SME Advisor Middle East - January 2015

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ISSUE 107 strategic SME partner

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Aiming high in the New Year with the White House's LAURA SCHWARTZ

M&As The end of the beginning?

2015 Just a number or the year you make a difference?

Strategies for getting the staff you need

Street

life

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EDITORIAL COMMITTEE SME Advisor is delighted to announce that during 2015 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our new Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever - analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Avishesha (Avi) Bhojani Avishesha (Avi) Bhojani is the CEO of Bates PanGulf (BPG) Group. At the helm of the BPG Group since 1991, he is responsible for consolidating the Group’s interests across advertising, public advocacy, public relations, design, activation, media asset management and digital verticals, in the Middle East and North Africa region.

He is also instrumental in the conceptualisation and execution of a number of strategic retail initiatives ins Dubai such as Dubai Shopping Festival and Dubai Summer Surprises.

reflected his passion and commitment to the development of UAE nationals as business professionals, young entrepreneurs and future leaders. Previously he has worked with the National Human Resource Development and Employment Authority, as the Director of Tanmia – Dubai Office, then became the Vice President of Human Capital at the Dubai World Trade Centre, and later on the Deputy General Manager of the Emirates Institute for Banking and Financial Studies.

Professor Val Lindsay, MSc (Otago), MBA (Victoria), PhD (Warwick) Dr. Val Lindsay is a Professor in Strategy and International Business, and Dean of the Faculty of Business at the University of Wollongong in Dubai (UOWD).

She has a keen interest in teaching and research in the areas of international strategy, exporting, services internationalization, entrepreneurship, small and medium-sized enterprises, networks and clusters, and economic development.

His Excellency Abdullah Saeed Al Darmaki His Excellency Abdullah Saeed Al Darmaki is the Chief Executive Officer of the Khalifa Fund for Enterprise Development, a government entity that spearheads the support and development of Small & Medium enterprises in the UAE. His role is integral to the strategic planning and management of the organisation in alignment with the Executive Council’s objectives.

With Over 17 years of experience in Oil & Gas, Petrochemicals and Manufacturing industries, and a background in Sales & Marketing, he has held a number of leadership positions with governmental and private organisations in the United Arab Emirates.

Essa Al Zaabi Essa Ali bin Salem Al-Zaabi is the Senior Vice President Support Services at Dubai Chamber of Commerce & Industry, and the director of the Dubai Chamber initiative, Tejar Dubai. He is a proven UAE leader and business entrepreneur, with the ability to rapidly mobilize teams to achieve organisational change and integration. A self-motivated team-builder and corporateperformance driver, he has held a number of key positions throughout his career that has

Mohan Valrani Mohan Valrani – 74, came to Dubai in the year 1966 and has been staying in Dubai for last 48 years. Mohan Valrani is the Senior Vice Chairman & Managing Director of Al Shirawi Group of Companies, which is a large conglomerate in the United Arab Emirates and one of the largest in the Arabian Gulf, with headquarters in Dubai (UAE).Apart, from his business activities, he is also deeply involved in social activities. He is the founder - Chairman of the India Club and on the Board of Trustees

of The Indian High School and has been as instrumental in contributing to the success of these institutions.

Roberto Mancone Roberto Mancone is the Global Head of Business Products for SMEs and MidCorporate for PFB Germany, PBC Int’l and Postbank. He is Chairman of the Global Credit Product, Deposit and Payments Executive Committee of the Private and Business Clients Division of Deutsche Bank.

He is Board Member of the Advisory Board of Deutsche Auskunftei Service GmbH, Chairman of Business Advisory Council of EFMA, member of ECGI (European Corporate Governance Institute) and Member of the Advisory Board of BAA, the Alumni Association of Bocconi University and SDABocconi.

Yogesh Mehta Yogesh Mehta is the Managing Director of Petrochem Middle East. He graduated with a Bachelor of Science in Chemistry from National College Bandra in Mumbai, India. Over time he opened his own chemical trading business, which enjoyed fair success. He then relocated to Dubai in 1990 and within five years, he managed to establish a business by opening a state-ofthe-art storage terminal for bulk and drum chemicals. Driven by passion and a need to succeed, he established Petrochem Middle East in 1995 with friend and business partner David Lubbock. Petrochem Middle East has since grown from strength-to-strength to become one of the largest independent petrochemical distributors in the Middle East. A self-made billionaire, His greatest attributes are mentoring and leading by example.

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FROM THE EDITOR Customer-first in 2015? Or another mis-match?

Something that often surprises me - especially given my own background as an insurer and a retailer is that in the SME sector we hear very little mention of the one thing that is the single most important element in our commercial success: the customer. The reality is that while other factors might be highly significant (getting finance, recruitment strategies, marketing and so on), none of these are of any significance whatsoever compared to our ability to find customers for what we do. This may appear obvious, but clearly it isn’t, because we actually see very little dialogue about to how to provide what customers want - and in the SME space, there is only limited research here in the region about customer buying trends outside of the FMCG sector.

It’s one thing for Steve Jobs to claim that he never did any market research, but this is the prerogative of genius, thinking so far ahead that yes, of course, we would want buy whatever he suggested (I’ll have two of them, please). Most of us aren’t so gifted and we have to take some time to ponder what the customer actually needs and expresses an interest in - and then provide it accordingly. Yet as long as we remain so closely focused on the role of the entrepreneur - positioning this figure as someone who can move mountains and sway the populous to do whatever he or she wants - we’re going to be missing the most critical understanding of how to build our business, ie, the simple fact that to make any money we have to find a way to get people to buy the things we produce.

As we all know, the dialogue with the customer is seldom an easy one; the customer may be king, but often isn’t actually right, and will also seldom be fair-minded when you might want him or her to be. Sadly, there is no option but to rise to the challenge, and it seems very good timing if here, at the beginning of 2015, we decide to confront he various complexities and finally get to the bottom of what it is our customers most want and - of course - understand as well what they don’t. The great customer service guru Ron Kaufman (who contributed an article to SME Advisor earlier in 2014) makes the point that it’s not just the actual end-product or service that the customer will judge, but whether your business gives all the right signals along the way. If these are out of kilter with expectations, and there is a mis-match with previous good experiences, it really won’t matter what the final product is like, because you turned the customer off too soon.

Will your SME be giving the right signals in 2015 and reaping the rich rewards?

Enjoy this issue of SME Advisor!

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Contents

There will be 26 billion devices on the Internet of Things (IoT) by the year 2020 according to the research firm Gartner.

34

p14

The key factors around the success of any business would be around people, finance, sales and marketing. p52

07 Editorial Committee SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events.

09 Editor’s Note Paul Godfrey reinforces the old adage: “Customer is king”.

12 Data and decision making Our new infographic section showcases key trends shaping the SME marketplace.

Ground level 14 Top 10 trends in 2015 – what’s hot and what’s not?

A comprehensive listing of trends that stand to leave a lasting impression in the New Year.

18 Does your SME know it all?

Market intelligence and how it can supercharge your business.

22 The word on the street.

Simple rules for keeping your fleet in tip-top running order…

sme advisor ISSUE 107

42

18

52

2014 – The Year in Pictures 26 Key themes in 2014.

We dissect the year into seven critical themes and highlight activities that shaped the SME sector.

Finance & Growth 34 The Dubai Economic Council weighs in on M&A growth.

Senior Economist Ali Tawfik Al Sadik offers his expertise…

The next level 52 Gearing up for 2015 – what EO’s Accelerator can do for you?

We meet the man driving this initiative – Saahil Mehta, Co-chair and Communications chair, EO Accelerator UAE.

Movers & Shakers 38 An exclusive chat with Laura Schwartz.

A meeting with the former White House Director of Events, bestselling author, motivational speaker and business owner.

Trade and Export ME 55 Presenting our new comprehensive section, Trade and Export ME – a practical, informative and incisive guide for the trading community in the region.

SME Beyond Borders 42 A detailed review of the region’s largest-ever celebration of the SME sector - SME Beyond Borders.

Tech Trends 84 Apps to supercharge your business

Data and Decision making

Global mobile subscriptions will exceed the world population with people holding multiple accounts

Line of business will impact IT spending; the rise of the executive buyer

47% of smartphone owners would like to be able to pay electronically without an automatic transfer of personal information

According to the International Energy Agency, America will become the world’s largest producer of oil with its shale-gas revolution

The 3rd platform will fuel sector-wide technology innovation

US-based trade magazine CRN forecasts that by 2015, smaller businesses will invest nearly $100 billion in cloud computing

IDC has predicted that 1.3 billion people will work remotely using mobile technology in 2015, equivalent to 37.2 percent of the entire global workforce.

12

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Data and Decision making

Gartner predicts that the overall IT investment during the year 2015 is anticipated to grow by 3.7 per cent globally. The IT services industry is likely to witness a remarkable growth of nearly four per cent. In absolute terms, it can hit the trillion dollar mark

consumers will watch streamed video more often than broadcast TV

Open Data will begin to drive innovation in MEA Smart Cities

MEA ICT spending to cross USD 270 billion in 2015

Mobile will continue to drive innovation in 2015

India has the potential to capture approx. $300 billion in manufacturing exports by 2015

2015 will mark the halfway journey to Abu Dhabi’s 2030 Economic vision.

Telecommunication firms in MEA will transform to become IT and digital services players Big Data will remain an opportunistic buy in MEA for 2015

IaaS and SaaS will begin to disrupt traditional software and services base www.smeadvisor.com

The number of people active on Facebook will surpass China’s total population

The need for agility will drive demand for converged systems 13

GROUND LEVEL

Top 10 trends in 2015

what’s hot and what’s not?

Every year brings in new opportunities for growth, but not without its fair share of peaks and troughs. While we can’t fully predict the future, we can definitely identify trends that will impact the business environment and endeavour to prepare ourselves to maximise their benefits. In the following feature, SME Advisor assesses what the experts are saying, collates key data, predictions and facts, and gives you a comprehensive listing of ten top trends that stand to leave a lasting impression in 2015…

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1

Evolution of the traditional workplace

The ‘9am-5pm’ work days are definitely a thing of the past. With video conferencing, collaborative mobile software and cloud computing, employees have the flexibility to work from anywhere and at any time. Coworkers are able to seamlessly work together from different geographical locations, and this is just the beginning.

2015 will unveil further innovations that will completely change the way we work. A major development in the pipeline is ‘Facebook at Work’ – the

social giant’s new initiative geared at improving team collaboration and simplifying workflow (this was according to a report in Financial Times which cited anonymous sources).

Another emerging trend is that of the digital resume. Job-seekers will increasingly seek to go ‘beyond the printed page’, using alternative means to impress potential employers. Digital resumes will give instant access to real-time information, carry links to the candidate’s past or current work portfolios, allow for more visual representation (videos, pictures, career graphs) and weave a refreshing human element into traditional resumes.

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GROUND LEVEL

IDC’s top 10 ICT predictions for MEA in 2015 1. MEA ICT spending to cross USD 270 billion in 2015 2. IaaS and SaaS will begin to disrupt traditional software and services base 3. The need for agility will drive demand for converged systems 4. Open Data will begin to drive innovation in MEA Smart Cities 5. Telecommunication firms in MEA will transform to become IT and digital services players

6. Security investments will remain reactive due to 3rd platform uptake 7. The 3rd platform will fuel sectorwide technology innovation 8. Big Data will remain an opportunistic buy in MEA for 2015 9. Mobile will continue to drive innovation in 2015 10. Line of business will impact IT spending; the rise of the executive buyer

Source: www.idc.com

2

Internet of Things

There will be 26 billion devices on the Internet of Things (IoT) by the year 2020 according to the research firm Gartner. In an online article on Forbes.com, Prakash Nanduri, Cofounder and CEO, Paxata, explains, “The real opportunity for IoT in 2015 will be in Smart Patient Rooms, Smart Cities, Aging in Place technologies, innovations around supervisory control and data acquisition (SCADA), smart meter reading, and even the reinvention

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of traditional workflows. For instance, in the construction industry, workers can now get supplies brought to them instead needlessly going up/down ladders and risking injury. Imagine the insurance company who would offer discounts on premiums to the construction firm using an IoT ladder over an older model.

Not so different than a utility offering discounts for purchasing “smart” appliances. An insurance company could correlate the data coming from the ladder against claim data and against risk data.

Suddenly, the IoT data is ONLY contextual, and therefore valuable, if it can be viewed against other meaningful data coming from data warehouses.”

With such advanced technology, businesses will have the opportunity to simplify workflow processes, reduce costs and increase safety in the workplace.

3

Wearable technology

Fitness bands, smartwatches, Google Glass and the likes will become increasingly popular in 2015. One sector that stands to be completely revolutionised by this emerging trend is

the healthcare sector. Wearables will soon be used for health monitoring and reporting. For instance, doctors will be able to wear bands or Google Glass to get constant, hands-free access to patient records. This will also fuel the debate on privacy and the extent to which these devices are intrusive.

4

Women in the workplace

Quick fact!

2014 has arguably been a landmark year for women across the globe. 2015 will see further development in terms of women in the workplace. In fact, 65 per cent of GCC organisations reported that gender equality is on their strategic agenda. Another recent report, The Q3 Spark Business Barometer, also highlighted that “millennial and women business owners are seeing improved sales, and tend to be more optimistic about financial conditions and business prospects, as well as the economy, compared to other generations and male counterparts. Entrepreneurs should seek out diverse points of view from their millennial and female counterparts; a new perspective may help tackle a long-standing challenge or identify a new opportunity.”

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GROUND LEVEL

Did you know?

The Global Leadership Forecast 2014-2015 by DDI reported that in companies that came within the top 20% financial performance bracket, 37% of all leaders were women and 12% of all leaders were highpotential women.

Employment in manufacturing, 2013 India

China

9.4% 14.5% Industrial Revolution

Average manufacturing labor cost per hour, 2014

India

China

$0.92 $3.52 Data: World Bank, Euromonitor, The conference board, economist intelligence unit, Bureau of labor statistics and boston consulting group, CIA world factbook Source: Bloomberg

Average salary globally in legal sector, US$ 510 per hour.

5

India as the new manufacturing powerhouse

Manufacturing will continue to strengthen and maintain its position as one of the most prolific sectors in the world. India’s recent ‘Made in India’ campaign has shifted the manufacturing spotlight from China to India. Research suggests that India has the potential to capture approx. $300 billion in manufacturing exports by 2015.

In addition, the Asian giant stands to generate 25-30 million jobs by 2015 following such manufacturing transformation.

Comparing India’s manufacturing sector with China, the numbers paint an interesting picture. Here’s some food for thought...

6

World currencies and FX markets

A detailed report by FOREX.com explains: “The greenback has outperformed all of the major currencies and all of the emerging market currencies bar the Indian rupee (INR) and the Hong Kong dollar (HKD). Due to the divergent monetary policy paths between the Fed and other major central banks, the dollar is in a good position to continue to outperform in 2015, at least for the first half of the year. While we expect the dollar to reign supreme in Q1 2015, its performance for the second half of the year could be tricky depending on the Fed’s tolerance of dollar strength. FX markets could face another year trying to parse Fed statements to see if Fed members are happy with the level of the buck.”

7

Public-private partnerships (PPPs)

For over two decades, PPPs have been successful collaborative mechanisms, implemented across several countries

16

over the world. PPPs drive efficiency, transparency, speed and economic impact in the delivery of services and vital infrastructure. In fact, development of infrastructure is one of the key areas that PPPs can particularly help with – the success of this model in countries such as Australia and Canada is a good example.

World Economic Forum’s Global Competitiveness Report 2014-2015 further explains this: “Public-private collaborations have been common in areas such as infrastructure development because the potential gains that these specific governance structures could bring are significant for both the public and private sectors in terms of both the speed and scope of implementing projects and the particular strengths that each party can bring to bear. The private sector can contribute its management expertise and resources, and the public sector can contribute its understanding of public needs and resources. Besides the traditional public-private partnerships found in infrastructure, public-private collaborations are becoming more common in initiatives related to other drivers of competitiveness, such as in innovation and education.”

8

The power of daTa

Speaking to the World Economic Forum, Dr. Shirley Ann Jackson, President, Rensselaer Polytechnic Institute, and a Global Agenda Council alumnus, rightly remarks, “Data is the new natural resource of the 21st century.” By 2015, Gartner predicts that 4.4 million jobs will be created around big data.

85%

of Fortune 500 organisations will be unable to exploit big data for competitive advantage through 2015.

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GROUND LEVEL

Top risks in 2015

Growth of MOOCs Does not include courses announced but without a start date

• The geopolitical situation is something that will largely impact the world’s economy.

• Reducing oil prices.

1,250

Number of Courses

1,000

750

500

250

0

Jan. 12

Jul. 12

Jul. 13

Jan. 13

Jan. 14

Total Courses started

Source: https://www.edsurge.com/n/2013-12-22-moo 1

9

Ease of doing business

For entrepreneurs, start-ups and small business owners, 2015 brings further ease to operating their own businesses. “If you wanted to start a software company in 1990, you needed $20 million. In 1997, you needed $3 million. Today, you could do it for $25,000. By the end of the decade, more than 100 Fortune 500 companies will no longer be on the list, replaced by companies that don’t exist yet,” says Vivek Wadhwa, Research fellow at Stanford Law School. In fact, this is very much aligned Dubai’s Strategic Vision 2021, which highlights Dubai’s ambition to achieve the top ranking for ease of doing business. The report defines Ease of doing business as “an indicator that evaluates government procedures around business activity. It is based on ten sub-indicators: starting a business, obtaining construction permits, registering property, obtaining credit facilities, protection of investors,

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payment of taxes, cross-border trading, enforcing contracts, resolving insolvency, and obtaining electricity.”

10

Education – a new world of opportunity

Driven by technology, access to education is no longer confined by physical and cultural boundaries. You could be a seven-year old child in Peru enrolled in a ‘Security & Networking’ course on an e-learning platform or a 56-year old housewife in Chicago getting a degree in ‘Advanced Design’ through a customised distancelearning programme. The possibilities are endless.

This changing landscape is also marked by the emergence of ‘Massive open online courses (MOOCs)’ across the world. MOOCs are educational programmes conducted on the Web giving open access to anyone that is interested. These courses are usually characterised by their highly user-interactive platforms, flexible structures, low barriers to student

Quick facts about MOOCs • 40% of MOOC users come from developing countries.

• The length of a typical course is 8-10 weeks.

entry and multi-lingual study options.

A large proportion of adult and working learners are attracted by this market.

2015 will see the continuing rise of MOOCs with employees increasingly reaching out to e-learning to gain professional qualifications and get vocational and skills training.

Good luck in 2015!

For an online version, please visit: www.smeadvisor.com/2014/12/top-10trends-in-2015/

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GROUND LEVEL

Does your SME know it all?

Market intelligence and how it can supercharge your business

How do you find out who your competitors are and what they’re doing - and how do you establish a true set of USPs in line with the global benchmarks? Market intelligence can bring a breath a fresh air into your business and ensure that you are ahead of the curve.

But, is it as easy as it seems?

18

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GROUND LEVEL

Companies that are able to identify, collect and analyse information about the external market environment make better decisions. Those SMEs that use marketing information frequently are seen to be more successful than those that do not and because of their socioeconomic impact at both local and national level, nurturing the success of SMEs is frequently at the top of policy makers’ agendas.

What is market intelligence?

In its broadest sense, market intelligence is the capturing of information relevant to a specific market. In a more practical context, it is the gathering, analysis and broadcasting of information that is significant to the market segments a company participates or wishes to participate in. Market intelligence incorporates four major activities; competitor intelligence, product intelligence, market analysis and market research. It is not just about the collection of data. Market intelligence is the combination of data collection and analysis to generate the information that is relevant to making strategic decisions.

It is recognised that those companies who are making best use of information show an improved ability to develop an effective response to changes in the marketplace. Marketing intelligence enables a company to collect information about both the internal and external environment, which can then be used to improve the accuracy and precision of marketing decisions. It also helps in allowing the company to react faster to changes in the market or environment. Businesses now operate in a world in which information is more readily and publicly available than ever before and thanks to the development of the Internet, information on market trends, legislation, customers, suppliers, competitors, distributors, product development and almost every other conceivable topic is just a few clicks away. Search engines, online libraries, company websites and other sources provide information in an

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market intelligence is the capturing of information relevant to a specific market.

increasingly plentiful, easy to find, and easy to digest way and yet the types and sources of marketing information used

by SMEs are still mostly of an informal nature. What SMEs need is formalised marketing information including data on: suppliers, buyers, competitors and trends (i.e. national, global, economic, socio-cultural and technological).

The quality and reliability of the sources of information used should be instrumental to the strategic decisionmaking process. It is vital that business owners adopt a systematic, skilful way of collecting, analysing and monitoring quality information from the marketplace in order to minimise risk when planning marketing activities.

The more marketing information is used to support decision making, the greater the probability that the company will make the right choices within their competitive environment.

What does it take to deliver world-class market intelligence?

There are four key main components an SME must consider to ensure their approach to market intelligence is world-class: • Data sources and field resources • Analytical skills and processes to pull the data together

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GROUND LEVEL

In order for market data to be useful it must be merged together into information that is relevant to key decision makers and the decisions they are making.

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• Technology foundation and platforms to deliver, store, process, and distribute the information • The support of, and access to, top management Data gathering and field resources are the foundation for any market intelligence activity. This is the set of individuals, processes, and information services that provide the basic data on product shipments, competitor profiling, and other data relevant to the market. An organisation that successfully uses this data finds ways to turn the entire organisation into one large intelligence-gathering unit. Through the use of incentives, education and existing communication infrastructure such as e-mail and online discussion forums, the entire organisation including sales, purchasing, finance, and development can become a source of relevant market data. However, the gathering of such facts and figures is not enough. Without extensive analysis and discerning reporting, the data remains simply that data, it never becomes useful information. In order for market data to be useful it must be merged together into information that is relevant to key decision makers and the decisions they are making. The ultimate test of the effectiveness of market intelligence is whether it provides the right information in order to let business owners make decisions with confidence.

Identifying the way in which SMEs are likely to make best use of market information is paramount if the potential benefits of the collection and analysis of such data are to be maximised. A second issue that must be considered is the importance of marketing training as it is only through understanding existing and potential market behaviour that a company will be able to make best use of market data.

SMEs with relevant marketing knowhow can identify their information needs better and can lean towards a more structured approach to the marketing activity. However, this also carries implications for business

owners and managers who should try to invest in their own training so as to be able to improve their understanding of marketing and aid in the decision making process.

Marketing intelligence can be used to assist with more or less every decision faced by a company. The overriding purpose of most market intelligence, however, is to help the company grow and to increase revenue, profit and market share. Good market intelligence can therefore have a huge return on investment in terms of the generation of increased customer revenue or the avoidance of a bad investment or marketing decisions. But perhaps most importantly it is vital that market intelligence reaches and is valued by business decision makers; this can be a challenge for many reasons. Often this is due to the decision-makers believing that market intelligence has little value relative to their own gut instinct.

Sometimes an entrepreneur may have had past experience with poorlyexecuted market data that has had little impact on company performance and therefore has little perceived value.

If collected, analysed and presented in a bespoke fashion that is tailored to the needs of a business, market data is proven to be an invaluable tool when it comes to entering a new market as part of a strategic expansion plan or reacting profitably to changes in existing markets. Marketing intelligence gives decision makers a 360 degree view of their organisation, the market they operate in and their future direction.

While in the past, SMEs may have considered it to be an expensive activity accessible only by large corporations, in today’s rapidly changing business environment, many entrepreneurs believe market intelligence is a fundamental part of their long term success.

For an online version, please visit: www.smeadvisor.com/2014/12/doesyour-sme-know-it-all/

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GROUND LEVEL

why effective fleet management is a vital catalyst in SME success If your business depends on running and managing a small fleet of vehicles, you know only too well the costs involved and the squeeze they put on cashflow and forecasting. So the last thing you need is the additional burden of repair and replacement costs, or random expenses through poor fleet management. Senior Editor Paul Godfrey sets out some simple rules for saving money in the medium term and keeping your fleet in tip-top running order‌

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GROUND LEVEL

drivers with a clean driving licence. Carry out extensive checks when hiring drivers: what experience do they have?

Are they used to driving light commercial or HGV, and do they have the appropriate licence? Have they driven in busy metropolitan conditions before? Where possible, allocate only two drivers per vehicle, so that they are fully conversant with required driving styles.

Never let drivers take vehicles home with them at night. This may result in the vehicle being exposed to all kinds of risks that simply wouldn’t occur during the working day.

When SMEs owners and directors are mired down with the commercial side of fleet management, another - even more important - aspect is often overlooked: the fact that cars, vans and trucks are potentially lethal weapons that can endanger staff, customers and fellow residents. As such, it is imperative that they are kept in fully roadworthy condition.

There are nine simple rules to follow which will help ensure that your fleet delivers the best possible image for your company and doesn’t invite a host of serious liability claims 1.

2.

3.

Ensure that all vehicles are regularly serviced according to the manufacturer’s service requirements. Of course, this will be easier to track if all vehicles were purchased at the same time: if not, a written manual has to be kept (or on an online checklist needs to be created), logging effectively when each service is due. If the service warranty is expired, always err on the side of safety and upkeep older vehicles with a service every 10,000 km.

Conduct a regular visual inspection every week. A qualified mechanic should look at tyre pressures; lights (are they working; are glasses or lenses broken?); wiper blade effectiveness; and - of course assess the condition of brakes, including handbrake. As well as mechanical inspections, check that bodywork is not excessively dented or corroded, and does not present a hazard to the public, with sharp edges, etc.

5.

6.

Ensure that all drivers and passengers wear seat belts at all times when the vehicle is in motion. There is still no more effective way of reducing the chances of injury and loss of life.

7.

Fit a basic alarm system to every vehicle, especially if it is an expensive heavy vehicle like an excavator or tractor.

This is a quick, effective way to deter thieves. Additionally, for vehicles left out overnight, a simple steering wheel lock is a great visual deterrent and makes thieves’ lives a good deal harder.

Ensure that water, oil and brake fluid levels are correct at all times.

8.

4.

Require that all fleet vehicles are driven by only fully qualified

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Check that all locks are working.

If carrying tools or expensive items, where necessary fit either a steel safety mesh to the rear goods hatch or a lockable security gate with strong, rigid bars. Never let expensive tools or equipment be left in the vehicle overnight. Even good quality locks will be broken into if thieves have enough time and are left undisturbed.

Keep vehicles clean, ensuring good driver visibility and a reduced risk of corrosion.

Ensure that all vehicles are regularly serviced according to the manufacturer’s service requirements.

9.

Never run a vehicle, large or small, on bald tyres. Quite apart from the fact that this is illegal and can incur a sentence of tens of thousands of dirhams (or indeed can be a prisonable offence in the event of road death), it is extremely dangerous. In addition to impacting cornering, road grip and emergency stopping distances, it can also lead to a tyre shedding its tread altogether, with potentially catastrophic consequences.

Moreover, the fact that we have all seen the superhighways of the UAE littered by tread debris shows this is not a rare phenomenon…

Keeping the drivers in the loop and aware of the risks All the above will only be possible if drivers are briefed regularly on the major vehicle risks and are

23

GROUND LEVEL

It’s also vital to ensure that business vehicles are bring used for just that - business, and not the errands or odd jobs that staff might do in their spare time.

provided with a written car safety manual, a copy of which can then be kept in each and every vehicle.

A senior member of your team should brief drivers (a least every month) on the key safety aspects - as well as telling them any rash, irresponsible driving will be met with stern disciplinary action. Good drivers with a solid safety record can be rewarded by appointing them as the drivers of the newest and best vehicles and by a simple award, like ‘safety employee of the month’.

It’s also vital to ensure that business vehicles are bring used for just that - business, and not the errands or odd jobs that staff might do in their spare time. A vehicle might simply not be safe carrying heavier loads, and may not have proper secure fittings for carrying ladders, glass, piping and the like.

This opens up a world of risk that you simply won’t be insured for.

One last point on the area of driver responsibility: always insist that drivers turn off the engine and remove the key when they park the vehicles even for a few minutes.

It’s amazing how many vehicles are stolen because drivers didn’t want to turn the AC off for a couple of minutes.

Active safety - keep the fleet secure overnight The best and safest place to keep the fleet overnight (and when not on the road during the day) is well out of harm’s way in a lockable yard or gated compound. Protect the perimeter of the compound with a steel mesh fencing, conforming to safety standard DIN EN 14470 -1. This should be held in place by attachment to concrete posts every three metres (concrete is more corrosion-resistant than steel and able to survive minor parking impacts from vehicles). Fencing and gates should be two metres high, as a minimum. With a larger fleet, you can use a boom-entry system activated by a swipe card system.

24

This can have the added advantage of allowing you to log and monitor vehicle movements and use.

The fleet compound should also be lit at night, if open. This is a huge deterrent to would-be thieves and needn’t involve high cost. Four or five overhead lights conforming to safety standard DIN VDE 0108 - 100 can provide near-daylight conditions.

If you have expensive heavy duty vehicles, it can be worth investing in keeping the compound manned with a security guard 24/7 - many companies can provide this service to you on an outsourced basis for relatively little cost.

Keeping insurance costs low It’s not only your own business that will benefit once you put these various measures in place - it’s your insurer as well, who will be far less likely to have to payout expensive claims. In fact, these measures can all be classified as important ‘risk management’ strategies. Which together ensure that your security is handled in a proactive way (as

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GROUND LEVEL

contrasted to insurance as such, which effectively locks the door once the horse has bolted!). This fact will not be lost on your insurer, who may charge you a premium up to four times lower than that levied in a riskier setting. In fact, a good strategy is always to tell your insurer that you plan to implement a number of these key measures, and then find out in advance how you will be rewarded with a lower quote. You can also also ask the insurer to carry out a simple risk management audit and set an upper limit to your risk management budget, in return for which you will be merit a lower premium. Work with the insurer in this way just once or twice, and you will become far more expert in identifying future risks yourself and dealing with them accordingly.

Allow your business to compete on a Best Practice platform, adding one more competitive advantage that your competitors don’t have.

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A stitch in time Ask every driver to contribute to a central accident log, which clearly records any incidents, and when and where they happened. Ensure that after each incident, action is taken in one of two ways • An insurance claim is made in a timely way and the damage repaired professionally asap • Any damage not involving a third party and caused by parking, loading, etc. is also dealt with promptly This will ensure that the condition of vehicles does not deteriorate following an incident, and that the overall resale/exchange value of the fleet remains at an optimum level for as long as possible.

On this same commercial note, it’s worth pointing out that a properlymanaged and maintained fleet will need replacing considerably less often than one that’s heavily-worn and abused - thereby reducing a classic (and often dreaded) outlay and allowing money to be spent across other vital areas of the organisation.

One more factor here, too: most insurers will say that by far the highest volume of claims come from one simple source: driver error.

Yet while it would, therefore, make plain good sense to reduce the chances of driver error, very few businesses actually invest in driver training - and even less on driver ‘refresher’ courses. Make sure your business is the exception to the rule.

Driver training can • Lift the overall standard of driver performance across the business, and ensure that the ‘good example’ of top drivers rubs off • Prepare drivers for adverse conditions and let them know the operating limits of their vehicles • Allow your business to compete on a Best Practice platform, adding one more competitive advantage that your competitors don’t have • Save medium-term costs and dramatically reduce the likelihood of injury to staff, pedestrians and other road users.

Drivers can then have shorter, ‘topup’ courses every two to three years, ensuring that good, safe driving is habitually engrained and part of the inherent culture of your business.

For an online version, please visit: www.smeadvisor.com/2014/12/the-wordon-the-street/

25

2014-THE YEAR IN PICTURES

Key themes in 2014 – Review in pictures As we start the New Year, it’s time to reflect upon key themes that shaped the SME sector in 2014. In the following pictorial review, we highlight the crucial landmarks throughout the year that helped businesses achieve effective growth. Join us in bidding adieu to this fantastic year and welcoming a brand new era of sparkling opportunities…

CUSTOMER SERVICE

We had an exclusive chat with Ron Kaufman (February) 26

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2014-THE YEAR IN PICTURES

TRADE

Global Trade Development Week took place in Dubai (October)

Our exclusive feature on Trade Finance & Cash Management (November)

ÂŁ

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27

2014-THE YEAR IN PICTURES

TECHNOLOGY

Did you attend our Get Connected event? (April)

The mega GITEX Technology Week proved to be the ideal ICT platform (October)

28

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2014-THE YEAR IN PICTURES

FINANCE

Our Getting Business Finance event was a major success (June)

DATA AND DECISION MAKING

DATA AND DECISION MAKING

C F O - T O D A Y ’ S

L E A D E R 61%

are partnering effectively with other enterprise functions

79%

w ith

60%

are providing insightful analytics to the company

2/3

of CFOs agree that their financial expertise enables them to be more in demand for board-level roles

ip

h rs

pa rt ne

ne rt

rs hip

pa

agree that the CFO has to act increasingly as the face of company performance

: ith

CF O

w

Strategic planning?

PREDICTIONS FOR THE FUTURE

:

of CFOs say increased global political instability is their top risk

73%

are lowering costs and increasing productivity

35%

of CFOs in the Middle East and Africa are confident about credit availability

61%

will look at investing in analytics, planning, budgeting and forecasting

28%

see slower growth in emerging markets as a key economic risk

44%

say upgrading the skills of the finance staff is a key focus

:

CF

ith

O

w

pa

hip

rt

rs

ne

ne

rs

rt

hip

pa

w

O

ith

CF

24% CPO

29%

Profits?

CSO

73%

see lowering costs & increasing productivity as a priority

:

CIO

O CF

39%

25%

Innovation?

COO

S I N E S S

THE ROLE OF THE CFO

THE CFO THE C-SU I TE THIN WI

46%

B U

20%

Risk?

CHRO

PROMINENT CFOs CFOs ranked as the top four in The Wall Street Journal’s Best CFOs list

Leading CFOs in the Middle East

COLLABORATIVE INFLUENCE CEO 78% CFO 65% Others 24%

Most influential after the CEO

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Carol Tomé, Home Depot

Karen Hoguet, Macy’s

Stacy Smith, Intel

Paul Clancy, Biogen Idec

Adel Al Wahedi, Abu Dhabi Ports Company

Khaled El Chidiac Majid Al Futtaim Ventures

We released The Role of CFOs infographic (September)

29

2014-THE YEAR IN PICTURES

BUSINESS START-UP

Brilliant discussion points were brought forward at the Getting Started event (May)

Spotlight on the prestigious Khalifa Fund (August)

30

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2014-THE YEAR IN PICTURES

MANUFACTURING

NBAD’s SMEs in Manufacturing roundtable event (November)

SME MANUFACTURING

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Launch of the SMEs in Manufacturing report (December)

31

2014-THE YEAR IN PICTURES

GROWTH

A landmark event – Empowering Growth, Extending Reach (May)

SMEs took home valuable lessons from the Roadmap for Growth (August)

32

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FINANCE & GROWTH

The Dubai Economic Council weighs in on M&A Growth

DEC Senior Economist Ali Tawfik Al Sadik offers his expertise on how Mergers & Acquisitions (M&A) are shaping up in the UAE due to connectivity between global trends, FDI and the partnerships they encourage.

I am a macro economist and believe offering a global view helps to better understand the M&A market.

Global FDI inflows peaked in 2007 reaching more than two trillion dollars, of which 22 per cent represented cross border M&As whilst the balance represented greenfield projects. In terms of numbers, there were 12,199 cross border transactions and 12,974 greenfield projects in 2007. The 2007 – 2008 global financial and economic crises negatively impacted the global and regional FDI flows tremendously. In fact, FDI inflows dipped to 1.3 trillion dollars in 2009, and by 2013 they recovered partially to $1.4 trillion. Global M&A transactions reached 8,634, valued at $780 billion and the number of greenfield projects amounted to 14,215, valued at more than $672 billion in 2013.

34

Greenfield projects in the manufacturing sector accounted for 38.5 per cent and services for 57.2 per cent and the balance went to the primary sector in 2013.

FDI inflows, especially the Greenfield projects, are important to the receiving country since they create value added, jobs, and increased exports, also adding to the stock of wealth, deepen globalisation, create competition and facilitate technology transfer. In 2013, value added by foreign affiliates amounted to $7.5 trillion, equivalent to a little more than 10 per cent of world gross domestic product (GDP), employed more than 70 million persons, and exported more than US $7.7 trillion, equivalent to a little more than 33 per cent of world exports.

In general, FDI has direct and indirect effects on an economy. The direct effect is reflected in higher growth rates which are

generated by higher capital formation.

The indirect effect emanates from the efficiency gains that are associated with technology transfer and competition that FDI generates.

Economic determinants often divide FDI into two broad categories: • Market seeking FDI, which is tariff jumping investment driven by larger markets or regional trading areas, • Efficiency seeking FDI, which can take the form of export platform investment in final goods and investment in internationally integrated industries For the UAE, FDI inflows peaked at US $14.2 billion in 2007, and plunged to US $4 billion in 2009. However, the FDI inflows recovered to almost US $10.5 billion in 2013. The value of cross border M&As in the UAE peaked at US $1.3 billion in 2008 and dipped to only

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FINANCE & GROWTH

UNITED ARAB EMIRATES (million of dollars) united arab emirates (outflows)

united arab emirates (inflows)

18,000.0

15,820.3

16,000.0 14,000.0 12,000.0

10,488.0

10,003.5

10,000.0 8,000.0 6,000.0

3,750.3

2,905.2

4,000.0 1,183.8

2,000.0

2013

2011

2012

2010

2009

2007

2008

2005

2006

2003

2004

2001

2002

1999

2000

1997

1998

1995

1996

1993

1994

1991

1992

1990

-2,000.0

UNITED ARAB EMIRATES: Value of greenfield fdi projects (million of dollars)

40,000 36,218

35,000 30,000 25,000 20,000 15,327

15,000

US $299 million in 2009 and recovered partially in 2010, after which it declined to US $286 million in 2013.

The value of UAE greenfield projects peaked at US $36.2 billion in 2008, followed by a declining path and reached US $6.8 billion in 2013.

In the United States of America, the Committee on Foreign Investment in the US (CFIUS), is a multiagency government body chaired by the Secretary of the Treasury. The Committee reviews proposed M&As and greenfield projects and presents recommendations to the President who has authority to accept or reject the proposed transaction.

This is a standard the UAE is drawing nearer to exemplifying as well.

10,000

8,951

13,067

12,372

10,388

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12,053

11,623

6,821

5,000

3,613

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

at the global level (billion us $)

FDI INFLOWS

CROSS-BORDER M&A

M&A % OF FDI

1700 1493

1452 1330

780 556 332

For an online version, please visit: www.smeadvisor.com/2014/12/dec-onma-growth/

12,870

52.2

2005 - 2007 pre crisis average

32.7

2011

349

25.0

2012

24.0

2013

35

Seal the deal:

Mergers & Acquisitions

FINANCE & GROWTH

Sources: Bridging the Gap: M&A by Deloitte; EY’s Capital Confidence Barometer – Smaller strategic deals lead market recovery; Going Global – strategy and execution in cross-border M&A by Baker & McKenzie

36

MERGERS & ACQUISITIONS in the Middle East Overall outlook

57%

79%

expect to pursue acquisitions in the next 12 months

34%

expect their deal pipeline to increase over the next 12 months

plan to make further acquisitions within the next two years

Top trends Major deal: acquisition of the Qatar-based Barwa Bank

by Qatari Diar Real Estate Investment Company for $0.7bn

The top 5 transactions made up 85.3% of the total M&A value in the region during Q1 2014

Middle East and North Africa M&A deal values increased from $31.6 billion in 2011 to $44.8 billion in 2012

The UAE and Qatar lead regional deal activity

This marks a 42 per cent jump

Sectors with highest intentions to pursue acquisitions

Construction

Consumer products and retail

Diversified industrial products

Telecommunications

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FINANCE & GROWTH

Cross-border MERGERS & ACQUISITIONS Understanding cross-border M&A

86%

34%

consider their last cross-border M&A deal to be successful

$263.1BN

plan to undertake another cross-border deal in the next 2 years

value of crossborder deals for Q1 2014

Key drivers

34%

Access to customers

25%

21%

Intellectual property

12%

Industrial assets

8%

Natural resources

Human capital

Why choose M&A over joint ventures?

33%

Risk of conflict around decision making and control

15%

19%

Desire for full ownership of assets and profits

13%

Lack of suitable joint venture partners

Unsuitable legal environment for enforcing joint ventures

What are the CFOs saying?

Core M&A objectives

64%

Product/service differentiation

42%

Enter new geographic markets

42%

32%

Expand customer base in existing geographic markets

Pursue cost synergies or scale efficiencies

What are the primary M&A funding sources?

53%

Available cash

37%

6%

Debt

New equity issuance

Greatest concerns

43%

Failure to effectively integrate

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16%

Changing regulatory and legislative environment

14%

Inaccurate target valuation

12%

Economic uncertainty

37

MOVERS & SHAKERS

An exclusive chat with Laura Schwartz

WHEN LAURA SCHWARTZ WAS OFFERED A VOLUNTEER POSITION AT THE PRESTIGIOUS WHITE HOUSE IN 1993, SHE HAD NO POLITICAL CONNECTIONS, EXPERIENCE OR BACKGROUND. WHAT SHE DID HAVE, HOWEVER, WAS DETERMINATION TO SUCCEED, A ‘NEVER-GIVE-UP’ ATTITUDE AND AN UNDYING PASSION FOR HER JOB – QUALITIES THAT OPENED DOORS FOR HER AT EVERY STEP OF HER CAREER. IN A CANDID CHAT WITH RUSHIKA BHATIA, LAURA SHARES HER INSPIRATIONAL STORY, SECRETS TO SUCCESS AND HOW SHE MOTIVATES PEOPLE TO EAT, DRINK & SUCCEED…

Laura Schwartz

38

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MOVERS & SHAKERS

you have to realise that no task is beneath you – whether it’s picking up phone calls, meeting clients or making appearances, it’s all part of the business.

As former White House Director of Events, bestselling author, motivational speaker and business owner, Laura wears several hats.

How does she juggle them all and what has been her biggest challenge to date? “Although every aspect of my work life involves doing different things, the common denominator is making an impact on the lives of others and sharing my knowledge and experiences with the people around me. I constantly remind myself that this is my primary goal and it makes doing everything so much easier,” shares Laura.

She adds, “I think the biggest challenge definitely is being an entrepreneur and running your own business. It’s a 24/7 job – you have to take charge of everything from A to Z. Most importantly, you have to realise that no task is beneath you – whether it’s picking up phone calls, meeting clients or making appearances, it’s all part of the business.” Laura embraced such work ethic very early in her life, coming from a family running a small business.

“My parents ran a family business in my hometown Wisconsin. So, from the very onset, I was always exposed to entrepreneurship, working independently, making decisions and managing processes from end-to-end.”

The White House years How did a teenager from Wisconsin make it to an executive management position in arguably the most powerful executive office in the world? “When I was studying in Wisconsin, I never imagined – or planned – to work in the White House. It so happened that I moved to Washington for a semester programme. During my stay, I came across a volunteer position at President Clinton’s press office in the White House, which involved answering phone calls, making coffee and photocopying. It was

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nothing glamourous or exciting, just basic duties.”

“After a few weeks of working there, I found myself wanting to learn more about how things were done and I started looking for ways to increase my contribution within the team. I would sit and make notes when important board meetings took place, send out follow-up e-mails on behalf of senior staff members, write press releases and so on. I wanted to stand out from the five other volunteers working alongside me. It wasn’t too long before I was offered a permanent position as a receptionist.

But, accepting that offer meant that I wouldn’t be able to interact with senior staff members the way I did or move around and learn new things.

So, I decided to decline the offer and continue as a volunteer.

“When I declined the offer, my boss approached me and asked me what I was looking for in a position.

Following a very honest chat, my boss offered me a staff assistant’s positions and I instantly took it up.

That’s really how my journey began within the White House. I slowly climbed up the ladder to become Director of Events. At every step of the way, there were of course several challenges, but those came with immense opportunities. I never hesitated to voice my opinions and made sure that I was giving it my all.”

What was the biggest challenge that she faced at that time? “I remember thinking at that time that I had no political experience.

It was really hard identifying who’s who in the White House. I borrowed the phone book from the office and used it to memorise the names of everyone in the office. I didn’t want to make any mistakes because at a world-stage, there is absolutely no room for error. It was a turning point.”

As a young twenty-something, what were some important lessons that this experience gave you?

“Being a volunteer, and eventually a

39

MOVERS & SHAKERS

if you want to climb the professional ladder, you have to understand the power of social networking.

permanent staff member, paved the way for my career. In that fast-paced environment, I learnt that is was imperative to continuously develop, grow and innovate – something that I still adhere by, as an entrepreneur.”

“More importantly, I realised that if you want to climb the professional ladder, you have to understand the power of social networking. And, this is what inspired me to write my book – Eat, Drink and Succeed.”

The power of social networking At the age 19, Laura started her career by answering phone calls at President Clinton’s press office. In a few years, she was producing over 1000 events as the White House Director of Events. Laura credits a large part of this growth to networking. “Most people underestimate the power of networking – meeting and interacting with new people is at the very core of career growth and development.

Being able to make connections with influential people – the who’s who of the political circles. This, of course, applies to any industry sector that you work in. You need to create a powerful social network in which you can meet new people.”

40

“The fine line between business meetings and leisure gatherings has long been erased. For instance, even a state dinner at the White House is in fact a glamorised business meeting, where you could easily close a deal. A great example of this was Steven Spielberg who came up with his brilliant DreamWorks idea at a White House state dinner.

“And, this isn’t just true for people in the higher echelons of society, this is applicable for anyone!”

In her bestselling book, Laura explains: “The ability to pull off a networking power play in under three minutes rests on various powers that you need to practice, plan and rehearse. Whether it’s a business lunch, annual conference, birthday party or black-tie gala, you have the power to make every event beneficial and the power to make yourself remembered.”

Enjoy this excerpt from Laura’s book!

Effectively tap into your social scenes

In four easy steps, you can tap into your current and future social scenes to reach your goals: 1. Recognise your current social scenes.

2. Look for new opportunities to expand your social and professional reach.

3. Start to actively build bridges for others to meet their goals.

4. Identify the people and bridges that could help you achieve your goals.

The next level – Being an entrepreneur Laura went from being the youngest female presidential staff appointee to starting her own business. What was the transition like? “One of my biggest challenges was translating my terrific experience at The White House into meaningful, practical content for the corporate sector, aspiring entrepreneurs, young students or anyone else looking to make a difference. This made me extremely nervous. But, at the same time, I was also excited because it meant I was turning my passion into my profession.”

As a professional speaker, Laura delivers powerful keynotes; sharing real life experiences, motivational thoughts, historical anecdotes and key techniques from her best-seller Eat, Drink and Succeed.

– relationships, credibility and mentorship. Building powerful relationships through networking will help you at every step of the way. Also, having a mentor, someone you look up to, is so very critical. Mentors can be someone you really admire – it doesn’t necessarily have to be someone that is 10 years senior to you, it could very well be someone the same age as you but doing something truly exceptional. Finally, make sure that when you do have an opinion, you aren’t be afraid to voice it, and back it up with credible sources. Making yourself heard is so important!”

Parting words What advice would Laura give to aspiring entrepreneurs in the region? “I would like to highlight three major factors to bear in mind

For an online version, please visit: www.smeadvisor.com/2014/12/anexclusive-chat-with-laura-schwartz/

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SME BEYOND BORDERS

An experience beyond borders

On November 30 - December 1, the spectacular setting of the Madinat Arena saw the region’s largest-ever celebration of the SME sector - SME Beyond Borders. In the following pages, we highlight the keynotes of its extraordinary speaker programme, assess the issues and debates and honour the highly valued contribution of major sponsors, including Presenting Partner, National Bank of Abu Dhabi.

Presentations included keynote address from HE Hani R. Al Hamli, Secretary General, Dubai Economic Council Alex Thursby, Group CEO, NBAD, gave exclusive unpublished insights into the formation of the West-East corridor 11 international speakers, including representatives of five leading SME banks Keynote presentation on women’s empowerment from HE Dr. Maryam Matar

42

It’s not simply that SME Beyond Borders attracted more than 850 delegates on Day One, or featured an extraordinary wealth of digital effects complementing an elevated stage and backdrop 38 metres long. Or that leading speakers came from around the world to present previously unpublished data from finance houses and banks that in some cases had more than 900,000 SMEs as clients.

Rather, the event stands out as the paramount SME forum of the year because it was the first of its kind to discuss the economic trends relating to SMEs at a global level, and the first to assess the growing influence and opportunities of the ‘West-East Corridor’ - the network of emerging nations representing a supercharged, interlinked trade matrix extending from West Africa to Indonesia.

Nine months in preparation, the event grew from seeds planted by statistics such as -

SME BEyond Borders attracted over 850 delegates

HE Hani Al Hamli, Secretary General, Dubai Economic Council

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Presenting Partner

Strategic SME Partner

SME BEYOND BORDERS

Over 100 companies from emerging markets will make up the Fortune 500 list in the next five years - and the majority are now ‘tipping over’ the enterprise-level threshold.

An engaging head-to-head discussion with HE Abdulla Al Otaiba, Senior Managing Director and Group Head of Retail and Commercial Gulf, NBAD

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Emerging markets already account for more than half of global GDP - and SMEs are their primary agents of change The West still has to tackle its debt and productivity issues, with powerful negative effects on SMEs at the heart of economic diversification Over 100 companies from emerging markets will make up the Fortune 500 list in the next five years - and the majority are now ‘tipping over’ the enterpriselevel threshold The compound annual growth rate of companies in emerging markets is 30.7 per cent More and more emerging market banks are gaining ground, driven by better capital and funding 73 per cent of the world’s mega cities (cities with more than 10 million inhabitants) are in the West-East Corridor The GCC is extraordinarily wellplaced to benefit from this global economic shift 43

Presenting Partner

Strategic SME Partner

SME BEYOND BORDERS

Our society has been through the Industrial Age, the Information Age, and the Age of Connectivity - and we now find ourselves in a climate where the role of the SME is king.

Across all these trends, one fact is paramount: the powerhouse of the West-East corridor is the SME. SMEs are at the heart of all initiatives to diversify economies previously reliant on fossil fuels, and provide the varied mix of economic interests so vital for building an effective business infrastructure.

SME Beyond Borders assessed to what extent regional SMEs will benefit from the West-East corridor, how they are impacted by the current winds of economic change and how the traditional business dynamics such as attracting funding, achieving growth and acquiring profitable customers - can be tackled and addressed in ways commensurate with current market openings and expectations.

The Age of the SME Part of the event’s powerful marketing collaterals claimed that today is ‘the Age of the SME’. Our society has been through the Industrial Age, the Information Age, and the Age of Connectivity - and we now find ourselves in a climate where the role of the SME is king. It’s quite simply the only business vehicle able to deliver volatile performance, be quick, agile and nimble in the face of changing market demands, and offer exceptional levels of innovation within a quick window of development. The SME is also an omni-present element in economic ambition and reform across the globe - and all these features were highlighted in the opening keynote presentation from HE Hani Al Hamli, Secretary General, Dubai Economic Council. He commented that: “SMEs today represent the backbone of any economy in the world, whether advanced, emerging or developing. They are also one of the most important

44

pillars of economic and social development. That is due to their role in production, job creation - and therefore reduced unemployment, increased exports, and bringing on board new technology. Not to mention, too, their role in youth and women’s empowerment, and improving living standards for productive citizens. Of course, SMEs are also associated with leadership and innovation.

“According to international reports, SMEs account for high percentages of total employment in Western Europe, Japan and the United States, where their contribution to the GDP has reached 65 per cent in Japan, 50 per cent in Germany and 45 per cent in the United States. Also it is noteworthy in this context that the industrial development of Japan has been built mainly on SMEs, not on the large companies ruling the world today.

“The same phenomenon is seen in emerging economies. In China, for example, SMEs contribute nearly 60 per cent of the domestic industrial production, and account for nearly 75 per cent of the labour force in the country. This is especially interesting in light of the significant support that these entities receive from the government. It is the same in other emerging markets such as India, Hong Kong and South Korea.

SMEs have made a quantum leap on the economic and social levels in these countries and this has led to an increased interest and commitment, leading to the formation of dedicated ministries to take care of and support the SME sector.”

A fitting opening to an event that then featured a first session dedicated to the theme ‘SMEs in the global economy - and why there is no level playing field’. This addressed issues such as:

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Roberto Mancone, Managing Director, Head of Global Business Products, Deutsche Bank

Mohamad Mourad, Managing Director, Google MENA

• The role of international competitive strategy for SMEs • Online innovation and its role in marketing across the West-East corridor • Whether the West-East corridor would contribute to a ‘ghetto’ mentality, creating a second tier away from the world’s primary markets A powerful paper from Mohamad Mourad, Managing Director, Google MENA, argued cogently that online capability had already proven to be a formidable catalyst in empowering SMEs to reach fresh markets and encourage an international worldview - the days of the ‘ma and pa’ corner-shop SME were already numbered, as businesses found the online tools with which to excel on a heavily international playing field.

This was being reflected, for example, in the choice of banking products that world SME-leader Deutsche Bank was now developing and promoting to a customer base in excess of 500,000 SMEs. SME Beyond Borders was privileged to

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hear the views of Roberto Mancone, Managing Director, Head of Global Business Products, Deutsche Bank - and a figure widely acknowledged as a world-leading authority on SME economics. He explained how products were increasingly being packaged in an ‘Aggregation’ model, whereby further value-added services could be promoted as part of a oneon-one meeting with a bank client relationship manager. Reflecting a sales template first developed in the bancassurance sector, these products were targeted on key needs like cashflow, international trade finance and specialist loans for which there were clear eligibility criteria, with online ‘points scoring’ and fast-track processing and delivery of successful applications.

A panel session also contended whether or not the West-East corridor was: Actually a working reality for SMEs, or largely a hypothetical construct?

Aligned with global standards and practices, or lagging behind in key areas such as quality benchmarking and corporate governance?

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Changes in technology also impact the way that an SME can relate to its markets, assess its performance and understand its customers.

The panel included some of the most influential and well-known figures in the SME space Naaz Noor, Director - Strategy Planning and Fiduciary Services, Aseel Consultancy Alexandar Williams, Director of Strategy and Policy Division, Dubai SME Danish Farhan, CEO, Xische & Co. Aman Merchant, Founder, Impact Hub Kim Tran, Head of Global Transaction Banking Sales - Commercial Banking Gulf, NBAD Capturing the true spirit of a strong panel discussion, the comments took a surprising turn, with Danish Farhan in particular arguing that many of these issues relating to the West-East corridor were academic to SMEs, who - especially in their early growth stages - were inevitably more concerned with factors such as raising finance, and that there were strong limitations to the financial opportunities on offer. Kim Tran contended that there was only so much that banks and financial institutions could do, and indeed, there was a well-established raft of trade finance options in place for SMEs looking to expand overseas. Alexandar Williams emphasised that the Singaporean model was so strong for SMEs because of the immense amount of government initiatives (for which the Singaporean SME scene has become world famous), which to some extent took the onus away from the banks as a hoped-for ‘sole provider’. Meanwhile, Aman Merchant described how a key part of the incubation process was the ‘coaching’ of start-ups on how to be to be betterplaced to avail themselves of finance opportunities.

Yet there was another surprising turn here, too: most of the panel took the view that the region’s SMEs were in reality on a par with those found

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anywhere in the world and that the issues and challenges they faced were near-universal, not the result of local conditioning or constraints.

Navigating the winds of change Undoubtedly, one of the biggestname speakers of the day was fielded

by Etisalat: Salvador Anglada, Chief Business Officer, explained how the role of connectivity was helping businesses anticipate and react to global trends, and was indeed one of the primary enablers of the economic prowess of emerging markets. Tackling both the macro and micro economic issues, he looked at how the GCC has a very strong opportunity to emerge as a paramount economic power in the years to come, and how the West-East corridor was already seeing the shift away from China to areas with lower cost structures and significantly advanced forward planning and flexible trading policies.

Changes in technology also impact the way that an SME can relate to its markets, assess its performance and understand its customers - and noone is better-qualified to assess these elements than Arjan Oude Kotte, Director Small and Medium Business, Microsoft Middle East and Africa.

These aspects are also the keys to gathering effective market intelligence and allowing true commercial fluency across the West-East corridor itself. In a presentation rich in data, Arjan showed that markets can behave in surprising ways, and that with the forthcoming world of the ‘internet of things’, SMEs will be able to nimbly adopt fresh strategies, leaving once proven markets behind as better opportunities and new geographical entities emerge.

If ever proof of this hypothesis were needed, it came in the shape of an exceptional presentation from Markus Massi, Partner and Managing Director, the Boston Consulting Group, assessing not simply the ebb and flow of market

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forces, but evaluating how directly (or not) these are felt especially strongly by SMEs. There is no doubt that globally, emerging markets are making more and more sense for investors - anyone expecting similar index growth in the developed markets will be waiting a very long time indeed. Moreover, it is the burgeoning and vibrant growth of SMEs in those emerging markets that is in large part fuelling their success and overturning the established champion economies.

In a fascinating head-to-head session with event Moderator, Paul Godfrey, Yogesh Mehta, Managing Director, Petrochem Middle East, echoed this view, and looked at how fragile the current economic picture in the GCC could be if Iran were to return to a full trading role in the wake of loosening sanctions. What’s more, he considered how other nations in the West-East corridor - especially fellow oil producers - could apply pressure to keep the oil price low, which would have a severe impact on regional SMEs outside Kuwait, UAE and KSA. He also took the view that many SMEs faced something of a brick wall in that their growth was limited by just how well they could work as suppliers to MNCs and bigger, enterprise-level businesses - who might otherwise be seen as providing steppingstones to higher revenues and a broader commercial remit.

The change-agents: shifting global trends, the role of the customer and women’s empowerment SME Beyond Borders was honoured to hear the views of the two of the most senior banking executives in the region - Alex Thursby, Group CEO, NBAD, and HE Abdulla Al Otaiba, Senior Managing Director and Group Head of Retail and Commercial Gulf, NBAD. Two financial VIPs well-placed to comment on the role of the West-East corridor as a primary influencer on the economic background

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set to influence SME performance.

Indeed, Alex Thursby is well-known to be one of the seminal figures behind the evolving concept of the West-East corridor, and is no stranger to the world’s primary economic forums.

His paper addressed a variety of key factors seldom discussed in the context of SME economics, namely The often-overlooked importance of trends that require a broadening base for SMEs to complement and work in the supply chains of MNCs The need to build interdependent clusters, in competition and collaboration, with innovation as the goal Growing high value businesses for export markets The fact that competitiveness means succeeding in the global economy You may not be international, but may nonetheless be working in the global supply chain of an MNC The reality is that as an SME, you may have only domestic customers, but you could be sourcing anywhere in the world, so you have a global commercial challenge Internationally, the reality is that SMEs are raising their game to meet the needs of global markets

There is no doubt that globally, emerging markets are making more and more sense for investors - anyone expecting similar index growth in the developed markets will be waiting a very long time indeed.

There are key challenges and caveats attached to these propositions, however, including The reality that failure is not necessarily due to the lack of good idea/product, but rather, the lack of know-how to run a business SMEs need to have fluent awareness of the whole business management spectrum: book keeping - cash flow - HR - ICT - marketing - export know-how Moreover, even the top opportunities come with vexing questions - and it was answering these that formed the essence of the head-to-head session 47

Presenting Partner

Strategic SME Partner

SME BEYOND BORDERS

While the macroeconomic picture is becoming increasingly clear, none of this will benefit SMEs unless they translate opportunity into customer liaison and sales.

that Moderator Paul Godfrey led with HE Abdulla Al Otaiba. For example In these days of global connectivity, is it a good idea for a business based in the GCC to source finance from a lender in, eg, New York or Singapore, if they are prepared to lend?

Will the trends in SME finance that we see today in Hong Kong or California will be common here in the UAE tomorrow?

Are the nations in the West-East corridor more logical trading partners and expansion markets than those in the first world - or does this condemn local business to the poorer end of a two-tier model?

The answers are that while in principle it may seem feasible to go overseas for finance, in reality it simply won’t happen. The overseas lender has little or no knowledge of local context or markets, and won’t have the confidence to lend against such an unknown proposition. It’s very likely, though, that the trends now taking shape in advanced SME climates like California will at some stage take root in the GCC, but this ‘takes two’ - it needs buy-in from the SME to do things in the ordered and financially-audited and astute way that characterises top-level SME behaviour in the world’s primary markets. There is also the factor, though, that topperformers in the West-East corridor are at the same level (and perhaps in some ways ahead) of SMEs elsewhere in the world, and rather than see the WestEast grouping as a ‘division’, it is simply a geographical description of where the economic trends are the strongest.

While the macroeconomic picture is becoming increasingly clear, none of this will benefit SMEs unless they translate opportunity into customer liaison and sales. SME Beyond Borders heard the views of international figures pioneering changes in the way their financial houses both enable SMEs to liaise with their

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The event provided a fantastic networking opportunity

customers more effectively, and indeed, are developing their own fresh and vibrant customer strategies.

So, for example, Peter Linzenbold, Executive Director, Small Business Banking, Raiffeissen Bank International, explained how - with a customer base of more than 900,000 SMEs - an approach had been developed whereby a financial ‘diagnostic’ was applied to the SME, which could then lead to a loans application, trade finance initiative, and so on. These were all delivered in a way reminiscent of retail consumer banking, and while giving the finance opportunities customers required, were safeguarded by clear eligibility gateways. Similarly, Darina Kollarova, Head of Group Business Development, Erste Bank, looked at readily-available finance initiatives directed at her SME customer base in eastern Europe, where an emphasis was placed on a one-to-one meeting with a client relationship manager, in a friendly and informal setting, rather than in

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SME BEYOND BORDERS

a traditional (and potentially stern) banking environment.

Unicredit is one of the world’s largest banking providers to SMEs, and Roberto Parafioriti, Head of Small Business Italy - Marketing and Sales Department, explained how the diverse and hugely complex SME community in Italy is demographically coded and clientmanaged according to factors such as aspirations, turnover, number of staff, location, and so on. This has enabled Unicredit to make profound inroads in terms of effective relationship marketing and up-selling, while giving SMEs speedy, highly-organised access to the financial instruments they need.

These issues around customer service formed the core of perhaps the most compelling panel session of the event, bringing together figures with highly diverse customer service challenges and experiences. For instance, while Mohamad Alwadiya, CEO, Harbor Real Estate, has to deliver exceptional service to multiple customers under strong

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pressure oif timeframes and urgency, for lawyer Cynthia Trench, Principal, Trench & Associates, client trust is built over many months and will rely on a successful outcome that can have lifechanging consequences. Meanwhile, for Founder and Co-CEO of Kcal, Andreas Borgmann, the timeframe to build trust and influence customer choice is a mere few seconds - opposite again from the paradigm followed by Salma Sakhnini, CEO Icon Investment Consulting, where a bespoke approach is the only way to build a loyal following in a notoriously fickle sector.

Combining this vast and varied experience, the panel agreed on four key client service principles Understand what the client wants - not superimpose your own expectations Add something special to the mix; if your aim is quality, remember, not many people are used to receiving quality service as the norm and this will make you stand out from the crowd Refine your brand and service proposition so that not only is your customer crystal clear about what you offer - you are too!

First impressions count: align all your team to delivering first-class service first time round

These issues around customer service formed the core of perhaps the most compelling panel session of the event, bringing together figures with highly diverse customer service challenges and experiences.

The SME and the age of women’s empowerment Event MC - and CPI Media Group’s COO - Gina O’Hara, led a fascinating and powerful element of the agenda, presenting multiple views on the role of women’s empowerment in business.

SME Beyond Borders was honoured to welcome the keynote speaker of this session, the leading geneticist HE Dr. Maryam Matar, Chairman, UAE GDA. She explained her work amongst female Emirati communities, helping eradicate the factors leading to genetic triggers and building ongoing and 49

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The resonant and high-level dialogue established by SME Beyond Borders took the current SME agenda to a fresh level.

enlightened commitment to wellness, even amongst the most isolated demographic clusters and ethnic tribal groups.

Yet what, in a commercial context, is the experience of women owners, directors and employees of SMEs? Gina O’Hara moderated a power panel session featuring Rushika Bhatia, Deputy Editor, SME Advisor magazine Noor Sweid, entrepreneur, angel investor and IPO consultant Lynn Al Khatib, Internal Comm. and Media Relations Manager, Nestle Middle East Ambareen Musa, Founder and CEO, Souqalmal.com Randa Al Hemeiri, Ambassdor and Founder, Achieve Magazine Prof. Valerie Lindsay, Dean of the Faculty of Business, University of Wollongong Dubai.

There was a consensus that one of the key ‘mysteries’ of female empowerment is the fact that actually, women in the UAE do indeed have a good deal of involvement (at every level) in the workplace and in society at large, yet still feel that there are alarming gaps in the larger comprehension of their equality and empowerment - often enforced by family expectations and traditional lifestyle choices. Women are also tending to act as if they do not have power, when the reality is that potentially they have it in abundance: why the contradiction? What’s more,

Presenting Partner

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Strategic SME Partner

Trade Credit Partner

Official Government Partner

Trade Facilitator Partner

Event Partner

Gold Sponsors

Port Authority Partner

Event Partner

Silver Sponsors

SME Support Partner

Official Broadcast Partner

Supporting Partner

Institutional Partners

there is no escaping the fact that playing a lead role in an SME while combining the larger realities of motherhood is challenging indeed - yet this in itself can lead to a greater sense of 360-degree capability and develop tangible executive skills that other leaders simply lack.

Rushika Bhatia highlighted three revealing statistics that illuminate and trace the development and allocation of female empowerment in the regional workplace – 66 per cent of Emirati women occupy the government workforce The UAE’s score in a global gender gap index by World Economic Forum was 0.64 8.6 per cent of the UAE’s millionaires are women Raising the bar The resonant and high-level dialogue established by SME Beyond Borders took the current SME agenda to a fresh level, anchoring it firmly in the economic sector and evaluating change, trends and opportunities in the light of provable macro and micro data. Our huge thanks and appreciation to our exceptional raft of leading sponsors and the keynote personalities who made an unforgettable occasion.

For an online version, please visit: www.smeadvisor.com/2014/12/anexperience-beyond-borders/

Online comparison Partner

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Official Publication

Organiser/Publisher

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The talented winners of 2014

Meet the winners!

In our exclusive review of the Stars of Business Awards 2014

The pinnacle of business achievement - and the largest business awards in the GCC

The winners, the gala evening, the fight to be the best, the 23 categories - all covered in our special Stars of Business 2104 Supplement www.smeadvisorme.com

As the readers of SME Advisor magazine know, Stars of Business has become an iconic awards brand like no other in the region. It recognizes the very best SMEs across 23 business categories. It’s universally respected as scientifically assessed and unimpeachably judged.

No wonder that in 2014, we had 3,028 entries - and now you can read all about the lucky, talented winners and the glittering, glamorous evening that recognised the true success stories in the regional SME space.

Recognising achievement and raising the bar November 30 was an apex date in the SME calendar. It’s when we recognised and honoured the SMEs whose performance has raised the bar and set new benchmarks of business excellence.

The fact is that every year, whether your business is just starting out and aspiring to great things, or a mediumsized enterprise with a brilliant history of growth and achievement, the Stars of Business competition is your chance to shine. There are 23 categories for SMEs

of every size and shape to enter - and it’s no accident that one of the key hallmarks of the occasion is that there is something for companies from every industry and background.

This year, the Stars of Business Awards annual gala was comprehensively the most glittering to date. Extensively promoted across the press and online media, it was a true ‘who’s who’ of the regional SME universe, attracting 800 attendees to a sumptuous, glamorous evening of networking, followed by gourmet dinner, awards ceremony and sensational entertainments. This year’s venue couldn’t have been better - the sensational Madinet Arena with its wealth of unrivalled amenities.

A night to remember on a grand scale, guests included senior government officials, captains of industry - and the owners, directors and managers of the region’s leading SMEs. Read all about it and catch up with the honoured winners in our special Awards supplement - see the next issue of SME Advisor!

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THE NEXT LEVEL

Gearing up for 2015 what CAN EO’s Accelerator do for you?

Tell us about the Accelerator programme.

The EO Accelerator is a structured programme run by entrepreneurs tailored to help grow start-ups in the region to cross USD 1m in revenue.

Who does it target? Who is it for?

• Entrepreneurs who are running a high growth business or high impact business with sales between USD 250,000 and USD 999,999 or venture backed companies with privately raised funds between USD 250,000 and USD 999,999 • Entrepreneurs who are committed to learning and growing with others • Entrepreneurs who take responsibility for their personal and business growth • Entrepreneurs who aggressively seek out resources • Entrepreneurs who are driven to achieve the USD 1m mark

Are you an entrepreneur looking to take your startup to new heights? Are you looking for access to a range of support programmes that will not only enrich your business proposition but give you a lifetime of experience, mentorship and learning?

The Accelerator programme driven by Entrepreneurs’ Organisation (EO) ticks all these boxes and provides a fresh, practical approach to fast-growth. SME Advisor met the man driving this initiative – Saahil Mehta, Co-chair and Communications chair, EO Accelerator UAE. 52

matched with other participants to form a small group known as an Accountability Group that will be overseen by an EO member. These groups will ensure that you are learning and growing as an individual, both through the learning provided in the learning events and through the interaction with your peers.

What are key features/elements of the Accelerator?

• Peer-to-Peer Learning - Participants will be able to network with other emerging entrepreneurs as well as experienced entrepreneurs from EO who can offer lessons and insights on overcoming business and personal challenges.

• Mentoring - Participants will be connected with an EO member, a successful entrepreneur who leads a business, and will serve as a mentor.

• Learning Events - Through a series of learning events, some which are specifically designed for Accelerator as well as broader EO learning events, participants will have access to real life tools to improve the effectiveness of their business.

• Accountability Group - As an Accelerator participant, you will be

How does an entrepreneur or SME owner benefit from being a part of this programme?

Apart from the four points mentioned above, each participant can learn through the real-life experiences through other entrepreneurs in a confidential environment.

What are the eligibility requirements of the programme?

Entrepreneurs who are running a high growth business or high impact business with sales between USD 250,000 and USD 999,999 or venture backed companies with privately raised funds between USD 250,000 and USD 999,999.

Is there a fee associated with the programme?

There is a fee of AED 8,400 per annum. Our year runs from July 1st until June 30th.

With a growing number of accelerators and entrepreneur support programmes in the region, how do you differentiate yourselves?

This is a programme run by highly successful entrepreneurs in the region

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the next level

sharing real-life experiences. Along with that, we have structured accountability groups that have been tried and tested by over 600 accelerators globally. In addition, we can tap into our global network of over 10,000 strong for any industry/geographic specific challenges that may arise.

The icing on the cake is that our interests are aligned with the participants where all parties involved are focused on crossing the USD 1m mark. When interests are aligned, results are always great!

Give us a snapshot of your 2015 curriculum and activity calendar.

Apart from the monthly accountability groups, the event list is shown below: January 13th: Social gathering for new members to acquaint with one another February 1st: Life coaching February end: Learning event focused on strategy March mid: Learning event with an expert panel April 15th: Learning event - Art of negotiation May mid: Learning event focused on finance June: Closing social event

Saahil Mehta, Co-chair and Communications chair, EO Accelerator UAE

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THE NEXT LEVEL

the key factors impacting the success of any business would be around people, finance, sales and marketing strategy – crucial areas that we focus on across our learning events.

Outside the Accelerator, what kind of support initiatives do you have in the pipeline?

We add value through our partnerships with organisations such as Impact Hub, which offers complimentary access and reductions on their services. We have also secured attractive fees with local law and auditing firms, which are tailored towards young businesses.

Is there any financial support provided to the enrolled participants? Are you working closely with venture capitalists, angel investors and risk partners to gain funding for those participating in the programme?

Financial support is not provided.

We do, however, have learning events planned which will give our participants access to venture capitalists and the wider finance community.

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What would you say is the percentage breakdown between professional qualifications and skills/vocational training provided by the sessions within the Accelerator?

The goal is to grow the revenues of the participants over USD 1m.

Keeping that in mind, we provide a tailor made training structure to each participant based on his or her strengths and weaknesses.

Once an entrepreneur or SME owner graduates from the programme, what kind of qualification do they receive?

Is there a physical certificate awarded to each one of them?

Participants do not receive any qualifications, however they do become eligible to apply for the local chapter of the Entrepreneurs’ Organisation – a global organisation consisting of over 140 chapters and 10,000 members.

success of any small business? Is there a set recipe for success?

Although a bit broad, the key factors impacting the success of any business would be around people, finance, sales and marketing strategy – crucial areas that we focus on across our learning events.

What are top challenges faced by entrepreneurs and SMEs today? How is the Accelerator preparing its participants to address these?

Based on the form completed by all Accelerator potentials, we can conclude the most challenging issues faced are around human resources, financial constraints, marketing, time management and scalability. That being said, the most critical factors are the small effects that can have a large impact. The biggest benefit we offer towards that is the vast variety of our 10,000 strong member base, which can ultimately share diverse experiences across continents and industries.

After the programme has ended, do you continue to provide any support to the companies that have graduated?

Although we don’t have a formal support structure for alumni, the mentors and board members are always accessible post-graduation.

Having worked with several start-ups and SMEs within the Accelerator, what would you say are key factors essential to the

For an online version, please visit: www.smeadvisor.com/2014/12/gearing-upfor-2015/

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presents

BUSINESS INTELLIGENCE FOR INTERNATIONAL TRADE www.tradeandexportme.com

Contents

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58 ADVISORY BOARD Key personalities sharing their expertise to ensure that we bring you the latest trends and issues in the field of trade.

Logistics 60 Success across borders Frank-Uwe Ungerer, Country Manager at DHL Express, UAE, discusses the logistics provider’s attractive SME proposition, and highlights future opportunities for international growth and development.

Trade & growth 64 Trade credit insurance – trends, opportunities and market signals Coface’s Head of Middle Eastern Countries, Massimo Falcioni,

Credit insurance is still in its infancy and we are working to raise awareness of its value through educating companies on alternative credit risk management solutions. p64

TRADE AND EXPORT MIDDLE EAST

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on how trade credit insurance can help traders and exporters supercharge their business.

Case study 68 SME Spotlight: Eurocap The young SME, set up in RAK FTZ, shares its inspirational success story and agenda for the New Year.

Legal 70 Coping with change: the importance of a plan Experts from Clyde & Co. explore the challenges that may arise as a result of improper succession planning.

Strategy 72 Out with the old and in with the new Dr. Ashraf Mahate, Head of Exports

Quality, price and delivery time play an important role in attracting and gaining the confidence of customers. p68

Market Intelligence, Dubai Exports, on crucial areas of your business that you need to reassess at the start of the New Year‌ HR 76 Hiring in 2015 Prominent practitioner Abbas Ali, Vice President, TASC Outsourcing, analyses the changing landscape and offers top tips.

Event review 80 The war on waste InSinkErator hosted an exclusive round table event, with the aim to shed some light on various issues on sustainability. We bring you exclusive highlights‌

TRADE and export middle east

ADVISORY BOARD Trade and Export Middle East presents a dynamic group of industry experts and leaders as part of its Advisory Board. The following key personalities will help add value to our analysis and ensure that we bring you the latest trends and issues in the field of trade.

H.E Saed Al Awadi CEO, Dubai Exports, Department of Economic Development, Dubai

Dr. Adeeb AlAfeefi Director, Foreign Trade & Export Support International Economic Relations Sector, Department of Economic Development, Abu Dhabi

Khalil Saqer Bin Gharib Corporate Communications Director, Dubai Customs

Lakshmanan Sankaran Chairman, Regional Banking Commission (MENA)- ICC Paris

Moin Anwar Trade & Investment Commissioner (Middle East), New South Wales Government, Australia

Peter Fort CEO, Ras Al Khaimah Free Trade Zone

For more information, please visit www.tradeandexportme.com

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LOGISTICS

Success across borders

As we move into 2015, there is an increased focus on expansion, overseas trade and global connectivity – particularly across the SME sector. SME Advisor met with FrankUwe Ungerer, Country Manager at DHL Express, UAE, who discussed the logistics provider’s attractive SME proposition, and highlighted future opportunities for international growth and development…

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LOGISTICS

Tell us about your role within DHL. I am the Country manager for DHL Express in the UAE, prior to that I was also Country Manager for DHL Express Greece and DHL Express Russia.

What are key products and services that you offer to SMEs? How can SMEs benefit from working with a global brand like yourselves?

DHL Express offers SMEs the peace of mind in terms of logistics solutions and reliability each time they ship with us. Our network, which extends to 220 countries, provides SMEs with the international reach they are looking for. More importantly, we ensure that we get this right the first time without any mishaps or problems. We also provide solutions such as Webship which is an online credit card shipping solution without the need of opening an account as well as the MyDHL shipping management platform to name a few.

Are these products and services priced differently, bearing in mind the financial limitations of SMEs? Our range of shipping solutions vary from an extremely critical deliveries on the same day and overnight delivery before 9:00am to less critical deliveries through our road network. Each solution is priced differently depending on how urgent the shipment is and the solutions we can offer our customers to cater for their needs.

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Can they be customised to suit the unique needs of each SME? Having our own dedicated aircraft and our extensive network provides DHL with the flexibility to customise our services to the needs of all our customers. From late pick-ups to earlier deliveries, we can easily adapt to help our customers meet their objectives.

One of the important factors for SMEs to grow is not only focus on the domestic growth of the business but also TO look at international or even regional markets for their expansion.

What would you say is the typical size and profile of SMEs that you currently work with?

DHL works with businesses of various sizes to help them reach their potential.

Over the last few years, we’ve seen an increasing focus on emerging markets. What according to you are crucial markets SMEs need to look at?

One of the important factors for SMEs to grow is not only focus on the domestic growth of the business but also look at international or even regional markets for their expansion – this is one of the key findings of the DHL Express study

by IHS, the global source of information and analytics. SMEs in the UAE should look at exporting or establishing a presence in other GCC markets as well as the wider MENA region such as Egypt or Morocco.

What are some of the biggest challenges to be wary of?

Some of the challenges we face here in the region are the changes in customs

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LOGISTICS

Southeast Asian economies stand out for their high depth scores relative to what one would expect given structural characteristics such as their size and level of economic development.

clearance processes as well as the congested borders for clearance, which can sometimes take weeks rather than days. That is why DHL – being the market leader – works very closely with the different customs authorities across the region. We are also investing in enhancing our presence and infrastructure through the opening of three new gateways in KSA as well as a new ground operations and land side facility in Egypt to name a few. This kind of forward thinking will definitely help ease some of the current challenges our customers are facing.

How can DHL work with SMEs in their quest to become truly global?

We help various SMEs and businesses in reaching out to the international markets and establish growth through supporting their logistics needs and providing solutions that will help facilitate their trade. That is why we have various sales channels to cater for the different customers in a personalised manner and advise them on the right approach and paperwork for shipping to avoid any delays in customs clearances or fines. This way our customers can focus on the other parts of their business.

What are the factors that separate local SMEs from top performers in the world’s leading markets?

As I highlighted earlier, the major difference that separates local SMEs from the other top performers is the focus on international and regional markets rather than locally. A DHL Express study by IHS showed that through increased international trading, SMEs can improve their

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competitiveness, whereby 26 per cent of the international SMEs were top performers vs. 13 per cent of the domestic only SMEs, out of which 39 per cent of international top-performers have increased share of exports by more than 20 per cent in last three years

You’ve recently released the DHL Global Connectedness Index 2014. What are key takeaways of the report that SMEs need to take note of?

The 10 countries, where global connectedness increased the most from 2011 to 2013, are all emerging economies. However, in terms of their integration into international capital, information and people flows, emerging economies still lag far behind.

Europe is the world’s most globally connected region, with nine of the 10 most connected countries. European countries average the highest scores with regard to trade and people flows, and North America is the leading region on capital and information flows.

Southeast Asian economies stand out for their high depth scores relative to what one would expect given structural characteristics such as their size and level of economic development. The top five outperformers were Malaysia, Vietnam, Cambodia, Hong Kong SAR (China) and Singapore.

The report also highlights a section called ‘Country’s Connectedness Trends’. How connected do you think SMEs in this region are?

While one of the top findings is that the Middle East and North Africa region was the only region to suffer a large drop in its connectedness

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LOGISTICS

TOP

4

Breaking Borders: a study from DHL & EIU

1. The majority of SMEs expect

WHERE ARE SMES’ OVERSEAS OPERATIONS LOCATED?

2. SMEs expand to

+50%

to derive up to 50% of their revenues internationally

markets that resemble

2014

40% think Africa offers no growth

2019

WHERE IS THE OPPORTUNITY? CHINA‘S MARKET SIZE IS STILL A MAGNET FOR SMES, ALTHOUGH CHALLENGES REMAIN

potential... but GDP growth projected at 5% in 2015

G7 32,5%

America BRICM 18,5%

their own

WESTERN EUROPE

AFRICA OFFERS GROWTH OPPORTUNITIES, BUT THE VAST MAJORITY OF SMES FEAR THE CHALLENGES

KEY FINDINGS

Western Europe

G7 4,6%

BRICM 7%

RUSSIA / CIS

NORTH AMERICA

CHINA CENTRAL AMERICA

EASTERN EUROPE

3. The three biggest barriers for SMEs

All figures are from Breaking Borders, an Economist Intelligence Unit report commissioned by DHL

MIDDLE EAST INDIA SOUTH AMERICA

AUSTRALIA / NEW ZEALAND

AFRICA

Infrastructure challenges

Cultural issues

Political stability

4. Partnerships and networks G7

BRICM

are important expansion considerations for SMEs

between 2011 and 2013, the UAE was able to enhance its global connectedness and jump from the 23rd position to 12th out of 140 countries in the study.

With the UAE being one of the most connected regions in the world, SMEs have easier access (infrastructure + capabilities) to other foreign markets.

Mobility, connectivity and the digital revolution are also helping in globalising SMEs. At DHL, how are you integrating technology to improve your SME offer?

With the UAE being one of the most connected regions in the world, SMEs have easier access (infrastructure + capabilities) to other foreign markets. www.tradeandexportme.com

Technology is one of the important and crucial platforms that provide our customers, including SMEs, with the best in class logistics solutions, which is why we constantly invest in enhancing out IT capabilities and offerings. Today, DHL Express UAE holds several ISO certifications including ISO 9001 for Quality management systems, ISO 1401 and OHSAS 18001 for Environmental and safety management systems standards as well as the ISO 20,000 for IT service management, making DHL

Express UAE the first logistics provider in the Middle East to receive the globally recognised accreditation. DHL Express is also GSOP & TAPA Certified elements for the solutions that DHL provides.

This is an international standard for the logistics industry in terms of the automation, safety, security etc. for the various facilities.

Finally, what are the top three business, economic or financial trends that will shape 2015?

We expect the logistics industry in the UAE to continue expanding. The real estate and retail sectors are also expected to maintain their strong growth in the UAE, especially with the new malls and other real estate projects that will be coming into the market in 2015.

For an online version, please visit: www.tradeandexportme.com/2014/12/ success-across-borders/

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TRADE & GROWTH

Trade Credit Insurance trends, opportunities and market signals

Leading trade credit insurance (TCI) expert and Coface’s Head of Middle Eastern Countries, Massimo Falcioni, shares with Trade and Export Middle East how the top-notch industry player is helping traders and exporters supercharge their growth and become globally competitive entities.

Massimo Falcioni, Head of Middle Eastern Countries, Coface

Can you please give us a brief background of Coface?

Established in 1946, the Compagnie Française d’Assurance pour le Commerce Extérieur (COFACE) is a global credit insurer, offering companies solutions to protect them against the risk of financial default of their clients, both on the domestic market and for export. Coface is listed on Euronext Paris and its shareholders’ structure is 58.62 per cent public and 41.35 per cent Natixis.

Coface is focused entirely on supporting its clients’ growth in their

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home markets and with their exports by offering credit insurance services via its operations across 67 countries, made up of 4,400 employees and 72 nationalities Coface has been active in the Gulf since 2007, with its local HQ at Dubai International Financial Centre. The company serves and advises all types of companies and industries trading and exporting in the region, through a team of 25 professionals with local knowhow and global experience.

With its 30,000 companies monitored on a daily basis for

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TRADE & GROWTH

their payment behaviours and creditworthiness, we can secure the sales from non-payment for more than EUR six billion exposure in the Gulf region only. Through our worldwide database of more than 65 million companies monitored, we serve 37,000 clients globally, which accounts for a global exposure of insured receivable of EUR 452 billion.

Can you please describe Coface’s service and product portfolio? What’s the percentage of big corporates and SMEs you work with?

Coface offers adapted risk prevention, monitoring and protection services to companies of all sizes and in all sectors, and in this region, we work with many SMEs spanning various industries.

One of the major challenges of SMEs in the region is access to finance. Through our tailored product line, we continually support the SME sector, which represents 30 per cent of our portfolio in the GCC, to improve borrowing power and increase available capital by converting account receivables into a performing asset.

How does it work for an SME to access to this facility with Coface?

It is very easy. There are three simple steps to follow:

Step One: Request a meeting with one of our Coface experts to evaluate the creditworthiness of the buyer portfolio. Contact details can easily be found on www.coface.ae.

Step Two: Request a quotation for insuring against non-payment through our local insurance partners.

Step Three: Request a banking facility (account receivables discounting) through Coface’s local bank partners or any of our other local and international partners.

The Middle East is increasingly becoming a top performer in trade. In your opinion, which

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countries are doing better than the others and why, when it comes to trade?

The UAE is a top performing trading country in the Middle East region.

The non-oil sector is continuously witnessing high levels of growth, followed by similar performances in KSA, Qatar and Oman.

Throughout the GCC region, there is heavy dependence on the hydrocarbon sector for budget revenues. However, we are seeing countries taking progressive steps towards diversification, through developing the necessary infrastructure to cater to non-oil industry growth. The UAE is a key example of this.

Other countries including Saudi Arabia, Qatar and Bahrain, are implementing diversification policies with the development of secondary cities as is being witnessed in Saudi Arabia. We are seeing focused development in specific industries, with the aluminium sector in Bahrain seeing growth and Qatari airline logistics receiving investment.

While in Kuwait and Oman, there is a government-level push for entrepreneurship through SMEs. With these continued efforts to build diversified business models, the Middle East will continue to develop a framework for sustainable economic growth and active trading portfolios.

What steps are you taking in establishing a good relationship with potential trade credit insurance customers?

We are listening to our customers’ needs to find the right solutions for their business – whether it is a MNC or SME. We offer advice on all possible practical solutions suited to their business that support their growth and development, and ultimately help expand their business safely. Working with Coface, our customers have access to our valuable database of information

on more than 30,000 businesses in the GCC that allows them to make informed decisions with our advice and expertise.

The UAE takes pride on having a very diverse economy; which sectors have the highest growth potential?

The hydrocarbon sector is absolutely key to the country’s growth. The UAE produces 3.5 per cent of the global crude oil supply, representing seven per cent of the proven reserves, and it is ranked seventh in the world and fourth among the OPEC countries.

The completion of infrastructure projects at existing oil fields will support the country’s strategy to increase its production capacity.

However, political and regional developments, rising domestic demand for energy and the need to enhance the security of oil shipments will continue to be the key challenges in this sector.

The retail sector is also one of the fastest growing industries in the country on the back of increasing wealth, economic sustainability and higher domestic consumption.

The supportive policies undertaken by the government and its positive implication on the private sector has created a favourable environment for the development of this sector.

The agro food sector is also becoming increasingly important in the UAE in line with the growing population and per capita income.

The country is the second largest food producer in the GCC, after Saudi Arabia. Yet its production capacity is short of the demand as the cultivable lands and water resources are limited, meaning the UAE imports around 90 per cent of its foods. This heavy dependence on food imports is a challenge given the vulnerability to the food price volatility. To counter price hikes, the government balances the price of food produce, however there is risk of narrowing profit margins for businesses within the industry.

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TRADE & GROWTH

Credit insurance is still in its infancy and we are working to raise awareness of its value through educating companies’ on alternative credit risk management solutions.

Looking at the transportation sector, both Dubai and Abu Dhabi continue to make aggressive investments.

In addition, the support from local governments, huge infrastructure investments, the advantage of the UAE’s strategic location and resilient economic growth are expected to reinforce the development of logistics in the UAE. The increasing trade volume in the region and across the world will undoubtedly add to this development.

Do you offer tailor-made solutions for SMEs? Of course. SMEs have different needs: they want to have an easy and simple relationship with the insurer and in managing the policy. At Coface, we consider that every customer is unique and needs a different customer experience based on their expectations.

Statistics say that in the GCC less than 0.006 per cent of eligible transactions are protected by any type of credit insurance. Why do you think this is? What can be done to increase awareness?

It is a fact that the oil & gas sector is the major contributor to the GDP. This sector is not immediately in the scope of credit insurance (except for petrochemical products which

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represent a key sector for credit insurance). Credit insurance is still in its infancy and we are working to raise awareness of its value through educating companies’ on alternative credit risk management solutions.

Many CFOs still opt for banks’ letter credit tool, despite it being more costly and restrictive and time taking; however credit insurance is quickly gaining traction in the region thanks to this education process.

How can TCI benefit an SME – especially when it comes to protecting cashflow and capital?

• Reduce the risk of significant losses • Reduce the need of reserves on bad debts • Free up working capital to be invested more productively • Increase the rating/creditworthiness of the SME vs. the banking system as stated by Basel II • Enhance the company’s discipline and compliancy in managing trade credit to improve working capital and financial planning What kinds of risks can SMEs insure using TCI? TCI covers risk of non-payment in B2B trade transactions. The coverage is extended to open account sales (transactions under cash, letter of credit and bank guarantees are excluded). It provides protection against insolvency or protracted default. In the case of export sales, political risks are also covered by TCI. What are key factors to bear in mind when looking for a TCI policy?

1. Coverage provided – The very essence of TCI is to protect your receivables. The coverage provided must be enough to cover your outstanding receivables from a buyer at any point during the year.

2. Risk covered – A company needs to be aware of the risks that the TCI policy covers. Ensure that it covers all the risks of non-payment (protracted

default and insolvency) and political risk for export sales.

3. Countries covered – Another important aspect to consider is which countries are covered by your insurer. In case you are planning to expand your business to new markets the insurer should be able to offer you support and coverage in those markets.

4. The network of the provider – It is important that your insurer is in touch with both your market and your customers’ markets. Only then will they have the in-depth knowledge of the business environment and debtors to be able to prevent risks by closely monitoring their development to act swiftly should they materialise.

5. Premium rate – The most obvious is the premium rate being charged by your insurance provider. It is good to know the prevailing rates from competitors to ensure that you are not overcharged.

What is the future of TCI in the region?

I expect the industry to reach USD 70 million in gross written premiums in 2015, with an average industry loss ratio of approximately 50 per cent.

The competition is increasing, with the arrival of several operators offering trade credit specialty insurance solutions. If the moratorium of the insurance sector is solved, I would expect the global credit insurance companies to invest capital and resources in the UAE, alongside more offers of sharia-compliant products, proposed by Takaful companies.

For an online version, please visit: www.tradeandexportme.com/2014/12/ trade-credit-insurance/

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CASE STUDY

SME spotlight: Eurocap Manufacturing businesses in the region have reached hitherto unparalleled levels of efficiency, profitability and innovation. SME Advisor caught up with one such business within this powerhouse SME sector that is not only maximising business opportunities, but is leading the pack – Eurocap. The young SME, set up in RAK FTZ, shares its inspirational success story…

Can you please give us a brief background about Eurocap?

Eurocap was formed in April 2006, and the company started its manufacturing activities from January 2007. We are located in the Technology Park of RAK Free Trade Zone, which is about one hour drive from Dubai. We are into manufacturing of caps and lids through the injection moulding process. We also carry out vacuum metallisation on plastic caps and perfume glass bottles, lacquering on perfume glass bottles, and hot stamping on plastic caps.

P. Haridas, Manager for Sales & Administration, Eurocap

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Eurocap specialises in producing customised perfume bottle caps.

Can you tell us how the demand in this market is and how big is its share in the manufacturing trading industry in this region?

Eurocap is specialised in developing and producing custom made caps for perfume bottles, deodorant cans etc. We develop packaging based on our customer’s exclusive designs. We have our own standard design caps as well, which many customers buy from us, like they select the standard design bottles from the bottle manufacturer. When the customers go for an exclusive design, it becomes their property. They plan the designs in such a way that it gives rich and unique look. In this region, more customers opt for readily available standard design caps, when they consider the cost involved for designing and developing an exclusive packaging.

What attracted you to setting up base in Ras Al Khaimah?

Ras Al Khaimah provides a wonderful business environment to work in.

We felt that it is a prime location for

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CASE STUDY

How is the competition in this industry? What can you say is your edge among your competitors?

The main challenge to our business is competition from Chinese suppliers. But offering European quality packaging at very competitive prices makes Eurocap appealing.

Do you also invest in the skill development of your employees – providing workshops, trainings and the like?

industrial investors considering the stable utility supplies, a wide logistics network and easy access to suppliers.

The main reason for setting up our unit in RAK FTZ’s Technology Park was the convenience of the location, with logistical accessibility to both Sharjah and Dubai.

How has your business grown since your establishment in 2006?

There is definitely a growth in our business since we started our manufacturing activities in 2007.

Having carved a niche in the Middle East market, we have already entered into the US, Europe and Russian markets. As part of our growth strategy, we are now trying to enter new markets.

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We do have an in-house training system.

Every time we bring a new mould, be it our customer’s exclusive design or our own, the technicians and machine operators will be briefed well about the mould construction, method of moulding and other technicalities. Similarly, when a new employee joins our organisation, he or she is given the required training through workshops – this is an integral part of our company policy.

What steps are you taking in terms of promoting the Eurocap brand in an out of this region?

And in a larger sense the ‘Made in the UAE’ brand?

Eurocap is known in the market as quality product manufacturers of injection moulded packaging items.

We are actively participating in various exhibitions and visiting prospective customers. We do get enquiries from customers when they see our own designs on our website. We participate in the renowned “Beautyworld Middle East Exhibition” that takes place every year in Dubai.

Quality, price and delivery time play an important role in attracting and gaining the confidence of customers.

What are your future plans for further growth?

Eurocap has a modern and efficient production unit, where the European-made equipment operates in a tempered and dust filtered environment. We plan to introduce new designs of cap. We are further focusing on providing a complete packaging solution to our customers and make available everything under one roof, which will give them a peace of mind!

What advice would you give to new companies looking to open in the manufacturing and trading sector?

We have observed that customers are looking for manufacturers/suppliers who can deliver quality products at competitive prices. Quality, price and delivery time play an important role in attracting and gaining the confidence of customers. Also, customers look for an uninterrupted supply. One should consider these factors in mind to be successful!

For an online version, please visit: www.tradeandexportme.com/2014/12/smespotlight-eurocap/

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LEGAL

Coping with change the importance of a plan In the context of family businesses, many of which are run by a single person, failing to plan for change could put the future of the business in jeopardy, especially if the individual who manages the business is no longer able to continue in his role. In the following feature, experts from Clyde & Co. explore the issues and challenges that may arise as a result of lack of proper corporate and succession planning…

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“Nothing is constant but change.”

A limited liability company that is incorporated in the United Arab Emirates (LLC) is required, pursuant to applicable law, to have two shareholders, one of which must be a UAE national or an entity that is wholly owned by UAE nationals who/that holds shares representing 51 per cent of the capital of such entity (the Local Shareholder).

Notwithstanding the Local Shareholder holding the majority shareholding in the LLC, in a number of cases, the minority 49 per cent shareholder (the Minority Shareholder) may assume day to day management control of the LLC. However, in the event that a shareholder dies, is incapacitated or is otherwise unavailable to continue in his/its capacity as a shareholder,

complications can (and often do) arise.

Where the shares in the LLC are held by the Local Shareholder in his personal capacity, upon his death, the shares of the Local Shareholder would devolve to his heirs, and may be distributed as part of his estate, in accordance with the principles of UAE inheritance law (which are subject to Sharia law). From the perspective of the Minority Shareholder, this may pose a particular challenge as, among other things, there may be a conflict among the heirs and consequently obtaining a “Certificate of Heirs” (that sets out the names of the deceased’s heirs) from the Sharia court may be delayed. The heirs may also not be willing to cooperate with the Minority Shareholder or share the Minority Shareholder’s vision for the future of the business, and may attempt to

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LEGAL

The relevant commercial parties may have to incur considerable time and expense in resolving issues with the heirs of the individual shareholder, prior to coming to a position from which they can drive the business forward.

In light of such challenges, the stakeholders in such enterprises should consider implementing an appropriate corporate structure that permits the business to function whilst mitigating the risks that arise should anything untoward happen to the Local Shareholder or any other individual shareholder. It is often recommended that an individual partner’s stake in an LLC be held through a corporate vehicle and for an LLC to adopt an appropriate corporate governance regime so as to enable, among other things, more than one person to represent the LLC and act as its authorised signatory.

become actively involved in the running of the business, despite any earlier agreement that may have been reached between the Local Shareholder and the Minority Shareholder.

In addition, the business of the LLC may be adversely impacted, particularly in respect of any key relationships (whether with business partners, employees or customers) which were led by the Local Shareholder, and in respect of operational issues such as control over the LLC’s bank accounts and dealings with governmental authorities, including UAE Ministry of Labour and UAE Ministry of Interior, which oversee the processes relating to employees of businesses in the UAE. Further, in the event of the death of an individual shareholder, it may not be possible to complete, on an urgent basis, a transfer of shares in an LLC.

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Family businesses A number of family businesses in the UAE are structured in a similar manner, whether through an LLC or otherwise. Family businesses tend to be run by a single person or group of persons. In the event that the individual who controls the family business dies, the future of the business is put into jeopardy. It is therefore imperative that a robust corporate structure and succession plan is implemented during the lifetime of the patriarch, in order to ensure continuity of the business during a generational change. Depending on the size of the family and the nature of its interests, such structures may include the ‘corporatization’ of business lines and ring fencing of liabilities, and hardwiring the provisions of a family protocol document or family constitution into the constitutive documents of the LLC or all the entities that comprise the group.

A G1 family’s requirements in this regard may be substantially different to that of a G4 or G5 family, which would have several stakeholders, who may have competing interests and goals.

However, irrespective of the longevity of the business or the constitution of the

It is therefore imperative that a robust corporate structure and succession plan is implemented during the lifetime of the patriarch, in order to ensure continuity of the business during a generational change. family, it is never too soon to consider the needs of a business and implement an effective corporate structure and succession plan that will ensure a smooth running of the business, irrespective of the circumstances of each shareholder, and a transition of the business to future generations.

Further information If you would like further information on any issue raised in this update please contact: Prarthna Chaddha Partner E: prarthna.chaddha@clydeco.com Raeesa Chowdhury Associate E: raeesa.chowdhury@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com

For an online version, please visit: www.tradeandexportme.com/2014/12/ coping-with-change//

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Strategy

Out with the old and in with the new Running a business is a very time consuming activity, especially for resource constrained SMEs. Often there is little time to reflect on past activities and reassess the corporate performance so as to make those very important changes.

Despite the shortages of time it’s always important for an entrepreneur to understand what has worked well and what needs to be changed.

What better time to reflect and assess the company’s performance than the New Year? In the following article, Dr. Ashraf Mahate, Head of Exports Market Intelligence, Dubai Exports, highlights crucial areas that every business should look into…

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Better at planning If a business is going to succeed then it needs to plan effectively.

All firms need to ensure that they have sufficient liquidity to meet their day to day costs. Therefore, cash becomes the life blood of any business. The common belief among entrepreneurs is that they need to just focus on profits. The reality is if a SME focuses on simply profits at the expense of cash flow planning and management then it has a higher probability of going out of business. All SMEs should prepare a cash flow projection (or budget) on a monthly basis at the start of each year. Then each month the SME needs to evaluate

the budgeted figures with actuals.

Of course, in reality there are often differences between the actuals and budgeted figures but the important aspect is to understand the reasons.

The usual reasons for variations tend to be increased prices, increased usage or a combination of both. If prices have changed suddenly then the SME needs to understand the impact of this on their bottom line and whether they may need to enter into some type of hedging strategy. If the variation is due to increased usage the SME may need to understand whether it’s as a result of greater sales or wastage.

Whatever the reason for the variation the process of analysing

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Strategy

The simple lesson of increasing sales is to have a more engaged customer base.

it allows the SME to gain a greater understanding of its business.

Increased sales through better customer engagement.

The simple lesson of increasing sales is to have a more engaged customer base. So the question then becomes how to engage with existing and potential customers. As difficult as it is there are still some companies which still do not have a website.

Therefore, if a firm does not have a website it needs to develop one that is useful and relevant to the target audience. For businesses that have a website they should seek to regularly update their website with current information. More often

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than not SMEs set up a website thinking that is the end of their online presence without updating it and making it relevant for their target audience.

In the modern electronic world, social media is an important tool that companies can use effectively to engage their customers as well as to increase sales. SMEs need to get onto Twitter, Facebook, LinkedIn and the other social media platforms to talk directly with existing and potential customers.

SMEs tend to be passionate about their companies and they need to go out and talk about it directly to customers. Anecdotal evidence shows that when firms have a

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Strategy

direct line of communication with customers it tends to increase their level of loyalty and allows them to see that the firm personally cares about their customers.

Improved accounts receivables Sales are of course important for all firms but so is the ability to collect accounts receivable. It is normal practice for firms to offer credit to its customers however it is important that they are collected on time and in a friendly manner.

Therefore, the SME needs to constantly have its eyes on how its customers are making their payments. As such the SME needs to produce regular aging schedule of its accounts receivables. The SME can also look at alternative ways of speeding up its accounts receivables such as allowing customers to pay through their website. Several case studies show that when firms provide their customers the facility of paying via the website it tends to reduce the length of accounts receivables and the level of bad debts. Alternatively, the SME can use invoice discounting or factoring as a means of obtaining immediate cashflow on goods delivered or services provided through a third party such as a bank. The key difference between factoring and invoice discounting is that in the former the third party company takes control of the sales ledger which includes chasing customers for settlement of invoices and managing the credit control of the business. In the case of invoice discounting, the SME maintains responsibility for the sales ledger, payment chasing and invoice processing. Typically, a firm tends to receive 80 per cent to 85 per cent of the invoice value at the time of submission to the third party company. Once the client of the SME has paid the invoice value, the reminder is paid to the firm minus the administrative costs. A SME can fully insure against a client

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not paying through entering into a non-recall agreement whereby the third party takes full for nonpayment.

Better inventory management Inventory is important for all firms as the cost of running out may mean not only a lost sale but a customer who may not return.

At the same time high inventory costs are a huge burden for a firm in terms of working capital tied up, cost of warehousing and of course the threat of goods becoming obsolete. The general rule is that 80 per cent of sales are generated by 20 per cent of the inventory investment. The rest of the inventory tends to be either slow moving or even “dead”.

SMEs need to regularly go through their inventory to make it more productive and in the process sell items which have a high risk of becoming obsolete. This may involve the firm biting the bullet through deep mark downs but the positive aspect is that it allows it to generate cash which can be utilised more profitably.

2015 – Time to implement change At the end of the day New Year’s resolutions are only as good as the commitment that backs them.

Therefore, it’s important for SMEs to make small changes that improves their business and makes them more competitive especially on a global scale. The New Year is the perfect time for companies to start making the changes.

Dr. Mahate received his doctorate from Cass City University Business School in London (UK).

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 Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). He can be reached at ashraf.mahate@ dedc.gov.ae.

For an online version, please visit: www.tradeandexportme.com/2014/12/outwith-the-old/

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HR

Hiring in 2015

strategies to get you ahead of the curve The last couple of years have seen the areas of recruitment and talent management evolve rapidly. With factors such as globalisation, mobility and Generation Z coming into play, it is imperative for SMEs to rethink their strategies and implement fresh initiatives in the New Year. We ask leading expert Abbas Ali, Vice President, TASC Outsourcing, to analyse the changing landscape and offer top tips…

Abbas Ali, Vice President, TASC Outsourcing

According to a report released by global IT research firm, CompTIA, 68 per cent of employers in the Middle East are primarily looking for network and infrastructure experience, 58 per cent are seeking helpdesk and IT support, 53 per cent are looking for office IT equipment maintenance and 51 per cent require storage and data back-up capabilities.

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Can you please give us a brief background of TASC Outsourcing?

Established in November 2007, TASC Outsourcing is a contract staffing and talent management company that outsources professionals to prominent companies across the country.

With a large resource base of professionals, from over 53 countries, TASC Outsourcing is the partner of choice to more than 200 companies in the region. The contract staff, employed and compensated at par with industry standards by TASC, are qualified across a range of 75 job functions in diverse verticals, including Information technology, Customer service and Call centres, Banking, Oil and gas, Sales and marketing, Administration and Support, and Retail.

TASC takes an innovative and proactive approach that is driven by market insights. A dedicated research

team closely monitors market and industry trends and conveys the findings to the recruitment team. This, in turn, enables TASC to stay ahead of the competition by sourcing candidates to meet forecasted demand.

Leveraging its expertise in HR practices, TASC also supports clients by managing their day-today transactional activity related to attendance, payroll, sales, MIS monitoring, and more.

TASC’s forward planning and customer focused strategy has proven to help companies on the growth path. It also provides a quick start to companies that are in the formation stage, helping to reduce clients’ time to market by deploying contract staff for their on-ground operations.

What would you say were major hiring trends in 2014? How do you see them changing in 2015? www.tradeandexportme.com

HR

The UAE job market on the whole has improved in 2014 with a lot of opportunities opening up across various sectors. Dubai’s vision to become a smart city by 2020 has seen an exceptional boom in demand not only for talent in the IT sector but also for technology talent across all industries. The focus for 2015 is shifting to hiring senior level talent. On the other hand, firms are also realising the need to cater to generation Z – the younger, connected youth. India and other Asian countries will continue to be top sources of talent for the Middle East.

However, the popularity of the new Indian administration and India’s subsequent healthy economic outlook, may affect the size of the exportable talent pool in the subcontinent. Pay-scales will see a gradual but consistent upward movement in the New Year, especially in sectors such as Hospitality, Banking and Construction.

What do you hope to do differently in the New Year? How has your strategy evolved?

Our strategy has evolved to reflect the hiring needs for 2015. We currently hire from 47 countries, and have expanded our presence to many new target countries. We have also hired new sector specialists to reflect industry needs.

Given the economic growth predicted for the region next year, we hope to expand ever further across business lines and geographies.

For businesses looking to hire in 2015, what are key factors they need to bear in mind?

The economy is going in to a growth cycle that will prompt job-seekers to look for better jobs elsewhere. Before hiring, the foremost concern for firms in the New Year should be to retain their best talent.

More employee engagement activities and trainings help relative increases in pay

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For firms looking to hire, the factors to bear in mind include forecasted industry performance in 2015, global influences and talent accessibility at a macro level. scales and benefits, and meeting other employee needs.

For firms looking to hire, the factors to bear in mind include forecasted industry performance in 2015, global influences and talent accessibility at a macro level. The firm’s financial performance will play a huge part in determining recruitment targets.

We would recommend that firms practice more caution in the hiring process to avoid wastage of resources.

A number of companies approach TASC to hire contract staff that may or may not be made permanent based on performance. This type of ‘test and hire’ approach can help reduce the chances of ‘mis-hiring’.

As work flows expand, businesses should have ready access to a strong candidate base for potential openings in the future. Some tips that can help employers in this regard are keeping a record of resumes, encouraging employees to participate in trade forums and become members of trade associations, where there is a good chance of meeting qualified talent, and implementing internship programmes that provide direct access to young talent.

With the Expo 2020 in the pipeline, it has been predicted that 300,000 jobs will be generated in the UAE. When do you see this

kicking in? Which sectors will have the highest demands for new staff and which positions?

We expect the construction, IT, retail and hospitality industries to have the highest demand for new staff in the lead up to Expo 2020. Recruitment towards the event has already been initiated in these industries, although hiring will continually increase based on demand starting from 2015.

While there will be a need for senior level talent to pioneer new divisions and lead projects, there will be a demand for trained midlevel and junior staff as well. The hospitality industry will need trained service professionals or those who are willing to learn quickly on their feet. All industries will need IT professionals as Dubai moves towards realising its goal of being a smart city by 2020. We expect a 15-20 per cent growth in IT sector staffing leading up to Expo 2020, going up to even 20-25 per cent in 2017.

What are the hiring trends that you see in years leading up to the Expo?

Did you know?

In 2014, TASC reported year-onyear increase in contract staffing in the UAE from approximately 15 per cent to 20 per cent. The government sector, telecom and IT, large retail companies, and the oil and gas sector have been first to embrace contract staffing, with engineering and trading companies lagging behind. With the lead up to Expo 2020, contract staffing will become even more important as firms will look to hire on a large scale, or for project-based work.

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HR

How do you ensure that you adhere to the legal regulations in the markets that you are sourcing people from?

TASC is licensed to outsource global talent as contract staff to clients across the country. In this respect, we provide end-to-end support from sourcing to selecting and finally on boarding.

Every country we source from has its unique requirements. We work with the embassies, government authorities and local partners in those countries to ensure full compliance and seamless transition of our new recruits into the UAE. Our field experts are aware of the legal regulations of each of our source countries and ensure compliance standards are met with each contracted employee.

What are the main issues that you face in terms of finding talents and keeping up with clients’ demands?

It has been said that the UAE is in a “talent crisis” right now, as there is a mismatch between the demand and supply of talent. In some specialised sectors it is increasingly difficult to find the right talent to match the job profile. However, this is the case with all booming economies.

Based on our evaluations at TASC, companies are more wary of the issue of talent mismatch. Our clients trust us to provide them with the correct fit for their needs, and in effect help them safeguard their business goals, revenues and growth. In some cases, companies wait for months before finalising a candidate for a specialised role.

Additionally, there are age constraints for senior positions as these are mostly filled by expats and hence transient in nature. It is a challenge to find sufficiently senior and experienced

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expats for top management roles, who are still capable of putting a few good years into the organisation.

Turnover is also a big challenge.

The struggle to retain good talent will always be present, however with improved retention strategies employee turnover can be lessened.

core offering rather than administrative worries. We also offer project-based hiring, which caters to clients who have a ‘try-before-you-buy’ mentality. SMEs can benefit from hiring a group of people for a short period of time before they hire them as permanent staff to ensure they are a right fit for the company.

Is employee retention a core part of your services? If so, what kind of initiatives do you have in terms of building loyalty among staff?

How do you plan to go about this anticipated increase in demand for recruitment and hiring management?

Our employee satisfaction scores at TASC are in fact higher than those of our clients, so we do have a very strong focus on retention strategies and building loyalty among our own employees.

For clients, we provide HR capabilities that include employee engagement strategies. Our recommendations include recruiting people that fit in the culture of the company, regular employee development programs and trainings, team-building exercises, biannual, occasionally quarterly reviews, open forums to discuss employee challenges and grievances and review of managerial staff, including evaluation of the mentorship processes.

We have expanded into many other regions where talent is available and willing to move to the UAE. We have also hired more sector specialists to cater to the growing needs of the local economy.

Additionally, we use technology to be more efficient in our practices. Our recent adoption of new processes and technology, to manage thousands of our employees who are contracted to companies in the UAE, has helped us manage our processes efficiently. A progressive combination of technology and innovation is essential to the growth of any business today. Specifically in the staffing industry, it is important to ensure transparency in processes in order to build long-term engagement between the two most important stakeholders – the employee and the customer.

Do you think SMEs can gain an edge to be globally competitive by collaborating with outsourcing agencies such as yourself?

We are an SME and therefore are no strangers to the challenges SMEs face when trying to scale their business. Since start-up costs are very high in the initial stages, we recommend outsourcing at a later stage when the business is in a steady state of success. At that point, we are able to come in and help the business with recruitment or day-to-day HR processes which takes away the stress and cost of in-house HR inefficiencies.

This allows the business to focus on its

Currently your operations are mostly focused here in the UAE, do you plan to expand to other markets in the near future?

We are focused on the UAE given the growth in the economy here. However, we do intend to expand into other markets in 2015.

For an online version, please visit: www.tradeandexportme.com/2014/12/hiringin-2015/

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Event review

The war on waste

Spotlight on food waste management and the role of the hospitality industry

Held on December 7, 2014 at the Ritz Carlton, DIFC, InSinkErator, the leading manufacturer of residential and commercial waste disposals, in collaboration with CPI Media Group, hosted an exclusive round table event, with the aim to shed some light on various key issues of sustainability.

Upcoming industry relevant event EcoWASTE 2015 (January 19-22, Abu Dhabi National Exhibition Centre) is an exhibition that aims to become the leading specialised event for sustainable waste management and recycling, bringing together prominent local and international technology and service providers, local and regional buyers, and industry professionals from both the private and public sectors.

EcoWASTE is designed to cover the entire solid waste management services and solutions required to address the dramatic increase per capita of waste production in the region. (For more information visit: www.ecowaste.ae)

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The rapid economic expansion of the UAE has been accompanied by a growth in population as well. The significant progress of various sectors in the nation triggered by industrialisation has also resulted in increased waste generation.

Records from the Dubai Municipality indicate that, in Dubai alone an average of 8,000 tonnes of waste every day is generated with each resident contributing about 2.7 kilograms, which translates into almost 1,000 kilograms per person a year. With several of waste management systems in place, what more can we do to address this growing dilemma?

Present at the event were leaders in the fields of architecture, consultancy, facilities management and hospitality gather to put focus on waste management systems tapping on a major element – food waste management solutions.

Paul Godfrey, Group Director of Editorial, CPI Media Group, moderated the powerful and enthusing afternoon of dialogues and insights. Kicking-off with a warm welcome to the panelists, he opened the table to discuss over the key challenges faced by the region and UAE in particular when it comes to sustainability and waste management.

Throughout the first half of the discussions it seemed that major bottlenecks in the UAE, when it comes to sustainability, include the lack of openness among local businesses. A call for a legislation mandating the inclusion of sustainability agendas to an entity’s business model was also made prevalent by the participants.

“In the past we have implemented projects for most of the multinational corporations eyeing this region. We were increasingly being pushed by these corporations to look at areas suitable for green buildings, but the problem was that the local property developers were not really keen, because they felt that no one was really focusing on green buildings. So there’s always been a separation between multinational and local property developers,” said Ulysses Pappadopolous, Founder & Managing Partner, Green Emirates Consultancy.

“Although the government structure here in the UAE is somewhat similar to that of some European countries there are significant differences when it comes to sustainability. I find that between countries like the UK and in the GCC is that sustainability agendas are written on the legislation. Whether you are building a residential property or a hotel, there are design specifications that are mandated by law. In this region however, property developers keep the sustainability solutions in check but it is not necessarily followed. I’m sure that will change in the coming years, but right now here in this region there’s still no written legislation that serves as the core that developers follow,” said Simon Dickason, Regional Manager, Tangram Gulf.

Steven Miller, Vice President for Business Development, Shapoorji, said: “The region definitely follows certain sustainability standards which is often followed by property developers. However, we don’t have benchmarking certifications in place for these standards which begs the question of ‘how far will it go?’ There

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Event review

are architects and engineers who design their projects around these standards but whether the client agrees to those specifications or not is a different story.”

Stuart Harris, Support Services Director, Emrill: “From my personal point of view, it mostly comes down to the money. In the past whenever I approached companies about implementing sustainability systems the initial thing they asked was ‘how much is it going to cost them’ and that is usually the challenge.

Considering the initial expenses that they would have to incur on a sustainable technology solution or system usually influences their decisions. Most of the time they fail to consider the long-term value of investing in these solutions. So if sustainability practices are somehow part of the legislation then that would change things immensely.”

Ivar Krasinski, Design Director, L+B Design Group, thinks otherwise.

According to him a legislation is not entirely necessary to tackle the issues of sustainability. With ample

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communication between architects and other stakeholders of a property being developed goals of sustainability can be achieved with great success.

“I don’t think legislation is the only solution. Just because the standards exists doesn’t mean that they are the right standards for the long-term. I believe that incorporating efficiency in the design is generally the best way.

You can actually have better solutions than what is mandated with proper building design. If there are ways that can significantly impact our designs to make the buildings more efficient then that is something that we are keen to know about.”

Waste-to-energy has quickly emerged as one of the most attractive sustainability options for the UAE, given its cost competitiveness and ability to ease the UAE’s pressing waste disposal challenges. Food waste makes up to 38 per cent of Dubai’s total waste and is known to have a lot of embedded energy in it. Putting the spotlight on this subcategory that comprises a significant proportion of waste in the Emirate, the discussion steers to the initiatives being implemented to reduce and make good use of food waste.

Eng. Mohammad Jarar, Compost Plant Manager, Tadweer, highlighted the work that they do to optimise the increase of food waste in landfills. “Out of the 1000 tonnes of waste we receive a day 300 tonnes of that is food waste.

What we do is convert that waste to compost which can be transformed

to energy. Quite frankly is not an easy job and is very costly. Being a privately owned company we often face issues when it comes to expenses since production costs are high while the demand for that compost product is low. We have been working on a proposal that entails converting 400 tonnes of food waste into biogas which can support around six megawatts of electricity per hour. We are now trying to get the municipality on board with this project and have part of it subsidised by the government.

We also endeavour to establish a waste management and sustainability standard that is suitable for the GCC region in the near future. What works in the US or in Europe does not necessarily work here in this region because of various factors such as the weather conditions.”

Joe Ferrara, Vice President International, InSinkErator, said: “We educate people in selling our innovations via food service consultants and they demonstrate the benefits of our products for commercial kitchens. We also participate in various trade shows and exhibit our latest products and that’s how we spread awareness on food waste management. 70 years ago when we created food waste disposers we initially did it for two main reasons which are hygiene for the kitchen and the convenience for the users. When issues on environment came to light we did a lot of research and came

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Event review

What a waste!

1.3 billion tonnes of food is wasted every year

198 million hectares of land are used to produce food that is lost or wasted each year — the size of Mexico.

5,600 megatonnes of greenhouse gases are associated with producing food that is ultimately lost or wasted.

250 kilograms of food is discarded on average by individuals annually in the Middle East and North Africa region at a cost of over USD 60 billion

39%

38%

of the 1.1 million tonnes of municipal waste generated in Abu Dhabi each year is leftover food discarded by residents

of food is wasted every day in Dubai, which goes up to 55% during Ramadan.

Sources: United Nations’ Food and Agriculture Organisation (FAO)| Abu Dhabi Municipality| Dubai Municipality| World Resources Institute|

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up with ways on how we can fit our product to this environmental story.

We can help divert food waste away from landfill and harvest the energy embedded in food waste. We don’t see ourselves as the solution to these environmental dilemmas but we are part of the solution in the management of food waste.”

As a thriving metropolis Dubai has undergone several transformations turning the city into an urbanised investment hub. The glamorous skyline of the city glitter with hotel buildings and high-rises. There is no doubt that the hospitality sector plays a key role in the development of Dubai. Entities such as the Jumeirah Group proved to be keen investors on best practices relevant to sustainability and food waste management within their organisation. Elaborating on this further Sarah Saha, HSE Manager, Jumeirah Group, underlined different incentives that they take on as a key player in the industry. “We believe sustainability is something that anyone and everyone should be involved in. Within the Group we engage with all our stakeholders whether it be suppliers, colleagues or guests and we get them on board with the initiatives that we have. These include practices like recycling and portion-control. As an example, Jumeirah as a luxury brand, our buffet food stations may appear to have large quantities of food but in reality it is just a matter of presentation that they seem that way and it is continually being replenished. For food waste management, we do have facilities like food composter machines.

We also implement a system that automatically reduce the amount of food and organic wastes. Apart from that we also have energy saving protocols that we administer in our building management systems.”

Reiterating on the leading significance of the hospitality industry in the waste management scenario, Sandrine Le Biavant, Director of

Consultancy, Farnek said: “The more sustainability is embedded in the hotel chains the more it cultivates passion that can actually create a culture within the organisation. I can see more and more chefs, and people in F&B at hotels making sure that they review their menus and look at ways to minimise the amount of food wastage when cooking and also save water and energy when preparing food. That is a very ideal way of changing the culture in the industry, but that would require the re-engineering of the processes in the hospitality sector.”

As the challenges and opportunities has been recognised, the discussions leaned towards identifying the next steps moving forward. The panelists were unanimous in saying that the way to progress sustainability and improve the waste management industry is to increase educational initiatives and awareness across the UAE. Public and private sector liaisons is still not in an optimum level but with the upcoming Expo 2020 serves as a great motivation to boost the cooperation of the two.

People are also increasingly becoming more mindful of their responsibilities when it comes to the environment.

Mohamed Karam, Business Development Manager, Middle East and Africa, InsinkErator: “Moving forward I think the best step to take is educate people on a personal level and get them interested on the importance of proper waste disposal. Then we can speak with the developers and get them on board.

Then have a dialogue with government entities and come up with a solution that can be implemented in this market. We can also adapt the programmes that we have in other markets and make them suitable for this region. Finally, we are always open to suggestions may it be from operators, developers, residents or other stakeholders.”

For an online version, please visit: www.tradeandexportme.com/2014/12/ the-war-on-waste/

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Don’t discover it’s counterfeit toner after it’s too late Original HP Toner works first time every time,1 unlike cheap toners which fail over half of the people who try it.2 NonHP toner can compromise your printer’s performance to give you streaked, blotchy or faded prints. Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100% of the time.1

1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe, Middle East and Africa for the HP LaserJet P1505 and P4015 printers, HP 36A and 64A. For details, see www.qualitylogic.com/EMEAmonotonertest.pdf. 2 From a 2012 EMEA Lyra Research study, commissioned by HP. Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges, of whom 552 experienced problems with non-HP cartridges.

© 2014 Hewlett-Packard Development Company, L.P.

TECH TRENDS

Apps to supercharge your SME , Rushika Bhatia s view...

BillMinder BillMinder lets you organise all your bills in one place. It offers a handy bill reminder alert every time a bill is due so that you never miss a deadline! What’s particularly interesting about this app is that it allows you to create reports of your expenses, in the forms of charts and graphs. It also offers tips on how to cut down expenses and increase quick savings.

For business owners, the app’s multi-user feature is quite attractive.

This means that all business partners can be synced to the app and get regular notifications on business-related expenses.

Other noteworthy features of the app include: AutoPay Bills, Automatic Backup and Export to PDF.

Available on: iOS and Android Cost: AED 10.98

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www.smeadvisor.com

TECH TRENDS

TripIt Travel Organiser

Available on: Android and iOS Cost: Free

For business owners who are frequently on-the-go, TripIt proves to be quite useful.

The app links to your Gmail or Google Apps account and automatically picks up every confirmation number that comes into your inbox. Alternatively, you can forward all confirmation e-mails to plans@ tripit.com and the app does it for you. The confirmation code could be of any flight, hotel, car rental or dinner reservations you’ve made. The app organises all this information into a detailed itinerary. It also syncs all the details in your itinerary to your device’s calendar which will enable you to easily share it with your friends, family and colleagues.

TripIt takes things one step further by also providing users with maps, directions and weather conditions of destinations on your itinerary – helping you stay fully prepared for your travels!

SignEasy If your business requires you to be out and about, but you still need to frequently stop by at your office to sign documents, SignEasy can help you. This fantastic app allows you to sign and complete documents using your smartphone or tablet. You can import a document very easily from Dropbox, Evernote, or from your e-mail account and then make the necessary signatures, adding a timestamp, date, or any other information needed to finalise the document. Once done, you can e-mail the signed document or save it to your sharing service. As simple as that!

Available on: Android and iOS Cost: Free

www.smeadvisor.com

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TECH TRENDS

RTA Smart Parking This app allows for parking payment through mPay, the motorist will be charged an additional fee of AED 0.30 for paying for parking through SMS. The app is under continual development. RTA officials have bigger plans for this app, adding features such as the vacant spot identification, leading the motorist directly to the nearest empty spot on in any paid parking area in the Emirate.

Available on: Android and iOS platforms Cost: Free

dget Hot Gtahe of h!

Mont

The S Pen

The S Pen, which has been enhanced for the new Galaxy Note 4, not only allows for more precise input than fingers alone, but the ‘Air Command’ function opens four different shortcuts instantly. By selecting ’Action Memo,’ you can make calls, send messages or emails, or perform any number of key functions on apps with the S Pen. The new ‘Smart Select feature,’ which is only available on the S Pen, enables users to freely select the desired section of the screen, then copy, save, and store content from a wide range of sources with ease. To select and share pictures on your screen, just select ‘Image Clip’ and draw an area around the image you want to send.

You can also capture pictures or text-based notes with ‘Photo Note’ and quickly convert them from analog to digital notes. When you’re short on time, this can be a lifesaver, letting you scribble quickly and easily, and storing instantly. With double the sensitivity, speed, tilt and rotation of previous versions, the S Pen produces a smoother, more natural effect, making it a useful feature on-the-go.

Add to this ‘Screen Write,’ which allows users to take screenshots and add memos to them, and you can edit notes, change colours and keep track of everything at a moment’s notice.

For an online version, please visit: www.smeadvisor.com/2014/12/apps-tosupercharge-your-sme/

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TECH TRENDS

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