Business Review Middle East magazine - August 2017

August 2017

www.businessreviewmiddleeast.com

RAISING ITS

GAME

HOW TECH WILL SERVE THE 2022 WORLD CUP ARENAS IN QATAR

IKEA: UNLOCKING RUSSIA FOR MIDDLE EAST BRANDS

TOP 10 MIDDLE EASTERN EXPORTS

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FOREWORD IS QATAR READY? This month, we take a look at the technologically-advanced football stadiums designed by World Cup 2022 hosts Qatar. Packed full of exciting features that will aid both players and fans alike, these sporting arenas are leading the way in stadium design and infrastructure.

Russia is proving to be an essential destination for Middle East retail franchises at the moment, and the emergence of many new brands in the country is down to one of its most recognisable shopping outlets. We chat to Svetlana Burzyantseva, Head of Leasing at IKEA Centres Russia, on how some of the Middle East’s biggest players in franchising are utilising the benefits of working with IKEA as they look to exploit the potential of a Russian sector that is still trying to catch up with the saturated markets of Western Europe and North America.

We also talk to FEBC, American Hospital Dubai, ServiceNow and Plafond Fitout.

Enjoy the read, and as always, tweet your feedback @BusinessRevME

Enjoy the issue!

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F E AT U R E S

IKEA RUSSIA Luring the big players in Middle Eastern retail

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PROFILE

TECHNOLOGY

INSIDE QATAR’S IMPRESSIVE FOOTBALL STADIA

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August 2017

TOP 10

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IKEA RUSSIA Luring the big players in Middle Eastern retail

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August 2017

Russia is proving to be an essential destination for Middle East retail franchises, and the emergence of many new brands in the country is down to one of its most recognisable shopping outlets Written by: BEN MOUNCER

IKEA CENTRES RUSSIA (ICR) is part of the IKEA Group and holds 22 million square feet of retail space in Russia through its MEGA chain of shopping centres, with the centres attracting 265 million visitors annually and employing 135,000 workers.

2017 has seen some of the Middle East’s biggest players in franchising, utilizing the benefits of working with IKEA as they look to exploit the potential of a Russian sector that is still trying to catch up with the saturated markets of Western Europe and North America.

Svetlana Burzyantseva, ICR’s Head of Leasing, has a decade’s worth of experience at the company and says some of its most valued clients come from the Middle East.

“We’ve been in the Russian market since 2002 and we have long-term

relationships with retailers and with retail groups in general,” she told Business Review Middle East.

“We are focussed on the long-term development of these relations with our retail partners. One long-term partner, for example, is the Middle Eastern Alshaya Group. It has more than 300 stores in Russia and one sixth of those stores are in our shopping centres.

“These are brands like Next, Body Shop, Starbucks… it’s a big group with a lot of brands that are being brought into the Russian market. This is one of the success stories of our partnerships in the Middle East.”

Alshaya Group has its headquarters in Kuwait and over 30 years has grown its portfolio with franchises of 80 instantly-recognisable brands in over 3,500 stores across Europe and the Middle East.

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PROFILE

“Next, Body Shop, Starbucks… it’s a big group with a lot of brands that are being brought into the Russian market.

This is one of the success stories of our partnerships in the Middle East” SVETLANA BURZYANTSEVA, ICR’S HEAD OF LEASING

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It has recently opened 53 new outlets in MEGA shopping centres, with the FIBA group opening 18 and the Surya Group bringing two stores to the Russian market.

Turkish retailers have also travelled north to trade with 30 new brands opening shops, taking the Middle East number beyond the 100 mark.

WHY RUSSIA? This begs the question - what are the reasons to move more and more trade to Russia?

“Not only for Middle Eastern partners, but in general, it’s a big market because it’s not always saturated. The situation of the retail market in the Russian market is half what it is in London or Paris, for example,” Burzyantseva explains.

“That’s why the potential is here – because 146 million people live in Russia and the Russian customer spends more than 50 percent of their income on retail. It’s quite a good audience for the retailers who decide to come here.

“IKEA is an international company that has already been working for 15 years on the Russian market, so we have long-term relations with

IKEA RUSSIA

Russian and international retail partners. We can show newcomers how to do their business here.

“We know about all of the potential and the complexities that you need to overcome to succeed and we have a lot of successful stories. We know how to help our partners develop.”

NETWORKING Burzyantseva sheds some light on ICR’s techniques for generating leads, saying its success in acquiring business comes through both being present at some key events in target regions such as the Middle East and also by way of retailers approaching them due to its strong reputation in the industry in Russia.

“We are present at a lot of B2B events and exhibitions. At these exhibitions, we meet a lot of potential retailers who are looking for expansions. This is one of the strongest ways in which we communicate,” she added.

“Sometimes we have a target list because we believe we are the strongest commercial real estate developer in Russia. We have a mission to bring new brands to the Russian market and usually we target a lot of new brands because 13

PROFILE

ICR FACT ICR is represented in 11 regions in Russia through 14 MEGA shopping centres, and has introduced 90 new brands in the last year alone

we’re eager to show their potential.

“Then sometimes it was identified by the brand that the next step for them for development will be the Russian market, so they contact us as well because we are the leading shopping centre - so you cannot avoid us in any case!”

ICR is represented in 11 regions in Russia through 14 MEGA shopping centres and has introduced 90 new brands in the last year alone, including Armani Exchange and Helly Hansen.

It has traditionally centred its model 14

August 2017

on the fashion industry but recently has stepped up its efforts to encourage customers to stay for longer in its MEGA centres through expansion into the food and beverage sectors via a €2bn investment programme.

The investment, according to the company, is ‘designed to deliver innovative and experiential meeting places alongside world-class retail’.

“We are focussing on three directions quite heavily. On top of fashion, we have enlarged the food and beverage offering

IKEA RUSSIA

“146 million people live in Russia and the Russian customer spends more than 50 percent of their income on retail” SVETLANA BURZYANTSEVA

dramatically,” reveals Burzyantseva.

“Recently we developed a food court in four of our 14 shopping centres. We’ve paid a lot of attention to this area because we believe that this is the future for the shopping centres on the Russian market.

“We of course want our customers to buy as much as possible when they come to our shopping centres because we are still far from the level that is in, for example, the UK and other European countries. This is the target which we want to achieve.”

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PROFILE

“We know about all of the potential and the complexities that you need to overcome to succeed and we have a lot of successful stories” SVETLANA BURZYANTSEVA

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August 2017

A GIANT IN THE MAKING It all started in 2002 for IKEA in Russia when it confirmed development plans for what would become the biggest shopping complex ever seen in the country, with the iconic retailer investing $250m in the Moscow ‘mega mall’ that opened in December of that year.

What was at that point an innovative and somewhat risky venture – IKEA had only opened its first store in Russia two years earlier – became the hugely successful business that exists today. Burzyantseva believes that at least partly comes down to the way it works with its employees.

“IKEA is well known as one of the best employers on the Russian market.

It has a strong reputation as the best company here. It has a humanistic approach to people and its loyalty level is quite high,” she explains.

“The company is global but each part of it follows the same values with a lot of good traditions. It’s one of the best employers in the world, I believe.

“Before, I worked in the business centre of Moscow. I started my career development in real estate, but for the last 10 years I’ve been working with commercial real estate.

“It’s much more exciting and interesting because we are working together to deliver the best experience for the customer. That’s a much more exciting journey.”

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TECHNOLOGY

INSIDE QATAR’S IMPRESSIVE FOOTBALL STADIA

Qatar’s World Cup stadia will lead the way in stadium design, technology and infrastructure Edited by: ANDR E W WOODS

TECHNOLOGY BEING CHOSEN TO host the World Cup is both an honor and a challenge. When a country is selected, it is being recognized for its planning skills, innovation, infrastructure and hospitality. It must then live up to this trust by putting on the greatest show it can‌ Since being selected to host the 2022 World Cup, Qatar has set to work constructing brand new stadiums while expanding its existing ones.

Designed to offer a convenient, comfortable, and above all safe environment for fans and players, its stadiums take advantage of the most

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advanced technologies and designs available. If all goes according to plan, Qatar will establish itself as one of the World Cup’s great innovators.

KEEPING COOL IN QATAR When FIFA was first deciding which country would host the 2022 World Cup, Qatar seemed an unlikely choice given its climate. The nation is subject to extreme temperatures during the summer, averaging 41 degrees Celsius (106 degrees Fahrenheit) in June and often rising as high 50 degrees. This would present a serious health risk to both the players, who

I N S I D E Q ATA R ’ S I M P R E S S I V E F O O T B A L L S TA D I A

would be forced to exert themselves in such extreme heat, and to fans, who would be at especially high risk, due to alcohol consumption.

Eager to rise above their climatic limitations, Qatari authorities proposed to build air-conditioned stadiums that would keep temperatures at relatively cooler 23 degrees Celsius (73 degrees Fahrenheit) throughout the games.

To accomplish this, each stadium is to be connected to a large water source, where an absorption chiller will cool the water to a temperature of six degrees Celsius. That water is then piped into the stadium and

used to chill the air, which would be distributed throughout the interior from a series of 500 jet nozzles. The stadiums will also have perforated seats to improve ventilation as well as a canopy to block the sunlight. As a result, fans will be kept cool using only 60 percent of the energy employed by traditional air-conditioning devices.

Qatar first tested this technology on a smaller stadium for its showcase, able to keep internal temperatures down to 27 degrees Celsius using this method. Since then, it has included the technology as part of its renovations to the Khalifa International

‘If all goes according to plan, Qatar will establish itself as one of the World Cup’s great innovators’

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TECHNOLOGY Stadium, Doha, which will play a prominent role in the World Cup. While it has not yet achieved temperatures of 23 degrees, Qatari authorities have managed to keep the stadium’s pitch area at 26 degrees and its stands between 24 and 28 degrees.

Despite these efforts to keep the stadiums cool, FIFA decided to postpone the 2022 games to November and December. Qatar, however, has pledged to move forward with the cooling technology anyway, installing it on new and renovated stadiums alike. Even if they don’t make much difference during the World Cup, the new air conditioning systems will be of great

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value during the Emir cups, the 2019 World Athletics Championship, and other games held in these stadiums.

SOLAR POWER SOLUTIONS When first proposed, the idea of air conditioning soccer stadiums in a country as hot as Qatar sounded like an ecological catastrophe.

Given FIFA’s strict requirements for environmental sustainability, this may have been enough to sink the country’s chances of being a host. But Qatar avoided this problem by investing in solar power for its stadiums.

Originally, Qatar considered building a centralised solar farm, which would

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power all the stadiums from a single source. Authorities eventually settled on building separate panels for different stadiums so that they could take advantage of the topography and architecture in each area. The proposed Lusail Iconic Stadium in northern Doha, for example, will mount solar panels on the canopies to cover its parking lots and service areas.

This will allow the stadium to provide plenty of surface area for its panels without taking up usable space.

The beauty of powering these air conditioning systems with solar panels is that the amount of energy available will grow in tandem with the need for cooling. The hottest days in Qatar, when climate control will require the most energy, will also be the days when sunlight is most abundant. The country will thus be able to keep its air conditioning carbon neutral under almost any circumstance, though there is an environmental cost to building the panels. It will also be able 23

TECHNOLOGY

‘The beauty of powering these air conditioning systems with solar panels is that the amount of energy available will grow in tandem with the need for cooling’ to sell excess solar energy to other buildings in the area, thereby reducing carbon emissions on multiple fronts.

MINI CITIES In addition to investing in climate control and environmental sustainability, Qatar is designing its stadiums to be both beautiful and easily navigable. The Lusail Iconic Stadium, for example, will have an interior moat separating the pitch area from hotels, shops, and other 24

August 2017

buildings on the perimeter. Fans can cross this moat on one of six bridges.

The stadium also has a retractable center roof, allowing authorities to open the stadium to the outside and close it again as needed.

Cost and carrying capacity vary by stadium. The Khalifa International Stadium, originally built in 1976, has been expanded to hold 68,000 people and incorporates the country’s latest air conditioning devices; these enhancements cost US$90

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million. Other stadiums include: • LUSAIL ICONIC STADIUM (NEW): 86,000 SEATS • DOHA PORT STADIUM (NEW): 45,000 SEATS • SPORTS CITY STADIUM (NEW): 47,000 SEATS • EDUCATION CITY STADIUM (NEW): 45,000 SEATS • UMM SLAL STADIUM (NEW): 45,000 SEATS • QATAR UNIVERSITY STADIUM (NEW): 43,000 SEATS • A L-GHARAFA STADIUM (EXPANDED): 44,000 SEATS • A L-KHOR STADIUM (NEW): 45,000 SEATS

• A L-RAYYAN STADIUM (EXPANDED): 44,000 SEATS • A L-WAKRAH STADIUM (NEW): 45,000 SEATS • A L-SHAMAL STADIUM (NEW): 45,000 SEATS

The total cost of renovations and new construction is projected to be $3 billion.

After the World Cup, many of the stadiums will be scaled back in size and Qatar will donate any seats and equipment it removes from them to lower-income countries with less advanced sporting infrastructure.

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Top 10

Middle Eastern EXPORTS

Based on statistics from the International Monetary Fund’s World Economic Outlook Database, the total Gross Domestic Product for Middle Eastern countries amounted to an estimated $9.118trn in 2016, with exports accounting for roughly 8.9% of the region’s total economic output. But what are the major exports coming out of the region?

Edite d by: ANDREW WOODS

TOP 10

TOP 10

Gems and precious metals

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Given the area’s rich stores of oil and other fossil fuels, it is perhaps no surprise that the Middle East also exports a significant amount of gems, industrial metals and other precious metals that are used for a variety of purposes and industries. For example, the Dubai Diamond Exchange, which is a leading global diamond trade centre, has seen its trade jump exponentially. In 2010 alone, US$14.6bn worth of polished diamonds were exported.Â

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August 2017

MIDDLE EASTERN EXPORTS

Electrical machinery and equipment

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According to figures from 2016, the largest economy in the Middle East, Saudi Arabia, exported electrical machinery and equipment totalling more than US$1bn.Â

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Vehicles

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The Middle East region, as a whole, exports about US$1.5bn worth of cars, trucks and other vehicles.

Of the top 10 countries, Saudi Arabia leads the Middle East in a number of vehicles exported with $745.5mn; Kuwait following closely in second place with exports totalling $557.7mn. The United Arab Emirates trails a distant third with $96.3mn.Â

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MIDDLE EASTERN EXPORTS

Food products

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Saudi Arabia, the United Arab Emirates and Iraq are among the top Middle Eastern exporters of food products such as dairy, eggs and honey. According to figures by the World Bank, these three countries exported US$599,706, $563,860 and $367,901 respectively, in 2015. The entire region exported nearly $4mn worth of food products, according to figures for that year.Â

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Machinery

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In 2016, Saudi Arabia exported US$1.6bn worth of machinery, including computers. As the largest economy in the Middle East, this trend is indicative of the region’s efforts as it attempts to diversify its exports and expand the opportunities available to its workers. In addition to boosting its economy, this strategy is aimed at reducing the immigration of top professionals in the field.

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MIDDLE EASTERN EXPORTS

Aluminium

05

The Middle East exported US$12.9 billion of aluminium last year, with the United Arab Emirates, Bahrain, Saudi Arabia and Qatar responsible for $11.5bn of that figure.

2017 marks the second highest growth in the industry when measured by year-on-year figures. The region is expected to continue in its role as a leader in the production of aluminium by constantly implementing technologies in the metal’s refinement, processing and production. 33

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Ships and boats

04

Experts estimate that the Middle East is accountable for 20% of the world’s workboat market. More than 70% of the industry’s very large crude oil carriers (VLCOC) originate from this area.

However, the Middle East also produces and repairs ships and boats such as fire, police, rescue, patrol and oil spill boats, barges, dredgers and floating cranes.

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MIDDLE EASTERN EXPORTS

Organic chemicals

03

Representing 5.7% of the global shipments of organic chemicals, the Middle East exports in this category amounted to US$31.9bn. Anhydrous ammonia topped the region’s list of organic chemical exports at $1.3bn. At a distant second, third and fourth were exports of phosphoric acid ($372.3mn), distilled/conductivity water ($305.6mn) and carbon ($234.9 mn). The United Arab Emirates leads the Middle East in exporting organic chemicals such as sulfuric acid with nearly $546mn of sales in 2015. 35

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Plastics

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Exporting more than US$370mn worth of plastics signals the Middle East’s concerted push to become a more dominant force in the exportation of this industry.

Recognizing that the region is exposed to a certain amount of economic instability due to its dependence in the oil sector as the primary source of its exports, the Middle East has sought to be more aggressive with its efforts to diversify. By attempting to capture a larger portion of the already highly-profitable downstream petrochemicals industry via plastics, the region is expected to enhance its position. Demand for high-value plastics such as ethyl vinyl acetate (EVA), acrylonitrile butadiene (ABS) and polycarbonate is expected to grow.

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MIDDLE EASTERN EXPORTS

Mineral fuels

01

Both the production and the processing of mineral fuels, including crude oil and natural gas, are a major foundation for the economies of most of the 15 countries that comprise the Middle East, including Saudi Arabi, Yemen, Iraq, Kuwait, Syria, Bahrain, Iran, Oman, United Arab Emirates and Qatar. The region is among the largest sources of mineral fuel exports with the area accounting for about 18% of the amount imported by the United States, for example. Of those Middle Eastern countries that exported mineral fuels to the United States, Saudi Arabia was the country’s largest source. The Middle East was responsible for more than 40% of the world’s crude oil exports with a value of US$325bn in 2015.

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FEBC: PERFECTION IN PROCUREMENT Written by: Catherine Sturman Produced by: Heykel Ouni

Imad and Stefano during their weekly team meeting

DELIVERING PROCUREMENT SERVICES TO CLIENTS WORLDWIDE, FEBC INTERNATIONAL DISCUSSES HOW IT HAS GROWN TO DELIVER AN EXCEPTIONAL PERSONALISED SERVICE DELIVERY TO ITS CLIENTS

O

riginally founded in 1989 as a project and cost management consultancy firm, FEBC hit the procurement sector of furniture, fixtures and equipment (FF&E) in the 1990s with full force.

Obtaining ISO certification in 2015, incorporating ISO 9001, 14001, 28000 and 18001, the company has become the sole provider of ISO certified hospitality procurement services worldwide, enabling it to gain global exposure and a strong edge over competitors. Consequently, FEBC has fully cemented its presence in the MENA region, and is now headquartered in Dubai, with regional offices in Treviso and Hong Kong and local offices in Doha, Riyadh, Brunei, Malaysia and Nigeria.

“Obtaining ISO certification in 2015 has allowed us to bring a lot of accuracy and precision to

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the work that we do from many different angles; from a supply chain management angle, health and safety management angle, environmental compliance and quality assurance programs,” explains Communications Manager Tarek Dajani.

“This foundation is beneficial to clients, allowing them to have complete trust – whether this is through tracking or by knowing that they are dealing with a company that is completely compliant with ISO standards, the highest standards with any supply chain management company worldwide.”

FEBC has completed a number of projects across the Middle East and Africa, ranging from residential, boutique to five-star hotels. Recent projects, such as the Oberoi Al Zorah in the UAE, highlights the company’s focus on delivering world-class procurement of FF&E, collaborating

S U P P LY C H A I N

Alessandro Tedesco, COO (l) and Imad Dajani, CEO w w w. f e b c i n t e r n a t i o n a l . c o m

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FEBC

We work and live by our values – whether that’s how we treat our own staff or when we communicate with our clients” Tarek Dajani, Communications Manager

Bespoke production Producing excellence anywhere

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Speciality Turkish restaurant, BESH with a number of suppliers. Additionally, FEBC is currently working on one of the largest projects in Algeria, the Marriott Bab El Zowar Hotel development, with over 2,300 rooms and 380,000 sq m of built-up area. The project is by far the largest privately funded hospitality development in the whole of Africa.

“I think this corporation is really invaluable for the customer,” comments Stefano Giudici, Regional Director for Europe and Africa. Tarek Dajani supports this further, stating: “We are proud to be working with top operators, such as the Marriott, Starwood, Hilton, Accord, Hyatt, Mandarin Oriental, Kempinski, Oberoi etc...

We value the relationships we build with our clients and they repeatedly come back to work with us based on their positive experiences.”

Ongoing operations FEBC’s development of in-house procurement software, febcProcure, has enabled clients to gain access to live tracking of all company projects, in an aim to provide complete transparency. Through the software, clients can access log books, documents and see the progress of various projects, as opposed to solely presenting projects which have been completed.

w w w. f e b c i n t e r n a t i o n a l . c o m

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FEBC

SERVING HOSPITALITY WITH A HEART Rikan is a leading manufacturer and supplier of luxury accessories for Rooms and F&B for the Hospitality Industry.

www.rikanworld.com

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The team gather at the regional head office in Treviso, Italy Tarek Dajani explains: “It’s a journey not only for us, but for our clients as well. We want to make sure that we are flexible enough to provide clients with the services that they are paying for, and not just be a company that buys, sells and procures furniture.

That’s why we view ourselves as procurement consultants.”

With this approach, FEBC repeatedly meets with clients wherever they are located, irrespective of other

S U P P LY C H A I N

We undertake value engineering with the customer and work together to find solutions, and where we can find potential savings” Stefano Giudici, Regional Director for Europe and Africa

ongoing projects. Tarek Dajani adds: “Whether its small touches like gifts during Ramadan or Eid, or a simple catch up over dinner, we always make sure that we strengthen the bond, because we view our relationships with clients as more of a partnership.

“Trust is a very important value that we hold, and we work and live by our values – whether that’s how we treat our own staff or when we communicate with our clients. It’s all founded on trust, strong relationships and dependability as a company, precision, accuracy – these are a lot of the values that we hold.”

Cost savings These values filter into FEBC’s strict processes, with the implementation of value engineering. Giudici explains:

“We undertake value engineering with the customer and work together to find solutions, and where we can find potential savings. For example, we are in discussions surrounding a new project in Sweden. The design has been completed by the architect, and we are now working with the customer to find a way to make this project a reality.”

FEBC places an increased focus on not only remaining competitive, but to repeatedly add value for its clients. Whilst an expensive fabric is often selected, for example, FEBC will offer the same or an alternative product, which will achieve the same result, with a firm focus on retaining and respecting quality. “Our first point is respecting the quality and the price for our customer,” adds Giudici. “It is

w w w. f e b c i n t e r n a t i o n a l . c o m

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FEBC

Inside the 5-star Al Zorah Oberoi Resort

In certain areas, we are encountering order delays and putting projects on hold. However, other areas are warming up – for example, in Africa there is a lot going on�

Imad Dajani, Chief Executive Officer

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S U P P LY C H A I N

very important to make our customer satisfied, and to expect the quality requested within the project.”

“We don’t aim for satisfaction – we aim for perfection,” adds Tarek Dajani. “In aiming for perfection and excellence, we then constantly tend to meet the client’s requirements.

Every client has their own unique understanding and representation of what quality means to their hotel and brand. We always try to match the quality on day one from there, to the finished product.”

In deliberately cutting out the

middle men, FEBC now goes direct to suppliers and manufacturers to not only guarantee cost savings, but ensure ongoing positive relationships.

Although suppliers continue to remain an important focus, Chief Executive Officer Imad Dajani explains that it is essential for the business to “remain aware of supplier performance, experience, the type of level pricing and supplier flexibility, in order to not only add value, but also to offer the right price and performance accordingly”.

With this in mind, alongside the implementation of febcProcure

Outdoor furniture at the Al Zorah Oberoi Resort

w w w. f e b c i n t e r n a t i o n a l . c o m

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FEBC

and use of value engineering, the company is continually able to build a strong base of manufacturers and suppliers worldwide.

Additionally, to support clients further, FEBC also adopts a payment by performance approach, giving it a competitive edge within the procurement sector in the region.

Tarek Dajani adds: “The more projects we have taken on board and the operators that we’ve worked with, the more we understand what our clients’ needs are. We learn their needs, we build a strategy and we drive the process, understanding what our core clients and customers require.”

Future growth Whilst FEBC continually works to improve its service, Imad Dajani highlights that the company is seeing a number of challenges. With clients becoming increasingly cost conscious, the company is also seeing increased delays in regards to payments and released monies, creating project delays. “I think it is a combination of financial worries about the current political position

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S U P P LY C H A I N

around the world,” he says. “In certain areas, we are encountering substantial order delays and putting projects on hold. However, other areas are warming up – for example, in Africa there is a lot going on.”

With this in mind, FEBC aims to expand its operations in India and ex-Soviet Union areas, such as Kazakhstan, Azerbaijan and surrounding areas. Furthermore, FEBC places great importance on expanding in Europe and developing its current footprint within London. “We want to expand our operations and become a real leader in the European Market over the next 10 years,” concludes Tarek Dajani. “We have set our vision really very high and this is our goal – we want to continue developing our operations worldwide, increase our local presence globally, and continue to innovate our service and operation.”

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Supporting collaboration within healthcare Written by: Catherine Sturman Produced by: Stuart Shirra

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A M E R I C A N H O S P I TA L D U B A I

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H E A LT H C A R E

The American Hospital Dubai is a 200+ bed private hospital, designed to provide a high quality, American standard of healthcare to meet the needs and exceed the expectations of the people of Dubai, the UAE and the surrounding Gulf States

A

merican Hospital Dubai is the first private hospital in the middle east to obtain JCIA accreditation, which remains the most prestigious healthcare accreditation in the US, in year 2000. Since this time, the hospital has sought to deliver exceptional, patient-centered care, expanding its services in alignment with a growing private healthcare demand in the UAE and the region.

Manivel Periasamy, Director of Facilities Management, has been with the hospital since its inception, and has viewed first-hand how American Hospital Dubai has transformed in to current size from its original capacity. “In the last 10 years the healthcare industry has been booming in the UAE, and the government is supporting healthcare growth through medical tourism promotions,” he says.

“Medical tourism promotions are attracting patients in the middle east region and Africa, supported by

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1,000+

The number of American Hospital Dubai employees

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quality healthcare services available in Dubai and UAE, moving progressively towards the government’s goal of best healthcare destination in the region.”

With an increased number of health facilities launching in the UAE, American Hospital Dubai continues focusing on bringing specialty clinical services to cater to the needs of the patients. It earned the reputation by building the hospital with an ambience based on a five-star hotel features and adopting a high quality, costeffective US standards of healthcare.

To ensure a robust, patient-centered service delivery that adheres to US standards, American Hospital has followed the policy of recruiting Board certified physicians from US or equivalent and high quality nursing staff. It has been consistently maintaining JCIA accreditation status for six times in its aspiration to ensure best practices in the care of patients, retaining unique position within the UAE’s healthcare sector. This has therefore provided what Periasamy describes as “an edge over other facilities in the region by achieving greater quality of clinical outcomes”.

Though many new hospitals have been set up in recent times, it takes years for a hospital to gain the confidence of the patients who look for quality of care and positive patient experience.

“When the hospital opened its services in 1996, the facility was unique by offering a nice ambience with all private patient rooms, building up our name and reputation,” he says.

“In terms of patient experience, when patients enter our campus, we are able to deliver primary, secondary and selected tertiary services, making the care access easier and in a comfortable and convenient manner.”

Through its continuous expansion, American Hospital Dubai has grown from 100 beds to accommodating over 200+ patients, and has developed multiple centers of excellence in the fields such as Cardiology, Oncology and Neuroscience, which have become known in the region.

The Comprehensive Cancer Care Program is a ‘one-stop service’ with a number of treatments on offer, ranging from Chemotherapy, Surgical Oncology to Radiotherapy.

The hospital’s Heart Center has also

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A M E R I C A N H O S P I TA L D U B A I TOTAL CLEAN AIR SOLUTION FOR HEALTHCARE FACILITIES Around the globe, AAF and AmericanAirFilter brand filters are providing clean air solutions for healthcare facilities in areas such as patient rooms, medical procedure areas, operating rooms, dentist offices, research centers, morgues and cafeterias. From inexpensive disposable panel filters to high efficiency, extended surface filters and chemical gasphase filteration, we market the widest range of air filtration products available.

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“In terms of patient experience, when patients enter our campus, we are able to deliver primary, secondary and selected tertiary services , making the care access easier in a comfortable and convenient manner” – Manivel Periasamy, Director of Facilities Management 56

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added Electrophysiology Services to its list of specialties recently.

Additionally, Periasamy explains that there is also now a growing need for diabetic services in the UAE, to which the hospital has consequently expanded its endocrinology services to meet this demand, alongside providing a number of thyroid treatments, ensuring a patient-centered, personalised service throughout.

TECHNOLOGICAL INVESTMENT To match its growth and reputation, and also remain competitive, American Hospital Dubai has invested in a number of new technologies. Its new 640 slice Computed Tomography (CT) scanner, for example, highlights its commitment to reduce traditional levels of radiation from traditional CT scans. The technology will provide clear images of organs, with an exceptional turnaround time.

Such efforts portray the hospital’s objective to deliver personalised, straight-forward treatments without delay. “American Hospital Dubai clinical outcomes are far superior,”

H E A LT H C A R E

comments Periasamy. “We are ensuring the philosophy of ‘patients first’ since we opened our doors to patients”. High-end MRI, PET/CT, SPECT/CT, EP lab, Linac, Navigation Systems are some of the advanced modalities installed in the hospital supporting the physicians in delivering the better care to patients.

WORLDWIDE PARTNERSHIPS Apart from JCI accreditation, American Hospital Dubai has also been continually accredited by the

College of American Pathologists (CAP) eight times, assuring the patients on the quality of lab results.

This is alongside the hospital’s success in becoming the first in the Middle East to join the Mayo Clinical Care Network in 2016, which has over 40 MCCN network healthcare organisations worldwide.

“Mayo Clinic has been in the market for 150 years and is one of the biggest healthcare organisations in the US,” explains Periasamy.

“Mayo Clinic has chosen American

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hospital Dubai as their network member because both organisations share the common goal of ‘patients first’. Mayo Clinic Care Network (MCCN) offers various clinical collaborations to augment our commitment to patient care and we share the clinical expertise in many ways”.

POSITIVE FEEDBACK With ongoing market challenges, Periasamy acknowledges that shortage of high quality clinical staff remains a common challenge within the healthcare sector in the Middle East. American Hospital repeatedly receives positive feedback from patients through its Patient Feedback System, which is supported by internal Key Performance Indicators (KPI), regularly met by its staff.

Periasamy concludes: “Our patient satisfaction levels remain higher at all times and our internal quality control mechanisms are based on Continuous Quality Improvement principles and C-ICARE values. The key differentiator is in the clinical outcomes which has been driving our growth historically.”

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Delivering world class cloud-based solutions Written by: Catherine Sturman Produced by: Stuart Shirra

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We speak with Mark Ackerman about how ServiceNow is continuing to develop its services, buying up expertise within a number of sectors

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panning 54 global locations, ServiceNow has rapidly expanded its cloud and IT solutions worldwide, delivering a range of services within the business world. The company has grown substantially, and extended its operations into the Middle East, with bases in Saudi Arabia, the UAE, Qatar and Bahrain.

Fully on track globally in terms of revenue growth, ServiceNow continues to develop its IT operations and management services, with the aim to increase its influence within the international market. The company’s customer base within the Middle East has now extended to Egypt, Morocco and Lebanon, highlighting its ever-growing presence within the region.

ServiceNow’s Regional Sales Manager for the Middle East Mark Ackerman explains that “ServiceNow has been developing its services around building a product platform, partaking in acquisitions, and is building a thorough platform functionality”. To this end, the company developed its ServiceNow platform, which places a high level of company applications onto a single,

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“ServiceNow has been developing its services around building a product platform, partaking in acquisitions, and is building a thorough platform functionality” – Mark Ackerman, Regional Sales Director for the Middle East

SERVICENOW

user-friendly cloud platform.

“ServiceNow is a very new organisation, particularly for the territory,” Ackerman adds.

“The way we approach service management and end-service management is significantly different to other organisations.”

Recent developments Utilising a single platform, rather than an amalgamation of acquisitions, is something relatively new within the

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Middle East, explains Ackerman.

“When we look at a lot of legacy carriers, they consolidate all of the technologies and an all-encompassing solution. That’s probably one of the biggest differentiators for us, the way we deliver our cloud-based services, rather than as part of several different areas.” To this effect, ServiceNow has adopted a single channel architecture, as opposed to a multi-channel architecture, which positively impacts customers and

TECHNOLOGY

3,000 The number of staff employed by ServiceNow

caters towards an increased client demand.

Addressing the way in which individuals work in the corporate space, ServiceNow’s new platform is able to manage agreements and service delivery across multiple departments, ranging from IT and HR to customer service and marketing, providing a complete consumer-like, user experience.

To support this further, ServiceNow’s vested interest in automation and machine learning has led to the company’s acquisition of machine learning startup DXContinuum in an all cash transaction.

The purchase will enable ServiceNow to increase workplace productivity through the implementation of intelligent automation, creating efficiencies across

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TECHNOLOGY

the board through predictive models and the creation of personalised data sets. “The technology is focused on predictive analytics, machine learning capabilities, automated task assignments and so on,” adds Ackerman.

Additionally, ServiceNow’s acquisition of virtual messaging service Qlue has emphasised the company’s interest in chat bot technology, which will become implemented within its customer service and security divisions. Repurposing the technology will enable it to become fully integrated with ServiceNow’s platform, and ensure the company remains focused on building strong relationships with customers and corporations.

Further transformations At present, ServiceNow remains one of the only Enterprise Service Management SaaS companies within the Middle East, and the company is achieving increased growth in this area.

“We are much larger now and have a much stronger base,” says Ackerman.

“This has allowed us to move into

“The way we approach service management and end-service management is significantly different to other organisations” – Mark Ackerman, Regional Sales Director for the Middle East new positions and opportunities that were not available before.”

One such position is the development of ServiceNow’s recentlyreleased application, Jakarta, which will bring a number of other acquisitions to market within its platform. Jakarta encompasses seven new application models and functionalities, solely influenced by IT and business sectors, but will also feed into the company’s move towards the security space.

Working closely with a number of partners to structure the company’s

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response to cyber-attacks, Jakarta enables users to share any security incidents and also houses software asset management technology. This delivers real-time license compliance information, automated risk management and the delivery of sophisticated workflows, supporting ServiceNow’s growth further.

Additionally, Ackerman explains that ServiceNow has also partnered with technology giant GE Digital, which is in the process of rolling out ServiceNow globally. This will enable the company’s applications to function in collaboration

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with GE’s Predix platform. “This partnership will give customers closer analytics and information around customer interactions and customer service management,” comments Ackerman. “This is one of our big projects at the moment.”

Continuous engagement With a twofold approach to engaging with customers, ServiceNow’s commitment to sending out quarterly surveys highlight the company’s positive feedback from customers,

TECHNOLOGY

2004 The year that ServiceNow was founded

with scores remaining consistently high, alongside high retention rates to boot. The company also houses a team which, as Ackerman explains, “manages company partners and alleviates a partner level within all of the countries we operate”.

“This gives us the ability to have a strong partner base and interact with customers, and supports the growth of the platform. We’re then able to then expand the platform, not just within IT but outside of IT to other business functions,” adds Ackerman.

This high-level engagement also extends to the company’s relationships with suppliers. Working with niche partners, such as Unikomm Group, ServiceNow continues to expand its services.

Additionally, the company’s partnership with Quintica, which Ackerman explains is similar, focuses more delivering scalable solutions.

The development of the ServiceNow platform has enabled the launch of services that have become highly influential amongst increased competition within the Middle East. With a strong support network, a varied range of solutions alongside a seamless delivery of services, ServiceNow continues to drive support throughout the corporate space, meeting the needs of customers throughout its operations for times to come.

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Sustainable growth in the UAE Written by: Catherine Sturman Produced by: Jon Bennett

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PLAFOND

DIMITRI PAPAKONSTANTINOU MANAGING DIRECTOR

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We speak with Managing Director Dimitri Papakonstantinou about how Plafond has undergone significant growth throughout the last three years, delivering quality services to clients within the UAE

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ith the ability to carry out any fitout work in house and provide world class end-to-end solutions, Dubai based multi-disciplinary, fit out, MEP and Facilities Management Specialist Plafond has seen increased sustainable growth throughout the last three years. With improved control over processes ranging from procurement, to execution and delivery, the company has a significant edge over rivals.

Implementing a personalised service, in contrast to other management contractors reliant on external companies to deliver services, Plafond continually utilises key technologies to ensure it remains ahead within the construction industry, and is involved with projects ranging from hospitality and food and beverages, all the way to

residential. With approximately 1,500 employees, the company continues to go from strength to strength.

“Three quarters of our clientele are repeat customers and repeat business. However, we’re selective with who we work and the projects that we take on,” explains Managing Director Dimitri Papakonstantinou.

“We do what we say – communication between us and our clients is key, but particularly in this part of the world, relationships are key.”

One of the company’s key projects is with HSBC in the UAE, where it has acquired an MEP subcontract.

Responsible for providing full MEP services at HSBC’s headquarters, Papakonstantinou states that the company “is about a quarter of the way through the construction phase.” However, he explains that as a result of Dubai’s Expo 2020, there has been an increased focus

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“We do what we say – communication between us and our clients is key, but particularly in this part of the world, relationships are key” – Dimitri Papakonstantinou, Managing Director

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on hospitality and hotel construction in order to cater to increased global tourism numbers.

“There has been significant growth in the food and beverage sector, retail and theme parks. In the last couple of years, we’ve been involved in projects, such as Dubai Parks, where we have been working in the Bollywood section,” he says.

Building services Consequently, with increased competition, Plafond is utilising key technologies to provide world class builds, such as 3D modelling, which is being incorporated into new and existing projects. By implementing these tools, the company is looking to see how these technologies will impact work requirements long term. Additionally, Plafond is also looking at prefabricated and modulated services, where certain components are produced offsite in a facility which the company set up eight months ago. “It reduces labour costs, electricity, and increases productivity and the quality of services which we deliver,” explains Papakonstantinou, and also ensures that the company continues to provide competitive rates.

Plafond has also placed significant investment in its workers, providing various training courses, where all technicians are trained in multidisciplinary services. This commitment filters all the way down to office staff, who are provided with software training

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and any other appropriate training. To this effect, the company has placed a strong focus on health and safety, of which standards or concerns are reported and monitored regularly.

“We have a very good record to show for the last 10 years surrounding our health and safety records,” adds Papakonstantinou. The company has achieved ISO14001 accreditation, and awarded BH OHSAS18001 with regards to occupational health and safety management systems to highlight this commitment.

Market challenges Whilst Papakonstantinou reflects that the industry is indeed complex, one common snag for all companies is contractual, where companies rely on external parties to deliver work on time and on budget, against an increased client expectation.

“It’s a challenging industry even when things go well, but it’s a difficult industry to manage. It really is about planning,” he says.

“The biggest challenge that the market is facing here, is the fact that it is cash flow heavy. The market has been very slow in the past few years in

terms of release of payments, so cash is probably the biggest challenge that everyone is having in the market.”

Nonetheless, the company’s financial year runs from April to March. With a 360-million-dirham target to reach, this is an increase of over 30 percent from last year’s revenue. However, Papakonstantinou concludes by stating, “we’re on track so far to secure more than 80 percent of that budget already, and really focusing on optimising what we do and increasing profitability where possible.”

With a focus on expanding its operations throughout the UAE, the company will continue to grow sustainably and provide quality services to clients, ensuring world-class delivery and exceptional planning throughout its future operations.

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