21 minute read
Where social responsibility meets investment
Al Fozan Holding Where social responsibility meets investment
The Kingdom of Saudi Arabia focuses on utilizing its strategic location and expanding the economic base by stimulating the private sector to launch projects and initiatives that accelerate the development of the economy. The country focuses on developing flexible systems to launch strategic partnerships that help attract global investments, create opportunities for qualified national cadres and reduce unemployment rates. It also aims to enable distinguished leadership competencies, increase per capital income, and achieve community well-being.
Within a supportive investment and stimulating economic environment, Al Fozan Holding, a business conglomerate has emerged as one of the well-known family businesses in Saudi Arabia. The company has grown and created a diversified investment portfolio covering many sectors, including industrial, retail, manufacturing, real estate development, and trading.
The Holding company is also known for its leadership in humanitarian work. The empowerment provided to the community by the group has proved its role in contributing to society's welfare. Al Fozan Holding is one of the fastestgrowing success stories in the region, thanks to its integrated economic and social system.
Al Fozan Holding is a business conglomerate which has expertise in business sectors such as industrial, real estate development, retail, trading and more
History and timeline
Al Fozan is one of Saudi Arabia’s most renowned family businesses. The company is driven by an entrepreneurial spirit, unwavering belief, and rock-solid values. Even today, these three pillars continue to be a guiding force in the success story of the Company.
Expansion and diversification
Al Fozan Holding is pursuing a portfolio management strategy, expansion, and diversification for many subsidiaries and emerging companies with promising potential. It also actively seeks to build partnerships and launch joint ventures with major players that enhance its position in the market. With the dynamic transformations in the local and foreign markets, Al Fozan Holding was interested in strengthening its presence as a private company that actively contributes to the development of the Saudi market and the building of a steady national economy.
Diversified activities
the company is known for balancing its social roles with its investment aspirations. All group components follow a straightforward approach that combines business and social responsibility.
Therefore, Al Fozan Social Foundation was established in 2005 as an institutional approach and a comprehensive umbrella for all social responsibility efforts aiming to develop social initiatives that empower the community and serve the economy and the environment.
The social initiatives are providing pioneering experiences in developing education, enabling technology, stimulating creativity, and encouraging innovation.
Al Fozan Holding looks forward to continuing its approach to work and enhance its presence in the economic scene, committed to its position as a supportive entity of the transformation, and as an organization with social initiatives that perform its role towards its society in line with the objectives of the Kingdom's Vision 2030.
Excellent governance
Major international companies tend to follow advanced management methods, which contribute to generating opportunities through new and attractive economic horizons. Therefore, during six decades of its history, Al Fozan Holding Company has been keen to follow elaborate and effective governance based on fundamental values of transparency, equity, accountability, social responsibility, and sustainability.
The system is designed to preserve the rights of all parties, serve the interests of partners, and achieve a positive impact on employees and stakeholders. Moreover, it is committed to the rules and regulations that govern corporate law in the Kingdom. Additionally, it adheres to the principles of governance followed locally and globally.
Integrated quality
Among its various activities, the group's companies have provided high-quality services and products that add value and meet the expectations of their customers and partners by applying high international standards to continue its efforts to maintain the trust, relying on its teams of professionals.
Its commercial companies have also attracted international brands that have established a strong presence in the local and regional markets and are consumer favourites.
In addition, Retal Real Estate Development represented a cosmopolitan model in residential projects and provided a distinguished experience in the real estate sector.
These efforts enabled ‘Retal’, one of the subsidiaries, to gain the trust of its customers as the ‘Best Real Estate Developer’ in the Eastern Province of the Kingdom for two consecutive years, from 2019 to 2021.
Brighter future
Amid this supportive environment, Al Fozan Holding approaches the future with confidence. The dedication of the group's efforts is to expand its reach and explore new horizons. It aims to strengthen its presence in the region and develop further in global markets, guided by its vision of "creating a brighter future for everyone around us".
CONTACTLESS TRANSACTIONS NUMBERLESS CARDS
Numberless Card: Secure transaction is here
IF CORRESPONDENT
Initially, there was a revolution of contactless transactions, but now debit cards and credit cards are going numberless. Increasingly, banks are removing information such as the expiry date present on the back of the card and the 16-digit long number on the front. Some of them are not even It is believed printing them anywhere. For decades, bank cards had that this a largely looked uniform. They were provides the rather utilitarian, with the account customers holder's name, a long number, and with an the "valid from" and "expires end" additional dates, and carried the short code and layer of account number on the front of the security card and the three-digit card security code on the back. Now, with the personal information and numbers printed on the back of the card, it is now more typical to have a rather plain and uncluttered front or even an eye-catching image. A payment service called Curve, in early 2020 launched the "first numberless cards in Europe". The company’s investors were provided these cards that did not have the numbers on them. Since then, Chase has been providing the current account holders with a numberless debit card which has become a huge hit in the UK. It is believed that this provides the customers with an additional layer of security.
While some consumers have lauded the change, others have stated that payments over the phone or online are much simpler. There is a recent trend when it comes to the high street banks.
Earlier this year, Barclaycard had redesigned its credit cards to remove numbers from the front, while a new-look debit card was rolled out by NatWest where "all the usual card info is now on the back".
HSBC, Halifax, and First Direct have also followed suit. Some might wonder that moving the numbers to the back of the card and other design changes were about aesthetics, but for the banks, it's all about wooing the 'Instagram generation' by making these refreshing changes.
However, there are other factors that come into play as well, some of which are a result of the quick rise of digital wallet services like Apple Pay. According to First Direct, the redesign will make it simpler to locate your card when browsing via a digital wallet.
Meanwhile, HSBC stated that it wanted the front card design “to be simple, clean and effective to benefit our customers with disabilities. By moving all the text to the back of the card, we were able to go bigger and bolder with the text without interrupting the front design of the card.”
By moving the numbers to the back there is a level of improved security as the details of your card will be less visible to the people nearby.
Chase, which launched last September in the UK, said, "A customer’s card details are stored behind a secure login on its app, so people are not putting their personal details at risk if they lose their physical card. It adds that should a customer ever need to replace their card details, they can instantly generate new ones in the app."
However, one customer put out a tweet stating that the numberless card was "annoying".
“Each time I pay, I have to open the account and find the number instead of simply looking at a card and typing the number. Pretty pointless bit of security," the customer added.
The bank claims that by tapping the blue card at the top of the home screen and then selecting the "view details" option, you can easily access your card information within the app.
If you are returning or collecting something and are asked for a card number, it says you need to find the transaction in the app and scroll to “card ending with”.
It states you must locate the transaction in the app and scroll to "card ending with" if you are asked for a card number while returning or picking up something.
It further added that most places only need to see the last four digits.
A spokesperson said, "We hear consistently from customers that they view having a numberless card as an advantage in protecting against fraud and theft."
A customer tweeted that shifting to Chase was "the best thing I’ve ever done".
The customer went on to add that if al all there were problems with the numberless cards "they just change the card number remotely, and no need to send one out unless you lose it. If you do lose it, there are no details on it for a scammer to use."
Armen Najarian at Outseer, which specialises in anti-fraud solutions, believes that despite Chase having no numbers on their cards, they are still vulnerable since "digitally" a card number does exist. "In the overwhelming majority of fraud cases, the fraudster never sees the card as these attacks tend to happen online... So, if a card number exists – physically or digitally – it’s up for grabs," he warned.
Santander said it does not currently have any intentions to bring out numberless cards in the UK, despite having introduced them in countries like Mexico.
Guardian Money had gotten in touch with one UK bank which said that they had thought of going the numberless route but later decided against it and backed out.
“Removing all card details forces customers
CONTACTLESS TRANSACTIONS NUMBERLESS CARDS
to obtain these digitally. And moreover, many people are not digitally active,” the bank said.
However, David Griffiths at the payment technology firm Contis said, "Not printing the card numbers on the back of the card is presently a bit of a novelty. But if people come to believe it makes their details more secure, demand for such cards will grow. Primarily, I think numberless cards look neat, and we are going to see more of them because they look neat.”
Why numberless physical card more reliable than traditional physical card? While information like the card number and expiration date, which are typically written on standard cards, would instead be retained in the physical card's chip, the numberless physical card just displays the cardholder's name. These details would be shown on the digital card via the bank's mobile app, further strengthening privacy and security standards, along with the card verification value (CVC2) typically written at the back of traditional cards. To access the necessary information for online buying, cardholders need to log in to the bank's mobile app and confirm their identities.
Why are numbers removed from cards? Card fraud has been a major problem everywhere. Card fraud events cost the global economy approximately USD 27.85 billion in 2018, or roughly 6.86 cents for every USD 100 spent using cards. One of the most popular methods of card electronic wallets of cardholders. The payment process is identical to how it is when utilising current mobile payment options. The bank also provides customers with a numberless physical card to handle their daily needs based on their preferences.
How to use numberless physical card? Similar to how standard physical cards are handled, cardholders and merchants can choose to settle transactions using contactless, chip, or magnetic stripe technology when using a numberless physical card.
fraud entails thieves gaining access to data like the card number and CVV before duping cardholders into disclosing pin codes or one-time authentication passwords provided via SMS for fraudulent transactions made with the card. There is no way for criminals to discover your card number and subsequently carry out a scam to obtain your authentication credentials when numbers are removed and all data is securely encrypted in the EMV chip on the card.
How to apply for numberless physical card? The "digital-first" philosophy is applied to the numberless physical card. Through the online channels offered by the issuing bank, applicants could apply for digital cards, which could then be activated in accordance with the bank's guidelines and linked to the Restrictions on transactions using numberless physical card In addition to the transaction cap set by the bank, certain financial institutions may allow cardholders to customise monthly spending caps
Without even having to open a linked bank account, many numberless card providers allow users to procure a payment card
Leading Spanish bank Banco Santander claims that its numberless card reduces the risk of fraud by over 90%
for each consumption category using their mobile banking apps based on their individual spending patterns. The system will automatically cap the transaction once their corresponding consumption amounts have been reached. In order to dramatically increase the effectiveness of financial management, cardholders can also examine transaction records in realtime using the bank's mobile app.
What future holds for numberless cards? Every major economy in the world is seeing a rapid increase in the number of banking and fintech companies introducing cutting-edge numberless payment card services. Customers find the advantages of holding a numberless card to be more alluring as the ecosystem develops because competition keeps prices low and services profitable. Mastercard launches numberless card in Pakistan and MEA Building on the partnership announced in Pakistan in 2020, SadaPay and global payments technology company Mastercard are issuing numberless and contactlessenabled cards in the Middle East & Africa (MEA) region which is said to benefit users to transact in a simple, fast and secure way.
The announcement further strengthens Mastercard’s commitment to promoting financial inclusion in emerging markets and encouraging the adoption of secure digital payment methods.
The new offering has been designed to provide SadaPay users with a safe and simple way to transact both online and offline. The physical version of the card is completely numberless, both front and back, thus providing the ultimate protection from the prospect of theft of personal and financial information. Cardholders can use the card to make e-commerce payments as their card details are safely stored within the SadaPay app.
The launch of the numberless card is the first implementation of Mastercard’s Digital First program in Pakistan and the wider MEA region. This technology will set the stage for a more advanced digital payment landscape in the country offering cardholders with contactless and safer ways to transact.
“Our focus is to deliver a safe and secure digital experience to all cardholders. Mastercard is a trusted partner that enables issuers and merchants to leverage technologies such as the numberless cards to ensure safety of e-commerce and over-the-counter transactions in order to protect consumers and merchants against fraud. We are truly excited to be launching the first numberless card in Pakistan and the MEA region in partnership with SadaPay. We continue to partner with digital players across the region to launch exciting digital solutions and share innovations to advance financial inclusion, bringing us closer to a world beyond cash,” said Ngozi Megwa, Senior Vice President, Digital Partnerships MEA, Mastercard.
editor@ifinancemag.com
BANKING AND FINANCE FEATURE E-COMMERCE MENA RETAIL MARKET
Platforms like TikTok may serve 20 million micro, small, and medium-sized enterprises, and account for 40% of retail spending
C-commerce to revolutionize MENA market
IF CORRESPONDENT
Social media and chat app penetration in the Middle East and North Africa (MENA) is high. It is natural for traders to capitalize on these technologies and cultural shifts.
MENA's trillion-dollar economy is transforming because E-commerce and Connected Commerce (C-commerce) are becoming extremely popular and may serve 40% of the retail market and connect 20 million micro, small and medium-sized enterprises in the geopolitical area.
Zbooni, an E-commerce platform in MENA, introduced the first white paper in the region on the flourishing sector and claimed businesses could improve sales by trading on the platform and engaging with channels that customers prefer to watch.
The platform shared opinions and insights from leading brands like Checkout.com, Tik Tok, and Chalhoub Group. The research found C-commerce in action in social, chat, and messaging apps like Whatsapp and Snapchat, which provide both online and physical stores with a way to convert real-time conversations into sales.
The perks of C-commerce
The CEO of Zbooni, Ramy Assaf, said the region missed the first wave of E-commerce and has been trying to catch up with the rest of the world. But he added that MENA is taking full advantage of the new wave of C-commerce. "We are at the cusp of an exciting retail transformation built around personalized selling. C-commerce has the potential to serve businesses across a wide variety of industries, whether they are brick-and-mortar, online-only or omnichannel. C-commerce shines when
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BANKING AND FINANCE FEATURE E-COMMERCE MENA RETAIL MARKET
there is an interaction preceding a transaction," he added.
He claimed that many in the region are hooked on social and chat apps. Ramy iterated that C-commerce is the future, and shopping will naturally evolve to be as simple as chatting online.
There is a remarkable finding in Zbooni's data compilation. C-commerce helped traders and customers connect online and offline. Moreover, they had a sales conversion rate of over 80%, while traditional E-commerce had only 3% of potential customers.
Digital marketing through apps
Group director and partner at Al Maya Group Kamal Vachani believe that digital media is a powerful tool in boosting retail sales in the area.
He added that in this digital era, people are comfortable buying online. E-commerce and C-commerce blew up exponentially during the pandemic, and businesses expect the trend to continue. The Al Maya Group director remarked that people are scrolling through different platforms to get the best deal on their purchases.
The rise of E-commerce
In the first quarter of 2022, the E-commerce sector grew by double the rate of point-of-sale transactions in the UAE, as per Network International.
Network International is a leading enabler of digital commerce in MENA. They pointed to increasing online spending, including credit and debit card transactions. A large chunk of it is digital payments in the government sector, but transactions at supermarkets, restaurants, and convenience stores were significant.
Ian Jiggens, head of advisory and information services at Network International, said that the phenomenon was not just because consumers were taking businesses from physical stores online; they were also transitioning from cash to digital payments.
The next phase: C-commerce
Human-to-human conversations have higher sales conversion than bots or impersonal experiences on a website. C-commerce allows a merchant to peddle and speak with his customers and provides an enhanced sales experience with fewer sales friction, sales conversion, and increased customer loyalty while reducing potential refunds and returns.
TikTok in Arabia
TikTok's middle east user base is skyrocketing. Almost 95% of web users in MENA use Instagram, YouTube, and TikTok. TikTok, which uses short-form content less than two minutes duration, has been exceptionally popular. The byte-sized clips are highly informal and lucrative and make engagements exciting. Some TikTok creators earned more than an average S&P 500 CEO.
TikTok has reached billions of subscribers rapidly. Some studies suggest that TikTok was more popular than Google in 2021. The platform's success is evident because its competition keeps mimicking its features. For example, YouTube introduced shorts, and Instagram launched Reels to compete with TikTok.
Users spent about 80 minutes daily on the Chinese platform, the most duration among all social media apps. TikTok has also grown 50% in 2021 and had a 100% rise in the number of people using the digital space for discoveries.
The statistics are mindboggling because TikTok was already successful in 2020 and had a large user base. The rapid acceleration in tech adoption during the pandemic could be responsible for some of that conversion. But the tech updates must have aided other platforms as well. So, why is TikTok such an outlier?
The intimacy of short-form content
The algorithm of TikTok is robust and can learn a user's affinities and interests and quickly personalize their feeds. It also has one of the simplest designs, with the interface displaying only one video at a time, making navigation easy. These uncomplicated features draw a lot of young people to the platform.
Plus, the short-form video format is time-conserving, engaging, and similar to natural communication. Short videos are like quick chats with friends, while long ones are like formal presentations.
TikTok has pioneered short-form video content in MENA, which has seen a massive adoption of the format, with 20% of digital media time spent on it.
The real secret behind TikTok's
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Global social media stats
• More than half of the world now uses social media (58.4%) • 4.62 billion people around the world now use social media, and 424 million new users have come online within the last 12 months • The average daily time spent using social media is 2h 27m
TikTok usage statistics
• TikTok users spend 80 mins per day in the age bracket of 4 to 15.
Others spend 52 minutes per day • In the US, the users spend 500 mins monthly • TikTok gets more than 100 billion average monthly video views • 9 out of 10 users open the TikTop app daily. For US users, it is 8 out of 10 • Each session lasts 4.9 minutes or more, which is more than other social media platforms
Source: Techjury
success is its creator community. The app has made content creation democratic and opened a creative outlet for everybody. Almost anyone can make a TikTok video, which feels very personalized.
TikTok's micro-influencers are its foundation. They have created quality content while expressing themselves and building a robust online community. Many studies show that while making a purchase, consumers value microinfluencer endorsements more than celebrity endorsements.
The impact of influencers
Micro-influencers promote brands they care about, spread brand awareness, and boost sales through C-commerce. Over 50% of consumers in MENA cite micro-influencers as critical to their buying decisions. TikTokers can monetize their content and endorse products while building lasting relationships with their audience.
TikTok's reach in the market is so strong that brands can no longer afford to overlook it. Historically, brands followed where their consumers went. They advertise on TV, Google search, Facebook, YouTube, and Instagram.
Brands will have to adopt TikTok for advertisements sooner or later. Big brands only spend 5% of their ad revenue on a platform where customers spend 20% of their time and provide 80% sales conversion.
TikTok has already planned and has introduced Spark Ads in MENA. It's a new native ad display format that amplifies the community's relevant content.
Brands can use Spark Ads to amplify original creative videos and build an effective content strategy. They also provide the Duet and Stitch features which enable the community to reinvent, rebuild and reinterpret their community.
Another major event was TikTok's partnership with the e-commerce building platform Shopify. It's a bridge between Shopify merchants and TikTok influencers.
Shopify's Vice president of product Satish Kanwar said that even Shopify merchants without a strong TikTok following could connect with new customers using authentic and genuine TikTok content.
TikTok will begin testing new commerce features to make discovering Shopify merchants easier for users in MENA and shop their products within the app as a part of the partnership.
C-commerce is now a pivotal force that merchants utilize to expand their audience and reach their customers, thanks partly to the Coronavirus pandemic. Market research company eMarketer expects the C-commerce sector to soar by 36% to $36.62 billion in the US.
As users discussed and learned more about new devices and virtual technologies, the consumption of technology-related material on the site increased by 302% last year across the Gulf Cooperation Council region. According to TikTok's most recent What's Next report, beauty-related content surged by 169% in the area, with many users posting makeup lessons and skin-care routines. Additionally, among the top content categories, food and fashion saw growth of 197 and 287%, respectively.
The rise of #TikTokMadeMeBuyIt has been one of the platform's most noticeable recent trends. As of June 2022, videos that included the hashtag had received a combined 13 billion views worldwide.
An Indian ex-pat in Saudi Arabia, Mohammed Sabir KT, said he books all his flight tickets from agents who advertise on TikTok.
Even small businesses like Japanese cheesecake franchise Uncle Fluffy in Dubai are utilizing the network for boosting brand recognition and to gain fans to capitalize.
