Gulf Business July 2020

SPECIAL REPORT: THE MENA REGION’S TECH LEADERS REVEALED

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A COSMIC LEAP Global exclusive: Here’s how Saudi Arabia is powering its ambition of becoming a global tech hub

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Back to business: Are regional firms back in office?

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Heavy cost: How luxury firms are dealing with Covid-19

BD 2.10 KD 1.70 RO 2.10 SR 20 DHS 20

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The Brief An insight into the news and trends shaping the region with perceptive commentary and analysis

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Special Report: MENA’s tech leaders These are the executives leading the technology revolution in the region

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Cover Story: Up, up and away Saudi Arabia has announced grand ambitions of becoming a global tech hub.

This is how it is taking a leap into the future

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CONTENTS / JULY 2020

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A cautious comeback Have regional firms returned to their offices?

“We work only with dreamers. This place is not for conventional people or companies” -Saudi Arabia’s Crown Prince Mohammed bin Salman

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Lifestyle

Clocking the crisis p.60

Driving into the future p.70

Editor-in-chief Obaid Humaid Al Tayer Managing partner and group editor Ian Fairservice

Time to travel? p.72

Group director Andrew Wingrove andrew.wingrove@motivate.ae Acting editor Aarti Nagraj aartin@motivate.ae aartinagraj Deputy editor Varun Godinho varun.godinho@motivate.ae varungodinh Senior art director Olga Petroff olga.petroff@motivate.ae Art director Ángel Monroy angel.monroy@motivate.ae angel__monroy Photographers Mustufa Abidi, Jitendra Jangir

General manager – production S Sunil Kumar Assistant production manager Binu Purandaran Production supervisor Venita Pinto Chief commercial officer Anthony Milne anthony@motivate.ae Group sales manager Manish Chopra manish.chopra@motivate.ae Senior advertising manager Ravi Dutt ravi.dutt@motivate.ae Group marketing manager Dominic Clerici dominic.clerici@motivate.ae Group marketing manager- digital Anusha Azees anusha.azees@ motivate.ae

Cover: Ángel Monroy. Artwork: Mark Walls, Informa Tech, Shutterstock

Vol. 25. Issue 3. July 2020 Printed by Emirates Printing Press, Dubai

Follow us on social media: Linkedin: Gulf Business; Facebook: GulfBusiness; Twitter: @GulfBusiness; Instagram: @GulfBusinessMagazine

HEAD OFFICE: Media One Tower, Dubai Media City, PO Box 2331, Dubai, UAE, Tel: +971 4 427 3000, Fax: +971 4 428 2260, motivate@motivate.ae DUBAI MEDIA CITY: Office 508, 5th Floor, Building 8, Dubai, UAE, Tel: +971 4 390 3550, Fax: +971 4 390 4845 ABU DHABI: PO Box 43072, UAE, Tel: +971 2 677 2005, Fax: +971 2 677 0124, motivate-adh@motivate.ae LONDON: Acre House, 11/15 William Road, London NW1 3ER, UK, motivateuk@motivate.ae

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Providing outstanding training programmes delivered by experts, and packaged together with unrivalled media exposure through the Gulf Business network.

Offering a mix of learning modules that cater to both personal career growth ambitions and upskilling of entire teams to increase productivity and motivate employees.

Training programmes include: Bridging the Gap Sell like a Rockstar Reinventing your business right now Inspiring greatness

Find out more at:

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Powered by

Bouncing back

The Brief 9 11 13 14 15

JUL

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2020

2019

Advanced economies

2021

2022

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Emerging and developing economies

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China

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SOURCE: EUROMONITOR INTERNATIONAL MACRO MODEL

ILLUSTRATION: GETTY IMAGES/NATALYA ERMOLAEVA

Sustainability Finance Social Policy Retail

While Covid-19 has battered global economies, the future looks promising

Securing the food chain

The pandemic is acting as a catalyst for the UAE’s efforts to produce more of what it eats p.8 gulfbusiness.com

July 2020 7

The Brief / Food security A N A LY S I S

Rice in the desert The Covid-19 pandemic, while ringing in other changes, is also spurring the UAE to grow more of its food

ILLUSTRATION: GETTY IMAGES/GMAST3R

“This pandemic has sent a strong message that diversification always has to be a key element of our future plans,” Thani bin Ahmed Al Zeyoudi, the UAE’s minister of climate change and environment, said in an interview. The virus “is pushing us to come up with more innovative ways to grow faster than the rest of the world.”

The UAE imports as much as 90 per cent of its food – the 1,700 kilograms in the pilot project are just a fraction of what it needs – and the virus has proven a stern test for the country’s overseas supply chains. Although the UAE has so far avoided any serious disruptions in food imports, the pandemic is acting as a catalyst for the nation’s efforts to produce more of what it eats.

“We have to target the crops that are in high demand locally,” Al Zeyoudi said. “This is one of the things we’ve noticed during the pandemic.”

Next up could be projects for coffee and wheat, he said.

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he United Arab Emirates doesn’t spring to mind as an obvious place to farm rice, but the coronavirus is prodding the arid nation to explore new ways of feeding itself. In a pilot project with South Korea’s Rural Development Administration, the UAE in May this year harvested around 1,700 kilograms of rice in the emirate of Sharjah.

The partners planted Asemi rice, a popular variety in East Asia, because it can withstand heat and salty soils. An underground irrigation system that drips water instead of spraying it was crucial to the project’s success.

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DESERT CROPS

1,700

kilograms of rice harvested in the emirate of Sharjah in May this year

Cultivating food crops on a large scale in a desert environment may sound quixotic. Rice, wheat and coffee could drain scarce water resources, and summer temperatures in excess of 50 degrees celsius severely limit the seasons for open-field agriculture.

Climate change will only intensify the challenge.

“Local production is becoming a priority in the whole of the UAE,” Al Zeyoudi said. “The next step gulfbusiness.com

The Brief / Sustainability Powerful goals

THE SOUTH KOREANBACKED RICE PROJECT USED DESALINATED SEAWATER, WHICH THE UAE CAN PRODUCE IN ABUNDANCE, INSTEAD OF GROUNDWATER PUMPED FROM DEPLETING AQUIFERS The ministry is urging local farmers to embrace new technologies, Al Zeyoudi told Bloomberg TV. A mobile phone app that lets farmers access crop and livestock data and services has gained popularity since the pandemic struck. The app helps farmers manage their business while maintaining social distancing.

Even as it experiments with crops and expands local farms, the government is strengthening its overseas supply network. The UAE already owns farms in more than 60 countries, and it may invest in others.

“We’re going to ensure that our international agreements, our international alliances, are more solid than before,” Al Zeyoudi said, though he declined to say how much money the government might budget for additional farmland investments outside the UAE. “This pandemic has really driven home the need for a two-way approach to meeting people’s food needs.”

Bloomberg gulfbusiness.com

European Union 82bn

North America 119bn

Rest of Asia 138bn

is going to be that we reach the right level of water consumption.”

The climate change and environment ministry hopes to learn from the experiences, and missteps, of other countries. Neighbouring Saudi Arabia grew wheat on a massive scale for decades, using rotary sprinklers that squandered limited groundwater supplies. Such irrigation systems are “not an option any more, including for us in the UAE.” More promising alternatives that minimise water use include underground drip irrigation and, for certain vegetables, so-called vertical farms that grow crops inside climate-controlled facilities, he said.

The South Korean-backed rice project used desalinated seawater, which the UAE can produce in abundance, instead of relying on groundwater pumped from depleting aquifers.

East Asia 268bn

Annual investments in IRENA’s ‘Transforming Energy Scenario’ by region through 2050 USD

Sub-Sahara Africa 43bn Latin America 31bn SOURCE: IRENA

Rest of Europe 25bn

Oceania 13bn MENA 18bn

A N A LY S I S

Jesús Sancho Managing director, Acciona ME

Rebuilding a postCovid world

Sustainability must take priority as economies begin the process of recovering from the impact of the coronavirus

T 40GW

Renewable-energy capacity in the Middle East, which has doubled over the past decade

here is no contemporary precedent to the Covid-19 pandemic. The effort to contain the virus is taking up most of the resources, time and effort in just about every country of the world, and has severely restricted economic activity.

Governments around the world are launching large stimulus packages to prop up their paralysed economies and they will need to kick-start them with shovel-ready projects.

Ideally, governments should think of one side effect learnt in the first three months of 2020: nature’s amazing ability to bounce-back when given a chance.

The dramatic fall in pollution as a result of economic lockdowns were even visible from space. But experts say that it would take 10 consecutive years of this kind of economic slowdown to achieve the UN’s target to keeping global warming to below 1.5°C. Clearly, we must find another way to curb our carbon emissions.

Governments have a choice: perpetuate our old way of life or accelerate the transition to a more de-carbonised and sustainable economy. If stimulus packages are directed to high-carbon assets and industries, we will never flatten the curve of our carbon emissions. This will hasten the arrival of another crisis: irreversible climate change. A greener July 2020 9

The Brief / Sustainability A N A LY S I S

growth plan, on the other hand, could rebuild our economies and help us become more resilient to future pandemics and other crises.

There are two immediate ways in which countries in the Middle East can “green” their economies: by developing their vast solar energy potential and by managing their scarce water resources with a focus on conservation and energy efficiency.

1. RENEWABLE ENERGY

Traditionally, the Middle East has had a high reliance on fossil fuels. The Gulf countries are the world leaders in oil and gas production and exports. Fortunately, we are seeing a remarkable shift towards renewable energy thanks to a firm commitment by Gulf governments to develop their abundant wind and solar resources. Renewable-energy capacity in the Middle East has doubled to reach 40 gigawatts (GW) over the past decade and is set to double again by 2024. We have recently seen a record number of public tenders in the UAE and Saudi Arabia.

We can say that the GCC’s renewables “revolution” has contributed to solar power becoming a true cost-competitive alternative to fossil fuel power plants. The GCC region as a whole now generates 9GW of solar power, up from a paltry 91MW a decade ago. Between 2008 and 2018, investment in the field increased 12-fold. Solar farms are cheaper, faster and safer to build and maintain than oil and gas plants. Several countries in the region speak of becoming renewable-energy exporters and the growing competitiveness of renewables makes analysts optimistic that the trend will continue.

A GREENER GROWTH PLAN COULD REBUILD OUR ECONOMIES AND HELP US BECOME MORE RESILIENT TO FUTURE PANDEMICS AND OTHER CRISES

humans into ever-closer proximity to animals.

The Middle East has already experienced deadly coronaviruses jumping from camels to humans as happened during the MERS outbreak • Prevention is better than cure: The rapid spread of Covid-19 has taught us that it is cheaper and safer to prevent people from catching and spreading the virus than to attempt to treat huge numbers of cases at once. And for that, we need to be better prepared for the future with faster response plans and stronger healthcare systems.

The same holds true for climate change. It will be much better to prevent runaway temperature rises than to figure out how to deal with the enormous consequences in the future.

• Global challenges require systemic changes: Changes need to be activated by governments and companies but also require individual behavioural modifications.

As worldwide economies prepare to gradually reopen, a green recovery plan is our best hope for building societies with long-term sustainable employment and efficient, competitive and productive services and industries. The decisions we take will determine our future for generations to come.

2. WATER

ILLUSTRATION: GETTY IMAGES/JORG GREUEL

The Middle East should continue to develop reverse osmosis desalination plants and invest in its water treatment facilities and distribution networks to mitigate the acute problem of water scarcity. Reverse osmosis is the most environment friendly technology available – emitting 6.5 times fewer greenhouse gas emissions than thermal desalination technologies.

Investments in other critical infrastructure that is in short supply – such as mass transportation and healthcare – have also the greatest potential for creating multiplier effects: stimulating demand, investment and job creation. But this will materialise only if we do it right and with the adequate legal and commercial framework to entice local and international investors. We must rebuild sustainably, responsibly and effectively. We must ponder the lessons learnt of this pandemic, including: • The link with climate change: Climate change and the destruction of natural habitats are putting 10 July 2020

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The Brief / Finance

ILLUSTRATION: GETTY IMAGES/CARGO

THE REALITY IS THAT OUTBREAKS SUCH AS COVID-19 MAY OCCUR FROM TIME TO TIME, WITH LITTLE TO NO WARNING AT ALL BUILD A SAFETY NET

COMMENT

Jayesh Patel Head of Liv. digital bank, Emirates NBD

Be prepared These four financial moves can help tide you through challenging times

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ith the ongoing outbreak of Covid-19, people have been forced to think twice before stepping out of their homes into public spaces. Seeing that the death toll of the coronavirus has officially surpassed that of the previous SARS pandemic in 2003, it should be everyone’s responsibility to make conscious decisions and take the necessary precautions to protect ourselves, our loved ones, our communities and countries as a whole.

That said, it is no surprise that times like these have the potential to hit us really hard financially as well, especially if we are not prepared for it.

The reality is that outbreaks such as Covid-19 may occur from time to time, with little to no warning at all. As a result, the global economy could face significant challenges.

While we are making the conscious decision to take precautions to protect our health right now, how many people have had the foresight to make the same conscious decisions to ensure that their

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financial health is in order to face economically challenging times?

Every financial decision right now needs to be made carefully. People are facing tough times and will continue to do so over the coming months, and there is not much that they can do about it until the pandemic starts to abate and normalcy is restored. But how can you help keep your situation from getting any worse?

BE FRUGAL

It goes without saying that now is the right time to keep your expenses at the minimum and conserve the bank balance for as long as needed. Make calculations and plan ahead of time. But in order for you to do that, you need to start understanding where you are spending money. What categories are you spending on? Make a full list including your utilities, food, travel, etc. Make it a habit to actually understand where your money is going, then decide what is a need and what is a want – keep the needs as these are required, but do not treat yourself to all your wants.

If you do not already have a rainy-day safety net, focus on building one. Having three to six months worth of expenses in an easy access account is the most sensible thing to do. Another factor that should be part of anyone’s financial planning is signing up for an income protection plan. Several firms offer policies that ensure the holder’s family has something to fall back upon if something unfortunate happens.

BE FLEXIBLE

Have you kept money aside for retirement and promised not to touch it? Well, this is the time to trade off some long-term goals for the unexpected short-term hiccups. If you are facing a loss of income and have to access that money, do it. Dipping into that saving is better than borrowing, selling something cheap, or allowing credit card debt to accumulate.

UPSKILL YOURSELF

Constant upskilling is the new normal for anyone hoping to stay relevant in an increasingly mechanised world. During crises, industries will realise that new operating modules have emerged – and that they are fully digital. Artificial intelligence (AI) and robotics is already revolutionising many industries. Traditional methodologies could change, and hence, what you do today might not be relevant tomorrow. This is the time to be more diversified and focus on building your digital capabilities to survive.

Economic downturns are normal, and expected, as they are part of regular market cycles. Up until this pandemic, we experienced over a decade of market growth, so a slowdown was bound to happen. That does not mean that we just sit around and wait for something bad to happen, but it does mean that we should stay calm when markets are cooling off.

And always remind yourself – this is a global storm, but it will eventually pass.

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ILLUSTRATION: GETTY IMAGES/KRERKSAK WORAPHOOMI

The Brief / Future

A N A LY S I S

Rehan Khan, Managing consultant for BT and a writer of historical fiction

Driving the change agenda Making an ‘implementation intention’ can make a huge difference to ensuring you actually carry out what you planned to do

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n a crisis, we come to a turning point. We have to decide. It’s this intensity which makes it feel like a crunch moment, because humans have a natural affinity with the status quo. Very few of us like change.

In the past few months, remote working has gone from a nice-to-have to a must-have. The World Economic Forum estimates that pre-Covid-19, only 7 per cent of US workers regularly worked from home while in Europe it was around 25 per cent. Many organisations regarded remote working as a benefit only available for more senior executives and some knowledge workers. All that’s changed.

Now that employees have got a taste of what it feels like, how many will want to go back to a five-daysa-week commute into work? More forward-thinking 12 July 2020

7%

of US workers used to work regularly from home before Covid-19

employers will be considering the benefit in improved productivity by allowing their employees to work part of the week from home. However, there is a significant trust component here – will employees actually be working or catching up on the domestics? Certainly, collaboration technologies can play a role in ensuring remote workers are connected and engaged, but there is also a lot that employees can do to drive the change agenda. One is setting clear intentions about when, where and how they will work from home and when, where, and how they will fit their personal lives around their work.

Researchers in the UK worked with a group to build better exercise habits over the course of two weeks. The subjects were divided into three groups.

The first group was the “control” group. They were asked to track how often they exercised. The second group was the “motivation” group. They were asked to track their workouts but also to read some material on the benefits of exercise. The researchers explained to the motivation group how exercise could reduce the risk of coronary heart disease and improve heart health. Finally, the third group received the same presentation as the second group, which ensured they had equal levels of motivation.

However, they were also asked to formulate a plan for when and where they would exercise over the following week. Specifically, each member of the third group completed the following sentence: “During the next week, I will partake in at least 20 minutes of vigorous exercise on the [following day], at the [following time] and in the [following place].”

In the first and second groups, 35 to 38 per cent of people exercised at least once per week. But in the third group, who made the clear intention, 91 per cent exercised at least once a week. The sentence they filled out is what researchers refer to as an implementation intention, which is a plan you make beforehand about when and where to act.

When you set an implementation intention it makes a huge difference to ensuring you actually carry out what you intended. This is really important for wellbeing as the boundary between work and home life blurs. For example, if you want to stop working on your day job at 6pm, then make an implementation intention which goes something like this: “Switch my work mobile to flight mode at 6pm.”

Or if you find you aren’t getting to sleep at the right time, make an implementation intention like: “Set an alarm for 9.30pm, turn off all electronic devices and start winding down.” Remember sleep boosts your immunity, which is critical in a pandemic.

Crisies can be used by employers to bring about organisational change, but also by employees to effect personal change. We’re all in a crisis, so let’s not waste the opportunity to change for the better. gulfbusiness.com

The Brief / Social Zaib Shadani Founder and managing director of PR and social media agencies Shadani Consulting and The Comms Room

COMMENT

without looking your best, so make sure that you give your LinkedIn picture the same importance.

It needs to be professional, but simultaneously also convey your personality and ‘essence’.

Invest in professional photography, get three options and choose the ‘best’ picture via public consensus and feedback.

Bonus tip: Did you know that you can customise your LinkedIn cover photo? This is the header that goes behind our profile picture and is prime real estate. Update your cover photo with an impactful image that supports your ambitions and expertise.

2. OPTIMISE SEO WITH KEYWORDS

The LinkedIn makeover – 7 steps to get noticed Look better, rank higher and get interactive to supercharge your professional profile

ILLUSTRATION: GETTY IMAGES/CENKERDEM

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ovid-19 has changed the social media landscape, with feeds inundated with coronavirus news. LinkedIn has been no different. An estimated one third of all LinkedIn posts being about Covid-19, with professionals turning to the platform to navigate the ‘new normal’ way of working, as well as use it to actively look for employment opportunities, as they find themselves out of work.

With jobs being scarce in the market right now, it’s imperative to stand out and distinguish yourself on the professional networking site, which is used by recruiters and employers.

Here are the top tips that will ensure you are a cut above the rest: 1. LOOKS MATTER

Your profile picture is the first thing people see and it speaks volumes about creating a strong first impression. You wouldn’t leave the house for a meeting gulfbusiness.com

Before you get started on the actual content for your profile, you have to ensure that ‘keywords’ are a core focus in the way you craft your narrative. However, it’s important to note that LinkedIn SEO differs from regular SEO. People mostly use keywords matching a job title, as opposed to long descriptions – for example someone may say “multimedia specialist for designing advertising brochures” in a Google search while on LinkedIn it may be “graphic designer”. It’s important to keep your profile jam-packed with the most relevant words pertinent to your industry and job description, to help your profile ranking.

3. YOUR HEADLINE IS YOUR PERSONAL TAGLINE

Because your headline appears directly below your name, people will associate that description with you. LinkedIn’s default setting is to use your current job title as your headline, but this is a big no-no. You’re much more than that, so capture people’s attention with the correct wording.

Your headline will also automatically appear whenever you comment or share something, so think of the headline as your personal tagline.

4. MULTIMEDIA IS YOUR FRIEND

WITH JOBS BEING SCARCE RIGHT NOW, IT’S IMPERATIVE TO STAND OUT AND DISTINGUISH YOURSELF

Static text can be very boring and monotonous, which is why the use of multimedia is so impactful and perfect for immersive storytelling. Take for example the ‘Featured’ section, which allows for the addition of images, videos and documents, thereby enabling people to get a glimpse into your profession or achievements. This capability also extends to other parts of your profile, including the ‘Experience’ section, with LinkedIn now offering a multitude of options that allow for greater engagement.

5. IT’S ALL ABOUT YOU

The ‘About’ section is your shop window. It’s all about what you’re bringing to the table. This is your chance to sell yourself and tell your personal success story – if this is interesting, people will read further.

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The Brief / Policy A N A LY S I S

This is your elevator pitch, so don’t make the mistake of listing your job titles or running off generic and cliché sentences like “I am a results’ oriented team player”. Be creative, clear and informative.

are endorsed first. It’s better to list fewer skills and get maximum endorsements than have a laundry list of skills with low endorsements.

6. GET ENDORSED AND RECOMMENDED

7. GROW YOUR NETWORK AND KEEP ADDING CONTACTS

No one is going to toot your horn on your behalf, so go ahead and take measures to actively build your reputation. A recommendation on LinkedIn is a public validation that adds tremendous credibility to your profile. So ask for recommendations, especially from senior colleagues and industry heavyweights.

Endorsements are a keyword haven, so pinpoint your major skills and order them so the critical ones

This is not Facebook. The point is to grow your professional network and add connections that will expand your reach, so don’t limit yourself to only connecting with friends and people you know. You can actively pursue this goal by using the search feature to find people in your target audience, and then work towards adding them to your professional connections.

A N A LY S I S

The lockdown effect

While lockdowns and distancing protocols have had economic and social implications, they have helped prevent millions of potential infections

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he Covid-19 coronavirus that broke out in China last year and has since spread across the world, has set in motion a series of sudden and dramatic measures as countries try to adapt to the ‘new normal’. Governments scrambled to enact policies to safeguard public health and safety. In the absence of a vaccine – months away, in a best-case scenario – non-pharmaceutical interventions were potential saviours in curtailing the transmission of the contagion.

Of such interventions, lockdowns of varied degrees – depending on the severity and extent of the spread of the contagion – were deployed across countries, a seemingly obvious choice for societies to break the chain of transmission and protect the most vulnerable segments.

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to the virus (at time of going to press). But the UC Berkeley research suggests that the toll would have been far greater without policy interventions.

In China alone, anti-contagion policies helped prevent roughly 37 million more confirmed cases, while South Korea, Italy and Iran averted an estimated 11.5 million, 2.1 million and 5 million additional confirmed cases, respectively.

Meanwhile, in the US and France, an estimated 4.8 million and 1.4 million confirmed cases were prevented.

WHAT’S NEXT

While lockdowns may have crippled businesses, triggered exoduses and caused potential mental health implications, their role in curtailing the transmission of the virus is without modern parallel.

According to research from a University of California, Berkeley team published in the journal Nature, policy deployments such as travel restrictions, business and school closures and other interventions helped avoid approximately 530 million total Covid-19 infections across six countries – China, South Korea, Italy, Iran, France and the US from January to April 6, 2020. Of these infections, 62 million would likely have been “confirmed cases.”

Currently, global cases have crossed 10 million, with 500,000 having succumbed

As lockdowns and travel restrictions are gradually lifted across parts of the world, pockets of outbreaks signalling a potential second wave could cause a recrudescence in the number of Covid19 cases, threatening a nascent economic recovery.

In mid-June, China reported its largest daily case increase in two months with Beijing shuttering down its largest fruit and vegetable supply centre and nearby housing districts. Also, in midJune, Iran recorded its highest daily count of fatalities in nine weeks.

If similar outbreaks in other countries lead to a resurgence of the Covid-19 virus, it may again prompt governments to reinforce lockdowns and distancing protocols to battle the contagion until a cure finally emerges.

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The Brief / Retail Mahmoud Adham Founder and CEO, Munchbox

INTERVIEW

Explainer: Is the booming healthy snacks sector in the region wellregulated?

As consumers in the GCC increasingly focus on adopting fitter lifestyles, the regional health food industry has seen massive growth With an increased focus on wellbeing, has the health food industry seen a rise in the region in recent years?

Yes. With the new generation in the GCC being much more health conscious and aware of what they put in their bodies, we have seen a tremendous increase in the demand for healthy snacking. Covid-19 has also played an additional role in increasing this demand because people are staying at home with little opportunity to go out or workout. This means they need to be extra careful with what they eat so they do not gain weight and face health problems due to the lack of movement.

Are there specific segments within the sector seeing stronger growth?

With the faster lifestyle people have adopted, the time for sit-down meals is no longer a priority as it was before.

This means people are getting more and more of their food intake on the go, while snacking. We can see this in the growth of the number of products on the shelves of retailers and the space they give in their stores to healthy snacking products.

Are you seeing more local companies mushrooming to meet demand for health snacks?

ILLUSTRATION: GETTY IMAGES/CSA IMAGES

We see many players come into the market due to the growing category.

However, only very few manage to survive for more than one or two years mainly because of the difficult nature of the business when it comes to securing good quality manufacturing and fulfilling the demanding needs of customers. Customers are now much more educated, they have many more options and are hence extremely picky about what brands they choose to trust. The building of this trust takes time. It took Munchbox six years to reach where we are today.

There are a lot of products claiming to be ‘healthy’. Are there regulations to monitor the market?

Dubai Municipality has world-class regulations and measures in place to ensure that products sold gulfbusiness.com

July 2020 15

The Brief / Startups A matter of choice

SME adopters rank the range of functionality and features as the top priority in selecting fintech

in the country deliver on what they promise and are actually healthy for the consumer. Having said that, there are of course many soft claims which some companies use to seem healthy, for example, ‘reduced sugar’, or ‘now with less sodium’ which are difficult to quantify. Munchbox follows a puritan approach, and we only make claims that are absolute and leave no room for interpretation, like ‘no sugar added, ‘zero preservatives’ and ‘zero artificial colouring’.

The pandemic has led to people cooking a lot more at home. Has this impacted the industry?

Yes, but for the better.

Speaking specifically about our products, with reduced footfall in supermarkets, petrol stations and coffee shops, we have seen a decline in retail sales.

But on the other hand, our customers have shifted their purchasing habits to ordering from our online platform and our online grocery partners. Although people are spending time at home cooking, they’re also now snacking while cooking, watching TV, and working on their laptops at home.

DUBAI MUNICIPALITY HAS WORLD-CLASS REGULATIONS AND MEASURES IN PLACE TO ENSURE THAT PRODUCTS SOLD IN THE COUNTRY DELIVER ON WHAT THEY PROMISE AND ARE ACTUALLY HEALTHY

Percentage of adopters that chose each answer as one of their top three reasons

Rates and fees Trust in the provider’s team and their reputation Availability of services 24 hours a day, 7 days a week Range of functionality and features Ease in setting up, configuring and using the service Compatibility with daily operations and infrastructure 0

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60

A N A LY S I S

Nurturing the fintech ecosystem Regional fintech startups hold tremendous room for growth, writes Zainab Mansoor

C

Lastly, what is the outlook for the future? Will the postCovid-19 era see major changes in the sector?

We are very optimistic about the future. Since the pandemic began, we have seen a tremendous surge in online sales.

We have also noticed that there is a significant shift towards lower calorie snacks as people are spending less time exercising.

With people spending more time at home, they will continue shifting their habits towards ordering online.

We have prepared for this new normal by launching 44 new snacks sold exclusively online to cater to this demand.

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SOURCE: ERNST AND YOUNG’S GLOBAL FINTECH ADOPTION INDEX 2019

$2.5bn the estimated value of the MENA fintech market by 2022, according to MENA Research Partners

hanging consumer needs and rapid technological development has given a massive impetus to financial technology (fintech), which has grown from strength to strength. Since the first credit card launched with a magnetic strip in the 1960s, the intertwining of digital technology and finance to improve the offerings in the market, has seen constant innovation.

Furthermore, fintech’s adaptability across a slew of consumer sectors is propelling its widespread acceptability. Managing finances, trading shares, furnishing payments and shopping online (often on your smartphone) has never been more convenient.

The numbers add up: Ernst and Young’s Global FinTech Adoption Index 2019, surveying more than 27,000 consumers across 27 markets, revealed that China and India both hold an 87 per cent fintech adoption rate while the global fintech adoption rate in 2019 stood at 64 per cent. Regionally, the MENA fintech market will reach a value of $2.5bn by 2022, according to research company MENA Research Partners. gulfbusiness.com

The Brief / Startups INTERVIEW

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ILLUSTRATION: GETTY IMAGES/VECTORFUN

INVESTOR ENGAGEMENT

Technological advancements have not only led to a notable increase in fintech startups, but have – understandably – led to substantial investor engagement as well.

Since 2015, $237m has been invested in MENA-based fintech startups across 181 deals, with 51 of those deals being made in 2019 alone, a report cocompiled by MAGNiTT and Abu Dhabi Global Market reveals.

Consumer demographics, internet and payments adoption, consumer attitudes, regulatory sandboxes, fintech funds and accelerators, and private capital availability remain key drivers of regional fintech adoption and startup growth, the report notes.

Regionally, the UAE stands out as the largest MENA hub for the industry, accounting for 46 per cent of all fintech startups.

This growth has been backed by a tech-savvy consumer base, government support and programmes that underpin the startup ecosystem.

The Dubai International Financial Centre (DIFC) launched the $100m FinTech Fund in 2019 to accelerate the development of financial technology by investing in startups from incubation through to growth. As part of the fund, DIFC invested in four fintech startups in June this year – FlexxPay – a cloud-based B2B employee benefits platform; Go Rise – a startup building a financial services platform for 250 million global migrants; NOW Money – a payroll services startup for Gulf-based companies; and Sarwa – a robo-advisory wealth management firm.

DIFC has registered over 100 fintech firms since the end of 2018, it announced in Q3 2019.

Outside the UAE, Riyad Bank in Saudi Arabia revealed a SAR100m ($26.7m) programme to invest in financial technology startups, while Bahrain launched its FinTech Bay in a bid to become the Gulf region’s centre for fintech, hosting co-working spaces and shared infrastructure for corporate innovation labs and startups.

Fintech leader

The UAE stands out as the largest MENA hub for the industry Share of fintech startups

46% UAE SOURCE: MAGNITT

Bahrain also offers a regulatory sandbox which allows fintech firms to experiment with new ideas and solutions.

The Covid-19 pandemic also highlighted its relevance at a time when people have been either unable to – or preferring to – avoid physical services. Some of the products that have seen the biggest increase in transactions include online banking and cryptocurrencies, according to experts.

Overall, greater investment, regulatory support and a digitised consumer base have inspired fintech startups to innovate and expand.

Looking ahead, the future of the regional fintech space looks bright.

July 2020 17

The Brief / Investment INTERVIEW

Global trends shaping the investment landscape Yves Bonzon, group chief investment officer of Swiss wealth manager Bank Julius Baer shares his views on the world economy, investor sentiments, and emerging trends for the future Will the upcoming US elections have a major impact on global markets? How do you assess President Trump’s re-election chances?

As we went into 2020, we highlighted the benign macro background we operated in back then. External shocks were pointed out as key risks for this year, including the outcome of the US presidential election. A Democratic victory could entail that we are likely to see more financial repression going forward, weighing on investment returns across all industries.

As far as Donald Trump’s re-election chances are concerned, never before have they been affected to such an extent as by this crisis, neither by the trade war nor by the hopeless attempt by the Democrats to impeach the President earlier this year.

Should the economy not recover well in the run-up to the US presidential election on November 3, the US administration is very likely to drop its opposition to another stimulus package. The state of the economy will be a decisive factor influencing the election result.

Gold as a commodity has behaved in an unusual manner during the pandemic. Do you see a reason why it is not positioned as strongly as it should have been?

We indeed get questions as to why gold has not performed even stronger in light of the amount of money printed by central banks and the size of the asset purchases.

Gold and its price drivers are often fundamentally misunderstood. When held in physical form, the most precious characteristic of gold is the fact that it is the only financial asset that is not a claim against something else, i.e. that does not involve counterparty risk. Gold therefore acts as a hedge against systemic risk, which means that in the short term, only a series of policy mistakes triggering a 1930’s style depression would provide additional tailwind.

If the measures to support and stimulate the real economy were insufficient, the real sphere would contaminate the financial system; a scenario in 18 July 2020

Oil in focus

Norbert Ruecker, head of Economics and Next Generation Research at Bank Julius Baer

Yves Bonzon, group chief investment officer Julius Baer

TRUMP’S RE-ELECTION CHANCES HAVE NEVER BEEN AFFECTED BEFORE TO SUCH AN EXTENT AS BY THIS CRISIS

The collapse of the supply deal due to the rift between Saudi Arabia and Russia heavily burdened oil prices earlier this year. But soon it dawned on the oil market that the coronavirus crisis bears a much more meaningful impact. Volume-wise, the demand collapse dwarfed the threatened supply expansion, and oil prices continued to slump for economic rather than political reasons.

Key oil producers only briefly appeared as unreliable oil market stakeholders willing to flood the market.

The focus turned to the pandemic, and the memories of this episode began to fade soon.

With demand starting to rebound, the environment for effective oil politics swiftly improved, and soon the hegemons returned to the negotiation table to conclude a new version of the so-called OPEC+ deal. The rift has already partially closed and does not seem to pose any meaningful longterm impact. That said, oil politics, and geopolitics overall, tend to be erratic and volatile.

The more significant impact likely comes from the outlook of sub-$60 oil prices for longer, which pressures the petro-nations to undertake structural reform towards reducing oil dependencies.

gulfbusiness.com

The Brief / Investment

ILLUSTRATION: GETTY IMAGES/SIMONE GOLOB

INTERVIEW

which gold would benefit. At $1,700 per ounce, gold fully discounts a deep recession. In the medium term, it could print new highs as reflation picks up steam.

Are investors more inclined towards a sustainable approach in the wake of the pandemic? How do you see this trend evolving?

What is your advice to investors on a best practice for asset allocation given the current market conditions?

With the Fed holding rates at zero for a very long period of time, there is no alternative to diversified investments.

Fed chairman Jerome Powell promised to raise interest rates only after full employment is restored, which could take several years. Holding cash will therefore not be rewarded for a very long period of time, and I strongly reiterate the call to view the strategic asset allocation, and not cash, as the true benchmark in a world of explicit financial repression.

As such, Powell’s statement is constructive for financial markets, and we therefore stick to our current stance on equities. gulfbusiness.com

HOLDING CASH WILL NOT BE REWARDED FOR A VERY LONG PERIOD OF TIME

In the end, it is all about managing risks. In general, we like to construct portfolios by managing risks in a very conscious way, avoiding hidden bets and factor exposures we do not explicitly want to have. In this regard, actively managing sustainability-related risks by incorporating ESG factors in our portfolio construction process certainly makes sense.

Consistently, the absence of stocks including significant ESG-related risks in a portfolio tremendously enhanced performance during the first half of 2020.

Sustainable investing goes beyond a buzzword, and considerable capital reallocation shifts from traditional to sustainable investment products are to be expected. In a nutshell, definitely a megatrend that is here to stay and develop much further across the entire industry.

July 2020 19

The Brief / Infographics

The startup effect

MENA STARTUP FACTS

$1.9m

Startups contribute significantly to a country’s economy, helping curate a thriving entrepreneurial ecosystem via innovation, competition and growth

average funding amount, excluding Souq and Careem

212

number of investors in MENA -based startups

10

Spike in funding 2019 was a record year for MENA-based startups in terms of deals

deals made by 500 Startups, the most active MENA-based investment firm

564

6+

In USD

Funding of Souq and Careem MAGNiTT Undisclosed Funding Estimate

500

Disclosed Funding Deals

958m

431

826m

400

The right bet

300

“Working with startups can be the most agile approach for corporates to execute faster, outsource R&D and change their internal culture”

800m

352

200m

704m 61m

636m

625m 600m

69m 150m 210

204

51m

200

400m

Roberto Croci, Managing director, Microsoft for Startups MEA

643m

39m 557m

232m 435m

60m

Careem’s acquisition

by Uber accounted for 86.1% of the total exit value in 2019

294m

138m 0

0

2015

THE CAREEM MAMMOTH

2016

2017

2018

2019

Total $3.6bn

34m

100

Careem $3.1bn

200m

accelerator programmes by Flat6Labs, the most active accelerator for early-stage startups

Regionally funded The number of investors in MENA-based startups, increasingly coming from within the region, rose in 2019 by a third from 2018 Regional Investors

25%

International Investors

30%

30% 36% 34%

70

100

143

159

27

212

startup exits took place in MENA, the highest on record

IPOs of MENA-based startups

66%

64%

70%

70%

75%

2015

2016

2017

2018

2019

20 July 2020

OUT AND ABOUT 2019 was the year for exits in the region

2

gulfbusiness.com

A promising year Top 5 funding rounds in MENA-based startups in Q1 2020 In USD

Halan (Ride-hailing) Egypt

Nana (Online grocery) Saudi Arabia

Kitopi (Cloud kitchen) UAE

Vezeeta (Doctor booking) Egypt

SellAnyCar (Online car trade) Saudi Arabia

60m

40m

35m

18m

15m

Deal volumes In 2019, Egypt ranked in the first spot by number of deals, accounting for a quarter of the total

Funding share In 2019, the UAE accounted for the lion’s share of total funding

Egypt

UAE

25%

60%

UAE

23% Saudi Arabia

12%

+4%

7%

The year-on-year increase in Saudi Arabia’s share of total deals compared to 2018

Lebanon

8%

$704m

Others

TOTAL FUNDING

Jordan

6%

564

Jordan

6%

DEALS IN TOTAL

Saudi Arabia

Egypt

14%

9%

Lebanon

4%

Most attractive sectors Renewable energy 9%

Fintech 11%

E-commerce 14%

Real estate 15%

Delivery and transport 19%

Although down 12% from 2018, delivery and transport accounted for the highest amount of funding in 2019

THE DEALMAKER For the second year in a row, fintech ranks first by number of deals, supported mainly by accelerators and governments

13% Fintech

11%

E-commerce

9%

Delivery and transport

SOURCE: MAGNITT’S 2019 MENA VENTURE INVESTMENT SUMMARY

gulfbusiness.com

July 2020 21

PHOTO: ANDREW CABALLERO-REYNOLDS/AFP VIA GETTY IMAGES

The Brief / Lightbox

22 July 2020

gulfbusiness.com

A demonstrator waves an American flag with the words “Not Free� painted on it in front of the Washington Monument during a Juneteenth march in Washington, DC, on June 19, 2020.

The US marks the end of slavery by celebrating Juneteenth, with the annual event taking on renewed significance this year gulfbusiness.com

July 2020 23

FEATURES / COVER STORY

24 July 2020

gulfbusiness.com

FEATURES / COVER STORY

Saudi Arabia is transforming its technology landscape, aiming to become the regional hub for innovation and building an ecosystem where the tools of tomorrow are conceptualised and created. Powering that ambition is LEAP, a new mega tech event set to have a ‘seismic’ impact on the global stage.

Gulf Business has the exclusive details

CROSSING NEW FRONTIERS

BY AARTI NAGRAJ

gulfbusiness.com

July 2020 25

FEATURES / COVER STORY

To boldly go where no man has gone before.

T

he popular Star Trek phrase would perhaps be an apt way to describe the mega ambitions powering Saudi Arabia’s upcoming new technology event LEAP. In a world exclusive, Gulf Business can now reveal details about LEAP, a global tech event set to be hosted in Saudi’s capital Riyadh in early February 2021, aimed at showcasing and supporting pioneering innovations from across the world.

“LEAP will be the most iconic and seismic tech event for a generation. It will serve the visionary strategic plan of the government to become one of the world’s top 20 tech enabled countries,” says Abdullah Amer Al-Swaha, Saudi Arabia’s Minister of Communications and Information Technology.

Technology is a fundamental pillar of Saudi Arabia’s Vision 2030, and the last few years have seen a significant acceleration in the adoption of digital transformation initiatives.

The numbers back up the kingdom’s aspirations. Saudi Arabia is the region’s largest information and communication

26 July 2020

technology (ICT) market and was ranked among the top 15 globally in 2019.

According to IDC, ICT spending in the kingdom is set to reach $37bn this year, up 2.4 per cent on 2019.

The government, finance and communication sectors will spend in excess of $3.8bn on ICT this year, accounting for almost 53 per cent of the total spend.

“The Saudi ICT market is grappling with a wave of new digital transformation realities,” said Hamza Naqshbandi, IDC’s country manager for Saudi Arabia and Bahrain.

“The growth we are seeing in ICT spending is primarily being driven by an increased focus on giga projects and smart governance. These initiatives are spurring the adoption of artificial intelligence, robotics, the Internet of Things (IoT), cloud, blockchain, and a host of other emerging technologies as both the public and private sectors look to create synergies, cut costs, increase safety, and optimise processes across verticals in a whole new way.”

Saudi Arabia is accelerating ICT applications across sectors such as banking,

insurance, healthcare, automotive, power and utilities, and education to drive socioeconomic benefits. But non-traditional tech segments such as innovation accelerators and third-platform technologies will also deliver a win-win outcome for businesses and the government, consultancy EY opined in a report. “The most significant impact of ICT will be in unlocking the human potential and accelerating new ways of working – with 58.5 per cent of the population under the age of 30, ICT technologies are expected to provide long-term employment sustainability.”

Late last year, Saudi’s Ministry of Communications and Information Technology (MCIT) confirmed that technology localisation initiatives have “significantly increased” the ICT sector’s employment capacity in 2019.

The ministry has also launched a fiveyear strategy aimed at accelerating the sector’s growth by 50 per cent, elevating its contribution to GDP by $13.3bn, increasing foreign investments, and empowering and supporting the participation of women in the kingdom. gulfbusiness.com

ARTWORK: MARK WALLS, INFORMA TECH, SHUTTERSTOCK

TAKING A LEAP

One of the initiatives that is being launched by the MCIT, in collaboration with international events organiser Informa Tech is the LEAP event, which will play a major role in helping the kingdom achieve its targets.

“LEAP is one of the most exciting launches for Informa Tech in 2021, and knowing the massive ambition the Saudi government has for the show, we’re expecting it to be of significant global impact,” explains Carolyn Dawson, managing director, Informa Tech, London. “It is far more than a tech festival in a moment of time – this will encompass all elements of government and the private sector, education and academia, entertainment and celebrities – it will be a vehicle to transform Saudi’s economy from one reliant on hydrocarbons, to one enabled by technology in all sectors. It will play a key part in Saudi’s future adoption of emerging technology.”

The event, which will be held from February 1-3, 2021 at the Riyadh Front Exhibition Centre, promises a showcase of technologies across AI, blockchain and cryptocurrency, robotics, 3D printing, gulfbusiness.com

IoT, biotech and healthtech, smart mobility, open source, quantum computing, 5G, materials science, space and satellites, data and fintech.

LEAP will also feature a stellar keynote lineup of 600 tech leaders, futurists and statesmen from across the world, while a dedicated AI summit will see innovators with ‘game-changing’ case studies present their stories on stage.

Attendees will also have the opportunity to attend eight Orbital Talks, highly focused sessions which will see renowned presenters delving into the strategic priorities for nations worldwide. The free-to-attend talks will offer insights across industries, ranging from medical innovation to help stop the spread of pandemics, the creation of AI powered systems to disrupt the banking system, to hackers exposing security weaknesses in new technology.

Another key element is the startup pitch stage, which will see hundreds of startups and aspiring entrepreneurs present their ideas to a judging panel of seasoned investors for a massive cash prize injection. Dozens of prizes will be awarded to

the best innovators and the most promising business ideas, including invitations to join some of Saudi’s well-funded government incubators and corporate accelerators, including a $55bn PIF investment fund for cutting-edge technology and R&D. Tech startups in the kingdom have already been seeing strong investor interest – online grocery platform Nana Direct raised $18m from investors including venture capital fund Saudi Technology Ventures (STV) and Middle East Venture Partners earlier this year. Meanwhile AI startup UnitX, a spin-out company from King Abdullah University of Science and Technology (KAUST), secured $2m from the KAUST Innovation Fund and Saudi Aramco’s Wa’ed fund last year. Venture capital investments in Saudi are expected to grow from $50m in 2018 to $500m annually by 2025, according to a report from STV. “No country in the region has the ability to fund startups to the same significance that Saudi Arabia does. LEAP will have a massive startup component with a globally significant prize fund for the competition. All government companies and July 2020 27

departments will be invited to submit their challenges for startups to solve. All investment vehicles, including government, sovereign wealth funds, corporate investment arms, corporate accelerators, family offices, VCs and PEs will be invited by the government and Informa Tech to participate and treat LEAP as a major opportunity for acquiring, investing and incubating startups,” explains Dawson.

Expectedly, organisers have seen tremendous interest from the industry for the event – including from tier one technology companies across the world – driven by the Saudi government’s overwhelming support towards it.

“We have had almost a year of discussions and planning with the government on this special project. What I can tell you is that the level of ambition they have for LEAP is more significant than any project I’ve worked on before in events. What the Saudi government intends to do and spend on technology over the next decade is phenomenal, groundbreaking and transformational. Mega cities, mass tech adoption and bold investments will be made to make Saudi Arabia one of the most tech enabled 28 July 2020

countries in the world. The vision is aweinspiring and very exciting,” says Dawson.

“When speaking with the industry we have had overwhelming interest, they know that Saudi is the largest spender in the region when it comes to technology, but what they’re seeing now is that the kingdom is planning to become the biggest innovator, the largest hub, a society vibrant in its tech education and brimming with talent.

“WE WORK ONLY WITH DREAMERS. THIS PLACE IS NOT FOR CONVENTIONAL PEOPLE OR COMPANIES” – Saudi Arabia’s Crown Prince Mohammed bin Salman

“Overall, the feedback from within the industry has been that they have been waiting for years for Saudi to deliver such an event, and now that it’s finally come, they will support it wholeheartedly.”

SAUDI 4.0

In December, at the 23rd session of the Council of Arab Ministers of Communications and Information Technology held in the kingdom, Saudi declared plans for Riyadh to become the Arab world’s “firstever digital capital city”. It also created the Arab Digital Capital initiative to encourage the creation of a stimulating ecosystem for investment in ICT, activate plans that develop knowledge within the ICT industry across the Arab countries, and adopt new measures that will facilitate and enhance tech entrepreneurship in the Arab region.

Meanwhile, it has also started developing the futuristic mega-city NEOM, a 26,500sqm business zone announced in 2017 by Saudi Crown Prince Mohammed bin Salman as a tech hub, job creator and centre for foreign investment. The development is intended to be “an oasis of stunning cliffs, sandy beaches and high-tech projects gulfbusiness.com

FEATURES / COVER STORY

powered by wind and solar energy where robots outnumber humans and a cosmopolitan lifestyle offers sports, concerts and fine dining,” it was announced at the time of launch.

“We will see Riyadh become a major global hub for technology over the next decade, spearheaded by enormous projects like NEOM, investment funds like the Public Investment Fund (PIF), and innovators like MCIT, Aramco, SABIC, KAUST, MISK and more. All of these entities are invited by the ministry to participate and collaborate to make LEAP one of the world’s most impactful emerging tech shows,” says Dawson.

Looking to the future, the role of technology is set to become ubiquitous, with its reach underlining progress, growth and innovation across all sectors.

“LEAP has been created to bring together the best thinking, ideas and emerging developments in technology in one place, to support the ongoing progress and success of different enterprises and the broader economy in the kingdom and the region,” emphasises Dawson.

With the kingdom having declared its grand tech ambitions to the world, it is now ready to take the leap into the next level: a bold new world awaits.

Flow of funds Spending on information and communication technology (ICT) in Saudi Arabia is rising

Software $1.4bn

SOURCE: INTERNATIONAL DATA CORPORATION (IDC)

gulfbusiness.com

Dr. Ahmed Altheneyan, deputy minister for Digital Capacities Development, MCIT Can you tell us how technology will play a part in developing Saudi Arabia’s future?

Perhaps I can illustrate it with two examples out of hundreds across government departments: The first one is NEOM. With NEOM, you have one of the greatest manmade projects in history, a tech-driven region that will include smart cities, ports and enterprise zones, research centres, sports and entertainment venues and tourist destinations.

Powered by renewable energy and ignited by breakthrough technology, it will be the home and workplace for more than a million citizens from around the world. The multibillion dollar project is underway and already the world’s leading technologists are engaged to ensure its successful outcome.

The second example is the MCIT Tech Industrial strategy, as part of which we are planning to ensure Saudi Arabia becomes a top-20 tech enabled economy by 2030.

We are yet to realise our full potential in technology, especially emerging technology, and so special measures are in place now to ensure this sector flourishes, especially so we can support the digitisation goals of Vision 2030 – for example a multi-billion dollar fund to pay towards the salaries of Saudis who are employed by tech companies that relocate or open offices in the kingdom, establishment of incubators to nurture and grow tech startups, and the launch of LEAP – a global event, bringing the best the world has to offer in tech.

Which technologies specifically do you see as the most impactful to Saudi’s transformation?

The ministry has identified the following seven technologies as having a game-changing impact on the transformation of the Saudi economy: 1. IoT and connected devices 2. Artificial intelligence 3. Big data analytics 4. 3D printing 5. Robotics and drones 6. Distributed ledgers 7. AR/VR

Overall spending on ICT $37bn

IT services $3.9bn

Fostering the tech of tomorrow

Our market value forecast for these alone is SAR60bn by 2030, to grow annually in double digits. We believe these technologies will have their biggest impact across

manufacturing, oil and gas, financial services, healthcare and government. Every government department is prioritising the use of technological innovations to transform the Saudi economy – for example PIF has a well-publicised $50bn fund dedicated to investing in emerging tech companies.

That should give some indication regarding the very serious ambitions we have in the near future.

Saudi Arabia is launching a new tech event called LEAP – can you tell us more about it?

MCIT and Informa Tech have launched the largest technology event in Saudi Arabia, and one of the largest that focuses purely on breakthrough technology in the world.

We partnered with Informa Tech to do this because they are responsible for delivering hundreds of the world’s most impactful tech events including AI Summit and Black Hat – and we have already built a fully dedicated, global team operating across seven countries to deliver this. The government has been mandated to help transform the kingdom’s economy and one of those aspects is to establish iconic and globally important events – LEAP is our answer to that for the technology sector and will help change the way we work and live forever.

Why should people attend LEAP? What do you hope it will help Saudi Arabia achieve?

LEAP is a co-ordinated project of national importance and will include innovators and buyers across public and private sectors.

It aims to bring pilot technology to Saudi Arabia first, so that we have the ability to purchase and adopt it before anywhere else. The event will attract over 30,000 technologists to Riyadh and include over 600 of the world’s thought leaders from enterprise, investment, government, academia and R&D. Held annually, it will become known as a special marketplace for tech companies, where they can come and have their breakthrough ideas invested in, rolled out and trialled by government entities and where they can establish a regional base which will have regulatory frameworks to allow them to flourish. It will help inspire a generation of Saudis to train and become programmers, engineers, scientists and to develop the emerging tech sector here in the kingdom.

July 2020 29

30 July 2020

gulfbusiness.com

PHOTO: KARIM SAHIB/AFP VIA GETTY IMAGES

FEATURES / ECONOMY

Time to unpause: How are regional offices reopening?

While the Covid-19 pandemic has far from subsided, governments globally and regionally have started lifting lockdowns and eased restrictions to help economies begin the process of recovery. With regional businesses now allowed to return back to offices, how are they handling the transition?

gulfbusiness.com

July 2020 31

FEATURES / ECONOMY

ENOC strives to fully restore its operations with the necessary preventative measures in place to instil confidence and drive growth while safeguarding our employees, customers and the community.

Saif Humaid Al Falasi Group CEO, ENOC

F

ollowing Dubai government directives, ENOC Group developed a detailed plan for returning to work. A staggered work plan was put in place to manage employees returning to work from our headquarters.

This started with allowing 50 per cent of the workforce to return to work from our offices on May 31. This was followed by a decision to have 100 per cent of our workforce return to work from our offices effective June 14. Special exemptions have been allowed for mothers, pregnant women, people of determination, people with chronic diseases and immune deficiencies, and elderly workers, allowing them to continue working from home.

A dedicated cross-functional task force, whose main objective is to identify the various preventative measures during and post the sterilisation period, has also been formed since the pandemic broke out.

Covid-19 has offered ENOC an opportunity to revisit work patterns. We believe employees that do not require a physical presence in the office can work remotely in the future, which in turn will benefit employees, enhance productivity, and thereby improve and streamline business operations.

“We believe employees that do not require a physical presence in the office can work remotely in the future” 32 July 2020

Nader Haffar

Chairman and CEO of KPMG in the Lower Gulf (UAE and Oman)

Les Male CEO, DGCX

W

e continue to closely monitor and follow all the guidelines set by the UAE government and the World Health Organization to ensure the safety and wellbeing of our employees. Currently, the DGCX Group is gradually returning to the office, and we are constantly assessing the new working environment, adapting as necessary as we move forward. We are following stringent safety protocols, including mandatory social distancing between work stations and a thorough daily deep clean and weekly sanitisation of our offices.

Despite the initial challenges, the transition to working remotely was hugely successful, and we continued to operate normally across both the exchange and clearing house.

The last few months have actually been a particularly busy period for us, as we partnered with Albilad Capital in Saudi Arabia to provide pricing data for the recently launched shari’ah compliant goldbacked ETF and developed new products.

We are also working on the soon-to-belaunched FX rolling contracts to support our members during these volatile times.

Undoubtedly, many challenges still lie ahead, but as we enter a post-pandemic world, I firmly believe that the DGCX Group and the UAE will emerge even stronger than before.

W

e are planning a gradual, controlled and phased return to our offices. Until then, large-scale remote working will remain the norm. There will be strict controls in place reflecting government regulations and recommendations. Social distancing measures will be applied and will determine how many people can be in the office at any given time.

“Our priority is to safeguard our peoples’ wellbeing and we are in dialogue with clients to assess safety protocols” Remote working has been a success for us, thanks to our business continuity plan, our capable IT infrastructure, our colleagues’ ability to adapt, and the goodwill of our clients who have been equally agile and supportive.

At the same time, as a professional services firm, being with clients is where we make the biggest impact, and we are beginning to visit their offices. Our priority is to safeguard our peoples’ wellbeing and we are in dialogue with clients to assess safety protocols. No colleague is being asked to visit a client unless we are comfortable gulfbusiness.com

FEATURES / ECONOMY

with the precautionary measures and we are confident that the necessary hygiene equipment is available.

While we are hopeful, no one knows when the pandemic will end. By focusing on the health and wellbeing of our colleagues and our clients, and continuing to accomplish our business commitments, we have established a culture that will carry us through these trying times.

per site or country and is usually made in coordination with local authorities.

There is near-term uncertainty around sales volumes due to Covid-19 and the macroeconomic situation, but with current visibility we have no reason to change our financial targets for 2020 and 2022.

Ericsson has delivered a solid result during the first quarter of 2020, with limited impact from the pandemic.

“We are expecting a slow and gradual return to normality in the second half of 2020” Our mall management offices are working at normal operating hours while adhering to the social distancing guidelines and operating protocols. Introducing more flexibility into our corporate culture, we have also integrated selective remote working. It is here to stay and will become an integral part of the way we work.

We are expecting a slow and gradual return to normality in the second half of 2020. We will continue to work closely with the authorities to enhance customer and market confidence.

Wojciech Bajda

Benoy Kurien

E

T

Head of Ericsson GCC

ricsson offices in the GCC are closed until further notice.

There are protocols in place to deal with various issues that our company may face, to ensure both the health and safety of our employees and to minimise impact on our operations. In order to ensure a safe, productive work environment for employees, Ericsson has established specific protective measures including (but not limited to): physical distancing, relevant signage, disposal and sanitation measures to be followed in the office as soon as it reopens in line with government legislation and guidelines.

During normal circumstances, most of Ericsson’s office workers have successfully had the opportunity to work remotely.

Decisions about recommending or requiring employees to work remotely are made

Group CEO, Al Hamra he easing of restrictions in Ras Al Khaimah to operate malls has been welcomed by shoppers, and we have recorded a significant increase in footfall at our two shopping malls – Al Hamra Mall and Manar Mall.

We have worked closely with our tenants to ensure they provide customers with a safe and comfortable shopping and dining experience. We have initiated a phased reopening with 20-30 stores opening on a daily basis since the beginning of June 2020. The malls are now almost fully operational. The comprehensive set of precautionary measures that we have deployed will reassure our visitors, tenants and employees that their health, safety and wellbeing is of paramount importance and our priority.

“Decisions about recommending or requiring employees to work remotely are made per site or country and is usually made in coordination with local authorities” gulfbusiness.com

Joerg Hildebrandt

Managing director and senior partner, BCG

W

e have opted for a gradual resumption of office activities. Our business model and technology infrastructure give us the opportunity to continue operating at lower attendance levels for longer. We’ve segmented our office into multiple zones to further minimise virus transmission risks wherever possible. Staff are required to stay within their designated zones at all times and are working on a rotation basis (Team A/B) to keep attendance levels low. We conduct deep cleaning of all surfaces and floors, while everyone is required to wear a mask July 2020 33

FEATURES / ECONOMY

at all times and contactless sanitisers are available throughout the office. We keep close track of who is in the office, where and when, so we can quickly respond in case of an infection and prevent further spread.

As a consulting firm, our teams are accustomed to spending more days in our clients’ office than our own. Hence, we were very well setup to support our staff working from outside the office. While working remotely, both our clients and us have quickly learned how to adapt to this model and with great success.

Like any other business, we had to make changes to the way we work. Regardless of these changes, and with the reopening of the economy, we are pleased to see a positive shift in business opportunities and a greater sense of optimism.

We are playing a unique and critical role in the fight against Covid-19 and it’s a responsibility we take seriously. As industries reopen in this resource-constrained environment, we have been closely working with distributors and governments to ensure secure supply chains.

We remain optimistic in our outlook and expect the increased flexibility brought on by necessity to stay on as part of the new normal here-on-in, with an increasingly safe work environment for our employees.

we can to ensure that people can work at their best, wherever they may be.

We’ve put in a range of practices to ensure that the office is a healthy and safe environment. For example, to ensure that we monitor the number of employees coming to the office, everyone must apply the day before for approval to come to the office and work from here, myself included. We introduced remote working into the Gulf region several years back, so the transition for the team has been easier than for firms where remote working hasn’t been an option.

Business-wise, there’s now more optimism amongst our channel partners – they’re keen to get back to work and reengage with customers. There’s much more focus on digital transformation, which I’m happy to see. The GCC is the most resilient region I’ve ever worked in. The region has adapted over and over again and I’m confident that we will overcome and endure, and that the region will transition to economies that are built around technology and innovation.

Ahmed Khashan

President – GCC and Pakistan, Schneider Electric

Robert Nichols

Managing director, 3M MEA

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afeguarding employees’ wellbeing is paramount because no plan to resume normal operations can succeed without them. For 3M, the focus is on getting employees who really need to be in the office or on the factory floor back into the building as soon as we have satisfactorily taken recommended safety and practical measures in close alignment with government and regulatory guidance. Stringent cleaning, medical screening, staggered shifts and increased signage to ensure social distancing are in place across our offices. We also provide face coverings to all employees.

Many of our administrative and officebased workforce will continue to have the option to work from home: 3M’s approach to bringing our workforce back on-site places an emphasis on flexibility.

34 July 2020

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e are slowly, carefully reopening our offices in the GCC, in line with governmental guidelines on safe working practices including mask wearing, hand washing and social distancing. We’re also taking into account the feelings of our employees. Some miss the physical interaction with their colleagues, while others are more comfortable with remote working right now. We’re doing all

“The GCC is the most resilient region I’ve ever worked in.

It has adapted over and over again and I’m confident that we will overcome and endure”

Ayman El Hout CEO, Marsh UAE

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e have been very fortunate that we have been able to operate remotely with minimal to no disruption to our services. We have decided that a gradual move back to the office is the ideal reopening strategy.

We have adjusted our workplace to ensure the welfare of our colleagues, implementing social distancing, opening floors where minimal access to elevators is required and providing the returning colleagues with all the necessary protective material they need. gulfbusiness.com

FEATURES / ECONOMY

“The market has gained positive traction following the opening of the economy.

Demand for homes is gradually returning”

We expect this to extend into July, and will continue to monitor as the situation evolves. We have also gained new perspectives in terms of team collaboration, communication, trust and adaptability. We have ensured open communication channels with all our staff and seen engagement levels rise as we leverage existing technology to maintain close contact.

Given this, we will continue to promote effective flexible work arrangements, incorporating telecommuting where desired. With digitalisation as a core agenda in the group’s 2025 strategy, we will partly invest in our IT infrastructure to enhance the remote working experience.

There is no doubt that the Covid-19 pandemic will profoundly reshape the concept of the office in the future. Many businesses globally have already been moving towards promoting flexible working policies and remote working opportunities, but for sure, 2020 will expedite the prevalence of such policies, making the office more of a place to collaborate and interact with others supporting organisational culture, rather than to work.

Due to the nature of our business as an insurance and risk management consultant, we have been working closely and providing advice and support to our clients on how best to respond, recover and rebound from the effects of the pandemic.

We are seeing ‘green shoots’ of opportunities. The region is resilient. Businesses who have the ability to reimagine their operating models and portfolio of offerings will find opportunities in this new world.

sanitiser dispensers widely available, in addition to frequent and thorough disinfecting of common facilities and amenities.

We do not see work-from-home as the norm in doing business in the days ahead.

Flexible and remote working for certain job roles is a welcome option provided productivity is not affected. The office building will continue to remain the foundation of our professional lives.

The market has gained positive traction following the opening of the economy. We have clients visiting us to evaluate the progress of projects and demand for homes is gradually returning as people look at longterm investments.

This is more so given the UAE and Dubai being lauded globally for the effective measures it took to address the pandemic.

We are confident that the economy will gain strength in the days ahead, especially as the travel sector reopens.

Paula Wehbeh

Eva Mattheeussen

Folasade Olashore

W

W

O

Head of Strategy, Ellington Properties hile we have been serving our customers and working remotely, we have now reopened our offices and currently operate at less than 100 per cent capacity with only essential staff. As part of the safety protocols, we are checking the temperature of everyone who enters the office and have made hand gulfbusiness.com

Head of HR – Middle East and Africa, DHL Global Forwarding here possible, our colleagues have been remote working for the past few months. As part of the first phase of reopening, we have designated employees into two teams and staggered their time in the office.

Employees will only return on a need-be basis as approved by their line managers.

“Our intent is to ensure a safe and healthy work environment in the office for employees that choose to work from office”

HR director – India, Middle East and Africa, P&G ur communities have been through a lot over the last few months, and all of us are looking forward to reuniting with our colleagues and reinventing our new normal. Our intent is to ensure a safe and healthy work environment in the office for employees that choose to work from the office while maintaining the same level July 2020 35

FEATURES / ECONOMY

of personal flexibility that we all need during this period of transition into the new normal.

We recognise that personal challenges continue to remain in this challenging time, like home schooling, vulnerable or at-risk family members, which is why flexibility is paramount for our employees.

We are reopening our office at limited occupancy from mid-June until end-September.

We will continue to give employees the flexibility to work from home if they need to for personal reasons or if they, or their direct family members, fall in high-risk categories.

Every person entering the office is expected to wear a mask and temperature checks will be performed with a contactless thermometer upon their arrival and upon their exit.

We encourage our employees to meet virtually whenever possible.

All workstations and meeting rooms also undergo rigorous disinfection throughout the day and bathrooms are disinfected after use.

All employees have received a personal protective equipment (PPE) kit to help protect them at home and work while we transition to a new and better normal.

Despo Michaelides

Chief HR and diversity officer, AXA Gulf

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fter evaluating the maximum number of employees that could be accommodated in each office to ensure social distancing, we gradually managed the return to office, in line with the UAE authorities’ guidelines.

36 July 2020

“We have seen an increase in the footfall of our branches across the UAE but we are available at all touchpoints for those that do not feel comfortable in public spaces” We propose complimentary mobility services to avoid staff taking public transport and we provided private furnished accommodation to contractors who may be at risk of exposure. We have created a comprehensive guide including all safety measures put in place to prepare staff for their return to office.

Our AXA Wellbeing programme gives our staff access to a 24-hour mental health teleconsultation service and 22 in-house mental health first aiders trained to support their colleagues.

We have already seen an increase in the footfall of our branches across the UAE but we are available at all touchpoints for those customers that do not feel comfortable going out in public spaces.

Through our online and call centre platforms, customers can purchase, renew and claim all of our products from the comfort of their homes.

David Moloto

HR director – MENA, Nestlé

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ur frontliners in the factories, warehouses and sales have continued to provide needed foods and beverages throughout the entire Covid-19 pandemic. Other employees have started to come back to the office. Our approach to return to the office is gradual and phased, while ensuring

employee health and safety. Nestlé premises has started reopening since the first week of June with a maximum of 30 per cent capacity and will gradually increase in the months to come.

We have added some new health and safety protocols and measures to our workplace such as putting in place temperature screening machines and new enhanced routines of daily deep cleaning of meeting rooms and workstations.

Employees with underlying health conditions like heart disease, immune system weakness or any other serious respiratory illness are asked to work from home for the time being in alignment with our medical experts.

Given the current situation, and the closure of schools during this period, our employees are still able to continue to work from home.

We all know that the post-Covid world will look very different and that includes more flexible working arrangements, a greater shift towards remote working, more agility at work, alternative ways of doing meetings and connecting remotely as we are seeing now through video conferencing platforms.

“The post-Covid world will look very different and that includes more flexible working arrangements and a greater shift towards remote working”

gulfbusiness.com

FEATURES / TECHNOLOGY

How digitisation will help

THE OIL AND GAS INDUSTRY

Deploying technological tools will help regional oil and gas operators improve worker health and safety and innovate to find new solutions

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he Covid-19 pandemic has served as a sharp reminder to various industries in the Middle East of the benefits of having a strong digital transformation strategy to ensure business continuity. This is especially the case for the oil and gas sector, which remains a pillar of many national economies in the region. As a result of both Covid-19 and a subsequent drop in oil prices, the existing sector challenges of price volatility, operational costs, workforce shortages, safety, and environmental pressures have increased.

There have been regional energy companies — particularly those in the oil and gas arena — who have been embracing digitisation in recent years. Their transformation is commendable, and a testament to how technology can help preserve business success. According to one whitepaper released by the World Economic Forum, digital transformation could unlock more than $1.6 trillion in new value for the global oil and gas industry between 2017 - 2027.

Nevertheless, the oil and gas industry as a whole still has room for more digitisation.

The world’s demand for energy is only going to increase over the long-term, and that will require new tools to be deployed.

In today’s environment, there is an enormous opportunity for oil and gas companies to revitalise themselves and to push for real gains as the economy recovers from the effects of Covid-19. The industry should

Alaa Elshimy, managing director and senior vice president, Huawei Enterprise Business Group, Middle East

convert its challenges into opportunities for the future, and take this moment to help revolutionise the energy sector overall. That includes investing in advanced technologies to improve operational activities, enhancing their health and safety plans, and bolstering exploration and production.

On an operational level, leveraging emerging technologies such as AI and IoT can further enable real-time equipment and environmental-conditions monitoring, while also providing transparency and greater control over processes. That will ultimately

Technologies such as AI and IoT can further enable real-time equipment and environmental-conditions monitoring gulfbusiness.com

boost efficiencies. Through deeper ICT-led automation, companies’ operations can also be maintained and can continue to be productive even when dealing with a shrinking workforce. This will prove especially beneficial for business continuity as public health policies around Covid-19 evolve, aimed at protecting the health of human resources.

Speaking of human resources, the oil and gas industry still very much depends on people. Using digital tools to safeguard your workforce’s health and safety must remain a top priority. Through advances in IoT, we can now make it possible to use a single, function-rich terminal for more effective inspection as well as audio and video communication. Precise tracking of personnel and assets in turn improves dispatch and command efficiencies.

In addition to operational activities, today’s high-performance computing solutions are also a strategic advantage in the race to discover oil. Mass information must be rapidly processed to accelerate decisionmaking. Holistic solutions that integrate a company’s hardware, systems, and cluster management, are now available to decrease the average service processing period from hours to minutes, and decrease the service processing error rate by more than half. This is increasingly valuable as companies make exploration decisions based on an enormous body of seismic and other geological survey data, whether onshore or offshore.

Given today’s market challenges, nobody is under any illusions anymore. You either innovate or you disappear. Covid-19 has brought added pressure to this need for digital transformation in the oil and gas sector. The good news is that there are ample opportunities to use digitisation to regain momentum in this recovery period, and right now, there is no time to waste.

July 2020 37

BRAND VIEW

Why it’s never too late to start investing Investing requires a long-term approach to yield better results, opines entrepreneur and investor Shailesh Dash, who shares his market perspective in this monthly column

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raditional knowledge and practices for working with money have evolved over generations, especially those that involve saving and investing. Saving is generally the first step towards financial planning, however, investing a certain portion of the money saved leads to wealth creation in the long-term.

The perception of ‘investing’, which was historically restricted to only the affluent class, has now become a reality for the common man, thanks to digital technology and an emerging number of investment instruments.

Investing has also become easy and accessible through the evolution of fintech services as they offer advisory services along with secure options based on financial goals. Time horizon and risk tolerance are two key characteristics of investing and building robust portfolios.

Moreover, long-term investing, coupled with diversification of portfolios, are generally the first line of defence in reducing investment risk. These characteristics also enable the investment portfolio to navigate through unprecedented events or economic recessions/ depressions.

Investment gurus or financial advisors have always emphasised investing early in life to reap the benefits of compounding wealth. However, one can start investing any time as it is never too late.

Retail investors are concerned about the concept of investing, especially the fear of losing the principal amount. Wealth protection is an important concept in investing, and thankfully it can be mitigated by diversification across various asset classes, geographies and industries. Regardless of the strategy adopted by an investor, the duration is an important parameter in building wealth, while reducing the overall risk and volatility of the portfolio.

The tech impact The advent of technology has had a profound impact on every aspect of our lives. Consumers today prefer the convenience of managing everything online, which is primarily the reason for digital transformation within the global financial services industry. As a result, this has changed the face of investing, which is now easy and accessible to everyone. Online trading was introduced

by banks and other financial institutions to expedite and streamline the transacting experience. The success of online trading encouraged traditional financial institutions to offer similar services to other asset classes.

Meanwhile, the wealth management industry continued operating in the traditional way since it was limited to the affluent class. However, the evolution of fintech firms transformed the wealth management industry by eliminating the need of human intervention with cost friendly fee structures. Hence, today, an individual can easily open an account with zero balance on any of the digital platforms to start investing with no minimum investment criteria.

“The perception of ‘investing’, which was historically restricted to only the affluent class, has now become a reality for the common man”

Points to consider

One of the key considerations of investing is determining the appropriate allocation strategy, which is dependent on three factors – investment objective, risk tolerance and time horizon. A typical allocation would include traditional asset classes, namely equities, fixed income and money market instruments. A risk-averse or conservative investor would ideally prefer to invest in low risk instruments to protect principal, such as dividend paying stocks or municipal/government bonds. On the other hand, a risk-taking investor would prefer higher returns with a justified level of risk.

Another important risk mitigation strategy is portfolio diversification, which can be done by investing in other geographies and industries. A sophisticated investor could further diversify through alternative asset classes, thereby improving the overall risk-return characteristics of the portfolio. Once we have an optimal asset allocation strategy, it will enable us to weather the ups and downs of the market, such as the uncertainties we are experiencing now due to Covid-19 and the global financial crisis in 2008.

For instance, an analysis of asset class performance during the past two decades clearly indicates that a diversified portfolio generates healthy returns with an

“Today’s smart investors have realised the importance of using their savings to invest for a secure financial future” Clearly, the investment strategy indicates a staggering difference in values over the long-term. Hence, it is important to understand the risk and reward of investing and accordingly select a strategy that would help in maximising returns. Although this is a simple example, these cases do illustrate the compounding effect of investing by varying levels of risk.

Limitations to keep in mind

appropriate level of risk. To understand this better, let us consider three investment cases with an annual investment of $12,000 for a period of 25 years.

In case A, we have a traditional style of savings/investing, which is 100 per cent into fixed deposits/savings at an average rate of 2.5 per cent per annum.

In case B, we have a balanced portfolio for a low risk or risk-averse individual with 50:40:10 split between equities, bonds and gold.

In case C, we have a dynamic portfolio for a calculated risk-taker with 70:10:10:10 split between equities, fixed income, private equity/hedge fund and gold.

Based on the above assumptions, the investment values under the three cases would have grown to $0.42m for case A, $0.69m for case B and $1.29m for case C.

Shailesh Dash

Now that we have established the importance and the process of investing, it is equally important to understand the limitations and the way forward. Firstly, an investment strategy often requires long-term commitment and discipline, and liquidation at any interval could be detrimental to the portfolio. Secondly, in a rapidly changing economic landscape, it is always advisable to rebalance the portfolio strategy to align with new realities. It might be prudent to seek the services of professional managers while re-allocating in unprecedented times like the current one and the global financial crisis in 2008.

Although the fee structure could be on the higher side compared to digital platforms, the professional advice is often worth the money spent.

Today’s smart investors have realised the importance of using their savings to invest for a secure financial future. In investing, it is important to focus on what we can control, such as setting up a sound financial plan, a realistic target, adequate protection, proper diversification, and a commitment to a long-term strategy to achieve our goals.

Moreover, an investment plan should not be reduced to a single strategy – it is wise to diversify across assets and geographies, depending on your risk profile and financial goals. Time invested is more important than timing the market, hence one needs to be invested for a longer period of time to build wealth and enjoy financial freedom. I will be making such recommendations every month on various strategies to benefit investors.

Disclaimer: This column is purely for academic and educational purposes. Nothing mentioned here should be taken as solicitation to trade or a recommendation of a specific trade.

FEATURES / GULF BUSINESS ACADEMY

MANAGING CHANGE SUCCESSFULLY Leaders have the responsibility of ensuring that employees are able to smoothly transition back to offices

By Mark Dickinson

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ockdowns gave us something that we may never have had in our lives before, and may never have again. Some of us had the opportunity to be alone, thoughtful and introspective, and to re-evaluate life, learn, and rest extensively.

Many people experienced a fascinating journey of personal growth throughout the lockdown period and are coming back to work rather like they have been awakened in the middle of deep sleep. In reality, what has happened is that our brains adapted to a new way of living, replacing the old work routines with new and stimulating activities. Even those who had a deeply negative effect from the lockdown had a break from ‘life as usual’, and they have been forced to adapt. Everyone has changed.

As we come back to the workplace, we are going to experience withdrawal symptoms. What was once familiar territory, will now appear to have become a new lifestyle. We must learn to let go of the feeling of loss of all that was, and embrace what the new normal looks like.

40 July 2020

Some of the people used the additional time they had during the lockdown to exponentially grow themselves. Those who studied, read and learned new things will now expect a new approach at work, and if they do not find it, they will start to feel restless and seek out new opportunities elsewhere; especially if they return to a dry and dull work environment that reflects what they hope had been left behind.

The Covid-19 pandemic has heightened people’s awareness that life can be very different (from what was) and still be productive. It has shown some people that they can be effective without someone breathing down their necks. It has also revealed that workers are quite happy to get on and produce good results without anyone telling them what to do.

The biggest challenge post lockdown is for managers and leaders to learn how to adapt to their teams’ needs.

At the top of the management to-do-list must be a thorough discussion with each member of staff. Managers would do well to schedule one-on-one sessions with each of their team members as they return to the work environment, and listen to their experience of the lockdown. An important thing to keep in mind is to follow the ‘STAL’ principle – ‘Stop Talking And Listen’. Ask the right questions to understand what team members are experiencing while also getting a perspective on their expectations.

Important questions to ask: • What did you do during the lockdown?

• What was your highpoint?

• What was your biggest challenge?

• What did you learn?

• How do you feel about coming back to the office/workplace?

• What would you like us to do differently or better than before?

• What would you like us to stop doing?

• What would you like us to do for you?

• How happy are you to be back?

Managers must create a new work environment with greater latitude, more engagement and inclusion. The majority of employees want to feel secure, and that comes from knowing that they are doing a good job and are appreciated. Once they feel reassured about this, then they are up for growth.

Think of it like this, if you invest in your people and they grow, they will work more efficiently and you will have better results. Those improved results will in turn lead to a more profitable business.

Managers must think through these issues before they get too caught up with “business as usual”. The window of time in which this can be done is short, and hence this process must be done quickly and effectively without making a big show about it. The approach must be simple and straightforward, with gulfbusiness.com

ILLUSTRATION: GETTY IMAGES/BOBMADBOB

a genuine interest to figure out what the team wants.

Underlying this must be an unbiased self-examination by managers about how they are running the business. Managers should answer these questions and make sure that they are personally ready to take things to the next level.

• Am I managing my people for their success?

• Am I creating a system that makes doing business consistently easier?

• Am I inspiring my team members to feel their personal contribution makes a difference around here? gulfbusiness.com

• Am I encouraging everyone to grow and learn new things?

• Am I fostering a culture of openness and transparency?

• Do I celebrate the greatness in them?

Personal growth must never come second, not for the managers, nor for their people. The reality is that business leaders and managers can create an inspiring workplace by being inspirational.

July 2020 41

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S P E C I A L R E P O RT

MENA’S TECH LEADERS

ILLUSTRATION: GETTY IMAGES/ANDRIY ONUFRIYENKO

SPECIAL REPORT

Heralding the tech era

BY AARTI NAGRAJ

Technologies such as AI are shifting the way the world works, with the Middle East region striving to be at the forefront of this new era. As public and private sector organisations embark on digital transformation strategies, we highlight the regional executives leading this technological revolution

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igital transformation is no longer a clichéd term used at events – it’s the reality for public and private sector organisations in the Middle East, especially in the Covid-19 era. The pandemic has further propelled organisations to rapidly streamline and restructure their digital policies to ensure business continuity as remote working has become more commonplace amidst health-related restrictions.

IT spending in the Middle East and North Africa (MENA) is expected to total $160bn in 2020, an increase of 2.4 per cent from 2019, tech consultancy Gartner said in a March report.

Businesses in MENA are anticipated to increase their IT budgets across all segments, the report stated.

“Non-oil economic initiatives such as the Dubai Expo; the Al Qiddiya entertainment, sports and arts complex; The Red Sea Project and NEOM in Saudi Arabia are boosting business activity in MENA, which will heavily influence IT spending locally,” said John-David Lovelock, vice-president at Gartner.

Another report by IDC released in January found that investments in digital transformation and innovation will account for 30 per cent of all IT spending in the Middle East, Turkey, and Africa by 2024, up from 18 per cent in 2018.

Government enterprise IT spending is increasing at a compound annual growth rate of 5.7 per cent and will top $8bn in 2021, while spending on artificial intelligence (AI) will top $600m in 2023, doubling from 2018 levels.

“The digital economy is at a critical tipping point. In just a few short years, IDC forecasts that nearly half of all GDP worldwide will come from products and services offered by digitally transformed organisations,” said IDC’s chief research officer Meredith Whalen.

As local organisations continue to invest more resources and allocate more of their IT budgets on digital transformation initiatives, dependence on technology consulting will also increase. In 2020, IT services spending is expected to total $13.1bn, an 8.4 per cent increase year over year, according to the Gartner report. The level of spending on IT services in MENA is the fourth highest in the world – after greater China, emerging Asia/Pacific and Latin America, the report added.

Growing demand for technology providers has led to a proliferation of players in the market – from established global multinationals to smaller homegrown companies – offering services ranging from end-to-end solutions and niche IT products to consumer tech platforms.

Among the bigger players in the market, companies that identified the potential of the MENA region early on have now managed to establish a strong footprint in the region and are continuing to invest in growing their presence.

In our special report this month, we have highlighted 10 leading executives from top global technology companies that have a significant presence in the MENA region and are investing heavily in expanding operations.

We have also looked at leaders within industry verticals who are spearheading the region’s technology revolution.

ICON BY TEMPLATE FROM THE NOUN PROJECT. ILLUSTRATION: GETTY IMAGES/YAROSLAV KUSHTA

SPECIAL REPORT

TOP 10 TECH EXECUTIVES IN THE MENA REGION (Names arranged in no specific order)

Samer Abu Ltaif

Abdul Rahman Al Thehaiban

Takreem El Tohamy

President, Microsoft Middle East and Africa

Senior vice president, Technology, MEA and CEE, Oracle

General manager, IBM Middle East and Africa

Microsoft has been vocal about its focus on this region – last year, the company opened its first regional data centres in the UAE and last month, in a virtual event, it also inaugurated a new centre of excellence for energy in Dubai. Launched in collaboration with 10 founding partners, the facility aims to accelerate digital transformation, build coalitions for responsible innovation and drive skilling initiatives in the energy sector. The aim is to drive “positive impact in our communities” said Samer Abu Ltaif, who has been head of the MEA region for Microsoft since February 2017. Having joined Microsoft in 2004, Abu Ltaif has held several senior roles and previously served as the general manager of Microsoft Gulf, where he led landmark initiatives to support governments, revolutionise education and stimulate SME growth and entrepreneurship.

Having lived through war in Lebanon, Abu Ltaif has come a long way and has since emerged as one of the key executives driving the region’s digital agenda.

“The UAE is a priority market for Oracle and we have made significant investments to enhance our infrastructure, physical presence, human resources and other support capabilities in the country,” Steve Daheb, global senior vice president of Oracle Cloud told Gulf Business earlier this year. Having opened two cloud data centres in the UAE last year and one in Saudi Arabia this year, the tech company has made clear its intentions of growing its presence in the region. And leading this is Abdul Rahman Al Thehaiban, senior vice president – Technology for Oracle in the MEA and CEE region. Having joined Oracle in 1996 as sales director for the Saudi Arabia operation, Al Thehaiban helped propel the kingdom among the top revenue earning countries in the Middle East for Oracle. He was appointed to his current position in 2016. He also serves as an executive board member of the Young Arab Leaders (YAL) group and is a member of the Sawa’ed mentoring programme of the Sheikh Mohammed Bin Rashid Al Maktoum Foundation.

In January, global tech giant IBM became the latest to launch two data centres in the UAE. Located in Dubai and Abu Dhabi, the centres will help companies “shift to a hybrid cloud model”, the US-based company said.

The company has also been expanding in other parts of the region – in July, it launched two new regional centres in Egyptian capital Cairo – including an innovation and industry client centre and a MENA marketing services centre to aid the country’s digital transformation agenda. Launching the centres, Takreem El Tohamy, general manager IBM Middle East and Africa, stressed that the company, which has been in the region for “almost a century”, is looking to boost local research to develop solutions to the region’s challenges. An IBM veteran, El Tohamy, who joined the company in 1984, has been at the helm of regional operations since 2005. A man with strong connections, he was re-appointed to the US President’s Advisory Council on Doing Business in Africa in September last year.

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SPECIAL REPORT

“Dubai has become the ‘Silicon Valley’ of the Middle East” SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME M I N I S T E R O F T H E U A E A N D RU L E R O F DU BA I

Charles Yang

Mohammed Amin

Reem Asaad

President, Huawei Middle East

Senior vice president, Middle East, Turkey and Africa, Dell EMC

Vice president, Middle East and Africa, Cisco

One company that has been spearheading the rollout of 5G infrastructure – despite facing controversy in some parts of the world – is Huawei. Regionally, the company has launched the Middle East’s first multi-tenant Internet of Things (IoT) hosting centre to accelerate IoT business development and has also opened joint innovation centres for technologies research in Saudi Arabia and the UAE. Spearheading its aggressive regional growth is Huawei’s Middle East president Charles Yang. Having joined Huawei in 1999, Yang has held a number of senior positions in the company. In his current role, which he took on in 2015, Yang oversees Huawei’s carrier, enterprise and consumer business group activities in the region, encompassing around 5,000 employees. Overseeing its growth in emerging technologies across 5G, AI, big data, IoT and cloud computing, Yang was also instrumental in bringing Huawei’s global ICT competition — which aims to support local ICT talent — to the region for the first time in 2017.

The ‘future of work’ has gained significant traction during the current pandemic, with organisations in the region – similar to their global peers – attempting to cognise new ways of working using advanced technologies.

One company taking a lead in this area is US-based tech firm Dell EMC, which offers digital transformation solutions to clients. The man leading regional operations, Mohammed Amin, is a wellknown face in the regional tech scene, having been a vocal advocate of digitisation and technology adoption for several years now. Before the historic merger of Dell and EMC in September 2016, he spent 10 years at EMC, driving its growth in the region. Prior to that, Amin held management positions with major hardware and networking vendors. He is now also playing a key role in education and training for the future – in September 2018, Amin signed a deal with the UAE Minister of State for AI, Omar bin Sultan Al Olama, as part of which Dell EMC pledged to train 500 Emirati students under a specialised AI programme set to run for three years.

In March, Cisco signed a multi-million-dollar advisory agreement with Saudi’s Red Sea Development Company to design a smart destination services platform and ICT master plan for the mega tourism and hospitality Red Sea project. Meanwhile, as the official digital network partner of Expo 2020 Dubai, Cisco has been working closely with the entity since 2018, achieving a number of technological milestones, including successful wide-scale deployment of its intent-based network at the expo site in September. As the company expands its regional remit, leading its next stage of development will be Reem Asaad, who was appointed as its new vice president for the MEA region in February. With over 20 years’ experience across the tech, finance and customer experience space, Asaad previously served as CEO of Raya Contact Center, a business process outsourcing service provider based in Cairo. In her new role, she will focus on strengthening collaborations with governments, customers and partners to accelerate their digital agenda.

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SPECIAL REPORT

ILLUSTRATION: GETTY IMAGES/BOBMADBOB

<!>

Fadi Pharaon President, Ericsson Middle East and Africa

The deployment of the 5G network is expected to reach 80 million subscriptions in the Middle East and North Africa region by 2025, representing 10 per cent of total mobile subscriptions, Ericsson revealed in a report last month. Ericsson has been one of the major players in the region leading the move to the new network, having

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partnered with UAE telecoms operator Etisalat to deploy 5G across the country. The man at the helm of regional operations is Fadi Pharaon, senior vice president and regional head of MEA. Having joined Ericsson in 1998, Pharaon has held several leadership roles in the company across the world and took on his current role last year.

Also serving as a member of Ericssonâ&#x20AC;&#x2122;s executive team, he reports directly to the CEO.

SPECIAL REPORT Reaching new peaks

$156.5bn

$160.2bn 140

Businesses in MENA are expected to increase their IT budgets across all segments in 2020

120

100

2019

2020 SOURCE: GARTNER, INC.

Lino Cattaruzzi

Ronaldo Mouchawar

Ramez Shehadi

Managing director, Google MENA

Vice president, Amazon MENA

Managing director, Facebook MENA

In 2019 alone, Google announced plans to strengthen its presence in Egypt; launched its Assistant service in Arabic in December; and introduced YouTube’s music streaming services across the MENA market. That Google – part of Alphabet, one of the biggest technology companies in the world by market capitalisation, is expanding its remit in the region is not surprising. The Middle East, particularly Saudi Arabia, is among the most lucrative markets for its video platform YouTube. In March, Google Cloud Platform also signed an agreement to launch in the Middle East, with a new cloud region in Doha.

As Google MENA’s managing director, Lino Cattaruzzi, who has been in the role since early 2017, is tasked with driving its regional development. His efforts are focused on enabling local business partners boost growth online and helping the wider digital ecosystem through scalable programmes and initiatives. Previously country director for Google in Mexico and Argentina, Cattaruzzi also worked with AOL Latin America in senior roles.

The news of Amazon acquiring Dubaibased e-commerce site Souq for an estimated $580m in 2017 made global headlines. And since its official entry into the region, Amazon has been rapidly expanding. The company has reportedly boosted its workforce by 30 per cent since March to meet growing demand for e-commerce, while Souq Saudi also officially rebranded as Amazon last month. Meanwhile, Amazon Web Services (AWS), which offers cloud storage facilities, opened three data centres in Bahrain last year, marking its entry into the Middle East region. Some of AWS’ clients in the region include Dubizzle, Anghami, flydubai and Fetchr. The man leading the company’s expansion in the region across all segments is veteran Ronaldo Mouchawar, who founded Souq.com in 2005 and expanded it across the UAE, Saudi Arabia and Egypt. Hailed as one of the region’s entrepreneurial success stories, Mouchawar earlier worked with Maktoob – the first Arabic/English email service provider that was sold to Yahoo! for $164m in 2009.

While not part of the traditional IT industry, it is hard not to acknowledge the growing clout of social media platform Facebook in the tech industry. Facebook is the most used social media platform in the UAE (eight million active users), Kuwait (2.7 million active users) and Egypt (38 million active users), a recent report by Dubaibased data intelligence firm Crowd Analyzer found. Boosting its expansion in the region through its growing portfolio of apps, services and businesses is Facebook MENA MD Ramez Shehadi, who was appointed to the role in late 2018. With a background in consulting, Shehadi has expertise in establishing, scaling and running cross-industry portfolios. He was earlier senior partner and managing director, MENA at Booz Allen Hamilton, lead partner of the MENA Digital Business and Technology practice at Booz & Company and global co-lead of Booz Digital. While taking on his role at Facebook, he stressed that he would focus on ensuring that the MENA market remains prioritised and a source of information globally.

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SPECIAL REPORT

Leading the charge FACES TO WATCH: DIGITAL TRANSFORMATION With digital transformation becoming a requisite for public and private sector entities across the region, the regional market has seen a plethora of providers offering comprehensive solutions

Gonzalo Usandizaga

Khaled Al Melhi

Vice president and general manager, Emerging Markets, Micro Focus

CEO, Injazat Data Systems

One company that has been flexible with its approach to offering digital transformation solutions is UK-based Micro Focus, with the company rapidly growing its presence across the Middle East. Heading the company’s interests across emerging markets – covering the Middle East and Africa is Gonzalo Usandizaga, who has been in the role since 2017, after Micro Focus’ merger with Hewlett Packard Enterprise.

Usandizaga, an IT veteran, held several senior roles in HP since 2008, prior to which he worked with US-based Vignette, IBM and Software AG.

A prime example of the UAE’s homegrown expertise, Injazat, fully owned

by Abu Dhabi investment arm Mubadala, is rapidly growing its reach in the region, offering services across the digital transformation journey.

Last month the company also opened a Cyber Fusion Centre in Abu Dhabi to expand its cyber security services. Leading the firm is Khalid Al Melhi, who was appointed CEO in 2017. Melhi, who previously held the role of Injazat’s chairman, also served as the CEO of mapping and geospatial services company Bayanat, a subsidiary of the Emirates Defence Industries Company.

Mark Ackerman

Sahem Azzam

Senior director – Middle East and Africa, ServiceNow

Vice president - Middle East and Africa, Orange Business Services

Managing employee health and workplace safety has become the top priority for organisations regionally due to the Covid-19 pandemic.

One company taking a lead in this aspect, to ensure smooth workflow organisation, is US-based ServiceNow. Appointed as the company’s regional head in 2015, Ackerman is driving the company’s growth and has built a strong regional customer base, with clients across aviation, banking and finance, transport, and oil and gas sectors. Ackerman, who has been in the Middle East since 2007, has a background in enterprise service management.

In June, global tech company Orange Business Services announced the opening of its second UAE office in Abu Dhabi, as it looks to expand its presence in the region. The company, which currently supports public sector authorities with smart city management services, is headed in the region

by Sahem Azzam, who manages the team from the Dubai headquarters. Appointed to the role a year ago, Azzam has held several sales and marketing management roles across the ICT industry and was previously working with Hewlett Packard Enterprise.

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ILLUSTRATION: GETTY IMAGES/TEAMOKTOPUS

PA R T N E R C O N T E N T

An eye on the future As individuals and businesses adjust to the new normal, Gonzalo Usandizaga – vice president and general manager, Emerging and Growth Markets at Micro Focus, sheds light on the trends that are here to stay

How has your journey with Micro Focus been so far?

employees and customers.

The fourth priority is enablement.

I have been with the company for about 12 and a half years now. Since the last three years, I’ve been leading Micro Focus for the emerging markets region.

I oversee about 60 plus countries in the region, the largest markets being Russia, South Africa, Brazil, and the Middle East. In addition to my current responsibility, about nine months ago, I also started looking after the whole channel business in EMEA and what we call the tier-three business.

In your current role, you oversee all the emerging markets – how different is the GCC compared to other markets you cover?

You have worked with several tech companies during your career. What has been your main learning?

If I try to look back at my career during the last 15 to 20 years, there are four themes that have been quite consistent in terms of priorities.

The first are your people – if there is one theme I’ve seen that is consistent, it is the need to take care of your people and ensure teamwork. And that links with the second and third [priorities], which are to have very high standards of respect and ethics related to business,

The way we interact with customers in GCC countries is quite different compared to Central European countries or Russia or even countries in Africa.

The personal touch and having trust among individuals is way more important in this part of the world. In the end, of course, any agreement will be supported by a legal contract. That’s a standard across all countries, but in this part of the world, there is an additional component of personal behaviour that needs to be factored in.

In your opinion, what are the main challenges for regional organisations in implementing their digital transformation strategies?

I think we need to be careful, because when we speak of digital transformation, we’re talking about companies changing completely and embracing a new journey that will help transform

Defining the right metrics, and understanding whether your company will achieve those metrics or not, is absolutely critical to successfully implementing a digital transformation project 52

the company. Defining the right metrics, and understanding whether your company will achieve those metrics or not, is absolutely critical to successfully implementing a digital transformation project.

For those embarking on digital transformation journeys, what are the key things to keep in mind?

First of all, it is important to understand the starting point and to spend the right amount of time and resources on it. It is not just about technology – digital transformation is not purely about IT tools that you can implement to help transform your company. You need to have the right mix of IT tools and the right consultant partners. So, trying to understand the starting point, the right definition of milestones, clear KPIs, and then having the right measure of control are critical factors to succeed.

How has the Covid-19 pandemic impacted the tech ecosystem in the region?

It is having a huge impact on our customers and on us. But more importantly, it is having a massive impact on how we need to operate with our own employees. Our main focus right now is looking after our internal employees, because in the end, these employees will be the ones serving our customers. We need to guarantee that they have the right foundation. And that’s where I think that we’ve seen a lot of difference.

We need to train our salesforce and our support staff on how to manage and treat customers in this new normal. And that is where we’ve been putting a lot of

Gonzalo Usandizaga, vice president and general manager, Emerging and Growth Markets at Micro Focus

are your key tips for success?

effort and investment, in trying to help our employees understand how our customers are working remotely.

What are the key takeaways you expect post Covid-19?

I think we will need to be more flexible and offer greater empowerment to our employees. When we think about our customers, we need to find a way to increase two-way communication. That’s critical, because it’s not just about us as a vendor trying to connect with the customer, but also about how to generate that demand from the customer and then how to set the right expectations.

Looking ahead, what are the biggest tech trends you foresee in the region?

Artificial intelligence, big data and cyber security are the three trends that will continue to grow and expand in the region.

On a personal level, as a leader, what

We need to train our salesforce and our support staff on how to manage and treat customers in this new normal

To have the right team – no leader can succeed by himself. If you want to have a successful career, you have to build the right team. Secondly, when you’re in our [line of] business, results/ numbers matter. You have to deliver according to the company’s expectations.

Customer service matters – we’re in this business only because of our customers.

I think that people, results and customers are the three most important ingredients to build a successful career in this industry.

Lastly, what is your vision? What do you hope to achieve on a professional level?

I’ve been running multiple regions in Europe. For three years I’ve been running the business here in the Middle East.

For the last nine months, I’ve also been running business in Latin America and Brazil.

If I look globally, I never had the experience to work in either the US or Asia Pacific. In the future, that will be something to consider. I think that will complement my current background and skills and will help me have a better global understanding of markets and the business.

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ILLUSTRATION: GETTY IMAGES/JORG GREUEL

SPECIAL REPORT

“Innovation means possibilities are infinite. Innovation breaks moulds not limited by opinions or agendas” J O R DA N ’ S Q U E E N R A N I A A L A B D U L L A H

FACES TO WATCH: CYBER SECURITY In 2019, the GCC was reportedly subject to over 5.5 million malware attacks.

The need to safeguard data, intellectual property and personal information is being met with a renewed sense of urgency. These four individuals are leading the charge

Emile Abou Saleh

Garth Braithwaite

Regional leader, Middle East, Turkey and Africa, Proofpoint

General manager, Middle East, Southern Africa and Russia, Gigamon

The region is in dire need of cybersecurity protection – a recent study commissioned by Proofpoint revealed that as many as 82 per cent of organisations surveyed in the UAE said they had faced at least one cyberattack in 2019. Abou Saleh began his over 18-year-career as a programmer before working at some of the world’s biggest cybersecurity firms including McAfee and Forcepoint. That his firm reportedly reinvests up to 20 per cent of its revenues back into R&D keeps him and his team one step ahead of the cybercriminals.

A work-from-home model has stresstested the IT departments of most big companies who have to not only manage the daily hygiene of their networks, but also adequately safeguard it against threats.

Helping with the latter is Braithwaite’s team at Gigamon. Over a 20-year career, he has learnt to deftly analyse risks, spot opportunities and coordinate between multi-functional and cross-cultural teams to help clients arm themselves for a rapidly altering post-Covid-19 reality.

Moataz Bin Ali

Brandon Bekker

President, Middle East and North Africa, Trend Micro

Senior vice president, Europe, Middle East and Africa, Mimecast

“Despite the prevalent ideals of digital transformation, legacy systems with outdated operating systems and unpatched vulnerabilities are still a reality,” cautioned Bin Ali recently. Bin Ali, who previously worked at IBM, SAP and Microsoft, has aligned the Japanese cybersecurity firm’s objectives to that of Saudi Vision 2030 and UAE Vision 2021 and is offering customers in the region end-to-end hybrid cloud protection. It allows those who use a mix of local data centres and public cloud services a security cover across all touchpoints.

Bekker, who joined data and email security specialist Mimecast in 2007, has been particularly focused on growing the British cybersecurity’s business across verticals ranging from healthcare and retail to financial services as well as the public sector.

Heading up the MENA business since 2013, he opened a Mimecast office in Dubai in 2016 and has reportedly been instrumental in growing its business by 75 per cent in the region. He is also a board member at Contactable, a digital identity solutions company

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SPECIAL REPORT A powerful tool GCC governments are investing heavily in incorporating blockchain within their digital transformation initiatives

$105m 2023 (Estimate) $21m 2019

SOURCE: INTERNATIONAL DATA CORPORATION

FACES TO WATCH: GOVERNMENT The public sector is leading the push towards technology adoption in the region, with many governments setting ambitious digitisation targets.

Here are some of the leaders spearheading that agenda

Omar bin Sultan Al Olama

Dr Aisha Bint Butti Bin Bishr

Minister of State for Artificial Intelligence, UAE

Director general, Smart Dubai Office

To leverage the contribution of artificial intelligence (AI) and curate a knowledge-based economy, the UAE appointed Omar bin Sultan Al Olama as the world’s first Minister of State for Artificial Intelligence. Olama is also the deputy managing director of Dubai Future Foundation. Backed by his diverse experience across banking, telecommunications, private enterprises and government, Olama also contributed to preparing the UAE’s Fourth Industrial Revolution strategy. The UAE also established the world’s first graduate level, researchbased AI university to enable advancements in this space.

As regional economies usher in an era of transformative digital technologies, spearheading the initiative in Dubai is Dr Aisha Bint Butti Bin Bishr. Besides heading the entity tasked with Dubai’s city-wide smart transformation, Butti is a member of the World Economic Forum’s Global Future Councils, The Fourth Industrial Revolution’s smart cities readiness index team, and the World Happiness Council. She led the creation of the global Smart City Index in cooperation with ITU and the UN. On her watch, Smart Dubai Office also hosted the first robot receptionist – Farah – in the Middle East.

Mohammed Ali AlQaed

Dr. Esam Al-Wagait

CEO, Information and eGovernment Authority, Bahrain

Director, National Information Centre, Saudi Arabia

Mohammed Ali AlQaed was handed over the reins of Bahrain’s Information and eGovernment Authority (iGA), following the merger of the Central Information Organisation with the eGovernment Authority. AlQaed, who was previously CEO of the eGovernment Authority, is now tasked with spearheading the kingdom’s digital agenda. Last month, the official confirmed that the use of AI and big data – mainly through Bahrain’s BeAware app – has played a major role in the country’s fight against Covid-19 and helped the kingdom “save precious time” in dealing with the pandemic.

Saudi Arabia is investing heavily in becoming a regional technology hub and one of the people driving that transformation is Dr Esam Al-Wagait, who serves as the director of the National Information Centre (NIC).

The NIC provides the Presidency of State Security and Ministry of Interior with technologies and technical support. The erstwhile CEO of Saudi Arabia’s National Digitisation Unit, Al-Wagait also worked as a deputy minister at the Ministry of Foreign Affairs, while his academic stints include serving as the dean at King Saud University.

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“TECHNOLOGY IS NOTHING. WHAT’S IMPORTANT IS THAT YOU HAVE FAITH IN PEOPLE, THAT THEY’RE BASICALLY GOOD AND SMART, AND IF YOU GIVE THEM TOOLS, THEY’LL DO WONDERFUL THINGS WITH THEM”

STEVE JOBS

Lifestyle Retail Culinary Technology Auto Travel

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Sony PlayStation 5 It will come in two versions: a digital edition that can download games, and a 4K blu-ray drive version that can play discs

Beyond the horizon

Strategies, tips and tricks from the leaders of some of the worldâ&#x20AC;&#x2122;s most prolific independent luxury watch brands on how to successfully navigate the current crisis p.60 gulfbusiness.com

July 2020 59

Lifestyle / Horology

An independent mindset Independent watchmakers do not have the safety net that brands within large conglomerates enjoy. Yet, they’re a resilient lot. Here, we examine three independent brands – Breitling, MB&F and Bremont – who are very different in terms of scale, approach and the demographics they serve. This is how they are navigating the current crisis

BY VARUN GODINHO

C

ould Netflix serve as an inspiration to the luxury watch industry? It can, or at least its cofounder Marc Randolph and his book about the genesis of the streaming service This Will Never Work already has, says Maximilian Büsser, the founder of avantgarde brand MB&F. “Last year, I read Randolph’s biography.

The one thing that he has learnt is that you have to try something. Try small. Don’t put your whole company at stake. If that doesn’t work, try something new,” says Büsser.

MB&F is one of the Swiss watch industry’s leading independent brands and its boldfaced MAD Gallery concepts, one of which can be found at the Dubai Mall, is full of ‘kinetic art’ as Büsser refers to them.

Independents do not have the same marketing budgets, interconnectedness or safety net that conglomerates offer brands within their portfolios – yet that can in itself be a distinct advantage.

“You have to basically think David vs Goliath,” says Büsser. “You cannot implement the same weapons as Goliath. You have no chance whatsoever.”

Those chosen weapons often include simple business decisions that are at the discretion of the owner of the brand, and not at the mercy of sometimes bureaucratic board members within large groups.

One of Büsser’s weapons that has come handy during the crisis is that he always kept the market hungry for his creations.

“The lessons that we must learn from this crisis are the same lessons that we must 60 July 2020

learn from non-crisis situations. Produce fewer quantities than the market wants.

We’ve been doing that for six years.”

MB&F makes under 250 timepieces a year, with each of them priced at an average of Dhs300,000.

Being a nimble David has been an advantage to other independent watch brands too.

Take, for example, Breitling. It certainly is much larger in scale compared to MB&F and has more resources at its disposal, but it still hasn’t blinked when it comes to rapidly altering course.

It is led by Georges Kern, who has spent a considerable time at the helm of IWC – part of the Richemont Group that also has other brands including Cartier, Vacheron Constantin and Panerai within its portfolio.

Kern has worked within the trappings

of large groups, and now with Breitling he has reinvented the way he operates the brand’s business model. “You know, when you are an independent company – alone – it’s always different than when you’re in a group. But the beauty is, you can be extremely quick. And that is what we have been doing in the last 18 months. It’s unbelievable when I think about what we have achieved in this short period of time. Probably in another context, it could have taken five or six years,” Kern told Gulf Business.

He explains that one of the direct outcomes of the Covid-19 crisis was the decision to implement a Webcast Summit in April where instead of a traditional elaborate on-ground affair across major markets, Breitling decided to take the digital route to unveil its novelties. A key reason he cited was to “stay in contact” with consumers.

It’s a sentiment that resonates with other independents like the British watchmaker Bremont. “People still want to connect to your brand and product. Don’t go off their radar, because [otherwise] once you get through this you will be forgotten,” explains Giles English, co-founder of Bremont, while urging independents not to drop out of sight even if they’ve been hit hard by the pandemic.

Independent brands have traditionally had a more direct reach and connect with fans, generating small-batch cult-like interest in their creations.

“Don’t shut up the shutters and keep being proactive both in design, manufacturing and marketing,” adds English while saying that the impact of the virus on Bremont’s business has been “considerable”.

Keeping up a brave front though for Bremont hasn’t come without deliberate effort.

“All our own stores and wholesale stores have been closed and that has been the bulk of our traditional sales. We have been lucky that we have a strong military business that has not been affected and also we have a strong e-commerce business that has grown considerably in this period. This, however, does not make up for such a retail loss in turnover,” says English.

But the pandemic hasn’t had a calamitous effect on all independents across the board. Büsser says that in April, although 24 of his brand’s 26 retailers were closed, they did a sell out that was only 30 per cent less than a normal month. “In May, we had our second-best month of May in history,” noted Büsser. gulfbusiness.com

Lifestyle / Horology

Top: Maximilian Büsser, founder of MB&F Facing page: The LM 101 MB&F x H. Moser special edition for Ahmed Seddiqi & Sons

“The lessons that we must learn from this crisis are the same lessons from non-crisis situations. Produce fewer quantities than the market wants” gulfbusiness.com

“U

position ahead of other markets such as nprecedented” was the France, Italy and Saudi Arabia. word the Federation of

By April, the UAE accounted for only the Swiss Watch IndusCHF7.2m worth of Swiss watch exports. try (FH), which tracks Even though that was a whopping 89.2 per revenues and sales of the sector, used to cent dip year-on-year, it still was the tenth describe the effect that the Covid-19 panbiggest market by value in April, and its demic has had on the industry as a whole. imports were more than double the value As recently as January, the Swiss watch of that of mature markets like the UK. industry could pat itself on its back. Exports Speaking from his MAD Gallery in Dubai, to key markets including China, Japan, SinBüsser adds that he has had to rethink his gapore were all on the up and the value of initial decision in March to cut the year’s Swiss watch exports globally increased 9.4 production in half. per cent year-on-year.

“By the end of June, we would have more

By April, the FH revealed that Swiss watch or less delivered our previous year’s budget exports decreased 81 per cent in value and with a 100 per cent sell out,” he says, strik79 per cent in units compared to April 2019. ing an optimistic note.

The UAE market for Swiss watches took Büsser says of his sales a proportionate hit, though in the UAE, “By the end has still managed to stay of June, the sell out here among the top 10 markets. will be close to 50 per cent In January, the UAE the year-on-year higher than the whole of last accounted for CHF86m in decrease in value of year. Of course, the 15-piece watch exports, a 9 per cent Swiss watch exports limited edition we did for year-on-on-year increase in April 2020 Seddiqi is part of that.” and placed it at ninth

-81%

July 2020 61

Lifestyle / Horology

“While digital can replace a lot in the decisionmaking process, in the buying phase, the act of visiting physical stores will remain huge”

The watch that Büsser is referring to is a special limited-edition LM 101 MB&F x H. Moser with an aqua blue fume dial that he created for Ahmed Seddiqi & Sons, a retailer who backed him from when he conceptualised the brand 15 years ago.

The watch is also noteworthy because Büsser teamed up with another independent watchmaker, H. Moser & Cie, headed up by the dynamic Edouard Meylan.

The family-owned Schaffhausen-based H. Moser & Cie makes 1,500 watches a year and is one of the very few watchmakers capable of producing hairsprings through its Precision Engineering division. “We’ve been working with Moser for 10 years. All our Legacy Machines, all our integrated movements have got hairsprings from Precision Engineering,” explains Büsser, adding that the 101 features a double hairspring.

MB&F have also worked on another limited edition recently with Moser – the Endeavour Cylindrical Tourbillon H. Moser x MB&F – that features a cylindrical hairspring.

62 July 2020

Clockwise from top: Breitling CEO Georges Kern; Bremont’s online configurator allows customisation of its MBII timepiece; Giles English, co-founder of Bremont; Breitling Superocean Heritage ’57 Limited Edition

“We’re both family-owned companies and around their same size. They’re very strong in markets where we aren’t and the other way around. For example, they are very strong in China,” said Büsser.

Pandemic or not, China has still managed to retain the top position as the biggest market for Swiss watch exports.

In April, China accounted for CHF110.3m of all Swiss watch exports, down only 16.1 per cent year-on-year, and was bigger than the next three markets – Hong Kong (CHF42.2m), US (CHF27.9m) and South Korea (CHF25.1m) – combined.

“There will be an even greater rush to China as the Chinese stop travelling as much,” predicts Bremont’s English.

But just as MB&F found a bright spot in the Middle East, Breitling also says that the market here has potential that cannot be taken for granted. “The Middle East ranks fifth globally [for Breitling]. In the first quarter up until March, Dubai boutiques were among the leading boutiques in the world.”

Breitling has already rolled out its spring novelties across boutiques in the Middle East and part of the proceeds from the new Superocean Heritage ’57 Limited Edition sold here are being donated to charities supporting the frontline healthcare workers in some of the most affected countries.

W

ill the luxury watch industry in general, and the independents in specific, go all out on e-commerce going forward? “Of course not,” retorts Büsser, adding that while he still doesn’t believe that MB&F’s timepieces would be best showcased online and added to a “basket”, he has decided to introduce very gulfbusiness.com

Lifestyle / Horology

few of its watches on a rotation basis every two weeks on the brand’s online platform.

There will be one watch from MB&F’s headquarters in Geneva and another from one of its retailers globally. It’s a clever way for MB&F to bat in the retailer’s corner while also fueling the buzz around some of its most iconic models.

E-commerce though is being more vigorously implemented by other independents.

English says that he expects a big push to direct to consumer e-commerce and that they have “jumped forward by five years in a couple of months.”

One of Bremont’s recent initiatives was to introduce a new online configurator that allows customers to choose their own version of the Bremont MBII timepiece from over 1,000 possible combinations to customise the case finish, colour of the barrel, dial, case back, strap and even the buckle.

“We had been growing our online for a couple of years and the MB configurator was always part of our plans, but we did fasttrack it as a result of Covid. What the crisis has done is to focus us more online and to do that better, but also we will be opening more boutiques. There are great retail deals to be had,” offers English as a counterpoint to the rise of e-commerce.

Resonating Gile’s enthusiasm about physical retail, Breitling’s Kern adds, “I do think physical retail will remain number one. While digital can replace a lot in the decision-making process, in the buying phase, the act of visiting physical stores will

gulfbusiness.com

“People still want to connect to your brand and product.

Don’t go off their radar, because [otherwise] once you get through this you will be forgotten”

remain huge. Despite the fact that 70 per cent of the [purchasing] decision process happens online, people want the physical 360-degree understanding of the brand.”

Breitling isn’t relegating its e-commerce business to an afterthought. “We have now introduced e-commerce in the US, UK, China, Japan, Australia, Canada and Europe. And in addition, the products are also available on the retailers’ e-commerce sites. The share of online sales will most certainly increase. But will it go up to over 10 per cent? We will have to see,” says Kern.

Here in the Middle East, Breitling is pushing forward with its boutique expansion strategy. “We are in the final stages of production for our new boutique in Mirdif City Centre set to be open by July 2020,” says Kern. “2020 will also see a particular focus on Saudi Arabia with three new boutiques in Jeddah, Riyadh and Al Khobar.”

Büsser emphasises that the really successful retailers going forward will be those who have cultivated deep-rooted relationships with their clients. “For retailers, it’s no longer about having great brands and a great location anymore – it’s about having great relationships with clients that trust them.”

There are key takeaways to be learnt from this pandemic. For companies like Bremont, it is about being more resolute, decisive and reducing wastage. “I think if you are a small or large brand the effects have been the same, it’s all about whether you have the resources to get through it and the ability to cut costs. If you can, the future may be very positive. One big positive is that there is a big wastage of resource in the watch industry so there are big efficiency savings to be made across the groups and independents.

If you were weak going into this, you will really be struggling,” cautions English.

For MB&F, this period has been one which Büsser admits has shaken himself and his team from a creeping sense of complacency that resulted from the success MB&F has enjoyed over the last decade-and-a-half of its existence. “Success is your biggest enemy.

When you’re successful, you start becoming complacent, you start believing your own narrative and you lose creativity. I’ve learnt [from this crisis that] the only thing you can be sure of, is that you can be sure of nothing. Once you’ve understood that, whatever plans you create, you’re going to reevaluate them in a week or month. What you need is a long-term vision of the brand and your values. All the rest, you adapt.”

July 2020 63

Lifestyle / Retail

PHOTO: GIUSEPPE CACACE/AFP VIA GETTY IMAGES

Men walk at the Dubai Mall after the government eased some of the restrictions that were put in place in a bid to stem the spread of Covid-19

Reimagining retail Personal luxury sales in the UAE and the Middle East has, expectedly, nosedived. But luxury retailers are pushing forward a multi-pronged strategy that will – if successful – result in a gradual comeback for the sector

BY VARUN GODINHO

R

evenge shopping. That’s what some attributed the $2.7m in sales to that a Hérmes boutique in Guangzhou raked in on the first day that it reopened in April, post the nationwide Covid-19 lockdown in China.

The term referred to pent up demand that resulted in shoppers flocking back to stores the day that restrictions were lifted.

But was that moment indicative of the direction – a V-shaped curve – that the rest of the global luxury market was heading towards for the rest of 2020?

Not nearly, according to Patrick Chalhoub, CEO of Dubai-based Chalhoub Group – one of the biggest retailers in the Middle East with over 750 retail outlets spread across over 14 countries – whose brands 64 July 2020

include Louis Vuitton, Christian Louboutin, Tory Burch and L’Occitane, among others.

Significantly, Middle East personal luxury sales were already in decline even before the start of the pandemic.

“The GCC luxury market is around 3 per cent of the global market. We estimate the peak of GCC personal luxury sales – including beauty, fashion, jewellery, gift, and watches – reached $8.8bn in 2015. But since 2015, it has been quite sluggish. It decreased between 1-3 per cent every year after that, and the lower point was in 2018 when it reached $8.3bn compared to a global worldwide estimated turnover of $299bn,” Patrick told Gulf Business.

Last year, however, marked an uptick in global luxury sales which reached an

estimated $312bn. However, while sales worldwide increased around 6 per cent year-on-year, sales in the Middle East climbed marginally by around 1 per cent to approximately $8.4bn.

Then came the Covid-19 tsunami that violently uprooted every informed prediction made for the industry as late as January.

“It’s true that in 65 years of our existence, our group has known a few crises – but this is a very big one. Chalhoub Group had disruption of sales in March of minus 40 per cent. In April and May, we saw minus 60 per cent. For 2020, our new estimate is that we would be losing 33 per cent of the business compared to last year,” says Patrick.

His forecast for Chalhoub is in line with similar predictions made by Bain & gulfbusiness.com

Lifestyle / Retail

Company for the worldwide market. The global personal luxury goods market is expected to contract between 22-35 per cent in 2020, says Cyrille Fabre, partner at Bain & Company Middle East.

Luxury brands aren’t banking solely on retailers and are taking control of their own business models. Saint Laurent, for example, said that it was opting out of fashion shows for the rest of the year, while Chanel raised prices of some of its iconic handbags including its 2.55 style by up to 25 per cent, and Gucci said it would limit its fashion shows to two every year, down from about five annual shows it used to participate in annually.

Here in the Middle East, brands have quickly adapted their distribution models.

Hermés has begun a complimentary concierge service available seven days a week throughout the region, with no minimum charge, and aims to deliver within 24 hours of receiving the orders either over the phone or via WhatsApp. But with looming fears of a second wave in some countries and an overall dampener on discretionary spending, is now the time for luxury brands to reduce their visibility? “This is not the time to go dark. More than 75 per cent of consumers covered in a recent survey by Kantar, done during the first two months of the Covid outbreak, said that they still wanted to be marketed to.

But the caveat was that they did not want brands to use the opportunity to be hard selling or profiteering from their interaction. That is what brands need to think about,” says Zaib Shadani, founder and managing director of PR and social media agency Shadani Consulting who has managed communications for brands including TAG Heuer and David Morris.

W

hile it can be difficult to inspire the same levels of confidence among shoppers to walk into a sprawling mall, the Covid-19 crisis has provided an unprecedented stimulus to the rise of e-commerce.

Patrick acknowledges that the luxury business in the Middle East was slower to adopt digital strategies compared to other markets. His group began to embrace a more concerted digital strategy only as recently as three years ago. “In the UAE, e-commerce would be around 5-6 per cent of the luxury business, while at a worldwide

gulfbusiness.com

Patrick Chalhoub, CEO of Dubai-based luxury retailer Chalhoub Group

scale it is closer to 10 per cent of the business. We had the ambition for it to reach 10 per cent over the next 2-3 years and to 20 per cent by 2025. At the time we had the breakout of the Covid-19 crisis, e-commerce probably accounted for 3.5 per cent of our business,” explains Patrick.

Covid-19 though served as the multiplier effect. “During Covid, the only way to reach our customers was through e-commerce.

As a group, we multiplied our e-commerce business by 6, so we went from 3.5 per cent of our business to what would have been 20 per cent if the rest of our business would have been there.

“Earlier, we would take between 9-15 months to create an e-site. However, we managed to create 15 in a month, instead

Luxury brands aren’t banking solely on retailers and are taking control of their own business models

of one in 15 months leading to a big push in e-commerce for our retail and wholesale business. In one month, our target of 2025 has already been reached,” stated Patrick.

Chalhoub’s strides in e-commerce are in line with those made in global markets too. “The crisis is expected to drive a further acceleration of e-commerce in luxury, which was already growing at 25-30 per cent in 2019. Although the digital channel has always been critical in influencing luxury purchases – up to 100 per cent of them – new customers have been converted to e-commerce with the emergence of Covid. Several retailers, both brick-and-mortar and online, have focused their efforts in this period on either going online or making their e-commerce channels more convenient with personal shoppers, enhanced delivery and more payment and return options,” says Bain’s Fabre.

Circling back to China – Bain predicts that Chinese consumers will account for 50 per cent of the personal luxury market by 2025. Brands like Burberry have already moved beyond traditional brick-and-mortar stores and partnered with Tencent to create a ‘social retail store’ merging online and offline technologies at a store which will open in China later this year.

Closer to home, Chalhoub inked an agreement with e-commerce platform Farfetch in 2018 – a partnership which has allowed it to further an altogether new retail tech strategy in the UAE. “A lot of people ask me what proportion of our sales will be from e-commerce?

But ultimately, I shouldn’t care. It can be 80-20 or 20-80 or 50-50. Our ambition is to become a hybrid retailer offering our customers the ability to buy digitally or visit our stores,” states Patrick.

He adds that those who visit the brickand-mortar stores should be suitably rewarded. “We have to make sure that if our customer is making the effort to come to the mall, we must be able to not only offer them security, but also offer them a meaningful experience through our visual merchandising, storytelling, and exclusive product offerings.”

In May, Emaar’s Dubai Mall unveiled a digital strategy too when it partnered with noon.com to create a virtual store to help its retailers including fashion brands such as SJP by Sarah Jessica Parker and Bape to sell via the e-commerce platform.

July 2020 65

Lifestyle / Retail

Another Dubai-based mall, the Majid Al Futtaim-operated Mall of the Emirates, recently started a Trends at Your Doorstep programme whereby customers can browse the catalogues of some of its top luxury brands from Bulgari, Cartier and Burberry to Vacheron Constantin, Kate Spade and Ted Baker and avail of complimentary contactless home delivery on their selections.

“Traditionally if you look at the way luxury brands have behaved, a lot of them were hesitant when it came to going online because there was this impression that it would dilute their luxury brand image, or reduce the sense of exclusivity, or even the question of control they would have on a third-party website. But right now, the luxury brands that really will survive, are the ones that are bringing a digital strategy into play,” explains Shadani.

There are cautionary tales to be learnt when rolling out digital strategies though.

You needn’t look further than high-street e-commerce platform Nisnass. The Al Tayer Group said last month that it had decided to shut the e-retailer, without specifying the reason for its closure.

Also, Dubai-based luxury fashion e-commerce platform The Modist, which raised $15m from London-based Vaultier7 in June 2018 and reportedly had other investors including the Chalhoub Group, Farfetch and Nicola Bulgari, vice chairman of the Bulgari Group, cited the “global crisis” as the reason it had decided to shut down in April just three years after it had begun operations.

66 July 2020

W

ith malls across the UAE shut for extended periods during the recent lockdown, some of them rolled out rent relief measures for their tenants.

Dubai developer Nakheel unveiled a Dhs230m relief package in March which included free rental periods for retail and hospitality partners operating at its malls which include Ibn Battuta Mall, Dragon Mart 1 and 2, and The Pointe.

Also in March, the Al-Futtaim Group pledged a Dhs100m fund to offer up to three months’ worth of rental relief to tenants across its malls including Dubai Festival City Mall and the Festival Plaza mall.

“What we need are frameworks that will be helpful to have a more balanced relationship between service providers, clients, developers and tenants and for flexibility in the existing laws between tenants and developers,” says Patrick.

In a boost to malls and retailers within them, Dubai announced that it would permit tourists to return to the emirate starting July 7. But, there isn’t expected to be a deluge of tourists just yet. “Tourism will come back over time. The short-term effect will be partially offset by the potential

Estimates indicate a recovery in the UAE’s luxury retail industry to take until 2022

repatriation of purchases which were typically done abroad in the past, driving greater levels of domestic consumption in luxury,” offers Fabre as an explanation why decreased tourism levels might not spell disaster for the luxury retail industry in the region as it inches its way towards a recovery. “Once travelling routines return, the Chinese middle class is expected to continue driving the overall growth of the market,” adds Fabre.

Lending credence to Fabre’s assertions is news like jeweller Tiffany saying that its retail sales in China leapt 30 per cent in April and 90 per cent in May, year-on-year, with Chinese shoppers currently accounting for 35 per cent of all personal luxury sales around the world.

While driving domestic consumption to offset that of tourists, retailers need to bear in mind the specificities of the Middle East.

As Patrick says, watches and jewellery represents around 30-35 per cent of the business in the region, while worldwide it is only at 22 per cent. Perfume and cosmetics meanwhile which account for 23 per cent of the pie is in line with the global average, while fashion and accessories which account for 40 per cent of sales here in the Middle East are lower than the global average – and hence could represent an opportunity.

Fabre says that a “mall-centric culture” engrained in the Middle East is why he expects visiting, shopping, and dining in malls to remain popular activities. That sentiment probably explains why Majid Al Futtaim, for example, recently confirmed that it was pressing ahead with its plans to open the City Center Al Zahia mall in Sharjah in March 2021, expected to become the largest mall in the Northern Emirates.

The retail industry in the UAE will have to reckon with far-reaching decisions though to weather the next few months.

The Chalhoub Group for example has confirmed that it will lay off 10 per cent of its 12,000-strong workforce and will require its employees to take pay cuts too, while also adding that the group will have a “lesser footprint of stores” going forward. “This year will be extremely difficult for our business because we will be unable to reduce our costs by 33 per cent and to reduce our inventory quickly. We will have to survive in 2020, go back to a certain level normality in 2021, and then make sure that in 2022 we rebound – and rebound quite strongly,” concludes Patrick. gulfbusiness.com

Lifestyle / Culinary While restaurants are restricted in the number of guests they can accept onto their premises, a few have decided to bring their gourmet food to your home

Back in the kitchen Three other restaurants to visit that have now reopened in the UAE. SHANGHAI ME

We distinctly remember the exceptional steamed chicken and scallops dim sum served alongside a chilli oil sauce with anchovies. And for the mains, you can’t go wrong with the aromatic and flavourful mushroom and truffle clay pot rice. Of course, end your meal by asking for the giant fortune cookie.

Podium Level, Gate Village 11, DIFC, Dubai. Open daily from noon-10pm. Tel: (04) 564 0505

LE VENDÔME

In line with the Covid-19 safety restriction, the buffet service has been closed, although the a la carte menu is available at this all-day dining restaurant.

And if you stick to the restaurant’s suggestions, pick its curries and the filet de boeuf.

OPA Dubai

G

reek restaurant OPA Dubai has reopened with all the bells and whistles, including the plate smashing routine. But even if you aren’t ready to return just yet, the restaurant has made available a special limited menu for home delivery via Deliveroo.

Served in compostable packaging, a recommended starter is the tzatziki yoghurt dip.

The roasted garlic in it does not overpower the dill, and it is served with pita bread. The creamy hummus meanwhile is served with pine nuts, while the Greek salad has farmfresh vegetables and olives – Kalamata, of course – capers and can be drizzled with an oregano vinaigrette. For the mains, Mediterranean flavours come through strongly with the marinated baby chicken, which too was served along with another portion of the tzatziki. Another recommended main is the tiger prawn orzo, in which the tiger prawns are placed on a bed of orzo pasta and doused

gulfbusiness.com

From top: The baklava sundae at OPA Dubai; Le Vendôme at Emirates Palace in Abu Dhabi has reopened too

Emirates Palace, Corniche Road, Al Ras Al Akhdar, Abu Dhabi. Open daily from 8am-8pm. Tel: (02) 690 7999

INGREDIENTS

with a generous serving of seaweed butter.

To end, the Opa baklava sundae is the only option available on the home delivery menu, and it’s a confident choice at that. Pieces of baklava are served mixed with a creamy Greek yoghurt ice-cream, pistachio icecream, filo and caramel. On a sensory level, it can compensate for the plate smashing experience that you would have otherwise witnessed should you opt to dine-in instead.

OPA Dubai: Fairmont Dubai, Sheikh Zayed Road, Trade Centre Area, Dubai. Open daily from 7pm-11pm. Tel: (04) 357 0557. Delivery menu available via Deliveroo.ae

If there are new flavours and preparations that you would like to discover at a restaurant in the capital, Ingredients has recently launched a seafood night available every Thursday. The four-course menu priced at Dhs295 (with house beverages) includes sushi, lobster, salmon fillet and a creamy seafood bisque too.

Anantara Eastern Mangroves Abu Dhabi Hotels, Sheikh Zayed Street, Abu Dhabi.

Open daily from 6.30am-9pm. Tel: (02) 656 1000

July 2020 67

Lifestyle / Technology

OPPO has partnered with Etisalat to launch the Find X2 Pro 5G in the UAE

Hands-on review: OPPO Find X2 Pro 5G

A new flagship 5G device is in many ways a response to the pandemic that now requires smartphones to be mini workstations in themselves

BY VARUN GODINHO

T

he 5G market here in the Middle East and North Africa is ripe.

The recent lockdown and workfrom-home measures initiated as a direct result of the pandemic has only led to a greater push for the rollout of 5G, especially among business executives who have had to reconfigure their handheld devices into mobile workstations.

A recent telecommunication report revealed that by 2025, the MENA region is expected to account for 80 million 5G subscriptions or nearly 10 per cent of all mobile subscriptions.

68 July 2020

For mobile phone companies not to enter the 5G market would be a grave miscalculation. Leading technology company OPPO hasn’t let the opportunity slide by.

On June 18, it launched its latest flagship device – the OPPO Find X2 Pro 5G – in the UAE in partnership with telecom operator Etisalat, and we managed to go hands-on with the new device ahead of its launch.

Straight out of the box, you’ll notice that the phone sits absolutely snug within your palm without feeling unbalanced either at the top or at the bottom and, importantly, it can be comfortably operated using just one

hand (that it weighs less than 220 grams is an added advantage).

Powering it up, it’s hard to overstate how striking the 6.7-inch Ultra Vision screen really is – OPPO says that it can display over a billion colours and has a contrast ratio of 5,000,000:1.

The 3k QHD screen with a 120Hz refresh rate (for comparison, there are several devices out in the market now with 60Hz refresh rate) offers a vivid display, and even at around 25 per cent of its full brightness, we could still see the colours pop.

Borderless design with a fingerprint sensor under the Gorilla 6 glass ensures that images receive maximum play on the screen, and while they do curve down the edges on the sides, it doesn’t require you to turn your phone on its side to view those corner details.

The software that the device runs on is OPPO’s ColorOS. However, the ColorOS 7.1 is worked on top of Google’s Android 10.1 which means that it isn’t an experimental version, but has all the features that a regular android device offers with a few customisation options around the colour display. With a familiar Android layout, there aren’t any steep learning curves or gulfbusiness.com

software navigation glitches that original OS systems otherwise throw up with nonAndroid and non-iOS platforms.

Download a few apps from the Google Play Store on this phone, and you’ll see the dual-mode 5G engine powered by a Qualcomm Snapdragon 865 processor (OPPO launched its first Qualcomm-powered 5G device in the GCC a year ago) which allows for download speeds of up to 5.9Gbps begin to shine through with a considerable amount of firepower.

One of the apps we downloaded was the Shahid app that features a host of ondemand videos. Without signing up for the service, we could play a few videos which allowed us to gauge the display quality, sound and loading response time (while we left other apps running in the background). A dual-sound speaker with Dolby Atmos technology means that the sound is crisp, though even at full volume the sound doesn’t jar. A major bonus here is that you’ll find a physical button to control the volume on this device.

The Find X2 Pro features a massive 4,260mAh battery which allowed us to operate the phone without any battery anxiety and the full use of apps for video streaming, basic gaming and functions like emailing and calls for the entire day.

But plug it in and the 65W SuperVOOC 2.0 charging technology is incredibly powerful – we charged the device from 20 per cent up to 52 per cent in seven minutes flat – leading us to believe that OPPO’s claims of the device charging from empty to 100 per cent in less than 38 minutes isn’t hollow marketing spiel.

At the rear of the Find X2 Pro (the ceramic rear surface surprisingly isn’t a fingerprint magnet) you’ll find a 48mp primary camera, a 48mp ultra-wide-angle camera and a 13mp telephoto lens. As with other recent OPPO devices, the Pro Expert mode allows you to manually adjust features like the ISO, shutter speed, white balance and the autofocus.

The 48mp primary camera features a Sony IMX689 sensor, and is among the largest you

will find in a 48mp smartphone camera. The periscope telephoto camera offers a 10X hybrid zoom and 60x digital zoom. It would be unfair to compare this device with other OPPO devices like the Reno3 Pro which has a class-leading camera – or rather six of them – but the Find X2 camera can hold its own too.

In regular photo mode, we chose the AI Dazzle Color feature that uses AI to automatically detect whether a photograph is

Borderless design with a fingerprint sensor under the Gorilla 6 glass ensures that images receive maximum play on the 6.7-inch Ultra Vision screen gulfbusiness.com

being taken indoors or outdoors, or under artificial/low-light conditions, and adjusts the colours, brightness and tones. It even automatically chooses macro mode if the object is close to the camera.

Upfront the 32mp camera captures a reasonably wide frame with in-built vanity-boosting beauty features that again uses AI tech to alter the features of your face. Thoughtfully, that camera has been pushed to the left corner of the screen.

When you’re operating the phone, you get a view of that brilliant screen that’s uninterrupted with the ungainly sight of a camera hole mounted in the centre of the screen.

When it’s time to wind down, the phone features an OPPO Relax app that allows you to focus on breathing exercises and plays a pre-set list of soothing tones such as Nighttime Camping with the sounds of crickets chirping and the rustling of firewood, or Summer Seashore with views and sounds of waves breaking across the shore and seagulls squawking in the background. It reminds you of a pre-pandemic time when moving freely outdoors was a given, not a privilege.

In a world that has turned on its head, and requires a different set of tools to cope – including tech tools – this 5G device rises to the occasion.

The 512GB variant is priced at Dhs4,999. It can be purchased with flexible Smart Pay plans on a 12, 18, or 24-month contract starting from only Dhs 207 in Etisalat stores across the UAE and on oppo.com

July 2020 69

Lifestyle / Auto

Going the distance The new Range Rover Fifty limited edition celebrates half a century of iconic SUV design and engineering that hasn’t lost sight of its roots

BY VARUN GODINHO

S

UVs, in their original guise and design, were rugged go-anywhere utilitarian machines. Challenging the stereotype was the Range Rover that broke cover in 1970.

A two-door SUV, it swapped sharp edges for curves and right-angles for sweeping lines. Even the Louvre Museum in Paris called it an “exemplary work of industrial design” while exhibiting it in the museum.

It became the first vehicle ever to be displayed inside the institution.

But the Range Rover wasn’t a mere vanity exercise. It was one that would push forward an equally aggressive technical agenda that made it a formidable off-roader. It became the first vehicle to cross the notoriously difficult Darién Gap two years after its debut when Major John Blashford-Snell led an expedition from Alaska to the southernmost corner of Argentina. By 1974, it traversed 7,500 miles from the west to east of the Sahara desert in 100 days. A modified Range Rover even won the inaugural Paris-Dakar rally in 1979, and repeated the feat in 1981, ensuring none could claim the first victory to be a fluke.

The Range Rover also served as a template for other SUVs by becoming not only the first to be built as a permanent 70 July 2020

four-wheel drive upon its debut, but it also became the world’s first 4x4 kitted with ABS in 1989, and also the first 4x4 to feature electronic traction control and automatic electronic air suspension.

The Range Rover family has subsequently spawned variants including the Range Rover Sport, the Range Rover Evoque, the SVAutobiography and the Range Rover Velar – interestingly, Velar was the codename the designers gave the original Range Rover back in the late 1960s when they were road-testing prototypes of it in several countries around the world.

Fifty years later, four generations on, and after over a million units have been sold, the Range Rover is still in rude health. To

mark its 50th anniversary, Land Rover unveiled the Range Rover Fifty last month – limited to 1,970 units.

The Range Rover Fifty is built with trim levels of the top-end Autobiography model, and is available both in standard as well as long-wheelbase variants. Besides, it also features two special 22-inch wheel designs.

It has bespoke exterior accents that are painted in Auric Atlas (the colour black) with the ‘Fifty’ script created by none other than the inimitable Gerry McGovern, Land Rover’s chief creative officer. The lettering is also found across the interiors including the centre console, dashboards and headrests too.

The SUV is available in four colours: Carpathian Grey, Rosello Red, Aruba, and Santorini Black. But if you want a special version – and there’s every reason you should with a limited edition like this one – Land Rover’s Special Vehicle Operations will oblige with a special paint job of either Tuscan Blue, Bahama Gold and Davos White, the colour options of the original Range Rover.

You can have the Fifty in a petrol, diesel and even a forward-looking plug-in hybrid P400e version that sets up the SUV appropriately for the next half a century of its existence, and beyond.

A modified Range Rover won the inaugural Paris-Dakar rally in 1979, and repeated the feat in 1981 gulfbusiness.com

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Lifestyle / Travel

Regional treasures As flights begin to slowly resume across the globe, travellers are invariably eyeing up the possibility of a trip at some point in the future. But with international travel still a question mark, some of the safest destinations to visit may well be closer to home. With that in mind, the archaeological wonders of AlUla and Petra, and the soaring Hajar mountainscape all await their next guests...

BY GEORGINA LAVERS

A L U L A , S AU D I A R A B I A

PHOTOS: COURTESY AND UNSPLASH

As the sun rises over statuesque tombs, a buggy accelerates through a desertscape, twisting and turning past ancient ruins and rose-coloured dunes in a scene not wholly dissimilar to Star Wars.

Still just a pipe dream, an adventurer could look to make Saudi Arabia’s AlUla

their next must-see destination when the site opens this year, in October 2020.

There is a cinematic attraction to the site, which has been carefully drawn out by the architects of the redesign. Small vintage aeroplanes are intended to allow visitors a soaring aerial view of the site, volcanic craters can be explored with a local guide, and hundreds of tombs lie waiting to be

discovered. For the aspiring Indiana Jones, it’s a no-brainer: AlUla is the place to live out one’s intrepid imaginations.

As archaeological treasures go, AlUla is memorable. The site covers an area of around 30,000 square kilometres, much of its building attributed to the Nabataean Kingdom. A nomadic Bedouin tribe that existed in the 4th century BCE, the Nabataeans gained recognition as talented traders and became a political power who minted coins and ruled over much of the Arabian and Sinai Peninsulas. The kingdom led control of an incense route where myrh and frankincense ran from Mada’in Salih, a UNESCO-listed site in AlUla, all the way down to what is arguably the Nabataean’s most famous city – Petra.

Today, Mada’in Salih – which is also known as Hegra – is best known for its rock tombs, of which there are more than a hundred. Inscriptions detailing the Nabataean elite, who included healers as well as military leaders, still stand above the burial chambers.

Ancient writings and sculptures pepper the city, including betyls – stone blocks representing gods – and Lihyanite inscriptions so extensive they are referred to as an “open-air library.” Self-guided tours will be available, but the site will also offer local Rawis, or Arabic storytellers, to bring the ruins to life.

Alongside ancient sites detailing the history of lost civilisations is the desire to create a new kind of kingdom, which both respects its past and looks to a new future. The Sharaan Nature Reserve was announced in 2019, with aims of preserving the flora and fauna of the area, as well as

This page and facing page: In the 4th Century BCE, an incense trade route ran from Mada’in Salih, a UNESCO-listed site in AlUla, all the way down to what is arguably the Nabataean’s most famous city – Petra

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P E T R A , J O R DA N

establishing luxury guest lodgings. Architect Jean Nouvel, responsible for the Louvre in Abu Dhabi, is set to design a resort in the area in partnership with Aman, set to open in 2023, and animals have been already released into the reserve, including ostriches, ibexes and gazelle.

Elsewhere, Ar-Ruzeiqiah mountain is rich in petroglyphs depicting onyx, hunting horses and humans carved into its sandstone cliffs, as is Mount Ikma, whose inscriptions have not yet been understood.

They, and much of AlUla, remain replete with enigmatic, centuries-old secrets. gulfbusiness.com

Like AlUla, Petra’s treasures can be in large part attributed to the Nabataeans

It is a loud morning in Petra, the call to prayer followed by a throaty roar of taxis, the odd bray of a donkey and tour buses chock-full of groups winding their way down the hill to the entrance of one of the most revered archaeological sites in the world.

Petra has been steadily increasing in popularity since its discovery and subsequent commercialisation, seeing 1.1 million tourists marvel at the site’s impressive tombs and stone carvings in 2019.

Like AlUla, Petra’s treasures can be in large part attributed to the Nabataeans, whose trading talents and skill at desert living made them easily able to adapt to – and defend – their new city.

They, along with the Edomites and the Romans, have all inhabited the city at certain points in history, lending it a rich and textured past.

To get to Petra, tourists typically hire a car or driver from Amman’s airport, approximately three-and-a-half hour’s drive from Petra.

Most hotels and guesthouses are located in the nearby town of Wadi Musa, just a short drive or walk up-hill from the archaeological site.

Seemingly every guesthouse boasts an open-air rooftop cafe, all featuring impressive views and good places to watch the sun go down after a day’s sightseeing. Local restaurants in town are low-key and cheerful, offering traditional Levantine dishes such as mansaf, the hearty lamb and rice dish made with a fermented yoghurt sauce.

There are a variety of ways to experience the site of Petra itself, with guides at the entrance offering horses, donkeys or even camels to transport guests through the site.

Those who prefer shank’s pony as their means of transport can slowly walk through the gorge, or siq, which winds through the rock for a kilometre before the ancient city begins to reveal itself. From an amphitheatre to a treasury – the latter actually a large tomb – the intricate facades reveal an advanced civilisation, with water channels and cisterns carved into the rock hinting at a well-ordered society. One of the most wellattended sites is Al-Khazneh, believed to be the mausoleum of a Nabataean king. Further up, the High Place of Sacrifice is well worth the 45-minute climb – with a ritual altar containing drains which channelled the flow of blood from animal sacrifices.

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This page: Hatta in the UAE has transformed from a small agricultural town to a thrill-seekers hub

Although usually bustling (prior to the pandemic), there are a few ways to find a quiet spot. Competent riders should hire a horse for a tour outside of the archaeological park in order to see views of Al-Khazneh or Ad Deir from above, and walkers should try a moonlit tour, which typically runs from around 8-10pm. With the site lit up by candles, one can almost feel like they are back in the Byzantine times. Finish at the Cave Bar, a two-hundred-year-old tomb that has been converted into a tavern.

H AT TA , UA E

Drive along the E44 highway from Dubai’s centre for around an hour and you’ll see a sign: “#VisitHatta”. The Hollywood-esque sign is an indication of the rebrand Hatta has gone through, from a small agricultural town to thrill-seekers hub.

High in the Hajar mountains, Hatta occupies an unusual status as an inland exclave

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A visit to Hatta is best ended with a sunrise hike in the local conservation reserve

of Dubai, just on the cusp of Oman. Previously known as Al Hajerin, the area’s cooler climate primarily attracted farmers, who still grow date palms in the region.

Now, springs and valleys in the area lend it a lush, green atmosphere that attracts visitors keen to explore this desert oasis.

The main attraction of Hatta is its dam, a vivid splash of blue nestled among the sand-coloured mountains. Though not natural – the dam was manmade in the 1990s as a sustainable source of water for local residents – it feels fitting to the area and has attracted a range of birdlife, from herons and plovers to the odd fish eagle.

Should they look down, hikers exploring the trails above the water will also invariably see a mass of brightly coloured specks, especially on a weekend. Kayaking is immensely popular in the dam, with the local shop also providing options that range from donut boats to water bikes, and even dog-friendly canoes.

Paddle round a bend of the dam and you might find a small class performing sun salutations on the water’s edge. Yoga classes are available at the Sedr Trailers Resort, a collection of repurposed Airstream trailers with their own deck and communal firepit.

Often booked up months in advance, they are a good way to experience the region in relative comfort.

Those looking for a more traditional camping experience should head to the nearby caravan park, which also is home to a variety of food trucks.

Activity-seekers have also embraced a plethora of new sports in the area. Downhill karting, zorbing, archery and trampolining are all on offer, with JA Hatta Fort Hotel also offering a survival skills course for those really looking to adapt to the wild.

One of the standout sports is mountain biking, with the creation of well-marked trails that range from beginner to advanced; take the easier green route to hop between small pools on the trail.

For historians, the watchtowers, fort and mosque all restored in 2001 can be seen at the heritage village as well as Bait Al Wali, the local ruler’s house that has been furnished with traditional fittings and artefacts.

A visit to Hatta is best ended with a sunrise hike in the local conservation reserve.

Lucky hikers might spot a glimpse of the Arabian Tahr or sand cat, but all will be rewarded with mountain views that stretch for miles. gulfbusiness.com

“LEAP will be the most iconic and seismic tech event for a generation” ABDULLAH AMER AL-SWAHA, SAUDI ARABIA’S MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY