Entrepreneur Middle East October 2014 | The GCC and the Family Firm by Entrepreneur Middle East

Bootstrapping your startup How to operate on a shoestring budget

Innovation, disruption and growth in the Arab world

Fadi Ghandour Keep it in the family

The GCC and the family firm

Succession motivation and considering corporate structure strategies for

clan businesses

Fawaz AlOtaibi | Dalal Alrubaishi | Mohamed Batterjee

Fine-tuning technique and delivery

Carol Matta The five “knows” to public relations prowess

staying horizontal Four marketing methods that you can no longer ignore

Now is the right time to invest in MENA’s tech scene The MBA debate Hassan Al Hazeem

The crossroads of higher learning and business

Branded mobile apps in the Middle East

Fadi Sabbagha

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

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CONTENTS

Cloud-powered Google Chromebooks virtual desktops

Keep it in the family

INNOVATOR

MOBILE TECH

The GCC and the family firm Succession, motivation, and considering corporate structure strategies for clan businesses > Fawaz Alotaibi > Dalal Alrubaishi > Mohamed Batterjee

There’s no time like the present Fadi Ghandour sees the Arab world positioning itself as a hub for innovation, disruption and growth. Now is the right time to invest in MENA’s tech scene, and here’s why.

TECH: SHINY

App-tastic brands? The rise, evolution and the future of branded mobile application marketing in MENA analyzed for you by Born Interactive CEO Fadi Sabbagha.

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

38 WEBSITE TO WATCH

26 Fadi Ghandour says the time to invest

Flat6Labs website

in MENA’s tech space is now

Maximizing Mini Exchange UAE-based entrepreneur Sarah Appleton developed her own Middle East e-commerce portal, and she’s gone on to get the recognition she deserves. 36 BlackBerry Passport reignites tech flame

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14 EDITOR’S NOTE By Fida Z. Chaaban

34 ‘TREPONOMICS: SKILLSET

The MBA debate Managing Director and CEO Hassan Al Hazeem of Intercoil International poses the question, “Is management savvy impacted by executive education?”

44 ETHICS

Going green in the workplace Bayt.com’s research indicates that the bottom line isn’t just about saving money- simple steps can make all the cost (and care) difference contributed by VP Suhail Al-Masri.

48 The Esquire Guy on why you have to stop using your phone during meetings

48 ESQUIRE GUY

Drop the device! Ross McCammon on why you have to stop using your phone during meetings- yes, you really, really, really have to stop. Jokes aside, it does affect how we socialize in business.

60 MARKETING

It’s all about staying horizontal If you aren’t already

taking action on these four marketing methods, you’re a decade behind everybody else.

68 SKILLSET

Five “knows” to public relations prowess Carol Matta discusses her top five tips that she believes played a huge role in achieving the desired outcome for the corporations and figures that she’s serviced in the PR industry.

68 Five “knows” to public relations prowess

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64 The ties that bind: PR-media relationships

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CULTURE: DESIGN

TRAPPINGS

Q+A

‘Trep gear Christian Louboutin helps you dress for success, and Etro has us all tied up with the AW14/15 range.

Goal-oriented ‘treps This startup duo is more passionate ever about their social networking tool, and they say Linkagoal just what entrepreneurs and aspiring industry leaders need to achieve their goals.

Flexing some muscle Emirati ‘trep Yousuf Al Gurg talks about getting his fitness startup off of the ground, and what sort of help Tejar Dubai can give you.

Making it new again Princess Noura Bint Saud AlSaud wants you to repurpose, reclaim and reconsider. She’s just launched Riyadh’s Rukun Gallery as KSA’s newest art and design destination.

58 LIFE

Business book rundown Amal Chaaban reviews a few business books for you before you hit the bestseller aisle. It’s true that not all executive material is created equally.

Egypt’s PieRide wants to give you a lift

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74 START IT UP: WACKY IDEA

Founder Tarek Koudsi is fluent in webspeak Jordanian startup Hashdoc could be your company’s digital resources hub. It’s an open knowledge database that players in the business field need to check out.

80 WACKY IDEA

Sharing is caring Egypt’s PieRide wants to reduce traffic by sharing a ride in any of their vehicles with crowdsourced, trained drivers.

84 MONEY: STARTUP FINANCE

Bootstrapping startups in Dubai Melltoo is living the startup life, and that means sharing tips on making dirhams, dollars and sense count.

seabury report

THE NEW GATEWAY TO THE GULF

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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 CONTRIBUTING WRITERS Sarah Appleton Mohamed Batterjee Amal Chaaban Youmna Chagoury Kareem Chehayeb Tamara Clarke James Clear Fadi Ghandour

Hassan Al Hazeem Simon Hudson Maria Elena Kassab Sharene Lee Pamella de Leon Suhail Al-Masri Carol Matta Ross McCammon

Shoug Al Nafisi Dalal Alrubaishi Octavia Nasr Rani Nasr May Rostom Erika Widen

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

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

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FEEDBACK

Business efficacy... in real-time

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

Welcome to the fold! BNC Publishing launches Hotel News ME For hospitality industry professionals, BNC Publishing has released their inaugural issue of Hotel News ME. The new monthly publication’s first issue was timed for launch during the Hotel Show in Dubai, UAE. They’ve gone social so join them online! HotelNewsMME

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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

“Hey, can you do me a favor?” Apply reciprocity as a constant, not an anomaly

think it’s important to talk about the relationships businesspeople maintain, and the underlying culture of favors that permeates those same relationships. We all ask for favors, and if you haven’t yet had to cross that bridge, you will at some point or another throughout your uphill enterprise trek. I know I have. But when you’re gearing up to ask someone for a favor, have you thought about whether or not you’re really in the position to do so? What are the prerequisites that you need under your belt to be able to request a business favor from an associate? I would say that the formula is an easy one to adopt. I applied this “mantra” to my own professional and personal conduct years ago, and it has paid for itself in spades. I am a big believer in what I like to call “Internet karma”, and this all ties into the culture of favors at work in business globally. Before you approach a business associate for a “little” favor, you need to ask yourself the following questions. Be honest, now. 1) Have you at some point supported this person in a business capacity? 2) Have you, of your own accord, made the initiative to demonstrate care for that person’s professional growth?

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3) Can you honestly say that you promoted this person’s business agenda, and made a positive impact on their business (however small)? Answering affirmative to those three questions means that you are well-positioned to ask for a favoreven a big favor. This favor could be a recommendation, an introduction to a key person, or even an opinion on your 2015 marketing strategy. You’ve given of your time or of your resources (or both) to help out this associate in the past, and the next time you’re looking for an endorsement or a boost on your new digi campaign, you can bet they’ll be on board no questions asked. If you haven’t taken the initiative to help out in the past, why would you think that asking for something is a good idea? This is when my theory about Internet karma enters the equation. I’m active on a few different digital mediums, and I often use my personal account to promote other people’s events and work (blog posts, videos, and campaigns included), and even gather information when it is needed by people I know. Because of that, I have great Internet karma. When I need a retweet or help promoting something, I’ve got tons of tweeps that are happy to do so of their own free willit’s the beauty of reciprocity.

Do I mind when people ask me for favors? Not if they’ve made a genuine effort to support my current or previous initiatives. The flip side of this is that asking me to promote your event or facilitate an intro probably won’t go over very well if you’ve never expressed any interest in my endeavors. I think I’m like most professionals in this regard. Using your skillset and influence to spread around success is great for your business (and Internet) karma. Give it a try.

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

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KEEP IT IN the family The GCC and the family firm

SUCCESSION, MOTIVATION, and considering corporate structure strategies for

clan businesses

Fawaz AlOtaibi | Dalal Alrubaishi | Mohamed Batterjee

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OCTOBER 2014

Built to last Developing the GCC holding company Fawaz AlOtaibi on restructuring the family business By Fida Chaaban

AWAB HOLDINGS WEBSITE

“

here’s a reason why larger firms tend to adopt corporate structures: it accelerates growth, which is something every generation in a family business should strive for if they want the business to continue,” explains Fawaz Moeid Sadoon AlOtaibi, CEO Awab Holdings. AlOtaibi joined the family business Fawaz AlOtaibi in 2009, directly after completing his Engineering degree at Carleton University in Ottawa, Canada. He returned to Saudi Arabia and quickly took over the family firm. “I didn’t have the chance to work elsewhere because my father wanted to retire, and so he did. I had his full support in running the business, but I didn’t know how! Nevertheless, being an engineer I was trained to solve problems, so I started self-learning the business by reading numbers, asking for reports from management, and observing. Thinking back to that time, I wish I had a mentor. I started a three-year project and failed, and I vowed to never venture into a project or investment without a proper study beforehand. I took what I learned from my failure and realized that I needed a vehicle to be able to manage multiple companies efficiently, so we created the holdings company.” Awab Holdings, then Awab Trading Establishment, was launched in 1977 as a general trading and contracting company. The company transitioned in 2010, becoming purely a holdings company acting as an umbrella owner of several businesses across a diverse

list of industries including automotives, healthcare, information technology, and real estate. “My father was not born into wealth, and from a very early age he had to work along with his siblings to provide for the family, but he also realized the importance of an education so he completed his secondary education. My uncle had a talent for fixing cars, and my father used to help him with the finances. In 1965 they decided to create a company called Takwa, today one of the largest auto spare parts dealers in Saudi Arabia.” A few of the Awab Holdings companies include their real estate development arms like Ousatco in Lebanon and namesake Awab operating in the Kingdom, their company Cepco Medical Services specializing in hospital

preparation, Jubail Motors Company and Takwa Group for automotive spare parts, and Codeit, an IT-consultancy and application company. Each of the aforementioned companies are managed by professionals, and have Awab Holdings as a board member. The holdings group also has a portfolio of investments managed by investment firms on behalf of Awab. Moeid Sadoon AlOtaibi, Fawaz’s father and Founder of Awab, now acts as

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Chairman of the Board at 76 years of age. Why was a holding company needed for their family business? AlOtaibi says that while it’s also about preservation of the existing business and legacy, it was mostly motivated by potential success and growth- part of a larger strategy of incorporating tactics that are a part of laying the foundations for future expansion. When discussing introducing measures that impose organizational order, 29 year-old AlOtaibi points out that family firms often lack the structure and the hierarchy of non-family enterprises, so a corporate outlook is needed. “Corporates introduce aggressive accountability which is sometimes lacking in a family firm. Today as family members working in the firm, we all have responsibilities and are held accountable for them- meaning a family member is also at risk of losing his or her position if he or she does not deliver, just as much as he or she stands to reap the rewards of that position.” The AlOtaibi family, led by Moeid, went about creating their holdings group. The senior AlOtaibi transferred all of his equity to the holdings company, giving his children their shares in accordance to Sharia (Islamic law),

“leaving him owning practically nothing. Some considered it a bold move, yet –as most bold moves do- it turned out to be a great move. With equity comes responsibility, and my siblings and I started acting much more responsible after that. In the GCC, the founder is usually the patriarch of the family, and we are blessed that our father is still with us as he always has the final say if any dispute arises. There should always be a patriarch who would hold a certain authority so not to have disputes turn into power struggles or internal conflicts. So although today my father is not involved in the business decisions, he still holds the chairman position and we must seek his approval before venturing into some-

“Each company should have its own management structure and freedom to create new strategies. The holdings should only appoint, monitor and support each company’s management board. The only disadvantage is that the subsidiaries might lose the family feel and atmosphere present at the holdings level”

thing new.” On the topic of succession, AlOtaibi discusses the danger it can pose to a family firm that is unprepared for the transition of power. “Inheritance is a course of life, and Islam has given us a creed of how to go about inheritance. Unfortunately, more often than not in a family business, inheritance leads to the collapse of the business as it is hard to divide a non-monetized entity without dissolving it, and in the absence of the family patriarch it might also lead to the breakdown of a family.” Fawaz says that a “family constitution” is needed, that all founding members agree with and can adhere to, helping to prevent the damage that an irresponsible or disenchanted family member can cause to the business. AlOtaibi frankly comments that he’s thankful that he has not yet had to experience that particular challenge. One challenge he has fielded since he became CEO? “Resistance, resistance, resistance. If you are someone thinking of going through this process, expect a lot of resistance from the existing employees- especially the previous generation’s ‘team’. You will not be able to fire people on the spot because of their history with your father, uncle or whomever, regardless of how incompetent they might be, and you’ll realize that sometimes you don’t have the final say in the company you’re heading. But that’s okay! Create your own team, be much more efficient, and write-off those costs by creating more growth. Also, the process is a lengthy one that will take years to finish, so don’t expect instant results.” High prevalence of the family business model across the GCC makes it a hot topic of discussion. Deeply ingrained in the enterprise culture of the Gulf, family businesses and their success or potential failure has far-reaching economic implications. The SME space, heavily permeated by the family business model, stands to gain when clans do well, and stands to take a serious hit when they don’t. “Family businesses contribute to approximately 80 to 85% of the global GDP, and in the GCC they are the top non-oil, nongovernment contributor to the GDP. That is why maintaining and “expect a lot of resistance from the existing employees- especially the previous generation’s ‘team’. You will not be able to fire people on the spot because of their history with your father, uncle or whomever, regardless of how incompetent they might be”

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“Family businesses contribute to approximately 80 to 85% of the global GDP, and in the GCC they are the top non-oil, nongovernment contributor to the GDP. That is why maintaining and ensuring the succession of family business is a national matter” ensuring the succession of family business is a national matter, not only a private matter.” A Saudi Arabian national, AlOtaibi says that his contemporaries in the Kingdom are talking more and more about the family business model. Between him and his friends, re-structuring techniques and other family firm corporate introductions are a constant topic of discourse. “Saudi Arabia has a relatively young economy, and many family businesses are today making the transition to the second generation. Add to that masses of the new generation -my generation- that have been educated abroad, and are now coming back to join the family business. They’re eager to put their mark on the history of their companies,” he says. He is a big proponent of the family firm going corporate, and instilling some procedural layers in the areas of human resources mentioning “employee retention strategies, career paths, clear responsibilities, and job security,” as a few examples. “Creating a holdings company is just a vehicle that would make managing different companies across several industries more efficient. Each company should have its own management structure and freedom to create new strategies. The holdings should only appoint, monitor and support each company’s management board. The only disadvantage is that the subsidiaries might lose the family feel and atmosphere present at the holdings level.” While AlOtaibi is a champion of the corporatization of the family business, he still has strong attachments to some of the more traditional aspects- like family values. “I believe that families should start structuring their businesses as corporates, yet still keep the family values they would always live by and keep- sort of a family corporate which is kind of an oxymoron.” AlOtaibi says that a benefit of transitioning is that his family has been brought closer, family members that are employed by the business feel a strong sense of

Awab Holdings explainer video

support, and that the overall morale in the company has improved noticeably. Awab Holdings has put a series of checks and balances into place with stipulations, keeping the shareholders satisfied with the company’s direction. “In our model, we segregate equity from management. Some equity owners manage, but not all do. We have an owner’s board which convenes once a year to discuss how the business is doing, and convenes regularly for family matters. Then there’s a management board which convenes quarterly to discuss with the CEO detailed matters of the business, and to make sure the plan is adhered to.” AlOtaibi adds that family members must be voted into a company station, and that once they’re voted-in they hold the position for five years. To continue to hold that same position, they must be re-elected, and cannot spend more than two terms –a total of 10 years- in the same position for several reasons: to bring fresh ideas and innovation to the post, to ensure equality of family members and equal opportunities, and finally, to prevent internal power struggles. What about shareholders? “Shareholders usually complain when the business suffers, so the best way to avoid shareholder concerns and complaints is by creating growth and profits. Easier said than done, I know,” admits AlOtaibi indicating that they have seen a considerable rise in profitability, and it’s largely because some of the businesses under the umbrella were under-performing prior to the transition. There’s also a bonus for family members with an entrepreneurial eye who aren’t employed by the company: “We have a structure that helps retain non-involved family members with entrepreneurship spirits by introducing a ‘sweat fee’. The family entrepreneur presents his ideas to the management

board and if approved, the holdings will fully finance the idea, and the family entrepreneur will receive 25% equity in the new company and manage it on his own for five years.” So if you aren’t already part and parcel of the family and the family business, you can pursue your own entrepreneurial venture and still have both the financial and systematic support of the family behind you. “Being an entrepreneur means being flexible and always wanting to challenge the status quo whether it’s in your business, community or even culture. That’s why it’s absolutely important to keep that flexibility and realize that no business structure is set in stone. My model was really a collection of more than one business structure that I have come across, and will keep on changing throughout the years. It’s also important to know that there’s no prêt-à-porter solution in business models, and what might work for my family might not work for another. Also, what might work for my family today might not work five or 10 years down the road, but we do our best given the circumstances we are in and we try to predict any changes that might happen in the future and place the solutions today.” Above all, AlOtaibi is most keen on preserving his father’s legacy and the solvency of the family business. His shifting schema centers around a formula built to last, and it rests on the foundations of family values blended with a corporate-type democratic fairness and approach. AlOtaibi is big on unity: “I always say to my siblings, ‘It takes the whole family to build the business, and it takes one family member to bring it down.’” His careful planning, research and measured action should prevent anything of the sort for Awab Holdings, and hopefully take their business into a third generation.

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KEEP IT IN the family The GCC and the family firm

sustainability and professionalism, corporate governance codes and principles are usually not compulsory for these forms of organizations as they are for large companies listed on the stock market. Family SMEs therefore rarely adopt governance practices, and even if they do, emotions can influence strategic decision-making and especially succession. After all, a family is a social unit where family members share feelings resulting from their history and shared memories. Rome wasnâ&#x20AC;&#x2122;t built in a day The succession process

Passing the torch Succession planning for the family business By Dalal Alrubaishi

amily businesses are the backbone of economies around the world, constituting a crucial source of wealth and employment in both developed and developing countries. In the U.S., around 70% of all organizations and a third of companies listed in the Standard & Poorâ&#x20AC;&#x2122;s 500 (S&P 500) are family businesses. They occupy an even more important position in the Middle East, where the PwC Global Family Business Survey (2012) found that more than 80% of businesses are either run or controlled by families. This percentage is even greater in Saudi Arabia, where 95% of all companies are family run,

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contributing approximately 50% of non-oil GDP and providing employment for 80% of total private sector employees (National Centre for Family Business, Council of Saudi Chambers). The majority of these companies are SMEs, supporting the Saudi push to move from an oil-based economy. Despite their importance to KSAâ&#x20AC;&#x2122;s national economy, however, many studies from around the world show that very few family businesses survive beyond the third generation, a fact that is also true in Saudi Arabia. Due to their nature, family owned businesses face many more challenges than their

counterparts. While succession is challenging for all businesses, this issue often becomes even more complicated when family relationships must also be considered. This overlap between two assumingly separate systems, the business and the family, creates many obstacles to the management, growth, and sustainability of these kinds of companies. Blurred boundaries between ownership and management often leading to conflicts in family business and jeopardizing their survival. While adopting sound governance practices can provide a valuable framework for family firms to address issues of

Succession is a lengthy process that should not be left to chance. Family businesses therefore need to regard succession as an extended process of at least three years, with the roles and responsibilities of the predecessor and successor varying before, during, and after the succession. Before the succession takes place, the predecessor mentors their chosen successor, closely nurturing their knowledge about all aspects of the business. During the succession the predecessor should begin to delegate increasing levels of responsibility, particularly decision-making power, to their successor. Finally, the predecessor will retire after succession, leaving the business completely in the hands of their successor. For this whole process to go smoothly, however, certain individual attributes of family members and interpersonal relationships within the family are important. Before the succession takes place, the predecessor mentors their chosen successor, closely nurturing their knowledge about all aspects of the business. During the succession the predecessor should begin to delegate increasing levels of responsibility

Attachment issues Predecessor attributes

Reluctance to let go is one of the most important factors in the failure of succession in family businesses. Leaders are often unwilling to plan for succession for reasons including an emotional attachment to the business, their fear of retirement, loss of status, lack of power, or even a lack of diversions outside work. This attachment to the business leads many family business leaders to occupy a leadership or consultant position, even after retirement. While their experience can be invaluable to the business, this continued presence can be perceived as a lack of trust in the competencies of their successor. This can adversely affect the decision-making process and loyalty of employees, leading to frustration from the side of the successor as they live the shadow of the previous leader. This inability to transfer power can be described as an addiction with all the negative consequences that this term suggests. Taking over Successor Attributes

The willingness of a successor to take over is also crucially important in family business succession. In fact, the willingness of the successor is sometimes the initiation of succession in family businesses. Studies show that the established leadership of family firms perceive commitment to the business as being the most desired attribute in their future successor. Commitment was ranked even higher than their competencies, indicating the perceived importance of the motivation to take over and lead the business in the future. The human and social capital of the successor is also crucial. Formal education, experience outside and inside the family business are all widely recognized as

Studies show that the established leadership of family firms perceive commitment to the business as being the most desired attribute in their future successor. being extremely important parts of succession development plans. However, in many cases mentoring by the incumbent is the most effective way to build both the human and social capital of the successor. This provides successors with first-hand experience of all aspects of the company, allowing them to adapt to the organizational culture, as well as to build relationships with important stakeholders. The ties that bind Predecessor-successor relationship

Generational gap and personality differences are the most prevalent reasons for disagreements to arise between the current leader and their chosen successor. Avoiding this requires family businesses to adopt a culture of trust and mutual respect, supported by open communication. Fostering a relationship based on trust and understanding is necessary for an effective transfer of knowledge and social capital, thus ensures the continuation of the business. Lack of trust from the predecessor can profoundly affect the successor’s development process, while a lack of communication often results in a frustrated, uncreative or even rebellious successor. Both ways, it will restrain a successful succession. Trusting the ability of one’s chosen heir reflects positively on their satisfaction, which generally translates into greater productivity and achievement. Open communication helps to prevent misperception, and results in clear intentions and expectations.

It takes a village Family relationship

Nepotism and sibling rivalry is a commonly observed factor in failed succession. This underlines the importance of a shared vision among family members, helping to keep the family united once the established leader steps down. Avoiding conflict between family members requires clear distribution of shares, roles, and authorities, as well as the decision to base compensation on experience and competencies. Emphasizing family values, loyalty, and traditions can also play an important role in achieving a harmonious atmosphere and shared vision in family firms, all of which supports smooth succession. Handing over a business to the next generation is a real challenge to family businesses. However, a gradual and steady transfer of the management and ownership to the next generation keeps a business alive. This can be

achieved by families working on their internal relationships to foster trust, open communication, and mutual understanding between family members. Poor senior management succession planning is one of the reasons that many family businesses disappear before they reach their third generation. At the end, having strong and solid family ties can help facilitate a smooth intergenerational transfer of wealth and reduce conflicts within families.

Dalal Alrubaishi is a lecturer at Princess Nora University. After earning her MBA she lectured in several Riyadh universities on Strategic Management. Currently on a scholarship to complete her PhD in the U.K. from Royal Holloway, University of London, Alrubaishi is also a founding member of CellA, The Saudi Professional Women’s Network. CellA is a non-profit initiative in the Kingdom of Saudi Arabia targeting professional women’s empowerment and mutual support through a combination of services, activities, professional programs, and networking.

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KEEP IT IN the family The GCC and the family firm

What makes the family-firm tick? A discussion on motivation

Five research-based decision drivers

By Mohamed Batterjee

any articles and conferences about family business talks about succession and conflicts without addressing the basics of why it is that we study family firms. What are the fundamental differences that set family firms apart from non-family firms? Researchers have been studying these differences for decades to lay the foundations of the family business as an academic discipline, but practitioners and consultants have yet to successfully extract basic differences, and determine knowledge-based implications based on these differences. Traditionally, researchers suggested that family businesses differed from non-family business due to the continuous interaction between the family aspect and the business aspect. The concept has since developed, addressing the many types of family business, and in the process demonstrated that the influence of the family varies from one business to another. While practitioners and consultants were only focused on the pitfalls of family businesses, researchers have proven that in many cases family firms outperform their non-family counterparts. Subsequently, attempts were made to dig deeper and find the underlying drivers as to why family firms performed better in these particular cases. Family firms and non-family firms were revealed to operate differently (and perform better) in some scenarios because of a shared dual goal-state: both financial and non-financial goals were found to be in alignment. Through research, it was also shown that these non-financial goals -also referred to as socio-emotional wealth (SEW)- rank higher in importance to family firms than financial goals. Pursuing socio-emotional wealth is unique to family firms, and it encourages them to achieve higher financial gains over the long-term. Can SEW be defined? FIBER is an acronym

Researchers suggested that family businesses differed from non-family business due to the continuous interaction between the family aspect and the business aspect. The concept has since developed, addressing the many types of family business

used to describe the five elements that combine to make socio-emotional wealth. These elements rein supreme to family firms, overshadowing the financial aspects: Family Control, Identification, Binding Social Ties, Emotional Attachment, and Renewal of the Family Bond. Family firms often make decisions that aren’t sound economically (from a financial perspective), but they are considered high utility maximizers to the family firm’s SEW. Understanding FIBER The five factors of socioemotional wealth 1. Family Control

Families make decisions to reject acquisition offers, eschew employment of non-family upper management, going public, and becoming a part of larger cooperatives. While the decisions don’t necessarily appear correct from a profit-driven perspective, they opt to reject these offers all the same. This is most often done in order to maintain family control of the enterprise. 2. Identification

As many family firms bear the name of the family or are heavily associated with the family, these firms often decide key matters from a viewpoint that is rooted in protecting their legacy. Identification with the family firm colors these choices, rather than pure financial performance. 3. Binding Social Ties

As families have relationships within society –commonly found in the GCC family firmsmany judgments are made to continue to frequent local suppliers or partners even if lower cost alternatives can be found elsewhere. These judgment calls are also influenced by the local environment, and a family firm’s desire to support and keep small businesses operating, as they are all part of one shared community.

4. Emotional Attachment

Many decisions within family firms are based on emotional attachment between the relevant family members. It may be the case that a course of action is pursued to satisfy the requests of one family member, while in other scenarios decisions are avoided or stalled to protect family members. 5. Renewal of the Family Bond

The renewal of family bonds to the firm through dynastic succession is of paramount importance. The succession process and passing the business from one generation to another is part of family firm tradition. Families habitually avoid deciding to sell often because of this bond, and in order to keep the business as a source of income, employment, and power for future generations of the clan. These five factors, part of the family firm pursuit of SEW, increases both the sense of family member belonging and their stewardship-like behavior towards the firm. It’s worth mentioning that SEW also emphasizes the long-term view over short-term gain, and the patient capital of family firms. The very same drivers of SEW also contribute to develop the mesh-style relationship between family firms and the communities around them, while simultaneously contributing to improving the overall brand of family businesses.

Mohamed Batterjee is the Vice President of Investment and Development of Batterjee Holding. Currently a doctoral candidate, he is a keen researcher in entrepreneurship and family business. After gaining experience in Saudi Aramco, Batterjee joined the family group handling different operations, corporate restructuring, managing family issues, and businesses development.

Sources Socioemotional Wealth and Proactive Stakeholder Engagement: Why Family-Controlled Firms Care More About Their Stakeholders. Journal of Entrepreneurship Theory and Practice Special Issue on Family Business | Volume 36, Issue 6, pages 1153–1173, November 2012 Cennamo C et. al http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6520.2012.00543.x/full Family Involvement, Family Influence, and Family-Centered Non-Economic Goals in Small Firms, Journal of Entrepreneurship Theory and Practice | Volume 36, Issue 2, pages 267–293, March 2012 Chrisman J. et.al http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6520.2010.00407.x/abstract Socioemotional Wealth and Business Risks in Family-Controlled Firms: Evidence from Spanish Olive Oil Mills, Administrative Science Quarterly | Volume 52, pages 106-137, March 2007 Gomez-Mejia L et. al http://asq.sagepub.com/content/52/1/106.abstract Socioemotional Wealth in Family Firms: Theoretical Dimensions, Assessment, Approaches and Agenda for Future Research, Family Business Review, February 2012 Berrone P et. al http://fbr.sagepub.com/content/early/2012/02/03/0894486511435355#cited-by 24

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THE ARAB WORLD as a hub for innovation, disruption and growth

Now is the right time to invest in MENAâ&#x20AC;&#x2122;s tech scene By Fadi Ghandour

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OCTOBER 2014

way from the screaming headlines about gloom and doom in the Arab world is the rarely told story of a trend whose promise is nothing short of transformative. The rise of the digital economy has, for the first time in decades, turned the region into the site of a remarkable market opportunity that, if tapped, would take it on an entirely new economic trajectory. With a collective GDP of US$2.85 trillion, the Arab world ranks among the top ten largest economies; larger than that of India, Russia or Brazil. More than half of the 369 million strong population are under the age of 25, and the burgeoning middle class is young, educated and globally connected. Tellingly, over the past few years the levels of connectivity have been increasing drastically. Between 2007 and 2012, internet penetration jumped 294%, while mobile data traffic grew 107% in 2013, compared to 86% in Asia Pacific, 77% in North America and 57% in Western Europe1. Moreover, the recent roll-out of low-cost affordable smartphones in

Commonly referred to as the Middle East’s Amazon, Souq.com, founded in 2005, raised a total of $150 million in financing, with the latest round valuing the company at over $500 million.

Flat6Labs website

Ronaldo Mouchawar, CEO and Co-founder of Souq.com

emerging economies is sure to accelerate broadband penetration. Soon, social and mobile technologies will be within everyone’s reach. Through ever higher connectivity, entrepreneurial activity and easy access to technologies that are lowering the costs and barriers to starting a business, the Arab world is positioning itself as a hub for innovation, disruption and growth. In fact, entrepreneurial vigor is already palpable across various Arab cities, from Cairo to Amman, Dubai to Jeddah to even war-torn Gaza. Startup investments have actually tripled between 2009 and 2012 2. In co-working spaces, accelerators and university halls, there is a new breed of tech-savvy entrepreneurs who are building products and technologies that are catching up with global trends (digital content and e-commerce) or solving big problems (e-payments, ed-tech, health and green energy). PayFort and Telr are tackling head-on inefficient online payment systems to boost e-commerce, while Nefham, Edraak, Tahrir Academy and SkillAcademy are using the power of technology and MOOCs to make online education more accessible to Arab youth. Startups are not just disrupting the education and payment sectors, but also a whole range of markets, from real estate (AqarMap and Property Finder) to food delivery (Foodonclick and . to digital and social iFoodijo) media marketing (The Online Project) to online recruitment and job placements, (Akhtaboot and Bayt.com) to . big data, (Eqlimicom). One of the most interesting is Jamalon, a Jordanian startup that is set to disrupt the archaic Arab book distribution industry.

1 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013–2018 2 According to a survey conducted by Wamda Research Lab, of over 200 companies that have received equity investment in MENA, the number of reported investments tripled from 2009 and 2012. For more information, see The Next Step: Breaking Barriers to Scale for MENA’s Entrepreneurs, March 2014

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Digital Arabic content is actually one of the new economy’s most high-performing industries. One study mentions that today’s market size is in billions 3. Saudi Arabia ranks at number one globally in YouTube views per capita. UTURN, a Saudi startup that produces local, high quality online entertainment, has 286 million views so far. Similarly, Jordan-based creative company Kharabeesh has garnered, to date, around 365 million views and more than three million subscribers. In fact, digital Arabic

digital Arabic content has always been a fertile field for local startups. It is where the real potential of the tech scene first proved itself with the rise and eventual sale of Maktoob to Yahoo! in 2009.

content has always been a fertile field for local startups. It is where the real potential of the tech scene first proved itself with the rise and eventual sale of Maktoob to Yahoo! in 2009. After the acquisition, Maktoob’s founders created several new companies including Souq.com, now under Jabbar Internet Group. Maktoob is the story of one successful exit, that helped kick off e-commerce, which today is the region’s fastest emerging market, surging from almost zero in 2008 to $9 billion in 2012. According to a study by PayPal, projections point to robust growth that could well reach $15 billion in 2015. In the last couple of years, international and local funds have invested more than $250 million in the e-commerce industry. Leading investors, among them Naspers, Tiger Global Management, Rocket Internet, J.P. Morgan, Lumia Capital

and Abdel Latif Jameel, have poured funding mainly into Souq.com, MarkaVIP and Namshi. Commonly referred to as the Middle East’s Amazon, Souq.com, founded in 2005, raised a total of $150 million in financing, with the latest round valuing the company at over $500 million. Yet access to funding is still one of the main challenges startup founders face in scaling their businesses, as indicated by a recent study published by Wamda Research Lab (WRL). According to the survey, of the businesses that received funding between 2009 and 2012, only 21% raised more than $500,000. With 36% of entrepreneurs mentioning the lack of sufficient venture investments as a major barrier to scalability, it is obvious that more startup financing is needed, and investments larger than $500,000 are a pressing priority. But it is a measure of the dynamism of the digital economy that it has been consistently delivering such an impressive performance in spite of the hurdles. For example, the response from the young startup investment

landscape has been rather swift. Among the leaders in this space are incubators and accelerators, such as Oasis500, Flat6Labs and Gaza Sky Geeks, as well as early stage and venture capital funds, such as MENA Venture Investments, DASH Ventures, BECO Capital and iMena. Wamda Ventures is launching a scalability fund focused on growth companies in the internet space. Similarly, Middle East Venture Partners (MEVP) and Silicon Badia have launched funds focused on the same industries. There are also corporate funds investing in the region’s tech sphere, such as MBC Ventures, STC Ventures and Vodafone Ventures. In parallel, in countries like Lebanon, the Central Bank has allocated $400 million to guarantee up to 75% of Lebanese banks’ equity investments in SMEs, incubators, accelerators and funds.

PayFort and Telr are tackling head-on inefficient online payment systems to boost e-commerce, while Nefham, Edraak, Tahrir Academy and SkillAcademy are using the power of technology and MOOCs to make online education more accessible to Arab youth.

Omar Soudodi, Managing Director of PayFort 3 Status of the Digital Arabic Content Industry in the Arab Region. ESCWA, UN. 2012

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foodonclick.website

In the last couple of years, international and local funds have invested more than $250 million in the e-commerce industry.

Significantly, the momentum is not only regional. Rocket Internet and MTN’s recent partnership to invest around $400M in e-commerce, as well as 500Startups’ active investment in outfits in Amman and Dubai are just two examples of growing international interest in local tech opportunities. At the same time, the Arab expatriate community

in Silicon Valley has been playing an active role in bridging the Middle East and U.S. markets. TechWadi, for one, is leveraging its network to connect the region’s startups with U.S. mentors, capital and accelerators. Moreover, according to WRL’s mapping, since 2008, there has been a sharp increase in the number of institutions supporting

entrepreneurs in the Arab world. Currently, there are over 140 organizations actively working with regional startups. Wamda, Endeavor, Dubai SME and MIT Enterprise Forum Pan Arab Region have facilitated access to knowledge, networks and new markets. The Arab world’s rising digital economy is dynamic, exciting and ripe for exponential growth. It is the right time to invest in it. Supported by patient capital, Arab startups will run with every opportunity. There will come a day when the next Alibabas will emerge from the Arab World, and if players pool their capital, resources and networks to support the rising generation of tech entrepreneurs, that day will come sooner than we dare hope.

Wamda, Endeavor, Dubai SME and MIT Enterprise Forum Pan Arab Region have facilitated access to knowledge, networks and new markets.

Fadi Ghandour is the Founder and Vice Chairman of Aramex. He is currently Executive Chairman of Wamda Ventures, a new Venture Capital fund focusing on technology investments in the Arab World, and Managing Partner of MENA Venture Investments. He is Member of the Board of Abraaj Capital, Member of the Board of Endeavor Global, Member of the Advisory Council of the MIT Media Lab and Member of the Board of Trustees at the American University of Beirut (AUB). He is also Founding Investor in Maktoob.com sold to Yahoo in 2009. Ghandour is the Founder and Chairman of Ruwwad for Development, and Chairman of Ruwwad Micro-Venture Fund, an equity-based fund providing seed capital and support for microbusinesses and microentrepreneurs.

mit enterprise forum arab startup competition | kharabeesh website

The MIT Enterprise Forum Arab Startup Competition in Cairo, Egypt eariler this year

OCTOBER 2014

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OCTOBER 2014

Entrepreneur

IN THE LOOP Emirate of Sharjah to invest AED30 million in surveillance While most keep their eyes peeled on investments going on in Dubai and Abu Dhabi, Sharjah has been splashing its cash more often as of late. Sharjah Police has been working on a project to keep Sharjah as safe as possible, appropriately titled ‘Sharjah is a safe city’. Phase one of the project has recently taken off beginning with 500 CCTV surveillance cameras to be installed on major roads. This phase is expected to take five years and cost the Emirate AED30 million. Making sure that they use some topnotch technology, Sharjah Police signed a memorandum of understanding with Dell, who will be involved in upgrading current surveillance infrastructure and software, as well as building new ones. So, if you’re going to speed and violate a traffic law in Sharjah because “YOLO”, you might as well just smile and wave at the camera.

Kuwait suspends offset scheme to attract foreign investment hoping to modify it into something more acceptable. Minister of Finance H.E. Anas al-Saleh expects the revised scheme to be sorted out and implemented in half a year’s time.

Hoping to attract additional foreign investment, Kuwait decided to freeze their offset scheme, which has received much criticism from abroad since its inception. Introduced in 1992, the program requires large-scale foreign beneficiaries to invest in Kuwait’s economy. An example of this would be Kuwait’s military contracts with the United States; a 2012 U.S. State Department Investment Climate statement claims that the offset scheme was implemented at contracts valued at US$10.5 million or more. While large businesses can soften the financial blow of the offset scheme due to economies of scale, this doesn’t apply to others. As a result, Kuwait’s frozen the program

Hamdan Innovation Incubator (H21) What The Hamdan Innovation Incubator (H21) is a hub letting youths articulate their concept, incubate, launch and grow as a business. Set to open in Q4 of 2014, the 20,000 square ft. center will be located in Deira Business Village, Dubai, UAE.

Who Under the patronage of H.H.

Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, in partnership with Dubai SME, the agency of the Department of Economic Development (DED).

Expansion of Dubai’s Al Maktoum International begins It looks like we’re going to see Al Maktoum International spread its wings after UAE Vice President, Prime Minister and Ruler of Dubai H.H. Sheikh Mohammed Bin Rashid Al Maktoum, gave the go-ahead for the first phase of the airport’s expansion. The US$32 billion expansion is expected to take between six and eight years, but upon completion this airport is expected to handle about 120 million passengers annually. The airport’s space will widen by over 56 square kilometers, accommodating two satellite buildings and 100 Airbus A380 planes. And that’s just the first phase- by the time the second and third phases are done, the airport will be able to accommodate up to 220 million passengers.

Entrepreneur

OCTOBER 2014

Solar-steam generators implemented in OmanPDO Case Study vironment. Along with Royal Dutch Shell and a few other investors, Oman invested US$53 million on Glasspoint Solar Inc.’s solar-steam generators. In the interest of cost efficiency and the well-being of the environment, this turned out to be a win-win situation for Muscat. Using solar power to generate steam rather than natural gas is expected to reduce an With abundant oil reserves underground and some of the Weworld’s don’t hear much from butQuick theFacts extraction site’s natural gas consumption best solar resources overhead, Oman hasOman, seized the opportunity to integrate the two. Petroleum Development On Time. On Budget. by 80%, and is a much cheaper option GCCOman state right at the corner of (PDO), the largest producer of oil southeast and gas in Oman, No Lost Time Injuries. with GlassPoint to bring solar-fueled enhanced oil Exceeding Performance. than using gas-powered generators, costthepartnered Arabian Peninsula has taken a crearecovery to the Middle East. Location tive3fbS\RW\U bVS :WTS ]T =[O\¿a =WZÆSZRa approach to going green; they’re Amal in-West, Oman (Southern ing less than half as much. This looks like interior) a sound decision for Oman, and it could vesting in solar-steam generators to help customer Petroleum Development Oman (PDO) be a great decision for other oil producing them extract heavy crude oil. It almost Power Production states that don’t want to halt producsounds like an oxymoron, but we tend to 7 Megawatts Harnessing the Sun to Produce More Oil forget that the process of extracting fossil steam outPut tion, but do want to reduce their negative Average of 50 tons of steam per day fuels happens to be very taxing on the enimpact on the ecosytem. PDO is a world leader in innovative enhanced oil recovery (EOR) technologies. Over the past three decades, they have pioneered a range of EOR techniques, W\QZcRW\U abSO[ W\XSQbW]\ UOa W\XSQbW]\ O\R ^]Zg[S` Ç]]RW\U acQQSaaTcZZg W\Q`SOaW\U ^`]RcQbW]\ O\R SfbS\RW\U bVS ZWTSa^O\ ]T =[O\¿a ]WZÆSZRa O\R contributing to the growth of the Omani economy.

In Thermal EOR (the most widely used method of tertiary recovery) steam is injected into the formation to heat the oil and increase its mobility. Steam injection increases the rate of oil production and can also add years to the SQ]\][WQ ZWTS ]T bVS ]WZÆSZR 6]eSdS` bVS`[OZ 3=@ `S_cW`Sa O\ S\]`[]ca amount of natural gas to produce the necessary steam. Today, thermal EOR O^^ZWQObW]\ Q]\ac[Sa O aWU\WÆQO\b ^]`bW]\ ]T =[O\¿a \Obc`OZ UOa ^`]RcQbW]\

PDO realized it could increase production of heavy oil and conserve Oman’s natural gas resources, by harnessing the energy of the sun to produce steam for EOR. The natural gas saved can then be applied to higher-value uses within the Sultanate, such as industrial development.

Land size

Approximately 4 acres

construction timeLine Less than one year; Completed December 2012

SOLAR-STEAM GENERATORS IMAGE © GALSSPOINT | AL MAKTOUM INTERNATIONAL IMAGE SOURCE DWC.COM

Why To encourage and support early stage startups by youths through different services. The goal? To channel youth creativity and support the entrepreneurial talent capital of Dubai.

OCTOBER 2014

Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

The MBA The crossroads of higher learning and business Is management savvy impacted by executive education?

By Hassan Al Hazeem

ately, I’ve been hearing this question often, especially among young, aspiring entrepreneurs: ‘Is an MBA worth it?’ While I don’t think an MBA makes an entrepreneur, I strongly believe that an MBA gives an aspiring entrepreneur the conceptual and analytical tools to better understand how

to operate a business. However, without endless curiosity, the willingness to be better and the aspiration to ‘master’ what you are naturally good at, no MBA or any other formal education will help. In my own case, I knew what I wanted the most was to succeed in my father’s business, a company he founded 40

years ago. Working my way through the ranks, I took over the helm in 1999, when I was just 26. If anyone asks me if my MBA worth it, my answer is absolutely, yes. Studying in that environment not only helped me acquire knowledge and skills in areas that are crucial for running a business -from marketing research, strategic business planning, to business law and organizational culturebut it also exposed me to likeminded people, which for me was a great learning vehicle and an excellent networking opportunity. Where do I see my MBA studies helping me in my current job? Definitely in my capacity to strategize, to think longterm, to solve problems more efficiently and to be a better manager. Intercoil has become a leading manufacturer, retailer and distributor of premium beds, bedding and bedroom furniture in the MENA region, with a presence in 23 countries and a team of 400 people. We have the manufacturing and distribution rights to premium global brands such as Simmons. Even though we operate in a very competitive industry, we have developed a “Made in the UAE” brand that instills trust and confidence and represents the highest manufacturing capabilities of this country. I don’t believe that without an MBA I would have had the confidence to accept the

It all comes back to being an avid learner with the ability and interest in learning deeply and quickly. The moment an entrepreneur stops learning is the moment he or she becomes complacent, and that’s the beginning of the end. 34

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debate Do all entrepreneurs need to have an MBA to be successful? No, probably not, but I strongly believe that formal post-graduate education offered through reputable institutions will prepare them for the challenges they will face on their journey.

challenge to take over the family business at the age of 26, let alone turn it around, develop it, and grow it to where it is today. Do all entrepreneurs need to have an MBA to be successful? No, probably not, but I strongly believe that formal post-graduate education offered through reputable institutions will prepare them for the challenges they will face on their journey. In addition, it will make them more open-minded and receptive to knowledge and managing change, managing people, understanding the basics and fundamentals of the dynamics of the business environment. I have been an active member of the UAE Chapter of Entrepreneurs Organization since 2004another crucial learning experience for me. We encourage entrepreneurs to be bold, dare to dream, trust and respect and above all, never stop learning. It all comes back to being an avid learner with the ability and interest in learning deeply and quickly. vThe moment an entrepreneur stops learning is the moment he or she becomes complacent, and thatâ&#x20AC;&#x2122;s the beginning of the end. There are many young students today pursuing their MBA straight after university. I believe that, in order to maximize the value of an MBA, it should be done after having had a substantial amount of work experience and if pos-

sible, while working. This will enhance their ability to apply what they learn to real world situations. With or without an MBA, business success and happiness in life can be achieved only if we love what we do. Channeling our commitment, dedication, patience and perseverance towards achieving our dreams will help us remain focused. This is something I picekd up from my father, who was a visionary entrepreneur; he had the heart, passion, and vision and nothing stopped him from achieving his goals. Life gives us endless opportunities to learn, and formal education is part of the mix, but in the end it is our ability to make the most of these experiences that will make the difference.

Hassan Al-Hazeem, Managing Director and CEO of Intercoil International, succeeded his late father Abbas Ali AI-Hazeem, the founder of the UAE-based, familyowned business in 1999. Under his leadership, Intercoil International has become a leading manufacturer, distributor and retailer of total sleep solutions in the MENA region present in 23 countries. Prior to Intercoil International, Al-Hazeem worked for the Commercial Bank of Dubai for four years, acquiring comprehensive experience in finance and banking, and an in-depth knowledge of the UAE banking and credit system. Al-Hazeem has been an active member of the UAE Chapter of Entrepreneurs Organization (EO) since 2004, and held the office of EO UAE President for the FY 2012/2013. He holds a Bachelor of Science degree in Computer Science from the University of Missouri-Kansas City, and an MBA degree in International Business Administration from the American University in Dubai.

Skyline Universtiy College main campus

Booksmart Business admin programs on the SUC fall agenda

kyline University College (SUC) has bolstered its BBA and MBA programs after receiving approval from the UAE Ministry of Higher Education and Scientific Research to add new courses. The new courses, starting this fall semester, are Marketing and Retail Management and Public Administration Majors for the BBA program. For their MBA program, a new emphasis on E-Governance will be included. The new SUC courses were chosen after the institutionâ&#x20AC;&#x2122;s stakeholders analyzed outcomes of a survey conducted with SUC students and industry experts. A smart move by SUC, since shifting tech innovations and evolving consumer trends change every aspect of business. Time to hit the books!

OCTOBER 2014

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TECH

#TAMTALKSTECH Dare to be square

BlackBerry Passport reignites tech flame What can make a self-professed Apple fangirl revert back to her first love? Let’s take a quick trip down memory lane for context: I was a BlackBerry Curve girl back in the day. I loved everything about it, from the full keyboard to the track ball to its vibrant color (it was called “Sunset”). At the same time, the world was being introduced to a new phenomenon in smartphone technology -the iPhone 4- and I had been wooed. Apple had stolen my heart and we remained a happy couple for many years... until now. After seeing the Passport’s new swipe-enabled keyboard that allows for better cursor control

The Specs > 4.5 inch screen > Gorilla Glass 3 > 13 MP rear camera > 2.2 GHz Snapdragon 800 processor > 3GB RAM > 32GB storage expandable up to 64GB > 3450mAh battery

and faster typing, I’m reconsidering my relationship! The Passport Virtual Assistant is quite impressive- unlike its counterparts, this A.I. understands context and fetches the information you need on command. Last but not least, BlackBerry Blend lets you respond to email, BBM or SMS, and access documents, calendar, contacts and media in real-time from your Passport on any device. I really do mean any- BlackBerry Blend works across operating systems to include Mac OS X, Windows and Android. BlackBerry is back and in my opinion, more and more people will be squaring off.

| GEEK |

Ditching the desktop

Cloud-powered Google Chromebooks virtual desktops Virtual desktops are sweeping the computing industry and Google is at the forefront. The company recently announced a partnership with NVIDIA and VMWARE to use cloud powered, Google Chromebooks to deliver high-performance virtual desktops with superior graphics. So, what does this mean to you? No more storage and software restrictions based on your current hardware. With a virtual desktop, you can go beyond traditional desktops and access graphicsintensive applications like AutoCAD through the power of the cloud. The concept of virtual desktops has proved to be invaluable to the design, engineering, architecture, and medical industries. Break free and make your desktop a virtual reality.

Dubai does it better The global launch of the BlackBerry Porsche Design P’9983 took place in Dubai, UAE just one week before the Passport event. The Middle East wasn’t part of the global release- we were the actual center of it! The P’9983 is the first QWERTY 36

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Porsche Design smartphone with BlackBerry 10 OS, and we’re pretty comfortable saying it’s currently the best looking device on the market. BB 10 fans, feast your eyes on this baby. www.blackberry.com/p9983

Budget beauties Affordable smartphone overview multiple pictures before and after you push the shutter button to capture better action shots while Low Light Mode significantly increases camera performance in poorly-lit conditions. By merging adjacent pixels, the camera increases light sensitivity by up to 400% and contrast up to 200%, resulting in clear and bright low-light shots without the need for a flash. Ditch dark, grainy smartphone images and enjoy the lighter side of smartphone photography.

ASUS ZenFone

he MENA region is a great market for high quality, affordable devices. Major brands are now competing to bring you luxury and top-of-the-line features at budget-friendly prices. Here’s a quick roundup of some of the tech available on the market now at major retailers. ASUS “Out of the darkness” The ASUS Zenfone series includes three models Zenfone 4, 5 and 6 - each named for screen size. The series incorporates beautiful design, high quality materials, and ZenUI with cool features like PixelMaster, an exclusive camera technology that enables selfie and depth of field modes. Zenfone is powered by an Intel Atom processor which allows fast web access and seamless switching between apps. Zenfone 5 has Corning Gorilla Glass 3 for incredible scratch resistance, an 8 MP rear camera and two additional PixelMaster features: Low Light Mode and Time Rewind. Time Rewind takes

Acer “Wave of the future” The new Liquid Jade smartphone by Acer features a 13 MP rear camera and a 5 inch Gorilla Glass 3 display with IPS and Zero Air Gap technologies. It’s feather light, weighing only 120 grams and runs on Android 4.4. Acer pushed the envelope by incorporating an innovative curved body design to complement their much anticipated wearable device Liquid Leap. It tracks your fitness and health stats including steps, running distance, calories burned, and sleep cycle. The touchscreen smart device also enables phone, SMS notification Acer Liquid Jade

and music control from the wrist. Liquid Leap is intended to be sold with the Liquid Jade smartphone in certain markets. Wearables are the wave of the future and with such an affordable price tag, Liquid Jade is the smartphone to take you there.

Bang for your buck Bang & Olufsen combines function and fashion for sound superiority

Lumia 830 range

Lumia “Image is everything” The new Lumia 730, 735 and 830 smartphones offer industry-leading camera technology and software in a slim, colorful package. The flagship Lumia 830 model combines PureView camera with Microsoft services like Windows Phone 8.1 with Lumia Denim and OneDrive which offers 15 GB of free storage. Powered by a Quadcore 1.2 GHz Snapdragon 400 processor, Lumia 830 allows you to capture high-quality images and videos with a 10 MP camera including ZEISS optics and Rich Recording, the world’s thinnest optical stabilization system. Lumia 830 is an eye-catching smartphone. The aluminum and polycarbonate case design looks and feels good in your hand. It comes in four fun colors (orange, green, black and white) with a host of coordinating accessories. The Lumia 830 is budget-friendly and image approved.

BeoPlay H6 boasts premium, unfiltered sound without any tweaks or over-emphasized bass. The ergonomic headphones also feature a daisy-chain function that allows you to share music and the ability to move the cord from ear to ear based on your preference. While the sound quality is simple and straight forward, the design of these headphones is nothing short of over-the-top. They are wrapped in the finest cowhide or lambskin leather, and finished with carefully colored metal accents to add visual interest. Bang & Olufsen recently introduced three special edition versions of BeoPlay H6 in sophisticated colors; Graphite Blush, Bronzed Hazel, and Blue Stone. The striking new color combinations are designed for the stylish, urban music lover. Whatever your taste in music, BeoPlay H6 is sure to deliver high quality sound without compromising your style.

#TAMTALKSTECH Tamara Clarke, a former software development professional, is the tech and lifestyle enthusiast behind The Global Gazette, one of the most active blogs in the Middle East. The Global Gazette has been welcomed and lauded by some of the most influential tech brands in the region. Clarke’s goal is to inform about technology and how it supports our lifestyles. See her work both in print regional publications and online on her blog where she discusses everything from how a new gadget improves day-to-day life to how to coordinate your smartphone accessories. Visit www.theglobalgazette.com and talk to her on Twitter @GlobalGazette.

OCTOBER 2014

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TECH

Building blocks

I developed my own Middle East e-commerce portal By Sarah Appleton

ini Exchange is the region’s first online marketplace for kids’ fashion. Think of a highend eBay, but with none of the hassle, crossed with an online outlet mall, and you

have Mini Exchange. Mini Exchange is something that’s never been done before in the region; we’ve built an online marketplace for parents to buy and sell new and like-new kids’ clothing,

accessories, fancy dress and school uniform, and we’ve also developed a site for brands and retailers to sell their end-of-season items. It’s simple: thousands of items, all at a discount and delivered to the doors of parents with just the click of a button. Becoming a ‘trep

So how did it all begin? I took the plunge and left the corporate world last year to focus on founding Mini Exchange and then launched the site in January of this year, which feels like a lifetime ago already! Formerly, I worked in finance and was always working for other people, advising inspiring entrepreneurs on how to grow and sell their companies, and secretly I was always envious when they left the room. I wanted to be on the other side of that table. I’ve also always loved the consignment world and got the bug for it during my university years. Seeing a similar concept to Mini Exchange work in other parts of the world coupled with the fact that there is nothing like it in the region really gave me the confidence to jump ship and try and make a success of something I’d always been very passionate about. 38

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Leaving the security of a corporate job with steady hours and a comfortable, regular income was very hard. Now I can look back and be glad that I did it, but at the time I had no idea how it would work out or what might happen. I hadn’t had any experience of setting up my own business and definitely no experience of setting up my own business in the Middle East. The process was lots of hard work, not much sleep, lots of highs and lots of lows. I think on more than one occasion I called my family back in the UK and said, “Right, that’s it, Mini Exchange isn’t going to happen.” Perseverance is definitely key. One of the biggest challenges of setting up an e-commerce business

Seeing a similar concept to Mini Exchange work in other parts of the world coupled with the fact that there is nothing like it in the region really gave me the confidence to jump ship in the Middle East is that there are still lots of people here that are apprehensive about ordering online. When and where will the item be delivered? Will my credit card details be secure online? These are the common questions that we get from new users and although we believe that the e-commerce market is set to boom out here, it does take time to build user confidence in these areas. Because e-commerce is still in the fledgling stage, a lot of the support services are also still developing. One example? Setting up a “payment gateway” so that users can safely input credit card details is

Setting up a “payment gateway” so that users can safely input credit card details is very arduous and expensive. I know that in Europe procedures like that would have been a lot easier. very arduous and expensive. I know that in Europe procedures like that would have been a lot easier. I launched Mini Exchange with my own capital and some from one other investor. The upside of doing this is total control. We have had interest from external investors already, but decided to invest further ourselves– we think the initial capital in the business is allowing us to fully prove out the demand side of the business, which will put us in a better position for our first external round of funding. Current events

The response to the site really has been amazing. Parents love how easy the site makes shopping online and they value how easy the site makes selling items that their little ones no longer fit. In terms of progress to date, we’ve signed over 20 partnerships with global and local brands and retailers and already have over 1,000 items listed on the site from parents. There are greater than 4,000 items listed on the site from the brands or retailers themselves, which is really exciting. We foresee those numbers doubling over the next six months- parents can then select from an even wider range of kid’s fashion on Mini Exchange. The site currently has everything from Gap pajamas to little Dior dresses, and all of the items are listed at a discount so there’s something for everyone. When the business was just three months old we won the ArabNet Beirut StartUp

Demo Competition, and then went on to be a finalist in the Seedstars World competition. We have also just been nominated for three of the categories in the Gulf Capital SME Awards: Start Up of the Year, Online Business of the Year, and Innovation of the Year. To hear that was pretty amazing, and when I see who we are up against it’s very humbling. I’m very proud of my team and all the users that support us- we couldn’t have got this far without them.

In terms of progress to date, we’ve signed over 20 partnerships with global and local brands and retailers and already have over 1,000 items listed on the site from parents.

Although the site is technically already global with parents being able to sell and shop from anywhere in the world, our marketing efforts are currently focused on the UAE. The near term plan is therefore to spread the word to more and more people in the UAE, and then to push the site into a number of the neighboring GCC markets. It’s an exhilarating time. We think that we really are on the road to creating the online marketplace for children’s fashion in the region– the place where all parents come to shop for their little ones. We have big plans for the site across the Middle East, not just in the UAE, and I’m really looking forward to the next phase of Mini Exchange.

Sarah Appleton founded Mini Exchange at the start of 2014. Previously, she had a successful career in finance, spending four years at Deloitte in Mergers & Acquisitions advisory, first in London and then in Dubai. After two years in the Gulf, Appleton left the finance world, recognizing the potential of the early-stage e-commerce market and the Mini Exchange business model. Appleton and Mini Exchange have been recipients of many awards in the last year, including ArabNet’s Start-Up Demo Award, a listing as one of the 50 Most Influential Brits in the UAE, Small Business CEO of the Year Award in the Middle East CEO Awards, and most recently as finalists in three of the categories in the Gulf Capital SME Awards. OCTOBER 2014

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The Rise, Evolution and Future OF Branded Mobile Application Marketing in MENA

Born Interactive CEO Fadi Sabbagha

ntrepreneur Fadi Sabbagha, an interactive communication specialist with over 18 years of experience in online industry and digital media, established Born Interactive (BI) in 1996. Driving it to become one of the leading regional New Media agencies, with core competencies in web, mobile and social media, Sabbagha combines business, marketing, and management skills for application to web design, development, planning, implementing digital and social media strategies, online advertising, e-commerce, and digital marketing campaigns. He has extensive expertise in creative digital communication and web on platforms ranging from Web 1.0 to the

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latest Web 3.0, mobile apps and social influence marketing. “Throughout the past two decades, digital media has evolved from a ‘what’s this?’ to a ‘good to have’, ultimately [becoming] a ‘must have’ commodity. We used to be seen as an outof-the-box, selective yet not very convincing channel, but then evolved afterwards into a non-appreciated challenger to other traditional channels. Today, digital media is a fully-sought fancy, must-have medium. This evolution is driven mainly by the rapid penetration and expansion of the internet and its different digital devices like web, mobile, tablets, social media, and the like,” explains Sabbagha. A lot of brands are expanding their presence to the mobile platform. When should a brand create its own smartphone application?

A brand should consider having a smartphone application in mainly two cases. First, when the brand knows that the penetration of smartphones within its targeted

audience is significant, and is convinced that the experience and message that needs to be communicated should be available at the palm of their hands and on the move. Second, when the brand

“Branded mobile applications should usually offer exclusive benefits to the user and added-value in terms of content and experience.”

wishes to ride the wave and trend of mobile, and wants to establish its space and usage share on the mobile channel. Can you tell us a bit about the importance of mobile and m-commerce in the region?

A little known fact is that the region has the highest mobile Internet user penetration rate in the world and leads when it comes to smartphone

“They should think mobile and use the native experience that is offered on the phone considering user interface, design, touch-friendly features, GPS, push notifications etc.”

adoption with UAE at number 1 with a 73.6% rate, and KSA at number 3 with 72.8% according to Ipsos (2013). A study conducted by the European Travel Commission found that the value of mcommerce in the Middle East is estimated to reach US4.9 billion dollars by 2015. In addition to that, region specific e-commerce sites are more popular than the international ones in KSA, UAE, Jordan, and Egypt. All these numbers show us that the region is on the right track and still has an amazing potential to excel and blossom in mobile technology in the near future. In a world where every mobile is loaded with dozens of different apps, where only very few are used on regular basis, how does a branded mobile application shine between all of the competition?

Branded mobile applications should usually offer exclusive benefits to the user and added-value in terms of content and experience. Brands should then adopt integrated communication strategies

using all the channels that reach their target audiences, and make sure they are crosspromoted when possible. Users can then choose the channel (or channels) that is (or are) most convenient to them and [suited] to their particular required use. As an example, a newspaper or a TV should promote its mobile application so that its audience would use it when they require to access their information while on the move. On top of that, all apps should have a very well thought out, active yet nonintrusive push notification strategy. The smartphone users would be solicited to use the app whenever a relevant piece of content is shared with them or a call for action is required. What are some guidelines that a brand should follow while conceptualizing their mobile application?

Mainly a brand should consider the following during the planning phase: Make sure their targeted audience is smartphone-equipped, always create a user-centric experience by thoroughly going over how the user uses the application and making sure the typical user journeys are simple and flawless. They should think mobile and use the native experience that is offered on the phone considering user interface, design, touch-friendly features, GPS, push notifications etc., and consider having mobileexclusive features when applicable. Brands should plan strategically by creating a roadmap of your features roll-out, developing and releasing as you go.

The evolution of mobile is speeding up at an overwhelmingly rate, and we know that ‘no app at all is better than a bad app’. How can a brand keep up with its mobile presence without compromising a good brand image?

Like for any other medium, start simple and grow as needed. A brand should set a mid and long term strategy or roadmap for their mobile

presence, and execute it in phases keeping a pipeline of features for the future. Simple is beautiful when it comes to user experience of “the region has the highest mobile internet user penetration rate in the world and leads when it comes to smartphone adoption with UAE at number 1 with a 73.6% rate, and KSA at number 3 with 72.8% according to Ipsos (2013).” OCTOBER 2014

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branded applications. When answering one core need at a time then evolving by gradually adding new features that would justify new boosts in the app usage, that would help avoid any mishaps and glitches that could jeopardize the brand image. However, even when following a definitive roadmap, a brand should keep a good space for agility and flexibility as new features might be required by the users that are only identified after launch or created out of the blue. Is gamification the future of mobile or is that just a passing craze?

I wouldn’t say that gamification is the future of mobile as much as I would emphasize

its prominent place in the future of mobile. Gamification is a dimension that will increase user engagement with the application and the brand, while spreading its seed via social competitiveness. This encourages users to keep coming back to use the application again, which at the end of the day is translated into brand awareness and customer loyalty. Can you tell us about some specific cases, where creating the mobile application was a huge challenge, and the methodology used to tackle that?

Born Interactive was commissioned to design and develop Panda’s mobile application, as this would support their marketing efforts and help them re-confirm their position as the biggest retailer in the region. The main challenges in developing this application was the integration with multiple systems, some of which were legacy systems; and the update frequency of the application, as products and promotions

Social media science

Twitter opens analytics to public Ever wonder who actually reads your Tweets? Ian Chan, frontend software engineer at Twitter announced in a Tweet how the social platform has rolled out its analytics tool dashboard for everyone. Previously, Twitter analytics were accessible just for advertisers and verified users, and now the doors are open to all. You can now see how your tweets perform- a very useful feature to plot your social media strategy. There’s also the strange beauty of your organic reach, the number of impressions from the last 28 days in an interactive chart, and the engagement rate of how your 140 character messages attracted clicks, retweets, favorites, and replies. You can get to know your followers’ interests, location, and gender percentages, too. For data geeks and social media community managers, a CSV file can be

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The results were stunning for Panda, as the mobile application complemented the website and largely increased the reach of Panda’s promotions and activities, which help in reducing operational and printing cost. Today with almost 700,000 downloads across platforms, the Panda mobile application is a main driver for promotional communication for Panda.

had to be created on the go, prices change on a continuous basis and new products are added every hour. Panda is the largest supermarket chain in Saudi Arabia, and it operates in most of the Kingdom’s cities. Giving the right offers, the right products and the right prices for different users in different cities required a robust infrastructure and an interfacing layer that allowed each city accessed within the application to have its own localized and customized content.

downloaded with all the stats nicely presented. Now, you can see whether your “Have a good day everyone!” tweet is earning you cool points on the timeline. Besides this nifty addition, Twitter is also testing the commercial waters. Available to a few U.S. users before widespread release, a “Buy” button is available to let users discover and shop for products directly from a Tweet. The function is being tested by partnering with CardSpring (a payments infrastructure company that Twitter has acquired), @Fancy, @Gumroad, @MusicToday, and @Stripe. Meanwhile, over at Facebook, a commerce platform is also in the pipes. Let the games (and shopping) begin!

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GOING GREEN

IN the workplace The bottom line isn’t just about saving money simple steps can make all the cost (and care) difference By Suhail Al-Masri

eing sustainable isn’t a choice anymore, it’s a necessity. In fact, 96% of respondents in the August 2014 Bayt.com Green Workplaces in the Middle East and North Africa poll say it is important for them to ‘go green’ in their lifestyle. A further 80% say that environmental issues concern them to a large extent. This overwhelming attitude to going green must be followed up with appropriate action. When most people think about green living, they usually think about their homes. If you stop to consider where you spend most of your weekdays, however, you would probably realize that a lot of your time is actually spent at the office. Although you might think that introducing a green way of thinking could cost your company money, it is not only more cost-effective, but can also provide a better and healthier workplace for your employees.

Simple recycling measures can significantly reduce your waste removal expenses. Place a paper recycling box in your office and encourage your team to use it. 44

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Since your workday begins when you arrive, let’s start with how you get there. The best case scenario is to telecommute by working from home. Today’s technology, like video conferencing, instant messaging and

online seminars, has made this a reality. However, if your office can’t be home-based then why not opt for walking or biking? Four in 10 professionals in the Middle East and North Africa (MENA) region drive to work daily according to the aforementioned poll. Driving uses up our energy sources, and causes pollution and noise. So instead of driving, consider carpooling or using public transportation. Other alternatives are purchasing a hybrid or electric vehicle or switching from an eight-hour

workday, five days a week to a 10hour workday, four days a week. This will cut your daily commute time by at least 20% and give you longer weekends, too. When it comes to today’s digital era, paper usage can be kept to a minimum. And when it Greening the space in which you work has almost limitless possibilities. Start with good furniture, good lighting, and good air. Furniture can be manufactured from recycled materials as well as recyclable.

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GOING GREEN IN THE MENA WORKPLACE REPORT BAYT.COM

TREPONOMICS comes to going green, the greenest paper is no paper, and one of the most effective ways to be eco-friendly in your office is to reduce waste. Switch from a fax machine to a fax modem to send and receive paperless documents. Use electronic forms whenever possible, and email letters and documents to be read online rather than printed out. Have staff members take their laptops to team meetings so that they aren’t printing reams of reports. An added bonus? Storing files on your computer saves time, money and space. Just don’t forget to backup, preferably to an offsite data system. You can also use compact flash drives to transport and share

Storing files on your computer saves time, money and space. Just don’t forget to backup, preferably to an offsite data system. documents easily and efficiently. If using paper is an absolute must, then you can invest in a double sided-printer, with recyclable, eco-friendly cartridges. In the Middle East, 66% of professionals use the recycle bin to dispose of used paper at

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Use electronic forms whenever possible, and email letters and documents to be read online rather than printed out.

work, as per the Bayt.com Green Workplaces in the Middle East and North Africa poll. Greening the space in which you work has almost limitless possibilities. Start with good furniture, good lighting, and good air. Furniture can be manufactured from recycled materials as well as recyclable. Incandescent bulbs can be replaced with compact fluorescents and there is an ever-growing selection of high-end LED desk lamps that use minuscule amounts of energy. Not only is natural daylight a free source of lighting for the office, it has been proven to improve worker productivity and satisfaction. Workspace air quality is also crucial; good ventilation and low-VOC paints and materials (such as furniture and carpet) will keep employees happy and healthy. You could even bring small plants to the office- indoor plants are natural air filters, absorbing airborne pollutants and radiation from computers while replenishing oxygen levels. Conserving energy is really not that difficult, it just requires

paying attention to detail. For starters, you could put your computer on sleep mode when not in use, or shut it down before leaving office. This strategy is followed by 58% of MENA professionals, and it has helped their companies save on energy. Also next time you’re replacing office computers, remember that laptops and notebooks use up to 90% less energy than a desktop PC. Another mental check is ensuring that all power switches are off when idle. According to the Bayt.com Green Workplaces in the Middle East and North Africa poll, 71% of professionals in the MENA say their company uses energy-efficient lighting in their office. Recycling is another way of going green at the office. Simple recycling measures can significantly reduce your waste removal expenses. Place a paper recycling box in your office and encourage your team to use it. Also, certain items such as mugs, cardboard boxes, folders, plastic bags, etc. can be reused, so make sure they are not thrown away. Re-using items at work is big: 77% of MENA professionals re-use items either sometimes or all the time, as per the same Bayt.com poll. Pens and pencils can also be made of recycled materials, and refillable pens and markers are preferable

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

to disposable ones. Use biodegradable soaps and recycled paper or cloth towels in the bathroom and kitchen, and provide biodegradable cleaners for the custodial staff. Buy in bulk so that shipping and packaging waste are reduced, and reuse the shipping boxes. Recycling printer cartridges is often free, and recycled replacements are cheaper than new ones. Going green is becoming a way of life in many places. Your office doesn’t need to be an exception. Whether you work in an office, shop or factory, run your own business or manage a corporation, taking care of the environment is easier than you think. Creating a greener office can result in a healthier and more productive place to work, a lighter ecological footprint, increased staff morale and good news for your bottom line. From switching to non-disposable kitchen supplies to turning off lights whenever possible, we hope these new routines will help you cut down on waste and costs.

Incandescent bulbs can be replaced with compact fluorescents and there is an evergrowing selection of high-end LED desk lamps that use minUscule amounts of energy. 46

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The Esquire Guy on why you have to stop using your phone during meetings By Ross McCammon

ay I check my mobile device during a meeting? No. But what if I’m expecting an important call? No. OK, fine … if you’re the most important person in the room. Then there won’t be any immediate and overt social repercussions from snagging a look-see. No one will ask you to put the phone away or stare at your fingers, trying to mind-meld you to keep you from texting. But you will seem disengaged. And this is obviously insulting to the other people in the room. But what if…? No. OK, maybe … if the baby could come at any time. (I’ve been there.) Well, can I just set it down in front of me? That’s awful. Oh, like you’ve never done that. Of course I’ve done it! And I’m ashamed. We all should be ashamed. About 10 years ago, at the advent of text messaging, we began to loosen the rules. We began expanding the landscape of social situations in which we should be able to check our device anytime we want -at a meeting, at a movie, at a bar, at a baptism- and so we do. We decided that the device was our assistant, our agent, our friend, our personal publicist and chronicler. And that it was necessary. And so, the device became an accessory. A crutch. A tool. But who is the tool here, really?

The Psychology

If you want to understand the way mobile devices affect how we socialize in business, look to a cognitive psychologist. Like, say, Ira Hyman, a Western Washington University cognitive psychologist and professor who studies memory, attention, thinking processes and consciousness. “Whenever people are in a situation where they’re both trying to track a social interaction they’re engaged in and track something with their cell phones, they’re engaged in a divided-attention task,” Hyman says. “What

About 10 years ago, at the advent of text messaging, we began to loosen the rules. We began expanding the landscape of social situations in which we should be able to check our device anytime we want

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OCTOBER 2014

this means is that they’ll do both these things more poorly than if they did one of them. There’s always a cost for the person engaged in this multitasking. It’s going to disrupt their ability to track the conversation and their ability to use their cell phone for other tasks.” In fact, a study by researchers from the University of Essex in the U.K. found that the mere presence of a cell phone in a social situation can distract the participants and disrupt the conversation. Of course. What’s interesting about this is not the psychologythe psychology is obvious. It’s the etiquette. But Hyman has something to say about that, too. The Etiquette

The problem is that we haven’t settled on any rules yet. Hyman and his colleague Deborah Kirby Forgays conducted a study published last year in which they asked people of various ages about their views on mobile-device use in social situations. As you might expect, “the youngs” think it’s acceptable to use a mobile device in more situations than older people do. “I don’t think either of these is the ‘right answer,’” Hyman says, as an objective researcher should. “I don’t think our society has actually settled on a set of expectations yet. The stickiness is in the expectation about how quickly people should get back to you. So if you send me a text or an email, how soon am I expected to get back? Your older populations don’t necessarily expect constant, immediate responses. Your younger groups expect more immediate responses, both for social situations and, I would imagine, professionally, too.” The younger people are wrong, Ira! For Hyman, of course, it’s not so cut and dried. “It’s your social tool, but it’s your professional tool as well,” he says. “I see people using the cell phone as part of the conversation- to pull out to look things up, check things, share things around the table. They can be incredibly useful tools in these situations. It’s just

KEY TECHNICAL MATTERS > When attempting to check your device during a business meeting, do not check your device during a business meeting. > Those who check their devices may be stared at for longer than is comfortable for either party. > No tsking. > OK, you can tsk.

> If you must check your device, excuse yourself, clearly stating, “I must check my device.” > Saying “Uh-huh… uh-huh… uh-huh” in an indifferent fashion while texting does not suggest engagement in the matter at hand. > Laughter at some Instagram pic you just looked at does not

suggest engagement in the matter at hand. > FaceTiming with Grandma does not suggest engagement in the matter at hand. > Don’t even put it on the table in front of you. > Don’t even think about it. > Act as if it was never invented.

neither of us was panicking enough to check our Twitter.) He’s right. We do panic. But what are we panicking about? I’ll be generous to the youngs and say that what we may be doing when we check our phones in a meeting is alleviating one distraction so we can focus on the matter at hand. But what we -youngs and olds united together in an awkward coalition- must do is: not be distracted. This idea that we must immediately respond -even to eliminate a distraction so we can focus better- is shortsighted and immature. And it undermines a fundamental truth about business. And that is: There’s nothing more fruitful than being in a room. You gotta get in the room. And once you’re in it, the person in the room should be treated as the most important person in the world. All the people around a meeting table? They are your focus. The others can wait. The device can wait. That distraction we feel when we know (or even just assume) that someone has tried to reach us but we haven’t yet responded -a tweet has not been retweeted, an email has not been answered, a text has not been replied to- is what one of my colleagues at Esquire calls “social panic.”

Can You Check It? Devices you may consider fiddling with during a meeting, in descending order of appropriateness > Whatever device you happen to be meeting about, if your meeting involves a device > Speakerphone, if necessary for meeting > Wonky stapler > Tape dispenser > Watch (at the very end of a meeting) > Watch (in the middle of a meeting)

that we’re still figuring out the etiquette of it. I don’t think it’s settled at all. And I don’t think [the older] generation is going to settle it.” That distraction we feel when we know (or even just assume) that someone has tried to reach us but we haven’t yet responded -a tweet has not been retweeted, an email has not been answered, a text has not been replied to- is what one of my colleagues at Esquire calls “social panic.” (He said this to me over drinks, which is probably why

Checking your phone is vulgar, panicky, needy. Those are not qualities you want to be associated with. You want to be responsible and attentive. Aggressive to be sure, but focused. But not to the people way over there. You owe all of your attention to the people right in front of you. You don’t want to miss a word they have to say, and you don’t want to miss how they say it. Because what you might be missing is something good for your business. And what your distraction might be telegraphing is: You’re not worth doing business with. Don’t check it. Don’t have it out on the table in front of you. Don’t even think about it. Stop thinking about it. That’s better. Once you stop making it available to you, the device is no longer a tool. And neither are you. See this article in its entirety at Entrepreneur.com

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The Social Majlis by Kun Studio

Princess Noura Bint Saud AlSaud wants you to

repurpose, reclaim and reconsider

Riyadh’s Rukun Gallery is KSA’s newest art and design destination By Pamella de Leon

Kun studio pieces have Islamic influences integrated with contemporary design, and even a commentary on social networking- a sign that they’re in tune to the indications of today’s social behavior. 50

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ukun Gallery wants you to see how materials are manipulated and hopefully, “transform our preconceived notions of the way they behave.” Sounds ambitious? Don’t let your doubt get the best of you just

yet. The gallery, a venture of KSA’s art aficionado Princess Noura Bint Saud AlSaud displays handpicked contemporary and unique creations from and by artists and designers around the world, along with pieces

from the gallery’s own design studio Kun. The 26 yearold Art and Contemporary Design graduate has always been a museum and gallery hopper, and it has influenced her design style and later, fed her enthusiasm for relating to

In terms of the gallery’s visuals, Rukun worked with local branding company Bold Creative Boutique to establish their identity. The art hub and space avoided the corporate look and wanted to emphasize on culture, prompting the Arabic typography with some creative license– which the agency boutique was able to combine and convey by creating their own typeface.

different cultures and putting that to work in her pieces. Prior to opening, Rukun participated at the Alkhozamah Art of Design exhibition to launch the gallery and display selected works from the region, and also won third place in the Bandar AlJibreen award. But the gallery has had their share of hur-

dles. Its opening was delayed to ensure the space’s specific atmosphere: clean and spacious, but just as inviting- a statement to Princess AlSaud’s dedication to the gallery’s identity. Rukun focuses on “nurturing personal experiences” for its visitors, displaying pieces that have history to encourage an interactive space where creativity can be discussed, while Kun ensures it creates functional design pieces, deeply rooted in tradition. The gallery officially opened to the public earlier this summer in July at Nujood Center, a central location and easily accessible. Social and environmental aspects of CSR are issues that Princess AlSaud is enthusiastic about too. With both featured designs and original pieces, Rukun wishes to “find

a message that the piece can deliver to take it with them to whomever decides to purchase it.” Kun studio pieces have Islamic influences integrated with contemporary design, and even a commentary on social networking- a sign that they’re in tune to the indications of today’s social behavior. They’ve let history and how it’s “been transformed to fit modern life” reflect in their “Social Majlis.” At the same time repurposing and reclaiming is a theme as well, a concept not widely utilized in the Middle East. How do they plan to market these global trends to its un-

The gallery officially opened to the public earlier this summer in July at Nujood Center, a central location and easily accessible. familiar audience? By showing people the results from reclaiming furniture, and most importantly, educating them of its advantages- not just transforming old pieces to something newer, but also reduce wastage and help the environment. With any theme they want to convey, casual subtlety is their style, although they do have plans for more exhibitions catering

The Up Balloon Table by Duffy London

Kun Studio Design

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to specific issues. In terms of the gallery’s visuals, Rukun worked with local branding company Bold Creative Boutique to establish their identity. The art hub and space avoided the corporate look and wanted to emphasize on culture, prompting the Arabic typog-

raphy with some creative license– which the agency boutique was able to combine and convey by creating their own typeface. They’re not the only company Rukun has collaborated with. The gallery has also partnered with transportation startup Careem Saudi in a bid to

ensure accessibility for its visitors, even offering free rides on the opening day and a discount code in the works for future visitors. They will also be importing finds from around the world, including from Lebanese designer Iyad Naja.

Above: The Rainbow Chair by Kun Studio

Flying Carpet Coffee Table by Duffy London

What does your handwriting say about you?

Universal Type Experiment website

Experimental project collects handwriting for a universal typeface Remember the pressure to perfect your penmanship? Considered by some to be pseudo-science, penmanship supposedly says a lot about your character. We’ve got a website that graphologists and handwriting enthusiasts will enjoy. Bic, known for their classic ballpoint pen, has launched The Universal Typeface Experiment. Started in a bid to promote their Cristal stylus, a new model with a rubber tip for touchscreen devices, The Universal Typeface Experiment wants to unite the world’s handwriting into a universal typeface. The website invites people to contribute their own handwriting to the experiment or explore existing contributions. From the pool of letters, the algorithm creates the average letter shape. The interactive website can be a little confusing to get used to, but 52

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once you get the hang of it, users can explore by gender, age, country, handedness (for left/right handed), and even occupation. Using an app, people can submit their handwriting by drawing letters with one finger. With over 1,721,871 characters submitted from 146 countries, if you’re keen to see data on how we as a global entity write, it’s a fun experiment and interesting site.

Rukun focuses on “nurturing personal experiences” for its visitors, displaying pieces that have history to encourage an interactive space where creativity can be discussed.

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

CULTURE

Ziptwin’s design duality

uring a supermarket run, Andrew Hughes was faced with the dilemma of carrying his purchased items without a bag. Having only his skateboard and jacket on hand, he tried to wrap it all in his hoodie. Dropping everything led to the question of why his jacket couldn’t be used a bag. With his background in engineering and sustainable design, he started to work on what would become Ziptwin.

From the ground up

For a purpose

A Cardiff University Civil Engineering graduate, Hughes previously designed for California skate parks, focused on building concrete skateboard facilities globally. He’s currently working with sustainable architectural company Pumpkin Architectural Design, developing sustainable villas and residential architectural projects in the Gulf. Being the creator of Ziptwin, Hughes’ main challenge was designing it in an aesthetically appealing way while ensuring comfort and ease of use. Other than that, he is also trying to spread the message of dual-function, sustainable fashion. “I was calling in favors from friends and family to help out with my idea from my bedroom late into the night.” Ziptwin’s web design, logo, video promos, and photos were the fruits of those favors. He does point out that the branding is infused with his personality, calling it “the aggregate of my life and passion.”

Ziptwin will be manufactured cotton, fabric and fleece. Hughes says that “sustainability hasn’t penetrated enough into the fashion industry,” adding that designers should develop “simple practicalities into fashion and create dual purpose which can lead to savings. Fabric production also isn’t sustainable and Ziptwin plans to be one of the first to use wholly sustainable cotton and fabric sources which can take advantage of reusable and sustainable production methods.”

Above: Ziptwin crowdfunding campaign

Things to come

Ziptwin is rooted to being dual purpose and developing on fusing function and form as a means of creation to “hopefully reduce consumers’ wastage.” The feedback has been good so far and Hughes plans to take the product for fitness, outdoor and lifestyle purposes as they progress. There’s also plans on establishing an online store, and a small headquarters in Dubai.

Gulfood, Dubai

| LIFE |

“I’m addicted to you” The Middle East’s first coffee museum set to open in Dubai If you’re one of those ‘treps that craves a caffeine fix every morning, then you’ll definitely enjoy this place. Coffee trader and collector Khalid Al Mulla has opened the first coffee museum in MENA, giving Dubai residents a taste of regional and international coffee history and culture. Officially opening to the public at the end of the month, the museum is situated at the heart of heritage neighborhood Al Fahidi, and lets visitors experience various coffee ceremonies; Ethiopian, Egyptian and Emirati coffee traditions. Al Mulla, a partner in Dubaibased coffee retailer Easternmen & Co, will also feature his coffee-related paraphernalia along with antique items from Yemen, Egypt, Turkey, Syria, parts of Europe, the U.S. and Japan. The new museum will also boast a literature room and a coffee brew bar with the latest brewing technology, adapted from Italy and Turkey.

OCTOBER 2014

Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

‘Trep trimmings

The executive selection Christian Louboutin’s latest selection of fine footwear will have you two-stepping all the way up the corporate ladder.

Christian Louboutin De Sailly Flat Calf Havane

For Him In the Christian Louboutin FW14 range, handsome calf leather and subtle accents make for great office and leisurewear options. Fans of the classic Oxford will appreciate the Louboutin Education Flat in black, brown or our favorite, a surprisingly suitable navy. For gentlemen in the market for a standout loafer, the Louboutin De Sailly Flat in black or brown may be just the ticket. If the occasion calls for black tie, opt for the designer’s New Orleans Flat Patent Tissu Moire.

Christian Louboutin De Sailly Flat Calf Black

Christian Louboutin Education Flat Calf Navy

Christian Louboutin New Orleans Flat Patent Tissu Moire Black

Christian Louboutin Trepeter Flat Calf Black

Entrepreneur

OCTOBER 2014

Christian Louboutin boutique in The Dubai Mall

All tied up

Fashion forward entrepreneurs, we’ve got Etro’s AW14/15 range on the radar for you. If you’re a boss in bow tie, you can go bright with their newest collection. The micro-paisley seen in Etro’s suits and shirts this season has also been brought to the bow tie- try this if you’re wanting to add a little complexity to your look. Etro’s ties are wearing thinner in line with their suits, and geometric patterns in a slew of basic shades are getting the executive treatment.

Christian Louboutin Iriza 120 Kid Blush N°4

Christian Louboutin Fifi 120 Patent Black

Editor’s Pick Bare it all at the office

Christian Louboutin Beauté, available exclusively at Christian Louboutin boutiques globally as of October 1st, released the signature shade of the new Nail Color line mid-September. Rouge Louboutin, meant to echo the red of the hallmark Louboutin sole, was the first of 31 colors in the Christian Louboutin Beauté nail lacquer range. Free of Toluene, Formaldehyde or DBP, the range is highly-pigmented and longwearing. For maximum impact, first apply the Loubi Primer followed by your chosen shade –we like the nudes for the officeand finish with the Loubi Gloss.

Christian Louboutin Tucsy 120 Patent Nude Gold

In brief The 1950’s hardcase briefcase is back! We like the boxy look with studded trim and gold hardware. Etro is aiming for both sturdiness and good looks by adding the matching stitched reinforced corners in fine black statement leather.

For Her Office appropriate? Yes, indeed. The master of all things stiletto has released his FW14 range and there are a few options that easily go from day to night. Black doesn’t have to be basic- choose the Christian Louboutin Fifi in patent leather to pair with higher-end office attire. Looking for a great pair of neutral heels? Check out the Iriza 120 Kid Blush N°4. For those of you who like a little more punch, the multi-toned Christian Louboutin Tucsy 120 Patent Nude Gold does the trick.

OCTOBER 2014

Entrepreneur

IN PICTURES

Who’s Who EO UAE Chapter Board of Directors

Celebrating the ‘trep life EO UAE stages annual opening event

he Entrepreneur Organization (EO) UAE Chapter’s annual Welcome Back bash took place on September 12th at the Conrad hotel’s Latin-themed IZEL. We were present and accounted for at the festive affair organized by Raging Tiger, EO member Rohan Mehta’s events-oriented venture. Following a hearty address by President Vikram Shroff, the EO Board of Directors was introduced to members and to EO Strategic Partners Abu Dhabi Commercial Bank (ADCB), McLaren Automotive, and Uluvka Vodka. ADCB was represented by Head of Wholesale Banking Howard Gaunt, and Senior Vice President Head Mid Corporate Division Bhupesh Sharma. “McLaren [Automotive] has just come on board as an EO Strategic Partner, and we are working closely with them to learn as much as possible from them as the new ‘billion dollar startup’,” explained Shroff. “Throughout the year, the 56

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OCTOBER 2014

organization stages various learning and social events with world-class speakers, including events for children of EO members as well.”

Each year the EO Board of Directors is selected by the Chapter’s current president. With a total of 69 member in the UAE, “the board members plan and run the activities of the chapter during the fiscal year on a pro-bono basis. The current board began July 1st and will continue in office until June 30th, 2015,” said EO Communication Chair Nita Maru. “EO Members share a mutual interest in improving their skills in operating a business through access to leading educational programs, to human and physical resources in support of their growing firms, and to sharing and participating with others who have similar drive, goals and experiences.” President Vikram Shroff Integration Chair and President-Elect Manish Hira Learning Chair Amir Pishyar Forum Chair April Cox-Abboud Membership Co-Chairs Roy Nouhra and Nima Faqihi Communication Chair Nita Maru Finance Chair Raed Siddiqui Accelerator Chair Bilal Alibhai Strategic Alliances Sanjay Narang

Enterprise Agility Awards 2014 OF THE YEAR

In recognition of the highly active community of entrepreneurs, the first annual Middle East Enterprise Agility Awards: Entrepreneur of the Year presented by du, will take place on October 13th, 2014 in Dubai, UAE. Jumeirah Beach Hotel NOVEMBER 4, 2014

ENERGY

RETAIL BANKING

STARTUP OF THE YEAR

ISLAMIC BANKING

AVIATION

INFORMATION TECHNOLOGY

HEALTHCARE

BANK OF THE YEAR

CONSTRUCTION

VENTURE CAPITAL

HOSPITALITY

PRIVATE EQUITY

RETAIL

LOGISTICS

EDUCATION

FASTEST GROWING

CONSULTANCY

INSURANCE

LIFETIME ACHIEVEMENT

REAL ESTATE

Enterprise Agility Gold Ally

Nominate an Enterprise Agility Achiever Email awards@bncpublishing.net detailing your candidateâ&#x20AC;&#x2122;s name, industry category, and a short description of their demonstrated business agility

www.EntrepreneurMiddleEast.com

OCTOBER 2014

Entrepreneur

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

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.

How Great Leaders Think: The Art of Reframing Lee G. Bolman & Terrence E. Deal In each organization, it can be said that one of the most critical aspects is who is heading up the ship. Tomes have been written and countless seminars staged on instilling and demonstrating strong leadership at every level of the management chain. Authors Bolman and Deal analyze things by breaking down different types of leadership, and the mistakes and the successes that top dogs can make. This is not an easy or a quick read- this reviewer would

How the World Sees You: Discover Your Highest Value Through the Science of Fascination Sally Hogshead The widely repeated “perception is half the battle” was and is pretty accurate- in the professional world, perception can affect how well you fare across the career board. Using the “science of fascination”, this author has endeavoured to find out what makes some things utterly forgettable and what makes others pop culture phenoms. In addition, Hogshead applies the same principles to helping the reader

Entrepreneur

OCTOBER 2014

see how they are perceived by others, and how to improve that perception (up to and including “unlearn boring”). Under all of the examples and humorous writing in How the World Sees You, there are solid ideas and suggestions that actually help the reader. Give this book to the staff member who may not understand that they are regarded as slightly off-putting.

venture to say that it is one of the most in-depth examinations of the subject available in the current professional book market. There are plenty of examples and figures in How Great Leaders Think and at times, in order to apply them to the chapter being read, the reader may have to take a minute to go back and examine the passage followed by the figure. Gift this book to both leadership trainees and current senior management.

SmartCuts: How Hackers, Innovators, and Icons Accelerate Success Shane Snow In a rapidly evolving world, traditional solutions may no longer be the best ways to do things. This is the thought that Shane Snow is looking to convey in SmartCuts- and in some ways he succeeds. To be sure, the author still extols the virtue of hard work, but he is somewhat adamant that working hard isn’t necessarily working smart. Using several examples -this reviewer’s favourite is definitely in the epilogue- Snow illustrates how lateral thinking and “hacking the ladder” can

make your success happen sooner. In addition to advising on lateral thought processes, Snow is an advocate of mentorship but it is somewhat unclear if it is a limited style of mentorship or a full on mentor/student relationship. The flaw here appears to be that the author is not taking into account generational thought differences, and therefore doesn’t realize that not everyone will be comfortable applying his advice. A great read for younger members of the work force.

Act Like a Success, Think Like a Success: Discovering Your Gift and the Way to Life’s Riches Steve Harvey This is not the typical book one would ask their staff to read, but it’s worthy of your time nonetheless. Entrepreneur, comedian and author Steve Harvey became a success through sheer hard work, and more importantly by serious self-examination of his own life, goals and wants. The valuable information in Act Like a Success, Think Like a Success isn’t meted out in platitudes, nor even in the back story of the author. It’s transmitted via the tools the Harvey

provides to ensure that they make the best use of the advice he is sharing. In this self-help book, there are incredibly useful tactics for those who feel themselves floundering in a corporate position that has left them disenchanted. The reader only has to be willing to apply his methods for self-examination to see a result that may be surprising. This is the book for those of you that might be better off somewhere else (and just don’t know it, yet).

Oscar Pistorius hints at upcoming book

OSCAR PISTORIUS IMAGE © MIQU77 / SHUTTERSTOCK

midst the notoriety, Oscar Pistorius, convicted of culpable homicide in mid-September, is considering publishing a book. According to reports, the book will be about his side of what happened on the night Reeva Steenkamp was shot at his home, and the stirring murder trial that followed. Johannesburgbased attorney Martin Hood told The Guardian, Judge Thokozile Masipa’s ruling “sends out a very negative message that you can kill someone and claim it was a mistake and get away with it.” The verdict baffled both her family and the public at large, and soon after, Pistorius’ manager and agent Peet van Zyl told the Observer on-record that the athlete

Oscar Pistorius at the athletics meeting in Milan

has “discussed” writing his own book. Speculation is rife that the book could be financially-motivated, since the sixtime Paralympian’s legal fees may have substantially depleted his resources. The book, if Pistorius goes forward with it, will most likely cause an uproar and be seen as an effort on Pistorius’ part to exploit the tragedy for personal gain. It’s an echo of the O.J. Simpson case, the football player accused of murdering his ex-wife Nicole Brown and her friend in 1994. Simpson later published If I Did It, a book hypothetically describing how he would have gone about the murder (had he done it). The Pistorius trial reconvenes on October 13th for the sentencing.

OCTOBER 2014

Entrepreneur

TREPONOMICS

ETHICS | ESQUIRE GUY | SKILLSET | MARKETING | PRO

It’s all about staying horizontal Four marketing methods that weren’t relevant 10 years ago (that you can no longer ignore) By Kareem Chehayeb

he digital age has been an incubator for all sorts of effective PR techniques. Though PR methods tend to change based on various consumer and behavioral trends, we’ve seen one major shift in communicative PR develop over the past decade: it has changed horizontally. Compelling your audience to support your product or service takes more than just having an interesting product; they want to know more about you, your team, and what goes on behind the scenes. Playing the mystery card and tossing out seasonal press releases just doesn’t cut it anymore in the age of sharing (and oversharing). Here are four tools and techniques that wouldn’t have been part of your marketing repertoire 10 years ago.

sending a global-staff email informing them he’d be late for work. It resulted in a hilarious (and super viral) post about the staff of BuzzFeed worldwide and their reactions to his glitch. People will tend to support a product if they can connect with the real people behind it. If your team is traveling to a convention

in Muscat or Berlin, people who can’t attend want to see your team set up the stands and shut them down. It’s about as horizontal as it gets. I wanna watch you do cool stuff

A catchy video ad will always be important and relevant; if it goes viral on YouTube or the lesser-utilized (but extremely important) Vimeo then you’ve struck Internet gold. But it’s not just that, regularly updating your videos on YouTube (or even Facebook) can maintain and increase your current following. There are many ways you can use video to your advantage beyond a conventional advertisement. The first thing that comes to mind is official demo vids. Whether you’re promoting an app, a phone or even a service, official demo videos are key. It’s one thing to put out a really nice image or video ad stating the different features of your product, but

Social media platforms did exist a decade ago, but they were a mere fraction of what they are today and they weren’t catering to businesses. MySpace was designed for individuals to make new friends and then quickly got picked up by the performing arts community (specifically those in the music industry), and Facebook was designed to connect with friends from school. While MySpace is a thing of the past, Facebook and Twitter (and more recently Pinterest and Instagram) are catering to businesses with enterprise-friendly layouts and functionality. Your business has basically come alive so to speak. Audiences are engaged by not only reading reviews or facts about your product or service, they want to learn about what your corporate culture is like and who the people are on the ground. It’s about who is involved in making the product (and not just the CEO), what their office spaces look like, and even what goes on among the staff. A great example is a BuzzFeed post about one of their employees mistakenly 60

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OCTOBER 2014

BuzzFeed article © BuzzFeed.com

Living the social media life

Their videos on YouTube venture further than famous Elixir users demoing their strings. They have videos that teach people how to restring their guitar and keep their instruments well-maintained.

Elixir Youtube acoount Youtube.com | Bayt.com blog Day in the Life

I app-solutely agree, count me in!

people want to see how it works behind the fancy editing and the Photoshop work- you can go beyond that. I’ll use an example that’s close to home: Elixir guitar strings. Elixir’s key selling point is that their strings are coated with a material that prevents the strings from rusting in a short period of time, hence a better tone and longer life. Their videos on YouTube venture further than famous Elixir users demoing their strings. They have videos that teach people how to restring their guitar and keep their instruments well-maintained. Of course, they use Elixir strings and tape those videos at Elixir workshops and factories. And yes, the person in the video discusses their role with Elixir briefly and mentions which Elixir workshop is taking place, but they’re giving the user –their target audience- so much added-value with their useful approach to engaged marketing. Let me tell you a story… on my blog

Like social media platforms, blogging did exist 10 years ago but it was still in early development stage- and it wasn’t directed at businesses. Many people resorted to blogging on MSN Spaces (now Windows Live Spaces), where they talked about their traveling experiences and why Fallout Boy’s Pete Wentz used the best eyeliner. Businesses at the time opted for their primary .com or .net

website with all the basic info, and if people wanted to know more they’d call the contact phone numbers. That has obviously changed, and I’m not just talking about Pete Wentz’ level of relevance. Many businesses, especially those that provide a service of some sort, are incorporating blogging into their official corporate communication strategies. It doesn’t have to be related to their product; it could be their views on changing market and consumer trends or their take on some recent developments in the industry. An excellent example of this in the region is Bayt.com, an employmentoriented platform for the MENA region. Their blog posts range from tips on using their portal to advice to help you nail your job interview. I even read a blog post about how to boost your staff’s morale. Our Editor was featured in their Day in the Life section along with a multitude of other industry professionals- Bayt.com’s work is interesting and it drives web traffic. I’d also include research reports and infographics under this category. Marketing agencies these days may put out a seasonal infographic about consumer trends or developments in a particular market. While this might not be as directly communicative as one might assume, revealing info from your research shows that you trust your user base and that you’re more or less willing to start a dialogue with them.

Businesses developing brand apps is something that is becoming more pervasive. It makes sense as more people are spending time on their smartphones and tablets for functions that they’ve previously executed exclusively on their laptops. Many apps for brands have useful features like recent updates, interactive maps to locate a branch, and more. You can really play with this one, depending on the type of business you’re in. F&B brands can have apps that allow you to order food to your current location without calling, and perhaps a retailer can allow users to check the availability of certain items, to see whether they are out of stock or not. An interesting example? The Pampers “Hello Baby Pregnancy Calendar” mobile app. Giving consumers more ways of accessing your product or service is a great way of keeping them coming back for more. Users looking at their tablets and smartphones and seeing your company’s logo on a daily basis will definitely keep them closer, and perhaps even turn them into advocates. In our Tech section, read an overview on the state of mobile apps for brands with Born Interactive CEO Fadi Sabbagha.

OCTOBER 2014

Entrepreneur

IN PICTURES

#ENTStartupPR

taged by startup Melltoo at Dubai’s in5 Innovation Hub in Knowledge Village on September 25, 2014, #ENTStartupPR was a two and a half hour crash course on everything from crafting the right introductory email to professional image advice. Entrepreneur MENA’s Editor in Chief Fida Chaaban was invited to give an interactive seminar on the basics of dealing with regional press,

Entrepreneur

OCTOBER 2014

and how to best choose mediums to get a message across to a desired target market. The lively conversation touched on appropriate social media platform use, industry tactics, and relationshipformulation strategies. Attendees live-tweeted highlights of the evening’s talk, so if you’re interested visit the hashtag on Twitter to see the user-generated play by play. We’ll see you next time, startups!

PHOTOGRAPHY BY TAMARA CLARKE

Startups get a crash course in media relations

OCTOBER 2014

Entrepreneur

THE SWITCH

Wingsters Dubai Marina

Bite-sized business

Ahmed Hassan is winging it as a first time ‘trep in F&B

hmed Hassan, the founder of Wingsters in Dubai Marina, says that he was always interested in the F&B industry. “I’m a big foodie, and from a young age I always had a keen interest in cooking. I would spend time with my mother while she was cooking for the family. During university, I learned to cook dishes from other cuisines and enhanced my experience, tastes and palette by travelling and understanding more about ingredients.” After graduating from Kingston University with a BA Honors degree in Business Management and Finance,

Entrepreneur

OCTOBER 2014

Hassan joined HSBC Bank, later moving to Bloomberg LP to specialize in Middle East equities and sales. “I then moved to a boutiquetrading firm to spearhead their operations in the MENA region. During the financial crisis, I moved to Dubai to join Thomson Reuters as an Equity Transactions Manager. I then took on a challenging role as Regional Manager for a German algorithm analysis/ trading solution provider and was mandated to set up the regional office and run the operations.” Hassan, an Iraqi who spent most of his life in the U.K., says that despite his finance career he always

had the urge to open his own restaurant. Where did the idea for Wingsters originate from? “One of my favorite food items are chicken wings, so when I moved to Dubai five years ago I was shocked when I found out there were very few places that had it on the menu,” explains Hassan. He says the few places that did offer the finger food on their menus weren’t doing it very well, and they certainly didn’t specialize in the popular fast food. “I naturally became a huge foodie in Dubai, exploring different cuisines in this vibrant city filled with a diversity of cultures and tastes. I would follow

good food whether in a five star fine dining restaurant or a small hole in the wall. I became known among friends and colleagues as the go-to person to suggest places to eat for different occasions. They also kept telling me

Ahmed Hassan

Wingsters Godfather wings

that I should open my own restaurant. This made me more serious about looking into it and I started doing my research.”

With signature dishes named after cult characters of the underworld like Al Capone, John Dillinger, Don Corleone, and Lucky Luciano, you’re able to guess what theme the brand’s identity is built around. As a child, Hassan says that he wanted to become a chef, but with traditional Arab parents, “the typical doctor, engineer, and lawyer options were presented to me. Luckily, I was able to avoid those professions and opted to go down the business and finance route, as I knew it would help me later in life to develop my passion.” With signature dishes named after cult characters of the underworld like Al Capone,

John Dillinger, Don Corleone, and Lucky Luciano, you’re able to guess what theme the brand’s identity is built around. Clever marketing and an active social media presence has helped Wingsters gain traction. The restaurant is very active on Instagram, and while they do have Facebook and Twitter accounts, they use both of the latter mediums primarily as a relay channels for their Instagram posts. They are heavily engaged with their online followers, often reposting user-generated content. On their website, Wingsters has an onsite challenge of sorts called “The Initiation”. Guests of Wingsters who enter as contestants must eat “eight suicidally spicy wings in four minutes and then endure a five-minute afterburn”. Once you’ve mastered the heat under the watchful eye of either Hassan or an onshift manager, your picture is placed on the Wingsters “mobster wall of fame”. The menu, a selection of salads, starters, burgers, desserts, shakes, and of course wings, keeps to the overall theme. A select few items can be personalized –the burgers have a slew of add-on options- and the rating scale for sauce heat playfully asks, “How much of a Don are you?” Eat-in,

take out, and delivery options are all available, and the tag line, “Say hello to my little wings” appears to have taken off since several social media posts by guests quote it of their own accord. As an entrepreneur, Hassan admits that things are markedly different than being in the corporate ranks. “You have to become your own support structure, and then [be a support structure] for your own employees. You’re responsible for every small to large thing that happens. You work longer hours and give up your social life.” During the research and development phase of his concept, Hassan says that persistence was key. On the ground PRing of his idea helped Wingsters become more real to him, and drove him to push it to fruition. Some tips for ‘treps looking at launching an F&B outlet? “Always make sure the research of different elements is done well prior to conducting them, write an effective business plan as you’ll refer back to it to make sure you’re on track, and take precautions to safeguard yourself when dealing with various contractors.” This first-time ‘trep didn’t seek the help of F&B consultants, and doesn’t find it a misstep: “I knew what my vision was

and I followed that through. Although I did ask a lot of questions wherever I went to learn as much as I could.” In terms of guidance, he says that he has a number of mentors with “different specialties”, referring to it as an important part of his growth.

Wingsters Escobar Burger

In hindsight, Hassan says that he wishes he followed his instincts “and started this restaurant a long time ago. As for everything else, it’s a learning curve and I’m grateful I experienced it, as the learning and experience I’ve gained is priceless.” While Dubai was his first choice to execute his entrepreneurial idea, this entrepreneur has plans for a future venture in London.

Wingsters exterior

OCTOBER 2014

Entrepreneur

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

2. Necromancy Your “dead

uncle” is active on your Facebook page. We’ve all pulled the “dead uncle” card when calling in absent for work. Unless the dearly departed is a character from Twilight or is the world’s first real zombie, your boss will not be happy to see him active and liking your posts! 3. Crying wolf If you

Social media is a double-edged sword in the workplace Five (valid) reasons to decline your boss’ Facebook friend request By May Rostom

t’s a lazy Friday morning and you’ve been watching movies in bed all day, then bam: A friend request pops up… from your boss! You keep thinking of all your previous posts and how bad it’d be if your boss sees them, then start to think how awkward it would be when you attempt to explain why you haven’t yet done the add on Facebook… The latter beats out the former and you decide that snubbing your superior just isn’t worth it, so friend request accepted. This point right here is basically kissing your career advancement goodbye. Here are five reasons why you shouldn’t cave.

If you decide to take a “sickie”, then you’d better be sick because posting photos at the beach instead of sipping on some hot soup at home will land you in hot water.

Entrepreneur

OCTOBER 2014

1. IRL/AFK Your boss will know when you’re online on Facebook (and pretending to work). Most of us spend around two hours on Facebook during work hours (admit it, you know you do!), and the last person that should know that is definitely your boss.

decide to take a “sickie”, then you’d better be sick because posting photos at the beach instead of sipping on some hot soup at home will land you in hot water. If your boss ever catches you lying (which is bound to happen), they’ll never believe you again.

4. Dirty laundry Facebook

is super personal; your boss will be privy to everything that’s happening in your life. From changing your relationship status, to being hung over on Saturday morning after last night’s hard partying, your boss will know every single detail of your personal life. At some point you might even forget that they’re on your friends list. 5. Self-censorship You can’t complain about your job, totally defying the whole purpose of Facebook in my

opinion. No more posts about your insane workload, your boss’ idiosyncrasies, gossip about your nasty co-worker or the rampant unprofessional conduct of your colleagues. Don’t even think about complaining about your salary, because it will suggest to your boss that you’re either a) bad with money or b) digging for a raise. Your boss will know when you’re online on Facebook (and pretending to work). Most of us spend around two hours on Facebook during work hours (admit it, you know you do!), and the last person that should know that is definitely your boss.

If you’re ever caught up in the dilemma of having to add your boss on Facebook, simply redirect them to LinkedIn explaining how you don’t like to mix personal and business lives. It’ll be awkward at first, but it’s not as bad as having to explain the drunken bar star moments captured in tagged pics. If you, like so many people, opt for the acceptance and limited-profile tactic, remember that your boss can tell that you’ve restricted their access- that too is a catch-22. You’re damned if you do, and damned if you don’t!

CULTURE

business unusual | LIFE | TRAVEL | DESIGN | TRAPPINGS

Friends with(out) benefits MIXING BUSINESS WITH PLEASURE

Working with, for, or as a friendly favor By Maria-Elena Kassab

t is often said that friends are the family we choose for ourselves. And while that may apply to nearly every aspect of our lives, with friends providing support, laughter, and unconditional love, the ties that bind friends together can become strained, and sometimes break, when confronted with something we’re all eventually called on to do: work. It might seem a good idea at first, working with our friends– we imagine the complicity, the fun, the sweet life we will lead if we ever hit it big. But reality is not as utopian as the images our imagination comes up with at the start of such a venture. While some friends make amazing business partners, and go on to make millions that they spend together as best friends forever, it is not always the case. Working with friends, working for friends, and working as a favor to a friend can come with pitfalls, difficulties, huge arguments, and even tears. Let’s talk about mixing business and pleasure. Things risk going sour when you call out the boss on something as a friend, but in front of other employees. It goes sour when the boss doesn’t treat you as well as your colleagues for fear of nepotism accusations

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a colleague in the same field as you calls to ask for a favor. You see, they took on too many projects and can’t complete them all, so they need you to help them out. The only thing is, it’s for their friend. Working as a favor for a friend can lead to new business contacts and broaden your horizons, but it can also embitter your friendship when you have to work for a lower rate. Your friend agreed to it, and later it gets tough when you have to tell your friend to ask their friend to please pay you because it’s been a year, and your friend

Friend or foe

When you and your friend both get accepted to work in the same place, it starts off magnificently. Commuting together! Lunch breaks together! Meshing ideas together! Fight for one promotion, together! Competitiveness has proven efficient in stimulating creativity and pushing people to work harder for their goal, but sometimes working at the same company (or even in the same field) as a person you once considered closer than a sibling can place a strain on your friendship as you compete to one-up each other. Friendships moved to the workplace can suffer from passive-aggressive moves, boredom of seeing each other in every facet of your lives, and the destruction of your relationship as one of you tramples the other to get a project, a promotion, and a better deal. Top-to-bottom approach

When your friend is starting a business or launching a new endeavor as part of an existing company, it is tempting to agree to working as an employee under their direction. You think you’ll be familiar with the way the boss thinks, you won’t have to suffer through the anxiety

of making a good impression, and you’ll bring the positive elements of your friendship to work to enhance the entire experience. But things risk going sour when you call out the boss on something as a friend, but in front of other employees. It goes sour when the boss doesn’t treat you as well as your colleagues for fear of nepotism accusations. It goes sour when something at work affects your personal relationship, and you start arguing about it during a common friend’s dinner. And it goes sour if the venture fails, and you’re stuck with your disgruntled friend-slash-former-employer-slash-formeremployee (who might even still owe each other money and apologies). Do me a solid

“I don’t know how to say this…” is a common phrase you’ll hear when a friend or

starts making excuses for their friend or calls you impatient. It gets weird when you slip up and whine to your friend about how demanding, ridiculous, and cheap your new client is, and they take to defending their other friend and chastising you. I’m not saying that working with friends is a complete disaster every single time. I’m not saying that you can never work for a friend, and that favors for friends are categorically terrible ideas. I’m just saying that the benefits of friendship can sometimes disappear when work is involved, and that, sometimes, your friends and your work life should not mesh. In any case, if friends are like your family, think about this: would you really want to work for your crazy great uncle or bring your impossible, whiny cousin to work with you? No, you wouldn’t.

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Fine-tuning technique and delivery The five “knows” to public relations prowess By Carol Matta

here do you see yourself in five years? This is a question that we’ve all been asked over and over again. I remember getting frustrated every time someone asked me that. I didn’t know what career path to choose; I mean let’s face it, how can you know what you want if you haven’t experienced everything? I did know this, though: to succeed tremendously in any field, passion is the primary required ingredient. I define passion as that powerful feeling of enthusiasm that we all have inside of us driving us forward.

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Luckily, I found out what my passion was after starting my first job at a public relations agency almost 10 years ago. It gave me a rush! Every day was a new day, and everything was so fast-paced that snoozing really did mean losing. Looking back and looking at the now, that motto has not changed, it’s actually become much more relevant for me. We’re still saddled by the fact that the industries of communication and public relations (PR) are largely misunderstood by the majority of people outside of it (and even some inside of it). The lines between advertising, marketing and PR are somehow blurry. Once you really get into PR, you’ll realize that you’ve got it wrong: A PR specialist is an image-shaper and their main task is to build, maintain, and continually offer appropriate exposure for the brand (or figure), ensuring flattering publicity across various mediums available at that particular point in time. It’s not advertising, and although a lot of people still confuse these two very different exercises, it’s very important to firmly convey the two distinct activities of these professions. Consider that advertising is paying for space with controlled content, and that PR is offering publicity through earned media. This means that you influence media figures to cover relevant stories about you, your brand or an issue, so that the story has more credibility when read by the public because it was independently verified

by a trusted third party rather than purchased placement. This leads us to the most important question: How can a PR practitioner succeed and stay ahead of the game in this extremely hyper-driven and saturated market? Here are the top five “know” insights that I’ve gathered throughout my 10 years of experience that I believe played a huge role in achieving the desired outcome for the corporations and figures that I’ve worked with. 1. Know your audience

I cannot begin to explain the amount of emails and information media receive on a daily basis- the amount of people they meet, the number of calls they receive. It’s overwhelming. The last thing you want is to be that person sending a beauty editor news about the tallest building in the GCC! This is automatically a recipe for failure, and wave your credibility goodbye! Know your contact person in-depth, build a strong relationship that is not just a one-hit wonder collab. Meet them often and get to know them; get to know their work; find out their likes and dislikes, interests etc… This definitely doesn’t happen overnight, so take as much time as needed to speak their language. Work towards becoming that top of the mind kind of person that others want to get in touch with when opportunity arises. Top-notch interpersonal and communication skills are essential!

Your choice of words when conveying a message can either make you or break you. It’s important to know what to say, how to say it, and when to say it. Time is one factor that every person in this industry wants more of; make sure to be straight to the point when pitching or when sharing content and info. 2. Know it all

Make time to stay on top of current events and up-to-date with the industry news, the competition, developments etc... Read, listen, watch- do whatever you can to become well-informed. Being a knowledgeable person automatically makes you an interesting person to speak to, broadens your web of contacts and connections, and of course will make you better at your job and much more credible. Remember that knowledge is an investment, and it pays the best interest. 3. Know what to say

I’m a strong believer in the tremendous power of words. Words give out energy and a message, acting as catalyst for a reaction in others. Your choice of words when conveying a message can either make you or break you. It’s important to know what to say, how to say it, and when to say it. Time is one factor that every person in this industry wants more of; make sure to be straight to the point when pitching or when sharing content and info. This last point ties into timeliness- disperse the relevant info at the right time. No one wants to be that person known for talking just for the sake of talking with no valuable content to impart! Do share with others, but most importantly listen to what they want. 4. Know the digital world

The ever-evolving digital world and the social media space definitely plays a huge role in building stronger relationships with others. It is a win-win tool for journalists, PR professionals,

and influencers. It can be used as a social tool to simply stay in touch or to share information with others quickly. No matter what the objective is behind your interactions, it’s important to get trained on the different pervasive social platforms, use them very often, and most importantly to be active long-term. 5. Know your creative side

I refuse to start with the phrase, “Think outside the box.” I don’t believe that there’s a box to begin with; there are no limits when it comes to creativity and that’s the beauty of it. Information is constantly coming at us from all sorts of communication channels. In order to stand out and make an impact, we have to compete with that massive wave of info overload and capture people’s attention. This is where creativity plays a huge role. Coming up with impactful campaigns or ideas or stories to carry a message is an essential factor to spark that buzz and leverage awareness. It’s essential for PR professionals to up their creative game through various methods- this is where you take matter into your own hands and seek out new inspiration. I often think back to Brian Tracy’s thoughts on PR- as one of the foremost figures in the arena, he’s a great source of knowhow for us all. “Communication is a skill that you can learn. It’s like riding a bicycle or typing. If you’re willing to work at it, you can rapidly improve the quality of every part of your life.” Carol Matta was born and raised in the UAE and studied at the American University in Beirut. Matta kicked off her Communication and PR career in Dubai over a decade ago, and has worked at multinational PR firms, handling various clients ranging from luxury beauty, consumer goods, technology. In addition, Matta has consulted corporations and events management companies on how to best execute brand-relevant launches. Today, Matta is behind developing the communication and PR department for one of the foremost professional international beauty brands where she is responsible for all communication and PR-related activities on a local, regional, and international level covering over 10 countries.

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The heat is on! Five lessons I’ve learnt from meeting (and missing) deadlines By Pamella de Leon

have a love-hate relationship with deadlines. Often, it’s a motivator to get excellent work done, sometimes it instills the fear that keeps me up at night- not finishing on time or worse, not having anything to submit at all. It’s a process; on some days I make my deadlines… and on some days I don’t. Nevertheless, I’ve picked up a few tips on managing my deadlines.

1. Start right away

Rather than letting the assignment evolve into a looming threat, pounce onto the passion you get when you have a new project, idea or client. Oftentimes, we get so caught up in researching, brainstorming and mulling things over that the anxiety to create something great builds up. Just start right away, even if you’re making small amounts of progress

every day, it’s still progress and eventually you’ll get there. Think you’re a creative who can’t be tied down by time? Consider what renowned American art director (considered the original Mad Men), George Lois had to say on the subject: “Show up, sit down and get it done.” 2. Focus

There’s so much draw to multi-tasking as a way to do

it all at once, and we try to do everything all of the time. As different projects come in, various tasks pile up and you try to be on top of it all. Before you know it, the day is over and you realize you’ve only been putting effort into tasks half-heartedly. Just look at how Jack Dorsey, CEO of Square and co-founder of Twitter juggles working fulltime at both companies– he’d schedule themes for both companies everyday such as management issues on Mondays, products on Tuesdays, and so forth. If you have two or three projects at a time, focus on one. When you feel your motivation burning out, switch off to another assignment. Instead of focusing on too many things at once, block off time out of your day to work on one project with intense focus. No distractions and definitely no social media! Oftentimes, we get so caught up in researching, brainstorming and mulling things over that the anxiety to create something great builds up. Just start right away, even if you’re making small amounts of progress every day 3. Prioritize

The same way that focus is integral, prioritizing is essential too. If you’re just ticking things off your to-do list without order, your important tasks might get shoved aside. Determine the urgency of your tasks to figure out which requires most priority. Emulate the essence of Brain Pickings’ Maria Popova, the “interestingness hunter-gatherer and curious mind at large” who reads through hundreds of things a day (yes, a day!) to produce the best content for her blog. One thing we notice from her hectic schedule is the importance of prioritizing her blocked time for particular tasks such as researching, writing, and even meditating. 70

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As your work progresses or if you’re stuck on a problem, don’t be afraid to show what you have so far and ask for help from your teammates, boss or even client.

4. Set a cushion time

Plans rarely go as smoothly and according to what you set out, so it’s always wise to assign a buffer time in case plans go awry or you need more time before or after a task or the big deadline. Break down the project into smaller tasks and before the cutoff point, schedule a day or two to give yourself a breather to review your project to allow for delays or last-minute changes. U.S. President Barack Obama is a fan of scheduling buffer time– he sifts through work late in the evening, so that he can spend time with family the next morning before heading to the Oval Office to start his day.

Caturday? Only in Russia

Russian bank offers a free cat with mortgage

e still, my feline-loving heart. Till December 14, Russian bank Sberbank will let the first 30 mortgage customers choose among 10 breeds of cat, delivered later to their new home. Yes, cats. The bank is capitalizing on a Russian superstition that it’s good luck to let a cat walk into your new home before you move in. Their Cat Delivery Service website features a promotional video of excited clients receiving their cats. Homeowners should prepare for

their hearts to be broken though, two hours after they have a chance to enter the new home property, the cats are returned to Sberbank according to The Moscow Times. Sberbank published their second quarter profits claiming a 13% climb, with consumer lending 11%. More incentives might be needed as Russia’s central bank raises their interest rates, with Sberbank increasing most mortgage loans to a minimum of 12.5% (Bloomberg Businessweek).

5. Feedback

You don’t have to be the hero who can do everything without help. As your work progresses or if you’re stuck on a problem, don’t be afraid to show what you have so far and ask for help from your teammates, boss or even client. In a 2013 TED talk musician Amanda Palmer brought up “the art of asking” and encourages people to ask for help to let go of insecurity and shame. And it’s true, it’s better to know beforehand you’re off the wrong foot to keep yourself on track, rather than find out at the end that you’ve gotten it wrong.

Mom creates Ignore No More app to force kids to call back

There you have it. The struggle is real, but deadlines are good for motivating us to keep going. Rather than spending late nights and missing social events to catch up on pending work, start right away and relish the thought of how awesome it is crossing off these projects on your lengthy to-do list. Before the deadline, of course.

One mom has had enough of the frustration with her children constantly ignoring her calls. Sharon Standifird, a mom from Houston, Texas who previously served in the Gulf War and climbed Mount Kilimanjaro, created Ignore No More- an app that works by locking down a kid’s smartphone until they have called their parents back or contacted an emergency line. No calls to friends, no checking notifications on Snapchat, no games, until they call the parent back. Currently available on Android for $1.99, an iPhone version is presently being developed. We wish parents luck on the challenge of getting ahold of their children’s devices long enough to download the app and get it activated. We can’t wait to see what software whiz kid will cook up to counteract it.

Kids ignoring your calls?

OCTOBER 2014

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IN THE LOOP Life as we know it? Water vapor discovered on Neptune-sized planet

Catalonia President Artur Mas

Catalonia president sets sights on secession vote Now that Scotland’s referendum has failed, we can move on to the next separation movement. Spain’s autonomous region of Catalonia has been struggling for succession for quite some time, recognizing itself as a separate nationality with Catalan as its main language. Setting nationalism aside, Spain’s economic crisis has given them another reason to secede; their austerity measures have led to more riots and instability. President Artur Mas of the autonomous region has been pushing for secession since late 2010. He recently signed a decree that a referendum will be held on November 9th to determine the fate of Catalonia, much like last month’s Scotland referendum. The decree was put into place after Catalonian lawmakers voted 106 to 28 to authorize a referendum. Spanish Prime Minister Mariano Rajoy’s reponse? It’s illegal. Spain will do anything not to lose Catalonia- after all, it contains some key industrial areas and the touristmagnet city of Barcelona.

Scientists have discovered water vapor on a Neptune-sized planet located 124 light years away from Earth. It’s the first exoplanet outside our solar system to show signs of water, hinting at the possibility that we are not alone in the universe. The term exoplanet, also referred to as an extrasolar plant, is a planet that doesn’t orbit around the sun. Scientists consider Earth as proof that “life requires the presence of carbonbased molecules, liquid water and an energy source” (NASA). Think about it, if we can discover water vapor on other planets, we have a stronger lead on where to search for more possibility of extraterrestrial life forms. The exoloplanet HAT-P-11b orbiting in the constellation Cygnus was discovered using a technique called the transit method.

Exoplanets are analyzed and studied through light absorbed by the planet’s star as the planet passes in front of it, allowing astronomers to conclude the planet’s characteristics since it can’t be examined with a telescope.

Billionaire tech tycoon Larry Ellison steps down as CEO of Oracle

arry Ellison, co-founder of Oracle Corporation, recently announced that he would be stepping down as CEO- a role he’s held since the company’s inception. Ellison will become Executive Chairman and CTO while his former role will be shared by Mark Hurd and Safra Catz. News of the shift rocked the internet, but this isn’t exactly cause for mourning since Ellison’s life has all the elements of a feel-good underdog story. He was placed with adoptive parents at nine months-old, dropped out of college

to pursue entrepreneurship and then reportedly bootstrapped his startup with US$1,200 of his own money. Despite the challenges of his early life, his tenacity to go against the grain helped Ellison shape Oracle into one of the world’s largest database and software businesses. The 70 year-old corporate titan ends his admirable 35-year run listed as Forbes third wealthiest man in America and the fifth wealthiest person in the world with a fortune of $52 billion. -By Tamara Clarke

Larry Ellison

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Tarek Koudsi is fluent in web speak

Startup Hashdoc could be your company’s next digital resources hub By Kareem Chehayeb

he business world always gets a little more interesting when new ingredients are tossed in the mix. There are two things that occur to me immediately; first of all there’s crowdfunding, which has challenged conventional means of financing projects (and lately real estate), and can taking existing endeavors to a whole new level. The second is the open source movement, which is likely to have more drastic implications in the long run. I chatted with Jordanian ‘trep Tarek Koudsi, founder of Hashdoc, an open knowledge database that players in the business and entrepreneurial fields need to check out. “I come from a technical background,” says Koudsi, “I grew up in a family of computer engineers, and I’ve been hacking code since I was eight.” The secondgeneration techie started a degree in Information Systems and Management from Brigham Young University in Utah, and worked in multiple sectors for 12 years. Before Hashdoc, Koudsi was involved with brokerage 74

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houses, the public sector and consulting stints with three of “The Big Four”–he’s worked with Deloitte, KPMG, and PrincewaterhouseCoopers- and he realized something that eventually led to the creation of his startup. He noticed that large consulting companies have what he calls an “internal repository of business documentaries that empowers their employees. It provides a boilerplate for deliverables on the projects that they’re working on,” noting that they enhance productivity

Tarek Koudsi, founder of Hashdoc

and efficacy. But here’s the catch; Koudsi realized that tons of money has been spent on resources that can easily be found on the internet for free. “Witnessing that over the years made me wonder why can’t there be a similar platform that’s open all over the world, where freelance consultants or boutique consulting houses can benefit from its [existence],” and according to Koudsi a “goldmine” of documents that aren’t within reach outside of the dominating companies. He im-

“The main difference is that we have a defined scope. And our scope is business/enterprise, meaning that you cannot put e-books or e-magazines for example.” mediately clarifies that he’s “not replacing consultants,” but claims that “there are a lot of boilerplates available on the net that regular marketing officers or enterprise professionals are not aware of.” Not aware? In the internet age? That’s almost like being unable to solve a basic math problem with a calculator right next to you. He cites two main reasons for this: the professionals’ lack of skills in advanced web searching, and that many (if not most) of these documents end up in the “deep web”, making them difficult to access. That’s the problem that inspired Koudsi to create Hashdoc, and he hopes it will become a hub of a knowledge and resources that can be accessed in a simple and user-friendly manner. He describes Hashdoc’s functionality and relationship to the current market eloquently: “We’re not inventing a new market,

but we’re just tidying up and organizing an existing one.” What does that entail? Making these resources more accessible and available to people who aren’t part of the large consulting firms. Hashdoc is targeting three segments from across the relevant industries. The first segment, “consumers”, are described as “regular professionals”. An example of a consumer would be a marketing officer in a large enterprise trying to find resources to help them with a project. The second segment, “document publishers”, have two sub-categories: “those who are solely in the business of producing business documents,” and those that release periodical or seasonal documents,

but aren’t solely document publishers. This is especially common in many marketing departments that put out reports about different consumer trends. Koudsi mentions that many of these documents are released as infographics, which has been trending on the web for a while. And finally, Hashdoc targets freelance consultants and boutique consulting houses. He claims that they benefit by looking for resources to help them complete their tasks, and to promote their own work, meaning that Hashdoc can act as somewhat of a networking resource to find clients. Having a clear and relatively narrow target audience means that unlike similar platforms, content

will be well-defined and thus more organized and easily accessible. This sets them apart from other websites that allow users to upload documents of any form. “The main difference is that we have a defined scope. And our scope is business/ enterprise, meaning that you cannot put e-books or e-magazines for example.” A quick skim of Hashdoc, and you’ll find all sorts of interesting resources that are relevant to a number of topics, from social media and consumer trends to finance, accounting, and operations management, mostly in PDF files but Excel spreadsheets and PowerPoint slideshows are on there as well. How do Koudsi and co. make sure that Hashdoc’s docu

ments don’t go beyond their defined scope? “Technically, people will be able to upload whatever kind of document, but that depends on three things we use for curation.” Hashdoc’s staff are always on the lookout for ill-fits, and their users being able to report documents they find unnecessary or inappropriate. They also have an algorithm that “reads” the document being uploaded and detects the nature of its content. Despite my interest in the open-source movement, I always felt a bit skeptical about certain aspects of it, especially the ability of users to falsely claim ownership of content or upload without owner-permission. Koudsi says that problem was a “classic issue” and has been taken into consideration during their design phase. “One thing we focused a lot on is having a claiming mechanism,” that allows the document owners to claim the relevant content, eventually allowing them to decide whether they’d like to remove it or not. The portal also allows users uploading documents to credit individuals or organizations that took part in creating the work. “Hashdoc was ‘launched’ in August 2012, but I wouldn’t even call it a launch,” says Koudsi, “we just keep growing and adding more features.” There was no official announcement about Hashdoc going live, instead “we just went online with a few functions.” The founder says their growth strategy has been successful thus far, “breaking records” with more visitors engaging with its content “on a

“We’re not inventing a new market, but we’re just tidying up and organizing an existing one.” OCTOBER 2014

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weekly basis.” They have yet to spend any money on marketing, “capitalizing on SEO and the virality of our content.” To my surprise, the team behind the startup is minuscule. Alongside Koudsi are Software Engineer, Rand Muhtaseb, and Content Manager and Social Media Marketing Officer, Rawan Mehyar. They sometimes bring in freelancers to help with routine tasks, but they have no plans to expand the team until they secure another round of investments. Hashdoc’s complexity required a lot of capital and resources. And Koudsi admits that they were fortunate early on: “We had one institutional investor and one angel investor [in Silicon Valley] that got on board in December 2012.” Koudsi also successfully pitched the idea of Hashdoc to Oasis 500, a MENA startup accelerator program. He eventually began a strong relationship with two U.S.-based investors: angel Investor Amjad Afanah and VC Namek Zu’bi, who both understood and expressed interest in his concept and its potential. In hindsight, Koudsi regrets not injecting more capital and effort into marketing, saying that technical improvements held them back, which was

a tedious task. What about social media? “Nothing.” Nothing? “It started with someone checking out one of our documents and sharing it on Twitter.” Hashdoc is not just relevant to the Middle East, nor is it solely targeted to this region, and over “60% of our traffic and engagements come from the U.S.,” followed by the U.K., Spain, Singapore, India, and the Philippines. Going forward, he has tons of plans in store. “The product that’s up there right now is about 50% to 60% of our vision. We’re eventu-

ally going to allow people to edit documents, revise them, request them, and that’s all on our backlog.” As a selfproclaimed “pre-revenue startup”, he’s also been looking at various options at monetizing without having to resort to ads, admitting he’s a “design freak” and that advertising ruins the overall intrinsic value and experience of the database. Two of the business models he’s looking at include the popular freemium model, where paying a fee for a premium version gives users access to more features, as well as the marketplace

model, which gives options for owners to charge people for their documents. Nothing is confirmed, as Koudsi is concerned about impacting the general experience of users. He’s also hoping to convince more freelance consultants to use the site, and to upload and promote their own work. Does he plan on reeling in Arabic documents? “We’re language agnostic. Our primary language is English, but we won’t stop anyone from uploading documents in other languages,” adds Koudsi pointing out that that there are some Spanish, Italian, German, and even a selection of Arabic documents available on the site already. Does Koudsi speak the language of the internet? Hashdoc seems to be fluent, and that’s probably why this founder’s open source ideals are a great fit for the web.

“It started with someone checking out one of our documents and sharing it on Twitter.” Hashdoc is not just relevant to the Middle East, nor is it solely targeted to this region, and over “60% of our traffic and engagements come from the U.S.” 76

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Goal-oriented ‘treps

think

big Startup Linkagoal uses social networking to make it happen

By Kareem Chehayeb

“

reate, link, contribute. These three words best encompass Linkagoal.” This is how the startup’s founder, Mohsin Shafique and co-founder, Nasir Jamal responded when asked about their business. This duo is passionate about their social networking tool, and believes that it is just what entrepreneurs and aspiring industry leaders need to achieve their goals.

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So does Linkagoal stand out in the market? As a “goal based social network” Shafique and Jamal think it does, claiming that they’ve seen other goal-oriented websites but nothing in the form of a social media platform, adding that the USPTO [United States Patent and Trademark Office] approved their patent. Linkagoal’s team has 20 people, “with local presence in Silicon Valley, Toronto and Karachi.” In terms of educational background, the co-founders have the usual startup formula: business and tech degrees. Shafique earned his Masters degree in Computer Science from Karachi University, and Jamal holds a MSc in Financial Management from Middlesex University in London. How does Linkagoal work? “Firstly, it’s a goal writing platform,” and the goals range in type, but it’s clear that the most popular ones have to do with forming businesses or expanding existing ones. “Secondly, it connects people on a social platform with common goals and aspirations.” This, in my opinion, is the bread and butter of Linkagoal. It’s the social networking aspect. Through this aspect of Linkagoal, aspiring ‘treps can find potential partners, colleagues, and advisors for their project. For example, a software engineer trying to start an interesting app could find just the right guy to handle their finances or marketing. “The third aspect is My Goal and your accomplishment… something that someone wants to do today that has been accomplished by another user already. Shared experiences help in achieving goals faster.” Linkagoal’s co-founders have added guidance and mentorship aspects to their service, which is not often seen on social networking platforms. I can imagine this being helpful with all types of goals, and it is worth delving further into. On the portal, you’ll also find a few goals that have nothing to do with enterprise like learning a new language or trying to quit smoking. There were of course a few funny ones (notably the user with the goal of making a billion dollars). Setting up this platform wasn’t easy: “It took us three and a half years to reach the current design; since there was no pre-written script, the product kept evolving through various designs.” The co-founders also mention struggling to come up with a simple platform with features that they desired to see in action. Shafique and Jamal also

Mohsin

Nasir

Shafique have a few other Jamal difficulties that they’ve faced (and are still facing)they’re still trying to match Linkagoal with the right market, maintain good cash flow, and make sure that things don’t get too complicated as they grow. Finally, they also sometimes go through creative blocks when figuring out innovative functions they can add to keep Linkagoal fresh. The startup was also quite a financial burden to get off the ground, costing the duo US$250,000 to “develop and launch” the product, and product developments are still underway. You can probably get a good idea of what their balance sheet looks like. Given the number mentioned regarding spending on R&D, it is no surprise that 70% of their funds have been allocated for that purpose. The remaining 30% goes to marketing. “Our short term social media strategy is SEO, SEM [search engine marketing] and DMM [data management marketing]. We are also very active on Twitter, Facebook, YouTube, LinkedIn, and Google+.” ROI? They haven’t worked on that just yet. “Our plan is to solely focus on product development, brand awareness and user acquisition right now, and to implement our revenue model by mid 2015.” They are projecting “a 10 times return for our investors by 2017.”

Even though Shafique and Jamal already have a ton on their plate, there is still more to come from Linkagoal. They’re currently working on a tablet and mobile app for iOS and Android phones, and they’re expecting a release by Q4 of this year. Their short and long-term plans are big- they’re “ambitiously setting our targets as going bigger than Facebook in the next five years, building a unified goal based social networking experience for professionals and non-professionals, bringing socio-economic balance in society through online technologies, and entering enterprise marketing space by 2016.” They’re also hoping to hit 150,000 registered users by December of this year. These co-founders are nothing short of goal-oriented!

OCTOBER 2014

Entrepreneur

start it up

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

Sharing is caring Egypt’s PieRide wants to reduce traffic by sharing a ride in style By Pamella de Leon

Three’s company PieRide co-founders

Karim Elmansi, an MBA graduate with a background in technology consulting, currently heading up the company as CEO. Elmansi focuses on operations, technology, and product development.

Maie Elzeiny, whose background is in helping social entrepreneurial ventures kick off, is the CMO focused on marketing and customer acquisition.

Rami Halim, with a background in business and strategic consulting, acts as the CFO whose role is centered on strategy, finance and business development.

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OCTOBER 2014

n Cairo, you can choose to use underserved public transportation or get stuck bumper to bumper in traffic, while you’re surrounded by onepassenger cars. According to a study by World Bank, passenger cars accumulate 55% of the Greater Cairo Metropolitan Area roads, with the average speed being between 6 to 25 kilometers per hour during peak periods. Determined to be the solution to the unbearable traffic problem, PieRide is a subscriptionbased, door-to-door, ride sharing service. The startup provides crowdsourced, trained drivers with vehicles to shuttle customers to their daily destinations with other customers (one to two commuters max) within their community, sharing the ride and travel costs. It’s cheaper than a taxi, offers a stress-free commute, and lessens the environmental impact of traffic congestion. Sounds good, but this model already seems familiar; in Egypt there’s Nile Taxi and Tawseela, plus Careem and Uber. How does PieRide plan stand out among the transportation startup crowd? Karim Elmansi, PieRide co-founder and CEO, points out that although there’s overlapping of concepts, there are different elements at work.

Elmansi says that Nile Taxi is considered a complementary service rather than a competitor, and as for Tawseela, “our model crowdsources cars and is a door-to-door [service], rather than one that might require meeting points.” Uber and Careem don’t pool customers together, so they don’t offers ride-sharing. So how does this work? Being a community-based service, PieRide matches customers with people within their own communities, and allows users to rate drivers and passengers, building up a “trust capital.” Customers

are paired by destination and “in a way that minimizes wait time and maximizes car utilization.” Most importantly, passengers can customize their trip by specifying gender, nonsmokers, and more. In terms of drivers, PieRide takes a leaf out of the UberX book by contracting drivers with their own cars to reduce cost, and to encourage employment opportunities. Potential drivers go through various stages of interviews, and training on defensive driving and communication skills, as well as being evaluated by previous customers during their probation period before their final hire and car inspection. Ultimately, both cars and drivers are subjected to the rating system.

Currently, the co-founders are talking to various angel investors to raise series-A funding. Incubated in Flat6Labs last year, PieRide received their seed funding that supported the launch of PieRide pilot phase in September 2013, in addition to securing funding from Jordan-based Oasis500. Their development and testing stage started with accepting how much they didn’t yet know, prompting them to “experiment with the formula” before settling on one of their many initial projections. “We had to strike a balance between confidence and the humility to acknowledge what works and what doesn’t. We changed and pivoted many times over and we made

“We had to strike a balance between confidence and the humility to acknowledge what works and what-not.”

sure we stop and reflect on [what we] learn.” PieRide’s revenue stream comes from a monthly subscription fee paid from the beginning. In just a few months, PieRide is cash flow positive and their valuation has increased to six times in less than a year. It’s reflected in their market penetration and feedback too; their user-base consists of women and “young affluent” commuters who are tired of traffic congestion. Ten months in, the reception to the service has been positive, most notably on customer satisfaction

scale, quality of drivers, and user community. There are interested customers and drivers looking for jobs too, quite a feat considering they’ve been relying on mostly word-of-mouth. What’s next for the startup? “We are experimenting with a number of products that would take advantage

of added efficiency and pass on the savings to the client,” explains Elmansi. PieRide has a “new web technology” in the works to make the service easier and more accessible to clients, and a mobile app will be launching soon. Time to grab a slice of this pie, Egypt!

OCTOBER 2014

Entrepreneur

Asteco targets entrepreneurs with bespoke sales and leasing

franchise model Entrepreneurs from around the region with a passion for the real estate industry have a new business opportunity with the unveiling of a unique franchise model by Asteco, the Middle East’s largest independent full service real estate company. The 30-year old industry leader is unlocking access to its three decades of market expertise for aspiring entrepreneurs as well as targeting independent realtors and small to mid-sized real estate brokerage companies looking to boost their business credentials. Aimed at companies and individuals eager to diversify their existing businesses, or launch a start-up in what is undeniably a highly competitive industry environment, the new Licensing Services division is the first-of-its-kind in the region. “The launch of the new licensing services division will allow

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OCTOBER 2014

us to further propagate the strength of the Asteco brand, image and reputation through an aligned franchisee network, delivering a successful tried and tested sales and leasing brokerage model by trusted and capable partners,” says John Stevens, Managing Director, Asteco. “Franchising is becoming an increasingly popular model around the world, as the only locally established, full service real estate business offering such a unique and bespoke proposition we fully expect interest to be high; and we have already received numerous requests,” he adds.

Established in 1985, Asteco has witnessed incredible growth in the last three decades, and has built a strong regional presence with a network of offices in Dubai, Abu Dhabi, Sharjah, Al Ain, Jordon and Qatar. Potential brokerage franchisees will be able to take advantage of a raft of benefits and support services with direct tailored access to the Asteco brand including setup assistance, bespoke operating areas, regional brand visibility and unrivalled access to an enviable sales and leasing portfolio, predominantly appointed on sole exclusive mandates, that listed in excess of AED 2.1 billion’ worth of sales properties and 1.5 million square feet of leasable space in 2013/14. “What we don’t do is simply provide a gateway to the market and a database. We have a 30-year pedigree that is underpinned by a reputation for professionalism at every turn, and so we will be supporting our franchisees at every level with 24/7 online marketing support and help in developing an achievable growth strategy also part of the package,” notes Stevens.

“We want our franchisees to be up-and-running from day one and our tried and tested systems and procedures are the back-end engine to support customer-facing activity which encompasses custom-built website capabilities through to our highly efficient multiple-listing service,” he adds.

Asteco also expects a high percentage of franchise applications to come from switched-on Gen Y-ers looking to get to first base in the real estate industry, and this is where Asteco’s support network will really come to the fore, as Stevens explains: “Many of today’s real estate brokers weren’t even born when Asteco was founded 30 years ago, and many more have no conception of the UAE real estate sector prior to freehold sales to expatriates. “We know our business model works, our record speaks for itself - over 7,000 units sold in the last few years alone, generating over AED12.8 billion in revenue.”

As the world of real estate brokerage becomes ever more complex, with industry professionals required to stay on top of local market legislation, new marketing concepts and applied technology, the concept of operating a service sector business under an established brand becomes even more compelling. The licensing model also provides partners with a high value referrals service and access to Asteco’s dedicated intranet service – the GRID – which contains the latest news, best practice manuals, brand guidelines and policies and procedures. This is backed by exclusive use of industry-leading real estate software and the company’s CRM platform with additional support in the form of a telephone helpline and face-to-face communication. “We also provide access to our regular Asteco News Roundup and quarterly/half-year property reports for specific markets, which are invaluable resources for any real estate professional looking to gain a competitive edge in the marketplace,” says Stevens.

The only locally established, full service real estate business offering a bespoke franchise opportunity, the new licensing services division is another string to Asteco’s industry bow as one of the region’s few true industry ‘all-rounders’ delivering a range of services including asset management, sales, leasing, valuation & advisory, sales management and owners association. According to franchisechatter.com, the success rate for franchises is 91%, versus typical small businesses at just 42%, but Stevens says that, for Asteco, success also comes down to an applicant’s personal passion for the business, as well as several other criteria. “This is a market-first for Asteco, and moreover for the industry in the region, and we are looking to develop franchisees who are equally passionate, service-oriented, commercially astute and credible professionals; working with them to grow their own businesses with our brand presence in what is one of the most dynamic, challenging and fastest developing markets in the world,” he concludes.

For more information call us on +971 600 54 7773 or email licensing@asteco.com | www.asteco.com

OCTOBER 2014

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money

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

Making dirhams, dollars and sense count

Business license Making use of free zone options

Bootstrapping startups in Dubai By Sharene Lee

ubai is the fastest growing and most dynamic city in MENA today- it’s rife with opportunities for startups to build successful businesses, but it’s an expensive place to live and an even more expensive place to execute your enterprise model. Unlike Silicon Valley, startups here don’t have the option of working out of a garage or a dorm room. Like

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OCTOBER 2014

other businesses in Dubai, startups need to rent office space before being able to open a bank account, get a business license and in turn get a work visa to operate legally in the country. As the co-founders of Melltoo, a social network for buyers and sellers in the UAE, we’ve been there and done that and we’ve survived to share our tips on how to start up in Dubai for cheap.

Unless your startup physically sells goods in the UAE, incorporating in a free zone is the best option for a business license. You can opt for a freelancer’s license but this has limitations since you are only allowed one work visa. Another option is to apply for a “flexi-desk” which can subsequently be upgraded as your startup grows. in5 Innovation Hub at Dubai Knowledge Village (TECOM) is a governmentinitiated incubator that provides subsidized licensing and workspace as well as introductions

Unless your startup physically sells goods in the UAE, incorporating in a free zone is the best option for a business license. You can opt for a freelancer’s license but this has limitations since you are only allowed one work visa. to mentors and investors. You can expect to shell out approximately (and possibly over) AED8,000 for license and rent for the first six months. The drawback is that there is a rigorous application process and startups have to be selected to join the program. Melltoo is part of the in5 program; in addition to the cost-savings, in5 has been a great place to network. We’ve been introduced to many important mentors and investors since being incubated. The Dubai Technology Entrepreneurship Center (DTEC) is scheduled to open at Dubai Silicon Oasis in early 2015. Co-working space here can be leased for under 12,000 a year, but these numbers do not include the various fees that are associated with completing the incorporation paperwork, including employer I.D. cards, bank letter requests and others. Interestingly enough, we discovered that

Dubai Technology Entrepreneurship Center (DTEC) scheduled to open at Dubai Silicon Oasis in early 2015

Soufouh; none of these are terribly cheap. The Melltoo team of nine has decided to keep our expenses super low by working out of our house in Ras Al Khaimah (RAK). First off, rent and living expenses are generally cheaper outside of the Emirate of Dubai. In addition, we installed a portacabin next to our house which we use for office space. The porta-cabin is large enough to house some of our team members who don’t normally reside in RAK. Some team members work remote for the most part, but come and do sleepovers every so often. Working from our living quarters has had unexpected

benefits. Firstly, there’s no commute, saving time and money. Secondly we’re immersed in our startup, and we are constantly brainstorming and feeding off one another’s energy. Lastly, the proximity of living and working quarters builds a rapport among team members- we’re more family than co-workers. For events and meetings, we use in5.

Melltoo is part of the in5 program; in addition to the cost-savings, in5 has been a great place to network. We’ve been introduced to many important mentors and investors since being incubated.

Melltoo interns at in5

different branches of the same bank were asking for different fees, so definitely shop around.

Melltoo RAK porta-cabin office

Office space Basing your business somewhere affordable

Co-working spaces are great, but they aren’t always ideal. Firstly, they are all situated in

The porta-cabin is large enough to house some of our team members who don’t normally reside in RAK. Some team members work remote for the most part, but come and do sleepovers every so often.

Dubai, so you’ll have a hard time commuting if you live in one of the other Emirates. Due to its popularity, in5 is crowded and growing your workspace there is not really possible, and DETC is yet to open. There are several other options, including The Cribb by i360 in Al Quoz, Impact Hub in downtown Dubai, and The Make Business Hub in Al

OCTOBER 2014

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money

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Promo materials Sourcing good quality supplies for less

In-house vs. freelance What and when to outsource

As startups, you should be resourceful and constantly keep an eye and ear on what’s happening around you. In the UAE, the souks are still a hive of commercial activity and where great deals on basic things like t-shirts and business cards can be found. “Little Bangladesh” in Ajman is a good place for decent quality screen-printed t-shirts and other customized clothing. We got our first 50 t-shirts printed up for AED6 a shirt, a steal compared to AED50 at Virgin Megastore. For business cards, most print shops in old neighborhoods like Bur Dubai and Deira will give you a good deal. However, you will be welladvised to get the graphic design done elsewhere because that is not their strong suit (see the next section on generic services for more on how to do this). This advice applies to other marketing paraphernalia too, such as roll-up banners for events and the basics like stationery.

Outsourcing generic services to freelancers can mean great cost-savings for startups. There are loads of things that we could do ourselves, but we don’t because the opportunity cost of our time is far too high. The three hours it would take me to design a business card are better spent working on product development. One word of caution though, freelancers need to be managed as you would manage brand new employees. Never assume they will understand something you take for granted because things are done very differently in different cultures. Instructions should be crystal clear and laid out step by step in a retrievable form if possible.

Melltoo screen-printed t-shirts

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OCTOBER 2014

Melltoo animated video explainer

For instance, we had our video explainer outsourced. Many screenshots were used in the video and we had to specify the exact screenshot we wanted in which scene and carefully label the graphic assets so that the outsourcing team could find everything easily to reduce the number of revisions. In addition, we would record screencasts with instructions and feedback for the outsourcing team. There are lots of freelancing websites out there. If you are looking for freelancers with local knowledge and skills, Nabbesh. Otherwise, our favorites are oDesk and Fiverr.

expat-dominated, there exists many meet-up groups organized by location and interests. Once you’ve found your audience, go out there and network. Melltoo was created to be the nextgen classifieds marketplace, Facebook for classifieds. So our audience is easy to locate, they are people who are selling their things using social media. And whenever we tell someone in this group about the Melltoo app, they thank us. That’s when we know we have the right target audience because they have the need for our product.

Marketing Small cities means captive audiences

Again, Dubai is a small place and the media is a good way to get your startup known quickly. Do not think that you need a public relations firm to represent you in order to get coverage. All you need is a good story. You should be able to tell your own story and if you can’t, then no one else can. This is important not only for PR but for investors and customers alike. Not everyone is a good writer, so find a freelancer to write up your press release. The next steps are important, search for articles about other startups or companies similar to yours. Make a list of the journalists who wrote these articles.

As rapidly as the population of Dubai is growing, it’s still a small (and rather intimate) city. Unlike large metropolitan areas like New York or London where groups of people are hard to nail down, it isn’t too difficult to locate your target audience here. As long as you know who they are, you should know where to find them. If you are targeting the tech industry, social media is the first place to look. This will provide your first clues to who your target audience is and where to find them in the real world. Because Dubai is

Public relations Telling your story

Connect with them through social media and write them an email explaining your story. Tell them the why of your startup before you get into the what. Keep it concise and ontopic; the point of the email is to get them interested, not to tell them your entire story. Get invited Startup conferences and competitions

Startup conferences are an essential part of learning from and participating in the ecosystem. It is also an effective way to introduce yourself to potential mentors and investors. However, they are not cheap and conference passes can run anywhere from hundreds to thousands of dirhams. In our experience, asking for a discount usually works. But even better is networking to get yourself invited. The Melltoo team was invited to the recent ArabNet conference held at the Palm Atlantis this past June. A venture capitalist from Riyadh paid for our US$1,800 passes to the conference. We first met him in Cairo, where we You should be able to tell your own story and if you canâ&#x20AC;&#x2122;t, then no one else can. This is important not only for PR but for investors and customers alike. Not everyone is a good writer, so find a freelancer to write up your press release.

were finalists at the annual MITEF Arab Startup Conference. Incidentally, that was an all-expense paid trip. Which brings us to startup competitions- another effective way to network and meet mentors and investors. Human resources Invest in training and cultivating your team

Because Dubai is an expensive place, you have to pay your employees fairly, and for experienced employees you need to pay a premium. Most startups cannot afford this. One option is to offer equity to entice talented people to take a pay cut to work with you. But not everyone will go for this. We chose to go a different way by hiring and training highly motivated interns who are willing to work in exchange for reallife experience in a startup. What this means is that you must offer them real value in return in the form of training and experience. Do not relegate your interns to pouring coffee and making photocopies, you must give them tasks that provide value for your startup and that provide a learning experience for the intern. Think about something you are doing that is essential that you can teach someone else to do. Thatâ&#x20AC;&#x2122;s what your intern should be doing. The key here is to recruit the right people. Existing skills are not important, attitude and

One option is to offer equity to entice talented people to take a pay cut to work with you. But not everyone will go for this. We chose to go a different way by hiring and training highly motivated interns who are willing to work in exchange for real-life experience in a startup. willingness to learn is what you should look for. Of course, if you do a good job training your interns, they will eventually become full members of the team. But as new career entrants, their expected compensation will still be lower

than someone mid-career or in senior positions. And if you did your job right, they will be as passionate about the startup as you and money will become secondary. Starting up in Dubai is anything but cheap. But as a bootstrapping startup, being resourceful has allowed us to cut some corners and reallocate our limited resources to more valuable uses. In the six months since we launched the Melltoo app, weâ&#x20AC;&#x2122;ve had over 30,000 downloads and we acquire about 350 new users daily. All this while working out of a porta-cabin in true startup spirit.

Melltoo at the MITEF Arab Startup Conference

OCTOBER 2014

Entrepreneur

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

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

Flexing some muscle Emirati ‘trep Yousuf Al Gurg has his eyes on the prize

urrently an architecture student at the American University in Dubai, Emirati Yousuf Al Gurg is well on his way to number-crunching his startup. “I plan to invest approximately AED1.5 million on Gravity Calisthenics Gym, and I expect to have a projected return of approximately 40% in the first year and cover the initial investment in around a twoyear timeframe. Once I have managed to secure funding from the bank, I expect the gym to be up and running within three months.” Al Gurg, a busi-

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OCTOBER 2014

ness hopeful, says that the idea for a calisthenics-centric facility came to him when he found accounts of people in the U.S. discussing the physical discipline. As he grew more interested in actually trying out calisthenics, he began to search for a gym or active-space in the UAE that offered it, and he was surprised to find that it wasn’t readily available. “I believe that calisthenics is a healthier and more enjoyable alternative to regular gym workouts. It’s a very attractive sport especially among youth, and

in a country like the UAE, which has a high rate of obesity and diabetes, I believe calisthenics can have a positive impact towards having a healthier society.” Is there a market for this particular athletic activity in the country? “Calisthenics has seen very rapid growth around the world recently. The three-day calisthenics workshop held in Dubai earlier this year was full on all days,” said Al Gurg. “Gravity Calisthenics Gym will also include an area to practice Parkour and Free Running. As the gym grows, I aim to include others sports that complement calisthenics as well.” To get started on his first entrepreneurial venture, Al Gurg went to Tejar Dubai for guidance, and for overall refinement of his concept. “Dealing with Tejar Dubai has been very helpful for me. Right from the start, they helped me fully visualize the direction in which Gravity Calisthenics Gym should be heading in, and they helped me make sure every detail has been taken into consideration,” explained Al Gurg. In addition, they also helped the startup founder land meetings with financial institutions that could potentially secure much-needed funding.

“I hope to establish the first location for the gym in Al Quoz due to the abundance of warehouses in the area, and its close proximity to many residential neighborhoods.” How does Al Gurg plan to spread the word once he’s gotten his business up and running? “My primary focus when it comes to marketing Gravity Calisthenics Gym will be social media, as that is the most effective way to connect to youth at this point in time. I hope to establish the first location for the gym in Al Quoz due to the abundance of warehouses in the area, and its close proximity to many residential neighborhoods.” Another strategic area Al Gurg has already addressed is forming brand alliances, an important factor that many beginner ‘treps overlook. “Earlier this year, a group from the World Calisthenics Organization came to Dubai for the first calisthenics workshop in the country. That’s when I met with them and discussed setting up a gym affiliated with them.”

World calisthenics organization webiste web portal

start it up

‘TREP TALK Q+A What is your current time commitment like to Gravity Calisthenics Gym?

What do you think IS the biggest challenge facing Emirati entrepreneurs?

I’m currently in the process of waiting for an approval, so it is very much a waiting game, however, I do spend an hour or two every day going through everything and looking for ways to improve. Once I have the gym functional, I do plan to distribute my time equally between my studies and managing the gym.

I believe that many young Emiratis have many great ideas for startups, however, many of them get caught up in routine life and these ideas never materialize. I do believe that the whole country is behind H.H. Sheikh Mohammed bin Rashid Al Maktoum’s vision; entrepreneurship is very visible among the Emirati youth and I believe that this is very beneficial for the UAE. The numerous programs like Tejar Dubai that are aimed at aiding youth play a vital role in making sure that these young ideas turn into reality, and I believe that it is important to make sure these programs continue to get the support they need. I believe that in a country with such a diverse international population, Emiratization plays a vital role. Local Emiratis do not make up the majority of the population, and Emiratization is very important in making sure that they have a role in their country’s development.

“The numerous programs like Tejar Dubai that are aimed at aiding youth play a vital role in making sure that these young ideas turn into reality, and I believe that it is important to make sure these programs continue to get the support they need.”

How do you stay motivated?

I try not to look at anything as a final goal, but rather as milestones. For every task, I have a specific aim. Once that aim is achieved, I will give it a day or two then come back and go over it all again to see what can be improved. No matter what it is, there is always a way to improve it. I try to never look at anything as perfect, there is always a way.

What process did you go through with Tejar Dubai?

To start with, I was actually considering starting the gym in partnership with other members. However, after discussing the idea with some friends and family members, they introduced me to Tejar Dubai and advised me that starting off with their assistance would be better than starting a partnership. My first meeting with Tejar Dubai consisted of me just generally introducing my whole idea to them. From there on, they helped me put together a proper business and financial plan, which I was to present to a panel from Tejar Dubai. After getting the panel’s approval, members from Tejar Dubai helped me finalize the business plan and set up a meeting for me with the bank to discuss funding. I would advise anyone considering approaching Tejar Dubai not to hold back. Even if your idea is still not as developed as it should be, Tejar Dubai have an efficient program that will help you develop that idea and turn it into a proper business.

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

OCTOBER 2014

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TECH

RAKBANK Mobile Banking App screenshots

Rad ride

McLaren’s limited edition 650S in MENA

Mobile money Regional banks warm up to device-oriented services and marketing By Tamara Clarke

evice mania is on the up and up across MENA. According to a study by PayPal released in late 2013, shopping on mobile is exploding in the region. Mobile transactions already represent 10% of e-commerce, but are predicted to reach close to 20% of transactions in the Middle East as the m-commerce market grows from 1.3 billion to 3 billion by 2015. If you can spend money using your mobile phone, shouldn’t you be able to manage it there as well? RAKBANK thinks so and they’ve enabled customers with the launch of MobileCash, a new service that gives you the ability to withdraw and send money to anyone in the UAE instantly using nothing but your mobile phone. The service runs off the RAKBANK Mobile Banking App platform and works with over 200 RAKBANK ATMs in the UAE. Al Hilal Bank has joined the mobile space too by recently integrating Snapchat into its cus-

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OCTOBER 2014

tomer engagement strategy. The bank plans to use the social media platform to provide customers with regular updates and share information on topics such as bank facilities, services, staff and events. Al Hilal Bank Snapchat screenshots

Automotive fanatics in the region will be excited to hear about McLaren’s Special Operations division’s modified limited edition MSO 650S model. The collector’s vehicle will be produced and sold on a very limited basis, after a concept car shown in China earlier this year made waves. Only 50 will be produced worldwide, and five of them will be available in the Middle East. So what makes the MSO 650S model special? The stunner is available in both Spider or Coupe body style, and in three different metallic paint finishes: Papaya Spark, Agrigan Black, and Sarigan Quartz with palladium-colored, 10-spoke lightweight alloy wheels. They’re four kilograms lighter than the standard-fit design, tightly held together by titanium wheel bolts. Inside the car you’ll find carbon black leather and Alcantara® all over. Sounds too good to be true? All you have to do to claim one of these is splash out US$355,185 for the Coupe model or $402,531 for the Spider.

OCTOBER 2014

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OCTOBER 2014

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