GULF BUSINESS SEPTEMBER 2020 -BBG EDITION

SPECIAL REPORT: THE GCC’S EVOLVING BANKING LANDSCAPE

SEPTEMBER 2020

Danube Group chairman Rizwan Sajan on why the UAE is poised for a ‘V’ shaped recovery from the Covid crisis

“HERE’S WHAT I SEE”

p.32

Cybersecurity: Are corporates well protected?

p.60

Keeping watch: Seddiqi CCO on adapting to the crisis

Gulf Business

CONTENTS / SEPTEMBER 2020

07

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

43

Special Report: GCC Banking From technological disruption to consolidation, the regional banking landscape is in the midst of an overhaul

22

Cover Story: The ‘V’ Vision In an exclusive, Dubai-based businessman Rizwan Sajan reveals why he is optimistic about a quick recovery in the UAE

gulfbusiness.com

September 2020 3

Advertorial

J E R S E Y

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L O N D O N

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D U B A I

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M U M B A I

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H O N G

K O N G

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S H A N G H A I

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N E W

Y O R K

The Perfect

Eco-system for Alternatives For more than 50 years, Jersey has developed a well-respected funds sector. At the end of 2019, the total value of fund assets serviced in Jersey rose to reach a new record high of almost $500 billion.

There’s good reason for this success.

Sitting within Europe, not part of the UK or EU but with strong ties to both, Jersey is a stable, neutral centre, with robust regulatory and legislative regimes, decades of experience and one of the largest specialist workforces (around 14,000 professional) of any international finance centre.

Faizal Bhana Director, Middle East, Africa and India Jersey Finance

In terms of market access, Jersey’s position means it can provide a straightforward solution for managers, no matter where they, their assets or their investors are based. In particular, Jersey can act as a gateway to Europe through tried and tested private placement regimes, whilst beyond Europe, managers from markets including the US, the Gulf region and Africa are looking to future-proof their funds through a jurisdiction that can offer long-term guarantees and optionality – and Jersey ticks these boxes.

Innovative As a forward-thinking jurisdiction, Jersey continues to embrace innovation too. The Jersey Private Fund, for example - launched in 2017 - has proven incredibly popular, whilst with its structures and specialist expertise, Jersey is well positioned to play a key role as the sustainable finance agenda evolves, and to support Shariah-compliant structures.

With regulatory initiatives making cross-border investing more complex, and investors looking at alternatives as they seek diversification as well as returns, Jersey’s expertise looks set to become increasingly attractive amongst investors in the Gulf region.

UK

Experience

Regulation

Substance

Over 50 years at the forefront of global finance, with a wide range of products and services

Our strong and respected regulatory framework sets us apart from other IFCs

We’re proud that a whole range of major financial services firms are based here

JERSEY

For further information on Jersey’s world-leading international finance centre, contact: FRANCE jersey@jerseyfinance.je

/company/jersey-finance

+44 (0) 1534 836000

/jerseyfinance

www.jerseyfinance.je /jerseyfinance

CONTENTS / SEPTEMBER 2020

32 Finding the weakest link Are corporates investing adequately in cybersecurity?

40 Leading the way Gulf Business Lifetime Achievement Award past winners

“This deal is a significant step towards building a more peaceful, secure and prosperous Middle East” - US President Donald Trump on the peace deal signed beween the UAE and Israel

59

Lifestyle

Keeping pace p.65

Maserati’s new path p.70

Editor-in-chief Obaid Humaid Al Tayer Managing partner and group editor Ian Fairservice Group director Andrew Wingrove andrew.wingrove@motivate.ae Acting editor Aarti Nagraj aartin@motivate.ae aartinagraj Deputy editor Varun Godinho varun.godinho@motivate.ae varungodinh Tech editor David Ndichu david.ndichu@motivate.ae Contributor Zainab Mansoor editorial.freelancer@motivate.ae Senior art director Olga Petroff olga.petroff@motivate.ae Art director Ángel Monroy angel.monroy@motivate.ae angel__monroy Photographers Jitendra Jangir Cover: Ángel Monroy Photo: Mox Santos

Alluring Africa p.72

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

Vol. 25. Issue 5. September 2020 Printed by Emirates Printing Press, Dubai

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

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

gulfbusiness.com

September 2020 5

On target

The Brief

IPL 270-290

360

EPL 297

245-260 245-260

246

Liverpool

Manchester City

Manchester United

SOURCE: THIS INSIDE SPORT AND THE SWISS RAMBLE

ILLUSTRATION: GETTY IMAGES/PM IMAGES

20

Mumbai Indians

SEP Kolkata Knight Riders

8 10 12 15 17

US$ (2018/2019)

Chennai Super Kings

Startups Technology Future Social F&B

Here’s how the Indian Premier League’s most valued teams compare with the English Premier League’s top clubs

Checking the digital pulse

Healthcare providers in the region must enhance their digital offerings to meet the demand in the market p.14 gulfbusiness.com

September 2020 7

The Brief / Startups

ILLUSTRATION: GETTY IMAGES/BCPG

technologies to help tackle its challenges.”

Earlier this year, Phaze Ventures tied up with Oman’s global integrated energy services firm OQ to develop and invest in disruptive energy technologies worldwide, and work together across a number of areas including investments, talent development, technology incubation and pilot projects.

“Our partnership with OQ marks an important step on that journey, and adds to our existing strategic partnership with Petroleum Development Oman and other forward-thinking innovators. These part-

A N A LY S I S

Bridging the gap Oman’s startup and innovation ecosystem is picking up pace, writes Zainab Mansoor

G

CC states, in recent years, have undertaken a series of initiatives with the common purpose of diversifying their economies away from oil. Investments in technological innovations, as well as an injection of resources into the startup landscape, have led to the emergence of thriving entrepreneurial ecosystems across the region.

However, Oman’s startup space has historically trailed its Gulf neighbours, such as the UAE and Saudi Arabia. Although the sultanate has taken several steps to nurture its startup and technology sectors in recent years – including the establishment of the Oman Technology Fund in 2016 – the lack of adequate investment firms continued to impede growth.

The intent to enable innovation and tap the potential of a youthful market led to the establishment of Phaze Ventures, 8 September 2020

Oman’s first private venture capital (VC) firm. The firm invests in disruptive technologies in the energy and logistics sector.

“We founded Phaze Ventures at the start of 2018 as the first private venture capital firm in Oman. Since then we have gone on to invest in seven companies across three continents (with a few more in the pipeline), build an incredible platform with our accelerator programme, and create high impact partnerships with the largest organisations in the country,” says Abdullah Al-Shaksy, co-founder and CEO at Phaze Ventures.

“We are extremely interested in disruptive technologies such as industrial internet of things, novel AI applications, nanotechnology, and automation with the ability to create a significant and sustainable impact on a global scale. Energy and logistics are two sectors going through rapid change, opening the door to new

IN THE WAKE OF THE PANDEMIC AND PLUMMETING OIL PRICES, THE STARTUP ECOSYSTEM IN OMAN AND THE WIDER REGION HAS REMAINED RESILIENT nerships allow us to support our portfolio in rapidly scaling disruptive technologies, as well as help our partners gain access to innovations and innovators,” notes Al-Shaksy.

In the wake of the Covid-19 pandemic and plummeting oil prices, the startup ecosystems in Oman and the wider region have remained resilient, lending hope to further growth. While MENA-based startups, in total, attracted investments of $659m in the first half of the year, Oman secured 12 per cent of MENA’s total deals in H1 2020, startup data platform MAGNiTT’s report revealed.

“A lot has changed. Venture deal volumes and size have continued to accelerate. However, supply chains have turned inwards, startups are more focused on sustainability and profitability than ever before. The stress test of the economic impact [of the Covid-19 pandemic] has certainly hardened many critical parts of the ecosystem by uncovering its vulnerabilities and allowing founders, investors and regulators alike to address critical gaps,” concludes Al-Shaksy. gulfbusiness.com

The Brief / Q&A INTERVIEW

Ali Al Jassim Chairman of Emirates Green Building Council (EmiratesGBC)

Explainer: How can the construction sector ensure the new normal is green?

Sustainable policies and awareness will help build a better future

the region – is to resort to the overuse of air conditioning. Even small measures, such as setting the temperature at an optimal 24 degree Celsius, helps in achieving higher levels of energy efficiency, but such steps need concerted awareness.

The United Nations has projected that by 2050, 68 per cent of the world’s population will be living in urban areas. How significant is it to adopt green building practices?

ILLUSTRATION: GETTY IMAGES/WITT UDOMSILP

Green building practices are significant, as highlighted in the UN SDG 11 – Make cities and human settlements inclusive, safe, resilient and sustainable. There are various reports that highlight the urgent need for green buildings around the world.

Green buildings can not only reduce or eliminate negative impacts on the environment, by using less water, energy or natural resources, but they can – in many cases – have a positive impact on the environment (at the building or city scale) by generating their own energy or increasing biodiversity. It is important to note that green buildings do not only consider energy efficiency but other aspects such as resource efficiency (water, materials, waste), indoor environmental quality (air quality, lighting, noise, thermal comfort), health and wellness (ergonomics, biophilia) and accessibility and connectivity (transportation and walkability).

What are the key enablers that foster the green building sector?

What are the current challenges to sustainable construction in the GCC region?

Changing behaviour and set patterns is always a challenge – and this is applicable to any sector.

Across the region, discussions on sustainably built environments have gained momentum only in the past decade. There is still a perception that green buildings are costlier and changing this will take concerted efforts and time. The need to shift human behaviour towards more sustainable practices is another challenge, given that the common response – especially in harsh weather such as in gulfbusiness.com

68%

of the world’s population will be living in urban areas by 2050, the UN has projected

There are several enablers that help in advancing the green building industry. These depend on the objectives of the stakeholder within the industry chain, such as long-term financial savings, having the ability to address climate change and gaining trust of the various stakeholders.

Buildings represent a major opportunity in addressing global climate emissions. For government authorities, the green building industry offers several opportunities in meeting not only local targets and strategies, but also meeting international commitments.

How is the Emirates Green Building Council fostering sustainability regionally?

We foster sustainable development through a comprehensive and integrated approach. In addition to September 2020 9

The Brief / Technology Zooming up

Globally, Zoom’s growth has been exponential due to Covid-19

strengthening awareness about green buildings, we also encourage our members and the community to follow the industry best practices.

We have a full calendar of technical trainings and programmes for our stakeholders, which we have been conducting for many years now – helping achieve tangible changes.

Last year, we launched our Energy and Water Performance Benchmarking study for hotels, schools and malls in partnership with the Dubai Supreme Council of Energy.

In rebuilding a post Covid-19 world, how can economies ensure that the ‘new normal’ is green?

We are in an unprecedented era. The Covid-19 situation has further underlined the need to act more responsibly. We must build our resilience in order to fight the pandemic and work together to further bolster the economy. There is a huge scope for longterm benefits when you look at sustainability.

GOING GREEN IN THE CONSTRUCTION SECTOR HAS MANY BENEFITS SUCH AS FINANCIAL SAVINGS, AND INCREASED TRUST WITHIN THE INVESTOR AND STAKEHOLDER COMMUNITY While Covid-19 has stressed several economies across the globe, it has also presented opportunities in moving towards a stronger future. For instance, research has shown that global emissions from surface transport fell by 36 per cent and by 60 per cent for the aviation industry.

Going green in the construction sector has many benefits such as financial savings, increased trust within the investor and stakeholder community including the general public. We must repeatedly ensure to send out the right kind of message to private players in the construction industry, highlight the benefits to make sure that the ‘new normal’ is green and ensure that the policies are in line with our larger sustainability. We need to ensure the model of produce-use-reuse to support a circular and eco-friendly economy.

Organisations, be it public or private, shall be seen as more trustworthy once the general public witnesses the benefits of going green.

10 September 2020

Daily meeting participants

200m

March 2020

300m

April 2020

10m December 2019

A N A LY S I S

Zooming ahead Video conferencing app Zoom is looking to address security concerns as UAE users top one million, writes David Ndichu

Y

100,000+ schools across 25 countries are using are using Zoom’s platform

ou know a brand has reached peak awareness when it becomes a verb. So, in the Covid-19 era, we don’t video conference, we ‘Zoom’.

While it takes brands years, and sometimes decades, to cultivate sticky brand recognition, it took Zoom just a few short months as it emerged as the de facto communication tool following the outbreak of Covid-19.

In the UAE, Zoom gained at least 100,000 free and paid users within the first week of the lifting of the ban on VoIP. This number reached one million users within a month of the ban being lifted, a staggering 900 per cent growth. By the end of April 2020, the free user sign-up growth in the UAE increased 105 times from January.

To put this growth in context, as of the end of December 2019, the maximum number of daily meeting participants – both free and paid – that Zoom hosted stood at approximately 10 million. In March this year, the app reached more than 200 million daily meeting participants, rising to more than 300 million in April. The video conferencing app’s main selling point is its free 40-minute conference calls with up to 100 attendees. It’s also easy to use – people don’t need a login to access a meeting.

“We are confident that our architecture is built to handle these growing levels of activity,” says Sam Tayan, managing director for Middle East and Africa at Zoom. gulfbusiness.com

The Brief / Technology A N A LY S I S

EDUCATION

Education continuity was one of the main concerns for authorities when Covid-19 struck. Platforms such as Zoom were key in allowing schools to transition to e-learning. Tayan says over 100,000 schools across 25 countries are using the platform for online learning.

On March 16, Zoom lifted the 40-minute meeting limit on free basic accounts for K-12 schools in the UAE. Some regional universities even hosted their graduation ceremonies over Zoom, Tayan says. “We have observed that education sector players in the region are very positive about the ease of using Zoom and the speed with which they can shift towards e-learning without delays and excessive training requirements,” he adds.

SECURITY

Unfortunately, the popularity of such a platform also tends to attract the attention of a more nefarious nature. Indeed, a new verb related to the platform entered the lexicon – Zoombombing – where hackers and internet trolls hijack a teleconferencing session to share lewd or obscene content.

In response, Zoom in April announced a 90-day freeze on releasing new features to focus on fixing privacy and security issues.

Among security features incorporated into the latest update of the platform, Zoom 5.0, was AES 256 GCM encryption, a ‘Security’ icon and the ‘Report a User’ feature. The company also changed default settings for meetings (turning on passwords and waiting rooms by default), tighter Zoom Chat

“WE HAVE MADE SIGNIFICANT PROGRESS DEFINING THE FRAMEWORK AND APPROACH FOR A TRANSPARENCY REPORT”

controls, and more. Zoom also acquired Keybase, which helped it to start building end-to-end encryption for all users (free and paid), and began offering customised data routing by geography.

“On conclusion of the 90-day security plan, we made significant progress defining the framework and approach for a transparency report that details information related to requests Zoom receives for data, records, or content,” says Tayan.

“In the meantime, we have recently released a Government Requests guide and we also updated our privacy policies, mostly to make them easier to understand,” he adds.

Security details will be released in the fiscal Q2 data in its first report later this year, Tayan says.

Zoom has also developed a central bug repository that takes vulnerability reports from bug bounty platforms such as HackerOne, Bugcrowd, and security@zoom.us.

“We established an ongoing review process with daily meetings and improved our coordination with security researchers and third-party assessors. We also hired a head of Vulnerability and Bug Bounty, several additional AppSec engineers, and are in the process of hiring more security engineers, all dedicated to addressing vulnerabilities,” Tayan explains.

Besides, Zoom launched a CISO council composed of 36 CISOs from a variety of industries, including cybersecurity firm SentinelOne, Arizona State University, HSBC, and Sanofi. This council has met four times over the past three months and advised on important matters such as regional data centre selection, encryption, meeting authentication, and key security features, says Tayan.

“Since April 1, we have hosted a total of 13 webinars every Wednesday to provide privacy and security updates to our community. The webinars feature a number of its executives and consultants who take live questions from attendees,” Tayan explains.

ILLUSTRATION: GETTY IMAGES/NADIA BORMOTOVA

HARDWARE

Zoom earlier this year announced it is entering the hardware space, in conjunction with DTEN ME. It launched ‘Zoom for Home’, a new category of integrated software and hardware devices.

Zoom for Home works right out of the box and anyone with a Zoom licence can connect seamlessly, Tayan says.

The features for the all-in-one 27-inch device include three built-in wide-angle HD cameras, an 8-microphone array, a touch display for screen sharing, whiteboarding, annotating, and ideation. Zoom for Home is also compatible with all Zoom Rooms Appliances, including other hardware solutions from Neat and Poly, Tayan explains. gulfbusiness.com

September 2020 11

ILLUSTRATION: GETTY IMAGES/SIMONE GOLOB

The Brief / Future

COMMENT

Rehan Khan Principal consultant for BT and a writer of historical fiction

Dilemma of the new normal Saying ‘no’ more often means we can focus on the priorities that fulfil our purpose

I

n business conversations with executives and managers there seems to be a longing to know what the ‘new normal’ is and for it to fully reveal itself. That way, we all know where the tram lines and guardrails are, in order to get back on track.

Yet what this pandemic period has also done, is allow more thoughtful business leaders to ask existential questions about purpose and priorities in their work and personal lives. Aside from a fanatical few, no sensible person wants to return to a people-burnout culture, which left employees and their families traumatised – all conveniently off-balance sheet externalities.

For individuals who want to be successful at work, but also have a purposeful life away from the office, here lies the dilemma of attainment.

12 September 2020

IF WE DON’T PRIORITISE OUR LIVES, SOMEONE ELSE WILL

For, if we don’t prioritise our lives, someone else will and life will play out in the following way: We work hard and accomplish what we set out to do. And so, in stage one, we are clear about our purpose and priorities and it’s this clarity which leads to our attainment. In stage two, we become known as the fixer, as someone who has a reputation for getting things done, and so are offered further openings and opportunities.

However, these additional openings and opportunities result in stage three, where we have additional requests and strains on our time and energy and our efforts diffuse as we get stretched. By the time we enter stage four, we are seriously distracted from what should have been the biggest priority. The result – we undercut the clarity which resulted in our attainment in the first place, and this leads to burnout and crash.

Greg McKeown, author of Essentialism, says that: “Success can distract us from focusing on the essential things that produce success in the first place.”

The implication here is that we must learn to say ‘no’ more often. Not a bad thing, because it means we can focus on the priorities that fulfil our purpose.

McKeown recommends we ask ourselves: “Which problem do I want?” “What do I want to go big on?”

I’ve had moments in my career where I’ve said no to bosses, because it was taking me away from the central purpose of my role, and so the success of the organisation. I remember one boss who had a ‘special project’ which he wanted me to look into when I had a moment. I didn’t have a moment, unless I was prepared to give up vast hours of my weekend for the next two months. I qualified the ‘opportunity’ out.

My boss wasn’t impressed and found a peer of mine who did take on the ‘challenge’, with the result that my peer was burnt out and then resented the manager for the special project and found an opportunity outside the organisation.

We all know the tremendous cost involved in recruitment and retention, so to bleed out talent in this way is a violation of the commitments we make to our employers.

As the late management thinker Peter Drucker said, “In a few hundred years, when the history of our time will be written from a long-term perspective, it is likely that the most important event historians will see is not technology, not the Internet, not e-commerce. It is an unprecedented change in the human condition. For the first time – literally – substantial and rapidly growing numbers of people have choices. For the first time, they will have to manage themselves. And society is totally unprepared for it.”

We can all prepare by asking ourselves what is vital and necessary in the new normal and then choose to ignore everything else. gulfbusiness.com

The Brief / Technology COMMENT

Sanjay Kumar Sainani SVP and CTO Huawei Global Data Centre Facility Business

The rise of the adaptive data centre

ILLUSTRATION: GETTY IMAGES/JORG GREUEL

With rapid growth in data volumes, data centres have also evolved to offer flexible options to a wide range of customers and industries

T

he intelligent world that is currently being built and is based on 5G, AI, cloud computing, and big data technologies, requires massive data and storage. In the era of digital transformation, enterprises across industries – including the government, finance, energy, and transportation – are feeling the pressure of massive volumes of data and need to cope with the uncertainty of service upgrade.

So how can enterprises cope with the surge in data and related infrastructure required? By using agile, adaptable and intelligent data centres.

For one, today’s advanced modular data centres can significantly simplify equipment room construction. Indeed, the solution radically reduces traditional location requirements for equipment rooms – from floor height to total area and load bearing gulfbusiness.com

75%

less battery space required thanks to new high-density solutions

capacity – effectively shortening installation times and related costs. Crucial testing and even some commissioning can be done under factory conditions, greatly shortening time to market of enterprise digital transformation services as well. Simply put, a data centre can now be easily adapted for any location and space.

With far lower requirements placed on net height, the latest breed of modular data centres do not need a traditional raised floor design. Instead, air conditioner pipes and cables are routed across the top, meaning that equipment can be accommodated in ceiling heights as low as 2.6m, far below the 3m minimum height required by a traditional data centre.

Another important innovation to help enterprises is the low requirement for load bearing. The load bearing of today’s solutions falls below 1000 kg/ sqm, meeting the load-bearing requirements for T3 and T4 data centres as outlined under the TIA-942 certification scheme. Therefore, the power supply system and IT devices can be deployed in the same room and share white space. Similarly, load bearing requirements are slashed as lithium batteries are far lighter than lead-acid equivalents.

Doing away with the need to have a separate power room also represents a big saving on space.

New high-density solutions save more than 75 per cent of the required battery space, compared with lead-acid batteries. That means more revenue-generating IT cabinets can be deployed instead.

Finally, flexible capacity expansion is now becoming possible. Modular data centres now offer a fully modular backup power supply. This brings into reality a truly modular system, where enterprises pay for what they need at that time and expand as and when required. As a result, all budgets are accommodated, and savings can be made on the initial investment.

As data volumes continue to increase, it is reassuring to see that fusion module solutions can be applied to a wide range of customers and industries worldwide. With features of room structure adaptability, flexible expansion, high efficiency, and simple O&M, the advanced modular data centres of today can definitely help enterprises across the Middle East with their business success.

September 2020 13

The Brief / Healthcare

ILLUSTRATION: GETTY IMAGES/WITT UDOMSILP

COMMENT

COMMENT

Ahmed Faiyaz Director, EY

Connecting the dots It is critical for regional healthcare providers to augment, improve and enhance their digital health readiness and footprint

H

ealth systems across the globe have been significantly tested, strained, and impacted by the Covid-19 crisis. Governments have scrambled to introduce guidelines and streamline health system capacity, while trying to improve connectivity and access to critical care to meet the needs of their patient communities.

Prior to the pandemic, regulators, payors, and providers, along with innovative pharma companies and medtech players, were investing in integrating patient data and improving connectivity and interoperability of electronic health records. The purpose was to better connect the dots, improve diagnosis and treatment pathways, facilitate the efficacy of and adherence to drugs, as well as cost containment and ensuring the sustainability of health system financing.

The need to do this has grown in importance as health professionals can treat medical conditions only 14 September 2020

$34bn+

The potential revenue opportunity for healthcare AI by 2025, according to Tractica

when they know more about their patient’s history.

A holistic and patient-centric understanding of an individual’s health and risk profile will deliver better outcomes and help contain costs in the long term, allowing the medical community to deliver population-focused health programmes and evolve to a system that offers ‘healthcare’ rather than ‘sick care’.

We are also now seeing a strong effort to drive investment in digital health services and integrating telehealth services within payor platforms and models of care, further spurred by Covid-19.

For instance, global insurance provider Aetna began telehealth services for its members under a brand called vHealth in 2018. In 2019, the services were extended to include on-site virtual clinics in large corporate organisations, lab testing, and sample collection. This year, vHealth introduced a patient application, which uses virtual primary care as the first point of contact prior to accessing the specialist healthcare system.

For the first half of the year, January–June 2020, the number of members on vHealth went up by 100 per cent, consults delivered per week rose by almost 400 per cent and utilisation grew from 40 per cent to 60 per cent as a result of the increased members.

Clinician-to-clinician telehealth solutions are also witnessing a surge in activity with the aim of improving access to specialists, quality of care, and efficiency.

One Dubai-based platform, Ver2, serves the businessto-business market with its customers including hospitals, clinics, insurance companies, governments, and medical schools. Platforms such as this are helping grow the healthcare workforce capacity.

For healthcare providers with brick-and-mortar infrastructure and with patient volumes and revenues driven by elective health procedures, Covid-19 caused a drastic shift in demand and activity. While hospitals have been busy treating and supporting coronavirus patients, much of outpatient and inpatient medical care, including elective procedures, has drawn to a halt – driven by patient safety reasons and health risks for both the patients and the medical professionals.

In addition, patients have mostly shifted to receiving medical consultations through telehealth platforms, and are expected to continue to do so, particularly when the issue relates to a lower acuity episode and one that can be properly diagnosed, treated, and followed up through the platform.

Moving forward, the hospitals and health facilities networks that make the necessary investments in technology – particularly in AI – will be best placed to translate their investments into success and sustainability. According to market intelligence firm Tractica, the potential revenue opportunity for healthcare AI will exceed $34bn by 2025. While AI gulfbusiness.com

The Brief / Social

is already playing its part by automating routine healthcare-related processes and services in mature and emerging markets, its true benefit will be realised when it is used in drug discovery and research for new vaccines and therapeutics, precision medicine, diagnostic imaging, and genomics.

It is therefore critical for healthcare providers to augment, improve, and enhance their digital health readiness and footprint. To be effective, healthcare providers in the private sector need to: 1. Support and invest in the integration of health records and connected health information networks with other public and private health providers.

2. Invest and augment the IT and telecommunications infrastructure to enable secure patient data transmission.

3. Create a centre of excellence for digital health, with a suite of services.

4. Train and develop health professionals across the system to effectively harness the power of technology and track patient history to deliver tailored care.

5. Adopt and participate in value-based healthcare programmes with other stakeholders and collaborators across the value chain for patients with chronic diseases and disabilities.

6. Use patient data at an aggregated level to enhance physician training and continue medical education programmes, biomedical and clinical innovations, and to develop population wellness and awareness programmes.

7. Re-design clinical and operational workflows to adopt a coordinated model of care that allows for collaboration with stakeholders to provide best-in-class patient services 8. Use AI and deep-learning algorithms to predict and diagnose diseases early on, as well as ensure that new technology augments the work of the clinical workforce.

9. Take a security-first approach to supporting the safety of patient information and electronic records.

10. Adopt applications that adapt and evolve to changing standards and regulations.

The effective adoption and integration of genomics, the internet of medical things, and mobile health apps will give healthcare stakeholders the ability to access new patterns and results in real time.

In addition, having a holistic view of a patient’s medical history will provide medical professionals with the opportunity to prevent and minimise the risk of disease, allow for early interventions, avoid adverse reactions, and offer treatment with much greater precision. gulfbusiness.com

Zaib Shadani Founder and managing director of Shadani Consulting and The Comms Room

COMMENT

Winning customers Four ways that retail brands can leverage the power of social media to win a new generation of consumers

F 60%

of people expect a response within an hour, according to a Twitter survey, which means that brands need to be prepared for realtime engagement

or a country that has an estimated population of 9.8 million, the social media user penetration rates across the UAE are amongst the highest in the world, with 99 per cent of the population using social media for leisure, entertainment, business and staying connected.

This presents a unique opportunity for brands to leverage the power of social media for engagement at every stage of the customer journey – thereby ensuring top of mind recall, strengthening brand loyalty, securing a larger share of customer spend and ultimately, increasing in-store footfall and online sales.

With a legion of well-known brands like Hertz, J.Crew, J.C. Penney and more filing for bankruptcy as a direct result of the impact of Covid-19, retailers cannot ignore the vast potential of social media as a way to engage with customers and push for survival of their brand.

Here are the top four strategies being adopted by global retailers to ensure a positive customer journey and captivate a new online audience.

September 2020 15

The Brief / Social

PHOTO: GETTY IMAGES/CINDY ORD

feeds as a virtual ‘shop front’; all customers have to do is tap the shopping bag icon on an image to reveal more info about the product, with the next step being the option to purchase. Quick, effortless and the perfect way to satisfy impulse shoppers, as well as those seeking at-home convenience.

3. Strengthening brand loyalty through social media insights and market intelligence

1. Bricks-and-mortar to mobile: Omnichannel retail The majority of customers now expect a fully integrated shopping experience that supersedes the traditional brick-and-mortar option, where a brand is available online, with a mobile-friendly site which is also app enabled. The future is omnichannel retailing, which allows customers to browse, shop and buy via a range of options, exceeding the brick-andmortar store and incorporating social media, website, and mobile apps.

Starbucks is a great example of a brand that has embraced the concept of omnichannel retail and become a pioneer in its deployment. Despite hundreds of physical locations in the United States, customers can still face long lines and Starbucks addressed this issue by introducing a key feature on their app that allows customers to order drinks through their mobile phone and pick them up at the counter, allowing people to skip lines and save time.

2. Social media shopping – Making ‘feeds’ into a shoppable experience A major part of using social media for business is about client conversion and sales, and the ‘secret sauce’ that facilitates this goal is the ability for customers to make purchases directly from social media.

There are a combination of ways to do this, which include making the online and social shopping experience easy and seamless and creating social media platforms reminiscent of a catalogue with a clear call to action. But the most effective way is by activating the shopping apps and making your feed ‘shoppable’– on both Instagram and Facebook.

Having a carefully curated social media feed, that also acts like a shoppable catalogue, is a guaranteed way to boost follower engagement and ensure sales.

A front runner in this is watch brand Daniel Wellington, which uses both its Facebook and Instagram 16 September 2020

Starbucks customers can order drinks on their app and pick them up at the counter

Many people think social media for business is about sharing offers, updates and launching new products – but it’s also about increasing loyalty, brand affinity and reworking the messaging to ensure audience interest is captured. Social media enables effective listening and is also one of the greatest market intelligence tools available to a brand. By gathering data from social media and analysing it, brands can get a deeper understanding of consumer behaviour and see what they’re doing right, where they’re falling short and most importantly, what customers want.

While there is a plethora of analytical tools available, one of the easiest and most effective ways to do this is through asking questions. What sort of products do people want? What sort of content do they want to see? Whether through Instagram Stories or question-based posts, picking people’s brains has never been easier. We can see this trend in the feeds of many brands who are customising posts to ask direct questions, be it Sephora asking about your favourite lipstick colour, or Nespresso asking about your favourite coffee flavour. Brands are on a mission to get more customer insights and feedback to ensure a deeper connection with consumers.

4. Customer service – real-time engagement via social media

HAVING A CAREFULLY CURATED SOCIAL MEDIA FEED IS A GUARANTEED WAY TO BOOST FOLLOWER ENGAGEMENT AND ENSURE SALES

Social media has now evolved into a customer service channel, with a customer service-related query ranking amongst the top three reasons why someone reaches out to a brand. According to a Twitter survey, 60 per cent of people expect a response within an hour, which means that brands need to be prepared for real-time engagement.

The customer experience, especially when it’s negative, plays a critical role in the success of any business because it directly impacts a brand’s relationship with the customer, their brand loyalty, positive advocacy and future sales spend. While no brand would ignore a customer in a physical store, survey results indicate that brands only respond to half of online messages. With a lack of response resulting in a 40+ per cent decrease in customer advocacy, and over 50 per cent of consumers saying that they would boycott a brand due to a poor response on social media, companies cannot afford to ignore even a single comment. gulfbusiness.com

ILLUSTRATION: GETTY IMAGES/OCTOPUS182

The Brief / F&B

A N A LY S I S

Little luxuries

Holding onto small culinary pleasures amid lockdowns and social distancing measures is helping people worldwide cope with the pandemic

B

efore the pandemic, Levi Fedley would bike to one of Melbourne’s famous laneway cafes, sit down with the perfect cup of coffee and watch the world go by.

Now, with Australia’s second biggest city back in lockdown, takeaway is the only option. It’s now a hurried matter of picking it up without touching anyone or anything, and a speedy return home. But his daily long black – an espresso topped up with hot water – is even more essential.

Around the world, people are grasping onto their sacrosanct daily pleasures, moments of near normality in an otherwise upended world. Although cafés in

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commuter areas and city centres are suffering while workers stay home, consumers are finding their fix in local neighbourhoods.

Cutting out fancy, artisanal coffees to save money has been a cliché of budgeting advice for a decade. Drop the daily cup, the advice goes, you won’t miss it and over the course of the year just watch your bank balance tick up. The savings would be relatively minimal, but what this advice also misses is just how much people around the world value their daily pleasures. “It is keeping people sane,” said Fedley, the Melbourne coffee drinker. “I think there are far more things to cut back on before you start questioning coffee habits.”

After an initial devastating hit, customers are also returning to the big chains.

US giants Starbucks and McDonald’s both said that same-store sales turned positive in July.

“What customers are looking for right now are experiences that are safe, familiar and convenient,” Starbucks CEO Kevin Johnson told Bloomberg TV. “That’s what’s going to drive this recovery,” he said, predicting that US sales would be back to preCovid levels by March.

What’s more, while transactions are down, average amount spent per visit is actually increasing, Johnson said.

At-home brewing saves money – an A$60 ($43) bag from bespoke coffee roaster St Ali works out at roughly A$0.42 per shot, compared with the A$5 you’d pay inside. It can’t replicate the experience.

In San Diego, California, a burrito is the perfect end to a long day of surfing or swimming. Roberto’s Taco Shop serves its popular California burrito – filled with french fries, carne asada, sour cream and cheddar cheese – at a number of locations along the coast. Thanks to loyal customers, business has remained steady throughout the pandemic, and the restaurant didn’t have to lay off workers, said co-owner Reynaldo Robledo, the son of the restaurant’s founder. Those customers include Grace Furnari, who has been twice already since she moved back to the area in July. “Roberto’s feels like a luxury because it gives me a break from cooking at home – and a good reason to leave the house,” she said.

In tropical Singapore, the local obsession is bubble tea: sweet, milky tea shaken with ice and chewy tapioca balls. As the city prepared to go back into lockdown in late April, long queues formed across the island with locals determined to get that final hit.

Justin Teh, 48, co-owns the Forbidden Tea shop in Marymount, a green, familyfriendly part of the city. He said they saw a renewed burst in demand when they were allowed to open up in June. While things are now calmer, they are still seeing a steady flow of customers, he said.

“Because we can’t travel right now, there’s a sense of a void needing to be filled, and for some people, little luxuries like bubble tea, hot pots, staycations hit the spot,” Teh said.

“It’s the next best thing you can do.”

Bloomberg September 2020 17

The Brief / Infographics

Economic enclaves connecting the world

“Freezones are crucial to Dubai’s economy, contributing 33 per cent to its GDP at Dhs135bn.

Today, we approved Dubai’s Geo-Economic Map 2030 and among its goals is to increase this contribution to Dhs250bn”

Special economic zones offer fiscal and regulatory incentives to businesses, facilitating economic growth, industrial transformation and inward investment

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Dubai Executive Council

UAE leads the pack Special economic zones have been present in the Middle East since the 1990s with mixed success. The UAE has the largest number of free zones in the GCC Number of SEZs GDP (2019)

2

3

4

5

10

10

16

47

Qatar

Bahrain

Kuwait

Oman

Saudi Arabia

Egypt

Jordan

UAE

$134.8bn*

$77bn

$793bn

$303.2bn

$43.7bn

$421.1bn

$183.5bn

$38.6bn

*2018

Room for growth

Growth driver

According to UNCTAD and PwC estimates, many SEZs haven’t reached their full potential

GLOBALLY 35% Fully/sufficiently utilised

IN THE GULF 25% Fully/sufficiently utilised

18 September 2020

Only 2

GCC SEZs have developed more than 75 per cent of their total reserved area – Jafza and Hamriyah, both in the UAE

Freezones are essential for the UAE’s economy

Dhs225.5bn

Value of exports from the UAE’s freezones in 2017, a growth of 6.6 per cent from the previous year

DUBAI’S FOREIGN TRADE

43.2%

(Dhs434bn) From freezones Dhs1.37 trillion Total

19.5%

The share of freezone exports among the country’s total exports in 2017

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Linking the world Number of SEZs by region/group and the country with the biggest share

TRANSITION ECONOMIES

237

In 2019

EAST ASIA

Russia

2,645

54.9% (130)

NORTH AMERICA

262 Rest of the region

US

45.1%

100% (262)

EUROPE

(107)

105 Turkey

49%

Poland

20%

Rest of the region

(102)

China

96.1%

80%

(2,543)

(84)

(21)

Rest of the region

Rest of the region

51%

3.9%

(106)

Kenya

25.7%

(102)

WEST ASIA

208

(61)

LATIN AMERICA AND THE CARIBBEAN

Rest of the region

486

(176)

74.3%

AFRICA

Dominican Republic

India

Philippines

(373)

(528)

71.6%

81.8%

237

15% (73)

SOUTH EAST ASIA

Rest of the region

737

18.2% (83)

Rest of the region

Rest of the region

85% (413)

Branching out

SEZs have boomed in the last two decades Number of economies with SEZs

Countries like Japan, Singapore and China have been increasingly involved in economic zone development outside their own territories

Number of SEZs

300

~5,400

6000

250 200 150

130

147

93

100

0

4000

3,500

29 79 1975

(209)

456

Mushrooming up

50

28.4%

SOUTH ASIA

47

2000

845

176 1986

1997

2006

2018

0

$7bn

The amount Russia is investing in the Russian Industrial Zone in the Suez Canal Economic Zone in Egypt.

Expected to be finalised by 2031, it will provide some 35,000 direct and indirect jobs

EXPANDING DRAGON Distribution of China’s 20 verified overseas cooperation zones in 2018 South Asia Central Asia Hungary

12

Japanese ‘industrial townships’ are being built in India as part of the Japan–India investment promotion partnership, which aims to encourage Japanese SME investment in India

Africa Russian Federation South-East Asia 0

2

4

6

SOURCE: PWC’S RE-BIRTH OF SPECIAL ECONOMIC ZONES IN THE GCC; UAE CENTRAL BANK; UNCTAD’S WORLD INVESTMENT REPORT 2019 SPECIAL ECONOMIC ZONES

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September 2020 19

The Brief / Lightbox

Lebanese architect Karina Sukkar stands on the balcony of her damaged apartment overlooking the ravaged port of Lebanon’s capital Beirut on August 9, 2020. A colossal explosion at the port, which claimed over 175 lives, devastated large parts of Beirut and was felt as far as the island of Cyprus 20 September 2020

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September 2020 21

PHOTO: PATRICK BAZ/AFP VIA GETTY IMAGES

BY AARTI NAGRAJ

22 September 2020

PHOTO: MOX SANTOS

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COVER STORY / RIZWAN SAJAN

NO WAY BUT UP In an exclusive interview, chairman of Dubai’s Danube Group, Rizwan Sajan, outlines why he is confident about a ‘V’ shaped recovery in the UAE, how his company has navigated the Covid-19 crisis and what lies ahead

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September 2020 23

COVER STORY / RIZWAN SAJAN

IT IS TOUGH TO CATCH RIZWAN SAJAN WITHOUT A SMILE. 24 September 2020

A

s he admits, the chairman and founder of Dubaibased construction and property conglomerate Danube Group is an optimist by nature, and hence it is easy to fathom why he belives that the UAE’s economy will recover rapidly from the Covid-19 crisis. “The UAE is set to witness one of the fastest ‘V’ shaped recoveries in the world from the Covid-19 pandemic due to a number of factors including the way the authorities handled the crisis from day one,” he insists, in a bold prediction. The Dubai-based businessman is confident that before the end of the second quarter of 2021, the situation will bounce back to normal, with the local economy back on track for strong growth.

While one could attribute his sanguine economic outlook to his personality, Sajan stresses that he has solid reasons to back his projection. “If you look back, the UAE recovered faster compared to other economies from all the previous crises they faced in the last three decades, be it the Gulf war or the global financial crisis. And there are practical reasons for this.

The first and foremost is the strong and visionary leadership of the country. Also, from the beginning, the UAE has invested in its future, be it hard or soft infrastructure, technology, systems, processes, people and the global connectivity that helps it to recover fast.

It is a future-ready country,” he explains.

But the world remains very much in the throes of the Covid-19 crisis, even as governments and businesses across the globe scramble to adapt and adjust to the changes the pandemic has brought, seemingly overnight. In June, the International Monetary Fund projected that the crisis will push the global economy into the “worst recession since the great depression, surpassing that seen during the global financial crisis a decade ago”. Regionally as well, the GCC states – including the UAE – have seen an exodus of expatriate workers, which in turn is anticipated to adversely affect the other sectors of the economy.

Sajan admits that the magnitude of the Covid-19 pandemic surpasses the previous crises due to the growing global death toll, the rise in infections, as well as job and business losses. However, he emphasises that people must remember that while the situation is grim, Covid-19 is a public health crisis that will pass.

In a detailed interview, he explains why he is so positive about the country’s recovery.

You appear extremely optimistic about the UAE economy’s postCovid-19 ‘V’ shaped recovery. Could you explain why and how?

There are a number of reasons why I am so optimistic. There are internal and external factors that are going to work for the recovery of the UAE and Dubai.

Firstly, one should not forget that it is a short-term public health crisis, which will soon become part of history. The way the UAE is winning its war against the virus, we expect the country to become Covid-19-free very soon. If that happens, all the exhibitions, conferences and business events will restart and the businesses will start to bounce back into profitability.

The Indian Premier League (IPL) is a very good case in point and will attract many visitors to the UAE – not only from India, but from a number of countries. The IPL is poised to give the UAE economy a massive boost with higher occupancy in hotels and increased consumption at restaurants. gulfbusiness.com

“THE UAE IS SET TO WITNESS ONE OF THE FASTEST ‘V’ SHAPED RECOVERIES IN THE WORLD FROM THE COVID-19 PANDEMIC”

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September 2020 25

Also, with the pandemic continuing to spread across the world, tourists are looking for ‘safe-haven’ destinations. Right now, everyone wants to come to Dubai and hence business will be much higher in October, November and December.

Along with tourists, people in countries where the pandemic is still growing are also looking for safe places to relocate to. The UAE is well-positioned to benefit from this trend.

The country could attract a large number of wealthy people – businessmen, professionals and retirees – which will accelerate the pace of recovery and economic growth.

We anticipate a major influx of minorities from India, especially those who can afford to finance their stay in the UAE. They might shift to the UAE with their investments. If this happens in a big way, all the vacant homes won’t be enough to host them. This will trigger a massive demand for new homes.

In general, this is how I see the recovery.

However, each economic sector will react in its own way.

Let’s talk about aviation and tourism – the two most important sectors that contribute to the growth of Dubai’s economy, which have been hit hard by the crisis. How do you see them recovering?

Aviation and tourism are the biggest contributors to Dubai’s economy. These were also the very first sectors to be severely affected by the coronavirus pandemic, due to the ban on international flights effective from March 25, 2020. The move halted international passenger movement and as a result, hotels had to close doors and send their staff on unpaid leaves.

Most tourism attractions in Dubai have gradually reopened since June and the emirate is currently seeing a surge in visitors to its shopping malls, family entertainment centres and theme parks, with the region’s biggest summer extravaganza – Dubai Summer Surprises – driving domestic tourism.

With Dubai also reopening to tourists from July, visitors have started streaming in to enjoy the city’s sunshine, clean beaches, shopping malls, luxury hotels and amusement parks.

Before the end of the year, the business events season will begin.

A number of exhibitions and conferences will start attracting businessmen and professionals to Dubai.

The local real estate and construction sectors are grappling with massive oversupply coupled with weak demand. What’s the way ahead?

Real estate and construction are major drivers of economic growth in Dubai and despite the Covid-19 crisis, these two sectors will continue to attract foreign buyers and investors. Here’s why.

The current oversupply situation in the residential real estate is 26 September 2020

of a temporary nature. The gradual influx of people into the city will absorb the existing housing inventories before the World Expo next year, when demand will start picking up.

In general, smaller properties still fetch annual returns of 6 to 7 per cent – one of the highest rates in the world. While the Covid crisis might have reduced the rates for certain properties to 4-5 per cent for a short while, it is still better than most developed real estate markets. So, despite the crisis, properties remain a strong investment.

Let’s take a look at the mortgage rates. The current mortgage rate is very low at roughly 2.5 per cent. So, if you are getting a rental income of about 7 per cent, then after paying the 20 per cent down payment, you can complete your EMIs [equated monthly installments]within 14 years without paying anything out of your pocket. gulfbusiness.com

COVER STORY / RIZWAN SAJAN

Tips for entrepreneurs

1

Understand your business before you start. For instance, in case you plan to set up a restaurant, work in one, know all the nitty-gritties associated with it and then start your business

2 3

Provide value for money to your customers

Ensure integrity at all times and never overpromise to your customer

4

Count your losses before you start – can you manage if things go bad?

estimate, this translates to an annual spend ranging from Dhs4.5bn to Dhs10bn on air tickets, hotel booking, siteseeing, food and beverage, transport and entertainment.

Part of that money is now being spent in the domestic market on food and beverage, home furnishings, upgrading electronic gadgets and household appliances. So, shops and restaurants across the country will start making money in the fourth quarter once tourism picks up, giving a major boost to the retail sector.

What is your outlook for the shipping and logistics sectors?

With the reopening of the economies, the movement of goods has also picked up pace, reflected in the shipping and freight rates.

The November freight rate at Jebel Ali port is poised to jump 400 per cent (four-fold) to $1,000 from $250 in October this year. This reflects how quickly things are picking up.

Dubai’s non-oil foreign trade values rose nearly 6 per cent to reach Dhs1.02 trillion during the first nine months of 2019, while volumes also grew by 22 per cent to reach 83 million tonnes during the period. With a ‘V’ shaped recovery, we project the shipping movements will resume to these levels by the end of this year due to growing consumption across the Middle East, Asia and Africa.

With people going back to work and companies’ cash-flows coming back to normalcy, things will surely bounce back due to the rise in consumption.

What role has the banking and finance industry played in the crisis?

Also, high asset price appreciation is another factor that investors benefit from in Dubai. The market is the best regulated real estate market in the Middle East, with investors’ interests well protected.

The outlook for the construction sector, which is linked to oil prices, remains good. If oil prices exceed the break-even price barrier, local governments will invest in infrastructure and housing, which in turn will accelerate economic growth. Oil is trading at about $45 today, which is good news. Once the global economic situation improves, crude oil prices will go up further, which will help increase the current account surplus. So we have reasons to be optimistic.

The worst for us in the GCC is over. With the reopening of the economies, construction work is also picking up. So we are excited about the prospects.

Moving to the retail sector, another major industry that has been hit by the crisis, how do you see the recovery?

The retail sector, which is largely reliant on international and regional tourism, is set to recover fast once tourists start coming to Dubai. However, since most UAE residents are not travelling abroad, they are spending within the country. Dubai’s shopping malls are abuzz with activities, with families spending more time in malls than ever before.

An earlier UAE government survey had found that the country’s outbound tourism spend is expected to grow to 3.5 million trips involving $24bn by 2025. Due to Covid-19, most families are avoiding travel. A family of four usually spends around Dhs15,000 to Dhs20,000 on average during a summer holiday. Every year, around 300,000 to 500,000 families travel during the summer and winter holidays. Using a conservative

Soon after the crisis hit, the UAE government announced a liquidity buffer to banks to help consumers and businesses in distress.

The UAE Central Bank has provided a stimulus package worth Dhs256bn, which is helping banks and financial institutions manage the situation.

In their half-yearly results, all the UAE banks have reported profits. While profit declines were recorded by some lenders, the majority of them reported growth in net profits, despite impairments.

Now with the situation stabilising, banks could look into supporting small and medium enterprises (SMEs) with loans and advances.

Those businesses, which have survived the Covid-19 ‘stress test’, have all proven their resilience and are more agile and sustainable.

With bank financing, they could now expand their businesses further, and also start hiring people.

Do you think these factors are adequate to jumpstart the economy?

From a regulatory perspective, do you recommend any decisions that can further support the recovery process?

There are a number of initiatives that the government could undertake that might help the economy recover faster. The UAE could utilise its current competitive advantage of being a ‘safe haven’ by reviewing and reforming the visa regime to allow more foreigners who would like to move into the UAE for more than six months.

Introduction of a six-month and a one-year visa could help in attracting international investors to stay in the UAE. If this could be made available the same way a three-month visit visa is issued, the UAE will see a massive influx of residents and investors, who might also buy homes to stay and do business.

This would also be a good time to look at reducing the government fees for processing documents.

It takes more than two to three weeks and costs over Dhs7,000 (excluding the

“A LEADER SHOULD FACE THE CRISIS FROM THE FRONT AND SHOULD NOT GO INTO A SHELL”

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September 2020 27

UAE-Israel deal impact

bank guarantee) to hire an employee and ‘OUT OF THE BOX’ to complete all the services, including the Established by Sajan in Dubai in 1993 as a labour permits, employment contracts, small trading outfit, Danube Building Mate“The UAE-Israel deal is a bold step entry permits, medical, Emirates ID, medrials has since expanded and diversified in the right direction. It is guided ical insurance and visa stamping process. into a construction behemoth, with more by pragmatism to create a win-win These things could be streamlined with than 10 businesses and brands in the GCC situation for all. Normalising relations reduced costs. and an average annual turnover exceeding with Israel will also help the UAE to The government could also once again $1.3bn. The privately-held group, whose influence Israel to protect the rights reduce the real estate registration fee to 2 divisions span interiors companies Danube of the Palestinian people and their per cent from the current 4 per cent. The fee Home and Milano as well as real estate aspirations of an independent state” was doubled in 2014 to 4 per cent to stop the development business Danube Properties, practice of ‘flipping’ properties. Right now, employs 3,600 people across 10 countries since speculative buyers have disappeared in Asia, Europe and Africa. from the market, it is a good time to revisit the fees.

In April, in a move that was widely reported in the region, Sajan Lastly, banks could provide additional funding to SMEs to help announced that the company will not lay off any of its employees them grow. due to the Covid crisis. He confirms that the company has stuck to This will help them expand business and grow their workforce, that policy so far – mainly to maintain motivation and ensure that potentially rehiring those who were laid off to further support the staff feel appreciated. economy.

“During the lockdown, we had reduced employees’ salary by 30 per cent. From the month of June, the salary has gone back to preCovid-19 level – at 100 per cent. I have also assured my employees that if the business losses that we incurred can be recovered to a certain level, I will repay the 30 per cent that was cut [in April and possible ‘second wave’ of infections in the UAE could May] in full back to them,” Sajan says. “Everybody is trying hard rattle the short-term economic prospects, but Sajan and hopefully we will manage their expectations,” he adds. is insistent that the longer-term outlook will not be He points out that during a crisis, the most important thing for affected. “The coronavirus situation will not affect leaders to do is to keep their people motivated. “A leader should face the long-term competitive advantage of the UAE. In all likelihood, the crisis from the front and should not go into a shell. Even during it is a stress test for various economic sectors and businesses. Those the lockdown, I came to the office every single day since I had an who have attained economic sustainability will come back strongly. official pass. This is my way of driving and motivating my employThis is a wake-up call for businesses that did not attain sustainabilees,” he explains, adding he is “blessed to have a dedicated team of ity,” he says.

A

28 September 2020

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COVER STORY / RIZWAN SAJAN

“I HAVE ALSO ASSURED MY EMPLOYEES THAT IF THE BUSINESS LOSSES THAT WE INCURRED CAN BE RECOVERED TO A CERTAIN LEVEL, I WILL REPAY THE 30 PER CENT THAT WAS CUT [IN APRIL AND MAY] IN FULL BACK TO THEM”

loyal directors, heads of departments and many other staff who are driving the organisation today”.

From a business perspective, what helped was also “thinking out of the box” to meet the demands in the market. “We started a disinfection division where we started selling machines to disinfect spaces as well as masks and disinfection tunnels that we imported. This led to big revenues for the company,” reveals Sajan.

Despite the crisis, the company is expecting its overall business figures to remain positive for 2020.

“During the first half of the year – that included two months of complete shutdown, in some parts of our business, we have actually done better than last year’s first half. In other parts of the business, we were not so lucky. However, it balanced out well. In the remaining months for 2020, we might do better and the overall full year revenues could be better than what we had expected at the start of the Covid crisis,” he projects.

CONSOLIDATION ON THE CARDS Looking ahead, Danube, which has been on an expansion spree during the last few years, will now focus on consolidation. “For the next couple of years, we don’t have any expansion plans. We need to consolidate [the business] and ensure that we make the best out of what we have. We will wait for the global economy to really improve before we expand,” discloses Sajan.

“Once the dust from the Covid-19 crisis settles, we will look at the markets with a fresh eye and see the new opportunities. There will be re-adjustments and realignments, for sure. I know that opportunities not only come from the good days, they also come from crises. One has to have the foresight to tap the opportunities passing by. We will

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keep a close watch on the changing economic landscape and make calls when we are sure and comfortable.”

Danube Properties, which launched a Dhs400m project in Dubai called Olivz in March – and was 80 per cent sold out as of July – will also concentrate on existing projects for now. “We are not looking at any new launches unless we get a JV deal – where it is someone else’s land and money and we only do the marketing for them.” However, the company’s franchise plan will continue as is, he adds. “There’s no investment in that – we only have to set up the company for them and lend our expertise to that company – that will continue.”

Longer-term, Danube will focus on its three core businesses – building materials, interiors and real estate development. “We will focus on growing bigger in what we do,” he says.

“As a businessman, I would want to continue what I am doing as long as I’m healthy and I would want to take this company further and make sure that it grows. The best thing is that my brother [Anis Sajan], son [Adel Sajan] and nephew [Azhar Sajan] are all involved with running the business. So I’m confident that the next generation is sorted. Also, we have harmony between us and so we are very confident that we will take Danube to a different level,” he says.

And what does Sajan count as his biggest achievement so far?

“The way I have brought the company to this level is something I had never anticipated. Today when you talk about Danube, people believe in the brand across all our verticals, they are happy with us.

This does not happen unless those working for me are convinced that we have to deal with our customers with integrity – so they don’t promise what we cannot deliver. And this is my biggest achievement, because after 25 years, you look back and this is what stands out.”

September 2020 29

BRAND VIEW

Phi Trends: How Covid-19 has accelerated healthtech The crisis has opened up many growth avenues for healthtech ventures, which are attracting a significant amount of investor interest, opines entrepreneur and investor Shailesh Dash, who shares his market perspective in this monthly column

T

“Covid-19 is reshaping healthcare through technology (healthtech), which is increasingly becoming an integral part of the care delivery model”

he Covid-19 pandemic is changare strongly advocating the use of digital teching the way the healthcare industry nologies to confront Covid-19 and address a functions, especially its standard wide range of pandemic-related issues. Such operating procedures and the strong sentiment, although triggered by the services it offers. Most notably, Covid-19 is pandemic, could very well be indicative of a reshaping healthcare through technology trend that is here to stay. (healthtech), which is increasingly becoming It would not be wrong to say at this point an integral part of the care delivery model. The that many of the developments in the various outbreak has not only presented a new opportech sectors which were taking place over the tunity for innovators to create faster, smarter, last decade didn’t get the kind of response and more accurate predictive healthcare that 90 days of this year led them to receive. tools for diagnosis and treatment, but has The growth in some of these sectors, such also amplified the necessity for healthcare as healthtech, are unimaginable in normal cirorganisations to scale and adjust to the new cumstances – for example remote healthcare reality. Recent developments in the arenas of visits are estimated to have grown by more telehealth, artificial intelligence (AI), machine than 4,000 per cent. learning (ML), virtual consultations, robotics developments have prompted a strong surge In such a scenario, several global healthand big data/data tracking are helping tackle of interest in the healthtech sector. The pancare companies are attracting investor the Covid-19 outbreak and flatten the infecdemic has further aggravated this interest, interest by fostering technology as a core tion curve. Not just doctors, clinicians and with the first six months of 2020 raking in a part of their business strategy. Similarly, new researchers, but even governments across record $6.3bn in new investments. Moreoand innovative digital healthcare startups the globe are increasingly turning to new-age ver, several tech giants including the likes of are raising record amounts in fresh funding technologies for R&D, to deliver services and Amazon, Apple, Google and Microsoft have to expand their solutions and offerings. The cater to a rapidly growing pool of patients. pivoted to focus on technologies and services crisis has opened up many growth avenues Over the years, the concept of digital health (for both enterprise and community) to battle for healthtech ventures, which are attracting has evolved from merely eliciting curiosity to Covid-19. Simultaneously, many governments a significant amount of investor interest. being explored as a research tool, and finally evolving into a Performance of top healthtech stocks widely-adopted, mainstream clinical tool. Smart technoloCompany Market Cap Revenue EPS EV/ PB Stock Price 52-Week gies have made it possible to Name (USD bn)* (USD mn) (USD) Sales* Ratio* (USD)* High Low overcome the shortcomings of Livongo Health** 11.72 170.2 -1.07 42.51 19.70 118.34 150.00 15.12 traditional healthcare models t h ro u g h g ro u n d b re a k i n g Teladoc Health** 15.31 553.3 -1.10 20.64 11.67 187.50 253.00 54.58 curative discoveries, and by Phreesia 1.12 124.8 -10.60 8.37 11.51 29.84 34.85 16.01 enhancing the delivery of serLemonade Inc. 3.58 67.3 NA 42.37 13.62 63.22 96.51 49.02 vices. Accordingly, digital opportunities within remote Health Catalyst 1.24 154.9 -2.81 6.36 5.40 31.33 44.98 17.48 consultations and diagnostics, Twist Bioscience Corp.

2.96 54.4 -3.63 34.77 10.38 66.30 71.71 18.52 and innovations in the fields of telemedicine, drugs and vaccine *Note: Data as of August 14, 2020, development are increasingly **Teladoc has now acquired Livongo, an opportunity to invest in the new entity SOURCE: BLOOMBERG, YAHOO FINANCE taking centre stage. Such

“As global economies grapple with the pandemic, rapid technological innovation is hoped to bring the world one step closer to overcoming Covid-19”

The equity market is no exception to this trend, and healthcare stocks that have integrated technology to develop innovative treatment outcomes have been witnessing incredible growth, outperforming peers within the healthcare space. For instance, Livongo Health, a provider of remote monitoring solutions driven through employer and payer distribution, has developed a technology that has cut annual healthcare costs by at least $1,908 for its clients. The company registered an earnings surprise of 175 per cent in Q1 2020, with its stock up roughly 400 per cent since the beginning of 2020. A surge in telemedicine has driven a similar uptick in Teladoc, which has benefited from the growing adoption of virtual care. Its strong revenues (up 85 per cent yearon-year) reported in Q2 2020 was far higher than analyst estimates, driving its stock northwards (up 164 per cent year-to-date), despite reporting losses. Teladoc has now agreed to acquire Livongo for $18.5bn, creating the largest holistic virtual health entity worth $38bn.

Shailesh Dash

Phreesia is another such company, which shifted its focus to support the transition to virtual care amid the pandemic and launched a Covid-19 screening module that triages patients’ risk factors to avoid infection risk.

While near-term prospects remain uncertain, strong fundamentals sustain the appeal of this stock. Similarly, Health Catalyst is another strong contender in the healthtech market.

The company’s revenues are estimated to grow from $24bn in 2019 to roughly $77.6bn in 2020, buoyed by robust internal factors.

Lemonade, which has integrated new-age technology to appeal to the modern generation and recently ventured into health insurance offerings, stands apart from competitors due to its high-tech app ensuring speed and efficiency in its segment, with

low-price subscriptions attracting higher consumer adoption and retention. Having listed in July 2020, Lemonade’s stock rose 139 per cent on its first trading day, marking the best IPO debut of the year (so far) and demonstrating the company’s strong investor appeal. Its stock price has risen by around 51 per cent since the initial public listing.

Lastly, Twist Bioscience is also likely to play an important role in the global Covid-19 response. The company reported revenues of $21.2m in Q2 2020, which was more than 50 per cent higher than the estimates. This has led to a rise of roughly 216.4 per cent in its stock price since the beginning of 2020.

An important point to note - it is prudent for investors to maintain appropriate cash positions at all times to capitalise on any downside in recommended stocks with a medium to long-term time horizon.

As global economies grapple with the pandemic, rapid technological innovation is hoped to bring the world one step closer to overcoming Covid-19. Thus, it has offered bitter-sweet opportunities for technology developers as creativity inspired by the crisis is likely to drive further innovation in the healthtech/medtech space.

The infrastructure and resources are already in place through technological deployment for many companies, but what the world now needs is a cohesive implementation of tech strategies, both by the private and the public stakeholders, as the best way forward to tackle the health crisis.

Disclaimer: This column is purely for academic and educational purposes. Nothing mentioned here should be taken as solicitation to trade or a recommendation of a specific trade. The author has direct exposure in recommended stocks.

FEATURES / CYBERSECURITY

COVID-19 WORSENS CORPORATE CYBERSECURITY WOES AS ORGANISATIONS STRUG GLE TO

SPREAD THE SECURITY UMBRELLA

TO REMOTE WORKERS, EXPERTS

URGE RENEWED COMMITMENT TO

CYBERSECURITY BEST PRACTICES

32 September 2020

gulfbusiness.com

FEATURES / CYBERSECURITY

DAVID

NDICHU

PHOTO: GETTY IMAGES/SEAN GLADWELL

BY

gulfbusiness.com

September 2020 33

A FEATURES / CYBERSECURITY

n authentic-looking email arrives with the subject line, Covid-19. The sender appears to be the US Centre for Disease Control and Prevention, a trustworthy name in healthcare.

There’s either an attachment or a link that promises “further information” or such.

Such emails seem completely genuine to the uninformed eye.

Only with deeper analysis does a malware payload hiding behind the link or attachment become apparent, capable of giving hackers access to the organisation’s network and placing the company’s entire data at risk.

Such cybersecurity nightmare scenarios have confronted many organisations in the wake of Covid-19.

Cybercriminals went to work in the days and weeks following the pandemic, creating bogus domains, which they used to send phishing emails promoting either fake treatments for the coronavirus or some other prevention protocols, observes Tamer El Refaey, chief cyber security strategist, Emerging Markets, Micro Focus.

The result is that employees, desperate to get their hands on critical health information, fell for Covid-19 related phishing attacks.

As the Covid situation evolved, the threat landscape also kept pace. Threat actors are carefully following each development around the coronavirus and launching attacks that closely mimic new incoming information, observes Emile Abou Saleh, regional director, Middle East and Africa at Proofpoint.

“The large number of remote workers across the country presents an inviting target for cybercriminals to pursue in an attempt to compromise victims’ systems and gain access to corporate resources and applications,” he says.

34 September 2020

WORK FROM HOME The idea of working from home is appealing and has been touted as a panacea for many ills that plague urban living, such as long commutes, pollution and overcrowding.

However, hastily configured remote work policies present a myriad of cybersecurity challenges.

“Simply put, most organisations were not ready to handle the Covid-enforced bringyour-own-device (BYOD) circumstances,” says Saleh.

“The pandemic hastily shifted a large number of employees to remote work, many for the first time. For many users, there will be protocols, online tools, and communications they will not be familiar with, and it’s this lack of familiarity that threat actors will try to capitalise on,” he adds.

Data models many organisations used to identify abnormal behaviour were based on employees being on-premise. An employee signing in physically in the office and accessing the network from within the office would be considered normal behaviour. This safeguard disappears when there is no longer a physical sign-in, Refaey observes.

Many organisations were also forced to switch to the cloud so their employees could access corporate apps remotely. “Unfortunately, with cloud comes risks or challenges of securing data off-premise,” says Refaey.

Businesses also had to develop numerous applications on the go, and carry out a lot of changes to their applications to ensure that the customer experience was not impacted.

“Such a high number of application releases imposes security challenges in fortifying them,” explains Refaey.

Within the office environment, the IT department can impose security best practises such as patching and regular software updates. This becomes complicated with remote employees as IT cannot control the process. Instead, they have to request staff to connect to the network at a certain time so they can push patches and updates.

“Such a situation can never be 100 per cent fool-proof, and leaves many computer systems vulnerable,” says Refaey.

Another danger lurks with the blurring of the line between the professional and the personal. Instead of the dedicated machines for work, personal computers also double down as entertainment centres gulfbusiness.com

FEATURES / CYBERSECURITY

“DATA MODELS MANY ORGANISATIONS OPERATE FROM WERE BUILT AROUND IDENTIFYING ABNORMAL BEHAVIOUR WHEN EMPLOYEES ARE ON-PREMISE”

where downloading of movies and games is common – activities associated with risky online behaviours.

Connecting to the internet from a corporate network involves scanning websites for malware. Then, the data has to go through different enterprise security controls. “All these controls disappear when employees are at home, and this makes the life of attackers easier when trying to compromise corporate assets,” Refaey adds.

HUMAN FIREWALL It is a cybersecurity truism that employees are the weakest link in any IT structure.

This axiom has gained greater currency with working-from-home environments.

“Cybercriminals don’t target technical vulnerabilities; they target human weakness – the distracted user who clicks on an email attachment, the eager customer who fills in credentials to claim a fake offer, a loyal employee who follows directions to wire money from a criminal impersonating their CEO,” states Proofpoint’s Saleh.

The only security strategy that will successfully combat today’s advanced attacks is one that focuses on protecting people.

“We recommend that organisations prioritise a people-centric approach to security that protects all parties (their employees, customers, and business partners) against these threats, including layered defences at the network edge, email gateway – in the cloud and at the endpoint – along with strong user education,” he says.

An ill-informed employee tends to pose a great risk to an organisation’s security, agrees Amir Kanaan, managing director for the Middle East, Turkey and Africa at Kaspersky. “No matter how advanced the organisation’s security technology is, a careless employee can always put the company’s infrastructure at risk,” he says.

In addition to an increase in phishing emails, another emerging threat involves attacks on open Remote Desktop Protocols (RDPs) ports. Essentially, this is an attack on remote access software used by employees when they connect from their homes.

“If these attacks are successful, they give cyber criminals unauthorised access to an organisation’s sensitive information or intellectual property,” warns Kanaan.

Lacking the resources in-house to safeguard their assets, many businesses turned to their technology providers for answers gulfbusiness.com

Tamer El Refaey, chief cybersecurity strategist, Emerging Markets, Micro Focus

On high alert Four of five organisations in the UAE faced at least one cyberattack in 2019 82%

of organisations in the UAE faced at least one cyberattack

51%

DIFFERENT METHODS Account compromise

of surveyed companies reported multiple incidents

28% Credential phishing 20% Insider threats 17% SOURCE: PROOFPOINT SURVEY, WHICH POLLED 150 CSOS/CISOS IN THE UAE

when Covid-19 struck.

As a software company with specialised cybersecurity tools, Micro Focus has a wide set of applications and software that can help customers in tricky cyber security situations, says Refaey. “When Covid-19 struck, we helped organisations to build out the infrastructure they could use in working from home. For example, we have access control solutions that help organisations reduce the exposure to cyberattacks using zero-trust access and strong authentication mechanisms. We can also integrate our authentication solutions with different infrastructure customers have such as VPN or mail access so they can elevate the authentication required for these services.”

Most organisations turned to online collaboration tools such as teleconferencing

to keep businesses operational. Refaey says Micro Focus was approached by customers seeking to secure their remote collaboration platforms such as Zoom or Microsoft Teams. “We availed our various tools to protect such cloud applications,” he explains.

For cloud security, the company offers solutions which ensure that even if companies’ systems have been compromised, the encrypted data is useless to attackers.

According to Refaey, Micro Focus also temporarily offered software free of charge to some existing and new customers to assist them to quickly adapt to the change and soften the impact of Covid-19.

“We also have other solutions that help organisations build profiles or patterns for users to detect anomalous activities.

September 2020 35

FEATURES / CYBERSECURITY

“FOR MANY USERS, THERE WILL BE PROTOCOLS, ONLINE TOOLS AND COMMUNICATIONS THEY WILL NOT BE FAMILIAR WITH, AND IT’S THIS LACK OF FAMILIARITY THAT THREAT ACTORS WILL TRY TO CAPITALISE ON” Emile Abou Saleh, regional director, Middle East and Africa, Proofpoint

So, even if an organisation does not have data models or models to detect anomalous behaviours for remote users, we have solutions that can build these capabilities for them and learn over time. This reduces false positives and also helps pinpoint malicious attacks and suspicious behaviour.

“We have other products that helped organisations produce applications faster and more securely. Such tools scan the codes of applications that they develop, identify the potential vulnerabilities that may lurk in the applications, and suggest to them solutions. And this is all integrated with the DevSecOps concept of ‘develop fast and secure fast’,” he explains.

THE NEW NORMAL Even as the threat of Covid-19 ebbs, many organisations are looking to continue with remote work, at least for part of their operations.

Navigating through this ‘new normal’ and adapting to working from home imposes risks that organisations need to change their structures to, observes Kanaan. “As working from home becomes the new norm, IT managers need to develop their security budgets to also consist of endpoint protections for remote workers. It is important that employees keep in mind that working 36 September 2020

from home does not come with the same level of security as working from the office, which is protected by a corporate firewall and other on-premise security solutions,” says Kanaan.

Organisations need to adopt a zero-trust model, says Refaey. “This applies whether you’re in the office or you’re working remotely anywhere in the world,” he adds.

AWARENESS Cybersecurity awareness and training initiatives, which many organisations paid only scant attention to in the past, have now become an imperative in the current situation.

“It is critical for employees to be provided with cybersecurity awareness moving forward. It is now in the hands of the employees to keep themselves and their organisations safe. Cyber awareness and cyber education are the two key elements to building sustainable protection for any organisation – the human firewall,” says Kanaan.

An effective learning programme should be a mix of online and classroom learning (virtual or real-world) and regular advice by email. Regular testing is crucial especially when it applies to spotting phishing attacks. “Setting up fake phishing emails is

one way for organisations to test whether their employees have gained the most out of their training,” explains Kanaan.

Beyond education, communication is crucial, he adds. “Education is vital but so is clear communication. Employees need to understand what is acceptable to do on corporate devices, rather than what isn’t,” says Kanaan.

Security protocols and ongoing awareness and education training for remote employees should be a priority and treated as a long-term initiative. “To change mindsets and reduce the mistakes and risk associated with employee behaviours, cybersecurity training must become an ongoing mission,” says Proofpoint’s Saleh.

“Occasional phishing tests and oncea-year training are not enough to raise awareness and help your employees learn how to apply best practices,” warns Saleh.

He says remote workers should also be using a secure wifi connection, company VPN, and strong passwords.

But while humans continue to be the weakest link in the organisations, they are also the first line of defence, says Refaey from Micro Focus.

“Organisations need to educate their employees through more interactive methods such as simulated attacks. We need to train them on how to be skeptical about everything that they receive. They need to be cautious when they are using open networks such as in coffee shops or airports.”

Awareness programmes also need to be tailored to different people in an organisation, he says.

“Technical people need to have their own set of awareness programmes as their requirements are different from those in finance or customer service.”

The cybersecurity situation was already perilous well before the Covid-19 outbreak, but the crisis has imposed a whole new reality. In addition to its catastrophic human toll, the pandemic has put organisations’ assets at greater risk than ever before.

That said, the same security protocols of zero-trust, multi-factor authentication, people-centric cybersecurity and training and awareness that relate to corporate networks apply to remote work.

This is an opportunity for organisations to ensure that long-neglected security processes are implemented to ensure healthy and safe networks. gulfbusiness.com

FEATURES / GULF BUSINESS ACADEMY

Managing time

AND ENERGY

Y

our only two resources in this life are time and energy.

Both are finite. What you do with your two key resources will determine your life’s outcome.

TIME

If you waste your time doing unproductive activities, you will have results comparative to your input. Here are six things that you can do every day that will yield tremendous results 1. Wake up for business every day.

Whether you have work or not, get up and get going as early as you can, ideally at 5am.

2. Take time to walk before you do anything else. This allows you to get your thoughts clear before you begin your day.

3. Write down what you are grateful for.

Make a list every day.

4. Write down who you are. I am_.

Write empowering messages every day. This is a practical way of reminding yourself about who you are.

5. Write down the one thing that you must do today. And do it.

6. Do a small workout where you are. Get stronger. Also eat well.

If you take the time to do these six simple things, you will build up an indomitable force within yourself that will express itself through you in every interaction throughout your day. gulfbusiness.com

ILLUSTRATION: GETTY IMAGES/AMY DEVOOGD

A big part of reinventing yourself is ensuring that you wake up early and eat right, opines Gulf Business Academy trainer Mark Dickinson

ENERGY

You must figure out how to generate energy.

A car needs a functioning engine and fuel.

There are two parts to that – one that does the work and the other that feeds the first.

Similarly, your body is the one that does the work, while your energy is provided by what you put into it. If you load up your body on chocolate, alcohol, heavy food, fat and sugar, how will your motor function?

Feed your body with good things. Eating healthy food is our normal operating mode – remember that eating junk is not our default mode. We are not depriving ourselves when we do not eat unhealthy food; we are living as our body is designed to function. As soon as you start eating right, you will experience a greater sense of energy. As you reinvent yourself, your eating behaviour has everything to do with how much energy you are going to have.

Another key factor to ensure higher energy levels is waking up early. This gives you power over your mind and you start your day with personal success. To wake up early means that you will have to go to bed early. Going to bed early is a wonderful way of cutting out a lot of the excesses and useless activities such as ‘binge-watching’ online, surfing the internet, playing games and watching TV until the early hours of

the morning. These activities drain energy.

One of the points people share with me about why they stay up late is that they believe they can work in an uninterrupted and focused manner at night. The problem is that biologically, you start winding down at night. Your body is coded to go to sleep and no matter how hard you try, you will see distractions creeping in, which in turn will affect your sleep cycle.

The moment that you start waking up early and eating well, you are going to feel a sense of power in your body. You are going to experience weight loss, which will make you feel good. You are going to quit wasting time in the evenings, which is going to encourage you to do more with your day, and your body is going to be turbo-charged, which will make you feel stronger.

All of this will provide you with greater energy and more time. With these two resources operating at full capacity, you will be able to face every day motivated, focused and ready to succeed.

You are now reinvented.

September 2020 37

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

Digital transformation takes centre stage in the new normal Digital businesses have the potential to emerge faster from the pandemic and will be better prepared for the future

C

ovid-19 caused our world to change almost overnight. With little chance to prepare, organisations had to adapt fast to a new set of priorities and challenges.

Businesses shifted overnight to an almost completely digital world as the consequences of the pandemic took hold. Meanwhile, IT departments across the world grappled with surging demand and a very real urgency to accelerate digital transformation strategies.

“No organisation was left untouched by the need to innovate and digitally transform in an incredibly short period of time,” observes David Noël, regional vice president for Southern Europe, Middle East and Africa at AppDynamics, now part of Cisco.

In a recent AppDynamics report The Agents of Transformation Report 2020: Covid-19 Special Edition, 81 per cent of technologists in the UAE said that Covid-19 had created the biggest technology pressure ever experienced in their organisation. Further, 86 per cent said digital transformation projects had been approved within weeks which would typically take more than a year.

However, only 41 per cent of technologists said they have all the skills and personal qualities as well as access to the support, leadership, tools, and resources needed to make a positive impact.

From the technology side of things, the customer experience is the biggest priority for organisations as they look to digitally transform.

But a lack of unified visibility into the performance of the tech stack and its impact on business is holding organisations back, Noël warns.

In the survey, 88 per cent of technologists in the UAE cited lack of visibility as the biggest

But in the current environment, perhaps the major differentiator for success could be the quality, attitude and outlook of the technologists themselves who will drive digital transformation initiatives. “Rather than shy away from the challenges they have faced, many IT professionals see this as an opportunity to show their value to the business,” says Noël.

According to the report, 92 per cent of UAE technologists believe they can positively impact how the business responds to (and then recovers from) the effects of the Covid19 pandemic.

“We’re seeing a new breed of technologists, primed to deliver transformation and business impact,” says Noël.

“Without a doubt, the rule book for digital transformation has been re-written” David Noël Regional vice president, Southern Europe, Middle East and Africa at AppDynamics

issue impacting their ability to deliver better digital customer experiences, the highest of any region surveyed in The Agents of Transformation report.

“For IT teams, end-to-end visibility into both web and mobile applications is vital for gaining the insight they need to understand the consumers’ habits, as well as the broader business,” Noël says.

DIGITAL TRANSFORMATION The business case for digital transformation has been clear for decades. Put simply, organisations that fail to understand and keep pace with rapid technological advancements will be outstripped by their competitors.

At the heart of digital transformation is the need for organisations to deliver incredible experiences for customers and employees, says Noël.

“In normal circumstances, consumers have very high expectations for the businesses and services they interact with. This demand for flawless digital experiences has meant that organisations need to provide high-performance and scalable services at all times to protect their reputation and stay ahead of the competition,” Noël adds.

The current pandemic has intensified consumers’ demands, as they rely even more on digital channels to access information, services and products.

“In a digital-first world, brands need to

81%

of technologists in the UAE said that Covid-19 had created the biggest technology pressure ever experienced in their organisation, according to an AppDynamics report

managing mean time to resolution (MTTR) of performance issues with a remote IT department,” Noël explains.

ILLUSTRATION: GETTY IMAGES/WITT UDOMSILP

THE NEW NORMAL

ensure their digital performance is, and continues to be, a top priority. Covid-19 has accelerated digital transformation and proven to be an enforced catalyst for change amongst even the most risk-averse organisations,” says Noël.

Managing the rapid acceleration of digital transformation during the pandemic has been no simple task. “Without a doubt, the rule book for digital transformation has been re-written,” Noël observes.

According to him, amongst the biggest priorities for AppDynamics customers has been delivering optimal customer experience to end-users across the web and mobile applications.

“Some of the common challenges in delivering seamless customer experiences during the pandemic include managing spikes in website traffic, lack of unified visibility and insight into the performance of the technology stack and its impact on customers, and

The ‘new normal’ business climate brings fresh pressures and increasing demands every day.

Organisations must adapt quickly and ensure they have a robust business transformation strategy in place, says Noël.

“To achieve success and deliver outstanding digital services through these uncertain times, organisations need to have full-stack visibility across their IT infrastructure. This includes a performance-lens view that allows IT decisionmakers to see the bigger picture, understand how customers interact with applications, how performance impacts these interactions, and find a clear path to resolving the right issues at the right time,” Noël says.

Applications are increasingly crucial to business performance. Therefore, technologists must find ways to ensure they have access to the tools and accurate data they need to make informed, strategic decisions in real-time, and connect application and digital performance to key business outcomes.

Application performance monitoring (APM) has become critical in enabling this, says Noël.

FEATURES / GULF BUSINESS AWARDS

Standing tall As we get closer to the 2020 edition of the esteemed Gulf Business Awards, we look back at the previous winners of the prestigious Lifetime Achievement award

T

he 2020 edition of the prestigious Gulf Business Awards will take place on November 25 in the UAE to recognise and appreciate companies and business leaders in the Gulf who have truly stood out in this very tough year.

While the Covid-19 crisis has disrupted the regional economy across all sectors, innovative leaders and resilient organisations have managed to adapt to the ‘new normal’ and have emerged as beacons of hope. These are the champions we wish to acknowledge and celebrate.

Along with awards for companies and business leaders across the banking, energy, healthcare, real estate, transport and logistics, retail, tourism and hospitality sectors, we have also introduced three special categories this year, including Covid-19 Heroes, Disruptor of the Year and Sustainability Company of the Year. One business leader and company will be selected for the accolade of overall ‘Business Leader of the Year’ and ‘Company of the Year’.

Gulf Business will also present the coveted Lifetime Achievement award to one special individual for their outstanding contribution to the region. As we head closer to the event, we recap all the previous winners of this prestigious accolade.

40 September 2020

2018 HE Sheikha Lubna bint Khalid Al Qasimi The UAE’s first female cabinet minister and former president of Zayed University

Speaking to Gulf Business in an exclusive interview at the time of winning the award, Sheikha Lubna said: “I advise women to start by believing in themselves, following their passion and developing a diverse skillset that will lead to definitive positive outcomes.

“However, in my experience the business world is not easy to navigate and often difficult to succeed in. Women must, therefore, understand their market through careful research, continued assessment and pursue their goals with determination no matter what setbacks may appear on the path to success.

“The one trait that I believe is essential for businesswomen is consistency. Keep believing in the magic you’re creating, move forward and face the obstacles that you encounter with patience and intelligence and, believe me, you will achieve your dreams.” gulfbusiness.com

FEATURES / GULF BUSINESS AWARDS

2017

2016

2015

HH Sheikh Ahmed bin Saeed al Maktoum

Sunny Varkey

HE Easa Saleh Al Gurg

2014

2013

2012

HE Mohamed Alabbar

Khalaf Al Habtoor

HE Abdul Aziz Al Ghurair

Chairman and CEO of Emirates Group, president of the Dubai Civil Aviation Authority and chairman of Dubai Supreme Fiscal Committee, Dubai Airports and Emirates NBD

Chairman of Emaar

gulfbusiness.com

Founder and chairman of UAE-based GEMS Education

Founder and chairman of the Al Habtoor Group

Founder and chairman of UAE-based conglomerate Easa Saleh Al Gurg Group

Chairman and former CEO of Mashreq Bank

September 2020 41

PARTNER CONTENT

Investing in times of recession

No portfolio is recession proof and what is required is a well-planned strategy on managing the downside risk, says Vijay Valecha, CIO, Century Financial

“R

ecession is an opportunity in wolf’s clothing,” self-help guru Robin Sharma famously said in 2013 when talking about the recessionary cycles and the investment opportunities they provide. With the onset of Covid-19, the new economic world order is likely to see more uncertainty and pessimism. The new reality consists of changing business models, launch of new unicorns that focus on digitalisation and remote working themes, massive job losses and survival of the fittest businesses.

TIMING IS EVERYTHING Investing during a recession or a downturn has always seen people earning good returns in the longer term. During the nadir of the 2008 – 2009 financial crisis, when the global markets crashed, a lot of good quality stocks were available at cheap valuations. The recessionary cycle also gave rise to a new generation of investors who were willing to bet on innovative companies. Some of the unicorns launched during that period include market leaders such as Uber, AirBnB and Square.

Soon after the onset of the Covid-19 pandemic, the market crash in February – March saw top quality stocks like Apple, Microsoft and Boeing trading 30 per cent to 50 per cent below from their year-to-date (YTD) peaks.

This provided a good value buying opportunity for long term investors. Currently, most of those stocks – especially those in the tech sector – have fully recovered their YTD losses and are even trading above their all-time highs.

IS THERE A ‘RECESSION PROOF’ PORTFOLIO? A lot of investment strategies are centred on providing ‘recession proof’ advice to ensure that one asset’s negative returns are balanced by positive returns from other asset classes.

Investing in cross assets such as equities and bonds as well as gold and dollar are often thought of as a well-proven solution. However,

42 June 2020

during a recessionary sell off, price often leads market macros and fundamentals. This causes a huge dump across all major asset classes.

Case in point – the recent market crash due to the Covid crisis saw assets across the spectrum including equities, bonds and commodities suffer a huge decline. This flight to safety out of all risky assets – and even out of perceived safe havens like bonds – caused a major panic selling wave in the markets.

In reality, no portfolio is recession proof and is bound to be affected by market forces. What is required is a well-planned strategy on how to manage the downside risk so as to sustain investments in the longer term.

Vijay Valecha currencies. Presence of multiple players in these markets ensures that entry and exit opportunities are multiple. In the non-listed space, products typically involve huge single value block deals like investments in real estate, private equity as well as other hybrid over-the-counter (OTC) products. These involve a high degree of risk and consequently provide high returns.

WHAT ARE THE BEST INVESTMENT AVENUES DURING A RECESSION?

WHAT’S WORKED DURING PAST RECESSIONS?

While the investment options are spread out across multiple asset classes, some are timetested and often provide returns in longer term.

Broadly, they can be classified into listed and non-listed investments. In the listed space, the ability of the investment product to trade on secondary markets ensures that sufficient liquidity is available at all times. This includes assets like stocks, bonds, commodities and

Beaten-down stocks with strong fundamentals and core-sector stocks have often given investors results in longer runs. Investors’ love for tech has again been proved this time with Apple recently hitting $2 trillion valuation.

Sovereign and AAA rated bonds tend to gain during times of distress due to the low interest rate environment and monetary stimulus measures from central banks.

Previous recessions have also seen the rise of startups that are able to execute niche concepts. What really matters in the end for such companies is their ability to sustain and capitalise on first mover advantage.

The whole notion of value-investing during a recession relies on the concept of leveraging the current market conditions and capitalising on the opportunities. The human mind always hovers between the two ends of the spectrum – fear of losing and fear of missing out. Anyone who is willing to balance out the tradeoff will likely emerge as the clear winner.

For more information, visit www.century.ae

Recession Investing • Invest in yourself first – Brush up your skills and acquire new ones • Set up a strong foundation – Get clarity on how much you want to invest • Build up a diversified portfolio – Ensuring that it works in the longer run • Be patient – Hold onto your investments until your objectives are met • Time the exit right – Deploy sufficient risk mitgation measures

Disclaimer: Trading in financial markets carries high risk of losses and may not be suitable for all investors.

gulfbusiness.com

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

GCC BANKING

ILLUSTRATION: GETTY IMAGES/CSA IMAGES

SPECIAL REPORT

F

or as long as people have existed, banking has existed, even in its most non-descript form.

Prior to the first currencies being minted, merchants granting grain loans to farmers and traders transporting goods through various cities were touted as the first prototypes of banks. The first proper bank too was no more than a series of vaults for people to store valuables in. Since then, banking worldwide has graduated from bullions in a vault to a plethora of financial products and offerings for consumers and corporate entities, nurtured and propelled by ingenuity, innovation and digitalisation.

Banking on banks: How are they faring?

BY ZAINAB MANSOOR

44

The GCC’s banking landscape is as diverse as it is sheer. On the heels of regulatory reforms, customer-centric approaches, consolidation, technological investments and omnichannel approaches, the regional ecosystem in recent years has exploded. There are more than 70 listed banks across six GCC countries; Qatar National Bank remains the biggest lender in the GCC by assets – which total $262bn – followed by the UAE’s First Abu Dhabi Bank ($227bn), according to data published

by Bloomberg in July.

In recent years, the Gulf’s banking sector has shown resilience, recording formidable growth in terms of assets and profitability, despite political and economic headwinds.

GCC banks recorded an increase of 16.9 per cent in net profits in 2019, totaling $36.5bn, while total assets went up by 12.8 per cent to $2.3 trillion, a KPMG report, summarising the performance of select 55 GCC-based listed banks for the year-ended December 31, 2019, revealed. Meanwhile, bank share prices trended upwards with an average increase of 9.5 per cent over 2019, it found.

Islamic banks in the GCC have also maintained sound assetquality and hold encouraging profitability indicators, funding profiles, and capitalisation. The 2019 Islamic Banking Index by Emirates Islamic bank, which polled more than 900 respondents with a UAE bank account and a minimum monthly income of Dhs5,000, revealed that 60 per cent had at least one Shari’acompliant product, up from 55 per cent in 2018. Meanwhile, non-Muslim respondents’ interest in Islamic products also grew since 2018, including a 9 per cent increase in Islamic current accounts, and a 6 per cent hike in Islamic savings accounts.

“The UAE headed into 2020 with renewed confidence. However, the twin effects of the Covid-19 pandemic, leading to the postponement of Expo 2020 and the collapse of crude oil prices have caused substantial economic disruption in the UAE and across the oil-rich Gulf,” says Matthew Escritt, partner, Banking at Pinsent Masons Middle East.

“As the region moves beyond the acute phase of the crisis and takes tentative steps to reopen, it is clear that the region’s banks will be front and centre in that recovery. Strong capital buffers together with recent consolidation in the sector have meant that the UAE’s banks are better placed than financial institutions elsewhere to come through this crisis.”

ILLUSTRATION: GETTY IMAGES/SIMONE GOLOB

GCC’s banking landscape

ILLUSTRATION: GETTY IMAGES/MIRAGEC

SPECIAL REPORT

The ‘Covid’ effect The Covid-19 pandemic has dealt a strong blow to the regional and global banking sector. Although the fallout of the outbreak in the region was mitigated by the quick measures taken – including government support – the impact was felt along the length and breadth of the regional banking ecosystem.

GCC banks’ share prices, which had trended upwards in 2019, witnessed an average decline of 18.9 per cent between December 31, 2019 and April 30, 2020, the KPMG report noted.

“The global banking sector has faced a number of challenges as a result of subdued economic activities due to the twin shocks of falling oil prices and the impact of the Covid19. In the GCC, the extent to which the banking sector will be impacted is likely to be country related; if you look at the two largest economies in the GCC, it is likely that the impact in the UAE is more compared to Saudi Arabia. One indicator that is followed is the NPL (non-performing loans) ratio. This ratio – for the 10 largest banks in both countries stood, at the end of

46

Q1 2020, at 5.2 per cent for UAE compared to 1.9 per cent for Saudi Arabia,” says Asad Ahmed, managing director and head of Financial Services ME, Alvarez & Marsal.

To offset the economic onslaught brought on by the pandemic the UAE Central Bank launched the Targeted Economic Support Scheme in March this year, which included Dhs50bn of zero-interest, collateralised loans for UAE-based banks and allowed for Dhs50bn funds to be freed up from banks’ capital buffers.

Earlier this year, the Saudi Arabian Monetary Authority also boosted liquidity in the market by injecting SAR50bn ($13.3bn) into the banking sector.

“The global nature of this crisis has provided an opportunity for transformative change in the sector as banks rethink all aspects of their business and operations not only to ensure their survival, but also to allow them to emerge from the crisis stronger and more resilient than before,” notes Escritt at Pinsent Masons Middle East.

SPECIAL REPORT “From a retail perspective, the transition towards an online service model and cashless transactions can be expected to accelerate. Banks will also be looking to cut costs substantially and this will require a comprehensive assessment of all bank operations as they respond to lasting social and economic changes accelerated by the pandemic. New working practices will also cause many banks to reconsider the size of their real estate footprints, branch network and ATM distribution.”

Similarly, the Islamic finance industry is also expected to witness low-to-mid-single-digit growth in 2020-2021, after 11.4 per cent growth in 2019 supported by a strong sukuk market performance. However, the Covid-19 pandemic offers an opportunity for more integrated and transformative growth within the sector, with a higher degree of standardisation and meaningful adoption of financial technology, S&P Global Ratings suggests.

Merging strengths The virus outbreak and the crash in oil prices has also had implications for banks’ core operating models in the region, pertaining to employees, customers, and subsequently, their bottom lines. Many regional institutions have paused to reassess their long-term viability plans, further underpinning a recent consolidation trend that had been gaining ground.

The consolidation wave had begun in the GCC a few years ago, even as lenders faced pressure from technological innovation, the need for stronger corporate governance and increased costs. The pandemic may accelerate this trend.

The possible merger of Saudi’s National Commercial Bank (NCB) with Samba Financial Group may well be a step in that direction. The merger, which will result in the formation of a combined entity with reportedly $213bn in assets, will not only create the kingdom’s largest lender – and the third largest in the GCC by assets – but also potentially stir a next wave of mergers and acquisitions.

“It [the merger] could create the largest bank in Saudi Arabia, which would help the government implement Vision 2030. A bigger bank means a bigger capacity to finance the economy and to underwrite bigger loans,” notes Dr Mohamed Damak, senior director, Financial Sector lead, Middle East and Africa at S&P Global Ratings.

“This merger is similar to what we’ve seen in other Gulf countries, with government institutions the biggest shareholders in both entities. That should help the transaction succeed.

However, in our view, Saudi isn’t the primary Gulf market for further bank M&A – that’s the UAE, which is fragmented and overbanked.

“With Covid-19 and its negative impact on banking sector profitability, we might see a second wave of mergers that won’t be driven by common shareholders re-organising their assets, but instead based on a purely economic rationale,” he explains.

Ahmed at Alvarez & Marsal, adds: “The merger of National Commercial Bank with Samba Financial Group will continue the consolidation trend that is happening within the GCC. The

amalgamation will allow customers and businesses alike to reap the benefits of larger banks being scaled up and this efficiency being passed on to customers in the form of improved turnaround and lower overall costs.

“We believe that rising competition, reduced lending opportunities, along with an increased focus towards digitisation will continue to drive the consolidation agenda.”

The Gulf banking ecosystem has witnessed a notable consolidation phase in the years prior to the virus outbreak. In 2007, UAE-based Emirates Bank International and National Bank of Dubai merged to form Emirates NBD, followed by National Bank of Abu Dhabi and First Gulf Bank, which combined to create First Abu Dhabi Bank in 2017. Last year, Abu Dhabi Commercial Bank merged with Union National Bank and the combined entity acquired Al Hilal Bank. Regionally, in 2019, International Bank of Qatar and Barwa Bank also merged, and so did Saudi Arabia’s Alawwal Bank and Saudi British Bank.

“Even before the Covid-19 pandemic, the region had seen significant bank consolidation with around 20 banks with assets worth an estimated $1 trillion negotiating mergers. The Emirates leads in terms of both volume and value with the highest number of mergers. With tougher market conditions and a more competitive retail environment, it seems likely there will be further consolidation amongst the region’s financial institutions in the future,” says Escritt at Pinsent Masons Middle East.

As regional banks navigate through the current crisis, adopting several measures to deliver top-line growth, the industry looks set to see several major changes – including further consolidation in the market – which may well see the emergence of a robust and leaner banking landscape.

“Even before the pandemic, the region had seen significant bank consolidation with around 20 banks holding assets worth an estimated $1 trillion negotiating mergers” 47

SPECIAL REPORT How would you describe the current investment scenario even as the world continues to tackle the challenges presented by the pandemic?

The current investment regime is a globally synchronised and mostly V-shaped recovery, helped by heavy monetary and fiscal stimuli. The world economy entered a synchronised shock-like recession in the first half of 2020 and is now recovering at different speeds. The main divergence in the speed of the recovery is the amount of fiscal and monetary stimulus available. The US, China and Japan have experienced a 10 per cent downswing in economic output, with the figures rising to 15 per cent in continental Europe and 20 per cent in the UK. Emerging markets have been hit hard but at varying degrees by the pandemic, with Latin America still in doldrums.

We expect most of the mature economies to compensate for about half of the shortfall during Q3, with a much slower pace thereafter. China is the exception, since the world’s second largest economy is back at pre-crisis levels as we speak in terms of economic output.

Has Covid-19 impacted the way investors view their portfolios?

Investment trends through the Covid lens How has the Covid-19 pandemic impacted investor attitude and what are the key trends shaping the world of tomorrow? Christian Gattiker, head of Research at Swiss wealth manager, Bank Julius Baer, reveals more details

A flight into quality was the major move of private investors worldwide in reaction to the economic breakdown in H1. The main focus was on safe-haven assets, such as US treasuries and German bunds, as well as US dollars, euros and Swiss francs.

The cash ratio shot up markedly. On the corporate side, the preferred stocks and bonds were from companies that are less cyclically sensitive, such as those in the healthcare and food sectors. There was a certain reluctance to chase the crisis winners in the new economy, such as in information technology and communications, whereas biotech and other healthcare-related issuers attracted more interest.

Do you see any major impact on investment behaviour as a result?

Most investors are caught in a psychological trap, because they, by and large, missed the recovery in financial markets as of March 2020 or even sold into the downturn. Now, after many financial assets have made a tremendous comeback, Christian Gattiker, head they think it is too late to buy of Research at Swiss and maybe too early to sell. wealth manager, Bank So ‘animal spirits’ are at work, Julius Baer and this usually has a negative impact on investor behaviour, leading to self-inflicted damage to their portfolios. A lot of uncertainty is still around, in particular when it comes to cyclically sensitive or ratesensitive stocks such as banks. Overall, private investors are in a ‘freeze’ mode rather than a ‘fight’ or ‘flee’ mode.

What are the key trends that have surfaced as a result of the market changes due to Covid-19?

We observe an acceleration of existing long-term trends overall, such as in digitalisation at all levels, spanning from

48

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SPECIAL REPORT

retail consumption to healthcare. In investment terms, the trend towards investing along environmental, social and governance (ESG) criteria is experiencing further tailwinds. Many investors have realised the vulnerability of many business models and appreciate the benefits of good governance and environmentally and socially sound behaviour from economic agents. Furthermore, the trend towards more active government spending is unbroken. The biggest shift has happened in Europe, where mutually guaranteed bonds were announced on a European Union-wide level. In our view, a move towards major fiscal spending globally is one of the biggest wildcards as a consequence of this health crisis.

New economy businesses could leapfrog traditional brickand-mortar businesses by proving their superiority in times of lockdown – look at online retail, streaming services and video gaming.

What future impact do you see from the developments over the last six months from a global perspective?

The boost in innovation and the change in economic policies in response to the crisis will likely last far beyond the next six months. Ten years from now, we might look back and say that the positive after-effects of this pandemic were a major wave of innovation, plus a booming world economy.

Are there any particular sectors that have been pushed to the forefront given the current circumstances?

As this is a health crisis, the healthcare sector immediately stood out as a central area of response to the crisis. The race for a vaccine is one of the fiercest ever in human history. The funds being spent and the speed at which innovation is taking place are unprecedented.

At the same time, recent progress in terms of medical analysis and treatment has been put to work quite effectively. This is to the benefit of biotech companies in particular.

Outside healthcare, the technology sector also stands out.

“Private investors are in a ‘freeze’ mode rather than a ‘fight’ or ‘flee’ mode” 49

SPECIAL REPORT

The necessary alliance: Banking and fintech

BY ZAINAB MANSOOR

T

he use of technology to facilitate financial offerings, commonly known as fintech (financial technology), has been around for a while, but has gained renewed focus in recent years, in turn impacting the financial ecosystem. Banks across the world have been pushed to adopt digitalisation as a key element for their continuity plans and collaborate with third-party service providers for accessible reform, greater outreach, and longevity. Similarly, regional banks have been forced to acknowledge that fintech will drive change in terms of customer service and product innovation.

In the UAE, Emirates NBD unveiled Liv, a digital banking app targeting millennials centred on lifestyle, Mashreq Bank launched Mashreq Neo, its full-service digital bank, while

50

Bahrain’s Bank ABC launched ila Bank, a digital, mobile-only bank. Banks have also offered a series of technological innovations to their business customers. Last year, Emirates NBD launched a SmartTrade portal to facilitate transaction banking clients, and in 2020, the bank enhanced the portal by introducing a service that enabled complete contactless processing of export collections.

In March, Dubai International Financial Centre and UAEbased Mashreq Bank jointly launched a blockchain data-sharing platform to support licensed businesses and corporates in the UAE to “instantly” open digital bank accounts. The platform aims to make it easier and faster for new companies to do business in the UAE, removing existing paper-based KYC processes. Additionally, multiple regional banks have executed blockchain-based trade finance transactions across the GCC. Customer adoption of such initiatives – thanks to greater connectivity, convenience and growing digital implementation – has been impressive. At Emirates NBD, the share of mobilebased digital account openings increased to over 40 per cent of new individual accounts sourced during Q2 2020, while 60 per cent of UAE-based Abu Dhabi Islamic Bank’s customers now bank digitally.

“Fintech has already impacted digital payments services, transfers and trade finance, and it is expected that the number of products and services will also diversify throughout the region, while governments will look to update regulations and legislation to reflect the evolving nature of the industry.

The speed at which paperless solutions in trade finance are adopted will accelerate, given current circumstances,” says Asad Ahmed, managing director and head of Financial Services ME, Alvarez & Marsal.

There is no denying that growing digital adoption, transparency, access to alternatives and convenience have all led to a common belief that fintech – in omnifarious ways – is here to stay. But will it replace the bank’s brick-and-mortar structure?

And in doing so, will that pave the way for a more engaging, competitive landscape or trigger disruption within the traditional financial industry?

Is the ascendancy of one, the oust of the other?

Experts feel that while fintech entities are shaking up the market and growing their pool of consumers, it may be a long way off before they replace a traditional bank’s key functions.

“The global financial sector has been investing heavily in technology for a number of years in order to improve both operational efficiency and operational resilience. We have seen an increased use of artificial intelligence (AI) and blockchain in addition to cloud computing, advanced analytics, biometrics, and automation. Some of this adoption is new, and some is not,” opines Bryan Stirewalt, CEO, Dubai Financial Services Authority.

“While operational efficiency and profitability are primary drivers of change, a considerable amount of the digital transformation in the financial sector is from the threats of those

ICONS BY DDARA AND VECTORS POINT FROM THE NOUN PROJECT.

ILLUSTRATION: GETTY IMAGES/SLOOP COMMUNICATIONS

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

Transforming the way we pay Mastercard rolls out tokenisation technology across the region to protect online shoppers as e-commerce booms

T

he Covid-19 pandemic has revolutionised the way we shop. With lockdowns and the continuing need for physical distancing, consumers in the UAE – and across the world – are increasingly moving away from cash and opting for contact-free and digital payments experiences. And the trend is here to stay.

According to the Spending Pulse report

by Mastercard, 54 per cent of UAE consumers polled between April and July said that they believe less in-store shopping will continue to be a trend due to the convenience and ease that e-commerce provides.

The UAE’s e-commerce industry is set to reach $63.8bn by 2023, a recent report by Dubai Future Foundation states.

The boom in e-commerce has also led to the need for consumers to transact with more ease and flexibility, while ensuring that the information remains secure.

In line with this, Mastercard has introduced its ‘MDES for Merchants’ (M4M) offering in the UAE. The service uses tokenisation technology to speed up and simplify the purchase process online and in app, as well as for subscription-based and recurring payments like streaming music and video services and utility bills.

Tokenisation encrypts consumer data by replacing card numbers with digital tokens. Every time a transaction is made online or with a mobile wallet, a unique token is created to make the payment, which ensures that a consumer’s 16-digit card number is not stored anywhere. This prevents improper usage at any other location and provides additional security to minimise online fraud.

Mastercard’s tokenisation technology also ensures that the cards consumers store on file stay up to date.

Unlike physical cards, network tokens do not expire – when consumers receive a new physical card from their bank, their credentials are automatically updated, eliminating the hassle of re-entering their card numbers. The technology is also designed to protect the security of consumers and merchants.

“Online shopping has gained significant traction in the UAE, and it is imperative for merchants of all sizes to ensure that they are offering a convenient, enjoyable and secure digital experience,” says Girish Nanda, country manager, UAE and Oman at Mastercard. “We

Girish Nanda, country manager, UAE and Oman at Mastercard

are protecting the interests of businesses and consumers alike and building technologies that ensure all digital transactions are trusted, secure and frictionless by enabling technologies like tokenisation and leveraging our payment gateway capabilities with MPGS to bring them into market.”

According to Kartik Taneja, EVP – head of Payments at Mashreq Bank, tokenisation not only enhances the security of card holder data, but also enables a “seamless checkout experience” for customers.

“We are confident that these solutions will help in enhancing customer trust as well as increase the adoption of digital commerce in the region,” he says.

Currently, Mastercard has partnered with Checkout.com and FOO in the UAE to roll out this technology.

“Checkout.com has been working with Mastercard to introduce innovative features and products that enable our merchants to seamlessly accept payments and unlock more value from every transaction,” says Sebastian Reis, EVP, Global e-commerce at Checkout.com.

“We’ve seen an acceleration in the shift from offline to online commerce in the UAE driven by the pandemic.

As such, the ecosystem requires constant innovation such as tokenisation, to ensure that consumers and merchants are protected in an increasingly digital world.”

Nanda adds that Mastercard remains committed to use its technology to develop innovative digital solutions that are relevant to all users in a transforming digital landscape. “With rising cybersecurity risks amidst this pandemic, our focus remains steadfast on delivering the safe and secure digital experience that all transactional participants need to successfully and safely adapt in a new commercial environment.”

“With rising cybersecurity risks, our focus remains steadfast on delivering the safe and secure digital experience that all transactional participants need”

ILLUSTRATION: GETTY IMAGES/MALTE MUELLER

SPECIAL REPORT

seeking to challenge and disrupt traditional players in the financial sector. Some challengers are competing with the sector to take their market share, some are looking to engage, partner and collaborate.”

Both traditional lenders and fintech players can grow simultaneously, operating hand in glove, offering customers a myriad of services. Banks are well-placed to adopt technological innovations themselves, while fintechs can offer similar and alternative offerings in a different and unbundled way.

“The main risk of technological disruption for retail banks in the GCC is changes in customer preference. Regulatory risk is low because policymakers are conscious of the extreme importance of local banking systems in the region, and the need to keep them safe from potentially disruptive unregulated competition. Technology and industry structure present a moderate risk of disruption. The digitalisation of GCC economies is still a work in progress. The adoption of big data, AI analytics, as well as voice and facial recognition tools could enable a more effective and cost-efficient provision of customer services,” notes Dr Mohamed Damak, senior director, Financial Sector lead, Middle East and Africa at S&P Global Ratings.

“We expect some GCC bank business lines to remain protected from fintech in the medium term. These lines include corporate lending, where human added-value remains significant in the region. Therefore, even if customers’ preferences continue to evolve, we think that risks to these banking systems remain contained, at least in the next two years.”

Meanwhile, the prospect of the finance industry partnering with fintech, each availing the strengths of the other, could offer the impetus for both to ride the wave of change more successfully.

“Partnering with fintech providers can help the region’s banks deliver their products in a more accessible way and offer convenient digital financial services to customers. This will meet the demands of the ‘new normal’ and ultimately propel the region’s banking ecosystem further,” says Thomas Bicknell, partner, Financial Services, Pinsent Masons Middle East.

Phygital banking The reality is that the banking industry – now more than ever – is leaning into further disruption, building its narrative around a holistic package that offers benefit, convenience and efficiency wrapped into one. That is also perhaps the need of the hour, with disruptive technologies manifesting interminably.

With digital transition gaining ground, putting into question the shelf life of brick-and-mortar structures, banks have been forced to make the ‘phygital’ leap and leverage the power of technology, more to survive than to innovate.

“A ‘phygital’ bank interacts with its customers digitally across both physical and online channels. All interactions are powered by digital to have intelligent context aware conversations with the customer as a bank – and not as siloed individuals or channels,” explains a report by Accenture, describing the newly coined phrase.

“In each interaction, the phygital bank of today, embeds AI powered bots and intuitive user interface (UI) to break the cognitive, language and literacy barriers to increase end-toend seamless interactions for all customers,” it adds.

A phygital bank is inherently digital as an organisation.

Everything – including its leadership, culture, the way it collaborates to deliver services and how skills are acquired or

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SPECIAL REPORT developed is attuned to the digital era. Furthermore, banks can become phygital by acting on seven strategic interventions – including re-imagining the network to leverage on digitalled efficiencies, updating the operating model and setting up distinct ecosystems, according to the report.

In a nutshell, banks must effectively morph the strengths of physical and digital to form a hybrid experience for users.

Financial institutions can learn from technological innovations in other industries such as AI-powered chatbots and secure video interactions to recalibrate their operations and offer customers a better experience.

“There is a long and exciting road of development ahead for phygital banking. Our own studies tell us that customers now consider ‘technology and platforms provided’ to be the priority when assessing banks for a cash management provider, over other measures such as ‘breadth of solutions’ or ‘geographical presence’,” notes Noor Adhami, regional head of Global Liquidity and Cash Management, Middle East, North Africa and Turkey at HSBC. In June this year, 93 per cent of corporate payments and 77 per cent of trade transactions in the UAE were submitted digitally via HSBCnet, the bank’s online corporate banking platform, says Adhami.

“As for the future, we predict that the winning formula is one that blends physical and digital; a ‘phygital’ presence where clients can access an expanded range of offerings via our digital channels without losing the personal touch and the expertise of specialist bankers.”

How open is open banking?

Likened to how changing consumer preferences and technologydriven innovation have propelled a seismic shift in banking, they have also accelerated the adoption of collaborative models such as open banking – the practice of securely sharing banking data through APIs (application programming interfaces) between unaffiliated parties to deliver enhanced benefits.

Banks sharing financial data with authorised third-parties – such as other banks and fintechs – could be the starting point of another wave of innovation that realigns the competitive landscape of the regional banking ecosystem. It could also be a turning point for banks, which have until now, kept customer information strictly within their field of vision.

Regionally, lenders are already starting to adopt open banking solutions. Last year, National Bank of Bahrain (NBB) claimed to be the first bank in Bahrain and the Middle East and North Africa to launch open banking solutions. The bank’s aggregation service grants customers a holistic view of their finances, enabling them to make instant transactions and informed decisions on competitive products and services.

NBB’s open banking services were developed by Tarabut Gateway, MENA’s first and largest licenced Open Banking platform.

“Within the MENA region, Bahrain has pioneered the open banking movement by being the first in the region to mandate all retail banks to comply. Open banking enables banks of all sizes to harvest an enormous amount of data, known to

currently hold greater value than any other industry in the world, hence unleashing a new wave of personalised financial products and services,” comments Abdulla Almoayed, CEO and founder of Tarabut Gateway.

“The National Bank of Bahrain’s account aggregation platform grants customers the ability to access financial data from all their accounts, credit cards, loans, and mortgages across all retail banks in Bahrain from a single platform. Through our technology-driven platform, NBB customers are presented with a consolidated view of their financial position in terms of net worth, assets, liabilities, and behavioural analysis.

“Additionally, users are given the ability to filter through history transactions to provide a user-friendly navigation capability within the app, accompanied by AI-powered tools and algorithms that automatically categorise and automate spending.”

Locally, UAE-based Emirates NBD enabled open banking collaboration by launching its API sandbox. Launched in 2018, as part of the Dhs1bn investment committed towards its digital transformation, the sandbox made the bank more accessible to developers with API technology. Last year, it partnered with Dubai International Financial Centre to launch the API sandbox programme, certifying fintechs that collaborate and innovate using Emirates NBD’s API sandbox.

As open banking becomes prevalent, its benefits – such as offering a clearer snapshot of a consumer’s financial situation and risk levels and helping in the aggregation of customer data – will enable it to gain greater traction. The technology will also possibly lead to greater product and service innovations.

“Opening up financial services to clients and third parties increases choice, transparency and competition – all good news for consumers. However, banks require a smarter approach to benefit from such a change and an ability to reimagine banking and redefine the success formula; one that is driven by innovation and a wider range of services, connected across multiple players and several platforms. Ultimately, banks need to become more comfortable with having less control over the end-to-end client journey,” says Adhami at HSBC.

“Open banking enables banks of all sizes to harvest an enormous amount of data, unleashing a new wave of personalised financial products and services” 55

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SPECIAL REPORT

Contactless solutions A wide-scale digital reform among banking consumers has been catapulted by the onset of the Covid-19 pandemic, thrusting into spotlight various technologies that were otherwise set to slowly – but surely – gain force. Contactless payments may be counted as one which will continue to escalate as its role in promoting social distancing – and hygiene – will resonate across consumers worldwide.

“Covid-19 has presented the perfect opportunity for banks to adapt digital transformation and innovate. Contactless solutions provide faster processing, enhanced security and convenience in transactions to customers, which the region’s banks can stand to gain from,” says Mukund Bhatnagar, partner, Financial Institutions, Kearney MEA. “Consumers in the GCC countries are also expected to migrate more quickly towards contactless payments such as contactless cards, e-wallets, and instant payments (including credit transfers and direct debit) to replace physical cash and cheques. Since almost 80 per cent of the point of sale transactions were cash-based prior to the Covid-19 outbreak, GCC banks have an unprecedented opportunity to leapfrog with Covid-19 being a critical catalyst.”

Analyst house Juniper Research forecasts that global contactless transactions will reach nearly $6 trillion in 2024, up from $2 trillion in 2020. Regionally, in 2019, the wider MEA region saw over 200 per cent growth in contactless transactions, according to Mastercard data.

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“Contactless solutions will require permanent and fundamental changes in banks’ strategies and capabilities. Banks need to rethink their approach towards innovation, taking into account consumer dynamics and their own organisational challenges. With consumers expecting more than convenience, issuers are increasingly challenged to provide interoperability with ‘top-of-device’ applications (such as Apple Pay, Samsung Pay and Google Pay) and to ensure their physical cards are ‘top-of-wallet’,” notes Bhatnagar at Kearney MEA. While banks worldwide are accelerating the issuance of contactless cards to leverage this momentum, central banks across several GCC countries have also scaled the contactless transaction limits in their respective countries. In the UAE, the cap was upped from Dhs300 ($81.6) to Dhs500 ($136.1), marking a 67 per cent increase. In Kuwait, it was raised 150 per cent from KD10 ($32.7) to KD25 ($81.7) while in Saudi Arabia, the limit has been raised to SAR300 ($80) from SAR100 ($26.6).

“Contactless solutions ensure convenience, security and speed for both banks and end-users alike. The convenience of digitised systems translates into additional issuer benefits with increased loyalty and low attrition rates. These can help banks further strengthen their security systems, reducing the risk of fraudulent transactions,” opines Nassir Ghrous, senior vice president, Banking and Payments services for Africa, Middle East and Eurasia at Thales. “Contactless payments are poised to continue post pandemic – this can be seen as banks have adopted new regulations in light of the ‘new normal’.”

SPECIAL REPORT

Number crunch

2019

2018

Oman

Bahrain

Kuwait

Qatar

KSA

UAE 0

In 2020, the majority of banks across the world will unavoidably face challenges due to the Covid crisis

96.1 104.6

In 2019, GCC banks experienced two-digit asset growth on average

76.2 79.4

Growing assets

6. 3

26

4.5

In US$ billion

28

$2.3 trillion

25

Total assets held by GCC banks

40

12.8%

44

8.

4

Implications of Covid-19

6 .4

year-on-year growth compared to 2018

KEY CHALLENGES:

5 82

• Liquidity pressures • Digital acceptance • Operational risks • Revenue compression • Credit quality

.6

Loan provisions

50 0

6 52

0

606

25.3%

.2

The year-onyear increase in net provision on loans in 2019

724.6

OPPORTUNITIES:

• Use of back office centres • Increased cyber testing • Branch rationalisation • Sale of NPLs • Fast track digitisation programme

750

Bank rankings TOTAL ASSETS BANK

COUNTRY

NET PROFIT $BN

Qatar National Bank Qatar 259.5 UAE 223.8 First Abu Dhabi Bank UAE 186.0 Emirates NBD KSA 135.3 National Commercial Bank 110.3 Abu Dhabi Commercial Bank UAE

BANK

Emirates NBD Qatar National Bank First Abu Dhabi Bank National Commercial Bank Al Rajhi Bank

RETURN ON EQUITY COUNTRY

UAE Qatar UAE KSA KSA

$BN

3.95 3.94 3.41 3.04 2.71

BANK

Emirates NBD Al Rajhi Bank National Commercial Bank Qatar National Bank Dubai Islamic Bank

COUNTRY

%

UAE KSA KSA Qatar UAE

21.8 20.4 19.1 19.0 18.4

SOURCE: KPMG GCC LISTED BANKS’ RESULTS

57

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Ducati e-Scrambler This e-bike is equipped with a 250W Shimano Steps E7000 engine that can produce 60Nm of torque

Switched on

Maserati kicks off a hybrid and electric future with its latest Ghibli Hybrid car which will reach showrooms later this year p.70 gulfbusiness.com

September 2020 59

Lifestyle / Horology

Rolex opened its largest boutique in the world with Seddiqi at the Dubai Mall two years ago 60 September 2020

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Lifestyle / Horology

Selling time Mohammed Abdulmagied Seddiqi, chief commercial officer at Seddiqi Holding, says that Ahmed Seddiqi & Sons isn’t letting the Covid-19 crisis drastically alter the business model of one of the world’s largest luxury watch retailers

BY VARUN GODINHO

A

hmed Seddiqi & Sons is celebrating its 70th anniversary this year. With a formidable portfolio of over 60 high-end watch and jewellery brands including Rolex, Patek Philippe and Audemars Piguet, retailing out of more than 50 locations across the UAE, it has become one of the largest luxury watch retailers not just here in the region, but in the world.

Mohammed Abdulmagied Seddiqi, chief commercial officer at Seddiqi Holding, is the third-generation family descendant running the business – one that has, like all the other luxury retail businesses globally, encountered significant headwinds this year due to the pandemic.

Taking a contrarian stand though, the company didn’t stop ordering timepieces even during the UAE’s lockdown period in which malls and retail stores were shut.

“We took the risk of ordering from the companies during the lockdown because we believed that the pandemic is a short- to mid-term situation and we required pieces for our clients readily available for when things got back to normal,” says Seddiqi.

Bolstering those assertions were recently released figures by the Federation of Swiss Watch Industry, which showed that the UAE was Switzerland’s eighth biggest export market for its watches from January-June this year, with exports valued at CHF307.7m.

He says that the demand for watches hasn’t waned during the pandemic. To support that claim, Seddiqi cites the example of a limited-edition collaboration with independent watchmaker MB&F and Moser & Cie in June. The collection, limited to 15 watches exclusively made for customers in the UAE, was sold out before the watches even arrived in the country.

“We also recently launched a new watch gulfbusiness.com

from Audemars Piguet and we’ve been having fights on how to allocate them because that’s a [real] challenge for us.”

With waiting periods for watches like a steel Nautilus, for example, being in the region of eight years at some retailers globally – getting onto the waiting list is a notoriously difficult process and requires more than sheer good luck.

Mohammed Abdulmagied Seddiqi, chief commercial officer at Seddiqi Holding

“We took the risk of ordering from the companies during the lockdown because we believed that the pandemic is a short- to midterm situation”

“Let’s consider someone who wants to purchase a Royal Oak from Audemars Piguet. We look at the purchase history of the client at Audemars Piguet and at Ahmed Seddiqi & Sons. Accordingly, he or she will be put on the waiting list to purchase the watch.” Once on that list, customers are allotted the timepieces on a first-come, firstserved basis. “We follow a strict waiting list [policy] and we are very fair with clients.

For clients who have no purchase history or who usually purchase abroad, we are blunt about it when we tell them that we give priority to our clients who are loyal to Ahmed Seddiqi & Sons,” cautions Seddiqi.

As he explains, getting onto that list also requires more than the ability to pay for the watch or the desire to keep up appearances – passion for the craft matters immensely.

“Most of the brands are on social media.

With it, the demand for specific models from each brand has increased. People have been trying to source these pieces without understanding the history or the profile of the brands – they are only looking at what is trending. Our job as retailers is to educate the client and one of the biggest platforms that we have is Dubai Watch Week.”

T

he biennial Dubai Watch Week (DWW), the next edition of which will be held in 2021, organised and curated by the Seddiqi family, is one that has risen to the ranks of leading global watch fairs such as Watches & Wonders and Baselworld.

If you need any proof of its standing, consider that last year Rolex chose DWW as its very first exhibition to participate in outside of Switzerland. That’s a statement of support from perhaps the most powerful Swiss watch brand in the world, and one that Seddiqi has supported from the Fifties. Back then, Dubai’s ruler Sheikh Rashid bin Saeed Al Maktoum personally issued a letter to Rolex affirming that Seddiqi & Sons could be a trusted partner and retailer for the brand. Two years ago, Rolex opened its largest boutique in the world with Seddiqi at the Dubai Mall – a sprawling 850-squaremetre, three-storey facility.

Unlike Baselworld and Watches & Wonders, DWW is a purely non-commercial event serving as an educational initiative for enthusiasts to engage with watchmakers and brand owners via workshops and creative hubs – without the event being reduced September 2020 61

Lifestyle / Horology

to a massive sales pitch. “The approach by the marketing team, headed by my cousin Hind Seddiqi, was where watches were treated more than just a luxury product, [but rather] as a piece of art.”

The Covid-19 crisis may have forced some of the watch companies to scale down their operations, and as Seddiqi explains, a few even chose to delay the launch of novelties since the prevailing health pandemic didn’t create a favourable social climate for the release of their watches. But that’s now set to change with watch firms picking up the pace once again. He adds that Rolex has said that it will release a few novelties this month, while Patek Philippe launched a Calatrava and a few other models recently.

“A lot of the brands showed at the Geneva Watch Days exhibition last month and contacted us to organise Zoom calls to show us their novelties. Some of them even brought the novelties to Dubai one month before the exhibition to show them to us so that we can place the orders.”

While Seddiqi doesn’t see the demand for new watches waning, retailers at some point – crisis or not – must reckon with the secondary watch market that runs in parallel to their business and is often hijacked by nefarious activities. He says that the family was searching for a way to enter the pre-owned watch market since 2006.

The opportunity finally coalesced into a joint venture between US-based Watchbox and Ahmed Seddiqi & Sons last year, who during DWW 2019, launched Watchbox’s first-ever physical store in Dubai’s DIFC. The decision to partner with Watchbox worked for several reasons, explains Seddiqi, including the fact that Watchbox buys the pre-owned watches – rather than just showcasing the collection of a third party.

Every watch that Watchbox acquires also goes through a full-service cycle before it is sold. “In the Middle East, we service all the watches from our Swiss watch service [centre] here in Dubai, which is one of the biggest in the region. The watches are offered to clients with an extended twoyear warranty from Watchbox. Apart from that, we also make sure that watches are not stolen or reported.”

I

f there’s one core takeaway from the crisis, Seddiqi says that retailers must remember to focus on the domestic markets rather than banking on tourists. “Our focus has always been the local

62 September 2020

Ahmed Seddiqi & Sons entered into a joint venture with Watchbox last year. The latter opened its first physical store in DIFC last November

market. I always recommend all my colleagues in the retail industry to focus on the local community because this is the market that will always stay with you. Yes, we need the tourists, but we can still survive very well with our local community here. They are the ones who will always support our businesses and grow it, regardless of them being UAE nationals or not.”

While Seddiqi concedes that there isn’t an extensive e-commerce programme operational at the retailer, he is confident that there is still a bright future for physical retail. “E-commerce is important. But I wouldn’t say that brands or retailers would depend on it one hundred per cent – it will be an extra [component to the] business.

But malls will still be a very strong part of the business. I think that Dubai is still strong on brick-and-mortar.”

Ultimately, retailers – especially those that have been around for decades – know that their role today has evolved from being more than just sales representatives to powerbrokers who build reputations for brands – especially independent ones that aren’t backed by conglomerates. “A funny story that my father told me is about how we got

the Audemars Piguet brand in the Seventies. My late grandfather didn’t believe in the brand because a steel watch was more expensive than a Rolex Day-Date in gold,” says Seddiqi, referring to the fact that at the time, an Audemars Piguet Royal Oak in stainless steel cost more than watches from other brands in precious metals.

“And (my grandfather) told my father that this is an expensive watch, it wouldn’t work. My father ordered a few pieces for his personal friends, and made them buy it just to prove to my grandfather that this brand can work. And today, it’s one of the strongest brands in the world.”

Seddiqi brings that lesson learnt from the Seventies up to the present day where some independent brands are facing an existential crisis. “Some brands are suffering. But it’s the power of the retailer to sustain, support and keep these brands running.”

“I was talking to my son a few weeks ago, telling him that that today Patek Philippe is almost 180 years old. And 180 years ago, it was two people who started the brand. It’s the same thing with Rolex which 115 years ago was founded by one individual. Today, it is exactly the same story with independent watchmakers. As retailers, we have to support these independent watchmakers, because 50 years down the line, our children and grandchildren will talk about how their parents and grandparents supported these brands and created a buzz for it in the region.

“The vision that you can have as a retailer, can build a brand within the region.” gulfbusiness.com

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Lifestyle / Horology

A victory lap The new Breitling Endurance Pro sports watch is inspired by a piece from the Seventies, designed with decisively 21st-century mechanics and materials

BY VARUN GODINHO

G

eneva Watch Days, which took place from August 26-29, was the first major watch exhibition to be held within Switzerland this year. There were 17 brands which participated in the decentralised self-managed event which included the likes of Bulgari, Girard-Perregaux, MB&F, Ulysse Nardin and Breitling.

Breitling didn’t wait until August to release its pieces though. Instead, it began showcasing them as early as April this year through an online Summit Webcast. By the time the lockdowns began to be lifted across the world in May and June, it was ready for some of its novelties including the Chronomat, Navitimer 35 and Superocean Heritage ’57 Capsule Collection to be shipped to its boutiques around the world.

However, Breitling showed up at Geneva Watch Days with an ace up its sleeve – the all-new Endurance Pro timepiece that falls within the professional category of its watches (with timepieces such as the Emergency, Aerospace and Cockpit for company).

The new 44mm Endurance Pro timepiece was a result of a collaboration with German triathlete Jan Frodeno who won gold at the 2008 Summer Olympics and is also a three-time winner of the Ironman World Championship.

“When Jan Frodeno first became a member of our Triathlon Squad, he asked me what Breitling he should wear. We

gulfbusiness.com

The Breitling Endurance Pro was released at the Geneva Watch Days exhibition

started brainstorming about the perfect sporty lifestyle watch and that conversation led to the development of the Endurance Pro,” said Breitling CEO Georges Kern.

Breitling dug into its archives when conceptualising the Endurance Pro – specifically the Breitling Sprint from the 1970s.

That timepiece – which in the Seventies cost around CHF190 – featured a pulsometer, a Valjoux 7733 manual winding movement and a case made from resin to reduce the weight of the watch.

Skip to 2020, and for the Endurance Pro, Breitling has used its proprietary Breitlight material that is, as the watchmaker explains, 3.3 times lighter than titanium and 5.8 times lighter than stainless steel.

Cementing the Pro’s position as a sports watch, Breitlight is resistant to scratches and corrosion, besides being nonmagnetic, hypoallergenic and thermally stable.

The chronograph is fitted with a quartz movement, but not just an ordinary one.

Instead, it features a Breitling Caliber 32 SuperQuartz movement that’s 10 times more accurate than a conventional quartz movement. To ensure that it really is as accurate as it claims to be, the Endurance Pro – like every watch from Breitling – is a COSC-certified chronometer too.

The chronograph features a bidirectional rotating bezel and a dial that displays a small-seconds subdial, as well as 1/10th and 30-minute chrono counters, with the hands coated in SuperLuminova. There’s a tachymeter on the outer bezel and a pulsometer on the inner one – the colour of which matches the Diver Pro rubber strap on the timepiece. You can have it in five hues: White, blue, yellow, orange and red.

You can even have it with a NATO strap.

Two years ago, Breitling collaborated with Outerknown, an American sustainable clothing company founded by surfing champion Kelly Slater, which recycles discarded fishing nets to create the Econyl yarn that is then used to make these NATO straps.

Global crisis or not – Breitling isn’t on standby mode.

September 2020 65

Lifestyle / Art

Street talking Street art is beginning to grow roots in the region.

Bringing it centre stage is Louis Wright, founder of Vandalist Art, who is now also curating a members-only virtual gallery – Red Dot Rooms – that incorporates VR and augmented reality into the mix

BY VARUN GODINHO

S

ubversive, irreverent, edgy. You can find your own description of the culture that has taken street art from the fringes to the mainstream.

Globally, several artists have elevated street art into an entity that can command formidable sums of money – notably, Jean-Michel Basquiat, for example, went from nearanonymous graffiti artist in the Eighties to posthumously commanding $110.5m for a painting called Untitled three years ago.

While street art has been a recognised and developed art form in mature art markets such as the US and UK as early as the Eighties and Nineties, it’s been only a few years since it began to gain in popularity here in the region.

Determined to raise the stakes with this art form is Dubai-based investor, collector and entrepreneur Louis Wright. Wright isn’t an artist himself and neither was art an allconsuming focus for the most part of his life. He dropped out of school at 15 for personal reasons and worked odd jobs including at building sites and shops.

At the age of 23, he switched to selling financial products in the UK. Not long after he was approached by Woodbury House gallery in London’s Soho district to work with them. That’s when he was introduced to the works of prominent street artists like Richard Hambleton and sculptural artist Schoony who counts Angelina Jolie and Brad Pitt among his collectors.

“I started to approach artists myself and form relationships with them. I threw my first independent art show in summer 2018 in Mayfair, London. It was a concept created by myself and a colleague and we featured one blue chip artist – Richard Hambleton, one emerging artist – Matt Dosa, and one established artist, Ben Eine.”

66 September 2020

Dubai-based Louis Wright started Vandalist Art in 2019

Three tips to invest in the art market 1. Authenticity is of paramount importance. Make sure the artwork comes with a solid reputation and ideally from an established gallery dealer or auction house. Unfortunately there are many fakes in the marketplace, so be aware.

2. Pay the right price. When you are a novice collector, opt to buy from someone or somewhere recognised within the industry. They will not want to damage their reputation by overpricing the work.

3. Timing is everything. An artist’s value can skyrocket, or equally plummet, so seek good advice from someone who understands the market and has inside knowledge about values and trends.

At around the same time, he started his own business called Fortune Favours Art (FFA) and brought it into the UAE market looking to tap potential within the region.

FFA focused on Arabic artists, as well as emerging and established artists. While that initial venture didn’t go the distance, Wright decided to go back to the drawing board and focus his energy exclusively on just one art form – street art.

He rebranded FFA and christened it Vandalist Art in 2019, a venture that would be dedicated to the genre of street art. Showing at World Art Dubai a few months later, he won the Best Art Gallery. That he had on display works from the likes of Banksy, Richard Hambleton, Conor Harrington, Ryca, Osgemeos, Martin Whatson, Nick Walker, Pure Evil and Ben Eine, helped propel the credibility of his street art business.

Artists like Ben Eine are already familiar names within the UAE. In 2015, he unveiled a mural on the British Embassy wall in Abu Dhabi and his work has previously been presented to the likes of Barack Obama and Sheikh Nahyan bin Mubarak Al Nahyan too.

Soon, Wright extended Vandalist Art’s services to include live events. “World Art Dubai led on to Urban Art DXB. We had 10 artists painting on one wall, each painting their individual murals which turned into one big 20-metre mural. The wall at the end of the event looked amazing.”

This year was supposed to be the year that Vandalist Art finally got a strong foothold in the market. The coronavirus pandemic changed all of that. “We had several events booked in for this year including Sikka Art Fair, World Art Dubai and the Dubai International Boat Show and even our own art show. But then coronavirus happened and everything slowed down.”

Wright didn’t let the lockdown dampen the business plans altogether – he used the period to conceptualise a new online extension of Vandalist Art called Red Dot Rooms – a name borrowed from the fact that a red dot is placed on a painting at an exhibition once it has been committed to a buyer.

“It will be an exclusive online membersonly portal. The point [of charging for] the membership is to give you that exclusivity.

You can only view the collection if you sign up to it.”

But the USP for Red Dot Rooms will be the integration of VR and augmented reality into the virtual gallery. gulfbusiness.com

“T

Street artists at work in Dubai

“For the digital tours, you can log in from your own device. We will also be incorporating virtual reality, which will basically mean that you can put on a headset and virtually be in our room. The augmented reality element of it is introduced by way of taking pieces from the virtual art room and projecting them against the wall in your own home or office so that you can view how it will look in that space before you purchase it.” Wright says that they are even planning VR events in Dubai for Red Dot gulfbusiness.com

Rooms. So instead of going to a gallery and viewing the artwork on the wall, his team will hire out spaces, purchase virtual reality headsets, and then have an open-door exhibition where the artwork can be viewed solely using those VR headsets. However, those events will only happen by 2021.

Red Dot Rooms is expected to launch this month with Pure Evil exhibiting his work on it – but Wright won’t reveal just yet the other artists that will subsequently be shown on the platform.

here’s a great book called The Value of Art and it explains that everybody who purchases art is motivated by 1) a true genuine love [for art], 2) its investment value, and 3) the social prowess or the fact that it is a talking point amongst friends. It’s very rare to find a real true collector that’s not stimulated by all three of those things,” says Wright, who also has an art consultancy business with clients spread across the UAE and Saudi Arabia.

He adds that although he doesn’t personally know artists like Banksy whose works can easily fetch $150,000, he does have access to their work and says that he can source the works of any street artist should clients request it.

He confirms that he recently sold a Richard Hambleton in Dubai for GBP45,000, but the most expensive piece he has sold was in the UK for GBP600,000.

Wright himself owns over 100 pieces of art and says that 50 per cent of his investment portfolio comprises of art.

This month, he has initiated the process to take Vandalist Art to Saudi Arabia. Since Wright does not have a gallery of his own, he works closely with The Cave Gallery in Dubai’s d3 district, which also intends to enter the kingdom alongside Vandalist Art. For now though, until those expansion plans take shape, Red Dot Rooms will target clients in the UAE and the UK and the e-commerce platform on it will facilitate online sales as well.

Regionally, the artist that Wright is following closely right now includes Makkahborn Majeed Ahmed, who held the Guinness Record for the longest glow in the dark wall art undertaken in Ras Al Khaimah.

Wright says that the value of the work from street artists is determined by demand and supply of their work, cautioning that a glut from them could result in a sharp decrease in the value of their work.

However, a key factor that determines the price of an artwork is its performance in auctions, and for now at least, street art hasn’t become commonplace within regional auctions.

“Street art is massively growing here,” he says.

“We’ve got a long way to go in educating people in Dubai on the true value of art before we start to sell Banksys in an auction over here.”

September 2020 67

Lifestyle / Technology

Game on: Esports picks up pace in the region Esports could inject hundreds of millions of dollars into regional economies

BY DAVID NDICHU

A

PHOTO: EAMONN MCCORMACK/FIFA VIA GETTY IMAGES

dvocates of esports in the Middle East have their work cut out if their vision of the industry realising its potential is to be actualised.

There’s growing enthusiasm for esports, including a competitive gaming scene that is starting to flourish. A number of internationally competitive teams have emerged in the region including Nasr Esports, Yalla Esports in Dubai and Fate in Jordan.

With the region boasting a large young population – in Saudi alone, those under the age of 35 make up over two-thirds of the population – the Middle East provides both a potential source of gamers as well as a mass audience.

However, the region is held back by various obstacles, including a dearth of related infrastructure. Top esports events are held in massive arenas with thousands of people, while millions watch them online. That requires not just physical venues, but also dedicated TV channels, streaming services, mass media participation, and more.

To get to that level of professionalism

requires a vast grassroots ecosystem, something that is lacking in the region, observes Sam Cooke, MD and co-founder of Esports Insider, an esports B2B focused media and events platform and agency.

This will ensure a homegrown feeder system for teams, as well as the creation of teams and the fostering of new generations of both players and fans in the region.

“Such a system will better legitimise esports in wider society too,” Cooke adds.

The second obstacle is the lack of reliable data on the number of players, the platforms they use and the audience breakdown.

“The lack of data makes it difficult for potential sponsors to identify where to spend their money on and for international

Saudi Arbia’s Mosaad Aldossary (Msdossary) reached the FIFA eWorld Cup Final in 2019 at the O2 Arena in London

esports stakeholders to fully explore the region,” says Cooke.

Like in mainstream sports, corporate sponsorship is the mainstay of esports.

The top teams and events attract millions in sponsorship, such as the recentlyannounced $144m Nike sponsorship of the League of Legends Pro League.

A few corporates in the region are starting to dip their toes into esports, including Orange’s sponsorship of Fate esports and Lenovo’s deal with Nasr esports.

The gaming industry is today worth more than movies and music combined The regional space is also very fragmented with different languages, and varying levels of IT infrastructure development, Cooke notes. “There’s also a lack of regional game developers who can create locally-relevant games,” he adds.

Esports Insider is doing its part to drive momentum. Its ESI Digital Summer virtual event this August featured regional-focused panels to discuss opportunities and challenges in the industry. Panellists included Nizar Abu Karaki, Orange Direct Marketing and Sponsorship manager, Jordan; Mohammad Majali, founding partner, Fate Esports; Klaus Kajetski, founder and CEO of Yalla Esports; and Lalit Vase, club director of Nasr Esports, among others.

MULTI-MILLION-DOLLAR OPPORTUNITY

The gaming industry is today worth more than movies and music combined, according to industry figures. Esports, the competitive side of gaming, is worth about $1bn per year, Cooke notes. League of Legends, CS:GO, PUBG Mobile, Fortnite and other popular games are played by millions of passionate gamers worldwide.

Mobile gaming is the fastest growing segment, both at the leisure and professional levels, primarily because of easier accessibility. “PUBG Mobile, one of the most popular franchises, recently announced a $2m esports tournament,” Cooke observes.

68 September 2020

gulfbusiness.com

PARTNER CONTENT

MercedesAMG GLE 53 4MATIC+ Coupé

Buckle up The new Mercedes-AMG GLE 53 4MATIC+ Coupé is a thoroughbred AMG machine where performance is everything

T

here’s a marked distinction between SUVs and sportscars – not only in their appearance, but also in their performance. Merging the notion of the two, one cylinder at a time, has been AMG which has always put performance metrics including speed, power and lap timings at the core of what it does.

We’ve seen that AMG magic with the GLE 43 Coupé back in 2015, and now replacing that model is this Mercedes-AMG GLE 53 4MATIC+ Coupé which recently made its UAE debut.

The fastback silhouette of the frame is a strong indicator that this is an AMG machine, which although built on a full-sized SUV platform, was designed to be an aerodynamic wind-cheating machine.

There are more AMG touches including the large air intakes in the front, a splitter in silver chrome, and muscled wheel arches that can house wheels between 20-22 inches.

At the rear, the AMG exhaust twin-tailpipe are in chrome, but opt for the AMG Night package and you’ll have those four pipes in black.

For aural drama, choose the AMG Performance exhaust system where at the touch

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of a button you can shift from discreet, muted sounds to full-throated howls.

Inside the car, you’re reminded that this is an AMG not only by way of the lettering found across the interiors including on the seats and floor mats, but also by the presence of carbon fibre on the dashboard, aluminium shift paddles behind the Nappa leather-wrapped steering wheel, and a socially-responsible Artico man-made leather used on the seats held together with red stitching.

The voice-operated MBUX infotainment system is available via the screen which includes the instrument cluster and multimedia display. Together, they occupy nearly half the length of the dashboard.

But the calling card of any AMG is always its engine. With this car, you’ll find a track-primed 3-litre twin-turbocharged six-cylinder in-line engine. Each AMG engine is handcrafted, with a dedicated engineer assigned to it from start to finish while building it in Affalterbach.

The engine produces 320kW (435hp) of power and a maximum torque of 520Nm. Its EQ Boost starter-alternator mechanism pushes an additional 16kW (22hp) of power and 250Nm of torque for short bursts of

instant power while the combustion engine prepares to launch itself.

The result is that the car is capable of barrelling from 0-100kph in 5.3 seconds, helped by a nine-speed transmission, while it climbs to a limited top speed of 250kph.

As with all AMG machines, vehicle dynamics are of paramount importance too. The GLE 53 has seven drive programmes: Slippery, Comfort, Sport, Sport+, Individual, Trail and Sand – the latter of which is vital in this region.

While Comfort and Slippery will be gene rally employed during everyday city commutes, Sport and Sport+ modes lower the cars by 15mm (alternatively, the car can also be raised by up to 55mm while stationary or driving at speeds of up to 70kph).

More seasoned drivers can, however, select the Individual mode where they can manually tweak the settings to specify engine response, steering, transmission, engine sound and suspension damping.

To ensure that the mechanics override foolhardy choices behind the wheel, the AMG Active Ride Control can automatically toggle through over 1,000 settings a second to, for example, reduce body roll. There’s always the large 400mm ventilated brakes discs upfront (and 345mm at the rear) to decisively bring proceedings to a halt.

To anyone who asks a customer to choose between an SUV and a sportscar – the GLE 53 Coupé is a keen reminder that, in reality, they can have both.

To learn more visit mercedes-benz-mena.com

June 2020 69

Lifestyle / Auto Maserati Ghibli Hybrid

Leading the charge Maserati’s Ghibli Hybrid is the carmaker’s first-ever hybrid – and there are more to come

BY VARUN GODINHO

A

fter a nearly 106-year run of developing high-powered ozonedenting combustion engines, Italian carmaker Maserati is steering itself into a new direction – one where it sees hybrids and even fully electric vehicles as an integral part of its lineup.

Throwing a spotlight on that green future is this Maserati Ghibli Hybrid – the very first hybrid from the automaker and one that kickstarts its “electrification programme.” As part of that programme, it will manufacture a range of electric and hybrid cars at its headquarters in Modena as well as in Cassino and Turin in Italy.

The Ghibli Hybrid is developed by the Maserati Innovation Lab in Modena and manufactured in Turin. The decision to run with the Ghibli as its first hybrid is noteworthy considering that the Ghibli has sold over 100,000 units since it first debuted in 2013.

For comparison, consider that the GranTurismo, which was discontinued last year, sold a total of 40,000 units from 2007 until 2019.

Maserati has introduced a mild hybrid system whereby you still have a 2-litre fourcylinder engine, combined here though with a 48-volt alternator, besides an electric 70 September 2020

supercharger e-Booster backed up by a battery. That battery is placed at the rear of the car, and the overall weight of the hybrid is still 80kgs less than the diesel version of the Ghibli (which this hybrid model is effectively replacing). As Maserati says, it will be “faster than diesel, greener than petrol.”

The Ghibli hybrid doesn’t relegate power to an afterthought. You’ll still get 330hp of power, and 450Nm of torque from as low as 1,500rpm. It also has a 0-100kph timing of 5.7 seconds and a top speed of 255kph.

The exterior styling remains largely the same as the existing Ghibli with the notable addition of blue along the air ducts, brake callipers and in the interiors of the car.

The screen size on the dashboard has been increased to 10.1 inches, while the instrument panel also features fresh graphics.

It will be available in the GranLusso and GranSport variants and will enter production this month, and is expected to reach showrooms beginning October.

Alongside its electrification programme, Maserati is also developing its autonomous driving capabilities. All new Maserati models will have a degree of autonomous driving capabilities beginning with Level 2

which provides highway assisted driving, to Level 3 that involves hands-off driving and finally towards complete autonomous driving capability.

The Quattroporte and the Levante are expected to get the hybrid treatment next.

We’re not a long way from the first all-electric models from Maserati too. Production on the 100 per cent electric GranTurismo and GranCabrio are expected to commence later this year at a new facility in Modena where Maserati parent company, Fiat Chrysler Automobiles (FCA), will pump in EUR800m to prepare the production line for the electric models.

While Maserati cracks on with its electric programme, it is also continuing to hone its combustion engines. Its all-new MC20 sportscar will featue a Nettuno engine with

The Ghibli hybrid doesn’t relegate power to an afterthought. You’ll still get 330hp of power F1-inspired tech, and will produce 730Nm of torque and 621hp of power, figures which will likely make it Maserati’s most powerful ever production car.

For the moment, it has already lifted the cover off its new Trofeo collection – globally unveiled a few weeks ago by Dubai-based social media powerhouse Alex Hirschi, aka Supercar Blondie. All of the three models under the Trofeo umbrella including the Levante, Quattroporte and Ghibli are equipped with petrol V8 engines and have top speeds in excess of 300kph while generating 580hp of power and 730Nm of torque.

For Maserati, the pivot towards electric engines will be carried out in parallel to the development of race-primed combustion engines. When the former becomes the latter, Maserati can pat itself on its back. gulfbusiness.com

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Lifestyle / Travel

An African tale Salvage your safari plans with a trip to the Mara, and then wind down with a short hop to Zanzibar

BY DAVID NDICHU

through the river without having to swim, making themselves vulnerable to the massive Mara crocodiles, who are lazily basking on the river banks having feasted for a couple of months. There are daily river crossings.

At this time, there will be far fewer crowds and it is significantly cheaper. You can witness this phenomenon from a hot air balloon or on a game drive. Accommodation is available in the resorts that dot the reserve as well as neighbouring conservatories.

The Masai Mara National Reserve is a 940-square-kilometre stretch of protected area for wildlife. The Serengeti is even larger at 14,750 square kilometres.

Emirates resumed service to Nairobi on August 1.

Z A N Z I B A R , TA N Z A N I A

If this is the year you had planned that safari trip of a lifetime to the Masai Mara, the outbreak of Covid-19 and the resulting travel restrictions must have been frustrating. But fret not, there’s a chance you can still salvage your plans.

The draw of the Mara is, of course, the annual animal migration. What people associate with the migration surrounds the spectacle around the Mara river as almost two million wildebeest, gazelles and zebras brave the Nile crocodiles lying in wait to cross the river to the lush greenery on the other side. Thousands are eaten, crushed or drowned in the crossings. Those that do make it to the other side face further peril from lions, cheetahs, leopards, hyenas and jackals eyeing easy pickings.

However, the migration is not a single event, but a year-wide mass movement of animals within the Masai Mara (Kenya)Serengeti (Tanzania) ecosystem.

Those same animals must make the journey south to the Serengeti again. This happens around October-November when rains start falling on the Tanzanian side and the grass is green again.

At this time, you can catch the animals, still in their masses, around southern Masai Mara and northern Serengeti as they make the reverse trip to Tanzania. The sight of over a million animals spread over a landscape as far as the eye can see is one to behold.

The Mara River tends to be lower in October. Herds can be seen splashing easily 72 September 2020

Zanzibar’s long history and influences have created one of Africa’s most interesting cuisines

Since you are already in East Africa, why not combine your safari with a beach vacation?

Beach vacations in Africa do not get more exotic than Zanzibar, an archipelago 37 kilometres away from mainland Tanzania.

For centuries, Zanzibar acted as a base for traders from the African Lakes region, India and the Arabian Peninsula. The island became a hub for the region’s spice trade.

The sultanate of Oman ruled Zanzibar for centuries, and the population is almost entirely Muslim with Swahili being the main language.

Transit to Zanzibar by plane or boat, departing in most cases from Dar es Salaam.

PHOTOS: GETTY IMAGES

M A S A I M A R A , K E N YA

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Choose the ferry as it is cheaper and can be a far more pleasant experience. The highspeed boats run four times a day each way and take about two hours.

Dar airport is on the outskirts of Dar es Salaam and the harbour/ferry port is in the middle of the city. Traffic in the city can be daunting and it could take you two hours or longer by taxi from the airport to the ferry port. The wait will be worth it though.

For the ultimate beach escape, head north to Nungwi and Kendwa, where many gulfbusiness.com

Clockwise from top: Nearly two million wildebeest, gazelles and zebras cross the Mara river twice a year; Zanzibar's UNESCOprotected Stone Town

all-inclusive resorts are to be found. Go snorkelling or diving in the crystal-clear waters, or, if you prefer staying above the surface, try your hand at kitesurfing.

Although the beaches are gorgeous, you should spend as much time exploring as lying in the sand.

Start with Stone Town, declared a UNESCO cultural heritage site in 2000 – and explore the breathtaking 19th-century architecture of the area. Life passes slowly in Zanzibar so let yourself get lost in the September 2020 73

Lifestyle / Travel

Passengers to face an altered travel landscape post-Covid Touchless technology will be crucial in restoring passenger confidence in air travel

A Nungwi Beach in Zanzibar Island

maze of the town’s winding alleys. Stone Town is small and safe so you’ll find your way home, eventually.

For a sample of local cuisine head to Forodhani Park, or discover how the sultans relaxed at the Hamamni Persia Baths.

Zanzibar’s long history and influences have created one of Africa’s most interesting cuisines combining Indian, Arab, Chinese, Portuguese and African cooking traditions.

African ugali, Indian chapatti, Swahili curries, and of course, fresh seafood. The common denominator is spice (another name for Zanzibar is Spice Islands). Cloves, cinnamon, black pepper and nutmeg are found aplenty.

If you want to try these recipes at home, head to the Darajani market, the main Bazaar, where locals shop for groceries.

Zanzibar also offers a chance to get close and personal with nature. Pick between Zanzibar Butterfly Centre, Mnarani Marine Turtles Conservation Pond or Cheetah’s Rock, an accredited animal rescue and conservation centre, where, as the name suggests, cheetahs and other animals mingle freely with guests. The Kiwengwa Pongwe Forest on the eastern shores of Unguja hosts the Kiwengwa Caves, naturally-created caverns teeming with bats.

Kenya Airways has direct flights from Nairobi to Dar es Salaam and Zanzibar. Emirates flies directly from Dubai to Dar es Salaam and Zanzibar as well.

74 September 2020

ir travel will feel different in a post-Covid world.

As air travel recovers from the devastation wrought by the coronavirus, the industry will need to re-establish the confidence of passengers to revive demand. Low-touch solutions, in addition to hygiene, sanitisation and screening measures, will be critical in restoring passenger confidence in flying and stimulating demand for air travel.

Low-touch travel will be critical in helping passengers limit physical contact with airport surfaces, in turn facilitating a safe journey through the airport, says Jihad Boueri, vice president of Airports and Airlines for the Middle East, India and Africa at SITA. “Accordingly, airlines and airports are going to need the adaptability and automation offered by digital transformation to

The passenger journey will become more automated and touchless

SITA Smart Path uses biometric technology to verify a passenger’s identity

ride out the pandemic’s fallout, adjust their business models and succeed in the future,” says Boueri.

By enabling passengers to use their smartphones to check-in bags and navigate through the airport, you eliminate the need to touch surfaces and interact with other agents.

Automation is of paramount importance, says Boueri. “Contactless, self-service technologies at every step will facilitate passenger flow, cutting queues while ensuring a social distancing-friendly passenger experience,” he adds.

SITA, which has supplied technology for airports and airlines for years, provides solutions that enable passengers to take charge of their journey, right from checking-in their bag using their mobile to simply having to scan their face to board an aircraft.

SITA Smart Path is a good example of touchless technology currently in use at airports around the world today. This uses biometric technology to verify a passenger’s identity to create a secure digital travel ID that can be used from the self-service checkin to boarding, minimising the need to touch any airport hardware, explains Boueri.

Beyond passenger processing, SITA Smart Path also enables hands-free and touchless duty free shopping without the need to retrieve and show a boarding pass. “This significantly improves the customer experience making duty free shopping quicker, contactless and convenient,” Boueri says.

SITA Flex, which has been implemented at San Francisco Airport, is another good example of technology that enables a full mobile and touchless passenger journey.

“By allowing passengers to print bag tags directly from their mobile phones, this technology gives passengers control over their journey through the airport and creates a safe environment for passengers to restore their confidence in travelling following the pandemic,” Boueri says.

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