CARACAS // Fear is relative in Caracas, the capital of the Bolivarian Republic of Venezuela.
I felt exceptionally safe there. But then as a member of an official foreign delegation under government auspices, I was afforded all the protection the state could muster.
Foreign ministry officials met us at the airport and hurried us through the entry process, before squat men with bulges in their jackets led us briskly, with one eye on the terminal crowds, to a waiting bus with drawn blinds and a police escort for the 45-minute journey into town.
Once behind the tight security of a five-star hotel, our party only emerged to be driven in a blacked-out bulletproof SUV, with two armed outriders ahead of us clearing the way to equally secure government buildings.
The squat men travelled behind in another car. I asked the leader of the security detail, Jose, if he was carrying a gun and he pulled his jacket back far enough to show me the handle of a pistol, and he gave a little grin that said “of course, this is Caracas”.
The only time I left the hotel to go anywhere other than a government event was a trip to the mall, all of 50 metres away, accompanied by Jose and his two comrades. I felt as safe as could be, if a little spooked by the attention.
But driving around the city you could see why Caracenos going about their everyday life, and (strictly not advised) lone backpackers, might be terrified out of their wits.
The shantytowns sprawling along a pleasant green valley look lawless and sinister; virtually all buildings, office or residential, were surrounded by strong steel fencing topped with razor wire; there were signs on restaurants and bars declaring the establishment to be a “gun-free zone” below a picture of a crossed-out handgun. Our minders told us why.
Muggings, assaults, kidnappings and murders had for long been rife throughout the city, but it was getting worse the further the oil price fell. Affluent-looking foreigners were especially vulnerable, they said.
Over drinks with a couple of Lebanese businessmen, I heard the alarming detail. Even though we were in the lobby of a secure and well-protected hotel, they – let’s call them Hussein and Abdullah – only felt comfortable with two armed guards on the next table, reinforced by three more outside in parked cars.
Both had been in Venezuela for more than a decade. Business had been good at first and they had built up a nice retail operation in malls and the airport. But for the past three years it had been deteriorating rapidly, and with it the security situation.
Hussein had spent six months as a prisoner of one of the crime gangs, picked up in the street and occasionally brutalised until a deal was stuck: his release was eventually secured with the payment of a US$400,000 ransom, talked down from the initial $2 milllion demand. Abdullah told me of the latest trend: “express kidnapping”. A businessman knows that his turn will inevitably come up to be snatched, so he arranges for a trusted friend to always have sufficient cash – about $40,000 was the going rate – to secure his release within hours, at most a day. Much better than a long period of incarceration that might, at the very least, damage his business.
Amazingly, both men said they would stick it out in the hope of an economic recovery. They felt that prospects for Venezuela were better than in the Middle East at the moment. I suppose it’s all relative in the end.
fkane@thenational.ae
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
Teaching your child to save
Pre-school (three - five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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Killing of Qassem Suleimani
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
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%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EAlmouneer%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Dr%20Noha%20Khater%20and%20Rania%20Kadry%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EEgypt%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E120%3Cbr%3E%3Cstrong%3EInvestment%3A%20%3C%2Fstrong%3EBootstrapped%2C%20with%20support%20from%20Insead%20and%20Egyptian%20government%2C%20seed%20round%20of%20%3Cbr%3E%243.6%20million%20led%20by%20Global%20Ventures%3Cbr%3E%3C%2Fp%3E%0A
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
The specs
Engine: 2.4-litre 4-cylinder
Transmission: CVT auto
Power: 181bhp
Torque: 244Nm
Price: Dh122,900