Entrepreneur Middle East July 2014 | The Freedom of Business Independence by Entrepreneur Middle East

STARTUP SENSE AND SENSIBILITY… YOUR TIME IS AS IMPORTANT AS YOUR MONEY

50 SIGNS YOU NEED TO START YOUR OWN BUSINESS

It’s time to read the signals and realize that you might be ready to make the leap

FEEL THE FREEDOM OF BUSINESS INDEPENDENCE CONNECTING SUCCESS WITH POTENTIAL CRESCENT ENTERPRISES CEO BADR JAFAR TALENT WARS IN THE GCC RAHUL DHADPHALE

Your HR strategy needs to be a priority

THE HALAL INDUSTRY IS BIG BUCKS RUSHDI SIDDIQUI

BUDDYING UP IN BUSINESS JAMES CAAN

The opportunity cost of not investing in faith-inspired consumerism

The Middle East need for mentorship

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JULY 2014

CONTENTS

20 Sharjah’s future

entrepreneurs are getting a leg up

INNOVATORS: CONNECTING SUCCESS WITH POTENTIAL

TECH: ASK A GEEK

MONEY: ASK THE MONEY GUY

YOUR MONEY

Déjà vu isn’t exactly “thinking different” We’re not that blown away by iOS8, and it’s certainly not helping that Google has usurped Apple’s brand value throne.

Faith-based consumerism Rushdi Siddiqui believes that you should be investing in the ever-expanding halal lifestyle industry, and where exactly you need to wade in.

Crescent Enterprises CEO Badr Jafar Sharjah’s future entrepreneurs are getting a leg up

AMERICAN UNIVERSITY OF SHARJAH © BASIL D SOUFI | LICENSE CREATIVE COMMONS

THE UNIVERSE IS TRYING TO TELL YOU SOMETHING

Investing your own cash in the biz David Newton makes the case for why you need to convince outside investors that you’re willing to take on some of the financial risk.

36 ONLINE ‘TREP

50 signs you need to start your own business An entrepreneurial type reads the signals and realizes it’s time to make the leap.

Visual platform potency Is Instagram right for your brand? Here are some case studies that worked organically… and how to judge if you can do the same.

66 Faith-based consumerism

31 Huawei kicks things up a notch with the new Ascend P7 smartphone.

WEBSITE TO WATCH

Searching for the solution to e-commerce in MENA Telr’s Elias Ghanem is bringing two decades of experience to the table with his newest entrepreneurial venture. juLY 2014

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SKILLSET

ASK A PRO

Do things you can sustain James Clear thinks that just because you’re doing more, doesn’t mean that you’re doing it better. Sometimes putting your own ceiling in place ensures better quality… everything.

Weapons at the ready Leading up to the UAE’s Expo 2020 and the 2022 World Cup in Qatar, companies are going to have to think harder and faster to recruit and retain top quality talent. It might even be a war…

52 James Clear thinks that just 32 To see business boom,

established ‘treps need to take new businesses under their wing

12 EDITOR’S NOTE By Fida Z. Chaaban

42 CULTURE: TRAVEL

Amazon adventures Vodafone Qatar sends a slew of voluntourists for 21 days to build a school, and you’ll be able to tag along via social media in real-time.

43 BUSINESS UNUSUAL

Calling cards If you worked at Lego, you’d have cooler business cards than anyone else. We promise.

46 LIFE

Business book rundown Amal Chaaban tells you what’s up before you hit the business book aisle. Some reads you really can do without.

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62 LIFE

Coping mechanisms? When you’re dealing with an immense amount of pressure, there are a few tried and true methods that can help you get your focus in check. Mark Sephton’s got you covered.

44 ‘TREPONOMICS: ESQUIRE GUY

Asking for advice Ross McCammon discusses what is and isn’t appropriate in terms of brain-picking. The broader and more aimless your subject, the worse it is for the “pickee.” (His word, not ours!)

48 ASK A PRO

Nowhere to go but up Bayt.com’s Suhail AlMasri talks about hiring practices in the Middle East. Read his analysis on what may work for your business, and why there is no one-size fits all solution.

because you’re doing more, doesn’t mean that you’re doing it better.

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CONTENTS

JULY 2014

‘TREPONOMICS: MARKETING

START IT UP: WACKY IDEA

WACKY IDEA

STARTUP FINANCE

The end all and be all Be a successful entrepreneur by exploring your valuable network. Hussein Hallak has a plan for you, and it’s as easy as crowdsourcing your contacts for business development.

Snapp to it! Loyalty programs are all the rage. The co-founders behind Snappcard have seen to it that you actually want to participate… because all you need is your mobile to take part.

Startup mechanics Jordanian co-founders talk about why their app makes sense for both Jordan and the GCC. The only thing it doesn’t do? Give your car a tune up.

Significant startup sense and sensibility Simon Hudson made it happen for his startup Brndstr, and it wasn’t only his hard-earned dollars that he invested. Here he makes the case for time commitment to your business based on his own experience.

84 Q+A

Transformation station: Suwaidish Technologies Emirati ‘trep Mubarak Al Suwaidi is determined to make a difference.

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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 James Caan Amal Chaaban Youmna Chagoury Kareem Chehayeb Tamara Clarke James Clear Rahul Dhadphale James Dyson Hussein Hallak

Simon Hudson Dana Khairallah Danielle Kamar Pamella de Leon Ross McCammon Wassim Mourtada Suhail Al-Masri Shoug Al Nafisi Octavia Nasr

Rani Nasr David Newton John Patrick Pullen John Rampton May Rostom Mark Sephton Rushdi Siddiqui Erika Widen

MIDDLE EAST

IS DIGITAL www.entrepreneurmiddleeast.com

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For all commercial enquiries related to Entrepreneur Middle East contact sales@bncpublishing.net All rights reserved © 2014. Opinions expressed are solely those of the contributors. Entrepreneur Middle East and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Entrepreneur. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

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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!

WE’RE HEAVILY INVESTED IN OUR WEB PRESENCE EntMagazineME @EntMagazineME | @FidaChaaban Entrepreneur-me EntrepreneurMiddleEast EntMagazineME EntMagazineME EntMagazineME

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Entrepreneur ENTREPRENEUR 11 55

FEEDBACK Surprise, surprise Who is using Google+? Apparently a huge amount of people across the MENA region! We’re pleasantly surprised to see some real action on our Google+ account, especially since the platform’s penetration is often questioned. Google+ has recently released a handy insights feature which allows us to really see what’s happening on our account. They’ve got a tremendous user-base in Egypt, and that’s reflected in our followers and post engagement. Something we found surprising? The amount of website traffic that we’re getting from Saudi Arabia and Iraq (including Erbil) routed via our Google+ account. We’re also pleased that some of the

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harder to reach MENA demographic like Yemen and Sudan are hitting us up on Google+ to keep apprised of our latest articles. As is reflected in our other social media platform insights including Facebook and Twitter, our readership hovers around 80% male and sits primarily in the 18 to 44 range. How are we using Google+? To share our web content and release past issues online. The medium has garnered us a slew of new readers, and we’re happy to have you all onboard! If you haven’t already joined us online, we look forward to engaging with you in real-time.

On ISSUU you can access all of our current and past issues complimentary, including Entrepreneur Al Arabiya, our edition for those of you that prefer Arabic-language publications. If you haven’t yet visited our ISSUU account, check out issuu.com/entmagazineme

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EDITOR’S NOTE

Anecdotal evidence and the efficacy of storytelling Drawing on your own tough experiences as a ‘trep can help others succeed

t is often the case that people state an opinion based on their own experiences, both good and bad, without explaining the scenarios and back stories that helped them formulate the theory that they’re sharing. When considering this in the context of entrepreneurship and business, it is just as important to hear about your miscalculations (and your large and small errors in judgment), as it is to hear about your brilliant moments of clarity. All too often I am forced to vet an interview because the entrepreneur doesn’t want to admit to a single mistake or setback. If you, as a successful businessperson, cannot admit that there were bumps on the long road up, then you are depriving others from learning from your precious mistakes. Those same mistakes were a valuable learning tool for you- so what makes you think that they aren’t going to serve that same purpose for someone else? Tons of effective motivational speakers do exactly that. They will share a story from their repertoire of successes and failures, then explain the process behind each learning curve, and finally culminate with the moral of the story. The moral of the

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story isn’t necessarily a “moral”, but it’s the point that we should be taking away from the narrative. In essence, it’s basically telling the audience, “This is what I believe works for my business, and this is how I arrived at that operational strategy.” It is always great to have global entrepreneurs express interest in sharing their ups and downs with our readership, but it’s exceptional when these ups and downs are anecdotal. This is primarily because reading about the pitfalls of starting your own business (and the negative moments when no one believed it could be done) is just as useful as the story about the time when you won an award for your innovation. There are merits to admitting what you weren’t good at, and how you went about besting that specific challenge. (Not the least of which is the benefit of having the audience eager to hear how you overcame that major or minor setback, and what you would have done differently in hindsight.) It is unfortunate that some of the ‘treps who have volumes of useful anecdotal support from their constant trials with their now-skyrocketing businesses choose not to talk about the times when things didn’t go

exactly right for them. There are tons of times that my life mentors have shared “What not to do” stories with me, and I have grown immeasurably career-wise due to their tutelage. Entrepreneurs, I guess what I’m asking is for you to continue to send me your success stories, but along with the goods send me the bads- I look forward to learning from the things you know that don’t work and hearing how you learned what does work.

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

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IN THE LOOP U.S. SECRETARY OF STATE JOHN KERRY ANNOUNCES US$290 MILLION TO SYRIAN REFUGEES IN LEBANON

he Syrian refugee crisis has been most noticeable in Lebanon. Compared to Jordan and Turkey, Lebanon is arguably the least politically stable, and has the scarcest resources (in terms of institutions, infrastructure, and capital) to support refugees fleeing the ongoing civil unrest in Syria. An estimated one million Syrian refugees are in Lebanon- significantly higher numbers than Jordan and Turkey. To make matters worse, Lebanon is struggling to elect a new president. During U.S. Secretary of State John Kerry’s recent visit to Lebanon -the first visit by a Secretary of State in five years- he spoke with Prime Minister Tammam Salam, Speaker of Parliament Nabih Berry, and other Lebanese officials about the refugee crisis in Lebanon. Secretary Kerry also announced that US$290 million would be allocated for UN agencies in Lebanon that are involved with the Syrian refugee crisis. As the situation escalates, it is important to question the efficacy of mitigation action plans for Syrian refugees in the small nation, and to consider alternative re-settlement options. Why? A mitigation strategy where resources are allocated to establish institutions might have been successful during the earlier stages of the conflict. The time it takes to execute coping institutions and train relevant personnel means that developed countries will have to welcome refugees on their soil- whether they want to or not. U.S. Secretary of State John Kerry

IT’S JUST MY NEW PIED-À-TERRE EGYPTIAN BILLIONAIRE BUYS MOST EXPENSIVE CO-OP IN NYC

gyptian billionaire Nassef Sawiris has now set the record for the most expensive co-op ever sold in New York for an (wait for it…), astronomical US$70 million (NY Daily News). Forbes World’s Billionaires lister Sawiris, who accumulated his US$7.3 billion net worth in the construction industry, purchased the chichi 960 Fifth Avenue co-op even using his own name on legal papers, instead of an LLC (although sources told the NY Daily News that the co-op board prohibits LLCs). It was previously

owned by late billionaire Edgar Bronfman Sr., and originally put on the market for US$65 millionthe sale tops the previous record by business magnate David Geffen, who bought 785 Fifth Avenue for US$54 million in 2012. This is no ordinary pad: The 16-room apartment boasts five fireplaces, five bedrooms, eight bathrooms and a wraparound terrace with a view of Central Park. It looks like Sawiris is going to have to spend a bit more though, reports indicate that his new digs need revamping.

FIELD TRIP TO CASABLANCA University of San Diego sends students to learn the emerging market ropes

École de Management Casablanca (ESCA)

Apparently North Africa is no longer just the place that college students visit for voluntourism (volunteertourism) or an “exotic” vacay. The University of San Diego (USD) sent out a team of 26 of their MBA program students with five members of their administration to École de Management’s Casablanca (ESCA) campus in early June. Those who took part in the four-day event learned about Africa’s politics and emerging markets, and had the opportunity to meet various industry leaders and officials, including Mrs. Wissal El Gharbaoui, the Principle Private Security to Morocco’s Minister of Tourism. USD won’t be the last university that ESCA will be hosting; they’re planning on more seminars for more foreign schools in the coming year. Start taking notes!

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WHEN IN ROME... OR DOHA THE ONLINE (AND OFFLINE) DEBATE OVER CONDUCT AND ATTIRE HEATS UP IN QATAR

controversial social media campaign has recently emerged out of Qatar, bringing the Gulf state’s dress code and conduct debate to a head. The initiative, “Reflect Your Respect”, urges both men and women to dress more modestly, encouraging the covering of shoulders, midriffs, and thighs, conveying images that hemlines should not be above the knee when dressing for a public space. A flurry of debate has ensued online with supporters emerging on both sides of the issue, but “Reflect Your Respect” is quickly gaining traction with many Qatari nationals on the basis that their cultural identity and the country’s Islamic heritage are both intrinsically linked to an ethos that includes modest dress. The @Reflect_respect Twitter account and Reflect_Your_Respect Instagram account are active on a daily basis broadcasting events, material, and even re-posting content from social media users in support of the campaign. One of the English campaign materials currently being circulated cites

Article 290 of the Qatar Penal Code which states: “Whoever makes gestures, dares to say or sing immoral things or perform obscene acts in a public place or an open space shall be punished with imprisonment for a term not exceeding six months and/or a fine not exceeding three thousand Qatari Riyals” (Source: AlMeezan.QA Qatar Legal Portal) accompanied by an illustration of a female and male figure in half-embrace, and also mentions Article 57 of the Qatar Constitution: “Respect for the Constitution, compliance with the laws issued by the Public Authorities, abiding by the requirements of public order and public decorum, and observing national traditions and deeprooted customs are duties of all who reside in the State of Qatar or enter its territory” (Source: AlMeezan.QA Qatar Legal Portal). Those in criticism of the campaign cite the high number of ex-pats in Qatar, and they also question the position of the 2022 World Cup in light of the fact that an influx of foreign tourism is expected. An indicator of the

Abu Dhabi feels for felines International donors pledge millions to safeguard wild cats

group of international donors, including the Crown Prince of Abu Dhabi H.H, Sheikh Mohamed bin Zayed Al Nahyan privately met in Abu Dhabi to sign a commitment to donate a

total of US$80 million to wild cats conservation efforts. The funding effort will take place throughout the next decade, and the international donors have partnered with Panthera, a New York-based wild cats conservation organization. Panthera’s founder and chairman, mining investor Thomas Kaplan, took part in the pledge and hoped that efforts towards wildlife conservation would be more multinational, using this event as a “template”. Among the other donors are CEO of Hong Kong-based investment firm Jynwel Capital, Jho Low, and chairman of DSP Blackrock India and India’s Wildlife Conservation Trust, Hemedera Kothari. In neighboring Emirate Dubai, the Dubai Desert Conservation Reserve has been active in conserving the biodiversity of its deserts, with Emirates Airlines a key sponsor.

nation’s stance on the issue can possibly be drawn from the public Qatar Museums endorsement of the campaign; a sign has been posted stating that the organization “supports Reflect Your Respect”, encouraging people to view attached relevant material. A copycat UAE initiative has also launched on Twitter, but the account is largely inactive thus far.

PUSHING FOR PUBLIC TRANSPORTATION Oman Hosts the GCC Metro and Rail Conference Looks like Dubai’s Metro is just the beginning! Oman’s Ministry of Transport and Communications is hosting the GCC Metro and Rail Conference (GMRC 2014) on September 15 and 16, 2014. The event will bring all six GCC member states together, working to develop stronger manufacturing and services industries to complement the currently high levels of investment that have gone towards metros and railways. The event in Muscat will also host a panel of experts and pivotal decision-makers in the GCC. If this conference draws a wide variety of industry leaders from the private sector, we should expect a productive conference, and some solid railways across the GCC.

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INNOVATORS OPPOSITE PAGE: AMERICAN UNIVERSITY OF SHARJAH LIBRARY

CONNECTING SUCCESS WITH POTENTIAL CRESCENT ENTERPRISES CEO BADR JAFAR

ome of the nation’s most active entrepreneurs are Sharjah-based, now they’re teaming up with the Sharjah Tatweer Forum to bring their experience to the table for the good of future ‘treps. The Sharjah Tatweer Forum, a non-profit independent entity founded by H.H. Badr Jafar, CEO Crescent Enterprises and Managing Director of Crescent Group and Jassem Al Bloushi, Chairman Sharjah Tatweer Forum

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Sheikh Dr. Sultan Bin Mohammed Al-Qasimi, Member of the Supreme Council, Ruler of Sharjah, is collaborating with the American University of Sharjah (AUS) to launch the Sharjah Leadership Program (SLP), focused on entrepreneurial education. Crescent Enterprises, led by CEO Badr Jafar, recently signed a partnership agreement with Sharjah Tatweer Forum to support the launch of the SLP, in hopes of furthering the Emirate’s business community’s aspirations. SLP candidates will receive lecture-style tutelage at AUS, participate in hands-on workshops and projects, as well field training- including visits to various Crescent Enterprises sites. The SLP begins in September 2014 and will run for a period of six months encompassing 19 sessions, with a student capacity of 20 Emirati candidates and four expatriate candidates.

AUS LIBRARY © BASIL D SOUFI | LICENSE CREATIVE COMMONS

SHARJAH’S FUTURE ENTREPRENEURS ARE GETTING A LEG UP

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INNOVATORS

‘TREP TALK Q+A

BADR JAFAR DISCUSSES THE SHARJAH LEADERSHIP PROGRAM

Programs such as this are fundamental in contributing to the development of Sharjah and indeed the whole UAE through its future business leaders, and something we are very proud to be a part of. I believe the most important part of the program is the intense mentoring that the participants receive, which is crucial in developing entrepreneurial ideas into revenuegenerating and sustainable businesses. Although many aspiring entrepreneurs may be highly educated or even experienced in a certain area, they may not possess all the skills and knowledge necessary to establish and grow a business, and this is where mentoring and guidance is so important. Of course, there are other challenges which face entrepreneurs, such as access to capital, but without the right knowledge and support from businessmen and women who have successfully worked in the region tackling these challenges, it would be a lot harder to transform great ideas into meaningful businesses. HOW WILL THE SHARJAH LEADERSHIP PROGRAM CHOOSE POTENTIAL CANDIDATES FOR THE ENTREPRENEURIAL PROGRAM?

This program, developed by Sharjah Tatweer Forum, looks to cultivate leaders who are well-informed and focused on the development of the Emir22

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ate of Sharjah, with an insight into domestic, regional and global trends in innovation and sustainability, so there are a number of attributes taken into consideration when looking for potential candidates. The program is open to bachelor degree holders aged between 25 and 35 with a minimum of three years of experience working in public or private sectors. In addition to reviewing their educational achievements, potential candidates are subjected to rigorous testing, including psychometric tests based on aptitude and personality. Once they have assessed the scores of all candidates, program leaders will then meet with each one–on-one for a

HOW DO YOU SEE SHARJAH’S REPRESENTATION IN THE ENTREPRENEURIAL YOUTH SPHERE COMPARED TO OTHER EMIRATES?

Sharjah has some great organizations and support groups in place to develop entrepreneurial talent across the Emirate. As well as the Sharjah Leadership Program, the Sharjah Tatweer Forum manages several initiatives to support Sharjah’s youth in turning their business ideas and passions into reality. The Sharjah Chamber of Commerce and the Sharjah Business Women’s Council also work hard to provide the same type of support to

aspiring entrepreneurs, and Ruwad, part of Sharjah’s Department of Economic Development, provides mentoring as well as funding. On a wider scale there are many organizations doing the same essential work across the rest of the Emirates, and we are all very fortunate to be working together for the development of a stronger and even more successful UAE. As a private sector firm, Crescent Enterprises will strive to play a significant role in developing and supporting entrepreneurship in the country by nurturing young talent and entrepreneurs, providing them with a platform and the required resources to establish and scale up their businesses. To this end, we also recently launched ‘CE Ventures’ as our own incubator to launch new ideas developed from within the UAE; we are already working on nurturing six new ideas in various sectors.

The American University of Sharjah, main building

AUS MAIN ENTRANCE © BASIL D SOUFI | LICENSE CREATIVE COMMONS

AS AN ENTREPRENEUR AND ONE OF THE REGION’S THOUGHT LEADERS, WHAT DO YOU THINK IS THE MOST IMPORTANT PART OF THIS PROGRAM?

more personal understanding. Each individual is obviously different, so is each opportunity, so you can’t employ a one-size-fits-all approach; the program will be assessing each entrepreneur on a case by case basis.

WHO DEVELOPED THE SHARJAH LEADERSHIP PROGRAM? HOW WILL THE PUBLIC AND PRIVATE SECTOR WORK TOGETHER TO FOSTER ENTREPRENEURIAL SUCCESS?

The program is the brainchild of the Sharjah Tatweer Forum. What is significant about the participation of companies like Bee’ah, Gulftainer and Crescent Enterprises in the Sharjah Leadership Program is the partnership between the public and private sector in supporting the identification of and development of entrepreneurs. The government has a wealth of resources to facilitate this development, while the private sector brings the expertise of those who have first-hand experience in starting new business, therefore a collaboration between the two is vital. There is often overdependence in our region on the public sector to solve our socioeconomic challenges, and I personally believe there needs to be a better balance between public and private support and engagement, which is why we are so delighted to be working with Sharjah Tatweer Forum on this initiative. DO YOU FEEL THAT THE SLP PLAYS A ROLE IN EMIRATIZATION? CAN YOU DISCUSS THE DECISION TO INCLUDE EXPATS IN THE PROGRAM?

Emiratization is about nurturing our local talent to become the business leaders of tomorrow behind the development and growth of the Emirates. Programs such as this make a huge contribution to the overall goal of Emiratization, equipping candidates with the necessary support and guidance. At the same time, also it is also very important to recognize the immense value and expertise that expats bring to the Emirates, and it is imperative that nationals and expats continue to

work together in achieving our common goals. With this in mind, it has already been decided to include a number of expats in the program who will be working alongside our Emirati youth and also benefit from this training. AS AN ENTREPRENEUR, HOW IMPORTANT DO YOU FEEL THAT MENTORSHIP AND GUIDANCE IS FOR STARTUPS IN THE REGION?

It is increasingly recognized that mentorship and guidance are crucial in helping develop entrepreneurial ideas into fully functioning SMEs, providing entrepreneurs with access to a close support network to guide them through the process of achieving business success. Research conducted by Ernst & Young suggests that 88% of entrepreneurs who have mentors and the right support systems have been successful in establishing their businesses, while 50% of those without the necessary support have failed; therefore it is imperative that entrepreneurs make use of all support networks available to them. In my opinion, we are especially lucky in the UAE to have initiatives such as the Sharjah Leadership Program to provide such support, as well as several highly effective local networks across the UAE specifically designed to help entrepreneurs and small business owners. DOES CRESCENT ENTERPRISES SEEK TO SUPPORT SOCIAL ENTREPRENEURS AND BUSINESSES?

We are in a world now where businesses can do good, while doing well. There is no doubt in my mind that through purpose-driven business practices and investments, we can better tackle our region’s socio-economic challenges head on, and this is what drove me towards advocating and supporting social entrepreneurship in the first place.

“ALTHOUGH MANY ASPIRING ENTREPRENEURS MAY BE HIGHLY EDUCATED OR EVEN EXPERIENCED IN A CERTAIN AREA, THEY MAY NOT POSSESS ALL THE SKILLS AND KNOWLEDGE NECESSARY TO ESTABLISH AND GROW A BUSINESS, AND THIS IS WHERE MENTORING AND GUIDANCE IS SO IMPORTANT.” Through my involvement with entities like Ashoka, Endeavor, Synergos Institute, and the Schwab Foundation for Social Enterprise, I am fortunate enough to regularly be exposed to highly inspiring young social innovators within the UAE and the rest of the

Arab world. It is encouraging to see an increasing trend of business leaders starting to think about their triple bottom lines in business, that is people, planet and profit, and this is an ethos which is at the core of CE Ventures incubator which we recently setup.

Badr Jafar is Managing Director of the Crescent Group, which has been operating from the UAE as a family business group for over 42 years. The Group today comprises two main companies: Crescent Petroleum, the region’s first independent and privately-owned petroleum company in the Middle East, of which Badr is President; and Crescent Enterprises, the company’s conglomerate operating across eight core sectors of the global economy, of which he is Chief Executive Officer. Badr serves as Chairman of Gas Cities LLC, a joint venture between Crescent Petroleum and Dana Gas PJSC, and serves as Chairman of Pearl Petroleum, a partnership between Crescent Petroleum, Dana Gas, OMV of Austria and MOL of Hungary. Badr is an active member of the Young Presidents’ Organization, serving as Ex-Officio Chair of the YPO Emirates Chapter. He was honored as a Young Global Leader by the World Economic Forum and is Vice-Chair of their Global Agenda Council on Energy Security. juLY 2014

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LEADERSHIP TRAINING

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

SIGNS YOU NEED TO START YOUR OWN BUSINESS

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AN ENTREPRENEURIAL TYPE READS THE SIGNALS AND SUDDENLY REALIZES IT’S TIME TO MAKE THE LEAP AND READY A LAUNCH By John Rampton

f you’re sitting at your desk, daydreaming about starting your own business, this is the article for you. You already know that launching a company can be an intimidating process requiring tons of hard work. But the question has been lingering with you day and night. Maybe you’re just unhappy with your current position. Perhaps you’ve always dreamed of opening your own shop or consulting firm. Or maybe you just need a drastic change in your life. Regardless of the exact scenario, here are 50 signs that you may be seriously ready to start your own business.

1. THE LIGHT BULB WENT OFF. Lately many are debating

whether entrepreneurs are born or made. No matter which side you agree with, perhaps you’ve been aware that you exhibit some classic entrepreneurial traits. Maybe you’re ready to take the leap and start a business? Even if you weren’t born that way, you may have later developed some of these traits, such as a driving passion. So if you begin to notice the signs, perhaps you could launch that business of your own.

2. YOU’RE ALWAYS THINKING. Entrepreneurs never stop cogitating. It’s a blessing and a curse. Should you exhibit this behavior, maybe it’s time to move on from the daily rat race and do something to put your thoughts in motion. And there’s no better outlet than starting your own business. 3. YOU’RE PASSIONATE. If there’s one business concept that stays with you that you’ve completely fallen in love with, perhaps you could turn it into a reality. Entrepreneurs and business owners are truly passionate about what they do and will do everything possible to turn their vision into a product or service for the rest of the world to enjoy. 4. YOU’RE INDEPENDENT. This doesn’t mean that you’re

socially awkward or don’t know how to ask for help. It means that you’re a problem-solver who will try to figure out most problems on your own. Now may be the moment that you feel independent enough to build an enterprise. See James Caan’s opinion editorial on the need for mentorship in the Middle East, developed exlcusively for Entrepreneur in our ‘Treponomics section.

5. YOU’RE MOTIVATED. You don’t

9. YOU FEEL STUCK AT YOUR JOB.

If you dread waking up every morning, then you’re probably unfulfilled. A promotion or another job might abate the problem, but deep within you the prospect of an ordinary 9-to-5 gig just doesn’t excite you. Figure out whether you need to be your own boss or if you just need to do something different. 10. YOU FEEL A NEED TO PROVE YOUR VISION. Let’s say you have

always need something or someone to get you moving. You wake up every morning and do what’s needed. This sense of selfmotivation might steer to initiate and carry out a business launch.

an idea but everyone is telling you it can’t be done. What are you going to do about this situation? This experience might be motivation enough for you to try to one-up the naysayers.

6. YOU’RE ORGANIZED. Running a business requires plenty of organizational skills. At some point you may want or need to hire some experts, such as accountants or lawyers, but in the beginning you’ll probably rely on yourself to track finances, delegate responsibilities and present ideas to investors. You can’t do any of that without being organized.

11. YOU WANT TO MAKE A NAME FOR YOURSELF. Several of the

7. YOU FEEL A NEED TO HELP PEOPLE. Should you feel a strong

desire to aid others by providing a product or service, consider it one telltale sign you’re primed for starting a business. This desire to help people enhance their lives can keep you going during the highs and lows of running an operation. I’ve found over the years that the strongest companies emerge from a wish to help the world solve a problem.

8. YOU’RE CERTAIN THAT YOU CAN BUILD A BETTER COMPANY. Maybe

it’s your confidence or egotistical side coming out, but you’re realizing that you can build a better company than anyone else in the world.

greatest entrepreneurs and business owners realized that they wanted something more from life. Steve Jobs knew he was special. If you feel that way, too, then big things could come out of it.

12. YOU HAVE ALWAYS WANTED TO BE YOUR OWN BOSS. Whether

you’re a control freak or just don’t like being ordered around, you have determined you have always wanted to be the boss. 13. THE HIRING OF INDEPENDENT WORKERS IS ON THE RISE.

The Harvard Business Review reports, according to MBO Partners, the number of independent workers (freelancers, contractors or business owners) is on the rise. It’s expected to increase from about 17 million in 2013 to 23 million by 2017. And Mavenlink’s 2012 infographic, The New Independent Workforce, projected that the number of independent workers to become 40 percent of the American workforce by 2020. juLY 2014

Entrepreneur

SIGNS YOU NEED TO START YOUR OWN BUSINESS

In case you missed it, see live video footage of Richard Branson’s Dubai visit exclusively on our Instagram feed.

14. YOUR FIELD LACKS JOBS. The economy hasn’t totally

rebounded and your industry sector has a hiring freeze. Instead of waiting around or taking a job requiring fewer skills than you have, you are considering setting up your own business.

15. YOU CAN AFFORD TO TAKE RISKS. If you’re single or without young children, you probably don’t have to worry about supporting others. Take advantage of this time in your life when you have the chance to be a little adventurous. 16. YOU CAN’T STAND THE DAILY COMMUTE. If you sit in

traffic every day muttering expletive after expletive, maybe you should set up your own business at home. After all, successful businesses have even launched from garages.

17. YOU POSSESS AN INCREDIBLE WORK ETHIC. If you don’t

mind putting in 12-hour days multiple times a week (as people do when starting a business), then why not put that to work for something that you’re really enthused about?

18. YOU CRAVE UNCERTAINTY. You’re the type of person

who thrives when exploring the unknown. So starting a business may be right up your alley. It definitely beats being bored to death by performing that job that no longer invigorates you. I am this type of person and very proud of it.

19. YOU ALWAYS SEE POTENTIAL. No matter where you are

or what you’re doing, you always feel the need to make improvements. You now understand that as a business owner, you could realize enormous potential- making money or enhancing the lives of others.

20. MORE PROJECTS ARE GOING TO CONTRACTORS. If

you’re seeing your current employer hiring outside help for a job that you know you can do better, then do something about it and venture out on your own.

21. YOU WANT TO BE PART OF A TEAM. Maybe you just want to build your own team from the ground up with a group of people who share your vision and who are willing to embark on a journey with you. 22. YOU HATE WORKING FOR OTHERS. If you seriously

can’t stand taking orders, loathe your boss and all his (or her) demands, start planning your exit strategy of becoming your own boss.

23. YOU FEEL IT’S NECESSARY TO HANG OUT A SHINGLE.

While starting a business shouldn’t just be about the money, sometimes that’s the case when your back is against the wall. The bills are piling up and you need to 26

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put food on the table. That sense of desperation could be enough to lead you to do something great. 24. YOU WANT TO CREATE JOBS.

In this tough economy, you see there really aren’t enough jobs for the colleagues you studied or worked with previously. If you trust these people and know their talents, you may wish to help them out by creating a company that employs them. 25. YOU HARBOR A STRONG DESIRE TO DEVELOP A PRODUCT OR SERVICE NOT YET AVAILABLE.

You’re a problem solver. You have experienced that “aha” moment, the realization that a certain product or service isn’t on the market. You could use that moment of recognition to inspire you to make that idea a reality. 26. YOU CAN’T STAND BEING IN THE OFFICE. If you feel restricted

at your current workplace, you could set yourself free and work where you want to work: at your own company. 27. YOU WANT TO SET YOUR OWN SCHEDULE. Maybe you’re most

productive from 4 a.m. to 9 a.m. or you’re a night owl. Instead of being told which hours to

work and when to take breaks or a vacation, you could finally determine your schedule. 28. YOU’RE CREATIVE. If you’re tired of having your creative ideas go to waste, then maybe it’s time to get out there and express yourself by setting up the business you’ve always imagined. 29. YOU NEED TO INSPIRE. Are

you the person whom people turn to when they need advice or a little pick-me-up? And you actually like that role? Owning a business gives you the chance to inspire the people who surround you.

30. YOU WANT TO BUILD A LEGACY FOR YOUR CHILDREN.

You have kids and are thinking of leaving them something that they’ll be proud of. Even if they don’t want to take over a family business, they could witness how your hard work and dedication paid off. 31. YOU DON’T MIND GETTING YOUR HANDS DIRTY. You’ll have

to do plenty of grunt work as a new business owner. And that’s not always enjoyable. But if that doesn’t bother you, then why not do these tasks for yourself not someone else?

32. YOU’RE SEEKING A NEW CHALLENGE. Maybe you’ve hit

a wall at your current position and become extremely bored. That’s not always the best situation to be in if you’re someone looking for a new challenge. Starting your own business is challenging, however, you should fulfill that need.

33. YOU’RE ABLE TO SOLVE PROBLEMS. Are you the type

of person who assumes the responsibility for problem solving? Let’s say the pipes under the kitchen sink come apart and you not only fix it, you make it better than before. Take this as a sign that you can start your own business.

34. YOU LIKE TO ACQUIRE NEW SKILLS AND KNOWLEDGE.

Some people have just an unquenchable thirst to learn new skills and knowledge. You probably won’t get that from doing the same job for many years. But you can attain that experience as a business owner. 35. YOU DON’T MIND MULTITASKING. There are

people who can handle multiple tasks at once. If you’re one of those who doesn’t collapse under the pressure of multitasking, then you’re already on your way.

38. THERE’S A GAP TO FILL.

If you notice that there’s not only a market but also that no one else is capitalizing on a particular idea, then maybe you’re the one to do some disruption. 39. A POOL OF TALENT SURROUNDS YOU. Whether

you just graduated college or are observing your current workplace, you’re surrounded by really skilled people who seem to be wasting their talents. You might be able to entice them to join your startup by offering profit sharing, stock options, a fun environment or eventual advancement. 40. YOU’RE THINKING, IF NOT NOW, WHEN? Procrastination

may be the most fatal startup killer. Instead of dragging your feet, you could get the ball in motion for that business idea of your’s right now.

41. YOU UNDERSTAND THE TAX INCENTIVES. Small business

owners are eligible for tax incentives, you’ve learned. If you don’t want to lose out, then start getting to work. You may even be able to write off that new laptop or smartphone you’ve been eyeing.

42. YOU REALIZE THAT YOU’LL SEE RESULTS. When you’re

you’re probably going to encounter a failure at some moment. If that doesn’t scare you to the bone, then chalk that up as another sign.

working for someone else, it can be difficult to see how all your hard work is benefiting the company. If you want to see the direct results of your actions, then running your own business would give you that opportunity.

37. YOU COULD ARRANGE FOR YOUR OWN JOB SECURITY.

43. YOU RELATE WELL TO PEOPLE. Sometimes you just

36. YOU’RE NOT AFRAID OF FAILURE. As a business owner,

You’re noticing that one of the worst things about working for someone else is contemplating the possibility of being laid off or the company being sold. Why not create your own job security instead?

44. YOU’RE TIRED OF FEELING UNDERWATER. It’s not

uncommon to question your values about work as well as your personal life. If you keep being passed over for promotions or you feel like you’ve hit a wall, maybe it’s time to venture out on your own. Starting your own business will probably give you an immense sense of accomplishment.

45. YOU’RE A BORN LEADER.

Having a great idea is one thing. Being able to communicate that idea and convince others to jump on board is another. If you have the leadership skills to round up the troops and motivate them, consider starting your own venture. 46. YOU’RE A THRILL SEEKER.

Some people like to play it safe. You, on the other hand, are the adventurous type. Nothing is more thrilling than coming up with a business idea and seeing it through, amid all the unknowns and highs and lows. 47. YOU CAN USE YOUR STREET SMARTS. If you’re one those

unique people with street smarts as well as professional skills, then you might put those talents to work at something you’re truly excited about.

LEADERSHIP TRAINING

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

48. ENTREPRENEURS CAN NOW TAP INTO MANY DIFFERENT TOOLS AND ADVICE. You’ve

become aware there’s numerous online resources to help a novice business owner starting out. That’s not even mentioning the low interests rates available.

49. YOU’RE READY TO BREAK FREE For some time that inner

entrepreneur has been quietly nagging at you. Why not unleash it? And once you’re free to do as please, you may be surprised by how much happier you are.

50. YOU’VE ALWAYS WANTED TO DO SOMETHING YOU ENJOY

Thomas Edison once said, “I never did a day’s work in my life. It was all fun!” Many successful people have uttered something similar. Instead of merely thinking about doing something that makes you happy and content, take a leap of faith and pursue your own startup vision. If you follow your dream, everything else may fall into place. See this article in its entirety at Entrepreneur.com

See exclusive finance advice by Brndstr’s Simon Hudson in our Startup sectionhe just completed a million-dollar raise for his company.

want to get out there and network with other people. Unfortunately, your current position doesn’t allow for that. If you’re a people person, then having your own business would surely give you a reason to network more. juLY 2014

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TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

TOUGH AS NAILS… AND NOT IN A GOOD WAY

DERIVING PLEASURE FROM DEALING WITH “DIFFICULT” CLIENTS By Octavia Nasr

n any business that involves human interaction, you are bound to run into clients you deem “difficult.” In fact, difficult people are everywhere in every aspect of life, including in business. Although difficult clients are a reality every businessperson has to deal with, I find the term “difficult” to be overused and misused, even abused in some instances. Many people use it lightly without appreciation for the impact their opinion has and the weight it can carry where it can potentially unfairly damage or ruin someone’s reputation. When I hear that term used, I take it to mean: “I don’t like this person.” I tell myself not to pass judgment before I experience that person’s “difficulty”, if any, on my own. 28

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Over the years, I have been described as difficult by some people, and it is highly likely that you have been, too. I always take it seriously and try to understand the root of the claim. Sometimes I’m proud of that description, because it means that the person found me too “difficult” to alter my beliefs or compromise my principles and damage my reputation or allow certain behaviors that I find unethical to pass. At other times, I felt that the claim was true -especially in trying situations such as breaking news scenarios or instances of sensitive decision-making- or where the damage from going forward with something

THE MOST DIFFICULT CLIENT IS THE ONE WHO THINKS SHE OR HE HAS ESSENTIALLY BOUGHT YOU WITH THEIR MONEY, AND THEY EXPECT YOU TO DO EVERYTHING THEY SAY WITHOUT QUESTIONING THE LOGIC. outweighs the benefits and a firm unwavering position was necessary. One thing I do know, I am always grateful for people who let me know if I’m being problematic or hard to deal with. Honesty is always queen in my world and I adjust accordingly. So I take this lesson to clients and when one is being unnecessarily hard to deal with, I make it known in the most diplomatic ways. When all else fails, I will make my opinion known directly and without hesitation. In extreme cases, it is important to know whether to walk away from a client or to compromise and save the relationship. Every client has his or her own way to be difficult, and no two people are alike. The following descriptors are the most difficult types that I’ve encountered during my time as an entrepreneur. Are you “difficult”? 1. THE CASH GRAB

The most difficult client is the one who thinks she or he has essentially bought you with their money, and they expect you to do everything they say without questioning the logic. When you contradict them -no matter how politely and tactfully- they are defensive and usually very stubborn. You can never change their opinion no matter how wrong you think it is. The best way to deal with them is to allow them to think about your suggestions and reformulate them in their own words, giving them the opportunity to claim ownership over the idea or concept.

2. THE CENTER OF THE UNIVERSE

The egocentric client is annoying with a potential of being difficult. They expect you to be available to them at any time of the day or night. They relentlessly contact you via email and SMS and through all other social means until they hear back from you. A client like this becomes so dependent on you that they start blaming their failures on you. For certain professions, where it is necessary to be close to a client, this becomes a serious problem because the only solution seems to be creating a buffer between you and them and that can end up being very damaging to the working relationship. 3. THE EDITOR

The client who likes to correct your copy because they are used to doing so with their employees. They act like teachers who love to use a red pen scratching words out, adding commas and semicolons. They change a sentence construction and suggest what they believe is a better ways to express a thought. All this can be good if the changes are in the right places (and for a good reason). But the difficulty stems from the client weakening the copy, losing the main idea, killing the flow and destroying the thought-process. Another danger here is how this compulsive behavior destroys the team’s morale with constant nonsensical and contradictory changes.

4. THE SHAPE SHIFTER

The client who has a restructuring agenda and hires you to do their dirty work for them. These ones are sneaky and ill-intentioned, but they lack the courage or experience to let people go. They put consultants and strategists in an awkward position: In one instance, after an honest assessment of the value each employee brings and after drawing a map for redistribution of duties and responsibilities, a manager shared her own list of people who “must go.” One of the hardest situations I had to deal with personally is agreeing to simply eliminate staff based on gender, age and looks rather than qualifications, favoritism and functionality. I am still searching for the best way to deal with that. 5. THE INEFFECTIVE DELEGATOR

The unfocused client who depends on his or her personal assistants (executive assistant, office manager or even significant other) to make decisions, conduct business or hold negotiations on their behalf. These are usually difficult to deal with because they are not available and because their assistant, no matter how qualified, is not them and should not be in a position to speak on their behalf because in most cases they end up on a power trip. This leaves room for confusion, misunderstandings and forced conflict that can’t end well for the client and the client might never

realize that until it is too late. Comedy is my outlet: I often find myself laughing hard when talking about my most difficult clients in circles of friends and colleagues. I believe the more difficult the client, the more room for comedy there exists, the standup comedy type where it is easy for anyone to identify with the stories and characters. Difficult clients are difficult for a reason. Once you understand the reason, it becomes easier to maneuver your way around them, and to manifest results that are positive for both you and them. Difficult or not, we need clients and they need us. Just like any other relationship, it is bound by principles and framed by best practices. No matter how difficult a client is, as long as they respect you and appreciate what you do for them, they deserve to be served wholeheartedly and with the highest standards. Either this or walk away and preserve your dignity and peace of mind.

ONE OF THE HARDEST SITUATIONS I HAD TO DEAL WITH IS AGREEING TO SIMPLY ELIMINATE STAFF BASED ON GENDER, AGE AND LOOKS RATHER THAN QUALIFICATIONS, FAVORITISM AND FUNCTIONALITY.

Octavia Nasr is the founder of the United States-based Bridges Media Consulting (BMC). Specializing in integrating traditional and digital media, media and newsroom management consulting. BMC also executes staff training, talent coaching, in addition to reputation building and management. BMC serves an elite clientele of brands, businesses, and individuals in the Middle East, North Africa, Europe, the U.S. and Asia. Nasr moved to the entrepreneurial world in 2010 after a long career in journalism, 20 years of which were in various senior positions including Executive Producer, Anchor and Senior Editor of Mideast Affairs at CNN. Nasr’s first job was with LBC in Lebanon; she served as Assistant News Director, Executive Producer and later War Correspondent. To read Octavia Nasr’s opinion editorials, visit her blog octavianasr.com and follow her updates on Twitter @octavianasr. juLY 2014

Entrepreneur

TECH

Away from keyboard TPB CO-FOUNDER ARRESTED AFTER YEARS ON THE LAM

f you’ve downloaded illegal torrents, then you’ve heard of the file-sharing website, The Pirate Bay (TPB). After years of being on the run, Peter Sunde TPB co-founder, was apprehended in Sweden and sent off to serve his sentence. Found guilty of violating copyright laws, the co-founder also known as Brokep, has been pursued by Interpol since 2011 and will now serve the eight-month jail term meted out in 2010. At the time, Sunde was also fined 46 million SEK (TechCrunch), with several failed appeals of trying to reduce prison time from the sentence, along with co-founders Fredrik Neji, Carl Lundstöm, and Gottfrid Svartholm Warg. Lundstöm has already served his time and currently resides in Switzerland, while Warg was arrested in Cambodia in 2012. Only Neiji remains at large and according to multiple news outlets is believed to be in Asia. The story of the co-founders legal difficulties was partially chronicled in popular documentary TPB AFK: The Pirate Bay Away from Keyboard released in February of last year. Though Sunde has exited TPB, he has stayed visible and active in tech circles- at one point even campaigning to become a member of European Parliament. In 2010, he co-founded Flattr, a social micro-donations startup that lets users pay online creators to support them, relying on funding from Passion Capital and others.

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Quite ironic, coming from someone whose previous platform advocated free (albeit, illegal) content for all. Passion Capital board member Eileen Burbidge told TechCrunch that she is saddened by Sunde’s arrest, adding that it’s in “stark contrast” when compared to similar individuals who are considered “wunderkinds” and pioneers of content file-sharing and peer-to-peer development like Napster’s Shawn Fanning and Sean Parker, and Kazaa co-founders Niklas Zennstorm and Janus Friis. Burbidge also pointed out that P2P Napster and Kazaa both settled civil lawsuits, while TPB faced criminal prosecution and custodial sentences. As of last August, TPB has been operational for a decade and continues to function, now run by a non-profit organization registered in Seychelles.

Till Facebook do us part… SOCIAL MEDIA PRENUPS TO PREVENT COMPROMISING YOUR ONLINE REPUTATION

n a world where an embarrassing picture or an inappropriate tweet could cost you your job, or ‘revenge porn’ from scorned exes can appear for sale online, a new need has presented itself: the ‘social media prenuptial agreement’. It’s basically a legally binding document or a discourse on what’s allowed to be published online about your significant other. According to ABC News, Ann-Margaret Carrozza, a New York-based lawyer, says that about a third of her clients are now opting to have “social media clauses” in their prenup or post-nuptial agreements. Apparently it’s based on a sliding scale with the price for breaching the agreement relative to a person’s wealth- Fast Company mentioned that at least one couple agreed to pay up US$50,000 for a violation (such as posting an unflattering swimsuit pic). The American Academy of Matrimonial Lawyers stated that social networking as an element in divorce cases is increasing steadily, and a 2013 Gulf News report positioned social media addiction as the seventh reason for UAE divorces and separation. With the amount of social media mishaps soaring, have you and your S.O. had the talk yet? After all, love is a battlefield… especially on the Wild West of the internet.

Make it possible HUAWEI ASCEND P7

TECH

YOU’RE THE ONLY ONE FOR ME MICROSOFT SURFACE PRO 3 By Tamara Clarke

Can a tablet really replace a full-fledged laptop? The developers over at Microsoft Gulf sure think so. They’ve announced the availability of their new Surface Pro 3, designed to replace your laptop (and all of your other gadgets for that matter). With a large 12” ClearType full HD display, two 5MP cameras and a fourth generation Intel Core processor with 8GB of RAM, Surface Pro 3 is positioned to be the only device you need for both work and play. What’s the secret behind this dynamic two-in-one? The optional Surface Pro Type Cover and Docking Station that allows you to prop it up on your lap to type on the go, flip the cover back to use it as a tablet or draw with a Surface Pen. Surface Pro 3 can mimic a laptop, but it functions like a mobile device running Windows 8.1 Pro. It also features a full size USB 3.0 port and microSD reader. With so many desirable features, could the Surface Pro 3 be your one and only? Huawei has kicked things up a notch with the new Ascend P7 smartphone. With a 5-inch full HD display, 13MP rear facing camera and 4G LTE capability, it seems like every other smartphone on the market. So what sets it apart from the pack? First, the Ascend P7 has an 8MP 5P front facing camera that comes with a non-spherical lens and panorama function for taking better selfies. The

wider viewing angle also makes it easier to capture everyone in a notorious group shot (or a ‘groufie’ for all you cool kids). A picture is worth a thousand words or at least 10 seconds of audio when using the Ascend P7. Huawei has also added a new dimension to photos with the Voice Photos function: it records 10 second audio clips with every photo taken. How’s that for innovation! -By Tamara Clarke

| MOBILE TECH |

GAME ON IN THE GCC

Ubisoft and twofour54 release first mobile game developed in Abu Dhabi

Hardcore gamers and future videogame developers in the region will be pleased to hear that Ubisoft has developed its first mobile game out of their recently opened Abu Dhabi office. Based on the award-winning television series, CSI: Hidden Treasures, will be available on smartphones and tablets. The French multinational videogame company opened its first Middle East office December 2011, and brought in some of its veterans to manage and train during the initial stages. Located in Abu Dhabi’s media zone authority, twofour54, Ubisoft is also involved in training the UAE’s

future videogame developers at their gaming academy. Ubisoft has offices around the world, but has an interesting partnership with twofour54, who aim to establish the ultimate media hub in the MENA region. In less interesting gamer news, Kim Kardashian has released a game (cue eye-rolling). Why play Candy Crush when you can journey with your virtual character on the road to stardom? We’re talking photo shoots, dates, and other activities of the fame-hungry. In terms of gaming downloads, we suggest you stick to CSI: Hidden Treasures. At least they’ve got a clue! juLY 2014

Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

Making the case for mentorship

To see business boom, established ‘treps need to take new businesses under their wing By James Caan

ith unemployment in the Middle East region rising and now standing at 10.9%, the highest regional rate in the world (ILO, 2013), Arab countries alone need to create approximately 80 million new jobs by 2020 according to the World Bank. It is a daunting goal but I have always been a firm believer that entrepreneurship is the best method for job creation. Businesses are the key driver of any economy, and the more successful entrepreneurs there are, the better the chances of creating jobs.

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I have been to the Middle East on a number of occasions, particularly as one of my businesses 90 North conducts transactions for investors there. There is absolutely no question in my mind that the spirit of enterprise is well and truly alive within the region. However, one area where there is room for improvement is the issue of giving entrepreneurs the required support system to succeed –primarily growing a culture of mentorship. Running a business is one of the most challenging things you can do, and you cannot underestimate the importance of mentorship. It is the most significant tool any entrepreneur can access- somebody experienced and impartial that you can turn to for advice. Mentors can be a sounding board for any ideas you may have, they can provide honest feedback, and they can inspire you to realize your potential. There is sometimes a school of thought amongst entrepreneurs that asking for help is a sign of weakness, but it isn’t. Being aware of your weaknesses is strength in itself, and having a mentor to guide you can only be a good thing. When I started my first business over 30 years ago, the one thing I didn’t have to begin with was a mentor. I made mistakes, as any entrepreneur does in their early days, but I wonder whether I could have avoided some of these if I’d had someone to turn to. That’s why I’m so passionate now about passing on my knowledge and experience now. I am Chairman of the UK Government’s Start Up Loans Company, where budding entrepreneurs are given capital to start businesses.

hours on a landline. Nowadays you can even conduct sevenfigure deals while being on the other side of the world thanks to smartphones and tablets! I regularly use social media, namely my LinkedIn Influencer Blog and my Business Secrets App to share some of my experiences with a worldwide audience. And the mere fact that I am able to give these little bits of advice to Middle Eastern entrepreneurs whilst sitting at my desk in London illustrates the power of technology further.

Crucially, every entrepreneur who successfully applies for funding also gets access to a mentor– a person who knows what starting a business is about and the potential pitfalls to avoid. Even in my day job at Hamilton Bradshaw Private Equity, I see myself as a mentor to every single CEO within my portfolio, no matter their career stage. They know that they can come to me at any time for advice. When we were in the midst of the 2008 recession, our portfolio didn’t suffer as much as ex-

pected– in fact it actually grew in value. One of the reasons for this was that I had been through a bad recession before in the early 90’s. The business I was running back then went through some extremely rough times, but it recovered and the lessons I’ve learned were passed on to the CEOs I currently manage. Mentorship is about developing the whole person and maximizing the potential of the business. When I start out mentoring a new budding entrepreneur, these are three of the tips I make sure to share with them.

CASH FLOW A lot of entrepreneurs operate on an accrual basis, but I would urge people to go back to basics, especially if you’re just starting out. Operate on a cash basis. If you’ve completed an order and have invoiced for it– I still wouldn’t class that as revenue until the cash is actually in the bank. At the end of the day can you pay your staff or your bills with an invoice? No, so only account for money that you actually have. BUSINESS FLEXIBILITY Another key thing to remember is to stay current and flexible. A few years ago I invested in a high-street shop that wasn’t flexible and in-tune with its customers. Quite simply, it didn’t work out. The same has happened to many large companies over the years. Businesses that are flexible find it easier to adapt and survive so this is something I urge every business owner to be aware of. Look at your competitors, talk to your customers, constantly analyze the way you do things, and adapt. TECHNOLOGY Thanks to technology, anybody, anywhere, can now help others along their entrepreneurial journey. Gone are the days of only being able to speak to others during office

My hope is that entrepreneurs globally begin to seek out their own mentors and that successful entrepreneurs continue to create an environment where failure is celebrated as a valuable learning experience. When you take all of this into account, there really is no reason why entrepreneurs who have been there and done it, should not be giving back to the business community in the form of advice.

James Caan is one of the UK’s most successful entrepreneurs. He made his fortune through the global success of his recruitment companies, Alexander Mann and Humana International, before founding private equity firm Hamilton Bradshaw in 2004. He is best known for joining the panel of the hit BBC show Dragons’ Den, and more recently, The Business Class on CNBC. A passionate supporter of small businesses, James chairs the Government’s Start Up Loans scheme, which provides funding and mentoring to budding entrepreneurs. James Caan’s free Business Secrets App is now available for download on iTunes and Google Play. juLY 2014

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OVERLY FAMILIAR

in more ways than one iOS 8 overview

henever Apple announces a new iOS operating system, you can expect the entire tech crowd to be polarized; you either love it or hate it– there is no such thing as indifference. Many iOS users have been put off by some recent updates (Apple Maps, anyone?), but the folks over at Apple are saying that iOS 8 is a whole new experience, stressing that app developers in particular are going to love what it has to offer. But what does iOS8 have to offer for us ordinary users? One notable feature is iOS 8’s upgraded messaging system, allowing users to now send video and

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By Kareem Chehayeb

audio messages, start group conversations, and share locations. Sounds familiar, doesn’t it? There’s also an upgraded iCloud Drive on iOS 8; you can open up any file in your iCloud and work on it on your device. Hold on a second, that sounds familiar too… There’s also a built-in health app that has a heart rate monitor, and… that also sounds familiar. We’ll get back to this serious sense of tech déjà vu in a bit. Now let’s look at the standout aspect of iOS 8 the new features and options for app developers: Over 4000 new APIs (application programming interfaces)

that Apple claims will take development to a whole new level. Some of the attentiongrabbing ones are the option to sign in to third-party apps using Touch ID, and the ability for photo apps to have their pictures edited and saved directly in the Camera Roll. The one that I think is the most interesting is being able to use iCloud to sign into apps without needing to create an account, and I can imagine that being the most beneficial for users. A lot of iOS 8’s updates for its general user-base aren’t necessarily the market’s greatest innovations. That being said, these upgrades are interesting because they combine features that are found in both built-in and third party apps. The new APIs for app developers can become successful, but I think it’ll take some time. Developers need

to experiment with these different features, and I can expect some of them to have a few bugs that need to be sorted out. It could prove to be a huge success in the medium to long-term, unless Android has something else in store for us. ONE NOTABLE FEATURE IS IOS 8’S UPGRADED MESSAGING SYSTEM, ALLOWING USERS TO NOW SEND VIDEO AND AUDIO MESSAGES, START GROUP CONVERSATIONS, AND SHARE LOCATIONS.

All in all, iOS 8 looks interesting, but we’ll really see its potential with the new features available for developers. It seems like Apple is really trying to take on its competitors, and at this stage in the game it’s too soon to tell what the outcome will be.

SOMEONE IS ONTO TO “THINKING DIFFERENT”, AND IT ISN’T WHO YOU EXPECT

Google trumps Apple as most valuable brand in the world giant’s innovative streak and Apple’s lack of thinking “different” was the tipping point (and we tend to agree). Google has had a good year– its Android mobile operating system is steadily gaining popularity, Google Glass is consistently creating headlines in the wearable-tech space, and Google’s self-driving car caused a global buzz. There’s also Google X- the company’s secretive research lab that’s always got something up their sleeve, not to mention its inimitable

search engine. Meanwhile, Apple, which had breakthrough launches over the years under Jobs, has been criticized for simply introducing upgrades to its products. Although, Apple has recently acquired digital-music company Beats, so maybe all is not lost just yet. Other tech companies on the list are Amazon as the first online retailer entering the Top 10, Chinese social network Tencent, Facebook, and Twitter and LinkedIn making the list for the first time. The

research, which has surveyed two million consumers in more than 30 countries, reportedly base a brand’s value on three measurements. First, on how “meaningful” the brand is, next how “different” it is, and finally, how “salient” the brand is. Calculations are made based on “brand earning” and “brand’s financial value”, which BrandZ incorporates with surveys to examine whether a brand can “stand out from the crowd”, induce desire and foster customer loyalty. With a 16% rise in BrandZ’s technology category list, it’s a sign of the times that the tech industry is strong as ever. Good job Google, but with all this newfound influence, you have to promise to keep your mantra alive and well: Don’t be evil. Pretty please?

INFOGRAPHIC MILLWARD BROWN OPTIMOR’S 2014 BRANDZ TOP 100 MOST VALUABLE GLOBAL BRAND

he verdict is out: Google is the world’s most valuable brand, outshining Apple. According to the latest findings from market research firm Millward Brown Optimor’s 2014 BrandZ Top 100 Most Valuable Global Brand, Apple, which has reigned the title for three years, has dropped 20% to $147,880 million while Google’s brand value leaped to 40% in the last year to the tune of $158, 843 million. What boosted Google’s standing? Apparently, the tech

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Visual platform potency Can Instagram really launch your business? by Danielle Kamar

hether a startup or an established brand, all businesses have one common chip to play: social media. For entrepreneurs especially, the rise of social networks for digital marketing has offered a new, free arena to use for brand awareness and visibility. The cost of a traditional office space, with all the bills it brings, is spared through the free platforms that allow niche targeting straight to a potential customerâ&#x20AC;&#x2122;s phone, complete with product feedback. While veteran startups may manage to live on a wellmaintained Facebook page,

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Instagram has proven to be a better option for new names looking to breakthrough. Not only is it the most popular visual platform of the region, it is also better integrated with hashtag discovery, both of which work hand in hand to help spike user interest. Instagram has already contributed to the launch of several regional and local talents like designer Alanoud Al Badr, better known as Fozaza in fashion circles, Butter Dessert, a Dubai-based bakery who now only works on prebooked orders, and Ahlam Al Najdi, who made international headlines in 2013 for being the first KSA female to reach one million followers with her lifelike clay sculptures of desserts. She has since written two books about her craft. All three started their businesses online with no physical office and a strong reliance on Insta- basically word of mouth to grow brand awareness.

Despite drawing from different fields, the three Instagram accounts have a common range of best practices that an aspiring entrepreneur can integrate to grow their own brand visibility. Three points of relevance when considering Instagram for your brand are discoverability, share factor, and the product itself.

enough character to unify the community around them, and encourage followers to share them to their personal accounts as a reflection of who they are. In this sense, Instagram becomes the digital water cooler conversation where brand content needs to be catchy enough to be talked about. 3. PRIORITIZE QUALITY

1. QUALITY HASHTAGGING

As a fresh account for a brand, discoverability comes through using the correct hashtags for the content to be found by the intended audience. There is a balance to maintain between a mix of general hashtags and popular ones that would apply, without falling into hashtag frenzy. It will get tempting to tag every other word, but this will only dilute the ability of drawing in users with the same interests. 2. UNIFYING CONTENT

Share factor feeds off a brand’s identity and revolves around having content people would want to show their friends. Posts need to have

Last but not least, the product itself needs to be worthwhile for the social marketing efforts to translate into tangible results for the company. A common misconception is that a strong social presence can forgive quality shortcomings. Loyal followers will continue to interact with a brand if they are truly able to relate to its core identity, and they will continue sharing its content, but they will not as easily be turned into consumers from there. If the service being marketed does not live up to expectations, the social strategy on Instagram becomes limited to the platform instead of being a launch pad to create business interactions.

The first rule of CIA is... you do not talk about CIA CIA joins Twitter with a witty first tweet By Pamella de Leon

uess who just joined the 21st century? The U.S. Central Intelligence Agency (CIA) has joined Twitter, coming up with its first (and probably, most notable) tweet: “We can neither confirm nor deny that this is our first

tweet.” The tweet is a historical allusion to the “Glomar response” popularized by the CIA in the 70s after a journo investigated a Russian submarine and accused the CIA of a cover-up, prompting the CIA to reply that they would “neither confirm nor deny” the theories (Time). Just in case anyone thought it was a parody account, the next tweet was more timid: “We look forward to sharing great unclassified content with you.” Their first foray into the Twittersphere was shortly after their Facebook debut, joining their already-

active Flickr and YouTube accounts. Making up for lost time, the agency, according to The Verge, will post career opportunities, trivia, live-streamed events, historical facts, and “reflections on intelligence history”. The CIA joins the U.S. State Department on Twitter, who are known for their blunt approach of “trolling America’s enemies” by replying to accounts with appalling pictures of dead soldiers and beheaded civilians to discourage online recruitment (Mother Jones¬). Let’s hope the CIA opts for a NASA-like Twitter voice instead of the State Department’s hardline approach. So far it looks like they’re choosing funny over fundamentals. juLY 2014

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STOP FOR A MOMENT. ASK YOURSELF ONE KEY QUESTION: WHAT HAPPENS IF YOU BREAK UP? 3. UPWARD AND ONWARD If the object of your affections gets a promotion, you’ll want to quit. Seeing an ex do better than you is deadly, especially if they’re in the same field and you were at parallel career-levels. Things might get really weird if the colleague turned ex gets promoted to a senior position managing you. The same can be said if you get promoted above your ex.

DANGER ZONE THE INTEROFFICE ROMANCE By May Rostom

ooking like a magazine 1. CLOSE QUARTERS If you break up, it’ll be awkward. Depending on the cut-out, your new colsize of the company you work at, the league comes in with a smaller the office, the more awkward basket full of papers, a stapler, the end of this liaison will be. Sorry some stationary, and a little to burst your bubble so soon, but you plant, only to sit down in the gotta face the facts. If you run into cubicle next to you as the new them by the water cooler or downrecruit on the team. Can you stairs in the parking lot, it’ll suck for the both of you. sense the temptation building? After five minutes of heavy 2. TERRITORIAL CLAIMS If he or she sweating and hot flashes I realstarts to like someone else on the ize, okay, I like him… In fact I love team, you’ll want to kill them both. him. Your head drifts away and Even if you didn’t really like him or you start planning your lunch her all that much, seeing them with breaks together, your drab work someone else from the office will pique your curiosity (and not in a week becomes all exciting in good way). Your lunch breaks will your head, and suddenly you’re involve you stalking the new couple ready to have an office affair all around the premises… this is not with the newbie. Stop for a mo- cool, nor is it okay. The green-eyed ment. Ask yourself one key ques- monster is a difficult look to hide. tion: What happens if you break up? That question right there is THE RELATIONSHIP HAS AN exactly why you shouldn’t date EXPIRY DATE. BEING IN CONSTANT someone you work with! Not yet CLOSE CONTACT WITH YOUR convinced? Let me elaborate PARTNER DAY-IN DAY-OUT WILL on why you should avoid dating SET YOUR ROMANTIC ENDEAVOR your colleague at all costs: UP FOR FAILURE. 38

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4. OVEREXPOSURE The relationship has an expiry date. Being in constant close contact with your partner day-in day-out will set your romantic endeavor up for failure. Not having enough space to meet new people, and make new friends, will bore one of you (or both of you) easily. Why even bother? Keep your personal life separate from the get-go.

As much as dating a colleague may seem 007-ish and fun, it can get messy pretty quickly. Make sure you avoid that office romance for the security of your career. You need to remember that it’s a minefield of disappointment waiting to happen, and when the inevitable happens, you’ll not only be dealing with hurt feelings, you’ll also be affected at work.

HR INTEROFFICE DATING STATS By John Patrick Pullen Secret lovers, yeah, that’s what we are. According to a survey of employees and HR professionals by the Society for Human Resource Management (SHRM), 42% of businesses had instituted either written or verbal workplaceromance policies, up 20% from 2005. However, 75% of HR professionals believe having employees sign “love contracts” is ineffective and simply causes them to hide their interoffice relationships. Evren Esen, SHRM’s Survey Research Center manager, explains.

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What did you find surprising in the survey results?

We asked employees whether they’ve been involved in a workplace romance, and I think the difference between what employees admit (24% say they have been involved) and what HR professionals are saying (43% have been aware of relationships) stands out.

Finding it a challenge to boost your morale? ‘Trep tunes to keep you on the up and up By Shoug Al Nafisi

We’ve got your back! From the early morning shower song to get you suitably pumped, to your investor-score victory dance, this playlist will help you keep your chin up, not to mention sounding pretty great when you want to celebrate. Check out our feel good beats and tweet our way with your own #TrepTune at @entmagazineme!

What are the best and worst kinds of relationships to have at work?

In 53% of relationships, employees are in different departments. These are the best type because they’re not actually in the same workplace. They may have a relationship, but it’s not necessarily something that others may be involved in or aware of. I think the worst type of relationship is between a supervisor and his or her direct report, which were found in 8% of organizations. Proximity is an important guideline; the closer the proximity, the more likely it is to have a negative impact. Over a five-year period, about 50% of HR respondents saw flings turn into longterm relationships or marriages.

Work is a big part of many individuals’ lives, so romances can turn into long-term relationships. It’s not so surprising... it’s just that there need to be some boundaries and guidelines to ensure that their relationship will not lead to unfair or perceived unfair treatment. See this article in its entirety at Entrepreneur.com

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MOOD GETTING YOUR GAME ON EVERY MORNING Empire State of Mind The Blueprint 3 2009 Jay Z and Alicia Keys Positive affirmation early in the day is great for your drive- plus to boot Jay Z is one of the most successful entrepreneurs out there… even before he went legit. This here is a call to step back, look around, and get inspired to put ideas into play and make it happen.

MOOD LEAVING YOUR CAREER TO BECOME A ‘TREP It’s My Life | Crush 2000 Bon Jovi It’s a big step, so you need to both celebrate and give yourself a re-affirming burst of courage. Remember the reasons you took this road in the first place, keep your eye on the prize, and get on track! If you think it might not be the right time to leave your career for a ‘trep endeavor, remember: “It’s now or never!”

MOOD FIELDING A PITCH REJECTION Eye of the Tiger Eye of the Tiger 1982 Survivor When in doubt, bring out the big guns. This Rocky III classic gets your fists ready to take on the big and bad that get in your way. A real T.K.O. is all about timing, so here’s to keeping it steady and strong in the fast lane.

MOOD MOTIVATING YOUR TEAM On My Way 2013 Charlie Brown If you notice your team dragging their heels a bit and feeling like the big break just isn’t going to happen, this here is your cue to get your stuff together. You’re leading by example, and setbacks are nothingand most of all, you’ve got to remind them of that.

MOOD YOUR SECOND ROUND OF FUNDING I Feel like Money Mann’s World 2010 Mann ft. 50 cent Kick-start your ego with a fake it ‘til you make it kind of tune. This positive attitude will set the tone for the rest of the day, so be certain that you are already on the way to making the money happen. juLY 2014

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Scent scene Hermès takes five

For ‘treps who like a morning indulgence, we suggest the streamlined Hermès range of body care products. The selection of five fragrant hair and body washes in a smooth gel texture gives you ample choice. Based on their famed cologne range, the body care products are unisex, and subtle enough that they won’t conflict with your other scented products. Fans of lighter, crisper scents should opt for Eau d’orange verte or Eau de pamplemousse rose, while those who prefer a more complex scent will enjoy the House’s Eau de mandarine ambrée or Eau de gentiane blanche. Available across the GCC, you may also want to pick up the matching hand and body cleansing gel for multi-use.

EDITOR’S PICK HERMÈS EAU DE NARCISSE BLEU With notes of orange blossom and galbanum, narcissi and a gentle woody accord, Eau de narcisse bleu is the highlight of the Hermès unisex body care range. The House calls this particular fragrance an “unusual homage to freshness.”

You’ve got baggage! TRAVEL SOLUTIONS FOR ‘TREPS

FOR HIM BOSS Malga two-tone leather briefcase The front exterior pocket with zip closure and adjustable, webbed shoulder strap are two standout features. This sturdy bag is great for frequent business travel- a fabric-lined interior clears it for your electronics, and the extended zip closure qualifies as ergonomic. RUNNER UP Liffo leather weekender by HUGO Bamako leather weekender by BOSS

FOR HER HUGO Lively-E leather shopper In addition to a roomy fabric-lined interior space and clean lines, the Lively-E is made from fine quality calfskin. With a detachable, adjustable shoulder strap and the option of two pull-out handles, this bag can fill both the need for on and off the clock needs. RUNNER UP Lucille-E calfskin handbag with top handles by HUGO

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HAVEN’T YOU EVER HEARD OF A GENTLEMAN’S GAME?

SPORTSWEAR, SORT OF HUGO BOSS is serious about seeing Deutschland’s footballers dressed and pressed. The players, all part of the German Football Association, were impeccably turned out for the official World Cup engagements in midnight blue BOSS suits paired with shirts of fine denim and knit ties. According to the brand, the latter elements in the ensemble were incor-

porated to lend a “modern edge” to the overall look. The management team, including coach Joachim Löw, appeared in custommade suits by BOSS MADE TO MEASURE. And for their trip to and from Brazil? Comfortable (yet put-together) leisurewear outfits of grey knitted Merino wool cardigans and dark-blue trousers, also by HUGO BOSS.

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THE DEVIL’S IN THE DETAILS Accessories can make or break your look. Here are two notables that were brought into the BOSS look for the German team’s World Cup official appearances.

The BOSS pocket square in fine denim

Belt and shoes in stitched leather

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| TRAVEL |

Kyle Whitehill, Vodafone Qatar CEO

Help me, help you Vodafone Qatar’s Amazon adventure for young voluntourists

By Pamella de Leon

f you’re going to do something for the first time, why not do something that benefits society in addition to being adventurous… yes, like voluntourism? In line with Vodafone’s global “Firsts” initiative, a project encouraging people to achieve an experience for the first time with the help of mobile tech, Vodafone Qatar is launching “My First Amazon Adventure” for six young Qataris to go on a 21-day excursion through Brazil’s Amazon. Mentored by philanthropist and avid trekker Sheikh Mohammed Bin Abdullah Al Thani, the adventurers aged between 17-24 years old will be helping to build a school for the local community. How will mobile tech be part of the experience? Vodafone and OM Signal Technology will equip the first-timers with “compression skins that enclose embedded biometric devices powered by Machine 2 Machine (M2M) technologies” to gather data including heart rate to help activate blood circulation and allow muscles quicker recovery. Besides their wearable wrist-band tech, Vodafone will equip the school with an internet connection, smart boards, and tablets. “My First Amazon Adventure” is going to be digital- you can keep tabs on the journey in real-time via Vodafone Qatar’s social media platforms.

| DESIGN |

JEDDAH DECOFAIR 2014 Decofair 2014, Saudi Arabia’s sixth international furniture and interior design exhibition, will be back from the 10th-13th of November 2014 at the Jeddah Centre for Forums & Events. KSA’s furniture imports reportedly total US$2.2 billion, making Decofair a fairly relevant event. Organized by Reed Sunaidi Exhibitors, show participants include notable brands such as BoConcept, Roche Bobois, Fendi home, Kenzo Maison, Roberto Cavalli, Casa D’Argento, KA International, Dogtas, Hans Grohe, Roca and Scavolini, along with

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major local distributors Al Bonian Group, Al Mutlag and Al Sorayai. With the Kingdom’s government recently launching ESKAN, a program for citizens to receive housing aid in response to the shortage of affordable alternatives, it might be a good time to explore real estate ventures too. For the first time, this year Decofair will be staged in tandem with the Saudi Real Estate & Investment Show, giving event-goers some insight as to KSA’s real estate investment opportunities. www.decofair.com

Decofair 2013

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| TRAPPINGS | LEGO BUSINESS CARD IMAGE SOURCE IMGUR.COM

Hotel employee posts image of Lego employee business card

WORK ON YOUR PENMANSHIP PARKER IS ON POINT

ooking for a fine writing instrument with some personality? Parker might have just what you’ve been looking for since the brand is celebrating 125 years of craftsmanship with their Historical Colors 125th Anniversary Special Editions. The range is a homage to the brand in bold hues and sleek design, available in Ultra Premium Penman Blue or Mandarin Yellow and IM Premium Blue-Black or Big Red. The collection is suitable for both corporate and personal gifting… or as a reward to yourself for signing off on that big acquisition that you’ve been pining after. It’s worth mentioning that Parker was awarded the Royal Warrant by Queen Elizabeth II, and that the brand is present in over 100 countries globally, including the GCC. Now you’ve finally got an excuse to work on your handwriting.

| business unusual |

“EVERYTHING IS AWESOME!”

Lego’s customized mini figurines as exec business cards

ego once again proves how awesome their corporate culture really is by arming executives with business cards made of out… Lego (of course). The miniature figures started when a designer made a pint-sized Lego version of CEO Jørgen Vig Knudstorp. What are the criteria to qualify for a Lego minime? According to Michael McNally, Lego brand relations senior director, it’s “primarily leveraged for leadership and individuals who have strong external focus in their work.” The department responsible for producing the minifigures when the idea first came about also qualify for the unorthodox business cards. Lego execs have their regular business card info (contact details appear on the back), along with customized mini glasses and hairstyles to represent them faithfully. The rest of us will have to settle for the Lego business card holder… and yes, we too think it’s a poor substitute.

Promotional film outlining the history of the Parker Pen company on its 125th anniversary in 2013

PENNING YOUR MAGNUM OPUS Duofold Senior 125th Anniversary Limited Edition If you’re planning on executing the work of a lifetime, you might want to consider treating yourself to the Duofold Senior 125th Anniversary Limited Edition. This ergonomically-designed writing instrument boasts an 18K solid gold nib and is cast in silver paired with black resin for ease of use. The design is a modern interpretation on the brand’s hallmark ‘ciselé’ pattern.

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ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

The Esquire Guy’s

guide to asking for advice By Ross McCammon

irst of all, we have to come up with a better word for whatever this is. Brain-picking sounds like a medieval surgeon’s treatment for foot cramps. It sounds misguided and painful. Probably lethal. And it’s a strangely off-putting term for what is almost always a delightful experience, both for the picker and the pickee. (Which are also off-putting terms, and which I won’t be using again.) The first rule of brain-picking: It shouldn’t require your mentor to actually think. You should ask only for something that is pre-made and ready to be handed over: basic knowledge. What the service does not include is recommendations. Brain-picking is meant to be a passive exercise on the expert’s part. If you’re asking for recommendations, then you are forcing your subject to work. Offering a recommendation involves analysis and decision-making. Decisions are hard. Decisions are work. Don’t ask your subject if you should

THE FIRST RULE OF BRAIN-PICKING: IT SHOULDN’T REQUIRE YOUR MENTOR TO ACTUALLY THINK. YOU SHOULD ASK ONLY FOR SOMETHING THAT IS PRE-MADE AND READY TO BE HANDED OVER: BASIC KNOWLEDGE.

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switch careers. Ask about the career you’re considering switching to. Don’t ask your subject if you should go work for so-and-so. Ask your subject what kind of person so-and-so is to work for. Don’t ask your subject if you may go to the restroom. Ask your subject if he or she knows where the restrooms are. (You really should’ve taken care of this before the meeting.) Ask questions that are easy to answer but that you just don’t know the answer to. Keep it short. Request about 15 minutes of their time. You’ll probably get 30, but ask for 15. Says Alex Iskold, founder and CEO of GetGlue, a social network for TV, movie and sports fans: “If someone asks me for

KEY TECHNICAL MATTERS > Never ask for more than 15 minutes of a person’s time. You’ll probably end up with 30, but never ask for more than 15. > When making a brain-picking request, frame it in terms of your subject: “I’d like to ask you about your career.” Not “I’d like to ask you about my career.” > Be as accommodating as possible: “I’m available next week.” Not “I’m available Thursday.” And definitely not “I can squeeze you in from 8 to 8:15.”

> Be courteous: “I would be grateful for your time.” Not “You gotta help me out here.” > And certainly not: “YOU GOTTA HELP ME OUT HERE!” > There’s no need to praise the person. Your request to pick their brain is praise enough. > Never ask a mentor to help you make a decision. Consultants make decisions. Which is why consultants get paid. Mentors give feedback. > Be grateful but not obsequious.

You’re not beneath the other person. You’re just a little less experienced in a certain category of business. > Remember that they’re getting something out of it, too: flattery. And possibly a free coffee or something. But mainly flattery. > Remember to listen more than you talk. And never interrupt. But don’t just sit there. Really. Don’t just sit there. ... [PAUSE] For the love of God, ask a question!

something that’s in my area of expertise, and if it’s someone I know or someone referred to me by someone I know, and it’s 10, 15 minutes, half an hour, I think that’s reasonable and totally fine, and if I have the time, I’m happy to be helpful. It’s all about time.” Before making the request, ask yourself why this person would want to help you. The answers should be: because it will be easy, because you want to do what they do at some point in your career, because it allows them to do a generous thing and because whatever mutual connection you share is an important one (you went to the same school, you work in the same building, you were at the same conference, you both seem to enjoy doing inventory). The point is to give them a reason to help you. “I tend to prioritize people in college who are trying to become their own entrepreneurs. It’s a personal preference; these are people that inspire me,” says Chantel Waterbury, founder and CEO of Chloe + Isabel, a New York-based jewelry company. “And if someone needs branding advice or design or product-development advice, I always take those calls, because I know it’s an area in which I can add a lot of value.”

WHAT BRAIN-PICKING MEANS TO THE MENTOR

The main force at work with brain-picking could be described as the ecstasy of consultancy- an unacknowledged but crucial factor in business. The one being consulted gets to yammer on in relatively simple terms about something involving their area of expertise. Which is easy and fun. (There is nothing more satisfying than being the smartest person in the room, especially if the room has only two people.) Says Waterbury: “There are people I reach out to who are extremely seasoned and working in their industry for 40, 50 years, and I feel sometimes like it’s a one-way street, and I apologize, and they’ve said to me, ‘I do this because it invigorates me.’ I have to remind myself that they are in fact getting something from it, and I’m not just taking.” ASK QUESTIONS THAT ARE EASY TO ANSWER BUT THAT YOU JUST DON’T KNOW THE ANSWER TO. KEEP IT SHORT. See this article in its entirety at Entrepreneur.com

HOW TO ASK QUESTIONS Questions should begin with phrases like: Could you tell me about... How did you... When you were in my position... Questions should not begin with phrases like: Can I have... Can you help me... Will you excuse me while I tweet that I’m hanging out with you... Questions should never, under any circumstances, contain the following: If you’ll allow me to tell you the story of my career. It all started ... What, you think you’re better than me or something? Now for the lightning round... Can I just have a damn job, dude?

The ecstasy of consultancy is really just a “social reward,” as the psychologists put it. Social rewards are powerful things. “We know that when you share your experience with someone else, then you activate the default network in the brain, which is associated with a sense of social connection, empathy and positive reward,” says Anthony I. Jack, assistant professor of cognitive science, philosophy and psychology at Case Western Reserve University. When your brain is being picked, he adds, “this network comes up, and the analytic/critical thinking network gets suppressed, and you’re engaged.”

Brain-picking is a form of “inter-subjectivity,” the shared exploration by two people of each other’s experiential world. You’re getting social capital, but you’re sharing social capital, too. The reason this kind of reward is so powerful -and the reason why brain-picking has become an important part of businessis that you’re allowing another person to personally invest in your success, if only temporarily. This is an honor. And it’s uniquely flattering. Requests for consultancy could be considered the most important measure of success. That’s a powerful gift you’re giving someone. Brainpicking is an even trade.

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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.

Managing the Matrix The Secret to Surviving and Thriving in Your Organization Dawn Metcalfe Navigating the labyrinth of today’s corporate and organizational structures can be an endeavour rife with traps, snares and pitfalls, unless your employees have the tools (emotional intelligence being key) to recognize how to manage their role relative to other roles in an organization. (Check out the EQ feature in our Culture section.) It is this key fact that author Dawn Metcalfe attempts to impart in this book using two fictional characters in an organization that could be any corporation in the world. While

Focus The Hidden Driver of Excellence Daniel Goleman We live in a world where we are inundated with all sorts of minute by minute distractions, not the least of which are our instantly reachable electronics. With this many diversions, one could be forgiven for saying that our attention spans are seriously on the wane. In his latest book, Goleman sets out to dissect what focus and attention actually are on a neurological level (it’s very complex), and how our brains are being rewired because we are accessing minute amounts

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of information constantly- be it from social media or other channels. Goleman does an exceptional job of using anecdotal evidence and real-life stories showing the effect that this is having on the most basic of daily tasks: Everything from a complete lack of empathy to a professor’s inability to read more than a couple of pages at a time. This is absolutely the book to read when you want to understand the costs of a lack of focus both in dollars and human capital.

the book itself is interesting, the interspersing of conversations between the characters does not add to the information -and at times distracts from it- as their conversation veers and winds. Metcalfe mentions several tests for emotional intelligence, most notably the Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT). The concept Metcalfe tries to get across is a good onethe best feature of Managing the Matrix is that at the end of each chapter, there is a Key Takeaways section which encapsulates the relevant information.

Gender Intelligence Breakthrough Strategies for Increasing Diversity and Improving Your Bottom Line Barbara Annis & Keith Merron If there is a single problem to be identified in breaking the glass ceiling for women, people often identify gender imbalances at the top and cite that women don’t take higher level jobs or leave jobs to have a better work-life balance. The authors of this particular book are looking to upend that belief as they feel that no amount of gender-based hiring or promotion programs can rectify the situation. It is their opinion that gender balance can only be achieved when each gender is allowed to use their naturally

inclined intelligence instead of what is considered an “acceptable” application of skills. Once Gender Intelligence gains traction, it will certainly cause a buzz, and not just in business circles. This writer predicts that the theories put forth are going to cause a firestorm of controversy from both feminists and oldschool entrepreneurs. The authors’ views are most certainly provocative, and the ideas not presented in a way that leaves much room for argument. This is a book to watch for the great boardroom debate.

Pitch Perfect How to Say it Right the First Time, Every Time Bill McGowan and Alisa Bowman There are few skills in life more critical to success than communication know-how. Bill McGowan, former news correspondent and current media coach, has laid out seven critical principles of communication to help you succeed and assist you in navigating communication pitfalls that can damage your career prospects, sabotage relationships, and stall your life trajectory. This book is easily one of the best communication books on the market- the layout is clear,

AUTHORS ARE ‘TREPS, TOO!

the principles are clearly defined, and the application in several aspects of life are well thought-out. These principles, for all intents and purposes, are made up of years of experience communicating and succeeding via multiple mediums. While all of the tenets are important, the Scorsese Principle is perhaps the most relevant in this reviewer’s opinion; it discusses keeping your audience engaged. Use this rule of thumb as a starting point, and all of the others should fall into a neat line.

Dan Brown

Stephen King

THERE’S BIG BUCKS TO BE MADE IN PUBLISHING

n 2013, according to numerous publishing industry financial sources, authors that grossest the highest were those that appealed to the widest audience. A few well-known writers that made some serious cash last year? Horror-fiction household name Stephen King, followed by Inferno’s Dan Brown, and romance author Nora Roberts. Erotic-romance author E.L. James of 50 Shades of Grey fame unfortunately reportedly raked in the most, beating out even James Patterson.

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NOWHERE TO GO

BUT UP

HIRING PRACTICES IN THE MIDDLE EAST RECRUITMENT PROCESS EFFICACY AND YES, THERE IS ROOM FOR IMPROVEMENT By Suhail Al-Masri

here can be no substitute for sophisticated and thorough recruitment processes and methodologies as the cost of getting the hiring process wrong can be very steep, not only in terms of lost recruitment expenses but also in terms of training and on-boarding expenses. A recruitment process that is not optimized can lead to reduced productivity, reduced employee morale and even potentially lasting negative impact on the brand, as well as suppliers and clients. In light of the above, new joiner induction programs are absolutely crucial for any position. These programs can last anywhere from one week to one year depending on the nature of the job. Existing employees should also be given the opportunity to be part of these training programs and impart knowledge from experience whenever possible. It has been proven that relevant and regular internal (both structured and informal sessions) as well as external training sessions always boost employee performance and morale. Another upcoming trend is creating talent pools within the organization. For example, creating a talent pool of high potential employees (through talent assessment centers) helps the company during succession planning. These talent pools also have to be coached, mentored and trained on an ongoing basis.

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According to Bayt.com’s March 2011 The Importance and Adoption of New Joiner Induction Plans in the Middle East Workplace poll, only 45.5% of regional professional respondents were assigned a mentor or trainer to help them settle in their new job. On the other hand, 57.6% of participants said their company supported effective induction plans for new joiners, 25.4% said it did not and 17% said it depended on the position. The respondents were then asked if an effective induction plan worked more for the benefit of employers or new joiners. Nearly three quarters (73.1%) said both, 12.6% indicated more the benefit of the employer and 14.3% said more to the benefit of new joiners.

When asked if an effective induction plan would increase a new joiner’s sense of belonging in the long run, more than half (53%) of respondents said ‘absolutely’, 24.6% said ‘yes to a certain extent’ and 3.8% said ‘not really’. In terms of perception, the Bayt.com Hiring Practices in the Middle East and North Africa poll executed in January 2012 indicated that almost 61% of employers consider the hiring practices in their company to be sophisticated, with 58.1% claiming that their organization provides training on interview skills for those involved in the hiring process. Despite the empirical evidence, we would say there is no generic ‘best’ selection system- a “one-size fits all” so-

lution. Many a time, it depends on the company itself. Some companies prefer a candidate who joins and gets the job done, instead of worrying about whether he is an introvert or an extrovert, with a GPA of 2.0 or 4.0. Perhaps theyâ&#x20AC;&#x2122;d give an assignment to the candidate or run a test, and performance on that test would be their key (sometimes even sole) selection criteria. Meanwhile, other companies might have a company culture that they engrave in the minds of every employee. For them, identifying a candidate who is a cultural fit would be as critical as the job-knowledge part. Their process could include something similar to our process at Bayt.com where we have telephonic screening (HR), physical interviews (Direct Manager), Assessment Centers (panel selection) and/or further tests or interviews depending on the position the candidate is being interviewed for. Based on the results from the Bayt.com Hiring Practices in the Middle East and North Africa poll, most prospective employees are likely to be interviewed by one or two people (27.3% and 28.8%, respectively), though it is not uncommon for them to meet with more existing employees in their potential new company; 22.7% of respondents say that their interviewees will meet three people, while 18.2% claim that candidates will be interviewed by more than four.

However, no matter how many people the candidate meets, the vast majority of employers (70%) say that post-interview follow-ups are essential. However, and regardless of the type of the selection system in place, the hiring process should have a clear, defined and disciplined structure (complete with skills and competencies assessments, behavioral assessments, ratings, etc.) where every person involved should have a clear idea of which competency is being identified and assessed at every step.

THE HIRING PROCESS SHOULD HAVE A CLEAR, DEFINED AND DISCIPLINED STRUCTURE Another way to streamline the selection system would be to train every person involved in the decision making process on the corporate recruitment process and have disciplined systems in-house to ensure this. Moreover, it always helps to revisit the companyâ&#x20AC;&#x2122;s recruitment process at least once a year to see if changes, refinements, and updates need to be made. The good news is that internet penetration today is higher than ever before and makes it much more possible for organizations of all budgets and sizes to benefit from the tremendous reach and choice their vast professional communities afford. Accessing large troves of candidate databases is easier now than ever, and companies can worry less about sourcing and more about getting their process right.

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 companyâ&#x20AC;&#x2122;s mission to empower people with the tools and knowledge to build their lifestyles of choice. juLY 2014

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TECH

MENA is still searching for the ultimate payment solution Telr’s e-commerce equation By Kareem Chehayeb

he Middle East’s e-commerce market is growing at a rapid rate, and we can safely say that its development will be a massive benefit to ‘treps across the region. That said, we’re all still struggling to find the ultimate payment solution that will allow Elias Ghanem, founder of Telr.com e-commerce to take that giant leap forward. According to Elias Ghanem, his company Telr can provide just that. His experience 50

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with e-commerce and passion for self-starting were the two critical components that inspired him to start Telr. “I realized how exciting the entrepreneurship world is, and decided to jump into the deep sea and become an entrepreneur myself,” said Ghanem. Ghanem has the experience to pull this off: He’s worked in the sphere for almost two decades as MD of PayPal MENA, MD of PayPal South East Asia and India, in addition to Visa Inc. in the U.S. and Singapore, where he held a few different senior positions. So what is Telr? Ghanem explains that it aims to provide a “com-

prehensive, scalable and flexible payment solution” for e-merchants. This applies for both domestic and international commerce. According to Telr’s website, its services focus on solving three challenges that it considers to be the most significant in the e-commerce industry. The first is transaction processing, where Telr hopes to provide a solid multicurrency and multi-lingual “payment gateway”. Second is what Telr calls “unified logistics,” which improves the efficacy and efficiency of deliveries. The third challenge is cash management, where Telr hopes to sustain a service that enhances cash flow.

While Ghanem did not make any specific remarks when asked about PayPal’s services and emergence in the Middle East, he did claim that he believes that Telr is the only payment service that solves the three major challenges explained above. All in all, it looks like a service that SMEs will enjoy. Telr’s founder isn’t just thinking MENA, though; while he is launching Telr’s services in the UAE before expanding regionally, Ghanem is hoping that Telr will be active in African and Southeast Asian markets. In fact, one of their two hubs is in Singapore, which will be Telr’s “legal, financial and operational support [base] needed to expand fast across all South East Asia and especially in Indonesia.” The other hub is expectedly in Dubai, given that the UAE has large e-commerce industry and is a hotbed for corporate advancement and logistics. What’s his take on the current state of e-commerce in the Middle East? Unlike many others involved with e-commerce, Ghanem sees the Middle East’s market beyond its infancy phase and at a stage of what he describes as “fast growth”. That said, his view on cash on delivery (COD) as

a payment method isn’t very different, believing that it’s a massive obstacle to e-commerce’s market growth in the region. What Ghanem had to say about COD made it seem borderline criminal: “The sooner all players come together and ban COD, the faster e-commerce will grow.” Therefore, it is no surprise to us that Ghanem and the folks at Telr, like many other companies who are trying to provide the ultimate payment solution for e-commerce, are working “days and nights” to find the right alternative to COD. Whether the supposed blight of e-commerce is eliminated or not, it will be interesting to see how Telr’s services do in the region. Considering Ghanem’s long-term plans, it’s also worth contemplating whether neighboring arenas -be they the emerging markets of Africa or the rapidly growing markets of Southeast Asia- will strengthen cross-border e-commerce in the Middle East.

“THE SOONER ALL PLAYERS COME TOGETHER AND BAN COD, THE FASTER E-COMMERCE WILL GROW.”

THE RACE TO ANNIHILATE COD MENA E-COMMERCE OVERVIEW PayPal MENA www.paypal-mena.com

PayPal and its popular digital wallet is making headway across the Middle East, and the folks at PayPal MENA have been keeping an eye out on growing e-commerce markets, particular in the UAE, Qatar, and Saudi Arabia. With PayPal being popular internationally, and PayPal MENA palling up with Qatar National Bank and Aramex, we can safely assume that consumers in the GCC will be setting up their digital wallets very soon. Watch for the continued rise of m-commerce in the Middle East- PayPal MENA is on the ball there as well. All in all, the online payment platform’s successful digital wallet looks like it could be a huge hit in the Middle East, but only for markets with high credit and debit card ownership and usage.

PayFort www.payfort.com

PayFort is optimistic that their payment solution will sweep the Middle East, given the fact they take into consideration the lack of credit card ownership in various markets, notably high-populace Egypt. Options like PAYatHOME and PAYatSTORE hope to allow merchants to expand its consumerbase by selling online without a credit card. PayFort hopes to make this happen using alternatives, notably vouchers that are sent via e-mail or SMS. The online payment platform’s focus on the region means that their payment solutions will benefit different markets of the region, whether we’re talking about Cairo or Dubai. Credit card ownership regionally isn’t high as yet, so we predict that PayFort’s services will also be successful outside the GCC.

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DO THINGS YOU CAN SUSTAIN By James Clear

n 1996, Southwest Airlines was faced with an interesting problem. During the previous decade, the airline company had methodically expanded from being a small regional carrier to one with a more national presence. And now, more than 100 cities were calling for Southwest to expand service to their location. At a time when many airline companies were losing money or going bankrupt, Southwest was overflowing with opportunity. So what did they do? Southwest turned down over 95% of the offers and began serving just four new locations in 1996. They left significant growth on the table. Why would a business turn down so much opportunity? And more important, what can we learn from this story and put to use in our own lives? WE TEND TO FOCUS ONLY ON THE LOWER BOUND: THE MINIMUM THRESHOLD WE WANT TO HIT. AND THE IMPLICIT ASSUMPTION IS, “HEY, IF YOU CAN DO MORE THAN THE MINIMUM, GO FOR IT.” BUT WHAT WOULD IT LOOK LIKE IF WE ADDED AN UPPER BOUND TO OUR GOALS AND BEHAVIORS?

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WHAT IS YOUR UPPER BOUND?

Starting in the 1970s, Southwest was the only airline company that made a profit for nearly 30 consecutive years. In his book Great by Choice, author Jim Collins claims that one of the secrets to Southwest’s success was the willingness of company leaders to set an upper bound limit for growth. Sure, Southwest executives wanted to grow the business each year. But they intentionally avoided growing too much. The company leaders chose a pace that they could sustain, so the business could grow while maintaining the culture and profitability. They set an upper bound limit for their growth. This is an approach that can be applied to nearly any goal, business or otherwise. Most people, however, tend to do the opposite and focus only on the lower bound. > An individual might say, “I want to lose at least five pounds this month.” > An entrepreneur might say, “I want to make at least 10 sales calls today.” > An artist might say, “I want to write at least 500 words today.” > A basketball player might say, “I want to make at least 50 free throws today.”

We tend to focus only on the lower bound: the minimum threshold we want to hit. And the implicit assumption is, “Hey, if you can do more than the minimum, go for it.” But what would it look like if we added an upper bound to our goals and behaviors? > “I want to lose at least five pounds this month, but not more than 10.” > “I want to make at least 10 sales calls today, but not more than 20.” > “I want to write at least 500 words today, but not more than 1,500.” > “I want to make at least 50 free throws today, but not more than 100.”

BY SETTING AN INCREDIBLY EASY UPPER LIMIT, YOU MAKE THE PROCESS OF GETTING STARTED AND SUSTAINING YOUR BEHAVIOR MUCH SIMPLER. ONCE YOU ESTABLISH THE ROUTINE OF DOING YOUR BEHAVIOR OVER AND OVER AGAIN, YOU CAN RAISE THE LIMIT AS NEEDED. A SAFETY MARGIN FOR GROWTH

In many areas of life, there is a magical zone of long-term growth: Pushing enough to make progress, but not so much that it is unsustainable. Take, for example, weightlifting. Over the past year, I have slowly added five pounds to my squat every few weeks. A year ago, I started with a weight that was too light: 200 lbs. for five sets of five reps. Last week, I did 300 lbs. for five sets of five reps. I never followed a magical program. I simply did the work and added five pounds every two weeks or so. Sure, the lower limit was important. I had to keep adding weight in order to get stronger. But the upper limit was just as critical. I had to grow slowly and methodically if I wanted to prevent inflammation and injury. There were plenty of days when I could have added 10 pounds. Maybe even 15 pounds. But if I aggressively pursued growth I would have quickly hit a plateau (or worse, caused an injury). Instead, I chose to stay within a safety margin of growth and avoided going too fast. I wanted every set to feel easy.

The power of setting an upper limit is that it becomes easier for you to sustain your progress. And the power of sustaining your progress is that you end up blowing away everyone who chased success as quickly as possible. Put another way: Average speed wins. DO THINGS YOU CAN SUSTAIN

There is a very simple way to put this idea into practice: Let upper bound limits drive your behaviors in the beginning and then slowly increase your output. Say you want to start working out. Most people would focus on the lower limit and say, “I have to start exercising for at least 45 minutes on Monday, Wednesday, and Friday.” Instead, you could turn the problem upside down and say, “I am not allowed to exercise for more than five minutes on Monday, Wednesday, and Friday. By setting an incredibly easy upper limit, you make the process of getting started and sustaining your be-

havior much simpler. Once you establish the routine of doing your behavior over and over again, you can raise the limit as needed. It is better to make small progress every day than to do as much as humanly possible in one day. Do things you can sustain. 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 juLY 2014

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1. YOU’RE ALREADY AIMING HIGH? AIM EVEN HIGHER. “You want to own a Chanel bag from the classic collection? You should want to own Chanel.” She knows it’s very unlikely that I -or she, for that matter- will ever be the owner of a 105-year-old global conglomerate like Chanel, but her point is that setting easily achievable goals is not the way to go. Great ambition might not be for everyone, but from the moment you decide to aim for a certain objective, you will take every single possible step towards it. Also, aiming at a lower target could possibly prevent you from giving it your best shot- or worse, you could be focusing your hard work on achieving a goal that doesn’t require 100% of your effort.

Five business rules I’ve learned from my little sister By Youmna Chagoury

y sister has always had delusions of grandeur: she wants to own a 15th century castle in Europe (anywhere on the continent, it just needs to be a castle); she wants to be so busy at work that she’ll need a personal assistant (or several); she wants to buy her four sisters each a private island; she wants to be recognized for her business achievements, and sometimes she even dreams of a Nobel Prize. She set these highly ambitious goals when she was 17 years-old, and three years later they haven’t changed. Basically she just now knows what she needs to do to make all these things happen. Here are five rules that I’ve learned from her arduous, ambitious young self. 54

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2. DON’T INVEST IN SOMETHING YOU DON’T NEED IF YOU DON’T HAVE THREE TIMES ITS COST. “So you’ve paid your rent and all of your bills, and now you’re left with $150 in your bank account. You can only spend $50 on shopping this month.” Okay, she learned this one from my father, but still. This one applies to both your personal accounts and your business endeavors. There’s this new, expensive program that helps manage your staff’s daily tasks, but will leave your company penniless this year? Unless you can’t run your business without it, you’re not allowed to buy it, no matter how valuable or effective the software. You never, ever know what might come up and when you might need that extra $150 -or $150,000- for more important matters. Better safe than sorry… and definitely better than being broke.

UNLESS YOU CAN’T RUN YOUR BUSINESS WITHOUT IT, YOU’RE NOT ALLOWED TO BUY IT, NO MATTER HOW VALUABLE OR EFFECTIVE THE SOFTWARE.

3. SCRATCH THE PREVIOUS RULE. GO ALL IN! “What if you can’t buy that laptop next month? And the one after? And the one after? It’s now or never, dude.” Being an entrepreneur and managing a successful company is all about the risks you take, and how far you’re willing to go without a safety net. Sometimes you’ll find that the best (and only) way to make more money or reach a broader audience or increase your productivity is to spend your money down to the last cent. You’re not supposed to do that every time you manage to save a few bucks, but when the perfect opportunity –or brand new, amazing laptop- knocks, you can’t take forever to think it through. Seize the chance and carpe that business diem. 4. GIVE IT YOUR ALL BUT REMEMBER IT’S NOT THE ONLY THING IN YOUR LIFE. “I know I need to work really hard to have my own company and my private jet, but there’s no way that work becomes my whole life.” My sister believes she will be a hard-working girl. Actually she already is, in her own wayshe’ll do just about anything to reach her goals. She’s on a diet? She won’t reject a greasy

Chili’s invitation, she’ll just plan it in her regimen as a weekly cheat meal. She’s following a workout plan? She will spend a whole day couch potato-ing and then get back on track the next day. The brief pauses you take and the invitations you accept are not setting you back; they’re a way for your body and your mind to recharge. That drink with the friends or that dinner with the family that you haven’t seen in weeks will not stop the earth –or your company- from spinning. Hard work, dedication, and maybe a little bit of luck are the only things that will get you there, but you can’t forget about all the other things that could make you happy. Under no circumstance should you get sidetracked from living your own life- work-life balance is not a myth. 5. BUSINESS IS NOT ALL ABOUT THE MONEY “I barely made any money from that cheese and wine kiosk at Christmas, but everyone knew who Aïda was. Wait and see how much money I’m going to make next year.” After buying the best cheeses and giving away countless platters and glasses of wine to people who couldn’t af-

ford it or as an on-the-house gesture to clients who had placed several orders, she was left with next to nothing. It didn’t bother her in the least: Not only was she having fun, she was learning the ropes of investment (a lot of her kiosk money went to renting a heater for her customers and she actually gained new ones because of it). She also got a handle of the rules of supply and demand by running out of cheese the first day and then over-ordering the next. She decided that all of her kiosk-related acquaintances

were PR opportunities, and rightfully so. Invest in your brand PR, be it personal or corporate, and you will reap the fruits of your moneyless labor. A year after –or two, or five-, they’re ripe and delicious.

HARD WORK, DEDICATION, AND MAYBE A LITTLE BIT OF LUCK ARE THE ONLY THINGS THAT WILL GET YOU THERE, BUT YOU CAN’T FORGET ABOUT ALL THE OTHER THINGS THAT COULD MAKE YOU HAPPY.

TMI? AppMahal shows you the apps your pals are using

re you curious to know what mobile app your friend is using to edit their photos? No need to bug them, here’s a new social network to help you out: AppMahal. Developed by an Arab entrepreneur specifically for Arab-speaking users, AppMahal is a social mobile application that allows users to see which apps their friends and other users in their community have downloaded. By linking the app to their Facebook account, users can discover new and recommended apps by friends and people they know without the fuss of skimming and trial and error. Currently available for Android, it will be interesting to see how AppMahal plans to gather a user-base- look for the full interview on our website. juLY 2014

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Feelings, nothing more than feelings You need to work on your emotional intelligence By Pamella de Leon

here’s a familiar childhood warning of counting to 10 before speaking when you’re angry. From a young age, we’re encouraged to have emotional managing skills to be the better person, if not, to at least have the upper hand in facing conflict. Is ‘managing emotional skills’ really possible? Research by psychology professors John Mayer of University of New Hampshire and Peter Salovey of Yale demonstrates how thinking and emotions together can convey information to push forward your potential. They also maintain its influence in everything from decision-making to your entrepreneurial streak, and yes, it’s present in your workplace too.

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Staff and prospective employees are being measured not just by skills, experience and intellectual capabilities, but also how we handle each other and ourselves. It’s important to understand how to develop these capabilities for the success of your career- after all, it’s being smart with your feelings. It’s not about ‘being nice’ or ‘freeing your emotions’, it’s about how to manage your feelings for effective expression. According to Inc., research says EQ can be learned and increased in adulthood, increase work performance in any industry or position, and improve organizational performance. So how is EQ used on a daily basis, and how can we do better? Dynamic Learning hosted

a workshop with Six Seconds to educate people on emotional intelligence and discuss Six Seconds’ State of the Heart report based on the Six Seconds Emotional Intelligence Assessment (SEI database) with an algorithm consisting of 15 normative scales. Let the science guide you. RUNNING WITH THE FAST CROWD The State of the Heart report, surveying over 75,000 people from more than 75 countries between 2011 and 2013, showed that worldwide emotional intelligence is decreasing with increasing empathy at -2.1%, navigating emotions at -1.4%, exercising optimism at -1.4%, and the Middle East having a score of 99.5 out of 150- slightly below than global average. Among other factors, these statistics reflect the current lifestyle in the Middle East, fuelled by people’s chase for a fast-paced life and

STAFF AND PROSPECTIVE EMPLOYEES ARE BEING MEASURED NOT JUST BY SKILLS, EXPERIENCE AND INTELLECTUAL CAPABILITIES, BUT ALSO HOW WE HANDLE EACH OTHER AND OURSELVES.

instant gratification, whether it’s that rush from a Facebook like or the allure of getting things done, or even catching a cab ride via mobile app. People don’t seem to have time to ponder and evaluate their stance and feelings about issues. Six Seconds’ Model of Emotional Intelligence has eight competencies: Enhance Emotional Literacy, Recognize Patterns, Apply Consequential Thinking, Navigate Emotions, Engage Intrinsic Motivation, Exercise Optimism, Increase Empathy, and Pursue Noble Goal. In the Middle East, the highest scoring are Enhance Emotional Literacy, Apply Consequential Thinking, and Exercise Optimism. The weakest competencies? Recognize Patterns, Navigate Emotions, and Engage Intrinsic Motivation. During the workshop staged in Dubai, the discussion led to how those findings echo the traits of residents in the region; this being committed, result-oriented, and focused on the ‘now’. Though this is satisfactory, it’s also essential that people have time to evaluate their emotions

and be proactive about their actions, instead of mere reactive thinking based on immediate events. The absence of that mindset develops the risks of being focused on just short-term intentions, and perhaps failing to direct people to collaborate together toward common goals. This is why EQ is important to anyone, especially to those in a leadership role. Leaders are focused on human relationships, and if you really think about it, emotions. A leader’s greatness is often a reflection on how well he deals with challenging situations and moments of self-doubt. Leaders can instill EIM by letting employees value the benefits of success outside of work. There’s research behind successful CEO’s and EQ too: Daniel Coleman’s Emotional Intelligence: Why It Can Matter More Than IQ analyzed data from “close to 500 competence models” of global companies to narrow-down which personal capabilities stimulated striking performance. The result? EQ provides “80-90% of the competencies” that differentiate industry leaders.

IN THE MIDDLE EAST, THE HIGHEST SCORING ARE ENHANCE EMOTIONAL LITERACY, APPLY CONSEQUENTIAL THINKING AND EXERCISE OPTIMISM. THE WEAKEST COMPETENCIES? RECOGNIZE PATTERNS, NAVIGATE EMOTIONS AND ENGAGE INTRINSIC MOTIVATION.

USE IT OR LOSE IT The report also introduced the concept of brain ‘apps’- based on research, these “capabilities” allow people to excel in work/school/life, and the eight competencies of emotional intelligence are linked to these ‘apps’ as elements to “drive each talent.” Likened to phone

apps, everyone has these capabilities, but only some are used often- the same goes with brain ‘apps’. In the Middle East population sample, the strongest talents were adaptability, reflection and problem-solving, while the lowest were collaboration, vision and entrepreneurship. The report also suggests that in stress-inducing moments, there’s pressure to conform. If there’s a different opinion, there’s judgment, since the status quo have influenced us to think that anything different is wrong. But if dissimilarity is met well, it can lead to learning. In a world that’s continually globalizing, and for innovation to move forward, we need various perspectives. >>>

Abu Dhabi talks global energy security

ADIPEC 2014

The 17th edition of the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) kicks off on November 10th and goes on until November 13th, 2014, under the patronage of H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE. Sponsored by the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi Chamber, this year’s focus is global energy security and the Middle East’s pivotal role. A recent report by British Petroleum stated that global energy consumption is projected to increase by 41% between 2012 and 2035- it makes perfect sense that 60,000 attendees comprising of policymakers, industry leaders, academics, and technical experts will be visiting Abu Dhabi this fall to attend ADIPEC. www.adipec.com juLY 2014

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How is this connected to EQ in the workplace? Previously, people were comforted by the knowledge that their job is secure as long as they work decently, but as we all know, after the economic crash, no one’s assured of a job and staff are all too often considered dispensable. As previously pointed out, life in the Middle East (or at least in Dubai), is fast-paced and resultsoriented; compound that with the sense that your job (along with your visa) can be taken away at any time, creating anxiety and even fear. Expat employees, already consumed with a fast-paced life

THE GENDER GAP IN PROBLEM-SOLVING

The biggest gap is in problem solving and focus with men rating higher in both, and reflection with female rating higher. Women’s highest capabilities are reflection, adaptability and connection, and

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fraught with short-term goals and little plans for the future (you know you’re in denial and haven’t thought about it when you still talk of ‘going back home’ even though you’ve been an expat for more than 15 years), become hesitant of rocking the boat. Instead of correcting workplace mistakes or pitching new ideas, they cave, thus inhibiting a person’s EQ. It simultaneously displays an employer’s low EQ, as the mindset to innovate and think entrepreneurial -quite encouraged and talked a lot in this region- is hindered by people’s fear of losing their secure jobs. A question that stirred in the workshop was, as expats, are we born this way, or have our brains rewired after coming here, because of the workplace situations? Or does it go back deeper to our childhood? The New York Times aptly addressed the question in their article that asks Can emotional intelligence be taught? The piece mentions growing programs for U.S. kids to immerse themselves with learning EQ, but Dr. Thomas Achenbach’s Working with Emotional Intelligence presents a dire case. Achenbach discusses the “paradox” of how children’s IQ increases, yet their EQ dwindles. As a result, according to the survey with teachers and parents, the present generation of children

their lowest being risk tolerance, focus and problem-solving. It’s ironic, as men’s highest capabilities are focus, problem-solving and risk tolerance, while their lowest were reflection, adaptability and connection. Completely opposite!

is “more emotionally troubled than the last.” The average child is lonelier, more depressed, angry, nervous, prone to worry, impulsive and aggressive. WHAT’S NEXT? For the Middle East, its scores for health are below average compared to the rest of the world, hinting of a risk on physical and/or mental burnout. By contrast, Middle East scores for decision-making and influence are above average, indicating the ability to engage with people easily. That said, the low scores on entrepreneurship and vision indicate that these capabilities may only being used for short-term actions. There’s a lot to be done, but the first step is recognizing the significance of developing one’s EQ and strengths of individuals of the MENA workforce.

IN THE MIDDLE EAST POPULATION SAMPLE, THE STRONGEST TALENTS WERE ADAPTABILITY, REFLECTION AND PROBLEM SOLVING, WHILE THE LOWEST WERE COLLABORATION, VISION AND ENTREPRENEURSHIP.

UNDER 40 VS. OVER 40

The biggest gap is between emotional insight and collaboration. Those under 40 years of age scored high on adaptability and problem-solving- the over 40s’ lowest measures. Conversely, while those over 40s had emo-

tional insight and collaboration as highest, it was the lowest of those for under 40. It’s quite obvious there’s a ‘mirror image effect’ in brain apps in both gender and age differentiation– an indication that creating diverse teams is best for efficiency.

TECH

George Orwell saw it coming

I Net Neutrality on the brink The end of the internet as we know it?

he open internet is something that many would say is taken for granted. It has become a platform for doing all sorts of things both in your professional and personal lives, and it has become something so constant and available that most perceive it as a right. Setting that aside, we tend to forget something very important about the internet as an open platform; it puts everyone on a relatively equal playing field, also known as net neutrality, whether you’re a sole proprietor, small-medium enterprise or multinational corporation. But things might be changing very soon, and it could change the internet as we know it. In 2014, a court ruling removed the Federal Communications Commission (FCC) of its ability to make sure that telecom companies adhere to principles of net neutrality, killing the FCC’s Open Internet Order that was passed in 2010. So what does this mean? Internet service providers (ISPs) can block or slow down websites and applications for personal gain, such as market competition. If they’re not blocked, they can also be charged to run through that ISP. They

could also charge you extra based on the amount of data consumption you have, rather than charge everyone with one flat monthly rate. Many people are weighing in on the debate: Organizations like the American Civil Liberties Union (ACLU) and even talk show hosts such as John Oliver have expressed their concern and disapproval over this change, and petitions have been circling trying to bring back the open internet that we are familiar with. With most American internet subscribers using internet through AT&T, Verizon, and Comcast, we can see this affecting the vast majority of users. Google might be able to afford paying to have YouTube run smoothly, but can you imagine having to pay extra to watch unlimited YouTube videos everyday? Here’s some food for thought: How are entrepreneurs going to be affected by this new era of internet? The internet has been an effective tool, both for marketing and cost-efficiency. If the shackles of the FCC have been cast aside, it might also take away entrepreneurial spirit right along with it.

t’s more than just Facebook, Twitter, email, and your phones- National Security Agency (NSA) data collection doesn’t stop there. According to the documents leaked by Edward Snowden, the agency is taking in millions of images a day, and the agency claims that recent developments in facial recognition technology will “revolutionize” their ability to find targets worldwide. Recent failed terrorist plots, most notably Faisal Shahzad’s attempt to set off a car bomb in Times Square have been the catalyst to facial recognition technology development and the skyrocketing of gathering images and fingerprints. This certainly isn’t just a phase; both the government and private sector are investing heavily (supply and demand). According to Jennifer Lynch, a lawyer at the Electronic Frontier Foundation, the government is investing billions in “developing facial recognition databases”, while the private sector does the same in the facial recognition technology itself. Is this legal under the U.S. constitution? We aren’t sure, and neither are legal experts from various civil liberties groups. What legal experts are saying though is that the law’s ambiguity places the whole situation in a massive legal vacuum. Does this mean we’ll be seeing less selfies all over the internet?

juLY 2014

Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

A REGIONAL TALENT WAR? LEADING UP TO 2020 AND 2022 COMPANIES MUST TRY HARDER (AND BE SMARTER) WHEN TACKLING TALENT RETENTION By Rahul Dhadphale

he GCC states are experiencing phenomenal economic growth. The UAE, led by Expo 2020, and the rapidly growing economy of Qatar in the run up to 2022 present new challenges for employers in the region when it comes to talent. Whilst some 277,000 jobs are expected to be created in the run up to Dubaiâ&#x20AC;&#x2122;s Expo alone, employers must ask where will the talent come from? High quality talent is always at a premium and with the demands for large numbers of employees starting to soar, this premium is likely to increase, especially given the close proximity of the two nations. As demand for experienced talent increases, could we be on the verge of a regional talent war?

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Attracting people to work in the Gulf is not in itself a huge issue given tax-free salaries (and added benefits), but keeping them for sustained periods is where the real challenge sits. How do we retain high quality talent in the region? Until now, most organizations have used salaries as their main weapon; however as the prospect of a talent war brews in the GCC, businesses must also explore other options to retain human capital. Organizations who want to attract talent need to be looking creatively at where to find the right people with the greatest potential and then offer them attractive packages that include development opportunities amongst others. Human Resource professionals must therefore think more strategically about talent retention assuming we are employing good quality talent. MEANINGFUL ON-BOARDING

One aspect many companies are trying to adopt is that of meaningful on-boarding. This is not just the typical boot-camp approach, but one where the new employee has a complete understanding of the role on offer, expectations managed, and a thorough understanding

retain top talent. Intelligent young talent are seeking organizations where these concepts are not just talked about, but truly applied regardless of industry or sector. If we remain tactical in our approach, for example raising salaries alone, we will hit a threshold that is not sustainable– and talent retention becomes transactional. This therefore is an excellent opportunity for us to stop and think strategically about talent and then implement properly the appropriate tactics.

of the leadership’s commitment to the organizational development. Employees must have a better understanding of how their career can and will grow and be managed. This should be made explicit to all potential employees so everyone is clear about what success can and will look like for them. SUCCESSION PLANNING

HR managers must work actively on succession planning, not just around the milestone dates of 2020 and 2022, but way beyond that. Succession planning will support business and economic sustainability for years to come if they are truly committed to operating here. Organizations must plan forward and then ‘develop’ their

ORGANIZATIONS WHO WANT TO ATTRACT TALENT NEED TO BE LOOKING CREATIVELY AT WHERE TO FIND THE RIGHT PEOPLE WITH THE GREATEST POTENTIAL AND THEN OFFER THEM ATTRACTIVE PACKAGES THAT INCLUDE DEVELOPMENT OPPORTUNITIES AMONGST OTHERS.

talent to meet the expected demand. It would be unfair to the employee to be promoted beyond their current capability and experience without giving them the relevant tools. PURPOSEFUL AND CHALLENGING JOB ROLES

Often organizations can be short-term in their hiring demands or have a ‘tick-box’ approach to hiring. Thinking more critically about ensuring the roles and jobs on offer are purposeful and challenging can pay dividends. One implication of this is to revisit job descriptions and role definitions already existing. Many recent studies have shown that the younger talent are, the less inclined they are to be loyal. They are seeking fulfilment in the jobs they do and the value they create. Given this, we must give potential employees a role that has ‘meaning and purpose’- this in itself will not stop attrition but at least serve to mitigate against it. LEADERSHIP DEVELOPMENT

Leadership Development is the current trend in the Gulf among many companies. This is only truly effective if the company’s leadership can demonstrably

show what ‘good’ leadership looks like. Far too many companies are reluctant to make the necessary investment of time and money to make leadership development truly effective and meaningful for employees, for fear of them leaving. But the contrary is worse- that is, we do not develop this talent pool and they stay! Each GCC nation’s vision clearly has human development as a key pillar, something that is sometimes not as effectively implemented as it could be. Many business and community leaders will agree that leadership development and its associated skills are critical in markets and environments that are changing as dramatically as they are here in the Gulf. INNOVATION, CREATIVITY AND ENTREPRENEURSHIP

Linked very much to leadership are innovation, creativity and entrepreneurship. This implies creating a learning culture beyond compliance of processes. These concepts are widely talked about but few institutions outside the usual suspects of Apple and Google live and breathe this, which is why they seem to be able to attract and

Organizations in the region have a responsibility to making sure they are creating an environment where talent flourishes. Whether there is a war on talent or not in the region, the challenge with retaining it is here. The market demands are huge and employee expectations are high, and talent is still in relative short supply. How we attract top talent into the region in itself is not enoughretention is key if we are to develop a sustainable economy over the many years to come.

Rahul Dhadphale, in his capacity as Regional Director for Executive Education for London Business School (LBS) based in Dubai, has complete responsibility for client relationship and business development regionally for Executive Education. In the Gulf, Dhadphale has managed and continues to manage relationships with some of the most prestigious locally based institutions including governmental, financial services and oil and gas sectors. Prior to LBS he worked as a Senior Consultant with StratX, an international boutique consulting firm based in Paris (chaired by Jean-Claude Larréché the Alfred H. Heineken Chaired Professor of Marketing at INSEAD). Awarded his MBA from Bradford Management Centre, Dhadphale specialized in International Business Strategy. In addition, he is an alumni of the London Business School (ADP80) and has successfully participated in and completed a number of specialist training programs. juLY 2014

Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Coping with L pressure? Six ways to deal with feeling overwhelmed By Mark Sephton

ife comes with so much noise. People, media, business, sports teams, restaurants, shop brands… they’re all vying and screaming for our attention. So much choice, so many possibilities, doors and avenues that we could potentially explore. What is to be said for the entrepreneurial men and women who seek refuge and council from the daily pressures and responsibilities of not just work or business, but of life itself? What do you do when you feel overwhelmed? Who do you turn to? Do you cave in under the seemingly insurmountable deluge of pressure? As entrepreneurs, we are often guilty of bringing about our own noise and self-made pressures. We are creators, often visionary. We love inventing and expressing multiple ideas all at the same time. We need to continually look up, see the bigger picture and rediscover our current GPS. The current cycle within our business or endeavor often alters the way we think and feel. There is something to be said of our current feelings and circumstances, they are temporary, and we need to stop seeing them as permanent. Here are six steps to help you obliterate the sense of feeling overwhelmed. 1. THINK BIG PICTURE

We can often be blindsided by our current situation and endeavors. We often feel overwhelmed by the here and now. A mindset shift and realization that what we are currently going through will evolve and move us into a different realm can reassure you and it will also remind you to breath and consider the feelings in a wider context. It’s a great reminder that while feeling overwhelmed over long periods is not healthy for you, being out of your comfort zone is the best place to be. When we lose the tension between where we 62

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are now and where we want to be, we will stop growing. When we go through new challenges, difficulties and pressures that we’re unfamiliar with, we often have to go through the pain, stress, and overwhelming feelings during this transition period. Considering the bigger picture will keep you focused and reaching forward. 2. PRIORITIZE

There is always something to do; we all have an endless list of tasks, requirements, goals, and objectives. What do you do? Freeze, panic or become lethargic? When it comes to prioritizing, I look at which endeavor will give me the greatest return of investment on my time, money, and energy. Which one launches me forward towards my purpose and life vision? Which one plays to my strengths and harnesses my passion? Which task will open doors? Don’t be swayed by instant gratification, instead look at the end goal. Start with the end in mind. It’s about managing your energy, and not your time. Say yes to those things which play to your strengths and fuel your passions and say no to everything else. You are the author of your life. 3. ASK FOR HELP

As entrepreneurs it can take years before we allow others to help us. We love to problem solve and we are great at it. We achieve more when we play to our strengths and hire our weaknesses. I have worked with a success buddy over the past two years. A success buddy is someone whom you trust, value, and who has a similar entrepreneurial mindset. Each Friday I meet for a coffee or have a 30 minute call with my success buddy. We discuss our wins, losses and challenges from the week- it’s a great way to lean on someone. Relationships do take a time investment, but

when you have that level of honesty, trust and accountability, it’s much easier to ask for help because the key people are already around you. If you struggle with asking for help, you need to consider the people and framework that you’ve built. Asking for help is not a sign of weakness, it’s a need to build a relationship and it’s an acknowledgement that none of us are indestructible. 4. TAKE ACTION

When we are drowning in an overwhelming state, it’s essential that we don’t allow those feelings to paralyze us and stunt our action. Taking action wages war against this foe- if any of us die, let us die in battle. There is a right way to lose, a right way to be defeated, there is no room for self-sabotage in the entrepreneurial revolution. Be proactive, don’t just live a life that is reactive. Have a plan of action, work that plan, and always make room for the unexpected to happen- the very best plans come unstuck if there is no room for the unexpected. 5. CREATE BOUNDARIES

Drawing lines prevents others from dumbing on you, and it also protects you from yourself. If you are a key influencer, everyone is going to want your

time, mind, and listening-ear. Scheduling time out so that you can consider your own thoughts, and allowing your soul to speak to you is a great way to find solitude in the storm. The safest place within a tornado is in the very middleamongst the chaos, noise and excitement, creating boundaries where you center yourself and find the eye of the storm is going to be hugely important to wrestle this adversary to the ground and keep him pinned. 6. POWER DOWN

Do you have a switch-off time? Do you schedule a time to sleep? You should, otherwise we are all in danger of going to bed at 3a.m. because we never

stop. We love what we do- it’s natural and exciting. Sleep deprivation is prevalent in the life of an entrepreneur, and it’s affecting your brand, results, and most importantly your capacity for decision-making. We must power down, and just like a computer you must do so via a process and not be tempted to just crash the system. Not using electronic devices an hour before bedtime helps your mind unwind. If you’re checking your email and thumbing-through social media just before bed, you are less likely to sleep as your mind is stimulated and aroused by ideas which often only trigger the overwhelming state of mind that we are trying to combat.

See Mark Sephton speaking about this topic in a video on our website www.entrepreneurmiddleeast.com

Mark Sephton is an international personal mentor to entrepreneurs, basing his program on a GPS system with eight key fundamentals. This system reveals blind spots, efficiencies and deficiencies, and is used to find your “inner sniper” to improve your instinct, producing devastating results in your own revolution of discovery. It is hard to see the picture when you’re in the frame. Changing the way you think through culture and mindset shifts and introduced to game-changing habits helps increase your productivity and skyrocket your personal brand. www.marksephton.com juLY 2014

Entrepreneur

The end all and be all

Be a successful entrepreneur by exploring your valuable network By Hussein Hallak

ntrepreneurs face big challenges that need a lot of experience, tons of energy, and many sleepless nights. Be it marketing the business, securing enough capital, or finding the right people, these are only the tip of the iceberg. As an entrepreneur, you may be passionate, committed, and driven, yet, the business may still fail. Why? Many things may contribute to a business failure, but there is one that even veteran business leaders fall for: starting, running and maintaining a business while forgetting its purpose. 64

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Peter Drucker said it best: “The purpose of business is to create and keep a customer.” If you have a customer, you have a business, if you don’t, you have a hobby. The biggest challenge with “creating and keeping a customer” is that you may see it as a marketing or customer care function. It is not. It is the purpose of business, and marketing is the process through which this purpose comes to life in every aspect of the business. Unfortunately, with the increased use of technology and automation, and the rise of social media networks, we have lost touch with some fundamentals. One widely misunderstood and poorly practiced fundamental is networking. You will not be alone if you think of it as compiling a huge database of contacts. Some see it as the opportunity to sell to many people at once. And many still perceive it as nothing more than schmoozing and boozing, a way to be seen and socialize; a waste of time I hear you say. Dr. Ivan Misner, the father of modern networking, gives a newer and truer definition of networking: “The process of developing and activating your relationships to increase your business, enhance your knowledge, expand your sphere of influence or serve the community.” There is no one practice, tactic, or strategy that can impact: 1. Growth Increase your business. 2. Learning Enhance your knowledge. 3. Reach Expand your sphere of influence. 4. Value Serve the community. That is why networking can make the difference between the success and failure of a business. So how can you use networking to your advantage as an entrepreneur? Here are some ideas on how networking can help you solve some of the top business challenges you may face today or in the future. GETTING STARTED Be present at gatherings and social functions with friends and family, and in community activities. Get to know the people who are already in your sphere of relations, see where you can help and add value. These people will be the ones you rely on for support when you face the challenge of ditching your steady job. Some will have the skills to help you write your

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

business plan, give expert advice, and help you develop your elevator pitch. Ask and listen, you may find people in your network with access to valuable knowledge and market insight. BRANDING/MARKETING We are social beings, driven by social influence and pressure. Advertising works, but a recommendation from a friend is 200 times more powerful, 200 times more effective. If you have developed your relationships with your network, they will jump at the opportunity to help you. A recommendation from a friend is paramount when you are marketing a product or service that’s ahead of its time. Your friends will not recommend your product or service if they are not convinced. Ask for their feedback, so you can build a product that is viral- one that people will want to tell their friends about. This becomes even more amplified with the use of social media. Your friends’ reach and influence extends your reach and influence. Ask them to share their experience with their friends, and even with the local radio station or newspaper. Create videos of them using the product or service and build on their perspective to get fresh ideas for content. Even if you start with 10 people who believe in you, you can reach their networks too.

you and be more interested to help. If you have missed the mark, they will most likely tell you how to make it right. Put simply they will give you another chance, something you might not get through the usual channels. MANAGEMENT One of the challenges of running a business is managing suppliers and partners. Having a strong network of people can help you find suppliers and partners you can trust, that cause you less stress and come with great added value. STAFFING Internal networking with your people is crucial. By cultivating relationships with your team, you will get to know them better and learn how to manage them better as a result. We always choose to work with people we know, like, and trust. Through networking, people develop an affinity for each other, and they are more likely to want to work with each other, even

TREPONOMICS

if the pay is less. A network of positive and powerful relationships, built on open and honest communication, becomes a center of influence in an organization. It shapes the culture, and drives the organization towards excellence. CLIENT RELATIONS Finally, your network is the ideal starting place to get the word out and to get recommended clients. Clients who come through recommendations are the most valuable. They are more likely to buy, less likely to be price sensitive, more likely to return and recommend other people too. As an entrepreneur, networking and building relationships is probably one of the most important activity you can engage in. Do it with passion to develop and cultivate meaningful relationships. Do it with unwavering drive to add real value. And always remember to do business with people you know, like and trust.

Hussein Hallak is an awardwinning strategist and communication specialist. As the Learning & Development Director of BNI Middle East, Hussein works with the BNI Director Consultants team to design and lead game changing workshops for the leadership teams of BNI chapters. As the Group CEO of INFIN8VENTURES, he leads a team to deliver strategy and communication solutions to leading UAE, GCC and International clients. Hussein is also the Vice President of Communication & Marketing of the Business Marketing Association, the Executive Director of Thought Leaders and the co-founder of The Content People in Middle East. A recognized keynote speaker and presentation Zen master, Hussein presented at the BMA Middle East Conference, Training and Development Show, Extraordinary Entrepreneurship Mindset, Digital Media Forum and The Internet Show.

MONEY MATTERS You never know how deep the network of the people around you is. Instead of waiting to pitch at the next startup weekend, your ideal investor might be a phone-call away. Not only will you have the chance to get financing, you will also get proper feedback and help if you don’t make the cut. A person who you meet through a recommendation, is more likely to care about juLY 2014

Entrepreneur

money

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

YOUâ&#x20AC;&#x2122;RE MISSING

THE NEXT BIG THING

CONSIDER INVESTMENTS IN THE GLOBAL HALAL INDUSTRY Itâ&#x20AC;&#x2122;s time for entrepreneurs to look at the opportunity cost of not exploring faith-inspired consumerism By Rushdi Siddiqui

fter credit crisis I (US subprime) and credit crisis II (Eurozone sovereign debt), investors are looking for the next risk-adjusted BRICS (Brazil, Russia, India, China and South Africa) opportunity: Growth story in a growth opportunity with growth demographics. Furthermore, after food scare incidents in the U.S., E.U. and China, consumers are looking for ingredient transparency for not only their foods, 66

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but also in the arenas of cosmetics and pharmaceuticals. The opportunity may no longer be about a clustering of countries play, be it MIST (Mexico, Indonesia, Saudi Arabia and Turkey) or CIVENT (China, Indonesia, Vietnam, Egypt, Nigeria and Turkey). The new BRICS may just be about faith inspired consumerism, especially if the target population is 1.8 billion and target market expenditure is in excess of US$2 trillion.

The Muslim market globally, non-monolithic but united by faith-based rules of engagement, should be viewed in the context of affinity clustering, much like the large and expanding Hispanic market in the United States. It will follow the consumerism path laid out by the Hispanic market, as it’s about business and not promotion of a religion or ethnicity. The right formula will yield loyal customers resulting in natural entry barriers, hence minimizing margin compression pressures.

chain integrity, human capital deficit, consumer education, operational excellence, venture financing, and so on. Get it right and it will add to the bottom line with headline numbers, but get it wrong and there is serious brand and integrity risk to the company, as confidence and trust is extremely difficult to recapture.

FOOD PLAY Muslim consumers globally spent $1.088 billion in F&B consumption in 2012 (essentially or 16.6% of global expenditure), and that figure is expected to grow to $1.626 billion market by 2018. The usual suspects of (non-Muslim owned) global brand food companies are capturing the

market, but the halal pie is expanding allowing for the entry invitation of other players. Nestlé, the world’s largest food manufacturer, has 150 halal-certified factories worldwide. It would be interesting to know how many of these factories were financed with Islamic finance structures for an end-to-end halal solution. >>>

SIX SILO OPPORTUNITY Today, Muslims are consumer investors in the six silos of halal industry, and need to become financial investors to control their ‘halal’ destiny. To date (at the befuddlement of many), the $1.3 trillion Islamic finance has at best nominally financed, investedin, or insured (Takaful) the asset-backed Halal industry. Basically, it will compete with conventional capital to get a piece of the halal pie, which just wants access to capital at the SME level! As a whole the Muslim consumer expenditure globally on food and lifestyle sectors -travel, clothing, pharma/personal care, media/recreation- is estimated to be $1.62 trillion in 2012 by the 2103 State of the Global Islamic Economy report (SGIE) by DinarStandard and Thomson Reuters. The SGIE projects that the already-significant expenditure is expected to reach $2.47 trillion by 2018. This niche market is both ripe and right for the taking, however the landscape is mine-laden with challenges like standardization, compliance, supply

TO DATE, THE $1.3 TRILLION ISLAMIC FINANCE HAS AT BEST NOMINALLY FINANCED, INVESTED-IN, OR INSURED THE ASSETBACKED HALAL INDUSTRY. juLY 2014

Entrepreneur

money

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

THE STATE OF THE GLOBAL ISLAMIC ECONOMY 2013 REPORT PRODUCED BY THOMSON REUTERS IN COLLABORATION WITH DINARSTANDARD (AUTHOR/ LEAD RESEARCH)

SIX SILO OPPORTUNITY LANDSCAPE The halal lifestyle market, and the drivers fuelling the phenomenon forward.

Today Muslims do not control the halal food supply chain, and wealthy regions (like the six-country GCC), are net importers of food implying a food security risk. Does this present an investment opportunity for private equity? In the Muslim world, halal food companies, publicly listed and privately held, are dispersed and fragmentedhere an opportunity exists to address food security issues in the growing and expanding Muslim world via a roll-up strategy. In the private equity agro-food buyout space the right mix for traction includes typical elements such as an experienced fund manager, team chemistry, proprietary deal, etc., but the most important element is the ability 68

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to connect with sellers. It must not been seen as a financial engineering play with use of excessive leverage and dividend take-out. It must come across that you will help them grow (alignment), especially into new markets as you understand not only import regulations, but also halal certification issues and have access-to or own a distributor. Thus, building a ‘Muslim Nestlé’ will not happen organically; growth by acquisition, especially distributors, in different geographies will build an effective ‘hub and node’ halal-agro food company. TODAY, MUSLIM WEALTHY REGIONS ARE NET IMPORTERS OF FOOD IMPLYING A FOOD SECURITY RISK.

LIFESTYLE The approach to the halal non-food segment for investors and financial institutions is a mixture of investing, private equity and venture capital, financing, from capital equipment to operating expenditures, to trade finance to facilitate access to new markets via exports. The SGIE report shows Muslim spent $70 billion on pharmaceuticals (7% of global expenditure) in 2012, and is expected to grow to $97 billion by 2018. The major pharmaceutical companies Merck, Pfizer and GlaxoSmithKline are presently engaged in halal certification of their medicines marketed to Muslims globally, but an untapped market exists for halal vaccines. The cross of

appeal to non-Muslims of halal pharma is ingredient transparency. The same report suggests that global Muslim spending on cosmetics and personal care products was at $26 billion in 2012, and is expected to grow to $39 billion by 2018 representing 7% of global cosmetics expenditure. The increasing use of plantbases (over animal-bases) and alcohol-free product preference has made halal cosmetics attractive to both a Muslim consumer base and a non-Muslim eco-conscious consumer base. In terms of tourism, the report estimates global Muslim spending on travel (outbound) to be $137 billion in 2012 (excluding Hajj and Ummrah), and is expected to

grow to $181 billion market by 2018 representing 12.5 % of global expenditure. It should be noted that the collective global Muslim tourism market is bigger than the largest tourist-bound country: the United States. The tie into halal medical and wellness tourism presents opportunities for countries to attract medical tourists from the GCC. The report also looks at fashion: The Muslim population is estimated to have spent a total of $224 billion on ‘clothing & footwear’ in 2012, representing 10.6% of global expenditure, and is estimated to reach $322 billion by 2018. The Muslim spend on clothing/footwear is only second after the largest market in the world: the United States at $494 billion of spending over the same year. This is indicative of a window of opportunity in relevant fashion spheres!

MUSLIM CONSUMERS GLOBALLY SPENT $1.088 BILLION IN F&B CONSUMPTION IN 2012, AND THAT FIGURE IS EXPECTED TO GROW TO $1.626 BILLION MARKET BY 2018

The numbers speak for themselves: The halallifestyle market is $2 trillion plus the six silo consumerism market, and it’s expected to grow with the growing demographics and psychographics of Muslims plus the cross-sell to non-Muslims. It’s the new BRICS asset class waiting to be tapped! As far as Islamic investments go, a huge opportunity exists for the market that Muslims globally are contributing to as consumers. Finally, the cross-appeal to non-Muslims for halal products (branding aside) is about ingredient transparency- an easy enough feat to address.

Rushdi Siddiqui is a Senior Partner at DinarStandard. Featured in Global Leaders in Islamic Finance, Siddiqui previously co-founded and acted as Managing Director of Azka Capital, a private equity advisory firm for the halal industry with former Prime Minister of Malaysia, Mr. Abdallah Badawi. Rushdi is also co-founder of www.shekra.com, a Cairo Islamic crowdfunding company. Formerly the Global Head of Islamic Finance & OIC countries for Thomson Reuters, he is now an advisor to the company for Islamic finance, the halal industry, and OIC. He has held senior managerial positions at various Western and global multinational companies, and led his global team to establish the world’s first Islamic equity index, first Sukuk index, first Islamic sustainability index, first halal food index (SAMI), and first Islamic interbank benchmark rate (IIBR). Siddiqui also contributed to the world’s first Islamic Exchange Traded Fund (ETF) in Europe (Turkey and France), Asia (Malaysia) and the U.S., led the index provider to be the first to have licensed Islamic assets under management of $7 billion, and led a team to establish the world’s first comprehensive pre-trade multi-asset Islamic finance platform. In addition to his participation in the International Islamic Advisory Committee for Malaysia’s Securities Commission in 2011, Siddiqui was part of the Dubai International Financial Center (DIFC) Islamic Finance Advisory Committee (IFAC) from 2007 to 2011, and is also a Visiting Scholar in Islamic finance for International Islamic University in Malaysia (IIUM).

TECH TARGET MARKET BlackBerry 10 Zakat app

BlackBerry 10 users can now calculate Zakat on their smartphones. Zakat is one of the five pillars of Islam, where one pays a small percentage of their annual wealth to the needy. The Zakat Fund is a free app that offers various services like calculating your Zakat with the Zakat Calculator, and the Zakat Fund News that contains a list of Zakat Deservers. BlackBerry hopes that their existing users in the Middle East will find this a beneficial and practical app, especially during the holy month of Ramadan. Looking at it from a business angle, it’s safe to say that Zakat Fund bodes well for BlackBerry’s Muslim user base in the Middle East, as well as CSR. With BlackBerry’s global user-base diminishing, it seems ideal to sustain its support in the Middle East, one of its most concentrated markets. juLY 2014

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CSR and social media can work for your brand Telco is du-ing it right during ramadan

n addition to their already-engaging social media presence and quick response time, du has developed a CSR campaign that both gives back to the community and has the social media community send a bevy of usergenerated content their way. The #30DaysofSharing campaign is active on Twitter, Instagram, and Facebook, and encourages du followers to share their special Ramadan moments. For each shared post using the hashtag, a 10 AED donation is made to the telco’s annual “Iftar tables” movement. The Iftar meals for those in need are distributed at three locations across the UAE: Next to Hazza Bin Zayed mosque in Abu Dhabi, next to Nad Al Qusais mosque in Dubai, and next to Al Fisht Mosque in Sharjah. When done correctly, CSR social media campaigns are a win-win situation for both brand interactivity and demonstrated userengagement, and it also genuinely fosters good feelings toward a company, no matter how big. Get active, and get it right… you’ve got 30 days of Ramadan to du it!

ONCE IN A BLUE MOON T RAMADAN GIFTING BY LANGE

he A. Lange & Söhne moon phase watch range makes a great Eid gift. For the ‘trep on your list who appreciates fine timepieces and holds a special affinity for Ramadan, any one of the five Lange options is suitable. The watches boast star atlas images from the Harmonia Macrocosmica by historic Dutch cartographer Andreas Cellarius. The Harmonia Macrocosmica, published in 1660, can now be found online in hardcover by Dr. Robert van Gent as Cellarius Atlas: The Divine Sky - History’s Most Beautiful Celestial Atlas (Harmonia Macrocosmica of 1660) on Amazon.com and Taschen’s online site. Our suggestion? Get both so that the receiver knows the significance and historic relevance of the timepiece’s singular design.

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ASK (IN ARABIC) AND YE SHALL RECEIVE Jawabkom’s Raed Malhas has all of the answers By Kareem Chehayeb

awabkom sounds like an Arabic Ask.com, but Jordanian ‘trep Raed Malhas has developed an online service with greater depthand it’s filling the market need in the MENA region for a majorly underrepresented online demographic. Malhas, who says that his “passion is to build products that can positively affect tens of millions of lives,” noticed that Arabic speakers don’t have a website that provides a platform for them

to speak with experts in different fields online if they have a particular question. “When studying the Arab market, we found that there isn’t a Q&A site like Quora or JustAnswer so, we saw an opportunity and built Jawabkom.” Jawabkom has experts from different fields, including law, medicine, information technology, and nutrition, all targeting the Middle East’s 400 million strong Arabic-centric population. Malhas is a Purdue

University alumnus with a degree in Computer Science, and comes from a family of ‘treps. His dad co-founded an Arabic computer company called Sakher. His entrepreneurial idol? Paul Thelen, founder of Seattle-based Big Fish Games. So what’s setting up an online service with a variety of experts like? Malhas worked at light speed- after setting up a quick trial website last October, Malhas and co. tested it in a few countries and subsequently formed Jawabkom “within weeks”. They hired 14 employees through another venture of Malhas’ R&D Labs, and then connected with Arabic-speaking experts in a variety of different fields. It seems like a majorly capital-intensive project, especially with the experts who are taking in questions on a daily basis. That said, Jawabkom certainly have money in the bank: “R&D Labs funded the first couple of months of development, operational, and marketing costs,” said Malhas, who later garnered US$250,000 through angel investors MENA Ventures. ROI? “Taking out the operational cost, our ROI is: 210%. That means, for every $1 we spend, we make $2.1 back on average.” “FOR USERS WHO HAVE LESS ACCESS TO PAYMENT METHODS OR ARE IN LOW INCOME AREAS, WE DECIDED TO LOOK INTO PROVIDING THOSE USERS WITH POTENTIALLY FREE ANSWERS DELIVERED BY VOLUNTEER EXPERTS, WHEN THESE USERS INVITE FRIENDS FROM FACEBOOK”

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GRAPHS COURTESY JAWABKOM.COM

Web traffic per device: in Middle East | Q1 2014

Despite having the capital, when talking about keeping Jawabkom running smoothly, it seems that Malhas and co. have a lot on their plate. A lot of it has to do with the straightforward fact that they’re catering to the Arabic-speaking audience of 22 different countries. Raed Malhas said that “without truly understanding our users in each and every Arabic country, our product won’t be ‘sticky’ or ‘relevant’, and it won’t grow. While we continue to grow rapidly, it is crucial for our team to continue to closely study the behavior, and needs, of users in each country, so we can tailor our product.” I guess it’s no surprise that most of their operating costs are allocated to marketing and product development. And what successful marketing strategy was used to gain so much traction? Facebook and good old SEO. Malhas currently has 60 experts for Jawabkom, and they’re compensated to answer all questions that the wesbite’s users ask through their paid services. That said, he has adopted something

that slightly resembles a freemium model. Aware of the staggering differences in economic conditions, specifically GDP per capita, Jawabkom also works with volunteer experts. “For users who have less access to payment methods or are in low income areas, we decided to look into providing those users with potentially free answers delivered by volunteer experts, when these users invite friends from Facebook,” explains Malhas. It’s clear that Jawabkom does all they can to make sure they are able to provide the answers, but are Arabs in the Middle East asking questions? Since Jawabkom launched in January, Malhas claimed that they have grown “exponentially. We started getting hundreds of questions posted a day almost immediately and now we’re getting over 3,500 per day.” Want to learn more about their user-base? When it comes to gender, it’s almost at an even split, with males making up 50.9% of Jawabkom’s users. 42% of Jawabkom’s users are under 25 years-old,” said Malhas referring to an UN report that concludes that approximately 50% of the

region’s population is below the age of 25. And finally, regarding geography, it appears that most of Jawabkom’s users are active in Egypt and Saudi Arabia, but there is an evident presence in Jordan, Morocco, Kuwait, Iraq, and the UAE. When asked about the most high-volume question categories, we were told that

“TAKING OUT THE OPERATIONAL COST, OUR ROI IS: 210%. THAT MEANS, FOR EVERY $1 WE SPEND, WE MAKE $2.1 BACK ON AVERAGE.”

there are three exceptionally popular ones at the moment: “Legal, medical, and dream interpretation.” It doesn’t stop there though; the folks at Jawabkom are really keeping tabs on their demographics. Malhas was very eager to share some interesting information that he believes speaks volumes about the region, including the fact that 32.3% of people who asked legal questions are under the age of 25, 48% of them being women. His take? “My guess is that the Arab Spring has had a hand in the interest in law.” What really stood out for us was dream interpretation; it sounds like some whacky psychology experiment, but it really has to do with theological interpretations of people’s dreams. The experts for that category have backgrounds in religion and theology, and Malhas maintains that it was an instant hit across the Arab world. Malhas says that after a mere two months, dream interpretation has “become one of the most popular topics and has already had 60,000plus questions posted.” Jawabkom’s team studied the different kind of questions asked for that category from the different nationalities and >>>

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Nutrition questions

yielded some interesting results. While Palestinians tend to dream about land, Syrians dream primarily about death and the military, and Libyans tend to dream about Syria… We’ll leave that last one for you to interpret.

Jawabkom looks like they’re going to sign off their debut year on a good note, but what’s next? You can expect mobile and iPad apps to be available by “mid-summer” of this year. Malhas made this decision based on consumer

behavior, adding that they “actually studied the traffic coming to Jawabkom.com per device, and found that mobile phones accounted for the majority of our traffic in several countries.” Until then, you can log onto the website from your smartphones and have a more mobile-friendly experience on their mobile site. The big plans though are rapid growth, revenue… and then even more rapid growth and revenue. Malhas further elaborated on his big development schema: “We’re averaging around 3,500 questions posted a day with our target being to cross 10,000 questions per day by mid-summer; then double it again by fall.” Not only that, he’s also hoping to raise between $8 and $10 million by the end of the year.

“WHILE WE CONTINUE TO GROW RAPIDLY, IT IS CRUCIAL FOR OUR TEAM TO CONTINUE TO CLOSELY STUDY THE BEHAVIOR, AND NEEDS, OF USERS IN EACH COUNTRY, SO WE CAN TAILOR OUR PRODUCT.” Before signing off, we couldn’t help but ask about his end goal with Jawabkom. “I’d like Jawabkom to become the Quora of the Arab world, with a tiny difference: I’d like it to generate real revenue.” There you have it, while many startups often struggle with the big question of how exactly to monetize on their ingenuity, it seems that this founder has already found the answer.

THE SHOW THAT MIGHT GET GEEKDOM RIGHT HBO’S SILICON VALLEY POKES FUN AT TECH CULTURE By Pamella de Leon

ech culture has been underrepresented –and often extremely stereotyped- in television and film. We’re in a time where social media platform origins are turned into blockbuster movies and everyone’s got a book out. It seems that everyone wants more startup rags-to-riches stories and we may now have a contender with HBO’s Silicon Valley. It’s a comedy series following the pursuits of a socially-awkward computer programmer from Hooli, a Google-like giant tech company who, like most engineers, has a side project: an app that helps people find out when someone is stealing their music (and accidently creates an efficient data compression algorithm). Silicon Valley reflects and lightly mocks contemporary startup life, with the protagonist first’s major decision familiar to entrepreneurs and viewers alike: Whether or not to let his employer Hooli acquire his company for US$10 million or take a VC offer

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of US$200,00 for 5%. Just a reminder: Facebook acquired Whatsapp for US$19 billion, while Snapchat’s founders declined US$3 billion to sell their company. The show was created by Office Space writer Mike Judge, and portrays the idiosyncrasies and fierce competition in Silicon Valley. Friends are booted from companies they helped launched, clever college students are encouraged and paid by an investor to drop out to start their own ventures (something that billionaire PayPal co-founder Peter Thiel’s fellowship program offers in real life), launch parties where no one cares that Kid Rock is performing, and a montage of various pitches that their app can “make the world a better place” that’s familiar to startup conference veterans – the show has plenty for anyone. Unfortunately for female characters, there is still a glass ceiling and we can only hope it gets better next season. So far, the only regular female

character is an assistant to a tech mogul, and subtly hinted as a possible romantic interest for the protagonist. Whether a geek or not, between its coding and business talks, the show balances it with blunt jokes and amusing characters. Overall, it’s interesting to see, in only so ‘treps can reflect on the best, the worst, and the craziest (as promised from their season one finale) of the tech bubble.

GRAPH COURTESY JAWABKOM.COM

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Startup mechanics JORDANIAN-BASED MARKABATY DOES EVERYTHING EXCEPT GIVE YOU A TUNE-UP By Kareem Chehayeb

ou’re in the middle of nowhere, and your car breaks down. You never saw it coming, you have no idea where you can find the nearest mechanic, and you’re now doomed to living a realCo-founder life episode of Firas Sahawneh Survivor. Abeer Omar and Firas Sahawneh hope that with their mobile app, Markabaty, that nightmare won’t become a reality. The two co-founders

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come from different professional and academic backgrounds; Omar earned a Bachelor degree in Management Information Systems, and has eight years of experience in business development for various firms in Jordan. Sahawneh on the other hand is a self-proclaimed serial entrepreneur, having founded IT-DEV, and has 12 years of experience in programming in both Jordan and Saudi Arabia, working with a series of companies as well as the United Nations. What inspired them wasn’t this morbid scenario in particular, but some of the hardships they dealt with while on the road in unfamiliar areas. Every now and then they “had to call

our friends and family to help us on the road for help or advice when we had a problem with our cars.” That said, it wasn’t always a successful plea for help, and they’d end up having to look for the nearest mechanic who could fix their cars in an “honest way”. But what exactly is Markabaty and what kind of features come with it? “Markabaty App is a car ownership pal; it’s designed for you to help you find the right auto repair shop, keep all your car records and expenses, and to overcome the traffic.” That actually sounds really impressive, but a traffic map and a database of garages is something that we’ve seen done be-

fore with different businesses, most notably F&B for the latter, so how does Markabaty keep up with every type of vehicle? No two cars function alike; each car needs certain services at different times. The app lets you choose your car model and year, and keeps up with it based on its particular specs. That said, while Markabaty doesn’t have every car model and year on its app, Omar and Sahawneh said that

Co-founder Abeer Omar presenting Markabaty during ArabNet

they currently have 55,000 different models between the years 1943 and 2014, and they’re constantly upgrading their database. Markabaty does not sound like an easy app to design, develop, and maintain. The co-founders admit that they “faced a lot of challenges in the design phase,” but explained that having their friends test the app prior to launch was a big help. In terms of capital, we weren’t told

about how capital intensive the app was, but they did say that they were incubated by SeedStartup.com, an international accelerator program for startups in the tech industry. How do they maintain Markabaty? By relying on the consumer. Cheesy, but it can work when it’s used outside of your advertising pitch! “We went beyond a listing model to create a value for the user by adding client ratings and reviews for each auto shop and adding the troubleshooting feature.” And how have people responded to Markabaty? Comments on Facebook and Google Play suggest a generally positive receptionpeople seemed to find the app useful, and that seems to be very important in the startup world in the Middle East. This echoes something that I was told in an interview with PayFort’s Omar Soudodi, an e-commerce payment solutions platform: The entrepreneurial world in the Middle East is powered by the many problems that we face, regardless of magnitude. The co-founders say that social media plays pivotal role, and not just in promoting the brand. “Social media is the best marketing strategy for Markabaty, and it was the most effective platform reaching users and even auto repair companies.” So what’s next for the startup? Expansion. The app presently only works in Jordan, but they’re targeting Saudi

Arabia next with their eyes on the rest of the GCC in the near future. KSA is the duo’s next MENA target, apparently because Saudis make up a large percentage of their 8000-plus user base. Up next are iOS and Windows versions of the app, but they have no plans to introduce Markabaty on BlackBerry 10 despite the smartphone’s GCC market share. And since the co-founders are pretty auto-savvy and collecting droves of information on makes and models, we had to ask: Dream vehicles? Abeer’s is a “Jaguar XJR 2014, and Firas’ is a Mercedes Benz AMG CLS 63.” Maybe they’ll use Markabaty to keep their dream rides in top shape, once their startup hits the bigtime.

“MARKABATY APP IS A CAR OWNERSHIP PAL; IT’S DESIGNED FOR YOU TO HELP YOU FIND THE RIGHT AUTO REPAIR SHOP, KEEP ALL YOUR CAR RECORDS AND EXPENSES, AND TO OVERCOME THE TRAFFIC.”

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SNAPP TO IT! Startup duo focuses on sound design and simplicity to gain market share By Pamella de Leon

ver felt like you should get rewarded for eating way too much at your favorite restos, but feel it’s too much of a hassle to carry around loyalty cards? The solution to ditching the stack of cards bulking up your wallet is to have it with you digitally… on your device. Alborz Toofani, Founder of Snapp, a mobile loyalty reward app, thought so too. “I was carrying [loyalty] cards to places I go to, digitalizing it just makes more sense.” After seeing glimpses of it in Europe, Toofani decided to try turning the traditional cards to a modern tech application in the Middle East, beginning in Dubai. Born and raised in Germany, Toofani studied International Business at the Cologne Business School, and worked for a private investor

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specializing in early stage app investments to help startups. Growing up in Europe, he saw similar products that solved a “real life problem,” and when he found out that a friend was starting an app agency in Abu Dhabi, a year later he followed to start his own venture. Once in Dubai, the 25 yearold discovered MAKE Busi-

ness Hub, a co-working café space for entrepreneurs and startups, where he met the then-owner of the hub, Leith Matthews, who later joined as co-founder and COO. Meeting Matthews, whose business management and marketing background was a benefit, as he became a business advisor and signed MAKE on as one of

the test clients, working with Toofani’s early MVP (minimum viable product). First worked on by Toofani in July 2012, the app went through testing phases, leading to the launch of a prototype in November 2012 and an official launch in May 2013. “It was simple enough that it would work,” says Matthews, adding that his staff enjoys using it and customers appreciate the interaction and rewards. The concept is easy enough: download the app, scan the QR code in that shop and you’ll collect points which will lead to rewards and freebies. It’s good for business too since loyalty cards are effective marketing collateral,

Snapp co-founders Alborz Toofani and Leith Matthews

turning casual consumers to loyal customers who become “card-carrying ambassadors. That’s why it benefits me, the user, and it benefits the venue as well,” says Matthews, and that the mobile revolution enables the concept to be “mobile, engaging and shareable,” making it more popular and accessible. When they first started out, Snapp signed a variety of businesses– a hair salon, nail spa, coffee shops and other restaurants to get different types of consumer feedback. They were soon told that an Android version was needed (now newly launched), and they also found out that businesses where the staff were “old school” -like the hair salon- didn’t result in numbers that were as good. “One of the major things we realized back then is although we were a tech startup, we’re asking clients to co-brand with us therefore our branding has to be good-looking.” This brought about a decision to fully revamp the branding to give partnered businesses like cafés and restos “something they’re proud to show off on their tables.” When they decided to rebrand (which had a bird mascot as the logo developed during the MVP stage), they “wanted to keep the DNA of where it came from. A bird

THE CONCEPT IS EASY ENOUGH: DOWNLOAD THE APP, SCAN THE QR CODE IN THAT SHOP AND YOU’LL COLLECT POINTS WHICH WILL LEAD TO REWARDS AND FREEBIES mascot was always gonna remain.” And remain it has in a sense- look closer at Snapp’s brightly-colored geometric logo. In terms of sales strategy, the duo says that they work with “the city’s best”, surveying different F&B, grooming, and other service-based businesses to identify the “trendleading” establishments in each sector and entice them to come on board with Snapp. It worked. Ten months of implementing the strategy and they have an impressive list of brands under their belt, with plans to replicate the strategy in other cities they grow into, ensuring that it’s not “only a platform that help[s] you get rewarded from your favorite venues, but a platform that helps you discover the city’s best venues as well.” According to Toofani, they get a lot of inbound marketing since when they manage to capture the interest of an influential leader, other people follow– a feat considering they haven’t done any “official” marketing yet. They say their aim is to

let people discover Snapp on their own, in the various places they go to and learn to interact with it organically. According to research from Martiz, 71% of smartphone and tablet users are interested in using loyalty programs with their devices. In addition to their app being available for both iOS and Android, and their website, Snapp is also very active on Twitter, Instagram and Facebook. Matthews says that their users and early adopters

are very “switched-on” and eager to give feedback. They take the opportunity to have real-time conversations with the founder and co-founder personally answering queries online. Is feedback for more features overwhelming? Toofani says they are aware of what people want, but plans to add newer features (such as rewards for discovering new places) in other launches. True to their stance on simplicity, Toofani emphasized, “Simplicity is key to make a >>> juLY 2014

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What’s next for Snapp? In the next few months they’ll put forward additional features to the app, and plan to release BlackBerry 10 and Nokia versions. Toofani knows the hurdles ahead, such as dealing with licensing problems in different countries, but is adamant that they’ll reach their end goal- to be the one platform in the MENA region (and Turkey) specializing in mobile loyalty. user a long-time user.” When asked of the app’s tipping points of success, the duo links it to the key partnerships they have formed with brands such as Dubai’s homegrown Taqado Mexican Kitchen, Media City’s popular café Urban Bistro and Noodle House to name a few, as well as early adopters Tips & Toes and Sumo Sushi, who are renewing contracts after a year. “We grow with them together,” says Toofani, and Matthews joins, “And we’re proud that they grow since it’s sort of a testament to their quality and our quality

as well.” The duo also remarks how starting in Dubai was an advantage, saying that the Middle East “looks up” to the UAE’s business hub and head offices of their partners’ regional companies are always located in the city too. “There’s a thousand mistakes we could’ve done and didn’t do,” says Toofani, crediting their lessons from working at previous startups and benefitting from mentorships. They try to give back too: “The startup scene is fairly small, but high quality. We try to help out,” adding

how they sponsor or participate in startup events such as the STEP conference. “Don’t be shy to tell people about your product. Feedback is key, whether from a competitor, consumer or investor. It doesn’t matter who it is, even if it’s somebody who doesn’t know the product. We have two customers: our customers and our customer’s consumer. We have to give them both what they want. You can only give them what they want if you understand what they want. Share your story and share your product to receive feedback.”

METHOD “Quick Response codes are the

easiest and most simple way of information transmission. They are directly bound to our back-end. There’s quite a bit of information in a QR code, and anybody who can see a QR code knows that, ‘Okay, this is something that I have to do with my phone’. In later stages, we’ll be moving to NFC and new technologies. But the QR code is the easiest at the moment.” FUNDING “We’re planning to raise [funding]

at the end of the year for regional expansion, to not only be in Dubai and Turkey, but also in Saudi, Qatar, Kuwait, Bahrain, maybe Jordan and Lebanon at the end of the year. But we also wanna be cash positive by then. The plan is to be able to cover ourselves and hit cash positivity, and then raise the bigger round for regional expansions.”

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MARKET PENETRATION “For now, other than Dubai, we have one in Abu Dhabi and two in Al Ain. These are all multi-stores that we signed up.” FOUNDER/CO-FOUNDER RELATIONSHIP “I was doing many

things at once. Now, I can spend time on doing things I want. We’re very complimentary to each other”, says Toofani, who leads the technical team, operations and runs the business side. Meanwhile, Matthews handles the marketing, PR, day-to-day operations and is “best at understanding things from user’s perspective. I’ll fight for the customers– our customers. I’ll still put the restaurant hat on or the user hat on, looking things from different angles,” says Matthews.

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SIGNIFICANT STARTUP SENSE AND SENSIBILITY Investing your money is necessary, but investing your time is absolutely essential By Simon Hudson

his month I have decided to take a break from my usual startup finance column and write about what it takes to raise over a US$1million in seed capital. The Wall Street Journal recently wrote an article about my company Brndstr, and our latest raise. For a startup that is just nine months old this has been a great achievement. Since the news broke I’ve been asked many times about how I was able to raise such a vast amount so soon, especially as a tech startup based in Dubai. So my fellow ‘treps, this month I am going to write a brief overview on what was needed to raise the funds, the time it took, and as always my personal advice gleaned from my own experiences along the way. ON THE CLOCK I’ve just finished reading Malcolm Gladwell’s hit book Outliers. For anyone who has yet to read this beast I suggest you put it on your to-do list. In it, Gladwell explains how the magical number of 10,000 hours

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is the time it takes for a person to notice a major pivot in their journey. Whether you are an athlete playing baseball, a designer or engineer building a product or a tech entrepreneur with a killer idea, 10,000 hours is the amount of time you need to make that major dent, according to Gladwell’s theory. Now this won’t be the case for many people, however if you break it down Gladwell isn’t too far off. In my case, since the age of 15 I was always crafting an idea, trying to start a business, and become the next Richard Branson. After reading this book I looked back and realized what I had actually be doing all my life was just dipping my toes in for the odd hour or 2. I never really gave it 100%, as always I needed that income so my focus was not all there. I have heard investors say that they need a 100% focus on an idea to consider putting the cash in, and I can see why. So looking back at my past 15 years of toe-dipping and brainstorming, I calculated my hours

to the time that I closed my latest round. I worked out for 15 years- on average I spent two hours per day, either researching or tweaking my ideas. Taking away 30 days a year for holidays and partying, I did the math: 2 hours X 335 days X 15 years = 10,050 hours. BOOM! So what I am saying here is that my $1.6m seed raise did not just take a month or even a year- I have been in training for most of my life. Taking the mistakes on board and learning along the way, I was able to achieve a major pivot in my career and successfully raise the seed capital I needed. STEPPING STONES So you have accumulated your hours and now you need something to show potential investors. What do you need? When people say to me now, I have an idea and need $100k- do you know anyone who might want to invest? In my first article I discussed that having a prototype is key. Without this concept and proof that what you are wanting to build will work, it’s hard to find someone who will truly get what you are doing, and who will believe in it. Also there needs to be evidence of financial commitment from your side. For myself, other than the lifetime of dedication and money spent on tweaking my skills, I also

invested through partners and personal savings over $120k into Brndstr before any seed funding was raised. Not only did this show that I was serious about taking my company forward, it also reduced the risk for our investors in turn giving them more confidence. WHODUNIT? One area I believe that often goes with little or no consideration is who you should consider a suitable partner. For myself and Brndstr not only raising the funds, but who to raise them from was a key factor. During our fund raise I met with over 20 potential investors, but none of them felt like they were right for our tech family. I believe that for a business to work and succeed, you need to have the right people on board. If I am to be honest, I’d say that this is the single most important aspect of raising your funds. There will come a time when you might panic raise and accept an offer just because it might seem correct- beware because it probably isn’t. As an entrepreneur looking to raise the big bucks I would summarize by saying see how many hours you’re up to, give your idea and your business your all, and finally, choose your partners wisely. Remember that the seed raise is only the start- when the money is in the bank, that’s when the hard work really starts. Good luck as always ‘treps, and have a fantastic summer. I’ll catch you next month! 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.

Whatever floats your... city

China considers joining the faux-island trend By Pamella de Leon

hina continues to face increasing urban populace issues. The country has tried coping tactics like micro-apartments and the controversial one-child policy, but still space for new buildings is shrinking, and their population just keeps growing. A new idea was recently tabled– a floating city. Designed by the AT Design Office and the China Communications Construction Company (CCCC), the floating city is proposed to be a 10-square kilometer island; the same kind of blocks used to build a bridge that connects Hong Kong, Macau and Zhuhai. Theoretically, the floating city will have the features of a regular metropolis, with work, housing, entertainment, and parks for residents. Some of the cooler elements put forward include underwater and above-water levels, as well as

being self-sufficient and the island rising and dropping in accordance with sea levels. According to Fast CoExist green spaces will be both above and below water with “vertical gardens” to link the two, to be used as docking stations for submarines to travel from “block to block” in the city. As for selfsufficiency, they’re proposing options of tidal energy and converted energy to generate power. The floating city will also have farms and hatcheries, and its own factory for locally-produced goods. A few pressing issues are being addressed: Will people actually want to live there and will the faux-island be able to withstand typhoons and hurricanes that frequent South East Asian seas? The new design is currently under review by a Chinese property investment firm, with its potential and feasibility being assessed. juLY 2014

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

Transformation Suwaidish station Technologies Emirati ‘trep Mubarak Al Suwaidi is determined to make a difference

ubarak Al Suwaidi wasn’t always an entrepreneur, the young tech-savvy founder of Suwaidish Technologies (ST) is actually an engineer with a higher diploma in Aircraft Engineering and various Aviation Engineering licenses, formerly employed by Emirates Airlines. Al Suwaidi started up his company due to a niche need he found in the market- he was running a home-based operation that sold traditional Emirati women’s fashions including Shailah using social media platforms like Twitter and Instagram, BBM, and a WordPress blog to encourage online clients. He decided on creating a portal to try his hand at e-commerce after having a physical store at Global Village between 2012 and 2013, and says that he encountered huge difficulties in the process including receiving online payment, and online shipping logistics. “Nowadays, many local entrepreneurs have found the obvious and extraordinary

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benefits of marketing and selling online. Most of us dream to own our own online store where we have full control over our businesses,” explains Al Suwaidi about what factors pushed him to initiate ST. The road wasn’t as smooth as one would hope, the ‘trep explains that he encountered three primary difficulties: “Finding local mentors for SaaS [Software as a Service] business, dealing-with and speaking-to decision makers, and finding affordable talent with the right skills to hire.” Thus far, he hasn’t been seeded and hopes to launch his startup publically in September of this year. “I’m seeking funds to fuel the project’s operations with employees and a marketing budget to speed up the process. I can’t measure the ROI without clear look on how much -and when- I will be funded.” With an investment of “around 500K from my personal savings up until now, I didn’t acquire personal loans for the business yet.” In addition to his financial

commitment, Al Suwaidi admits that he has little time for a social life, and daily dedicates “four to five hours during the week,” on top of his full-time job, and “weekends a minimum of six to ten hours. Add to that meetings, conference calls…” This Emirati’s goal? To see technology in general, and that of his startup, “reflect his visions and goals

‘TREP TALK Q+A SUWAIDISH TECHNOLOGIES HAS DEVELOPED THE SUWAIDISH BASKET, AN E-COMMERCE WEBSITE BUILDER. CAN YOU EXPLAIN THE FUNCTIONALITY?

Suwaidish Basket will be available as a mobile application or as a web-based application. Its functionality is to build and manage web-stores, e-commerce websites or dynamic websites. Suwaidish Basket is fundamentally targeting social media businesses, individual home businesses, micro, SMEs in the UAE and worldwide, to help them build their online presence more efficiently. That is through building their own gorgeous, simple web-store through our platform to display their products in an organized manner, and engage with their customers from their mobiles or tablets. Its innovative and productive approach could empower users to generate their own services, extract, and present data in a way that is designed to meet their individual requirements like choosing the Basket’s various ready themes, and build website templates depending on their style. Suwaidish Basket will allow the users to gain direct access to detailed analytical information about customer needs and wants through analytics tools. More importantly, Suwaidish Basket allows its users to accept orders in an efficient way and get paid online or by COD, and shipping with one simple button. This project is the start toward the e-commerce world that will be valued at US$15 billion by 2015! WHAT DO YOU THINK THE BIGGEST CHALLENGE FACING EMIRATI ENTREPRENEURS?

There are enough institutions for supporting the entrepreneurship in the country, but in my opinion most of these institutions

are not entrepreneuriallyeffective enough. I know there is much more that can be done to evaluate and improve ideas, and calculate risks more efficiently. The biggest challenges are that there are not enough UAE nationals acting as mentors, not enough banks that support entrepreneurship, a lack of digital knowledge centers that support the Arabic language, and also it’s hard to find affordable talent in the market to hire. I would desperately love to see more Emirati products like traditional clothing, traditional foods, Bukhoor, UAE brands like Feathers Fashion and Tamashee, traditional jewelers like Murta’asha and Murreya to knock international customers’ doors, and that can be done more efficiently through a website by using effective digital marketing and branding strategies. HOW DO YOU STAY MOTIVATED?

By passion mostly. To stay motivated I started to organize and systemize myself with many tools on my Apple devices. Each new day brings an opportunity to get things right- if I don’t take the

initiative to act, someone else will. I always keep to-do lists with me so that I can capture those late-night ideas, and act or study them instantly the next day. Besides, knowing the fact that my business idea will give back some value to my country and community motivates me a lot. I have always wanted to make a difference, and I see my business as catalyst to allow me to do that. WHAT PROCESS DID YOU GO THROUGH WITH TEJAR DUBAI?

Actually, I went to other major angel investor organizations here in UAE, but I was disappointed because they could not see the potentials of my project and how big of an impact it is going to have on the community and UAE’s economy. I can see lack of awareness in digital trends and where the rest of the world is heading, not just among Emirati entrepreneurs but among consultants and mentors at these local organizations, too. I was hoping they would embrace H.H. Sheikh Mohammed bin Rashid Al Maktoum’s visions more effectively to turn Dubai into Smart City, Smart Government, Smart-everything by using the foremost technologies. At last, I heard about Tejar

Dubai through one of my friends, Ahmed Harib, and I tried my luck there too. First they arranged a meeting and listened to my pitch. They liked my idea, Suwaidish Commerce Project, because I convinced them with facts and numbers from the first meeting. Then they wanted to make sure that I know what I’m doing after just two meetings. I explained to them that I’m capable and passionate about my idea, I’m fulfilling a needed demand in the community, and targeting a big number of customers by building a good business model and a new financial model! I attended a couple of workshops in finance and I thank Mr. Fadi El Ghattis with his mentorship services in finance, and he also helped me stress test my financial model.

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

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INVESTING YOUR OWN MONEY IN YOUR BUSINESS

INDUSTRY KNOW-HOW

SPONSORED BY CADILLAC IN THE SPIRIT OF LINKING SUCCESS WITH POTENTIAL

Don’t let outside investors think for a second that you’re unwilling to take on some financial risk By David Newton

s there a formula or some kind of rule of thumb by which business owners should abide in terms of their own personal investment into their company, relative to outside funds invested by others? The simple answer is that there is no basic measure for gauging an owner’s equity stake compared to investors’ equity in the firm. But there are two very important concepts about business financing that do apply to the general topic of owners’ equity. First, in virtually every funding deal that I’ve ever been involved in as a business partner, consultant, investor or advisor, the outside investors required that the founding team have a vested financial stake in the enterprise. The rationale is that the owners need to demonstrate a solid financial commitment to the business plan, and having their own money at riskalongside the outside capital providers- provides a tangible assurance to outside investors that the entrepreneur believes strongly in the merits of the company’s business model and strategy. I always tell my clients and students to think about this logically. Would you want to invest in a business knowing that the founding entrepreneur does 88

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not have any of his or her own money also invested? Of course not! When term sheet proposals are being circulated along with a company’s executive summary, investors always focus their initial attention on four major areas: 1. What is the product or service concept, and how is it differentiated from the competition? 2. How large is the potential market for this product or service? 3. Who on the management team will drive the business strategy forward? 4. What do the business model and the financial structure look like? This fourth area examines the way the company makes money, as well as the debt-equity arrangement that capitalizes the assets that will be employed to achieve success with that model. When outside investors see that the company founders have already invested significant time into the business, that’s well-received. But sweat-equity alone is not enough to persuade investors to fund the deal. In addition to plenty of hours invested working in the business, the

owners must also be equity investors with money at riskotherwise, capital providers view the level of commitment as being less than desirable. The second important concept is the form of the founders’ capital commitment to the company. Some entrepreneurs will provide a loan to their new venture, and it may even be secured by fixed assets purchased with those funds. This is less positive than if the founding team has stock in the firm. The time frame for the com-

pany to pay off a loan can also be a concern to outside investors. If the owners have a provision to pay themselves back within a year or 18 months, the priority of payment sends a signal to outside capital providers that the owners want to be sure to cover their own personal financial positions first, and this can cause concern. Outside investors would much rather see the owners in a side-by-side position with them, where everyone has an equity stake and no one is getting priority of payments

| IN THE LOOP |

from operating cash flow. In summary, equity stakes for the founders always look better than short-term and/or secured loans to the company. When outside investors do co-invest with the entrepreneur, the deal will go much more smoothly if owners and founders are equity investors and they’re both in the same class of securities. For example, outside capital providers will frown on the situation where the founders have preferred stock, while investors have lower-priority common stock. The best way to put these two concepts together is to understand the perceived risk of the venture. Investors will always look for ways to mitigate certain risk exposure in order to reduce the potential for capital loss. Some companies pursue financing strategies that are entirely based on using “other people’s money” to grow the firm. That makes sense when additional funds needed for expansion come in from outside investors, as long as those are in addition to the founders’ initial capital invested. But when working with outside funding sources, be sure they understand clearly your commitment to the venture -and the reduced risk perception- by bearing some of the company risks through your own equity investment. There are so many other line items to be negotiated in doing a funding deal that the question of an owner’s equity participation should not be one of them.

LOCK ME UP AND THROW AWAY THE KEY GISEC 2014 I.T. Security Awards

Gulf Information Security Expo & Conference (GISEC 2014) staged MENA’s first I.T. Security Awards early last month, presenting I.T. experts from the region recognizing “excellence in information security”, organized by the Dubai World Trade Centre. Nearly 40 nominees competed in the area of cybersecurity across five categories at the trade-only event: Best Endpoint & Mobile Device Security Implementation, Best Security Information and Event Management

(SIEM), Best Information Security Program Implementation, Best Data Loss Prevention, and Best Cloud Security Implementation. The winners by order of category were the UAE Ministry of Environment & Water, UAE telco du, the Roads and Transport Authority (RTA), Bahrain’s Gulf Air, and finally, the General Civil Aviation Authority. The five points of judging criteria included improving performance and efficiency, cost reduction, and data security enhancement.

Mikko Hypponen, Chief Research Officer of F-Secure at GISEC 2014

du winner (left) with Dubai World Trade Centre representative

Robert Bigman. former CISO at Central Intelligence Agency at GISEC 2014

See this article in its entirety at Entrepreneur.com

David Newton is a professor of entrepreneurial finance and head of the entrepreneurship program, which he founded in 1990, at Westmont College in Santa Barbara, California. The author of four books on both entrepreneurship and finance investments, David was formerly a contributing editor on growth capital for Industry Week Growing Companies magazine and has contributed to such publications as Entrepreneur, Your Money, Success, Red Herring, Business Week, Inc., and Solutions. juLY 2014

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The goal state

Hadafi rewards female â&#x20AC;&#x2DC;treps across the Middle East | IN PICTURES |

adafi, a Massive Open Online Course (MOOC) part of Potential.com, in partnership with Dell, Intel Corporation, Zain KSA, and Harvey Nichols KSA, awarded three winners a total of $U50,000 in support of female Arab entrepreneurship. Ten finalists were shortlisted from over 1000 entries from six MENA region nations. The three winners, respectively from Taif and Riyadh in Saudi Arabia, and Amman, Jordan, were competing with women from Qatar, UAE, Tunisia, and Palestine. Nour Al Harithy took first place with her online marketplace for products made with

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Saudi Arabian Taif roses, runner up Mariam Al Mutairi won for her platform for online event management called IVant, and third place winner, Jordanian-based Qamar Al Tarawneh, is the inventor of a glove made for facilitating hearingimpaired communication for those with no prior familiarity with sign language, called Abjad. Hadafi is a free-of-charge program centered around supporting women in entrepreneurial and business endeavors. The third rollout of Hadafi will be launched October 2014 and is open to all MENA region women. www.english.hadafi.me

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