SME Advisor Middle East - March 2014 by SME Advisor Middle East

INSURANCE PARTNER

good advice for better business

Issue 99 MARCH 2014 strategic SME partner

BLUEPRINT Mastering trade finance trends

OH, KAY!

Kay Braganza and the classic SME experience

STARTER FOR 8 Incubation expertise from Turn8

Randa’s way Children’s issues: the amazing commitment of Randa El Hemeiri

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DIVIDE AND CONQUER The power of segmentation strategy

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EDITORIAL COMMITTEE

Welcome to our Editorial Committee SME Advisor is delighted to

announce that during 2014 we will be working with some of the leading names in the SME space - key figures who have kindly agreed to take part in our new Editorial Committee. This panel will play a vital role in channeling the feature content of our magazine and ensuring that we are more topical than ever analyzing and discussing the ‘real world’ issues of tangible value to our readership and bringing industry-leading expertise across the publication and its raft of prestigious related events. We are delighted to introduce the following SME personalities:

Alexandar Mathew Williams Alexandar Mathew Williams is presently the Director of Strategy and Policy at Dubai SME, a government agency of the Department of Economic Development (DED) tasked with the development of Entrepreneurship and Small & Medium Enterprises (SMEs) in Dubai. He has logged more than 20 years’ experience in public policy and strategic programme development focusing on micro-economic, business and SME development. Anas Halabi Anas is Managing Partner at Prediam Partners, an independent investment advisory firm, focused on real estate, hospitality and related ventures that he cofounded. Prediam has successfully assisted in setting up, structuring and financing numerous regional and international projects and startups, including an innovative application for Muslim travelers, an aggregator website for tourists in the UAE, an income producing hospitality portfolio in Dubai and a boutique hotel development in Beirut.

Mona Tavassoli With over a decade of work experience, Mona Tavassoli is the Founder of Mom Souq (www.momsouq.com), an online community and bazaar for mothers residing in the UAE, through which mothers can network with each other, share advice and their experiences. As an extension, with the aim of continually providing support to working mothers in this region, Mona launched a new platform - Mompreneurs Middle East (www.mompreneurs.me). Laudy Lahdo Laudy Lahdo is currently the General Manager of Servcorp, an Australianbased global provider of office solutions, in the Middle East region. She joined the company in 2003, after her move from Australia to the United Arab Emirates and as General Manager, has helped grow the company from just one office in Dubai’s Emirates Towers to 11 branches spread across the UAE, Bahrain, Qatar, Kuwait, Lebanon and Turkey. Servcorp provides both small and medium sized enterprises (SMEs), as well as multinationals, with the best locations, facilities, and technology and business support services in over 140 locations worldwide. Simon Hodges Simon has more than 30 years of experience working for international companies at Board level. He has spent over 10 years in the UAE and was previously Corporate Director of Administration of The Jumeirah Group, Senior Executive Officer of Dubai Holding Insurance Services LLC and Head of Governance for ADNEC. He also completed a two-year assignment as head of the health funding project for the Government of Dubai. Since 2011 he has been mentoring business owners from Dubai to enable them to create and then manage effective organisations that support business growth.

Hazel Jackson Hazel has built an impressive reputation and successful multimillion dollar business – biz-group FZ LLC- during the past 19 years based in Dubai. Nearly two decades ago, and with just US$700 in her pocket, Hazel founded biz-group, which she has developed from a small training company into an organisation of 42 professionals servicing the Middle East’s corporate training, team building and business strategy needs. Passionate about impacting performance, biz-group’s success is a testament to Hazel’s entrepreneurial spirit. Kay Braganza A seasoned public relations professional and successful entrepreneur, with five years of experience in the industry and an extremely commendable portfolio, Kay Braganza decided to pursue her love PR and start up her own agency four years ago. Here, she aims to cater to the demand of a flexible and a truly bespoke PR service, which strives to make a lasting difference to companies of all sizes. A recognized and respected expert in the PR world, her proficiency in the field speaks for itself, after working in it for nine years and having dealt with reputed clients such as Sony Gulf, Nokia, Mom Souq, and Clarion Events amongst many others. Nadine Halabi Nadine Halabi has been the Coordinator of the Dubai Business Women Council since August 2011. Since then, she has been managing the overall operations of the exclusive Council, coordinating the high profile board members, its stakeholders and members in line with the values, visions and missions as set out by its President, Mrs. Raja Al Gurg. Prior to her joining the DBWC, she worked at an events management and PR agency in Bahrain, where she flourished in a senior role as Deputy General Manager.

March 2014

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Emma Hughes emma.hughes@cpimediagroup.com +971 4 440 9120 Ibrahim Parwaz ibrahim.parwaz@cpimediagroup.com +971 4 440 9161 Event Sponsorship Manager

Gill Fairclough gill.fairclough@cpimediagroup.com +971 4 440 9148 Production & Design James P Tharian Database & Circulation Manager Rajeesh M Head of Design Glenn Roxas Designer Froilan A. Cosgafa IV Photographer Jay Colina Digital Services Manager

Tristan Troy Maagma

was recently fortunate enough to meet Malcolm Furber, the global President of the Chartered Institute of Management Accountants (CIMA). This is not only one of the largest certified professional bodies in the world, but is recognised as setting the highest-possible benchmarks in terms of financial skills and professional ethics. On the day of our meeting, CIMA had held a convocation event that was literally packed with more than 350 students and chartered management accountants. I asked Malcolm Furber what the up-take of CIMA qualifications was in this region, and whether the quest for chartered practitioner status was the preserve of accountants in large, enterprise-level businesses? Was the same quest shared by accountants in the SME sector? He replied that the GCC - and the UAE in particular - is actually one of the markets most enthusiastic about CIMA and what it stood for; and that there are a great many qualified members from the SME sector. Not only this, but they are especially keen to hear about the latest trends in accountancy and the impact of relatively new disciplines such as predictive analytics and integrated reporting. In short, the SME sector is full of people hungry to be at the leading edge of their discipline and aspire to the Best Practice benchmarks that their association represents. This, surely, is excellent news for SMEs - especially given the fact that the sector is most often criticized for its lack of correct financial reporting (classic examples being the staitistics that less than three per cent of SMEs publish their audited accounts and only 47 per cent actually produce professionally-audited accounts at all). There are indeed many beacons of best practice ‘out there’ and these provide a powerful counterbalance to the more traditional view that accounts in an SME can be a private and less formal activity. Certainly, this highly qualified lobby is likely to play more and more of a role in terms of influencing banks and other sources of finance about the viability of lending and investing in the SME space. One caveat, however: when CIMA recently polled its members as to their views on what constitutes the single greatest business risk, 76 per cent answered ‘lack of regulatory frameworks’. It is these frameworks, governing aspects such as reporting, audit and cash flow requirements that will eventually become more of a factor in the upward growth of regional SMEs; but for the time being, their relative absence means that businesses must increasingly rely on the presence of talented individuals with the highest aspirations at heart. Enjoy this issue of SME Advisor!

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Paul Godfrey Senior Editor

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March 2014

Issue 99

March 2014

CONTENTS

20 Randa’s way

Children’s issues: the amazing commitment of Randa El Hemeiri

EditorIAL COMMITTEE 03 SME personalities bringing industry-leading expertise across the publication and its raft of prestigious events. Editor’s note 05 Paul Godfrey on how the SME sector is full of people hungry to be leaders of their discipline. SHOPTALK 08 News and developments impacting SMEs in the region. Finance Focus 12 The latest financing opportunities for SMEs and allied financial services. SME ABOUT TOWN 16

Key events attended by SME owners and managers.

Movers & Shakers 20

My favourite word is challenge. We met with Randa Al Hemeiri – a fierce entrepreneur whose cross-cultural work is creating a buzz.

PR PRO: Kay Braganza. The young and determined entrepreneur shares her success story.

Business Innovation 30

Right on target. Mihai Rada of Etisalat explains the science of market segmentation and how it can empower your SME.

Workspace 32

Succession Planning and your family business. Legal expert Nita Maru on why you should be prepared today for all that can happen tomorrow.

Getting Finance 36 Blueprint – Trade Finance trends and the drivers of change. Doha Bank reviews current scenarios and presents a compelling survey of market data. 40

Turn up the volume (of your success!). Yousif Al Mutawa, Chief Information Officer, DP World, offers valuable insights on the intensive accelerator programme – Turn8.

‘Paying’ to your strengths. An online payment service can give you (and your customers) all the flexibility you need.

Customer Service 48 Stand out from the crowd – reaping the rewards of customer service leadership. World-renowned expert Ron Kaufman offers key strategies. Entrepreneurship 52 In focus: Entrepreneurship in Economic Development Forum. Victoria Connolly’s report of the high-profile thought-leadership event, held in Qatar. Managing Risk 54 No smoke without fire. Senior Editor Paul Godfrey highlights the right fire prevention measures to put in place.

Legal 58 Roadmap – understanding the new employment legislation in the GCC. Experts from Clyde & Co. present a detailed summary. Industry watch 62 Adopting corporate governance 63 The new Dubai Association Centre 64 Tecom’s Media Cluster flourishes 65 Deloitte’s millennial survey 66 Dubai Industrial City enjoys growth 67 In focus: construction sector 68 New entrepreneurial programme TECHNOLOGY FOR BUSINESS 70 IT trends and tools that are reshaping business in the region.

The next level… 72 BYOD – what’s in it for your SME?

March 2014

SHOPTALK

HE Hisham Al Shirawi with the staff participating in the training

Dubai Chamber’s training programme

ubai Chamber of Commerce and Industry launched a Leadership Development Programme, in collaboration with UK’s Cranfield School of Management.

The 12-month programme aims to improve organisational performance and delivery through the development of key employees in leading Dubai Chamber’s strategic objectives of creating a favourable business environment and promoting Dubai as an international business hub. In his inaugural address, His Excellency Hisham Al Shirawi, Second Vice Chairman, Dubai Chamber, stated that the extensive

training programme is designed carefully to cater to the developmental needs of the employees who will help drive the Chamber towards higher achievement. “I encourage all the participating employees to make the most of this opportunity and help Dubai Chamber’s mission of representing, supporting and protecting the interests of the business community in Dubai while increasing productivity, motivation, and performance to take

Achieving business excellence The Mohammed Bin Rashid Al Maktoum Business Award, an initiative by the Dubai Chamber of Commerce and Industry, has extended its scope and is now open to GCC businesses. After seven successful cycles of honouring exceptional institutional performance in the UAE, the Award now reaches out to GCC companies as a first step of its transformation into an international Award by the year 2020. His Excellency Hamad Buamim, President and CEO, Dubai Chamber, stated that the Mohammed Bin Rashid Al Maktoum Business Award has set a high level of business excellence in the UAE and for its next phase of growth and development is dedicated to cultivate world-class business culture in the region, with the ultimate goal of creating

a competitive business environment that fosters trade, business development, and job creation. His Excellency Buamim said that the Award has been gradually evolving since its inception in 2005 and is starting a new phase in its eighth cycle by supporting and encouraging institutional performance across the GCC region with the valuable contribution of the local chambers of commerce who will assist their

our organisation to the next level,” he said. HE Hamad Buamim, President and CEO, Dubai Chamber, stressed on the importance of the programme which he said will develop the skills of the employees and help in the implementation of the Chamber’s strategy of opening overseas representative offices and expanding into promising markets of the world while also promoting Dubai in the global business arena. The custom-made executive education programme will be delivered through two parallel streams with one focusing on developing the organisation’s executive leadership team and the other on developing its young future leaders. It involves a blend of practical real-life experience, business insights, academic theories, and personalised coaching to boost team work and team spirit among the staff and develop their abilities to communicate and collaborate effectively and to innovate proactively.

business communities in their journey to excellence and ultimately celebrate the success of the current cycle. The Award is organised annually under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai. Since its inception in 2005, the Award has assisted many companies meet international standards to achieve excellence. It helps participating organisations gain experience through self-analysis and align their management techniques with worldclass practices while also to benefit from other participants’ experiences in institutional performance. It also provides them with a detailed report on their overall performance including the organisation’s strengths and areas of improvement.

CMY

March 2014

SHOPTALK

Improved BRL strategy

Khulood Obaid, Senior Manager (VIP Section) at BRL

he Business Registration and Licensing (BRL) sector in the Department of Economic Development (DED), Dubai recently held a brainstorming session with a

group of businessmen as part of improving investor relations and service delivery. The meeting was part of the BRL strategy to gather customer feedback and promptly address their concerns. “The investor is our most important customer and our top priority is to ensure that our services enable them to operate in a competitive environment that guarantees optimum efficiencies. As part of our strategy, we have decided to continue such brainstorm meetings with investors every quarter,” said Saeed Al Marri, Deputy Chief Executive Officer of BRL. “Our focus is on being

a responsive government authority that works with customers. It will reinforce the message of public-private partnership that Dubai upholds and the Emirate’s vision of being the number one place to do business,” Al Marri added. During the session, investors expressed the major challenges they face with regard to licensing procedures and put forward various suggestions. One of the suggestions was to provide the full range of DED e-services through lawyers’ offices and extend the time granted for registering trade names after initial approvals from the 24 hours being given presently. Khulood Obaid, Senior Manager (VIP Section) at

DED’s Risk Management booklet The Department of Economic Development (DED) in Dubai launched a booklet on Risk Management which provides guidelines – based on scientific and practical methodology – to define, evaluate and manage risks. The guidelines follow a series of awareness workshops organised by DED’s Risk Management Administration in cooperation with Dubai Police to build employee awareness and skills in managing risks. The booklet, introduced by the Internal Audit sector in DED, aims to create awareness among employees of the various business units and agencies within DED on what contributes risks and ways of tackling them while working in co-ordination with the administrative units concerned. Mohammed Hilal Al Murooshdi, Chief Executive Officer of the Internal Audit sector, said: “The booklet reflects the vision and mission of the Risk

Awatif Al Mutawa, Internal Auditor in DED

Management Administration to avoid potential risks and enable employees to face threats according to specified procedures comprising brainstorming sessions, use of scenarios, common situation analysis and surveys.” Awatif Al Mutawa, Internal Auditor in DED, added that the booklet was prepared after six workshops held over two weeks to involve as many DED employees as possible. The three

BRL said that based on the investor feedback DED has decided to offer the e-services as demanded in three lawyers’ offices on a trial basis and allow three working days from initial approvals to register the trade name. DED will also look into setting up a hotline to respond to customer queries round the clock. “We are expanding our dialogue with investors by simplifying procedures and ensuring that businessmen seeking to manage their licenses get their rights along with convenience. BRL has progressively rolled channels like the web, service agencies, partner offices and mobile applications to enhance customer convenience,” added Khulood.

stages of efficient risk response, which are risk assessment, risk control and risk management, are explained in the booklet along with the importance of risk management to the organisation. “The risks are identified and evaluated in the first two stages and then they are confronted and followed up to ensure fastest possible return to the previous condition in case of any sudden interruption and maximum efficiency of DED’s resources. To ensure better response next time the risk assessment and management process is reviewed annually,” Al Mutawa said. “The Risk Management Administration looks at ways to bring about a risk management culture within DED and support the internal audit processes, eventually contributing to DED strategy and continuous work flow as well as to best quality services for clients,” added Al Mutawa.

Dubai wins two awards at ITB

ubai won two prestigious awards at the recent International Travel Bourse (ITB) event, the world’s biggest travel trade show held in Berlin from March 5 to 9, 2014. The awards demonstrated the Emirate’s high standing in the global travel industry. In the ITB Go Asia awards, Dubai was named as ‘Most Popular Destination in Arabia’ while the Germany office of Dubai’s Department of Tourism and Commerce Marketing was named as ‘Best Arabian Tourism Board in Germany’. DTCM’s Germany office is one of 20 within DTCM’s network of overseas offices. The first day of ITB saw Dubai represented by a 70-strong delegation of partners from the Emirate’s tourism industry and a contingent of DTCM

Members of the Dubai delegation collect the award for ‘Best Arabian Tourism Board in Germany’

senior management, including His Excellency Helal Saeed Al Marri, Director General, DTCM. The 3500 voters of the Go Asia awards were drawn from members

DSG supports ‘Smart Dubai Strategy’

His Excellency Ahmed Bin Humaidan, Director General of DSG

Dubai Smart Government (DSG) Department has affirmed its full readiness to comply with the Smart Dubai Strategy to convert Dubai

into the world’s smartest city. His Excellency Ahmed Bin Humaidan, Director General of DSG, said: “Dubai is witnessing the start of a new,

of Go Asia, a marketing alliance that brings together common tourists destinations in Asia with suppliers such as airlines, tour operators, hotels and tourists offices.

unique and unprecedented stage to enhance the quality of human life in all fields, thanks to a number of initiatives launched by our prudent leadership built on the infrastructure by our institutions and human resources to serve our citizens and residents.” He added: “His Highness Sheikh Mohammed’s launch of the strategy to transform Dubai into the world’s smartest city gives us a roadmap to reach this goal with services and utilities on smartphones and the entire city designed in a smart manner to understand and serve the needs of all.” Bin Humaidan clarified that DSG would be fully prepared to support this roadmap, thanks to its long experience in eTransformation including its advanced infrastructure, its unified and secure government information

network and platforms; and its government resources planning systems used by 43 Dubai government entities, its shared services, and its leading smart phone apps; all of which are enablers to make Dubai the smartest city in the world. Bin Humaidan pointed out that since HH Sheikh Mohammed announced the move towards smart government, DSG has already undertaken many practical steps to facilitate and expedite the smart transformation process. DSG has already completed four out of five smart transformation policies and guidelines for government entities. Bin Humaidan also emphasized that DSG is putting all its potentials and infrastructure at the disposal of government entities with the aim of making Dubai the smartest city in the world.

March 2014

FINANCE FOCUS

Dubai Design District attracts investor attention

ECOM Investments reported high levels of interest in the new Dubai Design District (d3). Since its launch by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, in June last year, d3 has received over 500 expressions of interest, outstripping expectations. As a result of its popularity, dozens of licences to operate under the d3 free zone are already either in process or approved. The d3 site, located just minutes from Dubai Mall, will boast a 1km

Deloitte’s report on global retail industry Deloitte recently released its Global Powers of Retail 2014 report that ranked the 250 largest retailers in the world, and portrayed the Middle East as a key market with vast retail industry growth opportunities. Following this, Antoine De Riedmatten, Deloitte’s global Industry Leader in Consumer Business, visited the UAE to meet with clients

waterfront twice the length of Jumeirah Beach Residences (JBR). This will feature international and niche hotels, a pop up shop area, and a convention centre. The property options on offer will include residential, commercial, retail and hospitality real estate, and the area will be characterised by distinct public spaces, unique street furniture, and shaded walkways. While construction at d3 progresses as planned, businesses and individuals can already apply for and secure their licence. They will be able to operate

and other major players in the sector. The Deloitte report ranked the UAEbased EMKE Group that operates the Lulu chain of hypermarkets as one of the top 250 largest retailers in the world. “It comes as no surprise that the 2014 Global Powers of Retailing report ranks the UAE-based EMKE Group, as one of the fastest growing retailers in the world over a five year period given the buoyancy of this market,” said De Riedmatten. “Last year, we saw many of the retailers, operating in developed economies where growth had slowed; seek

from one of TECOM’s other free zone locations until their particular space is ready for move-in. Dr. Amina Al Rustamani, Group CEO at TECOM Investments, commented: “I am delighted that d3 has attracted so much interest from the design community. We undertook extensive research and planning to ensure we create an environment that provides global brands better access to regional talent and the growing GCC markets, as well as being a platform to promote emerging Arab talent internationally. This strategy, coupled with TECOM’s track record in creating, operating and growing successful, industry-focused free zones in Dubai puts d3 in a strong position going forward. “TECOM’s pioneering and industryfocused business parks have helped play a key part in the development of Dubai’s knowledge economy and in increasing employment levels across the UAE. “Luxury brands like Hermes, apparel brands such as Nike, and educational institutions focused on the industry like ESMOD, are already doing business in TECOM’s other free zones, and the significant level of interest d3 has garnered shows others from the industry are keen to join them.”

growth opportunities in more buoyant emerging markets such as the Middle East.” “News of Dubai being chosen to host the 2020 World Expo will undoubtedly

provide an added boost to economic confidence in the region – not to mention an influx of visitors to boost retail sales,” he added during his visit to Dubai.

Dubai FDI report reveals key trends

ubai FDI, the foreign investment agency in the Department of Economic Development (DED), released summary reports on trends and opportunities across diverse sectors in Dubai. The reports included key sectors such as Logistics, Retail, Information Technology, Healthcare and Green Technology, and highlighted the prospects in each of these sectors in the backdrop of the ongoing economic development strategies adopted in the UAE and Dubai.

“As part of the UAE and as the hub of a region of vast economic potential, Dubai has moved to a new level where its approach to business and ambitions are attracting international attention. Dubai FDI focuses on enabling Dubai to capitalise on this global attention and attract businesses and investors to reap rich rewards by being in Dubai,” commented Fahad Al Gergawi, Chief Executive Officer of Dubai FDI. Key highlights from the report:

Retail sector: According to the report, retail sales in the UAE is estimated to grow by 32.9 per cent between 2012 and 2015, from AED 114 billion to AED 151 billion. Logistics: In terms of the logistics sector, Dubai is the world’s third-largest re-export

Fahad Al Gergawi, Chief Executive Officer of Dubai FDI

hub and the UAE logistics market is expected to reach AED 34.5 billion in 2014. Healthcare: Healthcare in Dubai is by far the best in the region and has also diversified into research and development, pharmaceutical production, equipment manufacturing as well as medical tourism, thus opening up for foreign investment and participation, says the report. The population in the Middle East is estimated

Al Tamimi & Co. launches new expert guide Al Tamimi & Company has produced an expert guide on ‘Doing Business in Dubai’ in conjunction with Jumeirah Group. The book, released at a buoyant time for the UAE economy, is aimed at supporting long-term investor confidence and business growth. As part of Al Tamimi’s wider ‘Doing Business’ series of books, this edition specifically addresses the most important questions that companies and individuals face when considering operations in Dubai, including appropriate business structures, activities and employment issues. Husam Hourani, Managing Partner at Al Tamimi, said: “This is an exciting time for Dubai and the UAE. Confidence has returned and

to cross 520 million by 2030 and the healthcare needs of the UAE alone is expected to reach nearly AED 30 billion by 2015, which demands substantial investment in facility development and management in addition to private sector expertise in specialised research, diagnostics, therapies, education and training.

the country’s economic prospects are encouraging. As a result, appetite for investment in the Emirates, from local and international investors, and from company executives is rising. To help them make decisions and

Green Technology: The emergence of sustainability as a priority in government strategy and the potential it has created for investment in clean technologies are detailed in the report on Green Technology. Dubai has pioneered renewable energy benchmarks in the region and has launched an Integrated Energy Strategy with a view to a 30 per cent reduction in carbon emissions by 2030.

enable long-term, sustainable growth and success, we have assembled this informative and valuable guide authored by our legal experts operating in this market.” Gerald Lawless, President and CEO of Jumeirah Group, added: “Dubai is a thriving business destination and its success has inspired people from all over the world to adopt it as their base. Universally recognised as business-friendly and stable, it has quality infrastructure, services and an abundance of talent, all of which reinforce its position as a commercial leader in the GCC. Understanding the unique dynamics of this remarkable city is key to ensuring a successful venture. This book will certainly help both the se asoned corporate executive and the budding entrepreneur navigate the surest path to business growth.”

March 2014

FINANCE FOCUS

Accounting and Auditing in the Islamic Economy

During the conference

he Fourth International Conference for Accounting, Auditing and Governance, held at the Armani Hotel in Dubai, featured an interesting discussion on the topic – Accounting & Auditing in the Islamic Economy & Banking. The two-day event was hosted under the auspices of the UAE’s Accountants

and Auditors Association in association with the Ministry of Economy. The Conference tackled the integration of international accounting and auditing standards under the realm of Islamic economy and highlighted the role of the Central Bank in the innovation and promotion of Islamic banking.

“The recent economic downturn had the global financial system badly shaken with widespread effects of an unprecedented scale, however, it was evident that Islamic finance demonstrated remarkable resilience,” said His Excellency Mohammed Bin Abdulaziz Al Shehhi, the Undersecretary of the Ministry of Economy. “The unprecedented growth and progress in Islamic banking and finance is mainly being driven by deficiencies in the current conventional systems that make people search for alternatives, the strong association of the Islamic financial movement and the sturdy moral orientation of Islamic finance,” Al Shehhi added. The Islamic finance industry is forecasted to continue to chart double digit growth rates across all sectors, with total industry assets estimated to reach approximately US$ 2.1 trillion

and the total asset of Islamic banking sector to reach US$ 1.6 trillion at the end of 2014. Overall, Islamic finance in 2014 is set to experience another increased momentum, particularly in the sukuk market due to thriving interests of key global and regional financial centres in developing Islamic finance, including London, Hong Kong, Singapore, Luxembourg, Malaysia and Indonesia. Keynote speakers at the conference included His Excellency Abdullah Salem Al Turifi, the Chief Executive Officer of Securities and Commodities Authority (SCA), Arif Ali from the Department of Finance, Abdulla Mohammed Al Awar, CEO, the Dubai Centre for Islamic Economic Development and Martin Turner, President of the Association of Chartered Certified Accountants (ACCA).

Understanding management accounting principles The Chartered Institute of Management Accountants (CIMA) and the American Institute of CPAs (AICPA) have proposed a comprehensive framework to bring consistency to management accounting practices around the world and to help organisations make smarter, faster decisions for the long-term amidst growing complexity and change. The draft framework is called Global Management Accounting Principles©: Driving better business through improved performance. Charles Tilley FCMA, CGMA, Chief Executive of CIMA, said: “Over the last few years, we’ve all seen how globalisation and the break-neck pace of technological progress are making change harder to predict and organisations more vulnerable.” “We may now be seeing encouraging signs in the global economy, but

we cannot afford to be complacent. We must learn the lessons of the last six years. To be confident of a successful future over the long-term, organisations must adopt a robust management accounting system that encompasses their financial reporting. This in turn will provide investors, customers and the general public with a greater confidence.” “Management accountants have the ability and judgement to make objective, ethical decisions that consider the public interest. But the quality of management accounting remains varied. Our principles will enable organisations to leverage both financial and, importantly, nonfinancial data. They will provide the forward-looking focus and link different parts of an organisation in a way that many still lack.”

The draft principles outline the values and qualities that represent best practice management accounting on a global scale. They include guidance on preparing relevant information, modelling value creation, communicating with impact and establishing the professional values of management accountants. The framework will include a diagnostic tool which will help businesses and institutions to ensure that they are making the most efficient use of key information. The consultation will reach across CIMA and the AICPA’s network of 177 countries. The two institutes joined forces to launch the Chartered Global Management Accountant (CGMA) designation in 2012 and are working together to highlight the importance of management accounting in today’s economic climate.

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March 2014

SME ABOUT TOWN

UAE’s oldest private business club

L - R: Sir Maurice Flannigan; Mark Harris & Guy Guillemard take a trip down memory lane at the World Trade Club 25th Anniversary

he World Trade Club (WTC), the UAE’s oldest private business club celebrated its 25th anniversary. First opened in 1989 by His Highness Sheikh Hamdan Bin Rashid Al Maktoum, the WTC has

continuously played a central role as a networking platform for professionals and business executives from across the region over the last two-and-a-half decades. Managed by DWTC, it operates under the World

Trade Centre Association, which boasts over 700 members across 55 nationalities. Aligned to DWTC’s aim of positioning the Emirate as the leading destination for business networking in the MENASA region, the WTC has long been a meeting place for the ‘who’s who’ of Dubai’s business, political and social circles. “Building relationships is in the very fabric of our business growth for the UAE,” said Mohammed Al Jumairi, Vice President – Hospitality, Dubai World Trade Centre. “For 25 years, the World Trade Club has provided executives the much-needed balance between business and leisure, allowing them to forge new relationships and, very often, lifelong friends.

Crossing such a remarkable milestone is a testament to World Trade Club’s capability to truly add value to business leaders around the region. We look forward to the next 25 years, where such connections continue to strengthen, benefitting a range of high-level industry leaders.” Over 700 members currently enjoy the benefits of WTC, spanning industries ranging from trading, to consulting, construction, engineering, contracting and many more. WTC facilities mirror those of 165 World Trade Clubs around the world, such as fine dining and regular industry-luncheons. Members in the region are also able to access all of the global World Trade Clubs as well as all exhibitions which take place in DWTC, compounding the level of networking opportunities.

Debbie Nicol leads Network Majlis Dubai Business Women Council’s latest Network Majlis event featured a three hour workshop led by Debbie Nicol, Managing Director and founder of ‘Business en Motion’ and creator of ‘Embers of the World’. The three hour workshop themed Introduction to the Leadership Challenge gave participants the beneficial advantage to gain perspective about the growth and change within themselves and their organisations, appreciate the simplicity of leadership and understand the alignment in a common language. More than 40 members from the DBWC attended the exclusive workshop during which they were given the opportunity to learn how organisations and individuals can perform to their peak potential. Raja Al Gurg, President of DBWC, said: “In the business world, we all face many challenges however it is crucial for a leader

During the session

to know how to make the best out of every obstacle. Women in business today should have the key skills that will enable them to succeed in challenging situations as it can aid in the growth of their business.” “The great turn out at today’s Network Majlis proved that there is an underlying

importance for women in business to learn more about leadership, associated skills and how to improve their ability to be a leader to lead their businesses and likely their own personal lives. We see many entrepreneurs attending these sessions as it also provides them a great networking environment with other members and a platform to obtain mentorship from established women in business which forms the core objectives of the DBWC,” concluded Al Gurg.

Womanity Foundation’s luncheon

The panel of speakers

he Swiss-based Womanity Foundation (www.womanity.org), an independent private organisation established in 2005 to help women shape their future and accelerate progress within their communities, hosted a luncheon in association with Dubai Business Women Council (DBWC). The session launched a debate around supporting women’s advancement and highlighted the key role that media can play in promoting this mandate. The discussion, themed ‘Worth 100 men: Identifying the role of media in women’s empowerment’, drew the

perspectives of prominent women from the UAE’s business world and media landscape. The participants included Khuloud Hasan Al Nuwais, Chief Sustainability Officer, Emirates Foundation; Nada Askar, Manager of Women Sports Department, Sharjah Ladies Club; Taghrid Alsaeed, Head of Digital Communications Group Communications, Mubadala; Salma Sakhnini, Entrepreneur and Managing Director; Cyba Audi, Principal, Saba Consultants; Linda Merieau, Founder, ABP Consulting Services; Mona Tavasooli, Founder, Mom Souq & Mompreneur Middle East; and Zareen,

inspiring women to be more active in society. Nadine Halabi, Coordinator, DBWC, said: Founder, Woman2Woman “Since 2002, the DBWC Business Council. has been enhancing Nivine Afiouni, Editor, positive change in the Skynewsarabia, moderated community, encouraging the event. the acceptance, awareness The event was attended by Yann Borgstedt, Founder and of, and potential to achieve for businesswomen. We President of the Womanity applaud organisations, and Foundation; Maysoun Odeh individuals that proactively Gangat, Managing Director of NISAA FM; Nadine Halabi, stand together to empower women. Therefore, we are Coordinator, Dubai Business proud to associate with the Women Council, and Badr Womanity Foundation to Jafar, Managing Director, further our mutual goals Crescent Group. of motivating women to The panelists urged become productive members women to achieve their of our society and economy personal and professional and unleash the unlimited commitments through potential to be found leveraging the strong female support networks worldwide, amongst the women living in the UAE. including in the Middle East, “We thank the media for and the opportunities to their continued support communicate and connect in raising awareness via the media. Education about the topic of women and skills up-grading were empowerment and we will identified as two key engines continue to implement that drive women to the innovative initiatives, like helm of success. The media Ro’Ya, to provide women with was acknowledged as a key a platform for their inspiring, vector for the exchange intellectual and noteworthy of important information, voices to be heard.” giving women a voice and

Sir Richard Branson in Dubai Virgin Founder and globally renowned entrepreneur, Sir Richard Branson, outlined to Gulf entrepreneurs and future business leaders the opportunity for investing in the UK at an event hosted by UK Trade & Investment (UKTI). Addressing the audience, Sir Richard shared his insight on starting new ventures, based on over forty years of being a successful investor and entrepreneur. Turning his attention to the UK and the opportunities for Gulf based investors, Sir Richard commented: “The UK is very attractive place for many people. It has a fantastic financial sector and a strong real estate market.

For UAE visitors to the UK, visa waivers are a good example of governments removing barriers to entry. “We lobbied the UK government three years ago to introduce loans for entrepreneurs, and I am delighted to say that they agreed to this, and as a result the UK is actively helping people with big ideas stand on their feet.” Edward Hobart, HM Consul General at the British Embassy Dubai, said: “Sir Richard Branson is a global icon of entrepreneurship and has created one of the best known brands in the world. With a track record spanning four decades, his endorsement of the UK as a global hub for investment

Sir Richard Branson at the event

should provide inspiration for Gulf investors to look to the UK for growth opportunities. UKTI can support companies and entrepreneurs from the region to assess market opportunities in the UK as well as working in partnership to identify the best channels for growth.”

March 2014

SME ABOUT TOWN

Ericsson ranks fourth on GPTW list

uring the Great Place to Work in the UAE 2014 ceremony, Ericsson was recognised as the fourth best place to work in the country. “Innovation within Ericsson goes beyond our technology and into our workplace, where we strive to create an atmosphere that inspires our people to achieve their full potential,” said Ray Hassan, Executive Vice President, and President of Global Customer Unit Zain at Ericsson. “A company is only as good as its people, and receiving accolades such as this one from Great Place to Work Institute, recognises

During the recent Great Place to Work in the UAE 2014 ceremony, Ericsson was recognised as the fourth best place to work in the country

and helps strengthen Ericsson’s appeal as an employer for top talent. We would like to thank our employees for their amazing support and dedication to the company, as they are the real reason we have been awarded this recognition for the second year in a row.” Commenting on this success, David Robert, Chief Executive Officer of Great Place to Work Gulf, said: “All of the top companies this

year demonstrate worldclass people practices that help foster a high degree of trust within the workplace and ultimately help the companies attract and retain the best talent, and efficiently drive toward organisational objectives. Ericsson’s keen focus on employee development and engagement are examples of such practices. We would like to congratulate this year’s top 15 companies that

have been recognised as great places to work in the UAE, and thank all of the companies that participated in this year’s assessment.” The selection process saw the Great Place to Work Institute conduct an evaluation of each participating company, with two-thirds of the company’s score based on a survey sent to the employees in each company. Questions asked in the survey are related to employees’ attitudes about the management’s credibility, employee engagement and job satisfaction, with all responses kept anonymous to ensure that employees aren’t pressured to provide positive answers. The remaining third of the scoring is based on a second survey that is designed to assess each company’s pay and benefits programme, hiring processes, internal communications and talent development.

ACCA highlights IR practices

During the event

The Association of Chartered Certified Accountants (ACCA) recently held a Forum, in partnership with Pearl initiative, to discuss Integrated Reporting (IR). The event highlighted the challenges and

opportunities relating to the adoption of this practice in the region. New research by the ACCA reported that 40 per cent of finance professionals were actively taking steps to introduce IR policies in the next few years, while 60 per cent had yet to do so due to the complexity of changing accounting systems. Findings from a previous ACCA report also demonstrated appetite from the investor community to adopt IR practices.

Helen Brand OBE, Chief Executive, ACCA, commented: “The journey towards Integrated Reporting aims to give a full picture of a company’s comprehensive business performance – integrating financial and nonfinancial factors. Co-ordinated thinking is important given the speed at which business moves these days. What our research shows is that there is an element of seeing who pulls the IR trigger first amongst the finance professional community, but those who do will be ahead of the game.” The Forum was part of the ACCA Council’s biennial international meeting with senior delegations visiting the region to better understand how the accountancy profession is supporting growing economies in the Middle East and South Asia (MESA).

Dubai Exports Seminar

During the event

ubai Exports, the export promotion agency of the Department of Economic Development (DED) – Government of Dubai, hosted a networking seminar in partnership with the Trade and Export

Middle East magazine to highlight business and investment opportunities across Central Asia. The ‘Trade & Investment Central Asia’ seminar brought together diplomats as well as experts in doing business and evaluating

prospects across varied industry sectors in Central Asian countries, chiefly Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan. Speakers at the seminar led the audience through the investment landscape of Central Asia and highlighted economic strategies of the individual countries. Major exports to Central Asia and the strategic advantages that the UAE has in reaching out to this promising region were also discussed. Engineer Saed Al Awadi, Chief Executive Officer of Dubai Exports, remarked in his opening address that businesses in the UAE can be a major presence in Central Asia, supplying to various sectors from oil and gas extraction to food processing and packaging.

“The Central Asian region has a healthy appetite for imported goods and in some cases is willing to pay more for quality, innovative technology and service. The services sector especially has strong prospects in the increasingly diversifying Central Asian economies,” Al Awadi said, adding that Dubai is best-placed to be a major exporter and reexporter to Central Asia. Dubai Exports seek to build export awareness among local companies and encourage them to start exporting and consider expanding to new markets. The agency has an innovative portfolio of services to meet the growing demands and challenges of the business community, including in building capacity and competitiveness.

Servcorp’s third location in Dubai Servcorp, the premium office solutions provider, celebrated the grand opening of its third location in Dubai – located in the exclusive Boulevard Plaza 2. The gala event was hosted by Servcorp’s CEO Alf Moufarrige and General Manager in the Middle East, Laudy Lahdo. Servcorp were honoured with the presence of Mohammed Abdulla Shael AlSaadi, CEO of Business Registration & Licensing Department of Economic Development in Dubai as the guest of honour. The event attracted a vibrant mix of local business identities and key government dignitaries including special guests Bruce Corlett, Global Chairman of Servcorp; Rick Holliday-Smith, Chairman of the Australian Stock Exchange; and HE Pablo Kang Australia’s Ambassador in the UAE and Qatar. Servcorp’s latest serviced offices, in the Boulevard Plaza Tower 2, offer complete business support, excellent facilities and

Ribbon Cutting with Mohammed Abdulla Shael AlSaadi, CEO of Business Registration & Licensing Department of Economic Development; HE Pablo Kang, Australia’s Ambassador in the UAE and Qatar; and Bruce Corlett, Global Chairman of Servcorp

spectacular views of Burj Khalifa and the Dubai fountain. The Boulevard Plaza features special facilities including 24 hour security, a spacious auditorium, ample parking for visitors and prayer rooms. This location also offers easy access to the Dubai metro via an air conditioned bridge that links directly to the legendary Dubai Mall, the world’s most-visited shopping and leisure destination. Laudy Lahdo, General Manager – Middle East commented “We are very

proud to present Servcorp’s third location in Dubai. The Boulevard Plaza provides our clients with the opportunity to position themselves in one of Dubai’s most prestigious business locations with access to the best facilities, technologies and support teams at the lowest possible cost. Confidence in the Dubai market continues to grow and demand for office space has been increasing. Statistics in this market continue to highlight the “flight to quality” trend, with a number of companies relocating from older buildings and secondary locations towards prime areas and higher quality buildings. We see this day to day with potential clients seeking A-grade buildings in established prime locations. Servcorp offices are fully compliant with the Dubai Economic Department’s regulations governing business centres allowing a hassle free licensing process.”

March 2014

MOVERS AND SHAKERS

Randa El Hemeiri

My favourite word is

challenge How can you define the work and lifestyle of an Emirati woman dedicated to the early education of the diverse socio-cultural background of the children in the UAE? A woman who co-founded Petit Bout’Chou, a unique nursery in Dubai shares her story. SME Advisor spoke to Randa El Hemeiri, and aimed to understand the path, career and motivations of a woman whose cross-cultural work is creating a buzz.

he UAE is increasingly leading the region in its commitment to encouraging women to become entrepreneurs, with a growing number of courses, seminars and diploma programmes and an ever-stronger involvement from powerful figures such as HE Raja Al Gurg, Dr. Amina Rustamani and Sarah Belhasa. Statistics from the UAE Academy in fact show that more girls than boys are currently attending business programmes as part of their secondary education, and that at tertiary level, 53 per cent of EMBA students resident in the UAE are women. Her selection and training with Dubai Chamber of Commerce and Industry’s innovative initiative of Tejar Dubai, the entrepreneur development programme that covers all entrepreneurial needs right from an embryonic idea to its implementation, has helped her hone her entrepreneurial talent. It’s partly from this commitment to study and achievement that Randa El Hemeiri was able to dream ever-bigger dreams - and it was no surprise that her

earliest aspirations revolved around her wanting a career as an international diplomat attached to the United Nations. So, what happened? “Well”, says Randa, “While my father was all in favour of my education, he didn’t like the idea of my getting involved in too much international travel. So I had to focus on developing a career closer to home. Like many Emiratis, my first experiences of work were in the public sector, but I then held a series of challenging positions in private companies - SMEs. This is where I really learnt how to survive. I learnt what I call my ‘code for life’. Also, my recent training with Tejar Dubai which is dedicated to provide a tailored individual learning experience to selected aspirant entrepreneurs armed me with the knowledge and skills necessary to ensure the success of my innovative ideas and creativity as I got the opportunity to polish my business skills from the judging panel comprising of seasoned business leaders of Dubai.”

March 2014

MOVERS AND SHAKERS

Following ‘the pioneer women’

Was she inspired by Dubai’s commitment to entrepreneurship, and by the examples of leading women committed to empowering women’s entry into the workplace? “There’s no doubt”, Randa continues, “that women’s entrepreneurship is a big issue here and that Dubai itself - such a cosmopolitan, fast-moving place - is built on an exceptional entrepreneurial spirit. In fact, it’s the natural home of entrepreneurship in the region. I’m an incredible supporter of Dubai, and I’m fiercely protective of it. In terms of the women who are supporting female entrepreneurship and the role of women’s empowerment, I call them ‘pioneer’ women - and I’m incredibly fascinated by them. “Also, I’m the first to say that while we’re of course used to seeing Emirati women working in the public sector, they are still a relatively rare sight in SMEs and the private sector. This needs to change - and fast. Emiratis, and Emirati women, should be moving in their thousands into the private sector. I can say that this idea was inculcated in me during my training with Tejar Dubai.” Was there a particular catalyst that made her decide to become an entrepreneur? “As an Emirati, I feel a lot of pressure to carry forward the vision that baba Zayed has set for us, and I must admit, he set the bar high! When I struggle with doubt or fear with regards to driving the business, I go back to the roots and listen to Sheikh Zayed’s speeches on You Tube, his wisdom manages to spark the motivation and stamina to move forward. Another key influence was my mother - or perhaps I should say my mother’s love of gardening. She would spend hours and hours cultivating the seeds that she planted and nurtured them to grow into magnificent plants. I learnt that the plants won’t grow today, but they will grow tomorrow - and you have to have patience, commitment and faith. While I chuckled my head and laughed as a child, these values have become more important as I became a mother and an entrepreneur. Truthfully, today they’ve become the basis of what I call the ‘four pillars’ I live by. These are • Belief • Faith • Wisdom • Prayer

Randa El Hemeiri

“These give me the patience, trust and endurance that I need - and it was only because of my commitment to them that I was able to turn the early days of my investment in the nursery into the success that it is today.” Petit Bout’Chout – challenges and wishes

“You could say”, explains Randa, “that my favourite word is challenge. But in the very early days, I really wondered if I had taken on a challenge that was simply too great. You see, I found the perfect location for the nursery, in a beautiful villa which we then fitted with all the right amenities. The only problem was the rent of the villa that amounted to hundreds of thousands, with only a handful of students attending, I will never forget that day, the nursery was so empty, that there was an echo of the kids voices, and my bones shacking. However, I really dug in, persevered - and today, the only echo you hear is early in the morning as we open the doors of our 9 fully occupied classes. One of the reasons we were able to turn things around, is because we truly believe in the uniqueness of each child who can bloom in an environment rich in experience and exploration to stimulate his full potential. Motor skills are crucial building blocks for the early development of both children’s motor skills which provides the link between early school achievement and social, emotional, and moral development, as well as social capabilities (based on Harvard University Studies with regards to early childhood education) for these reasons we take care of the child’s learning and development from all these angles: • Cognitive • Emotional • Social • Academic • Sport • Arts and crafts • Family oriented approach “Fortunately, word spread that we had such a rigorous and committed approach, and one by one, new parents contacted us. Now, we don’t have to do any marketing at all - parents come to us purely by word of mouth recommendations. “I always find it impossible to ignore the larger picture, and I consider the child’s life when he or she is away from the nursery, too. So I need to make sure that the child is safe at home and being

treated properly there. The nursery will also admit children with developmental delays - we have specialist staff trained to tackle these situations and give the child positive care and therapy at an early age. We’re also completely aligned with the wide range of legislation and government regulations affecting nurseries - an aspect that parents like very much, because it assures them their child is safe. “I started the nursery because I thought: “I have to do something; I have to help children - I really can protect some kids from the harm they might be encountering. I started believing in myself and this really made a tremendous difference.” But why did Randa start a nursery with a French curriculum? “Because I wanted to do something different. Generally,

I have to say my pupils are from every background you can imagine: they are Emirati, European, from the Levant, MENA - you name it! As you can see, we’re open to everyone, from every culture. everyone follows the English curriculum, but for many Arabic countries there is a legacy of French language and culture, and I knew many parents who wanted their youngsters brought up in this tradition - but there was hardly anywhere to go. The nursery fills that niche, although I have to say my pupils are from every background you can imagine: they are Emirati, European, from the Levant, MENA - you name it! As you can see, we’re open to everyone, from every culture. “For all children, I believe in what I call ‘directed play’; it’s not an incredibly strict environment - children can really have fun here, of course - but it’s all within the context of learning very specific skills.”

much part of a team effort. “I have two wonderful business partners that enabled the creation of a solid team. We form a family at the workplace that supports the management team, the teachers, the children and their parents. It has been six years since we started working together; currently I know that I’ve got a firm platform on which I can carry my dreams further. It’s this platform that means I’m now ready for the next step - which in my case means opening a terrific new early childhood educational centre that is simply bigger and better, with a superb new location; we called it Potentiel. It will cater for three languages (Arabic, French and English) and it’s absolutely tailormade for the completely cosmopolitan life here in the UAE. The really great news is that it should open by mid this year! “Again, this environment will also cater for children with different learning preferences. I’ve employed the best and most specialist staff, quite literally from around the world. I believe in putting the mix of the right individuals into bringing up a child, and meeting that child’s very personal needs, whatever they may be. We refuse to call it, learning difficulties, as we do not perceive it as so, each child has a learning style, and we will cater for each style accordingly”. Again, my association with Tejar Dubai instilled competitive behaviour in me as it allowed me to build relationships and develop a full business plan. I really got to hone my talent under the expert committee comprising of successful entrepreneurs and CEOs. If it wasn’t for Tejar Dubai, it would have been very difficult for me to think about this creative plan of starting my second enterprise, informed Randa. Is there a life for Randa outside of work? “Well, I love cooking - and believe it or not, I used to be a swimming champion. I actually have three gold medals! But now, most of my energy goes into working with the kids and keeping up with all the right techniques and skills to help them grow and thrive. I’m the first to admit that I put a lot of emotional energy into that - and I want people to feel the love that I put into creating a nursery environment that really does offer something very special for every child.”

Next steps…

For an online version, please visit:

Despite her single-mindedness and insights, Randa admits her success is very

www.smeadvisor.com/2014/04/myfavourite-word-is-challenge/

March 2014

MOVERS AND SHAKERS

PR PRO:

Kay Braganza

Living the life of an SME owner is no walk in the park. But, when SME Advisor met the young and determined Kay Braganza, we discovered that hard work combined with a strong desire to follow your dreams can make the journey to the top seem all too easy. The Founder and Managing Partner of The Public Relations Company (TPRC) tells us how she did it all…

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffet What was your inspiration behind the idea? How did it come about?

business, and with the power of PR, you can ensure that you are playing to your strengths. I personally feel that the discipline of PR has evolved over time to become a necessity for businesses, and I truly enjoy supporting companies as they look to integrate PR into their marketing toolkit.”

“I always had the passion and desire to become an entrepreneur and run my own business; this, Were there any initial hurdles? combined with the extensive experience I had within “Of course! When I started out I was faced with the PR industry, gave me the confidence to start my challenges such as building a client network, creating a PR agency. niche for my brand in the market, and communicating “My vision was to create something of value to small to clients what TPRC was all about. The biggest hurdle businesses that were looking for bespoke services of all, however, was starting off as a single owner! It catering to their unique needs. That’s what inspired meant I had to multitask and juggle several different me to start a boutique PR agency offering personalised responsibilities; it required having a 360 degree services to a small, yet diverse, group of clients.” understanding of managing a business.” What makes PR so important today? What attracted you to this field?

How did you manage to build a client network?

“At the outset, I had only one client. However, as my “PR is a vital communication tool for all businesses company took shape, my client base began to extend. – it’s a great way to promote your brand in a simple, I realised I didn’t even need to advertise! My clients effective, and credible manner. For instance, as an started recommending and referring me within their SME owner, would you rather spend a couple of networks. Business started pouring in, purely on the thousand dollars to secure a prime ad position in basis of ‘word-of-mouth’.” a leading publication or benefit from a three-page editorial at no cost? Explain a day in your life as a PR professional. “Moreover, in today’s competitive market, reputation “There’s often a perception that PR professionals can be either the greatest asset or weakness of a spend most of their time sending out press releases

PR is a vital communication tool for all businesses â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s a great way to promote your brand in a simple, effective, and credible manner.

Kay Braganza, Founder and Managing Partner, The Public Relations Company

March 2014

MOVERS AND SHAKERS

How do you identify potential clients? Do you have a certain preference or are you flexible with your clientele – in terms of who you work with?

or trying to get media representatives to an event. This, however, isn’t true; a lot more goes into being a top PR professional today. For instance, my day involves a lot of interaction with my clients, understanding what they do; I prefer to use a very ‘hands-on’ approach and sometimes even work out of their offices. I also spend a significant amount of time handling crisis communication, scheduling interviews, and so on.” Why do think SMEs, in particular, need PR?

“SMEs are constantly competing with larger businesses to make their presence known amongst key clients. PR can help an SME raise its company profile, elevate reputation, and build connections with the right people. All these elements play a major role in the success or failure of a small business.” What, according to you, are critical drawbacks in an SME’s PR strategy?

“As an SME owner myself, I’ve realised that a lot of SMEs forget to understand the significant role of PR in their business model. Even if they do engage in PR activities, they aren’t very consistent with it. So, you might see a PR announcement or two in a couple of months but the rest of the year, they are pretty much quiet. With customers today, it’s very

PR can help an SME raise its company profile, elevate reputation, and build connections with the right people. much a case of ‘out of sight, out of mind’ making it imperative for businesses to connect with their customers on an ongoing basis.” What are some tips that can help SMEs do it in the right way?

“SMEs need to be constantly aware of the conversations taking place about their company – both online and offline. You need to know what your customers – and other stakeholders – are saying about your business. I encourage SMEs to participate in these dialogues and actively contribute to these discussions. “Additionally, companies should know how to measure the results of their PR activities. Essentially, you should be asking yourself, “Do I have the metrics I need to measure the effectiveness of this PR campaign?” and if the answer is no, then you probably aren’t ready to hire a PR agency yet.”

“This is definitely a critical question – not just from a PR agency’s perspective, but from the company’s perspective as well. Being passionate about your client’s offering and understanding their business values is very important at the time of establishing a new relationship. “At the same time, the company needs to connect with us too; this is a significant factor that SMEs need to consider when selecting a PR agency. Failure to do so can lead to serious problems and loss of value down the line. Remember, your PR agency is like an extended part of your company itself, so it’s crucial for them to understand your business and its cultural values. Hiring a PR agency is liking hiring someone internally. The process is exactly the same. “In case you do have an internal PR team, ensure that your PR agency is able to communicate and get along well with your internal team. More importantly, is there a clear divide between what they are expected to do?” Do you have a specialist approach to PR, i.e. are you press-coverage led, or do you take a multi-media view?

“It is a known fact that digital marketing has changed the way companies look at PR. We do provide social media marketing as part of our services, including tools such as Twitter, Facebook, YouTube, etc. Using these new channels helps us ensure that our clients are able to reach their audiences faster and more effectively. We also offer other services specific to the needs of each client.” What is your vision for the future? Where would you like to see your company five years from now?

“We want to continue expanding across different industry verticals such as banking and finance, for example. Introducing new team members is also on the agenda. Finally, we would also like to tap into international markets such as Ghana, Senegal, Canada, and India in the near future.” For an online version, please visit:

www.smeadvisor.com/2014/04/pr-prokay-braganza/

March 2014

Business innovation

Right on target It’s a core marketing fundamental that a business should identify not only who its customers are, but what those customers actually want to buy. Since customer needs will vary with income and expectations, it makes practical sense to tailor a marketing strategy for different customer groups - ensuring that your approach is consistently right on target. This is the science of ‘market segmentation’, and here, we explain the basics of how it works, and how your business can reap powerful and lasting benefits. We also asked expert practitioner Mihai Rada, Director, SMB Development, Etisalat, to highlight the segmentation strategies that the telecoms market leader is using to help businesses reap the powerful rewards of full mobility and digitization…

n December 2013, two completely independent repor ts were published in the GCC about current trends and changes in the SME sector. In the first, Qatar Development Bank assessed the role of business education amongst a pool of more than 15,000 SMEs, and found that less than three per cent of respondents employed a marketing team with any advanced marketing or communications credentials. Meanwhile, the Dubai government think-tank and SME champion, Dubai SME, published a powerful report on the evolving status of the SME sector - and found that less than 16 per cent of CEOs and MDs made business qualifications a core part of the recruitment agenda. These findings suggest that when it comes to understanding the technicalities of business strategy and marketing, there is very little take-up of the approaches that have been widely benchmarked and developed to help precisely the type of growing, aspirational businesses we see in the SME sector. This sector is typically the most competitive, because businesses often have to offer services which – • Compete on price • Have relatively little customer loyalty

• Are geographically diverse, with little or no Post Code/Zip Code identification • Are ethnically diverse, with widely varying buying patterns and little understanding of respective purchase triggers This environment represents a ‘classic’ marketing conundrum - and it’s precisely in response to these challenges that the discipline of Market Segmentation has evolved. As Mihai Rada, Director, SMB Development, Etisalat, comments: “The SME sector is a very dynamic one, and it’s where you will reap the best rewards for the right marketing initiatives. Life is very fast-moving here, and you’re often dealing with solo decision-makers who can advance things really rapidly. This contrasts with the Enterprise sector, where there are more complicated structures and decision-making channels in place. Whereas an SME can double its business overnight.” Not a ‘needle in a haystack’, but common needs, common priorities

Imagine if the broad, apparently heterogamous prospect group described above could be broken into manageably-

sized groups with common needs and priorities so that in each case, a defined marketing mix and strategy could be applied. Imagine if there was a clear pool of research that enabled your SME to identify factors such as – • Age and nationality • Existing buying habits for the products and services you sell • Location If your SME is a B2B specialist, you could then add criteria such as – • Size of business - whether in terms of turnover or personnel • Industry in which it operates • Presence (or not) of the products you want to sell Knowledge about these factors not only enables more effective selling of the existing product lines, but can lead to R&D processes geared specifically to established customer needs and preferences - the essence of proactive marketing. In order for the segmentation to be meaningful, it has to answer certain key business challenges. For example • It has to be aligned to the overall business objectives. The very first question one

Market segmentation can be used to establish where the critical flaws and opportunities in your business exist.

Mihai Rada, Director, SMB Development, Etisalat

March 2014

Business innovation

•

• •

•

needs to ask before embarking on any segmentation project is ‘what are the benefits that the segmentation should deliver?’ For example, do we need to drive sales, increase customer loyalty or improve product penetration? What do we know - and more importantly, what do we not know - about our customers? Do we have enough data (internally) to predict customer behaviours? Can we get external information (how and how much does it cost?) to enhance the internal segmentation model? How often does the customer behaviour change and how do we capture this change into our model?

A correct answer to the above questions, and others, ensures that your internal segmentation model is properly built to deliver the expected business benefits. As Mihai Rada comments: “A good market (customer) segmentation ensures that you properly understand your customers and their needs and can build your sales strategies around those needs. The key,

The key is to ensure that like-minded customers are positioned in the same segment, so that your sales and marketing efforts are consistently relevant and workable across all the prospects in that group. though, is to ensure that like-minded customers are positioned in the same segment, so that your sales and marketing efforts are consistently relevant and workable across all the prospects in that group. We can say, for example, that if the right factors are aligned, the customer is at least likely to buy into the same products.

“Meanwhile, if I’m an SME owner or director, the benefit for me is that the company that properly segments its market can develop a product specially for my business, which really meets my needs. It can be perfectly-designed and perfectly-priced. Keeping the customer – and adding commercial value

Market segmentation can also be used to establish where the critical flaws and opportunities in your business exist. So, you can identify which customers are your top spenders and where is your cross-sell and up-sell potential. Linked to this, Mihai adds that: “When you have established the correct segmentation model, you can unleash customer value by analyzing your average spender per product against top spenders. Then you can not only build your cross-sell and up-sell strategies, but also product penetration strategies to ensure you capture most of the customer spending. “Together, these create the financial and P&L matrix that will influence your budgets for product development and marketing.

So, as you can see, market segmentation customers are ready to buy into additional is a powerful tool towards achieving your areas of the product range and knowing marketing objectives - but it’s not an end ‘where to start’ when launching a fresh sales in itself. Segmentation ensures that what initiative - avoiding duplication of effort you’re doing is relevant and rooted in and ensuring that the customer gets the reality.” product opportunities that are genuinely Another immensely valuable set of most appropriate. data that market segmentation delivers is the knowledge of pricing ‘thresholds’ in Pleasing the customer different markets - eg, ‘how much is too One of the powerful benefits of much’? This is true not only in relation to segmentation strategy is that it can open the same product, but in terms of adding the door to customer initiatives that extra - or ‘luxury’ - features which increase really set your business apart from the the perceived value at relatively little extra competition. Mihai Rada remarks that: cost. The car industry is a classic example “One of the goals of segmentation is to offer here - for instance, it’s vitally important the right service, to the right customer, at to know which customers will buy a the right price. This can result in levels of Chevrolet, and which will buy a Cadillac. service and tailor-made products that the Why? Because the actual difference in customer is truly delighted with - it’s a manufacturing cost is a fraction of the means for achieving excellent, outstanding difference in retail price that the Cadillac customer satisfaction. One of the real can command. It’s much harder to unleash values of this is that in markets that are this fresh level of commercial opportunity dominated by a kind of ‘price war’, the without good market segmentation company that really uses segmentation strategies. wisely won’t have to keep endangering its Moreover, market segmentation is margins, because it not only appeals to extremely useful for identifying which the customer in a whole variety of ways,

but finds the customer who is right for its pricing strategy. “Remember, if you fail to understand your customer, you fail to run your business. For us here at Etisalat, for example, it’s important to follow up our segmentation strategy with regular customer feedback and market updates: we conduct ongoing customer profiling and run a mixture of monthly and quarterly customer satisfaction surveys and market research initiatives. This level of proximity to the customer is only possible because we understand the role of customer segmentation - and one of the most attractive aspects of segmentation as a discipline is that it can be rolled out across many different industry sectors. So it’s very likely that it can play a powerful role for your business too, and help you leverage important strategies for growth and customer acquisition.” For an online version, please visit:

www.smeadvisor.com/2014/04/right-ontarget/

March 2014

Workspace

Succession Planning and your family business If you own or partially own a business or a professional practice in the UAE, it is important that your estate and succession planning begins today. Nita Maru, a British qualified solicitor and Managing Partner of TWS Legal Consultants, explains further…

n my line of business, I am often found quoting the words of American author and academician John M. Richardson, Jr. marked by innate simplicity, it is as simple to practice as it is to preach: “When it comes to the future, there are three kinds of people: those who let it happen, those who make it happen, and those who wonder what happened.” If you have spent years making money and managing it wisely, it is logical that you must plan for its future and ensure that your wealth, assets and business, are passed on to your family, or to the inheritors of your choice.

As a business owner, it’s quite likely that a significant portion of your wealth - and your family’s source of income after your death - is intrinsically connected to the family business. The success of your estate plan is dependent upon the business being transitioned to the next generation or sold to someone outside the family for a fair price. Both results require planning and preparation. Business succession planning should be a priority for every owner of a private business. Ask yourself these few questions: • What would happen to your business if death or serious disability should suddenly happen to you or a co-owner or a key employee?

Business succession planning should be a priority for every owner of a private business.

• • • •

Who would run the business? Would revenues decrease? Would clients take their business elsewhere? Do you think your business could survive?

Without adequate planning, your business may be negatively impacted or forced to close in a relatively short period of time. Why? Not because you did something wrong, but because you did nothing. Consider this: less than 30 per cent of family owned businesses survive to the second generation and less than 12 per cent to the third generation. And there’s only a three per cent survival rate to the fourth generation. Have you wondered why? There are two common reasons why a family does not retain their business. The first reason is straightforward - there is no qualified successor. However, even though these businesses will not be passed down to the next generation, you can still take steps to ensure that the value of your business survives. The second major reason for unsuccessful business transitions is more unfortunate. In many cases, businesses fail or are sold off due to a lack of planning. Although most of us are careful to safeguard our personal assets, for example by insuring our homes,

many business people do not plan ahead to safeguard the value of their business. At first glance, this lack of planning seems incomprehensible. But when you look at the personal and family issues that are involved, it is easier to understand why many people put off dealing with the issue of business succession. Running a business is not easy. In fact, it’s hard work. The daily work needed to make a business successful leaves little or no time to plan for the ownership and management changes that will inevitably occur. None of us likes to think about or discuss our own mortality, but the process of succession planning, like good financial or estate planning, is all about what will happen after we are retired or gone for good. The longer owners wait to design and implement a succession plan, the greater the risk that the plan will not meet their goals. The risks also increase in that the business will fail along with the health of the owner. When a business owner does not implement a succession plan before he or she is disabled or dies, the value of the business often drops rapidly. This may sound harsh, but In fact, it is not uncommon that both the business and the business owner die on the same day. This means that the owner’s intended beneficiaries will not receive the full value of the business. Planning

March 2014

Workspace

Nita Maru

five years in advance is good. Planning ten years ahead is even better. For business owners living in Dubai, or in most places in the Middle East, there is a pressing reason to consider business succession planning. Under Sharia law, company shares do not pass automatically by survivorship and have to be probated in the case of a shareholder’s death. This often results in lengthy processes that affect the performance and profitability of the company. It also gets compounded when the company has more than one key shareholder, or upon the death of a husband and wife who are joint shareholders. Sharia prescribes to a set method of distributing a person’s wealth after death, and this is based on Islamic principles which are biased towards the men in the family. This may appear risk-free or even pleasing in theory. However, its implications and implementation may not prove very practical. For instance, a wife who has children qualifies for only one eighth of the entire estate, and this distribution is automatically applied. Unpaid bills, debts and mortgages do not automatically die with the death of a person. All assets, including bank accounts of the deceased, are frozen until such time liabilities have been discharged to the satisfaction of the courts. Application of Sharia law is particularly pertinent in circumstances where the deceased is under the sponsorship of his or her spouse and has a joint bank account or shared assets

Good business succession planning addresses the death, disability or retirement of a business owner as well as the sale of a business owner’s interest. (cars, rental agreements, and freehold homes). These may be frozen until the issue of inheritance is determined by the local courts, and surviving family members are often left without access to money until the authorities decide how the estate should be distributed, which could take months or even years. Consequently all successful businesses, whether sole establishments, partnerships, LLCs or free zone corporations in the UAE, should plan for the eventual transfer, succession or sale of the business. Good business succession planning addresses the death, disability or retirement of a business owner as well as the sale of a business owner’s interest. A sound business succession plan will ensure that the business owner’s objectives will be accomplished, that the most effective business transfer is realized, that funds will be available to

provide maximum financial flexibility and reduces the possibility of conflict among the remaining principals, employees and heirs thus lessening the prospect of costly and time consuming probate and succession procedures or damaging litigation. Planning for your succession will, by necessity, be a process rather than an event, as it will take time to address these issues. Also, given that most of the major decisions to be made are of a personal nature, the process used to manage each family’s business succession will vary depending on the nature of the family issues involved. For example, there may be a Sharia element that requires careful planning. Consequently, there is no one approach that will work for all business owners. One can opt to rely on a will, but in many cases the better approach is a more evolved approach, involving restructuring your company, offshore succession planning solutions and trusts. This ensures that Shariah Law does not apply to your estate and lengthy probate proceedings are avoided. Seek the counsel of specialized lawyers who will work with you to ensure your personal assets, shares in a business and investments can be structured effectively for the longterm benefit of you and your family. The reality of the situation is that expat families living and working in the Middle East fail to understand or are normally unaware of the implications of the application of local law to their assets, children and in the case of business proprietors, their business. It is therefore imperative that expats explore the necessary steps they need to take ensure that their families are protected and are prepared financially for the unexpected. You should be prepared today for all that can happen tomorrow! The author of this article is Nita Maru, a British qualified solicitor and Managing Partner of TWS Legal Consultants, a law firm dedicated to the business of wills, business succession planning, company formation, real estate, offshore structures and trusts. Their office location is Office Suite 3001, HDS Tower, Jumeirah Lakes Towers. Dubai. Tel: +971 4 448 4284, Email: nita@willsuae. com. Website: www.willsuae.com and www. twslegal.ae. For an online version, please visit:

www.smeadvisor.com/2014/04/successionplanning/

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March 2014

Getting Finance

Blueprint -

Trade Finance Trends and the drivers of change How are the global drivers of trade finance impacting regional trends and what are the new opportunities that are emerging? How are these powerful forces shaping the relevance and popularity of typical payment methods and what are new credentials preferred by Importers, Exporters and Banks? In this timely and comprehensive article, Doha Bank reviews current scenarios and presents a compelling survey of market data.

orld trade growth fell to two per cent in 2012 from 5.2 per cent in 2011, and remained sluggish in the initial months of 2013 as the economic slowdown in Europe suppressed global import demand. The deceleration of trade in 2012 was mainly attributable to slow growth in developed economies and recurring bouts of uncertainty over the future of the euro. The Currency War which had begun on account of measures brought by various Major Central Banks in response to the Global Financial crisis contributed to trade war on the Global front. In 2012 Middle East exports grew by three per cent to US$ 1.29 trillion and regionâ&#x20AC;&#x2122;s imports grew by six per cent to US$7.21 billion. The UAE has shown strong signs of growth in the last couple of years, postcrisis, with the GDP showing growth of 4.3 per cent and four per cent in 2012 & 2013

respectively. The country is predicted by Insights on trade finance experts to expand in the similar range next â&#x20AC;&#x153;Trade Financeâ&#x20AC;? in general terms means year with mainly transport, trade, tourism finance to facilitate trade transactions. In and real estate sectors expected to drive banking practice, the term is distinctly the growth. There is immense opportunity used to mean working capital finance for partnering in infrastructure expansion that includes only certain types of in the UAE due to prospective economic facilities discussed hereafter. There has growth coupled with the World-Expo 2020. to be delivery of merchandise and/or Key trade partners of the UAE have shown a service, and at least two parties are credible economic growth in the recent past required for a trade transaction to take and the outlook is projected to be quite place viz., a seller of goods/service and positive, although the growth rate has been a buyer of goods/service. In the modern slightly oscillating due to worldwide downturn days, most of the transactions are between and after-effects. With the global economic unknown/less-known parties. Therefore, activity showing strengthening signs, the trend there always is a likelihood of lack of trust is predicted to improve further in the next between these parties when it comes to couple of years largely due to the economic the certainty of delivery and/or payment. recovery being witnessed, especially in While a seller (exporter in international advanced countries. The political instability trade) may demand the buyer (importer around the world, the latest being Russia- in international trade) to pay for goods Ukraine crisis, and that of the region will of before shipment, the buyer (importer) may course involve its own drag factors, however. wish to reduce risk by requiring the seller

to see the documents to ensure that the goods that have been shipped. Financial intermediaries like banks, financial institutions and insurance companies can assist the parties in bridging the gap by providing different types of support in achieving the objectives of both the parties to secure their side of transaction. Basically payments for trade transaction can be settled in any of the following methods or by combination thereof: (a) Advance Payment – where payment precedes the shipment/service-delivery. While this is the most secured form of payment for the seller, it is the least preferred by the buyer for fear of security. (b) Documentary Credit (Letter of Credit) – where a bank independently commits to the seller (at the instructions of the buyer) for payment against presentation of certain documents of shipment, say, eg, commercial invoice, packing list, bill of lading (transport document), certificate of origin, etc., that are fully complying with the terms of documentary credit. The seller (exporter) is assured of receiving payment provided it ships the goods complying fully with the documentary requirement of the letter of credit. Similarly, the buyer (importer) is comfortable with the fact that it is obliged to pay under the documentary credit only against shipping documents establishing actual shipment having taken place. While this is the most preferred form of settlement, often sellers present documents that are not complying with the terms of documentary credit due to lack of expertise, thereby prejudicing the payment assurance. (c) Documentary Collection – where the banks facilitate settlement in trust for the seller. Although this is the costeffective method of settlement, it is not preferable for a risk-averse seller. (d) Open Account – where the trade dues are settled in pre-agreed manner irrespective of delivery dependency. This mostly takes place between the parties that are either related (say Head Office and branch) or having full trust between them. As the world is progressing towards more flexibility and advancement in

trade transactions, the demand for new approaches has increased amongst exporters, importers and banks. Depending on the agreement between the parties and cash-flow of the business, banks come to play a very important role in meeting the working capital requirement. While working capital is broadly divided into two groups,

The UAE is predicted by experts to keep expanding next year with mainly transport, trade, tourism and real estate sectors expected to drive the growth. the following well-known products/services are offered by various banks/financial institutions in Trade Finance sector. a. Fund based finance – where banks lend cash to the parties in the form of buyers credit or sellers credit. E.g.: Loan against Trust Receipt (LTR); Bill Discounting; Term loan; Export Finance; Forfaiting; Factoring. b. Non-fund based finance – where banks either facilitate payment process or issue commitments to support the trade. E.g.: Remittances; Issuance of Documentary Credit, Standby Credit; Guarantees/ Indemnity; Confirmation to Export Documentary Credit.

Documentary Credit (Letter of Credit): A documentary credit is an undertaking issued by a bank/financial institute to the seller/exporter (at the instance of the buyer/ Importer) to the effect that if the seller/ Exporter presents the documents (that

are complying with terms of documentary credit) to the designated bank/institution as specified in the documentary credit then the issuing bank/financial institute will make payment to the seller/exporter. Documentary Credits (or simply “Credit” in banking parlance) are usually governed by the Uniform Customs and Practice for Documentary Credit (UCP) published by the International Chamber of Commerce (latest publication being UCP600). Types of Documentary Credit:

a) Revocable Credit - A revocable credit can be amended or cancelled at any time by the importer without the exporter’s agreement (unless documents have been taken up by the nominated bank). Very little protection is available to the exporter with a revocable credit and it is no more seen now-a-days. b) Irrevocable Credit - An irrevocable credit can neither be amended nor cancelled without the agreement of all parties to the credit. Under the UCP600, all credits are deemed to be irrevocable. Here, the importer’s bank gives a binding undertaking to the supplier provided all the terms and conditions of the credit are fulfilled. c) Confirmed Credit - A confirmed credit is one in which the confirming bank, at the instructions of the issuing bank, adds a confirmation to the effect that the payment will be made as long as complying documents are presented. This commitment remains valid even if the issuing bank or the buyer fails to make payment. The confirming bank will make an additional charge for confirming a credit. Confirmation costs will vary according to the country involved. There may be countries issuing credit, which banks do not wish to confirm - they may already have enough exposure in that market or do not wish to expose themselves to that particular risk at all.

March 2014

Getting Finance

d) Unconfirmed Credit – Contrary to a confirmed credit, an unconfirmed credit is merely advised by the advising bank, by ensuring the authenticity of the credit, to the exporter without adding its own undertaking to make payment or responsibility for payment. e) Standby Credit - A standby credit is used as a support where an alternative and less-secure method of payment has been agreed. They are also used in some countries in the place of bank guarantees. If the seller does not receive the payment from the buyer, it may claim under the standby letter of credit. Although the International Chamber of Commerce has published rules for operating standby credits (International Standby Practices, ISP98), quite often standbys are issued subject to UCP600 as well. f) Revolving Credit - A revolving credit is used to support periodic shipments of the same commodity to the same importer. It can revolve in relation to time or value. If the credit is time revolving, once utilized it is re-instated for further shipment until the credit is fully drawn. If the credit revolves in relation to value, once utilized and paid the value can be reinstated for further drawings. The credit must state that it is a revolving credit. It may revolve either automatically or subject to certain provisions. Revolving letters of credit are useful to avoid the need for repetitious arrangements for opening or amending letters of credit. g) Transferable Credit - A transferable credit is the one in which the exporter has the right to request the paying or negotiating bank to make either part, or all, of the credit value available to one or more third parties. Transferable credit is useful for those sellers acting as traders especially where there is a need to finance purchases from the suppliers.

Bank Guarantee/Indemnity: It is a written undertaking issued by a bank/ financial institute on behalf of the principal (applicant) in favour of the beneficiary. The bank undertakes that if the principal fails to fulfill its obligations, either Financial or Performance, as per the agreement made between the principal and the beneficiary,

then the Guarantor Bank, on behalf of the principal, would make payment of the guarantee amount to the beneficiary upon receipt of a written demand/claim from the beneficiary.

the importer’s bank. Forfaiting virtually eliminates risk to the exporter, with full financing of the contract value. Ultimately, the responsibility to collect payment from the importer will rest with the forfaiter.

Pre-shipment Finance: This is a funded finance provided by banks to exporter to process and make the goods ready for shipment (until shipment) against export receivable. The name though differs in different geographies depending on the local practice, it is also known as packing credit.

Collection and Discounting of Bills: It is a major post-shipment trade service offered by banks. The seller’s bank collects

In most of the cases, the damage can be avoided if the parties to the transaction take proper care to comply with the terms of credit and international practice. the payment proceeds on behalf of the seller, from the buyer or buyer’s bank, for the goods/service sold by the seller to the buyer as per the agreement made between the seller and the buyer. Most banks provide discounting facility, wherein the seller is offered upfront cash-loan against such export/sales receivable.

Forfaiting: Forfaiting is supplier’s credit or vendor finance where a bank purchases a deferred-receivable from the exporter on a “without recourse” basis. It is a method of trade finance that allows the exporter to obtain cash from the specialized financing institute or bank by selling the export dues at a discount. Usually it is for large ticket transaction, relatively longer term (say six months or over) and backed by Bill of Exchange or Promissory Note or Documentary Credit. The Forfaiter usually will insist that it be guaranteed by

Factoring: This is a financial arrangement in which a seller sells its invoices (normally short term) to a third party called a Factor for a price. The factor purchases the client’s book debts (accounts receivables) either with or without recourse to the client and in relation thereto manages the credit extended to customers. Depending on the arrangement, the factor makes an advance of 70-80 per cent of the purchase price of the receivable amount retaining remaining the amount as margin. The factor collects the full amount from the customer in due course and settles the balance amount after deducting his commission and other charges. Sometimes the factor may not make immediate advance on the purchased accounts, but follows up with the buyer until payment of the invoiced amount. However, if the customer fails to make payment within the stipulated time, the factor makes payment to the client and proceeds to collect the payment from the customer. It is different from forfaiting in the sense that forfaiting is a transaction-based financing in which the exporter sells one of its transactions, while factoring is a financial arrangement that involves the sale of any portion of the seller’s receivables. Tailpiece:

As proved by various surveys, more than 50 per cent of drawings get rejected by banks at first presentation due to discrepancies in them. As the consequential cost to both the exporter and the economy is high, it is important for credit transactions to be handled carefully from beginning till actual drawdown. In most of the cases, the damage can be avoided if the parties to the transaction take proper care to comply with the terms of credit and international practice. A good understanding of Uniform Customs and Practice for Documentary Credits (UCP) published by International Chamber of Commerce, Paris, in addition to local statutes, is advisable. For an online version, please visit:

www.smeadvisor.com/2014/04/blueprinttrade-finance-trends/

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Getting Finance

Turn up the volume (of your success!)

How do you convert a fantastic new business idea into a high-growth company? Industry captain DP World provides a sound solution with its intensive accelerator programme – Turn8. Yousif Al Mutawa, Chief Information Officer at DP World, explains how this initiative has managed to not only support aspiring entrepreneurs but has also played a leading role in building a culture of innovation, entrepreneurship and learning within the region. This input should be no surprise: DP World has become one of the largest ports operators globally, and is ideally placed to advice on expansion strategy.

hat was the inspiration behind Turn8? Tell us a little bit about this initiative.

value for the employees of DP World. We also want to help strengthen Dubai’s culture of innovation in any way we can. The objective is to support the knowledge economy as well as cultivating the entrepreneurship and innovation ecosystem. We want to see Dubai become a global hub for innovation and new ideas. “I should also add that although these startups aren’t currently related to our industry, they have tremendous potential to open doors for future expansion, and this is another primary goal we hope to achieve with Turn8. The last objective, of course, is financial. We do have a stake in all the startups and there’s always a chance that one of these might turn into a future Google or Facebook.”

“Turn8, as you are aware, is a DP World initiative. We, have believed in innovation for a long time. It is one of our core values. And, when we think about innovation, we are often faced with the challenge of – how do we take it to the next level? Although we have been innovating in several ways, how do we formalise it – especially now because everything is changing very quickly around us. Within our company, we believe it is crucial to create a culture of innovation. “We talked about different options; one idea came up which was an “open innovation approach” – starting something outside our corporate boundaries. We decided to then start from scratch and build our innovation model like a startup. That’s What are the different stages within why when you walk in to Turn8 today, you Turn8? What are the mechanics of the don’t see any resemblances or associations programme? to DP World itself.” “Turn8 consists of three stages. The first stage is to look for ideas; go scouting for ideas What does Turn8 hope to achieve? worldwide and this is the most difficult stage. “Turn8 is a catalyst for our future innovation You would think it would be fairly easy to centre and to encourage and cultivate an generate strong ideas but that’s not always innovation culture within DP World. Our the case. For instance, in the case of Round main objective is to inspire and create added One, our web portal for idea submission

didn’t generate a lot of ideas so, we scouted for them all around the world, travelling to several places and staging events in the UAE and outside. We then managed to get around 400 startups with good ideas. Out of these, we shortlisted ten doing a lot of research and due-diligence as part of the process. We assess the teams focusing on their entrepreneurial passion, their experience to take their idea to the company formation stage, the capacity to attract investment and whether they can grow. ” “Stage two is acceleration and it’s an intensive four-month boot camp, almost like a compressed version of an MBA programme. The teams go through a lot of training and learning. They get to interact with coaches, experts with varied industry expertise, subject matter experts, and other world class leaders. There are many networking sessions, workshops and events that help create a balanced entrepreneurial ecosystem. “A critical part is the mentorship feature of the programme. We have a network of 40 to 50 mentors and at the start of each round there is a ‘mix and match’ session where the teams and mentors mutually decide who they want to work with.

Turn8 is a catalyst for our future innovation centre and to encourage and cultivate an innovation culture within DP World.

Yousif Al Mutawa, Chief Information Officer at DP World

March 2014

Getting Finance

“Stage three is post-acceleration support. What, according to you, makes Turn8 Innovation is a buzzword today. What This is when the startups are ready to approach different from other incubators and do you think is the reason behind potential investors. We have a Demo Day accelerators in the region? this? Does it play a critical role within which attracts an audience of senior executives, “There are several reasons that set Turn8 DP World? angel investors, and financiers from all over apart. Firstly, this programme is backed by “We’ve done extensive research and we’ve the world and where the Turn8 teams have a major corporate which means we are very really done our homework when it comes a chance to pitch their ideas. A few of our hands-on and practical in our training. We to innovation before starting Turn8. We startups from Round One were successful in understand the real issues that businesses have a definition in place for innovation, getting investments and they hey are currently face at different stages of their growth cycle, a governance framework and structure. in the process of negotiation, signing the and prepare our teams for these challenges. We have answers to questions such as – paperwork, deciding the investment amounts, Secondly, our accelerator is for teams who what is innovation, what is the innovation are in the ‘raw-idea’ stage – this is a very framework, what is our innovation strategy? the type of equity, and so on.” early stage and startups rarely receive any To us innovation is the creation of new support in this phase. Crucially, we don’t value to our customers, employees, partners, Does Turn8 accept applications from any discriminate based on a team’s origin, you shareholders and communities around us. particular region? “We actually accept applications from all could be based anywhere in the world. We I’d like to place an emphasis on the word across the globe. We aren’t biased to any are open to receive applications from any “new”. We are doing business as usual but particular region. For instance, in Round startup across the globe.” there’s always scope to add something new One we had teams from Pakistan, Belarus, that is of added value. Something that will Egypt, Indonesia, and so on. So, it’s a very be a big boost to our bottom line. This is diverse environment.” what innovation means to us. Innovation, To us innovation is the in DP World, is a whole culture; it’s a way How many rounds will Turn8 have each creation of new value of living. year? “I think innovation is a buzzword because to our customers, “We are looking to have two rounds per year of the digital revolution and the fact that employees, partners, which means we are taking on board 20 technology companies are advancing shareholders and teams per year. The second round started rapidly. Companies are realising that if they in February and the third one is scheduled don’t keep up with this fast-paced change, the communities to begin in August. This will continue as a they aren’t going to be able to survive. They around us. cycle, hopefully galvanising an innovation have to constantly innovate to stay alive. ecosystem around it.” And, it’s not just in the technological sense, it’s in the way you think, behave, operate, manage your supply chain, deal with your customers, and so on.” Is there any particular business model that you’ve discovered works better than others? Do you prefer any one over the other?

“There are several different types of business models that have potential and can work. We work with a ‘lean startup business methodology’ which means that you have to be very careful about your resources – something that is crucial for any startup. “We’ve seen a lot of startups come in with teams of seven, and they have actually created roles for each individual. But, the question is - do they actually need so many people, especially at this early stage? A lot of individuals within these startups are entrepreneurs and have a natural flair of understanding how it works, and have even had previous experience in some cases. On many occasions the people leading these startups are actually corporate employees and are used to a more corporate style of working. So they think they need

someone for HR, IT, Marketing and so on. But, this kind of structure can become overly bureaucratic. You have to be lean not just in terms of people, but also in the tools you use. For instance, when it comes to marketing, social media is a great tool available for little to no cost. “And of course, we do train our startups in this regard. We have workshops that encourage them to be smart with their resources and use their funds wisely. We do provide a lot financial education to the teams highlighting topics such as managing your profit and loss statements and calculating return on investment measures. ”

Shortlist ten startups

Scout for ideas

Assist the teams in business development and fund raising

Each startups gets US$30,000 over four months

A legal framework is set in place within each startup

We often see that failure has a very negative connotation today, but the fact is that there is a very low survival rate within startups. How do you look at failure as part of the portfolio of incoming teams?

“Failure has always had a negative connotation and there’s a constant fear that it can be bad to fail. And, this isn’t something that is just seen here, it’s a worldwide phenomenon. But, in reality, failure is a gift. People who’ve failed are actually wiser. That’s why when shortlisting teams we ask them, “Have you tried something and failed?” or “Tell us about a bad experience you’ve had in a previous business”. We encourage them to mention that, we want to hear these stories. I’m a strong believer of the fact that if you don’t fail, you don’t learn.” Given their rising popularity and success, do you have a bias towards tech startups?

“We don’t have a bias towards any particular type of industry. It just so happens that Round One and Round Two have a high number of tech startups. Although, these tech startups do have mobile apps that are spread across several industry sectors. The reason goes back to our ‘lean business methodology’. We’ve started lean; we don’t have sophisticated labs or a big innovation centre with advanced technology mechanisms- for now. We wanted to go for quick wins – low-hanging fruits. If you want to go for quick wins, you need to ask yourself, “Can I take this idea and implement it quickly?” or “How long will it be before I can take this idea to market?” If there’s a business idea with a simple business model that can start to work quickly, I am interested in it. Compare this to nanotechnology or robotics or medical

Demo Daymeet and pitch to investors

Four month intense acceleration training, coaching, learning

innovation that requires a longer time to develop, more funding and sophisticated technology facilities. In these cases, you need a lot of investment just to start with the R&D. With digital apps, they have a high growth potential, are quick to reach the market, and can be financially lucrative.” What kind of funding support do you provide to the Turn8 teams?

“DP World is of course the main sponsor of Turn8. In Round Two, we are funding each team with US$30,000 in pre-seed capital over the period of four months. This fund goes towards their operational tools, marketing initiatives, and project development. They get a lot free perks as well. In addition, if there are individuals within the team that need to move to the UAE, it goes towards their visa, accommodation, tickets, and so on. They also get a small amount in cash as part of this fund.” You’ve mentioned that Turn8 encourages the teams to have a legal framework in place right from the start. Tell us a little bit about this.

“We set up a legal framework within each team or startup right from the inception. This includes addressing key aspects such

Startups select their mentors during ʻmix and matchʼ networking sessions

as intellectual property, what to expect once they are incorporated, who will be on the board, and so on. It’s quite similar to a shareholder type agreement framework. We are proud to say that we are on par with the standards being used within incubators in Silicon Valley today. We realise the importance of having a legal structure which is why we start it right away. “Another interesting legal aspect that we cover is the agreement between the mentor and the startup. Depending on their mutual agreement, there is a contract put together that states the role of the mentor within the startup – as an advisor, board member or shareholder.” What are the next steps for Turn8? What’s your vision for the future?

“Moving forward, we want to work with other universities and corporates, which will allow us to combine our pool of resources and provide added facilities. As and when we attract more investors, partners and startups, we will definitely aim to take Turn8 to the next level.” For an online version, please visit:

www.smeadvisor.com/2014/04/turn-upthe-volume-of-your-success/

March 2014

Getting Finance

‘Paying’ to your strengths As most customers today have taken the leap of mobility and are increasingly online, businesses are left with no option but to do the same. After all, business is where the consumers are! And, one crucial element that can help your SME successfully embrace this technological transformation is an online payment service. We asked Laurent Watkim, Regional Manager, PayPal Middle East & North Africa, to explain further…

Laurent Wakim, Regional Manager, PayPal Middle East & North Africa

hat is an online payment service? How is it different from traditional payment methods?

Online payment services are ones that allow consumers and merchants to process payments online without the need for any physical interaction. Traditionally speaking, you need to be physically available at the shop to pay for goods and services. Talking about our offering, PayPal is an electronic wallet and it’s the most convenient and secure way to pay and get paid online. What that means is that as a buyer, you can open a PayPal account online in seconds, link your preferred payment card, whether Visa or MasterCard and shop online right away on more than nine million websites that accept PayPal. You just need to use your e-mail address and your PayPal password to pay as we never share your payment details with any merchant. As a merchant, you can also open your PayPal account in seconds and start receiving payments on your website from anyone who uses PayPal in the world. This removes a lot of limitations for both buyers and merchants. What are the benefits of setting up an online payment service?

It offers a measure of flexibility you don’t find in other services. These services are often installed instantly and relatively far cheaper than traditional payment gateways. Since they’re third party services, business owners don’t need to worry too much about set up costs or continuously upgrading infrastructure. The key of course is to find a partner you trust. As a merchant, setting up your PayPal account allows you to start accepting payments on your website or though invoices instantly. With PayPal, you can receive payments from our 143 million active accounts and from 193 countries around the world. In addition, PayPal won’t charge any set-up fees, monthly fees or maintenance fees. You only pay a small commission every time you receive a payment. What are some of its disadvantages?

From a technical point of view, accepting payment online is all very positive. It brings a new channel with broader reach

than a physical store typically. However, in the region, consumer trust is a big issue, and while we’ve made strides in the region and beyond, many Middle East consumers are still reluctant to process payments online. Fortunately, that is changing. We expect e-commerce to grow to US$15bn by 2015 in the Middle East region. Are there any security implications of setting up an online payment service? How can SMEs ensure that all transactions are safe and secure?

There is a constant race between security specialists/solution providers and fraudsters. The bottom line is that service providers need to always be ahead and ensure that the security of their customers is at the heart of everything they do, be it sensitive financial details, personal information or any other type of information. PayPal take security very seriously, and we’re constantly working on making sure all your details are protected at all times. We even took it a step further with the PayPal Buyers Protection Programme that protects your rights as a consumer. How can PayPal help SMEs in the process of setting up an online payment service?

It’s a very straight forward process, all you have to do is go to PayPal.com and

You need to choose a payment partner that has proven track record and a credible database of consumers and merchants. create a new Business account. That’s it! We’ll provide you with everything you need to add PayPal to your website (including the branding). It’s instant, easy and there are no set up costs or hidden fees. This is important for startups who need all the capital they can spare. Our fee structure is transparent and is designed around volume of sales, and we’re always available to work with vendors on tailor-made solutions when they meet a minimum set of sales requirements. From a customer perspective, how does an online payment option add value?

It’s convenient, safe and easy to use. Again, I need to stress that choosing the right partner will make a world of difference. You need to choose a payment partner that

March 2014

Getting Finance

has proven track record and a credible database of consumers and merchants. That will inspire confidence in your business, and will give your potential customers the trust necessary for them to make the purchase.

Cross border e-commerce is booming in the region with over 70 per cent YoY growth

What kind of costs will an SME incur to avail of this service?

With PayPal, there are no signing up fees, and we don’t require a minimum deposit. PayPal charges the merchant based on the volume of sales. For example, a website that sells anywhere between US$1 – US$3,000 per month will be charged differently to a merchant that sells in excess of US$50,000 monthly. Our fee structure is very transparent and consistent. You can find more details on our website.

e-commerce is expected to grow and reach US$15 billion by 2015

According to our PayPal Insights Report

m–commerce is expected to increase to 20 per cent by 2015

Source: According to PayPal Insights Report

Does an online payment service also offer added benefits such as a specialised interface for mobile devices?

Smart phone penetration is at an all-time high in the region, and m-commerce is gaining momentum both globally and regionally. At the moment, m-commerce makes up around 10 per cent of all online shopping across the region, but we’re expecting that to hit 20 per cent by 2015. Merchants and service providers need to understand the importance of mobile and tailor their offerings accordingly. You need to follow the consumers where they are. We have recently launched the PayPal mobile application for both Android and iOS across the MENA region, which allows users to easily manage their PayPal accounts on the go. In general, what kind of e-commerce and m-commerce trends and opportunities do you see in the region?

There has definitely been an increase in

Merchants and service providers need to understand the importance of mobile and tailor their offerings accordingly. You need to follow the consumers where they are. the e-commerce and m-commerce trends in the region. According to our PayPal Insights Report, e-commerce is expected to grow and reach US$15 billion by 2015. Cross border e-commerce is booming in the region with over 70 per cent YoY growth, and m–commerce is expected to increase to 20 per cent by 2015.

Laurent Wakim, Regional Manager, PayPal Middle East & North Africa Laurent Wakim is the Regional Manager for PayPal Middle East & North Africa and is leading the expansion of PayPal in the highly promising MENA region. Laurent joined PayPal in 2010 as Manager in the EMEA Finance department. In 2011, he became Head of Sales & Business Development for PayPal Middle East & North Africa. Since October 2013, Laurent is the Regional Manager for PayPal Middle East & North Africa. Laurent began his career in 2006 as a strategy consultant at McKinsey & Company, serving clients in several industries, including Telecom, High-Tech, Banking & Insurance, in Europe and in Middle East & North Africa. He is a graduate of Ecole des Ponts ParisTech in Paris, with a Masters in Mechanical Engineering.

More specifically, what are the adoption trends in the region when it comes to using online payment services?

The numbers are very encouraging. At the moment, travel purchases and consumer electronics are the most popular online products with an average spend of US$1,521 and US$250 (per customer) respectively. Other categories are on the rise like clothing, jewellery and even car parts. It’s encouraging to see more and more “traditional” goods being purchased online. CoD makes around 80 per cent of all e-commerce, however we expect it to decline to 60 per cent by next year, while payment cards and PayPal usage are on the rise. Is there any particular industry or business sector that has a larger adoption rate than others?

Yes. We revealed in our PayPal Insights Report for the MENA region (released last year), that has been increases in online spend on items such as electronics, computers and fashion. However, the most dominant industry or item for online shopping has been travel, which takes the lead with an annual spending of US$1,521 per consumer. For an online version, please visit:

www.smeadvisor.com/2014/04/payingto-your-strengths/

March 2014

CUSTOMER SERVICE

Stand out from the crowd – reaping the rewards of customer service leadership

In today’s competitive markets, smart companies strive to “stand out” from others in the crowd. Low pricing is one approach, but it eats away your profit margin. Super-high quality is another approach, but can be hard to deliver if your product is a commodity item, easily available from other sources or vendors. The world’s leading educator and motivator for upgrading customer service and uplifting service culture - Ron Kaufman - explains further.

abulous service can help a great deal – and it can be done in so many ways! Customer service leadership simply makes sense as a way to deliver distinction. Here’s one approach to customer service leadership that delights me from a web-based CD store with an attitude of customer adoration. Read the cheeky message I received recently, and see if it doesn’t make you smile, too.

Dear Ron, Thanks for your order with CD Baby! Your CD has been gently taken from our CD Baby shelves with sterilized, contamination-free gloves and placed onto a satin pillow. A team of 50 devoted employees inspected your CD and polished it to make sure it was in the best possible condition before mailing. Our packing specialist from Japan lit a candle, and a hush fell over the crowd as he put your CD into the finest gold-lined box that money can buy. We all had a wonderful celebration afterwards and the whole party marched down the street to the post office, where the entire town of Portland waved ‘Bon Voyage!’ to your package, on its way to you in our private CD Baby luxury jet. I hope you had a wonderful time shopping at CD Baby. We sure had a wonderful time taking care of you. Your picture is on our wall as ‘Customer

Ron Kaufman

March 2014

CUSTOMER SERVICE slides for children inside their restaurant buildings. McDonald’s french fries are made from potatoes, much like everyone else’s. Their play space stands out in the fast-food crowd. How many times have you left your tube of toothpaste wet, wrinkled and gooey on the bathroom sink? Procter & Gamble helped solve the problem with the first standup toothpaste tube. Their toothpaste container stands out from the crowd because it offers a unique customer service improvement. The Garden Café in Dubai serves many customers who are bachelors, always on the move and short of time. So the Café provides a lunch and dinner buffet of good food and drinks, but also irons your shirts and shines your shoes while you eat! You can do this, too. (Stand out from the crowd, not the laundry.) of the Year’. We’re all exhausted, but can’t wait for you to come back to CDBABY.COM! Thank you once again, Derek Sivers, President CD Baby, the little CD store with the best new independent music, http://www.cdbaby.com I had such a great time reading this note and sharing it here with you as an example of customer service leadership that works. To stand out from the crowd, find a style you like and take it to a whole new level. Customer service leadership will get you noticed. Consider the wisdom in this magnificent quote (I live my life in part on its guidance):“Be outrageous. It’s the only place that isn’t crowded!” Decide what you want to be known for and find a way to do it, be it, say it, give it, live it and share it more outrageously than ever before to demonstrate customer service leadership. Go ahead and shoot for the moon. Even if you miss, you’ll still be among the stars because of your customer service leadership. Make A Customer Service Improvement That’s Different

There are many ways for a business to “stand out from the crowd.” One approach is to give your customers more of what they ask for as a customer service improvement. If others are fast, you go faster. If others are clean, you be cleaner. If others are cheap,

Find completely new and different ways to surprise, intrigue, support, nurture and delight your clients with a customer service improvement that really wows them. you can discount deeper. If your competitors offer a lot, you offer even more. This approach has obvious problems. First, your top position can be overtaken by anyone else offering “even more.” Second, the cost of escalation can become overwhelming, making the customer service improvement a real problem. You need happy customers but healthy profits, too. A different approach is worth your time and effort: Find completely new and different ways to surprise, intrigue, support, nurture and delight your clients with a customer service improvement that really wows them. For example, international airlines compete on big seats, quality service, good wine and movies. But Virgin Atlantic was first to offer neck and shoulder massages on all long-distance flights. They stand out in the airline crowd because of this distinct customer service improvement. Most quick-service restaurants provide clean counters, fast delivery and low prices. But McDonald’s put enormous, colorful

Key Learning Point To Customer Service Improvement

Anyone can compete by doing “more” of what’s already expected. But there’s another way to be distinctive: Be different! It’s a customer service improvement people will take note of. Action Steps To Customer Service Improvement

Make a list of all the “usual ways” your organization offers good customer service. Now think of totally different ways you could surprise, intrigue or delight with an unusual customer service improvement. What bothers your customers? How can you fix it? What do they do before or after your service? How can you integrate it? What do they bring, carry or take away? How can you replace it? The first bookstore to offer plush chairs and fresh coffee changed the industry completely. The first bank that offered drive-through service transformed our expectations. What can YOU do to stand out, stand up – be different? Copyright, Ron Kaufman. Used with permission. Ron Kaufman is the world’s leading educator and motivator for upgrading customer service and uplifting service culture. He is author of the bestselling “UP! Your Service” books and founder of UP! Your Service. To enjoy more customer service training and service culture articles, visit UpYourService.com. For an online version, please visit:

www.smeadvisor.com/2014/04/stand-outfrom-the-crowd/

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March 2014www.aﬂogistics 51 .com

Entrepreneurship

In focus: Entrepreneurship in Economic Development Forum The recent Entrepreneurship in Economic Development Forum, held at Qatar University College of Business and Economics, proved to be a melting pot of entrepreneurial ideas and fresh talent. It’s no wonder that the event attracted some of the biggest names from the region’s business fraternity. Victoria Conolly, Associate Senior Editor, Private Sector Qatar magazine, offers exclusive details of what went on…

he Entrepreneurship in Economic Development Forum was successful in highlighting the importance of entrepreneurship and its contribution to the development and growth of the private sector. Furthermore, the event shed light on the role of entrepreneurship as a stimulant in the continued economic growth of the Gulf region as a whole. Entrepreneurs are recognized as important drivers of economic and social progress, and rapidly growing entrepreneurial enterprises are viewed as important sources of innovation, employment and growth. After the first generation of pioneering Gulf entrepreneurs who played a vital role in building foundations of the modern Gulf economy and its private sector; the region now looks towards the next generation of young business men and women to develop the ideas and products that will lead SMEs onwards and upwards towards greater success. The opening ceremony of the Forum was expertly chaired by Al Rayyan TV anchor Sabah Al Kuwari. The event featured key note speakers such as Professor Sheikha Abdulla Al-Misnad, the President of Qatar University; His Excellency Sheikh Faisal Bin Qassim Al-Thani, Chairman of the Qatari Businessmen Association and a Trustee of Qatar University; and Abdulaziz Bin Nasser Al-Khalifa, CEO of Qatar Development Bank. Fundamental questions explored in the various sessions of the Forum included:

• What are the top growth accelerators and challenges faced by entrepreneurs? • What strategies have executives used to overcome these challenges and turn their ideas into successful business? • What are the key factors that position early-stage companies for long-term sustainable growth?

The Entrepreneurship in Economic Development Forum was successful in highlighting the importance of entrepreneurship and its contribution to the development and growth of the private sector.

Consisting of five sessions with titles such as the role of the government in supporting SMEs, policies and programmes for financing young entrepreneurs and common mistakes and practical advice for business startups; the Forum gave an accessible guide for young people thinking of starting their own business as well as advice on how to avoid common pitfalls such as rapid expansion and poor financial planning, both which are common problems faced by startups in the region. Sessions were interspersed with real life case studies of small business successes providing delegates with an invaluable insight into the world of the entrepreneur. “A successful entrepreneur is someone who knows what he doesn’t know.” Key speaker Roger Karam, Founder and Chairman of Quality Construction Company Lebanon said: “An entrepreneur by definition is someone who wants to create something new and commit to

delivering a better experience than his competition.” He talked about the importance of an entrepreneur understanding their limits and choosing the right partners, “Time is money if you run out of money its game over.” Speaking on day two of the event, Aysha Al Mudehki Executive Director of Injaz Qatar, spoke about the key role that her organisation plays in the improvement of educational attainment and future career opportunities for young people in the region. “To have this kind of opportunity for students to reach the next level is beneficial for all.” Established in Amman in 1999 and operating in over 120 countries worldwide and 15 in the Arab World, Injaz is the only organisation in the MENA region that aims to equip students with practical business-related skills as part of the regular educational curriculum. The Injaz programme offers students an unrivalled programme of educational opportunities that will strengthen their confidence,

innovation, deepen their understanding of the business world, and give them professional qualifications to enable their success in the global economy. “The next generation must learn the life and business skills to take them into the future,” explained Al Mudehki. Delegates left the beautiful open plan learning spaces that housed the college of Business and Economics and stopped for a while to chat to representatives from Forum sponsors such as Qatar Petroleum, Qatar Business and Finance Academy and Qatar Development Bank; a final chance to explore issues, ask questions and of course start work on building that allimportant network of business contacts.

As the business men and women of the future leave The University of Qatar laden with bags full of goodies and brains full of ideas, the final question must be, have I just met the next Steve Jobs or Mark Zuckerberg? There is a good chance that the world’s next big thing may well originate from the Gulf. For an online version, please visit:

www.smeadvisor.com/2014/04/ entrepreneurship-in-economicdevelopment-forum/

March 2014

Managing Risk

No smoke without fire Fire is the largest cause of office deaths worldwide - whether resulting from something as simple as a faulty electrical socket or a major warehouse fire that decimates the business. Here in the GCC, the statistics are especially worrying: while globally, deaths from workplace fires account for only 15 per cent of the total, in this region the figure is 27 per cent. Itâ&#x20AC;&#x2122;s simply vital to put the right fire prevention measures in place - and here, Senior Editor Paul Godfrey assesses what needs to be done to make an SME a good deal safer and more hazard-awareâ&#x20AC;Ś

Itâ&#x20AC;&#x2122;s a chastening fact that the majority of workplace fires have very simple causes, and could quite easily have been averted.

March 2014

Managing Risk

t’s a chastening fact that the majority of workplace fires have very simple causes, and could quite easily have been averted. The reality is that fires are often allowed to break out due to an extraordinary lack of common sense (or at least foresight) on the part of the business’ owner. Let’s begin by reviewing how to stop some of the classic errors of judgment. • Never keep LPG cylinders or Calor Gas containers (used for cooking, etc.) next to a heat source. These must be kept in a cool storage area, preferably outdoors (but not in the open sunlight or where they will be heat up excessively). Ideally, they will be kept in a locked, fireproof cabinet of metal construction and conforming to safety standard DIN4102. Similarly, petrol/diesel cans should never be kept inside the building. • There should be an absolute ‘no smoking’ policy throughout the building. Smokers should have an area reserved outside the building, with a concrete, nonflammable floor and proper ashtray provision. This is acutely necessary if there are flammable items such as paper rolls, paints, chemicals, etc. in storage in the premises. • Staff should not have living quarters inside the building, where cooking materials, cigarettes, matches etc. can ignite flammable items kept in storage. • Use only properly-qualified maintenance teams: ask to see certificates of professional competency - never decide who to use purely based on price alone. • Ensure that all staff are aware of basic risk prevention strategies such as never using electrical devices near water, never replacing a light bulb without turning off the electricity source, and never forcing a plug into an unsuitable socket without the right adapter. • Always run electricity for each office from a suitable mains connector - never from a secondary socket. Offices which run their power from an upstairs source (with cables draped down the building) are in severe danger of overloading the circuit and causing catastrophic fires. • Never keep two or more types of flammable materials together, eg, in a paper store, don’t also store cleaning materials. Not only will both types of good catch fire, but the second will

accelerate the fire already in process and may turn a moderate incident into a raging inferno. The role of signage

One of the cheapest and simplest ways of keeping fire at bay is to install good signage. This also has the advantage of being totally proactive - reducing the likelihood of there being a fire in the first place. Signage can be used to – • Highlight a danger (eg, ‘Beware - hot surface’!) • Prevent hazardous actions (‘No Smoking’ is the classic example) • Instruct correct usage (‘Only connect red cable to gas inlet’, etc.)

If your staff don’t universally have a good understanding of English or Arabic, signage should appear in the most popular mother tongue. Keep in mind that signs can be either visual or verbal, or both. If your staff don’t universally have a good understanding of English or Arabic, signage should appear in the most popular mother tongue - or you can put the emphasis on visual signage, too. Always use professionally-made signs that are clear enough and large enough to do the job - the cost will still be relatively low and this is no area in which to skimp a few dirhams. Lives are at stake. The role of maintenance

One of the major factors responsible for the outbreak of fires is worn, rusty or frayed connections on electrical and gas equipment. All equipment should be checked annually by a qualified electrician/gas installation expert. This review should also be supplemented by a visual inspection from a senior manager every month - and the first sign of worn fittings or connections should trigger a visit from a specialist.

Another aspect to keep in mind is that not only is there a fire risk, but an electric shock generated by worn electrical connections can quite easily kill. Unlike other kinds of accident, electric shocks have a very high fatality rate - and it simply isn’t worth putting staff (or yourself!) at risk. Similarly, it’s important to check the condition and tightness of nozzles on gas cylinders and containers. All nozzles should conform to safety standard DIN 4661-4. There should be no signs of rust - always a danger if cylinders are kept outdoors in climates with high humidity. Failure to maintain gas cylinders properly can lead to major fires, as leakage of gas leads to a high concentration of flammable vapour in the air, which can be ignited by naked flames such as a cooking hob. Protecting the essentials

Quite apart from the greatest and most valuable asset of all - your staff - your offices will have equipment and documents that will be a high priority to protect in the event of a fire. One of the best precautions is to use a ‘zoning’ approach, so that there is a particular area that receives a high level of protection, and where you know your most valuable items will be relatively safe. When you identify an area of this kind, the first necessity is to protect with a fireproof internal door. A heavy timber door conforming to BS476 will resist a relatively intense fire for 30 minutes giving firefighters time to extinguish the blaze before it can wreak irreparable damage to valuable goods. While it goes without saying that it will be important to protect areas with PCs, laptops, etc. in this way, the same is also true of cash offices and Accounts departments. Larger sums of cash and irreplaceable hard copy files can also be stowed away for additional safely in a lockable steel cabinet. This can also be a valuable deterrent against theft and break-ins. It is also vital to ensure that vulnerable areas of this kind are kept as far away as possible from potentially hazardous areas such as kitchens, coffee-making areas and zones for storage of LPG gas and chemicals - limiting the risk proactively as well as dealing with it defensively through safety procedures.

Similarly, areas like kitchens and sensitive storage areas should always have a ‘closed door’ policy and use a half-hour fire door conforming to BS476 - effectively preventing the outward-bound spread of fire. Defensive systems

The cost of sprinkler systems had dropped significantly in the last decade – a relatively comprehensive system can cost as little as AED3 for each sq.m covered. Sprinkler systems are one of the most effective firefighting techniques - worldwide, in 2012, they extinguished 99 per cent of all fires in which they were activated. One of the advantages of a sprinkler system is that it is completely automatic and requires no subject knowledge or training on the part of staff. This is in contrast, for example, with fire extinguishers. Nonetheless, fire extinguishers should be available in key danger spots throughout the offices and both water and C02 versions should be present. Staff should be trained in their use by a qualified fire prevention expert or a representative of your insurer.

Extinguishers should be located adjacent to kitchen areas, storage zones and also in the areas of the office that have most staff activity. Their presence should also be highlighted at least once each month in staff meetings. Sprinkler systems and fire extinguishers should be accompanied by a number of smoke detectors, spread throughout the premises. Only install detectors which comply with safety standard DIN EN 14604. Check all smoke detector batteries once a month and ensure that replacements are readily available on the premises. The walk-through audit

One of the most effective ways of checking that good fire prevention is in place is to take a walk through your office premises, with a notepad and pencil (or tablet), recording any anomalies or obvious risks that you see. Check for factors such as – • Layout of building - are the main fire risk areas next to the most busy staff areas, or where valuable goods and assets are kept? • Are gas cylinders and containers safely kept out of the heat and direct sunlight?

• What is the condition of cabling on electrical and gas appliances? • Are people smoking inside the building? • Are office chairs made of fireproof materials? • Are all smoke detectors operational, and in places where they will be of practical value? • Are fire extinguishers in place in vulnerable areas? One last point - in many ways the most important of all. Check that all exits are fully operational and that the areas they lead to are not blocked. All too many businesses lock fire exits or place stored goods in their way. In the event of a fire, if fatalities occur because staff cannot escape, you could face a life sentence for manslaughter. As with so many aspects of fire prevention, a small, simple factor - in this case a well-maintained and operational exit door - can make all the difference between life and death. For an online version, please visit:

www.smeadvisor.com/2014/04/no-smokewithout-fire/

March 2014

LEGAL

Roadmap - understanding the new employment legislation in the GCC The powerful and transformative changes recently impacting employment legislation in many areas of the GCC look set to continue in 2014. It’s vital that SMEs looking to expand overseas should understand these trends thoroughly - and here we present a convenient summary of what’s happening nation to nation. The following article is authored by Sara Khoja, Clyde & Co; Steve Brown, Rob Little and Edlyn Verzola, ASAR; Alessandra Zingales, Jihad Al Taie.

013 witnessed continued legislative developments in the labour and employment field with a strong emphasis across the GCC on eliminating illegal working, promoting the employment of nationals and regulating the provision of employee benefits such as health insurance. Below, we trace these farreaching and often complex changes across the key territories in the region. Kingdom of Saudi Arabia (KSA)

The aim of the recent labour reforms (starting with the introduction of the Nitaqat system in August 2011) is to ensure an integrated labour market, where the gap between employing in the private sector and the public sector (certainly for KSA nationals) is closed. In return for opening up its markets, KSA is requiring foreign businesses (as well as Saudi employers) to invest in Saudi nationals and

promote local employment. With 75 per cent of the population being under 25 years of age, the imperative to create jobs and maintain job security for future generations is paramount. Unlawful working Alongside Nitaqat and other ‘Saudization’ measures, KSA witnessed its biggest crackdown on illegal workers in March 2013. The subsequent six month Amnesty ended on 3 November 2013, during which three million foreign workers rectified their immigration status, voluntarily repatriated or were deported. Labour inspections continue amid a determination to reduce illegal working. A draft ministerial resolution was announced in January 2014, providing for penalties of SAR 10 million and a five-year prison sentence for employers falsifying their Saudization targets by adopting measures such as employing shadow KSA national employees.

Unemployment benefit Legislation providing for unemployment benefit insurance was published on 1 July 2013 (expected to be implemented in the first six months of 2014), and provides for employer and employee contributions of one per cent of basic salary and housing allowance to be made to GOSI, to cover unemployment allowance for up to six months. Labour Law amendment In early 2012, over eighty proposed amendments to the Labour Law were published and have been debated at great length. Most recently on 17 December 2013, the Minister of Labour announced that within three months, the working week would be reduced to five days/40 hours. Also in December 2013, the Shoura Consultative Council discussed and approved the following amendments to the Labour Law:

Unauthorised absence Amendment of the Labour Law’s article 80 with respect to termination for unauthorised absence. The current article provides for termination without notice and payment of end of service gratuity, if an employee is absent for 10 consecutive days (provided a written warning is issued after five days) or for 20 non consecutive days (provided a written warning is issued after 10 days). The amended provision provides for unauthorised absence of 30 non consecutive days (with a written warning issued after 20 days) and 15 consecutive days (with a written warning issued after 10 days). Contracts Fixed term contracts will convert into unlimited term contracts upon the third renewal of a fixed term (currently this is on the second renewal) or if the total length of service under a series of fixed term contracts is four years (currently the period is three years). Compensation for unjustified termination To provide a statutory formula for calculating compensation for unjustified termination of employment; the proposed formula being: • 15 days’ remuneration for each year of service where the employment contract was unlimited. • Payment for the remainder of the term where the employment contract was for a fixed term. • Provided that in either case, the compensation is no less than two months remuneration. Once discussed by the Shoura Council the measures require a Council of Ministers resolution followed by a Royal Decree to come into effect. Introduction of a minimum wage? One of the key barriers sighted by private sector employers is the high wages Saudi nationals require in comparison to nonnationals, particularly those from South East Asia performing more junior and manual roles. A structural impediment therefore to employing Saudi nationals is the absence of a minimum wage applicable across the private sector for all employees (meaning that the attraction of employing a nonnational (ie the lower headcount cost) would not apply. To date, such a measure has not

yet been discussed. However, the Ministry of Labour has published an intention to promote higher wages through Nitaqat through the following: • A Saudi national on SAR 6,000 to 12,000 will count as two employees. • The minimum wage under Nitaqat will be raised to SAR 4,000. • The average total for applicable quotas will be calculated over a 26 week reference period. Other legislative developments in 2014 will be: • Continued transition of all immigration services to an electronic system. • Continued implementation of the wages protection system with the second stage enforced on 1 December 2013. • An increase in the bank guarantee for obtaining recruitment licences; the current requirement of SAR 300,000 every two years will increase to SAR 450,000 every year. • The replacement of Labour Committees and the Supreme Labour Appeals Committee with Labour Courts integrated into the Sharia Court system. Any complaint will first have to be raised with the labour office in the region in which the employee has been carrying out his work for a confidential pre-conciliation process. Once a complaint is submitted (whether in person or electronically) a dispute hearing should be scheduled within a week and the parties have 21 days to reach an amicable agreement, failing which the dispute will be referred to the courts. If an agreement is reached, it will be documented and enforceable within five days of the date of the settlement agreement. The Ministry of Labour has also recently launched the ‘together’ or ‘ma’an’ online portal which enables employers to submit feedback on proposals and recently lead to the Ministry delaying the implementation of a proposal to cap expatriate employees’ work and residency authorisation to six to seven years.

Minimum earning requirements were increased for individuals to sponsor parents or grand parents (AED 20,000 a month) with additional requirements to provide rental agreements to evidence an ability to provide adequate housing for dependants. In January 2014, Sheikh Mohammed has made several announcements confirming his vision for ‘Emiratisation’ and a desire to increase the rate of UAE national’s employment in the private sector tenfold by 2021. The Minister of Labour, Saqr Ghobash has also stated in interviews in January 2014, that legislative amendments to the UAE labour laws are being considered in order to enhance the attraction of the private sector for UAE nationals, including potential amendment of the regulation of working hours, the working week, leave entitlements and holidays. On 20 January 2014, the UAE Cabinet endorsed a draft law providing for mandatory military service for all Emirati males between the ages of 18 and 30, for nine months to two years. The details of the scheme for those in existing employment are yet to be announced; however, press reports state that time spent on military service will be counted for the purposes of calculating employee benefits, continuous service and pension entitlements. In January 2014, there was also an announcement that the Government will introduce legislation providing for self employed UAE nationals to be enrolled in the state pension scheme. The aim being to encourage more UAE nationals to set up their own enterprises and SMEs. State of Qatar

In late 2013, Qatar announced the implementation of compulsory private health insurance for employees. Legislative changes in 2014 involve an overhaul of policy and implementation of immigration regulations; in particular the recognition of certain professions; experience and qualifications (engineering being a principle focus).

United Arab Emirates (UAE)

Emirate of Kuwait

The Emirate of Dubai announced compulsory health insurance provision for employees in December 2013, to be introduced on a staggered basis according to the number of employees employed within an organisation.

(contribution from Rob Little & Edlyn Verzola, ASAR) Deportation of foreign nationals In common with KSA, 2013 saw the Government launch a concerted effort to

March 2014

LEGAL

crackdown on illegal workers. A crackdown by Kuwait authorities on foreign nationals illegally working or residing in Kuwait started in March 2013 when the Minister of Social Affairs and Labour, Thekra Al-Rasheedi, announced a plan to reduce the number of foreign expatriates by half, from two million to only one million by 2023, culling about 100,000 expatriates per year. “This is part of the Ministry’s efforts to regulate the labour market, curb the phenomenon of marginal labour and restore the demographic equilibrium of the country,” Al-Rasheedi said in a statement to the Kuwait News Agency. So far thousands have been arrested and forcibly deported for an array of violations. The campaign is being coordinated by a number of ministries and security departments, and is being spearheaded aggressively by Assistant Undersecretary for Traffic Affairs Major General Abdul Fattah al-Ali, with the objective of “cleaning” the country. This campaign has left Kuwait’s foreign labour force living in fear of deportation. An easing of the arrests and deportations has been observed by the expatriate community in the last three months of 2013 as heated debate on the ethics and legality of the procedure adopted by Kuwait authorities raged in the media and in the diwaniyas of the local population. Age 65 limit; no transfer of employment; non-renewal of contracts There is no mandatory retirement age for employees working in Kuwait. Generally, an employee’s age is significant only as it relates to the benefits that may accrue to employees who contribute to the Social Security fund, which applies only to Kuwait nationals. Expatriate employees who are 65 years and above, who continue to work in Kuwait - for the same employer - may renew their work permit/visa automatically without any issue. However, they cannot transfer sponsorship to another employer unless an exception is expressly obtained from Kuwaiti authorities. Similarly, expatriates from outside Kuwait who have reached the age of 65 or more will not be given a work permit unless an exemption is obtained from the Kuwaiti authorities. There are quite a number of employees working in government departments and ministries and government owned and controlled corporations that are above

the age of 65. Recently, there have been reports that the contracts of these “above-65” expatriate employees are no longer being renewed or that the employees are being asked to retire at age 65. This has given rise to the belief that expatriates working in government entities would no longer be allowed to work past the age of 65. However, no formal confirmation of this policy has been issued by the Kuwaiti authorities. Restrictions on driver’s license This resolution has affected many foreign nationals working in Kuwait on a practical basis. Ministerial Resolution No. 393 of 2013, “Amending Certain Provisions of Ministerial Resolution No. 81/76 Regarding the Executive Regulations of Traffic Law” (New Traffic Rules) was passed recently and is being implemented by Kuwait’s Traffic Department. The New Traffic Rules impact all holders of driver’s licenses in Kuwait; it applies to all persons applying for new licenses as well as those renewing their licenses. For example, parties who are seeking to renew their licenses which are about to expire would have to comply with the new requirements, i.e. they would have to show that they have two-year residency, a monthly salary of at least KD 400 and have a university degree except if they are able to prove that they fall under any of the exemptions stated in Article 1 of the New Traffic Rules. These exemptions are as follows: (Informal translation) “First: Categories exempted from the conditions set forth inparagraph (d): 1. The male Kuwaiti citizen’s foreigner wife, widow or divorcee who has children from him; 2. The female Kuwaiti citizen’s foreign non-resident husband and children; 3. Non-residents holding valid security cards; 4. Students enrolled in a university or applied institute inside Kuwait; 5. Housewives who have children provided that their husbands are authorised to hold driving licenses provided they are not drivers and messengers; 6. Diplomatic corps staff members; 7. Professional players in sporting clubs and federations and governmental bodies; 8. Drivers and messengers who have legal valid driving licenses issued from their country of origin or any other country; 9. Private domestic helpers and their equivalents who have been employed for minimum five successive years

provided that the profession will be changed to driver; 10. Technicians specialised in oil activities in oil companies; 11. Undertakers; 12. Nursing staff members including male and female nurses, physiotherapists and artificial limbs technicians; and 13. Medical emergency technicians, ambulance attendants and lab and radiology arrangers; Second: Categories exempted from the residency and salary conditions set forth in paragraph (d): 1. Judges, Public Prosecution members, counsels and experts; 2. The faculty members in universities and applied institute; 3. Managers of companies and establishments, journalists and media people; 4. Pilots, captains and their assistants; 5. Physicians, pharmacists, engineers, associate engineers and accountants of different titles; 6. Teachers and social workers; 7. Legal researchers, translators, librarians and mosque Imams employed by governmental bodies; and 8. Sporting trainers employed by sporting federations and clubs and governmental bodies.” Commercial visit visas; processing of work authorisations and work permit Foreign nationals who enter Kuwait on business or commercial visa of a corporate sponsor had previously been allowed by Kuwaiti authorities to stay in the country while processing their work permit for the same sponsor. This process was suspended by Kuwaiti authorities. As such all foreigners seeking to work in Kuwait would have to undergo the standard process of entry; they would have to remain outside of the country while their work authorisations are processed at Kuwait’s Ministry of Social Affairs & Labour (MOSAL). After receipt of the work authorisation, the sponsor on behalf of the foreign national will apply to the Ministry of Interior (MOI) for a working (no-objection) visa. It generally takes up to two weeks to receive a working visa. Before arriving in Kuwait the foreign national will be sent two originals of the working visa in his/her home country. The foreign national will contact the Kuwait

Embassy in their home country and will course of 2014 Oman will be gradually be directed to undergo medical tests. He/ introducing a Wage Protection System. This she then submits the results of these tests will apply to the banking sector first and to the Kuwait Embassy along with a copy gradually be extended to all employers in of his/her passport. If the medical tests are Oman in accordance with their grade as per in order, the Kuwait Embassy will stamp the Chamber of Commerce classification the working visa. This may take from two (starting with Excellent Grade companies). to three weeks to complete. It has also been reported that the Shura Upon the foreign national’s arrival in Council proposed the introduction of a two Kuwait, the sponsor may begin the process per cent tax on remittances by workers to their of applying to the MOSAL and subsequently home countries. Members of the State Council to the MOI, to obtain a work permit and have officially declared that - for the time being residency stamp to enable the foreign - they are not in favour of such proposal. national to legally work and reside in Kuwait. Kingdom of Bahrain Sultanate of Oman

(contribution from Alessandra Zingales, Jihad Al Taie) In common with the rest of the GCC, promoting the employment of nationals continues to be a major objective of the Ministry of Manpower, with an announcement that, in various business sectors, no further approvals for the employment of foreigners would be granted between November 2013 and April 2014; with the exceptions of those working on government projects or employers classed in the top category of employer (for compliance purposes and employment of nationals). To further support the employment of nationals, the Ministry of Manpower issued a decision which allows employers in the private sector to hire Omani employees on a part time basis. Subject to certain conditions, up to 10 per cent of the Omanisation rate applicable to the employer may be filled by part-time workers. Additional requirements have been introduced to obtain labour clearances to employ foreign staff and the application process has been modified by limiting the possibility to convert visas in country (eg. from tourist visa to resident visa). Problems have been reported in obtaining labour clearances for female expats. No official decision has been published in this respect but the Ministry of Manpower appears to have adopted a rather strict policy and has been reported to reject rather consistently labour clearance applications for female expats. Some exceptions are being made for female professionals. From 1 July 2013, the minimum salary for Omani nationals has been increased from RO 200 to RO 325 (at least RO 225 as basic salary and RO 100 as allowances). It has been announced that, in accordance with a joint project of the Ministry of Manpower and the Central Bank of Oman, during the

(contribution from Steve Brown, ASAR) The Kingdom of Bahrain has continued in its efforts to fully roll out ministerial orders contemplated in the 2012 Bahrain Labour Law. We anticipate further ministerial orders to issue during the course of 2014. LMRA Fees The Bahrain government lifted the stay on collection of monthly Labour Market Regulatory Authority (LMRA) fees during 2013; however, a discount on monthly fees (to BD 5) for the first five expatriate employees has been instituted while full monthly fees of BD 10 would apply to each additional expatriate employee has been imposed indefinitely. Working while under travel bans Under existing regulations, an employee whose work permit has been canceled for more than 30 days may not mobilise to a new employer without exiting Bahrain. This has complicated the circumstances of many expatriate employees facing travel bans (eg arising from loan defaults) who are unable to exit Bahrain and cannot obtain lawful employment since work permits may not process prior to an exit from the Kingdom. During the later half of 2013 and through 2014, the LMRA and immigration officials have reportedly agreed to mechanisms to permit new work permits to issue to expatriates facing travel bans. This cooperation is expected to decrease instances of illegal employment while facilitating repayment of creditors by expatriates facing such bans (and ultimately seeing those bans lifted). Driving in Bahrain Ongoing discussions in parliament regarding a new traffic law to replace the existing traffic law issued in 1979 have delayed implementation. Reportedly, under the

draft new traffic law, police may prohibit expatriates from obtain a driving license in Bahrain based upon their profession and other criteria. According to the Gulf Daily News on 28 February, some MPs are calling for the articles limiting driver’s licenses for expatriates to be removed as discriminatory and unconstitutional. Further information

If you would like further information on any issue raised in this update please contact: KSA, UAE & Qatar

Sara Khoja, Clyde & Co E: sara.khoja@clydeco.com Kuwait

Rob Little, ASAR E: rlittle@asarlegal.com Edlyn Verzola, ASAR E: everzola@asarlegal.com Sultanate of Oman

Alessandra Zingales, Jihad Al Taie E: alessandra@jatlo.com Bahrain

Steve Brown, ASAR E: sbrown@asarlegal.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. Clyde & Co LLP is a limited liability partnership registered in England and Wales. Regulated by the Solicitors Regulation Authority. QFC Branch licensed by the QFCA. Abdulaziz A. Al-Bosaily Law Office in association with Clyde & Co LLP is licensed in Riyadh – see www.albosailylawoffice.com for licence detail. © Clyde & Co LLP 2014 MELU - 003 - 0214 www.clydeco.com For an online version, please visit:

www.smeadvisor.com/2014/04/ understanding-the-new-employmentlegislation-in-the-gcc/

March 2014

INDUSTRY WATCH

Adopting Corporate Governance Corporate Governance is one of the key pillars of economic development and there has been an increased focus on effective governance frameworks across many countries. To address the growing regulations surrounding corporate governance, Deloitte recently held an inauguration ceremony in Dubai to launch the Deloitte Middle East Centre for Corporate Governance.

he Deloitte Middle East Centre for Corporate Governance will support organisations manage the stringent global and regional regulations that require them to adopt corporate governance processes.

The Deloitte Middle East Centre for Corporate Governance offers resources for executives, directors, and other stakeholders who are active in governance, to help assess an organisation’s governance processes, including benchmarking them against best practices, and ensuring they meet the needs of the business.

Fadi Sidani, Enterprise Risk Services leader at Deloitte Middle East, commented: “The Deloitte Middle East Centre for Corporate Governance offers resources for executives, directors, and other stakeholders who are active in governance, to help assess an organisation’s governance processes, including benchmarking them against best practices, and ensuring they meet the needs of the business.” “Proper governance frameworks strengthen accountability mechanisms and open channels of communication within and across the various market players,” said Rami Wadie, Partner and Corporate Governance leader at Deloitte Middle East. “As such, it is essential for companies and organisations in the region to have a proper understanding of sound governance practices and frameworks.” “The benefits of effective governance for any organisation are obvious: from protecting the organisation’s reputation, to enhancing market value, creating effective risk management processes and increasing awareness of all the developments in the firm,” concluded Wadie.

The new Dubai Association Centre The Dubai Chamber of Commerce and Industry, in collaboration with the Dubai Department of Tourism and Commerce Marketing (DTCM) and Dubai World Trade Centre (DWTC), launched the Dubai Association Centre (DAC). The new initiative reinforced Dubai’s position as the region’s leading commercial hub.

is Excellency Hamad Buamim, President & CEO, Dubai Chamber, and His Excellency Helal Saeed Al Marri, who is Director General, Dubai Department of Tourism and Commerce Marketing (DTCM) and head of Dubai World Trade Centre (DWTC), signed the MoU and agreed to collaborate to define and establish a platform in Dubai for international professional and business associations to operate from the Emirate and to cater to the region and beyond. The primary goal of the DAC will be to offer assistance for the establishment of International non-profit, professional associations and trade bodies in Dubai. Establishing an association within DAC provides an array of benefits and enables access to a relatively untapped market for international associations. A DAC licence

enables associations to open an office at the DWTC’s Sheikh Rashid Tower and enjoy use of the complex’s numerous facilities. In addition, associations established within the DAC will be entitled to apply for residency visas for their employees; can open a local bank account; and will be able to offer services and products to the constantly developing regional market. They will also be invited to attend monthly networking events and will have access to key government stakeholders through the three founding organisations. It will allow for a formal environment where associations can form a membership-based community or open a regional representative office to conduct business in the UAE and beyond, said HE Buamim. He added, “Dubai today is an international centre for hosting major global events, exhibitions and conferences and is the world’s next door neighbour at the crossroads of Africa, the Middle East and Asia. We offer easy access to many of the world’s largest and fastestgrowing economies. The associations will benefit from economies of scale, experience in the association marketplace, flexibility and adaptability, increased buying power and centralised facilities at the centre.” HE Helal Saeed Al Marri, Director General, Dubai Department of Tourism and Commerce Marketing and head of Dubai World Trade Centre, commented: “It is our aim to ensure that doing business in Dubai is made as easy as possible, and to grow Dubai into an international hub for associations. This centre promises to offer a professional and supportive environment in which worldwide associations can base their headquarters. DAC will foster the development of scientific knowledge and professional education in the Emirate.”

March 2014

INDUSTRY WATCH

TECOM'S MEDIA CLUSTER FLOURISHES TECOM’s Media Cluster welcomed 233 new business partners from across the media value chain into its portfolio.

ECOM’s Media Cluster, incorporating Dubai Media City, Dubai Studio City and International Media Production Zone, witnessed significant growth over the course of 2013 and is now home to 2,000 business partners. New leases and expansions signed during 2013 account for 622,000 sq. ft. of space being utilised. Part of TECOM Investments – a member of Dubai Holding – TECOM’s Media Cluster welcomed 233 new business partners from across the media value chain into its portfolio. Contributing to the growth of new enterprises, 45 freelancers joined the media cluster, adding to the talent pool that services a large number of companies within the free zones. Over the course of 2013, various sectors within the business park saw substantial growth, including printing consumables, which has grown by 233 per cent since 2012, and animation which has recorded growth of 57 per cent. At an operational level, Dubai Studio City (DSC) completed construction of its three soundstages, which are the largest of their kind in the MENA region and are specifically designed to meet the increasingly sophisticated needs of the entertainment industry, a segment with significant growth potential in the region. Mohammad Abdullah, Managing Director, TECOM Media Cluster, commented: “2013 was a very strong year for the Media Cluster with widespread growth and expansion across our three business parks. This is testament to the growth of Dubai’s wider economy, and the revival of confidence in Dubai after a positive 2013, which included winning the Expo.

2013 was a very strong year for the Media Cluster with widespread growth and expansion across our three business parks. This is testament to the growth of Dubai’s wider economy, and the revival of confidence in Dubai after a positive 2013, which included winning the Expo. “We are delighted to have welcomed such a large number of new business partners into our community, and that we have also been able to support our existing business partners in their growth and development. Freelancers have made up a significant percentage of our newcomers, and I am confident that we will be able to provide them with the infrastructure and support they need to grow their businesses. I believe that 2014 has the potential to be another year of strong growth for both the Media Cluster and the wider media industry in Dubai, particularly across digital, and the creation of world class Arabic content, and I am optimistic about Dubai’s continued growth as a strategic business hub.”

Deloitte’s Millennial survey Deloitte recently revealed the results of its third annual Millennial Survey. The findings highlighted significant challenges facing business leaders if they are to meet the expectations of the Millennial generation.

illennials, who are already emerging as leaders in technology and other industries and will comprise 75 per cent of the global workforce by 2025, want to work for organisations that foster innovative thinking, develop their skills, and wish to see them make a positive contribution to society. The study also reveals that Millennials believe businesses are not currently doing as much as they could to develop their leadership skills and that they need to nurture their future leaders, especially as they cannot count on them biding their time until senior positions arise. Key findings from the survey include:

• Business could achieve more. While most Millennials (74 per cent) believe businesses are having a positive impact on society by generating jobs (48 per cent) and increasing prosperity (71 per cent), they think businesses can do much more to address society’s challenges in the areas of most concern: resource scarcity (68 per cent), climate change (65 per cent) and income equality (64 per cent). Additionally, 50 per cent of Millennials surveyed want to work for a business with ethical practices. • Organisations must foster innovative thinking. Millennials want to work for organisations that support innovation. In fact, 78 per cent of Millennials are influenced by how innovative a company is when deciding if they want to work there, but most say their current employer does not greatly encourage them to think creatively. They believe the biggest barriers to innovation are management attitude (63 per cent), operational structures and procedures (61 per cent), and employee skills, attitudes, and (lack of ) diversity (39 per cent). • Organisations must nurture emerging leaders. Over one in four Millennials are ‘asking for a chance’ to show their leadership skills. Additionally, 75 per cent believe their organisations could do more to develop future leaders. • Millennials are eager to make a difference. Millennials believe the success of a business should be measured in terms of more than just its financial performance, with a focus on improving society among the most important things it should seek to achieve. Millennials are also charitable and keen to participate in ‘public life’: 63 per cent of Millennials donate to charities, 43 per cent actively volunteer or

are a member of a community organisation, and 52 per cent have signed petitions. “To attract and retain talent, a business needs to show Millennials that it is innovative and in tune with their world view,” said Rana Ghandour Salhab, talent and communications partner at Deloitte Middle East. “The society globally faces many critical issues and it has become clear no sector should ‘go at it alone.’ By working together and combining their different skills, businesses, governments and non-government organisations (NGOs) have an opportunity to reignite the Millennial generation and make real progress in solving the society’s problems.” “It is clear that Millennials want to innovate and businesses should be listening,” said Salhab. “Fostering a culture of innovation will not only help retain highperforming talent but it will also drive growth by creating opportunities for individuals to unlock the next game-changing innovations.”

March 2014

INDUSTRY WATCH

Dubai Industrial City enjoys growth Dubai Industrial City, a member of TECOM Investments, witnessed a successful year in 2013 with strong financial performance, where revenue increased by 33.2 per cent.

he increase in revenue was driven mainly by land leases and warehouses lease, which registered an increase of 44.1 per cent and 51.6 per cent respectively. The City saw a remarkable growth on all sides, where it attracted 158 new companies in 2013. Strong results were also achieved in all products in Dubai Industrial City, where the new industrial land leases grew four times more than last year. Moreover, warehouses’ occupancy rate reached 91 per cent and labour villages’ occupancy rate reached 79 per cent in 2013. Abdullah Belhoul, CEO of Dubai Industrial City, said: “Growth in Dubai Industrial City continues to stress on the industrial sector success story in the UAE, where the sector contributes with 10 to 14 per cent in the national GDP. The increase we have witnessed in 2013 also highlights our efforts in meeting the demand in this industry and our vision to provide a highly competitive platform for growth in the manufacturing and logistics sector in the UAE.” Belhoul added: “The newly established Halal Cluster in Dubai Industrial City stems from our ambition to act as a true enabler of Dubai’s ambition to become the global capital of the Islamic economy. With the support of Standards Department at Emirates Authority for Standardization and Metrology (ESMA), and Accreditation Department at Dubai Municipality, we

have succeeded in creating a dedicated platform for companies and investors with halal operations in the UAE.” Dubai Industrial City is considered one of the largest industrial destinations in Dubai and is spread across 55 square kilometers (560 million square feet) of land. It was established to serve as a catalyst for the growth and expansion of the industrial sector in the UAE – with specific emphasis on Machinery and Mechanical equipment, Transport Equipment and Parts, Base Metal, Chemicals, Food and Beverage and Mineral Products.

Dubai Industrial City is considered one of the largest industrial destinations in Dubai and is spread across 55 square kilometers (560 million square feet) of land. It was established to serve as a catalyst for the growth and expansion of the industrial sector in the UAE.

In focus: Construction sector A recent survey by international law firm, Pinsent Masons, highlighted the growing optimism in the Gulf construction market.

he sixth annual GCC Construction Survey by Pinsent Masons found that 90 per cent of companies perceived there to be greater optimism in the market, with 77 per cent reporting a healthier order book for the next 12 months, relative to the previous year. However, the survey also suggested that this could be dampened unless action is taken to address financerelated concerns. This was reflected in the fact that 96 per cent of respondents, which included some of the region's largest contractors, developers, consultants, and other stakeholders, claimed that the cost of capital for projects was either expensive (43 per cent) or more expensive (53 per cent) than it was in 2012. Just four per cent thought the cost of capital was getting less expensive. As such, the issue of access to finance to fund projects and growth was highlighted as one of the most significant risks tempering the sector’s optimism for 2014.

Cash flow was also cited as a concern, with 62 per cent of companies complaining of longer payment periods, although this is a reduction from the 78 per cent of companies who expressed concern over the issue in the previous year's survey. Commenting on the results, Sachin Kerur, Head of Gulf Region at Pinsent Masons, said: “The GCC construction sector is clearly very positive about the outlook for the coming year. The broad base recovery in the construction market sets a solid foundation for growth to continue in 2014, but it remains crucial we capitalise on the potential of this sector at this critical juncture. A number of major projects on the immediate horizon, such as Expo 2020 and the Qatar World Cup, have added a real sense of momentum. "However, it is important to address the issues surrounding finance. Companies are reporting that the cost of capital is more expensive, and that accessing finance for projects more generally is a concern. They also tell us that their margins are being squeezed due to rising production costs and inflationary pressures. “With traditional forms of bank funding still less available than has been the case in the past, it is likely that the trend of going straight to investors through bond issuance and other forms of financing will grow as various

The issue of access to finance to fund projects and growth was highlighted as one of the most significant risks tempering the sector’s optimism for 2014.

players position themselves for the significant projects likely to be procured. That presents a real opportunity for investors. In some senses the state has little room to influence that, but could consider adopting standard payment terms to improve cash flow and reduce delays in payment.”

March 2014

INDUSTRY WATCH

New entrepreneurial programme Registrations are now open for the new Certificate programme in Professional Retail Business Management offered by the Dubai Entrepreneurship Academy.

he Certificate programme in Retail Business Management provides participants with all the information needed to launch a successful retail project and learn from specialised instructors and lecturers. The Academy, based within Dubai SME, aims to empower entrepreneurs and innovative thinkers to successfully navigate the business world and excel in competitive business environments through a series workshops and sessions. The programme runs from the April 14 to May 26, 2014 and comprises 16 sessions covering the strategic fundamentals of starting a business. The topics include Entrepreneurship & Business Development, Entrepreneurship & Innovation, Developing and Launching a Business Plan and New Venture, Analysis of Retail Environment & Strategy, Buying & Merchandising, Retail communications & Visual Merchandising, Principles of Marketing and Digital & Social Media Marketing. Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, said: “The workshops are so designed to cover the most important specialisations of retailing

and entrepreneurship including business start-up and development, administration management, strategy analysis, marketing and social media applications.” Al Janahi added: “The programme stresses on comprehensive and practical application of skills and also provides participants with the opportunity to intern in a leading outlet in Dubai to learn more about retailing and gain experience in the field.” Ibtihal Al Naji, Director of Partnership Development at Dubai SME, said “The Dubai Entrepreneurship Academy has so far graduated 120 entrepreneurs in its Entrepreneurship Diploma and no less than 150 completing the Certificate Programme in Hospitality and Restaurant Management. With new programmes progressively added, the Academy is expected to have 1,000 graduates in various disciplines by the end of 2014. “Building a new generation of entrepreneurs, demands enthusiasm and participation and SMEs have a very important role in developing the UAE economy.

The Academy, based within Dubai SME, aims to empower entrepreneurs and innovative thinkers to successfully navigate the business world and excel in competitive business environments through a series workshops and sessions. Dubai SME considers it our responsibility to motivate and inspire new businesses and offer opportunities for enthusiastic young people to launch their projects to help build the national economy.”

March 2014

TECHNOLOGY FOR BUSINESS

Etisalat Group and Huawei join forces In a joint initiative, Etisalat Group and Huawei will work together in the development of 5th generation (5G) mobile broadband.

aying the foundation for the next generation of super-speed connectivity, Etisalat Group and Huawei announced the signing of a new series of agreements that will see the two companies deepen their cooperation in pioneering telecom broadband services over the next five years across the region. For the first time in the region, Etisalat Group and Huawei will cooperate in the development of 5th generation (5G) mobile broadband. A joint team will be set up to conduct the trial of 5G services – anticipated to be the first ever trial of its kind across the MENA region. Hatem Bamatraf, Chief Technology Officer at Etisalat Group, commented: “The future of the digital society remains a promising one as people, businesses and cities become more profoundly connected through vibrant information and communication technologies.” “Etisalat Group remains committed to bringing its customers the latest and most advanced services. We have

focused on constantly enhancing our networks, creating strong partnerships, and bringing innovative technologies our markets,” he added. By 2020, it is estimated that 6.5 billion people worldwide will use mobile networks for data communications and that 100 billion additional ‘things’, such as vehicles, meters, medical devices, and home appliances, will also be connected via broadband networks. For the first time in the region, Etisalat Group and Huawei have also agreed to work together to trial ultra-fast fiber telecommunication services. The two companies agreed to trial a 40Gbps fiber network that can

eventually provide the increased speed and bandwidth required for seamless services including voice over IP, highspeed Internet, and IPTV going directly to the premises of the home and business users. Prior to this year’s string of agreements, Etisalat Group and Huawei have worked on numerous landmark projects in the Middle East telecommunications sector over the last 10 years. During last year’s Mobile World Congress, the two companies signed a major global agreement focusing on the enhancement of mobile broadband services and its digital services portfolio.

Top honour for Emax Emax emerged on the topmost position in the 2013 Consumer Friendliness Index under the Electronics Category.

he Middle East electronics retailer, which is part of the Landmark Group, was recently honoured by the Department of Economic Development (DED) after topping the 2013 Consumer Friendliness Index in the Electronics category. The DED Index and Awards seek to promote best practices in the local retail sector by

ranking retail companies from six categories on excellence in service, competitiveness and best practices. Receiving the award, Neelesh Bhatnagar, CEO of Emax said: “This is yet another recognition for Emax customer service excellence and testifies to our leadership of the industry. Emax is constantly working

towards delivering higher customer satisfaction and we are most pleased to be rewarded by DED for our relevant category. This Index reflects the consumer’s voice

transparently, and that’s why we see it’s important to provide our customers with the best practices at the shop floor level and answer all their inquiries professionally.”

mGovernment’s training portal

s part of the ‘mGovernment Initiative’, a special e-portal has been launched that enables users to register for mGovernment training programmes. The platform will act as a reliable source for getting detailed and precise information about training programmes and courses. These programmes are aimed at preparing and training nationals from various government entities at both federal and local levels. This comes as a part of an integrated strategy aimed towards successfully achieving the smart government transformation process in the UAE over the next year. His Excellency Hamad Obaid Al Mansouri, Deputy Director General for Information and e-Government Sector at the TRA said: “The launch of this platform gives a strong impetus to the mGovernment Training Project which

contributes significantly to promoting a knowledge-based culture and economy in general, while raising awareness on the mGovernment concepts in particular.” Engineer Majid Al Madhloum, Project Director of Mobile Government Training Programme commented: “The launch of the mGovernment training portal will facilitate the training process and enable better access to the mGovernment programmes and courses offered by this initiative; thus reaching a larger segment

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of those interested in developing their skills to keep up with the mobile government transformation process.” “We call on all government entities in the UAE to seize this opportunity and register their employees who are interested in obtaining appropriate training in the mGovernment transformation project, according to the requirements and field of work in each entity. We would like to emphasize that the content of the courses are very rich and instructive as they were designed carefully and thoroughly to benefit and prepare the trainees to achieve the needed results,” he added. The training courses will include various important topics including the management of smart services in the UAE, the mGovernment IT infrastructure, security of smart applications and smart application developers, as this topic is essential for all who support the mGovernment initiative and seek to understand mechanisms for developing smart applications.

March 2014

THE NEXT LEVEL

BYOD what does it mean for your SME?

SME Advisor got to the heart of the ‘Bring Your Own Device’ debate and asked Asfar Zaidi, Principal Consultant at Huawei Enterprise Middle East, to explain this popular tech trend and what it means for SMEs…

hat is this new concept and why is it taking the business world by storm?

the first movers in BYOD adoption have already proven incredible value of these solutions with a host of successful case studies available across the region.”

“As the proliferation of mobile devices continues to grow at a rapid pace in the Middle East, the way that we use our smart devices is also evolving with individuals What does the new BYOD culture mean for an SME? demanding more remote accessibility and performance “Confidentiality of information and file sharing is a security on-the-go. Bring Your Own Device (BYOD) is a concept issue for all companies regardless of their size; therefore which highlights the challenges IT departments within SMEs are equally affected. The BYOD culture is happening companies face as they attempt to control the security within enterprises of all sizes. As the consumerization of of work information when employees ultimately use IT spreads, more employees insist on using their hand held personal devices for work use. This will inevitably smart devices for work. “An increase in the adoption of BYOD policies helped to lead to security breaches as employees demand access drive the mobile computing industry to new heights in 2013. to company networks and files on-the-go. SMEs need This year we will likely see more of a deployment of BYOD to ensure they have a secure BYOD strategy in place and platforms that can bring together security, networking implement a Mobile Device Management (MDM) system, and collaboration tools on one unified system. Some of to avoid potential security threats to their networks.”

March 2014

THE NEXT LEVEL

• Any data that users read and edit inside the modern BYOD platform can also be encrypted so that it cannot be copied to locations outside the platform, and vice versa. • Further controls can prevent breaches of enterprise data by restricting access to certain websites and application. • Comprehensive MDM platforms are also available on the latest generation of BYOD solutions, enabling organisations to have greater control in registering assets on the network, launching security policies across registered devices, running security applications from day-to-day, and then retiring devices from the network quickly and securely. How does MDM play a key role in this context?

“Mobile Device Management platforms are essential for businesses to manage the flow of data into the network from smart devices and crucial to build a safer environment. It is also equally important to understand the full lifecycle of BYOD devices. We see this as four phases, namely acquiring & registering assets, deployment, running policy enforcement, and retiring devices once no longer required. Today vendors like Huawei can offer a holistic MDM solution across this device lifecycle, and that equips end users with a much more compelling proposition to their Asfar Zaidi, Principal Consultant, Huawei Enterprise Middle East business. “As an example, Huawei is transforming the office of the future with its Huawei websites to chatting with others via instant AnyOffice solution—a single platform messaging. The non-work activities can through which to securely access a wide By adopting a BYOD pose serious and frequent information range of applications and handle important security risks for enterprises, for example business tasks anytime, anywhere, and culture within the the loss of data and cyber security breaches. from any smart device.” workplace, an SME These risks are prevalent when sensitive can promote a more enterprise data and personal privacy data What kind of business opportunities can are stored at the same location without an SME generate by adopting the BYOD productive team as a any separation or isolation policy.” culture within its organisation? result of more flexible “By adopting a BYOD culture within and more content How does a business ensure that its critical the workplace, an SME can promote a employees. data and other programmes on the device more productive team as a result of more are securely controlled and managed? flexible and more content employees. “There are now robust BYOD platforms Their workforce will be able to work on the market today, which can greatly remotely and therefore more efficiently What are some of the risks associated minimize the threat of data being breached as they are not be hindered by desktop communication.” with BYOD? or lost. “Employees use many different smart • Enterprise data and application software devices in the workplace for both work can, for example, be isolated to inside For an online version, please visit: and personal matters; ranging from work a secure intranet with key documents www.smeadvisor.com/2014/04/byod-whatse-mails and visiting social networking and data automatically encrypted. in-it-for-your-sme/

38%

Procurement cost

Cycle time

weeks

Implementation

Contract Spend (February 2014) DM Phase 1 AED 68,000 Princess Tower AED 67,000 Central Stores AED 69,000 DT Master Community AED 74,000

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Order Approval 800000009

1007CC - Greens Common

Arabian Ranches AED 68,000

Order Summary

Ordered By

Committed

Under Review

Item Details

Rob Lawson

March Date 65k 70k 10k 15k 20k 25k 30k 35k 40k 45k 50k 55k 60k 75k15, 2013 Amount AED 11,659.53 AED

2:47 PM

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Budget Reserve

Reject Comments and History 2013-03-16 13:37:14 | Order Approved by Greg Styles 2013-03-16 16:22:36 | Order Approved by Mark Peters

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