Gulf Business - December 2023 by Motivate Media Group

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GULF BUSINESS AWARDS 2023 REVEALED: WINNERS AND KEY HIGHLIGHTS OF THE GULF BUSINESS AND WEB3 AWARDS

P.22 VISION AND

AMBITION: Saudi Arabia's ROSHN Group aims to build 400,000 homes by 2030

P.60 RACING THE GAME: McLaren's new CEO is geared up to transform the future of the supercar brand

TAKING CHARGE

DA M AC'S A MIR A S A J WA NI IS FIR MLY FOCUSED ON BUIL DING T HE GROUP'S GLOBAL FOOTPRINT WHILE PURSUING HER OW N DR E A M PRO JE C T S A M A LI PROPE R T IE S A ND PRY PCO

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Gulf Business

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

43 Special Report: Gulf Business Awards 2023 Key highlights of the recent Gulf Business Awards and Gulf Business Tech Web3 Awards

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All in the family Pic: Supplied

One of four siblings, Amira Sajwani has been entrusted with the strategic oversight and direction of DAMAC projects’ sales and development aspects

December 2023

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CONTENTS / DECEMBER 2023

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Lifestyle

Fast forward: McLaren’s new CEO shares the automaker’s aspirations p.60

Dig in: The founder of new restaurant Quince talks about food and design p.63

Watch and learn: Up close and personal with Audemars Piguet’s Bennahmias p.66

“Adaptation must be at the heart of our action. We must bridge the finance gap and agree on a robust framework for the global goal. Let’s put nature, lives, and livelihoods at the core of our national plans. Let’s finally face the issues that are critical to adaptation like water, food, agriculture, and health.” Dr Sultan Ahmed Al Jaber, COP28 President, UAE Special Envoy for Climate Change, and Minister of Industry and Advanced Technology

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The SME Story Interviews with entrepreneurs and insights from experts on how the regional SME ecosystem is evolving

Editor-in-chief Obaid Humaid Al Tayer Managing partner and group editor Ian Fairservice Chief commercial officer Anthony Milne anthony@motivate.ae Publisher Manish Chopra manish.chopra@motivate.ae Group editor Gareth van Zyl Gareth.Vanzyl@motivate.ae Editor Neesha Salian neesha.salian@motivate.ae Digital editor Marisha Singh marisha.singh@motivate.ae Senior feature writer Kudakwashe Muzoriwa Kudakwashe.Muzoriwa@motivate.ae Senior art director Freddie N. Colinares freddie@motivate.ae Senior art director Olga Petroff olga.petroff@motivate.ae

General manager – production S Sunil Kumar Production manager Binu Purandaran Production supervisor Venita Pinto Senior sales manager Sangeetha J S Sangeetha.js@motivate.ae Group marketing manager Joelle AlBeaino joelle.albeaino@motivate.ae

Cover: Freddie N Colinares

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December 2023

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Sustainable Farming ESG Net-Zero Journey Construction Alan’s Corner

08 10 14 22 26

11/15

US$10-20M

Keen to purchase a residential property in Dubai

Average budget set to buy a home in Dubai by most Indian HNWIs

DEC

CREEK HARBOUR

Most popular target location for a branded residence in Dubai

5 TO 10%

Annual capital value appreciation expected by Indian HNWIs in 2023

*High-Net-Worth Individual (HNWI)

The Brief

INDIAN HNWI* VIEWS ON DUBAI’S RESIDENTIAL MARKET

SOURCE: SOURCE: KNIGHT FRANK, YOUGOV

A land of opportunities Saudi Arabia is in the midst of a multi-year transformation that is attracting attention from investors around the world p.16 gulfbusiness.com

December 2023

The Brief / Sustainable Farming

Despite her efforts, breaking male dominance in agriculture is hard in a sector that relies on women’s labour but does not recognise them as “farmers” - an identity linked to land ownership which most rural Indian women lack. “(Men) farmers didn’t listen to us when we started, as they felt we didn’t know anything,” said Devi, sitting cross-legged at a farmers’ support centre, showing a colourful chart documenting her project’s performance in Chevaturu village.

ILLUSTRATION: GETTY IMAGES/ AJIJCHAN

A COLLECTIVE EFFORT

Stepping up to the challenge

How women farmers are the ‘super-heroes’ in India’s climate fight

armer K Rama Devi spends her days teaching climate-resilient agriculture skills, an unassuming champion of women’s rights in a rural part of South India where men still make key decisions. The head of a self-help group in Andhra Pradesh state, Devi has never marched in a climate rally nor lobbied world leaders, instead focusing her efforts on the practical details of growing crops in a world suffering the effects of more extreme weather. The 34-year-old advises fellow female farmers on how to mix manure and grow multiple crops on their land and issues warnings that chemical fertilisers can harm their fields and health. 8

December 2023

She and others are trying to shift gender norms by building a movement of rural women’s collectives that are helping non-profits and local governments promote crops and methods to combat climate pressures and cut planet-heating farm emissions. For five years, members of Devi’s group have demonstrated how to make manure and screened videos about “natural farming” which avoids synthetic pesticides and fertilisers and instead utilises cow dung mixed with other ingredients. They have managed to get 312 of 786 farmers in their village to adopt natural practices on cotton, paddy and mango farms. “Men can’t do this kind of awareness. They only look at earning money. Women have a lot more patience. I feel happy doing this work,” Devi told the Thomson Reuters Foundation. More than 75 per cent of India’s rural women workers are in the agriculture sector but just 12 per cent of them own land, according to government data. Most women work as farm labourers or unpaid workers in family-owned fields. Their lack of status as farmers means they cannot access government support including subsidised loans, special credit cards and cash aid. Yet women are pivotal to the expansion of new agricultural techniques to tackle climate change for instance growing crops that are more resistant to heatwaves, downpours and droughts. REAL GAME-CHANGERS

“Women self-help groups are the game-changers. About 55 of our trainers are women,” said T Vijay Kumar, who leads a natural farming project in Andhra Pradesh and is also executive vice-chairman of a state corporation for empowering farmers. As the women’s groups can access bank loans, it has given them financial clout and improved their standing in villages. “Their involvement in decision-making in the household has improved. They are important to take this initiative (of natural farming) forward,” Vijay Kumar said. gulfbusiness.com

WOMEN SHOW THE WAY ON SOLUTIONS

Agriculture is India’s biggest employer - supporting the livelihoods of 250 million farmers and informal workers - but farming is getting harder as climate change hits harvests, fuelling debt, migration and farmer suicides. In response, natural farming projects have taken root in the country, but experts say their scale and success hinge on how well they can protect incomes among poor rural producers. Women’s collectives, with their extensive networks, are playing a pivotal role in convincing those farmers to go green. Of India’s 12 million self-help groups, serving 140 million households, 88 per cent are all-women, government data shows. To combat climate change, women’s collectives in eastern Odisha are bringing back millet - a longforgotten drought-resistant crop - while in northern Uttar Pradesh they are changing sowing techniques to help retain soil moisture. Many farmers in Andhra Pradesh, meanwhile, have long grumbled that they cannot find markets for their naturally grown vegetables, which are more expensive than regular produce. That situation motivated farmer Parisineni Thirumala, 29, to pile her vegetables onto her scooter and try her luck at selling them to school teachers in Maddhulaparva village. She is now hailed as a marketing genius thanks to her success in creating a new customer base of teachers, government officials and even local police. “I tell them the benefits of buying my produce it’s healthier and tastier,” she said as the sun set on her farm. Women in self-help groups are a precious asset in outreach for climate-friendly farming because they work in the business, speak the villagers’ language and understand their challenges. “Climate solutions will be incomplete and unsuccessful if they leave out women farmers. And women are finding an opportunity to get into leadership roles,” said farmers’ rights campaigner Kavitha Kuruganti of the Alliance for Sustainable and Holistic Agriculture.

OF INDIA’S 12 MILLION SELF-HELP GROUPS, SERVING 140 MILLION HOUSEHOLDS

88 PER CENT

ARE ALL-WOMEN

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“THEY ARE THE ACTUAL MANAGERS OF THE FARM BUT THEY ARE NOT YET TREATED AS FARMERS. THEY ARE GRADUALLY BEING RECOGNISED, BUT (THERE IS) STILL A LONG WAY TO GO.” OF EMISSIONS, MEN AND MIGRATION

AGRICULTURE IS INDIA’S BIGGEST EMPLOYER SUPPORTING THE LIVELIHOODS OF 250 MILLION FARMERS AND INFORMAL WORKERS

Worldwide, agriculture accounts for 17 per cent of total global greenhouse gas emissions, with Brazil, Indonesia and India the top three emitters, according to a 2021 UN report citing data from 2018. Emissions from agriculture in India began to rise after the introduction of high-yielding rice and wheat varieties about six decades ago, as part of a drive to combat hunger and poverty. “Farming became market-intensive and men dominated it,” said Shiraz Wajih, president of the nonprofit Gorakhpur Environmental Action Group. But increasingly fickle weather linked to climate change and rising spending on chemical fertilisers have made farming ever more risky as a profession. That has spurred many men to migrate to cities, hoping to find more reliable and better-paid work. As a result, women left behind in villages have assumed responsibility for farming, Wajih said. “They are the actual managers of the farm but they are not yet treated as farmers. They are gradually being recognised, but (there is) still a long way to go,” he added. Rural-to-urban migration has added to women’s domestic burden - be it on farms or looking after their families at home. “Women are better workers ... but there can’t be complete invisibility of what’s already on their plate,” said gender expert Monika Banerjee, a senior consultant with nonprofit Mobile Creches, which works with marginalised children. “Women are expected to be climate super-heroes, but lack support and their work is often devalued.” Warnings about extreme weather, for instance, are sent to mobile phones mostly owned by men, with fewer than half of rural women having access to a phone, while big decisions like choosing crops or seeds still rest largely with male relatives. But farmer Devi remains undeterred - even if it means asking women to convince their husbands to change cultivation methods. “We are getting a good response,” she said. “Our importance is growing.” Reuters December 2023

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Setting an example In the pursuit of sustainable capital markets, GCC stock exchanges are leading the adoption of best-in-class ESG and investor relations practices

ithin today’s context of consumer activism, social media journalism, the climate crisis, and global economic instability, corporations now face an existential imperative to adopt best practices in environment, social, and governance (ESG) protocols. For companies listed on stock exchanges, ESG standards, disclosures, and reporting have become an operational and strategic necessity. To help issuers act as good corporate citizens and demonstrate their accountability to shareholders, stock exchanges are now playing a growing role in offering educational and practical support services to ensure that the companies listed on their exchanges meet ESG standards. 10

December 2023

THE GEOPOLITICAL IMPERATIVE While there are multiple reasons why exchanges are accelerating their support for issuers in the adoption of ESG best practices, the global geopolitical and economic context is an important factor. With rampant global inflation, soaring interest rates, and volatile bond markets, investors have consistently struggled over recent years to achieve portfolio stability and growth. There are fewer safe havens, fewer stable asset classes, and much more market volatility. For these reasons, investors need greater assurance that they are placing their funds in responsibly managed businesses capable of staying the course. Thanks to the region’s continued economic growth and multiple national economic visions,

THANKS TO THE GROWTH OF IPO ACTIVITY IN THE GCC, INVESTORS FACE A GROWING NUMBER OF OPPORTUNITIES IN WELL-REGULATED AND OFTEN FORMERLY STATE-OWNED ENTITIES gulfbusiness.com

The Brief / ESG Marwa Faisal AlMaskati, board member at Middle East Investor Relations Association (MEIRA) and senior director of Marketing & Communications, Bahrain Bourse

many investors are turning to GCC exchanges as an opportunity to source responsibly managed, ESGcompliant investments. Furthermore, thanks to the growth of IPO activity in the GCC, investors face a growing number of opportunities in well-regulated and often formerly state-owned entities. With a vested interest in growth and stability, GCC stock exchanges have a significant role to play in helping issuers instill best practices in both ESG and investor relations. Many are working to promote responsible investing and the concept and benefits of sustainable finance products and services. These support services inject the critical dynamics of stability and transparency into how public companies are run – and in their ability to deliver sustainable growth and shareholder returns. PROMOTING RESPONSIBLE INVESTING It is through the prism of sustainable growth that stock exchanges are applying increased scrutiny on ESG credentials and supporting best practices in investor relations. To deliver a sustainable future for all, stock exchanges are supporting issuers in numerous ways. They include networking platforms for the sharing of ESG knowledge and experience, educational resources to guide companies on ESG protocols and procedures, and mandatory disclosures and reporting requirements. Third-party players such as the Middle East Investor Relations Association (MEIRA) also play an important role in partnering to help exchanges support their issuers. Right across the region, MEIRA is working to support companies in their professional development and certification programs – many designed to advance companies’ ESG reporting and investor relations practices. SUPPORTING SUSTAINABLE CAPITAL MARKETS The Bahrain Bourse itself is one of many GCC exchanges to develop a comprehensive suite of ESG

FROM A REGIONAL PERSPECTIVE, INVESTORS CAN ALSO GAIN COMFORT FROM KNOWING THAT ALL EXCHANGES IN THE GCC ARE ‘ON THE SAME PAGE’ WHEN IT COMES TO TRANSPARENCY, ACCOUNTABILITY, AND ACCESS

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“THERE ARE FEWER SAFE HAVENS, FEWER STABLE ASSET CLASSES, AND MUCH MORE MARKET VOLATILITY. FOR THESE REASONS, INVESTORS NEED GREATER ASSURANCE THAT THEY ARE PLACING THEIR FUNDS IN RESPONSIBLY MANAGED BUSINESSES CAPABLE OF STAYING THE COURSE.” reporting guides. The exchange’s ‘ESG Reporting Guide: Supporting sustainable capital markets’, provides a set of reporting guidelines to encourage and assist listed issuers in providing ESG information that investors can use to inform their investment decisions – with tools to promote transparency and accountability. This year, the Central Bank of Bahrain also announced it would be mandating ESG reporting for listed entities starting in 2024. From a regional perspective, investors can also gain comfort from knowing that all exchanges in the GCC are ‘on the same page’ when it comes to transparency, accountability, and access. The digital exchange platform, Tabadul, which was developed by the Abu Dhabi Securities Exchange in 2022, is indicative of how seriously the region’s exchanges take cooperation, knowledge sharing and accessibility. It provides a digital exchange network for trading between member exchanges at the regional and global levels, aims to increase liquidity and paves the way for a sustainable future economy for the region and beyond. With such an increasingly sophisticated ecosystem of ESG and investor relations players, stock exchanges across the GCC are primed to support issuers through a comprehensive set of best practice support mechanisms. For any listed business, and investors from around the world, robust ESG practices are now baked-in – and fundamental to long-term growth and sustained shareholder value. December 2023

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A pathway to wealth creation AIX Investment Group’s bond offers predictability, a rare and valuable commodity in the volatile world of finance

any things changed with the news of acute banking stress in Europe and the US earlier this year, but not all of which were obvious at the time. Since early March bonds and growth stocks have rallied, and for the first time since 2021 wealth managers are saying bonds have resumed their role as an equity hedge.

In the ever-evolving landscape of global finance, finding investment avenues that not only promise returns but also offer stability and security is crucial to advancing wealth creation. AIX Investment Group’s (AIX) bond offering stands out as a powerful tool for investors looking to secure and grow their

wealth, among the myriad investment options available in the market. A BUSINESS AND INVESTMENT HUB Dubai’s journey from an oil-dependent economy to a diversified and vibrant financial hub is nothing short of remarkable. The emirate’s economic diversification strategy has paved

BRAND VIEW

With a global perspective and an understanding of market trends, AIX provides investors with a comprehensive view of their opportunities. This commitment to holistic support ensures that investors are not just participants in transactions but beneficiaries of lasting relationships aimed at achieving their financial goals.” the way for ambitious infrastructure projects, cutting-edge commercial hubs, and a maturing property market. The extent of Dubai’s economic diversification efforts goes beyond traditional sectors and has opened doors for investors in new sectors including technology, renewable energy and manufacturing. In this dynamic environment, the bond offering emerges as a strategic choice, aligning with the city’s commitment to economic stability and innovation.

Getty Images

LEVERAGING THE BOND AIX’s bond offering is designed to empower investors by providing a secure and predictable avenue for wealth growth. With an 18 per cent annual yield, a fixed quarterly coupon rate of 4.5 per cent, a 36-month maturity period, and 100 per cent principal protection, the bond offers a unique blend of high returns and capital security. The investment vehicle is a testament to AIX’s commitment to offering investors not just financial

investment, makes the bond offering an attractive option for those seeking to empower their wealth without exposing themselves to unnecessary risks.

products but opportunities that align with their wealth-building goals. PREDICTABILITY IN A VOLATILE MARKET In the volatile world of finance, predictability is a rare and valuable commodity. The AIX bond provides just that. The fixed quarterly coupon rate ensures a steady income stream for investors, irrespective of market fluctuations. This predictability, coupled with the security of the principal

A HOLISTIC APPROACH AIX goes beyond providing ordinary financial services; it stands as a reliable partner in clients’ wealth-building journey. The group offers expertise and guidance through unique structures. With a global perspective and an understanding of market trends, AIX provides investors with a comprehensive view of their opportunities. This commitment to holistic support ensures that investors are not just participants in transactions but beneficiaries of lasting relationships aimed at achieving their financial goals. CAUTIOUS OPTIMISM While Dubai’s investment landscape gleams with promise, it is essential to approach wealth-building with a level of cautious optimism. As with any investment, meticulous research, expert advice, and a comprehensive evaluation of personal financial goals are paramount. AIX, with its transparent approach and commitment to capital protection, provides investors with the tools to navigate potential risks, making the journey toward empowering your wealth potential a calculated and strategic one. In this context, the bond offering from AIX acts as a powerful instrument for investors seeking to empower their wealth potential in Dubai’s dynamic financial landscape. With a focus on stability, predictability, and expert support, this investment opportunity underscores the group’s dedication to providing more than just financial products – it offers a pathway to lasting financial empowerment.

The brief/ Net-Zero Journey COMMENT

ILLUSTRATION: GETTY IMAGES/ TEMIZYUREK

transnational integration of energy systems are still limited. This can be attributed to several factors - technical issues with interconnections, varying regulatory structures in the countries involved, and inability to articulate clear benefits and ascertain returns on investment (ROI) of the interconnection investments. However, most of these challenges can be overcome if there is strong vision, determination, and strong backing from the political establishment of the countries concerned. As can be seen with Europe, an existing political union will accelerate the integration of energy systems in a region. Factors such as uncertainty of energy supply and demand exasperated by climate change, energy transition and net zero commitments, the opening of new trade routes, and geopolitical chaos are some of the reasons why regional or even crossregional partnerships are becoming important and inevitable now.

In it together

Why now is the time to build regional partnerships to accelerate the net-zero transition

hen delegates from across the world meet in Dubai for the COP28 climate talks at the end of November, the year 2023 will be on course to become the hottest year on record. Issues like limiting global warming, decarbonisation, climate finance, clean energy transition, etc. are expected to dominate the agenda. Here we look at an important topic - regional partnerships – whose time seems to have come, and one which can help address several issues at once. WHY ARE REGIONAL PARTNERSHIPS IMPORTANT AND WHY NOW? Energy systems are considered as critical national assets playing a significant role, both for the economic development and security of any country. While global and regional trade in energy commodities is a well-developed and mature market, instances of regional and 14

December 2023

RENEWABLE INTEGRATION According to BloombergNEF, global new investments in renewable energy during H1 2023 were $358bn, the highest for any six-month period. The surge in investments into renewable energy globally has continued unabated despite Covid-19, high-interest rates and other economic headwinds. However, the intermittent nature of solar and wind energy (which form the bulk of new renewable investments), plus pressure to retire highly polluting coal power assets mean that countries must look at options beyond energy storage, which itself is still expensive, for them to balance demandsupply, avoid renewable curtailment and maintain grid stability. Here is where regional integration will have a major impact. The electricity traded between Gulf Cooperation Council (GCC) countries has been gradually increasing in the last decade, in tandem with the growth in the installed capacity of renewable energy. GCC Interconnection Authority (GCCIA), which builds and operates interconnection between the six countries estimates the potential for regional electricity trade to be about $1bn per annum. Being at the geographical intersection of Asia, Europe and Africa, the region has even grander plans. GCCIA believes the GCC region could become the hub for cross-continent energy exchange through a super grid. Such a super grid would leverage the diversity in terms of renewable sources of generation, seasonal variations, various stages of respective economies and lastly, the population variations between the different regions, to identify complimenting aspects of demand & supply. gulfbusiness.com

Ravi Krishnaswamy, SVP and global leader - Sustainability Advisory, Frost & Sullivan

CLIMATE CHANGE AND NET ZERO COMMITMENTS So far more than 100 countries have either already set net-zero targets or are considering them. Even if all these countries follow through on their commitments, Climate Action Tracker predicts that it would limit global warming only to 1.8°C above pre-industrial levels, which is still way above the 1.5°C envisaged by the 2015 Paris Accord. To make good on their pledges, countries must explore various innovative options – be it technological, regulatory, or financial mechanisms. Regional cooperation and integration of energy systems is a strong candidate for this purpose. Singapore, a land-constrained city state with very limited renewable resources, has an ambitious plan of importing 35 per cent of its electricity requirements through cross-border imports of renewable energy to meet its 2050 net zero targets. The first significant regional flow of electrons was through the 100MW Lao PDR-ThailandMalaysia-Singapore (LTMS) Power Integration Project recently, thus acting as a catalyst for many such projects.

Energy Agency (IEA), the interconnected electricity systems in Europe are said to have delivered benefits of nearly EUR30bn in 2021 when compared to isolated markets. Governments in Europe realised the benefits and have been backing these interconnections through memorandum of understandings (MOU), both at bilateral and regional levels. Apart from conveying the political commitments, these MOUs outline the objectives and future direction, thus setting the stage for cooperation between various stakeholders including regulators, investors, utilities, etc. Despite being considered a role model, Europe’s expected interconnection exchange capacity of 150GW by 2040 is likely to significantly fall short of its future power system needs of nearly 250GW, pointing to a potential upside opportunity. LONG TIME IN THE MAKING: ASEAN COUNTRIES Southeast Asian countries were ahead of time when they signed a MOU to establish the ASEAN Power Grid in 1997. The subject has regularly featured in various government-to-government, multilateral and private sector discussions for over two decades, but with limited activity on the ground. The actual energy flow between countries continued to be negligible. While ASEAN countries generate about 1,053TWh of electricity annually, the trade between countries is only 36TWh. These have been largely bilateral and unidirectional. Singapore’s push to import green energy from within the region and the commercial success of the venture is encouraging stakeholders in other ASEAN countries to seriously consider more such projects.

ENERGY SECURITY For countries that either do not have adequate domestic energy resources or have challenges in developing them, regional interconnections can provide security of supply and in effect support economic growth. GCCIA has awarded contracts for $220m to develop interconnections with Iraq to strengthen energy trading. Iraq is facing significant blackouts because of Iran’s inability to supply necessary gas. Moreover, the US government has been pressuring Iraq to move away from its dependence on energy imports from Iran, which is under sanctions. Iraq whose energy security is impacted by geopolitics and the underdevelopment of domestic infrastructure, has secured about 1000MW of electricity from Saudi Arabia and an additional quantum from Qatar through new interconnection projects. INTERCONNECTION ARCHETYPES The major regions of the world with significant potential and likely to benefit from interconnections and regional partnerships can be classified into following archetypes: PIONEERS – EUROPE Europe is the pioneer in regional interconnection and has the world’s largest integrated electricity market with nearly 400 physical interconnectors linking about 600 million people. According to the International gulfbusiness.com

THE SURGE IN INVESTMENTS INTO RENEWABLE ENERGY GLOBALLY HAS CONTINUED UNABATED DESPITE COVID-19, HIGH-INTEREST RATES AND OTHER ECONOMIC HEADWINDS

ASPIRATIONAL AND AMBITIOUS: MIDDLE EAST Apart from GCCIA’s initiatives, several countries in the Middle East have their aspirations to be a hub for sub-regional and cross-continental energy systems. Egypt is positioning itself as a regional energy node through agreements with Europe (Greece and Cyprus for a 3GW interconnection), Saudi Arabia (for a two-phase 4.5 GW interconnection) and other MENA countries (smaller capacities with Libya, Jordan and Sudan). Saudi Arabia is even more ambitious and has signed agreements for exploring the interconnection of its electricity networks with a wide geographical spread of countries from India to Greece. Despite all the talk of decoupling and deglobalisation in the context of world trade, we are likely to see increased cooperation, partnership, and integration of energy markets and this is one of the critical pathways to accelerate towards a net-zero world. December 2023

The Brief / Saudi Arabia

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COMMENT

Kingdom of opportunities

Saudi Arabia is in the midst of a multi-year transformation that is attracting attention from investors around the world

he Saudi Arabian economy has been highly correlated to the price of oil, due to its abundant supply of this rich resource, but this correlation is declining as the government is successfully working toward a more diversified economy. Non-oil GDP growth has been outpacing oil GDP growth by a wide margin over the past year (see Figure 2). This diversification improves the country’s attractiveness in global investors’ eyes, ensuring potentially less volatile returns and a lower risk profile. However, oil will remain a key driver of the market as Saudi Arabia holds 15 per cent of the world’s proven oil resources, is the largest exporter of crude oil in the world, and maintains the world’s largest crude oil production capacity at nearly 12 million barrels per day. 16

December 2023

A DIVERSE AND SUSTAINABLE ECONOMY Furthermore, the country is investing to increase its production capacity in oil and gas, and the kingdom has ambitions to become a global powerhouse in clean hydrogen from renewables and fossil fuel-based variants. An $11tn global commodity market for clean hydrogen is predicted to develop over the next 30 years. We see that Saudi Arabia is working to balance growth in conventional hydrocarbon production with investments in sustainable alternatives for the future, and in 2016, Saudi leaders launched Vision 2030, a plan for the future that utilizes the kingdom’s investment power to create a more diverse and sustainable economy. This includes liberalising the labour market, financial markets, and the kingdom’s social code. The focus going gulfbusiness.com

Michelle Middleton, CFA and research analyst, State Street Global Advisors

“AS PART OF VISION 2030, THE SAUDI ARABIAN GOVERNMENT WILL BE IMPLEMENTING SMART CITY PROJECTS IN 10 CITIES. NEOM, THE LINE, IS ONE OF THESE PROJECTS AND IS THE MOST AMBITIOUS PROJECT IN THE GCC (GULF COOPERATION COUNCIL) AND THE WORLD.”

forward includes increasing investment from both public and private sources in infrastructure, manufacturing, and services, with technology, digitization, and green energy being key priorities. As part of Vision 2030, the Saudi Arabian government will be implementing smart city projects in 10 cities. Neom, The Line, is one of these projects and is the most ambitious project in the GCC (Gulf Cooperation Council) and the world. This and other ‘Vision’ projects are expected to significantly increase the size of the economy and promote sustainable long-term economic growth. This should provide many investment opportunities. Saudi’s Public Investment Fund will be investing SAR1tn ($267bn) in new projects by 2025. For investors looking to gain exposure, financial institutions will be obvious beneficiaries of the construction awards that are due to come. SAUDI ARABIA’S ROBUST ECONOMY In a global context, the Saudi Arabian economy is in very strong shape. In 2022, the kingdom achieved GDP growth of 8.7 per cent, and is expected to continue to outperform global growth for the next couple of years. Inflation remains low while economic sentiment, non-oil-growth and employment momentum remain strong. Fixed investment is booming and consumer confidence is near record highs. Consumer spending continues to grow at a fast rate, up 17 per cent compared to a year ago. Although the correlation with oil is declining, it is still an important driver of the Saudi economy. The whole GCC region is a key beneficiary of the West’s declining dependency on Russian energy supplies. Saudi’s break-even oil price is currently around $75/barrel, down from $95 in 2015. However, to fund the massive amount of projects included in Vision 2030, a higher oil price will be needed. Saudi, through OPEC+, has a large influence on the price of oil globally. Due to this 20

Year-over-year %

FIGURE 2

Growth of Saudi’s Non-oil Economy

factor, average oil prices are expected to remain at elevated levels for the foreseeable future.

Real GDP Real Oil GDP Real Non-Oil GDP

5 0 -5 -10

2014

2016

2018

SOURCE: GASTAT, Bloomberg Finance L.P., as of June 30, 2023

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2020

2022

THE SAUDI STOCK MARKET The Saudi stock market (Tadawul) is dominated by banks and financial institutions, followed by materials, energy and communications. In the MSCI Emerging Markets Index, Saudi Arabia is the sixth largest market, and the largest in the MSCI Emerging Markets EMEA Index. A surge of initial public offering (IPO) activity has put the market in the spotlight, but has also created an overhang in the market as more IPOs and stake sales are expected over the medium term. Saudi had 36 IPOs in 2022 and hopes to list more than 24 companies on its stock exchange in 2023, according to the Capital Market Authority. These listings, plus the growth in value of the companies listed on the Tadawul stock exchange, have given investors many choices to gain exposure to the fast growing market. However, global emerging market (GEM) investors have been underweighting the Saudi market since its inclusion in the MSCI and FTSE indices several years ago. In fact, foreign ownership remains low at 3.46 per cent, and more than 40 per cent of GEM funds own zero Saudi stocks, the biggest underweight of any major EM market. This tide is finally turning as foreign institutions have been the biggest net buyers 1924 of the market year-to-date in 2023. December 2023

The Brief / Saudi Arabia COMMENT

180

Labor Participation Rate

160

FIGURE 3

140

Female Labour Force Growing in Saudi Arabia

120 100 80 Female

Male

Q2 2016

Q1 2017

Q4 2017

Q3 2018

Q2 2019

Q1 2020

Q4 2020

Q3 2021

Q2 2022

Q1 2023

SOURCE: GASTAT, Bloomberg Finance L.P., as of June 30, 2023

Removal of foreign ownership limits, which is under discussion, could be a catalyst for up to $9bn of passive inflows.

Also, new entertainment venues that had previously been restricted, such as cinemas, arcades, and concert venues, have opened. This is changing the way the consumer is spending money, something that the FGC team is considering in investment decisions. Consumption should remain solid, underpinned by a firm labour market, higher labour force participation rates, and exceptionally strong business sentiment. Unemployment fell to a historical low of 8 per cent late in 2022 from 11 per cent a year earlier (see Figure 4). Finally, the kingdom now has much easier visa requirements, which is favourable toward more tourism, religious pilgrimage, and business travel — this should have a very positive impact on the economy.

TAILWIND FROM FAVOURABLE DEMOGRAPHICS The Saudi market offers a very attractive demographic profile; social and cultural changes are also enhancing the appeal of the market. GCC nations are young, affluent, and witnessing demographic shifts that include smaller households and rising female labour participation rates. The average age of the Saudi population is 30 years. Fertility rates are relatively high at 2.5 live births per woman. Social reforms are changing the country with women now permitted to drive, work, and attend events where men are present.

FIGURE 4 Percent

Percent

Improving Employment Dynamics

55 50

14 45

12 10

8 6

4 30

2 0

Unemployment Rate, lhs

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Participation Rate, rhs

SOURCE: GASTAT, Bloomberg Finance L.P., as of March 31, 2023

December 2023

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THE BRIEF

INTERVIEW

PICS : SUPPLIED

promote financial inclusion, and drive economic growth that benefits all stakeholders. What sets us apart is the integration of sustainability into our corporate DNA. Our commitment is not just a statement; it’s reflected in our actions. For instance, we’ve tied our bonuses to achieving sustainability targets, emphasizing the significance of these goals to our company’s success. What sets its approach apart from other industry efforts?

Charting the future A CONVERSATION ON SUSTAINABILITY, INNOVATION, AND CORPORATE RESPONSIBILITY WITH ANDREA PRAZAKOVA, SENIOR VICE PRESIDENT AND ESG FOR EEMEA, AT MASTERCARD BY MARISHA SINGH

What are the key elements

sustainable living and how Q ofcompanies can support such measures?

Sustainability encompasses a spectrum of actions, from individual habits to systemic changes. It’s not just about personal choices like recycling or using reusable products, although those are crucial. Companies play a pivotal role by integrating sustainability into their core values and operations. This means investing in green technologies, reducing carbon footprints, and fostering inclusive practices. Banks and financial institutions can encourage sustainability by offering incentives for eco-friendly choices, making it financially rewarding for individuals and businesses to opt for sustainable solutions. Municipalities also play a key role in infrastructure and policies that support sustainability. Ultimately, it’s a collaborative effort to make sustainability accessible and impactful across all levels of society.

However, I’m also aware of the challenges associated with sustainability, particularly the cost factor. I faced a dilemma during a recent trip when I found that a more sustainable travel option was significantly more expensive. This highlighted the disparity in accessibility when it comes to sustainable choices. It’s a constant balancing act between personal convictions and practical limitations. As a corporate executive and a mother, how do you balance decision-making?

Balancing different roles can be a juggling act at times. Sustainability, for me, extends beyond environmental aspects; it includes personal well-being and the health of my family. Finding that equilibrium involves prioritising what matters most and making decisions that align with my values. It’s an ongoing learning process, and I continually reassess and refine my approach as I navigate these various responsibilities.

How do you personally engage in sustainability?

What is Mastercard’s approach to sustainability?

My approach to sustainability is multifaceted. I make conscious choices in my daily life, such as opting for secondhand or eco-friendly products whenever feasible.

At Mastercard, our approach revolves around three core pillars: planet, people, and prosperity. We’ve set ambitious goals to contribute positively to the environment,

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Mastercard’s distinctiveness in sustainability stems from our holistic and inclusive approach. We’ve established a dedicated sustainability innovation lab that explores cutting-edge technologies to address environmental and social challenges. Our services are designed to be comprehensive and accessible, transcending specific brands or sectors. Inclusivity is at the core of our sustainability initiatives, aiming to involve as many stakeholders as possible in our efforts towards a sustainable future. How does technology intersect with sustainability at Mastercard?

Technology is a powerful catalyst for sustainability at Mastercard. Innovations like AI, blockchain, and data analytics are instrumental in driving positive change. AI, for example, has the potential to revolutionise finance by customising products and services based on sustainable choices. We’re also exploring the use of satellite data to evaluate household energy consumption, enabling us to offer more tailored and eco-conscious solutions. What about data security and AI misuse concerning sustainability?

Data security is a critical aspect, especially when integrating AI and other technologies into sustainability initiatives. At Mastercard, ensuring the security of transactions and data is paramount. This holds particular importance in the evolving landscape of cryptocurrencies, where securing transactions and maintaining data integrity is vital. We’re dedicated to assisting companies in crafting robust data strategies that ensure responsible and ethical data usage, thus contributing to both data security and sustainable business practices. December 2023

BRAND VIEW

Climate finance: An educator’s perspective Professor Dame Heather J McGregor, provost and vice principal at Heriot-Watt University Dubai, shares her insights on the significance of climate finance and how it will continue to play a critical role in the global net-zero journey

he great opportunity provided by COP28 (and indeed any Conference of the Parties assembling to discuss progress on the climate emergency) is that the spotlight will be on the existential challenge to which we have a single generation to deliver a solution. Scientists from all over the world gather at any COP, especially this year’s one, held in Expo City in Dubai. We, at Heriot-Watt University Dubai, are hosting our Climate Hub, essentially two floors of our building turned over to clean tech demonstrations and a range of programming, talks and debates to complement those happening in the Green Zone. I shall encourage all my students to attend - and not just the ones studying science. The climate emergency needs my students of finance and accounting every bit as much as it needs my chemical and electrical engineers. For a start, nothing will get out of the laboratory and into the mainstream without finance. Take Solariskit, for example, a flat-pack solar heater that was generated out of our incubator by one of our former researchers and which will be on display at our Climate Hub. It now manufactures in Scotland and Rwanda, but it wouldn’t have been possible without finance. Great climate change solutions need great financiers (and, for that matter, great marketers, human resources professionals, IT people, and supply chain specialists, to name but a few). What is climate finance and why is it critical? The term ‘climate finance’ generally refers to finance for activities aiming to mitigate or adapt to the impacts of climate change. Although there is no single definition of climate finance, the United Nations Framework Convention on Climate Change (UNFCCC) Standing

Committee on Finance provides the closest thing to an official version: “Climate finance aims at reducing emissions and enhancing sinks of greenhouse gases and aims at reducing vulnerability of, and maintaining and increasing the resilience of, human and ecological systems to negative climate change impacts”. This definition of climate finance represents the flow of funds to all activities, programmes or projects intended to help address climate change, for both mitigation and adaptation, in all economic sectors, anywhere in the world. However, this definition only includes finance flowing directly to assets and activities and leaves out financial market activity, such as bank loans to companies or investments in private and public equity in order to avoid ‘double counting.’ That means it doesn’t include, for example, the financing of Solariskit. What it would include, though, is the recently announced Loss and Damage Fund to compensate vulnerable countries for natural disasters caused by climate change. Once up and running, the fund will provide particularly vulnerable countries with funding to

support recovery from the impacts of climate-related disasters such as floods and droughts. The EU pointed out at the time that while welcome, the fund was not a solution in itself, and “no amount of money on this planet” will be enough to address the issue of loss and damage unless efforts were made to cut emissions. Benefits of the Loss and Damage Fund The fund will be capitalised by developed countries so that developing countries can meet the full and incremental costs of climate change and decarbonisation, an obligation enshrined in the Paris Agreement. Some studies estimate that developed countries need to finance at least $100bn a year towards this, and it will have to be a mixture of grants and loans, or it will be completely unaffordable. This is all very important, and COP28 will be heavily engaged in operationalising the Loss and Damage Fund, but I still believe that private and, indeed commercial finance has just as much a role to play in addressing the climate emergency. We need innovative bankers to come up with ways to securitise green bonds and create new pools of liquidity. Talking of green bonds, we need a global taxonomy to be adopted for all ‘green’ financial instruments. Finance works best when borrowers and issuers of equity have full and transparent reporting, and so we are training our accountancy students to understand what is meant by IFRS standards S1 and S2. Climate finance, in reality, is the sum of all the money that will be deployed to help the world to keep global warming to less than 1.5C that the majority of the world’s countries signed up for in Paris. And that, in my opinion, should include commercial finance. The International Labor Organization (ILO) has been for some time pointing to the millions of ‘Green Jobs’ that are being and will be, created – by one estimate, 24 million jobs by 2030. Many of those jobs will be in a laboratory. But many more will not be – they will be financing the laboratory and the scaling up of the ventures that come out of it. We need to ensure that we are training the politicians and the financiers of the future to deliver that climate finance, whatever definition you use. Which is why I will be encouraging all our students to attend the events in our Climate Hub.

INTERVIEW

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THE BRIEF

Building on a vision SAUDI-BASED ROSHN GROUP’S DAVID GROVER TELLS US HOW THE GROUP IS DELIVERING ON SAUDI VISION 2030’S GOALS BY BUILDING OVER 400,000 HOMES BY 2030 BY NEESHA SALIAN

n October, ROSHN Group, Saudi Arabia’s Public Investment Fund (PIF) giga-project, announced the opening of sales for Warefa, a new mixed-use residential community in Riyadh. The group also launched the third phase of sales of its flagship Sedra project, aiming to add 3,438 residential units to the 1,904 properties already offered for sale as part of the initial rollout. Sedra is ROSHN’s first integrated residential project in the kingdom, specifically Riyadh, and it is being developed in eight phases. Gulf Business spoke to the group CEO David Grover to learn more about the new sales launches and how the group is building on the objectives of Vision 2030. Tell us about SEDRA 3

WAREFA. What makes Q and them unique?

SEDRA 3 is the latest phase of our landmark 22

December 2023

development that introduced Saudi Arabia to ROSHN’s vision for a new way of life. Connected to Riyadh’s iconic ROSHN Front entertainment and business hub, SEDRA has rapidly become the capital’s most desirable community. WAREFA is an entirely new development that places residents in Riyadh’s promising, dynamic, and exciting Al Janadriyyah district, located in the east of the city and within easy reach of the capital’s key locations. Both SEDRA and WAREFA exemplify the new way of living ROSHN is bringing to Saudi Arabia, with the overarching goal to put people first, sustainably boost quality of life, and enable healthy, fulfilling lifestyles for both residents and visitors. Both projects integrate low-density, high-quality, and beautifully designed homes into real, people-first communities. Amid open areas that enable socialising and human interaction, vital and lifestyle

amenities are readily accessible along naturally shaded, ‘living streets’ designed for walking and cycling. This puts everything from hospitals and schools to restaurants and sports facilities on the doorsteps of residents while integration with the wider Riyadh transport network means these areas are also vibrant hubs for visitors too. Future-facing smart technologies maximise sustainability and livability, while cutting living costs. Yet, while both developments are future-facing SEDRA and WAREFA are also in touch with the unique heritage of the Riyadh region. Both incorporate natural features into their design, including acacia forests and wadis, while our architectural and design inspiration stems from Riyadh’s regional building vernaculars, materials, and colour palettes to create communities that draw a throughline from history, to the present, and onto the future with a complete, culturally informed aesthetic. What do these sales launches entail?

SEDRA 3 will add a total of 3,438 more homes to Riyadh’s most desirable community, with 1,904 units for sale in this initial sales tranche. Buyers will be able to choose between eight floorplans and eleven facades, available in single- or multifamily configurations and ranging from charming three- or four-bedroom townhouses and duplexes to spacious four- or five-bedroom villas. Meanwhile, in WAREFA we are launching a first tranche of 1,609 new homes from a total of 2,380 when the development is complete. These once again vary between duplexes townhouses, duplexes, and fouror five-bedroom villas. In both cases, sales will be made on a first-come, first-served basis without a waiting list, a departure from our previous sales launches and one based on customer feedback. Why are these projects important to Riyadh and Saudi Arabia?

For Riyadh, SEDRA 3 and WAREFA answer a demand for high-quality homes while also creating new hubs for quality of lifeboosting activities – from shopping to sports, education to dining out. In the case of WAREFA, this is the first integrated community in the vibrant and dynamic Al Janadriyyah district. At the gulfbusiness.com

BOTH SEDRA AND WAREFA EXEMPLIFY THE NEW WAY OF LIVING ROSHN IS BRINGING TO SAUDI ARABIA, WITH THE OVERARCHING GOAL TO PUT PEOPLE FIRST, SUSTAINABLY BOOST QUALITY OF LIFE, AND ENABLE HEALTHY, FULFILLING LIFESTYLES FOR BOTH RESIDENTS AND VISITORS.”

city’s eastern gateway, WAREFA will create new jobs and boost the local economy. Meanwhile, SEDRA 3 will have a similar impact while also standing as a new destination close to the existing ROSHN Front and other SEDRA phases. Taken together, they exemplify the openness, ambition, and vibrancy of modern Saudi Arabia and Vision 2030, with people socialising, living beyond walls, and embracing the fulfilling, healthy lifestyles we are pioneering within the kingdom. How do these contribute to Saudi Arabia’s Vision 2030 economic diversification, real estate sector growth, and creation of investment opportunities?

The real estate sector in Saudi Arabia is growing at an incredible rate and is expected to reach a value of SAR241bn this year and reach SAR353.21bn by 2028, as a result it is a major pillar of the kingdom’s economic diversification programme, contributing some 7 per cent to annual GDP. We are proud to be helping drive this growth through our projects and broadening the sectors positive economic impact by partnering with local suppliers to increase wider economic resilience. At a foundational level, our real estate projects directly and indirectly create jobs – both within the sector and as a result of our developments. We have already created

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thousands of direct jobs and made significant GDP contributions in-line with our commitments to Vision 2030 job creation and GDP contribution goals. Turning to the partnerships we form with local suppliers to strengthen our supply chain, we’ve implemented over 70 collaborative partnership framework agreements worth well over SAR2bn and are looking ahead to more than 100 more identified opportunities across sub-developers, factories, infrastructure and technology providers. Finally, our mixed-use developments – which include F&B outlets, office space, hotels and hospitality services, education, healthcare and wellness, and digital services and ICT – are also opening up new domestic and foreign direct investment opportunities in the kingdom. We are creating ecosystems where job creators can themselves thrive, safe in the knowledge that we are a trustworthy preferred partner as testified by our recent Chartered Institute of Procurement & Supply (CIPS) Ethical Kitemark for procurement, further diversifying the kingdom’s economy in-line with its Vision 2030 goals.

spaces. SEDRA meanwhile, includes a similar range of amenities, as well as offering privileged access to the ROSHN Front lifestyle shopping and business district of Riyadh. How are these sales contributing to Saudi Arabia’s Vision 2030 goals?

These sales launches represent another vital step by ROSHN towards realising our commitments to Saudi Vision 2030’s goals to see 70 per cent home ownership by building over 400,000 homes by 2030. Furthermore, with our multi-asset offer, both SEDRA and WAREFA will boost quality of life and support economic growth by creating jobs and boosting promising sectors. Yet, as a PIF-powered giga-project, we also seek to set a positive example for developers in the region. WAREFA, for example, has achieved Diamond Mostadam sustainability ratings, the highest possible recognition within the kingdom, while we have also set regional firsts with Smart City and Procurement Kitemark standards, as well as signing up to the UN Global Compact on responsible business practices, enshrining ten universally accepted principles in the areas of human rights, labour rights, environmental protection, and anti-corruption efforts into our strategy and day-to-day work.

How do these sales launches fit into the group’s wider strategy?

What are your next steps and future plans?

We are expanding into nine real estate verticals, including community retail, lifestyle retail, commercial, education, leisure and entertainment, hospitality, regeneration programs, healthcare facilities, and mosques. This is central to our strategy of becoming a globally significant multi-asset real estate developer. Both SEDRA 3 and WAREFA are part of this expansion, with WAREFA offering schools and childcare facilities, covering early childhood through to secondary school, a public hospital, mosques, and a district mall alongside a wide range of commercial, food and beverage, and retail

We have a pipeline of exciting, transformative, mixed-use developments still to be announced, as well as ongoing work on the coming phases of those projects we have already launched. One of these is our MARAFY project in Jeddah, which will soon become an iconic mixed-use residential, retail, and F&B destination within the Kingdom. The centerpiece of MARAFY will be an 11km canal – the first of its kind in Saudi Arabia, connecting the city to the Red Sea, allowing for convenient water transportation and the hosting of world-class water sports facilities. With Vision 2030 guiding us, it’s an exciting time for all of us in the kingdom, and for us at ROSHN, we’re proud to be part of it. December 2023

ILLUSTRATION: GETTY IMAGES/ WE ARE

COMMENT

Set the mood for success We explore how a leader’s mood and accompanying behaviours can be potent drivers of business success

’ve seen it and I’m sure you have – when the boss is in a foul mood, it percolates throughout the organisation, and if they are in a good mood, this has the reverse effect. Psychologist Marcial Losada, through detailed mathematical modelling has shown that 2.9013 is the ratio of positive to negative interactions required to make a corporate team successful.

December 2023

In other words, it requires about three positive comments, experiences or expressions to ward off the corrosive effects of one negative one. Anything below this will result in performance tanking, whilst teams perform at their best when the ratio is 6 to 1. Losada conducted several field studies and for one mining company, which was suffering process losses greater than 10 per cent, the ratio was 1.15. He instructed team leaders to provide more positive feedback and encouragement which saw the average ratio increase to 3.56 – the result, the firm made significant improvements in production, improving performance by over 40 per cent. If you as a leader want to boost the mood of your employees, you first need to boost your mood. To do so, you can try several practical approaches: gulfbusiness.com

The Brief / Productivity Rehan Khan, author and founder and CEO of Improve Executive Focus

“IT REQUIRES ABOUT THREE POSITIVE COMMENTS, EXPERIENCES, OR EXPRESSIONS TO WARD OFF THE CORROSIVE EFFECTS OF ONE NEGATIVE ONE. ANYTHING BELOW THIS WILL RESULT IN PERFORMANCE TANKING, WHILST TEAMS PERFORM AT THEIR BEST WHEN THE RATIO IS 6 TO 1.”

WHEN WE SPEND MONEY ON EXPERIENCES, PARTICULARLY INVOLVING OTHER PEOPLE IT PRODUCES MORE POSITIVE MEANINGFUL AND LASTING EMOTIONS

PONDER AND REFLECT: Slow down, take time to reflect and if you have a meditation practice in the tradition you come from, try and develop this. There is enough neurological evidence available to show that regular meditation practice rewires the brain, strengthening neural connections, lowering stress levels and improving immunity. ANTICIPATE THE JOY OF AN UPCOMING ACTIVITY: Researchers found that subjects’ endorphin levels increased by 27 percent when they just thought about watching their favourite film. When you think about something you are looking forward to - an upcoming holiday, a meal out with friends, a visit to see family, it boosts your mood. SHOW KINDNESS. Several studies have shown that when we are kind to friends and strangers, this decreases stress and improves mental wellbeing. Sonja Lyubomirsky, author of The How of Happiness, documents that individuals told to complete five acts

EVEN 20 MINUTES spent outside in good weather boosts positive mood

Researchers found that subjects endorphin levels

INCREASED BY 27 PER CENT

when they just thought about watching their favourite film

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of kindness throughout the day reported feeling much happier than control groups and that the feeling lasts for several days. STEP OUTSIDE. Researchers in one study found that even 20 minutes spent outside in good weather boosts positive mood, broadens thinking and improves working memory. Encourage employees to step out of the office, it will help to boost performance. And definitely avoid lunches at the desk. AVOID NEGATIVITY. Ask yourself whether you really need to watch all of the doom and gloom on television. Studies show we are far happier when we avoid television in general and violent programmes in particular. Psychologists suggest that people who watch less television have a better sense of life’s risks and rewards than those who watch crime programmes, tragedy, and death. They explain this by saying that the abstainers are less likely to view one-sided sensationalised information, and so have a clearer grasp of reality. ENJOY EXPERIENCES. Positive feelings from material objects are fleeting, contends Robert Frank in his book Luxury Fever. However, when we spend money on experiences, particularly involving other people it produces more positive meaningful and lasting emotions. In one study researchers reported that people who spent money on experiences with others, such as concerts or group dinners, found far more pleasure from these activities than they did from material purchases like clothes, electronics, or expensive watches. Remember your mood at work affects the mood of others around you and so impacts the profitability of the organisation, as well as its culture. December 2023

Alan’s Corner Alan O’Neill Managing director of Kara, change consultant and speaker

Master the art of selling disruptive concepts

ILLUSTRATION: GETTY IMAGES/ DICKCRAFT

Discover the key tips that can propel your innovative ideas to success in a rapidly evolving marketplace

ecause ‘disruption’ gets a lot of airtime lately, you would think it’s something new. Apple, Amazon, Netflix and Uber are all classed as disruptors that have changed our lives significantly. But didn’t the train change transport two hundred years ago and tractors help to modernise farming over a hundred years ago? We have so many more examples of products and concepts that are changing the world forever. The real issue with modern disruption is the pace and the scale of impact. For inventors of new concepts and technology, a big challenge they face is in commercialising their product and then actually get customers to buy it. The level of difficulty depends on the complexity of the product. The first-ever electric washing machine for example, probably only required three pictures to tell the story. One with dirty laundry, one of the machines itself with clothes inside, then one with clean clothes. But as competition in the sector intensified, advertisers had to be more creative to stand out.

December 2023

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The Brief / Alan’s Corner

“FOR INVENTORS OF NEW CONCEPTS AND TECHNOLOGY, A BIG CHALLENGE THEY FACE IS IN COMMERCIALISING THEIR PRODUCT AND THEN TO ACTUALLY GET CUSTOMERS TO BUY IT.”

Your product or service may have several components that for each one on its own, have standalone value. But if you oversell the product by focusing on too many aspects, it could confuse your customer. That would prompt an early end to a conversation.

TIPS ON SELLING DISRUPTIVE CONCEPTS Selling disruptive products can be challenging, but it also presents a unique opportunity to reshape industries and meet emerging needs. Here are ten tips to effectively sell disruptive concepts:

06 Create a compelling narrative. Develop a compelling story around your disruptive concept. Craft a narrative that explains why the traditional solutions are outdated and how your product provides a revolutionary solution. Make it relatable and easy to understand.

01 Know your target market. Identify your target audience and understand their pain points, needs and preferences. Tailor your messaging to resonate with their specific challenges and aspirations. 02 Prepare in advance. Think through what benefits your product or service will deliver for the customer. In a recent strategy planning session that I facilitated with a leading Islamic finance company, we spent a lot of time thinking this through. You too should identify real-world examples and success stories. Share case studies that demonstrate how your disruptive product has positively impacted individuals or businesses. Tangible results add credibility to your offering. 03 Develop visual evidence and proof-of-concept. Taking a tip from the washing machine story above, develop if possible a visual representation of the ‘before and after’ relating to your product. Videos and pictures are powerful testaments, in addition to written testimonials from relevant people. That may mean having to give a free trial to an influencer to establish proof of concept. Make sure that their free trial is conditional on you being allowed to use them as a reference. 04 Know your customer. Regardless of who you’re selling to, know your customer. For example, imagine you are selling a Subaru car that has ‘allwheel-drive’ as standard. That would be rich information for a customer who needs an all-weather or rough-terrain vehicle. However, talking too much about that to a customer who just wants a family car might be overkill. Even though it’s standard in the car, it might not merit strong messaging in every case. gulfbusiness.com

05 Avoid too much technical information and jargon. Focus on the wins and the benefits of your product more than the specifications. Of course, people will be interested in the story and your development journey, but don’t overdo the jargon.

07 Educate and build awareness. Disruptive products often require a level of education. Clearly communicate the benefits and unique features of your product. Use various channels such as content marketing, webinars, and social media to build awareness. 08 Leverage technology. Embrace technology to reach a wider audience. Use digital marketing, social media, and other online platforms to create a strong online presence. Make sure your marketing strategies align with the tech-savvy nature of disruptive products. THE LAST WORD Remember that selling disruptive products requires a delicate balance between challenging the status quo and providing tangible value. By focusing on education, transparency, and adaptability, you can effectively market and sell these innovative solutions.

FOCUS ON THE WINS AND THE BENEFITS OF YOUR PRODUCT

MORE THAN THE SPECIFICATIONS. OF COURSE PEOPLE WILL BE INTERESTED IN THE STORY AND YOUR DEVELOPMENT JOURNEY, BUT DON’T OVERDO THE JARGON

December 2023

The Brief / Lightbox

Quite a show: The Fursan al-Emarat (UAE Knights) aerobatics team’s Aermacchi MB-339 trainer aircraft release coloured smoke plumes to reflect the UAE’s flag, as they fly over Al Maktoum International Airport at Dubai World Central, on November 13, during the Dubai Airshow 2023.

PHOTO: GIUSEPPE CACACE/AFP VIA GETTY IMAGES)

December 2023

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BRAND VIEW

Palazzo Versace Dubai introduces ORO Rewards Program

Pic: Supplied

Members to unlock elite benefits and special offers during stays along with exclusive guest privileges

alazzo Versace Dubai, one of the golden city’s most elite experience destinations, announced the launch of its exclusive ORO Rewards Program, designed to elevate the guest experience. As an ORO member, guests immerse themselves in a world of luxurious privileges and exciting offers whenever they indulge in the Palazzo Versace experience. This loyalty programme, split into – Emerald, Ruby, and Diamond tiers, provides members with an array of benefits right from the moment they join. From earning and redeeming rewards during stays to relishing dining experiences at the hotel’s eclectic restaurants and bars, ORO ensures a rewarding journey for its patrons. The programme boasts a tiered structure that rewards frequent visits and stays with elite status tiers. These tiers unlock a range of privileges, including early check-in and late checkout options, complimentary breakfast,

and enticing incentives for dining and spa indulgences. Members can ascend tiers by accumulating points, and unlock even more exclusive benefits. “Our valued members enjoy exclusive offers on rooms and suites, spa treatments, and dining experiences,” stated a spokesperson for Palazzo Versace Dubai. “They benefit from the best rates on accommodations, access to our opulent ORO Lounge, and complimentary tickets to popular attractions in Dubai.” The ORO Rewards Program, a guest recognition initiative by Palazzo Versace Dubai, extends complimentary WiFi

and members-only offers, including special dining benefits at all hotel restaurants. Members booking directly through the hotel or its official website, palazzoversace.ae, gain access to these exclusive privileges. “Booking through our website brings additional benefits, such as best rates on accommodations, and the convenience of early check-in and late check-out,” added the spokesperson. “Depending on the membership tier, members can enjoy complimentary room upgrades, dining or spa credits, daily breakfast, streaming WiFi, a celebratory treat, or pressing services during their stay.” Additional perks include access to the Palazzo Versace ORO Lounge, which has been designed with the most discerning guests in mind. It provides a quiet place for business and leisure guests for those holding a Ruby or a Diamond membership. Members staying at Palazzo Versace Dubai can enjoy an unparalleled level of bespoke services of the ORO Lounge which includes breakfast, an aperitivo lunch, and dinner a-la-carte menu with antipasti live bar, bar section, and weekend evening live entertainment. Palazzo Versace Dubai invites guests to embark on a refined journey filled with indulgence and exclusivity through the ORO Rewards Program. For more information and to join this elite membership, visit palazzoversace. ae and experience luxurious hospitality at its best.

Depending on the membership tier, members can enjoy complimentary room upgrades, dining or spa credits, daily breakfast, streaming WiFi, a celebratory treat, or pressing services during their stay.”

December 2023

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C OV E R STORY DA M AC GROUP

BALANCING ACT AMIRA SAJWANI, DAMAC PROPERTIES’ MD FOR SALES AND DEVELOPMENT, SHARES HOW SHE’S SHAPING THE FUTURE COURSE OF THE REAL ESTATE GIANT, WHILE DEDICATING TIME TO PURSUE HER DREAM PROJECTS

WORDS NEESHA SALIAN

gulfbusiness.com

December 2023

Pic: Supplied

Aurora on Amali Island

t’s difficult to glance across Dubai’s stunning skyline and miss a DAMAC sign emblazoned across some of the city’s most stunning skyscrapers – it’s a legacy that can be overwhelming, particularly if you are the generation that’s taken on the mantle to realise the real estate giant’s global ambitions. For someone so young, Amira Sajwani is handling the responsibility with grace and confidence, armed with the business acumen that she has inherited from her father, DAMAC Group founder and chairman Hussain Sajwani. One of four siblings, Sajwani has been entrusted with the strategic oversight and direction of DAMAC projects’ sales and development aspects. Along with her brother Ali, who is the managing director of Operations and Technology at DAMAC, Sajwani is closely involved with the transformation of the company, as the business diversifies further into luxury real estate, hospitality, retail and data centres, among other areas. Sajwani’s quiet confidence and steely determination are apparent, with her father and siblings considering her a key driver of the company’s ambitious projects and plans. “My responsibility is to lead teams committed to the successful execution of our ventures, with a keen focus on innovation, staying abreast of market trends, and ensuring customer satisfaction. My role extends beyond just supervision; it involves cultivating a culture of progressive innovation within our teams towards creating an atmosphere that encourages creative thinking and the adoption of advanced solutions. “By keeping track of market dynamics and consumer preferences, I guide our projects to ensure outstanding outcomes and continually strive to elevate the level of service we offer to our exclusive customers,” says the managing director of Sales and Development, at DAMAC Properties. Sajwani attributes her ability to navigate the constantly changing tides of business to her father, and her brothers. “We 32

December 2023

“EFFICIENT TIME MANAGEMENT, EFFECTIVE DELEGATION OF TASKS, AND CULTIVATING A SUPPORTIVE NETWORK OF PEOPLE AROUND ME HAD BEEN THE KEY TO MANAGING MY LIFE.”

are fortunate and honoured to advance the remarkable legacy of our father, the visionary founder of DAMAC. This legacy of entrepreneurship and business acumen is deep-rooted in our family, tracing back to our grandparents. Inspired by his unwavering commitment to excellence, we are continuously broadening our portfolio, exploring new markets, and fostering innovation. My brothers and I are firmly focused on transforming DAMAC into a renowned global conglomerate. “At the heart of our endeavours is a steadfast adherence to core values such as quality, integrity, and a focus on customer satisfaction. Our family’s deep-seated passion for business and an unyielding drive for growth create a dynamic environment of mutual learning. “I am privileged to be part of a team where every member is a leader and a learner. Each of us contributes a unique perspective to our venture, enriching our collective approach.” An early introduction to the family business means that Sajwani can hold her own as she represents the brand regionally and globally, sharing the stage with some of the world’s most seasoned business leaders. She recently was a panelist at Abu Dhabi Finance Week, where she spoke about family businesses at the International Family Office Congress. These opportunities showcase her role as a female trailblazer and a role model for other Emirati women. gulfbusiness.com

C OV E R STORY DA M AC GROUP

AS A YOUNG EMIRATI LEADER, I AIM TO INSPIRE AND EMPOWER YOUNG WOMEN, SHOWING THEM THAT NOTHING SHOULD EVER HINDER THEIR AMBITIONS. I AM COMMITTED TO SETTING A PRECEDENT FOR FUTURE FEMALE LEADERS BY LEADING WITH PASSION, DEDICATION, AND A RELENTLESS PURSUIT OF EXCELLENCE, ALL OF WHICH ARE ATTRIBUTES I’VE HONED UNDER MY FATHER’S TUTELAGE.”

“My father’s guidance and leadership have been instrumental in moulding my approach as an emerging leader. His influence extends beyond our family; he has left a significant mark on the entire region. From him, I’ve learned the value of perseverance, adaptability, and maintaining a customer-focused approach,” she emphasises.

WORK-LIFE BALANCE

ROLE MODEL FOR PEERS “As a young Emirati leader, I aim to inspire and empower young women, showing them that nothing should ever hinder their ambitions. I am committed to setting a precedent for future female leaders by leading with passion, dedication, and a relentless pursuit of excellence, all of which are attributes I’ve honed under my father’s tutelage,” Sajwani adds. She also believes that as a young Emirati female leader she has the responsibility of laying the foundation for others to follow in her footsteps. “I regard myself as a pioneer, championing gender equality and empowerment and expanding opportunities for women across diverse sectors. By engaging in mentorship programmes, fostering educational initiatives, and leading by example, I strive to motivate and encourage young women to fearlessly chase their dreams. “My objective is to cultivate a nurturing environment where they can flourish, dismantle barriers, and assertively step into leadership positions, contributing to a future where gender is no longer a barrier to potential or opportunities.” Sajwani’s thoughts are mirrored in the trends that show that the UAE is seeing a transformation in the composition of company boards with an increase in younger members and more gender diversity, according to a recent Board Monitor report by Heidrick & Struggles, a leading global leadership search and consultancy. According to a report, in 2022, women directors accounted for 23 per cent of appointments in 2022, up from 17 per cent in Heidrick & Struggles’ 2021 study. Additionally, there was a higher number of female first-time board members – 43 per cent of women appointed had previous public board experience, compared to 67 per cent of the men. gulfbusiness.com

AMIRA SAJWANI ADEPTLY JUGGLES HER TIME BETWEEN HER ROLE AT DAMAC AND TWO DREAM PROJECTS: AMALI PROPERTIES AND PRYPCO

Like many career women who are also mothers, Sajwani has also had to learn how to balance her life and time between the office and home. She says that striking the worklife balance has been challenging. “Efficient time management, effective delegation of tasks, and cultivating a supportive network of people around me had been the key to managing my life.” Her “robust” support system includes her family and team members who she says remind her why she loves her job. “On work days, I find my job immensely rewarding, and I feel the same fulfillment at home. Achieving this balance allows me to cherish every moment in both spheres of my life, aligning perfectly with my aspirations,” says the mother of two. Both her children are also under the age of three. Finding the balance is also a key consideration for Sajwani, who is involved in two other businesses. She adeptly juggles her time between her role at DAMAC and two dream projects: AMALI Properties and PRYPCO, both of which are closely linked to real estate. Both Sajwani and her brother Ali are involved in AMALI Properties, a project that aims to redefine luxury living. “This is a really special project for us. Teaming up with my brother on the project has been a journey filled with strategic synergy and mutual enrichment. Our partnership is underpinned by a profound mutual respect and a united vision to redefine the essence of luxury living. In our approach to decision-making, we place a high value on December 2023

C OV E R STORY DA M AC GROUP

Pic: Supplied

open, strategic communication, leveraging our distinct strengths and perspectives to drive our business forward. “Positioned as a pioneer in the ultra-luxury realm of real estate, as well as his proven track record in hospitality, Ali stands out as a trailblazing leader. His profound expertise in resort development is exemplified by the illustrious Mandarin Oriental Bolidhuffaru Reef Resort, a remarkable project by DAMAC that will redefine the standards of luxury hospitality, in the captivating landscapes of the Maldives. As an avid traveller, Ali possesses an intimate understanding of the market needs synonymous with luxurious living, making him a strategic visionary in the industry. “Our collaboration forms a harmonious alliance, where the synergy between our joint comprehension of market trends and customer needs, in addition to Ali’s expertise in resort development, creates the perfect blend for forging a dream team and making our vision for AMALI come true.” Sajwani says AMALI draws inspiration from DAMAC’s achievements in premium property development. “While we recognise DAMAC’s prowess in creating high-end properties, AMALI is dedicated to transcending these benchmarks by weaving unparalleled personalisation and ultra-luxury into our projects. Our ethos revolves around creating bespoke experiences that deeply resonate with our clientele’s unique preferences and lifestyles, differentiating our offerings from the broader market. “Our approach at AMALI surpasses conventional luxury. We bring together a collective of globally acclaimed designers, architects, and visionaries, each contributing to the creation of living spaces that are not just opulent but groundbreaking. The architectural designs of our properties showcase a blend of innovation and elegance, while interior

IN RESHAPING DAMAC’S FUTURE COURSE, MY VISION ALIGNS CLOSELY WITH THE BROADER AMBITION OF ENRICHING THE REAL ESTATE ECOSYSTEM. THIS VISION REQUIRES A COMPREHENSIVE APPROACH, WHERE WE CONSISTENTLY INCORPORATE BEST PRACTICES AND INNOVATIVE SOLUTIONS ACROSS OUR VARIED DOMAINS, INCLUDING HOSPITALITY, RETAIL, TECHNOLOGY, AND PROPERTY.” 34

December 2023

Aurora on Amali Island

spaces reflect meticulous attention to detail and a commitment to luxury in its most refined form. These elements are thoughtfully integrated to ensure that each AMALI residence is a sanctuary of sophistication and tranquillity, tailored to its residents’ individual needs and aspirations,” Sajwani explains. AMALI’s bespoke super-premium villas and exclusive beach lifestyle experiences will launch soon, informs an excited Sajwani. “We are on the brink of transforming the luxury living landscape with the imminent unveiling of our bespoke superpremium villas and exclusive beach lifestyle experiences. This visionary project, tailored for an elite clientele, is nearing fruition, with the first of these exquisite villas set to be unveiled shortly.” In addition to crafting uber-luxe spaces, technology is also a key focus for Sajwani, who says that the UAE is seeing a significant transformation driven by technology integration in property development and construction. Her proptech startup, PRYPCO aims to digitise the real estate industry under one umbrella, offering technologydriven, sustainable, and customer-oriented real estate solutions. It’s a comprehensive ecosystem, connecting buyers, investors, homeowners, and agents in a unified space. “We saw an opportunity to weave technology seamlessly into real estate services, elevating customer experiences and enhancing operational efficiency. At PRYPCO, we envision a future where digital integration takes centre stage, utilising technologies like AI, IoT, and blockchain to streamline operations, boost efficiency, and enhance the real estate transaction experience. “Furthermore, the increasing focus on sustainability is set to redefine the gulfbusiness.com

LEADERSHIP LESSONS AMIRA SAJWANI

Pic: Supplied

As a young entrepreneur in a competitive arena, I’ve learned that success hinges on a combination of resilience, strategic flexibility, and an unwavering commitment to continual learning. By confronting challenges directly, I’ve come to see them as crucial opportunities for growth and development.

DAMAC Volta

industry. The company is leading this transition, concentrating on environmentally friendly projects and green building initiatives to minimise environmental impact and foster sustainable living practices. “The advancements in smart home technologies, sustainable construction practices, and technological integration are redefining the UAE’s real estate landscape. They are setting new benchmarks in innovation, sustainability, and efficiency, signalling a new era for the sector,” says Sajwani, who is clearly leveraging technology across all three businesses. The company has achieved notable milestones, facilitating over Dh2bn in mortgages, serving over 1,000 buyers, and securing over 500 pre-approvals. “Our range of services extends across mortgages, equity releases, buyouts and fractional ownership, among other innovative offerings,” she says.

CHARTING A FUTURE COURSE FOR DAMAC Sajwani is equally focused on achieving a bigger global footprint for DAMAC Properties as much as she is on driving the success of AMALI and PRYPCO. “In reshaping DAMAC’s future course, my vision aligns closely with the broader ambition of enriching the real estate ecosystem. This vision requires a comprehensive approach, where we consistently incorporate best practices and innovative solutions across our varied domains, including hospitality, retail, technology, and property. In doing so, we’re broadening DAMAC’s reach and actively redefining and influencing the real estate landscape. gulfbusiness.com

The ability to make agile decisions, supported by a skilled and diverse team, has been key to navigating the industry’s complexities. One of the most profound lessons for me has been the importance of persistence and keeping a forward-thinking outlook, particularly when faced with stiff competition. Overcoming obstacles, which once appeared insurmountable, has been a key learning experience and ignited my drive for innovation and the pursuit of excellence in real estate.

PRYPCO HAS ACHIEVED NOTABLE MILESTONES, FACILITATING

OVER DH2BN

IN MORTGAGES, SERVING OVER 1,000 BUYERS, AND SECURING OVER 500 PREAPPROVALS

“Our commitment extends to elevating every aspect of the customer experience and championing sustainable practices, establishing DAMAC as a distinguished developer on the international stage. This strategic direction is a testament to our dedication to leadership and innovative thinking, highlighting our role as a key driver in the evolution of integrated lifestyle and real estate development,” concludes Sajwani. December 2023

REAL ESTATE INVESTMENT TRUSTS IN THE UAE ARE A CRUCIAL COMPONENT OF THE REAL ESTATE INVESTMENT LANDSCAPE AND PROVIDE OPPORTUNITIES FOR BOTH LOCAL AND INTERNATIONAL INVESTORS BY KUDAKWASHE MUZORIWA

he year 2023 was marked by uncertainty from geopolitical tensions, recession concerns, high inflation and subsequent interest rates, and financial market volatility. Conversely, the gloomy global picture is somewhat offset by stronger performance in the UAE, with economic growth projected to be 3.4 per cent in 2023 and 4 per cent in 2024, according to the International Monetary Fund. Growth is supported by the non-oil sector as the UAE government is accelerating plans to diversify the economy and sources of income and boost foreign direct investment. Real estate projects 36

December 2023

Pic: Getty Images

UNLOCKING THE POTENTIAL OF REITS and associated sectors such as hotels and industrial, logistics and manufacturing are playing a central role in this diversification drive. “The country’s commitment to economic diversification away from oil-dependence is driving the growth of the real estate sector and may lead to new opportunities for REITs or real estate investment trusts,” says Adela Mues, partner, global corporate group at Reed Smith. Earlier in 2023, real estate advisory firm CBRE projected a positive outlook for the UAE’s real estate sector, on the back of elevated oil prices and resolute economic growth, which supported strong levels of occupancy and investment activity. The total number of transactions in Abu Dhabi rose by 94.1 per cent year-on-year (YoY) in H1 2023, underpinned by a 160.4 per cent increase in off-plan transactions while Dubai smashed records to post a 43.3 per cent YoY jump in transactions volumes, CBRE said in its UAE Real Estate Market Outlook Mid-Year Review in March. Dubai and Abu Dhabi have witnessed an influx of wealthy global investors, who are drawn by a flurry of reforms that are being implemented to make the UAE appealing to global companies, investors and talent. Rating agency S&P Global projected that Dubai property developers will deliver 40,000 homes in 2023, with similar numbers in the next year and 2025. That’s high when compared with historic levels at between 15,000 to 30,000 homes. “The UAE’s real estate sector benefits from strong government support and strategic initiatives aimed at diversification and development. This can create favourable conditions for REITs, particularly in certain gulfbusiness.com

FEATURES / REAL ESTATE

growing sectors such as commercial, residential, and retail spaces,” remarks Mues. The UAE’s real estate market conditions will likely remain healthy in the next 12-18 months. However, industry experts projected that demand will be slower than in the past two years due to high global inflation and higher for longer interest rates. Real estate investors looking to leverage the UAE’s booming real estate market without committing to a large outlay are tapping into REITs to earn high yields. “The country’s real estate market has its own dynamics, influenced by local demand, supply, and regulatory environment,” Mues observes while noting that REITs in the UAE are structured to adapt to these regional features. Over the years, UAE REITs have demonstrated resilience amid a faltering global economy, and investor behaviour has also evolved, with a greater emphasis on sustainable and socially responsible real estate projects. CATALYST FOR PORTFOLIO GROWTH The UAE’s real estate and construction sector has registered remarkable growth over the years, and REITs are playing a significant role in fueling the boom as they have increasingly become a popular investment option, given the ease they provide in managing properties without physically owning or buying them. “REITs represent a distinct blend of investment attributes, amalgamating aspects from real estate, equity, and fixedincome markets,” says Arun Leslie John, chief market analyst at Century Financial. “They grant exposure to real estate markets, potential property value appreciation, and consistent rental income, resembling equity investments with liquidity and dividend prospects, while also demonstrating income stability akin to fixed-income securities.” REITs, which are a subset of property funds, have been a rapidly growing asset class worldwide and signs of this growth started to emerge in the UAE after the implementation of the legal and regulatory frameworks for their operations and establishment in 2016. From a slow beginning, REIT activity in the Emirates has grown significantly, driven by strong structural reforms and ambitious economic growth strategies that are aimed at boosting competitiveness and attracting foreign direct investment. gulfbusiness.com

The country’s commitment to economic diversification away from dependency on oil revenues is driving the growth of the real estate sector and may lead to new opportunities for REITs The UAE’s status as a global tourism and business hub has attracted local and international investors to its real estate market. The growing demand in Dubai and Abu Dhabi’s luxury property market, a thriving tourism industry, and the continued expansion of the logistics industry are all contributing to the growth of the REIT sector. Dubai Investment said in October that the increasing growth of REITs in the UAE has left a lasting impact on the country’s real estate industry as investors seek to diversify their investment portfolios to spread risk. REITs also serve as a source of capital for property developers in the UAE. They help traditional commercial and residential real estate investors benefit from the growth in specialist areas such as education, healthcare and industrial sectors. By investing in UAE REITs, investors gain exposure to different geographical markets where cities such as

REITS, WHICH ARE A SUBSET OF PROPERTY FUNDS, HAVE BEEN A RAPIDLY GROWING ASSET CLASS WORLDWIDE AND SIGNS OF THIS GROWTH STARTED TO EMERGE IN THE UAE AFTER THE IMPLEMENTATION OF THE LEGAL AND REGULATORY FRAMEWORKS FOR THEIR OPERATIONS AND ESTABLISHMENT IN 2016

Abu Dhabi, Dubai and Ras Al Khaimah are experiencing significant real estate development and growth. REITs in the country will continue to evolve in changing market conditions, but they are here to stay – offering portfolio diversification, inflation protection, and exposure to the real estate market without having to physically manage properties. GCC REIT MARKET The GCC REIT market has grown exponentially since 2014 when Equitativa Group’s Emirates REIT was listed on the Nasdaq Dubai. Emirates REIT, one of UAE’s Shari’ah-compliant REITs, reported a net profit of $93m (Dhs340m) in the nine months to September 30. Its net property income jumped by 11 per cent year-on-year to $45m (Dhs167m), driven by the combined effect of increased occupancy and continued improved

THE UAE’S REAL ESTATE MARKET CONDITIONS WILL LIKELY REMAIN HEALTHY IN THE NEXT 12-18 MONTHS

December 2023

FEATURES / REAL ESTATE

The weakening global labour market, declining inflation, and slowing consumer spending all support the anticipated Fed rate cuts in the US, and are expected to support REIT prices Stock Exchange in February of the same year to become the first diversified multiasset REIT in the sultanate. Al Mal Capital REIT’s total assets reached Dhs632.7m in the six months to June 30 from Dhs355.3m as of December 31, 2022, while its investment properties stood at Dhs578m. The Gulf region has fully embraced the concept of REITs, with more than 18 of them listed across the region, including in Abu Dhabi, Dubai, Saudi Arabia, Bahrain, and Oman. REIT investment

Pic: Getty Images

rental rates. Following Emirates REIT’s listing, there have been limited new REIT formations. However, the implementation of REIT regulations in Saudi Arabia in 2016 has dramatically altered the GCC landscape with six REITs being listed in the kingdom since inception while a further listings were reported in both Bahrain and the UAE. Dubai Financial Market welcomed its first REIT listing in January 2021 after Al Mal Capital REIT raised $95.3m while OMAN REIT listed on the Muscat

strategies in the kingdom are split between the mixed-asset approach and the specificasset class approach while in the UAE, both existing listed funds have their investments spread across a mixed portfolio of real estate holdings. John notes that the future outlook for REITs is mixed. The weakening global labour market, declining inflation, and slowing consumer spending all support the anticipated Fed rate cuts in the US, and are expected to support the REIT prices. However, he warns that uncertainty lingers around the tightening of liquidity and credit in the US, which might again keep a check on the prices of REITs. For the time being, though the blended approach provides important benefits for the long term with regards to performance given the diversification of risk, industry experts expect a trend towards the specialisation of REITs in the GCC with a focus on asset classes that are dominant to the region including office, retail, education, healthcare and logistics.

December 2023

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BRAND VIEW

Tilal Al Ghaf

Prime property The UAE luxury property market shows a strong outlook for 2024

t’s been an interesting year for the UAE’s luxury property market. At the beginning of 2023, forecasts from Oxford Economics expected the UAE’s economy to grow by 3.5 per cent. The latest forecast, however, puts this number at 2.5 per cent. Underscoring this growth is the dynamic performance of the real estate markets in Dubai and Abu Dhabi. Dubai’s population surpassed the 3.5 million mark in April this year, powered by a sharp rise in migration. With supply struggling to meet demand, prime real estate has emerged as a particularly attractive investment opportunity, and one that looks set to go from strength to strength in the year ahead. DUBAI’S PROPERTY MARKET REMAINS BUOYANT The Dubai Land Department’s 2023 Residential Sales Price Index revealed a

43 per cent year-on-year increase in terms of sales volume, and 65 per cent in terms of sales value. According to Fouad Bekkar, VP of Data & AI at Property Finder Group, off-plan transactions supported the performance of sales transactions to create the highest-ever record for February in Dubai’s market – with 9,020 registered transactions worth Dhs26.70bn. THE UPWARD TRAJECTORY DOESN’T LOOK SET TO SLOW Looking ahead to 2024, a recent study by artificial intelligence giant Realiste found that the real estate market in Dubai is expected to remain buoyant – growing by an anticipated 15 per cent. On the flip side, with soaring fuel and energy prices, rising inflation, and tax increases, London’s real estate market is likely to continue its decline in sharp

contrast. Despite off-plan sales performing well, a desire for instant access to the Dubai lifestyle is perhaps the reason behind 53 per cent of global HNWIs (high-net-worth individuals) specifying their preference for a completed home in Dubai – a figure that rises to 61 per cent of those with a personal net worth of over $10m, and 71 per cent for East Asian HNWIs. But whether off-plan or ready sales, it’s clear that Dubai’s luxury property market is continuing its steady rise. DUBAI SEALS STATUS AS KEY GLOBAL LUXURY HOMES MARKET Knight Frank’s 2024 Residential Forecast Edition showed that in Q3 2023 residential values rose by 5 per cent across Dubai, marking the 11th consecutive quarter for price rises. Apartment prices rose by 5.1 per cent to over Dhs1,300 per square foot (psf) during Q3, while between June and September, villa prices increased by 4.5 per cent to reach an average Dhs1,580 psf. This growth, according to the report, is being fuelled by continued demand for luxury second homes from the international elite. Knight Frank’s 2023 Destination Dubai report found that 66

per cent of HNWIs are keen to snap up a second home in Dubai – which was named the sixth-best city in the world. And despite being synonymous with a level of luxury that is undeniably fit for even the most exclusive of ultra HNWIs, Dubai remains one of the most affordable luxury home markets in the world – sealing its appeal among international buyers. DUBAI OFFERS GREATER VALUE FOR MONEY THAN THE REST OF WORLD Understanding the UAE’s unique appeal to the international elite, and keen to offer investors and inhabitants alike the chance to own a piece of sustainable, architectural excellence, Majid Al Futtaim recently unveiled a new era of ultrapremium lifestyle destinations at its flagship community in Dubai. In collaboration with architectural firm SAOTA and Nabil Gholam, and interior design firm BLINK, Serenity Mansions in Tilal Al Ghaf was created to redefine luxury living, while meeting the city’s rapidly growing demand for prime real estate. The luxury housing market has undergone a shift in the last five years. The concept that ‘more is more’ is in fact, no more. Today, people want a retreat that takes its cues from nature; a sanctuary for their wellbeing. Subtle touches that nod to luxury, rather than grandiose

Further up the price spectrum, Dubai has emerged as the world’s busiest $10m+ homes market during H1, with 176 sales in this exclusive price bracket, ranking ahead of New York (125), Hong Kong (109), and London (99) and further underscoring the city’s emergence as a key global luxury homes market.” Knight Frank’s Dubai Residential Market Review, 2024 Residential Forecast Edition

and ostentatious displays of wealth and status. With a price increase of 12.4 per cent year-on-year across prime properties, the Savills World Cities Prime Residential Index revealed that Dubai outperformed the global average – emerging as the second-highest city after Miami. It’s also far easier to transact luxury property in Dubai than in many other places around the world, with investorfriendly laws and taxation systems, and

Serenity Mansions

the emirate as an undisputed dynamic business hub in the region, foreign real estate investors greatly benefit from the capital and income-tax-free system, along with the absence of additional levies on property purchases. In addition, the introduction of Dubai’s long-term visas for real estate investors is adding to its appeal amongst luxury investors in search of lucrative buying options. LARGE-SCALE RESIDENTIAL DEVELOPMENT BOOM EXPECTED Knight Frank’s Residential Market Review is forecasting a price growth of 3.5 per cent for the mainstream market during 2024, and 5 per cent for the prime residential market. It also points to the expectation for a large-scale boom in residential development, owing to the predicted growth in Dubai’s inhabitants. “The city’s current stock of around 600,000 homes will virtually need to double if the population targets are to be met, which the government expects to further swell to 7.8 million by 2024. For the city’s prime markets, the challenge is even more acute, with just 368 homes currently under construction,” the report stated. Despite the expectation for Dubai to remain one of the fastest-growing prime residential markets in the world during 2024, this forecast is not without risk. However, for now, key economic indicators remain positive.

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CELEBRATING THE BEST IN THE BUSINESS

& 2023

AND THE AWARD GOES TO...

Ian Fairservice, managing director and group editor-in-chief of Motivate Media Group

Outdoors at the Palazzo Versace Dubai

THE 11TH EDITION OF THE GULF BUSINESS AWARDS WAS HELD ON NOVEMBER 28, AT THE PALAZZO VERSACE DUBAI. HERE ARE THE HIGHLIGHTS OF THE GALA EVENT

he 11th edition of the Gulf Business Awards unfolded as a celebration of excellence, bringing together industry leaders, luminaries and trailblazers on November 28. The awards gala, which was held at Palazzo Versace Dubai, recognised companies and captains of industries across different sectors, including energy and technology, tourism and hospitality, logistics and transport, real estate and construction, banking and finance, healthcare and retail. More than 250 business leaders and C-suite executives attended the awards ceremony, where distinguished individuals and companies were lauded for their positive impact on the region’s business ecosystem. Ian Fairservice, managing director and group editor-inchief of Motivate Media Group, congratulated the regional business community and industry leaders on their success, commending the role they play in driving growth in the region.

He also highlighted how the publication had witnessed the region’s transformation over two decades. “We have cheered every milestone as the region morphed from a vast desert expanse into a powerhouse of economic growth and innovation,” he said during his address. Award winners were chosen by a judging panel of respected industry luminaries, including Fairservice, Anthony Milne, chief commercial officer – Motivate Media Group, Helen Barrett, deputy chair – British Business Group Dubai and Northern Emirates, and partner – CBD Corporate Services, and Robin Joffe, partner and managing director, Frost & Sullivan Middle East, Africa, and South Asia (MEASA) operations. The public vote was also reinstated this year. The coveted Gulf Business Lifetime Achievement Award was conferred on Emirati billionaire Hussain Sajwani, the founder and chairman of Dubai-based DAMAC Group. Under his leadership, the conglomerate has built a diverse portfolio across

WHAT OUR WINNERS SAID Lifetime Achievement Awardee Sajwani said: “I would like to extend my thanks to the Gulf Business team. I dedicate this award to my family, team and partners whose commitment and hard work have been instrumental to our success.” Sir Clark, who won the Transport & Logistics Business Leader of the Year and Business Leader of the Year, said he was honoured to receive the two awards and thanked Gulf Business. Acknowledging the Emirates team, he said, “Being awarded this accolade is a true team effort of Emirates’ management, and

the many thousands of people that have come through our organisation over the last 38 years who have built it into the airline it is today, in an amazing country and city, the UAE and Dubai. Emirates is a brand that has harnessed itself to Dubai, and with the drive and visionary leadership of this country, we hope that the brand continues to propel itself and Dubai even further.” Emirates also received the award for Transport & Logistics Business Company of the Year. Sheikh Majid Al Mualla, DSVP International Affairs at Emirates received the award on behalf of Emirates. Accor won the Hospitality Company of the Year and overall Company of the Year awards. Philip Jones, Accor Group’s senior vice president - Operations, Middle East & Africa, collected the awards on behalf of the group. He said: “It was a great honour to win Hospitality Company of the Year and now to win the Company of the Year Award is a huge honour. I feel very happy and very proud on behalf of all 30,000 ladies and gentlemen across the region because this is their award.”

Sir Tim Clark, president of Emirates

Philip Jones, senior vice president - Operations, Middle East & Africa, Accor Group

for their standout performance in the hospitality sector. Congratulations to DAMAC Group’s founder and chairman Hussain Sajwani, who was bestowed the prestigious Gulf Business Lifetime Achievement award. He joins a growing list of distinguished leaders who received the award in the past. “Once again, congratulations to all the winners. We look forward to continuing to showcase your stories and celebrate the ongoing success of our vibrant business community.”

LIFETIME ACHIEVEMENT AWARD Hussain Sajwani, chairman and founder, DAMAC Group

different sectors including property, technology, retail and fashion, hospitality, and logistics. The group’s subsidiaries, DAMAC Properties and DAMAC International, are also redefining the Middle East’s luxury property market, delivering iconic residential, commercial and leisure properties across the region and beyond. Furthermore, this year’s Business Excellence Awards recognised institutions and individuals who made a mark last year and impacted the region’s business landscape in a meaningful way. Fairservice said, “I am thrilled to extend my congratulations to the exceptional individuals and organisations who were nominated and won accolades at the 11th edition of the Gulf Business Awards. This year’s competition was fierce, with many impressive contenders vying for the prestigious titles. “Our nominees and winners have not only navigated global uncertainties but redefined the limits of what is possible with their innovation and future-forward vision. Congratulations to Sir Tim Clark, president of Emirates, who took home two awards, including Business Leader of the Year, with the airline winning a third laurel. Well done Accor Group, who received two key awards, including overall Company of the Year,

PARTNERS SUPPORTING THE EVENT The award ceremony was hosted by Gulf Business and Motivate Media Group and sponsored by Century Financial, associate sponsor – Yardi and activation sponsor – Warehouse Gym. Event partners included Super Angels Summit 2023, vote processing partner – Jacob-sons, Palazzo Versace Dubai for venue and Palazzo Versace Hospitality for F&B, African and Eastern, and Matrix Public Relations for PR.

BUSINESS EXCELLENCE AWARDS

Company of the Year: Accor

Marcom Leader of the Year: Lucy Aziz, OPPO

Business Leader of the Year: Sir Tim Clark

Sustainability Company of the Year: Masdar

Disruptive Company of the Year: Kitopi

SME of the Year: Tarabut Gateway

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Investment Company of the Year: AIX Investment Group

Banking Company of the Year: Abu Dhabi Commercial Bank

Online Trading Company of the Year: EFG Hermes ONE

Finance Advisory Company of the Year: EFG Hermes

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Banking, Finance & Investment Business Leader of the Year: Shayne Nelson, group CEO, Emirates NBD

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REAL ESTATE & CONSTRUCTION

Lifestyle Project of the Year: Kyoto by Oro24

Real Estate Agency: Driven Properties

Innovative Project of the Year: Keturah Reserve by MAG Properties

Developer of the Year: Aldar Properties

Project of the Year: Atlantis the Royal, Dubai by Kerzer International

Proptech Company of the Year: Property Finder

Real Estate and Construction Business Leader of the Year: Atif Rahman, founder and chairman, ORO24 Developments

TOURISM & HOSPITALITY

Tourism Company of the Year: Saudi Tourism Authority

TRANSPORT & LOGISTICS

Tourism Business Leader of the Year: Raki Phillips, CEO of Ras Al Khaimah Tourism Development Authority

Transport and Logistics Company of the Year: Emirates

Hospitality Business Leader of the Year: Satya Anand, president of Marriott EMEA

Transport and Logistics Business Leader of the Year: Sir Tim Clark, president of Emirates

Hospitality Company of the Year: Accor Group

RETAIL

Retail Company of the Year: Dubai Duty Free

Retail Business of Leader of the Year: Ahmed Galal Ismail, CEO of Majid Al Futtaim Holding

HEALTHCARE

Healthcare Leader of the Year: Alisha Moopen, deputy managing director of Aster DM Healthcare

Healthcare Company of the Year: Al Khayyat Investments

TECHNOLOGY & ENERGY

Technology Business Leader of the Year: Prateek Suri, founder and CEO of Maser

Technology Company of the Year: Microsoft

Cloud Company of the Year: Huawei

Energy Company of the Year: Aramco

Energy Business Leader of the Year: Dr Sultan Ahmed Al Jaber, MD, director and group CEO of ADNOC, and chairman of Masdar

GOLDEN FRAME AWARDS

he Gulf Business Awards continued its collaboration with Century Financial, to present the second edition of the Golden Frame Awards in 2023. The awards recognised trailblazers and leaders across the SME sector, awarding winners for innovation, business strategy, product delivery, sustainability and customer service, among other factors. This year, the Golden Frame Awards presented a special accolade for the retail industry, awarding GMG as the retail company of the year from a shortlist featuring the region’s top retail leaders.

Disruptive SME of the Year: Polynome Events FZE

Retail Company of the Year: GMG

Innovative SME of the Year: Petrafos Energy FZC and Downtown Reality Real Estate Brokerage LLC

Social Innovation Excellence Award: Butterfly Social Technologies Ltd

Agribusiness Leader of the Year: Export Trading Group

Sustainable SME of the Year: Healthy Pop Foods Co LLC

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2023

HONOURING THE UAE’S MOST DISRUPTIVE BUSINESSES THE GB TECH WEB3 AWARDS 2023, HELD ON OCTOBER 30, CELEBRATED INNOVATION AND ADVANCEMENT IN THE COUNTRY’S BURGEONING WEB3, CRYPTO, METAVERSE AND BLOCKCHAIN ECOSYSTEM

he GB Tech Web3 Awards, which saw more than 120 industry leaders and key decision makers gather, was a testament to the rapid evolution of Web3 technologies within the region. It brought together brands and entrepreneurs, operating and innovating across both the physical and virtual worlds. The UAE is home to over 1,800 organisations and more than 8,650 professionals actively engaged in the crypto, metaverse and blockchain sectors as of 2023. The businesses are working across critical segments

such as governments, associations, startups, investors, service providers, corporations, education, and research. The awards recognised work done by innovators and entrepreneurs in creating opportunities, and products which are being recognised globally. The awards were hosted by Motivate Media Group and GB Tech (a Gulf Business brand), held in association with Arte by Crypto Oasis. The winners were selected through a combined jury and a public voting process – a first for the event as well as the sector in the UAE.

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RECOGNISING THE WEB3 ECOSYSTEM The Web3 thrives on community collaboration and open-source development. It encourages collaboration among developers, users, and stakeholders, fostering a culture of innovation and collective problem-solving. The Web3 ecosystem is crucial because it presents a paradigm shift in how we perceive and interact with the internet and digital assets. It not only revolutionises technology but also redefines ownership, privacy, and user control in the digital realm. The Web3 ecosystem and its impact is being felt across a variety of sectors. With its decentralised nature and

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blockchain backbone, Web3 extends beyond financial applications. It has the potential to revolutionise various sectors, including healthcare, real estate, gaming, art, supply chain, and identity verification, among others. Web3 focuses on decentralisation, aiming to shift away from centralised control while this decentralised structure enhances transparency, security, and data privacy, empowering users with more control over their digital assets and information. It fosters an environment conducive to innovation, which is visible across the UAE and supported through various initiatives. It encourages

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developers, entrepreneurs, and businesses to disrupt traditional industries, providing more efficient and inclusive solutions. The GB Tech Web3 Awards 2023 and the Crypto Oasis network underscore the UAE’s position as a global frontrunner in embracing Web3, crypto, and blockchain technologies. The event showcased the nation’s commitment to fostering innovation and nurturing a conducive environment for the flourishing Web3 ecosystem. With continued support and collaboration from industry leaders and policymakers, the UAE’s Web3 journey is set to redefine the future of technological innovation in the region.

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Blockchain Frontier Award: Chainalysis

Blockchain Leadership Award: Mehdi Cherif, Pulse

Editor’s Choice Blockchain Startup of the Year: Agile Dynamic Tech

Crypto Influencer Award: Nagham Hassan (Bitcoinofficial)

Crypto Wallet of the Year: MetaMask

Defi Project of the year: YieldApp

Gamefi Project of the Year: EX-Sports

Blockchain Startup of the Year: InvoiceMate

Centralised Crypto Exchange of the year: Bybit

Decentralised Crypto Exchange of the year: Uniswap

Innovative Project of the Year: Spheroid Universe

2023

Metaverse Project of the Year: Everdome

Blockchain Young Achiever Award: Amine Nedjai, ABO Digital

NFT Project of the Year: Dubai Police

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GULF BUSINESS BUSINESS LEADER OF THE YEAR

LIFETIME ACHIEVEMENT AWARD

Sir Tim Clark

Chairman and founder, DAMAC Group

Hussain Sajwani

President, Emirates

BANKING, FINANCE & INVESTMENT BUSINESS LEADER OF THE YEAR Shayne Nelson Group CEO, Emirates NBD

GULF BUSINESS COMPANY OF THE YEAR ACCOR

CLOUD COMPANY OF THE YEAR Huawei

ONLINE TRADING COMPANY OF THE YEAR EFG Hermes ONE

TECHNOLOGY COMPANY OF THE YEAR Microsoft

REAL ESTATE AND CONSTRUCTION BUSINESS LEADER OF THE YEAR Atif Rahman Chairman and Founder of ORO24 Developments

INVESTMENT COMPANY OF THE YEAR AIX Investment Group

ENERGY COMPANY OF THE YEAR Aramco

BANKING COMPANY OF THE YEAR Abu Dhabi Commercial Bank

SME OF THE YEAR Tarabut Gateway

TOURISM BUSINESS LEADER OF THE YEAR Raki Phillips CEO of Ras Al Khaimah Tourism Development Authority

FINANCE ADVISORY COMPANY OF THE YEAR EFG Hermes

SUSTAINABILITY COMPANY OF THE YEAR Masdar

LIFESTYLE PROJECT OF THE YEAR Kyoto by Oro24

DISRUPTIVE COMPANY OF THE YEAR Kitopi

REAL ESTATE AGENCY OF THE YEAR Driven Properties

YOUNG ACHIEVER OF THE YEAR Abdallah Abu Sheikh Co-founder and CEO of Astra Tech

HOSPITALITY BUSINESS LEADER OF THE YEAR Satya Anand President Marriott EMEA

DEVELOPER OF THE YEAR Aldar Properties

RETAIL BUSINESS LEADER OF THE YEAR Ahmed Galal Ismail CEO of Majid Al Futtaim Holding

REAL ESTATE AND CONSTRUCTION INNOVATIVE PROJECT OF THE YEAR Keturah Reserve by MAG Properties

TRANSPORT & LOGISTICS BUSINESS LEADER OF THE YEAR Sir Tim Clark President of Emirates

PROPTECH COMPANY OF THE YEAR Property Finder

HEALTHCARE BUSINESS LEADER OF THE YEAR Alisha Moopen Deputy Managing Director of Aster DM Healthcare TECHNOLOGY BUSINESS LEADER OF THE YEAR Prateek Suri Founder and CEO of Maser ENERGY BUSINESS LEADER OF THE YEAR Dr Sultan Ahmed Al Jaber MD and Group CEO of ADNOC, and Chairman of Masdar

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REAL ESTATE AND CONSTRUCTION PROJECT OF THE YEAR Atlantis The Royal by Kerzner International

DISRUPTIVE SME OF THE YEAR Polynome Events FZE

TOURISM COMPANY OF THE YEAR Saudi Tourism Authority

SOCIAL INNOVATION EXCELLENCE AWARD Butterfly Social Technologies Ltd

HOSPITALITY COMPANY OF THE YEAR ACCOR

AGRIBUSINESS LEADER OF THE YEAR ETG Inputs Holdco Ltd (EIHL)

RETAIL COMPANY OF THE YEAR Dubai Duty Free

INNOVATIVE SME OF THE YEAR Petrafos Energy FZC

TRANSPORT & LOGISTICS COMPANY OF THE YEAR Emirates

INNOVATIVE SME OF THE YEAR Downtown Reality Real Estate Brokerage LLC

HEALTHCARE COMPANY OF THE YEAR Al Khayyat Investments

SUSTAINABLE SME OF THE YEAR Healthy Pop Foods Co LLC

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Lifestyle

The road to better days From product performance and reliability to customer experience and electrification, here’s how McLaren is gearing up for the future p.60

“Quince is indeed a unique fusion of culinary art and interior design, and it’s a labour of love that stems from our family’s deep-rooted background in design concepts.” Abdalla Al Tamimi, co-founder of homegrown restaurant and cafe, Quince gulfbusiness.com

VACHERON CONSTANTIN TRADITIONNELLE The new Traditionnelle manualwinding watch is adorned with a pink gold and green colour combo, framed by a 38 mm diameter. Its classic look is recognisable by the slender, stepped case middle and the railwaytype minutes track punctuating the dial, swept over by Dauphine-style hands. The contemporary twist comes in the form of a new green dial with a sunburst finish.

December 2023

MCLAREN UPS THE ANTE

WE LEARN HOW THE BRITISH AUTOMAKER IS RAISING THE GAME WHEN IT COMES TO PRODUCT PERFORMANCE, CUSTOMER EXPERIENCE AND HYBRIDS BY SHIVAUM PUNJABI

cLaren is an iconic brand. The British automaker has been participating in Formula 1 for the past 60 years. Its auto division though has been manufacturing road-going cars for only 13 years, which is relatively recent in the grand scheme of things. The company has had great success with the McLaren F1, which is one of the most revered modern cars of all time, and some success with the collaboration with Mercedes-AMG to create the McLaren Mercedes-AMG SLR, but none of these were series production cars. In 2011, McLaren Automotive produced its first road-going production car, the McLaren MP4-12C. This car was an instant

December 2023

hit. However, McLaren Automotive has been plagued with production and reliability issues over the past few years. The company’s CEO, Michael Leiters, who took over the reins in April, wants to change all that and raise the company’s game. The German-born executive, who has worked with Ferrari and Porsche, was recently in Dubai to unveil the brand’s largest standalone showroom in the world. The facility is located next to its largest global service centre, which opened in 2022. The launch of the new facility also coincided with the regional launch of the supercar, 750S. Artura, the brand’s high-performance hybrid was also in the spotlight during the launch.

Michael Leiters, chief executive officer

We caught up with Leiters at the stunning Royal Atlantis Residences to discuss McLaren Automotive’s latest launches and plans. Here are excerpts from the discussion. What prompted the decision to open your largest global showroom and integrated service centre in Dubai?

Dubai is significant for us as a market, and we expect to do more business here in the gulfbusiness.com

Lifestyle / Automotive

“The hybrid uses a twin-turbo 3.0-litre V6 and an electric motor to produce 671hp and 531lb-ft of torque. The motor draws its power from a 7.4-kilowatt-hour lithium-ion battery. In around five years, more than 90 per cent of our fleet will be hybrid cars.” coming years. The emirate is home to many car enthusiasts and McLaren fans, so it was only natural for us to invest in growing our operations here. What makes the showroom stand out when compared to other touch points from across the world?

You have two new flagship products, the Artura and the 750S. What should we expect next from McLaren?

The 750S is an exciting car with a V8 powertrain and pure internal combustion engine (ICE), and there will also be a niche for pure ICE cars in the future. Our focus for the future is hybrid cars. The Artura is our first entry into this technology market, and more are planned. The hybrid uses a twin-turbo 3.0litre V6 and an electric motor to produce

Are you looking at only hybrids or a complete EV product down the line?

We must prepare ourselves for the big transformation, and it involves electric vehicles. Right now, I don’t see a supercar that is feasible with pure electric propulsion. I think this will take until the end of the decade. For example, if you want to create a certain power output in an electric car, the vehicle will get heavy. It’s not a supercar if it weighs 2.2 tonnes with 2,000hp. We don’t want to do this. When we go electric, our cars will weigh 1,500 kilogrammes. Performance-wise, it will be comparable to the 750S or similar models. Right now, we don’t have the technology in place for EV cars to deliver this kind of performance. Does this rule out family-friendly cars such as four-door sedans or SUVs?

No. It doesn’t mean a supercar brand like McLaren can’t enter a new customer segment. Of course, it’s a possibility. However, we believe in doing things the right way. The right product is always in line with the

Pics: Supplied

The dimensions would be the first point: the 10,225-square-foot facility features a vast display gallery and a McLaren Special Operations studio to enable bespoke commissions. It features a different concept. There are lounges and areas where you can socialise with friends or the McLaren

team. The product and the process are integrated seamlessly into a warm, social environment.

671hp and 531lb-ft of torque. The motor draws its power from a 7.4-kilowatt-hour lithium-ion battery. In around five years, more than 90 per cent of our fleet will be hybrid cars.

gulfbusiness.com

December 2023

Lifestyle / Automotive

“We push the boundaries of technology to create these cars, looking at every detail closely. It also involves creating special solutions that then need to be industrialised. This is difficult, not only for us but for every automaker. We have chosen a solution to offer a special experience to our customers, and we are committed to getting it right at all costs.”

have chosen a solution to offer a special experience to our customers, and we are committed to getting it right at all costs. Secondly, we’ve restructured the organisation and sharpened our focus on industrialisation and the execution of our programmes. We have become a metrics-driven organisation. I brought in new people who are leaders in their fields to drive robust processes in our

manufacturing and supply chain. We are pushing for better response times and spare part delivery. We have introduced additional quality insurance and management systems and checks on the production line and with our suppliers. We are also driven by concepts such as the ‘lean approach’ and ‘Kaizen’ manufacturing to improve processes, the product and customer experience.

brand promise and product DNA. For us, this is performance, engagement, thrill, and theatre. For now, we are focused on our core segment, which is supercars. We must define and execute our future there. What are you doing to ensure product reliability and service quality?

It’s important to understand what the product is about. We are a racing team that builds cars. We push the boundaries of technology to create these cars, looking at every detail closely. It also involves creating special solutions that then need to be industrialised. This is difficult, not only for us but for every automaker. We 62

December 2023

gulfbusiness.com

Lifestyle / Dining

Eat your art out

wanted to break the conventional norms of fine dining since anyone can walk in wearing jeans and a t-shirt, and still enjoy an exquisite meal prepared by our top-notch chefs. What I hope diners will take away from their visit to Quince is a personalised and heartfelt experience, a place where they can feel the warmth of genuine hospitality, the creativity in our cuisine, and the passion embedded in every detail.

Pics: Supplied

Collaborating with family can be a rewarding experience. What is it like working alongside your father on this unique project, and how does your combined vision influence your plan to build the brand?

ABDULLA AL TAMIMI, CO-FOUNDER OF HOMEGROWN BRAND QUINCE RESTAURANT & CAFÉ, TELLS US HOW THE NEWLY LAUNCHED RESTAURANT IS AN ODE TO CULINARY ART AND INTERIOR DESIGN BY NEESHA SALIAN

In a region with diverse dining options, what inspired you to create Quince, and what do you hope diners will take away from their visit?

Quince is more than just a restaurant; it’s the realisation of my lifelong passion for both exquisite cuisine and innovative design. I’ve always dreamed of having my restaurant, and it’s this personal connection that guides us to create something truly extraordinary in Umm Suqeim, Dubai. I’m intricately involved in every aspect of the restaurant’s operation, working closely with our chefs to ensure that every dish is not just a culinary masterpiece, but a labour of love. My inspiration for Quince comes from my extensive travels, where I’ve had the privilege of visiting gulfbusiness.com

some of the world’s finest dining establishments. It’s from these experiences that I’ve drawn inspiration, infusing our menu and ambience with details that I found captivating during my explorations. My passion for design, both in spaces and on plates, has profoundly shaped Quince’s identity. I’ve always believed that design isn’t just about aesthetics, but creating an atmosphere that stimulates the senses. Quince is the result of that belief, with every element in our space, from the ‘living room’ area to the open kitchen, telling a unique story. Our original idea behind Quince was to introduce a five-star quality dining experience to Umm Suqeim but have it set in a casual, welcoming setting. We

Collaborating with my father has been an incredibly rewarding experience. We make a great team, and being a father-son duo, we share a unique bond that extends far beyond the walls of our restaurant. What’s truly remarkable about our partnership is the ease with which we agree on important decisions. There are no barriers or conflicts; instead, we approach every challenge with a solution-oriented mindset, always striving to find a way to merge our ideas and perspectives. My father’s role is majorly that of an investor but he was also the mastermind behind the design. With his 30 years of legacy in interior design, he has an innate ability to transform spaces into visually stunning, inviting environments that perfectly complement the culinary experience at Quince. On the other hand, my passion for food and my appreciation for true culinary artistry drive my role as the culinary aficionado. I am a dedicated foodie at heart, so I can’t help but be involved in continually crafting the unique culinary identity of Quince. Quince is a remarkable fusion of culinary art and interior design. Could you shed some light on how the concept of marrying interior design with F&B came to life, and what benefits you believe it brings to the overall experience?

Quince is indeed a unique fusion of culinary art and interior design, and it has been a labour of love that stems from our family’s deep-rooted background in design concepts. It is space and function that are paramount in elevating the overall dining experience. Our approach to December 2023

Lifestyle / Dining

combining excellence in both culinary art and interior design has developed an F&B brand that offers a personalised, homely touch that resonates with our customers who predominantly know us through our premium furniture & interior design solutions, DecoArt and D&D Home. The ambiance at Quince exudes an inviting warmth that makes our guests feel as if they’re dining in their own luxury homes, surrounded by top-notch chefs, and enjoying a cuisine customised just for them. It’s about creating a sense of familiarity and comfort while still delivering the utmost in luxury. Having our D&D Home showroom within our restaurant perfectly encapsulates this idea. It allows our customers to not only savour the flavours of our cuisine but to experience our interior design solutions firsthand. We believe that the dining experience should extend beyond the plate and offer an all-encompassing feeling of warmth, comfort, and luxury. Tell us more about the design and ambience of Quince since it is clearly distinctive. What was the journey and inspiration behind selecting these pieces and fixtures?

The design and ambience of Quince are indeed distinctive and have been carefully curated to invoke a sense of dining in one’s own luxury home. Throughout Quince, you’ll notice hints of honey gold in our lighting fixtures, which complement the warm, inviting tones of wood used in our interior design. These elements contribute to the creation of a space that exudes a sense of coziness, which combined with soft lighting sets a comfortable backdrop for our culinary offerings. Our design philosophy however, extends beyond the interiors and reaches into our garden area as well. We wanted our guests to feel as if they were not just dining within the walls of a restaurant but were stepping into a space that transcends the boundaries between indoors and outdoors, creating a seamless experience. Quince’s space is dynamic; there exists the open kitchen, the dining area, and the indoor garden, which were intentionally designed to provide distinct yet interconnected spaces within the restaurant. These areas have been carefully crafted to offer our guests a sense of dining in a luxury space, complete with the warmth 64

December 2023

and comfort that one would associate with home. Sustainability and locally-sourced ingredients are becoming increasingly important in the restaurant industry. How does Quince incorporate these principles into its menu and operations?

At Quince, we try our best to incorporate sustainability and also prioritise using locally-sourced ingredients wherever we can. We have taken a holistic approach to incorporate these values into every aspect of our culinary offerings. First and foremost, we pride ourselves on making everything in-house. From our homemade pasta to our sauces and even our butter, we are committed to crafting our ingredients from scratch. This approach not only ensures the highest quality but also allows us to minimise waste by utilising every part

of the ingredients. For instance, one of our dishes features mashed potato, while another uses potato skins to ensure nothing goes to waste. We also make all our stocks from scratch, avoiding the use of powdered alternatives. Even our spices and seasonings, like salt, pepper, and our organic spice blends, are crafted in-house, allowing us to maintain full control over the quality and sustainability of our ingredients. When it comes to desserts, we use premium quality ingredients including the finest variety of chocolate and organic cocoa. We do this to ensure our sweet treats and the wide range of homemade sorbets and ice creams that we offer are both delectable and sustainably sourced. We take a zero-waste approach here too; for example, we use every part of a lemon, from the skins to the juice and zest, in our dessert menu. gulfbusiness.com

Lifestyle / Horology

Pics: Supplied

Ahead of its time FRANCOIS-HENRY BENNAHMIAS, THE OUTGOING CEO OF AUDEMARS PIGUET, SHARES HOW THE BRAND HAS ADAPTED AND EVOLVED WHILE STAYING TRUE TO ITS CORE VALUES OF CRAFTSMANSHIP, PRECISION AND ARTISTRY BY NEESHA SALIAN

gulfbusiness.com

udemars Piguet (AP) was in the news recently for its latest collaboration with Houstonbased rapper Travis Scott and his record label, Cactus Jack. The new chocolate brown Royal Oak perpetual calendar ‘Cactus Jack’ LE is limited to 200 pieces and priced around $201,000. While Scott’s design and stamp seem obvious, the timepiece is undoubtedly AP. The skilled craftsmanship, precise engineering, intricate complications, and legacy of innovation are hallmarks of this launch and others in the AP family, keeping the manufacture at the forefront of the Swiss watchmaking industry. Scott is one of many in the world of entertainment, sport and music to have joined hands with AP, revered as one of the ‘Big 3’ – the top three ultra high-end Swiss watchmakers credited with setting the exalted standards of haute horology. The brand, which has consistently pushed the boundaries of what is possible in watchmaking, has created new partnerships involving its impressive and sought-after timepieces in the world, including the Royal Oak and Royal Oak Offshore. AP’s Millenary and Code 11.59 are also avant-garde timepieces. The new Code 11.59 Ultra-Complication Universelle RD#4 is one of the star launches of the year. This watch pays tribute to Audemars Piguet’s long history of form and design experimentation and is particularly important to Francois-Henry Bennahmias, the Frenchborn CEO of AP, who has played a pivotal role in propelling the brand to international fame during his time as CEO. The watch won the ‘Aiguille d’Or’ Grand Prix in November and is the manufacture’s very first ultra-complicated self-winding wristwatch that is housed in a highly contemporary design. This is one of many triumphs for Bennahmias. Under his leadership, the brand has experienced significant growth. The former golf player is credited with taking AP from a CHF600m a year business to a CHF2.01bn empire within a decade as CEO, solidifying its legacy for years to come. Bennahmias, who has clocked in almost three decades with the Swiss watchmaker, has navigated the legacy brand into the future with some unprecedented moves: in the 90s, he brokered a deal with Arnold Schwarzenegger to collaborate on a Royal Oak Offshore limited-edition watch. December 2023

“We are surprised by who’s coming to us every day. We couldn’t have |predicted that 15-year-olds would be bringing their parents to our stores, or that we would see a growing number of women wearing APs at the Dubai Watch Week and across the world.”

Collabs with Jay-Z and James LeBron, followed in 2005 and 2013, and a tie-up with Alyx and Givenchy designer Matthew Williams was next. Under his direction, the brand also joined forces with Marvel to create special Black Panther and Spiderman editions. And then, there’s the most recent collaboration with Scott. Audemars Piguet has also been closely linked to the world of art through its collaboration as the official associate partner for Art Basel since 2013. Bennahmias is instrumental in the launch of AP House, an innovative retail concept where AP’s iconic collections are sold in private, residential-style spaces, most located on the upper floors of buildings in 15 cities around the world. These place customers at the centre of the AP experience, and conversations as the bridge to better service. He also oversaw the progress of the Musée Atelier Audemars Piguet project which opened to the public on June 25, 2020, giving AP fans an insight into the brand’s cultural universe, past, present and future. In 2022, the charismatic CEO announced he would be leaving AP at the end of December 2023. Gulf Business caught up 66

December 2023

with Bennahmias at Dubai Watch Week, which was held at DIFC, from November 16 to 20. The outgoing CEO spoke to us about his legacy, stepping outside the box, partnerships, and why the brand is all set to step into the future even without him. Looking back at your 11 years as CEO, what are you most proud of?

We’ve built a team of talents who are passionate, creative and crazy, and this team is stronger than ever before. If you look at what happened to us in 2020 during the Covid-19 pandemic, the company’s revenue went down by only 4 per cent. This proved the resilience of the brand and that it could weather any type of storm, particularly as we step into the future. Over the past 11 years of my term as CEO, we’ve done so many things together as a team. People love to talk about how we’ve stepped outside the box with our collaborations, the AP House and the creation of the Code 11.59 timepiece, among other things. However, while doing things considered “outside the norm”, we also stayed true to the company’s core values, foundation and strategy. It has been our ‘North Star’. We have so many wonderful people on the team, and

everyone is smart and driven, and they are all aligned to work together to enhance the company and our legacy. I am incredibly proud of them. You mentioned that you have never steered away from the company’s strategy. What is the strategy?

Fewer, bigger and better on everything. We have a smaller distribution network, and fewer references in the collection, but we’re focused on building our client base, adding more customer experiences, and just being better at everything we do, be it quality, innovation, client experience and relationships. Ultimately, we are watchmakers at heart, and this is what we do best. What is the customer profile of an AP fan?

I would not be able to say that there’s a typical customer. We are surprised by who’s coming to us every day. We couldn’t have predicted that 15-year-olds would be bringing their parents to our stores, or that we would see a growing number of women wearing APs at the Dubai Watch Week and across the world. In the past, we used to make special collections for certain gulfbusiness.com

Lifestyle / Horology

markets. For example, we used to make more classic, small watches for Asia. Today, we have one collection for all our markets and all of them do well. So, the answer to that question is anybody who loves AP is our customer today. Tell us about AP’s focus on customer experience.

Building a community is key to delivering on customer experience as is providing the best service. The AP House was a major move for us in that direction and customers loved the concept. We will be setting up more across the world. First and foremost, we listen to our customers. Customers are constantly giving you hints on how to deal with them, or what they don’t like – it’s across all sectors such as art, hospitality, travel, and retail. So, listen to your customers. I think it’s an important factor for success in the short and long term. What are the key trends you see influencing luxury watches?

Product innovation is key to evolving

gulfbusiness.com

customer preferences. All our watches are fitting examples of innovation. Watches are getting thinner and the ergonomics of the case and fit on the wrist are also transforming. We must go back to the foundations of watchmaking, which is focused on designing and making seriously complicated watches and creating thin watch movements. For example, Code 11.59 Ultra Complication Universelle is the brand’s most complicated wristwatch in recent years. It harks back to a time when high watchmaking prized highly complicated watches incorporating as many features as possible into a wearable package. It’s truly a marvel. This unique timepiece features 40 different functions, 23 of which are complications. Among these are a Grande Sonnerie Supersonnerie, minute repeater, perpetual calendar, split-seconds flyback chronograph, and flying tourbillon.

and their distinctive perspectives as leaders in the field of innovation will help us imagine and shape the future of haute horlogerie, with the unveiling of our first project in 2025.

Tell us about your recent partnership with the Dubai Future Foundation.

What’s next for you?

I am very excited about this partnership. It aims to promote talent and cutting-edge research collaboration. The creative minds (at Dubai Future Foundation)

Any advice for young leaders?

Work hard. I’ve never seen anybody succeed in the long term without working hard. Be curious and step outside your comfort zone. Also, keep learning, and learn how to keep learning. I spent 29 years in the same company; I’m a dinosaur. However, the young generation would never spend that much time in a company. Trends such as artificial intelligence are changing things. There will be good changes and some bad ones. In five years, some jobs will be gone. So, adapt and upskill. Finally, don’t go too far away from love – for your art or trade, your colleagues, family, and life. I have been doing this for a long time. I am now ready for some rest, recovery and recuperation. I intend to drop out of sight and relax. I think it will be great to disconnect and just ‘be’.

December 2023

DEC

The SME Story

A DEDICATED HUB FOR THE REGIONAL STARTUP AND SME ECOSYSTEM

The SME Story / Growth Strategy Ryaan Sharif, general manager, Flat6Labs UAE

Pic: Getty Images

Pic: Supplied

Enterprise entrepreneurship

Here’s what larger businesses can learn from nimble newcomers

n the Arab Gulf region, when we talk about exciting developments and the next big thing, startups get all the attention. There is a perception that new companies with new thinkers are delivering new things at the speed of “What just happened?” It is known that they are traditional heavy hitters in any economy. 68

December 2023

According to World Economic Forum figures, 90 per cent of the world’s companies are SMEs. They employ half the global workforce and contribute up to 40 per cent of GDP in emerging markets. According to government estimates from last year, in the UAE, SMEs contribute around 63.5 per cent of non-oil GDP. It

is natural, therefore, to assume that larger companies, hamstrung by policy and scale, simply cannot behave with as much agility. The slightest deviations in course are a challenge, let alone 90-degree pivots or 180-degree retreats. But must it always be startups leading the way? When we cast our eyes over industries, will we continue to see nimble fintechs challenging traditional banks, or fledgling electric automakers beating out decades-old businesses? A startup’s success comes from being able to start over. Fewer stakeholders means less people to consult; less infrastructure means less to rip out and replace. In short, they can afford to take that old Silicon Valley advice and “fail fast”. But not everything is in the startup’s favor. On the flip side, they are small. And being small means being especially susceptible to market fluctuations. It means gulfbusiness.com

The SME Story / Growth Strategy

having to fight that little bit harder and glow that little bit brighter to secure capital and build the ideal team. The vision has yet to become a reality, so these nascent enterprises have yet to become known for anything. In place of a record, they must rely on the founders’ drive to build a culture that is brimming with entrepreneurial spirit. This will get them noticed and nurtured.

90 PER CENT OF THE WORLD’S COMPANIES ARE SMES. THEY EMPLOY HALF THE GLOBAL WORKFORCE AND CONTRIBUTE UP TO 40 PER CENT OF GDP IN EMERGING MARKETS

ELEPHANTS CAN DANCE In contrast, if we look at the legacy leviathans of industry, we see less of these challenges. We see fewer problems when getting access to capital and talent. And we see a recognised name – one with reputation, influence, and a customer base. While it takes years for a startup to gain the advantages of scale, a larger enterprise could, in a relatively short interval, foster the culture of entrepreneurial spirit that gives startups their momentum. By rediscovering their youth, so to speak, enterprises can revitalise their brand and enjoy sustainable prosperity. Cultural change is all-pervasive. It percolates the organisation from top to bottom. Every employee is part of the journey – every executive, every manager, every frontline worker. Each will genuinely care about being competitive and staying relevant rather than being custodians of a stale, safe, and sensible institution. Someone, somewhere in Emirates’ workforce was thinking like a fresh-faced entrepreneur when the Covid-19 crisis grounded flights across the world. Emirates Flight Catering came up with Foodcraft, a home-delivery service that used the aviation giant’s idle assets – people, kitchens, and land-vehicle fleets – to keep going and stay relevant.

Foodcraft is a single illustration of the advice I give here to large-scale enterprises everywhere on how to behave like you are a nimble start-up again. 01 ANYONE CAN INNOVATE

If you were to decide tomorrow that you wanted to rediscover your youth – all the things that made your brand great when you were starting – then you have to begin with communication. Your journey to enterprise entrepreneurship may be shorter than a startup’s path to ‘unicornhood’, but it will still not happen in a day. Share your vision with employees; let them know that the company is eager to hear from them if they have a promising idea. Much like a newborn firm, having talked the talk, you must walk the walk. Open-door policies may sound like empty clichés in a multinational, but you are unwinding culture here. Nobody is suggesting a grandiose ceremony to remove all doors from hinges, but when an employee has something to say, the youthful-spirited company listens. You must take a different approach to management, casting off worn-out concepts like clocking in, and the measurement of calls placed in a day. Replace these

“IF YOU WERE TO DECIDE TOMORROW THAT YOU WANTED TO REDISCOVER YOUR YOUTH — ALL THE THINGS THAT MADE YOUR BRAND GREAT WHEN YOU WERE STARTING — THEN YOU HAVE TO BEGIN WITH COMMUNICATION.” gulfbusiness.com

performance metrics with ones for the modern day. Rather than measuring inputs, measure outputs. When output drops to worrisome levels, then you can work with the employee to address the issue. Make performance reviews and improvement collaborative rather than combative. 02 TRAINING YOUR TALENT

Startups take mentorship seriously. So should the enterprise. The enterprise has an advantage here. It has a record of experience and can easily pair promising new talent with the appropriate veterans. If teams also regularly mix and share ideas, this will help further. Monthly brainstorming meetings and pitch days should be standard. And do not hesitate to engage third-party consultants – experts in the field of entrepreneurship – to help by offering seminars and training. 03 EXPECT FAILURE

Much as startups fail fast, larger enterprises should brace for the same in their innovation projects. The culture must include room to tolerate justifiable risk. Encourage careful and continuous analysis of failures so they are caught early and corrected. 04 ENCOURAGE OWNERSHIP

The one thing that fosters drive and motivates innovation at a startup is a sense of ownership in the company and its vision. Entrepreneurs and their leadership teams happily push themselves in terms of hours and effort, so enterprises must come up with ways to encourage employees to feel the same sense of responsibility for their innovation projects. Allow them to set their realistic deadlines and progress roadmaps but hold them to their timelines. Create incentives around special titles and perks.

RELEVANT AND HERE TO STAY Enterprise entrepreneurship is the future for any larger organsation that wants to cement its place in its industry and the larger economy. The creation of such a culture should be the priority of every business leader who wants their brand to remain relevant in the modern world. December 2023

The SME Story / Interview

A unique proposition

We speak to two entrepreneurs who are leveraging technology to bring to market innovative and impactful offerings

Tell us about your funding and how has Hub71 helped you.

Mohammed Ali Yusuf, co-founder and CEO, Fuze

We are proud to be a member of the Hub71 community, where we have interacted with leading regional and global startups and mentors, who have helped us during our early days as a startup. Working in such a thriving ecosystem in Abu Dhabi has helped us quickly overcome challenges while forging new partnerships. Our recordbreaking $14m seed funding was led by Abu Dhabi’s Further Ventures, with participation in the round by US-based Liberty City Ventures. How do you see the growth of digital assets in the Middle East region?

What inspired you to start this business?

Pic: Supplied

The Middle East and North Africa (MENA) region is the world’s fastestgrowing digital assets market, so there is a significant opportunity to build relevant infrastructure that will enhance this ecosystem. We saw the emerging trend of fintech, and how it has started to impact businesses and consumers’ lives with increasing value and efficiency. The region is going through an incredible transformation, with the advent of proactive regulations, exciting innovation, and entrepreneurship capital. And we believe this democratisation of finance can be accelerated with the transformative potential of blockchain. We don’t see blockchain competing or replacing financial services. Instead, it will enhance banking with more efficiency, speed and lower costs, while also providing new investment opportunities for institutions and retail investors. To deliver this at scale, such technologies will only deliver their true potential when robust infrastructure exists to make them easily and reliably available to all those who wish to participate in this unprecedented period of financial innovation. 70

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The Middle East and North Africa (MENA) region’s digital asset market saw record-breaking growth in 2022, with transaction volumes reaching $566bn and a growth rate of 48 per cent. This exceptional growth is expected to continue in the coming years, making the region a key market for digital asset infrastructure providers. We believe that the region needs a reliable and regulated infrastructure provider to support this growth. Our platform will provide our clients and stakeholders with the tools and services they need to participate in the digital asset market safely and confidently. Partnering with Fuze and benefitting from our compliance and security can help a company navigate the blockchain landscape effectively. What are some of the challenges you faced when starting?

As a UAE-based company, we are fortunate to operate in a jurisdiction with progressive and encouraging regulators. However, this is not the case for all jurisdictions in the MENA region, which could impact mass adoption of digital assets. Our work in these jurisdictions is to continue engaging with and supporting governments to

progress and develop a thriving digital assets ecosystem. Tell us about your offering, its USP and business model.

A first-of-its-kind infrastructure provider in MENA, Fuze enables any bank, fintech or traditional enterprise to easily offer regulated digital assets products to their customers through their native apps. Our white-label solutions and APIs handle the complexities of blockchain and regulatory overheads for enterprises, enabling these organisations to readily offer digital assets such as stablecoins, cryptocurrencies, CBDCs (central bank digital currencies) and tokenised assets. Fuze also offers an OTC (over-thecounter) service, providing clients with a secure and regulated platform to meet their crypto trading requirements. Clients can access institutional grade liquidity across multiple cryptocurrencies and receive competitive pricing with best execution leveraging our algorithmic trading capabilities. In straightforward terms, this means customers can conduct typically larger trades of digital assets efficiently and securely. These institutions and professional investors can benefit from multiple execution methods across API, chat or voice and receive dedicated client coverage providing white glove service to manage the full trade lifecycle. What are some of the expansion plans you have in your pipeline?

In the UAE, our headquarters are in Abu Dhabi. We also have an office in Dubai. We have an office in Turkey. Through these offices, we serve customers in the Middle East and Africa. Our recent funding will fuel our growth, particularly across licensing, technology and strategic hires, so that the business can meet the growing demands for regulated digital asset capabilities. gulfbusiness.com

What were some of the biggest challenges that you faced when starting the business? Marina Sol, founder and CEO, Diagnio

What inspired your decision to start your company?

As of today, 30 million women worldwide struggle to get pregnant every year. Currently, the clinical definition of infertility used by WHO is still “a disease of the reproductive system defined by the failure to achieve a clinical pregnancy after 12 months or more of regular unprotected intercourse”. This means that an average woman has to go through a whole year of unsuccessful tries to conceive before becoming eligible to get properly diagnosed and treated for infErtility. The whole women’s health sector is so underserved and under researched, and women do not have enough access to early and regular screening. So as tech innovators, we believed we could, and we should, do so much in this regard. For me, fighting this problem is a very personal payback story. My mother spent 50 years of her career on a mission to treat women’s hormonal and reproductive disorders. Thanks to her research, I had the privilege to be born into this world as one of the first IVF babies in my home country. So, I always knew I was in a sense destined to do what I do: building businesses at the intersection of healthcare and technology. I came up with the idea of Diagnio during the Covid-19 pandemic, when express PCR testing technologies emerged, and the habit of at-home testing for consumers was formed. So finally, we put together a product (hardware and software based), that would test for hormones using saliva, instantly give you results and allow for tracking the hormonal changes over gulfbusiness.com

I’ve spent the last 15 years in the healthcare industry working in ‘Big Pharma’ and on my own startups. Because of this experience, I was able put together a great team from the medtech field and have a clear vision of how to grow this business. But of course especially in the healthcare field, there are always tough barriers that need to be overcome. First, I would say, is navigating the regulatory process. As we have both software and hardware components, we need to undergo a long and expensive process to get clearance from regulatory bodies. While understandably necessary, this can be challenging for small organisations, and is often what health startups always struggle with the most.

Second, even though there’s an increasing acceptance of innovation in the healthcare sector, breaking through, and engaging with, the major market stakeholders – big pharma, big insurance players or governmental health providers – remains quite difficult. Big corporate structures in healthcare are not yet ready to implement early-stage innovations. If key stakeholders could change some of their processes and be more receptive to startup innovation cycles, we could execute our plans much faster, for the betterment of the whole market and society in general. How are you different from some of the other players in the market?

Our business model is simple yet unique for the market, and that’s because we have three revenue drivers in our product: the data from the biomarkers, the in-app algorithms and services, and the subscription for

test strips. So we actually wholesale the hardware device to clinics, and consumers can buy it directly online at a $100 price tag. In the app, we sell subscriptions for the test strips for $25/ month, in addition to offering other in-app services. Our primary competitors in the region include traditional labs. However, these are rather expensive and inconvenient, as you have to spend time going there, and lack privacy for such personal matters. The other is the simple urine-based test strips for fertility, which lack a digital component to track, interpret, store, and analyse the results. Diagnio brings together the simplicity of the testing process, privacy of at-home usage, non-invasive testing method, accessibility in price, and digital application to provide lab-quality testing in the comfort of one’s home. What are your future plans to raise capital as well as strategic plans for the region?

We are presently at our $1M seed round, raising the remaining $300K to achieve two major milestones. One is achieving $800K in sales in the next 12 months. We will target clinics and doctors in the region through B2B sales. And for our B2C channels, we are already rolling out our content marketing and communitybuilding strategy. The second objective is to launch the next generation of hormone saliva tests from our R&D pipeline, including progesterone, cortisol, prolactin and thyroid hormones. This expansion significantly widens the spectrum of indications we cover in women’s health – an unprecedented milestone in our field, setting us apart as champions in point-of-care diagnostics. Further on, we also plan to expand to the broader MENA region and then globally. December 2023

Pics: Supplied

time. Exactly what women need – given the natural cycle of our bodies.

Interview / Startup Success Story

Transforming customer experience Gulf Business speaks to Ragy Thomas, founder and CEO at Sprinklr, on the company’s decision to set up their growth markets HQ in Dubai as well as the key trends driving customer experience

RAGY THOMAS, founder and CEO, Sprinklr Tell us about Sprinklr. Why did you choose Dubai as your growth markets’ headquarters?

several reasons. First, Dubai’s location at the crossroads of the East and West serves as an ideal bridge for facilitating international business interactions. This strategic advantage simplifies travel, accessibility, and transit for individuals traveling to and from other countries, making it an attractive location for businesses looking to expand globally. Sprinklr teams in India can easily travel to Dubai for business, enhancing efficiency and innovation. Furthermore, the city has demonstrated remarkable resilience in the post-pandemic era by creating an environment that is conducive to global companies looking to expand their presence within and beyond the region. Government initiatives, such as those offered by TECOM, have extended economic incentives and fostered a business-friendly climate. The government entities in Dubai have also exhibited unwavering support for initiatives

introduced by global companies, further enhancing the attractiveness of the region for businesses like us. Finally, Dubai has also become a hub for attracting talented professionals from all over the world giving access to a large pool of skilled workers. For all these How does a unified customer experience management platform enhance the overall customer experience for modern enterprises?

In today’s world, customers experience brands through marketing, websites, digital channels, sales engagements, customer service, technical support and a myriad of ratings, reviews, and blog posts. These are all touch points where customers meet and experience a brand. It’s what I call the digital edge. It’s where all the risk is, along with the greatest sales opportunity. And yet the responsibilities for these touch points can reside in different

Pics: Supplied

Sprinklr is a leading global enterprise software company that provides a unified platform for all customer-facing functions – customer service, marketing, social, sales, and research – for customers. Headquartered in New York City and traded on the New York Stock Exchange under the ticker CXM -- Sprinklr works with more than 1,400 of the world’s most valuable enterprises. Global brands such as Microsoft, P&G, Samsung and more than 50 per cent of the Fortune 100. We operate across three key regions: the Americas, Europe (divided into three distinct regions), and the growth markets, comprising the Middle East, AsiaPacific, Japan and India. Dubai was a clear choice for Sprinklr’s growth markets headquarters for 72

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gulfbusiness.com

“WE ARE MOVING FROM A BRANDCENTRIC PAST TO A CUSTOMER-CENTRIC FUTURE. THIS IS WHY IT’S NEVER BEEN MORE IMPORTANT TO BE WHERE YOUR CUSTOMERS ARE AND ON EVERY CHANNEL OF THEIR CHOICE. WE NEED TO LISTEN TO WHAT CUSTOMERS HAVE TO SAY, WHAT THEY VALUE AND WHAT MATTERS TO THEM MOST.” teams, in various parts of the business. Together, every customer-facing team must work to manage a brand’s digital edge. While it is one of the most complicated things to orchestrate when it is done right, customers are happier, and brands flourish with a reputation for exceptional customer experience. For major brands, it often seems impossible to create seamless customer experiences across a multitude of channels, functions, business units and markets. unified customer experience management (Unified-CXM) is gulfbusiness.com

differentiated at its core with a singleinstance, AI-powered architecture that simplifies this complexity. It also gives brands access to publicly available conversational and unstructured data in a safe and privacy-compliant way that the current CRM and CDP relational databases cannot. What are the benefits of implementing this platform in today’s business landscape?

We are moving from a brand-centric past to a customer-centric future. This is why

it’s never been more important to be where your customers are and on every channel of their choice. We need to listen to what customers have to say, what they value and what matters to them most. That’s why Sprinklr has built and continues to build, the only unified front office platform that provides an operating system for the edge of a company’s brand. That’s where you meet your customers. That’s where the truth is. That’s where the risk is. There is so much value when customers meet and engage with a brand across regions, business units, functions and teams. Companies can’t afford not to have a handle on their digital edge. Our customers, large global enterprises, are focused on delivering value to their customers. But they need the insight and data to drive efficiency, productivity and cost savings which is the differentiated value our AI brings. Customers continue to ask us for help to consolidate front-office technologies, reduce operating costs, and help reduce risk, all while bringing people and data together to create better customer experiences. For example, enterprise contact centre agents may have to use anywhere from five to 25 systems to find December 2023

Interview / Startup Success Story

the information they need to assist customers. The Sprinklr platform provides all the necessary tools and data in one place, which can significantly improve efficiency and response times. Last year, Aramex – the Dubai-based leading provider of comprehensive logistics and transportation solutions – announced it chose Sprinklr to improve the efficiency and scale of its digital customer service. These agents can now handle customer queries with a 50-60 per cent faster response time through automation. Improved efficiency can help brands reduce staffing time and costs. Sprinklr Insights empowers our customers with real-time, AI-powered insights on current events and public conversations about brands or issues to help detect issues or crises before they become consequential. This helps our customers make proactive, informed decisions about owned media strategies and tactics for reputation management and crisis response. Sprinklr’s AI-powered architecture simplifies and unifies internal teams

and external data on a single platform to enhance productivity, boost the quality of insights and interactions, and drive automation across front-office functions while safeguarding data privacy and ensuring brand and regulatory compliance. Share with us your market strategy and key customers in the UAE.

Our brand’s focus is on serving large

SPRINKLR WORKS WITH MORE THAN 1,400 OF THE WORLD’S MOST VALUABLE ENTERPRISES. GLOBAL BRANDS SUCH AS MICROSOFT, P&G, SAMSUNG AND MORE THAN 50 PER CENT OF THE FORTUNE 100

global companies. In the region, our market strategy is to win marquee clients and provide exceptional value in helping customers unify their teams, consolidate front-office technology, increase productivity, lower costs, and mitigate brand risk. We have grown our business in the region initially targeting organisations in the public sector and then expanding our target market to several other enterprise sectors such as banking, retail, financial services, telco, and major B2B companies as well. We continue to grow our business and are fortunate to count many major brands among our notable customers in the region, like Americana Foods, Aramex and 6th Street. Sprinklr plans to expand in the region in partnership with our customers as we continue our journey to create a new category of enterprise software with Unified-CXM. What are your future plans and goals for operations in the UAE?

Pics: Supplied

As mentioned before, we hope to continue to expand in the region with both direct-sales strategy and by developing a robust partner ecosystem to increase accessibility to our products and platform as we look to penetrate the target market more deeply. We continue to advocate for the Unified-CXM approach through thought leadership and by hosting events to bring customers and partners together to learn best practices from each other. 74

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