SME Advisor Middle East | February 2013

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Up close and personal Our Stars of Business winners tell all about their entrepreneurial journeys.

Empowering women We look at the economic impact of integrating more women into the world of business.

Regulating competition How SMEs should comply with the provisions of the new UAE competition law.

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Issue 87 FEBRUARY 2013 WWW.SMEADVISOR.COM

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+ PLUS

The art of export pricing Why accurate pricing is of paramount importance to exporting.

Balance and business How work-life balance has become a key motivating factor for employees.

DUBAI SME100

In an exclusive interview, Abdul Baset Al Janahi, CEO, Dubai SME, shares his expectations for the second cycle of the Dubai SME 100

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Take a deep breath

W

hen discussing the flow of business in the UAE and across the GCC, the tide of frantic can quickly overlap and replace the smaller waves symbolising an anemic business pace. If January did experience this stalled pace, February has allowed the sudden tsunami of business back through the gates. The major financial centres of the region are echoing whispers of back-to-business, as marketing budgets are approved and enforced, event schedules are beginning to crazily unfold and transactional activity is in full swing.

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 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 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

Time and time again, when speaking with fellow professionals, financial experts, business owners and senior management, the analogy of swimming arises; February has arrived and businesses are taking a deep breath, before submerging themselves entirely into the pools of production. As is custom, most SMEs won’t have an opportunity to resurface until Ramadan.

And yet when speaking with such people there is as smile when listing the never-ending inventory of deliverables 2013 – I’m told being busy is the right kind of headache.

So what have we selected this month to aid you with this submersion? The advisory is as varied as ever; regular columnist Dr. Ashraf Mahate discusses why accurate pricing is of paramount importance when it comes to exporting – something we encourage SMEs (or at least the medium sized portion of you businesses) to implement where possible, but of course to practice with caution, where necessary.

We also spoke with the man bestowed with the responsibility of driving the Dubai SME 100 initiative; Abdul Baset Al Janahi, CEO, Dubai SME, talks frankly about the expectations with the second cycle of the SME 100 rankings and how this year will see a bigger emphasis on innovation and human capital, as well as a continued focus on corporate governance, as a differentiating factor.

In the lead up to International Women’s Day (scheduled for March 8th) we take a closer look at the potential economic impact of integrating millions of educated women into the world of business.

The Middle East is one region that is leading the developing world with initiatives to accelerate this process, but the gender gap still exists and implementing and enforcing policies is easier said than done. Read pages 38 – 40 for the full analysis.

As with the beginning of every new year, businesses are tasked with the internal policies of analysing employees – we have given a breakdown of how best to mange and retain the talent within your workforces, as well as to shed some light on the factors that will aid best with boosting employment motivation.

As promised in last month’s Editorial, we have provided coverage of our Stars of Business Power Lunch: Meet the winners event, which was held January 16th. The theme was the celebration of success, while at the same time the event provided the speakers a platform to share their personal stories of hard work, success and lessons learned. The diversity of the panel of speakers also made for interesting discussion, as each of the companies represented were at a different stage of growth.

Until next month…

Registered at IMPZ PO Box 13700, Dubai, UAE

Mike Byrne Senior Editor

Tel: +971 4 440 9100 Fax: +971 4 447 2409

Printed by Al Ghurair Printing & Publishing LLC © Copyright 2013 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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SME ADVISOR Middle East

February 2013

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Contents Issue 87 February 2013

BANKING FOR BUSINESS

28

26 | Building that bankability We outline how to increase your appeal to bank financiers.

OPPORTUNITIES

28 | Ready for round two In an exclusive interview with SME Advisor, Abdul Baset Al Janahi, CEO, Dubai SME, shares his expectations for the second cycle of the Dubai SME 100.

32 | Expansion made easy As the UAE continues to attract entrepreneurs and SMEs, companies like Regus are seeing a growing demand for their flexible workspace and services in the region.

SUCCESS SERIES

Dubai SME 100

34 | Meet the winners

In an exclusive interview, Abdul Baset Al Janahi, CEO, Dubai SME, tells us what’s in store for the second cycle of the Dubai SME 100

Shoptalk

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

FINANCE FOCUS The latest developments and offerings on the SME financing front.

42 | Talent management

SME about town

18 | Events

A round-up of the key events being attended

by SME leaders in the UAE.

Trade

22 | The art of pricing Dr. Ashraf Mahate of Dubai Exports explains why accurate pricing is of paramount importance when it comes to exporting.

February 2013

SME ADVISOR Middle East

ENTREPRENEURSHIP

38 | Women in the workforce Joumana Saad takes a closer look at the potential economic impact of integrating millions of educated women into the world of business.

12| What’s new?

4

The Success Series Power Lunch event put the spotlight on three Stars of Business winners who shared their success stories and insights with a wider group of SME owners.

MANAGEMENT

As a result of technological advancements, more and more companies are rediscovering the added value of using competency-based management models.

LEGAL

46 | Regulating competition Waldo Steyn of Al Tamimi & Co. outlines how SMEs can ensure that they focus on and comply with the provisions of the new UAE competition law.

38

34

INDUSTRY WATCH

50 | Exporting growth Dubai Chamber’s annual 2012 report reveals the value of member exports rising nine per cent compared to the previous year.

firms in their adoption of sustainable business practices, says the Association of Chartered Certified Accountants.

TECHNOLOGY FOR BUSINESS

51 | Balance and business

54 | Tech news

A recent survey conducted by Bayt.com and YouGov, reveals that UAE employees consider a good work-life balance to be a key source of motivation.

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

52 | Industrial expansion

62 | What’s Next?

The growth of the industrial sector has reflected in the strong contribution of petrochemicals and down-stream products to the economy.

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.

53 | SMEs and sustainability

Sign off

Policy makers, regulators and finance professionals must assist in guiding smaller

46

52

SME ADVISOR Middle East

February 2013

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shoptalk UAE

Consumer friendliness index launched

T

he Commercial Compliance and Consumer Protection (CCCP) sector in the Department of Economic Development (DED) in Dubai, has announced the first-ever index of businesses in Dubai classified on the basis consumerfriendliness. Juma Al Majid Automobiles earned the highest marks in both the overall rating and the automobiles category, while Lulu Hypermarkets stood top in both the hypermarkets and electronics categories.

The indexing was based on customer service levels in 24 leading outlets in the hypermarkets, automobiles and electronics categories and a survey of 1,700 consumers in Dubai.

The key criteria in the classification were: consumer satisfaction and consumer perception of the business (60%); the number of consumer complaints received and the time taken by the business to solve the complaint (20%); and a comparative analysis of product prices in the outlet and its competitors (20%).

The annual index focused on automobiles, electronics and hypermarkets, since these three categories account for more than 60% of the consumer spending. The outlets chosen were also those with the biggest market share in their respective sectors.

Mohammed Lootah, Deputy Chief Executive Officer of CCCP during a briefing event.

According to the survey findings, Carrefour stood top in terms of customer loyalty in hypermarkets. With a strong preference among 90% of the consumers, it scored the highest with 69% in consumer loyalty in the electronics sector.

Al Nabooda Automobiles enjoyed the highest level of customer satisfaction in car sales, while Al Tayer Automobiles and Arabian Automobile shared the top spot in after-sales service.

Among hypermarkets, Lulu earned the highest customer satisfaction rate while E-max got the highest consumer satisfaction in the electronics sector. The survey also showed 89% of consumers go back to their car dealer for routine service.

Dubai eGoverment to provide services to EIPA

L - R: HE Major General Dr. Abdul Quddus Abdul Razak Obaidli, President of EIPA, and Wesam Al Abbas Lootah, Assistant Director-General, Dubai eGovernment

Dubai eGovernment has announced that it has recently signed a Memorandum of Understanding (MoU) with Emirates Intellectual Property Association (EIPA), as both parties reaffirmed their commitment to collaborate on various initiatives and leverage

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SME ADVISOR Middle East

Dubai eGovernment’s advanced infrastructure to enhance the delivery of eServices.

The MoU was signed by Wesam Al Abbas Lootah, Assistant DirectorGeneral, Dubai eGovernment, and HE Major General Dr. Abdul Quddus Abdul Razak Obaidli, President of EIPA, on the sidelines

Launched earlier this year, the consumerfriendliness index aims to promote service excellence, competitiveness and cordial relations between consumers and retailers while also building awareness on consumer rights and protecting them in line with the DED’s strategic objective to encourage best practices in the retail sector.

“Consumer satisfaction and perception carried the biggest weight, as the index is a measure of consumer-friendliness. The time taken to resolve complaints was considered, as it indicates the customer relations and culture of the retail outlet,” said Mohammed Lootah, Deputy Chief Executive Officer of CCCP. “The index will be a reliable benchmark for businesses in enhancing customer service and customer loyalty. We are looking at expanding the survey next year by introducing more categories, thus also involving more outlets and consumers,” added Lootah.

The Department of Economic Development also held introductory workshops with the owners of companies and establishments covered by the classification to introduce the criteria, and elicit their views in order to make the process as accurate and comprehensive as possible.

of EIPA’s annual ceremony at the Dubai Police Officers Club, during which strategic partners and other high-profile figures who have contributed towards intellectual property rights (IPR) protection and eradication of software piracy in the UAE were honoured.

Both parties have agreed to explore various ways for Dubai eGovernment to implement its eHost solutions and services to support the development of EIPA’s official website. eHost provides effective solutions to hosting government websites and web portals across an advanced, safe and reliable online network environment. Through the eHost services, government and semigovernment entities are relieved of the burden of establishing an independent web presence on their own and are offered unified webrelated standards for all government websites and Web portals in Dubai.

Wesam Lootah explained that the signed MoU is a crucial

step forward to realise their strategic goals and lead Dubai’s eTransformation towards an integrated knowledge-based digital society. He lauded EIPA for their efforts to support the country’s national plans towards building a secure digital environment based on creativity, innovation and reliability by raising greater awareness among individuals and communities about IPR and software piracy. eHost is one of the shared services offered by Dubai eGovernment to promote the eTransformation of Dubai and create the necessary infrastructure to ensure its success. It is one of the effective solutions for hosting governmental and semigovernmental websites, from small and medium websites, web forums, emails, chat rooms and news to larger web portals and websites linked to sophisticated ePay systems and other electronic services.

UAE

December licences rise six per cent

T

he Dubai Department of Economic Development (DED) recently reported that 1,372 licences for various types of businesses were issued in Dubai during December 2012, marking a six per cent increase from the 1,297 licences issued in December 2011. These figures reflect robust growth and stability across key economic sectors in the emirate. A majority of the new licences issued, compared to the same period in 2011, were in the tourism sector (42%), followed by the professional (10%) and commercial (five per cent) sectors.

The increase in licences relates to a higher level of interest in commercial and professional activities among businessmen and investors in Dubai. Commercial licences accounted for 73% of the total licences issued in December 2012, followed by professional (25%), industrial and tourism (one per cent each) licences.

“The DED’s strategy has contributed to growth across a number of vital sectors. Recent statistics have revealed the high level of interest and impact the Emirate of Dubai has generated among entrepreneurs and businesses regionally and internationally,” said Saeed Matar Almarri, Deputy CEO, Business Registration and Licensing Sector in the DED.

Commercial licences accounted for the majority of licences issued in December 2012 by the DED’s Business, Registration and Licensing Department (BRL).

Almarri noted that the investment climate in Dubai presents the ideal destination to start a business and create partnerships. He said: “The DED seeks to overcome obstacles, facilitate investment inflows and boost economic activity in Dubai by providing a full range of solutions and services with added value for entrepreneurs and investors.”

The total number of licences amended in December 2012 was 5,416, while the total number of renewed licences reached 6,929.

The total number of business registration and licensing (BRL) transactions reached 48,025, compared to 42,579 in December 2011, an increase of 13%.

The total number of trade names issued in December 2012 reached 5,364, a 14%

increase compared to December 2011 (4,922), and the number of initial approvals increased 14% to 2,467 from 2,158 in December 2011.

The total number of commercial activities licensed in December 2012 was 3,161, with general trade leading the list of the top ten licensed activities (221 licences) followed by dyes and paints (85 licences), tiling of floors and walls (84), carpentry and flooring (78), installation of suspended ceilings and light cutouts (73), sanitary extensions and wares (71), installation of air conditioning systems, ventilation and air purification (69), perfumes and cosmetics (67), readymade garments (66), and textiles and fabrics (65).

The number of professional activities licensed in December 2012 reached 805.

Special-purpose facility activity led the list of the top ten licensed activities in this category with 53 licences, followed by cleaning services for buildings and residences (40), restaurants, coffees, sewing women’s clothes, beauty and personal care centre, sewing and embroidery for women, designing computer systems, hairdressing for women, and wiring repair and electrical installation were the other leading activities in this category.

The Business Year returns to Dubai

L - R: HE Sami Al Qamzi, Director General of DED; Betul Cakaloglu, Regional Director, TBY, HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Economic Sector Committee, President of Dubai Civil Aviation, and Chairman & CEO Emirates Airlines Group; Jason J. Nash, Editorial Director of TBY, and Fahad Al Gergawi, CEO of Dubai FDI, during the launch event for the Business Year Dubai report in 2012.

Dubai FDI, the foreign investment office in the Department of Economic Development (DED) in Dubai, and The Business Year (TBY) have recently renewed their partnership to produce The Business Year: Dubai 2013, the second annual edition of TBY’s in-depth analysis of economic opportunities in Dubai.

“Our partnership with The Business Year will help bring out high quality economic intelligence on Dubai for the benefit of businesses and investors worldwide,” added Al Gergawi. “The business environment in Dubai has seen remarkable changes in recent years.

With the determined bid to host the World Expo 2020 in Dubai and ambitious initiatives such as the Mohammed Bin Rashid City, economic activity in the Emirate will gain further momentum in 2013 and the years to come,” commented Fahad Al Gergawi, Chief Executive Officer, Dubai FDI. The key focus in the 2013 edition will be on the Emirate’s increasingly diverse economy, featuring advancements in the sectors of finance, energy, ICT, transportation, health care and sustainable technology. At over 200 pages, The Business Year: Dubai 2013 will be among the most comprehensive English language reviews of Dubai’s economy and its top business leaders available internationally.

“TBY is extremely happy to return to Dubai to work on our second publication,” said Regional Director, Betül Çakaloglu. “As a stable regional crossroads with a diverse economy, the world looks to Dubai as a premier location for sustainable and profitable investment opportunities.”

Dubai has taken advantage of the centrality of its location to become a global hub whose influence extends well beyond the GCC. In the coming year, the Emirate is set to embrace an expanding range of economic and social reforms that will support its leadership in the region.

Tremendous growth in the Emirate’s healthcare sector has sparked the increasing popularity of Dubai as a destination for medical tourism.

Meanwhile, the world’s largest conferences are returning to Dubai, as the international community sees it as a prime destination for collaboration and presentation.

SME ADVISOR Middle East

February 2013

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shoptalk EGYPT

Addressing Egypt’s unemployment

B

ayt.com attracted 70,000 visitors and 13 employers to its third Virtual Job Fair (VJF) in Egypt. The event, held entirely online from 6th to 14th January, saw participation from seven different countries, with 130 open positions for job seekers to apply to.

The Virtual Job Fair allowed jobseekers and employers the opportunity to interact though a flexible online platform, giving access to traditional job fair facilities but with the added convenience of being able to attend from anywhere

within the world. Held over seven days, the Virtual Job Fair was visited over 70,000 times.

“The convenience, flexibility and cost-efficiency of the VJF concept are in line with Bayt.com’s commitment to assisting job seekers and employers alike in their recruitment needs. This latest VJF is the 15th that we have held in the MENA region, and we look forward to holding further events in more countries and for more industries,” said Suhail Masri, VP of Sales, Bayt.com.

Mohamed Atallah, the Strategic Projects Manager at Tabuk Pharmaceuticals, which was named Diamond Sponsor of Bayt.com’s VJF, said: “Sharing in Bayt’s Egypt Virtual Job Fair helped us find the suitable candidates from the Egyptian recognised abilities’ pool and supported our business expansion in the MENA region.”

The Bayt.com VJF presents a unique concept; jobseekers are able to fully interact with potential employers through a virtual environment, styled to look like a real job fair. Using a range of digital tools, such as chat rooms, webcasts and webinars, jobseekers and employers can exchange information. Jobseekers can search for available jobs and can submit their CVs, while employers can interact through virtual booths where they can share presentations, reports, and information about their companies.

Participating employers benefited from increased brand awareness and access to Bayt.com’s extensive portfolio of jobseekers. There are minimal resource requirements in return for maximum exposure, meaningless costs and a higher return on investment than with a traditional job fair.

Pepsico’s talent acquisition team, who had an event-sponsor booth at Bayt.com’s VJF, said: “A virtual employment fair is a very new and creative way that PepsiCo’s Talent Acquisition team was very happy to be a part of. It helped us in attracting applicants from all over the Middle East and African region and specifically Egypt without the need of being physically in one place. We believe that Bayt.com, through these virtual events, will lead to a paradigm transformation in how both companies and applicants are approaching employment fairs.”

Fuelling growth through ICT Ericsson has placed Cairo on its latest Networked Society City Index report, which draws a correlation between ICT maturity and the ability to use ICT to benefit business.

Ranked 17, Cairo was one of two Middle East cities included in the list, while New York, Stockholm and London took the top three positions.

The report lists some of the positive effects that ICT has on innovation and entrepreneurship. Firstly, ICT leads to an increased number of entrepreneurial opportunities. For example, it enables new product innovations such as music and video streaming, e-Commerce and cloud services.

Secondly, ICT improves access to markets by enabling entrepreneurs and specialised niche firms to reach larger geographical markets. Lastly, ICT reduces the cost of transactions between firms by minimising the need to be located geographically close to suppliers, partners and customers.

“This report builds on our previous Networked Society City Index reports that examine how ICT can benefit a city and its citizens from an economic, social and environmental perspective,” said Anders

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SME ADVISOR Middle East

Lindblad, President, Ericsson Region Middle East and North Africa. “The report delivers excellent insights into how change mechanisms in cities such as Cairo can be leveraged to help future generations create positive triple bottom line benefits for society.”

The positive correlation between ICT maturity and economic development is widely supported by numerous academic reports and case studies. For example, data issued

by Ericsson earlier this year showed that quadrupling the speed of broadband in Egypt has the potential to contribute an additional 0.6%, or approximately USD 1.377 billion, to the nation’s GDP. Patrik Regårdh from Ericsson’s Networked Society Lab said: “We see the individual,

rather than city institutions or businesses, as the drivers of development resulting from ICT maturity. Governments follow by adapting to citizens’ changing behaviour, while businesses primarily adopt ICT innovations to increase internal efficiency.

More importantly, government decisions help steer the business sector’s ICT development.

Therefore, changes in policy, regulation and planning, paired with research and support for taking risks and funding, are some of the key factors for driving progress. These factors are crucial in helping organisations of all sizes to connect, collaborate and compete more effectively.”

Other cities included in the index were: Beijing, Buenos Aires, Delhi, Dhaka, Istanbul, Jakarta, Johannesburg, Karachi, Lagos, Los Angeles, Manila, Mexico City, Moscow, Mumbai, Paris, São Paulo, Seoul, Shanghai, Singapore, Sydney and Tokyo. Twenty-eight indicators have been used to measure the total benefits in the index for each city.

The indicators can be categorised into two dimensions: cities’ ICT maturity and benefits from ICT investments from both a social, economic and environmental point of view.

KSA

Improving management systems

Over 150 entrepreneurs and SME owners attended the event in Riyadh, which was organised by Potential.

R

epresentatives from the Centennial Fund, the Saudi Ministry of Commerce and Industry, Business Division of STC, the Saudi Industrial Property Authority (Modon), in addition to Aramex, Intel, and Google, gathered recently in Riyadh at a seminar, attended by more than 150 entrepreneurs.

The event was organised

by Potential and stressed on the necessity of helping SMEs in Saudi Arabia grow their businesses, diversify their offerings and compete efficiently in the market.

The importance of supporting SMEs in creating job opportunities for the youth and strengthening economic

growth through diversification of income opportunities were all points echoed by those who attended.

The participants noted how government institutions have begun to adopt training programmes for SMEs through enlisting the help of companies like Potential, which has partnered with over 20 leading international and regional organisations to offer practical support to SMEs. The Business Division in STC, through the worksheet it presented on cloud computing, stressed on its ability to reduce operating costs of SMEs, as well as the innovation of many packages allocated to this category of entrepreneurs.

Such services and offerings contribute directly to the SMEs businesses, through linking their facilities with their customers

OMAN

Trade opportunities in Oman With the intention of supporting the Oman Chamber of Commerce and Industry’s adoption of the ATA Carnet system, the Dubai Chamber of Commerce and Industry recently received a highprofile Omani delegation headed by HE Abdul Azeem bin Abbas Al Bahrani, Director General, Oman Chamber.

The delegation visited the Dubai Chamber head office to discuss procedures and requirements for implementing the international customs document system, known as a passport for goods.

HE Hamad Buamim, Director General, Dubai Chamber, stated that this visit by the Oman Chamber delegation will not only help drive business growth between the two neighbouring countries, but will also lead to further cooperation and sharing of ideas and services between regional chambers. This will also create a favourable environment for trade and business to grow and prosper in the entire region, he said.

Atiq Juma Nasib, Senior Director, Commercial Services Sector, Dubai Chamber, apprised the

The Dubai Chamber of Commerce and Industry received a high-profile Omani delegation headed by HE Abdul Azeem bin Abbas Al Bahrani, Director General, Oman Chamber.

delegation with the functioning of the ATA Carnet system, which he said is a valuable tool that facilitates the duty-free and tax-free temporary import and export of goods for trade shows and exhibitions for up to one year.

He further stated that Dubai Chamber has been playing a leading role in promoting ATA Carnet in the region following the system’s successful launch in the UAE in April 2011. “This year through the end of October, Dubai Chamber issued 53 ATA Carnet documents, for goods worth a total value of AED 27 million,” he said.

The Senior Director of the Commercial Services Sector added that the implementation of the ATA Carnet system by Oman will allow businesses from both the countries to participate in trade fairs and exhibitions, and

around the world, via the latest communication technologies.

Mohamed Talaat, General Manager of EMC in Saudi Arabia, stated that EMC’s partnership with Potential’s SME Evolution Program is part of its ongoing efforts to provide the highest levels of commitment to the SMEs in Saudi Arabia.

“Our objective is not limited to meeting SMEs’ product requirements through our wide offerings, but also to help them to develop and grow their businesses, which would in return accelerate their growth and enable them to exceed their customers’ expectations,” said Talaat.

The attendees concurred that Saudi youth should be encouraged to start their own enterprises by providing them with the necessary skills, resources and funding.

will inspire GCC countries to adopt the system, which will ultimately help increase trade traffic within the region.

On their part, the visiting delegation lauded the role of Dubai Chamber in promoting trade relations between the business communities in Dubai and Oman, and expressed their willingness to adopt the ATA Carnet system which they said will directly help Oman boost bilateral trade ties with its neighbours.

The ATA Carnet is an important tool for businesses, as it allows the temporary admission of merchandise and goods, commercial samples and professional equipment and includes cameras, computers, musical instruments, vehicles, jewellery, clothing and medical devices, works of art and artifacts, items for use in fashion shows, horses participating in races and sound systems for use and display at trade shows and exhibitions.

The system not only saves time, money and facilitates most customs formalities through the use of a single document, but also allows the movement of business people and their representatives participating in trade fairs and directly helps in enhancing the country’s position as a global destination for business and investment.

SME ADVISOR Middle East

February 2013

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FINANCE FOCUS

BAHRAIN’S BANKING SECTOR IN FOCUS

The upcoming Euromoney Bahrain Conference will focus on current economic issues in the Kingdom.

E

uromoney Conferences will return to Bahrain on 5th of March for the second annual Euromoney Bahrain Conference, co-hosted by the Bahrain Economic Development Board (EDB). This year’s event, expanded to two days, will bring together over 300 high level local and international financiers, investors, policy makers and regulators to look at the role of Bahrain’s financial sector in the country’s economic progress and the development of the GCC wealth management industry.

Richard Banks, Regional Director for Euromoney Conferences said: “We are excited to be back in Bahrain, partnering again with the EDB, after a very successful event last year.

This year’s conference will look more closely at the kingdom’s economy as well as discuss the opportunities and challenges for the global and regional financial sector in the year ahead.

Euromoney will moderate the discussions and ask the most pressing questions to our high calibre lineup of participants.”

HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive

of the Economic Development Board commented: “The Euromoney Bahrain Conference 2013 will play a pivotal role in bringing to light the current challenges faced by the financial sector and discussing these issues with top Bahraini and international experts.

We welcome back Euromoney conferences and are happy to be co-hosting this event with them. Events such as the Euromoney Bahrain Conference are testament to Bahrain’s position as a financial centre.”

Confirmed speakers include: HE Kamal bin Ahmed, Minister of Transportation and Acting Chief Executive, the Economic Development Board (EDB), HE Rasheed Mohammed Al Maraj, Governor, Central Bank of Bahrain (CBB), Shaikh Mohamed bin Khalifa Al-Khalifa, Chief Executive, The Oil and Gas Holding Company (nogaholding) and MahmoodHashim Al Kooheji, Chief Executive Officer, Mumtalakat.

The conference will take place on the 5th and 6th of March at the Ritz-Carlton Hotel in Bahrain. More information can be found at www.euromoneyconferences.com/bahrain

Emirates money launches new website Emirates Money, a wholly owned subsidiary and the consumer finance arm of Emirates NBD, has announced the launch of its upgraded website (www.emiratesmoney.ae), which incorporates a range of user-friendly features.

Reflecting the company’s customer focus, the new website features enhanced navigation and search tools, which help users access information more quickly, while easily finding the best product solutions for their needs. Online calculators have also been incorporated into the new website, offering customers the opportunity to instantly compute their monthly installments or evaluate their interest payments.

The new website also features an Appreciation and grievances portal, which allows customers to offer feedback and flag any questions they may have about their accounts. This feature also enables Emirates Money officials to respond quickly and offer solutions to any possible issues.

Highlighting the benefits of the new site, Vikas Thapar, General Manager, Emirates Money, said: “We always seek new ways to enhance our customers’ online experiences, and make it easier for them to stay updated on the latest news and product information. We are very pleased to offer this new platform to assist our customers with finding the best possible solutions to their financing needs.”

The new Emirates Money website, which is compatible with most SmartPhones, has been designed with a completely new look and feel, and equal importance has been given to both content and navigation.

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February 2013

SME ADVISOR Middle East

Positive outlook for most GCC banks Fitch Ratings says the outlook for most banks in the Gulf Cooperation Council (GCC) region is stable, largely driven by the probability of sovereign support.

The ratings company also sees loan growth increasing in 2013, as confidence improves and infrastructure projects come on stream, stimulating the local economies.

However, much also depends on the global economy and regional unrest.

A gradual improvement is also expected in the profitability at GCC banks on rising fee income, lower impairment charges and cost control even though margins have been under pressure due to low interest rates and subdued volume growth.

Within the GCC, Fitch believes that problem loans have generally peaked and expects lower impairment charges in 2013, although significant legacy problems remain, notably in the UAE and Kuwait. Recoverability of these loans and related collateral values will depend on market developments. NonGCC countries may suffer problems due to continuing political uncertainty, social unrest and economic difficulties.

Capital levels are not generally a constraint, and Fitch believes that in most cases, additional capital would be available from shareholders. In recent years, most governments in the GCC have provided support to their banking systems through additional liquidity, and in a few cases, capital injections. Fitch expects such support to continue, as capital and liquidity could come under pressure if there is significant loan growth.

Fitch’s view of sovereign creditworthiness in the region has generally remained unchanged despite regional unrest, and the outlook on almost all sovereign ratings is stable. GCC sovereigns are helping to stimulate their economies through government-sponsored infrastructure projects, taking advantage of their significant oil and gas revenues. Oil production is expected to be lower in 2013, but will nevertheless generate strong revenues for oil exporters.

Any change in the majority of outlooks would result from changes in the sovereign ratings in the region or a change in Fitch’s opinion of the sovereigns’ propensity to provide support. As there is a very strong culture and track record of sovereign support for banks, and many banks have significant government stakes, it is unlikely that Fitch’s opinion on sovereign support will change in the foreseeable future.

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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 Enterprise Credit, please SMS ECREDIT to 2626 or visit www.adcb.com Terms and Conditions apply. Credit at sole discretion of the Bank.

FINANCE FOCUS

SHARIA-COMPLIANT FINANCING FOR SMEs

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HUAA Capital has announced that its wholly-owned SMEfocused subsidiary, Gulf Finance Corporation, has engaged with the UAE Central Bank for a licence to establish an Islamic window for some of its financing activities. Gulf Finance plans to submit the necessary applications in the first quarter of 2013 with a view to being market-ready in the spring of 2013, subject to regulatory approvals.

The programme, proposed by Gulf Finance to offer Islamic financial services, supports the vision announced last week

by His Highness Sheikh Mohammed bin Rashid al Maktoum, Prime Minister of the UAE and Ruler of Dubai, to establish a platform of Islamic economic products and services aimed at growing the Islamic economy as part of the overall Dubai economy, while maintaining the UAE’s role as a regional financial centre.

“We expect SMEs, the backbone of the UAE economy, to benefit from this important initiative. As SMEs represent over 50% of the country’s GDP, 80% of employment, and account for over 90% of non-oil exports, but only receive around four per cent of bank lending, it will be important to their growth to facilitate access to more Shariacompliant financing,” said His Highness Sheikh Maktoum Hasher Al Maktoum, Executive Chairman of SHUAA Capital and Chairman of Gulf Finance. “While large corporates and banks as well as the

government sector have good access to Sharia-compliant financing, and the retail market is served by several Islamic banks, there is a major gap of Islamic finance available to SMEs at present.”

Dubai has a proven track record in pioneering Islamic finance with the launch of the first Islamic bank as well as the first Islamic financial market. Demand for Shariah-compliant asset finance and investment product has been growing at double-digit rates in recent years. The Ruler’s initiative to set up a comprehensive platform of Islamic products and services is expected to nurture additional employment and population growth due to enhanced access to Islamic financing

and investment opportunities. It is expected that Islamic finance overall will benefit from further institutionalising the regulatory environment, according to Sheikh Maktoum.

“SHUAA has traditionally been an integral part of Dubai’s non-bank financial infrastructure and with this announcement we pledge our support and commitment to His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision of fostering a vibrant Islamic economy,” said Sheikh Maktoum. “We are well poised to benefit from a growing Islamic finance industry and plan to be a leader in this field.”

“We are confident that His Highness’s vision will foster further advancement of the wider economy by promoting Dubai as a destination for capital and supporting the development of the local SME sector, in particular. GFC is one of the largest assetbased lenders to SMEs in the UAE and we look forward to contributing to the future development of this crucial initiative,” he added.

Steve Williams, Group Chief Executive Officer, Gulf Finance said: “In response to customer demand, we are developing an asset-based Islamic structure. The UAE has already established itself successfully as an entrypoint for goods and capital, and we believe that it is well-placed to become the Islamic finance hub for the Middle East, Asia and Africa as well. Our business will be here to support the growing Islamic economy.”

Demand for mobile banking rises

Misys, a provider of financial services software solutions, has launched mobile versions of its trade finance and cash management products to help its regional banking

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customers in the Middle East meet the growing demand from corporate clients for such services.

In a recent Misys survey looking at global transaction banking trends, almost half of all responding bank representatives stated that mobile channel development for their corporate customers was a priority for the next 12 months, and nearly twothirds had it as a priority on which to focus in the next three years.

“The majority of consumers make payments, transfers and view statements online and increasingly via mobile devices,” said Tim Tyler, Global Product Manager at Misys. “With this being

the norm for consumers, corporate treasurers and transaction banking professionals now expect all their services from banks to be available to them via the same channels as their personal banking services. Misys Mobile for Transaction Banking will allow banks to enhance their service offering to their customers through this additional channel, providing another way in which users can view and manage transactions whenever they require and irrespective of their location.”

The first solution available for licence in the product portfolio is Misys Mobile for Trade Services. This will enable local banks to improve the

service they provide their corporate customers, giving them better access and visibility via mobile devices to all their trade finance transactions.

Trade finance professionals will be able to manage their trade obligations far more effectively than before and review and approve trade transactions. They will also have better visibility and control of invoices payable, issued Letters of Credit and other trade instruments.

The solution from Misys is available via any SmartPhone or tablet including BlackBerry, iPhone and Android. Banks offering their customers this service will maintain their competitive edge at a time when customer service is critical.

FINANCE FOCUS

A BOOST FOR QATARI SMEs

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nterprise Qatar (EQ), the State’s entrepreneurial support body, recently unveiled the first Government Procurement and Contracting Programme (GPCP), a groundbreaking initiative that will aim to transform the fortunes of Qatari SMEs by drastically improving their ability to win business through tenders.

The GPCP has been designed specifically to fit the needs of Qatari SMEs and entrepreneurial ecosystem, making use of findings from EQ’s SME Think Tank Seminar, which was held for the first time on 17th May, 2012.

At the seminar, EQ invited clients and partners to discuss the challenges facing SMEs in Qatar when accessing government tenders, and identified potential solutions that can be delivered

by EQ in cooperation with its strategic partners. EQ has categorised the challenges into three main groups: technological, financial and technical.

Noora Al-Mannai, CEO of Enterprise Qatar, spoke about the difficulties in competing in the tendering process, as well as other major challenges facing SMEs in Qatar today.

“Having surveyed the needs and challenges of over 200 SMEs in Qatar, we can say with great certainty that competing for tenders represents one of the biggest barriers to growth,” she said.

“At EQ , our mission is to support entrepreneurs and SMEs, turn their ambitions into reality, by optimising their performance and minimising the risks where possible. We have designed the Government Procurement and

Contracting Programme meticulously to ensure that SMEs come away with a firm understanding of best practice in the area of procurement, enhanced knowledge of the requirements of major buyers in the market and develop new contacts with buyers. Armed with these contacts and knowledge, we expect SMEs to win more business and be more competitive,” she added.

Government Procurement and Contracting Programme (GPCP) was developed following a number of meetings with governmental and semi-governmental entities and large private sector corporations, including Qatar Petroleum, RasGas, Msheirib, Qatar Foundation for Education, Science and Community Development and Shell Qatar, among others.

The GPCP is comprised of 11 projects that are classified into four main areas, which include SME business environment, business linkage facilitation, business development services and access to finance.

Deloitte to offer services to SME 100 companies Dubai SME, the agency of the Department of Economic Development (DED) mandated to develop the small and medium enterprise (SME) sector, and Deloitte, a global provider of audit, tax, consulting and financial advisory services, have signed a memorandum of understanding (MoU) to offer a financial diagnostic assessment to all members of the Dubai SME100.

Dubai SME 100, launched by Dubai SME under the patronage of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, is an innovative ranking of the topperforming SMEs in Dubai aimed to groom them into bigger, better and sustainable enterprises, eventually graduating them to large globallyoriented companies.

The complimentary financial diagnostic will enable Dubai SME 100 companies to implement an appropriate financial reporting process that will support their growth. The service will also help them realise the their full potential,

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SME ADVISOR Middle East

by helping them look at existing operations and make informed decisions about future strategies.

“Dubai SME is delighted to partner with Deloitte to offer addedvalue services to our current batch of SME 100 companies in the area of financial management. This is a strategic area for SMEs seeking to improve capabilities in budgeting, financial analysis and diagnostics that will aid better decision making.

We believe that the SME 100 companies will find the knowledge and skills imparted by Deloitte extremely useful as they strive to move to the next level of growth and development,” commented Abdul Baset Al Janahi, CEO of Dubai SME. Humphry Hatton, Chief Executive Officer of Deloitte Corporate Finance Limited, added: “SMEs are the bedrock of Middle East business and hugely important to the economic prospects of the region. To achieve sustainable growth, SMEs need to ensure they have the right information and resources to guide their decisionmaking. The financial diagnostic is designed to help SMEs identify the

Dubai SME and Deloitte executives at the MoU signing.

information needed to drive value from their businesses and to ensure it is prepared on a consistent, high-quality and timely basis.”

The offered service will include a half-day workshop, jointly organised by Deloitte and Dubai SME. Following the workshop, interested SMEs can sign up for a one-on-one diagnostic advisory by experts from Deloitte. The

financial information and reporting processes of the SME will be examined to identify any potential areas for improvement and to assess overall alignment with the value drivers of the business. Key areas of review include financial information management, planning and budgeting, performance improvement and capital structure optimisation.

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SME About Town

Women in the workforce

Over 170 delegates from the UAE and MENA region attended the event, which consisted of three different panels focusing on challenges, success stories and policies in relation to women in business.

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ith a staggering one billion women expected to enter the global economy in the coming decade, the conference entitled Women Entrepreneurs in MENA: Successes, Challenges and Policies, aimed to provide insights into this group’s potential and challenges in the region.

The Chicago Booth UAE Alumni Club hosted the conference in conjunction with Booz & Company’s Ideation Center on 16th January, 2013 in Dubai.

The event was attended by 170 delegates coming from the UAE and neighbouring MENA countries.

Three different panel discussions

were organised to capture the different aspects of women entrepreneurship in the MENA region (challenges, success stories and policies). Delegates received valuable inputs from prominent experts on entrepreneurship in the MENA region, like Dr. Nasser Saidi, Former Chief Economist of DIFCA and Executive Director of Hawkamah Institute, Dr. Leila Hoteit, Principal at Booz & Company and Nadereh Chamlou, Senior Advisor MENA at the World Bank. They also exchanged ideas and comments through very active questions & answer sessions.

Dr. Nasser Saidi highlighted the significant demographic

shifts research has shown. He spoke to the fact that:“The per capita talent pool of university graduates coming from developing countries now far exceeds that of developed nations and the responsibility for societies to fully leverage these critical assets.”

Dr. Leila Hoteit, Principal at Booz & Company, detailed the Third Billion concept established

by The Ideation Center and the myths about women entrepreneurs.

According to Dr. Hoteit, “Women entrepreneurs no longer fit the models society has assumed for them, but are forging their own paths and creating new standards of excellence.”

Indeed, today, according to the Ideation Center’s landmark publication The Third Billion, women are among the fastestgrowing groups of entrepreneurs in a number of countries.

However, despite enormous economic contributions and real success stories, female entrepreneurship remains under-explored and inadequately covered in the MENA region due to cultural norms, barriers of doing business and relatively low participation of women in

entrepreneurial activity. Thus, MENA economies need to understand the challenges specific to women’s entrepreneurship, provide a more enabling business environment and promote entrepreneurship with a particular focus on eliminating genderspecific barriers through policy instruments that are effective in raising entrepreneurship rates among women.

The conference is one of several initiatives organised each year by the Chicago Booth UAE Alumni Club advocating the interests of its members and the university, providing continuing educational opportunities, promoting the exchange of ideas between club members and the community and encouraging the development of a strong and diverse association of MENAarea alumni. According to Mark Corusy, President of the Chicago Booth UAE Alumni Club: “We are most grateful for the support of the Ideation Center as well as all the other conference sponsors to enhance awareness of this critical topic and guide the club’s longer term mission and social responsibility efforts focused on entrepreneurship and education.”

Innovator shares leadership lessons The Entrepreneur’s Organization (EO) UAE Chapter, comprising of business owners from across the UAE, recently organised a members event in Dubai presenting an interactive session with Web visionary and innovator Don Strickland.

During the event, Don made a presentation covering characteristics of the Five Star Entrepreneur: inspiring action (more effective than micromanaging), business model innovation (see the world differently), managing by leading indicators (a promise without a plan will get you fired), transparency in decision making (why is more important than what) and managing risk (avoiding management by wishful thinking).

He also showcased business models and entrepreneurial initiatives to reinvent businesses and grow stakeholder value. Don, an earlier pioneer of a disruptive business model called ³Web 2.0², was also associated as a seniorexecutive at Apple, CEO of PictureWorks and CEO of IPIX.

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SME ADVISOR Middle East

Hassan Al-Hazeem, UAE Chapter President, Entrepreneurs Organisation; and Don Strickland, President & CEO, Strickland Associates.

Don, who is currently the President and CEO of Strickland & Associates and Adjunct Professor of Innovation and Entrepreneurship at the Imperial College London, has successfully built businesses internationally for both large public companies and private startups.

Commenting on the engaging session with Don, Hassan Al-Hazeem, President of the

EO UAE Chapter, said: “The Entrepreneur’s Organization enables UAE entrepreneurs to learn and grow from each other, leading to greater business success and enriched personal lives. We are extremely privileged to have a distinguished visionary of the likes of Don Strickland at our special WOW Learning Event. Through this interaction, we have gained an unmatched learning experience which will inspire us to facilitate a more cohesive entrepreneurial environment in the UAE.” The Entrepreneurs’ Organization (EO is a dynamic, global network of more than 8,500 business owners in 40 countries. Founded in 1987 by a group of young entrepreneurs, EO is a catalyst that enables entrepreneurs to learn and grow from each other, leading to greater business success and an enriched personal life. EO has over 120 members worldwide. For more information, please visit our website: www.eonetwork.org

Abdul Baset Al Janahi, CEO, Dubai SME, speaks during the Hatta Entrepreneur Forum.

Dubai SME hosts forum in Hatta

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ubai SME, the agency of the Department of Economic Development (DED), mandated to develop the small and medium enterprise (SME) sector, recently hosted the Hatta Entrepreneur Forum at the Hatta Fort Hotel, as part of highlighting its strategic role and enabling people across Dubai to benefit from its services.

Senior officials led by Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, attended the forum, which was held separately for men and women.

The women’s forum was held under the auspices of the Dubai Women’s Association.

The core objective of the forum was to connect with people in and around Hatta, actively promote entrepreneurial talent, and spread awareness among them on the varied services available in Dubai to

translate their business ideas into initiatives that eventually add value to the economy in the UAE. Participants in the forum were briefed on the comprehensive services and support provided by Dubai SME in business startup, incubation, funding, consultancy, capability building and business development, with a view to encourage entrepreneurship and enhance competitiveness in the business sector in Dubai.

“Dubai SME is keen to spread awareness on our mandate and services as they are critical to achieving the Dubai Strategic Plan and enabling our young nationals to become future leaders. We believe there is vast entrepreneurship talent and potential in Hatta, like anywhere else in the Emirate of Dubai,” remarked Al Janahi.

He added that Dubai SME is working progressively towards providing as many people as possible with a strong platform to

Engaging Emirati youth The integration of Emiratis into the private sector is an experience that must be explored by young Emirati graduates searching for a different perspective and mindset.

This is according to experts at this year’s Emirati Youth Forum, which was held on 28th January in Abu Dhabi. Emiratis currently occupy only 43,000 of the 2.2 million jobs in the private sector, while the public sector employs 495,000 Emiratis. Aligned with Emiratisation, the government aims to spread the workforce more evenly across all sectors, instead of an over-filled public sector.

During the forum, Mawya Al Qaissieh, a corporate communications manager at Reem Investments, shared her story of why she left the public sector to pursue a job in the private sector.

“My advice to the Emirati youth is to identify their career goals before they decide to join the public sector, or the private sector. Their decisions should not be based on stereotypes,” she said.

Emirati students from across the UAE engaged in debates and discussions with top private and public companies at the forum.

The forum was designed to give employers access to engage in

make use of their knowledge and creativity in diverse entrepreneurial initiatives and growing them into globally competitive enterprises.

“We are encouraged by the response from people in Hatta to this forum, especially their keenness to learn about our Intelaq programme for home-based businesses, and we thank community organisations that supported us in making this initiative successful,” Al Janahi said.

Farid Karmostaji, Director of Entrepreneurship Development Division at Dubai SME, added: “Dubai SME has a rich training and education portfolio aimed to support SME capacity-building, over and above the financial, advisory and business development services, as well as discounts and incentive we provide to startup businesses and entrepreneurs.”

Zahra Al Ansari, Senior Executive, Entrepreneur Support Services stated that various convenient options are available for entrepreneurs in Dubai to step into the world of business. “The Intelaq licences are issued to UAE nationals interested in setting up and operating their own businesses singlehandedly from home. Businesses which will not cause any pollution, traffic jams, or harm to neighbours are only permitted under this licence category.”

Currently, only UAE nationals residing in the Emirate of Dubai at the time of application can only apply for Intelaq. They must also refrain from any activity outside the scope of the licence. The activity can be undertaken for three years from the date of issuing the licence, which must be renewed annually. The Intelaq licence will be converted to a business license after three years.

dialogue with Emirati students, hearing their aspirations and expectations of the workplace, while quelling any fears or doubts they may have about working for the private sector.

“For years we diligently worked on partnering with schools and universities to bring business skills training to youth in the Emirates to prepare them for the job market and enhance their work-readiness skills at a young age. Learning skills and job requirements, as a student, helps them think about other opportunities out there, and hopefully, make better career choices,” said Sulaf Saleh Al-Zu’bi CEO of Injaz UAE, the forum’s Community Partner and Chair at this year’s Emirati Youth Forum.

“The forum reverses the conversation and offers the private sector a unique chance to hear from youth instead. It presents employers with an opportunity to listen to the students’ future career outlooks, perceptions of the real world and aspirations,” she continued.

The Forum, took place on the sidelines of the 2nd Emiratisation Summit and welcomed Emirati students from across the UAE, representing top universities and academies. There were also inspirational keynotes from role models dispensing advice and sharing stories, as well as interactive and informal networking settings to facilitate dialogue between the Emirati students and their future employers.

SME ADVISOR Middle East

February 2013

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SME About Town

Lessons from a serial entrepreneur

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irtuzone’s Connect Breakfast event proved to be insightful for the 60 women entrepreneurs and SME owners who attended the event.

Throughout the event, the mood was upbeat as the audience gained practical advice and market insights, as well as the opportunity to network.

“We are committed to accelerating the advancement of women and the growth of their businesses by fostering an upbeat entrepreneurship environment and promoting a network where women could share their knowledge, solve problems, make new contacts and forge alliances,” said Neil Petch, Chairman, Virtugroup.

“Globally, the number of women entrepreneurs is growing, and women are seen as a force for stabilising employment and supporting continued economic growth. We believe there is great potential for the UAE community

Mona Ataya, Founder and CEO of Mumzworld.com speaks about her entrepreneurial journey during the Virtuzone Connect Breakfast seminar.

of female entrepreneurs to mirror this trend, but there is still much that can be done to help them reach their full potential,” added Neil.

Mona Ataya, the event’s guest speaker was uniquely positioned to give advice to budding women entrepreneurs. She comes with 20 years of experience in high leadership positions at the helm of some of the most dynamic companies in the region such

as Mumzworld.com, a successful e-Commerce platform she founded in 2011. The website offers mothers the widest choice of children’s products and the ability to search, compare and buy from a vast selection, easily and conveniently.

The Connect Breakfast event was launched by Virtuzone in 2012 and designed as a series of business networking events that provide its customers with a regular platform for interaction and sharing, with a focus on the critical challenges and issues of small businesses.

“When we started these gatherings we were pleasantly surprised by the turn-out and the level of entrepreneurial activity happening in the UAE. We thought that a dedicated platform aimed at bringing women entrepreneurs together on a regular basis to share best practices,” explained Neil.

“This women-only Connect Breakfast came about because we

believe in the power of women.

We know that when women set their minds on to something, they will move mountains to make it happen. This just so happens to be our story here at Virtuzone, too, an organisation where women are the majority of the work force,” noted Jessica Brett, Group Sales Director, Virtuzone.

“We also wanted to break away from the traditional networking events. We wanted to provide an intimate and worthwhile experience for all women attending, because we want to equally empower and inspire the newly setup companies by stay-athome moms, who just gathered the courage to set-up their own business; but also the high-growth startups of more experienced business women. To us, there is no such thing as a small business.

Without these small businesses and their stories, our community simply would not exist,” added Jessica.

Revitalising Sharjah’s SME segment

The event aimed to introduce Shrajah SMEs and entrepreneurs to the highest industry standards

The Getting Down To Business Conference, recently organised by Sharjah Tatweer Forum, has been hailed as an overwhelming success after two days of networking to usher in future investments for Sharjah. It was held under the patronage of His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah. The major talking points revolved around

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SME ADVISOR Middle East

ways of improving the SME sector, since it contributes the majority of national economic growth. The conference aimed to promote the highest international standards of entrepreneurship to make Sharjah’s SMEs globally competitive.

In his speech, His Excellency Sheikh Nahyan bin Mubarak, Minister of Higher Education, explained that there is a direct correlation between the quality of the education system

and the quality of the nation’s entrepreneurs. He added that to boost economic prosperity, there should be a circle of cooperation involving the private and public sector through various ministries. His Excellency also asserted the need for a central resource of information to guide both investors and entrepreneurs. This would serve as a roadmap directing young citizens towards success.

In a pre-recorded speech prior to his travels to Davos, HE Sultan Bin Saeed Al Mansouri, Minister of the Economy, revealed that the ministry is opening new investment channels that will serve as tributaries of the national economy. He added that the government has made the country’s legal environment more supportive for SMEs and more attractive for investors, as this sector played a crucial role in helping the UAE to overcome the global financial crisis.

For his part, HE Mohamed Al Shehhi, Undersecretary of

the Ministry of Economy, added that the government is drafting new legislation to incentivise young citizens to enter the SME sector and become leaders in the regional economy.

US Consul General, Rob Waller expressed his admiration for the UAE’s efforts in promoting entrepreneurship, pointing out that this is a vital area for cooperation between the two countries. He emphasised that entrepreneurship in the Middle East is one of the major pillars of President Barack Obama’s foreign policy, hence the Getting Down To Business will open new communication channels and promote a trade of ideas between the two countries.

Attendees included prominent business executives, high-ranking government officials, investors and young Emiratis aspiring to start SMEs. The audience was inspired by success stories and testimonials from top businesspeople.

Dubai Chamber hosts global conference

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E Eng. Mohammed Ahmed bin Abdul Aziz Al Shehhi, Undersecretary, UAE Ministry of Economy, affirmed that there are no short cuts to creating a worldclass economy and the UAE is fortunate to have many of the key ingredients necessary to achieve this, like visionary leadership, stable government and a thriving, diverse private sector.

HE Al Shehhi’s comments came during the International Conference, recently hosted by Dubai Chamber. “Achieving excellence is at the heart of this ideal, and it is this concept that is guiding the UAE as it moves forward in its journey of growth and development. Still, the key to our future lies in developing and incorporating the world’s best business practices in line with local expertise,” he said.

The conference saw the launch of the 7th cycle of the Mohammed Bin Rashid Al Maktoum Business Award 2013.

Al Shehhi further stressed that excellence was at the heart of the UAE’s economic strategy and it is the main reason for the country’s swift rebound.

“For us, leadership, strategic planning, workforce and customer focus constitute the concept of business excellence. Similarly, the UAE’s sharp policies, diversification and openness to business helped it prosper in the wake of opportunities arising out of the global financial crisis, the Undersecretary of the UAE Ministry of Economy said.

Al Shehhi congratulated Dubai Chamber for organising the International Conference Mohammed Bin Rashid Al Maktoum Business Award, focusing on the concept of business excellence. He said that the award participants are helping embed excellence in the UAE’s private sector every day.

He further stressed that the UAE’s efforts to steer the country towards economic growth and entrepreneurship along a new path, are beginning to bear fruit.

HE Eng. Mohammed Ahmed bin Abdul Aziz Al Shehhi, Undersecretary, UAE Ministry of Economy, gives the welcome speech during the Dubai Chamber conference.

“Economic diversification, industrialisation and the promotion of entrepreneurship will continue to be our focus throughout 2013, in line with the UAE Vision 2021,” said Al Shehhi.

“The growth of SMEs, which constitute 94% of all operating companies in the country, is important to us and we are focused on encouraging and investing in the next generation of Emirati entrepreneurs, especially in the SME sector. We also feel that increasing private sector participation of Emiratis is vital to ensuring a sustainable and profitable future for our country,” he added.

Highlighting the impact of excellence on a company’s efficiency, productivity and profits, Al Shehhi stated that it is vital that all businesses today strive to employ better business practices in terms of their responsibility, accountability and transparency.

The eyes of the world are watching Dubai’s progress closely and this is a real chance for us to prove that we are as forward thinking and pioneering as the best, he said.

HE Hamad Buamim, Director General, Dubai Chamber, informed that the Mohammed Bin Rashid Al Maktoum Business Award, now in its 7th cycle, has incorporated the concept of continuous

improvements for organisational transformation within its core and will encourage more businesses from different economic sectors, size and type to become examples of best practice in their respective fields.

He added that the award has helped countless businesses become more effective, more productive and more profitable organisations, thus helping enhance quality, accountability, and sustainability across Dubai’s private sector by setting a standard and rewarding high achieving businesses.

Buamim noted that to date, 93 organisations have won the award as its previous cycle attracted a diverse range of companies, from 17 different economic sectors, ranging in size and type. 76% were first time applicants, 22% were previous award winners and 24% were returning applicants, he said.

“Behind the award are the Mohammed Bin Rashid Al Maktoum Business Performance Programme, the Business Model and the Business Club, which have been developed to help transform an organisation’s culture that values quality, professionalism, integrity, and responsibility,” said Buamim.

He stated that the award’s criteria have been designed in accordance with international best practices for business excellence. Consisting

of nine categories, the Business Performance Model framework, which is based on a self-assessment model is a comprehensive guide to streamlining an organisation and ensuring that all its facets are aligned to the greater concept of excellence, he said.

Buamim accredited the success of the award to its global partners in the US and Singapore, stating that though the Chamber is in the process of developing and enhancing the award today, it has ensured that the award is based on latest and best global models.

The second half of the conference hosted an interactive forum with two panel discussions chaired by Dr. Belaid Rettab, Senior Director, Economic Research and Sustainable Business Development Sector, Dubai Chamber. A token of appreciation was presented to the speakers at the conclusion of the conference.

Main speakers included: Ryuichiro Yamazaki, Secretary General, Asian Productivity Organisation (APO), Mohammed A.R. Al Fahim, CEO, Paris Gallery, UAE, Sumair Sayani, Managing Director, AC Nielsen AMER Limited, UAE, Ken Liew, General Manager, Wing Tai Retail Pte Ltd, (2012 Singapore Quality Award Winner), Marcus Bailey, Regional Head of Corporate Affairs MENAP, Standard Chartered Bank, Dr. Roy Bauer, President and COO of Pemstar, USA, and Jagadish CV, Chief Executive Officer, Systems on Silicon Manufacturing Company Pte Ltd, (2005 Singapore Quality Award Winner).

The Award, which is organised annually under the patronage of HH Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, provides an excellent opportunity for participating organisations to gain experience through self-analysis and benefit from other participants’ experiences in institutional performance.

SME ADVISOR Middle East

February 2013

21

Trade

The art of

pricing

Dr. Ashraf Mahate of Dubai Exports explains why accurate international pricing is of paramount importance when it comes to exporting.

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SME ADVISOR Middle East

M Dr. Ashraf Mahate Dubai Exports

any first-time or infrequent exporters do not consider the various non-domestic costs that can contribute to the per unit price. In today’s globalised business climate, pricing a product is the most important factor affecting financial projections in the international business plan. Among the special elements to consider when exporting are: the percentage markup, sales commissions, freight forwarder processing and documentation fees, financing costs, export packing charges, labelling and marking, inland freight charges, unloading at the terminal, insurance, payment schedules and currencies, and so on. Each of these costs should be taken into account in the financial projections and budget.

A common mistake that exporters tend to make is that they convert their domestic price into the foreign currency.

It is important to remember that foreign products compete with domestically produced goods, and therefore, price is an important consideration. This is more so the case where consumers are price sensitive. Even though consumers may be willing to pay a premium for quality products, it may not be as large as the home country. Therefore, the importance

“

The importance of accurate export pricing cannot be over-emphasised, as any error in this area can lead to either losing foreign orders or, the possibility of making losses. In addition, export pricing can be an important tool for promoting sales and competing in the international arena.

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of accurate export pricing cannot be over-emphasised, as any error in this area can lead to either losing foreign orders or the possibility of making losses. In addition, export pricing can be an important tool for promoting sales and competing in the international arena.

Naming the right price

Key factors that determine the foreign price of a good or service are cost, demand and competition. In the case of cost, one needs to ensure that all costs including those incurred in the foreign country are incorporated in the final price. At the same time, the exporter needs to be aware that his product or service is competing with other products and services from all over the world. The price has to be realistic, while ensuring that the exporter receives an adequate return for conducting business in a foreign location. There is no fixed simple formula for successful export pricing. It differs from exporter to exporter, depending upon the good or service in question and the level of customer loyalty that it can attract.

Some of the factors that increase customer loyalty, and hence allow the exporter to charge a higher price, include: the range of products offered, prompt deliveries and continuity in supplies, after-sales service, product differentiation, frequency of purchases, presumed relationships between quality and price, intangible value of the product such as brand image and credit offered, among other factors.

Factors that contribute to the increase of export pricing on products are: special packing, marking and labelling, additional supervision and effort for export product, export

transportation cost, cost of export procedures, marketing and insurance costs, along with many others. On the other end, export or government assistant, refund or exemption from excise duty, cash or advance payments, benefits from economies of scale, as well as effective logistics and operation management are considered to be the important factors that reduce the price of export products.

Methods of pricing

There are several methods that SME exporters can implement to improve their pricing strategies. Under the cost plus approach, the exporter calculates the total cost of producing a good or service including transport, insurance, custom duties and so on. If required under the contract, the exporter then adds a percentage as the profit on the sale.

The additional component, such as the profit, depends on the particular market and product. In most cases, a new exporter can use the general profit rates of competitors as a starting point. The problem with this method is that it can lead to an uncompetitive market price especially in a highly congested sector.

When using marginal or differential pricing, the exporter is only concerned with the additional cost of producing the good or service. This method of pricing arrives at the direct cost of producing the good or service and the fixed costs are apportioned to the total volume of output. The key advantage of this method of pricing is that it leads to a more competitive export price especially for new entrants.

Predatory pricing is where the exporter sells the product or service at such a low price with a view to drive out competitors or create barriers of entry so that new entrants cannot come into the market without making a loss. This is not to be confused with competition based pricing, in which the new entrant uses the price charged by competitors to base its own price. The method assumes that there is little if any difference between the exporter products and those of its competitors. A variant of predatory pricing, penetrating pricing sets a low level in order to obtain a foothold in the foreign market. Unlike the predatory pricing method this technique does not seek to eliminate competitors but simply penetrate the foreign market.

The psychological pricing method seeks to exploit the positive aspects of human nature in order to set a price.

For example, a price of USD 0.99 is psychologically better than USD 1.00 because the consumer perceives it in a more positive manner than the latter one. Similarly, a higher price may in some markets imply that the product is of a better quality. Other methods include dynamic pricing, which is largely employed in Internet-based markets, and price discrimination, which separates the market into a number of smaller segments where each one is charged a different price based on their willingness to pay.

Impacting buying behaviour

Price is a critical factor, but does not by itself tilt the buying decision. Some buyers may make a trade-off between quality and price. Pricing strategy should also take into account the specific market segment. Once the product and price are right, the buyer looks at the exporter’s ability to perform well. Realistic delivery schedules and having confidence in meeting them will go a long way in securing export orders. The guaranteed quality of a product, its conformity with specific international standards, and

SME ADVISOR Middle East

February 2013

23

Trade About Dr. Ashraf Mahate is the Head of Expor t 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.

“

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

Pricing strategy should also take into account the specific market segment. Once the product and price are right, the buyer looks at the exporter’s ability to perform well. Realistic delivery schedules and having confidence in meeting them will go a long way in securing export orders.

“

proper packaging, labelling, and markings, can be a major selling factor. High quality also affects after-sales service.

Normally, customers have in mind a combination. Some of the important aspects that affect buyer behaviour are listed below.

It’s important to note that export pricing is not an easy exercise and all too often exporters fall into the obvious traps. Some of these include not carrying out adequate

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).

research in order to determine the acceptable market price, not taking into account additional cost components such as transport, not fully understanding the trading terminology or, conventions and a lack of awareness of the product standards in the foreign country.

Although, an exporter may be aware of such traps, and include them in the export price where applicable, there are also other aspects that can drive up the cost of the product. Some of the points that an exporter needs to be aware of are: increases in fixed costs, custom delays, export documentation, currency hedging, documentary credit, letters of credit and local terminology.

These are just some of the tips that an SME can use in order to correctly price its products. However, the real takeaway should be the need for SMEs to start exporting in order to really understand how to price. Exporters may make mistakes, but then again it’s these mistakes that provide businesses the experience needed to become wiser.

PRICING AND BUYER BEHAVIOUR

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February 2013

SME ADVISOR Middle East

BANKING FOR BUSINESS

Building that bankability We outline how to increase your appeal to bank financers by tailoring your business presentation and fulfilling some inviolable requirements.

O

Mike Byrne CPI Business

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February 2013

ver the past few years, the Middle East in general, and the UAE in specific, have witnessed tremendous growth in SME activity. With this growth has come more demand for finance options; private equity funds, government intiatives and banks have all re-positioned themselves in order to accomodate with fostering and sustaining this growth.

For any SME the process of looking for money must match the needs of the comapny; where you seek financing must depend on what type of business you are operating and what finance best supports this. There is a substantial difference between a high-growth Internet-related company looking for second round venture funding and a local retail store seeking to finance a branch store.

If the decision is made that choosing an alternative source of funding (through the normal channels of equity financing investors) is not an option, then there are systematic requirements every SME should take into account when approaching a bank.

Banks are in the business of lending, but this is inextricably linked with risk mitigation. Information that is quantifiable, verifiable and sustainable will serve to appease such prerequisites.

Each bank bases its terms subject to individual internal preferences and know-how and operate in target markets of its choice. As such, each SME should not assume one application will suffice for all applications to various banks; paperwork should be tailored according to the specifics needs

SME ADVISOR Middle East

of each institute and before approaching a bank ensure that the following questions can be adequately addressed: • What are the financial, business and structural risks?

• How can these best be mitigated?

• What is the ability to repay and how can this be best demonstrated?

• How can the willingness to repay best be demonstrated (reputation, integrity and so on)?

• Is it profitable for the bank?

• What security or collateral can the bank receive and how enforceable is it?

Typically, banks in the region will want to differentiate between financing for growth and expansion and basic finance to kick-start a business. The latter is not as commonly granted and instead those SMEs with an established presence of three to four years operational history will be preferentially considered; businesses of this nature normally generate enough stability and assets to serve as collateral.

The global turmoil witnessed during the past few years has certainly ensured that banks and lenders in general have reassessed their portfolios and have rationalised their lending to what they deem as risks that can be taken effectively and efficiently.

As with every other activity, SMEs in this region have also had to face a steep learning curve. One of the most obvious

Open operating accounts with at least two banks (that have SME divisions) and build a track record with both. Also be sure to regularly update the bank of material changes to the business.

Appoint an auditing firm (make sure it is bank empanelled) to audit your books from year one.

Invest in a good accountant who will maintain reliable books – or outsource if needs be.

Build a good reputation with your suppliers, employees and clients; banks can sometimes check the market for character references (whether it is for an individual or for a company itself).

And remember; banks talk to each other too, so creating a difficult relationship with one may impede the relations with another.

For those SMEs who have smartly adopted the above measures, there are further steps to increase your appeal to a bank, and which can serve to expedite the application process. Share a clear, concise and detailed utilisation plan of the facilities requested and of your financing needs.

Reviewing financial statements in advance of approaching a lender is also advised as it will give SMEs a chance to take stock of potential collateral for the loan, which may include hard goods, real estate, stocks and bonds, or personal assets and guarantees.

Though you may have an existing business plan, prepare a re-worked version, taking into account any updates that pertain to the application.

Then, merge the business plan with the bank’s credit application. This effectively means that your plan has detailed information on your business model and history, industry specific background, terms of trade, organisation charts and resumés of people and employees, a financial snapshot and audited statements, list of suppliers and clients, and where possible, testimonials from clients.

In order to appear professional and to make the process that bit easier for the bank, prepare a file of your business plan, audited statements, brochures, testimonials, trade licence, Memorandum of Association (MOA), bank statements from the previous six months and accurate cash flow forecasts, as well as any additional documents requested by the bank.

SME LOANS AS PROPORTION OF BANK LENDING Out of 250,000 companies in the UAE, an estimated 230,000 (95%) of them are SMEs. The Average Revenue Opportunity per SME of a banking relationship is estimated to be AED 90,000 per annum.

Number of SMEs (existing and potential): AED 3.6 – AED 6 billion financing opportunity for banks.

Source: Dubai SME, Dun & Bradstreet

Key facts

Source: Dubai SME, Dun & Bradstreet

“

“

issues when it comes to accessing bank financing is producing adequate, appropriate and validated documentation. But this is precisely where many SMEs are found lacking and this causes delays and worse still, rejection from banks.

Add to this the lack of proper feedback and references from the market and the lack of historical performance and data and you can understand why the banking community insists on their requirements being strictly satisfied.

Therefore, the following steps should be adopted and implemented by those SMEs wishing to proceed with an application for finance from the banks:

Each SME should not assume one application will suffice for all applications to various banks; paperwork should be tailored according to the specifics needs of each institute.

What is of particular importance in this region is relationships and building a trust element before conducting substantial business. Approaching a bank is no different; if you are able to arrange an introduction from a friend, colleague or family member, to a banker at your chosen bank, then this is your entry point to building that trust element. Send your file in advance and attend the initial meetings with a copy, ready to make a brief presentation.

For SMEs still unsure about their position and bankability after implementing the various strategies discussed, there is a governmental initiative to help. In 2012, Dubai SME launched the SME Friendlessness Index, which is designed to give constructive feedback from SMEs to banks.

The index analyses various’ banks SME strategies and aims to help them realise the opportunity of providing financing options to the UAE’s SMEs. At the same time, the index provides insights to SMEs on local banking structures and practices.

Dubai SME’s bebankable.ae website was launched in the last quarter of 2012 to provide information about auditing and best practice for corporate governance. Furthermore, the website provides a tool that enables an SME to self-assess their readiness to seek a loan from a bank and the option to submit an application through the website. Qualified auditing companies are very much involved with the website and give pointers on basic auditing practices and how to select the best auditor for the specific type of SME. What is unique about this initiative is that it is designed to not only help SMEs, but to also aid banks in better understanding the needs according to the business size. Bank relationship managers can begin to tailor their products through the data collected in order to best utilise the funds allocated under a bank’s SME division.

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OPPORTUNITIES

Ready for round two In an exclusive interview, Abdul Baset Al Janahi, CEO, Dubai SME, shares his expectations for the second cycle of the Dubai SME 100.

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February 2013

SME ADVISOR Middle East

W

hen the Dubai SME 100 was first launched two years ago, Abdul Baset Al Janahi, CEO, Dubai SME, recalls encountering some scepticism about the value add of the ranking. At the time, SMEs had the option of entering in for awards, or other competitions that could provide them with industry recognition and brand awareness. However, this initiative aimed to go above and beyond such efforts to actually create a benchmark that would analyse and rank SMEs according to their financial performance, sustainability and growth potential.

Pitching such a fresh concept on the SME level was a challenge in the beginning stages. “In the startup phase, it was challenging to get SMEs interested in the initiative, especially when the prevailing perception was that the ranking initiative was just another award, which is not the case. Dubai SME has taken pains to ensure that the ranking is not an award, but a ranking based on growth and performance to identify quality SMEs that can grow bigger and better,” says Abdul Baset.

Joumana Saad CPI Business

“

this year, a bold prediction, considering that a total of 1,092 SMEs registered for the initiative in 2011, of which 196 SMEs applied to move on to stage two of the application and evaluation process. From these 196 serious applicants, the top 100 were selected and ranked based on complete submissions of financial statements, supplemented by either a management interview or site visit to ascertain facts and evaluate the merits of each case. This year, the agency is also expecting more than half of the current SME 100 companies to apply again for the 2013 cycle.

For the next round, there will be a few differences when it comes to the evaluation process, as a bigger focus will be put on innovation and human capital, as well as a continued focus on corporate governance as a differentiating factor. In fact, corporate governance will be added as a category for the evaluation criteria. “The rationale is that to be a quality SME, and a global company in the making, there needs to

In the startup phase, it was challenging to get SMEs interested in the initiative, especially when the prevailing perception was that the ranking initiative was just another award, which is not the case. Dubai SME has taken pains to ensure that the ranking is not an award, but a ranking based on growth and performance to identify quality SMEs that can grow bigger and better.

“

EVALUATION CRITERIA

SME 100 EVALUATION CRITERIA

FINANCIAL PARAMETERS

GROWTH PERFORMANCE

NON- FINANCIAL PARAMETERS

FINANCIAL SOUNDNESS

INNOVATION

HUMAN CAPITAL DEVELOPMENT

INTERNATIONAL ORIENTATION

CORPORATE GOVERNANCE

Garnering interest for the initiative should not be a problem this year, as he revealed that Dubai SME has already been receiving a very healthy number of applications almost immediately after the second cycle was announced. Abdul Baset says he expects close to 3,700 SMEs to be nominated

be some level of corporate governance to grow stably and sustainably,” says Abdul Baset. “In terms of benefits, the focus is on capability development in areas needed for stable and sustained growth. Dubai SME will identify valued partners who can lend their experience and expertise to the SME100 companies in required areas,” he added.

While Dubai SME was not able to disclose the names of the partners that will be coming on board just yet, the agency will aim to build up a group of partners who can add real value to the ranked companies, especially in the areas of knowledge and capability development. “Over the last year, we have enlisted several partners who have committed to develop the SME100 companies by lending expert advisories in finance, investment and corporate governance.

This year, we are focusing on innovation, risk management and insurance, financial management and human capital development,” says Abdul Baset.

A number of financial players were on board for the first round in 2011, and assisted in driving nominations and offering special benefits to the listed companies.

These include designating them as a priority account with a dedicated relationship manager, preferential pricing, priority transaction processing at a preferential schedule of charge, high loan amount limits, low collateral obligations, reduced fees and charges on export transactions, as well as flexible repayment options. Among these previous partners were ADCB, SHUAA Capital, Emirates NBD, Standard Charterd, Mashreq Bank, Commercial Bank of Dubai, HSBC Middle East and Dun & Bradstreet.

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OPPORTUNITIES

After evaluating 1,092 registrations and 196 serious applicants, the top 100 ranked companies of first SME 100 cycle were unveiled in a ceremony in early 2012.

Nilanjan Ray, Senior Vice President and Head of ADCB’s Business Banking Division, tells us that first round initiative was a “highly effective and beneficial process” for the bank’s SME clients. As a partner, ADCB encouraged their clients to nominate themselves for the ranking, and in turn, the applicants were advised by Dubai SME throughout the whole process. “We have seen 17 customers of ADCB being

SME 100 QUICK FACTS

of the ranked SMEs are classified as micro SMEs; 52% as small SMEs; and 33% as medium-sized SMEs

Estimated net turn-over of the top 100 SMEs

1.4 billion

aed

2.3 billion

aed

15%

Value of total assets with a combined profit of AED 220 million

* Refers to the first cycle of SME 100 ranked companies, 2011 - 2012

included in the ranking in 2012. We have ongoing discussions with several other members of the ranking for initiating banking relationships,” says Nilanjan.

Most recently, Dubai SME announced a partnership with Deloitte & Touche, in which the company will offer a financial diagnostic assessment to all current members of the Dubai SME 100. According to Dubai SME, the agreement is aimed to help the companies implement an appropriate financial reporting process that will support their growth.

The financial information and reporting processes of the SME will be examined to identify any potential areas for improvement and to assess overall alignment with the value drivers of the business.

One of the biggest achievements of the first batch of ranked companies was the level of progress on the corporate governance issue. Since last year, 15 of the ranked SMEs joined Dubai SME’s corporate governance

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SME ADVISOR Middle East

track and are now in various stages of implementation as they see the benefits of doing so. “For the firm valuation initiative, more than 15 SMEs have undergone the exercise, and are now able to understand better what drives the equity value of their businesses and the gaps to address, including how to build future value. We believe these are real tangible values of our SME100 initiative and expect more SME100 firms to take concrete actions to develop their growth and development in a sustained manner,” says Abdul Baset.

Micro Automation Industries is one SME 100 company that is planning on applying for the second cycle. Hazim Al Hajjaj, Managing Director, Micro Automation Industries, explained how the ranking has acted as a catalyst in the advancement of the company’s various goals. “We are applying again not only to maintain our position as the number one in the innovation category of SME 100, but also to keep the challenge going for us,” says Hazim. “What will keep us ahead and stand out from other SMEs, is the research and development that we do for all our products and solutions. The recognition that we will receive will help us to promote our products not only in Dubai, but in the region and worldwide as well.”

This year, Micro Automation Industries will introduce a number of new products as it aims to maintain its innovation ranking. After joining the SME 100’s corporate governance track, the company has created a board of advisors, implemented a transparency system for all of its record and documentation and finally made headway in the area of family governance. Hazim recalls the company’s induction as a game changing moment on its journey to success. “Ever since then, we have been doing our best to become the best in our field. Such recognition from the Dubai Government has helped us to manufacture innovative range of cost effective, microprocessor embedded products, power protection and electronic controllers. Receiving this prestigious recognition has also made us more motivated to keep our company ahead in innovation and engineering,” he says.

OPPORTUNITIES

Keeping it

flexible

A new survey report from Regus highlights the opportunities that flexible workspace options can provide SMEs and startups in the UAE looking to extend their reach into new markets.

O Joumana Saad CPI Business

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February 2013

ne business trend that’s gaining some momentum in this part of the world is the use of flexible and shared workspace.

In the Middle East, three out of four companies say paperwork and property costs are their biggest obstacles, according to the survey. Second is speed of setup and operational staff recruitment. Using flexible and shared workspace can help to eliminate such obstacles. From cash flow, to paperwork, to recruitment, to the difficulties of planning ahead, the need for flexible work options is growing among startups and SMEs in the GCC and wider MENA region.

“Companies are less willing than ever to lock themselves into expensive and limiting long-term office leases. There are many elements feeding the appetite for more flexible and shared workplaces, such as, more people working on the move, companies’ desire to reduce property overheads and increase productivity, as well as global economic climate that’s still very uncertain,” says

SME ADVISOR Middle East

Julie Melskens, Regional Marketing Manager (Middle East & Africa), Regus Saint Lazare. “As a result, more and more companies in more and more countries want access to flexible business space, maybe for one person, or, maybe for a whole team.”

Rising demand for flexible options

Regus has catered for this appetite, steadily opening more flexible workspace in the places where businesses need it.

Over the past decade. it has grown its UAE network from one location to 11, covering Dubai, Sharjah and Abu Dhabi. It offers flexible workplaces in ten countries in the Middle East, with 2012 openings including Dubai World Central and its first centre in Jeddah, Saudi Arabia.

Globally, Regus covers 99 countries in total, including businesses of all sizes in various stages of development.

The products on offer are so flexible that businesses don’t even need to use physical workspace at all; they can just use services like telephone answering.

administrative support as required, and provide them with a great business address,” adds Julie. In addition, Regus customers who want to extend their reach and export into foreign markets are able to make use of its various services in all of its 99 locations worldwide.

For Konsilia, a provider of tax and legal counsel in Spain, UK and Qatar, a professional image was a key attraction of using Regus: “We wanted to ensure a good image and service, both with physical premises and on the phone. Regus offered us this guarantee,” says the company’s Founder, Fernando del Canto Gonzalez.

For Mars Venus Coaching, using the Regus Business Package in Jordan helped the company save on staffing and occupancy costs.

Over the past decade, Regus has grown its UAE network from one location to 11, covering Dubai, Sharjah and Abu Dhabi.

“

Companies are less willing than ever to lock themselves into expensive and limiting long-term office leases. There are many elements feeding the appetite for more flexible and shared workplaces, such as more people working on the move, companies’ desire to reduce property overheads and increase productivity, as well as global economic climate that’s still very uncertain.

“

The company is now putting a key focus on the UAE, as it’s fast becoming a regional hub for entrepreneurship and startup activity. In this dynamic marketplace, Regus is now seeing growing interest from startups and SMEs. Driving export growth

Statistical evidence has shown how a firm’s ability to export correlates to its overall performance and risk level. A survey also shows that 50% of exporting firms say they’ve increased profits over the last 12 months, compared with just 38% of companies which only trade domestically. “Our survey really does show the benefit of overseas expansion,” says Osama Eskander, Area Director, Gulf, of Regus. “But it’s clear there are some big challenges facing companies who want to move abroad. Once that initial enthusiasm has worn off, companies find they’re bogged down with paperwork or red tape, or have real difficulty establishing a physical presence in a foreign country. Business centres, such as those run by Regus located in the country, can be an answer as they provide flexible workspace, local business expertise and affordable administrative services, giving companies a local presence without the financial risk that has traditionally been associated with expansion abroad,” he adds.

“The Regus Business Package enables small companies to project an impressive and efficient image, all on a tight budget. Business owners are free to focus on growth and sales, while Regus multilingual staff handle their mail, answer calls in their company name, supply

Scalable services

As companies grow with time, they are in need of services that grow with them. Julie explains how a great deal of their business customers eventually graduate to using physical workspace under Regus. “Taking space at the same centre they used, means they don’t even have to

50%

In the Middle East, more than three-quarters

76%

of companies trading internationally said profits had grown compared with just

of firms say paperwork and property costs are the biggest obstacles to setting up a presence abroad

38%

of firms concentrating domestically

36% Managing local taxation and regulation is also a significant issue for many firms

31%

Risk management – including political risk and the possibilities of natural disaster such as earthquakes, typhoons or flooding – also concerns almost a third of respondents

Source: Global Survey report, Regus

change address. So, this is something to bear in mind when choosing an initial base,” says Julie. At all stages, there is no long-term commitment or binding contract.

Businesses can use just the space that they need at any given time, knowing they’re gaining from flexibility, world-class support, networking opportunities and access to an international network of professional workspace.

The flexibility and backup that Regus business centres offer startups and SMEs is especially important given the common day-to-day challenges small businesseses face.

“As we all begin to implement our plans for 2013, the economic outlook remains as uncertain as it was in 2012,” says Julie. “There’s certainly some good news and scope for optimism around, but there are challenges too. In such a climate, it’s not surprising that flexible workspace is a mega-trend: whatever the stage of your company, it makes business that little bit easier.”

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SUCCESS SERIES

An entrepreneurial exchange Three of our Stars of Business award-winning companies tell their stories of struggle and accomplishment, during a recent Success Series event in Dubai.

T

Joumana Saad CPI Business

PRESENTING PARTNER

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February 2013

he turnout was impressive during the recent Stars of Business Power Lunch event, as SME owners and managers came to gain insights and advice from the guest speakers of the winning companies. The event was organised by CPI and presented by ADCB, with du serving as the Exclusive Telecom Partner. The theme was the celebration of success, while at the same time the event provided the speakers a platform to share their personal stories of hard work, success and lessons learned. The diversity of the panel of speakers also made for interesting discussion, as each of the companies represented were at a different stage of growth. Other winners and finalists, who were

EXCLUSIVE TELECOM PARTNER

SME ADVISOR Middle East

INSURANCE PARTNER

STRATEGIC PARTNERS

also present in the audience, enjoyed the informal and interactive format of the event, with the speakers taking questions and feedback from the audience.

Nilanjan Ray opened the event with a welcome speech outlining the bank’s commitment to serving the SME sector in the UAE and abroad. He explained how “SME business continues to be a priority for the bank” and added that he expects “more opportunities for SMEs in the near future as a result of the continued growth of logistics and trade.” He added: “We are proud to be affiliated with SME Advisor for the fourth year in a row. I would like to welcome and applaud our speakers, who are prime examples of companies excelling in their categories.”

KNOWLEDGE PARTNER

BUSINESS COMMUNITY PARTNER

SUPPORTING MEDIA PARTNERS

PUBLISHER

Winner presentations Winner: People’s choice

The first speaker to take the stage was David Cook, Founder and Managing Director of UAE-compare.com, a provider of fit-out contracting solutions. The company hand picks the most qualified suppliers. It then presents them to its clients, with the intention of eliminating the rogue traders from the market and providing a low-risk solution to the tendering process associated with new office fit-outs. The company won in the People’s Choice category at the SME Advisor Stars of Business Awards 2012.

Through an interactive presentation, David highlighted real issues and obstacles he faced after he came to the UAE with the intention of starting up his own business. His strategy was to find a problem or market demand, create a solution and see whether people would be interested enough to purchase it. After narrowing his focus and building up the business, one of his first challenges was to master the art of maintaining a healthy cash flow. He explained how receiving payments on-time and efficiently is easier said than done, and any delay in delivering services to the customer can cost an SME its reputation.“If the product or service you are offering is reliant on you receiving something first, be sure to screen through suppliers thoroughly and test them on small products,” said David.

During his entrepreneurial journey, David admitted reaching a point where he had run out of money and had to sell his personal items just to keep his dream alive. Among the key lessons he has learned along the way was the value of relationships and partnerships.

After seven months of scouring to find right contactors, David partnered with five companies. “People overpromise and under deliver; to safeguard yourself against losing time or money, include a time penalty into the contract or, simply double the delivery time and plan for the goal,” he said. He added: “It’s important to remember that you are an expert in only one or two fields at most; a strong organisation needs experts in at least five. IT and Web skills are extremely important; you simply can’t do it all yourself.”

“The potential for business was there, but I was not getting enough business to stay in business,” said Robert.

Then came a turning moment when an Emirati friend of his offered some financial support, just when he thought he would have to give up on his dream. After developing and executing a number of successful customer service reports and initiatives, Robert was called to meet with Abu Dhabi government, where one of the highest-ranking executives quickly took notice to the importance of the company’s reports. To this date, Robert estimates that about AED 40 million has been spent by government institutions in the UAE with his company on a number of initiatives and solutions.

“

Being an entrepreneur is fantastic for a number of reasons. I learned more in 2011 and 2012, than any college or university has ever taught me about doing business. I learned about cultures and corporate world, and experienced the real challenges first hand.

“

David Cook Founder and Director UAE-Compare.com

When it comes to defining your business idea and plan, Robert emphasised the importance of creating a service that is scalable and adaptable to new market needs. “We started out with mystery shopping and gradually developed into an institute with a global footprint with partners from all regions. We are in the business of selling solutions and have recently developed eLearning solutions,” says Robert. “When you’re running a business, today is not as important as tomorrow. You need to have a plan a place, and you need to know what your are selling and how valuable it is. I didn’t do this right for the first 18 months.”

Robert also spoke about the company’s core value of investing in its human capital. “My advice to you would be to always look after your greatest asset, which is your staff. Reward and recognise continuously; be creative in engaging the team and get them to think as a team.” He added that in a unique place like the UAE, where professionals are away from their home countries and families, an employer has the opportunity to form a real bond with it employees, and in return, gain their loyalty.

Robert Keay Founder and Managing Director Ethos Consultancy

Abdullatif Alsayegh Owner and CEO Alsayegh Media

Winner: Consultants

Winner: Media, marketing and events Emirati entrepreneur of the year

During the second presentation, Robert Keay, Founder and Managing Director of Ethos Consultancy, began by being completely honest about the difficulties he faced in getting his business to take off in the UAE. The first mistake, he says, was assuming the business environment in the UAE would be similar to his home country.

The final speaker of the day was Abdullatif Alsayegh, an Emirati entrepreneur and pioneer in the UAE media industry. After spending time in the US studying mass communications, Abdullatif returned to the UAE ten years ago to find himself in an environment with a media scene not well

SME ADVISOR Middle East

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SUCCESS SERIES prepared to accommodate his goals. He explained how he came close to choosing another career until he received a phone call that changed everything for him.

A company from London contacted him, as they had plans to launch a new radio station in Dubai and wanted him onboard.

Abdullatif was at the forefront of launching Al Arabiya, the first Arabic radio station in Dubai. “I had no title at first, and within three months, I had four titles all while I was still very young. Al Arabiya turned into a success, so I thought about another station.

In less than two years, I built eight stations covering Hindi and other languages. We built teams and brought them to Dubai,” said Abdullatif He later ventured into newspapers and launched a number of Arabic language titles, and eventually launched Dubai Eye, after convincing the board that talk radio could work in a place like Dubai. Throughout his time working in the media industry, Abdullatif says it was his determination to succeed that kept him focused on reaching his goals. “I learned through my journey that possibilities are always there; it’s up to us as to what we can make possible. It’s crucial to bring on the right people who can hit the ground running like soldiers,” he said.

has its eyes set on a regional expansion with a near-term launch in Saudi Arabia. “With 25 different nationalities on board, recruiting is part of our long-term strategy, as we are looking for people who can help us get into foreign markets,” he added.

Other winners of the 2012 SME Advisor Stars of Business Awards attended the half-day event including Kris Barber, CEO and Founder, Dgrade, which was named Green Business of the Year.

Questions from the audience touched on a number of topics including, market research, sales strategies, risk and reputation and human capital. When asked if they would have done anything differently, David was of the opinion that he would have made the same decisions and mistakes, as he has learned so many valuable lessons along

After stepping down as CEO of Arab Media Group, Abdullatif decided the time was right to start something up on his own. Alsayegh Media was formed in 2010 with a vision of becoming the go-to local advertising and marketing agency.

“My mission statement was enough to get us noticed in the market. We did not go after government at first; we went after international names. Because we had a local expertise, and then began to received outsourced work from larger agencies based here,” he said.

Abdullatif had big expectations for the brand even during its very small beginnings. “We had no office when we started, I went to a client and I sold something before we formed the company.

So, the drive was there from the very beginning.”

He also explained how he spent a lot of time and effort in putting the right team together for his new company. Today, the company has 62 employees and plans to open an office in Abu Dhabi. It also

PRESENTING PARTNER

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February 2013

EXCLUSIVE TELECOM PARTNER

SME ADVISOR Middle East

INSURANCE PARTNER

STRATEGIC PARTNERS

“

I learned through my journey that possibilities are always there; it’s up to us as to what we can make possible. It’s crucial to bring on the right people who can hit the ground running like soldiers.

“

Attendees were invited to network with industry experts as well as the winners and finalists during the event.

the way. “Being an entrepreneur is fantastic for a number of reasons. I learned more in 2011 and 2012, than any college or university has ever taught me about doing business. I learned about cultures and corporate world, and experienced the real challenges first hand,” he said.

When asked about his general observations on the topic of Emirati entrepreneurship, Abdullatif seemed optimistic about the younger generation: “I can see a new generation that is looking beyond financial satisfaction with a new spirit of personal accomplishment.

This attitude is starting to change. We are seeing good signs, Emiratis are now accepting other types of roles such as sales jobs.

We are also doing this to set an example, and this is a reason in itself to be successful.”

KNOWLEDGE PARTNER

BUSINESS COMMUNITY PARTNER

SUPPORTING MEDIA PARTNERS

PUBLISHER

About the winners

Robert Keay

David Cook David Cook founded UAE-Compare.com in 2010 after moving from Wales to the UAE with the intention of starting his own business. Previously, he has worked for over six years in the banking sector in the UK.

UAE-Compare.com

The company offers 360 degree commercial and retail fit-out solutions in commercial and retail interior design, furniture supply, IT and infrastructure, security and CCTV, relocation and removal services. The company was also named a finalist for the 2011 Stars of Business Awards.

PRESENTING PARTNER

EXCLUSIVE TELECOM PARTNER

INSURANCE PARTNER

Robert is the owner of Ethos Consultancy, a Middle Eastern customer service consultancy and provider of training and software solutions. Established in 2004, Ethos is now a multi-million sollar turnover business with offices in Dubai and Abu Dhabi. Robert originally set up his own consultancy and training firm in the UK in 1995, having spent the previous six years as Co-owner of one of the UK’s leading customer service training and consultancy firms.

Ethos Consultancy

The company specialises in delivering excellence in customer service solutions across the Middle East. It has developed a range of customer service solutions that help clients achieve a sustainable competitive advantage in the field of service quality. It assists clients within a broad spectrum of industries to accomplish a bottom line financial improvement.

STRATEGIC PARTNERS

KNOWLEDGE PARTNER

Abdullatif Alsayegh Abdullatif Alsayegh is an Emirati entrepreneur and media pioneer who has built a brand around the needs of both local and global companies.

Before founding his company in 2010, he was CEO of Arab Media Group and managed a large portfolio of media assets for the Dubai Government.

Al Sayegh Media

Al Sayegh Media is an agency that specialises in digital and traditional media.The company has been built to provide a long list of services including PR, Web development, events and branding, just to name a few.

BUSINESS COMMUNITY PARTNER

SUPPORTING MEDIA PARTNERS

SME ADVISOR Middle East

PUBLISHER

February 2013

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ENTREPRENEURSHIP

The business case for women empowerment We take a closer look at the potential economic impact of integrating millions of educated women into the world of business.

I

f the gender gap was to be reduced in the labour market by just half in a country like the UAE, research shows the annual growth rate, in GDP, would jump over seven per cent. In Egypt, it would rise close to eight per cent, while in a low participation market like Saudi Arabia, the economic impact would be explosive with an estimated 8.45% increase.

Measuring the gender gap Joumana Saad CPI Business

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February 2013

This is the main point being driven home by Booz & Company’s global report on Empowering the Third Billion: Women in the World of Work. The Third Billion refers to tthe number of educated women around the world who could enter the global economy during the coming decade. The company recently co-hosted an event with the Chicago Booth UAE Alumni Club in Dubai, which showcased the report’s findings, and at the same time, brought together experts from around the MENA region to share their insights and policy recommendations.

The MENA region was a major area of focus for the global report, which sought to analyse the economic potential of empowering and integrating more educated into the workforce. The majority of MENA countries ranked at the bottom of the global index in the areas of economic integration. Even with the UAE’s progressive environment, it still scored a less than stellar overall ranking 109 out of 128 countries, while Egypt stood at 108 and Saudi Arabia ranked at 123, respectively. However,

SME ADVISOR Middle East

looking at the different areas of the index, women scored higher in education and preparation and lower in access to labour market.

The report also put a major focus on promoting entrepreneurship and its contribution to the overall economic empowerment of women. The research was done with the intention of better understanding the data gaps and the experience of successful women entrepreneurs.

Until recently, economic data on women employment and entrepreneurship has been scarce, especially in this region. Survey-based research by the World Bank shows that only 17% of firms have female participation in ownership, compared to a 35% world average. It is also important to mention that overall entrepreneurship levels in the MENA region are among the lowest in the world: from 2004-2006 only .6 new firms per 100 adults were created in MENA, compared to 4.2 in high income countries, 2.2 in Europe and Central Asia and 1.3 in Latin America (according a new OECD report on New Entrepreneurs and High Growth Enterprises in the Middle East and North Africa).

Spotlight on Saudi Arabia

It’s safe to say that the MENA region, for the most part, has nearly closed the gender gap when it comes to education, as statistics show that women have equalled, and in many cases exceed the number of male college graduates. Interestingly,

Microfinance is not enough

Looking at the available relevant data, a large portion of the women who are in business in the MENA region are limited to microfinance, depending on very small funds. As a result, their businesses are unable to grow and lack adequate resources and support institutions that cater to them specifically, as opposed to just entrepreneurs in general. “Micro firms often operate in the informal sector, which limits their ability to access formal financing for growth and to export to new markets. Creating incentives to encourage these firms to enter the formal economy could be a first step.

Especially for women-led firms, micro financing has made a major impact,” says Nicola Ehlerman-Cache, Senior Policy Analyst, OECD MENA Investment Programme and Project Manager of the Women’s Business Forum. “Greater efforts are needed to expand

Experts, economists, investors and women entrepreneurs and SME owners and managers from around the MENA region, gathered in Dubai for the conference, which highlighted the Empowering the Third Billion report.

financing so that women entrepreneurs who graduate from the micro financing stage can access commercial credit and grow their businesses, thereby contributing to competitiveness and job creation,” she added.

Policy and enforcement

On the policy side, such issues have been addressed time and time again on paper. Most MENA governments have in fact developed elaborate policies to improve women’s economic and social status, and have also made commitments of the same nature. For example in 2007, MENA Ministers endorsed a Declaration on Fostering Women’s Entrepreneurship in the MENA Region, committing to integrate women’s entrepreneurship in broader efforts to support SMEs and entrepreneurship. The issue, however, exists in the actual implementation of these policies, as these committees do not have enough sway with economic ministries, leaving any issues and policies relating to women often sidelined and not included in broader policy efforts to support SMEs. According to the Third Billion report, the biggest obstacles to women’s integration in the MENA region

“

Greater efforts are needed to expand financing so that women entrepreneurs who graduate from the micro financing stage can access commercial credit and grow their businesses, thereby contributing to competitiveness and job creation.

“

they outnumber men in Saudi Arabia, making up 57% of graduates, according to the Booz & Company report. Of this 57%, only 12% are integrated in the workforce, and most of these educated women end up joining the public sector. “We are trying to help incentivise the private sector to hire women there through a lot of initiatives through the Ministry of Labour. There needs to be more education and outreach about opportunities in the private sector and what it can offer. Another issue is that women are not really into entrepreneurship, and there are no real financing channels for women or even a one stop shop where women can go to learn more about entrepreneurship opportunities and training,” says Mounira Jamjoum, Senior Research Specialist with Booz & Company, who co-wrote the Third Billion report.

Mounira, a Saudi national, has seen firsthand how the Arab Spring has changed cultural perceptions in Arab countries. It has played a pivotal role in calling for a new focus on job creation while taking into account groups who have been sidelined by governments in the region.

“Women are more visible after Arab Spring and they’ve shown that they have a voice. We believe that the Arab spring has done something very important which is to raise the issue of inclusive economic development to include youth, women and minorities. This has been a very important issue, in which these types of discussions were launched after this event,” says Mounira. Recently, Saudi Arabia has taken some small steps by allocating 20% of its Shura, or advisory council, to women.

Mounira says such a move sends a positive message to a younger generation and she sees it as a sign that more proposals of this nature will be forthcoming. “It’s an advisory council to council of ministers, it’s not a legislative council, but at least they will be at the table.

We hope to see women in council in ministers within next few years,” she predicts.

Another positive story which has surfaced in Saudi Arabia, proved just how powerful social media can be in campaigning for change. After four years, Reem Asad, an investment analyst at Saudi Fransi Capital and women rights advocate is now seeing her efforts paying off. After campaining through Facebook to have women replace all men employees working in lingerie shops, federal decree was issued to grant her wish. This resulted in over 40,000 jobs being created for women in the Kingdom. Reem had the pleasure recently, to see the decree begin to be implemented.

are: the availability of childcare, cultural barriers and stereotypes, lack of financial support, regulation of microfinance and a lack of support institutions in place to help and encourage women’s involvement. Any forthcoming legislation must take such issues into account to ensure a real increase in participation.

During a keynote presentation during conference, Dr. Nasser Saidi, Former DIFC Chief Economist, presented exclusive data which highlighted the economic potential of integrating millions of educated women in the regional

SME ADVISOR Middle East

February 2013

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ENTREPRENEURSHIP workforce. He stressed the role of the governments in drafting the right laws and enforcing the laws across the public and private sectors. He noted that currently, the private sector lacks incentive to hire women, and this has largely contributed to the marginalisation of business women and women entrepreneurs in the MENA region.

“There’s no question that more research and affirmative action in this area must be carried out. These issues facing women should be taken into account on various ease of

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There’s a bi-directional relationship between economic development and the empowerment of women. The gender inequality issue in the MENA region is creating a waste of human capital, as a large percentage of countries’ populations have the potential to contribute but are currently unproductive to the economy.

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doing business indicators being used in the GCC, for example,” said Nasser. He added: “There’s a bi-directional relationship between economic development and the empowerment of women. The gender inequality issue in the MENA region is creating a waste of human capital, as a large percentage of countries’ populations have the potential to contribute, but are currently unproductive to the economy,” he added.

products. Credit is available to some extent but more is needed,” she said. “In Egypt, there are cultural reasons preventing women from accessing finance, regulatory constraints such as starting a formal business, financial reasons related to access to collateral, to finance and to affordable business development services. It was always the public sector that was the friendly employer to women and now, employment in the public sector is shrinking, and the private sector employers tend to employ men,” she added.

From Egypt’s perceptive, the Arab Spring has brought both progress and a whole set of new challenges. “The economic and political transition since then has hurt business for men and women owners alike. The development of institutions such as a new parliament should be seen as an opportunity to introduce an enabling environment and introduce incentives for small business development and growth.” She also explained how the government is now supporting the formalisation of the informal sector. “On one hand, this allows informal businesses access to market access to finance, but on the other hand, it adds costs to small businesses and might necessarily represent an opportunity for women business owners,” she explained.

Among Ghada’s recommendations are increasing entrepreneurship education in school curricula, creating special funds for startups and for women, supporting the use and avaiability of IT and technology and creating a package of incentives for job creating investments. Such suggestions would be no doubt beneficial to forthcoming labour law drafts in a number of Arab countries that are looking to make headway on the job creation front.

Equality issues in Egypt

Sharing the perspective of Egyptian women during the conference was Ghada Waly, Managing Director of Egypt’s Social Fund for Development. During a panel discussion, Ghada spoke about the lack of business development providers, entities and experts to help with the eco system for business and support services to SMEs in the country. “Credit is not enough; businesses need mentoring and they need a diversity of financial

Ranking: Third Billion Index

UNITED ARAB EMIRATES

SAUDI ARABIA

RANK

RANK

109

123

out of 128

out of 128

38.4

34.2

SCORE

Women: largely employed in public sector (42.6% of total national female labour force in federal govt depts, 35.9% in state govt depts).

Interestingly, Emirati women on average work more hours than men - 56.6 hours per week, compared with 51.6 hours for men.

SCORE

Women: 57% of university graduates; but underrepresented in workforce – FLFPR = 12% in 2008 & work predominantly in public sector (6.9% female Saudis work in pvt sector). Unemployment rate for women = 28% (men: 7%) Both women in workforce and entrepreneurs, a small but growing number, are inhibited by restrictions on women’s mobility, both within KSA and abroad

Source: Booz & Company, Empowering the Third Billion report

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SME ADVISOR Middle East

EGYPT

RANK

108 out of 128

38.6 SCORE

Women achieved near parity with men in education; 30% household heads are women.

Women unemployment rate at 23% vs. 6% (men) 20% of all firms are owned by women, spanning a broad range of industries Need to change regulations: lacks laws against gender discrimination; govt subsidies biased in favour of men

Paving the way forward

The experts at the centre of these issues have mixed feelings when it comes to their outlook for the future of women in business. “There is certainly a risk that women’s issues are sidelined during this time of change in the region.

The women’s community was highly mobilised during the revolutions of 2011, but more efforts are needed to ensure that progress made in women’s rights over the last decade is not lost,” says Nicola.

Ghada is of the belief that women in this region already possess a lot of the qualities that make entrepreneurs and SMEs successful. “Women are resourceful, they need to generate income, be it from formal or informal types of jobs, and if provided with the needed support systems, many will opt for self-employment by creating their own enterprises.

It is the way forward for youth both men and women as governments are not creating jobs in the numbers needed,” she says.

Going forward, Mounira says that visibility will be a key factor in closing the gender labour force gap. “We consider visibility one of the most important issues for women in workforce. If you take Argentina for example, about 23% of parliament are women, and they are facing a lot of the same issues as women in this region, but that visibility in leadership visions has had a real impact on women penetrating the workforce,” she says. She added: “In the GCC and Arab countries, you will find female ministers, however businesswomen are not that visible, and the ones who are succeeding tend to create a wall around themselves,.

These women should really be participating in outreach, accelerator programmes and other initiatives being created for women here.”

MANAGEMENT

A blueprint for

talent management Businesses and organisations are rediscovering the various benefits of competency-based management systems.

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SME ADVISOR Middle East

Y

ou may have heard about competencies or competency-based management and its overall impact on organisations. This method of talent management has been around for over 30 years, yet interestingly enough, it has not been embraced on wide level by businesses and organisations until about a decade ago. This is mostly due to technological advancements and the increase in availability and accessibility of the metrics.

Joumana Saad CPI Business

“

competency-based management solutions. Capitalising on a growing market need, the company has been successful in implementing competencies across industries in the public and private sector throughout Canada and North America. It now has its eyes set on the MENA region, as organisations look for new ways to develop and retain their employees. Previously, the company has worked with a number of organisations in the UAE including Dubai Customs and Dubai Ports.

Integrated approach

Looking at the overall structure and process, it may first come across as a rather complex method with a lot of moving parts. The more you read about it, however, you begin to realise the simplicity, structure and efficiency it can provide to businesses of all sizes. According to a Talent Acquisition Study by Aberdeen in 2012, 67% of surveyed organisations indicated that their competency models are linked with their learning and development initiatives, while 61% of respondents said competencies were integrated with performance management.

Dr. Suzanne Simpson founded Human Resource Systems Group (HRSG) over twenty years ago, which is a Canada-based HR consultancy and provider of

Competency is really what it takes for professionals to be successful individually in that particular position. It starts with defining what it takes to be successful in various jobs and what will drive growth. In order to be successful, you have to do that through people, and people must have competencies to drive success; it all links together.

“

Gap analysis

learning plan

Scalable solutions

During my interview with Suzanne, she informs me of how she has just returned from Saudi Arabia, where interests is growing for these type of management solutions. The company has already implemented competency models for a number of companies in the banking, petrochemicals, energy sectors, as well as government divisions in the region.

Its main mission will be to spread the word about the benefits of its Competency Core solution designed to help SMEs and larger corporations monitor and manage their talent according to the organisation’s goals. “Competency is really what it takes for professionals to be successful individually in that particular position. It starts with defining what it takes to be successful in various jobs and what will drive growth.

In order to be successful, you have to do that through people, and people must have competencies to drive success; it all links together,” says Suzanne.

The solution, offered as software and also through a cloud-based system, provides an integrated system and tools to help organisations manage their people in the areas of recruitment, development and training, succession planning and retention, all of which can be accessed and modified using one streamlined system. It also comes with a library of competency job profiles, which organisations can use as a reference tool when recruiting, and then modify according to their individual needs.

Another service offered to SMEs is training, so that HR professionals can be brought up to speed quickly on how to use the software to improve talent management processes.

“If you’re an SME and spend a lot of your time focused on a specialty area or strategy, this offers you a quick start.

It’s based on best practice, and is well founded on research.

Competencies themselves have been research and valuated many times. Beyond that within the system you get template policies and procedures than SMEs can use to get started,” says Suzanne.

Recruiting and training tools

Competencies

Review & evaluation

learning activities

This type of management model is of significant value when it comes to recruiting, developing and training, succession planning and retention, as these remain real issues facing HR professionals today. Because it’s intelligently designed to bring in the best candidates for the job, it’s very effective in bringing down attrition levels, while more motivated and qualified recruits contribute to overall productivity. “The point is as simple as matching the person best suited for the job. They like it, they’re happy doing it, they do the job properly, and you will see them sticking around. If you don’t like your job, chances are you won’t be doing it that well,” says Ian Thomas, Regional Director, HRSG Middle East FZE.

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MANAGEMENT

By the numbers

67% 61% 78% 71%

of organisations indicate that their competency models are linked with their learning and development initiatives

of respondents say competencies are integrated with performance management

of Best-in-class organisations have visible senior leadership support for learning and development

of Best-in-class organisations assess individuals to identify gaps in required job role skills or knowledge

Source: 2012 Talent Acquisition Study, Aberdeen

Dr. Suzanne Simpson

In the recruitment phase, the solution provides a framework against standards in which the organisation recruits. So, right from the start, these standards are used in the selection process. For example, in the solution’s library section, you can find a whole set of questions matched to the individual role and competency profile. There’s also a huge amount of research that shows that this ultra-focused interview style and selection process can drive productivity and performance in the long term.

“It’s all about behaviours and assigning behaviours to roles to deliver your corporate goals with excellence. On the recruitment side, you know the job they’re coming into and you have the competency profile for that job. So, the candidate will be interviewed against those metrics,” says Ian. “As a result of this, you’re much more likely to bring in someone who fits the role right from the beginning. You end up saving on training costs as they are already skilled in the right areas.”

“

they are looking for. “If a young recruit understands what it takes to be successful in their current job, and other roles, and is given the tools to measure themselves against the requirements of the job, then they will be more empowered to manage themselves” adds Suzanne.

Some of the world’s leading companies have used competency-based management models for years.

Xerox is one example of how such tools can be used to deliver personalised training to its service engineers. The company developed a competency inventory based on the employee’s past performance, in which they can actually see the learning elements and gaps broken down across all technical aspects of their current role.

When done correctly, competency-based models can bring about positive change in many areas of a business. However, it’s important to mention that it’s not a copy-paste, one size fits all approach. Solutions can provide businesses with frameworks and reference tools, but it’s up to the management to decide how to use such tools to their benefit.

If a young recruit understands what it takes to be successful in their current job and other roles, and is given the tools to measure themselves against the requirements of the job, then they will be more empowered to manage themselves.

“

Using such a system can also empower businesses to make smarter decisions when it comes to training their employees. Over the last few years, the issue of training programmes and their return on investment have come under scrutiny as businesses fail to see the results they are looking for. This tools can be used to assess existing staff in their current roles, in an effort to identify skill and learning gaps that matter to the organisation’s bottom line and future goals.

Motivational factors

It also aims to address the Generation Y issue by allowing employees the option to self-assess their skills levels and performance and against other roles in the organisation, as well as identify learning gaps which they can fill through training. Today, managers are finding it increasingly difficult to keep younger employees interested and motivated in their roles. With a competency model, there’s a certain level of transparency and engagement, which may just be what

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February 2013

SME ADVISOR Middle East

Source: HRSG

The World’s Most Important Gathering of CIOs and Senior IT Executives Focus. Connect. Lead.

Join more than 500 CIOs and senior IT executives at the inaugural Gartner Symposium/ ITxpo on 5 – 7 March in Dubai. This global conference spans across 7 countries and is held throughout the year, offering the most comprehensive and strategic insight for IT to help drive the business forward.

Your source for actionable insight in IT and world-class networking Symposium is designed to provide you with direct access to relevant and actionable new research for the Middle East along with many opportunities to network with highly qualified senior peers across targeted roles and industries.

Research specific to the Middle East Sessions will cover these key IT and business focus areas of this region: • Workforce Management • Leadership Development • Business Intelligence • Mobility

• Sourcing and Vendor Management • Governance • Infrastructure • Security

Industry specific content is also featured throughout the agenda for: • Government

• Financial Services

• Energy and Utilities

View the most comprehensive IT agenda for 2013 at gartner.com/me/symposium and register your place now!

LEGAL

Levelling the playing field Waldo Steyn of Al Tamimi & Co., provides an analysis of the new competition law governing the UAE, and how it will impact the day-to-day operations of businesses.

O

Waldo Steyn Al Tamimi & Co.

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February 2013

n 5th December, 2012, the European Commission imposed the biggest antitrust penalty in its history – EUR 1.47 billion (USD 1.92 billion), against six firms for running two cartels for nearly a decade.

With the EUR 1.47 billion fine issued by the European Commission and considering the lack of a consolidated competition law in the UAE, businesses here may have been excused for being tempted to focus only on their competitive activities related to operations in Europe.

However, with the publication on 23rd October 2012 of UAE Federal Law No. 4 of 2012 Concerning Regulation of Competition (the Law), all businesses with operations in the UAE, or supplying goods and services to the UAE market, will have to ensure that they focus on and comply with the provisions of this new law.

On 23rd February, 2013, the Law will come into force in the UAE regulating specifically competition in the

SME ADVISOR Middle East

form of restrictive agreements, the abuse of dominant position and economic concentration. With significant new penalties now being imposed for the contravention of the Law, it must be a priority for businesses operating in the UAE to consider the compliance of their local, and wider, operations with this new legislative framework.

This article is an introduction to the new Law and aims to provide a general overview of the Law only.

Objectives of the law

A very interesting and unorthodox legislative style from the UAE legislator was to introduce an opening provision clarifying the policy behind the Law. There’s no doubt this approach will help the Courts, Competition Regulation Committee and practitioners to place the provisions of the law into perspective.

About Waldo has extensive experience in intellectual proper ty related matters throughout Africa and the Middle East, having managed all aspects of the protection, enforcement and maintenance of rights throughout this region. His technology experience includes having acted as legal advisor to South Eastern Trains in the United

The objectives of the new law are set forth in Article 2 as being twofold: (i) Providing a stimulating environment for establishments in order to enhance efficiency, competitiveness and the interest of consumers and to achieve sustainable development in the UAE; and (ii) Keeping a competitive market governed by the market mechanisms in accordance with the economic freedom principle through banning restrictive agreements, business and actions that lead to the abuse of a dominant position, controlling the operations of economic concentration and avoiding all that may prejudice, limit or prevent competition.

Kingdom during 2005 with responsibility for its technology requirements, including the development, implementation and maintenance of safety critical systems.

Waldo’s areas of specialisation are technology, media and the commercialisation of intellectual property rights and he regularly advises clients in respect of

technology acquisition, implementation and maintenance, outsourcing, data protection under local laws, e-business, content regulation and transactions, event management, and commercial intellectual property matters.

For more information, visit www.tamimi.com

As a result of the scope of the application of the Law, individuals, corporates and syndicates will have to consider their activities carefully, whether in respect of franchising rights, intellectual property licensing, mergers and acquisitions or other commercial activities, to ensure proper compliance with the Law, and to consider how their business practices in other jurisdictions may impact competition in the UAE in light of this new Law. The Law provides for specific exclusions in respect of regulated sectors that have specific competition rules including telecoms, financial and transport sectors.

Anti-competitive practices: Restrictive agreements

The Law is arranged into a number of chapters, which include definitions and the objectives of the Law, as well as: • Application of the Law (dealing with some exclusions); • Anti-competitive practices; • Restrictive agreements; and • Abuse of dominant position; • Economic concentration; • Penalties; • Competition regulation committee; and • Responsibilities of the Ministry of Economy.

New concepts

It will be noted from the stated objectives of the Law that the Law introduces two important new concepts to the regulation of competition in the UAE, in the form of the terms dominant position and economic concentration. These terms are defined as follows: Dominant position This is the position that enables any establishment, by itself or in participation with some other establishments, from dominating or affecting the relevant market.

Economic concentration This is any behaviour from which a total, or partial alienation, (merger or acquisition) of a property or usufruct of the properties, rights, stocks, shares or liabilities of an establishment to another establishment shall result and that may enable one establishment, or a consortium of establishments, from controlling, directly or indirectly, another establishment or a consortium of other establishments.

The restrictive agreements which are considered prohibited are mentioned as a non-exclusive list of examples, and include agreements that have the objective or effect of: a) Price fixing; b) Determining conditions for sale or supply of services; c) Colluding in bids, practices and supplying offers; d) Market sharing and division and allocation; and e) Limiting the free flow of goods and services to lead trade therein subject to artificial prices.

“

As a result of the scope of the application of the Law, individuals, corporates and syndicates will have to consider their activities carefully, whether in respect of franchising rights, intellectual property licensing, mergers and acquisitions or other commercial activities to ensure proper compliance with the Law, and to consider how their business practices in other jurisdictions may impact competition in the UAE in light of this new Law.

“

Structure of the law

The provisions of the Law related to restrictive agreements accordingly appear to restate at least some existing provisions contained in the Executive Regulations to the Consumer Protection Law, with more detail and with significantly more severe penalties.

Anti-competitive practices: Abuse of dominant position

Application of the law

The Law provides that the provisions of the Law shall be enforced on all businesses in relation to their economic activities in the UAE. The Law further applies to the exploitation of intellectual property rights, whether in the UAE or abroad. Interestingly, the Law may also be enforced against economic activities outside of the country that impact competition in the UAE.

The Law introduces the dominant position concept into the regulation of competition in the UAE. Article 6 of the Law provides that a business with a dominant position in a market sector, or in a main and effective part thereof, shall be prohibited from performing actions that lead to the abuse of such position in order to prejudice, limit or prevent competition. The Law lists a number of non-exclusive actions that are prohibited, including those with the following objectives:

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LEGAL

“

• Imposing the prices, or conditions of reselling of commodities, or services directly or indirectly.

• Selling a commodity, or performing a service with a price less than the actual cost thereof, with the aim of hindering competitive establishments from entering the relevant market, excluding them from such market, or causing them losses that prevent them from continuing their activities.

• Discriminating with no justification among clients in identical contracts in relation to the prices of commodities and services, or the conditions of buying and selling contracts.

• Obliging a client not to deal with a competitive establishment.

Both restrictive agreements and instances of the abuse of a dominant position can be exempted from prohibition subject to approval of the Minister of Economy and provided the agreement or activity will actually result in enhancing economic development and competitiveness in the market.

“

• The total or partial rejection to deal in accordance with the usual commercial conditions.

• Unjustified abstinence from dealing in commodities and services through buying, or selling, or limiting, or hindering such dealing that may lead into imposing an unreal price thereof.

• Suspending the concluding of a buying or selling contract on the condition of accepting obligations concerning other commodities or services unrelated to the original contract.

• Purposively publish incorrect information about the commodities or its prices.

• Decrease or increase the available supply of the commodity so as to create an artificial scarcity or abundance of the commodity.

The threshold for what percentage of a market share shall be deemed to establish a dominant position shall be determined by Cabinet decision.

It is of interest to note that both restrictive agreements and instances of the abuse of a dominant position can be exempted from prohibition subject to approval of the Minister of Economy and provided the agreement or activity will actually result in enhancing economic development and competitiveness in the market.

Economic concentration

Articles 9 to 11 of the Law deal with economic concentration, the threshold for which is also to be determined by Cabinet decision. The Law requires a 30 day advance application to be filed with the Ministry for approving an acquisition or merger transaction, providing as follows:.

• The Ministry of Economy may approve an economic concentration transaction if it would not have a negative impact on competition, or if it would have a positive economic impact that outweighs any negative impact on competition.

Penalties and court proceedings

ThenewLawprovidesforharshpenaltiesthatareunprecedented in UAE legislation which range from AED 500,000 up to AED five million. The penalties may also be imposed based on the percentage of annual sales in the cases of non compliant economic concentration transactions.

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Furthermore, upon conviction, the court may order a business to be closed for a period of no less than three months and no more than six months.

All competition court cases have been granted the advantage of expedited cases and the Law allows for interim relief and temporary injunctions pending final court judgment.

With respect to criminal proceedings, the Law stipulates that the Minister’s approval is required for initiating any criminal prosecution of acts contrary to the Law. The Law also authorises the Minister of Economy to reconcile any contravention of the Law before a criminal case is transferred to the Criminal Court in return for a settlement amount equivalent to no less than double the minimum fine.

It is important to note that the Law specifically provides that no penalty issued against a party will prejudice the right of an aggrieved party to seek compensation from that offending party for damages resulting from its unlawful actions.

The financial risk to businesses contravening the Law is accordingly not limited to the penalties provided for, but extends to possible civil claims for damages.

Competition Regulation Committee and the Ministry of Economy

The Law provides that a Competition Regulation Committee shall be established and shall be chaired by the Under Secretary of the Ministry of Economy. This would probably be a factor that may impact the application of the Law in a smooth and timely manner.

It is no secret that Government committees struggle to convene when their composition is made up of very busy public sector officials and prominent businessmen. In most cases, the Committee Chair is engaged in multiple committees and attending to various matters, all of which are important, which renders the possibility to convene hostage to the work load of the chairperson.

Gaps

The Law has not provided a clear exemption or a specific treatment to family businesses government and semi-government entities.

Obviously a family business acquisition of another business in the same group which may raise dominant position concerns may still qualify and enjoy exemptions to be approved by the Minister.

However the importance of family businesses to the economy makes it worthy to address separately provisions regulating this valuable constituent of UAE businesses.

Transactions occurring in the stock market demand speed which would also require specific treatment and not subject to the timelines requiring compliance in respect of economic concentration transactions.

Regional arrangements with competition regulatory bodies would seem to be a sensible approach for corporations having to comply with rules in a neighbouring state. If the plan is to accomplish harmony between GCC states, regulating competition should no doubt also be at the top of the list of matters for harmonisation of laws and practices.

Overview

The enactment of UAE Federal Law No. 4 of 2012 Concerning Regulation of Competition is an important step in the evolution of competition law in the UAE. The Executive Regulations to the Law and the thresholds determining market power will add the necessary details to this Law. At this time, it is critical for businesses with operations in the UAE or supplying goods and services in the UAE to ensure that their operations (in the UAE and beyond its borders) comply with the new Law, prior to it coming into force in February 2013.

Industry Watch

Export value reaches record high Dubai Chamber’s annual 2012 report reveals the value of member exports rising nine per cent, compared to the previous year.

Iraq is largest non-GCC export market

9%

AED

rise in export value of Dubai Chamber members in 2012

41.7 billion

value of exports to Iraq, the top non-GCC export market for Dubai Chamber exporters.

17%

rise in member exports to Kuwait and 11% to Bahrain

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he value of exports of 11,110 of Dubai Chamber members to 210 destinations in 2012, based on a data of the Certificates of Origin (COs) issued during the year, reached a record high of AED 268 billion with a year-on-year growth of nine per cent, revealed a recently-released Dubai Chamber of Commerce and Industry analysis.

According to the report, the value exceeded by 26% to the pre-crisis level of AED 213 billion in 2008 while export and re-export value rose from only AED 23 billion in 1996 to more than ten times the value in 2012.

GCC is largest destination

In its analysis of the GCC market, the report pointed out that the value of export to GCC member countries expanded by 18% in 2012 to a total of AED 136.7 billion, or 51% of the total value for the year. A major contributor to the growth was Saudi Arabia, where the export value of AED 71.6 billion accounted for more than a fourth (27%) of the total value and 52% of the total export to the region. The value posted a year-on-year growth of 21%.

Exports to Qatar and Oman had actually expanded at higher rates of 26% and 35%, respectively. However, the respective values were much lower at AED 20.2 billion and AED 10.2 billion. Double-digit growths were also noted for exports to Kuwait at 17% to AED 17.2 billion; and to Bahrain 11% to AED 3.4 billion.

Meanwhile, trade between companies inside Dubai’s customs territory and those in the free zones and duty shops of the UAE narrowed by four per cent to AED 13.7 billion, the report said.

Improving economic condition and rehabilitation of Iraq’s oil industry had pushed demands of the country to high level, making it the largest nonGCC export market of Dubai Chamber members.

Value of export to the country rose by 354% to AED 41.7 billion, from a year ago value of only AED 9.2 billion.

Despite the downturn in export to Egypt during the brief period of unrest, demand immediately recovered and even expanded with the conflict resolution. This is reflected in the annual growth of 34% in Dubai Chamber members’ exports to the country, with the value increasing from AED 4.4 billion in 2011 to AED 5.9 billion in 2012.

HE Hamad Buamim, Director General, Dubai Chamber, stated that the Chamber members’ exports and re-exports in 2012 showed record growth thanks to their expansion into promising markets of the world. This also shows how the trade sector is once again the leading driver of Dubai’s economic engine while the emirate’s appeal to the global investors is on the rise as is the competitiveness of Dubai businesses in the global arena.

Members’ level of activities also high in 2012

In 2012, no exports were made to 18 small markets where exports worth AED 16 million were shipped in 2011. However, value of exports to the 199 stable export markets increased by nine per cent; thus, sustaining the growth of exports for the year.

Export to the 11 new small markets for the year was minimal at only about AED four million. These figures show that regular exporters tend to be trading with more export markets than the irregular exporters. The average number for the regular exporters further increased to 4.4 in 2012.

Compared to 2011, relatively more exporters in 2012 had exported goods valued at more than a million dirhams. They accounted for 48% of the total number of exporters during the year, while corresponding number in 2011 was only 43% of the total number of active exporters during the year.

In terms of export value, exporters with at least AED one million export values in 2012 had total export of AED 266.4 billion, or 99% of the total for the year. Total export of the corresponding group in 2011 reached AED 243.9 billion, for the same share to the year’s total. Also, average number of markets exceeded 10 among exporters with at least AED 100 million export value during both years.

Boosting EMPLOYEE MOTIVATION A recent survey conducted by Bayt.com and YouGov, finds that employees in the UAE consider a good work-life balance to be a key source of motivation.

T

op motivators

The Employee Motivation in the MENA survey found that on a day-to-day basis, more than half of the employees in the UAE (56%) feel that they are either highly motivated (28%) or motivated (28%) by the work that they do. Interestingly, a solid three-quarters (75%) of UAE respondents believe that a good work-life balance is a very important source of motivation, with 60% claiming that their current organisation offers support for them to achieve this (this is two per cent higher than the regional average of 58%).

Other than work-life balance, the leading motivators for employees across the Middle East and North Africa (MENA) region are recognition of work and achievements (47%); training and development opportunities (45%); the opportunity for career advancement (42%); being able to feel that their work has an impact (40%); personal fulfilment (39%) and opportunities for long-term career growth (39%).

“Retaining quality performers simply adds to increased productivity and morale, while reducing the associated costs of turnover,” said Suhail Masri, VP of Sales, Bayt.com. He added: “Our survey’s results show that companies need to be doing more to help boost levels of motivation for the employees, specifically on the work-life balance front as that’s what matters to most professionals.”

To help increase retention levels, the incentives that respondents claim are most important to them are monetary rewards (55%); certificates (35%); time off (19%); medals, or plaques of achievement (14%), and functional awards, such as gym memberships, discount vouchers and so on (13%).

Attitudes towards work

Across the MENA region, the majority (92%) of respondents feel that the work that they do is significant to their company, with 86% stating that their job is significant and important to their colleagues, customers and business partners.

Also, 72% believe that their work is important to their country of residence, while 72% say that what they do is significant to their society.

Three-quarters (76%) claim that their work gives them a sense of personal achievement, with 77% stating it offers them a sense of professional achievement.

Attitudes towards work

75%

of UAE respondents say a good work-life balance is key to their motivation

47%

of MENA empoyees say training and development opportunities are key motivational tools

23%

of MENA employees claim to always work overtime or take work home with them

In the UAE, respondents’ personal attitudes towards work are high, in accordance with regional sentiments. 92% say that their job is significant to their company; 87% say their job is important to their colleagues, customers and business partners; 70% state that what they do is important to the country, and 67% believe their job is important to society. Three-quarters state that their work offers them a sense of personal achievement (75%), and a sense of professional achievement (74%).

Loyalty and management

On a regional level, respondents are most loyal to their profession, followed by loyalty to their customers, clients and business partners.

Those who command the least loyalty are line managers, with only 44% saying their manager communicates what is going on in the organisation to them.

Respondents from the MENA also believe that 54% of line managers consult with them enough on matters of importance; 53% challenge their employees to achieve their best and 50% give formal appreciation following a job well done.

Line managers are perceived to be committed to their companies by 78% of respondents, as well as being open to suggestions (65%) and supportive if the respondent has a problem (62%). In the UAE, only 43% believe that their management takes the time to listen to their concerns and suggestions.

SME ADVISOR Middle East

February 2013

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Industry Watch

Industrial expansion HE Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, has lauded the growth of the industrial sector reflected in the strong contribution of petrochemicals and down-stream products to the economy.

“

Gulf countries have invested billions of dollars in the petrochemical industry, and what is required today, is to export these products to the right countries.

“

900

companies from 41 countries participated in Arabplast 2013

Arabplast 2013 proved to be

34% bigger than in 2011

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H

E Al Mansoori said that the UAE industrial sector contributed 16% to the GDP in 2012, and this percentage is expected to rise up to three per cent in 2013. Al Mansoori said the UAE industrial sector was driven by three key pillars: petrochemicals, aluminium and steel.

Al Mansoori who was speaking after the inauguration of Arabplast 2013, stressed the importance of plastics and petrochemicals industry as the UAE has made remarkable growth in the production of raw materials and in adopting best technologies and practices from countries like Germany, Austria and Japan.

Al Mansoori said that petrochemicals play an effective role in bridging the importexport imbalance between the UAE and countries in North America and Europe, as the UAE can give greater emphasis to export of petrochemicals. He also acknowledged that the Gulf countries have invested billions of dollars in the petrochemical industry and what is required today is to export these products to the right countries. He added that the UAE was emerging as a key player in exporting knowhow to different countries in the world.

The show, co-organised by Messe Düsseldorf Germany and Al Fajer Information and Services,

has emerged as the one of the top trade shows in the in its category. This year, Arabplast 2013 proved to be 34% bigger than the 2011 edition, following greater response from exhibitors and sponsors. A record number of 900 companies from 41 countries participated in Arabplast 2013. On display at Arabplast 2013 are new products and technologies in injection moulding, blow molding, wrapping and packaging, pre and post plastic processing techniques, as well as raw materials, such as additives and polymers. The show covers a wide spectrum of plastic machinery, plastic and rubber processing technology, pre and post-processing systems, plastic packaging technology, injection moulding, blow moulding, wrapping technology, extrusions, chemicals and additives, semi finished goods, engineering plastics and plastic products.

Companies from Argentina, Austria, Belgium, Canada, China, Cyprus, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Iran, Italy, Jordan, KSA, Korea, Lebanon, Malaysia, Norway, Oman, Pakistan, Poland, Qatar, Russia, Serbia, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, Netherlands, Turkey, UAE, UK, USA and Vietnam participated in the show.

Guiding SMEs towards sustainability Policy makers, regulators and finance professionals must help small businesses adopt sustainable business practices, says the Association of Chartered Certified Accountants (ACCA).

29%

SMEs in EU have introduced sustainability measures, compared with

46%

of large enterprises

4%

of SMEs have a comprehensive energy efficiency system.

D

espite representing more than 90% of global businesses and accounting, on average, 50% of gross domestic product and 63% of employment ,with a significant impact on industrial pollution, SMEs have been marginalised in the debate about sustainable business practices and have been slow to adopt environment-related improvements.

For instance in the EU, only 29% of SMEs have introduced measures to save energy or raw materials (compared with 46% of large enterprises) and only 4% have a comprehensive energy efficiency system.

In its new policy paper Embedding Sustainability in SMEs, ACCA’s Global Forum for SMEs has called on a number of groups to take action to help smaller businesses become more efficient and environmentally friendly.

A series of SME-specific measures and approaches will need to be adopted, if these efforts are to gain any significant momentum, – with policy makers taking into account not only the differences between large companies and SMEs, but also the differences between micro, small and medium-sized enterprises, says the report.

As many small businesses are run by ownermanagers, with no shareholders or boards to answer to, they have more freedom to implement sustainability practices, or ,to ignore them. This is why it is important that governments and business-support professionals ensure that SMEs are aware of the quick gains they can make through increased efficiency and of the grants, financial assistance and incentives that may be available for those which commit to cutting emissions or which reduce waste.

This includes conditions that are set so that only businesses with sustainable practices have access to large and potentially lucrative public sector supply chains. While small business owners need to become more proactive and strategic when it comes to adopting sustainable business practices, regulators also need to ensure that they “think small first” when it comes to developing regulations which are aimed at encouraging such practices, such as sustainability reporting.

The paper sets out a number of challenges for groups involved. SMEs need to follow five steps to sustainability reporting, which are: committing the business publicly to taking action; assessing the business’ impact; setting targets for reducing impact; acting to reduce impact and publishing the business’ policies and actions.

Accountants are urged to work with local environmental-sustainability experts in order to gain local access to credible knowledge; to review the environmental sustainability of their own business, then use that valuable experience to have rounded, relevant conversations, based on genuine experience, with their clients.

The paper says that accountancy bodies are urged to become more proactive in the SME sustainability debate, providing members with the right tools and resources to help them develop in this direction.

Mark Gold, Chairman of ACCA’s Global Forum for SMEs said: “All too often, small business is overlooked when it comes to environmental and sustainability issues. But in terms of economic activity, employment and waste, small businesses make a huge impact and it is critical that they and those who advise and regulate them, recognise this and begin to take steps to tackle waste, promote efficiency and ensure that sustainability is at the forefront of their thinking.”

SME ADVISOR Middle East

February 2013

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Technology for business

Samsung announces tablet updates Samsung’s Galaxy Note10.1 and Galaxy Tab 2 tablets will be updated with Android 4.1 Jelly Bean, and new stylus functions for these devices will be added through Samsung Premium Suite.

T

he update is for the Wi-Fi versions of the devices and finally brings Samsung’s tablets up-to-date with Jelly Bean, after the company slowly rolled out Android 4.1 to its phones in the fall. Android 4.2, meanwhile, has already begun appearing on some Nexus tablets.

The more intriguing features, however, come from the Samsung

Premium Suite, with special attention being paid to the capabilities of the stylus.

The Galaxy Note 10.1 was the first in the company’s line up to support a multi-windows feature so that users can run two apps side by side on screen. The feature later trickled through to the Note SmartPhones and Galaxy S3 phone. Now, Samsung has updated this feature for the Note 10.1 with a cascade view, which lets users freely resize, move and pin selected apps in multiple views, running simultaneously.

Air View is another interesting feature provided in this update; it adds functions to the use of a stylus. For example, users can hover the stylus across the scrubbing bar to preview thumbnails of the video section and then jump to a video. With the camera app, users can hover the stylus over an album to preview all the photos inside.

Air View also works with email allowing users to hover the stylus

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SME ADVISOR Middle East

over an attachment icon to preview a mail message. With the Web browser, holding the S Pen stylus over the edge of the screen will automatically scroll the user’s content.

Other Premium Suite updates to the Galaxy Note 10.1 are also to do with the S Pen. A new Quick Command feature lets users open frequently used apps by writing command shortcuts by way of either custom or preset stylus strokes. Users can write directly on their emails, send a handwritten note, or sign every email with their signatures.

Users can also record their sketching in the S Note app and play it back stroke by stroke.

The Android 4.2 Jelly Bean updates for the Galaxy Note 10.1 and Galaxy Tab 2 are available over the air or through Samsung’s Kies software, connected to a PC via USB cable.

Source: IDG, cnmeonline.com

Technology for business

HP serves up new storage protfolio As part of its Middle East storage roadshow, HP recently launched a new portfolio of storage platforms for enterprises of all sizes in the UAE.

T

he event saw the UAE launch of a number of new products, including the HP 3PAR StoreServ 7200 and 7400, the HP StoreAll platform, and the HP StoreOnce 2000 and 4000.

The StoreServ products, HP claimed, bring Tier 1 capabilities to the mid-range market, and StoreAll offers converged object and file storage services on a highly scalable platform.

The StoreOnce products, meanwhile, offer the industry’s only back-up and recovery solution with federated deduplication, the firm said.

According to HP, one of the range’s biggest draws would be the fact that it uses a single architecture across all of its products, from the entry-level to high-end solutions.

The Storage Event, recently held in Dubai, began with a keynote speech from Walid Gomaa, Storage Works Business Manager, HP Middle East, who stated that the firm had meticulously planned the release of its new storage solutions. He went on to preview HP’s storage strategies, and touched on the capabilities of the new range. “We took all of the characteristics, functions and capabilities of high-end products, and put them into midrange and entry-level products,” Walid said.

“The problem that our customers were facing before was that, in the mid-market segment, they wanted to have all of the features and functions of a high-end product, but they couldn’t afford it.”

HP claimed that its new StoreServ 7000 products can bring Tier 1 capabilities to customers for less than USD 40,000. The firm also said that, with one of the 7000’s related processes, it could “guarantee” customers they will save from 30% to 50% of space on their existing storage products.

Following Walid’s presentation, the floor was taken by Morad Qutqut, Presales Consultant

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Through an integrated approach that protects data, promotes flexible work styles, and simplifies the path to the cloud, Microsoft Windows Server 2012 Essentials gives small businesses the power to grow. Specially designed with small businesses in mind that are purchasing their first server, Windows Server 2012 Essentials is a central server that can automate important activities like online data backup and protection of computers; allow teams to easily share and organise business documents; provide a platform for running line-of-business applications; and provide remote access to data from any Internet-connected location or device, so businesses can spend less time and money worrying about technology and more on satisfying their customers.

The solutions are also combined with the Windows Server 2012 Essentials hybrid cloud server management dashboard, providing simplified management, and endpoint, server and web threat protection for a variety of devices, no matter how they are connected. This provides unified access for users to manage their entire business and security in one place. IT management costs are reduced with this integration,since no

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Team Lead, HP Middle East, who explained, in detail, about the capabilities of 3PAR technology and the StoreServ 7000 line, which uses 3PAR. “This technology allows your system to cope with numerous applications at the same time,” said Qutqut. “With the old technologies, you have to allocate parts of memory for different applications, and you have to factor in downtime. With 3PAR, you can add unpredictable workloads and not face any system downtime.” Walid added that government sectors, financial sectors and healthcare sectors had all adopted 3PAR technology. He also said that HP is currently the only company that provides this kind of storage solution.

HP added that it is expecting the StoreServ 7000 series, in particular, to take hold in the Middle East. Walid concluded: “We’re expecting that the 7000 will ramp up big-time in the mid-market area. The StoreOnce, in the back-up area, is a key requirement, too, because our customers are thinking about how to protect data and how to retrieve it. These two products, I would say, will be leading.”

The new StoreOnce products are, again, aimed at small to mid-size businesses. They come off the back of the recently released StoreOnce 6000 series, which increased back-up throughput to 100 terabytes per hour. HP claims that the new 2000 and 4000 models now bring the same capabilities to smaller businesses.

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Trend Micro Worry-Free Business Security solutions feature industryleading anti-malware and data protection. They give users peace of mind, knowing that their server, their business data, and their devices are all protected. It is protection that can grow as the business grows without needing to increase IT staff. The solutions provide a secure, centralised, webbased management console, integrated into the Windows Server Essentials dashboard, so users can manage all their devices from anywhere and always feel confident that data is safe. With Trend Micro Worry-Free Business Security solutions, machines are protected from viruses, spyware, spam, malicious websites, and more.

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Technology for business

Responding to the BYOD reality Sophos launches Sophos EndUser Protection, a new security offering that tackles the challenges associated with bringyour-own-device (BYOD), and the increasing number of devices used by today’s mobile workforce.

U

nlike traditional security products, which are licensed for each device separately, Sophos EndUser Protection provides consolidated protection for every device on a network by securing peruser rather than per-device. This means the organisation receives protection for all of a user’s devices, from Windows and Macs to mobile devices like iPhones, iPads, and Android devices, wherever users go.

Sophos EndUser Protection, the combination of the company’s award-winning endpoint protection and mobile device management (MDM) offerings, further alleviates the burden that BYOD places on IT, while providing businesses with a compelling licensing

Raising the bar for business apps SAP has praised the enterprise app potential of the BlackBerry10 (BB10) as the new SmartPhone launches worldwide.

SAP is among the companies set to have enterprise applications available to download from the launch. “SAP is committed to building beautiful, easy-touse mobile apps to help our customers run their business better,” said Sam Alkharrat, Managing Director, SAP MENA. “We are having a very good experience developing

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proposition unmatched in the industry. This fusion also simplifies and improves the security and management of every device employees are using to access corporate data.

“SmartPhones and tablets are an everyday part of today’s workplace, so businesses are adapting their policies and practices to ensure these devices don’t disrupt productivity or compromise, enabling users to do their work,” said Charles Kolodgy, Research Vice President, Security Products, IDC. “Sophos’ model of combining their endpoint and mobile device management offerings to secure users rather than devices can eliminate many of the costs and complexities normally associated with securing BYOD,” he adds.

In today’s business environment, employees are accessing data from both personal and corporate mobile phones, tablets, and laptops, whether they’re at headquarters, remote offices or on the road. According to the Cisco IBSG Horizons Study, in 2012, the average number of connected devices per knowledge worker was 2.8, and this number is projected to rise to 3.3 by 2014. While these figures express the average number of devices per knowledge worker, for many employees who travel frequently

enterprise-grade finance apps on the BB10 platform using the SAP Mobile Platform. With the SAP Mobile Platform the mobile app development community can build apps that can run on both the new BB10 and the existing BlackBerry platforms and devices.”

Mobility is a key part of SAP’s long-term global growth strategy to double its addressable market, reach one billion people and generate global revenue of 20 billion by 2015. “Mobility is central to our innovation agenda and a powerful technology trend that has broad and deep impact across both the enterprise and consumer markets,” added Sam. “There are tremendous opportunities for companies that can help realise its benefits. We are proud to be at the forefront of the mobile revolution, and our ability to unwire core business processes is set to go from

or require constant connectivity, the number of devices used could be much higher. This increase in multiple devices has put a strain on IT departments and their budgets as they work to secure, manage and support these devices.

“Our clients are struggling to deal with the reality of BYOD, employees working from remote locations, and using multiple devices to access the business network,” said Josh More, Senior Security Sonsultant, RJS Smart Security., which is a solutions provider for Sophos. With Sophos Enduser Protection, we can help make securing our customers’ mobile workforces easier and more affordable, giving us a distinct advantage over other resellers that offer security by device,” he added.

“Every day, I use three or four different devices for business purposes, and the consumerisation trend points to more people using even more devices,” said Matt Fairbanks CMO, Sophos. He added: “Our value proposition to customers and partners is complete security without complexity. And as BYOD moves more to the forefront of complete security, Sophos EndUser Protection allows more IT professionals to embrace BYOD rather than try to reverse it.”

strength to strength in the coming years, particularly in the MENA region.” In April 2012, SAP acquired

Syclo, a leading provider of enterprise mobile applications and technologies, adding industryleading expertise in building and selling mobile solutions in industries such as utilities, oil and gas, life sciences and manufacturing.

The move also accelerated the adoption and deployment of new mobile asset management and field service solutions on Sybase Unwired Platform, part of the SAP mobile platform and the company’s infrastructure for developing and managing mobile apps.

According technology analyst IDC, SAP Afaria (data protection using enterprise mobile device management from SAP) is currently number one in the mobile device management market with 20% share, while the Sybase Unwired Platform ranks second in the enterprise application platform market.

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Technology for business

INTEGRATED FIREWALL SECURITY Fortinet has announced the newest addition to its next-generation firewall appliance family (NGFW). The feature-rich FortiGate-3600C offers large enterprises and MSSPs an advanced network security appliance.

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he FortiGate-3600C runs FortiOS 5 and includes next-generation firewall capabilities that feature more control with network, user and device defined policy, integrated security with firewall, IPS, application control and VPN functionality with advanced behavior inspection for improved advanced threat detection, and enhanced performance for every customer environment.

or as an NGFW that includes firewall, IPS and application control. Additional applications such as virtual private network (VPN) or advanced threat detection, which uses behavioural-based detection in conjunction with a cloud-based reputation system that tracks botnets and elements of their threat life cycle, can easily be enabled and configured.

More network control

Enhanced performance

Firewall policies typically rely on basic information such as the “source” and “destination” addresses as well as port number to enforce policies. FortiOS 5 has significantly enhanced an organisation’s ability to enforce policies by incorporating both “user” and “source” identities as well. A user can be identified through various authentication methods, including single sign on. That individual’s computer or mobile device can be indentified in an agentless or agent-based manner. Armed with this information, the policy engine can make more granular security decisions based on user and device behavior.

Customers’ network environments, including data centres, campus environments, remote offices and small businesses are all under tremendous pressure to achieve seemingly incompatible requirements: increasing performance, while increasing security. Fortinet delivers on these two essential criteria with the use of purpose-built processor technology to achieve unmatched performance and protection, at outstanding price-points for every market segment. These purpose-built processors eliminate the performance bottleneck that other firewalls experience, allowing FortiGate devices to deliver award-winning threat detection while keeping up with high performance, high volume environments. Fortinet’s custom Content Processors provide ultra high-speed content inspection for IPS and antimalware, while

Integrated solutions

The 3600C can be deployed in a standalone security application mode such as a firewall

Symantec gets back to basics Symantec recently announced strategic plans to streamline and simplify its business to deliver significantly improved performance for customers and partners.

According to a recent company press release, Symantec’s goal will be to continue to improve on its existing product portfolio, while at the same time, develop new and innovative products and services that solve important unmet or underserved needs. Over time,

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customers will have more and better choices that will continue to meet their evolving needs and deliver better value. Symantec is focusing on ten key areas that combine existing products and services into new, innovative and comprehensive solutions that meet multiple customer needs with integrated and higher value offerings. The overall development process is estimated to take six to 24 months depending on the specific offering.

These future offerings are intended to align with meeting three key customer needs: making it simple to be productive and

the company’s Network Processors accelerate network tasks such as Firewall or VPN. Thanks to the appliance’s FortiASIC custom processors, the new FortiGate-3600C delivers up to 60 Gbps of firewall performance, 28 million concurrent sessions per second, 17 Gbps IPSec VPN and up to 14 Gbps intrusion prevention (IPS) to protect high volume enterprise environments from today’s advanced threats. In addition to its high performance, the FortiGate-3600C is highly scalable and features 12X 10 GbE ports, 16X GbE ports and 2X GbE copper management ports to give enterprise customers maximum deployment flexibility.

Adoption and use

As a next-generation firewall (NGFW) at the perimeter, the FortiGate-3600C can be deployed as an ultra-low latency firewall for enterprise networks, datacentres, campus and wireless networks. MSSPs or distributed enterprise networks have the option of deploying the FortiGate-3600C with more security services enabled as a unified threat management (UTM) device. The platform is fully integrated with Fortinet’s FortiManager and FortiAnalyzer, providing central policy and reporting.

protected at home and work; keeping businesses safe and compliant; and keeping business information and applications up and running. As such, Symantec is focusing on and considering the development of offerings in the following core areas: mobile workforce productivity, Norton Protection, Norton Cloud, information security services, identity and content-aware security gateway, data centre security, business continuity, integrated backup, cloudbased information management, and object storage platform.

“Customers will still be able to pick and choose the solutions they want to use, but from a broader menu of innovative products with higher value,” said Steve Bennett, President and CEO, Symantec.

“We’re not offering packages that they have to take it or leave it.

Customers can still decide what’s right for them and buy accordingly, but have the added option of migrating to new integrated offerings which provide added flexibility we know they will need to combat constantly evolving threats, particularly via mobile and the cloud.”

In order to continue delivering value to customers in the future, Symantec will increase its investment in research and development and home grown innovation to better meet next generation needs. Symantec will also establish strategic partnerships where it can integrate what it does with others to add even more value for customers.

This will help customers stay ahead of increasingly challenging information and protection challenges at the endpoint, network and data centre levels.

SIGN OFF

Testing the waters

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.

A Joumana Saad CPI Business

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s businesses look to harness the momentum at the start of the year, they will have to be selective in choosing the events they attend. In the the month of January alone, we have been inundated with invites to regional conferences, seminars and workshops, all focusing on the SME and entrepreneurial communities.

We have also observed a number of trends and initiatives arising in the SME segment, showcasing entrepreneurial spirit and a genuine enthusiasm for change.

Dubai Chamber of Commerce and Industry recently held a press briefing, which it highlighted in its 2012 annual report. Among the most important trends in the report ,was the rise in export growth among the Chamber’s members, many of them SMEs. According to the report, the value of member exports and re-exports in 2012 exceeded the pre-crisis level by 26%.

Another interesting trend was the shift in the top trading partners with Dubai Chamber members, as Iraq became the largest non-GCC export market to this group of companies.

During the event, HE Hamad Buamim expressed his expectation of continued export growth in 2013, as positive economic and investment factors from Saudi Arabia spill over to the UAE. As more SMEs in the region look to expand their reach, new research is showing a growing

SME ADVISOR Middle East

demand for flexible workspace and business support solutions. A new global survey by Regus finds that 50% of exporting firms say they’ve increased profits over the last 12 months, compared with just 38% of companies which only trade domestically. The survey also highlights the biggest challenges in the area of exporting for startups and SMEs, with 76% of firms stating that paperwork and property costs are the biggest obstacles to setting up a presence abroad.

I recently attended an impressive event in Dubai hosted by Booz & Company and the Chicago Booth UAE Alumni Club entitled Women Entrepreneurs in MENA: Successes, Challenges and Policies.

The conference brought together experts from around the MENA region, who shared their individual perspectives on progress and challenges in the areas of women employment and entrepreneurship.

During the event, I spoke with Mounira Jamjoum, Senior Research Specialist with Booz & Company,’s Ideation Center, who co-wrote the company’s Empowering the Third Billion report.

Although most of the MENA countries ranked at the bottom of the index, Mounira said there were some positive signs that could be seen in the areas of education and policy. She emphasised the importance of visibility in women leadership and its role in breaking

down cultural barriers and stereotypes. To read the feature article on this issue, please refer to page 38.

Over the next few months, we are planning a number of events for SME owners and managers looking to expand their knowledge, get expert advice and network. We will host a series of Success Series events across freezones in the UAE. To register or find out more details about the event, please visit: www. smeadvisor.com/successseries. SME Club Middle East be hosting a number of networking evenings in March and April 2013. You can find updates on all of our events at www.smeadvisor.com/smeevents.

Running from 17th to 19th February in Dubai, the 10th annual Middle East Trade Finance Conference will be held in Dubai.

Hosted by Exporta, the event is expecting to attract around 300 delegates, which include companies of all sizes, coming from a broad range sectors. Part of the agenda’s focus will be on the funding needs of financial institutions and how they expect to cope with financing the exponential growth expected in the coming years. Delegates will also be invited to attend a special ‘trade finance networking reception’ taking place on 18th February, allowing the opportunity for guests to build new contacts in an informal setting. For more information on this event please visit: www.tfweek.com

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