Business Insight - November 2014

In partnership with

Insurance Insurance: What Private Medical w You Need to Kno

ISSUE

8

People

You Need to Tell The Legal Basics Your Employees

spitality Travel & Ho enues Festive Party V

Telecommunication partner

Supported by

EMBASSY OF THE RUSSIAN FEDERATION UAE

Exclusive Interview: H.E. Alexander Efimov, Ambassador of the Russian Federation to the United Arab Emirates

How to Write a Business Plan Exclusive Russian Business Network

Exclusive Interview with

H.E. Helal Saeed Almarri, Director General, DTCM licensed by creative city and national media council

SHERATON SUZHOU

MANDARIN MACAU

KEMPINSKI RIYADH

ROTANA RAK

VICEROY DUBAI

GRAND HYATT BEIJING

NAKURA BANGKOK

INTERCONTINENTAL ABU DHABI

INTERCONTINENTAL KAMPALA

OBEROI MUMBAI

FROM THE EDITOR an you believe November is here already?! The festive season is well and truly in full swing. People are looking to taking their December holiday and planning time with friends and loved ones. This need not just be for your personal life though. Celebrating the holiday season is a great way to encourage a team feeling and culture, and therefore we scoured Dubai for the best festive restaurants that people are booking into to as a “thank you” for their staff. Turn to page 62 to find out more.

Thinking of fun shouldn’t drown out what you actually want to achieve; driving your business forward. But what would you do in times of a fire? Could your business keep going or would it kill it off? These are questions that all entrepreneurs should ask themselves. The Business Insight team has scoured the globe for the best advice that SMEs in Dubai can use today and have put it all into our article on page 14, so you can think of what you would do in any catastrophic scenario.

We are often shocked in the office when we hear about businesses that don’t have any sort of business plan.

Therefore we have an Angle Investor prospective on what they expect to see in our article ‘How to Write A Business Plan’ on page 26.

Don’t forget to include the cost of Private Medical Insurance in your business plan though. From next year, PMI will become mandatory for small businesses. Whilst admittedly, the laws on this are being rolled out, on page 56, we provide you with ‘A Guide to PMI’ to help you on your way.

As you may have noticed from our cover, we are now Supported by the Consulate General of the Russian Federation in Dubai and Northern Emirates so you can now find us at all Russian events as well as in the Embassy and the Consulate. If you turn to page 72, you will see our Exclusive Russian Business Network with our interviews with H.E. Alexander Efimov and the legendary Ice Hockey player Vladimir Petrov.

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Enjoy!

FROM THE PUBLISHER elcome to another issue of Business Insight magazine. I would just like to again thank all of our key supporters and contributors for making this a very successful and informative issue. This month we are proud to announce FlipFlop Media are officially sponsoring the Russian Ice hockey league “The Mighty Camels”, and Business Insight will be reporting on relevant news and information relevant to the business world, as we are now Supported by the Consulate General of the Russian Federation in Dubai & Northern Emirates.

I would also like to thank DMCC for the latest news and information, which will hopefully keep their members up to date with the latest changes and developments the freezone is facing. As we prepare for the festive season I welcome all contributors from the business world, to feel free to be a part of the evolutionary process of helping SMEs to sustain themselves, or to help them fulfill their dreams of becoming a larger enterprise.

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Thank you

Liam Williams Publisher

Publisher Liam Williams liam@flipflopmedia.ae Editorial Editor Tanya Selley tanya@flipflopmedia.ae +971 4 369 9063 Staff Writer Rachel Stracey info@flipflopmedia.ae Marketing Head of Marketing Harry Norman harry@flipflopmedia.ae +971 4 369 9062 Design design@flipflopmedia.ae +971 4 369 9063 circulation & Production Circulation and Distribution Manager Antonio de Marco circulationdm@flipflopmedia.ae +971 4 369 9063 Database and Circulation Manager Aaliya Khan databaseandcm@flipflopmedia.ae +971 4 369 9063 Production Manager Juan Vasquez productionmanager@flipflopmedia.ae +971 4 369 9063 Digital webmaster@flipflopmedia.ae Published by

Registered at Fujairah Free Zone PO Box 27634 Dubai, UAE Tel: +971 4 369 9063 Fax: +971 4 369 8989 www.flipflopmedia.ae printed by CMS Printing Press LLC © Copyright 2014 FlipFlop Media All rights reserved While the publisher have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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

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12 NOVEMBER 2014

Contents Foresight Page 12 - How to Increase Your Sales Page 14 – Alternative Energy: Energy Market Opportunities in the Region Page 18 – Catastrophe Planning – A How to

Success Series

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Page 22 - Interview with H.E. Helal Saeed Almarri, Director General of DTCM

Money Page 28 – To Compliment Not Compete – An Islamic Finance Overview Page 30 – How to write a Business Plan

People Page 34 – Key Skills for the 21st Century Manager Page 36 – The Legal Basics All Employees Should Know

34 54

Legal Page 40 – Visa and Immigration

Marketing & Advertising Page 44 – Money Marketing We are Missing Out On Page 46 – Building a Brand

DMCC Page 50 - DMCC Sponsored Section

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Technology Page 54 – Linking into Business

Telecoms Page 56 – Telecoms for your New Office

Insurance Page 58 – Your Guide to PMI

Property Page 60 – How to Choose an Office

Travel & Hospital Page 62 – Festive Party Venues

Business Incubator Page 64 – The X-Factor Page 66 – Become a Better Communicator Page 68 – What to do to Stop Burnout

Russian Business Network Page 72 – Exclusive Interview: H.E. Alexander Efimov Page 76 – Exclusive Interview: Vladimir Petrov

Regulars Page 10 – Expert Panel Page 20 – The Execs Wish List Page 80 – The Business Directory Page 82 - Competition

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EXPERT PANEL Ravi Bhusari Managing Director & Co-Founder DUPLAYS

John Brash Founder & Chief Executive Brash Brands

Caroline Jones Director Infopod

Ludmila Yamalova Managing Partner HPL Yamalova & Plewka JLT

Yogesh Mehta Managing Director Petrochem

Louis Lebbos Founding Partner Astro Labs

Muhammed Mekki Founding Partner Astro Labs

Jonathan Hall Founder and Managing Director Mulverhill Associates

Dr. Tommy Weir Founder Emerging Markets Leadership Center

Zaid Maleh CEO DACH Advisory

Jeffrey Rhodes CEO BTC (part of New Egypt Gold) & Founder & Managing Consultant Rhodes Precious Metals Consultancy DMCC

Ramsey B. Jurdi President American Business Council of Dubai & the Northern / International Partner Chadbourne & Parke LLC

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foresight

How to Increase Your Sales Sales are key to the life of any business; without sales you have no business. There are proven clear theories for sales, and whilst many of us think we know all about it evidence shows that refreshing sales skills is an extremely valuable exercise, that not only eliminates bad habits, but also creates motivation, energy, and reinforces key steps that you may have forgotten about! Here we look at the sales process, specifically closing more sales

Failing to Prepare is Preparing to Fail This cliché may sound obvious, but how many times have you run out of time ahead of a meeting and gone in cold, without understanding your client’s business?

This happens to us all, but can easily be avoided if you just make time before your meeting to research your prospective client’s business to fully understand their industry, and what their competitors are doing. Also, do a little web research on the person you’re meeting, that way you can start a more personal conversation with them, which is a great way to start building rapport.

Take to the meeting a printed document with their company logo on it and your research attached.

This will not only remind you of why you are there, but is also a great talking point with your prospect that illustrates how serious you are about the meeting.

Have a simple, yet effective USP If you are bringing a new product/service to the market you must have a unique angle to it. Or,

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if your product/service has been on the market for a while, then review this against your competitors and identify the key advantages. Either way you’ll need to train your staff in these USPs. If not, this may be why your sales are failing.

Reveal a genuine interest in your prospect The best sales are those where your customer is so loyal to you they wouldn’t look at any other provider.

The only way to achieve this is by building a great relationship with them, making your first meeting and impression vital. You must establish: ll What makes them tick ll What they are looking for ll What have they got ll Why they are passionate about their work ll What they value about business, family, life and friendship ll Who they are as “regular” people, as opposed to their executive titles ll What their dreams and goals are

If you appear genuinely interested in your prospects, they will automatically align their opinion with you. Think about it, you prefer working with people who are genuinely concerned about you and your family, don’t you? You feel engaged and connected with these people. Do not confuse this as being manipulative; it’s a legitimate interest in others that could eventually lead to real friendship anyway.

But the question is, just how can you refresh your sales technique when in front of a prospect?!

Sales tie-downs Harvey Mackay, author of The Mackay MBA of Selling in the Real World, suggests ending all questions with wouldn’t you? doesn’t it? and, shouldn’t you? You may have noticed, I used this above. It works well, doesn’t it? What we mean by this is; ll If you know two little words that could improve your sales, you’d use them wouldn’t you? ll When you see your customer has some reservations, it makes sense to get the issues out in the open, doesn’t it? ll And after the ink is dry on the deal you should make every effort to make sure your customer is satisfied, shouldn’t you?

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If you knew two little words that could improve your sales, you’d use them wouldn’t you?

So what is it with all the questions?

These illustrate a technique called sales tie-downs. What this technique achieves is you get your customers to agree with you in small, but very important steps.

The psychology of this is that this creates positive reinforcement, confirming that everything that the salesperson says is believable and right, making it second nature for the prospect to agree at the end of the meeting/call to the sale.

When I used this method, I actually had my prospect tell me that she didn’t realise she had a need to consider alternative options until after she’d spoken to me. Until that point she would have guaranteed that she’d been getting the best service from her current provider.

So surely this is worth a try, isn’t it?

Mackay states, “Sales tie-downs are short questions you add to statements throughout your presentation to get your prospective customer to start saying yes long before you go for the close. You want to engage your customer and get them used to saying yes.”

Don’t be afraid of soliciting just yes or no answers initially. These questions can be: ll Aren’t they? ll Can’t you? ll Isn’t it? ll Shouldn’t it? ll Won’t they?

As I admitted before this process feels rather uncomfortable so practice to make it perfect. This is important as

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your questions must sound natural before you are able to use them to secure business. You wouldn’t take advice from someone who doesn’t sound convincing, would you?

Another benefit of tie-downs are that they keep you in control. You can ensure that customers fully understand what you are saying, and you know when it is OK for you to continue.

Tonality The tone of your voice is also vital.

You must ensure that the questions do not sound threatening and argumentative, so use them in roleplaying exercises. Develop a flow that ensures you ask enough, but not too many questions, therefore not appearing ‘odd’ to the prospect.

The push, pull technique This is very effective, especially when submitting a pitch in writing. The best way to describe this is by thinking of a fly-fisherman; a man casting his fishing-rod, getting a hook and pulling it in, and allowing it to slack a little, and repeating this process a couple of times until you pull it in.

Basically, this technique would

involve you asking the relevant questions to determine the facts surrounding your product/ service and their current product/service; 1. Push: Big fat claim: Tell the prospect about your services/product and what it could do for them. For instance, “Our service is……. and we can provide customer feedback from customers to confirm this.”

2. Pull: Make a statement and finish with a tie-down: take it back a little by saying something along the lines of, “I’m sure you have the best service/product already, but surely you want to confirm that you have the best already don’t you?”

3. Repeat this process three times, but with slightly different points and questions.

4. Close the sale Closing Believe it or not, yes closing is vital but you don’t need a big close. Avoid saving all of the big influencers to the end, as this won’t enable your prospect to trust or engage with you. By keeping the customer actively engaged throughout the process you’ll garner their trust and build a solid relationship; which is ultimately what you want from the process as relationships are more difficult to break than just the sales.

Provide excellent after-sales service It is equally important that you provide support to your customers, as repeat customers are highly profitable and provide quality referrals; but you know this, don’t you?

Now let me ask you again, if you knew that two little words, a little preparation, and excellent service could improve your sales, you’d use them, wouldn’t you…? n

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alternative energy n the UAE, there is a credible need for alternative energy sources.

Currently the UAE relies entirely on electricity to provide our water via the process of desalination, and with electricity demand set to increase by 9% year on year, it is expected to require 40 GWe of capacity by 2020.

On top of this, and having ratified the Kyoto Protocol with the UN on Climate Change in 2005, the UAE has long been seeking international energy partnerships and the most forward thinking technologies, in order to reach their goal of having 7% of all energy being renewable energy by 2020.

This drive has meant that the UAE Minister of Economy recently indicated that the volume of potential investment in the market of alternative energy projects by the private sector will be approximately US$100bn until 2020, rising internationally

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Much like it’s growth and recent history, the UAE is rapidly changing to move away from it’s reliance on oil and gas, to other sectors such as finance, services, tourism, and also renewable energies.

The government is increasing their focus in this area and looking at low carbon and clean energy developments; all with the assistance of the oil and gas producers. So the question is, what are the alternative energy market opportunities for business in the region?

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to US $1.5trillion. We are not the only ones taking strides in this area.

The UK has also invested heavily into this area as well, with alternative energies such as wind and water. Globally, it has been deemed appropriate that to obtain sustainable growth in the long term, investment needs to be channeled towards energyefficiency measures, such as clean fuel and renewable energy supplies, improving water efficiency, investing in new water desalination capacity and buying or leasing agricultural land abroad.

Closer to home though, Gulf governments have unveiled major plans to harness the solar power capabilities. Whilst they may be some of the largest gas and oil producers on the planet, governments in all countries acknowledge that these are finite.

They also acknowledge that their domestic demands are ever increasing and therefore alternative sources of energy are required.

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The UAE has committed themselves to a 7% renewable energy target by 2020

reserves. World dependency on GCC energy exports will grow by 2020.”

With this in mind, why should the GCC be concerned about these findings?

“Because conservation makes financial sense.

Demand for electricity, which is typically generated by domestic gas, is already outstripping supply in the GCC. Fast population growth threatens to create acute shortages unless something is done. Moreover, using fossil fuels to generate electricity means having less available for export, which in turn means high opportunity costs.”

It is these concerns that are driving the renewable energy market in this region.

Zawya recently reported that the Gulf solar energy industry is expected to witness between 60GW and 70GW of installations over the next 10 years, “Despite challenges, solar power is an appropriate option to cater to the peak demand issue that the GCC faces, one that is currently being addressed by diesel generators, or gensets,” said Abhay Bhargava, head of the Energy and Power Systems practice, Frost & Sullivan.

Qatar has announced a US$1.2 billion polysilicon plant, which will contribute to the setup of a localised value chain for producing solar panels. It is expected that this plant will eventually produce 45,000 metric tons per year. It doesn’t stop there for Qatar as they have also announced plans to install 1.8GW of solar power across the country.

Saudi however have other reasons for looking to renewable energies; how to produce oil and gas, without using oil and gas. Muhammad Abualsaud, vice president of oilfield services and renewable energy sectors at Khalid Al Turki & Sons said, “The country has to use oil to generate electricity and there is a huge opportunity lost there.

Hence, there is a case for the need to look at solar.”

In light of this conundrum, they have looked to the King Abdullah City for Atomic and Renewable Energy, or KACARE, which was established in April 2010. They plan to produce 54GW from renewable energy sources by 2032, with solar energy accounting for 41GW, with investments of US$109 billion.

On top of all of this, the Kingdom has also announced a 3.5MW power plant by Aramco, which already uses solar power to fend off pipeline corrosion, whilst a whole village and school are already using solar power, not mentioning the 100MW Solar project, Makkah and the 600MW 1 IPP project, Dibba…

A report titled, “The GCC in 2020: Resources for the future”, a research paper by the Economist Intelligence Unit, states that the GCC member countries are expected to post robust growth over the next decade both in terms of population and GDP. By 2020, the GCC population is forecast to reach 53.5 million, a 30% increase over the level in 2000.

Over the same period, the region’s real GDP is expected to grow by 56%. Nominal GDP, which was US$341.6 billion in 2000, is forecast to soar to over US$2 trillion in 2020.

This report stresses the risk, “that unmanaged growth will bring negative sideeffects such as power shortages and soaring prices, in particular for food. Some GCC states are already experiencing sporadic shortages of electricity and gas. The GCC countries, meanwhile, control 40% of the world’s known oil reserves and 23% of proven natural gas

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Gulf solar energy industry is expected to witness between 60GW and 70GW of installations over the next 10 years” Zawya

So what is the UAE doing?

Actually, a lot. The UAE has committed themselves to a 7% renewable energy target by 2020 as they wish to become less dependent on oil. Locally, DEWA are constructing the first (and the worlds largest) solar park at Mohammad Bin Rashid Al Maktoum Solar Park. It is expected that this park will produce 1,000 megawatts of electricity using solar cells. This 13 megawatt development is anticipated to produce 22 million kilowatt hours of electricity per year; the equivalent of powering 500 households for a year.

Masdar is fundamental in driving sustainable energy forward. Established in April 2006 by the Abu Dhabi Future Energy Company (ADFEC), to advance the development, deployment and business opportunities of renewable energies. They aim to

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develop low carbon technologies and clean energy on a global level, whilst developing commercially viable solutions that are also sustainable over the longer term.

Abu Dhabi is taking this one step further with the building of Masdar City. Not only will this be a futuristic city, it is planned to be as ‘green’ as possible, with the smallest carbon footprint when compared to other cities, with building work to complete so that one building will provide shade for another to amount of energy that is required to cool them via AC. All waste and trash will be processed in line with other countries (recycling, composting etc) and all of the city’s power will be generated from the sun.

Some mean feat considering it is expected to house 40,000 people!

Masdar has protected pathways (enabling people to shelter from the sun when walking) and a

large pedestrian zone with a wind tunnel in the centre, which drives cooler air downwards to cool the area, whilst wastewater is 100% recycled for landscaping. This in itself has produced a 60% reduction in water usage per square meter. This is not all, only electric cars are allowed to enter the city.

This may sound rather Sci-fi and unpractical, I mean, how will you access the city? Well for those of us who will still retain our gas-guzzlers, there will be a high-speed electric train that will connect Masdar to Abu Dhabi Airport as well as there being ‘green’ public transport provided in the form of electric busses and the metro, Masdar City is also collaborating with Mitsubishi Heavy Industries to test a point-to-point transport solution. These transport solutions are vital as as it is anticipated that 40-50,000 jobs will be created, by the 1,500 companies that are thought to take up residence in this city… 100 of these companies coming from Switzerland alone.

Masdar University plans to be a global leader in the field of renewable energy, where currently 180 students are enrolled. The university lives it’s values and generates 30% of it’s energy requirements from solar energy and the building was constructed using a cement that preserves coolness.

International Renewable Energy Agency (IRENA) Such are the strides that the UAE is taking in this area, the ripples globally are taking affect and the world is noticing. IRENA, the UN Agency, chose the UAE as it’s host after being offered support of loans totaling US$50m to support alternative energy projects in developing countries, who ordinarily are unable to provide this funding themselves.

With the drive to be greener, and a clear path to solar, the question is who will be successful in their goals and which country in the GCC will be the greenest? Regardless of the answer, the abundance of business opportunities in this arena is clear, and everyone will be a winner. n

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In your emergency planning remember, that following a major disaster such as an earthquake, you may need to be self-reliant for 72 hours or longer” EPICC

Catastrophe Planning With all that is happening in the world, it wouldn’t be a surprise for you to be concerned on a personal level, but what about business? How would your business cope in the aftermath of fire? here comes a time in all business that circumstances will be beyond your control and change the way you do things. These can be anything from your injuring yourself in a football match and not being able to go to the office, to a ‘force of nature’ event such as a tsunami or a fire sweeping through your office block.

These things can impede business, but you can ensure that business continues as quickly as possible through careful and meticulous planning.

ASOS, the global online retailer found this out to their cost. On Saturday June 22 this year, a fire tore through their warehouse in the UK, burning 20% of their stock, which accounted for over US$350m in losses. They had to shut their global websites for 24 hours.

Bearing in mind that this particular warehouse housed 70% of their global (cost price) US$216 million stock, you can understand the damage that could have happened. This also meant that they had to post a 4% profit warning, which affected their share price.

That said, ASOS were praised for the fact that despite such a horrendous thing happening, they had such strong plans

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in place that they were able to restore working conditions. They were able to release a statement on the Monday June 24 saying, “None of the technology, automation or structure of the building has been affected by the fire. The cleanup process commenced on Saturday morning and progressed quickly.

Consequently at 2am this morning we recommenced taking orders. We are fully insured for loss of stock and business interruption.”

Shutting the website for just 24 hours as opposed to several days (as was feared), illustrates how effective their planning was. Within 48 hours the business was up and running, a plan implemented to get the business back on track recovering loses (by the implementation of a sale of up to 50% off no less), and statements released to the shareholders. This better than expected news meant that the share price was up 2%, by close of business on Monday 24, the first day of trading.

Why Plan?

Catastrophe/Disaster planning will ensure you are prepared for a variety of hazards including fire, power outages

and communication failures. It fulfills your moral responsibility to protect employees, the community and the environment, as well as ensuring that your company can recover from financial losses, regulatory fines, loss of market share, damages to equipment and products, or business interruptions. By having procedures in place, you have proven to insurers that your exposure to liability is reduced in the event of an incident, and could reduce your insurance premiums.

How to Plan To build a comprehensive plan you must engage all departments (HR, Facilities, IT etc), to review their areas of business. To assist, have your staff identify and eliminate hazards which could kill or injure people, destroy and damage property or cause an interruption to business.

Think of various events; fire, theft, illness etc. and what the likely outcome of these events would be including; what do you need to do at the time of the event to reduce the impact?

What steps you need to take before you are able to successfully implement this plan?

Ultimately, you want to create a system that provides a fast effective response to a disaster situation. The Emergency Prepardness for Industry & Commerce Council (EPICC) in Canada recommends: ll Establishment of a “chain of command” and delegation of authority ll Coordination of requests for assistance and allocation of company resources ll Establish priorities and resolution of conflicting demands for support ll Coordination, direction and distribution of emergency public and employee information ll Collection, evaluation and distribution of damage assessments and other essential information ll Coordination and maintenance of communication with appropriate governmental agencies and news media They state that, “In your emergency planning remember, that following a major disaster such as an earthquake, you may need to be selfreliant for 72 hours or longer. Government emergency services such as fire, police and ambulance resources will be fully committed and immediate assistance will not be available in the aftermath of a disaster. Roads, bridges, transit systems and essential lifelines could be severely disrupted. Senior staff may be unavailable, injured, at home or in transit.

Continuity of management means planning for disruption of normal lines of authority.”

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I have lists of back up suppliers and vendors in case my main one is unable to work also and staff with laptops are able to work from home in the short term” Caroline Jones, Director InfoPod

Contingency Planning “If your business has been affected, who is to say that other businesses haven’t also?” asks Caroline Jones, Director of InfoPod when questioned on her processes.

“I have lists of back up suppliers and vendors in case my main one is unable to work also and staff with laptops are able to work from home in the short term. I also have 24 hour emergency numbers for my employees, so I can keep employees.”

The EPICC suggest asking yourself some questions as a way to getting started: ll Do you have an emergency plan of any type? ll How vulnerable is your business to damage, injury and loss? ll What can be done to reduce risks to employees and their families? ll What will you and your staff do when the disaster strikes? ll How soon will you be able to resume business following an earthquake?

Once you have formulated the answers, you understand your weaknesses and can formulate your plan around this. Don’t forget simple things like how to evacuate/ train your staff to quickly evacuate a burning building, and ensure that no one is left behind for example. Have a separate fire marshal and first aider and determine how best you can get your staff back to work.

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Business Continuation Throughout your plan assess your company’s current capabilities to enable a full recovery from a catastrophe. There is a lot of work here, it will take a lot of time and costs can be issue, so what can you do as an interim measure?

Review Insurance Policies All business owners should have ‘Contents’ and ‘Liability’ Insurance at the least. If you own the property, then Buildings Insurance is vital.

Keeping regular inventory of the items you have on site ensures that you have full coverage to replace destroyed or damaged equipment should the worst happen. Globally there is also Business Interruption insurance which could cover lost income in event of a disaster if your business has to temporarily close it’s doors.

Back It Up Ensure that all office computers are backed up each time an employee logs on. This way you will only ever have “lost” one working day of computer records. Hold this information remotely; If you back up in more than one facility, you stand a far better chance of being able to resume work as normal as you will have the information readily available. Consider outsourcing this; Burhani offer backup sites in both Dubai and Abu Dhabi. The British Government recommends that this information is retained about 50 miles away or subscribe to an online data backup service provider.

Yes, the cost in both time and finances is great, but ultimately, can you afford to not make any provision for disaster recovery…? n

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execs wish list

We are all in business to earn money so in our wish list, we show you how to spend it with style...

Carolina Herrera

POA

Orient Express Prestige Pen, Tanagra

AED 11,785

Carolina Herrera

POA

Lalique Manifesto Vase Tanagra

AED 73, 330

Carolina Herrera

POA

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Carolina Herrera

POA

Carolina Herrera

POA

Tumi, Tanagra

AED 4,800

Carolina Herrera

POA

Paule Ka, Available in MOE

AED 3,490

Carolina Herrera

POA

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November 2014 | 21

success

Interview with

H.E. Helal SaEed Almarri,

Director General of DTCM

Business Insight Magazine jumped at the chance when offered to interview H.E. Helal Almarri. Not only is he is the Director General of the Dubai Department of Tourism and Commerce Marketing, but he is also the man spear heading Dubai 2020. Who wouldn’t want to find out more?

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success

or a new country and young city, Dubai has made waves on the global stage like no other. What makes Dubai such a strong proposition when there are alternatives including the likes of Hong Kong and Singapore?

Under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, tourism has been a key pillar of the government’s economic diversification strategy for more than two decades.

Through a focus on developing a worldclass aviation infrastructure, including Dubai International airport and the new Dubai World Central, an open-skies policy, and of course the growth of our two home airlines – Emirates and flydubai – our government has significantly contributed to shifting the centre of the global aviation map to our region, leveraging the strategic geographic location the emirate benefits from which places us within four hours flight time of one third of the world’s population and eight hours of two-thirds. Concurrently, the government focused on developing a broad destination offering which harnessed the emirate’s natural assets of year-round sunshine, the beaches and waters of the Arabian Gulf, and the emirate’s desert, our heritage and cultural offering, and the development of a large number of world-class attractions and hotels.

This strategy led to sustained growth in tourism numbers and brought us to 2012, when we welcomed 10 million visitors for the first time

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and were the world’s 8th most visited city by international visitors. It was at this point that the Tourism Vision for 2020 was announced, with the headline targets being to double the number of annual visitors from 10 million in 2012 to more than 20 million per year by the end of the decade.

The Vision also states Dubai’s aim – inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai – to become the world’s leading family tourism and events destination. These are ambitious but achievable goals and have provided a clear focus for both governmental and private sectors.

We will achieve these goals by continuing to attract tourists from traditionally strong source markets, like the GCC and Europe, by growing our visitor numbers from markets with high potential growth such as China and India, and by targeting growth from emerging markets.

DTCM is working with our partners across government and the private sector to coordinate and maximise our efforts to ensure continual enhancements are made to Dubai’s tourism offer, and to pioneer experiences which redefine travellers’ expectations; providing them with better services throughout their tourist journey and resulting in them wanting to visit and revisit Dubai.

We have also been looking at how we enhance our international marketing and promotions activity.

Our recent work has included conducting substantive research into both what our target visitors want from a destination and

Today’s global traveller expects to be connected everywhere they go. We are living in an ‘always-on’ culture. Technology and connectivity are reshaping the tourism experience – changing the way we research, plan and book our travel, as well as how we share our experiencesover our own social platforms as well as via ‘rate and review’ sites”

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how Dubai’s offering is perceived; developing a new digital ecosystem (the launch of which is imminent), and reviewing our overseas office structure, which since announcing the Tourism Vision in May 2013, has included the opening of our first South America office in Brazil and our fourth office in China bringing our total of overseas offices to 20.

Dubai’s current destination offering is very strong and while we were the 8th most visited city in the world by international visitors in 2012, we have climbed to 5th most according to latest statistics from MasterCard.

Throughout the emirate whether in the beach and marine environment, in the city or in the desert, tourists enjoy a range of remarkable experiences. For example, earlier this year Dubai was voted by TripAdvisor the World’s Number One Destination for Hotels, a testament to the extraordinary experiences and service that can be enjoyed in our hotels. The emirate was also named World’s Number One Destination for Retail, and of course Dubai is famous for its shopping offer. We believe that it is the experiences that can be had while in our malls and souks that make our offer remarkable – for example visiting SkiDubai in Mall of the Emirates, bartering in the souks around the Creek, or visiting the Aquarium or the Dubai Fountain in Dubai Mall. This ethos of providing a series of remarkable experiences which are beyond the norm is carried through our entire destination offering, from a hot air balloon over the desert or a seaplane over the city to one day eating a gourmet meal by a Michelin-starred chef and the next day tasting street food in Deira; from jet-skiing around The Palm Jumeirah to learning the hunting arts of the Bedouin during a desert safari.

The list of experiences is almost endless, but working with our partners, we continue to enhance the offering from the provision of more hotels and other forms of accommodation, to

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attractions, experiences and events. Since the Vision was launched, we have witnessed a number of landmark achievements and enhancements to our destination offerings across the hotel, attractions and events sectors. Two landmark achievements included winning the right to host Expo 2020 and the opening of the first phase of Dubai World Central. Both achievements will result in long term sustained growth.

We have also seen the opening of a large number of new hotels including five-star resorts, city hotels and a number of midmarket properties. New attractions such as The Beach at JBR, Citywalk in Jumeirah, Jumeriah Corniche and Burj Khalifa’s At the Top SKY have opened, while others have been announced, including Dubai Parks and Resorts, which will significantly contribute to attracting increased numbers of tourists from around the world.

To give a few further examples of DTCM’s work, this includes working with the hotel industry to increasingly diversify our hotel offer across all classifications, working with land owners and developers to encourage the development of attractions such as theme parks, working with our governmental colleagues to ensure our cultural and heritage offerings are promoted effectively, and continuing to add to our events calendar through the creation of new festivals such as the Dubai Motor Festival and Dubai Food Festival, both of which were introduced in the past year.

Businesses globally view Dubai’s growing economy as a perfect place for setting their sights on the Middle Eastern, Asian and African markets. What is the DTCM doing to attract emerging markets (the BRICS) to Dubai, whilst taking into account that the existing and wellestablished markets which are equally as important? How are these markets changing for Dubai and what policies have the DTCM made that will make a difference?

As mentioned above, the geographic location of Dubai is a major asset and through the implementation of a long-term strategy, the emirate has become the business hub of the MENASA supra-region.

Business Tourism – whether that’s being independent business travellers or visitors attending meetings, exhibitions, conferences and incentive trips – is a core part of our tourism economy and DTCM works closely with entities such as the Dubai Chamber of Commerce, FDI and

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Hotel guest numbers from China for H1 2014 were up 26 per cent on H1 2013, and it is now our sixth biggest source market”

the Dubai Economic Department, not to mention our venues, hotels and attractions to ensure Dubai continues to grow this sector. Further, we view a first-time business visitor as a future leisure visitor.

Dubai Tourism has 20 overseas offices, including offices in the BRICS nations, and by working closely with our partners at Emirates and flydubai we are better able to understand local market behaviours and travel drivers and create more targeted, more effective campaigns. As mentioned above, the development of our aviation sector has been at the heart of our success and growth as a travel destination.

Emirates now flies to more than 140 destinations and flydubai reaches 86, and with each new route launch come new opportunities to bring visitors to our city.

With the growth of the middle class in emerging markets – especially India and China – millions of people are already or will soon be travelling overseas for the first time. This presents an incredible opportunity in both business and leisure tourism, and is consequently a very competitive space. Dubai Tourism is making a significant investment in understanding just what these new travellers are looking for and how we can better cater to their needs, and we are seeing returns on this investment. Today, India is our number two source market after Saudi Arabia, with steady growth

in hotel guest numbers in the first half of this year. China is also showing significant growth – hotel guest numbers from China for H1 2014 were up 26 per cent on H1 2013, and it is now our sixth biggest source market. Aside from this, the 2013 opening of our first office in Brazil, which caters to the Latin America region, has resulted in an increase of nine per cent in hotel guests from this region in H1 2014 compared to the same period of last year.

But it is not just emerging markets that we focus on. Unlike many destinations, Dubai’s tourism economy benefits from a broad spread of source markets – if you look at our top 20 markets they cover the globe – and it is important that we continue to attract visitors from both mature and new markets. While the potential for long-term growth is highest in the emerging markets, this doesn’t mean that we are losing focus on traditional source markets and this includes new visitors as well as repeat visitors. We also have the opportunity to encourage more of the millions of people who transit through Dubai International Airport and Dubai World Central every year to stay with us and take some time to experience Dubai.

What are your goals and expectations for Dubai 2020?

In addition to achieving the aims of Dubai’s Tourism Vision for 2020, we

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believe that as host for the Expo 2020, we will be able to accelerate our tourism growth and evolution and help support a sustainable tourism model for many years to come.

The benefits of Expo 2020 in terms of job creation and positive economic impact are well documented, but it is also an incredible platform on which to showcase Dubai’s destination credentials and show the world just why Dubai is a ‘must-experience’ destination. In doing so, we can provide long-term benefits for the economy.

It is also important to remember that the successful UAE bid for Dubai to host Expo 2020 was not just a bid for the city, the nation or even the whole GCC. As the first World Expo in the MENASA supra-region, Expo 2020 will have an immediate and meaningful impact on the world’s emerging. This is an opportunity to change perceptions of the region internationally and through Expo 2020 create an inclusive platform that allows countries across the MENASA to be partners on global stage.

What do you see as the main challenges for Dubai to get it ready for 2020 and how are you overcoming these?

There is a very clear vision and strategy in place for ensuring that our tourism growth for 2020 is achieved and sustained year on year and this will ensure that when challenges arise we are well equipped to overcome them.

One such challenge is to manage the balance of supply and demand of hotel rooms. For a number of years Dubai’s hotels have enjoyed some of the world’s highest occupancy rates and room rates. For long term growth we need to increase the emirate’s inventory of rooms whilst maintaining occupancy rates at amongst some of the highest in the world. Our pipeline shows that we will add around 15,000 rooms by the end of 2016 and we need to ensure the emirate’s portfolio caters to varying price points of business and leisure travellers. Bearing this in mind, we are aware that we need to continue to develop

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the mid-market segment, consequently the introduction of DTCM’s incentive programmes offered towards hotel investments in the 3 and 4 star offering. Hotels continue to work with government and other partners to ensure the average room rate does not creep too high: taking advantage of under-supply of hotel rooms for the short-term gain of increased revenue should not be sought to the detriment of long-term growth and we need to ensure Dubai remains competitive and not over-priced.

By September 2014, the number of hotel rooms had reached nearly 90,000 and in comparison to January – September 2013, these hotels have seen a growth of nearly six per cent in guest nights over the same period of this year. We are working with the private sector to sustain this growth and balance supply and demand through the opening of upcoming hotels.

We also want to make sure that we are maintaining the high levels of service that Dubai is known for by training young nationals to pursue fulfilling and rewarding careers within the travel and hospitality sectors. This includes opening a hospitality academy and providing the necessary specialised training for industry professionals.

How can people get involved with vision 2020 at grassroots level?

During the Expo bid we saw just how much grassroots support there was to bring the event to the UAE and Dubai. We believe residents are among the most important advocates within the tourism industry and with the bid, we saw true champions for the city emerge from every community and every industry – and I believe that, for the event itself, there will be even more support from the ground up.

Dubai Tourism is focused on becoming a very ‘social’ organisation, and we’re increasingly active on social media as well as connecting everyday with bloggers and influencers locally and globally so that we can harness the power of grassroots advocacy. We also actively support a number of

initiatives, including #MyDubai which was launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum in January. The project, with an e-museum curated by Dubai Tourism, aims to create the world’s first autobiography of a city by showcasing the lives and telling the stories of residents and visitors to Dubai.

It has become an incredibly successful means of capturing the more human elements of Dubai, as opposed to simply the physical landmarks of the city that have become so familiar around the world. And the reason it is successful is because it has been embraced and is now owned by the people of Dubai and the visitors who love our city.

Dubai has often been cited as being a millionaire’s playground with the 5 star hotels, restaurants and excellent shopping facilities, yet the need for hotels to be more diverse so Dubai can attract the family and sustainable tourism it requires is paramount to reach its 2020 goals. How are you working with the hotel industry to ensure that this is achieved?

Dubai’s hotel and hotel apartment portfolio has grown from 609 establishments in September 2013 to 634 in September 2014. That portfolio includes some of the world’s very best business hotels, desert retreats and beach resorts and our pipeline shows further five-star hotels and resorts will come online over the next few years. However, we know that given

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current demand and our ambitious future targets, there is also a need to increase three- and four-star hotel stock. In doing so, we increase the breadth of our appeal and cater to travellers whatever their budget.

With this in mind, a series of directives has been introduced to encourage investment in the midmarket segment. These include changes in legislation which will reduce the pre-approval process for properties from six months to two months as well as allocating government land ring-fenced for hotels with these star ratings.

There are also additional incentives in terms of change of land use and the waiving of Municipality fees for new three- and four-star hotels for a certain fixed period.

This timeframe varies according to a number of scenarios – for example, a hotel which obtained a building permit before 1 October 2013 and will receive guests before New Year’s Eve 2017 will be granted a two-year waiver on Municipality fees on revenue from the date of arrival of the first guests; whereas a hotel receiving a building permit from October 2013 to 31 December 2017 has four years’ waiver from the date of receipt of that permit – and if they are operational and receiving guests before 1 July 2017, they will receive an additional year’s waiver extension.

This is an area where we are working closely with the hotel industry and our partners in Government to help stimulate sector investment and to make it easier and quicker to build, open and operate three- and four-star properties. This will help to bring greater balance and more choice of budget options, and it will lead to further maturation of Dubai’s accommodation portfolio.

Events are also increasing in popularity as Dubai sets itself on the global events calendar as somewhere to be seen and to showcase – Either B2B or B2C events. What events would you like to see more of and why?

One of the major drivers for growth is, of course, the events sector – Dubai is home to more than half of the region’s business events

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in November 2014 and the Dubai Food Festival which returns in February 2015, demonstrate the contribution such festivals can make both to the events and entertainment calendars and to the growth of specific sectors.

“We benchmark ourselves against the world’s leading events destinations and recently the Emirate was named the “2014 World Festival and Event City” by the International Festivals and Events Association (IFEA).

This was testament to the packed year-round calendar of events and festivals across sport, arts, music, culture and retail, which provides entertainment to both residents and visitors” industry, as well as consumer-focused events ranging from concerts to sporting occasions to cultural happenings. We benchmark ourselves against the world’s leading events destinations and recently the Emirate was named the “2014 World Festival and Event City” by the International Festivals and Events Association (IFEA). This was testament to the packed year-round calendar of events and festivals across sport, arts, music, culture and retail, which provides entertainment to both residents and visitors.

Of course winning the bid for Expo 2020 illustrated Dubai’s capabilities as host city as well as the strengths we have in terms of connectivity, infrastructure and talent and these capabilities form the proof points for our strategy to attract tier one events from both business and leisure segments. We are also always looking for ways in which we can expand our events sector still further by creating and staging our own events and festivals. January 2015 sees the 20th edition of the Dubai Shopping Festival which created the template for city-wide festivals and recent additions to the calendar such as the Dubai Motor Festival which returns for the 2nd edition

Dubai is very fast becoming a smart city.

How are you involved in increasing the digital presence of the city?

Today’s global traveller expects to be connected everywhere they go. We are living in an ‘always-on’ culture. Technology and connectivity are reshaping the tourism experience – changing the way we research, plan and book our travel, as well as how we share our experiences over our own social platforms as well as via ‘rate and review’ sites.

At this year’s GITEX Technology Week (October 2014) we previewed our new website and mobile app in beta versions. The new website is designed to deliver a significantly enhanced user experience and is a much more engaging, informative and intuitive experience with rich content designed for multiple audiences – business and leisure travellers, travel trade professionals and media. The new mobile app is designed for Dubai’s visitors, as well as any residents with yearning to be tourists in their own city, and uses beacon locator technology to alert its users to special deals, offers and attractions in the immediate locale.

The overarching Smart City Strategy launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum is driving the future connectivity of Dubai, and we see it and the initiatives stemming from it as increasingly important tourism drivers.

You are an MBA graduate who studied at the London Business School, what would be your one piece of advice to business leaders across Dubai ahead of 2020?

I would call on business leaders not just in Dubai but across the region, to show their support for both the Tourism Vision 2020 and for Expo 2020. For the Expo bid itself, we saw just how big the impact can be when we all work together to achieve a common goal – public sector and private sector, organisations and individuals.

But I would highlight the fact that the hosting of Expo is a landmark point on a continual journey – not the destination. It provides a focus from which we can create possibilities for long-term and sustainable growth and success for our entire region. We have succeeded in securing a once-ina-lifetime opportunity to bring the world to the UAE, but we must always consider how we can use it to create and stimulate long-term economic growth, to generate employment opportunities, to change perceptions, to inspire future generations and to shape global futures. n

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MONEY

TO COMPLIMENT, NOT COMPETE Islamic Finance today is the fastest growing financial sector, growing at an annual rate of 11% and is estimated to become a US $2.5 trillion industry before 2015 by the UK Foreign & Common Wealth Office. Yet people don’t understand it and may discount it without understanding how it may be of benefit; however are they being too quick to judge? rnst & Young estimate that Sharia Compliant financial assets around the world have hit US $1.8 trillion in 2013. From 2008 to 20012, they calculate that there has been an annual growth of 19% per annum and considering it was US $5 billion back in the 1980s, it has certainly come a long way.

Globally, banks hold over 90% of Islamic assets, and are big investors in sukuk bond (Islamic bonds), which are growing at a phenomenal rate. 2012 reports from Zawya showed global sukuk issuance nearly doubled when compared to 2011. More than 500 institutions globally offer Islamic banking and investment products and services to both retail and corporate customers.

Interestingly apart from growing faster, Islamic banks emerged from the crisis with their balance sheet unscathed mainly because of their business model and the exclusion of certain things; which has given them natural shield from the general meltdown and edge over conventional banking for offering safety and stability.

This may be what accounts for Reuters confirming that in 2012, US $34bn in sukuk was issued to businesses through the London Stock Exchange.

E

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Advantages All of this is only possible because of the basic principals behind Islamic finance, which we will discuss in more detail in our next issue. Not only in terms of the structure of the finance platform, but also the moral and ethical consideration to the application of the funds as this has to be consistent with the standards laid down by the Sharia board.

Tirad M. Mahmoud, CEO, Abu Dhabi Islamic Bank summarises the benefits of Islamic finance and the resilience of this sector, “Islamic banks comply with a number of laws as well as regulations and values based in religion. Generally speaking, sharia-compliant banks have targeted businesses that are connected to the real economy. These include trade, development, housing programmes, infrastructure and other assets that are part of the long-term economic development cycle.

Since Islamic banks do not indulge in speculation and are attached to normal economic activities, risks taken by them are less.”

Furthermore Islamic banks bring ‘saver’ and ‘investor’ closer to real market by eliminating the barriers

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between them. The nature of the financial intermediation significantly differs from conventional banks and is in harmony with the market.

In Islamic Finance interest is prohibited for borrowing. Instead Islamic finance propagates sharing of profits and losses equally between borrowers and lenders. So instead of lending money in return for interest payments, Islamic banks would lend money in return for an eventual share of the profits or loss generated from the business.

Another important characteristic, which forms the basis for the development of Islamic banks, are the depositors. They deal with their customers on investment grounds rather than a pre-determined fixed interest rate. They invest the money of their depositors on profitable projects following a strategic analysis, giving a substantial return to their depositors.

Thus, each bank will attempt to outperform other banks if it wants to attract funds from investors.

Are the advantages strong enough to outpace conventional banking?

Mahmoud says, “In light of what has happened with the global financial crisis, businesses are taking stock and listening to clients’ demand for morally-sound practices. Islamic banks are well suited to cater here. If this business model is more successfully publicised, then demand for sharia-compliant banks and their services will increase dramatically and outpace conventional banks.”

Expansion The nature of Islamic finance has changed drastically over the years. It is no longer considered archaic and religion bound, but more as an alternate mode of finance, catering to both Muslims and non-Muslims.

The introduction of new instruments and financial products upgrades earlier practices; and with the evolution of regulatory and legal framework it has made it more user and market friendly.

The potential for growth of course depends on banks offering products with broader appeal. While Sukuk appears to be the most popular product, demand is growing for other services such as insurance, wealth management, project finance, private equity, mortgage and capital market insurance are increasing.

Seeing immense potential of Islamic Finance, France and Korea have introduced

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2012, US $34bn in sukuk was issued to businesses through the London Stock Exchange” Reuters

laws for issuing sukuk and Islamic banks have recently opened in China. Citigroup, Standard Chartered, HSBC, Deutsche Bank and BNP Paribas have all taken steps to seize growth in this area.

And there are more joining the fray.

Bloomberg have built deep product suites and a raft of indices to offer their customers Islamic finance instruments. London’s Islamic property funds encompass buildings from the Shard to regular family homes. The UK capital has more sharia-compliant financial institutions than any other western city.

Challenges One of the major issues with Islamic finance expanding around the globe is the varying interpretation of Islamic laws in different countries. For example a contract drawn in Dubai may not be recognised in Malaysia. Even the local markets suffer from lack of clarity in rules and regulations when entering international arena.

“In Malaysia we have best practices. We have existing rules and regulation, but what we have additionally for Islamic banking is clear regulations that allow us to have a better turnaround time for products and services. This is what we hope to have in other countries as well,” says Muzaffar Hisham, Head of Maybank Islamic.

Mahmoud explains the problem behind uniformity of laws slightly differently, “Many people would like to have sharia regulations

simplified but this is not easy. Interpretation of Islamic religious laws can be more flexible in one school of thought, but no one law can overwrite another. Sharia rules around the world have similar fundamentals, which are interpreted differently as a result of these different schools of thought. There is sufficient diversity, which in turn brings more flexibility into Islamic financial products and services.”

A lack of standardisation is not the only hurdle the sector is facing. As a financial practice, which is supposed to be based on ethics only, there are questions of integrity in certain products. According to Mohamed Akram Laldin, Executive Director of International Shariah Research Academy for Islamic finance, “80% of Islamic financial products are merely Islamised versions of conventional ones.” Also there is shortage of expertise in this field resulting in many Sharia scholars sitting on multiple boards.

To prevent these types of conflicts Laldin is leading the negotiations with his counterpart in Saudi Arabia to create common regulations for Sharia scholars, and to set up a global certification board. “This is important because we want to boost the confidence of the investors and we want to be transparent,” he says. “At the end of the day, this is what Islam is propagating.”

While the prognosis will be clearer a few years down, it is true that suddenly it’s become more about the numbers and interests, and less about a leap of faith. n

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By Jonathan Hall Founder and Managing Director, Mulverhill Associates

WRITING A BUSINESS PLAN FOR INVESTORS – OBSERVATIONS FROM THE FRONT LINE

For a business owner, deciding to seek outside investors is one of the most important and difficult decisions to make. So who better to give advice than Jonathan Hall, who is the founder and Managing Director of Mulverhill Associates, an investment and advisory firm based in Dubai and was previously an Executive Director of Abraaj Capital?! Jonathan is an active angel investor and is currently a board member of compareit4me.com, InfoPod and jamalon.com

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eeking outside investment marks a critical point in the development of the company. Our focus in this article is on small and medium sized businesses that are looking for external funding to support and accelerate their business plans. We are not concerned here with larger corporates or with companies that are struggling and may need new finance to survive.

The general background to the companies that are the focus of this article will be one of relative success; one where the company has proven its business model and now wishes to build on that foundation and expand. We also assume that the investors in question here are independent financial investors and do not have any of the other emotional or relationship reasons to invest that may be true of family and friends.

S

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Be specific on the amount of new funding that is required, be clear on the intended uses of this cash and reflect”

any business in a single sentence. That is not to say at all that every business is simple; clearly that is not the case. For a business plan though, that may go out to a wide range of potential investors it is worth assuming you are addressing a relatively well-informed and intelligent person but someone who is not an expert in your specific field. So start with an understandable overview of the company, its products and services. Work step by step through the company’s position within the broader industry: the size and any main trends the industry is experiencing; highlight what it is that makes the business attractive and explain why the company has been successful and will continue to grow. Including figures and numbers is always helpful: headline sales and profitability for the company; market size and predicted growth rates for the industry. Also, don’t underestimate the value of a few select graphs or photographs (of products, not you).

There is a fairly well established set of items that any financial investor will expect to receive and the most important of these are outlined in this short article alongside thoughts on; how best to approach and address such a business plan, what should and should not be included, and ultimately, how to make the most positive impression on your selected target audience.

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It is assumed that confidentiality agreements have been signed and that there is no competitive issue with disclosure of information. All observations detailed in this article come from extensive road testing over the past 15 years as a professional and personal investor and as a small business owner, and for good and for bad have been borne out on many occasions…

Be Clear and Avoid Jargon With very few exceptions, it should be possible to describe the purpose of

Be Positive, Honest and Realistic Financial reports – many entrepreneurs do them only under duress and want to focus on building the company. Unfortunately, investors love reports and more practically need them to make a reasoned decision. It also goes a long way to reassuring investors that their funding will be well looked after if the business owner is clearly in touch with, and knows the details of, the company’s finances and cash flow.

As a base requirement, an investor would like to

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see a minimum of 3 years actual historic financial results, ideally audited and a forward looking set of forecasts covering the next 3 years, with again, the first year broken out month by month.

Shorter periods may be fine, if the company is very young for example, but not as a rule.

Investors do appreciate that nobody can tell the future but it is important to demonstrate that there is a defined plan and that the various elements fit together.

Be specific on the amount of new funding that is required, be clear on the intended uses of this cash and reflect, in the future forecasts, the projected outcomes of this expenditure.

Don’t forget cash flow and working capital – for example, if customers pay in 90 days then every increase in annual sales means another 25% of these extra sales needs to be funded in receivables.

Furthermore, if as founder, you don’t take a salary and only take drawings or bill personal expenses to the company, then either you should consider this going for ward or you must expect an investor to adjust for this and to look at a realistic, appropriate expense base.

Demonstrate Ability and Awareness Management is the single most critical factor in the success or failure of a business. Investors are therefore very focused on understanding whom they are relying on to run the company and to implement the plan that has been presented. Personal interactions will ultimately seal any decision (on both sides), but a complete and reasonably detailed history, together with a background of the members of the senior management team with any key technical

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“As a base requirement, an investor would like to see a minimum of 3 years actual historic financial results, ideally audited and a forward looking set of forecasts covering the next 3 years” Jonathan hall positions, is very useful for investors at this stage; as is identifying any gaps in the current team and setting out a plan to fill them.

Market dynamics and the target customer base are very high on investors’ lists of items to understand and validate.

These of course vary widely from business to business but aim to provide a good summary and mitigate any obvious risks.

Do you have thousands of small retail customers or a handful of major corporate relationships? Is there a clear trend one way or the other for your business or the sector as a whole? Is the trend local or global, and what is your strategy to address and take advantage of this?

Lastly, it is perhaps a natural instinct not to want to discuss or highlight any competing companies but investors will usually ask and it is worth including at least a brief overview of the businesses that most directly compete for the same custom.

Highlighting your relative strengths is positive, but being overly critical of others is generally not (save this for one-on-one meetings). The presence of much larger

firms may present a challenge but it also highlights to investors the potential for future scale as well as potential sale options.

In conclusion, be prepared and approach potential investors with confidence. n Jonathan Hall’s Top Tips ll Research the investor to ensure that there is no competitive issue regarding the duty of disclosure ll Approach only when confidentiality agreements have been agreed and signed ll Provide an over view of the business - Including business within the broader market, why your business is successful and will continue to grow ll Include 3 years actual accounts and 3 years projected accounts (with the first year projected month by month) and Cashflow calculations ll Be specific on the amount of money required and what you will be using this for ll Include market dynamics, customer base and management biographies ll Highlight your strengths against that of your competitors (without being overly critical) ll Ask a business friend or two that you trust, to pretend that they will want to invest and read through your plan. Make a note of their questions and answer these in the plan

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FORWARD THINKING & FRESH IDEAS

• Accounting

& Compilation • CFO Services • Company Incorporation Services • Market Research and Business Plan • Credit and Working Capital Management • Enterprise Risk Management • Operational Improvement Services • Business Valuation • Audit & Assurance • Business process reviews • Business process re-engineering P.O. Box No: 26869, 108 & 109 - Al Diyafa Shopping Centre, Satwa, Dubai, U.A.E., Tel: +971 4 345 1522, Fax: +971 4 345 2512

Tel: +971 6 552 7881, Fax: +971 6 552 7882 Email: ethics@emirates.net.ae

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people

KEY SKILLS FOR THE 21ST CENTURY MANAGER

BY CERI MCVITTIE, MCIP

We are certainly living in changing times. In the last decade alone we have seen a multitude of changes in technology, social media and both the local and global financial economies that have had an immense impact on how our businesses need to run and operate to remain successful in our modern and very competitive markets. So what do all these changes and development in the 21st Century mean for managers today? More importantly what will it mean for them for the future?

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he world of work has indeed changed dramatically, companies are more global and employee groups more diverse than ever before. Organisation structures are less hierarchical and more collaborative and for the first time we are seeing 4 generations (Traditionalists, Baby boomers, Gen X, Gen Y) within the workforce and 5 generations within the market place (Traditionalists, Baby boomers, Gen X, Gen Y and iGen).

Managers are at the heart of how any business operates and are key to its success; after all it has been proven that people leave bosses not companies!

Gone are the days when managers could manage by command and control within a localised workforce who had limited access to technology. Managers now need to create and maintain a work environment that supports complex human interactions, embraces innovation, retains valuable knowledge workers and also act as catalyst for change while also ensuring that they themselves remain productive.

In order to survive as a manager you need to be equipped to deal with the many challenges a global, culturally diverse and technology driven workforce, be a coach and mentor, as well as top negotiator‌ sounds like a tall order doesn’t it?!

Gone are the days when you assumed a management role just for being around in a company long enough and that role was simply to plan, monitor, direct and control the

T

work of others. Today managers have to deliver on these basic responsibilities, yet continue to master the art of people management in environments that change rapidly. In light of this there is a greater expectation in the 21st Century for managers to come to the table with many of the above skills and abilities already in their repertoire to demonstrate they can manage successfully.

There is a lot of information out there on how to manage successfully and it can be mindboggling, but to simplify things the key question to therefore ask is, what are the fundamental building blocks I need to be an effective manager? In our constantly changing and evolving workforce if you develop skills in just the following two essential areas, and consistently build upon them, these will be your keys to successful management in the 21st Century.

People Developed people skills are the cornerstone of effective management.

Good interpersonal skills are essential ,as are effective communication skills.

The ability to be engage, be understood, and share thoughts and ideas, as well as giving feedback which can either positively or negatively impact on the bottom line are essential. Good communication is critical to all areas of work and it is essential that managers become competent communicators.

As our work environments grow, ever more diverse are the skills which

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people

Code Switching between cultures is a principle skill that managers require” Harvard Business Review article, ‘Three Skills Every 21st Century Manager Needs

6.

are important to build relationships of trust and respect with people at all levels and of all cultures. ‘Culture competence’ or the ability to interact effectively with people of different cultures is an important factor in developing effective professional relationships.

The importance of which is reflected in a Harvard Business Review article, ‘Three Skills Every 21st Century Manager Needs’ which listed “Code Switching between cultures” as a principle skill that managers require.

Change Management Change is the new norm and managers nowadays have to be agile, adaptable and open and welcoming to change. Managers very often have to be the catalyst and champion for change within the organisation. Changes in technology could have an impact on working procedures, the structure of the organisation and its people. The ability to manage change well is therefore a vital skill for managers.

Managers need to be able to do the following to manage change successfully:

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2.

3.

4.

5.

Communicate Well: Have open conversations with staff (informally as well as formally) and embrace them in finding winwin solutions to change.

Have A Clear Vision: Really understand where the business is going. Conduct collaborative visioning work with people and share it enthusiastically and effectively.

Be Consistent: Every activity within a change process is delivered in line with a plan.

Build Rapport: Build close relationships with your people.

Develop Trust: Show you care and are doing the best you can for the good of as many as possible. Your behaviours should be such that people trust you as far as possible because their experiences with you to date show them they can.

Plan Well: Good change managers have considered all options (often under advisement from their people through discussion).

7. Have a Disciplined Approach: Stick closely to the planned process and timescales for the changes to be made, this will build confidence in you as a leader and ensure that others see you mean business.

8. Stick to your guns: The best change managers do not shift from the agreed outcomes.

Whatever emotional pressures you face you should show you are still flexible where common sense dictates it so, but otherwise stick to the fixed outcomes.

9. Treat People Well: Honour people for themselves and treat them with respect and dignity.

10. Are Results Focused: Make decisions based on true valuecreation and use that as your over-riding goal. Do not lose sight of the purpose of change and enthusiastically underwrite it, even if it has been imposed organisationally on you.

These are the skills that will ensure you remain relevant now and position you for the future as more change is evitable and as we know the fundamental managers role is to manage people.

However, you should continually evaluate all your knowledge, skills, abilities to determine your strengths and weaknesses and ensure you have development plan that focuses on utilising your strengths and develops you in the areas you may be lacking.

At the end of the day, it is continuous personal development for the individual concerned, which is key to being a successful 21st Century manager. n

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people

By Ludmila Yamalova Managing Partner, HPL Yamalova & Plewka

Legal Basics Every Employer in U.A.E. Should Tell Their Employees Educating employees about the legalities of working and living in the U.A.E. is in the interest of every employer, just as much as it is in the interest of employees. For employers, the costs of unproductive or even worse destructive, or simply missing employees are not to be underestimated. Those costs are not just limited to the number of days of absence from work.

The time and resources required for the company to resolve employee related issues can be significant sometimes setting companies back for months.

Furthermore under the U.A.E.’s employment law, having to terminate an employee and then replace him, involves costs that go far beyond just an employee’s salary. Those costs include visa costs, insurance costs, travel costs, attestation costs and finally but not least, end of service benefits

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November 2014

s such, companies would greatly benefit by conducting employee training, setting out legal framework of employee rights and limitations, at the outset and with periodic refreshers.

This would both educate the employees and help the company detect and address potential issues early on.

The U.A.E., just like any other country, has its own specific laws and practice regarding rights and limitations of those who come here to live and work. Violation of those norms can bear significant repercussions, ranging from a monetary fine, imprisonment, deportation or a combination of penalties. Yet, many people make the mistake, taking it for granted that the rules in this country are similar to those of their home countries. Actions are often taken and statements are made relying on false assumptions or lack of information, sometimes leading to grave consequences. Ignorance of the law is no excuse, however.

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Because of these differences, which affect both employers and employees, there are core legal principles that every employer should educate their employees on.

Some relate to the business context of employment, while others to personal matters, yet also affecting the employment relationship. Both are equally important.

Employment Context In the context of employment, certain legal issues tend to arise more often and carry more serious consequences.

Some of the violations could lead to criminal liability, in addition to civil ones, resulting in imprisonment and deportation. Companies would be better served to educate their employees about the issues at the outset.

Employment Visa Limitation As a general rule, employees must know that under the U.A.E. employment law, they are only allowed to work for a company

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people

There are certain grounds of dismissal that would entitle a company to dismiss an employee without notice and without the payment of the end of services benefits if the illness is the direct result of the employee’s misconduct.

An employee who fails to report back to work after exhausting all sick leave can be terminated.

Employees are not eligible to take any vacation until the end of their probation period. Until they have served a year with the company, their vacation days are also limited.

that sponsors their visa. Therefore technically speaking, it is illegal for employees to work for anyone other than their direct employer. There are a few exceptions to this rule, but all of them require written consent of the sponsoring party and a number of other legal nuances.

Penalties for working for a company other than the sponsoring employer can, and often does, result in a monetary fine, and depending on the circumstances imprisonment, and ultimately deportation. This is governed by the U.A.E. immigration law and applies equally across the country.

Working Hours The working hours in the U.A.E. are 48 hours in a week. The work week is six days, from Saturday through Thursday. Managers and certain positions of responsibility could be exempt from this limitation.

Grounds for Dismissal There are certain grounds of dismissal that would entitle a company to dismiss an employee

without notice and without the payment of the end of services benefits. Some of those reasons are, when an employee; 1. Assumes a false identity or submits forged documents 2. Commits a fault resulting in substantial loss to the employer 3. Disobeys instructions on the safety of workplace 4. Defaults on his basic duties under the contract and fails to redress such default despite a written warning 5. Is convicted by a competent court of a crime against honour, honesty or public morals 6. Reveals confidential information of his employer 7. Is found drunk or under influence during working hours 8. Assaults his workmates during working hours Employee Criminal Liability An employee can be subject to criminal liability for certain acts that relate to his employment. These violations arise under a series of laws, including employment, intellectual property, cyber, media and penal.

For example, forging documents or misrepresenting credentials is punished under the penal law, carrying severe criminal sanctions. Making public comments that may be considered disparaging or offensive in nature could also lead to criminal liability. Truth is not always a defense. Breach of company’s trust is also a crime under the penal code. So is employee’s disclosure of company confidential information.

Notice Period/Probation Period Should an employee wish to terminate his employment with the company, he is required to provide the company with a minimum of one month notice or whatever is contractually agreed on. Some contracts provide for a notice period of six months. This rule applies after an employee has served their probation period, which can last a maximum of six months. If an employee leaves without giving proper notice, he may forfeit his end of service benefits.

Sick Leave/Holidays An employee is not entitled to any paid sick leave during the probation period. After probation, no wage will be paid for sick leave

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November 2014 | 37

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4,000, without accommodation. An employee should also have a certain size accommodation, which is registered with the government. Some nationalities however, are sometimes excluded.

A husband can also sponsor his wife to work.

A female employee can sponsor her family and spouse only if she is in a managerial position, holds a university degree and earns a monthly salary of at least AED 10,000. A husband however cannot work on wife’s sponsorship.

An employee can be subject to criminal liability for certain acts that relate to his employment

Misappropriating company’s funds, secrets or intellectual property is considered theft and criminal in nature, either under the penal code, intellectual property law or cyber law.

Personal Life There are also a number of factors that employees should be aware of in their personal lives. It would equally benefit employers to educate and remind their employees of those issues.

Taking on Financial Obligations It is important to educate employees about the repercussions of taking on financial obligations in the U.A.E. In the U.A.E., most financial obligations such as car loan, credit card, personal loan or mortgage, are secured by undated security cheques. In the event that an employee’s financial situation changes and he unable to service his debt, the creditors have the right to deposit those

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security cheques. In the event that an employee does not have sufficient funds to settle that cheque, the cheque will bounce.

A bounced cheque in the U.A.E. is a criminal offence and is treated independently from any other terms and conditions it might have been issued as part of.

If an employee is not able to settle the amount of the cheque immediately, a criminal case is filed.

While the case is being adjudicated before the criminal court, the passport of the employee remains in the custody of the police. During this time, the employee cannot travel in or out of the country.

This could also impede employee’s ability to perform his roles and responsibilities with the company.

Sponsoring Family If an employee wants to sponsor his family, he must show at least AED 3,000 monthly salary, plus accommodation, or AED

Alcohol License Most employees are not aware that, as residents of the U.A.E., they are required to have an alcohol license in order to drink or own alcohol. Only non-Muslim residents are qualified to apply for an alcohol license.

Anyone who consumes or possesses alcohol without such license is committing a crime under the U.A.E. penal code. If caught under such circumstances, an employee is first arrested by the police and taken into police custody to provide a statement. The employee can only leave policy custody on bail, in exchange for depositing his passport with the police. If he does not have a passport on him, often he will have to spend a night in jail until he is able to secure his passport.

While the ultimate fine for the offense is usually between AED 1,000 - AED 5,000 or imprisonment, the time it takes for the case to be heard and finally decided by the judge is on average six months. During this time, the employee will not have the benefit of his/her passport and, as such cannot leave the country, on business or otherwise.

Unmarried Couples Employees should also be advised that under the U.A.E. law, unmarried couples are not allowed to live together. While many couples live together without any problems, doing so is a crime. And if there is ever an inspection, both individuals would go to jail.

Misbehavior in Public Excessive public display of affection can be considered an offense and, depending on the circumstances, can lead to jail and deportation. Using profanity or offensive gestures is always a serious offense in the U.A.E., punishable by imprisonment and deportation. So is making statements against Islam or against the rulers of the country.

Finally eating, drinking and smoking in public during Ramadan can first lead to a warning, then a fine and ultimately jail. n

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LEGAL

By Ludmila Yamalova Managing Partner, HPL Yamalova & Plewka

Visa and Immigration in the U.A.E.

Under the U.A.E. immigration law, the two most common types of visas allowing one to enter the country, are a tourist visa and a residence visa. There are a few other types of visas, which are less common and some of which are either fairly recent or are being recently amended. This includes among other things, a student visa, property investor entry-permit and multi-entry work visa. In general, the biggest differences in visa types lie between residence visa and all other visas. The residence visa offers the greatest range of benefits

Tourist Visa A tourist visa is a one-time entry permit which you may require should you wish to entertain clients from abroad and is therefore sensible that you are aware of the legalities behind it. It is limited in the duration of stay, with thirty days being most common.

Some nationalities are exempt from having to obtain an actual physical visa in their passport. Those nationalities include, but are not limited to most European countries, the U.S., Australia, New Zealand, Japan, South Korea, Hong Kong and Malaysia. They receive a visa on arrival in the form of an entry stamp.

The visa is valid for thirty days, but could be extended for a few extra days at a daily fee.

There are no restrictions as to how soon or

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often citizens of these countries can reenter the U.A.E. after they depart. The list of countries that qualify for a visa on arrival is constantly being updated.

Other nationalities are required to obtain a physical visa in their passport, which must be processed in advance. For some of these nationalities, once they leave the U.A.E., they are required to wait for at least thirty days before qualifying to apply for a return visa to the U.A.E. While not explicitly stated, a tourist visa entitles tourists to certain benefits, beyond the typical tourist activities. For example, a tourist visa allows consumption and possession of alcohol without the need of an alcohol license. By comparison, all non-Muslim

U.A.E. residents are required to have an alcohol license to possess or consume alcohol and, in the event they don’t, they face criminal penalties. Visitors can rent cars, though some countries may require an international driving license.

Beyond this, a tourist visa is limited. One is not allowed to work under a tourist visa. Working while on a tourist visa will result in a fine and either/or jail and deportation, if ever caught. A tourist cannot open a bank account in the U.A.E. or qualify for any other banking facilities. Nor can he sponsor his family, requiring all family members to apply for their own visa.

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LEGAL

A tourist visa however does allow someone to buy and own property in the U.A.E. although it does not allow owning a car, as the U.A.E. residency is required to register it.

Residence Visa Residence visa is issued to those who either work in the U.A.E. or own a business registered in the country and can include family members. Residence visa grants a wide range of benefits.

A residence status, either by virtue of employment or business ownership allows for sponsorship of family members. This includes spouse and children, as well as parents. To qualify, a man can sponsor

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his family if he earns at least AED 3,000 per month plus accommodation, or AED 4,000 a month, without accommodation.

He is also required to secure independent accommodation and show a registered tenancy contract in his name. The size of the property must correspond with the size of the family. A woman can sponsor her family only if she is married and subject to further restrictions. She must also hold a college degree and earn at least AED 10,000 per month. Furthermore, under the residence visa one can sponsor domestic help, such as a maid, nanny or driver.

A woman under her husband’s or father’s sponsorship can also work, with a no-objection from her male sponsor.

A tourist visa entitles tourists to certain benefits, beyond the typical tourist activities

A reverse however is not possible. That is to say, a husband sponsored by his wife cannot work in the U.A.E. He must obtain his own employment visa.

A residence visa entitles the holder to open a local bank account and qualify for a full range of banking facilities, buy a car or lease a property. Sponsored children can be enrolled

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LEGAL

in local schools. A word of caution for spouses bringing children into the U.A.E. from previous marriages; the Government requires a no objection from the other parent, in order to qualify for residency. Noteworthy without a residence visa, none of these benefits are otherwise available.

Residence visa is usually granted either for two or three years, depending on the issuing authority. It allows unlimited entry into, and stay in the country provided a resident visit’s the U.A.E. at least every six months.

In the event of change in employment either through termination or a new job, a residence visa has to either be cancelled or transferred. To cancel a residence visa, most of the time, you must first cancel the dependents visas. Depending on the relevant issuing authority, some visas can be transferred; in

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A woman under her husband’s or father’s sponsorship can also work, with a no-objection from her male sponsor particular from a free zone to a different free zone. Some nationalities however are required to exit the country before they are allowed to reenter on a new employment permit.

Multiple-Entry Visa In addition to the tourist and residence visas, there are multiple-entry visas issued for certain purposes. In terms of scope, these visas are more like tourist visas than residence visas.

One such visa is a multiple-entry permit available to those who own property in the U.A.E. valued at more than AED 1 mil. This permit provides an unlimited number of entries into the country for six months and unlimited stay during that time. This visa also allows for sponsorship of the immediate family (spouse and children) on the same basis.

Multiple entry visas can also be issued for visitors on business for companies registered in the U.A.E. Similarly, tourists on ships whose programs involve multiple entries into the country qualify for multipleentry visas. These visas are also valid for six months at thirty days for each entry (except for tourists it is 60 days).

Conclusion In general, immigration policies are being constantly reviewed and updated. The U.A.E. Ministry of Interior publishes many of the relevant updates and specific fees on its website. One thing is clear though immigration in the U.A.E. is a matter of federal policy and all immigrations laws are uniform across the country. n

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marketing & Advertising

Marketing We Are Missing Out On Marketing is one of those things… We know we should do it, but often we don’t; it gets the first cut in times of trouble, and people seem stave off investment into it until it’s a last resort. However, brand recognition is important. We need people to see what we are doing so they will buy from us

e all know marketing can be expensive so wouldn’t it be easier if your customers did your marketing for you? Well this is the new front of marketing, and companies around the world are doing just that! In our article, we give you 9 Top Tips on how to engage your clientele to market your company on your behalf.

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1. Give Rewards Get clients to tell you what they think of your product/service directly on your website/ Instagram/Pinterest/Twitter etc. to make them feel connected. Food chains in America offer “Taste-a-Monials” on their websites with incentives. This draws attention to the website,

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engaging customers in interesting features, and generates higher sales. Remember to make the amount of work to win the giveaway commensurate with the value of the prize.

Share a photo of your coffee mug, win a cup of coffee; that kind of thing.

Be careful not to alienate your current clientele. No one wants to see their Facebook feeds cluttered with giveaways each morning, so don’t over-do it. Consider asking your clients for their involvement before doing this.

They may be impressed that they were asked and are likely to be very accommodating.

2. Know Your Customer Little things like having a phone recognition service so you can answer the

phone to your customer using their names goes a long way. Taking it further and remembering personal details about them makes them feel valued and in turn will get them to talk about you to other people.

3. Make Customers Feel Important Yes, knowing your customer will make them feel important, but we are saying to make them feel important on every level. If they are interacting with you by social media (posting a picture for example), ask them to write a couple of paragraphs about that image. Then repost the picture to any platform you choose; use it on

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marketing & Advertising

A tourist visa entitles tourists to certain benefits, beyond the typical tourist activities

by a company website/newsletter. If you have negative feedback, you can acknowledge this and work on the problem area, letting people know that you have rectified this.

7. Customers Create Marketing Material Already we have shown you ways to use Social Media more effectively. This is because social media engages customers emotionally with brands quickly, and their comments or photos can produce the best marketing.

Generate further interest by blogging and have having people comment on them.

your blog, or in your business premises or else post it on Facebook and/or Twitter and you can ask others to send in their pictures too, reposting as you go along.

If you are going to post it online, include a link to them (be it their twitter name, Facebook page etc.)

4. Make It Unique Creating something unique also creates a huge buzz. Nike were highly successful with the campaign “The Chance” whereby youngsters from all of the world were able to compete for a chance to win a place at the Nike Academy for a year enabling them to play against Premier League Reserve teams. The campaign itself had participants create over 17,000 Facebook pages, reach 5.5 million people with 28,000 posts of people playing football and 2,000 YouTube videos.

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5. How Do You Use Yours?

Did you know that your wood polisher spray was also highly effective for cleaning windows? No? Well if you don’t, then it is likely that potential customers wouldn’t know it too. By having platforms where they can provide this feedback to the general community, you will generate increased sales. Get people to post pictures of them wearing an item of clothing you retail and tag you on Instagram or Pintrest.

If you supply produce to restaurants, ask them to post a recipe on your website and tag it on Pintrest. By doing this you tell potential customers that current users like what you’re selling and give them new ideas for ways on how they can use it.

6. Survey Your Customers By surveying your customers, you will get quotes and real feedback that you can then promote on social media sites or

8. Make Referring Easy And Appealing For those of you with website, make ‘tweet’ and ‘like’ buttons easily noticeable and ensure that they are easy to use. Send messages out to family and friends and ask that they ‘like’ your company page and spread the message too.

Asking for referrals is the easiest way to increase your sales, and using this technique will enable you to easily market your information in the future.

Another way to get referrals to work for you is to find your clients who have clients themselves and offer them an introducer’s fee when you turn them into your new customers.

Yes, this may slightly cut into your profits initially, but giving a little bit of something is better than keeping 100 per cent of nothing isn’t it?!

9. Use Your Super-Fans You know, the ones who always engage with you on social media sites. Email and ask them their ideas for what might be an interesting campaign for them. Remember, people love to feel important.

Ultimately, remember this isn’t about you. It is about getting the engagement of the community with the least amount of effort, but with the most ingenious ways of doing so.

What will you do? n

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marketing & Advertising

By John Brash CEO, Brash Brands

rands and branding are terms that are overused a lot in the business globally without people really understanding about them.

Often, people feel that their logo is their brand and fail to understand the significance of having their brand become the bloodline of their business. As we found out last month, the brand is a set of associations that someone will make with a company, service or individual. This is why it is vital that companies and individuals within the companies ‘live that brand’.

The Design Council in the UK are clear, “These associations may be intentional - that is, they may be actively promoted via marketing and corporate identity for example, or they may be outside the company’s control. For example, a poor press review for a new product might harm the product manufacturer’s overall brand by placing negative associations in people’s minds.”

John Brash of Brash Brands takes this further, “Brands are best understood as drivers of business growth. So, the key first question in setting up a brand is to ask yourself what you are seeking to achieve, as a business, and then you can think of what role the brand can play in helping to achieve that.”

The Design Council illustrate this concept by taking what is arguably the best-known product, or brand, in the world: Coca-Cola.

Although essentially just a soft drinks product, Coca-Cola the drink is eclipsed by the sheer might of Coca-Cola the brand.

This phenomenon is best summed up by the following quote from a Coca-Cola executive, “If Coca-Cola were to lose all of its productionrelated assets in a disaster, the company would survive. By contrast, if all consumers were

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Be clear about what you want to achieve and what you want people to think about you” John Brash CEO, Brash Brands

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Building A Brand

Last month’s article on the importance of brands raised a few questions – the most important of all being, “How can we build our own brand?” In our report, we show you how…

to have a sudden lapse of memory and forget everything related to Coca-Cola, the company would go out of business.”

The Design Council point out that in a 2007 survey of the value of global brands by branding agency Interbrand, Coca-Cola’s brand equity was valued at US$65.3bn, just under half the company’s true market value.

So what are these all-powerful associations?

For Coca-Cola, typical perceptions might be that it is the original cola drink (‘The Real Thing’), that its recipe is secret and unsurpassed, and so on. Visual associations include the red and white logo and the bottle shapes.

The Design Council pointed out that these

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marketing & Advertising

are mostly positive brand associations, but there may be negative ones too.

For example, Coca-Cola may be seen as unhealthy, or as a symbol of global imperialism by American brands. What is seen as a positive association to some may be unpleasant to others and negative perceptions could become attached to a brand’s identity even if the company strives to present a different character.

It’s All in the Mix Brash suggests that, if you’re thinking about how to rebrand your business its products or services, or if you want to assess where your brand stands at present, “Think about your business – the products and services you offer, the style of customer service you bring, and so on. What are the things that you think are most important to customers, and most different from what the competition offers?”

What’s The Big Idea?

The Big Idea is a summary of your company. What you are doing? How and Why? It should include your USPs, how you present these and any other ingredient that you believe is pertinent that the wider public should know. This is the basis that will form everything that you do, from your customer service to how your promotional material should look. The colours that you will be including throughout the office/shop/ staff uniforms/marketing literature to

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Ask a few people from your target demographic what is important to them. Don’t make assumptions” John Brash CEO, Brash Brands how you want your staff to address clients etc. The list is endless. You want the ‘Big Idea’ to permeate every area of your business so that your clients (both existing and potential), know instantly who you are and what you stand for.

The best way to establish your own Big Idea is to determine; • How can you be seen?

• What is your offer?

• What makes you different?

• How should you behave?

• What do consumers want or need?

• Is there a gap in the market?

Once you have these answers, “You then need to try and test this, to make sure that you are right. Speaking to customers/ potential customers via formal research is one way. Failing that ask a few people from your target demographic what is important to them. Don’t make assumptions. It’s vital at this point to also take a good hard look at the competition and, if possible, to experience their products and services first hand. How different is your offer in reality?

Are there any points of weakness that you can take advantage of to gain competitive advantage?” says Brash.

Values A great way to highlight this is with using Jim Will Fix It as a case study. The founding partners took a rigorous branding analysis prior to starting their business.

The founding partners both stood outside of several well know supermarkets in their target areas of Dubai with a list of questions that they wanted the answers to. They found that people felt as though the workmen that were available at the time weren’t educated to a western way. People were struggling getting electricians that they trusted to do the work. This foresight enabled the founders to hire UK qualified staff and implement rigorous training patterns for their workers to ensure that every one of their client facing staff adhered to western recognised practices. This enabled them to form their USPs, their brand and helped them become one of the most recognised companies in Dubai, all because this concept has been used in everything from the design of their marketing ideas to how the staff behave whilst at work.

People like to work with companies who have a similar ethic and value to them.

Communicating these can be difficult and everyone has to buy into the company

November 2014 | 47

marketing & Advertising

values in order for them to work.

If you are a business which won’t sell to clients if it is not in their best interests, yet one member of your staff happily sells one product over another because of the commission (despite it being not quite what the client wants), your brand will be damaged. As a company, you have to ensure that policies and procedures are in place so that this doesn’t happen.

Vision For understanding vision, you need to ascertain what you want from the company. Where do you want to be in 1/3/5 years from now? What do you believe the market will be experiencing at the time? How can you transform the market place? Don’t be afraid to dream big or keep it a cottage industry. Regardless, you want your brand to reflect where you want to take it – Changing a brand at a later stage (rejuvenating it), is a costly and time consuming process, so try as best as you can, to pre-empt what is likely to come at you so you get it right the first time around. “Finally, think about how things could change,” Suggests Brash “Would your offer still be relevant and different if a new competitor entered your marketplace? How future-proof is your idea?”

Being clear about where you want to be, means that you will easily navigate the route with which to take you there; all of which tie in nicely to your business plan. The Corporate Vision and Mission Statements are powerful tools that you can use to ensure that the message is spread downwards to all staff.

Behavior Your company’s vision and values can be conveyed to your clients in various ways. Yes, your staff are the obvious people to portray this, so ensure that they use the terminology that you would like, dress appropriately etc. But this can also be portrayed through your marketing, with the language that you use as well as the design of the material. Think

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Ask a few people from your target demographic what is important to them. Don’t make assumptions” John Brash CEO, Brash Brands about whether or not you want your company to feel corporate and business like (banks/lawyers) or personal and friendly (Counselor, Tutor, PR etc.). These will also go a long way to determine the culture and style of the business, which in turn will run down the whole country.

Brash sums this up completely, “Once you have considered these points, you have the makings of a brand positioning strategy, and can start to move on to consider how best to deliver your brand.

You should be clear about what you want to achieve and what you want people to think about you. At this point, it will also be important to tackle the somewhat thorny

issue of naming. Any brand will need a name, but it can be extremely difficult to find one that’s available, so this needs to be considered early on. Think about where the brand is going to be tomorrow, but also where it might go in the future – say, the next five years. It’s important the name and identity are free from legal issues in the sectors and markets into which the brand might realistically stretch.”

He continues, “Then, you can think about how best to create an experience around your brand.

How should customers and other stakeholders experience the brand as well as how you can build relationships and loyalty are two of the key questions to ask here.” n

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adveRtorial

FAR EAST TO MIDDLE EAST

The Far East has lead the way with the most progressive hotel developments and trends in the last decades. 5-star hotels have set global standards both in design and service. New trends are emerging with resorts now incorporating traditional building styles, a trend that is spreading globally, and concepts like the Hostel Box catered for Millennials populating and now setting the latest trend out of the Far East. here is nothing stopping us in the UAE to innovate and take hotel developments to the next level. P&T has been a leader for the hotel development in the Far East and our ambition is to transform Dubai into a global leader in hotel innovation.

When P&T designed the famous Peace Hotel in Shanghai in 1931 it was the first palatial luxury

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hotel along the Bund and transformed Shanghai.

Today it is a National Heritage Building operated

by Fairmont.

Bali Hyatt was the next trendsetting hotel

by P&T built in the 70’s and incorporating traditional building style for the first time in the design of a new resort, a trend that is spread worldwide.

Lately P&T is designing cutting edge city hotels all over the Far East like the Okura Hotel in Bangkok, which is also a LEED Platinum accredited building.

One of our most exciting hotel projects right now is in Dubai, the Viceroy on the Palm, which is under construction and expected to be completed in 2016. The Viceroy will bring a new level of innovative hotel design to Dubai with a ballroom on 13th floor as the top of a huge gateway offering breath taking views up and down the coastline.

Dubai is a mature hotel market with different visitor profiles. Some are here for Dubai’s beaches, shopping, events and conferences, some are transit visitors staying an extra day. The increases of business travellers reflect Dubai’s importance as a preferred regional headquarters location for multinational firms.

With our Dubai experience we see a great opportunity to expand by focusing on the largest

global segments, the ‘Baby Boomers’. These are people with money to spend who are interested in adventures, exploration, and physical activities, who prefer to check in once and move from one location to another - the beach, shopping, golf courses, mountains, etc. - staying with the same hotel group for smooth transition between destinations.

Understanding the different needs in the different visitor segments and growth in Dubai makes clear the tremendous opportunities for new thinking and innovation.

Having a very long track record in the Far East and our engagement in the Middle-East over a decade give us a strong platform from which to be a partner in the development of Dubai as a visionary city.

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Health Insurance and DMCC

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lways looking for ways to enhance an already business-friendly Dubai, the DMCC recently launched an exclusive health insurance solution, allowing companies of all sizes to take advantage of comprehensive benefits and competitive pricing usually only offered to large corporates.

Providing this exclusive health insurance solution for its member companies has been high on the DMCC’s agenda especially as the new Emiratewide health strategy governed by the Dubai Health Authority is set to take effect next month.

The DMCC health insurance solution comes in addition to the mandatory third party liability and workmen’s compensation currently being offered to Free Zone members.

DMCC recognises that employees are the best investment for the future of any company, regardless of size. This collaboration features tailor-made packages for DMCC Free Zone member companies with a number of packages to choose from in order to suit each business.

The DMCC health insurance solution is offering a selection of plans to cater to all Free Zone member companies. Some of the benefits include: • Immediate coverage of current and chronic medical conditions, including those that are preexisting • Full maternity coverage without waiting period • A comprehensive network directory

What is workmen’s compensation insurance?

Third-party liability (also known as public liability) covers legal liability to third parties for accidental bodily injury, or accidental loss/damage to material property caused in connection with the Insured’s Business, within the defined Territorial limits.

“We are pleased to announce that the DMCC Free Zone are able to offer all members whether a startup, SME or large corporation - in collaboration with Insure Direct (Brokers) LLC, a Jardine Lloyd Thompson Group company and Daman, access to an exclusive health insurance solution usually only available to large corporates. There are several packages to choose from with some benefits included such as pre-existing conditions coverage and fixed premiums for all age categories”, said Krysta Fox, Director of Free Zone, DMCC.

For further information, including comprehensive details of what each health insurance solution package entails and contact details, please visit http://www.dmcc.ae/health-insurance

What is third-party liability insurance?

Workmen’s compensation insurance covers legal liability to employees for occupational injury during the course of their employment, within the defined Territorial limits as per Labour Law/Workmen’s Compensation Ordinance. In the UAE, compensation is governed by Chapter 8 of Federal Law No. 1980.

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DMCC named best Free Zone for SMEs in the World

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urther to receiving the national and regional awards ‘fDi Free Zone of the Year for SMEs’ earlier this year, we are proud to announce that the DMCC Free Zone has gone one step further and is now ranked as the Global Free Zone of the Year for SMEs by fDi Magazine, part of the Financial Times group.

The judging panel selected DMCC as the winner based on performance over the past year including elements such as percentage increase in tenants, strong growth and implementation of new incentives giving the Free Zone a competitive edge.

The award is a welcome recognition of DMCC’s unrivalled growth, having started with just 28 member companies in 2003 to over 9,500 startups, SMEs and large corporates thriving in the Free Zone today.

Today seventy per cent of DMCC’s member companies are SMEs, representing every sector ranging from trading, shipping to recruitment, IT to advertising and fashion. The broad spectrum of companies based in the DMCC Free Zone is both diverse and dynamic ranging from MEPCO Gulf – a leading paper and board trader in the Middle East; to NSI Gulf – a fast growing technology consultancy and regional leader in Salesforce implementation; to Bluefish ME, a boutique events production house; and CommsIT, a leading IT and telecom solutions company that was recently ranked in the Top 100 SMEs in Dubai. The DMCC Free Zone is also home large corporations including Alcatel Lucent Middle East and North Africa, LVMH, 7-Eleven, Nutricia Danone and Carrera Y Carrera.

“After triumphing in fDi’s first-ever Free Zone of the Year Awards for the Middle East and North Africa this summer, DMCC has now captured the global prize. We have recognised DMCC as not only the best economic zone in the MENA region for SMEs but also in the world.

While of course DMCC caters to companies of all sizes and its appeal is not restricted solely to smaller companies, our judging panel felt its offering for SMEs is particularly strong and the impressive rate at which new companies are registering in the zone reaffirms that”, said Courtney Fingar, editor-inchief, fDi Magazine.

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DMCC welcomes NATS to the Free Zone corporate family

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ne of the world’s leading air traffic management companies, NATS, has opened its headquarters for the Middle East and North Africa region, with a permanent office in the DMCC Free Zone.

To mark the occasion, a number of its senior executives, including Catherine Mason, Managing Director, NATS Services, and John Swift, Director, NATS Middle East, met with Ahmed Bin Sulayem, Executive Chairman, DMCC, to discuss some of the most significant aviation opportunities and challenges facing the Gulf countries. NATS also outlined its long term commitment to the region and its desire to work in collaboration with local service providers, regulators, airlines and airports, to find appropriate solutions to meet the aviation growth aspirations of the GCC. NATS’ air traffic controllers handled over two million flights carrying 220 million passengers last year, and the business generated revenues of over US$ 1.45 billion. The company currently operates around the world, including in Asia and continental Europe, but it has its roots in the UK, where it provides vital air traffic control services at Heathrow and Gatwick airports, amongst others.

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Ahmed Bin Sulayem, Executive Chairman, DMCC, said:

“At DMCC we focus on providing businesses ranging from start-ups to large corporates with everything they need to trade with confidence in Dubai so they can expand at an unrivalled pace. We welcome NATS to the DMCC corporate family - they are joining a thriving international, awardwinning Free Zone that is also the largest and fastest growing in the UAE with around 9,500 member companies.

“It is encouraging to see large international entities like NATS (that operate in over 30 countries around the world) choosing to join the DMCC Free Zone. This is further testament to Dubai and DMCC’s attractiveness to large corporates as they look to grow and access new markets in a business friendly and competitive environment.”

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November 2014 | 53

technology

Linking into Business

by Kha Marham

Social media can be a huge contributor to a company’s profile and lead generation, but how efficient are the various different social channels in directly driving leads? n a recent study of over 5,000 businesses, internet marketing website HubSpot found that traffic from LinkedIn generated the highest visitor-to-lead conversion rate at 2.74%, almost 3 times higher (277%) than both Twitter (0.69%) and Facebook (0.77%).

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How Can LinkedIn Provide A Business Advantage?

A LinkedIn company page is in a centralised location where millions of LinkedIn members can visit company news, products and services, business opportunities and job openings. You can: ll Tell your company’s story ll Highlight your products and services ll Engage with followers ll Share career opportunities ll Drive word of mouth at scale For the site visitors, the company pages on LinkedIn are a place to: ll Explore companies of interest ll Get the latest company updates and industry news ll Research products and services ll Learn about job opportunities

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The ‘Products and Services’ tab on your company page showcases what your business has to offer. You can upload images, videos and your company website address, and place your offerings in front of a huge business audience which LinkedIn members can view, recommend, or share your products with their network.

The Recruitment Advantage Make your company and your job offerings visible on LinkedIn. If the perfect candidate finds you wonderful; you want your company to appear prominent and impressive to the people you contact once they start looking at you. Create a profile for your company and encourage all of your employees to create profiles that link to it. Strong profiles will pay off as you will look more attractive to prospective employees.

How to Leverage Your Business’ Top-Performing Social Network 1. Post more of the targeted content that’s working Monitor comments, likes, shares, and clicks and be guided by the positive indicators. If you notice people are specifically really enjoying blog posts, webinars, or something else, keep offering it!

2. Find more opportunities to post relevant calls to action - Sprinkle more lead generation opportunities throughout your social media updates and create more ‘teasers’ to encourage organic traffic, interest and response.

3. Don’t take success for granted - It’s easy to get comfortable when something is going well as there are always opportunities to improve. Keep testing, analysing your data, and increasing results.

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technology

Business owners land clients as a direct result of participation in LinkedIn Groups. Others see their groups as a natural extension of their social media marketing efforts. LinkedIn groups are informal communities formed around industries, professions, themes, niche topics, etc. If you find and join the right groups, it’s easy to keep up with news and trends, make connections, ask and answer questions, attract new clients and more.

If you find and join the right groups, it’s easy to keep up with news and trends, make connections, ask and answer questions, attract new clients and more

Conduct Your Search Go to the Groups Directory page and enter search terms related to your goal. Remember to narrow your search; ‘marketing’ generates 41,000 results whereas ‘social-media marketing’ yields around 4,000 results. Be as specific as possible.

Be Discerning You can refine your search by using the check boxes on the left-hand side of the page. One approach is to sift search results by your current connections. For example, you can choose to see only groups that your first or second connections have joined.

Borrow Ideas Searching is useful, but so is following the lead of people you respect. Go to any profile page and check out the groups that person belongs to; chances are one or two match your goals.

Sift Through the Results Search results lists groups in descending order according to the number of members. Under each group is a brief description, which is sometimes helpful.

Join A Few Groups Pick a few groups that appear to meet your goals and then join. You can be a member of up to 50 groups in total, and you can leave a group at any time.

Read recent discussions and click the ‘Members’ link to find out who else is in the group.

If you find heavy hitters or people you respect, that’s a good sign. Keep in mind, some groups are members only; the Manager of the group must accept you before you can participate or view discussions. Members only groups tend to be more focused, but there are plenty of open groups that stay on topic and are spam free.

In the online world, no one likes the person who arrives and takes over a discussion with self-promotion

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Monitor and Reflect on the Quality Monitor, test and evaluate the quality of the discussions or updates.

Are the articles or resource references relevant and valuable?

Are the discussions interesting? Keep in mind you can always leave if your initial impression turns out to be wrong.

Don’t Take Over In the online world, no one likes the person who arrives and takes over a discussion with self-promotion. Watch, listen, and get a feel for how the group operates before gradually starting to participate. Start by responding to questions or topics raised by other people. Get a real feel for the group, and let the group get a feel for your views and discussion style, before you start driving discussions.

Stay Reasonably Active You don’t need to participate every day, but you should be somewhat regular in order to establish your presence and trust in you. This is especially true if you hope to establish yourself as an authority in your field; it’s hard to spark great discussions and answer questions when you’re never there. Take 10-15

minutes every couple of days to respond to questions and comments; before long you will be in a position to generate your own discussion topics and promote your own company/website.

Quality Not Quantity!

Sometimes people will invite you to join a group. Sometimes you’ll stumble across one and think, ‘why not?’

Eventually, you’ll belong to dozens of groups, but remember it is impossible and impractical to participate in a meaningful way in more than a few.

You could start your own group.

If your group becomes popular, you can drive traffic to your website and send free weekly messages to group members, all of whom opted in to receive those messages, giving you valuable data for mailing lists.

You should wait until you really understand how groups operate before you establish one of your own, differentiating it from the thousands of similar ones that exist. This is an opportunity for you to use your own unique insights into your industry, demonstrate your understanding of the market and show why you are a credible business with whom to deal. n

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technology

Telecoms For Your New Office

by Kha Marham

Whether you have a single branch company, multiple premises or are a start-up, every new office needs to orgnise the appropriate I.T. and telecoms infrastructure f you are setting up a new office, or looking to expand your existing premises, it will serve you well to talk to a telecoms advisor about your needs, explaining the functionality you require (including any necessity for future upgrading) and use the glossary below to help really get to grips with this topic.

The number one rule for organising a new telecoms structure is to allow an absolute minimum of 3-4 weeks of preplanning time – this is not an undertaking you should leave until the last minute. You should ideally engage with an expert advisor who can sit down with you at the outset and help you to explain your requirements, in order to give you the best guidance about the most appropriate system for you that also fits in with your budget.

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Asking the Right Questions Ali Afzal, Managing Director from Acentria Solutions says that a good telecoms advisor will be asking you questions such as how many employees you expect to have in 2 years from now and help prompt information from you.

Afzal advises that you tell how advisor how many phone lines you need, whether you need a single

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telephone number, internal extentions and the abililty to transfer calls internally. You should also make a point to discuss your Internet use with the advisor – whether you anticipate your Internet usage will be heavy, in order to determine the speed v cost Internet solution for you. Other considerations are: ll Whether you or your staff travel a lot (to determine the best mobile phones and plan) ll If you have teleconference needs ll Whether you need credit card payment line ll Whether you have data transfer needs (e.g. if you have 5 retail stores, to feed information into your main head office) Beware the False Economies!

A crucially valuable point was made by Monal Shah, Director of Navaida Solutions, based in JLT. She comments, “So many companies are compromising themselves when letting employees use their own mobiles, and simply reimbursing the phone bills incurred. I regularly deal with the fallout in cases where employees leave their employers, go and work for a competitor and all the business calls simply go to the new employee. I’d strongly advise that businesses consult with telecoms experts when developing their

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technology

communications system, as it can often prove a false economy not to do so.”

Understanding the Jargon Telecommunications can be a complex and confusing area, so…enter Mr Aamir Rahman, Marketing Director from Alliance Communication Solutions, to help us navigate through the jargon and better understand the options available.

PABX systems / IP telephony: A private branch exchange (PBX) is also referred to as PABX and EPABX (Private Automatic Branch Exchange and Electronic Private Automatic Branch Exchange).

PBXs make connections among the internal telephones of a business and also connect them to the public switched telephone network, (PSTN) via trunk lines. Because they incorporate telephones, fax machines, modems and more, the general term ‘extension’ is used to refer to any end point on the branch.

Internet telephony refers to communications services —voice, fax, SMS, and/or voice-messaging applications— that are transported via the Internet, rather than the public switched telephone network (PSTN).

VoIP – ‘Voice Over Internet Protocol’ means that your voice is converted to digital data and transported over the Internet.

A network, is a collection of computers and other hardware components, (servers, PABX, Faxes, Printers and other office automation) interconnected by communication channels, usually a wired or wireless network, using a protocol, that allows sharing of resources and information.

Voice Over Internet Protocol’ means that your voice is converted to digital data and transported over the Internet

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In the event of power outage or power fluctuations, uninterrupted power supply (UPS) is required for any organisation, especially where access to information or data is crucial IT managed services: I.T. Managed services is the practice of outsourcing day-to-day IT management responsibilities and is a method for improving operations. This can include outsourcing production, support and lifecycle build/ maintenance activities.

Common I.T. managed services include but are not limited to: ll Applications ll Databases ll Backup ll Data recovery ll Storage ll Security ll Network management ll Management information systems ll Systems management ll Business-to-business integration ll Communication services ll Internet (provided by an Internet service provider) ll Email (provided by an Email service provider) ll Telephone (typically provided by a telephone company) ll TelePresence (provided by a TelePresence Managed Service Provider)

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Videoconferencing (provided by a Video Conference Managed Service Provider or by a Video managed service provider) Voice over Internet Protocol (Provided by a VoIP service provider)

ID Card and Printers: Employee ID cards with memory chip having employee’s data with regard to company and other necessary information.

Access Control: Installation and maintenance of access control for offices, buildings etc.

UPS power solutions: In the event of power outage or power fluctuations, uninterrupted power supply (UPS) is required for any organisation, especially where access to information or data is crucial at any given time. Certain devices or appliances cannot withstand fluctuations in power, which might cause them to shut down. UPS comes in handy to take care of these problems. It has become a vital part of office infrastructure.

AV systems: AV (Audio Visual) systems refer to works with both sound and visual components, which include projectorslide presentations, video-conferencing equipment, television presentations etc.

The modern I.T. and telecommunications infrastructure options have been designed to meet the strategic development and dynamic management changes in the industrial world. n

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insurance

Health Insurance in Dubai Private Medical Insurance is a big thing right now and from the 31st October, all companies with over 1000 employees are legally required to have implemented health insurance schemes (PMI). This is to be rolled out in phases so that all employees are covered in 2016 espite this being a legal requirement, many companies are not prepared for this. It was reported last week that an estimated 30% of companies who should have issued their PMI documents to the authorities have failed to do so. This failure means that fines will be levied and these companies may have issues when renewing visas and licenses.

The Dubai Health Authority (DHA) took the decision to implement a mandatory PMI policy on the basis that all workers should have access to the highest quality healthcare, which is relevant to the needs of the population, whilst also ensuring sufficient funding is place to meet the objectives of both access and quality.

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The Law All nationals and residents of Dubai (including all dependents) must have coverage in place to include emergency cover to a maximum benefit of AED 150,000.

For nationals, there is a Dubai Government funded scheme, whereas residents and their dependents will have to be covered by an Insurer.

This law is statue throughout Dubai including in all free zones.

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Any company policy premiums are the liability of the employer. The employee is not to pay for their own premiums nor is their salary to be reduced in order to enable the funding of the policy. However should there be any deductible to the policy (for example, when the first AED 100 of the claim is excluded from the policy), the employee will be expected to meet this shortfall.

Residents It is the responsibility of the employer to ensure that all residents have PMI cover.

Employers are also eligible for payment of the premiums to ensure that these are met.

Whilst the DHA encourages employers to pay for spouses and dependents, it is ultimately the responsibility of the employee to ensure that their families have the mandatory coverage.

Roll out will occur in three phases: ll Workers at companies employing more than 1000 employees must have coverage in place by end October 2014 ll Workers at companies employing between 1000 and 100 employees must have coverage in place by end July 2015

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All other workers (including domestic staff), spouses and dependents must be covered by end June 2016

Roll out for Nationals Registration under the Government funded scheme will be implemented from 2014. For all nationals that work within the Private Sector, the employer will be liable for cover and therefore will be expected to include them within their PMI policy. Nationals however have the option to opt out and choose the Government Funded programme if they wish.

The choice should be made available to them.

Lower Salary Band Employees (LSB) This consists of those earning a gross monthly salary of AED 4,000 or below. For these employees, the employer must purchase the Essential Benefits Plan which has a minimum level of cover and premiums of between AED 500 and AED 700 in 2014. Currently only Participating Insurers are qualified to sell these policies.

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insurance

The issue and renewal of your employment visa will be conditional upon providing evidence with each visa application or renewal that there is insurance coverage in place for the employees

Cover for LSB can be obtained through an insurer who is not a participating insurer.

However this must be approved by the DHA in the first instance in order to qualify.Other

that meets their Basic Plan. The Government of Dubai suggests a ‘Top Up’ policy as this should cover the shortfall in benefits.

Employees The employer will have access to any PMI policy providing the Insurance Company has a Dubai Health Insurance Permit. Any level of benefits can be obtained however they must meet and/ or exceed the Essential Benefits Plan minimum level of cover.

Ultimately for this section of the workforce, insurers can set any premiums once they have obtained the information on the levels of cover that the company require, and in line with their own policies to stablise the claims fund. Cover cannot be declined though.

Dubai Health Insurance Permit (HIP) It should be noted that only insurance companies that have permission to transact in PMI, by way of a HIP, are allowed to offer policies within Dubai. Should your policy not be with an insurer who has a HIP, this will not be recognised by the Government and could impact your work visas.

Domestic Workers Regardless of nationality, anyone that employs a domestic worker on their sponsorship has to obtain a PMI policy in line with roll out. The payment of the premiums is the responsibility of the sponsor.

Visas With effect from anticipated company roll out, the issue and renewal of your employment visa will be conditional upon providing evidence with each visa application or renewal that there is insurance coverage in place for the employees.

Employees working in Abu Dhabi Health Authority Abu Dhabi (HAAD) states that even if workers hold another emirates visa, they have to have PMI

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New and Existing Policies Providing your existing insurer has a HIP and the benefits exceed the LSB, your existing policies should be permissible. It is best to seek clarification with a Government official or speak with professional on this.

There are several ways you can obtain a policy and/or seek guidance on your existing scheme. You can go directly to insurers who will be able to advise on their own policies.

Banks are also offering policies.

Alternatively you can speak with an Insurance/Broker/Intermediary/ Consultant. They will be able to give advice across a whole realm of policies. As advised in our article of last month, ensure that you have a full report, with a full break down of the premiums and benefits as well as guidance as to what you have requested and a recommendation

from them. By going to an advisor/ bank you will be paying for the advice either by way of commissions from the premiums or an upfront fee, so make sure you know what and how you are paying to avoid any unknown costs.

The Future The Government of Dubai intends to link PMI cover to the Emirates Identity Authority (EIDA) via the Persons Register that the DHA will hold on their eClaimslink portal.

This portal will be kept up to date by the insurer. The aim of this link is that an Emirates ID card will also act as a Health Insurance Card, and the claimant will be required to present this to ascertain that they are eligible for the cover that they seek.

As the implementation of the mandate proceeds over the coming two years it will not be possible for visas to be issued without evidence held on DHA electronic records that the employee is insured. This means that it is essential that employers report to their insurance company data relating to their existing employees and for new employees as they join. Insurers will upload this data on a regular basis to the “Person Register” of insured members on DHA’s eClaimslink portal, which is the hub for all health insurance related systems for Dubai. If this data is kept complete and up to date you should have no trouble in acquiring visas for new employees or renewing visas for existing employees. Remember, the responsibility is yours. n

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property

Virtual v Actual – Office Space Finding the right office space is often a very difficult process for any business, but startups and businesses opening in the region, this can be especially tricky. Do you go for a virtual office or an actual office? What should you be thinking of to determine which is best? The Business Insight Team look far and wide to get the answers for you

oming to the UAE is often a tricky time, but navigating the stamping, queuing and form filling that is required to open an office here is time consuming.

Then you have the options of managed or an office of your own, not to mention the size that you require for your office; Will you have all your staff in the office or are you comfortable with staff working from home as this will lower your rental costs?

The questions are plentiful and frequent.

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Business Plan New companies often mean smaller companies and the first mistake of an SME manager is to not consider the impact of time on their business.

What does your business plan say about company growth? When are you likely to need more space for new staff, equipment etc.?

Think carefully about what your business plan says. If you believe that you will double turnover and therefore

staff within the next two years, take this into account when looking at offices. Initially, you can save yourself a lot of money in the UAE by locking in your lease for several years, but will this enable you to grow? If you lock yourself into a lease, there will be penalties to pay for breaking the lease early. Do you know what these penalties are? Can you afford these?

Alternatively, should you keep your lease to a minimum time frame and therefore have the option to opt out sooner (and with less financial penalties) should you grow more quickly than anticipated?

Virtual An alternative to this conundrum is for companies to go virtual.

Globally, this is a common practice with leading companies have realised that having employees work from their own locations, they can keep their overheads down to a minimum.

And why should your emoloyee’s have to be in the office? With a little investment into modern technology, employees are always contactable – be it by cellphone, email and internet.

With file sharing facilities such as dropbox and we transfer, companies can have staff working when they return home to visit family, or in the evening after they have put the kids

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property

Andrew Elliot’s Top Tips on finding the right office 1.

2.

“Clients who are interested in virtual offices tend to be clients who are looking for a business licence and may not need an office to operate from. Or, they own a company that does not necessarily need to be based in Dubai with staff but needs a trade licence to conduct business” Andrew Elliot Senior consultant, better homes

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to bed, as well as during the day either in the office or the coffee shop in their local mall, all with only providing the basic equipment and no other over heads.

Nowadays, businesses exist predominantly in cyber space – So why not utilise this? By providing your staff with a laptop and phone (or allowing them to use their own if you are a company which does BYOD), you can visualise how easy it would be for startups to significantly reduce their costs. You also wouldn’t have to pay the additional insurance related costs for the staff to be in the office; Employers Liability Insurance; Contents Insurance etc. “Clients who are interested in virtual offices tend to be clients who are looking for a business licence and may not need an office to operate from. Or, they own a company that does not

A licence issued by a free zone means that any commercial space you lease must be in that specific area

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necessarily need to be based in Dubai with staff but needs a trade licence to conduct business in Dubai as well as limited access to a desk space or meeting rooms,” says Andrew Elliot, Senior Commercial Sales and Leasing Consultant of Better Homes.

Skype enables businesses to conduct meeting virtually with no costs whilst the flexibility enables you to ensure staff happiness. On top of this, you also are not restricted from where you hire your staff and have a greater pool of potential employees to choose from.

Actual Offices In the UAE, all businesses that are licensed to a free zone have to have an office presence within that free zone of some description. This can be in the form of sharing an office or having your own office outright and is no bad thing really.

Let’s be honest, having an actual office will give a prestige that you may not have otherwise, together with the possibility of conference/meeting rooms, professional phone-answering and a nice reception all help build your company brand. n

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Clients looking at serviced and virtual offices tend to be those starting companies who want to keep costs down. If that describes you, either can be a good option.

Check what facilities are going to be available such as having a base to organise visas, receptionist, printing and scanning, meeting rooms and administrators to help with paperwork.

Understand what licence you are obtaining and from which authority as you will need a different licence depending on where your business is based (for example, a licence issued by a free zone means that any commercial space you lease must be in that specific area).

Know your required size and visa requirements as the number of visas you can be issued with depends on the size of office you have.

Car parking is a big issue in most areas and this is making proximity to Metro stations more desirable.

Know your fit-out requirements whether you require shell and core or a fitted office.

Look at the surrounding facilities, ie supermarkets and other shops, coffee shops and restaurants.

Most buildings in Dubai come with high speed internet and telecommunications. Check whether they are in place.

Look at common area maintenance and make sure it is of a good standard.

If there are issues in the common areas you need to think about what the reliability of elevators and fire systems would be like.

Most virtual offices will not provide you office or desk space, so you need to make sure you have some kind of space to work in at home or elsewhere. Or if you really need desk space, a virtual office is probably not for you.

View a virtual office as a starting point towards renting or buying your own office at some point. If you have the finances and are certain of future success, it may be better to rent a serviced office.

Shop around different providers to compare costs and decide what suits you best before you sign up.

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Festive Party Venues

The Address Montgomerie Dubai As the year draws to a close, it’s time to take every celebration to the next level. Join the city’s trendsetters at the best parties in town within some of the city’s most glamorous venues.

Make the most of your yearend celebrations as you mingle with the city’s elite at the most sophisticated soirées. Spoil family and friends, and indulge colleagues and VIPs with an unforgettable celebration. Our catering team has created a festive wonderland complete with shimmering Christmas tree, elegant gold place-settings and relaxed seasonal music. Whether it’s a cocktail party, champagne reception, or gala dinner, you and your guests will experience sumptuous hospitality at one of the world’s most striking venues.

Nestled in the heart of Emirates Hills, this luxurious haven will transform into a festive wonderland, full of events and activities that will steal the hearts of the city’s rich and famous.

From sensational parties across different venues to fine dining experiences, luscious barbecues,

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incredible meals, music, dancing and much more. The Address Montgomerie Dubai is where you will find everything that your heart desires this festive season.

Festive Cocktail Party Chic and cheerful Includes gourmet festive canapés, cocktails and soft drinks, your own cosy lounge and dance floor.

From AED 225 per person.

Festive dinner buffet or set menu Celebrate in seasonal style Includes a welcome mocktail, festive or international menu, carvery roast or live cooking stations, free flowing soft beverages throughout the evening and a stunning round table arrangement, tailored to your party size and theme for only AED 385 per person.

With 3 hours of flowing house beverages and season table setup from AED 525.

Terms and conditions apply.

For reservations or inquiries please contact: T: + 971 4 363 1204 or email E: events.tamd@theaddress.com

Kempinski Hotel & Residences Palm Jumeirah New Year’s Eve Garden Gala with the Gipsy Kings featuring Max Baliardo Celebrate New Year 2015 in Dubai, indulge in a truly electric carnivalstyle atmosphere on our stunning lawns set against the backdrop of the private beach, Palm Jumeirah lagoon and the twinkling Dubai skyline.

This New Year’s Eve, join us under the stars and feast on a sumptuous gala buffet dinner and a delicious seafood bar paired with selected premium beverages flowing throughout the night.

Enjoy an array of entertainment, including an acrobatic show, DJ, live contemporary band, magicians and walk-around entertainers in the dedicated children’s’ area – and to top off the night, flown in by our key sponsor Air France-KLM

to perform just for you, the famous celebrity group the GIPSY KINGS featuring Max Baliardo will keep you on your toes till the early hours of the morning! With a prime spot on Palm Jumeirah, delight in the decadent fireworks and bring in your New Year with a bang!

Our exclusive Garden Gala includes: ll ll

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Gala buffet dinner with selected unlimited premium beverages New Year’s Day buffet brunch at Brunello Restaurant & Terrace (1st January 2015, 12pm - 4pm) Dedicated children’s area at the Garden Gala with exclusive children’s entertainment

All guests staying through the 31st December are required to book minimum of 5 nights. On December 31st guests will additionally be charged for Garden Gala at AED 3,300 per adult and AED 1,650 for Children between 6-12 years of age.

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Give your festive season a splash of glamour and sparkle Whether it’s a celebration with friends, an end of year corporate event, the ultimate family feast or a New Years’ Eve party, the stylish restaurants and luxurious cruises by Dubai Marina Yacht Club assure the best experiences this holiday season.

Celebrate Christmas in style at the Grand Millennium Dubai hotel in TECOM CHRISTMAS EVE, 24TH DECEMBER PAN-ASIAN FESTIVE FUSION AT TOSHI SIGNATURE RESTAURANT Tantalize your taste buds with a unique fusion of five cuisines especially prepared for this joyful occasion along with a panoramic view of the city.

CHRISTMAS DAY, 25TH DECEMBER INTERNATIONAL SEAFOOD CHRISTMAS BUFFET AT THE ATRIUM RESTAURANT Savour the moment of the joyous day with an international combination lunch. Relish our most scrumptious platters from live cooking stations while Santa entertains the little ones.

Prices starting form AED 225 per person and include live entertainment NEW YEAR’S EVE, 31ST DECEMBER AL THURAYA BALLROOM Begin 2015 in style at Al Thuraya ballroom in Grand Millennium Dubai.

Make your New Year’s Eve celebration memorable with an international buffet featuring a variety

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of signature dishes and desserts, overlooking the panoramic city view where you can watch the stunning fireworks. Starting from 699 dirhams per person. Live entertainment available Book your table before 20th December for 10 people or more and enjoy a 15% discount.

For reservation or further information please call 800 (GMDH) 4634 or e-mail fbreservations.gmhd@ millenniumhotel.com Merry Aromas at Jasmine Spa (December 1st- January 1st) Treat yourself this festive season at Jasmine Spa in Grand Millennium Dubai with five treatments.

Your two – hour journey includes a relaxing massage, body exfoliation, a cleansing facial, fruit mask and foot reflexology.

Situated in the heart of ‘new Dubai’, Dubai Marina Yacht Club offers some of the most spectacular views during the day and at night. Celebrate against the dazzling backdrop of shimmering skyscrapers and super yachts and treat yourself and loved ones to a memorable experience whilst you create new ones as you enjoy an assortment of exquisite culinary choices.

The Athena Charter Yacht offers a novel alternative to festive celebrations. Enjoy a two or four-hour cruise with bubbly on arrival and house vintages, as well as canapés, beverages and even dinner at Aquara or 25 55 Café & Bistro to make it a truly special evening.

What better way to ring in the New Year than on board the Athena Charter Yacht!

Experience an ideal setting for social gatherings framed by the magnificent sights of the Arabian Gulf. Make it a night to remember as you spend time with those closest to you as you sail into 2015.

Make this season truly special for your events with the cocktail receptions, dinners and party packages that are sure to add that extra sparkle and get your guests in the holiday spirit.

For an unparalleled experience on water, treat your guests to a bubbly reception on board our luxury yacht and see Dubai’s iconic landmarks from a unique perspective.

Below are the spectacular festive offers available:

Festive Parties at 25 55 Café Bistro Date: Throughout December 2014 Time: 12:30pm to 10:30pm Price: AED 125 per person including a 2-course set menu and soft beverages.

Festive Dinners at Aquara Date: Throughout December Time: 6:30pm to 10:30pm Price: AED 295 per person, including a 4-course set menu and soft beverages Plus many more festive offers, pick up a copy of the Dubai Marina Yacht Club Festive Brochure to find out more or contact +9714 362 7900 or email info@ dubaimarinayachtclub.com Exclusive Venues for Private Corporate Parties Al Dana and The Chart Lounge Date: Throughout December 2014 Price: AED 295 per person, inclusive of soft beverages AED 525 per person, inclusive of house beverages AED 325 per person, beverages and canapés *For reservations over 80 guests, DJ is included Festive Cruises - Luxury Yacht Charter Date: Throughout December 2014 Price: AED 8,000 for a group of up to10, including 2-hour cruise and festive dinner at 25°55° Café Bistro AED 10,000 for a group of up to 10, including 2-hour cruise and festive dinner at Aquara AED 10,000 for a group of up to 10, including 4-hour cruise and free-flowing canapés and beverages To find out more about exclusive private corporate festive parties email events@dubaimarinayachtclub.com or call +9714 362 7932

All for just 599 dirhams.

For reservation or further information please call 800 (GMDH) 4634 or e-mail spa.gmhdmillenniumhotels. com

November 2014 | 63

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The X-Factor

On October 15th, the Business Insight team were lucky enough to be invited to the CXO Alliance Breakfast Conference, titled the ‘CXO’s Role in Dubai and the UAE’s Growth and Opportunities’ which was held in Almas Tower, JLT

he event was made up of C Level Managers who had come to listen to a variety of talkers including Vishal Tikku, CEO Kraft Foods, Masoud Golshani VP HR Aujan Coca Cola, as well as Business Insight’s resident lawyer Ludmila Yamalova, who sat on the panel discussion. We talk to Jaideep Singh of the CXO Alliance to find out more.

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What does the X in CXO Alliance stand for?

This is a forum or C-level executives/senior management.

‘X’ stands the C-level executives of a particular field; E (CEO), F (CFO), M(CMO), HR(CHRO),O(COO),I (CIO) etc.

What are the benefits of the CXO Alliance?

There is a big vacuum in this part of the world as post our work, we hardly get to meet ‘people who matter’. We only start looking for them when we are in ‘distress’ or dire need. Quite a few of us stop ‘learning’ further after our education. Hardly any time is spent on training and developing ourselves.

Also we keep doing business in ‘Silos’. Imagine the latent potential which will be unleashed if businesses network!

They immediately start finding synergies how to increase their trade with counterparts. We aim to make this possible through networking events with breakout sessions and online interactions as well as an annual awards ceremony.

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Membership is offered to delegates who are aware that ‘one interaction’ leads to nowhere and that relationships are built over time.

What was the reason you set up the CXO Alliance?

Conferences are common here. However the conferences are organiser and profit driven, where delegates hardly have any say, and meeting/knowledge sharing and/or networking is left to ‘chance’. We found that there was not hardly any scope for professional development as there was no dedicated forum for C-level interaction and knowledge exchange.

In previous magazine editions we have talked about the power of networking. Can you please give us the reasons why networking is so vital for all businesses?

1. Generation of referrals/Increased business - Referrals that you get through networking are normally high quality and most of the time are even pre-qualified for you. You can then follow up on these referrals/leads and turn them into clients.

2. Opportunities - With a motivated group of business owners comes an abundance of opportunities. Opportunities like joint ventures, client leads, partnerships, speaking and writing opportunities, business or asset sales… The list goes on.

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Also we keep doing business in ‘Silos’.

Imagine the latent potential which will be unleashed if businesses network!”

Jaideep Singh CEO, CXO Alliance

3.

4.

5.

6.

7.

8.

Connections - “It’s not WHAT you know, but WHO you know”. This is so true in business. If you want a really successful business, then you need to have a great source of relevant connections in your network that you can call on when you need them.

Advice - Having like-minded business owners to talk to also gives you the opportunity to get advice from them on all sorts of things related to your business or even your personal life on how to obtain that important work-life balance.

Raising your profile - Being visible and getting noticed is a big benefit of networking. Make sure you regularly attend business and social events that will help to get your face known.

Positive Influence - The people that you hang around with and talk to do influence who you are and what you do, so it is important to be surrounding yourself with positive, uplifting people that help you to grow and thrive as a business owner.

Networking is great for this, as business owners that are using networking, are usually the people that really go for it.

Increased confidence - By regularly networking, your confidence will increase. This is really important as a business owner, because your business growth is very dependent on talking to people and making connections.

Satisfaction from helping others - I really love helping other people, and networking is a fantastic way that allows

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9.

me to do this easily. Networking is full of business owners that have problems or issues within their business that need solving, and there is great satisfaction from helping someone to solve a problem they have and get a fantastic result from it.

Friendship - Lastly, this one is more personal related rather than business related, but is a big benefit none-the-less. Many friendships form as a result of networking because you meet and help each other regularly, so naturally strong friendships tend to form.

What do you believe makes a networking event stand out from the rest?

A networking event should benefit all who are part of it. It should have

speakers of a good profile who can share their knowledge and add value to the delegates. Also the delegates should be of the right profile so that they find value meeting each other.

The venue and execution also play an important role in making the event stand out from the rest.

What are your tips to successful networking?

Networking is not taught in colleges and is needed at every stage of life. A very important tip is that one should network when he does not need to. When you need something and then you start networking, you have hardly any ‘takers’. An event which is highly influential, attracts more of ‘heavy weights’ and is better to attend as one would hardly get any chance to meet them in normal course of business. n

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BECOME A BETTER

communicator We all know communication is key to business. You need to be able communicate why clients should take your products, what you need from your team and colleagues, what you want to achieve and key milestones etc. All of this requires verbal, or written words, and often both. It is vital therefore that communication used is clear, and that all of our communication is the best it can be

Your calls, meetings and emails should all be professional, and just because you are comfortable with cursing, others may not be

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hen you listen to business leaders speaking; Steve Jobs, Carlos Ghosn etc. as well as the worlds past and present political leaders; HH Skeikh Mohammed Bin Rashid Al Maktoum, President Obama etc. you can see and hear their passion. We all believe in them and what they say. These are the great communicators. Now I am not saying you instantly have to take on the world stage, far from it, but as the leader of your own empire, you have to get everyone in it and around it to believe in you and follow you in the same way… and you can only achieve this with communication.

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So who has had communication training? I would be willing to attest here in Dubai a very small percentage of people. In this article, we look at various ways that you can improve.

Know Your Audience It’s important that you know your audience.

For example, understand what tasks your team is working on. Do they have a point of reference on the topic you need to discuss? If they don’t have this, it is likely that more explanation will be required and it may take longer to reply. Do they ask questions? If not, have they really understood what you are telling them? Ask them questions on what you have told them to ensure they fully understand.

Listen It may be obvious, but who really listens and absorbs what is said before speaking up? Most of us try to butt in or think of our response first. How can we know what they are really saying, if we have not listened to them in the first instance?

Master Body Language This is such a big subject that we will look at this in greater detail in December’s issue.

However, remember to consider both your own body language, and that of the person you are talking with. Observe how they act when they talk. Does the body language of your co-worker indicate the opposite to what is being said..?

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Understand The Circumstances Making assumptions could lead to wasted time and you may unwittingly look foolish; this means understanding the goal of the person on the other end of the conversation. What are they trying to accomplish, and what do they need from you? Ask questions so you can understand how best to achieve what you’re trying to accomplish.

Consider Communication Preference People like to communicate in different ways. Some may think a text is OK for friends, but is it professional to respond to a business matter by text? The same can be said with email; globally email is not considered as a reliable communication tool to the same extent that it is here in the UAE. Respect the person you’re trying to contact, and use the method they appear to prefer. If you’ve called a client several times and always get their voicemail, but conversely they are always quick to respond to email, switch to email instead.

Tonality Remember that email where you thought someone was upset with you, but when you spoke to them they weren’t? Well this is the problem with email and social media. What you mean to be a joke could come off as being angry. Leave your email open for just a couple of minutes after you have written it before sending it, and re-read through it to make sure that the content, and tone is correct. Never reply when you are angry. Yes create a response, but reread it when you have calmed down and then make a decision whether to send the email or not. Ensure your language is clear. If you are angry, try to meet with the person instead.

Always Remember Business Etiquette It is great that you get along with your colleagues, but remember that you are work colleagues at work. Your calls, meetings and emails should all be professional, and just because you are comfortable with cursing, others may not be. Don’t forget that!

What Outcome?

If you know the answer to this then you can sway the conversation in that direction before you even begin. For example, if you want a colleague to work in a certain way, find out how they would do it, so you can formulate the points of the argument against it.

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Consider both your own body language, and that of the person you are talking with

Spell Check Is There For A Reason Always proofread anything you type and ensure the spelling is correct; be it an email, tweet, or a letter. If you are worried that you may not see them, have some else check it for you. A sloppy email can damage your reputation.

Don’t Waffle!

No one likes a waffler. All people think about when wafflers talk is how much they are talking and completely miss what they are saying.

Keep Criticism Constructive When you manage others make sure you keep your own emotions out of any conversation you have them.

Stick only to the facts, and make sure they understand that you are just giving feedback. Alternatively reinforce a job well done and find ways to add in tips for improvement.

Be Positive Whenever possible keep your comments and question upbeat. Be sure to give encouragement and praise. The last thing you want is to put your listener on the defensive.

Paraphrase Paraphrasing points that people are saying to you illustrates that you are listening to them. It will also give both

parties the chance of correction if there is any confusion over the points. Ask for feedback and if in a meeting, summarise the main points so everyone knows where they stand.

Get To Know Them Ask about your colleagues outside lives and try to interact with them on a personal level yet remembering your boundaries, this will help with the trust which in turn makes you believable when you speak as an authority.

As with all skills, effective communication takes practice. So start now and keep reenforcing these skills, even when you think you have mastered it! n

Top 10 Tips 1.

2.

Listen carefully/ask questions.

Set expectations on the conversation, and paraphrase at the end.

3. Know when to listen and when to talk.

4. Know what you want to achieve.

5. Update your team regularly.

6. Learn to communicate with others in their preferred method of communication.

7. Be a storyteller.

8. Assume nothing.

9. Be consistent and transparent.

10. Practice, practice, practice.

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Coping with CEO stress

Russell Hemmings

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Sitting at the top of any business is rarely the most comfortable seat in the house. In fact, success in business by implication, means one thing – you’ve got a lot on your plate. Juggling competing priorities, making tough decisions and building and maintaining a positive workforce that can drive the company forward, all requires time, energy, creativity and a certain amount of detachment. That delicate emotional balancing act of having to make robust strategic decisions, whilst shouldering the responsibility not just for the economic and emotional welfare of others, but also for the ultimate success of your own business vision can, over time, take its toll on your body and mind.

And it’s that old enemy stress, if left to systemically take root, which will cause things to unravel very swiftly indeed. Stress closes down the mind, cuts off those creative juices which are necessary to the cocktail of CEO success and can even lead to the wrong decisions being made

f course the role of CEO is inevitably going to come with a stress price tag attached. It’s going to be part of your every day when you’re working at such a high level. It’s likely you wouldn’t be where you are today if you didn’t have the resilience and skills to deal with it already built in to your psychological makeup. Getting to the top is stressful, but staying there is a whole different ball game. How you respond to that consistency of pressure that pervades todays’ business environment is what can make the difference between thriving and buckling.

Russell Hemmings, internationally renowned Life Coach and Cognitive Behavioural Hypnotherapist, sees this problem amongst his highflying clients with increasing regularity, “I work with the top names in business and have really gained an insight into the damaging effect stress can have if you don’t take action to protect yourself effectively,” says Russell. “These people are ‘on stage’ every day for long periods of time. They are looked to for answers and for accountability. They often feel isolated from their workforce; they have to be in order to shoulder the burden of management.

O

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When they finally end up at my door, stress has often manifested itself in anxiety attacks, health problems and a general feeling of depression. This results in the belief that they can’t take any more. My opening gambit every time is that it really doesn’t have to be that way. You can be successful and successfully manage stress.

Just like in business, successful stress management requires a long-term strategy.”

Hemmings approaches the problem with the language of business, “I think the people I deal with, really understand it when I approach the problem as they would. The difference is they have lost that objectivity when it comes to themselves. When dealing with stress, it’s vital to gain a 360-degree overview of your life as a whole.

Really look at all areas and see which ones are out of balance. The interconnectedness of life means that when one or two things are off, it creates a ripple affect into other parts. Once you’ve identified where the problem lies, then a solution can always be found.”

So how do you go about managing stress on a daily basis, before it gains such momentum that it becomes overwhelming?

“It’s important to be active about it. Many of the CEO’s I work with, their time is planned out for them by their PA’s and it can end up that they literally run between meetings and phone calls all day,

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without a moment to draw breath. The first strategy I give them is to get hold of their own diary. I ask them to build time for themselves into their schedule, starting small because ‘me’ time is so unfamiliar to them. I teach them meditation skills, including self-hypnosis, which allows them to declutter their minds and achieve that pure relaxation which helps them to recharge and think clearly. Once they have become practiced at this, they are often the types of disciplined people that will stick to it routinely and are usually surprised at just how good it makes them feel and how little time it takes.”

Exercise is another approach that Hemmings advocates. “It’s one of the best ways to relieve stress, but is so often neglected. It’s a mood lifter, it’s combats lethargy and it keeps you in that healthy place, which is essential when you are in a high-pressure job. It helps you sleep better and make better choices about the food you eat. The knock-on effects are enormous. Even if you’re coming from a starting point of zero exercise, building in an initial five to ten minutes of exercise will have an immediate beneficial effect on how you deal with stress.”

Likewise, prioritising the other important things in life, like spending quality time with the family or relaxing with friends is also something which Hemmings puts high on the list when it comes to fending off the effects of stress. “Laughter really is the best medicine, but so often pressure at work erodes that time and this opportunity for relaxation gets squeezed. Put away your mobile phone, turn off your emails and switch to radio silence.

The things you have to deal with will still be there when you turn them back on, but giving yourself a couple of hours with the kids or kicking back with friends will give

you that natural space. These things aren’t self-indulgent, they’re a necessity if you want to stay creative and productive, because strong human relationships are the most nourishing things in our lives.”

And what about when you’re in the thick of it? Is there anything you can do to minimise stress when you feel those levels rising? “I know that for me always having a plan B, C or even D is important,” says Hemmings. “It gives you the flexibility to roll with the punches and always have somewhere else to go with the problem. It’s enormously comforting to know you’ve got other avenues to go down.

This coupled with building a resilient, happy and motivated workforce who will willingly share the burden is vital. Trying to control everything is both impossible and exhausting. Creating in others the abilities and skills needed to keep things running when you relinquish the reins temporarily, will give you that long-term peace of mind that allows you to take a break without worrying things are ok.”

Finally, taking a step back if you feel you’re close to the edge is fundamental to prevent yourself from toppling over advises Hemmings, “One day away from the office can help you to regain some perspective and is far more preferable to weeks and weeks away recovering from a breakdown. If you feel yourself becoming overwhelmed, don’t be ashamed to ask for help, because the right kind of support is so important when it comes to dealing with stress head on.

Ignoring it won’t make it go away. The very act of taking action will bring it’s own relief and empower you to make those changes.” n

Executives are usually acutely aware that any sign of weakness could be seized upon by employees or shareholders, causing a possible destabilising affect, which could send shockwaves across the business” RUSSELL HEMMINGS Life Coach & cognative Behavioral hypnotist

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FlipFlop media is one of the fastest growing publishing houses in the UAE, focusing on offering unique online and print solutions.

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Presents

EMBASSY OF THE RUSSIAN FEDERATION UAE

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As you have probably noticed from the cover, Business Insight Magazine is very excited to announce that we are now Supported by the Consulate General of the Russian Federation in Dubai & Northern Emirates. Russia and the UAE see each other as faithful and promising partners which became possible thanks to the mutual trust not only between their business and economic circles but also on the level of political leadership of the Russian Federation and the United Arab Emirates. Russian-Emirati relations today are not a collection of separate projects or successful deals, but are the product of a stable and mutually beneficial trend that is fully supported by the two governments.

Therefore, Business Insight leapt at the chance of interviewing the Ambassador of the Russian Federation to the United Arab Emirates, H.E. Alexander Efimov

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RUSSIAN

INTERVIEW: Alexander Efimov

Ambassador of the Russian Federation to the united arab emirates

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fimov, a competitive Tennis player credits his athletic experience with nurturing his determination for victory, “Which in my diplomatic job transformed into the determination to seek and achieve certain practical results serving the interests of my country and strengthening its bonds with other friendly states – with the UAE in my case.”

“Any kind of sport also breeds an ability to “take the hit”, to wait until “the second wind kicks” at the right moment in addition to stamina and patience. In our job, these traits are much-in-demand. Generally speaking even professional sportsmen do not know such mental and physical stress that diplomats have to experience sometimes,” he says with a smile.

It is this attitude that has enabled the Ambassador to significantly strengthen ties between Russia and the UAE, whilst also ensuring that Russian citizens who work and reside here, have the full backing and assistance of the Russian Government, “Serving the interests of Russian citizens abroad is one of the central tasks of our embassies around the world including of course, the one in the Emirates. All the components are equally important; political, economic, legal, cultural, humanitarian. These are our guidelines and the main purpose is to make all our compatriots feel themselves as one big family under reliable protection by the Russian state,” Efimov explains.

Currently, relations between Russia and the UAE are on the rise, “Our positions on a wide range of regional and international issues are close or coincide.

Both countries are determined to consistently develop and diversify the bilateral ties,” says Efimov. He continues, “I would also like to note that the RussianEmirati cooperation is not affected by fluctuations of the global environment and are steadily gaining momentum; even in light of the attempts to isolate Russia on the world stage. During his recent visit to Moscow, Foreign Minister of the UAE H.H. Sheikh Abdullah Al Nahyan made it clear that the decisions of third countries should not affect the development of the bilateral relations between our states. So, no sanctions can ever undermine the Russian-Emirati cooperation.

Rather, they create new opportunities.”

“Contacts with the UAE on the top level are held regularly and are a clear demonstration of the level of mutual trust and understanding that has developed between the leadership of our countries.” Efimov elaborates, “The most recent example was the visit to Russia by the Crown Prince of Abu Dhabi H.H. Sheikh Mohammed Al Nahyan and his meeting with the President of the Russian Federation H.E. Vladimir Putin in the resort city of Sochi in October.”

So with international relations firmly in place, what are other priorities for you moving forward?

“One of the key priorities in this instance, is the constant development of the Russian-Emirati cooperation in the material sphere. The connections between the business communities of our countries play an important role, and our Embassy (within its authority), is trying to assist their establishment and strengthening. Next year we will

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RUSSIAN

establish the Trade Representation of the Russian Federation in the UAE in Abu Dhabi to further increase our potential in this area.”

Trade turnover between Russia and the UAE hit the record of US $2.5bn in 2013.

Exports from Russia to the UAE amounted to US$ 2.09bn whilst imports from the Emirates at the same time reached US $423.298mil. Why do you think the UAE has become a convenient place for Russians to open their own business?

“UAE has become a very attractive place for Russians; both as tourists and for entrepreneurs.

It is clear that the reason isn’t only the sun, sea and the Arabian hospitality. It is much more important that the UAE has maintained a favorable social climate, with opportunities for recreation, work and business, whilst also granting a sense of security, stability, confidence in the future.”

“As for our country, it is impossible not to notice that the Emiratis themselves want Russian tourists to come here,” Efimov explains. “Many travel agencies, hotels and shops are oriented to work precisely with our people. In various parts of the UAE one can find Russian speaking staff or media.

Even UAE airlines are gradually increasing the number of direct flights to Russian cities in different price categories. The results are plain to see, for Russian’s the UAE features in the top ten most popular tourists destinations.

Last year for example, the country was visited by more than 750,000 Russians.”

This is replicated within the business environment too. “There are no problems in economic relations between our countries,” Efimov proudly explains, “Russian business is welcomed here. About 40 Russian companies already have their offices in the UAE, around 400 joint ventures are established here.”

Investment co-operation is one of the central aspects of economic relations between Russia and the UAE. By 2013, it reached a total volume of about US $18bn. “We already have several examples of successful bilateral projects.

For example, the partnership with Gulftainer in the development of port facilities in Ust-Luga (Leningrad Region), investment support of the Olympic program in Sochi by Invest AD, and further investment from Emirati companies in other infrastructure projects.”

Broader prospects for our countries were opened after two intergovernmental agreements; on the taxation of investment income and on the promotion and reciprocal protection of investments which entered into force in 2013.

A number of projects have been already agreed upon which will be implemented within the framework of the investment fund worth of US $2bn dollars created in 2013 by Russian Direct Investment Fund (RDIF) and “Mubadala”.

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In particular, “Mubadala” will participate in construction of the Central ring road in Russia, “intelligent” electricity grids, installation of broadband Internet access in sparsely populated areas of the country.

“Work is ongoing to choose specific areas to use the funds (up to US $5bn) that have been pledged by Abu Dhabi Department of Finance (DOF) for joint infrastructure projects in Russia, and in third countries according to agreement between DOF and the RDIF reached in 2013,” says Efimov.

Intergovernmental Russian-Emirati Commission on Trade, Economic and Technical Cooperation was established in 1994 and since then has proved itself to be an important mechanism for the promotion of bilateral relations in the material sphere. The Russian side of the Commission is headed by the Minister of Industry and Trade of the Russian Federation H.E. Dmitry Manturov and Emirati side, by Foreign Minister H.H. Abdulla Al Nahyan, which also indicates the importance that is attached by the UAE to the relations with Russia “The format of the Intergovernmental Commission is primarily valued in Moscow as an opportunity to directly contact with representatives of a number of UAE ministries and agencies alongside with business community, to conduct a comprehensive analysis of the bilateral trade and economic relations, finalise pending issues, outline plans for further work in all the important areas.

Every such event including the 4th session of the Intergovernmental Commission held in Moscow in October, gives significant impulse for further expansion and deepening of the Russian-Emirati relations.”

“Bilateral relations in the humanitarian sphere harmonically complement other tracks of bilateral cooperation with the UAE. There is a genuine interest here towards our country and its rich potential in this area,” he says. This is clearly visible with the example of the Russian International School in Dubai which opened in 1996 and conducts classes in line with the Russian curriculum. But this isn’t all, “There are also branches of the Moscow Financial and Industrial University ‘Synergy’ and the St. Petersburg State University of Economics.

Another step forward in this direction was the signing of the Memorandum of Understanding between the Ministry of Education and Science of Russia and the Ministry of Higher Education and Scientific Research of the UAE on the sidelines of the 4th meeting of the Intergovernmental Commission in Moscow.”

“Russian artists, actors, musicians and dancers visit UAE on the regular basis. They not only hold concerts and arrange other cultural events for Russian compatriots living here,

but also take part in international festivals and competitions organised by the UAE. People here are also familiar with the Russian cinema.

Russian movies are not only successfully shown but also often received prestigious awards at film festivals held in the UAE,” says Efimov. “This year, for example the movie “Leviathan” won in the narrative film competition of Abu Dhabi Film Festival while the movie “Test” received its Special Jury Award.”

Russian culture and Russian language are of paramount importance for the consolidation of Russian compatriots in the UAE and all over the globe. They are the cornerstone of the big Russian World.

As far as foreigners, including Emiratis and UAE residents are concerned, their acquaintance with the centuries-long traditions, science, literature, musical and artistic heritage is a chance to better understand our country, its role in history and the modern world.

“The Russian leadership, Ministry of Foreign Affairs keep a close eye on the situation with the Russian language abroad, including the UAE. To everyone’s satisfaction Russian speech in this seemingly far-off country without exaggeration has become a harmonious element of local cultural environment. Such a success was possible mostly thanks to our numerous and efficient expat community, its efforts to develop Russian education, media, to promote Russian cultural heritage as well as the Emirati authorities who have quickly acknowledged the needs of Russian compatriots in this country. Our Embassy also makes its modest contribution to this in all respect important work. We do our best in order to provide the good endeavors of Russian compatriots on the Arabian soil with the support they need.”

Russian athletes also do not fall behind.

“Our tennis players, polo players, mini-football and beach football teams regularly participate in international competitions here.

The Russians took part in Abu Dhabi aerobatics competition ‘Red Bull Race’ and ‘Formula 1 Abu Dhabi Grand Prix’. Finally, we should mention that sports infrastructure created in the UAE makes this country a popular destination among Russian football clubs, including our national team for their training sessions and friendly games.”

Just as the interview draws to a close I ask if there is one thing that Ambassador Efimov would like to advise of entrepreneurs of any nationality that are thinking about starting businesses in the UAE, “In general I would like to wish all the readers more optimism, not to give in to difficulties, move steadily towards your goals as this country has all the opportunities available for it.” n

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RUSSIAN

The glorious past and a

by Roman Zalotuha

bright future We should think more about raising a strong, intelligent, evolved person Nevertheless, what is the difference between the Soviet and Russian hockey today?

Well, the difference is great. The Soviet hockey players used to take first place and used to become world champions and Olympic champions and now it happens pretty rarely. I wish we had more brilliant victories.

Nevertheless, there are many reasons against it.

If you ask me, I believe the incredible increase in hockey sporting proficiency in other countries if the main reason. Hockey is a world sport now. As for us, it seems that we have lost our unique character of playing. Of course, new hockey stars are appearing, it’s natural.

Nevertheless unfortunately, the qualification of the average player is still below the level when compared to the days of the Soviet Union.

The legendary Soviet hockey player, a member of the famous trio, “MikhailovPetrov-Kharlamov,” a ninefold world champion and twotimes Olympic champion Vladimir Petrov, a member of CSCA hockey club Veterans Association, had met our special correspondent. The meeting took place in the ice stadium of CSCA in Moscow

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n your view, has the Soviet way of playing the game continued in Russian hockey?

You know, in spite of different efforts to introduce skills of the so called “North American game” into the Soviet hockey, and later into the Russian one, our school still maintains and adapts a variety of methods. Our hockey is characterised by its special “twist”, the effervescent game which was typical for the Soviet hockey players. Such kind of a game is forceful, bright and alluring. Our guys have been demonstrating this style of play for many years and I think this is one of the main reasons for our ice hockey success in the world arena.

I

What do you base this on?

In the first place, it is necessary to consider the children’s and youth hockey coaching staff and those who are responsible for training young people. They are often preoccupied with the problem of gathering points... In their opinion, throws, goals, and seconds determine everything. This is not necessarily so. We should think more about raising a strong, intelligent, evolved person. As you know, hockey and other sports accept children from five years old. As a specialist, I would not undertake the decision to determine whether someone will be good at playing hockey or not.

It is very early to think this way, and that is why children should be given a widespread training.

Later on, looking at each one of the children and how they perform, you can determine whether they will be able to play ice hockey

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of the construction of sports facilities, but also the creation of the infrastructure of the city. This includes communication and electricity costs, as well as all kinds of transportation, new stations and the new airport. Yes, today it is all connected to the Olympics games. However, in the long run, it is a new impulse for the development of the Krasnodar Territory.

Of all the Olympic Games that you have participated in, which one was the most memorable?

Each Olympiad was perceived differently. My first Winter Games in Sapporo, Japan, is remembered by a lot of snow and a sense of a celebration ... There was a second Olympics in Innsbruck. It was perceived a little differently. Lake Placid was completely different... It took place in America, and the USA team was preparing very seriously for the match against us. Before the Olympics, they played ten games with us, and systematically prepared for a new game with our team. And at home, as you know it’s your audience, and it’s a huge responsibility.

You play for your loved ones, relatives...

Today’s youth is a little different, more advanced; Life itself makes it so or not. And only after some time, one can decide whether he will be: a defender, a striker or a goalkeeper. In other words, early specialisation, in my opinion, does not justify itself.

How are young Russian hockey players educated and trained today, and is there a chance that the Soviet hockey legend will not fade away into the past?

We do not have a declining mood. Now, Russia has built a variety of sports facilities, including hockey and ice-skating rings, and easily erected yard “boxes”. Boris Petrovich Mikhailov (also a twotime Olympic champion, CSKA hockey player, and a member of the legendary “troika”) and I are often invited to participate in the opening of such facilities.

For example, most recently, we were at the opening of ice rings in Novomoskovsk and Nevinnomyssk; places that are not considered “hockey” cities.

However, even there, children’s sports schools are being opened, and future hockey players are being coached in addition to figure skating schools being built. Henceforth, we do possess a new outlook for the future. I am sure that Russian hockey is not far behind, and is certainly

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moving forward. Therefore, it has a bright future ahead.

You were a member of many Winter Olympic Games. Don’t you think that it was strange that the site for the 2014 Winter Olympics was chosen to be Sochi?

You know, I think there is a certain stereotype in our minds. This stereotype was also among the Soviet people, and it is still present in Russian citizens. We have come accustomed to the idea that if it is the Winter Olympics, it must take place in the northern city. Such associations are common. But hockey is played in San Diego, and Phoenix, and Vancouver, and other warm southern cities. So why not in Sochi? ... It is even played in Dubai. In my opinion this is nothing strange: Sochi is a great city; there are mountains and the sea.

Don’t you think that the athletes of your time were more advanced in general terms than today’s players?

You know, the environment and the society we live in educates, teaches and defines us in a particular sphere. I do not think that there is a gap present nowadays.

Today’s youth is a little different, more advanced; Life itself makes it so. Internet is very popular in today’s’ time, but it was not during ours. There are mobile phones now and we can communicate in real time.

Others things have appeared, which were not present in our time; We used to read books, and now a very small amount of people read newspapers and books as all roam the vast Internet and watch movies. This why today’s youth has a very different upbringing and education. Neither better nor worse, it is simple different. n

Many say that too much money was spent on the Sochi Olympics. What do you think about this?

We’re currently talking about material costs, but we really need to understand what is going on. The cost was not only

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