>>abirached: this week on world business >>: india has ambitious plans to overhaul the country's creaking infrastructure, but will they create a highway to prosperity or get bogged down in bureaucracy? >>: the major challenge is the land acquisition. the project should not even take off without 80 percentland in hand >>: the last part of our series on egypt - the obama effect. with oil prices on the rise again, why the country should expect a rush of money from the gulf . >>: i think it's going to keep growing and growing and growing. the gcc has excess liquidity. egypt has the market, has the labour

force and the critical mass. >>: and why record spot prices are creating a golden opportunity for some quick cash. >>: i sold a couple of chains, a bracelet, a ring and some earrings and i think it was about 575 pounds i got for it. >>abirached: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. over the next 3 years india is aiming to build 15,000 kilometres of new roads. the hope is that this project would free up transport and stimulate the economy. theexpected cost is high at 30 billion dollars;

but the to attract as much as 10 billion of this from foreign investors. >>reporter: traffic volume in india is growing at12 percent a year with the country's brisk economic growth, putting a huge strain on its road network. but road-building hasn't kept pace, leading to choked highways and potholed roads. >>: that's all set to change, according to india's new highways minister kamal nath. he wants a fivefoldincrease in the length of roads built each year. >>nath: we are looking at building 7,000 kilometres per year, starting from next year. because if you want to make a visible difference you have to have a quantum jump. that translates to 20 kilometres per day. it will be one of the biggest road-building programmes ever undertaken. at the moment we're doingabout 2 kilometres a day.

>>reporter: this is a huge task and the government department entrusted with this, the national highways authority, is already struggling to add the capacity required to meet the minister's ambitious target. >>singh: we're going to get there by stages - it takes about 3 years to construct a road. so if you're aimingat 20 kilometres a day, it means you've got project reports ready at 20 kilometres a day, it means you do land acquisition at the rate of 20 kilometres a day. so these are very formidable pre-construction targets as well. i think it will be possible to reach there over a period of time, but at themoment we're at a much lower level - we hope to do about 2,500 kilometres in the present year and we'll ramp up to this high level over a series of years. >>reporter: but big challenges lie ahead, like securing land for highways. the federal government usually approaches state governments to identify land and negotiates the price with rural owners. this is a complicated and time-consuming process.

>>singh: the main obstacle has been the cooperation of the state governments we're trying to overcome that. we've asked the states to set up around 155 special land acquisition units - some states we're setting up 5 units, some states we're setting up 15, depending on the number of land acquisitions we're planning over the next few years. >>reporter: and this is the real challenge for expanding on this scale in a big bureaucratic country like india.china with its record of aggressive land grabs can carry out road building far more swiftly than itever could be in the world's biggest democracy. >>kohli: the major challenge is the land acquisition. the project should not even take off without 80 percentland in hand. and that is what government is trying to do. in case there are projects are allotted day after day and the land available to you for development is only 20-30 percent then the delays are inevitable, the delays will happen, the challenges will be there, the private player will suffer losses.

>>reporter: meanwhile, minister nath is actively lobbying foreign investors for funds. he aims to bring in 10 billion dollars in the next 3 years, and believes that despite the problems of mass land purchase, india's highways sector will provide good returns. >>nath: foreign investors can come in many ways: it's in the construction period, that's one kind of risk; there's the post-construction people - it's through toll, you securitize toll. and the traffic on toll is easily accessible and i see there will be a 10-12 percent growth in traffic. so the numbers arevery appealing. >>reporter: the size of the pie is attracting big players, including indian conglomerate punj lloyd. the 1.4 billion dollar group operates in 46 countries, but here in india it may still tie up with foreign companies due to the scale of the highway projects on offer. >>punj: expertise is not what is required - its really capacity in terms of the soft side: the people, the engineers, the quantity surveyors,

the project managers, the construction managers - that is the piece we would like to partner with foreign companies depending on the size and scale of the project. >>reporter: this infrastructure push could add momentum to the indian economy in the ongoing slowdown, since poor infrastructure is estimated to take two percentage points off the country's gdp increase each year. >>nath: the whole landscape will change, our transaction costs will go down, movement will be there, values of land will go up. people will see the economic impact of this in many ways, in ways of greater efficiency and in transaction costs. >>reporter: the minister plans to connect all 50 cities in india that have a population of more than 1 million. with quicker and cheaper transport of goods, the hope is that this could drive the country into the 21st century. >>abirached: the growth of the gcc has been primarily based on the exploitation of its natural resources. and with the price of oil back to around 70 dollars a barrel

the money is again flowing into the region. but, as president obama called for in his cairo speech, there's a growing realization of the need to diversify the region's economic base: one way that's happening is through external investment - and, increasingly, eyes are turning to the most populous nation in the arab world - egypt. >>reporter: this time last year the delegates at the gcc - egypt investment conference were witnessing oil plummet from its record summer highs before bottoming out at just over $30 a barrel. the global economic crisis had just begun and some analysts were talking about a prolonged period of low oil prices. others, such as egypt's minister of investment, were more sanguine. >>mohieldin: i was predicting that the price of oil was not going to be on average lower than $50 a barrel and even with that very low price of $50 there is a surplus

of loanable and investable funds and opportunities. >>reporter: according to the minister even at a relatively low price of around $50 the gcc will still accumulatesome 5 trillion dollars by 2020. the drop in price did, however, reinforce the region's decision todiversify its economic base - both at home and abroad. a decision that has benefitted developments like the multibillion dollar gcc funded cairo festival city. >>el-mikawi: there is no, the opportunities of investing in the gulf now are limited, so investments are actuallymoving towards egypt - which makes this project accelerate. >>reporter: and that investment is important to egypt. the gcc now accounts for the country's largest percentageof fdi - up from 4.6% in 2005 to 25% in 2007. one reason is the wide range of investment opportunities.

>>nazif: one important i think feature of our economy is that it is diverse; you can work in oil and gas; youcan work in tourism; you can work in agriculture; in services, in banking; in it. >>reporter: abdulrahim hasan naqi is the secretary general of the gcc's chambers of commerce, >>naqi: we are now discovering new opportunities, especially in infrastructure in egypt. the second one for the agriculture and also we are trying to work with egypt for investing for the small and medium enterprises. >>reporter: another factor that attracts the gcc is egypt's domestic market of some eighty million people. and while it's true the majority of those still live in poverty there is an increasing middle class. markkhalife runs, among other franchises, the coffee chain caspar and gambini's. >>khalife: the spending power of the middle class is increasing ... so it's people

who won't come you know, maybe two or three or times a week but they'll come maybe once a week or twice a month whereas before, you know, you wouldn't be able to tap into that potential. >>reporter: egypt's location, as well as the suez canal, also play an important role. mohammed klaiby is senior vice president of the savola group - saudi arabia's largest food business. >>al klaiby: egypt has an excellent location. it has an access to the mediterranean sea where you can go to europe and it has an access to the red sea so you can go to africa. you can get to europe. you can go to the far east. >>reporter: there are already healthy trade links between the gcc and egypt - bilateral trade currently accountsfor 10 per cent of the county's total trade volumes. and, according to the country's minister of trade, new agreements are in the pipeline. >>rachid: we have already now approached the gcc to establish a customs union between egypt and the gcc- this is under consideration at the moment >>reporter: and while growth next year in most of the gulf is expected to be stagnant, the egyptian economy is still expected to grow at over 4.5%

>>o'sullivan: they are clearly going to be looking for markets like egypt because of the size of the market and because of the growth. >>reporter: the result is, according to egypt's finance minister, increasing interest from gcc investors. >>ghali: investors are coming back - they are beginning to poke around. we have seen some spending. so it is coming back. >>reporter: savola is just one example. >>klaiby: we are today putting a new investment of around 400 million dollars over the coming three years to expand our sugar industry and our full integration from the farming until the productivity for the market. >>reporter: the chairman of one of egypt's largest investment banks believes the relationship will only strengthen over time. >>saba: i think it's going to keep growing and growing and growing. the gcc has excess liquidity. egypt has the market, has the labour force and the critical mass. >>reporter: it's expected that the gulf will continue its strategy

of economic diversification and external investment. if that is the case then egypt should expect the gcc to play an increasingly significant role in its economy. >>abirached: still to come on world business... with gold prices at record highs, people are finding that unwanted jewelry is now easily converted to cash. >>: with a tipple to tempt even the worst wine snobs, slovenia winemakers are aiming to make a bigger splash on the world wine market. >>: and it might make nfl look soft, but the uk's rugby league has successfully embraced the us sport's franchise system >>: a license to thrill... and the rest in just a moment on world business...

>>abirached: every day around $60 billion worth of gold is traded in london on the professional market. but now spurred on by some of the highest spot prices in decades ordinary people are also cashing in. >>reporter: this may look like an ordinary gathering of women on a warm summer evening.... but it's not. >>costello: i'm hosting a gold party because i think everyone has a bit of gold around the house and i thought you know 'times are a little bit tough, there's a recession on and a lot of my friends might want to trade it in for some cash.' >>reporter: the high price of gold, which breached $1000 an ounce in february is still consistently hovering above $900 an ounce. that combined with hard economic times has put this precious

metal back in style. >>: this gold party has been organized by ounces to pounds, a uk business that sprang from a us company called glitter to green. >>pearson: we launched here in the uk in march, we're already opening a business in australia under the name dazzle to dollars and spain will be the next market so it's a rapidly expanding business. >>reporter: a company representative attends each party to test the gold brought by party-goers and, most importantly, to write the checks. >>: ounces to pounds is currently holding up to 15 parties a week all around the country but the majority take place in london and the wealthier counties surrounding the capitol. >>pearson: our predominant audience is probably 35 to 55 year-old women who wouldn't really want to go into a pawn shop so we do it in the privacy of their home, it's in a fun environment, it's a party environment and actually we pay prices which are probably 2 to 3 times higher than pawn shops as well. >>mitchell: you don't trust them as much as you would having something in your house where you know

they look like established women who know what they're talking about. >>reporter: the offers themselves are based on the daily fixed price of gold and the average party can generate as much as ú5000 in payouts, that's $8000. >>mitchell: i sold a couple of chains, a bracelet, a ring and some earrings and i think it was about 575 i got for it. >>reporter: and while some sell their gold jewelry, others, like ian dunbar, are trading gold bars. but this wasn't always an easy thing to do. in 2000 ian inherited his share of the family estate anddecided to go with gold. >>dunbar: what happened was i asked the bank manager about investing in gold and he just scoffed. and as i sayi was unhappy with the way things were going on the markets and so on,

everyone was just getting carried away. >>reporter: ian eventually invested in gold mining shares but what he really wanted was to actually own the goldhimself and that's when bullion vault appeared. >>ash: bullion vault is an online trading service where you can buy, own and sell portions of good deliverygold bars. the gold belongs to you outright, you set your own price online. we've got 14,000 activeclients who have funded their accounts and are buying and selling gold with us and they're spread all over the world, about 83 different countries and they now own about 18 tons of gold between them. >>reporter: since 2006 bullion vault has given ordinary people the chance to trade in the professional gold market, a place previously frequented only by institutional investors and the super-wealthy. >>ash: it's a market which private investors haven't been able to access before, you know, you need to havearound $10 million us dollars really to start have a trading account. >>reporter:

and with the price of gold at its highest in decades, business at bullion vault increased more than 5 fold in 2008 and so far has been very strong in 2009. >>: as for ian dunbar, the recession is only something he hears about. >>dunbar: the recession hasn't worried me at all. i've been recession proof. >>abirached: with tiny vineyards and handpicked grapes slovenia's wine, like the country itself, is hardly known outside of central europe. but slovenia's winemakers are determined to make a mark on the global market. >>reporter: slovenia - a small but flourishing central european country of 2 million people, and one of the bestkept secrets in wine. the boutique winery produces around 60,000 bottles a year and they now successfully export around 45%, mostly to the former yugoslavian

states but also to northern europe. >>scurek: at a wine fair the importer fell in love with our wine and he began to work with us. >>reporter: but convincing other markets to fall in love with slovenian wine will be a tough sell; not only doesthe country lack a reputation as one of the world's great producers but the costs of small scale production are against them. >>learned: because they're small boutique wines, prices are higher, so a lot of people don't want to spend, they want three dollar or three pound plonk, so you know it has been a challenge. >>reporter: but it seems the quality is there and some of the smaller winemakers from the country have received international acclaim. >>kobal: this wine just won the gold medal at brussels. it's nice, crisp, green, you know, it has all the characteristics for good sauvignon blanc.

and a very lifted aroma, you know, expressed slovenian. >>reporter: indeed over the past couple of years slovenian wines have won prizes both in the us and europe. to try and really put the country on the world wine map the wine association of slovenia joined their more established colleagues at the london international wine fair to showcase their produce. >>brejc: we can't do it with only the dozen of famous, haut de gamme, you know, producers, top wines. of course they do a lot good about the image of our wines and quality. but they can't pass the idea that weare a wine destination. so that we have to do with the bigger players. >>reporter: when slovenia joined the eu in 2004 it meant access to the european markets, but also competition from the rest of europe and the new world wines. the domestic drinkers are very

loyal to their slovenian wines, so the biggest challenge has been export. some cellars have tackled this by inviting international wine experts to advice them on how to market. >>brejc: and with the introduction of flying winemakers, who actually helped us to adapt the style, not the quality, i'm talking about style, of slovenian, especially whites, we immediately got a new let's sayrecognition. >>reporter: slovenia may have a way to go to become a serious player in the world of wine, but it's worth remembering that australian wine was once looked down on by wine snobs, today the country makes some stunning wines and is the world's 4 largest exporter. >>abirached: formed in 1895, after it broke away from rugby union in a row over player payments...the uk's rugby league is a sport that's fiercely proud

of its northern roots, and its spirit of innovation. in 1995, for example, its top league shifted from a winter to summer season and now it's embraced an american style franchise system, designed to give clubs financial stability. but holding a license isn't all plain sailing... >>reporter: the north of england. come up here and you'll see beautiful rural vistas and gritty urban landscapes...the odd horse on a football pitch...and at a ground in salford called the willows, you'll also see a quintessentially northern sport called rugby league... >>: the big hits! ?the big hits. and the fights! the fights. >>: it's the toughest game going. that's why you love it? absolutely. >>reporter:

although calling league tough, one feels, is something of an understatement.... >>alker: every collision's like being in a car crash i suppose. and it's you know quite physically demanding,but also it's quite mentally demanding. >>richardson: last weekend we had a young guy...and within the first ten minutes broke his jaw....and the coach said...well it's all right, he's only a winger. just let him stay on a little bit longer. so he did. and he performed all game. he's got a broken jaw unfortunately. >>reporter: but as well as being a tough and incredibly skilful sport...it's an innovative one. which is why last year, the game's top league introduced an american style franchise system, and scrapped any promotion and relegation... >>kimberley: moving to a licence system where we're endeavouring to give clubs some security, of knowing that they're in the top league for a period of time which is three years. >>reporter:

19 clubs applied for the 3 year licenses, based on criteria such as financial stability, playing strength and quality of facilities. 14 were successful. >>tarry: it does give a team a period of time in which to try and establish itself and you know, set some goals and move forward in certain areas, in certain key areas on the business side to be able to finance themselves. >>reporter: one key goal of the licensing system is to encourage local youth development...less of a priority inthe past.... >>richardson: we had one english player in our team. now we've sixteen. >>reporter: attendances for the superleague, which now average around 10,000 have risen every season since 2001...but critics of the franchise system say no threat of relegation will produce more meaningless matches and dull competition....

>>kimberley: certainly from the one year we've had so far, we didn't see a drop off in attendances at clubs who were involved in games that maybe you could say weren't counting for anything at the bottom of the table. >>tarry: it's not about you know a free pass or resting on your laurels. >>kimberley: we've had the fewest points difference that we've ever had in terms of games. >>reporter: but all is not well in franchise-land...because recently, the rfl sent out warning letters to five clubs, including wakefield and salford, that have yet to even start construction on promised stadium developments... >>kimberley: we're very keen to remind clubs what they promised us during the last submission process. >>richardson: i guess it's a nudge in the ribs to us to say what are you doing. >>tarry: these things are very very complicated. we're rugby clubs. we're not developers. >>reporter: the clubs are confident the recession has simply slowed things down, although others aren't so sure. >>: i don't think we'll get a stadium. no? no. why not? just don't think it's happening. it's been happening for 8 years. don't think it's going to happen.

>>tarry: there's a lot of things going in the background. its like a duck floating on a pond. it looks like there's nothing happening but underneath we're peddling and we're peddling fast. >>reporter: with the willows over 100 years old, it's obvious salford does need a new home...although it must besaid that this place has a certain shabby charm.....along with that, there's a real sense of community here. not to mention the smallest changing rooms i've ever seen... >>jong: as for the bathroom? well to be perfectly frank... after i'd set foot in here once, i don't think i'd ever want to come back. but isn't that what home advantage is all about...? >>paul: i remember when i used to come and play against salford as an opposition member and i used to think to myself...oh not another day you know at the willows. >>reporter: but for superleague,

the willows represents the past...and the game from the north is determined to improve both the quality, and reach of its product... >>kimberley: we've got a superleague team in the south wales, we've got a superleague team in the south of france, so definitely we have an expansionist philosophy... >>reporter: because when its 14 franchise licenses are renewed in 2012...this sport wants to make sure its clubshave taken the steps needed to move forward...no matter how tough that may be...... >>abirached: that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.