Business Chief - MENA - November 2023 by Business Chief Europe

November 2023 | businesschief.ae

MIDDLE EAST & AFRICA

EXECUTIVE INTERVIEWS Visionary CEOs in South Africa

Aloki Batra

FIVE HOSPITALITY

Khaled Bin Braik

Why now is the time to invest in pre-loved watches How to attract and retain Emirati talent

PwC MIDDLE EAST

Shargiil Bashir

FIRST ABU DHABI BANK

Delivering MENA’s digital ecosystem

SAUDI

WELCOME TO THE AGE OF

As EY celebrates 100 years in the MENA region, we talk transformation and trailblazing female leadership with Saudi Arabia’s Partner and Law Leader Reema Aref

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The Business Chief Team EDITOR-IN-CHIEF

SCOTT BIRCH EDITORS

KATE BIRCH TOM CHAPMAN CHEIF DESIGN OFFICER

MATT JOHNSON

HEAD OF DESIGN

ANDY WOOLLACOTT LEAD DESIGNER

SOPHIE-ANN PINNELL FEATURE DESIGNERS

SOPHIE-ANN PINNELL SAM HUBBARD MIMI GUNN REBEKAH BIRLESON JULIA WAINWRIGHT

4 November 2023

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DIGITAL VIDEO PRODUCERS

PROJECT DIRECTORS

KIERAN WAITE

SENIOR VIDEOGRAPHER

ERNEST DE NEVE THOMAS EASTERFORD DREW HARDMAN SALLY MOUSTAFA

THOMAS LIVERMORE RYAN HALL TOM VENTURO STUART IRVING JAMES BERRY

MARKETING MANAGER

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GLEN WHITE

FOREWORD

The application of AI could provide the key, if not the silver bullet, to solving this evolving climate crisis

THE AI OPPORTUNITY When it comes to the future of business, there are really only two stories in town – sustainability and artificial intelligence. Interestingly, how those two stories overlap and interact with each other could be the most meaningful conversation of our times. Sustainability will of course be front of mind when world leaders descend on the UAE for COP28 this month, but the application of AI could provide the key, if not the silver bullet, to solving this evolving climate crisis. It would be foolish to put too much emphasis on technology, but AI does offer a glimmer of hope, especially if coupled with visionary leadership and sheer will to make sustainability not just a buzzword but a byword for smart business.

SCOTT BIRCH BUSINESS CHIEF MAGAZINE IS PUBLISHED BY

Chief Content Officer, BizClik scott.birch@bizclikmedia.com

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CONTENTS

UPFRONT

08 BIG PICTURE

Lift-off for UAE space sector

12 MONTH IN REVIEW Business Chief stories

14 P EOPLE MOVES

Executive moves in the region

18 THE BUSINESS CHIEF INTERVIEW

Reema Aref, EY Law Leader and Partner for Saudi Arabia

24 LIFETIME OF ACHIEVEMENT

Dubai Duty Free legend Colm McLoughlin

14 46 TOP 10

visionary CEOs in South Africa 6

November 2023

NOVEMBER 2023 FEATURES 30 RADISSON HOTEL GROUP Promoting sustainable travel

64 LEADERSHIP INTERVIEW

Doing things differently

74 LEADERSHIP DEVELOPMENT

EMIRATISATION Cultivating the UAE’s future leaders

86 SUSTAINABILITY

Why every CEO needs to wake up to the green finance dream

96 TECHNOLOGY

Public-private partnerships delivering the digital ecosystem

116

108 EXCLUSIVE INTERVIEW

New chapter for India's tech turnaround CEO

116 PEOPLE&PLANET Stepping beyond business

126 IXAFRICA

Putting Kenya on the map as a data centre leader

142 LIFESTYLE

126 142

Time to invest in pre-owned watches

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BIG PICTURE

Lift-off for UAE space sector United Arab Emirates

Since the recent successful conclusion of the longest Arab space mission in history by UAE astronaut Sultan Al-Neyadi (pictured), the country has consolidated its global leadership in the sector, ranking 10th globally in spacewalking missions outside. the ISS. This sets the stage for a sector that is seeing rapid growth in the UAE, with space sector spending surging 6.61% in 2021, while spending on R&D was up 14.8%, compared to the previous year, according to the Space Economic Survey 2023. Across the ten sub-sectors of the industry, the UAE’s space-related investments have surpassed US$6 billion, with investment in advanced technology for the space economy resulting in commercial spending worth US$2.9 billion by the end of 2020. Currently, 57 companies and space entities are operating here, while public and private sector support for the UAE space programme has exceeded US$5.4 billion.

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Credit: Mohammed Bin Rashid Space Centre

THE TOP 100 COMPANIES IN SUSTAINABILITY Discover the companies leading the way, setting the pace and inspiring global business change.

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MONTH IN REVIE

In case you missed them, here’s our pick of Business Chief stories from October across the Middle East and Africa

Saudia enters new era with rebrand With ambitious plans to increase its fleet from 140 to 318 aircraft and destinations from 100 to 175 by 2030, Saudi’s flagship carrier Saudia has unveiled a rebrand strategy. As well as bringing back its iconic three-striped 1970s design across its logo and livery, the airline has introduced a genAI virtual assistant signifying a major focus on digital.

PwC reveal Qatar banking trends

Qatar is strategically positioning itself as a leading fintech hub in the Middle East and a pioneer in digital transformation and sustainability within the financial services sector, according to PwC Middle East’s Qatar Banking Sector report – which identifies seven key factors impacting the sector, from new tech to new players.

EY celebrates 100 years in MENA region EY first set up shop in the MENA region in 1923 with an office in Cairo and has since expanded operations to 15 countries with over 8,000 professionals across 26 offices. Along with celebrating 100 years in the region, EY has hit record headcount and revenue across the region. 12 November 2023

MONTH IN REVIEW

The apps tackling workplace mental health

Acknowledging World Mental Health Day on October 10, we looked into the wave of new mental health apps that are tackling the unique challenges of workforce wellbeing in the Middle East, including dealing with stigma. This comes as employee mental health across the region has hit an all-time low in recent years.

GITEX – biggest show ever The world’s biggest technology event took to the Dubai stage for the 43rd time last month, pulling in more than 180,000 tech executives, 6,000 exhibitors, 1,800 startups, and 250 government entities. The Dubai event, which took up 40% more exhibition space than last year, focused on AI with the largest showcase of AI solutions from more than 1,000 AI-infused companies.

South Africa’s biggest bank names first female CEO When Mary takes the helm of South Africa’s largest bank in April 2024, she will become the banking group’s first female CEO and second black leader. Mary began her career at PwC where she became one of the firm’s youngest partners, aged 27 – and has held CFO roles at Momentum Metropolitan and Mineral Services Group.

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PEOPLE MOVES Credit: TEDxYouth@OIS

MTN Group, Core42, flyadeal, Anglo American Platinum among companies in the region with recently appointed executives

SAUDI'S 2030 VISION AIMS TO LEVERAGE ITS STRATEGIC LOCATION

Marina Madale

Talal M. Al Kaissi

JOB FROM: GM SUSTAINABILITY AND SHARED VALUE, MTN GROUP JOB TO: GROUP EXECUTIVE OF SUSTAINABILITY & SHARED VALUE, MTN GROUP

JOB FROM: CEO, G42 CLOUD JOB TO: CHIEF PRODUCT & GLOBAL PARTNERSHIPS OFFICER, CORE42

Since joining Africa’s largest mobile network operator, Marina has been pivotal in aligning MTN’s commitments with global best practices, spearheading the formulation of the Group’s SBTs for net-zero emissions, launching its inaugural Digital Human Rights Transparency report, and leading the Group’s pioneering panAfrican MTN Skills Academy.

Sanjiv Kapoor JOB FROM: CEO-DESIGNATE, JET AIRWAYS JOB TO: CEO, FLYADEAL

Aviation veteran Sanjiv Kapoor will steer flyadeal, Saudi’s low-cost airline, to greater heights. Recently serving as adviser to Saudia’s Director General, Kapoor began his aviation career at Northwest Airlines and has held executive roles at SpiceJet, GMG Airlines, Vistara and Jet Airways – where he was instrumental in delivering a groundbreaking business plan to spearhead the revival of the Indian airline.

Talal’s move within G42 comes as the Abu Dhabi-based technology holding company synchronises three of its companies to create Core42, an enterprise AI delivery force with a global footprint. Talal, who most recently led G42 Cloud to regional success, will work with a world-class team to spearhead Core42’s product strategy and foster its global partnerships.

Craig Miller JOB FROM: FINANCE DIRECTOR, ANGLO AMERICAN PLATINUM JOB TO: CEO, ANGLO AMERICAN PLATINUM

Former finance director Craig Miller has led strategy development and execution at the mining giant since 2019, driving successful cost and value optimisation across the business. With 23 years of industry experience, Craig is a seasoned senior executive who has worked in South Africa, Brazil, and the UK, with expertise spanning Anglo American’s various businesses. businesschief.ae

Knowledge Partners

THE TOP 100 COMPANIES IN TECHNOLOGY Discover the companies leading the way, setting the pace and inspiring global business change.

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THE BUSINESS CHIEF INTERVIEW

REEM AREF EY Law Leader and Partner for Saudi Arabia, Reema Aref talks transformation, trailblazing and how new laws in the corporate sector are reshaping business

WRITTEN BY: KATE BIRCH 18 November 2023

MA businesschief.com businesschief.ae

19 19

THE BUSINESS CHIEF INTERVIEW

here is no doubting the transformation sweeping Saudi Arabia. Powered by Vision 2030, the Kingdom is undergoing massive change at every level. It is a transformation impacting not only the economy as it ushers in a new era of diversification and growth – attracting foreign investment, and creating opportunities across multiple sectors – but culture and society too. And this is especially true for women. “Socially and culturally, Vision 2030 has been instrumental in promoting gender equality and empowering women in the workplace,” says Reema Aref, one of the Kingdom’s first female lawyers and a Partner and Law Leader at EY Saudi Arabia. “Reforms such as allowing women to drive, travel without a male guardian’s permission, and participate in various sectors have been particularly significant. Moreover, the implementation of the anti-harassment law has provided essential protection for women in the workplace, fostering a safer and more inclusive environment.” For Reema – who specialises in corporate and commercial law including Tax law and whose role is to provide innovative and impactful legal solutions to business clients – it is an especially exciting time. The country’s commitment to gender diversity and inclusion has created a fertile ground for women to thrive in both the legal and business profession, and as more women break barriers and take

20 November 2023

on leadership roles, there is what Reema describes as a “palpable sense of positive change and progress in the air”. “It fills me with hope and inspiration to witness the tremendous possibilities that lie ahead,” she tells Business Chief. To understand just how impactful transformation has been, you need to look back 10 years when there were just 10 licensed female lawyers in the Kingdom. A decade on, and there are 1,000, with women now representing 12% of Saudi licensed lawyers. A trained lawyer with more than a decade of legal experience, Reema is part of the movement that has inspired such change; and as the first EY Law Partner & Leader in Saudi, she has been at the forefront of driving positive change for women both in the legal field and in leadership more generally. “Pursuing a career in law was not an easy choice, especially as a woman where opportunities for female lawyers were scarce at that time, but I was determined to make a difference… to make a positive impact on society and to advocate for fairness and equality.” In the years since, the former legal corporate investigator for Saudi Aramco has witnessed the transformation of the workplace, where more women are breaking barriers and stepping into leadership roles with confidence and competence. “Women are now leading important initiatives, making critical decisions, and

E Y M E N A CE L E BR A TE S 10 0 YEARS EY has been operating in the Middle East and North Africa region since 1923 and over the past 100 years, has grown to more than 8,000 professionals united across 26 offices and 15 countries – all sharing the same values and unwavering

commitment to quality. EY global revenue increased by 14% to nearly US$50 billion, with the EMEIA region – inclusive of MENA, Europe, India and Africa – rising by US$1.2 billion to US$18.3 billion, marking 37% of the group’s total.

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21 21

IT FILLS ME WITH H O P E A N D I N S P I R AT I O N TO WITNESS THE T R E M E N D OUS POSSIBILITIES T H AT L I E A H E A D contributing their unique perspectives to shape the legal and business landscape. “This shift has enriched the professions, and I am excited to see more women making their mark in various sectors.” Empowering women and promoting positive change in the region is a cause very close to Reema’s heart. And it’s one that makes up a large part of her role as a Partner at EY – where she serves as a mentor, role model, leader, and a catalyst

22 November 2023

for change and actively supports initiatives that encourage gender diversity and women’s leadership. “My goal is to create an inclusive and empowering environment where everyone can reach their full potential. I strive to foster a culture of continuous learning and growth, where our team members are inspired to push boundaries and excel in their careers.” Reema has been leading a twelve-strong team of diverse professional lawyers since January 2023, when EY’s MENA practice – which has been operating in the Middle East for 100 years growing to 8,000 people across 26

THE BUSINESS CHIEF INTERVIEW

S AUDI ’S NEW CO MPANI ES LAW

offices and 15 countries – expanded its regional law offering with a Saudi legal practice. The setting up of a dedicated practice just as the Kingdom’s new corporate law kicked in is no coincidence – with demand for expertise in navigating the new business laws especially high “EY Law provides companies with a one-stop-shop to help them anticipate and navigate the increasingly complex legal environments of both the local and global economies.” Reema explains how businesses in Saudi have both local and global legislation to consider when organising each aspect of their operation model – everything from HR with labour and employment law to digital law to ensure compliance in an everchanging technology landscape. And the introduction of new laws in the corporate sector has brought about “substantial changes in how businesses operate,” says Reema – with the new Company Law and Procurement Law especially significant. The recently enacted business laws are expected to play a big role in encouraging foreign investment and boosting the private sector – which is fundamental to the Kingdom’s long-term vision.

Implemented in January 2023 to replace the Companies Law of 2015 and the Professional Companies law of 2019, the New Companies law introduces significant changes to modernise the Saudi corporate law framework – and is designed to enhance the ease and flexibility of operating in KSA for existing businesses, while also attracting further foreign investment into the market.

READ THE FULL STORY businesschief.com

LIFETIME OF ACHIEVEMENT

Colm McLoughlin The 80-year-old CEO who put Dubai on the global aviation map Driving one of the world’s largest duty-free operators for the last 40 years, Dubai Duty Free octogenarian Colm McLoughlin is aiming for a record-breaking year WRITTEN BY: KATE BIRCH

hen it comes to a lifetime of achievement, Colm McLoughlin is up there with the global greats. At 80 years old, and with more than half a century of industry experience under his belt, the Dubai Duty Free Executive Vice-Chairman and CEO remains at the sharp end of leadership – rubbing shoulders with the likes of 91-year-old Warren Buffet, Berkshire Hathaway’s chief executive for 58 years. 24 November 2023

Regarded as something of a pioneer – having put Dubai on the global aviation map by launching Dubai Duty Free (DDF) in 1983 – Colm is the engine behind DDF’s extraordinary growth, from US$20 million in 1984 to US$2 billion 25 years later (2019). And with better-than-expected turnover of US$1.74 billion in 2022, and sales likely to surpass 2019’s record by the end of 2023, the Dubai-based octogenarian is unlikely to be hanging up his corporate boots anytime soon.

I T I S NO T M E . I T I S NO T C OL M M C L O U G H L I N. I T I S T H E G R E AT D R E A M T E A M W E H AV E AT D D F T H AT H A S TA K E N D U B A I T O AN ALL-NEW LEVEL businesschief.com businesschief.com businesschief.ae

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Video:

Colm McLoughlin, 40 years at Dubai Duty Free

Ireland – the formative years Colm’s duty-free journey began in Ireland in 1969, at Shannon Duty Free, the birthplace of the industry – where, in the seventies, Shannon Airport served as a major gateway and refuelling stop between Europe and the US. Rising in the travel retail ranks to Shannon Duty Free General Manager, the Irish businessman was headhunted in 1983 as part of a 10-member team by the Dubai Government to launch a world-class dutyfree operation. Arriving in Dubai in July 1983, a day before his 40th birthday, Colm and his colleagues got straight to work, and within six months had DDF up-and-running – taking US$44,000 in sales on the very first day, and US$20 million in the first full year.

LIKE F A T HE R , L IK E SON Leadership genes run in the McLoughlin family, with Colm’s own son Niall, 55, serving as a Senior Vice President in one of the UAE’s leading companies, property developer DAMAC 26 November 2023

Asked to stay on as General Manager, what began as a six-month contract for Colm has since turned into an extraordinary 40-year journey – one that has delivered remarkable success for Colm, for Dubai Duty Free, and for the city of Dubai. The rise of Dubai Duty Free As well as setting the regional benchmark for airport retailing, under Colm’s leadership, DDF has landed numerous industry firsts, and secured in-excess of 750 awards – bagging the Airport Duty Operator of the Year Award within its first two years of operation, and more recently landing the Frontier Award for ‘Airport Retailer of the Year’ for a record tenth time. The multi-billion-dollar business has continued to rack up record sales too. From US$32 million in 1986, turnover climbed to US$95m in 1990 – breaking its own revenue records multiple times during the nineties – before rising to US$380m in 2003. By 2011, the business had retained its status as the world’s largest duty-free three times in a row – a record that held until the end of the decade.

LIFETIME OF ACHIEVEMENT

The number of years ago that Colm arrived in Dubai to set up Dubai Duty Free

“In 2019, Dubai Duty Free was the single largest duty-free operation in the whole world. We had business of US$2 billion that year, employed 6,000 people, and were being copied all over the world,” Colm said in an interview. And while sales have not yet returned to pre-pandemic highs, “the target is to take Dubai Duty Free back and surpass 2019, and that is happening so far,” Colm announced during May’s Arabian Travel Market. Middle East’s biggest travel retailer In true visionary leadership style, Colm has continued to make major investments – investing in the expansion of the retail offer in Dubai International Airport and at Al Maktoum International Airport, with luxury boutiques rolled out even during the dark days of the pandemic – and in the latest technologies. DDF launched its online offer in 2014, and has since established a 360-marketing approach, automated 95% of its distribution centre in Ramoul – and in an industry first, introduced digital currencies as payment. Under Colm’s leadership, DDF has expanded beyond its retail operation and into leisure with several hotels, F&B, and the Dubai Duty Free Tennis Stadium, as well as a series of high-level sporting events like DDF Tennis Championships and DDF Irish Derby. Attention-grabbing promotions have also been part of DDF’s marketing mix, and a huge part of the company’s success, with

The number of years Colm McLoughlin has been serving the duty-free industry

US$2bn

The record level of turnover reached by DDF in 2019, with a target to exceed this by the end of 2023

Millennium Millionaire counting a good many Dubaians among its millionaire prize winners since the 90s. “Retail-tainment has been a conscious decision and is part and parcel of our marketing policy”, Colm says, adding that DDF budgets 2.5% of its topline income on promotion and marketing. “We judiciously spend on marketing and that’s the secret behind the uptick in our sales per head YoY.” And on the sustainability front, Colm has long recognised the need for commitment, with DDF holding ISO 14001 certification since 1999, and prolific in its rollout and promotion of environmental projects. Among these, an ecosystem restoration journey, which calls on the organisation to plant 10,000 trees in 10 years; and a carpooling system, with 55% of employees on board. READ THE FULL STORY businesschief.ae

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RADISSON HOTEL GROUP

BLE TRAVEL

WITH RADISSON HOTEL GROUP WRITTEN BY: LUCY BUCHHOLZ PRODUCED BY: GLEN WHITE

Radisson Blu Waterfront Hotel, Stockholm

RADISSON HOTEL GROUP

Inge Huijbrechts, Global SVP Sustainability, Security & Corporate Communications at Radisson Hotel Group, discusses the business’s sustainability journey

fter spending more than 12 years at Radisson Hotel Group, Inge Huijbrechts, Global Senior Vice President of Sustainability, Security and Corporate Communications, has witnessed first-hand how the company has developed into a business that is pioneering sustainability in the hospitality industry. Now in 95 countries, Radisson Hotel Group (RHG) is a fast-growing hotel company, with over 1,200 hotels in operation and development. The group is also home to ten amazing brands that span economy stays, all the way up to luxury lifestyle options, as well as hotels ranging from those with 50 rooms to others that have thousands. With even more growth plans for the future, RHG has set out a defined five-year plan with 29 initiatives. “The group has a very clear direction of where we are going in the future,” Huijbrechts says. “As a group, we’re focused on our continued expansion, while ensuring that we’re always improving our guest experience and exceeding their expectations. It’s also important for us to be an employer of choice as we have a lot of exciting roles to fill in the future.”

32 November 2023

Inge Huijbrechts, Global SVP Sustainability, Security & Corporate Communications at Radisson Hotel Group

RADISSON HOTEL GROUP

Radisson Blu Iveria Hotel, Tbilisi City Centre

“ The Hotel Sustainability Basics programme is a great way of getting all the hotels on the same page to start their sustainability journey” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP

34 November 2023

Although RHG has set a number of targets to boost its own sustainability journey, the group has also made a number of strategic partnerships to ensure it’s helping the industry as a whole progress. “We are part of some key associations, such as the Sustainable Hospitality Alliance, the World Travel and Tourism Council (WTTC), and the Energy and Environment Alliance to ensure we’re playing our part in helping the hospitality sector become more sustainable,” Huijbrechts says. “Each organisation has its own strengths to occupy a bigger ecosystem of change. As

Founded in

1960 RHG wants consistency in sustainability, the business ensures it pulls together resources – even from its competitors – to make tools available for the industry and to drive a more sustainable, equitable future.” Think People, Think Community and Think Planet With Scandinavian roots, sustainability and responsible business have been at the top of RHG’s agenda for a long time, centred around three main pillars: Think People, Think Community and Think Planet.

Think People ensures the group is looking after and taking care of people in its hotels and supply chain, Think Community works to safeguard those in the community including individuals in underprivileged groups, and the Think Planet pillar focuses on minimising the group’s footprint, while forging strong relationships with suppliers. “Our work with the community focuses on ensuring that our hotels are engaged in the community,” Huijbrechts says. “It’s not just a matter of making donations, but it’s also a matter of making sure that businesschief.ae

RADISSON HOTEL GROUP

INGE HUIJBRECHTS TITLE: GLOBAL SENIOR VICE PRESIDENT SUSTAINABILITY COMPANY: RADISSON HOTEL GROUP INDUSTRY: HOSPITALITY LOCATION: BRUSSELS, BELGIUM Inge Huijbrechts is Global Senior Vice President Sustainability, Security and Corporate Communications for Radisson Hotel Group - developing the Sustainability and Safety and Security programs in the Group’s 1,200+ hotels in operations and development in 95+ countries. Together with her team, she lays out the strategy for Responsible Business from build to operations and keeps employees globally engaged in everyday Responsible Business actions. In April 2022, she was one of the key leaders involved in the definition and launch of the Hotel Sustainability Basics, an initiative to set a common, clear and transparent definition of hotel sustainability to drive responsible travel & tourism.

“ We have defined our ‘Build Planet’ guidelines, which focus on the highest standards of sustainability available” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP

through the hotel business itself, we are supporting local communities through employability opportunities.” “We work in many countries to create employability opportunities, either for jobs directly in our hotel in partnership with our hotels or other hotels in the destination, to encourage more people to continue both their personal and professional development. Sometimes, when underprivileged groups go through an employability programme, they’re able to get a job straight away, but other times, they realise they can pursue a hospitality management course, for example, and start higher up the ranks.” However, the main focus is the group’s net-zero transformation. In 2022, RHG pledged to become net zero by 2050 and has since published approved sciencebased targets. Huijbrechts explains that these initiatives put RHG among the biggest

companies in the world with concrete net-zero targets. Additionally, since the COVID-19 pandemic, RHG has pledged to reduce its absolute carbon emissions by 46% – almost cutting them in half. Huijbrechts explains that RHG is taking a number of steps towards reaching its net zero targets, including prioritising renewable energy and electricity. The business also operates as an ‘asset light’ company, which means the group doesn’t own any of the buildings that it operates in. What’s more, to improve its supply chain, the business began work with the sustainable ratings company, EcoVadis to acquire a rating. Initially, RHG was certified with a silver level and is now close to obtaining gold. This tool enables RHG’s procurement teams to focus more on responsible sourcing while checking that its regional and main suppliers meet the EcoVadis evaluation.

Promoting sustainable travel with Radisson Hotel Group WATCH NOW

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RADISSON HOTEL GROUP

46%

Since the COVID-19 pandemic, RHG has pledged to reduce its absolute carbon emissions by 46%

Stakeholder trust with Build Planet guidelines As RHG doesn’t own any of its hotels, the companies that do are among a key group of stakeholders for the business, and approximately one-third of RHG is a growing franchise. “With external parties, we focus on renewable energy, 40 November 2023

green operations and green buildings,” Huijbrechts says. “Our messaging towards owners is specifically about the net zero transformation and how they can green the buildings with our support. “We have defined our ‘Build Planet’ guidelines which focus on the highest standards of sustainability available to bring

Radisson Hotel Suzhou (China)

buildings up to the standards of BREAM, depending on where they are in the world. Hotel owners can then choose one of these certifications directly, to ensure any asset they have in their portfolio will be BREAM certified, for example.” Hotels that are unsure of how to navigate this can use the Build Planet guidelines as

“ With external parties, we focus on renewable energy, green operations and green buildings” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP businesschief.ae

RADISSON HOTEL GROUP

a step-by-step reference guide on how to achieve these standards. Owners are also supported by RHG with training options. RHG’s other key stakeholder group is its employees. “We have a very active network of employees engaged in sustainability,” Huijbrechts says. “First of all, we have two key training platforms available to everyone – one is leading responsible business and the other is living responsible business. These are both part of a new hire orientation as well as a repetitive training, meaning all employees are aware of sustainability targets and are engaged in different campaigns.” Last but not least, Huijbrechts discusses the customers, as stakeholders. “Year on year, surveys highlight that the demand for sustainable travel is increasing,” she says. “However, it’s also highlighted that customers don’t necessarily know what

it means for a hotel to be sustainable, and how to recognise them.” To counter this issue, RHG launched the ‘Hotel Sustainability Basics’, in 2022, together with WTTC and the Sustainable Hospitality Alliance. The Hotel Sustainability Basics was formed by a number of different parties agreeing to a set of twelve criteria that a hotel needs to fulfil in order to market itself as sustainable. The programme marks the 42 November 2023

Radisson RED Aarhus, Denmark

starting point of a hotel’s sustainability journey and is linked to a verification programme to eliminate any potential greenwashing. “The Hotel Sustainability Basics programme is a great way of getting all the hotels on the same page to start their sustainability journey,” Huijbrechts explains. “We also communicate to our guests about this, so when they see the logo, they’ll know that they’re staying at a hotel they can trust is sustainable.”

“ The group has a very clear direction of where we are going in the future” INGE HUIJBRECHTS

GLOBAL SVP SUSTAINABILITY, RADISSON HOTEL GROUP businesschief.ae

RADISSON HOTEL GROUP

70K+

Number of employees

Breaking ground in the DEI space Although hospitality is a diverse industry by nature, RHG has still made it a focal point to prioritise DEI initiatives. To do so, the group promotes local talent and encourages more women to take senior leadership positions. The group has pledged to reach a 50/50 gender split in senior leaders by 2050. “We need to show women that we do support them by providing them with 44 November 2023

the right encouragement, mentors and educational tools, but we also need to build their confidence in knowing that they can have a healthy work-life balance,” Huijbrechts remarks. In doing so, Huijbrechts explains that the group has “taken away some rules” to ensure the hiring process is fair and inclusive. For example, RHG used to have an unwritten rule in which new General Managers were positioned

Radisson Blu Hotel, Dubai Deira Creek

in challenging, more remote locations, which can be difficult for those raising a family. Realising this, the group removed the rule, to ensure every candidate and employee had a fair chance of reaching success. Through these operational changes, RHG has seen an increase in the number of women joining the company and is confident that this will continue. Another incentive added to attract more women to join the business was RHG’s

move to expand paid maternity leave in certain areas, for example, in the UAE. The group also had the first-ever female General Manager in Saudi Arabia, who was a Saudi native. “This was a groundbreaking achievement,” Huijbrechts exclaims. “Before we hired her, we actually needed to check behind the scenes with the government to ensure we were legally allowed to do so.” By employing just one woman from Saudi Arabia into a leadership position, more women were encouraged to take similar roles. Now, more than 200 women are in leadership positions in Saudi Arabia, something that wasn’t possible before. In the future, Huijbrechts and RHG look forward to creating even more groundbreaking revelations, both in terms of DEI and sustainability, to ensure the business continues on as an industry leader.

businesschief.ae

VISIONAR CEOs IN SOUTH AF

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FRICA

Leading some of South Africa’s largest companies, these 10 highperforming CEOs are among Africa’s most skilled strategists and inspiring visionaries WRITTEN BY: KATE BIRCH

eading a company is no mean feat – especially today when increasingly complex issues complicate decisionmaking and emerging technologies are changing, well, everything. What differentiates one ‘great’ CEO from another is debatable, dependent on many factors – not least the country, industry, and circumstances in which they operate. That said, there are skills and qualities that make a ‘great’ CEO. As well as being able to lead an organisation with vision and purpose while navigating challenges and change, great leadership requires an ability to inspire and motivate, to think strategically and plan, and to make quick and decisive decisions, even when faced with uncertainty. This pretty much sums up our pick of the top 10 CEOs in South Africa – chief executives who are leading some of the country’s bestperforming companies and are working to transform both the company and industry. businesschief.com businesschief.ae

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MPUMI MADISA Bidvest Group Market value: US$4.81bn Revenue Fiscal Year 2023: US$6.06bn

When Mpumi took the helm of Bidvest Group in 2020, just shy of her 40th birthday, she became the only black female CEO among the top 450 JSElisted companies and the first to be appointed Bidvest chief. Since taking the helm mid-pandemic, Mpumi has successfully steered the industrial conglomerate to double-digit profits and grown the Group’s renewables and alternative energy segment. With four years under her Bidvest belt, Mpumi has worked her way up the leadership ranks, including as Executive Director and was CEOin-waiting prior to transitioning. Passionate about mentorship and female leadership advocacy, Mpumi has worked on creating an enabling environment especially for women to succeed and rise.

PAUL HANRATTY

Sanlam Market value: US$6.65bn Net results 2022: US$530mn With 40 years in insurance, Paul Hanratty has led Africa’s largest insurer and non-banking financial services group since July 2020 – delivering record financial results in 2022 and in H1 2023 driving a net results increase in financial services of 30%, along with a 19% jump in business volumes and a surge in share price. Hanratty has delivered on the group strategy amid challenging operating conditions, recently acquiring 60% of leading health insurance provider AfroCentric, overseeing the buyout of innovative insurer BrightRock and partnering with Capital Legacy to extend the group’s range of client solutions – not to mention, scooping an award for long-term insurer of the year. A qualified actuary, Hanratty previously held key leadership positions at Old Mutual, and has served as an independent non-executive director of MTN since 2016. businesschief.ae

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PIETER ENGELBRECHT Shoprite Group Market value: US$6.97bn Revenues: US$2.85bn

As the driving force behind Shoprite Group’s strategic thinking since 2017, Pieter Engelbrecht has led the Group to become Africa’s largest and most successful food retailer and low-price leader – and South Africa’s largest employer. He successfully steered the Group through the pandemic, ensuring job security for the Group’s 154,000 employees and under his leadership, Shoprite is achieving industryleading growth in sales and profits. A chartered accountant, Pieter started his career in the corporate finance divisions of PwC. Joining Shoprite in 1997, he rose through the ranks becoming COO Shoprite Checkers in 2005, where he was instrumental in guiding the Group’s expansion. businesschief.ae

NOMPUMELELO ZIKALALA Kumba Iron Ore Market cap: US$7.14bn EBIDTA H1 2023: US$1.1bn

A seasoned executive with 20 years of mining experience, Nompumelelo (Mpumi) Zikalala has served as CEO of the JSE-listed Anglo American subsidiary since January 2022. Under her leadership, Kumba, the fifth largest iron-ore producer in the world and the largest in Africa, delivered a resilient financial performance in 2022. Passionate about transforming mining, Mpumi has helped to drive greater diversity and lead the industry’s move to sustainability and carbon-neutral mining. She is also committed to accelerating the involvement of women and youth in the industry. This role follows a 20-year career for Mpumi at diamond mining giant De Beers, where she held various leadership roles and was the first female GM in the Group.

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ARRIE RAUTENBACH Absa Group Market cap: US$8.48bn Revenue 2022: US$1.11bn

The first internally appointed CEO since 2005, Arrie took the helm of Absa in 2022 and has since led from a transformation and inclusivity perspective – bringing black representation at leadership level closer to 50% and ensuring succession management is part of the corporate strategy. Under his leadership, the group saw a 13% increase in revenue in the first half of 2023, thanks largely to its diversification strategy. With a banking career at Absa and Barclays Africa spanning some 25 years, Arrie previously led Absa’s retail banking unit – which was awarded ‘Best Retail Bank in Africa in 2020 – and as chief risk officer, was instrumental in navigating the split from Barclays and in devising the Group’s strategic vision.

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FLEETWOOD GROBLER Sasol Market cap: US$8.37bn Revenue H1 2023: US$8bn

With a career at Sasol spanning 40 years, Fleetwood Grobler took the reins of the energy and chemicals group in 2019, just months before the pandemic hit. Established in 1950, the Sandton-based conglomerate operates in 33 countries and employs 30,100 people. Under Grobler, revenues have grown 35% and the petrochemicals major – South Africa’s second-biggest emitter of greenhouse gases – has targeted a 30% reduction in emissions by 2030, net zero by 2050. Among plans, Grobler has indicated replacing some coal use with natural gas, addressing operational issues, and testing the manufacture of green hydrogen. The mechanical engineer has worked within most of Sasol’s operating facilities, including as EVP of its chemicals business in Germany. 54 November 2023

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SHAMEEL JOOSUB

Vodacom Group Market cap: US$11.226bn Revenue 2022: US$6.17bn Joining in 1994, Shameel has operated at senior level in various companies across the group for 22 years, including leading Vodacom South Africa and as CEO of Vodafone Spain. As CEO of the South Africa’s biggest mobile carrier for more than a decade, Shameel has won high praise for growing revenues while navigating major hurdles like widespread loadshedding and spectrum availability. Under his leadership, Vodacom has delivered industry firsts, from launching the first commercial LTE network to the first 5G mobile network in South Africa, and expanded service offerings beyond broadband connectivity, with financial services showing strong growth in recent years. This year, Shameel landed the MyBroadband Telecoms CEO of the Year Award and secured an honorary doctorate from the Central University of Technology. businesschief.ae

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THE TOP 100 COMPANIES IN TECHNOLOGY READ NOW

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RALPH MUPITA MTN Group Market value: US$11.78bn Revenue 2022: US$4.5bn

Credit: AfDB Group

As President and CEO of Africa’s largest mobile operator since 2020, Ralph Mupita has played a key role in strengthening the Group’s financial position, delivering the successful listing of the MTN Ghana, Nigeria, Rwanda and Uganda subsidiaries, and driving the Ambition 2025 strategy – designed to turn the operator into a diversified tech giant by 2025. A seasoned businessman with expertise in financial services, M&A and emerging markets, the Zimbabwe-born civil engineer first pivoted to finance before moving into telecoms. He spent 15 years at pan-African insurance and banking group Old Mutual South Africa, where he climbed the ranks to CEO of emerging markets. He then joined MTN in 2017 as finance chief before securing the top job just three years later.

businesschief.com

ALAN PULLINGER FirstRand Bank Market value: US$21.80bn Revenue 2022: US$7.07bn

Since taking the helm of Africa’s largest financial services group, the multimillionaire businessman has led FirstRand to impressive financial results, with the lender’s total assets consistently growing, from US$80.63 billion in 2018 to US$105.4 billion in 2022. Known for its integrated financial services portfolio comprising FNB, RMB, WesBank and Aldermore,

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the JSE and NSX-listed bank holds active operations in South Africa, the UK and SubSaharan Africa. Under his watch, FirstRand has continued to be in the top two most profitable and highest valued of South Africa’s banks, as well as a digital leader. The group has secured numerous accolades, with RNB named best consumer digital bank in South Africa in 2023 by Global Finance, and FirstRand recognised as the country’s best bank by Euromoney in 2021. As a highly respected and seasoned banker, Alan has enjoyed a long and successful career at FirstRand, spanning 26 years, working his way up the ranks to the role of RMB chief executive and then to Deputy CEO in 2015 before becoming CEO and board member in April 2018. Earlier in his career, Pullinger spent five years as a partner with Deloitte & Touche where he was appointed to partnership. He will step down from the role in April 2024, to be succeeded by COO Mary Vilakazi.

Watch: FirstRand delivers profit bump

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Credit: Prosper Africa

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We Believe In Here - Trailer

60 November 2023

SIM TSHABALALA

Credit: US Embassy South Africa

Standard Bank Group Market value:: US$16.979bn Revenue 2022: US$9.24bn

The man behind Africa’s ‘best bank’, Sim Tshabalala has helmed Africa’s largest bank in terms of assets since 2017 – at age 45 becoming one of very few Black CEOs to lead an African bank. Considered the market leader in South African banking and with a physical presence in 20 countries, the 161-year-old Standard Bank delivered headline earnings of US$1.85 billion in 2022, up 37% on the year before. Describing himself simply as “just a Zulu boy from Soweto”, Tshabalala has worked his way up from the country’s largest Black township to lead one of Africa’s largest financial institutions. He initially trained as a lawyer and was admitted as an attorney of the High Court of South Africa before deciding to switch to banking – and has since spent more than two decades in the financial services industry. Tshabalala has risen rapidly through the ranks at Standard Bank, a Global 500 firm, starting out in structured finance in the corporate and merchant banking division in 2000 before taking the top job in the Africa division – where, in just four short years he grew the division from 21.4% to 28.3%, thanks largely to a clutch of strategic acquisitions in the retail sphere. Last year, Tshabalala was appointed as an Honorary Professor at the University of Stellenbosch Business School (USB). businesschief.ae

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LEADERSHIP | EXCLUSIVE INTERVIEW

DOING THINGS DIFFERENTLY Business Chief meets Aloki Batra, CEO of Dubai’s FIVE Hospitality – the company shaking up the hotel industry with sector-leading results based on a digital-first strategy and focus on fun WRITTEN BY: KATE BIRCH

ntertainment. That is the missing ingredient from the hospitality industry, according to Aloki Batra, the showman CEO of FIVE Hospitality. He’s not making this up – the dictionary definition that Aloki confidently shares is taken straight from the Oxford English Dictionary. That celebrated tome defines hospitality as ‘The act or practice of being hospitable; the reception and entertainment of guests, visitors, or strangers, with liberality and goodwill.’ “Where the hell is the entertainment in the hospitality industry?” Aloki asks, laughing to himself.

64 November 2023

“I don’t know if what we do is disruptive, but other hotel chains, they’re a lodging industry, not a hospitality industry.” It’s fair to say that FIVE takes the entertainment element of hospitality to heart, and five million guests can’t be wrong. Dubai-based FIVE is shaking up the hotel industry with sector-leading results based on a digital-first strategy and focus on fun. Describing itself as an ‘immersive 360degree luxury lifestyle entertainment destination’ FIVE Hotels and Resorts has created an award-winning formula with digital-savvy guests who crave experiences rather than simply a place to sleep. Anyone in the hospitality industry thinking FIVE is all show and no substance should take a close look at the numbers. In 2022, FIVE Palm Jumeirah and FIVE Jumeirah Village enjoyed an impressive average occupancy rate of 93% – 36% higher than its competitors. FIVE Hotels and Resorts is also performing three times higher in terms of TrevPAR – an industry term that measures total revenue per available room. FIVE Jumeirah Village is the most reviewed hotel on Booking.com with more than 38,000 reviews and a rating of 9.1/10. And in those difficult pandemic years, FIVE Hospitality saw revenue grow by 210%. Its numbers on sustainability are equally impressive. As well as being the only company to secure an ‘A’ rating for ESG 66

September 2023

T H E WO R L D H A S C H A NG E D. I REMEMBER PEOPLE IN THEIR 3 0 s W H E N T H E Y S TA R T E D M A K I NG G O O D M O N E Y WO U L D WA N T T O S AV E T O B U Y A H O U S E – NOW T H E Y J U S T WA N T T O R E N T A N D K E E P O N M OV I NG E V E RY F E W Y E A R S within the ISS Corporate rating universe among 10,000+ companies, FIVE hotels are all powered by 100% renewable electricity, and have all secured LEED Platinum certification – with FIVE Zurich claiming the secondhighest score in the world. Driving this success, Aloki has been recognised as one of the Top 100 CEOs in the Middle East by Forbes and his relentless efforts to integrate both technology and sustainability into the business has led to high profit margins and seen FIVE recognised as

one of the region’s most innovative companies by Fast Company. Clearly, Aloki has hit on a winning formula and while he may mask his achievements by suggesting he was in the right place at the right time – spotting Dubai’s potential as a global tourism hotspot before most had even heard of it – it would be wrong to downplay his influence on the FIVE success story. Not bad for someone with no formal hospitality training, but with an innate understanding of what people want.

Video:

Come Play @ FIVE Hotels and Resorts businesschief.ae

LEADERSHIP | EXCLUSIVE INTERVIEW

I T WA S S O I N E X P E N S I V E T O TAC T I C A L LY G R OW T H I S B R A N D D I G I TA L LY I N A R A P I D LY D I G I T I S I NG WO R L D – F R O M I N S TAG R A M T O FAC E B O O K T O G O O G L E S E A R C H Palm Jumeirah gamble pays off The FIVE story started back in 2011. Then known as SKAI Holdings, the real estate development and hospitality company made a huge success of running a small hotel in Dubai’s Green Community that they had acquired from Emaar Hospitality. That led to the bold decision to build a residence and hotel on the prime Palm Jumeirah development – something Aloki describes as ‘an expensive, all-in investment’. Unfortunately, the relationship with the potential hotel operator did not work out. That’s when Aloki got the call asking him to run the hotel himself – having successfully sold the US$400 million residences. “I had a fairly good idea how to run rooms from a small perspective, but never luxury,” Aloki admits. “I had never run a restaurant. Parties, for sure, I did that as a kid and these things stay with you.” SKAI became FIVE in 2017 and Aloki made the brave decision not to learn the hotel business from anyone else, but instead to go through the process his way – and that was to focus on the brand from a digital perspective. He had been quick to recognise the drive to digital and the fact that there was an opportunity for a small brand like FIVE to take on the big boys. 68 November 2023

FI VE - S TAR GREEN CREDENTI ALS FIVE Holdings has issued a US$350 million green bond with Nasdaq Dubai, underlining the hospitality group’s commitment to sustainable finance and leadership in ESG. “FIVE’s first Green Bond Listing on Nasdaq Dubai is an extremely proud moment for me personally, and for the 1,500 FIVE Tribe Members of 80+ nationalities whose dedicated pursuit of ‘Sustainable Indulgence’ have resulted in this historic moment for our homegrown brand,” Aloki tells Business Chief. FIVE Hotels & Resorts are among the top-rated ‘smart and sustainable’ hotels in the world and the first in the UAE to receive International Renewable Energy Certificates (I-REC), ensuring 100% renewable electricity. Not only that, but FIVE has secured a completely LEED Platinum hospitality portfolio. While FIVE Palm Jumeirah is the only SPIRE Smart Building rated hotel in the world, FIVE Zurich is the only Leed Platinum hotel in Switzerland and claims the secondhighest score (84 points) in the world. FIVE is the only company to receive an ‘A’ rating for ESG within the ISS Corporate Rating universe among 10,000+ companies. FIVE’s governance practices, evaluated as part of its world-leading ESG rating, achieved ‘A+’ for Code of Business Ethics and ‘A+’ for Compliance Procedures – the highest marks possible. businesschief.com

“We just didn’t figure on their radar. It was so inexpensive to tactically grow this brand digitally in a rapidly digitising world – from Instagram to Facebook to Google search,” he says. Now, 80% of FIVE’s marketing budget is allocated to digital marketing, primarily because FIVE’s target audience are active on social media platforms. This next generation of global travellers simply do not want to stay at the kind of hotels their parents frequented – quality, five-star establishments in their own right, but a very different, sterile experience. “Trends are trends and people want to do different things and we just need to be visible and create that discernible difference,” says Aloki. “This is my brand. This is us and we’re different. You can’t compare. So I tailored a lot of our F&B, a lot of our events, a lot of our venues to cater to that feeling of difference – and now we almost have a cult following. A L OK I DR IV ING A D IGITAL - FI RS T CUS TO MER EXPERI ENCE As the driving force behind FIVE Hospitality’s success, Aloki’s determination that all properties be equipped with leading-edge hardware and cutting-edge experiential software has resulted in high performance in both customer satisfaction scores and record revenues, ensuring FIVE consistently 70 November 2023

outperforms its competitors. With a digital-first customer experience, the brand has achieved lower costs and higher profitability margins ultimately leading to higher direct brand revenues, proven by direct bookings growing from 25% in 2019 to around 54% in 2022.

LEADERSHIP | EXCLUSIVE INTERVIEW

“When you look back, we all make a lot of mistakes, but sometimes when you have a certain vision and a certain direction, and it works, it’s a beautiful journey.” FIVE LUXE launching on JBR That journey continues. With hotels on Dubai’s Palm Jumeriah and also in the city’s Jumeirah Village Circle, not to mention a property in Zurich, FIVE is taking things to another level with the launch of the FIVE LUXE property on Dubai’s prime JBR beach. “We’ve been running at over 90% occupancy through the year and our rate has gone up 150% since we started in 2018, so obviously we are not able to cater to the demand our brand has,” says Aloki. “I realised we had the opportunity to take it up a notch in terms of finishing. I’m not trying to change my customer base. I just believe our customers are more influential and have much more money than ever before. “The world has changed. I remember people in their 30s when they started making good money would want to save to buy a house – now they just want to rent and keep on moving every few years.” It must be a challenge leading a hospitality business when you do not come from a hospitality background, so how does Aloki manage – what is his leadership style? He says he believes to be a leader you need to be both a student and a teacher. You need

80%

The percentage of FIVE’s marketing budget allocated to digital marketing

100%

Renewable electricity used to power FIVE hotels

US$350m

The value of FIVE Holdings first green bond recently issued with Nasdaq Dubai

to know how to inspire, but you also need to know your job. “I’ve never believed in the carrot and stick approach. If you can inspire the team, you can bring out the best in them and that passion is why we can deliver better results. If I can inspire passion in people and what they’re doing, and I can keep my door open for them to come and talk to me any time, I’ve done my job.” That’s his job as a CEO, but what expectations does Aloki have for the hotel staff? Active on social media, Aloki can usually be found encouraging his team members to party with guests – something that would surely be frowned upon in certain hospitality circles. businesschief.ae

LEADERSHIP | EXCLUSIVE INTERVIEW

I’VE NEVER BELIEVED IN THE CARROT AND STICK A P P R OAC H . I F YO U C A N INSPIRE THE TEAM, YO U C A N B R I NG O U T T H E B E S T I N T H E M A N D T H AT PA S S I O N I S W H Y W E C A N D E L I V E R B E T T E R R E S U LT S He says it’s essential for FIVERS – for that is what they are called – to listen to their customers and be aware of their needs “The secret of FIVE is people who can adapt, who welcome change – not for the sake of change, but by listening to people. Our brand is an ever-evolving one. As the customer needs change, we will be the first to adapt and change,” he says. Around 30% of guests return for more of the so-called FIVE Vibe. It’s just one of the many stats that shows FIVE is shaking up the hospitality industry by embracing digital and offering fresh experiences to a changing customer base. “For me it’s always, listen to your customer, always watch your customer, and the customer is always right,” says Aloki. “I believe in giving customers great value, a great time and a memorable experience – and they keep coming back.” businesschief.ae

LEADERSHIP | DEVELOPMENT

EMIRATISATION Cultivating the UAE’s future leaders While private-sector Emiratisation reaches record highs, numbers remain low and retention is an issue – so how can businesses best keep and cultivate Emirati leaders? WRITTEN BY: KATE BIRCH 74 November 2023

hen I first arrived in Dubai in 1995 as a British expat, the workforce was unmistakably split – expats worked in private business, UAE nationals in the public sector. Fast forward nearly three decades and the picture is

quite different with more than 81,000 Emiratis integrated into the private sector. It’s an achievement largely driven by Emiratisation, an initiative first introduced by the UAE government in 1998 to raise representation in the workforce – and then

relaunched more than a decade ago with a focus on the private sector. But while nationalisation in UAE private business has largely lagged in the decade since, more recent efforts and policy rulings have pushed Emirati representation to

record highs in 2023 – climbing almost three-fold (57%) from the year before, according to the MoHRE. This means that more than 17,000 private-sector companies now employ 81,000 UAE nationals – around 4% of the Emirati population. businesschief.ae

LEADERSHIP | DEVELOPMENT

There is a need to invest in future skills to develop the next generation of Emirati leaders who can drive the UAE’s transformation into a green, digital and knowledge-based economy Khaled Bin Braik Consulting Partner, PwC Middle East

As impressive as the numbers are, it remains that locals still only account for 4% of private-sector employees despite making up 11.5% of the country’s population. “While there is a high concentration of Emiratis in the public sector, the nationalisation rate is disproportionately low across economic sectors compared to the overall UAE population,” says Khaled Bin Braik, PwC’s first homegrown UAE Consulting Partner at PwC Middle East. Khaled, who spearheads PwC’s award-winning Emiratisation Programme Watani, tells Business Chief that the onus is now on private-sector leaders to take up the challenge. “This means transitioning from playing a supporting role 76 November 2023

to a leading one in driving nationalisation,” he urges. The fact that more than 440 private companies were recently hit with fines for failing to meet targets of 3% national representation by July 7 gives an indication of just how far business needs to travel. It’s not only about hitting Emiratisation targets but maintaining them – and that means investing in national talent to ensure retention, satisfaction and progression. “There is a need to invest in future skills to prepare young Emiratis for the future of work and develop the next generation of leaders who can drive the UAE’s transformation into a green, digital and knowledge-based economy,” Khaled tells Business Chief. Recent groundbreaking research from PwC Middle

East shows that while interest in private-sector employment among younger Emiratis is growing, many nationals choose to return to the public sector – with two-thirds of those currently working in private companies considering such a move. Among the reasons, 20% cite dissatisfaction with the compensation and benefits packages compared to publicsector peers, while 62% of graduates perceive it more of a challenge to secure employment in the private sector. Khaled insists that understanding and responding to the preconceptions and preferences of Emirati employees is “crucial if employers are to break down traditional barriers and secure the strongest appointments long-term”.

businesschief.ae

LEADERSHIP | DEVELOPMENT

He urges businesses to be more proactive in attracting, developing, and retaining national talent and points to various initiatives, including reimagining learning pathways to provide the right development opportunities and environment for nationals to grow and thrive. Among other retention pointers, Khaled suggests creating personalised reward programmes to recognise the contribution of nationals, redefining

performance management to deliver accelerated career journeys, and introducing career conversion programmes to open up more resilient pathways. And given PwC research finds 8 in 10 Emirati graduates surveyed have a desire to develop entrepreneurial skills, Khaled urges companies to provide opportunities for entrepreneurial ventures – enabling talent to “maintain high levels of job stability whilst mitigating the financial risks”, and to eventually

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Join PwC Middle East and be part of the transformation

78 November 2023

HOW CAN THE PRIVATE SECTOR ATTRACT, DEVELOP AND RETAIN TALENT? Khaled Bin Braik, PwC’s first homegrown UAE Consulting Partner urges the private sector to be more proactive in attracting, developing and retaining national talent. He outlines these considerations:

4. Create personalised reward programmes to recognise contributions and reward them fairly and equitably 5. Enable effective transition and mobility by introducing reskilling and career conversion programmes

1. Develop a purpose-driven nationalisation agenda by embedding targets and provisions into talent strategies 6. Leverage technology and data analytics to drive better decision-making through 2. Leverage diversified and optimal evidence-backed nationalisation sourcing channels to identify, evaluate, interventions recruit and onboard nationals across 7. Offer opportunities for entrepreneurial different segments ventures within the boundaries of the 3. Reimagine learning pathways to corporate (intrapreneurship), enabling provide the right environment for nationals to maintain high levels of job nationals to thrive stability whilst mitigating financial risks.

become self-employed or grow their own business. These aren’t pie-in-thesky pointers, either, but ones that have been road-tested and proven successful as part of PwC’s own firm-wide Emiratisation strategy – which the Big Four firm has been working on since 2012 with its Watani Programme. Supporting UAE national talent development across their entire career journey, Watani offers a range of dedicated programmes, facilitates client exchanges, and provides comprehensive training opportunities. It is further supplemented by STEP, which supports talent development of UAE client’s

Understanding and responding to the preconceptions and preferences of Emirati employees is crucial if employers are to break down traditional barriers and secure the strongest appointments long-term Khaled Bin Braik

Consulting Partner, PwC Middle East businesschief.ae

The greatest leader is the one who motivates others to do great things Abdalrahman Bin Kharbash

Deals Senior Associate, PwC Middle East

80 September 80 November 2023 2023

LEADERSHIP | DEVELOPMENT

A BD A L R A H MA N BIN K HAR BA SH ON W HA T M A K E S A N E XC E P TIONA L LEADER

Following three years of leadership training at PwC Middle East, and a year into his role as Senior Associate in PwC’s Deals practice, Emirati Abdalrahman Bin Kharbash shares his vision for exceptional leadership. “The greatest leader is the one who motivates others to do great things. If a leader can inspire others to achieve and realise their potential, they will

future leaders via secondment opportunities into PwC. “By prioritising the development of local talent, we are also helping to upskill the region’s broader talent pool and better prepare them for the workforce needs of the future.” And the numbers speak for themselves, with national representation at PwC Middle East doubling since 2019 to 1,200 UAE employees in 14 offices across the GCC. Not only that, but close to 50% of PwC’s national workforce is female, and more than 6,000 Emiratis have been trained in the firm’s Academy over the last decade, in

undoubtedly grow future leaders to take up the vision and carry it forward. Emotional Intelligence is the key. The challenge of being in a leadership role is to be strong, but never rude, to be kind but not weak, to be humble, but not timid. Great leaders understand and utilise the delicate balance needed to empower and enforce others to achieve the collective goal.”

everything from leadership to data analytics. Little wonder then that PwC is considered the sector pioneer for professional services firms when it comes to nationalisation, securing the Best Emiratisation Supporting Entity award by MoHRE in 2020; and for its Watani Programme, landing Best Nationalisation Initiative in the Private Sector at the GCC GOV HR Awards in 2022. As further proof of PwC’s success in embracing and developing nationals, Senior Associate in the Deals practice Abdalrahman Bin Kharbash was recently

recognised at the governmentbacked Nafis Awards as the UAE’s best Emirati talent in private-sector finance. Joining PwC’s Watani programme in June 2019, Dubai-based Abdalrahman chose the private sector route as he feels it is “the perfect platform to showcase my skill set” and believes in the UAE vision of Emiratis taking ownership to solve many of the challenges the country faces. Empowered to take an active role in working with high-profile clients and complex engagements, Abdalrahman has been at the forefront of the development and betterment of the country and region. In leadership too, he has been encouraged to take key decisions and ownership, and to learn to apply his leadership mindset in real and impactful situations. “PwC understands that an ambitious nation requires leaders across all sectors to drive it toward growth and they have developed a tailored businesschief.ae

AMA Z O N U A E L A U N C HE S E MIR ATI LE A D E R SHI P P R OGR AMME Titled Injah, the recently launched Future Amazon Leaders Programme has been developed as part of Amazon’s multi-year talent strategy to upskill and train Emirati employees for leadership roles across the region. In support of the UAE 2031 vision, Injat aims to build a robust pipeline of Emirati leaders, including women leaders, and has been created with the UAE’s gender

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balance goals in mind. This two-year immersive programme is tailored to develop essential leadership skills and will equip Emiratis with deep knowledge in industryspecific management skills, cultural assimilation and mentorship – empowering Emiratis to unlock innovation, solve complex business problems and drive meaningful change.

Emiratisation programme that is far more than simply ticking boxes,” he tells Business Chief. Four years on and Abdalrahman not only serves as Senior Associate in PwC’s Deals practice, helping organisations with M&A and IPOs, but is also the Vice Chair of PwC’s first-ever Youth Council, where he plays a key role in developing strategies and plans for local talent acquisition, development, and retention

LEADERSHIP | DEVELOPMENT

Amazon continues to invest in cultivating future leaders who share a common vision of building the most customercentric company in the world Ronald Mouchawar

VP of Amazon MENA

to support PwC’s ambitious strategy in creating a pipeline of future national leaders. “I aim to take on the bigger challenge of driving real contribution to our firm’s nationalisation agenda and turning the needle on a very strategic topic for the UAE.” With 61% of Emirati graduates expressing interest in securing employment in the private sector, according to PwC research – what then can

businesses do to ensure they not only attract but retain talent? The businesses most likely to succeed are those demonstrating a clear and effective plan to invest in Emirati talent for their individual growth, something Abdulrahman says can be achieved via both internal growth plans (upskilling, coaching and leadership opportunities) and external plans, from supplementing tuition to supporting professional qualifications. Abdalrahman points to PwC’s career coach programme, where Emiratis are challenged to set ambitious goals for themselves every year and are held accountable for those goals. Transparency is essential too, with the outlining of clear pathways to career success giving Emiratis an

understanding of what the future might hold for them. Finally, Abdulrahman suggests private sector firms engage in authentic and genuine conversations with national recruits, to understand their needs and to assuage graduate fears about the private sector. “Many in the prospective Emirati talent pool feel they are taking a big leap moving from the public sector – and the private sector can feel alien and daunting. Understanding and dissuading their fears can help them to better visualise a future there.” Armed with such tactics, the revised rules requiring businesses to increase their UAE national count by 2% each year – reaching 10% by 2026 – is not only possible, but if PwC Middle East is anything to go by – highly probable. businesschief.ae

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ESG | GREEN FINANCE

Why every CEO nee

GREEN FINA 86 November 2023

eds to wake up to the

ANCE DREAM Green finance is taking off in the Middle East but there is still work to do, say Shargiil Bashir of First Abu Dhabi Bank and Jose Maria Ortiz of Palladium WRITTEN BY: KATE BIRCH

ESG | GREEN FINANCE

f you think green finance is window dressing for companies looking to bolster their sustainability credentials – this article is not for you. If, however, you agree with PwC that green finance will be a US$2 trillion market in the Middle East alone, and US$22 trillion globally by 2030 – read on. The facts are clear. Green finance is growing quicker in this region than anywhere else, although admittedly it accounts for a relatively small percentage of the global total. That is sure to change. In July, Abu Dhabi-based renewable energy company Masdar concluded a US$750 million green bond issuance that was 5.6 times oversubscribed. Those funds will help Masdar develop renewable projects in developing countries and those most at risk from climate change. That cause is close to the heart of Masdar’s Chairman Sultan Al-Jaber, who also happens to be the UAE Minister of Industry and Advanced Technology, as well as President-Designate for the upcoming COP28 being held this month in the UAE. “It is vital to make finance more available, accessible and affordable for developing economies if we have any chance of meeting climate goals to supercharge sustainable development,” said Al-Jaber. “Ahead of the UAE hosting the UN climate change conference, we must champion initiatives that advance climate finance and decarbonisation.” Financial institutions are also leading by example, including First Abu Dhabi Bank 88 November 2023

ESG | GREEN FINANCE

IF WE FOCUS ON SUSTAINABILITY GOALS, GREEN FINANCE DIRECTLY ALIGNS WITH THESE TARGETS AND IT IS EVERY CEO’s RESPONSIBILITY TO ENSURE THAT THEIR COMPANIES ARE ON TRACK TO MEET THESE GOALS Shargiil Bashir

Chief Sustainability Officer, First Abu Dhabi Bank (FAB)

businesschief.ae

ESG | GREEN FINANCE

ACHIEVING THE TRANSITION TO NET-ZERO EMISSIONS BY 2050 REQUIRES SUBSTANTIAL CLIMATE MITIGATION INVESTMENT IN EMERGING MARKETS AND DEVELOPING ECONOMIES Shargiil Bashir

Chief Sustainability Officer, First Abu Dhabi Bank (FAB)

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Shargiil Bashir

E XE C UTI VE B I O

TITLE: CHIEF SUSTAINABILITY OFFICER COMPANY: FIRST ABU DHABI BANK (FAB)

Credited with being a Middle East LinkedIn Top Voice Green, seasoned banker and CSO Shargiil has led FAB’s ESG efforts for the last three years, establishing a new division and strategy for sustainability. Under his leadership, FAB joined the UN-convened Net-Zero Banking Alliance as the first bank in the GCC to make a net-zero commitment by 2050, was awarded the Best Bank in ESG in the UAE in 2022 – and with a target of US$75 billion in green financing from 2022-2030, FAB is set to be a strategic enabler of the UAE’s sustainable future.

(FAB) – the UAE’s largest by assets and the first in the MENA region to issue a public green bond in March 2022. FAB aims to disburse US$75 billion in green finance by 2030, and facilitated US$9 billion of sustainable projects last year alone. Shargiil Bashir is the EVP and Chief Sustainability Officer at FAB, and he believes every CEO should be taking green finance seriously.

“Green finance is or should be an active concern to CEOs, given its potential to significantly impact a company’s financial performance, its access to capital, risk management, sustainability goals, reputation, regulatory compliance and stakeholder relationships,” Bashir tells Business Chief. “If we focus on sustainability goals, green finance directly aligns with these targets and it is every CEO’s responsibility to ensure that their companies are on track to meet these goals.” Bashir highlights five key reasons why green finance is good for business: improving environmental performance, meeting investor and stakeholder expectations, risk management, regulatory compliance, and access to capital. Jose Maria Ortiz, is co-CEO and Head of Impact Investing at The Palladium Group – a global impact firm that works with corporations, governments, investors, communities and civil society in 90 countries, and has corporate offices in Dubai, Riyadh, Nairobi and Abuja. “CEOs should be delighted with the opportunity to tap into these resources to finance growth and transformation of their companies,” says Ortiz. “Now, CEOs can prepare interventions to decarbonise their value chain, launch new products and services that appeal to the green finance market, launch new facilities, and tap into cheaper capital. “Only CEOs that work in highly polluting industries and do not have the imagination or the capacity to launch green initiatives should be worried about businesschief.ae

ESG | GREEN FINANCE

WITH A US$30+ TRILLION MARKET FOR GREEN FINANCE, THE POSSIBILITIES ARE ENDLESS Jose Maria Ortiz

co-CEO and Head of Impact Investing, The Palladium Group

92 November 2023 92

the advantage that more innovative competitors will have by using that cheaper green capital.” And there is plenty of that green capital around – growing more than 100 times in the last decade, according to Bashir. “Global borrowing by issuing green bonds and loans, and equity funding through initial public offerings targeting green projects, swelled to US$540.6 billion in 2021 from US$5.2 billion in 2012,” he adds.

ESG | GREEN FINANCE

“The Middle East and North Africa’s green finance market is moving towards the mainstream, with total issuance jumping by 122% in 2021 compared to 2020. The issuance in the region also outpaced global growth, although the market continues to account for a small fraction of global volumes.” Let’s put those figures into perspective. Bashir says green and sustainability-linked debt issuance in the MENA region reached US$18.6 billion in 2021, up from US$4.5

billion in 2020. Clearly, that is significant growth, but dwarfed by the three biggest green bond issuing countries – China with US$85 billion, the US with US$64 billion, and Germany with US$61 billion, according to Statista. “Developing countries are lagging although they have a critical role and impact on climate change,” adds Bashir. “Achieving the transition to net-zero emissions by 2050 requires substantial climate mitigation investment in emerging markets and developing economies, which currently emit around two-thirds of greenhouse gases.” Since FAB issued the region’s first green bond, they have completed 14 more, and other banks from the region have taken note and followed the example set. “We are now seeing issuance growing as more participants enter the market, including Riyad Bank, Abu Dhabi Commercial Bank, Dubai Islamic Bank, National Bank of Kuwait, and Qatar National Bank.” Ortiz adds that the Middle East and its oil-dependent economies have taken a longer time to develop the market. However, he says there is a clear objective to lead – with the UAE and Saudi Arabia showing the way forward. “[Middle East countries] will need more time than Europe and the US to fully embrace the concept, understand its importance and develop products that are credible to international investors,” says Ortiz. “However, they have the tailwinds of their sovereign funds to create scale quite quickly.” When it comes to the biggest challenges facing green finance, Ortiz says the very businesschief.ae

ESG | GREEN FINANCE

Jose Maria Ortiz

E X E C U TI VE B I O

TITLE: CO-CEO AND HEAD OF IMPACT INVESTING COMPANY: THE PALLADIUM GROUP

For the last 25 years, Jose Maria Ortiz has been helping government and private-sector organisations transform the societies in which they operate, most recently in Europe, Africa and India. As head of Palladium’s impact investing and natural capital businesses, Jose is passionate about unlocking the power of capital to deliver innovative, sustainable solutions to socioeconomic challenges. He began his career at PwC.

word ‘green’ can create confusion, and could actually erode investor confidence. He says investors are already talking about ‘dark green’ to differentiate from “less green products that have the label but not the substance”. “If we solve the challenge ahead, the green finance market will continue to grow much faster than the rest of the market and the returns will be higher as the cost of capital will be lower,” adds Ortiz. “The beauty of green finance is that it transcends sector and geography. The options are so vast in theme, geography and risk return that it caters to both impact and mainstream investors. With a US$30+ trillion market for green finance, the possibilities are endless.” 94 November 2023

ONLY CEOs THAT WORK IN HIGHLY POLLUTING INDUSTRIES AND DO NOT HAVE THE IMAGINATION OR THE CAPACITY TO LAUNCH GREEN INITIATIVES SHOULD BE WORRIED Jose Maria Ortiz

Co-CEO and Head of Impact Investing, The Palladium Group businesschief.com

TECHNOLOGY | DIGITAL ECOSYSTEMS

Public-private partnerships delivering the digital ecosystem Digital transformations rely on robust and leading-edge digital ecosystems, developed best via public-private partnerships in the MENA region WRITTEN BY: KATE BIRCH

here are few places in the world where digital transformation and digital ecosystems offer as much opportunity as the Middle East & North Africa (MENA). Home to around 6% of the global population and 60% of oil, there is a significant need to diversify economies away from fossil fuels and toward technology. And that creates opportunity. According to IDC, investments in digital transformation are expected to double over the next few years in the Middle East alone. The United Arab Emirates (UAE) is emerging as a leading player – not just in this region, but also globally. With a 99% internet penetration rate, matched only by Saudi Arabia and Norway, the nation is doubling down on digital as part of its We the UAE 2031 vision which aims to focus on social, economic, investment and development aspects to enhance the position of the emirates as a global partner and attractive economic hub. 96 November 2023

L E V E R AG I NG O U R PA R T N E R S ’ S T R E NG WE CAN PROPEL TH R E G I O N ’ S D I G I TA L T R A N S F O R M AT I O N AND REINFORCE TR I N T H E E C O SYS T E M Rohit Chauhan

Executive Vice President, Artificial Intelligence, Mastercard

GT H S, HE

RUS T M

DATA C E N T R E S A R E T H E F O U N DAT I O N O F D I G I TA L E C O S Y S T E M S , E NA B L I NG S E A M L E S S DATA E XC H A NG E , I N NOVAT I O N, A N D E F F I C I E NC Y W I T H I N T H E S E I N T E RC ONN E C T E D E N V I RONM E N TS Faraz Ahmed

Associate, Research, JLL MENA

TECHNOLOGY | DIGITAL ECOSYSTEMS

To achieve those goals, the UAE is looking to enhance its digital ecosystem – comprising stakeholders, systems, and an environment that empowers people and communities to use digital technology to access services and engage with each other. There are many reasons why the UAE is perfectly positioned to deliver on those goals. Aside from the world-leading internet penetration rate, the country also has a young, urban population. Around 88% of people in the UAE live in cities, and the median age is just 33.5 years. Compare that to the US (38 years) and the UK (40 years). Globally, according to DataReportal, the urban population is 57% and internet penetration stands at 64%, while median age is 30.4 years. Interestingly, it is countries from the MEA region that have some of the lowest median ages (including Nigeria, Egypt, Kenya, South Africa, Ghana, Israel, and Morocco) which highlights the potential for tapping into this digital-savvy demographic. Organisations have their own digital ecosystems, of course, but those rely on having a robust, secure and state-of-the-art infrastructure to build upon. “Digital ecosystems are important because they foster collaboration and partnerships between organisations, enabling innovation and growth,” says Faraz Ahmed, Associate, Research at JLL MENA. businesschief.ae

TECHNOLOGY | DIGITAL ECOSYSTEMS

“Overall, digital ecosystems are vital for businesses to thrive in the digital age.” Ahmed, who authored the recent white paper Unleashing the Potential: The Future of Data Centres in the Middle East and Africa, tells Business Chief that digital ecosystems enhance the customer experience by providing personalised and holistic interactions. They also promote innovation and agility by leveraging external resources and expertise. Digital ecosystems also enable data-driven decision-making by integrating and analysing vast amounts of data. Of course, that data requires data centres. “Data centres are pivotal to digital ecosystems as they provide the essential infrastructure for data processing, storage, and management,” he says. “Overall, data centres are the foundation of digital ecosystems, enabling seamless data exchange, innovation, and efficiency within these interconnected environments.” The MEA region is making notable progress, particularly in digital transformation, fintech innovation, renewable energy adoption, smart city initiatives, nurturing start-up ecosystems, and advancing telecommunication infrastructure like 5G networks. Abu Dhabi and Dubai have both been ranked among the top 20 smart cities globally, and Saudi Arabia is fast emerging as a regional player with giga-projects such as NEOM, Qiddiya, and King Abdullah Economic City (KAEC). 100 November 2023

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TECHNOLOGY | DIGITAL ECOSYSTEMS

Ahmed says that with more investment towards digital transformation, the more data centre players are attracted towards investing in a market to cater to the growing demand for data. “We see that MEA countries like the UAE, Saudi Arabia, South Africa, and others who are actively investing in these areas, are leading in bridging the digital divide, improving financial access, and having an active and growing hyperscaler and data centre presence.” The role of AI There is simply no escaping the importance of AI. A recent PwC report says AI will contribute US$320 billion to the region by 2030, and the recent GITEX GLOBAL 2023 show – the world’s largest tech event – was held under the title ‘The Year to Imagine AI in Everything’. While some countries are busying themselves with much hand-wringing when it comes to the regulation and implications for society, the UAE is welcoming the technology with open arms. This positive publicsector attitude coupled with private sector specialisation should deliver the best results. HE Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, has emphasised the government's efforts towards strategic collaborations with the private sector – with many international 102 November 2023

technology giants having their regional HQs in the country. Such collaborations have been recognised as pivotal for accelerating the adoption of AI, seen as a crucial component of the nation's digital advancement and prosperity. The UAE government has signed an agreement with Mastercard to fight financial crime, drive inclusive growth and secure the digital ecosystem – thanks to Mastercard recently opening its Global Center for Advanced AI and Cyber Technology in Dubai.

“AI is playing an increasingly transformational role across our lives,” Rohit Chauhan, Executive Vice President, Artificial Intelligence at Mastercard tells Business Chief. “To secure the digital ecosystem, deploying innovative technologies like AI is now essential. Mastercard’s Centre for Advanced AI and Cyber Technology will enhance AI capabilities and readiness in the region and

usher in a new era of transformative technology worldwide.” Chauhan adds that the UAE is a leader in the fields of AI and digital transformation, and a perfect location for the centre. Mastercard already has a well-established team on the ground so basing its latest AI Centre in Dubai is a natural extension of existing capabilities and a reflection of the region’s commitment to innovation.

T H E I M P O R TA NC E O F C R E AT I NG P U B L I C - P R I VAT E PA R T N E R S H I P S IS MORE AND MORE REALISED A N D C E L E B R AT E D I N T H E MIDDLE EAST BUT STILL MORE A D OP T ION I S N E E DE D Yousef Al Assaf

President, Rochester Institute of Technology Dubai

TECHNOLOGY | DIGITAL ECOSYSTEMS

F R O M D I G I T I S I NG SYS T E M S TO T H I N K I NG A N D E X E C U T I NG academia joins the public and private sectors on delivering an ecosystem for D I G I TA L LY, T H E tothecollaborate ecosystem. UA E H A S I T A L L Talent – ecosystem for the ecosystem Rohit Chauhan

Executive Vice President, Artificial Intelligence, Mastercard

It’s fair to say that Mastercard may not be the first name that springs to mind when thinking about AI and cyber – Microsoft, for one, seems to have more skin in the game. So why is it important for Mastercard to be securing the digital ecosystem? “Given the scale of financial crime and the opportunity for innovation, collaboration between the public and private sectors is critical. We have a shared interest in securing the ecosystem and developing talent in the region,” says Chauhan. “At Mastercard, we provide governments with comprehensive consultancy services, digital infrastructure, cybersecurity, data protection, analytics and research that improve multiple touchpoints across the entire governance ecosystem. We also help digitise public services while facilitating programs to develop cyber resilience among citizens and assisting small businesses in going digital.” Talking of talent, that is a hot topic for business leaders globally, especially when it comes to technology. And that’s where 104 November 2023

The Rochester Institute of Technology (RIT) in Dubai is working with Mastercard to deliver the next generation who will not only fill the jobs of the future but also help shape the future direction of the technology itself. “Collaboration between educational institutions and businesses allows the diversification of the economy and assuring supple communities who can embrace new trends as they emerge,” Dr Yousef Al Assaf, President, RIT Dubai, tells Business Chief. “We pride ourselves on having more than 30 governmental and private partners who we closely work with to define skill sets required in employees now and in the future. “The importance of creating public and private partnerships is more and more realised and celebrated in the Middle East but still more adoption is needed.” Partnerships of all forms are clearly essential for digital ecosystems to succeed, and the partnership between Mastercard, RIT and the UAE Government is a prime example. The emergence of generative AI and its seemingly endless possibilities only adds to the importance. READ THE FULL STORY

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WORK WITH US

EXCLUSIVE INTERVIEW

NEW CHAPTER

FOR IND TURNAR 108 November 2023

DIA’S TECH ROUND CEO

Having led one of the biggest turnarounds in Indian corporate history, Tech Mahindra CEO CP GURNANI sits down with Business Chief to talk future challenges, lifelong learning, and the rise of AI WRITTEN BY: KATE BIRCH

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EXCLUSIVE INTERVIEW

ecember 19 2023 will be bittersweet for Chander Prakash Gurnani. As well as being his 65th birthday, the celebration of that arrival will also mark his departure from Tech Mahindra – the company he has led as CEO for 14 years. Digital transformation specialist Tech Mahindra has evolved and thrived under his reign, leveraging emerging technologies like cloud computing, artificial intelligence, data analytics, the metaverse and Internet of Things (IoT) to drive innovation and efficiency in business processes. CP, as he is affectionately known by friends and colleagues, has built his reputation on the ability to transform, so this passing on of the baton – to former Infosys boss Mohit Joshi on December 19 – is a natural progression rather than the end of the CP story. “I don’t think I am even close to retiring. I will be shifting gears in my life and transitioning into a new phase as a ‘coach’,” he tells Business Chief, in an exclusive interview. “I have dedicated a significant portion of my life to the tech industry, starting as a professional and attaining the position of CXO at age 38. Having served as a captain in this field for an extensive period, I believe it is time to explore a different perspective. I want to pursue endeavours that deeply resonate with my passions and values. I see it as a good time to embark on this personal journey of self-discovery after a long, fulfilling career.” 110 November 2023

Turning a crisis into an opportunity That impressive career saw CP join Tech Mahindra in November 2004 after 18 years as Founder and CEO of Perot Systems India. He has won dozens of awards in that time having led Tech Mahindra’s remarkable transformation journey – and one of the biggest turnarounds of Indian corporate history.

IT IS IMPORTANT TO ME TO LEAVE A LEGACY AT TECH MAHINDRA THAT REFLECTS MY SUCCESSES AS A VISIONARY, STRATEGIC THINKER, AND AMBASSADOR FOR MY COUNTRY

businesschief.asia

111

The number of years CP Gurnani has led Tech Mahindra as CEO

US$14.51bn The market value of Tech Mahindra, as of September 2023

152K The number of employees at Tech Mahindra

The number of countries in which Tech Mahindra operates

T H E 4 Ps O F L EADE R SHIP “Leaders must embrace 4Ps in their professional life – Purpose, Passion, People, and Performance. As leaders, we must be open to new ideas, encourage a culture of innovation, and provide an environment where employees can experiment and learn from failures. They must follow a customer-centric approach and seek opportunities to collaborate with other organisations, startups, academia, and even competitors to drive innovation, address complex challenges, and foster ecosystem growth. Finally, leaders in the tech industry must respond quickly to market dynamics, customer needs, and emerging trends. Challenging the status quo is the only way we progress.” 112 November 2023

His single biggest business achievement was the acquisition of Satyam Computers which has even been featured as a Harvard case study. “Navigating the Titanic called Satyam was truly a defining moment in India’s corporate history – it established Tech Mahindra as a turnaround and people-centric company,” says CP. “We turned a crisis into an opportunity. The merger, that now seems like a perfect match, came with its own share of challenges, including lawsuits. The learnings are some of the best in my life.” CP describes the Satyam acquisition as a “daring and caring” effort where many difficult decisions had to be made to provide a leadership that was honest, credible, and decisive. Corporate governance, shareholder value protection, business and revenue

EXCLUSIVE INTERVIEW

management, transparent communication and talent management were the other high priority agendas that had to be set right. “For me, recognition and awards are purely incidental,” he adds. “My underlying philosophy is that when I wake up in the morning, nobody owes me anything. I must find my place in this world. It has been my constant endeavour to create new benchmarks of excellence. It is important to me to leave a legacy at Tech Mahindra that reflects my successes as a visionary, a strategic thinker, and an ambassador for my country.”

“The resilience that a business develops in the face of disruption can provide a new foundation for growth and success. I have witnessed and dealt with many such complex scenarios in my career. The encouraging news is that we have not only persevered but have emerged stronger and more resilient from those challenges.” When it comes to challenges, CP has steered Tech Mahindra through some

Strategic moves Talking of strategic thinking, Business Chief is interviewing CP on the sidelines of a new chess tournament launched in Dubai and with Tech Mahindra as sponsor. It’s a logical fit and, as ever, CP is looking to transform – invigorating this rather cerebral activity into something of a spectator sport in the form of the Tech Mahindra Global Chess League. For those interested, Triveni Continental Kings beat upGrad Mumba Masters in the final, with Denmark's Jonas Buhl Bjerre beating Javokhir Sindarov in a sudden death match. The game provides many useful analogies for the world of business, and CP is not slow to use chess terminology when it comes to reflecting on some of his biggest challenges. “I look at both challenges and opportunities with excitement. A leader creatively finds opportunities from the challenges and checkmates them,” he says.

I REMAIN STEADFAST IN MY FAITH IN THE INDIAN TECH ECOSYSTEM’S ABILITY TO CREATE AI FOUNDATION MODELS ON PAR WITH – OR ABOVE – GLOBAL STANDARDS businesschief.ae

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EXCLUSIVE INTERVIEW

TO SURVIVE AND THRIVE IN THIS NEW WORLD ORDER, WE NEED TO DISMANTLE THE KNOWN ORDER TO DISCOVER NEW CAPABILITIES blockbusters. Back in 2008 there was the global financial crisis. Then came Covid-19. Many countries around the world adopted a lockdown strategy, but none bigger than India, when PM Modi ordered a nationwide, three-week lockdown for the entire 1.3 billion population. Interestingly, Tech Mahindra was one of those organisations that made major moves during the dark days of the pandemic. According to Brand Finance, the digital transformation consultancy’s brand

value soared by 66%, making it the fastest growing in the top 25 IT services brands. Aside from ‘obvious’ global crises, CP cites attracting and retaining top talent as one of the IT industry’s ongoing battles. Then there is expanding into new markets while managing cultural differences, regulatory complexities, and operational challenges – which all present tests of leadership and organisational agility. “My working style has always been inclusive, adaptable, and customer-centric,” says CP.

TECH MAHINDRA OVERVIEW AND STRATEGY | INVESTOR DAY 2023

The Tech Mahindra Global Chess League's inaugural edition in Dubai

“Identifying emerging trends and technologies helped me steer Tech Mahindra in the right direction and stay ahead of the competition.” India and AI supremacy When it comes to the Next Big Thing, there is only one show in town – artificial intelligence. CP actually found himself in a chat faceoff with OpenAI founder Sam Altman recently when the ChatGPT chief suggested Indian tech startups would never be able to match what his company had achieved. CP simply said on social media ‘challenge accepted’. “I remain steadfast in my faith in the Indian tech ecosystem’s ability to create AI foundation models on par with – or above – global standards,” CP tells Business Chief. “India has been making significant strides in the field of artificial intelligence and hasa strong foundation to become a global leader in the AI space. The country has a large pool of highly skilled IT professionals, a thriving startup ecosystem, and a supportive government that recognises the importance of emerging technologies like AI.

T EC H M AH IND R A T R ANS FOR MING C H ES S A joint venture between Tech Mahindra and The International Chess Federation (FIDE), The Global Chess League took to the Dubai stage this summer for its inaugural edition. Set to transform the world of chess, this one-of-a-kind initiative delivers a neverbefore-seen format from all over the world to compete in a unique joint team form that focuses on diversity and technology. The league features male and female chess champions competing on the same team and is the first-ever Live televised chess event of its kind. Offering a new way of viewing chess, the league is leveraging nextgeneration technologies, from AI to VR, to offer fans an engaged and interactive viewing experience.

READ THE FULL STORY businesschief.ae

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PEOPLE & PLANET | GIVING BACK

STEPPING

BEYOND USINESS Progress, not perfection is the goal for changemaker Kate Williams, CEO of 1% For The Planet – the global movement making inroads in the Middle East

WRITTEN BY: KATE BIRCH businesschief.com

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PEOPLE & PLANET | GIVING BACK

ecent research from Bain & Company and EcoVadis covering 80,000 private companies and 20,000 listed companies came to one powerful conclusion – a more sustainable business is a more profitable business. And when it comes to companies doing the right thing, few have better sustainability credentials than outdoor apparel brand Patagonia. Founder Yvon Chouinard famously gave the billion-dollar company away in 2022 – putting it into a Trust and non-profit dedicated to defending nature.

W E A R E WO R K I N G O N E X PA N D I N G O U R R E A C H E V E R Y D AY, A N D A R E HOPI NG T O S IG N I F IC A N T LY I N C R E A S E B R A N D AWA R E N E S S I N A L L R E GIONS W I T H I N THE NEXT DECADE Kate Williams

CEO, 1% For The Planet

PEOPLE & PLANET | GIVING BACK

C U S T O M E R S A N D PA R T N E R S I N C R E A S I N G L Y VA L U E S U S TA I NA B I L I T Y, AND OUR MEMBERSHIP D E M O N S T R AT E S O U R C O M M I T M E N T T O T H I S C AU S E Hesam Miri

MD of Dubai-based company, United Bluerise

That is not Chouinard’s only legacy. The story goes that keen rockclimber Chouinard was out fly fishing in 2002 with Blue Ribbon Flies CEO Craig Mathews when they hit upon an idea of how businesses large and small could all make a difference and take responsibility for their impact. That’s how 1% For The Planet was born. Kate Williams – who became CEO of 1% For The Planet in 2015 after working in the environmental nonprofit and outdoor adventure space for more than two decades – explains how it all began. “The idea for 1% For The Planet sparked from a discussion on the environmental impact of business – and how business owners have a responsibility to give back to the planet,” she tells Business Chief. “It started small, with most members being outdoor brands already focused on environmental advocacy. But the network grew rapidly as the logo and mission gained recognition. Today we have over 5,500 business members in more than 60 countries, 120 November 2023

5,500

The number of 1% For The Planet business members in more than 60 countries

57%

The percentage of the 1% For The Planet network that is from outside the US

spanning across almost every industry you can think of. From legal services to baby products, 1% For The Planet members no longer fit in any one category.” Kate says she realised she wanted to pursue an environmental career when she was 18 and on a challenging group backpacking trip in the mountains of Wyoming. Finding herself in a leadership position and dealing with injuries, bad weather and tasked with keeping up morale, Williams had something of an epiphany – that compassionate leadership was at the core of how she shows up for people and the planet.

Credit: Duft Watterson

1% For The Planet CEO Kate Williams with co-founders Yvon Chouinard (Patagonia) and Craig Matthews

Collective action matters Joining 1% For The Planet is the culmination of those early ambitions. While Williams’ personal beliefs make her involvement a no-brainer, what about the businesses that are signing up to literally give away 1% of their total sales? What kind of companies are they? “Though they cover a wide variety of industries (no more than 10% of our network is in any single industry), 1% For The Planet members all have one thing in common: a commitment to do better for people and the planet,” says Kate.

“Lots of brands say they give back, or give the impression of environmental action through ‘green’ packaging and vague statements. 1% For The Planet membership is a way for both businesses and consumers to cut through the noise – to make real impact and reject business as usual.” Of those 5,500 business members, the most recognised is of course Patagonia. Other noteworthy larger businesses include home and kitchen brand OXO, Avocado Green Mattress and life science company Cell Signaling Technology. To date, all member companies have businesschief.ae

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1% for the Planet community volunteers with the Surfrider Foundation

R IS E O F E T HI CAL , E NV IR ONME N TAL CERTI FI CATI ONS FSC recycled certification An internationally recognised certification system that ensures responsible forest management and promotes the use of recycled materials in the production of paper and other forest-based products.

Climate Neutral Certified A globally recognised standard for carbon accountability. Among the 337 brands that have certified, they measured and offset Fair Trade Certified This seal on a 1,408,415 tonnes of carbon to account for product “signifies that it was made according to rigorous, fair trade standards the impacts of their last year’s operations. that promote sustainable livelihoods, LEED certification The world’s most widely safe working conditions, protection of used green building rating system, LEED the environment and strong, transparent certification provides a framework for supply chains.” healthy, highly efficient, and cost-saving green buildings, which offer ESG benefits. Rainforest Alliance Certified hotels promote environmental, social and B Corp Established in 2006 by noneconomic sustainability in agriculture profit organisation B Lab, B Corp and forestry for conference locations or certification is the only certification that employee travel. Fairmont and Hyatt are measures a company’s entire social and among certified hotels. environmental performance.

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Credit: Duft Watterson

As consumers vote for increased sustainability with their spending habits, a growing number of companies are leveraging ethical and environmental certifications like 1% for the Planet to quickly and quantitatively show consumers, vendors, partners and suppliers a commitment to these practices. So what do these mean?

PEOPLE & PLANET | GIVING BACK

contributed around US$450 million to good causes. “Most of the network is made up of small businesses, which goes to show how much 1% adds up – and the importance of collective action,” says Kate. Every 1% For The Planet member donates 1% of all sales, not profits, directly to one or more vetted environmental partners. Then, those companies show proof of donation and 1% For The Planet certifies their giving, providing them access to use the logo to share their commitment. This model allows for meaningful partnerships to be built between businesses and environmental partners. Although the organisation was founded in the US, 57% of the 1% For The Planet network is from outside the US, with Europe being particularly well represented. “We are working on expanding our reach every day, and are hoping to significantly increase brand awareness in all regions within the next decade,” Kate tells Business Chief. While there are an increasing number of companies in the Middle East and Africa signing up to pledge 1%, Kate and her team are working hard to encourage more members to join, and ways to make the network more accessible for a diverse range of businesses and environmental partners. “The 1% For The Planet logo holds credibility and recognition around the world, so a large selling point is increased success in the global market,” says Kate. businesschief.ae

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Charlie Brain co-founder, Lubanzi Wines

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1% For The Planet

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PEOPLE & PLANET | GIVING BACK

W E W E R E D R AW N T O T H E I D E A T H AT I F B U S I N E S S E S A N D I N DUS T R I E S E M B R AC E D T H I S S I M PL E P H I L O S O P H Y AT S C A L E I T H A D T H E P OW E R T O T R A N S F O R M C A P I TA L I S M Charlie Brain co-founder, Lubanzi Wines

MEA companies reap benefits For Hesam Miri, MD of Dubai-based company United Bluerise, joining 1% For The Planet was a no-brainer due to the company philosophy in taking active steps to address health and environmental challenges. “We are a water-oriented company, and so we recognise that access to quality water is a fundamental need, while reducing waste is also critical to a sustainable future. By joining 1% For The Planet, we aimed to align our mission with our actions and establish long-term partnerships with individuals who are willing to contribute to the betterment of our planet and its sustainable future. Joining has brought a number of benefits to its business, including strengthening the brand reputation as an environmentally responsible company. “Customers and partners increasingly value sustainability, and our membership demonstrates our commitment to this cause. Also, being part of the community

has enabled us to connect with like-minded businesses, opening up opportunities for collaboration and shared knowledge. Meri argues that sustainability is not only ethically important but also a strategic advantage in today’s business landscape. “By becoming a member, you’re not only making a positive impact on the environment but also positioning your company as a socially responsible and forward-thinking organisation.” It’s a similar story for Lubanzi Wines, a socially conscious wine company that punches above its weight and creates a difference in the lives of labourers who live and work on South Africa’s wine farms.

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I X A F R I C A : PUTTING KENYA ON THE MAP AS A DATA CENTRE LEADER WRITTEN BY: MAYA DERRICK PRODUCED BY: LEWIS VAUGHAN

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IXAFRICA

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IXAFRICA

Co-Founder & Chairman Guy Willner shares IXAfrica’s journey from start-up to operator sustaining East Africa’s growing demand for digital infrastructure

enya may seem like an unconventional place to build a state-of-the-art revolutionary data centre campus, but if anything it boasts better credentials than other geographies, which lend themselves as favourable to sustainable locations. And that sentiment is echoed by IXAfrica’s Co-Founder and Chairman Guy Willner. The seasoned data centre specialist has experience setting up facilities worldwide, and highlights how Kenya boasts a plethora of benefits – both for the environment, operator and its clientele. “The interesting thing about Kenya is that it uses 90% plus renewable energy. To put that into context, the UK is probably about 25% on a good day. And this is 24 hours, so it’s not wind energy or solar, it’s geothermal – which means it’s available 24/7. It’s a massive thing for Kenya.” Kenya’s a bit like Nordic nations, like Iceland or Norway with 93% renewable energy – due to its access to hydropower, Willner explains. “But geothermal is neither damaging for the environment like building dams, nor is it only available eight hours a day like solar. This is really serious stuff. I don’t think there’s one European Union country that gets anywhere close to where Kenya is in terms of renewable power.” IXAfrica’s data centre campus expansion in Nairobi, Kenya Situated in Nairobi, IXAfrica’s campus is strategically located amid Africa’s growing technology epicentre and is

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Guy Willner is the Co-Founder & Chairman of IXAfrica businesschief.ae

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IXAFRICA

“ Our mission is to build good businesses with good people, and real businesses that generate profits and contribute to the local economy” GUY WILLNER

CO-FOUNDER & CHAIRMAN, IXAFRICA

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the first hyperscale data centre in East Africa. IXAfrica, in partnership with Tilisi Developments, is expanding its offering with a new, second campus in the Kenyan capital. Last year, IXAfrica announced a US$50m investment into its Nairobi One campus to accelerate its development and help cement IXAfrica’s reputation as East Africa’s leading hyperscale data centre provider and to cater to the increasing demand for cloud computing services, digital transformation, and edge computing applications in the region. In collaboration with premier real estate developer Tilisi, IXAfrica purchased 11 acres of land to construct its second data centre campus in the Kenyan capital.

WHY NAIROBI, KENYA IS A FAVOURABLE DATA CENTRE LOCATION Setting up a data centre facility in Kenya can be done with a pretty clean conscience thanks to geothermal energy, Willner attests. With a population across West Africa of more than 400 million – more than 50 million of which in Kenya alone – the average age is around 21, compared to approaching 50 in Europe. And with this demographic statistically more likely to be more frequent users of smartphones, Kenya is located well to deal with the sheer volumes of traffic coming from sub-Saharan Africa. “If you start looking at medium term demographics,” Willner illustrates, “we’re heading for a massive revolution in the next 30 years. Emerging markets have always had high interest rates, so they’ve always had to manage their businesses very carefully. There’s been very sensible management to companies, and suddenly people are beginning to look at Africa in particular and see what they can do.”

And with IXAFrica’s campus located in Nairobi, IXAfrica utilises the naturally high altitude to its advantage. Willner explains: “Nairobi sits at 1,700 metres – to put that into context, the highest mountain in the United Kingdom is 1,300 metres. Europeans and Americans have no clue about what’s going on in Africa, thinking power is terrible and it’s super hot. Nairobi is about 24 or 25 degrees all year round. It’s never too hot, never too cold. So when our first design came through and we had US$300,000 worth of central heating systems for the data centre, the people locally questioned as to why.” Nairobi is the only city in the world with a national park on its doorstep, and Willner shares how a massive part of Kenyan culture revolves around protecting their environment. “There’s always a pull from the teams and people in Kenya to look for green solutions,” he says. “They’re still very close to nature and are really sensitive to that.”

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IXAFRICA

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“The new Tilisi development is at 2,200 metres altitude, so it’s about five degrees cooler. It’s 20 or 21 degrees during the day and maybe 10 at night. Below 14 degrees, you can use free cooling in data centres. So that’s what we’ll be doing. It’s very exciting to have that second campus.” Catering to growing demands in East Africa Using an analogy of a data centre being the head of the internet as it houses the technology for it to function, Willner likens long distance networks to the body and arms, the fingers are the last mile, whether mobile telecoms, fibre to the home or WiFI in a village. “Everything is connected and therefore everything has to be built in synchronisation,” Willner illustrates. “There’s no point in having a data centre if there’s no network. This is all part of a whole development in Africa in general. Dozens of companies are now laying fibre across Africa, 132 November 2023

and also into small communities. We are part of that whole ecosystem where everybody has to do their own thing.” For this reason, Willner attests that IXAfrica’s carrier-neutral and vendor-neutral qualities makes it favourable and desirable to its current and future clients. By providing state-of-the-art infrastructure, green power availability, advanced security measures, and efficient cooling solutions, IXAfrica is poised to play a pivotal role in bolstering East Africa’s technology landscape.” “In terms of environmental responsibility I think we’re probably about a decade ahead of most of Europe,” he says, proudly. “We’ve been able to use local construction techniques and not import a whole load of glass and steel from Europe or Southeast Asia. We’ve got 90% green grid. We’re in a super lucky position in Kenya to have geothermal energy.”

Guy Willner

TITLE: CO-FOUNDER & CHAIRMAN COMPANY: IXAFRICA LOCATION: KENYA Guy Willner – A worldrenowned Data Centre expert and entrepreneur, having invested in and founded a number of DC startups including in emerging markets over the last 25 years. Mr. Willner founded IXEurope in 1998 and oversaw the company’s growth from a sole datacenter in London to a network of 14 datacenters located in four countries IXEurope was purchased by Equinix (NASDAQ: EQIX) for $555 million, and Mr. Willner remained as the President of Equinix’s European sector through June 2008. In 2018, Mr. Willner co-founded IXAfrica, a hyperscale datacenter operator in Kenya that is projected to be the largest hyperscale datacenter campus in East Africa by 2025. In 2022 Guy joined the Board of Elea Digital in Brazil. Mr. Willner holds a bachelor’s degree in engineering from Oxford Brookes University. In 2022 Guy became an Advisor to Helios LLP in Digital Infrastructure with specific focus in the African Region.

“ I think we’re probably about a decade ahead of most of Europe” GUY WILLNER

CO-FOUNDER & CHAIRMAN, IXAFRICA

BLEND INTERNATIONAL WITH LOCAL – THE BENCHMARK FOR TIER 2 DEVELOPING MARKETS As a Design Consultant working solely on data centre projects across the EMEA regions, Future-tech has a unique perspective on meeting international standards and best practice in a wide range of local markets

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Future-tech has worked in 38 different countries across the EMEA region in the last 36 months. In environments as diverse as Helsinki, Milan, Athens, Lagos, Nairobi and Johannesburg. This has led to a company-wide sensitivity to local markets, in both design and management. Working with local consultants that have varying experience with data centre projects, but also with systems, software and timescales that have become the standard expectation in FLAP-based data centre projects. Future-tech’s experience has led us to understand and appreciate the capabilities and nuances of local supply chains, working practices and cultures. By collaborating with key local stakeholders – architects, structural

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and civil engineers, fire, environmental consultants, etc – Future-tech and its partners deliver market-leading international expertise and project processes, combined with in-country knowledge and relationships. Our clients benefit from the advantages associated with maximising resources, materials and labour available in the region, together with international design management, solutions, and technology. This blend results in greater sustainability, lower overall cost, regionally sensitive procurement, and efficient programme delivery. The IXAfrica Nairobi-One Campus is an example of this formula in action. Future-tech is very proud of the relationships developed, the success of the project, and the opportunity to help shape a future Tier 1 market.

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IXAFRICA

A Kenyan data centre for Kenyan people “Our mission is to build good businesses with good people, and real businesses that generate profits and contribute to the local economy in terms of people, in terms of training, in terms of taxes,” Willner adds, excited by the challenge of this emerging market. “The excitement here, although there are other data centre players in Kenya, is building up a data centre company that really makes Kenya part of it.” Willner and IXAfrica pride themselves in delivering a project end-to-end with ESG in mind as well as profit and quality of service.

“IXAfrica is a new company, but from the point that we started designing, it was all about keeping Africa” GUY WILLNER

CO-FOUNDER & CHAIRMAN, IXAFRICA

From left to right, IXAfrica Data Centre Engineer on Board and Shareholder Naresh Mehta, Niraj Shah, Director, Sales & Business Development and Chairman Guy Willner

“There’s no expats in Nairobi, it’s all local employees,” he says. “We might have people there for two months at a time or something like that, but Kenyans run the Kenyan business. IXAfrica is a new company, but from the point that we started designing, it was all about keeping Africa.” Trust is a major factor in the data centre workforce, Willner explains, with experience, reliability and a 24-hour infrastructure key to success – needing a workforce braced and ready for any unexpected disasters, whether that be if power fails at 4am on a Saturday morning or otherwise. businesschief.ae

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“ It will benefit us, it’ll benefit our competitors, but most importantly it’ll benefit the country and the industry” GUY WILLNER

CO-FOUNDER & CHAIRMAN, IXAFRICA

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“We’re the newest game in town. We’ve made sure that our data centre can cope with some of the most complex concentrated super compute that you can find.” The importance of people “You build an amazing data centre, but you’ve got to have people who can operate it and with the passion to make sure this data centre never fails. It’s very much about people,” he continues. “The two things that I like most about the industry is that it’s full of very friendly people who help each other out. And the other thing is the international aspect where you might be doing something

in Nairobi – or London or Birmingham or Paris or similar – but the challenges are very similar. “If I’ve got a friend running a data centre in Brussels, there’s no competition between me and him or him here with my Nairobi business. We can share information, we can share ideas. There’s a lot of sharing of ideas and information. “ The importance of a skilled, local workforce is something Willner firmly believes in, but appreciates is a pool that needs nurturing to shape the industry of tomorrow. For this reason, Willner and his team are working to establish and operate a data centre academy in Nairobi, working with Moringa School.

“I’ve always wanted to establish a school and Kenya’s a good place to do that because it has a very highly educated population,” Willner reveals. “It will benefit us, it’ll benefit our competitors, but most importantly it’ll benefit the country and the industry. If Kenya is going to be a massive regional hub for compute, then it’s good that we get more and more people who are trained up to understand what a data centre is.” Putting Nairobi on the map as a thriving data centre location Willner envisions IXAfrica further establishing itself as a key player in the Kenyan data centre market. Although in its infancy as businesschief.ae

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an operating data centre company, he has a strong vision of populating his campus with expanding hyperscalers in the space of five or six years. “With the Tilisi project being in a big business residential park, just northwest of the central business district, it’s got fantastic power,” he adds. “It’s got 66-kilovolt lines coming in, and with geothermal energy, it’s in an ideal place.” 140 November 2023

And Willner hopes to power the progress of IXAfrica’s growth with the positive relationships he’s built up over his 25 years in the data centre industry. Looking forward Likening the next 12 to 18 months to a white-knuckle ride, Willner and his team are working to set up their data centre from a standing start, navigating building an empty

“ We’re all interlinked because if you’ve got that trusting relationship, you are going to work to build the right thing” GUY WILLNER

CO-FOUNDER & CHAIRMAN, IXAFRICA

data centre into a thriving hub of information exchange, connectivity and thriving business. Partnerships with powerhouses Despite feeling strongly about the strength of his team and having a core passion for startups, Willner acknowledges the power of collaboration across the industry. “A lot of people we’ve worked with for a long time, like Future-tech and Schneider,

help out with our conceptual designs, keeping an eye out to understand what the next steps are in the industry. They help us understand how to operate and keep us on our toes in terms of all the newest technology that’s coming in. “It’s really interesting to have big powerhouses behind us where they’ve got big R&D groups looking at what’s going to happen in 20 years so we can guide our designs so they are futureproof.” Sharing values, core morals and ethical practices with partners is equally valuable to Willner, with trusting relationships and ensuring synchronicity, one of the main things looked for when partnering with businesses for the betterment of IXAfrica, the wider data centre industry and the communities they serve. “You can’t do anything on your own,” he states. “So you need a bunch of friends and they can also keep you in focus. We’re all part of this ecosystem. We’re all interlinked because if you’ve got that trusting relationship, you are going to work to build the right thing.”

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LIFESTYLE | WATCHES

TIME TO INVEST IN PRE-OWNED WATCHES High-end timepieces are an attractive alternative investment, but soaring prices in recent years have seen collectors turn to the pre-owned market WRITTEN BY: KATE BIRCH

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t is almost 250 years since Scottish economist and philosopher Adam Smith popularised the theory of market supply and demand. The world has changed beyond recognition in that time, yet his principle still holds true. However, jolts and disruptions like COVID-19 create quirks, while also proving Smith’s theory. During the pandemic, nearly new, used cars were changing hands for as much as, or even more than, the list price of brand new vehicles – fuelled by a lack of supply and long waiting lists caused by supply chain disruptions.

The new Rolex GMT-Master II is expected to be in high demand on the pre-owned market

CHRISTIE’S IS SE IN MILLENNIA THOSE IN THEIR

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Even more stark was the impact on highend watches, with the most in-demand timepieces commanding prices up to three times the recommended retail price as collectors and enthusiasts clamoured to get their wrists around new models but unable to visit boutiques. Already in limited supply, the secondhand market for haute horlogerie has calmed down since that heady pandemic period but many watches are still trading above asking price.

E E I NG A N I NC R E A S E L COLLECTORS AND R 2 0 S S E E K I NG R A R E V I N TAG E WAT C H E S Nitin Nair

Watch Specialist, Christie’s Middle East

Nitin Nair, Watch Specialist at Christie’s Middle East says they have witnessed a 212% growth in the sale results from watch auctions between 2017 and 2022. “Dubai has increasingly become a hub for watches within the secondary market,” says Nair, “and we have been able to work with collectors across the region, helping them buy and sell at our auctions and increasingly via private sales.” It’s not just watch enthusiasts and collectors who have taken note of the preowned timepiece market – savvy investors have spotted the market’s performance and are also getting involved. As BCG’s recent report ‘Luxury Preowned Watches, Your Time Has Come‘ states, from August 2018 to January 2023 average prices in the second-hand market for top models from Rolex, Patek Philippe, and Audemars Piguet rose at an annual rate of 20%. This compares with an annual rate of 8% for the S&P 500 index. businesschief.ae

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According to Pierre Dupreelle, BCG’s Global Leader for Consumer Behaviour, investor attention has concentrated on a handful of models – Patek Philippe Nautilus, Audemars Piguet Royal Oak, and Rolex Daytona and GMT-Master II – following strong growth in online consumer conversations. “On the second-hand market, these models typically fetch up to 200% of firsthand market prices,” Dupreelle points out. “Individual Rolex Cosmography Daytona watches, with a retail price of US$14,800, were selling recently on pre-owned watch exchanges for US$24,250 to US$38,500.” “Several independent brands and models, especially those seen as high value, unique, or hard to find, are performing strongly, too, including F.P.Journe, De Bethune, and H. Moser & Cie.” Watches have a recognised history of performing well compared to stocks, and

have also shown greater resilience than many financial and consumer product categories. No wonder, then, that pre-owned sales reached US$22 billion in 2021, accounting for almost 30% of total sales in the luxury watch market.A big part in that shift is pure demand outstripping supply, and the increasing demand for instant gratification. This is something that Rustin Yasavolian, CEO of Masina Diamonds has experienced first-hand. “Luxury watches have exploded in value since 2020,” he tells Business Chief. “It is almost impossible to get a luxury sports watch like Rolex, Audemars Piguet, and Patek Philippe without an extensive purchase history. “If you’re looking to get a sports model, these authorised dealers say they will put you on a ‘list’ and keep you updated when the watch model comes in hand. The problem with this is that there are a lot of people

R O L E X C E R TIF IE D P R E - OWNED Worried about buying an authentic timepiece in the second hand market? Most reputable online marketplaces will offer guarantees of authenticity, or you could go straight to the source. Rolex is one manufacturer that offers a Certified Pre-Owned programme

which vouches for the authenticity of second-hand watches when sold by an Official Retailer. Not only that, but the watches are checked to ensure perfect functioning, and there is a two-year international guarantee.

looking for the same watch and the most highly sought-after watches are prioritised to previous clients before new ones. We’ve had customers tell us they’ve been waiting three years for a Rolex Submariner.” Yasavolian says this is where the secondary market really comes into its own, as people simply don’t want to wait years for a watch they may never get. He cites the example of a stainless steel Rolex Daytona 116500 that Rolex sells at a retail price of US$15,100 but currently goes for more than US$30,000 on the secondary market. In February 2022, he says the secondary watch market prices peaked with the stainless steel Rolex Daytona trading at more than US$50,000. Nair also mentions Rolex and Patek Philippe as the two top brands most in demand, adding that grand complications and vintage perpetual calendar references from Patek Philippe continue to be highly sought-after. In 2022, pre-owned sales reached US$27 billion, and Swiss firm LuxeConsult says that by 2033, pre-owned sales will surpass sales of new watches, peaking at US$85 billion. Part of the attraction for investors rather than enthusiasts is that luxury watches are seen as a stable asset built on reputable brands, and with demand from high net worth individuals who are less affected by financial downturns. In the decade from 2013 to 2022, watches

The Patek Phillipe Grandmaster Chime sold at auction for US$34 million in 2019

outperformed other popular collectible investments – such as jewellery, handbags, wine, art – growing at an average annual rate of 7%. businesschief.ae

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L U X U RY WAT C H E S H AV E E X P L O D E D I N VA L U E S I IT IS ALMOST IMPOSSIB A L U X U RY S P O R T S WAT R O L E X , AU D E M A R S P I G U PAT E K P H I L I P P E W I T H O EXTENSIVE PURCHASE Rustin Yasavolian CEO, Masina Diamonds

The Audemars Piguet Royal Oak

So should these in-demand watches be seen as a credible alternative investment for the speculator as well as the specialist? “Our collectors are led by their passion firstly,” says Nair. “Clients tend to collect pieces because they have an interest in the subject – in this instance, horology. We curate collections for clients and as part of that process, we advise them on what to buy and sell depending on their tastes and where we see the market headed. Clients see a return on investment if they have been advised right or have followed their gut feel.” Although the market has cooled, there are still sound investments to be made, and 148 November 2023

while not everyone will have the “gut feel” that Nair mentions, there are some simple guidelines that can steer potential buyers, and collectors, in the right direction. “Every client’s collecting journey is different,” says Nair. “In general, they are all looking for collectible timepieces that will stand the test of time – watches that represent the finest watchmaking skills as well as being in the best condition possible (especially if it’s a vintage timepiece). “Some clients are also attracted to watches with provenance – timepieces that belonged to celebrities or historical figures such as Andy Warhol, Steve McQueen, King Farouk, etc.” Interestingly, BCG’s report also highlights Gen Z and younger millennial buyers who say they intend to spend more on luxury watches.

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LIFESTYLE | WATCHES

In BCG’s survey, 54% of those buyers said that they had increased their spending on luxury watches during the previous 24 months, citing increased ease of buying and selling and more investment opportunities as their top reasons. Half said they expect to spend more on luxury watches in the next 24 months despite economic uncertainties. That is certainly happening in the Middle East, according to Nair, who says Christie’s is seeing an increase in millennial collectors and those in their 20s seeking rare vintage watches – an encouraging sign of the watch market continuing to evolve in the region. With such high demand, you could think that these prized watches should be selling for higher prices directly from the manufacturers. Certainly a few years ago, the secondary market was largely shunned by some of the more luxurious brands, but that has changed. In 2018, Swiss luxury goods company Richemont purchased Watchfinder – a second-hand watch seller with a strong online presence. Audemars Piguet has launched a pre-owned watch business, and Rolex finally embraced the reseller market in 2022. With the secondhand market continuing to grow and investors diversifying their portfolios, not to mention the personal pleasure a watch can bring, it looks like this is time for preloved watches to shine. 150 November 2023

Rolex watches, like the new GMTMaster II, are always in high demand and a strong investment choice

PRE - LOVED MARKET GROWTH The hard luxury resale market is booming. Leading the charge in pre-loved and vintage luxury watches are British auction houses Christie’s and Sotheby’s. Several large brands that initially regarded the secondhand watch business as a competitor have more recently recognised its potential, according to BCG. In 2018, Swiss luxury conglomerate Richemont SA, acquired Watchfinder, Ltd., a pre-owned watch seller with a strong online presence. Audemars Piguet has launched a pre-owned watch business, and some established retailers are now selling pre-owned watches. At the end of 2022, Rolex announced its own preowned watch authentication programme, which it operates cooperatively with authorised jewellers. In addition, thirdparty online platforms including WatchBox, Chrono24, Watchfinder and Timepiece360 have promoted the market’s growth, especially among Gen Z and millennial buyers who are comfortable buying online, by helping educate buyers, encouraging price transparency, and bringing buyers and sellers together.

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