Entrepreneur Middle East August 2014 | Startup Guidance for New ‘Treps by Entrepreneur Middle East

SMEs and Islamic banking Dubai Islamic Bank CEO Dr Adnan Chilwan

STARTUP GUIDANCE FOR NEW â&#x20AC;&#x2DC;TREPS

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Bettering your corporate expansion odds Imad Ghandour Private Equity can push you further

[THE HOW-TO] Fleshing out your costs Number crunching logistics staffing resource allocation

Taking no for an answer Robert Carroll Six reasons why VCs reject good startups

and resources to adopt best practices

Creating visual consumer understanding Marc Kandalaft Six branding principals to follow

9 772311 541008 > AUGUST 2014 Entrepreneur 1 AUGUST 2014 | ENTREPRENEURMIDDLEEAST.COM | UAE AED20

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CONTENTS

WILD CAT IMAGE © BOSTON DYNAMICS

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48 Robots without feelings, visionary Ray Kurzweil, and everything else in the quickly advancing sphere.

elements gives you a pretty good idea of where to go, and how to get there by fleshing out costs and resources. Newly left the corporate scene? Use this guide as a refresher for the details you’ve forgotten on your way up.

Startup guidance for new entrepreneurs

TECH ONLINE ‘TREP

The how-to: Number crunching, logistics, resource allocation and staffing You may not have the formal business training acquired through inmarket experience, but the basics can be learned quickly enough. Focusing on these essential

Four GCC brands doing social media… right From Twitter to YouTube, there are some regional accounts distinguishing themselves online, and this is how they’re doing it. Four aspects to consider? Identity, engagement, content, and platform.

ASK A GEEK

SHINY

Forget the Irish, the robots are coming An interview with Golnaz van Huyssteen on A.I.’s current state. Read about robots without feelings, visionary Ray Kurzweil, and everything else in the quickly advancing sphere.

The things we want Gadgets and doodads that you might’ve missed out on, sourced by a tech aficionado. Yes, it’s okay to want them all… and no, it’s not our fault.

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CONTENTS

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88 Techie art goes global

EDITOR’S NOTE

TRAVEL

ESQUIRE GUY

By Fida Z. Chaaban

The “hotel within a hotel” Regional business takes you to Riyadh? Then it’s time you heard more about The Ritz-Carlton in the Kingdom, directly from the property’s GM Adel Al Mahboob.

‘TREPONOMICS: SKILLSET

36 CULTURE: LIFE

Stress-management tactics that you haven’t tried Do you ascribe to the belief that taking your work home with you is a bad idea? We have some tips that suggest otherwise.

56 DESIGN

Creating visual consumer understanding Marc Kandalaft discusses six branding principals to take into consideration when developing your brand’s identity and a cohesive visual strategy.

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66 TRAPPINGS

‘Trep gear The executive collection by Montblanc for the corporate overachiever on your list (or even a little self-reward). Travelling? Chanel’s got some great fragrance alternatives for the summer. And yes, sportswear done right by German pro golfer Martin Kaymer.

Method is the key to your end game Sales excellence in five steps. Among them? Margin management to help you boost profitability with the right prices.

Getting people to embrace your next big idea Ross McCammon gives you a few smooth tips on wowing your audience. You need to try to share it at the right time and with the right measure of enthusiasm.

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INTERIORS 468374677

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CONTENTS 42

‘TREPONOMICS: SKILLSET

ASK A PRO

The power of architecture Do you think your surroundings don’t make a difference? This is how the world around you shapes your thoughts and actions, and most importantly your ability to produce creative content. 42 The power of

architecture

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Human capital is your most valuable business asset Bayt.com’s Suhail Al-Masri talks about stats and remedies for employee turnover in the Middle East. Read his analysis on what may work for your business, and why there is no onesize fits all solution.

82 START IT UP: WACKY IDEA

Typography matters Startup founder Otba Mushaweh aims for Arabic font excellence with TypeStage. And yes, he admits that it’s been a long and bumpy ride.

84 START IT UP: Q+A

24 Dubai Islamic Bank CEO Dr. Adnan Chilwan

Success from the ground up Emirati ‘trep Ahmed AlMentheri talks about getting his startup off of the ground, and what sort of help Tejar Dubai can give you.

86 STARTUP FINANCE

The world is not enough Simon Hudson isn’t James Bond, but he is a ‘trep who recently opened up a new section of his startup in Istanbul. This is how he did it, and what you need to consider when branching out.

90 App pays users to get crowdsourced business insights

24 MONEY: YOUR MONEY

SMEs are increasingly taking to Islamic banking Dubai Islamic Bank CEO Dr. Adnan Chilwan discusses entrepreneurs opting for faith-based finance, and why you might decide to take your business there, too.

72 VC VIEWPOINT

Six reasons why VCs reject good startups Venture capitalist Robert Carroll admits that he says no to a lot of startups that pitch him. Find out why you might’ve fielded a VC rejection, and what you can do about it.

68 ASK THE MONEY GUY

Bettering your corporate expansion odds Imad Ghandour wants you to know that behind many successful companies there is probably a great private equity fund, and he’s got the case studies to prove it.

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MIDDLE EAST EDITOR IN CHIEF Fida Z. Chaaban editor@bncpublishing.net MANAGING DIRECTOR Walid Zok walid@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net DIRECTOR Wissam Younane wissam@bncpublishing.net SALES DIRECTOR Oliver Amos oliver@bncpublishing.net PUBLISHER Nehme Abouzeid CREATIVE LEAD Odette Kahwagi ONLINE LIAISON Kareem Chehayeb COLUMNIST Pamella de Leon WEB DIRECTOR Haydar Mtayrek CONTRIBUTING WRITERS Asheesh Advani Robert Carroll Amal Chaaban Youmna Chagoury Kareem Chehayeb Tamara Clarke James Clear Annette Ehrhardt Imad Ghandour

Simon Hudson Marc Kandalaft Danielle Kamar Maria Elena Kassab Lovrenc Kessler Dana Khairallah Pamella de Leon Ross McCammon

Wassim Mourtada Suhail Al-Masri Shoug Al Nafisi Octavia Nasr Rani Nasr May Rostom Geoff Weiss Erika Widen

In-house photography Mohammad Sajjad. Images used in Entrepreneur Middle East are credited when necessary. Attributed use of copyrighted images with permission. All images not credited otherwise Shutterstock.

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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!

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FEEDBACK Business efficacy... in real-time It’s not social media if you don’t talk back We’ve gotten tons of pictures via Twitter and Instagram, and here are a few of our favorites. If you see a copy of any edition of Entrepreneur MENA, tweet an image our way or tag us on Instagram. All of our reader images end up getting pinned to our Pinterest Show & Tell board. We’re happy to see our readers interact with us across all mediums- and we talk back!

Sharing economy?

Yes, and it’s fully organic! We’ve developed quite an active sharing culture on our Facebook page. Here are the top shared post for the month. Join us and be part of the information exchange! 1. Five things you need to know as an entrepreneur

2. Don’t wait for motivation, do this instead

3.Feel the freedom of business independence

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EDITOR’S NOTE

On the spectrum of human behavior, you might very well register as insane Normality and the lack thereof

rtists (especially counter-culture types), the ever-present I’m-somisunderstood crowd, and lately, successful entrepreneurs, are all categories of people that can often be heard referring to themselves as “different”. They openly acknowledge that they exhibit out of the norm behaviors, and being “different” has become somewhat synonymous with being an unorthodox thinker. Marching to your own drummer -in matters both personal and professional- has largely lost the stigma that it was formerly associated with, and “different” as an adjective has (for the most part) lost its negative connotation. No one wants to fit in anymore, and with good reason. Thousands of companies (maybe even tens of thousands) have now realized the value of promoting their “abnormal” business models and individualistic corporate cultures. Phrases like “celebrate your individuality”, “because you’re different”, and “be uniquely you” are only a few of the taglines that became marketing vogue. In the process, they ironically ceased to be “different” because

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everyone was using them. It’s worth remembering that only a few years ago, being “different” was frowned upon, and almost everyone wanted to project some semblance of “normal” to the outside world. No one wanted to accentuate their uniqueness, and it wasn’t very flattering to call yourself “crazy”- even in a context like, “I worked straight through the weekend, I must be crazy!” If you worked straight through the weekend (like I did), then you are indeed crazy, and I still don’t consider that one good (despite the fact that it may make you an overachiever). I’ve had a number of startup founders comment (unhappily) that they were positioned as a Wacky Idea in our Start It Up section. In short, that label was coined by our parent magazine, Entrepreneur, to describe original thinkers with companies that stand out. This is generally considered a good thing in a business context; these same Wacky Idea startups develop interesting solutions to common problems. ‘Treps, if we position you as a Wacky Idea, it doesn’t mean that it’s so implausible that it ceases to be a lucrative model and a viable

business. On the contrary, it means it’s a rare gem of an idea, and yes, that we’re celebrating your individuality. If your startup ends up in the magazine, know that it’s because you were being uniquely you, and crazy enough to work through the weekend, and finally, because you’re different. They’re all compliments, no matter how cheesy they may sound.

Fida Z. Chaaban Editor in Chief @fida editor@bncpublishing.net

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Entrepreneur

STARTUP GUIDANCE FOR NEW ENTREPRENEURS

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[THE HOW-TO] By Asheesh Advani

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Number crunching logistics staffing resource allocation

ou may not have the formal business training acquired through in-market experience, but the basics can be learned quickly enough. Focusing on these essential elements gives you a pretty good idea of where to go, and how to get there by fleshing out costs and resources. If youâ&#x20AC;&#x2122;ve had in-market experience from being part of a corporation, use this guide as a refresher since youâ&#x20AC;&#x2122;re ostensibly working with way less capital and staff than the company you left when you joined the entrepreneurial ranks.

PART ONE

FIGURING OUT YOUR COMPANY’S FORECAST REVENUE NUMBERS HOW-TO AND GROWTH When starting out, financial forecasts may seem overwhelming. We’ll help you conquer the numbers with this easy-to-follow guide to forecasting revenues and expenses during startup. Forecasting business revenue and expenses during the startup stage is really more art than science. Many entrepreneurs complain that building forecasts with any degree of accuracy takes a lot of time- time that could be spent selling rather than planning. But few investors will put money in your business if you’re unable to provide a set of thoughtful forecasts. More important, proper financial forecasts will help you develop operational and staffing plans that will help make your business a success. Here’s some detail on how to go about building financial forecasts when you’re just getting your business off the ground and don’t have the luxury of experience.

Variable Costs > Cost of goods sold > Materials and supplies > Packaging

> Direct labor costs > Customer service > Direct sales > Direct marketing

Here are some rules of thumb you should follow when forecasting expenses: > Double your estimates for advertising and marketing costs since they always esca-

late beyond expectations. > Triple your estimates for legal, insurance and licensing fees since they’re very hard to predict without experience and almost always exceed expectations. > Keep track of direct sales and customer service time as a direct labor expense even if you’re doing these activities yourself during the startup stage because you’ll want to forecast this expense when you have more clients.

2. FORECAST REVENUES USING BOTH A CONSERVATIVE CASE AND AN AGGRESSIVE CASE.

If you’re like most entrepreneurs, you’ll constantly fluctuate between conservative reality and an aggressive dream state which keeps you motivated and helps you

Double your estimates for advertising and marketing costs since they always escalate beyond expectations.

1. START WITH EXPENSES, NOT REVENUES.

When you’re in the startup stage, it’s much easier to forecast expenses than revenues. So start with estimates for the most common categories of expenses as follows: Fixed Costs/Overhead > Rent > Utility bills > Phone bills/ communication costs > Accounting/bookkeeping > Legal/insurance/ licensing fees > Postage > Technology > Advertising and marketing > Salaries AUGUST 2014

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STARTUP GUIDANCE FOR NEW ENTREPRENEURS

By building two sets of revenue projections (one aggressive, one conservative), you’ll force yourself to make conservative assumptions and then relax some of these assumptions for your aggressive case.

inspire others. I call this dream state “audacious optimism”. Rather than ignoring the audacious optimism and creating forecasts based purely on conservative thinking, I recommend that you embrace your dreams and build at least one set of projections with aggressive assumptions. You won’t become big unless you think big! By building two sets of revenue projections (one aggressive, one conservative), you’ll force yourself to make conservative assumptions and then relax

some of these assumptions for your aggressive case. For example, your conservative revenue projections might have the following assumptions: > low price point > two marketing channels > no sales staff > one new product or service introduced each year for the first three years Your aggressive case might have the following assumptions > low price point for base product, higher price for premium product > three to four marketing channels managed by you and a marketing manager (continue on to the second half of this how-to guide learn how you can afford a marketing manager) > two salespeople paid on commission

> one new product or service introduced in the first year, five more products or services introduced for each segment of the market in years two and three By unleashing the power of thinking big and creating a set of ambitious forecasts, you’re more likely to generate the breakthrough ideas that will grow your business. 3. CHECK THE KEY RATIOS TO MAKE SURE YOUR PROJECTIONS ARE SOUND.

After making aggressive revenue forecasts, it’s easy to forget about expenses. Many entrepreneurs will As revenues grow, overhead costs should represent a small proportion of total costs and your operating profit margin should improve.

optimistically focus on reaching revenue goals and assume the expenses can be adjusted to accommodate reality if revenue doesn’t materialize. The power of positive thinking might help you grow sales, but it’s not enough to pay your bills! The best way to reconcile revenue and expense projections is by a series of reality checks for key ratios. Here are a few ratios that should help guide your thinking: 1. Gross margin What’s the

ratio of total direct costs to total revenue during a given quarter or given year? This is one of the areas in which aggressive assumptions typically become too unrealistic. Beware of assumptions that make your gross margin increase from 10% to 50%. If customer service and direct sales expenses are high now, they’ll likely be high in the future. 2. Operating profit margin

What’s the ratio of total operating costs -direct costs and overheard, excluding financing costs- to total revenue during a given quarter or given year? You should expect positive movement with this ratio. As revenues grow, overhead costs should represent a small proportion of total costs and your operating profit margin should improve. The mistake that many entrepreneurs make is they forecast this break-even point too early and assume they won’t need much financing to reach this point. What’s the ratio of total direct costs to total revenue during a given quarter or given year? This is one of the areas in which aggressive assumptions typically become too unrealistic. 18

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3. Total headcount per client If you’re a one-man-

army entrepreneur who plans to grow the business on your own, pay special attention to this ratio. Divide the number of employees at your company -just one if you’re a jack-of-alltrades- by the total number of clients you have. Ask yourself if you’ll want to be managing

that many accounts in five years when the business has grown. If not, you’ll need to revisit your assumptions about revenue or payroll expenses or both. Building an accurate set of growth projections for your startup will take time. When I first started my company, I avoided building a detailed

set of projections because I knew the business model would evolve and change. But I regret not spending more time on business planning since I would have avoided several expenses along the way. The company’s board of directors now requires me to prepare quarterly updates to our financial projections. Now when

I lapse into fits of audacious optimism, the projections force me to forecast what these dreams mean for the company’s bottom line. Keep track of direct sales and customer service time as a direct labor expense even if you’re doing these activities yourself

PART TWO

Staffing and resource allocation How-to pay employees during the initial stages When getting your company off the ground, there are ways to compensate workers that won’t break the bank. Q I need to hire three employees to help get my business started, but I don’t have enough financing to pay the salaries for all three. Should I try to raise more money before hiring anyone or should I hire just one employee and hope that I can make it work with limited resources? A Every entrepreneur faces the question of how to pay employees during the startup stage when money is tight and the business has yet to prove itself. You’ll be able to determine the right answer to your question by understanding the nature of your business and your appetite for risk. If your business growth is best executed in small steps, your staffing

strategy should be very different than if your business needs financing in large portions. For example, if your business is a restaurant, it would be foolish to try to launch it without adequate staff and equipment. Alternatively, a one-man army could be the best way to start an import-export business or consulting practice. If you’re convinced your business needs three employees to get off the ground, you shouldn’t launch it until you can hire all three. This is a surefire way to increase the possibility that your business will fail due to poor execution. If you don’t have enough money to pay for three employees, there still might be a way to make it work. Here are some creative ways to compensate your employees during the startup stage: 1. Hire stay-at-home moms and dads Part-time employ-

ees, particularly stay-at-home moms and dads, are a secret weapon for startups. When my company first launched, we advertised for “flex time” employees in local papers and were surprised by the number of highly qualified applicants

we received. For less than half the cost of full-time staff, it’s possible to attract experienced employees to your company. If you plan to hire a stay-athome parent to work at your company, be wary of assigning them critical time-sensitive

projects. Keep in mind that if you’re not paying them enough to cover adequate child care, they’ll be unable to prioritize business meetings over personal meetings if they have a sick child or family situation to deal with. AUGUST 2014

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STARTUP GUIDANCE FOR NEW ENTREPRENEURS 2. Defer compensation

One of the most common ways that cash-strapped entrepreneurs hire employees is by convincing them to accept deferred or delayed compensation. There are different ways to do it: a deferred cash bonus until the business generates a certain amount of revenue; an increased salary when the employee hits performance milestones; or back-pay provided when the business becomes profitable. I recommend offering an increased salary rather than a cash bonus or back-pay because one-time lump sum payments tend to offer shortlived gratification and tend to give you less bang for the buck. In addition, employees feel more pride when their salary is permanently increased due to business progress or personal achievement. If you choose to offer deferred compensation, it’s very important to consult an attorney about how to write the offer letter for the employee. For example, even using the term “deferred compensation” (as opposed to “bonus payment” or “performance incentive”) can create a binding liability for your company. This is one of the areas where spending a few hundred dollars for an attorney to provide you with a sample offer letter could save you thousands later. 3. Use equity and stock options Another alternative

is to offer employees equity grants or stock options instead of cash. This is only a viable alternative for companies that have realistic prospects for liquidity; in other words, don’t offer stock options if you

interns are not like part-time employees who are primarily interested in a paycheck: You can’t expect to give them menial work for the duration of their internship. 20

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don’t think they’ll be worth anything. Most companies are never sold and never have an IPO, so it’s unlikely that stock options are a worthwhile compensation tool. Nevertheless, stock options tend to motivate employees more than cash bonuses at the startup stage. The cocktail party crowd has romanticized stock options, and employees still find them appealing, even if they’re unsure about their true value. My advice is to avoid stock options (and the legal costs of setting them up) unless you genuinely believe they’ll be valuable one day. 4. Employ interns and volunteers Hiring unpaid

staff is an obvious solution for startups but one that’s often overlooked. Colleges and universities are teeming

One of the most common ways that cash-strapped entrepreneurs hire employees is by convincing them to accept deferred or delayed compensation.

with bright young workers willing to work part-time or full-time during vacations to gain experience. Just posting an internship announcement at your local college will draw applicants. It takes effort to set up a win-win situation for both intern and employer, however. It’s important to remember that interns are not like part-time employees who are primarily interested in a paycheck: You can’t expect to give them menial work for the duration of their internship. One way to motivate interns is to ask them to list their learning

objectives for the internship. Have monthly meetings with them to track how well they’re doing on reaching these objectives. Then even doing menial work becomes tolerable if it’s put in context. 5. Focus on revenue

As any entrepreneur will tell you, the best way to pay for three employees when you only have the financial resources to hire one is to generate more revenue. The first of the three employees you hire should be the one that will get you closest to generating sales so you can afford to hire the other two. It’s never too early to start selling-or pre-sellingyour product to get funds in the door.

THE REAL DEAL In this issue check out regional startups like Task Spotting, Typestage, and Melltoo in our Start It Up section! Online you can see startups featured in previous print editions, as well as some webexclusive features. Visit us on the web entrepreneurmiddleeast.com

Access our full online archive issuu.com/entmagazineme

If you’re a promising startup in the MENA region we want to hear from you. Send an email to our Editor in Chief editor@bncpublishing.net

Want to hear a response from us in real-time? Tweet at @EntMagazineME or directly at our Editor at @Fida. It’s not social media if you don’t talk back: Entepreneur Middle East is business efficacy in real-time.

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money

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

ON AN EVEN KEEL SMES ARE INCREASINGLY TAKING TO ISLAMIC BANKING

DUBAI ISLAMIC BANK CEO DR. ADNAN CHILWAN DISCUSSES ENTREPRENEURS OPTING FOR FAITH-BASED FINANCE, AND WHY YOU MIGHT DECIDE TO TAKE YOUR BUSINESS THERE, TOO

“T

he principles of Islamic finance are rooted in fairness and transparency, and we are seeing that an increasing number of businesses are looking to work with banks that have these ethical business practices at their core,” explains CEO Dr. Adnan Chilwan, Dubai Islamic Bank (DIB). This, according to Dr. Chilwan, is one of the reasons that the Islamic finance sphere demonstrated “a greater degree of resilience when compared to conventional banks” during the most recent financial crisis. The bank also noticed an upswing of fresh clients, partly due to what he considers a shift in perception. “We saw that many governments, businesses and individuals now view it as a more genuine and fair way of banking. For SMEs in particular, Islamic banking provides safe and reliable access to finance, in addition to a variety of market-leading products and services.”

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Appointed to the position of CEO last year, Dr. Chilwan is quick to note that DIB boasts four decades in the Islamic banking space, and that the institution is “the first Islamic bank in the world.” Nearly 20 years into his lengthy career in banking, the CEO is one of the biggest proponents of this particular type of faith-inspired finance, and he is certain that SMEs are gravitating their way for both market benefits and security: “DIB has built a reputation for constantly developing innovative products that are strictly Sharia-compliant and protect our customers whilst helping them fulfill their growth plans.” Growth plans that Dr. Chilwan says promote values in common with Islamic finance like openness and opportunity for all. While not all SMEs are going to opt for faith-based finance options, studies indicate both greater interest and investment into the space, and not just in the GCC.

Is Islamic finance a fit for Q + A your business? HOW DO ISLAMIC BANKING PRACTICES ENCOURAGE AND FOSTER ENTREPRENEURSHIP?

With a philosophy rooted in fairness and transparency, Islamic banking encourages practices that promote the betterment of the community. To this end, the entrepreneurial spirit has the same values that are espoused by Islamic banks. By providing access to these ethical financial services, we encourage the growth of SMEs in the country that not only provide valuable jobs, but have an important impact in creating a more sustainable economy. DIB in particular works on a personalized level with entrepreneurs and small businesses to understand how we can best support them and foster growth. With a constantly evolving offering, high finance amounts and rapid approvals, we offer business finance solutions that unlock invaluable opportunities for SMEs. ARE SMES THAT GRAVITATE TOWARD DIB CONCERNED PRIMARILY WITH FAITH OR DO YOU HAVE CLIENTS THAT LOOK AT THE OPTIONS STRICTLY FROM A BUSINESS PERSPECTIVE?

survey from the International Finance Corporation (IFC) revealing that over 32% of the overall SME population is eager for access to Islamic finance, according to the Islamic Banking Opportunities across Small and Medium Enterprises in MENA report. Consequently, it is evident that businesses are not necessarily looking at Islamic banking for religious reasons, rather, they are also seeing its benefits from an economic perspective.

capital expenditure finance, contracting and fleet finance, as well as flexible repayment options, we have invested in dedicated relationship advisors that are able to advise small businesses based on a thorough understanding of their financial capabilities and ambitions. We have also allocated a large degree of our product development focus and expertise to ensure we are continually innovating and diversifying our services to provide a customer experience that goes well beyond the norm.

What sort of services does DIB NOTICE ENTREPRENEURS OPTING FOR? IS WORKING CAPITAL THE MAINSTAY?

HOW LONG HAS DIB MADE THE SME SPHERE A PRIORITY?

While providing access to working capital finance is a key component of our offering for SMEs, the bank has a range of other services that have been developed to cater to the needs of all the companies in this sector. In addition to

The SME sector is clearly important to the sustainable development of the UAE, contributing to 60% of its non-oil GDP and 86% of private sector employment. As the engines of the local economy, these small businesses and startups

are critical in promoting innovation and economic growth, and given its importance, we have invested in developing a unique array of Sharia-complaint products to meet their needs. Given our emphasis on supporting Dubai’s long-term ambitions, we strongly believe that fostering the growth of these SMEs is our responsibility. Indicative of our success, we have seen that consumer and SME-lending together now form the largest business for the bank, and DIB boasts one of the widest networks in the country. In fact, since the financial crisis our core

“DIB HAS BUILT A REPUTATION FOR CONSTANTLY DEVELOPING INNOVATIVE PRODUCTS THAT ARE STRICTLY SHARIA-COMPLIANT AND PROTECT OUR CUSTOMERS WHILST HELPING THEM FULFILL THEIR GROWTH PLANS.”

Dubai Islamic Bank CEO Dr. Adnan Chilwan

Since its inception, DIB has launched innovative Shariacompliant banking services that compete on an equal footing with products from conventional lenders. With this reputation as a pioneer in the industry and our wellestablished commitment to providing ethical banking services, SMEs in the market are increasingly choosing to bank with us. In fact, if we look at the industry on a broader level, there is a growing demand for Islamic banking services across the MENA region, with a recent

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and our client base has nearly doubled, highlighting our widely-recognized ability to help SMEs enter the next phase of their growth journey. WHAT SERVICES AND PRODUCTS ARE SME CLIENTS USING? IN 2013, HOW MUCH OF YOUR BUSINESS WAS WITH SMES?

DIB recently launched a comprehensive SME offering targeted towards this critical and growing sector in the country. The revamped and comprehensive product and services suite primarily focuses around the liquidity management and working capital finance needs of the customers across this segment. Although still in a relatively nascent stage, there has been aggressive push during 2014 to improve volumes from existing customers as well as to focus on acquiring new ones. This business segment offers a

huge upside for the bank as we are barely scratching the surface with overall lending just above the 2% mark (up from under 1.7% in 2013) of the bankâ&#x20AC;&#x2122;s total loan book, and trade finance moving into double digits at just over 10% compared to under 8% last year. Not only do we see a massive growth potential with this new initiative, but we also see positive impact on the overall yields as the margins in this segment are akin to consumer finance and hence quite lucrative. TAKING INTO CONSIDERATION THAT THE ISLAMIC BANKING SPACE IS HIGHLY COMPETITIVE, WHAT INITIATIVES HAS DIB PUT INTO PLACE TO CONTINUE TO ATTRACT NEW SME CLIENTS?

Over the last few years we have seen a greater push in the Islamic banking space, as an increasing number of conventional lenders are

ENABLING ENVIRONMENT AND SUPPLY SIDE ANALYSIS (SME & ISLAMIC SME)

recognizing the value and the demand for Sharia-compliant banking services. Due to this growth, banks in the space have been pushed to invest in innovation and in the delivery of high-quality services. We

have led the way in this regard through the development of a diverse suite of Shariacompliant products. Our SME Business Solutions Initiative provides entrepreneurs and small business owners with

CHALLENGES FACED BY SMES ACROSS COUNTRIES

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ENABLING ENVIRONMENT AND SUPPLY SIDE ANALYSIS AND CHALLENGES FACED BY SMES ACROSS COUNTRIES SOURCE ISLAMIC BANKING OPPORTUNITIES ACROSS SMALL AND MEDIUM ENTERPRISES IN MENA REPORT IFC

money

SME PERCENTAGE AS A PERCENTAGE OF TOTAL LENDING SOURCE ISLAMIC BANKING OPPORTUNITIES ACROSS SMALL AND MEDIUM ENTERPRISES IN MENA REPORT IFC

access to a broad range of customized solutions that have been designed to support their needs and growth ambitions. In addition to business accounts services, cash management tools, and trade and treasury products, as well as business credit cards, we have also recognized the growing demand for access to digital banking in this space. Our electronic banking platforms have been designed to meet these needs and have allowed us to engage customers more effectively through these technological propositions. These initiatives have distinguished DIB in the market and are evidence of our well-established reputation as the most progressive Islamic bank in the industry. DIB IS TO ACQUIRE “A 40% STAKE” IN INDONESIAN ISLAMIC FINANCIAL INSTITUTION PT BANK PANIN SYARIAH. HOW DOES DIB COMPARE TO OTHER GCCBASED ISLAMIC BANKS IN TERMS OF GROWTH?

We have been able to pursue further growth internationally thanks to the strong position the bank is in today. With a robust balance sheet, strong capital position and ample liquidity, DIB is now wellpositioned to embark on a new growth strategy that will also allow us to take advantage of the positive macro-economic climate. Part of this approach involves supporting our expansion in the UAE through inorganic growth abroad. DIB’s recent investment in the Indonesian lender PT Bank

“DIB WORKS ON A PERSONALIZED LEVEL WITH ENTREPRENEURS AND SMALL BUSINESSES TO UNDERSTAND HOW WE CAN BEST SUPPORT THEM AND FOSTER GROWTH.”

Dubai Islamic Bank

Panin Syariah is indicative of this strategy of taking our well-established expertise in Islamic banking to other markets and partnering with institutions that have valuable local knowledge. We are also looking at promising opportunities in Kenya that will further build on our successful operations in important markets like Pakistan, Jordan, Bosnia, and Sudan. We are also seeing a trend across the industry as a number of conventional and Islamic lenders have looked to grow their businesses through acquisitions. The general positive economic climate in most parts of the GCC, particularly the UAE, is fuelling these sentiments.

around 40 years-old, it has made huge gains and continues to surpass the growth of the conventional sector, at least in the core markets. Various terms are being used for Islamic banking as well, such as “participation banking” [and] “ethical banking” amongst others, but that obviously would not make the non-Islamic banks unethical. Hence, I do not see Islamic banks being viewed as unconventional just because the non-Islamic players are

referred to as “conventional”. We, at DIB, have positioned ourselves as a bank for all and though Islamic banking is in our DNA, we do not limit ourselves to just a portion of the market or customer base. We know that we have the products, services, capabilities and the reach to target every single prospect looking for banking services and not just the core Islamic niche and that has been the secret of our success so far in any market we operate in.

THE LABEL “CONVENTIONAL BANKING” IS COMMONLY USED WHEN CONTRASTED WITH “ISLAMIC BANKING”. FROM A SOCIOLOGICAL PERSPECTIVE DO YOU FEEL THAT THE TERM IS APPROPRIATE?

Islamic banking is a relatively new concept when compared with the age-old and established traditional or “conventional” banking business. Although, only AUGUST 2014

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IN THE LOOP Former President Nicolas Sarkozy

FORMER FRENCH HEAD OF STATE FACES CORRUPTION ALLEGATIONS

orruption (or allegations of corruption) seems to be a fad among French leaders. Former President Nicolas Sarkozy has been hoping to make an impressive political comeback after losing to François Hollande in the 2012 elections. That won’t happen anytime soon by the looks of it: Sarkozy was charged with corruption based on allegations that he received up to €50 million from late Libyan dictator Muammar Gaddafi in illicit campaign financing. Apparently, the aforementioned funds were received during the 2007 elections where Sarkozy won the presidency. That’s not all that’s plaguing Sarkozy’s reputation these days, in another case the ex-president was accused of receiving political support from business magnate Bernard Tapie, with giving him €400 million in return… from the state. Tapie too has been charged numerous times for corruption and tax fraud. Birds of a feather might possibly serve prison sentences together? In mid-July, Le Monde newspaper published transcripts of a phone call between Sarkozy and his lawyer, Thierry Herzog. The plan? Helping Judge Azibert in exchange for information. The judge has a history of this; he has previously been charged for illegally sharing info. Though the phone Sarkozy used was registered to a different name, he wasn’t able to get away with it. Perhaps he forgot that while French presidents are immune from prosecution while in office, he is no longer above the law once his term ends. This all sounds super intense, but just two years ago former President Jacques Chirac, who held French office from 1995 to 2007, was charged due to actions he made as mayor of Paris. He paid members of his political party for municipal jobs that were made up, basically using state money to finance his political party. He was given a two-year suspended sentence, which means that Chirac has the opportunity to remain jail-free if he doesn’t get himself into any more trouble. Sarkozy on the other hand, could face over 10 years in jail if found guilty. Hollande will be running again in 2017, but we don’t anticipate Sarkozy as an opposing candidate.

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India to administer free vaccinations to the public Child mortality has been an issue the Indian government has been tackling for a while. Prime Minister Narendra Modi announced that four vaccinations will be provided for free as part of India’s program to decrease child mortality. The vaccinations combat polio, rubella, rotavirus, and Japanese encephalitis, all which have been the cause of a high number of deaths among Indian children. A statement by Prime Minister Modi stated that approximately 80,000 children die from diarrhea due to rotavirus, and hundreds die as a result of encephalitis annually. While these vaccinations are available in India, they are only offered through private hospitals, making it out of reach for a large percentage of Indian families. One of India’s biggest challenges is the ever-growing population coupled with difficult conditions (including sanitation issues), creating a perfect environment for the spread of disease. Overall, India is providing a total of 13 free vaccinations to fight various life-threatening ailments, meaning that preventative public health has been pushed high on the Indian government agenda.

Child thought to be “cured” of HIV shows renewed signs of infection

wo years. That’s how long a Mississippi baby went without antiretroviral therapy before signs of the HIV virus were redetected in the child’s system- a “punch in to the gut,” as pediatric HIV specialist Dr. Hannah Gay said on the disappointment of researchers hoping to find a cure. Last year, the prematurely-born baby girl made news headlines for being “functionally cured” after immediate administration of a liquid antiretroviral at the University of Mississippi Medical Center by Dr Gay. The child showed no signs of the virus afterwards, continuing treatment for 18 months. The girl returned to the hospital a few months ago with still no sign of the virus, surviving 27 months without treatment. Unfor-

HIV virus

tunately during a routine checkup in early July, testing indicated that the virus had begun to replicate prompting doctors to administer anti-HIV drugs. In all likelihood, the treatment will have to be continued for the foreseeable future. Researchers remarked that while it was disappointing that the virus returned, the positive side is that she was able to remain treatment-free for two years. This suggests to researchers that while “very early therapy” did not remove the “reservoir of HIVinfected cells”, virus development was reduced (National Institutes of Health). In more promising HIV news, Gizmodo reported that scientists are tinkering with using genome editing technology, a possible cure for even latent infections. Previously, there have been cases where they’ve cut out the DNA sequence of a specific human protein that the HIV virus fastens itself to. Instead of editing human genes, Dr. Kamel Khalili’s study is going straight for the HIV, possibly preventing more new infections. There are still challenges, but if they can be met then genome editing might just be one route to developing a cure.

Testing out social media emotional contagion? Facebook admits to influencing “sadder” users for experiment

acebook has given users one more reason to suspect their intentions. The social network has been the target of worldwide backlash after news broke that they conducted a psychological experiment on nearly 700,000 users’ emotional state- without their consent. For one week in January 2012, using an algorithm, data scientists manipulated what users saw on their newsfeed. A segment of users were shown content meant to trigger happier emotions, and others were presented with content identified as more sad in tone. The test? At the end of the week, they wanted to determine whether the manipulated users were more likely to post positive or negative content in response to what they’d been exposed to on their respective timelines (The Atlantic). In research terms, the concept they were looking for was the “emotional contagion” via social platforms. Why is this such a big deal? Facebook user data has been observed by other studies in the past, but this study, published in Proceedings of National Academy of the National Academy of Sciences, actually went leaps and bounds further by influencing user emotions. Facebook’s lengthy terms of service states that users allow their data to be used for

“analysis, testing, [and] research.” So yes, legally, they can use you as a lab rat- you’re basically volunteering by having a Facebook account. Nonetheless it hasn’t stopped people from showing their disdain of the experiment with some commentators even going so far as to suggest that the emotional manipulations might have triggered participants to contemplate suicide, ostensibly due to being sad after exposure to negative content in that timeframe. What’s more? Users are ticked off that even after the study was conducted, they weren’t informed that their feed had been altered for research purposes. As a response to public fury, one of the paper’s authors Adam Kramer responded in a Facebook post that the research was done “to learn how to provide a better service,” and referenced “internal review practices” after discussions whether it was reviewed by an institutional review board. According to The Atlantic, the study found that emotional states can be “transferred”, meaning that people can have the same emotions unknowingly just by reading each someone else’s newsfeed. Further, they found that when the researchers limited the amount of positive or negative emotional content, people also reduced the amount of emotional content

they posted on Facebook. But should we even be surprised that our platforms are altered? WSJ reports that two years ago, users were locked out of their accounts and had to prove they were real- for a test to “help improve Facebook’s antifraud measures.” And it’s not just Facebook who researches users and their data- others include household names like Yahoo Inc., Microsoft Corp., Twitter Inc., and Google Inc. Is this freaking you out? Maybe it’s time to commit social media suicide and look for that deactivate account button.

TSA adjusts U.S. airport security measures to include mobiles and tablets The United States Transportation Security Administration, better known as the TSA, is adopting new security tactics that are headline-worthy. Passengers flying into the United States must have their phones and tablets charged and powered-on. While airport security already screens your electronic devices, they may now ask you to turn some of them on; the TSA stated that checking devices is necessary because they can be used as hidden bombs. If the device is faulty or has an empty battery, you’ll have to leave it behind. This may sound excessive, but at some point no one thought a bottle of water could be used inflight to cause

mayhem. The TSA previously made headlines by introducing backscatter x-ray machines at U.S. airports. People felt uncomfortable knowing that their body parts would be revealed at airport security, and the option of having a public or private pat down wasn’t sufficient either. As of May 2013, these x-ray machines have been removed from airports. When it comes to checking phones and tablet devices, many travelers will wonder to what extent their private information will be read and exposed. Are they going to start looking through your videos, pictures, contacts and text messages? Where is the line drawn with this new security measure? People will be keeping a close eye on the TSA, who have promised travelers at American airports that they’ll strive towards providing security with the least inconvenience possible. AUGUST 2014

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Method is the key to your end game Sales excellence in five steps By Lovrenc Kessler and Annette Ehrhardt

n the tough economic environment today, sales departments in the Middle East are facing immense challenges stemming from demands for higher revenue growth and cost efficiency. Mature sales structures are being put to the test everywhere. Large corporations and mid-sized firms are striving to improve their sales excellence in order to profit even more from the sales side. The ideal sales organization may look different depending on the industry and company, but a sales optimization always involves five components:

1. SALES STRATEGY

Set your priorities right: Putting the right sales targets and budgets in place can only be done when you are fully knowledgeable of the strategic importance of markets and customer segments. Yet this knowledge is often whatâ&#x20AC;&#x2122;s missing: At a manufacturer of machine tools, the head of sales saw India as the most important future market. The vice-head of sales, however, felt that international marketing for highly complex specialty products was the most important aspect. To set their priorities, all product and customer segments including sales regions were analyzed according to attractiveness, competitiveness and positioning advantages for the company. The result: While India posed the greatest potential, the company had a weak pres-

BOOST PROFITABILITY WITH THE RIGHT PRICES: YOUR TYPICAL SALES REP PAYS GREAT ATTENTION TO THE NUMBER OF CLOSED DEALS, BUT THE PROFITABILITY OF ORDERS IS OFTEN NEGLECTED.

HOW MANY HUNTERS AND FARMERS DOES YOUR SALES ORGANIZATION NEED? WHAT ABOUT KEY ACCOUNT MANAGERS AND IN-HOUSE SALES? HOW SHOULD RESPONSIBILITIES AND INTERFACES BE ORGANIZED? ence there. In terms of specialty products, however, the company was a world market leader. As a consequence, the company set for both markets diverse, but specific and well-coordinated sales strategies and targets. 2. MARKET APPROACH

Ensure growth with the best possible market development: What is the best mixture of direct and indirect as well as physical and digital sales channels? The machine tool manufacturer decided to build its own sales subsidiaries 30 in core markets while deploying agents in India for the time being to penetrate the market most efficiently. The sales managers discovered even more growth potential in a deeper analysis: The market volume of all offers and won contracts were compared for all parts markets. In one region, the sales team took part in almost 90% of all tender processes, but they won less than 15% of them. An enhanced approach to assessing and prioritizing inquiries considerably increased the rate of closed deals within a short time.

ENSURE GROWTH WITH THE BEST POSSIBLE MARKET DEVELOPMENT: WHAT IS THE BEST MIXTURE OF DIRECT AND INDIRECT AS WELL AS PHYSICAL AND DIGITAL SALES CHANNELS? 30

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Phoenix Towers 3d rendering ® chetwoods architects

3. STRUCTURE IS KEY

Create sales structure efficiency with the right sales organization: How many hunters and farmers does your sales organization need? What about key account managers and in-house sales? How should responsibilities and interfaces be organized? The sales organization of a logistics provider had grown disorganized over time and was quite inefficient. The sales organization benefited greatly from re-classifying its A/B/C customers in sales. It also systematically transferred D customers to in-house sales and ensured that several hunters focused more strongly on customer acquisitions. At the same time, sales processes were revised to give the sales force more time for core sales activities. Before this, they spent too much time on administrative tasks such as filling out forms about customer visits. 4. MARGIN MANAGEMENT

Boost profitability with the right prices: Your typical sales rep pays great attention to the number of closed deals, but the profitability of orders is often neglected. As a result, a screw manufacturer decided to revise its discount system for small and mid-sized customers. Compulsory escalation rules were set for every situation. They stipulated which discount amounts required authorization from a superior. Already in the first month, there was a clear drop in the number of discounts. For key accounts, customer-specific pricing was systematized. A tool on laptops told sales reps the ideal target price for every order– depending on customer type, product type,

delivery time and further criteria. This price served as a guideline in negotiations. Furthermore, by restricting the amount of uncoordinated discounts, there was a significant increase in margins. 5. CONTROLLING AND REMUNERATION

More transparency and better steering: At the screw manufacturer, a new sales controlling system was set up that delivers a multi-dimensional revenue and profit margin analysis at the push of a button. The analysis quickly pinpoints and corrects inefficiencies on regional, product group and individual employee levels. What’s more, the margins of the screw manufacturer benefited from changes in sales remuneration. The bonus no longer depended solely on revenue, but also on how well the target price was achieved in negotiations.

PUTTING THE RIGHT SALES TARGETS AND BUDGETS IN PLACE CAN ONLY BE DONE WHEN YOU ARE FULLY KNOWLEDGEABLE OF THE STRATEGIC IMPORTANCE OF MARKETS AND CUSTOMER SEGMENTS. There is no one optimal way of organizing your sales division, but there is the one right path to sales excellence. This path will take you through fives steps covering sales strategy, market approach, sales structure, margin management and controlling/remuneration. The end game, strong sales, needs direction and implementation before it can really take off and achieve maximum results. Lovrenc Kessler is Managing Director of Simon-Kucher & Partners’ Middle East office in Dubai. Annette Ehrhardt is a Senior Director with Simon-Kucher. Simon-Kucher is a global consulting firm with 700 professionals in 27 offices worldwide focusing on Smart Profit GrowthSM. Founded in 1985, the company has almost three decades of experience providing strategy and marketing consulting.

Wuhan reaches for the sky You may be so-over with the race to build the tallest building, but China isn’t

fter China’s last “mission: sky high” came to a halt less than a year ago, plans for a new venture are currently pending government approval. The ambitious kilometer-high building in Wuhan is to be built on an island in a lake with projected completion by 2017/2018. If all goes to plan, it will reign supreme- at least until the Kingdom Tower in Saudi Arabia is complete in 2019. The planned building is part of the two Phoenix Towers intended to revive Wuhan, bringing together culture and environmental responsibility. The towers are set to house several futuristic restaurants, a commercial center, and the world’s tallest kaleidoscope. The cherry on top? Taking an eco-friendly angle, the towers will reportedly feature pollution-absorbing surfaces, suspended gardens, biomass boilers, and use enough renewable power to fuel both of the buildings as well as the neighboring areas. Wuhan’s new symbol is to reflect the dualism in Chinese culture, and will (surprisingly) sport the color pink, meant to reflect sunset colors. If the project delivers all that it is promising, the Phoenix towers might just hold the key to solving China’s major pollution problem, in addition to boosting the area’s eco-tourism. AUGUST 2014

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FOUR GCC BRANDS DOING SOCIAL MEDIA... RIGHT Identity, engagement, content and platform all make a difference when it comes to digi By Danielle Kamar

ith the increase of organizations on social media and the lack of copyright laws to protect social campaigns, brands have been forced to push boundaries and create stronger, more durable strategies that cannot easily be copied. Some of the best approaches have taken to creating a social presence feeding off the brand’s identity, an element too strong for a competitor

1. PEPSI ARABIA

Pepsi’s approach to maintaining a unique social presence was to give it a personality trait in keeping with its brand positioning. Pepsi worked to add a carefree attitude to their social presence by promoting #YallahNow in support of their “Live for Now” identity. The brand hosted online campaigns, games and applications all revolving around the hashtag and living life to its fullest, with the product itself coming in as a secondary focus. #YallahNow has become an attitude, a way of life that is bound to Pepsi Arabia’s social identity, leaving no cracks for competitors to try and exploit. They have also cleverly used their carefree persona as a uniting thread for their other social campaigns like the ongoing #FutbolNow, which similarly focuses on living in the moment. 32

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to add to its own mix. These four regional brands have managed to do so successfully and have become so synonymous with the social persona they created for themselves that it is now impossible to disconnect them from it. Each of these four approaches offers a different facet of how to create a social presence reflective of the company’s core attributes.

3. MARKS & SPENCER ARABIA

This retail store has taken a different, more subtle route to maintaining a unique social presence. Marks & Spencer took to YouTube with their selfproduced series London Calling. The short webisodes tell the story of two sisters through

their Skype sessions with family and friends. The product placement discreetly appears in every other video. The brand’s identity comes through the actual characters of the series, all of which can appeal to different follower age segments.

2. NESCAFÉ ARABIA

This brand is a good example of how to use social media with a bit of light humor. Their social presence links Nescafé to playfulness through shareable, quirky content. Their posts, especially on Twitter, focus less on promoting their product and more on

tongue-in-cheek updates, whether related to coffee or not. They’ve been jumping in on trending hashtags and big events, creating a presence fans can follow in part out of brand loyalty and in part to see their take on happenings and social conversation.

4. SHAHID.NET

On the surface, it seems easy for a video on demand (VOD) service to draw in followers and establish a strong social presence but competition is fierce, especially when it comes to recency of programs. One way Shahid managed to distinguish its social presence from that of its competitors was by becoming a hub of interaction about

television series. The strategy was slightly shifted to prioritize a majority of simple, day-to-day engagement posts with fans, in addition to the occasional updates of available series to watch. It was a small change to the overall approach that turned Shahid from a distant VOD platform to the goto “person” to discuss series with. AUGUST 2014

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MARKETING MANIA WORLD CUP OVERVIEW

Brands compete in a tournament of their own By Kareem Chehayeb NIKE AND ADIDAS GO NECK-AND-NECK

The World Cup was not just a competition between 32 of the world’s best football teams. It’s not just about whether Argentina can knock out the Netherlands or if Lionel Messi can outscore Robin Van Persie. It’s also about whether Nike is going to knock out Adidas for first place or whether Puma’s brand is going to expand to make it out of a distant third. The brands used and abused by football teams are important, and it goes way beyond having their logo stitched on a national team’s football kit. Brands like Nike or Adidas sponsoring one of the world’s best football players is a huge deal; seeing Portugal’s Cristiano Ronaldo running around in Nike cleats can mean millions more added to the sports gear manufacturer’s balance sheet. Let’s take a look at Nike’s tactics. Long story short, they’ve been all about sponsoring as many high profile players as possible. Makes 34

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sense, doesn’t it? The more celeb brand ambassadors the better: From the 10 most marketable football players in the world, Nike has bagged six, with Adidas only having three on their roster and Puma just one. Nike’s star player is Real Madrid’s Portuguese superstar Cristiano Ronaldo, awarded the Ballon d’Or in Januarymaking him officially the best player in the world (ending Argentina’s Lionel Messi’s four-year run). While Adidas do have Messi on their roster, Ronaldo has proven to be a much more marketable player, with 28.2 million followers on Twitter as opposed to Messi who surprisingly has less than 2 million. Despite that, Adidas recently retaliated with a sucker punch that arguably took Nike back to the drawing board. After Nike released an impressive ad in late April featuring their stars, including England’s Wayne Rooney, Brazil’s Neymar, and Portugal’s Ronaldo hitting 87 million views as of mid-July, Adidas came back

with an ad of their own featuring Argentina’s Lionel Messi, Holland’s Robben Van Persie, among others in their roster. The ad, released in late May, is approaching 50 million views and viewership grew at a much more rapid rate than Nike’s. Adidas have also had the benefit of having eight of their players make it to the World Cup Final, including German striker Thomas Mueller and Lionel Messi from Argentina. They intelligently set up an Adidasoriented video to promote the final between Argentina and Germany, garnering 14 million views in just two days. It’s a close marketing cup between the two brands, but it looks like Nike will edge out the competition on this

one again. Adidas becoming a greater threat meant that Nike had to pull off something new… like a viral social media trend with a hashtag. Enter Zlatan.

#DARETOWHO?

One of Nike’s footballing stars is Sweden’s Zlatan Ibrahimovic. The versatile and skilled striker, currently playing for France’s Paris Saint-Germain, was missed in this year’s World Cup, with Sweden not qualifying after losing to Portugal during the qualification stages back in November. Ibrahimovic is known for his cocky attitude, and recently made a few absurd statements at press conferences including these

CHARTS © CNN, TOP TO BOTTOM: FIFA, WORLD BANK, UK CENSUS, SPORTING INTELLIGENCE. WRITTEN BY RICHARD GREENE; DESIGNED BY INEZ TORRECNN | ‘FIFA, WORLD BANK, UK CENSUS, SPORTING INTELLIGENCE GRAPHIC NURAL CHOUDHURY

two gems: “The World Cup is nothing without me,” and “An injured Zlatan is a pretty serious thing for any team.” With Ibrahimovic missing the World Cup, and having to make waves that will keep him relevant even during the summertime, Nike flexed their social media skills and combined it with Zlatan’s sarcasm and arrogance creating marketing magic. In March 2014, Ibrahimovic launched his #DareToZlatan trend on his Twitter and Facebook accounts achieving virality in a matter of hours. With his campaign resembling the infamous series of Chuck Norris “facts”, his supporters began to ask him questions about “daring to Zlatan”, expecting witty rejoinders. “Zlatan is just a human. The same way a great white shark is just a fish.” Oh, and a trilogy of videos goes without saying, whether it’s juggling a football with his feet surrounded by the lava of an active volcano or facing a vicious tiger on a mountain top. This is also probably going to increase sales of I Am Zlatan Ibrahimovic, his autobiography. What a way to promote a footballer off of the pitch! While people were occupied with the World Cup, football fanatics who are active on social media were still closely monitoring Ibrahimovic, who was “Zlataning” constantly despite not taking part in football’s biggest event. And to those who doubted Nike with this campaign think of it as such: Could Ibrahimovic be the testing ground for a whole new way of marketing and branding football players? It was relatively risk-free to try it out with a player who didn’t make it to the World Cup. With #DareToZlatan campaign emerging successful, who knows what we might see with other football players in the near future.

ANALYZE THIS CNN’S WORLD CUP Germany’s fourth World Cup victory -its first in 24 years- wasn’t enough for CNN who claim that Brazil should have been victorious at the 2014 World Cup. Instead of focusing on the field, CNN did an overview using information from FIFA, the World Bank, the UK Census and Sporting Intelligence. They created an index and ranked the 32 participating teams averaging three factors: annual

salaries of coaches, population size, and official team rankings. How did they do? Well, Spain and Italy made it to CNN’s top four, but in reality bottomed out in the group stages of the World Cup. Argentina, who were second place, ranked 11th using CNN’s index, and Costa Rica, the underdogs who made it to the quarter finals in the tournament, were ranked at 27. Germany was quite accurate; the champs placed second on CNN’s listing.

WHILE PEOPLE WERE OCCUPIED WITH THE WORLD CUP, FOOTBALL FANATICS WHO ARE ACTIVE ON SOCIAL MEDIA WERE STILL CLOSELY MONITORING IBRAHIMOVIC, WHO WAS “ZLATANING” CONSTANTLY DESPITE NOT TAKING PART IN FOOTBALL’S BIGGEST EVENT.

AUGUST 2014

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CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Going against the grain Stress-management tactics that you haven’t tried By Shoug Al Nafisi

iven that we’re social beings, you’d have to agree that a lot of the stress that we come across in life is intrinsically linked to our relationships. The more interpersonal baggage you’re dealing with, the less you are able to focus on getting the job done. Stress isn’t a oneoff situation, hence the need to be properly managed. If not handled well, it can be a lifelong –or short– problem. One thing leads to another and it can become overwhelmingly negative on so many levels. Consider these four steps

to stop personal stress from getting to you, and getting the better of your work day:

variable is your wanting to make things happen. Take this first step.

Regain your sense of control Sometimes when

Stick to your list of tasks Keep your mental focus

nothing else seems to be running smoothly, the only thing that probably is would be your job- treat it as a safe haven. Knowing that you’re there for the qualities you possess, and to your liking, you’re in a place that both suits you and is suitable for you, you’re undoubtedly in a position of power. Given these relatively fixed conditions, the only remaining

by taking control of what you can actually create, change or improve. We tend to be driven more by matters related to others, and so remember that there are those who depend on your efficiency, effectiveness, and accuracy. Consider this your waking up on the right side of the bed. You can manage a list much better than you can manage a relationship.

Knowing that you’re there for the qualities you possess, and to your liking, you’re in a place that both suits you and is suitable for you, you’re undoubtedly in a position of power.

Channel your energy towards a challenge

Rising to the occasion is not only an accomplishment, but it’s also a discovery of your skill, discipline levels, and determination. It acts as a reaffirmation of what is already there, and an empowerment that is worthy of your attention. Take a moment to take it in, then decide where best to aim that excess energy. Manage a win, then take it home Accept the good

that is happening to you and around you. At times when things are difficult, we tend to go blind to whatever good there is. Whether we like it or not, we tend to choose to stay miserable– I’m not so sure, but it might be the easier way to go. That said, if you get a pat on the back then embrace it; it was well deserved. This is baggage you want to take home with you. In stressful situations, contrary to popular say-so, don’t leave work at the door when you come home especially if it’s the most stable part of your day. This idea may seem to counter popular logic, but don’t nay say it just yet. Your productivity is there for you to lean-on for strength. It’ll give you that push to handle what’s happening on a personal level, and allow you to think more clearly. You aren’t weak anymore, and so you’re confronting the issue while having the upper hand. Most importantly, it’ll teach you how to be resilient, and better handle that kind of stress the next time around. Make the right decisions, and stress might just be your greatest motivator.

Rising to the occasion is not only an accomplishment, but it’s also a discovery of your skill, discipline levels, and determination Take a moment to take it in, then decide where best to aim that excess energy. 36

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business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

A WHOLE NEW WORLD?

DAD CLAIMS LAND IN EGYPT AND SUDAN SO DAUGHTER CAN BE A “REAL PRINCESS” With no shortage of debate about land claims in the MENA region, here’s another one for you to wrap your head around. No, this isn’t about the ISIS agenda or the occupied Palestinian territories, it’s about a little “princess” named Emily. Jeremiah Heaton was asked by his seven year-old daughter whether or not she could ever be a real princess. While most parents would just leave it at child’s play, Heaton researched how he could make himself king, by default making Emily a princess. His tenacious attitude led him to trek to Bir

Tawil, an 800 square-mile area along the border of Egypt and Sudan, and “claim” it by planting a flag designed by his children. Although there have been online claimants to the land, Heaton believes that his physical journey could legitimize his claim and is now apparently seeking “formal recognition” from African countries (Huffington Post). Believe it or not, it’s been left unclaimed because of being unwanted by nearby regions. A 1902 treaty states that Hala’ib is Sudan’s and Bir Tawil is Egypt’s but because both want

the larger region Hala’ib, they only acknowledge the treaty that awards Hala’ib to themleaving Bir Tawil unclaimed. Other controversial (and serious) flag-plantings have occurred in the past decade, but on more of an international scale- in 2007 a Russian submarine placed a flag on the seabed of the North Pole. It caused a bit of a kerfuffleCanadian Foreign Minister Peter MacKay said, “This isn’t the 15th century. You can’t go around the world and just plant flags and say: ‘We’re claiming this territory,’” (The Guardian). According to NBC News, Russian Foreign Minister Sergey Lavrov retaliated publically stating that “whenever explorers reach some sort of point

On the clock

JEREMIAH HEATON IMAGE SOURCE FACEBOOK.COM

Sweden launches six-hour workday experiment The tantalizing and contentious dream of a 30-hour workweek is now a reality in Sweden’s secondlargest city of Gothenburg. A year-long trial will compare two factions of municipal workers- a control group who will stick to a 40-hour workweek and a test group that will have their hours slashed with all salaries remaining the same. The aim of the experiment? Determining whether reducing work hours might lead to increased productivity and fewer sick days. Initially brought forth by the city council’s majority coalition of Social Democrat and Green parties in April of this year, the program officially kicked off in July. Gothenburg’s Deputy Mayor, Mats Pilhem, noted that a Swedish car factory in the city had employed a similar model to great success, but opponents in the city council referred to the proposal as a “dishonest and populist ploy” that would bear no impact on worker quality. A similar experiment involving 250 workers in the Swedish town of Kiruna was scrapped in 2005 after 16 years. With shrinking hours, job pressures intensified

and as a result, the city council concluded that sickness actually increased (The Local). The Swedish government is set to test out a new workday paradigm that may leave hyper-engaged entrepreneurs who work around the clock -and still manage not to accomplish everything- scratching their heads. These types of experiments have taken place in other countries (The Independent), but typically they’ve been nixed as a result of the stigmas surrounding laziness.

CULTURE

Jeremiah Heaton

that no one else has explored, they plant a flag. That’s how it was on the moon, by the way.” The chilly exchange between the two dignitaries sparked international headlines, with The New York Times calling the Russian expedition an “openly choreographed publicity stunt.” Emily and her small MENA kingdom have also made media waves, although we doubt the newly minted nation will have the same long-term implications that the Arctic race will.

Potato Salad Crowdfunding Campaign Goes Crazy Would you help to crowdfund a bowl of potato salad? Even if you won’t back it, tons of other people will. Zack “Danger” Brown from Columbus, Ohio must have been extremely bored when he decided to set up his Kickstarter campaign on July 3. His initial goal was a whopping USD$10 for plain ole’ potato salad. As of July 15, Brown had raised over $50,000. He began by giving away different incentives and perks, letting donors pick certain ingredients to be added to the potato salad, and giving away t-shirts and hats. He even promised to throw a pizza party. “Chef” Zack Brown is also working on a potato salad recipe book, each inspired by the cuisine of one of his international backers. In an interview with the Chicago Tribune, Brown said that most of the money will go to charity after alleviating the costs of owner perks. We get it, the internet loves a laugh. Now in other (serious) crowdfunding news, a team in Montreal are trying to produce and distribute their “Riverlutionary” turbine. The turbine will help generate electricity in impoverished areas near water reserves, which sounds like a great (and worthwhile) concept. Unfortunately, the Montreal hopefuls have only generated $3,416 of their $50,000 goal. Maybe the potato salad peeps could shift some of their support over?

See this article in its entirety at Entrepreneur.com AUGUST 2014

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The Esquire Guy on

getting people to embrace your next big idea By Ross McCammon

his isn’t the kind of meeting where you want something and the other person knows you want that thing. This is about a meeting in which you are the only one who knows you’re trying to win. It’s a secretive thing. You have an idea you know you want to share; nobody but you knows you want to share it. And you need to try to share it at the right time and with the right measure of enthusiasm. The hope is that your idea will seem like a brilliant gift. Because these types of unsolicited ideas often just fizzle. We mistime their introduction. Or we misgauge the climate in the room. Or we don’t couch it in the right way. So, how should you approach this? How do you get your point across without being overbearing and overzealous? How do you win a meeting when nobody else even knows there’s a game afoot? Your eye is on the prize. But in many cases that prize is something

only you are seeing. Which is why you have to persuade people to see it and to agree with it. And persuasion requires subtext and clues, rather than selling. It’s more subtle. (But not wishy-washy.) Studying persuasive tactics in meetings was a key part of research conducted by Cynthia Rudin, associate professor of statistics at the Massachusetts Institute of Technology, and Been Kim, an MIT Ph.D. candidate. They found that it’s possible to predict how an idea will be received by studying the language used to deliver it. Proposing an idea that agrees with what has been said in the past usually leads to a “Hell, yeah!” from all parties. In fact -and really, this is true- proposals that include the word yeah tend to do well because they show agreement with other people in the room. This is the key bit of etiquette of a meeting (and, frankly, anything involving working with people): acting like you’re on a team.

KEY TECHNICAL MATTERS YOUR EYE IS ON THE PRIZE. BUT IN MANY CASES THAT PRIZE IS SOMETHING ONLY YOU ARE SEEING. WHICH IS WHY YOU HAVE TO PERSUADE PEOPLE TO SEE IT AND TO AGREE WITH IT.

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> Sit up straight. > Straighter. > OK, now you’re standing. > Sit back down and seem vigilant, attentive. > This suggests respect for all other ideas being floated, so your idea will be couched in respect and will elicit more approval because of it. > Timing isn’t everything. > But it’s pretty important. > No interrupting anyone in order to voice your idea. > If your idea does not pertain to the subject at hand, do not voice it.

> The most compelling ideas seem to serve everyone in the room. > Or better yet: the business. > An idea should be framed as an agreement with ideas already floated. It should put you on the side of the collective. > Never “float” an idea. Launch it, push it into the stream, yell at it with a bullhorn until it scowls at you. But don’t float it. If an idea is merely floated, then it appears to be dead in the water, even if it’s good. > Anticipate three different

challenges to your idea. And have answers ready. > Always offer a segue from someone else’s idea to your own. A simple bridge, such as … > That’s a great point, Kyle. You made me think about another approach. > I like what Kyle said. Here’s something else along those lines. > Kyle, I’m listening, and I’m loving, and if you’ll allow me to attach a caboose to that train you’re driving… > Your idea should not be a caboose.

For what it’s worth, here’s a full list of words that Rudin and Kim found to be associated with persuasiveness: yeah, give, menu, start, meeting, touch, discuss, find, market, yellow, work, good, fruit, logo, people, side, number, presentation, things, chip, stick, gonna, information, talk. So if you really want to lock things down, here’s the best proposal ever, scientifically speaking: “Yeah, Kyle makes a good point in his presentation about the fruit market. But I want to give you something else to discuss. Two words: chip stick. It’s information. It’s gonna work. It’s gonna touch your heart. It’s gonna start things.” (Rudin had no comment on the wisdom of this proposal.) Now, back to your little secret: Your idea may be accepted on its merits, but that acceptance will be curbed by suspicion about just what it is you’re up to and what team you’re really playing for- the team or your team (i.e., a team of one). The key to keeping the team stink eye at bay -and to prevent anybody from leaving a “There’s no ‘I’ in team” mug on your desk- is graciousness. Even selflessness. The key is to let others’ ideas be the context for your own. Says Rudin: “I don’t think there’s anything you could do to truly ensure that you’re

going to ‘win,’ but at least you can increase the chances by understanding [your peers’] goals and framing your suggestions as agreements.” Daniel Putterman, co-founder and CEO of online storage service Pogoplug, says another crucial part of presenting an idea is the preparation you undertake before walking in the room. “An obvious component of any meeting is knowing what you want,” he says. “That’s the easy part. What’s substantially more critical is knowing what your counterpart wants.” The key is learning as much about the company and the individuals in the meeting as you can. “I think people underestimate the power of that,” Putterman points out. “You’re saying, ‘You are important to me.’” And if you’re saying that, you’re saying, “I agree.” You agree that this is a team, and that good things are going to happen. And you agree that your idea is but one good idea in a landscape of good ideas. What a view. So, you’ve set the stage. You’ve established the context. People are listening. They’ve been flattered by your attention and agreement. The tough part’s over. They’re on your side. They’re ready for the idea. All you have to do now is say it. See this article in its entirety at Entrepreneur.com

THE MEETING-WIN GAUGE SMALL WIN

Least important person in room perks up

BIG WIN

Most important person raises both eyebrows

Most important person in room raises a single eyebrow

Most important person opens eyes wide

Most important person laughs (with you, not at you)

Most important person squints, as if imagining idea in place

Most important person squints, as if wondering if idea would work

Most important person tells least important person to wake up and listen to this

Most important person nods head

Most important person smiles, shakes your hand and says, “Well done.”

Most important person starts pontificating about the business

Streamers and confetti (metaphorical)

1950s talent yells out, “It’s gold, I tell ya! Gold!”

AUGUST 2014

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Traduttore, Traditore*

Interpretation vs. translation Which is right for your business? By Maria Elena Kassab

hen thinking about ways to make international business easier, the legend of the Tower of Babel often springs to mind: Wouldn’t it be easier if we all spoke one language? Unfortunately for the business world – and fortunately for cultural diversity– that is not the case, even though some languages (such as English) are spoken more or less fluently by a growing number of businesspeople. When the language barrier becomes too great, the only solution is to transfer information from one language to another, by way of a translator or an interpreter.

And here lies the one question people often forget to ask themselves: Does your business need translation services or does it need interpretation services? What is the difference between an interpreter and a translator, what do they do, and when should you turn to one and not the other? As a general rule, translators and interpreters both start off at the same point in university usually taking the same courses Contrary to popular belief, not all interpreters look like Nicole Kidman in 2005 blockbuster, The Interpreter. They don’t uncover assassination plots, and they don’t necessarily save the world.

for the first three to four years. After earning a BA in Languages, they are split. The translators keep taking translation classes for two years to earn a MA in Languages and a Translator’s Diploma. Those who want to become interpreters have to pass an entrance exam, performing oral tasks before a jury- they are tested for speed of thought under stress, personal culture, and language skills; they then take oral translation classes and earn their MA in Languages, and an Interpreter’s Diploma. What’s the difference?

While both translators and interpreters work with languages their tasks differ: Translators convert written material

from one language (the source language) to another (the target language), while interpreters perform the same task orally. It is imperative to understand that most interpreters do translation work, but translators are not interpreters. It takes training and experience to be able to perform simultaneous interpretation. It is also necessary to understand that some translators become highly specialized in a certain field of work, which makes them the best choice for specific types of translation such as sensitive legal subjects or precise medical reports. Some translators do liaison interpretation, which ensures communication between two people or among a small group. However, some translators have posed as simultaneous interpreters, only to come into the booth and flounder about, unable to keep up with a speaker.

Translators convert written material from one language (the source language) to another (the target language), while interpreters perform the same task orally.

Translators In most cases, translators work on various types of written documents including legal and governmentissued paperwork (birth certificates, ID cards, court transcripts), literature (novels, manuals), and in creative spaces (movie subtitling), and mediums like newspapers, news agencies, websites… They work within deadlines, generally charge their clients per word or per page, and can become sworn translators to work on official documents. Interpreters There are two main types of interpretation: simultaneous (usually

*Translator, traitor An old Italian proverb, which warns people of untranslatability, or an utterance for which no equivalent can be found in another language. 40

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performed with interpreting equipment), and consecutive (the interpreter listens to a portion of a speech and then interprets it as the speaker waits in silence). Interpreters usually work in conferences, workshops, international meetings or summits, often traveling constantly for work. They charge per day, and a client will need to pay for their travel and accommodations in the event that the booking requires it. “But I can speak French, can’t I be an interpreter?”

A lot of people all over the world speak more than one language, but they cannot all translate from one of these languages into another. For quality work, one must request the services of someone with a degree in translation or interpretation, and it is sometimes necessary to seek out someone who specializes in a certain field. It is completely irrational to expect a translator or an interpreter to be fluent in every language spoken on the planet. In the GCC, English

most interpreters do translation work, but translators are not interpreters. It takes training and experience to be able to perform simultaneous interpretation.

and Arabic are the two most requested languages, whereas in North Africa French takes precedence in some transactions. In Lebanon, translators and interpreters work into and from, Arabic, French, and English. Some of them learn an extra language and work that into their language combinations. Arabic is not that high on the list of languages requested in Europe, and in parallel, Bulgarian, for example, is not highly requested in the Arab world. Bidding wars

When contacted by a client, both translators and interpreters can offer bids, and the main problem here lies within fee-slashing. In an effort to win over a client –and often in the context of professional rivalry,

Lorem ipsum... what? The story behind the “dummy” text that caught on

If you’re a designer or you work in print media production, you’ll most likely recognize lorem ipsum. Or you may be a client who’s all too familiar with receiving these in prototypes. Believe it or not, since the 1500s, surviving five centuries and the shift to electronic typography, lorem ipsum has been the standard filler text in design worldwide. By having words that viewers don’t understand, people can see how the design and typography will look like when the text is placed without

being distracted by actual text content. Many people think it’s meaningless, but au contraireas it turns out, lorem ipsum is “slightly jumbled Latin”, coming from the fragments of “section 1.10.32-3 from Cicero’s de Finnibus Bonorum et Malorum” (The Extremes of Good and Evil) which starts off as “Neque porro quisquam est qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit”, meaning “there is no one who loves pain itself, who seeks after it and wants to have it, simply because it is pain.” According to Sean Herron of open.NASA, it dates back to 45 B.C. from a thesis on ethics, popular in the Renaissance. The mixed-up version began to be used in the 1500s as filler text.

which can become quite bitter– translators and interpreters will slash their fees and lower their prices ridiculously. This can become a problem when the work delivered is of low quality (on par with the slashed prices). It can also become a problem when clients become used to a certain lower price given by some, and refuse to pay the regular fees for higher-quality work, a problem slowly spreading throughout the MENA region. What not to expect from your translator or interpreter

Contrary to popular belief, not all interpreters look like Nicole Kidman in 2005 blockbuster, The Interpreter. They don’t uncover assassination plots, and they don’t necessarily save the world. Joking aside, you do need to be aware that translators are not human dictionaries. They need context before they can execute word translation, because a term changes meanings depending on whether or not it came from a legal document or a book about magical slippers.

Another common misconception? All interpreters work for the UN- this is not true. They often work as freelancers, and have short-term contracts with clients from various international, regional, and local organizations and companies, and have other jobs teaching languages, translation or interpretation. You should also be aware that not all translators work in subtitling, and not all translators are sworn translators with their own translation offices. They also often work as freelancers, taking on other jobs, such as teaching. Maria Elena Kassab is a freelance conference interpreter and translator, working with clients across the MENA region in English, Arabic, and French. Kassab is also a published writer in both English and Arabic publications, with her portfolio including print and web mass mediums. Connect with her on LinkedIn and follow her on Twitter @ElenaKassab

LOREM IPSUM Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Nam nibh. Nunc varius facilisis eros. Sed erat. In in velit quis arcu ornare laoreet. Curabitur adipiscing luctus massa. Integer ut purus ac augue commodo commodo. Nunc nec mi eu justo tempor consectetuer. Etiam vitae nisl. In dignissim lacus ut ante. Cras elit lectus, bibendum a, adipiscing

vitae, commodo et, dui. Ut tincidunt tortor. Donec nonummy, enim in lacinia pulvinar, velit tellus scelerisque augue, ac posuere libero urna eget neque. Cras ipsum. Vestibulum pretium, lectus nec venenatis volutpat, purus lectus ultrices risus, a condimentum risus mi et quam. Pellentesque auctor fringilla neque. Duis eu massa ut lorem iaculis vestibulum.

Today, the many online lorem ipsum generators are joined by fun filler text generators like Space Ipsum (NASA’s project of creating filler text based on archival space quotes), Whedon Ipsum (quotes from TV and

Maecenas facilisis elit sed justo. Quisque volutpat malesuada velit. Nunc at velit quis lectus nonummy eleifend. Curabitur eros. Aenean ligula dolor, gravida auctor, auctor et, suscipit in, erat. Sed malesuada, enim ut congue pharetra, massa elit convallis pede, ornare scelerisque libero neque ut neque. In at libero. Curabitur molestie. Sed vel neque.

film works of Joss Whedon like Buffy the Vampire Slayer and Angel), and finally, Cupcake Ipsum (words like marshmallow and chocolate). Lorem ipsum is now art for art’s sake: ars gratia artis. By PamelLa de Leon AUGUST 2014 August

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THE POWER OF ARCHITECTURE HOW THE WORLD AROUND YOU SHAPES YOUR THOUGHTS AND ACTIONS By James Clear

n 1952, polio killed more children in America than any other communicable disease. Nearly 58,000 people were infected that year. The situation was on the verge of becoming an epidemic and the country desperately needed a vaccine. In a small laboratory at the University of Pittsburgh, a young researcher named Jonas Salk was working tirelessly to find a cure. Years later, author Dennis Denenberg would write, “Salk worked sixteen hours a day, seven days a week, for years.”

Adobe office campus in Utah

Despite all his effort, Salk was stuck. His quest for a polio vaccine was meeting a dead end at every turn. Eventually, he decided that he needed a break. Salk left the laboratory and retreated to the quiet hills of central Italy where he stayed at a 13th-century Franciscan monastery known as the Basilica of San Francesco d’Assisi. The basilica could not have been more different than the lab. The architecture was a beautiful combination of Romanesque and Gothic styles. White-washed

brick covered the expansive exterior and dozens of semicircular arches surrounded the plazas between buildings. Inside the church, the walls were covered with stunning fresco paintings from the 14th and 15th centuries and natural light poured in from tall windows. It was in this space that Jonas Salk would have the breakthrough discovery that led to the polio vaccine. Years later, Jonas Salk would say that “the spirituality of the architecture there was so inspiring that I was able to do intuitive thinking far beyond

any I had done in the past. Under the influence of that historic place I intuitively designed the research that I felt would result in a vaccine for polio. I returned to my laboratory in Pittsburgh to validate my concepts and found that they were correct.” Today, the discovery that Salk made in that Italian monastery has impacted millions. Polio has been eradicated from nearly every nation in the world. In 2012, just 223 cases were reported globally. Did inspiration just happen to strike Salk while he was at the monastery? Or was he right in assuming that the environment impacted his thinking? And perhaps more importantly, what does science say about the connection between our environment and our thoughts and actions? And how can we use this information to live better lives? THE LINK BETWEEN BRAINS AND BUILDINGS

Researchers have discovered a variety of ways that the buildings we live, work, and play in drive our behavior and our actions. The way we react and respond is often tied to the environment that we find ourselves in. For example, it has long been known that schools with more natural light provide a better learning environment for students and test scores often go up as a result. It’s worth mentioning that natural light and natural air are known to stimulate productivity in the workplace as well. Additionally, buildings with natural elements built into them help reduce stress

BUILDINGS WITH NATURAL ELEMENTS BUILT INTO THEM HELP REDUCE STRESS AND CALM US DOWN. SPACES WITH HIGH CEILINGS AND LARGE ROOMS PROMOTE MORE EXPANSIVE AND CREATIVE THINKING. 42

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adobe office campus image rapt studio | GRAND PIXEL CORPORATION IMABE O+T

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Grant Pixel Coroporation

and calm us down- think of trees inside a mall or a garden in a lobby. Spaces with high ceilings and large rooms promote more expansive and creative thinking. So what does this link between design and behavior mean for you and me? CHANGE YOUR ENVIRONMENT, CHANGE YOUR BEHAVIOR

Researchers have shown that any habit you have -good or bad- is often associated with some type of trigger or cue. Studies have shown that these cues often come from your environment. This is important because most of us live in the same home, go to the same office, and eat in the same rooms day after day. And that means you are constantly surrounded by the same environmental triggers and cues. If your behavior is often shaped by your environment and you keep working, playing, and living in the same environment, then it’s no wonder that it can be difficult to build new habits. The research supports this. Studies show that it is easier to change your behavior and build new habits when you change your environment. If you’re struggling to

think creatively, then going to a wide open space or moving to a room with more natural light and fresh air might help you solve the problem. (Like it seemingly did for Jonas Salk.) Meanwhile, if you need to focus and complete a task, research shows that it’s more beneficial to work in a smaller, more confined room with a lower ceiling (without making yourself feel claustrophobic, of course). And perhaps most importantly, simply moving to a new physical space -whether it’s a different room or halfway around the world- will change the cues that you encounter and thus your thoughts and behaviors. Quite literally, a new environment leads to new ideas. PUT THIS INTO PRACTICE

In the future, I hope that architects and designers will use the connection between design and behavior to build hospitals where patients heal faster, schools where children learn better, and homes where people live happier. That said, you can start making changes right now. You don’t have to be a victim of your environment. You can also be the architect of it. Here’s my simple two-step prescription

IF YOU NEED TO FOCUS AND COMPLETE A TASK, RESEARCH SHOWS THAT IT’S MORE BENEFICIAL TO WORK IN A SMALLER, MORE CONFINED ROOM WITH A LOWER CEILING for altering your environment so that you can stick with good habits and break bad habits: 1. To stick with a good habit, reduce the number of steps required to perform the behavior. 2. To break a bad habit, increase the number of steps required to perform the behavior. Some examples? •Want to watch less TV? Unplug it and put it in a closet. If you really want to watch a show, then you can take it out and plug it back in. • Want to drink more water? Fill up a few water bottles and place them around the house so that a healthy drink is always at hand. • Want to start a business? Join a co-working space where you’re surrounded by dozens of other business owners. These are just a few examples, but the point is that

shifting your behavior is much easier when you shift to the right environment. Stanford professor BJ Fogg refers to this approach as “designing for laziness.” In other words, change your environment so that your default or “lazy” decision is a better one. By designing your environment to encourage the good behaviors and prevent the bad behaviors, you make it far more likely that you’ll stick to long-term change. Your actions today are often a response to the environmental cues that surround you. If you want to change your behavior, then you have to change those cues. A version of this article was first published on JamesClear.com

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 AUGUST 2014

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HANG ON TO YOUR MOST VALUABLE BUSINESS ASSET

HUMAN CAPITAL STATS AND REMEDIES FOR EMPLOYEE TURNOVER IN THE MIDDLE EAST By Suhail Al-Masri

here’s no doubt about it: Today’s employees are harder to retain, and the majority of professionals in the Middle East seem to agree on this point as well. In fact, 60.2% of those who took part in Bayt.com’s Employee Retention in the MENA Workplace poll (February 2013) said that, compared to previous generations, employee retention now is lower. Employee turnover is a hot topic in today’s workplace and HR circles, and leading organizations recognize the importance of actively measuring, monitoring, and maximizing the level of loyalty and engagement amongst their employees and ensuring it is not left to chance.

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The Bayt.com Workplace Dynamics in the MENA Region June 2013 poll points out several trends among professionals in MENA with regards to their job search, top industries and HR trends, why professionals would leave their job, and what they most desire from an ideal job and manager. Challenge is obviously important, as 17.5% saw no clear advancement path in the organization which prompted them to leave their job. In their next job, the majority of professionals (20.3%) are looking for companies that will help them develop their skills and provide learning opportunities and training programs. Eight out of every 10 respondents (81.6%) have an online CV and professional public profile, and 96.6% are always open to new career opportunities. According to this poll, the industries that are seen to attract the most talent are oil, gas and petrochemicals (30.2%), followed by information technology (IT) and telecommunications (24.1%). The poll, Employee Retention in the MENA Workplace, found that most professionals in the region claim that the average amount of time they have spent in a job is no more than five years: 27.7% have stayed between two to five years, 20.5% have stayed for no more than two years, while 22.2% have stayed for an average of less than one year in a given job. While a whopping 54.7% state that they want to leave their job immediately, only 16.4% intend to stay in their

EMPLOYEE RETENTION IN THE MIDDLE EAST AND NORTH AFRICA REPORT BAYT.COM

current job until retirement. 36.8% of respondents hope for career longevity and would never want to retire, as per the Employee Retention in the MENA Workplace poll. Interestingly, the departments with the highest turnover in the MENA region are Sales and Marketing (43.9%). IT comes second on the list at 14.3%. Providing a more competitive salary is considered the most important fac-

tor in employee retention by 26.6% of respondents, followed by performance recognition (17.7%) and good manageremployee relationships (17.6%). Nine out of 10 (86.1%) also state that having higher levels of job security will improve retention rates. The Bayt.com Employee Motivation in the MENA survey (January 2013) data indicates that 47% of professionals in the MENA consider recognition of oneâ&#x20AC;&#x2122;s work the key element

that drives motivation, closely followed by training and development (45%) and career advancement opportunities (42%). Training is very, very important. In fact, the aforementioned Workplace Dynamics in the MENA poll shows that the majority of professionals (20.3%) are looking for companies that will help them develop their skills and provide learning opportunities and training programs. Surprisingly, only 19% look AUGUST 2014

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for a good work environment. In light of these numbers, employers in the MENA should recognize the importance of fostering an environment of growth and learning to bring out the best in their employees. Companies can develop in-house training departments, ally themselves with special training houses and universities, send employees to relevant external training programs, offer internal rotational programs and overseas assignments as a key career development opportunity, and commit 46

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ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

to their employees learning and development in a multitude of other creative and meaningful ways. Besides the company’s training activities, career plans and professional development opportunities should be routinely discussed and formalized. Employees that feel the company has invested in them in this manner are far more likely to remain loyal to their company. The November 2012 Work Satisfaction in the MENA poll demonstrates that management style also plays a significant role in em-

ployee levels of satisfaction: 27.6% feel that management in their company is unprofessional, 36% confirm that communication channels are open but not enough, and 39.2% don’t feel there are enough opportunities for advancement and promotion at their company. Conducted in February 2014, What Makes a Company an Attractive Place to Work?, a poll by Bayt.com reveals that half of the poll’s respondents would rather work at a company where they feel the work they do is part of a greater

purpose, with 22.6% wanting to believe in the company’s mission, vision and/ or values. According to the results, a company that provides opportunities for professionals to do their best while leading them on a successful career path is most appealing to 19.7% of polled professionals; companies that provide training and development opportunities, and also companies that encourage new ideas and innovations appeal most to one out of 10 respondents, respectively. For seven out of 10 respondents (65.6%), all of the aforementioned criteria are equally important. Basically four elements are the ticket to staff retention and happiness: open

Suhail Al-Masri is the VP of Sales at Bayt.com. Al-Masri has more than 20 years of experience in sales leadership, consultative sales, account management, marketing management, and operations management. His mission at Bayt.com goes in line with the company’s mission to empower people with the tools and knowledge to build their lifestyles of choice.

Workplace Dynamics in the Middle East and North Africa

WORK SATISFACTION IN THE MIDDLE EAST AND NORTH AFRICA REPORT BAYT.COM | SIGNS OF CHANGING WORKPLACE DYNAMICS IN THE MIDDLE EAST AND NORTH AFRICA REPORT BAYT.COM

Signs of the Changing

communication channels, a clear career path, good training opportunities, and a competitive pay are absolutely vital for smooth sailing in a business. These are the pillars of employee loyalty in your company. Listening to employees’ opinions and feedback is a surefire way to communicate your appreciation and respect. Learn from them what they hope to contribute to the business, how they see the business moving and improving, and where they see themselves down the line. Having the opportunity to share their thoughts and ideas and the authority to take decisions that relate directly to their roles are great boosters for both self-esteem and job loyalty.

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WILD CAT IMAGE © BOSTON DYNAMICS

Wild Cat, Boston Dynamics

Forget the Irish,

THE ROBOTS ARE COMING The evolution of artificial intelligence Golnaz van Huyssteen

ROBOTS WITHOUT FEELINGS, VISIONARY RAY KURZWEIL, AND EVERYTHING ELSE IN THE QUICKLY ADVANCING SPHERE THAT YOU DON’T KNOW ENOUGH ABOUT By Rani Nasr 48

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perations Manager of the Robot Technology Exhibition (RTEX), Golnaz van Huyssteen, discusses the what, who, and when, of A.I., and how it’s going to change pretty much everything. The upcoming event takes place this fall at The Meydan, Dubai. From September 28-30, 2014, RTEX will present the latest and greatest in Robotic Technologies (RT). This year, RTEX is “focused on industrial automation, town automation (Smart City Concept), logistics and material handling, unmanned and remotely-controlled systems, and healthcare and consumer robots.” Optimistically, van Huyssteen says that commercially the implications are worth taking seriously, and there is money to be made in the industry, especially in the region. “Robotics in the Middle East has been gaining steady ground in the last few years

and have shown huge potential for growth and new investment opportunities. According to the International Federation of Robotics (IFR), by 2015 the worldwide robot sales is estimated to increase by 5% on an average as a result of the opening up of huge consumer markets, including the Middle East region.” In terms of the GCC, she adds that the UAE in particular is distinguishing themselves in the sphere. The Gulf nation is at the forefront of growth “with the implementation of new robotic and automation solutions across various sectors, creating employment opportunities, attracting international investors, and catapulting the Emirates to becoming the robotics hub of the region.” One recurrent problem that came along with many technological trends that emerged during the past century is sustainability. We’ve all heard of robots being built to clean the air, and filter the water; is RT the solution

Golnaz van Huyssteen

to environmental health and welfare? “Our objectives for organizing this exhibition are to educate and raise the awareness of a technology that we believe can provide solutions to a smarter and more sustainable way of living.” www.rt-exhibition.com

Q ++ A Q A

ROBOT RUNDOWN

FOR THOSE ONLY FAMILIAR WITH ROBOTS THROUGH SCI-FI FLICKS, CAN YOU BRIEF US ON THE SCIENTIFIC STATUS QUO OF RT?

For the first time in human history, mankind has the ability to delegate most of the tasks it performs on a daily basis to robots. It has reached to a point where without the use of RT, we will notice a significant change in the way we live our daily lives. We have robotic surgeries being performed with limited human intervention. Humanoids and Androids like Asimo and Robina can run, climb stairs and perform everyday tasks. Companies such as Boston Dynamics with Big Dog and Petman are pushing the boundaries to what robots can do. Robotics is even making disabilities a thing of the past with advanced exoskeletons and robotic limbs that bear a striking resemblance and feel like real limbs. Equally advanced are industrial robots that are implemented

“I’M A REAL BOY!”

ROBOT FOOLS JUDGES INTO BELIEVING HE’S A LIVING, BREATHING BEING Remember those MSN messenger chatbots that you were once curious or bored enough to chat with? Back then, it was fairly obvious when you were conversing with a bot, but times have changed… drastically. At UK’s University of Reading, a computer bot named “Eugene Goostman” deceived judges into thinking it was a 13-year-old Ukrainian boy, becoming the first computer ever to pass the Turing Test. Conceptualized by Alan Turing in the 50s, the Turing Test proposes that if 30%

RTEX 2013 competition

for manufacturing processes, or Automation Systems that can run and control entire processes in a building, power plant, commercial business etc. There are a few major differences between these robots and the ones in movies: firstly, robots lack the technology needed to experience and exhibit human like emotions. Complicated human emotions such as love, empathy, sympathy etc. are quite difficult and complex for A.I. (Artificial Intelligence) to comprehend. Secondly, they do not have a capability to make decisions freely, in other words their logic is programmed and can only operate on that pro-

of people can’t determine a human from a machine during conversation, it could indicate that the machine is able to “think” (The Wire). The test was a conversation with no scripts or topics, designed to stimulate a free-flowing conversation with a human stranger. If onethird of judges think it is human, the bot passes the test. Previous attempts to demonstrate the ability to “think” have failed to convince judges, until the Eugene Goostman incident. The brainchild of computer engineers led by Vladimir Veselov and Eugene Demchenko, Goostman’s identity consists of liking hamburgers and candy, having a dad who is a gynecologist, and his significant age -helping him pass off claiming to know everything, yet not actually knowing everything– which the

grammable logic. And thirdly, real robots cannot be good or evil, they will be what they have been programmed to be. DO YOU THINK WE ARE READY FOR SUCH A DRASTIC CHANGE IN HOW WE GET THINGS DONE?

Robotics is one of those technologies which has been operating and making our lives better behind the scenes. In the UAE, robotics has already been implemented throughout, especially in the past five years. Robotics and Automation are common in the UAE especially in the fields of energy generation, mass transit (Dubai Metro), parking management

judges would credit to youth, not a lack of humanity. It’s still far from the likes of the movie Her (see more about that in this feature), but it’s another baby step closer to having a relationship with A.I. don’t you think?

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systems (DIFC’s robotic car park), government and security services (drones for border surveillance and deliveries), logistics and infrastructure (automated warehouses) etc. As such, further investment will not cause a drastic change in our way of life but further improve our lives through various means. From your experience with RTEX, can you tell us about your personal favorite robot and what it does?

I’m absolutely fascinated with drones and other unmanned systems. There is no better or faster way to bring food and medicine to remote areas; there is no other way to survey our deep oceans than with a

remotely operated underwater vehicle; there is no chance for human error in an unmanned train. Sadly, due to their use for military purposes, drones in particular have a bad reputation, which I’m sure will change within the next one or two years when they will be more and more implemented for civilian and commercial use. RT is proving its money’s worth when big companies such as Google spend billions to acquire companies like Boston Dynamics and many others that have focused their efforts on manufacturing somehow shocking life-like robots. Can you give us some insights

on the future of RT where robots like Big Dog are worth billions of dollars?

One of the fundamental points of the robotics industry is to make the technology applicable and feasible for usage on a daily basis. That is why I don’t think robots such as Big Dog or Asimo will be worth billions of dollars. I’m sure the cost of research and development will increase as the demand for robots increases, but with this increase in research and development, there will be steps taken to ensure it is feasible and economical to operate thus increasing and encouraging the usage of robotics. Over the next few years, the focus will definitely shift away from implementing robots for mili-

tary use towards their use for commercial and manufacturing purposes. The implementation of robotics and RT will yield significant results in the areas of medicine, exploration, commercial purposes like energy generation, and civil service. In the right hands, I don’t anticipate any negative side effects; human life will become safer, more flexible, smarter and

THE IMPLEMENTATION OF ROBOTICS AND RT WILL YIELD SIGNIFICANT RESULTS IN THE AREAS OF MEDICINE, EXPLORATION, COMMERCIAL PURPOSES LIKE ENERGY GENERATION, AND CIVIL SERVICE.

BIG DOG IMAGE © BOSTON DYNAMICS

Big Dog, Boston Dynamics

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more sustainable. Ray Kurzweil’s Law of Accelerating Returns states that technology is advancing at an exponentially increasing speed. Sophisticated technology “set in a world of rapidly accelerating progress leads to the emergence of more sophisticated technologies separated by shorter and shorter time intervals, until a point beyond

human comprehension is reached.” How does this apply to the robotics industry?

Ray Kurzweil

In his 2001 The Law of Accelerating Returns essay, Ray Kurzweil implies through his law that a technological singularity will occur in our lifetimes- in 2045. The singularity is a point where machine intelligence will surpass human intelligence. The Law of Accelerating Returns has a direct implication

Joaquin Phoenix’s Her might be closer than you think Ray Kurzweil is building your cybernetic super best friend

RAY KURZEIL IMAGE SOURCE THE COMMONS | HER MOVIE POSTER COURTESY ITALIA FILM

e’ve all been in debates about smartphone superiority: Apple vs. the Google phone. Except for the hardcore fanatics, we have given up on finding out which is better and left the device war to unfold on its own. It was quite amusing for a while until recently, when things got a bit creepy. Over a span of few weeks, we heard about Google acquiring eight robot companies, one A.I. company, and selling Motorola Mobility for a price significantly lower than what they paid for it back in August 2013. What exactly is going on? The answer is Ray Kurzweil. For those of you unfamiliar with the name, you’re definitely familiar with one of his many inventions. Kurzweil is the genius behind everything from music synthesizers (when a keyboard makes a violin sound and so on), to speech recognition programs. Renowned for his Law of Accelerating Returns, stating that technological change builds on technological change to produce even faster technological change, Kurzweil posits that technologies allow other technologies to exist. An easy example of this is that the transistor allows the computer to exist and the computer allows data storage to exist and data storage

will allow A.I. to exist and so on. There is also an equation that computes the rate of processing power per dollar value over time, which Kurzweil maintains has been accurate for the past 30 years. Kurzweil joined Google in December 2013, shifting the tech battle from producing userfriendly, colorful smartphones into who can develop a bigger (and badder) A.I. faster- ultimately achieving singularity and transhumanism. After being a well-established entrepreneur and futurist for decades, Kurzweil decides to get his first job at a company he doesn’t own. Why? Probably because one billion people use Google’s engine and devices on a daily basis. It is the number

one influencer on the planet, and the main data collector of human behavior. He who has the knowledge has the power. Kurzweil claims his main aim is to leverage human knowledge, and Google is the only company in the world with the capacity of infinite data, coupled with funds and steely-eyed ambition. One of the first projects Kurzweil is building at Google is dubbed a “cybernetic friend” who knows you better than you know yourself: “I envision in some years that the majority of search queries will be answered without you actually asking,” he stated during a lecture at Singularity University’s NASA campus. How is this all going to happen? The general direction of Kurzweil’s work is detailed in his book How to Create a Mind. The basic premise is that all knowledge is hierarchical and the neocortex found in mammals has only just evolved to understand and decipher the structure of the world. By reverse engineering its mechan-

ics, Kurzweil aims to create a digital mind that not only understands data, but can also analyze it and communicate in human language. So instead of Google simply answering your caveman queries, it’ll be able to know why you’re interested in that topic in the first place, and give you answers for things you didn’t even know that you wanted to know (but will ultimately help to serve your purpose). Would you want a cybernetic best friend that knows everything about you, and is able to give you advice on how to become the best version of yourself using the combined sum of all human knowledge? Tempting as it may sound, Google now knows more about you than you. And of course there is still the unanswered question, what are the robots for? We’ll have to wait and see, unless of course our cybernetic best friend can work it out logically for us- and let’s hope it will be a lot less captivating than Joaquin’s Samantha. AUGUST 2014

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LS3, Boston Dynamics

on the robotics industry, and at the current rate of technological breakthroughs, we can see that there is merit to Kurzweil’s law. If one studies the robotic industry and the rate and speed of development from the development of the first autonomous robot in 1948 to today, we can see that the rate of development has more than doubled in the last 10 years. I am certain that in the not so distant future a point will come when A.I. is far greater than human intelligence, and what effect this will have on mankind no one can be sure. For right now, it is beyond comprehension and is the stuff movies are based on. Will there be programs to encourage spreading the robotics building knowledge over the Middle East?

The RT sector is one that goes beyond borders; it is a truly global industry with new advancements and ideas coming from all over the world. The main contributors right now are the MIT Robotics lab, Carnegie 52

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Mellon University’s Robotics Lab, Boston Dynamics, Kuka, Honda, and Toyota Robotics. These research labs and companies are on the forefront on the development of RT with announcements about research milestones or revolutionary new robots being released almost on a daily basis. As of now, there has been limited support from governments of the region to acknowledge the importance of robotics in the Middle East. In time this will change, but right now there is an increasing trend to address this issue and we are seeing that there are signs that the Middle Eastern governments are starting to take notice. It’s quite a different story when you look at the private sector. The education sector has noticed the significant interest and hence, various companies offer internationally certified robotic-based educational programs to schools and universities, and this in turn creates young enthusiastic innovators and inventors that will be key to the success of the robotic industry in the region.

HIGH HOPES

Abu Dhabi Media Summit 2014 With the Middle East’s media and entertainment industry the sixth fastest growing market at 10%, can we expect Abu Dhabi to eventually become a regional media hub? The fourth edition of the Abu Dhabi Media Summit is taking place from November 18-20 at the Rosewood Hotel organized by twofour54, Abu Dhabi’s Media Zone Authority. This year’s theme? “Driving and Sustaining Future Media in MENA and Beyond.” The organizers hope that this will be high-attendance edition, having lured homerun names like Bill Gates, Rupert Murdoch, and James Cameron for previous summits. The future of media is definitely something to keep an eye on, with technological innovations playing a huge role in the industry’s swift evolution. We’ll see you there!

TECH

REACHING THE KEY SEGMENT

du courts the UAE SME crowd Q+A du Chief Commercial Officer Fahad Al Hassawi

The number of businesses using du services is reportedly over 90,000. What percentage of duâ&#x20AC;&#x2122;s B2B client is SMEs?

A majority of our base in the business market constitutes of SME customers. We have had great success and traction with the SME customers because of our clear SME strategy. Our value propositions, products, marketing to the SMEs and our distinct channel strategy has helped us gain an excellent traction with our customers. On the product portfolio side we are clear leaders. We have constantly brought in new innovations which has been in line with the SME needs.

What services are being utilized most?

Mobility contributes about 70% of our revenue and there has been growth across both voice and data. The data growth has been super but we believe that there is more opportunity on this space. We also have a good traction on our Fixed and Broadband services, we are only limited by our reach in this space. IPTV has been growing steadily as well. We had good

success on the subscription of our TV services because of the FIFA World Cup. We now have a small factor of our revenues coming from few managed and cloud services. This is an opportunity of growth for us, and in the coming two to three years the revenue from these services will grow at a healthy percentage.

How did du determine what amount of each facet of the SME plans would be best for their business clients?

What is important to us is that we create value for our customers and yet at the same time create value for the company. We continuously speak to our customers to understand their changing needs, we follow the trends that affect the marketplace, we take feedback and inputs from our customers and partners in the design of our products, we also look at the pricing aspects and value aspects that affect the customer, the experience that the customer enjoys and the marketing and sales channels that we deploy to serve our customers. The evolving customer needs

is key for us and we put the customer first in the design of our proposition. We believe that this approach has been one of our key reason of success in the SME segment.

Why has du decided to develop strategic SME plans?

At du, we are constantly looking at new ways of adding value for our customers. We were the first ones in the market to have a clear strategy for the SME segment. In keeping with the same view we came up with a proposition which enables more savings to the du SME customers. If we look at the macroeconomic environment today, there is a positive sentiment in the market, which is leading to the growth of the SMEs in the UAE, leading to more employment. This means more number of lines that the SME customer is subscribing to more business lines from du. Based on this need, we have created this extra value for our SME customers. The feedback from the market is very positive and is in line with always being the first to provide innovative services.

The evolving customer needs is key for us and we put the customer first in the design of our proposition. We believe that this approach has been one of our key reason of success in the SME segment. AUGUST 2014

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READ BETWEEN THE LINES BUSINESS BOOK RUNDOWN By Amal Chaaban

ust because an author demonstrates great sales doesn’t mean their business advice is applicable in the boardroom or even good for practical application otherwise. Our reviewer takes a look at some of the titles getting hype recently and gives you the executive summary. Before you hit the business bestseller aisle, read these reviews to see which of these known books are actually worth your while.

The Curriculum Everything You Need to Know to Be a Master of Business Arts Stanley Bing At first glance, this book looks like a trite, kitschy and useless amount of reading. Once you get past the introductions and into the flesh of the book, you realize that the claims the author makes are not hyperbole. The Curriculum is all practical application and very little business school learning. There are no outlandish claims made about improving your performance, instead Bing cites real-world workplace mistakes and chooses to remedy the instances with

The Confidence Code The Science and Art of Self-Assurance and What Women Should Know Katty Kay and Claire Shipman It seems that every year someone somewhere in publishing decides that we need another book on women, how there’s a lack in female confidence, and what should be done to correct the situation. Unfortunately, 2014 keeps to that tired vein. The Confidence Code is only slightly different than the rest of the crop in that the authors researched genetic and neurological factors that may affect confidence. Kay and Shipman provide several snippets of interviews; the women in turn confess their inner angst and self-doubt, and share how they rose

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above it. There are no real new methods for gaining confidence mentioned, and from what this reviewer could see there are no actual practical applications that serve people on a day-to-day basis. There are plenty of exhortations to do (even if you don’t feel confident), and even more examples of women doing until they felt confident so that’s something redeemable in this book. If they’d included exercises or methodology to actually improve confidence levels, this would have been an all-around better read.

practicality. There are exercises throughout the book and there are amusing anecdotes as wellmaking it a pleasurable read. The standout in this book is that it is removed from a school environment, instead it’s tailormade for the workplace so instructions are simple, direct and easily applied. There is plenty of kitsch (and humor) in this book, but it is undeniably useful advice and practical. Give this as a gift to a person who has no clue as to why they’re floundering in the workplace.

Stress Test Reflections on Financial Crisis Timothy F. Geithner ing a situation, and most importantly, how politics factor into how regulation is established. The particular standout in this book is how many times people complained about Wall Street needing regulation, but lacked political will to do so. Geithner notes one particular case where concerns were voiced about lack of derivative oversights -one of the major causes of the crisis in 2008- only leading to the person’s political evisceration. Read Stress Test before you invest.

If there is anyone out there who is qualified to write about financial crisis, it’s Tim Geithner. As a witness to not just the major crisis, but also to several minor crises leading up to the big 2008 crash, Geithner is able to discuss both the crisis and the subsequent causes of any resulting financial shenanigans. Stress Test doesn’t just rehash old news, it gives new insight into how a crisis is born, how mob mentality (like bank runs by the public) has real influence in worsen-

Think Like a Freak Steven D. Levitt & Stephen J. Dubner Keeping with the theme of Freakonomics and Superfreakonomics, economist Levitt and journalist Dubner have penned a new tome, but this time they discuss how to apply lessons gleaned from the previous two works. With a writing style that is pithy and humorous, topics that are potential conversation-killers (and sleep-inducing) suddenly become interesting. One of the best takeaways from this book that will benefit businesses most is that in order to actually accrue useful data, you may have to experiment and look at

“Accio” royalties

J.K. ROWLING IMAGE © S_BUCKLEY /SHUTTERSTOCK

J.K. Rowling publishes surprise new short story via Pottermore

Potterheads, we’ve got good news for you. (Although if you were a true fan of the wizarding franchise, you’d have known this already.) Bestselling author J.K. Rowling, the bewitching pen behind the Harry Potter series, has published a new short story that takes place years after The Last Battle. Available for readers on the Pottermore website, the story is written from a character’s perspective (gossip columnist Rita Skeeter). The Harry Potter movie series has thus far accumulated over US$1,341,511,219 beating out Star Wars: Episode 1 The Phantom Menance by over $300 million worldwide gross (Box Office Mojo). This, in addition to other income generated from the boy wizard, ranked

things differently. Among the numerous examples throughout Think Like a Freak two stand out most: a meeting the authors attended with current British Prime Minister David Cameron (pre-entering office), and an experiment they requested a company to execute. Both of these instances highlight an unwillingness to change- mostly due to an entrenched belief that changing how something is done too radically is bad. The book is fascinating, and when applied to the world of business, it becomes a critical read.

Rowling on the Forbes list in 2011 only to see her drop off in 2012 after donating an estimated $160 million. Her latest work, The Casual Vacancy, is slotted to become a BBC miniseries, and Rowling is still raking in the royalties from Pottermore, a website that distributes Harry Potter e-books. Rowling held onto the e-book rights rather than signing them over to a publisher, and can count on the merchandise and numerous other revenue streams as wellthere is also the theme park angle to consider. In her newest Potter release, Rowling has written about the globally-revered characters as adults for the first time since Harry Potter and the Deathly Hallows. While the novelist’s spokesperson claims that there are “no plans” for more books (The Bookseller), we can’t help but hope. There may still be a magic trick or two up Rowling’s sleeve, especially since the boy wizard is a moneymaking machine.

J.K. Rowling

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YOUR CORPORATE CREATING CONSUMER IDENTITY UNDERSTANDING SIX BRANDING PRINCIPALS TO TAKE INTO CONSIDERATION WHEN THINKING VISUAL By Marc Kandalaft

he search for meaning and identity has always been and always will be a very deep need. The desire to deliver a specific message to consumers, reflect a contemporary image in the business arena, attract and

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retain clients, and to enter the market competition in this era of globalization generates a strong desire for identification. Globalization in particular generates a strong desire for identification: Imagine 300 million entrepreneurs

trying to launch 150 million new businesses every year of which only one third will see the light of day. The ultimate reason that major market players engage with and work seriously on the identification process? Simply

because brand identity has powerful symbolic value. After almost fifteen years of identity development experience with both small and large firms and multinational corporations from different sectors of activity and across four continents,

Conceptual brand artwork by Marc Kandalaft Design

A BRAND SHOULD BE INDIVIDUALIZED, PATENTED AND CUSTOMIZED, ENABLING THE CONSUMER TO IMMEDIATELY RECOGNIZE THE PRODUCT AND/OR SERVICE IT REPRESENTS.

I would say that to be efficient and results-oriented, brand identity should comply with six principles:

as they ultimately aim to provoke both internal and external adherence and faithfulness.

1. UNIQUENESS AND RECOGNIZABILITY

3. Sustainability and trends

A brand should be individualized, patented and customized, enabling the consumer to immediately recognize the product and/ or the service it represents.

Brand creation should not be dictated by trends. Brand identity cannot merely rely on logos or colors or graphic linessolid identity foundations are required for a lasting formula.

2. Adherence and faithfulness

Business leaders should not limit themselves to mere differentiation. They understand that they have to go further with the brand creation process

4. Adaptability and change

Brand identity is flexible and open to life. Unlike living entities doomed to disappear and die once

they become static and motionless, brands last and outlive. This is not because of their strength or intelligence, but rather because of their innate ability to evolve by embracing change and progress thus persisting durably. 5. Interconnection and coherence

Brand creation is not a patchwork operation, it is an elaborate mechanism. Just like the high precision movements of all the components of a good watch work simultaneously to deliver the correct time,

so must the different elements of an identity work together to build a sharp brand. With this in mind, understand that interconnection and coherence contribute to generating trust in a brand. 6. Universality and niches

In a globalized market where we are all increasingly faced with the difficult challenge of universality, it begs the question: Should brands be able to speak to everyone and in every culture? The more a brand is universal, the greater its edge over the competition. AUGUST 2014

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Conceptual brand artwork by Marc Kandalaft Design

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I strongly believe that observation is among the top qualities required in first analyzing then understanding, subsequently injecting these into design thinking to effectively innovate. Aesthetics -as the result of a delicate, clever and thorough work process- must be accomplished with a great sense of care, grace, and simplicity. I like to refer here to Kenya Hara’s Craftsman’s 58

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Spirit- another facet (that of luxury) which lies in the invisible and in the detail, and ultimately makes all the difference. If science concerns itself with what things are and how things could become, design then is the study and execution of how things should be, making life easier, safer, more effective, more enjoyable, more intelligible, and overall more meaningful.

BUSINESS LEADERS SHOULD NOT LIMIT THEMSELVES TO MERE DIFFERENTIATION. THEY UNDERSTAND THAT THEY HAVE TO GO FURTHER WITH THE BRAND CREATION PROCESS AS THEY ULTIMATELY AIM TO PROVOKE BOTH INTERNAL AND EXTERNAL ADHERENCE AND FAITHFULNESS.

Marc Kandalaft is the founder of the strategic creative bureau of Marc Kandalaft Design (MKD), a multidisciplinary consultancy firm empowering strategy and branding through the mastery of design. MKD is based on a philosophy of reconciling art and industry, commercial efficiency, and creative power, offering branding, design, and communication services. After establishing clientele in the Middle East, Europe and North America, MKD operates mainly in Paris and Montreal, but also frequently in Beirut and New York City for businesses in luxury, commerce, industry, services, cultural affairs, and interior design. Kandalaft attended l’ESAG Penninghen in Paris studying under the tutelage of eminent figures in graphic design and photography such as Roman Cieslewicz, Peter Knapp, Michel Bouvet, and Etienne Robial. In 1999, Kandalaft was conferred his Masters with honors with the title of artistic director in graphic arts and digital design. Kandalaft is a board member of the Society of Graphic Designers of Québec SDGQ, a Member of Mission Design, and acts as a mentor for the HEC Startup Weekend and the Adobe Mentorship Program, in addition to being an active participant in various relevant university conferences across Canada and France.

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THE CREATIVE DISCIPLINES NEED LOOK NO FURTHER For ‘treps in arenas of art and design, it’s time to get familiar with “the scene”: Announced last year, the Dubai Design District (d3) has issued more than 140 licenses for design and luxury businesses to make the upcoming district their home base. Launched by UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum and developed by TECOM Investments, d3’s main

Aerial rendering of Dubai Design District

goal is to act as a “catalyst” for the MENA region’s fashion and design community. Their intention? To foster an environment where local creative talent can prosper... and eventually go global. With UAE’s luxury, fashion and interiors market accounting for Dh23 billion, it’s a market ripe for d3’s vision. To be situated near Dubai Mall, the district will feature collaborative workspaces, galleries and workshops to encourage learning and interaction, with emerging and established alike from the design, fashion and art communities. There will also be pop-up shop areas, design hotels, office spaces and an event space, with the area having touches of distinctive street furniture and public art. To make sure that the new digs are top-notch, the d3 team crowdsourced the design from focus groups and feedback sessions in the UAE during development phase, cultivating ownership from the creative cliques for their potential new creative hub. According to Dr. Amina Al Rustamani, the Group CEO of TECOM Investments, the Dh4 billion project, currently on phase one of three, is set to open their doors in 2015 with phase one (Gulf News). Entrepreneurs in the creative industries, you’ve got time to prep for the launch… now get to work.

Rendering of Dubai Design District

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The Ritz-Carlton Riyadh lobby

Putting KSA on your agenda Ritz-Carlton’s Adel Al Mahboob insists on the executive experience

del Al Mahboob, General Manager of The Ritz-Carlton Riyadh, is big on “thoughtful extras” for their business travelers. Al Mahboob, a 30-year veteran of the hospitality industry, says that 50% of their guests are visiting the Kingdom’s RitzCarlton for business purposes. Those guests, regardless of the purpose of their visit, are pampered; the hotel often refers to the property as “pala-

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tial” and with good reason: it was originally built as a guest palace and then repurposed as a hotel. “Many frequent business travelers across the world have become accustomed to living out of a suitcase, and traveling from country to country or back and forth within the same country as part of their work routine. We try to break that monotony by offering them an experience that they

will always remember, from their exemplary surroundings and luxury services to the thoughtful extras that guarantee a seamless stay for them.” This year alone, the property has hosted a number of regional conferences including the Arab Economic Summit, and conferences for internal governmental agencies like KSA’s Ministry of Higher Education and the Ministry of Defense. A European contingent

was welcomed in March of this year for the 2014 Belgium Economic Mission, focusing on trade relations and opportunities. Al Mahboob, a Saudi National, graduated with a degree in hospitality from Cornell University, and has spent the last three decades in the industry working with both international and regional brands. “Following my time at the Intercontinental Riyadh, I took on the position of General Manager for the Al Direya Palace for Royal Protocol in Riyadh. Al Direya Palace plays host to all the top political delegates, visitors and VIPs to the country. My last role before joining The Ritz-Carlton, was as General Manager for the Crown Plaza Al Khobar.”

Recommended by the GM EXEC STAY “With 49 exquisitely appointed two-bedroom Royal Suites of palatial proportions of more than 425 square meters -each adorned with jewel-toned amethyst, amber, royal blue or emerald schemes- guests can look forward to getting comfortable in relaxed elegance. The spacious suites offer luxury as well as comfort in refined surroundings. Each suite features a living and sleeping area, separate office with working station and dining room that can accommodate up to 14 guests. The suites are equipped with modern-day requisites for the global traveler including iPod

GM Adel Al Mahboob

dock and high-speed internet for seamless gaming sessions. There are also 50 opulent, onebedroom Executive Club Suites of 100 square meters eachideal for senior corporate titans and political delegates.” OPTIONS “The Executive Club Suite guests can take advantage of a number of perks, including a lavish guest experience at the Club Lounge with five-course meals and an extensive beverage menu throughout the day, in addition to enjoying complementary airport transfers. Business travelers are also able to take advantage of the

onsite expertise available in the hotel’s business center, which offers an A-to-Z of services from document binding to photocopying and printing.” CONNECTIVITY “The elegantly-styled rooms and lavish suites fuse luxury with practicality, and come equipped with comfortable working desks, iPod docks, high-speed internet access, flat-screen televisions, and DVD players. Created especially with business guests in mind, Club rooms and Executive Club Suites provide a raft of addedvalue extras including complimentary wireless internet and

Royal Suite bedroom

exclusive 12-hour access to the Club Lounge.” DOWNTIME “Equal attention is given to leisure downtime, with the hotel’s recreational facilities providing much-needed respite at the end of the business day, and including a full-service men’s health club, dedicated male-only spa, and indoor swimming pool. Also Strike Bowling Alley is the perfect place for leisure downtime and for meeting friends; six bowling lanes, a 100-inch TV, PlayStation and billiards means that there’s never any shortage of fun to be had.”

RCR Club Lounge

Executive Suite

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‘Trep trimmings

The executive selection

For the entrepreneur on your list that has a discerning eye, Montblanc has a fine range of executiveappropriate better goods as part of their 90-years celebration. The Montblanc Meisterstück selection includes timepieces manufactured in Villeret and Le Locle Switzerland, and accessories for both men and women designed in Paris.

THE LEATHERS For both

Montblanc Meisterstück soft grain leather range available in black or beige, lined with a Jacquard pattern based on the brand’s 1924 logo. For her

Montblanc Meisterstück slim tote bag with reinforced

handles, externally embellished with the hallmark snow-cap emblem cast in resin. For him

Montblanc Meisterstück wallet, externally embellished with the hallmark snow-cap emblem cast in resin.

Montblanc Meisterstück Soft Grain Collection wallet

Montblanc Monograin Collection in full grain leather cufflinks

Montblanc Meisterstück Soft Grain Collection slim tote bag

DRESS FOR SUCCESS EDITOR’S PICK

For your engagements that call for some impactful (yet elegant) hardwear, opt for suitable cufflinks. A hallmark pair of cufflinks are essential for the executive wardrobe.

MONTBLANC MEISTERSTÜCK CUFFLINKS

A streamlined bar-motif set of cufflinks finished in a red gold-color with discreet etching.

IMAGES

Montblanc Meisterstück Collection 90 Years Collection Cufflinks

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CULTURE

Flight-friendly grooming essentials For her Pink pepper, jasmine and

IMAGES

Chanel for ‘treps on the go

Rather than packing your full-size grooming products for travel (or your gym bag), opt for these handy minis that are small enough to make it past even the most stringent airport security. Chanel’s range of handbag-friendly fragrances come in an ergonomic twist-and-spray format, meaning leakage and accidental sprays won’t be an issue. The aluminum case is presented as one already-full spritzer with two refills, meaning that each of the fragrances come in three 20mL formats for a total of 60mL per package. The best part? The atomizers are safe to place with both your clothing and electronics since a twist is needed to release the spray function.

patchouli are only some of the notes that make Chanel Chance a great staple fragrance. The award-winning original Eau de Toilette is now joined in travel format by Chance Eau Fraîche, a light alternative suitable for extreme summer heat. Chance Eau Fraîche, with notes of Water Hyacinth and citrus, has a different finishing scent than the original, and dries down beautifully. For him For a good staple scent, choose Bleu de Chanel Eau de Toilette. Bleu’s notes of vetiver, sandalwood and cedar (all used throughout history by the finest perfurmers), and the unlikely pink pepper, frankincense and labdanum make it a great go-to scent. For those of you who’ve had enough of the steamy weather, opt for the always-cool Allure Homme Sport Eau Extrême- it’s a fresh take on the original with notes of Moroccan Cypress and Venezuelan Tonka Bean.

Teeing off with distinction

martin kaymer images

We like German golf pro Martin Kaymer dressed to the nines by Hugo Boss while teeing off successfully at the U.S. Open in Pinehurst, North Carolina that took place in June. The 29 year-old champion finished the tournament with an 8-stroke win over the competition and was -9 under par. German design house Hugo Boss is having a great year in terms of “friends of the brand”they also dressed the German football team who took home the World Cup last month.

Martin Kaymer dressed exclusively by Hugo Boss

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TECH

#TAMTALKSTECH Candid cameras for your summer vacay SUMMER IS HERE IN FULL SWING, AND SO ARE THE GADGETS THAT YOU NEED TO CAPTURE AND SHARE YOUR BEST MOMENTS. WHETHER YOU’RE OFF SCALING KILIMANJARO OR CONQUERING A MASSIVE WATERSLIDE, THERE’S A CAMERA TO MEET YOUR NEEDS.

SAFARI SNAPSHOTS FUJIFILM’S FINEPIX XP70

The Fujifilm FinePix XP70 is made for the outdoorsy types: It complies with IP68 standards, making it waterproof up to 10 meters, shockproof, and operates in temperatures as low as -10°C. XP70’s LCD comes with an anti-reflection coating, making it easier to view or capture images in bright sunlight. A great spec of this particular camera? Its 16.4 MP CMOS sensor renders detailed shots making it ideal for outdoor adventure activities… and your leisurely picnic in the park. WATER WONDERS CANON POWERSHOT D30

The Canon PowerShot D30 is the world’s deepest waterproof compact camera delivering impeccable shots at depths as low as 25 meters. The durable body -both slim and lightweight- makes the PowerShot D30 just as good for snowy-scenes, and even hiking. This model includes a special underwater shooting mode and Custom White Balance function for adjusting natural color settings while submerged. Whether capturing photos with the 121 MP HS System or a super slomo movie with Movie Digest, the PowerShot D30 can add a splash of inspiration to your summer memories.

Happiness is a state of flight?

British Airways is measuring customer satisfaction with fiber optic tech British Airways wants to read your mindliterally. The airline has started testing the “happiness blanket”; a blanket woven with fiber optics, using neuro-sensors to measure a person’s brainwaves. It changes color, from red to blue, to show when sleeping passengers are most relaxed. According to British Airways Managing Director Frank van der Post, this tech is being used by the airline to help shape how service is delivered on-

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board aircrafts. Imagine that. Your biological response to inflight services may change how this airline will choose food, schedule their meal times, and even the types of films they opt to show. Traditional surveys are slowly falling out of fashion, and this is one step closely to the future of targeted (and tailored) consumer experiences. The next time you fly with them, sit back, relax, grab a blanket… and give them a piece of your mind.

TECH

You’re flexible! Lenovo flex 2 Lenovo has added the new FLEX 2 to their family of existing dual mode laptops. Available in two models, 14 and 15.6 inch, use it in traditional clamshell laptop mode for high productivity or simply flip the keyboard 300 degrees beneath the screen to transition into stand mode. Lenovo is taking their FLEX range to the next level by providing a

better user experience thanks to advancements in processing, storage and memory. With choices of the latest Intel and AMD processors, three storage options -up to 1 TB of HD or hybrid SSHD storage or up to 256 GB SSD storageyou can also look forward to long battery life. In addition to the fine tuning under the hood, Lenovo has

also given the FLEX 2 a good looking makeover: customize your FLEX 2 with one of five available colors including a hot tamale red and not-so-mellow yellow. Flexing some tech muscle just took on a whole new meaning!

#TamTalksTech Tamara Clarke, a former software development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about

technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves dayto-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette. AUGUST 2014

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IT’S NOT JUST ABOUT STABILITY VS. SPONTANEITY Four ways that being a freelancer is better than being an employee By Youmna Chagoury

’ve been a part-time employee. I’ve also been a full-time employee. And since December 2013, I’m a freelance writer, editor, and translator. I’m glad I’ve spent some time in a regular working structure but I love my freelancer status and I wouldn’t have it any other way. It is so much better than a nine to five job and here’s why:

1. Freedom

2. Time Management

That urban myth that freelancers are the most-free people on earth? It might be urban but it’s not a myth. It’s real. We’re free people; we’re free to live wherever we want without taking into consideration commute time (and discomfort); we’re free to travel the world over for four months if we choose to. We’re free to work on New Year’s Eve and we’re free to say no. We must bear the consequences of our decisions but that’s the point: We take the decisions.

To be sustainable and even make big bucks, us freelancers might need to work approximately the same amount of hours as fulltime employees, but we can manage our working hours the way we want to. We can spend the day at the beach and then work until five in the morning. Yes, we need to respect deadlines. Yes, staying awake until sunrise everyday is not the healthiest thing to do, but as long as we deliver, we can do whatever the hell we want with our days (and nights). Our time, our rules.

3. Risk-free

I know this sounds controversial. In most developed countries, there are perks that come with full-time employment –think health insurance and other benefits - but being your own boss gives you a certain type of security. No one can force us to do something we’re reluctant to do, whether it’s writing an article that serves an advertiser’s interests or sign a very cheap-looking website with our name. We don’t risk anyone imposing a project on us, and we don’t risk seeing the boss’ second-generation cousin climbing the ladder instead of us. 4. Sense of self-achievement

A lot of freelancers I know often ask for lower rates than what they should be getting. There seems to be a universal lack of self-confidence –and sometimes even self-shaming- in the world of freelancing; people seem to think that those who can’t work freelance, and we often ascribe to that myth. However, freelancers who know their value get a much bigger sense of self-worth than full-time employees- blame it on all those employers who take pleasure in not rewarding their employees for their individual achievements. When we’re commissioned for a project, we know it’s because of our quality work, not because we “belong” to a multinational company with glitzy downtown headquarters.

YES, STAYING AWAKE UNTIL SUNRISE EVERYDAY IS NOT THE HEALTHIEST THING TO DO, BUT AS LONG AS WE DELIVER, WE CAN DO WHATEVER THE HELL WE WANT WITH OUR DAYS (AND NIGHTS). OUR TIME, OUR RULES.

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Happiness, available at Lulu. We at Lulu have always been trying to widen our network, expand our range, innovate our promotions and improve our service so that more than 570,000 shoppers who come to our 106 stores across the region daily, get exactly what they want,

Happiness!

Ranked as No.1 Hypermarket Chain in the region by PlanetRetail UK.

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BETTERING YOUR CORPORATE EXPANSION ODDS The right private equity backing can fuel your company’s growth By Imad Ghandour

ehind many successful companies there is probably a great private equity fund, and I have the case studies to prove it. I’m sure many entrepreneurs may disagree with my statement- including those that have tried partnering (unsuccessfully) with private equity funds both inside and outside of the MENA region. But consider that all of the following regional corporate leaders (just to name a few) have been backed by private equity (PE) during a stage of their journey: the region’s number one business

portal Zawya, the region’s number one courier Aramex, the market leader in regional interior contractors Depa, the leading regional water engineering outfit Metito, the top regional radiology center chain Technoscan, the premier lab chain AlBorj Labs, the region’s top low-cost aviation brand Air Arabia, and finally, Kids First Group, the foremost regional nurseries chain. The list is endless, but those are the easily-recognizable MENA players that have demonstrated serious achievement across industries.

One of the least acknowledged – yet universally substantiated– facts about private equity is that it improves the prospects of success and growth by providing smart money for companies. A recent Ernst & Young report on the performance of private equity backed companies in the U.K. revealed that on average, PE backed firms had faster growth in revenues, profits, employment and productivity compared to economy-wide measures and listed companies. A company we had invested in a decade ago was a successful secondgeneration company founded in the 1960s. The business was a regional leader in the water sector, and was performing well by all measures. Its founders and management were on top of their game and globally recognized, yet our involvement and support allowed this company to reach global prominence. Their revenue quadrupled, and their profits increased by a factor of ten. Currently, that very same company’s operations extend from China to Morocco. Success fuels success: Investors, banks, and financial institutions are queuing now to fund its global expansion. In a more recent investment in a nascent but very well managed educational company, we were able to take a local small-scale operation and help it become a regional corporate leader in a matter of three years by lining up and funding acquisitions across the region. Growing at more than 80% yearly, banks lined up to fund its growth. First real estate developers invited the company to participate in their new communities, then talented principals and managers were keen to be part of their new found success. In both ex-

ONE OF THE LEAST ACKNOWLEDGED YET UNIVERSALLY SUBSTANTIATED FACTS ABOUT PRIVATE EQUITY IS THAT IT IMPROVES THE PROSPECTS OF SUCCESS AND GROWTH BY PROVIDING SMART MONEY FOR COMPANIES. 68

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4. IT IS A LONG-TERM PERSONAL RELATIONSHIP, NOT JUST A BUSINESS CONTRACT

Whatever deal you ink with your new private equity partner, the paper contract will soon fade away, leaving only the reality of the personal relationship. In this regard, the stability and the longevity of the private equity team is critical. You don’t want to deal with a new person every month, for obvious reasons. 5. TRANSPARENCY IS KEY FOR LONG-TERM TRUST

FINANCIAL PERFORMANCE CHART SOURCE ERNST & YOUNG REPORT, 2013 BVCA ANNUAL REPORT ON THE PERFORMANCE OF PORTFOLIO COMPANIES, VI

Do put in the effort to continuously inform your partner, and avoid any situation that may question your integrity or create any misunderstanding. Trust takes years to build and only a day to demolish.

mance mance evenue venue

BITDA BITDA

amples, private equity role was complimentary -but critical- to that of the founders. It brought financial backing to the table that few founders have easyaccess to, and are generally not capable of generating on their own, despite obvious merit. But besides the deep pockets, a well-established fund brings with it strategic support, highlevel contacts, global business development capabilities, access to bank loans, and a wealth of experience. It is a win-win partnership between the smart money of a private equity fund, and the vision and hard work of an ambitious founder. Admittedly, there is a caveat:

Not all such partnerships are destined for glory. Some have failed due to lack of understanding of the nature of the relationship between partners of different stripes. Here are few tips on how to make your next private equity partnership work better for your company: 1. PARTNER WITH THE BEST

There is a wide discrepancy in performance of different private equity funds. There are few that are good to great, a few that are very bad, and the bulk hover around average in terms of all the factors discussed. Don’t let the fund choose you, it’s better if you choose the right fund.

Financial performance Reported revenue

Reported 6.8%EBITDA 6.8% 4.6% 4.6% 3.7% 3.7%

5.8% 5.8% Average for British-backed PE firms 4.3% Listed British companies unweighted average 4.3% Listed British companies weighted average 3.8% 3.8%

6.8% 4.6% 3.7% 5.8% 4.3% 3.8%

Hook yourself to a star private equity fund that has a track record of success. 2. FOCUS ON VALUE-ADD MORE THAN VALUATION

More often than not, entrepreneurs focus on the valuation of their company before focusing on the other value-added qualities of the incoming private equity partner. And here is the dilemma: The best private equity funds will be the least willing to overpay for their investments. Remember, keeping your eye on the prize doesn’t mean eyeing the dollar signs. 3. ACKNOWLEDGE THAT PRIVATE EQUITY FUNDS HAVE DIFFERENT AGENDAS

Negotiating with private equity funds is a frustrating endeavor. Their conditions, limitations, risk-averseness, short-termism, and business conduct seems to be at odds with the character of most entrepreneurs. In order to succeed, lead the negotiations and propose win-win solutions. At the end of the day, private equity funds are simple to satisfy- just deliver for them financial returns over the years. It is a love story that is destined to end amicably in few years, so manage it as such.

Most, if not all, entrepreneurs will require access to funding as they head toward business success. There’s no point in highlighting that private equity funds think and act differently than entrepreneurs; it’s clear that they are genetically different. But private equity, with its focused and experienced fund managers, remains the best-suited form of funding, especially in the early stages of company formation, and the onus of choosing the right private equity partner -and consequently ensuring the partnership success- remains on you as the entrepreneur.

Imad Ghandour is the Co-founder and Managing Director of CedarBridge, where he focuses on investing in growth companies in MENA region. Ghandour has more than 10 years of experience in private equity and investments throughout the Middle East and China, and specializes in the education and healthcare sectors. He is also a co-founder of the MENA Private Equity Association, and was awarded by Private Equity World the prestigious Private Equity MENA Merit Award for 2011. Talk to him on Twitter @iighandour. AUGUST 2014

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Taking no for an answer? It happens to the best of us

SIX REASONS WHY VCS REJECT GOOD STARTUPS By Robert Carroll

n one sense, successful entrepreneurs seem to say “no” more than the average person. Greg McKeown, author of Essentialism: The Disciplined Pursuit of Less, gave this advice to entrepreneurs on HuffPost Live: “The temptation all over the place... is to do more. The brutal reality of trade-offs is you cannot.” He urged entrepreneurs to “narrow their focus.” Entrepreneurs tend to have a vision and must avoid all distractions in order to achieve it. Someone who says “yes” to many things is probably saying “no” to more important things.

In another sense, entrepreneurs often hear many “no’s” along the path to success. Young Walt Disney was fired by a newspaper editor because he “lacked imagination and had no good ideas.” He went on to build a creative media empire. Steve Jobs was fired from his own organization

and returned to build Apple- turning it into one of the world’s most valuable companies. Oprah Winfrey lost her job as a reporter because she was “unfit for TV.” These three visionaries have all probably looked back on their “no’s” and said something to the effect of “Suckas!” Oprah Winfrey

Despite your own familiarity with the word “no”, rejection still hurts. As a venture capitalist, I have to say “no” to a lot of good startups and founders. It’s just the nature of the game- a firm can only invest in so many companies. In order to prime your expectations, and hopefully lessen the blow, here are the six main reasons why venture capitalists often decline to work with good startups. YOU NEED MORE TRACTION

Venture capital funds usually invest according to a fund strategy, which pretty much always indicates the stage of companies they invest in. If you are an idea stage company trying to raise capital from an early stage fund, you will probably get told to come back later with more traction. You will hear the same rejection if you are an early stage company trying to raise capital from a growth equity fund. Traction is good regardless of wherever you’re pitching your startup, but it will definitely matter to some funds more than others. WE HAVE A COMPETING PORTFOLIO COMPANY

Venture capital is a game of picking winners, and investors often don’t have much to work with. Once they choose to invest in a startup in a particular space, it’s very difficult for investors to bring in any other similar startups. For example, once there is an ephemeral messaging app in the portfolio -there are too many to choose from right now- it doesn’t make sense

IF YOU ARE AN IDEA STAGE COMPANY TRYING TO RAISE CAPITAL FROM AN EARLY STAGE FUND, YOU WILL PROBABLY GET TOLD TO COME BACK LATER WITH MORE TRACTION. YOU WILL HEAR THE SAME REJECTION IF YOU ARE AN EARLY STAGE COMPANY TRYING TO RAISE CAPITAL FROM A GROWTH EQUITY FUND. 72

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WE’RE UNSURE

NEW YORK TIMES BESTSELLER

The VCs you are talking to may keep you hanging on for a long time. This is probably because they’re unsure whether they want to invest or not. As one entrepreneur put it, “time kills deals.” If you’re dealing with slow investors, move on. Study these six reasons and use them to your advantage. Self-awareness is key to

negotiation with VCs. Understand your company, competitors, and the venture firm from which you are seeking investment. You must understand what the different stakeholders want in order to get what you want. Even then, you may still get a no, but remember that Oprah, Steve, and Walt are right there with you.

Robert Carroll works with Oasis500 to fund and coach startups throughout the world. His work with entrepreneurs began at a venture seed fund in Utah and a tech startup in Silicon Valley. Stay in touch by following @robgcarroll on Twitter and subscribe to his weekly newsletter on JordanVC.com

NUMBERS FTW!

IMT Dubai named as winners in student competition THE VCS YOU ARE TALKING TO MAY KEEP YOU HANGING ON FOR A LONG TIME. THIS IS PROBABLY BECAUSE THEY’RE UNSURE WHETHER THEY WANT TO INVEST OR NOT. IF YOU’RE DEALING WITH SLOW INVESTORS, MOVE ON. to add one more. This is because the success of one investment might destroy the success of another. So if a VC rejects you on the grounds of a “competing portfolio company”, don’t waste your time feeling bad. Just go find another VC. YOU’RE TOO LATE

Trends come and go, and so do investment opportunities. As social media investments continue to wind down, something else will crop up as the next hot thing. Tech has a short shelf life, as you may notice when you open your desk drawer and see

your dead first edition iPhone (which only launched seven years ago). If you’re too late to the game, you won’t likely find an investor. YOU’RE TOO EARLY

An early idea can look just as bad as a late one. Although tech prides itself in being ahead of its time, investors usually look for obvious wins (obvious to them, but not yet obvious to the masses). They like to leave the crazy ideas to the research labs.

Guess who took home the winning title for using complex math in real life? Organized by the Institute of Management Accountants (IMA), the Institute of Management Technology Dubai (IMT) won the IMA Middle East Student Case Competition 2014, taking home the top prize of USD$3,000, while runner-up Middlesex University Dubai were awarded USD$2,000. After being asked to display their analytical skills by solving a management accounting case, the top four teams showcased their case study to a panel consisting of industry experts. The teams were judged based on their ability to develop a business strategy, as well as the implications and the resources-used. Launched in 2012 to encourage fresh finance and accounting industry talent in the MENA region, the contest received 22 entries from 18 universities. The hopefuls competing for the IMA Student Case Competition 2014 prize included students from UAE, Egypt, Saudi Arabia, Lebanon, and Bahrain.

YOU’RE TOO EXPENSIVE

Valuation is a difficult subject to discuss because it’s highly subjective. The bottom line is that if your valuation seems too high in comparison to your past achievements and future roadmap, you likely won’t get an investment. Your options are to (a) negotiate down to a lower valuation, (b) find another investor, or (c) finance your startup in some other way. AUGUST 2014

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Function

Battle of the doppelgänger startups that want to take you places Overview Careem vs. Carpool Arabia By Pamella de Leon

he taxi takes an hour to pick you up, the driver is unaware of your destination, and to boot doesn’t have change. With the inconvenience of commuting and taxis, consumers are looking for other options. There’s a rise in transportation startups across the GCC; in some ways they’re similar, but for the most part they’re not. Wondering what the differences are? We asked the founders of Careem and Carpool Arabia. Idea

Careem, an “online chauffeur-driven car service”, was ignited from the co-founders’ frustration. Mudassir Sheikha and Karl Magnus Olsson were disappointed with transportation services and both had aspirations of building something that would have a positive impact. As management consultants who were always on the go, the duo felt how adeptly the airlines and hospitality industries addressed their clients, and found that car services were insufficient. Two years ago, the duo wrote down what they now call “Careem Values” and developed a six-week plan to launch a pilot that included developing the first version of the web platform and app, signing up transport companies, training drivers and getting a pilot customer on board. Their initial targets were corporate customers, and though that’s still a segment of their business, the consumer business side is growing swiftly. 74

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Startup Carpool Arabia lets users carpool to different venues, triggered by founder Benjamin de Terssac’s commuter stress. He observed that most cars on the road were occupied by just the driver, and that there was a lack of affordable alternatives- not to mention the congested traffic. After researching and establishing that others were facing the same issue, de Terssac decided to localize the successful carpooling concept for the Middle East market. In late November 2013, de Terssac convinced the previous CTO of his former startup TaskMine, Leejo Pylappan, to join in launching the “green project” during Startup Weekend Dubai, where the rest of the team was formed. Six weeks later, CarpoolArabia.com was opened for beta users and officially launched on February 2014.

Careem is a “value-added aggregator of the chauffer-driven cars in the Middle East.” Working with licensed transport companies, they screen and train their drivers who are GPS-equipped. The company handles sales and marketing, web platform and app development to take and manage bookings, and call center operation for customer service and driver support. Once you’ve downloaded the app or visited the website, select a pickup location and a drop off location; the app will find a nearby car and you’ll be able to track progress on a real-time map, in addition to paying with credit card or cash for credits. Based on distance and time spent waiting, prices differ from ondemand to pre-scheduled services. Carpool Arabia has two services available; first off they’re a corporate carpooling service for companies, and secondly by letting individuals share the ride and cost with other users (“like Airbnb but for rides”), they’re introducing a transportation system that’s affordable, reduces traffic and carbon footprint, and lessens the stress of driving solo. On their website, drivers can see a directory of others offering a ride specifying itinerary and passenger fee. Passengers use the Carpool Arabia internal messaging service to plan pick up and drop off and discuss detours, without disclosing email addresses, but you are free to disclose other details. Prices are based on Carpool Arabia suggestions, calculated per itinerary and driver-incurred cost. Drivers offering a ride can also specify the price depending on the quality of the service they are offering (Silver/Gold/Platinum), but location, time or date is not taken into consideration when suggesting passenger fee. While Careem is looking to hit their break-even point in a year’s time, Carpool Arabia has a two-tier ROI plan that involves e-commerce and user onboarding.

Careem is currently operating at a “99.3% punctuality rate” with a condition that if a car is five minutes late to a pick up, the trip is free. UBER vs. Lyft

Dubbed as the UBER of the Middle East, Careem proves to be a worthy opponent by tailoring to region-specific needs like car pre-booking and guaranteed punctuality. According to Sheikha, Careem is currently operating at a “99.3% punctuality rate” with a condition that if a car is five minutes late to a pick up, the trip is free. You can use Careem without a credit card by buying credits with cash from the website. The app and website is modified to accommodate regional “addresses”, since directions here are mostly landmark-based. Originally started as a web platform for corporates, it grew as customers started requesting being able to book and track rides on mobile. As a ride-sharing company, Carpool Arabia has to contend with its U.S.-counterpart Lyft. “Carpool Arabia and Uber/Careem have a different business model,” says de Terssac, not the least of which is fares. A ride between Dubai Marina and Abu Dhabi costs 25 AED for a Silver car seat, 31 AED for a Gold car seat, and 40 AED for a Platinum car seat- quite a difference since the same UBER ride can cost between 230 AED and 400 AED. In contrast, Carpool Arabia doesn’t own any of the cars and doesn’t sub-contract transport providers, and they don’t charge drivers or passengers user-fees for services. Simply put, they want to cultivate a “community of enthusiasts who want to promote the concept of carpooling in the UAE.”

Safety and legality

Social media

Both companies act as the middleperson, so guaranteeing legality and safety is an issue. Careem works with transport companies licensed by local regulators such as the RTA and TransAD, and credits technology for transparency. Users can access the driver’s name and license plate, are able to see real-time map tracking, on top of free call center contact for inquiries and ride-rating. Cars are inspected for safety and comfort, and drivers are tested on driving safety, navigation knowledge, communication and customer skills. In Carpool Arabia’s case, there’s still a misconception that it’s likened to “car lifting”, though carpooling has been approved in Dubai since 2008 and positively-promoted by the RTA since it reduces traffic. The only catch? Users who wish to carpool with a non-family member/friend/co-worker, should “obtain and carry all necessary permits through the Sharenkni.ae portal” as stated on the RTA website and Carpool Arabia’s terms and conditions. The ridesharing company encourages user comfort through measures of social media profile authenticating, community feedback about the driver/passenger, internal messaging, self-selection, and even ladies-only options.

Careem’s #thinkcareem hashtag is their way to “become an integral part of people’s daily lives” (along with creating awareness by offering their services for local events). It’s interesting to note that consumers have been using the service in different ways than originally designed: errand-based trips like document transport, and even picking up dinners from restaurants that don’t offer home-delivery. Carpool Arabia has taken to sharing traffic news on their timeline to update their riders to facilitate trip-planning, and they also maintain a blog about transportation. Plans

Currently operating in Dubai, Abu Dhabi, Doha, Riyadh, Jeddah, Beirut and Damman, Careem promises to launch in more Middle East cities, and “get involved in the movement of things in addition to people.” Carpool Arabia will be introducing a revamped website with new community features like joining the Dubai Marina or Torch Tower communities to “social carpooling” participation. In the works is a new pricing schema for corporate carpooling, a mobile app, an online payment gateway, and expansion in the MENA region.

Market penetration

Initially funded by the founders (later raising funding from regional angel investors and Saudi Telecom Ventures), Careem’s market penetration covers the GCC business travel market through their contact with professional service firms, as well as being a hit for school runs due to safety features and airport drop offs where punctuality is essential. Where and when are they most popular? Female passengers in Saudi Arabia for work/leisure commute, and during night-out traffic hours in UAE and Qatar. Similarly, Carpool Arabia is self-funded by the co-founders who are hoping to close a round of funding in September. The startup currently has 380 registered users “with an average growth of 50% monthover-month,” and 1440 offered rides on the website directory– the majority being trips between home and work. With their corporate services, of the 40 companies they pitched a few that have signed on are du, NBAD, Majid Al Futtaim, MBC, and PepsiCo, and thus far, they’re receiving positive program feedback. Carpool Arabia has two services available; first off they’re a corporate carpooling service for companies, and secondly by letting individuals share the ride and cost with other users

WHO’S WHO

Careem Co-founders, left to right: Muddassir Sheikha and Magnus Olsson

Carpool Arabia Co-founders, left to right: Leejo Pylappan, Benjamin de Terssac, and Guillaume Arnaud AUGUST 2014

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“Your mission, should you choose to accept it…” APP PAYS USERS TO GET CROWDSOURCED BUSINESS INSIGHTS By Pamella de Leon

f you fancy yourself as a spy in town for a covert operation in true Mission Impossible form, then you might enjoy this. Launched in June at ArabNet’s Digital Summit, Task Spotting is an app that lets smartphone users look for missions in nearby locations using GPS for companies seeking data collected by

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the end-user. With 300 missions online so far, each mission lists tasks to places consumers frequent. Some interesting (and relatively easy) ones that we noticed? Shawarma tasting and checking out car prices by taking pictures or answering questions and earning Spotters cash rewards. Yes, you read that

right –Spotters actually get paid via PayPal or exchange centers. As Dubai and Abu Dhabi join the list of most expensive cities for expats in the Middle East (Emirates 24/7), the cost of living are much higher, and people are opting for a way to gain a little extra cash legally. Starting with an idea to “develop an effective way for businesses to get realtime visibility and market insights”, the Task Spotting team asked companies what they needed in terms of data, and their results indicated that speed and quality were top areas of interest. Bringing this need and technology to smartphones was the next step: “Imagine being able to reach out to thousands of consumers, ask them for the information you need from the market and receive it back accurately and in real-time, all at the touch of a button,” says Karim Aly, the startup’s CEO and co-founder. With a background in investment and strategy, the 35 year-old MBA INSEAD grad is no newcomer to the ‘trep scene, having seven years under his belt with his previous company Ecobility ranked as “#1 SME in the UAE” (AllWorld Network) and “#1 SME in Dubai” for both financial performance and overall growth (Dubai Economic Department). Joined by Aly is Dirk Stevens as Head of Business Development and in-house life coach, a veteran in enterprise software sales and a MBA INSEAD graduate. Stevens previously handled regional

business development at Advent Software. Task Spotting’s Head of Operations, Walid Sherif, graduated from American University in Cairo and has a commodity trading background. Bootstrapped by the founders from concept to realization, the app is breaking the state of how companies coordinate market research. For the UAE, it’s the first app that pays users with real cash, and the first platform in the UAE and Middle East to utilize crowdsourcing to get real-time business info from the consumer’s perspective. Why did they decide to use crowdsourcing? Efficiency. Although data accuracy and relevance is still very much a priority, some may argue that gone are the days when companies relied on traditional research firms- they can receive information in days, rather than weeks. The platform combines crowdsourcing with mobile tech, “by allowing businesses to capture information from precise locations, in real-time by leveraging smartphone users.” Plus, with the smartphones today, businesses can also increase their insights using photos, videos and audio to enrich the Spotters’ answers.

“Imagine being able to reach out to thousands of consumers, ask them for the information you need from the market and receive it back accurately and in real-time, all at the touch of a button”

The possibilities of how it can be used are endless, but for now the most common angles are “retail execution audits, competitive intelligence surveys, and mystery shopping.” It’s quite a playground for businesses to look for virtual workforce too, with Aly coining it as an “outsourcing marketplace.” Except in Task Spotting’s case, businesses are considered “clients” needing “real-time insights” while “freelancers” are onsite customer survey-takers using an app. An impressive feat, considering how it brings the two to collaborate using a tool such as Task Spotting. How is it different from virtual assistant platforms? Quite different as a matter of fact, wherein virtual assistant platforms are C2C (customerto-customer) business models, whereas Task Spotting is a B2C (business-to-consumer) stand. Although commending the well-proven business model and an easier tactic to execute, Aly dreams of a more “ambitious” platform. “We wanted to solve a real business issue and disrupt the status quo by harnessing the powers of mobile technology.” Disrupt the status quo, indeed. It seems to have attracted a warm welcome to its user base too, with word of mouth being their key catalyst that brought more than 2000 Spotters and other markets from the MENA region asking when missions will be live in their cities. Their early adopters are mostly “stay-at-home moms, cabin crew, teachers, retail professionals, and college students.” Task Spotting is an

app that essentially trusts users to do tasks, what were the challenges of convincing users and businesses of its functionality? How were prospective users and companies convinced and guaranteed payment? Aly admits it may seem as a “too good to be true” concept, which is why they were initially met with skepticism. But the team squashed naysayers via demonstrated results– and it worked. With businesses, Aly counts themselves as fortunate for having “willing” partners at launch, pleased with Task Spotting’s quality, speed and accuracy. In terms of Spotters, “we had a few enthusiastic Spotters who took a leap of faith on us by being the first to complete missions.” After earning their cash rewards, word spread around the community with one Spotter couple earning over AED1000 for completing missions over the course of a weekend. “I think it’s safe to assume that they’ve now become two of our biggest brand ambassadors,” says Aly. Every startup faces roadblocks, and Task Spotting has definitely had their share of hurdles. “I won’t sugar coat itit was very, very challenging.” During the development and testing stage, their resolve was pushed to the edge: “Every line of code has implications on the entire infrastructure so the development phase involved a steep learning curve for us and required months of testing to get it to where it is today.” Their process will “continue to evolve” from days of bootstrapping the company

Task Spotting founders, left to right: Head of Operations Walid Sherif, CEO Karim Aly, Head of Business Development Dirk Stevens

The Deets Task Spotting ROI “The monetization model is simple; it’s built primarily on a pay per use basis. Companies pay for the missions they launch using a linear pricing model driven by the number of questions they need to ask and the volume of responses they need. Although I can’t go into specifics about our break-even point (BEP), let’s just say we’re measuring in months, not years.”

“Every line of code has implications on the entire infrastructure so the development phase involved a steep learning curve for us and required months of testing to get it to where it is today.”

“to the tune of US$200,000” to currently having prospective investors –initiated from the investor’s side, a humbling and proud moment for Aly- and finally to launching at ArabNet that provided them more opportunity for exposure and networking, they’ve come a long way. After nine months in development and their recent launch in the UAE proving to be positive from both sides of the market, Task Spotting is more confident. “We feel comfortable with accelerating adoption and executing our regional growth plan, and [we] will be looking to raise our first round of institutional capital (Series A)” with a target to raise “between $1.8 million and $2.0 million”. What’s next for Task Spotting? Post launch, the team has thus far been pleased with the results and feedback. They do have plans for “evolution and enrichment”, but it’s less about their “vision and more about a process of discovery.” For now, they want to reflect and gather more feedback “before we embark on a specific strategic plan”, adding how they want to “create value” for both businesses and Spotter communities.

FUNCTIONALITY “A typical mission can earn a Spotter anywhere from AED 20 to AED 75 in cash rewards. Once a mission is completed successfully, Spotters accumulate digital credit in their wallets, which can be paid out at anytime to their PayPal accounts, redeemed in cash at one of our 200 payment options in the UAE or alternatively, for those who are feeling big-hearted, donated to a local charity.”

LOGISTICS “There are no real criteria per se [to put a mission on the map], but before a mission can go live on the app, it does need to go through our vetting process for approval. Having said that, Task Spotting was developed to help businesses across the spectrum that are looking to gain real-time access to information, whether that be a local F&B startup or a multinational FMCG [Fast Moving Consumer Goods] player. As long as the missions are compliant with our terms of service, and the company posting them is genuine, then their missions >>> should move swiftly through our verification process and be live on the app in no time at all.”

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Married to

the (startup) mob These relationships have gotten billion dollar valuations By Sharene Lee

STARTUP TRIVIA

What do Eventbrite, Modcloth, and Popsugar Inc have in common? ANSWER In addition to valuations in the US$1B range, all three startups were founded by married couples.

he term “startup co-founder” evokes images of young, single, (primarily) male hackers working furiously out of their college dorm rooms, slurping cup-o-noodles. Married couples -worse, married with children- don’t usually enter the equation in the public headspace. Fortunately, the startup demographic is diversifying. In the MENA region, women account for 35% of all startups1 and married co-founding couples are the new demographic to watch. Melltoo founders

I’m married to my co-founder Morrad. Together, we built Melltoo from scratch and are now a team of six. When we first landed in Dubai, we thought we would be the only married couple in the startup scene. Since then, we’ve met Guiddoo and The Curve

among others, all married cofounding teams in the startup trenches. I spoke to Maya and Ghassan of The Curve and Nidhi and Vineet of Guiddoo in a bid to understand how being married to our co-founders makes us different from other teams.

SHARED EXPERIENCES ARE AT THE ROOT OF COUPLE STARTUPS

decided to build a mobile app that makes buying and selling social and enjoyable. Similarly, the idea for Guiddoo developed from one couple’s ruined trip to the Eiffel tower. Nidhi’s dream of visiting the French monument with her husband Vineet was ruined when they were misdirected and ended up on the wrong floor- they lacked the ease of having someone to direct them. That’s when they came up with the idea of a tour guide that they could take with them everywhere- Guiddoo, a personal tour guide in your pocket. As for The Curve, the light bulb moment emerged from Maya’s frustration with the lack of personal enrichment options in Dubai; or rather, the lack of an easy way to find out about them. While Ghassan himself wasn’t looking to take classes, he empathized with his wife’s desire to learn new skills and develop a hobby. Nonetheless, the skeptic in Ghassan pushed the pair to do the necessary market research. They discovered the need resonated across a sample of

Couples founding startups are not as counter-intuitive as it seems. The most successful startups are founded by people trying to solve a problem they personally encountered. As it turns out, there are no individual problems for couples- one spouse’s problem inevitably becomes the other spouse’s concern. In our case, Melltoo was born out of Morrad’s experience with buying a used car in Dubai. His two-month ordeal of tracking down sellers, weeding out lemons, and scribbling notes on scraps of paper strewn all over the house was as frustrating for me as it was for him. We knew there had to be a better way, so we

1 “Untraditional choice: The Middle East beats the West in Female Tech Founders” http://www.economist.com/news/business/21581740-middle-east-beats-west-female-tech-founders-untraditional-choice 78

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Guiddoo founders

UAE residents, and then began to build a solution. That’s how The Curve became UAE’s first online booking engine for classes and courses. EMOTIONAL EMPATHY, TRUST, AND ROLE CLARITY IS CAPITAL FOR STARTUPS

Workplace romances are generally frowned upon- some VCs 2 have stated outright state that they will not invest teams 3 that are family-based. The perception is that emotional engagement impairs judgment in a professional setting. This might be the case for employees in the corporate world, but startups are the antithesis. Building a startup is an emotionallycharged experience likened to a rollercoaster ride. All startup founders will testify to the constant ebb and flow of highs and lows. The most effective founders are those who can maintain an even key most of the time. As a result, emotional empathy is highly prized in such an environment. There are times when the amount of work seems overwhelming and I feel like throwing in the towel. That’s when I need to vent, and yes, even “lose it” before I can get

back on track. If my co-founder in Melltoo were not my husband, he would probably not understand my “process”; he’d most likely lose faith and start looking for someone else to work with that doesn’t exhibit emotional waves. Fortunately, Morrad knows how to get me to snap out of it! Similarly, Maya and Ghassan prize their ability to be frank with each other, and they believe that “spouses are less afraid to be honest, as the foundation of their marriage provides the security to be able to say what they really mean.” TRUST AND COMMITMENT ARE HEIGHTENED IN MARRIED STARTUP SCENARIOS

Too often, startups fail before they even start because co-founders are not equally committed or trust is broken 4 . With married co-founders, there is much more at stake than the health of a business. Firstly, married often means The Curve founders

that you’re done with college and have other financial commitments. Melltoo has five children and Guiddoo and The Curve are both expecting at present. As The Curve puts it: “A spousal team is definitely more heavily invested in a business, as the burden of sacrificing either one or both your steady salaries constantly weighs on you. This drives you to work harder to grow the business in order to offset the financial pressure your family is facing.” Secondly, working against your co-founder is equivalent to working against yourself, not to mention an attempt at marital suicide. Guiddoo echoes this sentiment: “The major strength of married co-founders is the commitment to the startup, because both of us know what is at stake and are in the same boat.”

Morrad is the ideas guy, the visionary, the one who motivates and inspires. I’m the one knee-deep in the logistics, turning ideas into actionable plans. At the idea stage, Morrad knew he wanted Melltoo to be a platform for buying and selling with an Instagram-like interface with WhatsApp integration. I wrote up the comprehensive featureset, created wire-frames and screen flows, and made sure the end product matched the initial idea. The Curve team’s skillsets are also varied: Maya brings her extensive marketing experience to the table while Ghassan contributes with years of investment experience and a legal background. She focuses on recruiting business partners, developing workshops and operation management while Ghassan handles the financial aspects and topline strategy. Being married and knowing each other’s strengths and weaknesses helps establish role clarity early on to maximize available resources.

ROLE CLARITY IS WELL DEFINED IN MARRIED STARTUPS

Successful co-founders have complimentary skillsets and well-defined roles- think Steve Jobs and Steve Wozniak. Startups, especially those in the early stage, don’t have extra resources to squander, meaning that each co-founder should be adding value in whatever he/she is doing. If role clarity is absent and two or more cofounders are doing the same job, then work is most likely being replicated and resources wasted or underutilized. In the case of married co-founders, each spouse is well aware of the other’s abilities and knows where not to tread.

2 “Why VCs rarely back family founders” http://fortune.com/2011/08/30/why-vcs-rarely-back-family-founders/ 3 http://www.quora.com/For-VCs-why-the-aversion-to-working-with-co-founders-who-are-married-to-each-other 4 “Co-founder breakups” http://blog.harjtaggar.com/co-founder-breakups AUGUST 2014

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THE HOW-TO NAVIGATE A MARRIED STARTUP

Conflict management is a valuable skill for every startup founder

Co-founders butt heads about everything, from major aspects like developmental priorities and market segmentation to minutia like the color of the business cards. Conflict between married co-founders usually pans out in one of two ways: Either your marriage has taught you how to handle conflict between yourselves or professional conflict can evolve into personal drama. Guiddoo

cautions that “disagreements can turn into full-blown arguments, and it is important not to take each other for granted.” The Curve suggests that you “respect each other’s opinion, and always hear the other person out.” At Melltoo, we take turns to speak- not only does this resolve conflict, but we’ve also come up with many brilliant ideas when we’re forced to hear each other out.

MAKE AN EFFORT TO SEPARATE WORK AND FAMILY BY ALLOTTING TIME

The startup journey is so consuming that it’s easy to forget that anything else exists. Non-married startup founders are jolted back to reality when they go home to their families, but married co-founders often don’t have this escape. Other married couples talk about baby’s first steps or their 10 year-old’s great test score. My husband and I talk about user privacy on Melltoo, and our kids are chanting lines from our video explainer! We have to enforce “No Melltoo” hours and zones in the house. Definitely make time for your family, especially for the kids. Adults can postpone emotional fulfillment but children cannot. Advice from The Curve? “Leave work at work.” Guiddoo’s summation of this particular challenge? “There are endless possibilities and the sky’s the limit when a married couple works together for the same goal. Take advantage of each other’s skillsets, and aim for balance between work and home. Easier said than done!”

WHO’S WHO Melltoo A mobile marketplace and a community for buyers and sellers to exchange pre-loved and new belongings. Melltoo is available for iOS and Android. www.melltoo.com

Guiddoo Your personal tour guide that puts history, arts and culture in your pocket. Guiddoo is available for iOS, Android and Windows. www.guiddoo.com

The Curve An online booking portal for classes and courses in the UAE. www.theCurve-ME.com

Learning is earning Researchers based at Northwestern University in Qatar awarded grant Qatar’s academic institutions have been keeping a close eye on the country’s growth, including their media sector. With Qatar aiming to be a knowledge-based economy, a healthy and growing media sector is considered key. Northwestern University in Qatar (NW-Q) studied and researched the media sector’s growth in Qatar for the past two years, led by Dean and CEO of NW-Q, Everette E. Dennis. Due to the project’s success, 80

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Dennis and co. were awarded a US$850,000 grant from the National Priorities Research Program. The grant will help them keep the project going until 2017. With the first and second editions of the survey published by various international media outlets, it’s more than likely that people will be interested in keeping up with future findings. The team will also present their findings at an international media conference in Montreal.

Fatma Al Remaihi Doha Film Institute, Director of the Ajyal Youth Film Festival and Head of Programs, Sara Abdulaziz Al Derham NU-Q student, Justin Martin Assistant Professor in Residence NU-Q, Robb Wood Director of Strategic Partnerships NU-Q

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Typography matters

Startup founder Otba Mushaweh aims for Arabic font excellence with TypeStage By Kareem Chehayeb

e tend to forget that Arabic fonts on word processors are very limited… or even that a multitude of them exist. In fact, options are so limited that I’m not even able to pick one to create a typography taboo à la Comic Sans. Setting humor aside, can you imagine how challenging it must be for web developers and designers to have such a limited set of Arabic fonts at their disposal? I sure can. Saudi-based Syrian ‘trep, Otba Mushaweh, is working night and day to solve that problem with TypeStage.

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TypeStage founder, Otba Mushaweh, is a Syrian graphic designer with over a decade of involvement in the field. Due to the lack of graphic design programs in Saudi Arabia, where he was brought up, he says that he found himself stuck in a rut. “This forced me to look for another path, and I ended up studying information technology at the Arab Open University, a branch of British Open University, where I received a bachelor’s degree in Information Technology.” After working as a freelance graphic designer for some time, he started a small design studio called Logos Guide in 2006 that earned third place in a competition in Dubai. Four years later in 2010, he started Logo Talks, which he describes as an “online magazine for students and professional designers who are interested in expanding their knowledge of logo design, brand development, typeface creation, and typography techniques.” After elaborating on Arabic’s illustrious history of typography and calligraphy, he gave us the scoop on the issues he’s trying to sort out with TypeStage. Mushaweh told us that while many

designers claim that there are almost 500 Arabic fonts, 90% are “unsuitable for the web, either for aesthetic aspects or for technical aspects.” Contrasting this number with 150,000 plus Latin-based fonts, Mushaweh was also inspired to start TypeStage due to the impact the lack of Arabic fonts make for consumers and businesses alike. Discussing the one mainstay dreaded font that many businesses struggle to work with for their web and multimedia content, he explains that it is a “default font on most computers, which sometimes has a problem in the justification, legibility or in readability rate at some sizes.” It sounds like a herculean task, and with a team of only Otba Mushaweh and his developer, that’s an understatement. While he plans on working with external font designers Otba Mushaweh

while many designers claim that there are almost 500 Arabic fonts, 90% are unsuitable for the web, either for aesthetic aspects or for technical aspects. in the near future, for now it’s a small, internal team. Without any angel investors, Mushaweh explains that TypeStage’s funding has all been a personal investment. Since the startup is just under one year-old, this doesn’t sound out of the ordinary, but the founder admits that TypeStage’s costs are astronomical. “Designing professional Arabic fonts cost us an arm and a leg, but I’m trying to manage as much as possible.” ROI? Out of the question. What does their current typographical arsenal look like? “Most of our designs are between the Naskh style for text and Kufi Style for headings and short paragraphs,” he explains, adding that they also create hybrid fonts that merge both styles. In addition to Arabic, they also offer Urdu and Farsi fonts, seeing as they both are languages that are “derived from the Arabic alphabet.” These two demographics offer Mushaweh a window of opportunity: “Those markets are quite interesting as well, as they have tens of millions of users and they are extremely interested in typography.” Presently, three different plans are offered for potential customers, depending on number of fonts on offer and web traffic. “The

first bundle is free with limited features,” said Mushaweh, “such as using only one font per website within 5000 page views per month.” The second bundle targets larger websites, and has some additional features like “two fonts per website within 100,000 page views per month.” The third plan is the largest, offering an even larger number of fonts and up to two million monthly page views. The response? So far so good, but there is much work to be done. “Arab users are looking for a variety collection of professional Arabic webfonts,” but a heavy dedication of time and other resources is needed to make this all a reality. Likely this will pave

Alnada Font

‫ﻣﺤﻴﻲ ﺍﻟﺪﻳــﻦ ﺑﻦ ﻋﺮﺑﻲ‬ 30 px Neen Font

60 px

the way for TypeStage’s first phase growth and expansion, since a service like this is in high demand across the GCC and throughout the Arabicspeaking world. Stressing on the amount of online media, newspapers, and magazines that all demand Arabic fonts, one specific example is that TypeStage were asked to design a traditional Naskh web font. Currently, Mushaweh is working on a partnership with a large regional company, and

new Arabic fonts. The founder encourages people to speak, write, and read in Arabic, and to ultimately “revive” the tradition of Arabic typography, which he describes as “one of the oldest and most amazing typography histories in the world.” With all that said, what’s Mushaweh’s favorite font? “Actually, I am working hard on all my designs, so I love all of them. Each one of them has its special kind of flavor.”

Neen Font

‫ﻳﺎ ﻧﺴﻴﻢ ﺍﻟﺮﻳﺢ ﻗﻮﻟﻲ‬

‫ﻟﻠــــﺮﺷــــﺎ‬

‫ﻟﻠــــﺮﺷــــﺎ‬ ‫ﻟــﻢ ﻳــﺰﺩﻧــﻲ ﺍﻟــﻮﺭﺩ‬

‫ﺇﻵ‬ ‫ﻋـــﻄـــﺸــﺎﺍﻟــﻮﺭﺩ‬ ‫ﻟــﻢ ﻳــﺰﺩﻧــﻲ‬ ‫ﺇﻵ ﻋـــﻄـــﺸــﺎ‬

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certified graduate

sponsored by dubai chamber in the spirit of facilitating emirati achievement via entrepreneurship

Building startup success Emirati ‘trep from the ground up Ahmed AlMentheri E

mirati entrepreneur Ahmed AlMentheri encountered the same problems that a lot of other young enterprise hopefuls mention- closed doors, and a lack of hard knowledge as to the process of converting an idea into a real

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business. His UAE-based company, Kaizen Blitz LLC (KB), is working with one product at present, an energy drink made in the U.S. named +RED. He’s currently employed in the oil and gas sector, and prior to launching KB did mostly “small business deals like selling plate numbers and classic cars.” As for the concept behind his new company’s corporate identity? AlMentheri explains that the Japanese name is “well-known in quality control,” and that their brand means “continuous improvement”. Improvement indeed, working with his co-founder, Walid Alkhaili, the duo wanted to get their idea off the ground, and went to Tejar Dubai for guidance after a slew of disappointments. “I came up with the idea when I was looking for a franchise to bring to the UAE, but with the demanding needs of the franchises we instead decided to cre-

ate our own brands and to find new, unique brands to bring to the Middle East.” AlMentheri has plans to do a whole lot more, both with his own company and to support the SME space in the country. “Emiratization is one of the most important issues that we all have to support for the UAE’s future,” says AlMentheri adding that once KB grows in size and need, employing the country’s nationals is high on their priority agenda. KB’s ambitious plans also include another facet of Emiratization: promoting and distributing products abroad that are developed in the UAE by Emiratis. As for the determination and motivation entrepreneurs need to keep going, AlMentheri says that “for me it’s a passion. Once you have passion for what you are doing, you will always be motivated to see it build from ground up.”

‘TREP TALK Q+A What is the business model behind Kaizen Blitz (KB)?

Kaizen Blitz now has one product for distribution in the Middle East: +RED Elixir made in USA. We are looking for sub-distributors in a couple of countries. KB is not only a distribution company, we invest in other F&B sectors. We are developing new plans to serve SME needs in the UAE by supporting their distribution and plans to produce more of their products. KB’s long-term goals is to be a pioneer in the F&B sector of creating our made in UAE innovative products, and with our distribution and central kitchen we will support the SME businesses by providing them with their needs to grow. We also have other ideas that are [currently] under study to provide SMEs and home businesses with needed support. For now, I’m committed to grow KB’s distribution and investments. I’m currently working with Mubarak Al Suwaidi, founder of Suwaidish Technologies, to develop a smart application for the government that we hope will be launched later next year. Our vision is to take the country to a smarter

level that will help the country [move toward] the mission that our leaders want. What was the hardest part of your launch and execution of KB?

The hardest part was the approvals. We approached a couple of governmental organizations and we found out that you don’t get the right information or there is no communication with the other organizations, and there is no support for the young entrepreneurs. As a businessperson, you are committed 26 hours a day, seven days a week- not 24 hours and it’s not like being an employee where you work a couple of hours, go home and forget about it. You have to give your time, your passion, and your soul.

port and mentoring that other institutions or organizations didn’t give, and closed the door on us. We went through several steps with Tejar Duabi; first was the introduction meeting and a brief about our business idea. We sent them our profile and a more detailed business plan for the project. In the second meeting we discussed the best way to reach the right business and financial plans. Mr. Fadi El Ghattis was great at mentoring us along the right path and made us [provide] more information so that we could cover all of our weak areas. We then

had more meetings with him till we were ready for the panel presentation. We’ve learned a lot from him and [H.E.] Mr. Hisham Al Shirawi- the panel gave us guidance, mentorship and workshops that gave our knowledge strength, and how to do the right processes and to grow our business. We are [also] working with them for the financial support. I really think that every Emirati with an idea that he or she thinks is unique -or if he or she has the passionthey should seek Tejar Dubai’s help. We are like family, all of us learn from each other.

What process did you go through with Tejar Dubai?

I went to Tejar Dubai after going to several private and governmental organizations to support me with my startup, and to find funds and mentoring. I didn’t find the help I needed so I went to Tejar Dubai as a last effort and they gave me the sup-

Tejar Dubai is a development program committed to nurturing potential UAE nationals into becoming entrepreneurs. Launched last year under the patronage of H.H. Sheikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, the program identifies, develops, and mentors promising UAE nationals to expedite the growth of an embryonic business idea and advance it to the point of being ready for immediate implementation. www.tejardubai.ae @TejarDubai TejarDubai

AUGUST 2014

Entrepreneur

start it up

Wacky idea | whoâ&#x20AC;&#x2122;s got VC | Q&A | STARTUP FINANCE

The world is not enough Your startup is ready to go global? Take it one city at a time By Simon Hudson

or all of our regular readers, you will by now have read my personal view and experiences from the past seven months. We have looked at the steps to take when looking to raise that all important seed capital, how and where to spend your startup cash, when to focus on sales and how to approach sales overall, in addition to putting together an action plan for the hot summer months. For the month of August, I want to discuss my experiences on expanding your business into other countries and offer some advice based on my firsthand experience. Just 11 months in, the tech company I founded, brndstr.com, has recently spread its wings to open operations in Istanbul, Turkey. I am actually writing this article during my return flight to Dubai from a business trip there. As a startup and especially one in the tech industry, the world is a very small place. For Brndstr who works closely with Twitter and Facebook, social media companies based online 86

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can be seen globally in just a few clicks. As a business needing to generate revenue, knowing how to capitalize from the potentially massive online reach and what steps to take can sometimes be overwhelming. When Brndstr first launched, we partnered with local brands such as Virgin Megastore, UBER and Trolley.ae. The campaigns we ran were all very much based on the user being based in Dubai. However when we launched our iOS mobile app for the World Cup, and the WSJ covered our seed raise, everything changed. On a weekly basis we started to receive inbound enquires asking what campaigns were available in other countries, and when would Brndstr launch in their respective cities. As you can imagine, this is an amazing feeling and perfect for a startup- knowing how to turn this into dollars however is a different problem all together. We sat down in the Brndstr head office and decided to look at cities close to Dubai with the most potential for

our product, and what city could realistically act as a case study for future expansion. My advice to anyone faced with a similar problem? Definitely walk before getting out your running shoes- from the day we decided to expand into Turkey until the day I boarded a plane so many issues arose. If you are looking to grow, get a case study and pilot checked off first. The mistakes you will make during this initial process will save you a lot of time and money later on- consider this a valuable learning exercise. Once your destination is set and everything is in place, how do you connect this to the rest of your business infrastructure? I can only comment from my own experience, however it all comes If you are looking to grow, get a case study and pilot checked off first. The mistakes you will make during this initial process will save you a lot of time and money later on- consider this a valuable learning exercise.

back to the initial setup and formation of your business. If you’ll recall, in my first article I discussed how legal advice and a team are very important. We knew from day one we would want to expand, but I never expected it to be so fast- with tech today and living in a fast-paced world, anything can happen. Because we had set the structure fleshed out initially, igniting a satellite office in another part of the world was pretty easy. As always the staff and team you hire to spearhead the operations was the most difficult piece of the puzzle. I am pleased to say that six weeks from making the decision to break into another city we are all set and our first campaign will be launching this month. Now that we have a pilot to base our future decisions on, the next city should be a breeze! ‘Treps, if your startup begins to gain traction and you believe there is potential in other parts of the world, my advice is go for it. If however your setup did not take this into account from day one, get help and seek expert advice before booking your plane ticket. Good luck fellow globetrotters, and I’ll catch you in September to see how things are progressing.

Because we had set the structure fleshed out initially, igniting a satellite office in another part of the world was pretty easy. As always the staff and team you hire to spearhead the operations was the most difficult piece of the puzzle. 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.

Entrepreneur’s choice Trek in and out of city limits with Nissan Patrol 2014

e didn’t just test drive the new Nissan Patrol, we actually put it through the ringer for over a week. The Patrol, tagged as “tough on the outside, welcoming on the inside”, actually is tough on the outside and chillaxed on the inside. The hour-long commutes are much more bearable since it’s roomy and bright. You’ve got to sit in on three conference calls today? Take them in while you’re traffic – Bluetooth handsfree of course- since the interior is pretty lush with climate-controlled front seats. Parking and orientation issues are addressed by Nissan’s third gen Around View Monitor using four different cameras. Do take this

4X4 off-roading in the desert, and for those of you who check off the adventurer category, the roof rails will prove useful (in addition to adding an attractive aesthetic element). For manual transmission fans out there, the Patrol is good news since it’s the first V8 in its category to cater to your love of control. Eco-conscious? It’s relatively fuel-efficient in terms of SUVs, and Nissan has opted for reduced emissions with the Patrol. Young ‘treps, as one of the most stable and stimulating rides that we’ve seen this year, the investment pays for itself. Versatile, good looking, and most of all, a smooth ride. Start your engines! AUGUST 2014

Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Techie art installation with tangible user-generated results

magine watching a tree grow in a matter of minutes. Now imagine that it’s your very own heartbeat that transforms that seedling into a towering elm or cedar. Artist Naziha Mestaoui had a vision paired with an environmental passion: She makes trees grow, both virtually and physically. One Beat One Tree is an art installation that creates a 3D “light forest” where visitors interact with the art. A virtual seed is planted for participants

Entrepreneur

AUGUST 2014

that grows within seconds to the rhythm of their respective heartbeats, making the experience personal to each visitor. Mestaoui’s art goes further than digital experience- for each virtual tree seed, a real treed seed is planted in Ghana’s Kuapa Kokoo plantation. According to the Huffington Post, since inception Mestaoui’s project has planted 13,000 trees in an effort to improve biodiversity and forest landscapes. By Youmna Chagoury

www.electronicshadow.com www.nazihamestaoui.com

With every beat of my heart

Enterprise Agility Awards 2014 OF THE YEAR IN ASSOCIATION WITH

In recognition of the highly active community of entrepreneurs, the first annual Enterprise Agility Awards: Entrepreneur of the Year staged in association with du, will take place in October in Dubai

ENERGY

RETAIL BANKING

STARTUP OF THE YEAR

ISLAMIC BANKING

AVIATION

INFORMATION TECHNOLOGY

HEALTHCARE

BANK OF THE YEAR

CONSTRUCTION

VENTURE CAPITAL

HOSPITALITY

PRIVATE EQUITY

RETAIL

LOGISTICS

EDUCATION

FASTEST GROWING

CONSULTANCY

INSURANCE

LIFETIME ACHIEVEMENT

REAL ESTATE

www.EntrepreneurMiddleEast.com AUGUST 2014

Entrepreneur

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Crowdfunding spacewear

Betabrand funds designer’s space-inspired clothing line

etabrand, a Kickstarterlike crowdfunding platform for designers, recently got all universal wid’ it. “Designers use Betabrand like Kickstarter, but get to take advantage of our manufacturing capabilities,” explained founder Chris Lindland via an email exchange. “This guarantees production of successful ideas and far faster delivery.” In light of all the space-talk floating around the GCC since the announcement of the ambitious send-an-Arabto-space program, we got in touch with Steven B. Wheeler, the designer behind the Space Jacket, who used Betabrand to crowdfund his line.

The deets Space Jacket designer Steven B. Wheeler SPECS

“I made the first prototype of the Space Jacket in my free time because I’ve been in love with space exploration for as long as I can remember, and I 90

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loved the challenge of working with new materials in interesting ways. I pulled together some high-tech components and drew upon my experience -formerly I designed men’s technical outerwear at The

for myself, and showed pictures of it to contacts in various parts of the space industry. I was totally blown away by the responses! When we were invited out to visit some of the private space science labs in the area, people went bananas! Word spread like wildfire too, getting passed along to scientists, astronauts, and private-sector companies like SpaceX. It’s been very humbling and gratifying to show it to scientists and engineers in the space program and have them appreciate what I made as an homage to them. I never imagined the effect that my little side project would have, and I’m thrilled to be taking the journey together with Betabrand!” North Face- to design and sew the prototype myself. I chose Tyvek, Primaloft, and 15d nylon taffeta for their light weight and performance qualities, and because of how strikingly similar they looked to various materials used in the space program.” PROTOTYPE

“When I wore it to work the next day, Chris [Lindland] took one look at it and explained to me this could be way bigger than just a one-off prototype

DOMINO EFFECT

“Not only has the Space Jacket itself been a huge success for us, but it’s inspired others to come up with space-themed apparel ideas of their own. We had an event [one month] ago where we hosted space-industry experts, researchers, and designers here at Betabrand HQ for a collaborative design session to come up with new ideas- some of which are already on our crowdfunding page, and will be followed by many more.”

GOING WHERE NO ARAB HAS GONE BEFORE? UAE announces space exploration intentions

Look who is joining the race to space: UAE is planning to send an unmanned probe to Mars by 2021, making the mark for Middle East’s first mission to space. In addition to that, a UAE Space Agency will be created for UAE’s space technology sector and establishing the region as a global player in aerospace. An intention to send the first Arab to space has also been announced in tandem with the mission to Mars. Exploring Mars with other eight countries, the nine-month expedition will coincide with the UAE’s 50th

formation anniversary. UAE President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, commended the initiative saying that it “represents the Islamic world’s entry into the era of space exploration” (WAM). His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai, discussed the space program in terms of the “epic challenges [that] inspire us and motivate us.” The project is a monumental point in the UAE’s development with the Gulf nation’s space technology

investments already exceeding AED 20 billion (WAM), on par with the growing global investment interest in the “Final Frontier”. LLAP!

MARS IMAGE SOURCE THE COMMONS

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