Business Insight July 2015

In partnership with

July 2015

People

ISSUE

nt Matter too

Environme People and the

16

bator Business Incu rs of The Key Drive

a Growth in Afric

s Success Seriee, CEO, Inmarsat Rupert Pearc Interview with

Telecommunication partner

Finance partner

Great News For Business In The UAE Success Series Interview: Sanjay Manchanda, CEO, Nakheel How Is Your Business Loan Application Evaluated?

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Editor’s Foreword

I

t is July already and the summer is in full swing, but that doesn’t mean we can’t be focusing on the job in hand.

KPMG have just released their report “2015 Global Change Readiness Index” that ranks the UAE at number 5 behind Singapore, Switzerland, Hong Kong and Norway in terms of its enterprise potential, quality of governance, people and civil society capability. This is great news for UAE as it is a proclamation to global Governments and business leaders alike, that the UAE is an opportunity not to be missed for businesses. For more on this report, please read our article on page 14.

We also have some amazing interviews in our Success Series. On page 20, we have Rupert Pearce, CEO of Inmarsat and if you turn to page 30, we have Sanjay Manchanda, CEO, Nakheel PJSC - both of whom give you their top tips and insight on being a CEO of global corporate companies.

Following on, with “Reflections on Middle East and Asia Investment into Africa” (page 43), we also haven’t forgotten that people are what make a business tick. Be it your employees or those in the area where your business operates (and the environment in which they live), all businesses should place careful consideration to this. We have therefore interviewed Sudhaker Tomar, Managing Director, Hakan Agro on the Corporate Social Responsibility Practices that his company have in place – Just to give you a little inspiration!

Publisher & CEO Liam Williams liam@flipflopmedia.ae Managing Director Harry Norman harry@flipflopmedia.ae +971 4 369 9062 Business Development Executive Paul Davis info@flipflopmedia.ae +971 04 369 9061 Editorial Editor Tanya Selley tanya@flipflopmedia.ae +971 4 369 9063 Staff Writer Rachel Stracey info@flipflopmedia.ae Design Head of Design Mhar Delaben design@flipflopmedia.ae Operation Steve Miller Operations@flipflopmedia.ae circulation & Production Circulation and Distribution Manager Antonio de Marco circulationdm@flipflopmedia.ae

Enjoy!

Database and Circulation Manager Aaliya Khan databaseandcm@flipflopmedia.ae Production Manager Juan Vasquez productionmanager@flipflopmedia.ae

Tanya

Digital webmaster@flipflopmedia.ae

Talk to me at tanya@flipflopmedia.ae and let me know what information you need to take your business forward — and I will try to help you in the next issue.

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Registered at Fujairah Free Zone PO Box 26734 Dubai, UAE Tel: +971 4 369 9063 Fax: +971 4 369 8989 www.flipflopmedia.ae printed by CMS Printing Press LLC © Copyright 2015 FlipFlop Media All rights reserved While the publisher has made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

July 2015 Cover Great News for Business in the UAE Success Series Interview: Sanjay Manchanda, CEO, Nakheel How Is Your Business Loan Application Evaluated?

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July 2015 | 3

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Contents Foresight

Legal

Page 14 - Great News for Business in the UAE Page 18 - 7 Strategies CIOs are Using to Drive Digital Transformation

Success Series

36 46

DMCC Section

Page 20 - Interview: Rupert Pearce, CEO, Inmarsat Page 26 - Interview: Rashed Al Qubaisi, General Manager, Al Forsan International Sports Resort Page 30 - Interview: Sanjay Manchanda, CEO, Nakheel

Money

Page 46 - The Future of Trade

Marketing & Advertising Page 50 - Modern Day Call to Marketing: The Android Context

Technology Page 52 - The New IP – Getting Started in the Data Centre

Page 34 - How is your Business Loan Application Evaluated?

Property

People Page 36 - Corporate Social Responsibility

Page 54 - The Workplace Renaissance

Business Incubator Page 58 - The Key Drivers of Growth in Africa Page 62 - Bonnington Hotel & Residences JLT Improves Coverage and Higher Bandwidth

52

58 10 | July

Page 40 - Wills In the UAE Page 43 - Reflections on Middle East and Asia Investment into Africa

2015

62 www.businessinsight.ae

expert panel

EXPERT PANEL Jonathan Hall Founder and Managing Director Mulverhill Associates

Caroline Jones Director Infopod

John Brash Founder & Chief Executive Brash Brands

Yogesh Mehta Managing Director Petrochem

Hind Abdulrazak Creative Director Audax Investment

Sara Abdulrazak Managing Director Audax Investment

Dr. Tommy Weir Founder Emerging Markets Leadership Center

Jeffrey Rhodes Founder & Managing Consultant Rhodes Precious Metals Consultancy DMCC

Louis Lebbos/ Founding Partner Astro Labs

12 | July

2015

Muhammed Mekki Founding Partner Astro Labs

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Office Suite 3001 PO Box 17317 30th Floor / HDS Tower / Cluster F / Jumeirah Lakes Towers / Dubai UAE Tel No: +971 4 448 4284 Fax No: +971 4 448 4285 Email: admin@willsuae.com Web: www.willsuae.com and www.twslegal.ae

Family Matters and Divorce

Wills, Inheritance Issues and Guardianship Issues

Recent statistics have shown that

Did you know that

zz

zz

zz

Probate Administration

Are you or any members of your

Administering an estate following the death

on the death of a husband, the

family thinking of establishing a

of a partner or family member can initially

has increased 40% in Dubai over the

surviving wife may not automatically

company in the UAE?

seem a simple exercise. However, the

past two years

be appointed as the legal guardian of

Did you know that any shareholding

process can quickly become complicated

the UAE has the highest rate of

any children under the UAE law?

that you have in a UAE on-shore or

and extremely time consuming. It may be

the Dubai International Financial

a freezone company is exposed to

the case that you simply require advice on

taking the first place in the country

Centre (‘DIFC’) has established the

a Sharia distribution in the event

the legal processes within the UAE or UK on

Dubai alone recorded 1129 divorces

new ‘DIFC Wills and Probate Registry’

of death?

the death of a partner or family member.

in 2012

implementing new succession and

Do you and your business partners,

Alternatively, you may feel that you wish to

inheritance rules for non-Muslims

or any members of your family,

instruct a firm of qualified solicitors to assist

with Dubai assets?

need a partnership agreement or a

in the administration of a specific asset, or

contract drafting?

the administration of an entire estate.

separation between married couples

divorce in the region with Dubai zz

Corporate Structuring

If you should ever require assistance

zz

regarding any family or divorce matters,

zz

zz

zz

TWS’s family law team comprises of British

The UAE Courts will adhere to Sharia law

and Arabic speaking lawyers, who regularly

in any situation where there is no Will in

Before you take any steps into business

TWS have considerable experience of

advise on divorce, separation, custody, and

place. If you live and work in the UAE, and

ownership you should fully understand your

dealing with the administration of estates

financial settlements in the UAE and UK

you die without having made a Will, the

options and understand the risks. When it

comprising assets in either or both of the

Courts. We also offer a mediation service

local courts will examine your estate and

comes to setting up a company in the UAE,

UAE and the UK, and can advise you on all

as and when required to assist you in

potentially distribute it according to Sharia

the question of where to establish your

of the processes involved from determining

reconciling your differences, or agreeing on

law where the distribution of assets are as

operation is dependent on your business

the assets and liabilities to ensuring that an

the best course of action for your family.

per fixed share ratios. It is also extremely

model. The first port of call should be to

estate is distributed to the rightful heirs or

important to make provision for the

seek legal advice and to be honest with your

beneficiaries.

Should you find yourself in circumstances

guardianship of your children in the event

advisor about what you hope to achieve

where you are suffering from irreconcilable

of death of one or both parents.

through the business.

TWS are suitably qualified to advise both

TWS can advise and assist you regarding the

Muslim and non-Muslim individuals on

structuring/re-structuring of your business or

the laws that apply to you in the UAE and

corporate assets through bespoke solutions

how you can protect your family and assets

in a number of offshore jurisdictions.

marital difficulties, we conduct divorce proceedings in the UAE and UK Courts.

through both the DIFC and UAE Courts.

Licensed by The Government of Dubai Legal Affairs Department, The Dubai Rulers Court and Registered with the Dubai International Financial Centre Courts’ Register of Legal Practitioners.

Wills – Guardianship - Family & Divorce – Corporate Services

foresight

Great News For Business In The UAE In the recent KPMG global 2015 Change Readiness Index (CRI) report, the UAE was a new contender, entering the top 20 at number 5. What does this mean for business in the country?

he UAE has emerged No. 5 in the KPMG 2015 Change Readiness Index behind Singapore, Switzerland, Hong Kong and Norway in terms of its enterprise capability, government capability and people and civil society capability according to a recent study by KPMG International and Oxford Economics.

“the CRI enables governments, NGOs and private investors to go beyond headlines, unravel this complexity and ultimately make more informed decisions” Adrian Cooper, CEO, Oxford Economics

The Index The index ranked 127 countries for their capacity to prepare for and respond to accelerating change brought about by natural disasters, economic and political shocks, demographics and new technologies. It provides a comprehensive global index ranking countries best equipped to respond to accelerating political, economic and social change.

Comments on the diversification of the UAE economy, together with the large scale infrastructure development that has been ongoing in recent years and set to continue in line with the Governments

14 | July 2015

T

vision for Dubai 2020 and beyond to secure improved transport, as well as the regional technological innovation that is using the UAE as a hub for business, have all been viewed contributing factors. The Index itself, provides verified research that is used by governments and private investors to make more informed decisions about the future in terms of investment and areas of business importance. This comes following the recent announcement that 2014 was the UAE’s strongest economic year since its foundation by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai.

The Important Elements “The CRI shows that there are no absolutes when it comes to change readiness,” said Timothy Stiles, Global Chair for International Development Assistance Services (IDAS), KPMG International. “A country’s wealth is certainly a contributing factor, but many countries compensate for lesser wealth with

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“The CRI is designed so that users can drill down in each of the pillars for an in-depth picture of a country’s performance for each capability, gaining an understanding of why some nations perform better than others, and what could be done to close the gap” Adrian Cooper, CEO, Oxford Economics

robust governance, a strong social foundation, and a positive business environment.”

Vikas Papriwal, Head of Markets, KPMG Lower Gulf said, “UAE’s non-oil sector has been growing rapidly, largely due to initiatives by the government to boost the private and government sector.

“The CRI measures business environment, government capability, including fiscal, regulatory and security aspects, and people and civil society capability, including civil society institutions, education, health and technology access – something that the UAE has successfully achieved over the past decade. Further, the government’s role in encouraging entrepreneurship and SMEs has played a crucial role in encouraging long-term economic development.”

The CRI was expanded to 127 countries for 2015, from the 90 countries included in the study’s 2013 ranking, plus a combination of additional developed and developing nations. The expanded selection of countries provides greater opportunity for comparison across regions and income levels.

16 | July 2015

In the 2015 Index, Singapore repeated its number one ranking from 2013, while Northern and Western European countries dominated the top 20 overall: 1. Singapore 2. Switzerland* 3. Hong Kong* 4. Norway 5. United Arab Emirates* 6. New Zealand 7. Qatar 8. Denmark* 9. Sweden 10. Finland 11. Netherlands* 12. Germany 13. United Kingdom 14. Canada 15. Japan 16. Australia 17. Austria* 18. Belgium* 19. Chile 20. United States *Countries that are new to the 2015 CRI

A number of lower income countries perform well in the CRI, demonstrating the benefits of effective policy and investment in compensating for lower levels of wealth.

“The CRI is designed so that users can drill down in each of the pillars for an in-depth picture of a country’s performance for each capability, gaining an understanding of why

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foresight

“UAE’s non-oil sector has been growing rapidly, largely due to initiatives by the government to boost the private and government sector” Vikas Papriwal, Head of Markets, KPMG Lower Gulf

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some nations perform better than others, and what could be done to close the gap,” said Adrian Cooper, CEO of Oxford Economics, who are a world leader in global forecasting and quantitative analysis for business and government, and evidencebased research. Headquartered in Oxford, England, with regional

centres in London, New York, and Singapore, Oxford Economics has offices across the globe in Belfast, Chicago, Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC, and employs over 130 full-time people, including more than 80 professional economists, industry experts and business editors. l

July 2015 | 17

foresight

Lead or get left behind

7 strategies cios are using to drive digital transformation by: Red Hat

a recent harvard business review analytic services survey found that companies bringing new digital skills to the enterprise experience more success than those that aren’t. key to this success is a cio with strong leadership skills and a passion for all things digital. these seven strategies are being used by cios at companies hbr labels “digital leaders” - organisations with both strong digital leadership and management - and can be the difference between your company leading the transformation or becoming a “digital laggard.’

1

3

Be the trust builder

CIOs at Digital Leader companies have close working relationships with other company leaders and are comfortable sharing control.

This builds trust, helping business leaders to understand and mitigate the limitations of their digital knowledge as IT spending and budget ownership shifts to business areas.

Go the extra mile to foster digital learning

Raising the digital skills bar is important to CIOs at Digital Leader companies, where 60 percent report having CIOs who are educating and empowering line of business leaders in digital knowledge. Additionally, 70 percent report having IT departments that provide useful knowledge to employees about technology.

2 Support business-led i.t.

Increasingly, non-IT business leaders are funding, contracting and/or developing technology capabilities. This doesn’t mean CIOs are ceding control; rather, they’re sharing it.

18 | July 2015

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foresight

4 Be the guide to which the enterprise turns

Business leaders wants their CIOs to better understand digital trends. At Digital Leader companies, CIOs are more likely to guide them.

5 Speak your audiences language

IT jargon can be a barrier to digital learning.

67 percent of IT departments at Digital Leader companies understand what is relevant to each business area and how to speak to their business peers about business activities and outcomes - in business language, not IT’s.

6 Tell the enterprise what’s possible CIOs at Digital Leader companies are more likely to understand the strategic possibilities in new digital trends. They help business colleagues understand which digital knowledge and skills need to reside in their function, and which they can leave to IT.

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7 Engage external experts to stay current Innovative new technologies emerge everyday.

CIOs at Digital Leader companies are more likely to engage with outside experts to address specific trends for different parts of the business.

July 2015 | 19

success

Success Series Interview:

Rupert Pearce CEO, Inmarsat

Rupert Pearce joined Inmarsat in January 2005 as Group General Counsel and, from January 2009 additionally held the position of Senior Vice President, Inmarsat Enterprises. He became Chief Executive Officer in January 2012

reviously, Pearce worked for Atlas Venture, where he was a partner working with the firm’s European and US investment teams.

He was previously also a partner at the international law firm Linklaters, where he spent 13 years specialising in corporate finance, M&A and private equity transactions. Having received an MA (First Class) in Modern History from Oxford University and won the 1995 Fullbright Fellowship in US securities law, studying at the Georgetown Law Center, he has been a visiting fellow of the Imperial College Business School, London, lecturing on the school’s Entrepreneurship programme, and is the co-author of Raising Venture Capital (Wiley). With such a pedigree - and a varied career – how did someone, who was previously a lawyer, make the change from law to business?

Pearce explains, “I trained as a lawyer, attending law schools in both the UK and the US, and spent thirteen years in private practice as a lawyer specialising in advising large international organisations on M&A and corporate

P

20 | July 2015

finance transactions. Then I moved into the venture capital industry, as a partner in a transatlantic VC which invested in technology-based high growth businesses, especially in the IT, telecoms and biotech sectors.

“In 2005, Inmarsat approached me to move across into the senior management team of a high growth technology company at an exciting time. I expected to spend two or three years gaining industrial experience, before returning to VC investment as a better-qualified investor. But I am still here and still enjoying my business life very much!”

How has your background as a lawyer helped you in your present role as CEO? My legal background has provided me with two life skills – firstly, the ability to analyse complex issues forensically and to break them down into their component parts, and secondly a powerful belief in collegiality and team work.

Lawyers bring intellectual firepower to complex commercial issues, and the partner ethos of private practice helps them thrive in organisations that value team work.

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success

What are the day-to-day challenges that you face and how do you overcome these?

A CEO of a public company is always juggling the short-term and the long term, as well as ensuring there is balance between the interests of staff, customers, shareholders and other stakeholders. Even more importantly, the CEO establishes and reinforces the culture and values of the organisation, setting them out, ensuring they remain relevant and helping staff understand why they are important and how they translate into successful business outcomes.

What do you believe the secrets to your success have been?

I have had a wonderful mentor, in the shape of my predecessor and current Chairman. I have also been blessed with a superb management team of highly capable, diverse and supportive colleagues.

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“What truly defines an organisation and an individual is how we deal with failure. We believe that risk is the flip-side of opportunity and that it is not possible to grow profitably without intelligent risk-taking. Even intelligent risk-taking means that occasional failure is normal. What is vital is that we learn as much as we can from any such failure, that we do not engage in blame or scape-goating, and that we quickly come together as a team to fix any problem and to take steps to turn failure into a new opportunity. That’s called being entrepreneurial” Inmarsat’s evolution from assisting the shipping industries to branch out to other sectors is well documented. What is the thought process behind your decisions to move into these territories? What are the main points that you as a CEO would want considered before you took the business in that direction?

We look at our core skill sets and capabilities and we seek to leverage them into

new markets and new opportunities. This means being constantly open to evolving opportunities that are sufficiently close to our core markets that we can grow in relatively lowrisk ways. Shipping is our heritage and still our largest business area, but the core competencies we developed to serve that market – highly reliable, global satellite broadband services – proved to be translatable to other customers with similar needs in the aviation, government,

July 2015 | 21

success

media, enterprise and energy markets.

Now, with our next generation network imminent, we are seeing the opportunity to diversify again into new market adjacencies.

As your business is so technology focused, this would have brought on some very specific set of challenges (like a rapid changing technological environment). How do you plan for these changes?

We do indeed live in a world of rapid technological disruption. This means that we have to be willing to self-disrupt ourselves before others disrupt us. In this way, we must remain thought-leaders and innovate constantly.

This is challenging but also exhilarating. The key to successful innovation is two things – to root all innovation activity in the market knowledge derived from customer intimacy and to deploy open and collaborative innovation models that deliver successful outcomes for Inmarsat, our ecosystem of innovation partners and end-customers. The days of inwardlooking innovation in a vacuum are long gone.

What is next for Inmarsat?

Exciting times lie ahead for us. This year, we are confident of completing the launch of our third Global Xpress satellite, which will enable us to offer our new global superbroadband (up to 50 MBPS) network on a worldwide basis. Additionally, we are introducing our new solutions platform, Inmarsat Gateway, which will foster and fuel applications

22 | July 2015

“The CEO establishes and reinforces the culture and values of the organisation, setting them out, ensuring they remain relevant and helping staff understand why they are important and how they translate into successful business outcomes” and solutions innovation over our network with new partners. These two technology platforms are designed to deliver doubledigit revenue growth in the years ahead, alongside our Inmarsat-4 network which will be repositioned for complementary growth.

Next year we will begin the deployment of our European hybrid satellite/air-to-ground network to deliver revolutionary aviation passenger connectivity services, and plan to launch a further Global Xpress satellite and initiate our next-generation L-band services programme (Inmarsat-6), so life continues to be very exciting.

Everyone makes mistakes in business.

Please explain one or two of your mistakes and how you resolved them.

My mistakes are too many to mention!

What truly defines an organisation and an individual is how we deal with failure.

We believe that risk is the flip-side of opportunity and that it is not possible to grow profitably without intelligent risktaking. Even intelligent risk-taking means that occasional failure is normal. What is vital is that we learn as much as we can from any such failure, that we do not engage in blame or scape-goating, and that

we quickly come together as a team to fix any problem and to take steps to turn failure into a new opportunity. That’s called being entrepreneurial.

Dubai is an entrepreneurial city, yet a surprising number of SMEs that I speak with do not have a business plan. Can you please explain the importance of a business plan, together with advising on a case study for your own business model that we can use to illustrate this to our readers?

A business plan is a road map for success.

It is about creating an agreed pathway for an organisation to mobilise and prioritise its resources to move forward together in a coordinated fashion to achieve success and to realise the organisation’s over-arching vision or mission. But, as they say, ‘no plan survives engagement with the enemy’ and as such no organisation should be unwilling to flex a business plan as it is rolled out and meets reality, change and the counter-measures of ones’ competitors. As such, a plan that is too rigidly enforced becomes a strait-jacket for the business and may lead to many problems, including the disenfranchisement of staff. The best business plans provide enough room for

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success

manoeuvre for staff to be empowered to take intelligent and energetic action in the moment, as they encounter complexity, change and situations that were not countenanced by the plan when it was written.

In business, whom do you most admire and why?

I greatly admire entrepreneurs who are brave enough to step outside their comfort zone and start new businesses that will change the world – it is inspiring to see their ingenuity and creativity, their courage to succeed against the odds and their stamina to see their vision through. I also admire the many talented managers and leaders out there who are not in glamorous, high growth market sectors but who nonetheless stay the course and bring their exceptional talents to bear on managing graceful decline or low growth incremental success. These are society’s overlooked heroes.

What is the one piece of stand out advice that you have been given during your career?

Not to confuse action with progress. We live in a world that both glamorises action and attributes the success of a company to its CEO. That leads to the temptation to be an, ‘action man CEO’. The reality is that it is often very important to let issues mature through proper reflection and consensus-building, as well as to understand that the timing of a decision can be as important as the decision itself. Sometimes the best action is inaction.

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“I greatly admire entrepreneurs who are brave enough to step outside their comfort zone and start new businesses that will change the world – it is inspiring to see their ingenuity and creativity, their courage to succeed against the odds and their stamina to see their vision through. I also admire the many talented managers and leaders out there who are not in glamorous, high growth market sectors but who nonetheless stay the course and bring their exceptional talents to bear on managing graceful decline or low growth incremental success. These are society’s overlooked heroes”

What is the one most important thing that you have learnt during your career?

Not to take oneself seriously and to respect everyone in the organisation, however senior or junior. We all, without exception, contribute towards success. But above all, to do one’s best and to recognise that, succeed or fail, that is enough.

If you could give an entrepreneur one piece of advice, what would it be?

Make room to spend enough time with the people who really matter in your life – your partner, your children, your family and your friends. You will only live today once. l

July 2015 | 23

success

Success Series Interview:

Rashed Al Qubaisi

General Manager, Al Forsan International Sports Resort Starting his career at the Yas Marina Circuit in 2009, Rashed Al Qubaisi became an integral member of the operational team of the first ever Abu Dhabi Grand Prix s an avid drag racer who holds a license from Frank Hawley’s Drag Racing School and the Senior Manager of the Yas Drag Racing Centre, Al Qubaisi was also sent to the United States as the UAE’s official representative in the Drag Racing Program. Coming back from this extensive training, he set up the Yas Drag Racing Festival in 2010, which was then honored as the Motorsport Event of the Year.

It was in 2012 that he came into his own when he was offered to join Al Forsan International Sports Resort as Deputy General Manager. For over two years, Al Qubaisi spearheaded of all the sports resort’s biggest events including the World Wakeboard Association (WWA) Wake Park World Championships, which has led to a

A

wealth of experience in the Marketing and Advertising side of the business. After demonstrating not just his undeniable dedication but also his inspiring vision for the resort, and the UAE as a whole, it was inevitable for him to be promoted as General Manager in 2014…

Can you tell us a bit about Al Forsan?

Al Forsan International Sports Resort offers worldclass facilities of an international standard, capable of hosting international events. As of January 2015, we have now waived entrance fees and parking charges encouraging people to participate and indulge in a healthy lifestyle more.

We aspire to become an internationally recognised worldclass sports and leisure destination for local sports talent and

“Facebook is also an extremely useful tool for us, as it gives us the ability to quantify the amount of people who ‘like’ Al Forsan, and track growth easily”

26 | July 2015

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success

sports professionals alike, as well as individuals, families and companies.

Al Forsan features five sports that allow both novices and professionals to take part in these great activities.

This includes a comprehensive Shooting Area and the Resort is the first in the Gulf to offer both Olympic Disciplines and Sporting Clays combined with handgun and rifle ranges. We also have a Water Sports area featuring the first cable ski lakes in the Middle East, an Equestrian Centre offering indoor and outdoor training arenas, and Motor Sports including karting and off-road karting. Al Forsan also offers themed paintball fields, which are enclosed in state of the art air domes, ensuring that even in the height of summer, players can battle it out in comfort.

The Resort also offers a full size football pitch, tennis courts as well as basketball and volleyball courts.

Additionally, culinary connoisseurs are invited to enjoy a rich range of dining options at the Resort with five specialty restaurants and lounges.

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“I think it is important for a modern businessperson to have a good understanding of the way in which social media works.

One can see comparisons between the workings of personal social media, and the workings of corporate social media.

This can be exemplified by the rise of ‘social media celebrities’ on YouTube for example, who have used their knowledge of populist topics to create their own brand identities” Al Forsan is pretty large sports resort, how has the adoption of digital marketing been?

Al Forsan like most of the companies in the UAE initially focused on traditional marketing while steadily adopting digital marketing.

We took safe steps by originally introducing the brand over Facebook with informative posts about the resort’s services and offerings.

Considering the high Twitter penetration rates in UAE, we implemented the platform to reach out to a wider audience and have received a good response from it. We have received really good feedback, as a number of our visitors have heard about the venue over Twitter. YouTube and Instagram was our move, as it helped not just tell about the experience a guest has, but also showcase this experience. The YouTube

channel and Instagram account have received great response, not just from audience in the UAE, but also from international sports enthusiasts. Our posts aim to not only promote the services but to build a relationship. Overall, the adoption has been a steady process that has been consistent with our whole marketing strategy.

What challenges have you faced trying to merge the traditional marketing of Al Forsan to today’s tech-savvy digital marketing?

Al Forsan has a quite unique position due its large audience appeal. The age range of our visitors ranges from 8 years old to 45 years old, and combines Emirati, Western and

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Arabic expat demographics. This hugely diverse target demographic means that a one sided approach to marketing the venue and events could never work, due to the popular methods of these audiences receiving and processing information. We therefore utilize traditional marketing platforms, mostly ATL such as outdoor and in venue production, to reach our more mature audience members and keep them abreast of our activities at Al Forsan. For the digital savvy younger generation we utilize an effective cross promotion between social media and digital platforms; such as Instagram, Twitter, YouTube and Google. The challenge has really been to find a medium between traditional marketing techniques and newer digital techniques.

What are the advantages of digital marketing?

One advantage of digital marketing is that we can more effectively monitor and analyse the engagement of our audience, including locations and best times of interaction, to make our evolving campaigns more effective. The other key benefit is engagement. We can respond to inquiries and in the few instances of negative feedback address this quickly and efficiently to maintain our high standards.

This means that in comparison to traditional forms of advertising, where trial and error was an intrinsic part of practice, we can now cut down our margin of error considerably which makes digital marketing more affordable, an important aspect to young a business. Digital advertising also has the benefit of being relatively timeless, as once we launch a campaign; it has a far longer shelf life than posters or television advertisements for example.

What are the disadvantages?

As digital marketing has such a wide reach occasionally we arrive at demographics that are not necessarily potential customers due to location, but even then, these ‘window shoppers’ will still gain subliminal knowledge of our brand identity.

Another disadvantage of digital marketing could be the

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“I am also excited at the constant growth of social media, and how it is bringing in a new age of communication, and with it a new age of marketing” need to depend on technology, which can be difficult for those who have always used traditional techniques. That being said, as this technology advances, so we can begin to trust it even further.

What trends in the marketing industry are you most excited about?

I find the constant access to video content across multiple platforms exciting, as we can truly bring the vibrant energy of Al Forsan to life in videos as opposed to potentially sterile text. The ability to create and share videos is a powerful medium, especially for us, as we believe what we have on offer at Al Forsan makes for very stimulating viewing.

I am also excited at the constant growth of social media, and how it is bringing in a new age of communication, and with it a new age of marketing.

How do you keep up with your competition?

When looking at the basic picture, we look into each sport where different venues offer similar activities, and so we try to keep in line with the pricing but produce a better service and offering. But when you look at the big picture, we believe we

have the largest variety of sport activities in one venue in the Middle East if not in the whole world. And that, I believe, is what sets us apart from the competition.

What would be your strategy moving forward?

As I previously mentioned regarding social media, we must keep on top of technological changes that could revolutionise the way that we do business.

We must watch trends in the sharing and marketing of content, as it could be of the utmost importance to us in future. We must also evolve as our audience evolves yet retain our brand identity and strong heritage.

Ultimately we must be flexible to new challenges and media outlets that come our way. ‘Try anything once’ is our marketing credo at Al Forsan. One strategy that we have implemented to help people engage in a healthier lifestyle, began in January 2015. In an effort to enable our clients to get straight into the activities, we have waived entrance fees and parking charges, with clients only paying for the activities that they wish to take part in. Competition regarding Internet marketing is huge, but as previously stated, we have little to no competition in the region.

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What would be the longevity of such tactics?

This open attitude means we will not find ourselves stuck in a marketing hole of our own making in the future and we will always be approachable to younger audiences as they themselves develop.

I hope that longevity will not be of importance, because we will constantly be changing to adapt our strategies to difference changes in the marketplace.

Personally, how active are you on social media?

I am an avid social media user, being very active myself, and I love to post my weekend adventures for my peers and friends to see. I take satisfaction in the thought that I can potentially energise everyone by showing him or her what I am doing! I think it is important for a modern businessperson to have a good understanding of the way in which social media works. One can see comparisons between the workings of personal social media, and the workings of corporate social media.

This can be exemplified by the rise of ‘social media celebrities’ on YouTube for example, who have used their knowledge of populist topics to create their own brand identities.

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“I would also say that determination is vital. If you wish to achieve a goal in business or indeed in life, you must put your whole heart into it and never give up until you reach it”

of people who ‘like’ Al Forsan, and track growth easily. Facebook also allows for a rating system out of five, in which we score quite highly. People can also leave reviews along with ratings, adding to the detail that we can take on board to improve our customer care and services that we have on offer. Youtube is a platform that should be an important aspect in the arsenal of every business. The ability to give a visceral and engaging piece of cinematic to your target audience allows for an added sense of engagement.

What is the best advice that you have ever been given?

My father Mr. Humaid Al Qubaisi, gave me a great piece of advice that I live by. He told me that work is always important, but family care should always be an essential aspect in your life.

Which social media platforms do you utilise?

I enjoy Instagram as I find the engagement more personal and the responses I get to my posts always seem to gather good momentum.

Facebook is also an extremely useful tool for us, as it gives us the ability to quantify the amount

What is the one piece of standout advice that you have learnt during your career that you would like to impart on others?

For anyone to start a new business, it is important to figure out your motivations.

You must look to others who came before you, assess their strengths and weaknesses, and most importantly, what motivates them to succeed. I would also say that determination is vital. If you wish to achieve a goal in business or indeed in life, you must put your whole heart into it and never give up until you reach it. l

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Success Series Interview:

Sanjay Manchanda CEO, Nakheel PJSCC

Born in Vienna and educated in India, Sanjay Manchanda the CEO of Nakheel PJSC started his career as an Associate with Pricewaterhouse (now PwC) in Muscat, Oman, rising through the ranks to become a Partner, before being seconded to Nakheel as a consultant to advise the company through its US$16 billion debtrestructuring program, which was successfully completed in August 2011. He assumed the role of CEO in October 2012, taking them in a new direction, whilst also being instrumental in realising the vision of Dubai hane Philips and Jaideep Singh (founder of CXO Alliance) speak to Mr Sanjay Manchanda – CEO of Nakheel, to find out more, during the CXO Alliance breakfast session held with the DMCC. “Having qualified as a Chartered Accountant from the Institute of Chartered Accountants of India, in my academic journey I have worked my way upward. I went to one of the finest colleges for commerce in India and was lucky as my family gave priority to my education.

“Interestingly, I had taken the CA entrance exam in India but failed in English Language and therefore could

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only pursue my professional degree in accountancy only after my graduation. My focus was to ensure that I can be professionally qualified to pursue a career and I am glad that I got the opportunity to do so.”

Just before Nakheel happened what were some memorable moments in your career?

I was an advisory Partner in PwC based out of Dubai, when we were approached to handle the re-structuring of Damas. This was a really challenging assignment that I had to lead from the front. The successful completion of the financial restructuring of Damas was a compliment to

“Having worked through the entire restructuring, I guess I earned the trust and confidence of Nakheel that resulted in my appointment as CEO in October 2012”

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the team effort that achieved the first financial restructuring of a private business in the Middle East.

Can you describe your journey from DAMAS to Nakheel?

After the success of the restructuring of DAMAS, PwC was invited by Nakheel (amongst other advisory firms) to provide a consultant on a secondment to perform the role of a CFO and also to advise on the financial re-structuring Nakheel was undergoing.

This assignment was challenging as this was my first stint in the real estate sector and the situation at Nakheel was very complex with a large number of creditors, advisors and stake holders trying to work to find an amicable solution to the myriad issues on hand. Different advisors/ stakeholders had different objectives pulling you in different directions. The challenge there was to remain focused and even though my role was that of an advisor, my day used to start early and sometimes end up in the wee hours of

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“After completing my first round of interviews with the Nakheel management team, I was called by the Chairman’s office to meet with him. During my discussion with the Nakheel Chairman, he asked me, ‘When can you start?’ To which I replied, ‘Immediately.’ That is when I was appointed as the CFO of Nakheel”

the morning, trying to first understand the issue on hand and then to find a solution that would be acceptable to all the concerned stakeholders.

It was a complex business environment and at the beginning of the assignment it was difficult to even decide where to start. However supported by other professional advisors and the management team, we were able to resolve, one at a time, most of the significant matters that had to be addressed in order to complete the financial re-structuring plan.

Bearing in mind that you were one of the potential candidates how did you make it to the CFO of Nakheel?

Nakheel was interviewing various candidates and I was one of them. After

completing my first round of interviews with the Nakheel management team, I was called by the Chairman’s office to meet with him. During my discussion with the Nakheel Chairman, he asked me, “When can you start?” To which I replied, “Immediately.” That is when I was appointed as the CFO of Nakheel.

Finally, how did you make it to become the CEO of Nakheel?

Plain and simply through hard work. In my view, there is no substitute for hard work. The main challenge after successfully completing the re-structuring was to implement the agreed business plan and to achieve something like this, you had to have someone who had complete knowledge and understanding of

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the plan and the business and fiscal principles involved in making the plan. Having worked through the entire restructuring, I guess I earned the trust and confidence of Nakheel that resulted in my appointment as CEO in October 2012. In addition to delivering on the business plan ahead of the five-year time period, Nakheel also prepaid all of its bank debts. No mean feat considering that this was done four years before the last debt installment was due.

Does industry knowledge help in getting the ‘top job’?

I did not belong to the ‘Real Estate’ sector and still have worked my way up. Yes, industry knowledge definitely helps but it is not a mandatory requirement. You can learn this as you progress, especially if you have the right people in the management team of the company that you can call on for their knowledge and advice. This also enables your own personal growth and learning.

What is your view on the Real Estate market in Dubai?

The real estate market has matured. If we look at projects coming up today they are reasonably priced and affordable as is evident from the demand for the products.

Do CFOs make good CEOs and what are the soft skills that are required to achieve this?

Yes CFOs can make good CEOs. The CFOs have a good understanding of the financial matters, and their ability to assess how businesses are performing is very useful. They are an integral part of the team entrusted with formulating business strategies, as there has to be some yardstick to measure and deliver performance.

In addition to these skill sets, if a CFO has business acumen; is commercially oriented and is willing to communicate with management staff regularly, he is equipped to take the top position in an organisation.

What is your advice to upcoming CEOs? There is no replacement for hard work, quality and timely delivery on targets. Also, a friendly work

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“In addition to delivering on the business plan ahead of the five-year time period, Nakheel also prepaid all of its bank debts. No mean feat considering that this was done four years before the last debt installment was due”

environment helps to overcome even the most challenging of situations.

People are important, and in Nakheel we have faced various challenges but with time - and business improving - most of the challenges have been addressed. Further, we all had a very friendly and supportive

attitude towards each other, and this has made great teamwork. Yes I am happy to share my email and often I do receive emails asking for advice, on various issues e.g. one of them was requesting for help as he had ‘run out of money’, financial tips, and the list continues…l

Shane Philips and Sanjay Manchanda

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MONEY

How Is Your Business Loan Application Evaluated?

Business Financing is always a hurdle for SMEs. They are often faced with long decisions and a lot of red tape, but do businesses really understand what it is that lenders are looking for? More often than not, lenders report to Business Insight that they don’t understand, and this could make all the difference as to whether or not their loans are accepted. Craig Moore, Founder and CEO of Beehive explains more… he world business stage is dominated by Small and medium sized enterprises (SMEs) where it is estimated that more than 95 percent of enterprises across the world are SMEs. They account for approximately 60 percent of private sector employment as well as accounting for an additional 52 percent of private sector Gross Value Added (GVA). GVA is a productivity metric that measures the difference between output and intermediate consumption. Gross value added provides a dollar value for the amount of goods and services that have been produced, less the cost of all inputs and raw materials that are directly attributable to that production.

Businesses face a common challenge when applying for finance as conventional financial institutions may focus more on providing loans to larger corporates and less on the smaller loan market required in the SME sector. The result is that SMEs can often encounter an unpleasant process of red tape and paperwork when applying for finance, regardless of the size or amount they need, and encounter rigid terms with some banks charging up to 26 percent annually with a high rejection rate of around 90 percent. Rejected finance applications leave businesses clueless as to how to improve their financial position in order to acquire the required funding, as financial institutions usually do not share the reason for rejection. These challenges in gaining access to finance can hamper SME growth and prevent them from reaching their full potential.

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The decision regarding how lenders assess the credit risk of any business applying for finance is based on a number of factors that are considered the foundation of commercial lending from the lender’s perspective. These factors, also known as the “The 5 Cs of Credit” (Credit history, Capacity, Collateral, Capital and Conditions) are the main factors used by lenders to evaluate potential borrowers.

Credit History Lenders need to know if you are trustworthy, that’s why your credit history is the most important factor when performing credit analysis. Qualifying for finance is largely affected by your credit history which is the track record you have established while managing credit and making payments over time. Your credit history consists mainly of information provided by lenders that have extended credit to you. In addition, lenders may also use a credit score based on the information contained in your credit report. The credit score serves as an indicator for the lender about risk based on your credit history. Generally, the higher the score, the lower the risk.

Capacity Measures the ability of a company to pay its debt service obligations. Analysing capacity traditionally comes down to looking at historical and projected cash flow, typically a lender will review the past 3-5 years of financial statements

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MONEY

to determine a cash flow figure.

Lenders need to determine whether you can comfortably manage your payments. Your past income and turnover history are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered.

The ratio of your current and any new debt compared to your income, known as debt-to-income ratio (DTI), may also be evaluated.

Collateral Is usually a plan B when applying for secured loans in case the borrower can’t generate enough cash flow to meet its debt service obligations. To protect their investments, lenders prefer to be covered in case things don’t work out as planned. Collateral gives lenders extra assurance that their loan won’t go bad if the borrowing company doesn’t operate as expected. The value of your collateral will be evaluated, and any existing debt secured by that collateral will be subtracted from the value. The remaining equity will play a factor in the lending decision.

Capital Measures how much the owners stand to lose should the business fail. The more capital there is, the higher the chance that the owners will do everything in their power to not fail. While your business income is expected to be the primary source of repayment, capital represents the savings, investments, and other assets that can help repay the loan. This can be helpful if you experience other setbacks. Having sufficient capital also ensures that there is a “cushion” in case the company’s cash flows turn negative for a season.

Conditions Address the economics of your industry and the larger macroeconomic environment.

Lenders will want to ensure that your business has competitive advantages and will not be adversely affected by industry trends. Lenders may also want to know how you plan to use the money and will consider the loan’s purpose, such as whether the loan will be used to purchase a machine or other property.

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The value of your collateral will be evaluated, and any existing debt secured by that collateral will be subtracted from the value. The remaining equity will play a factor in the lending decision Lenders will be unable to access the information required to conduct “The 5 Cs of Credit” if the business is not maintaining proper accounting records and bookkeeping which is vital to the ability of an SME to seek funds. A business that is able to offer an audited financial statement for use by management, banks and prospective creditors, can make a stronger case for flexible financing and credit terms.

Much like any entity that provides finance for SME, a peer-to-peer finance (P2P) platform like Beehive will ask for a business’s financial records. It will look at a cross-range of variables that determine the credit risk of a business, relying heavily on documentation that is created through transparent, reliable

bookkeeping. An SME’s ability to produce such records means that the business is serious and committed to success. It also indicates that the business is well-managed, organised and has nothing to hide.

Based in Dubai, Beehive is the first P2P finance company in the Middle East that is set to revolutionise the SME finance industry using P2P platform technology. Beehive’s online marketplace directly connects established businesses with smart investors which provides SMEs with access to faster, more flexible and lower cost finance starting from AED 100,000 for up to 3 years, with no early repayment penalties and saving up to 30 percent on their cost of finance. l

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Corporate Social Responsibility Interview: Sudhaker Tomar, Managing Director, Hakan Agro DMCC LLC

Corporate Social Responsibility (CSR) is more than just a passing buzz phrase in HR. It is a whole movement that is happening on a global basis to make businesses more environmentally aware of their impact on the local community

any businesses in the UAE however, believe that they are too small to have their own CSR policy, however big corporations like Lever Brothers and Kellogg’s, have found that the lack of a credible CSR policy, and the negative press that failing to look at this area will ensue, means a reduction in profits as the consumers are the ones demanding this. If they have realised that they are not too big to be affected by consumer perception, then surely SMEs in the region should never consider them as being too small…

In our series of articles, we will be looking at businesses that have successfully implemented a CSR policy and the reasons why they did this. This month, Business Insight has the pleasure of speaking with Sudhaker Tomar, Managing Director of Hakan Global, to understand what his business has done to address these issues.

“When you have the supply chain often the real benefit of cheaper prices is not passed onto the consumer. More often then not, they are not aware of this, the consumer will keep thinking only of the high prices, not understanding the business model.

“At the same time, the farmer is also upset, as he is not getting proper remuneration for what he is growing. So he is upset, the consumer is upset so we need to be very careful about rational distribution of the profit in a supply chain. It’s not fair. I think

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Teacher and class in Agra, India

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there is an area of CSR for everybody – The consumers, the retailers, the suppliers, the transporters etc.” explains Tomar when questioned on his thinking.

Your business is predominantly in commodities. We often hear about farmer’s rights being abused by major corporations. What can be done about this?

For the staples that are needed - things that can be quantified as nutritious things - all around the third world people are only worried about filing their stomach, be it with rice, corn etc. The focus in the third world at the moment is not about the nutritional security, it is about making sure no one goes hungry; Food security. If there is a conscious collective effort by those who are retailing distributing and sourcing the food to be ethical and not over charge for those food stuffs which are nutritious – Protein, pulses, meats etc. this would be a good idea.

What about profit margins?

At the moment, there is a 700/800 percent profit margin in the supply chain. Consumers would consume more if the prices were dropped. The increased supply would mean that farmers would supply more and the supply chains would grow. If you don’t pass this onto the consumer, it will not drive demand and farmers will lose interest, just as they are at present.

There is a problem of urbanisation. 50 percent of the population live in the cities, up from 70 percent. Now three people are growing food for 10 people. They don’t like it. There was a survey two to three months back in India where they asked farmers, “If you were given a choice, would you like to farm?” 55 percent said no. They are not getting money. It is more a healthy distraction for them. They are not engaged with it. Imagine 400 million people not farming. The children will

“are the companies sustainable over the longer-term? We are very conscious of the fact that we have to have a local flavour on what we do”

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If there is a conscious collective effort by those who are retailing distributing and sourcing the food to be ethical and not over charge for those food stuffs which are nutritious – Protein, pulses, meats etc. this would be a good idea

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“People and the consumer are asking questions. They want to do business with the companies who are focused on this”

Malagasy Farmer, Madagascar

hear their parents opinions and take these on, which creates the urbanisation and they will just walk.

What should businesses consider if looking at a CSR programme?

Sustainability in terms of environment, soil and the people; are the policies sustainable over the longer-term? We are very conscious of the fact that we have a local flavour on what we do. We have to have been sustainable over a longer period of time by employing local people.

Also review areas for improvements. In my sector money is lost in transportation for example. This is no excuse not to improve that and just charge more. People don’t have to have their deep greedy pockets.

Do you think that more businesses are introducing a CSR policy?

People and the consumer are asking questions. They want to do business with

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the companies who are focused on this.

Farmers want to be with these companies regardless of size. They feel that they are rightly treated. They often disbelieve the big companies as they have had promises made to them, which they don’t keep.

Technology is shrinking the supply chain. Farmers will get more profit, as they are able to do more of the process themselves.

What can companies do?

Imagine the continent with 53 countries, can fit the equivalent of the whole of China, North America and the majority of Europe on its landmass, which is abundant with natural resources. It was viewed as a place that can be exploited.

Now this is changing. People are now demanding that if you are working in our countries, you have to give back.

Companies need routes on the ground; integrate the business with the local

population, and start educating people locally, only then they will get the real benefit.

We are in touch with all the cooperatives, run either by the Governments or the collection agents. We often support them operationally by giving advice, or else we fund them with letters of credit – effectively becoming guarantor to the farmers.

We have also started working with the WFP, UN and local governments to deliver to them the food that they need locally. For example, they need wheat, so we will get it from Europe or Russia, take it to them, bag it locally and then deliver it to the warehouses to await distribution. These are often complex operations.

A lot more promotion of CSR is required. Culturally, here a lot of people do it on a personal level…

There is headway to be made across the world in CSR. Because Dubai is young enough, we can all lead the way. We can revolutionise the CSR process.

On a personal side, in India, 70 percent of the people live in villages. Only 30 percent live in cities. From those 30 percent, only 10 percent have the means to send their people to quality education. The rest don’t have the hygiene or the linguistic backing to even begin to compete.

Therefore I chose several villages and in between all of them, I brought some land and am building a school that will give all the villages the education that they need – it will replicate the education you would get in Dubai.

The idea is a pilot project with 500 children giving them a similar pedigree of those in the cities. These children will then be able to teach others what they have learnt. I am aiming for 50 percent girls and boys. In India, girls often get bypassed with education, as they are the home-keepers historically. We will be providing everything, the school busses to ferry the kids in, whilst the locals are the ones building the schools.

It will take generations to see full fruition of what I want to achieve, but everyone has to start somewhere.

For kids to reach year 6 education is a huge task. We are taking commitments from the parents so that they will allow their parents to continue their child’s education.

The children will focus on their education as well.

There is so much talent and so much potential. We have the capabilities to channel this and help them realise their potential. l

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LEGAL

Wills In the UAE

The Dubai International Financial Centre (DIFC) recently launched the DIFC Wills and Probate Registry (WPR) that will allow non-Muslim expats in Dubai to control what happens to their assets based here in the event of their death

ita Maru is a UK-qualified solicitor and managing partner at TWS Legal Consultants in Dubai. She is part of the working panel which created the DFIC WPR and their rules.

Maru explains that the DIFC WPR is an administrative body that works with the DIFC Courts in the production of grants and court orders for the distribution of assets as well as guardianship. Its creation enables non-Muslim expats to register a will under the internationally recognised Common Law. Should you wish to prepare a DIFC Will, it is prudent to seek the advice of a correctly licensed lawyer. Wills are important documents that should be prepared by qualified and licensed lawyers. As noted on the Registry website, a “home-drafted Will may be invalid or ineffective, causing unnecessary burdens and expenses

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on your executors and beneficiaries, [sic] it is advisable to consult a qualified legal representative.�

Business Insight put the following questions to Maru to get a better understanding of the implications of this new regime.

Starting off with the current situation - How are the UAE assets of a non-Muslim dealt with after death?

Currently, the distribution of such assets is guided

by UAE Federal Law (Personal Status Law and the Civil Transactions Code) and public order in accordance with Sharia custom and principles. Following a death, the UAE Courts will examine an estate and potentially distribute it according to Sharia law, where distributions are as per fixed share ratios.

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LEGAL

“home-drafted Wills may be invalid or ineffective, causing unnecessary burdens and expenses on your executors and beneficiaries… it is advisable to consult a qualified legal representative”

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The author is Nita Maru, British qualified solicitor and Managing Partner of TWS Legal Consultants with over 15 years of experience at senior positions held in London and the UAE. Nita has a British law degree, and is a member of The Law Society of England and Wales. She also holds a full Legal Consultancy license from the Government of Dubai Legal Affairs Department.

So what does that mean in more detail?

Under Sharia law, a surviving wife who has children qualifies for an eighth of her husband’s estate, and a surviving husband who has children qualifies for one quarter of his wife’s estate. The remainder of the estate will be distributed amongst other family members, depending on who survives the deceased at the date of death.

What about guardianship of children?

Whilst a surviving wife may be appointed as a custodian of any children of the marriage, she may not automatically be appointed as the legal guardian. A surviving husband is likely to be appointed as a custodian and legal guardian of any children of the marriage.

Can a non-Muslim make a Will under UAE federal law?

A non-Muslim individual can make a Will in accordance with UAE law and procedures. Such a Will expresses an intention for moveable assets situated in the UAE to pass in accordance with the testator’s (person who made the will) home country law.

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The DIFC is the first jurisdiction in the region where non-Muslims can register a Will under common law inheritance rules However, the application of home country law to immoveable assets (real estate) remains a grey area in the UAE Courts. It is important to realise that the application of such a Will, in addition to the UAE law, is at the full discretion of the UAE Courts. This is something which creates uncertainty and results in expatriates retaining funds outside of the UAE. What then are the benefits of registering a will at the DIFC WPR? The DIFC is the first jurisdiction in the region where non-Muslims can register a Will under common law inheritance rules. Registering of such Wills began officially on 4th May 2015 and will promote certainty amongst expatriates, promote investment in the region and avoid family members becoming involved in uncertain proceedings often encountered in the UAE Courts.

What are the requirements?

The testator must not be of Muslim faith, must be over the age of 21 years and have assets situated in Dubai. It is not a requirement to have

a UAE residence visa. If a testator wishes to make provision for guardianship of their minor children then the children must be living with the testator in Dubai.

How much are the registration fees at the DIFC Wills and Probate Registry?

DIFC’s registration fee is US$2,800 (AED 10,220) per Will. The costs of registering a will at the Registry should not deter individuals from registering their Wills. The registration of a will with the Registry should ensure that Sharia Law principles are not applicable to the distribution of the Dubai estate upon death (whereas the regime within the UAE Courts works a discretionary basis and there is no guarantee that Sharia Law principles will be excluded).

It is of course for each individual to assess their own financial and family circumstances and the associated benefits of adopting the DIFC rules. l To know more about the option of preparing a DIFC Will visit www.twslegal.ae or email nita@ twslegal.ae

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LEGAL

Reflections on Middle East and Asia investment into Africa

Central Business District Skyline, Nairobi, Kenya

he most notable investor countries into Africa from the East have been China, India and the UAE. New major investment partners from the two regions are rising, including Saudi Arabia, Qatar and Kuwait in the Middle East, and Japan, Malaysia, Korea, Indonesia and Singapore in Asia. In this article, we take a closer look at African investment from the Middle East and Asia, drawing on insights from the experiences of the various Africa Legal Network corporate law firms in Sub-Saharan Africa, which are routinely engaged in advising foreign investors entering the top African investment destinations.

In a report published by the United Nations titled “Asian Direct Investment in Africa, Towards a new era of cooperation among developing countries�, the UN reported

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that between 2002 to 2004, foreign direct investment (FDI) from Asia to Africa had reached an annual figure of US$1.2 billion, and predicted that this figure would rise. A decade later, and FDI from just China to sub-Saharan Africa in 2012 was over US$18 billion, with annual trade volumes standing at US$210 billion in 2013. Annual trade between Africa and the Middle East has been estimated as being over US$50 billion, with non-oil trade between the UAE and Africa estimated as being over US$20 billion.

Leading Investment Sectors The main sectors of interest for investors from the East have been oil and gas, energy, fast moving consumer goods (FMCG), financial services and infrastructure. China leads the charge when it comes to extractives and infrastructure

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LEGAL

“An often-noticeable difference in how the East invests into Africa as compared to the West is that Eastern investors seem to be more adaptable [sic] in African countries. The adaptability factor has however been criticised as being at times tolerant to less than ideal governance, environmental, social and labour practices.

There is a balance to be struck, as development should not only be industrial and economic, but should also enhance the sociopolitical outlook of investee countries” Industrial zone conveyor belt system on gold mine South Africa

development, with a lion’s share being taken by Chinese state-owned enterprises.

Indian corporates are very active in the areas of telecommunications and technology, agro-processing and FMCG. One of the most iconic entries by Indian investors into Africa was Bharti Airtel’s US$10.7 billion acquisition of the African telecommunications assets of Kuwait’s Zain a few years ago. Since then, other Indian giants have followed suit.

Other Asian majors in Africa include Malaysia, which in March 2013 was reported by UNCTAD to be Asia’s top FDI provider in Africa, surpassing that of China in 2011.

Top Malaysian companies in Africa include Petronas, the global oil giant which has an 80 percent stake in Engen, a South Africa petroleum company with interests across Africa, and Sime Darby, the Malaysian energy and agri-business conglomerate, which is the world’s biggest palm oil producer, with operations in South Africa, Liberia and Cameroon.

The Middle East has been active in Africa for several years, and aided by vast oil and gas revenues

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over the past few decades the Middle East has been expanding its focus in Africa. There are significant investments in the financial markets, real estate, hospitality, logistics and FMCG and retail. Our colleagues in Nigeria identify the three major sectors that the Middle East has been investing in Nigeria as being real estate, financial services and trading.

Big players in African real estate and hospitality from the UAE include Isithmar, a Dubai-based investment holding company, which together with London & Regional Properties, a UK investment group, bought Cape Town’s prestigious V&A Waterfront for US$910 Million a few years ago. Investment from the Middle East also includes the industrial sector. In September 2014, a UAE sovereign fund, Investment Corporation of Dubai (ICD) bought a 1.4 percent stake in Dangote Cement, Nigeria’s biggest company by market capitalization, for US$300 million. In early 2014, Al Futtaim, a UAE conglomerate, took over CMC Holdings, a giant automotive dealer in Kenya, for about US$90 million. Al Futtaim is also introducing the giant French retail chain, Carrefour to Kenya.

and Southern Africa. Although Mauritius continues to play an important role as a financial/shareholding-structuring gateway, the main business and transactional gateways are Nairobi (Kenya), Lagos (Nigeria), and Johannesburg (South Africa). In Nairobi, many companies have seen an increasing sophistication in the infrastructure (physical, services and human capital), making it an obvious choice for regional and pan-African headquarters for a growing number of international investors. Increasingly, many Asian and GCC investors will use the UAE as an intermediate holding jurisdiction for African investments due to familiarity, zero taxation regime and its expanding double tax treaty network with African states.

There are also emerging new investment centres in Africa. Abidjan in Cote d’Ivoire has recently regained its glory as the headquarters of the African Development Bank (AfDB), which had been moved to Tunis 10 years ago during Cote d’Ivoire’s civil war. Another emerging hub is Accra in Ghana, which enjoys relative political stability and improving law and governance.

Preferred Investment Hubs In our experience there is increasing regionalisation within the continent and regional hubs have developed in East, West

Treaty Incentives For Investment Investment partners from the Middle East and Asia have been actively entering into treaties for encouragement of investment with

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African countries. For instance, China has over 20 bilateral investment treaties (BITs) with African countries, including among others, Ghana, Tunisia, Egypt, Kenya, South Africa, Mozambique and Mali. India has BITs with Egypt, Ghana, Mauritius, Morocco and Mozambique. The UAE has BITs with Algeria, Egypt, Morocco, Mozambique, Sudan and Tunisia.

UAE has double tax treaties with among others, Algeria, Egypt, Sudan, Tunisia, Morocco, Mozambique, Seychelles and Mauritius.

More recently, a UAE DTA with Kenya is expected to come into force soon.

China has DTAs with among others, Egypt, Ethiopia, Morocco, Mauritius, Seychelles, South Africa, Sudan and Zambia. India has DTAs with among others, Egypt, Kenya, Libya, Mauritius, Morocco, Sierra Leone, Tanzania, Uganda and Zambia.

How Different Is The East From The West?

An often-noticeable difference in how the East invests into Africa as compared to the West is that Eastern investors seem to be more adaptable to the local circumstances in African countries. There is a clearer understanding of methods of transacting and the realities of a developing world since most Asian investors are already operating in emerging markets at home and hence the risks and challenges of investing in Africa will generally be familiar.

The adaptability factor has however been criticised as being at times tolerant to less than ideal governance, environmental, social and labour practices. There is a balance to be struck, as development should not only be industrial and economic, but should also enhance the socio-political outlook of investee countries.

There Is Still Room For Improvement Despite the strides that have been made by African governments to foster investment, improvements still need to be made in order to fully benefit from the growing relationship between Africa and the East. African governments need to continue working hard to reduce corruption and improve

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“Mauritius continues to play an important role as a financial/ shareholding-structuring gateway, the main business and transactional gateways are Nairobi (Kenya), Lagos (Nigeria), and Johannesburg (South Africa)� security, expanding free trade zones, ease foreign ownership and work permit restrictions.

Investors from the East also need to move away from common misconceptions that could act as a deterrent to investment. One of the prevalent issues we note is that investor perception of Africa tends most times to be different from the reality. Most commentary tends to focus on the negatives rather than the positives, and the risks are often overplayed due to a lack of understanding. As a result a number of investors do not appreciate the high level of sophistication, which has developed in the African business community, resulting in tougher competition for foreign entrants.

For the African enterprises seeking to attract foreign investment, they should ensure

that they have high standards of corporate governance and strong teams as investors are looking up for businesses that operate using international best practices. For the Middle Eastern or Asian investor, there is a need to get strong local partners, understand the business environment and analyse the market dynamics, which often differ greatly on a country-by-country basis. Africa is often presented as if it is one country. New investors need to understand that Africa comprises 54 countries and each country needs to be approached individually in its own right.

Just because one approach worked in one country does not mean it will work for its neighbour. l

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The Future of Trade Gautam Sashittal - CEO, DMCC

The Global Challenge The exchange in physical goods, anything from raw materials, to food, to electrical items and luxury products has increased wealth, provided opportunity and improved quality of life around the world. Over 80% of everything we purchase travels by sea and, as a result, over the years shipping channels have been established, road and rail networks have been built, and ports and cities have prospered. The value of international commerce has grown almost tenfold in the past 30 years because more people have access to more products so, to satisfy this demand, we are now transporting more raw materials around the world than we have ever done before. The shipping lanes are full. But change is in the air. After centuries of Western dominance the rules are being rewritten as new trading patterns between Asia, the Middle East and South America evolve. At the same time technology is revolutionising what we make and how we make it. The next decade will see transformational change as these new processes and markets develop.

Options and Possibilities Four elements are key to ensuring the smooth transfer of goods and services; availability of product and market; a functioning, safe infrastructure; effective governance and the application of technology.

Availability of product and market - Since the onset of the global financial crisis many would argue that emerging markets are now the drivers of global growth providing a willing workforce and a growing middle class with money to spend. In 1987 these countries made up just 16% of global GDP, but today they account for 31%. 2013 was the first year in which they accounted for more than half of world GDP on the basis of purchasing power. The opportunity this presents for trade is enormous, not only due to new and growing domestic markets, but also because many emerging economies, in Africa and South America for example, are richly blessed with the raw materials needed for growth and development - and so can export them to others, in particular China and India.

As a result of this, the next decade will see the postwar routes gradually being eclipsed by the power of the Indian Ocean region where new port construction and proposed railways stretching from China to Turkey and from coast-to-coast across Colombia indicate the

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shape of things to come. South-south trade, which has doubled in the decade from 2000 to 2010, is likely to account for over a third of global trade by 2025.

And perhaps most significantly, now the world’s largest trading economy with a growing middle-class China is set to challenge the US as the world’s major economic power. Its influence is growing: It owns five of the world’s top ten biggest container ports and is making huge investments in other developing markets, rich in natural resources.

Boasting about a quarter of the world’s container trade and as the largest foreign investor in Brazil, Laos, Myanmar, Iran, Mongolia and Afghanistan, China’s commercial power is indisputable.

How it integrates alongside other new and important markets into the global trading system is complex.

In addition to the trade routes, the kind of products that will be needed over the next decade will change and

manufacturers will have to adapt to consumer demand. Generally speaking per capita income overall is still low so the goods and services that will be purchased will reflect this. For example, cars for the next billion consumers will be more functional and probably of lower spec. It is increasingly likely they will be produced in the countries where they are needed rather exported from expensive established factories.

Over the next decade expect more local manufacturing, supported by more localised cross-border trades.

In addition to the change in political influence, globalisation has resulted in the biggest migration of people from rural areas to the towns that the world has ever known. New cities and a growing middle class have made markets more easily accessible for consumer products and services. The most rapid urbanisation will continue in Africa; the UN predicts that Kinshasa’s population

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will double by 2030. But on top of this, nearly 9% of the world’s population will live in just 41 megacities (those with more than 10m inhabitants).

As they grow cities will become increasingly influential in their own right. Often centres for innovation, their reach will stretch far beyond the confines of national boundaries.

In addition cities are positioning themselves as centres of excellence.

Cheonan in South Korea has been a trailblazer in digital displays, for example, and Tel Aviv and the surrounding ‘Silicon Wadi’ in Israel is a hub for wireless telecoms. As a result increasingly cities will compete with each other as centres for manufacturing and trading.

But, as technology and supply chain efficiency makes it easy for producers to relocate their factories to cheaper centres, cities will have to depend on the quality of their infrastructure (especially international transport links), the flexibility of regulations and their ability to attract talent to remain competitive as trading centres in the long term.

The benefits to be gained from bringing the same level of efficiency to the last mile as there is to the first thousand are attracting much attention and innovation focus. As more people live in cities there will be an increasing need to reduce inefficiencies around the last mile delivery for many items. Whether the winners will be Amazon’s proposals around drone delivery or the more pragmatic locally pooled collection points remains to be seen; many options are now being trialled. The much-hyped concept of autonomous and driverless trucks is starting to have impact. The vision of long-distance platoons of trucks all running on intelligent highways without drivers has been a topic for many over the years but, as shown by the recent licensing of Daimler’s self driving trucks in Nevada, reality is not far away.

Safe Infrastructure - Trading flourishes in free and secure markets and so maintaining efficient, safe transportation is a perpetual challenge. This applies not only to transfer of physical goods but also to the provision of services where

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The benefits to be gained from bringing the same level of efficiency to the last mile as there is to the first thousand are attracting much attention and innovation focus the protection of intellectual property and managing the threat of cyber crime that remain vital to the free flow of ideas. It’s an increasingly expensive issue. The think tank The Centre for Strategic and International Studies (CSIS), puts the annual global cost at $445 billion. Looking ahead, cyberspace is about to undergo yet another massive change as the Internet of Things connects billions of new devices making cyber-crime even more complicated to prevent and control.

Unreliable shipping routes, potholed roads and missing rail links are a perennial problem, particularly for some developing economies where transport costs can make up 50-75% of the retail price of goods. Africa in particular suffers from this and, as a result, intra-regional trade across the continent is just 13% of total commerce compared to Asia where it is 53%. Inadequate infrastructure bites particularly hard amongst the poor, if the transportation and transaction costs for subsistence farmers means that they receive less than 20% for their produce there is little incentive for them to grow more. These shortcomings have had a knock on impact on international trade; one reason why you don’t see many foreign cars in Kampala compared

to Dar es Salaam could be because, although the cost of shipping a car from China to a port in Tanzania is around $4,000, transporting it cross-country to Uganda can cost another $5,000.

However, significant foreign investment and a desire for change is set to transform African trading routes; the first dependable road across the Sahara is under construction; a double-lane tarmac highway with its own border terminal will soon connect Aswan and Wadi Halfa; and a new 1,000km-long desert road will run south to Khartoum alongside the River Nile. Asia also has an almost inexhaustible appetite for investment in infrastructure. A study by the Asian Development Bank estimated that it would spend $8 trillion between 2010 and 2020, of which 68% would be for new capacity. This includes high-speed railways linking Yunnan province to South-East Asia; new ports in Indonesia, Pakistan and Sri Lanka and the new ‘Silk Road’ across Central Asia to Europe.

Across the world, much still also needs to be done to reduce the impact of bribery and corruption on every level. The electronic free flow of ideas has created a new and profitable feeding ground for corporate hackers –

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costing companies billions of dollars to protect themselves has made cyber-security a priority. Equally significant is the problem of defending physical goods in transit. Non-state actors, that have no stake in the waterways, are more likely to be disruptive. Thanks to international naval cooperation, once menacing attacks from Somali pirates are now under reasonable control, but new threats may be emerging in other areas - such as from Islamist militants in Egypt’s Sinai Peninsula. More prosaically, roadside checkpoints not only cause delays but in addition they are often collection points for bribes and “safety money”. It’s a mundane but endemic problem; a recent survey found 54% of Indians said they paid a bribe in the last year, compared with 44% in Nigeria and 36% in Indonesia.

Effective Governance – Managing the changes in global trade requires clear governance. The World Trade Organisation (WTO), the body responsible for global trade, is in a good position to lead in this area. WTO agreements, are negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments and aim to help producers of goods and services, exporters, and importers conduct their business. But, as it seeks to put in place global rather than bilateral agreements, the WTO faces tough challenges in its quest to reduce trade barriers.

Member states, although bound by a common purpose have dramatically different requirements so that the ambition to seek agreement across multiple industries has proved difficult to negotiate and cumbersome to execute. The Doha round of global trade negotiations, deadlocked since 2008, is a case in point. Decisions about how best to secure transparency around global trade policies and enforce appropriate standards in labour laws and environmental standards will remain a priority. A key question for the

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next decade will be whether we will be able to achieve true global agreements or will bilateral trade agreements remain the way by which nations can better manage and control economic influence.

More specifically Special Economic Zones (SEZ), such as the DMCC, which offer tax and custom subsidies to foreign investors also help to reduce bureaucracy. Across the world approximately 68 million people now work in over 4,000 SEZs which come in many forms, from basic “export processing zones” to “charter cities”, urban zones that set their own regulations in all sorts of areas that affect business. In China, for example, they were a useful way of testing reforms seen as too difficult to roll out nationwide.

In Dubai, the DMCC attracts key players throughout the entire value chain of a wide range of commodities sectors, together with relevant support industries such as finance, logistics and insurance. As they extend across the world it will be important for SEZs to retain the quality of support and incentives they offer in order to attract and retain a diverse range of inward investment and although some see limits to their application, going forward Special Economic Zones are expected to play a continued major role in providing the facilities for accelerating change and improving trade efficiency.

Efficient use of technology - The falling cost of transport alongside powerful communication technology has allowed firms to co-ordinate production across great distances and separate manufacturing into component parts. Ideas first muted in Californian sunshine have become a reality as sophisticated supply chains have reached new labour markets scattered across the world. At the same time, the dramatic decline in the cost of technology has created opportunities for the provision of high-value services

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in seemingly unlikely places. Skilled programmers in India, Indonesia and Brazil, for example, now sell IT services around the world. All of this is contributing to the global market place.

However, other advances include eliminating the need for human labour. Take for example the way that UPS has expanded its Worldport facilities in Kentucky: With over 250 miles of conveyors, 30,000 tilting trays and a thousand camera tunnels, it is the largest fully automated package handling facility in the world operating over 130 aircraft daily, and processing an average of 1.6m packages per day.

Similar facilities around the world are making the supply chains of many companies ever more efficient without the cost of labour. Indeed such is the cost reduction, the use of robots is even attractive in India, despite the vast supply of low-cost labour. If the need for middle skilled workers continues to decline sharply across all markets while employment in high- and low-skilled occupations increases, over the next ten years the gap between the rich and poor will continue to increase.

Over the next ten years other technologies, such as 3D printing, have the potential to profoundly change the way we make and charge for products. On one level this will result in cheaper, faster and more versatile manufacturing, reducing the need to ship goods across the world. On another its use raises a number of challenges for IP. If, for a small fee, a digital file can be downloaded to make a spare part for a washing machine, manufacturers and consumers will both benefit as transportation costs will be reduced. If however manufacturers fail to control the IP and therefore are unable to charge for the download, as has happened most significantly in the music sector, then IP will become irrelevant and replacement parts will be made for no fee other than the material cost.

Proposed way forward We are witnessing the transition to a new order. New national interests, new trading routes, new products and services are all emerging. How best to ensure the transfer of goods and the future development of trade in this environment will be key to our collective success. However several key questions remain as yet unanswered.

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Globalisation is lifting millions out of poverty but the cost to the environment has been huge and who knows the full impact?

Climate change can no longer be ignored.

Will the increasingly visible impacts cause countries and companies to really adopt new approaches? While many are now looking at improving the resilience of their facilities to more extreme weather, how many will also seek to pre-emptively adapt to the new world of 4C of global warming including rising sea levels, more variable weather and more extreme temperatures?

Furthermore, as the global workforce becomes more mobile, how will organisations attract and retain top talent and how will governments ensure they provide them with the relevant education that will allow economies to thrive?

Finally how can we nurture innovation and encourage the free flow of ideas and products in an increasingly interconnected world?

It is very difficult to predict what the future will hold – at best we can anticipate it. What we know however, is that no one body will be able to influence all the factors which contribute to free and open trade. But, for organisations that are committed to facilitating economic growth, creating an environment that can adapt to change and improve quality of life for the majority without undue damage to the planet has to be the objective. l

Gautam Sashittal - CEO, DMCC Gautam Sashittal was appointed as the Chief Executive Officer of DMCC in February 2014. DMCC is a government of Dubai Authority dedicated to establishing Dubai as the global gateway for commodity trade. Home to over 10,000 companies, the DMCC Free Zone is the largest and fastest growing Free Zone in the UAE. DMCC’s stewardship has seen Dubai grow into the third largest diamond-trading centre in the world and a leading global bullion hub. In the short space of 12 years, DMCC has established a unique eco-system to support a range of commodity sectors, including a robust regulatory framework and innovative physical and financial infrastructure and services.

Mr. Sashittal brings more than 25 years of business experience across a range of industries. He spent a large part of his career in the oil and gas industry with Royal Dutch Shell plc, and prior to joining DMCC, was the CFO of the Dubai Gold and Commodities Exchange (DGCX), the Middle East’s first and fastest growing derivatives exchange.

Mr. Sashittal remains a member of the board of directors of DGCX.

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marketing & Advertising

Modern Day Call to Marketing: The Android Context By: Jim Wheat, Marketer & Dollarsandart Founder

Do you know where your iPhone/Android device is? I could guarantee you do… Is it in your back pocket? If you are in front of your PC, is it on your desk in front of you? Alternatively, is it on charge? You know exactly where you have left it without needing to give these questions much thought... Right? This is how important the device has become to you and the reason why marketers are making it the most important piece of a marketing platform

o let’s assume you’ve an online presence with a website and ‘all the social whistle and bells’ - it does work on all devices, doesn’t it? Well it should. Home computers and mobile devices have come an extraordinarily long way since they were first introduced in the 80s. Modern mobile devices are various sizes (though all less heavy and skinnier than anything in the 80s) and can perform all the functions that average people use their desktops for.

Phones, tablets, apps etc. all provide access into all areas of Internet. They can also be used to access all areas of your business, providing you with knowledge on business or hobbies all in the palm of your hand.

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At Your Disposal The issue is keeping up with the latest model. Within seemingly days of buying the latest handset, tablet, computer or laptop, the next one pops up on a billboard and you maybe thinking I should’ve waited?

Before your website goes live, you must check that it works on all device, PC, Laptops, Mac computers, iPhones and Android phones, not to mention iPads and other

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types of tablets. Email an invite to your friends asking for their feedback and a link to all of your online marketing avenues – By this we mean your website and social media accounts - and ensure you take action on the information that you are given.

Your brand should be visible across all platforms. Each being uniformed with the previous so that you stand out and are identifiable, to those that take the time to read what is being said. Consider things like typography, words used and your logo.

The Importance Of Story Telling It was this theory that inspired me to create “Beasties, phone and iPads” which is part of the Intergalactic$ 2014 collection. The phone and toothbrush artwork told a story, promoting it from an otherwise meaningless collage of yesteryear - but it needed putting into context. This ritual needs to be replicated in your marketing strategies.

The social media revolution wrenched the keys to the cultural kingdom away from pundits, doubters and gatekeepers to give ordinary people all over the world a voice and the chance to put their world into context! It is great to

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Jim Wheat

be able to communicate through all these channels but if used correctly across the right medium, at the right time, your engagement can lead to that oh-so-important connectivity.

Context Not Just Content Essentially, content marketing is an online marketing approach that incorporates tools like blogs, social media and SEO concepts to attract the interest of potential customers.

The key is to provide interesting, educational material to engage a prospect and encourage him or her to move onto the next phase of the sales process.

We’re just now starting to see the ramp-up of the next biggest trend: context marketing. If you want to incorporate this strategy into your marketing efforts, you need to understand context marketing and use it to your advantage.

What’s The Big Deal?

In a nutshell, context marketing is about timing communication so that it is delivered when it is at its most relevant. It provides: ll The right content ll To the right audience ll At just the right moment Context marketing inserts timing into the equation, and versus content marketing, it also takes into account the specific personality of the customer. Even if you have two of the components nailed down, you could still lose a lead because they are not the proper audience.

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Context marketing is critical to your online marketing strategy because it enables you to provide a more personalised experience for leads. Your existing advertising efforts will perform more effectively because you are giving prospects more relevant information that they need now.

Calls To Action That Pack A Punch Your prospect is interested and loves your product, but may not be ready to buy, so your call to action needs to fall somewhere in between keeping them engaged without turning them off with ‘demands dialogue’ and ‘common ground’.

Context marketing versus content marketing means getting personal with your connections, so creating effective buyer personas is crucial. Doing so will help you fit the right content into three prongs: relevant information, the right person, and the proper timing. As you develop your different personalities, focus on questions that relate to

these elements and you will be better at getting your prospect’s attention.

So to help cut through the clutter of over saturated apps, platforms and endless social media options keep your message in the right context – ideally with a story behind it that can increase the chances of empathy and common ground. l

Jim Wheat’s Top Tips ll Check your online branding across all platforms – not just your desktop! ll Modern day social media is responsive and needs action otherwise the moment passes.

Don’t draft and ‘wait until I get home’ - engage and strike while the iron is hot ll To increase the chances of engagement context is key

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technology

The New IP – Getting Started In The Data Centre By: Yarob Sakhnini, Regional Director, MEMA at Brocade

The New IP allows you to take evolutionary steps to achieve revolutionary results. So, where do you start?

here are two basic components to a New IP network: The overlay and the underlay. Many feel that the overlay is a bit more complex than the underlay, but you can gain benefits from either component alone, or eventually both together.

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Building A Foundation In terms of the underlay, every network ultimately needs to move data and forward packets. And if you have virtualised your compute environment, like just about everyone else, you need a packet underlay that lets you get more out of that virtualised computer system.

In fact, you need to be able to track the VMs as you move them, monitor traffic between them, and troubleshoot everything. This is a very hard problem to solve with old IP networks, but it’s much easier with New IP networks. In fact, a New IP underlay will make a current VMware environment run better, while also paving the way to a new software overlay.

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The right underlay network is essential to the New IP and an agile business. Ethernet fabrics are the most oftenrecommended underlay architecture.

A fabric-based underlay increases agility by reducing complexity and increasing automation. Fabrics are agile and automated and they easily scale up and out - adapting to handle instantaneous changes in traffic flows, flow sizes, packet sizes, and protocols. There are five must-have features with any fabric: True Democracy Every switch is equal to every other switch - the architecture is flat, without hierarchy, so that there is no single point of failure.

Distributed Intelligence Every port is aware of every other port. This means you can move workloads with their associated characteristics - called Automatic Migration of Port Profiles (AMPP) - without the need for time-consuming, labour-intensive, and error-prone manual network reconfiguration.

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With the New IP, you can virtualise just about any network service, so this wrapper of policy can be anyplace Native Automation Fabrics should be built from the ground up for automation, making them five to ten times faster to deploy than individual elements and providing a wide range of additional capabilities such as AMPP, zerotouch provisioning for VMs, and network self-configuration.

Absolute Persistence This means optimising and maximising the flow of traffic throughout the fabric. You can lose a port, or a whole switch, and the fabric will react in real time and balance itself. You get transparent interconnection of lots and lots of links.

Speed There is no compromise between scale and latency. Fabrics take the most efficient path, automatically and continuously. Fabrics combine hardware performance with software programmability.

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Building An Overlay In terms of the overlay, it begins with Network Functions Virtualization (NFV), which transforms routers, switches, firewalls, load balancers, application delivery controllers, and other physical equipment with software versions that run on x86-based hardware. NFV reduces CapEx and OpEx while making it easier to scale resources as needed. With NFV, services become mobile.

You also need Software-Defined Networking (SDN), which provides the tools to manage and control the network services and infrastructure, whether it has been virtualised or not.

OpenDaylight is an open source SDN initiative that allows you to visualize, control, provision, and centrally manage resources.

Service Orchestration The network is only one important part of the infrastructure. You have compute and storage as well. And that’s where orchestration comes into play. OpenStack, an open source protocol for the orchestration layer, can provide the same benefits of OpenDaylight at the network layer across compute, data, and network resources. In addition, because you are likely to have a multicloud environment (private and public) you have to make the clouds work together in a predictable, scalable, and manageable way. OpenStack orchestration provides that ability, allowing orchestration to stretch across the entire environment.

If you prefer to start small, focus on the underlay and just make sure every network

device you purchase is SDN-capable and manageable by OpenFlow. Even if you do not use the programmability of SDN today, it will be there for you in the future What about the Network Edge?

With the New IP, you can virtualise just about any network service, so this wrapper of policy can be anyplace. This is where virtual edge software and services fit into the picture, often called virtual Consumer Edge (vCE) in Communication Service Provider language, or virtual Customer Premise Equipment (vCPE). For example, consider replacing your stack of equipment, such as physical routers, firewalls, and/or load balancers, at remote offices with a suite of software instances running on existing servers at any site and manage it remotely.

One immediate benefit of this architecture can be path optimisation right at the branch location using a virtualised application delivery controller, dramatically reducing monthly MPLS/Ethernet backhaul costs to the data center. This savings alone can more than pay for the server and virtualised network services at each site. After you have the New IP edge in place, it becomes a platform for self-service delivery to further reduce costs as well as a platform for new service innovation.

The point is, there are many ways to get started on your journey to the New IP, including overlays, underlays, data center fabrics, and the new edge. Each can deliver strong business value today, alone or in combination. l

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property

The Workplace Renaissance Ben Woods, General Manager of Dubai-based OFIS Al Gurg Furniture, LLC (OFIS), a division of Easa Saleh Al Gurg Group, LLC, explores the benefits of calculated collaborative and inclusive workspace interior design schemes as a way of Increase Workplace Productivity and Employee Wellness ith a year-on-year rise in the UAE’s employment rate coupled with a robust economy and a progressive society that continues to attract skilled talent from across the globe, there is an increased demand for commercial interior design fit-out solutions is inevitable.

Moreover, the need for strategically planned workspaces that generate more chance meetings, alcoves for privacy and easily adaptable spaces is also increasing at a rapid rate.

Research shows that employees see a clear link between the physical work environment and personal productivity. They also report that their surroundings impact job satisfaction (Gensler - 2013 U.S. Workplace Survey – Key Findings).

In the education and healthcare sectors alone, with immense growth and new facilities opening up across the UAE each year, the demand for smarter workspaces is higher than ever. Looking to the corporate space, specifically with the recently opened Dubai Design District (D3) attracting a plethora of design and architectural enterprises, the need for collaborative, engaging yet productive work environments, to suit these businesses’ goals is equally in demand.

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Regionally, as we continue to evolve and grow, purpose-driven, inclusive and collaborative workplace design schemes are not only preferred amongst corporate enterprises, SMEs, educational and healthcare facilities, but also essential for them to achieve success in the UAE’s competitive market.

As research shows effective workspaces balance focus and collaboration. Workspaces designed to enable collaboration without sacrificing employee’s ability to focus are more successful (Giang, Vivian ‘The Future of Work – Workspace Design Trends to Increase Your Productivity).

Discovering and planning the right workplace furniture and purposefully planning interior design schemes is the key to creating “workspaces that inspire”.

Planning Your Workspace Design to Increase Productivity The first step is recognising the need to make a change to current workspace interior design. Remember that we are designing workspaces for people while trying to maximise human potential, performance, and productivity.

In recent times, we have experienced a number of changes in the way we work. We have progressed from

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working together in one office, to working from home or on the go with the help of smart technology. We have undergone an “office renaissance,” encouraging organisations to physically bring people back into the office, come together, share ideas and work together.

This phenomenon not only enhances the physical, cognitive and emotional wellbeing of workers across the globe, but it also helps to instill groundwork for collaborative and inclusive design. By watching employees interact and ‘work’ together, interior designers, workplace consultants and ergonomic engineers have a visual perspective on the type of furniture and design schemes essential to make workspaces an ecosystem of interconnected and interdependent spaces that lead to a thriving work environment.

With businesses becoming more complex, employees must work together to create and share information. As a result, studies have shown a rise in innovation within a workspace that encouraged brainstorming, and free exchange of ideas.

Planned Approach Once organisations have recognised the need to employ collaborative designs, they should work with a worldclass commercial interior solutions provider to ensure specific challenges and obstacles are addressed.

For example, we have partnered with the world’s leading names in office furniture and flooring such as Steelcase, DVO, Aresline, Muzo, Interface and DLW Flooring among others to provide innovative, purposedriven, top-of-the-line furnishings for workspaces of all sizes.

As the planning and consulting phase is crucial to an organisation’s bottom line, businesses should pay extra attention to the practicality of price per metre in the real commercial sense. As a result, clients’ interests are best considered when a functional design is proposed. We recognise that real estate is at a premium and the optimisation of space is a shared philosophy amongst our team. This philosophy encompasses people collaboration, innovation, creativity and well-being and therefore your fit out contractor and team will have to understand the client’s unique

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Research shows that employees see a clear link between the physical work environment and personal productivity. They also report that their surroundings impact job satisfaction (Gensler - 2013 U.S. Workplace Survey – Key Findings) requirements to turn an empty shell into an exciting place to interact while, at the same time fulfilling the business needs along with the ergonomic considerations.

walk to the coffee machine, take their lunch; go to the washroom or the path taken when they step out of the elevator, impacts design and layout.

Interior Planning and Design Listen to the fit out contractor when they have suggestions as they learn from not just from study and experience, but also through their collaborations with others.

One of our leading furniture brands, Steelcase pioneered the ‘Power of Place’ concept driving home the importance of workspace design and its effect on employees and businesses across the globe.

Supported by its technically advanced, ergonomic and sustainable workplace solutions, Steelcase was a pioneer in the workplace renaissance movement that has impacted interior planning and design.

Specifically, changes in layout and how employees move around the workplace can affect productivity. When and how people

To ensure you have the right interior solutions partner, ensure that your provider: 1. Offers high-quality products and services - In today’s competitive market, top-of-the-line products and services are key 2. Understands the company’s fundamentals and purpose - Establish how employees collaborate and plan accordingly 3. Incorporates Inclusive Design Practices - A key differential to ensure all employees’ needs are met to thrive in the workspace 4. Ensures practicality of price/m2 to ensure optimization of workspace - Getting functional space size for investment

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Execution and Options Once workplace needs are determined and addressed, changes to the furniture and layout discussed in the planning phases should be implemented. Depending on the industry, this can involve the adjustment of an entire workspace or more simply, the introduction of a new table or set of chairs.

When chosing your fitout contractor and designer, chose one with an assortment of products that bring more flexibility and adaptability to the workspace. For example, with Steelcase, the New Think Chair is an icon of sustainable design offering superior innovative ergonomic design and support. Equally The Node, a flexible and mobile chair, is designed for quick and easy transitions, making it ideal for adapting to different school settings.

Looking to workspace aesthetics, Interface, a leading supplier of sustainable carpet tiles, enables organisations to curate beautiful spaces that inspire thinking with its Human Nature collection. This emulates grassy fields and pebbled garden paths. This delineation of

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To achieve equilibrium, provide a variety of workspace options that include open areas when collaboration is a priority and secluded areas, when workers need time to think and process ideas flooring has been proven to enhance employee’s moods and ways of thinking, leading to greater productivity levels.

On the inclusive design side, Muzo, an innovative global manufacturer of Way Of Work modern office furniture, offers an assortment of products that can be adjusted to meet the needs of physically challenged individuals. A great brand, Muzo wanted to evolve and innovate within the furniture industry and break down barriers that hindered workplace efficiency and wellness. For example, with Muzo’s Kite Table system, the legs can be adjusted so that a person in a wheelchair can sit at the same table to collaborate and work with fully abled colleagues. Muzo’s products are ideal for use in corporate, education and healthcare environments.

Focus Areas Finally, solutions that balance open spaces with areas where employees can focus are also important to effective workspace planning.

The use of dividers to create privacy and clearly defined workspaces is crucial, too.

Further, workers who have more focus spaces found their jobs and workplaces to be more rewarding and view themselves as higher performing.

Tyler Falk suggests in his article, “Is Collaborative Office Design Hurting Workplace Productivity?”

ZDNet.com, “To achieve equilibrium, provide a variety of workspace options that include open areas when collaboration is a priority and secluded areas, when workers need time to think and process ideas.”

These are just some options that can be considered to efficiently plan workspaces. Close relationships with a team of talented design professionals and a workspace solutions provider will further enhance personalised efficient design services. l

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The Key Drivers of Growth in Africa

Last month, Business Insight gave an overview on business doing business in Africa, but what exactly are the key drivers of Growth on the continent?

James Mwangi, Managing Director, AFFRONTA DMCC, shares his knowledge in this area

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AFFRONTA is a leading go-to consultancy for trade and capital flows between Africa and Middle East. We provide cutting edge advisory services and solutions to businesses directed at making the work of decision makers easy and quick to help take advantage of opportunities while minimising risks and costs.

Email: james@affronta.com; Tel.: +971505499406; Website: www.affronta.com

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Population and Demographics The key driver behind most of the growth being talked about is population growth as most African countries are growing by more than 2 percent p.a. In fact the population of most countries is expected to have doubled by 2050 according a recent forecast by The Economist Intelligence Unit.

This population growth will continue to drive the demand for most basic goods and services and continue to put pressure on existing infrastructure and social services including health and education.

Government funding hasn’t been enough and thus public-private partnerships will continue to be an important source of finance for growth capital needed and to bridge the huge deficit in national budget.

Urbanisation The demography of the current population is that half of Africa’s population is under 20 years and most are rapidly leaving the rural areas and villages for the cities in search of employment. This is driving a huge and very active labour force to be clustered around cities and urban centres. The result is that there is pressure on existing housing and urban city infrastructure and therefore a demand for affordable housing in and around major cities. In Kenya alone, there is a shortage of approximately

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“After decades of lagging behind in general development, many African countries are now striving to catch up with the rest of the world in making basic social amenities and services available to its citizens. This includes investment in basic healthcare and community health programmes, provision of universal basic primary education and social services for weak and marginalised sections of the society. The challenge is always finding the right partners to help close the huge deficit in national budgets with most of the national budgets being heavily skewed toward consumption expenditure as opposed to development expenditure�

150,000 housing units per year with most of this demand skewed towards the cities and urban centres.

Development After decades of lagging behind in general development, many African countries are now striving to catch up with the rest of the world in making basic social amenities and services available to its citizens. This includes investment in basic healthcare and community health programmes, provision of universal basic primary education and social services for weak and marginalised sections of the society. The challenge is always finding the right partners to help close the huge deficit in national budgets with most of the national budgets being heavily skewed toward consumption expenditure as opposed to development expenditure. Foreign aid and grants have been the traditional sources of alternative finance though they impose a huge future burden on repayment and other conditions of terms. Governments are now seeking alternative financing through raising debt in international markets. A

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good example of this is Kenya, which recently raised $2 billion worth of sovereign bond. Other countries have since followed suit in an attempt to access cheaper loans.

Investment In Infrastructure Many African countries are now investing heavily in building roads, railway networks, pipelines and ports. There is also increased focus to have transport linkages from East to West, and South to North across the continent. This is in a bid to boost the intra-African trade that is set to grow and take advantage of expanded markets through regional preferential trade agreements and custom unions. Many of these major and flagship projects are more obvious in the Eastern and Sothern Africa regions connecting from Daresaalam, Tanzania and the neighbouring countries to Zambia, and connecting the coast of Kenya and the neighbouring countries to Rwanda and the DRC Congo.

Improved Public Governance and Transformative Leadership Not all sub-Saharan African countries fit this description but many have improved from the reputation of years gone by when it would have been acceptable to label in blanket that all African leaders are corrupt or abuse power and their public offices. Many leaders are now democratically elected into public offices and most countries have revised their constitutions to guard against the abuse of public offices and the plunder of public resources. Many of the countries are improving their government services by employing e-government technology and central government services offices to bring predictability into government processes and to root out corruption. A good success case country is Rwanda, which has been voted among the highest in the world’s ease of doing business rankings.

The Rise Of Technology and Financial Inclusion Most sub-Saharan countries, have leapfrogged where technology

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is concerned considering the current level of consumption of smart phone mobile devices, computers and general use of internet and data services compared to 20 years ago when the penetration of landline telephone lines alone was less than 1 percent and internet use was almost non-existent. The Mpesa mobile money platform that originated in Kenya is now being exported to the developed countries as a convenient way of sending and receiving money. This technology has brought financial inclusion to the vast majority of populations that were previously considered too risky, or not good enough, by the traditional conventional banking industry. The line between mobile companies and banking institutions has become very thin and blurred to the point that companies in two different industries have been turned into direct competitors. A good case in point is Equity bank of Kenya who has forward integrated to start providing mobile services through Equitel raising competition for the mobile money transfer segment with Safaricom’s Mpesa.

African Diaspora Remittances and Middle Class Growth The role of Africa’s diaspora is now more than ever being seen as very crucial to the growth of economies as this group is driving a huge portion of the local consumer behaviour. In fact in most countries, diaspora remittances as a proportion of national GDP has surpassed traditional export sectors like tea, coffee and tourism. Most African’s in the diaspora send money home every month to mostly support their families’ consumption expenditure. Part of this money is also directed at the housing and real estate sectors as most seek

Key Growth Sectors in summary: Basic Consumer Goods and Services, Infrastructure, Energy and Power sectors, Oil and Gas and Mining sectors, Housing and Real Estate sectors, Manufacturing and agro-processing sectors, Information and Financial Services sectors

to secure a home for when they decide to visit or return home or to simply have a ‘status’ in their home country. This combined with the local growth of the middle class is fueling the consumerism behaviour that is being talked about as a major factor driving the growth of the consumer goods and services sectors in most African countries. For business, there is good scope to invest in the fast moving consumer goods sector and the franchising of global fashion and food chains is quickly catching up as a trend. l

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Bonnington Hotel & Residences JLT Improves Coverage and Higher Bandwidth The Bonnington Hotel and Residences JLT has upgraded its wireless network, leveraging Aruba solutions to deliver seamless high-speed Wi-Fi connectivity to all business and leisure guests across its hotel rooms, suites and public areas

he deployment has improved wireless internet coverage in the hotel by 95 percent and boosted performance by 85 percent, allowing guests to enjoy internet access across the premises with guaranteed speed, reliability and security.

Prior to the deployment, the Bonnington’s ageing Wi-Fi infrastructure failed to deliver a service that met guests’ expectations, “While the capabilities of our 24Mbps leased line were at the time sufficient, the drop in performance introduced by the wireless part of our network meant guests rarely experienced the speeds we intended to deliver. They often suffered loss of coverage at ‘dead spots’ around our property,” said Mr. Dilhan Devaditiya, IT Manager at the Bonnington. “With Wi-Fi becoming ever more important to our guests, we were eager to raise the quality of this service to the extremely high standard set by the other facilities in our hotel.”

Backed with the support of hotel’s board members, Mr. Devaditiya and his IT team conducted a thorough four month evaluation of solutions from four leading wireless solutions vendors. Aruba was selected on account of two main factors. “For one, both Aruba and its partner Precedence Technologies went out of their way to assist us during the evaluation, consultation and design phases. Even before being awarded the project, they provided us with a level of support and commitment that was truly remarkable. This together with the compact and aesthetically designed Aruba

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wireless Access Point, which blended in nicely in our rooms, made it a rather straightforward decision.”

The deployment included two Aruba 7210 Mobility Controllers of which one was used purely for redundancy; 208 Aruba AP-103H Access Points, one for each room/suite; and 15 Aruba AP-205 APs for the public areas including the lobby, meeting rooms, bars and restaurants. Aruba’s mobility controllers have given the Bonnington’s IT team the ability to centrally manage the entire network which has significantly reduced the strain on resources, while the Access Points have delivered intelligent features such as automatic steering of guest devices to the best AP, minimising interference from cellular networks and wireless intrusion prevention.

“Thanks to meticulous planning, the professionalism of our team, and the quality of Aruba’s products and services, we managed to complete the implementation in just under three weeks. Best of all, there was no inconvenience to guests despite the deployment being carried out during one of the busiest times of the year for the hotel,” said Hamid Shaikh, Co-Founder and Chief Technology Officer of Precedence.

Mr. Graeme Kane Hospitality Business Development Manager at Aruba Networks said, “At Aruba, we pride ourselves on building and establishing long lasting relationships with our clients. To this end, we take the time to understand their technical and business needs before recommending solutions that strike the right balance between technical specifications and costs. Bonnington was no different and I believe we have provided a solution that meets their expectations in terms of performance, ease of deployment, management and aesthetics.” l

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THE PHILLIPS GROUP SPECIALIZING IN LEADERSHIP SOLUTIONS The Phillips Group is a boutique executive search firm specializing in placements in the MENA Region. From assisting Fortune 500 companies acquire and retain top performing senior executives or to advising leading Chief Executive Officers on developing their human capital, The Phillips Group has experience acquiring leadership talent from all four corners of the world.

WE ARE THE EXECUTIVE SEARCH SPECIALISTS. Call us now for high touch bespoke service if you are looking to hire the best in your industry.

M: +971 50 940 7537 T: + 971 4 352 2849 shane@tpgleadership.com www.tpgleadership.com

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