#54 - November 2016

WWW.FINANCEMIDDLEEAST.NET ISSUE 54 I NOVEMBER 2016

INNOVATIVE INVESTMENT

When challenges present themselves, we see opportunities.

– AbdulWahab Al Mutawa, Board Member & CEO of Al Mal Investment (K.P.S.C.)

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INNOVATIVE INVESTMENT

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Communicating with comedy Keeping top talent close

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I hope you enjoy this issue!

Jessica Combes Read my blog at: http://www.cpifinancial.net/blog/author/112/jessicacombes Follow us on Twitter: @FinanceMidEast and on Instagram: @finance_middle_east

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Last issue, the biggest news was the Cabinet’s approval of the final draft of Federal Decree Law No. 9 of 2016 on Bankruptcy (the New Law). It was published in the Official Gazette at the end of October and is due to be enforced at the end of December this year. In this issue our news analysis looks at how the courts are going to accommodate and execute the newly outlined bankruptcy procedures and handle a potentially heavy case load of small businesses looking to restructure their debts and continue to grow their businesses (Pg 05).

Sustainable business growth among the GCC countries is a priority, with many focussing on developing their respective SME sectors, to promote entrepreneurial endeavours, diversify their economies, and create jobs. Our cover story with Abdulwahab Al Mutawa, Board Member & CEO of Al Mal Investment (K.P.S.C.), touches briefly on the National Fund for SME development and plans for the investment company to incubate SMEs, and further grow the sector (Pg 18).

A key area that is getting a lot of attention globally is how business sustainability can be improved by implementing flexible working solutions for employees. In our last issue, we looked at how flexitime can benefit an organisation, and in this issue we look at offering remote working solutions to employees that can actually improve the bottom line. Our feature looks at how managers can implement them practically, both ensuring the system isn’t abused by employees, and mitigating any IT security risks (Pg 30). Our Facetime interview with Karim Idilby, General Manager of international health insurance provider, Bupa Global Middle East, covers how implementing offering remote working solutions can improve well-being in the workplace by helping staff better manage their stress, as well as improving productivity (Pg 38).

Taking a step beyond working remotely, we sat down with Jo Jobling, the owner of Jo Cole Photography who runs her business from home. She talks about how working from home allows her to spend much-needed quality time with her children, but how this creates a different set of demands on her time. She joined us in our ‘Behind the scenes’ section and we took her out of her comfort zone by placing her in front of the camera. She shared some great advice about making a career out of photography, even without a qualification (Pg 48). Make sure to check our website for the full video interview with her.

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NEWS ANALYSIS Stemming the flow FAST FACTS Dubai SME and Dubai First facilitate SME funding TOP TIPS Secrets to start up success OPINION SMEs: breaking barriers LEGAL FOCUS Working legally in the UAE CHALK TALK Ali Al Sayed CEO CHAT Innovative investment FEATURE Links in the chain

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Chairman SALEH F. AL AKRABI

Chief Executive Officer ROBIN AMLÔT robin@cpifinancial.net Tel: +971 4 391 4681

FEATURE Widening the net

Managing Editor GEORGINA ENZER georgina@cpifinancial.net Tel: +971 4 391 3728

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FEATURE Solitary splendour

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CASE STUDY Fancy a date?

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FACETIME Happiness: serious business

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FRANCHISE Stay Kool

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START-UP Bloomin’ gorgeous

SARAH OWERMOHLE sarah@cpifinancial.net Tel: +971 4 375 2527

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TECH FOCUS Automatic growth

WILLIAM MULLALLY william@cpifinancial.net Tel: +971 4 391 3718

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TECH FOCUS Safety layers

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BEHIND THE SCENES Jo Jobling

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Chief Commercial Officer OMER HUSSAIN omer@cpifinancial.net Tel: +971 4 391 5419 Editors JESSICA COMBES jessica@cpifinancial.net Tel: +971 4 364 2024

NABILAH ANNUAR nabilah.annuar@ cpifinancial.net Tel: +971 4 391 3726 London Bureau ISLA MACFARLANE isla@cpifinancial.net Tel: +44 7857 429476

LAST WORD Flexibly organised

Contract Publishing Editor SARAH SPENDIFF sarah.spendiff@ cpifinancial.net Tel: +971 4 391 3729

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Since the UAE's bankruptcy law’s publication in the Official Gazette, regional experts explain how the courts can manage the restructuring procedures

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he bankruptcy law could place a significant strain on the courts and public prosecution system, cautioning that local courts could currently be ill-equipped to handle the types of restructuring and bankruptcy procedures set out in its provisions, said Essam Al Tamimi, Founder and Managing Partner of law firm Al Tamimi and Company.

The final draft of Federal Decree Law No. 9 of 2016 on Bankruptcy (the New Law) has been issued by the UAE government and was published in the Official Gazette on 29 September 2016, to come into force at the end of December 2016.

The period of uncertainty that comes with all legislative change could be one of the greatest challenges to the UAE courts, according to Rebecca Copley, Head of Financial Services Disputes and Investigations for the Middle East at international law firm Eversheds. She added that not only will they be tasked with applying the law in practice, but at a time when they may experience a substantial increase in their case load.

“Parties that are unclear about their rights and obligations and the boundaries within which they can operate, may be more inclined to seek the support of the courts and take advantage of the newly available remedies to safeguard their interests,” she said.

Omar Ali Momany, Partner at law firm Baker & McKenzie Habib Al Mulla, said the new law is heavy on procedures, and it tries to address the vague bankruptcy processes in system.

“The general approach in new law is to have time frames for implementing processes, every step of the way.

Some of those time frames are pretty aggressive, such as three days or five days, to implement certain processes,” he said.

Since the law is due to be enforced as soon as the end of this year, Ben Bruton, UAE Managing Partner, Eversheds, suggested steps to prepare for its implementation would probably have been underway for some time, so in theory the courts should be prepared for the changes. However, he added it would be interesting to see how the business community responds and the extent to which the courts are used to exert pressure on the respective parties.

Al Tamimi said in a statement that the new law called for a large number of insolvency experts to assist with courtdriven insolvency proceedings, but that such experts were thin on the ground in the UAE, and in some cases do not appear to have the right qualifications.

The requirement for insolvency experts has opened the door for firms, rather than individuals, to take on that role.

While identifying the firms that can drive these processes, there may be a shortterm need for the court to create a division that deals solely with insolvency restructuring and the processes that are going to be administered under this law, according to Momany.

The most important factor, moving forward, will be internal communication among parties tasked with applying the law to ensure consistency, said Bruton. The key to managing the transition is establishing a degree of certainty and predictability as quickly as possible, which will create credibility and confidence in the system and help manage court resources.

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NEWS ANALYSIS

Stemming the flow

BRIDGING THE SKILLS GAP

Seventy per cent of females want to develop their skills to enable them to return to the workplace, but 80 per cent believe there is not enough support to do so, according to a new survey carried out by the womenonly job portal Hopscotch. The survey found a huge disparity between the support females need in order to make their journey back to work a smooth one, and what is currently on offer in the GCC region.

Sixty-seven per cent of the respondents said they would like to gain more confidence, just over 50 per cent wanted to improve social media skills, and 64 per cent wanted to improve their personal effectiveness.

To meet this need, Hopscotch Co-Founder and MD, Helen McGuire has set up free workshops to address these issues.

Building on the success of the first series in May and June this year, a second workshop, this time in partnership with Mastercard will take place in mid-November, and will focus on personal effectiveness.

McGuire said the first workshop saw 98 per cent of attendees recommend the workshops to others, and announced an ongoing commitment to the training concept.

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SME FINANCE TAKES CENTRE STAGE AT SME BEYOND BORDERS

The region has a long way to go to in terms of providing sound financial support for the SME sector.

Gulf Capital, Middle East Venture Partners, Lumia Capital, The Abraaj Group, Abu Dhabi Financial Group, Impulse International, Wamda Capital and BECO Capital met at the annual SME Beyond Borders 2016 conference to discuss funding opportunities and challenges.

Speaking on behalf of the wider investor community, Walid Mansour, Managing Partner, Middle East Venture Partners, said venture capital is a key enabler for SMEs creation and scaling, and a leeway for innovation in any modern economy. VC-backed start-ups become a magnet for talent development, innovation and wealth creation–their entrepreneurial spirit will contagiously spread new values in society.

Zul Javaid, Vice President–Business Analysis & Performance at Etisalat, added that through Etisilat’s products and services, smaller companies can achieve their objectives. As a result, it is possible to see which of these companies is poised for growth, and is able to excel within its respective industry space.

DubaiStartupHub ATTRACTS OVER 200 ENTREPRENEURS AT GITEX Dubai Chamber of Commerce and Industry’s newly-launched online platform DubaiStartupHub attracted over 200 business ideas from startups who pinned their projects onto a giant digital billboard displaying the map of Dubai at its stand during the first three days of its participation in the 35th Gitex Technology Week.

After the tech week, the ideas were placed on the DubaiStartupHub platform, allowing investors to select the project of their choice and to directly get in touch with the owner of the idea to carry forward the partnership.

This website offers the local map as the main digital tool and connects start-up, entrepreneurs, developers, venture capitalists and students to establish new connections, learn about new opportunities and create new partnerships between the public and private sector to help accelerate innovation and stimulate the local economy.

The DubaiStartupHub aligns with Dubai Chamber’s aim to support entrepreneurs and allows the local community to interact with cloud technology in new ways, allowing virtual visitors to learn about new job opportunities and local tech news; sign up for tech-focused events, classes and meet-ups; and navigate the city with a digital map that lists open office locations and workspaces.

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SHUTTERSTOCK.COM/ZAPP2PHOTO

FAST FACTS

Dubai SME, the agency of the Department of Economic Development (DED) in Dubai mandated to develop the small and medium enterprise (SME) sector, has signed a memorandum of understanding (MoU) with Dubai First, one of the leading consumer finance companies in the UAE, to facilitate SME access to funding.

Under the agreement, Dubai First will provide collateral-free financing to SMEs to enable them meet their business and working capital requirements. In addition, the SME owners will receive pre-approved Business Flex Credit Card with pre-set limit, flexible interest rates and rewards.

His Excellency Abdul Baset Al Janahi, CEO of Dubai SME, said that in order to ensure the future success of the SME sector in Dubai, the support and partnership of organisations like Dubai First is essential. The financing options that Dubai First offers will help many SMEs to expand their businesses and make an increasingly important contribution to the UAE economy.

Amit Talgeri, CEO of Dubai First, added that entrepreneurs are essential to building a stronger SME sector, which plays an important role in the development of the UAE. There is enormous potential for Dubai First to help meet the business needs of SMEs and bridge financial gaps. This strategic partnership is part of Dubai First’s commitment in engaging with key initiatives that are critical to Dubai’s growth story.

Dubai-based incubator, The Cribb, celebrated its third anniversary at its headquarters in Al Quoz, Dubai with over 100 startups and corporate representatives attending the event.

In the last three years of operation, the incubator has entered corporate venturing and launched the incubator 2.0. The Cribb will now embark on a journey to introduce corporates to the startup ecosystem in the region and vice-versa, to strengthen it further.

Started in 2013 by Kamal Hassan, The Cribb is a space where innovators and creative minds can get together and enrich the startup ecosystem in the region. The Cribb has so far incubated over 200 startups and has recently launched The Cribb Academy, its in-house training courses for the region’s most promising entrepreneurs, intrapreneurs and corporates.

“This year, we have seen a revenue growth of 48 per cent (YOY) and with recent developments in the space we are looking forward to exciting times ahead. After the launch of the Cribb Academy, we are looking forward to scale up in corporate venture programmes, which will help create visibility and culture, co-development and venture in businesses,” he said.

The event concluded with a thought leader panel discussion around the role of corporate ventures in the startup ecosystem, the importance of corporate venturing for companies. Samir Moftah, Future Innovation R&D Leaders and Lynne McColl, Future Innovation Leader at food manufacturer, MARS Inc. were also seen as part of the panelists.

FAST FACTS

SHUTTERSTOCK.COM/PHIPATBIG

SHUTTERSTOCK.COM/AQUARIUS83MEN

DUBAI SME AND DUBAI FIRST FACILITATE SME FUNDING

THE CRIBB LAUNCHES CORPORATE VENTURES PROGRAMS

CIA INAN L SUPPO F N

BY MENA STA RT NO IRED RT -U U Q PS E R

50%

MENTORSHIP

49% MARKETING

ASSISTANCE

25%

LEGAL SUPPORT

22%

IT DEVELOPMENT

20% CO-FOUNDERS

Source: State of MENA start-ups Report 2016, MAGNITT

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TOP TIPS

GET STARTED Be prepared to work 24/7 in the long run

and invest all your energy into it. You do not have to come up with the most exciting innovation, but you must study the market and analyse how you can do something better whilst translating it into a scalable business. Be ready to accept that your idea may not be bankable.

EXPECT THE DISAPPOINTMENTS There is every chance you are going to have a

great plan that, for some reason, becomes derailed or deviates from the original script. Do not lose heart or focus. There will be setbacks along the way, and they’re often necessary. Being prepared to make regular and small tweaks to your business strategy, and staying open to new opportunities, is the key to being successful. Be clear about the goal, but remain flexible enough to change course when needed.

Secrets to start up success Starting a business can be made more bearable by following these tips

by Andrea Haupts, Chief Operating Officer, Phanes Group

FOCUS ON THE PEOPLE

People make a business, so your investment of time and money to find the right people will pay dividends. Sometimes you meet people that you feel have the energy and ability to make a really meaningful contribution to your business, but at first it’s not clear how exactly. Good people solve problems, and they take ownership for their work.

They’re the type of individuals you need to pack your business with, even if finding them is tiring.

SHUTTERSTOCK.COM/RASSCO

MAINTAIN LONG-TERM VISION What separates those who are able to

successfully grow a business from those who fail is often their ability to bounce back from disappointment, having learned something from the process. So it’s critical that you are clear about the long-term vision, despite all the curve balls that life will throw at you.

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UNDERSTAND YOUR LIMITATIONS I cannot stress enough how important regular

reflection and introspection is. We have all been in situations where people running the business are dismissive of views that are different to their own. Get comfortable being challenged, and invite ideas and alternative perspectives. Otherwise why hire great people if you’re not prepared to have them contribute?

OPINION

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mall-and medium-sized enterprises (SMEs) stimulate growth and are key contributors to the national GDP as well as employment numbers.

Being more flexible than big corporations, they can adapt quickly to a market’s changing demands, driving innovation and as a result, making a significant contribution to export and trade figures.

In the past decade great strides have been taken by some Gulf countries to invest in this vital power engine; today, SMEs account for over 60 per cent of the UAE’s nonoil GDP, are responsible for over 70 per cent of Bahrain’s private sector workforce and make up over 90 per cent of Oman’s corporate sector.

Slowly but surely, the GCC is becoming increasingly aware of the tremendous impact the smaller players can have on national growth; this comes at a time when focus on diversification is at a high. Although the influence varies on a country-bycountry basis, most of the Gulf states are encouraging entrepreneurship, offering support and financial aid to

SMEs: breaking barriers GCC SMEs can grow by utilising the logistics industry and contribute to the economic growth of their respective economies, according to Nour Suliman, Chief Executive Officer, DHL Express Middle East and North Africa help SMEs flourish. All this is done in a conscious effort to move away from their dependence on oil and gas and embrace a more diverse, sustainable economic model.

Kuwait, like its neighbouring states, is no exception; until recently, oil has been the key driver of Kuwait’s economy and approximately 80 per cent of Kuwait’s workforce is employed by the government.

However, this is fast changing as the government has realised that this scenario is clearly unsustainable considering that oil is a depleting resource and will not be around forever.

Furthermore, the public sector will not be able to support the employment needs of Kuwait’s growing population and with over 50 per cent below the age of 20, the government’s move

to grow the SME segment comes at a right time. Despite the SME sector still being at a nascent stage compared to some of its nearby counterparts, with only three per cent contribution to the national GDP, the need for economic diversification and more private sector activity has pushed the government to re-evaluate its strategy and fast develop programmes to support this vital segment. cont. overleaf

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OPINION

In a globalised world forward-thinking SMEs should be looking to a future beyond their home boundaries if they want to prosper.”

– Nour Suliman, Chief Executive Officer, DHL Express Middle East and North Africa cont. from pg. 10

Proof of this is the establishment of the KD 4 billion National Fund for the Welfare of Small and MediumSized Enterprises.

The country is now focused on empowering its youth and building the next generation of private sector leaders to drive the economy forward. The government hopes to tap into its dynamic, innovative pool of entrepreneurs to turn SMEs into the pillar of Kuwait’s economy of tomorrow.

The significant capital allocation of the Kuwait National Fund for SMEs is a big step forward in diversifying the economy and encouraging start-ups.

But capital injection is just one factor in the complex mix needed for SMEs to become viable businesses and truly develop, flourish and prosper.

Undoubtedly cash helps, but for an SME sector to bloom, it needs more than that. Smaller players are usually more flexible and agile than larger companies and often enter their market with a fresh mindset and a lot of energy and ambition.

They are also more willing to take risks. But sustainable growth can be difficult with technology, science and consumer trends advancing at a rapid pace which makes it hard for smaller companies to keep up. This presents a need for a comprehensive national framework that goes beyond funding to support SME growth, especially at a time when international trade has become vital to long-term survival of SMEs. In the 21st century, international trade has become a key driver for small

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business success; in a globalised world forward-thinking SMEs should be looking to a future beyond their home boundaries if they want to prosper.

Therefore, proper legislation, reliable infrastructure, streamlined policies and procedures are essential for small players looking to spread their wings.

According to a recent study conducted

by DHL, SMEs are more successful when they enter the global market and those doing the best this century are those working internationally.

The research also revealed that the majority of SMEs are looking to derive up to 50 per cent of their revenues internationally in five years’ time.

Cross-border expansion should form an essential part of an SME’s long-term growth strategy and this is where logistics comes into play.

Trading across borders can be a time-consuming, complex and risky business; a research paper issued by the Economist Intelligence Unit (EIU) on behalf of DHL identified cultural differences, high administrative costs of establishing a presence and inadequate infrastructure as the key concerns for the smaller players.

Coupled with bureaucracy, corruption and political instability, breaking trade barriers for SMEs can be daunting.

Logistics provides a solution for small businesses that rely greatly on efficient transportation and customs processes and need access to a strong customer base to overcome trade obstacles. Efficient logistics can grant SMEs access to the world’s biggest consumer markets from the

get-go, making it a fundamental part of their service and giving them an edge over the competition. It is evident that partners and service providers, particularly in the field of logistics and transportation, can provide critical support in overcoming cultural barriers and infrastructure challenges while managing costs in order to compete.

With the regional economy experiencing some pressure, SMEs are the perfect vehicle to drive private sector growth and similarly, Kuwaiti SMEs are well-placed to ride the wave and take their businesses beyond home borders. Logistics experts with localised market know-how and a global infrastructure in place can help them achieve just that. Tapping into new markets is understandably not easy for many small enterprises with growth ambitions but logistics can help local SMEs connect with potential customers anywhere in the world, they do not need to be big to compete in the global village. With meticulous planning, a well-designed supply chain, a clear understanding of their competitive strengths, a reliable logistics partner and the right mindset, SMEs can break through any border and make the world their market.

As SMEs are likely to become the cornerstone of Kuwait’s growth in the coming years, express and logistics providers are gearing up to help these new players expand into foreign territory, breaking trade barriers and facilitating sustainable growth.

BUYING LAND IN THE PATH OF GROWTH Walton is one of North America’s leading land based real estate investment and development groups, concentrating on the research, acquisition, administration, planning and development of strategically located land in major North American growth corridors.

With over 35 years in real estate, Walton currently administers over

103,000 ACRES of land.

To date, we are proud to have returned over

$1.9 BILLION *

proceeds to our clients and partners in business. The weighted average IRR of exited pre-development projects is 12.32% p.a. ^, ranging from 4.75% to 28.51% p.a.

For more information, please contact your Wealth Manager or Walton Client Services.

Email: uaecservices@walton.com | U.A.E. Tollfree: 8000.35.703.828

* Amount returned is unaudited Canadian dollars and consists of a. Aggregate value of active undivided interest projects b. Book value of land, capitalized construction costs for development structures and cash reserves held by limited partnership and limited liability company entities, and c. Book value of land held directly or indirectly by Walton International Group Inc. & Walton International Group (USA), Inc. ^ These are weighted average returns on fully exited pre-development projects, audited, as of December 31, 2015. The complete report for all of Walton’s exited and unedited projects prepared by Walton Management, including notes and qualities with respect thereto, may be requested through your Financial Planner or Walton representatives. Past performance is not necessarily indicative of future results.

Information as of June 30, 2016 Risk disclosures: Investing in land has risk. Land investment is illiquid and it may be impossible for you to sell your land within a short period, or at any time at all. Land could potentially lose value over time. Past performance is not necessarily indicative of future results. No representation is made that profits, income or other returns will arise, or will likely arise, from the acquisition, holding, disposal or any other dealing with the land, or that any profits, income or other returns will arise or will likely arise within any specific time.

These risk disclosures do not purport to disclose all risks associated with land investments. Walton does not provide any investment, financial, accounting, legal and tax advice. You should carefully consider whether land investment is suitable for you in light of your financial circumstances, and consult professional investment and tax advisers if necessary. Walton and its representatives are not licensed to deal with real property located in Hong Kong, Japan, The People’s Republic of China, UAE, Taiwan, Thailand, Malaysia or Singapore. © 2016 Walton International Group Limited

LEGAL FOCUS

Working legally in the UAE Hiring foreigners can be fraught with difficulties, but these can be sidestepped with the right knowledge, according to Louise Collins of Fragomen Worldwide

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n line with continued efforts to become a global business hub, the UAE ranks among the world’s top 10 facilitators for small and medium enterprises (SME) in the recent World Bank Group annual report, making the UAE an ideal location to set up new business for local and foreign investors. According to the Department of Economic Development (DED), in Dubai SMEs employ approximately 42 per cent of the workforce which contributes to almost 40 per cent of the Emirate’s GDP. The UAE SME landscape is undergoing rapid transformations driven by the DED to enhance the competitiveness of the Emirate’s SMEs through regulatory improvements, business development programme and through the promotion of entrepreneurship.

With the majority of workers in the nation being nationals of other countries, business owners and entrepreneurs need to have a clear understanding of the process involved in hiring foreign employees.

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In selecting the business set up, investors must first identify the business activities that will be involved as this will help steer subsequent decisions such as company location which will ultimately impact the hiring process.

To commence business activities and to sponsor foreign nationals, investors must first secure a commercial licence. Once the business is duly registered, corporate documents can be obtained including an establishment card or signatory cards.

With many immigration processes going online, it is important to set up the relevant online immigration portals for application filings. This would also include setting up online payment methods to facilitate the submissions.

Businesses will be able to sponsor employees only when the registration process and all corporate requirements are in place; however, the type of business activities and the location of the business registration will impact the visa quota status, which

determines the type and number of employees that can be sponsored.

When hiring a foreign national, the present status of the individual must also be considered: is the person inside or outside the UAE? If the individual is inside country, then on what basis– visit visa or residency visa? These factors would affect documentary requirements for the visa processing, the costs and the processing timelines.

With the current geo-political situation in the region, the UAE implements strict measures to ensure the welfare and safety of its citizens and residents through thorough security screenings, which may cause delays for selected nationalities and can potentially impact employment start dates as well as business operations.

Furthermore, certain nationalities may be required to conduct medical examinations in their home countries prior to being permitted to enter the UAE. With recent regulatory changes, it is expected that citizens of several countries may soon have to go through a consular process in their home country to obtain an entry visa at the UAE

For the majority of SMEs, budget management will be at the forefront of their business establishment, making it important to take into account the associated costs of sponsorship of foreign employees.”

– Louise Collins, Senior Consultant, UAE Inbound, Fragomen Worldwide

consular post. The nationalities that are anticipated to be impacted constitute a significant part of the UAE’s foreign worker population including Indians, Egyptians, Pakistanis and Lebanese.

For the majority of SMEs, budget management will be at the forefront of their business establishment, making it important to take into account the associated costs of both business set up and sponsorship of foreign employees.

The costs for setting up a business in the UAE will depend on various options offered by the different jurisdictions. Free zones usually offer packages that include fees for issuance of a business licence, immigration establishment card and premise rental. When setting up a business outside of the free zones in the mainland jurisdiction, investors will have to look at the additional costs for procuring a labour establishment card and setting up their immigration online portal.

Government fees for employment visas also differ in each free zone, as well as in the mainland jurisdiction, as the

local authorities are permitted to impose internal administration charges on top of the fees regulated at the federal level.

For example, with regards to the bank guarantee required for visa processing; the Ministry of Human Resources and Emiratisation (MOHRE), which oversees the employment permits for individuals in the mainland jurisdiction, imposes a bank guarantee of AED 3,000 per applicant.

In comparison, the bank guarantee in Dubai Creative Clusters Authority (DCCA) is set as a fee of AED 2,500 and in Jebel Ali Free Zone Authority where the bank guarantee is calculated at one and half times the monthly base salary and an airfare ticket to the candidate’s country of origin.

The costs for sponsoring a foreign national will also include complying with local labour regulations including provisions of health insurance, end of entitlement benefits, and airfare tickets which must be factored into hiring budgets.

REMAINING COMPLIANT The issue of immigration compliance not only encompasses tracking employee

visa expiration dates or ensuring corporate documents are up-to-date, but also extends to monitoring employee commencement dates, making salary payments in accordance with the wage protection system, maintaining valid employee medical insurance coverage, and keeping a record of employee documents including passports and employment contracts.

Finally, employers must ensure the timely renewal or cancellation of foreign employee visas and that the correct visa type is in place for all employees.

Knowledge is often the key to a successful and smooth business set up. Understanding the country’s regulatory changes, visa requirements and potential restrictions is vital and will help save a lot of time and money in the long run. It is important to stay up to date with immigration regulations as they are constantly transforming to adapt to the dynamic nature of the UAE’s immigration landscape. Due diligence with regards to immigration compliance will ensure that potential penalties and non-compliance repercussions are avoided.

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CHALK TALK

ALI AL SAYED

Dubomedy is all about allowing aspiring comics the platform to develop comedy as an art form within the Middle East

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was always into break dance, which was my first job. This DJ would hire me because I was entertaining. I had to get on the dancefloor and dance to attract a lot of people, which made him look good. He would get hired again and again. It was brilliant and he was ahead of his time. I do not know why he could not make it.

I could not wait to get going and be responsible. I started working at

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a store that supplied satellite dishes, which were quite new here, when I was 15. I managed the store, did book keeping, scheduled the technicians, and when we had a big job I would also install the satellite dishes. The pay wasn’t great, but it was a job, and I was gaining experience.

When I was 17 I started working in events. I was working on healthcare exhibitions and conferences, and

later I moved onto international trade exhibitions. I was at the office until three in the morning because I was determined to be the CEO of a multibillion dollar company. That was the dream.

Growing up, watching the city grow, every day it seemed a new thing was possible. It’s hard to explain to people who did not live here before all the buildings.

You could look at Dubai every day, and its progression was both visual and spiritual, in that it inspired me to become bigger than myself.

I’ve heard people ask how many towers we actually need. These are symbols of success. I remember in 2003 we went to Media City, and on a detour we saw these towers with a giant swimming pool and I wondered what it was. Today it is known as Dubai Marina, and it obviously wasn’t a swimming pool. I live there now and we have the tram and the metro and close to 100 towers around us. It’s not what success is, but it’s a very nice symbol for it.

In 2004 and friend and I started an online entertainment magazine called Viva Dubai. We covered all the entertainment in Dubai and our first event was the Dubai Film Festival. We started going to all these concerts and we started meeting a lot of underground hip hop artists.

In 2008, I quit my job. I wanted to manage artists and try to help people find opportunities. It wasn’t easy to quit; I tried a number of times.

They kept offering me more, but finally I thought if I was working that hard for somebody else, I had to do it for myself. Even though I was married by that time, I did not have that many responsibilities. It was ‘now or never’.

I did not have capital or savings; I just went for it. I started Dubomedy about four or five months before the crash. Around that time I met my now wife who was booked for an event here, doing comedy workshops for a month. We did not have a comedy scene here, so she came where the art wasn’t. She’s worked with Stomp, on Broadway and been involved with Cirque du Soleil, so she had a really good career going on for her in the US. She decided to give it a go here for a year, before going back.

My first comedy gig was for the events company I used to work for.

They had a dentistry conference and exhibition coming up, hosting delegates from all around the world.

At that time, nobody had the money for entertainment. I had to audition in the meeting room in front of my old boss and a very prominent figure in the health care industry. They liked it but they said I could not do jokes about dentists. So when I was offered the job I accepted it, and I had two weeks to write 30 minutes of stand up.

I was on stage for 30 minutes and I could not hear anyone laugh. I went back stage and thought I never wanted to that again. My brother came to me and said it was really good. My brother will not be nice just because you’re not feeling good.

He’s the guy that would say, ‘Thanks for dinner; it was too salty’. He’s not mean, he’s just honest.

I always joke I’d have so much more time on my hands and I would be a lot richer if I was a comedian for myself, and not running this company. The business side has to fuel the community. For me, it’s about enabling comedy to come into the region. It’s about creating platforms and opportunities for comedians to see that they can do this as a career.

At the same time there is a lot of expression in it. For me, a lot of it is going to the West and showing them the funny side of the region, because they’re being shown a really angry side. I talk about things that make both them and me uncomfortable in order to break that wall between us that has been created by mainstream media.

It’s not very easy to make a large financial profit. Our returns in our comedy school aren’t very big because we’re not charging people a lot. We’re trying to make comedy as

affordable and accessible to as many people as we can. It is about the art.

We consider the comedy classes to be the backbone of our business, even though it barely covers the teacher’s time. Every session we will get in about 25 to 30 people, and they get pumped into the comedy scene and what they do after that is up to them. If I can help find that Arab comic that is going to take the world by surprise with their ability to talk about different things, I would consider this whole thing worth it.

We are making moves to open a comedy club soon in Dubai. There is a certain luxury that is expected in Dubai, but a comedy club is expected to be somewhat underground.

Finding the right location has been the struggle for me for the last four years. I want to make it accessible to a residential area because I want people catch a show on Sunday night, just to enjoy it. I want it to be open to everybody, even 13-year olds.

My first tip for an aspiring comedian is that it’s ok to be inspired by other comics but do not try to be them. Stand-up comedy has been around since Vaudeville, so every topic has been joked about. If you’re going to do a joke about being an Arab being stuck at an airport, I can think of 15 other comics who have done it, and they’ve done it better than you. Take material from your life and try to be truthful, try to be vulnerable and try to be personal.

Second, you suck. Accept it.

Finally, comedy breeds ego.

That is natural. At the end of the show musicians will always say ‘Give it up for this guy on bass and that guy on drums’ and so on. Comedians will say ‘I made people laugh’.

Do not ever let it get to you. The second it gets to you, you will die as a comedian.

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CEO CHAT

INNOVATIVE INVESTMENT

Abdulwahab Al Mutawa, Board Member & CEO of Al Mal Investment (K.P.S.C.), has a strategy to keep Al Mal Investment performing well in spite of challenges facing the sector

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When challenges present themselves, we see opportunities. – AbdulWahab Al Mutawa, Board Member & CEO of Al Mal Investment (K.P.S.C.)

Do you ever work with SMEs? What is your opinion on the Kuwaiti SME sector?

The overall Kuwaiti environment is very supportive of the entrepreneurship spirit thanks to the National Fund for SME Development that the Government of Kuwait has recently created to expand the private sector within the economy, thus creating more jobs. As a result, the entrepreneurial dynamic is fortunately thriving.

At Al Mal, we observe the market in great detail to identify new opportunities to become incubators ourselves because we believe SMEs greatly nourish the economy. In addition, we will continuously strive to create and grow newly established businesses by providing all necessary support–that is an essential part of our core values.

How has Al Mal performed throughout 2016? Are you happy with these results?

Al Mal performed admirably in this past year considering the overall instability in the local and regional investment environment. We believe this performance is a direct result of our innovation-driven and forwardlooking investment banking and asset management strategy that engenders sustainable and attractive investment opportunities in both traditional and emerging portfolios. And in line with our studied reinvention of our products to suit the changing market needs for both individuals and companies alike, we recently launched Takharoj, and opened up a consumer finance and leasing business, with which we have reestablished our financial line.

Evidently we pride ourselves on the progressive operation of our cont. overleaf

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CEO CHAT

Abdulwahab Al Mutawa said the factors hindering the growth of the investment sector in Kuwait can be overcome with the right strategies. cont. from pg. 19

company. Since its establishment in 1980, Al Mal has developed ge o g ra p h i c a l l y diversified investment portfolios that offer maximised returns to investors, catering to its clients through its many subsidiaries and affiliates throughout the world.

What challenges are faced by the investment sector in Kuwait, and how can these be addressed?

The investment sector in Kuwait has been facing several challenges recently that hinder its growth. These include changing trends and consumer preferences, the overall regulatory market, the legal system and the bureaucracy of government institutions.

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Additionally, the growing interdependence of economies as a result of globalisation has played a major role in Kuwait’s investment sector, given its being an open economy. Not to mention the market reluctance with the regional uncertainties and fluctuations.

Yet all these challenges can be overcome with the establishment of an integrated, dialogue-based strategy, uniting all stakeholders such as regulatory authorities, the central bank and ministries towards one united vision. Ongoing local, regional and global market studies must be enacted to understand the actual shift in trends and properly address them, creating a

healthy environment that motivates investments in the local market.

What is your vision for Al Mal going forward?

When challenges present themselves, we see opportunities.

In our industry, the only way to overcome an exceedingly fluctuating environment is to keenly observe, understand, adapt and innovate.

That has been, and continues to be, our mode of operation. This leads up to our long-term vision: to safeguard confidence when it is compromised in the market, realising that by positioning Al Mal as a safe haven for people’s investments: we create opportunities for investors that offer

them a better value for their funds, and we develop their investments by placing them in profitable portfolios.

Please tell us a little bit about your recent award for Takharoj – what criteria did you have to meet to win and what does it mean for Al Mal moving forward?

We are very proud of our latest product Takharoj, as it has been recently named “The Most Innovative Financial Product” by Banker Middle East, one of the regionally leading authorities in the industry. This award is a testimony to our continuous efforts to offer the market innovative products that understand and fulfill their needs.

Takharoj is a pioneering online platform, designed to cater to an untapped target segment in the marketplace by offering solutions to minority shareholders that currently have no fair value of their shares. They also do not have the opportunity to voice their opinions on strategic business decisions, as companies consider their shares negligible given the small amounts they own, thus treating them as silent shareholders. This is where Takharoj comes in, grouping likeminded minority shareholders and empowering them to gain more value from their minority shares in return.

This award reaffirms our strong presence in the market and highlights our leadership strategy, while also demonstrating the high level of receptivity and maturity of the regional financial market. This initiative is only the beginning of our product innovation strategy, as we take it upon ourselves to continuously endeavour in creating groundbreaking products and services that not only satisfy but exceed market needs, ultimately growing and pushing Al Mal to new frontiers.

ABDULWAHAB AL MUTAWA Abdulwahab Al Mutawa brings in seventeen years of high-level experience in the financial sector across the region. His range of career experiences includes corporate governance, corporate restructuring and financial engineering responsibilities to guide businesses to successfully grow and prosper. He started his career in 1999 as an analyst in the United Gulf Management Company in Boston US. Today, Al Mutawa is a board member and Chief Executive Officer of Al Mal Investment Company K.P.S.C. In parallel, he represents shareholders in various enterprises across the region such as National Takaful Insurance Company, First Education Holding B.S.C, the Kuwaiti Saudi Holding Company (KSCC), Al Mal Qatari Holding Co. (KSCC) First Diyar Real Estate Company (KSCC), Hail Cement Company, MAC SA, Royal Aviation and Safe Hands Health System Holding Co. In 2013, Al Mutawa was appointed director of both private equity funds and management companies related to Corporate Mezzanine IV and Corporate Mezzanine III at Al Mal Investment Company.

Prior to this, Al Mutawa was a representative in several organisations such as the International Leasing & Investment Company, Al Abraj Holding (KSC), Al Madina for Finance and Investment and Al Bareeq Holding Company, one of the first companies to be successfully listed on Kuwait’s parallel stock market.

Al Mutawa also plays an active role in society by holding roles and responsibilities in nonprofit organisations. He is currently one of the Board of Directors and Treasurer of INJAZ (JA Worldwide), a regional network that promotes education and training to ensure a successful career path for the youth. Previously, he was the Chairman of FAWSEC Educational Company, a nonprofit organisation that locally owns and manages business operations of educational and healthcare entities.

Al Mutawa holds a BA in International Relations from Boston University, Boston, US, and is a candidate of CFA level III. He has obtained a certificate in Executive Education (LMD) from John F. Kennedy School of Government, Harvard University, Boston US. Al Mutawa is an active member in numerous associations such as the CFA Institute, CFA Society Kuwait, Boston Securities Analyst Society, Alliance of M&A Advisors (AM & AA) and Turnaround Management Association (TMA).

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SUPPLY CHAIN

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LINKS IN THE CHAIN Regional experts consider the advantage of using SMEs in an organisation’s supply chain, in light of the opportunities presented by mega events, such as Expo 2020 Dubai

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signed Memorandum of Understanding (MoU) designed to enable SMEs in the emirate to participate in tenders for various Expo-related projects, the net value of which is estimated at AED 25 billion. Expo 2020 Dubai, along with Dubai SME, the agency of the Department of Economic Development (DED) mandated to develop the small and medium enterprise (SME) sector have recently highlighted opportunities for SMEs to participate as suppliers to Expo 2020 Dubai.

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Projects such as Expo 2020 do not only promote diversification, stimulate local businesses, drive trade and tourism and create jobs, but provide SMEs with an opportunity to generate growth and employment as part of a diversified UAE economy, according to Britt Ludvigsen, Advisor for Special Projects at Expo 2020 Dubai. Twenty per cent of the direct and indirect spend of the event has been allocated to SMEs. Essam Disi, Director Strategy & Policy, Dubai SME said that looking at the number of mega projects in the region,

especially in the UAE, KSA, and Qatar, the overall outlook for the procurement industry is positive, but competition competition will always be a challenge because SMEs have to compete with large local and international players.

However, this competition is healthy because it is likely to push SMEs to tweak their business models and focus on niche industries to complement existing players. “Being actively involved in a supply chain is a must for any SME and it should be included in the business model of any start-up from the concept

Being actively involved in a supply chain is a must for any SME and it should be included in the business model of any start-up from the concept phase.”

– Essam Disi, Director Strategy & Policy, Dubai SME

phase. SMEs should always be aware of the dynamic nature of their supply chain and the new requirements that emerge due to the introduction of new technologies or innovations,” said Disi.

Seema Shenava, Senior Category Manager for Procurement at outsourcing provider, Transguard Group said that despite the GCC region’s strong entrepreneurial traditions and the large size of the Gulf SME sectors, there is still great potential for sustainable economic diversification and job creation.

In order to take advantage of tender opportunities worth AED 5 billion that are already allocated to support SMEs, to be part of the preferred supplier lists, SMEs have to ensure they have the relevant third party accreditations and affiliations with relevant bodies. This will assist them in reaching the organisations they would like to provide services to, according to Sam Achampong, General Manager, Chartered Institute of Procurement and Supply (CIPS) Middle East and North Africa.

“SMEs should focus on their core offering, doing it well, and focus on

presenting it in the most effective way, rather than promising to carry out services or supply products that they do not have the capability of providing. Otherwise they could put the opportunity for new business at risk,” said Achampong.

He added that the current economic climate provides an opportunity for procurement professionals to implement innovative commercial solutions to mitigate the loss of revenue experienced by many organisations, which includes working with suppliers to re-examine product requirements, leading to a re-evaluation on planned procurement activity which will impact regional economic growth.

GOVERNMENT SUPPORT Shenava said that governments should enhance their support to SMEs in the areas of productivity, innovation and capability upgrading, which will help SMEs to boost their capabilities, restructure their business as needed, and remain competitive.

Disi added that procurement was once considered a back office function.

It has become increasingly recognised by many governments as a public policy tool used to support local suppliers and SMEs, which encourages economic and social development.

“The UAE was one of the first countries in the region that introduced public procurement policies that identified targets to channel a proportion of public contracts to SMEs. Other policies include directing public departments to spilt project tenders in smaller parts to enable SMEs to bid for them more easily,” he said.

He added there has been an increase in interest by larger companies in involving local SMEs in their supply chains, both as a CSR practice and as a decision to develop local suppliers in key markets to guarantee the continuous supply of required products and services. Certain governments in the MENA region still prefer to bundle procurement transactions into one contract in an effort to buy larger volumes and save on administrative costs. However, sometimes SMEs are preferred suppliers for larger organisations, owing to the fact that cont. overleaf

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SUPPLY CHAIN

Essam Disi says the increase of interest in using SMEs in company supply chains will help develop suppliers in smaller markets. cont. from pg. 23

they drive growth, development and diversification for countries in all stages of development, according to Shenava.

“It’s all about providing competitive pricing, acceptable levels of quality, and on-time delivery. The flexibility, agility and desire to innovate are key drivers in many larger organisations, but their

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own bureaucracy is often a barrier,” she said.

Realising the advantages of using SMEs as preferred suppliers requires organisations to shift their view of seeing purchasing as being tacticalor clerically-oriented, to one focussing on strategic supply management.

Strategic supply management

involves developing strategies, approaches, and methods for realising a competitive advantage and improvement from the procurement and sourcing process.

This is also achieved through direct involvement and interaction with suppliers.

“Progressive firms have little doubt about purchasing’s impact on total quality, cost, delivery, technology, and responsiveness to the needs of external customers. The question to be addressed is what firms must do to achieve a competitive advantage from their procurement and sourcing processes,” said Shenava.

Achampong added that the misconceptions which relate to larger companies or governments including SMEs in their supply chain relate to quality and scale. Questions include whether or not SMEs offer the same sales and quality control of their larger counterparts, how agile they are at overcoming any issues that arise, and whether they have the ability to scale up their organisation.

Many SMEs face a unique set of challenges, which affect their growth and profitability, and therefore diminish their ability to contribute to sustainable development, including lack of managerial training and experience, and inadequate education and skills, which result in various constraints in operations, added Shenava.

A conscious effort by those in the top tiers of an organisation’s supply chain has to be made if those obstacles are to be overcome. By making small, manageable changes and carrying out a supply market analysis against the company’s spend profile and categories, larger organisations can actively include more SMEs, Shenava said.

Standing Standing Strong Strong Through the waves that rise and fall, we stand strong, we stand Through the waves that rise and fall, we stand strong, we stand focused; our destination set to become the stronghold of Bahrain’s focused; our destination set to become the stronghold of Bahrain’s economy and its people. economy and its people.

Established in November 2004, Khaleeji Commercial Bank is an Established in November 2004, Khaleeji Commercial Bank is an Islamic bank that offers a comprehensive range of innovative retail and Islamic bank that offers a comprehensive range of innovative retail and investment products and services to individuals, corporate entities investment products and services to individuals, corporate entities and financial institutions. These include commercial and corporate and financial institutions. These include commercial and corporate banking, wealth management, structured investment products and banking, wealth management, structured investment products and project financing facilities. With the expertise of our highly skilled team, project financing facilities. With the expertise of our highly skilled team, we enable our customers to fulfill their personal needs and give them we enable our customers to fulfill their personal needs and give them a vital business edge. a vital business edge.

Licensed by Central Bank of Bahrain as a Retail Islamic Bank Licensed by Central Bank of Bahrain as a Retail Islamic Bank

www.khcbonline.com www.khcbonline.com

ISLAMIC FINANCE Islamic banks are starting to develop products to cater to SME financing in an effort to grow their books and the sector.

WIDENING THE NET

While small businesses have traditionally had to rely on conventional financing, recent efforts by Islamic banks have started to make Shari’ahcompliant products viable funding options for the SME sector

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t the end of August, the Central Bank of the UAE approved its five-year strategic plan to achieve Vision 2021. The plan includes a focus on encouraging the banking sector to finance SMEs, while

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highlighting the legislative, regulatory, and supervisory environment for Islamic finance.

Islamic banks are looking to grow their loan books, while SMEs in the Middle East and North Africa (MENA)

are still finding it hard to obtain funding, whether conventional or Islamic. Yet thousands of SMEs across the region are in limbo because there are not enough Shari'ah-compliant banking services available, according to a

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Financing to the SME sector has traditionally fallen to conventional banks more than Islamic financial institutions mostly due to the lack of available Shari’ah-compliant products available to finance small businesses.”

– Ashruff Jamall, Partner and Global Islamic Financial Services Leader, PwC Middle East.

study, Islamic banking opportunities across small and medium enterprises in MENA, by the International Finance Corporation (IFC). In nine countries across the MENA region, the IFC estimates that SMEs are in need of up to $13.2 billion in Islamic finance.

Financing to the SME sector has traditionally fallen to conventional banks more than Islamic financial institutions mostly due to the lack of available Shari’ah-compliant products available to finance small businesses, according to Ashruff Jamall, Partner and Global Islamic Financial Services Leader, PwC Middle East. This has led to a degree of innovation in the Islamic

banking sector, focussing on SMEs and coming up with certain instruments that are now acceptable. A few Islamic banks are financing the sector, but there is still some time to go before they build up market share.

According to the IFC study, of the 36 per cent of banks in the MENA region that offer SME-specific products, only 17 per cent offer Islamic financing. The study also noted the potential for the conversion of an existing SME portfolio financed through conventional banking channels to Islamic finance– an opportunity worth approximately $4.1 billion.

In order to qualify for Islamic financing, the business sector needs to be Shari’ah-compliant. Certain sectors are completely forbidden, said Tarek El-Assra, Partner at the Dubai office of global law firm, Morgan Lewis. If the business is in any way related to alcohol, gambling, or the adult entertainment industry, it will not have access to Islamic financing. If, for example, the SME wanted to set up a small crowd-funding platform to lend to people on a conventional basis, that would also not be viable because

there would be interest related to the repayment.

FINANCING OBSTACLES One of the challenges preventing Islamic financing from going mainstream, according to Tariq Muhammad, Partner and Head of Islamic Finance at auditing firm, KPMG Lower Gulf, is a lack of awareness of how Islamic products are structured.

He added that banks would need to make an effort to educate all parties as to how these products operate within the context of SME financing.

El-Assra added that banks need to invest in people who are not only knowledgeable in Shari’ah, but who are Islamic finance professionals, with experience in both Islamic jurisprudence and banking. He added that there are many companies in the MENA region who are focussed on whether the lending option is Shari’ahcompliant or not, and refuse to borrow on a conventional basis.

“There is also a general lack of understanding when it comes to Islamic finance when compared to conventional financing; people can cont. overleaf

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ISLAMIC FINANCE

cont. from pg. 27

be quite sceptical of it. There need to be people who are able to talk about Islamic finance concepts with knowledge and authority to improve awareness,” said El-Assra.

He added that it is difficult for SMEs to raise funds because banks will not finance them, owing to the risk associated with lending to them; they do not have assets for collateral so the security is not there. But if SMEs do not have access to finance, the sector cannot develop.

Previously, when borrowers have defaulted on payments, there has been no legal protection for them.

The final draft of Federal Decree Law No. 9 of 2016 on Bankruptcy (the New Law) was recently passed and set to be enforced at the end of December 2016, and should allow struggling businesses to continue running and generate cash in order to repay loans.

“This law will apply to both conventional and Islamic financing, and should give Islamic banks looking to fund the SME sector some comfort, something conventional banks never had before the law was proposed.

Hopefully there will be an impetus for Islamic banks to get involved in financing SMEs, knowing that if there is a default or restructuring situation, the law will enable the customer to continue running their business,” said Jamall.

El-Assra added that, in conjunction with the bankruptcy law, there needs to be standardisation of Islamic finance contracts because one bank may claim to be Shari’ahcompliant while another would have an issue with the structures in place, and that mismatch creates confusion in the market. Regulating these contracts will help develop Islamic finance in the SME sector.

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ASSET-BASED FUNDING OPTIONS • Murabahah The bank purchases an asset on the borrower’s behalf, such as a AED 50,000 vehicle. The borrower buys the asset from the bank at a certain cost, say, AED 60,000, in instalments over a set number of years.

Essentially the bank makes AED 10,000 in profit. Economically it works out the same as a regular loan, but structurally the documentation is different as there are purchase and sale elements to the agreement.

• Ijarah The SME owner already owns assets as collateral which are sold to the bank, which is how the business owner receives capital. The SME owner leases back the assets over a fixed period, which is how they pay back the bank. The bank never takes physical possession of the assets. Under the terms of the contract, the bank will transfer ownership of the assets back to the SME owner, once the agreed amount has been paid. If a lawyer wants to open a firm, their ‘asset’ is their knowledge of the legal field, not anything tangible, so this financing option would not work for them.

EQUITY-BASED FUNDING OPTIONS • Mudarabah This is a silent partnership where the bank, the Rab al Maal, agrees to give the capital to the SME owner, acting in the capacity of the Mudarib, who invests that sum to make a return, and pay the money back. The documents involved have a specific schedule, stipulating that the cash will only be invested within specific parameters. The SME owner will use returns generated from the loan to pay back the amount, with a small profit element attached. In Islamic finance we do not refer to interest, but it works out the same way.

• Musharakah This agreement is structured like a joint venture between the bank and business owner, where the bank will contribute a sum and the borrower will contribute their own cash and they agree to share in the revenues from the project.

Banks show a preference for the asset-based instruments, the Mudarabah and the Ijarah, due to their simpler documentation and the ease of their implementation.

Source: Tarek El-Assra, Partner at the Dubai office of global law firm, Morgan Lewis

REMOTE WORKING SOLUTIONS

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Allowing employees to work remotely could benefit all parties, provided the correct infrastructure is in place and the system is not abused.

SOLITARY SPLENDOUR

While working remotely may seem like an obvious solution to finding a worklife balance, the pros and cons have to be weighed up carefully

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orking professionals across the UAE have expressed their desire to work remotely, according to a report commissioned by American software company, Citrix. The report considered the impact of mobility in businesses across the UAE, with 83 per cent of employees having already utilised the practise in some form, giving them a

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better work-life balance, and 82 per cent of employees stating that they would prefer remote working as it gives them more time to spend with their loved ones.

A recent survey conducted among 1,000 employees and human resources (HR) professionals in the country by YouGov for the Federal Authority for Government Human Resources (FAHR)

found that a growing number of employees in the UAE support the view people with flexible work arrangements tend to be more productive, and are happier and healthier, when they are allowed to telecommute and given a flexible schedule.

Flexible working arrangements have been rated as either good or very good by 64 per cent of all the respondents,

Being in the office to connect with employees is no longer necessary–you can connect with colleagues globally via video conferencing and conference calls.”

– Ruth Scott, Human Resources Director of classifieds website dubizzle

and are most preferred by 83 per cent of Emirati nationals. About seven in ten of the respondents said they are given the opportunity to work remotely across the UAE. Among those who follow flexible work arrangements, 37 per cent do their work from outside the office.

“Working remotely allows employees to focus–it reduces the distractions that can be faced in the office such as coffee breaks, smoking breaks, general chats and unavoidable interruptions from colleagues, ultimately leading to an improvement in productivity,” said Ruth Scott, Human Resources Director of classifieds website, dubizzle.

Remote working allows employees to eliminates the time that would otherwise be wasted on travelling to and from the office. This, in turn, translates into remote employees being in a better frame of mind when they are working, said Shaheen Haque, Territory Manager for Middle East and Turkey at call centre technologies and software solutions provider, Interactive Intelligence. However, he added that remote working isn’t for everybody.

“Certain positions such as admin and HR roles typically require staff to be physically present in the office and of course there are also those employees who perform better when they are personally monitored. Some people might abuse the system, whereas others need onsite management and

guidance. A business must therefore evaluate an employee and his/her job function before extending the option to work remotely,” said Haque.

Before making the decision, it would be prudent of management to consider the benefits to the company.

Haque explained that working remotely is not limited to ‘working from home’, adding that sales staff and those who are highly mobile can greatly benefit from rapid access to corporate data whilst on the go. Enabling employees to work remotely also means that business is no longer restricted to office hours alone.

From a cost-saving perspective, Scott added that there can also be longterm financial benefits for businesses, as working remotely reduces electricity and other utilities’ usage by employees when working in the office, and that employees are generally motivated to get things done when they are given autonomy and flexibility in how they deliver in their work.

REMOTE EMPLOYEES AND CLIENTS When deciding whether or not to implement remote working solutions, management also has to consider the company’s clients, because if they do not benefit from the arrangement, then the exercise becomes moot.

Scott said that in most cases, employees can manage client relationships remotely through phone

and email just as effectively as from the office. She added that the flexibility that comes with working remotely also means employees can visit their clients at their offices as and when needed.

Ultimately, it comes down to good time management and scheduling meetings with clients when necessary.

“Some clients prefer online or Skype meetings and, at times, may need to discuss confidential information at short notice. In such cases, working remotely would benefit them since employees are easily able to seek a more private location to discuss issues over a video call if needed. This would result in saving time as well as travel costs,” said Scott.

In some instances working remotely is unavoidable; auditing and IT firms, for instance, often need to have employees on site at clients, and the close proximity results in better communication and faster troubleshooting. This helps foster meaningful and lasting relationships that lead to better partnerships.

“At the same time, with the right communication and collaboration tools, these remote employees can still have access to corporate data, connect directly to colleagues via voice and video mediums, and access the applications they require. As a result, they can work at least as effectively as if they were present at the physical corporate office,” said Haque. cont. overleaf

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REMOTE WORKING SOLUTIONS

cont. from pg. 31

From the technological perspective, Haque said that working remotely comes with its own set of challenges, which include resolving technical issues. Even though employees working from home or other 'out of office' locations will typically be provided with the right tools such as a laptop and smartphone, they will not have anyone on hand to assist them if they have technical challenges.

“To resolve this, it pays to create a detailed troubleshooting guide for commonly occurring challenges. With the right solution, IT teams can view an employee’s desktop remotely and even guide the user to the appropriate website to assist in resolving issues.

Remote working does provide great benefits, but just like anything else in business, it must be managed well,” said Haque.

Companies also have to look at their IT infrastructure to ensure employees working remotely do not put it at risk, though Haque explained that the technology exists to address this. Virtual Private Networks (VPN), secure routers, endpoint security solutions and firewalls are all effective at safeguarding company assets, even if they are outside company premises.

“Guidelines and policies need to be emphasised. Educating employees about security best practices and leveraging monitoring solutions to introduce accountability are effective ways of enabling remote working in a secure manner,” he said.

Challenges facing employees who work remotely are not only technological, but also personal, as working in isolation could be difficult in terms of managing their time and could also affect their relationships with management and their colleagues.

Scott added that working remotely requires a certain level of self-discipline to ensure that a positive outcome is

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achieved, and unfortunately, this type of policy can be abused. On the other hand, some employees can face the challenge of maintaining a healthy work/life balance because they can find it difficult to switch off from checking their emails and responding to work calls beyond set working hours, which is not encouraged.

“Being in the office to connect with employees is no longer necessary– you can connect with colleagues globally via video conferencing and conference calls. Of course, employees need to maintain a constant dialogue with their teams; therefore, when working remotely, an open channel of communication is expected,” she said.

Haque said that when employees first gain the ability to work remotely, they are happy, productivity is high, absenteeism goes down and quality improves, but inevitably remote workers tend to engage less with in-house staff.

“This is why it’s highly recommended to bring remote employees into the office as often as once a month. Also, video chat or conferencing enhances engagement and should definitely be incorporated as a communications tool,” he said.

Finally, while employees may enjoy their new-found autonomy in the workplace, managers need to have a contingency plan to ensure the system isn’t abused. Scott said that with more than 160 employees and an IT infrastructure that allows any employee to work in any location globally in a safe and secure way, it can be difficult for the HR team to closely monitor remote working policies, particularly in cases in which they are being abused.

Haque added that using the right IT platform can help monitor abuse.

Using one of their own tools, he said managers at Interactive Intelligence

have the ability to monitor and record employee behaviour at a granular level.

“This means knowing when an employee turned their system on, what emails were sent, what voice calls were made, and what was worked on from a content management perspective.

This introduces a high level of accountability and discourages the abuse of privileges,” he said.

HOW TO IMPLEMENT REMOTE WORKING SOLUTIONS • Establish guidelines and policies and evaluate employees to determine who should be eligible for remote working.

• Invest in the right technologies and ensure that security is a consideration from the very start.

• Give employees the right communication and collaboration tools so that even when they are out of the office they have access to the information they require and do not feel disconnected from their colleagues.

• Ensure monitoring to introduce accountability.

• Constantly review the latest developments in the market to ensure that your organisation is following best practices.

Source: Shaheen Haque, Territory Manager for Middle East and Turkey, Interactive Intelligence

Business

ision awards 2017 APRIL 2017, JUMEIRAH EMIRATES TOWERS

8TH JANUARY 2017 NOMINATIONS OPEN

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APRIL 2017 BUSINESS VISIONS AWARDS 2017 AWARDS GALA DINNER For more information on the Business Vision Awards 2017, please contact Napoleon Estampador nap@cpifinancial.net Tel: +971 4 391 4680

CASE STUDY

FANCY A DATE? The Bateel brand has grown into a leader in the gourmet food industry, without compromising its standards

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he idea for Bateel, a gourmet food company, came about 25 years ago due to a bout of homesickness, according to Tina Memic, General Manager for Retail, Bateel. Ziad Sudairy, the company Chairman, was travelling from the US to KSA, via Zurich. He overheard a Swiss lady, who was purchasing a box of chocolates, say she was taking a bit of ‘home’ with her back to KSA. He wanted to create something that could communicate Arabian hospitality and tradition, the way Swiss chocolate does for Switzerland. He decided to create gourmet dates.

The brand was first launched in 1991, having developed the product in Al Ghat, Saudi Arabia, a town with the ideal climate for date production,

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and over the years the gourmet products were developed. After producing gourmet dates, the brand then included date chocolates, then fine chocolates, and finally sweet and savoury gourmet foods.

Bateel, an ancient Arabic word for the off-shoot of a palm tree that allows the plant to propagate, signified the company’s aspirations, said Memic.

Despite the 25-year growth period, the same motivation and expansion remains at the core of the business.

The brand that started with 12 people in 1991 now has 1,600 employees, and today has a market presence in 15 countries and 58 locations, with operations anchored across farming, manufacturing, sales and distribution, research and

development, and brand management.

“Bateel supports its growth strategy by investing in production assets which include extensive date groves and processing plants, as well as several modern chocolate and biscuit production plants. The product development team continuously upgrades the existing range and creates new products that are either produced in Bateel plants or outsourced to producers with specific expertise,” said Memic.

Bateel partners with external suppliers from Europe, namely Italy and France, and Asia, and while high-quality ingredients are a priority, Memic said it is also important for the ingredients to be organic and for suppliers to follow fair trade regulations.

We started with dates that are healthy, so why not offer food that is healthy? We create simple dishes that are produced with organic ingredients.”

– Tina Memic, General Manager for Retail, Bateel

The humble date started the brand that has become a leader in the gourmet food industry.

When sourcing chocolate, Bateel representatives ensure that cocoa beans come from suppliers that do not use child labour. Overseas factories are visited regularly to ensure the ethical standards set forth by the company are adhered to.

FROM RETAIL TO RESTAURANTS In 2007, Bateel made the move from retail to expand into the café business, opening the first Dubai-based Café Bateel in Al Manzil, with branches in the DIFC and Dubai Mall following in quick succession. Despite Bateel being an established brand that could finance the expansion independently, Memic said making the transition from retail to food and beverage came with its own set of challenges.

The first consideration was how to offer good food at the same high standard across the cafes on a daily basis. Memic said this problem was overcome by operating a central kitchen that prepares all the ingredients and pastries for all the cafes on a daily basis, and that is part of the reason for the company’s success; everything is prepared in-house from the best ingredients that could be sourced from around the world “People often do not understand why we moved from being a luxury retailer to being a restaurant operator.

We started with dates that are healthy, so why not offer food that is healthy?

We create simple dishes that are produced with organic ingredients,” said Memic.

Memic added it is also important that the dishes are special to the café and not available from any of their competitors.

They only cook with olive oil and not butter, they use labneh instead of cream, their couscous salad has chopped dates, and their risotto is made with farro, a type of wheat grain, instead of rice. Their millefeuille (rice cake) is sweetened with date syrup instead of sugar, and the foul (a traditional Arabic dish) is made with beans from Umbria, Italy.

Even in difficult economic times, the food and beverage industry does not suffer, said Memic, because people will save in terms of luxury goods and high-end fashion, but they will not sacrifice good food, and because of this Bateel has not been affected by the current economic slowdown. cont. overleaf

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CASE STUDY

cont. from pg. 35

“The food and beverage sector is among the few that is still performing above last year’s sales and this will continue as such. Also, the current economic dip is temporary; things will improve until the end of the year and in 2017 it should be stable again,” she said.

Maintaining the brand values of the company was non-negotiable, with emphasis being placed on the design of the stores and cafés. This involved building close working relationships with designers, architects, project managers, and maintenance teams to ensure they understood what was required in terms of brand presentation.

“Our major investment goes into finding the perfect locations and ensuring each has a luxury fit out, and this creates visibility in the market place, and is the best marketing we could do. Our brand presence is crucial but we do not believe in advertising in magazines, other print media, or billboards. But we are very active when it comes to social media and PR,” said Memic.

EXPANSION In 2015, the Café Bateel flagship store was opened to combine a Bateel retail store, the café and their bakery under one roof. The Walk in JBR was chosen as the location given its popularity among tourists and residents. As a lifestyle brand, Memic said easy access for consumers is one of the first considerations when opening in a new location.

“Dubai is a great place to test the waters. With so many tourists visiting the emirate every year, we get great feedback from clients from Asia, the US, and Europe,” she said.

2016 has been a great year for Bateel, having opened a total of 10 boutiques and 10 cafes in different locations, and the rate of growth is expected to continue in 2017 and 2018. Markets that will be focussed on are Kuwait, KSA and Qatar, with expansion into Detroit, USA and Geneva, Switzerland by the end of this year. She added Bateel is looking to expand the retail network in Asia and management is currently reviewing Indonesia, Malaysia, and Singapore.

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Café Bateel stands apart from its competitors by tailor-made menu offerings in line with the brand’s luxury standards.

BATEEL THROUGH THE YEARS 1991 – Bateel opens first boutique in Riyadh, KSA 1992 – Bateel launches first boutique in UAE 2000 – Bateel creates its date chocolate 2006 – Bateel enters the UK market 2007 – Café Bateel is born in the UAE 2011 – Café Bateel expands into KSA 2013 – Café Bateel opens first outlet in Abu Dhabi 2015 – Bateel opens flagship store in Dubai 2016 – Café Bateel opens largest outlet in KSA 2016 – Bateel celebrates 25 years 2016 – Bateel enters Kuwait market Source: Bateel

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FACETIME

HAPPINESS: SERIOUS BUSINESS Workers in the UAE cite work as being their largest obstacle to well-being, although measures taken by the Government and by companies can solve this

A

round 42 per cent of UAE employees describe their offices as stressful, according to a new report conducted by market research firm IPSOS in partnership with office furniture firm Steelcase Inc. The Engagement and The Global Workplace survey interviewed 564 employees under the age of 45 in the UAE as part of global research covering more than 10,000 employees. Only 47 per cent of UAE employees believed their company took an interest in their wellbeing, health, and safety, compared to a global average of 54 per cent.

Disruption and stress had the highest negative impact on employees’ level of satisfaction with their work environment, according to the IPSOS report, while independent studies by international health insurance provider, Bupa Global and Oman Insurance, suggest that 89 per cent of people surveyed in the UAE think they could be leading a healthier life, with half those people saying work gets in the way of a healthy life.

“We are at the point where there is an imperative to create a wellness agenda within the workplace so people can control their own well being while

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at work, rather than seeing them as two separate issues,” said Karim Idilby, General Manager, Bupa Global Middle East.

Companies, particularly SMEs, view implementing wellness programmes as a cost which require allocation of resources, which Idilby said is a cost that is already being incurred, through absenteeism, reduced productivity, and lack of retention because people might be burned out from stress. Bupa Global’s studies estimate that less satisfied employees tend to call in sick an average of 1.25 more days a month, or 15 days more per year.

“Well-being encompasses everything: the nutritional, the mental, the psychological, and physical states of a person. It needs to be put on the agenda because it is as important as any other expense on the profit and loss (P&L) statement. It could cost nothing and managers could still implement an agenda,” said Idilby.

The most prominent way that work impacts well-being through reducing the amount of time that employees can exercise. Idlby suggested that it’s in people’s minds that they go to the office, do the work, and then leave. Afterwards they go to the gym in order to get healthy

or destress. Work and well-being are seen as mutually exclusive.

BRINGING WELLNESS TO THE WORKPLACE When the idea of a wellness programme is put to managers, the first thing they think of is providing a bowl of fruit, which actually incurs a cost. While they can go all the way to providing fruit or healthy snacks to their employees, they could also create groups to take part in sports together after work.

“Even encouraging movement around the office can work. Some companies will take bins away from each desk and have central bin points, which forces people to get up and walk when they want to throw something away,” he said.

Given the hours workers spend commuting in rush-hour traffic, implementing flexitime and remote working solutions go a long way to assisting employees strike a better work-life balance. Although 80 per cent of interviewees said they like their work, only 57 per cent, compared to the global average of 44 per cent, considered their company an

– Karim Idilby, General Manager, Bupa Global Middle East

appropriate place for them to work, and a fit for their lifestyle, according to the report by IPSOS. “Digitisation and remote models of working are gaining popularity and the nine-to-five model is no longer appropriate. It is so easy to connect to the workplace now, and as long as the right governance is in place to ensure the job is getting done, then there is no reason why employing these models to accommodate you people cannot be employed,” said Idilby.

Deciding what constitutes wellness in the workplace and which programmes are to be implemented cannot be dictated to an organisation by its management. Managers should ask their people what wellness means to them, and what they would like to see introduced. Tools such as Survey Monkey allow employees to contribute their ideas, anonymously, from which managers can select a few to implement. That way the staff feel engaged and that they are part of the solution.

The UAE Government recently created the Ministry of Happiness and appointed HE Ohood hint Khalfan Al Roumi as its minister, to focus on

the National Happiness and Positivity Charter. The Charter outlines the Government’s commitment to creating an appropriate environment for the happiness of individuals, families and the community.

In order to achieve these plans it was announced that a team of government agencies and a federal budget exceeding AED 48.5 billion were put in place to contribute to work on improving various spheres of life, allowing people to enjoy better health that saves billions allocated for health and therapeutic sectors. With recent health reforms, the message is being sent that the Government trying force wellness up the agenda by mandating health insurance.

“It is a clear statement by the UAE Government that happiness, and being happy, will ultimately drive one the most innovative and entrepreneurial countries in the world to greater things,” he said.

Not only does implementing a wellness programme not have to cost a company anything, but outside experts can be brought in to assist business owners who need to know the services they have at their disposal.

“One thing we have seen in the UAE is larger groups or companies are

keen to have the insurer play a part in wellness days. But when you move down to the smaller organisations, it seems to be less of a priority, despite being a service that can be offered for free,” Idilby said.

He added that since SMEs are not exempt from having mandated insurance, they should actively involve their insurer to create a workable, well-being agenda. Because while health insurance is only one part of it, having this support from providers can really help a small business improve the well-being of staff.

WHAT SMES NEED TO KNOW

31% - Increase in productivity by happy people.

300% - Increase in creativity in happy people.

37% - Increase in sales by happy people.

20% - The margin by which companies with happy employees outperform their competition.

10% - Drop in productivity by unhappy people.

Source: Figures provided by Bupa Global and Oman Insurance

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It is a clear statement by the UAE Government that happiness, and being happy, will ultimately drive one the most innovative and entrepreneurial countries in the world to greater things.”

FRANCHISE

STAY KOOL

K. T. Govindarajan, President, KAPICO Group, is growing the V-KOOL business for a total car protection system

V

-KOOL, provider of high-visibility window tint, has been operating in the GCC since 2003. KAPICO Group Holding Co. KSCC is a privately-owned international corporation with more than 40 subsidiary and joint venture companies spread across 11 countries and is

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the master franchisee for V-KOOL in three regions: United Arab Emirates, the State of Kuwait, and the Sultanate of Oman. The business operates out of its own retail outlets, supplies and installs V-KOOL automotive tints, and has expanded to supply window films for the architectural market.

The company is in the process of converting the business model into full-fledged premium car care centres to provide a total protection solution for its customers, according to K. T. Govindarajan, President, V-KOOL Corporate, KAPICO Group. Apart from a range of window tints and paint

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We created a niche segment which was previously non-existent.

We started with advertising in the classifieds section and slowly moved to the more mainstream platforms.”

– K. T. Govindarajan, President, Performance Films and Car Care Business, V-KOOL Corporate, KAPICO Group

V-KOOL window tints offer less and glare from the sun, while keeping the interior of the vehicle cooler by reflecting heatbearing infra-red waves.

protection products, which are solvent resistent and protect against scratches, the company will soon include upholstery protection for car interiors to its portfolio.

The company currently has five retail showrooms in prime UAE locations and also has a presence in some of Dubai’s malls. It also has four outlets with strategic partners.

“We are a pure retail brand and we service our customers in our outlets.

Some of our channel partners are trading enterprises such as Honda, JEEP, Chrystler, and Dodge. In Abu Dhabi our strategic partners are Emirates Motor Company and Ali & Sons, among others,” he said.

He added that as a master franchisee, the business owners are

involved in building the brand in all three countries through the retail network.

“As Dubai is open for a Kuwaiti national to open their business, we operate directly in all other emirates, except Abu Dhabi, under the umbrella of KAPICO, which is part of Al Ghannam Group of Kuwait. In Abu Dhabi and Al Ain we have a local partner,” he said.

Choosing the first location was not difficult, and the 929-square metre outlet was opened on Sheikh Zayed Road next to Giordano and Al Tayer motors. All major premium car dealers have their showrooms in and around the area, and the company is within the reach of the affluent residential and business community such as Jumeriah and Business Bay. It was a challenge to promote the brand, because Govindarajan said there was no window tinting player who had previously advertised when the brand launched.

“We created a niche segment which was previously non-existent.

We carefully analysed the trends, researched consumer behaviour, and realised the existence of huge potential in the market. We started with advertising in the classifieds section and slowly moved to the more mainstream platforms,” he said.

V-KOOL is a costly product, so awareness campaigns had to be created and demonstrations were organised for consumers and the dealerships to feel the difference in temperature in the vehicles that the VKOOL window tint provided, owing to

its infra-red reflection capabilities. He added that the time spent in the region allowed the company to develop tailormade packages that suited the climatic conditions, creating a combination of two films that rejects more than 90 per cent of heat once installed.

AUTOMOTIVE SECTOR OUTLOOK Govindarajan said that apart from a few units assembling truck and bus components and some armoured vehicle factories, there is no significant automotive manufacturing activity taking place in the UAE. The UAE’s strong economic growth, solid household spending and increased access to vehicle financing are set to be the drivers for the automotive industry over the coming years.

He added that the estimate of the UAE’s population was revised upwards and will reach roughly 10.8 million over the next five years, according to the IMF’s latest World Economic Outlook.

With an estimated 70 per cent of the UAE’s population within the 20-39 year age bracket and a rising GDP per capita, the UAE’s automotive sector growth outlook is positive, with sales in this region expected to grow at 10 to 15 per cent year on year, and after sales services are likely to keep up with the expected growth.

Change is inevitable. With the rapid advancement in technology, hybrid and eco-friendly vehicles might conquer the market, and advancement in technology might bring in-built technology to combat heat penetration.

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START-UP

BLOOMIN’ GORGEOUS Kanta Jethwani, CEO, Bloom Aesthetic and Laser Clinic, set up her clinic in the same area as her competitors and made it thrive

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loom Aesthetic and Laser Clinic was launched in December 2015, by CEO, Kanta Jethwani.

The idea was first conceived in the beginning of July 2014, when Jethwani and her partner, Vidhi Khubchandani, decided to move into the aesthetic field.

Jethwani said they realised there was a market emerging for non-surgical options, such as skin-enhancing treatments, hair loss solutions, skintoning, weight loss programmes, skin rejuvenation treatments, and laser procedures; and in order to understand the industry completely, she studied in the UK for two years, not only to get the best training, but to be exposed to a market she believes has high standards.

Jethwani took her time to find the right team to train to the clinic’s standards. Once she was sure which machines she wanted in the clinic, she advertised for therapists on classifieds website, dubizzle. At the interview stage, Jethwani knew who would be a good fit for the clinic based on their experience and if their skills would work with the machines at the clinic.

“The therapists were then trained by the companies from whom I purchased the machines. I also decided which products I would need in the clinic and the therapists were trained accordingly,” she said.

With financial backing from a family member, the business was able to open smoothly. The clinic is located on Al Wasl road because Jethwani wanted to be close to other clinics, despite

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Kanta Jethwani

facing competition. Standing out from her competitors made marketing on a limited budget a challenge and she invested in the services of a PR agency.

“The PR helped with the launch event of the clinic by bringing in the media, which got us a lot of publicity.

Additionally, we are very strong on our Facebook, Instagram and Twitter platforms. Currently, we are partnered with several firms such as Nakheel, BareFace, Dubai Aviation Club, and a number of banks which helps bring more customers to our clinic,” she said.

Suppliers

Jethwani partners with external, international product suppliers, such as Elemis and Zo Obaigi, which are known within the beauty industry.

The suppliers are chosen according to the survey conducted while she was still in the UK, as well as the

doctors’ recommendations based on their past experience with the companies. She used to visit Londonbased clinics where she could ask questions, and everyone was very helpful in explaining which products were good.

“I have also done a trial of all the machines and products on myself to ensure that my customers receive excellent results,” she said.

Jethwani’s expansion plans are cautious. As Bloom is a start-up clinic her priority is to build her clients’ trust in the clinic and the products. In the near future, she plans to introduce hair grafting and 4D Liposuction procedures before opening more branches. She said she will open the next branch of Bloom clinic in Abu Dhabi mid-2017 because many patients come all the way from Abu Dhabi, and she believes there is a big market for non-surgical procedures there.

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TECH FOCUS Warehouse automation can streamline processess and allow businesses to attain their expansion goals.

AUTOMATIC GROWTH

By automating early, businesses can focus on expansion an increase demand quickly, which is especially beneficial for e-commerce start-ups, according to FrĂŠdĂŠric Zielinski, General Manager, Swisslog Middle East

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arehouse automation is widely deployed by large businesses that have recognised a need for more cost-effective and less labourintensive solutions to managing large amounts of stock, but small businesses can benefit from these solutions as well.

Businesses that have invested in automation for their warehouses needed a more productive, streamlined approach to their warehouse operation.

With a helping hand from warehouse automation specialists, businesses large and small have succeeded in achieving this and conquering their growth goals.

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Smaller businesses should have warehouse automation solutions on the agenda. While they may not face the problems of high demand yet, investing in minor changes early on means that their operation is adaptable for more automation to be installed when required. If small businesses consider the benefits of futureproofing their facilities, they may find that when their operation becomes busier, in line with growth ambitions, further steps can then be implemented to automate processes with as little disruption to the business as possible.

A futureproof facility can be as simple as having a new warehouse management system (WMS) implemented, or automated transport installed. This gives businesses the building blocks to start thinking about more complex designs, extensions or modernisations of operations when demand increases. However, it is important to consider future steps from the beginning and to grow with flexible systems and warehouse designs.

Another concept that small- and medium-sized businesses would benefit from having on their radar is Industry 4.0, the current trend

When doing nothing, other unanticipated costs can arise as the business grows, from lost revenue due to missed delivery dates, or inaccurate or damaged orders.”

– Frédéric Zielinski, General Manager, Swisslog Middle East

of automation which includes cyberphysical systems, the Internet of Things and cloud computing. This may seem like a term used only by larger enterprises with the capital to invest in the Internet of Things concept for large volumes of stock keeping units (SKU), but by integrating Industry 4.0 concepts and technologies, small businesses can provide individualised products and services and digitalised equipment that will be highly adaptive to demand changes. Introducing digitalised operations to a small facility is also less likely to be as time-consuming as introducing it to a large distribution centre, and allows small firms to expand their connectivity as the business grows.

Less time implementing and installing new concepts and solutions will also mean there is more time to focus on expansion, which can often come at a rapid rate, and demand can increase particularly fast for e-commerce start-up businesses.

Thrive Market, one of the United States’ fastest-growing e-commerce companies, is a membership-based online platform focused on making healthy living easy and affordable for all. The California-based start-up needed to design and implement a distribution centre (DC) to keep pace with its rapid growth.

The challenge for Thrive Market was to deliver goods faster and to more customers.

Within its first year, the company outgrew its original facility because of membership growth, increasing order volume and the number of SKUs–up from 2,500 at launch to more than 4,000 today.

The DC design can handle a wide variety of SKU volume and velocity.

The highly flexible and scalable solution includes four split-case pick modules, cart picking from bin rack locations, cold-storage picking and pack-out stations.

As a result of the flexible solution provided, Thrive Market successfully shaved 24 hours off shipment times and increased productivity in their picking function by 20 per cent.

JUSTIFYING INVESTING IN AUTOMATION Many business leaders will tell their warehouse managers to make do with what they have, believing they are avoiding new expenses and capital investments. While avoiding or delaying investment in operational improvements may seem like a prudent course of action, or more properly inaction, it may quickly result in increased costs to the business.

Even for companies that are static or slow growers, they still must meet customers' demands and match or outperform competitors.

When doing nothing, other unanticipated costs can arise as the

business grows, from lost revenue due to missed delivery dates, or inaccurate or damaged orders. In more extreme cases, the distribution centre fails to meet customer service level agreements or expectations, and customers are lost forever.

Nevertheless, constraints on capital are real, especially at growing companies because they're buying inventory at increasing rates. They have to choose between investing in the infrastructure for manufacturing, marketing or sales before contemplating investment in distribution infrastructure. Investment in distribution modernisation also competes for funding with building construction and rental and operational expenses.

Given all of these challenges, decisions about capital investment for distribution are fully informed only when the cost of doing nothing in the warehouse is weighed against the cost to automate and modernise.

Doing nothing brings with it significant hidden costs.

Growing e-commerce start-up businesses are especially at risk of these challenges, as sales can very easily rise in a rapid manner, increasing the likelihood of distribution centres falling behind due to a lack of modernised warehouse automation to support them in realising their growth ambitions.

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TECH FOCUS

SAFETY LAYERS A multi-layer approach to cloud security can mitigate the fears of an organisation that has not made the move, explains Scott Montgomery, Intel Security

S

ecurity has long been the principal fear that weighs on cloud investments. While perceptions are improving, Intel Security’s recent State of Cloud Adoption study found that data breaches remain the biggest concern of companies deploying Software as a Service (SaaS), Infrastructure as a Service (IaaS), and even private cloud models. A 2015 survey by Crowd Research Partners found that nine in 10 security professionals worry about cloud security.

These concerns, however, are not stopping enterprises of all sizes from investing in the cloud. The Intel Security study found that while the survey shows that confidence in cloud security is increasing, only one-third of respondents believe their senior executives understand the security risks.

Investments in cloud security should be commensurate with the

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level of migration to cloud services.

But budgeting for security in the public cloud is distinctly different than planning for on-premise prevention. One fundamental shift is that cloud providers use a ‘shared responsibility model’ that spreads risks between vendor and customer.

Another difference is that customers do not buy the same mix of products and equipment to secure the cloud that they do in the data centre.

Budgeting for security in the public cloud begins by considering which applications and infrastructure components will live there. Some, such as website hosting and document serving, are of relatively low risk and do not demand the most stringent safeguards. Consumption models also have to be considered.

SaaS providers generally assume responsibility for security at the application and system levels.

However, IaaS providers tend to cede those responsibilities to the customer.

What’s more, no public cloud provider is likely to assume responsibility for user access and data protection; although there are measures they can take to support your own efforts.

LEVELS OF SECURITY There are three levels of security to consider when building out a public cloud strategy. The first, System-level security for IaaS, is secured plumbing: systems-level components such as operating systems, networks, virtual machines, management utilities and containers. Here, you want to invest in cloud providers that make it easy for you to keep your systems current with the latest patches and updates.

The service provider should also provide thorough visibility into your cloud instances so that you can see all instances that are running.

If a cloud provider insists on owning your encryption keys, you have no guarantees that your data will be safe.

Seek another provider.”

– Scott Montgomery, Vice President and Chief Technology Officer, Public Sector, Intel Security

One of the challenges of public cloud is that it’s so convenient to spin up new virtual machines (VM) and containers that you may forget to shut them down later. These so-called zombies are latent security threats because they present potential attack vectors into more business or mission critical systems.

If you plan to use containers, as a growing number of enterprises are, be diligent about the level of security protection they offer. The market for containers is still immature, and security–while improving–is considered one of the technology’s weakest areas.

Remember, you are responsible for system-level security in your Infrastructure as a Service (IaaS) and Platform as a Server (PaaS) instances. Integrating these security controls and reporting in with your on-premises systems will create efficiencies. Be sure to include the appropriate controls for the type of server employed. These may include tools such as intrusion prevention, application control, advanced antimalware solutions and threat detection. These should all be centrally managed for visibility and compliance in addition to policy and threat intelligence sharing with your on-premises infrastructure.

The second is application-level security, which is primarily about identity and access management.

Your best investment here isn’t financial; it’s a policy that limits the ability of users to deploy cloud applications without IT’s knowledge.

After ensuring policies are in place that offer IT visibility, the next step is to invest in multifactor authentication and identity management. The first approach uses two or more devices or applications to permit access.

Identity management locks down application access by requiring users to authenticate through a secure resource such as lightweight directory access protocol (LDAP) or active directory. If your organisation already uses a directory, consider investing in cloud brokering software that supports single sign-on so that users can authenticate to all their cloud services through their local directory. This gives IT complete visibility and shifts access control from the cloud service to your own IT organisation. Consider also investing in a secure VPN tunnel so sessions are never exposed to the public internet.

Third is data-level security. This level of protection involves securing the data itself. No cloud provider will take responsibility for your data,

but there are solutions you can purchase to help.

Many cloud providers, for example, offer encryption as a standard option, but you may be surprised at how many do not, or who encrypt data only part of the time. Anything less than 256-bit encryption is considered inadequate these days.

More important is that you have full control of the encryption keys.

If a cloud provider insists on owning your encryption keys, you have no guarantees that your data will be safe.

Seek another provider. In addition, make sure your data is unencrypted only when in use. Some providers require that data be transmitted to their facilities in plain-text format.

That is a security risk.

Whatever cloud provider you adopt, make sure their security guarantees are spelled out in their contract and service level agreement (SLA). A good contract should spell out exactly what procedures will be employed, along with any penalties the provider will face for non-compliance, how they will report upon it, and how you can audit to ensure your contractual terms are being met. A strong SLA ensures that you do not simply toss the keys to your cloud provider as you’re walking out the door.

WWW.FINANCEMIDDLEEAST.NET

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BEHIND THE SCENES

Behind the scenes Jo Jobling, Owner, Jo Cole Photography

What are the benefits and drawbacks of owning your own business?

The main benefit, especially here in Dubai, is that I can structure my days around my children. I can be there for school pick-ups and school dropoffs, I can take them to after school activities, I can be around during the half-term and school holidays.

The drawback is that I have to work longer hours in the evenings, once I’ve put them to bed. The hours creep up on me; I have to reply to my emails and work on edits that I need to do. Trying to find a work-life balance can be very difficult.

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TO SEE MORE FROM OUR DAY ‘BEHIND THE SCENES’ WITH JO COLE PHOTOGRAPHY, VISIT WWW.CPIFINANCIAL.NET FOR OUR VIDEO INTERVIEW, AS WELL AS A SLIGHTLY MORE IN DEPTH ARTICLE. WE ARE ON INSTAGRAM: @FINANCE_MIDDLE_EAST, TWITTER: @FIANNCEMIDEAST, AND FACEBOOK: HTTPS://WWW.FACEBOOK.COM/FINANCEMIDDLEEAST/

What are the benefits to hiring a professional photographer for a wedding?

Many people don’t see the benefit of using a portion of their wedding budget for the photography or the videography. They are willing to use large parts of their budget for décor and flowers, but they don’t understand that at the end of the day, their photo album is the only thing they’re going to have left. Everything else is just over within a day. The photographs are what keep that memory alive.

If you feel that a fee is too high, research your photographer, meet with them, and make sure you see all of their work. Let them show you previous weddings they’ve done from start to finish so you have a good idea of what you’re going to receive at the end of it. This is a one-time only day; you’re never going to have this event again. So you need to make sure those memories are captured forever in the correct way.

Is there any kind of photoshoot you would love to do, or repeat?

Yes. I follow many photographers from around the world, specifically the UK and US and they’re always lots of alternative shoots, which you don’t seem to see much of in Dubai.

The main thing I would like to do is a ‘trash the dress’ shoot. After the wedding, the bride and groom wear their wedding clothes and basically destroy them. I have done one once before and I took the bride and groom down the beach. She was in her wedding dress, he was in his morning suit, and they went into the sea and had fun.

I would love to take a bride and groom somewhere like Satwa, somewhere a bit more urban and different, and have the groom splash paint of all different colours all over the bride’s dress.

But nobody has been brave enough to take me up on that offer yet.

What advice would you give to anyone who would like to make a career out of photography?

I studied photography at university, but you really don’t have to. I didn’t need to have that qualification. I chose to study it because it was a hobby that I wanted to continue. But photography is something that, if you’ve got a passion for it, you can learn. There are so many YouTube tutorials and so many photographers that are willing to talk to you and give you advice. There are plenty of workshops around Dubai, so anybody can start it up, providing they have that passion and drive and motivation.

When I started I was much younger and my budget didn’t allow me to have the top gear, so I started with a very basic digital SLR and worked my way up to what I shoot with now. I would advise that you buy the best that you can afford. If you can’t afford the best, then go for something a little lower in the range and build your equipment up from there.

Then it’s just about practice and research and learning.

That’s all it is.

WWW.FINANCEMIDDLEEAST.NET

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LAST WORD

Time travel and talent retention VIVIAN GEVERS, MANAGING DIRECTOR, CREDENCE SECURITY, JUGGLES BEATING OUT THE COMPETITION FOR THE BEST PEOPLE, PROVIDING CYBERSECURITY SOLUTIONS, AND DEVELOPING A SOUND BUSINESS STRATEGY Generally, I spend a couple of hours at the beginning of the week planning and defining the targets/objectives for the week ahead. Things do come up during the week that need urgent attention, so I must constantly balance the executing of the planned activities and ensuring that the team is adjusting its priorities based on those events.

What is the most challenging aspect of what you do?

What does your current role involve on a day-to-day basis?

I am responsible for business strategy development, human capital acquisition, and customer acquisition, and business operations in addition to partner engagements. A typical day involves meeting with my local management team to ensure they are empowered to meet their objectives and targets for the day, followed by a conference call with my counterpart in South Africa to discuss open business opportunities. I try to ensure that I attend at least a couple of customer site meetings to maintain a close understanding of their needs and expectations and demonstrate our company’s commitment as a cybersecurity partner. Throughout the day I also attend to a barrage of emails to ensure smooth business operations.

How do you prepare for the day ahead?

I understand that I set the tone for the company. Therefore, I have a monthly plan, which is derived from my annual business plan that I share with the team in advance that has clearly defined goals and objectives.

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Human Capital acquisition, development and retention are my biggest challenges.

The IT industry in the region is competing for the same people. Being focused on cybersecurity, means it is even more difficult, especially considering the global shortage of over one million cybersecurity roles. The way I overcome this is by sharing the vision of our company and my management style of working with the best cybersecurity solutions, promoting training and certification for my staff to ensure they remain motivated and reminding them that we are on a shared journey with our clients who have entrusted us with being a key partner to protect their business. I also have an open-door policy and make it a point to ensure that the staff are always challenged and appreciated with their tasks and accomplishments.

How do you strike a work -life balance?

As a married executive with a three-yearold daughter I make sure that work-life balance is maintained. When I am at work, I am all about work but when I get home, I do make it a point to focus on my family and myself. I also promote this to my staff to ensure they also lead a healthy and fulfilling lifestyle as this directly reflects on their performance and temperament.

My weekday routine includes a session in the gym and then time with my daughter who keeps me on my toes! Given the stress of the job, I also make it a point to leave Dubai and travel when possible for long weekends.

If you were to thank one person for helping you become the person you are today, who would it be and why?

I was the operations manager at a telco in South Africa where I first met Robert Brown, who gave me the opportunity to build the business in the region. I consider him a mentor and friend but I am most appreciative of the fact that he has given me the freedom to run the business in the region as I see fit but at the same time, is always there if I need a sounding board.

What is your favourite travel destination?

Maldives What book are you currently reading?

The Girl on the Train What is the one quality a potential employee should have?

Motivation or drive Which character or celebrity do you most identify with?

Sarah Jessica Parker What super power would you like to have?

Time travel

Promoth Manghat

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