SME Advisor Middle East - November 2012

ADCB BUSINESSEDGE – Cutting edge financial solutions for Small and Medium Enterprises

EXCLUSIVE TELECOM PARTNER

INSURANCE PARTNER

Issue 84 november 2012 WWW.SMEADVISOR.COM

presents

Nominate now!

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

Brand strategy

Falafel gone global

Insights for looking beyond your logo to the reputation of your business

We talk to the men behind Just Falafel’s journey to the top

Logistics boom New surveys suggest robust growth across the region

Investment 101 An overview of the rules and regulations of setting up a business in Germany

Corporate veil

We break down this legal term and its importance for protecting shareholders

SMEs are fast adopting reinforced security against cyber attacks PUBLICATION LICENSED BY IMPZ

Too soon to speak?

O

ver the course of the past two quarters there have been murmurings of recovery, returned stability and growth. It is true; the markets in the region are beginning to show a much healthier financial complexion. So, should we begin to believe that the UAE and its neighbouring states are out of the red and back into the green?

Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL Senior Editor Mike Byrne mikeb@cpidubai.com +971 4 440 9105 Sub Editor Joumana Saad joumana@cpidubai.com +971 4 440 9115 Contributing Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 4 440 9133 ADVERTISING Commercial Director Chris Stevenson chris@cpidubai.com +971 4 440 9138 Business Development Manager Pankaj Sharma pankaj@cpidubai.com +971 4 440 9120 PRODUCTION AND DESIGN Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Design Director Ruth Sheehy ruth@cpidubai.com Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9107 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 Photographer Jay Colina jay@cpidubai.com +971 4 440 9141 DIGITAL SERVICES www.smeadvisor.com Digital Services Manager Tristan Troy Maagma Web Developer Abey Mascreen online@cpidubai.com +971 4 440 9100 Published by

1013 Centre Road, New Castle County, Wilmington, Delaware, USA Branch Office PO Box 13700, Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

4

November 2012

SME ADVISOR Middle East

There is a common phrase that we should all remember during these recovery times – fool me once, shame on you..fool me twice, shame on me. If indeed we are on the road to recovery and on the way to levels of prosperity experienced pre-2009, then such recuperation should be cradled delicately and not rushed.

Systems must be put in place that were previously absent; checks and balances must be present to stop another systematic dive into the financial abyss. Most importantly, our overall attitude and perceptive approach must change.

SMEs are the cogs that peddle the economies of most developed regions – this is despite a widely recognised fact that banks in those regions are, and always have been, rather reluctant to grant financial aid to startups. SMEs in those regions have a much larger pool of alternative investors to seek out, yet lessons can be learned from these bustling SME markets. If the business idea is solid and if the opportunity for a startup to mature and grow is tangible, then investment will be forthcoming.

SMEs that require further funds to expand, must do so with caution. Yes the economies here may be beginning to raise their head up over the water, but there is still a long way to go.

If I were to select one word that every SME should keep at the forefront of their decision making, it would be sustainability. If the region is to transform its economies to SME based and away from oil and gas based, then the long term sustainability of both existing, and new SMEs, must be paramount. If you are thinking of expanding your business, make sure it is sustainable growth. If you are speculating in order to accumulate, don’t assume it will reap dividends – these were the mistakes of the past and cannot be revisited again.

This month’s edition of the magazine brings you a selection of articles that relate to sustainability – regular columnist Dr. Ashraf Mahate discusses the necessity of customer satisfaction, which is an absolute if you are to retain customers and clients, and secure continued growth. John Lincoln, who has just recently released a book detailing business survival techniques (more details on page 16), this month writes about looking beyond your logo and spending more time on quality and reputation to create sustainable growth.

Our business pinup this month is Just Falafel (pages 44 – 46). It’s truly an all inspiring story of a startup that planned carefully, developed slowly and waited for the right opportunity to grow. One of the key talking points was their insistence on implementing corporate governance. Indeed, a lot of the success stories we have featured this year have all reiterated the theme of properly introducing the requisite checks and balances to ensure long term survival. Read on for lessons to be learned.

On a final note, we are now accepting registrations for the SME Advisor Stars of Business Summit, which is being held 5th December (http://www.smeadvisor.com/awards2012/register/). The event is free to register and free to attend for qualified C-level management and business owners and it promises to be a day packed with the region’s best panel speakers, offering their insights and addressing your concerns. All details can be found at http://www.smeadvisor.com/awards2012/summit.php. We look forward to seeing you all there.

Until next month...

Mike Byrne Senior Editor Talk to us: E-mail: mike@cpidubai.com

Twitter: @SMEadvisorME

Facebook: www.facebook.com/SMEadvisor

LinkedIn group: www.tinyurl.com/smeadvisorme

EQUIP YOUR BUSINESS FOR SUCCESS

ADCB BUSINESSEDGE PROFESSIONAL EQUIPMENT LOAN To ensure the future success of your business, you need most up-to-date office and printing equipment.

The BusinessEdge Professional Equipment Loan is a unique facility that will help you invest in world-class equipment, to ensure that your business stays ahead of the competition.

Key features: • Up to 80% funding available at competitive rates • Funding available across wide range of brands and equipment • Minimal documentation requirements and quick approval • Shari’ah Compliant products also available • ‘Loanshield’ and Equipment Insurance available For more information on ADCB BusinessEdge Professional Equipment Loan, please SMS PEL to 2626 or visit www.adcb.com Terms and Conditions apply. Credit at sole discretion of the Bank.

Contents Issue 84 November 2012

Trade

20 | Word is bond There is no substitute for strong customer satisfaction says Dubai Exports’ Dr. Ashraf Mahate.

22 | Investing in Germany Aparna Shivpuri Arya gives us an overview of how to go about setting up a business in Germany, and the rules and regulations to be aware of.

36

BANKING FOR BUSINESS

26 | A helping hand

We look at the role awards play in boosting an SME’s credibility and bankability.

MANAGEMENT

28 | Brand strategy Companies need to look beyond the logo and pay more attention to value and reputation when building up their brands, says du’s John Lincoln.

OPPORTUNITIES

32 | Digital content

Enemy at the gates SMEs are fast adopting reinforced security against cyber attacks

EDITORIAL BOARD 08 | Introduction

legal

Shoptalk

Ahmed Ibrahim of Al Tamimi & Co. breaks down this business term and its importance in protecting shareholders of a company.

SME about town

16 | Events

A round-up of the key events being attended

by SME leaders in the UAE.

CORPORATE LIFESTYLE

18 | Executive trends

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

SME ADVISOR Middle East

Joumana Saad speaks with Symantec’s Tom Powledge about changing attitudes on risk awareness and the company’s renewed focus on the SME segment.

40 | The corporate veil

A quick look at news and events that will impact SMEs in this region.

November 2012

36 | Selling security

We present the SME Advisor Editorial Board for 2012.

10 | Trends and Updates

6

With a clear lack of Arabic eContent, media and telecom players are moving fast to develop new channels and reach this vast group of consumers.

BUSINESS PIN UP

44 | Just Falafel

CEO Fadi Malas, and Co-founder Mohamad Bitar talk about the company’s fast expansion and journey to the top.

INDUSTRY WATCH

48 | IT spending

A recent study by Dubai Chamber of Commerce and Industry forecasts the Middle East’s IT services market to reach USD 5.2 billion by 2015.

22

20

50 | Logtistics boom

58 | Top trends

The UAE logistics market is on track to see robust growth, according to recent market estimates.

We bring you an overview of the top trends, announcements and discussions that took place during GITEX Technology Week 2012.

52 | Unleashing potential Booz & Company’s Third Billion Index identifies economic progress and the biggest challenges for working women in the MENA region.

GITEX

44

TECHNOLOGY FOR BUSINESS

60 | Tech news

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

Sign off

54 | Standing out

70 | What’s next?

Joumana Saad speaks to a few companies about the value and benefits they’ve experienced while exhibiting at the new SME Zone.

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

54

52

SME ADVISOR Middle East

November 2012

7

EDITORIAL BOARD 2012

SME ADVISOR

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

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

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

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

8

July 2012 2012 SME ADVISOR Middle Middle East East November SME ADVISOR

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

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

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

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

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

Alexander Blass

John Lincoln

President and CEO, Alexander Blass International

Vice President, Enterprise Marketing, du

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

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

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

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

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

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

Ghada Audi

Abdulmuttalib Al Hashimi

Head Of Disputes Resolution, Fichte & Co

Founder and Managing Director, Next Level

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

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

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

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

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

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

SME ADVISOR East July SME ADVISOR Middle Middle East November

2012

9

shoptalk UAE

UAE ups ranking in Doing Business Report

T

he UAE improved its ranking in the World bank’s Doing Business Report 2013 to 26 among 183 countries, from 33 in 2012, and stood second behind Saudi Arabia in the region. The UAE was also ranked 22 globally, compared to 46 in 2012, and first in the Arab world in ease of starting a business in 2013.

Moving higher up in the rankings marks the successful outcome of the procedures being put in place by the UAE to facilitate doing business and enhance competitiveness. The World Bank has adopted the business registration and licensing procedures in Dubai as the standard for the ease of starting a business in the UAE and the Department of Economic Development in Dubai (DED) applies best practices to build on those procedures.

The Doing Business Report relies on ten key indicators including the ease of starting a business. Business startup in Dubai has witnessed steady growth during the past consecutive two years due to the various landmark initiatives progressively being launched by the DED. The departments initiatives are designed and implemented as per the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE vice President and Prime Minister and Ruler of Dubai, to provide an ideal climate conducive for investment and business in line with international standards and in a way that enhances economic growth and the global position of Dubai.

A key initiative of the DED in this regard was automating the traditional business registration process to by 95%, and integrating it with the electronic platforms of the federal and local government concerned to reduce time and effort for investors and business owners.

The DED has also strengthened its co-operation with the private sector through outsourcing the services of the Business Registration & Licensing Sector (BRL) to selected law firms and private companies capable of providing such services to customers over extended hours.

His Excellency Sami Al Qamzi, Director General of the DED, said: “I thank His Highness Sheikh Mohammed Bin Rashid Al Maktoum for his trust in the DED and his directives to enhance the business environment in Dubai. The BRL is one of the main sectors in DED that provides

varied services for the business community, and it actively contributes to enhancing the ease of starting a business in coordination with the Emirates Competitiveness Council and the authorities confirmed in Dubai.”

The business ranking also comes at a time when a team, headed by Mohammed Shael, CEO of Business Registration & Licensing Sector in the DED, is at the World Bank headquarters in New York, to update them on the latest improvements implements by Dubai to enhance the ease of doing business.

Recently, BRL launched the first beta version application of its kind in the world to manage its services through SmartPhones, iPhones and iPads. The services include renewal and registration of companies, trade name reservation, renewal of trade names, initial approval of licences, renewal of licences, payment of licence fees and fines, as well as company lookup (search for existing companies operating in Dubai and gain information on their business activities).

Shael said: “The Department of Economic Development is always keen to update the World Bank on the results achieved by the BRL sector, as well as share our knowledge and expertise with government entities and organisations concerned with business registration within the region and worldwide. Our objective is to highlight the flexibility we can offer to investors and business owners in obtaining licenses and doing business.”

The BRL Sector is keen to keep up with all that is new in developing and providing value-added services to customers, which helps to reach its primary goal of being the best business destination globally.

Dubai Chamber hosts trade roundtable As part of efforts to increase cooperation between Dubai’s public and private sectors, Dubai Chamber of Commerce and Industry hosted a roundtable discussion for the transport and logistics sectors at its head office.

The roundtable discussion examined some of the current challenges facing the sectors, including the need for more regulation regarding land transport, insurance in the logistics sector, the development of roads across the UAE and obstacles to bilateral and cross border trade.

10

November 2012

SME ADVISOR Middle East

Representatives of the trade and logistics sectors met with Ali Ibrahim Mohammad, Representative of the Dubai Government’s Economic Development Committee, to discuss some of the challenges they are facing.

Leading the meeting, Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber, stressed the importance of the trade and logistics sectors for Dubai’s economy.

He said: “Dubai Chamber is aiming to develop the trade and

logistics sectors, as these are pillars of the economy. These sectors are main drivers of the country’s economy and this is why we are examining the current challenges and issues in order to improve operating conditions for businesses in Dubai.”

He added: “Dubai’s trade sector is performing well this year, with our members’ exports and re-exports reaching AED 181 billion during the first eight months of the year. This is a new record high and one that demonstrates that trade continues to lead the economy.”

“Dubai’s logistics sector is equipped with some of the best facilities in the world, like Al Maktoum International Airport and Jebel Ali Port, which is ranked among the top ten container ports worldwide,” he said.

“However, in order for Dubai’s trade and logistics sectors to remain ahead of global competitors, we must remove obstacles to business, and the roundtable discussion was the ideal platform for us to address current challenges,” he added.

UAE strengthens trade ties with South America

L - R: Dr. Ahmed Saeed Bin Hazim, Director General of Dubai Courts and HE Sami Al Qamzi, Director General, DED

UAE

Improving litigation systems

T

he Department of Economic Development (DED) in Dubai and Dubai Courts (DC) have signed a partnership agreement to apply the chosen domicile registration system. The initiative will contribute to improve government and judiciary services, and facilitate and accelerate the litigation process, as well as implementation of judicial rulings.

The chosen domicile in brief is an appointed legal entity to receive official documents (such as legal notices) for a company or a person who is a party in a legal action.

Dr. Ahmed Saeed Bin Hazim, Director General of Dubai Courts, said: “This agreement reflects the growing cooperation between government agencies in Dubai and Dubai Courts’ strategy for enhanced services and the application of best practices in litigation processes.”

He added that the UAE laws have provisions for appointing a chosen domicile on behalf of the client to receive notifications. For example, Article 84 of the Civil Transactions Law No. 5 of 1985 states that a domicile may be taken for the implementation of a specific legal action including forced execution procedures. The chosen domicile may only be proven in writing.

“Dubai Courts and the DED will coordinate to develop the standards and mechanisms for implementing the chosen domicile registration and constitute a working group to follow

up and ensure that the system achieves the desired goals,” added Hazim.

His Excellency Sami Al Qamzi, Director General of the DED said that the new service will be provided

by Emcredit of the DED. “Emcredit, through its dealings with commercial banks, concluded that there is a real need to provide services that will reflect positively on banks in terms of reducing litigation procedures as well as material cost, and ensuring rapid collection of amounts and obligations, in addition to reducing financial burden and maintaining updated data on customers,” he added.

“The chosen domicile system is already applied in different countries and by some banks in the UAE for companies. It offers several benefits to individuals. Identifying a location for receipt of documents confidentially enables them to move from one location to another without having to update the authorities concerned, move about without the risks of any legal action being taken without their knowledge, and avoid the embarrassment of receiving legal notices in front of family members or in the workplace,” added Al Qamzi.

Emcredit, on receipt of notices from courts or other entities, will contact the individual concerned, send a text message and an email (if there is any), as well as deliver the notice through registered post to the address recorded with the company.

Dubai Exports, the export promotion agency of the Department of Economic Development, led a delegation of flagship UAE companies and potential exporters to the III ASPA CEO Summit, held in Lima, from Peru on 1st to 2nd October 2012.

Underlining the growing interest among UAE firms in exporting their products and services to South America, all UAE companies that participated in previous Dubai Exports missions to South America once again joined the Dubai Exports delegation.

“South America is a major target for UAE exporters since the continent has some of the most promising and fastest growing economies today. Recent trade missions led by Dubai Exports have helped local firms to build bridges with governments, trade promotion bodies and businesses across key economies in South America, including Argentina, Brazil and Peru,” said Engineer Saad Al Awadi, Chief Executive Officer of Dubai Exports.

“Our focus is on enabling companies in Dubai to realise market opportunities and export their capabilities. Dubai, with its advanced infrastructure and diversified economic activity, has greater efficiencies in supplying products and services to different industry sectors and communities worldwide,” added Al Awadi.

Local companies that attended the Peru summit in the past have been able to generate a number of business deals and promising leads from South America. In 2011, UAE exports to Peru alone reached nearly AED 30 million, up 29.62% from the previous year. UAE exports to some other South American countries showed 170% growth in 2011.

With a rising number of trade and investment promotion agencies from South America stepping up their presence in the UAE and Dubai bilateral trade is estimated to expand substantially.

The summit brought together businessmen and exporters from Dubai and South America across a series of matchmaking programmes and B2B meetings to exchange views on partnerships in business and investment. Besides connecting local businesses to potential customers in South America, Dubai Exports also highlighted the strengths of Dubai as a source market and hub for exports and re-exports to strategic regions at the summit.

The summit was organised by the Ministry of Foreign Affairs of Peru and COMEXPERU (Trading Society of Peru), with the support of the Private Investment Promotion Agency of Peru (PROINVERSION) and the Peru Export and Tourism Promotion Board (PROMPERU).

SME ADVISOR Middle East

November 2012

11

shoptalk

QATAR

Empowering women in business

T

he Qatari Business Women Association, in collaboration with Interactive Business Network (IBN), wrapped up the third annual Qatar International Businesswomen Forum that was held on 15th and 16th October in Doha.

“The forum was incredibly successful, and has rapidly gained a unique status as a major annual event in Qatar and

the region, whether in terms of the size and level of attendance, or the relevance and rich nature of its topics and debates, said Raed Chehaib, CEO, Interactive Business Network-Qatar.

At the conclusion of the forum Aisha Alfardan, Vice Chairwoman of the Qatari Businesswomen Association summarised the key recommendations which came out of the event, which focused

on extending the working domains for women including the energy sector, and providing more opportunities for them to be involved in different areas, according to United Nations promises of equality. Alfaradan also emphasised the importance of training in empowering and developing the growth of small companies.

This year, the forum was a major media event and bigger, better and more influential than the last two years.

The forum has attracted a roster of high-calibre speakers, reflecting the importance of the event which has built on the successes of the preceding Forums in 2010 and 2011. In addition to the keynote speakers, VIP attendees and distinguished businesswomen and businessmen, more than 800 delegates took part in QIBF 2012.

Delegates included Raed Chehaib, CEO, Interactive Business Network, Qatar; Wael Sawan, Executive Vice President and Country Chairman for Qatar Shell in Qatar; Barton Cahir, President and General Manager of Exxon Mobil , Qatar, and HE

Yousef Hussain Kamal, Minister of Economy and Finance in Qatar.

Claire Harris, Qatar Shell’s Vice President of Gas Development, delivered a presentation at the session entitled Is ‘Having it All’ Possible for Women?, to address whether businesswomen can have it all by combining career, marriage, children, success and happiness. She shared her personal experience working at Shell and managing a successful career in the oil and gas industry, being a role model for young women in the organisation, in addition to balancing her career with being a mother.

Other sessions held at the forum focused on challenges facing businesswomen in light of economic realities and prospects, as well as key obstacles faced by today’s women entrepreneurs.

Indicative of the Forum’s growing importance and relevance, the third edition of QIBF has attracted sponsorship from 26 leading companies, banks, cultural and social institutions, and media companies operating in Qatar, and throughout the region.

Qatar supports new World Trade Agenda Qatar Chamber, host of the upcoming ICC WCF Eighth World Chambers Congress, has announced the launch of a global initiative aimed at bringing the world together to shape a new trade agreement for the 21st Century.

The ICC Business World Trade Agenda, also known as Beyond Doha, picks up where the Doha Round stalled and injects a new vigor in making globalisation an inclusive process.

“Qatar Chamber, together with the International Chamber of Commerce (ICC), is playing a pivotal role in ensuring that business and trade are back on the international agenda as tools of global economic growth.

As economies around the world struggle to cope with emerging challenges, the ICC Business World Trade Agenda is a remarkable new effort to advance global trade negotiations,” said Qatar Chamber and ICC Qatar Chairman, HE Sheikh Khalifa bin Jassim bin Mohammed Al Thani.

“We must work together to define multilateral trade negotiation priorities for business and to help governments set a trade

12

November 2012

SME ADVISOR Middle East

policy agenda that stimulates economies and creates jobs. After all, we have a shared destiny,” added Sheikh Khalifa.

Launched by ICC in December 2011 at the World Trade Organisation (WTO) Ministerial Conference in Geneva as an answer to an appeal from G20 leaders for new approaches to trade negotiations, the ICC Business World Trade Agenda includes a call on governments to conclude a trade facilitation agreement, advance the multilateral process under the World Trade Organisation (WTO) framework, liberalise trade in services, lower barriers to trade in information technology products and services and work towards a multilateral framework on investment.

“We are incredibly proud of associating and supporting this latest initiative of the International Chamber of Commerce for three years and look forward to it affecting positive change,” said Sheikh Khalifa.

The World Trade Organisation is understood to support ICC’s trade agenda, and global business will continue to provide input to governments in the lead up to the December

2013 Ninth WTO Ministerial Conference in Bali, Indonesia. A WTO agreement on trade facilitation is expected to fuel gains of at least USD 130 billion per year worldwide, with most of the gains benefitting developing countries.

Since the launch of the Agenda, ICC has been mobilising international business, representing SMEs that produce the goods and services traded daily throughout the world, to define a practical and forward-looking multilateral agenda, through a series of consultations around the world for regional inputs. Some of these include a planned session in Doha in November ahead of the WTA Business Summit to be hosted by Qatar Chamber on the sidelines of the biennial ICC World Chambers Federation (WCF) Eighth World Chambers Congress on 22nd April 2013.

Being held in the Middle East for the first time and organised by ICC and WCF, the World Chambers Congress will welcome chamber and business leaders from more than 100 countries from 22nd to 25th April 2013 at the Qatar National Convention Centre.

shoptalk JORDAN

Regional startup competition kicks off

BAHRAIN

Bahrain hosts business seminar in Tokyo

A

delegation led by the Central Bank of Bahrain (CBB) and Bahrain’s Economic Development Board (EDB) has arrived in Japan for a series of high level seminars with Japanese business leaders keen to explore investment opportunities in the Kingdom. The delegation includes His Excellency the Governor of the Central Bank of Bahrain; Rasheed Al Maraj, Shaikh Salman bin Isa Al Khalifa, Executive Director of Banking Operations, Central Bank of Bahrain; and Boyd Winton, Director of Financial Services at the Bahrain Economic Development Board.

The roadshow, which continues through 16th October, follows the annual meetings of the International Monetary Fund (IMF) and the World Bank Group, attended by the delegation, as well as high ranking Bahrain officials including HE Shaikh Ahmed bin Mohammed Al Khalifa, Minister of Finance; and Yousif Humood, Assistant Under Secretary of Economic Affairs, Ministry of Finance.

The business seminars will include visits to leading businesses in Tokyo. The visit provides an opportunity to further strengthen economic and trade relations between Bahrain and Japan,

14

November 2012

SME ADVISOR Middle East

who already share a number of commercial agreements and whose strong diplomatic relations are highlighted this year as Bahrain and Japan celebrate 40 years of diplomatic relations.

Bahrain is home to a number of leading Japanese companies including Nomura Securities, Toyota Training Centre, Yokogawa and Daiwa Securities, Bank of TokyoMitsubishi and Yamato Kogyo.

HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain Economic Development Board, said: “Finance is the strongest and most developed sector of Bahrain’s economy, home to more than 400 financial institutions. That these businesses, including those from Japan, are choosing Bahrain as their base for accessing the fast growing Gulf economies and the wider Middle East is testament to the quality of the Central Bank of Bahrain’s regulation, the strength of the local Bahraini workforce, and the Kingdom’s strategic location and transport links to access the trilliondollar Gulf market.”

Japan is currently Bahrain’s fifth largest trading partner. Trade between Bahrain and Japan surged by almost 30% in 2010, and reach USD 1.25 billion compared with USD 961.5 million in 2009.

On October 9th, business leaders, policy makers, students and entrepreneurs from the region gathered for the launch event of the sixth cycle of the MIT Enterprise Forum Arab Startup Competition, in partnership with Abdul Latif Jameel Community Initiatives, in Amman, Jordan. The event included a speech by Hala Fadel, Chair of the MIT Enterprise Forum, and a key note speech delivered by Dr. Tariq Yousef, CEO of Silatech. Also speaking at the event was the Executive Chairman of Oasis 500, Dr. Usama Fayad, and a panel discussion with leading entrepreneurs from the region.

During her speech at this year’s launch event, Fadel introduced the new format of the competition, which has been renamed the MIT Enterprise Forum Arab Startup Competition.

Commenting on the new format, Fadel said, we are proud to be launching a new format for the competition, which we designed after collaborating with the major players of the entrepreneurship ecosystem in the region, in order to ensure that the competition is relevant to this changing ecosystem.

We will be introducing two tracks: Ideas Track and Startups Track, and, most importantly, we have reduced the waiting time for entrepreneurs so that they are informed within three weeks. The new format also allows applicants to have a rolling application, meaning they can continue to reapply while we are still accepting applications, which gives them a higher chance of being accepted and an opportunity to improve their application.”

During his speech, Dr. Yousef focused on the importance of empowering the youth of the region and emphasised that such competitions are what is really needed to enhance the entrepreneurial ecosystem in the Middle East. “Men and women from this region show high interest in starting their own business; however, when it comes to reality, very few of these young men and women are actually capable of starting their own business, and this is where the role of such competitions and initiatives come in. It is this kind of innovation that can work in the region because it can be replicated and has the ability to truly bring about the desired change. If more people could launch similar initiatives, we will be creating the ecosystem that is really needed.” he concluded.

SME About Town

The TECOM SME Builder gathered SME owners and aspiring entrepreneurs who networked with experts from various industries.

Dispelling myths in SME finance

A

lack of financial acumen was identified as a key barrier to entrepreneurial success during the 18th edition of the TECOM SME Builder, organised by Dubai Knowledge Village.

SMEs are often founded and run by skilled and motivated entrepreneurs but limited knowledge of proper financial management is what can make or break a business. Critical concepts and tools that revolve around profitability, cash flows, business value, and budgets are open to misinterpretation. When finance is not understood, the right decisions are not taken, according to Binod Shankar, Managing Director, Genesis Institute.

Shankar’s comments came during his presentation Top Ten Myths in SME Finance.

The event identified practical solutions to

crucial issues faced by SME owners with a view to improving long-term profitability.

According to Shankar, awareness is essential for building a successful business.

His presentation highlighted and dispelled some of the top myths in SME finance, such as business planning is a waste of time, auditing is a luxury, sales is the most important number and SMEs cannot get funding and hence growth is difficult.

The SME Builder session also featured Corrina Cross, Learning and Development Consultant at The People People, a division of Strategy Marketing. Cross gave a presentation titled Mind Your Language... are your words helping or hindering your business?

Elaborating on the impact of language on businesses, Cross said: “The words you use give away more information about yourself than you think. People around you can get

to know what is going on in your head simply by listening to the words you use.

It’s important to read between the lines to learn more about yourself and others.

Controlling your inner voice can help achieve greater success in your business; negative language could impact results.”

The presentations were followed by networking sessions, where attendees had access to a panel of experts from various fields including communications and body language, marketing, branding, customer service, strategy, sales, people development, networking and referrals, innovation, online advertising, finance and talent management.

Branding expert Charmaine D’Souza, Founder and Design Director, AECA, said: “The SME Builder is a fantastic platform for business owners to interact with specialists in varied fields and gain complimentary advice. It was an enriching experience to help business owners understand the value of branding in today’s market and gain solutions to their issues.”

The event was supported by partners including Bayt.com and SME Advisor Middle East.

The TECOM SME Builder is open to SME owners and individuals aiming to launch their own business venture. The quarterly workshops deal with subjects of import for daily operational issues and offering knowledge with potential to be immediately applied to the business environment.

A regional playbook for SMEs Connect The Dots by marketing expert John Lincoln (Vice President for Enterprise Marketing at du), is now available at all major bookstores in the UAE. The book hit the shelves on 5th November after a launch event held at Emirates Golf Club in Dubai.

The launch attracted a number of influential businesses from around the region, with many SMEs placing orders for the publication to distribute to their organisations. John Lincoln opened the book launch with a presentation focusing on key chapters from his book followed by interviews with press, meet and greet with friends and guests from the SME sectors and an official book signing session.

16

November 2012

SME ADVISOR Middle East

Connect The Dots is a playbook for the modern day entrepreneur or SME and an everyday pocket which provides valuable advice and business survival tips. Whether you are young or old, female or male, about to start your own business or merely thinking about starting your own venture, this book will help you plan accordingly. The book also provides a wealth of experience that has been put together by John Lincoln himself.

John Lincoln’s business knowledge spans from a global perspective. An American, who has worked in several countries such as Japan, India, the UK, Malaysia, Thailand, Brazil and the US, John has held senior management positions with global organisations

such as Vodafone, Japan Telecom, Bharti Airtel and AT&T. With diverse and challenging market conditions, John continuously found himself hiring large multicultural teams, and has recorded his observations and applied the thought process in his forthcoming publication stating the obvious failures and success stories.

John noticed that there was a lack of basic industry knowledge and that he wanted to share his experiences by writing this book in the simplest of forms so that all businesses and individuals could connect with it.

“Most people start up their business and projects based on opportunistic decisions as opposed to a strategic decision. They don’t think about sustainability and growth. It’s because of that we see many businesses fail. This analysis got me thinking and led me to decide that I want to share my expertise and knowledge,” says John.

Connect the Dots by John Lincoln is now available at all major book stores including Jashanmal, Books plus, Spinneys, Borders, Kinokuniya and MaGrudys.

The dynamics of family business

L-R: Dahman Al Dahman, Founding Partner, RSM Dahman; Bill Humphreys, Trainer and Consultant, Eureka Financials; Rakesh Pardasani, Partner, RSM Dahman.

F

amily-owned companies make up a big portion of businesses in the region and in UAE. With the second and third generation becomng active in the family businesses, the challenges of governance structure, succession planning and a growing number of family members, are just a few of the many challenges faced

by family business owners. The Managing the Family Enterprise workshops, in partnership with Eureka Financial and Habib Al Mulla Group, were organised to treatise these challenges in the Arab business world.

“We recognise the need for a multi-disciplinary approach and we hear the problems faced by our clients and by family

businesses in the region. We felt a pressing need to address these issues and hence we have brought in Bill Humphreys to present this seminar to the audience in UAE” said Dahman Awadh Dahman, Founding Partner of RSM Dahman.

Addressing some of these issues, Bill Humphreys, a renowned wealth manager, financial trainer and Managing Consultant at Eureka Financial said: “Family businesses are complex systems involving three independent but overlapping sub-systems, family, business & ownership. The family businesses will become increasingly complex over time as the self-interests of the different stakeholders diverge.”

He added “Conflict is inevitable and in fact patterns of conflict are becoming more and more predictable.

Governance systems, planning and transparent communication are essential

tools for any family business looking to endure beyond the first generation.”

Business advisors, in the past, focused on their own specific area of professional expertise; trusts, offshore companies, tax. This approach, in the present businessworld with complex needs and the wide range of self-interests and unprecedented financial times, is unlikely to be successful.

The workshops were attended by leading first and second generation of UAEbased family business owners, many of them SMEs.

From struggle to success As part of the first Starup Grind event in Dubai, the Co-founders of the popular local classifieds website Dubizzle.com were invited to share their success story and advice. The event which was held at MAKE Business Hub, gathered over 100 professionals including many from the SME and startup community, as well as prospective business owners. With a heightened interest in startups and entrepreneurs in Dubai, the first event aimed to garner high interest for monthly series. Dubizzle Co-founders JC Butler and Sim Whatley joined Simon Hudson, Chapter Director for Startup Grind Dubai and Founder of ThinkTank.

The event was set up in the style of a fireside chat, as JC and Sim told their story of how two young friends came up with the idea for Dubizzle, and later began to build up their business on a tight budget. The co-founders shared some of the most important lessons they have learned on their journey, which began in 2005, and also discussed their key strategies as the website began to expand into different markets in the MENA region.

Questions addressed by the audience focused on how the two cofounders were able to invest into their startup at a time when support for entrepreneurial activity in the UAE was not very developed. The two gentleman explained how they were fortunate enough to work with an angel investor, when growing their business, as it allowed them to more control and freedom.

Dubizzle.com started when JC and Sim moved to Dubai from the US and noticed a gap in the market for a classifieds website. Seven years on, the company is now in 14 countries and and focused on developing its business model to fill new market demands. Recently, Dubizzle.com introduced an Arabic interface to reach a much wider audience in the region.

L - R: Dubizzle.com’s Co-founders JC Butler and Sim Whatley share their story during Startup Grind’s first event in Dubai.

“With a great following already and a growing community of entrepreneurs and new startups, Dubai is set to become a main player amongst other well known idea hubs. This was just the beginning of an exciting guest list of speakers that the Startup Grind Dubai chapter can expect to see,” says Simon Hudson, Founder of ThinkTank Middle East, which organises all Startup Grind events in Dubai.

Startup Grind, based out of Silicon Valley, is an international platform for creative ideas and startup development. Founded by some of the world’s most influential entrepreneurs, and with a growing list of chapters around the world, Dubai is the latest addition to the list. ThinkTank Middle East, is a newly-formed organisation designed around the idea of a record label for ideas. Aspiring entrepreneurs are encourage to use ThinkTank’s online platform to submit their business ideas, which are monitored and paired with mentors willing to provide advice and support.

SME ADVISOR Middle East

November 2012

17

CORPORATE LIFESTYLE

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

Amenities galore

The all-new 2013 Lexus ES offers buyers a selection of luxurious options to add to the mix. Among its exclusive touches, the ES Hybrid offers sustainable bamboo accents, including steering-wheel trim that is bowed from a single piece and sanded by hand. It also can come equipped with a panorama glass roof which provides a broad swath of light to rear-seat passengers.

Artistic expression

Seasonal style

Mulberry’s Soft Chocolate Messenger Bag (GBP 595) has been crafted from fine vegetable-dyed leather and has an adjustable canvas strap and fastens with a stylish triple twist lock closure. The piece also features a separate compartment for documents, a mobile phone pocket and two pen slots for extra storage, making it the ultimate day-to-day bag for the discerning modern man and a must-have accessory for autumn or winter.

18

November 2012

SME ADVISOR Middle East

In remembrance of Pablo Picasso, Montblanc is dedicating two special limited editions of fountain pens to this extraordinary painter: the Pablo Picasso Limited Edition 91, and the Pablo Picasso Limited Edition 39. The two share design characteristics, acknowledging his recognition as the co-founder of the Cubist movement.

The comments and sketches on his work Portrait de jeune fille from 1936, mainly inspired the design, while the silhouette of the two fountain pens is based on the shape of the simple pencils to symbolise the simplicity of Picasso himself. The nib engraving is based on the famous drawing Ojo.

Apple’s newest ADDITION

The brand new iPad mini is 7.2mm thick and 23% thinner than the new, fourth-generation iPad, and has been described to be as ”thin as a pencil.” It weighs 0.68 pounds, which is half the weight of the previous iPad. The iPad mini is available in white with silver or black with slate black, much like the iPhone 5. The tablet uses Apple’s dual-core A5 chip and has FaceTime HD front-facing camera and a five megapixel iSight camera on the back.

Watch box

The Camphor Burl 6 Watch Box is made from the finest grained Camphor Burl veneer and finished with 15 coats of high gloss lacquer to give it a rich luxurious look. It has a key lock with two keys. The interior is lined with a soft simulated suede to protect the watches that will be stored inside.

Vintage collection

An entertainment experience

Eros Group has launched the Samsung 75-inch ES9000 LED Smart TV in the UAE. The new ES9000 meets the rising market demand for televisions 60-inches and larger, and delivers a unique design concept with a beautiful rosegold-coloured finish. The model includes the complete suite of Samsung’s Smart TV features including Smart Interaction, Smart Content and Smart Evolution, that were introduced with Samsung’s flagship Smart TVs earlier this year.

US retailer Banana Republic’s highly praised collaboration with Mad Men costume designer Janie Bryant will be back for a Spring 2013 edition. The new limited edition will be available online starting March 1st before hitting select stores. The collection will no doubt be full of 1960s inspired audacious prints, vivid colours and innovative silhouettes that will help channel your inner Don Draper or Joan Holloway.

SME ADVISOR Middle East

November 2012

19

Trade

As good

as your word?

While many companies focus on price competitive tactics, they forget that the real winning strategy is always customer satisfaction, writes Dr. Ashraf Mahate of Dubai Exports.

T

Dr. Ashraf Mahate Dubai Exports

20

November 2012

he strong connection between satisfied customers and sales is not new and has been known for decades. A satisfied customer will not only come back to buy more, but is more likely to be a perfect advert for the firm, and thereby help to further increase the customer base.

What is not known is why many SMEs continue to focus primarily on price and ignore all other factors relating to the customer experience. This is despite the fact that ignoring customer satisfaction, even when offering low, or even the lowest prices, does not compensate for good customer service.

Any downgrades in the customer’s experiences will, in time, lead to a loss of in reputation of the firm and brand.

Once these aspects are diminished, then it is simply a matter of time before the firm loses its customer loyalty and inches closer to the prospect of failure.

The proven lesson in business is that price is important, but customer satisfaction has no substitute. This is more so the case in global markets where the firm tends to compete with domestic producers.

It would be prudent for SMEs to focus on exceeding customer satisfaction through developing wow factors that

SME ADVISOR Middle East

can lead to greater client loyalty. Ideally, the SME needs to develop customer relationships so that they do not ever think of using the services of another firm. At the same time, the customers need to be the ambassadors for the firm, aiding with recruiting new clients and customers.

In the modern Internet age, this has been made much easier with the vast host of discussion sites, blog pages, and of course, social networking. In fact, the Internet has shown that customers are effective in not only discussing their pleasant experiences, but also bad ones. The scores of parallel sites of major international firms is one example of how disgruntled customers can use the power of online to persuade others away from using the services of the firm.

If the goal for the SME is to retain its customers and use them to acquire new ones, then it needs to deliver this factor to every client. One of the simplest ways that an SME can create a wow factor is through under-promising and over-delivering in all aspects of the product and service.

It is better for SMEs to exceed customer expectations rather than disappoint, or lower their experience.

Everyone has experienced the situation where a tradesman makes an appointment and either fails to

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

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

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

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

problems in the light of today’s circumstances.

Nevertheless, SMEs can take simple and cost-free steps to ensure that they have satisfied customers.

First, the SME needs to identify the issues that customers feel most strongly about. Such an understanding of customer sentiments need not come from a large and expensive customer survey, but instead by simply talking to customers at any available opportunity and building up a databank.

Once the key frustrations are known, the company can develop a strategy or plan to ensure that they are minimised, if not totally removed. Of course the SME can also find out what pleases their customers and increase that particular component in their product or service. In some cases, it may be advisable to subtly mention the fact that aspects which annoy the customer have been dealt with professionally.

“

The Internet has shown that customers are effective in not only discussing their pleasant experiences, but also bad ones. The scores of parallel sites of major international firms is one example of how disgruntled customers can use the power of online to persuade others away from using the services of the firm.

“

arrive at the agreed time or not at all, without a telephone call or explanation.

At the same time, there is the example where a firm actually does more than what is requested, or, before the promised time. Both are unexpected experiences; while the first leads us to become annoyed or angry, the second is more pleasant and memorable. In terms of customer loyalty we are more likely to reuse the services of the latter firm as well as recommend it to others.

The basic idea of under-promising and over-delivering is to exploit the fact that customers are positively influenced by an excellent service they did not initially expect. If the customer expects a certain level of service and receives exactly that, then there is no unexpected component.

In other words, there is a huge difference between meeting customer expectations and exceeding them, whereby the latter is more valued. Expectations of a particular service are formed or created by the firm through the promise that they make.

When I order a pizza and the restaurant informs me that they will deliver it within 30 minutes, then that is what I expect. If the pizza arrives exactly 30 minutes later, I am satisfied, or even mildly happy. However, if the pizza were to arrive within 15 minutes, then my satisfaction will be much higher.

The concept of under promising and over delivering is not about making false promises at the start and then bettering them. The concept is about realising and understanding the business and what it takes to make a customer happier. Also, the under-promising and overdelivering concept is not just about doing things quickly, while errors could be made in the process.

Instead, the concept requires that the firm has in place systems and processes, so that the customer receives an excellent product or service. As such, the firm needs to plan its production and service to ensure that it has the necessary resources to deliver to the customer needs.

This implies that the firm is able to understand the needs of the customer and advise them accordingly.

All too often customers may demand a particular good or service without really understanding their own requirements. Under-promising and over-delivering is all about doing a host of little things that the customer does not expect, which together make for a greater experience.

The best part about under-promising and over-delivering is that it costs the SME nothing to implement, yet is extremely effective.

For resource stretched SMEs, the question is how to develop an under-promise and over-deliver strategy? All too often, SMEs are trying to fire fight and deal with yesterday’s

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

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

Secondly, the SME can re-evaluate its own promise to ensure that it is possible to deliver each and every time. In some cases, in order to meet its promise, the SME may need to change its processes so that it does things better. If for whatever reason the promise cannot be met each time, then the SME may need to simply change it.

Finally, there is little point in delivering a product that is faulty or does not work properly. Therefore, SMEs need to ensure that it has appropriate quality control procedures to remove product or service defects.

So, the lesson is quite simple. Under-promising and overdelivering leads to strong customer loyalty, referrals and greater sales. On the other hand, under-delivering simply makes customers angry and disgruntled customers.

Of course, in reality, things go wrong and even the best laid plans can fail. In such circumstances, SMEs need to be honest with the customer and admit to their errors. At the same time, repairing damage through compensating the customer for any inconvenience experience is a must-have policy.

SME ADVISOR Middle East

November 2012

21

TRADE

Investing in

Germany

We give an overview of how to set up a business in this European market and the rules and regulations you need to be aware of.

T

Aparna Shivpuri Arya CPI Business

he United Kingdom, France and Germany did not have to control foreign investment until the Second World War, as they were capital-exporting countries before that. However, when they were faced with the challenge of upsurge in American investment after the Second World War, they used a number of formal and informal mechanisms to ensure that their national interests were not hurt. Formal mechanisms included foreign exchange control and regulations against foreign investment in sensitive sectors like defense or cultural industries. At the informal level, they used mechanisms like the SOEs (smallorder execution systems which were implemented to provide automatic order execution for individual traders with orders less than, or equal to, 1000 shares). They also imposed restrictions on take-over and “undertakings” or “voluntary restrictions” by MNCs in order to restrict foreign investment and impose performance requirements.

Recent changes to foreign investment laws and policies have in some cases, subjected foreign investment to greater scrutiny. Specifically Western countries, as Germany, have changed or considered changing their foreign investment laws, policies or process in the last few years, and many of the changes demonstrate an increased emphasis on national security concerns.

enterprise’s operations. There are several different kinds of foreign direct investment, including the following: 1. Greenfield investments A Greenfield investment is the investment in a physical structure in an area where no corporate facilities previously existed. It normally entails complete ownership and therefore full control over management.

2. Strategic partnerships A strategic partnership is a formal alliance (joint venture, licensing agreement, distributorship, or agency contract) between two commercial enterprises, usually formalised by one or more business contracts, where they mutually participate in certain activities (advertising, branding, product development and so on).

3. Mergers and acquisitions A merger is a business event wherein two or more companies decide to pool their assets to form a single new company. In the course of this transaction, one of the previously existing companies ceases to exist. An acquisition does not necessarily constitute a merger if the pre-existing companies continue to exist. Both of these business transactions can result in a foreign entity gaining a portion of a domestic entity.

Foreign investment regulation

Foreign direct investment is defined as the purchase of real assets abroad for the purpose of acquiring a lasting interest in an enterprise and exerting a degree of influence on that

22

November 2012

SME ADVISOR Middle East

Customs and tariffs

Import duty is stipulated by the Common Customs Tariff (CCT) and import duty tariffs are the same for

The European Customs Union All member states of the European Union (EU), including Germany, form a customs territory (the European Customs Union) where unified customs arrangements apply. Goods imported into the EU are subject to EU-wide import regulations, customs tariffs and customs procedures.

This means that customs duties are only levied when the goods are imported into the EU. Once goods have been imported, no further customs duties must be paid within the customs territory, even if the goods cross internal borders of member states.

Customs procedures Goods in the customs territory of the EU either have the status of community goods (goods manufactured or obtained in the EU or goods released for free circulation) or of non-community goods (all goods which do not comply with the criteria of community goods). Importers may only be in possession of a limited amount of non-community goods, or in some cases none at all, according to the amounts permitted by the customs administration.

Overview of different customs procedures Different customs procedures apply, subject to the reasons why goods are imported. Goods may be imported to be sold, repaired, temporarily stored or used in the production of other products for re-exportation.

In total, the Community Customs Code stipulates eight different customs procedures (including export procedures, which are not detailed here). The intended use of the goods determines which customs procedure is applied.

Customs declaration The presented goods are then declared for a customs procedure. In order for this to happen, a customs declaration must be submitted. This can either be submitted in writing as a customs declaration form (single administrative document) or, electronically via the ATLAS procedure. Information about the procedure can be found at the website of the German Customs Administration.

Declaration formalities must be carried out by a company registered in the EU. Submission of the customs declaration by a representative, such as a forwarding agent, is permitted.

“

Import duty is stipulated by the Common Customs Tariff (CCT) and import duty tariffs are the same for all member states. The applicable tariff rate can be researched at the EU’s TARIC (Integrated Tariff of the European Union) database.

“

all member states. The applicable tariff rate can be researched at the EU’s TARIC (Integrated Tariff of the European Union) database.

The nomenclature of the EU customs tariff is based on the Harmonised Commodity Description and Coding System (HS) of the World Customs Organisation (WCO).

Through the regulations defined in the system, every single commodity can be classified according to the nomenclature and allocated a commodity number (the goods code).

The vast majority of tariff rates are stated as ad valorem values. The basis for their calculation is the customs value of the goods. This is defined in accordance with the GATT (General Agreement on Tariffs and Trade) customs valuation code, the basis for assessment of customs values valid worldwide.

According to this code, the customs value of imported goods is usually the so-called transaction value. In other words, the value of the consignment according to the commercial invoice, not including any adjustments such as transport and insurance costs up to the EU border.

In the case of regular imports, there is also a possibility of simplified customs declarations where certain details can be skipped. These details must then be submitted in the form of a supplementary declaration within a period of 20 days (45 days in the case of maritime transport).

Customs number All companies which submit customs declarations more than three times a year must include a customs number in the respective customs declarations. This number is issued by the customs administration on request and serves as an identification and reference number under which all addressees of consignments and all authorisations issued by the customs administration are gathered.

All companies registered in the EU can apply for certification as an Authorised Economic Operator (AEO) from the respective Head Customs Office.

Customs declaration documentation As well as the customs declaration, a number of other documents usually have to be presented when releasing goods for free circulation: • Declaration of customs value (with value of goods greater than EUR10,000) or with goods valued more than EUR 10,000) • Commercial invoice or proof of value • Transport documents (such as CMR form, airwaybill or bill of lading) Depending on the goods, other documents may also be required, including: • Certificate of origin, declarations of origin and movement certificates (such as in the case of the utilisation of benefits from free trade agreements, preferential agreements, cooperation agreements and association agreements) • Import permits, import licences and surveillance documents • International import permit and delivery verification certificate (such as in the case of goods and technology with strategic importance) Double Tax Agreement

There is a new Double Tax Agreement between Germany and the UAE, which was signed on 1st July, 2010 and came into effect on 14th July, 2011. It applies retroactively from 1st January, 2009.

The most important change is the changeover from the exemption method to the credit method.

• A German company’s subsidiary (branch or representative office) in the UAE is not subject to income tax unless the company belongs to one of the following branches: banks, petroleum and natural gas engineering, petrochemical industry, for which a tax rate of up to 55% applies.

SME ADVISOR Middle East

November 2012

23

TRADE • In Germany, up to 95% of the distribution of profits between a mother company and a daughter company is not subject to taxation.

• Only the distribution of profits to the shareholders of the German parent company is subject to taxation, either within the scope of the partial income method, (Teileinkünfteverfahren) or within the scope of the flat rate withholding tax (Abgeltungssteuer).

• In the UAE, the business premises of a German company (joint-stock company) are not subject to the corporate income tax (Körperschaftssteuer). Contrary to the usual practice, the Double Tax Agreement does not provide for an exemption of the profits out of the foreign business premises. These profits belong to the assessment basis of the German corporate income tax, but do not belong to the assessment basis of the trade tax (Gewerbesteuer) (9 Nr. 3 in conjunction with 21 GEWStG).

“

In short, it means that the previous agreements allow for an exemption from German tax duties if a German company was operating in the UAE. Practically, this insured a German subsidiary had tax free status under UAE law, which the German Government would not interfere with.

The new agreement, however, introduces a system where any paid taxes in the UAE are to be set off against the otherwise payable taxes in Germany.

Given the fact the UAE does not collect either income, or, corporate tax at all, this means that a German company operating in the UAE is now liable for paying taxes in Germany on the full amount of the income or profit they make in the UAE.

In short, it means that, the previous agreement allowed for an exemption from German tax duties if a German company was operating in the UAE. Practically that insured a German subsidiary a tax free status under UAE law that the German Government would not interfere with. The new agreement, however, introduces a system where any paid taxes in the UAE are to be set off against the otherwise payable taxes in Germany.

“

This regulation applies to non-independent companies such as branch or representative offices of German companies, but does not apply to German owned LLC’s set up in Dubai, since they are considered UAE companies.

The new regulations also have an impact on German individuals working in the UAE. If a natural person maintains their place of residence in Germany, they are subject to the German tax law and thus must pay in Germany the due taxation amount on their worldwide income. Since there is no tax liability in the UAE, the allowance of foreign taxes is omitted.

other than the member states of the European Union (EU) and the European Free Trade Association (EFTA), including (Liechtenstein, Iceland, Norway and Switzerland), would need to notify the acquisition of a business manufacturing or developing war weapons armaments or producing crypto systems admitted for the transfer of state secrets, unless the investor directly or indirectly acquires less than 25% of the voting rights. The German government is authorised to restrict or prohibit the acquisition if it would affect significant security interests of the Federal Republic of Germany.

The German Foreign Investment Act was amended in 2009.

Therefore, since 2007, the government may also restrict or prohibit acquisitions by investors from outside the European Union and the EFTA if the acquisition “jeopardises the public order or security” which shall require an “actual and sufficiently serious threat that affects a fundamental interest of the society”.

At the same time, the ECJ has pointed out that purely economic objectives or industrial policy would not qualify to pose a serious threat to the public order and security, and it would therefore not be sufficient to justify any restrictions with regards to the following: • Restructuring of certain sectors • Enhancement of competitiveness of businesses or sectors • Monetary interests of the government including the reduction of public debt • Support and development of capital markets and the desire to enhance individual ownership in stock of listed companies • General modernisation of the economy and the increase of productivity Apart from these guidelines, relevant factors are the person of the acquirer, its home country, its current business and future intentions. It may, for example, be a criterion if the investor’s home country is subject to an embargo or, if the investor in its home country is engaged in the defence industry, even if the proposed investment is in an unrelated sector. Another item to be considered is the competitive situation on the market in which the target business operates. The less competitive, the more likely it is that an investor could influence the supply with the relevant products or services.

In principle, the government has three months from the signing of a binding agreement on the acquisition to inform the acquirer that it wishes to commence investigations, and may within two months from receipt of all relevant information requested from the acquirer prohibit or restrict the transaction.

In parallel, the Foreign Investment Act expressly enables an investor to apply for a clearance certificate by filing a description of the proposed investment, the acquirer and its business. Upon filing, the government has one month to decide on the issuance of such clearance certificate, and it must issue it if the proposed transaction would not threaten the public order or security. Such an instrument provides some compensation for the level of uncertainty that the flexibility of the term “public order and security” involves.

Intellectual property rights laws

Mergers and acquisitions law in Germany

Until 2004, Germany had no special legislation restricting foreign direct investment beyond general restrictions, such as the need for antitrust clearance or regulatory requirements for investments in financial institutions, which equally apply to investors from Germany, the European Union and elsewhere.

In 2004, it was introduced that investors from countries

24

November 2012

SME ADVISOR Middle East

Intellectual property rights enjoy a high level of protection in Germany. For technical and commercial innovations, property rights can be registered in the form of patents, utility models, trademarks and designs. The same conditions apply to foreigners and German nationals when registering property rights. In fact, Germany occupied the top spot in the “intellectual property” category of the study mentioned above.

Competition law

The term competing activity is replaced by the term commercial practices in the new Competition Law, which has been valid in Germany since December 2008. This renaming was necessary because competition should no longer be the only purpose, but also consumer protection as an issue.

The new term covers every activity, default, mode of behaviour or statement, commercial note, including advertising and marketing of tradesmen who are directly responsible for merchandising, sales or delivery of products to consumers.

The German Act against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG) prohibits certain trade practices, which are considered unfair, excluding cartel law and merger control, which are governed by a separate act (Gesetz gegen Wettbewerbsbeschränkungen, GWB). The Act against Unfair Competition has been thoroughly revised with the aim of modernising German law against unfair competition and bringing it into line with developments in EU law.

The stated aims of the revision are to increase consumer protection, to provide greater transparency of the rules relating to unfair competition, particularly for non-lawyers, and to provide more freedom to businesses.

Advertisements with implicitness on the Internet On the Internet, indicating that a legal right is something special of a particular offer will be considered as unfair. This

means that a trader can still indicate the warranty rights, within the context of the general terms and conditions. However, it is forbidden to have a prominent advertisement on the homepage for warranty. If the general terms and conditions mention warranty rights for consumers, it must be correct. If the general terms and conditions are wrong with regard to warranty rights, this is unfair within the meaning of the Unfair Competition Act.

“

When establishing a company, you should remember to protect your company’s intellectual property by means of registration. Conversely, you should ensure that your company and products do not infringe on existing intellectual property rights that have already been established in the German market.

“

Trademarks and patents are well protected in Germany.

When establishing a company, you should remember to protect your company’s intellectual property by means of registration. Conversely, you should ensure that your company and products do not infringe on existing intellectual property rights that have already been established in the German market. A mark can be protected as a trademark by recording it in the register kept at the German Patent and Trade Mark Office (DPMA). As with patents, an application must be filed at the DPMA. Foreigners may register patents subject to exactly the same terms as German nationals (this is also the case with trademarks). However, applicants having neither a domicile nor an establishment in Germany must appoint a patent attorney in Germany as a representative filing the patent application. At present, the fee for trademark registration application and entry in the trademark register is around EUR 300.

Once trademark protection has been obtained, the owner of a trademark has an exclusive right to use the respective trademark. If the trademark has been registered, the owner can indicate this by placing (registered trademark) after the trademark. Protection is valid for a period of ten years and can then be extended for a further ten years.

The right to use a patent or a trademark may be subject to either an exclusive or a general licence. By granting a third party a licence, the owner of a patent or trademark entitles a third party to use or exploit the right in question without ceding ownership. An exclusive licence entitles only the licencee (the person that has been granted the right of usage) to exploit the right, usually within a certain territory. General licensing or non-exclusive licencing enables various licencees to use a right in the same territory at the same time.

Information Referring to the German Remote-Purchase Law, the enhanced UWG (Unfair Competition Act) demands further information obligation. Thus, necessary information for specific offers is the identity and address of the businessman on behalf of whom he is acting. This obligation to disclosure of the persons behind the business goes far beyond the so far demanded indication to agents.

Employment law and visa requirements

It’s also important to note that citizens of non-EU countries generally require a visa to enter and stay in Germany. For short-term stays in Germany (stays not exceeding 90 days per six-month period starting from the inital date of arrival) a Schengen visa is needed which is generally sufficient for most steps required to establish a business in Germany.

If the duration of the stay exceeds 90 days (per sixmonth period) or is a (self-employed or gainful) occupation taken up, all non-EU citizens require a residence permit (Aufenthaltserlaubnis) or settlement permit (Niederlassungserlaubnis). The respective German embassy initially issues a national visa for entry into Germany. The national visa is converted into a residence or settlement permit by the local immigration office (Ausländerbehörde) in Germany.

Visas for employees Employees who are from non-EU countries and who are employed in a new subsidiary company in Germany require a residence permit for the purpose of taking up employment (Aufenthaltserlaubnis für abhängige Beschäftigung) in Germany. The residence permit for the purpose of taking up employment contains both, the permit to stay and the permit to work in Germany. Foreign nationals do not have to apply separately for a work permit. The residence permit for the purpose of taking up employment contains a statement as to whether and to what extent work will be permitted.

As with a residence permit for self-employment, a residence permit is issued to employees for up to three years. As a rule, the residence permit can be extended without any problems.

After five years a permanent settlement permit is issued in most cases.

SME ADVISOR Middle East

November 2012

25

BANKING FOR BUSINESS

L - R: Howard Gaunt, EVP and Head of ADCB’s Corporate and Business Banking Group; Richard Judd, MD, CPI, Ritesh Tilani, CEO, CareZone, and Nilanjan Ray, SVP and Head of ADCB’s Business Banking Division, at the SME Advisor Stars of Business Awards 2011

A helping hand

We take a look at how industry recognition and awards can help boost an SME’s credibility and brand awareness.

A

Joumana Saad CPI Business

26

November 2012

trend that is picking up momentum among businesses is the use of awards and industry recognition to help a business gain a reputation and stand out amongst competitors. In the SME category, there have been a number of initiatives launched in recent years with the intention of providing a platform for recognition, as well as financial and advisory support.

Generating a considerable amount of buzz this year was the Dubai SME 100, which ranked top-performing SMEs in the UAE. The initiative seeks to identify Dubai’s top SMEs that are role models in their respective categories.

More than just a ranking, the objective of Dubai SME 100 is to inspire willing and able SMEs that have the potential to be world-class enterprises, to invest in innovation and people to sustain growth. The ranking also serves as a tool for helping SMEs identify capability gaps for improvement, and attract the attention of investors, which is the real value add of the Dubai SME 100.

Abu Dhabi Commercial Bank (ADCB) was one of the major banks who partnered with Dubai SME for the SME 100 by providing exclusive benefits to the ranked companies, including reduced interest rates, funded

SME ADVISOR Middle East

credit facilities at ADCB’s base rate, priority transaction processing, reduced fees and charges on export transactions, flexible repayment options, as well as access to a complete suite of SME products. Referring to the partnership, HE Abdul Baset Al Janahi, CEO of Dubai SME said: “The support from partners like ADCB is not just about enhancing all manner of financial assistance but non-financial aspects as well, most notably in the development of financial management capabilities.”

“Dubai SME 100 is a very important support mechanism and ADCB is proud to be associated with this initiative which provide due recognition to successful SME’s,” says Nilanjan Ray, SVP and Head of ADCB’s Business Banking Division.

Unlike other rankings, which are based mainly, or purely, on financial indicators, the Dubai SME 100 ranking places a balanced emphasis on financial and nonfinancial dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate excellence. The basic criterion is that the applicant must be an SME based

Prizes offered by ADCB (SME Advisor Stars of Business Awards 2011)

A BusinessEdge Elite Current Account with no minimum balance requirement A BusinessEdge Call Account with no minimum balance requirement Free Corporate Internet banking (both set up fees & maintenance fees waived off) Preferential rates in Forex Dedicated Relationship Manager 50% discount on processing fees on credit facilities taken Preferential tariff on trade facilities Preferential interest rates on loan facilities

Second from right: Sian Rowlands and the My Ex Wardrobe team accept an award at the SME Advisor Stars of Business Awards 2011.

SME’s an ideal opportunity to be recognised by industry peers and experts,” notes Nilanjan.

In addition to such initiatives, ADCB also sponsors the ADCB Ambition Award, which is presented during the Emirates Woman of the Year Awards in November.

Winners of this award receive USD 10,000 from the bank, plus investment and SME advice from the bank’s experts, as well as the opportunity to participate in one of INSEAD’s entrepreneurship electives.

Last year, Sian Rowlands, Co-founder of My Ex Wardrobe, took home the prestigous award and tells us that the achievement was crucial in getting her business idea off the ground. “Winning the ADCB Ambition Award changed our time frames for everything;

“

“

on the official definition of Dubai’s SMEs. In addition, it must have at least three years audited financial statements, and be an independent entity registered in the UAE. Ethos Consultancy is one company who has seen firsthand how industry recognition can translate into added value. The company ranked 25th on the SME 100, and was also named the One to Watch (Best New Business) at the 2010 SME Advisor Stars of Business Awards 2010, as well as Best Consultants in the UAE at the 2011 Awards.

Robert Keay, Managing Director for Ethos Consultancy, says these achievements provided the company with useful tools in marketing to prospective clients. “The SME 100 award has added immense credibility for us within the Dubai market, and we utilise this ranking in all of our presentations and sales material. The ranking also provides an incentive to continually look at our performance and to find ways to improve,” says Robert.

He adds that the association with ADCB as a result of winning “helped greatly and without their commitment to Ethos, we would not have been able to use the award as our platform for progress.” ADCB provided Ethos with growth capital via overdraft facilities, bank guarantees and invoice discounting, which Robert says significantly supported the company’s cash needs.

The SME Advisor Stars of Business Awards is an annual initiative that aims to recognise exceptional SMEs in their respective categories as well as encourage regional business growth and promote best industry practices. Last year, over 3,800 nominations were received and awards were given across 26 categories, spanning industry achievement, business function and SME support partner. There were an additional two Special Mention awards for contribution to the business

The SME 100 award has added immense credibility for us within the Dubai market, and we utilise this ranking in all of our presentations and sales material.

The ranking also provides an incentive to continually look at our performance and to find ways to improve.

Free access to ProTrade

community. Making it as a finalist in any category was an achievement in itself and competition proved even more evident this year as even more nominations were received than in years past.

As a presenting partner for the SME Advisor Stars of Business Awards, ADCB provides the winners with a list of prizes including a BusinessEdge Elite Current Account with no minimum balance requirement, a BusinessEdge Call Account with no minimum balance requirement, free Corporate Internet banking, preferential rates in Forex, a dedicated relationship manager and a 50% discount on processing fees on credit facilities taken, among other benefit. Such incentives would prove to offer SMEs valuable financial support for growing their businesses.

“The Stars of Business Awards has developed into one of the premier awards platforms in this region. It offers

it meant we could start putting all our plans into place much sooner than scheduled. With a large lump sum it allowed us to really get started rather than wait until we had accumulated enough.” Since then, Sian says My Ex Wardrobe has been able to grow steadily and build up its reputation. “Besides the obvious benefit of winning the prize money, it has really given us immeasurable boost. The media coverage alone has been amazing, not to mention the affirmation that our business plan really was worthwhile; as we have put so much time and effort (and money) into this venture.”

This years SME Advisor Stars of Business Awards, taking part on 5th December, promises to be bigger and better than 2011. Close to 4,000 nominations have been received this year, with even more high quality businesses competing for the 24 award categories. For the first time the awards will be held in Abu Dhabi, with the Yas Viceroy selected for the prestigious event.

SME ADVISOR Middle East

November 2012

27

MANAGEMENT

Beyond the logo John Lincoln of du, breaks down the basic elements SMEs incorporate into their branding strategies.

M

John Lincoln du

ost SME owners and investors do not pay enough attention to this critical aspect of their business.

My definition of operations management is that it includes the formulation, design, planning, process mapping, execution and the control of operations to convert all your resources into products, services, and or, goods.

In other words, the operations management is how you execute on your intended business strategy.

Have you ever wondered why some brand names are synonymous to their product or service category? Have you also wondered why some brand names come first in your mind when you are thinking or considering a certain product or service category? If you think of a category ranging in products from copiers to phones, which brand names come first in your mind? Why did that particular brand come to your mind? Is it so because those companies who own their brand name have a purposeful branding strategy? Perhaps they have committed significant resources to ensure that their branding achieves top of mind awareness from their existing and potential customers.

Most SMEs owners or small business managers think of branding as a fluffy, useless stuff, and a sheer waste of time and money. This is a fallacy which must be corrected immediately.

If the strategic intent of a business is to grow and sustain, that business will have to think of branding more seriously than the way it’s being approached. The choice of media and the amount you spend depends on your company’s financial resources. Branding is a lot more than just communicating through different media.

Defining a brand

Whether you know it or not, almost every product, service, business, public personality and company has been branded.

Many small businesses (and large company executives as well) use the terms visual identity, corporate identity,

28

November 2012

SME ADVISOR Middle East

brand identity and branding interchangeably. Branding is a broader marketing effort than visual identity since it often involves naming, communications and advertising and promotion. Many think of a brand as a logo, proprietary name for a product, service, or group. However, in reality, a brand is the sum total of all characteristics and assets of a brand name product, service or group, that differentiates it from the competition, as well as the perception of the brand by the public.

In other words, there are several key components of an overarching branding effort or programme, beginning with a logo and visual identity through interactive experiences, package design, corporate communications, promotional design and advertising.

A brand is the essence of your small business. It encapsulates your core products and services, your reputation and the total experience promise you make to your customers. The brand personifies the perceived value of your propositions versus your competitors. It is the image that you portray to the outside world, not just your customers, but all your stakeholders including your employees, suppliers, partners and funders.

A brand is also the mind share that you occupy in your customers’ minds based on the totality of the experience that they have experienced with your company, across all or any touch points. These touch points are not just the obvious marketing collateral, business cards and press releases. It could range from how they get to know about your business and propositions, to whom, how and where they interacted to buy the products or service to using the product or service and so forth.

In essence, the brand is also the personality and soul of your company, by which your employees are hired to know how your customers perceive you. It is not just the soul and personality, but also your company’s philosophy by which you think, define, prospect, interact and serve your customers..

A brand strategy defines the brands personality and promise.

The brand enables and differentiates your company through your brand positioning.

Your small business brand strategy is the core strategic underpinning of branding, uniting all planning for every visual and verbal application. It defines the brands personality and promise, and also codifies the brand essence of your small business and tactical execution and implementation within your company.

The brand design makes the strategy real and alive and gives brands their distinctive look and feel. The brand strategy will help your small business brand to identify and communicate a core value, quality, or differentiator, that can become the construct or position, for SME brands to own against its competitors.

In other words, the small business brand strategy is how you are formulating, defining, conceiving, creating and positioning your brand in the marketplace to achieve differentiation, relevance, engagement and resonance with your current and potential customers and all your stakeholders.

So, why is a brand strategy for your small business important? First, it is the foundation for building awareness, which helps your customers to spontaneously recall your company or, helps your customers to recognise that you exist. Secondly, a consistent brand strategy will help your business to create a brand in the minds of your customers through your customers’ experiences across all your touch points. The intentional customer experience has to be defined and be consistent for your customers to create your brand in their minds.

Finally, a brand strategy helps your business express its promise in the simplest, most single-minded terms.

For example, the Ritz Carlton is synonymous with excellence in service, just as Mercedes Benz is with high-quality German engineering. However, it is not something that is whimsical as it has to be rooted in a core customer need.

in Now o res b ookst

Connect The Dots, by John Lincoln, is a playbook for the modern day entrepreneur and SME, which provides valuable advice and business survival tips.

Whether you are young or old, female or male, or about to start your own business or merely thinking about starting your own venture, this book will help you plan accordingly.

Image

A consistent branding derived from a deliberate brand strategy will derive a consistent net out-take of your brand for your customers. This image is derived based on the experiences of your products or services and are informed impressions as to how well your small business meets your customers’ expectations. For potential customers, your brand’s image in their minds will be based upon uninformed impressions, attitudes and beliefs.

Positioning

A purposeful brand strategy helps you to have a distinctive position in your market place to enable your customers in your target market to identify and differentiate your small business

“

“

Brand strategy

A brand is the essence of your small business. It encapsulates your core products and services, your reputation and the total experience promise you make to your customers. The brand personifies the perceived value of your propositions, versus your competitors.

brand. Positioning doesn’t just involve the logos or other visual identities alone, but involves leveraging and the careful manipulation of every element of the marketing mix, to deliver a superior and differentiated proposition to your customers.

Personality

Values

Your brand strategy will help your small business customers to attribute or give your brand human personality traits such as fun, warmth, innovative, cool, and so on). This perceived personality of your brand by your customers is how you differentiate yourself in the minds of your customers. Brand personality does not happen overnight.

You, as a small business owner, should have a long-term view as to how you want your brand to be perceived by your customers.

A purposeful brand strategy will help you define and design the code by which your small business brand lives by. The brand values act as a benchmark to hire, measure behaviours and overall performance.

Harmonisation

A purposeful brand strategy will ensure that all your products and services, especially if you have a broad range of services or products, will have a consistent name and visual identity positioned across all the markets that you operate in.

Identity

A purposeful brand strategy will define the outward expression of your small business brand, including your small business name and visual appearance. This is important as the brand’s identity is its fundamental means for your customers to recognise your brand. A consistent visual identity will help your small business brand to differentiate from your competitors.

Architecture

A brand strategy helps your business define its brand architecture. It helps your business determine how it structures and names the brands within its portfolio. This is important for a small business owner or investor having a diverse portfolio of goods, services or businesses.

There are three main types of brand architecture systems. The monolithic system involves the group name being used on all products and services offered by your holding company. The endorsed system links all subbrands to your group brand by means of either a verbal or visual endorsement. When using a freestanding strategy, the group brand operates merely as a holding company, and each product or service is individually branded for its target market.

Associations

A brand strategy encompasses your customers’ feelings, beliefs and knowledge that existing and potential customers

SME ADVISOR Middle East

November 2012

29

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

John has witnessed the early days of telecommunications and foresaw the huge potential of the telecommunications industry

as early as the 1990s, and therefore decided to pursue a Master of Science degree in telecommunications from Golden Gate University, San Francisco, after completing his MBA from the same institution. A transplanted American who has worked in countries such as Japan, India, the UK, Malaysia, Thailand and Brazil, apart from the US, John has a truly global perspective. He has held senior management positions in global companies such as Vodafone, Japan Telecom, Bhar ti Air tel and AT & T and has had the privilege of hiring and managing large multicultural teams and working

in different and very challenging market conditions.

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

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

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

have about your brand. These positive (or negative) associations are derived as the sum total of all their experiences across all touch points. These experiences must be consistent with the brand positioning and the basis of differentiation.

or, just an acronym based on several names or words. In order to make such a name effective, it should no doubt fall into the categories of being distinctve, extendable, memorably, long-lasting, purposeful and legally-owned.

Design development

Commitment

A structured, well-defined and purposeful brand strategy will increase the commitment of your customers to your propositions in the market. If your customers’ commitment to your brand is high, the propensity for repurchase and

“

“

To build loyalty, your customers have to be aware of your brand. To claim top-of-mind awareness, you must differentiate your brand with a distinct visual and verbal identity. Your communications across all touch points has to be relevant to the target market.

reuse is very high. The level of commitment indicates the vulnerability of your SME brand and is a good indicator of the probability of poaching of your customers by your competitors.

Value or equity

Having a purposeful brand strategy will increase the longterm value of your business through the increased brand equity derived from the sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders. This will facilitate personal commitment from you and demand for the brand.

The right name

When it comes to choosing a name for your brand, many factors need to be considered before hand, as the brand name is the main point of reference to your business and is the main verbal marketing tool. You can start by asking what the name means to your employees and customers, what type of spirit or personality could it convey to your stakeholders, how people might react to it, as well as its ability to stand across languages and cultures.

There are several categories of name types that are more or less appropriate for any small business brand.

Some of the most common names chosen by SME owners reflect the founder’s name, describe or explain the product or service, are expressive or invented, symbolic

30

November 2012

SME ADVISOR Middle East

Based on the strategy, name, and construct for your small business brand, the visualisation and composition begins during design development. You will need to consider brand differentiation, brand promise and branding applications and media.

As part of the design solution, your brand’s unique personality is established and communicated through its “look and feel,” and expressed through the particulars of the visualisation and composition, including colour palette, characteristics and qualities of lines, shapes and textures, typeface, as well as any other visual elements. The brand look and feel is a visual attitude that differentiates your small business brand from the competition, making it unique, distinctive, memorable and relevant to its audience. It should define its individual character, and be synonymous with your brand, and should not be in any way be generic, and should definitely not look like your competitors look and feel.

Awareness and loyalty

Your business can build a strong brand if you can build loyalty among your customers. To build loyalty, your customers have to be aware of your brand. To claim topof-mind awareness, you must differentiate your brand with a distinct visual and verbal identity. Your communications across all touch points has to be relevant to the target market.

It will have to define the intentional customer experience across all touch points with a clear understanding of how your customers’ relationship with your brand can develop, from basic awareness to intense loyalty. Identifying where your customers are on this journey to loyalty is a crucial first step toward developing an effective marketing of your small business.

To build a stronger brand, you need to know much more than the size and shape of your market and customer base.

You need to understand how well your brand is performing in terms of winning loyalty. You need to identify and track the competitive strengths and weaknesses that may be helping or hindering your brand in the battle for increased loyalty. In other words, the experience of your customers and all your stakeholders across all touch points is the brand.

It certainly is not just about your logos and collaterals.

OPPORTUNITIES

The Arabic eContent gap Demand for digital content in the Middle East is steadily increasing; however, there still remains a gap with regards to the amount of original Arabic-language content.

A Joumana Saad CPI Business

32

November 2012

ccording to the most recent Arab Media Outlook report, conducted by Deloitte and published

by Dubai Press Club, Arabic content currently makes up only one percent of all online content. One factor contributing to this gap is the fact that the majority of digital content providers in the region are foreign, leaving very little space for local or regional providers of Arabic content looking to reach this vast group of consumers.

Another interesting finding of the report, is the missed opportunity on the part of traditional Arab media in using the Web to actively engage with their audiences and readers. Just as the Arab Spring uncovered many social realities in the region, it also showed how the Arab youth were tuning out traditional media and instead turning to social media websites to communicate and engage with the world around them.

In recent years, there has been a rise in the number of companies formed with a mission to develop unique digital content, aimed to address various market needs. Intigral, founded in 2009, is an end-to-end solution provider focused on delivering digital media content services to regional telecommunication operators. “We founded Intigral with the mission to be a one-stop shop for providing our

SME ADVISOR Middle East

clients with a comprehensive, converged digital content experience. Our role in filling the Arabic eContent gap is to be the conduit between content providers, ISPs and operators and their audiences,” says Karim Daoud, CEO of Intigral. “By providing turn-key solutions, such as localisation, enhancement, digital advertising and content aggregation, that are born from a deep understanding of customers’ desire for enhanced digital solutions, we can provide services directly relevant to the MENA region’s audiences and help bridge that gap,” he adds.

Increasingly, telecom operators in the MENA region are focusing on delivering premium digital content to their users. Intigral specialises in the process of local adaptation by creating personalised digital experiences, spanning across various types of devices like IPTV, OTT, Web and mobile. The company has already experienced huge growth in Saudia Arabia counting its television and mobile content services as the most successful to date.

Karim also noted, that the digital content business was not always this exciting and says: “It was much more scattered a few years ago compared to now. There were many different systems, multiple standards, and very high entry barriers.

Now, anyone can produce an app. The entry barriers have almost disappeared, and the market has become much

“We thought we’d need Dell’s help, but after the demonstration we saw how simple EqualLogic is to use and we set up our storage environment within days.”

Mohamed Raafat Atia Technical Services Manager Digital Solutions Provider

Do more with Dell networking and storage Solutions See how Dell helped Saudi services and consulting company, DSP, build a highly-scalable, reduced server-footprint environment. Enabling support surveillance solutions for three of Saudi Arabia’s largest hotels using Dell PowerEdge servers and EqualLogic storage.

Read the full case study at YourDellSolution.com/me/servers

©2012 Dell Products. Dell, the Dell logo, EqualLogic and PowerEdge are registered or unregistered trade marks of Dell Inc. in the United States and other countries. Intel, the Intel logo, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel Corporation in the U.S. and/or other countries. Other trademarks or trade names may be used in this document to refer to third-party products (such as operating systems and software) included with the products offered by Dell and the entities claiming the marks and names of those products. Dell disclaims proprietary interest in the marks and names of others. Dell Corporation Ltd, Dell House, The Boulevard, Cain Road, Bracknell, Berkshire, RG12 1LF.

OPPORTUNITIES

Zoya Sakr, Co-Founder, 2Pure e-Publishing

more uniform in terms of protocols and standards.” He also explained that as a result of these trends, an influx of digital content has made its way into the marketplace, which is making it difficult for end-users to find the right service and for developers to reach the right segment.

“

“

Now, anyone can produce an app. The entry barriers have almost disappeared, and the market has become much more uniform in terms of protocols and standards.

Although magazines are still enjoying healthy levels of readership in this part of the world, publishers have yet to invest too heavily into online platforms tied to their publications.

As SmartPhone penetration and the use of mobile devices continue to rise in the region, the case is becoming stronger for media companies to start making digital content a priority.

2Pure e-Publishing is one new player that has capitalised on these trends and has made headway in this area through the creation of a series of niche Arabic lifestyle websites.

The first websited launched by 2Pure was Nawa3em.com in late 2011, which has already become the region’s leading Arabic-language website for women. The website reached a milestone when it hit the one million mark for unique visitors. Zoya Sakr, Co-Founder of 2Pure e-Publishing and Founder of Nawa3em.com, says her inspiration for launching a website of this nature came from a market need that she noticed during her time working in the Arab media space. “I’ve been working with Arab women for the past seven years and I’ve done research on what their interests and needs are. There is clearly a lack of quality and original Arabic content availabe to them, especially in fashion and luxury. So, we were keen to develop a website that will provide all of these elements,” says Zoya. “Our team did extensive research to see what Arab women were searching for on Google, in order to develop our navigation sections and categories,” she adds.

34

November 2012

SME ADVISOR Middle East

Rudolf Jabre, CEO, 2Pure e-Publishing

2Pure e-Publishing CEO Rudolf Jabre originally founded the branding agency 2Pure in 2001, a time when the demand for digital was underdeveloped in the region. Last year, he made the decision to launch the e-publishing arm of his company, and the rest was history. Since the launch of nawa3em.com, a number of sister websites have joined the 2Pure e-publishing websites, including ra2ed.com, which is tailored to the modern businessman, and reaches 700,000 unique visitors per month.

In June 2012, the company launched gheir.com, a website focused specifically on luxury and fashion. By the end of the year, the company aims to launch a youth-centric portal, which they expect to garner big interest through social media.

According to Zoya and Rudolf, the differentiating factor of their success lies in two very important components of these websites – the original and quality content being published online, as well as the social features, which allow users to use their own voice and actively be a part of the discussion. “We found that with the rising numbers of social media users in the region, that it would be a good idea to include a social section on the website, where users can have a voice and create and share their own content. We’ve also set up competitions for the best stories to better engage our users,” says Rudolf.

They admit that managing all of the various aspects of the business is no doubt challenging, as online users have come to expect everything instantly available to them. “The challenge is to continuously have highquality content available on an updated basis on all of our websites, and also manage all of the social aspects to build up our audiences,” says Zoya.

Referring to the increase in startup activity arising from a younger generation, Rudolf advises budding entrepreneurs to get the necessary help wherever needed, as its unlikely that they have expertise in every area of the business. “My advice is to not do it yourself from A to Z; we are a digital agency and we still get advice from consultants, as we know we still have a lot to improve on. So, getting a good technichal team can help you bring your product to life,” he says.

OPPORTUNITIES

Cyber security Tom Powledge, VP of SMB Delivery, Symantec, talks about the challenges of selling security to SMEs and changing attitudes in cloud adoption.

36

November 2012

SME ADVISOR Middle East

S Joumana Saad CPI Business

MEs in the region are currently facing a number of issues with regards to managing their IT infrastructure, including increased security threats, the adoption of cloud technology and the need to protect mobile devices in their networks. According to a recent survey conducted

by Osterman Research, the typical SME employee uses a number of endpoint devices, a desktop computer, a laptop, a SmartPhone, a tablet and home computer, with various applications on them, all of which malware can easily enter their organisation’s network.

Cyber criminals employ multiple compromised endpoints and social networking to reach large numbers of targets, pinpointing the more popular mobile devices such as Android and iOS. Symantec, one of the world’s largest providers of Internet security and backup software, has recently refocused its business to develop new products and solutions created specifically to help SMEs protect their information. The company recently went full force in marketing to SMEs during GITEX Technology Week 2012, which was held in Dubai in October. The company’s bright yellow branding could be seen at just about every section of the venue during the five-day exhibition. In addition, the company served as the main sponsor of the exhibition’s new SME Zone.

along the way where they hesitate when it comes to the buying process. “In my experience, I’ve seen that people often wait until something bad happens before they actually go out to get security or backup solutions.

I think most of the people I meet from SME companies know they need protection; it’s just a matter of making it very easy for them to purchase it and get what they need,” says Tom. New SME-focused solutions

There has been a lot of talk lately on the issue of backup and the lack of recovery plans implemented by SMEs. This year, Gartner released a report on Best Practices For Addressing the Broken State of Backup, which shed light on strategies and lessons learned from eliminating legacy backup infrastructure problems. Looking to address this pressing issue, Symantec will introduce Backup Exec 3600, a simplified and intuitive backup solution for SMEs. “Beyond features, we are changing the regional market with technologies like our purpose-built appliances that combine backup software, servers, storage and deduplication in a single solution,” says Amer Chebaro, Appliances Sales Manager for Emerging Region at Symantec. “Both our Backup Exec and NetBackup appliances provide customers with a platform that centralises backup for physical and virtual environments and maximises performance,” adds Amer.

A message of protection

This positioning fits perfectly into the company’s future strategy in the region and around the world, with the creation of Symantec Small and Medium Enterprise, a

“

It’s really about continuing that brand recognition. I think the message of protection is most important to what Symantec stands for. When you think of viruses today, they can wipe out any small business and we’ve seen targeted attacks on these businesses increasing substantially within the last few years.

“

Tom Powledge

new business unit taksed to serve the unique needs of this market. “It’s really about continuing that brand recognition. I think the message of protection is most important to what Symantec stands for. When you think of viruses today, they can wipe out any small business, and we’ve seen targeted attacks on these businesses increasing substantially within the last few years,” says Tom Powledge, VP of SMB Delivery at Symantec.

Even with more awareness in the market, selling security is still no simple task. More and more solution providers are entering the marketplace with complex solutions that companies are not always able to comprehend. Statistics have shown that SMEs globally generally understand the importance of adopting security measures, yet there is a disconnect somewhere

Attitudes on security

50% 40% 67% Source: Symantec SMB Threat Awareness Poll

SME ADVISOR Middle East

November 2012

37

OPPORTUNITIES Security offerings Endpoint Procection Small Business Edition 2012 • Fast and effective scans protects against viruses, worms, Trojans, spyware, and won’t slow down your systems so you can focus on running your business.

• Gain flexibility to enjoy the power and convenience of a cloud-managed service with always-on protection or manage locally on-site with a server.

• Save on time and labour with set up in just minutes with no additional hardware • Symantec Insight and SONAR technologies detect new and rapidly mutating malware stopping malicious behaviour.

• A single subscription fee flattens operating costs and covers maintenance, service updates and 24x7 support.

Backup Exec 3600 • Protects both physical or virtual servers and applications.

• Manages data growth and reduces data backup storage by up to 90%.

• Minimises downtime and data loss by recovering what you need, when you need it.

• Enterprise class reliability – RAID 5 data drives, mirrored SSDs for hardened OS, redundant power supplies, battery backup on RAID controller.

• Provides a secondary copy of your data in the event of a system or site failure.

Another key product included in the new lineup is Endpoint Protection Small Business Edition 2013, which will be available early next year. It offers simple, fast and effective protection against viruses and malware, and includes both a cloud-managed service, as well as an on-premise option, in case a business is not quite

“

I’ve seen that people often wait until something bad happens before they actually go out to get security or backup solutions. I think most of the people I meet from SME companies know they need protection; it’s just a matter of making it very easy for them to purchase it and get what they need.

“

ready to switch to the cloud. The value proposition for the cloud option, Tom says, is the ease of use and time-saving benifits, as well as the ability to receive all feature upgrades automatically, by simply being a annual subscriber to the product.

Symantec’s new offerings aim to change the way SMEs look at security, by marketing products that are simple to navigate and provide real value to companies with limited time and an even smaller IT budget.

Referring to the cloud-managed Endpoint Protection solution, Tom says that he is of the belief that “once customers see and experience it for themselves, they will realise the benefits, in terms of saving time and effort. You can start managing the security of your small business in 10 to 20 minutes by using the cloud-

38

November 2012

SME ADVISOR Middle East

managed option. Of the customers that have taken this route, we are seeing satisfaction rates above 90%,” he adds.

Advocating cloud adoption

The company also recently unveiled the findings of its 2012 SMB Cloud Adoption Survey. The report, which was conducted in the UAE, found that about 46% of SMEs in the country were considering cloud computing solutions. The survey also highlighted a high level of awareness of cloud technology across the board, which Tom expects to lead to a sharp increase of SMEs moving to the cloud to manage their security. “The primary reason for that is the need to save time. With smaller organisations, the IT manager is also the owner of the business, or someone who does IT on top of another job. They don’t have alot of time to spend on managing and researching their IT. They need things to be quick and easy. We saw that in the study and it’s a general trend and demand that we are seeing globally, ” he adds.

Coming from the US, this is the first time that Tom has visited Dubai and participated in GITEX. Yet, he could not help but be taken back by the size and energy of the exhibition. “You don’t see that many of these huge technology trade shows anymore in places like the US, so it’s great to see it come to life here. One of the distinct impressions for me is having all of the countries represented and seeing all of the IT companies in the region. It reminds me of all the technology shows we used to see in the US before,” he says. “I think the regional ICT space is just as advanced as anywhere in the world and it’s truly impressive.

The modern feel of Dubai and having an event of this size here with all of the major corporations, it really rivals any of the large technology trade shows around the world.”

LEGAL

Piercing the

corporate veil Ahmed Ibrahim of Al Tamimi & Co. discusses the definition of the corporate veil and instances when shareholders can be liable for the assets and liabilities of a corporation.

40

November 2012

SME ADVISOR Middle East

W

“

of liability of such company’s shareholders or partners, rather than the liability of the company itself.

In other words, the company is liable for all its debts, with no limitation, but once its assets are exhausted, its creditors cannot pursue the personal assets of its shareholders.

Although joint stock companies, either public or private, do not have the abbreviation of LLC attached to them, the liability of their shareholders is also limited to their shareholding subscription in the issued share capital of the company in question. The concept of limitation of liability of shareholders in public joint stock companies has had a positive impact on encouraging public stock market investment and has boosted the concept of the initial public offering as an indispensable source of corporate finance.

“

Ahmed Ibrahim Al Tamimi & Co.

hat is the definition of the corporate veil and its historical background? Corporate veil is a legal term for the fundamental rule that assets and liabilities of a corporation are separate from the assets and liabilities of its shareholders.

This rule protects shareholders from being liable personally for the company’s debts and other obligations. However, this concept has its exceptions.

For shareholders, this means that the worst fate that can befall them (if the company becomes insolvent), is that they lose the entire value of their investment. However, their personal assets or funds will not be affected if the company goes bust, unless of course they have signed personal guarantees.

The historical origins of the concept of corporate veil, or the separate legal personality of legal entities, (companies and corporations) traces its roots back to the Roman law (known now as the Civil Law System, as opposed to the Common Law System).

It was subsequently developed under the English legal system in the second half of the 19 th Century when the House of Lords of England delivered its judgment in Salomon v Salomon & Co (1897).

The creation of a separate legal personality is just that; a separate legal personality potentially capable of suing and being sued in its own name, of holding property in its own name, and logically, therefore, of making profits and losses that are of its own and not those of its members.

Legal practitioners often use metaphors to describe a legal process, so in common law jurisdictions they describe the situations where the limitation of liability of shareholders are not maintained by lifting, piercing or parting the veil of a company.

The members have no direct claim on the assets and no exposure to its losses beyond the share capital they invested. The limited liability of shareholders in companies is the logical sequence of the concept of separate legal personality of companies.

How would a third party know that they are dealing with a company whose partners have a limited liability?

Companies’ names usually end with the letters LLC. This abbreviation refers to a Limited Liability Company and indicates that the liability of its shareholders or partners is limited to their proportional shareholding subscription in the issued capital of the company.

So, the main reason of the existence of the abbreviation LLC is to warn all third parties who may be dealing with that company that the liability of its members is limited to their contribution in the company’s capital.

But the abbreviation LLC refers only to the limitation

Are all types of entities conferring their members a limited liability? No. According to the UAE Federal Commercial Companies Law No. 8 of 1984 (CCL) there are various types of legal entities.

SME ADVISOR Middle East

November 2012

41

LEGAL About Ahmed is Head of Equity Capital Market and has experience in general corporate/ commercial matters (including joint ventures, founding of joint stock companies, limited liability companies, partnerships, limited partnerships, branch offices, and representative offices, corporate restructuring, formation, shareholders arrangements, corporate governance, and

acquisitions). He also participates in drafting, reviewing, and negotiating, shareholders agreements, share purchase agreements, and subscription agreements, as well as various commercial agreements including sale of goods, agency and distribution agreements.

Al Tamimi & Co, originally established in 1989, is today one of the leading law firms

in the Arabian Gulf region. It is one of the largest local, non-affiliated law firms in the United Arab Emirates, with offices in the Emirates of Dubai, Abu Dhabi and Sharjah, Riyadh (KSA) and associate offices in Doha, Baghdad and Riyadh.

For more information, visit www.tamimi.com

Partners in general partnerships are jointly liable for the company liabilities to the extent of all of their assets. That is why the name of general partnerships must consist of the names of all the partners.

The partnership’s name may be confined to the name of one, or more, of the partners with the insertion of an indication as to the existence of a company. The partnership may, however, have a special trade name.

It happens that partners in general partnerships may use a name of a third party (which is usually a famous family name). In this case, if such third party knows that the general partnership in question will use their name, such an individual shall be jointly liable for the company’s liabilities. The knowledge of the third party, whose name is used in a general partnership, can be proved by all means of evidence.

“

One of the major aims and drives behind the concept of the limited liability of shareholders and having a separate legal personality of companies is to enable business people to incorporate their business and to limit their personal exposure by avoiding incurring further personal liability.

“

Limited partnerships are a hybrid partnership whereby one or more general partners are liable for the company liabilities to the extent of all their assets, while one or more limited partners are liable for the company liabilities to the extent of their respective shares in the capital only.

Similarly, companies limited by shares are companies which are formed by general shareholders, who are jointly liable to the extent of all their assets for the company liabilities and other participating shareholders, and liability is only limited to the extent of their shares in the capital.

With respect to joint participation (venture) partnerships, third parties have no right of recourse, except towards the partner with whom he had dealt with. If the partners act in a manner that might inform a third party of the existence of the partnership, it may be considered a real existing in which all its partners will be jointly liable towards third parties.

The liability of partners or shareholders in the remaining legal forms of companies (public joint stock company; private joint stock company; and limited

42

November 2012

SME ADVISOR Middle East

liability company) is limited to their proportional contribution in the issued share capital of the company.

What are the statuary rules of limitation of liability and companies’ separate legal personality?

Article 64 of the CCL defines a public joint stock company as any company whose capital is divided into equal value negotiable shares and whose shareholders are only liable to the extent of their share in the capital of the company. It is also worth noting that Article 216 of the CCL provides that the provisions of public joint stock companies (including the limited liability of shareholders) are applicable to private joint stock companies.

As for limited liability companies, paragraph two of Article 218 of the CCL states that: “Each partner shall only be liable to the extent of his share in the capital….”

Article 256 of the CCL also provides that the liability of the limited shareholders in companies limited by shares, is only limited to their contribution in the share capital of the company.

It is also worth noting that Article 166 of the CCL provides that the assets of the company may not be attached for debts incurred by one of the shareholders.

However, creditors of the shareholder may attach the shares and dividends accrued from those shares.

Also, Article 288 of the CCL provides that a limited liability company will not be dissolved upon the withdrawal or death of a partner or, bankruptcy or insolvency of one of the partners. This rule is subject to any express term to the contrary in the company’s memorandum.

Are there any exceptions to the limited liability of shareholders or cases where the corporate veil is to be lifted?

Yes. There are exceptions to the limited liability of shareholders in LLCs and joint stock companies. In particular situations, the separation of the personality of a company and its shareholders is not to be maintained.

The veil of incorporation is thus said to be lifted.

Legal practitioners often use metaphors to describe a legal process, so in common law jurisdictions they describe the situations where the limitation of liability of shareholders are not maintained by lifting, piercing or parting the veil of a company.

Under the CCL, there are a number of exceptions to the concept of limitation of liability of shareholders and the separate legal personality of companies.

Article 77 of the CCL provides that during the course of inviting the public to subscribe in a pubic joint stock company, the founders of the company in question have to issue a prospectus and publish it in two local daily newspapers.

The prospectus has to include all the financial and business related information of the company in question, as well as, any other matters affecting the rights or obligations of the shareholders.

The founding members are jointly liable for the accuracy of the particulars mentioned in the prospectus. In other words, the founding members may not rely on their limitation of liability if they are sued by one of the public subscribers for inaccuracies in the prospectus.

Article 84 of the CCL obliges the founding members jointly to reimburse the paid-up value of the shares back to the subscribers if they decide to rescind the incorporation of the company in question.

This is a logical consequence as there will be no company to be sued and therefore its founders will be exposed in their personal capacities and will be jointly liable vis-à-vis public subscribers.

Article 156 of the CCL provides that the creditors of a company have the right to sue any of such company’s shareholders directly in their personal capacity to oblige them to pay up any unpaid amount due for their shares in the company.

Although any defaulting shareholder is only liable to pay the unpaid balance of his shareholding participation in the company, the corporate veil is lifted in the sense that creditors have the right to go after the shareholder directly in his personal capacity.

Article 223 of the CCL provides that if a partner in an LLC presents a share in kind, it must be valued in the company memorandum, specifying its kind, the name of its contributor and the amount it represents in the capital. The contributor of the share in kind shall be liable towards third parties for the accuracy of the estimate of its value in the memorandum.

If it is established that the share was valued at more than its real value, the contributor of the share must pay the difference in cash to the company and the founding members shall be jointly liable with their private assets for the payment of this difference.

Article 226 of the CCL provides that if, at any time after incorporation of an LLC, the number of partners exceeds the statutory limit (for example 50 partners), the competent authority will notify the company to rectify its situation. If the company does not rectify its position within six months subsequent to the date of the notice, the company shall be deemed dissolved and the partners shall be personally and jointly liable for the debts and liabilities incurred by the company as from the date of exceeding the statutory limit of the number of partners. However, partners who are ignorant of such excesses are exempted from that provision.

Article 316 of the CCL provides that if a foreign company, or its office or branch, practices activities in the UAE before applying the formalities stipulated in the CCL, all the persons who performed this activity shall be personally and jointly liable for their actions.

What are other grounds on which a shareholder can be sued?

In practice, shareholders in SMEs typically assume management roles in their companies. It is not unlikely that a major shareholder in a limited liability company assume the role of the general manager or the executive manager of such company.

In this case, the shareholder who assumes a management role in his company can be sued by other shareholders, or third party, for all acts of fraud, abuse of power, violation of the law or the company articles, in addition to mismanagement.

It is also to be noted this is a mandatory rule and any agreement to limit or exclude such liability will be void. They will be sued in this case in their capacity as a member or the head of the management team, rather than as a shareholder, whose liability is limited.

“

The founding members are jointly liable for the accuracy of the particulars mentioned in the prospectus. In other words, the founding members may not rely on their limitation of liability if they are sued by one of the public subscribers for inaccuracies in the prospectus.

“

Exceptions

On the other hand, a shareholder may agree to provide the creditors of their company with a surety (personal guarantee) to guarantee full payment of the company’s debts if it fails to do so. Such a shareholder can be sued on the basis of the guarantee(s) that they provide.

Conclusion

Having relayed the above legal concepts and provisions, it is clear that a company has a separate legal personality from its members. A company’s property is owned by the company as a separate person, not by the members of such company and the company’s business is conducted by the company as a separate person, not by its members. It is the company, as a separate person, that enters into contracts in relation to the company’s business and property.

One of the major aims and drives behind the concept of the limited liability of shareholders and having a separate legal personality of companies (either conferred by the CCL or under other companies law in other different jurisdictions) is to enable business people to incorporate their business and to limit their personal exposure by avoiding incurring further personal liability.

Apparently, there are common grounds between the common law legal system and the civil law legal systems.

One can even argue that the roots of particular concepts in the common law system have originated from the civil law system, and vice versa.

It is also worth noting that each rule has its exceptions; either statutory exceptions or, exceptions generated by the legal practice. All exceptions, however, must not conflict with other mandatory rules and should be applied prudently.

SME ADVISOR Middle East

November 2012

43

BUSINESS PIN UP

Chain

reaction Just Falafel’s CEO and Co-Founder talk to us about the brand’s fast expansion and the challenges of being an SME in the franchising business.

44

November 2012

SME ADVISOR Middle East

F

“

“

Joumana Saad CPI Business

rom just one glance at Just Falafel’s Facebook Fan Page, you can begin to understand how the fast food brand has gained its popularity over the last few years. With over 687,000 fans, and more than 3,500 franchising requests from 70 countries, it seems like everyone is looking to get a piece of the pie, or in this case, falafel.

Yet, when the company first started in 2007, out of a small shop in Abu Dhabi, these type of growth figures would have seemed unimaginable. Mohamad Bitar, who co-founded Just Falafel with two other partners, recalled some of the negative feedback received when the business was first launched. “People kept saying that it won’t work, that no one here will go for a poor man’s food at such a price,” says Mohamad. “The idea was to bring the poor man’s food and elevate it to the restaurant chain. The first day we opened, we had no marketing budget whatsoever, but people were lining up at the door.”

The business grew modestly over the next few years, as word-of-mouth helped make way for three other locations in the UAE. Then in 2011, things began to change very quickly for the company as heightened interest in the brand turned into investment and franchising opportunities, which led to rapid growth and cross-country expansion in a very short amount of time. All of these things are good problems

The idea was to bring the poor man’s food and elevate it to the restaurant chain. The first day we opened we had no marketing budget whatsoever, but people were lining up at the door.

for an SME to have nowadays. Managing all of the moving pieces, however, is easier said than done, says Fadi Malas, the company’s CEO. “The challenges are in adapting all of partners to growth factors that you are experiencing. You don’t want to grow too fast, or underspend. So, you must always maintain a balance, so that you achieve growth with a heathly cash flow,” he explains.

Fadi joined the business in 2011, and says he was initially attracted by the opportunity of the brand’s healthy food proposition, along with the fact that this particular food category was not being commercialised.

“Our business plan in 2011 was to expand in the UAE. We sold 25 franchises, but we also ended up opening up our first international outlet in Jordan. Then it became like a chain reaction, as locations opened up in Lebanon, Qatar and Oman, and we are now opening in places like Saudi Arabia, India and the UK.” Fadi explained that after selling so many locations in the regional market, his team felt that they had no choice but to be outward looking. The UK in particular is looking to become one of the most important international markets for Just Falafel, as the company recently announced plans to roll out 25 stores there by the end of 2013. The brand’s first flagship store in London’s Covent Garden, will officially open in November 2012.

Next year, Fadi says he would hope to branch out into the US, as it represents the world’s biggest market for fast food and chain restaurants. “We’ve received a lot of franchising requests out of the US recently and have a huge pipeline of requests. So we are trying to prioritise them and qualify our partners, but they key is to keep a great relationship with them so that share our vision our culture,” Fadi adds.

SME ADVISOR Middle East

November 2012

45

BUSINESS PIN UP

L - R: Fadi Malas, CEO, Just Falafel; Mohamad Bitar, Co-Founder, Just Falafel

This year marked a number of milestones for Just Falafel, including becoming Facebook’s first GCC case study. Rapid deployment and return on investment were among the company’s primary reasons for prioritising social media ahead of more traditional marketing investments. The company’s quirky videos and responsive regional fan base also made Facebook an ideal fit for its growth strategy. With the development of the franchising application on company’s Facebook Fan Page, Just Falafel secured thousands of potential partnership opportunities across the GCC, India, the UK, and as far as Canada, which was crucial in exploring market demand and growth opportunities.

“

As you develop more relationships and more visibility, corporate governance must become part of your core structure, because you cannot expand without going through certain processes, and adopting the right framework and procedures that account for all parts of your business.

“

The company began actively managing their Facebook page in 2011, and quickly picked up on the marketing value it could provide them. To this day, Fadi credits social media as being the company’s “most important achievement” in driving brand exposure and building up a customer base. “The trick is to first develop a certain level of fans so that that your channels start to resemble a community, and then it’s your job to communicate with them about all aspects of your business; how you’re growing, where you’re opening, and so on,” he says.

Franchising remains one of the toughest trades today, especially in this part of the world, as it hasn’t been commercialised on a major level. Traditionally in the Middle East, franchises have stemmed from big brand names like Starbucks and KFC, which are usually bought by large corporations or wealthy investors who

46

November 2012

SME ADVISOR Middle East

The company operates 25 outlets in the UAE alone, and has recently branched out to other markets including Lebanon, Saudi Arabia and India.

operate them on an exclusive basis. For Just Falafel, starting from scratch meant implementing the right practices and procedures from the very beginning. “As you develop more relationships and more visibility, corporate governance must become part of your core structure, because you cannot expand without going through certain processes, and adopting framework and procedures that account for all parts of your business,” says Fadi.

When asked if he would do it all over again, Mohamad jokingly hesitates as he remembers just how far the business has come. He expects to see competitors enter the marketplace, and welcomes this concept as a way for other businesses to help educate the public about the food category. His advice to aspiring entrepreneurs who want to get into the franchsing business is to be persistent and strike when the timing is right. “Even today, we all work as a family and never take anything for granted,” says Mohamad. “We were just talking recently about how we haven’t celebrated yet, since we have not reached where we wanted to, and I think we still have a long way to go.”

3,500 200 25

franchising requests received from over 70 countries outlets planned to be opened globally over the next five years

locations to be launched in the UK by 2013

Industry Watch

GOVERNMENT BOOST for IT SPENDING The IT services market in the Middle East is estimated to reach USD 5.2 billion by 2015, marking an annual growth rate of 9.6%, according to a recent study.

USD 50 million in spending, and approximately 15% of the MENA market.

According to analysts, IT services are becoming more prominent in the Middle East, and their adoption is also increasing in the region, as they help to significantly reduce the overall costs of an organisation. Currently, the market is witnessing certain trends, which suggest that the IT services market in the Middle East will grow more quickly in the coming years.

Recent trends

T

1.5

billion

Combined IT spending in 2011 (Saudi Arabia and UAE)

“

“

USD

he study examined some of the major trends in the IT services market in the Middle East, namely the increased adoption of project-based IT services, increasing awareness about cloud computing, emergence of local vendors in IT services market and growth in outsourcing of IT services.

The major growth driver for the IT services market in the Middle East is the government support for IT initiatives. Several regional governments such as Saudi Arabia, the UAE and Egypt, have taken initiatives to implement e-governance in offices, schools and colleges, which is driving the growth of the market.

Another major growth driver is the increase in the demand for IT services because of the rapid growth of the SME segment in the Middle East.

The IT services market in the Middle East has continued to grow since the economic recession of 2008. Large corporations, SMEs and government organisations are the major customer segments of IT services in the region.

Key markets in the MENA in 2011 were Saudi Arabia (USD 1.5 billion) and the UAE (US one billion). Combined, the two countries accounted for nearly 70% of all IT services spending in the MENA region. Other important markets include Egypt and Kuwait, accounting for

IT services are becoming more prominent in the Middle East, and their adoption is also increasing in the region, as they help to significantly reduce the overall costs of an organisation.

48

November 2012

SME ADVISOR Middle East

The increased adoption of project-based IT services including customised software development, IT consulting, application development and maintenance, project-based ERP and CRM implementation and system integration services by the public sector and large corporations have been the major trend setters in the IT services market in the region.

The study further states that project-based IT services enable efficient integration of IT software and hardware to maximise business benefits and align the IT infrastructure, according to the requirements of a project. The public sector, large corporations and SMEs are also becoming aware of the benefits by integrating cloud computing in their IT infrastructure.

The advantages of cloud-based services such as scalability and cost-effectiveness have prompted government and private organisations to integrate their in-house IT infrastructure with cloud-based services.

Challenges and solutions

Still, the IT services market in the region faces certain challenges, including the lack of qualified IT professionals as well as the increase in regulations since the economic recession of 2008, which has restricted the growth of the offshore IT services market in the Middle East.

Other risks to IT in the region include regulatory hurdles. Software can affect privacy and the legality of data sharing which cross-cut laws. Further, in places where there is inadequate telecommunication infrastructure, it is challenging to roll out data-centric high-end IT services, informs the study.

Most IT solutions are relatively cost-effective, scalable and are reliable. In business terms this means that organisations that are early-adopters have the opportunity to become more cost effective quicker and increase their profit margins. This also means that there will be increased competition to deliver better services among IT vendors and firms alike.

Industry Watch

LEADING THE WAY IN LOGISTICS A recent report by Frost & Sullivan forecasts the UAE logistics market to reach USD ten billion by 2015.

“

The supply chain and logistics sector now accounts for a significant percentage of the UAE’s GDP, which is a strong indication of the possibilities and long-term growth opportunities emerging in this sector.

33% the rate at which the UAE export market grew from 2007 to 2011

50

November 2012

SME ADVISOR Middle East

“

T

he UAE’s logistics market is expected to sustain a compound annual growth rate (CAGR) of 8%, reach USD 10.06 billion by 2015, from just USD 6.35 billion in 2009, according to a Frost & Sullivan report. The UAE has consistently maintained its status as a key logistics hub in the GCC with the country’s growing import and export volumes.

From 2007 to 2011, imports in the UAE sustained a CAGR of 12%, while the export market grew by 33%, or twice the rate of imports, according to Dun & Bradsheet. The re-export market also expanded by 13% during the same period, underlining the critical importance of the country as a strategic trade link to markets in the GCC, Indian Subcontinent, Commonwealth of Independent States (CIS) countries and African countries.

Tapping into this growth market, Barloworld Logistics, a provider of logistics and supply chain management solutions, recently revealed that it is considering several small acquisitions to further strengthen its expertise and provide clients with smart supply chain solutions. This, as the company’s capabilities are being leveraged by clients to align their

supply chain strategy with their business goals to achieve a competitive advantage.

Barloworld Logistics further revealed that the GCC region will remain central to its growth initiatives, particularly the Barloworld Logistics stressed that rapid market growth and largescale investments in the UAE’s logistics sector, as well as in other GCC states underline the important role of this key industry in realising the economic diversification programme being adopted by different countries in the region.

The company currently offers its logistics services and specialised competencies, and delivering strategic support to clients in the UAE and across the GCC. Frank Courtney, Barloworld Logistics Chief Executive for EMEA region, said: “Supply chain management plays a crucial role in the sustained economic growth of the UAE, as an increasing number of investors are taking advantage of the country’s advanced logistics infrastructure and strategic location. Key international players are, therefore, keenly monitoring the UAE’s capability to handle future demand and ultimately ensure the safe and efficient flow of goods in and out of the country.” He also noted similar developments happening in other GCC countries, which are likewise taking advantage of the region’s strategic location to serve as a major logistics hub.

“The supply chain and logistics sector now accounts for a significant percentage of the UAE’s GDP, which is a strong indication of the possibilities and long-term growth opportunities emerging in this sector,” adds Courtney.

De Symetria designed by Luca Scacchetti

Executive Desks

|

Conference Room Tables & Chairs

|

Modular Desking Systems

|

Panelling Systems

Toll Free 800 OFFICE, Dubai Pyramid Center 04 358 2272, Doha Salwa Road 04 421 7941, Muscat Muttrah 24 523005, www.officelandme.com

Industry Watch

Women in the workplace Booz & Company’s Third Billion Index identifies economic progress and the biggest challenges for working women in the MENA region. the characteristics of women’s economic standing into two separate clusters: the first, inputs, identifies measures that a government and other entities can take to affect the economic position of women.

These are grouped into three combined elements that include women’s level of preparation for joining the workforce, the country’s access-towork policies and entrepreneurial support.

The second centres on a set of outputs, which are based on observable aspects of women’s contribution to the national economy. These comprise issues such as inclusion in the workforce, the degree of advancement in the national economy and equal pay for equal work in practice.

Key findings

I

“

“

12%

projected GDP growth if female employment matched male employment in the UAE

f female employment rates were to match male rates in the UAE, the country’s GDP could see a boost of 12%. In Egypt, it would grow by 34%. These figures indicate the pivotal role that women in the workforce can play in spurring economic growth. Yet, despite amounting to almost one billion worldwide and rivaling the populations of India and China, this fast-growing group of people has not received sufficient attention from key decision-makers in many countries.

In light of this, management consulting firm Booz & Company has created the Third Billion Index, a ranking of 128 countries based on how effectively leaders are empowering women as economic agents. The Index is a composite of established data on women’s economic and social status. It aims to isolate factors that facilitate women’s access into the larger economy as well as determine how additional advancements and further integration can be achieved.

The Third Billion Index is a combination of indicators of women’s potential for economic participation, drawn from a spectrum of criteria, all of which were taken from existing data compiled by the World Economic Forum or the Economist Intelligence Unit. The index divides all

There is a clear correlation between the front-end processes and policies regarding women’s economic opportunities (inputs) and the actual success of women in their national economies (outputs).

52

November 2012

SME ADVISOR Middle East

The results of the index led to several revelations about government practices and women’s economic progress. “First, there is a clear correlation between the front-end processes and policies regarding women’s economic opportunities (inputs) and the actual success of women in their national economies (outputs). We discovered this by clustering the 128 countries into five broad categories based on their index rankings,” explained Dr. Karim Sabbagh, a Senior Partner with Booz & Company.

The countries with a strong set of both inputs and outputs are labeled on the path to success; these are typically developed economies. Moreover, the countries taking the right steps have implemented a slate of input policies and are just beginning to see their efforts pay off. They vary widely in other political and social dimensions and include Malaysia, Tunisia and Venezuela. On the other hand, a small number of states also comprising China and Cambodia are forging their own path; they are seeing modest output results, but have not yet established a strong foundation of inputs.

The next group of countries, classified as average, consists of those that have taken slow steps to improve inputs to women’s economic progress and have, subsequently, seen commensurate output results. Nations such as Colombia, Serbia and Thailand belong to that realm. Lastly, there are nations that have not yet approached the problem at all; those are said to be at the starting gate and include most of the Arab states in the Index, as well as Indonesia, Laos, and Nigeria. This category accounts for the largest number of the 128 countries, suggesting an immense economic opportunity in many parts of the world.

GITEX 2012

STANDING OUT FROM THE CROWD The new SME Zone, which launched at GITEX Technology Week 2012, gives companies an enhanced platform to exhibit, network and learn about best industry practices.

GITEX 2012 marked the launch of the new SME Zone which was organised to maximise the return on investment of SME exhibitors.

W

ith a heightened interest in the regional SME segment, it would only make sense for an important event like GITEX to create a feature that would better support SMEs exhibiting at the trade show. Although many SMEs might be interested in the latest technologies and trends, there are specific topics that lend themselves more to the direct needs of smaller ICT companies.

This year at the new SME Zone, security was issue number one, as the number of malware attacks on SMEs continues to rise globally, sometimes resulting in devastating consequences. Recognising this trend and demand on the SME side, Symantec made the decision to sponsor the new zone. The move was strategic, as the company has recently refocused its business model on SME solutions and has even created a new division, Symantec Small & Medium Enterprise, to develop a pipeline of new innovative products.

“We’ve increased our marketing spend and created a new sales team focusing specifically on SMEs. We’ve also changed our product line and designed specific solutions for this

54

November 2012

SME ADVISOR Middle East

market. It’s really about continuing that brand recognition and our message of protection is most important to want Symantec stands for,” Tom Powledge, VP of SMB Delivery, Symantec, tells SME Advisor. During the event, Tom gave a presentation on a number of new offerings from Symantec, as well as the benefits of switching to cloud-managed security solutions.

Other presentations were given by SMEs from around the region, including Bazarsoft from Syria, MBIS from Algeria, and Acentria Solutions from the UAE and Qalamsoft from Jordan, who spoke about the nature of their business as well as the best solutions and practices SMEs can utlitise to boost efficiency in the workplace.

Walid Bazarji, Founder, Bazarsoft took the stage to present the various features of the company’s accounting software, which is designed for SMEs in Arab countries.

Arab accounting experts and auditors came to listen to the presentation and were most interested in the features which can be provided to external auditors. Many of the attendees were interested in the product’s Cost Centre

GITEX 2012

The International Zone included exhibitors from 30 countries who showcased their latest technologies.

option available in the product, and were impressed by its adaptability to local demand. Attendees at the Bazarsoft presentation had the opportunity to experience the software for themselves as they all received a shareware copy of the software.

“The SME Zone provided us great support as an exhibitor and presenter. We had visitors from all over, North Africa and other areas, and overall our experience

“

For us, it was very important to be there. It has helped revitalise the buzz in my sales team. My strategy was to meet existing clients, as well as meet other software providers, to create a partnership with them to sell their products and services in the UAE.

“

was good. We will plan to follow up with all of the contacts and leads we had during the event to get the necessary feedback,” says Walid. He also noted that most of the questions he received from visitors focused on main difficulties they are facing regarding processing proceduces as well as other technical aspects of their day-to-day work demands.

Yousef Eisa Aljamal, Founder and Owner of Qalamsoft, gave a notable presentation on the company’s innovative search and recognition technology. Qalamsoft says it has created the first software in the world that reads natural Arabic handwriting in real-time. It is astoundingly fast, reads cursive (joined up) writing and does not need training on the part of the user. The software is designed to run on PDAs, PCs (using any number of low cost tablets) and on Tablet PCs. Ali Azfal, Founder of Acentria Solutions, shared his own experience of how various Google apps have helped him in his own business by saving time and

56

November 2012

SME ADVISOR Middle East

simplifying overall workflow management. With a live demonstration, Ali explained how apps like Boomerang for Gmail can better tag and file important emails, and even remind you to follow up at the right time. In addition, an app like Google Calendar let users suggests meeting times that work for everyone and attach relevant documents to a scheduled event. He also highlighted the trend of more small businesses utilising Google Docs which allows teams to virtually collaborate on documents, Excel sheets or presentations. These features can provide a number of benefits to emlpoyees who are constantly on the go, or who work out of different offices.

With regards to tasks and workflow management, Ali says the biggest challenges facing SMEs today are training, costs, flexibility, and the ability to utilise the cloud. He also advises professionals who are not yet familiar with Google apps to “keep it simple, learn one app at a time, and not try to learn all the apps immediately.”

Acentria Solutions, a du Telecom Business Partner, also exhibited at the SME Zone, with the intention of reaching a wider range of clients. “For us, it was very important to be there. It has helped revitalise the buzz in my sales team. My strategy was to meet existing clients, as well as meet other software providers, to create a partnership with them to sell their products and services in the UAE,” adds Ali. Surrounding the SME Zone, was the International Zone that contributed greatly to the exhibition’s global influence.

The new platform was dedicated to giving more than 30 specific country groups the chance to present their most innovative technologies and seek profitable cross-border sales and collaboration. The feature was essential in driving the number of international visitors to the fiveday exhibition, and its strategic position was beneficial in broadening the networking environment.

The regional SME segment has become a main focus for ICT companies in recent years, as more and more companies invest in cloud, mobile and other advanced technologies. Based on new figures by IT market intelligence specialists IDC, IT spend by SMEs in the region is set to rise from last year’s outlay of USD 16.73 billion to USD 24.48 billion by 2015. Most of last year’s financial activity was split between Saudi Arabia (11%), the United Arab Emirates (9%), Turkey (12%) and South Africa (26%), and this geographic trend is expected to continue in the coming years.

Trixie Loh, SVP of Dubai World Trade Centre, which organises GITEX, revealed that exhibiting space at the SME Zone had sold out well before the trade show began. “We have doubled last year’s figure, and we are proud to welcome exhibitors from countries like Libya, UK, US, Oman, Lebanon, Jordan, Syria and, of course, the UAE. It is also worth noting that far more SMEs can be found throughout GITEX, as many prefer to exhibit via larger stands in specific sectors,” says Trixie. She also noted that the outcome for this year’s exhibition was “hugely encouraging in terms of the sheer volume of deals, previews, partnerships and announcements.” She adds: “We continue to build on our reputation as a go-to destination for global brands to unveil their latest, cutting edge technologies, not only to the region but also the world at large.”

PLATINUM SPONSOR

www.gew-qatar.com

AN SME ADVISOR PUBLICATION IN QATAR

Center for Entrepreneurship and Career Guidance Powered by Silatech & Qatar Development Bank

Business Process Consulting High Aspirations Analyzed Logically

GITEX 2012

TOP ICT TRENDS GITEX Technology Week 2012 delivers on hype as the exhibition marks its biggest turnout to date.

I

t’s safe to say that the buzz is back at GITEX, and the region’s ICT companies have a number of reasons to exhibit again next year. The energy that could be felt at the five-day exhibition was no doubt contagious, as it welcome a much higher number of international visitors than in years past. ICT companies from over 30 countries could be found exhibiting at the International Zone. In addition, some very exciting stories were also shared at the Africa and Focus section.

The event also served as a venue for a number of eye-catching launches, sparking influential debate and facilitating a host of business connections. Also, with a new dedicated space for exhibiting SMEs, the playing field seemed more level than ever, as companies of all sizes were able to maximise their return on investment and network with a broad spectrum of potential customers and business partners.

Robert Swinnen, VP and GM at Intel Service Provider Group discussed the improvement of business analytics performance using cloud-based environments.

Cloud and big data

Advanced cloud-computing solutions, as well as new issues surrounding the management of big data, were among the key topics being address at the two-day Cloud Confex. “Big Data is the next big game that will allow companies to analyse all kind of data and make business decisions based on deep analysis and not just gut feeling. Big data is not a

James Lyne of Sophos gave live demonstrations which showed the consequences an unprotected SME might face in the event of a malware attack.

revolution, but an evolution of the current data warehouse infrastructure that is already in place. However, it requires clear industry expertise to reap those benefits,” said JeanClaude Michaca, Vice President - Engineered Systems for Oracle, Eastern Europe, Middle East & Africa, during his presentation at the conference.

Key speeches were also delivered by Sebastien Marotte, VP Enterprise EMEA at Google who discussed Big Data Cloud Convergence and solving challenges in the cloud.

In addition, the state of cloud computing in the real world in terms of adoption, approaches and attitudes was addressed by Adriana Karaboutis, VP and CIO at Dell; David Chalmers, Chief Technologist at Hewlett-Packard and Mark Chaban, Director of Server & Cloud Platform Marketing at Microsoft MEA, at Cloud Confex today.

58

November 2012

SME ADVISOR Middle East

Focus on security

Security solution providers present at the show echoed widespread genuine interest among SME companies who have now gotten a lot more serious about minimising risk and implementing the right security solutions into their IT systems. Among the more interesting exhibits was Sophos, which featured educational seminars on the risks associated with not having adequate security software in place. Executives presented live demonstrations of actual hacking to show just how easy it is for malware to spread and wipe out a small business.

The company’s theme this year centred on complete and simple security options. “In terms of the Middle East, we’ve noticed an interesting trend. When I first started coming here, whenever I would speak to someone from an SME company, when it came to security solutions, they wanted to know which antivirus how much does it detect and how much it costs,” says James. “Within the last year, momentum seems to be gaining, people want to know about device control, and data encryption, SME awarness of these security issues has been raised, and that’s a great change in the market here,” he adds.

Software security giant Symantec was among the big names reporting a successful year, having used the event to showcase its latest innovations and thought leadership. “Information protection and security is top-of-the-mind for chief information officers (CIOs) and businesses in the Middle East. GITEX gives us the opportunity to connect with our current and prospective customers about these concerns and explain how Symantec can help them minimise their risks,” says Johnny Karam, Regional Director Middle East and French-speaking Africa, Symantec.

Major announcements

Avaya and Dubai Silicon Oasis Authority (DSOA) signed a Memorandum of Understanding to open a new training centre that will feature the company’s

GITEX 2012

Dubai Internet City held a press conference during GITEX which unveiled a report on The Role of Entrepreneurship and SMEs in the Development of the ICT Industry.

latest video and networking products. The facility will aim to address the challenges businesses are currently facing in the region. The centre will be open to partners, large enterprises as well as SMEs located in the Middle East, Africa and Turkey, and will provide tailored and industry specific courses. One of the main goals behind the creation of such an institute was the need to drive industry certifications on new communications solutions.

“There’s not enough quality training available in this market, as most businesses end up travelling to Europe to take courses or get certified,” says Michael Bayer, EMEA President, Avaya. “We chose Dubai as its ICT space is flourishing, and its well-connected location is key. We are also making SMEs a much bigger part of our marketing focus, so the centre will be a driving force behind our future strategy in the region, with regards to attracting new customers and partners.” Michael also tells us that although the centre will be established as a training facility, it will later be used as an excellence centre, where partners and distributors can go above and beyond to work with Avaya’s developers to implement new solutions in their line of business. The centre aims to certify 1,000 to 1,500 businesses within its first year of operation.

Referring to the overall mood at GITEX this year, Michael added that he had “never seen such high

60

November 2012

SME ADVISOR Middle East

Avaya unveiled a number of new video collaboration solutions and also announced that the company will open a new training centre in Dubai Silicon Oasis.

interest across the board.” He adds: “I think it’s safe to say we’re back to execution and growth. Last year, the climate was more tense as businesses in the region were considering more, rather than buying new solutions. I believe today, business are now more serious about investing in new technologies that are becoming available.”

Dubai Internet City unveiled a report on The Role of Entrepreneurship and SMEs in the Development of the ICT Industry, which highlighted the UAE government’s firm conviction that the SME sector serves as an effective enabler for economic growth. Consequently, the UAE allows 100% ownership for startup companies along with other support services across its free zones.

Malek Al Malek, Managing Director, Dubai Internet City and Dubai Outsource Zone, said: “The report generated in collaboration with Frost & Sullivan identifies the UAE and Dubai as a leading destination for ease of doing business for SMEs. It additionally points out that free zones such as Dubai Internet City have played a key role in contributing to the UAE’s status as a favoured business hub. In line with the UAE’s vision to support SMEs, DIC will continue to offer state-of-the-art infrastructure, business assistance as well as incubation services to attract new tech startups to the region.”

VESSEL SCHEDULES FROM MAJOR SHIPPING LINES NOW ON DUBAI TRADE

Technology for business

Upgrade your performance SanDisk Corporation has announced an affordable, easy-to-install SSD caching solution that lets consumers significantly improve their desktop computer’s performance.

T

he SanDisk ReadyCache, solution, which will be available in the Middle East market in November 2012, can boost a desktop computer’s boot, shutdown and application launch times; allowing consumers to enjoy a more responsive computing experience, while utilising their existing hard drive’s storage.

The SanDisk ReadyCache product is a performance enhancing caching solution that combines a 32 gigabyte (GB) 2.5-inch SSD that resides alongside a desktop computer’s hard drive with ExpressCache software by Condusiv Technologies. The software, sold exclusively by SanDisk, is easily downloaded from the SanDisk website and can be installed on any desktop PC running Windows 7 operating system. After installing the SSD and software, the SanDisk ReadyCache solution’s advanced caching algorithms automatically manage data by caching frequently used files to improve overall performance.

Enhanced features The SanDisk ReadyCache hardware and software solution enables up to four times faster boot performance than a standalone hard drive, letting consumers boot their computer quickly and shut down the system in moments. The caching solution launches applications up to 12 times faster, which is especially useful during gaming, business and multimedia applications.

Unlike most SSD caching solutions, the SanDisk ReadyCache solution can pull data from multiple hard drives, enabling a consistent performance improvement when utilising more than one hard drive.

The solution supports hard drives with any amount of capacity so users can enjoy maximum storage space. All data that resides in the cache also resides on the primary storage, which helps prevent data loss if the caching solution is later uninstalled. The caching solution enables consumers to smoothly run simultaneous applications, ideal when multitasking.

With the SanDisk ReadyCache solution, consumers don’t need to replace their existing hard drive, clone their operating system, perform lengthy installs or migrate data. The product comes with an installation kit that includes a SATA 6Gb/s cable, a 3.5-inch mounting bracket and screws; and the software is simple to download and install. The solution allows consumers to enjoy the fast performance of a new computer without paying for an entire system.

“The SanDisk ReadyCache is an easy, affordable way to turbo-charge a desktop computer,” said Kent Perry, Director, Product Marketing, SanDisk.

“Our new SSD caching solution lets consumers enjoy the performance

62

November 2012

SME ADVISOR Middle East

benefits of frequently used data coming from an SSD while retaining the storage capacity of their hard drive. It is an ideal combination of the benefits of an SSD and hard drive,” Kent adds.

SanDisk Solid State Drives SanDisk offers a full portfolio of SSD products for the retail, OEM and enterprise channels.

In the retail channel, along with the SanDisk ReadyCache solution, SanDisk offers the SanDisk Extreme SSD, which features maximum performance for gamers and other heavy computer users.

OEM products include the U100 SSD for cost-effective performance and customisable form factors, the X100 SSD featuring the improved performance and storage capacity for desktop and notebook PC manufacturers, and the SanDisk iSSD integrated storage device for an embedded SSD SATA form factor. All models are available as standalone SSDs or dual drive caching solutions.

For the enterprise channel, Lightning SSDs provide the industry’s widest array of flexible cloud and data centre system design solutions.

The drives deliver dramatic I/O performance, predictable performance and reliability.

PRESENTS

STARS OF BUSINESS

AWARDS & SUMMIT 2012

Do you have what it takes?

5th December 2012

For a chance to be celebrated as one of the region’s top SMEs, enter your nomination at: www.smeadvisor.com/awards2012 Free registration for SME Advisor Stars of Business Summit 2012 at: www.smeadvisor.com/awards2012/register

EXCLUSIVE TELECOM PARTNER

INSURANCE PARTNER

STRATEGIC PARTNERS

KNOWLEDGE PARTNERS

BUSINESS COMMUNITY PARTNER

SUPPORTING MEDIA PARTNERS

PUBLISHER

FOR SPONSORSHIP ENQUIRIES, PLEASE CONTACT: richard@cpidubai.com, chris@cpidubai.com FOR NOMINATION ENQUIRIES, PLEASE CONTACT: mikeb@cpidubai.com, joumana@cpidubai.com

Technology for business

Supporting your legacy Cambium Networks has unveiled its PTP 810i All-Indoor solution, a modular, point-to-point (PTP) indoor wireless backhaul solution designed to support native Ethernet and TDM applications.

I

deal for use in high-power, indoor environments where long distance support and spatial diversity are required, the addition of the PTP 810i solution will grow Cambium’s existing PTP 810 family of licensed microwave products, offering service providers and network operators a highly flexible, scalable and cost-effective hybrid solution as the market evolves to support packet-based, VoIP systems.

64

November 2012

SME ADVISOR Middle East

Many industries have been slow to move to all-IP platforms due to the potential difficulties and costs of transitioning their TDM hardware to all IP-based systems. With the PTP 810i, companies can now use a single, software-based platform to support their legacy systems during upgrades and avoid the pitfalls of having to rip and replace systems already in service. The platform’s modular nature allows for flexibility and scalability, as well as easy integration with legacy systems so users can choose the interface that best suits their needs. Ideal for applications in industries such as public safety, utilities, railroads and telecommunications. The PTP 810i helps users future-proof their communications infrastructure to grow and change with a company’s evolving needs for Internet connectivity.

“Customers today are demanding increasing access to bandwidth, and networks must have the flexibility and scale to provide reliable broadband access without interference, outages or connectivity challenges,” said Graham Owen, Regional Sales Director MEA and Turkey, Cambium Networks.

“As the market is in a state of change, in which both TDM and Ethernet solutions are the norm, we’ve

made it a priority to be a resource to those who are looking to make a cost-effective transition. The PTP 810i allows Cambium’s customers to choose an agile, high-powered solution that supports the multimedia communications applications businesses demand.”

Delivering up to 477 Mbps, cross polarisation interference cancellation (XPIC) enabled throughput and operating over Federal Communications Commission (FCC) and Industry Canada (IC) authorised 6 and 11 GHz licensed bands, the PTP 810i consists of a rack-mountable Indoor Radio Frequency Unit (IRFU) and Modular Modem Unit (MMU) that supports T1/E1, STM-1 and Ethernet on a single platform. This architecture allows customers to transition to IP systems without cost- and time-intensive labour or expenditures for physical re-routing. With high system gain and support for spatial diversity, the PTP 810i also offers XPIC functionality by utilising both horizontal and vertical polarisations in the same channel, doubling throughput capacity without increasing channel bandwidth. In addition, the PTP 810i lowers operational costs and can be configured to the unique specifications of each deployment.

OpenThinking www.openthinking.ae

Technology for business

Introducing the smart scanner PFU, a Fujitsu company, announces the MEA launch of ScanSnap S1300, a portable scanning device that also allows users to easily manage and organise their documents.

F

ujitsu subsidiary PFU Imaging Solutions Europe released the new accelerated ScanSnap S1300i, taking its Scan-toMobile and Scan-to-Cloud strategies to the next level. Having introduced Scan-to-iPhone/iPad functionalities last November, PFU now also offers Android users the opportunity to transfer documents directly to their Android SmartPhones and tablet devices at the touch of a single button with new Scan-to-Cloud function. In the ScanSnap Quick

Menu, documents are delivered directly to cloud services such as Evernote, Google Docs, Salesforce, SugarSync and to the popular Dropbox cloud service. The ScanSnap S1300i scans up to 50% faster than its predecessor model at 12 pages per minute (A4 color, 150dpi, both sides) and can be powered either via USB cabling for mobile use or with AC power.

The product is geared towards the user who does not rely on day-to-day scanning, but is however, looking for an easier and smarter way to organise and manage their scanned documents. “It’s designed as more of a productivity tool than a scanning device. If you’re working at an office where you have very sporadic scanning requirements and you’re not an expert, you can get these tasks done very easily and quickly, and convert them to Word or Excel file, or even scan directly to email or the cloud,” says Paul Brown, Partner Manager, Middle East at PFU. There are three versions of the device; one completely powered by USB designed for on-thego use, a second device with a power adopter option and finally a full-sized desktop model, which requires more power. All of these decives use one uniform interface and application which can be downloaded from the App store to be used on all iPhone and Android devices.

“Scanning technology is an area that’s growing very fast. We still feel that here in the Middle East, there is room for growth as desk scanning hasn’t been adopted on a wide level. We also have plans to create an Arabised interface for the software for this technology. So, with all of this going on, it makes sense for us to market this product in the Middle East,” says Paul.

In terms of price, ScanSnap, will start in the range of AED 1,000 and will be available through the company’s distribution and reseller partners.

However, Paul sees the value proposition to be very convincing, especially among SMEs who are looking for more simple, smart and flexibly solutions that will save them time. “If you look at the traditional way people scan, the use is very limited, you just get an image file. With ScanSnap, you get new technology that lets you easily manage and organise all of the documents that you scan. It’s an extremely effective solution available in a box, that provides flexibility and time saving for companies, especially a great value proposition for SMEs,” Paul adds.

The device was recently unveiled in Dubai at GITEX Technology Week 2012, and has already seen a strong level of adoption in the US, Europe and Japan in recent years, with an estimated 1,000 devices sold worldwide daily.

UNEXPECTED SAVINGS POTENTIAL WITH MANAGED DOCUMENT SERVICES AND TASKALFA DEVICES.

With KYOCERA Managed Document Services (MDS) you can reduce your output costs by up to 30%*. And you can make even more eff icient use of KYOCERA MDS when combining it with the very reliable and f lexible TASKalfa 2550ci. *source: Photizo Group

TASKalfa 2550ci Up to 25 pages per minute in colour and b/w Excellent image quality Up to 2 GB RAM + 160 GB HDD memory and storage HyPAS™ software development platform Standard network printing and scanning in colour

KYOCERA Document Solutions Middle East Dubai Internet City, Bldg. 17, Office 157 P.O. Box 500817, Dubai, United Arab Emirates Tel: +971-04-433-0412 Fax: +971-04-423-1944 http://www.kyoceradocumentsolutions.ae

KYOCERA. COUNT ON US. KYOCERA Document Solutions Middle East - www.kyoceradocumentsolutions.ae KYOCERA Document Solutions Inc. - www.kyoceradocumentsolutions.com

66

November 2012

SME ADVISOR Middle East

TUESDAY, DEcEmbEr 4 ArmAni Hotel DubAi, burj KHAlifA

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

Submit your Nominations Now SPONSORSHIP OPPORTUNITIES AVAILABLE TABLE BOOKING AND FURTHER INFORMATION

MARKETING MANAGER | Carole McCarthy +971 4 440 9157 | carolem@cpidubai.com

NOMINATION ENQUIRIES

EDITORIAL | Melanie Mingas +971 4 440 9117 | melanie@cpidubai.com

SPONSORSHIP OPPORTUNITIES

PUBLISHING DIRECTOR | Raz Islam +971 4 440 9129 | raz@cpidubai.com COMMERCIAL DIRECTOR | Michael Stansfield +971 4 440 9128 | michael@cpidubai.com

editor’s ChoiCe Category • Infrastructure Project of the Year

TO SUMBIT YOUR NOMINATIONS AND FOR MORE INFORMATION VISIT

Gold Sponsor

Supporting Sponsor

Category Sponsors Endorsed by:

Organised by:

Technology for business

Payments made easy Network International launches SME in a Box, a packaged card acceptance solution, which enables SMEs to accept cards as a means of payment.

T

he startup kit for the solution will be offered literally in a box, containing a merchant application form, a bank account opening form, a configured point of sale (POS) terminal for plug-and-play operations (once approved), branded POS rolls, training manual and e-commerce payment integration to SME website, in addition to addendums for value added services.

“Typically, SMEs have been hesitant to move from cash-only payments because they do not fully recognise that card payment systems are an effective way of cutting down on operating costs and increasing profitability,” says Bhairav Trivedi, CEO, Network International.

“Network International has the capability to develop custom-designed solutions for various organisations and we are pleased to extend our pioneering technology to the benefit of the SME sector,” he adds.

The program will provide SMEs fully secure card acceptance instantly, delivered through modern dial-up or wireless POS terminals and secure payment gateway. It will also enhance the current offering through new planned technologies, and introduce value-added services, to enable SMEs to generate greater revenues.

“The SME in a Box concept has been developed to enable instant card payment

acceptance at small and medium businesses and enhance their capabilities to receive cashless payment,” says Paolo Zambonini, Executive Vice President, Products & Marketing, Network International. “By providing instant e-Commerce payment solutions in both the physical and online environment, SME in a Box will prove to be a significant differentiating factor in the functioning of the SME sector,” he adds.

SMEs who wish to apply for the Biz-In-ABox program need to register with Network International. Once the required documentation has been completed and KYC (Know Your Customer) checks performed, an SME merchant and bank account will be setup and activated for business, and the merchant will receive the startup kit. Card payments collected will be funded into the SME bank account on the next working day, and the merchant will receive a complete statement of transactions done the previous day via email.

Enhanced device control Fortinet launches FortiOS 5.0, an advanced security operating system that is the foundation for all Fortinet FortiGate integrated security platforms.

This new release provides more security, intelligence and controls to help enterprises be better protected against today’s advanced threats and enable more secure BYOD environments. Fortinet provides solutions for enterprises of all sizes to help protect and manage their networks in light of fundamental changes in both the nature of attacks targeting them, as well as how users are accessing the network.

The company has focused on integrating advanced identification and management of user and device behaviour, including reputation-based policies, better botnet detection and protection and inspection of encrypted traffic.

In addition to the new FortiOS 5.0 operating system for FortiGate devices, Fortinet has also announced FortiManager 5.0, FortiAnalyzer 5.0 and FortiClient 5.0 to address the need for increasingly sophisticated management and analysis of the network infrastructure and

68

November 2012

SME ADVISOR Middle East

endpoint devices in enterprise, carrier, MSP and SME environments alike.

Fortinet is adding more than 150 features and enhancements to FortiOS 5.0. As a result, enterprises of all sizes will be better equipped to defend themselves against new advanced threats and manage and protect their network against an influx of new types of mobile devices and applications. Key benefits include more security to fight advanced threats, more control to secure mobile devices and BYOD environments by identifying devices and applying specific access policies and more intelligence with automatic adjustment of role-based policies for users and guests based on location, data and application profile.

FortiManager 5.0 As a centralised, single-paneof-glass management platform for all Fortinet devices, the new FortiManager 5.0 features

significant improvements tailored for enterprises and service providers the ability to manage physical and virtual security devices using a single Web-based GUI. The solution also includes more granular administrative profiles and greater ease of use, enhanced provisioning capabilities for large-scale rollouts and improved reporting and analysis with multi-frame display, as well as drag-and-drop policy between rule bases and frames.

consolidated configuration and universally applied reporting across multiple FortiAnalyzer systems.

FortiAnalyzer 5.0 The FortiAnalyzer family of logging, analysing and reporting appliances securely aggregates log data from Fortinet devices and other syslog-compatible devices. The new FortiAnalyzer 5.0 includes significantly improved data visualisation and analysis, consolidated reporting for all FortiOS-based devices and endpoints, management of both physical and virtual appliances for

FortiClient 5.0 FortiClient provides anytime, anywhere endpoint security for Windows and Macintosh devices.

Some of the improvements include better enforcement of security policies in off-net situations to ensure adherence to corporate policies when not connected to the network and enhanced integration with FortiGate devices to simplify remote VPN provisioning for ease of use.

SIGN OFF

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

T

Joumana Saad CPI Business

70

November 2012

he UAE now has another metric under its belt to enhance its image as a regional business hub. The country has improved its ranking in the World Bank’s Doing Business Report 2013 to 26 among 183 countries up from 33 in 2012. The World Bank has also adopted the business registration and licensing procedures in Dubai as the standard for the ease of starting a business in the UAE. This is signficant as the report is a key indicator for the expected flow of foreign direct investment. The UAE has been taking serious measures this year to further develop and simplify its business environment, and I expect much more progress to be achieved within the next year.

GITEX Technology Week 2012 also demonstrated the important role the UAE plays in connecting economies in the wider MEA region.

The annual ICT exhibition had its biggest year ever with a record turnout and a sharp increase in international visitors. We had the opportunity to participate as a partner at the new SME Zone and talk to so many SMEs from around the region, who were very excited to showcase their latest technologies. For detailed coverage of GITEX and the new SME Zone, please see page 54 of this issue.

Last month, we also partnered with the tri-annual TECOM SME Builder, which gathered SME owners and aspiring entrepreneurs. The event identified practical solutions to crucial issues faced by SMEs with a view to improving long-term profitability.

SME ADVISOR Middle East

In addition, attendees were able to take part in speed networking with experts from various industries and get useful advice in the process.

Binod Shankar, Managing Director, Genesis Institute gave an important presentation during the event entitled Dispelling Myths in SME Finance, which argued against common perceptions that business planning is a waste of time, auditing is a luxury, sales is the most important number and that SMEs cannot get funding, and hence, growth is difficult.

As finance remains issue number one for SMEs, new developments in the UAE have been announced which aim to provide more clarity.

Dubai Chamber has just launched its Guidelines for Enhancing SME Finance, a detailed guide that contains insights on best practices, corporate governance and other areas to help prepare SMEs in seeking financing from the banks. Speaking to a number of SME owners who attended the launching seminar, they welcomed this important development, but at the same time stressed the need on the part of the public sector to take a more active role in encourgaing local banks to do more to serve SMEs financing needs.

There will be a number of important events taking place in the region in the coming months, including the World Economic Forum Summit on the Global Agenda 2012, which will descend on Dubai 12th to 14th November.

The summit will gather over 800 members of the network to engage in interactive workshops and sessions and gain comprehensive

insight into the global, industry and regional agendas. Also, the Global Entrepreneurship Summit presented by Entrepreneurship Ventures of Arabia (GES-EVA) will take place at the Dubai World Trade Centre from 11th to 13th December. GES-EVA will deliver the UAE’s flagship platform for entrepreneurship across the Arab world. Offering key stakeholders clear insight into the regional new business climate, in a constructive and peer-topeer setting, GES-EVA provides entrepreneurs and SMEs with access to institutional and private investors seeking to explore new business alliances.

PayPal has also announced that it will be officially launching in the Middle East on 14 th November.

The company also recently announced their partnership with Aramex, which will no doubt be crucial in driving the amount of online transactions and improving on its services and customer satisfaction.

I expect this announcement to have a big impact on e-commerce in the SME space and the regional business communtiy at large, as the company has a solid reputation as being a facilitator of secure online payments. This is still a developing area for consumers as online spening in the UAE and region remains low compared to Western markets. However, bringing in a trusted name like PayPal has the potential to really shake things up and drive demand for ePayment solutions.

We are the new AIG

Bring on tomorrow www.aig.com AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties. Insurance products may be distributed through affiliated or unaffiliated entities. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

FLEXIBLE WORKING CAPITAL SOLUTIONS ADCB BUSINESSEDGE ENTERPRISE CREDIT As your business grows, you need to keep pace with the increasing financial demands involved in making it a success.

ADCB BusinessEdge Enterprise Credit is a flexible business banking product created to take care of your working capital and short-term funding needs.

Key features: • Working capital facilities available to SMEs having annual sales turnover up to AED 100 million • Credit facility up to AED 25 million • Easy documentation and quick approval • Flexible collateral requirements, with residential/commercial properties, SBLC, cash/cash equivalent accepted as collateral • Shari’ah compliant products also available For more information on ADCB BusinessEdge Enterprise Credit, please SMS ECREDIT to 2626 or visit www.adcb.com Terms and Conditions apply. Credit at sole discretion of the Bank.