RAK Business Magazine June, July 2021 by New Generation Media

‫مجلــة أعمــال رأس اخليمــة‬

ISSUED BY RAK DED, ISSUE NO. 13, JUNE, JULY 2021

STREIT GROUP

THE WORLD’S LEADING ARMORED VEHICLES MANUFACTURERS

HALF A BILLION DIRHAM INVESTMENT PLAN TO DEVELOP TOURISM PROJECTS IN RAS AL KHAIMAH

ESTONIA

UAE AND ESTONIA SHARE A LONGSTANDING FRIENDSHIP AND PARTNERSHIP

STUDEIS IN

GCC TRADE RELATIONS WITH T USA AND CHINA 2001-2018

STEPS TO REBOOT YOUR BUSINESS TO ACHIEVE POSTPANDEMIC RECOVERY READING IN HOW BUSINESSES CAN TURN CRISES TO THEIR ADVANTAGE

ABDULLAH AL-AWADHI

ENTREPRENEURSHIP IS NOT INHERITED! RAK DED ANNOUNCE100% EXEMPTIONS

RAK Business issued by Ras AlKhaimah Department of Economic Development to support and develop the business environment and highlight best practices in Ras Al Khaimah.

SUPERVISION SH. Mohamed bin Kayed AlQasimi EDITOR IN CHIEF Dr. Abdulrahman Alshayeb Alnaqbi MANGAGING EDITOR Aisha Obaid Alayyan EDITORS Maryam Haji Mohamed Nebras Shafik AboZidan

NEW GENERATION TEAM Khawla Ibrahim Abdulaziz Alelewi Zina Abboud Zainab Shieha Dareen Abu AlKheer Maher Safyeldin

050 899 5669 The topics mentioned express the opinion of its author, and do not necessarily represent the opinion of the Department of Economic Development in Ras Al Khaimah. Despite efforts to investigate accuracy, the magazine does not accept responsibility for any errors in the information provided.

VISION: Ras Al Khaimah to be the preferred destination for doing business in the region. MESSAGE: Planning and organizing economic activities, augmenting investment promotion efforts, and the business environment competitiveness to achieve sustainable economic development in the emirate based on qualified staff and integrated smart systems that are hinged on knowledge and innovation to achieve community happiness. STRATEGIC OBJECTIVES: Promote diversified and sustainable economic growth by attracting and encouraging investment. Developing the business environment in accordance with global competitiveness standards. Developiing function of business control and consumer protection. Developing services, enhancing customer experience and providing added value. Expand the institutional efficiency of institutional support services . Boosting the culture of creativity and innovation, spreading knowledge and institutional excellence. ORGANIZATIONAL VALUES: Positive citizenship: Taking responsibility and meeting all customers’ needs and beyond if possible (serve with a smile). Institutional happiness: Continuously strive to win the happiness of our employees, customers, partners, and community (Happy Society). Creativity, innovation: We want our employees to take initiative with every new, creative and innovative Idea (Be proactive and innovative). Integrity and Transparency: Develop an institutional governance framework and adopt it as an integrated ideology. Sharing Knowledge: One team with unified knowledge we all share (share your knowledge).

info.ded@economic.rak.ae www.ded.rak.ae

Rakded_ae

FROM THE EDITOR UAE HAS MADE REMARKABLE ACHIEVEMENTS OVER THE PAST YEARS IN VARIOUS FIELDSAND BECAME A LAND OF OPPORTUNITIES FOR THE REALIZATION OF AMBITIONS OF ENTREPRENEUR, INVESTORS AND YOUNG PEOPLE

THE “NEXT 50 YEARS” AFTER THE MINISTERIAL RETREAT: WHAT NEXT?

Dr. AbdulRahman Al-Naqbi

The publication of a new edition of the National Agenda and a number of strategic projects has given rise to many headlines trumpeting the UAE’s government eagerness to lead the world within the next 50 years. These projects were launched at the 2021 ministerial retreat, “The Next 50 Years”, chaired by Their Highnesses Sheikh Mohammed bin Rashid Al Maktoum and Sheikh Mohammed bin Zayed Al Nahyan. Their Highnesses affirmed that the next fifty years require greater speed and greater achievements to complete the journey which started in the desert of the UAE and will end on the desert of Mars. It is an inspiring journey for the Arabs of today and for future generations. It brings with it the need for good planning and an ambitious vision of the future. It is not surprising then that the government teams have space (welcome) only for those who will exert 10 times more efforts in the next phase of development. “The Next 50 Years” Retreat coincides with the preparations by the UAE to celebrate its golden jubilee. These celebrations themselves reflect the direction given by the well-informed UAE leadership in the introduction of the UAE’s model for the next fifty years of development. This is to be accomplished through the mobilization of energies, resources and capabilities across multiple agencies and sectors. The aim is to design new systems and work plans which will realize all the features of the leadership’s comprehensive strategic vision. All social groups, entities, and institutions of the UAE will take part in the implementation of these plans to ensure that by the centenary celebrations, the UAE will be the most distinguished country in the world and its inhabitants will have a quality of life unrivalled anywhere else on the globe. UAE has an attractive economic environment, a developed infrastructure, flexible legislative frameworks that support business growth, and most importantly, a tolerant and connected society. In addition, we have a culture that cares for the happiness of the human being and the family and this makes the UAE a home for everyone who lives within its borders. We have a leadership that sets a clear vision represented by His Highness Sheikh Mohammed bin Zayed Al Nahyan”, His Highness Sheikh Mohammed bin Rashid Al Maktoum noted. The economy and other sectors were at the heart of discussions, plans and visions. The focus was on building a competitive economy for the future. These discussions and plans centered around how to enhance the competitiveness of the national economy and on establishing a future economic model based on knowledge and innovation. The economy of the future will provide an incubating and stimulating environment for entrepreneurship, as well as being one that attracts global investments across all economic sectors. This strategy builds on and reflects the UAE’s competitiveness and global position according to various economic indicators. These will be enhanced through designing the future of the business environment, stimulating entrepreneurship, shaping future foreign trade and partnerships, attracting investment, talents and skills, and, importantly, enhancing the capabilities of the next generations of UAE nationals so that they can become global leaders in the economy of the future. We extend great thanks and appreciate the efforts of all work teams and committees at all levels and of our society itself for their participation in laying the groundwork for the next fifty years. By enhancing the competitiveness of the country’s economy, together we will make the UAE, by any measure, one of the greatest places in the world and a leading nation within the next 50 years. RAK BUSINESS

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RAK BUSINESS

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CONTENTS

Issue No. 13 JUNE-JULY 2021

PANORAMA UAE-Industry On the Verge of a New Era

10 The last few years witnessed a remarkable development of relations linking UAE and China. Estonia... A success story

12 One of the fastest growing European countries, and one of the countries with the most startups.

BUSINESS STREIT GROUP...The world’s leading armored vehicles manufacturers

22 Started its operations in Ras Al Khaimah in 2005 and expanded over the past years to be the leading armored vehicles manufacturers in the world.

GCC trade relations with the United States and China 20012018

26 Statistical studies to understand the commodity composition of Gulf trade, foreign direct investment flows, trade balance and Gulf economic exposure.

26 6

COLUMNS 18

Technologies Rule the List of Billionaires

Abdullah AlAwadhi... Entrepreneurship is not inherited!

Half a billion Dirham investment plan to develop tourism projects in RAK

OVER THE TOP 30 If you have enough ambition, do

TOURISM 40 These projects aim to meet the

not delay entering the business world, especially since UAE has prepared the ingredients for success.

aspirations of visitors looking for safe and holistic experiences amid the new reality of the travel market.

4 steps to reboot your business for postpandemic recovery

Direct flights link Ras Al Khaimah to new destinations

34 The companies that will survive will have a pivotal role in resuming economic growth and providing job opportunities in the coming years.

43 Fly to Nine Russian cities, including Moscow, and new flight to Kyiv, in addition to a new partnership with “Fly Egypt”for direct flight to cairo.

Repercussions of (COVID-19) Pandemic on the Global Economy

As an accountant... How do you get through your first year?

Reading on how to take advantage of crises

New Hiring in UAE market

RAK BUSINESS

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PANORAMA ECONOMIC

NEWS SPORTLIGHT PARTNERS

MUHAMMAD BIN SAUD PRAISES THE EFFORTS OF RAK STATISTICS CENTER

is Highness Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, Chairman of the Executive Council of the emirate, visited the Ras Al Khaimah Center for Statistics and Studies recently. His Highness was received by Dr. Abdul Rahman Al-Shayeb Al-Naqbi, Chairman of the Board of Directors of the Ras Al Khaimah Center for Statistics and Studies, and Dr. Muhammad Abdul Latif Khalifa, Secretary-General of the Executive Council of the Emirate of Ras Al Khaimah, Vice-Chairman of the Board of Directors of Ras Al Khaimah Center for Statistics and Studies, and Najwa Najeeb Yacoub, Executive Director of Ras Al Khaimah For statistics and studies. His Highness, during the visit accompanied by Sheikh Arhama bin Saud bin Khalid Al Qasimi, Director of the Media Department of His Highness’ Offic, was briefed on the progress of work and the most prominent achievements of the center, in addition to the plans, projects and strategies of the center for the next stage. His Highness listened to a detailed explanation of the center’s objectives in terms of organizing and building a modern and integrated statistical system to support development policies and the requirements of the emirate’s sovereign and competitive classifications, as well as economic studies and various electronic systems to improve the UAE’s global competitiveness

and develop the statistical system. His Highness the Crown Prince of Ras Al Khaimah praised the efforts made by the center through preparing studies and developing the statistical system in the emirate, adopting the best modern technologies in the field of data and statistics, and working jointly with partners in local and federal agencies, private sector companies, as well as international institutions to enhance the concept of future foresight. For the state, according to the standards of global competitiveness reports

ECONOMIC PANORAMA

NEWS

RAK DED ANNOUNCES 100% EXEMPTIONS FOR SPECIFIC SECTORS Ras Al Khaimah Department of Economic Development (RAKDED) has announced that exhibition organizers, wedding halls and event venues will be exempt from 100% of their licensing fees, violation charges and late payment penalties for 2021. The decision is in line with directives from His Highness Sheikh Saud bin Saqr Al Qasimi, The decision is in line with directives from His Highness Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, to support businesses and boost economic activity in the Emirate. The directives indicate that the exemption remains valid for one year from the

date of implementation, allowing the relevant establishments to benefit from the waiver in the event that they need to renew their license as per the expiration dates. The new exemptions follow an earlier set of measures that were approved last year, which waived 50% of trade licensing fees, as well as exempting establishments from violations and late fees.

RAKEZ ... LAUNCHES A BUSINESS SET-UP PACKAGE FOR E-GAMING ENTREPRENEURS Ras Al Khaimah Economic Zone (RAKEZ) has introduced its e-gaming business set-up package, which supports investors in the fast-growing gaming value-chain such as software and hardware developers, publishers, streaming and support services providers. As an introductory offer, RAKEZ is offering same renewal rate for life and a free three-year residency visa. “The Middle East has a fast rising online gaming population and this presents promising opportunities for business and collaboration in the e-gaming arena. The newly launched package covers 18 e-gaming core and support service activities, and investors can select up to 3 activities in their primary licence with access to RAKEZ Compass Coworking Centre that offers open, private and scalable workstations with the opportunity to collaborate with like-minded professionals. The e-gaming business set-up package starts from AED 7,725. For more information on the package, please visit www.rakez.com.

RAK ZOOM .. PROGRAM PROMOTES COMMERCIAL ESTABLISHMENTS (RAKDED) has launched a new initiative named ‘RAK Zoom’ in an effort to support businesses and promote RAK-based commercial establishments locally and internationally. The initiative serves to boost the competitiveness of local businesses, in line with RAKDED’s strategy to enhance the reputation of local products and introduce them to regional and international markets. The initiative included preparing promotional material for commercial establishments through the Corporate Communications Office. RAK BUSINESS

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RAK DEPARTMENT OF FINANCE TO DIGITALISE PROCUREMENT Ras Al Khaimah (RAK) has shortlisted RheinBrücke’s flagship product MeRLIN (Material eResource Linked Information Network) to digitalize its public procurement systems for enhanced efficiency, accountability, and transparency across all operations. The collaboration is well-aligned with the UAE leadership’s ongoing efforts to maximize efficiencies across public and private sector industries through digitalisation. Digitalisation is a shift in consumer preferences during the pandemic has disrupted the industry across the Middle East and this trend appears poised to grow. According to the International Data Corporation, the Middle East, Turkey and Africa (META) region is expected to spend $20 billion on digital transformation initiatives this year and up to $40 billion by 2022. Under the terms of the project charter, Department of Finance, Ras Al Khaimah (RAK) will leverage MeRLIN, a strategic sourcing solution that offers seamlessly integrated sourcing process automation. In addition, MeRLIN is mandated to assist the department with supplier relationship management and planning and offer advanced analytics support in its digital transformation journey. 10

RAKBANK REPORTS A NET PROFIT OF AED 113.9 MILLION FOR Q1 2021 The National Bank of Ras Al-Khaimah (RAKBANK) announced a consolidated Net Profit of AED 113.9 million for Q1 2021, an increase of 70.8% compared to Q4 2020. As of 31 March 2021, Total Assets stood at AED 53.2 billion, an increase of 0.9% year-to-date due to enhancements in Gross Loans and Advances, lending to other banks and investments. Total Income amounted to AED 800.9 million, decreased by 0.8% compared to Q4 of 2020. Additionally, the Operating Expenses for this quarter decreased by 10.2% when compared to Q1 of 2020. Commenting on the Bank’s financial results for Q1 of 2021, Peter England, Chief Executive Officer of the National Bank of Ras Al-Khaimah, stated:”The Bank’s performance this quarter was solid and driven by a strong momentum from all of our business verticals as this was evident in the year-on-year decrease in Provision for Credit Loss by AED 123.4 million. RAKBANK is on a recovery path post COVID and will continue to maintain that trajectory while retaining healthy capital levels. Additionally, RAKBANK’s Asset Portfolio proved its resilience and is a testament to the Bank’s sustainability and adaptability, which is clearly articulated in the diversification of our earning streams.”

ECONOMIC PANORAMA

NEWS

RAK CERAMICS’ OGM APPROVES 7.5% DIVIDENDS FOR 2020 The ordinary general meeting (OGM) of Ras Al Khaimah Ceramics (RAK Ceramics), chaired by Sheikh Khalid bin Saud Al Qasimi, Chairman of the Board of Directors of the company, has approved paying cash dividends, equivalent to 7.5% of the capital, for 2020. The cash dividend distribution stands at 7.5 fils per share, aggregating at a total amount of AED 74.527 million. The Group CEO of RAK Ceramics, Abdallah Massaad, explained that the company’s total revenues amounted to 2.35 billion dirhams, a decrease of 8.7% as a result of a decrease in the revenues of Q2 due to the closures associated with the Corona pandemic, and excluding the results of Q2, revenues increased by 1% to reach 1.94 million dirhams, in Saudi Arabia, revenues increased 57.9 % YoY due to the introduction of different tile sizes and focus on wholesale and retail sales as well as the imposition of anti-dumping duties. The markets witnessed a recovery in

Q3 of 2020, and reached pre-pandemic levels in the tiles and sanitary ware sectors, however, the performance of tableware continued to be affected by the second wave of the pandemic and the closure of the hotel sector, as the overall gross profit margin decreased by 120 basis points by 32.0 y-o-y due to lower revenue and plant downtime losses during closures in Q2 of 2020. “he added. Abdullah Massad revealed that the total gross profit margin in Q4 of 2020, increased by 80 basis points annually, by 34.4%, recording 77 million dirhams in profits, with an increase in the company’s sales by 5% compared to 2019, and increased by 15% compared to Q3 of 2015. The gross profit margin for tiles recorded its highest level at 34.8%, and the rise in gross profit margins reflects the improvement in efficiencies and streamlined operations, which makes the company in a strong position to continue to recover from the impact of Corona pandemic.

RAS AL KHAIMAH MAINTAINS CREDIT RATINGS, TO RETURN TO GROWTH IN 2021-2024 S&P Global Ratings has affirmed Ras Al Khaimah’s sovereign credit ratings of “A-/ Stable/A-2”, with the emirate’s economy expected to return to growth at a rate of about 2.5 percent from 2021 to 2024. The stable outlook reflects S&P’s expectation that the RAK government will maintain its “prudent fiscal stance over the next two years” and that the gross domestic product (GDP) growth will be at moderate levels. “We expect RAK’s economy will return to growth… supported by a faster return to domestic normalcy in the UAE, thanks to a swift and broad rollout of COVID-19 vaccinations,” the ratings agency said in a report.

RAK BUSINESS

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ECONOMIC PANORAMA

SPOTLIGHT

THE LAST FEW YEARS WITNESSED A REMARKABLE DEVELOPMENT OF RELATIONS LINKING THE UAE AND CHINA. ESPECIALLY IN VITAL SECTORS AND FIELDS WHICH AR

UAE-INDUSTRY ON THE VERGE OF A NEW ERA

UAE’s economy stands on the verge of a new era. One that will be marked with a dynamic industrial growth spurred by a raft of new local and foreign investments.

his, thanks to the launch of Operation 300bn, the new strategy from the Ministry of Industry and Advanced Technology (MoIAT) which seeks to fortify the nation’s well-established industries like petrochemicals, metals and advanced machinery & equipment, while stimulating new levels of productivity and performance in strategic sectors like healthcare and food security. The Strategy will pay special focus on unleashing a wave of locally-driven future industries such as space, medical technologies, and hydrogen. When it comes to space, the success of the Emirates Mars Mission, and the data that is now being collected by the Hope Probe will facilitate a new era of UAE-driven interplanetary research, product development and international collaboration. Supported by strong public investment, the opportunities are as limitless as the universe into which Hope was launched.

A REGIONAL LEADER Biotechnology also offers an avenue of vast potential. The UAE is already a regional leader in driving Foreign Direct Investment (FDI) into biotech. Several research and innovation centers have shown the potential for genomics and precision medicine, which can uncover new areas for growth and experimentation. Then there’s what’s been described as “the ultimate green fuel”. Being an early adopter of clean hydrogen could be a game-changer for the UAE and those who

invest in it early. Hydrogen projects are already well underway in Dubai and Abu Dhabi. And the UAE is also the first country in the region to lay down a regulatory framework hydrogen-powered transport. Industrial opportunities in this sector are vast.

GLOBAL COMPETITIVENESS The ambitious, three-pronged approach to the industry aims to diversify and turbocharge the nation’s already vibrant base, increasing its global competitiveness, ramping-up its resilience and generating new levels of in-country value, focused on future industries. Ultimately, the strategy aims to more than double the industrial sector’s GDP contribution to AED300 billion by 2031 and elevate the UAE’s status to a global hub of unrivalled industrial expertise. Owing to a forward-thinking leadership, the foundations for accelerating industrial growth have long been set. The UAE has become one of the most attractive investment propositions for international investors, thanks to a regulatory and logistical framework, flexible financing solutions, unrivalled Information and communication Technology, and transport infrastructure and 21 industrial economic trade zones which are conducive to sustainable business growth.

GOVERNMENT’S SUPPORT Furthermore, the government’s consistent support to players in the industrial sector has incentivized the globe’s biggest industrial companies to

RAK BUSINESS

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SPOTLIGHT

UAE has contributed to shaping a transformative future for the fourth revolution technologies to build a better future for all

set up base in The Emirates across sectors that cover the entire industry spectrum from renewable energy to pharmaceuticals; from aerospace to machinery and equipment; from plastics to food and beverage (F&B). The key to releasing this fountainhead of economic activity from within the nation’s well-established industrial base is to accelerate the adoption of advanced technologies and leverage Fourth Industrial Revolution (4IR) solutions and applications. Thanks to the leadership’s launch of the UAE Strategy for the Fourth Industrial Revolution (4IR) in 2017, the integration of advanced technologies and solutions into the UAE’s industry has been well underway. Combined with the new momentum of Operation 300bn, a spirit of entrepreneurship and innovation is sure to weave into the fabric of industry in the UAE. The Strategy’s numerous initiatives and financial enablers will attract more local & international players to enter the fray. This will help realize one of the key goals of the strategy: improving the UAE’s Competitive Index Performance ranking. The UAE ranked 35th globally in the Competitive Industrial Performance Index 2018, with the industrial sector contributing AED133 billion to GDP in 2018, which represents an 8.4 percent share of the total. The value of industrial exports reached approximately AED240 billion in 2018, while expenditure on Research and Development (R&D) in the industrial sector reached 1.3 percent of GDP. Figures from the same year revealed that the number of industrial companies operating in the UAE reached more than 33,000 – 95 percent of which were SMEs. The UAE’s industrial sector encompassed 737,000 employees within the same timeframe. These figures reaffirm the abundance of potential investment opportunities, combined with the opportunities for more growth and success. It is on all these points that MoIAT’s strategy is building and seeking to improve by opening up the nation to innovative and forward-looking investment opportunities.

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HIS HIGHNESS SHEIKH SAUD BIN SAQR AL QASIMI, SUPREME COUNCIL MEMBER AND RULER OF RAS AL KHAIMAH, RECEIVED RECENTLY, JAAN REINHOLD AMBASSADOR OF ESTONIA TO UAE AND HIS ACCOMPANYING DELEGATION, WHO HAD CALLED ON HIM TO OFFER GREETINGS, AT SAQR BIN MOHAMMED CITY. DURING THE MEETING, SHEIKH SAUD EXCHANGED TALKS WITH THE ESTONIAN AMBASSADOR ON WAYS TO ENHANCE COOPERATION BETWEEN THE TWO COUNTRIES ACROSS ALL SECTORS

ESTONI 16

ECONOMIC PANORAMA

PARTNERS

ESTONIA

A SUCCESS STORY

UAE and Estonia share a longstanding friendship and partnership, underpinned by economic ties through trade and investment. Given the UAE’s shift towards a digital economy and Estonia’s deep experience in the field, the prospects for deeper collaboration are immense.

Prepared by: Mussa Abdel Moneim Metwally Economic Consultant -RAKDED

RAK BUSINESS

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SECOND: KEY ECONOMIC INDICATORS: The following table shows the most important economic indicators for the Republic of Estonia, according to the country report prepared by the International Monetary Fund for the State of Estonia in January 2020 before the COVID-19 pandemic. 2016

Statement

FRIST: RANKING ACCORDING TO GLOBAL COMPETITIVENESS INDEXES: Estonia has ranked high in some global competitiveness indicators to consolidate its presence as one of the world’s advanced economies: Rank

Year of Evaluation

Ease of doing business

2020

World Digital Ranking

2020

2018

Competitiveness Indexes

Competitiveness

Human Capital Index Global Competitiveness Report Enabling Environment pillar- ICT adoption Flexible work arrangements index Digital skills index Digitization legal framework index

4 3 6

2020

2018

2019

Actual

2020

2021

Projected

)GDP (EUR bn

21.7

23.8

27.8

29.6

31.3

Real annual growth rate

%2.6

%5.7

%4.8

%4.0

%3.2

%3.0

Unemployment rate

%6.8

%5.8

%5.4

%4.7

%4.8

%0.3-

%1.4-

%0.5-

%0.2-

%0.0

%9.2

%8.3

%8.1

%7.6

%7.2

General government debt-to-

Ras Al Khaimah has decided to dedicate the year 2021 to Estonia and virtual visits dedicated to different economic sectors are planned to take place in every quarter of 2021 to introduce Estonia and strengthen economic ties between entrepreneurs of UAE and Estonia. The Estonian Minister of Foreign Trade and Information Technology Raul Siem said: “I want to thank my colleagues from the Ministry of Economy of the United Arab Emirates and Ras Al Khaimah Chamber for helping to make today’s event happen. The pandemic has highlighted the importance of meaningful connections, both physical and digital. Therefore, I am especially glad that today the bilateral relations between Estonia and the United Arab Emirates are developing faster than ever. In 2019 in Abu Dhabi we opened the first Estonian Embassy in the Arabian peninsula. It is a clear sign of our interest towards closer political and economic contacts between the two nations”

2017

GDP ratio General government debt-toGDP ratio

)Balance of Payments (relative to Gross Domestic Product Balance of Payments )Ratio to GDP( Balance of services Current balance

16.1

Billion US dollars The volume of merchandise exports of the Republic of Estonia year 20

billion US dollars The volume of merchandise imports of Estonia year 2019

7.8

Billion US dollars The volume of commercial service exports for the year 2019

5.6

Billion US dollars The volume of commercial service imports for the year 2019

%3.5-

%3.40- %3.70- %4.70- %5.70- %6.40-

%7.60

%7.10

%7.20

%7.30

%3.20

%1.70

%0.90

%0.50

%0.40

• The last three years have witnessed high growth rates. These have exceeded the potential growth rates. This is due to Estonia following an expansionary fiscal policy and the adoption of structural reforms. This has also resulted in low unemployment rates. - Public debt rates are very low. - The inflation rate is higher than the average inflation rate in the European Union. - The most important exports are machinery, equipment and devices. - The economic prospects are favorable in the near future, with a growth rate of 4% and 3.2% during 2019 and 2020. However; in the medium term, economic activity is expected to slow with an expected growth rate of 2.8%, driven by the decline in external demand for the country’s exports, low productivity, and a decrease in the supply of highly skilled labor.

THIRD: FOREIGN TRADE OF ESTONIA The volume of commodity exports of the Republic of Estonia amounted to about USD 16.1 billion in 2019, with an annual average of USD 15.15 billion during the period 2013-2019. Manufactured goods exports constitute about 70% of its total exports, half of which are exports of machinery and transport equipment. • The volume of merchandise imports to the Republic of Estonia amounted to about USD 18 billion in 2019, with an annual average of USD 17.2 bil-

ECONOMIC PANORAMA lion during the period 2013-2019. The structure of imports is similar to that of exports, as imports of manufactured goods represent about 70% of its total exports, half of which are imports of machinery and transport equipment. • The volume of commercial service exports reached about USD 7.8 billion in 2019, with an annual average of USD 6.9 billion during the period 2013-2019. Travel and transportation services constitute about 60% of the total exports of commercial services. • The volume of imports of commercial services reached about USD 5.6 billion in 2019, with an annual average of USD 4.8 billion during the period 20132019. Travel and transportation services constitute about 58% of total imports of commercial services. Development of Merchandise Exports Structure of Estonia 2013

16.2% 12.5%

70%

2014

16.6% 12.8%

69.7%

2015

16.9% 10.7%

71.6%

2016

16.3% 9.4%

73.3%

2017

16.7%

2018

15.4%

2019

12%

50%

4.5

2.0

2.4

re-export

54.4

60.9

95.6

Non-oil exports-to-imports ratio

0.03

0.01

Trade volume

224.63 278.31

339.08

Trade balance deficit

106.83 152.52

142.94

Development of trade between Estonia and the United Arab Emirates 300

2017

2018

Imports

75% 100% Fuels &Mineral Products

Non-Oil exports

2019

Re-exports

TB deficit

FIFTH: NEW AREAS OF COOPERATION According to the website of the Ministry of Economic Affairs and Communications of the Republic of Estonia, the relations between the two countries are getting stronger. This is especially the case with Ras Al Khaimah, which is benefiting from the experiences of the Republic of Estonia in making the transition to a digital economy.

34%

2014

49%

36%

2015

48%

38%

2016

48%

38%

2017

46%

39%

2018

46%

39%

45%

25%

Non-oil exports

50%

Iron & Steel

241.0

Development of Manufactured Goods Export Structure of Estonia

2019

215.4

150

Others

Manufactured Products

2019

Million UAE AED Re-export volume

2018

165.7

68.2%

25% Agricultural Products

2013

95.6

2017

Imports

66.6%

16.6% 13.9%

2.4

Million UAE AED The volume of UAE non-oil exports to Estonia in 2019

Statement

225

70.4%

17.3%

241

Million UAE AED The volume of UAE imports from Estonia for the year 2019

PARTNERS

SIXTH: REPUBLIC OF ESTONIA IN BRIEF

39%

50% Chemical

Machinery & Transport Equip.

75% Textiles

100% Clothes Others

FOURTHY: TRADE RELATION BETWEEN THE UNITED ARAB EMIRATES AND THE REPUBLIC OF ESTONIA: The following table shows the development of the volume of foreign trade between the two countries during the past three years:

Location: It is located in the Baltic Sea region in northern Europe. To the north it is bounded by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia (343 km), and to the east by Lake Peipus and Russia. Population: 1.32 million Area: 45,277 sq km Capital: Tallinn (formerly known as Reval) Administrative divisions: The Estonian territory is composed of 15 counties Cities of significance: Tartu , Narva, and Pärnu Economy: High-income economy. Per capita income (PCI) of 20,000 EUR. Membership in regional/ international organizations: European Union (since 2011), North Atlantic Treaty Organization, Organization for Economic Co-operation and Development, World Bank, and International Monetary Fund RAK BUSINESS

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BUSINESS

Technologies Rule the List of Billionaires ELON MUSK RANKED 31ST ON THE FORBES LIST LAST YEAR, SURPRISINGLY HE RANKED IN SECOND PLACE FOR THE WORLD’S RICH THIS YEAR

TECHNOLOGY MAE IN RAK STUDIES

nvestors in technologies start to dominate the rankings of the world’s billionaires. A comparison of this year’s data with figures from five years ago (2016) shows a clear shift from traditional industries and diversified portfolios towards a bet on new technologies. While five years ago, the top five richest people in the world according to the Forbes ranking included just Bill Gates (1) and Jeff Bezos (5), this year’s TOP5 only comprises one person not concentrating on technologies - Bernard Arnault who controls the luxury brand Luis Vuitton. In the top ten, ‘technologists’ have taken seven positions compared to minority four places five years ago. This is the result of the industry analysis of billionaires’ wealth made by Gulf Brokers

BUSINESS

In 2016, Forbes estimated Gate’s fortune at USD 75 billion, he was on the top of the world’s billionaire ranking. Another technology entrepreneur was on the fifth spot, Jeff Bezos, the founder of Amazon, being about USD 30 billion behind Gates. The six technology billionaires in the top twenty in 2016 also included Mark Zuckerberg (USD 44.6 billion), Larry Ellison (43.6) and Google co-owners Larry Page (35.2) and Sergey Brin (34.4). Today, technologies absolutely dominate the rankings of the richest people on the planet. Nine technology billionaires appeared in the top twenty. The richest man is Jeff Bezos with his wealth estimated at USD 177 billion by Forbes. However, an absolute technology comet is a man whom practically nobody knew ten years ago. Even five years ago, he could only dream of top spots. Last year, he ‘only’ took 31st position on the Forbes list. This year, he is the second with USD 26 billion behind Jeff Bezos. We are talking about Elon Musk whose name is connected with two famous companies that can undoubtedly rank among the key technology players: the car company Tesla and the spacecraft manufacturer SpaceX. Musk’s wealth has grown from USD 24.6 to 151 billion within a year. This is largely caused by the unprecedented growth in Tesla’s shares. Last year, one share could be bought for about USD 145 while today it is over USD 730, which is about five times more

TECHNOLOGY

RAS AL KHAIMAH GOVERNMENT MEDIA OFFICE WINS HONORARY GOLD AWARD Ras Al Khaimah Government Media Office (RAKGMO) has won an Honorary Gold Award in the Outstanding Management category at the Middle East and North Africa Stevie Awards 2021, which were held under the patronage of Ras Al Khaimah Chamber of Commerce and Industry in a virtual event on June 2, 2021. The award came in recognition of RAKGMO’s notable role in promoting the Emirate of Ras Al Khaimah and advancing its status and reputation in every sector, positioning the Emirate as a destination of choice for living, working, investing and visiting. It also recognizes the extraordinary role the Office plays in supporting the business community in Ras Al Khaimah through its media strategy and initiatives that help promote various key sectors locally, regionally and internationally. The award also represents thanks for RAKGMO’s efforts to support the government in providing a nurturing environment for companies to thrive, and its contributions to the Emirate’s comprehensive and sustainable development. “Empowered by the great support and forward-looking vision of His Highness Sheikh Saud bin Saqr Al Qasimi, UAE Supreme Council Member and Ruler of Ras Al Khaimah, Ras Al Khaimah Government Media Office remains committed to developing innovative and advanced media tools capable of enhancing various key economic sectors and firmly placing the Emirate on the world map, in line with His Highness’ directives,” said RAKGMO’s Director General, Her Excellency Heba Fatani. A total of 156 awards W handed out during the second annual MENA Stevie Awards, going to candidates from 17 countries across the Middle East and North Africa region. The MENA Stevie Awards is the region’s only awards program dedicated to recognizing and rewarding business innovation and is open to companies and individuals from 17 countries. The Stevies are considered the “Oscars of the business world”, as they honor outstanding achievements in the workplace through various programs such as the International Business Awards, which were launched 19 years ago RAK BUSINESS

J U N E , J U LY, 2 0 2 1

REPERCUSSIONS OF (COVID-19) PANDEMIC ON THE GLOBAL ECONOMY COVID-19 continues its unprecedented spread. Even now, right across the globe, the virus is leaving many victims in its wake. As of February 26, 2021, the total number of confirmed cases had reached about 112.5 million cases with deaths at about 2.5 million. These numbers are increasing daily. The emergence of vaccines against COVID-19 and the start of vaccination programmes represent a glimmer of hope for a victory in the confrontation with the virus. However, the risks remain high in light of rumors about new mutations of COVID-19. WHO estimates that despite the availability of vaccines, the Coronavirus may continue to exist until 2022, and therefore humanity is still challenged to confront and overcome the virus. The pandemic is still a global health challenge. On the economic side, the precautionary measures to confront the spread of the Coronavirus, like social distancing policies, lockdowns and isolation, whether partly or completely, have led to unprecedented declines in the levels of production, consumption, investment and international trade. This economic crisis is deemed to be the most severe in the global economy since the Great Depression in the thirties of the last century. On the human development side, there has been a reversal of the gains made in this regard, especially in the fight against extreme poverty. In 2019, pre-the pandemic, the global economic situation was not healthy, as the trade tensions between the United States of America and China brought about a slowdown of rates of global growth and trade. This helped exacerbate the global economic crisis in general. The growth forecast for 2019 has been cut to 3% by the International Monetary Fund (IMF). This would be the lowest growth rate since the global financial crisis in 2008. This is despite the fact that central banks in developed countries have adopted an expansionary monetary policy, with extremely low and even negative interest rates. As a result of this slowdown, oil prices on the global market have hiked up by about 13%, despite the sanctions imposed on Iran. At the onset of the crisis, by the end of the first quarter of 2020, many countries tended to impose a total or near total lockdown to stop the virus spreading. This action led to an unparalleled downturn in the global economy’s performance. Con22

sequently, international organizations estimated the size of the projected contraction in the global economy at rates between 5-8% for the year 2020. Under these circumstances, and given the difficulty of continuing the total closures, countries resorted to achieving a balance between following precautionary measures to confront the virus and reopening economies by the end of the second quarter of 2020. Despite the global economic deterioration during the second quarter, the economic performance was not as bad as expected. The IMF issued an amendment in October 2020 projecting a global economy contraction by 4.4%, which is less than what was projected in its report in June 2020. During the third quarter, economic recovery indicators showed a global improvement, and vaccines have arrived reviving hopes to respond in earnest to the COVID-19 pandemic. Accordingly, the projections of the global economic contraction have recently been reduced by the IMF to 3.5%. Throughout the Great Lockdown, as labelled by the IMF, the volume of global trade decreased by more than 10% during the first quarter. The lowest recorded decline was April, in the second quarter, when global trade contracted by 15%. This decline resulted from the lower overall demand, the deterioration of tourism and hospitality services, and public shutdowns causing disruption to supply chains and access to raw materials. World trade began to recover in the third quarter, but with the volume of trade down 3.5% on 2019, global trade remained significantly lower than pre-crisis levels. The WTO reports show the severe damage caused by the Covid-19 pandemic to international trade and global supply chains in many centers of global production inputs. The world, therefore, is witnessing a trend towards deepening recessions in both developed and developing countries.

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In this context, the WTO expected that the global trade in commodities will fall off, due to the Covid-19 pandemic, by almost 9.2% in 2020. Meanwhile, international trade is expected to recover by 7.2% next year, provided that appropriate policies are adopted to support international trade, the challenges facing the multilateral trading system are overcome, and outbreaks of the disease are controlled. With regard to inflation, the prices of medical supplies and services have risen during the crisis. As for other commodities, the impact of the overall decline in demand, resulting from the economic downturn, was greater than the impact of the disruption in supply chains. The inflation rate in advanced economies continued to be lower than its levels before the crisis. In emerging markets and developing countries, the rate of inflation decreased sharply at the beginning of the crisis and rose again as things developed. Oil prices witnessed a sharp decline at the beginning of the crisis because of the drop-off in economic activity and the decline in overall demand. The price reached about 45% of the 2014 base year price. The labor market witnessed a huge number of job losses. According to the International Labor Organization, about 255 million full-time jobs were lost. In respect of jobs in the informal sector, which employs about 2 billion workers, the International Labor Organization estimates that nearly 80% of workers have been affected by the various closure measures taken to prevent the spread of the virus. The IMF has estimated that by the end of 2022, cumulative income per capita will fall by 13% in advanced economies compared to 18% for low-income countries and 22% for emerging and developing countries, excluding China. This projected blow to income will increase the number of people in extreme poverty in the developing world by millions. Nevertheless, the stimulus programs adopted during the crisis has helped pre-

VISION

DUE TO THE CORONA PANDEMIC, THE VOLUME OF INTERNATIONAL TRADE DECREASED BY MORE THAN 10% IN THE FIRST QUARTER OF 2002, AND THE PEAK OF THE DECLINE WAS DURING THE MONTH OF APRIL OF THE SECOND QUARTER BY ABOUT 15%

vent a more catastrophic deteriThe war is long with the oration of economic conditions. Corona pandemic, and we These programs amounted to must continue to pump about 24% of GDP in advanced stimulus aid and maintain economies, about 6% in emergfinancial conditions to ing markets, and less than 2% in support the flow of funding low-income countries. The stimand liquidity to families ulus programs have diversified to and companies include cash and in-kind transfers to affected companies and families, wage subsidy, expansion of unemployment insurance coverage, tax deferrals, allocations to banks of non-performing loans, and central banks lowering interest rates, re-borrowing and purchasing financial assets.The IMF has recently projected a global GDP growth of 5.5% in 2021 and 4.2% in 2022. The projection is based on the decrease in the number of confirmed new infections and deaths globally and the increase in the number of individuals vaccinated. However, it will be a long and uncertain rise, as the global economic recovery faces many challenges. Among the most important of these are the slow spread of vaccines, inequality between countries in the distribution of vaccines, and the possibility of exacerbating risk levels in the financial markets in light of escalating debt levels accompanied by increased risk of default, whether by governments, companies or individuals. The key to addressing the negative effects of this crisis is to help individuals preserve their livelihoods, while striving to ensure businesses that are viable after the crisis do not collapse. This requires not only financial measures, but also the maintenance of favorable financial conditions through expansionary monetary and fiscal policies, which support the flow of finance, liquidity and credit to households and companies RAK BUSINESS

J U N E , J U LY, 2 0 2 1

STREIT G

THE WORLD’S LEADING ARMORED VEHICLES MANUFACTURERS INTERVIEWD BY: KHAWLA IBRAHIM

STREIT Group has started its operations in Ras Al Khaimah since 2005 and has expanded until it became the world largest facility for armored vehicles RAKBUSINESS Magazine met Mr. Ahmed Yacout, Business Development Manager at STREIT Group, to further shed light on this pioneering facility through the following interview. Tell us more about your remarkable success in INDEX and NAVDEX 2021. STREIT Group has been keen to participate in IDEX since 2009, and has been the exclusive diamond sponsor of IDEX 2021. The company insists, in every participation, to launch a distinguished group of products commensurate with the event significance. This year, we unveiled four new locally manufactured vehicles, STORM, DHABI, NISR, and CONDOR. STORM was the first fully electric tracked vehicle manufactured in the UAE, which could be used in a wide range of specialized military and civilian purposes and in the harshest environments. DHABI is a MRAP vehicle equipped with the best technologies from around the world. NISR is a mounted infantry troop carrier and ground support vehicle. It includes unique features, as our engineers have spent the past two years developing it using the latest technologies from across the globe. CONDOR is a newly designed MRAP that provides ballistic protection up to STANG Level 2, upgradable to STANG Level 3. How did this success and excellence begin? STREIT Group was founded in Canada in 1992 by Guerman Goutorov, the CEO, with a team of 8 persons. The Group’s purpose was to produce armored vehicles providing more protection. The company’s first product was a cash-in-transit vehicle, with high-quality and affordable specifications. In 2000 the company’s production witnessed 24

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MADE IN RAK

STREET GROUP STARTED ITS OPERATIONS IN RAS AL KHAIMAH IN 2005 AND EXPANDED OVER THE PAST YEARS TO BE THE LEADING ARMORED VEHICLES MANUFACTURERS IN THE WORLD

GROUP

RAK BUSINESS

J U N E , J U LY, 2 0 2 1

THE PROMISING ATTRACTIVE INVESTMENT ENVIRONMENT IN UAE ATTRACTED US TO MOVE HERE, SPECIFICALLY TO RAS AL KHAIMAH

a further expansion reaching 40 products. It was also expanded geographically by moving its headquarters to the United Arab Emirates in Ras Al Khaimah in 2005. In the UAE, we took advantage of the pioneering investment climate that allowed us to become the largest private armored vehicles manufacturer in 2012. Why Ras al-Khaimah? After the expansion of the company’s business, we tended to expand geographically to cover a wide area of the world. Ras Al Khaimah has a strategic geographic location, where foreign investments are supported by the government and a huge package of facilities and smooth procedures are provided. This is in addition to the advanced infrastructure, logistical services, professional manpower, ease of transportation, availability of sources of raw materials and the expertise needed to achieve successful operations. In Ras AL Khaimah, we have a large area embracing our huge factory, a place fits the expansion we are witnessing over the days. Today, STREIT Group owns the largest factory in

the world for manufacturing armored vehicles in Ras Al Khaimah. We have an office in Dubai and a group of offices around the world in addition to 6 factories that manufacture thousands of vehicles every year. We have more than 2000 employees of about 30 different nationalities, and we have 40 specialized engineers in the Research and Development Department who follow up the market demands and oversee product quality. What is so special about STREIT Group? The facility is equipped with the latest CNC manufacturing technology and laser cutting processes, with automatic and semi-automatic production lines. All components required for armored vehicles, including steel input and raw materials, can be manufactured within the facility. STREIT is characterized by a sizeable area, where more than 120 million spare parts for vehicles can be stored. The Group has grown steadily over the past three decades to become the leading armored vehicles manufacturer. We started in 1992 with the vehicles factory only. In 2015 we opened our own glass factory which was equipped with the latest European technologies and machinery following the highest international standards, especially in computer numerical control and laser cutting operations. All the factory operating procedures are ISO certified. In 2018 we opened STREIT Marine for boats pro-

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MADE IN RAK

use. The products include cash-in-transit vehicles, VIP armoured vehicles, and amphibious vehicles which are used in special and rugged places where no vehicles, but ours, can reach. STREIT also produces a wide range of troop carriers, mine-resistant ambush protected (MRAP) vehicles, luxury/ semi-armored/ fully armored vehicles made to order, security vehicles, and armored boats that are designed to provide effective protection in high-risk situations. STREIT manufacturing facility provides designing, manufacturing, training, testing, and storing requirements for armored vehicles within one complex, which is the largest in the world. It also has a permanent and strategic inventory. The STREIT production capacity is 400 vehicles per month, with 1000 vehicles in its inventory. The company’s markets are Africa, the Middle East and South America.

duction. Today, our Group consists of STREIT Security Vehicles, APG (the STREIT’s glass manufacturer), STREIT Marine, and soon STREIT Training Academy. What is the idea behind this variety? The company’s goal is to be self-sufficient and to limit dealing with foreign suppliers, and thus guarantee quality. Before 2015, we used to import armored protection glass, but now we have the second largest armored glass manufacturer in the world. Our glass factory covers our needs and the needs of other companies to manufacture armored products of high quality and safety. How about cooperating with other auto companies? The strategy of STREIT Group aims to provide integrated security solutions to customers through collaborative partnerships, technological innovations and advanced services. Therefore, we cooperate with auto companies around the world, such as Ford, from which we have a certificate since 2008, We also have cars of our own complete production. What are your most prominent products? Do you offer custom manufacturing? What is your production capacity? The company produces various models of armored vehicles for commercial, military and semi-military

What about armoring tests and standards? All vehicles undergo internationally recognized ballistic tests and impact tests. The vehicles are Ballistic Protection certified up to STANG 3 for military tactical vehicles, armored luxury vehicles, and special-purpose vehicles according to the Protection Level VPAM BRV 2009 VR7. The company is moving towards greater expansion, what are the highlighted features of this upcoming expansion? In line with its vision to provide innovative security solutions following the latest technologies, STREIT Group continues to expand based on business demands and the research it carries out, notwithstanding the challenging times in 2020. The Group has witnessed an increase in demand for its products and services, with an impetus to develop its high-tech products. It has completed two phases in its expansion, and it is currently preparing for the third one, which is scheduled to be completed in the last quarter of this year. In the third phase, six buildings will be added increasing the current area of 86,000 square meters by 65,000 square meters. These buildings will include a body manufacturing center, vehicle store, R&D Department, showroom, boat production workshop, finished product storage area, automatic steel and laser cutting facilities, and trucks and commercial vehicles production line. Moreover; STREIT Group will soon open a training academy to provide advanced safety courses and practical training RAK BUSINESS

The company’s business in Canada was launched in 1992 from a team of eight people until it became in 2012 the The world’s leading armored vehicles facility in the world The year 2000 witnessed a further expansion of 40 products. Also,The company witnessed a geographical expansion in 2005 by moving to UAE in the Emirate of Ras Al Khaimah in Toda, our Group consists of STREIT Security Vehicles, APG (the STREIT’s glass manufacturer), STREIT Marine, and soon STREIT Training Academy

J U N E , J U LY, 2 0 2 1

mine the degree to which the GCC economy depends on import and their degree of exposure to the world.

FIRST: INTERNATIONAL TRADE RELATIONS IN THE 21ST CENTURY:

GCC TRADE RELATIONS WITH USA AND CHINA 2001-2018

PREPARED BY RAK CENTER FOR STATISTICS AND STUDIES

ver the past two decades there have been structural changes in the foreign trade accompanied by a considerable openness to the international trade and capital movement. Subsequently, roles and functions have changed. Several countries have played prominent role in the international trade, the most important of which were developing countries, while the role and influence of some countries have declined. As for the countries of the Middle East and North Africa, unfortunately, they did not take advantage of the enormous possibilities provided by the international trade to develop and diversify their production bases and stimulate their economic growth. Instead, they have deteriorated and been preoccupied with concerns unrelated to their economic future and social stability. This was due to many structural or political reasons resulting in a drop in their World Bank’s rankings. On the other hand, the United Arab Emirates, Saudi Arabia, and a limited number of countries were able to adopt successful policies in trade and development. They took advantage of their stable security and economy to attract capitals and implement their plans successfully. In this report, we try to highlight the most important indicators of foreign trade and foreign direct investment in the countries of the Gulf Cooperation Council (GCC) for the period 2001-2018. This report also tries to deter-

While the American and Chinese economies contribute more than 40% of world trade, the United States of America, especially this decade, has launched trade and other wars against its competitors and allies in various countries of the world. The USA has imposed customs duties on imports from China, Russia, The EU countries, Canada, Mexico and others. At the beginning of 2018, and as part of an undeclared protectionist policy, The USA imposed customs duties on some of these countries at rates ranging between (1050%), with a total value exceeded $ 280 billion at the time. The purpose of this policy was to reduce the US trade deficit and support its companies and the employment rates thereof. The other countries has responded by a reciprocal increase in duties imposed on their imports from the USA with a value exceeded $120 billion. In the wake of this agitation, the United States has expressly announced the adoption of a strict trade policy that is closer to protectionism than to the freedom of trade on which the principles of the WTO are based. Consequently, the United States imposed other customs duties on steel and aluminum imported from China, at rates close to 25% and 10%, respectively, in March 2018. The EU countries have not been spared these customs duties despite the friendly relations and alliance, since China has imposed additional duties on its imports from these countries. Thus, reactions between the two countries continued to the present time, driven sometimes by economic or political motives. The reasons behind that are the increase in the US trade deficit with China, the great expansion of China at the expense of the US interests in the Middle East and North Africa, in addition to signing dozens of trade agreements between China and various countries of the world, including EU Countries

SECOND: GCC TRADE RELATIONS WITH THE UNITED STATES AND CHINA: 1. Development of GCC foreign trade with the United States: The GCC foreign trade with the United States has achieved a positive development during the period 2011-2018 compared to the period preceding 20012010. The average annual increase in the value of their merchandise exports to the US was about 53%. This percentage represents more than double the 22% increase

BUSINESS

STATISTICS STUDIES

achieved in total Arab exports to America. Qatar and the United Arab Emirates achieved the highest increases of 182% and 176%, respectively, followed by Kuwait and the Sultanate of Oman. It is worth noting that this high percentage remains only the quarter of exports of those countries to China, which amounted to more than 200%. See Table (1). Table (1): Rates of GCC exports to the United States during the period 2001-2018 (million dollars) 20102001

20182011

Increace Rate %

Saudi

22786

31261

United Arab Of Emirates

1668

4598

176

Sultanate of Oman

619

1029

Kuwait

4060

7364

Qatar

418

1177

182

928

1202

30479

46631

Country

Bahrain Gross rate *Ref: UNCTAD, Foreign Trade Data.

2. Development of GCC foreign trade with China: The GCC trade with China remains at the forefront with an increase rate of 214% for the same period. Qatar and the UAE also topped the GCC countries in their exports to China, with an increase of 838% and 502%, respectively, followed by Kuwait 325% and the Sultanate of Oman 191%. The average value of the GCC merchandise exports increased from $28,672 million during the period 2001-2010 to $89,969 million during the second period. This exceeded the average value of exports to the United States, which amounted to $46,631 million in the second period, compared to $ 30,479 million in the previous period, see Table (2) Table (2): Rates of GCC exports to China during the period 2001-2018 (million dollars) 20102001

20182011

Increace Rate %

Saudi

17099

40085

134

United Arab Of Emirates

2695

16230

502

Sultanate of Oman

5659

16465

191

Kuwait

2284

9719

326

Qatar

738

6912

837

Bahrain

196

558

185

28672

89969

214

Country

Gross rate *Ref: UNCTAD, Foreign Trade Data.

1668

Million dollars It is the average of United Arab Emirates’ exports to the United States During the period 2018 - 2001

2695

Million dollars It is the average of United Arab Emirates’ exports to Chhina During the period 2018 - 2001

35353

Million dollars Total Arab and Gulf merchandise exports to the United States in 2018

3. Development of imports of GCC countries from global markets: Table (3) below shows the following facts: - GCC imports are relatively higher than the total imports of non-GCC Arab countries during the period 2014-2018. The annual value of GCC imports amounted to $ 527,542 million, 63% of the total value of Arab imports, compared to $320,238 million in the non-GCC Arab countries. - The annual average of Arab imports from the United States reached $ 69,193 million during the period 2014-2018, with an annual rate of nearly 8%, compared to $124,757 million from China, at an annual rate of about 15% for the same period. - Imports declined in all GCC countries during the period 2014-2018, with the exception of Kuwait and Qatar, where imports increased by 16% and 13% respectively.

THIRD: COMMODITY COMPOSITION OF THE GCC AND ARAB TRADE WITH THE UNITED STATES AND CHINA 1. Commodity composition of the GCC and Arab trade with the United States: -Such as mineral fuels, mineral oils and their refinements, wild resources and energy mineral waxes. On average, 46% of the total GCC and Arab commodities were exported to the United States during the period 2014-2018. If aluminum and materials made therefrom, natural and agricultural pearls, precious and semi-precious stones, precious metals, metals coated with precious metals and materials made therefrom, junk jewelry, coins, decorative accessories, knitted clothes, crochet and fertilizers were all added, the average would be 73% of the total exports of these countries to the United States of for the years 2014-2018 . RAK BUSINESS

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Table (3): Imports of GCC countries from the global market during the period 2014-2018 (million dirhams) Country

Rate

2014

2015

2016

2017

2018

Saudi

173,834

174,675

140,170

134,519

137,065

152,053

)21(

United Arab of Emirates

276,025

263,417

270,960

268,000

253,000

266,280

)8(

Sultanate of Oman

27,881

26,556

21,280

27,157

25,412

25,657

)9(

Kuwait

31,036

30,952

30,679

33,569

35,864

32,420

Qatar

30,479

37,120

38,682

29,641

34,298

34044

Bahrain

22,258

17,673

15,287

17,391

13,100

17,142

)41(

Total GCC imports

561,513

550,393

517,058

510,009

498,739

527,542

)11(

Total Arab imports

930.100

864.300

811.100

808.800

824.600

847780

)11 (

Percentage

20142018‫ـ‬

Volatility Rate %

*Ref: Arab Monetary Fund, Joint Arab Economic Report 2019.

- Total Arab and GCC merchandise exports to the United States increased to $ 35,353 million in 2018 compared to $15,307 million in 2014, an increase of 131%, noting that the organic chemicals item was the only item that recorded a decline of 19% during the aforementioned period. 2. Commodity composition of the GCC and Arab trade with China: - Such as mineral fuels, mineral oils and their refinements, wild resources and energy mineral waxes. On average, 82% of the total GCC and Arab commodities were exported to China during the period 2014-2018. If organic chemicals, plastics and materials made therefrom, precious metals, magma, volcanic ash, salt, sulfur, soil and stones, plaster, lime and cement were all added, the average would rise to 94% of the total mentioned exports for the same years. - Total Arab and GCC merchandise exports to the China increased to $138,587 million in 2018 compared to $135,708 million in 2014, an increase of 2%, although there has been a decrease in the items of mineral fuels, mineral oils and their products and refinements, wild resources, mineral wax, fertilizers, and aluminum and materials made therefrom with rates of (3%), (38%) and (41%), respectively. - The total Arab and GCC exports to China are clearly different in the commodity composition needed by the Chinese market compared to the US one. Despite the fact that both of them are similar in the first item (mineral fuels, mineral oils and their products and refinements, wild resources and mineral wax).

FOURTH: FOREIGN DIRECT INVESTMENT (FDI) FLOWS TO THE GCC COUNTRIES. 30

138,587 Million dollars Total Arab and Gulf merchandise exports to China In the year 2018

22,191

Million dollars Foreign direct investment flows to the Gulf countries decreased by %23 over the period from 2001 to 2010

40%

Increasing foreign direct investment flows to the United Arab Emirates in the period from 2010 to 2018

Table (4) below shows the following facts: - The FDI flows to the GCC countries decreased to $22,191 million for the period 2011-2018, compared to $28,673 million for the period 2001-2010, with a decrease rate of 23%. - The rate of flows to the GCC countries / the rate of Arab flows increased from 58% in the first period to 61% in the second period. That was a result of the significant decline in flows to non-GCC Arab countries for reasons related to security, economic stability, transparency and others. - There has been a noticeable decline in the rate of flows to Qatar (91%) and Saudi Arabia (50%) in the second period compared to the first period. In contrary, the flows to the rest of the GCC countries increased especially Kuwait (355%) and the UAE (40%).

FIFTH: BALANCE OF TRADE AND ECONOMIC EXPOSURE OF THE GCC COUNTRIES. Table (5) below on the economic indicators of the GCC countries shows the following: - A positive trade balance for the GCC countries for the entire period despite fluctuations, thanks to the presence of an important oil sector with a diversity of income-producing economic sectors and activities. - A decrease in the total foreign trade of the GCC countries by 10.4% during the period 2014-2018 following the decrease in the value of exports, especially in the years 2015-2017. The GDP of these countries has increased by 0.5% for the entire period. - The level of exposure of GCC countries to outside world increased at about 87% during the period 2014-2018. This made them face some challenges, but they were able to cope due to the advance planning, the strong economy, and abundant resources.

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STATISTICS STUDIES

CONCLUSION:

Table (4): Rates of foreign direct investment flows to the GCC countries for the years 2001-2018 (million dollars) Country

2010-2001 2018-2011

Increace Rate %

Saudi

16,353

8,199

(50.0)

United Arab of Emirates

6,843

9,556

40.0

Sultanate of Oman

1,241

1,653

33.2

Kuwait

273

1,243

355.3

Qatar

3,002

272

(90.9)

Bahrain

961

1,268

31.9

Rate of flows to the GCC countries

28,673

22,191

(22.6)

Rate of flows to the Arab countries

49,212

36,454

(25.9)

58%

61%

flows to the GCC /Arab countries

* Ref: UNCTAD, Data on Economic Indicators and Foreign Direct Investment.

Table (5): The GCC economic exposure of foreign trade (2014-2018) (million dollars) Details

2014

2015

2016

2017

2018

Total value of exports from GCC countries

990.0

687.7

639.8

764.7

855.9

Total value of imports from GCC

561.5

550.5

517.2

510.3

534.7

Total foreign trade of GCC countries

1551.5

1238.2

1157.0

1275.0

1390.6

Trade balance of GCC countries

428.5

137.2

122.6

254.4

321.2

GDP of GCC countries at current prices 1642.9

1388.6

1470.6

1458.9

1651.4

ot erusopxe cimonoce CCG eht fo xednI 94.4 )%( dlrow edistuo eht

89.2

78.7

87.4

84.2

- * Ref: Arab Monetary Fund, Joint Arab Economic Report 2019.

References: 1. International Monetary Fund, Foreign Trade Trends 2019, and other years. 2.Arab Monetary Fund, Joint Arab Economic Report 2019, and other years. 3.The Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf, Foreign Trade Statistics of the GCC Countries, 2018, and other annual reports. 4.UNCTAD, Foreign Trade Statistics 2019, and other years. 5.UNCTAD, economic indicators and foreign direct investment data 2019, and data years. 6.World Trade Organization, World Trade Statistical Review 2019.

All countries, including the GCC ones, seek to diversify their economies and increase their exports to generate surpluses. The purpose of which is to achieve a sustainable development and serve the future generations. Global and American statistics and reports were unanimous in the fact that China is in a marathon race with the United States, as China has become the first trade partner for many of the US allies in the Middle East, North Africa and other regions of the world. China seeks to exclude the US from the region by completing the Silk Road, taking advantage of the region conflicts and the way the US deals with them. To win the race, China follows the investment and flexibility policy in managing its energy and relations. It has invested nearly $ 123 billion in the region since 2013. In addition to the above, the following was noted: 1. The percentage of merchandise exports from the GCC countries to the United States has increased by about 53% during the period 2001-2018, compared to 214% of exports to China for the same period. 2. The percentage of the GCC imports from the rest of the world has decreased by (4.8%) during the years 2014-2018. This has helped achieve a surplus in the GCC trade balance by an average of $ 253 billion for the same period making these economies stronger. 3. The rate of foreign direct investment flows to the GCC countries has decreased to $ 22,191 million for the period 20112018 compared to $ 28,673 million for the period 2001-2010, at a rate of (23%). It has decreased in the Arab countries for the same two periods by (26%), which led to an increase in the percentage of Gulf / Arab flows from 58% in the first period to 61% in the second period. 4. A remarkable openness in the GCC economies to the outside world reached an average of 87% during the period 2014-2018 RAK BUSINESS

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OVER THE TOP

Entrepreneurs DEVELOPMENT SELF-GROWTH

BUSINESS

ENTREPRENEURS

AL PHENIQ TRADING & REPAIRING & FIXING SAFETY EQUIPMENT LLC IS A COMPLETE MEP CONTRACTING SOLUTIONS AND TRADING COMPANY ESTABLISHED ON JANUARY 2007, ESTABLISHED BRANCHES OFFICE IN FUJAIRAH, UMM AL QUWAIN, SHARJAH

ABDULLAH AL-AWADHI

My father is my role model, and my ambition has no limits

At a time when many young people tend in their prime to fiddle around for fun, Abdullah Al-Awadhi spends most of his time with workers, engineers, professionals and administrators at their work sites. He seeks to seize every moment to increase his knowledge and refine his experience at work, to the extent you may think he is an older person.

INTERVIEWD BY: KHAWLA IBRAHIM

s part of its efforts to crystalize entrepreneurial young experiences, RAKBUSINESS magazine met Abdullah Al-Awadhi, Vice Chairman of Al Pheniq Group, to shed light on his distinguished experience in business and finance. “Parents may pave the way for their children to enter the world of business, but it is not necessary for them to bequeath the successes. It takes determination, solid will, and resolution to preserve the success that the parents began. Despite my young age, I learned from my father and I owed him a lot. He taught me how to be patient, humble, and determined in achieving goals. The environment he provided me with were not an impulse to rely on him and stand aside contenting with the luxury he bestowed upon me by his efforts and hard work. I have always been looking forward to following his example. His success has driven me to overcome all difficulties and give up inaction. I stood close to my father, and I learned and acquired from his experience which many young people are eager to learn from,” Abdullah Al-Awadhi said. I started business at the age of fifteen At the age of fifteen, Abdullah said he was fascinated by his father’s talks about work and by his way of dealing with employees and workers. He seized every opportunity to spend more time with his father in workplaces. The father felt his son’s tendency towards work, and

thus, he used to take him during school holidays to meet the group’ employees and suppliers. His passion led him to spend more and more time at those sites. That is where the dream began about having the knowledge, experience, skill, and leadership talent of his father. His ambition was drawing him to the stage in which he is a leader who wisely controls the nuts and bolts of work. I was graduated to all management levels After high school and completing the national service, Abdullah Al-Awadhi practically started working with his father, and he gradually moved between all administrative tasks. He first worked as a representative accompanying the company’s representative to learn about all his duties. Then he got trained in the finance and the real estate departments. He also spent two months with every manager of the group companies to closely know all the work details. Thus, he was graduated from one level of management to another until he reached the senior management along with his father. He was deservedly appointed as the Vice Chairman of the Board of Directors. “It is true that the way my father paved for me may be a solid foundation to start from, but at the same time he taught me to start from scratch to stand steadily on the ground. In the business world, you should know the smallest details about your work to dive deep in the sea of success,” he said. He continued, “In the ladder of life, there are priorities and necessities that you must work on. I, therefore, RAK BUSINESS

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how to project science on the ground and to identify the joints in which scientific theories intersect with practical reality. Thus, I worked on the intersection of knowledge for the good of the Group’s work,” Abdullah answered. My father taught me the values of humility “My father instilled many values and principles in me, the most important of which are patience, self-reliance, and continuous self-development,” Abdullah noted. Al-Awadhi was greatly influenced by his father in a way that made people who knew him five years ago unable to recognize him now because of the great change made to himself. He changed dramatically in shape, style, communication, and conversation, as he stated, and became more capable of bearing big responsibilities. “In the past, I was like some of sons of businessmen who feel proud because they have all means of luxury and comfortable life, but my father insisted on teaching me the fact that it is necessary to be humble. He always used to repeat to me the word ‘humility...humility’. Thankfully, I have now reached what I am,” Abdullah commented.

decided to continue my educational attainment, which is an important basis for consolidating success and refining knowledge. I chose to study business administration at the American University of Ras Al Khaimah. Today, I am in the third year pursuing my education and work together. I am also working on combining the scientific theories of business and administration with the extensive experience I gained from my direct involvement in the labor market in my father’s companies.” We overcome difficulties by ambition and strong will Regarding his ability to coordinate between work and study, Abdullah confirms that ambitious and strongwilled people, will be able to overcome difficulties and challenges that come their ways. “I organized my study courses and the times of my lectures in a way that allows me to be present at work sites every day and follow up the workflow,” he said. Is there any conflict between the management methods and foundations you learned at the university and the ones of your father? “My father has an experience which spanned for decades and he faced all circumstances. It may be difficult to apply theories away from extrapolating reality and objective conditions of work. Even if there is a conflict, discussion and dialogue will prevail over any situation. It is true that studying is important and acquiring knowledge is an urgent necessity, but it is important to know 34

I start my day early in the morning “I learned from my father the necessity to start my day in the early morning, for livelihoods know their ways to people with the first rays of dawn,” he noted. After the Fajr prayer (dawn prayer), Abdullah said he used to go to the workers’ accommodation to make sure they were at work sites, and later to the company’s office to follow up on any procedures or works which should be finished. While eating breakfast with workers, he made sure to be close to them to know their needs and learn about their requests, suggestions and problems, if any. Entrepreneurship is not inherited! Can the profession of a businessman be inherited, so to say? Do children carry the same success genes? “This is not the case at all. Success is not inherited as much as it is devoted by education, work, perseverance and self-development. For example, we have companies for cleaning, construction, air conditioning, and for other activities. My father worked and succeeded in these activities at his time. However, we, the future generation and the generation of information technology, and due to the great technical development that has affected all aspects of life, we have wide horizons in the world of technology, and this helps us a lot in our businesses,” Abdullah answered. 97 Eats! ..Coming soon Concerning his projects and plans for the future, Abdul-

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If you have enough ambition, do not delay entering the business world, especially since the UAE has prepared the success ingredients for emerging entrepreneurs thrugh programs to support various youth projects

lah said he is in the process of opening a company specialized in developing and designing mobile applications, and soon he will launch ‘97 Eats’, a food delivery application. The idea of this app started two years ago with his friend Ibrahim Hassan. Abdullah’s father gave them support and advised them to continue with a private work parallel to Abdullah’s work in the Group. “Thank God, we are preparing soon to launch the application in Ras Al Khaimah and Fujairah, With diligence and hard work we will expand the application services to be at the level of the UAE,” Abdullah commented. Coronavirus taught us patience and empathy Concerning coronavirus, Abdullah said, “The most important lesson the COVID-19 pandemic has taught us is patience. Many of our projects have been halted and the income of other projects has become nil. It was a national and moral obligation on us to embrace nearly 2,000 workers in all the Group companies. We made a huge effort to cover the costs of our workers to meet their needs and avoid dismissing any one of them. We were able to overcome all these challenges thanks to the unlimited government support to ensure business continuity” The UAE has established a solid structure for the

youth to enter entrepreneurship As a young man, Abdullah advises young people to enter the business world. The first advice he would sayt that “if you have ambition, do not delay. Enter the business world strongly, because the UAE is one of the best countries to open any business in any field”. He said that our beloved country and our wise leaders have provided the utmost levels of support to young people and have created a solid structure for them to enter into entrepreneurship through programs to support various youth projects. Young people only have to determine where to start their project and how they can employ their creativity away from imitation, by choosing a field in which they can be creative and successful. They should benefit from the facilities, exemptions, services and incentives provided by the government. Young people must be passionate about their work and must believe in the inevitability of achieving success. At the same time, knowledge and experience in a field give greater chances of success, shorten the path to achieving goals, and save your time, effort and money. I love the company of elderly and I learn from them Abdullah stated, “I am a good reader, I love reading a lot, and I try to enjoy my time away from work, but with what benefits me and broadens my mind.” He continued, “Therefore, I like to sit with people older than me and accompany my father to elders’ gatherings. These assemblies provide education and knowledge for free, and teach us how to manage life affairs at different levels. Although I am twenty-one year old, but those who come across me say I am intellectually forty. Sitting with senior people and dignitaries gives you sobriety, wisdom and experience of life. Certainly, I spend some time with my young friends and in traveling, taking into consideration staying away from negative people who spread negative and destructive energy around.” “Through this interview, I want to say to my beloved country, our honorable rulers, and my father that I will spare no efforts in achieving success and making them feel proud,” Abdullah promised

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STEPS TO REBOOT YOUR BUSINESS TO ACHIEVE POSTPANDEMIC RECOVERY The worst is hopefully behind us as entrepreneurs and small business owners start to focus their energies on recovering from the impact of the COVID-19 restrictions. If you’re running a small business, there are no quick fixes for the blow the pandemic may have dealt to your cash reserves and cash flow. Also, there is no way to predict how soon the crisis will completely be over nor how it is likely to change your industry or the behaviour of your customers. However, here are four steps you can take to put your business on a more sustainable footing for the future – whatever it may hold. 1. ASSESS THE DAMAGE If business slowed down or you needed to close shop during the stricter movement restrictions, you are probably throwing yourself back into work in the hope of making up for lost time and money. However, it is also important to take some time out to evaluate the damage the crisis has had on your business. For example, here are a few things you need to take stock of: How did the crisis affect your supply chain? Can you still source the same goods and services from providers you used before the restrictions? What impact has the virus had on demand for your offerings? 36

Have you needed to downscale your workforce, and what will this mean for your future growth? What will your cash flow look like as expenses resume as you restart operations? What’s your situation vis-à-vis liquidity (credit and cash)? How quickly can you reactivate your sales and marketing strategy? Has your cost base increased? Did this affect profitability? Only when you understand how your business was impacted during the pandemic can you start to plan meaningfully for its recovery. If you were one of the few to benefit – for example, an e-commerce or food delivery business – you might want to evaluate how you can sustain the momentum achieved beyond the pandemic. 2. REFLECT ON YOUR PANDEMIC EXPERIENCE Once you’ve looked at the metrics highlighted above, the next step is to ask what they mean and what you can learn from them. A good option is to examine what worked well for your business and what did not. In addition, there is now an opportunity to evaluate how your business copes with adversity and identify any gaps in its resiliency. The pandemic may also have revealed a great deal about the readiness of your business to integrate today’s digital technologies to ensure greater competitive advan-

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habits and beliefs of several of your customers. For example, restaurants may find that customers still prefer takeaway and deliveries to eating out. Likewise, people The companies that will be able are showing an interest in self-drive holito survive will have a pivotal role days to avoid catching flights. in resuming economic growth In this volatile climate, businesses need and providing job opportunities to be more customer-centric than ever to in the coming years thrive, especially with many business customers and end users curbing their spending. Ensure you have a finger on the pulse of your customers to understand how their needs have changed and to anticipate what’s next. Some questions to consider: - Who are your customers today? Which customers did you retain, gain or lose? - Have you been meeting their expectations throughout the pandemic restrictions? Could you have managed expectations better? How have these expectations changed due to, for example, a greater reliance on digital channels or loss of income? How did their behaviour and consumption patterns change? Do you (and they) anticipate a return to earlier patterns of behaviour? tage. For more insight, you can benchmark yourself against How does your digital customer experience measure up? competitors and business partners to see how you fare. A non-exhaustive list of the questions that may be worth asking includes: In a crisis, could you pivot the business priorities as quickly as you wanted to? What would you do differently next time? How did your team respond, and what gaps did the pandemic reveal in their capabilities? If you transitioned to offer home delivery or virtual services, was this new method profitable for you? Is this a sustainable option during business as usual? Did this experience show that your business is ready for a digital world? Was a shift to remote working successful, and should it become permanent? Were you using technology and automation effectively? Were your suppliers and service providers reliable in these difficult times? How will you better avoid supply chain problems in a possible future crisis? Did you have the financial agility and business insights you needed to respond rapidly to the situation as it unfolded? How does your performance compare to your peers? 3. ASSESS WHAT HAS CHANGED FROM YOUR CUSTOMER’S PERSPECTIVE Whether you operate in a B2B or B2C landscape, you can be sure COVID-19 has transformed the traditional attitudes,

4. REVIEW YOUR STRATEGY AND OPERATIONS Looking at the areas highlighted above will help you identify the strengths and challenges of your business, and evaluate whether your current business plan is suitable for the newly digitalised world of work. You might want to finetune your business strategy and identify opportunities to streamline operations. Finally, it would be wise to plan for multiple scenarios since the progression from the COVID-19 crisis to recovery may not be linear. We could, for example, face a second and even a third wave of infection. It could take longer than anticipated for consumer spending to normalise. Planning for a range of outcomes will ensure you’re better prepared for the next crisis, whatever it is or whenever it strikes. CLOSING WORDS Each of us should be supporting our favourite small local businesses to help them recover during this time. The small businesses that get through this crisis will have a central role to play in restarting economic growth and driving job creation in the years to come. The more small businesses succeed, the greater the chance of survival for all businesses

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SIMON TOWNSEND ... NEW CEO OF ELLINGTON CAPITAL Ellington Capital, a specialised real estate asset and fund management firm delivering 360-degree investment opportunities, recently announced the appointment of international property investment expert Simon Townsend as its Chief Executive Officer. Simon Townsend will be responsible for driving the growth of Ellington Capital with a focus on identifying property development and investment opportunities in key markets in the region and internationally, including the UAE, Saudi Arabia, Oman and Qatar, and delivering consistent and strong returns to investors from across the world. With its game-changing approach to ‘build to rent’ independently,

SANDY EL HAYEK ... NEW GENERAL MANAGER AT TIME OUT MARKET DUBAI Time Out Market, the world’s first food and cultural Market rooted in editorial curation, announces Sandy El Hayek has joined the company as General Manager of Time Out Market Dubai in Souk Al Bahar, Sandy brings a wealth of experience and industry expertise to the position and will play a critical role in the successful launch and business growth of Time Out Market Dubai. She will manage 17 award winning chefs and restaurateurs, three bars and cultural and entertainment spaces spanning 43,000 sq ft, including a 3,000 sq ft wraparound terrace overlooking the Dubai Fountain and the Burj Khalifa

CAMPBELL GRAY ... NEW CEO FOR THE ATKINS MIDDLE EAST AND AFRICA Atkins, a member of the SNC-Lavalin Group, announced the appointment of Campbell Gray as Chief Executive Officer (CEO) for the Middle East and Africa, effective August 202. 1Campbell is an experienced executive in leading both businesses and projects. His strong ability to drive growth and deliver operational excellence, gained during his 24-year career with Faithful+Gould and Atkins in the Middle East & Africa, the UK and Asia Pacific, will position the business well for the future.

BUSINESS

NEW HIRIGN

RANYA SAADAWI ... NEW EXECUTIVE DIRECTOR AT PEARL INITIATIVE

KRISTOFFER NORDSTRÖM ... OPERATIONS MANAGE AT WALDORF ASTORIA, RAK Swedish hotelier Kristoffer Nordström has been appointed operations manager of Waldorf Astoria Ras Al Khaimah. Nordström will be responsible for ensuring effective operational management of the beachfront resort, as well as maximising revenue and ensuring guest satisfaction targets are exceeded. In his role, he will plan, direct, and coordinate the service delivery of all operational departments. This involves guaranteeing that costs are controlled, and results are analysed to highlight problem areas and required action. He boasts an extensive portfolio that includes roles in Switzerland, China, Seychelles, Rwanda, French Polynesia, and the UAE.

Ms. Saadawi will be spearheading the implementation of PI Vision 2025, the organisation’s updated strategy, working with key stakeholders to ensure the Pearl Initiative’s diverse programme offerings effectively address gaps in the corporate governance ecosystem across the Gulf region. Ranya Saadawi has extensive experience in the field of social entrepreneurship, impact investment and international development, with a particular focus on the Middle East & North Africa, she will work closely with the Pearl Initiative Board of Governors and the organisation’s growing community of partner companies to advance the mission of enhancing corporate governance in the Gulf region.

MRWAN GHARZEDDINE ... NEW SHAREIT’S SALES DIRECTOR FOR GCC OPERATIONS Mr. Gharzeddine joins SHAREit Group with a proven track record of meeting sales targets, he will oversee all sales operations across the GCC, utilizing his leadership skills and passion for digital advertising to lead development projects, secure new business opportunities, meet sales objectives, generate revenue, and further grow SHAREit Group’s regional profile. A Business Marketing graduate from California State University, USA, Mr. Gharzeddine joins SHAREit Group with almost two decades of sales experience. Since pursuing his sales career in 2004, he has applied an entrepreneurial mindset in each of his previous roles, effectively managing and mentoring diverse teams of sales managers and junior representatives.

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TAKE EACH DAY AS IT COMES, LEARN FROM EVERY OPPORTUNITY THAT ARISES, AND HELP PEOPLE WHERE YOU CAN

AS AN ACCOUNTANT... HOW TO SURVIVE YOUR FIRST YEAR

You’ve spent many years studying and the time has finally arrived. You’re about to go out into the world and embark on your first year as a professional accountant. While this is an exciting time, it can also be more than a little daunting. After all, university has equipped you with all the theory you need, but the real world can be unpredictable. Here are four things to remember that you may not have learned in accounting theory: PEOPLE SKILLS ARE IMPORTANT No doubt, accountant skills, like knowing everything there is to know about auditing, macro- and micro-economics, cloud computing, and cloud software, are important. However, people skills are just as significant in making the transition to a successful professional life. When you go for your first interview, start your new job, sit in the office every day or engage with your new colleagues remotely, you’ll need to use these skills to impress, communicate, and solve problems at work. Remember, your future manager or employer will be assessing your soft skills in the interview. They’ll be observing things like eye contact, how you hold yourself, your self-awareness, and the ability to engage in a professional conversation.

NEVER STOP LEARNING Get into the habit of learning all the time. Your degree is just the first step. Never stop asking questions and learning new skills. As a lifelong learner, you remain open to continuous personal development. For starters, this key skill will help you: • Complete onboarding programmes to learn about your new firm’s culture and procedures • Meet new colleagues • Familiarise yourself with new cloudbased accounting practices and business management software. ASK QUESTIONS You’re new at this and, therefore, are not expected to know everything. This is the perfect time for you to ask questions and find out all you need to know – about your colleagues, different work scenarios and professional experiences. What’s more, your boss and colleagues will expect you to ask questions. They were once in your position, so it’s a good way for you to earn their respect while also learning from – and avoiding their mistakes. See your performance reviews not as criticism of your work but as an opportunity to understand where you can improve. Keep a list of all the things you’re learning – and all the things you want to learn – so you can get progressively better at what you do. MANAGE YOUR TIME People often start their careers and work until they burn out. Make sure you’re prepared for what your new life throws at you: • Your first busy season will be challenging. Prepare for it and use your time wisely. • Make sure your family and loved ones understand this time of year is particularly stressful and that you need their support. Also explain that it’s only for a short period. • Don’t neglect your health. Nutrition and exercise must always be a priority, no matter how busy you get. • Schedule holidays and rest time so you can recover and spend quality time with the people you love.

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PERSONAL GROWTH

START WITH WHY By: Simon Sinek

READING IN HOW TO MANAGE CRISIS In a time of crises and dangers, or even before starting any practical step, you must master methods and adopt strategies that enable you to overcome any potential risks, crises or obstacles.Here are a number of books that will provide you with this knowledge:

Sinek starts with a fundamental question: Why are some people and organizations more innovative, more influential, and more profitable than others? Why do some command greater loyalty from customers and employees alike? Even among the successful, why are so few able to repeat their success over and over? People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers had little in common, but they all started with WHY. They realized that people won’t truly buy into a product, service, movement, or idea until they understand the WHY behind it. Start With Why, shows that the leaders who’ve had the greatest influence in the world all think, act, and communicate the same way -- and it’s the opposite of what everyone else does. Sinek calls this powerful idea The Golden Circle, and it provides a framework upon which organizations can be built, movements can be led, and people can be inspired. And it all starts with WHY.

RISK AND CRISIS MANAGEMENT

CRISIS COMMUNICATION STRATEGIES By: Amanda Coleman

By: Akira Ishikawa , Atsushi Tsujimoto

POST CORONA: FROM CRISIS TO OPPORTUNITY By: by Scott Galloway

Crisis Communication Strategies equips readers to deal with any kind of crisis - whether caused by internal error, customer action, natural disasters, terrorism or political upheaval. Supported by case studies and examples from responses to events including the 2011 Norway terror attacks, the 2018 British Airways data breach, the 2017 Pepsi advert and the 2005 Hurricane Katrina New Orleans floods, the book explores the role of leadership in a crisis and developing a crisis communication response that has people at the heart of it. Crisis Communication Strategies is the essential guide for PR and communication professionals to protecting your company and building true, longterm resilience.

Clear and comprehensive guide to the most common emergency situations of our day, giving succinct, practical advice on how best to avoid them if possible, how to minimize loss once they have occurred, and how best to recover sustainably. The 101 cases presented here cover both natural and man-made disasters, drawing on recent and current case histories to propose workable solutions for governments, corporations and ordinary people facing extraordinary times. I In particular, safety professionals, public management professionals, CEOs, CIOs, tertiary students and researchers will appreciate its pragmatic, vigilant approach to dealing with and recovering from natural and manmade disasters in the interest of longterm survival and sustainability.

Some businesses, like Amazon and video conference software maker Zoom, woke up to find themselves crushed under an avalanche of consumer demand. Others, like the restaurant, travel, hospitality and live entertainment industries, scrambled to not become instantly obsolete. In Post Corona, Galloway outlines the contours of both crisis and opportunity that lie ahead. While the powerful tech monopolies will thrive in the disruption other businesses, like higher education, will struggle to maintain a value proposition that no longer makes sense when we can’t stand shoulder to shoulder. Combining his signature humour and brash style with razor-sharp business insights, Galloway offers both warning and hope in equal measure.

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TOURISM

Half a billion Dirham

Investment plan to develop sustainable tourism projects in the Emirate

UPDATE DEVELOPMENT MARKETS

Ras Al Khaimah Tourism Development Authority (RAKTDA) announces over 20 sustainable tourism development initiatives across the Emirate marking an investment of half a billion dirhams in partnership with RAK Hospitality Holding and RAK Chamber of Commerce and Industry. Announced at the Arabian Travel Market 2021, The projects center on the Emirate’s new destination strategy that focuses on nature, leisure, adventure, accessibility and authenticity. Appealing to those seeking safe and expansive experiences in the new normal of travel, all projects are purpose built with sustainability standards and processes. Voted as the Gulf Tourism Capital for the second consecutive year and the first city worldwide to receive the ‘Safeguard Assurance’ label from Bureau Veritas, as well as the World Travel and Tourism Council’s Safe Travels stamp, Ras Al Khaimah has led the rebound of its tourism sector through ongoing innovation, safety and communication.

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THESE SUSTAINABLE PROJECTS AIM TO MEET THE ASPIRATIONS OF VISITORS LOOKING FOR SAFE AND HOLISTIC EXPERIENCES AMID THE NEW REALITY OF THE TRAVEL MARKET

UPCOMING PROJECTS IN RAS AL KHAIMAH The new initiatives include over 20 projects across the destination, including Jebel Jais, the UAE’s highest peak and an attraction that draws visitors from around the world. MOUNTAIN: • Earth Hotels Altitude, an eco-based pop-up hotel concept set to feature 15 fully fitted accommodation units, an activation center and swimming pool. • Saij, A Mantis Collection Mountain Lodge, comprising of 35 luxury lodges, will provide a pure mountain retreat that focuses on nature as well as mind, body and soul with guided treks, mindful pursuits and creative experiences. • Cloud7 Camp Jebel Jais – the ultimate glamping experience with 30 accommodation units built out of sustainable material. • The new Basecamp Jais will offer affordable accommodation for outdoor enthusiasts, thrill seekers and nature lovers as well as a range of activities such as yoga, Emirati live cooking and will serve as a leisure hub at the base of the rugged mountains. • Jais Yard - an F&B Village with food trailers, kiosks, retail containers, vintage truck restaurants, open air cinema and children’s play areas which will drive further visitation to Jebel Jais. • Jais Wings - adventure seekers can take off on a paragliding experience from the top of Jebel Jais with landing pads near Saraya Islands and Al Rams. It will be the region’s first dedicated paragliding site in the GCC. • Balloon Base with fixed hot air balloonsthat visitors can take in the infinite beauty of Jebel Jais. • Jais Swing - an Instagramableswing made of twin ropes that provide

amazing views and a unique content opportunity. • Wadi Track at Wadi Showka will feature a new bicycle pump track that will be the perfect spot for bike enthusiasts of all ages. • Building on its rich portfolio of internationally recognised outdoor events, Ras Al Khaimah is set to host the first ‘HIGHLANDER’ hiking experience in the GCC in November 2021. HIGHLANDER, the only certified international hiking association in the world, is widely renowned for its one-of-a-kind curated hiking experiences. DESERT & LAND: • Cloud7 Camp AlSawan – aluxury glamping experience with 60 unitswhere guests can learn what it takes to become an agriculturalist. • Flying Arch @Manar Mall will welcome the region’s first 130-metre aerial structure composed of over 1.5 million knots and around 300 km of twine that will cause the wind to create a choreography

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of constantly changing shape and color. • Luminaze at Manar Mall will also welcome an aesthetic and playful art installation based on a light maze, ideal for family and team activities. • Ras Al Khaimah is also strengthening its hospitality infrastructure through new hotels, such as the all-new Mövenpick Resort Al Marjan Island with 418 hotel keys and direct sea views. Guests can choose from large-sized family rooms, suites or 28 beachfront chalets with private pools and gardens. The upcoming Hampton by Hilton Al Marjan Island, comprising 515 rooms, will be the largest Hampton by Hilton globally and the first to offer an all-inclusive resort concept. Other new openings include Radisson Al Marjan Island with 388 rooms InterContinental Mina Al Arab with 351 rooms. BEACHFRONT: • A mega-beachfront development by Marjan with a marine district, inflatable aqua park, leisure trampoline, swimming pool, outdoor gym and extensive food and beverage offering. • Scallop Ranch at Al Hamra Marine will offer oyster/scallop diving, live cooking, family and kids’ experiences, and cultural activations. As a first of its kind attraction in the UAE, it will support and enhance understanding of the marine ecosystem with seagrass and sea cucumber species within the farm. SIGNIFICANT PROGRESS ON CURRENT PROJECTS In addition to announcing new projects, significant progress has been made in the development of several tourism attractions: • Sky Room, the UAE’s highest meeting room that can host up to 10 people. • Wingsuit Diving Platform - the first base jump platform in the UAE for professional base jumpers and home to Khalifa Al Ghafri, also known as the ‘UAE Batman’. • The Jais Sledder, a toboggan ride that runs a length of 1,840 meters, will be the region’s longest and is scheduled for completion in the third quarter of this year. • Jais Eco-Golf - a mini putt-putt 9-hole golf course with two to three hitting bays. • The world’s first Bear Grylls Explorers Camp that opened at Jebel Jais last year will provide additional accommodation following the launch of nine units in February 2021 bringing its total to 30. • The UAE’s highest restaurant, 1484 By Puro on Jebel Jais, will be enhanced and enlarged to create an even more memorable dining experience. • Work on several hiking health and safety improvements on Jebel Jais is also underway, including the installation of markers and reflectors, implementation of Hikers Safety & Registration gates, lower trail restoration, a new trail development, safety & information boards as well as a hiker’s shower room and shadedpicnic benches at vantage hiking spots. To find out more about Ras Al Khaimah’s upcoming attrac44

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tions and exciting developments, visit to see this extensive offering brought to life via an interactive map visitrasalkhaimah.com/ newprojects or check out its social platforms Instagram, YouTube and Facebook. The Authority is showcasing the Emirate’s wealth of attractions and experiences across its mountain, desert and beach terrains at its pavilion in Hall No. 3 (Middle East) stand ME3512. NEW FLIGHTS FROM RAK TO NEW DESTINATIONS New partnership with “Fly Egypt” Ras Al Khaimah International Airport announced the start of commercial aviation flights to transport passengers between the emirate of Ras Al Khaimah and the most populous country in the Middle East, with the arrival of the first flights to “Fly Egypt”, in a step that reflects the rapid growth in the volume of operations of Ras Al Khaimah International Airport and the development in His expansion strategy. Fly to Nine Russian cities, including Moscow These services now connect Ras Al Khaimah to nine destinations in the world’s largest country. Rossiya Airlines offers weekly flights to and from major cities in Russia, including Moscow and its second largest city St. Petersburg. The other cities include Kazan, Samara, Yekaterinburg, Nizhny Novgorod, Perm, Ufa and Rostov-on-Dov. Direct flights between Ras Al Khaimah and Kyiv The Ukrainian airline will operate twice weekly flights, on Mondays and Thursdays, from Ukraine’s Boryspil International Airport in Kyiv to Ras Al Khaimah International Airport, with the frequency of these flights expected to subsequently increase. UIA will become the first airline from Ukraine to fly into Ras Al Khaimah. Travellers will also receive complimentary return PCR testing – a service that Ras Al Khaimah is extending to all international visitors.

RAS AL KHAIMAH ADDS A NEW LANDMARK Ras Al Khaimah has achieved another architectural landmark that will add to its touristic attractions: The longest suspended bridge that connects the two buildings of the new Mövenpick Resort Al Marjan Island. Mövenpick Resort Al Marjan Island, the hospitality project by RAK AMI Hotel, a company focused on developing and managing hotels, is located centrally in Al Marjan Island, the flagship lifestyle and leisure destination developed by Marjan, the master-developer of freehold property in RAK The suspended bridge is one of the stand-out features of the hotel that has a development value of AED 543 million. At 36 metres long, the bridge will feature eight hotel rooms that are set to be widely sought-after. The bridge is supported by four main trusses, each with a weight of 55 tonnes. Each truss is 4 metres high and installed at a height of 44.2 metres.

AND RAKTDA LAUNCHES NEW TOURISM BRAND IDENTITY Ras Al Khaimah Tourism Development Authority (RAKTDA) has unveiled a new vision and destination brand today at the Arabian Travel Market (ATM) 2021. At the heart of this is the Emirate’s identity as a nature based travel destination, offering fulfilling moments inspired by nature’s wonders. This new identity fits seamlessly with an Emirate famed for its mountain peaks, sprawling deserts and pristine beaches and elevates it to even greater heights. Inspired by Ras Al Khaimah’s spectacular topography, its unique panorama and its cooler summer climate, this identity underscores awe-inspiring moments in the UAE’s northernmost Emirate – a destination with an unrivalled appeal for those seeking ‘a sense of place’ and wanting to truly ‘live’ the destination’ RAK BUSINESS

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UNILEVER ... SAYS NO TO ‘NORMAL’ WITH NEW POSITIVE BEAUTY VISION Unilever Company announced it will eliminate the word ‘normal’ from all of our beauty and personal care brands’ packaging and advertising including Dove, Lifebuoy, Axe and Sunsilk, as part of the launch of our new Positive Beauty vision and strategy, which is equitable and inclusive, as well as sustainable for the planet. It comes as global research into people’s experiences of the beauty industry reveals that using ‘normal’ to describe hair or skin makes most people feel excluded. In addition to removing the word ‘normal’, Unilever will not digitally alter a person’s body shape, size, proportion or skin colour in its brand advertising, and will increase the number of advertisements portraying people from diverse groups who are under-represented.

HEBA MAGDI THE NEW BRAND AMBASSADOR FOR DABUR AMLA Infusing a youthful and contemporary appeal to its well-known haircare brand, Dabur International recently announced Heba Magdi as the new face of Dabur Amla Hair Oil. Dabur Amla Hair Oil extracts the unique qualities of Indian Gooseberry (Amla) in the most sophisticated manner to retain its hair health-enhancing qualities. Dabur International confirmed that the strategic move has been aligned to get younger consumers drawn towards the goodness and benefits of Amla.

BRIDGESTONE... MANUFACTURER OF THE YEAR Bridgestone has been named summer tyre ‘Manufacturer of the Year’ for 2021 by renowned German publication AutoBild after its tyres were recognised for their driving dynamics and more balanced performances in this year’s round of summer tyre tests. Bridgestone’s newly released, flagship high performance tyre, the Bridgestone Potenza Sport, was named winner of AutoBild sportscars’ 2021 sports tyre test.The tyre received top ratings on dry roads, including shortest braking distance and a top two placing for dry handling, and was named best of wet roads – deemed to have the shortest braking distance, best handling, best in a wet circle and strong aquaplaning performance. Bridgestone Potenza Sport was also given a top rating for ride comfort by the revered magazine. 46

BUSINESS

MARKETS

FIVE JUMEIRAH VILLAGE DUBAI RECOGNIZED WITH TWO PRESTIGIOUS ACCOLADES FIVE Holdings, a Dubai-based real estate group, and Atkins, a member of the SNC-Lavalin Group, celebrated big wins at The Council on Tall Buildings and Urban Habitat (CTBUH) Awards 2021 with two prestigious accolades for the FIVE Jumeirah Village Dubai, United Arab Emirates. The award-winning hospitality and residential project was recognized as Best Tall Building Middle East & Africa, audience vote, and received CTBUH’s Best Tall Building 200-299 meters Award of Excellence. FIVE Jumeirah Village uniquely supports environmental sustainability by creating and utilizing 7X of the lush green spaces that would have been replaced by its construction – thus creating a unique natural haven for visitors to enjoy the vibe at FIVE. During the Covid-19 crisis

HITCHES & GLITCHES NOW SERVES CUSTOMERS THROUGH AMAZON HOME SERVICES Dubai-based smart and green maintenance specialist Hitches & Glitches (H&G), part of the Farnek Group, has signed an agreement with Amazon.ae to offer a range of home maintenance and cleaning services, as well as installing smart home devices, via Amazon Home Services. Launched earlier last year in the UAE, Amazon Home Services is a marketplace for on-demand professional services. In just a few clicks, customers can browse, purchase and schedule over 70 professional services directly on Amazon.ae.

AL-FUTTAIM MALLS ... LAUNCHES NEW THIRD PARTY TO ELEVATE RETAIL LANDSCAPE ACROSS MENA Al-Futtaim Malls today announced the launch of PLEX Management Services company, to assist landlords and transform the retail landscape across the MENA region. PLEX will focus on supporting businesses in the complete management of retail destinations in countries including UAE, Egypt, Qatar, Saudi Arabia and Morocco with the vision to expand across the GCC and Asia. Al-Futtaim Malls already has a proven track record of creating both sustainable revenue growth and value enhancement for investors, while delivering exceptional experiences and exciting shopping environments for customers. Leveraging on the expertise of its parent company, PLEX Management Services will offer a full array of services including asset management and development, leasing, and brand experience expertise to shopping malls and retail organizations in the MENA region and beyond. Implementing global best practice and deploying Al-Futtaim Mall’s deep understanding of mall management and retail dynamics, PLEX promises to deliver continuous growth and long-term value for its partners.Al-Futtaim has a directly managed portfolio including over 9 million sq ft of retail space across four Malls in the region and two under development. RAK BUSINESS

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