BCme August 2018

MIDDLE EAST EDITION AUGUST 2018 middleeast.businesschief.com

TOSHIBA

Keeping data secure

UNION INSURANCE

EASA SALEH AL GURG GROUP

A world-class supply chain

Embracing on-demand insurance

MBC Group

Picture-perfect procurement INSIGHTS FROM LORRAINE BLACK, MBC’S HEAD OF PROCUREMENT

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FOREWORD

elcome to the latest edition of Middle East’s Business Chief – our August issue!

Opening up this month’s magazine is a special focus on Middle East Broadcasting Center (MBC Group), the region’s largest private media company. James Henderson caught up with Lorraine Black, its long-serving Head of Procurement, to discuss her department’s growing importance to MBC’s business model.

“We’re working in a fast-paced and competitive creative industry,” says Black. “It means we have to be really dynamic, versatile and slick at what we do.”

Deeper into this issue, we speak with Maki Yamashita, Senior VP for Toshiba Europe. After 18 years working for the Japanese tech giant, Yamashita is certainly well placed to offer expertise on the in-vogue topics of digital transformation and cybersecurity.

We explore Beirut’s chief business industries in August’s City Focus while the countdown is on in our latest Top 10 as we rank the highest-profile CEOs across the Middle East.

Finally, our exclusive digital reports boast interviews with, on top of MBC, Easa Saleh Al Gurg Group, Union Insurance, GroupM and The Roof Tile Group, Fletcher Building.

We hope you enjoy this month’s magazine – if you have any feedback, you can find us across social media: @Business_Chief.

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

03

CONTENTS

Middle East Broadcasting Group

10

Procurement excellence for the small screen

Mobile tech for the

UNDERBANKED

44

A NEW DAWN FOR

32

CYBERSECURITY IN THE MIDDLE EAST

Top 10

66

BEIRUT CEOs MiddleEast City Focus

54

in the

CONTENTS

76 EASA Saleh Al Gurg Union Insurance

94

108 Group M

118 Fletcher Building RTG

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MIDDLE EAST BROADCASTING GROUP (MBC)

10

Procurement excellence for the small screen WRIT TEN BY

JA MES HENDERSON PRODUCED BY

HEYKEL OUNI

AUGUST 2018

S U P P LY C H A I N

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

MBC’s procurement division is driving real value for the flourishing Middle Eastern broadcaster

A 12

s the first broadcaster

the last decade. When Lorraine Black joined MBC in 2007 – as the company’s new Head of Procurement, she helped build a team numbering just four which was very transactional in its nature.

to provide a satellitebased free-to-air

Changing perceptions

24-hour television network

“There were no specific pro-

across the Arab world, The Mid-

cesses, it was a basic operation,”

dle East Broadcasting Center

says Black, who led and man-

(MBC) holds a unique place in the

aged the process of CIPS

region’s “Media & Entertainment”

Organisational Certification,

industry. Established in 1991,

which resulted in MBC being the

MBC now offers 16 channels,

first company in Dubai, UAE to

broadcasting a varied line-up of

achieve CIPS certification of

programs and series, including

excellence of its purchasing poli-

flagship shows such as: ‘Arab

cies and procedures in 2008 (a

Idol’, ‘Arabs Got Talent’, ‘theVoice’,

number of MBC’s team are work-

‘theVoice Kids’, and ‘Project Run-

ing on achieving their CIPs

way ME’… among many others.

certifications currently).

MBC is a premium content-

An analysis of the department

centric, audience-focused

was undertaken to understand

company whose success has

the skills of the existing staff and

been underpinned by a procure-

pinpoint gaps that needed to be

ment team that is setting new

filled to create an effective and

standards in the MENA region -

valuable procurement function

thus proving itself to be of real

for the business. An enterprise

added-value to the business, over

resource system (ERP) was

AUGUST 2018

S U P P LY C H A I N

“ The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value” — Lorraine Black, Head of Procurement, MBC Group

13

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

S U P P LY C H A I N

implemented, processes and procedures introduced, and skills added, gradually building a well-rounded team.

As all procurement professionals know, the support of key stakeholders in the business – especially in the C-Suite – is vitally important, and Black says MBC is no different.

“The main challenges we faced was shifting the mind-set of our key stakeholders. Now, we work closely with all of our stakeholders, understanding the business and demonstrating where we add value.

“We also got support from MBC CEO office which made it a lot easier to drive our ideas forward and get buy-in from the company’s senior management. That’s been really important in working with various departments in a collaborative way, rather than as a standalone function. After we showed that we can add value and leverage our relationships with suppliers, the decision was taken that departments would stop getting quotations without the support and involvement of the

“ Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuations, it is critical to keep our costs under control. That makes Procurement strategic to our long-term profitability and success.

Their support has been essential to our migration from in-house systems to outsourced cloud services as part of our digital transformation efforts” — Joe Igoe, Group Director of Operations, MBC Group

procurement team. This has been a real positive shift,” Black concluded.

But don’t just take the procurement team’s word for it; Joe Igoe – Group Director of Operations, comments: “Our revenue is largely derived from advertising, and as we have little direct control over regional ad market fluctuam i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

SERVICES

THE TECHNOLOGY DRIVING A PROCUREMENT TRANSFORMATION AT MBC

16

Business Intelligence Reports Business Intelligence reports have been the ERP solution to monitor spend managed through Procurement. The various dashboards are utilised for monitoring the compliance, category and contractual spend, procurement KPIs, procure-to-pay cycle, and supplier delivery performance.

This data analysis has been utilised by the procurement team for further discussions on process improvements/potential opportunities for savings and value addition.

E-Procurement The procurement team rolled out the E-Tendering system to modernise the procurement strategic sourcing activities. The use of this system has given a 360-degree view of the complete tendering process to all engaged parties.

Automating the system which provides quick comparison tools and reduces the scope for human AUGUST 2018

errors has helped create a more efficient sourcing platform with reduced human effort.

Contract Management System Effectively managing and monitoring the financial and operational performance is critical to every organisation. Bearing this underlying factor in mind, the manual contract administrative and management process was assessed and an in-house Contract Management System was customised and developed to meet our requirements. This system has been effective and efficient in: Automating and accelerating the contract administration and management; managing all procurement contracts and related milestones; Strengthening governance/compliance; stakeholder engagement and collaboration; better visibility through reports; and complete transparency of contract process.

S U P P LY C H A I N

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

S U P P LY C H A I N

Click to watch: Middle East Broadcasting video: Studio City 19

tions, it is critical to keep our costs

and drive forward efforts to grow the

under control. That makes Procure-

business sustainably. These included:

ment strategic to our long-term

spend analysis across the group,

profitability and success. Their support

encompassing various categories, sup-

has been essential to our migration

plier segmentation using the Krajlic

from in-house systems to outsourced

Model, assessment of procurement

cloud services as part of our digital

technologies and the alignment of

transformation efforts.�

MBC’s corporate and business strategy with that of the procurement depart-

Driving growth As part of its effort to shift attitudes

ment.

On the benefits of the thorough

about the role of procurement, the team

research and planning that has been

at MBC carried out detailed analysis of

undertaken, Black comments: “With the

key strategic activities to understand

development of the procurement techm i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

“ As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site. It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of the pieces of the puzzle actually fell down at the right time, in the right location”

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— Durdana Farid, Procurement Manager at MBC Group

AUGUST 2018

S U P P LY C H A I N

nologies, we have been able to cater for

notably MBC’s $20mn facility in Dubai’s

the growing needs of business and ena-

Studio City district.

bling the shift from the cost only to the cost-plus-value model.

Completed in May 2017, the state-ofthe-art studios used for programming

“Efficient use of technology through

for MBC’s satellite network, primarily

effective collaboration with stakehold-

MBC1 and MBC3, and online portals,

ers has been leveraged for operational

complement its headquarters in Dubai

excellence and alignment of strategies,

Media City. At least seven shows are

while collaborative negotiation plans

produced at the studios, which the com-

have brought the best of industry knowl-

pany says are key to being able to

edge and commercial leverage on the

attract top talent, the right expertise,

table enabling multitude of benefits in

and bright, creative minds of the various

securing interruptive value propositions.

disciplines that are related to the crea-

“In addition, supplier value management is imperative to the success of

tive and production fields.

The nature of TV schedules meant

procurement. So, a 360 degree view of

that the deadline was tight, with a pleth-

supplier positioning and business per-

ora of stakeholders to manage. In the

spective has been used to align our

absence of a contracting consultant,

critical suppliers with business strategy

the procurement team worked to

and growth.”

ensure all the elements that were needed to being the project in on time

Building the future

were in place.

With the company fully bought in to the

“A lot of the detail on a project like this

value offered by a skilled and dynamic

are small, but really important to its suc-

procurement function, the team has

cess,” says Durdana Farid, Procurement

grown, and now numbers 26 profes-

Manager at MBC. “The timeline was

sionals across MBC offices.

very demanding, and to hit our tight

As well as the best-and-braces work

deadline we had to ensure we were

the department oversees, it has proven

accurate with all of the detail, such as

invaluable on some major projects,

ensuring all elements of the project m i d d l e e a s t . b u s i n e s s c h i e f. c o m

21

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S U P P LY C H A I N

were compliant to their timelines, from authority approvals to contractors meeting their milestones, to the equipment being delivered on the right time and all the way down to the carpet and furniture for the studios.

The deadline – four months, to be exact – meant that the procurement team had to be a highly effective conduit to bring together all stakeholders working on the project.

“There was a lot of back and forth; and a lot of input from the procurement department,” Farid continues. “As a team we were at the centre of a lot of conflict resolution, so we had to be skilled at providing solutions for the site.

23

It took all of our expertise to make the project a cohesive one, pulling everybody together, making sure that all of the elements and all of

budget target. We spoke to hun-

the pieces of the puzzle actually fell down at

dreds of parties, leveraging the

the right time, in the right location.”

relationships we have built over

The procurement department’s established

the years, both within the com-

relationships with suppliers that have been

pany and with external partners,

developed and nourished over the years were

and were able to bring them

critical to the project’s overall success.

together to agree on really impor-

“The budgets were very tight, with minimum contingency,” says Farid. “So, despite of the

tant issues for the good of the project.”

fact that we had contracted system integrator and contractors, we went to each manufac-

Procurement never sleeps

turer, we have built relationships with and

The business of round-the-clock

negotiated with them directly, which helped

television means MBC’s procure-

the contractor bring down costs and hit the

ment team is not perhaps typical of m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

24

AUGUST 2018

S U P P LY C H A I N

25

“ We’re not working in a manufacturing plant, or for a bank; we’re working in a fast-paced and competitive creative industry. It means we have to be really dynamic, versatile and slick at what we do” — Lorraine Black, Head of Procurement, MBC Group

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

MIDDLE EAST BROADCASTING GROUP (MBC)

Solutions , From Design to Reality and Beyond..

TSL FZ LLC is a specialist in System Design and Delivery, TSL FZ LLC is a part of TSL HOLDINGs, The Group itself has been in the system integration Business for over 35 years now with its HQ in UK, The Dubai entity was setup in the First Quarter of 2008, TSL FZ LLC has made a name for itself for working on projects with tight and challenging civil timelines, Building on the strong reputation of TSL the Dubai entity has been successfully deploying cutting edge technology on time and on budget.

BILAL AHMED Head of Operations Fax +971 (0) 44329142 Office +971 (0) 44329143 Tel +971 (0) 502936086 bilal.ahmed@tsl.co.uk

A testament to our success is recognition by our Industry peers and colleagues in the form of awards that we have won over the years and recently for our showcase project the MBC STUDIO CITY PROJECT. We are thankful to MBC for trusting their flagship Studio city Project to us, As an organisation TSL FZ LLC will continue to grow and deliver to the demands and challenges that our customers face.

S U P P LY C H A I N

have our budgets and ensuring we’re onboarding the correct partners and suppliers, and we also know that we have a duty to make sure the end product is a

1991

Year founded

high-quality one.”

Again, says Farid, the work that the procurement team has put in over the years to build relation-

1,800 Approximate number of employees

ships is paying dividends. “We often work in a live environment, so we need people who we can call in to come in and fix an issue at 2am, or ensure a delivery is made in the middle of the night.

We need to have that flexibility and

those working in other industries.

As Black puts it: “We’re not working in a

that’s when we need something to be free of charge or if some-

manufacturing plant, or for a bank; we’re

thing goes wrong and we need a

working in a fast-paced and competitive crea-

new camera, so it’s important our

tive industry. It means we have to be really

suppliers understand our needs.

dynamic, versatile and slick at what we do.

“We cannot have suppliers that

“Procurement in this region can often be

we don’t have that kind of relation-

very fast, transactional and functional, so it’s

ship with, because the outcome

often about pricing structures and cutting

or the effect that it could have on

costs. But, we work in an environment where

one of our shows on the commer-

the content and quality that we put on-screen

cial impact it could have could

has to be good. The production values on

be huge. So, we ought to be very

shows such as Arab Idol, The Voice and Top

careful when we deal with our

Chef have to be first-class, so on one hand we

suppliers, that we are getting m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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MIDDLE EAST BROADCASTING GROUP (MBC)

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“ MBC procurement team has not only saved us a lot of money in a challenging market, but has helped us get closer to our most important suppliers and partners, at a time of major industry changes” — Sam Barnett, CEO, MBC Group

AUGUST 2018

S U P P LY C H A I N

suppliers who actually understand our business and what our requirements are.”

value,” she says.

“Even with the big productions, we need the buyer there so they

The efforts have been recog-

understand any problems and

nised across the company, right

are able to resolve issues. That

to the very top, says MBC’s CEO,

relationship with the supplier on

Sam Barnett, who comments:

the ground is really key.

“Our procurement team has not

“As a department, our people

only saved us a lot of money in a

have to be versatile and have

challenging market, but has

really good communication

helped us get closer to our most

skills. We can teach buying

important suppliers and part-

skills and negotiation, but the

ners, at a time of major industry

ability to adapt to situations and

changes.”

communicate effectively is what we want.

Buying power

It is a strategy that appears to

In a bid to improve the procure-

be paying dividends, says Farid:

ment function yet further, Black

“I deal with a lot of suppliers and

says MBC is changing the behav-

one constant feedback that we

iour of its buyers to ensure they

always receive is that MBC pro-

are recognised as influencers

curement is one of the most

within the business. The days of

engaged procurement depart-

buyers sitting at their desks,

ments in the industry.”

removed from stakeholders, are gone – it’s all about engagement and interaction.

“We need our buyers to be on the ground and understand the dynamics of the business if we want to continue to add real m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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A NEW DAWN FOR

CYBERSECURITY IN THE MIDDLE EAST AUGUST 2018

33

BUSINESS CHIEF MIDDLE EAST TALKS TO SENIOR VICE PRESIDENT OF TOSHIBA EUROPE, MAKI YAMASHITA, ABOUT HOW VITAL CYBERSECURITY IS IN THE REGION WRITTEN BY

SEAN GALEA-PACE

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

F

or most executives, ensuring that their company achieves success all over the world is at the top of

their lists. Senior Vice President, Toshiba Europe, Maki Yamashita, is no different.

With over 18 years of experience working for the Japanese technology company, he knows the importance of growing the brand at home and expanding abroad. “My career to date has helped me acquire different skills covering a large spectrum of fields, including product and production planning, strategy planning, sales and marketing, and general administration,” Yamashita says.

34

It’s hard to disagree. Having originally been recruited by Toshiba’s Tokyo headquarters in 1993, Yamashita was tasked with handling the coordination of the company’s US PC manufacturing operation and took on different operational responsibilities.

Seven years later, Yamashita moved to France to work as Assistant General Manager before later returning to Japan to take control of global strategy. In 2005, Yamashita was on the move again as he was stationed in Germany to work as Assistant Senior Executive Vice President, before becoming General Manager in Singapore to grow Toshiba’s AUGUST 2018

Toshiba netbook nb520 Picture: lightfiction

B2B business. After successfully helping to build and shape Toshiba there, Yamashita switched to his current role in Europe as Senior Vice President.

Reflecting on his career to date, Yamashita maintains that his progression within the company through various roles has given him a broader understanding of the Toshiba brand. “It has enabled me within my present role to build a network both inside and outside the company, from manufacturing and engineering to product and business planning, admin, sales and marketing.

This network has proved invaluable to me both when setting up new solutions and in creating the business models to take these to market in multiple countries.�

AN ESTABLISHED TECHNOLOGY GIANT Although Yamashita is now a firm part of the Toshiba furniture, the Japanese brand began life under a different name 145 years ago. In 1873, the Ministry of Engineering in Japan commissioned Hisashige Tanaka to develop telegraphic equipment. The company has since gone through various iterations within the engineering space and moved with technology transformation, becoming nicknamed Toshiba, a title which was made official in 1978 and has stuck ever since. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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L E A D E R S H I P S T R AT E G Y

“ IN TODAY’S PROFESSIONAL CLIMATE, THREATS SURROUNDING IT SECURITY AND DATA PROTECTION ARE CONSTANTLY GROWING IN BOTH FREQUENCY AND MAGNITUDE” — 36

Maki Yamashita, Senior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH

Fast forward to 2018, and the multinational tech giant is renowned for its software and hardware offerings in the B2B and B2C sectors. Yamashita is especially proud of its latest security offering, TMZC. Having already introduced Toshiba Mobile Zero Client (TMZC) on its award-winning B2B notebook products, Toshiba understands the importance of ensuring security whilst using mobile devices. Yamashita is confident that TMZC eradicates any potential AUGUST 2018

37

problems that may arise. “With

uses Toshiba’s genuine in-house developed

TMZC, no data remains in the

Basic Input/Output System (BIOS), providing

machine once you’ve turned it

total security through its device. This solution

off. This headache is completely

can be customised to the Virtual Desktop

eliminated,” Yamashita explains.

Infrastructure (VDI) of the customers because

“TMZC uses a customer’s existing infrastructure and does

we have direct access to our developers.”

Toshiba aims to ensure that security stand-

not require any modification of

ards are maintained at all times, however,

their existing system – it is

Yamashita is continuously wary of the threats

extremely easy to implement.

surrounding IT security and data protection.

Another advantage is that TMZC

“In today’s professional climate, threats m i d d l e e a s t . b u s i n e s s c h i e f. c o m

L E A D E R S H I P S T R AT E G Y

surrounding IT security and data

company and employee data – as well as

protection are constantly grow-

the inadequacies of many IT systems in

ing in both frequency and

protecting against such attacks.”

magnitude; one only needs to think of the recent WannaCry ran-

SUCCESS IN THE MIDDLE EAST

somware cyberattack, which

Growing brands abroad and developing

spread across 150 countries

a localised service as an MNC doesn’t hap-

globally, and is estimated to have

pen overnight. Yamashita is well aware of the

cost the worldwide economy

challenges Toshiba faces when it comes to

approximately $7.9bn.

sustained success in the Middle East. “One

“Such an ambitious and far-

38

of the biggest challenges Toshiba has

reaching attack perfectly

encountered since Toshiba started operating

demonstrates the increased

in the region is the size of the territory. We

intelligence and guile of today’s

have found, during the recent GITEX

cyber criminals in their relent-

event, that awareness of the

less pursuit of valuable

Toshiba brand is high in the Mid-

“ SECURITY NEEDS TO BE THE NUMBER ONE PRIORITY TO SUCCESSFULLY EMBRACE THE BENEFITS OF MOBILITY WITHOUT FALLING VICTIM TO THE INCREASED THREAT OF CYBERCRIME” — Maki Yamashita, Senior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH

AUGUST 2018

dle East, higher even than in the Western

utors and dealers,” Yamashita

territories. However, reaching the end user

explains. “Supported by our

and getting ‘air-time’ with them works differ-

regional headquarters, Toshiba

ently in the Middle East.”

Gulf FZE, first established in

The importance of being adaptable

Dubai in 1997, this network pro-

and finding out what is successful in loca-

motes Toshiba's capabilities as

tions like the Middle East cannot be

a world-leading diversified manu-

underestimated. Toshiba has been a well-

facturer and marketer of

established force in the Middle East for

advanced electronic and electri-

a number of years and the company main-

cal products and systems.”

tains a keen interest in ensuring the brand continues to thrive in a competitive sector.

“Toshiba's presence in the Middle East dates back many years and has now grown to a region-wide network of Toshiba Group companies, distrib-

A FALSE SENSE OF SECURITY A 2016 PricewaterhouseCoopers (PwC) report into cybersecurity in the Middle East entitled A false sense of security? supported

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

39

L E A D E R S H I P S T R AT E G Y

much of Yamashita’s concerns. It was high-

its companies must take heed

lighted in the report that Middle East

and prioritise their online security.

companies do invest in security technology but are quite often not supported by people,

mobile and flexible working

processes and governance which conse-

practices, security needs to

quently creates a ‘false sense of security’.

be the number one priority to

The report detailed that as a result of cyber

successfully embrace the bene-

incidents like security breaches in 2017, com-

fits of mobility without falling

panies in the Middle East suffered larger

victim to the increased threat

losses than other regions. It found that 56%

of cybercrime.”

of recorded incidents resulted in losses to

40

“As organisations adopt more

But Toshiba, like all brands,

business greater than $500,000, compared to

can’t afford to rest on its past

33% globally. The report states that attacks

successes. In terms of the future,

ranged from actual theft of data, to co-ordi-

Yamashita has an idea of what

nated spam emails or phishing attempts.

direction his industry is heading

These figures are alarming and outline the

towards and how vital continued

serious problem that Middle Eastern compa-

success in the Middle East is.

nies have with ensuring their information is kept secure at all times.

“Toshiba will continue to focus on delivering its award-winning

As far as Toshiba is concerned, security

range of B2B notebook products

always comes first but Yamashita maintains

with particular focus on the thriv-

that digital transformation and continued

ing banking and finance sectors

changes to technology are inevitable and

in the Gulf region,” he explains.

should be embraced.

“Whether preparing for regula-

“Financial organisations, more than most,

tory change, protecting against

handle sensitive – and valuable – data, mak-

the ever-expanding cyber threat

ing the sector ripe for a focused attack. July's

landscape, or addressing trends

hack on Italy's largest bank, UniCredit, for

like mobile working, 2018 will

example, put the data of up to 400,000 cus-

be a year of digital transforma-

tomers at risk, not only proving the sector’s

tion and learning for many

susceptibility to cybercriminals, but also that

organisations.”

AUGUST 2018

41

“ COMPANIES MUST TAKE HEED AND PRIORITISE THEIR ONLINE SECURITY” — S enior Vice President, PC & Solutions EMEA, Toshiba Europe GmbH m i d d l e e a s t . b u s i n e s s c h i e f. c o m

VISIT OUR WEBSITE

R E A D T H E L AT E S T I S S U E

TECHNOLOGY

44

Mobile tech for the

underban WRITTEN BY

AUGUST 2018

OLIVIA MINNOCK

Juvo aims to offer financial inclusion for all by creating financial identities and credit history for those in underbanked communities. This has been made possible by the growth of mobile, as Business Chief found out

45

nked m i d d l e e a s t . b u s i n e s s c h i e f. c o m

TECHNOLOGY

I

n an increasingly digitalised world, a huge proportion of the global population still lacks access to proper banking facilities.

Without the benefit of plastic or mobile apps, building up a digital identity and credit history can be near impossible. “Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded,” explains Aristotle Socrates, Chief Data Officer. “We partner with mobile network operators to reach these billions of people – many of whom are in cashbased economies.”

Juvo combines consumer internet, predictive

46

algorithms and modern mechanics to implement a data-science based ‘Identity Scoring’ system to augment a credit score, which would otherwise be decided from the top down, but instead is made via pre or post mobile payments, i.e. from the bottom up. Essentially, Juvo allows people without a credit score to build up a credit history, reaching towards its goal to ‘empower the billions of unbanked people in the world to create financial identities and access financial services’.

The company’s Identity Scoring service uses a combination of data science, machine learning and mechanics to create identities for those who don’t have a credit history through prepaid mobile accounts, allowing users to build up an identity and use banking options they may not have had before. The company was founded in 2014 and AUGUST 2018

launched its service publicly in 2016, having since grown from 100mn to 500mn users.

The company now employs 70 people and has enabled over 400mn transactions to date, boasting 1mn active subscribers per day. Juvo operates across 25 countries in North and South America, Europe and Asia, working with partners that include Sprint, Telefonica and Deutsche Telekom.

“We give consumers the choice, effectively, of being a post-paid user vs a pre-paid user.

We save people trips to the top-up station, which saves them time. I think every human being in the world understands the value of time,” Socrates explains.

From astrophysics to fintech Socrates trained as a theoretical astrophysicist but is now becoming more of a technologist.

“My general approach to tackling quantitative problems remains strongly informed by my past life as an astrophysicist.” He moved further into the tech space in 2015 when he joined Juvo as Chief Data Scientist. “The field of data science was heating up, and it seemed like a promising place to explore and come up with interesting ideas. After speaking with founder Steve Polsky, I thought Juvo was the best idea I had ever heard, at least in Silicon Valley.” Socrates describes the move as a risk, since Juvo was then just a startup with 10 employees but adds that this was actually m i d d l e e a s t . b u s i n e s s c h i e f. c o m

47

TECHNOLOGY

a selling point. “I was driven by the idea itself, and the opportunity of being able to create something significant from scratch.”

It is clear the data scientist strongly believes in Juvo’s central mission to develop financial service access to the 3bn people in the world who are underbanked. “The only way to accelerate the placement of those people into a modern financial system is by building a credit or financial knowledge base atop of, and across, multiple 48

operators. And that’s effectively what we’re doing.”

Data Science in finance In his role as Chief Data Scientist,

having people with some form of scientific experi-

Socrates has a wide scope of

ence of training – from either academia or a tech

responsibilities. “The term ‘data

company – gives an additional boost in capacity

scientist’ is a bit funny since there’s

in various areas of work and ideation.”

no science without data,” he muses.

Socrates adds that while many companies use

“Data Science means different

data science to support other departments

things at different companies.”

through creating algorithms, Juvo is different. “At

However, Socrates is keenly aware

Juvo, our Data Science function is a lot broader,

that the importance of data scientist

which is understandable given our mission. In

is becoming increasing recognised

addition to our core function, we do some

by many businesses, particularly at

engineering, product management, partnership

a time of rapid digitisation. “Every-

management and even sales and business

one seems to be discovering that

development,” he explains.

AUGUST 2018

“ Juvo was founded with a big mission: to establish financial identities for the billions of people worldwide who are creditworthy, yet financially excluded” — Aristotle Socrates, Director of Data Science, Juvo

Mission possible?

the ability generate huge meaningful amounts of

In order to allow users to build up a

transaction data. However, they are limited in

financial identity via mobile, it has

their ability to act on it. This requires data science

been necessary to partner with

to play an organisational role that is relatively

some of the largest telecoms

expansive on the organisational spectrum.” Juvo

carriers in emerging markets. “Our

will further utilise these carriers to build on its

mission is to create a mechanism for

impressive number of subscribers for the future.

generating credit by establishing

“The path is, in my view, quite clear: integrate with

meaningful financial identities for

more mobile network providers!”

mobile phone users in the develop-

Juvo builds up its financial profiles by offering

ing world. That’s a big, difficult and

gradually larger loans. “It’s interesting to

broad problem. Our general line of

understand why mobile network operators don’t

attack is through carriers who have

do this in the same way we do – the simple m i d d l e e a s t . b u s i n e s s c h i e f. c o m

49

TECHNOLOGY

answer is risk,” Socrates explains. “We end up taking a tremendous amount of risk on the path of building a credit history for users, at scale. All mobile operators offer small emergency loans, which might cover a single phone call for example, but at Juvo we offer a whole month’s worth of service per loan. Our Data Team was compelled to take this risk to help fulfil the vision and mission of our company: to build meaningful credit.

“We really didn’t understand how radical our loan sizes were until well after we’d been offering them for many years,” Socrates admits. “We 50

figured out how to manage this risk after the fact. In the beginning, you’re just trying to make things work!”

Juvo’s goal for the future is to expand its service to help financial service providers.

“We want to create a financial platform that allows financial service providers to gain access to the transaction histories that we’re building on top of mobile network operators. As I see the problem, the reason the underbanked are underbanked is that in their locale, the data infrastructure required to connect transaction history to capital, is non-existent or seriously inadequate. Right now, we’re working towards constructing a platform that allows end-users and financial institutions to bridge that gap.”

AUGUST 2018

“ We save people trips to the top-up station, which saves them time.

I think every human being in the world understands the value of time” — Aristotle Socrates, Director of Data Science, Juvo

51

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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CITY FOCUS

BEIR City Focus

54

AUGUST 2018

BIO

RUT Business Chief gives every angle on the Lebanese capital of Beirut in this month’s City Focus EDITED BY

BEN MOUNCER

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

55

CITY FOCUS | BEIRUT

56

O

ne of the world’s oldest cities and a shining beacon on the eastern coast of the Mediterranean Sea, Beirut is both

the capital and economic hub of Lebanon.

As the nation’s largest city with a population of roughly 1.5mn inhabitants, the city has been ranked as a Beta World City by the Globalization and World Cities Research Network and serves as Lebanon’s chief seaport. The original downtown business district that was ravaged by decades-long civil war has been revitalised as a global destination for the financial industry and Middle Eastern tourism.

AUGUST 2018

57

THE ECONOMY OF BEIRUT

Home to the Beirut Stock

Beirut’s economy is primarily a

Exchange, the Union of Arab Banks

service economy, with the chief

and Union of Arab Stock Exchanges,

industries being banking and tour-

banking and finance is Beirut’s domi-

ism. It has become more diversified

nant industry sector. Due to the

in the years following the end of the

liberal foreign exchange system,

civil war, with the publishing, manu-

favorable interest rates, solid gold-

facturing, advertising, construction

backed currency, and banking

and professional services industries

secrecy laws that have attracted vast

also having a significant presence in

amounts of institutional investors, the

the city.

IMF estimates that Beirut’s banking m i d d l e e a s t . b u s i n e s s c h i e f. c o m

CITY FOCUS | BEIRUT

system with $152bn on its balance sheet is more than triple the local GDP of $43bn.

Beirut has held up as a Middle Eastern financial sector on account of the Lebanese bank-

Currency

Lebanese pound

ing system’s protection of foreign capital and earnings and the

More than

ability to freely exchange the

1 Million

local currency with virtually any foreign alternative. Lebanon’s

Population

colossal foreign reserves – with the central bank able to cover 58

most of the Lebanese currency in the market - can prevent or mitigate financial crises easily.

Dubbed “Paris of the Middle

Nearest airport

9 km Beirut–Rafic Hariri International Airport

East” prior to the Lebanese Civil War, Beirut was a popular tourist destination for visitors from Arab

Europe and the Americas as well

League nations. It regained its

as the Arab League.

notability as a hotspot for

Business tourism serves as a

affluent tourists in the mid-2000s

backbone of Beirut’s economy,

with the second-highest tourist

but medical tourism has been

spending levels exceeding

gaining traction. This is large part

anywhere in the Middle East

due to the world-class hotels and

and North Africa, totaling $6.5bn.

medical centres, plus its proximity

Millions of visitors mainly include

to other Arab nations; medical

returning expats but the city has

tourism has been growing steadily

gained millions of visitors from

since 2009 at about 30% per year.

AUGUST 2018

59 N O TA B L E C O M PA N I E S

Banque du Liban Banque du Liban is Lebanon's central bank and os headquartered in Beirut. It plays a major role in the local economy, both as a safeguard of economic stability and as an employer, with several thousand workers. Banque du Liban is responsible for issuing the Lebanese Pound and maintaining oversight and regulation of the financial markets and entire banking sector.

In recent years, Banque du Liban has adopted an ambitious policy for investing in startups to help position Beirut as a major tech hub of the Middle East. They are encouraging commercial banks to invest in tech startups by guaranteeing up to 75% of the capital investments meeting certain criteria. Banks must invest in at least 10 different startups in order to receive the full suite of benefits that Banque du Liban's guarantee provides.

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

CITY FOCUS | BEIRUT

The city has gained millions of visitors from Europe and the Americas as well as the Arab League

60

AUGUST 2018

N O TA B L E C O M PA N I E S

Byblos Bank Byblos Bank is Lebanon's third-largest bank and has had the highest Tier 1 capital to assets ratio among its competitors for five years running. It operates 86 branches in Lebanon with over 2,500 employees and its headquarters in Beirut employ a significant number of locals.

Eastline Digital Eastline Digital is one of the first companies in the MENA region to provide a full range of digital marketing and SEO services. The company was founded in 2006 as internet usage began to grow in the Middle East and began serving both Middle Eastern and global brands, developing Sweepz as a result.

Sweepz is currently the only web platform structured for social media campaigns that supports Arabic. Eastline Digital has won two Webby awards for Best Green Site and the People's Voice Award, as well as the Endeavor Advocate Award. With just 11 employees, the lean startup strives to be the leading digital marketing agency in the Middle East. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

61

CITY FOCUS | BEIRUT

N O TA B L E C O M PA N I E S

Berytech Berytech is a business development centre, incubator and venture fund based in Beirut with $51mn from various banks in Lebanon and Banque du Libon's initiative. The Berytech Fund invests in small and mediumsized Lebanon-based startups in the knowledge economy that are in the acceleration phase.

62

Leap Ventures Funded by Banque du Liban’s guarantee, Leap Ventures is a growth-stage venture fund based in both Beirut and Dubai.

Focusing on tech startups that have achieved Series B funding, Leap invests in companies with established market presence.

AUGUST 2018

N O TA B L E C O M PA N I E S

AZADEA Group The Azadea Group owns and operates more than 50 different franchises across the MENA region. The Beirut-based company employs over 11,000 people in 13 countries and 600 stores. Azadea's flagship store is still in Beirut and the group remains a major local employer with a portfolio of brands that includes Old Navy, Stradivarius and Virgin Megastore.

63

Azadea's flagship store is still in Beirut and the group remains a major local employer m i d d l e e a s t . b u s i n e s s c h i e f. c o m

17-18 September 2018 Abu Dhabi, UAE

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Digital transformation presents projected to generate up to $16 billion in extra revenue annually for businesses in the middle east region.

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Umar Saleem, Chief Transformation Officer, Al Jaber Group

Graham Colclough, Partner, UrbanDNA UK

Anshul Srivastav, Chief Information Officer & Digital Officer, Union Insurance

Delel Chaabouni, CIO - Middle East & Africa, PepsiCo

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T O P 10

66

AUGUST 2018

Top 10

CEOs in the

Middle East

The Middle East is a region of great wealth and power. The top CEOs within the area demonstrate its diversity as countries represented spring from all across the globe E DI T E D BY

B E N M OU NCE R

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

67

T O P 10

09

Samer Abu Ltaif www.microsoft.com

Microsoft appointed Samer Abu Ltaif as its CEO for the Middle East and Africa. His duties include supporting initiatives aimed at enterprises, governments, small business, developers and medium-sized. Based in the United States, Microsoft is a multinational technology company that manufacturers and develops software, consumer electric, personal comput68

10

Takreem El-Tohamy www.ibm.com

In 2005, Takreem El-Tohamy became the CEO of IBM Middle East and Africa. International Business Machines – perhaps better known by its acronym, IBM -- is a technology company based in the United States with a presence throughout the world.

In 2017, IBM posted revenue of $79.1bn. A manufacturer of software, middleware and software, IBM also offers consulting and hosting services.

AUGUST 2018

ers and more. In 2017, Microsoft posted revenues of nearly $90bn.

07

Mohamed Samir https://us.pg.com

Mohamed Samir is the CEO of Procter & Gamble’s India, Middle East and Africa (IMEA) region, a role he’s held since July 2014. Procter & Gamble is a consumer goods corporation with a global reach that is headquartered in the United States. Its expansive portfolio includes foods, personal care products, cleaning agents and many more. As of 2017, Procter & Gamble reported revenues of $65bn.

08

Mario Spangenberg www.gm.com

Mario Spangenberg was selected for the position of CEO for General Motors (GM) Africa and the Middle East. This is a post that he began on January 1, 2013. A car manufacturer based in the United States, GM offers consumers a variety of different vehicle brands including Chevrolet, Lincoln and Cadillac. The company announced revenues of $145.5bn as of 2017. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

69

T O P 10

05

Sjoerd Leenart www.jpmorgan.com

JP Morgan Chase appointed Sjoerd Leenart as the company’s CEO for the Middle East, Turkey and Africa regions. JP Morgan Chase is the largest bank in its home country of the United States and is the second most valuable bank in terms of market capitalization. As of 2017, JP Morgan

70

06

Sanjeev Chadha

Chase posted revenues of $99.6bn.

It is divided into a number of divisions including investment banking, private wealth management, securities ser-

www.pepsico.com

vices, private banking, treasuries,

Since September 2013, Sanjeev

asset management and others.

Chadha has been PepsiCo’s CEO for Asia, the Middle East and Africa (AMEA). Headquartered in New York, United States, PepsiCo was formed in 1965 as a merger of Pepsi-Cola and Frito-Lay. In addition to snack foods and beverages, PepsiCo also offers juices, sports drinks, breakfast foods and a myriad of other products. This multinational company distributes its products across more than 200 countries and posted revenues of $43.3bn in 2017.

AUGUST 2018

03

Yves Manghardt www.nestle.com

Yves Manghardt has been the Chairman and CEO of Nestlé Middle East since October 2009. Headquartered in Switzerland, Nestlé has been the world’s largest food company, based on revenue, since 2014. In 2017, the company revealed that it had revenues of nearly $91bn. Selling baby food, coffee, pet foods, breakfast

04

Dietmar Siersdorfer

cereals, ice cream and a myriad of other foods, Nestlé has numerous popular brands under its namesake.

www.siemens.com

In December 2013, Dietmar Siersdorfer became the CEO of Siemens Middle East and United Arab Emirates divisions. A German company headquartered in Munich and Berlin, Siemens is Europe’s largest industrial manufacturing company.

Serving the entire globe, Siemens manufacturers and sells products such as medical technology, fire alarms, power generation technology and more. In 2017, the company reported a revenue of $110bn. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

71

T O P 10

72

02

Georges Elhedery www.hsbc.com

Since July 26, 2016, Georges Elhedery has been the CEO of HSBC Bank’s Middle East and North Africa (MENA) region.

Based in London, England, HSBC Bank -- which employs more than 228,600 people worldwide -- reported revenues of $51.4bn in 2017. In addition to corporate, retail personal and investment banking services, HSBC Bank also provides mortgage loans, credit cards, wealth management and other services.

AUGUST 2018

01

Nabil Habayeb www.ge.com

Nabil Habayeb is the CEO for

73

United States-based GE’s interests in the Middle East. With a focus on lighting, oil, aviation, gas, healthcare, additive manufacturing, finance, power, transportation, digital and renewable energy, Nabil Habayeb is president and CEO of the company’s Middle East, North Africa and Turkey (MENAT) region. The company, which employs about 313,000 around the world, posted revenues of $122bn in 2017.

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

December Dubai, United A ABOUT HITEC Hospitality Industry Technology Exposition and Conference (HITEC®) is the world’s largest hospitality technology exposition and conference brand. HITEC Dubai 2018, co-produced by Hospitality Financial and Technology Professionals (HFTP®) and Naseba, will feature 30+ speakers, 500+ hospitality stakeholders and 50+ solution and service providers. The show will give Middle East buyers currently worth over USD 75 billion, access to global top solution providers in hospitality market, through a top-notch education program planned by the expert HITEC Dubai Advisory Council, as well as an exhibition debuting the latest in hospitality technology, and a summit with one-to-one business meetings.

5

Ho Stak

www.hitec.org/dubai Amir Abdin | Marketing Manager | amirabdin@naseba.com | +97144557920

r 5-6, 2018 Arab Emirates

500+

ospitality keholders

40+

30+

Solution and service providers

Industry expert Speakers

76

AUGUST 2018

S U P P LY C H A I N

Staying ahead through digitisation WRIT TEN BY

CATHERINE S TURM AN PRODUCED BY

HE Y K EL OUNI

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

77

EASA SALEH AL GURG GROUP LLC

Key executives at the Easa Saleh Al Gurg Group LLC discuss how introducing a world-class supply chain has made the business a leader for the future

E

stablished alongside the evolution of Dubai, the Easa Saleh Al Gurg Group LLC (ESAG) has grown organically to become one of the leading business houses in the UAE. Now

commercialised into various necessities, it has tapped into key areas of progression in the Mid-

78

dle East, such as infrastructure and services, manufacturing and retail, housing six joint venture partners across a number of divisions.

Representing 27 companies, the diverse business encompasses a consolidated structure in the management of its finances, legislation, corporate governance and IT operations. While businesses are able to rule independently alongside its robust framework, as well as developing their own business strategies, the business has sought to consolidate a number of areas, such as its purchasing, finances and legislative operations, believing that its true strength lies in numbers.

Using innovative, sustainable and progressive practices, ESAG aims to remain at the forefront of changing market and industry trends, ensurAUGUST 2018

S U P P LY C H A I N

79

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

EASA SALEH AL GURG GROUP LLC

ing that its product and service offerings

ing ways to reduce costs, but drive higher

meet the needs of its customers and are

quality across its operations.

aligned with Dubai’s Smart City vision.

To unlock further business growth,

“Five years ago, supply chain was not managed systematically at ESAG. Our

ESAG decided to undergo a deep dive

Chief Financial Officer, Werner Flaig,

into its supply chain functions in order to

introduced the concept of supply chain to

drive increased value across the business

the firm. When I came on board, the first

and remain competitive against new play-

priority was to understand different busi-

ers in the market.

nesses and add value into these

A family owned business, Abdulla Al

diversified units which would make us

Gurg has sought to build a business in

unique,” explains Irfan Kapadia, Group

alignment with Dubai’s 2020 vision, with

Head of Supply Chain.

the aim to make ESAG’s operations increasingly efficient, with a focus on find-

With 97 individuals situated across the supply chain, carrying out procure-

Your global transport and logistics partner www.ae.dsv.com | info@ae.dsv.com

With a strong presence and understanding in the Middle East - our services comprise of end to end solutions that bring value to your supply chain.

We deliver your cargo safely, securely and on time anywhere in the world by air, sea, road and rail.

Tel : +971 4 4408 100 Fax : +971 4 4408 110

S U P P LY C H A I N

ment, logistics, demand planning,

Strength in consolidation

inventory planning and warehouse

In order to remain competitive, ESAG

management operations, ESAG’s

has adopted strategic sourcing as part of

diverse supply chain structure also

its cost structure and has formalised the

encompasses three individuals at Cor-

way it seeks to gather information. This is

porate Office undertaking its supply

then used to consolidate its require-

chain planning and governance activi-

ments, providing economies of scale

ties, as well as an operational team

when negotiating with suppliers.

under Kapadia’s leadership.

“Companies are increasingly using

“We don’t just focus on local vendors or those based in one part of the world but

their supply chain to compete and gain

try to have multiple sourcing avenues

market share,” adds Kapadia. “Supply

globally. If I have two suppliers, we try

chain excellence is more widely

to have another two from the farthest

accepted, and we are no exception to it.”

regions so it does not affect the supply 81

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

EASA SALEH AL GURG GROUP LLC

BIO

82

Abdulla Fareed Al Gurg Group CEO, Easa Saleh Al Gurg Group LLC Abdulla Al Gurg is the Group Chief Executive Officer of Easa Saleh Al Gurg Group LLC, a multidivisional conglomerate with 27 companies.

The Group’s diverse product and business interests predominantly include retail, building and construction, industrial, real estate and joint ventures.

Under his tenure the Group has expanded its footprint in the GCC region; in the Sultanate of Oman, Iraq and the Kingdom of Saudi Arabia. Abdulla has also been instrumental in leading the activation of a Treasury Management System, helping establish the first in-house Bank in the GCC region.

He is also an active Board member within the Group’s joint ventures, namely Al Gurg Fosroc LLC, Siemens LLC, Al Gurg Smollan and Al Gurg Unilever, Akzo Nobel Decorative Paints LLC and Siemens Healthineers. Abdulla is also on

AUGUST 2018

the Board of Directors for Drake & Scull International.

Abdulla‘s leadership has enabled the Group focus on encouraging a learning environment through a dedicated Learning & Development Centre. His views on entrepreneurship and family businesses are constantly sought out in leadership forums.

Abdulla is a member of the Board of Directors of the Easa Saleh Al Gurg Charity Foundation. In recognition of the Foundation‘s charitable efforts, he was the Lloyds TSB Torchbearer for the London 2012 Olympic Torch Relay.

S U P P LY C H A I N

83

chain. The same goes for our local

procurement activities. We know the

suppliers,” explains Kapadia.

shortest logistics time window and can

“We have streamlined a lot of our pur-

optimise cost. This gives us an advantage

chasing where we have received over

for the future to be competitive in markets

30% savings in many of our companies

which are rapidly changing in this region.”

because of our consolidation. This all

Additionally, with a number of suppliers

adds up into our supply chain savings,”

utilising different systems, ESAG has had

observes Abdulla Al Gurg, Group Chief

to become increasingly agile.

Executive Officer.

“This has provided a number of advantages,” adds Flaig.

“Automatically, we manage compliance and speed in the supply chain and our

“There are certain parameters which we set for supply chain, which enables us to build our strategy and adopt more towards external parties. It’s been a learning experience for us” says Al Gurg. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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BIO

Irfan Gafur Kapadia Group Head – Supply Chain Easa Saleh Al Gurg Group LLC Irfan is a procurement & supply chain strategist with over 15 years of global experience in diversified industries ranging from Manufacturing, Trading, FMCG & Retail offering senior level expertise in strategic sourcing, supply chain transformation, supplier relationships and change management

AUGUST 2018

with companies based in USA and UAE. He has driven processes, developed systems and established centralized supply chain & procurement departments for the companies he has been associated with.

Currently working as Group Head of Supply Chain in ESAG, he has transformed procurement department from a clerical function to become the integral part of execu-

S U P P LY C H A I N

The use of data

Taking a measured and deliberate

In the age of digitally savvy and

approach to investing in its transfor-

empowered customers, ESAG are

mation journey, the company has

known as pioneers in adopting new

assessed numerous factors, such

technologies, exploring opportuni-

as its existing resources, readiness

ties to enhance interactions with its

and how enhancing key operations

customers across all touch points.

and processes contribute to its

The business became the second company in the region to adopt SAP’s

overall business objectives.

“We were one of the early adop-

full suite back in 2006 and it was the

ters of a Treasury Management

first in the UAE to migrate on SAP ECC

System, the first in-house virtual

on HANA technology. The company

bank in the region, as well as new an

was also amongst the few to imple-

ERP system, SAP’s Business

ment ReFX (a Real Estate Module of

Objects and more. We have also

SAP), Open Text and VIM for docu-

invested in a new customer rela-

ment filing and invoice management.

tionship management (CRM)

tive management designing business strategies and adding value into business processes across the group. He is currently managing supply chain operations with planning of procurement, international freight forwarding, transportation, warehousing, inventory control and distribution for effective functioning of various business units of ESAG. Irfan is very passionate about achieving excellence in supply chain

and has featured as key note speaker at various procurement and supply chain forums and continuously works to enhance the reputation of procurement and supply chain functions.

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EASA SALEH AL GURG GROUP LLC

system and a point of sales (POS) system,” notes Al Gurg.

“We brought SAP Ariba on board last year and have deployed its upstream module to streamline our supplier registration, sourcing and contracts to automate our Procureto-Pay processes,” adds Kapadia.

“We are looking into data analytics in demand planning and digitise our in-bound and last mile logistics.

We work to make sure that whatever technologies are available, we assess them and see how it will ben86

efit the business, grow our top line, save cost and improve efficiency.

Working to capture all moments

“We have really streamlined a lot of our purchasing where we have received over 30% savings in many of our companies because of our consolidation.

This all adds up into our supply chain savings” — Abdulla Al Gurg, Group Chief Executive Officer

through the use of technology, such as track and trace, ESAG has appointed a number of individuals with significant expertise in utilising data and analytics. Becoming more

“To ready ourselves for the

scientific in its approach, the busi-

future, we are investing in technol-

ness will gain a greater

ogy for the benefit of our diverse

understanding of the information

portfolio of businesses, including

received, drawing on lessons from

process automation, mobility, cus-

advanced markets, and combining

tomer service, e-commerce and

this with its understanding of cultural

securing our data infrastructure, as

nuances that contribute to the cus-

well as our procurement and logis-

tomer experience within the UAE.

tics processes,” Al Gurg adds.

AUGUST 2018

S U P P LY C H A I N

Change management Despite its ongoing transformation, it has been imperative for ESAG to undergo an essential change management process. By fully digitising its procure-to-pay processes, overhauling its supplier relationships and promoting collaboration across its sourcing, invoice submission and payments, Flaig explains that it has presented the biggest challenge.

“We can invest millions into software and give a complete landscape of technology to our staff and to our businesses, whether it’s a fully automated treasury management or ERP system or even the adoption of SAP Ariba software. Nevertheless, if people don’t get comfortable with the technological advantages we have, we can’t bring our horsepower to the ground.

“Years ago, it was clear that companies didn’t want to invest that much in training their employees. This is the biggest challenge in the entire region, but the more awareness we create in

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EASA SALEH AL GURG GROUP LLC

our team, the competitive advantage we will have in the future.

“We have to invest in our people in order to enable them to change as fast as the markets are continually changing.”

With this in mind, the business has placed significant investment in developing a robust team who have a deep understanding of the company and its long-term goals.

Investing in the development of its own training centre, ESAG delivers over 780 hours of training to its 88

3,000 employees in a number of areas, from supply chain, governance, and legislation, to soft skills, such as managing conflict. The company also delivers a number of women’s empowerment initiatives.

“We also cover SAP software utilisation and VAT training, which

and of course, our internal policies

was introduced this year. I also

and processes” observes Kapadia.

manage supply chain-related

“We have heavily invested into supply

training, where every quarter we

chain digitisation, so we have ongoing

gather our supply chain commu-

training which is always happening,

nity and teach them the principles

making sure procurement executives

of procurement, what’s happening

know how to create purchase exercita-

in the supply chain industry, how

tions, how to create sourcing requests

the logistic system works, our pro-

and how to collect it with suppliers. All

cess flows and how to negotiate,

of this happens at the training centre.”

AUGUST 2018

S U P P LY C H A I N

ESAG Showroom

89

Long-standing reputation A key figure in the UAE, ESAG is keen to lead by example and places particular emphasis on giving back to local communities in a number of health, education and labour initiatives.

Regularly donating clothes for families who are supported by the Red Crescent Authority in UAE, the business also supports local hospitals through blood donation. “For our employees, we also provided complimentary health tests to commemorate International Diabetes Day, offere breast cancer awareness programmes as well as wellness programmes, such as free yoga classes,� explains Flaig. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

EASA SALEH AL GURG GROUP LLC

90

“From a supply chain perspective, we

they offer different discounts for our

are also heavily involved. For example, we

employees. Any external activities that we

recently did a healthcare check-up for all

do, we drive partnerships with our suppli-

of our 800-plus labour employees, so the

ers. We give them a say in the process. It’s

supply chain team brought our water sup-

not an individual task, but one where the

plier on board, who came and distributed

supply chain comes together.”

free samples of water and juices for the labour staff,” adds Kapadia.

“Similarly, we have collaborated with different partners in the market, where AUGUST 2018

With a long-standing reputation, ESAG remains proud to have a number of successful business relationships, many which have spanned over 50 years, such

S U P P LY C H A I N

91

“We have to invest in our people in order to enable them to adapt to continually changing markets� — Werner Flaig, Group Chief Financial Officer

as British American Tobacco, Siemens and Dunlop, amongst others.

Its values begin with its staff and are extended to its vendors and clients.

Developing an organisational structure, combined with technology, the business is now able to successfully discuss, negotiate, and work with both international and local business partners effectively, leading to continual business growth. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

EASA SALEH AL GURG GROUP LLC

Iftar event at a mosque built and managed by ESAG “This holistic approach of being ahead of the curve in the market puts us above the competition, which will make us survive as a business and will continue to enable us to drive a long-term, sustainable, strong performance,” says Flaig.

“We remain unwavering in our commitment to conduct all of our business activities with integrity and excellence, and ensuring the trust of our shareholders, customers, employees and business partners,” concludes Kapadia.

“We will continue to leverage our expertise to achieve sustainable growth in our identified areas of strength and remain agile and responsive to both the market and our customers’ 92

requirements, exploring opportunities for growth into new sectors through a combination BIO

Werner Flaig Chief Financial Officer, Easa Saleh Al Gurg Group Werner Flaig joined Easa Saleh Al Gurg Group LLC in 2011 as Group Chief Financial Officer with responsibility for all financial operations and long term financial strategies of 28 operating companies active in retail, real estate,

AUGUST 2018

industry, trading, banking and investment finance in the Lower Gulf Region and the UK. He came to the United Arab Emirates in 2009 as Chief Financial Officer of Siemens LLC, UAE, responsible for the financial operations of all Siemens entities in the Lower Gulf Region. Werner started his career in 1991 with Siemens AG, Corporate Finance, later Siemens Financial Services, and now possesses 25 years of executive level experience leading structured finance operations.

S U P P LY C H A I N

93 of deepening relations with existing

Werner has had P&L responsibilities as General Manager in operational businesses for large infrastructure projects in SouthEast Asia and China. His experience also includes leading concession companies as well as structuring and arranging international debt financing.

Werner has a university degree in business administration from the University of Erlangen-Nuremberg, Germany, and studied also at Duke University, North Carolina, USA.

partners and further diversifying our current portfolio of businesses to tap into new customer segments,� concludes Kapadia. “Carrying forward the legacy of our founder, our preparedness and foresight has created processes and policies that guarantee the longevity of the business. A testament to that is being a successful family run Emirati company with three generations working side by side.�

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TECHNOLOGY

Embracing future growth through digitsation CHANGING REGULATIONS ARE RESHAPING THE TRADITIONAL INSURANCE MARKET. RENOWNED FOR ITS EXCEPTIONAL SERVICE DELIVERY AND CUSTOMER FOCUS, UNION INSURANCE HAS DIGITISED ITS SERVICES, FULLY CEMENTING ITS POSITION IN THE GCC WRITTEN BY

CATHERINE STURMAN PRODUCED BY

CRAIG DANIELS

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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UNION INSURANCE

T

he United Arab Emirates (UAE) is moving away from its dependence on oil and is seeking to diversify its

economy within healthcare, transport and logistics, energy, tourism, and of course, its insurance services.

Covering all industries, the GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021, bolstering the economic growth of the region and its citizens. New digital tools and complex regulations will seek to further drive the growth of SMEs and large corporations, enabling businesses to cater towards its evolving client demand.

96

Licensed by the UAE Insurance Authority and listed on the Abu Dhabi Securities Exchange, Union Insurance has sought to transform the customer experience. Appointed over two years ago, Anshul Srivastav, Chief Information Officer and Digital Officer, explains that the industry’s focus on the customer has been significantly isolated from the customer experience in recent years.

“The insurance sector definitely takes a backseat in terms of customer experience,” he says.

“My role is someone who is a technology transformation leader, where I have completely transformed the way Union Insurance has operated on the IT side with my team, looking at various aspects including the AUGUST 2018

TECHNOLOGY

“ CLOUD HAS ENABLED US TO PROVIDE ON-DEMAND TYPE SERVICES. WE’VE CONVERTED IT INFRASTRUCTURE AS A UTILITY, WHERE SIMILAR TO WATER OR ELECTRICITY, CUSTOMERS PAY FOR WHAT THEY CONSUME” — Anshul Srivastav, Chief Information Officer and Digital Officer

97

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

Enabling a smarter today Etisalat Digital is a business unit of Etisalat helping to drive digital transformation by enabling enterprises and governments to become smarter through the use of the latest technologies. It’s no longer the big beating the small, but the fast beating the slow and the smart taking the lead.

For more information, visit etisalatdigital.ae

TECHNOLOGY

Click to watch: Union Insurance provides more than just protection 99

current inventory and future inven-

FACT

tory of things that need to be done.

The GCC insurance market is projected to rise at a CAGR of 10.9%, from $26.2bn in 2016 to $44bn in 2021

“The first role was to change the way things were working in the region and to look at how the market is. Working closely with businesses, in terms of how things are and how things are going to be

end-to-end experience of the cus-

done moving forward.”

tomer, from buying a particular product and ensuring products

ENHANCING THE

are serviced, the company has

CUSTOMER EXPERIENCE

revamped its online presence and

By convincing Union Insurance’s

branding, leading to the eradica-

management team to explore the

tion of its paper-led processes. m i d d l e e a s t . b u s i n e s s c h i e f. c o m

UNION INSURANCE

“Through our mobile app,

“We have also automated a lot of processes

we started enabling customers to

through implementing robotic process automa-

help themselves. We then decided

tion (RPA). The number of steps taken to complete

to go paperless,” explains Srivastav.

a process in terms of selling and soliciting should

“With all banking services and financial, products are

be reduced. Additionally, we have berisat blockchain, particularly on the documents side.”

paper. Their promises are on

Union Insurance is becoming increasingly

paper, whether it’s currency,

proactive as a result of its digital transformation

a policy or ATM receipts. We now

and has sought to garner a deeper understand-

scan information and our policies

ing of the needs of its customers, placing them

are saved electronically.

firmly at the centre.

100

AUGUST 2018

TECHNOLOGY

“Most customers are not very clear on what

best services and products, miti-

they want and what they’re looking for. When

gate potential risks and protect

reaching out to the customer, whether it’s for a

their coverage.

product or a service, we have to create a journey for them. Customer engagement is very impor-

DIGITALLY ENABLED

tant to alter the entire lifecycle journey,”

Engaging with customers on a

observes Srivastav.

variety of digital platforms, such as

By engaging with customers, Union Insur-

mobile and online, customers are

ance has also sought to gain further

now able to purchase life, health,

understanding of customer age, demographic,

and motor insurance at their own

nationality and preferences, in order to offer the

convenience. Bolstered by the

101

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

UNION INSURANCE

introduction of artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors by bringing new solutions to the market at a rapid pace.

However, such changes would not have been possible without the

“ ON-DEMAND INSURANCE IS GOING TO BE GAME CHANGER, ESPECIALLY IN LIFE, HEALTH AND P&C INSURANCE” — Anshul Srivastav, Chief Information Officer and Digital Officer

adoption of cloud technology and the business’s focus on data virtualisation. Srivastav explains that this has been a major game changer.

“Cloud has enabled us to provide 102

on-demand type services. We now don’t invest in IT prefecture but pay per use, similar to on-demand. It’s like the ‘Uberisation’ of insurance.

We’ve converted IT infrastructure as a utility, where similar to water or electricity, customers pay for what they consume.

“It has helped us bring products

strengthen Union Insurance’s security services,

to market quicker. When we come

the company has also partnered with Amazon

up with a new product or service,

Web Services and Microsoft, who jointly man-

we don’t have to wait for eight to 12

age its cybersecurity operations 24/7.

weeks to get our IT prefecture

Developing tailored products and services,

commissioning set up. It has now

whilst looking at the commercial impact

been reduced to a couple of hours.”

such decisions will have on the business,

Whilst the adoption of cloud technologies has sought to AUGUST 2018

Union Insurances’ investment in data analytics cannot be underestimated.

TECHNOLOGY

103

“People don’t buy insurance, it is sold. People

insurance, travel insurance and

preferably go for mandatory insurances. In the

shop insurance, everything under

UAE, motor and health insurance is mandatory,”

the sun can be insured.”

explains Srivastav.

“When looking at other parts of insurance, we

LONG-TERM EVOLUTION

need to have the data to understand what both

As the insurance industry

corporate and individual customers are looking

continues to mature, competition

at and what products are helpful to them to pro-

amongst providers remains fierce.

tect themselves. From fire insurance, home

Technology giants such as Google m i d d l e e a s t . b u s i n e s s c h i e f. c o m

UNION INSURANCE

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AUGUST 2018

TECHNOLOGY

FACT

Introducing artificial intelligence technologies, such as image and voice recognition, Union Insurance has gained an edge over competitors

and Amazon have also sought to expand their diverse portfolios and tap into countries with denser populations and long-term potential.

As a result of new laws coming into force in the GCC, all individuals will be required to purchase compulsory medical insurance.

Consequently, the GCC insurance industry is set to rise in the next five years – medical insurance presently accounts for approximately 40% of the GCC insurance market.

The adoption of life and non-life insurance products also remains on the rise due to the growth of lifestyle diseases and a changing demographic.

“Technology players are entering insurance. They will not come as typical, traditional insurance companies, but will offer real-time insurance where they will use the power of data,” notes Srivastav.

“Google can see where you are and where you are calling from. In real-time, they can offer certain insurances to prevent the risk of a call drop, for example. On-demand insurance is going to be a game changer, especially in life, health and m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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UNION INSURANCE

“ TECHNOLOGY PLAYERS ARE ENTERING INSURANCE, ESPECIALLY ON THE HEALTH SIDE. THEY WILL NOT COME AS TYPICAL, TRADITIONAL INSURANCE COMPANIES, BUT WILL OFFER REAL-TIME INSURANCE WHERE THEY WILL USE THE POWER OF DATA” 106

— Anshul Srivastav, Chief Information Officer and Digital Officer

property and casualty (P&C) insurance.

“Also, paying per mile insurance,

“China has also become a significant area of long-term potential. Zhong An,

where you pay insurance on the amount

who started their insurance journey

that you drive, is already in Europe and

in 2013 have recently had an IPO and

gradually coming into the other parts of

are a pure digital player. They have

the world. A lot of driving behaviours are

630 products in China and have sold

captured and bases the rating of insur-

over 8bn policies. If I look at the popu-

ance offered.”

lation of China, which is one and a half

Globally, countries with ageing

billion, every person is purchasing four

populations and an evolving demo-

products, through high-level calcula-

graphic, such as China, will be on the

tion,” Srivastav says.

receiving end of an insurance boom.

AUGUST 2018

“They are clearly doing what others

TECHNOLOGY

107

are not doing and are growing rapidly.

evolving market, the company will

Their use of data, wherein they engage

remain a key player within the Dubai

with the customer, they understand

insurance market.

their real time needs, and they offer the

“With our retail-focused products,

protection or cover of what a customer

we’ve done some substantial work in

is looking for, is essential.”

terms of using technology to reach out

Union Insurance has taken a grand

to existing and potential customers

step to reach its direct customers and

through our digital channels,” Srivastav

its partners to ensure that it delivers the

concludes.

best products and services for custom-

“We’re seeing a good traction and

ers in real-time. Predicting the

conversion coming in and it’s adding up

behaviours of its customers, with an

to our revenues in great detail.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m

108

THE MIDDLE EAST’S DATA MARKETING POWERHOUSE WRIT TEN BY

DA LE BENTON PRODUCED BY

CR AIG DANIEL S

AUGUST 2018

TECHNOLOGY

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

GROUP M

Through [m]PLATFORM, GroupM looks to redefine the digital marketplace of the Middle East

A

As the world’s largest media investment group, responsible for one in three advertisements

This is where Siddons comes to the fore. Working alongside Daniel Vaczi,

globally, a powerful system is required to be

[m]PLATFORM Head of Data & Technology,

able to store and ultimately leverage the

the two are tasked with delivering cutting

mountains of data available. For GroupM,

edge data and technology solutions to

this solution is [m]PLATFORM.

GroupM agencies and their clients.

“[m]PLATFORM is GroupM’s solution for 110

throughout the MENA region.

“The UK, for example, is a challenging

shaping data and technology around each

market to operate in, given the number

advertiser’s needs,” said Marcus Siddons,

of players live and scaled,” says Siddons.

Managing Director, GroupM MENA. “We

“I feel both Dan and I are privileged in the

get unique data from across the media

sense that we can apply our experience

landscape and various consumer touch-

of such developed markets to the MENA

points to help clients best use technology

region, and through our agency back-

and deliver the right message to the right

grounds remain close to what business

consumer at the right time.”

challenges clients need solving.”

“It allows us join up all important insights

“That’s very important,” adds Vaczi. “It’s

to execution, but what it really boils down

often easy when working in a technology

to is understanding individual users and

role or company to be disconnected from

having a complete view of a single user. For

the real business challenges that clients

our region, that’s both unique and challeng-

and their agencies are under. We under-

ing in equal parts.”

stand both agencies and clients as we were

GroupM has operations all over the world,

in the same shoes in our previous roles.

including Germany, Korea, Japan and the

Using this experience, we can tailor

United States, but the company is currently

solutions that directly addresses these

undergoing an aggressive expansion plan

business challenges.’’

AUGUST 2018

S U P P LY C H A I N

“ WE ARE LOOKING TO INNOVATE EVERY WEEK SO THAT WE ARE OPERATING IN A VERY DIFFERENT PLACE THAN WE WERE LAST WEEK AND WILL BE IN A VERY DIFFERENT PLACE NEXT WEEK”

111

Marcus Siddons, Managing Director, GroupM Digital MENA

m i d d l e e a s t . b u s i n e s s c h i e f. c o m

GROUP M

Across its MENA footprint, GroupM has a

Technology of course is an ever-chang-

presence in over 20 countries from

ing beast and a company like GroupM

Morocco right through to Oman. As an

has to not only recognise this evolving

organisation that defines itself through the

landscape but try and remain ahead

way it works closely with its client base,

of the game in order to continue to

operating across the region presents

deliver for its clients.

unique challenges from location to location,

This in itself creates its own unique

and as a company with technology at its

challenge; does a company look to innovate

heart this challenge is only exacerbated.

and implement technology just to stay in the

“At GroupM we are trying to tackle a huge challenge with [m]PLATFORM, not just siloed understanding of our customers but

game? Or does it not take the risk and fall behind the rest of the market?

Siddons agrees as much, believing that

ensuring we can execute against this

the conversation surrounding technology

seamlessly,” says Vaczi.

creates a lot of “noise” and that the key

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S U P P LY C H A I N

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m i d d l e e a s t . b u s i n e s s c h i e f. c o m

GROUP M

element is to cut through this noise and focus on what is actually going to deliver and provide true value to clients.

This, he confesses, is not an easy thing to do, particularly as clients also continue to evolve.

“In essence, working with a client is about helping them drive growth and profitability,” says Siddons. “But, that’s changed. As the world moves into the digital sphere, clients now have a far greater understanding and control of what they want and how 114

they want it.’’

“It’s not just the client that has a greater understanding of so many different domains, their consumers, our partners and our people do too which wasn’t the case as much as

“ IT’S MORE THAN JUST AUDIENCE AND DATA ANALYTICS. IT’S ABOUT IDENTITY AND ACTUALLY TURNING THE DATA INTO VALUE AND BEING ABLE TO PROVIDE SUGGESTIONS AND IMPROVEMENTS TO CLIENTS” Daniel Vaczi, [m]PLATFORM MENA Head of Data & Technology

AUGUST 2018

S U P P LY C H A I N

five years ago. So, for us, the demands have changed because not only do clients rely on us provide the right advice to deliver on our promise to drive success for those clients, partners and people.”

This is where [m]PLATFORM comes in. [m] PLATFORM represents a key differentiator for GroupM, allowing it to gain insights into audiences like no other agency or provider could.

As Siddons notes, the industry has changed and so too has the market, and this forced GroupM to re-examine its process and service solution.

“The industry has grown,” he says. “As that market has changed, we looked at our operating model. Do we buy other businesses? Do we build our own technology? Or do we partner with other businesses? How do we stand tall above other players?’’

“It became clear to us that understanding our audiences and being able to use and apply scale to that was going to be a big differentiator.”

What [m]PLATFORM does is provide clients with the best in class audience insight, data analysis and visualization tools on a global scale.

But as Vaczi points out, “It’s more than just audience and data analytics. It’s about identity and actually turning the data into value and being able to provide actionable insights.’’

“We use sophisticated artificial intelligence to turn data into insight and then into actions, which is unique to this region. But let’s not forget that there is still a huge people element to this.” m i d d l e e a s t . b u s i n e s s c h i e f. c o m

115

GROUP M

In any technology conversation, it is often easy to forget the key role that employees, suppliers and people will play. That expertise element cannot be underestimated.

Vaczi firmly subscribes to that notion. “[m]PLATFORM requires a unique set of skills in order to deliver it,” he says. “We are really proud of the diversity of our teams who come from media planning, buying, programming, data science, analytics and trading backgrounds.’’

“That we have all of these specialists under one roof cannot be understated. Our people are what makes [m]PLATFORM truly unique.”

Attracting this talent is often a challenge, but it is 116

a challenge that Siddons feels GroupM has been incredibly successful at doing so.

Vaczi confirms, “it is incredibly important that we have the best people. We do this by making it a company that people genuinely want to work for.’’

“A key part of that for me, is that cross pollination of skills, talents and ideas. People really benefit from being a part of GroupM and it shows.”

Siddons points to GroupM as having one of the lowest turnovers of staff since he’s been there, not just in the industry but also across the region.

GroupM also has one eye on the future workforce and works closely with local universities and schools to foster a pathway for the next generation of students who can drive the company to new levels of innovation.

When identifying the challenge that lies ahead, AUGUST 2018

“ HAVING A SHARED VISION WITH THESE PARTNERS IS CRUCIAL. WHEN WE PARTNER WITH THESE COMPANIES, WE AIM FOR MULTIYEAR LONG-TERM RELATIONSHIPS. THIS REALLY ENSURES THAT WE ARE AIMING FOR THE SAME GOAL AND THIS APPLIES ACROSS OUR ENTIRE GLOBAL PRESENCE” Daniel Vaczi, [m]PLATFORM MENA Head of Data & Technology

S U P P LY C H A I N

GroupM looked at partner relationships

FORM, but both admit that for them the

and how those relationships can push the

journey is very much still at the beginning.

capabilities of the company. In any

As the company embraces the future of

technology transformation or journey, no

digital, it will do so by building on the

company can do it alone.

foundations of [m]PLATFORM. Data will

“As much as we want to use our own

only continue to define and redefine the

people, in some cases we do need to look to

industry and so GroupM will continuously

our suppliers and partners to help push our

place data at the very core of its operations

capabilities and our skillsets in order to achieve

in order to gain better insights which will

our project goals or roadmap,” says Vaczi.

drive greater results for its clients.

“Having a shared vision with these partners is crucial. When we partner with these companies, we aim for multiyear

“At GroupM we continue to re-invest into our people and technology,” he says.

“We are looking to innovate every week

long-term relationships. This really ensures

so that we are operating in a very different

that we are aiming for the same goal and this

place than we were last week and will be in a

applies across our entire global presence.’’

very different place next week.”

Both Siddons and Vaczi have been on a considerable journey over the last few years through the development of [m]PLATm i d d l e e a s t . b u s i n e s s c h i e f. c o m

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Fletcher Building RTG Delivering robust, sustainable and cost-effective roofing across MEA WRIT TEN BY

TOM WADLOW PRODUCED BY

CR AIG DANIEL S

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FLETCHER BUILDING ROOF TILE GROUP

Through its three well-established brands, Decra, Gerard and Fortiza, the subsidiary of New Zealand construction giant Fletcher Building is looking to grow across the Middle East and Africa in an improving investment climate The Middle East and Africa (MEA) region is awash with opportunities for forward-thinking construction companies and their suppliers.

Following the economic slowdown of a decade ago, operators in the region’s construction industry and supply chain are observing a stabilisation of the market thanks to an improving financial picture, driven in part by recovering commodity prices.

Fletcher Building Roof Tile Group (RTG) is one such observer. A regional division of the New Zealand building giant, the unit delivers roofing solutions through three brands – Decra, Gerard and Fortiza.

In charge of growing brand awareness and facilitating innovation of Fletcher Building RTG’s product portfolio further is Lamjed Kefi, Managing Director Middle East and Africa.

Having worked out of the Middle East since 2007 for two construction multinationals, Kefi

O

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“We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world.There will be a big housing deficit and that is a huge opportunity.”

— Lamjed Kefi, Managing Director Middle East and Africa

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FLETCHER BUILDING ROOF TILE GROUP

says that the investment climate is improving, and that Fletcher Building RTG is well-placed to take advantage and supply this demand.

“We see stability coming and that economic improvement can benefit our business,” he explains. “We need to realise that the Africa-Middle East region is a large one, and that by 2030 around 25% of the world’s population will live in this part of the world. There will be a big housing

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deficit and that is a huge opportunity.”

Kefi also points to the wider Fletcher Group’s formidable history and reputation in the sector, something which will stand it in good stead when looking to expand into new markets. The Kiwi corporation can be traced back to the early 1900s, and over the course of the last century has developed into a multibillion-dollar multinational.

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“ We have already built up a very high brand equity in the region.We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, not only online but also on billboards, at trade shows and on TV and radio spots” — Lamjed Kefi, Managing Director Middle East and Africa

A standout portfolio Fletcher Building Roof Tile Group manufacturers solutions under its three brands from plants in Asia, Europe, the US and New Zealand, and pioneered in the first metal roofing tile in 1957, a formula which defines the company’s products today.

It is this characteristic that enables it to provide a massive 50-year warranty to customers, with tiles able to withstand the harshest of environments, from extreme heat to Arctic cold. A durable base coat and layer bonding also ensure these tiles can withstand being chipped or strained, making sure the important 100% coverage remains.

“When I found out about the warranty before I joined it said to me ‘wow this is a very special product’,” Kefi says. “It also said that this was a special company that commits to home owners and customers.”

Another key characteristic of Fletcher Building RTG’s m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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Click to watch: Fletcher Building Overview

portfolio is that it covers a wide range of price points which can cater to various budgets and specifications.

This ability to be competitive is underpinned by an efficient manufacturing and transportation operation.

Kefi explains: “The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand. Not only does this keep our cost down, but lighter

tiles also save on the structural elements of the house or building.”

Further, energy efficiency qualities also help to make Decra, Gerard and Fortiza roofing solutions economically sound.

“They are 100% recyclable,” Kefi states. “The material is thin and light so that means it cools down quicker during the evenings than clay or stone tiles, which radiate heat through the night and results in higher energy consumption.”

Based in Dubai, Kefi cites signifim i d d l e e a s t . b u s i n e s s c h i e f. c o m

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cant construction projects in the emirate that Fletcher Building RTG has supplied through the decades, the most notable being Jebel Ali Village and several landmark hotels such as Jumeriah Beach and Murooj Rotana. It also provided roofing solutions for the Dubai Mall.

Innovation In order to keep securing significant building projects, innovating a fresh offering and differentiating from competitors will be crucial to Kefi and his team.

From diversifying colour palettes to developing an authentic slate-style tile, Fletcher Building RTG is constantly seeking to offer something new to existing and prospective customers.

“We are able to have a profile which has the same look and feel,” Kefi says, “and that gives our customer the option of a

“The lightweight products we have are up to seven or eight times lighter than our competitors, which allows us to transport goods very economically from the likes of New Zealand” — Lamjed Kefi, Managing Director Middle East and Africa AUGUST 2018

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lightweight product but with the beauty and look of slate. That’s one of the inventions we have worked. Of course, we keep on inventing and making the system more user friendly and easy to install, using tooling which is more friendly and safer for installers.”

Beyond reformulating products, Kefi also explains how the business has introduced more innovative ways of marketing and reaching out to its customers in the first place.

“We are very active on social media

and try to reach out to the end users to make them aware of our product, our advantages and what it is giving to them,” he adds. “We want them to use our products and let them experience the durability, the warrantee, the cost saving they’ll have in the long term and in the short term because of the installation cost.

“We have already built up a very high brand equity in the region. We are the largest branded metal rooftile supplier, and that is in part due to what we have invested in marketing, m i d d l e e a s t . b u s i n e s s c h i e f. c o m

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not only online but also on billboards, at trade shows and on TV and radio spots.”

Receiving feedback from these customers is equally as important to Kefi, who highlights how communication with distributors is vital in ensuring that comments make their way back to decision makers at Fletcher Building RTG. “We have set up training programmes to train professional and approved installers for our products and these guys are constantly on the road installing our roofs,” he AUGUST 2018

continues. “They come up with very valuable feedback on what they experience, how they experience it, especially when we launch new products.”

A partner-powered future Looking ahead, as well as growing its presence across the MEA region, Kefi and his division may explore the possibility of moving production closer to its key markets.

“Bringing some production locally should have a significant cost advantage, but it is not likely at this stage,” he explains. “We always revaluate

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these options and it might be possible in the future that we do this.”

Whether relocating production closer to customers or simply expanding the Decra, Gerard and Fortiza brands in MEA markets, utilising local partners is and will continue to be paramount.

“Local distributors and agents have that knowledge of the market, rules and regulations that we need in order to be successful,” Kefi says. “Further-

more, we are cooperating with the New Zealand Trade Organization who is helping us a higher level. We hear more about trends and what’s going on, on a political level, about the currency available in the region as well.

“This knowledge will help us deliver our key priorities of reinforcing our presence and differentiating from the competition.”

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