative initiatives, some of which are still ongoing.”

Deloitte is also a founding member of the Global Business Collaboration for Better Workplace Mental Health. This was established in January 2021 to advocate for and accelerate positive change toward mental health in the workplace.

More information can betterworkplacemh.com.

be

found

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GIBRALTAR BUSINESS

AT YOUR SERVICE Why technology and Hungry Monkey have an important role to play in the future and resurgence of the hospitality industry in Gibraltar.

The home food delivery sector has quickly emerged as an ever changing, fast growing industry across the world and was one of the very few sectors to thrive during the blackout period of 2020/2021. Consumers from within the industry now demand more control about how, when and where they want their deliveries, coupled with more and more providers wanting a slice of the business growth that online ordering for customers can duly bring.

The implementation and advancement of food delivery apps over the last 10 years has increased the speed and convenience of having your favourite foods and goods delivered at the touch of a few buttons, with advances in technology forging the path for this to transpire, and convenience being seen as one of the biggest commodities in today’s consumer environment.

Consumers are now embracing online grocery shopping and the majority of supermarkets, service stations and convenience stores are choosing to offer these options as extra sales streams to boost and optimise revenues.

The narrative neatly fits for Gibraltar. I only need a couple of bits and pieces, why move the car or use the stairs? I can save time. Spend more time on something else worthwhile around the house. It’s time we want more of, with the delivery services duly obliging.

Lockdown submerged us all very quickly into the unknown world of online ordering and we are now seeing a hangover of these habits with the trends remaining of us wanting to buy local and

support small businesses but wanting the options to order online and having the products delivered direct to our door.

But eating out shouldn’t go out of fashion; and it won’t. The Hungry Monkey ethos of supporting our partners through our platform, means encouraging consumers to visit the venues as equally much as to order a delivery.

Go sample the ambience of our venues; there’s a whole lot of it out there, attend wine tastings, live music events, DJ nights, cookery classes, club meetings, comedy themed experiences, whatever our hospitality industry has to offer; after all enjoying and experiencing a

venues products in -house would mean a consumer being more likely to order at home on another occasion, when it’s more convenient to stay in.

We continue to encourage our customers to eat out with offers of discount cards being added to takeaway orders from certain venues which can be redeemed on future visits to the venue ; which we see as a customer wins restaurant wins, everyone’s happy scenario.

In short, we believe improving and advancing the hospitality sector through technology across the board - and full circle - will actually boost the consumers appetite for going out and having a good

It’s time we want more of, with the delivery services duly obliging.

40 || Summer Spring - Summer - Spring 2022

FEATURE options for venues to build their own specific apps through our software, click and collect services and pay at table solutions to help venues maximise sales, offer brand loyalty and raise awareness, and provide the convenience today’s consumers demand.

time and enjoying all the local events we have to offer.

Although some restaurants are still struggling with the impact and shift in consumer trends since 2020, which gives credibility to the notion of the use of technology to create convenience and efficiency on-site, others have embraced the challenge and are blooming in the summer of 2022.

Understanding that technology and innovation has a key part to play in the future of not just the food delivery industry but in-house technology too, including pay-at-table solutions via Apple and Google Pay, contactless payments along with integrated POS systems to help synchronise and align stock processes and customer management with inbuilt data analytics.

There’s so much to be optimistic about in the tech and food hospitality industry and we’re so proud and excited to be playing a central and pivotal role. We’re proud to support jobs, not only in our own company, but the hundreds of jobs of employees in our partner restaurants, takeaways, supermarkets and marketplace venues.

Our latest tech update, is one which we believe can make a huge difference to local charities and is due for release in the third quarter of 2022.

The Hungry Monkey app will soon be giving customers the option to give a micro-donation at the end of their order to a selected local charity. Customers will be able to round up their order and donate at the touch of a button, even the smallest of amounts ; and we’re all very excited about the impact this could have on our local community and the charities.

Others have embraced the challenge and are blooming in the summer of 2022.

Did you know…? You can now get all of your online shopping essentials through delivery or click and collect on your Hungry Monkey app from a whole host of popular local venues including Hotel Chocolat, Eroski Supermarket, Gib Oil, Ramsons Select, TC Cigs and Mr. Moo. Use the app search filter ‘Marketplace’ to unlock a whole new world of on-demand online grocery and essential service shopping, at your fingertips, from your original and trusted independent delivery service provider since 2016.

OUR LOYALTY ROYALTY CLUB HOW TO GET INVOLVED! Loyalty is well and truly dead! It’s rewards we all want these days ; and there’s plenty of those when you join our club.

Simply tick the tick in the My Account> My Details section and your in for a sure fire ticket to exclusive deals, latest news and promo codes straight to your inbox.

Restaurants and food outlets are now needing to stay on top of their game to survive as competition heats up, and menu management, data analytics, POS integrations are all part of the services we provide to give restaurants and food service providers, the tools they need to succeed in a hectic and ever changing market.

Gibraltar’s hospitality industry can benefit from a tech-forward approach, with greater customer engagements and interactions, whilst giving that level of convenience desired from todays consumer.

Our Hungry Monkey software has recently teamed up with BSG on POS integrations within the hospitality industry, to help venues in all aspects of their business from stock control to data analytics and food delivery app managements. There’s also individual

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GIBRALTAR BUSINESS

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FEATURE

KPMG LAUNCHES COMPETITION TO FIND GIBRALTAR’S BEST TECHNOLOGY INNOVATOR

Gibraltar has for the first time joined KPMG’s competition to find the most innovative technology leader. The competition is hosted in 24 countries across KPMG’s network and this year for the first time Gibraltar will host its own local final. The winner in each local country will go forward to showcase their company at KPMG’s global Web Summit which is being held in Lisbon in November.

Stephanie Beavis, Managing Director of KPMG Gibraltar said, “Gibraltar’s technology sector is very strong and contributes to our ability to generate employment and introduce new products and services, both locally as well as internationally. This is a great opportunity for local companies and entrepreneurs to showcase how they are using new technology to create and drive forward business in their chosen sectors.

We want to recognise today’s leading tech innovators at a local level, as well as on a global scale.”

“At KPMG Private Enterprise we work with many inspiring and innovative clients to help them develop technologies which have an impact across the world.

Whether they are a pure technology company or a tech-enabled, tech-led or tech-driven business, we work in partnership with them to leverage their full potential.”

Further information can be found at: bit.ly/3wYzUEj.

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FEATURE

Professional Services Consultancy, Begbies Traynor Group, marked the rebrand of the CVR Global overseas operations with a reception for clients, contacts, and friends at Rendezvous in Queensway Quay earlier this month.

The event was attended by a broad crosssection of Gibraltar businesses and is the first in a series of overseas events scheduled to take place over the coming weeks.

The Gibraltar team is led by local Director, Joanne Wild, supported by Mark Fry, UK Head of Restructuring and Advisory, Partners Adrian Hyde and Paul Appleton, and local Administrator Gianni Chipolina.

Joanne Wild stated “We are thrilled to have now joined the Begbies Traynor Group brand and the event last week was an amazing opportunity to share this celebration with our contacts and local businesses. I am now looking forward to continue our Gibraltar expansion and build on our existing contact base, whilst also contributing to our international growth”.

Partner Adrian Hyde also stated “This event marks the start of our overseas rebranding receptions, scheduled to take place over the next few weeks. It is now almost 16 months since Begbies Traynor Group acquired CVR Global and began its international expansion and this event was a great way to celebrate joining the group brand. The Begbies Traynor brand brings with it a wide range of services

including insolvency, restructuring, forensic accounting, and regulatory and compliance review work, all of which are supported and provided through Gibraltar”.

ABOUT BEGBIES TRAYNOR GROUP Begbies Traynor Group is a leading professional services consultancy. Our expertise includes financial restructuring, advisory, resolving financial distress, as well as multi-jurisdictional fraud investigation and asset recovery.

We work alongside businesses, individuals, professional advisers, and financial institutions in the areas of restructuring and turnaround, corporate and personal insolvency, corporate finance, transaction services, forensic services, pensions advisory, capital management and property consultancy.

Begbies Traynor Group head office is in Manchester with a network of over 100 offices across the UK as well as offices in the British Virgin Islands, Jersey, Guernsey, Gibraltar, Isle of Man, and Cyprus. Unlike our competitors, our offshore offices are not franchised, and all partners work together within the same firm.

All our partners are professionally qualified as insolvency practitioners, solicitors, or chartered accountants.

Begbies Traynor Group is the founding member of BTG Global Advisory, an international business and financial advisory group. Being part of BTG Global Advisory allows us to access partner firms covering the major business centres around the world.

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PEOPLE ON THE MOVE

HASSANS Hassans is proud to announce the appointment of two new trainee lawyers to its training programme.

Brian Caetano is undertaking his first seat with the Corporate and Commercial team, working with Isaac Levy and Karl Ghio. Brian graduated from Swansea University with a degree in Philosophy, Politics and Economics and went on to complete a Masters in Political Science with a specialisation in EU policy. Brian then went on to do the GELLB course (Graduate Entry Law Isabella Lombard & Brian Caetano LLB) in City University of London followed by the BPC at the University of Law Bloomsbury, coupled with an LLM in pro-bono services, where he graduated with a distinction. Brian was called to the Bar of England and Wales in October 2021 by The Honourable Society of the Middle Temple.

Isabella Lombard is undertaking her first seat in the Financial Services Team, working under the guidance of Anthony Provasoli and Aaron Payas. Isabella graduated from Leeds Beckett University with a Joint Honours degree in Law with International Business (LLB), before completing the Bar Training Course at Cardiff University. Isabella was called to the Bar of England and Wales by the Honourable Society of the Middle Temple in November 2021.

The two trainees will work across various key sectors and practice areas to build experience and develop their skills before deciding which area of law they will specialise in at the end of the two-year programme.

TRUSTED NOVUS BANK Kaan Korhaliller, Corporate Relationship Manager, Trusted Novus Bank.

Kaan Korhaliller recently joined the expanding Corporate Team at Trusted Novus Bank (TNB). He brings a wealth of Real Estate Finance experience, having previously been employed in large banking institutions in the City of London for over 12 years.

Kaan joined TNB to support the corporate growth opportunities in the local market especially in the area of construction finance.

Kaan Korhaliller

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PEOPLE ON THE MOVE

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