Entrepreneur Middle East April 2014 | I've Got the Power: Energy Opinion Leaders

FINANCIAL INSTITUTIONS CAN DO SOCIAL MEDIA… AND THEY EVEN WIN AN AWARD OR TWO

I’VE GOT THE POWER IT’S GETTIN’ KINDA HEAVY

ENERGY’S OPINION LEADERS GIVE YOU THE GOOD (AND BAD) NEWS

KNOWING WHEN TOO MUCH IS JUST TOO DAMN MUCH

NOT ALL PRESS IS GOOD PRESS, CONTRARY TO POPULAR BELIEF

ONLINE EXPERTS ADVISE YOU ON DIGITAL FOOTPRINTS

THE SUNK COST FALLACY AND YOUR INVESTMENTS

LEARN TO CHOOSE WHAT INTERVIEWS TO GRANT FOR YOUR BUSINESS

COMMON BLUNDERS THAT JEOPARDIZE YOUR COMPANY’S INTEGRITY ONLINE

9 772311 541008 > APRIL 2014 | ENTREPRENEURMIDDLEEAST.COM | UAE AED20

one and only The

The new Audi A8 L.

2

Entrepreneur

APRIL 2014

The world’s first Matrix LED headlights, dynamic design and an unparalleled collection of Audi interior luxuries. It can only be the new Audi A8 L. Available in 50 TFSI (310 hp) and 60 TFSI (435 hp).

For more information visit www.audi-me.com/a8

APRIL 2014

Entrepreneur

3

CONTENTS

APRIL 2014

18 20 Crescent

Petroleum’s Badr Jafar visiting the Mubarak oil platform

82

INNOVATORS: I’VE GOT THE POWER

MONEY: STARTUP FINANCE

Energy’s opinion leaders have some information to share with you.

Post Funding Buzz Simon Hudson walks you through what to do with your hard-earned startup cash.

Spending wisely and in the proper order is easy, when you plan it properly.

20

An Unstable Equilibrium in the Oil Market

By Badar Jafar

24

Energizing the Middle East

By Grégoire Poux-Guillaume

26

Water woes in the GCC? Get empowered

By Ahmed Bin Shafar

28

Chemical reaction Yogesh Mehta has quite a few opinions... about everything.

84 YOUR MONEY

The gold standard The World Gold Council is tinkled pink that gold has gone up in price.

88 MONEY: VC VIEWPOINT

The Middle East needs VC Arya H. Bolurfrushan discusses VC’s influence in fostering innovation in the MENA region.

28 Petrochem Middle East CEO Yogesh Mehta

4

Entrepreneur

APRIL 2014

APRIL 2014

Entrepreneur

5

CONTENTS

APRIL 2014

76

38

WEBSITE TO WATCH

‘TREPONOMICS: MARKETING

You scratch my back The co-founders behind WePul have decided that crowdsourcing an extended network of people could teach us all a thing or two.

13 FEEDBACK

You’re already talking to us!

14 EDITOR’S NOTE

By Fida Z. Chaaban

68 Abed Bibi and Husain Makiya wanna give you prezzies!

38 Saif al Mansoori talks about Emirates NBD’s adoption of digital marketing

50

56

Just in time!

Samsung concentrates on wearable technology.

TECH: MOBILE TECH

Whatspp with that?

IM doesn’t have to stop now that Facebook has acquired WhatsApp. Here’s a slew of alternatives.

SHINY

68 ONLINE ‘TREP

UAE startup duo is gifted These ‘treps both have a great deal of startup and seed capital know-how. See how they put it to work in their newest venture.

72 ASK A GEEK

Online brand alienation The 10 ways your brand can screw up large online. It’s easier than you think.

6

Entrepreneur

APRIL 2014

Banks can do social media too Saif al Mansoori talks about Emirates NBD’s aggressive adoption of digital marketing, and why your company needs to get active- as quickly as possible.

54 MARKETING

Own your online reputation Dana Khairallah discusses seven tactics that she’s put to work for her clients online, and how they can work for your brand.

APRIL 2014

Entrepreneur

7

CONTENTS

APRIL 2014

48 ‘TREPONOMICS: ESQUIRE GUY

The guide to uncomfortable conversations Ross McCammon shares a few pointers on how to navigate the sticky convos that come your way at work.

52 ASK A PRO

Choosing your press coverage Octavia Nasr educates you on which coverage to accept, and which to decline… gracefully.

60 Dr. Sarah Faisal Al Saud talks about her startup Anamil Tech

16 CULTURE: BUSINESS UNUSUAL

Pump it up Ray Ferrer left his corporate career to become a full-time artist. Here’s his take on corporate involvement in the arts.

74 Ramzi Rizk discusses his German-based portal EyeEm

42

60

TRAVEL

START IT UP: Q+A

The frequent flier’s guide to healthy skin part deux A skincare expert tells you how to keep your skin looking rested and alive despite the weekly work trips.

46 LIFE

Time management tomes Our book reviewer tells you which books to pick up that really are worth your time.

52 Octavia Nasr on determining corporate press strategies

8

Entrepreneur

APRIL 2014

Animiltech Dr. Sarah Faisal Al Saud talks about her startup Anamil Tech, and where humancomputer interaction comes into the equation.

74 WACKY IDEA

EyeEm a successful ‘trep!

Ramzi Rizk discusses his portal and mobile apps, in addition to the VC firms that helped him get his idea off the ground.

100s

of uncertainties

1

expert team to help you plan ahead

It’s good to have a trusted partner preserving your wealth

Wealth Management

To ensure a lasting legacy, wealth preservation is as important as wealth creation. Open and fund a Standard Chartered Priority Banking account and you’ll have a trusted partner with wealth management experience, who also welcomes you with up to AED 7,500* cashback.

Speak to a Relationship Manager today.

SMS ‘WEALTH7’ to 3993

800 4949

sc.com/ae/priority

*Offer valid from 2 April - 30 June, 2014. For new Priority Banking customers only. Eligible customers must fulfil amount funding and maintenance criteria in order to get the cashback. Terms and conditions apply.

For details, please visit www.sc.com/ae/priority

APRIL 2014

Entrepreneur

9

MIDDLE EAST EDITOR IN CHIEF Fida Z. Chaaban editor@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net +971556500688 PUBLISHER Nehme Abouzeid nehme@bncpublishing.net CREATIVE DIRECTION Concept and execution Entrepreneur Middle East ONLINE LIAISON Kareem Chehayeb socialmedia@bncpublishing.net WEB DIRECTOR Haydar Mtayrek CONTRIBUTING WRITERS Arie Amaya-Akkermans Arya H. Bolurfrushan Amal Chaaban Youmna Chagoury Kareem Chehayeb Tamara Clarke Walid Hassanein Simon Hudson Mohammad Hijazi Leslie Iddison

Badr Jafar Dana Khairallah Pamella de Leon Nita Maru Ross McCammon Wassim Mourtada Shoug Al-Nafisi Octavia Nasr Rani Nasr Grégoire Poux-Guillaume Ahmad Bin Shafar

Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

MIDDLE EAST

IS DIGITAL www.entrepreneurmiddleeast.com WE’RE HEAVILY INVESTED IN OUR WEB PRESENCE

SUBSCRIBE Contact subscriptions@bncpublishing.net to receive Entrepreneur Middle East every issue

PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Entrepreneur Middle East contact sales@bncpublishing.net All rights reserved © 2014. Opinions expressed are solely those of the contributors.

Entrepreneur Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Entrepreneur.

No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Printed by Raidy Emirates Printing Group LLC www.raidy.com

In addition to our print edition, we’re bringing you all sorts of industry news on our web mediums. Joining us online means getting relevant business and startup content in real-time, so you’re hearing about the latest developments as soon as we do. We’re looking forward to interacting with our readers on all of our social media and web platforms- like any thriving business, we’re looking to give and take. #TrepTalkME is already happening on all of our digi platforms, and all good conversations go both ways. See you on the web!

EntMagazineME @EntMagazineME | @FidaChaaban Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME

OFFICIAL LAUNCH PARTNER

12

Entrepreneur

APRIL 2014

WHAT READERS ARE SAYING

FEEDBACK

WE’RE ESPECIALLY MOTIVATED BY THE FEEDBACK WE’RE RECEIVING IN REAL-TIME ON OUR SOCIAL MEDIA PLATFORMS, SO WE THOUGHT WE’D SHARE SOME OF OUR TWITTER ANALYTICS SINCE IT’S ONE OF OUR MEDIUMS THAT IS DEMONSTRATING THE QUICKEST ORGANIC GROWTH. INTERESTS

60%

30%

10% 0%

STARTUPS

20%

LEADERSHIP

40%

BUSINESS AND FINANCE

50%

BEGINNING INVESTING

Our followers are over 70% male, indicating huge gender disparity. They’re also following likeminded publications and yes, inspiring entrepreneurs like Bill Gates, Fadi Ghandour and Sir Richard Branson, who you might have heard was recently in Dubai. (More on that in our Editor’s Note.) Our followers are primarily focused on the areas of business, finance, tech, and of course entrepreneurship. >>>

70%

BUSINESS NEWS AND GENERAL INFO

BY THE NUMBERS

TOP TWEET In March, the most highly tweeted and re-tweeted link was contributor Wassim Mourtada’s March VC Viewpoint article Attack of the Clones: Venture Capital in the Middle East. If you missed it in print, see it on our website in the “Money” section.

LOCATION, LOCATION Our GCC Twitter followers are primarily in Dubai when looking at our UAE audience. The next most popular GCC city that our followers hail from? Riyadh, KSA. Qatar, Egypt, Jordan and Lebanon also show up in our statistics, with decent representation.

APRIL 2014

Entrepreneur

13

EDITOR’S NOTE

Balancing act

IF ONE OF THE MOST FAMOUS ENTREPRENEURS IN THE WORLD CAN DO IT…

“

I

’m not sleeping, I’m not doing yoga…” That was me talking (okay, whining) to a friend two days before I met Sir Richard Branson.

“I really have no time for anything!” That was me making an excuse for not attending a friend’s party one day before I met Sir Richard Branson.

What’s my point? Meeting Sir Richard -easily one of the most famous entrepreneurs in the worldreminded me that in the grand scheme of things, I do have time. Or I have to make time. And I have to suck it up and do it with dignity.

Sir Richard was visiting Dubai for du’s CEO Forum and in addition to a morning engagement, he had a private press meet and greet (that’s when this image was taken).

Sir Richard Branson in Dubai for du CEO Forum

14

Entrepreneur

APRIL 2014

Later that evening he had a lengthy onstage dialogue with du’s affable CEO Mr. Osman Sultan. I’m not sure what he did between the hours of 4p.m. and 8p.m., but I can comfortably say that I am not as busy as Sir Richard. No one is, except maybe other major industry magnates at his level. The man jumped off a flight looking impossibly fresh, headed into a corporate event, addressed the press, and even managed to do some personal one-on-one PR afterward.

With a smile. With grace. And then that same evening he addressed a room full of the GCC’s business elite, and he did it with élan- the audience literally hung on his every word.

I was live-tweeting from the Forum- here are a few of the things Sir Richard said that I shared on social media.

1. “Don’t go into business unless you’re much better than the bigger competition.”

2. “The same way Apple went on after Steve Jobs died, Virgin will outlive me.”

3. “The people who run companies must be willing to let their people make mistakes and to innovate.”

4. “I was asked if I knew the difference between net and gross. I admit, I didn’t! I thought I was making a lot more money than I really was!”

I think the fourth statement -told as a whimsical anecdote- was part of the larger picture that Sir Richard was painting for the audience. Basically any ‘trep or businessperson launching and executing the impossible will experience a learning curve- be it technical knowledge or otherwise.

My learning curve is maintaining a work-life balance (in addition to other things), and I am going to master it. I met the man who is living proof that it can be done. One of the ways I’ve started to try and address my shortcoming? By asking every ‘trep I meet about how they actually make the viral buzzword a reality. If you’ve got work-life balance tips for me, send them my way via email or on Twitter; I’m pretty much always connected.

I hope that in our next issue I’ll be able to report that I’ve made good on my declaration to improve my balancing act (and whether or not I’ve made progress I’ll let you know).

Fida Z. Chaaban Editor in Chief Follow me @fidachaaban Email me editor@bncpublishing.net

APRIL 2014

Entrepreneur

15

CULTURE

business unusual | LIFE | TRAVEL | DESIGN

| business unusual |

Ray Ferrer pumps it up Turning your interest into a business venture

R

ay Ferrer, a 34 year-old multi-medium artist, got his start with t-shirts.

“It evolved into creating artwork and from there, the commissions started to come in.” While he primarily works with spray paint and canvas,

16

Entrepreneur

APRIL 2014

Ferrer also uses acrylic and has executed work on everything from office and home walls to building facades. Now a full-time artist –he has a Bachelor’s in Engineering and an MBA- Ferrer was formerly a consultant/corporate strategist. “I designed large scale global technology and network solutions, and assisted large corporations with strategy development.”

What’s his view on corporate involvement in the arts? “Corporations could greatly benefit from sponsoring art exhibitions and purchasing artwork because it promotes community engagement. Economies thrive because the arts are a powerful tool. I believe through artwork exhibitions and corporate in-

volvement that individuals can connect with each other and across cultures, and educate and enrich societies.” Regarding conceptual development for corporate spaces, Ferrer has “worked with clients to transform their ideas into a work of art, using my methods and mediums. I enjoy translating ideas into actual pieces of artwork.” Does he think corporations effectively utilize art? “I believe corporations could use art more to leverage community engagement and involvement. Artists should be used to collaborate with businesses to spur economic activity. Corporate and community stakeholders can develop a marketing campaign aimed at attracting a new market audience and/or

exciting an existing audience.”

The two pieces presented here were both created as “promotional efforts for X-ACTO. Typically pieces like this of this size (20” x 16”) would sell for US$300 to $400.”

TRAINING CENTER

APRIL 2014

Entrepreneur

17

INNOVATORS

>>>

I’VE GOT THE POWER ENERGY’S OPINION LEADERS HAVE SOME NEWS FOR YOU

18

Entrepreneur

APRIL 2014

> Alstom > Petrixo > Gulf Petrochemicals and Chemicals Association > Empower > Crescent Petroleum > Petrochem

> BADR JAFAR > AHMED BIN SHAFAR > GRÉGOIRE POUX-GUILLAUME > YOGESH MEHTA APRIL 2014

Entrepreneur

19

INNOVATORS

An unstable equilibrium

in the oil market

Stability may persist... but it comes with a price

By Badr Jafar

20

Entrepreneur

APRIL 2014

I

f one were to look at oil prices over just the last three years it would appear that nothing was amiss, that normality had returned after half a decade of turmoil, and that the structural shift to a new and higher price level was over. Oil prices have shown remarkable stability over the last three years with Brent averaging US$111, $112, and 109 per barrel in 2011, 2012 and 2013 respectively. Prices in 2014 so far have shown even less volatility, moving only +/- 2.5% from their average of $108 per barrel.

Yet this has also been a period of great geopolitical unrest directly affecting many oil producers in the MENA region, a period when an unconventional “shale” or “tight oil” revolution has taken off in North America, and a period when one of the world’s largest oil reserve holders, Iraq, has returned to the oil market in force after three decades of curtailment.

Khor Mor in Kurdistan, Iraq

APRIL 2014

Entrepreneur

21

INNOVATORS

Badr Jafar at the Mubarak oil platform

The last few months have also included one of the coldest winters in North American history, with oil demand at 0.7 million barrels per day higher than usual, and sanctions against the world’s largest oil producer, Russia, over its actions in the Crimea.

This begs the question: Why have prices been able to remain so stable in the face of such events, and does this mean that oil markets are now more robust in the face of supply and demand shocks?

All is not as it seems. This is the worst possible time to become complacent that the oil markets are stable, or that prices will remain predictable and high for the foreseeable future. For 22

Entrepreneur

APRIL 2014

major oil producers, such as those in the Gulf region, to plan for a future on this basis would leave us very vulnerable. To put it simply, the price stability of recent years has been, in equal parts, a fluke and the result of the actions of one party, Saudi Arabia.

Since Q4 2010 almost three million barrels per day of liquids supply has been added to the global market, essentially all from the US tight oil revolution; at the same time almost three million barrels per day of oil supply has been lost from Libya, Iran, Syria and the Sudan due to political unrest. The combined result, by chance, is that the North American tight oil revolution has not yet impacted the global market.

However U.S. tight oil production continues to grow rapidly, with approximately 0.2 million barrels per day estimated by the U.S. Energy Information Administration (EIA) to be added in the first quarter of 2014 alone. Supply interruptions from Libya and Iran cannot get much worse, and if circumstances improve they could easily rebound rapidly. Other likely sources of supply growth in the coming years

THE CURRENT OIL PRICE STABILITY MAY PERSIST, BUT THE RISK TO THE DOWNSIDE CANNOT BE DISCOUNTED.

include Brazil, Iraq and Russian tight oil; the IEA is already reporting that February 2014 saw Iraqi oil production surge to a 35 year high.

On the demand side, the OECD call on oil is expected to remain flat or declining for the foreseeable future, and while demand does continue to grow in developing markets, the quality and sustainability of that growth is increasingly open to question, particularly as the economy of China –estimated by the International Energy Agency to account for 27% of global oil demand growth in 2014– decelerates.

If chance events have neutralized supply increases over the last few years at the broad scale, then Saudi Arabia, as the world’s swing supplier, has done the fine tuning to ensure that prices remain stable by adding or subtracting supplies to the global market as transient events occur. However, Saudi Arabia’s ability to manage the market while maintaining high overall production is only effective within a relatively narrow window of supply and demand.

If supplies begin to run away from demand, which appears to be the case,

Pipeline construction in Kurdistan Iraq

Badr Jafar and Sergey Bogdanchikov, CEO of Rosneft Oil Company

THE PRICE STABILITY OF RECENT YEARS HAS BEEN, IN EQUAL PARTS, A FLUKE AND THE RESULT OF THE ACTIONS OF ONE PARTY, SAUDI ARABIA. then Saudi Arabia and other Organization of the Petroleum Exporting Countries (OPEC) members will face a much harder choice to materially cut back production, or risk a material fall in oil prices, either way sharply reducing export and fiscal revenues.

Major oil producers and exporters need to plan for these risks; the current oil price stability may persist, but the risk to the downside cannot be discounted. Aside from prudently managing budgets and building up fiscal reserves, as the Gulf countries have proven particularly effective at doing in the last decade, there needs to be more root and branch reform of energy policy at home to create robust domestic supply and consumption patterns that can weather changes in the global market.

What is needed? A greater commitment to shift domestic energy consumption from oil to gas across the whole economy, in electricity generation, industry and transport; gradual removal of the energy subsidies which result in metastasizing, inefficient, energy demand for oil, gas, power and water, and the encouragement of more private capital alongside the state in the energy economy. These measures work best in combination rather than as piecemeal measures: boosting oil and gas production, slowing domestic oil and gas demand growth, easing government budgets, creating more export revenues, and rebalancing the economy away from an overreliance on oil.

Cohesive, cooperative, and sustainable energy polices in the countries across our region are essential if we are to convert the oil market stability experienced over the last few years into truly sustainable long-term economic stability.

Badr Jafar is Managing Director of the Crescent Group, which has been operating from the UAE as a family business group for over 42 years. The Group today comprises two main companies: Crescent Petroleum, the region’s first independent and privately-owned petroleum company in the Middle East, of which Badr is President; and Crescent Enterprises, the company’s conglomerate operating across eight core sectors of the global economy, of which he is Chief Executive Officer. Badr serves as Chairman of Gas Cities LLC, a joint venture between Crescent Petroleum and Dana Gas PJSC, and serves as Chairman of Pearl Petroleum, a partnership between Crescent Petroleum, Dana Gas, OMV of Austria and MOL of Hungary. Badr is an active member of the Young Presidents’ Organization, serving as Ex-Officio Chair of the YPO Emirates Chapter.

He was honoured as a Young Global Leader by the World Economic Forum and is Vice-Chair of their Global Agenda Council on Energy Security.

APRIL 2014

Entrepreneur

23

INNOVATORS

Integrated Distribution Management System in Jahra control center Kuwait

ENERGIZING THE MIDDLE EAST Making the most of what you have

By GrĂŠgoire Poux-Guillaume

T

he Middle East energy market is a fast growing one, with increasing electricity needs to support population growth and industry development. The infrastructure needs to keep up, yet any new grid infrastructure technology also has to be designed with the future in mind- a future with a low carbon economy.

It is no small task.

24

Entrepreneur

APRIL 2014

BRINGING OUR TRAILBLAZER TECHNOLOGIES CLOSE TO THE REGION WILL HELP SPEED UP ADOPTION OF THE LATEST TECHNOLOGIES IN THIS AREA.

GCCIA national control center in Ghunan, Saudi Arabia

With a grid, you can’t just take down the existing infrastructure and start from scratch. You have to make the most of what you have. By adding digital equipment and software applications to existing infrastructures, you add intelligence to the grid and foster better energy management. Power generation and electrical utilities can now interconnect existing grids –let’s call them infrastructure assets– and use sophisticated network control technology to draw power where it is available and get it to where it is most needed, ensuring better accessibility to electricity.

Technology can play its part. Alstom’s technology, which now controls more than 60% of energy flow in the Middle East, will create the first ever energy market management system in the region, creating electricity wholesale market between various stakeholders.

Our network management solutions –essentially software– will interconnect four regional control centers, providing National Grid with a simple consolidated view to better manage and optimize the complete Saudi extra high voltage transmission network, for example.

Another trend in the industry –let’s call it “SuperGrid”– has a key part to play. High Voltage Direct Current (HVDC) can move bulk power electricity efficiently, across very long distances, enabling cross border energy trading and supply, sometimes interconnecting networks that were not initially designed to fit together. This technology has to also be flexible enough integrate

energy from renewable sources– such as solar, wind, thus paving the way for energy diversification in the future.

Alstom has significant experience in this area and within the region. We provided the transformer equipment for the Al Fadhili HVDC interconnection of the six-member states of the Gulf Cooperation Council Interconnection Authority (GCCIA). The project was symbolic and a first- interconnecting Saudi network with five other Gulf countries. This regional network –spreading across 1000 kilometres and with a combined electricity output of 1,800 MW- represents one of the first ‘Supergrids’, providing cost-effective, reliable power sharing, trading and distribution amongst member states. Alstom also installed an integrated energy management system that manages both the entire GCCIA network and each individual country network.

Early March in Dubai, we opened the first Smart Grid Centre in the Middle East. Our customers can develop and integrate tailored software, perform factory acceptance tests at the center.

Our global experts from Alstom’s state-of-the-art Smart Grid Centers in France and the U.S. will also share their expertise with our customers in the region, in real-time. Bringing our trailblazer technologies close to the region will help speed up adoption of the latest technologies in this area.

We have been in the region for over 30 years, we have around 900 employees bringing their local expertise in network management, substations automation and power electronics systems to the region every day. We are committed to bring our expertise to the region as part of this exciting energy transition.

Grégoire Poux-Guillaume, President of Alstom Grid Sector and Executive Vice President of Alstom, joined Alstom in January 2003 as Vice President Strategy. He was then head of Alstom Power’s Hydro turnkey power plant activities and then head of its Environmental Control Systems activities. In July 2011, he was appointed President of Alstom Grid and Executive Vice President of Alstom. Poux-Guillaume began his career with Total Exploration & Production as a drilling engineer, before becoming Offshore Drilling Supervisor and head of Drilling Research & Development. In 1999, he joined McKinsey & Company and subsequently worked as a private equity investor. He was a Senior Managing Director at CVC Capital Partners from 2009 until rejoining Alstom in 2011. Poux-Guillaume is a graduate of Ecole Centrale Paris and Harvard Business School.

GCCIA control center in Doha, Qatar APRIL 2014

Entrepreneur

25

INNOVATORS

WATER WOES IN THE GCC? GET EMPOWERED The future of the Middle East might depend on it

By Ahmed Bin Shafar

T

he importance of district cooling cannot be underestimated: with populations on the rise across the GCC and with billions of dollars-worth of infrastructure underway in all major cities to support world class events, such as Dubai Expo 2020 and FIFA World Cup in Doha in 2022, the need to be more sustainable in our everyday lives is paramount.

District cooling is used across all industries and all sectors, yet still many are unaware of its numerous benefits: it’s more environmentally-friendly which supports Dubai’s aim to develop a green economy to ensure sustainable

development; it results in cheaper bills for consumers, and it doesn’t use potable fresh water which is obviously a valuable resource in this desert region.

A system used to cool the interior of buildings through a network of chilled water rather than electricity, district cooling straddles three key sectors of utilities, energy, and water. It is a growing industry in the UAE and is implemented in a number of top residential areas and hotels, and we at Empower are working hard to raise awareness of it as a viable and ideal way to keep our communities cool.

Ahmad Bin Shafar, CEO of Emirates Central Cooling Systems Corporation (Empower), brings over 18 years of experience in senior management positions including eight years with Standard Chartered Bank in the areas of Corporate and Retail banking, Finance, Marketing and Customer Relations. As CEO, Ahmad provides strategic direction with the goal of making Empower a blue chip company and one of the most efficient and profitable District Cooling Services (DCS) provider in the world. Under his leadership, Empower has achieved global leadership position in the DCS industry from capacity perspective by acquiring Palm District 26

Entrepreneur

APRIL 2014

Following our recent acquisition of Palm Utilities and Palm District Cooling, Empower is now the world’s largest district cooling services provider with a total tonnage of almost one million refrigeration tonnes (RT).

This gives us an unrivalled opportunity to install district cooling systems in the vast majority of Dubai’s residential properties.

With this as a backdrop, Empower has worked to promote the use of district cooling systems in the UAE and further afield, such as in the U.S. where we have strong partnerships with the International District Energy

Cooling (PDC). Bin Shafar, a key speaker, lecturer and panelist at a number of events, including industry specific conferences and trade shows organized by American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and International District Energy Association (IDEA), is also the Chairman of board of directors of Empower Logstor Insulated Pipe Systems (ELIPS), a joint venture between Empower and Logstor. A member of Cranfield Management Association, IMD International, ASHRAE and IDEA, Bin Shafar is the first UAE national to ever be nominated to the International District Energy Association (IDEA) Board of Directors in June 2013.

Bin Shafar also holds the positions of Chairman (Bin Shafar Holding), Chairman (Al Shafar National Contracting), Board Member (Dubai Sports Council) and Chairman (Investment & Marketing Committee, Dubai Sports Council).

Association (IDEA). It is this partnership we hope to leverage further, by bringing their annual district cooling conference back to the Middle East.

The Middle East’s lack of fresh water resources has forced the region to look at innovative methods to keep its residents cool- especially in the searing heat of summer. Dubai in particular has been at the forefront of this research, and has driven the evolution of the industry in the Emirate. What we are trying to do is research and invest in new technologies

and innovations to make sure we deliver the best services to our clients with the smallest environmental footprint as possible.

The Middle East is rapidly developing into a major hub for district cooling globally. Dubai and the UAE in particular have shown strong signs of recovery in the years following the economic crisis, thanks to the constant support of the government and long-term visionary planning. The arrival on the scene of international heavyweights, such as IDEA

DISTRICT COOLING STRADDLES THREE KEY SECTORS OF UTILITIES, ENERGY AND WATER which is over 100 years old, cements the region’s position and allows us as an industry to collate information and share our experiences on a global platform.

APRIL 2014

Entrepreneur

27

INNOVATORS

CHEMICAL REACTION YOGESH MEHTA’S PETROCHEM MIDDLE EAST HAS THE SOLUTION

By Fida Chaaban

28

Entrepreneur

APRIL 2014

“

F

rustration is very good. Frustration brings dissatisfaction and in order to bring any change there has to be a level of dissatisfaction,” says Yogesh Mehta.

This is when the Managing Director of Petrochem turns the tables on me during our sit-down in his Dubai headquarters. After grilling him mercilessly about who his biggest market is (Saudi Arabia at 24% of all Petrochem output), and forcing my hand by having Mehta discuss the rising cost of desalination and how it affects his company, I suddenly find myself in the hot seat. What did I do to set him off? I ask him whether or not new business grads should become entrepreneurs or join the corporate lineup to gain much-needed experience. What follows is a torrent of (rhetorical) questions –nay an interrogation- detailing exactly what and how one would execute said line of business. This is when I finally see the corporate shark in Mehta come out.

Leaning forward across his desk, Mehta fixes me with his gaze and begins to assail me with questions faster than I can answer them.

“Why do that? If you do business, you need a skillset. If your father or mother is a rich person- that’s your skillset? If you have a great talent and you’re trying to hone it, then that’s your skillset? You

can’t just say I’m 29 years-old and I have to open my own business.

That doesn’t work! What business? What’s your focus? What do you know? How will you go about it? What are the dos and don’ts?

What’s your demand-supply situation? What’s your landscape?

How are you going to map it? What are you going to do? What’s the

footprint? These are all logical questions! I’m so-and-so and I’ve got so-and-so experience, only then you say you’ll start to do something on your own. You have to plan everything- market mapping, personal mapping. Do you have the talent?

Do you have the skills? Your time only comes when you’re ready for it. You’ve got to have structure!” >>>

APRIL 2014

Entrepreneur

29

INNOVATORS

“WE HAVE RESOURCES! IN A BIG COUNTRY LIKE THE UAE –AND I MEAN BIG AS IN PROSPEROUS- YOU CAN’T DRINK THE WATER BECAUSE IT’S SALT WATER. THE MOMENT YOU DESALINATE IT’S FANTASTIC.”

Logic and structure indeed. After spending some time with Yogesh (“Call me Yogi, it’s the name I like.”), I can see how this man has made his mark in the finicky old-boy field of petrochemicals. While Yogi didn’t exactly fit into the theme of energy, his work is directly linked thus making him a valuable commentator. He supplies chemicals needed to energyrelated businesses (four Petrochem products are specifically for oil companies), and his production process needs water, yes, and that means desalination. “We use desalination plants. Money is something that you need to get the water. Suffice to say

“THE MARKET IS STILL VERY YOUNG. WE CAN PROLIFERATE MORE, SELL MORE. WE ARE MARKET LEADERS AND EVERYBODY KNOWS WHAT WE DO. THERE IS LOTS OF COMPETITION IN OUR BUSINESS- SOME WOULD EVEN WISH THAT WE WOULD FALTER.” 30

Entrepreneur

APRIL 2014

there is enough water in the world, but to deliver it to the human in the deep, dark recesses of the world, that is the challenge. That is logistics, that is money, that is development,” says Yogi emphatically. “We have resources! In a big country like the UAE –and I mean big as in prosperous- you can’t drink the water because it’s salt water. The moment you desalinate it’s fantastic.” He proceeds here to explain the process, and it’s no layperson’s rundown since Mehta has Bachelor of Science in Chemistry from the National College Bandra in Mumbai later following that up with an Executive MBA from Harvard Business School. Why did he move to nearly Dubai 25 years ago? “It wasn’t by any intent, it was just what came my way at that time. I was pretty down and out, and my friend was visiting from Dubai. He said, ‘You need to change your whole approach including your country.’ I found that it was a developing city and country- the government at that time was very proactive and very supportive. I thought it was quite a quantum leap from Bombay; this was much more than what I came from. I was going absolutely nowhere in my career, and I decided within two weeks that I would stay here and

I did.” In his youth Mehta experienced both losses and gains, and he doesn’t sound the least bit regretful:“I made some money, I lost some money. I did this through reckless ventures. They were amateur expenditures and I was spending like an amateur. Whatever money I made, I lost very promptly.

The foolishness of youth keeps you going for a while until you hit a wall.”

Five years after his impromptu move to the UAE, Yogi and partner David Lubbock formed Petrochem in 1995, and can now boast that the Gulf state is their second biggest market after GCC powerhouse Saudi Arabia, followed closely by the Managing Director’s native India.

This successful entrepreneur has had more than his share of press coverage, possibly because he gives such a good interview. He’s an expert at sound bites, and while some of the things he says come off as ‘trep talk, I find a few of Mehta’s platitudes hit home: “The risk and the reward must be balanced. A little bit of risk is always important -calculated risk if you like- sometimes even a do-or-die risk.

A combination of all that, but you must have knowledge and a skillset and a lot of patience.” Or another one: “A certain amount of the unknown and travelling into the unknown is very important. If you go into the chosen path, you’ll just be one of the followers, because the leader has set the path. It’s okay to be follower -it’s not a bad thing- but if you want to do life-changing things, if you want to do things which are a paradigm-shift, then you’ve got to be a leader in that.

Think out of the box.” Mehta’s Petrochem already works with a “veritable who’s who”- the big players known to only those inside the industry, and the household names known to

pretty much everybody, like Shell, LyondellBasell, and Dow. Insofar as business development goes, Mehta says that they “can’t do enough of it.

The market is still very young. We can proliferate more, sell more. We are market leaders and everybody knows what we do. There is lots of competition in our business- some would even wish that we would falter.” His top sellers are doing big numbers in three products primarily: “Ethyl Acetate then Toluene followed by Xylene,” with the foremost being used widely due to low cost overheads and a bevy of applications. “When you drill you upset the ecological balance. Be it Alberta, Alaska, Sharjah… Drilling is literally earth-shattering, but the world will never run out of oil.” Yogesh talks of the oil reserves in Alaska, and says that he is sure that the U.S. will wait until everyone else has extracted as much as they can until they begin to siphon from their own stores. We

even manage to discuss the hellish Gulf of Mexico British Petroleum-operated spill of April 2010, the “Deepwater Horizon” disaster. While he admits to the damage to the environment, Mehta is still optimistic and chalks a great deal of it up to politics.

As for CSR, Mehta is taking a direct approach rather than the corporate-favored namingright approach. He doesn’t build parks and he doesn’t donate to library wings, instead he turns the CSR into a literal educational opportunity for budding business wannabes. “Petrochem has scholarship programs. I’m educating two students every year from Harvard Business School. I actually fund them.

There’s lots of things that we do in our humble way- charity towards hospitals is one. But internally, we do responsible care in our companywe’ve got very strong ethics. Our

people are treated well; quality of life is very important to us. We have a breakfast program in the morning,” he adds. Mehta agrees that happy people certainly do produce more for their companies, and that this “responsible care” acts as loyalty-building schema as well. In addition to the basics, Mehta’s staff retention strategies include training programs for skillset upgrade and sending worthy candidates for higher education at his alma mater. >>>

APRIL 2014

Entrepreneur

31

INNOVATORS

“WE TURN OVER US$1.1 BILLION; IT’S BIG TICKET. THAT’S A LOT OF TRUST AND FAITH YOU HAVE TO HAVE WITH THE PEOPLE AROUND YOU.”

“We also have a huge cultural initiative in the company. We sponsor dance, drama, theatre and music. My biggest hobby is music; I’m deeply entrenched in music. I always fear that are we [becoming] robotic? Have we forgotten to be human?” The topic leads us to some known CSR superstars, two of which end up being Yogi’s choice of business magnates that have made an impression on him personally. “I used to think a lot of Steve Jobs in my young times; Bill Gates and Richard Branson- I really like Branson.” This interview took place one day before du’s CEO Forum featuring Sir Richard, but Mehta was scheduled to fly to the U.S.- specifically Texas. He’d just arrived in Dubai from a double-daily trip to India, but that was personal and not work-related: “I went to have lunch with my sister, it was very nice. We had a fine lunch, then I did the interview and came back.” The Managing Director has put a lot of work into his relationships, and he confidently says that “it’s better to work with friends, and quality of life is more important than anything you’ve ever worked for and that includes money.”

“YOU SPEND A LOT OF ENERGY WHERE THE MEANS BECOMES THE END- THAT HAS STOPPED FOR THE LAST SEVEN OR 10 YEARS NOW.” 32

Entrepreneur

APRIL 2014

His partner in Petrochem, the aforementioned Lubbock, is an old friend of Yogi’s that he met after relocating to Dubai in 1990. Lubbock was a supplier to a small business venture of Mehta’s early on, and the two later partnered up. “We turn over US$1.1 billion; it’s big ticket.

That’s a lot of trust and faith you have to have with the people around you. I tend to work with friends, people who become family over the course of life. David is such,” he says gesturing to a framed image of the two partners together taken some years ago, Together with his wife of 30 years, his son Rohan takes a big chunk of Mehta’s focus. “I want to be a good father to my son,” he says fondly. Rohan, Yogi’s only child, just completed two years with a Texan refinery and will shortly be joining his father at Petrochem. “My own father, he passed away. He was a producer of chemicals- as an entrepreneur his approach was very dif-

ferent. He never made much moneyhe was a great man, but an academic and quite technical. He wanted a perfect product, and he didn’t care whether or not he made money out of it. When you do business, the end goal is to make money. My goal today is much different: It’s not only about making money, it’s also about giving back to society. Being younger, you’re less into the understanding of what is going on in the world. You spend a lot of energy where the means becomes the end- that has stopped for the last seven or 10 years now.”

Things have changed for Mehta in the two decades of Petrochem, both on personal and professional levels.

The entrepreneur seems unfazed by it all, and that includes that challenges he’ll have to meet in terms of resource shortages and the subsequent logistical mazes. In his own words? “It can all be managed. It’s not easy, but it can. We’ll all be fine, you will see.”

For some reason, I believe him.

APRIL 2014

Entrepreneur

33

innovators

POWER PLAYERS URBAN CONSUMPTION GOOD & BAD

F

ive hundred and twenty-four quadrillion British thermal units (Btu). That’s how much energy the world consumed in 2010, according to the Energy Information Administration’s 2013 International Energy Outlook. You might not speak “energy”, but you know that’s a lot. According to

Hoover Dam and the Colorado River Bridge

By Youmna Chagoury

the same study, we can expect an 820 quadrillion Btu consumption in 2040, a 30-year increase of 56%. Here’s a list of three cities that (unfortunately) make all that possible.

TOXIC BEIJING According to CNN, “China is the world’s largest consumer of coal by volume and will continue to be for years, relying on the fossil fuel for 70-80% of its energy needs.” Coal is used for both electricity generation and industrial use and Beijing alone still has four coal-fired power plants- they’re working on replacing them with gas-fired stations, but they’ve been saying that since 2009 so we’re not really sure. Factories in neighborhood provinces and an increasing use of cars in the city have ranked Beijing as the most polluted city in the world, recently dethroned by the Indian capital New Delhi.

VEXING VEGAS In terms of electricity consumption, the United States ranks first, according to the U.S. Energy Information Administration, an American statistics and analytics agency. If household energy use is increasing, industrial use is what makes the country such an energy-wasteful

one. However, the greatest example of energy waste, literally, is Las Vegas, Nevada.

If the state’s energy consumption per capita is below the national average, the total amount of energy used “on a summer day” in Las Vegas in 2007 was 5,600 megawatts. “By 2015 that’s expected to hit 8,000.” (Forbes) In comparison, New York City’s surface area is more than three times bigger than Vegas’ yet uses 11,000 megawatts per day.

Blame it on the transportation energy used to bring all those tourists in and the 24/7 lights and music of the Strip.

BOSTONIAN BONUS Boston is one of the most energy efficient cities in the world, and an example to follow. The American Council for an Energy-Efficient Economy gave Boston the highest score of “76.75 out of a possible 100 points on a scorecard […] on which cities received points for their energysaving initiatives.” (National Geographic) In 2009, Boston’s Mayor Thomas Menino created the Renew Boston initiative, which set a goal of (among other green things), reducing greenhouse gases by 70% by 2050. The city is also making its residents several offers to upgrade their home insulation and reduce their household energy waste.

Fujairah gets fueled-up Petrixo oil & gas invests in sustainable energy Headquartered in Dubai, Petrixo has committed to launch a new bio-fuel refinery in Fujairah. The oil and gas concern, affiliated with over 20 companies, has set its sights on a target of one million metric tons annually of bio-feul products, including green and bio deisel, bio jet, bio naptha, and bio LPG. Currently operating on four continents, Petrixo’s investment for the Fujairah refinery is set to exceed “US$800 million”, and will occupy a whopping 460,000 square meters in the Fujairah free zone and the Port of Fujerirah. A cooperative initiative, Petrixo has brought in several international companies and financial

34

Entrepreneur

APRIL 2014

institutions to execute the refinery plans.

Currently present in 25 countries globally, Petrixo was awarded the “Best Fully Integrated Oil & Gas Company- Middle East” in 2011 by World Finance. As part of the current move to foster cleaner -and longer-term energy solutions- the UAE looks fondly on projects that have a renewable and sustainable component. “Come to Energy” indeed.

Raytheon’s got game in the GCC

MARKET EXPANSION FOR AIR AND MISSILE DEFENSE SYSTEM

K

uwait has continued its collaboration with Raytheon Company with the latter receiving a US$655 million contract to provide a new Patriot Air and Missile Defense System for the little Gulf state. The contract was awarded by the U.S. Army and Missile Command, substantially upgrading Kuwait’s current arsenal. The new Patriot fire units have better radar

efficiency, more computing power, and an improved man-machine interface.

Kuwait is one of 12 countries that use the Massachusetts-based company’s Patriot systems- Saudi Arabia and the UAE are also users of Raytheon’s Patriot Air and Missile Defense System.

Raytheon has also recently clinched a $1.2 billion deal with Oman -supplying them with the system- and is aiming to continue its expansion

with recent talks in Qatar. Raytheon boasts a strong relationship with the Middle East on its website, and a constantly expanding foreign business portfolio; 27% of Raytheon’s total revenue comes from abroad.

Beginning nearly five years ago with Saudi Arabia, the 92 year-old company eventually started working with Jordan and Egypt throughout the 70’s, 80’s and 90’s.

The combat proven Patriot is the world’s most advanced air and missile defense system.

Mohammed Al Mady, Chairman of the Gulf Petrochemicals & Chemicals Association, and CEO of SABIC, opens the inaugural GPCA Research & Innovation Summit in Dubai, UAE

R&D ON THE RISE IN UAE PETROCHEM GPCA GETS SERIOUS ABOUT MAINTAINING MARKET EDGE “Innovation is no longer a luxury but an absolute necessity for the GCC petrochemicals industry.” This was said 16 months ago by Dr. Abdulwahab Al Sadoun, Secretary General of Gulf Petrochemicals and Chemicals Association (GPCA), after the association urged GCC petrochemical companies to increase investment in research and development (R&D). In late 2013, the GPCA believed that the GCC’s petrochemical companies were at risk of no longer maintaining their competitive edge in the global market. While the GCC’s second largest manufacturing sector was at risk, the

GPCA has announced an increase in R&D investments from GCC petrochemical companies, hoping that they will play an active role in improving performance since increasing R&D investments has shown to yield better results in previous years.

R&D investments in 2012 went up by 30% with an estimated US$380 million spent in comparison to $266 million in 2011. In addition to all this, petrochem output from the Gulf region in 2012 was at $97.3 billion- $3.2 billion growth in a single year. The GPCA also held a summit in mid-March to emphasize the need for continued research. Things are looking up!

APRIL 2014

Entrepreneur

35

25% MARKET GROWTH

EXHIBITION

15,000+ M2

L AU N C H E S

LATEST PROJECT

PROPERTIES SHOWCASED

1 0,0 0 0 ’ S

P RIM

ONS I T A C O EL

22 ~ 24 April 2014

Abu Dhabi National Exhibition Centre, UAE From 10am-7pm daily

Headline Sponsor

36

Entrepreneur

Platinum Sponsor

APRIL 2014

Official Broker

Official Mortgage Provider

Supporter

Regional Broadcasting Partner

Official English Newspaper

Real Estate Returns.

Visit Cityscape Abu Dhabi.

Cityscape Abu Dhabi is widely regarded as the key barometer for the region’s property sector and acts as a platform for developers, investors and other real estate professionals to meet and do business. With hundreds of developments from Abu Dhabi and overseas being showcased, Cityscape Abu Dhabi 2014 is the prime location to discover the latest investment opportunities within the residential, retail, hospitality and commercial sectors.

Register now for FREE entry! www.cityscapeabudhabi.com

Official Arabic Newspaper

Follow Us:

/Cityscapeabudhabi

+971 4 336 5161

@cityscapeMENA

cityscapeabudhabi@informa.com

Cityscape Networking Forum

Official Business Publication

Official Online Partner

Supporter Of

Co-located Event

APRIL 2014

Organised By

Entrepreneur

37

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

BANKING GETS DIGI Emirates NBD wins social media across the board

SAIF AL MANSOORI TALKS SUCCESS, STRATEGY, AND WHAT YOUR COMPANY IS MISSING OUT ON

A

nd the winner is… Emirates NBD. In the social media sphere, the financial institution was recently recognized for their exceptional performance in real-time engagement and customer service, and yes, this is all via their numerous social media platforms. Their accounts -highly active across all mediums- were recently lauded by U.S.-based medium The Financial Brand as number 25 on the “Power 100 Social Media Rankings”. Each quarter The Financial Brand reviews KPIs of financial institutions worldwide in English-oriented nations. In addition to this, the bank was also awarded Best Social Media Strategy in the “Financial Services” category at the 2013 Marketing Show Awards.

38

Entrepreneur

APRIL 2014

Emirates NBD -who has operations in UAE, Egypt, Saudi Arabia, Qatar, Singapore, and the United Kingdomwas also ranked highly for a number of separate social media categories by The Financial Brand, including YouTube views and subscribers, Facebook interactivity, and Twitter conversation. Saif Al Mansoori, Deputy Head for Group Marketing & Branding at Emirates NBD, gave us the rundown on their expansive social media strategy, and why it’s paying off. Get connected, it’s a matter of opportunity cost- if you aren’t maximizing your social media potential, you’re giving your financial clients a reason to go elsewhere. “Social media has had a

“SHAKE N’ SAVE IS ONE OF THE MANY INITIATIVES IN LINE WITH EMIRATES NBD’S STRATEGY TO ENCOURAGE CUSTOMER MIGRATION TO THE ALTERNATIVE BANKING SPACE.”

considerable impact on our business, because through this channel we’ve taken our product and service offering right into the homes and hearts of the communities we serve. Our dedicated Twitter account for deals and promotions and the Facebook posts have also contributed significantly in raising awareness of our product and service offering,” says Al Masoori. “The greatest impact has been on our customer relations management, because the direct interaction with our customer service representatives via Twitter and the speedy resolution to issues have ensured customers that Emirates NBD has their best interests in mind.”

The bank is currently going hard on every medium, including the littleexploited app avenue. “Shake n’ Save is one of the many initiatives in line with Emirates NBD’s strategy to encourage customer migration to the alternative banking space. It’s been launched with the specific objective to provide a fun and convenient way for people to save, and replace the idea of impulse spending with impulse saving, by making it easier to access online banking platforms through a smartphone.” The multi-

APRIL 2014

Entrepreneur

39

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

their Shake n’ Save account in the first two months since going live. [We] offer services to a million plus customers, who hail from various demographic and income groups, and have diverse tastes.

It’s important for us to develop apps for multi-platform users to be able to meet the varied needs of our customers.”

Once the app is downloaded on a device, the interface is easy to navigate- all the user has to do is hit the Shake n’ Save descriptor.

Al Mansoori, who joined Emirates NBD in 2008 after leaving his position as Sales and Marketing Director for Emaar Group, personally uses several platforms, but says that he’s most active on Instagram- a rate reflected in GCC social media surveys. Where does he see the trend going in terms of corporate adoption? “Going forward, over the next two Saif Al Mansoori, Deputy Head, years I strongly believe that we Group Marketing will see considerable investand Branding, ment in social media by more Emirates NBD and more organizations, as they seek to leverage these media for better communication with

operating system app is available for Android, iOS, BlackBerry 10, and even Windows phone- basically ensuring that the bank addresses every smartphone user in contrast to most app launches who only opt for iOS and Android. Taking GCC statistics into consideration, the move is very savvy as overlooking some OS options is again an opportunity cost issue. Who are they targeting with the apps? “This account is aimed at people who are new to the concept of saving. This app moves away from the traditional saving methods, where people carefully plan how much they will save each month and seek the best interest rates accordingly. The app has received a tremendous response with more than 2,500 customers opening

40

Entrepreneur

APRIL 2014

“IT’S IMPORTANT FOR US TO DEVELOP APPS FOR MULTIPLATFORM USERS TO BE ABLE TO MEET THE VARIED NEEDS OF OUR CUSTOMERS.” stakeholders, particularly customers.

Smart organizations in particular will certainly move towards greater use of these media for more cost-effective and time-efficient marketing techniques that enable companies to reach out directly to target customer groups. These channels are also becoming increasingly significant because they also allow for effective and measurable ROI.” Al Mansoori, certified both as an e-commerce consultant and a credit analyst, has a Bachelor of Science degree in Business Administration from National American University and also completed Swiss IMD’s leadership program.

FACT FILE EXECUTION “Emirates NBD launched its social media program in August 2012, focusing on a Facebook page and appropriate use of a Twitter feed. Facebook was ranked as the most engaging of the bank’s social media platforms, with the bank becoming the first in the UAE to have built a following of more than 122,000 fans by August 2013.”

When discussing Gulf-youth usage of social media, he points out that “young people in the UAE are considerably tech savvy and are interested to explore online banking platforms to complete their transactions. At the same time, given the large disposable incomes, the luxurious lifestyles and access to a wide range of top global brands, there is a strong

“SMART ORGANIZATIONS IN PARTICULAR WILL CERTAINLY MOVE TOWARDS GREATER USE OF THESE MEDIA FOR MORE COST-EFFECTIVE AND TIME-EFFICIENT MARKETING TECHNIQUES”

PLATFORMS “Each platform was launched with different objectives. We started with a Facebook page, an Emirates NBD corporate account on Twitter and an Instagram account. We created a strategy aimed at highlighting relevant news, providing updates on products, services, events and discounts, to enable customers to take advantage in real time.

Through customer feedback, we became aware that our customers are very much interested in knowing more about the variety of offers they can get using their Emirates NBD cards. In response to this requirement, we launched a Twitter account just for deals!

The most recent social media channel has been our official LinkedIn page, which went live just a few weeks back. Through this, we reach out effectively to our corporate customers and stakeholders. It will help us communicate with entrepreneurs and business banking customers.”

AGENCY “The success of any strategy is always dependent on effective collaboration among various partners, and an essential aspect of our success in implementing social media channels is due to our agency, Starcom MediaVest Group Dubai, who has been our partner since the launch of all our social media accounts.”

SLA “Twitter has the advantage of being fast and empowers direct communication in a crisp manner. Twitter enables Emirates NBD to respond quickly to customers and assist them as fast as possible. Through our Twitter account, we’ve managed to address customer requests and connect directly with them in response to their observations, suggestions. With more than 70% of customer issues being resolved within five to seven hours, customers are increasingly turning to our social platforms to seek quick resolution of their problems.”

PAID PROMO “Emirates NBD does promote tweets, mainly to push certain competitions for our followers to participate in. In this way we assist in creating more exposure and awareness about the campaigns.”

DIVISION OF LABOR “Aimed at instantly highlighting relevant news, the official Twitter account @EmiratesNBD keeps followers updated with bilingual tweets about all matters related to the bank. The bank has @ENBDdeals to showcase special offers and discounts, to enable customers to take advantage in real-time of the best deals, including f&b and travel deals being offered by the bank in coordination with its partners. Twitter followers have grown over a 100 times since the launch, to reach more than 27,000 followers on the main handle and [almost] 11,000 on @ENBDdeals. The Instagram platform is used to host and promote photography competitions, including one the bank launched to depict the festive spirit in the UAE on the occasion of its 41st National Day. The first of its kind competition received an overwhelming response, with more than 1,000 user-generated photograph entries.”

tendency for impulse spending in the country.” In other words, if you haven’t already jumped on the digi bandwagon, you’re missing a whole lot of communication potential that translates into cold, hard cash. Learning is earning, and Emirates NBD has mastered that curve quicker than the rest.

APRIL 2014

Entrepreneur

41

CULTURE

business unusual | LIFE | TRAVEL | DESIGN

TRAVELLING ‘TREPS PART DEUX

LAYOVERS, RED-EYES, DOUBLE DAILIES? YOU LOOK EXHAUSTED!

By Leslie Iddison

Frequent air travel wreaks havoc on your skin; try some of these tips to ensure that you arrive at your destination looking fresh-faced.

Get ready to run from the baggage claim straight to the boardroom.

1. BANISH BAGS We’re not talking luggage here… Those sleepy pockets that seemingly appear between gates can stay behind long after your trip, especially if you’re jumping time-zones.

Use an eye cream that is specially formulated to eliminate excess fluids and brighten. Be sure to press these products both under the eyes and on the upper contour as well, for a 360 effect. For ladies, Clarins Eye Revive Beauty Flash. This SOS eye treatment brightens, tightens, and instantly corrects puffiness and dark circles with a botanical formula that uses rose petal extract to soothe tired eyes. For men, Clarins AntiFatigue Eye Serum. The gel formula cools, soothes, and refreshes while Caffeine and Ginko Biloba decongest and depuff. Apply right before landing.

place that draws considerable attention and is impossible to conceal). Keep a handy spot corrector in your carry-on to dab on throughout your flight to reduce inflammation and keep blemishes at bay. For both ladies and men, Clarins Blemish Control Stick. This handy and discreet pen contains a blemish control fluid that can be applied to any imperfection multiple times. The anti-bacterial stainless-steel roller ball deposits just the right amount of the treatment to the localized area. Witch Hazel controls oils and tightens the pores while Allantoin acts as a potent anti-inflammatory to reduce the size and redness of any spot. Bonus, you actually get two pens in each box; so keep one in your toiletry bag and one in your carry-on.

2. BLAST BLEMISHES It never fails; you board the aircraft with a flawless complexion yet somehow you arrive with a blazing blemish (usually in a

3. POST FLIGHT PERK Pack a moisture mask to intensely rehydrate after your flight like Clarins HydraQuench Cream Mask. Apply in a

thick, even layer and let your skin take in all the nourishing benefits for at least 10 minutes. Added bonus, this product can be used around the eye contour as an eye mask.

Try Make Up For Ever’s HD Elixir- it gives instant radiance and hydration for the long haul in a fresh gel texture. The quick-absorbing product reduces signs of fatigue, and alleviates dehydration. On a cleansed face, apply a thin, even layer beginning at the middle of your face and move outward. This product is suitable for both men and women who are constantly on the go. When applied around the eye contour, HD Elixir helps with fine lines and unwanted puffiness.

Spend & splurge KSA AND THE UAE GET GUSSIED UP MORE THAN EVERYONE ELSE IN THE GCC You know your region’s economy is starting to get better when it’s recognized as a key market for premium cosmetics. Yes, premium cosmetics as in beauty products. A recent report by London-based market firm Euromonitor International has shown that per capita expenditure on premium cosmetics in the GCC is increasing at a hyperactively-rapid rate.

Consumers in Saudi Arabia and the UAE are especially expected to increase spending- KSA’s expected spend for 2017 is US$68.20 per capita on premium cosmetics, a jump from the 2012 figure of $49.20 in 2012. In the UAE, consumers 42

Entrepreneur

APRIL 2014

are expected cash in on beauty products at $48.70 per capita compared to $40.70 in 2012. Believe it or not, these trends in the GCC are similar to other markets that are known to have high consumer expenditure on premium cosmetics, including France, the United Kingdom, and the United States. That’s a lot of makeup.

Beautyworld Middle East, with exhibitors from leading beauty and wellness industry brands, takes place at the Dubai International Convention and Exhibition Center from May 27-29, 2014. www.beautyworldme.com

business unusual | LIFE | TRAVEL | DESIGN

CULTURE

TOUR GUIDE

Saudi Arabia sets sights on tourism While the Kingdom of Saudi Arabia is not the first country in the GCC that comes to mind when you think tourism, it looks like that will be changing very soon. Saudi Arabia’s tourism industry has been growing, and is projected to reach new heights in the next decade. Research consultancy group Aranca has released reports on tourism and hospitality in the Middle East and North Africa, and KSA’s data looks very promising. With an expected increase of tourists to 21.3 million from 2013 to 2023, Saudi Arabia is set generate an estimated total revenue of SR60.9 billion (US$12.64 billion).

As a result of the continued growth in their tourism sector, Saudi Arabia plans to invest over $30 billion in its airports by 2020. $10 billion has been allocated for private investment, and $12.5 has been allotted for

Saudi Arabia’s four key international airports: Riyadh, Dammam, Jeddah, and Madinah. It’s worth mentioning that Saudia, Saudi Arabia’s national carrier, has resumed direct flights to Manchester after a seven-year hiatus.

A variety of regional and international airlines fly directly to Dammam’s King Fahad International Airport, including Emirates Airways, Air India, KLM, Lufthansa, Turkish Airlines, and Middle East Airlines.

PACK IT UP, PACK IT IN KSA’s tourism draw The Riyadh Travel Fair, taking place from April 15–18, is in its sixth year. Staged at the Four Seasons Riyadh, between 15,000 to 20,000 guests are expected to visit the annual event organized by ASAS Exhibitions including travel and tourism professionals. In 2013, the RTF attracted over 13,000 guests- a record number.

Hop on board! www.riyadhtravel.net

APRIL 2014

Entrepreneur

43

CULTURE

business unusual | LIFE | TRAVEL | DESIGN

Building Frenzy Legoland Dubai

DARN IT, DOC BROWN! Viral back to the future-eque hoverboard ad a hoax… or not?

So close yet so far: The cult fanbase of 80’s sci-fi trilogy Back to the Future are probably wallowing in disappointment, having fantasized about owning a hoverboard ever since watching Marty McFly zoom around on one in the second film… but what’s this about a viral video? A vid featuring Christopher Lloyd -better known as Doctor Emmet Brown in the Back to the Future movies- appeared seemingly out of nowhere, promoting hoverboards by a brand called HUVr. Several celebs made appearances in

the ad, including skateboarding legend Tony Hawk, and HUVr’s mediums got a crazy amount of traffic. Much to the dismay of viewers, Lloyd released another video the following day admitting that the HUVr hoverboard ad was a hoax. But hold up…an intense advertising campaign starring Christopher Lloyd, Tony Hawk, and Los Angeles rapper Schoolboy Q with nothing to show for it? There’s gotta be more to this… Keep your eyes on the prize, no one spends that kind of ad money for no reason.

2016 is the year to look forward to, mostly because it marks Legoland’s highly-anticipated opening in Dubai (after a painfully long wait). The project was officially announced back in 2008 by Merlin Entertainments Group. They announced Legoland’s opening in Dubailand by late 2011, with a budget of AED 912 million, but put the project on hold, perhaps as a result of the economic crisis. Despite having recently announced the involvement of third party companies, no new financial details have been revealed yet. The England-based group claimed that a contract in 2012 was signed allowing several third-party companies, including Hospitality LLC and Meraas Malls, to fund the developing and construction phases with Merlin managing UAE’s Legoland for a 25-year period. Merlin Entertainment manages and operates almost 100 attractions in over 20 countries, most notably the London Eye, Madame Tussauds, and Legoland Parks.

BIG SCREEN BEEF-UP

VOX Cinemas announce regional expansion VOX Cinemas are planning to continue their expansion across the Middle East, newly announcing an AED 750 million investment through Majid Al Futtaim. VOX are hoping to continue growing by opening cinemas in five new locations, a total of 12 new cinemas throughout the region in Oman, Qatar, Bahrain, Egypt, and UAE. The big screen mavericks plan on continuing their expansion projects as of June 2014. If all goes according to the conglomerate’s strategy, VOX will run over 250 screens in MENA, which is a massive 400% increase since Majid Al Futtaim took control of the company less than four years ago. VOX is also planning on renovating all of their existing cinemas, including their best known outlet at Mall of the Emirates. Roll ‘em!

44

Entrepreneur

APRIL 2014

CULTURE

business unusual | LIFE | TRAVEL | DESIGN

SWEATER WEATHER

Crowdsourced clothing… for penguins Yes, you heard that right. In terms of crowdsourcing, this is one of the most interesting -not to mention sadcampaigns that we’ve seen in a while.

The Penguin Foundation isn’t asking for money, they’re asking for sweaters for the penguins affected by ecological disasters, namely the nightmarish oil spill. What’s the correlation? Penguins caught in oil spills try to use their beaks to rid themselves of the oil. The sweaters help them to stay warm, and they also prevent the penguins from picking away at themselves.

In addition to collecting the knitted outerwear for their rescued penguins, the Penguin Foundation also collect and distribute the pint-sized sweaters to other wildlife preservation outfits as needed, and use them for both

educational program purposes and as a fundraising technique.

Their new wildlife center is able to care for up to 1500 penguins in the event of an oil spill: According to their website, oiled-up penguins “often die from exposure and starvation. Oil separates and mats feathers, allowing water to get in which makes a penguin very cold, heavy and less able to successfully hunt for food.” They’re not even talking about large amounts of the toxic substance, all it takes is a “patch of oil the size of a thumbnail.” If you can’t knit, you can help by donating on an annual basis or a one-time basis for penguinadoption. Those of you looking for a gift for the person who has everything can opt for gifting a penguin adoption.

After all, baby it’s cold outside.

Wanna take it down a notch?

Fight stress levels by modifying your diet

By Shoug Al Nafisi

T

he beginning of the end of your day should include a destressing ritual. Having deadlines, a full schedule, and generally fighting the clock each day is likely to keep you wide awake at night.

This, however, is one fight you can definitely take on with a proper diet, and that doesn’t mean you have to go for foods and beverages that are out of the ordinary- these staples are easy and accessible, even for ‘treps constantly on the move.

BOUNCE BACK Oily fish, nuts, and the recently trending chia seeds all contain omega-3 fatty acids which have antiinflammatory as well as anti-stress properties. Having varied omega-3 sources of food, regularly and in appropriate amounts, is very helpful in maintaining physical health, as well as handling stress.

THAT’S RICH! Milk has the capacity to increase serotonin in the brain, subsequently giving you the feeling of well-beingperfect for any time of the day. Milk’s Magnesium, Calcium and Potassium keep blood pressure down by dilating blood vessels, while also lowering cortisol, the stress hormone, further contributing to that much-needed relief. Serotonin regulates a few important things, not the least of which are mood, appetite, and sleep, so stock up. Other serotonin-boosting foods?

Dark chocolate that measures at least 70% cocoa, seafood, and bananas.

WARM UP Warm drinks are associated with comfort- you can trigger that response every time you have something warm. That said, green tea contains antioxidants and a specific amino acid, theanine, responsible for encouraging

a state of relaxation. A promoter of alpha-wave production and dopamine increase, you’ll want to have a warm cup of good-grade green tea to help you unwind.

APRIL 2014

Entrepreneur

45

CULTURE

business unusual | LIFE | TRAVEL | DESIGN

TIME MANAGEMENT TOMES USEFUL, THE USELESS, FOR ‘TREPS THE AND THE MUST-READS

By Amal Chaaban

T

he time management fad is in full swing in bookstores globally- and since time is the most valuable resource out there in terms of work, these books are flying off the shelves. Every author thinks he can do it better than you can, and while some of them really are masters of the clock, a lot of them are just great at PR. Before you hit the business bestseller aisle, read these reviews to see which of these known books are actually worth your while. You’re welcome!

What the Most Successful People Do Before Breakfast Laura Vanderkam Board member, author, wife, and mother; Laura Vanderkam wears all these hats and still manages to keep it all together.

In her book, Vanderkam extols the virtues of using the time you have in the morning to do the things you never seem to have time in your full day to do. If you don’t get up early enough to do anything but rush around, she suggests getting up earlier.

Getting Things Done: The Art of Stress-Free Productivity David Allen David Allen is best known as the creator of a time management method called “Getting Things Done”, and as a productivity consultant who attends businesses and advises them where things are going wrong negatively im-

46

Entrepreneur

APRIL 2014

pacting productivity. Aside from the famous Covey bestseller, this is the most solid time management book out there. Concrete ideas mixed with user-friendly methodology make this the book for the person who wants real answers on how to get their workflow under control and their inbox back from the brink.

My vote for this book? Read it, apply it and gift it to your staff.

While she provides several examples of CEOs and others who have used this method of getting up earlier and “taking time” in the morning, she simply doesn’t account for those who are not morning people or who don’t function well in the morning, not to mention those who already get precious little shut-eye. My vote for this book?

Hit the snooze button.

Eat That Frog!

Brian Tracy Motivational speaker, author and life coach Brian Tracy has written a small, quick and easy read on time management that everyone can begin applying immediately. “Eat That Frog” is a phrase you will see throughout the entire book along with a couple of other folksy sayings. While the tone of the book is meant to be fun and functional at the same time, it hits the latter note more

than the former. The book has the usual platitudes about time management found everywhere, but what makes it stand out is the method of application Tracy suggests that you use. This author is also a very big believer in the 80/20 rule and encourages the reader to follow it to a T. My vote for this book? Only if your inbox is slightly unwieldy.

Make Today Count John C. Maxwell John C. Maxwell is a pastor, author, and public speaker who has authored several books all dealing with various aspects of leadership. It may be for that reason that this book can be found in the Business Section of your local bookstore, but it is far more a lifestyle guide than a purely business application book. Mr. Maxwell does give some solid advice about faith and family management, but it is difficult to see how some of the advice he imparts can be applied to the day to day struggles of keeping on top of a wild workload. My vote for this book? Use it to manage your life, not your career.

THE 7 HABITS OF HIGHLY EFFECTIVE PEOPLE STEPHEN R. COVEY Prior to his death in 2012, Dr. Stephen R. Covey was widely considered the father of the Time Management movement (his book had sold over 20,000,000 copies at the time of his death) and it has been said that all other time management books are merely shadows of his. He was one of the first to use terms such as “proactive” and put them into play in his business dealings. Named one of Time’s 25 most influential people in 1996, he was awarded several other accolades over his lifetime. Though he could have easily rested on his laurels with all the success he reaped early on, Dr. Covey remained active until complications from a biking accident ended his life.

APRIL 2014

Entrepreneur

47

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

The Esquire Guy’s guide to

uncomfortable conversations

By Ross McCammon

W

hat to do when one of your staffers has poor etiquette, poor hygiene, poor appearance -offenses that don’t warrant a firing but just aren’t appropriate? What do you tell the person, if anything?

Business is awkward. Even everyday business is awkward. “Stan, listen, we can’t abide this price increase.” Awkward. “Jessica, come with me, I want you to meet someone. He’s important.”

Awkward. “Bob, since you’re going to the snack machine, can you get me a bag of Cheez-Its?” Awkward. “Also, Bob, you might want to consider ironing your pants.” Oof. In business -as in life- there are two kinds of awkward conversations: those in which awkwardness can be eliminated and those in which awkwardness can be mitigated. This is going to be about the latter. Because a conversation in which you must correct the behavior or appearance of a fellow adult will inevitably be uncomfortable. Any professional discussion of a personal issue will involve personal humiliation. Telling an employee who wears too much cologne that all that cologne is giving everyone a headache is the same as walking up to the person on the sidewalk and saying, “Seriously, what’s with the cologne? What’s wrong with you?” It’s a slap in the face. It’s embarrassing.

BUSINESS IS AWKWARD. EVEN EVERYDAY BUSINESS IS AWKWARD. “STAN, LISTEN, WE CAN’T ABIDE THIS PRICE INCREASE.” AWKWARD.

48

Entrepreneur

APRIL 2014

The key is in minimizing embarrassment. And the only way to do that is to make this not about the person whose behavior you’re correcting or the person doing the correcting (you), but about the business.

COMMON APPROACHES First, let’s consider two commonly employed approaches to behavior correction: the sandwich and the pivot.

The sandwich involves a criticism delivered between two messages of praise: “You’re doing a great job on the social media. Of course, you snap at people, and in order to move up at the company, you need to work on that. Another thing: nice socks.”

Then there’s the pivot: “I really like how aggressive you were in that sales pitch. Speaking of aggressive, sometimes you snap at people, and that’s not cool.” The pivot is really just an open-face sandwich.

The problem with the sandwich and the pivot (not to mention the rare pivot sandwich) is that any attempt to lessen the impact only confuses the point.

KEY TECHNICAL MATTERS When attempting to address behavior issues with an employee, the corrective sandwich is a common approach: Praise Criticism Criticism Criticism Praise

The corrective open-face sandwich is an awful approach: Praise Criticism Criticism Criticism The corrective salad is even worse: Criticism Criticism Criticism However you decide to do it…

Never address an etiquette issue in front of other people.

Never address an etiquette issue on a Monday morning.

Never address an etiquette issue on a Friday afternoon.

You may point to the policy.

But please don’t point to the policy.

And please don’t take the policy off the wall and hand it to the employee for further study.

And easy on the tsk.

And since confusion always begets awkwardness, you’ve made an awkward situation even more awkward.

So don’t be confusing. Be direct. Be clear about the problematic behavior and the reason it’s problematic. Keep in mind that the reason the behavior is a problem is, ultimately, because the behavior is bad for business.

“I always make a clear distinction between things that don’t work in a business environment and personal character criticisms. I say, ‘There’s nothing wrong with fill-in-the-blank, but in this environment it’s having a negative impact,’” says Tracy DiNunzio, CEO of Tradesy, a fashion resale site and app.

That approach is putting the manager and the employee on the same side of things, and the company on the other side. What you’re doing is throwing the company under the bus.

Companies are useful that way. They won’t get upset about it.

But if the sandwich and the pivot don’t work, what does? David Weiman, a Philadelphia-based management psychologist and consultant, offers this scenario: “Point out the situation. ‘You guys were walking through the reception area.’ Point out the behavior. ‘You were using profanity in front of the client.’ Point out the impact. ‘That did not portray this company in a very professional light.’ Then pause [and] let them say whatever they have to say. You don’t want people to feel persecuted.”

Maybe they’ll apologize. Maybe they’ll take the opportunity to tell you that, well, they don’t like how you cut your steak into little bites at lunch last week … so there.

WHAT ABOUT A POLICY? What you’re heading toward, of course, is a set of rules that will govern behavior. Guidelines. A binder of regulations that no one will read until you point out a violation. A policy.

But policies are tricky- especially for young companies. “It’s hard to write policies around things like behavior without going too far to the other side, where suddenly you have a dress

code. And that’s not the environment a lot of small businesses want,” DiNunzio says.

You also have to be mindful of the law. Says Deb Cohen, senior vice president of knowledge development for the Society for Human Resource Management: “You have to be careful if someone has a hygiene issue, because it could be a medical condition that’s causing it, something the individual can’t control. You have to figure out how to accommodate that.

You always have to be mindful of the law and not be discriminatory. Even if you think it’s something simple, like the way they’re dressed.”

THE PREEMPTIVE CORRECTION Behavior is connected to values. And values are a difficult thing to correct.

The best way to mitigate this kind of awkwardness is to hire people who already share your company’s valuesor at least are willing to adopt them.

“If you describe the kind of environment you’re trying to create and what your values are, and inquire about how the applicant feels about those same things … then it’s clear,” Weiman says.

You can say that you expect people to dress professionally. You can say that you expect a quiet office. You can say that you expect people with bad breath to have a mint. (Maybe don’t lay out that expectation during the interview.) The point is, during that first conversation you can allow the other person to embrace, adapt or reject your values and the behavior that goes along with them before there’s anything at stake, before any damage has been done- not to anyone’s feelings, but to the business.

See this article in its entirety on Entrepreneur.com

TO CORRECT OR NOT TO CORRECT? Annoying office behaviors in need of correcting: • Wearing inappropriate clothing • Talking loudly and laughing on the phone • Hallway yoga • Impromptu mandolin practice • Excessive use of profanity • Disheveled clothing • Chewing with mouth open

• Being late to meeting • Staring • Sleeping • Excessively long hugs Annoying office behaviors that can go uncorrected: • Wearing unfashionable clothing • Snickering on the phone • Desk yoga

• Impromptu air mandolin practice • Excessive use of “literally” • Disheveled outlook • Breathing with mouth open • Being late to monthly birthday celebration • Staring with pen and paper in hand (“Shh, I think he’s brainstorming.”)

• Yawning • Excessively long handshakes

APRIL 2014

Entrepreneur

49

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

| SHINY |

WATCH OUT! Samsung is getting all timely

By Tamara Clarke

Wearable technology is a growing trend and Samsung is in the game to win. Less than a year ago, Samsung introduced Samsung Galaxy Gear, an Android based device that serves as a companion for all Samsung Galaxy smartphones and tablets. In February 2014, the Gear’s successor was revealed: Gear 2. The Gear 2 and Gear 2 Nano were dubbed more “comfortable” choices by popular tech site IGN in their review, which primarily focused on wearability and aesthetics.

The devices function as true accessories, allowing you to switch between an array of wristband colors and prints designed

by Nicholas Kirkwood and Moschino. You can also make a style statement by customizing the home screen background,

clock face, and font. Beyond style, the smartwatch is an extension of the smartphone that it’s paired to; from your wrist you can receive notifications and accept or ignore incoming calls and messages.

New to the Gear 2 and Gear 2 Nano are standalone features like TV control, and the addition of a music player which allows you to leave your smartphone at home and still enjoy music on the go.

Both devices also offer personal fitness

coaching in real-time, allowing you to develop a customizable fitness routine and even monitor your heart rate with a built-in sensor. Samsung has rounded out the upgraded models with Tizen software, making them compatible to more than a dozen of Samsung Galaxy smartphones at launch. Available globally as of this month, the Gear 2 and Gear 2 Nano look like they’re going to hit the market right on time.

| THE FIX | | MOBILE TECH |

YOU’VE GOT GAME!

QAMIRA DELIVERS OFF-THE-SHELF VIRTUAL GAME CREATION API

By Tamara Clarke

Qamira delivers a unique software integration application programming interface (API) offering full Virtual Camera control in real-time, allowing them -or any third party- to build augmented video output applications based on the real-time processing of an ultra HD, panoramic image. For those of you not in the know, API pretty much dictates how software components “talk” to one another. Already used in a variety of sports and surveillance related spheres, Qamira’s Virtual Camera solutions mean that gamers are going to be all over this one since by allowing access to stored data, Qamira RTAPI 1 allows for the creation of virtual games. With tiled grids that mimic playing fields, game play is simulated in fully calibrated imagery that offer the ability to measure actions, movements, distance, and even simulate virtual performances. Other than gaming, televised athletics stand to benefit here too, since RTAPI 1 offers access to a panoramic image, like a football field at broadcast quality speeds of 50/60 frames per second. This splashy tech enables sports broadcasters to capture seamless play across an entire field or stadium. From fieldaction to crowd-wide pans, Qimera doesn’t want you to miss a beat.

50

Entrepreneur

APRIL 2014

“PAY THE MAN SO WE CAN GO, ALREADY!”

Check for Android Enjoy paying your electricity or phone bills online or through apps, but can’t stand how so many of those apps and websites perform so poorly and are about as user-friendly as an abacus? Check is an app available on Android phones that helps you keep up your monthly payments. It has a simple interface that shows you which bills have been paid or have yet to be paid, and keeps you on your toes because you have to your bills four days in advance to avoid any fees. Most major wireless carriers and cable companies, such as Comcast, AT&T, and Verizon, as well as utilities companies can have their bills paid through Check. Users can also keep up with their credit card balances for several large banks, including Bank of America. While we think having something convenient like this available in the Middle East sounds exciting, do we really want to expose such private information? The jury is still out on that one.

APRIL 2014

Entrepreneur

51

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

Media management directives for your corporation CHOOSING THE RIGHT COVERAGE AT THE RIGHT TIME

By Octavia Nasr

W

hen it comes to giving interviews, do you go for the big guns or settle for smaller media? We can write a whole book on this subject. The options are as diverse as modern media, as colorful as businesses and as individual and unique as the executives and entrepreneurs themselves.

Here is a simple answer for you: If you have a choice, you should always go with the bigger media outlet, the one with the larger audience. Choose the most-viewed show, most-read publication, and speak to the most popular reporter. Don’t you wish life were this simple with clear options and easy decisions?

Celebrities fill out media pages and adorn publication covers all the time.

They are used to the attention, they even seek it and often spend a great deal of time weighing in on the mat-

ter. They choose the media outlet that suits their image best- this means gaging which outlet carries with it the most appropriate association, and will best carry their message to their target audience. It’s the same scenario with the world’s movers and shakers; they are in the news for a reason -some more than others- depending on the events they help shape and their impact on the world. When it is your time to shine, you should approach your fifteen minutes of fame seriously and make your decision wisely, mainly by understanding why you are there and accomplishing your mission by staying on message.

Always treat every media appearance as a showcase. No matter how small or large, the opportunities media mentions afford you are immense and you should make sure to get a lot of mileage out of them.

STRATEGIZE

While some executives like to jump on every media opportunity, others speak only to what is considered “elite”. My advice resides somewhere in between and oscillates constantly between the two extremes. A simple way to find your comfort zone is to answer these questions: 1. HOW OFTEN DO YOU GET REQUESTS FOR INTERVIEWS?

If you get many requests, then go with the ones that make more sense to your business and help you reach the largest number of your target demographic. If you don’t get many requests, find out why and remedy the situation. Work on raising your profile by participating in forums or conferences to get the right exposure and to facilitate efficient networking.

After the selection process, then give the interviews and always position yourself for the next big one when opportunity presents itself.

2. ARE INTERVIEWS AN IMPORTANT ELEMENT IN YOUR COMPANY’S MARKETING STRATEGY?

If your business depends on constant appearances in print and web publications to remain current and relevant, then maximize the impact by choosing the appropriate mediums. Spread these appearances out over a period of time- it’s better than doing a slew of media at once.

Keep your contributions interesting; provide fresh information and a variety of ideas. Don’t be redundant by recycling the same information- it is about showing variety, originality, and even an element of surprise. Do your research, pick the media outlets that serve you best, engage them appropriately and go from there.

52

Entrepreneur

APRIL 2014

3. DO YOU HAVE A MAJOR ANNOUNCEMENT OR UPDATE TO MAKE?

When you have a major announcement to make, strategize your appearance and plan ahead. Choose the most impactful media outlet and offer them an exclusive interview. Don’t burn your bridges- exclusive means no one else gets you, so don’t exploit a loophole. Building trust with the media is very important and it’s important to remember that every media outlet is after a scoop and wants to distinguish itself from the rest. These opportunities are rare and you should use them to your advantage and maximize their impact. The worst thing you can do?

Having a breakthrough without getting the attention of the appropriate media.

Think of media as different pies in a store. Some are being distributed freely while others are sought or bought. Then come the leftovers. If you are in business, you like positive attention and you welcome any media that will help achieve that aim. When the media pie is divided up, some get large slices, others get smaller slices, still others get the filling, the icing or the cherry on top- consider that even the crumbs have value and therefore there are always going to be happy-takers.

For the proactive entrepreneurs, the forward planners, the question is do you want a small piece of the big pie or a large piece of a smaller pie? Plot your media strategy accordingly and discern the type and the frequency of coverage you find most advantageous.

NETWORK & PLAN FORWARD

The simple rule is that it is always good to be featured in the media; this is only an indicator of your level of importance.

Some people would argue that even negative publicity is better than being forgot-

ten. The question most relevant here is, “What do you want?” Once you answer that, the rest follows.

Usually media organizations decide their own agenda based on the specialty and research arenas of their journalists. You can certainly trigger interest by making your activities known, but the final feature decision rests with them. In some instances, you can call attention to your work through direct contact with a media outlet via public relations channels like distributing a press release or a courtesy call to their assignment, booking or planning desks. Sponsorship and CSR activities are both alternative ways to garner media attention as well.

No matter which route you choose, your actions and accomplishments are the best way to draw media attention, make sure they are positive if you want coverage to be favorable.

Playing with the big boys and girls is fun, but it also draws more attention to you than you might be ready to field. Before you venture in that direction, make sure you and your business have what it takes to withstand the heat. It also helps to have an experienced publicist manage your appearances and interviews. It’s not easy to maintain your position at the

top, so think of that as the big prize that happens only occasionally (if not rarely).

As you work your way towards that, building relationships along the way is the key to media exposure longevity.

SHORTLIST MEDIA MANAGEMENT MUSTS In this age of speed and real-time engagement, your company needs to decide on these important points.

1. If media appearances are a part of your strategy 2. If you have a preference for specialized media 3. Your public relations strategy in the event of controversy and crisis control scenarios 4. Clear guidelines for staff dealings with the media 5. Only authorized personnel can speak to the media in corporate scenarios 6. A concise and efficient calling tree in handling emergencies

Octavia Nasr is the founder of the United States-based Bridges Media Consulting (BMC). Specializing in integrating traditional and digital media, media and newsroom management consulting. BMC also executes staff training, talent coaching, in addition to reputation building and management. BMC serves an elite clientele of brands, businesses, and individuals in the Middle East, North Africa, Europe, the U.S. and Asia. Nasr moved to the entrepreneurial world in 2010 after a long career in journalism, 20 years of which were in various senior positions including Executive Producer, Anchor and Senior Editor of Mideast Affairs at CNN. Nasr’s first job was with LBC in Lebanon; she served as Assistant News Director, Executive Producer and later War Correspondent. To read Octavia Nasr’s opinion editorials, visit her blog octavianasr.com and follow her updates on Twitter @octavianasr.

CEO SARAH AL SUHAIMI BRINGS WOMEN TO THE FOREFRONT OF CORPORATE KSA Another victory for women in the workplace! NCB Capital, one of Saudi Arabia’s leading investment banks, has recently appointed a new CEO, Sarah al Suhaimi. Al Suhaimi worked her way up to the top, after overseeing assets management at Jadwa Investment for seven years after working at Samba Financial Group for five years. Now, she’s the CEO of an investment bank with US$12 billion in assets.

That said, there is still much to do to bring women to the forefront of the business world, not just in the Middle East but worldwide too. A recent study by U.S.-based research group Catalyst revealed that women only lead less than 5% of Fortune 500 companies based in the United States.

APRIL 2014

Entrepreneur

53

Seven ways

to own your online reputation

I

By Dana Khairallah

t’s a well-known fact that people are more likely to tell their social circles about a negative experience than a positive one- bad news travels fast. Couple that with the major influence online reviews have on purchasing decisions and you’ve got yourself a losing equation. This is the right around the time when brands or public figures decide to call up seasoned reputation managers looking for a quick fix to make it all go away. And although online crisis management tactics could stop some of the bleeding, the wound needs time to heal.

54

Entrepreneur

APRIL 2014

To understand reputation management one has to think of it like insurance, you don’t think about it when you don’t need it, but you’re really grateful to have it when you’re in trouble.

Online reputation management is relatively new, most small to medium businesses in the region have just come to terms (and budgets) with hiring agencies, freelancers or in-house experts as community managers to develop their social media strategy and manage their day-to-day online presence. While that

ETHICS | ESQUIRE GUY | MARKETING | PRO

is essential, it’s just a component of the overall long-term strategy and effort it entails to truly control an online reputation.

When was the last time you tracked or monitored your brand’s reputation?

(No, the occasional Google search doesn’t count.) Are you in control of those results?

If not, here are a couple of tactics that you should be aware of.

1 TAKE A REACTIVE APPROACH RATHER THAN A PROACTIVE ONE. Here’s why: SEO is a science; tactics should be brand-specific, based on a unique formula of content, keywords, links, and of course a thorough understanding of how search algorithms work.

All of this needs time. So when a popular blogger writes a negative review about your product, it’s not by coincidence that it ranks only third after your website and Facebook page- it means that you didn’t do your homework. This can have adverse implications on potential clients or prospective stockholders searching for you online. Make no mistake, content can’t be deleted completely, but had you maintained a stronghold on your search rank, that review would have barely made it to page three of Google.

GOOGLE IS VERY WELL AWARE OF TACTICS SUCH AS OVER-STUFFING KEYWORDS TO “CHEAT” THE SYSTEM. THEY CAN GET YOU DEMOTED IN RANKINGS OR EVEN COMPLETELY REMOVED.

2 DISMISSING A NEGATIVE REVIEW OR INCIDENT. Brands do this in the hopes that it will simply blow over, especially if the complaint is from a credible source or influential blogger. Minimize the damage by responding responsibly and acting fast, before the incident spreads and becomes costly. Instead of simply apologizing and offering an unhappy customer a replacement or a gift card, you could find yourself potentially spending thousands on an online and offline PR campaign to shift consumer perception as a result of that single online post. Your response will also reflect accessibility and awareness on your part and will give audiences enough information make informed decisions and avoid misconceptions.

TREPONOMICS

3 COUNTER NEGATIVE REVIEWS BY ENCOURAGING FEEDBACK. This can be done by publishing, sharing, and linking to positive reviews and online testimonials about your brand. This is a win-win for both the brand and the bloggers or reviewers who would like to drive traffic to their sites, broaden their audience and increase their followers.

4 REGISTER YOUR OWN DOMAIN AND OTHERS THAT COULD POTENTIALLY HARM YOU. That means if that .com .me and .co version of your domain name are available, purchase them all! This way no one else will. Seems pretty straightforward right?

Well you’ll be surprised to learn how many brands and public figures have missed that opportunity opting for social media platforms alone instead.

5 CHOOSING THE RIGHT KEYWORDS. You want to make sure that when people search for you they find you, therefore this should be done in coordination with your content strategy. But watch out, this can be a slippery slope. Google is very well aware of tactics such as over-stuffing keywords to “cheat” the system. They can get you demoted in rankings or even completely removed. And well, if you’re not on Google than you basically don’t exist online!

6 USING THE SAME ACCOUNT HANDLE ON ALL YOUR SOCIAL MEDIA PLATFORMS. For example if you go by the name of CompanyXMiddleEast on Facebook make sure you do the same for Twitter, Instagram, and all of your other platforms. This will allow people to find you faster and give you a more official presence especially if you’re a relatively new brand.

7 USE SOCIAL MEDIA MONITORING TOOLS TO TRACK. This means tracking everything that is being written about your brand out there, such as Google Alert, WHOSTALKING, and Social Mention to name a few.

MINIMIZE THE DAMAGE BY RESPONDING RESPONSIBLY AND ACTING FAST, BEFORE THE INCIDENT SPREADS AND BECOMES COSTLY.

Dana Khairallah is the sole writer and content creation specialist at ivysays.com, a lifestyle blog featured in several regional print and web publications. Through her work as a freelance content copywriter and on SEO with several corporate entities, Khairallah has built her expertise as a knowledgeable and experienced social media specialist working with both brands and personalities on social media.

She has devised online strategies for several renowned Middle East brands, and most notably currently develops and manages the social media strategy and presence, as well as online and offline copywriting of a leading beauty brand and tier one personalities in the Middle East.

A graduate of the University of Toronto with a BA in Professional Writing and Communications, she is also regularly commissioned as the social media trainer for several brands, most notably in the technology retail sector. Khairallah served as a Program Officer on an extensive portfolio for the National Democratic Institute (NDI) for a period of four years, a multinational organization working to support and strengthen democratic institutions worldwide. Khairallah’s first passion in the field of communications is brand and personality reputation management consulting.

APRIL 2014

Entrepreneur

55

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

WhatsApp with that?

IM doesn’t have to start and end there

By Kareem Chehayeb

M

ark Zuckerberg’s empire continued growing after Facebook acquired mobile instant messaging app, WhatsApp for US$19 billion in February. The amount of buzz it created was second to none; I don’t remember everyone going nuts about Facebook purchasing Instagram for $1 billion back in 2012.

It appears that people’s primary concern with Facebook is the security and privacy of their content- they’re worried about their shared content and conversations on WhatsApp. If you fit the BBM privacy-seeking bill, here are some BlackBerry Messenger is back, and it’s cross-platform! BlackBerry recently alternative cross-platform mobile launched its iOS and Android versions IM services that you may (or may of BBM and yielded generally positive not) have heard of. results- there was even a waiting list

MARK ZUCKERBERG IMAGE © FLD | SHUTTERSTOCK

for people who wanted their BBM pins.

BBM’s interface is slicker than WhatsApp, and enjoys the same features, including a location-sharing feature.

What BBM users will also mention is

that sharing your BBM pin means that you don’t have to reveal your phone number, which plays a role in keeping your info relatively safe. Of course, there’s also the infamous “Ping” button. Windows and Nokia users were recently welcomed into the fold: Official announcements have been made that BBM will be available on both platforms very soon.

56

Entrepreneur

APRIL 2014

TELEGRAM Telegram’s the new kid on the block, getting some special attention after WhatsApp’s acquisition. Telegram is open source, having two official apps for iOS and Android, but many unofficial ones (that they promote on their website) for Windows, Mac, and even Linux. While Telegram shares all of WhatsApp’s features apart from voice messaging, the app is cloud-based, meaning that users can access their messages from multiple devices. It is also marketed to be the safest IM service. Telegram allows you to start “secret chats” which leaves no trace on Telegram’s servers, and even has a self-destruction button to eradicate any evidence of the conversation. Telegram also claims to be safe from hackers, a bold statement. Telegram backer, Paul Durov, is even willing to give $200,000 in Bitcoin to whoever can crack into a conversation between him and a colleague and retrieve a secret email that they’ve shared.

LINE This IM app has made waves in East Asia, and recently in Spain, but hasn’t made its way elsewhere. Line is developed by the Line Corporation, a subsidiary of a South Korean corporation based in Japan. This app boasts almost all of the same features of WhatsApp, and it’s got a few more.

Two standout features? The first is the method of adding contacts- similar to BBM, there are multiple ways of add-

ing contacts without having to reveal your phone number. While synchronizing your mobile phone contact list is an option, you can also scan QR codes or even create a Line user ID as an independent profile. And finally, while many IM services are multi-platform, Line is also available on Windows 7 and 8, as well as Mac OS X computers.

A web-based app was also available, but that recently shut down.

VIBER Viber was the first alternative that everyone considered. Why? It’s similar to WhatsApp (nearly identical), and most people already have downloaded it to use its free phone call services. Viber users can call each other internationally for free, and its recent updates include voice messaging, as well as location and file sharing, making it a super smooth transition from WhatsApp. While Viber was also acquired by Japan’s e-commerce mammoth Rakuten for $900 million a few days before WhatsApp was purchased by Facebook, it didn’t seem to be an issue for Viber’s current user-base.

APRIL 2014

Entrepreneur

57

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

GOOGLE HANGOUTS

SKYPE Skype made a massive breakthrough as a revolutionizing program, resulting in it being banned in some countries, mostly due to fears of it negatively impacting telecommunication companies.

Now that Microsoft has purchased Skype and shut down MSN Messenger (throwback anyone?), Skype does more than just free online video calls.

While Skype always had the option to function as an IM service, it’s available on iOS, Android, BlackBerry 10, and Windows Phones as well as Windows, Apple, and Linux operating systems.

Gamers can even use Skype on portable and home consoles, including the Xbox One and the PSPVita. Sounds pretty solid to me; you won’t have to switch programs whether you’re out or at home. You can use Skype on the go now, even for basic IM. With Skype users exceeding 50 million as of March 2013, it seems that a transition to Skype as a WhatsApp alternative is a smooth and convenient one.

While Google+ hasn’t knocked out Facebook, Google Hangouts has become quite popular, especially given the massive number of Gmail users. A plus is that setting up a “hangout” doesn’t require you to download software, it can be done via Gmail seamlessly. Google Hangouts apps are available on Android and iOS phones as well as Windows, Mac OS, and Linux computers (sorry BlackBerry fans). While Skype now runs as a freemium program, having to pay for special services like having video conversations with multiple users, Google Hangouts let you do that with 10 people at once. With many consumers liking the idea of sticking to as little programs as possible, it seems Google Hangouts is another good candidate, especially given the amount of Gmail users today.

FACEBOOK & WHATSAPP “CHILL OUT, EVERYBODY!” FOUNDER BLOGS ABOUT PRIVACY CONCERNS WhatsApp founder Jan Koum published a blog post urging WhatsApp users not to worry about private information being used

by WhatsApp or Facebook. Koum claimed that WhatsApp never mined user information and never will, also stating that if Facebook would compromise those values, then they wouldn’t have let the acquisition happen. Back in February, Facebook CEO and Founder Mark Zuckerberg said that massively interfering in WhatsApp would 58

Entrepreneur

APRIL 2014

be “pretty stupid,” given WhatsApp large user-base of 465 million. Besides, given the number of alternatives and the heightened awareness of privacy issues, Facebook interfering would compromise WhatsApp in the market. That said, we aren’t sure whether Koum will stick around, although predictions abound that he’s leaving sooner than later. Therein lies the question- if Koum leaves, what’s on the agenda? It’s anyone’s guess.

APRIL 2014

Entrepreneur

59

start it up

Wacky idea | who’s got VC | Q&A

Globetrotter

CHILDREN’S APP BRINGS LOGIC & LANGUAGES TO THEIR FINGERTIPS Dr. Sarah Faisal Al Saud discusses Anamil tech, apps & Arabic

D

r. Sarah Faisal Al Saud’s company, Anamil Tech, has launched a learning and logic app for children, Pacca’s Carousel. The interactive learning tool is both fun and multilingual, and was developed drawing on Al Saud’s educational background, heritage, and desire to instill a love for Arabic in her children. “Arabic is a beautiful and rich language and I have a natural connection to it. It was the initial language I wanted to include simply because it’s my mother tongue, and because of the lack in educational Arabic apps at the time I decided to start this project,” explains Al Saud. After gaining a PhD in Human Computer Interaction (HCI) at University College London, Sarah went on to work at the university as a research associate before leaving to establish Anamil Tech.

Formerly a lecturer in the Computer Science and Information Technology department at King Saudi University in Saudi Arabia, she is currently based in the United Kingdom.

60

Entrepreneur

APRIL 2014

The founder established Anamil Tech in 2012, putting her PhD in HCI to work. The mission statement of the young company reflects Al Saud’s first product very well, stating that their goal is to “promote multilingual and crosscultural learning through age appropriate engagement, expression, fun, and safety.”

Apart from the existing languages, Al Saud’s app will be receiving a new language injection soon- “Mandarin was also on the list as it has currently been introduced and taught in some of the schools in the UK; however, we didn’t find a child to record it in time for the launch and used Cantonese instead.

Luckily, we have recorded Mandarin and will be launching an update of Pacca’s Carousel soon.” What was her reasoning behind choosing the other languages?

“Due to the fact that I live in the UK and I was targeting the UK market when I started, we included French and Spanish as they are the second languages that are taught in schools in the UK as part of the school curriculum. English is the

universal language and is the second language that is taught in schools in Saudi Arabia and the Middle East in addition to it being the first language in the UK.” Dr. Al Saud certainly has a lot to share, and in terms of the future she says that there is definitely something on the horizon. “The ideas never stop! We are working on Pacca’s next adventure. All I can say is that Pacca will be doing some traveling.” Multilingual and a world traveler? Pacca is globalization at your child’s fingertips.

“MULTILINGUALISM IS PROMOTED IN MANY PARTS IN THE REGION AND SOME PARENTS ARE AWARE OF THE BENEFITS OF EXTRACURRICULAR ACTIVITIES FOR YOUNG CHILDREN” DO YOU CONSIDER ANAMIL TECH A STARTUP?

In some ways I do. I also hope for it to develop into an institute and research centre that offers expertise and technological solutions for all child learning and development matters not limited to online usage.

In the future, I would like to setup a non-profit foundation with the aim to teach children about technology, and involve them in the design process as participatory designers by running free classes, in addition to providing under privileged with the technology that supports learning languages.

HOW LONG DID THE PROCESS TAKE FROM INCEPTION TO EXECUTION AND LAUNCH? WHAT LED YOU TO DEVELOP THE IDEA OF A LOGIC-FOSTERING APP FOR CHILDREN?

The entire process of setting up the company, to branding, design, product research, implementation, and testing the app took around 18 months. I was the only employee at Anamil Tech, and the task was pretty demanding in addition to balancing it out with being a mother. Logic and problem solving are essential skills as they form the fundamentals to successful learning in the future. Children love to engage in problem solving activities and I wanted to create an app that would be fun and educational at the same time.

WHAT DID YOU DO TO LAUNCH THE APP FOR MOBILE AND TABLET?

We worked closely with SMACK agency to launch the app on both mobile and tablet for iOS and Android.

Anamil Tech also launched Pacca’s Carousel on the Kurio, a tablet designed

by KD UK, an expert developer and distributor of licensed electronic learning products in the UK. Pacca’s Carousel is now available on Kurio devices. At the design stage, Pacca’s Carousel was designed for both screen sizes. We took the mobile fist into consideration due to the small screen size. We wanted the size and icons to be large enough for children to see and their little fingers to interact with.

WHAT FACTORS WERE YOU LOOKING FOR WHEN YOU CHOSE TO PARTNER UP WITH SMACK, YOUR DEVELOPER FOR PACCA’S CAROUSEL?

I first met with SMACK agency back in 2012. I came to them with a vision and an idea that I wanted to be executed. They were a small agency back then, and have grown ever since to become an award-winning agency.

I first met with Lubna Keawpanna, their creative director, and I instantly felt that she completely understood where I was coming from and where I wanted to go with Pacca’s Carousel.

They took the time to listen to me and incorporate my input and vision. They did a great job in branding and creating Pacca first before I felt comfortable enough to start designing and creating the app with them. One of the traits that appealed to me the most about the agency is their ability to provide both creative and IT support, freeing me from the hassle of commissioning two separate agencies to fulfill both tasks- creative and technical.

HOW DO YOU PROMOTE YOUR PRODUCT TO PARENTS AND ENSURE THAT THEY ARE VISIBLE IN A HIGHLY-SATURATED MARKET?

We are using social media as the primary marketing stream for Anamil Tech’s product. The social media strategy is currently targeting the UK and the Middle East. We are aiming to target mothers through press and social media, in addition to exploring opportunities to collaborate with local nurseries and schools. In the UK, media in general is more developed and there’s an evident multilingual trend that helps us with promoting through competitions and giveaways.

[The] Middle East is a challenging market as supply is higher than demand. Although e-commerce has recorded high results in the Middle East, there yet seems to be resistance to purchasing paid learning apps in general. However, multilingualism is promoted in many parts in the region and some parents are aware of the benefits of extra-curricular activities for young children. In addition, I am working with a number of consultants and advisors in the fields of early child learning and technology and working on developing geographical widespread groups dedicated to different cultures and languages.

AS A MOTHER AND AN ENTREPRENEUR, HOW DO YOU SPLIT YOUR TIME?

It is extremely difficult. My children are the most important thing to me, they are my priority and always come first. I make sure that I am there for them and that I am available. I try to fit my working hours around the time they are at school or sleeping.

It gets even more difficult when I need to travel abroad or need to go out on meetings at the time they are at home. I always try to make it up to them. Finding the right balance is very hard and I feel like I am working around the clock!

IN HINDSIGHT, WHAT IS A MISSTEP THAT YOU THINK YOU TOOK WITH ANAMIL TECH IN THE EARLY STAGES OF YOUR COMPANY?

In any situation, there’s always an evaluation stage of how things could have been done in a better way.

However with Pacca, I was pretty happy with the end result and the way we approached it. Mistakes cannot be avoided; I would say that one of the missteps I have made is proper planning at the initial stages of the project. I was just so excited to get going and jump into production! If we take Anamil Tech’s site as an example, overall I love the look and feel of site as it stands, however I realized that we would need to add more sections to it. It would have been better to have planned these in advance.

Another example I can think of is planning the languages and doing the recording sessions ahead of time. I would have loved for the Mandarin to be included with the initial launch of the app. I have learned a lot from this past experience. I am sure more missteps will happen, but the important thing is that I learn from them and use them as lessons to apply in the future.

APRIL 2014

Entrepreneur

61

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

still showing that you have guts and the ‘trep spirit. Be resourceful in handling projectsbetter yet, take on the projects that no one else wants to do and show off your capabilities. Be more than the job description and it will get noticed by your higher-ups.

3. ADOPT NEW SKILLS

WHAT I LEARNED FROM INTERNSHIPS THAT HELPED ME LAND MY JOB

By Pamella de Leon

B

eing a recent grad, I’ve come to learn that in the job-hunting world, they won’t look at your resume if you don’t have some sort of relevant work experience. Internships are a great resource for that, but that’s not the only thing you should be taking with you from your student work stint.

Whether you were doing coffee runs or pitching stories, it’s important to absorb lessons that will help you land and succeed at that future job. Here are eight things that I’ve learned from my past internships that helped me land my job at Entrepreneur Middle East.

62

Entrepreneur

APRIL 2014

1. PUNCTUALITY IN ALL ASPECTS

Whether it’s arriving early in the morning or getting a task done on time, punctuality is essential.

Manage your time well to get things done. It shows that you’re dedicated to your work, and that you’re capable of responsibility and professionalism.

2. BE THE EAGER BEAVER INTERN

Show your enthusiasm by absorbing everything like a sponge, from corporate culture to knowing the nitty-gritty processes involved in company deliverables. Take initiative and even if you’re unsuccessful, you will still learn how you can improve upon your work. Another benefit of a rejected idea? You’re

Chances are interns are either underpaid or completely unpaid.

Build skills that you think will be useful in your industry, and consider that capitalizing on your work.

Utilize the skills in part-time jobs or freelance projects in tandem with your work placement. When I was interning, I covered events as a videographer- it was a good networking opportunity. If I had extra time, I would also write articles about the events as portfolio samples. Later on, I decided to help out budding art initiatives with their marketing by providing video teasers. These vids helped me gain other opportunities, and now, especially as I work at a company that is very digi-centric, I’m more aware of the advantages of online video both for my resume and as a marketing tool. It’s not about being a jack-of-all-trades but instead using your skills to strengthen your forte.

4. RESEARCHING YOUR TARGETS

Source out potential employment- track people and companies that you want to work for. In my case, I read the publications that I wanted to work for and I also suggest following the writers you admire. Follow the company on

LinkedIn to keep apprised of vacancies and read all of their social media platforms to get a better feel of their office culture. Engage with them on social media so that you’re on their radar, and they see that you have an interest in the company’s news. Look for their contact information then swallow your shyness and send that email- or better yet, cold call.

5. CULTIVATE A STRONG SOCIAL MEDIA PRESENCE

Keep a blog with your portfolio so companies can both Google your work and so that they can ascertain that you have the highly-coveted skills required to maintain a relevant online presence. Have a public account where your voice and views about topics in your industry can be seen. Also, keep in

mind that once you publish something online, it never goes away- so think before you share.

6. CONNECT WITH PEOPLE AT YOUR CAREER-LEVEL

We always hear how it’s important to have experienced industry leaders to look up to, but it’s also essential to practice horizontal loyalty and develop relationships with people who are at the same career level, no matter which industry they’re in. Collaborate on projects together and provide feedback on each other’s recent work.

Another great trick? Link build to one another- as they grow, so do you.

7. FIND OUT WHAT MAKES GOOD THINGS TICK

If you want to be a writer, read good articles by estab-

lished journalists twice and ask yourself, “Why is this so good?”

Pick it apart and notice the elements that make it great so that you can emulate that essence. If you’re looking for a PR or marketing position, evaluate strong press releases, advertisements, CSR movements, and even events that are impactful.

Learn by osmosis and then apply it to your work.

8. DO YOUR OWN THING

If all else fails and you can’t find an opportunity that you’re ecstatic about, think about starting your own. Compared to other regions, the Middle East is still a relatively fresh market. Propel the entrepreneur inside of you and seek an untouched niche that can be addressed. Look at the work that Syed Ahmed and Iba Masood are doing with Grad-

SHOW YOUR ENTHUSIASM BY ABSORBING EVERYTHING LIKE A SPONGE, FROM CORPORATE CULTURE TO KNOWING THE NITTY-GRITTY PROCESSES INVOLVED IN COMPANY DELIVERABLES.

berry. They noticed that there was no platform for university students and young grads to job search, so they started their own. Now, they’re expanding to offering online courses for users to beef up their CVs. Make awesome stuff now and carve out your own future.

Sticking your neck out and trying new things isn’t easy.

There are rejections on the way to landing that great job, but with stubbornness and dedication you’ll get there. Whether a good or bad experience, learn all the lessons you can from the outcome and the process. It worked for me!

ONE SMALL STEP FOR BUZZ ALDRIN, AND ONE LARGE STEP FOR ABU DHABI GLOBAL AEROSPACE SUMMIT 2014 UAE There’s a legend in the building! While the Global Aerospace Summit taking place in Abu Dhabi on April 7 and 8 is already a highly anticipated event as is, the most talked about speaker is definitely legendary astronaut Buzz Aldrin. Aldrin will be keynote speaker on the second night of the summit.

He’ll be talking about the future of space exploration, and how international cooperation is necessary for long-lasting space advancements. One of the first people to ever step foot on the moon, 84 year-old Aldrin proposes that we hit Mars as soon as 2030. It’s already exciting that an aerospace legend is attending this summit, but we’re really looking forward to learning more about his vision for the future of humanity and the final frontier.

APRIL 2014

Entrepreneur

63

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

SETTING UP A COMPANY? GET YOUR PRIORITIES STRAIGHT Legal advice before leg work in UAE

By Nita Maru

I

t is a well-established fact that every company in the UAE must be duly licensed to operate in the country, irrespective of whether it is commercial, professional, or industrial in nature. What is less evident is how the law and lawyers play a vital role in the formation of a new company.

Aspiring entrepreneurs, and those who already practice their profession but seek to grow it, will do well to consult a team of licensed solicitors who can advise on the procedures and

processes of procuring a commercial licence, and one that is best suited to existing and future plans.

The laws in the UAE are rarely demanding, but can often prove to be daunting. Commercial licences are never generic, but instead, are specific to the nature of the business activity and its proposed location.

For instance, the Commercial Companies Law and the Trade Agencies Law is the primary federal legislative framework controlling commercial activi-

ties in the UAE, but each of the seven emirates, and every free zone has its own set of rules and regulations.

Foreign entities interested in establishing a presence in the UAE have five options- create one of seven types of permanent establishments, establish a branch office, create a civil company (in Sharjah or Dubai), enter into a commercial agency agreement, or create an entity in a free zone.

The latter is definitely a popular and preferred option:

free zones allow for up to 100% foreign ownership, and are favoured with reduced trade barriers, tariffs, and quotas.

The uniqueness of a company registered in any of the UAE’s free zones is the ability to have a real office and truly operate within the country, when compared to traditional offshore companies which cannot operate on the territory where they have been registered.

Again, in contrast to classical offshore companies elsewhere in the world -where financial

THE LAWS IN THE UAE ARE RARELY DEMANDING, BUT CAN OFTEN PROVE TO BE DAUNTING. COMMERCIAL LICENCES ARE NEVER GENERIC, BUT INSTEAD, ARE SPECIFIC TO THE NATURE OF THE BUSINESS ACTIVITY AND ITS PROPOSED LOCATION.

64

Entrepreneur

APRIL 2014

movements are scrutinized by banks and supervisory bodiesonshore companies registered in the free zones of the UAE are considered as full-resident, but are not taxed, and therefore do not raise much reason for investigation.

That said, following the introduction of the Regulations for Jebel Ali Free Zone (JAFZ) Offshore Companies in 2003, international companies can establish JAFZ offshore companies, with benefits that are superior if not similar to other international offshore jurisdictions. Since 2006, the emirate of Ras Al Khaimah has also allowed the establishment of RAKIA offshore companies.

Small and medium sized enterprises (SMEs) can typically be formed by partnerships between Emiratis, between associated and inactive partners, between two equal partners, or by general and participating partners who must be Emiratis and expatriates respectively–

making another compelling case for using a sound legal structure for setting up a local business.

For independent practitioners who wish to start small, getting a professional licence or setting up a sole proprietorship company are smart solutions.

Even at a quick glance, there are multiple options for any potential entrepreneur, and it is only prudent to ensure that all aspects of establishing a business are clarified before starting off. We have been advising and assisting expatriate residents in establishing all types of business entities -both onshore and offshore, and special purpose vehicles (SPVs) for projects- and I can state with great certainty that the decision eventually boils down to each individual’s specific goals and needs.

Having a solid idea and a sound business plan are but starting points. Establishing a company in the right jurisdiction quite often involves jurisprudence. Besides being official

STAYING TOGETHER FOR THE KIDS

agents for the Jebel Ali Free Zone Authority (JAFZA), we provide professional and personalized assistance to clients who wish to set up a business anywhere in the country, ensuring that applications meet with the approval of respective authorities. Typically, this involves due diligence on everything - industry, partner, location- before moving ahead with paper work, legal work, and leg work.

And finally, there is the matter of investment, and a great solicitor should be able to design bespoke solutions to suit exacting budgets, and yet remain flexible and scalable.

THERE ARE MULTIPLE OPTIONS FOR ANY POTENTIAL ENTREPRENEUR, AND IT IS ONLY PRUDENT TO ENSURE THAT ALL ASPECTS OF ESTABLISHING A BUSINESS ARE CLARIFIED BEFORE STARTING OFF.

DOHA HOSTS A SYMPOSIUM TO TACKLE YOUTH UNEMPLOYMENT IN THE REGION Employment is still an issue for fresh college graduates and young adults, and the Middle East and North Africa bear a great burden; an estimated 29% of young adults in the region are unemployed. To tackle these issues, Qatar’s Georgetown University hosted “The Doha Evidence Symposium: Increasing Youth Productivity in the Middle East and North Africa”.

The three day event took place from March 6-8 and was organized by the International Labor Organization in partnership with Silatech, the Arab Urban Development Institute, and the Abdul Latif Jameel Poverty Action

Nita Maru, British qualified solicitor and Managing Partner of TWS Legal Consultants, has over 16 years of experience at senior positions held in London and the UAE. Nita has a British law degree, and is a member of The Law Society of England and Wales. She also holds a full Legal Consultancy license from the Government of Dubai Legal Affairs Department and is a registered lawyer with the DIFC Courts Nita is also an active member of the Entrepreneurs Organization (EO) in Dubai. She is well-known for her personal yet professional approach to resolving ‘real problems faced by real people’ www.twslegal.ae

Below: Raj Desai Associate Professor Georgetown University (USA), Dr. Bruno Crepon Professor of Economics at ENSAE & École Polytechnique (France), and Dr. Tarik Yousef CEO of Silatech (Qatar). Moderated by Noura Kamel of Silatech.

Lab. The end goal? To change things for the better via a youthfocused intervention program.

Academics, policy makers, and researchers presented ideas and knowledge on ways to improve employment and thus increase productivity in the region.

Among the speakers were Maisoon Al-Amarneh, Labour Policy Analyst from the Economic and Social Council of Jordan, Azita Berar Award, Director of the Policy Department of the International Labour Organization, and Dean Karlan, Professor of Economics at Yale University and Founder of Innovations for Poverty Action.

APRIL 2014

Entrepreneur

65

TREPONOMICS

ETHICS | ESQUIRE GUY | MARKETING | PRO

How long does it actually take to form a new habit?

(Backed by science)

By James Clear

M

axwell Maltz was a plastic surgeon in the 1950s when he began noticing a strange pattern among his patients.

When Dr. Maltz would perform an operation -like a nose job, for example- he found that it would take the patient about 21 days to get used to seeing their new face. Similarly, when a patient had an arm or a leg amputated, Maltz noticed that the patient would sense a phantom limb for about 21 days before adjusting to the new situation.

These experiences prompted Maltz to think about his own adjustment period to changes and new behaviors, and he noticed that it also took him about 21 days to form a new habit. Maltz wrote about these experiences and said, “These, and many other commonly observed phenomena tend to show that it requires a minimum of about 21 days for an old mental image to dissolve and a new one to jell.” In 1960, Maltz published that quote and his other thoughts on behavior change in a book called PsychoCybernetics. The book went on to become a blockbuster hit, selling more than 30 million copies.

And that’s when the problem started.

“IT REQUIRES A MINIMUM OF ABOUT 21 DAYS FOR AN OLD MENTAL IMAGE TO DISSOLVE AND A NEW ONE TO JELL.” You see, in the decades that followed, Maltz’s work influenced nearly every major “self-help” professional from Zig Ziglar to Brian Tracy to Tony Robbins. And as more people recited Maltz’s story — like a very long game of Telephone- people began to forget that he said “a minimum of about 21

1 Even though the study only ran for 12 weeks, the researchers were able to use the data to estimate the longer timelines (like 254 days) to form habits. Again, the exact time depends on a variety of factors and isn’t nearly as important as the overall message: habits can take a long time to form.

66

Entrepreneur

APRIL 2014

days” and shortened it to, “It takes 21 days to form a new habit.” And that’s how society started spreading the common myth that it takes 21 days to form a new habit (or 30 days or some other magic number). It’s remarkable how often these timelines are quoted as statistical facts. Dangerous lesson: If enough people say something enough times, then everyone else starts to believe it.

It makes sense why the “21 Days” myth would spread. It’s easy to understand. The timeframe is short enough to be inspiring, but long enough to be believable. And who wouldn’t like the idea of changing your life in just three weeks? But the problem is that Maltz was simply observing what was going on around him and wasn’t making a statement of fact. Furthermore, he made sure to say that this was the minimum amount of time needed to adapt to a new change.

So what’s the real answer? How long does it actually take to form a new habit? Is there any science to back this up? And what does all of this mean for you and me? Phillippa Lally is a health psychology researcher at University College London. In a study published in the European Journal of Social Psychology, Lally and her research team decided to figure out just how long it actually takes

to form a habit. The study examined the habits of 96 people over a 12-week period. Each person chose one new habit for the 12 weeks and reported each day on whether or not they did the behavior and how automatic the behavior felt.

Some people chose simple habits like “drinking a bottle of water with lunch.”

Others chose more difficult tasks like “running for 15 minutes before dinner.”

At the end of the 12 weeks, the researchers analyzed the data to determine how long it took each person to go from starting a new behavior to automatically doing it. The answer? On average, it takes more than two months before a new behavior becomes automatic- 66 days to be exact. And how long it takes a new habit to form can vary widely depending on the behavior, the person, and the circumstances. In Lally’s study, it took anywhere from 18 days to 254 days for people to form a new habit. 1 In other words, if you want to set your expectations appropriately, the truth is that it will probably take you anywhere from two months to eight months to build a new behavior into your life- not 21 days.

Interestingly, the researchers also found that “missing one opportunity to perform the behavior did not materially affect the habit formation process.”

21

James Clear writes at JamesClear.com, where he uses behavior science to share ideas for mastering your habits, improving your health, and increasing your creativity. To get useful ideas on improving your mental and physical performance, join his free newsletter JamesClear.com/newsletter, to have James speak at your entrepreneurial event contact him jamesclear.com/contact

In other words, it doesn’t matter if you mess up every now and then. Building better habits is not an all-or-nothing process. Before you let this dishearten you, let’s talk about three reasons why this research is actually inspiring.

First, there is no reason to get down on yourself if you try something for a few weeks and it doesn’t become a habit. It’s supposed to take longer than that! There is no need to judge yourself if you can’t master a behavior in 21 short days. Learn to love your 10 Years of Silence. Embrace the long, slow walk to greatness and focus on putting in your reps. Second, you don’t have to be perfect. Making a mistake once or twice has no measurable impact on your long-term habits.

This is why you should treat failure like a scientist, give yourself permission to make mistakes, and develop strategies for getting back on track quickly. And third, embracing longer timelines can help us realize that habits are a process and not an event. All of the “21 Days” hype can make it really easy to think, “Oh, I’ll just do this and it’ll be done.” But habits never work that way. You have to embrace the process. You have to commit to the system.

Understanding this from the beginning makes it easier to manage your expectations and commit to making small, incremental improvements- rather than pressuring yourself into thinking that you have to do it all at once.

At the end of the day, how long it takes to form a particular habit doesn’t really matter that much. Whether it takes 50 days or 500 days, you have to put in the work either way. The only way to get to Day 500 is to start with Day 1. So forget about the number and focus on doing the work.

A version of this article was first published on JamesClear.com APRIL 2014

Entrepreneur

67

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

They’re gifted UAE startup duo in the present moment

D

ubai-based entrepreneurs Abed Bibi and Husain Makiya aren’t new to the digi-scene, both of the partners behind YouGotAGift.com (YGAG) have a background in web mediums.

The co-founders are both partners at Honeybee Tech Ventures (HBT Ventures)- little or no introduction needed there- so launching a startup is basically second nature to the established duo.

68

Entrepreneur

APRIL 2014

In terms of categorizing their business, Bibi acknowledges that while their startup status is clear, they “obviously have the [means] to move fast because of our 30 years of combined experience in the region from brands like Zawya and Wolff Olins.” As a former partner and co-founder at Wolff Olins, Bibi was focused on “corporate branding development, integrated marketing strategy, entrepreneurial thinking within a corporate world,

and work experience from idea to concept to incubation.” Makiya, having co-founded and managed pervasive platform Zawya for a decade before selling to Thomson Reuters, is currently directing startups on success strategies at HBT Ventures.

What about the status of their own startup? Bibi says that “like any startup in their markets we are looking for three to five years for business to mature. The growth trajectory we

| ONLINE ‘TREP |

have embarked on is quite encouraging and we’re constantly evolving to deliver the best.” For YGAG, Bibi says that startup funding wasn’t an issue, as both he and Makiya had significant background in the seed capital arena.

“The initial capital was seeded by HoneyBee Tech Ventures- a technology incubator directed by me, Husain Makiya and two other co-founders from Zawya. Once the idea was crystalized, we had the two angel investors join in. The wealth of experience we bring to the table made it easier to raise the capital.”

“Like any startup in their markets we are looking for three to five years for business to mature.

The growth trajectory we have embarked on is quite encouraging and we’re constantly evolving to deliver the best.”

When discussing challenges, these ‘treps didn’t have the typical merrygo-round for funding, but they did struggle to “educate the market that this is a cool, fun, and acceptable way to send a gift card to your loved ones.

We know it’s challenging to change the culture, but as we speak more and more people are using it, feeling the convenience and the instant

[ease], as well as the fun experience.” In terms of user-engagement and cultural mindset, Bibi says that changing people’s opinions about the “impersonal” nature of gift cards was addressed by the personalization element on YGAG. “We made sure to create all the elements which will make the gift sender and receiver feel the personal touch. The sender of the gift puts an effort into creating, choosing the pattern, writing the personal message, and uploading a photo. We also made sure in return that the receiver can edit the ‘thank you message’ and make it more personalized,” adding that more developments are on the horizon.

Bibi enthusiastically says that their current and expanding user-base will get “hooked to both its convenience and its personalization!”

On the note of the changing e-commerce and m-commerce landscape, the partners have plans to address the rising incidence of smartphone usage with a mobile app in the works. “We currently have a mobile friendly website and are launching a mobile application very soon. About 20% of our customers send gift cards through their mobile devices so we understand that the take up of our mobile app will be fairly encouraging.” Getting bigger

brands to join the online fray was an experience that ranged from very easy to very difficult, according to Bibi. On YGAG, big players like Virgin Megastore, Vox Cinemas, Toys R Us, and even Ski Dubai have jumped in, and Bibi says that it’s a fair enough equation: “Honestly no pain, no gain!

Some were open and some took eight months to convert. Some were very excited and signed within two days after the introductory meeting! We still remember the first meeting we had, and we had one store!” >>>

APRIL 2014

Entrepreneur

69

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

IN BRIEF yougotagift.com TRANSACTIONS “We are using secure payment networks available in the region.

We will soon also accept payments through PayPal as an additional payment method for those who do not want to use credit cards. Overall we believe that e-commerce in the region is growing and as the market matures, people will be more comfortable with use of credit cards online.”

WINDOW OF OPPORTUNITY “I would say that our value proposition for the overseas gifters is both our biggest opportunity and challenge. YouGotaGift is a truly global business making it possible for people around the world to send gifts to UAE in a fast and easy way.”

BRAINWAVE “The idea came from the time when my friend was due to attend a birthday where the birthday girl had requested a mall gift card. It was a busy day and he didn’t want to go and drive to the mall to buy the gift card. In another instance a friend of mine got married in Lebanon and we wanted to create a wedding registry for her, we then thought we should create the gift card mall for individual gifting, group gifting and wedding registries– bringing together all experiences in one place.”

70

Entrepreneur

APRIL 2014

EXPANSION PLANS “We are in the process of expanding to Saudi Arabia, Qatar and Lebanon. We’ll be announcing our partner stores soon! I am sure our users will be very happy. Lebanon will definitely be a great experience from two different angles, the first is converting the stores, and the second factor is that more Lebanese are living outside Lebanon than the Lebanese who are living in Lebanon, so the advice to the retailers is to jump in quickly. This will create new sales channels, especially that the Lebanese are known for sending money and gifts to their families and friends in Lebanon.”

dents. Each gifter can chip in the amount he or she can afford, and also can write a nice message, it is also quite easy to use.”

OPTIONS “We have more services than the individual gifting. Group gifting is about creating a group gift card from a group of friends, colleagues, family, or a group gift for a teacher by group of stu-

LOGISTICS “The choices of delivery are multiple, and we made sure to satisfy every user by creating different ways including SMS, email, Facebook or the gifter may print and hand deliver the gift card.”

CORPORATE SOLUTIONS “Companies often reward their staff by giving them gifts at the end of the year or after a promotion. Now we have digitized the experience for corporations, we created a platform through which they can send gift cards to their staff from their desks. It’s also about convenience and saving time for the companies, in addition to that is giving the choice for the staff to buy what they like or want.”

APRIL 2014

Entrepreneur

71

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

Online brand alienation How to piss off the online community in 10 simple steps

By Mohammad Hijazi

T

he online community is an important part of a brand’s public relations strategy. It can make a huge difference for your brand resulting in more profit or loss, and in some cases even bankruptcy. That is why it’s crucial to handle these relationships very delicately.

In general, this community is mostly made up of 16-30 year-olds who are extremely tech savvy and connected round the clock. As a brand, you should be extra careful about navigating this demographic, and here are the 10 things that you need to avoid.

1. DISCRIMINATION

We all know that discrimination is something that we want to avoid, but when it comes to social media, it is even worse because it’s public and you will get a lot of heat. This includes the different forms of discrimination including ageism, disability or so forth.

2. FALSE NEWS

Fact-checking and research are the key words here. On the internet, news travels fast, even if it is untrue.

Eventually, someone will fact check and prove that you were using false information to get clicks or interactions. You will take a massive hit especially if you are supposed to be credible in your field.

3. AMATEURISM

Social media is not an intern’s toy or a random employee’s lunchtime hobby, but some brands and agencies still do not get it. Being perceived as a social media amateur implies that your brand is also amateur.

4. GRAMMAR MISTAKES

The internet is full of grammar Nazis. Even if you are the biggest brand in the world, they will still put you down for a spelling or grammar mistake.

That is why you need to double-check before you post, turn spell-check (not autocorrect) on, and learn the language that you are speaking. If you use a “lingo” just to seem cooler without 72

Entrepreneur

APRIL 2014

knowing it well, I suggest that you hire a translator or switch to a language that you are proficient in. Many regional celebs fall for this, and they are perceived as ignorant wannabes.

5. PROVOCATIVE POSTS

I don’t know what goes on in people’s minds when they use shocking unrelated photos to promote their brand. Don’t they know it’s a big no-no? Or do they just assume that it will get them more clicks? I don’t know about you, but for me, the expected reaction is criticism and hate.

6. NOT DOING YOUR RESEARCH

A community manager should think and research before he or she tweets. Knowing your audience is key, and sometimes it just requires one click. Read bios before you respond to engaged users, and yes, that includes positive commentators too.

7. RESPONDING APPROPRIATELY

My friend Darine Sabbagh always says that “if you screw up online, you should embrace it. Chances are by fixing a mistake correctly, your campaign might be more successful than if you had no mistakes at all.” Responding to complaints and promising better service will get the people to come back to your store/shop again. When a member of the online community criticizes your brand or comments negatively,

do not by any means retaliate with a negative response. You always have to handle the situation gracefully and graciously.

Do not threaten to sue. Do not use the tired attitude that “any publicity is good publicity” because on social media, you will look like an arrogant idiot. Do not even claim that it was all a stunt to get more attention. No one will ever forget that, and it is not a good thing.

8. DECEPTIVE BEHAVIORS

The members of the online community are not stupid. They will easily catch your deception and expose you. Do not try to lie to them, for your own good.

a. TARGETING The advertiser admits that their fans come from all Arab countries and a wide range of others. This is the equivalent of advertising your product in Sudan when it’s only available it Kuala Lumpur or advertising for acne cream in a children’s magazine.

BEING PERCEIVED AS A SOCIAL MEDIA AMATEUR IMPLIES THAT YOUR BRAND IS ALSO AMATEUR.

9. AUTOMATION

If you want to do something nice for the online community, it has to come from your heart and not from a robot. You have to personalize your interactions and be passionate about your audience (or at least try and fake it).

10. PURCHASING FAKE FOLLOWERS

If you know anything about marketing, you would know that purchasing bulk followers does not get you anywhere, for the following reasons: • These users approach uniformed or uneducated page owners to take advantage of them.

• These “companies” work by hiring a bunch of underpaid people in China, India or Egypt and stuff them in an overcrowded room to create fake Facebook accounts with randomized names and their only job is to like “client” pages.

• Even if it is as this advertiser claims -that you pay advertising on their other pages- there are many things wrong with this “ideology”.

b. TRACKING The adviser

admits herself that they stop the “campaign” when the number of requested likes are reached.

What if the majority of the likes are due to actual fans liking the page or people searching for the page or a like box on an external website or any other source?

Basically, you are paying for a lump sum of likes that may not even be due to this advertiser’s services. c. COMMON SENSE People know that you actually bought these followers. For one, they will not interact with your page whatsoever, will not build your online equity or even boost your sales. There’s even tools for that. d. FUTURE PLANNING Even if

you decide later on to properly advertise using Facebook advertising, especially if you are using features such as sponsored stories, sponsored posts, and promoted posts, it will be an extreme mess. You will be paying for fans that you don’t want on your page. e. UNLIKING If, as this advertiser

claims, the fans are actual people, what would stop them from

Mohammad Hijazi runs the Online Collaborative, an NGO that aims to promote awareness about technology and social media, and is the organizing entity of the Beirut Social Media Awards set to launch in several GCC countries this year.

In addition, he is the Editor in Chief of Cloud961, a print and online magazine dedicated to the online community that addresses digital and social media topics from the MENA region. Hijazi also executes marketing consultancy and digital media strategy with some of the Middle East’s top agencies and institutions. A graduate of American University of Beirut (AUB) with degrees in biology and marketing communications, Hijazi is a blogger at Mind Soup, and an instructor on computer literacy, social media techniques, and social networking for senior citizens as well as corporate digital marketing courses. Talk to him on Twitter @mhijazi

unliking your page after a while when they find out that your content in not relevant to them? f. ACHILLES HEEL If that’s not enough, this will make you appear as cheap and desperate to actual fans and to marketing critics (like me) and it will cause a negative impact on your brand equity and company image.

Keep your engagement online “engaging”. If you don’t want to hear it, chances are no one else does either. Your brand’s reputation rests on your social media strategy, and if you aren’t willing to do it right, then you’re going to be working on a lot of damage control. Think before you tweet!

APRIL 2014

Entrepreneur

73

start it up

Wacky idea | who’s got VC | Q&A | STARTUP FINANCE

Ramzi Rizk

STARTUP CATERS TO SHUTTERBUGS WITH APPS & PORTAL RAMZI RIZK SEES THE BIGGER PICTURE

By Kareem Chehayeb

T

he arts scene has a new chance to thrive: The rise of crowdfunding platforms has inspired a large amount of people involved in the arts to go DIY in terms of commercial viability routes. We’ve seen this happen with musicians, but we haven’t seen many resources photographers can use not just to network with their contemporaries, but also to sell their work. That’s where

74

Entrepreneur

APRIL 2014

Ramzi Rizk, founder of Germany-based app EyeEm comes in. Rizk moved to Hamburg, Germany on his 21st birthday after earning a Bachelor’s degree in Computer Science from Lebanese American University (LAU). He completed an M.Sc in Information and Media Technologies in 2006 and enrolled in a PhD program at the Institute of Information Systems at Humboldt University in Berlin, but then

decided to take “the plunge” and left the program to start EyeEm. What exactly is it? “EyeEm is the world’s premier community and marketplace for the photographer inside all of us,” says Rizk, “We have a lovely, creative community made up of a new generation of photographers who take real, authentic photos, learn from their peers, and earn money by selling those photos.” Unlike

numerous platforms that don’t entitle users full protection of their intellectual properly, Rizk takes pride that photographers using EyeEm “own the rights to all of their photos completely.” Rizk explains that he and his cofounders “were drawn by the passion we shared for photography, and fascinated by the technological possibilities that mobile devices offered.

We saw a connected world where a photo was instantaneous, multi-dimensional, and in context.” In addition to EyeEm’s web portal, users can download apps on their iOS and Android devices.

After receiving “some initial seed funding from Christophe Maire,” who, according to Rizk, has been a “great advisor and mentor to us as a team, and to me personally for several years,” EyeEm looked to Passion Capital and Wellington Partners, which Rami Rizk calls “great” VC funds in Europe. Recently, while including their previous angel inves-

“WE HAVE A LOVELY, CREATIVE COMMUNITY MADE UP OF A NEW GENERATION OF PHOTOGRAPHERS WHO TAKE REAL, AUTHENTIC PHOTOS, LEARN FROM THEIR PEERS, AND EARN MONEY BY SELLING THOSE PHOTOS.”

tors, EyeEm also worked with Earlybird Venture Capital. Despite the abundance of angel investors, this startup has a policy of yielding results through minimal costs. “We learned how to make a little money go a long way early on, and have stuck to that since” says Rizk. Most of the costs come from EyeEm’s team of 35 employees, along with “some costs for infrastructure”.

That said, Rizk and co. have a new platform to generate some funds: EyeEM Market. Founder Ramzi Rizk sees this as a step towards becoming self-sufficient, and describes launching an online market for the EyeEm community as “a symbiotic, mutually beneficial way of growing our community and becoming profitable all in one.” Like many platforms that artists in many disciplines use to sell and promote their work, EyeEm takes a hefty 50% commission from each photo that is sold. Despite that, with EyeEm’s massive community and the lack of other platforms for photographers, selling your work on EyeEm market can arguably be a springboard for earning more money from visual work in the long run. They’re still working on ensuring that EyeEm Market accepts a wide variety of payment methods to suit both buyers and sellers from across the globe that use EyeEm.

“THERE IS A GROWING COMMUNITY OF MIDDLE EASTERN PHOTOGRAPHERS THAT ARE ON EYEEM, AND THAT SHARE THEIR AMAZING TAKES ON LIFE IN THE REGION.”

In terms of their international user-base and offline events, it’s quite impressive for a company with only 35 employees. The interaction on their social media platforms is interesting, used by EyeEM as a tool to organize photography competitions and even international meet-ups. Rizk told us that while these were ideas they were initially testing, they yielded positive results- a few risks here and there can help your business.

“2010 was a year of experiments, we launched the world’s first mobile photography competition and exhibition,” he explained, “the show took place in the summer of 2010 in Berlin. It was more successful than we could have imagined.”

EyeEm then had a follow-up event in New York City, and even an EyeEm meet-up in Japan.

So what’s next? “We’re far from done.

Our company is fueled by some awesome technology that we’ve just started to tell people about,” adding that a new product is on the horizon. Rizk told us that EyeEm’s largest markets do not include the Middle East, but “there is a growing community of Middle Eastern photographers that are on EyeEm, and that share their amazing takes on life in the region.”

Rizk spoke at the ArabNet Conference in March and was “pleasantly surprised”, admitting that “until then, I hadn’t really had the chance to interact with the tech entrepreneurial ecosystem” in the region.

Honestly, [it] reminded me of Berlin’s ecosystem a few years ago, we’re also a nascent hub here, and went through the same growing pains that the Lebanese ecosystem is going through.”

‘Treps, that’s your daily dose of motivation and encouragement right there.

APRIL 2014

Entrepreneur

75

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

You scratch my back & I’ll scratch yours

WePul hopes to create a more connected UAE barter community

By Kareem Chehayeb

E

ver wondered where you could learn how to play the accordion or get a lesson on how prepare a sashimi dinner? It seems that we’re starting to develop interests in many skills that we aren’t able to discover in our own backyards (thank you, internet… I guess). There might be a solution to all of this, and it just might take being in a city with a culturally diverse population like, I don’t know, Dubai?

WePul was founded by two Dubaibased expats: 29 year-old FrenchGerman software engineer Seb Ritter and 32 year-old British designer Mark James, who both currently work at Dubizzle. Both were in situations where they wanted to learn and benefit from a new skill, and they could also offer their

76

Entrepreneur

APRIL 2014

own skills in return. Ritter left his job in London and opted to start a business of his own, although as most ‘treps can attest, it isn’t all that easy. “Since, as a startup, one isn’t usually blessed with resources,” Ritter turned his attention to asking favors of ex-colleagues who were in a similar situation, adding that he helped with his strengths and received help from people with skills that he lacked.

Co-founder James was inspired through experiences both in his personal and professional life. “Owning a glamping company that facilitates comfortable

Wepul founders Seb Ritter and Mark James

camping for Formula 1 fans around Europe, [I] needed help locating a campsite for a new venue.” They said that Mark didn’t need an expert, but just someone who spoke the language and knew their way around, and said that finding that

WEPUL ILLUSTRATIONS WEPUL.COM

person was “like a needle in a haystack.”

That’s how WePul was born, and setting up and operating the online social platform launched WePul with software engineers, Joao Cunha and Dushyant Rijhwani.

WePul’s founders shelled out just US$1000 to get things going, but their “initial spend was only about $100.”

When asked about the setbacks they faced starting WePul, they are in agreement with tons of budding ‘treps: There was a “struggle to balance normal work life with the time needed to get the project off the ground.” The founders also were had some difficulties testing out “assumptions and theories.” No angel investors were needed, and overall, Mark and Seb had a blast designing WePul and getting it off the ground“The actual product design was a lot fun, combining all our thoughts and ideas into one incredibly simple inter-

face.” In fact, they enjoyed the process so much that they had to resist temptation and kept “the more outlandish ideas in check.”

For a community-building social platform, how does WePul fit social media into the mix? “In truth, we haven’t really utilized the marketing potential of other social media platforms,” the founders admitted. That said, both have a favorite social media platform that they’re hoping to use for growth and expansion of WePul. Mark loves Twitter; he sees it as a “constant source of free marketing and connection potential,” while Seb is a fan of Facebook and found it a great way to spread the word about WePul. “The use of our fan page to promote interesting skills and favors along with clever Facebook marketing strategies have allowed us to build brand awareness and promote our slightly quirky personality.”

WePul seems to be something that can strengthen the build of any community, but are the conditions of Dubai ideal to allow such a platform to blossom? They think so. In fact, they see Dubai as just the beginning for WePul. “The GCC and its multiple cultural and ethnic diversity is a perfect place for WePul. With such a diversity of skills, some significant gaps between

“With such a diversity of skills, some significant gaps between the ‘haves’ and the ‘have-nots’, we see WePul having huge potential.” the ‘haves’ and the ‘have-nots’, we see WePul having huge potential.” With all the early success the platform been experiencing, both Mark and Seb admit that it does have its limitations. “There are two constant hurdles we try to overcome. One is the fact that in order for the product to be truly effective, it requires mass adoption. Only when we have a huge community on the site will we be able to help solve everyone’s problems.” The other issue seems to be something that can improve over time, which is what the founders call a “reeducation of our audience. What we’re trying to do is so new, so unusual, and so groundbreaking, it can be difficult people to understand how the process works and what incredible benefits they can draw from it.” >>>

SOUND MACHINE

Emaar reveals Dubai Opera plans The merging of the city’s vibrant arts initiatives seems to have culminated in the plans for Dubai Opera, a new cultural destination. Adding to the arts and culture district at Downtown Dubai, home to the city’s icons such as Burj Khalifa and Pavilion Downtown, Emaar is introducing the Opera District, meant to enrich the cultural landscape of the UAE. Developed for opera, theatre, concerts, art exhibitions, orchestra, film, sport events, and seasonal programs, the multi-purpose venue will have a seated capacity of 2000. Styled on the traditional sailing vessels of the Arabian Gulf, the new structure has both “bow” and “hull” segments to serve separate purposes for both aesthetics and logistics. As yet, no date has been announced for the opening of the opera house.

APRIL 2014

Entrepreneur

77

TECH

SHINY | WEBSITE TO WATCH | GEEK | MOBILE TECH | ONLINE ‘TREP | THE FIX

Video still | wepul.com

That said though, WePul’s already making waves in Dubai, and the founders shared a couple of their favorite success stories. “We’ve had this young Brazilian guy who met a friend on WePul through a mutual love of Latin Salsa.

They’ve gone on to become quite a formidable dance duo.” The founders also talked about how WePul helped pave the way to help an aspiring DJ’s dream come

true. “A young chap who had an ambition of playing at a very famous club in Ibiza by the time he’s 40, by utilizing the contacts of the entire WePul community, he’s now well on his way to achieving his life’s dream.”

So what’s next for WePul? The founders plan on launching tablet and mobile apps “subject to having the time and finances to produce it.” Mark and Seb have also dedicated time to evaluate and reflect on their demonstrated successes to start moving forward to further improve what they’ve started. “As we get closer and closer to our why, we seem to be settling on empowering people across

the planet to better their lives through experiences and collaboration. All efforts will be spent on ensuring WePul does this to the best of its abilities.” Ambitious? Absolutely.

Have the co-founders themselves used WePul to barter a new skill? “Yes, both of us have been lucky enough to learn some basic martial arts in exchange for a bit of design work.” Crowdsourcing at its finest.

LUCKY NUMBER SEVEN Double-dippers are going to like the new Fonepad By Tamara Clarke | SHINY |

The new phablet by Asus –for the unanointed that’s a mobile device that combines the functions of a smartphone and a tablet- Fonepad 7 features built-in 3G connectivity for calls and cellular data. Two notable qualities? DualSIM capability (you can manage two phone numbers from a single device), and high quality audio due to the addition of SonicMaster speakers that promise an enhanced user experience. This hybrid device also packs a punch with specs that you’d expect to find in a tablet: 7-inch HD IPS display and an Intel Atom 1.2 GHz Processor for lightning-fast web and app loading. Snap pictures for social network sharing using either the 5 megapixel rear camera or the 1.2 megapixel front-facing camera. The general consensus seems to be four out of five stars by most global reviews with a lot of tech-lovers jumping on the phablet bandwagon. We see the reasoning behind the early-adoption of the trend: It’s basically more bang for your buck.

78

Entrepreneur

APRIL 2014

APRIL 2014

Entrepreneur

79

start it up

Wacky idea | who’s got VC | Q&A | STARTUP FINANCE

The Arab Women Pioneers Challenge Zoomaal & Hivos want to help you fund your project

F

emale Arab entrepreneurs, this is your chance to win some much needed startup capital!

As a follow up to the Hivos Creativity Challenge staged in late fall of last year, another partnership between Zoomaal and Hivos to support “creativity in the Arab world” has been commenced.

The first partnership between Zoomaal and Hivos, held between October and November 2013, “was a great success that attracted hundreds of projects applications. We had two winners that won the US$10,000 amount,” says Dib Semaan, Operations Manager at Zoomaal. You can submit your project for consideration on Zoomaal’s crowdsourcing platform for the Arab Women Pioneers Challenge (AWPC) until April 15,, 2014 for the chance to be allotted up to $20,000 of project prize funds.

HOW DID THE AWPC COME ABOUT?

The AWPC is an initiative by Zoomaal and Hivos that aims to support Arab women pioneers in an aim to recognize their leading role in the society. Any woman in the Arab region can apply and submit her project and/or idea on Zoomaal’s platform with the chance to receive up to $20,000. The idea originated from the basic issue facing Arab women entrepreneurs when wanting

“ARAB WOMEN CAN SUCCEED BRILLIANTLY IF THEY HAVE THE REQUIRED TOOLS, FOR EXAMPLE ORGANIZATIONAL SKILLS, BUSINESS MANAGEMENT, AND MOST OF ALL THE FINANCIAL SUPPORT WHICH WE ARE OFFERING AT ZOOMAAL” 80

Entrepreneur

APRIL 2014

access to funds that can help them in fulfilling their idea or project- a project that can help them be self-sufficient, a support to their communities and role models to future women generations. Hivos is an international development organization that found interest in Zoomaal’s main mission which is bringing back Arab creativity through crowdfunding with its main focus on the Arab World. Based on that, Hivos decided to support projects on Zoomaal- projects that are generated from the Arab world that depicts and tackles issues that Arab men and women are facing.

This challenge is an open call to all Arab women, it’s your chance to create something new or recreate something old. This is your time to make your project happen.

THE FUNDS GRANTED TO THE WINNERS ARE SUBSTANTIAL- THEY CAN GO UP TO $20,000, ARE THERE STIPULATIONS AS TO HOW THEY HAVE TO SPEND THEIR RAISED FUNDS?

Zoomaal doesn’t have stipulations on how the raised funds would be spent as long as the money would be spent solely on the project development, and that the project fits

Zoomaal’s and the challenge guidelines.

Every project on Zoomaal has to mention in their project description how the money will be allocated and how it

would be spent. This transparency that we insist on makes contributors more at ease to contribute to the project, and would be a basic business plan for project owners that can help them think of their expenses and what they would be getting in return.

CAN YOU DISCUSS SOME OF THE APPLICANTS THAT HAVE ENTERED THE AWPC SO FAR?

We have received more than 40 applicants during the first week of the challenge project submission periodthis can only show the true need of Arab women to express themselves and to be able to financially sustainable toward creating businesses that would make them a more efficient member in their communities. The projects that we are receiving are coming from Tunisia, Algeria, Morocco, Yemen, United Arab Emirates, Egypt, Jordan, Palestine, and Lebanon. They cover several categories like writing and poetry, community, fashion, education, and arts.

“WE HAVE RECEIVED MORE THAN 40 APPLICANTS DURING THE FIRST WEEK OF THE CHALLENGE PROJECT SUBMISSION PERIOD”

IN YOUR OPINION, IS IT LIKELY THAT ARAB WOMEN CAN SUCCEED WITH THEIR STARTUPS IN THE MIDDLE EAST?

I think Arab Women are eager to show their skills and entrepreneurial capacity in male-dominated communities, this hunger toward succeeding can be a powerful tool. Arab women can succeed brilliantly if they have the required tools, for example organizational skills, business management, and most of all the financial support which we are offering at Zoomaal exclusively to women entrepreneurs through the AWPC to come up with an idea and translate into a sustainable business.

Arab women entrepreneur from Saudi Arabia. Diana tackled two issues in her community that represents two major concerns to her personally. Diana’s idea is to create trendy and “must-have” lifestyle products made by women of disadvantaged backgrounds. “Trochet” has all the makings of a great project: Providing a solution to problems based on Diana’s community that people can relate to. The design element that creates appeal, and job creation for disadvantaged women.

WHAT HAS BEEN YOUR FAVORITE ZOOMAAL CROWDFUNDING TO DATE BY AN ARAB WOMAN?

One of my favorite projects is “Trochet: Reshape Plastic Bags creatively” created

by Diana Rayan, an

DIRECT RELATIONSHIP UAE’s Women Mean Business As the number of businesses continue to grow in the UAE, so does the number of women in upper management. A recent study carried out by non-profit organization Pearl Initiative in collaboration with the United Nations, indicated that 22% of the Middle East’s family businesses in the survey have women represented in their boards. The Pearl Initiative partnered with the Sharjah Business Women Council to create a program that promotes the progression of women into senior and board positions in the GCC. Based in Geneva, this year’s Womanity Foundation event was attended by numerous Arab businesswomen, who discussed the misconceptions of women empowerment in the Middle East, including Chief Sustainability Officer of the Emirates Foundation, Khuloud Hasan Al Nuwais, and Editor of Sky News Arabia, Nivine Afiouni.

APRIL 2014

Entrepreneur

81

start it up

Wacky idea | who’s got VC | Q&A | STARTUP FINANCE

LEADERSHIP TRAINING

SPONSORED BY CADILLAC IN THE SPIRIT OF EDUCATING TOMORROW’S ENTREPRENEURIAL TALENTS

THE HOUSE THAT JACK BUILT Spending startup cash

Contracts signed, money is in the bank, let’s do this! By Simon Hudson 82

Entrepreneur

APRIL 2014

I

n my previous article we looked at how much you should raise and what value would be given to your idea. For all you entrepreneurs looking to raise that initial seed capital, in short a good prototype, simple business plan, and a solid team are -in my view- what’s needed to help raise your capital.

So, let’s fast forward to the early days just after your initial raise. You did it! The term sheets have been agreed, contracts signed, BUILDING BLOCKS and the money Once the adrenalin dies down and you start to remember what sleep feels is in the bank. like again, it’s time to get down to It’s a factbusiness. I can only comment on how I felt just after raising my funding, but you are now I would describe it like my first day officially an at a new school with my final exams entrepreneur! in the afternoon. All the planning and

discussions of what will happen “once we raise the money” are now real- that first day finally arrived. The funny part about these feelings are that, if you already have your prototype and small team, it doesn’t change much. This is why going back to the previous articlethe prototype stage and team members are so important.

For me and Brndstr, we were well prepared and setup. All our domains had been secured, emails setup and alpha versions finished. We also had our draft designs and branding for all logos and corporate material- it just needed polishing and finalizing. These were actually the first tasks I tackled. My view was once we had a confirmed look and feel of the business, the more we saw it and mentioned it, the quicker it would become real. For anyone who hasn’t experienced it before- calling up someone and saying you’re from a company name that you and your team created is kind of wild, especially when you’ve left out the vowels: “Hi, its Simon from BRNDSTR.” #Epic. In my

opinion this was a great boost for the team and also helped bring it all to life, but don’t spend a lot of time and money at this stage. It’s the fun part, but remember you have a company now and there are other jobs to do. If you haven’t yet tried it, a great start would be to check out 99designs. com. Next, formation of the company and legalizing everything. You should have already recruited a lawyer to draft your term sheets and contracts, if not then make this your first task.

Everyone I have spoken to has their own opinion of where and how to structure the formation of your company. My advice is do your own research and feel comfortable in what you decide. It’s very similar to building a house- the plot of land, location, size and cost is the most important part of the project. The same applies for your company; take advice outside of your founders and

spend time making the right choice.

Once decided, get the wheels in motion but don’t let it consume you and your resources, because there’s a lot more to do.

LAYING THE FOUNDATION NewCo. LLC is now setup, now what?

Hold up! Let’s rewind. This sounds like a very straightforward and quick process, but it’s not as easy as you may think. Depending on where and how you structure the business, it can take a long time. A key bit of advice is to see this setup as one of your three juggling balls. You’ll need to keep an eye on it and guide it in the right direction, but there are other elements that also need your attention.

One of your biggest reasons for raising seed capital is to recruit new members of the team and develop what you have on paper or the prod-

uct at prototype stage. Anyone will tell you that good, talented people are hard to find. I know it may be exciting and that you’ll be keen to start developing, but make sure you bring the right people onboard.

These people are vital to the success of your business during the startup stage. I found that choosing the right software to help power your business from day one is great plus. Tools such as Asana, Basecamp, HipChat, and Pivotal Tracker are just a few. Setting these standards from the outset will benefit you later.

As I have mentioned before, I can only comment on what I have personally experienced and specifically in the arena of a tech startup. What I do believe though is that if you follow a few key basics you are well positioned to succeed. I have learned that there is no rule book, but taking advice and listening to people’s experiences helps 100%- ultimately you are now the decision maker so the buck stops with you.

Over to you fellow ‘treps- good luck in your formation and once again congratulations on the funding. Let’s do this!

Simon Hudson is the CEO and Founder of Brndstr.com.

Having recently closed a large funding round, Hudson is well versed with the challenges ahead of any startup.

Prior to becoming an entrepreneur, Hudson worked as Marketing Director for Trump Towers in Miami and more recently as a senior figure at Groupon Middle East. Over the past two years he has been busy helping to grow, build and develop the Dubai startup circuit. As the Founder of ThinkTank.ae, ex-Chapter Director for Startupgrind.com, moderator of the previous Young Arab Leader event, and a coach at this year’s Dubai Startup Weekend, in addition to contributing the monthly entrepreneur column for newspaper 7days UAE, Hudson is well positioned to offer help and advice to any budding entrepreneur.

APRIL 2014

Entrepreneur

83

money

ask the money guy | vc viewpoint | startup financE | your money

AS GOOD AS Emirates Islamic follows GOLD the yellow brick road

When was the last time you thought about going for the gold? If you’re hanging on to gold reserves, then you’re in luck since the market is doing well. If you haven’t thought about putting your money into the precious metal, then it’s time to do your research since you’re a bit behind. >>>

84

Entrepreneur

APRIL 2014

For those of you not in the loop when it comes to gold, a Good Delivery gold bar adheres to the specifications set by the London Bullion Market Association (LBMA). The LBMA Good Delivery bars are traded internationally by central banks, held in government stores and the like. The stringent requirements of Good Delivery bars make them a reputable

EMIRATES ISLAMIC HAS INCLUDED DEPOSITORS IN THE PROGRAM, ALLOWING CUSTOMERS TO REDEEM THEIR GOLD BARS WHENEVER THEY WANT. industry hallmark. Perhaps in light of the good gold market, a UAE Islamic financial institution, Emirates Islamic, is re-launching its Gold Certificate program, providing what they hope will be a more convenient way for customers to safely invest in gold bars. Customers can buy gold bars at live prices that are connected to international markets, and Emirates Islamic has included depositors in the program, allowing customers to redeem their gold bars whenever they want. Gold bars are available

THE GOLD STANDARD FACT FILE WORLD GOLD COUNCIL

EAST OF EDEN Investment demand has risen significantly in several countries in East Asia, with Thailand and Indonesia experiencing record highs. In addition to the two countries mentioned, Vietnam and South Korea also experienced strong growth.

All four markets’ consumer behavior was a reaction to reduced prices that led to opportunistic purchases. Japan’s market is worth mentioning too- it experienced a net positive investment demand for three consecutive quarters, after seven years of negative net investment. Europe only

China set a new record for jewellery, bar and coin demand of 1,065.8 tonnes, consumers responded to lower gold prices.

saw an increase in investment demand in Germany, mostly due to “gift-giving motivations”, according to the report.

RUN ON THE BANK Central Banks bought 368.6t of gold, and according to the WGC, this is a positive sign despite the fact that it’s 32% lower than 2012, given that 2012 had the highest level of demand in over 50 years.

The current results are also in line with the WGC’s forecasts. Central banks have experienced net positive demand for three years (12 consecutive quarters).

TECH TIME Lower gold prices resulted in the technology sector’s stability of gold usage, with 404.8t used in 2013 and 407.5 in 2012. The decline of gold production means that the gains from increased demand will be balanced out. Demand for gold in “other industrial and decorative” uses improved by a small margin last year.

As the gold price dropped, Asian markets offset European markets; India and China both saw rises in demand for gold, while Europe experienced a decline.

+1,000 tonnes

Bar and coin investment was the highest on record at 1,654.1 tonnes. New records were set in a number of markets.

Jewellery demand for 2013 was back up to almost 2008 (pre-crisis) levels, at 2,209.5 tonnes.

Jewellery demand

INFOGRAPHIC COURTESY WORLD GOLD COUNCIL

CLEOPATRA Q4 of 2013 marked six consecutive quarters of growth for jewelry, with a demand of 553.8t (tonnes)- 12% higher than the five-year quarterly average. This is great news for gold, as this was the largest increase in annual jewelry demand since 1997. This also means that demand has returned to pre-crisis levels. Jewelry in 2013 had a value of 0.14% of global GDP, which is a significantly larger than it was 10 years ago, at 0.08%. Talk about an impressive recovery!

in different sizes- yes, you’ve got options: 100 grams, 500 grams, and even 1 kilogram. But where are you going to safely store all of your newly acquired gold bars? Fear not Richie Rich, Emirates Islamic does that for you, so you don’t have to worry about paying extra costs for keeping your gold safe and sound. This all sounds interesting, but why gold? Well, you’d be surprised; according to the World Gold Council (WGC) 2013 Gold Demands Trend Report, demand for gold is doing better than it ever has since the big economic crisis. Market up!

2008

2013

APRIL 2014

Entrepreneur

85

money

ask the money guy | vc viewpoint | startup financE | your money

Silicon Valley VCs are more confident than they’ve been in years

S

ilicon Valley venture capital investors are as confident as they were before the Great Recession and are looking forward to an active 2014.

The latest reading of the Silicon Valley Venture Capital Confidence Index, released last January of this year came in at 3.94 on a 5-point scale.

That’s the highest level of confidence since the third quarter of 2007, just before the economic downturn.

86

Entrepreneur

APRIL 2014

By Catherine Clifford

The index, which has been produced quarterly for the last decade, was based on a survey of 32 venture capitalists in the San Francisco area.

Confidence levels have been trending higher for the past year and a half. “The steady rise in confidence

suggests that a stabilizing macro environment is providing a firmer foundation for positive momentum in venture investing in 2014,” writes Mark Cannice, author of the report and professor with the University of San Francisco School of Management.

“THE STEADY RISE IN CONFIDENCE SUGGESTS THAT A STABILIZING MACRO ENVIRONMENT IS PROVIDING A FIRMER FOUNDATION FOR POSITIVE MOMENTUM IN VENTURE INVESTING IN 2014”

ANOTHER SCORE FOR CROWDFUNDING Indiegogo announced that it secured $40 million in venture capital fundraising, which the crowdfunding platform will use to expand globally and improve the customer experience, primarily in terms of its mobile site. Institutional Venture Partners (IVP) and Kleiner Perkins Caufield & Byers (KPCB) lead the investment round, which was Indiegogo’s second infusion of cash from investors.

San Francisco-based Indiegogo is already in 190 countries, but the platform wants to expand its reach. Currently, Indiegogo’s services are offered in four languages -English, German, French and Spanish- and in five currencies (U.S. dollar, Canadian dollar, euro, pound sterling and the Australian dollar). The crowdfunding platform, which was started by three classmates in 2008, currently has 85 employees running its global operations and boasted a 1000% jump in the amount of money raised on its platform in the past two years.

Indiegogo’s diversity is what is making it attractive to investors. “Indiegogo’s flexible funding model and open platform are helping it become the market leader in the rapidly growing crowdfunding space,” said Jules Maltz, general partner at IVP, in a written statement. “The company is the Android of crowdfunding- easily accessible and open to all.”

The popularity of crowdfund-

ing has been surging in recent years and, thanks to a law passed in 2012, entrepreneurs will soon be able to raise money by selling pieces of their company online to anyone who has the cash and willingness. However, the SEC has been having a hard time writing rules for equity crowdfunding that both protect unprofessional investors and preserve the spontaneity and fluidity that makes crowdfunding appealing.

In particular, Silicon Valley venture capitalists said they are feeling good about increased exit opportunities in the public markets, namely in terms of initial public offerings.

“I sense venture confidence is heightened, with plenty of startup capital available and flowing again,” said Igor Sill of Geneva Venture Management, in a comment, in the report. “And, the IPO market has finally returned. I’m very excited about what 2014 holds in store for venture investors. My only concern is whether there will be enough good deals out there for us to put all this money to work rationally.”

Another venture capitalist echoed this enthusiasm, saying that the recent large tech IPOs are a harbinger of healthy exit activity for smaller tech companies. “Good performing

tech IPOs brighten the prospects for all young tech companies, and I am optimistic that 2014 will be a strong year,” said Sandy Miller of Institutional Venture Partners. “There’s never been a moment in history when there are so many private venturebacked technology companies with real scale and rapid growth.”

Other VCs raised concern that the industry’s confidence is a bit of a red flag. Younger companies ought to be aware of “valuation inflation” and “over investment in ‘hot categories,’” said John Malloy of BlueRun Ventures.

In particular, social media and social commerce are two areas that are in the “risk of overheating,” says Robert Ackerman of Allegis Capital.

If a venture capital market accelerates too much too quickly, then the

market may get ahead of itself and trip itself up. “The success of recent IPOs has also spawned an unusually high level of interest in later stage companies approaching the IPO market, potentially distorting the historic relationship between valuation and business fundamentals. This ‘distortion’ portends a speed bump ahead in segments of the innovation economy,” Ackerman says.

See this article in its entirety at Entrepreneur.com

THE RECENT LARGE TECH IPOS ARE A HARBINGER OF HEALTHY EXIT ACTIVITY FOR SMALLER TECH COMPANIES APRIL 2014

Entrepreneur

87

money

ask the money guy | vc viewpoint | startup financE | your money

Venture capital as the fuel of innovation

T

he role of man has always been to innovate and create.

Since the beginning of time, mankind has progressed because of our ability to invent and adapt. As the tools available to create new things proliferate, they allow us to leverage our creative intellect further and not be bogged down with administrative and logistical tasks.

The exponential rise of technology means innovation will progress faster than our linear minds can fathom.

A large part of the role of venture capital is to fuel innovation and mass adoption. This fuel comes in the form of capital, structure, access and expertise.

88

Entrepreneur

APRIL 2014

By Arya H. Bolurfrushan

There were more significant technological changes in the past 10 years than in the past 100 years, and more in the past 100 years than in the past 1000 years. Today, all of human knowledge is accessible in our pocket through our smartphone. Communication has become pervasive and instantaneous, almost creating a unified human consciousness whose pressing issues emerge in the form of a trending topic on Twitter. This makes it imperative to keep up with international technological progress, especially as it greatly increases our productivity, which is a leading contributor to GDP growth.

According to a report released by the International Data Corporation (IDC), every country in the Middle East is projected to spend millions

more on technology in 2014 than in 2013. Venture capital plays a significant role in fuelling this innovation.

In the Middle East especially, venture capital has proven to be a route that increases the visibility of the region as an innovation hub while at the same time providing new technologies with a place to grow and prosper. IDC also reported that the ICT market will hit the US$96 billion mark in 2014, which indicates incredible investment and optimism in the technology sector. That, coupled with the m-Government initiative and the investments that will inevitably follow the Expo 2020 announcement, makes the technology sector, particularly in Dubai, a vibrant and exciting market for VCs to explore.

To innovate on a global scale you need a relatively level playing field; basically you need the infrastructure to educate, develop, integrate, and roll out ideas. The Middle East is still developing the ecosystem for the virtuous cycle of innovation to take hold but global trends makes this inevitable; it’s just a matter of time.

There is a boom on the horizon for the Middle East, and it is this changing landscape that makes investing in this region so exciting.

A large part of the role of venture capital is to fuel innovation and mass adoption. This fuel comes in the form of capital, structure, access, and expertise. Each of these factors plays a critically important role in aiding start-ups and entrepreneurs– the expertise is just as important as the capital that a VC can provide.

When I first started investing, it was something that I did on my own, as a kind of hobby. I ended up investing in 27 startups. I learned a

The Middle East is still developing the ecosystem for the virtuous cycle of innovation to take hold but global trends makes this inevitable; it’s just a matter of time.

lot about various sectors and regions but more importantly the common pitfalls, the founder’s dilemma and the life of a company after the investing honeymoon period. Now that this interest has pivoted into an institution, it has taken on a whole new meaning. We are investing in the structural building blocks of the technology industry and look at VC as a way to build upon the talent and resources in the region. This includes e-commerce logistics, online payment gateways, effective cloud computing, incubation ecosystems, knowledge sharing platforms and engaging content. It is investments like these that will provide the platform from which the Middle East can grow and thrive as a technological hub as well as an entrepreneurial one, creating the demand for further participation from by venture capitalists.

Having lived in Dubai for over 28 years, I have seen first-hand the transformation a structured vision accompanied by resources can achieve. The talent and ideas from a diverse range of entrepreneurs that abound the Middle East has only made me, and I’m sure many others, that much more resolute about investing in this region. All the quantitative and qualitative metrics demonstrate a region and sector that is ready to outperform.

I believe in this region, and in its innovation potential. The Middle East, and the UAE in particular, is in the second inning of mini technology boom, and we expect this to continue as locally based companies continue to bring their new ideas to life.

Hopefully, we can help.

Arya H. Bolurfrushan is the youngest CFO of a public oil company in the Middle East, CEO of the Bolurfrushan International Group and co-founder of Emerge Ventures. Bolurfrushan was previously at Goldman Sachs’s internal think tank in New York, the Investment Strategy Group. He worked with the firm’s largest institutional and private clients, produced industry leading research on private equity, venture capital, hedge fund and commodity returns and helped create the patent pending Goldman Sachs Private Equity Index. Bolurfrushan received a Master’s degree and Bachelor of Science in Information Systems, Finance & Economics from Carnegie Mellon University and has attained an MBA from the Harvard Business School.

Double digit market share?

Toshiba locks it down in KSA

The notebook market share race is one of the most important technology footholds in the Middle East- and everyone is trying to get ahead. Toshiba is taking the lead and penetrating the competitive industry, according to the latest International Data Corporation’s (IDC) CY 2013 final results. Toshiba Gulf FZE is reportedly the number one vendor for notebook market sales in Saudi Arabia, Jordan, and East Africa. In 2013, Toshiba introduced a number of products including the Ultrabooks, the detachable Portege Z10t and convertible Satellite U920t, and the Encore WT8, a tablet designed for work and play suitable for on-the-go multimedia enthusiasts. It’s a do-it-all product when you want to leave your iPad at home, making it popular for the business traveler crowd or ‘treps on the go. The fact that both Windows 8 and 7 are available as operating system options for the Ultrabooks could be one point of popularity for Toshiba. In terms of Encore WT8’s popularity, having the combined power of Windows 8.1 and Intel Atom, a wide display panel for enjoying videos and pre-installed Microsoft Office, makes it a decent alternative to the iPad mini.

APRIL 2014

Entrepreneur

89

back page

Leading by example PHILANTHROPY IN BUSINESS

By Youmna Chagoury

L

eading businesspeople have taken a philanthropist approach to the way they manage their moneythey’re giving it away. Even if it isn’t always fully altruistic.

THE ROYAL H.H. Sheikh Mohammed bin Rashid Al Maktoum The Mohammed bin Rashid Al Maktoum Foundation The UAE Vice President, Prime Minister and Ruler of Dubai is also the major owner of Dubai Holding, an investment holding company. His foundation, established in 2007 with a $10 billion endowment, focuses on education in the Middle East in order to bridge the gap between the MENA region’s level of education and that of the West. The foundation regularly finances the creation of research centers within universities while the fellowship program offers scholarships to Arab students who wish to pursue their education. Both as a politician and a businessman, Sheikh Mohammed has launched 10 foundations in the sectors of health, culture and entrepreneurship. www.sheikhmohammed.co.ae

H.H. Sheikh Mohammed bin Rashid Al Maktoum

THE COUPLE Bill and Melinda Gates The Bill & Melinda Gates Foundation Founded in 1997 –it was then called the William H. Gates Foundation- it’s one of the leading philanthropic foundations, with an asset trust endowment of US$40.2 billion and grant payments totaling $28.3 billion since inception.

Focusing on global health (vaccines, medical research) and global development (agriculture, family planning, education), Bill and Melinda Gates have both been voted, alongside U2 lead singer Bono, Time’s Persons of the Year 2005 for their work through the foundation. www.gatesfoundation.org

THE JAILBIRD Leona Mindy Roberts Helmsley The Leona M. and Harry B. Helmsley Charitable Trust Nicknamed the “Queen of Mean”, this New York hotel tycoon was known for her infamous statement “We don’t pay taxes. Only the little people pay taxes”. The businesswoman was indeed investigated and convicted of several tax offenses but tried to make it up after her release from prison by donating large sums and investing more money into her charity. After her death, Leona Helmsley left practically her entire estate to the Leona M. and Harry B. Helmsley Charitable Trust (estimated between $5 billion and $8 billion). The charity has since spent most of the trust on health and medical research. Maybe this is Helmsley’s way of righting her past wrongs? www.helmsleytrust.org

90

Entrepreneur

APRIL 2014

| YOUR MONEY |

SINKING SHIP

“Don’t throw good money after bad” Read this if…

• You’re grappling with closing down your business, and you keep pouring money into it despite having no evidence that the situation will improve.

• You are considering the money you’ve already spent (retrospective cost).

• You’re considering investing in something, and you are examining the company’s P&Ls with trepidation.

• You want to sound like a ‘trep who has a grasp of basic econ. (Gotcha!)

what’s a few more thousand to keep it afloat? Isn’t it better than losing everything he’s already put into it?” Factoring in costs already spent thereby clouding the decision to continue to spend.

TERM Sunk cost fallacy or sunk cost bias (sometimes referred to as the concorde fallacy)

NITTY-GRITTY Microeconomics suggests that only the costs going forward should be factored in, so that every investment is taken in its own context and also because the retrospective cost is already gone and unrecoverable. According to Princeton, behaviorial econ research indicates that the sunk-cost bias does influence investments, both with new investors and existing ones.

DEFINITION “The idea that a company or organization is more likely to continue with a project if they have already invested a lot of money, time, or effort in it, even when continuing is not the best thing to do.” Source: Cambridge Business English Dictionary printed by the Cambridge University Press RELATED Loss aversion, opportunity cost ‘TREP TALK “Ahmad has already invested hundreds of thousands in this company-

LIFE APPLICATION “This book really sucks but I might as well read it until the end, I’m already 150 pages in- maybe it’ll get better.” Factoring in time already wasted, hoping that time will not have gone in vain on a craptacular read.

IN ENGLISH If you decide to read the rest of the crappy book because of the 150 pages you’ve already read, you’re not making a rational decision. Why? Because you’re missing the other alternative that presents itself: Using the time to do something more worthwhile.

APRIL 2014

Entrepreneur

91

BACK COVER