Business Review Middle East - December 2017 by Business Chief Middle East

December 2017

www.businessreviewmiddleeast.com

BANK ABC

Smart about digital

Women are helping to steer Saudi Arabiaâ&#x20AC;&#x2122;s 2030 Vision

PLAYING

IT COOL

TRANE LEADS THE MARKET IN HVAC SERVICES

TOP 10

Imports into Saudi Arabia

GULF HEALTH COUNCIL

NARROWING

THE GULF IN

H E A LT H C A R E PROCUREMENT

FOREWORD HELLO AND WELCOME to December’s edition of Business Review Middle East. As we head towards the climax of an eventful year, we have a wealth of exclusive insights from companies spanning sectors from energy and construction to supply chain and healthcare. Our cover feature is an interview with Fatthi Alkathiry, Director at Gulf Joint Procurement for the Gulf Health Council. Alkathiry discusses how his team ensures the standardisation of the medicines directory and medical supplies of all specialities across the GCC. As with the medical industry, a sector in constant demand in the Middle East is air conditioning. We talk to Trane, key supplier of HVAC services and subsidiary of US giant Ingersoll Rand. There are a number of technology-focused exclusives included in this issue, including features with Bank ABC, UAE Exchange and MIS. Also featured this month are American University of Beirut, Tetra Pak Group, Bahrain Bay Development and Nassab Contracting. Finally, be sure to read an analysis of the recent legislative breakthrough in Saudi Arabia which permits females to drive – it is a big move that is sure to have an economic impact. Sticking with KSA, this month’s top 10 looks at the most significant imports into the country.

Enjoy the issue! www.businessreviewmiddleeast.com www.bizclikmedia.com

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TOP 10

Women are Imports into helping to steer Saudi Arabia Saudi Arabiaâ&#x20AC;&#x2122;s 2030 Vision 4

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PLAYING IT COOL Trane leads the market in HVAC services. Business Review Asia spoke with Commercial Director Ghassan Freiwat about sustainability initiatives and expanding Traneâ&#x20AC;&#x2122;s offering in over 60 emerging markets across the Middle East Written by DAN BRIGHTMORE

INTERVIEW

Trane has been a subsidiary of Ingersoll Rand since 2007 10

December 2017

H O W P R I V AT E D ATA C A N H E L P M I D D L E E A S T B U S I N E S S E S

FOLLOWING HUMBLE BEGINNINGS in a Wisconsin plumbing store, Trane celebrated its 100-year anniversary in 2013. The pioneer in climate control and global leader in heating, ventilation and air-conditioning (HVAC) services has been a subsidiary of Ingersoll Rand since 2007 and is still playing it cool, having maintained an evergrowing presence in the Middle East for over four decades. From its Gulf Cooperation Council (GCC) base in Dubai, Trane operates in over 60 emerging markets across the Middle East and North Africa (MENA) region. Trane’s strategy is to continue to widen its spectrum of products to provide comfort and cooling solutions to all market segments and sectors. “We have a fully-fledged offering that brings synergy and balance via the three core pillars of our HVAC business,” states Ghassan Freiwat, Trane’s Commercial Director for the MENA region. “The prime goal is to bring value to our customers and achieve sustainability through reducing greenhouse gas emissions. We have a full range of equipment, applied and unitary, supported by a highly qualified salesforce here

in Dubai, both with engineers and applications, as well as a distribution channel. The second pillar is the aftersales service with a strong team of service engineers and technicians which also supports our rental initiative. The final pillar is what I call the ‘glue’ of the business. We have managed to combine all our services through our controlled offering, BMS (Building Management System) and the green Trane Building Advantage, offering the whole solutions portfolio. This is further enhanced by a specialist turnkey team providing the industry with efficient solutions driven by one unified goal: to maximise comfort and minimise energy consumption through optimisation and energy savings.” Freiwat notes that Trane has had to evolve in this way and develop a unique approach to both address energy demand in the region and maintain its green credentials in buildings via wide-ranging solutions. “The most important of these is the CenTraVac Chiller range using HFO refrigerant,” he explains. “This tackles the most pressing climate challenge issues and serves as the right solution to save energy, reduce operating costs and deliver on 11

INTERVIEW sustainability goals allied to standards and efficiency requirements for MEW regulations in the region.” Freiwat is a born optimist and believes every challenge faced is an opportunity waiting to be cultivated, none more so than Trane’s work on one of the region’s most enduring icon projects. “We worked on the air conditioning for the district plan that covers the Dubai Mall and the Burj Khalifa,” he recalls. “We have a CGA chiller which is installed at the highest point in the whole region at the Burj, cooling the server and mechanical rooms. This is the highest chiller in the world.” Trane worked on this groundbreaking construction with developer Emaar. The partner’s Director of Technical Services was full of praise for Trane: “We wanted an efficient, reliable, durable, environmentally responsible system. Trane was able to meet this requirement and provide our consultants with the technical information they needed.” A pioneer in the HVAC industry, Trane was the first company to introduce chillers with HFO refrigerant (a cost-effective fourth generation standard for the 21st century, offering 12

December 2017

Trane’s RTAF system

environmentally friendly efficiency) back in 2014. Freiwat recalls the challenge of offering this new solution to a market not always receptive to change. He argues Trane’s commitment to addressing energy demand in line with sustainability is a long-term focus with great benefits to customers as

H O W P R I V AT E D ATA C A N H E L P M I D D L E E A S T B U S I N E S S E S

In 2014

Trane was the first company to introduce chillers with HFO refrigerant

well as the planet. “We aim to save energy for a building’s owner and cut down on operating costs. Sustainability has been a prime goal for Trane for many years now,” Freiwat emphasises. “It starts with understanding the building’s needs. For example, an office building uses HVAC, lighting and building controls in a different way to an educational

or healthcare institution. Each has a unique requirement. From there, we access the opportunity and aim to make an existing building more efficient or design optimum systems for new buildings based on a customer’s specified RoI. This is really important in a region where utility bills can often leave you wideeyed.” Trane’s Connected Building Solutions make this possible by harnessing the power of IoT to mine for data-driven insights which allow buildings to be run more efficiently. More than 50% of the Trane portfolio has earned the Ingersoll 13

INTERVIEW

Ghassan Freiwat, Commercial Director, Trane

December 2017

H O W P R I V AT E D ATA C A N H E L P M I D D L E E A S T B U S I N E S S E S

Rand EcoWise endorsement. These products offer customers choices and meet the requirements of three important categories: they are available with the next generation of lower Global Warming Potential (GWP), reduce greenhouse gas emissions and maintain energy and efficiency through innovative design. It’s this proven in-house approach which attracts end users with Trane’s ability to combine expertise in equipment, controls and service, making a difference to major projects in the region such as the Al Maktoum International Airport in Dubai, the city’s Discovery Gardens development and a range of mammoth retail hubs including the Emirates Mall. Trane’s commitment to sustainability on projects like these is in line with GCC initiatives such as Expo 2020, Vision 2021 and Environment Vision 2030. Freiwat maintains that the company’s adherence to a broad range of standards across the region (UCC, MEW etc.) is critical here. “These efficiency standards are crucial to our strategy and long term planning,” he says. “Ingersoll Rand and its family of brands made a climate pledge targeting products and operations up to 2030. We aim

to cut the greenhouse gas emissions refrigerant footprint in our products by 50% - we started back in 2015. To do that we incorporate lower GWP HVAC refrigerant alternatives across the portfolio and also aim to reduce the company operationsrelated greenhouse gas emissions by 35% by 2020. To achieve these two goals the company is investing half a billion dollars in product related research and development by 2020.” This is an example of Trane putting its money where its mouth is in a bid to trigger positive global change. “As we speak, the company has managed to support the climate by avoiding the release of what is the equivalent to 6.7mn tonnes of CO2. This is equivalent to avoiding annual CO2 emissions from energy use in more than 700,000 homes. By 2030, the company aims to reduce the carbon footprint by 50mn tonnes.” Employing global best practices to serve the Middle East, Trane joined the Clinton Global Initiative (CGI) in 2007 with a commitment to reduce greenhouse gas emissions and, as partners in the programme, provide innovative self-funded energy upgrades that deliver significant 15

INTERVIEW energy operating cost reductions with HVAC systems, lighting and roofing materials. This has resulted in savings ranging from 10-50%. It’s integral to the company’s vision of utilising an array of solutions to build “customers for life” with its green Trane Building Advantage. “Community engagement has been key to this growth,” he notes. “We serve more than 80 district cooling plants in the region and 20 of the major standalone plants. And as a result of our MoU with Empower, that number will increase.” The importance of CSR to Trane is demonstrated by its robust roadmap across the region. “This action plan features seminars, roadshows and conferences to talk to developers, consultants and key figures in the marketplace,” Freiwat reveals. “That’s not just restricted to key figures in the industry but also includes people who care about the community. We want to educate the community around us and share our expertise for others to make use of. When we talk about refrigerant with the potential for 0DP (zero ozone depletion) with efficient and reliable products with low energy consumption, it goes hand in hand with the trio of GCC initiatives.” 16

December 2017

Trane’s business might be all about staying cool, but when it comes to expansion in the region things are hotting up. “One of the initiatives we have started is a joint venture with Dallah, our distributor in Saudi Arabia,” explains Freiwat. “This agreement includes the development of a new manufacturing facility in the King Abdullah Economic Centre (KAEC) with the objective of serving both the domestic market in Saudi and the GCC market as a whole. We’re talking about emerging markets where there is a hunger for new efficient HVAC products. We’ve worked with Dallah for the past 30 years so this gives us an assurance we can enhance our portfolio.” That enhancement is in full swing as Trane’s work on the King Abdullah Financial District nears completion in Saudi. Set to be the headquarters for the Capital Market Authority (CMA) and the Stock Exchange (Tadawul), Trane has provided systems for two 50,000-tonne cooling plants at the site, with each featuring 16 Trane Earthwise CenTraVac chillers – awarded ‘Best of the Best’ by the US Environmental Protection Agency in its Stratospheric Ozone

H O W P R I V AT E D ATA C A N H E L P M I D D L E E A S T B U S I N E S S E S

“More than 50% of the Trane portfolio has earned the Ingersoll Rand EcoWise endorsement” - Ghassan Freiwat, Commercial Director, Trane Trane’s CVHH unit Protection category. To deliver projects like these, Trane has worked for many years with Dubai-based contractor Al Shirawi Electrical & Mechanical, providing Trane Conquest scroll chillers designed to answer concerns about cooling, acoustics, efficiency and reliability. Originally a mechanical engineer by profession, Freiwat has been at Trane for nearly two decades, during which time he has found it vital to encourage diversity in the business

and be open to learning from the cross-cultural aspects of working across 63 different countries. “You need to be able to deal with people and their respective cultures,” he stresses. “The approach with my team is transparency, trust and confidence combined with dedication. If we live our days without enhancing our expertise we won’t stay ahead of the curve, which is always the strategy at Trane.” And as the company mantra states: ‘It’s hard to stop a Trane’. 17

INSIGHT

Women are helping to steer Saudi Arabia’s 2030 Vision Repealing Saudi Arabia’s driving ban will have a profound effect on the Kingdom, culturally and economically, while creating a brand-new car market in the process as its 2030 Vision is brought to life… Edited by OLIVIA MINNOCK 19

INSIGHT WITH THE BAN on driving for women in the Kingdom of Saudi Arabia lifted, there is a whole host of new business opportunities for those targeting female drivers in the region. Until now, Saudi Arabia was the only country in the world where women were forbidden to drive and now they can apply for licences, life will never be the same again. The ban on women applying for driving licences will be formally lifted in June 2018. At present, women need permission from a legal guardian, such as a father or husband, when applying for a driving license. Women also need a guardian in the car with them if they do get to drive. Now all of that has been eradicated. Statistics provided by Frost & Sullivan estimate between 90,000 and 150,000 women will obtain driving licences annually as a brand-new market opens up to car manufacturers, advertisers and insurers. The market reacted instantly to the opportunities on offer.

A new car market Ford offered a free Mustang to Sahar Nassif, an outspoken critic of the ban, as soon as the ban was lifted. 20

December 2017

Nassif has been a campaigner for women’s rights for a large part of her 63 years, and was previously arrested for driving illegally in Jeddah. She told the BBC, on the day the ban was lifted: “I’m really thrilled, everybody’s so thrilled – I’m so excited I don’t know what to do… I’m going to buy a Mustang!” Ford Middle East then tweeted Nassif: “Hi… we’d like to give you your dream car,” adding, “your Mustang awaits.” Nassif responded on the social media platform that this was indeed “another dream come true”. Other car dealers quickly released campaigns in newspaper and online praising the decision, with automotive giants Ford, Nissan and Volkswagen publishing ad campaigns on Twitter aimed squarely at attracting wealthy car buyers. Volkswagen proclaimed: “It’s your turn, take over the driver’s seat,” while Nissan congratulated the women of Saudi Arabia. US manufacturers who want to tap into this new market will have to rise to the competition. Japanese manufacturer Toyota made up for 32% of vehicle sales in Saudi Arabia last year, and South Korean company Hyundai own 24% of the market, according to figures from

INSIGHT

‘STATISTICS PROVIDED BY FROST & SULLIVAN ESTIMATE BETWEEN 90,000 AND 150,000 WOMEN WILL OBTAIN DRIVING LICENCES ANNUALLY AS A BRAND-NEW MARKET OPENS UP TO CAR MANUFACTURERS, ADVERTISERS AND INSURERS’ 22

December 2017

LMC Automotive. In March this year, Toyota agreed to begin a feasibility study on production in the Kingdom. The ban is going to have a dramatic effect on the Saudi car market. According to a survey by Strategic Vision, 40% of women stated they preferred vehicles which were the most comfortable, in comparison with 25% of men answering similarly. According to Strategic Vision’s Automotive Division President, Alexander Edwards: “Most women look for comfort, but after that they look for something that is either capable, fun or both.” Forbes Autos has suggested that SUVs with the highest percentage of females as their main driver include convenience features such as child seating options and advanced safety measures. Nahed Eltantawy, a professor of journalism at High Point University, South Carolina, told Bloomberg that cultural sensitivity will be paramount for companies wishing to enter the emerging market: “Given that a lot of women will be travelling with kids, any advertising for family cars and vans to help with children in the back would be helpful… they will need to offer advertising solutions that caters to the diverse women in Saudi Arabia.” 23

INSIGHT

An educated workforce At the moment, women make up only around 20% of the workforce in the country and it is hoped that the reform will help to raise this figure. Currently there is still segregation in the workplace, which makes many companies unwilling to hire women. The driving ban should open up this largely untapped labour market as women start to ingress into new territories. One employment company, Glowork, has set up virtual offices, which allow women to work from home. Glowork defines itself as “an organisation dedicated to women recruitment and empowerment in the GCC” and aims to “increase diversity in the Saudi workforce”. In September, it held its fifth annual event on job creation for women under the patronage of Prince Reema bint Bandar Al Saud, Vice President of the General Ports Authority. The event in Riyadh involved over 86 organisations, a conference with students from top Saudi universities, 50 workshops bus companies and a public career fair attended by around 30,000 women. At the 2016 event, 3,600 women were hired through the event which was 24

December 2017

organised to act as a “bridge between female job seekers and the labour market”. Glowork is primed to tap into this burgeoning labour market. It’s likely that transport services such as Uber and Careem will suffer however, and many private chauffeurs could be out of a job. But being able to remove the cost of a driver will help to boost the income of midto-lower-income families, allowing them to contribute to the economy in other ways. There are also benefits for the companies. Careem has expressed interest in hiring female drivers, and has already set up a call centre employing females. According to Abdullah Elyas, co-founder of Careem: “Careem’s mission to improve lives and create jobs is fully aligned with this announcement. In Saudi Arabia, we have the privilege to enable employment for thousands of women by providing them a reliable means to get to work.” Uber has also reacted positively by announcing plans to employ female drivers, though it has not released any details apart from saying it will begin the process to employ women in the Kingdom “shortly” after the lift comes into effect (June 2018).

FROM 22% TO 30% IN 15 YEARS - SAUDI ARABIAâ&#x20AC;&#x2122;S TARGET FOR FEMALE PARTICIPATION IN THE WORKFORCE

INSIGHT

‘THE LIFTING OF THE BAN COULD ALSO SUPPORT SOME OF THE PILLARS OF VISION2030, SAUDI ARABIA’S NEW ECONOMIC OUTLOOK WHICH INVOLVES BECOMING LESS OILDEPENDENT AS IT ADVANCES ITS GLOBAL POSITION’

December 2017

Currently, 80% of Uber rides booked in Saudi Arabia are for women. In 2016, the Public Investment Fund bought a 5% stake in Uber for $3.5bn. Currently, there are discrepancies between levels of education for Saudi women and the amount of women in the workforce, which could be altered as the driving ban is lifted. According to a report for the Washington Post in 2012, despite its oil-based riches, Saudi Arabia was 40th in the world for its per capita GDP. In addition, 34% of women who wished to work were unemployed while the figure was just 7% for men. Of Saudi Arabian people receiving unemployment benefits, 86% of women and 40% of those women hold third-level degree qualifications. Between 2002 and 2012, the number of universities in Saudi Arabia doubled, and this included the world’s largest women-only university, Princess Noura Bint Abdul Rahman University in Riyadh which opened in 2011, and has recently announced it will open up a driving school for women. In 2016, more Saudi women than men graduated from universities in the Kingdom, with 105,494 women graduating as opposed to 98,210 men.

However, this meant an increase in the amount of educated, unemployed women. According to Sara al-Theeb, who works at an associate company of HSBC and was interviewed by the Financial Times shortly before the ban was lifted, her inability to drive is a barrier to career opportunities. “It is challenging,” she explained. “Men have the advantage of driving, whenever there is a sudden visit to a client. I can’t accommodate that.” The driving ban has long been recognised by leadership as an obstacle to women’s employment, with the Labour Ministry having offered women vouchers to use for Uber and Careem, a system which aims to benefit up to 150,000 people by 2020.

Vision 2030 – enacting economic change The lifting of the ban could also support some of the pillars of Vision2030, Saudi Arabia’s new economic outlook which involves becoming less oil-dependent as it advances its global position. According to Mohammad bin Salman Abdulaziz Al-Saud, Chairman of the Council of Economic and Development Affairs, 27

INSIGHT the vision is to advance “our status as the heart of the Arab and Islamic worlds” and increase globalisation for the Kingdom. On the Vision 2030 website, Salman Abdulaziz Al-Saud argues that: “We are not dependent solely on oil for our energy needs.” He states the country’s “real wealth lies in the ambition of our people and the potential of our younger generation… they are our nation’s pride and the architects of our future.” Much of the plan could point to women taking more of a place in the workforce, as Salman Abdulaziz Al-Saud explains: “We are determined to reinforce and diversify the capabilities of our economy” and to create a country “in which all citizens can fulfil their dreams, hopes and ambitions. Therefore, we will not rest until our nation is a leader in providing opportunities for all through education and training, and high-quality services such as employment initiatives, health, housing and entertainment.” Emphasis has been placed on “unlocking the talent, potential and dedication of our young men and women,” and it is also stated that “there are no excuses for us to stand still or move backwards”. A current goal of the vision is to increase women’s participation in the workforce from 22% to 30% over the next 15 years and to decrease total unemployment from 12.7% to 7%, and new reforms will certainly be a key ‘driving force’ behind this change. 28

December 2017

TOP 10

Imports into Saudi Arabia The Middle East is heavily reliant on imports (The total value of imports (CIF) is $599,469bn) and it is Saudi Arabia that brings the most into the GCC with $129.8bn of imports in 2016 largely emanating from Asia. We take a look at Saudi Arabia’s top 10 imports according to www.worldstopexports.com Writ ten by ANDREW WOODS

TOP 10

OPTICAL, TECHNICAL, MEDICAL APPARATUS: $2.9BN (2.2%)

AIRCRAFT, SPACECRAFT: $2.8BN (2.2% OF TOTAL IMPORTS) Saudi Arabia imports of aircraft/ spacecraft was $2.79bn during 2016, according to the United Nations COMTRADE database on international trade. The UAE is by far the biggest importer in this region, annually importing five times the amount of Saudi Arabia, as the region looks to the West to facilitate its airlines. 32

December 2017

Spending in the Saudi healthcare sector was $22.4bn in 2016. The Saudi market for medical devices is estimated at just under $2bn and is growing annually at roughly 10%. Imports represent approximately 90% of the market, with American products accounting for 21% of total imports although Saudi Arabia is encouraging a domestic manufacturing base for these devices and instruments.

PLASTICS, PLASTIC ARTICLES: $3BN (2.3%)

GEMS, PRECIOUS METALS: $2.9BN (2.3%)

The kingdom relies heavily on imports in this sector and to this end PanAsia Pet Resin (Guangzhou) is set to construct a chemical fiber production base in Saudi Arabia with a hoped annual output value of $4.8bn. The base is expected to majorly improve the country’s capacity to produce its own plastics and fiber. Saudi Arabia currently imports the lion’s share of these products from East Asia, which costs time and freight expense.

Saudi Arabia imported $2.9bn worth of gems and precious metals in 2016, primarily led by gold and imitation jewellery, as well as imported gems and precious metals. Saudi imports in this area are primarily from its neighbour UAE which exports pearls, precious stones, metals and coins. Saudi Arabia’s imports of copper and copper articles are worth $672mn and its imports of articles of iron and steel hit $626mn). Raw iron and steel imports are worth $507mn. 33

TOP 10

ARTICLES OF IRON OR STEEL: $4.2BN (3.2%) Saudi Arabia imports of articles made from iron and steel largely emanate from India and China with goods worth over $3bn (2.5%) being exported from the former. Articles made from iron and steel was the only decliner among the top 10 Saudi imports, dropping -5.2%.

IRON, STEEL: $3.2BN (2.5%) Saudi Arabia Imports from China of Iron and steel was US$1.06bn during 2016, according to the United Nations COMTRADE database on international trade, a trend that is likely to continue for the foreseeable future with demand far exceeding supply.

December 2017

ELECTRICAL MACHINERY, EQUIPMENT: $14.3BN (11%) A major supplier of electrical machinery to Saudi Arabia is India – which has a massive trade deficit with Saudi Arabia – providing all sorts of equipment including televisions, audio equipment, boilers and parts all the way through to nuclear reactors.

PHARMACEUTICALS: $4.8BN (3.7%) The Kingdom of Saudi Arabia accounts for 59.4% of the purchases of pharmaceuticals from the Gulf region with industry estimates suggesting a 10% annual growth rate. Per capita spending on pharmaceuticals was approximately $268 in 2016 and is expected to reach nearly $400 by 2020. 35

TOP 10

VEHICLES: $17.7BN (13.7%) The kingdom imported 679,000 cars per year during the last seven years (20052012), at the annual growth rate of 9.5%. The US topped car exporters to the Kingdom for the second year in a row, replacing Japan, which was the number one exporter until 2011. Luxury vehicles account for more than 18% of total imported cars. 36

December 2017

MACHINERY INCLUDING COMPUTERS: US$17.8BN (13.7%) Saudi Arabia primarily trades with the US and China for its computer hardware and IT support systems, although ties with the latter have strengthened. Last March, China and Saudi Arabia signed deals in e Â nergy, culture, education and technology worth $65bn.

Narrowing the gulf in healthcare procurement Written by Fran Roberts Produced by Heykel Ouni

2016 marked the 40th anniversary of the first meeting of the Gulf Health Council, in Riyadh, Saudi Arabia. Today, regular meetings are held to discuss the health issues of concern in the states. Part of the Council is Gulf Joint Procurement programme, which ensures the standardisation of the medicines directory and medical supplies of all specialities across the GCC

he Gulf Health Council is a regional technical specialised organisation with its membership restricted only to the Cooperation Council States, plus Yemen. Within this organisation sits Gulf Joint Procurement programme. “The Council enjoys a legal impartiality and financial and administrative independence,” advises Fatthi Alkathiry, Director at Gulf Joint Procurement. The Health Council of the GCC aims to develop cooperation and coordination among member states in the preventive, curative and rehabilitative health fields, as well as other mutually beneficial activities. The idea of the joint procurement for medicine began in February

December 2017

1976, when the Ministers of Health of the GCC states requested that the Council form a technical committee among the states. The committee’s main objective was to study the possibility of member states benefiting from direct control, like the processes in Saudi Arabia and Kuwait. A second key objective was to standardise the purchase of certain medicines. “The set objective at that time was to study the development of a unified system for the registration and control of medicines and the development of a guide for medicines in the GCC states,” Alkathiry explains. “The Gulf Health Council for Joint Procurement seeks to standardise the directory

S U P P LY C H A I N

Fatthi Alkathiry Director

A leading Procurement Director, currently working with in Gulf Joint Procurement for Gulf Health Council, Mr Fatthi AlKathiry focuses on developing the vision, mission and operational plans for Gulf Joint Procurement. Providing leadership, strategic planning and assurance for procurement administration, AlKathiry acts as the vendor management partner for all the business units, ensuring all relationships are strategically, culturally, and ethically aligned with GHCâ&#x20AC;&#x2122;s mission and values. Throughout his career with GHC, AlKathiry has continuously enhanced the organisationâ&#x20AC;&#x2122;s sourcing, procurement and performance management capabilities by attracting public and private hospitals to become participants in Joint Procurement. With a proven ability to develop, maintain and execute procurement policies, Al Kathiry consistently supports the Joint Procurement mission and meets the stakeholder requirements, facilitating a seamless implementation and adoption of solutions.

w w w. b u s i n e s s re v i e w m i d d l e e a s t . c o m

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G U L F H E A LT H C O U N C I L

“The Gulf Health Council for Joint Procurement seeks to standardise the directory of pharmaceutical devices and medical supplies throughout the Gulf Joint Procurement programme” –Eng. Fatthi Alkathiry, Director, Gulf Joint Procurement

December 2017

S U P P LY C H A I N

of pharmaceutical devices and medical supplies throughout the Gulf Joint Procurement programme, with the controls in place across the GCC member states.”

High-quality medicines With vast potential to impact the lives of others, the Gulf Health Council takes very seriously putting the interests of citizens in the Gulf countries above all considerations. With a growing population in the region, healthcare is set to become even more important. The GCC healthcare market is projected to grow at a 12.1% compound annual growth rate (CAGR) from an estimated US$40.3bn in 2015 to US$71.3bn in 2020, according to Alpen Capital. “The mission of the Gulf Joint Procurement programme is the development of a unified directory for medicines and medical supplies for all specialities, and the provision of high-quality medicines, medical supplies and devices to member states and participating hospitals, to the right location, at the right

time, and from the manufacturers registered with the Central Registration Programme, at fair prices. The ambition of Gulf Joint Procurement programme is to be the benchmark in the provision of standardised procurement services, based on global procurement standards,” reveals Alkathiry. In order to adhere to global procurement standards, Gulf Joint Procurement programme coordinates the process of selection, standards specification, and quantity of pharmaceuticals, medical supplies, and equipment required by Ministers of Health in member states, as well as standardising the preparation of tenders.

Ensuring safety The most prominent services that indicate the extent of progress and modernisation in a country are those services that concentrate on sustained health welfare and safety of the people. To this end, Gulf Joint Procurement programme ensures that all of the medicines it procures meet the highest safety

w w w. b u s i n e s s re v i e w m i d d l e e a s t . c o m

FURTHER, TOGETHER 60% OF ALL DEATHS AROUND THE WORLD ARE CAUSED BY CHRONIC DISEASE.1

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THROUGH MUTUAL PARTNERSHIP AND HONEST DIALOGUE, WE CAN FIND SOLUTIONS THAT BETTER SERVE PATIENTS. Learn more at medtronic.com/furthertogether 1. World Health Organization. 10 facts on ageing and the life course. http://www.who.int/features/factﬁles/ageing/en/. Accessed September 17, 2015. *Organisation for Economic Co-operation and Development 2. World Health Organization. Tracking universal health coverage. http://apps.who.int/iris/bitstream/10665/174536/1/9789241564977_eng.pdf?ua=1. Accessed September 17, 2015. 3. Porter E. A world of rising health care costs. New York Times: Economix blog. http://economix.blogs.nytimes.com/2013/06/27/a-world-of-rising-health-care-costs/?_r=0. Accessed September 17, 2015.

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standards. “We supervise the process of receiving samples and ensure the safety of their use, storage and preparation during the tender stage,” states Alkathiry. The tendering services offered by Gulf Joint Procurement programme are possibly the most integral ones to the success of achieving its mission. “We receive tender documents, and source and prepare schedules of comparison between tenders. Also, we plan, coordinate and prepare meetings of the joint procurement committees,” reveals Alkathiry. “We follow-up on the recommendations of the executive committee and decisions issued by these committees and coordinate with the member states as to the combined quantities required. Finally, we announce the results of the purchase decision and recommendations, and we receive, verify and study complaints and objections concerning tenders, and refer to the supplementary commentaries.”

The factor of time Many may not know that time is

December 2017

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“THE AMBITION OF GULF JOINT PROCUREMENT PROGRAMME IS TO BE THE BENCHMARK IN THE PROVISION OF STANDARDISED PROCUREMENT SERVICES, BASED ON GLOBAL PROCUREMENT STANDARDS” –Eng. Fatthi Alkathiry, Director, Gulf Joint Procurement w w w. b u s i n e s s re v i e w m i d d l e e a s t . c o m

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Eng. Fatthi Alkathiry, Director, Gulf Joint Procurement, taking part on a discussion panel for a healthcare forum the most important factor in the procurement process. “The most important reasons for the success of Gulf Joint Procurement programme is committing to the time of tendering over the next 40 years. The whole tendering process takes around four months, starting from the directory updating meeting and preparation for tender until the tentative notice of award,” explains Alkathiry. “This attracted several bodies, other than the health ministries in the member states, to apply for participation in the Gulf Joint Procurement programme.”

Upgrading the health sector In order to achieve such success, Gulf Joint Procurement programme collaborates with a number of other key players. “Our partners are the ministries of health in the GCC. We have six countries there – Saudi Arabia, Kuwait, United Arab Emirates, Oman, Bahrain, and Qatar. They are members of the Gulf Health Council. Also, we have more than 20 public hospitals like King Fahad Medical City, King Faisal Specialist Hospital in Riyadh, and King Abdullah Medical City in Mecca,” states Alkathiry.

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G U L F H E A LT H C O U N C I L

Fatthi Alkathiry, Director, Gulf Joint Procurement “All suppliers from our programme are our partners also. We have about 18 categories of materials. “The mission of the Health Council is to promote and upgrade the health sector in member states by providing constructive initiatives and responding to the regional and global health issues. We challenge and support the decision-making process, and the health policies with the aim to strengthen the cooperation and integration between the member states, the health sector and among

December 2017

that, achieve the Council objectives. Its values are accountability, professional leadership, continuous development, evidencebased decisions, creativity and innovations, quality, cooperation and coordination, integrity and ethics.” Such partnerships and values have been key to the success of Gulf Joint Procurement programme. “I think we’re not successful without three main key factors – coordination, collaboration and integration,” Alkathiry comments. “Without these

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“THE AMBITION OF THE GULF JOINT PROCUREMENT PROGRAMME IS TO BE THE BENCHMARK IN THE PROVISION OF STANDARDISED PROCUREMENT SERVICES, BASED ON GLOBAL PROCUREMENT STANDARDS” – Eng. Fatthi Alkathiry, Director, Gulf Joint Procurement

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three main factors, the 40-year old Gulf Joint Procurement programme would not be successful.”

business, so if you don’t encourage your people to innovate, you are wasting your resources, I believe.”

Encouraging innovation

Automation for the people

Out of 50 employees within the Health Council, seven employees are serving in the Gulf Joint Procurement programme. Alkathiry strives hard to attract and retain the best staff to ensure the continued success of Gulf Joint Procurement programme. “I create a workspace where every employee is engaged by the work they do and inspired by who they work for. Without good staff you will not achieve your goal. The management structure achieves this by encouraging everyone to innovate. “It doesn’t have to be earthshattering. It can be a small change, but innovation equals improvement. Innovation must streamline, must enhance, must endure. Innovating our business by looking for ways to reduce expense, speeding up or streamlining processes, improving customer interactions and experience, making our products or services better. Innovation drives

Such innovation is central to Gulf Joint Procurement’s future plans. “I’m working now with my team to automate our processes. There are plans in the future, to implement a new system for the Gulf Joint Procurement programme. Currently we have requirement to automate our process, and link with the GCC countries and the suppliers to make quotations align, and to organise everything historically. The second thing - there are plans for expansion of the service procurement to market our services to the private hospitals to join in our programme,” Alkathiry concludes.

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SMART ABOUT DIGITAL Written by Dale Benton Produced by Stuart Shirra

Bank ABC has been a leading provider of banking and financial services in the Kingdom of Bahrain for more than 35 years, and has embarked on a digital transformation in order to embrace the changing financial landscape

n the global financial landscape of today, one of the biggest keywords is digital and digital transformation. More and more organisations, companies, banks and financial institutions are transforming their entire processes both internally and externally to embrace the ever-growing demands that a digital market brings with it. Bank ABC is an international bank headquartered in Manama, Kingdom of Bahrain. Founded in 1980, the bank has firmly established itself as a leading provider of banking and financial services throughout the Arabian Gulf and across its footprint in the Middle East, North Africa, Europe, the Americas and Asia. Naturally, on its journey towards its market leading presence today in 2017, the company has had to undergo its own digital transformation in order to continue to be the bank of choice. This is an ongoing change, but where ABC Bank differentiates itself is in its approach to the very understanding of digital banking. â&#x20AC;&#x153;Digital banking became a go-to word

December 2017

TECHNOLOGY

Stuart Rennie

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BUILDING THE NEW OPERATING SYSTEM FOR FINANCIAL MARKETS R3 is an enterprise software firm working with over 100 banks, financial institutions, regulators, trade associations, professional services firms and technology companies to develop Corda, its distributed ledger platform designed specifically for businesses. R3â&#x20AC;&#x2122;s global team of over 140 professionals in nine countries is supported by over 2,000 technology, financial, and legal experts drawn from its global member base. R3 recently announced the successful completion of the first 2 of 3 tranches in a Series A fundraise valued at USD 107 million. Corda is the outcome of over two years of intense research and development by R3 and its members and meets the highest standards of the banking industry, yet is applicable to any commercial scenario. It records, manages and executes institutionsâ&#x20AC;&#x2122; financial agreements in perfect synchrony with their peers, creating a world of frictionless commerce.

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BANK ABC

around 2013, but everybody has a different understanding of what is meant by digital banking,” says Stuart Rennie, Group Head of Information Technology. “Our digital strategy at ABC is not only about our customers and providing more digital services for customers, but includes the organisation itself - internal touchpoints with staff, customers, vendors, outsource providers and of course, how the Internet of Things will change our processes.” For Rennie, it’s very much centred around the idea of an agile approach to developing the organisation’s internal applications and processes, and not just embracing digital banking for Number of employees digital banking’s sake. at Bank ABC Through the transformation, Rennie is overseeing a digital strategy that will enable Bank ABC to become quicker and faster in terms of its capabilities to rapidly develop new services and applications. Rennie describes this as “packaging smaller sets of functionalities”, developing and delivering these functionalities in a series of “sprints”. Despite the company seeing itself in the infancy of this digital strategy, the agile approach has been extremely successful and it will look to replicate this approach in

1K-5K

December 2017

TECHNOLOGY

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Leveraging centralized IT for multijurisdictional regulatory reporting and internal decision-making The Middle East region offers unparalleled growth opportunities for banks – as well as presenting them with some particularly tough risk management and regulatory reporting challenges. Moody’s Analytics currently serves more than 130 financial institutions regionally, with its market standard enterprise risk, professional services, training & certification and credit research solutions. The company has now been helping customers in the Middle East and North Africa region to deliver and maintain Basel compliance for more than twenty years. Moody’s Analytics is a strategically important partner to Bank ABC, with a relationship that spans over a decade. It has helped Bank ABC to meet evolving regulatory reporting requirements from multiple regulators, using a centrally deployed technology architecture that serves users in various locations. The Basel reporting requirements cover credit, market, operational, and liquidity risks.

“The Moody’s Analytics centralized architecture helps Bank ABC deliver gains in efficiency and optimize operational costs.”

approach allows financial institutions to embed financial spreading and risk rating within their credit workflow processing, for maximum efficiency gains together with reduced operational costs. IFRS 9 compliance More recently, many Middle East banks have embarked upon their IFRS 9 journey to meet the revised accounting standard on expected credit losses. IFRS 9 projects require significant data for modeling purposes, and computational power for the calculation of lifetime credit losses. Moody’s Analytics augments banks’ internal data with extensive credit risk and macroeconomic data to assist in compliance with the new standard, supporting the automation and workflow of expected credit loss calculations and disclosure reporting. To maximize the return on investment in its technology, Moody’s Analytics provides customized training programs to assist banks in unifying their credit culture across the enterprise. The program ensures that staff are equipped to make optimal use of technology, providing them with the appropriate skills for their roles.

- Stuart Rennie, Group Head of IT, Bank ABC

This program evolves with policy and underwriting changes. In addition to enabling banks to meet regulators’ requests in a timely and comprehensive fashion, the IT infrastructure and training implemented by Moody’s Analytics supports internal decision-making processes. In pursuit of this objective, Moody’s Analytics works closely with its customers’ senior management to align the programs with each bank’s policies and risk appetite framework.

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“Digital banking became a go-to word around 2013, but everybody has a different understanding of what is meant by digital banking” – Stuart Rennie, Group Head of Information Technology

TECHNOLOGY

other areas of the business. One of the biggest challenges of any form of digital transformation is ensuring there is always a business case first, and not simply looking to digital just because your competitors are. Striking this balance comes down to an understanding of the market and keeping a clear eye on the business case or problem that can be solved through digital. “There’s a lot of hype around digital and other technologies such as artificial intelligence, distributed ledger technology, crypto currencies right across the market,” says Rennie. “But at the end of the day, we need to keep asking ourselves; how is this going to benefit the customer? The Bank? And why have existing technologies not been successful previously? Many times, the real issues are not with technology.” One such example of this that Rennie points to is blockchain, arguably one of the biggest buzzwords across the financial industry right now. As more and more organisations began

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“There’s a lot of hype around digital and other technologies... But at the end of the day, we need to keep asking ourselves; how is this going to benefit the customer? The Bank? And why have existing technologies not been successful previously? Many times, the real issues are not with technology” – Stuart Rennie, Group Head of Information Technology

to discuss and build prototype solutions based on blockchain, it brought about a level of pressure to those companies that did not. “Naturally, people are going to want to know what your blockchain strategy is if competitors are talking it up,” Rennie says. “But really, it’s not an IT question, but a business question. It’s about understanding if there is an opportunity, existing or new, that digital or blockchain, etc. can now help to resolve. Even then, is it feasible and do the numbers stack up? If these stars are aligned, it is time to move … and fast!”

No transformation journey can be completed alone and, for Rennie and Bank ABC, establishing key strategic relationships both internally and externally has and will continue to be critical. Rennie says that an organisation is nothing without the people that make it up. “Systems may help you become more efficient in terms of overall cost and operations,” he says. “But essentially everything comes down to relationships with people, managing those relationships and partnerships with a long-term strategic view.” In a digital landscape, one that will

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BANK ABC see the implementation of new systems and ways of working, there is an element of risk involved that is inescapable. This approach to key relationships and being smart about the partners that Bank ABC selects to work with that allows the company to navigate this risk and collaborate successfully. “We have an extensive record of long term relationships with banking application partners such as AFS, Unisys, Finastra, Moody’s Analytics and technology providers such as Microsoft, Almoayyed Computers, GBM, and Batelco. The new digital requirements more recently have required establishing close ties with BackBase and R3.”

1980 The year Bank ABC was established

December 2017

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“Systems may help you become more efficient in terms of overall cost and operations. But essentially everything comes down to relationships with people, managing those relationships and partnerships with a long-term strategic view” – Stuart Rennie, Group Head of Information Technology “We are always looking for partnerships that are centred around trust, open dialogue and a synergy between our ambition and their capabilities to help us get there,” says Rennie. During the digitisation of an organisation, there can and are often casualties in terms of losing staff. Heading up the group’s IT team, Rennie is a firm believer that undergoing such a transformation should excite anyone in IT, as it presents the perfect opportunity to create new challenges, solve new problems and access new technologies. “Working in IT, particularly within

the current environment of this digital transformation process, if you feel you’re being challenged and you have work hard for something, that’s much more gratifying than it being handed to you on a platter,” he says. “That’s what we’ve felt here. A personal responsibility to systems. We’ve been pushed and, when issues are encountered, we’ve taken ownership and endeavoured to overcome them. That is difficult to achieve if you outsource ownership of IT during these transformations.” Having worked in IT for more than 20 years, Rennie maintains a very hands-on approach to IT, one that he feels is critical from top to

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bottom in digital transformation. “You need to roll your sleeves up and get involved,” he says. “Half of our management team’s time is spent on our systems, with the other half on people and process. There’s a real appetite for continuing to learn

and leverage the systems here. “People feel challenged and are encouraged to push themselves, which for me is crucial towards achieving success as we continue to navigate this everchanging digital space.”

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Moammar Information Systems Integrating an unrivalled IT legacy that lasts Written by Dale Benton Produced by Craig Daniels

Moammar Information Systems is embarking on an ambitious journey to become the IT integration solutions partner of choice throughout Saudi Arabia, recruiting Ziad Mortaja to steer this vision

s a provider of IT systems integration solutions founded in 1979, Al Moammar Information Systems Co. (MIS) has continuously evolved its operations in order to sustain its position as one of the most efficient and competitive diversified companies throughout KSA. Earlier this year, MIS welcomed Ziad Mortaja as the company’s new General Manager. Mortaja brings with him years of experience in Schneider Electric, Hewlett Packard and Cisco, which will prove crucial as the company embarks on an aggressive growth strategy over the next decade “My experience working with the large internationals will help inform my decision making with MIS, as we build an organisation and evolve

December 2017

MIS to become a stronger systems integrator throughout KSA with international standards,” he says. MIS is made up of six divisions with key areas of focus; solutions, security, IT services management, systems, networking and operation and maintenance. It is this diversified portfolio that has allowed MIS to develop partnerships with some of the largest technology providers operating in the Middle East, including Oracle, Cisco, HPE, BMC, Microsoft and many others. “This mixture and depth of our portfolio allows MIS to provide complete solutions to our customers,” says Mortaja. “We target with our six divisions large and strategic projects as we have the capacity and the capability to take on those projects.”

ENERGY

ZIAD MORTAJA MIS General Manager

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This capability is solidified through the company achieving the highest Saudi Government Classification Certificate, a prerequisite to be able to bid and execute large scale IT projects and services in the kingdom, a true reflection of the company’s credibility in the market. Working with such largescale major clients within its portfolio, MIS thrives to develop and foster the relationship with these clients in order to achieve a solution offering that is of benefit to both MIS and the technology provider.

December 2017

“Every year we build an operational business plan jointly with our partners, where we agree on focus markets, targets and investment areas,” says Mortaja. “MIS has the capabilities and the skills to address all the needs across all the elements of the IT value chain, from infrastructure, application operation and support.” MIS has worked with some of its biggest clients for more than 30 years and as the IT infrastructure space has evolved, the company has worked closely with these clients to

ENERGY

continue to provide them with the the marketplace and within their own most effective services and products, technology creation space. These rather than leaving them to navigate relationships essentially formulate our the changing landscape alone. business plans,” says Mortaja. This relationship also In the IT integration works both ways, as solutions space, technology and increasing attention is innovation drives this being turned towards transformations’ data, data storage, close working business intelligence with clients such and, consequently, The year MIS as Microsoft and data security. As was founded Cisco allows it to technology continues develop its solutions to redefine the market, in alignment with that. Mortaja is keen to stress that “We are always communicating and no technological transformation can engaging with our clients, and this be effective without the company’s informs us as to what is happening in most important asset, its people.

1979

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M I S ( A L M O A M M A D I N F O R M AT I O N S Y S T E M S )

MIS strives to attract, develop and, more importantly, retain the highest level of human capital in order to be a market leader. “As a company, our human capital is part of our entire development ethos,” says Mortaja. “Every time we identify a new skillset that’s required, or a new technology element we focus our investment plan around how we can train our people and develop them to be the very best they can be for the company and for the client.” Due to the changing nature of the market, having a skills gap can be inescapable at times and MIS works closely with what Mortaja describes as “extended partnerships” that provide it with resources that enable the company to learn and provide specialised services. “We assess our core competencies with our own staff and through

December 2017

our extended reach to a wellestablished network of partners,” he says. “It becomes a combination of both homegrown and extended reach in order to continue to deliver to client expectations.” MIS has a vision to become the trusted IT partner for some of the largest projects in Saudi Arabia, but to get there, Mortaja understands that sometimes it’s not about the destination, rather the transformational journey that represents the one key success for the company. “For me, success is a journey not a destination,” says Mortaja. “My role is to build on more than 30 years of success. We want to be the best for our customers, the best for the company, for our employees and for our shareholders, and with that, it’s a journey that must not end.”

ENERGY

“We want to be the best for our customers, the best for the company, for our employees and for our shareholders, and with that, it’s a journey that must not end” – Ziad Mortaja, General Manager, MIS

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Enriching customer experience,

differently Produced by Stuart Shirra

The marriage of finance and technology has brought in a sea change in the financial services industry. A new creed of fintech enterprises, born-on-the-web and riding the new digital wave, are disrupting the financial ecosystem with out-of-the-box ideas that focus on enhancing customer experience. Customers, on their part, are increasingly shifting towards digital channels that provide convenience and value. Their loyalties are with the meritorious

oney transfer seems to be the most impacted segment by this new innovative digital wave. In this scenario, will traditional service providers get to surf and stay afloat? Will they stay relevant? This brings us to UAE Exchange, a leading money transfer service provider, constantly in news with its recent foray into the fintech segment. It won the Emerging Digital Leader Award at the recent Digital Leader Awards ceremony held in Dubai, UAE. The fact that a 37-year old traditional money transfer brand won such an award, in spite of its long legacy, caught our attention. Business Review Middle East sought to understand how UAE Exchange Group serves as an antithesis of organisational gravity.

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A financial conglomerate UAE Exchange is part of a global financial services group serving more than 15mn customers. The group handles 6.5% of the global remittances and 7.1% of foreign exchange through two category leaders â&#x20AC;&#x201C; UAE Exchange and Travelex â&#x20AC;&#x201C; in the group. Along with the two brands, the group is home to three others: Xpress Money, an instant money transfer brand; Remit2India, an online money transfer portal; and Ditto Bank, a fully digital bank regulated by ACPR in France and the ECB. The other services offered by the group include prepaid cards, salary disbursal solution and bill payments. Additionally, the group has banking licenses in Brazil, lending

TECHNOLOGY

Promoth Manghat CEO Promoth Manghat has been a champion of innovation in business since two decades, bringing out-of-the-box solutions in finance, strategy, product development, marketing, mergers and acquisitions and digital space, transforming UAE Exchange group into a truly global entity. The past three years witnessed Manghat taking great strides in the inorganic growth path of the group with critical investments and acquisitions. He deftly handled the complex acquisition process of Travelex, the world’s leading Foreign Exchange specialist and Remit2India, the online money transfer portal platform apart from acquiring a series of businesses in South Africa, Singapore and Brazil, enhancing its global footprint. Today with five top notch brands – UAE Exchange, Xpress Money, Travelex, Ditto Bank and Remit2India – the group has emerged into a globally leading conglomerate that brings immense value to its over 15mn customers worldwide. As the group CEO, his digital vision ensured that the group partnered with various Fintech start-ups; is an active participant in various incubators in association with the likes of DIFC, ADGM, New York University etc.; and has also made significant investments in start-ups backed by the highly potent blockchain technology. Manghat’s overarching principle of excellence has helped the brand firmly root itself in the labyrinthine ways of the money movement industry. As an acknowledged expert and thought leader in the money transfer, fintech and financial inclusion domains, Manghat is a sought-after speaker at industry forums and conventions. He is a regular contributor to various industry and business publications and is a keen commentator on technology innovation in financial services. Manghat serves as a corporate mentor to some of the leading start-ups being nurtured under UAE Exchange’s institutional partnerships. He also serves on the World Economic Forum’s Global Steering Committee for Financial Inclusion that seeks to drive sustainable financial inclusion through digital channels.

UAE EXCHANGE GROUP

“Innovation has played a critical role in our success story. The culture of innovation is enriched by the strong values of integrity, commitment, empowerment and care” – Promoth Manghat, CEO

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TECHNOLOGY

operations in India and other markets. From its modest beginnings in 1980, UAE Exchange has come a long way. The group completed the acquisition of Travelex in 2015, followed by Remit2India, the portal for online money transfers to India. Asides this, the group has also made a series of investments in new age fintech start-ups.

Early adopters The growth trajectory of the brand has always moved forward, backed by its innovative mix of products and services clubbed with excellent customer experience. From the very beginning it has been innovative with products like FLASHremit, the instant account credit facility, and gocash, the multi-currency prepaid card, among others. UAE Exchange has been progressive in its journey because of the aggressive investments made in technology. One of the early adopters of technology for process automation, UAE Exchange was among the first to build a large in-house IT function that engages in technology innovations, process and product enhancements.

Along with the internal technology prowess, the brand also partners with experts like SAP, SunGard and Nice Actimize to enhance customer service, treasury and compliance functions, respectively.

The digital journey Promoth Manghat, CEO of UAE Exchange Group, believes that it’s the culture of innovation and entrepreneurship that has placed the group in a higher league. “Innovation has played a critical role in our success story. The culture of innovation is enriched by the strong values of integrity, commitment, empowerment and care. Currently, we are strengthening our service offerings using latest technology. Earlier this year, we launched our contactless wearable for gocash card in the UAE, the first ever company to launch a contactless wearable in the region under this category. This was followed by gocash app and the much-awaited online money transfer licence in the UAE, which is already available in 10 other countries.”

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UAE EXCHANGE GROUP

Fintech partnerships Understanding the dynamics of business, the group is investing heavily towards bringing together the right technology and partnerships. Detailing it further, Manghat says: “We have earmarked $250mn for digital investments. We are also an active participant in the fintech ecosystem, associating ourselves with accelerators, incubators, startups and academia in Abu Dhabi, Dubai and Bahrain in Middle East; India, Singapore and China in Asia; USA and the UK.” The group is committed to nurture and support fintech innovation. This commitment is backed by strategic partnerships and investments with startups. It has collaborated with various fintech start-ups, complementing experience and strategic investments with their fresh ideas to bring the best to customers. “We have invested in a series of enterprises including Loyyal on Blockchain, Sywch on virtual gifting, Souqalmal, a marketplace aggregator, and others,” informs Manghat. Today the group is collaborating

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TECHNOLOGY

UAE Exchange has increased its customer base from 6mn to 15mn w w w. b u s i n e s s re v i e w m i d d l e e a s t . c o m

TECHNOLOGY

with some of the leading global fintech entities and multiple startup incubators to further its digital ambitions. It has associated with the likes of New York University’s StartAD, ADGM and the DIFC Fintech Hive to transform the fintech landscape regionally. Along with it the group has also built a state-of-the-art DigiLab at its global headquarters in Abu Dhabi, which is an innovation window showcasing the group’s digital assets.

Retail, a vital touch point “Investments on digital doesn’t mean that our focus on retail has wavered,” Manghat points out. Currently the group has direct presence in 45 markets, while UAE Exchange and Travelex together have around 2,500 outlets globally. This, coupled with the complementary

synergies that Travelex brings on board, multiplies technological prowess and economies of scale exponentially. Meanwhile Xpress Money, its instant money transfer arm, has presence in 160 countries with 200,000 agent locations. Speaking on the importance of retail, Manghat says: “We cannot overlook the criticality of our physical presence as a brand nor the impact of this customer touch point. Hence retail will continue to feature at the top of all our plans. Meanwhile retail is strongly transforming from being hi-touch to hi-tech and we are emerging into a sort of an aggregator of payments and bringing a differently enriching customer experience. To further enhance our global footprint, we have also acquired a series of businesses in South Africa, Singapore and Brazil.”

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Mashreq Bank and the science of finance Written by Nell Walker Produced by Stuart Shirra

Sandeep Chouhan, EVP – Group Head Operations and Technology, describes the ways in which high-level technology has kept the 50-year-old business at the top of its game in the UAE

ashreq Bank, the market leader in banking innovations in the UAE, is celebrating its 50th Year in 2017, having begun operations as Bank of Oman in 1967. Over the past five decades, Mashreq has been serving residents and businesses in several countries tirelessly, never ceasing in its pursuit to be the most relevant and technologicallyadvanced business it can be. With a background in mechanical engineering as well as banking, Sandeep Chouhan, EVP – Group Head Operations and Technology, is best-placed to bring his wealth of expertise into Mashreq. He has been with the bank since early 2015, after holding CIO and COO roles for over 30 years with the likes of Morgan Stanley, Barclays Bank,

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and Citigroup. In his role, Sandeep leads the global transformation of Mashreq’s Operations and Technology across its international footprint. Chouhan’s current responsibilities include the development of business transformation strategies – something of a strong suit for him, as it has become the backbone of his working life. “My ability to transform businesses is the key differentiator I have based my career on,” Chouhan explains. “My latest role in Mashreq is to lead a digital transformation across its global footprint with a core focus on the Middle East region, a place that is experiencing not just accelerated growth, but hyper growth.” According to Chouhan, technology-led transformations are the only truly sustainable type

BUSINESS SERVICES

Sandeep Chouhan, EVP â&#x20AC;&#x201C; Group Head Operations and Technology

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of transformation, but they still come with their own challenges. Within a well-established bank like Mashreq, the transformation has to be not just the best, but also the most seamless, and that begins with asking a few vital questions. “The challenge is twofold. First, is the technology truly industrial?” Chouhan ponders. “You have to catch it when it is on the upswing of the wave, and being able to determine the industrial nature of these technologies is the first step. Once you’ve established that, can it scale? Is it secure? Does it have longevity? “Second, you must think about your choice of partners and resources. A lot of technological innovation takes place through third parties, so the partners are the ones making the innovations, and as an end-user bank you want to partner with the right company, the right products, the right geographic reach, and aligning views.” This is clearly a structure which works for a company that is often regarded as the most innovative bank in the UAE. Established by entrepreneurs, the pioneering spirit

of Mashreq’s founders remains vibrant, even as – after 50 years – the business prepares to transform again. “The entrepreneurial spirit that represents Mashreq is forms our core DNA,” says Chouhan. “For the next 50 years, we want to continue to be the leading light in this transformative new age of banking for the UAE, the GCC region and the world.” Chouhan is building on a wellestablished and well-loved heritage, but he and the business are confident and comfortable doing so, as constant evolution is part of the environment which Mashreq has created for itself. “It allows for this innovative spirit to blossom into something we cherish deeply, and we protect that hard,” Chouhan says. “Interestingly, anybody who comes to the region and is looking for an innovative partner gravitates towards Mashreq because they know we have this heritage, this hunger, this open-mindedness to take up a very disruptive and transformative business model.”

The Digital Workforce While the banking industry has

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HH Sheikh Mohammed Bin Rashid attending the 50th anniversary celebration for Mashreq

historically adopted a very human approach to business i.e. with a heavy reliance on people to perform routine processes, Mashreq’s digital DNA does in fact drive every choice the business makes – even the creation of what Chouhan calls his ‘Digital Workforce’. Even with his long technological background, Chouhan appears endlessly astonished by the speed at which all things digital change, and he chooses to embrace it. From the dot com and World Wide Web era, to the rapid evolution of mobile phones,

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to the ability to house terabytes of information in tiny containers, the last 20-30 years have enjoyed the quickest digital change in history. Likewise, robotics has continued to advance. Specific to banking, the first robots ever introduced were ATMs. As technology and banking continued to collide throughout his career, Chouhan’s question was: where else could robotics be applied? “We’ve seen the arrival of basic robotic tools performing repetitive tasks, to robots with natural

BUSINESS SERVICES

“Digital transformation is unavoidable. It’s happening because multiple technologies are rapidly evolving all the time” language processing, to natural language generation, and cognitive capabilities,” says Chouhan. “Digital transformation is unavoidable. It’s happening because multiple technologies are rapidly evolving all the time. Mashreq is arguably the pioneer in the region to deploy robotic capabilities at multiple levels.” “We believe the advancement we have seen in robotics capabilities from basic manual tasks to intelligent predictive tasks is happening because technology has bolted on pieces of

different capabilities. The concept of a digital workforce emerged at Mashreq slowly, because as we began to roll out repetitive manual processes the robotic elements were running, we realised that like a human worker, the digital worker also needs supervision. It needs to be checked for accuracy, for productivity, it needs training and retraining – just like a human worker. “With a digital worker you can skill-up with ease – a simple upgrade – but it’s still a worker. The concept of supervising these

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technologies was at the heart of us acknowledging the digital workforce.” Of course, Mashreq maintains a human workforce who, free of more menial tasks, are available to customers to answer in-depth enquiries, but the main advantage of the digital worker is speed. This is what customers value most, according to Chouhan; wait time and task processing time are reduced, and so any misgivings they may have about leaving their finances in the hands of robots are left by the wayside.

Agility as a service This ecosystem that Mashreq

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has developed runs on an agile methodology – a disciplined, collaborative business process that makes approaching high-end technology more manageable. This extends, too, to the partner ecosystem whereby Mashreq allows partners to co-innovate. “The partners should feel that they are getting something in return, and upgrading themselves through our partnership,” says Chouhan. “Cyber security is also part of the ecosystem. The space, the depth, and the intensity at which transactions are getting digitised – and therefore the

BUSINESS SERVICES

Mashreq’s Robotic Command Centre vulnerability involved – is increasing all the time, so you need to get the right cyber architecture in place at the foundational level of the journey.” Tackling multi-dimensional threats is a constant battle for a business like Mashreq, but as a bank which boasts many firsts in the region – the first to introduce ATMs and credit cards, to take on AI and use its incredibly advanced tools – it is better positioned than anybody else to tackle whatever digital transformation may throw at it. “Mashreq is a pioneer, and we have close to 40 processes run by robots

performing 100,000 transactions a month, plus a robotic command centre to supervise the technology,” Chouhan states with pride. “We have many ambitious plans to grow across various areas, and revolutionise the customer experience. Half the battle is in making the customer happy, and the winner will be the institution who is able to solve the service experience game. “The customer remains king in the game of service.”

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Procurement transformation at Lebanonâ&#x20AC;&#x2122;s oldest university Written by Fran Roberts Produced by Heykel Ouni

The American University of Beirut (AUB) has been a pioneer for over 150 years. AUB became a co-educational institution in 1924, some 50 years before Harvard, Yale, or Princeton University. Today, one of its alumna, Hanan Itani Ramdan, is helping to drive transformation within the university’s procurement operations

he American University of Beirut is the oldest university in Lebanon and one of the oldest in the region. Founded in 1866, it bases its educational philosophy, standards, and practices on the American liberal arts model of higher education. It is a teaching-centred research university with around 800 instructional faculty staff and a student body of around 8,000 students. “I joined AUB in 1989 as an Assistant Director of Purchasing

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with no experience in the field. It was difficult for the team to accept me as their supervisor being a young, inexperienced female,” explains Hanan Itani Ramadan, Director of Procurement and Contracts Administration. “However, I was able to prove myself by revamping the procedures and practices and introducing efficiencies into the process. As a result, I gained the trust and respect of the team, users and suppliers.” Despite this challenging start, Itani became an expert in her field. In 2002, she was promoted to the position of Director of Purchasing. “I played an important role in adopting the latest technologies to automate the transactional process and was able to keep up the performance of the department. In 2013, I started driving the transformation and restructuring process of the department and was promoted to Director of Procurement and Contracts Administration,” she reveals.

The ultimate goal The role that Itani and her department

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play is integral to the operations at the department, Itani has witnessed AUB. “As a department, our ultimate how procurement has changed at goal is to provide a centre of expertise, AUB over the years. “Purchasing provide superior value to our university as a function was perceived as users and optimise the performance an accessory component in the of the organisation. Today we are university and was merely playing engaged with the users and the a servicing role,” Itani comments. faculty members from the initial Since early 2013, major changes have phases of when they identify their been introduced to the department needs,” Itani advises. “We are to address the challenges, providing to them guidance such as the need to and support through manage and control The American University all the phases of the the large database of Beirut is the oldest purchasing process.” of the suppliers university in Lebanon and Indeed, the and cope with the one of the oldest in the concept of optimum rapidly changing region. It was founded in value for money has technological become embedded advancement in everyday decisionin the field of IT, making management consolidate and centralise for all aspects of AUB contracting activity, and expenditure. “Our focus shifted develop a customer service section. towards improving the quality and “In order to address all these timeliness of our services, installing needs, we decided to restructure best practices, and increasing the organisation of the department,” awareness and use throughout Itani explains. The transformation the university,” remarks Itani. started by changing the name of the department from purchasing Major changes to procurement and contract With 28 years’ experience within administration. “The change

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“It was difficult for the team to accept me as their supervisor being a young inexperienced female. I was able to prove myself through revamping the procedures and practices and introducing efficiencies into the process” – Hanan Itani Ramadan, Director of Procurement and Contracts Administration properly reflects the expansion of functions, evolution in the roles of the transactional base, and a more customer-focused type of operation,” she adds. “Later on, in early 2014, the first reports that were produced showed a positive impact on the sourcing process in terms of cost saving and in terms of timeliness of the operation.”

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The increased customer focus has certainly been of core importance to the department’s operations. “One of the key elements in improving our cost saving margin is innovation. Learning about users’ needs early in the process helps us better understand the requirements and research the market for economical alternatives,” explains Itani.

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Investing in training To achieve such transformation in procurement, significant investments have been made in the department’s staff. “In the department, we’re always investing in training and upgrading the skills of the team because we depend on the communications, knowhow and expertise of the team in procurement,” explains Itani. There are 22 employees within the team, spread across five units – supplier risk management, compliance and customer support, international sourcing, local sourcing, and contracts administration. Such investment in the team helps

to make AUB an attractive employer to the best candidates within the field. AUB has been ranked as one of the most attractive employers in the world by the 2018 QS Graduate Employability Rankings, due to its excellent reputation, benefits, and motivating work environment. AUB was also ranked the top university in the Arab region by the international QS University Rankings for the year 2017/18. “I would like to emphasise the importance of the leadership’s attention to and support of our vision and talent as a department,” states

Hanan Itani Ramadan

Director of Procurement and Contracts Administration Hanan Itani Ramadan is the Director of Procurement and Contracts Administration at the American University of Beirut. Over the past 28 years she has assumed various roles of increasing levels of responsibility in procurement, having started as Assistant Director of Purchasing in 1989, promoted to Director in 2002, and then Director of Procurement and Contracts in 2013.Currently, Itani manages a team of 22 members responsible for all procurement activities, strategic sourcing, contracting, and supplier management. While at AUB, Itani played an essential role in streamlining the procurement processes and implementing an e-procurement system where 90% of the transactions have been automated. Itani first earned a Bachelor Degree in Environmental Health, followed by a Masters Degree in Health Care Administration from the American University of Beirut in 1987, and received her CIPP in 2015. She serves on several administrative committees at AUB and is a NLPA member.

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Itani. “This played a major role in the success of the transformation. If we didn’t have the leadership, attention, and support we would not have been able to achieve this transformation.”

A bold future Having celebrated a major milestone last year, AUB as a whole is already focusing on the future. “This year, AUB launched a campaign called the Boldly AUB Campaign. This campaign looks ahead to the next 150 years because last year we celebrated our 150-year anniversary and now we’re looking ahead, we’re planning for the next 150 years. We have a long list of plans, expansions, and investments,” Itani notes. The five main components of the campaign are education and research, healthcare, innovation and entrepreneurship, community relevance, and sustainability. “AUB looks forward to creating new micro-economies, contributing to the flourishing of SMEs in Lebanon and the region,” she concludes.

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The Tetra Pak

IMPACT Written by Nell Walker Produced by Craig Daniels

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With innovative technology, sustainability, and a focus on people, Tetra Pak is thriving in Saudi Arabia. Managing Director Niels Hougaard elaborates on why

he name Tetra Pak is synonymous with innovative packaging solutions and processing technologies for food and beverages around the globe. In the early 70s, Tetra Pak started its major installation in Jeddah, Saudi Arabia. Today, the converting factory delivers around 10bn packaging products to food and beverage companies a year. Overseeing the business is Niels Hougaard, Managing Director of Tetra Pak Arabia Area and Cluster Leader, Sales Management Greater Middle East and Africa (GME&A), Having worked in the company 22 years, in roles from Product Manager to Sales Director and beyond, Hougaard is well-placed to take the helm at Jeddah, where key business drivers are end-to-end

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customer service and innovation. “Tetra Pak has built its business model around three different services: providing packaging materials, providing packaging and processing equipment, and providing technical services to support those,” says Hougaard. “These are the three pillars of our business, and we are building the food industry in this region by providing this service. “In Tetra Pak Arabia, we focus on driving innovation together with our customers; we are the first in the world at many things we do, bringing new ideas and solutions to our customers to support their growth as well as investments to our factories. Tetra Pak’s large footprint in Saudi Arabia ensures that its impact on the industry is heavy-hitting, and that it is ahead even of many of

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the company’s other international facilities. In 2015, the Saudi factory was fortunate enough to become certified by the Japanese Institute of Plant Maintenance (JIPM), one of the top manufacturing standards in the world. It was also awarded the Factory of the Year achievement in 2013, and is certified to ISO 14001 standards for its sterling work in sustainability and energy management. “We kept applying for certifications at higher and higher standards,” Hougaard explains. “We’ve reached a level of manufacturing excellence that sets us apart even in a global Tetra Pak has the largest aseptic packaging factory in the region

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context, thanks to a high level of expertise and the passion of our team. It differentiates us in the region.” This arm of Tetra Pak boasts the largest aseptic packaging factory in the region and Tetra Pak’s largest straw factory in terms of volume produced, and in the nearly 50 years of existence Number of in Saudi Arabia, the nationalities working packaging produced for at Tetra Pak’s the food industry also Jeddah facility been used in Europe, parts of the Americas, and the Far East. The company specialises Specialising in dairy, drinks, and in packaging for dairy, liquid foods, Tetra Pak packaging is drinks and liquid foods light and economical, offering high levels of protection and ease of use. Tetra Pak looks to industry trends for working out new ideas, and a current project is looking at more convenient packaging solutions. Hougaard says: “We are now providing young consumers with new

50+

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developments of packaging that are environmentally friendly and easy to carry on-the-go. Not just dairy or juice, but light meals too, to open and consume immediately without the need to refrigerate. The market is moving towards convenience, and we are ready to provide the technology that meets the customer demand. “We’re always keen to bring in new ideas to push the value of continuous innovation,” Hougaard continues. “We bring new solutions to the market at global and local levels. Recently, we have adapted our factory

“We’ve reached a level of manufacturing excellence that sets us apart from other factories, thanks to a high level of expertise” – Niels Hougaard - Managing Director of Tetra Pak Arabia Area

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in Jeddah to meet new and even more consumer-friendly packaging solutions, based on technology that we used to import from Turkey. With this technology update we can produce it here. With this we became more effective in serving our local customers in a faster and cost-effective manner. So, itâ&#x20AC;&#x2122;s always about bringing in new ideas and bringing new concepts to work â&#x20AC;&#x201C; for our customers, the

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10bn+ packs approximate volume of food and drink packaging units made by Tetra Pak each year

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Arabian consumers and for ourselves – to be able to perform better.” Tetra Pak’s innovation is as much about technical solutions as packaging solutions. One of the company’s latest innovation is HoloLens, which allow our technical experts to work remotely with customers on diagnostics and repairs. Service engineers use Microsoft’s HoloLens devices to guide customers

along the process, ensuring positive relationships and a technological edge. “We work with our customers as partners,” says Hougaard, “and we always seek to grow together with them. We provide them with leading edge technologies to help them maintain their competitiveness, and at the same time we develop ourselves and

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keep Tetra Pak Arabia an exciting place to work. Of course, it is through our Tetra Pak’s people we make it happen. With around 15 nationalities working together at the Jeddah facility, the company’s motto is ‘diversity is our strength’, and it believes that the right people with the right qualifications are best suited to grow with the business as it does. Working with partners also extends to Tetra Pak’s collaboration with the Forest Stewardship Council (FSC), the only internationally recognised standard-setting organisation for responsible forest management. The company just celebrated a decade of this certification to emphasise its commitment to maintaining best practices in handling trees throughout the entire supply chain of its operations. Hougaard adds: “Apart from our technology investments, we work to help achieving the Saudi National Transformation Plan 2020 on two pillars; Developing the Tetra Pak Technical Training Academy to equip local talents with knowledge required for their job roles. Secondly, working on empowering women by hiring more females into important jobs into our facility.” Manufacturing is, after all, an integral part of Saudi Arabia’s 2030 Strategy. It is Tetra Pak’s responsibility to help accelerate that and be an example for smaller industry players, supporting economic development and continuously improving from within. “We remain excited about our long-term presence in Saudi Arabia, and for our contribution to innovation and making food safe and available in The Kingdom,” Hougaard concludes.

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“We’re always keen to bring in new ideas to push that core value of continuous innovation” – Niels Hougaard - Managing Director of Tetra Pak Arabia Area

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PLOTTING AHEAD The inevitable success of Bahrain Bay

Written by Nell Walker Produced by Craig Daniels

CEO of Bahrain Bay Development, Gagan Suri, describes the progress of the project and how it has become a jewel in the crown of the nation

“

My responsibility is mainly to revive the project back to full glory and turn the company into a long-term, sustainable revenue-generating business.” The path for Bahrain Bay Development has not always been smooth, which is why Gagan Suri was drafted in three years ago to tackle those issues. Educated in India, America, and Canada, Suri trained in hospitality until realising that was not what he wanted longterm. After acquiring an MBA, he tried his hand at various financial roles before dipping into the construction and real estate industry. In his role at Arcapita, a large private equity real estate business, Suri took on Bahrain Bay as one of his first portfolio companies, and discovered its development had stagnated. He was asked to take over the business temporarily as interim CEO, and the

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role swiftly became permanent. “Three years in, we have made significant progress,” he says. “This is one of the largest developments in Bahrain. It’s shining now; it’s doing well. It’s becoming the focal point of the whole country. We’re proud of our achievements and we have a lot more to look forward to the next two-to-three years.” The stumbling blocks for the business have come in the form of slumps in the market. Construction on Bahrain Bay began a decade ago, but with financial problems plaguing the company, it lay dormant by the time Suri became aware of it. “You see, it was built at the peak of the market, where signs were good and money was flowing,” he explains. “65% of the plots were sold at the beginning. Then the slumps happened which caused everything to slow down.

CONSTRUCTION

“This is one of the largest developments in Bahrain. It’s shining now; it’s doing well” – Gagan Suri, CEO

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United Tower and Wyndham Hotel

Construction began in

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Bridge connecting the North and South promenade

“The revival strategy had to be implemented in steps. First of all, we had to bring footfall to the development, and then start shaping it so that it looked more finished. It’s a joint effort between us and the whole country. All different parties involved in reviving the economy are also responsible for this – I can’t take full credit.” Bahrain Bay Development was supported by the strong partnerships it had formed, including with the Ministry of Tourism and Culture, which enabled the business to harmonise

and create the overall image it desired. The particular aforementioned partnership enabled Bahrain Bay to create events – such as a food festival and music concerts – which brought almost half a million tourists to the area. These are staggering numbers for such a small country. “Now it’s a snowball effect,” says Suri. “We got the ball rolling and it keeps gathering pace, to the point where we’re seeing meaningful results. This has all come from having a proactive approach to the whole development.”

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“We got the ball rolling and it keeps gathering pace, to the point where we’re seeing meaningful results” – Gagan Suri, CEO

CONSTRUCTION

Suri and his team are always thinking five or 10 years in the future. With the commercial aspects of the project in place, they are currently focused on the residential segment of the business, building parks, restaurants, gyms, coffee shops, and retail areas for families to enjoy. The site doesn’t contain any educational or medical facilities, but these necessities are available just minutes away. Bahrain Bay Development is intended to be a place that people enjoy, not simply live and work within, and everything that can be integrated has been or will be integrated. “The infrastructure really is top notch,” Suri explains. “We were thinking long-term from the beginning. We had district water cooling set up from the beginning, and conduits for all telecommunications whereby three different operators can put in their lines. The sewage treatment goes to Paragon Utilities to get treated, and that water comes back into the development as irrigation water. We work hard to conserve energy and make sure all that technology can be easily upgraded.”

While keeping the technology of this smart city up to date is not much of a challenge for a team so prepared, handling a constantlyflowing and evolving supply chain certainly can be. Suri and his team have to monitor acquisitions all the time and be careful with their choice of partners, to ensure nothing is wasted and everything is made the most of. “It goes from the tiniest details to the biggest; from LED light bulbs to irrigation water. There’s no easy, quick, short answer to this question. We have it in our minds constantly to ensure that we always partner with the right people who have the same outlook.” Despite any trials involved, Bahrain Bay Development’s readiness is never in question, especially for Suri. The development stands as a jewel in the nation’s crown. “We are the suppliers of full infrastructure land which supports what Bahrain developers want,” says Suri, and as such the project is set to pour immeasurable money and prestige into the country now that it’s firmly back on course. “Bahrain wants to bring in foreign investors, foreign banks, consulting

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Waterbay at Bahrain Bay

firms, to create jobs, to create offices – we are in the heart of the city. The heart of the country. We have hotels. We have unparalleled connectivity. There were always plans to build a second Saudi causeway, and the infrastructure exists in Bahrain Bay; the entrance to that bridge will be here, and imagine what that does to Bahrain Bay. It becomes the gateway

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for all the major businesses coming from Saudi to Bahrain, and we will be a four or five-minute drive to the airport. Not many places in the world can say you can go from the centre of the city to the airport in five minutes.” Suri wants the residents of the project to reflect the nature of the location, and believes that those who already believe in the company’s vision

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are the people the development will appeal to. The vision is ultimately for a clean, pristine environment which naturally leads to a positive, peaceful community that wants for nothing. “It’s about the small things we’re always doing that ensure we remain committed to our goal, what we say, what we do, and who we are,” Suri concludes.

Design concept of Wafra Tower

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Nassab Group US construction with a local touch Written by Dale Benton Produced by Craig Daniels

Through the $1.5bn Apache Program, Nassab Group brings US construction expertise while maintaining an unrivaled understanding of military construction in KSA

ounded in 1992, Nassab Contracting & Trading Ltd (NCTC) has established itself as a leading supplier of high skilled construction services, construction materials and engineering services throughout the Kingdom of Saudi Arabia. Having spent the best part of two decades collaborating with world class partners, NCTC has successfully designed and completed hundreds of projects across Saudi Arabia, the wider Middle East and Africa. Currently working on the $1.5bn Apache Program, a design build programme as part of the US Foreign Military Sales Program (FMS), Nassab has taken on the role of consultant, pulling all the necessary skills and expertise together to deliver a world class project.

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Heading up this programme is Thomas Maher, Construction Director. With over 20 years’ experience working in Project and Construction Management all over the world, including the Middle East, Maher can call upon his experience operating in international markets to successfully navigate such a significant project and the challenges that come with it. “The challenge working for any US Government entity is working within a specific set of rules and regulations,” says Maher. “Acquisitions, procurement, supplier relationships, you name it. But naturally, not every country has those same regulations and rules, so it becomes a case of square peg, round hole. “Having worked internationally, I understand the different cultures and, more importantly, how to

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“We’ve started to look at younger local engineers that perhaps don’t have the experience and bringing them into the organisation” Thomas Maher, Construction Director, Nassab Group

Al-Habshi Engineering Consultants Office (ACO) is a leading consulting office in Kuwait established in 1994, and is capable of providing engineering services to fit any project’s requirements, both in Kuwait and internationally. The emphasis has always been on quality and good communication, which has resulted in a large percentage of repeat business from both government and private sectors. Almost all of the engineering disciplines are covered by Al-Habshi Consultants Office and are achieved through extensive in-depth knowledge and a massive scope of experience, all of which are brought together by ACO and its many associates.

alhabshikw.com

admin @alhabshikw.com

+965 2249 8008 +965 2249 8118

P.O. Box 27154 Safat 13132, Kuwait

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integrate these different systems and regulations that don’t necessarily align with each other.” Maher points to multiple examples over the years of US organisations looking to operate in Saudi Arabia and refusing to adapt their processes and ways of working, stubbornly sticking to the one size fits all mentality that can only result in failure. The Apache Program is a multi-phase design build programme, funded through the Ministry of Defense and managed through the US Army Corps. Over a five-phase program, Nassab will oversee the construction of apache helicopter hangers, ground support equipment facilities, helicopter runways and taxiways across Dammam, Tabuk, Khanus-Mushait, Al Kharj and Qassim. Nassab is a locally owned Saudi Company that is using the US model of construction management that includes an additional 8-12 American Directors and Managers to teach, train and implement the successful American model. Maher believes that where the company can stand tall against other companies is in its focus on the defence market and an all-important local touch. “There’s a real opportunity here for construction and engineering in the defence industry,” he says. “And we feel that being a local entity, with a US feel and using US systems and expertise, while remaining a local Saudi company, is somewhat unique here.” The Apache Program is currently in the phase one design stage, with Maher and Nassab working on

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and foundations and civil work that will come as the company moves fully into the construction phase. Overall, the company is looking at completing the entire program within the next five years and will work closely with ABV Rock (EG&G Middle East), the contractor awarded the project, to deliver it on time. It is through working closely with ABV Rock (EG&G Middle East), which has over 40 years’ experience working on major projects in the Middle East, that Nassab plays more of a consultancy role.

“ABV Rock (EG&G Middle East) although a fully capable Saudi Contractor, didn’t really have any experience in working with US Army Corps engineering, so we were hired by the company to put together a group of people that had the right qualifications, the experience and the expertise to manage and run a US Army Corps project,” he says. “We were brought in to handle the overall project management, supplying the construction managers and project managers, the quality control teams, the safety teams and really

“We feel that being a US entity, with a US feel and using US systems and expertise, while remaining a local Saudi company is somewhat unique here” Thomas Maher Construction Director, Nassab Group

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supporting ABV Rock throughout the execution of the project.” Naturally, and common across organisations operating in the Middle East, there is a reliance on expat labour. With a project involving the US Army Corps, it requires a certain understanding and necessary skillset in order to deliver it effectively. Maher understands the challenge this brings and has developed a workforce made up of experienced individuals he has worked with before so he can understand their capabilities and what they can

achieve with the Apache Program. With that in mind, however, governmental regulations are set to change in the coming years, requiring foreign companies working within KSA to rely less and less on expat labour and have a significant Saudi workforce. “We’ve started to look at younger local engineers that perhaps don’t have the experience and bringing them into the organisation,” says Maher. “It benefits them of course, but it benefits us in the sense that we are developing them right now. Fast forward three or four years and suddenly these young inexperienced engineers are fully capable and fully trained to work on US Army Corps projects.” The success of the Apache Program, and ultimately Nassab Group, lies in the relationship the company develops and fosters with vendors, contractors and strategic partners. To this end, Maher believes the key component for the vendors is understanding what exactly it is that Nassab brings to the table, the experience of the company

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and, more importantly, to grasp the scope of US Army Corps investment that’s coming in the near future. “The reality that’s facing the Saudi Arabian construction industry is that it is on fire right now,” says Maher. “In the Location of Nassab Group HQ coming years the US Army Corps will invest billions of dollars into construction projects, much like the Apache Project, so it’s important that there is that shared understanding from the vendors in order for us to continue to foster a mutually beneficial relationship moving forward.” Looking to the future, Nassab’s focus for the immediate term is on the Apache Project, but Maher has one eye on the FMS construction space. This, he feels, really enables Nassab to be competitive and to showcase that US expertise with the local Saudi understanding. “We bring that unique element, the speciality personnel and the experience in order to successfully deliver the project requirements,” he says.

RIYADH

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Nassab Group is the Program Management/Construction Director for the $1.5bn Apache Program that is part of the US Foreign Military Sales Program. This design build programe, which is funded through the Ministry of Defense, specifically the Royal Saudi Land Forces Aviation Command. The programme is managed by the US Army Corps of Engineers, consists of the design and construction of Apache Helicopter hangars, spare parts warehouses, ground support equipment facilities, administration buildings, brigade headquarters, fire and rescue facilities, waste water treatment plants, power generation plants, utilities upgrades, helicopter runways and taxiways, aprons, pavement lighting and flight simulator buildings. The first five phases of the Apache Program will focus on various locations inside of the Kingdom of Saudi Arabia to include

Dammam, Tabuk, Khamis-Mushait, Al Kharj and Qassim.

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An Envac automatic waste collection facility

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There are huge opportunities to change the waste management industry. The earlier a design considers waste the better,” explains Envac Business Development Manager Alex Mitchell. By 2050, cities will house approximately 70% of the human population, creating significant challenges in the way in which we manage waste. Whilst there have been advances in a multitude of industries, waste management has remained the same, creating high levels of pollution and increased health concerns. However, this is set to change. Founded in 1961 and with over 1,000 systems operating in 30 countries, Envac works to support the development of smart cities through embedding exceptional technologies that can be applied in large-scale developments, apartments, hospitals, commercial

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buildings and airports. Moving waste via a pipe network, Envac’s system connects buildings to a number of collection stations, situated away from the main development or city site, creating cleaner, more efficient spaces in which to grow and thrive. Envac’s systems are ISO 9001 and HACCP compliant, yet the company faces an uphill battle in order for it to transform such a traditional industry. “Envac is slowly changing the perception of how waste can be managed by focusing on projects where we add value,” explains Mitchell. Envac’s waste collection solutions are able to significantly reduce labour costs long-term, reduce carbon emissions and eliminate a number of potential risks associated with increased waste levels and growing demands on this industry. To increase market penetration and provide reliable development

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Envacâ&#x20AC;&#x2122;s system serves residential properties

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Envacâ&#x20AC;&#x2122;s systems are ISO 9001 and HACCP compliant

“THERE ARE HUGE OPPORTUNITIES TO CHANGE THE WASTE MANAGEMENT INDUSTRY. THE EARLIER A DESIGN CONSIDERS WASTE THE BETTER” - ALEX MITCHELL Envac Business Development Manager

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guidelines for the automated vacuum waste collection industry, Envac has invested in working with the British Standards Institution (BSI) to develop a specification. This will “set the bar of quality” for industry to follow and will give a level of confidence to clients when it comes to the design.

will be connected to all areas in the district. The system will collect 145 tonnes of mixed waste per day via a pipe network that connects to a single collection station, where the waste is then stored in sealed containers which are removed from site once full. “If you imagine a neighbourhood within traditional waste management, KING ABDULLAH FINANCIAL a truck has to visit every single DISTRICT (KAFD) building and house and pick up By identifying customer requirements, the waste,” comments Mitchell. the need for the system and the “Envac’s system reduces carbon type of waste generated, Envac emissions as a result of reduced has been behind the waste strategy waste vehicle traffic, reduced fuel for the King Abdullah Financial emissions and idling time for trucks, District (KAFD) project. Situated contributing to a safe environment.” in Riyadh, Saudi Arabia, KAFD To drive up resource recovery will become the largest mixed use rates, the project will adopt a twofinancial centre in the Middle East. fraction system, one for dry and one Unlike traditional for wet waste. Each waste management waste fraction will systems, where be deposited into waste is manually separate waste Since 1961 Envac has collected and inlets, which will accumulated over 4,000 placed into a connect to multiple years of operational compactor and vertical gravity collected via trucks, chutes. The use of experience Envac’s flexible system inlets will eliminate the

1961

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An Envac litter bin in Stockholm, Sweden

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possibility of overflowing waste, seen in traditional waste collection systems. “Many existing high-rise buildings have gravity waste chutes installed, where residents or office workers can throw waste into an inlet on each floor,” explains Mitchell. “Envac’s system connects to the bottom of that chute where we install our discharge valve.” The waste is temporarily stored at the valve until a collection cycle is activated by a level sensor or a timed sequence controlled by Envac’s Automation platform. The vacuum exhausters, located at the

“IF TRUCKS DON’T COME INTO THE DEVELOPMENT, IT REDUCES THE NUMBER OF TRUCKS ON THE ROAD AND THE RISK OF ACCIDENTS WITH PEDESTRIANS OR OTHER VEHICLES” - ALEX MITCHELL Envac Business Development Manager

collection station, are energised and create a negative pressure within the pipe network. Once the required vacuum pressure is reached, Envac’s automation platform controls the valve openings to create a flow of air within the pipe network. The discharge valves then open to allow the waste to enter the system reaching speeds of 70kph. The air which carries the waste is consequently treated through a multistage filtering system, eliminating all potential odours. Each waste collection station

in the Envac system is situated remotely or offsite, removing the need for waste collection trucks to enter the development. “If trucks don’t come into the development, it reduces the number of trucks on the road and the risk of accidents with pedestrians or other vehicles,” comments Mitchell. “One of our biggest environmental savings is the reduction in the reliance on transport.” Previous studies have shown that Envac’s systems have consequently reduced waste traffic and associated carbon emissions by up to 90%.

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GIFT CITY Envac’s 10-year project at Gujarat International Finance and Technology City (GIFT City) in India has seen the development of its first integrated collection and segregation facility. Eliminating potential waste from landfill, the project will transform the area and ultimately attract financial and technological investment upon completion, in a bid to become one of India’s smart cities. Envac’s waste collection systems are on the rise in both the Middle East and Asia, especially within housing developments. “In India for example, it is difficult for us to sell a system if it doesn’t include a treatment technology as well, so we sell a holistic approach, otherwise it just doesn’t stack up,” says Mitchell. “We also find in the Middle East, for substantial development projects, that with increasing population density, municipal regulation and zero waste targets, the economics of pneumatically collecting waste and treating the waste on site are becoming more viable. Globally, I think waste management has gained a

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higher profile over the last ten years.” Phase one of the GIFT City project is now complete, with phase two now underway. The project will see Envac’s waste system incorporated into a new district, encompassing hospitals, schools, hotels, retail and corporate facilities, all spread over 900 acres. Similar to KAFD, the project has become one of the most ambitious and technologically advanced infrastructure projects that Envac is in the process of undertaking, where its systems will cater for up to 400 tons of waste per day. Sustainable practices have been at the forefront of all Envac’s designs. Two chute inlets enable valuable resources to be recovered from the wet organic waste at GIFT City, whereas dry waste enters a mechanical sorting process. Bottles, cans, paper and plastic will all be segregated out of the waste stream and placed within a recycling stream at every collection station. Eventually, up to seven collection stations will be built at GIFT City, removing any need for waste collection trucks to enter the area.

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“The system’s ability to revolutionise the waste collection process, from making the development cleaner and more hygienic by eliminating overfull bins, to making the area safer and more environmentally friendly by removing large trucks from the waste collection process - all whilst reducing the cost of waste collection - is extraordinary,” comments Ajay Pandey, Managing Director and Group CEO at GIFT City. Additionally, security is a key issue within Envac’s waste management systems as the sealed system offers a secure pathway for waste to leave a site without the need for any trucks. These systems are highly desirable in a majority of Envac’s projects, especially within airports where Envac handles waste from the terminals (e.g. Hamad International Airport in Doha) and from flight catering operations (e.g. Emirates Flight Catering in Dubai). In many projects in Europe, Envac has implemented tracking technologies, providing advanced analytics and providing greater insights into the efficiency of its systems. Waste is placed in inlets, which are able to

Envac’s bins automatically empty underground

“THE SYSTEM’S ABILITY TO REVOLUTIONISE THE WASTE COLLECTION PROCESS... ALL WHILST REDUCING THE COST OF WASTE COLLECTION - IS EXTRAORDINARY” AJAY PANDEY MD and Group CEO at GIFT City

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Envacâ&#x20AC;&#x2122;s underground waste management system

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be tracked through the use of Radio Frequency Identification (RFD) tags. Accessible only by authorised users, Mitchell explains that “once scanned, the inlet will open for users to deposit their waste, which falls down onto the discharge valve which have inbuilt weighing systems.” “In future, a charging scheme could be implemented to further incentivise users to recycle more and dispose of less garbage,” creating sufficient cost controls and reduced fuel costs for businesses.

OUTDOOR SPACES To further support this global smart city vision, traditional waste litter bins on local streets have also been modernised, making all waste management accessible, convenient and low-cost in order to encourage individuals to support Envac’s operations. Whilst outdoor inlets and high capacity litter bins resemble traditional bins, the updated designs enable the bins to connect to Envac’s systems underground so that “they are emptied automatically,

ensuring that no truck has to go to the street to empty them,” adds Mitchell. “They can handle waste from pedestrians or facilities management service contractors, creating cleaner, more hygienic spaces. “We also have systems in Singapore that operate as low as 250 to 500kg of waste per day, all the way up to systems which collect 400 tonnes of waste a day. We have a wide range so there is a lot of versatility.” An aggressive five-year expansion plan will consequently enable Envac to drive further competition in the delivery of waste management solutions, and grow in alignment with this global demand for smart technologies. “There are other companies that offer similar technologies, but we don’t have as much competition as we would like. I think any industry thrives with a bit of competition,” concludes Mitchell. “I think the market could do with more companies coming into it and as a result, more appreciation and understanding of the technology and as that happens, more opportunities become available as well.”

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14 2014

Our energy source for the future: APPRECIATION.

THIS IS CLARIANT: SPECIALTY CHEMICALS CREATING VALUE We engage with the issues of the future. This approach is deeply rooted in our brand: we focus on appreciation – in all areas in which we are active. The result is innovative solutions to lower emissions, reduce raw material consumption, and create sustained added value. This is precious to us.