SME Advisor ME - October 2012

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Issue 83 october 2012 WWW.SMEADVISOR.COM

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The SME Advisor Stars of Business Awards are back and bigger than ever. smeadvisor.com/ awards2012

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PUBLICATION LICENSED BY IMPZ

Publisher Dominic De Sousa Group COO Nadeem Hood

It’s that time again

I

t’s that time of year again. We are fast approaching the organised chaos that is GITEX – five days encapsulating the very essence of ICT and the bustling community it represents.

For many SMEs operating within the IT world this is the pivotal point of the year, where more business can be agreed upon in one week than at any other time of the year.

Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL Senior Editor Mike Byrne mikeb@cpidubai.com +971 4 440 9105

Making its first official appearance this year will be the SME Zone, a new tailored section of the conference dedicated to providing SMEs with ICT SME success stories and glean insights from a range of carefully selected experts from around the world.

Sub Editor Joumana Saad joumana@cpidubai.com +971 4 440 9115 Contributing Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 4 440 9133 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 Business Development Manager Pankaj Sharma pankaj@cpidubai.com +971 4 440 9120 PRODUCTION AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Design Director Ruth Sheehy ruth@cpidubai.com Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9107 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 Photographer Jay Colina jay@cpidubai.com +971 4 440 9141 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developer Abey Mascreen online@cpidubai.com +971 4 440 9100 Published by

After last year’s trial run, it is predicted that this year will provide even more success and maximise return on investment, by facilitating engagement between MEA SMEs and a high concentration of influential investors. SME Advisor will be an Official Media Partner for the project and will be on-site throughout the week to engage, inform and network with as many of you as possible, so do keep an eye out for us.

Also on schedule for the coming weeks will be a second SME Advisor Success Series day, this time to be held in Abu Dhabi. After conducting a very rewarding trade event in Ras Al Khaimah in late September, in partnership with Ras Al Khaimah Free Trade Zone, we are bringing a similar format to the capital in early November. Details will be forthcoming so visit www.smeadvisor.com/successseries for continued updates.

This month’s edition of the magazine has quite a mixture for you to read over; a new survey by company setup specialist Virtuzone shows a strong level of confidence among small businesses in the UAE, as well as some insight into the rising trend of entrepreneurial eco-systems beginning to flourish across Dubai. These workspaces are becoming popular with young entrepreneurs and professionals, as well as the creative types seeking informal environments to work.

Operations management is integral part of the running a sustainable and successful business but, as demonstrated columnist John Lincoln, it is not something being afforded enough attention by many SME owners and management. He gives the breakdown of what should be monitored and how these elements can be deployed without excessive hindrance on dayto-day processes. We also continue to track developments surrounding corporate governance and the implementation of some much needed practices and procedures by the region’s SMEs. You can read the legal updates on pages 36 – 38.

And finally...due to popular request we have also extended the deadline for the submitting your nominations for the SME Advisor Stars of Business Awards 2012. We have allocated October 25th as the cut off point, with the Summit and Awards now re-scheduled for December 5th on Yas Island, Abu Dhabi. To enter your nomination and for all updates on the event, please visit www.smeadvisor.com/awards2012 Until next month...

1013 Centre Road, New Castle County, Wilmington, Delaware, USA Branch Office PO Box 13700, Dubai, UAE

Mike Byrne Senior Editor

Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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Talk to us: E-mail: mike@cpidubai.com

Twitter: @SMEadvisorME

Facebook: www.facebook.com/SMEadvisor

LinkedIn group: www.tinyurl.com/smeadvisorme

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Trade

Contents

20 | All in the family Dr. Ashraf Mahate of Dubai Exports explains how family owned businesses can use their size and ownership structure to their advantage.

Issue 83 October 2012

SUCCESS SERIES

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24 | Best practice trade

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Complete coverage of the SME Advisor Success Series event, recently held in conjunction with Ras Al Khaimah Free Trade Zone (RAK FTZ).

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BANKING FOR BUSINESS

28 | A meeting of minds

The Third Middle East SME Forum, presented by ADCB, brought together business leaders from a wide range of industries to discuss the role SMEs play in the regional economy.

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MANAGEMENT

32 | Operations management The manner in which you run your operations can determine if your business is profitable and sustainable, says du’s John Lincoln.

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Zoning in

LEGAL

We take you inside the new SME Zone at GITEX Technology Week 2012

EDITORIAL BOARD 08 | Introduction

We present the SME Advisor Editorial Board for 2012.

Shoptalk

10 | Trends and Updates A quick look at news and events that will impact SMEs in this region.

SME about town

16 | Events

A round-up of the key events being attended

by SME leaders in the UAE.

CORPORATE LIFESTYLE

18 | Executive trends

We give you a glimpse at some of the latest products on the market.

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36 | Corporate governance Ahmed Ibrahim of Al Tamimi & Co., gives a breakdown of practices and procedures being adopted by companies in the region.

ENTREPRENEURSHIP

40 | Positive prospects

A new survey by company setup specialist Virtuzone shows a strong level of confidence among small businesses in the UAE.

42 | Creative spaces As the entrepreneurial eco-system flourishes in Dubai, Joumana Saad takes a look at a few workspaces becoming popular with young professionals and creative types.

INDUSTRY WATCH

46 | The digital divide A recent Booz & Company report finds that developing countries must double their level of digitisation to catch up to mature economies.

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48 | Export growth

54 | Talk of the town

Ernst & Young has forecast exports from the Middle East and Africa region to grow by more than 12% over the next ten years.

A preview of the latest IT trends and products to be showcased at GITEX Technology Week 2012.

50 | Property prices Real estate markets in Abu Dhabi and Dubai may expect prices to adjust further with the arrival of more supply, according to new market research.

GITEX

52 | Zoning in Joumana Saad brings you all the details on the SME Zone, which is set to make its debut at GITEX this year.

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TECHNOLOGY FOR BUSINESS

60 | Tech news

We highlight IT trends and tools that are reshaping business in the region.

Sign off 

66 | What’s next?

SME Advisor Sub Editor Joumana Saad takes the pulse on key business trends in the region and gives an update on upcoming events to add to your calendar.

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October 2012

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EDITORIAL BOARD 2012

SME ADVISOR

Amna Sultan Al Owais Deputy Registrar & Small Claims Tribunal Registrar, DIFC Courts

EDITORIAL BOARD The SME Advisor Editorial Board is an honorary advisory panel of experts comprising organisations and individuals who want to help regional business. The idea is to evolve the magazine through such sharing of ideas with key regional influencers. Over the next few months, we will conduct various interactive sessions with our board members, often including our readers, where we can collaborate and share ideas. The aim is to help the business community benefit from our panel’s expertise.

Dr. Ashraf Mahate Head of Export Market Intelligence, Dubai Exports, and Vice Chair of the Economic Policy Committee, Dubai Economic Department

Dr. Ashraf Mahate is the Head of Export Market Intelligence at Dubai Exports (formerly known as the Dubai Export Development Corporation), which is an agency of the Dubai Economic Department. He is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Department. He has written a number of journal articles, chapters in books and edited books in the areas of economics, finance and banking. Dr. Mahate has provided extensive consultancy services to various organisations in the areas of banking, economics and finance. He has been a director of a number of companies including a venture capital company and a private equity fund.

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July 20122012 SME ADVISOR Middle East East October SME ADVISOR Middle

Amna Sultan Al Owais joined the DIFC Courts in October 2006. In her role as Deputy Registrar, Amna undertakes judicial functions and other duties prescribed in Article 17 of the DIFC Courts Law No. 10 of 2004.

Amna’s role supports the judicial bench and Registrar in the management and day- to-day administration of the DIFC Courts. In addition to her contribution to the Courts operations, planning and communications, she has a critical technical mandate, which includes case management and legal research responsibilities.

Another aspect of Amna’s position at the DIFC Courts is focused on overseeing the Small Claims Tribunal, one of the busiest of the DIFC Courts. In this role, she coordinates all of the claims lodged and often undertakes consultation for some of the cases filed. Previous to her employment at the DIFC Courts, Amna was in practice as a lawyer for Hadef Al Dhahiri & Associates, in Dubai.

David Burns COO, British Business Group, and Director of Marketing and Corporate Communications, UHY

David is the Director of Marketing and Corporate Communications for an independent office of UHY, an international firm of auditors and accountants. His current UHY activities include the PR and marketing of four offices in the UAE and the business development for the firm in general. David is also the COO of the British Business Group in Dubai and the Northern Emirates, and is responsible for the overall administration of the group’s activities and an office based in the grounds of the British Embassy in Dubai. He has been involved with SMEs in the region for 35 years.

Alexander Blass

John Lincoln

President and CEO, Alexander Blass International

Vice President, Enterprise Marketing, du

Alexander Blass is an American entrepreneur and innovator who has travelled to over 40 countries and appeared in hundreds of media outlets, including several cover stories.

He is the grand prize winner of the Daily Record’s Top Innovator of the Year Award.

He presently serves as CEO of Alexander Blass International, an executive training and consulting firm.

Alexander keynotes some of the world’s most prestigious conferences on topics including innovation, creativity, leadership change, business development and entrepreneurship. Examples include the Abu Dhabi Innovation Forum, the SME Advisor Stars of Business Awards in Dubai and the European Conference on Creativity and Innovation.

John Lincoln has over 20 years telecommunications experience in the USA, the UAE, Japan, Europe, India, Malaysia, Latin America and various other countries. He has extensive senior expertise in international telecommunications sales, marketing, business development and customer service delivery.

John also has executive experience with general management, marketing, product development and revenue management responsibilities in both consumer and enterprise segments for both the fixed and mobile sectors. Additionally he has extensive large scale business development, M&A and operational project experience across the USA, Europe, Asia and Latin America. John has an MBA and MS in telecommunications from the Golden Gate University in San Francisco, California, USA.

Ghada Audi

Abdulmuttalib Al Hashimi

Head Of Disputes Resolution, Fichte & Co

Founder and Managing Director, Next Level

Ghada joined Fichte & Co in 2012 as Head of Disputes Resolution, from the DIFC Courts and Special Tribunal Related to Dubai World.

Her practise areas include international commercial arbitration, mediation, as well as DIFC litigation, regulatory, compliance and insolvency.

She has experience on three continents, having practised law in the USA, Germany and the UAE, enabling her to bridge business cultures and tailor legal solutions and strategies to multi-jurisdictional clients’ needs.

She is a registered practitioner with the DIFC Courts in Dubai and is a member of the USA Bar in New York and Virginia.

Abdulmuttalib Al Hashimi is a UAE national entrepreneur, Managing Director and Founder of Dubai-based Emiratisation consultancy, Next Level. He founded the company in 2006 and under his leadership Next Level has helped more than 30 companies in the UAE on their Emiratisation recruitment and human resources needs. The company has so far helped employ at least 100 UAE nationals and around 200 international employees in various positions.

Abdulmuttalib is a regular speaker in conferences, such as the GCC Nationalisation Conference, the UAE Career Fair in 2009 and the Abu Dhabi Business Round Table conference.

SME ADVISOR Middle July SME ADVISOR Middle East East October

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shoptalk

Dubai eGoverment officials met with the Seiko Epson delegation during their recent visit to the region.

UAE

Dubai eGovernment receives Seiko Epson delegation

H

E Ahmed Bin Humaidan, Director General of Dubai eGovernment, recently received a delegation from Seiko Epson Corporation as part of an ongoing thrust to foster cooperation and a healthy exchange of experiences between both parties. The visiting delegation was headed by Minoru Usui, President of Seiko Epson Corporation, who was accompanied by senior executives of Epson. Also present during the meeting were Matar Al-Humairi, Director of Infrastructure Management

Department, and Sumaia Hammad, Director of Communication & Business Development Department at Dubai eGovernment.

The visit was part of a series of highprofile meetings with public and private sector organisations during the Seiko Epson President’s visit to the region. The delegation was introduced to Dubai eGovernment’s methodology in offering integrated eServices to other government authorities under the highest international standards that support government integration, while driving the digital transformation of the

society in line with the government’s strategic objective of strengthening Dubai’s position on the world map.

“We are pleased to have received the delegation from Seiko Epson Corporation, a leading company with a modern vision to leverage innovative, worldclass IT technology to serve the society and build strategic partnerships with both public and private sectors,” said HE Bin Humaidan. This visit reflects Dubai eGovernment’s strong commitment to share with government and private sector entities from all over the world our expertise in eGovernance, which has become a regional and international reference and guide for other governments.”

For his part, Minoru Usui stated that the visit was a great opportunity for Seiko Epson to have a closer look at Dubai eGovernment’s methodology in adopting best practices and utilising best-of-class expertise in developing and providing eServices to the public. Moreover, it provided insights on the government’s efforts to facilitate the transformation towards a digital society, while reaffirming the impact of the IT industry in the lifestyle of UAE residents.

Usui also said that Seiko Epson is eager to learn more about various government initiatives in the UAE and across the Middle East that encourage the private sector to contribute more in the long-term development of the society, particularly in establishing an integrated digital environment. “Epson is steadfast in its commitment to promote the optimal use of sophisticated technology to create innovative, high-value products for our clients and the community as a whole. This complements our Customers First strategy, which is also espoused by Dubai eGovernment,” he added.

Arab-Brazilian trade remains robust Arab countries imported more than USD 3.6 billion worth of goods from Brazil during the first half of 2012, while Arab exports to Brazil reached nearly USD four billion during the same period, reaffirming the importance of Brazil as a key trade partner of the Arab world. Brazilian exports to Arab countries mainly consisted of sugars, meat, ores, slag, ash and cereals, while Arab exports to Brazil included mineral fuel, oil and fertilizers.

According to the Arab-Brazilian Chamber of Commerce, the Kingdom of Saudi Arabia, the region’s largest economy, remains the leading trade partner of Brazil in the Arab world. KSA had more than USD 720 million

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in imports and over USD 1.4 billion in exports to Brazil during the first half of 2012. The UAE has also been a major trade partner of Brazil with more than USD 489 million in imports and over USD 65.6 million in exports.

Egypt ranks second among the top Arab importers of Brazilian products with more than USD 674 million in imports in the first half of 2012, while Egyptian exports to Brazil totalled over USD 40 million.

Other top Arab trade partners of Brazil include Qatar and Kuwait, which exported products to Brazil worth in excess of USD 362 million and USD 337 million, respectively. On the other hand, Qatar and Kuwait imported products from Brazil worth more

than USD 80 million and USD 64 million, respectively, during the first six months of 2012.

The success of matchmaking events being organised by the Arab-Brazilian Chamber of Commerce underlines the

growing interest of Arab markets in Brazilian products. Moreover, the Arab world will continue to be a major source of mineral fuel, oil and even aluminium products that are vital in sustaining the growth of the Brazilian economy.

DED launches consumer rights conference

L - R: Jehad Kazim, Director, Legal Services Department, Dubai Chamber; and Seng Onn, Executive Director, Singapore Mediation Centre, during the seminar.

UAE

Dubai Chamber hosts seminar on commercial disputes

T

he Dubai Chamber of Commerce and Industry, in association with the Singapore Mediation Centre, organised a seminar entitled Mediation: An Effective Tool for Settling Commercial Disputes at the Chamber head office on 16th September.

The seminar, which was conducted by Loong Seng Onn, Executive Director, Singapore Mediation Centre, was attended by Dubai Chamber members, business owners, legal professionals and government officials. The seminar provided an overview of mediation, differences between mediation and litigation, or arbitration, and also reviewed the benefits of using alternative means of settling commercial disputes, most notably mediation.

In her opening address, Jehad Kazim, Director, Legal Services Department, Dubai Chamber, said: “Mediation, as a way for companies to resolve their disputes amicably, is a concept that is becoming increasingly popular across the Middle East, especially here in Dubai.

Highlighting the benefits that mediation offers, Kazim stressed that it is a confidential process and comes at a low cost compared to that of the courts. “Mediation focuses on the interests of both parties and is a much less aggressive process than litigation. In a nutshell, it is a win-win situation for all parties involved,” she said.

The Director of Legal Services informed that Dubai Chamber received 205 mediation cases in 1996, which went up to 337 in 2000, and then 379 in 2005, and later jumped by a large margin to 1,009 in 2010 but came down to 878 cases, which she says shows the growing awareness of the business community in realising the importance of mediation as an alternative means of settling trade disputes.

Loong Seng Onn, Executive Director, Singapore Mediation Centre, said: “Mediation continues to present itself as a better method for businesses to resolve their disputes as compared to adversarial methods such as litigation and arbitration.

The numerous benefits of mediation such as control over the outcome, significant cost and time savings, confidentiality and the potential to improve relationships are compelling reasons to consider mediation before other dispute resolution mechanisms.”

The Department of Economic Development (DED) in Dubai has announced the launch of the first of its kind Dubai World Conference on Consumer Rights and Power Brands exhibition, which will be held from 1st to 3rd April, 2013, at the Dubai World Trade Centre, with the support of Dubai Refreshment company (DRC) and Al Fajer Information & Services.

The initiative is part of the DED’s efforts towards creating a sustainable economic environment that adopts best standards and policies in protecting consumers and brands, thereby enhancing transparency and impartiality in the retail sector in the Emirate of Dubai.

The conference will focus on strengthening consumer protection, creating awareness on consumer rights and related mechanisms and laws in place, the role of the Commercial Compliance & Consumer Protection Division (CCCP) in the DED and the economic returns and consumer confidence gained from safeguarding consumer rights.

The conference will host a number of international and local opinion leaders and decisionmakers, including executives, government officials, economists and researchers from different industry sectors, and other professionals dealing with consumer protection and brands globally.

The Power Brands exhibition will attract major trademarks worldwide to exchange views and discuss the most prominent concepts related to brands and their promotion.

Standing at the forefront of consumer forums worldwide, the participating companies will seize the opportunity to demonstrate progressive policies and interact with traders and investors, while also enhancing their brand visibility and credibility.

“The conference and exhibition reflect the DED’s efforts to develop the economic sector through adopting appropriate policies and regulations, and identify those sectors witnessing strategic growth. The DED is working to provide the best solutions and services to traders and investors locally and globally, thus enhancing trade flows and the ease of doing business in the emirate,” said His Excellency Sami Al Qamzi, Director General, DED. Al Qamzi added: “The retail trade sector has played an important role in Dubai’s economic development, nearly as important in terms of its direct contribution to GDP and growth. Its value-add grew in real terms at more than 12% on average per year in the last decade and accounted for over AED 15 billion in 2011. The future prospects are quite promising, with growth of the retail value-add forecast to exceed 5.5% annually over 2012-2015.”

DED officials and representatives from Al Fajer Information and Services, and Dubai Refreshments Co. during the launch event.

SME ADVISOR Middle East

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shoptalk KSA

Saudi Arabia banks on agriculture

Over 24,000 visitors from around the world gathered for Saudi Agriculture 2012 and Saudi Agro-Food 2012, which were recently held in Riyadh.

S

audi Agriculture 2012 and Saudi Agro-Food 2012, the biggest business-to-business agriculture and agro-food events in the region, have jointly attracted over 24,000 visitors from all over the world and generated SAR billions worth of projects and

business deals in Saudi Arabia.

Held under the patronage of HE Dr. Fahd Abdulrahman Balghunaim, Saudi Minister of Agriculture, the concurrent exhibitions also included the Saudi Food-Pack 2012, the International Exhibition for Food Processing and Packaging.

The trade exhibitions also collectively gathered over 400 local and international exhibitors from 23 countries that showcased their latest products, technologies and innovations. Riyadh Exhibitions Company, organiser of the concurrent exhibitions, disclosed that the success of the event reaffirmed the strategic importance of such trade exhibitions in facilitating trade activities in the agriculture and agrofood sectors of Saudi Arabia.

Saudi Agriculture 2012 covered all aspects of agriculture and food industries from cultivation, to management, production, packaging and distribution, in addition to a dedicated section for organic farming. In its 31st year as one of the fastest growing industry events in the region, Saudi Agriculture was held concurrently with Saudi Agro-Food and Saudi Food-Pack to feature the latest

products, technologies and services in areas ranging from frozen and chilled foods, confectionery, chocolates, health and natural foods, to presentation, processing and packaging equipment.

Accredited by UFI, the Global Association of the Exhibition Industry, the show has a wide scope and includes animal health and production, agricultural financing, agricultural products and services, chemicals and fertilizers, cold storage, dairy farming products and equipment, fish farming, greenhouses, handling and transport systems, irrigation and landscaping equipment, organic farming, packaging systems and products, pesticides, pumps and pipe systems, seeds and soil nutrition products, spraying machinery, water treatment, water management systems and warehousing, among others.

Investing in infrastructure New research conducted by CBRE, a commercial real estate advisory firm, highlights the Saudi government’s strong focus on infrastructure and social programmes this year.

The CBRE MarketView report finds that the Kingdom’s 2012 budget has allocated USD 45 billion for the education sector, USD 23 billion for healthcare and USD 9.4 billion for transport.

Together with numerous other initiatives, Government spending on non-oil infrastructure is likely to be around 7% higher than in 2011.

About USD 67 billion has been set aside for the construction of 500,000 housing units.

These housing units, which are intended to meet the needs of the lower income sector, will be located around the Kingdom with the first of them currently being masterplanned on various sites totaling 32 square kilometres.

In addition to a trans-Saudi Arabian railway line, the Council of Ministers agreed to implement a massive public transport system for all the major cities. The transport solutions will include both buses and trains and will be first implemented in Riyadh, where phase one completion is expected in 2017. Around 80% of the metro network will be underground and will be served by 34 stations.

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The capacity of Riyadh’s international airport is anticipated to triple to 25 million per annum by 2015 as part of the first phase of planned aviation sector expenditure totaling USD 53 billion.

Saudi Arabia currently has around 53,000 branded hotel rooms (about the same as Dubai), although 32,000 of these are in Makkah and Madinah. In 2011, the Kingdom hosted 15.4 million foreign visitors, of which 10.6 million were travelling as pilgrims.

The number of new branded beds planned to enter the market is however significant, amounting to an increase of around 60% over the next few years according to STR Global.

This is in part a response to the increased capacity of the religious centres in Makkah and Madinah, but also to the increased demand from business visitors and the push to develop domestic tourism.

There has been renewed talk that there may be some movement on one or more of the long-awaited mortgage laws that may, or may not, address the key issue of mortgage security and in particular repossession of properties for non-payment.

There is no indication to date that this key issue has or will be resolved, instead talk has been focused on the potential for mortgage

portfolios to be packaged up as derivative products that may be traded between banks.

Reports indicate that the central bank of Saudi Arabia (SAMA) will publish the new rules on mortgage financing in order to receive feedback before implementation.

In addition, Saudi Arabia’s government has embarked on massive infrastructure spending on both the education sector and the office sector, naturally hoping that, in time, one will satisfy the needs of the other. This comes, as the country is faced with rising unemployment of its youth population.

shoptalk QATAR

Qatar to host World Chambers Congress

BAHRAIN

Bahrain ranked among freest economies

B

ahrain is the most economically free nation in the MENA region, and the seventh freest economy in the world, according to the Economic Freedom of the World: 2012 Annual Report published by the Fraser Institute, a leading international think tank.

The index measures the degree to which the policies and institutions of countries are supportive of economic freedom. Bahrain achieved an overall score of 7.94 out of 10, marking it ahead of the United States and Japan. The other top ten nations are: Hong Kong, 8.90; Singapore, 8.69; New Zealand, 8.36; Switzerland, 8.24; Australia, 7.97; Canada, 7.97; Mauritius, 7.90; Finland, 7.88; and Chile, 7.84.

Bahrain led the rankings in the GCC, followed by the UAE, 7.83; Qatar, 7.70; Kuwait, 7.66; Oman, 7.64; and Saudi Arabia, 7.06.

Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain Economic Development Board, said: “Bahrain’s consistent ranking in first place among other Gulf countries reflects the success of a the Kingdom’s decade of economic reforms to improve prosperity and job creation. The fact this progress has also been translated

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into economic growth, shows our tried and tested regulatory environment and commitment to international standards offer an attractive business environment, particularly for companies looking to access the growing GCC market, which is worth well over a trillion dollars.”

Other recent reports have also highlighted Bahrain’s economic strengths. Earlier this year Bahrain was ranked first place in the Middle East and 12th place worldwide in the 2012 Wall Street JournalHeritage Foundation Economic Freedom Index.

The Fraser Institute’s annual Economic Freedom of the World report is the premier measurement of economic freedom, using 42 distinct variables to create an index ranking of countries around the world based on policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete, and security of private property.

Economic freedom is measured in five different areas: (1) size of government, (2) legal structure and security of property rights, (3) access to sound money, (4) freedom to trade internationally, and (5) regulation of credit, labour and business.

Qatar Chamber, the host of the ICC WCF Eighth World Chambers Congress, has announced the opening of the registration to attend the four-day event that will take place in Doha from 22nd to 25th April, 2013, at the Qatar National Convention Centre.

Chamber representatives and businesses in Qatar and worldwide are encouraged to register now at www.worldchamberscongress.com to receive a 20 to 40% early bird discount.

Being held in the Middle East for the first time and organised by the International Chamber of Commerce (ICC) and the World Chambers Federation (WCF), the Eighth World Chambers Congress will welcome chamber and business leaders from more than 100 countries to develop and strengthen partnerships, exchange best practices, and network with members.

Chamber leaders will also be joined by a peer from each of the world’s 48 least developed countries, as part of the corporate social responsibility (CSR) efforts of Qatar Chamber.

“The Eighth World Chambers Congress is not only an ideal occasion to develop new business opportunities with Qatar and the region’s leading companies, but also to promote worldwide trade and investment opportunities with delegates’ respective countries, regions and business communities,” said Remy Rowhani, ICC-Qatar and Qatar Chamber CEO. “After attracting immense attention on sponsorship opportunities we hope that hundreds of regional businesses, interested parties and media will register to attend the event,” added Rowhani.

Under the theme Opportunities for All, the unique platform will feature dynamic plenary sessions and interactive working sessions on topics at the heart of a chamber’s local and international agenda. These include SMEs and the world economy, education and unemployment, women in business, and youth entrepreneurship.

The World Chambers Competition, one of the most popular Congress sessions, promises new excitement with the inclusion of an additional fifth category.

The Congress will also feature the ICC Business World Trade Agenda Summit, scheduled to take place on 22nd April, 2013.

All delegates are invited to attend the Summit, which aims to make recommendations on business priorities for a 21st Century agenda for world trade.

SME About Town

Understanding angel investing

The power of mentorship

L-R: Ali Borhani, Founder, Incubeemea; Alex Azzi, Co-Founder, SCAS Partner; Salim Akil, Founder, SearchInMENA; Tia Kansara, Director, Kansara Hackney; Ramzi Ghurani, Assistant General Manager, Petra Insurance Brokers.

T

he Mowgli Foundation recently held an event on the power of mentorship in business. Over 65 people from the Dubai, Abu Dhabi, Qatar and Bahrain attended the event, many of them entrepreneurs and others with an interest in starting their own businesses.

Regarding the topic of mentoring, 25% of the audience said they had personally benefited from a mentor, 15% considered themselves to be a mentor to someone else and 10% believed that they had a comprehensive understanding of mentoring.

The evening provided plenty of scope for interactive engagement, participation and learning. Mowgli Founder Tony Bury initiated proceedings, explaining the importance of entrepreneurship and the significance of mentoring to entrepreneurs. He then engaged the audience in a comprehensive introduction to the Mowgli Foundation, the impact that the Mowgli mentoring programmes have had to date and the programmes that we plan to run over the next few months within the Middle East and North Africa (MENA) region.

Each member of the audience was then given the opportunity to personally experience the impact of mentoring. Attendees also

heard from a number of Mowgli mentors and entrepreneurs about their businesses, journeys and thoughts regarding the mentoring programme, the benefits they have experienced and the challenges they typically face as entrepreneurs.

Mowgli Mentor Ali Borhani then took the stage to provide a further dose of excitement and food for thought regarding the importance and far reaching impact that mentoring can have on one’s life whether on a personal or business level.

“As a young entrepreneur, I don’t have all the experience necessary to manage my business in the right way. So, through the Mowgli programme, I found the mentorship very professional and useful. I set my short and long term visions, and milestones to achieve them,” says Salim Akil, Mowgli Mentee and Founder of SearchInMENA. Adding some perspective as a mentor, Ali Borhani, Founder, Incubeemea, shared his advice for young entrepreneurs looking for the right mentor.

“A right mentor needs to have passion, a beaming energy and complimented with an unconventional thinking model. A solid doze of real world business experience is a must and a good sense of humour is a plus,” he says.

Over 50 women entrepreneurs and SME-owners gathered for a seminar on angel investing, hosted by Heels And Deals. Edward Roderick, Managing Partner, Envestors MENA, presented insights and advice in this area of funding.

Roderick shared insights life lessons as an entrepreneur and investor and highlighted the basic criteria that angel investors and venture capitalists look for in a startup or small business.

He also advised entrepreneurs and to first seek funding from family and friends, in order to build up their businesses before seeking funding from banks or investors.

Envestors is currently the only active Business Angel Network in the region, connecting entrepreneurs with investors.

Our expertise lies in determining how best to present a company to investors to give it the best chance of raising investment. The network has advised over 1,000 companies in the last three years, and has selected about 20 to take forward and present to our investors, of which approximately 50% have been funded.

Heels and Deals members who registered early for the event presented two-minute elevator pitches, educating attendees about their businesses. A wide variety of professionals from various industries attended the event, including business owners, managing directors of SMEs, as well as aspiring entrepreneurs.

Launched in Dubai during the challenging economy of 2009, Heels & Deals has hosted nearly 3,000 women at their events. In October 2011, Heels & Deals expanded its local events to Hong Kong. In addition to hosting events, the group also has a virtual community in which members can exchange ideas and advice through its online portal.

To learn more about Heels and Deals and the group’s events, please visit: www.heelsanddeals.org.

Best management practices The role of management and its related change, project and risk programmes were under spotlight at the inaugural APMGInternational Showcase which made its debut in Dubai on 9th September. The event featured case studies and programmes, as experts debated the importance of continuous learning as the answer to sustainable growth, both within individuals and in the corporate market place.

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Speaking at the conference, Alan Harpham, Chairman, APMG-International, a global examination institute, said that leaders are urged to consider the role that effective management plays at many levels, including the organisation and industry as well as on a nation’s economic development. “We believe that organisations must be change and be ready to implement new methods and practices, as well as

support professional education at all levels, if management teams are to be in the best shape to navigate the varied market conditions.”

Delegates were offered insights to the use of management programmes by leading providers of business training and consulting across change, project and risk management. Further insights were provided during the keynote presentations by Ivano Iannelli of

Dubai Carbon Centre of Excellence and Carl Pitts of Etihad Airways.

“Ensuring that management best practices and processes are welloiled is key to continued growth.

We must recognise that our ability to manage our resources is vital for survival,” Harpham concluded.

Senior management delegates from diverse business sectors were also present at the event

by The British University in Dubai (BUiD).

Experts discuss advertising trends

L-R: Panellists at the event included Nadim Samara, General Manager, OMD Dubai; Steve Smith, COO, Arabian Radio Network; Joe Marritt, General Manager, Motivate Publishing; Sarah Messer, Director of Media, Nielsen; Jonathan Labin, Head of Facebook MENA; and Yousef Tuqan, CEO, Flip Media.

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dvertising players in the Middle East often rely on global trends to forecast media developments.

It must be understood that most of these trends are hardly relevant to the region. It is, therefore, essential that we keep specifics in mind when it comes to predicting and planning ahead, according to Nadim Samara, General Manager, OMD Dubai.

Samara’s comments came at a panel discussion on Advertising Trends in the Arab Region: The Present and the Future hosted by

TECOM Investments’ Media Cluster. Held as part of the Thought Incubator series, the debate centred on the rapid shift in new platforms and creative approaches.

The panel featured high profile advertising experts including Jonathan Labin, Head of Facebook MENA in Dubai, Yousef Tuqan, CEO, Flip Media, Joe Marritt, General Manager, Motivate Publishing (Abu Dhabi), Sarah Messer, Director of Media, Nielsen, Steve Smith, COO, Arabian Radio Network,

A closer look at eLearning As leading corporations search for longterm sustainable value creation, the role of tacit knowledge and how to make it explicit and transferrable to current and future generations of people introduces new paradigms about how organisations value learning. The value continuum in corporate learning looks at how it attempts to quantify the return on investment, and how to increase alignment with business objectives through organisational learning.

Waleed Jameel, Business Manager at GAC Corporate Academy, shed light on eLearning, a specific method of cooperative learning that is being adopted by corporations. GCA is the official strategic learning arm of GAC World’s global HR department and delivers learning opportunities

and Nadim Samara, General Manager, OMD Dubai and was moderated by Mamoon Sbeih, Managing Director, APCO Worldwide, Arab Region.

The print industry worldwide is currently facing challenges such as the reduction in overall advertising spend, as well as the migration of some of the major print companies to online platforms. Interestingly and in context to the region, magazines continue to enjoy robust pan-Arab circulation despite their relatively small contribution to the total print advertising spend. “Advertisers are becoming more demanding and consumers are becoming more fickle, and the challenge is upon everyone to evolve their offering, find new ways to grow our industry and deliver value to advertisers,” says Yousef.

Experts headlining the event, however, concurred that the region still faces a mismatch between the share of digital advertising in total advertising spend with regards to the relative importance of the platform from a media consumption angle. A correction of this distortion

to employees throughout the GAC world.

At the discussion held during an event hosted by The Knowledge Café, a bimonthly share best practice event targeting HR professionals, Waleed spoke about organic social eLearning models within his organisation with attention paid to its success and impact.

“As a strategic business unit, the corporate learning organisation must be ROI focused, and have transparent metrics on cost, versus impact. A number of models may be used, with resultant costs and consequences,” Waleed said. He added: “The corporate learning organisation must also have learning effectiveness as the core of its delivery capability. Recycled, generic learning content is ineffective in an information rich internet environment.”

The session addressed various types of pedagogical models and the effectiveness of each. Waleed also introduced the SMART

could, therefore, be the need of the hour, the panellists pointed out.

“Fortune favours the bold, and those that made the leap and engaged with new mediums such as Facebook are now reaping the benefits. They understand what works and what doesn’t, how to interact with consumers, and the role that social plays in the broader sales and marketing mix.

Fortunately it is never too late to get on board, and through our presence in the Middle East, Facebook is working directly with clients to share those lessons and explore new creative opportunities,” says Jonathan.

According to Nielsen’s quarterly Global Ad View Pulse report, advertising spend is on the rise around the globe and across media types. Though TV continues to attract the majority of advertising dollars, Internet advertising saw the biggest increases, with advertisers spending 12.1% more in Q1 2012 than one year prior. During that time, ad spends overall increased 3.1% globally.

approach to rapidly developing effective learning programmes through harnessing internal business intelligence within the corporation.

Created by FranklinCovey Middle East, The Knowledge Café brings the world’s top trainers to the Middle East, with many planned to lead future sessions on topics such as leadership, coaching, communication and team building at this exclusive interactive information sharing and networking community. With numbers capped at 40 to ensure maximum interaction, some of the UAE’s most prominent organisations, including: Americana, DEWA, AW Rostamani, Dubai Airports, Chalhoub Group, DP World, Jumeirah, KHDA and Emaar Hospitality, have all signed up to be part of the bi-monthly think tank. Attendees include senior HR and Leadership and Development professionals, participating in The Knowledge Café in order to learn, share and network.

SME ADVISOR Middle East

October 2012

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CORPORATE LIFESTYLE

Executive trends We bring you a sample of the newest products being snapped up by the executive shopper.

Cutting edge

Jaguar recently revealed the F-Type, an all-new convertible sports car. The new Jaguar F-Type represents a return to the company’s heartland: a two-seat, convertible sports car focused on delivering performance, agility and maximum driver engagement.

The F-Type is a continuation of a sporting bloodline that stretches back more than 75 years and encompasses a heritage of beautiful, thrilling and desirable cars.

The car was revealed in front of the dramatic setting of the 18th Century Musée Rodin. Following the reveal, singer Lana Del Rey took to the stage and performed a new track Burning Desire, that she has written as part of her collaboration with Jaguar for the launch of the new car.

Hassle-free headset

Bond inspired timepiece

To celebrate its seventh performance in a supporting role in a Bond film, Omega is launching the Seamaster Planet Ocean 600M SkyFall Limited Edition watch.

Like every Planet Ocean, the new watch is ready for underwater adventure.

Equipped with a unidirectional rotating diving bezel and a helium escape valve, the watch is water resistant to 600 metres.

The watch has a 42 mm brushed and polished stainless steel case and a matching patented screw-and-pin bracelet whose divers’ clasp is engraved with 007. The rotating diving bezel is distinguished by its matt black ceramic ring with a chromium nitride diving scale.

The Seamaster Planet Ocean 600M SkyFall Limited Edition is powered by Omega exclusive new Co-Axial calibre 8507. SkyFall 007 is on its rotor in blackvarnished engraving. The movement is visible through sapphire crystal in the brushed screw-in caseback.

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Jawbone ERA is the only Bluetooth headset equipped with military-grade NoiseAssassin 3.0, the latest version of Jawbone’s industry-first noise and wind cancelling technology. Originally developed for use by tank commanders and helicopter pilots, NoiseAssassin 3.0 eliminates background noise better than any other headset. It also auto-adjusts inbound call volume and intelligibility to your environment. Whether you’re at a noisy ball game or on the road, you’ll always hear and be heard.

A tablet for bookworms

The newly-released Kindle Fire HD tablet from Amazon (USD 199) is expected to garner big interest from Amazon enthusiasts. The original Kindle Fire tablet introduced less than a year ago was Amazon’s top-selling gadget to date. This new and improved version offers an array of enhanced features including ultra-fast 4G LTE wireless, powered by the latest generation 4G chipset, support, stunning custom HD display with in-plane switching and dual stereo speakers with Dolby Digital Plus. It also features 11 hours of battery life, as well as new Amazon-exclusive features such as X-Ray for Movies, X-Ray for Textbooks and Immersion Reading.

Golf essentials

The Hugo Boss Black Monday Golf Shoe (GBP 185), from the brand’s Autumn Winter 2012 collection, is made from 100% Cowskin and is lined with leather. It also comes with replaceable spikes. The golf shoes are quite comfortable and will take you from the first tee to the 19th hole in fashion. It also sports a Gold Hugo Boss logo on the back.

Trendy travel

Designed with the fashionable traveller in mind, famous Alzer 70 suitcase is one of the Louis Vuitton emblems. Spacious and sturdy, this piece continues to impress connoisseurs around the world. The piece comes with a rounded leather handle and golden brass corners. The suitcase is available in four different sizes and can be personalised with the owner’s initials.

Classic cufflinks Nine Two Five London has launched its debut collection of distinctive sterling silver cufflinks and the innovative designs are certain to add a touch of luxury to men’s shirts around the UK. The brand is based on the famous 925 hallmark, representing the best quality in sterling silver jewellery and the brand strives to produce classic designs with a modern twist. The new collection consists of high quality sterling silver, with designs ranging from the timeless sweetshop favourite Jelly Bean Cufflinks, which are handcrafted from a semi precious stone, to the classic Hollow Cylinder Cufflinks, which due to their simple yet sophisticated appeal are set to become a best seller within the luxury cufflink market.

SME ADVISOR Middle East

October 2012

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Trade

Taking the family brand

abroad

Bringing your family business to foreign markets shouldn’t always be viewed as an uphill struggle. Dr. Ashraf Mahate of Dubai Exports explains the right approach for getting a foothold in global markets.

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Dr. Ashraf Mahate Dubai Exports

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t is commonly assumed that family-owned businesses, which tend to be small or medium sized, lack the resources as well as the know-how to build a brand.

This is especially the case in global markets, whereby entrepreneurs incorrectly assume that their smaller size is a disadvantage.

However, this need not be a disadvantage and familyowned businesses can use their size and ownership structure to their advantage. These firms can create a brand identity to persuade customers to make purchasing decisions based on the perceived attributes of their relatively smaller size and family ownership.

Studies have shown that customers positively view firms who promote themselves as a “family company”.

SME ADVISOR Middle East

Customers tend to perceive family-owned businesses as symbols of success and prestige. More importantly, family-owned brands also tend be more trusted and have been found to reassure the customer.

Furthermore, such businesses inform the customer that there is a real family behind the business with whom they have entered into a relationship with and not simply a faceless corporate entity. As such the family-owned businesses can effectively differentiate themselves in a very crowded market. In global markets the family nature of a firm has allowed them to charge a premium and create niche markets.

At its most basic level, a company’s brand identity is simply a set of promises that define a given level of expectations.

Trade About Dr. Ashraf Mahate is the Head of Expor t Market Intelligence at Dubai Exports (formerly known as the Dubai Expor t Development Corporation), which is an agency of the Dubai Economic Depar tment.

Dr. Mahate is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Depar tment. He has written a number of journal ar ticles, chapters in books and edited books in the areas of economics, finance and banking. He has also presented papers at major international conferences.

Dr. Mahate has provided extensive consultancy services to various organisations in the areas of banking, economics and finance. He has been a director of a number of companies including a venture capital company and a private equity fund.

Dr. Mahate received his doctorate from Cass City University Business School in London (UK) which was ranked by the Financial Times newspaper as the 12th best university in the world for finance. He read Economics at University

College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Char tered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK).

He is also a member of the Association of Cer tified Anti-Money Laundering Specialists (ACAMS).

In the case of family-owned businesses, the promises tend to be those of trust, consistency, friendliness in the form of greater customer service, reliability and so on.

The strongest brands tend to be those that seek to exploit a unique aspect of the company, such as associations, attributes, benefits and attitudes connected to the brand. In doing so, the set of promises and unique company related aspects seek to influence the customer’s decision making process. This is where the family-owned aspect of the business can come in through highlighting its distinctive family-ness. The interesting aspect is despite the country that one is exporting to everyone understand what it is to be part of a family.

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The corporate identity reflects every aspect of what it does, from the first point of contact with the customer, to how employees feel about the company. As such, a family-owned business should not concentrate on being only customer centric, while at the same time neglecting the needs of its employees.

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Simply stating that a business is family-owned is of little use and will lead to little, if any, impact on consumer buying decisions. Firms need to be more strategic in nature and understand the manner in which their family ownership can be used.

Therefore, the family ownership needs to create a mechanism for competitive advantage or differentiation.

To build a corporate identity based around the family-ness, a firm needs to behave as such. This is easier said than done, largely because firms are under extreme pressure to conform to industry norms due to laws, regulations, and the natural tendency to imitate the strategic behaviours of their industry peers.

As such, the legitimacy of the family-ness of the firm is put to test. Therefore, the family-owned firm needs to balance the importance of following industry norms, so as to perform well financially, and comply with the appropriate laws, with the need to differentiate itself. This does not mean that family owned businesses cannot be open to change and development. Instead, family owned businesses need to ensure that change is linked with its identity.

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The starting point towards creating a family-owned brand is the name. However, in reality, this tends to be limited. One reason for this is that many firms have already established themselves and it is very difficult, if not expensive, to go through the process of changing a name.

The second step is to build a positive reputation among its customers, suppliers, employees and the community at large. Unfortunately, building reputation takes time, but is an important step in creating a strong corporate identity. Reputation can also, if developed appropriately, be an important barrier to entry.

However, the problem with reputation is that if it is not maintained, it can depreciate very quickly. More importantly, the actions that build the reputation can be imitated by competitors and hence they need to be continually enhanced to maintain their relevance and differentiation.

It is paramount to build a good reputation, however, it is as equally important to get everybody in the company to be motivated by it. The reputation the family-owned firm intends to build must be closely linked to its identity.

The corporate identity reflects every aspect of what it does, from the first point of contact with the customer, to how employees feel about the company. As such, a family-owned business should not concentrate on being only customer centric, while at the same time neglecting the needs of its employees.

Similarly, the family-owned business needs to communicate its identity and reputation with both external and internal audiences. It is quite common for firms to think of only their external audience and not of their internal commitments. In doing so, their staff exhibits behaviour which is not consistent with the intended corporate identity. Of course, without the support of its employees, any attempt to build a corporate identity is likely to fail.

It is also important for small family-owned businesses to understand that a corporate identity is not only about creating a logo and producing marketing collateral.

Nor does building a brand imply spending vast sums of money.

Family-owned businesses need to take what is important about themselves, for example their familyness and to set their core values and identity around this attribute. Then the real value begins by having the identity running through the whole firm so that everyone, including customers, are on the same page and working towards the identical goal.

Success Series

Tricks of the trade

SME Advisor ME recently hosted its first Success Series event in Ras Al Khaimah, in conjunction with RAK Free Trade Zone (RAK FTZ). We bring you complete coverage of the event.

T Joumana Saad CPI Business

PRESENTING PARTNER

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he vibe was energetic as SME owners and managers recently gathered for an informative seminar on Best Trade Practice hosted by SME Advisor ME and presented by ADCB. Many of the RAK FTZ companies were new business looking to enhance their knowledge and skills in the area of trade, and network with industry experts.

RAK FTZ has been dubbed as one of the most SMEfriendly free zones in the UAE, as its setup and operational costs remain lower than its counterparts. In the cover story of the April issue of our magazine, we highlighted the competitive advantages that the free zone offers SMEs. The event began with a welcome address from Nilanjan Ray, Senior Vice President and Head of Business Banking Division, ADCB. Nilanjan reiterated the bank’s commitment to serving the SME segment and creating

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financing solutions that are tailored to their specific needs.

ADCB has invested substantially in SMEs in recent years, and is aiming to double the number of its SME clients. The bank currently services over 30,000 SMEs in the UAE. Krishnakumar Duraiswamy, Head of Trade Finance, ADCB, presented on Trade Finance Solutions for SMEs, and broke down the dynamics of international trade and the best practices used today. He also outlined the most common challenges that SME traders are facing. “Language, laws, customs, regulations and transportation systems; these are all potential barriers to your business, and SMEs should be aware of these before entering foreign markets,” says Krishnakumar. “Buyers want time to pay, while sellers want immediate payment. There are also the issues surrounding the transfer of funds, foreign exchange, tariff barriers, politics and country stability to consider.”

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Krishnakumar’s presentation went into detail about cash flow and how businesses need to ensure their payments are sent and received in an organised and timely fashion.

“What we come across on the SME side, is the instance of open account trade growing much faster than global trade.

Companies are wondering how they can mitigate risk and get their payments faster.” he added. He referenced the turbulent global marketplace in 2009, as an example of how companies were confronted with market risk in dealing with buyers.

Krishnakumar also advised attendees to be mindful of the different legal structures in the UAE when dealing with foreign trading companies.

With regards to banking, the presentation also gave the audience a better picture of how the bank acts as a liaison between the buyer and seller, and faciliates the process from beginning to end (shipping to cash collection). Also known as financing receivables, this solution entails that the seller ships the goods to buyer and then sends an invoice to the bank. The buyer then pays the seller on the due date and pays back the bank.

Krishnakumar reiterated the value added from using

The event attracted a diverse group of SME owners and managers resigistered in RAK FTZ.

Abdul Rehman Jalil, Senior Branch Manager, Vice President, SME Business Banking, ADCB; Mohamed Al-Ali, Vice President and Head of Branch Distribution & Services, SME Business Banking Group, ADCB

Nilanjan Ray, Senior Vice President and Head of Business Banking Division, ADCB, gives a welcome speech highlighting the bank’s commitment to serving the SME segment.

financing receivables including overdraft or short-term loans, and the ability to advance funds up to 90% of the invoice value. In addition, a large number of buyers can be covered and higher limits can be assigned on the basis of quality of receivables, underlying good and services and the management nature of the company.

ADCB assists SMEs with an array of trade advisory services. This is a new methodology with regards to trade finance, as it is a step away from sole balance sheet assesment, and a move towards evaluating the quality of recivables as well as strength of accompany’s relationship with buyers. Such services would prove invaluable for an SME who is still new to the trade business.

John Lincon, Vice President, Enterprise Marketing, du, then presented on Managing International Customers. John has rich global experience, working for a number of multinational companies in various regions. He drew examples from his own career of situations where cultural differences can impact the nature of business. He pointed out how different cultures put a various value on punctuality and business etiquette. He also

noted how it is welcomed in Western nations to show emotion and make eye contact when you are speaking to someone, while in a country like Japan, they make an effort to avoid this when doing business.

John highlighted the various ways SMEs can present themselves as leaders in their category. Before meeting potential clients, they should follow the six Ps: always evaluate the purpose of the visit, have a vision for your profit, plan, process, pace and people to prepare yourself for any potential questions.

The audience then posed the question of how SMEs should go about studying their international target customers before approaching them. John stressed that “SMEs in the UAE are foruntate enough to live in a culturally diverse environment where they can seek insights from the people around them.”

SMEs who have the budget, could also do focus groups or surveys to get a better idea of who they are doing business with.

He also added that there is a wealth of information available on the Internet, that any business can take advantage of.

Gordon Barr, Senior Associate, Employment at Al Tamimi & Co, outlined Key Employment Issues in the UAE, and compared RAK FTZ rules and regulations with the federal law. He pointed out that the RAK FTZ laws are more favourable in comparison, but stressed that the UAE Labour Law prevails over the these with regards to employment.

The most common employment issues, Godon says, stem from rejected visa applications from free zones for various reasons including the fact that paperwork is not filled out in

SME ADVISOR Middle East

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Success Series

John Lincoln, Vice President, Enterprise Marketing, du presented on the challenges of managing international customers.

Gopi Devraj, Trade Sales, ADCB; Nirmil Varshney, Area Manager, ADCB; Nasir Saleem, Unit Manager, ADCB

both Arabic and English, salary may not be set in dirhams and the lack of complete company name and stamp.

“It is advisable that SMEs create their own internal employer contract that is more detailed, in addition to any free zone contract. This allows the employer to set more specific policies that provide more clarity to both parties,” says Gordon. He also outlined the practicalities for terminating an employee, which requires that the employer submit cancellation of the work permit and residence visa within 30 days of the termination date. Questions addressed after the presentation touched on the difficulties faced by RAK FTZ companies to bring in employees to work for a short period of time to complete a task.

Gordon explained that under UAE law, there exists a Mission Visa, which is a one-time visa that can cover someone for up to six months. He also stressed the potential implications of abusing visitor visas, which is prevalent in the UAE. Gordon says that such violations put employers at risk, as free zone authorities regulate and monitor this activity.

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Putting international trade into a historical content, Sanjay More of Barlow World Logistics spoke about innovations in supply chain management that have changed the way the world trades. He defined innovation as the development of new customer value through solutions that meet new needs, unarticulated needs, old customer and market needs in new ways.

“Innovation and improvement are not the same. Businesses need to have a better undertstanding in this category. It can be doing the same thing but in a different way,” said Sanjay.

He highlighted examples of supply chain management innovations that took place in recent years including DP World’s 20-foot box container which redefined capability of ships. Today, it is estimated that 70% of world’s trade happens through sea freight. Other innovations include pallets and forklifts, which made for easier movement and storage of goods; the production line, which led to development of auto; and computer and web technology. In recent years, he explained how the advancement of mobile communications is speeding up trade with shorter processes, proof of delivery, less paperwork, data conversion and quick analyses.

Sanjay then defined supply chain management and showed the audience what a typical supply chain model really looks like.

“When you talk about supply chain its not just one company or party, there are so many international organisations involved.

Like the port that handles your shipments, or the free zone that offers you a space for manufacturing; these organisations all play their part in your supply chain.”

The final presentation of the day by Amro Abu-Hmaidan, Communities Development Manager, Tejari, touched on the rise of online trade communities and the various benefits to SMEs in this area. The company has become a pioneer in the industry over the past decade for promoting online trade.

Earlier this year, Tejari launched BizTrumpet.com, which is portal specifically designed for SMEs who want to promote their services and find buyers and sellers online.

The takeaway from the presentation is that the face of e-commerce is fast changing and online spending is forecast to see a big increase. Therefore, SMEs cannot afford to miss out on this opportunity. Recent research by Tejari estimates that 40% of SMEs have been able to increase their revenues by 15% by using online trade communities. Focusing on the

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L - R: Anser Qayum, Ocean International speaks with Krishnakumar Duraiswamy, Head Trade Finance, ADCB

Middle East, Amro pointed out that the users in this region for the most part don’t handle most of their business online, as Internet penetration as a whole remains low compared to other regions. In the UAE, however, the big is very different as this has become an area of fast expansion.

Amro also outlined the main benefits on both the buyer and supplier sides for joining online trade communities. Advantages to the buyer include: more options, better prices, higher quality of products and versatility. Meanwhile, suppliers can get better exposure to bigger markers and improve business maturity and agility. Another important benefit is the ability for SMEs to minimise risk by diversifying their portfolios, and shifting their focus to more than one market. “Billions of dollars worth of trade happens online in the MENA region, and 75% of C-level executives are using the Web on a daily basis. This makes for the right conditions for SMEs to boost their exposure and expand their opportunities,” says Amro.

L - R: Kathrin Lemke, Regional Office Coordinator, RAK Free Trade Zone; Elena A. Lazareva, Ithara Group

Panel of speakers Krishnakumar Duraiswamy, Head of Trade Finance, ADCB “What we come across on the SME side, is the instance of open account trade growing much faster than global trade. So, companies are wondering how to mitigate risk and get their payments faster.”

John Lincoln, VP, Enterprise Marketing, du “SMEs in the UAE are foruntate enough to live in a culturally diverse environment where they can seek insights from the people around them.”

Gordon Barr, Senior Associate, Employment, Al Tamimi & Co.

Sanjay More of Barlow World Logistics “Innovation and improvement are not the same. Businesses need to have a better undertstanding in this category. It can be doing the same thing but in a different way.”

Amro Abu-Hmaidan, Communities Development Manager, Tejari “Billions of dollars worth of trade happens online in the MENA region, and 75% of C-level executives are using the Web on a daily basis. This makes for the right conditions for SMEs to boost their exposure and expand their opportunities.”

“It is advisable that SMEs create their own internal employer contract that is more detailed, in addition to any free zone contract. This allows the employer to set more specific policies that provide more clarity to both parties.”

SME ADVISOR Middle East

October 2012

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BANKING FOR BUSINESS

A meeting of minds The Third Middle East SME Forum, recently held in Abu Dhabi, brought together business leaders from various industries to discuss the role SMEs play in the regional economy.

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SME ADVISOR Middle East

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Joumana Saad CPI Business

ver 150 participants gathered in Abu Dhabi for the forum which was presented by ADCB. Over 21 presentations, and six panel discussions were held during the two-day forum. Speakers and panellists touched on the changing SME ecosystem in the Middle East, challenges and opportunities for startups and also best practices and successful stories in the region’s SME sector.

Key decision makers from across industries in the region participated in the event by sharing their success stories to show the path forward and help to cope with challenges in order to boost SME growth and economy.

Nilanjan Ray, Senior Vice President and Head of Business Banking Division, ADCB, kicked off the forum by putting the power of SMEs into a global perspective. He noted that export powerhouses in Europe and Germany in particular,

In terms of innovation, job creation and exports, globally SMEs make up a high concentration and contribution towards the national economy.

have a strong SME base, and that it’s the smaller SMEs that generate 70% of all employment in Germany, according to the European Commission Enterprise and Industry.

The World Trade Organisation estimates that 68% of all exports in China originates from SMEs. “In terms of innovation, job creation and exports, globally SMEs make up a high concentration and contribution towards the national economy,” says Nilanjan.

ADCB currently provides banking services to 30,000 SMEs and has focused on growing its customer base in this category. The bank has aimed to double the number of its SME clients in the near future, and has developed financing solutions designed around the unique needs of growing companies.

As part of the headline sponsorship of Emirates Woman of the Year Awards 2012, ADCB is also presenting The 2012 ADCB Ambition Award in partnership with INSEAD. The ADCB Ambition Award runs in parallel with the Emirates Woman of the Year Awards campaign. The Award has gained momentum in recent years as the word has spread about the initiative which aims to recognise, nurture and reward promising female entrepreneurs in the UAE. The winner of the Award will be announced during the Emirates Woman of the Year Awards 2012 in association with ADCB on the 25th November 2012 at the Armani Hotel, Dubai.

Also highlighted in the opening presentations were projects like Khalifa Industrial Zone Abu Dhabi, also known as KIZAD, which is a relatively new free zone managed by Abu Dhabi Ports Company (ADPC). Three key advantages for SMEs looking to establish a presence there include: outstanding access to global markets, a low operating cost environment and overall ease of doing business. The free zone offers access to over 100 national capitals within reach.

Mustafa Khdair of KIZAD, also explained how investment into the free zone could open the door to penetrating new markets. He also announced plans to construct a business park in the area in the near future.

Howard Gaunt, Executive Vice President and Head of Corporate and Business Banking Group, ADCB,

Nilanjan Ray, Senior Vice President and Head of ADCB’s Business Banking Division, gave an opening speech focusing on the global impact SMEs have on their respective economies.

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BANKING FOR BUSINESS

L - R: Howard Gaunt, Executive Vice President and Head of Corporate and Business Banking Group, ADCB; Edward Roderick, Managing Partner, Envestors MENA; Dr. Adeeb Mahmoud Al Afeefi, Director of Foreign Trade and Export Support, Abu Dhabi Department of Economic Development; Colin Fraser, Executive Vice President and Head of Wholesale Banking Group, ADCB; Craig Hewett, SVP and Head of Business Development, NASDAQ Dubai

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moderated a panel discussion on Ongoing Goverment & Private Sector Initiatives towards SME Development.

Panellists included Colin Fraser, Executive Vice President and Head of Wholesale Banking Group, ADCB; Dr. Adeeb Mahmoud Al Afeefi of the Abu Dhabi Department of Economic Development; Essam Disi of Dubai SME; Hala El Sokari of the Khalifa Fund; Craig Hewett of NASDAQ Dubai; and Fahad Al-Semari of Saudi Aramco. Topics for debate included the value of IPOs for SMEs looking for growth, as well as the value of non-financial support to entrepreneurs. Colin emphasised the growing number of large organisations

Thinking big is important; it does not mean that if you are a small company you cannot have big objectives or policies. You have to believe in your business plan and what you do. Most importantly, do not let your profitability be the only indicator of your progress.

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who are fast realising the need to serve SME community.

Essam stressed the need for government agencies and financial institutions to understand the cycle of growth for SMEs and entrepreneurs, to better serve their unique needs in various growth stages.

Fahad shared his observation that people are focusing too much on financing. He says there needs to be more focus and analysis on post-funding growth. He also pointed out how common it is for entrepreneurs to lose their focus early on and that more pre-planning and developing a strong foundation would minimise the risk of failure in the long run. The Saudi Aramco Entrepreneurship Centre, also known as Wa’ed, has trained over 1,000 entrepreneurs since its launch

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SME ADVISOR Middle East

earlier thie year. Thirty per cent of these individuals are women and 10% went on to recieve funding.

Craig spoke about NASDAQ Dubai’s plan to devote more focus to educating SMEs on the value of IPO and how to prepare for one. “In terms of criteria that SMEs should follow to one-day be suitable for an IPO, it’s all about having a good investment story,” he says.

Dr. Al Afeefi of the Abu Dhabi Department of Economic Development (ADDED) later presented on the benefits of exporting for SMEs. He emphasised the very small percentage of SMEs in the UAE who are exporting products or services, and explained how it could help companies diversify and minimise risk. The ADDED is currently working to grow exports and re-exports.

The department provides support service to trade companies such as capabilities development (seminar training), market intelligence, in-market presence, market connections, financial support and advocacy. Dr. Al Afeefi also gave the example of local companies that wanted to export, but were faced with legal obstacles. He explained how with the department’s help they were able to export their services within the aviation industry and win a major project in Qatar worth USD one million.

Abdullah Al Jufaili of the Oman-based SHARAKAH Fund for Development of Youth Projects, presented on Opportunites and Challenges in Developing a Small Business. He spoke about the various cultural challenges still proving to be obstacles to entrepreneurship in the region such as the non-willingness to embrace failure as part of the process. He also noted that the number of successful entrepreneurs in the region are not promoted enough to encourage others.

Another notable panel discussion at the forum touched on the topic of Combating Challenges faced by SMEs in Growing their Business. Panellists includued Hala El Sokari of the Khalifa Fund, Hassan Al-Hazeem, a wellknown Emirati businessman and Managing Director of

Sources: Dubai SME, AT Kearny, OECD

how CEOs rely 10% on skills and 90% on presence.

“Leaders need to have a high level of emotional intelligence to influence and motivate others. A combination of hard and soft skills is necessary to breed innovation into your business,” says Hala.

She added: “Beyond financing, marketing is a major area of challenge for SMEs regionally and organisations need to look for new ways to build and develop their skills.” Abdullah was of the opinion that “businesses need at least three years to stabilise. After that point is when private equity can come in and play a big role in growing the business.”

On the topic of how SMEs can attract a manageable cash flow, Hassan then stressed the need for companies to be prudent and proactive about doing the proper reports. He gave the example of his company and how an SME can use social media and web-based marketing correctly to increase brand awareness. Intercoil Group of Companies incorporated a number of creative marketing campaigns that helped it stand out and gain exposure and press coverage in the process.

Through his presentation, Hassan shared the story of his company’s growth and success. He also presented

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Intercoil Group of Companies; and Chandrakant Salunkhe of the SME Chamber of India. When asked about how SMEs should address uncertainy into today’s business climate, Hassan says in the case of his company, they continued to be aggressive during turbulent times.

The key to making it all work, he says, lies in moderation.

“During the recession, we tried to be flexible to adapt to changes in market, but yet still be aggressive in expansion. At the same time, we modified our strategy, more frequently, to keep a closer eye on everything.”

“In terms of advice for SMEs to master their business planning techniques, some must do’s include doing proper market research and monitoring it diligently. Eliminating obstacles that are hindering the core business is also important, and finally any successful organisation must keep both staff and clients happy,” Hassan added.

Referring to the key traits and characteristics of good leadership, Hala pointed to a recent study that revealed

There are huge opportunities within the SME sector for economic growth and business for the banking sector.

The challenge is for banks to not only recognise this huge opportunity, but to also build capacity to tap it.

an overview on the SME sector in the region and the roadmap for cross-border business expansion. Near the end of his presentation, he shared a bit of sound advice that all business owners could benefit from: “Thinking big is important; it does not mean that if you are a small company you cannot have big objectives or policies. You have to believe in your business plan and what you do.

Most importantly, do not let your profitability be the only indicator of your progress.”

During the panel disccusion on innovation and new business, Kaiser H. Naseem, International Finance Corporation (MENA), noted that “as any other economy in the world, the economies of the Middle East countries are also driven by SMEs. As such, there are huge opportunities within the SME sector for economic growth and business for the banking sector. The challenge is for banks to not only recognise this huge opportunity, but to also build capacity to tap it.”

On day two of the forum, Karim Hajjar, Business Development Manager of DC Pro Engineering presented the business as a case study in starting up a small business in energy efficiency and renewable energy. He mapped out the company’s most successful strategies in expanding business across the region. The GCC has the world’s highest penetration of District Cooling into the HVAC market where Dubai has achieved 20% penetration.

Based on market esitmates, District Cooling is forecast to reach a 50% penetration rate by 2030 in the GCC. Finally, Ghazi Bin Othman of Malaz Capital, a venture capital firm based in Saudi Arabia, gave the audience a big picture look at the main obstacles facing SME financing in the MENA region. “Little or no collateral, balance sheet constraints, tight cash flow and stringent bank conditions all still remain real issues today, “ he says.

Referring to the financing landscape for SMEs in Saudi Arabia, Ghazi, explained that “the nascent or specialist nature of professional providers of equity financing and the focus of other providers on the microfinance segment leaves a large financing gap.”

ADCB Ambition Award in partnership with INSEAD

Vote now on:

www.emirateswomanawards.com

SME ADVISOR Middle East

October 2012

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MANAGEMENT

Strategy execution Every business has an operational aspect to it. Whether you are running and managing a restaurant or a retail business, the manner in which you run your operations can determine if your business is profitable and sustainable, writes du’s John Lincoln.

M John Lincoln du

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ost SME owners and investors do not pay enough attention to this critical aspect of their business. My definition of operations management is that it includes the formulation, design, planning, process mapping, execution and the control of operations to convert all your resources into products, services, and or, goods. In other words, the operations management is how you execute on your intended business strategy.

The resources could range from your people, financial, inventory, capacity and or any resources deployed to create incremental value. Most operational management issues discussed here would seem very obvious to you. However, you will be surprised to note how few small businesses really pay heed to these obvious management issues; otherwise, we would not hear of theft, vandalism, lack of inventory or stock and poor after sales and or customer service with many SMEs. The list of operational issues that I will discuss here is by no means mutually exclusive, nor are they completely exhaustive.

SME ADVISOR Middle East

Procedures, processes and systems

Having a policy, procedures and processes will significantly help a small business to combine a documented system under which the small business will operate.

Policy A policy can either be written or, a verbal statement, of a small business’ stance on an issue or topic. It helps the SME owner to define how things are done in his or her business and what rules apply to the respective stakeholders. Policies can include such things as annual leave, payment to suppliers, overtime, dress code, Internet usage and others in the workplace.

Procedures A procedure is a step-by-step instruction to achieve a certain outcome of the business. Some procedures are general, whilst others must be detailed. A manufacturing process or the handling of work place injuries, the operation of the factory machinery or heavy equipment, must be detailed and written by an expert.

Processes and systems A process is a method or system for achieving a certain outcome for your small business.

The process should be repeatable and structured. In other words, you cannot have different processes and ways every other day.

The process should ensure that nepotism (in hiring), fraud, theft, verification and checks and controls are in place so that no one or two persons can jeopardise your business. However, check and controls should not create unnecessary layers of bureaucracy that will affect your service to your customers.

It is important for small business owners that company policies, procedures and processes are properly documented and can be easily understood and is made available to all relevant employees.

When policies, procedures or processes form part of your small business employee’s terms and conditions of employment, they must be attached or linked to the employment contract.

Process mapping

It is important that you, as a small business owner or manager, have a defined process (not necessarily documented in a binder that no one reads) that your employees and you can follow for critical processes like hiring, ordering and receiving inventory, supplier payment, inventory management, production or service methods, sales and marketing, cash handling and salary payments.

You will have to pay special attention to the process mapping and administration management of a few critical areas.

Financial management Ensure that your small business accounts payable and receivable management, the preparation of financial statements, budget planning and reporting processes are structured and well understood by your employees.

Business compliance requirements Ensure that all regulatory and governmental compliance requirements are met. These could range from ensuring that there is adequate insurance, tax withholding, payment of social security tax, transportation records and employee visas and details. If for some unfortunate reason your firm is

Workplace security It is imperative that you should first and foremost address the safety and security of your business, your employees and customers.

You should put preventive measures to mitigate risks of fraud, theft and vandalism so as to ensure that your small business assets, inventory and machinery and other critical assets vital to the running of your business are not jeopardised. You should conduct a thorough assessment and contingency plan to help minimise losses due to fire, burglary, fraud and injury to employees.

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Data storage and back up Please ensure that your entire critical customer, supplier, employee and other information are redundant and regularly backed up. I have personally seen many small businesses incur significant losses by not paying attention to this one issues.

audited by any governmental or regulatory authorities, you will be mired in countless hours trying to prove that you are in full compliance.

Remember that the onus is almost always on you.

Therefore, pay special attention to record keeping, which includes, but not limited to, filing, collecting information on business issues and maintaining statutory documentation.

Administration management

As a small business owner, you should be acutely aware and comply with reporting and record-keeping obligations that you might have.

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Internet fraud Be sure to pay special attention to Internet fraud or online fraud schemes that used e-mail, websites, chat rooms or message boards to represent your company, or you, for fraudulent solicitations or transactions. Also, pay special attention to your online cash transfer process and verification.

If you have personal customer information stored in your computer systems, watch out for phishing from within or, outside, your company. Phishing is a technique used to gain personal information for the purpose of identity theft.

Excessive inventories lead to additional costs or wastage that your small business cannot afford.

Lack of inventories could mean order cancellations and customer dissatisfaction. Budget furcating and planning are critical to ensure that your small business has the optimal inventory at all times.

Database management systems and process Ensure that you have redundant and reliable database management systems and processes to accurately track your customers, suppliers and competitors.

Human resources and people issues Ensure that the administration of supervising your employees and maintaining records of their payroll and sick days and vacations are properly carried out.

Office equipment, supplies purchases and maintenance Ensure that processes are in place to maximise the productivity of your employees. I have seen many businesses

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MANAGEMENT About With more than 30 years of senior level management experience in star tups, telecom giants and technology companies across the globe, John Lincoln has experienced success and failures from boom to bust. Currently, he is the Vice President of Enterprise Marketing for du in the UAE and has representative responsibility to deliver the B2B (enterprise, large corporate and SMEs) revenue and profitability for this telecommunications company.

John has witnessed the early days of telecommunications and foresaw the huge potential of the telecommunications industry as early as the 1990s, and therefore decided

to pursue a Master of Science degree in telecommunications from Golden Gate University, San Francisco, after completing his MBA from the same institution. A transplanted American who has worked in countries such as Japan, India, the UK, Malaysia, Thailand and Brazil, apart from the US, John has a truly global perspective. He has held senior management positions in global companies such as Vodafone, Japan Telecom, Bharti Airtel and AT & T and has had the privilege of hiring and managing large multicultural teams and working in different and very challenging market conditions.

Through it all, John has grown and learnt from his – and other people’s – successes and

failures. He started and ran small businesses, risking a lot of his capital and working roundthe-clock. But the businesses failed, because he “didn’t know what he knows now”. That led to him embarking on a corporate career, which he now cherishes.

You can find John’s personal blog at www.johnlincoln.biz. He can be contacted via: john@johnlincoln.biz, and followed on Twitter: @lincolnjc.

At present John is in the final stages of launching a book which explores how businesses can grow and achieve sustainability, which is scheduled for publication within the coming months.

not having adequate supplies and wherein employees often end up wasting time until supplies or equipment are replenished or replaced.

Supplier management and contracting Most small businesses ignore supplier management and legal contract issues to their own detriment. Pay special attention to mitigate fraud and overcharging and or potential legal suits down the road.

Outsourcing Small businesses should consider outsourcing as a viable option if too much time is spent on administration of a specific process or task.

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Inventory management

Many small businesses pay little or no attention to end-to-end performance reporting for their business.

Remember always that what you cannot measure, you cannot report, and what you cannot report, you cannot manage. If you cannot manage something, you definitely don’t have chance to improve performance.

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Administration issues often distract a SME owner or manager and take up invaluable time that should be spent on running the core operations of the business. It is therefore imperative to create systems, methods, processes and procedures to increase productivity of your employees and cut unnecessary repetition and wasting of valuable time and resources.

Supply chain and logistics management

Every small business, irrespective of the industry, has a supply chain. Supply chain management includes the management of all tasks and activities to transform the raw materials, service or products into a customer value proposition and includes ensuring that these services and products are delivered to the customer.

It also includes the management of processes and system for assembling, storing and disposing of waste materials for your finished customer value proposition.

Most small businesses face critical supply chain management issues when the business is growing. These

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challenges and issues often lead to a decrease in productivity, increased costs and lower customer satisfaction.

SME ADVISOR Middle East

Excessive inventories lead to additional costs or wastage that your small business cannot afford. Lack of inventories could mean order cancellations and customer dissatisfaction.

Budget furcating and planning are critical to ensure that your small business has the optimal inventory at all times.

Performance reporting

Your operations management should have process and systems that accurately report the performance of your business.

Many small businesses pay little or no attention to endto-end performance reporting for their business. Remember always that what you cannot measure, you cannot report, and what you cannot report, you cannot manage. If you cannot manage something, you definitely don’t have chance to improve performance.

Round-up

Operations management is an important aspect of your business. Your failure to afford extra, or even basic, time to this important aspect of your business could mean lost customers and profits; what this means is that the prudent management or lack thereof of the operations of your small business, could determine if your business perish or flourish.

I want to leave you with a final thought on operations management. In the end all business operations could be summarised into three areas; people, propositions and profits. Unless you have a grapple on the operations of your small business, all three areas of your business will be impacted.

LEGAL

Lining up your pieces

Corporate governance is beginning to gain a foothold in the operations of everyday business across the region. Ahmed Ibrahim of Al Tamimi & Co. provides a breakdown of the procedures involved.

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Ahmed Ibrahim Al Tamimi & Co.

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veryone dealing with a company, whether as a shareholder, stakeholder or director wishes it to be well managed, or at the very least managed for their own benefit. Of these stakeholders (which may include suppliers, distributors, agents, and so on), the only group actually in a position to ensure that the company is managed for their own benefit, are the directors.

In the meantime, the only group who can control the directors and monitor their performance are the shareholders. So, the relationship between the shareholders and directors is of great importance.

Stock markets and public companies exist to offer the public the opportunity to invest and own shares in companies without involvement in their management. In general, shareholders of public companies acquire their shares on the stock market from other shareholders who want to sell part or whole of their stake in the company in question, without having a particular interest in the management of the company.

SME ADVISOR Middle East

In some companies a wide spread of ownership of shares means that no one shareholder or group of shareholders can exercise effective control over the directors, so if shareholders do not like the performance of a company’s directors, rather than trying to influence the directors, they sell their shares.

In view of these facts, the concept of separation between ownership and management has emerged and that was an underlying rationale behind the introduction of corporate governance rules. In general, corporate governance rules aim to provide the system by which companies are directed and controlled.

It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other and the goals for which the corporation is governed. It is to ensure that the company is managed in an efficient and ethical manner for the benefit of all shareholders over the longer term.

Following the general international business and corporate practices, HE Sultan bin Saeed Al-Mansoori,

About Ahmed is Head of Equity Capital Market and has experience in general corporate/ commercial matters (including joint ventures, founding of joint stock companies, limited liability companies, partnerships,

The Securities and Commodities Authority (“SCA”) is the authority in charge of supervising, controlling and verifying the compliance of companies with the Decree.

The provisions of the Decree are applicable on all companies and institutions whose securities have been listed on a securities market in the UAE and to their board members. By way of exception, the Decree does not apply to companies and institutions that are wholly owned by the Federal Government or a local government.

The Board of Directors of SCA may exempt companies in which the Federal Government or a local government own shares from certain provisions of the Decree; provided, however, that a company’s request reflects the provisions from which the company is requesting exemption and the causes of exemption.

Board members and their appointment

The members of the first board of directors of a company should be elected by the founders, while the members of subsequent boards will be elected for a fixed term by the company’s shareholders, the formation of which must take into consideration an appropriate balance between executive, non-executive and independent board members to comply with the Decree.

In this regard, the Decree requires that the composition of the board of directors to be as follows: (i) at least one-third of members are independent members; and (ii) a majority of members shall be non-executive members who shall have technical skills and experience in order to achieve the best interest of the company.

In all cases, when selecting non-executive members of a company, they should allocate adequate time and exert effort to his/her membership. Board members must not have a conflict of interest with the business of the company in question. The duties of non-executive board members, in particular, include: 1. Participation in board meetings to give an independent opinion in respect of strategic issues, policy,

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and negotiating, shareholders agreements, share purchase agreements, and subscription agreements, as well as various commercial agreements including sale of goods, agency and distribution agreements.

performance, accounting, resources, basic appointments and standards of operation; Giving priority to the interests of the company and its shareholders upon conflict of interest; Participation in the audit committees of the company; Follow-up of the company’s performance in order to achieve agreed objectives and purposes and oversee performance reports; and Empowering the board of directors and different committees through utilisation of their skills and experience and the diversity of their competences and qualifications through regular attendance, effective participation, attendance of general assembly meetings and developing a balanced understanding of shareholders’ views.

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Economy Minister and Board Chairman of the Emirates Securities and Commodities Authority (SCA) has issued decree no. 518 of 2009 on rules and regulations of corporate governance and institutional code of conduct (“Decree”).

Broadly speaking, the Decree sets out: (i) how board of directors should be composed and its tenor; (ii) types of board members; (iii) the role of the Chairman of the board; (iv) board committees; (v) remuneration of board members; (vi) internal control; and (vii) external auditors.

limited partnerships, branch offices, and representative offices, corporate restructuring, formation, shareholders arrangements, corporate governance, and acquisitions).

He also participates in drafting, reviewing,

In general, each board member shall, when assuming his/her office duties, disclose to the company the nature of positions he/she assumes in companies and public institutions as well as other obligations, their set term and any changes related to it once the same takes place.

In general, each board member shall, when assuming his/her office duties, disclose to the company the nature of positions he/she assumes in companies and public institutions as well as other obligations, their set term and any changes related to it once the same takes place.

Having said that, the Decree defines independent board member as follows: “a member who neither himself/herself, his/her spouse nor first-degree relative (father, mother, children, spouse, spouse’s father, spouse’s mother and stepchildren) is a member of the executive management of a company during the last two years or has a relationship that creates financial deals with a company, parent company, sister company or allied company during the last two years if the total amount of these transactions exceeds 5% of the paid-up capital of the Company, an amount of five million dirhams (AED 5,000,000.00) or an equivalent amount in a foreign currency, whichever is less.

In particular, a board member does not meet the independence condition in the following cases: • he/she is an employee of any party related to the company during the last two years; • he/she is directly related to a company that performs consultation business or provides consultations to the company or any parties related thereto; • he/she enters into personal service contracts with the company, any party related to the company or the employees of the executive management of the company; • he/she is directly related to a non-profit organisation that receives a considerable financing from the company or a party related thereto;

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LEGAL • he/she is during the last two years related to or an employee of any external or former auditor of the company or any party related to the company; • if his/her or his/her minor children’s share or the share of both in the capital of the company amounts ten percent (10%) or more”.

The Decree also defines non-executive board member as follows: “a member who is not dedicated on a full time basis to the management of a Company or does not receive a monthly or annual salary from a company. The remuneration received as a board member may not constitute a salary” While the executive board member is defined as “a member who is dedicated on a full-time basis to the management of a company or who receives a monthly or annual salary from a company.

Committees must comprise at least three non-executive board members, of whom at least two members are independent members and to be chaired by either independent members. The chairman of the board of directors may not be a member of any such committees.

The board of directors shall select non-executive board members for the committees charged with the duties that may result in conflict of interests, such as verification of the integrity of financial and non-financial reports, review of deals concluded with interested parties, selection of nonexecutive board members and fixation of remuneration.

Other European and Middle Eastern jurisdictions, such as England and Egypt, require a third committee affiliated to the board in charge of monitoring business risks, namely the Risk Committee.

Remuneration of board members

Chairman and Chief Executive Officer

In principle, the roles of the Chairman and the Chief Executive Officer should not be carried out by the same individual. In particular, the Chairman’s duties are:

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(i) ensuring the efficient and timely performance and discussion of all main issues by the board; (ii) Responsible for the agenda of every meeting of the board taking into consideration any matter proposed by his fellow directors. This responsibility can be delegated by the Chairman to another director or the secretary of the board;

A company has to apply a precise internal control system that aims at developing an assessment of the company’s risk management means and measures, sound application of governance rules, verification of compliance by the company and its employees with applicable laws.

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(iii) encouraging all directors to fully and efficiently participate in handling the affairs of the board and ensuring that the board is working in the best interests of the Company; (iv) taking appropriate measures to ensure efficient communication with the Company’s shareholders; (v) allowing efficient participation of non-executive directors and promoting constructive relations between executive and non-executive directors.

Board committees

There are two essential standing committees that the board of directors must form, namely: (i) The audit committee, which monitors the company’s financial statements, to renew and recommend changes to the financial and control systems and to maintain an appropriate relationship with the company’s external auditors; and (ii) The nomination and remuneration committee to set the policy for the remuneration of the executive management, determine targets for performance-related pay and determine the total individual remuneration package of each executive director, including salary, bonuses, pensions and incentive schemes.

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SME ADVISOR Middle East

Under Article (118) of the Law of Commercial Companies No. (8) of 1984, the remunerations of board members may be a percentage of net profit. The Company may also pay ancillary expenses or fees or a monthly salary in the amount fixed by the board of directors to any member if such a member works in any committee, exerts special efforts or undertakes additional duties for the company beyond his/ her normal duties as a member of the board of directors of the company.

In all cases, the remunerations of board members may not exceed ten percent (10%) of net profits, having deducted depreciation, reserve and distribution of a dividend of at least five percent (5%) of capital to shareholders.

Internal audit

A company has to apply a precise internal control system that aims at developing an assessment of the company’s risk management means and measures, sound application of governance rules, verification of compliance by the company and its employees with applicable laws.

External auditor(s)

The board of directors shall nominate an external auditor at the recommendations of the Audit Committee.

Appointment is to be made and remunerations are to be fixed by a resolution of the general assembly of the company. The external auditor shall be independent from the company and its board of directors and may not be a partner, agent or a relative, even of the fourth degree, of any founder or board member of the company.

Following the same principle set out by the US Sarbanes Oxley Act, was formulated in the wakes of the Enron scandal, the Decree provides that external auditors may not, while assuming the auditing of the company’s accounts, perform any technical, administrative or consultation services or works in connection with its assumed duties that may affect its decisions and independence or, any services.

These mandatory rules of corporate governance are applicable on public companies only; private joint stock and limited liability companies may also select the best of these rules as a code of best practice.

It would assist these companies to manage their business properly and formulate solid grounds for future expansion with possibilities of going public or attracting strategic investors. Any outside investor will find a company governed well and ethically an attractive proposition, particularly if it has a track record extends back over time.

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Entrepreneurship

What’s driving

small business?

A new survey by company setup specialist Virtuzone shows positive prospects for small businesses in the UAE.

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SME ADVISOR Middle East

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Joumana Saad CPI Business

hree years ago, it would have seemed unrealistic to believe that the UAE would so quickly return to economic prosperity. However, looking at the economic indicators across the board, the turbulent market times seem to be easing. A recent survey conducted

by Virtuzone revealed market insights reflecting the health of the small business sector. According to the survey, 59% of small business owners consider the performance of their business better than expected, 60% are already making a profit, while 49% are confident their companies’ revenue will improve in the next 12 to 18 months.

These numbers are significant, as SMEs have previously been regarded as less than privileged in recent years compared to their large counterparts. Furthermore, the survey’s findings highlight a fast-changing eco-system for entrepreneurs and SMEs in the UAE, that has seen much more support from the public and private sectors within the last few years.

The survey, which polled 153 individuals, startups and small enterprises in the media industry licensed by Virtuzone, examined the key challenges and factors impacting their growth. It collected their views on the economic outlook and opinions with respect to the type of support and services that are critical to their set-up and long-term development.

these demands, Neil says his team is currently focusing on new ways to include such valuable services into a standard setup package. “To get people really up and running we’re considering giving them web presence as part of the setup package. Once that happens, they become linked into our network, along with a several thousand companies, which can benefit from each other,” he says.

Since it was founded three years ago, Virtuzone has evolved from a government-liaison setup operator, to become part of a larger group of companies, each able to serve the individual needs of new business owners. In addition to Virtuzone, VirtuVest, a venture capital division will plan to invest in about 40 startups registered at Virtuzone over the next two years.

Positive prospects 59% 49% 60% 59% of small business owners consider the performance of their business better than expected, 60% are already making a profit, while 49% are confident their companies’ revenue will improve in the next 12 to 18 months.

Growth factors

Source: Virtuzone

The report also identifies key factors driving this growth including the Internet, e-commerce and technological advancements (58%), as well as demographic factors and

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Companies fail when their costs are at highest and profits are at lowest in the beginning stages. So, we have strived to evolve to become an incubator for these companies to provide value added services to them.

Neil Petch

favourable economic conditions (33%), including the ease with which a business can be set up. “I think that we’re in a very fortuitous position in terms of Internet penetration.

You’ve got a situation where venture capitalists are increasingly looking to the Middle East for growth potential,” says Neil Petch, Founder and Chairman of Virtuzone. “The problem at the moment is the meeting point. We want to create that honeypot where everyone goes. We’re in a good position with a network of over 1,000 companies environment is there its just a question of getting it all together,” he says.

When it comes to startups and new businesses, there is always the question of failure lurking nearby. Although the Virtuzone survey was an overall positive indicator, looking at the other 38%, most of them ceased to operate for one reason or another. As the business landscape for these companies becomes more complex, so does their need for valuable services, Neil explains. “Companies fail when their costs are at highest and profits are at lowest in the beginning stages. So, we have strived to evolve to become an incubator for these companies to provide value added services to them.”

New market demands

According to the respondents, marketing and legal services are areas where companies need the most support. No matter how driven an entrepreneur may be, time is always an obstacle in the way of potential success. To address

“We target very much people in services related industries.

So, if someone who wants to open up a spa, restaurant or charter business you can do that with us; we couldn’t do that before. “Neil added that his company specialises in aiding businesses that tie into intellectual property related. “We try to give companies that setup with us that feeling of safety that they can invest in it; we try to give them the ability to not have large opening costs.”

In terms of the biggest challenges faced by startups and small businesses, uncertainty about cash flow (49%) was number one, followed by the difficulty of planning firmly for next steps (34%), unexpected market changes (11%) and pressure from larger competitors (6%).

Buzz words

With a heightened interest in the SME sector, Neil noted the trend of people associating their organisations with “buzz words” to make profits. However, he cautioned that people are a lot wiser today, having seen market risk firsthand. “Like the property boom here; more people will come in and people will begin to realise that there are a lot of genuine providers, but also a lot of hot air out there.

Everything operates in cycles, but it’s great opportunity for us at the moment,” he says.

Neil also highlighted the changing face of entrepreneurship in the UAE. As the economic situation continues to be bleak in a number of Western markets, he expects to see a wave of people from these places come in with the intention of starting a business in the UAE. “There are some really convincing reasons to start a business out of here, and when the word really gets out on a big level, you’ll see a lot of people come in, and when they come in their savings come as well. There’s a lot of money in the UAE banking system just sitting there,” says Neil. “What we need to do now is make that money work for them and help them to feel safe to invest in things. If you put those together, that’s when you get a snowball effect.”

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Entrepreneurship

Creative spaces As the entrepreneurial eco-system flourishes in Dubai, we give you a look at a number of creative workspaces that are attracting young professionals and creative types.

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Joumana Saad CPI Business

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October 2012

or Leith Matthews, the idea of starting up a business was one he has held on to for a while. An Australian-native, his dream of breaking out into the restaurant business did not pan out as planned at first, as he could not get the funding he needed. After getting a job and relocating to Dubai, he saw potential, but noticed a need in the market for a more suitable venue dedicated to aspiring entrepreneurs like himself. “I realised that if executed correctly, it could be a profitable business opportunity in itself,” says Leith. “The desire and need for a venue like MAKE was there, thus from the day we opened we have built a steady foundation of regular users, and we continue to attract more people interested in being involved in this exciting community of entrepreneurs and creative thinkers.”

SME ADVISOR Middle East

Leith officially opened MAKE Business Hub in Dubai, in early 2012, and it has already made a name for itself in its category. He says the timing was just right for such a venture, as entrepreneurship and SMEs became a bigger focus regionally after the Arab Spring. “More influential players became interested in the SME and startup scene here in the region. Young entrepreneurs now have more clarity with regards to opportunities for investment and support from venture capital funds and governmental organisations. The global financial downturn has created a landscape which promotes freelancing and makes working for yourself an even more attractive proposition than before.”

MAKE may not be the first creative workspace to open up in Dubai, but it’s community-like atmosphere is truly unique. The space is bright and open, surrounded

MAKE Business Hub has become a popular spot for young entrepreneurs and startups in Dubai to meet, work and host events

by windows overlooking the streets of the vibrant Marina district. It has become a meeting point for likeminded people to work on their businesses and collaborate on ideas.

Many of these entrepreneurs use the space regularly as they aim to get their startups off the ground. It’s not at any cafe or business centre where you can set up your laptop, order a latte and connect with people with whom you have so much in common.

Recently, the space has become a popular venue for startups and other organisations to host their events.

The popular MAKE ignition, is a monthly tech startup event hosted by the venue, that has become quite popular, showcasing a number of exciting new concepts.

SeedStartup, a Dubai-based global accelator and seed fund programme, recently held their Investor Demo Day at the venue, which attracted a number of angel investors and venture capitalists who came to hear pitches from entrepreneurs from all over the world.

Then there’s The Pavilion in Downtown Dubai, which opened last year, which has become a creative hub for artenthusiasts. The venue hosts two art galleries, provides a place to view, discuss and participate in work by local and international artists. The venue also hosts book launches, artist talks, film screenings, musical performances, workshops and children’s events, and aims to create opportunities to engage artists, writers, students, scholars and the public to contribute towards the developing cultural landscape of Dubai and the UAE. The Pavilion is a joint-venture between Emaar and Cultural Engineering. Formerly, a sales office for Emaar Properties, the building was renovated to reflect a culturally based venue for the community.

Another famous name in the workspace world is Shelter, an initiaive founded by Ahmed Bin Shabib and Rashid Bin Shabib, two Emirati entrepreneurs who have also founded BrownBook, an arts and culture magazine.

Originally, the first Shelter was launched several years ago in another area of Dubai. After the opening of Al Serkal Avenue, a cluster of warehouses in Dubai’s industrial Al Quoz area, the founders decided to refocus

Leith Matthews, Owner and Founder of MAKE Business Hub

its essence to entrepreneurship and relocated Shelter to the area, which currently serves as Dubai’s art hub. They choose a warehouse and rebuilt it with the intention of creating a communal space conducive to the free-flow of ideas and learning.

Upon first glance, the space feels a bit empty and quiet. But those features are exactly why the idea behind it works so well, as it’s designed to be a space for everyone.

Its rooms and walls, and chairs are all made from wood, as if the space itself represented an unfinished idea that needs inspiration. “People really enjoy this space and usually shocked that we exist. The major difference between old and new is that there are no membership fees, its open and free and you can come open your computer and get to work, people were surprised with

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Entrepreneurship

Shelter, is a communityfocused workspace located in Dubai’s industrial Al Quoz area, which is becoming a hub for art and culture.

“

that concept in Dubai,” says Mary Ames, Educational Programs Manager at Shelter.

The clutter-free space offers a number of features available to visitors and members including a place to work, hold meetings and even host events, with no charge.

In addition, ShelterU, a new education-based initiative, offers a number of courses, many of them free, which are designed around the needs and nature of entrepreneurs and SMEs. Shelter members can also become part of a virtual

Young entrepreneurs now have more clarity with regards to opportunities for investment and support from venture capital funds and governmental organisations. The global financial downturn has created a landscape which promotes freelancing and makes working for yourself an even more attractive proposition than before.

“

community, where they can share ideas and promote their businesses and events.

In terms of the people who spend their time at Shelter, Mary says their visitors truly reflect Dubai’s demographic with a representation of about 10% being Emiratis and 90% expatriates. She added that of recently she’s starting to see more Emiratis, especially young and women Emiratis who are coming to check out the place. One of the most challenging aspects of keeping a place like Shelter up and running, is getting the word out.

Looking to the future, Mary says her team will be working harder to maintain a focus on who they support and how they support them through events and programming. “As this place

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The Pavilion in Downtown Dubai is an ultra-modern workspace geared towards the city’s art enthusiasts.

grows, we’ll be excited to see more traffic in the neighbourhood, because more people, means more ideas.”

Al Serkal Avenue is set to double its size by 2014, to include more galleries and office and work space. The movement to creative a hub for artists and creative types in Dubai, was one that started a long way back, and its growth until now has been organic. Mary expects to see more changes ahead as more companies set up shop there. “Historically there has been some challenge in that area in how businesses are structured here,” says Mary. “The fact that people are more willing to tackle these challenges today is a good sign, that will not doubt lead to economic growth. Plus, it makes the business environment more lively and interesting.”

Industry Watch

The digital divide Booz & Company’s Digitisation Index finds that developing countries must double their level of digitisation in order to catch up with mature economies.

To date, digitisation has already made a significant impact on the ability of emerging countries to create jobs and grow their economies. Between 2009 and 2011, it created 17 million jobs in such economies and contributed USD 350 billion to their overall nominal GDP. Furthermore, Booz & Company’s analysis indicates that a 10-point increase in the digitisation level of a developing market would produce a 0.70% rise in its GDP per capita and a 1.09% reduction in its absolute unemployment rate.

Measuring digitisation

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he digital divide within developing economies is as important as the gap separating emerging markets from the developed world. In effect, these countries, which represent 85% of the world’s population, are lagging behind as a result of inadequate digitisation among their poor populations.

According to management consulting firm Booz & Company, in order to catch up with mature economies, they must focus on doubling the level of digitisation among their poorest citizens, the 3.9 billion at the bottom of the wealth pyramid. These 3.9 billion people represent 95% the population in South Asia, 86% in Africa, 68% in the MENA region, 58% in East Asia and Pacific, 27% in Latin America, 20% in the CIS, and 14% in Eastern Europe. Doing so will considerably advance the national level of digitisation as well as create jobs, increase output, and unlock new market opportunities. This, however, marks a challenging feat as it requires rendering digital applications affordable, accessible and relevant to this underprivileged demographic.

A major dividend

Source: Booz & Company

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Digitisation is characterised by the mass adoption of connected digital technologies and applications by consumers, enterprises and governments.

Booz & Company research shows that the potential benefits of digitisation in developing economies (derived from the innovative business models, products, and services that invariably accompany technological transformation), could lift more than a half-billion people out of poverty in the next decade.

The Digitisation Index was developed by Booz & Company to measure the global adoption of digital technology and to better understand its implications; it is a composite score that calculates the level of a country’s digitisation using 23 indicators to measure six key attributes, which include ubiquity, affordability, reliability, speed, usability and skill. A country’s level of digitisation is measured on a scale of zero to 100, with 100 signifying the most advanced.

The average Booz & Company Digitisation Index score of developing countries is 27, and most of these countries are in the constrained or emerging stages of digitisation. “The average Digitisation Index score among the poorest people in these nations is 17.5, ”said Milind Singh, a Principal with Booz & Company. “The main factor in the low digitisation level is extreme poverty, along with social, and often economic, exclusion. The people in this demographic segment earn less than USD four per diem per capita.”

A USD 4.4 trillion opportunity

Despite such low income levels, the bottom of the pyramid represents the greatest opportunity for capturing the gains in job creation and GDP growth associated with digitisation. In total, in emerging countries, this fraction of society represents 70% of the total population and generates 27% of their total household income. This means that any emerging market striving to leverage digitisation should seek to push up the digitisation score of these citizens.

The study also reveals that doubling the digitisation level for this demographic in emerging economies could produce USD 4.4 trillion in additional nominal GDP and 64 million new jobs, over the next 10 years.

Moreover, it would expand the overall ICT market at the bottom of the pyramid by USD 300 billion over the same period, and would also help to target untapped markets for industries such as financial services, education and healthcare.

Industry Watch

Exports on the rise According to Ernst and Young’s 2012 Rapid Growth Markets (RGM) Forecast, exports from the Middle East and Africa are predicted to grow by more than 12% over the next ten years.

S

imilarly, the 2012 African Supply Chain Foresight report has noted great potential for the African continent as a logistics market. This is due to the fast growth of GDP in some African regions and increased demand for cargo services across most industry sectors. As a result the African logistics market is set to grow over the next five years.

Africa, in particular, has emerged as a key supplier of the resources and raw materials that are powering the growth of emerging economies such as China, India and Russia; a trend that is expected to significantly influence the future demand for logistics and supply chain solutions, with Africa and the GCC as a hub. Many of the products driving the demand for cargo services are derived from natural resources from Africa’s well-known industries of mining, chemicals and agriculture.

“

We see trends in favour of both the African and Middle East logistics sectors, where the GCC serves as a hub. Our immediate plans therefore are to offer reliable logistics and freight forwarding solutions to GCC companies doing business with Africa and the Middle East.

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Frank Courtney, Barloworld Logistics’ Chief Executive for EMEA region, said: “Africa’s positioning as a strategic target market makes it imperative to have a strong and wellestablished logistics sector to supplement the desired growth. According to the report, 58% of respondents are planning to expand their sales into Africa and 44% of respondents are planning to sell through partners. The study also found that 75% of respondents find it difficult to find reliable service providers and partners in Africa. As an African Supply Chain company, Barloworld Logistics is aiming to addressing this gap by further expanding its presence across strategic locations in Africa and the GCC. The company is planning to expand their current supply chain solutions from UAE to the GCC and Africa capitalising on the ongoing transformation of the region.

According to the 2012 survey, South Africa, Angola, Nigeria, Kenya and Egypt represent the largest trading economies in the African trade zones with annual GDP growth rate ranging from five per cent to nine per cent. These countries, which currently serve as economic drivers within their relative trade zones, are expected to generate strong interest for trade and investment from the BRIC (Brazil, Russia, India, China) countries.

Ethiopia, Tanzania, Mozambique and Namibia are recognised as future economic growth drivers in the African region while Sudan, DRC, Angola and Nigeria are also stepping up trade and investment activities, creating long-term prospects for logistics and supply chain management services across Africa.

The survey also shows that China allocates up to 33% of its total outbound investments for Africa on infrastructure development. Other Chinese investment flows involve the mining sector (40.74%), business services (21.58%) and finance (16.4%).

“We see trends in favour of both the African and Middle East logistics sectors, where the GCC serves as a hub. Our immediate plans therefore are to offer reliable logistics and freight forwarding solutions to GCC companies doing business with Africa and the Middle East,” says Courtney. He added: “Digitisation would also enable government services to more effectively reach these citizens, thus creating a platform for greater civic engagement.”

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Industry Watch

UAE real estate feels price pinch Abu Dhabi and Dubai may see prices adjust further given the arrival of more new supplies, according to a recent market report by TASWEEK.

A

bu Dhabi continues to come under pressure from the swing of units coming online. TASWEEK projects rent and sale prices to fall between two and ten per cent in the Emirate across different properties at various locations as new prime and non-prime supply enter the market. The real estate sector is expected to continue moving further in favor of tenants and occupiers after the delivery of an additional 2,900 residential units in Q2 2012. Total stocks are currently at around 199,800 units.

Al Reem Island is a strong residential market, with average rent prices for studios at AED 90,000 and one, two and three-bedroom units coming at AED 100,000, AED 120,000 and AED 160,000 respectively. Many tenants are eyeing good deals at Muroor Road, which offers studio and one, two and three-bedroom units at AED 50,000, AED 60,000, AED 70,000 and AED 85,000, respectively.

As for commercial space, Al Maryia Island has the highest rates at an average rent price of AED 2,600 per square meter. Businesses can find more bargains at Markazeyah, where the average rental rate is 900 per sqm. Commercial

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space for sale at Al Reem Island has an average asking price of AED 10,935 per square metre (sqm).

Despite signs of price recovery in select prime locations, Dubai also may feel the same price squeeze as Abu Dhabi in face of the stream of new supply. Non-prime and less popular areas in the Emirate have been sustaining between two and five per cent price drop since the second quarter of this year.

The Dubai International Financial Centre (DIFC) commands the highest average annual rental rates in the emirate, at AED 75,000, AED 80,000, AED 110,000 and AED 230,000 for studio and one, two and three-bedroom units, respectively. Downtown Dubai is another solid market, with studio and one, two and three-bedroom units going at AED 50,000, AED 65,000, AED 126,000 and AED 180,000 respectively. Tenant bargains can be had at International City, where average annual payments are at AED 21,500, AED 32,000 and AED 40,000 for studio and one and twobedroom units, respectively. Dubai Silicon Oasis also offers good annual rates of AED 24,000 and 40,000 for studio and one-bedroom spaces.

DIFC once again leads the local market in terms of average commercial rent and buy rates, with commercial space fetching AED 16,799 per sqm on the buy side and AED 1,605 per sqm on rental basis. Jumeirah Lakes Towers offers the lowest rates at AED 4,077 per sqm for buyers and AED 535 per sqm for renters.

Conclusion

With the exception of a slight rally observed in some of Dubai’s prime locations, real estate recovery is pressurising property prices in general which continue to fluctuate in Abu Dhabi and Dubai as more units continue to be added to the existing market inventories. This sustains TASWEEK’s earlier predictions that financial obligations and return on investments will be the dominant factors towards market growth through the end of 2012.

Masood Al Awar, CEO of TASWEEK, adds that the expected shift in demand to distressed Eurozone countries could further impact the UAE market. Al Awar explains that more real estate investors are eyeing European bargains in light of the continent’s economic pressures.

GITEX 2012

ZONING IN Making its official debut at GITEX this year, the SME Zone will serve as a conduit for SME ICT companies from the MEA region to engage with a high concentration of influential investors. :)

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he new feature, which is sponsored by Symantec Small and Medium Enterprise, is part of GITEX Technology Week’s intention to boost the potential of SMEs participating in the trade show.

As part of the SME Zone, attendees will also have the chance to hear ICT SME success stories and glean insights from a range of carefully selected experts from around the world at the International Lounge.

SME ADVISOR Middle East

“Our main aim at the SME Zone is to address the key challenges that SMEs in the region are facing with growing information, increased security threats, adoption of cloud and how to effectively embrace and protect mobile devices in their environments. Symantec will also make new product announcements created specifically to help SMEs protect their information and their business,” says Prajit Arakkal,

Director, SMB & Distribution Sales, Emerging Markets, EMEA at Symantec.

Norton by Symantec will showcase a range of its award-winning core security products including Norton 360, Norton Internet Security, and Norton AntiVirus, and highlight the findings of its annual Norton Cybercrime Report with statistics and data about cybercrime victims in the UAE and KSA versus the rest of the world.

The latest Norton 2013 security products are engineered to be safer, optimised for speed and performance, and simpler to use – the products set new benchmarks for protection and performance with five patented layers of protection, stronger social networking defenses, anti-scam capabilities and improved cloudenabled features.

The SME zone will serve as a platform for companies to engage with existing and potential customers and partners, and showcase and share best practices within the industry.

Symantec is looking to engage with as many SME customers, as well as with partners and influencers that impact this segment of the market.

According to Symantec’s latest Internet Security Threat Report, 18% of all targeted attacks are directed at businesses with 250 or fewer employees. What’s more concerning is that more than 60% of the young companies hit by cyber attacks close within six months. “We understand the threats and challenges that SMEs in the region are facing and would like to help them deal with these IT and business challenges so that they can focus on what they do best, their business,” Prajit added.

Trixie Loh, SVP of the Dubai World Trade Centre, which organises GITEX, tells SME Advisor that it was the sucess of a trial run last year that led to the creation of the SME zone.

“Last year’s trial run was a success as it was tailored to maximise return on investment, and for SME ICT businesses from MEA to engage with a high concentration of influential

investors. In 2011, C-level executives at GITEX represented a combined ICT budget of USD 50 billion, and the average order stood at USD 1.2 million. In other words, there was no better platform for SMEs to engage with and benefit from cutting-edge ICT technology and trends,” says Trixie.

In addition, Loh revealed that SME Zone “is completely sold out” as participation from exhibitors reached new highs, compared to last year. “We have doubled last year’s figure, and we are proud to welcome exhibitors from countries like Libya, UK, US, Oman, Lebanon, Jordan, Syria and, of course, the UAE. It is also worth noting that far more SMEs can be found throughout GITEX, as many prefer to exhibit via larger stands in specific sectors,” Loh told SME Advisor.

As far as expected visitor turnout, Trixie says the organisers have set the bar high for this year’s show. “The expansion will certainly result in an increase in deals. GITEX is comfortably one of the world’s top three ICT events, and expects 138,000 industry professionals and over 3,500 suppliers from 144 countries across five continents. This year, over 80% of leading ICT brands are expected, with C-level executives in attendance representing ICT budgets of over USD 50 billion. For an ICT SME, there is no better place to generate business,” she says.

The regional SME market has become a main focus for ICT companies in recent years, as more and more companies invest in cloud, mobile and other advanced technologies. Based on new figures by IT market intelligence specialists IDC, IT spend

by SMEs in the region is set to rise from last year’s outlay of USD 16.73 billion to

IT spending by SMEs in MEA region

USD

24.48 billion

expected by 2015

Source: IDC

Saudi Arabia

11%

UAE

9%

Turkey

12%

South Africa

26%

L - R: Johnny Karam Regional Director, Middle East & French Speaking Africa, Symantec; Tamim Taufiq, Head of Consumer Sales, Norton; and Justin Doo, Cloud & Security Practices Director, Middle East & Africa, Symantec, during a recent press conference unveiling Symantec’s SMB Cloud Adoption Survey.

USD 24.48 billion by 2015. Most of last year’s financial activity was split between Saudi Arabia (11%), the United Arab Emirates (9%), Turkey (12%) and South Africa (26%), and this geographic trend is expected to continue in the coming years.

Symantec will also highlight the findings of its 2012 SMB Cloud Adoption Survey during GITEX, which revealed that 50% of organisations are more likely to adopt cloud services if it would guarantee 24/7 protection of business critical information.

Besides protection, the survey also finds that time saving is another strong motivator for SMEs to adopt IT cloud services. The survey results provide insights into how organisations with less than 250 employees perceive cloud services, while highlighting the awareness and business attitudes toward cloud technologies, in addition to overall business and IT challenges of the SME market segment.

Symantec’s executives first unveiled the survey’s findings at a recent press conference in Dubai.

In addition, the SME Zone will host presentations by Symantec executives at the International Visitors Lounge on How To Address the IT Threat Landscape for SMEs, as well as Redefining How SMEs Safeguard Their Information. Top-level executives representing SMEs from around the MENA region will take the stage including Qalamsoft, Acentria Solutions, Wayira, Bazarsoft, MBIS and Rhea Solutions. The speakers will share success stories along with their best practices and strategies.

SME Advisor ME is the Official Media Partner of the SME Zone and will be onsite covering all of the latest developments.

Please visit www.smeadvisor.com or, follow us on Facebook: SMEAdvisorME, or Twitter: @SMEAdvisorME for live updates.

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GITEX 2012

PUBLIC SECTOR PARTICIPATION

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ubai eGovernment Department has announced that it has made intensive preparations for its participation in the 32nd edition of GITEX Technology Week. The Department further revealed that it has established administrative and technical teams to complete the necessary preparations to host more than 26 governmental entities in Dubai at its exhibition stand, which covers an area of about 2,700 square metres.

Dubai eGovernment kicked-off its preparations for GITEX early this year by forming teams of event organisers and technicians for the design and construction of the exhibition platform. The teams also consulted with other government departments in Dubai to cater to their respective requirements and help ensure a successful showcase of all eServices being offered by different departments. Dubai eGovernment has also established a special media team to communicate with

Portability and perfomance Lenovo is set to showcase its latest consumer Idea product range at the Middle East’s largest technology exhibition, GITEX Shopper. Reinforcing its bid for the number one spot in the global PC market, the company will aim to wow consumers with a world-class line up of IdeaPad innovations including the new-to-market thin and light IdeaPad S300 and S400 laptops.

The IdeaPad S300 and S400 strike a balance between portability and performance for consumers

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various major print, broadcast and online media organisations and ensure adequate coverage for its participation in the event.

Dubai eGovernment has designed its exhibition stand to reflect its slogan “customer first” and in line with its strategy of promoting a “centralised” platform for policy-making and delivery of common services, and decentralisation in designing and launching services that are unique to each department.

HE Ahmed Bin Humaidan, Director General of Dubai eGovernment, said: “The unified exhibition platform of different government agencies reflects our commitment to achieve government integration by promoting effective coordination between participating parties, and providing the means, channels and equipment to educate the public about relevant government services.”

“We attach particular importance to the promotion of electronic services being provided by government agencies, and

who want more computing power than a netbook, with long battery life at a more affordable price.

Measuring just 21.9mm thin (less than one inch) and weighing 1.8kg (less than four lbs), the new S Series features a sleek exterior design with a stylish metallic finish powered by a 3rd generation Intel Core processor. The S Series laptops combine comfort, simplicity and responsiveness to give consumers an affordable PC with quality construction and solid performance.

Commenting on Lenovo’s participation in the annual consumer trade show, Ahmed Khalil, General Manager Lenovo Gulf and KSA said, “GITEX Shopper is an annual highlight for Lenovo’s Middle East business, and represents a great opportunity for our team to meet and interact with consumers, helping them find the best PC product to suit their needs. As a global leader, Lenovo’s success rests on our ability to deliver consumercentric innovations that deliver a blend of mobility, performance and price, and visitors will see all this and more at GITEX Shopper this year.”

Lenovo will also be showcasing Y, G and Z Series IdeaPad ranges. The Y series is ideal for gamers, movie buffs and audiophiles, packing raw power, slick design and startling innovations including; two 1.5 watt stereo JBL-designed

innovative channels that enable the public to easily and conveniently access these services. This will enable us to achieve positive results in the continuing digital transformation of the emirate, while increasing the adoption of electronic services and making them the preferred service platform by the public,” he added.

Dubai eGovernment further pointed out that its exhibition stand is designed to showcase various government services according to each targeted audience, such as citizens, residents, businesses and visitors. The presentations at the stand aim to shed light on the nature of eServices, while highlighting the latest applications of these services, including the use of SmartPhones. It also seeks to create awareness about the efforts being undertaken by Dubai eGovernment and other participating government agencies to integrate under one umbrella different government services being delivered to various target audiences.

speakers with Dolby Home Theatre V4 Enhanced audio, and a 1 megapixel webcam.

The Z series offers a balance of price and multimedia features, productivity and security. The Z Series, available in a range of colours, also has Lenovo’s large “Intelligent Touchpad,” optional DVD or Blu-ray player, and a standard six-cell battery for longer computing power.

Consumers looking for an everyday PC that combines a wide range of features at a comfortable price can check out the G series range, ideal for use as a primary laptop or second home computer.

“The PC industry is navigating a period of changing dynamics, with emerging markets really driving the next wave of expansion. Lenovo continues to spearhead market growth and we are confident in securing global leadership position.

To achieve it, we fall back on the innovation that is built into the DNA of our business and into the suite of technologies that you will see on display at GITEX,” added Khalil.

Lenovo will also be showing its latest all-in-one devices including the Lenovo IdeaCentre A720 and B540. The IdeaCentre is a one-stop-shop for home entertainment including multi-touch, massive storage, intense graphics and much more.

GITEX 2012

INTELLIGENT NETWORKS

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his year, Cisco will showcase its innovations under the theme of Intelligent Networks Transform Your Business that will examine how organisations can harness the power of intelligent networks to simplify and speed up the deployment of both current and future technologies to drive business transformation. In an increasingly connected world where information dissemination and consumption is growing, the need for an intelligent and reliable network has never been more apparent.

Cisco, in collaboration with its sponsor partners Emircom (Data Centre and Virtualisation Partner) and B-Smart, will showcase its various solutions across an unprecedented eight exclusive demo areas each dedicated towards Cisco’s solutions across its portfolio which include data centres and virtualisation, borderless network and collaboration solutions: • Networked healthcare: The Mobile Doctors Healthcare demo will showcase a clinical assistant and video contact centre to demonstrate how Cisco’s Networked Healthcare provides the industry-specific framework that is required to meet healthcare’s unique needs for interoperability, security, availability, productivity and flexibility.

• Networked classroom: Cisco’s comprehensive solution portfolio of intelligent, network-centric solutions, including video, collaboration, and virtualisation will show how students and educators can have access to the tools that enhance the learning experience.

• Networked banking and retail: The Branch of the Future area demo will showcase how intelligent networks can transform a bank or a retail outlet by connecting customers, increasing employee collaboration and reducing operating expenses to drive business growth.

• Collaboration in a box - showcasing Cisco’s web conferencing solutions including Webex, Jabber, Ex90 and Video.

• Defense (Army Tent, Tactical units) and how connectivity can greatly impact the defense sector.

• Contact centre – which will showcase customer care mobile apps, video IVR and social miner….

• Cisco capital: This year will also see an exclusive zone hosting Cisco Capital, Cisco’s very own financing arm that helps customers get

easier access to our next generation network solutions through flexible financing options.

• Home Networking Business Unit (HNBU): to learn more about our new solutions and network devices to create a seamless network environment for your home.

“2012 has been an exciting year for all of us here at Cisco. Cisco’s commitment to this region is underlined by our continued focus on innovating and bringing best-in-class solutions that will deliver the transformation and the results that businesses across the Middle East region seek. Technology events in the region provide us with great platforms to come together, showcase our new capabilities and most importantly meet and network with our potential customers. Amongst the many important events in our calendar, GITEX remains the largest and most anticipated platform every year. It is an opportunity for us to connect with key business decision makers and continue to build relationships with our customers and partners.” said Rabih Dabboussi, General Manager, Cisco UAE.

4G and LTE: Fueling demand Industry experts believe that the next generation of advanced mobile telecommunications services, commonly known as 4G, is expected to continue spreading rapidly throughout the GCC with the United Arab Emirates and Saudi Arabia leading the way. Ushered in with the advent of long term evolution (LTE) technology, 4G allows SmartPhone users to migrate from 3G’s largely voice-based offering to enjoy the super-high internet speeds, 150 Mbps downlink, 50 Mbps uplink, required to access massive volumes of video and data.

The 4G revolution and LTE technology will be among the key discussions at this year’s Gulfcomms, held at GITEX Technology Week 2012. As the largest business-to-business exhibition for the sector’s carriers, cable, fixed telecoms, Internet Protocol (IP) and satellite across the MEASA region, it opens unparalleled opportunities to solution providers in the fields

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of telecommunication networks, next generation networks, IP technology, satellite communications, infrastructure solutions, backhauling, and teleconferencing. The headline sponsor of this year’s Gulfcomms is Vocalcom, which provides world-class social contact centre solutions, mobile and web live customer service software, social customer relationship management (CRM) solutions and in-store connected kiosks to engage customers using cloud technologies.

With a recent International Telecommunication Union (ITU) report noting that youth account for 60% of the population in the Arab world, it comes as no surprise that platforms such as video sharing and social media and smartphone applications are fast being adopted as a key part of a digital lifestyle. According to research powerhouse Gartner, the sale of smartphones grew 58% in 2011, with units sold worldwide in 2011 reaching 272 million, this accounts for 31% of all mobile device sales.

LTE is enjoying dynamic growth and uptake among global operators, including the UAE’s du, as its technology is easily merged with legacy mobile technologies, making the upgrade from 3G quick and cost-effective. According to the Global mobile Suppliers Association’s (GSA) Status of the LTE Ecosystem report, 347 LTE devices, including 64 smartphones, were launched as of March of this year by 63 different manufacturers. 2011 saw more than 8.2 million LTE enabled device shipments worldwide, with industry analysts expecting that number to reach 30 million by the end of 2012.

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5th December 2012

For a chance to be celebrated as one of the region’s top SMEs, enter your nomination at:

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GITEX 2012

THE BYOD BOOM

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ITEX 2012 is set to rigorously examine both the potential and issues associated with the Bring Your Own Device (BYOD) phenomenon at the Consumerisation of IT Forum.

Featuring prominent experts such as Dave Brook, General Manager Middle East, Dell, and Todd Thibodeaux, President and CEO of the Computing Technology Industry Association (CompTIA), the hot topics up for discussion include challenges faced by today’s CIOs, how to benefit from BYOD’s cost saving potential and methods of establishing robust policy frameworks to reduce legal and liability risks. Fayyaz Alam, Vice President, IT Production Services, Emirates Group will also deliver an in-depth case study on striking a balance

between end-user demands and enterprise information security requirements, touching on everything for coping with workforce needs and expectations to the complexities of managing the impact of BYOD. The Middle East’s receptivity for BYOD was vividly illustrated by a recent study by networking vendor Aruba Networks, which noted that 80% of companies in the region allowed some form of access to personal devices, the highest in the world. According to ABI Research, 2.4 billion employees will be using SmartPhones in the office worldwide, a growth rate of nearly 17%. Looking at the big picture, a report by MarketsandMarkets predicts that the BYOD and enterprise mobility market will reach USD 81.39 billion by 2017, increasing by 15.17% each year.

Nevertheless, the BYOD boom is not without its pitfalls. A study by Forrester Consulting found that 86% of surveyed IT decision-makers in the UK, US and Germany pegged data security as the number one concern, while almost half (47%) of enterprises allowing employee-owned devices to connect to a company’s network reported experience of a data breach.

Elsewhere, KnowBe4 and Information Technology Intelligence Consulting flags up the worrying observation that 71% of businesses that allow BYOD have no specific policies and procedures in place to support deployment and ensure security. Common BYOD risks often stem from the lack of company-wide protection after employees download malware hidden within legitimate apps, click on a malicious links or open dubious attachments.

“With an increasingly tech-savvy workforce and employees focused on productivity, companies in the Middle East have everything to gain from fully embracing the consumerisation of IT trend and the desire to be increasingly mobile,” said Dave Brook, GM Middle East, Dell, which is a strategic sponsor of the Consumerisation of IT Forum. “The improved ability to work anywhere appears to be driving higher productivity for employers, with employees looking to be evaluated on the output of their work versus the number of hours spent.

These factors are redefining the workplace, and we feel that, at Dell, we are providing the products and solutions companies and employees are looking for as they navigate this new environment,” he adds.

A new focus on security Barracuda Networks, will be demonstrating its new Web Application Firewall 7.7. during GITEX 2012. Sherif AbdElGawad, Barracuda Networks’ General Manager Middle East and Africa, and Wieland Alge, Vice President and General Manager EMEA, will be present to share the company’s strategy for the region, the IT security threat landscape and Barracuda Networks’ product range.

“The Middle East and Africa region is exerting increasing influence on the global economy with technology acting as a prime enabler for this growth,” said Wieland Alge, General Manager EMEA, Barracuda Networks.

“However as technology use increases so does the threat from hacking attacks, DoS (Denial of Service) and Internet viruses. Our customers tell us that security remains the number one concern for many organisations and demand for Barracuda Networks’ proven expertise and products is proving extremely high.”

To cater to this demand Barracuda Networks has embarked on a channel-focused strategy for the region. “Barracuda Networks continues to build a strong presence in the region to satisfy the increasing demand

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for security with local knowledge. With an aggressive channel partner recruitment drive in place, and partnerships with Redington Gulf and Alpha Data already signed, we’re continuing to expand at a rapid pace,” said Sherif AbdElGawad. “Our recruitment strategy remains focused on developing partners with specific sector skills and more partners will be announced in the next few weeks.”

As well as unveiling Barracuda Web Application Firewall 7.7, Barracuda Networks will also be demonstrating its full portfolio of products including Barracuda NG Firewall, Barracuda Spam and Virus Firewall, Barracuda Web Filter (with new social media filters) and Barracuda Message Archiver.

Technology for business

Making the switch New VDX 8770 Switch provides impressive ethernet fabric scalability for the world’s largest data centre environment. and service providers striving to both simplify and scale-out their data centre infrastructure in order to accelerate new service introduction and drive innovation, while also lowering costs.

With more than 700 customers who have already installed Brocade VDX switches, Brocade is building on the success of its VCS fabricenabled switch portfolio with the addition of the modular Brocade VDX 8770 Switch. The newest family member is built to support the largest data centres, delivering unprecedented simplicity and automation along with massive scalability and performance, all while offering superior investment protection.

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Simplicity and automation

rocade has announced a switching platform, the Brocade VDX 8770 Switch, along with VCS Fabric technology enhancements that take data centre network simplicity, efficiency and resiliency to a new scale.

The Brocade VDX 8770 is designed for enterprises

The Brocade VDX 8770 and VCS Fabric technology deliver a radically simplified data centre network. Designed specifically for highly virtualised environments, Ethernet fabrics built on VCS Fabric technology accelerate application deployment and enable faster virtual machine

(VM) migrations through zero -touch VM discovery, VM mobility and VM port configuration migration.

Using VCS fabrics, customers can manage dozens of switches as a single logical device, dramatically reducing operational costs. They can also save installation time as new switches self-provision when they are connected to the fabric.

Scale and performance With today’s virtualised and cloud-centric data centre architectures, application performance is highly dependent on the efficiency and utilisation of the network infrastructure. VM density per server is also rapidly increasing as customers seek to maximize server utilisation. To support these requirements, they need a high-performance network that can scale out on demand to address immediate business needs.

The Brocade VDX 8770 provides unprecedented fabric scalability for the world’s largest data center environments, enabling customers to expand a single VCS fabric up to 8000 switch ports with up to 384,000 VMs attached to the fabric, 20 times the scalability of the leading competitor. Designed for today’s real-time applications, the Brocade VDX 8770 also delivers the industry’s lowest port-to-port latency at 3.5 microseconds across all 1 Gigabit Ethernet (GbE), 10 GbE and 40 GbE ports—half the latency of the nearest competitor.

Enhanced virtualisation offerings VMware unveils new VMware vSphere 5.1 solutions to help SMEs simplify and protect IT with industry-leading virtualisation, business continuity and automated management.

Virtualisation is now mainstream amongst SMEs, with companies increasingly focused on extending the benefits of virtualisation to improve IT availability and backup / recovery. Recent studies by Spiceworks found that 77% of SMEs are either using or planning to use virtualisation software by the second half of 2012, and that of those who have already virtualised, more than 75% have chosen VMware vSphere as their virtualisation solution.

Built on the industry’s most proven and reliable hypervisor architecture, VMware vSphere delivers application performance and availability for the most demanding business-critical applications. The new solution will include more than 100 enhancements and new features thatcan increase efficiency, reduce IT operations costs by as much as 30% and guarantee application service levels.

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VMware vSphere 5.1 Essentials Plus: Advanced virtualisation in a simple package With the release of VMware vSphere 5.1, VMware will significantly extend the capabilities of VMware vSphere Essentials Plus to include: • VMware vSphere Storage Appliance 5.1: VMware vSphere 5.1 will include an updated VMware vSphere Storage Appliance for Essentials Plus, which transforms servers’ internal storage into a shared storage resource, enabling customers to use advanced VMware vSphere business continuity features such as VMware vMotion and High Availability without shared storage hardware.

Enhancements will make it easy for customers to extend these benefits to existing

VMware vSphere and Remote Office/Branch Office (ROBO) environments and reduce infrastructure costs by running VMware vCenter Server in a VM within a VMware vSphere Storage Appliance cluster.

VMware vSphere Storage Appliance 5.1 will support RAID 5, 6, and 10 and also makes it easy for customers to add storage capacity online to keep pace with data growth.

• VMware vSphere Data Protection: VMware vSphere 5.1 will include new backup and recovery capabilities which enable users to quickly set backup policies within VMware vSphere. VMware vSphere Data Protectionwill leverage proven production expertise to reduce cost and management overhead by enabling agentless backups with built-in de-duplication.

• VMware vSphere Replication: Replication is a key component

of any disaster recovery plan, and VMware vSphere 5.1 will include array-agnostic replication capabilities. VMware vSphere Replicationwill allow customers to replicate virtual machine data over the LAN or WAN for efficient, simple disaster protection. For those customers that want to simplify and automate disaster recovery, VMware is introducing a new version of VMware vCenter Site Recovery Manager that will include support for VMware vSphere 5.1 Essentials Plus.

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Recognising Industry Excellence at the Big Project ME Awards 2012 ConstruCtion Categories • Outstanding Development of the Year • Iconic Structure of the Year • Joint Venture Project of the Year • Consultant of the Year • Contractor of the Year • Developer of the Year • MEP Contractor of the Year • Quantity Surveyor of the Year Behind the ProjeCt • Architect of the Year • Project Manager of the Year • Young Engineer of the Year sustainaBility • Best Water Conservation Project • Energy Efficiency Project of the Year • Green Building Project of the Year • Sustainable Solution of the Year editor’s ChoiCe Category • Infrastructure Project of the Year

Submit your Nominations Now Nomination Deadline Tuesday, October 23

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Technology for business

Analyse and protect Trend Micro enhances its ever-evolving cloud-security infrastructure for advanced cloud, mobile and targeted attack protection.

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rend Micro has announced an expansion of the Trend Micro Smart Protection Network, the cloud-based security infrastructure introduced in 2008 that powers most of the company’s products and services. The latest iteration of the Smart Protection Network incorporates advanced big data analytic capabilities that enable Trend Micro to identify new security threats across a broader range of data sources, delivering global threat intelligence that stops threats even faster than before.

These capabilities, especially crucial in the era of mobility, cloud adoption, and advanced persistent threats and targeted attacks, have been integrated into the Smart Protection Network in order to tackle the dramatic volume, variety, and velocity of threats. With this announcement, the Smart Protection Network now includes: • Newly added technologies, including mobile app reputation (for mobile threats), vulnerability rules (for vulnerability and exploits), network inspection rules (for network communications), and in-thecloud whitelisting (for minimising false positives).

These combine with the Smart Protection Network’s existing reputation technologies -- Web reputation, e-mail reputation, and file reputation – to further Trend Micro’s global threat intelligence, one of the most comprehensive in the world.

global threat intelligence across many threat vectors, Trend Micro delivers protection against the wide variety of attacks today.

• An evolved cloud infrastructure, allowing for a greater capacity to collect massive amounts of threat data without consuming bandwidth on customers’ networks and endpoints. Trend Micro was one of the first security companies to move beyond the conventional approach of resident protection and utilise the power of the cloud to block threats before they reach users. The Smart Protection Network provides automated protection through its cloud infrastructure enabling Trend Micro to protect customers across physical, mobile, virtual, and cloud environments.

• New, customised tools to correlate critical relationships among all the components of an attack, and model cybercriminal behavior and the environments they work in to quickly determine whether something is good or bad. This modeling allows Trend Micro to proactively identify new threats from the data streams using behavioralbased identification methods. By correlating

Trend Micro customers benefit from these new capabilities, receiving real-time protection against today’s threats through efficient, cost-effective, adaptable security solutions and services from Trend Micro. Products like Trend Micro Deep Security, the company’s flagship product for physical, virtual and cloud environments; Trend Micro Deep Discovery, an innovative Advanced Persistent Threat detection solution; and Trend Micro Titanium security solutions for consumer endpoint security; as well as Trend Micro’s mobile, messaging, and gateway solutions.

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Technology for business

All-in-one printers Canon Middle East has launchned four new compact All-In-One PIXMA printers which feature comprehensive new software offerings designed to enhance the printing experience.

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he new PIXMA MP230, MG2250, MG3250 and MG4250 are optimised for printing documents from the internet and photo lab quality images at home. The printers are the first PIXMA models to include, as standard, My Image Garden, a one-stop platform that combines all software currently available for Canon PIXMA printers into a single, easy-to-use interface. The intuitive software also includes a range of new, advanced, user-friendly features, such as Automatic Suggestion, Automatic Layout and Face Recognition.

In addition, the printers are compatible with Print Your Days, Canon’s new Facebook app for PCs that has been designed to make it easy to send and print photos directly from Facebook to a Canon PIXMA printer without the need for any additional software. The app includes tools to allow users to automatically adjust photo layouts and create unique collage prints with up to five photos printed on a page. It also provides a range of style and editing options to add a further creative twist to photo printing.

Creative Park Premium, Canon’s free resource for downloading and printing cards, printable crafts and stationery, is also available through My Image Garden and features a new, easy-to-use photo selection process that enables users to display, download and print images through a single user interface. New content from the likes of National Geographic and NASA is now available, including beautiful photos that can be used to create

PIXMA MG2250 The new MG2250 is a competitively-priced printer with print, scan and copy functions, and features a seven-segment LCD display. Perfect for those looking for a compact and affordable printer for personal use, the MG2250 features Canon’s FastFront design, saving desk space and making it quick and easy to replace ink cartridges and paper.

PIXMA MG3250 calendars and a selection of printable crafting templates for building 3D space shuttles.

All four new PIXMA printers feature Auto Power Off and a new Auto Power On setting, which makes printing from a powered-down state quick and convenient. Documents or photos can also be sent from a wireless device and printed with ease without the need to manually switch the printer on beforehand, or off after printing. Quiet Mode, also available on the new PIXMA models, provides the option of a quieter printing experience.

PIXMA MP230 The new PIXMA MP230 is an affordable printer with print, scan and copy functions, perfect for first-time printer owners, students and young families looking for a home printer. With a stylish matte black design and compact footprint, the printer requires only minimal desk space and comes with print speeds of ISO ESAT 7.0ipm for mono and 4.8ipm for colour prints.

The PIXMA MG3250 includes all the features of the MG2250 but offers faster print speeds of 9.2ipm for mono and 5.0ipm for colour images. The MG2250 also features built-in Wi-Fi and a free SmartPhone and tablet app for printing photos and scanning, to give greater printing flexibility around the home. For the environmentally-conscious user, the MG2250 also features Auto Duplex (double-sided) printing which can cut paper costs by up to 50%.

PIXMA MG4250 The PIXMA MG4250 is a feature-laden, compact, All-In-One printer. It comes with a 6.2cm colour TFT display for printing easily without a PC and also offers a broad range of connectivity options. The MG4250 features built-in Wi-Fi and the PIXMA Cloud Link, which includes direct access to Picasa online albums, Web Template Print and Google Cloud Print. This flexibility to connect over a range of wired and wireless technologies provides users with the freedom to print from almost anywhere in the home and from a host of wireless devices.

Going mobile with the cloud Info2cell.com has revealed that it is leveraging the capabilities of its Value Added Services Cloud or I2C VAS Cloud technology platform as part of a new strategy that seeks to complement the rapid SmartPhone penetration in the MENA region.

SmartPhone penetration has reached up to 46% in various countries within the region. The Info2cell VAS Cloud provides an internet-hosted solution for content providers seeking to readily implement mobile messaging and billing services, delivering seamless integration over a single interface to more than 40 operators in the Middle East region.

Info2cell.com further revealed that it will continue to channel investments to further expand the I2C VAS Cloud platform, aiming to enhance connectivity with operators, strengthen support to all kinds of billing systems, prove the MSISDN enrichment in WAP/ Mobile WEB billing, and further improve compatibility with various types of tablet and SmartPhone devices. I2C VAS Cloud supports two main business streams as it can be used as a billing gateway for service providers, and as a customer care support service platform. Moreover, it supports the MT billing system where the

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user gets billed when receiving a message, as well as MO billing system where the user gets billed when sending a message.

Bashar Dahabra, Founder and CEO, Info2cell.com, said: “The robust growth of the SmartPhone market in the MENA region has given us greater leverage to invest in the Info2cell VAS Cloud platform, which is an important technological breakthrough that reinforces our competitive edge as the leading mobile service application provider in the region. I2C VAS Cloud serves as a reliable, secure and efficient platform that provides seamless integration with operators in the region, while supporting all kinds of billing methods. Building on this new state-of-the-art technology, Info2cell.com is refocusing its growth strategy as we continue to expand our core offerings and satisfy the evolving demand and needs of content providers as well as smartphone users in the region,” he added.

SIGN OFF

Practice makes perfect SME Advisor Sub Editor Joumana Saad takes the pulse on key business trends in the region and gives an update on upcoming events to add to your calendar.

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Joumana Saad CPI Business

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he past month has been a notable one for us, as we attended a number of high-profile events were held addressing key challenges SMEs are currently facing. The 3 rd Middle East SME Forum, which took place on 17 th and 18th September in Abu Dhabi, was truly a meeting of minds, as experts and SME executives from around the region gathered to discuss best practices and lessons they have learned along the way. One of the more interesting presentations was a case study by Hassan Al-Hazeem, Managing Director of Intercoil Group of Companies. He shared his success story and key strategies that have contributed to the company’s growth. He emphasised social media as as a crucial tool for SMEs to gain brand exposure on a budget.

We’ve also had the pleasure of hosting our first Success Series event in Ras Al Khaimah.The SME Advisor Success Series was held in conjunction with RAK Free Trade Zone under the theme Best Practice Trade and featured industry experts from Al Tamimi & Company, Tejari, du,

SME ADVISOR Middle East

ADCB, and Barlow World Logistics, who spoke about how finance, logistics, legal issues and the Internet are influencing the way the world trades. Representatives from RAK FTZ companies who attended also enjoyed networking and one-on-one consultations with the speakers. For complete coverage of the event, please see page 24 of this issue.

We will continue our Success Series roadshow in the coming months by holding similar events in free zones throughout the UAE. Revisiting one of the most critical issues for SMEs in the region today, Dubai SME recently opened the Second Corporate Governance Conference for SMEs. The conference aims to promote implementation and exemplary practices of corporate governance and bring SMEs that have initiated corporate governance under the spotlight.

A guide on effective execution of corporate governance and a case study on how SMEs in Dubai have implemented corporate governance was also launched at the conference. Attendees listened to presentations on the

latest developments in this area by Hawkamah and Taylor Wessing, and also heard from business leaders of local SMEs like German Imaging Technologies and Just Falafel, who have made headway in implementing corporate governance practices and procedures.

We will soon be at the centre of GITEX Technology Week, one of the region’s largest most exciting events of the year. This year will be interesting to say the least, as we will be closely following the activities at the new SME zone, of which we are the Official Media Partner. For more details on what to expect this year at GITEX and the SME Zone, please see our cover story on page 52.

Be sure to submit your nominations for the 2012 SME Advisor Stars of Business Awards which will be held on 5th December. We are quite impressed with the high number of quality submissions we’ve received so far, and look forward to the judging process. For more info on the Stars of Business Awards and Summit, please visit: smeadvisor.com/awards2012.

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